City of Los Angeles

Community Financial Report

Summary of the Fiscal Year 2013 Comprehensive Annual Financial Report

@RonGalperin

www.controller.lacity.org

Controllers Message

Fellow Angelenos: The Los Angeles City Controller serves as City's chief auditor, accountant and watchdog over the Citys finances and operations. Each year the Controller releases a Comprehensive Annual Financial Report (CAFR) detailing revenues, expenditures, assets and liabilities of the City. This year, we are introducing this concurrent Community Financial Report (CFR) providing a summary, along with easy-to-read charts and graphs, for the community. Transparency and accessibility of information about our City is a major initiative of my office. This is why we established ControlPanelLA (ControllerData.LACity.org) a new site that opens the books on the Citys financial and payroll data. Schedules from the Statistical Section of the full CAFR are now available on ControlPanelLA, along with options for anyone to view, save and download the data. Return on Investment is key to realizing a more efficient and effective City for Angelenos. To that end, getting a handle on the Citys finances and achieving measurable outcomes is essential. This report offers some selected operating indicators for various City departments; the need for more and better measuring tools, however, is evident. Along with the Mayor, Council and others, our office will be focusing this coming year on how to better measure performance and working to put it into action. Knowledge is power. This report -- along with our other information, open data and auditing initiatives -- are intended to offer both more knowledge and empowerment to our Citys residents and businesses. I look forward to continuing in my efforts to effect greater transparency in our City. We in the Controllers Office are here to serve you. And, together, we all have an important role in serving as watchdogs of our Citys finances, and its future. Thank you,

The Community Financial Report is a financial reporting project of the Office of Los Angeles City Controller Ron Galperin with the goal of educating and empowering Angelenos on the Finances of the City.

Ron Galperin Controller.Galperin@LACity.org February 27, 2014

Controllers Perspective

Looking Forward
The City has a number of critical challenges and key opportunities including:

Healthy Budgeting
Following Ten Guiding Financial Principles will allow the City to improve its financial condition and benefit the City as a whole. 1
Implement a budget based on performance and measurable results.

Challenges
Structural budget shortfall Pension and legal liabilities Infrastructure asset management Economic and education gaps Traffic Attracting and retaining businesses

2 3 4 5 6

Focus on Return on Investment (ROI). Reform City procurement. Reduce liabilities with a comprehensive risk mitigation strategy.

Invest in technology.

Opportunities
Creative and diverse economy City assets and reserves Tourism and trade Safer streets Downtown revival Location, Location, Location!

Put the Citys vast assets and resources to work.

7 8 9 10

Improve accounting and accountability in Special Funds. Explore savings in healthcare and pension costs. Maximize current City revenues and collections.

Continue to build the Citys Reserves.

Controllers Office

Auditing Division
FARID SAFFAR
Director of Auditing

Accounting Operations
OPEN
Principal Deputy Controller
Budgetary Control of City Funds

Financial Reporting
TODD BOUEY
Director of Financial Reporting
Comprehensive Annual Financial Report

Key Report Contributors

Ron Galperin
City Controller
CLAIRE BARTELS
Chief Deputy Controller

Financial and Compliance Audits

Juan Lopez Sally Rocio

General Accounting Performance Audits Payment Approval Vendor Services Reviews Payroll Fraud, Waste & Abuse Hotline Single Audit of Federal Grants Elizabeth Lee Josefina Quiocho Julieta Barba Louella Ubaldo Check Reconciliation Marie de los Reyes Check Security

SUZY JACK
Deputy Controller

Cost Allocation Plan

DANIEL TARICA
Deputy Controller

Special Analysis and Reviews

Enterprise Financial Management System

Marlene Salandanan

I. City Profile
City Facts & Indicators City Organization City Activities 1 2 3

Table of Contents

II. Summary Financial Statements

Net Position Government-Wide Assets Government-Wide Liabilities Statement of Activities Government-Wide Revenues Government-Wide Expenditures 4 5 6 7 8 9

