City Council

(14)\n12-1670-S10\nARTS, PARKS, LIBRARIES, AND COMMUNITY ENRICHMENT and\nBUDGET AND FINANCE COMMITTEES’ REPORT relative to\nauthorizing an earmark of Proposition K program interest funds for\nthree specified projects, and the transfer of maintenance funds to the\nProposition K Capital Fund.\nRecommendations for Council action, SUBJECT TO THE APPROVAL\nOF THE MAYOR:\n1. AUTHORIZE the earmark of up to $6.0 million in Proposition K\nprogram interest funds to reduce the shortfall for the design and\nconstruction activities for three future specified projects\nidentified in Attachment No. 8 of the Proposition K – L.A. For\nKids Steering Committee (LAFKSC) report dated September\n26, 2025, attached to the Council file.\n2. AUTHORIZE LAFKSC staff to identify and transfer funds\npreviously allocated for capital projects within the Proposition K\nmaintenance account (Fund No. 43L) to the Proposition K\ncapital account, as well as any accrued and future interest\nearnings from both the maintenance account and the\nProposition K administrative account (Fund No 43M).\n3. AUTHORIZE the Controller to adjust balances within the\nProposition K Funds (Fund Nos. 43K, 43L, and 43M) to\neffectuate the funding adjustments associated with\nRecommendation Nos. 1 and 2 above, in accordance with\ninstructions to be provided by the City Administrative Officer\n(CAO).\n4. AUTHORIZE the CAO to prepare technical adjustments, as\nneeded to carry out the intent of the Council action; and,\nAUTHORIZE the Controller to implement those technical\nadjustments.\nFiscal Impact Statement: The LAFKSC reports that there is an\nanticipated impact of $58.4 million on the General Fund to the extent\nthat Proposition K funds are insufficient to fully fund the remaining\nspecified projects. Insofar as the Proposition K funding capacity\ndiscussed in said LAFKSC report can be utilized to fund the cost of\nthe remaining specified projects, the level of cost offsets incurred by\nthe General Fund for project delivery could decrease. Program staff\nare completing closeout activities and expect to identify residual funds\nfor completed projects that could be used to offset shortfalls for Ballot-\nmandated specified projects. An earmark of $6.0 million in Proposition\nK interest funds is recommended to address funding shortfalls for\nthree out of the 31 specified projects remaining in the Proposition K\nprogram, as detailed in Attachment 8 of said LAFKSC report, which\nhave the largest shortfalls. Specific cost estimates for operating and\nmaintaining the projects addressed through the funding\nrecommendations of said LAFKSC report have not yet been\ndeveloped, but will be addressed through the City budget as projects\nare completed.\nFinancial Policies Statement: The LAFKSC reports that approval of\nthe recommendations in the report are in compliance with the City’s\nFinancial Policies in that current operations will be funded by current\nrevenues.