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
5 Additionally
Budgeted Funds
Consolidated Plan
Community Development Block Grant
HOME Investment Partnership Act
Housing Opportunities for Persons With AIDS
Emergency Shelter Grant
Program Income
Community Redevelopment Agency
LIST OF TABLES
Summary of Additionally Budgeted Revenues by Source Region,
FY 1998-99 89
Summary of Consolidated Plan Revenues by Region, FY 1998-99 90
CDBG Formula Grant Allocation and Estimated Grant Per Study Area, FY 1998-99
91
Emergency Shelter Grant Estimated Grant Per Study Area, FY 1998-99 92
Program Income, FY 1998-99 92
Revenues, Community Redevelopment Project Areas, FY 1998-99 93
LIST OF MAPS
Geographic Study Areas The report failed to include a map, we have linked the map from the petition.
Several revenue sources available to the City are budgeted outside the operational budget of the City. As a result of the source of funds or the nature of an operating department, certain revenues are not budgeted through the City operating budget. The operating budget is concerned with General Funds and Special Purpose Funds. The Consolidated Plan is a separate budget for a variety of federal entitlement grants received from the Department of Housing and Urban Development. Likewise, the JTPA/WIA and Older Americans Act revenues are grants that are budgeted independently from the operating budget. Several departments, such as the Community Redevelopment Agency and Housing Authority of the City of Los Angeles, are considered State agencies. Due to State regulations and enabling legislation, budgets for the departments are approved independently from the City operating budget. The City proprietary departments, Water and Power, Airports, and Harbor, are likewise budgeted independently. The following section includes several significant revenues that fall into this category, though not all. Revenues were included here as a function of the availability of data. Other revenues budgeted through other means may be added to this section as data becomes available. Additional revenues under review are the Older Americans Act grant, several police grants, the JTPA/WIA grant, and the Community Service Block Grant. Table 76 shows those additionally budgeted funds included in this analysis.
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Table 76 Summary of Additionally Budgeted Revenues by Source Region, FY 1998-99 |
||||
|
Revenue |
San Fernando Valley |
Los Angeles |
Harbor |
Total |
|
Consolidated Plan [1] |
$28,359,244 |
$87,485,978 |
$3,745,958 |
$119,591,180 |
|
Community Redevelopment Agency |
$7,624,000 |
$134,374,000 |
$1,404,000 |
$143,402,000 |
|
Total Geographically Located |
$35,983,244 |
$221,859,978 |
$5,149,958 |
$262,993,180 |
|
14% |
84% |
2% |
||
|
Not Allocated Geographically |
$33,357,000 |
|||
|
GRAND TOTAL |
$296,350,180 |
|||
1 The Consolidated Plan is budgeted on a program year of April 1 through March 31. This data represents program year April 1, 1998 through March 31, 1999. The Consolidated Plan budgets grant receipts from the federal government, as described in this report. This includes the CDBG, HOME, ESG, and HOPWA entitlement grants and program income only. Competitive federal grants from HUD are not included in the Consolidated Plan.
The Consolidated Plan is a planning document required by the federal Department of Housing and Urban Development (HUD) that sets out a strategic plan and detailed budget for the use of several entitlement grant revenues. Grants included in the Consolidated Plan are the Community Development Block Grant (CDBG), HOME Investment Partnership Act (HOME), Housing Opportunities for Persons with AIDS (HOPWA), and Emergency Shelter Grant (ESG). In addition, program revenues associated with these grants are also budgeted through the Consolidated Plan.
The Consolidated Plan consists of a 5-year strategy and an annual plan. The City of Los Angeles Consolidated Plan budgets grant revenues on a program year that begins April 1 and ends on March 31 of the following year. Each eligible jurisdiction receives a grant based on several factors. The CDBG and ESG programs use the same formula. Separate formulas exist for HOME and HOPWA. Table 77 estimates the amount of each grant the three study areas would receive. The grant formulas for each program were used to estimate the amount each of the study areas would receive.
Community Development Block Grant
The Community Development Block Grant (CDBG) is an entitlement grant program. CDBG funds can be used for a wide range of activities, including social services, housing, economic development, infrastructure repairs, and parks. HUD requires, though, that funds be used to benefit low income households and to eliminate blight.
HUD distributes CDBG based on a formula that weights the total population, the total population of persons in poverty, and the number of persons living in overcrowded housing. Poverty is weighted twice. Table 78 shows the application of this formula to the study areas and the estimated distribution of CDBG grant funds to the study areas.
