Budget and Finance Advisory Committee — Los Angeles, CA
Date: 2026-05-01
Time: 13:00

Budget and Finance Advisory Committee (BFAC)

 Friday, May 1, 2026 - 1:00 PM
 ROOM 401, CITY HALL
 200 NORTH SPRING STREET, LOS ANGELES, CA 90012

 MEMBERS: RON S. GALPERIN, CHAIR
 DERRIC J. JOHNSON, VICE CHAIR
 GILDA HAAS
 JOSEPH M. LUMARDA
 TOM DE SIMONE


 Armando Bencomo - Legislative Assistant - (213) 978-1080
 (or Clerk.BudgetandFinanceCommittee@lacity.org)

 Submit written comment at LACouncilComment.com

The audio for Committee meetings is broadcast live on the internet at https://clerk.lacity.gov/calendar. Additional
information regarding Committee procedures provided at the end of this agenda.

The Committee will take public comment from members of the public in-person only; there will be no public comment by
teleconference. Additional information regarding Committee procedures provided at the end of this agenda.

For interpretation services and Sign Language Interpreters, at no cost, please contact clerk.interpretation@lacity.org or
call (213) 978-1133 and provide the language desired, specific meeting, meeting date, and the number of people in the
group.

All requests should be submitted with as much advance notice as possible, preferably two business days prior to the
meeting you wish to attend for additional language interpretation and five business days for Sign Language
Interpretation. We will do our best to accommodate requests with shorter notice, but securing last-minute interpreters or
captioners may not always be feasible.



ITEM(S)

 (1) Call to Order and Roll Call

 (2) Public Comment

 • Multiple Agenda Item Comment
 • General Public Comment
 (3) Approval of Minutes
 The Committee will review and approve the Minutes of the April 3,
 2026, Budget and Finance Advisory Committee meeting.

 (4) Progress Report Discussion
 Committee members will consider the possibility of preparing and
 presenting a progress report to the City Council’s Budget and Finance
 Committee on Phase 1 of the Budget and Finance Advisory Committee
 work.

 (5) Presentation by Office of Finance
 The City Treasurer and the Chief Investment Officer will present on the
 management of the City’s General Pool and City investment programs.

 (6) Presentation by Neighborhood Council Budget Advocates
 Co-chairs of the Neighborhood Council Budget Advocates, Jay Handal
 and Glenn Bailey, will present on the 2026 White Paper
 recommendations.

 (7) Discussion on 2026-27 Budget Process
 Committee members will discuss opportunities to engage the City
 Council’s Budget and Finance Committee on the ongoing 2026-27
 Budget Process.

 (8) Open Discussion
 Committee members will refine the BFAC work plan, goals, and focus
 areas for the year, as needed.

 (9) Next Steps and Calendar Review

 (10) Adjournment



SUPPORTING MATERIALS

Materials relating to items on the agenda are available on the Budget and Finance Advisory Committee webpage found at
https://councilcommittee.lacity.gov/budget/BudgetandFinanceAdvisory/. To subscribe to the Budget and Finance Advisory Committee
agendas, please subscribe using this link: https://lacity.gov/government/subscribe-agendas/city-council

PUBLIC INPUT AT CITY COUNCIL COMMITTEE MEETINGS
Members of the public who wish to speak on one or multiple items shall have an opportunity to speak up to one minute per item up
to a total of two minutes for two or more agenda items. At regular meetings, members of the public shall also have an opportunity to
speak up to one minute for general public comment on any matter within the subject-matter jurisdiction of the Committee. The
Committee is not required to take general public comment at special meetings. The Committee may limit the total amount of time for
public comment on any specific agenda item, on all agenda-items collectively, and/or on general public comment, based on the
anticipated time required to hear from public speakers on any given or all agenda items, on the availability of Committee members
and the need to maintain quorum, and on any other relevant factor. The Committee shall not discuss or take action relative to any
general public comment except as explicitly permitted under the Brown Act.

COMMITTEE INFORMATION, ASSIGNMENTS, AND STRUCTURE

https://clerk.lacity.gov/clerk-services/cps/council-committee-meetings/info-assignments-structure

SPECIAL ACCOMMODATION

Requests for reasonable modification or accommodation from individuals with disabilities, consistent with the Americans with
Disabilities Act, can be made by contacting the City Clerk's Office at (213) 978-1133. For Telecommunications Relay Service for the
hearing impaired, please see the information below.

NOTICE TO PAID REPRESENTATIVES

If a member of the public is compensated to monitor, attend, or speak at this meeting, City law may require them to register as a
lobbyist and report this activity. More information can be found at Los Angeles Municipal Code 48.01 et seq. or at
ethics.lacity.org/lobbying. Further assistance can be found by contacting the Ethics Commission at (213) 978-1960 or
ethics.commission@lacity.org.

