Page 429 - FY 2020-21 Blue Book Volume II

JUDGMENT OBLIGATION BONDS DEBT SERVICE FUND

BASIS FOR THE PROPOSED BUDGET

The 2020-21 Proposed Budget for the Judgment Obligation Bonds Debt Service Fund relates to current year
funding as follows:

Amount % Change

2019-20 Adopted Budget $ 6,494,500

2020-21 Proposed Budget $ -

Change from 2019-20 Budget $ (6,494,500) (100%)

The Judgment Obligation Bonds Debt Service Fund is a special purpose fund established to pay debt service on
bonds issued to finance liabilities resulting from adverse decisions by the California courts and various judgments
or stipulated judgments relating to City misconduct in the workplace, inverse condemnation incidents, and
personal injuries caused by City employees or that occurred on City property. A total of $50.9 million in bonds was
issued to settle a federal case arising from an incident involving the use of force by members of the Los Angeles
Police Department against protesters commencing on May 1, 2007 (May Day Settlement), and various judgments
or stipulated judgments as mentioned above with a final payment in 2019-20.

Debt service on these bonds is an unconditional obligation of the City.

Debt Service Budget for Outstanding Judgment Obligation Bonds

2019-20 2020-21
Adopted Proposed
Budget Budget

May Day Settlement, et al
Series 2010-A $ 6,494,500 $ -

1. May Day Settlement (Federal Case) and Various Judgments or Stipulated Judgments Against the
City (2010-A)

The 2010-A bonds were issued as a result of judgments or stipulated judgments entered against the City by the
United States District Court, Central District of California in several cases collectively known as the “May Day
Settlement” and by the Los Angeles Superior Court in several cases involving City misconduct in the workplace,
inverse condemnation incidents, and personal injuries caused by City employees or that occurred on City
property. The May Day Settlement pertains to several lawsuits filed in federal court that arose from an incident
involving the use of force by members of the Los Angeles Police Department against protesters commencing on
May 1, 2007. The final payment will occur on June 1, 2020.

Amount of Issue: $ 50,875,000
Principal Outstanding, July 1, 2020: -
Final Payment: 2019-20
2020-21 Debt Service Payment: $ -

TOTAL 2020-21 PROPOSED JUDGMENT OBLIGATION BONDS DEBT SERVICE $ -

891