§ 4.69.050. Expenditure plan for the use of revenues received from the imposition of the transactions and use tax.

The revenues raised from the imposition of the transactions and use tax shall be used for public safety and homeland security purposes, as follows:

A.

Purpose of the Tax. The revenues raised by this measure will be used to provide sworn and support personnel, equipment and facilities to increase, maintain, improve, expand and strengthen law enforcement, public safety, youth and adult crime prevention programs, homeland security, local anti-terrorism efforts, and emergency response and will be used to:

1.

Manage emergency/disaster operations, including community awareness, and "first response" capabilities to extraordinary emergencies;

2.

Improve crime investigations and basic public safety services by increasing resources for traditional law enforcement services;

3.

Expand community-oriented policing services;

4.

Expand the role of local law enforcement to include intelligence gathering and manage local anti-terrorism efforts;

5.

Manage emergency response and related training/preparedness by inter-agency coordination and standardized training for public safety services and "first response" capabilities (i.e., Emergency Operations Center/Terrorism Early Warning);

6.

Provide youth and adult programs that prevent crime as limited by Section 4.69.050B.2.g;

7.

Provide communications and specialized equipment for communications capability and interoperability among public safety agencies throughout the county;

8.

Provide for expanded justice-related resources necessary to respond to increased arrests resulting from enhanced police services.

B.

Allocation of Revenues. Except for revenues received in fiscal year 2004-05, the auditor-controller's calculation and apportionment to the county and each city shall be made monthly beginning October 20 of each fiscal year based upon a maintenance-of-effort certification form submitted by the public agency requesting an apportionment. The maintenance-of-effort certification form shall be submitted by October 1 of the fiscal year, and shall both describe the agency's budgeted use of the revenues derived by this levy, and demonstrate that the amounts budgeted for public safety surpass by at least the amount of apportioned revenue received by way of this tax, the funds previously budgeted for public safety purposes as adjusted pursuant to subdivision C of this section. The auditor-controller shall suspend distribution of funds to any entity that does not file the maintenance-of-effort certification form. Funds for which distribution is suspended shall not be disbursed until the next regular distribution following receipt of satisfactory certification. For fiscal year 2004-05 the county and each city shall certify the amount budgeted for public safety purposes in the previous fiscal year and the auditor-controller shall distribute funds monthly as prescribed in this chapter.

1.

First, from the funds allocated to the county by the state board of equalization, the auditor-controller shall be reimbursed for actual and necessary direct and indirect costs incurred while complying with this chapter. Actual and necessary direct and indirect costs shall be those from the prior fiscal year.

2.

Of the remaining funds:

a.

An annual allocation to provide for and maintain a countywide interoperability system of up to two percent (2%). The board of supervisors shall, by September 30 of each year, determine the percentage adjustment, up to 2%, for interoperability.

b.

Nine percent (9%) shall be allocated for services for sheriff's custody operations.

c.

Six percent (6%) shall be allocated for other county law enforcement and justice related purposes, including prosecution and defense costs and probation services.

d.

All funds allocated to the county, including the 2% for interoperability, the 9% for sheriff's custody operations, the 6% for other county law enforcement related purposes, and the funds allocated for the county unincorporated area, will be appropriated by the county board of supervisors, as part of the annual county budget, in accordance with the terms of this chapter.

e.

After the allocations pursuant to subsections B.2.a through B.2.d of this section, the remaining funds shall be distributed to the county and each city within Los Angeles County, as follows: the lesser of the minimum allocation of $500,000 plus a distribution of the remaining balance based on population percentage or one hundred percent of the city's or county's total public safety budget for the fiscal year preceding the year in which the allocation is made. The population shall be determined by the auditor-controller based upon data received from the state department of finance. In no event shall the total amount allocated to a city or county (i.e., the sum of the minimum allocation and the allocation based upon population) exceed the city's or county's total public safety budget for the fiscal year preceding the year in which the allocation is made. Effective fiscal year 2006-07, the minimum allocation of $500,000 shall be adjusted annually based on the increase or decrease in the U.S. Department of Labor, Bureau of Labor Statistics' Consumer Price Index for the Los Angeles-Riverside-Orange County Area (CPI) for the most recently published percentage change for the 12-month period for the preceding fiscal year, however, the annual adjustment shall not exceed three percent (3%).

f.

Prior to appropriation by the board, the sheriff shall provide annually for board approval of a proposed methodology as well as program detail related to the unincorporated allocation that takes into consideration such factors as population, response time or crime rates. In the event that during the year the sheriff is required to shift unincorporated resources provided in his budget because of criminal activity or other factors, the sheriff will inform the board of such action as soon as possible.

g.

