Page 47 - FY 2022-23 Supporting Information

2022-23 PROPOSED BUDGET
FOUR-YEAR GENERAL FUND BUDGET OUTLOOK (OUTLOOK) FOOTNOTES

(23) Capital and Technology Improvement Expenditure Program (CTIEP) – Municipal Facilities and Physical Plant:
The 2022-23 Budget includes a decrease in funding from the General Fund of $13.8 million for physical plant
related capital projects and $0.7 million for municipal facilities. The 2023-24 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 2022-23 decrease of $5.1 million
in General Fund appropriations reflects the availability of special funds to meet the adjusted $35.7 million minimum
obligation. The 2023-24 increase of $11.9 million will increase the General Fund appropriation to $29.7 million
annually, with the balance of the required investment covered by other sources of funds.

(25) CTIEP – Pavement Preservation Program: The Pavement Preservation Program increase of $11.7 million in
2022-23 reflects the restoration of General Fund for one-time efficiencies and to cover the costs shifted to special
funds on a one-time basis in 2021-22. Future years assume that the General Fund will bear cost increases to
maintain service levels that exceed the capacity of special funds.

(26) Appropriation to the Reserve Fund: There is no appropriation to the Reserve Fund in 2022-23. 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 budgeted transfer to the BSF is $64.3 million in 2022-23 and the projected
transfer is $2.0 million in 2023-24. Based on revenue projections, the policy will not trigger contribution in
subsequent years.

(28) Net – Other Additions and Deletions: The 2022-23 amount includes the restoration of one-time reductions
and efficiencies and ongoing changes and new regular positions added to the base budget. Among the significant
increases are a net increase of 830 regular authority positions, increased appropriation to the Library, and
increased expenditures for hotel development incentive agreements. 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, 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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