Fire Hydrant Fund Transfers to City's Reserve Fund

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April 2024 LAFD Chief offered 45% of the LA Fire Hydrant Installation Fund be transferred to the City's Reserve Fund. A year later the City Council approved the transfer.

Reasons for the request by Chief Crowley, to transfer $1.3 million of the $2.9 million in the L.A. Fire Hydrant Installation Fund to the City's Reserve Fund; include

  • California Gov't Codes 50050 - 50055 mandated inactive monies be escheated 
  • L.A. City budget crisis of 2024!

No details were included or presented asking for the hydrant fund to be alternatively used to repair the LAFD fire vehicles, which would escalate to a total of 50% of the department fire engines, which were unable to be used in the Pacific Palisade fires.   

2024-25Proposed_Budget.pdf  "The April 2024 proposed budget for the LAFD, by Mayor Bass,  was a decrease of $23 million.  By May the City Council had changed it to a $17.6 million cut.  Would the $1.3 million transferred out of the  L.A. Fire Hydrant Installation Fund to the City's Reserve Fund been enough to repair some of the 100 fire trucks inoperable in January 2025?

Dr. Pat Soon-Shiong on X: "Our hearts go out to those who have lost their homes and are seeking shelter. Fires in LA are sadly no surprise, yet the Mayor cut LA Fire Department’s budget by $23M. And reports of empty fire hydrants raise serious questions. Competence matters… Follow @latimes for live" / X


April 29th Item 10 of the City Council Meeting Agenda:  Regular City Council - 4/29/25

Passed as a part of a group vote (Items 4, 5, 6, 7, 9, 10, 13, 18, 19, 20, 26, 28, 30). All Council Members voted.

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BUDGET AND FINANCE COMMITTEE REPORT relative to a transfer of funds from the Fire Hydrant Installation and Main Replacement Fund No. 336 to the City’s Reserve Fund.

Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:

  1. INSTRUCT the Los Angeles Fire Department and the City Treasurer to process the sum of $1,351,401.00 from the Fire Hydrant Installation and Main Replacement Fund No. 336.

REQUEST the Controller to transfer all identified eligible monies to the City’s Reserve Fund

Fiscal Impact Statement: None submitted by the Office of Finance. Neither the City Administrative Officer nor the Chief Legislative Analyst has completed a financial analysis of this report.

Community Impact Statement: None submitted

Report from Budget and Finance Committee dated 4-1-25

Report from Office of Finance dated 3-06-25

Speaker Card(s)_04-01-2025


Note: "The Reserve Fund is established to ensure that funds are available for unanticipated expenditures and revenue shortfalls in the General Fund. The City’s Reserve Fund Policy sets a goal for the Reserve Fund to be at least 5% of the General Fund budget every year. On July 1, 2023, the Reserve Fund had a balance of $648.3 million, 8.2% of the General Fund budget and well above the 5% Reserve Fund Policy goal.

The Budget Stabilization Fund (BSF) was added to the City Charter in 2011. The purpose of the BSF is to set aside funds when the City exceeds revenue projections to help smooth out years when revenue is stagnant or in decline. In fiscal year 2023, the BSF grew slightly to $195.8 million."


 Edit: Caption added to image.

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