mayor's fy 2013-2014 budget presentation
Post on 08-Nov-2014
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FISCAL YEAR 2013‐14PROPOSED BUDGET
Recovery, Restoration, Reinvestment
FY 13‐14 BUDGET OVERVIEW
• Total Budget: $7.7 billion (General Fund: $4.87B, Special Funds: $2.82B)
• Balanced with 70% on‐going solutions
• Proposed Reserve Fund: $255.2 million (5.24% of GF)
• No Layoffs & No Furloughs
• Reinvests in Services and Infrastructure
• Department Consolidations
• Proposes Labor Concessions
2
Economy‐Driven Revenue Growth
$111M
Pension Savings$51M
Effiencies/Reductions, $18M
Other Changes, $14M
One‐Time Revenues $140M
$216M
$335M
$‐
$50
$100
$150
$200
$250
$300
$350
Previously Projected Deficit Proposed Budget Solutions
Millions
FY 13‐14 BUDGET BALANCING ACTIONS
3
SurplusSavings/Revenue
$119M
SERVICE RESTORATION AND REINVESTMENTS
4
New & Increased Services$119M
AdditionalGraffiti Removal, $1M
Other,$10M
Animal ShelterStaffing, $1M
Community Services, $4M
Tree Trimming, $4M
Technology Investments, $5M
Economic Development, $6M
LAFD Technology Upgrades & New Firefihters, $10M Sidewalk
Repairs,$10M
LAPD VehicleReplacement,$15M
AdditionalCash Reserve, $21M
Street Resurfacing, $18M
Police OT BankReduction, $15M
GENERAL FUND REVENUE
$4.64
$4.87
$4.30
$4.392.1%growth
5.6%growth
5.1%growth
$4.00
$4.20
$4.40
$4.60
$4.80
$5.00
2010‐11Actual
2011‐12Actual
2012‐13Estimated
2013‐14Projected
$ Billion
s
The leading economic indicators for the City of Los Angeles and our region reflect continued growth in jobs, business and tourism.
• Unemployment Rate – Unemployment has decreased by 1.4% from February 2012.
• Jobs – Construction jobs have increased, with 8.1 percent growth from this time last year.
• Tourism & Hospitality – Occupancy is up 4% over last year, with occupancy rates of 75% and room rates up 4.3% ($135.98 average room night)
• International Trade – Total and inbound cargo at the Port of LA is up 16.9% and 25.2%, respectively.
• Housing & Development – Building permit valuations are up 20% and housing starts 9%.
ECONOMIC GROWTH & RECOVERY
5
• Creation of New Economic Development Department
• Consolidation of Planning Department, Department of Building & Safety, and other development services into a new Department of Planning and Development
HIGHLIGHTS – JOBS & ECONOMIC DEVELOPMENT
6
• Maintains LAPD at 10,000 sworn officers
• Provides funding for new LAPD vehicles
• Reopens Fire Department Drill Tower for recruitment and hiring of 140 new firefighters
• Upgrade of 25 basic Fire Department ambulances to advanced life support ambulances
• Maintains funding level for comprehensive Gang Reduction and Youth Development (GRYD) program
• Restores staff for Animal Shelter operations
HIGHLIGHTS – PUBLIC SAFETY
7
• Restores seven‐day service at the Central Library and eight Regional libraries
• Provides funding for recreation programming and maintenance of new and renovated park facilities
• Maintains Homeless Shelter Bed program
• Provides funding for Neighborhood Council Elections
• Increases funding for Graffiti Removal program
• Establishes Citywide Mural Program
HIGHLIGHTS – COMMUNITY SERVICES
8
• Maintains street resurfacing program at 800 miles
• Maintains funding for 350,000 pothole repairs
• Increases funding for tree trimming
• Provides new funding for critical sidewalk repair
• Increases funding for LA River Revitalization programs
• Provides new funding for bicycle planning
HIGHLIGHTS – INFRASTRUCTURE INVESTMENTS
9
Pension and Employee Compensation Costs
• Retirement and health benefits costs continue to grow
• Open contracts for majority of unions in 2014
Streets Program and Sidewalk Repair
• Loss of State funding for street pavement and preservation
• Long‐term plan for sidewalk repair required
Police Overtime Bank
• Accrued LAPD OT bank
• MOU expires on June 30, 301410
REMAINING CHALLENGES
• Elimination of 5.5% pay raises for 60% of civilian workforce scheduled for January 1, 2014
• Proposes City employees cover 10% of health benefit premium costs on an on‐going basis
• Proposes no additional employee raises for three years beyond July 1, 2014
• Continues “Managed Hiring” to control growth of City workforce
• Cuts Mayor and City Council budgets by 10%
11
PROPOSED SPENDING CUTS & LABOR CONCESSIONS
FISCAL OUTLOOK
12
($159)
$15
($95)($114)
($800)
($600)
($400)
($200)
$0
$200
FY2014‐15 FY2015‐16 FY2016‐17 FY2017‐18
Millions
By 2017‐18, the deficit will be eliminated, and the City will have a $15 million surplus.
Source: Los Angeles City Administrative Officer
CASH RESERVES – TOTAL OF $292 MILLION
13
Budget Stabilization
FundReserve for Economic Uncertainties
Contingency Reserve
$121M
Emergency Reserve
$134M
$16M
$21M
MandatedReserve$134M
Surplus Reserve$158M
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