City of Los Angeles. Community Financial

Transcription

1 City of Los Angeles Community Financial Report Summary of the Fiscal Year 214 Comprehensive Annual Financial

2 Fellow Angelenos: March 31, 215 As City Controller, I serve as chief auditor, accountant and watchdog over the City s finances and operations. Each year my office produces a Comprehensive Annual Financial Report (CAFR) detailing the City s revenues, expenditures, assets and liabilities. Enclosed you will find the second annual Community Financial Report (CFR), which summarizes the findings of the CAFR and presents the data in easy-to-read charts and graphs, so that everyone can understand the finances of the City. We re continuing to make financial data more interactive by posting it on our open data site, ControlPanel.LA. This year we are launching a dashboard that presents departmental operating indicators from the past 1 years visit ControlPanel.LA/cafr to learn more. Controller s Message The CFR is a financial reporting project of our Office to educate and empower Angelenos on the finances of the City. We want to hear from you -- or Controller.Galperin@lacity.org with your feedback. Sincerely, RON GALPERIN City Controller

3 Los Angeles Table of Contents

4 Estimated Population City of Los Angeles 212: 3,827,24 213: 3,866, : 3,94,657 CA Department of Finance Personal Income LA County Per Capita 211: $43,62 212: $45,8 213: $46,53 U.S. Bureau of Economic Analysis Property Valuation City of LA Net Value ( s) 212: $46,456, : $416,539,45 214: $437,98,451 LA County Assessor Unemployment Rate City of Los Angeles Annual 212: 12.1% 213: 1.9% 214 (Dec): 8% CA Employment Development Department Facts + Indicators Reserve Fund As % of General Fund, July 1 Debt Per Capita Outstanding, June 3 212: 5.12% 212: $5, : 6.71% 213: $5,92 214: 7.45% 214: $6,85 By Mike Reicher via CartoDB Preliminary Financial Report CAFR Important Dates In Los Angeles History 1781 Founded 185 Incorporated 1928 City Hall Opened 2 Current Charter Effective 1

5 Electorate Mayor City Attorney Controller City Council Charter Offices City Administrative Officer Office of Finance/Treasurer City Clerk City Ethics Commission City Organization Police Fire DONE Employee Relations Housing & Community General Services Economic & Workforce Information Technology Zoo Aging Transportation Animal Services Emergency Management Disability Personnel Building & Safety El Pueblo Convention Center Cultural Affairs Recreation & Parks Fire & Police Pension Library Employees Retirement Planning Public Works Proprietary Departments Public Works Board Street Lighting Street Services Engineering Contract Admin Sanitation Water & Power Harbor Airports 2

6 The Basics What is a CFR? The Community Financial Report (CFR) provides a summary of the 214 Comprehensive Annual Financial Report (CAFR), with an emphasis on the following three areas: The Basics Budget Presentation of the General Fund budget results Net Position Focus on the City s assets and liabilities Activities Breakdown of the City by function with operational indicators On the CFR While this report is summarizing and condensing the 214 CAFR of the City of Los Angeles, this is not an audited document and contains some information supplemental to the CAFR. Government-wide financial data herein is presented on the same basis as the CAFR including all funds and component units, unless explicitly noted. Interested stakeholders are encouraged to view the full CAFR for the City s complete and detailed official financial statements. 3

7 General Fund Revenues Where the City s Money Comes From FY 214 General Fund Budgetary Operating Results (Non-GAAP Budgetary Basis) receipts totaled $5.936 Billion Top Revenue Sources Property Tax $1.2 Billion LA City s share of the 1% tax on valuation of property Licenses, Permits, Fees & Fines $1. Billion Fees, fines, permits, penalties and reimbursements collected by departments Utility Users Tax $627.4 Million Composed of electric, gas and communications users' taxes General Fund Revenues More Revenue Sources Business Tax $475.4 Million Gross receipts tax on doing business within the City Parking Users Tax $95.7 Million Tax on occupying a space in a parking facility Transient Occupancy Tax $184.4 Million Tax levied on rent of hotel or motel rooms *All Others $1.8 Billion Sales Tax $356.5 Million Tax collected on tangible personal property sold Documentary Transfer Tax $181.5 Million Tax assessed at time of property sale Tobacco Settlement $9.1 Million Revenue collected under settlement with tobacco companies 4

