ANEWVISIONforLOSANGELES

NeighborhoodCouncilBudgetAdvocatesarecommittedtoworkwith
theMayorandCityCouncilmembersinordertomakeLosAngeles

AWORLDCLASSCITY
MayorEricGarcettihascalledforthisyearsbudgettobeorganizedaroundfiveoverarching
outcomes:

MakeLosAngelesthebestrunbigcityinAmerica

PromotegoodjobsforAngelenosallacrossLosAngeles

Createamorelivableandsustainablecity

Ensureourcommunitiesarethesafestinthenation

Partnerwithresidentsandcivicgroupstobuildagreatercity

Toadvancetheseoutcomes,BudgetAdvocatesmetwithkeyplayersfromthirtyDepartments
andBureausaswellasCouncilMembersortheirkeystaffofthefifteenCouncilDistrictsto
learntheirconcerns,anddistilledfivekeyactionitemsthatwillhelpadvancetheMayors
objectives,includingrebuildingtheconfidenceofresidentsandbusinessesintheirelected
officialsandensuringtheprosperityandsustainabilityofourcity.
Theseareto:

RedefineourCitysbudgetprocesses,practicesandphilosophyinordertolayouta
cleardirectionformakingforwardlookingdecisions,includingresolvingtheretirement
plansandotherstructuraldeficits,andchangethewaytheCitypreparesbudgetsto
focusonplanningforeconomicdownturns,inadditiontoreadjustingtothepresent
economiccircumstances

Create21stcenturyinformationmanagementsystemsdedicatedtoprovidingintegrated
andefficientsupporttostakeholdersandfacilitationinterdepartmentalcommunication

RebuildandimproveLosAngelesinfrastructuretostandardsthatexceedthebestinthe
worldtotakecareofourcitizensandattractnewbusinesses

StreamlinetheCityshiringprocessestoproactivelyanticipatefutureneeds,including
potentialreplacementofthe25%ofemployeesnoweligibleforretirementaswellas
attractinganddevelopingasustainableworkforce

Implementacitywidecollectionssystemtorealizeuncollectedrevenue,developmore
incomesourcestooffsetstructuraldeficits,andcreatethepermanentpositionof
InspectorGeneral

BudgetProcesses,Practices,andPhilosophy
The2020CommissionReportpointedoutthatLosAngelesistreadingwaterwhiletherestof
theworldmovesforward,andthattheCityneedstoadapttothe21stcentury.
TheCitymustmakebetteruseofthegreatresourceithascreatedintheNeighborhoodCouncil
systemwhichnotonlyempowersthepublicatalocalleveltohavedemocraticinputintoall

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levelsoftheCitygovernmentbutalsoprovidestheCitywithadepthofexperienceand
resourcesunrivaledinmostbigcities.
Inrecentyearsthestructuraldeficit,increasingretirementplanobligations,theimpedimentof
afailinginfrastructureandthelackofresourcesandpersonneltoimplementlongterm
planninghasledtouncertaintyduringthefiscalyearinregardstoongoinglabornegotiations,
servicedeliveryandlongertermplanning.Inadditiontotherealcostsassociatedwith
unsettledfinances,thiscloudofuncertaintyhashamperedproductivity,impairedemployee
morale,andlimitedoperationalvision.
TheMayor,CityCouncil,andallDepartmentsmustembraceacoherentandconsistent
philosophythatwillreversetheseproblemsandbuildLosAngelesintoacityforthe21st
century.
TheBudgetAdvocatesrecommend:

TheCitydeterminewhatisfeasibleunderitscurrentfinancialstructureandwhatmust
bechangedtosetLosAngelesonabettercourseforthefuture

Allbudgets,presentandfuture,containprovisionstomaintaineveryinfrastructure
elementtoensurethatthelivabilityandsafetyofourCityismaximized,andtojustify
futureinvestmentsininfrastructure

TheCityestablisharealisticplanforensuringthedeliveryofretirementbenefitstopast,
current,andfutureemployeesandintegratethisplanintoallbudgets

AllDepartmentscommittoaPerformance/ZeroBasedBudgetingapproachandusing
thencurrentdataandincorporatingmultiyearobligations,budgetonlyforresults,
startingeachyearatzerowitheachDepartmentacceptingaccountabilityfortheirshare
ofannualandlongtermcosts

