City of Los Angeles
CommunityFinancial ReportSummary of the Fiscal Year 2013 Comprehensive Annual Financial Report
www.controller.lacity.org@RonGalperin
Fellow Angelenos:
The Los Angeles City Controller serves as City's chief auditor, accountant and watchdog over the Citysfinances and operations. Each year the Controller releases a Comprehensive Annual FinancialReport (CAFR) detailing revenues, expenditures, assets and liabilities of the City. This year, we areintroducing this concurrent Community Financial Report (CFR) providing a summary, along witheasy-to-read charts and graphs, for the community.
Transparency and accessibility of information about our City is a major initiative of my office. This iswhy we established ControlPanelLA (ControllerData.LACity.org) a new site that opens the books onthe Citys financial and payroll data. Schedules from the Statistical Section of the full CAFR are nowavailable on ControlPanelLA, along with options for anyone to view, save and download the data.
Return on Investment is key to realizing a more efficient and effective City for Angelenos. To thatend, getting a handle on the Citys finances and achieving measurable outcomes is essential. Thisreport offers some selected operating indicators for various City departments; the need for moreand better measuring tools, however, is evident. Along with the Mayor, Council and others, our officewill be focusing this coming year on how to better measure performance and working to put it intoaction.
Knowledge is power. This report -- along with our other information, open data and auditinginitiatives -- are intended to offer both more knowledge and empowerment to our Citys residentsand businesses. I look forward to continuing in my efforts to effect greater transparency in our City.We in the Controllers Office are here to serve you. And, together, we all have an important role inserving as watchdogs of our Citys finances, and its future.
Controllers Message
The Community FinancialReport is a financial reportingproject of the Office of LosAngeles City Controller RonGalperin with the goal ofeducating and empoweringAngelenos on the Finances ofthe City.
Thank you,
February 27, 2014
Controllers Perspective
The City has a number of critical challenges and keyopportunities including:
Looking ForwardFollowing Ten Guiding Financial Principles will allow theCity to improve its financial condition and benefit theCity as a whole.
Healthy Budgeting
Implement a budget based on performance and measurable results.
Focus on Return on Investment (ROI).
Reform City procurement.
Reduce liabilities with a comprehensive risk mitigation strategy.
Invest in technology.
Put the Citys vast assets and resources to work.
Improve accounting and accountability in Special Funds.
Explore savings in healthcare and pension costs.
Maximize current City revenues and collections.
Continue to build the Citys Reserves.
1
Structural budget shortfall
Pension and legal liabilities
Infrastructure asset management
Economic and education gaps
Traffic
Attracting and retaining businesses
Creative and diverse economy
City assets and reserves
Tourism and trade
Safer streets
Downtown revival
Location, Location, Location!
2
3
4
5
6
7
8
9
10
Challenges
Opportunities
Controllers Office
Auditing Division
FARID SAFFARDirector of Auditing
Financial and Compliance Audits
Performance Audits
Vendor Services Reviews
Fraud, Waste & Abuse Hotline
Special Analysis and Reviews
Accounting Operations
OPENPrincipal Deputy
Controller
Budgetary Control of City Funds
Payment Approval
Payroll
Check Security
Financial ReportingTODD BOUEY
Director of Financial Reporting
Comprehensive Annual Financial Report
General Accounting
Single Audit of Federal Grants
Cost Allocation Plan
Check Reconciliation
Enterprise Financial Management System
Key Report Contributors
Juan Lopez
Sally Rocio
Elizabeth Lee
Josefina Quiocho
Julieta Barba
Louella Ubaldo
Marie de los Reyes
Marlene Salandanan
Ron GalperinCity Controller
CLAIRE BARTELSChief Deputy
Controller
SUZY JACKDeputy Controller
DANIEL TARICADeputy Controller
Table of ContentsI. City Profile
City Facts & Indicators 1
City Organization 2
City Activities 3
II. Summary Financial Statements
