Expenditures By Type
FY 2023-25 PROPOSED POLICY BUDGET
SUMMARY OF EXPENDITURE TYPES
In this section is a detailed discussion of the individual categories that comprise expenditures. For each category, a brief description is provided, followed by relevant analysis, and key forecast assumptions.
Personnel & Overhead Expenditures
Salaries
The budget includes assumptions related to salaries for sworn and civilian personnel that are consistent with the City's memoranda of understanding with its bargaining units. The budget includes Cost of Living Adjustments (COLA) for sworn police personnel that were agreed to in the Memorandum of Understanding (MOU) reached with the Oakland Police Officer's Association (OPOA) and Oakland Police Management Association (OPMA), COLA for sworn fire personnel in FY 2019-20 per the MOU with the Local 55, and COLAs for all of the City's civilian units includin SIEU 1021, IFPTE Local 21, iBEW Local 1245, and the CMEA.
Fringe Benefits
Civilian and sworn fringe benefit expenditures are comprised of many components, including health insurance, workers’ compensation, dental and vision insurance, disability insurance, unemployment insurance, and others. Cost sharing between employer and employee on fringe benefits is also a bargained arrangement. The budget assumes that the arrangement currently in place would continue (e.g., the City fully pays the equivalent of the Kaiser health insurance premiums).
Retirement
Projected future pension rates for active employees are based on estimates provided by the California Public Employees Retirement System (CalPERS), the City’s retirement program administrator.
Non-Personnel Expenditures
Operations and Maintenance
Operations and maintenance (O&M) expenditures include the costs of supplies, contract service, travel, and internal service charges. O&M expenditures are generally budgeted at prior year levels unless specific policy interventions occur. With the exception of internal service charges, O&M funding may be moved between expenditure categories by Departments with the fiscal year to meet operational needs.
Capital, Debt & Other, and Transfers
Debt service expenditures are budgeted based on the repayment schedule of the City’s current debt maintained by the City’s Treasury Bureau. Debt service includes principal and interest expenses on bonds and other loans. Capital expenditures include the budgeted costs for the design and delivery of Capital improvements such as streets, sewers, and buildings. Capital expenditures are budgeted based upon available capital funding and operational needs. Other expenditures include transfers between funds, overhead charges and recoveries, repayments to negative funds, and contributions to long-term obligations.