TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: VANIAH DE ROJAS, ASSISTANT CITY MANAGER
DATE: JUNE 24, 2025
SUBJECT: ADOPTION OF THE PROPOSED BUDGET FOR THE 2025-2026 FISCAL YEAR
EXECUTIVE SUMMARY
The City Council will hold a public
the Fiscal Year (FY) 2025-2026
additions and changes as specifie
Exhibit A of the Resolution.
• l l iL _I _G •
That the City Council:
d
hearing and, after concluding the hearing, adopt
Annual Budget, GANN Limit, and personnel
in the attached Resolution No. 25-8302 and
Conduct a Public Hearing considering the adoption of the City's Fiscal Year 2025-2026 Annual Budget and Appropriations Limit (GANN Limit); and,
2. Adopt Resolution No. 25-8302, adopting the Fiscal Year 2025-2026 Budget and Annual Appropriations Limit (GANN Limit).
BACKGROUND
The Charter of the City of Downey requires adoption of the annual budget on or before June 30 of each fiscal year. In accordance with the annual budget cycle, the City's budget process began in in the beginning of the calendar year with the annual City Council goals - setting workshop. In keeping with the City Council five -overarching priorities and fiscal year budget goals, the process was continued with the development of the budget through budget meetings between department heads and executive leadership, City Council Budget Subcommittee, City Council Budget Workshop, and publishing of public notice of a hearing to adopt the budget for the upcoming fiscal year. The City Council Goal Setting Workshop was held on February 13, 2025, and provided valuable input to inform priorities for the upcoming budget preparation along with a review and status update of the Downey Forward - 2030 Strategic Plan.
The City conducted a budget study session on June 3, 2025. During the study session, the overall Citywide budget, General Fund budget, and the addition of three full-time positions and the reclassification of seven positions were discussed. The three new
RESOLUTION ADOPTING 2025-2026 ANNUAL BUDGET
JUNE 24, 2025
PAGE 2
positions are funded by Measure D. Additionally, each department presented details about their budget, their accomplishments, and their upcoming fiscal year's goals.
ANALYSIS
The total proposed annual operating budget is $325,326,883 and includes the cost of personnel, operations, materials, supplies, capital equipment, capital improvement projects, and transfers to other funds. The proposed General Fund portion of the budget is $116,079,541 in operating expenditures and based upon estimated General Fund revenues of $116,224,088. The City's basic services, including police, fire, public works, parks and recreation, library services, community development, and administrative services (such as executive leadership, human resources, and financial services), are all funded from the General Fund.
The City Council's five strategic priorities and the Downey Forward — 2030 Strategic Plan were integral in the development of the annual budget goals and objectives. These goals and objectives became the foundation for the budgetary proposals. The attached budget transmittal letter provides a more detailed overview of the proposed FY 2025-2026 budget.
Consistent with the priorities of the City Council and/or operating needs of the City a number of new positions and position changes have been included within the proposed budget. The specifics of those personnel changes are listed within the attached resolution. The attached resolution also contains the GANN limit information required to adopt the City's annual budget.
Economic factors that influenced the preparation of this year's budget Economic conditions for FY 2025-2026 reflect modest national growth tempered by persistent inflation, high interest rates, and reduced consumer confidence. For Downey, these factors are impacting housing turnover, limiting growth in property tax revenue, while elevated borrowing costs continue to slow new development. The City's unemployment rate has slightly increased to 5.2%, reflecting regional labor market pressures. Sales tax growth, while outperforming county and state averages, faces headwinds from cautious consumer spending and potential federal tariff impacts.
Additionally, California's ongoing budget deficit may reduce state funding for transportation, housing, and public safety programs. In response, Downey has adopted a fiscally conservative budget, emphasizing economic development, reserve protection, and diversification of revenue to navigate these challenges.
The proposed budget
The City of Downey proposed FY 2025-2026 budget is structurally balanced for operations. The revenues and expenditures for all other services for which the City receives restricted use funding, as well as for the City's utility operations, are also included in the proposed budget document.
RESOLUTION ADOPTING 2025-2026 ANNUAL BUDGET
JUNE 24, 2025
PAGE 3
The summary of estimated Revenues, Transfers, and Appropriations for all City fund is:
The General Fund Reserve is projected to be $34,402,402 at the conclusion of FY 2025-2026.
The attached Resolution adopts the City's proposed annual budget and sets the City's annual appropriations limit (GANN Limit) as required by the City Charter and by State law.
