Page 507 - FY 2022-23 Proposed Budget

GLOSSARY

Fire and Police Pensions: The Department that administers the provisions of the City Charter relative to service,
disability, and dependents’ pensions for members of the Fire and Police Departments and certain Harbor and
Airports Police members. The budget is independent of the City’s General Budget and it is included in Section 4
for information purposes only. The budget and supporting data are available from the Department.

Fiscal Year: The time period for the City budget, which begins on July 1 and ends on June 30 of the following year.

Function: A group of related budgetary programs across departmental boundaries and aimed at accomplishing a
broad goal or major service. The details are shown in Section 6 of the budget.

Fund: A fiscal entity with revenues and expenditures that are segregated for the purpose of carrying out a specific
purpose or activity.

General Fund: The fund for deposit of general receipts such as property, sales and business taxes, and various
fees. The General Fund also includes subfunds (primarily by department) to track appropriations and
expenditures.

General Obligation (G.O.) Bond General Obligation Bonds issued by local governments are secured by a pledge of
the issuer’s ad valorem taxing power and solely payable from ad valorem property taxes. Such bonds constitute
debt of the issuer and, in California, require approval by two-thirds vote prior to a City’s issuance.

Grant: A contribution by a government or other organization to support a particular function.

Harbor Department: The Department that, under its Board of Commissioners, is responsible for the management,
supervision, and control of the Harbor District, operates the Port of Los Angeles, operates a pilotage service, and
engages in the leasing of land and production of oil in the District. It constructs and maintains its own facilities
and controls its own funds in accordance with the City Charter. The budget is independent of the City’s General
Budget and it is included in Section 4 for information purposes only. The budget and supporting data are
available from the Department.

Indirect Cost: The additional costs of human resources benefits, facilities, communications, and liability claims for
authorized positions to perform specific work assignments. The annual budget of those departments that perform
the service provides funding for this cost.

Lease Revenue Bond: A bond from an issue that is secured by lease payments made for the use of capital
equipment or facilities either by leasing the facilities financed by the issue or the lease-leaseback of existing
facilities (an “asset transfer”). Typically, lease revenue bonds are used to finance construction of facilities used
by a state or municipality, which leased the facilities from a financing authority. Under California case law, the
state or municipality is generally obligated to appropriate funds from its general tax revenues to make lease
payments as long as it has beneficial use or occupancy of the leased asset.

Los Angeles City Employees’ Retirement System: The Department that administers the provisions of the City
Charter relative to the retirement, disability, and death benefits provided for all City employees, except the
uniformed forces of the Fire and Police Departments and the Department of Water and Power. The budget is
independent of the City’s General Budget and it is included in Section 4 for information purposes only. The
budget and supporting data are available from the Department.

Modified Cash Budget: The basis of the general budget recognizing revenues upon receipt and appropriating
planned expenditures and obligations for the fiscal year. Revenue is recognized when cash is received,
regardless of when it is earned, whereas the appropriation is made for the planned operations during the
concerned fiscal year.

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