Net Position 4
Government-Wide Assets 5
Government-Wide Liabilities 6
Statement of Activities 7
Government-Wide Revenues 8
Government-Wide Expenditures 9
III. Governmental Activities
Protection of Persons & Property 10
Public Works 11
Health and Sanitation 12
Transportation 13
Community Development 14
Cultural & Recreational Services 15
General Government 16
IV. Business-Type Activities
Airports 17
Harbor 18
Water and Power 19
Sewer 20
Los Angeles Convention Center 21
V. Glossary 22
VI. Credits & Considerations 24
Key City Indicators* 3-Year Trend
Estimated Population, 2013 3.9 million
Public School Enrollment, 2013 625,935
Personal Income per Capita, 2012 $44,474
Unemployment Rate, 2013 9.7%
Net Property Valuation, 2013 $416.5 billion
Total Direct Property Tax Rates, 2013 (per $1,000 assessed value) $1.038
Outstanding Debt per Capita, 2013 $5,684
Reserve Fund as % of General Fund, Beginning Balance 2013 6.7%
GO Bond Rating, December 2013 (Moodys, S&P, Fitch) Aa2, AA-, AA-
City Facts & Indicators
1*For detail, see Comprehensive Annual Financial Report, FY 2013
Key City Facts
Founded as City 1781
Incorporated 1850
Current Charter Adopted July 1, 2000
Fiscal Year July 1 June 30
Square Miles 470
City Profile I
City Organization
2
Organization of the City of Los Angeles
City Profile I
General Government
Protection of Persons and
Property
Public Works Health and Sanitation
Transportation
Water and Power
Community Development
Harbor
Airports
Cultural and Recreational
Services
Sewer
Convention Center
B. Business-Type ActivitiesFunctions intended to recover all (or in large part) costs through user fees and charges
A. Governmental Activities Functions principally supported by taxes and intergovernmental revenues
Two Types of Basic City Activities:
City Activities
3
City Profile I
Net Position
Government-Wide Summary Statement of Net PositionFY 2013
(amounts expressed in thousands)
GovernmentalActivities
Business-type Activities Total
Assets
Current and other assets $5,568,502 $9,971,185 $15,539,687
Capital assets 7,182,742 28,322,64035,505,382
Total assets 12,751,244 38,293,825 51,045,069
Deferred outflows of resources 0 97,668 97,668
Liabilities
Current and other liabilities. 646,717 1,476,526 2,123,243
Long-term liabilities. 7,644,127 19,497,487 27,141,614
Total liabilities. 8,290,844 20,974,013 29,264,857
Net position
Investment in capital assets net of related debt.. 4,452,921 10,135,052 14,587,973
Restricted. 2,436,809 3,662,540 6,099,349
Unrestricted (2,429,330) 3,619,888 1,190,558
Total net position. $4,460,400 $17,417,480 $21,877,880
The Statement of Net Positionis a summary of assets (whatthe City owns), and liabilities(what the City owes), includingdeferred outflows/inflows ofresources and equity.
The City raises and budgetsresources needed to pay aliability during the year inwhich the liability is duerather than during the year inwhich the liability is incurred.The deficit balance for thegovernmental activitiesunrestricted net position of$2.4 billion reflects theextent to which the City hasdeferred to future periodsthe financing of certainliabilities.
Invested in Capital Assets, Net of
Related Debt, 67%
Unrestricted, 5% Restricted for Capital Assets, 2%
Restricted for Debt Service, 6%
Restricted for Special
Purposes, 20%
Restricted
Total Net Position by CategoryFY 2013
Breakdown of Net Position
67% capital assets net of related debt
28% restricted resources 5% unrestricted resources
4
Summary Financial Statements II
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Capital AssetsEnd of FY 2013
($ millions)
Governmental Activities Business-Type Activities
$0$10,000$20,000$30,000$40,000$50,000$60,000
2013 2012
Government-Wide Assets($ millions)
Current and Other Assets Capital Assets
Assets
Represent what the City owns Cash and Cash Equivalents Receivables Inventories Restricted Assets Capital Assets
Summary of Assets
Key Assets
As of June 30, 2013, approximately $8.6 billion was held in the CityTreasury, of which approximately $8.5 billion was in pooledinvestments.
Purchased or constructed capital assets are valued at historical cost.Major improvements to capital assets are capitalized as constructed.
