FIRST 5 ALAMEDA COUNTY EXECUTIVE COMMITTEE MEETING AGENDA
Thursday, May 29, 2025
First 5 Alameda County 11:00 AM – 12:30 PM 1115 Atlantic Avenue Alameda, CA 94501
Members of the public may access the meeting via Conference Room E Zoom Meeting ID: 897 3847 1520 Passcode: 522611
Commissioners:
Chair: Cecilia Oregón, Vice Chair: Tomás A. Magaña M.D., Supervisor Nikki Fortunato Bas
1. Public Comment
This portion of the meeting is reserved for persons desiring to address the Executive Committee on any matter not on the agenda. Speakers are limited to three minutes except as otherwise ordered by the Vice Chair
2. Receive Staff Announcements
a. General Staff Announcements
b. CEO Contract Authorizations
3. Approve Executive Committee Meeting Minutes
a. Executive Committee Meeting Minutes December 5, 2024
b. Executive Committee Meeting Minutes April 17, 2025
Recommended Action: Approve Executive Committee Meeting Minutes from December 5, 2024 and April 17, 2025
4. Approve Fiscal Year 2024-25 Contract Authorization
Recommended Action: Approve the Fiscal Year 2024-25 Contract Authorization
5. Review and Recommend Fiscal Year 2025-27 Proposed Budget and Fiscal Year 2025-35 Proposed Long Range Financial Plan
Recommended Actions: Recommend that the Commission approve the following:
a. Fiscal Year 2025-27 Proposed Budget
b. Fiscal Year 2025-35 Proposed Long Range Financial Plan
c. Fiscal Year 2025-27 Contract Authorizations
6. Review and Recommend the GASB 54 Fund Balance Commitment
Recommended Action: Recommend that the Commission approve the GASB 54 Fund Balance Commitment
Executive Committee Meeting Agenda May 29, 2025
Information about access:
Please contact Julia Otani at julia.otani@first5alameda.org or (510) 227- 6987 ten business days in advance if you need special assistance or translation/interpretation support so we can make reasonable arrangements to ensure accessibility. We will swiftly resolve any requests for accommodation to resolve any doubt whatsoever in favor of accessibility.
7. Review and Recommend the Fiscal Year 2025-26 ACERA 401(h) Account Authorization
Recommended Action: Recommend that the Commission approve the Resolution to fund the Fiscal Year 2025-26 ACERA 401(h) Account Authorization
8. Adjournment
Executive Committee Meeting Agenda May 29, 2025 Information about access:
Please contact Julia Otani at julia.otani@first5alameda.org or (510) 227- 6987 ten business days in advance if you need special assistance or translation/interpretation support so we can make reasonable arrangements to ensure accessibility. We will swiftly resolve any requests for accommodation to resolve any doubt whatsoever in favor of accessibility.
First 5 Alameda County Executive Committee Meeting
December 5, 2024, 11:00 AM - 12:30 PM Zoom Webinar Meeting ID: 815 3890 6041
Commissioners Present: Chair: Renee Herzfeld, Tomás A. Magaña, M.D
Commissioners Not Present: Vice Chair: Cecilia Oregón
First 5 Staff Present: Kristin Spanos, Cally Martin, Vanessa Cedeño Geisner, Nick Zhou, Christine Hom, Detra Teal
DISCUSSION HIGHLIGHTS
The meeting was called to order by Chair Herzfeld who gaveled in at 11:11 AM and stated that the meeting was being recorded. Commissioners Herzfeld and Magaña stated their names to indicate they were present for the meeting.
There was one Public Comment by Daniel Johnson.
a. General Staff Announcements
b. CEO Contract Authorizations
No Staff Announcements were provided and the two CEO contract authorizations were provided as written updates.
3. APPROVE EXECUTIVE COMMITTEE MINUTES FROM JUNE 11, 2024
R. Herzfeld
Chair Herzfeld asked if there was any public comment before taking a vote to approve.
Chair Herzfeld facilitated the vote to approve the June 11, 2024 Executive Committee Meeting minutes. [Attachment]
4. ADOPT THE 2025 EXECUTIVE COMMITTEE FINAL CALENDAR
R. Herzfeld [Attachment]
Chair Herzfeld asked if there was any public comment before taking a vote to adopt. [Attachment]
Chair Herzfeld facilitated the vote to adopt the 2025 Executive Committee Final Calendar.
Motion: Tomás Magaña
Second: Renee Herzfeld
No Abstentions.
Motion passed.
Motion: Tomás Magaña
Second: Renee Herzfeld
No Abstentions.
Motion passed.
Mr. Zhou presented the revisions to the Financial Policies and Ms. Hom presented the revisions to the Technology Policies.
Chair Herzfeld asked if there was any public comment before taking a vote to approve.
Chair Herzfeld facilitated the vote to approve the revisions to the Governance Policies.
[Attachment] [Attachment]
Mr. Zhou presented the Fiscal Year 2024-25 Contract Authorizations.
Chair Herzfeld asked if there was any public comment before taking a vote to approve.
Chair Herzfeld facilitated the vote to approve the Fiscal Year 2024-25 Contract Authorizations.
[Attachment]
Mr. Zhou presented the Fiscal Year 2024-25 Contract Authorization.
Chair Herzfeld asked if there was any public comment before taking a vote to recommend.
