Page 343 - 2022-23 Blue Book Vol 2

CAPITAL FINANCE ADMINISTRATION FUND

BASIS FOR THE PROPOSED BUDGET

The 2022-23 Proposed Budget for the Capital Finance Administration (CFA) Fund relates to current year funding
as follows:

Amount % Change

2021-22 Adopted Budget $ 251,986,609

2022-23 Proposed Budget $ 256,146,081

Change from 2021-22 Budget $ 4,159,472 1.7%

The CFA Fund is a special purpose fund established to consolidate long-term City debt financing program
expenditures, excluding general obligation bonds and revenue bonds. These financing programs mostly use a
lease or "lease purchase" paid from General Fund appropriations and the sale of public securities (either lease
revenue bonds, notes, or certificates of participation) to acquire and improve various facilities and capital
equipment items for use by City departments.

The City Administrative Officer administers the CFA. Budgeted within the CFA Fund are the lease payments
required by each financing's lease and trust indenture, as well as any trustee fees or other administrative
expenses required under the terms of the financing. All unencumbered balances remaining at the end of the
fiscal year revert to the Reserve Fund. All items within this budget are a requirement of the respective leases and
trust indentures. The financings were primarily issued through the Municipal Improvement Corporation of Los
Angeles (MICLA).

BUDGET HIGHLIGHTS:

The Proposed Budget reflects the following line items:
1. The final lease payments on the MICLA Lease Revenue Refunding Bonds, Series 2015-A (Los Angeles
Convention Center) in the amount of $16.58 million will be paid in 2022-23, which represents a $34.08
million decrease from the 2021-22 Adopted Budget (line items no. 4 and 5). In anticipation of the potential
annual debt service payments associated with the Los Angeles Convention Center Expansion Project,
$34.08 million is added in 2022-23 and $50 million annually thereafter (line item no. 6).

2. The MICLA Lease Revenue Bonds, Series 2021-C (Capital Equipment and Real Property) were issued in
December 2021 to refinance MICLA commercial paper notes used to pay for capital equipment and
capital improvements to City facilities. The lease payments are reflected on the following page as line
item no. 24.

3. The final lease payments on the MICLA Certificates of Participation, Series 2002 AS (Pershing Square
Refunding) and MICLA Lease Obligations, Series 2011-A (Qualified Energy Conservation Bonds) were
paid in 2021-22 (line items no. 1 and 3).

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