The city of Los Angeles could be short hundreds of millions of dollars when it starts its next fiscal year in July, according to a financial report presented to the Los Angeles City Council Wednesday.
There is a $242 million shortfall heading into the fiscal year 2014-15, according to the city's top budget official. There was no immediate comment from Mayor Eric Garcetti's office on the financial update. The L.A. City Council accepted the report without comment.
As for the fiscal year that ends on June 30, the city is facing a $21 million deficit. That shortfall is due, in part, to the Department of Water and Power's new billing system, which has led to incorrect bills and lost revenue. DWP bills include fees for trash pickup and sewer systems -- fees that are paid directly to the city of Los Angeles.
The deficit is also the result of financing for the LAPD's in-car video system. According to the financial status report, the deficit could increase another $3.22 million if the city tries to increase the ranks of the LAPD to 10,000 officers.
The mayor will release his budget proposal some time in April.