Page 28 - 2020-21 Supporting Information Book_Revised

2020-21 PROPOSED BUDGET
CAPITAL AND INFRASTRUCTURE FUNDING POLICY

FINANCIAL POLICY
Pursuant to the City's Financial Policies, the City shall make adequate investments to maintain real property and equipment at
appropriate levels (Fiscal Policy No. 37). This policy, adopted in January 2020, replaced a longstanding policy that states that, to
the extent possible, the City shall annually budget one percent of General Fund revenue to fund capital or infrastructure
improvements. Both policies recognize the importance of maintaining the City's capital assets on a regular basis to avoid major
deferred maintenance and to extend the useful life of the asset. There is a proposal pending before the City Council to revise the
Capital Improvement Program Funding Policy. That proposal would establish, to the extent possible, an annual minimum
investment target of 1.5 percent of the General Fund revenue for City's new capital projects, maintenance of existing assets, and
information technology improvements starting in 2021-22. The one percent target remains an appropriate benchmark in the interim.

The Mayor's Proposed Budget provides $7.77 million in base-level funding from the General Fund for the Capital Improvement
Expenditure Program (CIEP) Municipal Facilities (MF). An amount of $27.93 million is provided for other infrastructure
expenditures. The total capital infrastructure appropriation is $35.7 million or 0.53 percent of the General Fund.

2019-20 Adopted 2020-21 Proposed
(millions) (millions)
Budget Policy - One Percent (1%) of General Fund Revenue $ 65.70 $ 66.87

Capital and Infrastructure Projects

Capital Improvement Expenditure Program Municipal Facilities:
Deferred Maintenance
Citywide Building Hazard Mitigation $ 0.75 $ 0.50
Citywide Elevator Repairs 0.85 0.40
Citywide Infrastructure Improvements 0.64 -
Citywide Maintenance and Improvements 1.00 0.65
Citywide Nuisance Abatement 0.82 0.42
Citywide Roof Repairs 1.30 0.50
Civic and Community Facilities 0.75 -
Community Redevelopment Agency Future Development Property Maintenance 0.18 0.12
Contaminated Soil Removal/Mitigation 1.00 0.50
Fire Life Safety Building Systems (Regulation 4) 1.10 1.10
Overhead Doors, Automatic Gates, and Awnings 0.30 0.30
Tinker Toy Lot 7 2.49 -
Zoo/LADWP Solar Resiliency Partnership Project 0.60 -
Office Development and Capital Program
Capital Program - Figueroa Plaza Building 0.20 -
Capital Program - Public Works Building 0.78 0.50
Civic Center Master Development Program Environment Impact Report 1.00 -
Municipal Buildings Energy & Water Management and Conservation 1.23 -
Public Safety Facilities and Security Upgrades
Public Safety Facilities - Animal Services 0.10 -
Public Safety Facilities - Fire 0.12 0.25
Public Safety Facilities - Police 0.19 0.08
Public Safety Facilities - Police Administration Building 0.07 -
Seismic and Bridge Improvements/Yards and Shops
Capital Program - Bureau of Street Services 0.25 -
Citywide Non-Ductile Concrete Building Ordinance Compliance 0.25 -
Sixth Street Viaduct Replacement Project - Supplemental Construction 3.85 2.20
Yards and Shops - Capital Equipment 0.68 -
Yards and Shops Master Plan Study 0.50 -
Other
One Percent for the Arts 0.10 0.25
Subtotal CIEP MF $ 21.10 $ 7.77

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