Page 53 - FY 2021-22 Supporting Information

2021-22 PROPOSED BUDGET
SUMMARY OF CHANGES TO GENERAL FUND REVENUE FROM PRIOR YEAR
Economy-Sensitive and Other
(Thousand Dollars)

2021-22 Proposed Change
2020-21 Economy Other 2021-22
Budget Sensitive* Proposed
Property Tax $ 2,297,080 $ 103,170 $ - $ 2,400,250
Property Tax 1% 1,758,000 71,650 - 1,829,650
VLF Replacement 539,080 31,520 - 570,600
Redirection of ex-CRA Tax Increment Monies 95,900 13,010 3,080 111,990
Departmental Revenue 1,335,289 (32,433) (94,200) 1,208,656
Utility Users Tax 614,620 (19,220) - 595,400
Electric Users Tax (EUT) 434,820 (7,120) - 427,700
Gas Users Tax 66,400 6,300 - 72,700
Communications Users Tax (CUT) 113,400 (18,400) - 95,000
Sales Tax 557,055 49,555 - 606,610
Business Tax 686,540 22,060 - 708,600
Transient Occupancy Tax 244,860 (68,060) - 176,800
Power Revenue Transfer 224,100 1,719 - 225,819
Documentary Transfer Tax 215,835 4,070 - 219,905

Parking Fines 140,477 (16,856) - 123,621
Parking Occupancy Tax 102,000 (2,663) - 99,337
Franchise Income 81,226 1,244 12,147 94,617
Special Parking Revenue Transfer 27,721 (19,244) - 8,477
Interest 34,613 (15,410) - 19,203
Grants Receipts 12,521 444 29,104 42,069
Tobacco Settlement 10,615 - (437) 10,178
Residential Development Tax 3,693 1,107 - 4,800
State Motor Vehicle License Fees 3,198 (256) - 2,942

American Rescue Plan Fund Transfer - - 677,224 677,224
Total General Fund Receipts $ 6,687,342 $ 22,238 $ 626,918 $ 7,336,498

* Economy-sensitive revenues include growth in property, utility, business, sales, documentary transfer, transient occupancy,
parking occupancy, and residential development tax revenues, as well as other revenues detailed above. The decline in utility
users tax is partly due to pandemic-related delinquencies in EUT and continuing downward trends in landline use and cellular
plan pricing in CUT. After two years of decline, transient and parking occupancy tax reflect the impact of pandemic travel
restrictions, closures, and recession. Property, sales, and business taxes, which are also expected to fall short of the 2020-21
Budget, reflect assumptions for a quicker rebound in receipts. Documentary and residential development tax growth have been
minimally impacted by the pandemic. Proceeds from the sale of former CRA surplus property is estimated at $3.1 million and is
considered a one-time receipt.
Departmental revenues (consisting of reimbursements for services and receipts from licenses, permits, fees and fines) reflect
economic and non-economic changes that have reduced receipts from the 2020-21 Adopted Budget. Economic changes include
those for various activities impacted by the pandemic such as LA Metro services, plan check, permitting, licensing, special event,
and parking. Lower receipts are expected during the recovery period as services return to pre-pandemic levels. Non-economic
changes include: net decreased reimbursements from special funds and proprietary departments reflecting changes to CAP rates,
anticipated vacancies, and budgeted salary assumptions; reduced reimbursements from LAWA for construction services; reduced
reimbursements from special funds at partial cost recovery; decreased ambulance service reimbursements with the state's action
to hold Ground Emergency Medical Transportation (GEMT) reimbursements; additional revenue from increases to ambulance,
Fire Department, and City Planning fees; and one-time receipts from escheatments and salvage ($2.4 million) and transit shelter
income ($3.0 million).

Economic changes to miscellaneous revenues include: a reduced transfer from the Special Parking Revenue Fund and
decreased parking fine revenue reflecting the drop in demand for parking and reduced parking enforcement during the pandemic;
reduced investment earnings due to the lower economic activity; and a Power Revenue Fund transfer based on anticipated 2020-
21 fund operating revenue.

Other changes include: $677.2 million federal stimulus funds from the American Rescue Plan; one-time grant receipts from FEMA
and state for the reimbursement of pandemic response costs ($26.1 million) and a Fire Department grant for breathing apparatus
equipment ($3.0 million); and the redirection of cable franchise fees to the GeneralFund.

31