AB 2561: Local Public Employees - Vacant Positions
Effective January 1, 2025, AB 2561 amended the Meyers-Milias-Brown Act (`MMBA') by adding Government Code Section 3502.3, which creates a new obligation for public agencies to hold a public hearing and address the status of their job vacancies.
Additionally, if the number of vacancies exceeds 20% of the total number of authorized full-time positions in a particular bargaining unit, the public agency is required to provide additional information as part of the public presentation. Currently, none of the City's bargaining units have vacancy rates exceeding 20%, so this additional reporting is not required for this public hearing.
Downey Public Safety Auxiliary Association 55 8 12.70%
Downey Fire Management Association 4 0 0.00%
DCEA-Maintenance Association 43 10 18.87%
Downey Police ManagementAssociation
r0
0,00%
Totals
462
RESOLUTION ADOPTING 2025-2026 ANNUAL BUDGET
JUNE 24, 2025
PAGE 4
AB 2561 also requires that during the hearing, the agency must identify any necessary changes to policies, procedures, and recruitment activities that may lead to hiring obstacles. Staff have not identified any changes to policies, procedures, or recruitment activities that may present obstacles in the hiring process. However, the Human Resources Office has proactively made enhancements of its recruitment efforts.
In December 2024, the Human Resources Office launched NEOGOV ATTRACT, which is a candidate relationship management system. This is helping to improve the quality of the applicant pool for critical roles and significantly boosting recruitment efficiency by providing the City access to a network of 2.7 million job seekers. Additionally, the office has increased recruitment advertisement in several government job -related platform's specializing in specific professions (i.e., utilities, engineering, etc.)
CITY COUNCIL PRIORITIES
Fiscal Responsibility
Public Engagement
FISCAL IMPACT
Approval of the adoption of today's public hearing and resolution will satisfy Article 12, Section 1204 of the City Charter of the City of Downey which requires that on or before June 30, the City Council shall adopt the budget by majority vote.
ATTACHMENTS
Attachment A — City Manager's Transmittal Letter
Attachment B — Resolution No. 25-8302, adopting the FY 2025-2026 Budget and Annual Appropriations Limit.
June 3, 2025
Dear Mayor Sosa and Members of the City Council:
In accordance with the City Charter, I'm pleased to present a balanced Annual Operating Budget of $325 million and the Capital Improvement Program for Fiscal Year (FY) 2025-2026 for City Council's consideration
Roger Bradley This budget reflects the City's commitment to sound fiscal management, while City Manager managing economic uncertainties at both the state and national level. Despite several economic headwinds, including inflationary pressures and potential reductions in State and federal funding, the budget remains structurally balanced while continuing to support the high -quality services our community expects and deserves.
I am proud to acknowledge the exceptional dedication of our staff, whose thoughtful and tireless efforts have produced a budget that upholds the City's high standards of service and reflects a steadfast commitment to enhancing the quality of life for all who live, work, and visit Downey.
This Annual Operating Budget and Capital Improvement Program (CIP) provide a funding guide which includes an operating plan, a five-year capital improvement program, and funding for debt service and other obligations. It reflects the City's commitment to continued fiscal responsibility, adaptability in a changing economic environment, and commitment to providing high -quality services. Revenues are conservatively estimated, resources are optimized, reserves are preserved, and expenditures are strategically aligned with the City Council's priorities —all while supporting the long-term financial sustainability of the City.
The City of Downey enters FY 2025-2026 with cautious optimism amid a complex economic environment.
While local revenues, particularly sales tax and property tax, show modest growth, broader fiscal conditions —including California's multi -billion -dollar budget shortfall and continued federal monetary tightening —pose challenges. State funding for local programs may be constrained, and elevated interest rates continue to impact consumer spending and private investment. Inflationary pressures, housing affordability, and labor market shifts also affect local economic stability. In response, the City has adopted a conservative fiscal approach, emphasizing reserve preservation, strategic investments, and economic development to sustain essential services and long-term financial resilience.
The General Fund Budget for FY 2025-2026 reflects prudent financial stewardship with a balanced budget of $116 million and funding for major efforts and services. Further, the budget establishes a framework to meet the needs of the community, while also seeking ways to fund and enhance programs and services under the guidance of the City Council's five overarching priorities of:
o Fiscal Responsibility
o Economic Vibrancy
City of Downey I FY 2025-2026 Proposed Annual Operating Budget
o Efficiency and Adaptability
o Quality of Life, Safety, and Infrastructure
o Public Engagement
The City remains committed to fostering engagement, supporting development projects that reflect community aesthetics, and maintaining educational and enforcement initiatives. The strategic initiatives outlined in this plan aim to ensure continued growth and sustainability for Downey.
