LosAngelesBudgetChallenge

2013

Pleasemailyourcompletedsurveyto: OfficeofNeighborhoodand CommunityServices MayorAntonioR.Villaraigosa ATTN:NCS,AmandaR. 200N.SpringSt.,Room303D LosAngeles,CA90012 Ordropoffyourcompletedsurveyatoneofthefollowinglocationsbetween9amand5pm: CityHall VanNuysCityHall OfficeofMayorAntonioR.Villaraigosa ATTN:MayorsOffice,NCS,AmandaR. Mayor'sReceptionistDesk 14410SylvanStreet,Rm211 ATTN:NCS,AmandaR. VanNuys,CA91401 200N.SpringSt.,Room303 LosAngeles,CA90012

*SurveysmustbepostmarkedordroppedatoffatCityHallorVanNuysCityHallnolaterthanWednesday,February27,2013.

Surveyresultswillbepostedonhttp://mayor.lacity.orginMarch2013.

2013LosAngelesBudgetChallenge
YOURCHALLENGE

BalancetheCityofLosAngeles'Budget
MayorAntonioR.VillaraigosainvitesyoutotaketheLosAngelesBudgetChallenge.Developedwithinputfrom theCity'sNeighborhoodCouncilBudgetAdvocates,thesurveygivesyoutheopportunitytoshareyour prioritiesforbalancingtheCityofLosAngeles'budget.ForthenextFiscalYear,theCityofLosAngeles projectsa$216millionbudgetgap.Overthecomingmonths,MayorVillaraigosawillreviewopportunitiesto builduponrecenteffortstoimprovetheCity'sfiscalsustainability.YourparticipationwillassistMayor VillaraigosaashepreparestheFiscalYear201314ProposedBudget,whichwillbereleasedinApril2013.
ForinformationabouttheCityofLosAngeles'budgetandpreviousactionstakentobalancethebudget,viewtheattached handoutCityofLABudgetBackground.Totakethesurveyonline,pleasevisit:http://la.budgetchallenge.org.

Wheredothesepolicyoptionscomefrom?

LinksforBudgetBackground Shareyourthoughts

TheBudgetChallengeisabudgetbalancing CityofLABudgetBackground http://tinyurl.com/cityoflabb1 simulation.Budgetamountsforeachpolicyoption areestimatesbasedonpreliminarybudgettargets BudgetSummaryBook developedbytheMayorinanticipationofa$216 http://tinyurl.com/cityoflabb2 milliondeficitforFiscalYear(FY)201314.Formore information,pleaseviewtheMayorsFiscalYear TheFY1213AdoptedBudget 201314BudgetPolicyLetterlinkedhere: http://tinyurl.com/cityoflabb3 http://tinyurl.com/cityoflabpl,whichdirectedCity Departmentstosubmitbudgetproposalsthatmeet TheCitysFinancialStatus preliminaryreductiontargets. http://tinyurl.com/cityoflabb4

MayorVillaraigosawelcomes youtoshareyourideasabout theCity'sbudgetand operations.Pleaseusethe commentboxesavailable throughoutthesurveyto shareyourthoughtsand concernsaboutbudget balancingoptionsandabout Cityservicesingeneral.

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2013LosAngelesBudgetChallenge

Beforeyoubegin
Pleasetellusaboutyourself
ZipCode: NeighborhoodCouncilAffiliation(optional): IamaNeighborhoodCouncilBoardMember(optional):

____Yes____No

BudgetPriorities

Rankyourbudgetpriorities.(PleaseNote:TheCityofLosAngelesisafullservicecity,butisnotresponsiblefor alllocalgovernmentservicessuchasK12education,healthservices,andhighwayconstructionand maintenance.)

EconomicDevelopmentandPrivateSectorJob Creation(IncludesBusinessAssistance,Code
Enforcement,CityPlanning,JobTraining,Affordable Housing,andHomelessServices)

HighLow

Priority 1

Priority 2

Priority 3

Priority 4

Priority 5

Priority 6

FireServices(IncludesRescueandEmergencyMedical Services,FirePrevention,andArsonInvestigation) FiscalSustainability(IncludesStableReserveFund,

StreamlinedCentralAdministrationFunctions,Alternative ServiceDeliveryModels,ConsolidationofServices,and ReformofEmployeeCompensation,PensionandBenefits)

ImprovedInfrastructure(IncludesPublicTransit,Signal
Synchronization,ParkingEnforcement,SidewalkRepair andStreetImprovements)

LivableNeighborhoods(IncludesLibraryServices,
RecreationalServices,HumanWelfareServices,Artsand CulturalPrograms,Sanitation,andEnvironmental SustainabilityEfforts)

PoliceServices(IncludesCrimePrevention,Crime
Investigation,PatrolServices,andTrafficEnforcement)

Other(pleasespecifyandindicatepriority):

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2013LosAngelesBudgetChallenge

LongTermInitiativestoReformCityGovernment

Note:Whilethesereformsmaygeneratesubstantialcostsavingsandincreasedrevenueinfutureyears,theyrequireadditional studyandthereforewouldnotassistwithbalancingtheFY201314GeneralFundBudget.

Background

Overthepastseveralyears,theCityhasimplementedavarietyofmeasuresthathavesignificantlyreducedthestructural deficit.ThesemeasuresincludereformingCityemployeepensionplans,reducingtheCityworkforcebyover5,000 positions,improvingtheCity'sbillingandrevenuecollectionsprocesses,andstrictlylimitingthehiringofnewemployees. ToensurethattheCitycontinuesonthispathtofiscalsustainability,theMayorhasinstructedtheCityAdministrative OfficertoconductacomprehensivereviewofvariousopportunitiestoreducetheCity'slongtermstructuraldeficit,the MayorhasinstructedtheCityAdministrativeOfficertoconductacomprehensivereviewofvariousopportunitiestoreduce theCity'slongtermstructuraldeficit.Whiletheabovelistedreformscanpotentiallygeneratesubstantialcostsavingsin futureyears,theyrequireadditionalstudyandthereforewouldnotproducesavingsintheshortterm.Furthermore, reformstoemployeepayandbenefitsaresubjecttonegotiationswiththeCity'slaborunions.ToviewtheMayor'smemo totheCityAdministrativeOfficer,pleasevisitthefollowinglink:http://tinyurl.com/cityoflabgrd1

Options

(chooseasmanyasyoulikeornoneatall)

REFORMEMPLOYEEHEALTHCARE Pursueopportunitiestoreducethecostofemployeehealthcare.Thismayincludeincreasingcopays,utilizing alowercostrateforhealthsubsidies,andincreasingemployeecontributionstowardshealthcarepremium costs ArgumentsFor: ArgumentsAgainst: Increasingemployeecontributionstohealthbenefits Cityemployeesarealreadycontributingintotheir

wouldbestructuralsavingstotheCity.TheCitywouldbe abletomaintainservicelevelsandavoidpotential layoffs.

healthcarepremiumsandpayinghighercopays.TheCity shouldoperatemoreefficientlyandfindotherwaysto balancethebudget.

REFORMEMPLOYEECOMPENSATION Pursueopportunitiestomodifyemployeecompensationlevels.Thismayincludereducingcivilianemployees' startingsalaries,modifyingautomaticsalarystepincreases,andeliminatingpayfornonfederalCityholidays. ArgumentsFor: ArgumentsAgainst: TheCityshouldreformtheexistingcivilservice TheCityshouldcontinueitscurrentcivilservicestructure.

compensationstructure.Itshouldbebasedonamerit systemratherthanautomaticsalaryincreasesbasedon time.

Salaryincreasesarefixedandautomaticbasedonservice time.

REFORMWORKERSCOMPENSATION Pursueadditionalopportunitiestoreduceworkers'compcosts.Thismayincludeinvestingadditional resourcestopreventandinvestigateworkerscompclaimsandnegotiatingwithlaborunionstoreduceInjured onDutyratetotheState'slowercostrate. ArgumentsFor: ArgumentsAgainst: TheCityneedstoreformitsworkerscompensation Cityemployeesarealreadycontributingintotheirbenefits.

benefits.CurrentlyacityEmployeereceives100%ofits salaryfor52weeksasopposedtothe2/3grossratewith aceilingof$52,546annual.

