City Of Los Angeles Geographic Revenue Analysis For Fiscal Year 1998-1999

Note this file was converted to html from a word document provided through the Harbor Study Foundation from LA City 12-18-00 and Indexed

Preliminary data was released December 2000 and the final report in February 2001. The changes between the Draft and the final version as marked green strikeout for deletions and red for insertions. Grammatical and layout changes are ignored

TABLE OF CONTENTS

1 Introduction

2 Methodology

3 General Fund Revenues

4 Special Purpose Revenues

Sewer Construction and Maintenance Fund
Sewerage Facilities Surcharge
Industrial Waste Quality Surcharge
Special Gas Tax
Sanitation Equipment Charge Special Revenue Fund
Prop A
Prop C
Convention Center Revenue Fund
Stormwater Pollution Abatement Fund
Special Parking Revenue Fund
Los Angeles Convention and Visitor’s Bureau Trust Fund
Zoo Enterprise Trust Fund
Arts and Cultural Facilities and Services Trust Fund
Rent Stabilization Trust Fund
Telecommunications Liquidated Damages and Lost Franchise Fees Fund
Code Enforcement Trust Fund
Mobile Source Air Pollution
El Pueblo de Los Angeles Historical Monument Revenue Fund
City Ethics Commission Fund
City Employees Ridesharing Fund
Major Projects Review Trust Fund
Municipal Housing Trust Fund
Park and Recreational Sites and Facilities Fund
Pershing Square Project
Older Americans Act Fund
Warner Center Transportation Trust Fund
Staples Arena Special Fund
Revenues Not Yet Analyzed
Supplemental Law Enforcement Services Fund
Coastal Transportation Corridor Trust Fund
Ventura/Cahuenga Corridor Specific Plan

No Geographic Determination
No Revenues Generated
Revenues Evaluated in Other Budgets

5 Additionally Budgeted Funds

6 References

LIST OF TABLES

Summary of Special Fund Revenues by Source Region, FY 1998-99
Sewer Construction and Maintenance Fund, FY 1998-99
Sewer Construction and Maintenance Fee, FY 1998-99 Revenue Distribution
Special Gas Tax Street Improvement Fund FY 1998-1999
Special Gas Tax Street Improvement Fund, FY 1998-99 Revenues
Sewer Construction and Maintenance Fund, FY 1998-99
Sanitation Equipment Charge, Receipts FY 1998-99
Proposition A Local Transit Assistance Fund, FY 1998-1999
Proposition A Local Transit Assistance Fund, FY 1998-1999
Proposition C Anti-Gridlock Transit Improvement Fund, FY 1998-1999
Proposition C Anti-Gridlock Transit Improvement Fund, FY 1998-1999
Convention Center Revenue Fund, FY 1998-99
Stormwater Pollution Abatement Fund, FY 1998-99
Stormwater Pollution Abatement Fund, Receipts FY 1998-99
Special Parking Revenue Fund, FY 1998-99 Revenues
Parking Meter Revenues, FY 1998-99
Special Parking Revenue Fund Receipts, FY 1998-99
Los Angeles Convention and Visitor’s Bureau Trust Fund, FY 1998-1999 Revenues
Los Angeles Convention and Visitor's Bureau Trust Fund, FY 1998-99
Zoo Enterprise Trust Fund, FY 1998-99
Arts and Cultural Facilities and Services Trust Fund, FY 1998-1999 Revenues
Arts and Cultural Facilities and Services Trust Fund, Estimated Revenues, FY 1998-99
Rent Stabilization Trust Fund, FY 1998-1999
Rent Stabilization Trust Fund, FY 1998-1999
Telecommunications Fund Revenues, FY 1998-99
Telecommunications Development Trust Fund, FY 1998-99 Revenues
Code Enforcement Trust Fund, FY 1998-1999
Code Enforcement Trust Fund, Program Year Receipts, FY 1998-1999
Mobile Source Air Pollution Reduction Trust Fund, FY 1998-1999
Mobile Source Air Pollution Reduction Trust Fund, FY 1998-1999
El Pueblo de Los Angeles Historical Monument Revenue Fund, FY 1998-99
City Ethics Commission Fund, FY 1998-99
City Ethics Commission Fund, FY 1998-99 Revenues
City Employees Ridesharing Fund Revenues, FY 1998-99
City Employees Ridesharing Fund, FY 1998-99
Major Projects Trust Fund Revenues, FY 1998-99
Major Projects Trust Fund, Revenues, FY 1998-99
Municipal Housing Finance Fund, FY 1998-1999
Municipal Housing Trust Fund, Receipts, FY 1998-1999
Park and Recreational Sites and Facilities Fund, FY 1998-1999 Revenues
Park and Recreation Sites and Facilities Fund Revenues, FY 1998-99
Pershing Square Project, FY 1998-99
Older Americans Act Fund, FY 1998-1999 Revenues
Older Americans Act Fund, FY 1998-99
Warner Center Transportation Fund, FY 1998-99
Staples Arena Special Fund, FY 1998-99
FY 1998-99 Revenues Not Yet Analyzed
Special Fund Revenues Evaluated in Other Budgets, FY 1998-99
Supplemental Law Enforcement Services Fund, Estimated Revenues, FY 1998-99

LIST OF MAPS

Geographic Study Areas The report failed to include a map, we have linked the map from the petition.

SECTION 4

SPECIAL PURPOSE FUNDS

Special Purpose funds are revenues dedicated for specific purposes identified by Ordinance. Expenditure of these funds is restricted for specified purposes.

Summary of Special Purpose Funds Geographic Analysis

As with the General Fund, each Special Purpose Fund revenue source has unique characteristics that determine how the revenues are generated and where they are generated from within the City. Table 28 shows the regional source of Special Fund revenues for FY 1998-1999. Methodologies used to determine the regional source of these revenues are provided in the following section of this report.

It should be noted that many special purpose funds contain receipts that are received as a fee for service. Any change in the type of services provided could alter the fees collected. This analysis reflects the actual conditions present in FY 1998-99. Any extrapolation to other years should be extremely careful to assert similar assumptions or to make appropriate adjustments based on known variables for future scenarios. The fact that these revenues are fees for service also severely limits how funds can be used.

