City of Los Angeles

Revenue Options

Miguel A. Santana City Administrative Officer August 21, 2012

Executive Summary
Achieving fiscal sustainability requires revenue and expenditure solutions. The City has successfully reduced and postponed budget deficits through the course of four fiscal years with both. New revenue options are required to address the structural deficit. City residents should be given the opportunity to decide to increase taxes to support the services they demand. The City should be prepared to make drastic cuts should revenue measures not succeed at the ballot box.
City of Los Angeles 2

City of Los Angeles

Documentary Transfer Tax

California Cities Oakland Berkeley Rate per $1000 of sale price $15.00 $15.00

San Francisco
Los Angeles (proposed)

$5.00 - $15.00
$9.00

Culver City
Los Angeles (current) Santa Monica Pomona Redondo Most Others

$4.50
$4.50 $3.00 $2.20 $2.20 $0.55

City of Los Angeles

Parking Occupancy Tax

Select National Cities Pittsburgh San Francisco Chicago Philadelphia New York Miami Los Angeles (proposed) Oakland Seattle Los Angeles (current) 45% 25% 19.75% to 50% 20% 10.375% to 18.375% 15% 15% 10% 10% 10%

City of Los Angeles

Options for Revenue Ballot Measures

City of Los Angeles

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Comparison of Revenue Measures

Gas Users Tax (1%) Transient Occupancy Tax (1%) Billboard (1%) Communication Users Tax (1%) Electric Users Tax (1%) City Sales Tax (0.1%) Parking Occupancy Tax (5%) Documentary Transfer Tax (4.55%) Transfer & Parking Taxes
City of Los Angeles

160

140

120

100

80

60

40

20

All Other Taxes

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Impact of Revenue on Budget Deficit

450 400 350 300 250 200

Deficit $53 $155 $114 $72

Parking Occupancy Tax (5%) Documentary Tax (0.45%)

150
100 50 0 2013-14 2014-15 2015-16 2016-17

City of Los Angeles

Options to Reduce Expenditures

Cut 10 percent from General Fund funding to all departments Eliminate negotiated Cost of Living Adjustment increases Ensure Full Cost Recovery of City support of Recreation and Parks $240 66 24

Eliminate Crossing Guards

Cease Funding of LA Homeless Services Authority Freeze Police Hiring Eliminate all Capital Improvement Expenditure Program spending Implement new Modified Coverage Plan ($2.3 m engine / $1.1 m ambulance) Eliminate Neighborhood Council subsidy Eliminate Zoo subsidy Close Animal Shelters Develop P3 agreement for parking structures/meters (one-time)

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9 8 7 5 4 2 2 $50 -$100
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City of Los Angeles