Reducingtheworkerscompratewouldreduceemployees benefitfurther.TheCityshouldoperatemoreefficientlyand findotherwaystobalancethebudget.

Additionallongterminitiativesonthefollowingpage Page3of20

2013LosAngelesBudgetChallenge

LongTermInitiativescontinued

Note:Whilethesereformsmaygeneratesubstantialcostsavingsandincreasedrevenueinfutureyears,they requireadditionalstudyandthereforewouldnotassistwithbalancingtheFY201314GeneralFundBudget.

Options
(chooseasmanyasyoulikeornoneatall) REFORMRETIREEPENSIONS Furtherpursueopportunitiestoreformretireepensions.Thismayincludemodifyingautomaticcostof livingadjustmentstopostemploymentbenefitsforretirees. ArgumentsFor: ArgumentsAgainst: TheCityshouldcontinuetoreducethecostofretiree RetireeshavealreadypaidfortheirbenefitsintotheCity.

benefits.Thiswouldhelptoreducethestructuraldeficit withoutimpactingservicelevels.

Theyarenowonafixedincomeandshouldbe compensatedwhatwaspromisedtothem.

EXPANDSTRATEGICOUTSOURCING ExpandtheuseoflegalandfiscallyprudentopportunitiestocontractoutCityservices,includingbutnot limitedtoambulancetransport,informationtechnology,andstreetmaintenanceservices. ArgumentsFor: ArgumentsAgainst: TheCityshouldincreaseitsutilizationofstrategic OutsourcingCityservicesrequiresadditionaladministrative

outsourcingfortheprovisionofCityserviceswhen appropriate.PartneringwithnonCityentitiescan providetheCitywithspecializedexpertiseandallowitto addressunanticipatedpeaksinworkload.

oversight.Furthermore,thequalityandaffordabilityofCity servicesmaybeimpacted.

NEWECONOMICDEVELOPMENTMODEL Establishanewmodelfororganizinganddeliveringservicesthatwillhelpcreate/retainjobsinLos Angelesandgenerateinvestmentinunderservicedcommunities. ArgumentsFor: ArgumentsAgainst: WhilevariousCitydepartmentsprovideservicesrelated Thecreationofaneconomicdevelopmentmodelwill

tolocaleconomicdevelopment,aneweconomic developmentmodelwillallowtheCitytomakea concertedefforttocreatenewjobs,attractnewbusiness andindustries,maximizetheCity'sassets,andincrease GeneralFundrevenue.

requirenewcostsforstaff,equipment,facilitiesandother expenses.WhiletheCitymaybeabletostreamlineits existingresourcestocreatethisnewmodel,thecostsmay increaseCity'sstructuraldeficitandanypotentialrevenue growthwillmostlikelyberealizedinthelongterm.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

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2013LosAngelesBudgetChallenge

SpendingOptions:AnimalServices
(chooseone)

MAINTAINSTATUSQUOFUNDING MaintaincurrentGeneralFundsupport(approx.$20million)forAnimalServices,whichreflectsan overallreductionof1%since2009. ArgumentsFor: ArgumentsAgainst: Thedepartmentshouldcontinuetolookfor Thedepartmenthassustainedcutsinthepastand efficiencies.Explorethepotentialpublicprivate absorbingadditionalcutswillcreateinefficienciesand partnershipswithotherorganizations. potentialliabilities.TheCityshouldlookatreductions throughotherefficiencies. REDUCE$2.0MILLION Reducefundingforanimalshelteroperations,spay/neuterprograms,andanimallicensing.Thismay resultintheclosureofananimalshelterandinincreasedeuthanizationofanimalsinthecareoftheCity. Note:Decreasingfundingmayresultinlayoffs. ArgumentsFor: ArgumentsAgainst: TheCityhasasignificantstructuralgapbetween Reductionstothedepartmentwillcreateinefficiencies, expendituresandrevenues.Itcannotmaintainthe potentialliabilitiesandtheprobableclosureofan statusquo.TheCityshouldcontinuetoreducefunding animalshelter.TheCityshouldnotriskincreasing forAnimalServicesandexplorepublicprivate animaleuthanizations.TheCityshouldmakereductions partnershipswithotherorganizations. tootherservices. INCREASE$2.0MILLION Increasefundingtosupportanimalshelteroperations,spay/neuterprograms,andanimallicensing. ArgumentsFor: ArgumentsAgainst: Thedepartmenthasbeencut20%overthelast5 Thedepartmentshouldbetreatedlikeallother years.Increasingfundingwillallowthedepartmentto departmentsandcontinuetoimplementefficienciesand properlystaffitsoperations. furthercostreductions.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background

TheDepartmentofAnimalServices(www.laanimalservices.com)operatesandmaintainsanimalshelters,issues dogandequinelicenses,participatesintheCounty'srabiescontrolprogram,issuespermits,andconducts inspectionsfortheoperationofanimalestablishments.In2011,theDepartmentpartneredwiththenonprofit organization,BestFriendsAnimalSociety(http://bfla.bestfriends.org),fortheoperationoftheCity'sNortheast ValleyShelter.TheuniquepartnershiphasallowedtheCitytomaintainservicesattheshelteratareducedcost totheCity.TheFiscalYear201213Budgetincludesatotalappropriationof$20million(allofwhichis providedbytheGeneralFund)totheDepartmentofAnimalServices.

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2013LosAngelesBudgetChallenge

SpendingOptions:CityAttorney
(chooseone)

MAINTAINSTATUSQUOFUNDING MaintaincurrentGeneralFundsupport(approx.$94million)forCityAttorneyoperationsandservices, whichreflectsanoverallreductionof4%since2009. ArgumentsFor: ArgumentsAgainst: TheCityAttorneyprovidesanessentialCityservice. Topreventsevereservicereductions,theCityshould FurtherreductionsmaycreateliabilitiesfortheCity makemodestcutstoalldepartments,includingtheCity andwouldimpairtheCityAttorney'sabilitytofile Attorney'sOffice. casesandtorenderlegalopinionsinatimelymanner. REDUCE$9.4MILLION ReducefundingforlegalcounselservicestotheCityCouncilandCitydepartments.Thismaycreate delaysinthereviewofcontractsandordinances,andmayplacetheCityatgreaterriskofliability lawsuits.Note:Decreasingfundingmayresultinlayoffs. ArgumentsFor: ArgumentsAgainst: CutstoCityAttorney'sbudgetarenecessaryto FundingfortheCityAttorneyhasalreadybeenreduced. preventsevereservicereductionstocoredepartments FurthercutswillimpairtheOffice'sabilitytofilecases suchasthePoliceDepartmentandFireDepartment. andrenderlegalopinionsinatimelymanner.Any furtherreductionscouldposealiabilitytotheCity. INCREASE$9.4MILLION IncreasefundingforlegalcounselservicestotheCityCouncilandCitydepartments.Thismayimprove theOfficescapacitytorepresenttheCityincasesrelatedtoworkers'compensationclaimsandlitigation; toexamineCitycontractsandordinances;andtoprosecutemisdemeanors. ArgumentsFor: ArgumentsAgainst: Theadditionalfundswouldallowthedepartmentto RestoringfundingfortheCityAttorney'sOfficewilladd restorethe34furloughdays(unpaidtimeoff) totheCity'sbudgetshortfall.TheCityshouldcontinue currentlyimposedonattorneypositionsintheoffice. toreduceitsexpenditurestoalldepartments,including Eliminatingthese34furloughswouldresultin theCityAttorney'sOffice. increasedservices.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background

TheCityAttorney(http://atty.lacity.org)actsaslegaladvisortotheCityofLosAngeles,theCityCouncil,all BoardandCommissionOfficers,andCityDepartments.TheCityAttorneyrenderslegalopinionsconstruing federalandStatelaws,theCharterandCityordinances.Additionally,theCityAttorneyrepresentstheCity,its boards,officialsandofficersinallciviltrialsandlegalproceedingsbeforeallcourts,aswellasStateandFederal CommitteesandCommissions.TheFiscalYear201213Budgetincludesatotalappropriationof$98million (ofwhich$94millionisprovidedbytheGeneralFund)totheOfficeoftheCityAttorney.Forthecurrentyear, theBudgetincluded34furloughdays(unpaidtimeoff)forover400employeesintheCityAttorneysOffice.