Due to the complex nature of Special Purpose Funds, a unique set of problems arise that were not present in the General Fund section of this report. A variety of transactions are recorded in each fund. Several funds receive receipts from multiple sources, so each requires a discreet analysis. In addition to receipts, many funds also carry cash balances, generate interest, make payments to or receive payments from the General Fund, and borrow from or loan to other special funds. Many of these revenues have no geographic origin, and cannot be split geographically. Others have been determined geographically in another fund and should not be geographically allocated again here. Finally, revenues such as cash balances are held over from previous years and from multiple sources. Extensive auditing would be required to analyze the constituents of the cash balances before a method could determine geographic designation for these revenues.

1 This column indicates the methodology that was used to determine the source of this revenue geographically. Geocode indicates that data were geocoded as described in the introduction. Population indicates that population data described in the introduction were used. Alternate indicates that an alternate methodology was developed to allocate these revenues. Various indicates that several methodologies were used to allocate these revenues.

2 Several revenue sources have no geographic context to their generation that can be determined. This line item includes those revenue sources that could not be geographically distributed, including cash balances in each of the special purpose funds. An explanation of why these funds are not geographically distributed is provided below. These revenues were included in this table under this heading to ensure that the total revenues in special purpose funds in this analysis matches the total revenues in special purpose funds in the Budget for the Fiscal Year 2000-2001.

3 Funds are transferred to several Special Purpose Funds from off-budget revenue sources. This line item includes the Community Development Trust Fund, HOME Investment Partnerships Trust Fund, and Housing Opportunities for Persons with AIDS Trust Fund. An explanation of why these funds are not geographically distributed is provided below. These revenues were included in this table under this heading to ensure that the total revenues in special purpose funds in this analysis matches the total revenues in special purpose funds in the Budget for the Fiscal Year 2000-2001.

4 All revenues could not be allocated within the time required for the delivery of this report. These revenues may be analyzed at a later date and this report may be revised to include additional data. These funds were identified in the introduction to Section 4 of this report and in several tables throughout Section 4.

5 Several of the Special Purpose Funds include loans or payments to other funds or agencies that are subtracted from the revenues before determining the actual receipts for FY 1998-99.

To index

Sewer Construction and Maintenance Fund

Monies deposited into the Sewer Construction and Maintenance Fund are expended only for sewer and sewage-related purposes, including but not limited to industrial waste control, water reclamation purposes, funding of the Wastewater System Revenue Bond Funds created by Section 5.168.1 of the Los Angeles Administrative Code, and funding of the Sewer Operation and Maintenance Fund and the Sewer Capital Fund as provided in Sections 64.19.3 and 64.19.4 of the Municipal Code. Expenditures are made from the fund as provided in the budget or by Council resolution unless provided otherwise by ordinance. In FY 1998-99, the City received $513,379,122 in various sewer fees. Receipts to this fund account for 45% of the special purpose funds and 13% of the total operating budget. Table 29 shows the source of revenues in this fund.

Methodology

Several methodologies are required to evaluate funds in the Sewer Construction and Maintenance Fee special purpose fund. Several sources of revenues contribute to this fund as a result very different program requirements. Methodologies are provided for the Sewerage Facilities Surcharge and Industrial Waste Quality Surcharge. Revenues from the Operating and Maintenance Charge and Capacity Privileges are revenues generated from the 27 contract agencies. These revenues have been assigned to the Los Angeles study area entirely as the contracts with these agencies involve the transfer of sewage through Los Angeles to the Hyperion Treatment Plant in Playa del Rey. Revenues in the Cash Balance, Grant Reimbursements, FEMA/OES Reimbursements, litigation settlements, Miscellaneous, and Additional Revenue Debt line items either cannot be distributed geographically or should not be considered receipts for the purpose of this study. As indicated earlier, revenues such as cash balances do not indicate the actual receipts that accrue to these areas. To index

Sewerage Facilities Surcharge

Address level data were obtained from the Department of Water and Power billing system for sewer fees in FY 1998-99. Data extracted from the database were Sewer Service fee charges for each property and property address. Addresses were geocoded as described earlier using the Code 1 software. One study area was then assigned to each property with the GIS and sewer fees were summed by area. Proportions of the Citywide total were then calculated.

Proportions would have been rounded, but this resulted in a sum less than the total revenues collected. As a result, percentages for this item were taken to two decimals.

Interest on idle funds was distributed using the same proportions developed under the sewerage facilities surcharge.

To index

Industrial Waste Quality Surcharge

A surcharge to treat industrial waste is charged against businesses that produce extra- strength quality sewage. The fee is based on the proportion of flow and strength placed in the waste treatment system. There are 271 accounts that pay the industrial waste quality surcharge and five of those accounts pay approximately 38% of total surcharge collected. One account, located in the San Fernando Valley, accounts for nearly 25% of the total surcharge collected. The Bureau of Sanitation provided geographic data for the source of surcharge revenues. The Bureau determined the number of surcharge accounts in each area. The actual revenues from the top five accounts paying the fee were determined geographically and subtracted from the total surcharge payment in FY 1998-99. The remaining surcharge revenues were then split geographically by the number of accounts per geographic area. Revenues from the top five accounts were then added to this value to determine the total revenues per study area.

Analysis

The regional source of Sewer Construction and Maintenance Fee Special Fund revenues are shown in Table 30.

Issues

When the sewer system is considered as a whole and as currently structured, costs associated with the system are distributed across the City. If the City breaks into several parts, the relationship of the secession areas to the City and sewer services will change. Due to the longer distance between the Valley and the City’s sewage treatment facility, costs to treat Valley sewage are higher and these costs will not be shared across an area a large as the City is now. Further, the Tillman Water Reclamation Plant in Van Nuys and the Los Angeles/Glendale Water Reclamation Plant in Atwater Village are more expensive to operate due to the type of treatment at this facility and the size of the facility. As a separate City, the Valley may have to increase revenues to cover costs associated with a newly reconfigured sewer system. To index

Special Gas Tax Street Improvement Fund

A sum equal to 1.315 cents per gallon of the net revenue derived from the State gasoline tax and 2.590 cents per gallon from the diesel fuel tax is apportioned monthly to cities in the proportion that the population of each city bears to the total population of all cities in the State in accordance with Section 2107 of the Streets and Highways Code. A sum equal to 1.04 cents per gallon derived from the State gasoline tax is apportioned among counties by vehicle registration, among cities and unincorporated areas of counties by assessed valuation, and among cities within counties by population in accordance with Section 2106 of the Streets and Highways Code.

