Page 53 - FY 2022-23 Supporting Information

2022-23 PROPOSED BUDGET
SUMMARY OF CHANGES TO GENERAL FUND REVENUE FROM PRIOR YEAR
Economy-Sensitive and Other
(Thousand Dollars)

2022-23 Proposed Change

2021-22 Economy Other 2022-23
Budget Sensitive* Proposed
Property Tax $ 2,400,250 $ 66,385 $ - $ 2,466,635
Property Tax 1% 1,829,650 49,545 - 1,879,195
VLF Replacement 570,600 16,840 - 587,440
Redirection of ex-CRA Tax Increment Monies 111,990 23,900 17,910 153,800
Departmental Revenue 1,244,790 22,810 (322) 1,267,278
Utility Users Tax 605,050 9,050 - 614,100
Electric Users Tax (EUT) 435,950 (8,950) - 427,000
Gas Users Tax 95,000 4,100 - 99,100
Communications Users Tax (CUT) 74,100 13,900 - 88,000
Sales Tax 606,610 98,150 - 704,760
Business Tax 716,600 70,300 - 786,900
Transient Occupancy Tax 183,300 79,920 - 263,220
Power Revenue Transfer 225,819 3,902 - 229,721
Documentary Transfer Tax 227,005 71,535 - 298,540
Parking Fines 123,621 6,379 - 130,000
Parking Occupancy Tax 99,337 11,933 - 111,270
Franchise Income 94,657 8,874 16,300 119,831
Special Parking Revenue Transfer 8,477 21,950 - 30,426
Interest 20,603 16,007 - 36,610
Grants Receipts 91,343 - 30,740 122,083
Tobacco Settlement 11,489 0 - 11,489
Residential Development Tax 4,800 - - 4,800
State Motor Vehicle License Fees 2,942 958 - 3,900
American Rescue Plan Fund Transfer 639,450 - (639,450) -
Reserve Fund Transfer 85,090 - 20,502 105,592
Total General Fund Receipts $ 7,503,223 $ 512,053 $ (554,321) $ 7,460,955

* 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 utility user tax
increase is driven by increasing natural gas prices, and is offset by the continuing decline in CUT and DWP's lower forecast for
EUT. Sales, transient, and parking occupancy tax reflect continuing recovery from pandemic travel restrictions, closures, and
recession. Property tax which fell short of the 2021-22 Budget, reflect assumptions for lower growth with the pandemic's impact on
assessed value. Business, documentary, and residential development tax growth have been minimally impacted by the pandemic;
although growth assumptions differ according to historical growth, industry forecasts, and average long-term receipts, respectively.
Proceeds from the sale of former CRA surplus property is estimated at $17.9 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 increased receipts by a total of $22.5 million from the 2020-21 Adopted Budget.
Economic changes ($22.8 million) primarily reflect growth in Fire emergency ambulance services and LA Metro additional
deployment for the new Crenshaw/LAX line. Non-economic changes are anticipated to decline by a net of $0.32 million for
reimbursements from special funds and proprietary departments. A decrease of $15.8 million reflects changes to CAP rates,
anticipated vacancies, budgeted salary assumptions, funding availability, and Airport and Library reimbursements for City services.
The majority of these receipts are offset by a False Claims Act settlement related to wireless services and national opioid
settlement ($15.5 million).

Economic changes to miscellaneous revenues include: an increased transfer from the Special Parking Revenue Fund and
increased parking fine revenue with renewed parking demand and enforcement efforts; higher investment earnings from increased
interest rates and a larger General Fund pool; and, a Power Revenue Fund transfer based on anticipated 2021-22 fund operating
revenue. Other non-economic changes include: the loss of $639.5 million in federal stimulus funds from the American Rescue
Plan; increased grant receipts from FEMA and the state for the reimbursement of pandemic response costs ($104.9 million); and,
increased natural gas franchise revenue from restructured franchise agreements.

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