Page 377 - FY 2020-21 Blue Book Volume II

CAPITAL IMPROVEMENT EXPENDITURE PROGRAM

BASIS FOR THE PROPOSED BUDGET

SUMMARY

The 2020-21 Proposed Budget for the Capital Improvement Expenditure Program (CIEP) relates to current year
funding as follows:

General Fund Special Funds Total Other Funds *
2019-20 Adopted Budget $ 25,416,879 $ 428,132,311 $ 453,549,190 $ 119,050,276
2020-21 Proposed Budget $ 8,930,430 $ 346,768,984 $ 355,699,414 $ 138,303,034
Change from 2019-20 Budget $ (16,486,449) $ (81,363,327) $ (97,849,776) $ 19,252,758
% Change (64.9%) (19.0%) (21.6%) 16.2%
* Other funds consist of General Obligation (GO) Bonds and Municipal Improvement Corporation of Los Angeles (MICLA) financing. The amounts
from these funds are provided for informational purposes only.

The CIEP provides for the utilization of special funds that are restricted to the construction or improvement of
permanent facilities and General Fund financing of necessary capital improvements for which special fund financing is
unavailable or ineligible.

The City’s Financial Policies recommend the programming of one percent of General Fund revenue to fund capital or
infrastructure improvements. For 2020-21, General Fund revenues are projected to be $6.69 billion, resulting in a one
percent target totaling $66.9 million. The 2020-21 Proposed CIEP General Fund financing totals $8.9 million. An
additional $14.6 million in General Fund is provided for sidewalk repairs and $12.2 million in General Fund for the
Pavement Preservation Program. The Proposed Budget allocates a total of $35.7 million or 0.53 percent in General
Fund for capital and infrastructure improvements.

The projects funded in the CIEP were selected on a priority basis using criteria such as: (1) recognition of
environmental requirements or mitigation of health or safety hazards; (2) commitment to or coordination with the
activities of other agencies; (3) additional service requirements for growing areas; (4) participation with citizens in the
funding of assessment act projects; (5) completion or continuation of previously authorized work; (6) protection of
previous investment in public works; (7) provision of efficient facilities to support ongoing operations; and, (8)
maximization of grant funds.

The CIEP has been separated into three sections for purposes of presentation. Following the summary information is
the Municipal Facilities category, which includes the construction or improvement of City-owned structures and
facilities such as parks, libraries, fire and police stations, yards, and shops. Funds for these projects are provided from
the General Fund and various special funds. Other funds identified in the summary above include lease financing
through the Municipal Improvement Corporation of Los Angeles (MICLA).

Following the Municipal Facilities category is the Physical Plant category, which includes a variety of stormwater,
street, and street lighting projects. These projects are primarily funded by the General Fund, Measure W Local Return
Fund, Measure M Local Return Fund, Road Maintenance and Rehabilitation Program Special (SB1) Fund, Stormwater
Pollution Abatement Fund, and Street Damage Restoration Fee Fund. All of these funds will provide for the following
types of projects: flood control and pollution abatement, storm damage repair, street widening and reconstruction,
street lighting, traffic control, bikeways, and water quality improvement. Other funds identified in the summary above
include projects funded by the Proposition O General Obligation Bond which are handled outside the budget.

Following the Physical Plant category is the Clean Water category, which includes the Clean Water projects funded
from the Sewer Construction and Maintenance Fund. Clean Water has been developed as a separate program to
reflect the conversion to an enterprise operation to support revenue bonds.

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