Page 303 - FY 2021-22 Blue Book Volume 2

CAPITAL FINANCE ADMINISTRATION FUND

BASIS FOR THE PROPOSED BUDGET

The 2021-22 Proposed Budget for the Capital Finance Administration (CFA) Fund relates to current year funding
as follows:

Amount % Change

2020-21 Adopted Budget $ 240,004,935

2021-22 Proposed Budget $ 253,986,609

Change from 2020-21 Budget $ 13,981,674 5.8%

The CFA Fund is a special purpose fund established to consolidate long-term City debt financing program
expenditures, excluding general obligation bonds and revenue bonds. These financing programs mostly use a
lease or "lease purchase" paid from General Fund appropriations and the sale of public securities (either lease
revenue bonds, notes, or certificates of participation) to acquire and improve various facilities and capital
equipment items for use by City departments.

The City Administrative Officer administers the CFA. Budgeted within the CFA Fund are the lease payments
required by each financing's lease and trust indenture, as well as any trustee fees or other administrative
expenses required under the terms of the financing. All unencumbered balances remaining at the end of the
fiscal year revert to the Reserve Fund. All items within this budget are a requirement of the respective leases and
trust indentures. The financings were primarily issued through the Municipal Improvement Corporation of Los
Angeles (MICLA).

BUDGET HIGHLIGHTS:

The Proposed Budget reflects the following line items:

1. The final lease payments on the MICLA Lease Revenue Bonds, Series 2010-A (Capital Equipment),
MICLA Lease Revenue Bonds, Series 2010-B (Capital Equipment), and MICLA Street Lighting private
placement, Series 2013 will be paid in 2020-21 (line items no. 2, no. 3, and no. 9).

2. The MICLA Lease Revenue Bonds, Series 2012-A (Capital Equipment), MICLA Lease Revenue Bonds,
Series 2012-B (Real Property), MICLA Lease Revenue Bonds, Series 2012-C (Real Property), and
MICLA Lease Obligations, Series 2014 (Capital Equipment) (line items no. 6 through no. 8 and no. 12)
were refunded in August 2020. The refunding is reflected as the MICLA Lease Revenue Bonds, Series
2020-B (Refunding) (Real Property) and MICLA Lease Revenue Bonds, Series 2020-C (Refunding -
Taxable) (Real Property) (line items no. 30 and no. 31).

3. The MICLA Street Lighting, Series 2020 private placement (direct loan) was completed in November
2020 to finance improvements to the City’s street lighting system (line item no. 28). The loan will be
repaid from the Street Lighting Maintenance Assessment Fund.

4. The MICLA Lease Revenue Bonds, Series 2014-A (Real Property), MICLA Lease Revenue Refunding
Bonds, Series 2014-B (Real Property), MICLA Lease Revenue Bonds, Series 2019-A (Capital
Equipment), and MICLA Lease Revenue Refunding Bonds, Series 2019-B (Real Property) (line items no.
10, no. 11, no. 26, and no. 27) were refunded in March 2021. The refunding is reflected as the MICLA
Lease Revenue Refunding Bonds, Series 2021-A (Capital Equipment and Real Property) (Taxable) and
MICLA Lease Revenue Refunding Bonds, Series 2021-B (Capital Equipment and Real Property) (line
items no. 32 and no. 33).

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