Page 323 - FY 2021-22 Blue Book Volume 2

CAPITAL AND TECHNOLOGY IMPROVEMENT

EXPENDITURE PROGRAM

BASIS FOR THE PROPOSED BUDGET

SUMMARY

The 2021-22 Proposed Budget for the Capital and Technology Improvement Expenditure Program (CTIEP) relates
to current year funding as follows:

General Fund Special Funds Total Other Funds**
2020-21 Adopted Budget* $ 8,930,430 $ 346,768,984 $ 355,699,414 $ 138,303,034
2021-22 Proposed Budget $ 101,694,771 $ 357,855,813 $ 459,550,584 $ 133,390,240
Change from 2020-21 Budget $ 92,764,341 $ 11,086,829 $ 103,851,170 $ (4,912,794)
% Change 1,038.7% 3.2% 29.2% (3.6%)

** The 2020-21 Adopted Budget amount does not include Technology projects.
* Other funds consist of General Obligation (GO) Bonds and Municipal Improvement Corporation of Los Angeles (MICLA) financing. The
amounts from these funds are provided for informational purposes only.

The CTIEP provides for the use of special funds for eligible capital and technology infrastructure improvements and
General Fund financing of necessary capital improvements for which special fund financing is unavailable or
ineligible.

The City’s Financial Policies recommend the programming of 1.5 percent of General Fund revenue to fund capital
or infrastructure improvements. For 2021-22, General Fund revenues are projected to be $7.34 billion, resulting in
a 1.5 percent target totaling $110.1 million. The 2021-22 Proposed CTIEP General Fund financing totals $101.7
million. An additional $22.9 million in General Fund is provided for sidewalk repairs, and $27.5 million in General
Fund is provided for the Pavement Preservation Program. Therefore, the Proposed Budget allocates a total of
$152.1 million or 2.1 percent in General Fund for capital, infrastructure, and technology improvements.

The projects funded in the CTIEP were selected on a priority basis using criteria such as: (1) risk to health and
safety; (2) compliance with legal, regulatory, or other policy mandated requirements; (3) resilience and
sustainability; (4) impact to city operations, asset condition, annual recurring costs and asset longevity; and, (5)
equitable community investment and economic sustainability.

Following a summary section, the CTIEP has been separated into four sections, as follows:

Clean Water

This category includes the Clean Water projects funded from the Sewer Construction and Maintenance Fund. Clean
Water has been developed as a separate program to reflect the conversion to an enterprise operation to support
revenue bonds.

Municipal Facilities
This category includes the construction or improvement of City-owned structures and facilities such as parks,
libraries, fire and police stations, yards, and shops. Funds for these projects are provided from the General Fund
and various special funds. Other funds identified in the summary above include lease financing through the
Municipal Improvement Corporation of Los Angeles (MICLA).

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