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Record of Proceedings

Oakland Finance Committee Meeting on Tax Options and OPD Overtime - September 30, 2025

City Council — Tuesday, September 30, 2025
BodyOakland, California
SessionCity Council
DateTuesday, September 30, 2025
StatusFILED
Video Record
0:00 / 1:38:05
Transcript — Verbatim
2:34

Okay.

2:38

Okay.

2:40

Okay.

2:58

Hear me?

2:59

There we go.

3:00

Welcome to the Finance and Management Committee meeting of today's date, Tuesday, September 30th.

3:06

The time is now nine thirty-two AM, and this meeting has come to order before taking roll.

3:14

I will provide instructions on how to submit a speaker's card for all of the items on this agenda.

3:18

If you're here with us in chambers and you would like to submit a speaker's card, please fill one out and turn into a clerk representative or myself before the item is ready to record.

3:29

Speaker cards were due twenty-four hours prior to this prior to the start of this meeting, making that time yesterday at nine thirty AM.

3:36

This meeting came to order at nine thirty-two.

3:39

Speaker request will no longer be accepted ten minutes after the meeting has begun, making that not that time nine forty-two.

4:03

Thank you.

4:03

Council Member Wong.

4:10

Thank you.

4:21

Yes, please.

4:21

Good morning, everyone.

4:22

Welcome back to our regular finance committee meeting, sorry, and then we're gonna jump to item eight and then return to the rest of the order.

4:27

And that's it.

4:41

Thank you.

4:44

Thank you.

4:45

Chair Ramachandra, noting items will go out of order.

4:48

We'll go in the order for two and three.

4:50

Then we would take item eight, and then the rest of the agenda will be as ordered.

4:57

Item one.

4:54

Because this is special meeting, there are no minutes to be approved.

5:02

Moving to item two, that is determination to schedule outstanding committee items, and that is also known as your pending list.

5:15

Nothing at this time, thank you.

5:16

Okay, I will entertain a motion.

5:24

I'll move the item.

5:28

Second.

5:31

Thank you.

5:31

That is a motion made by Councilmember Brown, seconded by Councilmember Unger to accept the termination of schedule outstanding committee items as is on roll.

5:41

Councilmember Brown.

5:43

Aye.

5:44

Councilmember Unger.

5:45

I.

5:46

Councilmember Wong.

5:48

Aye.

5:48

And Chair Ramachandran.

5:50

Aye.

5:51

Thank you.

5:51

We have four ayes.

5:54

To accept the termination of scheduling outstanding committee items as is.

5:58

Moving to item three.

6:00

Oh.

6:06

Receive an informational report regarding OPD overtime.

6:09

And you do have two speakers, three speakers for this item, excuse me.

6:17

Good morning, Chair and members of the committee.

6:19

Laraja Marshall, the fiscal services manager for the Oakland Police Department.

6:23

Before you is the fiscal year 2024 through 25 overtime report covering the data through the third quarter.

6:31

This information does not include the fourth quarter, our current information.

6:37

At the start of the fiscal year, City Council approved an adopted budget for overtime allocation for 44.6 million.

6:45

In September 2024, under the city's contingency plan, the department was reduced by 1.7 million.

6:52

In December 2024, the amended budget was approved, an additional 20 million reduction, further reducing the overtime to 22.8 million, a 51% cut from the adopted.

7:04

At the time of the December reduction, the department had already spent 27.1 million, exceeding the new allocation by 4.3 million.

7:13

To align with the budget to align with the budget reductions in December 2024, the department implemented a 20% reduction in overtime spending, a new target of 10.3 million per quarter.

7:27

In the third quarter, the actual overtime totaled 7.9 million, which was 2.4 under the target.

7:34

Despite this improvement, year-to-date spending still projects the overtime overage of 26.6 million based on the amended budget factoring and reimbursements.

7:44

At the end of the third quarter, the department receives $6 million in reimbursements.

Discussion Breakdown — Share of Meeting
Fiscal Sustainability████████████████████████████████████████████44%
Public Safety██████████████████████████████████34%
Procedural██████████10%
Workforce Development████4%
Contracting And Procurement███3%
Active Transportation██2%
Technology and Innovation██2%
Transportation Safety█1%
Summary of Proceedings

Oakland Finance Committee Meeting - September 30, 2025

This meeting of the Oakland Finance and Management Committee focused primarily on reviewing the police department's overtime spending and exploring potential tax options to raise $40 million for public safety. Other agenda items included approving the city's annual appropriations limit, investment policy, a professional services contract, and receiving a cash management report.

Public Comments & Testimony

  • Kevin Daly (Transport Oakland) spoke on two items:
    • On OPD overtime, he encouraged evaluating non-overtime police assignments, arguing traffic enforcement is ineffective compared to traffic calming.
    • On tax options, he suggested a Transportation Network Company (TNC) user tax on rideshares and implementing progressive parking fines.
  • Sada Al-Obbala expressed opposition to various existing city tax measures (Measures Q, N, AA, W, Y, U) and raised concerns about oversight and legitimacy.
  • Derek Barnes questioned the city's investment policies and adherence to sound financial management, referencing a grand jury report.
  • David Boatwright requested a review of inaccurate information on the city's website.