TheCityimplementarealistic,balanced,fiveyearbudgetand30yearplan,bothtobe
updatedyearlyandapprovedtogetherwiththeannualbudget,withthemultiyear
amortizedcostsintegratedwiththoseofdaytodayoperationssofutureshortfallswill
beidentifiedandaddressedthoughtfullyandtransparentlylongbeforetheycanimpact
daytodayoperations

TheCityreconfirmitscommitmenttotheNeighborhoodCouncilsystemand:1)approve
theDepartmentofNeighborhoodEmpowerment'sproposedexemptpositionsand
immediatelyfillallvacanciessoastoadequatelysupportthecouncils;2)restoreannual
Councilbudgetstopreviouslevelsandallowingapercentageoffundstorolloverfor
continuity;and3)fundtheonlinevotingfornextyearsNeighborhoodCouncilelections,
whichcouldalsobeatestrunforholdingcityelectionsonline

TheCityimmediatelyestablishashorttermindependentcitizenscommitteepursuant
totherecommendationsofthe2020CommissiontoaddresstheCitysoverwhelming
andincreasingpensionandhealthcareobligationsandtoevaluatesolutionswhichwill
containthatexpense,takecareoftheCityspast,present,andfutureworkersandalso
besustainableinourpresentandfutureeconomicenvironment

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InformationTechnologyUpgradesandInterdepartmentalCommunication
TheneedforadramaticallyimprovedInformationTechnology(IT)systemwasanearuniversal
concerninourinvestigationsintotheCitysbudget.Severalthemeswithinthebroadercontext
ofanimprovedITsystemarose,including:1)AlackofcoordinationofITservicesacrossCity
Departments;2)AnagingITworkforce;3)Anunreliableinternalnetwork;and4)Aconsistent
lackoflongterminvestmentsinourITinfrastructure.
TheBudgetAdvocatesrecommend:

Asingleindividual(orteam)beempoweredtocoordinatetheITeffortswithintheCity
toavoidredundanciesanddecreaseinefficienciesacrossDepartments,including
workingcloselywithdepartmentalITstafftointegrateCityneedsseamlesslywiththe
ongoinguseofproprietarysystemsandfullytestingeveryaddedcomponenttoensure
thateachiscompatiblewithallexistingsystemsbeforethenewinfrastructureis
allowedtogoactive

Theintroductionofnewtechnologiesbecomplementedwithacomprehensiveplanto
trainandexpandITemployeestoprovideimprovedandexpandedservices

TheCityhirethenextgenerationofITworkersbasedontheirhavingrelevant
experience,withskillsetscompatibletothenewsystems,andpaycompetitivesalaries

TheCityestablishastrongITinfrastructurebackbonethatisscalable,andmodernize
theCitysdatacenteroperationsthroughpublicandprivatecloudoptions

TheappropriateagentundertakealongtermcostbenefitanalysisforallmajorIT
projectsbeforeenteringintoanyagreementthatmightultimatelycosttheCitymore
moneythanitwouldsave

SignificantinvestmentintheCitysITinfrastructurehasthepotentialtosavemillionsofdollars
inthelongrunprovided,however,theneedsandconcernsofallDepartmentsandtheoutside
agenciesthatwouldbeaffectedbysuchlargescaleprojectsareadequatelyaddressed.
Furthermore,theCityshouldrequireeachDepartmenttoreviewthelongtermcostsandvalue
oftheseprojectsandbudgetaccordingly.
OurITinfrastructurecannotcontinuetobesupplementedwithonlymodestchanges.Tobe
abletohandletheITneedsofaworldclasscity,ourITinfrastructureneedstomakeaquantum
leapinITserviceanddelivery.Thisentailsinvestinginthehighquality21stcentury
technologiesthatwillenabletheCitytoachieveitspotential.

InfrastructureModernization
Facingtheconsequencesofthesignificantinfrastructureproblemsthathavedevelopedover
manydecadesofdeferredmaintenance,theCitymustassesswhatneedstobedoneandlay
outaplan,firsttofixwhatisbrokenandthentoestablishaprogramofnewconstructionwith
ongoingmaintenanceandupgrades,tomakeourCityattractivetoinvestors,hospitabletoits
residents,andsustainableintothenextcentury.