EXHAUSTION OF ADMINISTRATIVE REMEDIES

A member of the public seeking to challenge a City action in court may be limited to raising only those issues raised at the public
hearing described in this notice, or in written correspondence delivered to the City Clerk prior to the public hearing in time reasonably
to be considered by the Committee members. Any written correspondence delivered to the City Clerk before the City Council's final
action on a matter will become a part of the administrative record.

TELECOMMUNICATIONS RELAY SERVICE (TRS) COMMUNICATIONS

Telephone communication is one of the most important forms of communication in society today. Due to advancements in
technology, telephone devices have evolved with new services and capabilities. Individuals who are deaf and hard of hearing, and
individuals with a speech disability, may be able to avail themselves of both for peer-to-peer and third-party telecommunications
relay service (TRS) communications. Telecommunications Relay Service is a telephone service that allows persons with hearing or
speech disabilities to place and receive telephone calls. TRS is available in all 50 states, the District of Columbia, Puerto Rico and
the U.S. territories for local and/or long distance calls. TRS providers - generally telephone companies - are compensated for the
costs of providing TRS from either a state or a federal fund. There is no cost to the TRS user.

What forms of TRS are available? There are several forms of TRS, depending on the particular needs of the user and the equipment
available: TRS includes: Text to Voice TIY-Based TRS; Speech-to-Speech Relay Service; Shared Non-English Language Relay
Service; Captioned Telephone Relay Service; Internet Protocol Relay Service; and Video Relay Service. Please visit this site for
detail descriptions, https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

Don't hang up! Some people hang up on TRS calls because they think the caller is a telemarketer. If you hear, "Hello, this is the
relay service…" when you pick up the phone, please don't hang up! You are about to talk, through a TRS provider, to a person who
is deaf, hard-of-hearing, or has a speech disability.

For more information about FCC programs to promote access to telecommunications services for people with disabilities, visit the
FCC's Disability Rights Office website.

MINUTES – BUDGET AND FINANCE ADVISORY COMMITTEE (BFAC)

 Friday, May 1, 2026

 ROOM 401, CITY HALL - 1:00 PM
 200 NORTH SPRING STREET, LOS ANGELES, CA 90012

 MEMBERS: RON S. GALPERIN, CHAIR
 DERRIC J. JOHNSON, VICE CHAIR
 GILDA HAAS
 JOSEPH M. LUMARDA
 TOM DE SIMONE


 Armando Bencomo - Legislative Assistant - (213) 978-1080
 (or Clerk.BudgetandFinanceCommittee@lacity.org)

 Submit written comment at LACouncilComment.com

The audio for this meeting is broadcast live on the internet at https://clerk.lacity.gov/calendar. Additional information
regarding Committee procedures provided at the end of this agenda.



ITEM(S)

 (1) Call to Order and Roll Call


 Members Present: Ron S. Galperin, Gilda Haas, Joseph M. Lumarda, Tom De
 Simone (4); Absent: Derric J. Johnson (1)

 Chairperson Galperin called the meeting to order at 1:14 p.m.

 Vice Chairperson Johnson subsequently arrived at 1:18 p.m.

 (2) Public Comment

 • Multiple Agenda Item Comment
 • General Public Comment
 The Committee provided an opportunity for Multiple Agenda Item and General Public
 Comments.

(3) Approval of Minutes
 The Committee will review and approve the Minutes of the April 3,
 2026, Budget and Finance Advisory Committee meeting.


 Member Joseph M. Lumarda moved to approve the Minutes of the April 3, 2026 Budget
 and Finance Advisory Committee Meeting, which was seconded by Member Tom De
 Simone – Ayes: Galperin, Haas, Lumarda, De Simone (4); Nays: (0); Absent:
 Johnson (1)

(4) Progress Report Discussion
 Committee members will consider the possibility of preparing and
 presenting a progress report to the City Council’s Budget and Finance
 Committee on Phase 1 of the Budget and Finance Advisory Committee
 work.


 The Committee discussed the preparation of a summary report detailing the status of the
 BFAC’s work and priorities broken down by category, and the timing in which to present
 information and recommendations to the Budget and Finance Committee.

(5) Presentation by Office of Finance
 The City Treasurer and the Chief Investment Officer will present on the
 management of the City’s General Pool and City investment programs.