Several objectives have been identified for each of the above priorities, which were discussed with the City Council at its Strategic Planning and Goal Setting Workshop this spring. These objectives are discussed in the immediate section below. The remainder of this budget message will provide a greater overview of the City's financial program for the next year and, the major priorities and challenges that shaped the budget.
CITY COUNCIL PRIORITIES, GOALS, AND PERFORMANCE INDICATORS 12t" consecutive year - GFOA and CSMFO Budget Awards
Annual Comprehensive Annual Report (ACFR) - Clear Audit for FY 23-24 Financial Reporting, Certificate of Achievement from GFOA for 25 consecutive years Measure D - Provided educational materials to inform the public, resulting in the passage and establishment of a new revenue source for public safety services Over $10 Million in Grants Secured - from various agencies including Cal Recycle, HUD, and FEMA Sprouts - Opened in December 2024, bringing fresh, healthy food options and enhancing local grocery offerings
Support Downtown Improvements & Vibrancy - 10 Year Doodle-icious Anniversary, installed a New Rotary Clock, completed Alley Improvement Project, and purchased Meridian Barriers Economic Development Office - Additional support to small businesses by assisting with resources and navigating the City process
Shake Shack - Located at the corner of Firestone Blvd. and Downey Ave, opened its doors in December 2024
Silverlake Ramen - Located on Firestone Blvd, opened its doors last summer, offering diverse and flavorful dining options to Downey residents and visitors Back 20 - Executed the 7th Amendment to the ground lease to advance plans for mixed -use development at the site
Rancho Los Amigos South Campus - Entered into an Exclusive Negotiating Agreement for the development of the Rancho Los Amigos South Campus
City of Downey I FY 2025-2026 Proposed Annual Operating Budget 12
"`rfficie{"t"t.. iJ G's
New Digital Budget Book - Published for Fiscal Year 2024-2025, enhancing public accessibility, transparency, and user experience
Downey Forward - 2030 Strategic Plan - Initiated year one of the 5-year Strategic Plan, including the development of a webpage, brochure, and quarterly status updates Accela Citizen Portal - Enhanced capabilities for customer electronic submittals of plans, ability to check status online, and online payment submittal
Downey App — A total of 2,269 Service Requests Addressed since July 2024 and began the transition to a new robust City request app
Business Day Plan Review - Turnaround times reduced, helping the public obtain permits faster and expediate their projects
�.n
.� c.Fb�,r + ,�'` �.7 i l� r r�(' � �S ,� r �;�'ty &
Miles Paved - Since July 2024: 17 Miles of Residential Streets 15 Miles of Arterial Streets 13.5 Miles of Alleys have been paved
Completed CIP Projects - 11 projects completed with a total Investment of $7.8 Million in City assets, including BJR HVAC Improvements ( Downey Ave. Alley Beautification I Alleys North of Foster Rd. and Lakewood Blvd. ( Traffic Signal Upgrades I Civic Center Painting Project 2nd Dog Park at Golden Park - Completed preliminary design, with construction drawings and work to be completed by December 2025
Homelessness Solutions Office - Hired a manager to enhance homeless services and outreach efforts Parks & Recreation - Parks and Recreation hosted 34 events last year, engaging thousands and fostering community unity
Pulse of Life - Launched FY 2024-2025, allowing victims to notify PD when they are in danger, providing an additional means of safety and response
Downey Community Connect - Platform launched to enhance Fire Department response strategies and enabling more efficient and appropriate emergency services Regional Task Force - Deployed Fire Department personnel as part of Regional Task Force-2 in response to the wildfires in Los Angeles County.
