Los Angeles Municipal Code Art. 3 Approval by the City Council of the Community Redevelopment Agency

BUDGET AND ITS AMENDMENTS

Section

(a) Definitions:

“Budget Modifications” – Modifications supplemental to the CRA budget, as provided for in Subsection (e) of this section.

“City” – The City of Los Angeles.

“Council” – The City Council of the City of Los Angeles.

“CRA” – The Community Redevelopment Agency of the City of Los Angeles.

“CRA Budget” – The annual budget of the CRA as approved by the Mayor and City Council and thereafter adopted by the CRA.

“Line Item” – Any administrative expenditure account or a specific work program objective within a project area budget which is part of the CRA budget.

“Proposed Budget” – An annual CRA budget for the ensuing fiscal year submitted by the CRA to the City in preliminary form, as provided in Subsection (d)1, for consideration and approval.

(b) It is the intent of this article to incorporate consideration of the proposed budget of the CRA with the City’s review and consideration of its own annual budget and to provide for City consideration of any amendments to the CRA budget.

(c) The proposed budget shall contain specific detailed estimates and information identifying

(1) the proposed expenditures of the CRA,

(2) the indebtedness proposed to be incurred by the CRA,

(3) the anticipated revenues of the CRA,

(4) the work programs for the coming year, including specific goals and criteria to measure their achievement,

(5) an examination of the previous year’s achievements and a comparison of the achievements with the goals of the previous year’s

work program, and

(6) such other information as the Council and the Mayor deem necessary for a complete review, or which they specifically request

for such purpose.

(d) Procedures for adoption of the CRA budget are as follows:

1. At such time as the Mayor may prescribe for City departments, but not later than the first day of January of each year, the CRA

shall submit its proposed budget to the Mayor, and concurrently transmit duplicate copies to the City Council and the Director of the Office of Administrative and Research Services. The proposed budget shall be submitted on forms and in the manner prescribed by the Mayor, the Council, or by ordinance.

2. On or before the 20th day of April of each year the Mayor shall submit to the Council said proposed budget of the CRA together

with any modifications proposed by the Mayor. The Council may approve, disapprove or modify in whole or in part any item in the proposed budget of the CRA and the Mayor’s proposed modifications, provided however that any such approval, disapproval or modification shall be consistent with the previously adopted redevelopment plans, existing CRA obligations and redevelopment law.

3. On or before the first day of June, said proposed budget, as approved, or as modified and approved by the Council, shall be

transmitted forthwith to the Mayor upon whose approval and signature it shall be transmitted to the CRA and become effective upon adoption by the CRA. If the Mayor fails to act within five (5) working days after adoption by the Council, the CRA budget shall be signed by the City Clerk and transmitted to the CRA and shall thereupon become the CRA budget for the ensuing fiscal year upon adoption by the CRA. No form of budget adopted by the CRA shall have any legal force or effect unless or until said budget has been approved or deemed approved by the Council.

4. If the Mayor disapproves of any increase, decrease, omission or insertion of any item or items of the CRA budget by the Council,

the Mayor may veto, restore or otherwise change any such item or items to the amount originally proposed by the Mayor or to any amount between that originally proposed by the Mayor and that adopted by the Council. The Mayor, however, shall have no power to change any description or limitation made applicable to an item by the Council except to veto such change or to restore the description or limitation to the condition originally proposed by the Mayor. Upon completion of such changes as the Mayor determines proper, the Mayor shall within five (5) days return the budget to the Council with a statement of the Mayor’s action.

5. Upon receipt by the Council of the budget veto message from the Mayor, the Council shall have five (5) working days within

which to overcome such action of the Mayor relative to any item or items of the CRA budget. Any item or items of the budget which have been vetoed or otherwise changed by the Mayor, and which have not been, by a two-thirds vote of all of the members of the Council, either readopted notwithstanding the objections of the Mayor or changed to an amount between that as originally adopted by the Council and that as changed by the Mayor, shall remain as modified by the Mayor.

Where the Mayor has changed any description or limitation applicable to an item, the Council, in its action pursuant to this section, shall have no power to alter such description or limitation other than to restore it to the condition in which it was originally adopted by the Council.

Upon the expiration of the Council’s five (5) day period, or sooner if the Council by majority vote so directs, the budget as returned by the Mayor and to the extent as modified thereafter by the Council, shall be signed and transmitted by the City Clerk to the CRA and shall become the CRA budget for the ensuing fiscal year upon adoption by the CRA.

(e) Any budget modifications requiring Council approval proposed by the CRA after the adoption of the CRA budget shall be

simultaneously submitted to the Mayor and Council for Council approval before such may become effective and operative. The Council may

modify, approve, or disapprove said proposed modifications. Budget modifications proposed by the CRA and approved by the Council shall become modifications to the CRA budget upon Council approval. Such modifications as approved or modified and approved by the Council shall be returned to the CRA for adoption. Modifications requiring Council approval include the following:

(1) when a line item in a CRA budget, increases or decreases by $250,000 or more or by 10% of any item whichever is less so long as the change exceeds $25,000 or by such other amount as the Council determines by resolution; or

(2) when a line item any amount is to be created or deleted.

(f) All expenditures and indebtedness of the CRA shall be in conformity with the CRA budget and any modifications thereto.

(g) Nothing in this article shall be construed as providing either Mayor or Council approval of any CRA matter other than the CRA budget and modifications thereto. Any items within the CRA budget which require specific Council approval before or during their implementation by the CRA, or which Council has requested to be submitted for approval before or during such implementation, shall require Council approval separate from the CRA budget approval process established in this article.

(h) No proposed budget or budget modification subject to Council approval pursuant to Subsection (e) adopted by the CRA shall become effective or operative until each is approved or deemed approved by the Council as provided by this article and by the California Health and Safety Code Section 33606 as amended. Any proposed budget modification that is not subject to Council approval pursuant to Subsection (e) shall become effective upon adoption by CRA.

SECTION HISTORY

Added by Ord. No. 166,071, Eff. 8-25-90. Amended by: “Line item” definition, Ord. No. 166,222, Eff.10-19-90; Ord. No. 173, 363, Eff. 7-29-00, Oper. 7-1-00.