City at a Crossroads Miguel A. Santana City Administrative Officer - PowerPoint PPT Presentation

CITY OF LOS ANGELES City at a Crossroads Miguel A. Santana City Administrative Officer 1

2013-14 Projected Deficit From $1.07 Billion to $216 Million Department Cuts Capital $222 Million Improvement Cost Remaining Deferrals 2013-14 Deficit $48 Million $216 Million HR Benefits and Worker's Compensation Savings Salary Savings Revenue Growth $61 Million $83 Million $177 Million Pension Savings $263 Million 80% of once $1.07 billion deficit has been addressed. 2

City Contributions to Retirement Systems (LACERS and LAFPP) Actual Amounts 2005-06 to 2012-13 and Projections for 2013-14 $1,400 $1,262 $1,200 $999 $1,000 $848 $712 $793 $725 Millions $800 $666 $653 $639 $623 $617 $600 $506 $441 $435 $386 $327 $280 $326 $355 $400 $175 $550 $200 $382 $352 $343 $342 $339 $339 $313 $298 $260 $0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Projection Projection 2013-14 2013-14 (From (From Fiscal Year 2010) 2012) Total LACERS Total LAFPP Pension savings are $263 million from prior projection. 3

Authorized City Staffing (Not including Proprietary Departments) 40,000 37,173 36,971 36,667 36,156 35,974 35,879 35,459 35,415 35,864 35,000 32,965 -14.4% 32,274 31,817 30,000 14,244 14,253 13,944 13,832 13,807 13,799 14,012 13,758 13,805 13,740 13,677 25,000 13,647 Positions 20,000 15,000 22,723 22,929 22,718 22,167 22,324 22,080 21,701 21,610 21,852 10,000 19,225 18,597 18,170 5,000 - 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Fiscal Year All Others Police (sworn and civilian) Citywide, since 2007-08, staffing reduced by 5,300 positions or 14.4%. 4

2013-14 City Budget $7.2 Billion Unrestricted Revenue Discretionary Police Fire $359 Million Library 5% Unrestricted Revenue Recreation & Parks Non-Discretionary Public Works $3.4 Billion Transportation Animal Services 47% Building and Safety City Attorney Planning Controller Convention Center CAO (debt service) Cultural Affairs Restricted Revenue Emergency Mgt Finance $3.5 Billion Mayor 48% Council City Clerk Disability Sewer revenues Zoo Gas Tax Others Grants Fees for Special Services Cost for GSD, ITA, and Personnel allocated to all other budgets. Less than $360 million for “discretionary” spending 5

General Fund Contribution to the Animal Services Authorized Staffing Los Angeles Zoo and Regular Positions 450 300 $12.0 268 412 263 257 245 380 400 229 228 250 $10.0 364 218 -21% 338 $10.6 326 350 $9.9 200 $8.0 Positions Millions 300 150 $6.0 Positions 250 $6.4 $6.0 100 $4.0 $5.3 $4.8 200 50 $2.0 150 0 $- $1.3 100 50 0 2008-09 2009-10 2010-11 2011-12 2012-13 Fiscal Year Fiscal Year Regular Positions General Fund Contribution Need for cuts + Small amount of discretionary dollars = Large reductions to departments ($222 Million) 6

Authorized Staffing for Support Departments: Support Department Budgets : GSD and ITA GSD and ITA $250 $225 3,000 2,723 2,467 $200 $171 2,500 $158 $152 807 $147 1,859 712 1,795 2,000 $150 Millions 1,741 Positions $106 526 $91 515 1,500 479 $81 $80 $78 $100 1,000 1,916 1,755 $50 1,333 1,280 1,262 500 2008-09 2009-10 2010-11 2011-12 2012-13 Fiscal Year - 2008-09 2009-10 2010-11 2011-12 2012-13 GSD Adopted Budget (Adjusted for Public Safety, Petroleum, Leasing Fiscal Year and Mail Services) ITA Adopted Budget GSD (Excluding Construction Forces and Public Safety) Support departments have taken some of the biggest hits. 7

