FISCALYEAR201314 PROPOSEDBUDGET

Recovery,Restoration,Reinvestment

FY1314BUDGETOVERVIEW
TotalBudget:$7.7billion(GeneralFund:$4.87B,Special
Funds:$2.82B)

Balancedwith70%ongoingsolutions ProposedReserveFund:$255.2million(5.24%ofGF) NoLayoffs&NoFurloughs ReinvestsinServicesandInfrastructure DepartmentConsolidations ProposesLaborConcessions

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FY1314BUDGETBALANCINGACTIONS
PreviouslyProjectedDeficit
$350

ProposedBudgetSolutions $335M

$300 $250 Millions OneTimeRevenues $140M

$216M
Other Changes, $14M Effiencies/Reductions,$18M

Surplus Savings/Revenue $119M

$200 $150 $100 $50 $

PensionSavings $51M
EconomyDriven RevenueGrowth $111M
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SERVICERESTORATIONANDREINVESTMENTS
New&IncreasedServices $119M
Additional GraffitiRemoval,$1M AnimalShelter Staffing,$1M TreeTrimming,$4M CommunityServices,$4M TechnologyInvestments, $5M StreetResurfacing,$18M EconomicDevelopment, $6M PoliceOTBank Reduction,$15M Sidewalk Repairs, $10M Other, $10M

Additional CashReserve,$21M

LAFDTechnologyUpgrades &NewFirefihters,$10M

LAPDVehicle Replacement, $15M

ECONOMICGROWTH&RECOVERY
GENERALFUNDREVENUE
$5.00 $4.80 $Billions $4.60 $4.40 $4.20 $4.00 201011 Actual 201112 Actual 201213 Estimated 201314 Projected
5.1% growth

$4.87

5.6% growth 2.1% growth

$4.64

$4.39

$4.30

TheleadingeconomicindicatorsfortheCityofLosAngelesandourregionreflectcontinuedgrowthin jobs,businessandtourism. UnemploymentRate Unemploymenthasdecreasedby1.4%fromFebruary2012. Jobs Constructionjobshaveincreased,with8.1percentgrowthfromthistimelastyear. Tourism&Hospitality Occupancyisup4%overlastyear,withoccupancyratesof75%androom ratesup4.3%($135.98averageroomnight) InternationalTrade TotalandinboundcargoatthePortofLAisup16.9%and25.2%,respectively. Housing&Development Buildingpermitvaluationsareup20%andhousingstarts9%.
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HIGHLIGHTS JOBS&ECONOMICDEVELOPMENT
CreationofNewEconomicDevelopmentDepartment ConsolidationofPlanningDepartment,DepartmentofBuilding
&Safety,andotherdevelopmentservicesintoanew DepartmentofPlanningandDevelopment

HIGHLIGHTS PUBLICSAFETY
MaintainsLAPDat10,000swornofficers ProvidesfundingfornewLAPDvehicles ReopensFireDepartmentDrillTowerforrecruitmentandhiring
of140newfirefighters

Upgradeof25basicFireDepartmentambulancestoadvanced
lifesupportambulances

MaintainsfundinglevelforcomprehensiveGangReductionand
YouthDevelopment(GRYD)program

RestoresstaffforAnimalShelteroperations
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HIGHLIGHTS COMMUNITYSERVICES
RestoressevendayserviceattheCentralLibraryandeight
Regionallibraries

Providesfundingforrecreationprogrammingandmaintenance
ofnewandrenovatedparkfacilities

MaintainsHomelessShelterBedprogram ProvidesfundingforNeighborhoodCouncilElections IncreasesfundingforGraffitiRemovalprogram EstablishesCitywideMuralProgram

HIGHLIGHTS INFRASTRUCTUREINVESTMENTS
Maintainsstreetresurfacingprogramat800miles Maintainsfundingfor350,000potholerepairs Increasesfundingfortreetrimming Providesnewfundingforcriticalsidewalkrepair IncreasesfundingforLARiverRevitalizationprograms Providesnewfundingforbicycleplanning

REMAININGCHALLENGES
PensionandEmployeeCompensationCosts
Retirementandhealthbenefitscostscontinuetogrow Opencontractsformajorityofunionsin2014

StreetsProgramandSidewalkRepair
LossofStatefundingforstreetpavementandpreservation Longtermplanforsidewalkrepairrequired

PoliceOvertimeBank
AccruedLAPDOTbank MOUexpiresonJune30,3014
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PROPOSEDSPENDINGCUTS&LABORCONCESSIONS
Eliminationof5.5%payraisesfor60%ofcivilianworkforce
scheduledforJanuary1,2014

ProposesCityemployeescover10%ofhealthbenefitpremium
costsonanongoingbasis

Proposesnoadditionalemployeeraisesforthreeyearsbeyond
July1,2014

ContinuesManagedHiring tocontrolgrowthofCityworkforce CutsMayorandCityCouncilbudgetsby10%

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FISCALOUTLOOK
FY201415
$200

FY201516

FY201617

FY201718

$15
$0

($159)
($200)

($114)

($95)

Millions

($400)

By201718,thedeficitwillbe eliminated,andtheCitywillhave a$15millionsurplus.

($600)

($800)

Source:LosAngelesCityAdministrativeOfficer

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CASHRESERVES TOTALOF$292MILLION
Budget Stabilization Fund Reservefor Economic Uncertainties

$16M
Emergency Reserve

$21M Surplus Reserve $158M

Contingency Reserve

Mandated Reserve $134M

$134M

$121M

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