"As the city's CEO, I'm committed to putting our fiscal house in order. Our focus on reducing pension costs, increasing budget reserves, and growing our economy is paying off for L.A. residents through better credit ratings and lower interest payments, which frees up money for neighborhood investments," Mayor Garcetti said.
- "A highly diverse and growing tax base and economy, despite persistent challenges associated with below average socioeconomic indicators: In fiscal year 2015, the tax base increased more than 6% to a largest-ever $464 billion, and the city projects growth at slightly more conservative pace in its four-year outlook. The employment base is diversifying with trade, technology and entertainment as important drivers of future growth. Unemployment rates for the city have improved, though still exceed the state and nation.
- "Strong financial management enabling the city to grow reserves: Four consecutive years of operating surpluses have grown reserves after deficits in the previous five years. Strong financial management has kept expenditure growth at bay since major cuts were implemented in 2010 and 2011. Additionally, the city has met or exceeded its minimum reserve level threshold since then. Most significantly, the city’s four-year budget outlook has reversed course and the city now projects reaching surplus operations in 2019.
- "Fixed costs related to pensions and retiree health benefits, while significant, make up a manageable proportion of city expenditures: A city policy requiring greater employee contributions towards retirement benefits has helped rein in costs, which are projected to peak in 2017 and then level out. Additionally, funding of retiree health benefits (also known as Other Post-Employment Benefits, or OPEB) compares favorably to most cities since Los Angeles has pre-funded its obligation since 1989, while consistently contributing at least the annual required contribution (ARC)."