Page 455 - FY 2022-23 Proposed Budget

March 1, 2022

Honorable Mayor Eric Garcetti
Honorable Members of the City Council

Re: Revenue Forecast Report

Each year, in accordance with City Charter Section 311(c), my office submits a Revenue
Forecast Report, which includes information gathered from City departments, recent regional
economic reports and meetings with local economists. This report covers updated revenue
estimates for the remainder of the current fiscal year, ending June 30, 2022, and projections for
fiscal year 2023. Although forecasts inherently involve uncertainty, this report offers our best
estimates and seeks to promote responsible budgeting in the fiscal year ahead.

This fiscal year

The City’s adopted budget this fiscal year, FY 22, totals $11.48 billion. Two-thirds of that, $7.5
billion, consists of General Fund revenues, while the rest, close to $3.98 billion, comes from
numerous special purpose funds and available balances. Our updated estimate of General
Fund receipts for the current fiscal year is $7.55 billion, 0.6% more than the budgeted amount
and 7.1% above the last fiscal year. This means the General Fund is projected to end the fiscal
year with a $42 million revenue surplus. We anticipate that transient occupancy tax revenues
will increase by 97% over last fiscal year, parking occupancy tax revenues will increase by 73%,
sales tax revenues will increase by 24% and documentary transfer tax receipts will rise by 22%.
Utility user’s tax receipts continue to fall this fiscal year by 4%, and revenues from licenses,
permits, fees and fines will fall by 3.5%.

Next fiscal year

While the economy is continuing to recover from the ongoing public health crisis, my office is
cautiously optimistic that the direct economic impacts of the pandemic — business closures,

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