At its sole discretion, each city may use up to 15 percent of its allocation for youth and adult programs to prevent crime. At its sole discretion the county may use up to 15 percent of its unincorporated area allocation under subsection B.2.e for youth and adult crime prevention programs. Such funds shall also be allocated in accordance with factors reflecting the overall need of the unincorporated area.

C.

Maintenance-of-Effort.

1.

In order to assist local governments in maintaining a sufficient level of public safety and homeland security services, the proceeds of this chapter shall be designated exclusively for the purposes specified in Section 4.69.050. Local financial resources to the sheriff and city law enforcement agencies shall not be reduced below the adopted budget for the 2003-04 fiscal year as adjusted. Beginning in fiscal year 2006-07, the minimum maintenance-of-effort requirement shall be adjusted annually. For fiscal year 2006-07 only, the minimum maintenance-of-effort requirement shall be increased or decreased in accordance with the difference between the actual amount of Public Safety and Homeland Security Act funds allocated to the sheriff or local law enforcement agency for fiscal year 2005-06 and the estimated allocation for fiscal year 2006-07 but in no event shall it be less than the minimum maintenance-of-effort requirement in the fiscal year 2003-04 base year. Beginning in fiscal year 2007-08 and each fiscal year thereafter, the minimum maintenance-of-effort requirement shall be increased or decreased annually based on the change in the amount allocated to the sheriff or local law enforcement agency from the Public Safety and Homeland Security Act fund in the immediately preceding fiscal year and the corresponding amount allocated to the local agency in the next preceding fiscal year but in no event shall it be less than the minimum maintenance-of-effort requirement in the fiscal year 2003-04 base year.

2.

The adopted budget for the 2003-04 fiscal year as adjusted may be adjusted to reflect reduced expenditures necessitated by reductions in state and federal assistance, or reductions in any other revenue source beyond the control of that local government entity. The county shall not take such action without a two-thirds vote of the board of supervisors.

3.

The adopted budget for the 2003-04 fiscal year shall be adjusted for revenue exclusions. For each exclusion category, only those amounts that were appropriated for public safety services in the respective year's adopted budget are excludable. This applies to the "base year" and any subsequent year. Appropriations funded by the following budgeted revenues must be excluded:

a.

Grant funds received by the county or city from any source.

b.

Asset forfeiture revenues received by the county and city.

c.

Revenues budgeted including revenues from capital leases by the county or city for capital outlay expenditures, which include any debt service payments or fixed asset purchase.

d.

Revenues budgeted for providing public safety services under contract to another jurisdiction.

e.

Revenues budgeted in the current fiscal year as a result of a change of organization or reorganization that became effective pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 subsequent to the "base year".

f.

Revenues budgeted by the county or city pursuant to Chapter 3 of Part 6 of Division 3 of Title 2, or any other reimbursement by the state for homicide trial costs, including, but not limited to, Chapter 1649 of the Statutes of 1990 and its successors.

g.

Revenues budgeted from any source by the county or city to respond to a state of emergency declared by the Governor pursuant to the California Emergency Services Act.

h.

Appropriations by the county or city, for one-time expenditures related to public safety services. One-time expenditures mean material non-recurring expenditures.

i.

Budgeted appropriations must be adjusted upwards for cost savings (actuarial savings, reduced costs for pension obligations due to the issuance of pension bonds) in appropriations for retirement and workers' compensation costs that do not result in a change in benefit levels.

4.

If a loss or reduction in revenue including state and federal assistance, or reductions in any other revenue source beyond the control of that local government entity occurs, proceeds from this chapter may be used to ensure public safety funding is not reduced below the adopted budget for the 2003-04 fiscal year as adjusted, only if local financial resources to public safety are not reduced more than the total percent of the loss or reduction within the affected year. Except as prescribed, Public Safety and Homeland Security Tax Act revenues received by the county or a city may not be utilized to meet the maintenance-of-effort requirements of the act.

D.

Unspent Funds. Any unspent proceeds from this chapter by the county, or a city, within a fiscal year, shall be held in a public safety reserve trust account established by that entity. Each entity shall annually determine the amount of unspent funds from the prior year to be appropriated for the purposes specified in Section 4.69.050A.

E.

The allocation to the county or a city in any fiscal year shall be reduced if the amount of funding for public safety services for that entity is less than the 2003-04 adopted budget amount, adjusted as required by Section 4.69.050C. The reduction shall be the difference between the amount funded and the adjusted base year maintenance-of-effort requirement. Nonparticipating entities shall not receive funding. Funds otherwise allocable to a nonparticipating entity, funds from a reduction in allocation because of an entity's failure to meet the base year requirement, funds otherwise allocable pursuant to the requirements of Section 4.69.050B.2.e, and funds unspent more than five years after their allocation will be returned to the pool for redistribution as prescribed in this chapter, and may, as necessary, be deducted by offset against an entity's current-year allocation.

(Ord. 2004-0041 § 3 (part), 2004.)