 Diana Mangioglu, City Treasurer and Director of Finance, and Thomas Juarez, Chief
 Investment Officer, Office of Finance, presented an overview of the Investment Division’s
 responsibilities, investment practices and strategy (presentation is available in Council
 file No. 25-0314). The Investment Division is responsible for actively managing the City’s
 general investment pool, which includes approximately $16.5 billion in General Fund and
 Special Fund monies. The Investment Division also oversees approximately $2.5 billion
 of funds that are separately managed with special considerations outside of the general
 investment pool. Core responsibilities of the Investment Division include the
 management and assessment of daily and monthly cash flow needs to ensure there is
 sufficient liquidity for City operations, and revenue forecasting to incorporate into cash
 inflow and investment decisions, strategy and execution. The Investment Division
 operates in strict adherence to the California Government Code, and the Statement of
 Investment Policy for the City of Los Angeles approved the Mayor and City Council.
 The Investment Policy objectives include safety of principal, liquidity, and a market rate
 of return. Regarding the safety of principal objective, emphasis is placed on high-quality,
 low-volatility assets such as fixed income securities. Securities that are invested on a
 daily basis include United States (U.S.) Treasury and government agency bonds, Fannie
 Mae, Freddie Mac, and home loan bank securities; Moody’s and S&P-rated corporate
 notes with an A rating or better, money market funds, short-term commercial paper, AAA-
 rated asset backed securities, and securities from supranational organizations. The
 liquidity objective is a key component that drives the daily investments in the core,
 reserve, and extended reserve portfolios of the general investment pool to meet the
 City’s liquidity needs. The Investment Division operates off a six-month cash flow
 projection model based on departmental inflows and outflows to match or immunize
 liabilities with individual security purchases that provide the highest available rate of
 return on investment and avoid costly overdraft charges, given the current interest rate
 environment.

 Regarding the market rate of return objective for the expected interest income earned in
 the current capital markets, the core, reserve, and extended reserve portfolios within the
 general investment pool each track a specific Index benchmark. The core portfolio,
 which contains a range of one-day to one-year investments, is benchmarked against the
 three-month Treasury Bill. The reserve portfolio, which contains a range of one-year to
 five-year investments, is benchmarked against the Bank of America one-year to five-year
 U.S. Corporate and Government Index. The extended reserve portfolio, which contains a
 range of five-year to ten-year investments, is benchmarked against the Bank of America
 five-year to ten-year U.S. Treasury Index.

 The Committee and Office of Finance representatives discussed the management of
 the core portfolio to meet the City’s liquidity needs and match anticipated departmental
 outflows, the management of the reserve and extended reserve portfolios in accordance
 with the risk characteristics of their respective benchmarks to safely enhance yield, and
 the month-end rebalancing to match the benchmark characteristics for each portfolio.
 The $2.5 billion in the special fund monies invested separately from the general
 investment pool have specific restrictions, and include construction-type monies from
 proprietary City departments and bond issuance funds that are managed to match
 specific cash flows. The Office of Finance representatives also discussed inter-fund
 borrowing through Tax and Revenue Anticipation Notes (TRAN) and from the City
 Treasury, staff retention efforts within the Investment Division, and the accounting of
 monies in the portfolios.

(6) Presentation by Neighborhood Council Budget Advocates
 Co-chairs of the Neighborhood Council Budget Advocates, Jay Handal
 and Glenn Bailey, will present on the 2026 White Paper
 recommendations.
 Jay Handal, Co-Chair of the Neighborhood Council Budget Advocates, presented an
 overview of the 2026 White Paper prepared by the Neighborhood Council Budget
 Advocates (document is available in Council file No. 25-0314). Mr. Handal and the
 Committee discussed the current challenges associated the City’s annual budget
 process, and potential solutions reflected in the list of recommendations contained in the
 2026 White Paper. Recommended actionable items include institutionalizing a five-year
 financial plan, revenue diversification and expansion, operational efficiencies through
 technology and artificial intelligence such as predictive maintenance, automated permit
 review, and claims risk modeling; strengthening Reserve Fund policies, delivering
 equitable services throughout the City, financial stability through data-driven revenues,
 cultural change in accountability, potential bond issuances to address the structural
 deficits in the City’s budget, risk audits on systematic infrastructure needs, and the
 utilization of Geographic Information System (GIS) mapping and geo-fencing analytics to
 assess sidewalk and street repairs.

 The 2026 Los Angeles Neighborhood Council Budget Day is scheduled on June 27,
 2026 in City Hall.

(7) Discussion on 2026-27 Budget Process
 Committee members will discuss opportunities to engage the City
 Council’s Budget and Finance Committee on the ongoing 2026-27
 Budget Process.


 Charles Turner, Council District 5, and the Committee discussed the process and
 timeline of the Budget and Finance Committee’s Budget Hearings for the consideration
 of the Mayor’s Fiscal Year 2026-27 Proposed Budget; and, options to present the
 BFAC’s recommendations during the Budget Hearings, or at a later date, to the Budget
 and Finance Committee.