8 General Fund Expenditures How the City Spends its Revenues FY 214 General Fund Budgetary Operating Results (Non-GAAP Budgetary Basis) - expenditures & encumbrances at June 3 totaled $5.741 Billion Top Expenditure Categories Salaries $2.944 Billion Payments to sworn, civilian, and as-needed employees More Expenditure Categories Employee Benefits $584.2 Million Health, workers compensation and other related employee benefits Pension Contribution $943.7 Million Annual contribution to the retirement systems General Fund Expenditures Expenses $463.2 Million Departmental expenditures for services, goods, leases, and reimbursements Equipment $16.8 Million Departmental direct expenditures for equipment Capital Outlay $1.8 Million General Fund Capital Improvement Expenditure Program *Not inclusive of all City capital project funding *All Others $411.5 Million Library and Rec & Parks $27.9 Million Charter appropriations to departments Water & Electricity $4. Million Payments for water and electrical services rendered to departments Liability Claims $55.6 Million Payment of monetary claims or legal actions against the City 5

9 Net Position Balancing the City s Assets and Liabilities FY 214 Government-wide Summary Statement of Net Position Assets represent what the City owns including: Cash and Cash Equivalents Receivables Inventories Restricted Assets Capital Assets Total Assets $53.3 Billion Total Liabilities $3.1 Billion Liabilities represent what the City owes including: Accounts Payable Bonds and Notes Compensated Absences Claims and Judgments Net Position Capital Assets $37.4 Billion * Other Assets $15.9 Billion * Long-Term Liabilities Other Liabilities $27.8 Billion $2.3 Billion $1,7, $(3,) Changes in Net Position ($ in s) Governmental Activities Business-Type Activities Total The Statement of Net Position is the financial position of the city after subtracting liabilities (what the City owes) from assets (what the City owns) Total Net Position $23.3 Billion 6

10 Government-Wide Activities represent major functions of City government for financial reporting purposes. Public Works Protection of Persons and Property Health and Sanitation Transportation City Activities General Government Airports Community Development Water and Power Convention Center Cultural and Recreational Services Harbor Sewer Government-Wide Activity Types: 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 7

11 City Activities - Expenses Measures the outflow of resources using accrual-basis accounting. Figures below are in millions. Airports $ % Community Development $ % Harbor $ % Interest on Long-Term Debt $16. 1% Cultural & Recreational Services $ % Transportation $426. 3% Health & Sanitation $ % Public Works $ % Power $3, % Protection of Persons & Property $2, % Water $1,53.2 8% Sewer $542. 4% Convention Center $38.5 % General Government $1, % Governmental Business City Activities - General & Program Revenues Represents resources that are generated by government functions. Figures below are in millions. Harbor $56.3 4% Airports $1, % General Revenues and Other Changes $4, % Governmental Business Power $3, % Community Development $34.5 2% Cultural & Recreational Services $ % Water $1,17.1 8% Sewer $ % Convention Center $24.9 % General Government $ % City Activities Protection of Persons & Property $ % Public Works $ % Health & Sanitation $ % Transportation $ % Highlights Overall expenses totaled $12.9 billion in FY 214 Governmental Activities decreased by 5.1% versus FY 213 Business-Type Activities increased by 6.1% versus FY 213 Highlights Overall revenues totaled $13.9 billion in FY 214 Program revenues increased by 3.6% versus FY 213 General revenues increased by 7.1% versus FY 213 8

