Los Angeles Municipal Code

Sec. 5.120.4. Creation of Fund.

Sec. 5.120.4. Creation of Fund. (a) Finding and Purpose. Pursuant to Charter Section 302, there is hereby established within the City Treasury a fund to be known as the Budget Stabilization Fund . The purpose of the Budget Stabilization Fund is to provide a method to mitigate against excessive spending during prosperous years and to provide resources to help maintain service levels during lean years. The Budget Stabilization Fund is not intended to be a funding source for the expansion or enhancement of City services nor intended to provide long-term budgetary relief. (b) Definitions. (1) Annual Growth Rate. The term Annual Growth Rate shall mean the percentage change in the Ongoing Tax Revenue measured between one completed fiscal year and its preceding fiscal year. (2) Average Threshold Dollar Amount. The term Average Threshold Dollar Amount shall mean the product of the Average Threshold Rate and the Ongoing Tax Revenue reported in the Budget with respect to the prior fiscal year’s Budget. (3) Average Threshold Rate. The term Average Threshold Rate shall mean the average Annual Growth Rate measured over the previous twenty (20) completed fiscal years. (4) Budget. The term Budget shall mean the general City budget for an ensuing fiscal year as set forth under Charter Sections 312 through 315. (5) Budget Stabilization Fund. The term Budget Stabilization Fund shall mean the fund created pursuant to this Section 5.120.4. (6) General Fund Tax Revenue. The term General Fund Tax Revenue shall mean the total sum of all non-encumbered, pledged, or special purpose tax revenues collected from the following sources: (i) Property Taxes, as provided under Article XIIIA of the California Constitution, and any personal property taxes or fees allocated to the City by the County of Los Angeles or the State; (ii) Telephone (Communications), Electricity, and Gas Users Tax as provided under Article 1.1 of Chapter II of the Los Angeles Municipal Code (LAMC); (iii) Business Taxes as provided under Article 1 of Chapter II of the LAMC; (iv) Uniform Sales and Use Taxes as provided under Article 1.6 of Chapter II of the LAMC and any other sales and use taxes allocated to the City by the County and the State; (v) Transient Occupancy Tax as provided under Article 1.7 of Chapter II of the LAMC; (vi) Real Property Transfer Tax as provided under Article 1.9 of Chapter II of the LAMC;