III. Governmental Activities

Protection of Persons & Property Public Works Health and Sanitation Transportation Community Development Cultural & Recreational Services General Government 10 11 12 13 14 15 16

IV. Business-Type Activities

Airports Harbor Water and Power Sewer Los Angeles Convention Center 17 18 19 20 21

V. Glossary VI. Credits & Considerations

22 24

City Profile I

City Facts & Indicators

Key City Facts

Founded as City Incorporated Current Charter Adopted Fiscal Year Square Miles 1781 1850 July 1, 2000 July 1 June 30 470

Key City Indicators*

Estimated Population, 2013 Public School Enrollment, 2013 Personal Income per Capita, 2012 Unemployment Rate, 2013 Net Property Valuation, 2013 Total Direct Property Tax Rates, 2013 (per $1,000 assessed value) Outstanding Debt per Capita, 2013 Reserve Fund as % of General Fund, Beginning Balance 2013 GO Bond Rating, December 2013 (Moodys, S&P, Fitch) 3.9 million 625,935 $44,474 9.7% $416.5 billion $1.038 $5,684 6.7% Aa2, AA-, AA-

3-Year Trend

*For detail, see Comprehensive Annual Financial Report, FY 2013

City Profile I

City Organization

Organization of the City of Los Angeles

City Profile I

City Activities

Two Types of Basic City Activities:

A. Governmental Activities
Functions principally supported by taxes and intergovernmental revenues

B. Business-Type Activities

Functions intended to recover all (or in large part) costs through user fees and charges

Transportation

Public Works Protection of Persons and Property General Government Community Development

Health and Sanitation

Airports

Water and Power Cultural and Recreational Services Harbor

Convention Center

Sewer

Summary Financial Statements II

Net Position

Government-Wide Summary Statement of Net Position FY 2013

(amounts expressed in thousands)
Governmental Activities Assets Current and other assets Capital assets Total assets $5,568,502 7,182,742 12,751,244 0 $9,971,185 28,322,640 38,293,825 97,668 $15,539,687 35,505,382 51,045,069 97,668

The Statement of Net Position is a summary of assets (what the City owns), and liabilities (what the City owes), including deferred outflows/inflows of resources and equity.

Business-type Activities

Total

The City raises and budgets resources needed to pay a liability during the year in which the liability is due rather than during the year in which the liability is incurred. The deficit balance for the governmental activities unrestricted net position of $2.4 billion reflects the extent to which the City has deferred to future periods the financing of certain liabilities.

Deferred outflows of resources Liabilities Current and other liabilities. Long-term liabilities. Total liabilities. Net position Investment in capital assets net of related debt.. Restricted. Unrestricted Total net position.

646,717 7,644,127 8,290,844

1,476,526 19,497,487 20,974,013

2,123,243 27,141,614 29,264,857

4,452,921 2,436,809 (2,429,330) $4,460,400

10,135,052 3,662,540 3,619,888 $17,417,480

14,587,973 6,099,349 1,190,558 $21,877,880

Total Net Position by Category FY 2013

Unrestricted, 5% Restricted for Capital Assets, 2% Restricted for Debt Service, 6% Invested in Capital Assets, Net of Related Debt, 67% Restricted Restricted for Special Purposes, 20%

Breakdown of Net Position 67% capital assets net of related debt 28% restricted resources 5% unrestricted resources
4

Summary Financial Statements II

Government-Wide Assets

Summary of Assets
Assets Represent what the City owns Cash and Cash Equivalents Receivables Inventories Restricted Assets Capital Assets
$60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0

Government-Wide Assets
($ millions)
Current and Other Assets Capital Assets

2013

2012

Deposits and Investments End of FY 2013

($ millions)
Cash on Hand

Key Assets
Capital Assets End of FY 2013
($ millions)
$25,000 $20,000 $15,000 $10,000 $5,000 $0 Governmental Activities Business-Type Activities

Deposits and in transit Pooled Investments 1-30 Days $8,479 Pooled Investments Days Pooled Investments Days Pooled Investments to 5 Years Pooled Investments Years 31-60 61-365 366 Days Over 5

$145

As of June 30, 2013, approximately $8.6 billion was held in the City Treasury, of which approximately $8.5 billion was in pooled investments.