Additional Police Officers and Support Staff - Completed the Police Department Assessment adding 17 total positions utilizing Measure D
Rehabilitation Single -Family Residences - Twenty-one residences are underway, providing support to low- and moderate -income households
Downey Library - Managed the 4th Annual Beyond the Book event, bringing together over 30 local and Los Angeles -wide organizations and vendors to celebrate the cultural spirit of Southeast Los Angeles and promote creativity and community engagement
City of STEM - Declared the Official Science Festival of Los Angeles County by the County Board of Supervisors
Space Shuttle Inspiration Move - Successfully coordinated the move of the Space Shuttle to its temporary site for restoration, with a well -executed event covering the relocation PIO Office- Revamped social media strategy to align with agency goals and community preferences, boosting engagement and follower growth. Growth increases were Instagram - 8.4% Facebook - 3.0% Double Decker Bus Tour - Provided the community a unique experience and view of Downey's historical sites and a Christmas lights tour
City of Downey I FY 2025-2026 Proposed Annual Operating Budget 13
Keep Downey Beautiful - Five events hosted since July 2024, with five more scheduled through the end of the Fiscal Year, promoting community pride and engagement Aligned with the City Council's five key priorities, the City has established a range of performance indicators to measure departmental efficiency and effectiveness. These indicators, included in each departmental section, present annual targets alongside actual results and projections for comparison.
Economic conditions for FY 2025-2026 reflect modest national growth tempered by persistent inflation, high interest rates, and reduced consumer confidence. For Downey, these factors are impacting housing turnover, limiting growth in property tax revenue, while elevated borrowing costs continue to slow new development. The City's unemployment rate has slightly increased to 5.2%, reflecting regional labor market pressures. Sales tax growth, while outperforming county and state averages, faces headwinds from cautious consumer spending and potential federal tariff impacts. Additionally, California's ongoing budget deficit may reduce state funding for transportation, housing, and public safety programs. In response, Downey has adopted a fiscally conservative approach, emphasizing economic development, reserve protection, and diversification of revenue to navigate these challenges.
City of Downey I FY 2025-2026 Proposed Annual Operating Budget 14
hifousing
The housing market in Downey continues to reflect broader regional trends influenced by elevated interest rates and affordability challenges. While median home prices have remained resilient with a 3% increase over last year ($811,167 — March 2024 and $916,643 — March 2025), sales volumes have declined, leading to reduced turnover in homeownership. This slowdown affects the City's capacity to capture increased property tax revenues, as properties are reassessed at market value only upon a change in ownership under Proposition 13. Nevertheless, existing properties still undergo annual inflationary adjustments, capped at two percent, contributing to modest growth in property tax revenues.
In response to housing demand, the City has actively pursued development opportunities. As of March 2025, several residential projects are underway, including the development of 45 townhomes and condos, which have been successfully sold. Additionally, the City has streamlined its permitting processes by transitioning to a fully electronic plan check review system as of January 1, 2025, enhancing efficiency and reducing turnaround times for developers.
Looking ahead, the City remains committed to facilitating housing development to meet the needs of its residents. Efforts include the implementation of the 2021-2029 Housing Element, which outlines strategies to accommodate future housing growth and affordability. By leveraging technological advancements and policy initiatives, Downey aims to support sustainable housing development that aligns with the community's long-term goals.
°gin"aemployment akt"ad Consumer onfiL'"`�enc
As of March 2025, the City of Downey reported an unemployment rate of 5.2%, a slight increase from
4.9% in March 2024. According to data from the California Employment Development Department, Downey's labor force comprises approximately 57,700 individuals, of which 54,700 are employed and 3,000 are unemployed. This uptick in unemployment mirrors trends seen across Los Angeles County, which also recorded a 5.9% unemployment rate in March 2025, signaling ongoing economic uncertainty in the region. In comparison, the State of
California's seasonally adjusted unemployment
rate stood at 5.3% in March 2025, up from 5.1 %
in March 2024. This marks a 0.2 percentage point
increase over the year.
The proximity of Downey's unemployment rate to
the state average indicates that the City is
experiencing similar labor market challenges as
the broader California economy. Factors
contributing to these trends include ongoing
economic uncertainties and sector -specific
employment shifts.
UNEMPLOYMENT RATES
Although unemployment remains near pre -pandemic levels, consumer confidence continues to be affected by persistent inflation and elevated costs for everyday necessities such as food, fuel, and housing. These conditions have led many households —particularly those on fixed incomes —to adopt a more cautious approach to spending, which could negatively impact local sales tax revenues and the broader retail economy in Downey.
City of Downey ( FY 2025-2026 Proposed Annual Operating Budget 15
To proactively address these challenges, the FY 2025-2026 budget reflects a strategic investment in economic development initiatives. These efforts are aimed at supporting business retention, expanding the City's economic base, and fostering workforce resilience to help local businesses and residents thrive amid a shifting economic landscape.