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2013LosAngelesBudgetChallenge

SpendingOptions:ConstituentServices,LegislativeAnalysis &PolicyDetermination
(chooseone)

MAINTAINSTATUSQUOFUNDING MaintaincurrentGeneralFundsupport(approx.$32million)forMayor,CouncilandNeighborhoodCouncils, whichreflectsanoverallreductionof36%since2009.

ArgumentsFor: OurCityleaderswereelectedtoimplementeffectivepublic policiesthatimproveconditionsintheCity.Further reductionswillmakeitdifficultforthemtoperformtheir Chartermandatedresponsibilitiesandtoaddress constituents'requestsandconcernsinatimelymanner.

ArgumentsAgainst: OurelectedofficialsandNeighborhoodCouncilsshouldbe subjecttobudgetcutsjustlikeallotherCitydepartments.It wouldbeunfairtoexemptourCityleadersfrombudget reductionswhileothermunicipalservicescontinuetobecut.

REDUCE$3.2MILLION Reducefundingforconstituentservices,legislativeanalysis&policydetermination.Thismayimpactthe Mayor,Council&NeighborhoodCouncilsabilitiestosupportcommunityeventsandservices,torespondto constituentrequestsandtoconductlegislativeanalysisrequiredfordecisionmaking.Note:Decreasing fundingmayresultinlayoffs.

ArgumentsFor: Publicofficialsmustleadbyexampleandtrimtheirbudgets. WithoutmodestcutstoNeighborhoodCouncilsandelected officialsoffices,theCitywillbeforcedtomakesevere reductionstoothercriticalservices.

ArgumentsAgainst: Publicofficialsneedsufficientresourcestorespondto constituentrequestsandtocarryoutlegislativeanalysis requiredtoimplementgoodpublicpolicy.Furthercutsimpact ourleaders'capacitiestoimprovepublicsafety,health,and economicconditionsinLosAngeles.

INCREASE$3.2MILLION Increasefundingforconstituentservices,legislativeanalysisandpolicydetermination.

ArgumentsFor: TheMayor,Council&NeighborhoodCouncilsprovidecritical servicestoresidentsandotherCitystakeholders.Wemust providepublicofficialswithsufficientresourcesneededto leadourCityandplaceitonamorefiscallysustainablepath.

ArgumentsAgainst: RestoringfundingfortheMayor'sOffice,theCityCounciland NeighborhoodCouncilswilladdtotheCity'sbudgetshortfall. TheCityshouldcontinuetomakebudgetcutstoall departments,includingourpublicofficials.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background

AstheelectedheadofCitygovernment,theMayor(http://mayor.lacity.org)recommendstheannualbudget,submits proposalstotheCouncil,approvesorvetoesordinancespassedbytheCouncil,andactivelyenforcestheCity'sordinances. TheCityCouncil(http://lacity.org/YourGovernment/CityCouncil)isthegoverningbodyoftheCityandenactsordinances subjecttotheapprovalorvetooftheMayor.TheCounciladoptsormodifiesthebudgetproposedbytheMayor.The CouncilisprovidedtechnicalassistancebytheChiefLegislativeAnalyst'sOffice.NeighborhoodCouncils (http://done.lacity.org)arecitycertifiedlocalgroupscomprisedofpeoplewholive,work,orownpropertyina neighborhood.Currently,thethereare95NeighborhoodCouncilsintheCityofLosAngeles.InFiscalYear201213,each NeighborhoodCouncilreceivedpublicfundsof$37,000tosupporttheiractivities,whichmayincludecreatingeventsand programsthataddresstheuniqueneedsoftheircommunity.TheDepartmentofNeighborhoodEmpowerment (http://done.lacity.org)isresponsiblefordevelopingandsupportingthecitywidesystemofNeighborhoodCouncils.The Department'smissionistopromoteincreasedparticipationingovernmentandtomakegovernmentmoreresponsiveto localneedsthroughtheNeighborhoodCouncilsystem.TheFiscalYear201213Budgetincludesatotalappropriationof $32million(thevastmajorityofwhichisprovidedbytheGeneralFund)totheMayor'sOffice,CityCouncil, NeighborhoodCouncilsandtheDepartmentofNeighborhoodEmpowerment.

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2013LosAngelesBudgetChallenge

SpendingOptions:EmployeeCompensation
(chooseone)

MAINTAINSTATUSQUO ProvidefundingforCityemployees'costoflivingadjustments(COLAs)thathavebeendeferredsince 2009. ArgumentsFor: ArgumentsAgainst: TheCityshouldfulfillitspromisetoemployeesby ItwouldbeirresponsiblefortheCitytoraiseemployee fundingpreviouslynegotiatedCOLAs.Employeeshave salarieswhileitisfacingasignificantimbalance alreadysacrificedbyagreeingtodefertheCOLAs,to betweenitsexpendituresandrevenues.Notfundingthe contributemoreintotheirhealthcarepremiums,and COLAswillallowtheCitytoreducetheFY201213 topayhighercopays.TheCityshouldoperatemore shortfallbyover$20million. efficientlyandfindwaystobalancethebudgetother thanonthebacksofemployees. REDUCE$22.3MILLION Donotprovidefundingforcontractualcostoflivingadjustments(COLAs)tocivilianemployees.Note: Thispolicyoptionissubjecttolabornegotiationsandmayresultinlitigation. ArgumentsFor: ArgumentsAgainst: NotfundingtheCOLAstocivilianemployeeswillallow TheCityshouldnotbalancethebudgetwithuncertain theCitytoavoidasubstantialincreasetoits costsavings.IftheCitydoesnotfundtheCOLAsfor expenditures.BychoosingnottofundtheCOLAs,the civilianemployees,itisverylikelythatlaborunionswill Citywouldbeabletoavoidsignificantservice legallychallengetheCityforfailingtofulfillits reductionsandpotentiallayoffsneededtobalancethe contractualobligationtoemployees.ShouldtheCity budget. loseincourt,itwillbeforcedtopayfortheCOLAs.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background

TheCity'sprimarycostsareassociatedtosalaryandbenefits.Since2009theCityhasundertaken unprecedentedeffortstoaddressitsrisingemployeecompensation,benefitsandpensioncosts.Theseefforts include,butarenotlimitedto:

Modifyingcivilianpensionsbyraisingtheretirementagefrom55to65,reducingthemaximumpension allowancefrom100percentto75percentofanemployee'sfinalcompensation,andeliminatingpension spikingbysettinganemployees'pensionona3yearsalaryaverageasopposedtooneyear. Requiringemployeestocontribute2percentto4percent(fromzero)oftheirpayforretireehealth benefits,andfreezingbenefitsforemployeesnotcontributing. Eliminatingover5,000positions,resultinginthesmallestcivilianworkforcesince1993. Imposinga20percentsalaryreductionfornewswornpoliceofficersinadditiontoreducingretirement benefits.