Purchased or constructed capital assets are valued at historical cost. Major improvements to capital assets are capitalized as constructed.

Summary Financial Statements II

Government-Wide Liabilities

Summary of Liabilities
Liabilities Represent what the City owes Accounts Payable Bonds and Notes Compensated Absences Claims and Judgments
$35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0

Government-Wide Liabilities
($ millions)
Current and Other Liabilities Long-Term Liabilities

2013

2012

Key Liabilities
Bonds and Notes End of FY 2013
($ millions)
Governmental Activities Business-Type Activities

Other Long Term Liabilities End of FY 2013

($ millions)
Governmental Activities Business-Type Activities

$20,000 $15,000 $10,000 $5,000 $0

$3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0

The City Debt Policy stipulates that non-voter approved debt service shall not exceed 6% of the Citys General Fund receipts. For the fiscal year ended June 30, 2013, the non-voter approved debt service ratio was 4.51%.

As of June 30, 2013 , the City estimates the amount of Governmental Activities tort and non-tort liabilities and workers compensation liability at approximately $771.5 million and $2.2 billion, respectively.

Summary Financial Statements II

Statement of Activities

The Statement of Activities is a summary showing how the Citys net position changed during a fiscal year. Revenues and expenses in this statement are reflected in the year earned or liability incurred even though the actual receipts and payments may not occur until future fiscal years.

Governmental Activities total expenses, for the fiscal year ended June 30, 2013, exceeded revenues by $628.6 million. This deficit was largely driven by higher estimated liabilities associated with workers compensation, tort and non-tort liabilities.

Summary Statement of Activities

(amounts expressed in thousands)
Governmental Activities FY 2013 Revenues Expenses Excess (Deficit) of revenues over expenses. Transfers Special Items.............. Increase (Decrease) in net position. Net position beginning of year Net position end of year $6,515,239 7,143,880 (628,641) 246,534 112,074 (270,033) 4,730,433 $4,460,400 FY 2012 $6,411,123 6,316,712 94,411 250,077 -344,488 4,376,039 $4,720,527 Business-type Activities FY 2013 $6,603,809 5,733,509 870,300 (246,534) 13,387 637,153 16,780,327 $17,417,480 FY 2012 $6,328,480 5,482,876 845,604 (250,077) -595,527 16,184,800 $16,780,327 FY 2013 $13,119,048 12,877,389 241,659 -125,461 367,120 21,510,760 $21,877,880 Total FY 2012 $12,739,603 11,799,588 940,015 --940,015 20,560,839 $21,500,854

Changes in Net Position (Net Income)

($ thousands)
$1,800,000 Governmental Activities Business-Type Activities

$(200,000) 2009 2010 2011 2012 2013

Net positions may serve over time as an indicator of a governments financial position. Business-Type Activities have steadily increased in Net Position over the past five years; however, Governmental Activities have experienced two years of decline during the same period.

Summary Financial Statements II

Government-Wide Revenues FY 2013

Governmental Activities Business-Type Activities % Total Revenue 70% 60% 50% Thousands 40% 30% 20% 10% 0%

Government-Wide Revenues

Governmental Activities Property Taxes, Charges for Services, and Operating Grants and Contributions comprise 67% of total revenue Total revenue increased by $104 million over FY 2012 Business-Type Activities
Charges for Services comprise

98% of total revenue Airport revenues totaled $1.1 billion, a 1% increase Harbor revenues totaled $417 million, a 4% decrease Water & Power revenues totaled $4.3 billion, a 7% increase Sewer revenues totaled $589 million, an 11% increase Total revenue increased by $275 million over FY 2012