Governm
ent-Wide Assets
$145
$8,479
Deposits and InvestmentsEnd of FY 2013
($ millions)Cash on Hand
Deposits and in transit
Pooled Investments 1-30 Days
Pooled Investments 31-60 DaysPooled Investments 61-365 DaysPooled Investments 366 Days to 5 YearsPooled Investments Over 5 Years
5
Summary Financial Statements II
Governm
ent-Wide Liabilities
$0$5,000
$10,000$15,000$20,000$25,000$30,000$35,000
2013 2012
Government-Wide Liabilities($ millions)
Current and Other Liabilities Long-Term Liabilities
Liabilities
Represent what the City owes Accounts Payable Bonds and Notes Compensated Absences Claims and Judgments
Summary of Liabilities
Key Liabilities
As of June 30, 2013 , the City estimates the amount of GovernmentalActivities tort and non-tort liabilities and workers compensationliability at approximately $771.5 million and $2.2 billion, respectively.
$0
$5,000
$10,000
$15,000
$20,000
Bonds and NotesEnd of FY 2013
($ millions)
Governmental Activities Business-Type Activities
$0$500
$1,000$1,500$2,000$2,500$3,000$3,500
Other Long Term LiabilitiesEnd of FY 2013
($ millions)
Governmental Activities Business-Type Activities
The City Debt Policy stipulates that non-voter approved debt serviceshall not exceed 6% of the Citys General Fund receipts. For the fiscalyear ended June 30, 2013, the non-voter approved debt service ratiowas 4.51%.
6
Summary Financial Statements II
Statement of Activities
Summary Statement of Activities(amounts expressed in thousands)
Governmental Activities Business-type Activities Total
FY 2013 FY 2012 FY 2013 FY 2012 FY 2013 FY 2012
Revenues $6,515,239 $6,411,123 $6,603,809 $6,328,480 $13,119,048 $12,739,603
Expenses 7,143,880 6,316,712 5,733,509 5,482,876 12,877,389 11,799,588
Excess (Deficit) of revenues over expenses.
(628,641) 94,411 870,300 845,604 241,659 940,015
Transfers 246,534 250,077 (246,534) (250,077) -- --
Special Items.............. 112,074 -- 13,387 -- 125,461 --
Increase (Decrease) in net position. (270,033) 344,488 637,153 595,527 367,120 940,015
Net position beginning of year 4,730,433 4,376,039 16,780,327 16,184,800 21,510,760 20,560,839
Net position end of year $4,460,400 $4,720,527 $17,417,480 $16,780,327 $21,877,880 $21,500,854
The Statement of Activities is a summary showing how the Citys netposition changed during a fiscal year. Revenues and expenses in thisstatement are reflected in the year earned or liability incurred even thoughthe actual receipts and payments may not occur until future fiscal years.
Governmental Activities total expenses, for the fiscal year ended June30, 2013, exceeded revenues by $628.6 million. This deficit was largelydriven by higher estimated liabilities associated with workerscompensation, tort and non-tort liabilities.
$(200,000)
$1,800,000
2009 2010 2011 2012 2013
Changes in Net Position (Net Income)($ thousands)
Governmental Activities Business-Type Activities
Net positions may serve over time as an indicator of a governments financial position. Business-Type Activities have steadily increased inNet Position over the past five years; however, Governmental Activities have experienced two years of decline during the same period.