Formoreinformationaboutemployeelaboragreements,visitthefollowingwebsite:http://cao.lacity.org/MOUs

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2013LosAngelesBudgetChallenge

SpendingOptions:FireSuppression&Prevention
(chooseone)

MAINTAINSTATUSQUOFUNDING MaintaincurrentGeneralFundsupport(approx.$506million)forFireDepartmentoperationsand services,whichreflectsanoverallreductionof9%since2009. ArgumentsFor: ArgumentsAgainst: StaffandresourcereductionstotheFireDepartment Thedepartmentcurrentlyhasinsufficientresources. putthelivesofresidentsandfirefightersatrisk.The Budgetreductionswillcreateinefficienciesand CityshouldsupporttheFireDepartment'scurrent potentialliabilities.TheCityshouldlookatreductionsto fundinglevel. otherdepartments. REDUCE$3.1MILLION ReducefundingforFireDepartmentoperationsandservices.Thismayimpactfirepreventionservicesas wellasfiresuppressionandemergencyambulanceresponsetimes.Note:Decreasingfundingmayresult inlayoffs. ArgumentsFor: ArgumentsAgainst: TheLosAngelesFireDepartmentCityshoulddevelopa StaffandresourcereductionstotheFireDepartmentwill plantomorecosteffectivelydeployfirefightersand increasefirefighterandambulanceresponsetimes, tocivilianizecertainFireDepartmentfunctions. whichputsthelivesofresidentsatrisk. INCREASE$3.1MILLION IncreasefundingforFireDepartmentoperationsandservices.Thismayincreasefirefighterdeployment levels. ArgumentsFor: ArgumentsAgainst: TheFireDepartmentiscurrentlyoperatingwith RestoringfundingfortheFireDepartmentwilladdtothe insufficientresources.TheCityshouldincrease City'sbudgetshortfall.TheCityshouldcontinuetomake supporttothedepartmenttoprotectpublicsafety. budgetcutstoalldepartments,includingtheFire Department.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background

TheLosAngelesFireDepartment(http://lafd.org)providesrescueandemergencymedicalservices;controls andextinguishesdangerousfires;protectslifeandpropertyfromfirerisksbyinspectingbuildingsforfire hazardsandenforcingfirepreventionlaws;carriesonafirepreventioneducationalprogram;andinvestigates suspectedcasesofarson. TheFiscalYear201213Budgetincludesatotalappropriationof$513million(ofwhich$506millionis providedbytheGeneralFund)totheLosAngelesFireDepartment.

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2013LosAngelesBudgetChallenge

SpendingOptions:HumanWelfarePrograms
(chooseone)

MAINTAINSTATUSQUOFUNDING MaintaincurrentGeneralFundsupport(approx.$48million)forHumanWelfareprograms,whichreflects anoverallincreaseof9%since2009. ArgumentsFor: ArgumentsAgainst: Theseprogramsareintegraltothepublicsafety, TopreventsevereservicereductionstootherCity economicvitality,healthandwellbeingofmanyCity functions,theCityshouldmakemodestcutstoall residents.TheCityshouldmaintainthecurrent servicesincludinghumanwelfareprograms. fundinglevelforHumanWelfarePrograms. REDUCE$4.8MILLION Reducefundingforservicesforlowincomeseniors,personswithdisabilities,atriskyouth,thehomeless, aswellasgangpreventionandinterventionservices.Note:Decreasingfundingmayresultinlayoffs. ArgumentsFor: ArgumentsAgainst: Reducingfundingtohumanwelfareprogramsis TheseprogramshelptoensurethattheCityofLos necessarytobalancethebudget.Humanwelfare Angelessupportsthehealth,wellbeing,publicsafety, programsshouldcontinuetostreamlinetheir andeconomicvitalityofallofitsresidents.TheCity operationstoaccommodatemodestcutstotheir shouldprioritizehumanwelfare.Budgetcutsshouldbe budgets. madeelsewhere. INCREASE$4.8MILLION Increasefundingforservicesforlowincomeseniors,personswithdisabilities,atriskyouth,the homeless,aswellasgangpreventionandinterventionservices. ArgumentsFor: ArgumentsAgainst: Theseprogramsprovideuniqueservicesthatenrich Whilehumanwelfareprogramsareimportanttothe thelivesofresidents.TheCityshouldincreasefunding wellbeingofLosAngelescommunities,theCitymust fortheseprograms. prioritizeitsmoreessentialfunctions,suchaspublic safetyandbasicstreetrepair.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background

TheCityofLosAngelesprovidesanumberofhumanwelfareprograms,includingservicesforlowincome seniors,personswithdisabilities,atriskyouth,thehomeless,aswellasgangpreventionandintervention services.TheseservicesareprovidedbythetheDepartmentofAging(http://aging.lacity.org),Departmenton Disability(http://disability.lacity.org),CommunityDevelopmentDepartment(http://cdd.lacity.org),theHousing Department(http://lahd.lacity.org),LosAngelesHomelessServicesAuthority(http://www.lahsa.org),theOffice ofGangReductionandYouthDevelopment(http://mayor.lacity.org/Issues/GangReduction),andseveralnon profitagenciesthatcontractwiththeCity.TheFiscalYear201213Budgetincludesatotalappropriationof $129million(ofwhich$48millionisprovidedbytheGeneralFund)tothesedepartmentsandprograms.

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2013LosAngelesBudgetChallenge

SpendingOptions:PoliceServices
(chooseone)

MAINTAINSTATUSQUOFUNDING MaintaincurrentGeneralFundsupport(approx.$1.22billion)forPoliceDepartmentoperationsand services,whichreflectsanoverallreductionof5%since2009. ArgumentsFor: ArgumentsAgainst: ThePoliceDepartmentisalreadyoperatingwith Over25%oftheCity'stotalGeneralFundisspentonthe insufficientresources.Ensuringpublicsafetyshould PoliceDepartment.Thedepartmentshouldfindwaysto betheCity'snumberonepriority.Cutsshouldbe bemoreefficient. madeelsewhere.

REDUCE$23.1MILLION ReducefundingforPoliceDepartmentexpensesandforcivilianstaffsupportofcrimepreventionand suppressionfunctions.Note:Decreasingfundingmayresultinlayoffs. ArgumentsFor: ArgumentsAgainst: CrimelevelsinLosAngelesareatahistoriclow.The ReducingfundingforthePoliceDepartmentwill PoliceDepartmentshouldbeabletocontinueto jeopardizepublicsafety.Thedepartmentisalready provideadequatepublicsafetyserviceswithfewer operatingwithinsufficientresourcesandshouldnotbe resources.Thedepartmentshouldreassessits cut. currentdeploymentmodeltooperatemoreefficiently.

INCREASE$23.1MILLION IncreasefundingforPoliceDepartmentexpensesandforcivilianstaffsupportofcrimepreventionand suppressionfunctions. ArgumentsFor: ArgumentsAgainst: Currently,thePoliceDepartmentisoperatingwith IncreasingfundingforthePoliceDepartmentwilladdto insufficientresources.Wemustinvestinthe theCity'sbudgetshortfall.TheCityshouldcontinueto departmenttoensurepublicsafety,whichisessential makebudgetcutstoalldepartments,especiallythe tothelocaleconomyandresidents'qualityoflife. City'slargestdepartment.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background

TheLosAngelesPoliceDepartmentorLAPD(http://www.lapdonline.org)isprovidedaGeneralFundbudgetof $1.22billiontosafeguardthelivesandpropertyofthepeopleitserves,toreducetheincidenceandfearof crime,andtoenhancepublicsafetywhileworkingwiththeCitysdiversecommunitiestoimprovequalityof life.TheMayorandthePoliceChiefhavepledgedtheircommitmenttocrimereductionbymaintainingthe ranksoftheLAPD.AsofJanuary1,2013,thenumberofpoliceofficershasincreasedto10,023,anincreaseof over700officerssince2005.Duringthissameperiod,totalPart1Crimes(Homicide,Robbery,Rape, AggravatedAssault,Burglary,GrandTheftAutoandTheftfromMotorVehicles)havedecreasedby27%.For the2012EndofYearSummaryonCrimeStatistics,pleaseviewthefollowinglink: http://www.lapdonline.org/lapd_command_staff/pdf_view/52718.TheFiscalYear201213Budgetincludesa totalappropriationof$1.26billion(ofwhich$1.22billionisprovidedbytheGeneralFund)totheLAPD.

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2013LosAngelesBudgetChallenge

SpendingOptions:Recreation&Parks
(chooseone)

MAINTAINSTATUSQUOFUNDING MaintaincurrentGeneralFundsupport(approximately$99million)forRecreationandParksoperations andservices,whichreflectsanoverallreductionof24%since2009. ArgumentsFor: ArgumentsAgainst: RecreationandParksbuildshealthycommunityby TheCityisstillfacingastructuraldeficit.Tobalancethe providingresidentswithsafefacilitiesandavarietyof budget,theCityshouldcontinuetomakemodestcutsto affordableprograms.TheCityshouldmaintainthe alldepartments,includingRecreationandParks. department'scurrentfundinglevel.