Summary Financial Statements II

Government-Wide Expenditures FY 2013

Governmental Activities Business-Type Activities % Total Expenditure 25%

Governmental Activities Governmental Activities comprise 55% of total expenditure Protection of Persons and Properties comprise 39% of total Governmental Activities expenditure Overall expenditures totaled $7.14 billion, a 13% increase Business-Type Activities
Business-Type Activities comprise 45% of total expenditure Airport expenditures totaled $923 million, a 3% increase Harbor expenditures totaled $332 million, a 1% decrease Water & Power expenditures totaled $3.87 billion, a 5% increase Sewer expenditures totaled $572 million, a 5% increase Overall expenditures totaled $5.73 billion, a 5% increase

Government-Wide Expenditures

20%

Thousands

15%

10%

5%

0%

General Governmental Activities III

Protection of Persons & Property

Five Year History of Revenues, Expenses and Positions

(Accrual Basis)
Expenses Revenues Position Authorities

Fact at a Glance
Total Part I Crime* by Fiscal Year
130,000 120,000 110,000 100,000
position authorities

$3,000 $2,500 $2,000

$ millions

19,000 18,500 18,000 17,500 17,000 16,500

2009 2010 2011 2012 2013

90,000 80,000 2008 2009 2010 2011 2012 2013

*Part I crimes are reported violent and property crimes indexed for comparative purposes.

$1,500 $1,000 $500 $0

Selected Indicators
(FY 2013 CAFR pages 366-377)

Infrastructure Information
(FY 2013 CAFR pages 378-381)

2009 Dog licenses issues Building permits issued Fire responses (including automatic alarms) Emergency medical responses by ambulances Arrests made 121,138 110,992 138,200 382,000 168,000

2010 116,500 115,213 114,121 377,267 151,174

2011 121,817 115,694 118,986 377,026 160,480

2012 123,080 121,140 122,492 384,557 162,698

2013 126,234 126,426 121,381 407,240 150,552

Asset Animal Shelters Fire Stations Police Stations

Number of 6 106 29

10

General Governmental Activities III

Public Works

Five Year History of Revenues, Expenses and Positions

(Accrual Basis)
Expenses Revenues Position Authorities

% of City Bridges by Condition Rating as of July, 2013

F* 0.2% D 6.0%
position authorities

Fact at a Glance

A 42.0%

$500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0
2009 2010 2011 2012 2013

3,500 3,000 2,500 2,000 1,500 1,000

$ millions

C 22.8%

B 29.0%

Rating of F relates to Sixth Street Viaduct. Its replacement is in the design phase. Sufficiency Ratings are in accordance with Federal Highway Administration standards.

(FY 2013 CAFR pages 366-377)

Selected Indicators
2009 2010

Infrastructure Information
(FY 2013 CAFR pages 378-381)

2011 35,700 125,000 13,351 174

2012 30,100 95,505 22,226 236

2013 30,094 77,704 50,000 245

Asset Bridges Street Lights Streets (miles)

Number of 514 207,384 6,500

Graffiti eradicated (square foot) Debris removed (cubic yards) Trees trimmed in Citys urban forest Streets resurfaced (miles)

28,300 183,379 75,504 200

32,000 157,886 32,211 149

11

General Governmental Activities III

Health & Sanitation

Five Year History of Revenues, Expenses and Positions

(Accrual Basis)
Expenses

Fact at a Glance
100%

Recycling Rate of 5 Largest Cities*

Los Angeles Chicago New York Houston
Philadelphia

Revenues

Position Authorities

80% 60% 40%

position authorities

$600 $500 $400

$ millions

2,800 2,700 2,600 2,500 2,400 2,300 2,200 2,100

2009 2010 2011 2012 2013

20% 0%

$300 $200 $100 $0

*Source: http://san.lacity.org/solid_resources/recycling/index.htm

(FY 2013 CAFR pages 366-377)

Selected Indicators
2009 2010 33,330

Infrastructure Information
(FY 2013 CAFR pages 378-381)

2011 32,479 882,005 492,341 148,194

2012 27,640 851,434 470,527 143,338

2013 34,000 954,477 522,737 150,380

Asset Refuse Collection Trucks Refuse Yards

Number of 750 7

Bulky items collected (tons) Refuse collected (tons) Yard trimmings collected (tons) Recyclables collected (tons)