The City's budget is developed within the following framework and timeline:
1) Focusing on the long-term fiscal health of the City. 2) Building a prudent reserve;
3) Developing long-term strategies to reduce unfunded liabilities; 4) Controlling labor costs while minimizing impacts to staff; 5) Allocating one-time revenue for one-time expenses;
6) Requiring enterprise and grant funds to balance revenues with expenses and new programs to pay for themselves; and
7) Any new expenditure requiring either additional revenue or expenditure reductions.
AN - FEBMAR-AFAR
FAY-JUNtiN
JU NE- U SEP-DEC
tio
1 n s cl tc. rgt ktA1l n €,t
sP .. ky"Sh tife"'tt f.:'
r i,.dgeI:A,ia,, floc{
f`T t.oau t2 t iv.. ka,c ii "Vio,"Roca nqq mn'b..
€Je= ,tkrfl nVt.£:
FFrid ttaa-h.
The Council participates in
city Management
City Council and the
All CUY council changes Emailed ntonthtyrepos
a Coals: and Pnontes.
Teamuses the
public, review the
to the preliminary budget as wait as Online, on
Retreat di5Cl8S9itlg
Councils key polio y
recommended bud e
g
a re incorporated into tare
demand reports provide
JRgOing pru'grams, newL1apYa
issues todicerrnlnit
to see how each
final budget document
CR5er12 Daeel4t3
concerns and marquee
stag€obiact"es to
Gleparint-11 has
angle public meeting is and Division Managers
inivauves
achieve its tong range
Fnoarpo ued City
held, clay, co—ol
information regarding
straCegegoafls within
Cauncil's tong -term
approve the badge[
their actual expenditure
the upcoming budget
goals and objectives
hnrvie June cloth per City
amounts, along witthelr
document
into g aBud 8n
Charier cudgel s
approved bud of
dr9rntsared to dhe puti as 9��
throughaBudcyel
va[he CYt' tiod.and
City's we
Workshop.
social media pBatfarms:
Basisof t 'ta d.,r3`sv,��i ;j a' aT,.ttn
The budgeting (accounting and reporting) policies of the City conform to Generally Accepted Accounting Principles (GAAP) applicable to state and local governments. These principles include standards prescribed by the Governmental Accounting Standards Board (GASB), which includes the statements and interpretations of the National Council on Governmental Accounting and the principles prescribed by the American Institute of Certified Public Accountants in the publication entitled Audits of State and Local Governments. The budget differs from the annual financial reports issued by the City in two ways: The budget does not show depreciation expense, and it does not show the value of employee leave balances, in keeping with traditional municipal budgetary conventions. These expenses are, however, reported in the Annual Comprehensive Financial Report (ACFR).
City of Downey ( FY 2025-2026 Proposed Annual Operating Budget 16
Bsaf(q'et �,,; orits'"snl s
Supplemental appropriations can be approved through minute action or a resolution approved by a simple majority vote of the Council. With the exception of transfers between personnel costs and operations/services costs, the City Manager is authorized to transfer amounts between or within departments or programs within any fund. The Council must approve any transfer which alters the total appropriations on any fund.
Departments monitor reports that are issued on the 15th working day of each month for the preceding month to ensure expenditures are properly charged and to ensure there are appropriate funds for future expenditures.
At any time during the fiscal year,
Departments report to the City Manager
and Finance Director of any significant
budget variance that cannot be reconciled
with the division/department responsible for
incurring the variance. Additionally, upon
review by the department directors,
purchase orders are transmitted to the
Finance Department for verification of
budget compliance.
Ci l....io 0 vrtpy of :hA rrrzcapnF
r)s ,
rags u ur snzs-ante
rnMfilTC F Ia..cRs,t ��nYii,va
�f,}{G9�ylff tiF71'C
Budget Preaenl ation
A r rcard
C q 7 D ",
4: aldamew
The proposed overall City-wide Fiscal Year 2025-2026 Budget for all funds is $325,326,883. Overall, this budget is an increase of roughly $40,390,123 or 14.18% compared to the Adopted Fiscal Year 2024-2025 Budget. This increase is primarily due to one-time CIP projects and new expenditures related to Measures S and D.
The Fiscal Year 2025-2026 General Fund expenditure budget of $116,079,541 is funded with Fiscal Year 2025-2026 estimated revenues of $116,224,088.