REDUCE$4.0MILLION RequirethedepartmenttofullyreimbursetheGeneralFundforoverheadcosts.Thismayreduce maintenanceandlandscapingoffacilitiesandparks,reduceprogrammingforatriskyouth,andreduce fundsavailableforcapitalprojects.Note:Decreasingfundingmayresultinlayoffs. ArgumentsFor: ArgumentsAgainst: Reducingfundingcitywide,especiallyfornoncore FurtherreductionstoRecreationandParkswillimpact services,isnecessarytoeliminatetheCity'sdeficit. thewellbeingofyouth,familiesandadultswhorelyon safeandaffordablerecreationalservicesintheir neighborhoods.Reductionsshouldbemadeelsewhere.

INCREASE$4.0MILLION Increasefundingtoimprovemaintenanceofrecreationalfacilitiesandparks,toincreaserecreational programminghours,andtoreplaceoutdatedequipment. ArgumentsFor: ArgumentsAgainst: Thedepartmentprovidesvaluableservicesthatnot Whilerecreationalservicesareimportanttothewell onlyenrichthelivesofresidents,butalsopromote beingofLosAngelescommunities,theCitymust publichealthandpreventcrimeinlocal prioritizeitsmoreessentialfunctions,suchaspublic neighborhoods.TheCityshouldprioritizethesecore safetyandbasicstreetrepair. services.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background

TheDepartmentofRecreationandParks(http://www.laparks.org)managesover15,000acresofparklandwith over400parks,60publicpools,elevenlakes,morethan180recreationandcommunitycenters,13golf courses,andnumerousculturalcentersandmuseums.TheDepartmentoffersawiderangeofprogramsand servicesincludingrecreationprogramsatparkfacilities,afterschoolrecreationclasses,summerprograms,and seniorcitizenservices.Manyoftheseprogramsaredependentontheworkofsome15,000activevolunteers. TheFiscalYear201213Budgetincludesatotalappropriationof$99million(allofwhichisprovidedbythe GeneralFund)totheDepartmentofRecreationandParks.Note:ThisamountaccountsfortheDepartment's reimbursementtotheGeneralFundforoverheadcosts.

Page12of20

2013LosAngelesBudgetChallenge

SpendingOptions:SupportServices
(chooseone)

MAINTAINSTATUSQUOFUNDING MaintaincurrentGeneralFundfunding(approximately$371million)forsupportservices,whichreflects anoverallreductionof25%since2009.Theseservicesincludeinformationtechnologysupport,financial support,fleetandfueloperations,custodialandsecurityservicesforCityfacilities,administrativeand budgetanalysis,auditingandaccountingservices,andpersonnelservices. ArgumentsFor: ArgumentsAgainst: MostCityservicesrelyontheadequateprovisionof TheCityshouldcontinuetomakemodestcutstoall generaladministrationandsupport.TheCityshould departments,includingthosethatprovidegeneral notimposefurthercutsinfundingforthesefunctions. administrationandsupporttootherdepartments.

REDUCE$31.1MILLION Reducefundingforinformationtechnologysupport,financialsupport,fleetandfueloperations,custodial andsecurityservicesforCityfacilities,administrativeandbudgetanalysis,auditingandaccounting services,andpersonnelservices. ArgumentsFor: ArgumentsAgainst: Departmentsthatperformgeneraladministrationand TheCityhasalreadyimplementedsignificanteffortsto supportservicesshouldbeabletostreamlinetheir streamlinegeneraladministrationandsupport operationstoabsorbmodestbudgetreductions. functions.Departmentsdependongeneraladminand supporttoeffectivelyprovidedirectservices.TheCity shouldprotectsupportservicesfromseverecuts.

INCREASE$31.1MILLION Increasefundingforinformationtechnologysupport,financialsupport,fleetandfueloperations, custodialandsecurityservicesforCityfacilities,administrativeandbudgetanalysis,auditingand accountingservices,andpersonnelservices. ArgumentsFor: ArgumentsAgainst: Generaladministrationandsupportisintegraltothe Cutsshouldbemadetoadministrationandsupport deliveryofmostCityservices.TheCityshouldensure functionsinordertomitigateseverecutstoothermore thatdepartmentsthatprovidegeneraladministration essentialservices. andsupporthavetheresourcestoperformboth effectivelyandefficiently.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background

TheCitymustprovideinternalservicestosupportits31,000employeesandtoassistCitydepartments,suchasthe PoliceDepartmentandFireDepartment,inprovidingservicestoover4millionresidents.Generaladministrationand supportincludeinformationtechnologysupport,financialsupport,fleetandfueloperations,custodialandsecurity servicesforCityfacilities,administrativeandbudgetanalysis,auditingandaccountingservices,andpersonnel services.TheFiscalYear201213Budgetincludesatotalappropriationof$438million(ofwhich$371millionis providedbytheGeneralFund)totheCityClerk(http://cityclerk.lacity.org),CityAdministrativeOfficer (http://cao.lacity.org),CityController(http://controller.lacity.org),DepartmentofGeneralServices (http://gsd.lacity.org),InformationTechnologyAgency(http://ita.lacity.org),OfficeofFinance (http://finance.lacity.org/),andthePersonnelDepartment(http://www.ci.la.ca.us/per).

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2013LosAngelesBudgetChallenge

SpendingOptions:Transportation,Streets&Infrastructure
(chooseone)

MAINTAINSTATUSQUOFUNDING MaintaincurrentGeneralFundsupport(approx.$145million)forTransportation,Streetsand Infrastructure,whichreflectsanoverallreductionof36%since2009. ArgumentsFor: ArgumentsAgainst: Maintainingourroadsandinfrastructureandensuring Reducingfundingtodepartmentscitywideisnecessary aneffectivetransportationsystemareintegraltothe tobalancethebudget.TheCityshouldbeableto safetyandwellbeingofresidents.TheCityshould streamlinetransportation,streetsandinfrastructure maintainfundinglevelsfortheseprojectsand operationstoabsorbmodestbudgetreductions. operations.

REDUCE$14.5MILLION ReducefundingforTransportation,StreetsandInfrastructure.Thismayresultinreducedstreet maintenanceandpotholerepairaswellasdeferredcapitalinfrastructureprojects.Note:Decreasing fundingmayresultinlayoffs. ArgumentsFor: ArgumentsAgainst: WithoutmeaningfulcutstolargeCitydepartments TheCitymustcontinuetoinvestintransportation, likeLADOT,theCitywillbeunabletofixthestructural streetsandinfrastructure.Theseservicesand imbalancebetweenCityrevenuesandexpenditures. operationsarenecessarytothequalityoflifeandvitality oftheCity'sbusinesscommunity.

INCREASE$14.5MILLION IncreasefundingforTransportation,StreetsandInfrastructure.Thiswouldprovidesupportforpriority capitalinfrastructureprojectsandincreasedstreetmaintenanceandpotholerepairs. ArgumentsFor: ArgumentsAgainst: TheCity'seconomicrecoverydependsonawell TheCitysimplycannotaffordtoincreasefundingfor maintainedinfrastructureandahighquality operationsandprojectsatthistime.ToensuretheCity's transportationsystem.TheCityshouldsupportefforts fiscalsustainabilityanditsabilitytoprovidequality tomeetthesegoalsbymaintainingfundinglevelsin serviceswellintothefuture,theCitymustcontinueto thiscategory. implementefficienciesandbudgetreductions.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background
TheCitymanagesavarietyofinfrastructureprojectsandtransportationandstreetservices.Theseinclude,but arenotlimitedto:themaintenanceofroadways,bridges,andsidewalks;enforcementofparkingandtaxicab regulations;provisionofschoolcrossingguardservices;maintenanceoftrafficsignalsandstreetsignage; administrationofconstructionpermitsforpublicworks;andthepreparationofenvironmentalassessmentsand engineeringdesignsforpublicimprovements. TheFiscalYear201213Budgetincludesatotalappropriationof$587million(ofwhich$145millionis providedbytheGeneralFund)totheBoardofPublicWorks(http://bpw.lacity.org/),theBureauofContract Administration(http://bca.lacity.org),theBureauofEngineering(http://eng.lacity.org),theBureauofStreet Services(http://www.ci.la.ca.us/boss),theDepartmentofTransportation(http://www.ladottransit.com)and theCapitalImprovementExpenditureProgram.