7
Summary Financial Statements II
Governm
ent-Wide Revenues
0%
10%
20%
30%
40%
50%
60%
70%
Thou
sand
sGovernment-Wide Revenues
FY 2013
Governmental Activities Business-Type Activities % Total RevenueGovernmental Activities
Property Taxes, Charges for Services, and Operating Grants and Contributions comprise 67% of total revenue
Total revenue increased by $104 million over FY 2012
Business-Type Activities
Charges for Services comprise 98% of total revenue
Airport revenues totaled $1.1 billion, a 1% increase
Harbor revenues totaled $417 million, a 4% decrease
Water & Power revenues totaled $4.3 billion, a 7% increase
Sewer revenues totaled $589million, an 11% increase
Total revenue increased by $275 million over FY 2012
8
Summary Financial Statements II
Governm
ent-Wide Expenditures
0%
5%
10%
15%
20%
25%
Thou
sand
sGovernment-Wide Expenditures
FY 2013
Governmental Activities Business-Type Activities % Total Expenditure
Governmental Activities
Governmental Activities comprise 55% of total expenditure
Protection of Persons and Properties comprise 39% of total Governmental Activities expenditure
Overall expenditures totaled $7.14 billion, a 13% increase
Business-Type Activities
Business-Type Activitiescomprise 45% of total expenditure
Airport expenditures totaled $923 million, a 3% increase
Harbor expenditures totaled $332 million, a 1% decrease
Water & Power expenditures totaled $3.87 billion, a 5% increase
Sewer expenditures totaled $572 million, a 5% increase
Overall expenditures totaled $5.73 billion, a 5% increase
9
Summary Financial Statements II
80,000
90,000
100,000
110,000
120,000
130,000
2008 2009 2010 2011 2012 2013
Total Part I Crime* by Fiscal Year
Protection of Persons & PropertySelected Indicators
(FY 2013 CAFR pages 366-377)
16,500
17,000
17,500
18,000
18,500
19,000
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2009 2010 2011 2012 2013
posi
tion
auth
oriti
es
$ m
illio
ns
Revenues Expenses Position Authorities
2009 2010 2011 2012 2013
Dog licenses issues 121,138 116,500 121,817 123,080 126,234
Building permits issued 110,992 115,213 115,694 121,140 126,426
Fire responses (including automatic alarms) 138,200 114,121 118,986 122,492 121,381
Emergency medical responses by ambulances 382,000 377,267 377,026 384,557 407,240
Arrests made 168,000 151,174 160,480 162,698 150,552
Fact at a GlanceFive Year History of Revenues, Expenses and Positions
(Accrual Basis)
10
*Part I crimes are reported violent and property crimes indexed for comparative purposes.
Infrastructure Information(FY 2013 CAFR pages 378-381)
Asset Number of
Animal Shelters 6
Fire Stations 106
Police Stations 29
General Governmental Activities III
A42.0%
B29.0%C22.8%
D6.0%
F *0.2%
% of City Bridges by Condition Rating as of July, 2013
Public Works
Selected Indicators(FY 2013 CAFR pages 366-377)
1,000
1,500
2,000
2,500
3,000
3,500
$0$50
$100$150$200$250$300$350$400$450$500
2009 2010 2011 2012 2013
posi
tion
auth
oriti
es
$ m
illio
ns
Revenues Expenses Position Authorities
2009 2010 2011 2012 2013
Graffiti eradicated (square foot) 28,300 32,000 35,700 30,100 30,094
Debris removed (cubic yards) 183,379 157,886 125,000 95,505 77,704
Trees trimmed in Citys urban forest 75,504 32,211 13,351 22,226 50,000
Streets resurfaced (miles) 200 149 174 236 245
Fact at a GlanceFive Year History of Revenues, Expenses and Positions
(Accrual Basis)
Rating of F relates to Sixth Street Viaduct. Its replacement is in the design phase. Sufficiency Ratings are in accordance with Federal Highway Administration standards.
11
Infrastructure Information(FY 2013 CAFR pages 378-381)
Asset Number of
Bridges 514
Street Lights 207,384
Streets (miles) 6,500
General Governmental Activities III
Health &
Sanitation
Selected Indicators(FY 2013 CAFR pages 366-377)
2,100
2,200
2,300
2,400
2,500
2,600
2,700
2,800
$0
$100
$200
$300
$400
$500
$600
2009 2010 2011 2012 2013
posi
tion
auth
oriti
es
$ m
illio
ns
Revenues Expenses Position Authorities
2009 2010 2011 2012 2013
Bulky items collected (tons) 33,146 33,330 32,479 27,640 34,000
Refuse collected (tons) 1,034,429 867,113 882,005 851,434 954,477
Yard trimmings collected (tons) 555,049 474,657 492,341 470,527 522,737
Recyclables collected (tons) 170,000 141,314 148,194 143,338 150,380
Fact at a Glance
Los Angeles
