Fiscal Year 2013-2015 Special Budget Meeting

CITY HALL - 1 CITY OF OAKLAND FRANK H. OGAWA PLAZA - OAKLAND - CALIFORNIA "^94612 To: Oakland City Councilmembers and Members of the Public From: Councilmembers Gibson McElhaney, Kalb, and Kaplan Date: June 20, 2013 Subject: Budget projections and proposal for allocation Excess Real Estate Transfer Tax (RETl^ z 2 o h Projections for Excess RETT in FY 13-14 and FY 14-15 ~ o m Immediate (FY 12-13) FY 13-14 FY 14-15 $3,000,000 $365,000 $1,980,000 *We believe that the§:tual 'Excess RETT" in FY 13-14 and FYJ4-15 is likely to be significantly greater than the projections indicated here. Nevertheless, we are using the Administration's conservative projections. Total Excess RETT = $5,345,000* II. Appropriation of Excess RETT We propose for your consideration the following recommended FYs 13-15 budget proposal for excess Real Estate Transfer Tax (RETT) as identified pursuant to Ordinance 13134 CMS, presuming successful passage of the recent amendments on second reading at the June 27, 2013 Council meeting. This proposal is for excess RETT identified in FY 12-13, as well as excess RETT projected for FY 13-14 and FY 14-15. Pursuant to the uses authorized by Section D of that Ordinance, and in the interest of balancing immediate needs with fiscal responsibility, we recommend that these funds be allocated amongst the following uses by the noted percentages: Item # Appropriation % of Annual Excess RETT $ Allocation 1 Added to the Capital Improvements Reserve Fund for deferred infrastructure projects. 15% $801,750 2 Set aside for payment of long-term liabilities (Other Post- Employment Retirement Benefits (OPEB) trust and Police and Fire Retirement System (PEERS)), with exact amounts allocated toward OPEB and/or PEERS to be proposed by the City Administrator and approved by the Council on an annual basis. 10% $534,500 3 Added to the General Purpose Funds (GPF) Reserve for litigation or other unanticipated purposes, unless such Reserve has reached 9% of current budgeted year GPF appropriations, in which case Item #3 funds shall be distributed equally amongst and added to the uses identified for Items 1, 2, & 4. 35% $1,870,750 4 Programmed into proposed budget for one-time uses as determined by Council pursuant to Section D of Ordinance 13134. 40% $2,138,000 Grand total Excess RETT = $5,345,000 Dan Kalh, Coimcilmember apian, Council President Pro Tern