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2013LosAngelesBudgetChallenge

SpendingOptions:Other
(chooseone)

MAINTAINSTATUSQUO MaintaincurrentmanagementstructurefortheLosAngelesZooandConventionCenter. ArgumentsFor: ArgumentsAgainst: AlteringthemanagementstructurefortheLosAngeles ImplementingnewoperatingmodelsallowtheCityto

ZooandtheLosAngelesConventionCentermayleadto layoffs,lesspublicaccountability,andareductionin servicequality.TheCityshouldretainfullcontrolofthe managementandoperationsoftheZooandthe ConventionCenter.

reducecostsandprioritizefundingforcoreservicessuchas publicsafety,transportationandstreets.

REDUCE$1.3MILLION ImplementanewoperatingmodelfortheLAZoothatstrengthenstheCity'spartnershipwiththenon profit,theGreaterLosAngelesZooAssociation,andprovidestheZoowithgreaterflexibilityto implemententrepreneurial,revenuegeneratinginitiatives. ArgumentsFor: ArgumentsAgainst: AnewoperatingmodelwillallowtheZootoimproveits Anewoperatingmodelmayimpactthequalityofanimal

operationsandtobettercompetewithothertourist destinationsintheLosAngelesregion.

careandtheaffordabilityoftheZooforresidents.TheCity mustmaintainanimalcarestandardsandprotect affordable,recreationalactivitiesforitsresidents.

INCREASE$4.1MILLION ImplementanalternativemanagementstructurefortheLosAngelesConventionCentersthatallowsa privatecompanytomanageandoperatethefacility.Note:TheCityAdministrativeOfficerreportsthat between$2.1and$6.2millioninsavingscouldberealized.TheBudgetChallengeusestheaverage,$4.1 million,forthepurposesofthisexercise. ArgumentsFor: ArgumentsAgainst: TheCityshouldtakeeveryopportunitytoreduceitscosts Thereisnoguaranteethataprivatecompanywouldbe

andimprovethequalityandefficiencyofConvention Centerservices.Concernsovertheimpactsofpublic privatepartnershipscanbeaddressedbystructuring contractsinamannerthatholdsthirdparty organizationsaccountabletotheCity'sgoals.

abletoimprovetheLACC'soperations.Ifmanagementis turnedovertoathirdparty,employeesmaybelaidoff, operationsmaysufferandfeesmayskyrocket.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background
TheLosAngelesZoo(http://www.lazoo.org)ishometomorethan1,100mammals,birds,amphibiansandreptiles representingmorethan250differentspeciesofwhich29areendangered.Inaddition,theZoosbotanicalcollection comprisesseveralplantedgardensandover800differentplantspecies.TheZooreceivesover1.5millionpeople visitorseachyear.TheLosAngelesConventionCenter(http://www.lacclink.com)performsasaneconomicandjobs enginefortheLosAngelesregionbyservingasadestinationofchoiceforcitywideconventions,exhibitions, tradeshowsandhighprofileevents.Overthepastseveralyears,theCityhasexploredalternativeservicedelivery modelsfortheLosAngelesZooandConventionCenter.SimilartotheCity'scollaborativeeffortswithprivate organizationstorunCityanimalsheltersandculturalfacilities,thesemodelswouldallowtheCitytoprotectand improvemunicipalserviceswhileprovidingtheCitywithfiscalrelief.

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2013LosAngelesBudgetChallenge

RevenueOptions:Licenses,Permits,FeesandFines
(chooseone,both,ornoneatall)

RAISE$6.0MILLION EnsureallLicenses,Permits,FeesandFines(feesforfilmingonCityproperties,creditcardconvenience fees,swimmingpoolfees;animalserviceslicensing,etc.)arefullyrecoveringthecostofadministration. ArgumentsFor: ArgumentsAgainst: Modestincreasestolicenses,permits,feesandfines BusinessesandresidentsinLosAngelesalreadypayhigh arenecessarytoensurethefiscalsustainabilityofCity taxes.TheCityshouldnotincreaselicenses,permits,fees service. andfinesespeciallywhilewearejuststartingtorecover fromtheglobaleconomiccrisis. RAISE$10.0MILLION Improvestreetsweepingoperationsandincreaserevenuebyimposingparkingrestrictionsformore streetsweepingroutes.Vehiclesparkedintheseareasduringrestrictedtimeswillbegivenacitation. (Note:Currently,theCitydoesnotrestrictparkingduringstreetsweepinghoursforallstreetroutes). ArgumentsFor: ArgumentsAgainst: Cleanstreetsarecriticaltotheeconomicvitalityand Imposingmoreparkingrestrictionswilllimitparking qualityoflifeinLosAngeles.Ifrestrictingparkingon availabilityintheCityandmayhavenegativeimpactson morestreetsweepingrouteswillleadtocleaner thelocaleconomy.Furthermore,parkingfinesandfees streetsandincreasedrevenue,thentheCityshould arealreadytoomuchofaburdenforAngelenos.The implementthispolicyoption. Cityshouldnotadoptthispolicy.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background

ForFiscalYear201213,theCityprojectstogenerate$770millionfromLicenses,Permits,FeesandFines (LPFF).ThemajorityofLPFFrevenuecomesfromreimbursementsfromspecialfundsandproprietary departmentstotheGeneralFund.Forexample,thePortofLosAngelesreimbursestheGeneralFundfor legalservicesprovidedbytheCityAttorney'sOffice.

TherestofLPFFrevenuecomesfromthepaymentsmadebyindividualsandbusinessesforlicenses, permits,feesandfinesissuedbytheCity.Forexample,theDepartmentofAnimalServiceschargesfeesto licensedogs.EachyearCityDepartmentsarerequiredtodevelopfeeincreaseproposalstoensurethat theCityisrecoveringthefullcostofprovidingspecificservices.

Page16of20

2013LosAngelesBudgetChallenge

Reserves:TaxRevenue
(chooseone,bothornoneatall)

RAISE$6.0MILLION ExtendtheTaxAmnestyProgramthatencouragesunregisteredbusinesstoremituncollectedBusiness Taxongrossreceipts. ArgumentsFor: ArgumentsAgainst: ExtendingtheTaxAmnestyProgramwillhelp ExtendingtheTaxAmnestyProgrammaycreatea generateadditionalbusinesstaxrevenuewhilegiving disincentiveforbusinessestopaytheirtaxesinthe businessestheopportunitytopaydelinquenttaxes. future.Somebusinessesmaywaittopaytheirtaxes untilanewtaxamnestyprogramisofferedtoavoid havingtopaylatepenalties. RAISE$106.0MILLION Increasethesalestaxratebyahalfcent.Note:Thispolicyoptionisestimatedtogenerateover$200 millioninannualrevenue.Inthefirstyearofimplementation,however,theCitywouldrealizeonly$106 millioninnewrevenuefromthismeasure.Seebackgroundinformationbelowformoredetail. ArgumentsFor: ArgumentsAgainst: IncreasingtheSalesTaxwillprovidesubstantial Angelenosarealreadyburdenedbyrecentlyapproved closureoftheexistingstructuraldeficitwhile Statetaxhikes.Anadditionalincreasetothesalestax preventingseverecutstoCityservicesandpersonnel. willhaveadisproportionalimpactonlowincome familiesandindividuals,andmayendangertheCity's localeconomy.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background

Approximately$3.3billionoftheCity's$4.5billionGeneralFundBudgetcomesfromtaxrevenue. CaliforniaProposition218requiresthattheCityobtainvoterapprovalofallnewtaxesortaxincreases. *FortheupcomingMarch2013primaryelection,theCityCouncilhasplacedameasureontheballotto increasethesalestaxrateto9.5%,whichisequivalenttothetaxratesintheCityofSantaMonicaand CulverCity.Currently,theCityofLosAngeles'salestaxrateis9.00%,ofwhichtheCityreceives0.75%.If themeasureisapproved,theCity'ssharewillincreaseto1.25%.Thesalestaxmeasureisestimatedto generateover$200millionannuallyinnewrevenue.However,thesalestaxincreasewouldnotgointo effectuntilOctober1st,2013andwouldthereforegenerateonly$106millioninrevenueinFiscalYear 201314.