New York
Chicago
Houston
Philadelphia
0%
20%
40%
60%
80%
100%Recycling Rate of 5 Largest Cities*
Five Year History of Revenues, Expenses and Positions
(Accrual Basis)
12
*Source: http://san.lacity.org/solid_resources/recycling/index.htm
Infrastructure Information(FY 2013 CAFR pages 378-381)
Asset Number of
Refuse Collection Trucks 750
Refuse Yards 7
General Governmental Activities III
Transportation
Selected Indicators(FY 2013 CAFR pages 366-377)
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2009 2010 2011 2012 2013
posi
tion
auth
oriti
es
$ m
illio
ns
Revenues Expenses Position Authorities
2009 2010 2011 2012 2013
Citations written 2,784,351 2,587,925 2,461,529 2,522,302 2,654,910
Abandoned vehiclesabated 116,967 100,589 102,911 74,270 61,062
Transit vehicle passenger trips 31,860,898 30,535,921 27,466,279 23,824,821 26,467,594
Increase in bicyclelane miles 7 10 17 51 101
Fact at a Glance
13%10% 7%
19%
5%
15%15%
11%
7%
Travel Time to Work (in minutes) City of Los Angeles 2011*
60 or more minutes
45 to 59 minutes
35 to 44 minutes
30 to 34 minutes
25 to 29 minutes
20 to 24 minutes
15 to 19 minutes
10 to 14 minutes
Less than 10 minutes
Five Year History of Revenues, Expenses and Positions
(Accrual Basis)
13
Infrastructure Information(FY 2013 CAFR pages 378-381)
Asset Number of
Bike Paths 14
Commuter Buses 371
Traffic Signals 4,657
* Source: Los Angeles County Economic Development Corporation
General Governmental Activities III
Comm
unity Developm
ent
Selected Indicators(FY 2013 CAFR pages 366-377)
1,020
1,040
1,060
1,080
1,100
1,120
1,140
1,160
1,180
1,200
$0$50
$100$150$200$250$300$350$400$450$500
2009 2010 2011 2012 2013
posi
tion
auth
oriti
es
$ m
illio
ns
Revenues Expenses Position Authorities
2009 2010 2011 2012 2013
Senior meals served 1,632,027 1,655,446 1,625,627 1,590,525 1,535,913
Affordable units monitored 18,000 15,121 20,684 20,226 21,578
Multi-family units inspected 183,741 183,741 180,000 189,771 179,728
Tenant complaints processed 8,900 5,632 6,408 5,426 5,780
Fact at a Glance
13%11% 11%
14%
17%
11%13%
5%
5%
Households by IncomeCity of Los Angeles 2012*
Less than $15,000$15,000 to $24,999$25,000 to $34,999$35,000 to $49,999$50,000 to $74,999$75,000 to $99,999$100,000 to $149,000$150,000 to $199,999$200,000 or more
Five Year History of Revenues, Expenses and Positions
(Accrual Basis)
14
* Source: Los Angeles County Economic Development Corporation
General Governmental Activities III
Cultural & Recreational Services
Selected Indicators (FY 2013 CAFR pages 366-377)
1,000
1,500
2,000
2,500
3,000
3,500
$0
$100
$200
$300
$400
$500
$600
2009 2010 2011 2012 2013
posi
tion
auth
oriti
es
$ m
illio
ns
Revenues Expenses Position Authorities
2009 2010 2011 2012 2013
Library items circulated 15,925,000 16,524,292 15,144,804 15,337,032 14,983,679
Art exhibitionspresented 52 46 27 52 60
Youth in sports programs 64,328 53,422 55,752 61,947 61,876
Senior club members 14,125 15,800 10,770 12,393 12,252
Fact at a Glance
0
1,000,000
2,000,000
3,000,000
4,000,000
2009 2010 2011 2012 2013
Cultural and Educational Attendance by Fiscal YearZoo Educational Exhibits ObservatoryEl Pueblo Programs Library Cultural ProgramsCity Theaters
Five Year History of Revenues, Expenses and Positions
(Accrual Basis)
15
Source: FY 2013 CAFR pages 366-377
Infrastructure Information(FY 2013 CAFR pages 378-381)
Asset Number of
Acres of Beach Land 232
Acres of City Park Land (Including Beaches) 16,001
Libraries 73
General Governmental Activities III
General G
overnment
4,000
4,500
5,000
5,500
6,000
6,500
$0
$500
$1,000
$1,500
$2,000
$2,500
2009 2010 2011 2012 2013
posi
tion
auth
oriti
es
$ m
illio
ns
Revenues Expenses Position Authorities
Five Year History ofRevenues, Expenses and Positions
(Accrual Basis)
16
Mayor Council Controller City Attorney City Administrative
Officer
City Clerk Employee Relations Board Ethics Commission Finance General Services Information Technology
Neighborhood Empowerment
Personnel Capital Finance
Administration General City Purposes
Human Resource Benefits
Liability Claims Unappropriated
Balance Water & Electricity
General Government Activities encompass bothdepartmental and non-departmental expensesspanning elected offices, administrative and supportservices, and broad citywide expenditure categories.