As a result of the passage of Proposition 111 in June of 1990, the 9 cents per gallon gas and diesel taxes were increased to 14 cents on August 1, 1990 and 1 cent per gallon each January 1 until January 1, 1994. A sum equal to the net revenues derived from 11.5 percent of taxes in excess of 9 cents per gallon is allocated to cities in the proportion that the population of each city bears to the total population of all cities in the State in accordance with Section 2105 of the Streets and Highways Code.

The Federal Aid Urban Program (FAUP) provided grants to finance the upgrading of the most heavily traveled highways of the Federal-Aid Urban System. The FAU program expired in 1991 and was replaced by the Surface Transportation Program (STP).

Table 31 shows the revenues received in FY 1998-99 for the Special Gas Tax Street Improvement fund. In FY 1998-99, the City received $89,565,317 in various gas tax revenues. Receipts in the Special Gas Tax Fund account for 8% of the special purpose funds and 2% of the total operating budget.

To index

Methodology

Special gas tax revenues are distributed to local jurisdictions based on population. This analysis distributes these revenues based on population, as discussed in the methodology section of this report. Of the 12 line items in the Special Gas Tax fund, only the Section 2105, 2106, 2107, and Interest line items were distributed geographically. Additional research is required to determine whether the FAUP and STP grant receipts can be allocated geographically. The other items are reimbursements and cash balances that cannot be allocated.

Analysis

As stated previously, this analysis evaluates receipts only. Additional revenues are included in this fund, but they do not have a geographic base of generation or do not provide an indication of potential receipts from the three study areas. Table 32 includes receipts from the Section 2105, Section 2106, and Section 2107. The other revenue sources are reimbursements that cannot be geocoded.

To index

Sanitation Equipment Charge

The Sanitation Equipment Charge is imposed on all single-family dwellings in the City and upon multiple unit dwellings for which the City provides refuse collection services. All receipts from the Sanitation Equipment Charge (Section 66.40 et seq, in Article 6.1 of Chapter VI of the Los Angeles Municipal Code) are deposited in the Sanitation Equipment Charge Special Revenue Fund (Section 5.121.5 of the Los Angeles Administrative Code). Funds are used for principal and interest payments, lease payments, direct acquisition, and associated expenses to acquire and repair sanitation equipment utilized in the collection and disposal of household refuse. In FY 1998-99, the City received $48,561,017 in sanitation revenues. Receipts to the Sanitation Equipment Charge special purpose fund account for 4% of the special purpose funds and 1% of the total operating budget. Table 33 shows the source of revenues in this fund.

To index

Methodology

The Sanitation Equipment Charge (SEC) is placed on the Department of Water and Power service bill. Actual billing data for FY 1998-99 were not available, so a proxy was developed to determine the billing amount for each property in the City, including charges for extra capacity. An extra capacity fee is charged when households request additional trash bins. Data for properties that are billed for the Sanitation Equipment Charge were identified. The monthly fee of $6 was multiplied by 12 to determine the estimated annual charge for each property. A similar formula was used to calculate extra capacity charge for those properties with additional trash bins.

Addresses were then geocoded with the Code 1 software. One study area was then assigned to each property with the GIS, then the estimated charge was summed by study area. Proportions of the Citywide total were then calculated and applied to the actual revenues collected in FY 1998-99. The proportion of interest revenues was split based on the proportion of SEC revenues. No geographic determination was made for Other revenues and Sale of Salvage Vehicles revenues.

Analysis

Table 34 shows the geographic source for Sanitation Equipment Charge revenues.

To index

Proposition A Local Transit Assistance Fund

Public Utilities Code Section 130350 provides that the Los Angeles County Transportation Commission may adopt a sales tax within the County, provided that it is approved by a majority of the electors. In 1980, the voters in Los Angeles County approved the imposition of an additional one-half cent sales tax to (a) improve and expand existing public transit Countywide, including reduction of transit fares, (b) construct and operate a rail rapid transit system, and (c) more effectively use State and Federal funds, benefit assessments, and fares. The City receives an allocation from a 25 percent share of the revenue collected, based on the City's percentage share of the population of Los Angeles County. Thirty-five percent of the proceeds are allocated to the Los Angeles County Transportation Commission for construction and operation of a rail system and 40 percent is allocated to the Commission for public transit purposes. In FY 1998-99, the City received $71,647,024 in transit revenues. Receipts in the Proposition A fund account for 6% of the special purpose funds and 2% of the total operating budget. Table 35 shows the source of revenues in this fund.

To index

Methodology

Proposition A Local Transit funds are distributed to local jurisdictions based on population. This analysis estimates the share of these revenues per study area based on population, as discussed in the methodology section of this report.

Analysis

As stated previously, this analysis evaluates receipts only. Additional revenues are included in this fund, but they do not have a geographic base of generation. Table 36 includes only the receipts and interest line items indicated above in Table 35. Front Funds/Matching Funds are not analyzed. These are reimbursements of revenues already expended. Transit Scrip is not included in a regional analysis. Scrip is sold by the Department of Aging through local senior centers. No data are currently available that indicates the amount of revenues generated in sales from each center. If data becomes available, scrip revenues will be allocated regionally.

To index

Proposition C Anti-Gridlock Transit Improvement Fund

Public Utilities Code Section 130350 provides that the Los Angeles County Transportation Commission may adopt a sales tax within the County, provided that it is approved by a majority of the electors. In 1990, the voters in Los Angeles County approved the imposition of an additional one-half cent sales tax to improve transit service and operations, reduce traffic congestion, improve air quality, efficiently operate and improve the condition of streets and freeways utilized by public transit, and reduce foreign fuel dependence.

The City receives funds from a 20 percent share of the revenues collected based on a per capita allocation. Funds may be used for public transit, paratransit, and repairing and maintaining streets used by public transit. In FY 1998-99, the City received $41,824,110 in Prop C revenues. Receipts in the Proposition C fund account for 4% of the special purpose funds and 1% of the total operating budget. Table 37 shows the source of revenues in this fund.

