Like any bank that holds public funds, the City of Los Angeles will continue collecting tax revenue and storing it in bank accounts as deposits. The public bank would manage some of these accounts directly, helping the city reduce its reliance on commercial banks. By bringing services like credit card processing and merchant accounts in-house, the city can cut costs and improve oversight.

While the bank will need an initial reserve to get started, it will not rely on ongoing tax dollars to operate. Instead, it will become self-sustaining by making loans backed by city deposits. These deposits will remain insured and protected, with safeguards in place to avoid risk to public funds. The goal is to create a stable, transparent institution that uses existing resources more efficiently, without putting taxpayer money on the line.