Sec. 436. 

Except as herein specifically permitted, the City of Los Angeles, its officers, employees, agencies and instrumentalities shall be prohibited both directly and indirectly from appropriating funds, issuing bonds, lending credit, diverting funds received or to be received under existing grants, levying taxes or assessments, incurring expenses, making or undertaking any capital expenditures, or entering into any agreements in aid or in furtherance of the promotion of the 1984 Summer Olympic Games unless the direct and indirect costs to be incurred (or incurred prior to the adoption of this section but after selection of the City of Los Angeles by the International Olympics Committee as the host city of the 1984 Summer Olympic Games) by the City of Los Angeles, its officers, employees, agencies and instrumentalities in connection therewith do not exceed the direct receipts received or to be received no later than June 30, 1985 by the City in connection with said 1984 Olympic Games. Notwithstanding the foregoing: (a)  the City of Los Angeles shall not be prohibited from enacting admissions, ticket, parking and similar attendance connected taxes on Olympic Game events and/or increasing the Transient Occupancy (Bed) Tax rate for the purpose of raising funds to be used in connection with the promoting, staging, hosting or conducting of said 1984 Olympic Games; and  (b)  the City of Los Angeles may appropriate for the promotion of the 1984 Summer Olympic Games from projected revenues the sum of up to Five Million Dollars.

“Direct receipts received,” as used herein, shall include projected revenues which are realized to the extent that prior appropriations have not been made on the basis thereof.

“Direct receipts to be received,” as used herein, means receipts which the City is assured of by firm and binding written contractual commitments from financially responsible private entities or by firm and binding written commitments from other governmental entities or agencies or instrumentalities, requiring payment in full to the City on or before June 30, 1985.

“Financially responsible private entities”, as used herein, means entities having a net worth of not less than four times the amount of each such entity’s commitment to the City.

“Net worth”, as used herein, means assets less liabilities, at the time of making such commitment, with “net worth”, “assets”, and “liabilities” being construed and further defined in accordance with generally accepted accounting principles. To establish net worth for purposes of qualifying as a financially responsible private entity each such entity must provide a current financial statement certified as correct in accordance with generally accepted accounting principles by a Certified Public Accountant licensed by the State of California.

“Direct and indirect costs”, as used herein, do not include costs of items such as incidental added wear and tear on public thoroughfares and buildings or incidental services performed by City employees which are part of their normal duties, but do include all other costs incurred in the use of City personnel or equipment to perform services in aid or in furtherance of said 1984 Olympic Games.

“Promotion”, as used herein, means hosting, promoting, staging, conducting or financing of the 1984 Summer Olympic Games, including the providing of any services, facilities or equipment in connection with such Games.

“Projected revenues”, as used herein, means projected receipts from taxes enacted on Olympic events, and projected receipts from any increase in the Transient Occupancy Bed Tax rate for purposes of promoting such Games. Projections of revenue made under this section shall be subject to approval by the City Council taking into consideration, in the exercise of reasonable judgment, periodic reports relating to such projections which shall be submitted by the City Administrative Officer and any other relevant information from any reliable source.

The Council may, consistent with this section, establish such procedures and methods as are considered necessary to implement the provisions thereof.

This section shall be deemed to have been repealed on January 1, 1986; provided, however, that its provisions shall continue to be in effect and applicable to any action taken or funds expended prior to that date with regard to the 1984 Summer Olympic Games.  (Sec. repealed, 1965; Added, 1978.)