Page 405 - FY 2020-21 Blue Book Volume II

ETHICS COMMISSION

PUBLIC MATCHING CAMPAIGN FUNDS TRUST FUND

BASIS FOR THE PROPOSED BUDGET

The 2020-21 Proposed Budget for the Ethics Commission Public Matching Campaign Funds Trust Fund relates to
current year funding as follows:

Amount % Change

2019-20 Adopted Budget $ 3,367,232

2020-21 Proposed Budget $ 3,431,848

Change from 2019-20 Budget $ 64,616 1.9%

Charter Section 471(c)(1) requires an annual General Fund appropriation to the Public Matching Campaign Funds
Trust Fund based upon the present day value of $2 million in 1991 dollars. The present day value is determined
using the Consumer Price Index (CPI) (for all consumer items other than housing) for the Los Angeles-Long Beach-
Anaheim metropolitan statistical area. The annual appropriation is subject to change each year adjusted by the CPI.
Accordingly, the required appropriation amount for 2020-21 is $3,431,848.

Charter Section 471(c)(1) provides that the City Council, by two-thirds vote, may reduce or withhold the Trust Fund’s
annual appropriation provided that: (1) the City Council has declared a fiscal emergency by resolution for that fiscal
year; (2) the fund balance is at least $8 million in 1991 dollars adjusted to the CPI; and (3) the City Council has
considered the Ethics Commission’s analysis on projected costs and public funding needs for the next four years.
For 2019-20, $8 million in 1991 dollars adjusted to the CPI is $13,727,392.

Charter Section 471(c)(2) provides that City Council, by two-thirds vote, may temporarily transfer funds from the
Trust Fund to meet obligations of the City provided that: (1) the City Council has declared a fiscal emergency by
resolution for that fiscal year; (2) the City Council has considered the Ethics Commission’s analysis on projected
costs and public funding needs for the next four years; and (3) the funds transferred are limited to funds above the
Trust Fund balance of $8 million in 1991 dollars adjusted to the CPI. The transferred funds shall be reimbursed to
the Trust Fund upon determination from the Ethics Commission that the funds are needed or before the end of the
next fiscal year, whichever is earlier.

The Ethics Commission projects payouts in 2019-20 of $4 million for the regular March 2020 primary elections,
which will result in a fund balance of approximately $18.1 million on June 30, 2020.

2020-21 Minimum Fund Balance required to reduce
or withhold annual appropriation $13,727,392

Estimated Cash Balance June 30, 2020: 18,100,000
Appropriation for 2020-21: 3,431,848
Estimated July 1, 2020 Fund Balance: $21,531,848

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