1. Fiscal Year 2019 Recommended Operating Budget
Item 10
May 7, 2018

2. Fiscal Year 2019 recommended operating budget

3. Appropriations by category – All funds (in millions)

4. Appropriations by category – General Fund (in millions)

5. Revenues by category – General Fund (in millions)

6. Appropriations by department – General Fund (in millions)

7. Key Challenges Maintain Essential Services
Address aging infrastructure
CIP appropriations of $83.45 million
$745 million future funding needs
Fire stations $100+m
911 emergency response communications $8m
Street lighting $21m
Sidewalks $12m
Maintain Essential Services
Eliminate structural deficit
Preserve General Fund reserve levels
Falling below 20% target
Should be adding $1.6m for FY19
Additional costs for CSB and YWCA

8. Fiscal reality Significant underinvestment in infrastructure
Recommended FY19 budget is balanced
$2 million in reductions (14.8 FTEs)
$1.2 million in new revenues
$250,000 in fund shifts
Significant underinvestment in infrastructure
General Fund appropriations to capital only $1.16m
Without additional revenues
Reductions will be required each and every year
FY 18 $4.1 million and 14 FTEs
Essential City services will be at risk

9. Projected fiscal trends
Department of Finance

10. General Fund Reserve

11. Proposed reductions to close the gap for FY19

12. Residents want to maintain services

13. Financial Stability Departmental budget reviews to begin May 13th
Joint Finance Committee/City Council meetings 3 p.m.
Schedule available on City website
On July 16th staff to present resolutions placing a proposed revenue measure on the November 2018 ballot
As directed by City Council on March 5th

14. Recommended FY19 Operating Budget
Thank you

15. Year Approved by Voters
LA County Tax Rates
City
Local Tax %
Year Approved by Voters
Commerce
0.5
2012
Compton
1.0
2016
Culver City
Downey
El Monte
2008, 2013, 2017
Inglewood
2006
La Mirada
Long Beach
Lynwood
Pico Rivera
2008
San Fernando
2013
Santa Monica
2010, 2016
South El Monte
2010
Southgate

16. Current and projected fiscal trends

17. Projected fiscal trends
Department of Finance