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2013LosAngelesBudgetChallenge

OtherOptions:ReserveFund
(chooseone)

MAINTAINSTATUSQUO MaintainthecurrenttheReserveFundbalanceof$225million,whichrepresentsapproximately4.9%of theGeneralFund. ArgumentsFor: ArgumentsAgainst: AhealthyReserveFundiscriticaltotheCitysfiscal TheCityneedstoimplementavarietyofstrategiesto sustainability.TheCityshouldprotecttheReserve addressthebudgetshortfall.DippingintotheReserve Fundratherthenuseittobalancethebudget. Fundisanecessarybudgetarystrategythatallowsthe Citytopreserveessentialservicescitywide. REDUCE$22.5MILLION Dipintoreservessetasideforemergenciesandotherunforeseenexpendituresinordertobalancethe City'sbudget. ArgumentsFor: ArgumentsAgainst: Transferringfundsfromthereservesisareasonable Depletingthereservestobalancethebudgetisaone strategythatwillhelpreducethedeficitwithout timesolutiontoanongoingproblem.Ratherthan endangeringtheCitysfiscalsustainability.TheCity endangeringtheReserveFund,theCityshould shouldborrowfromthereservefundtomitigate implementstructuralchangestoitsbudgetbyreducing layoffsuntiltheeconomyrecoversandrevenues expendituresandgeneratingnewrevenue. increase. INCREASE$22.5MILLION ContinuetobuildthereservessotheCityhassufficientfundssetasideforemergenciesandother unforeseenexpenditures. ArgumentsFor: ArgumentsAgainst: TheCityshouldaimtomeetitspolicyofmaintaininga TheCityisfacingasubstantialbudgetgap.Growingthe ReserveFundthatrepresentsatleast5%ofGeneral reserveswillreducefundsavailabletosupportvital Fundrevenues. servicessuchaspublicsafetyandstreetmaintenance.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background

TheCityhasaReserveFundtoassistwitheconomicuncertainties,disastersandcashflowneeds.TheReserve Fundisdividedintotwoaccounts,theEmergencyReserveandtheContingencyReserve.AsofOctober 2012,theReserveFundbalancewas$225million($125MintheEmergencyReserveand$100Minthe ContingencyReserve).ThecurrentReserveFundbalance,whichrepresentsabout4.94%ofGeneralFund revenues,fallsshortoftheCity'spolicytomaintainaReserveFundrepresenting5%ofGeneralFundrevenues. TheCityAdministrativeOfficer(http://cao.lacity.org)andbondratingagenciesadviseagainstutilizingthe ReserveFundtobalancetheCity'sBudgetbecauseitreducestheamountofcashavailabletoaddresseconomic uncertaintiesandnaturaldisasters.

Page18of20

2013LosAngelesBudgetChallenge

OtherOptions:BudgetStabilizationFund
(chooseone)

MAINTAINSTATUSQUO DonotutilizeunanticipatedcurrentyearrevenueandsavingstogrowtheBudgetStabilizationFund, whichwascreatedin2008tohelpstabilizerevenue,supplementtheReserveFund,preventoverspending duringprosperousyears,andmaintainservicelevelsduringfiscallychallengingtimes. ArgumentsFor: ArgumentsAgainst: TheCityhassustainedseverebudgetcutsoverthe ItwouldbeirresponsiblefortheCitytouseonetime pastfiveyears.InsteadofgrowingtheBudget revenueandsavingstorestoreservicesandoperations. StabilizationFund,weshouldutilizeunanticipated TheCityshouldusethesefundstoaddresstheFiscal currentyearrevenuetorestorefundingforcritical Year201314budgetshortfall. servicesandoperations. REDUCE$55.0MILLION UtilizeunanticipatedcurrentyearrevenuegrowthandsavingstogrowtheBudgetStabilizationFund, whichcanthenbeusedtopreventseverecutsnextyearandtoaddresstheGeneralFundshortfall. ArgumentsFor: ArgumentsAgainst: UsingthesefundstoclosetheCity'sFiscalYear2013 ManyCityDepartmentsareoperatingwithinsufficient 14budgetgapisaresponsible,fiscalpolicy. resources.TheCityshouldfundtheseDepartments appropriatelyusinganyunanticipatedrevenuesand savings.

Pleaseusethespacebelowtoprovideadditionalideasandtoshareyourthoughtsaboutthesepolicyoptions.

Background

TheCity'sgeneralfundrevenueishighlysensitivetochangesintheStatebudgetandintheoveralleconomy. Toaddressunanticipatedrevenueshortfalls,theCityhasmadedifficult,yetnecessarydecisionstoreduce criticalCityservicesandoperations.In2008,theCitycreatedtheBudgetStabilizationFund(BSF),tohelp stabilizerevenue,supplementtheReserveFund,preventoverspendingduringprosperousyears,andmaintain servicelevelsduringfiscallychallengingtimes.AccordingtotheCity'sFirstFinancialStatusReport (http://tinyurl.com/cityoflabb4),whichwasreleasedinOctober2012,thecurrentBSFbalanceis$500,000.

Page19of20

2013LosAngelesBudgetChallenge

Pleaseshareyourfeedbackwithus.
ThankyoufortakingthetimetocompletetheLosAngelesBudgetChallenge.Surveyresponseswillbecollected bythefirstweekofMarch,analyzedbytheMayorsOfficewiththeassistanceofNeighborhoodCouncilBudget Advocates,andpresentedtocommunitystakeholdersandtheMayorinMarch.Budgetsurveyresultswillbe postedonMayorVillaraigosa'swebsite(http://mayor.lacity.org/)inMarch2013.

Whatwasthemostimportantorsurprisingthingyoulearned?

Howcanthebudgetchallengebeimproved?

PleaseusethespacebelowtoshareanyadditionalthoughtsorcommentsontheCityofLABudget.

Pleasemailyourcompletedsurveyto: OfficeofNeighborhoodand CommunityServices MayorAntonioR.Villaraigosa ATTN:NCS,AmandaR. 200N.SpringSt.,Room303D LosAngeles,CA90012 Ordropoffyourcompletedsurveyatoneofthefollowinglocationsbetween9amand5pm: CityHall VanNuysCityHall OfficeofMayorAntonioR.Villaraigosa ATTN:MayorsOffice,NCS,AmandaR. Mayor'sReceptionistDesk 14410SylvanStreet,Rm211 ATTN:NCS,AmandaR. VanNuys,CA91401 200N.SpringSt.,Room303 LosAngeles,CA90012

*SurveysmustbepostmarkedordroppedatoffatCityHallorVanNuysCityHallnolaterthanWednesday,February27,2013.

Page20of20

CityofLosAngeles BudgetBackground
FiscalYear201213Budget
TheFY201213operatingbudgetis$7.25billion,consistingofa$4.55 billionGeneralFundandspecialfundsof$2.70billion. AMOUNT ($Mil) GeneralFund SpecialFunds TOTALOPERATIONALBUDGET ProprietaryDepartmentBudgets Airports Harbor WaterandPower Grants&OtherNonBudgeted Sources TOTALCITYGOVERNMENT 4,341 954 6,708 1,337 3,534 994 9,986 0 ReserveFund:TheCityhasaReserveFundwhereunrestricted cashissetasideforunforeseenexpendituresand emergencies. ThecurrentReserveFundbalanceof$227.0 millionrepresents4.94%oftheGeneralFund. 4,550 2,696 7,246 AUTHORIZED POSITIONS 21,724 10,093 31,817
Specialfundsareusually approvedby LAVotersforaspecific purposesuchassewer construction. TheGeneralFundsupportsbasicmunicipal servicessuchaspoliceprotection,fireservices, parks,libraries,transitservices,sidewalk repair,publicworksservices,andavarietyof otheressentialservices.

FY201213ADOPTEDBUDGET
SPECIAL FUNDS $2.70B GENERAL FUND $4.55B

$20,586

46,331

ThestructuralimbalancebetweenCityrevenuesandexpendituresisprimarilylimitedtotheGeneralFund.Escalatingoperational costshave significantlythreatenedtheCitysfiscalsustainabilityanditsabilitytoprovideessentialservicestothepeopleofLosAngeles.Forinformation aboutactionstakentoaddressthestructuraldeficit,pleaseseepagetwo.