General Governmental Activities III
Airports
Selected Indicators(FY 2013 CAFR pages 366-377)
3,400
3,450
3,500
3,550
3,600
3,650
3,700
3,750
3,800
$0
$200
$400
$600
$800
$1,000
$1,200
2009 2010 2011 2012 2013
posi
tion
auth
oriti
es
$ m
illio
ns
Revenues Expenses Position Authorities
2009 2010 2011 2012 2013
Aircraft movements (thousands) 1,049 1,025 989 976 939
Passengers (millions) 62 63 65 67 69
Air cargo (thousand tons) 2,018 2,242 2,296 2,366 2,400
Fact at a GlanceTop 6 Busiest Airports by Passenger Traffic CY 2012
(in millions)
020406080
100120
Atlanta (ATL)
Beijing (PEK)
London (LHR)
Tokyo (HND)
Chicago (ORD)
Los Angeles (LAX)
Total Passengers
Five Year History of Revenues, Expenses and Positions
(Accrual Basis)
17
Source: http://en.wikipedia.org/wiki/World's_busiest_airports_by_passenger_traffic#2012_statistics
Infrastructure Information(FY 2013 CAFR pages 378-381)
Asset Number of
Airports 3
Business Type Activities IV
Harbor
Selected Indicators(FY 2013 CAFR pages 366-377)
935
940
945
950
955
960
965
970
975
$0$50
$100$150$200$250$300$350$400$450$500
2009 2010 2011 2012 2013po
sitio
n au
thor
ities
$ m
illio
ns
Revenues Expenses Position Authorities
Indicator 2009 2010 2011 2012 2013
Inbound tonnage (million tons) 94 88 94 98 93
Outbound tonnage (million tons) 66 67 68 75 72
Containerized cargo volume (millions of Twenty-foot Equivalent Units) 7 7 8 8 8
Vessel arrivals 2,322 2,124 2,236 2,100 2,089
Cruise passengers 990,965 802,899 667,434 515,827 355,875
Fact at a Glance
Los Angeles39%
Long Beach32%Oakland
11%
Seattle7%
Tacoma9%
All Others2%
% of West Coast Container Market Share for Fiscal Year 2013
Five Year History of Revenues, Expenses and Positions
(Accrual Basis)
18
Source: http://www.portoflosangeles.org/Publications/Financial_Statement_2013.pdf
Infrastructure Information(FY 2013 CAFR pages 378-381)
Asset Number of
Waterfront (miles) 43
Major Container Terminals 8
Cargo Terminals 24
Business Type Activities IV
Water and Pow
er
Selected Indicators(FY 2013 CAFR pages 366-377)
8,500
8,600
8,700
8,800
8,900
9,000
9,100
9,200
9,300
$0$500
$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500$5,000
2009 2010 2011 2012 2013
posi
tion
auth
oriti
es
$ m
illio
ns
Revenues Expenses Position Authorities
Indicator 2009 2010 2011 2012 2013
Gallons water sold (billions) 189 166 169 170 178
Average number of water customers (thousands) 666 659 667 674 676
Kilowatt hours sold (billions) 25 26 25 25 26
Average number of energy customers (thousands) 1,452 1,447 1,461 1,471 1,479
Fact at a Glance
$0.00
$0.05
$0.10
$0.15
2008 2009 2010 2011 2012 2013
Direct Rate per Kilowatt Hourby Fiscal Year
Residential Commercial / Industrial
Five Year History of Revenues, Expenses and Positions
(Accrual Basis)
19
Source: FY 2013 CAFR page 347
Infrastructure Information(FY 2013 CAFR pages 378-381)
Asset Number of
Power Transmission Lines (miles) 3,632
Water Distribution Pipe (miles) 7,246
Business Type Activities IV
Sewer
Selected Indicators(FY 2013 CAFR pages 366-377)
$480
$500
$520
$540
$560
$580
$600
2009 2010 2011 2012 2013
$ m
illio
ns
Revenues Expenses
Indicator 2009 2010 2011 2012 2013
Wastewater treatment (Million Gallons per Day) 451 393 384 398 398
Wastewater reclaimed (MillionGallons per Day) 78 81 68 62 72
Fact at a Glance
*Bureau of Sanitation positions shown under Health & Sanitation category
Five Year History of Revenues and Expenses*
(Accrual Basis)
20
Source: http://lacitysan.org/fmd/ssc1.htm
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
2013 2014 2015 2016 2017 2018
Basic Sewer Service Charge Rate
Rate/Hundred Cubic Feet
Infrastructure Information(FY 2013 CAFR pages 378-381)
Asset Number of
Sewers (miles) 6,700
Stormdrain Pipe Mainline (miles) 1,200