Chair Herzfeld facilitated the vote to recommend that the Fiscal Year 2024-25 Contract Authorization be brought to the Commission for approval.
[Attachment]
Mr. Zhou presented the Cost of Living Adjustment (COLA) Recommendation.
Chair Herzfeld asked if there was any public comment before taking a vote to recommend.
Chair Herzfeld facilitated the vote to recommend that the Cost of Living Adjustment (COLA) Recommendation be brought to the Commission for approval.
Motion: Tomás Magaña
Second: Renee Herzfeld
No Abstentions.
Motion passed.
None
Motion: Tomás Magaña
Second: Renee Herzfeld
No Abstentions.
Motion passed.
Motion: Tomás Magaña
Second: Renee Herzfeld No Abstentions.
Motion passed.
None
Motion: Tomás Magaña
Second: Renee Herzfeld
No Abstentions.
Motion passed.
The Fiscal Year 2024-25 Contract Authorization will be brought to the Commission for approval.
The Cost of Living Adjustment (COLA) Recommendation will be brought to the Commission for approval.
Ms. Teal presented the revisions to the Employee Handbook.
Chair Herzfeld asked if there was any public comment before taking a vote to approve.
Chair Herzfeld facilitated the vote to approve the revisions to the Employee Handbook. [Attachment]
Chair Herzfeld gaveled out, and adjourned the meeting at 11:33 AM.
Motion: Tomás Magaña
Second: Renee Herzfeld No Abstentions.
Motion passed.
None
First 5 Alameda County Executive Committee Meeting April 17, 2025, 11:00 AM - 12:30 PM Zoom Webinar Meeting ID: 897 4715 7647
Commissioners Not Present: Vice Chair: Tomás A. Magaña, M.D
Commissioners Present: Chair: Cecilia Oregón, Supervisor Fortunato Bas [Attachment] [Attachment]
First 5 Staff Present: Kristin Spanos, Cally Martin, Vanessa Cedeño, Steve Spiker, Detra Teal, Nick Zhou
DISCUSSION HIGHLIGHTS
The meeting was called to order by Chair Oregón who gaveled in at 11:13 AM and stated that the meeting was being recorded. Commissioners Oregón and Fortunato Bas stated their names to indicate they were present for the meeting.
There was no Public Comment.
a. General Staff Announcements
b. Legislation and Public Policy Updates
c. CEO Contract Authorizations
Ms. Spanos presented the General Staff Announcements. Ms. Cedeño Geisner presented the Legislation and Public Policy Updates. The three CEO contract authorizations were provided as a written update.
Chair Oregón stated that the approval of the Executive Committee Minutes from December 5, 2024 will be moved to an upcoming meeting.
Ms. Teal presented the revisions to First 5 Employee Handbook.
Chair Oregón asked if there was any public comment before taking a vote to approve.
Chair Oregón facilitated the vote to approve the revisions to the First 5 Employee Handbook. [Attachment]
Motion: Supervisor Fortunato Bas
Second: Cecilia Oregón No Abstentions.
Motion passed.
The approval of the Executive Committee Meeting Minutes from December 5, 2024 will be moved to the next meeting agenda.
None
AGENDA ITEM SPEAKER
Mr. Zhou presented the Fiscal Year 2024-25 Contract Authorization.
Chair Oregón asked if there was any public comment before taking a vote to approve.
Chair Oregón facilitated the vote to approve the Fiscal Year 2024-25 Contract Authorization.
Motion passed. DISCUSSION HIGHLIGHTS [Attachment]
[Attachment]
Mr. Zhou presented the Fiscal Year 2024-25 Contract Authorizations.
Chair Oregón requested that Contract Authorizations memo be revised with additional background information on the contracts.
Chair Oregón asked if there was any public comment before taking a vote to recommend.
Chair Oregón facilitated the vote to recommend that the Fiscal Year 2024-25 Contract Authorizations be brought to the Commission for approval.
Motion: Supervisor
Fortunato Bas
Second: Cecilia Oregón No Abstentions.
None
Motion: Supervisor
Fortunato Bas
Second: Cecilia Oregón No Abstentions.
Motion passed.
The Fiscal Year 2024-25 Contract Authorization memo will be revised with the requested information and brought to the Commission for approval.
Chair Oregón gaveled out, and adjourned the meeting at 12:13 PM.
Submitted by: Julia Otani, Executive Assistant
None
None
To:First5AlamedaExecutiveCommittee
From:KristinSpanos,ChiefExecutiveOfficer
CallyMartin,DeputyChiefExecutiveOfficer
NickZhou,ChiefFinancialOfficer
MariaCanteros,SeniorAdministrator,Finance
Date:May29,2025
Subject:FiscalYear2024-25ExecutiveCommitteeContractAuthorization
REQUESTEDACTION
ToreviewandapprovethefollowingFiscalYear(FY)2024-25contractauthorization.
BACKGROUND
PerourFinancialPolicies,SectionIX.PurchasingandContracting,theExecutiveCommittee mustapprovecontract/awardamountsbetween$200,000and$299,999inaggregate.The followingawardrequiresspecificauthorizationfromtheExecutiveCommittee.