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TheBudgetAdvocatesfocusedontheinfrastructurethatispaidforfromtheGeneralFund.This
includesstreetsandsidewalks,curbsandcorneraccessramps,streetlights,parksandthe
urbanforest,thefleetofagingvehicles,buildingsandfacilities(includingitsinternalworkings
suchasplumbing,electrical,cablefiber,andHVACsystems),andITmanagementinformation
andcommunicationsystems.
TheCitydoesnothaveacentralizeddatabasethattrackstheconditionofitsinfrastructure.
MostDepartmentsdonothaveaninfrastructureplan.
TheCitydoesnothaveanaccurateestimateofthecosttorepairandmaintainits
infrastructure.
TheCityscurrentdeferredmaintenancebudgetisestimatedtobeintherangeof$10billion
andtheCityhasbeenreluctanttoconductacomprehensivesurveyofitsinfrastructure
becauseoftheexpenseofasurvey.Yetthisvitalexpensewouldbejustasmallpercentageof
theoverallcost.Therealcostisnottheexpenseofthesurvey,butintheerosionofthepublics
confidenceintheCityforthelackofcomprehensiveinfrastructuremaintenance.
TheCitycannolongerignoreitsfailinginfrastructure.Therateoffailurewillaccelerateover
time,resultingindisproportionatelyhighercosts.
Withoutrepairs,thedeterioratinginfrastructurewillmakeitharderfortheCitytoattract
businessesandmaintainitsstatusasatouristdestination,anditseconomywillsuffer.
TheCitymustregainthetrustofaskepticalpopulacewhichbelievesthattheirtaxdollarshave
beendivertedtopayforincreasedsalaries,pensions,andbenefitsforCityemployees.Thiswill
requirereformoftheCitysfinances.
TheBudgetAdvocatesrecommend:

TheCityAdministrativeOfficerdeterminethestatusofalloftheCitysinfrastructure,
DepartmentbyDepartment,andtherelateddeferredmaintenancecosts

TheCitydevelopadetailedoperationalandstaffingplantorepairandmaintainallofits
infrastructure,DepartmentbyDepartmenttoensurethatourstreets,sidewalks,and
therestoftheCitysinfrastructurewillbemaintainedingoodconditionforthenext100
years

TheCitydevelopacomprehensivefinancingplanwhich,toearnthetrustofthevoters,
shouldestablishanindependentoversightcommitteeconsistingofqualifiedindividuals
whohavetheappropriatebackground,training,andadequateresourcestomonitorthe
repairandmaintenanceoftheCitysinfrastructure

Intheeventthefinancingplanrequirestheapprovalofthevoters,theCitymustplace
ontheballotameasurethatcomprehensivelyaddressestheCitysfinancialconstraints
byincludingrequirementsthattheCitybalanceitsbudgetandfunditsretirementplans
alongwiththerepairandmaintenanceofitsinfrastructure

TheCityshouldseektopassbondsnowwheninterestratesarelowandthecostsof
improvements,includingmaterialsandlabor,arelessexpensivethantheywillbeinthefuture.
Thiswouldcreatewellpayingjobsformanyofourstakeholders,encouragepeopleand
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businessestoremain,andattractnewinvestmentandbusinessopportunitiesfromoutsidethe
City.
Weneedtoestablishandenforceperformancebenchmarksandaccountabilitytoensurethat
theCitydoesnotneedtogobacktotheresidentstoaddtothesebondsduetoinefficiencies.It
isessentialtheCitydevelopssolidandsustainablewaystoincreaseincomegeneration
consistentwithpopulationgrowthandstakeholderdemands.

PersonnelandHiring
TheDepartmentofPersonnel,likemostotherdepartments,suffersfrombeingunderfunded
andunderstaffedintheaftermathofthe2008recession.Aconcernofmanydepartmentsisthe
needtoretaininstitutionalmemorybyhiringqualifiedstaffnowtobetrainedbefore
experiencedpersonnelretire.ThePersonnelDepartmentfacesanumberofregulationsthat
hindertheemploymentofsuitablecandidates,donotallowtheflexibilitytoadapttoarapidly
changingworld,anddonotallowtheCitytohirepersonnelforwhichfundinghasalreadybeen
approved.
TheCityneedswaystoattractengagedandinnovativestaffforallDepartments,retainingthem
withexcitingchallenges,appropriatetrainingandemployeerecognitionprogramstoincrease
morale.
Duetodisproportionatecutsdatingbacktothe2008economiccrisis,thecurrent
budgetaryrequestfromthePersonnelDepartmentbarelyservestoallowthe
Departmenttomeetcurrentmandatesand,asjobclassificationschange,their
obligationsintheshorttermincrease,leavingthemlesslikelytoeffectivelycatchup,let
aloneincorporatetrainingandanticipatefutureneeds.
TheBudgetAdvocatesrecommend:

TheCityincludeinitsupcomingbudgetupto$5milliontoengageoutsidecontractors
asnecessarytoprocesstheentirebacklogoftestingandhiringofapplicantswithin
twelvemonthsincludingbringingalljobdescriptionsuptodate

AllemergencyappointmentsbeextendedbyuptooneyearoruntileveryDepartments
backlogiscleared

TheCityfundgeneralmetricanalystsplusclericalsupportforthePersonnelDepartment
toproactivelyplanforthenext5yearsofstaffing,including,butnotlimitedto,the
projected25%to40%retirementofcurrentstaff

TheCityauthorizethedevelopmentandlongtermfundingofanautomatedpayroll
systemwithHRmodulestoconsolidateandmodernizeCitypayrollforallDepartments
andtheCouncil

TheCityfundandtheDepartmentofPersonnelimplement:1)Expandedinhouseand
newhiretraining;2)Crosstrainingtoensureflexiblestaffingduringeconomic
fluctuationsaswellasprovideadditionalshorttermsupportforDepartments
experiencingunexpectedstaffingdemands;3)Anapprenticeshipprogramin
conjunctionwithcollegesandvocationalschoolssopeoplecanlearnskillsonthejob
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andbepromoted;4)Increasedsummerandfirstjobyouthemploymentprogramswith
existingfederalandstategrants;and5)Astreamlinedhiringprocess,proactively
anticipatingdepartmentalrequirementsandavoidingdelaystofillpositionsonatimely
basis
PartoftheCityscurrentproblemsstemfrominsufficientstaffingduetothe2008economic
downturncoupledwithaprojectedrateofretirementwhichcouldreach40%overthenextfive
years.AmajorconcernofmanyDepartmentsistoretaininstitutionalmemorybybringingon
qualifiedhirestobetrainedbeforetheexitofthosewiththemostexperience.
TheCityshouldtakeaggressivestepstoimprovemoraleofitsemployeeswhoprovidethe
serviceswhichmaketheCityfunctionandarethefaceoftheCitytoresidents,businesspeople,
andvisitors.
Historically,municipalemploymenthasprovidedenhancedjob,health,andretirementsecurity,
buttheCitynowneedstoworkwiththeunionstoensureworkersrightsandinterestsare
protectedwhileallowingtheflexibilityfortheCitytoprovideefficientandeconomicalservices
toitsstakeholders.
Ongoingevaluationofstaffingandcompensationisneededtoaccommodatethechanging
natureofemploymentinthe21stcentury,allowingforincreasedjobmobility,bothwithinand
betweentheCityandprivateenterprise,soemployeesmayevolveandgrowastheCitydoes.

RevenueandtheFunctionoftheInspectorGeneral
AsInspectorGeneral,FernandoCamposhasbeguntobringordertothecollectionsprocessfor
theCity.Whenhestarted,hewasfacedwithfortyDepartmentsandthirtythreebillingsystems
workinginisolation.Nowthirteenareintegrated,billingcollectionshavebeenexpeditedand
consolidatedandheisworkingtoconcurrentlyincreasetransparencyacrosstheboardand
phaseintheremainingDepartments.
Hehasidentified$75millionincollectiblesfromrebilling,grantsanddisasterassistance
including$30millionstillowedfromtheNorthridgeearthquakealone.Of550
recommendationsmadesofar,manybytheBudgetAdvocates,45%havebeenimplemented
and30%areinprocess.
TheBudgetAdvocatesrecommend:

TheCitymakethepositionofInspectorGeneralpermanent

TheCityfundtheInspectorGeneralssuggestionswhenthereturnwillexceedthecost
including:1)CentralizationofallCitycollections;2)Directassessmentandsystemic
codeenforcementofcostsandfeesbeintegratedandexpanded;3)Animproved
collectionofparkingfees,specificallyfromgaragesandrentalcarcompaniesbe
developedandimplemented;and4)$300thousandbeallocatedforhisDepartmentto
pursuethe$3millionowedbythetop25%ofscofflaws

TheCityencouragetheDWPtoreplicatetheInspectorGeneralmodeliftheircollection
effortscontinuetobeineffective
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TheappropriatedepartmentsevaluatewhatisdrivinglawsuitsagainsttheCityand
accelerateregulationstolimittheCitysexposureinregardstoinfrastructureand
environmentalhazards,vehicleliability,policemisconductandpersonnelcases

TheCityexpandDeputyMayorRickColesmandatetoincentivizethedevelopmentof
newincomesourcesandrewardinnovationbyencouragingmorecitizenparticipation

Theeconomyhasandwillalwaysebbandflow.TheCityneedstoplanfortheinevitable
economicdownturns.EveryDepartmentshouldimmediatelydeveloprealisticplanstobe
updatedregularlyincludinghowtocontrolcostsandincomeduringsuchperiods,andtheCity
shouldadjustitsreservesaccordingly.

