Page 431 - FY 2020-21 Blue Book Volume II

LIABILITY CLAIMS

BASIS FOR THE PROPOSED BUDGET

The 2020-21 Proposed Budget for Liability Claims relates to current year funding as follows:

Amount % Change

2019-20 Adopted Budget $ 90,526,072*

2020-21 Proposed Budget $ 87,922,072

Change from 2019-20 Budget $ (2,604,000)* (2.88%)

The 2020-21 Proposed Budget provides funding for the payment or settlement of claims brought against the City. The Los
Angeles Administrative Code authorizes the Mayor to delegate authority to the City Attorney to settle claims and pay
judgments against the City in an amount not to exceed $50,000; an additional $50,000 (up to $100,000) is subject to the
concurrence of the Claims Board. Claims or judgments over $100,000 must be approved by the Council with the
concurrence of the Mayor.

Funding in the amount of $87,922,072 is proposed for the Liability Claims Account. Of this amount, $80,000,000 is from
the General Fund, $552,000 is from the Accessible Housing Trust Fund, $2,000,000 is from the Solid Waste Resources
Revenue Fund, and $5,370,072 is from the Sewer Operations and Maintenance Fund. In 2019-20, funding in the amount
of $90,526,072 million was appropriated in two accounts for liability payouts and assigned to specific payout accounts to
track expenditures.

The 2019-20 Estimated Expenditure amounts include approved payouts and potential payouts for matters still pending.
Adjustments to the Budget may be necessary during the year as cases reach the trial stage and judgments or settlements
are determined.

2018-19 2019-20 2019-20 2020-21
Actual Adopted Estimated Proposed
Account Name Expenditures Budget Expenditures Budget
Fire Liability Payouts $ 1,050,000 $ - $ 1,220,000 $ -
General Services Liability Payouts - - 113,000 -
Police Liability Payouts 35,180,506 - 30,488,000 -
Public Works, Engineering Liability Payouts 1,525,000 - 5,524,000 -
Public Works, Sanitation Liability Payouts* 4,829,949 10,370,072 24,026,000 7,370,072
Public Works, Street Services Liability Payouts 18,023,520 - 14,638,000 -
Recreation and Parks Liability Payouts 7,075,000 - 575,000 -
Transportation Liability Payouts 21,417,500 - 7,331,000 -
Miscellaneous Liability Payouts 14,209,874 80,156,000 30,154,000 80,552,000
Total** $ 103,311,349 $ 90,526,072 $ 114,069,000 $ 87,922,072

* Special fund payouts paid/to be paid directly by the Bureau of Sanitation special funds (Solid Waste Resources Revenue Fund and Sewer Operations
and Maintenance Fund).
** Actual and estimated expenditures may exceed budgeted amounts and include transfers to provide additional allocations to meet funding needs. The
2018-19 and 2019-20 expenditures include a transfer from the Unappropriated Balance, Reserve for Extraordinary Liability, and the monitoring fees for
Independent Living Center of Southern California, et al. v. City of Los Angeles, et al. from 2016-17 and 2017-18. The 2019-20 expenditures also include
additional allocations from the Bureau of Sanitation special funds.

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