Exygy-$20,000
OnApril17,2025,theExecutiveCommitteeapprovedacontractaugmentationintheamountof $70,000toacontractwithExygy.ThememoincorrectlystatedtheoriginalExygyawardamountat $200,000;thecorrectawardamountwas$220,000.Tocorrectthiserror,First5isrequesting approvalofaFY2024-25$20,000contractamendmentwithExygyforthescopeoutlinedinthe April2025actionforthecontinueddesign,development,build,andlaunchoftheMeasureCEarly CareandEducation(ECE)EmergencyGrantsapplication.Theextendedscopecoversnew features,newfunctionalitytofacilitateprocessingofapplications,andotherchangesbasedon feedbackfromtheBetatestingcohort.
FiscalImpact:Fundingisbudgeted.
ActionRequested:ApproveanaggregateFY2024-25awardamountof$290,000forExygy.
1115AtlanticAvenue,Alameda,CA94501
p:510.227-6900f:510.227-6901www.first5alameda.org
RECOMMENDATION
ThattheExecutiveCommitteeapprovetheabovecontractauthorization.
Submittedby:
Reviewedby:
NickZhou CallyMartin ChiefFinancialOfficer DeputyChiefExecutiveOfficer
Approvedby:
MariaCanteros
KristinSpanos SeniorAdministrator,Finance ChiefExecutiveOfficer
To:First5AlamedaCountyExecutiveCommittee
From:KristinSpanos,ChiefExecutiveOfficer
CallyMartin,DeputyChiefExecutiveOfficer
NickZhou,ChiefFinancialOfficer
MariaCanteros,SeniorAdministrator,Finance
Date:May29,2025
Subject:FiscalYear2025-27ProposedBudget
ACTIONREQUESTED
Toreview,discuss,andprovidefeedbackonthefollowingFiscalYear2025-27Proposed Budget.
BACKGROUND
EachFirst5CommissionisrequiredbystatutetoadoptaStrategicPlanthatoutlinestheuseof tobaccotaxfundstoservechildrenaged0-5andtheirfamilies.TheFirst5AlamedaCounty Commissionhasapprovedafive-yearStrategicPlanforFiscalYear(FY)2022-27.Thisbudget proposalcoversthefourthandfifthyearoftheplan,FY2025-26andFY2026-27.First5 Alamedastaffisrequestingapprovalinprincipleofthesecondyearofthebudget(FY2026-27) attheidenticalrevenueandexpenseamountsofFY2025-26toenabletheagencytoengagein two-yearawardsthatspanFY2025-27.TheMeasureCbudgetforFY2026-27willalignwiththe Five-YearPlanandthefullFY2026-27budgetwillbebroughttotheCommissionfor considerationnextyear.
ThispresentationisthereadingoftheproposedFY2025-27budget.Inaddition,thelistof proposedFY2025-27contractswillbepresentedinconjunctionwiththeproposedbudget.
AsisthepracticeofFirst5AlamedaCounty,changesthatoccurduringthefiscalyearwillbe formallyincorporatedintothebudgetduringtheMid-YearBudgetModificationinFebruary2026.
CURRENTBUDGETPROPOSAL
Thisdocumentprovidesafiscalsummaryofrevenueprojectionsandbudgetedexpenditureas follows:
ThefollowingRevenueandExpenseprojectionsreflecttheprioritiesoftheFY2022-27Strategic PlanthatwasapprovedbytheCommissioninJune2022. REVENUEANDAVAILABLEFUNDSFORFY2025-26
RevenuesforFY2025-26areprojectedtobe$252.6million.
$9,266,802
Thetobaccotaxrevenueprojection(Prop10, Prop56andtheCaliforniaElectronicCigarette ExciseTax)isbasedonCaliforniaDepartmentof FinanceandFirst5Californiaprojectionsfor countycommissions.Tobaccotaxesare projectionsupdatedinSeptember2024and reflectthedecreasedrevenueduetothepassing oftheProp31FlavoredTobaccoBan. MeasureAAParcelTax
$44,726,586CityofOaklandMeasureAAparceltaxfunding fortheOaklandChildren'sInitiative. MeasureCSalesTax
$189,703,134AlamedaCountyMeasureCsalestaxfundingfor theC
$851,803
OtherLocal(Interagency)Income
$2,826,725
FundingincludestheIMPACTLegacygrantto supportlocalQRISworkandfundingforthe IMPACTLocalRegionalTrainingandTechnical AssistanceHubfromFirst5CaliforniaviaFirst5 SanBenito.
FundingincludescontractswithAlamedaCounty Health(acombinedcontributionfromAlameda CountyHealth,SocialServicesAgency, ProbationDepartment,andChildSupport Services)tosupportFathersCorpwork;funding fromtheAlamedaCountyOfficeofEducation/CA StateBlockGrantforprojectedmoniesforthe QRISgrant;fundingfromAlamedaCountyPublic HealthDepartmentforsharedECChange maintenanceandhostingcosts;fundingfrom AlamedaCountySocialServicesAgencyfor workforcedevelopmentactivities,EarlyID activities,andprojectedmoniesfromthe CaliforniaDepartmentofSocialServicesfor QualityCountsCaliforniaQRISBlockGrant.
$1,914,725
FiscalLeveraging
$3,026,216
FundingfromSunlightGivingforgeneral operatingsupport;AlamedaAllianceforHealth, ChildFamily&CommunityServicesfundingto supportParentEngagementactivities,HeisingSimonsFoundation,KaiserPermanente Foundation,KresgeFoundation,andsmaller grantstosupportFatherhoodSummitactivities.
