Finance and Management Committee Meeting - February 10, 2026

The Oakland City Council Finance and Management Committee met on February 10, 2026, at 9:30 AM. Members present: Councilmembers Brown, Unger, Wong, and Chair Ramachandran (4 members). The committee reviewed five items: approval of prior minutes, a pending list, the Oakland Redevelopment Successor Agency audit, fiscal year 2024-25 fourth quarter audited results, the Annual Comprehensive Financial Report, and a roadmap to fiscal health addressing voter-mandated spending. All items were approved unanimously.

Consent Calendar

• Approval of Minutes (January 27, 2026): Motion by Brown, seconded by Unger, passed 4-0.
• Determination of Scheduled Outstanding Committee Items: Motion by Unger, seconded by Wong, passed 4-0.

Public Comments & Testimony

• Item 4 (Q4 Results): Asada Olabala noted uncollected street vendor permit fees and questioned $490,000 police overtime without documentation. Kevin Daly (Transport Oakland) warned that deferred street paving increases crash-related litigation costs.
• Item 6 (Roadmap to Fiscal Health): Kevin Daly proposed moving crash investigations from OPD to OakDot to reduce overtime and legal settlements. John Bliss (Measure Q co-chair) urged restoring parks funding per voter promises. Brooke Levin (advocate) called for a clear definition of "extreme fiscal necessity" in the consolidated fiscal policy. Catherine Sturbance (Friends of the Oakland Public Library) requested full library MOE funding, calling the current plan aspirational. Fatima Yousaf echoed support for libraries.
• Open Forum: Kevin Daly encouraged attending the public works session. Asada Olabala criticized sanctuary city policies for negatively impacting African American workers economically.

Discussion Items

• Item 3 – ORSA Audit Report: Controller Pooja Shrestha presented the audit for the year ended June 30, 2025. Auditors (MGO) issued an unmodified opinion. As of June 30, 2025, ORSA liabilities exceeded assets by $137.8 million (net deficit), an improvement of $11.8 million from the prior year. Final debt payment is scheduled for 2041. The committee received and filed the report (4-0).
• Item 4 – FY 2024-25 Q4 Audited Results: Finance Director Brad Johnson, Revenue Analyst Jose Segura, and Acting Budget Administrator Rena Stabler reported general purpose fund (GPF) revenues of $815 million ($68 million over budget) and expenditures of $742 million ($47 million under budget), producing an operating surplus of $73 million. The ending GPF fund balance was $16.87 million. One-time items included $24.6 million from the PG&E building sale, $7.5 million from delinquent business tax recovery, and $7.5 million in legal settlements. The city’s mandatory emergency reserve of $73 million (7.5% of GPF appropriations) was met, but the vital services stabilization fund stood at $0. Other funds: Measure HH ended barely positive ($0.1M), affordable housing trust fund negative ($8M), Measure Q positive ($6.5M). Councilmembers questioned fund balance dynamics, parking revenue trends, and OPD overtime reduction. Received and filed (4-0).
• Item 5 – Annual Comprehensive Financial Report (ACFR): Controller Shrestha presented the audited financial statements. The city received a clean opinion. Net position has been positive since fiscal year 2021 and improved further. Unfunded pension and retiree health care (OPEB) liabilities totaled approximately $2 billion. General fund balance increased 44% but 31% reflected an accounting reclassification; the unassigned balance grew 13% from higher revenues and lower expenditures. Total reserves (GPF emergency reserve plus unassigned balance) were $98.4 million, above the 7.5% policy minimum. The vital services stabilization reserve target of 15% of GPF revenues remains unmet ($0 balance). Discussion ensued on reserve policies and long-term obligations. Received and filed (4-0).
• Item 6 – Roadmap to Fiscal Health: Multi-Year Plan for Ballot Measure Compliance: Director Johnson presented a framework addressing a $38.8 million gap in meeting voter-adopted spending mandates (Measure NN $18M, Measure Q $2M, Measures C/D $3M, affordable housing trust fund $6M, democracy dollars $5M, and others). A phased approach was illustrated with scenarios (front-loaded, back-loaded, balanced) over five years. For Measure NN, the plan assumed seven police academies per biennium with 38 recruits each to reach compliance; Councilmember Brown noted that assumption may be optimistic. The report noted key risks: rising PERS/healthcare costs, federal funding uncertainty, and cost inflation. Public speakers expressed concerns about the lack of specificity and urged faster action. Councilmembers discussed park hiring challenges, the affordable housing trust fund deficit, and MOE suspension rules. The committee voted to forward the report to the February 17, 2026 City Council meeting on the consent calendar (motion by Wong, seconded Brown, 4-0).

Key Outcomes

• All five agenda items passed unanimously (4-0) as receive/file or approve.
• Item 6 was forwarded to the full City Council meeting on February 17, 2026, on consent.
• No policy votes were taken; all items were informational.
• Next steps: The mid-cycle budget process will incorporate phased compliance with ballot measures, and the administration will continue engaging with advocates.