33,146 1,034,429 555,049 170,000

867,113 474,657 141,314

12

General Governmental Activities III

Transportation

Five Year History of Revenues, Expenses and Positions

(Accrual Basis)
Expenses Revenues Position Authorities

Travel Time to Work (in minutes) City of Los Angeles 2011*

10% 7% 13% 7%
position authorities

Fact at a Glance

19%

60 or more minutes 45 to 59 minutes 35 to 44 minutes

$450 $400 $350

$ millions

1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000

2009 2010 2011 2012 2013

5%

30 to 34 minutes 25 to 29 minutes 20 to 24 minutes 15 to 19 minutes 10 to 14 minutes Less than 10 minutes

$300 $250 $200 $150 $100 $50 $0

11%

15% 15%

* Source: Los Angeles County Economic Development Corporation

(FY 2013 CAFR pages 366-377)

Selected Indicators
2010 2,587,925 100,589 30,535,921 10

Infrastructure Information
(FY 2013 CAFR pages 378-381)

2009 Citations written Abandoned vehicles abated Transit vehicle passenger trips Increase in bicycle lane miles 2,784,351 116,967 31,860,898 7

2011 2,461,529 102,911 27,466,279 17

2012 2,522,302 74,270 23,824,821 51

2013 2,654,910 61,062 26,467,594 101

Asset Bike Paths Commuter Buses Traffic Signals

Number of 14 371 4,657

13

General Governmental Activities III

Community Development

Five Year History of Revenues, Expenses and Positions

(Accrual Basis)
Expenses Revenues Position Authorities

Fact at a Glance
Households by Income City of Los Angeles 2012*
13% 5%
position authorities

$500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0
2009 2010 2011 2012 2013

11%

11% 14%

Less than $15,000 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999

1,200 1,180 1,160 1,140 1,120 1,100 1,080 1,060 1,040 1,020

5% 13% 17% 11%

$ millions

$100,000 to $149,000 $150,000 to $199,999 $200,000 or more

* Source: Los Angeles County Economic Development Corporation

(FY 2013 CAFR pages 366-377)

Selected Indicators
2010 1,655,446 15,121 183,741 5,632

2009 Senior meals served Affordable units monitored Multi-family units inspected Tenant complaints processed 1,632,027 18,000 183,741 8,900

2011 1,625,627 20,684 180,000 6,408

2012 1,590,525 20,226 189,771 5,426

2013 1,535,913 21,578 179,728 5,780

14

General Governmental Activities III

Cultural & Recreational Services

Five Year History of Revenues, Expenses and Positions

(Accrual Basis)
Expenses Revenues Position Authorities

Cultural and Educational Attendance by Fiscal Year

Zoo Educational Exhibits El Pueblo Programs City Theaters Observatory Library Cultural Programs

Fact at a Glance

$600 $500 $400

$ millions

3,500 3,000
position authorities

4,000,000 3,000,000 2,000,000 1,000,000 0 2009 2010 2011 2012 2013

Source: FY 2013 CAFR pages 366-377

2,500 2,000 1,500 1,000

2009 2010 2011 2012 2013

$300 $200 $100 $0

(FY 2013 CAFR pages 366-377)

Selected Indicators
2010 16,524,292 46 53,422 15,800

Infrastructure Information
(FY 2013 CAFR pages 378-381)

2009 Library items circulated Art exhibitions presented Youth in sports programs Senior club members 15,925,000 52 64,328 14,125

2011 15,144,804 27 55,752 10,770

2012 15,337,032 52 61,947 12,393

2013 14,983,679 60 61,876 12,252

Asset Acres of Beach Land Acres of City Park Land (Including Beaches) Libraries

Number of 232 16,001 73

15

General Governmental Activities III

General Government

General Government Activities encompass both departmental and non-departmental expenses spanning elected offices, administrative and support services, and broad citywide expenditure categories.

