"Live Within our Means" Charter Amendment

By Frederick Sutton

I have reviewed the proposed outline by Neighborhood Council Budget Advocate Jack Humphreyville and I support the plan to balance our budget, save our pension funds and restore our core services.

The Plan will also incorporate the financial requirements of the Infrastructure Plan, the Pension Funding Plan, and all other phases of the City's operations.

Each year, the City will be required to approve a two year Budget.

The Plan and the Budget are required to be balanced, where revenues exceed expenses, at all times.

The City will develop an Infrastructure Plan that will detail the financial requirements necessary to allow our infrastructure to be in a "good to excellent condition" by June 30, 2024. Infrastructure includes, but is not limited to, streets, sidewalks and curbs, parks, street lights, buildings and facilities, sewers, storm water drainage, motor vehicles, and information technology systems.

The Infrastructure Plan will also include the budget for capital expenditures.

The City will develop a Pension Funding Plan that will detail how the City will fully fund its two underfunded pension plans (the Los Angeles City Employee Retirement System and the Fire and Police Pension Plans are only 72.6% funded) by June 30, 2024, using reasonable assumptions consistent with other pension plans.

After June 30, 2024, the City will maintain its infrastructure in a "good to excellent condition" and its pension plans will be at least 100% funded.

The Plan and the Budget will require the City to have actual funding sources to finance any increases in spending or decreases in taxes.

The Plan, the Budget, the Infrastructure Plan, and the Pension Funding Plan (collectively, the "Plans") will be prepared based on Generally Accepted Accounting Principles.

The Mayor and a majority of the City Council will be required to approve the Plans.

The Controller and the City's independent accounting firm will each be required to attest that the Plans have been prepared in accordance with Generally Accepted Accounting Principles.

The Controller and the City's independent accounting firm will each be required to attest that the Plan and the Budget are balanced, where revenues exceed expenditures.

Within 60 days of the end of each fiscal quarter (September 30, December 31, and March 31), and within 120 days of the fiscal year end (June 30), the Controller will be required to affirm that the Budget is balanced and is projected to be balanced in the future.

The City Attorney will be required to attest that the Plan and the Budget meet all legal and regulatory requirements, including that all transfers involving City departments are legal, including those with the three Proprietary Departments.

The General Managers of all departments will be required to approve their sections of the Plans.

The General Managers of all departments will be required to notify the Mayor, the City Council, the Controller, and City Attorney if their department's budget is not balanced at any point in time or is inconsistent with the Plans.

The Neighborhood Councils will be notified of all approvals and any notifications indicating that the Plans are not balanced.

The City will have community presentations at least four times a year detailing the status of the Plans.

The Plans will be updated annually.

Beginning June 30, 2014, the City will be required to maintain a Reserve Fund equal to at least equal to 5% of General Fund Revenues.

The City will be required to maintain its existing bond ratings, and take all measures necessary to maintain such bond ratings.

In the case of a natural disaster, the target date envision by the Infrastructure Plan may be extended for one year.

The City bears the burden of proof that the Plan, the Budget, the Infrastructure Plan, and Pension Funding Plan are consistent with a balanced budget, where revenues exceed expenditures based on Generally Accepted Accounting Principles.