ProjectedfundingforMedi-CalAdministrative Activities(MAA);estimatesarebasedonMAA invoicessubmittedinFY2024-25. OtherIncome
$298,181
TotalRevenue
Projectedincomefrominvestmentinterestand dividendearnings.
$252,614,172TobaccoTax,OtherFirst5Income,Interagency Income,Grants,FiscalLeveragingandOther Income.
EXPENDITURESFORFY2025-26
IntheFY2022-27StrategicPlanplannedactivitiesarecategorizedundertenmajorstrategies:
PROGRAMSSTRATEGIES:
PediatricCareCoordination(formerlyEarlyIdentification,ScreeningandCare Coordination)
ParentPartnership
NeighborhoodsReadyforSchool
Fatherhood
EarlyCareandEducation
AGENCYSTRATEGIES:
DataandEvaluation
PolicyandAdvocacy
Training Communications
OPERATIONALSUPPORTSTRATEGY(Technology,Planning,Finance,HumanResources, Administration&Facilities)
ThefollowingExpenseproposalprovidesthecostforeachofthetenstrategiesdetailedinthe StrategicPlanandanadditionalagencybudgetstrategyforthe .
TheprogramstrategyexpenditurespresentedbelowconsistofSalariesandBenefits,Program relatedContracts,Grants,Stipends,ProfessionalServicescostsandProgramOperatingcosts. OperationalSupportStrategiesincludeFinance,HumanResources,Technology,Planning, AdministrationandFacilitiescosts.Indirectagencyinfrastructurecostsarereflectedinthe
OperationalSupportStrategiesbudgets.ThebudgetnarrativeprovidesdetailoneachStrategy andistobereadinconjunctionwiththeStrategicPlan.
ConsistentwithlegislativerequirementsbroughtaboutbyAB109,expensecostscontinuetobe separatedintothreecategories:Program,Evaluation,andAdministration.Theexpensesineach categoryareconsistentwithFirst5Californiaguidelines,andthosesetforthintheGovernment
AdministrativeCostAnalysis
First5AlamedaCountyhasimplementedthenewAdministrativeCostPolicy,approvedbythe ExecutiveCommitteeonFebruary8,2024.Thisrevisionalignswiththerequirementssetforthby AB109andSB35,andadherestotheFirst5FinancialManagementGuide,ensuring compliancewithstateregulations.Movingawayfromafixedcap,thepolicynowincorporatesa detailedanalysisofourindirectcosts,conductedannually.Thisprocessallowsustodeterminea morepreciseallocationforadministrativeexpenses.Forthefiscalyear2025-26,thisrefined approachhasresultedinanadministrativecostallocationof15%.Thismodificationinourpolicy ensuresthatourbudgetingisbothresponsibleandreflectiveofouroperationalcostsandneeds, supportingourongoingcommitmenttoservingthechildrenandfamiliesofAlamedaCounty moreefficiently.
FY2025-26COSTS
Theproposedbudgetamountsinthefollowingsectionrepresentthedirectcostsassociatedwith eachstrategybeforeanyadjustmentsforindirectcosts.
SalariesandBenefits
ForFY2025-26,totalsalariesandbenefitsareprojectedtobe$30,524,722.Salariesare budgetedbasedonactualamounts.Benefitsarebudgetedat54%ofsalaries.Consistentwith directionfromtheCommission,theapprovedbenefitpackageremainedmostlyconsistentwith theCountyofAlameda,includingmembershipintheAlameda Association(ACERA).The54%allocationisbasedonactualcostestimatesthatarerevised periodicallyasneeded.
ThePediatricCareCoordinationbudgetproposalforFY2025-26is$4,350,033andconsists of: FY2025-26
$4,350,033TobaccoTax Medi-Cal Administrative Activities(MAA) AlamedaCounty SocialServices Agency
AlamedaAlliancefor Health
Connectchildrenandfamiliestopreventive care,childdevelopmentresources,early interventionandcommunitysupports,and helpfamiliesnavigateacomplexsystemof serviceproviders,ensuringequitable accesstohealthandsocialresources Broadenscreeningeffortsinalignmentwith HelpMeGrow(HMG)StrategicPlan includingenhancingscreeningtechnology andpurchaseofAges&Stages Questionnaire(ASQ)kits ContinuesupportforHMGPediatricCare ContinueprogrammingforProjectDULCE Continuetoexplorelocalsystem integrationandexpansionwithmanaged careplans,healthcare,andsocialservices agencies
TheParentPartnershipstrategybudgetproposalforFY2025-26is$3,283,382andconsistsof:
$3,283,382TobaccoTax Medi-Cal Administrative Activities(MAA) ChildFamily& CommunityServices
ContinuesupportofFamilyNavigation services
Continuesupportofparentfocused servicesprioritizingchildrenages0-3 yearswithcommunitypartnersandparent leaderstoinformprogrammingand investments
TheNeighborhoodsReadyforSchoolstrategybudgetproposalforFY2025-26is $3,482,597andconsistsof:
$3,482,597TobaccoTax Medi-Cal Administrative Activities(MAA) MeasureCSales Tax
Continuesupportofprogramsandservices intheCastlemontCorridorandtoconduct neighborhoodoutreachandfamily engagementactivities
