City Controller Kenneth Mejia Thursday is continuing to call on the Los Angeles Organizing Committee for the 2028 Olympic and Paralympic Games to disclose financial records and statements, alleging the entity has failed to comply with what has been required under a 2021 agreement between the committee and the city.<\/p>\n
On Wednesday afternoon, the L.A. City Controller\u2019s Office announced it had submitted a data request to LA28 for financial records and statements that are \u201cowed\u201d to the city. Mejia said that as the city\u2019s accountant, auditor and paymaster, the controller has a responsibility to protect city taxpayers from the impact of the LA28 Olympic Games.<\/p>\n
Representatives for LA28 did not respond to a request for comment.<\/p>\n
Under a 2017 \u201cHost City Contract,\u201d Los Angeles taxpayers are exposed to potentially unlimited financial obligations, according to Mejia. He argues that taxpayers deserve full transparency from LA28 related to all spending and revenue incurred in the process of planning and executing for the 2028 Games.<\/p>\n
\u201cWe all want a successful 2028 Olympic Games, but its success cannot be at the cost of transparency and accountability to LA taxpayers,\u201d Mejia said in a statement.<\/p>\n
\u201cAny event of this size and cost requires rigorous financial scrutiny, and I intend to use my full authority under the City Charter to open up LA28\u2019s books. The Controller\u2019s Office looks forward to LA28\u2019s timely cooperation with our data request and we look forward to working with LA28 as a collaborative partner,\u201d Mejia added.<\/p>\n
A subsequent agreement between LA28 and the city, known as the 2021 Games Agreement, further established nine subsections that detail information LA28 must disclose annually. The Controller\u2019s Office has determined that LA28 is only in compliance with two of those subsections, while six are incomplete and one is unknown.<\/p>\n
The missing information includes comparisons of financial forecasts vs. actuals, bank statements, schedules and budgets for venues, the identity of contractors and the values and purpose of contracts.<\/p>\n
When the city agreed to be the financial backstop for the Olympics in 2017, the budget was set at $5.306 billion. Since then, it has grown to $7.263 billion, according to the Controller\u2019s Office.<\/p>\n
Mejia noted that each time LA28\u2019s expenses have increased, the organization\u2019s projected revenues have similarly increased by the exact same amount. He argues that it is essential for LA28 to disclose all contractually required information so that L.A. taxpayers understand the scope of the financial risk they are taking.<\/p>\n
Earlier this month, the Los Angeles City Council approved the so-called Enhanced City Resources Master Agreement with LA28. The agreement outlines how the city would be reimbursed for specific services \u2014 that exceed a normal day \u2014 provided within the city limits for the 2028 Games, such as sanitation, security and other things.<\/p>\n
Under the agreement, if the 2028 Games is financially unsuccessful beyond a $600 million deficit, the city is guaranteed to cover $270 million. Following that, the state is obligated to cover the next $270 million in deficit. However, beyond that, the city has unlimited liability.<\/p>\n
LA28 has a two-part contingency fund of about $600 million, of which $330 million is reserved to meet any internal financial shortfall in its operations and the remaining $220 million are available in cash to cover an organizing committee deficit.<\/p>\n
The City Council had considered six amendments to the ECRMA, but ultimately advanced one recommendation to enshrine that an audit of LA28 finances would occur \u2014 but only after the Games had concluded.<\/p>\n
City Councilwoman Nithya Raman, who is challenging Mayor Karen Bass in the Nov. 3 election, had submitted a proposal to change the terms of the ECRMA but her ask was sent back to committee for further discussion. Raman attempted to obligate that LA28 use any available surplus of revenue over expenses at the end of the 2028 Games to cover city expenses related to the event.<\/p>\n
Additionally, the city still needs to work out Venue Service Agreements, which will come later based on the operational plans once completed by LA28. The venue agreements will determine what services will be provided and the dollar amount that the city would be reimbursed.<\/p>\n
The two parties have previously said they plan to finalize venue agreements by July 2027, and cost of those services by Oct. 31 that same year.<\/p>\n
City Administrative Officer Matt Szabo previously said that recent reports from LA28 indicated they are meeting target sponsorship and other revenues goals.<\/p>\n
\u201cThis is a multifaceted, complicated agreement that is dependent upon other agreements that have been made,\u201d Szabo, the lead negotiator for the city, previously said. \u201cIt is necessary that we keep in mind that we are in some way confined to prior agreements that were made as a condition of agreeing to host the games that include inherent risk.<\/p>\n
\u201cThis is not an agreement that is intended, or even has the capability of eliminating risk that the city has agreed to take on,\u201d Szabo added.<\/p>\n","protected":false},"excerpt":{"rendered":"City Controller Kenneth Mejia Thursday is continuing to call on the Los Angeles Organizing Committee for the 2028…\n","protected":false},"author":2,"featured_media":445946,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[1409,35459,1279,21998,48,52,51,27729,47,50,49,6247,176686],"class_list":["post-445945","post","type-post","status-publish","format-standard","has-post-thumbnail","category-los-angeles","tag-city","tag-controller","tag-data","tag-financial","tag-la","tag-la-headlines","tag-la-news","tag-la28","tag-los-angeles","tag-los-angeles-headlines","tag-los-angeles-news","tag-request","tag-submits"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/445945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=445945"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/445945\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/445946"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=445945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=445945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=445945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}