General Fund Revenue $4,700 $4,621 $4,550 $4,600 $4,500 $4,415 $4,415 $4,389 $4,363 $4,400 $4,443 $4,297 Millions $4,300 $4,284 $4,200 $4,177 $4,100 $4,132 $4,000 $3,900 $3,800 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Fiscal Year General Fund Actual Receipts Current Projection (2012) Prior Projections (2010) Loss of revenue not as deep as we expected due to one-time revenues used and economic recovery. 8

Reserve Fund Balance $300.0 6.00% 5.52% 5.37% 5.30% 4.94% $250.0 5.00% 4.40% 4.58% 4.15% 4.02% 4.20% 3.64% 3.45% $200.0 3.60% 4.00% 3.23% 3.00% Millions 2.89% Percent $150.0 2.60% 3.00% 2.30% $242.3 $224.9 $244.3 $100.0 $201.7 2.00% $182.3 $171.2 $165.8 $151.7 $171.0 $153.4 $156.4 $128.3 $118.2 $50.0 1.00% $62.6 $73.5 $86.9 $83.9 $- 0.00% Fiscal Year Reserve Fund Balance Available, July 1 Balance as % of General Fund Done: Reserve F und is over 5% of General F und. Next: Building up Budget Stabilization Fund. 9

2013-14 Budget Increases Requested by Police and Fire Departments Total $144 Million $60 $53 $48 $50 $17 $36 $40 Millions $27 $7 $30 $20 $36 $29 $21 $10 $4 $2 $3 $- Sworn Salaries Civilian Salaries Expense Facilities Vehicles and Equipment Request Type Police Department Fire Department E nsuring public safety $144 million more for police and fire departments just to keep same level of service next year. 10

Miles Completed By Fiscal Year 800 747 100 677 675 672 650 110 625 600 102 100 102 100 535 100 100 Miles 100 455 401 370 300 400 401 300 401 300 245 236 225 200 200 175 174 149 135 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Estimated Fiscal Year Resurfacing/Reconstruction (miles) Slurry Seal (miles) Crack Sealing (miles) Total (miles) Supporting basic City infrastructure City can no longer rely on non-General Fund dollars for infrastructure investment. 11

Maintaining a good quality of life Quality of life programs first to get cut. Can’t reinvest in services without additional funding. Investing in the economy and job growth New economic development model needed that maximizes the City’s assets. 12

2012-13 General Fund Expenditures $4,550 Million HRB Retirement $399 Million Contributions 9% $848 Million 19% Workers Comp. $193 Million 4% Salaries $2,705 Million 59% All Other (including Debt Service and CIEP) $405 Million 9% Labor costs, 91% of General Fund Stabilizing the workforce Long term stability requires controlling total employee compensation. 13

Budget Outlook Budget Outlook Adopted 2009-10 to 2012-13 Adopted 2009-10 to 2012-13 Projected 2013-14 to 2016-17 Projected 2013-14 to 2016-17 Expenditure Average Growth 3.9% Expenditure Average Growth 3.9% $5,400 $5,400 $5,295 $5,295 $5,300 $5,300 $5,167 $5,167 $5,200 $5,200 $5,056 $5,056 $5,100 $5,100 Millions Millions $5,000 $5,000 $5,030 $5,030 $4,837 $4,837 $4,900 $4,900 $4,800 $4,800 Revenue Average Growth 2.5% Revenue Average Growth 2.5% $4,700 $4,700 $4,550 $4,550 $4,600 $4,600 Revenue Average Growth with Sales Tax 3.6% $4,500 $4,500 2012-13 2012-13 2013-14 2013-14 2014-15 2014-15 2015-16 2015-16 2016-17 2016-17 Fiscal Year Fiscal Year Revenues Revenues Expenditures Expenditures Revenues with Sales Tax City at a crossroads. 14