Neighborhood

Personnel Capital Finance

Administration

Empowerment

Human Resource Liability Claims Unappropriated

Balance Benefits

Mayor Council Controller City Attorney City Administrative Officer

City Clerk Employee Relations Board Ethics Commission Finance General Services Information Technology

General City Purposes Water & Electricity

Five Year History of Revenues, Expenses and Positions

(Accrual Basis)
Expenses

$2,500 $2,000
$ millions

Revenues

Position Authorities

6,500 6,000 5,500 5,000 4,500 4,000

position authorities

$1,500 $1,000 $500 $0 2009 2010 2011 2012 2013

16

Business Type Activities IV

Airports

Five Year History of Revenues, Expenses and Positions

(Accrual Basis)
Expenses Revenues Position Authorities

Fact at a Glance
Top 6 Busiest Airports by Passenger Traffic CY 2012 (in millions)
120 100 80 60 40 20 0
Atlanta (ATL) Beijing (PEK)

$1,200 $1,000 $800

$ millions

3,800 3,750 3,650 3,600 3,550 3,500 3,450 3,400

2009 2010 2011 2012 2013
position authorities

Total Passengers

3,700

$600 $400 $200 $0

London (LHR)

Tokyo (HND)

Chicago Los Angeles (ORD) (LAX)

Source: http://en.wikipedia.org/wiki/World's_busiest_airports_by_passenger_traffic#2012_statistics

(FY 2013 CAFR pages 366-377)

Selected Indicators
2009 2010 1,025 63 2,242

Infrastructure Information
(FY 2013 CAFR pages 378-381)

2011 989 65 2,296

2012 976 67 2,366

2013 939 69 2,400

Asset Airports

Number of 3

Aircraft movements (thousands) Passengers (millions) Air cargo (thousand tons)

1,049 62 2,018

17

Business Type Activities IV

Harbor

Five Year History of Revenues, Expenses and Positions

(Accrual Basis)
Expenses Revenues Position Authorities

% of West Coast Container Market Share for Fiscal Year 2013 Los Angeles
39% All Others 2% Tacoma 9% Seattle 7% Long Beach 32%

Fact at a Glance

$500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0
2009 2010 2011 2012 2013

975 970 960 955 950 945 940 935

position authorities

965

$ millions

Source: http://www.portoflosangeles.org/Publications/Financial_Statement_2013.pdf

Oakland 11%

(FY 2013 CAFR pages 366-377)

Selected Indicators
2009 94 66 7 2,322 990,965 2010 88 67 7

Infrastructure Information
(FY 2013 CAFR pages 378-381)

Indicator Inbound tonnage (million tons) Outbound tonnage (million tons) Containerized cargo volume (millions of Twenty-foot Equivalent Units) Vessel arrivals Cruise passengers

2011 94 68 8 2,236 667,434

2012 98 75 8 2,100 515,827

2013 93 72 8 2,089 355,875

Asset Waterfront (miles) Major Container Terminals Cargo Terminals

Number of 43 8 24

2,124 802,899

18

Business Type Activities IV

Water and Power

Five Year History of Revenues, Expenses and Positions

(Accrual Basis)
Expenses Revenues Position Authorities

$0.15 $0.10
position authorities

Residential

Direct Rate per Kilowatt Hour by Fiscal Year

Fact at a Glance

Commercial / Industrial

$5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0
2009 2010 2011 2012 2013

9,300 9,200 9,100 9,000 8,900 8,800 8,700 8,600 8,500

$0.05 $0.00
2008 2009 2010 2011 2012 2013
Source: FY 2013 CAFR page 347

$ millions

(FY 2013 CAFR pages 366-377)

Selected Indicators
2009 189 666 25 1,452 2010 166 659 26

Infrastructure Information
(FY 2013 CAFR pages 378-381)

Indicator Gallons water sold (billions) Average number of water customers (thousands) Kilowatt hours sold (billions) Average number of energy customers (thousands)

2011 169 667 25 1,461

2012 170 674 25 1,471

2013 178 676 26 1,479

Asset Power Transmission Lines (miles) Water Distribution Pipe (miles)