Continueimplementationofplace-based investmentsinWestandEastOakland, Fruitvale/SanAntonioOakland neighborhoods,andUnionCity
TheFatherhoodstrategybudgetproposalforFY2025-26is$1,154,616andconsistsof:
FY2025-26 PROPOSED AMOUNT
$1,154,616TobaccoTax Medi-Cal Administrative Activities(MAA)
AlamedaCounty Health PrivateFoundation Grants
ContinueincorporatingFatherFriendly Principlesintoadditionalprogramsand communityinitiatives
ContinueFatherFriendlyPrinciples awareness,adoption,implementation,and capacitybuildingcampaigntopublic systemsandCBOs
ImplementFatherhoodInteragency Workgroup
Supportforthebi-annualFatherhood Summit
SupportforthePrenatalBlackFathers Grouppilotprogram
TheEarlyCareandEducationstrategybudgetproposalforFY2025-26is$160,595,078and consistsof:
FY2025-26 PROPOSED AMOUNT
$160,595,078MeasureCSales Tax TobaccoTax Medi-Cal Administrative Activities(MAA) First5SanBenito AlamedaCounty OfficeofEducation AlamedaCounty SocialServices Agency California Departmentof SocialServices
ImplementYearOneofMeasureCFiveYearProgramPlan
EnhancingChild-CenteredSpaces (Facilities,CommunitySpacesand programming)
IncreasingAccesstoChildCare(Family ResourceCenters,Inclusive Environments,SubsidizedCare)
Recruiting,RetainingandSupporting EarlyEducators(ECEEmergency Grants,WorkforceandProfessional Development)
ContinuetoimplementQualityRatingand ImprovementSystem(QRIS)
Continuetosupporttrainings,playgroups andprovidestipendsforFamily,Friend andNeighborprovidersandFamilyChild Caresites
Continuesupportforsustainableadvising andprofessionaldevelopmentin institutionsofhighereducation
TheDataandEvaluationstrategybudgetproposalforFY2025-26is$6,640,967andconsists of: FY2025-26
$6,640,967
MeasureCSales Tax IndirectRevenue
ContinuetosupportevaluationsofECE WorkforceactivitiesandMeasureC programming
PlanningandimplementationofEarly DevelopmentInstrument(EDI)tool Continuedevelopmentofdatadashboard, performancemonitoringandanalysisfor eachFirst5programstrategyinalignment withresults-basedaccountability
ThePolicyandAdvocacystrategybudgetproposalforFY2025-26is$2,401,534andconsists of: FY2025-26
$2,401,534TobaccoTax Medi-Cal Administrative Activities(MAA)
Continuefocusonlocalpolicyandsystems changestoresultintheinstitutionalizationof theworkthatbeganatFirst5 ContributetoFirst5Associationpolicywork Continuedevelopinganannualpolicy platformforlocaleffortsalignedwithFirst5 programsandprioritiesaroundschool readiness,childdevelopment,family supports,andchildfriendlyneighborhoods ContinuecoordinationoftheMeasureC CommunityAdvisoryCouncil(CAC) activities
ContinuesupportofAlamedaCountyEarly ChildhoodPolicyCommitteeactivities
TheTrainingstrategybudgetproposalforFY2025-26is$1,165,168andconsistsof:
$1,165,168TobaccoTax Medi-Cal Administrative Activities(MAA)
MeasureCSales Tax
Continuetoprovidetrainingonbestand promisingpractices,andpeerlearning communitiesforthemulti-disciplinary workforceservingfamilieswithyoung children
Developcurriculumandcapacitybuilding toolsconnectingtrainingstoworkforce development,parentengagement,and place-basedstrategies
SupportforParentEngagementtrainings Supporttrainingforstaffdevelopment program
TheCommunicationsstrategybudgetproposalforFY2025-26is$2,211,864andconsistsof:
FY2025-26 PROPOSED AMOUNT
$2,211,864
MeasureCSales Tax
Heising-Simons Foundation
IndirectRevenue
Launchapublicawarenesscampaignfor MeasureC
DevelopMeasureCcommunicationsand outreachcampaignsinsupportof implementationstrategiesandactivities
Continuedevelopmentofdissemination strategyforFirst5reportsandinformation
Continuedevelopmentofsocialmedia strategy
Developmulti-yearcampaignthat connectswithpolicyplatform,parent engagement,andeducationonchild development
Developcollateralmaterialsregarding impactsofFirst5investmentstopromote sustainabilityandscale
TheOperationalSupport(Finance,HumanResources,Technology,Planning, AdministrationandFacilities)strategybudgetproposalforFY2025-26is$26,651,902and consistsof:
OPERATIONALSUPPORTSTRATEGY
FY2025-26
$26,651,902
MeasureCSales Tax
SunlightGiving Foundation
AlamedaCounty PublicHealth Department
AlamedaCounty SocialServices Agency
IndirectRevenue
IncludesAdministration,Technology, Finance,HumanResources,Commission, Planning,FacilitiesManagementand consolidatedoperatingcoststosupport agencyoperationsandadministrationof MeasuresCandAA.
