INGLEWOOD – The city of Inglewood released its first quarter projections for fiscal year 2024-2025 which shows a 45% decrease in revenue and a nearly 25% increase in spending.
The City approves their annual budgets every September before the start of each fiscal year that runs from October 1 through September 30. The first quarter runs from Oct. 1 through Dec. 31.
Instead of hearing a presentation on the budget report the City opted to “receive and file” meaning they would be taking no action on it but rather recording it for the public record.
On September 24, 2024, the City Council adopted FY2024-25 General Fund expenditures, totaling $224,251,487 and General Fund revenues of $224,372,756. The projected General Fund operational balance for FY2024-25 was $121,270.
According to the report, Admissions Tax and Property Tax revenue are the only tax sources showing an increase during the reporting period.
Admissions Tax receipts total $5.1 million or 26.8% of the total budgeted amount of $19.1 million, compared to $512,674 last fiscal year in the same period. This is $4.6 million or 899.8% more than the same period last fiscal year. SOFI Stadium has committed to providing $15 million annually, as per the agreement with the City, with this amount adjusted each year for inflation.
The City attributes the increase from a combination of revenue from COSM and the Intuit Dome.
According to the Los Angeles County Assessor’s Office, Inglewood experienced a net taxable value increase of 20.2% for FY2024-25. This increase is attributable to the increase in the assessed property values and the 2.0% Assessor applied California Consumer Price Index (CCPI) increase per Proposition 13 in addition to value gains in entertainment development.
The City received $9.8 million or 18.5% of the projected revenue estimate of $52.9 million, compared to $9.7 million last fiscal year in the same period. This resulted in an increase of $142,827, or 1.5%.
Revenue in all other categories are down.
Sales Tax receipts total $2.5 million or 9.3% of the total budgeted amount of $26.4 million, compared to $7.0 million last fiscal year same period. This is $4.6 million or 65.0% less than the same period last fiscal year.
“Although sales taxes appear significantly lower, this is primarily due to an accounting adjustment, which is expected to normalize by yearend.”
The City attributes the adjustment to “an anticipated economic softness, driven by decreased sales in the automotive sector and general consumer goods, as consumers continue to exercise caution in their spending.”
The City received $3.8 million or 20.2% of its total budgeted amount of $18.6 million in Utility Users Tax (UUT) in the first three months of the fiscal year, compared to $4.4 million last fiscal year. This amount is $633,499 or 14.4% less than the amount collected for the same period last fiscal year.
Other local taxes which are a combination of business license fees, card club revenues, transient occupancy tax, parking taxes, non-residential construction taxes, and franchise taxes are collectively down 11.4% from the last fiscal year for the same time period.
“To date, receipts are $4.8 million or 12.7% of total budgeted amount of $37.6 million, compared to $5.4 million last fiscal year same period. This resulted in a decrease of $613,235 or 11.4%.”
The significant decrease is attributed to the Transient Occupancy Tax and Card Club revenues.
Expenditures through December 2024 are $47.0 million or 20.6% of the current budget of $228.2 million, compared to $37.8 million last fiscal year same period. This is $9.2 million or 24.5% more than the same period last fiscal year.
The City attributes the increase in the overall General Fund expenditures from General Government (Non-Departmental) and Police and Fire.
According to publicly available records the City is currently in contract negotiations with the unions representing members of the Inglewood Police Department and an increase in spending in outside law enforcement contracts related to the Inglewood Sports and Entertainment District.
The expenditures for the Police Department are $20.1 million or 18.3% of the current annual budget of $110.0 million, compared to $18.4 million last fiscal year in the same period. Expenses for the Los Angeles County Fire services are $7.1 million or 33.3% of the $21.3 million budgeted contract, compared to $7.1 million last fiscal year in the same period. Police and Fire expenditures combined are $1.7 million or 6.8% more than the same period last fiscal year.
Non-departmental spending on payments for insurance, retiree health, Pension Obligation Bonds, and, contractual services increased by $7.7 million.
“To date, $23.4 million or 24.9% of the $94.0 million has been expended, compared to $15.7 million last fiscal year same period. The increase of $7.7 million is primarily due to property tax relief payments. Additionally, there is an accounting adjustment (for liability) prior year that augments this increase.”
The City announced a $500 property tax rebate in late 2024 which some residents allege they have yet to receive despite the City extending the application filing period to mid January of this year.
The full 2024-2025 First Quarter Budget Review Report can be accessed on the City’s website here.