HOME Investment Partnership Act
The HOME Investment Partnership Act program provides funds to support an array of housing-related activities. The allocation formula is a complex, six-step process that involves an array of local and national demographic and economic data. Due to the complexity of this formula, no estimation of the HOME grants each study area would receive has been provided. Additional information from HUD is required before an attempt is made estimate the source of revenues on this grant. To index
Housing Opportunities for Persons With AIDS
The City of Los Angeles is the local coordinating agency for the U.S. Department of Housing and Urban Development’s (HUD) Housing Opportunities for Persons With AIDS (HOPWA) funding. Neither the County of Los Angeles nor any other city in the county receives an allocation of HOPWA funding from HUD. The County of Los Angeles and all cities in the county work through the Los Angeles Countywide HOPWA Advisory Committee (LACHAC), administered by the City of Los Angeles, to receive funding. To index
Emergency Shelter Grant (ESG) funds received by the City of Los Angeles are expended by the Los Angeles Homeless Services Authority (LAHSA), a joint powers authority created by agreement between the City and County of Los Angeles. LAHSA administers a wide range of homeless programs county-wide. Other cities participate in these programs per individual agreements with LAHSA. Several larger cities in the county, including Glendale and Pasadena, do not participate in LAHSA’s planning and programming activities, choosing instead to provide their own homeless services. HUD determines the amount of the ESG entitlement using the CDBG grant formula. Table 79 shows the estimated revenues each study area would receive using the CDBG formula.
Many of the eligible activities under the CDBG, HOME, HOPWA, and ESG programs involve loans for economic development and housing construction and rehabilitation. These loans typically offer long-term repayment schedules. Revenues generated as a result of the repayment of these loans are called program income. Program income can be used according to the terms and conditions of the original grant program, so program income from CDBG funds must be used according to CDBG program requirements.
Table 80 shows the amount of program income received from each of the study areas in FY 1998-99. These are only CDBG and HOME program income receipts reported by the Los Angeles Housing Department.
|
Study Area |
CDBG |
HOME |
Total Program Income FY 1998-99 |
|
San Fernando Valley |
$3,471,550 |
$1,680,378 |
$5,151,928 |
|
Los Angeles |
$8,896,431 |
$2,921,860 |
$11,818,291 |
|
Harbor |
$191,615 |
$30,574 |
$222,189 |
|
Total |
$12,559,597 |
$4,632,811 |
$17,192,408 |
Community Redevelopment Agency
There are 34 community redevelopment areas in the City, of which four are in the San Fernando Valley and two are in the San Pedro/Wilmington area. All 34 redevelopment areas fall entirely within one of the three study areas. The Redevelopment Agency revenues are of a different nature than the City's general fund or special fund revenues. The Redevelopment Agency is not a city agency, but is created under state law. Recently adopted legislation (AB 2302) allows for transfer of jurisdiction over a redevelopment project area in the event a portion of a city containing a portion of a redevelopment project area is incorporated as a new city, but only if the two agencies reach agreement regarding allocation of taxes, security for outstanding indebtedness, and other issues.
Methodology
The geographic region for each redevelopment area was identified. Revenues for each project area were then obtained from the Report on Agreed-Upon Procedures Related to Five Years Revenue Projection and Related Information and summed by geographic region.
Analysis
The largest and oldest redevelopment areas with the highest revenues from property tax increment are located in the City. Three of the four project areas in the San Fernando Valley are Northridge Earthquake recovery areas and are very limited in scope. Table 81 shows the actual revenues from the various CRA project areas, and the percent of total revenues this represents per study area.
Issues
Some revenues from the Bunker Hill project area can be used citywide to support other project areas or to assist with the development of housing. If the Valley or Harbor areas secede from the City, these revenues will not be available to these areas.
REFERENCES
City of Los Angeles. 2000. Budget for the Fiscal Year 2000-2001.
City of Los Angeles. 2000. Revenue Outlook: Supplement to the 2000-2001 Proposed Budget.
Community Redevelopment Agency. Report on Agreed-Upon Procedures Related to Five Years Revenue Projection and Related Information
Daily News. October 13, 1996. "Does the Valley Get Its Fair Share?". Beth Barrett.
MRC Study.