To index

Methodology

Proposition C Anti-Gridlock Transit funds are distributed to local jurisdictions based on population. This analysis estimates the share of these revenues per study area based on population, as discussed in the methodology section of this report.

Analysis

As stated previously, this analysis evaluates receipts only. Additional revenues are included in this fund, but they do not have a geographic base of generation. Table 38 includes only the receipts and interest line items indicated above in Table 37. Matching Funds- Reimbursements are not allocated regionally due to the difficulty in tracking the year of the original funding, the type of original funding, and the geographic extent of the original funding.

To index

Convention Center Revenue Fund

Section 8.148 of the Los Angeles Administrative Code establishes the Convention Center Revenue Fund. All revenues derived from the operation of the Convention and Exhibition Center are paid into the fund. Such funds shall be used for the expense of operation, management, maintenance and improvement of the Center and for debt service on the outstanding bonds and certificates used to fund construction of the center.

This fund contains revenues generated by the Convention Center. The Convention Center is located downtown. As a result, all revenues from this fund are assigned to the City of Los Angeles. Actual revenues for FY 1998-1999 totaled $32,066,615. Receipts in the Convention Center Revenue Fund account for 3% of the special purpose funds and 1% of the total operating budget. Table 39 shows the revenues from each study area for this fund.

To index

Stormwater Pollution Abatement Fund

The Water Quality Act of 1987, adding Section 402(P) to the Federal Water Pollution Control Act, provides that the Environmental Protection Agency shall establish regulations setting forth requirements for stormwater discharges from large municipal storm drain systems. The City enacted a Stormwater Pollution Abatement Charge (Article 4.2 of Chapter 6 of the Los Angeles Municipal Code) on all properties in the City in order to treat and abate stormwater. The charge is based on stormwater runoff and pollutant loading associated with property size and land use. In FY 1998-99, the City received $31,999,840 in stormwater revenues. Receipts in the Stormwater Pollution Abatement fund account for 3% of the special purpose funds and 1% of the total operating budget. Table 40 shows the revenues in this fund in FY 1998-99.

To index

Methodology

The Bureau of Sanitation provides Stormwater Pollution Abatement Charge assessments to the County of Los Angeles Assessor. Assessments are based on stormwater runoff and pollutant load associated with size and land use of each property in the City of Los Angeles. The Bureau assigned study area designations to every property that received an assessment in FY 1998-99. Stormwater Pollution Abatement Charge assessments were then summed by study area to determine the geographic source of revenues for this charge. The interest line item was assigned to each study based on the geographic source of the abatement charge. No geographic determination was made for the cash balance, grant reimbursement, reimbursement from other funds, and other line items shown in Table 40.

Analysis

Table 41 shows the geographic source of Stormwater Pollution Abatement Fund revenues for FY 1998-99.

To index

Special Parking Revenue Fund

The Special Parking Revenue Fund receives all monies collected from parking meters and City-owned parking lots in the City in accordance with Division 5 of the Los Angeles Administrative Code. Under the ordinance that took effect July 1, 2000, fund monies may be used for the following purposes: 1) purchasing, leasing, installing, maintaining, operating, regulating and policing of parking meters and metered spaces (including the routine and customary issuance of parking citations, for FY 2000-01 only), collection of meter revenue and related expenses; 2) the purchase, improvement, and operation of off-street parking facilities; 3) the painting and marking of streets and curbs required for the parking of motor vehicles within parking meter zones; 4) repayment of borrowed City funds; and, 5) the payment of debt service costs incurred for off-street parking facilities. Off-street parking facilities financed from the Special Parking Revenue Fund should be in close proximity to the business districts in which parking meter zones are established and should be paid from the receipts of parking meters installed in those business districts. In FY 1998-99, the City received $26,000,092 in special parking revenues. This was 2% of the special purpose funds and 1% of the total operating budget. Table 42 shows the FY 1998-99 actual revenues in this fund.

To index

Methodology

The Department of Transportation collects parking meter revenues. Parking meters are assigned to one of 70 parking meter zones. Of these, 10 are located in the San Fernando Valley and 2 are located in the Harbor area. The remainder are located in Los Angeles. There are 41,185 parking meters in the City.

Revenues are collected by parking meter zone. Review of the geographic boundaries of all parking meter zones showed that all 70 zones are entirely located within one of the three study areas. As such, summary reports from the Department of Transportation indicating the year-to- date revenues for FY 1998-1999 were analyzed for parking meter revenues (Table 43). Data for off-street parking lots (Table 43) are available on a lot-by-lot basis. Each off-street parking lot was geocoded by lot address as described above. Geographic areas were then assigned to each lot and the sum of all lots in each area was determined.

Interest income was distributed to each geographic study area based on the same proportions as the percent of receipts.

Analysis

Table 43 shows the source of Special Parking Revenue Fund receipts by revenue source and study area. The great majority of the receipts are received from parking meters in the Los Angeles geographic region.

To index

The proportion of revenues by geographic areas is also shown in the table. The proportion of revenues per geographic area based on data from the Department were used to allocate the actual revenues reported in the budget. Though this is an average of two revenue sources with somewhat different proportional rates by geographic region, the differences between the two revenue sources do not dramatically affect the estimated regional source of revenues. Table 44 shows the estimated source of revenues using FY 1998-99 actual data by study area based on proportions generated in Table 42.

To index

Los Angeles Convention and Visitor’s Bureau Trust Fund

Receipts from the Transient Occupancy Tax equivalent to what would be generated by a tax of one percent shall be placed in the Los Angeles Convention and Visitors Bureau Trust Fund in accordance with Section 21.7.3 of the Los Angeles Municipal Code and Section S.315 of the Los Angeles Administrative Code. Expenditures shall be made solely to finance the promotion and advertising of the City for the purpose of attracting conventions, trade shows and tourism to the City. The Los Angeles Convention and Visitors Bureau shall have the exclusive right to make expenditures from the Fund pursuant to written contract with the City. In addition, a match of General Fund revenues is provided to this fund. In FY 1998-99, the City received $14,342,041 in receipts. This revenue source was 1% of the special purpose funds and less than 1% of the total operating budget. Table 45 shows the actual FY 1998-99 revenues in this fund.