AWorldClassCity
LosAngelesneedstouseCaliforniasreputationforleadingedgeenvironmentallegislationas
wellasourCityswelldeservedreputationforinnovationandproductivitytoattractnew
green,hightechandcreativeenterprisesinadditiontoproblemsolvingthinktanksand
boutiquebusinessesacrossthejobspectrum.Withourcurrentdrought,theCityshouldreach
outforcompaniesofferingwaystomitigatetheimpactofglobalwarmingandimprovethe
Citysresilienceacrosstheboard.LosAngelescouldbecomethenewepicenterforinnovative
applicationofgreenenergyandsustainablesolutionsandaleaderforgovernmentaction
acrossthecountry.
WeneedtolinkcauseandeffectforeachDepartmentandworkbackfromtheeffectdesiredto
theactionsthatwillachievewhatsneededbasedonworkload,deliveryofservices,cost
benefitanalysisandtheeffortinvolved.
AllofthismustbeaddressedateverylevelofCityservicesanditmustbedoneasaCity
workingtogether,notasindividualDepartments,withthefollowingquestionsinmind:

HowtoassesswheretheCitystands?

Whataretherealcostsifintangibles,qualityoflife,training,infrastructureupgrades,
educationandroadimpactareincluded?

HowcantheCityholddevelopmentandbusinessesaccountablefortheiractionswhen
theybreakregulations,dodgetaxesandabuseincentiveprograms?

Whattaxationsystemscouldbeimplementedthataretrulyfairandprogressive?

Howcanincreasingworkerswagestoallowthemtostayintheirneighborhoodsbe
usedtoincreaseCityincome?

Whatotherresourcesexist?Andhowdowemeasuresuccess?

Inconjunctionwiththeforegoing,andespeciallywithregardstoefficiencyandtransparencyfor
bothcostcuttingandincomegeneration,theCityneedstoestablishapanelofAngelenosto
provideaviewfromoutsideCityHallandtoactonbehalfofstakeholderstoprovide
parameters,monitorcomplianceandtrackimprovementsyeartoyearandhelpmakeLos
AngelestheWorldClassCityoftheMayorsvision.

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Respectfullysubmitted,
The20142015BudgetAdvocates

JayHandal,WestLosAngeles,CoPresident
TerrenceGomes,SouthRobertson,CoPresident
DanielleLafayette,EmpowermentCongressWest,CoVicePresident
LindaLee,OlympicPark,CoVicePresident
HowardM.Katchen,ShermanOaks,Treasurer
LizAmsden,HistoricHighlandPark,Secretary
ErickMorales,MidCity,AssistantSecretary
GlennBailey,NorthridgeEast,Parliamentarian
ElvinaBeck,CentralHollywood,WebMaster

DarleneAtkins,Voicesof90037
ScottBytof,DowntownLosAngeles
NelsonCastillo,WestlakeSouth
KrysteeClark,SunlandTujunga
KevinDavis,FoothillTrailsDistrict
VeradelPozo,BoyleHeights
MackyFortu,RampartVillage
PunamGohel,NorthHillsWest
HarveyGoldberg,Tarzana
SharronHaynes,Watts
JeannetteHopp,VanNuys
JackHumphreville,GreaterWilshire
JoanJacobs,HarborGatewayNorth
JonLiberman,SouthRobertson
BrandonPender,StudioCity
MargaretPeters,EmpowermentCongressSouthwest
SusanReimers,ElysianValleyRiverside
BarbaraRinguette,SilverLake
MarcRuelas,Arleta
ErikSanjurjo,HollywoodUnited
KenSchwartz,Tarzana
BrettShears,EmpowermentCongressNorth
KrisnaVelasco,GrenadaHillsSouth
JoanneYvanekGarb,WestHills

plusnonBudgetAdvocateparticipants

SteveQuat,StudioCity
DanielWiseman,M.D
GeorgeWolfberg,PacificPalisades

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