Street Lighting Maintenance Fund
Section 6.96 of the Los Angeles Administrative Code provides for annual assessments for the maintenance or improvement of street lighting in or along public streets, alleys or other public places in the City. Section 6.118 of the Administrative Code provides that all funds collected shall be placed in the Street Lighting Maintenance Assessment Fund for payment of the expense of maintaining and operating the street lighting system.
Methodology
Analysis
Forfeited Assets Trust Fund
Section 5.115 of the Los Angeles Administrative Code establishes the Forfeited Assets Trust Fund of the Police Department. This Fund receives monies forfeited in connection with various Federal and State violations and awarded to the City pursuant to Title 21 United States Code Section 881, California Health and Safety Code Section 11489, or any other Federal or State statute relating to forfeited assets. All monies received from the State and Federal Governments under those statutes are deposited in separate accounts within this Fund. A Supplemental Police Account is established within the Fund in the amount of $1,500,000 to be administered by the Chief of Police in accordance with an expenditure plan approved by the Mayor and City Council. Both State and federal laws require that these forfeited assets be used to enhance law enforcement resources and not to supplant resources which would have been committed to this purpose in their absence
Arts Development Fee Trust Fund
Section 5.346 of the Los Angeles Administrative Code establishes the Arts Development Fee Trust Fund. The owners of a non-residential development project over $500,000 in value shall pay a fee not exceeding one percent of the total value of work and construction authorized by the building permit. The fee is used to provide cultural and artistic facilities, services and community amenities for the project. If private facilities, services and community amenities for cultural and artistic purposes are provided in the proposed development project, then a dollar-for-dollar credit may be granted against the Arts Development Fee.
Methodology
Analysis
Traffic Safety Fund
The City's share of fines and forfeitures collected under Section 42200 from any person charged with a misdemeanor under the Vehicle Code of the State of California is used for traffic signs, signals, and other traffic control and safety devices; traffic law enforcement and accident prevention; and for the maintenance, improvement or construction of public streets, bridges and culverts within the City.
Methodology
Analysis
Special Police Communications/911 System Tax Fund
On November 3, 1992 the voters approved the imposition of a special tax to repay bonds, not to exceed $235 million, issued to finance improvements to the police communications system, which includes the 911 system for fire and police emergency calls. The special tax is imposed on each parcel, improvement to property, and use of property. The special tax is to be imposed for a period not greater than 20 fiscal years, commencing with the 1993-94 fiscal year. The proceeds of the special tax are deposited in the Special Police Communications/911 System Tax Fund in accordance with Section 21.16.5 of the Los Angeles Municipal Code.
Methodology
Analysis
Building and Safety Systems Development Fund
Section 5.412 of the Los Angeles Administrative Code establishes the Building and Safety Systems Development Fund. This Fund receives monies from a surcharge of the greater of six percent or $1.00 added to the total of all fees imposed for any permit, plan check, license, or application in accordance with Los Angeles Municipal Code Section 98.0416. This Fund shall be used to finance the design, implementation and maintenance of automated systems to support new programs of the Department of Building and Safety; to process building construction permit and appeal procedures; to purchase computers and related equipment; and provide for incidental expenses such as employee training and facility renovation.
In FY 1998-99, the City received $3,988,008 in fund receipts. This was less than 1% of the special purpose funds and less than 1% of the total operating budget.
|
Table ____ Building and Safety Systems Development Fund, FY 1998-1999 Revenues |
|
|
Revenue Source |
Revenue |
|
Cash Balance |
$6,178,689 |
|
Receipts |
$3,600,413 |
|
Interest |
$387,595 |
|
Total |
|
Methodology
Addresses for every address that pulled a permit in FY1998-99 were obtained from the Department of Building and Safety. The amount of the fee that was assigned to the Trust Fund for each address was included in the data set. 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 fee paid by each address was then summed for each geographic area.
Analysis
Table ____ shows the amount of revenue assigned to each geographic study area. This amount of fees generated by this trust fund are heavily dependent upon economic conditions and the health of the construction industry. Fewer permits or permits that require lower fees will produce lower fees for this fund.
|
Table ____ Estimated Revenues, Building and Safety Systems Development Fund, FY 1998-99 |
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|
Area |
Percent of Total |
Actual FY 1998-99 Revenues |
|
San Fernando |
||
|
Los Angeles |
||
|
Harbor |
||
|
Subtotal |
$3,988,008 |
|
|
Cash Balance |
$6,178,689 |
|
|
Total |
$10,166,697 |
|
