LOS ANGELES – The city of Los Angeles’ finances are currently stable, but there could be significant challenges on the horizon, according to the Annual Comprehensive Financial Report released by City Controller Kenneth Mejia Wednesday.
Mejia’s report noted that nearly $2 billion in one-time pandemic-related funding from the federal government has been mostly spent by the city. Other concerns include increased labor and pension costs, a growing need to invest in serving unhoused residents, and climate change impacting the city’s capital and human infrastructure — which Mejia said the city has not invested in enough.
Total city revenue for the fiscal year that ended last June was around $20 billion, an increase of 8.7% from the prior year. Expenses totaled $16.6 billion, a 4.5% decrease from the prior year.
The city has $37.3 billion in bonded debt and long-term notes payable, up $3.1 billion from the previous year. The largest departmental expenditures from the general fund were $1.8 billion to the police department, $780.2 million to the fire department, and $330.6 million to the sanitation department.
“All this impels us to `link arms’ (as Mayor Karen Bass has advocated) to undertake the difficult, long-term changes that will not only ensure financial stability but address the urgent need to make Los Angeles a more equitable and sustainable city,” Mejia wrote in a letter attached to the report. “We pledge that the Office of the Controller will be a collaborative partner in meeting those shared challenges.”