MAJORGENERALFUNDREVENUESOURCES
GFREVENUESOURCE AMOUNT ($Mil) PropertyTax PropertyTaxExCRA Licenses,Permits,Fees&Fines UtilityUsers Tax BusinessTax SalesTax PowerRevenueTransfer MiscellaneousRevenues TOTAL $1,457 $49 $770 $623 $450 $333 $249 $619 $4,550 %OFGF 32% 1% 17% 14% 10% 7% 5% 14% 100%

MAJORGENERALFUNDEXPENDITURES
GFEXPENDITURE AMOUNT ($Mil) PoliceDepartment PensionsandPostRetirementBenefits HealthCareandWorkers Comp FireDepartment Recreation&ParksandLibrary Infrastructure(PublicWorks,Planning, Transportation,andBuildingandSafety) OtherExpenditures(Otherdepartments, Utilities,LiabilityClaims) TOTAL $1,136 $891 $553 $466 $230 $153 $928 $4,550 %OFGF 28% 19% 13% 11% 5% 3% 20% 100%

BudgetDevelopmentProcessandOpportunitiesforCommunityInput
Eachfall,theMayorreleasesapolicylettertoallCityDepartmentsthatoutlineshisbudgetgoalsandprovidesbudgetinstructionsforthe upcomingyear. InNovember,CitydepartmentssubmittheirbudgetstotheOfficeoftheMayorandtheCityAdministrativeOfficer(CAO).This isfollowedbyaperiodofcollaborativedecisionmakingbetweentheCAO,communityrepresentatives,andtheCityCouncilwhoassistthe MayorinformulatingtheProposedBudget. TheMayorthensubmitshisProposedBudgettotheCityCouncilonorbeforeApril20th.
MayorsCommunity BudgetDay Mayors RegionalBudget Dayand NCBudget AdvocatesMeet withMayor CouncilB&F CityCouncil Cmte Review Review Proposed Proposed Budget Budget

MeetingswithNeighborhoodCouncil(NC) BudgetAdvocates

Mayors Budget Survey isReleased

Budget Survey Resultsare Collected

Sep

Oct

Nov
BudgetKickOff Meetingswith Departments

Dec

Jan

Feb

Mar

Apr
MayorReleases FY201314 Proposed Budget (April20th)

May

Jun

MayorReleases201314 BudgetPolicyLetter

MayorsOfficeandCity AdministrativeOfficerReview Departments ProposedBudgets

BudgetHearingswith Departments

DepartmentFY201314 ProposedBudgetsDue

ControllerReleasesEstimateof RevenueReport

CityCouncil Adopts FY201314 Budget

ActionsTakentoAddresstheCitysFiscalCrisis
SummarizedbelowareactionstheCityhastakeninrecentyearstobalanceitsbudget.
AUSTERITYMEASURES Eliminatednoncorefunctionsincluding: CommissionontheStatusofWomen(CSW) CommissionforChildren,Youth&Families(CCYF) HumanRelationsCommission(HRC) EnvironmentalAffairsDepartment(functionspartially movedtootherdepartments) Treasurer(consolidatedwiththeOfficeofFinance) SuspendedGeneralFundedCapitalProjects Freezeontravel,equipmentandfurniturepurchases ReducedCityfleet OPERATIONALEFFICIENCIES Improvedbillingandcollections Replacedandupgradedparkingmeterinfrastructure PartneredwithnonprofitsforoperationsoftheEastSanFernando ValleyAnimalShelterandanumberofCulturalFacilities REVENUEENHANCEMENTS Obtainedfullcostrecoveryforreimbursableservices Maximizeduseofspecialfundsandgrants Refinanceddebtforlowerinterestrates Protected$270MinCommunicationUsers Taxrevenueby obtainingvoterapprovalofMeasureSin2008 RENEGOTIATEDLABORCONTRACTS Costsavingsprovisionsinclude: Salaryreductionsandrestructuring Healthcareplandesignchangeforactiveemployees Unpaidholidays Reductionincashpaymentofovertime PENSIONANDRETIREEHEALTHREFORM Obtainedactiveemployeecontributiontowardspost employmentbenefits Frozemedicalsubsidyforactiveemployeesthatdonotmake additionalcontributiontowardretireehealth Obtainedvoterapprovalfornewretirementtierforsworn hires Createdanewcivilianretirementtierthatincreased retirementageandcappedtheretirementallowance. WORKFORCEREDUCTIONS Over5,000GeneralFundpositionseliminatedsinceFY0708 throughthefollowing: EarlyRetirementIncentiveProgram(ERIP) LayoffsandtransferstononGeneralFund departments Vacantpositioneliminations NewhiringstrictlylimitedthroughManagedHiring Committee

AUTHORIZEDCITYWIDESTAFFING
40,000 AuthorizedPositions 30,000 22,718 20,000 10,000 0 200809 200910 201011 201112 AllOthers 201213 Police(sworn&civilian)
Source:AdoptedFY201213Budget

36,971

35,864

32,965

32,274

31,817

21,852

19,225

18,597

18,170

14,253

14,012

13,740

13,677

13,647

FourYearFiscalOutlook(GeneralFund)
PreviousExpenditureProjection PreviousRevenueProjection CurrentExpenditureProjection CurrentRevenueProjection
$5,295

$5,200
$5,056

$5,167

$(265) $(297)

$5,000
($millions)

$4,837

$5,030

$(327)
$4,870

InDecember2010,theFY201314budget deficitwasestimatedtogrowtoover$500 million.Budgetbalancingmeasures implementedoverthepastthreeyears,have significantlyreducedthestructuraldeficit.As ofOctober2012,theCityestimatesa$216 milliondeficitforFY201314,primarilydueto therisingcostsofemployeecompensation, pensionsandbenefits. InpreparationoftheFY201314Proposed Budget,MayorAntonioR.Villaraigosa is reviewingopportunitiestofurtherreducethe CitysmajorcostdriversandtogrowtheCitys revenuebase.

$4,800

$(216)
$4,600
$4,551 $4,621 $4,729

$4,400

$4,200 201011 201112 201213 201314 201415 201516 201617

SOURCE:CityAdministrativeOfficer,FirstFinancialStatusReport,October2012

ORGANIZATION OF THE CITY OF LOS ANGELES

ELECTORATE
KEY
Operating
COUNCIL 15 Member Governing Body MAYOR Chief Executive

ELECTED OFFICIALS
Chief Legislative Analyst

CITY ATTORNEY

CONTROLLER Support

CHARTER OFFICES AND CHARTER DEPARTMENTS HEADED BY COMMISSIONS

City Administrative Officer

City Clerk

Finance/ City Treasurer

Fire (Commission)

Police (Commission)

Ethics Commission (Commission)

Operating & Support

CHARTER DEPARTMENTS WITH CITIZEN COMMISSIONS

Personnel

Planning

Neighborhood Empowerment

ORDINANCE DEPARTMENTS

Community Development

Information Technology Agency

Employee Relations Board

General Services

Housing

Aging

Emergency Management

ORDINANCE DEPARTMENTS WITH CITIZEN COMMISSIONS

Building & Safety

El Pueblo

Cultural Affairs

Convention Center

Transportation

Zoo

Animal Services

Disability

INDEPENDENT CHARTER DEPARTMENTS HEADED BY CITIZEN COMMISSIONS

Los Angeles World Airports

Harbor

Department of Water & Power

Library

Recreation & Parks

City Employees Retirement System

Fire & Police Pension System

STATE LAW DEPARTMENTS HEADED BY CITY COMMISSIONS

Housing Authority

CHARTER DEPARTMENT WITH FULL-TIME COMMISSION

Bureau of Contract Administration Bureau of Engineering

Board of Public Works

Bureau of Sanitation

Bureau of Street Lighting

Bureau of Street Services

DepartmentalAppropriationsandAuthorizedPositions

Source:AdoptedFY201213Budget,CAO

FormoreinformationabouttheCitysbudget,pleasevisit:

http://mayor.lacity.org/issues/balancedbudget