Expandandupdatedatasystemstobuild capacityforcrossdatasystemsexchange ofinformationincludingtheenhancement ofinternaldatabases,expansionofdata systemagilityandresponsiveness, improvedperformanceandproductivity, updateofelectronicdatasharing confidentialityandprivacypractices ContinuedesignofaCoordinated EligibilityandEnrollmentSystem Includesagencywideinfrastructurecosts ofinsurance,memberships/dues, professionalservices,utilities,janitorial, andmaintenance
InadditiontothetenstrategiesintheStrategicPlan,theOakland strategy budgetproposalforFY2025-26is$40,677,031andconsistsof: FY2025-26 PROPOSED AMOUNT FUNDINGSOURCESPROPOSEDACTIVITIES
$40,677,031CityofOakland MeasureAAParcel Tax
ContinueasImplementationPartnerfor EducationFund
ContinueinvestmentsforOakland UnifiedSchoolDistrictandCityof OaklandHeadStartforservice expansion,familysupport,andcapacitybuildingtobenefitlow-income3-and4year-oldchildreninOakland
FISCALIMPACT
Thefiscalimpactis$252,614,172inbudgetedexpenses,whichwillbefundedbyacombination ofProp10,MeasureC,MeasureAA,andotherrevenuesources.
RECOMMENDATION
ThattheExecutiveCommitteerecommendtheCommissionapprovetheFiscalYear2025-27 ProposedBudget.
Submittedby:
NickZhou
Reviewedby:
CallyMartin ChiefFinancialOfficer DeputyChiefExecutiveOfficer
Approvedby:
MariaCanteros KristinSpanos SeniorAdministrator,Finance ChiefExecutiveOfficer
Footnotes: (1)
1 Prop 10 Tobacco Tax revenue for Alameda County has been updated to reflect the projected decrease provided by the State in September 2024.
2 The City of Oakland's Parcel Tax revenue has been updated to reflect the FY 2025-26 proposed activities for the Oakland Children's Initiative.
3 Measure C Sales Tax revenue as been added to reflect the FY 2025-26 Annual Expenditure Plan.
4 Revenue has been updated for contracts amounts from: First 5 San Benito, Alameda County Health Care Services Agency, Alameda County Office of Education, and California Department of Social Services.
5 One-time funding, not renewed for FY 2025-26 from: Alameda County Social Services Agency, First 5 San Benito, Hellman Foundation, Stupski Foundation,
6 Revenue from Kaiser Foundation (for Fatherhood programming) and Heising Simons Foundation (for Measure C implementation activities) received in FY 2024-25 for planned FY 2025-26 activities.
7 Revenue from the Kresge Foundation, First 5 California, California Wellness Foundation and Heising Simons received un FY 202425 as sponsors of the Fatherhood Summit, scheduled for September 2025.
8 Projected funding for Medi-Cal Administrative Activities (MAA); estimates are based on MAA invoices submitted in FY 2024-25.
First 5 Alameda County
Proposed Budget by Expenditure Category
July 1, 2025 - June 30, 2026
Notes:
FY 2025-26 proposed expenditure budget categories (personnel, contracts and grants, program operating costs, and infrastructure costs) show an increase due to the inclusion of Measure C activities across strategies.
To:First5AlamedaCountyExecutiveCommittee
From:KristinSpanos,ChiefExecutiveOfficer
CallyMartin,DeputyChiefExecutiveOfficer
NickZhou,ChiefFinancialOfficer
MariaCanteros,SeniorAdministrator,Finance
Date:May29,2025
Subject:FiscalYear2025-2035LongRangeFinancialPlan
ACTIONREQUESTED
ToreviewthefollowingFiscalYear(FY)2025-2035LongRangeFinancialPlan.
BACKGROUND
First5AlamedaCountyhasadoptedaLong-RangeFinancialPlan(LRFP)annuallysince March2004.AdoptionofaLong-RangeFinancialPlanhasbeenastatutoryrequirementofall First5Commissionssince2006-07.ThecurrentLRFPwasformallyapprovedbythe CommissioninJune2024.AnupdatetotheLRFPisincludedwithunderlyingassumptionsas wellashistoricalbackgroundinformation.TheupdatereflectstheProposedBudgetforFY 2025-26andthemostrecentTobaccoTaxrevenueforecastfromtheCaliforniaDepartmentof FinanceandFirst5CaliforniaasofSeptember2024.
MINIMUMFUNDBALANCEREQUIREMENTS
Historically,thepolicyrequiredmaintainingaminimumfundbalanceequaltosixmonthsofProp 10operatingexpenses,plusanamounttocoverfiscalobligationsundertheReductionin WorkforcePolicy.However,inlightofMeasureCimplementationplanning,theCommission approvedatemporarysuspensionofthissix-monthminimumrequirementeffectiveOctober3, 2024.ThissuspensionwillremaininplaceuntilthereceiptofMeasureCfunds,whichis anticipatedtobereleasedshortlyafterthepresentationoftheChildCare,Preschool,andEarly EducationFive-YearProgramPlanandBudgettotheAlamedaCountyBoardofSupervisorsin mid-June2025.UponreceiptofMeasureCfunds,includingtheProposition10payback,thesixmonthminimumbalancepolicywillbeautomaticallyreinstated.
Thischangehasprovidednecessaryadministrativeflexibilitytosupporttheramp-upperiodfor MeasureCandallowedcontinueduseoftheSustainabilityFundtomaintainagencycapacity, bridgefundinggaps,andsupportimplementationreadiness.BorrowingfromtheFundforthis purposewasauthorizedbytheCommission,withtheexpectationofrestoringborrowed amountsonceMeasureCrevenuesarereceived.
FISCALIMPACT
Thereisnofiscalimpact.