(8) Open Discussion
 Committee members will refine the BFAC work plan, goals, and focus
 areas for the year, as needed.


 The Committee discussed the focus areas prioritized by the ad hoc subcommittees. The
 ad hoc subcommittee focused on economic development and asset management held
 discussions facilitated by Councilmember Katy Yaroslavsky’s Office, Council District 5,
 regarding the exploration of using idle Special Funds dedicated to economic
 development to fund the design and establishment of a potential economic development
 corporation to manage and reuse City assets. Another recommendation is to establish a
 review process to assess how underutilized City properties are deemed as surplus land,
 and how to re-design the departmental determination process to achieve more objective
 determinations. A third focus area may involve the assistance of the City Attorney’s
 Office to develop a thorough understanding of the Surplus Land Act and any other legal
 constraints or compliance issues that may impede the disposition of City assets, to
 recommend any policy changes or reforms. A fourth focus area is to evaluate the City’s
 assets as economic development drivers in a Citywide holistic approach. This ad hoc
 subcommittee may also explore pre-approved housing templates for the City’s
 development approval process for potential revenue growth.

 The ad hoc subcommittee focused on the area of financial management discussed the
 exploration of trends associated with idle Special Funds and the revenue impact of
 TRAN inter-fund borrowing. The ad hoc subcommittee focused on the area of new
 revenues, expenditures, efficiencies, and innovations is prioritizing the issues around the
 continuum of increasing liability costs related to public safety agencies, structural
 prevention of infrastructure liabilities, personnel-related costs, mechanisms for
 institutional accountability, claims management reform and structural budgeting process,
 and managing liability exposure. The Committee requested to engage the City Attorney’s
 Office to discuss the liability claims management process and the status of the proposed
 legislation that would impose limits or caps on liability claims against public entities.

 The Committee also discussed establishing a regular actionable process and a goal on
 an ongoing basis to establish momentum during each BFAC meeting, and holding
 discussions on the ad hoc subcommittee progress reports at the start of the meetings.

 (9) Next Steps and Calendar Review


 The Committee discussed the preparation of a summary report for review during the next
 BFAC meeting. The next BFAC meeting is scheduled on Friday, June 5, 2026 at 1:00
 p.m. in Room 401, City Hall.

 (10) Adjournment


 The Committee Meeting was adjourned at 3:35 p.m. with the following Members present:

 Ron S. Galperin, Derric J. Johnson, Gilda Haas, Joseph M. Lumarda, Tom De
 Simone (5); Absent: (0)


If you challenge this Committee's action(s) in court, you may be limited to raising only those issues you or someone else raised at
the public hearing described in this notice, or in written correspondence delivered to the City Clerk at or prior to, the public hearing.
Any written correspondence delivered to the City Clerk before the City Council's final action on a matter will become a part of the
administrative record.
Materials relative to items on this agenda can be obtained from the Office of the City Clerk's Council File Management System, at
lacouncilfile.com by entering the Council File number listed immediately following the item number (e.g., 00-0000).

Telecommunication Relay Services

Telephone communication is one of the most important forms of communication in society today. Due to advancements in
technology, telephone devices have evolved with new services and capabilities. Individuals who are deaf and hard of hearing, and
individuals with a speech disability are following these trends and are rapidly migrating to more advanced telecommunications
methods, both for peer-to-peer and third-party telecommunications relay service (TRS) communications.

Telecommunications Relay Service is a telephone service that allows persons with hearing or speech disabilities to place and
receive telephone calls. TRS is available in all 50 states, the District of Columbia, Puerto Rico and the U.S. territories for local and/or
long distance calls. TRS providers - generally telephone companies - are compensated for the costs of providing TRS from either a
state or a federal fund. There is no cost to the TRS user.

What forms of TRS are available?There are several forms of TRS, depending on the particular needs of the user and the equipment
available: TRS includes: Text to Voice TIY-Based TRS; Speech-to-Speech Relay Service; Shared Non-English Language Relay
Service; Captioned Telephone Relay Service; Internet Protocol Relay Service; and Video Relay Service. Please visit this site for
detail descriptions, https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

Don't hang up! Some people hang up on TRS calls because they think the CA is a telemarketer. If you hear, "Hello. This is the relay
service .. . " when you pick up the phone, please don't hang up! You are about to talk, through a TRS provider, to a person who is
deaf, hard-of-hearing, or has a speech disability.

For more information about FCC programs to promote access to telecommunications services for people with disabilities, visit
theFCC's Disability Rights Office website.