2016-17 Proposed Budget.pres.finalcao.lacity.org/budget16-17/2016-17 Proposed Budget-Santana presentation.pdf2016‐17 Proposed Budget April 27, 2016 TOTAL PROPOSED 2016‐17 CITY

2016‐17 Proposed BudgetApril 27, 2016

OVERVIEWOF THE

2016-17 PROPOSED BUDGET

Miguel A. SantanaCity Administrative Officer


BUDGET SUMMARY

2016‐17 Proposed Budget is financially sound, maintaining core services while meeting City leaders’ commitment to fund the Homelessness Strategy.• Fully complies with financial policies• Uses continued revenue growth prudently• Addresses obligatory funding requirements• Continues core services• Presents $138 million for homelessness• Keeps the City within reach of eliminating the structural deficit.


TOTAL PROPOSED 2016‐17 CITY GOVERNMENT

Appropriations ($ Millions)

Authorized Positions

I.Proprietary DepartmentsAirports $ 5,182.5 3,862Harbor $ 1,154.7 999Water and Power $ 8,325.2 10,014

Total $ 14,662.4 14,875

II.General City BudgetGeneral Fund $ 5,558.3 22,854Special Funds $ 3,199.2 10,225

Total $ 8,757.6 33,079

III.Grants and other Non‐Budgeted FundsTotal $ 1,395.8 ‐

Grand Total $ 24,815.8 47,954

BUDGET SUMMARY

*Sworn staff represents 59 percent of General Fund positions.**Regular positions.

*

**


Budget ($ Millions) Authorized Positions

Budget Component

Adopted 2015-16

Proposed 2016-17

Percent Change

Adopted 2015-16

Proposed 2016-17

Percent Change

General Fund $ 5,410.4 $ 5,558.3 2.7% 22,572 22,854 1.2%

Special Funds $ 3,172.2 $ 3,199.2 0.9% 10,004 10,225 2.2%

Total $ 8,582.6 $ 8,757.6 2.0% 32,576 33,079 1.5%

BUDGET SUMMARY


$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Thou

sand

s

CITY GENERAL FUND REVENUE

Other Revenue (‐2.2%)Parking Users' Tax (2.4%)Documentary Transfer Tax (4.3%)Transient Occupancy Tax (7.0%)Sales Tax (3.0%)Business Tax (‐0.9%)Utility Users' Tax (1.0%)License, Permits, Fees, and Fines (1.9%)Property Tax (includes VLF) (6.5%)

$1,788 million

$909 million

$634 million

$502 million$520 million

$247 million$200 million$111 million

$648 million

2016‐17

Fiscal Year Ending

BUDGET SUMMARY


Fire17.1%

Police54.2%

Library4.5%

Recreation & Parks5.6%

City Attorney3.0%

Other7.4%

Public WorksStreet ServicesTransportation

EngineeringBoard

Contract Admin.Capital

ImprovementsBuilding & Safety

Planning8.2%

2016‐17 BUDGET UNRESTRICTED REVENUES($4.67 Billion out of $5.56 Billion Total General Fund)

Unrestricted Revenues are 53.3% of the City Budget.Restricted Revenues (46.7%) include Grants (except Police Dept.), Sewer, Solid Waste, and Gas Tax

BUDGET SUMMARY


$218 $261

$284

$313

$322

2.06%

3.28%3.12%2.76%

3.07%3.33%

4.23%4.55%

4.23%

5.53%

2.91%

4.04%

4.79%

5.37%5.53%

5.79%5.80%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

$‐

$50

$100

$150

$200

$250

$300

$350

Millions

ADOPTED BUDGET RESERVE FUND POLICY

Reserve Fund ‐ Adopted Budget Level Balance as Percent of General Fund

FINANCIAL POLICY COMPLIANCE


4.23%

5.55%

3.22% 4.05%

4.98%

7.06% 7.19%

8.72%

7.68%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

$400.0

$450.0

$500.0

2008‐09 2009‐10 2010‐11 2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17(Proposed)

Millions

ADOPTED BUDGET RESERVES(Reserve Fund, Budget Stabilization Fund, and UB Reserves)

Emergency Reserve Contingency Reserve Budget Stabilization FundUB Reserves Total Percentage of General Fund



$53

$18

$66

$146

$181

$156

$118 $103

$35

$83 $88

$110

$156

$121

$‐

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2010‐11 2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17

ONE‐TIME REVENUES VS. ONE‐TIME EXPENDITURES POLICY(Proposed Budgets)

One Time Revenues One Time Expenditures



1.13%

0.26%

0.54%

0.21%0.15% 0.15% 0.15%

1.06% 1.07%

1.38%

1.60%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

$‐

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17(Proposed)

Millions

CAPITAL AND INFRASTRUCTURE FUNDING POLICY(Investment as Percentage of General Fund Revenue)

Total GF Capital Investment 1% Spending Level



• Police Overtime Budget at $90 million• Four firefighter hiring classes at $17.3 million• 2,400 lane miles for street resurfacing• $31 million for sidewalks• Expansion of the Clean Streets Program by one additional team

(Total of $8.8 million)• Maintain funding for graffiti abatement ($8.0 million) and tree

trimming ($7.5 million)• $7.5 million for job programs for former gang members, pursuant

to settlement• 503 regular positions added• Homelessness commitment of $138 million

CORE SERVICES: SUMMARY


Building and Safety, 149

Fire, 95

Sanitation, 85 Library, 49

Planning, 43

Police, 40 Recreation and

Parks, 18

Animal Services, 12

Others, 12

NET NEW POSITIONS BY DEPARTMENT(Total New Positions: 503*)

* Includes net new and regularized positions.

