1. Adoption of the Fiscal Year 2019 Recommended Operating Budget
Joint Finance Committee and City Council Meeting – Item C.5.
City Council Meeting – Item 25
June 18, 2018

2. Fiscal Year 2019 Recommended Operating Budget*
* Includes reinstatement of 5 defunded Police Officer positions

3. Amendments to Recommended Budget
Three amendments to the originally presented Recommended Operating Budget:
Defund but retain the five Police Officer positions recommended for reduction
No financial impact
Increase recommended revenues in the Library Special Tax Fund by $108,431
Reduce recommended revenues in the Water Fund by $1.7 million based on projected retail sales

4. Recommended Actions
Close the public hearing and adopt by resolution the 2019 Operating Budget as amended.
Adopt a resolution determining the General Fund Transfer from the Light and Power Fund.
Direct the City Attorney to prepare an amendment to the PMC moving the responsibility for the Foothill Workforce Development Board to the City Manager’s Office.

5. Recommended FY19 Operating Budget
Thank you

6. Power Fund Transfer
Gross Income from the sale of electric energy at rates and charges fixed by ordinance.
Gross Income Calculation includes:
Base Rate Revenue
Green Sales
Energy Service Charge
Transmission Revenue
FY 2017 Gross Income - $168,462,773.08
10% of Gross Income - $16,846,227.31

7. Total Avail. For FY 2018 Transfer
Power Fund Transfer
Net Income Calculation to determine transfer:
Operating Net Income for FY
General Fund Transfer
Less Principal Debt Service
Transfer may not exceed one-half of Net Income Calculation Amount each for Sections 1407 and 1408 of the Municipal Code (total transfer cannot exceed 100% of net income)
FY 2017 Net Income
FY 2017
GF Transfer
FY 2017 Principal Payments
Total Avail. For FY 2018 Transfer
Actual
FY Transfer
% of Avail.
13,700
17,371
(11,290)
19,781
16,846
85%

8. Appropriations By Category – All Funds (In millions)

9. Appropriations By Category – General Fund (In millions)

10. Revenues By Category – General Fund (In millions)

11. Appropriations by Department – General Fund (In millions)

12. 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

13. 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

14. Projected Fiscal Trends
Department of Finance

15. General Fund Reserve

16. Proposed Reductions to Close the Gap for FY19

17. Residents Want to Maintain Services

18. 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

19. Current and Projected Fiscal Trends

20. Projected Fiscal Trends
Department of Finance