Revenues and Fps"s n ections Pe hos°nnasice E,�; s a ations Overall, Fiscal Year 2025-2026 General Fund Revenue is projected to be $116,224,088 which is 8% percent lower than the Fiscal Year 2024-2025 Adopted budget. It should be noted that in effort to enhance transparency and accounting of Measure S monies, Measure S is no longer included in the City's General Fund and is now listed under its own Measure S Operating Fund (Fund 17). Previously, Measure S had accounted for approximately 10.8% of the General Fund revenues. When accounting for the change in funds, the proposed General Fund revenue is an increase of 3.56%.
The two main revenue drivers for the City's General Fund are Property taxes, 33.43% of the City's General Fund revenue, and Sales Tax revenues, which accounts for 24.96% of the City's revenue stream.
City of Downey I FY 2025-2026 Proposed Annual Operating Budget 17
The City of Downey
anticipates continued
[DUder@L8 growth in property
tax revenue for FY 2025-
2020, building upon the
steady increases observed in
recent years. This growth is
primarily driven by
incremental assessed value
urUuatrnenta under
Proposition 13 and limited
property turnover.
M
FY 2025-2026
Proposed General FLUid Estimated Revenues
6%,, VIFF7' -ES
OOVVDey'S property L8X
[8V8DUe is influenced by
several key f@CtOnS. []Dde[USE OF MONEY& PROPE MY
PPUpUSiUOD 13. @SSeSSed 2% Of HER REVENUE
property V8|UeS may only
WTERFUND REVENUE
increase byuptO2%annually
unless 8change iDownership
OCCUrS. With S|Ovver turnover '
in the housing nnorket, revenue growth remains steady but moderate. Hovvever, home value appreciation and ongoing residential and commercial development support an expanding tax base.
At the state level, California experienced a 7.1 % increase in property tax revenue in 2024, adding $6.3 billion statewide. Though Downey was unaffected by the early 2025 wildfires that impacted parts of Los Angeles County, these events highlight the volatility in property tax revenue due to natural disasters. /# the federal |8Ve|, [iSiD0 interest rates continue to iOf|UeOC8 Rf8| eS1@t8 activity, potentially dampening turnover and affecting local assessments.
Despite these challenges, Downey projects stable property tax revenue growth in FY 2025-2026. The City will CODUOUe to monitor economic COOditiOOS and adjust fiscal strategies LO HOSU[H long-term financial resilience
Sales Tax
AS of the fourth quarter Cf2024. the City of Downey experienced o 5.0% increase in actual sales tax revenue CO0p@rHd to the S8m8 period in 2023. excluding reporting 8nOm@|i8S. while LA County and the State experienced -2.8%and -1.1%,respectively This growth indicates continued economic resilience in the f@C8 Of broader fiscal challenges. Key sectors contributing to this growth include new nnOb]r vehicle sales, quick -service restaurants, and general consumer goode, all of which posted moderate gains.
HVvvev8r, fuel and service station revenues declined by 10.2%. reflecting statewide fuel price reductions and changing consumer behaviors.
Separately, it's important kznote that Dovvnevasales tax rate increased from 10.0096Uo 1O.5O96effective Anh| 1, 2025, following the passage of Measure D and the Counh/a Measure A. These measures, approved by voters in NOvember2O24' both added 8 0.25% |OC@| S@|eS tax dedicated primarily to public safety services (Measure D) and Homeless Service (Measure A). Looking ahead, the City anticipates City of Downey I FY 2025-2026 Proposed Annual Operating Budget 18
modest sales tax revenue growth for FY 2025-2026, tempered by national economic uncertainties, including potential federal tariff impacts and cautious consumer spending. Continued investment in Downey's commercial corridors and proactive engagement with the business community will be essential to sustaining momentum and ensuring long-term revenue stability.
Proposed General Fund expenditures are $116,079,541, which is a 7% decrease over last year's General Fund adopted budget. However, as noted above, Measure S was previously included as part of General Fund Expenditures. When accounting for this change to the new Measure S expenditure funds (Fund 17, 33 and 35), and comparing like for like, the proposed General Fund expenditures is a 4% increase over the previous budget.
In addition to the Goals mentioned earlier under "City Council Priorities, Goals, and Performance Indicators", the budget proposes continued funding for several significant services and projects aimed at enhancing infrastructure, public safety, and community engagement.
The City of Downey's proposed Capital Improvement Program for FY 2025-2026 encompasses a budget of $102,241,689
targeting key areas such as streets, public facilities, water improvements, and traffic safety. This investment aims to enhance infrastructure, improve quality of life, and bolster economic impact.
