Page 15 - FY 2021--22 Revenue Outlook

were the cause of much of the decline, increasing delinquencies and tax relief
measures also contributed to shortfalls.

Other pandemic-related losses identified in current year revenue include reduced
city services and reimbursements across multiple departments (-$184.5 million);
decreased parking demand, enforcement and parking-related receipts
(-$80.1 million); reduced earnings on investments ($9.0 million); and less
2019-20 operating revenue to fund the 2020-21 Power Revenue Fund transfer
($5.7 million). Offsetting these sizeable revenue loses are smaller surpluses in
property tax increment, documentary transfer and residential taxes ($13.6
million), as well as other miscellaneous receipts ($2.3 million) that have not been
impacted by pandemic.

Federal relief funds has spared the City from making drastic spending cuts to
address the $544.0 million shortfall. This funding includes the transfer of
$125 million in CARES Act funding to the General Fund to repay the Building
Permit Trust Fund for front-funding pandemic response efforts; $78.4 million in
estimated FEMA reimbursements for eligible disaster response expenditures;
and $677.3 million in ARP funds anticipated before the close of the fiscal year.

2021-22 Proposed General Fund Revenue

Total proposed General Fund revenue for 2021-22 is $7.33 billion, which
includes receipts from one-time federal funding sources totaling $703.3 million,
and represents an increase of 9.7 percent above adopted revenue and 4.5
percent above revised. Excluding one-time federal receipts from the revised
2020-21 and proposed 2021-22 estimates, total General Fund revenue for
2021-22 is closer to $6.63 billion, representing a decline of -0.8 percent from the
2020-21 adopted budget, but an increase of 8.0 percent above the revised
estimates representing the recovery of the City’s core revenue base.

Federal funding included in the proposed budget includes FEMA reimbursements
for pandemic response efforts ($26.1 million) and the second tranche of ARP
funding ($677.2 million). Other one-time receipts include a $3 million Fire
Department grant for breathing apparatus equipment, $3.1 million in CRA/LA
property sale proceeds, $3 million in transit shelter income, and $2.4 million from
salvage sales and escheatments, to total $714.8 million.

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