Methodology

Half of this special purpose fund is allocated geographically using the same proportions determined for the Transient Occupancy Tax (TOT) in Section 3 of this report. Sites paying TOT were geocoded at the street address level, then aggregated to the study area geographies as described earlier. The other half of this revenue source is allocated to the study areas based on the proportion of all revenues in the General Fund.

Analysis

As noted in the analysis of TOT, this revenue source is highly determined by geography. The central portions of the City, downtown and the airport, in particular, generate the largest portion of the TOT. The General Fund contribution to this special purpose fund is influenced by a wide range of funds and the variety of geographic origins of those funds. Table 46 shows the estimated amount per study area in FY 1998-99 revenues.

To index

Zoo Enterprise Trust Fund

The Los Angeles Administrative Code establishes the Zoo Enterprise Trust Fund for the purpose of receiving all revenues derived from the operation of the Los Angeles Zoo or activities at the Zoo, as well as all appropriations to finance any of the operations of the Zoo shall be placed in the Fund. Those funds may be used for the operation, maintenance, management, control and improvement of the Los Angeles Zoo and be paid solely from the Trust Fund.

This fund contains revenues generated by the Los Angeles Zoo and a General Fund contribution. The Zoo is located in Griffith Park which would continue to be located in the City of Los Angeles. As a result, all zoo revenues from this fund are assigned to the City of Los Angeles. General Fund revenues are assigned to each study area based on the proportion of general fund revenues by study area shown in Table 3. In FY 1998-99, the fund received $12,346,236 in revenues. This was 1% of the special purpose funds and less than 1% of the total operating budget. Table 47 shows the estimated revenues from each study area.

Issues

Since the zoo receives a portion of its funds from the General Fund, the total budget of the zoo could be impacted by a break-up of the City if this contribution is reduced. To index

Arts and Cultural Facilities and Services Trust Fund

Section 5.115.4 of the Los Angeles Administrative Code establishes the Arts and Cultural Facilities and Services Trust Fund. The Fund shall receive an amount equal to one percent of the total cost of all construction, improvement or remodeling work for each public works capital improvement project undertaken by the City in compliance with the City’s Public Works Improvement Arts Program. Also, an amount from the City’s General Fund equivalent to the amount which would be derived from a Transient Occupancy Tax imposed at a rate of one percent shall be placed in the Fund. Expenditures from the Fund shall be exclusively for: (1) acquisition or placement of publicly accessible works of art; (2) acquisition or construction of arts and cultural facilities; (3) providing of arts and cultural services; (4) restoration or preservation of existing works of art; and (5) the City’s costs of administering the Public Works Improvement Arts Program. Table 48 shows the revenues in the Arts and Cultural Facilities and Services Trust Fund in FY 1998-99. This fund is 1% of special purpose funds and less than 1% of the total operating budget.

Methodology

Nearly all of the receipts to this fund in FY 1998-99 were General Fund revenues. For simplicity, all receipts in this fund were assigned to each geographic area based on the proportion that each area generates general fund revenues. No geographic source was determined for the Cash Balance line item.

Analysis

Table 49 shows the assignment of revues per each study area based on the proportion of general fund revenues in FY 1998-99.

To index

Rent Stabilization Trust Fund

Rental units built before October 1, 1978, with some exceptions, are subject to limits on the amount a landlord can raise rents on a tenant in place. Owners of housing units that must comply with the rent stabilization ordinance are required by law to be registered with the Rental Stabilization Unit of the Los Angeles Housing Department. The annual registration fee is $14 per unit. Receipts are used to operate programs that implement and enforce the rent stabilization ordinance. Fees for the registration of rental units and other charges collected under the Rent Stabilization Ordinance, Section 151 of the Los Angeles Municipal Code are deposited in the Rent Stabilization Trust Fund. This is a fee for service revenue source. In FY 1998-99, the City received $3,264,174 in receipts. This was 1% of the special purpose funds and less than 1% of the total operating budget. Table 50 shows the actual FY 1998-99 revenues in this fund.

Methodology

The Los Angeles Housing Department summarized all revenues received by the Rent Stabilization Trust Fund in FY 1998-99 by census tract. Census tracts were then assigned to each of the three geographic areas in the study. There are 756 census tracts in the City of Los Angeles. Only one tract is split between two of the geographic areas, Tract 1437.00. All data in this tract were assigned to the San Fernando Valley to simplify the analysis.

Analysis

Since the San Fernando Valley built-out later than the City center, and since the development focus in the Valley has been on single family housing, most revenues collected for the Rent Stabilization Trust Fund originate from the central City areas. As Table 47 shows, this fund had a cash balance of $8,252,728 in FY 1998-99 and an additional $3,500,000 that was loaned to other funds. Both the cash balance and the loan are not evaluated in this study. This analysis only focuses on receipts since these other revenues are savings from previous year’s receipts. These revenues do not reflect the FY 1998-99 revenue stream or potential future revenues. Table 51 shows the estimated revenues by study area.

To index

Telecommunications Liquidated Damages and Lost Franchise Fees Fund - Telecommunications Development Account

Section 5.97 of the Los Angeles Administrative Code (LAAC) established the Telecommunications Liquidated Damages and Lost Franchise Fees Fund which receives all monies collected from cable television franchise holders as liquidated damages and franchise fees lost to the City due to unexcused delays in the construction or activation of cable systems. An amendment to the LAAC approved February 21, 1986, established a Telecommunications Development Account within the Fund. The Account receives the two percent (2%) increase in franchise fee payments from cable television and other telecommunications franchise holders, effective May 7, 1987, when the franchise fee was raised from three percent (3%) to five percent (5%) of gross revenues. Monies from this Account may be used for public, educational and municipal access programming and other telecommunications uses in the City, such as funding the costs of the Information Technology Agency. In FY 1998-99, the City received $5,534,877 in telecommunications fees. This was less than 1% of the special purpose funds and less than 1% of the total operating budget. Table 52 shows the actual FY 1998-99 revenues in this fund.

Methodology

Receipts are distributed based on the amount of cable franchise fee paid to the City, as described in the Cable Franchise Fee discussion in Section 3 of this report.

