Oakland Finance Committee Meeting May 26, 2026: Q3 Report and Investment Policy
Oakland Finance and Management Committee Meeting – May 26, 2026
The Finance and Management Committee met on Tuesday, May 26, 2026, at 9:30 a.m. to discuss fiscal year 2025-26 third quarter revenues and expenditures, adopt the city's investment policy for FY 2026-27, receive the cash management report, and handle routine agenda items. The meeting included public testimony from city workers and residents urging fiscal discipline and fair wages.
Consent Calendar
- Item 1 – Approval of Minutes: The draft minutes from the committee meeting of May 12, 2026, were approved unanimously (4-0).
- Item 2 – Determination of Scheduled Outstanding Committee Items: The pending list was accepted as is (4-0).
Public Comments & Testimony
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Item 3 – Q3 Revenue/Expenditure Report: Multiple speakers from IFPTE Local 21 and Oakland residents addressed the committee. Chase Fowler (Local 21) argued that the administration is not providing cost-of-living adjustments (COLAs) despite rising inflation, and noted that OPD overtime spending is projected to exceed budget by $17 million while civilian workers face a 25% vacancy rate. Noelle (Local 21, Transportation) stated that without COLAs, vacancies and turnover will grow, harming public services. Elliot Goodrich (OakDOT planner) highlighted that every non-police/fire department is under budget, which he said reflects underinvestment in core services, and urged the council to implement city auditor recommendations on the OPOA MOU. Jean Tran (Local 21 resident) linked declining property tax revenue to failing infrastructure and asked for investment in long-term gains. Ruth Meza (Local 21) said OPD overspending has cost the city $236 million since 2008, preventing reserve-building and fair wages. Michael Ford (Local 21) noted an experienced team member left for a 20% pay increase elsewhere, citing the lack of a salary survey since 2017. Kevin Daly (public comment) questioned whether the budget surplus is due to unfilled vacancies, and called for civilianizing parking enforcement dispatch positions.
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Item 5 – Investment Policy: No public speakers appeared.
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Item 6 – Cash Management Report: No public speakers appeared.
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Open Forum: No speakers.
Discussion Items
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Item 3 – Third Quarter Revenue and Expenditure Report (FY 2025-26): Director of Finance Brad Johnson presented the report. Key results: the General Purpose Fund (GPF) is expected to end the year with a positive fund balance of $32.32 million, up $15.45 million from the $16 million beginning balance (excluding carryforwards). An operating deficit of $53 million is projected, primarily due to $55 million in planned carryforwards supported by prior-year revenues. Revenues are $59.9 million (7.1%) below budget, but excluding planned fund balance use, revenues are only $4 million (0.5%) below budget. Property tax growth slowed to 0.8% (third lowest in 30 years), driven by Prop 8 reductions in commercial and multifamily residential properties. Utility consumption tax revenue is flat. Sales tax is 3.5% below FY 2024-25 levels. Expenditures are under budget across most departments, with overspending in a few departments due to one-time bonus adjustments. The city is compliant with reserve policies. Johnson noted ongoing pressures: PERS, healthcare costs, federal uncertainty, Measure E on the June ballot, and negative fund balances in some funds. Councilmember Unger clarified that the contract trigger for civilian COLAs was not met; any raises would be based on current-year revenues above the adopted budget, and Measure E revenues would not count. Councilmember Wong requested future reports include written justifications for departmental overspending.
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Item 5 – Adoption of Investment Policy for FY 2026-27: Max Kumar (Treasury Bureau) presented the annual investment policy. Minor legislative changes extended the 40% portfolio cap on commercial paper and zero-interest rate accrual until January 31, 2027. The current portfolio is in full compliance. The policy covers both the city and successor agency portfolios. The committee forwarded the item to the June 2, 2026 City Council consent agenda.
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Item 6 – Cash Management Report for Q3 FY 2025-26: Max Kumar reported the portfolio quarter-end balance of $2.25 billion, days to maturity of 279 days, yield of 3.65%, daily liquidity at 16.78%, and 180-day liquidity at 60.02%. The portfolio is in compliance with the investment policy. Councilmember Unger asked about seasonality; Kumar explained cash balances rise from December to June due to property tax receipts. Councilmember Wong inquired about increasing yields; Kumar noted differences in portfolio size and liquidity needs, but stated the city attorney is reviewing opportunities for joint powers authority investments.
Key Outcomes
- Item 1: Minutes approved (4-0).
- Item 2: Determination of scheduled items accepted (4-0).
- Item 3: The informational Q3 report was received and filed in committee (4-0).
- Item 5: Resolutions adopting the Investment Policy and delegating investment authority were forwarded to the June 2, 2026 City Council consent agenda (3-0-1, Wong excused).
- Item 6: The cash management report was received and filed in committee (4-0).
- Directives: No formal directives were issued, but Councilmember Wong requested that future variance reports include written justifications for departmental overspending. The administration confirmed no hiring freeze is in place.
Meeting Transcript
Good morning and welcome to the Finance and Management Committee meeting of Tuesday, May 26, 2026. The time is now 9.30 a.m. and this meeting may come to order. Before taking roll, I will provide instructions on how to submit speaker cards for items on this agenda. If you're here with us in chamber and would like to submit a speaker card, please fill one out and turn one into myself or clerk representative no later than 10 minutes after the start of this meeting or before the item is read into record, whichever occurs first. Registering to speak via Zoom is now due 24 hours prior to the start of this meeting time. This meeting came to order at 9:30 a.m. and speaker cards will no longer be accepted 10 minutes after, making that time 9.40 a.m. We'll now proceed with taking roll. Council members Brown. Present. Unger. Here. Wong. Oh, Wong is walking through the door. Councilmember Wong for attendance. Present. Thank you. And Chair Ramachandran. Present. Thank you. We have four members present. Chair, before we begin, do you have any announcements at this time? Um, no, we're gonna keep two minutes per speaker. But if you uh are with a group of people, if you're able to um jointly make comments, um that is that is an available option. Okay, thank you. Starting off with item one approval of the draft minutes from the committee meeting of May twelfth, two thousand twenty-six, and we have no speakers on this item. We just need a motion, second. That was a motion made by Councilmember Brown, seconded by Councilmember Unger to approve the draft minutes from the committee meeting of May 12th, 2026. On roll council members Brown. Aye. Unger. Aye. Wong. Aye. And Chair Ramachandran. Aye. Thank you. Item one passes with four ayes. Reading in item number two, determination of scheduled about standing committee items, and we have no speakers on this item. Anything from staff? Nothing at this time. Thank you. All right, I'll entertain a motion. Move the uh pending list. Second, thank you. That's a motion made by Councilmember Brown, seconded by Councilmember Unger to accept the determination of scheduled outstanding committee items as is. On roll, Council Members Brown. Aye. Unger.
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