A road to recovery in four pages

Oakland charts ambitious, although brief, multi-year path to fiscal health; Recall whispers grows in San Leandro; Metallic balloons ban coming to Alameda?; County supe slams One Big Beautiful Bill

☕️MORNING BUZZ

—Facing persistent financial woes, Oakland leaders will unveil an 11-point “Roadmap to Fiscal Health” this morning—a multi-year strategy aimed at restoring the city’s financial stability and long-term resilience.

The proposed strategy, to be unveiled at this morning’s Oakland City Council Finance and Management Committee, is hardly sweeping, at just less than four full pages.

The plan, penned by the city administrator’s office, though, could represents a shift from short-term budget fixes to meaningful structural reform. The goal is to build a city government that can sustainably deliver services, support its workforce, and withstand future economic turmoil.

Step 1: Form a “Fiscal Health Executive Team” to oversee and coordinate implementation across departments.

The effort builds on the recently adopted two-year budget. A key component of the plan is a proposed $40 million annual tax measure, tentatively slated for the June 2026 ballot. Details, though, are not expected until early next year.

—Among Oakland’s most pressing challenges are rising pension costs, which are projected to increase by $70 million by 2031. Without action, annual deficits are likely through at least 2032.

The roadmap calls for a review of options, including debt restructuring and new amortization schedules by March 2026.

Employee healthcare costs are another long-term concern, according to the roadmap. Oakland’s cost-sharing arrangements exceed those of many similar-sized cities, and future labor negotiations may seek to curb growth while maintaining care quality.

The plan also warns of the rising potential for state and federal funding losses, which could threaten key services. A contingency strategy to address these risks, including potential program cuts and coordination with county and school district services, is due by mid-2026.

Aging facilities, vehicles, and technology systems are deteriorating faster than they are being repaired, the roadmap identified. The City Administrator is expected to propose 10-year capital investment plans by late 2026.

The roadmap calls for improving tax and fee enforcement, hiring staff to recover delinquent payments, modernizing outdated systems, and reforming its contracting processes and creating a performance management program to track department and contractor outcomes.

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—More inside:

• Recall threat looms over San Leandro councilmembers after lawsuit alleging misconduct and corruption, FBI probe.

• If a settlement is reached, how much might San Leandro’s former city manager net? There’s some parallels to a similar, but long ago case in Alameda.

• Alameda is considering a Mylar balloon ban amid environmental and safety concerns.

• Funding for immigration enforcement in the “One Big Beautiful Bill” sparks alarm from an Alameda County supervisor; new Castro Valley MAC member named.
  

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