Analysis

Table 53 shows the geographic source of revenues by cable franchise area for FY 1998- 99. In FY 1998-99, $1,708,000 was transferred from the Telecommunications Dev Trust Fund to the General Fund. These revenues are allocated using the same methodology, but that analysis is included in the General Fund section of this report.

To index

Code Enforcement Trust Fund

In 1998, the City Council created the Systematic Housing Code Enforcement Program. This program provides periodic inspections of all multi-family rental housing in the City, regardless of the age of the structure. Each building is charged $1 per unit per month. This is a fee-for-service program. In FY 1998-99, the City received $8,687,020 in fees. This was less than 1% of the special purpose funds and less than 1% of the total operating budget. Table 54 shows the actual revenues in this fund in FY 1998-99.

Methodology

The Los Angeles Housing Department summarized all revenues received by the Code Enforcement Trust Fund in FY 1998-99 by census tract. Census tracts were then assigned to each of the three geographic areas in the study. There are 756 census tracts in the City of Los Angeles. Only one tract is split between two of the geographic areas, Tract 1437.00. All data in this tract was assigned to the San Fernando Valley to simplify the analysis.

Analysis

The Code Enforcement Program began in FY 1998-99. Delayed payment associated with billing resulted in lower than expected revenue collections. The Los Angeles Housing Department actually collected $5.1 million in revenues in FY 1998-99. However, the Department collected an additional $1.7 million in payments intended for FY 1998-1999 that were paid in FY 1999-2000. Table 55 shows the program year revenues that combine the total receipts received in FY 1998-99 with the additional $1.7 million in late payments received in FY 1999-2000. Since the program year revenues more closely reflect the actual receipts for this program than the actual receipts for FY 1998-99 on a year-to-year basis, the geographic source of Code Enforcement Trust Fund receipts will be based on this data.

Issues

A lawsuit challenging the legality of this fee under Proposition 218 is currently pending before the California Supreme Court. The result of this lawsuit could affect the City’s ability to continue collecting this fee. To index

Mobile Source Air Pollution Reduction Trust Fund

In 1990, State legislation added Chapter 7 to Part 5 of Division 26 of the Health and Safety Code to provide for a distribution of funds to cities from a fee imposed on motor vehicle registration in order to implement the California Clean Air Act of 1988. A $4 per vehicle fee is imposed on vehicles in the South Coast Air Quality Management District. Forty percent of revenues are allocated to cities based on population. Funds are to be used for programs to reduce air pollution from motor vehicles. Section 5.345 of the Los Angeles Administrative Code established the Mobile Source Air Pollution Reduction Trust Fund, effective August 31, 1991, to receive fee revenues to implement mobile source air pollution reduction programs. In FY 1998- 99, the City received $4,755,972 in fund receipts. This was less than 1% of the special purpose funds and less than 1% of the total operating budget. Table 56 shows the revenues in this fund for FY 1998-99.

Methodology

Mobile Source Air Pollution funds are distributed to local jurisdictions based on population. This analysis distributes these revenues based on population, as discussed in the methodology section of this report. The same methodology is used to estimate the source of Interest revenues. No geographic determination is made for the cash balance line item.

Analysis

Table 57 includes only the receipts and interest line items indicated above.

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El Pueblo de Los Angeles Historical Monument Revenue Fund

The El Pueblo de Los Angeles Historical Monument Revenue Fund was created for the purpose of receiving all revenues derived from the operation of the Monument or activities at the Monument, including rental and lease receipts (Administrative Code Section 22.630). All costs and expenses incurred in the operation of the El Pueblo de Los Angeles Historical Monument Authority Department shall be paid solely from the Trust Fund. All revenues from this fund are assigned to the City of Los Angeles. Actual revenues for FY 1998-1999 totaled $3,270,211. In FY 1998-99, the City received $2,966,160 in fund receipts. This was less than 1% of the special purpose funds and less than 1% of the total operating budget. Table 58 shows the amount of revenues assigned to each study area.

To index

City Ethics Commission Fund

Section 5.340 of the Los Angeles Administrative Code establishes a special trust fund known as the City Ethics Commission Fund in compliance with Section 603 of the City Charter. All appropriations to finance any of the operations of the City Ethics Commission shall be placed in this fund. All salaries and other expenses of the City Ethics Commission shall be paid from the Fund. Charter Section 603 requires that funds for the Commission shall be appropriated at least one year in advance of each subsequent fiscal year. The fund is administered by the City Ethics Commission or its designee. In FY 1998-99, the City received $1,294,418 in fund receipts. This was less than 1% of the special purpose funds and less than 1% of the total operating budget. Table 59 shows the City Ethics Commission Fund receipts for FY 1998-99.

Methodology

All revenues come from the General Fund. The proportional geographic source of General Fund revenues, then, provides an estimation of the geographic source of these revenues. Geographic source is determined for the General Fund line item. No determination is made for the cash balance.

Analysis

Table 60 shows the estimated source of revenues for this fund by study area.

To index

City Employees Ridesharing Fund

This fund includes receipts from employee parking and van pool fees. Currently, the only employees paying for parking are located in downtown Los Angeles. Fees are collected from van pool for employees located throughout the City, though the destination for great majority of those van pools is downtown. As such, all revenues generated for this fund in FY 1998-99 are assigned to the Los Angeles region. Actual receipts for FY 1998-99 totaled $1,444,243. Proprietary departments manage employee parking independently from this fund.

Section 5.344 of the Los Angeles Administrative Code establishes the City Employees Ridesharing Fund. The first $250,000 collected for employee parking privileges shall be deposited in the City's General Fund, and all employee parking monies collected in excess thereof shall be deposited in the City Employees Ridesharing Fund. All monies deposited in the Fund shall be used to pay the costs, exclusive of salaries, incurred in the City employee ridesharing program to provide for ridesharing enhancements that reduce City employee private vehicle usage in commuting to and from work. The Fund is administered by the Personnel Department. In accordance with the pending implementation of the Memorandum of Understanding on parking and commute options, the 2000-01 revenues include increases in parking fees, vanpool fares, and retention in the Fund of the $250,000 previously deposited in the General Fund. The 2000-01 appropriations include, in accordance with the MOU, an increase in the transit subsidy from a maximum of $15 per month to a maximum of $50 per month.

