Title
Workshop to Discuss City of Alameda's Fiscal Sustainability Including Reviewing the Current Financial Status of the City Budget, and Seeking Feedback on Future Revenue Measure Opportunities, an Improved Collections Process and a Draft Budget and Financial Accountability Policy. (City Manager)
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To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
As discussed as part of the recent adoption of the Fiscal Year (FY) 2025-27 Biennial Budget, City of Alameda (City) staff are monitoring carefully the current financial status of the City and returning to the City Council to provide an update on the City's budget, as well as to seek input from the City Council on opportunities to increase revenues, and plan for greater fiscal sustainability. In particular, this staff report seeks Council direction on exploring a revenue measure opportunity, implementing an improved and more equitable collection process to increase revenues, as well as adopting a draft budget policy that helps ensure long-term fiscal accountability.
BACKGROUND
The City Council adopted the Biennial Budget for FYs 2025-27 on June 17, 2025, which incorporates direction received during two budget workshops in May. The budget establishes the financial framework for City operations, with the General Fund, the main operating fund, accounting for 42% ($152.2 million) of the total budget ($361.2 million) in FY 2025-26 and 43% ($153.8 million) of the total budget ($358.3 million) in FY 2026-27. The City's budget funds 514 full time equivalent positions (FTEs) in 2025-26 and 515 FTEs in 2026-2027, excluding Alameda Municipal Power (AMP) positions.
Due primarily to uncertain economic conditions and increased programmatic and other expenses over the last several years, the City's adopted Biennial Budget estimates using revenues to cover 96.5% of ongoing expenses, resulting in a budget shortfall of 3.5% of operating expenses. In response to this con...
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