Number of 3,632 7,246

1,447

19

Business Type Activities IV

Sewer

Five Year History of Revenues and Expenses*

(Accrual Basis)
Revenues Expenses

Basic Sewer Service Charge Rate $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 2013 2014 2015 2016 2017 2018
Source: http://lacitysan.org/fmd/ssc1.htm

Fact at a Glance

Rate/Hundred Cubic Feet

$600 $580 $560

$ millions

$540 $520 $500 $480

*Bureau of Sanitation positions shown under Health & Sanitation category

2009 2010 2011 2012 2013

(FY 2013 CAFR pages 366-377)

Selected Indicators
2009 451 78 2010 393 81

Infrastructure Information
(FY 2013 CAFR pages 378-381)

Indicator Wastewater treatment (Million Gallons per Day) Wastewater reclaimed (Million Gallons per Day)

2011 384 68

2012 398 62

2013 398 72

Asset Sewers (miles) Stormdrain Pipe Mainline (miles)

Number of 6,700 1,200

20

Business Type Activities IV

Los Angeles Convention Center

Five Year History of Revenues, Expenses and Positions

(Accrual Basis)
Expenses Revenues Position Authorities

Exhibit Halls

$45 $40 $35 $30

$ millions

160 140 100 80 60 40 20 0

2009 2010 2011 2012 2013
position authorities

120

$25 $20 $15 $10 $5 $0

(FY 2013 CAFR pages 366-377)

Operational Figures
2009 161 274 2010 161 297

Infrastructure Information
2011 149 304 2012 137 281 2013 140 284 Asset Exhibit Space (sq. ft.) Number of 720,000

Indicator Scheduled exhibit hall events Repeat events hosted

21

Glossary V
Accrual Basis is accounting for transactions when they occur. Revenues are recorded when earned or when the City has a right to receive the revenues. Expenses are recorded when incurred. Adopted Budget is the Mayor and Council approved plan of financial activity for a specified fiscal year indicating all planned revenues and appropriations for the year. Annual Community Financial Report (ACFR) is a supplemental overview of the Citys Comprehensive Annual Financial Report published by the Controllers Office. Appropriation Authority is the legal authority to incur obligations and expend up to a budgeted amount for a stated purpose. Total appropriation authority includes the adopted budget and actions taken by Mayor and Council during the year to amend the adopted budget. Assets are what the City owns. Budget Stabilization Fund was created to prevent overspending during prosperous years and provide resources to help maintain service levels during years of slow revenue growth or declining revenue. Charter Amendment P established the Budget Stabilization Fund in the City Treasury and authorized the requirements for transfers or expenditures from the fund as established by ordinance. Business-type Activities are functions intended to recover all (or in large part) costs through user fees and charges. Capital Improvement Expenditure Program (CIEP) constitutes expenditures for the acquisition, construction, expansion or rehabilitation of the Citys physical plant (such as streets, sewers, and storm drains) and facilities (such as fire stations, police stations, and libraries). Cash Basis (or Budget Basis) accounting records revenues and expenditures when cash is received or paid. Commercial Paper notes lease financing program supplements the MICLA equipment and real property lease program, and allows MICLA to access financial markets quickly; to obtain flexible, short-term maturities; to borrow only those amounts needed as invoices are received; and to borrow at more favorable rates. Comprehensive Annual Financial Report (CAFR) is published annually by the City Controller on the Citys financial condition and results of operation at the conclusion of the fiscal year. The report is prepared to conform to Generally Accepted Accounting Principles (GAAP) for governmental units and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Debt Policy is an adopted formal debt policy of the City establishing guidelines for the structure and management of the Citys debt obligations. These guidelines include both a target and ceiling for certain debt ratios to be used for planning purposes. Department is a major administrative division of the City that indicates overall management responsibility for an operation or group of related operations within a functional area. Encumbrance is an obligation or commitment to pay for a good or service. An example of an encumbrance is ordering a car and setting aside funds to pay for the car. Expenditure is an actual payment. An example of an expenditure is writing a check to pay for the car. Fiscal Year (FY) is a twelve-month period of time to which the annual budget applies and at the end of which the City determines its financial position and the results of its operation. The Citys fiscal year begins on July 1 of the calendar year and ends on June 30 of the following year. Fund is a fiscal entity with assets, liabilities, revenues and expenditures that are segregated for carrying out a specific purpose or activity. Generally Accepted Accounting Principles (GAAP) is a set of accounting principles, standards, and procedures used to compile financial statements.

