Page 47 - FY 2021-22 Supporting Information

2021-22 BUDGET
FOUR-YEAR GENERAL FUND BUDGET OUTLOOK (OUTLOOK) FOOTNOTES

(20) One-time Costs: The deletion line reflects the practice of deleting programs and costs that are limited-term
and temporary in nature each year. Continued and new one-time funding is included in the “Add One-Time Costs”
line. The Outlook deletes funding for all one-year projects in 2022-23 and retains the remaining balance for
multiyear projects that will not become part of the General Fund base.

(21) Comprehensive Homeless Strategy: This amount represents the increase to the General Fund appropriation
for homelessness-related services and expenditures within the context of the City's Comprehensive Homeless
Strategy. The 2022-23 amount deletes one-time 2021-22 expenditures.

(22) Unappropriated Balance (UB): The 2022-23 amount eliminates one-time UB items, and continues ongoing
ones.

(23) Capital and Technology Improvement Expenditure Program (CTIEP) – Municipal Facilities and Physical Plant:
The Proposed 2021-22 Budget includes an increase in funding from the General Fund of $31.9 million for physical
plant related capital projects and $20.2 million for municipal facilities. The 2022-23 amount deletes funding for
one-year projects. The Outlook assumes increased funding in future years to meet the policy spending level of
1.5 percent of General Fund revenue for capital and technology projects.

(24) CTIEP – Sidewalk: Pursuant to the settlement in the case of Willits v. City of Los Angeles, the City is
responsible for investing $31 million annually for sidewalk improvements through 2047, with adjustments of 15.3
percent every five years to account for inflation and material price increases. The 2021-22 increase of $6.8 million
in General Fund appropriations reflects funds provided for sidewalk repair work for the Department of Water and
Power and the Library Department, which will be reimbursed by those departments. The 2022-23 increase of $6.8
million will increase the General Fund appropriation to $29.7 million annually, with the balance of the investment
covered by other sources of funds. This increase reflects both the required adjustment to the minimum obligation
and the recognition that proprietary departments’ expenditures will decrease as sidewalk repairs are completed
at their facilities.

(25) CTIEP – Pavement Preservation Program: The Pavement Preservation Program increase of $15.3 million in
2021-22 reflects the restoration of General Fund to cover the costs shifted to special funds on a one-time basis in
2020-21. Future years both restore funding for one-time efficiencies and assume that cost increases to maintain
service levels that exceed the capacity of special funds are fully borne by the General Fund.

(26) Appropriation to the Reserve Fund: The appropriation to the Reserve Fund in 2020-21 is $50 million, which
is $37.7 million more than the 2020-21 appropriation. No appropriation is included in subsequent years.

(27) Appropriation to the Budget Stabilization Fund (BSF): Pursuant to the policy, when the combined annual
growth for seven General Fund tax revenue sources exceeds the Average Annual Ongoing Growth Threshold,
the budget must include a deposit into the BSF. When growth of these receipts falls short of the Average Annual
Ongoing Growth Threshold, the Budget may include a withdrawal from the fund. Based on the projected growth
in economically sensitive revenues, the projected transfer to the BSF is $23.7 million in 2022-23 and $2.3 million
in 2023-24.

(28) Net – Other Additions and Deletions: The 2021-22 amount includes one-time reductions and efficiencies and
ongoing changes and new regular positions added to the base budget. The significant reductions include the
deletion of 1,146 regular authority positions through the Separation Incentive Program (SIP) and one-time
reductions taken as an alternative to deleting other position authorities that were vacated due to SIP. Among the
significant increases are appropriations of $24 million to Recreation and Parks and $13 million to the Library. The
remaining balance reflects new and increased ongoing costs to a variety of departmental programs. Subsequent
years include projected expenditures for the restoration of one-time expenditure reductions, structured payments,
hotel development incentive agreements, LAPD vehicles, and the recycling incentives program and increased
appropriations to Recreation and Parks and the Library.

(29) Total Budget Gap: The Total Budget Gap reflects the projected surplus (deficit) in each fiscal year included
in the Outlook.

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