12 $ in 's Arrests Made 21: 151,174 Building Permits Issued 21: 115,225 Snapshot of Employees + Activity Expenses by Fiscal Year 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, Ambulance Medical Responses By EMT By Paramedic 21: 127, ,48 Expenses Employees 2, 18, 16, 14, 12, 1, 8, 6, 4, 2, All medical professionals who respond to 911 calls are required to be certified as emergency medical technicians (EMTs), trained in basic emergency medical response techniques. Employee Count LAPD - LAFD - ANIMAL SERVICES - BUILDING & SAFETY - EMERGENCY MANAGEMENT Protection of Persons & Property 211: 16,48 212: 162, : 15, : 13, : 115, : 121,14 213: 126, : 133, : 124, , : 134,195 25, : 146,2 261, : 166,58 262,44 Percent Change FY % %.45% 9

13 $ in 's Snapshot of Employees + Activity Expenses by Fiscal Year 45, 4, 35, 3, 25, 2, 15, 1,8 1,6 1,4 1,2 1, 8 6 Employee Count DEPARTMENT OF TRANSPORTATION Transportation 1, 5, Expenses Employees Transit Passengers LADOT Vehicle Trips 21: 3,535,921 New Bicycle Lane Miles Added 21: 1 Citations Written Total Number Per Eight Hour Shift 21: 2,587, The City of Los Angeles collected $161 million in parking fines in FY 214. The City establishes parking policy and issues citations to ensure the regular flow of traffic and to more effectively manage the City's limited parking supply. 211: 27,466, : : 2,461, : 23,824, : : 2,522, : 26,467, : : 2,654, : 25,453, : : 2,659, % -59.4%.18% % 1

14 $ in 's Homebound Meals Served Senior Meals 21: 89, : 781, : 756, : 768, : 755,48-1.7% Tenant Complaints Processed 21: 5, : 6,48 212: 5, : 5,78 214: 5,874 Snapshot of Employees + Activity Expenses by Fiscal Year 1.63% 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, Affordable Units Monitored 21: 15, : 2, : 2, : 21, : 25, % Expenses Employees 1,4 1,2 1, The Housing and Community Investment Department uses its Affordable Housing Database to proactively monitor the City s affordable housing inventory, identify units whose affordable status is at risk of expiration, and prepare preservation plans for those units Employee Count AGING - PLANNING - DISABILITY - HOUSING & COMMUNITY INVESTMENT - ECONOMIC & WORKFORCE DEVELOPMENT Community Development 11

15 $ in 's Senior Club Membership Total Members 21: 15,8 Youth in Sports Programs 21: 53,422 Snapshot of Employees + Activity Expenses by Fiscal Year 6, 5, 4, 3, 2, 1, Library Items Circulated 21: 16,524,292 Expenses Employees 4, 3,5 3, 2,5 2, 1,5 1, According to the American Library Association, the LA Public Library is the biggest in the nation by service area, 2nd largest by total number of library visits and 4th largest by total number of print and electronic materials. 5 Employee Count CULTURAL AFFAIRS - EL PUEBLO - LIBRARY - RECREATION & PARKS - ZOO Cultural & Recreational Services 211: 1,77 212: 12, : 12, : 1, : 55, : 61, : 61, : 66, : 15,144,84 212: 15,337,32 213: 14,983, : 15,86,65-1.7% 7.43%.69% 12

16 $ in 's Graffiti Removed # of Locations 21: 621, : 616, : 546,94 213: 58, : 546,52 Snapshot of Employees + Activity Expenses by Fiscal Year 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, LED Streetlights Total Installed 21: 211: 5, 212: 95, 213: 14, 214: 154, Streets Resurfaced Centerline Miles 21: : : : : 245 Expenses Employees 3,5 3, 2,5 2, 1,5 1, A street s grade, on an A-F scale, determines how it can be repaired. B and high C streets get a shiny black slurry seal or crack seal. Most C streets can be resurfaced by scraping off and replacing the first few inches of asphalt. F streets have to be completely reconstructed, at much greater expense. 5 Employee Count CONTRACT ADMINISTRATION - ENGINEERING - STREET LIGHTING - STREET SERVICES - BOARD OF PUBLIC WORKS Public Works -5.9% 1% % 13

