Budget and Finance Advisory Committee — Los Angeles, CA
Date: 2026-04-03
Time: 13:00

Budget and Finance Advisory Committee (BFAC)

 Friday, April 3, 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 February
 27, 2026, Budget and Finance Advisory Committee meeting.

 (4) Office of the Controller Presentation
 Controller Kenneth Mejia will present on departmental trends related to
 City revenue sources, expenditures, liabilities and special funds.

 (5) City Fund Overview
 The Committee will be briefed on the composition, structural
 framework, and usage restrictions of the City’s various fund categories.

 (6) Focus Area Updates
 Committee members will provide updates regarding the current status
 and trajectory of their ongoing research and policy development
 initiatives.

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

 (8) Consideration of Progress Report
 The Committee will deliberate on the necessity and scope of initiating
 work on a progress report to the City Council’s Budget and Finance
 Committee.

 (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, April 3, 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, Derric J. Johnson, Joseph M. Lumarda, Tom
 De Simone (4); Absent: Gilda Haas (1)

 Chairperson Ron S. Galperin called the meeting to order at 1:05 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 February
 27, 2026, Budget and Finance Advisory Committee meeting.


 Member Tom De Simone moved to approve the Minutes of the February 27, 2026
 Budget and Finance Advisory Committee Meeting, which was seconded by Member
 Joseph M. Lumarda – Ayes: Galperin, Johnson, Lumarda, De Simone (4); Nays: (0);
 Absent: Haas (1)

(4) Office of the Controller Presentation
 Controller Kenneth Mejia will present on departmental trends related to
 City revenue sources, expenditures, liabilities and special funds.


 Kenneth Mejia, City Controller, and Controller’s Office representatives presented an
 overview of the Revenue Forecast Report for the remainder of Fiscal Year (FY) 2025-26
 and the upcoming FY 2026-27 (available in Council file No. 26-0295), which
 contains revenue projections, current economic outlook, key risks, assumptions, areas of
 concern, and strategic approach recommendations. The Controller’s Office
 demonstrated the real time financial and performance monitoring dashboards available
 on the Controller’s website for departmental metrics, General Fund revenue and
 expenditure analysis, and liability payouts. The Committee, Controller Mejia, and
 Controller’s Office representatives discussed the prioritization of recommended solutions
 to address revenue shortfalls and departmental deficits, such as investment in the City’s
 infrastructure and trend analyses to mitigate liability claims, third-party insurance
 coverage, departmental spending accountability and performance measurements, and
 the City’s competitiveness in the business climate in comparison to other jurisdictions.

 The Controller’s Office representatives discussed the impact of budgetary reductions
 and staffing challenges on the management of special funds, Council scheduling of
 Controller’s Office audit reports, repayment by City departments and the write-off
 process for Reserve Fund loans, building relationships with City departments to serve as
 a catalyst for the utilization of special funds; and, recommendations for systematic
 changes for idle and underutilized special funds, such as using heat map diagrams to
 track the utilization of special funds, tracking grants with expiration dates, developing an
 internal City’s Cost Allocation Plan for non-grant reimbursements to capture the direct
 and indirect costs for full cost recovery, and collection of cannabis business taxes from
 both licensed and unlicensed cannabis dispensaries.

 Controller Mejia also discussed the resources needed to increase audit functions in the
 Controller’s Office, potential methods to reverse trends in liability claims and payouts,
 benefits of performance-based budgeting and metrics for expenditures and settlement
 trends, a recommendation that would provide the City Controller the ability to introduce
 Motions on matters within the jurisdiction of the Budget and Finance Committee; and,
 upcoming audits undertaken by the Controller’s Office.

(5) City Fund Overview
 The Committee will be briefed on the composition, structural
 framework, and usage restrictions of the City’s various fund categories.


 Sofia Martinez, Coro Fellow, and Golden Bachelder, UCLA Luskin School of Public
 Affairs Fellow, presented an overview of the City’s various funds and background
 information from the Controller’s Office website regarding special funds (available in
 Council file No. 25-0314). A total of 883 City funds are broken down in the categories of
 special purpose funds, proprietary department funds, General Fund, and the pension
 and retirement funds. A total of 678 special funds are divided into the categories of
 governmental, proprietary, fiduciary, and special revenue fund groups; with the
 governmental category being the largest fund group. The special funds are also broken
 down by function categories, the largest of which are in the categories of economic
 development, community and public safety, and debt related functions. The 678 special
 fund accounts were categorized by their respective primary fund sources, which include
 bond proceeds and debt financing, proprietary revenue, fees, fines, charges, and
 assessments; local and state funding, federal funding, General Fund transfers, and
 funds authorized by development agreements.