RECOMMENDATION
ThattheExecutiveCommitteerecommendtheCommissionapprovethefollowingFiscalYear 2025-2035LongRangeFinancialPlan.
Submittedby:
Approvedby:
NickZhou KristinSpanos ChiefFinancialOfficer ChiefExecutiveOfficer
MariaCanteros SeniorAdministrator,Finance
Reviewedby:
CallyMartin DeputyChiefExecutiveOfficer
ASSUMPTIONSFORTHEREVISEDLONGRANGEFINANCIALPLAN
PresentedbelowaretheassumptionsusedtodeveloptheLong-RangeFinancialPlan.
REVENUES
FY2024-25figuresreflecttherevisedbudgetapprovedinFebruary2025.ForFY2025-26and subsequentyears,thefollowingrevenueassumptionswereused:
TobaccoTaxTheCaliforniaDepartmentofFinance(DoF)preparedrevised projectionsofFirst5tobaccotaxrevenuesinSeptember2024throughFY2028-29. RevenueprojectionsareestimatedandincludeProposition10,Proposition56backfill, CaliforniaElectronicCigaretteExciseTax(CECET),estimatedinterestearnedbythe administrativecosts,backfilltoProp99andBreastCancerFundandstatewide assessments.Theallocationsarebasedoffpublishedbirthratedatawhichwasupdated July19,2023.TheprojectionslistedbelowcoverFY2024-2035.
Historically,theDoFprojectionshavebeenontheconservativeside;actualrevenues receivedbeingequaltoorhigherthanprojectionswiththeexceptionofFY2018-19and FY2021-22.WeanticipatereceivingupdatedrevenueprojectionsfromtheDoFand First5Californiaperiodicallyandwewillcontinuetoforecastrevenueconservatively.
FiscalYearDoFProjectionActualRevenueFiscalYearDoFProjectionActualRevenue 2010-2011$14.0m$14.3m2023-2024$9.9m$9.9m 2011-2012$13.8m$14.5m2024-2025$9.7m 2012-2013$13.3m$13.6m2025-2026$9.3m 2013-2014$13.2m$13.2m2026-2027$8.9m 2014-2015$13.0m$13.3m2027-2028$8.3m 2015-2016$12.1m$13.2m2028-2029$8.0m 2016-2017$11.6m$12.6m2029-2030$7.6m 2017-2018$10.6m$11.3m2030-2031$7.2m 2018-2019$12.8m$12.1m2031-2032$6.8m 2019-2020$11.5m$12.6m2032-2033$6.5m 2020-2021$11.9m$13.0m2033-2034$6.2m 2021-2022$12.9m$12.5m2034-2035$5.9m 2022-2023$11.0m$11.1m
BasedontheaboveDoFprojectionforFY2025-26,theLong-RangeFinancialPlan assumesa5%decreaseintaxrevenuefromtheprioryear.BeyondFY2025-26, revenuesareexpectedtocontinuedecliningbyapproximately4%to6%annually through2035.Ifactualrevenuesshowasignificantchangeduringtheyear,the projectionforthecurrentyearwillbebroughttotheCommissionatmid-year,alongwith otherbudgetmodificationproposals.
MeasureAATaxRevenue$44,726,586
FundingfromtheCityofOaklandMeasureAAparceltaxfortheOakland InitiativeEarlyEducationFundactivities
FederalPass-ThroughContractsandGrants
$1,632,379
FundingfromAlamedaCountySocialServicesAgencytosupportearlychild developmentactivitiesintheCastlemontneighborhood,workforcedevelopment pilotandfamilynavigationservices($725,000)
FundingfromtheCaliforniaDepartmentofSocialServicesQualityCounts California(QCC)QRISBlockGrant($907,379)
StateGrants-$851,803
FundingfromFirst5CaliforniaviaFirst5SanBenito(IMPACTLegacy$787,780 andIMPACTLocalRegionalT/TAHub$64,023)tosupportlocalQRISwork includingratingandqualityimprovementinchildcaresettings
LocalContractsandGrants-$1,194,346
FundingfromAlamedaCountyHealth,AlamedaCountySocialServicesAgency, AlamedaCountyProbationDepartment,andAlamedaCountyChildSupport ServicestosupportFathersCorpswork($400,000)
AlamedaCountyPublicHealthDepartmentfundingforECChangedatabase hostingandmaintenance($179,409)
FundingfromAlamedaCountyOfficeofEducationBlockGranttosupportQuality RatingImprovementSystems(QRIS)work(projectedaward$614,937)
Other(Private)Grants$1,914,725
ProjectedfundingfromtheAlamedaAllianceforHealthforcontinuedsupportof Hmemberengagementactivitiesrelatedtocarecoordination ($921,725)
FundingfromSunlightGivingforgeneraloperatingsupport($200,000)
FundingfromtheChildFamily&CommunityServices(viaCAChildrenand FamiliesFoundation) ($418,000)
FundingfromtheHeising-SimonsFoundationtosupportMeasureCstrategic communicationsactivities($75,000)
FundingfromKaiserHospitalsFoundationtosupport BlackFathersGrouppilotprogram($95,000)
FundingtosupporttheFatherhoodSummitfromKresgeFoundation($150,000) First5California($10,000),CaliforniaWellnessFoundation($20,000)and Heising-SimonsFoundation($25,000)
Asandwhennewgrantsareawarded,theLong-RangeFinancialPlanwillberevised accordingly.