Capital improvements are required to maintain the City's physical infrastructure. A percentage breakdown can be seen below. Capital improvement projects are funded by Measure S, Proposition C, Measure R, Measure M, 2017 Road
Maintenance Rehabilitation Act (SB 1), and other revenues sources.
Key Budget Areas:
1. Roads
o Street Improvements: $30.8M allocated for comprehensive projects including the Firestone Boulevard and Lakewood Boulevard Intersection Improvement. o Traffic & Safety: $4.6M for upgrades such as the Guatemala Avenue at Suva Street Traffic Signal Improvements
2. Buildings:
o Public Facilities: $23AM dedicated to upgrades like the Columbia Memorial Space Center Carpet Replacement and HVAC Control System Replacement.
City of Downey I FY 2025-2026 Proposed Annual Operating Budget 19
3.Water and Gevvur
o Water Improvements: $18.9M
focused onprojects |ikethe
Furman Park Recycled Water
Main Extension.
o Sevver& Storm Drain: $24.5yN
for sewer
Servoice Costs
As part of the FY 2025-2028 Proposed Budgeted Personnel allocation of470. the City of Downey is recommending the addition of two full-time Parking Enforcement Officers and a Regional Fire CVnnnouniCaUVnG [)p8rok]r to enhance CVnonnunitv 8afetv, improve parking COrnp|ianC8. and support quality -of -life initiatives Citywide. These positions will be funded through W1eouuru O. the City'uvoter- approved sales tax meaauna, and are expected to be partially offset by increased revenue from parking citation -related fees. This strategic investment aligns with the City'u continued commitment to responsive municipal services and fiscal naaponaibi|itv, ensuring that operational costs are auatoinob|yauppurted by corresponding revenue sources.
Looking forward, CQ|PERS pension liabilities and rising healthcare premiums continue to place pressure on employee -related costs. While revenue growth has been supported bveconomic development, it remains closely matched by escalating personnel costs. Consequently, the City anticipates only modest compensation adjustments in FY 2025-2026, balancing the need to retain talent with fiscal prudence.
Over the coming y88rS, strategic vvOrhfOrC8 planning will be QhtiC@| to 8nSUhn0 that staffing levels align with community needs and OSC@| realities. The City is committed to maintaining its reputation for high - quality service delivery bysupporting and investing in its workforce while responsibly managing long-term obligations.
City ofDowney | FY2U25'2O2GProposed Annual Operating Budget | 10
r
The City of Downey continues to face significant fiscal pressures from multiple fronts. These challenges, while not unique to Downey, require tailored strategies to ensure long-term financial health and continued service delivery.
Retirement Costs The Citycontracts with the California Public Employees dilR,
retirement System (CaIPERS), to provide retirement benefits to full-time CAPE RS employees. On January 1, 2013, the State adopted the California Public Employee's Pension Reform Act (PEPRA) in an effort to control rising pension costs. Members who became CaIPERS members on or after January 1, 2013 or have been separated from service for longer than six months, are considered "new" members", and are required to pay half of the normal cost towards their pension contribution.
In recent years, CalPERS has made several actuarial and policy changes that continue to increase employer retirement costs. These changes include new amortization schedules and smoothing methodologies, adjustments to demographic and mortality assumptions, and a reduction in the assumed investment return (discount rate). Specifically related to CaIPERS investments, returns continue to fall short due to fluctuations in the market and CalPERS overall investment strategy that underperForms when compared to benchmarks such as the S&P 500, which can affect CalPERS ability to meet its long-term obligations.
To help mitigate long-term pension obligations, the City implemented a second -tier retirement plan in January 2012 and now enrolls all new employees under either the second -tier or PEPRA formulas.
This structural change, while effective over the long term, is a gradual solution and will take 20 to 30 years to significantly reduce the City's unfunded pension liability.
Additionally, the City took proactive steps in early 2021 to refinance a portion of its Unfunded Accrued Liability (UAL), which resulted in a projected gross savings of approximately $65 million.
Despite these reform efforts, retirement costs continue to climb. According to the June 30, 2023 actuarial valuations for FY 2025-2026, the City's required UAL contributions are estimated at $3.33 million for the Miscellaneous Plan and $7.67 million for the Safety Plan. Additionally, the City must contribute normal costs of 10.61 % and 20.75% of payroll, respectively, for these plans. The combined UAL for both plans exceeds $152 million, with a funded ratio of 80.0% (Miscellaneous) and 79.7% (Safety).
