Page 389 - FY 2021-22 Blue Book Volume 2

LIABILITY CLAIMS

BASIS FOR THE PROPOSED BUDGET

The 2021-22 Proposed Budget for Liability Claims relates to current year funding as follows:

Amount % Change

2020-21 Adopted Budget $ 87,922,072*

2021-22 Proposed Budget* $ 87,370,072

Change from 2020-21 Budget $ (552,000)* (0.01%)

*The 2021-22 Proposed Budget also sets aside an additional allocation of $20.00 million in the Unappropriated Balance,
Liability Claims line item, for a total of $107.37 million in 2021-22.

The 2021-22 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. The City Council, with concurrence of the Mayor, must approve claims or judgments
over $100,000.

The 2021-22 Proposed Budget includes funding in the amount of $87,370,072 for the Liability Claims Account. Of this
amount, $80,000,000 is from the General 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 2020-21, funding in the amount of $87,922,072 for
liability payouts was appropriated in two accounts and assigned to specific payout accounts to track expenditures. The
funding reduction by $552,000 in 2021-22 reflects the transfer of oversight of Independent Living Center of Southern
California, et al. v. City of Los Angeles, et al. matters to the Housing and Community Investment Department.

The 2020-21 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.

2019-20 2020-21 2020-21 2021-22
Actual Adopted Estimated Proposed
Account Name Expenditures Budget Expenditures Budget
Fire Liability Payouts $ 1,769,464 $ - $ 190,000 $ -
General Services Liability Payouts 574,500 - - -
Police Liability Payouts 33,452,523 - 20,651,000 -
Public Works, Engineering Liability Payouts 6,336,619 - 800,000 -
Public Works, Sanitation Liability Payouts* 23,535,015 7,370,072 3,646,000 7,370,072
Public Works, Street Services Liability Payouts 16,965,203 - 5,944,000 -
Recreation and Parks Liability Payouts 725,000 - 2,250,000 -
Transportation Liability Payouts 12,456,458 - 7,895,000 -
Miscellaneous Liability Payouts 31,039,522 80,552,000 25,672,000 80,000,000
Total** $ 126,854,304 $ 87,922,072 $ 67,048,000 $ 87,370,072

* 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
2019-20 Actual Expenditures include a transfer from the Unappropriated Balance, Reserve for Extraordinary Liability, and appropriations for 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.

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