InvestmentIncomeProjectedinterestanddividendincomeearnedfrominvestments ($298,181)
FiscalLeveragingSinceFY2009-10,fiscalleveragingrevenuesconsistentirelyof federalreimbursementsundertheMedi-CalAdministrativeActivities(MAA)program. GrossMAArevenuesforthepriorfiscalyearareusuallyreceived8-12monthsin arrears.Asaresultoftheperpetualtimestudymethodologyintroducedbythegranting agencyinFY2013-14andtheinclusionofactualclientcountforinvoicing,revenues haveaveragedapproximately$2.8million.ForthepurposesofthisLRFP,itisassumed thatprogramseligibleforMAAclaimingwillbereimbursedinFY2025-26budgetyearat
$3millionandconservativelycontinuingbetween$3millionto$4millionthroughFY 2034-35.
EXPENSES
FY2025-26expenditurefiguresarefromthecurrentproposedbudgetprocess.ForFY2026-35, totalexpenseshavebeenreducedtoleaveaminimumfundbalanceasrecommendedbelow. Theplandoesnotprovideforanycost-of-livingallowancesorinflationaryincreases.Inprior yearstheseincreaseshavebeencoveredwithintherangeofannualbudgetarysavings,and thisisexpectedtocontinueinfutureyearsaswell.
UseofSustainabilityFunds
First5hasusedtheSustainabilityFundtosupportasteadystatetomaintainAgencycapacity asweanticipatethecontinuedbuild-outoftheearlychildhoodsystemandtoclosethegap betweenprogramcostsanddecliningProp10revenue.Additionally,sincethepassageof MeasureC,First5hastemporarilyloanedfundsfromtheSustainabilityFundtohelpthe organizationprepareforimplementation.
Atransferofapproximately$19.9millionfromMeasureCtotheProposition10fundis anticipatedtorepaytheamountspreviouslyloanedtosupportMeasureCreadinessactivities. ThistransferissubjecttoapprovaloftheMeasureCspendingplanbytheAlamedaCounty BoardofSupervisors.Onceapprovedandreceived,thesefundswillberestoredtothe SustainabilityFund.
MINIMUMFUNDBALANCEREQUIREMENTS
First5AlamedaCountyhashistoricallymaintainedaminimumfundbalanceinthe SustainabilityFundequaltosixmonthsofProp10operatingexpensesplusanamount reservesserveasanoperatingbuffertoaddressongoingcashflowrequirementsand potentialdelaysinreceivingstatetobaccotaxrevenuesorotherincome.
However,inOctober2024,theCommissionapprovedatemporarysuspensionofthe six-monthminimumfundbalancepolicy.Th administrativeandfinancialflexibilityduringtheramp-upandplanningphaseofMeasure Cimplementation.ThesuspensionwillremainineffectuntiltheCountyofAlameda releasesMeasureCfunding,atwhichtimethesix-monthminimumfundbalance requirementwillautomaticallybereinstated.
TheSustainabilityFundcontinuestobeakeymechanismformaintainingAgency capacity,bridgingfundinggaps,andpreparingforMeasureC.TheCommissionalso authorizedtemporaryborrowingfromtheFundforimplementationreadiness.Upon receiptofMeasureCfunds,borrowedamountswillberestored.
HISTORICALBACKGROUND
TheLong-RangeFinancialPlantoolwasdesignedtostrategicallyguidetheuseofFirst5
AlamedaCountyCommissionasastrategytoensurealong-termcommitmenttofunding servicesforchildrenages0-5,evenasthetobaccotaxrevenuedeclined.
TheSustainabilityFundisprojectedtobeapproximately$14.9millionattheendofthecurrent 24-25fiscalyearandwasaccumulatedinanumberofwaysoverthepastyears.First,theFund developedthroughtheinitialreservethatoccurredwhentaxdollarswereaccumulatedbutcould notbespentuntilaStrategicPlanwaspassed(Jan.1999-Jan.2000).Thereafter,contributions totheSustainabilityFundwereintentionallybudgetedoverseveralyears(2001-2004).Finally, budgetedfundsthatremainedunspentweredirectedbytheCommissiontobeaddedtothe SustainabilityFund,ratherthanberolled-over -present). Itisimportanttonotehoweverthat,SustainabilityFundshavebeenbudgetedforprogramuse since2005-06,whichmeansthatexpenseshavebeenprojectedhigherthanrevenuesineach ofthoseyears,butbudgetsavingsinthoseyearsmadeitunnecessarytodrawfromtheFund. ThesechangeshaveresultedindrawsperiodicallyfromtheSustainabilityFundonlysinceFY 2009-10.
ThefollowingisasummaryoftheuseofsustainabilityfundsasindicatedintheLong-Range FinancialPlan.TheplanassumesthatSustainabilityFundswillcontinuetobeusedtomaintain abalancedbudget,throughouttheplantimeframe.
DrawdownfromSustainabilityforOperations($millions)
1IncreasedoutlayonContractsinordertoreducefundbalanceinanticipationofAB99whichrequiredallFirst5stotransferhalf theirfundbalancetotheStateofCAbytheendof2012.AB99wassubsequentlyrepealedandthethreatpassed. 2Purchaseofofficebuildingat1115AtlanticAve.,AlamedainApril2013.