17 $ in 's Refuse Collected In Tons Recyclables Collected In Tons Snapshot of Employees + Activity Expenses by Fiscal Year 1,2, 1,, 8, 6, 4, 2, Bulky Items Collected In Tons Expenses Employees 3, 2,5 2, 1,5 1, The Los Angeles Bureau of Sanitation responds to calls and requests through the City's app and call center to remove large or bulky items from sidewalks, alleys and roadways. 5 Employee Count BUREAU OF SANITATION Health, Sanitation & Sewer 21: 867, : 882,5 212: 851, : 848,89 214: 852,635 21: 141, : 148, : 143, : 15,38 214: 198,143 21: 33,33 211: 32, : 27,64 213: 34, 214: 33,72.44% 31.76% -.82% 14

18 $ in 's Snapshot of Employees + Activity Expenses by Fiscal Year 1,2, 1,, 8, 6, 4, 2, 4, 3,5 3, 2,5 2, 1,5 1, 5 Employee Count LOS ANGELES WORLD AIRPORTS (LAWA) Airports Expenses Employees Aircraft Movements In s 21: 1,25 Air Cargo Tons In s 21: 2,242 Aircraft Passengers In,s 21: 63 Los Angeles International Airport (LAX) is one of the busiest airports in the world, ranking 3rd in aircraft movement, 6th in passenger movement, and 15th in cargo movement, according to the Airports Council International. 211: : 2, : : : 2, : : : 2,4 213: : : 2, : % -.29% 5.5% 15

19 $ in 's Snapshot of Employees + Activity Expenses by Fiscal Year 45, 4, 35, 3, 25, 2, 15, 1,2 1, Employee Count PORT OF LOS ANGELES (POLA) Harbor 1, 5, Expenses Employees Inbound Tonnage In,s 21: 88 Outbound Tonnage In,s 21: 67 Vessel Arrivals 21: 2,124 By California s Harbors & Navigation Code, the captain of a ship coming into the Port of LA cannot bring a ship to dock. That job is reserved for the City s 13 Port Pilots, a group of highly skilled individuals who understand the unique contours of the Port required to safely bring a major vessel to shore. 211: : : 2, : : : 2,1 213: : : 2,89 214: : : 2, % 2.78% 5.12% 16

20 $ in 's Snapshot of Employees + Activity Expenses by Fiscal Year 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, 1, 8, 6, 4, 2, Employee Count DEPARTMENT OF WATER & POWER (LADWP) Water and Power Expenses Employees Energy Customers In s 21: 1, : 1,461 Water Customers In s 21: : 667 Gallons Water Sold In,s 21: : 169 The Los Angeles Department of Water and Power began delivering water to Angelenos in % of its water comes from the Los Angeles Aqueduct, which diverts water from Central California and the Southern Sierra, 51% is purchased from the Metropolitan Water District, and 12% comes from local groundwater or recycled water. 212: 1, : : : 1, : : : 1,53 214: : %.44% -.56% 17

21 Looking Forward We at the Controller s office use the four Ms as a guide and vision for the future of Los Angeles City government. Looking Forward Management Professionalism and efficiency begin with management that is engaged, supportive and trustworthy. Metrics Measuring our work by a set of standards allows us to gauge our performance and assess where improvements are needed. Modernization We must work to improve our performance, methods, and processes by leveraging technology wherever possible. Money We are committed to upholding the public trust by managing revenues and expenses accurately and efficiently. 18

22 Talk Like An Accountant Learn to talk the talk by picking up basic terms used by City accountants calculators not included Balance Sheet Consists of assets, liabilities and equity General Obligation Bonds Voter approved debt to fund municipal projects Liabilities Obligations that arise from past events or transactions Talk Like An Accountant Income Statement Lists revenues, expenses and changes in fund balance Funds Accounts that are segregated for specific use Accounts Receivable Amounts to be collected Encumbrance An obligation or commitment to pay Fiscal Year 12-month period beginning on July 1 st and ending on June 3 th Accounts Payable Payments owed to others 19

23 2 N. Main Street, Suite 3 Los Angeles, CA 912 Phone: Controller.lacity.org