Business Type Activities IV
Los Angeles Convention Center
Operational Figures(FY 2013 CAFR pages 366-377)
0
20
40
60
80
100
120
140
160
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2009 2010 2011 2012 2013po
sitio
n au
thor
ities
$ m
illio
ns
Revenues Expenses Position Authorities
Indicator 2009 2010 2011 2012 2013
Scheduled exhibit hall events 161 161 149 137 140
Repeat events hosted 274 297 304 281 284
Exhibit Halls
Five Year History of Revenues, Expenses and Positions
(Accrual Basis)
21
Infrastructure Information
Asset Number of
Exhibit Space (sq. ft.) 720,000
Business Type Activities IV
GlossaryAccrual Basis is accounting for transactions when they occur. Revenuesare recorded when earned or when the City has a right to receive therevenues. Expenses are recorded when incurred.
Adopted Budget is the Mayor and Council approved plan of financialactivity for a specified fiscal year indicating all planned revenues andappropriations for the year.
Annual Community Financial Report (ACFR) is a supplemental overviewof the Citys Comprehensive Annual Financial Report published by theControllers Office.
Appropriation Authority is the legal authority to incur obligations andexpend up to a budgeted amount for a stated purpose. Totalappropriation authority includes the adopted budget and actions takenby Mayor and Council during the year to amend the adopted budget.
Assets are what the City owns.
Budget Stabilization Fund was created to prevent overspending duringprosperous years and provide resources to help maintain service levelsduring years of slow revenue growth or declining revenue. CharterAmendment P established the Budget Stabilization Fund in the CityTreasury and authorized the requirements for transfers or expendituresfrom the fund as established by ordinance.
Business-type Activities are functions intended to recover all (or inlarge part) costs through user fees and charges.
Capital Improvement Expenditure Program (CIEP) constitutesexpenditures for the acquisition, construction, expansion orrehabilitation of the Citys physical plant (such as streets, sewers, andstorm drains) and facilities (such as fire stations, police stations, andlibraries).
Cash Basis (or Budget Basis) accounting records revenues andexpenditures when cash is received or paid.
Commercial Paper notes lease financing program supplements theMICLA equipment and real property lease program, and allows MICLAto access financial markets quickly; to obtain flexible, short-termmaturities; to borrow only those amounts needed as invoices arereceived; and to borrow at more favorable rates.
Comprehensive Annual Financial Report (CAFR) is published annuallyby the City Controller on the Citys financial condition and results ofoperation at the conclusion of the fiscal year. The report is prepared toconform to Generally Accepted Accounting Principles (GAAP) forgovernmental units and audited in accordance with generally acceptedauditing standards by a firm of licensed certified public accountants.
Debt Policy is an adopted formal debt policy of the City establishingguidelines for the structure and management of the Citys debtobligations. These guidelines include both a target and ceiling forcertain debt ratios to be used for planning purposes.
Department is a major administrative division of the City that indicates overall management responsibility for an operation or group of related operations within a functional area.
Encumbrance is an obligation or commitment to pay for a good or service. An example of an encumbrance is ordering a car and setting aside funds to pay for the car.
Expenditure is an actual payment. An example of an expenditure is writing a check to pay for the car.
