As with a traditional bank, the City of Los Angeles will collect and store revenue in bank accounts as deposits and continue its regular activities. By bringing merchant services in-house, the city can manage them at a lower cost than commercial banks. After building up its reserve at the start, the public bank will not need to use tax dollars to fund its operations. Instead, it will make loans that are backed by city deposits, which will be properly insured and guaranteed, so they are not at risk. This approach will ensure that the public bank is self-sustaining and able to operate without jeopardizing taxpayer funds.