Glossary

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Glossary V
General Fund is for deposit of general receipts which are not restricted, such as property, sales and business taxes and various fees. General Obligation Bonds are voter authorized (by two-thirds vote) and payable from proceeds of taxes on taxable secured and unsecured property within the City and collected by the County General Obligation bonds are paying for such projects as library, police, and fire facilities. Governmental Activities are functions principally supported by taxes and intergovernmental revenues. Government-Wide is a broad overview of the Citys finances comprised of Governmental and Business-Type activities across all sources of funds. Governmental Accounting Standards Board (GASB) is an independent organization that establishes standards of accounting for U.S. state and local government. Government Finance Officers Association (GFOA) is an organization aimed at enhancing and promoting the professional management of governments for the public benefit by identifying and developing financial policies and best practices and promoting their use through education, training, and leadership. Judgment Obligation Bonds are issued under State law to finance an obligation imposed by law. Judgment Obligation Bonds are secured by the General Fund. Liabilities are what the City owes. Net Position is the difference between the Citys assets and liabilities, including deferred outflows/inflows of resources. Position Authority is an approved position that may be filled with a fulltime employee. Position authority is not an indicator of employment level. Reserve Fund is the fund in which general unrestricted cash is set aside outside the budget for unforeseen expenditures and emergencies. Restricted refers to funds that are not available for general use because they are set aside for a specific purpose. Revenue is cash or credits the City receives during the fiscal year as income to finance general or restricted operations. This includes items such as taxes, fees from services, interest earnings, and grants. Revenue Bonds are bonds payable exclusively from earnings of the enterprise and/or special revenue funds. Special Assessment Bonds are bonds payable from the proceeds of special assessments levied against certain properties that benefited from the proceeds of the bonds. Special Purpose Funds account for proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. Unrestricted refers to funds available for general use.

Glossary

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Credits & Considerations VI

Credits & Considerations

Special thanks to Special Assistant Juan Lopez for his dedication and hard work in putting this report together.

Architectural History of Los Angeles. Courtesy of Jericl Cat. Flickr Link. LA City Hall from DWP. Courtesy of Valli_Mark. Flickr Link. City Hall. Courtesy of Felix Tsao. Flickr Link. Cargo into Sunlight. Courtesy of Bridget Coila. Flickr Link. jan 2012 13191. Courtesy of Paul Bailey. Flickr Link. City of Los Angeles Sanitation Truck. Courtesy of Navymailman. Flickr Link. Los Angeles City Hall. Courtesy of Channone Arif. Flickr Link.

IMAGE CREDITS All Images listed are licensed and used under Creative Commons license
Villaraigosa. Courtesy of Terminals & Gates. Flickr Link. Modified text, rotate 180. Los Angeles City Hall Historical Postcards. Various. Courtesy of MCAD Library. Flickr Link. See Something or Say Something Los Angeles. Courtesy of Eric Fischer. Flickr Link. LAPD (45/465). Courtesy of John Liu. Flickr Link. A day of Los Angeles Metro. Courtesy of Eric Fischer. Flickr Link. Los Angeles. Two images Courtesy of Tony Nugary. Flickr Link.

While this report is summarizing and condensing the 2013 Comprehensive Annual Financial Report (CAFR) of the City of Los Angeles, this is not an audited document and contains some information supplemental to the CAFR. Much of the CAFR is produced from information provided by component units and departments of the City. Further detailed financial statements are available from the websites of various entities presented herein. Interested stakeholders are encouraged to view the full CAFR.

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