Table 61 shows the actual revenues received by the City Employees Ridesharing Fund in FY 1998-99. Table 62 shows the amount each study area generates. In FY 1998-99, the City received $1,513,172 in property tax. This was less than 1% of the special purpose funds and less than 1% of the total operating budget.

Issues

The City Council recently approved revisions to the fee structure for employee parking. The effect is that more parking pass holders will be paying for parking and they will be paying higher fees. In addition, employees in the valley and Harbor will begin paying parking fees, generating revenues from those study areas. To index

Major Projects Review Trust Fund

Section 5.401 of the Los Angeles Administrative Code (LAAC) establishes the Major Projects Review Trust Fund. The Fund is administered by the Planning Department to provide necessary staffing, expense and equipment for any project for which planning or processing of requests for entitlements will severely impact departmental resources. This is, in effect, a fee-for- service revenue source.

A separate account shall be established for each major project. All amounts received from developers under Supplemental Fee Agreements, as defined in Section 5.403 of the LAAC, shall be placed in the account established for that major project.

When the City of Los Angeles approves particularly large land use projects, agreements with the developers of these projects include the payment of fes to cover additional City staff costs. These costs are associated with land use planning, zoning, and site and building inspection. In the recent past, the developments paying into this fund include Playa Vista, Warner Center, Sunshine Canyon, and Porter Ranch. In FY 1998-99, the City received $1,995,514 in fund receipts. This was less than 1% of the special purpose funds and less than 1% of the total operating budget. Table 63 shows Major Projects Trust Fund Revenues receipts for FY 1998-99.

Methodology

In FY 1998-99, four projects paid into this fund. Payments were distributed geographically based on the location of the development. Interest was assigned based on the geographic proportion of receipts. The cash balance was not assigned to a geographic area.

Analysis

Table 64 shows the revenues by source area in FY 1998-99. Of the four development agreements that have contributed to this fund in the recent past, three will expire by the end of FY 2000-2001. The only remaining agreement, Playa Vista, may continue to produce revenues pending the continuation of the development. As a result, no revenues should be anticipated in this fund for the foreseeable future. Additionally, the FY 1998-99 payment by Playa Vista was an initial credit. No additional payments may be necessary for this project.

To index

Municipal Housing Finance Fund

Monies derived from the sale of revenue bonds for multi-family residential housing developments, Section 5.120.5 of the Los Angeles Municipal Code, are deposited into the Municipal Housing Finance Fund. Receipts are used for the purpose of acquiring, developing, constructing and rehabilitating single-family and multi-family residential housing developments. Also, for the purpose of making loans for the financing or refinancing of the acquisition, development, construction and rehabilitation of single family and multi-family residential housing development. This fund is administered by the Los Angeles Housing Department

A variety of fees are charged to housing projects funded with bond financing. These fees vary, depending upon conditions placed in the bonds. Fees are paid in installments, or as a lump sum. Fees paid on an installment basis can also be paid off entirely in a lump sum at the choice of the developer. When these fees are paid, the Los Angeles Housing Department (LAHD) deposits them in the Municipal Housing Finance Fund. In addition, LAHD receives reimbursements and payments for a variety of other housing-related activities. For example, the State Tax Allocation Committee pays LAHD $500 for every application the Department reviews under the tax credit allocation process.

Table 65 shows the FY 1998-1999 receipts for the Municipal Housing Finance Fund. In FY 1998-99, the City received $961,941 in fund receipts. This was less than 1% of the special purpose funds and less than 1% of the total operating budget.

Methodology

LAHD determined the address of each bond project that paid fees into the Municipal Housing Finance Fund, then assigned the study areas to each project based on that address. Data were then summarized by study area.

Analysis

Table 66 shows the geographic source of Municipal Housing Finance Fund receipts for FY 1998-99. These results, however, are indicative only of receipts in FY 1998-99. The nature of various bond activities is that extra-ordinary payments could materialize at any point. In FY 2000-2001, an extra-ordinary payment of more than $340,000 was received by LAHD. This payment came from a project located in the Valley. Due to the relatively small size of this fund, such a payment would radically alter any proportional source of receipts in this fund. In FY 2000-2001, the Valley would show a substantially larger proportion of revenues than in FY 1998-99 due to that single payment. The result, however, is that a windfall payment to one region in one year means that subsequent years will result in lower revenues to that area since payments have been completed.

To index

Park and Recreational Sites and Facilities Fund

A Dwelling Unit Construction Tax is imposed by Ordinance No. 143,205 upon every person who constructs any new dwelling unit in the City. The tax applies to new dwelling units created by new construction or modification of existing structures and also to new mobile home park sites. The rate of tax is $200 per dwelling unit. Funds received from this tax are used exclusively for the acquisition and development of park and recreational sites and facilities. In FY 1998-99, the City received $629,321 in fund receipts. This was less than 1% of the special purpose funds and less than 1% of the total operating budget. Table 67 shows receipts to the Park and Recreational Sites and Facilities Fund in FY 1998-99.

To index

Methodology

Actual billing and payment data were unavailable for this revenue source, so a proxy was developed. Addresses for every housing unit constructed in FY 1998-99 were obtained from the Department of Building and Safety. These are the units that would have been charged the Dwelling Unit Construction tax of $200 per unit. This dataset included the number of units constructed at each address. The total number of units was multiplied by $200 to determine the amount of the Dwelling Unit Construction tax at each address. Addresses were then address matched against the Thomas Bros. street file as described in Section 2 of this report. One geographic area was then assigned to each address using GIS and the Dwelling Unit Construction tax was then summed for each geographic area.

Analysis

Table 68 shows the geographic source of revenues for the Park and Recreation Sites and Facilities Fund in FY 1998-99. As with the Residential Development Tax in the General Fund, these revenues are highly dependent upon the strength of construction in the housing market and on the types of housing constructed. In FY 1998-99, large multi-family housing projects on the westside and in Wilmington generated proportionately more revenues from these areas than from other areas of the City.

To index

Pershing Square Project

This fund contains revenues generated by Pershing Square. Pershing Square is located downtown. As a result, all revenues from this fund are assigned to the City of Los Angeles. Actual revenues for FY 1998-1999 totaled $670,291. This was less than 1% of the special purpose funds and less than 1% of the total operating budget. Table 69 shows the Pershing Square Project Special Purpose Fund receipts for FY 1998-99.