CORE SERVICES: NEW POSITIONS


HOMELESS BUDGET

CORE SERVICES: HOMELESS STRATEGY

FUNDING SOURCES AMOUNT(MILLIONS)

General Fund $64.8

Departmental Special Funds $6.4

Affordable Housing Linkage Fee $20.0

City Properties $47.0

Total 2016‐17 Proposed Budget $138.2

FUNDING CATEGORIES AMOUNT(MILLIONS)

Capital $67.0

Alternate Housing $35.1

Services $24.6

Administrative Implementation $11.5

Total 2016‐17 Proposed Budget $138.2


•More than 2,500 Rapid Re‐housing rental vouchers•Approximately 1,500 annual shelter beds, 190 additional winter shelter beds, 32 sobering beds, & more than 500 annual domestic violence shelter beds

• Enhanced CES regional infrastructure• Three outreach coordination sites•Up to six Open Door Resource Centers providing storage, showers, and services•At least 40 low income and/or homeless seniors provided job training and placement• 4,000 spay/neuter certificates for low income/homeless pet owners• Provide comprehensive workforce development training and job placement for more than 400 low‐income/homeless individuals

• Enhanced cleaning at 35 park restroom facilities and expanded bathroom access for sites serving homeless individuals

•More than 600 units of accessible affordable and permanent supportive housing constructed

•Outreach to 2,200 encampments prior to Sanitation clean ups• Provide six comprehensive and twelve spot cleanings as part of Operation Healthy Streets

CORE SERVICES: HOMELESS STRATEGYANTICIPATED HOMELESS BUDGET PROGRAMMATIC OUTCOMES


$5,558

$5,600

$5,783

$5,983

$6,157

$5,558

$5,693

$5,868

$6,084

$6,182

($93)

($85)

($100.6)

($25)

$5,300

$5,500

$5,700

$5,900

$6,100

2016‐17 2017‐18 2018‐19 2019‐20 2020‐21

Millions

FOUR‐YEAR BUDGET OUTLOOK(Proposed 2016‐17 Budget)

Revenues Expenditures

THE STRUCTURAL DEFICIT


($69)

($25)

($4)

$103

$5,500

$5,700

$5,900

$6,100

2016‐17 2017‐18 2018‐19 2019‐20 2020‐21

Millions

IMPACT OF 0% PENSION INVESTMENT RETURN ASSUMPTIONON FOUR‐YEAR OUTLOOK

Revenues Expenditures (0% Pensions Investment Returns) Expenditures (7.5% Pensions Invetment Returns)



24.71% 24.14% 25.33%26.56%

28.75% 28.16% 28.20% 28.75% 29.25% 29.45% 29.75%

39.07% 39.94%

44.40%

47.94%46.51%

44.54% 45.03% 44.16%45.62% 45.13%

43.09%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18(Projected)

2018‐19(Projected)




LACERS AND LAFPP CONTRIBUTION RATES**

LACERS* LAFPP

*Includes Tier 1 only.


**Projections are based on an analysis by an actuary commissioned by the CAO.


$(1,479.5)

$(1,145.7)$(1,053.8)

$(353.3)$(405.0)

$(37.0)

$(303.9)

$(1,600.0)

$(1,400.0)

$(1,200.0)

$(1,000.0)

$(800.0)

$(600.0)

$(400.0)

$(200.0)

$‐

FY 11 (2011‐12to 2014‐15)

FY 12 ( 2012‐13to 2015‐16)

FY 13 (2013‐14to 2016‐17)

FY 14 (2014‐15to 2017‐18)

FY 15 (2015‐16to 2018‐19)

FY 16 (2016‐17to 2019‐20)

FY 17 Proposed(2017‐18 to2020‐21)

Millions

CUMULATIVE FOUR‐YEAR DEFICIT BY YEAR OF OUTLOOK(Fiscal Years Included in Outlook)



In addition to the continuing structural deficit, the Proposed 2016‐17 Budget poses the following challenges:• Ongoing litigation• Liability claims funding• Pending labor contracts• Limited UB – Reserve for Mid‐Year Adjustments • Need for dedicated homelessness funding stream

BUDGET CONCERNS


LIABILITY CLAIMS BY ACCOUNT(Based on Five‐Year Average)

Account Name

2016‐17 Proposed Budget

Fire Liability Payouts $ 2,250,000 General Services Liability Payouts $ 1,000,000 Police Liability Payouts $ 30,750,000 Public Works, Engineering Liability Payouts $ 1,100,000 Public Works, Sanitation Liability Payouts $ 8,750,000 Public Works, Street Services Liability Payouts $ 8,500,000 Recreation and Parks Liability Payouts $ 1,150,000 Transportation Liability Payouts $ 4,200,000 Miscellaneous Liability Payouts $ 10,750,000

Total $ 68,450,000 *

* Includes $60 million General Fund and $8.45 million Special Funds

Traffic Accident, $11.8 , 22%

Employment, $14.2 ,

26%Civil Rights / Excessive Use of Force,

$12.7 , 23%

Dangerous Conditions / Trip and Fall, $9.6 ,

18%

Various, $5.7 , 11%

GENERAL FUND LIABILITYPAYOUTS

(Five‐Year Average; Millions)

BUDGET CONCERNS: LIABILITY CLAIMS

Documents

2016-17 Proposed Budget.pres.finalcao.lacity.org/budget16-17/2016-17 Proposed Budget-Santana presentation.pdf2016‐17 Proposed Budget April 27, 2016 TOTAL PROPOSED 2016‐17 CITY