 Certain sources of funds restrict the City’s discretion in expending special funds, such as
 funds derived from state and federal grants, or ballot measures with specific usage
 restrictions. The City has established certain fees that do not rely on outside funding
 sources that dictate their respective utilization. Special funds, including funds from
 outside sources, are approved by the City Council; and, the City Council authorizes the
 City Controller to establish the special fund accounts. There are Reserve Fund
 implications for special funds because only the General Fund cash balance reverts to the
 Reserve Fund at the end of each fiscal year; whereas, uncommitted special funds are
 unspent encumbrances that remain in the respective fund accounts until expended. The
 ability to alter the scope of a special fund, whether it be to consolidate, reallocate, or
 change the terms within a special fund for expenditure, depends on separate regulatory
 factors. However, there is opportunity for discretion in the interpretation of informal
 restrictions that are not dictated by an outside funding source, but rather by the
 determination of the City’s legal counsel as to how a special fund can be spent.
 Therefore, changes in the interpretation of usage restrictions can also have implications
 on how the special funds can be spent.

 The average balance of a special fund is $11.9 million, and the median balance of
 $323,000, demonstrates that there are significant outliers among the special fund
 accounts. There are a total of 81 special fund accounts without any cash balances, 134
 special fund accounts with less than $5,000; 265 special fund accounts with over $1
 million, and 15 special accounts with over $100 million. The Committee, Fellows, and the
 City Attorney discussed the potential options of sunsetting funds and evaluating the
 City’s discretion in the interpretation of usage restrictions to address the idle and
 underutilized special funds.

(6) Focus Area Updates
 Committee members will provide updates regarding the current status
 and trajectory of their ongoing research and policy development
 initiatives.


 The Committee discussed the current status of the research and policy development
 initiatives undertaken by the ad hoc subcommittees. The ad hoc subcommittee focused
 on economic development and asset management is exploring the creation of a new
 entity to manage certain City assets and properties, which could assist in repositioning
 real assets over time for a greater economic development and revenue generation. This
 subcommittee discussed exploring the process as to how City departments deem City-
 owned properties as surplus land, and identifying any impediments in the process;
 exploring revenue generation and community benefits from air rights for development
 purposes; identifying City assets that can be monetized for other forms of development
 as the City’s development patterns change around the City’s transportation system and
 the liberalization of housing development law. A meeting with the Department of City
 Planning was requested to discuss these potential revenue generation options, as well
 as a high-level review of the Surplus Land Act. This subcommittee may explore how to
 change the economic development climate around the City’s real estate assets that
 would result in lasting revenue generation, and how the repositioning of City-owned
 property can create new surrounding economic activity that would generate property and
 sales tax revenue and jobs, as opposed to the lease or sale of a specific asset as a one-
 time transaction. The economic development special purpose funds that have been idle
 can be evaluated to determine whether any of these funds can be accessed to hire an
 asset management company for a professional analysis to yield recommendations over
 the course of the next budget cycle, or to conduct a study on the formation of a private
 enterprise to manage the City’s real estate assets. The ad hoc subcommittee focused on
 revenue efficiency and evaluation reported on a meeting held with the City Treasurer
 regarding the enhancement of investment returns for the funds managed by the City, and
 the enhancement of returns from the management of Tax and Revenue Anticipation
 Notes, and special funds. The Committee can also explore identifying key and strategic
 locations for the installation of digital signage to generate an income stream.

(7) Open Discussion
 The Committee will refine the BFAC work plan, goals, and focus areas
 for the year, as needed.
 No discussion for this Item.

 (8) Consideration of Progress Report
 The Committee will deliberate on the necessity and scope of initiating
 work on a progress report to the City Council’s Budget and Finance
 Committee.


 No discussion for this item.

 (9) Next Steps and Calendar Review


 The Committee discussed the procedures for developing a report or list of
 recommendations at the next BFAC Meeting to move forward for consideration by the
 Budget and Finance Committee during the upcoming FY 2026-27 Budget Hearings. The
 next BFAC Meeting is scheduled on Friday, May 1, 2026 at 1:00 p.m. in City Hall.

 (10) Adjournment


 The Committee Meeting was adjourned at 3:15 p.m. with the following Members present:

 Ron S. Galperin, Joseph M. Lumarda, Tom De Simone (3); Absent: Gilda Haas,
 Derric J. Johnson (2)



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.