Fiscal Year 2013-2015 Special Budget Meeting

HONORABLE MAYOR AND CITY COUNCIL Subject: Proposed FY 13-15 Proposed Policy Budget Date: June 21, 2013 Page 2 Comprehensive Annual Financial Report (CAFR) estimated to be completed by October 2013. If there are significant specific changes to revenue or expenditure projections prior to the adoption of the FY 2013-15 budget, the City Council will be notified by infonnational memorandum as we have done in the past, for example, with the upward adjustments in parking revenues, and additional required spending for Kid's First. 2) When will the Administration Issue Business Delinquency Notices? How much would be the Projected Revenue? The business tax delinquency notices are scheduled to go out on July 8, 2013. The revenue for the delinquencies (NODs) is estimated to be $600,000 and will be accrued for FY 2012-13 per the City's accrual policy and have already been factored in the FY 2012-2013 budget. Public Safety—Fire 1) Provide clarification on the SAFER Grant Budget in relation to the General Purpose Fund. The SAFER grant was awarded to the City in a total amount of S7.8 million to be used over a two year period. This handing is restricted to fund only newly hired firefighters. It is anticipated that 24 new firefighters will fill exisfing vacancies in July 2013 upon completion of the academy. Because the grant fiinding will off-set the cost to the existing vacant General Purpose (GPF) funded posifions (24.00 FTE), the $7.8M was reduced from the General Purpose Fund ($3.9 million each fiscal year). The SAFER grant is reimbursable, therefore the costs associated with the newly hired firefighters will charge directly to the grant fund, and then be reimbursed in that same hand. The result of the City receiving this grant funding is a direct savings to the General Purpose Fund (GPF), in which the savings has already been accounted for in the FY 2013-15 Proposed Policy Budget (Page E-24). Please note that this is reflective of a standard grant accounting practice. This savings in the Fire Department's GPF budget is primarily off-set by the increase in the cost of both fringe and retirement in FY 13-14, as well as the sunset of concessions in FY 14-15 (e.g., 8.85% salary reduction, etc.). In July 2013, the SAFER grant amount will be appropriated in the grant hind as approved by the City Council resolution #84241 C.M.S. Please refer to the report and resolution, which can be accessed at the below link: http://oakland.legistar.com/LegislationDetail.aspx?[D=1282924&GUID=E9786BB4-lCQQ-4CC3-BDF3- 3 A1DE98C4B41 &Options-IDITe.Kll&Search-SAFER The ability to use this SAFER grant and adhere to standard grant accounting practices avoided $7.8 million of additional cuts. Human Services 1) Provide clarification on the Senior Companion Position.