To index

Older Americans Act Fund

The Older Americans Act provides funds for the operation of the Area Plan for the Aging administered by the Department of Aging, an Area Agency on Aging. The Elderly Victimization , Prevention and Assistance Project, a crime prevention program for the elderly is funded under Section 308 of the Older Americans Act. This schedule reflects the receipt and appropriation of funds for the Aging Department. Other Older Americans Act funds are expended outside the City Budget directly from the Older Americans Act Grant Funds, as authorized by the Mayor and Council. This revenue source accounts for less than 1% of special purpose fund revenues and less than 1% of the entire operating budget. Table 70 shows the receipts for this fund in FY 1998-99.

Methodology

Only receipts transferred from the General Fund were assigned to a geographic area based on the proportion of General Fund revenues assigned to each geographic area in Table 3. Receipts from the Older Americans Act grant are analyzed elsewhere in this report.

Analysis

Table 71 shows the amount of revenues in the Older Americans Act Fund assigned to each geographic area.

To index

Warner Center Transportation Fund

This fund contains revenues generated by trip fees associated with the Warner Center in the San Fernando Valley. As a result, all revenues from this fund are assigned to the proposed valley city. Actual revenues for FY 1998-1999 totaled $0. This was less than 1% of the special purpose funds and less than 1% of the total operating budget. Table 72 shows receipts for the Warner Center Transportation fund in FY 1998-99.

To index

Staples Arena Special Fund

This fund contains revenues generated by the Staples Arena. The Arena is located downtown. As a result, all revenues from this fund are assigned to the City of Los Angeles. This fund was not established in FY 1998-1999, though revenues are anticipated to be received beginning in FY 1999-2000. This was less than 1% of the special purpose funds and less than 1% of the total operating budget. Table 73 shows receipts to the Staples Arena Special Fund in FY 1998-99.

To index

Revenues Not Yet Analyzed

The following special purpose funds, shown in Table 74, are not currently included in this analysis because data were not immediately available to conduct a thorough analysis. Additional research may produce methodologies for the determination of the geographic origin of these receipts.

To index

No Geographic Determination

Household Hazardous Waste Special Fund

Revenues in this special fund are received through a grant program operated by the Sanitation Districts of Los Angeles County. Cities within the County are eligible to apply for funds to reduce household hazardous waste. The City of Los Angeles funds its used oil collection program with these funds. Since these funds are received based on a proposed program rather than population characteristics or an associated geographic generation of revenues, there is no way to geographically distribute this revenue source based on generation factors. A total of $3,596,284 in revenues were collected for this fund in FY 1998-99. This was less than 1% of the special purpose funds and less than 1% of the total operating budget.

Disaster Assistance Fund

The Disaster Assistance fund contains revenues from various state and federal grant programs that reimburse the City for disaster relief. As with the Grants line item in the General Fund, these revenues cannot be allocated geographically because they are short-term and one- time grant reimbursements for previous year’s expenditures. Extensive research will be required to accurately assign this revenues source. At total of $26,571,509 was reported in this fund in FY 1998-99 including revenues from the cash balance and interest and less transfers to several departments.

Workforce Investment Act

This is a new program that replaces the Job Training Partnership Act. No funds were available for this fund in FY 1998-99 as it began on July 1, 2000.

Special Fire Safety and Paramedic Communications Equipment Tax Fund

On November 8, 1988, the voters approved an ordinance adding Article 1.14 to Chapter 11 of the Los Angeles Municipal Code imposing a Special Fire Safety and Paramedic Communications Equipment Tax. The special tax is imposed for ten years, commencing with fiscal year 1989-90 and ending with fiscal year 1998-99. The Special tax will pay for up to $67 million in bonds to finance the replacement of the Fire Department's current communication and dispatch systems.

This tax was charged to pay for the replacement of the Fire Department’s communication and dispatch systems. The tax was initiated in FY 1988-89 and expired in FY 1998-99. Although $1,204,023 was collected and $17,732,749 was located in the cash balance of the account in FY 1998-99, the last year of the tax, the City Administrative Officer determined that taxpayers had been overcharged on this tax. As a result, taxpayers will be receiving a reimbursement from this fund. Since the tax has expired and revenues remaining in the fund, including FY 1998-99 receipts, will be reimbursed, revenues from this fund will not be allocated regionally.

City Procurement and Materials Management System Reengineering Fund

Revenues for the City Procurement and Materials Management System Reengineering Fund were identified from departmental savings from prior years and the sale of salvage materials. There are no receipts from grants, taxes, or fees and there was no allocation of general fund or other special purpose funds from FY 1998-99 to this fund.

City Employees’ Retirement Fund

An annual tax levy or appropriation from available funds is required by Charter to meet the cost of maintenance of the retirement fund, which provides retirement, disability and death benefits for officers and employees of the City except members of the Fire and Police Pension Systems and members of the Water and Power Employees' Retirement Plan. This reflects the contributions of the Airports and Harbor departments to pay for retirement costs for their employees, and is based on number of employees not department revenues. This fund is simply a mechanism to transfer funds from these departments to the retirement fund. Actual revenues for FY 1998-1999 totaled $9,485,558.

UDAG Miscellaneous Revenue

Urban Development Action Grant (UDAG) is a competitive federal grant program under which applicant’s propose specific projects. Since grant funds are awarded to specific projects based on the competitive process, this is not an annual revenue that should be allocated geographically for the purpose of this study.

No Revenues Generated

The following funds generated no revenues in FY 1998-99:

AB 2800 Senior Services Grant

Anti-Smoking Fund

Engineering Surcharge Revenue Fund

Street Banners Trust Fund

Home Occupation Trust Fund

Bus Bench Advertising Fund

BID Trust Fund

Building and Safety Electrical and Mechanical Testing Laboratories Fund

Reserve for Extraordinary Liability Claims

Industrial/Commercial Revolving Fund (UDAG)

MICLA F Acquisition Fund

Revenues Evaluated in Other Budgets

Special funds have been created to receive transfers of receipts from several grant programs to pay for departmental administrative costs that are contained in the City operating budget. The grants are listed in Table 75, along with the revenues associated with the grant. These budgets are evaluated in the next section of this report, and are, therefore, not evaluated here.

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