Discussion Items

1. OPD Overtime Report (FY 2024-25, Q3)

  • Staff Presentation: Fiscal Services Manager Laraja Marshall reported that despite a 20% reduction in discretionary overtime implemented in December 2024, the department still projects an $18.5 million net overage for the year, largely due to mid-year budget cuts.
  • Key Drivers: Overtime is driven by backfilling patrol vacancies, mandatory sideshow/holiday deployments, and understaffing in areas like dispatch (9 vacancies).
  • Council Deliberation:
    • Members expressed concern over the persistent overage and sought details on controls and staffing impacts.
    • Assistant Chief Tedesco stated discretionary overtime (e.g., high-visibility patrols) was canceled, leaving only mandatory and backfill overtime.
    • Questions were raised about fully reimbursing private entities for officer overtime and budgeting for training costs.

2. Options for a $40 Million Tax Measure (For June 2026 Election)

  • Staff Presentation: Budget Administrator Brad Johnson outlined potential tax increases to raise ongoing revenue, including a parcel tax ($224 per single-family home), utility tax, business tax, and others. He noted the reduction of the PFERS property tax override creates an offset for taxpayers.
  • Council Deliberation:
    • Members showed interest in a blended tax approach rather than a single large increase.
    • Requests were made for a supplemental report analyzing the historical and projected impact of the PFERS tax reduction on a sample property.
    • Councilmembers Wong and Brown inquired about structuring utility or parcel taxes progressively and about niche options like a vacant retail storefront tax.

3. Annual Appropriations Limit Resolution

  • Staff Presentation: Assistant Finance Director Brittany Hines presented the resolution establishing the Gann Limit for FY 2025-26 at $1.21 billion, with the adopted budget $186 million under the limit. The calculation includes voter-approved overrides.
  • Action: The item was forwarded to the full council for consent agenda approval.

4. Investment Policy & Cash Management Report

  • Investment Policy: Treasury staff presented the annual policy update. Councilmembers inquired about existing divestment ordinances (tobacco, guns) and potential impacts, with staff confirming no significant fiscal impact and that the portfolio avoids corporate bonds in sensitive industries.
  • Cash Management: The Q4 report showed a $2.2 billion portfolio with a 4.03% yield and full policy compliance. It was received and filed.

5. Oracle Consulting Services Contract

  • Staff Presentation: A request to extend a specialized consulting contract with Fusion BI Inc. was presented, citing the need for continuity in financial system reporting. A waiver of the local business solicitation process was requested due to highly specialized requirements.
  • Action: The item was forwarded to the full council for consent agenda approval.

Key Outcomes

  • OPD Overtime Report: Motion to receive and file the informational report passed 4-0 (Brown, Unger, Wong, Ramachandran).
  • $40 Million Tax Options: Motion to continue the item to the October 28th FMC meeting, with a request for a supplemental report on PFERS tax reductions, passed 4-0 (Brown, Unger, Wong, Ramachandran).
  • Appropriations Limit Resolution: Motion to forward to the October 21st City Council consent agenda passed 4-0 (Brown, Unger, Wong, Ramachandran).
  • Investment Policy Resolutions: Motion to forward two resolutions to the October 7th City Council consent agenda passed 4-0 (Brown, Unger, Wong, Ramachandran).
  • Oracle Services Contract: Motion to forward to the October 7th City Council consent agenda passed 4-0 (Brown, Unger, Wong, Ramachandran).
  • Cash Management Report: Motion to receive and file passed 4-0 (Brown, Unger, Wong, Ramachandran).

Meeting Transcript

Okay. Okay. Okay. Hear me? There we go. Welcome to the Finance and Management Committee meeting of today's date, Tuesday, September 30th. The time is now nine thirty-two AM, and this meeting has come to order before taking roll. I will provide instructions on how to submit a speaker's card for all of the items on this agenda. If you're here with us in chambers and you would like to submit a speaker's card, please fill one out and turn into a clerk representative or myself before the item is ready to record. Speaker cards were due twenty-four hours prior to this prior to the start of this meeting, making that time yesterday at nine thirty AM. This meeting came to order at nine thirty-two. Speaker request will no longer be accepted ten minutes after the meeting has begun, making that not that time nine forty-two. Thank you. Council Member Wong. Thank you. Yes, please. Good morning, everyone. Welcome back to our regular finance committee meeting, sorry, and then we're gonna jump to item eight and then return to the rest of the order. And that's it. Thank you. Thank you. Chair Ramachandra, noting items will go out of order. We'll go in the order for two and three. Then we would take item eight, and then the rest of the agenda will be as ordered. Item one. Because this is special meeting, there are no minutes to be approved. Moving to item two, that is determination to schedule outstanding committee items, and that is also known as your pending list. Nothing at this time, thank you. Okay, I will entertain a motion. I'll move the item. Second. Thank you. That is a motion made by Councilmember Brown, seconded by Councilmember Unger to accept the termination of schedule outstanding committee items as is on roll. Councilmember Brown. Aye. Councilmember Unger. I. Councilmember Wong. Aye. And Chair Ramachandran. Aye. Thank you. We have four ayes. To accept the termination of scheduling outstanding committee items as is. Moving to item three. Oh. Receive an informational report regarding OPD overtime. And you do have two speakers, three speakers for this item, excuse me. Good morning, Chair and members of the committee. Laraja Marshall, the fiscal services manager for the Oakland Police Department.

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