Fiscal Year (FY) is a twelve-month period of time to which the annual budget applies and at the end of which the City determines its financial position and the results of its operation. The Citys fiscal year begins on July 1 of the calendar year and ends on June 30 of the following year.
Fund is a fiscal entity with assets, liabilities, revenues and expenditures that are segregated for carrying out a specific purpose or activity.
Generally Accepted Accounting Principles (GAAP) is a set of accounting principles, standards, and procedures used to compile financial statements.
22
Glossary V
GlossaryGeneral Fund is for deposit of general receipts which are not restricted, such as property, sales and business taxes and various fees.
General Obligation Bonds are voter authorized (by two-thirds vote) and payable from proceeds of taxes on taxable secured and unsecured property within the City and collected by the County General Obligation bonds are paying for such projects as library, police, and fire facilities.
Governmental Activities are functions principally supported by taxes and intergovernmental revenues.
Government-Wide is a broad overview of the Citys finances comprised of Governmental and Business-Type activities across all sources of funds.
Governmental Accounting Standards Board (GASB) is an independentorganization that establishes standards of accounting for U.S. state andlocal government.
Government Finance Officers Association (GFOA) is an organizationaimed at enhancing and promoting the professional management ofgovernments for the public benefit by identifying and developingfinancial policies and best practices and promoting their use througheducation, training, and leadership.
Judgment Obligation Bonds are issued under State law to finance an obligation imposed by law. Judgment Obligation Bonds are secured by the General Fund.
Liabilities are what the City owes.
Net Position is the difference between the Citys assets and liabilities, including deferred outflows/inflows of resources.
Position Authority is an approved position that may be filled with a full-time employee. Position authority is not an indicator of employment level.
Reserve Fund is the fund in which general unrestricted cash is set aside outside the budget for unforeseen expenditures and emergencies.
Restricted refers to funds that are not available for general use because they are set aside for a specific purpose.
Revenue is cash or credits the City receives during the fiscal year as income to finance general or restricted operations. This includes items such as taxes, fees from services, interest earnings, and grants.
Revenue Bonds are bonds payable exclusively from earnings of the enterprise and/or special revenue funds.
Special Assessment Bonds are bonds payable from the proceeds of special assessments levied against certain properties that benefited from the proceeds of the bonds.
Special Purpose Funds account for proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes.
Unrestricted refers to funds available for general use.
23
Glossary V
Credits & Considerations
24
IMAGE CREDITSAll Images listed are licensed and used under Creative Commons licenseArchitectural History of Los Angeles. Courtesy of Jericl Cat. Flickr Link.LA City Hall from DWP. Courtesy of Valli_Mark. Flickr Link.City Hall. Courtesy of Felix Tsao. Flickr Link.Cargo into Sunlight. Courtesy of Bridget Coila. Flickr Link.jan 2012 13191. Courtesy of Paul Bailey. Flickr Link.City of Los Angeles Sanitation Truck. Courtesy of Navymailman. Flickr Link.Los Angeles City Hall. Courtesy of Channone Arif. Flickr Link.
Villaraigosa. Courtesy of Terminals & Gates. Flickr Link. Modified text, rotate 180.Los Angeles City Hall Historical Postcards. Various. Courtesy of MCAD Library. Flickr Link.See Something or Say Something Los Angeles. Courtesy of Eric Fischer. Flickr Link.LAPD (45/465). Courtesy of John Liu. Flickr Link.A day of Los Angeles Metro. Courtesy of Eric Fischer. Flickr Link.Los Angeles. Two images Courtesy of Tony Nugary. Flickr Link.
While this report is summarizing and condensing the 2013 Comprehensive Annual Financial Report (CAFR) of the City of Los Angeles, this is not an audited document and contains some information supplemental to the CAFR. Much ofthe CAFR is produced from information provided by component units and departments of the City. Further detailed financial statements are available from the websites of various entities presented herein. Interested stakeholders areencouraged to view the full CAFR.
Credits & Considerations VI
Special thanks to Special Assistant Juan Lopez for his dedication and hard work in putting this report together.
SFRvCoverPagevFinal6Slide Number 1Slide Number 2Slide Number 3Slide Number 4
SFRvFinal4Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21Slide Number 22Slide Number 23Slide Number 24Slide Number 25