Tomorrow: Council to Vote on Updated Budget

 
 

Tomorrow, June 27th, the City Council will adopt an updated budget for Fiscal Year (FY) 2024 (July 1, 2023 - June 30, 2024). Last year, Council approved a biennial budget for FY 2023 and 2024. The purpose of tomorrow’s vote is to update the budget based on the latest estimates on revenues and expenditures. Under the City Charter, Council must approve a balanced budget before the start of the new fiscal year. While the state of the local economy is strong, we must prepare for a potential reduction of future revenue as a result of a possible slowdown of the global and national economy and a reduction in property sales as a result of very high interest rates. 

Adopting a budget is one of the most important decisions as it determines the city services, programs and projects which will be implemented each year, and is a reflection of the Council and community’s priorities. However, it also means making difficult decisions as there is a finite amount of resources that prevent all our priorities from being funded immediately. Below are highlights of the Mayor’s supplemental budget proposal, which determines the best way to handle the over $42 million in budgetary referrals. However, since the budget that was approved last year was already balanced, there is not $42 million available to fund these proposals. As a result, these referrals have been placed in three separate buckets: Programs that can be funded now, programs that will be referred to the next budget update in November/December, known as the Annual Appropriations Ordinance (AAO), and programs that will be deferred to the next biennial budget that will be adopted in June 2024. You can explore the proposed budget in full by reviewing the documents on the June 27th Council agenda (items 53 and 54).

What is Being Funded Now?

With most funding already committed, we can only prioritize those projects and programs which can be done this next year. Many of the projects listed in the other buckets are unable to go forward at this time because there currently is no staff available to implement or they are not ready to move forward at this time. To be clear, those programs are not being cut, they are simply being postponed to a later date when it is feasible to proceed. As a result, funding is being reprioritized to projects that are ready to move forward in 2024. We are also prioritizing expenditures where the city’s funding can help leverage outside funds. In total, an additional $5 million is being allocated to fund the following:

  • Various measures to support the work of reimagining public safety and advancing social justice, including:

    • Hiring a Police Accountability Investigator to address highly complex misconduct investigations.

    • Supporting implementation of an Early Intervention and Risk Management System to provide necessary data and help in implementing fair and impartial policing policies and public safety reimagining.

    • Development of a Universal Basic Income Pilot, including identifying funding sources, target populations, and program delivery models.

  • Improving Infrastructure, including:

    • Hiring a consultant to help with the development of a Southside Impact Fee Nexus Study, with funds generated by private development to be used for Southside public realm improvements.

    • Community engagement, including polling, for the development of a Complete Streets Parcel Tax or other infrastructure measure as part of Vision 2050, with the goal of a possible measure to be placed on the November 2024 ballot. 

  • Addressing public safety, including:

    • Purchasing marking equipment to engrave identification numbers onto catalytic converters to deter theft and assist with investigations and recovery efforts.

    • Pedestrian safety improvements to Arlington Avenue, the intersections of 6th St/Addison St and MLK Jr Way/Haste St, and the Pedestrian Path Network.

  • Improving access to housing, including:

    • $2 Million dollars for COVID-19 Emergency Rental Assistance to help property owners and tenants cover back rent owed due to the pandemic. 

    • Hiring staff for the implementation of Measure M, the Empty Homes Tax.

    • Continued funding for Anti-Displacement programs.

What is Being Referred to the End of the Year AAO Process?

A mid-year budget update will take place in November through December this year, which presents another opportunity to fund new programs if there is additional funds to do so. This is known as the Annual Appropriations Ordinance (AAO). In total, $7.7 million in projects will be referred to this process. Highlights include:

  • Maintenance for three new public restrooms.

  • Continuing Recruitment programs for Fire and Police. There is enough available funding to keep these programs going to the end of 2023.

  • Expansion of Climate Equity Action Fund for e-bike incentives

  • Creation and maintenance of a pump-out station for recreational vehicles.

  • Pedestrian safety upgrades at Ashby/Acton.

  • Reconstruction of the Dreamland for Kids Playground at Aquatic Park.

What is Being Deferred to the Next Budget Cycle?

The next biennial budget, which will be adopted by the end of June 2024, will cover the city’s budget for FY 2025-2026 (July 1, 2024 - June 30, 2026). Highlights of projects that will be deferred to this cycle include:

  • Various staffing positions, which are unlikely to be filled over the next year regardless of funding.

  • Development of a West Berkeley Transportation Plan and Residential Preferential Parking Program.

  • Expansion of the Revolving Loan Fund.

  • A $4.7 million increase to the street paving budget.

  • Funding the backlog of the 50-50 Sidewalk Repair Program.

  • Bicycle and pedestrian improvements on Russell St.

  • Construction of a bike park at the Waterfront.

I want to thank the City Manager, the Finance Department, and the Office of Budget and Fiscal Management for their efforts to make sure that our budget is balanced despite revenues still rebounding to pre-pandemic levels. I also want to express appreciation to the members of the community who have been involved in the many budget meetings. I value your input on this important process and am committed to receiving your public comment in order to make sure our budget reflects our needs and values.

Jesse Arreguin