Nonetheless, retirement costs remain a significant and growing budgetary obligation. Continued monitoring, prudent financial planning, and evaluation of additional mitigation strategies will be essential to sustaining the City's fiscal health.
Health Care Premiums
Healthcare costs for CalPERS-negotiated healthcare plans have increased over the prior year as projected. While the City has not received data from CaIPERS regarding upcoming year costs, in the FY 2025-2026 Proposed Budget, the City of Downey anticipated an increase of approximately $1.2 million or 4.7% in employee healthcare premiums, which aligns with the 4-6 % increase the City has experienced in previous years. This rise is attributed to broader economic factors such as escalating medical costs, inflation in pharmaceutical pricing, and increased utilization rates. These increases will City of Downey I FY 2025-2026 Proposed Annual Operating Budget 1 11
directly impact the City's General Fund and internal service fund expenditures, as the City maintains a commitment to competitive and comprehensive employee benefits.
From an economic standpoint, health care inflation continues to outpace general inflationary growth, placing sustained pressure on municipal budgets across California. For Downey, the projected premium increases will require careful balancing within department allocations, with an emphasis on long-term cost containment strategies such as plan design adjustments, wellness initiatives, and collaborative negotiations with labor groups.
Despite these rising costs, the City's prudent fiscal planning and proactive forecasting have allowed for these increases to be accounted for in the FY 2025-2026 Proposed Budget, ensuring ongoing stability in operations and workforce support.
Minimum Klage Increases
The California state -mandated minimum wage increase to $16.50 per hour, effective January 1, 2025, presents notable budgetary challenges for the City of Downey in the FY 2025-2026 Proposed Budget.
This increase primarily impacts part-time, seasonal, and entry-level positions across multiple departments, particularly in parks and recreation, public works, and library services. The upward pressure on wages may also trigger compression issues, requiring adjustments to higher -level salaries to maintain pay equity. This mandate increases labor costs and may strain departmental budgets, potentially reducing the City's capacity to fund non -personnel services or expand programs without additional revenue. Strategic planning and targeted adjustments will be essential to maintain fiscal balance while complying with wage mandates and preserving service quality.
Inflation
Persistent inflation continues to impact the cost of goods, services, and construction projects. Bid prices for capital projects remain elevated due to increased labor and material costs, impacting project timelines and budgets. Higher fuel and utility prices have also raised operational expenditures across all departments. While inflation has not caused the cancellation of capital projects, the continual high cost may cause the City to re-evaluate the resources it has available for certain projects in the future.
The City must continue to monitor inflation trends closely and adapt financial strategies to mitigate its impacts effectively.
Stahfing Levels,
In the coming years, reaching sufficient staffing levels to meet the demands for public services that Downey has come to expect will remain a significant challenge. Labor market challenges, including issues related to compensation and benefits, will continue to hinder efforts to maintain expected service levels.
Additionally, competition for skilled workers across various sectors adds further complexity to recruitment efforts. Low staffing levels not only strain existing staff but also impede the City's ability to deliver essential services efficiently, impacting residents' quality of life and satisfaction with municipal operations.
Therefore, addressing these challenges and strategically increasing staffing levels are essential for sustaining Downey's growth and ensuring the continued provision of high -quality services to its residents.
Although this budget proposes strategic increases in staffing, the City's full-time staffing levels remain below pre -recession highs. Recruitment and retention continue to be challenges due to competitive labor City of Downey I FY 2025-2026 Proposed Annual Operating Budget 1 12
markets. Balancing the need for increased staffing with fiscal sustainability remains a priority, especially as service demands grow.
It should be noted that as part of a Police Department Operations Assessment, a total of 17 new Police Department positions were added to the budget during FY 2024-2025 to enhance policing efforts.
Additionally, as part of the FY 2025-2026 Proposed Budget, the City is adding two full-time Parking Enforcement Officers and a Regional Communications Operator to strengthen community livability, enhance property maintenance, and improve responsiveness to resident concerns. These positions are partially funded through a combination of revenue generated from code enforcement fees and the voter - approved Measure D sales tax measure. This funding strategy ensures the City can expand service capacity in a fiscally responsible manner, while directly tying new expenditures to supporting revenue sources.
During the Fiscal Year 2025-2026 Budget year, the Fire Department will be completing a Department Operations Assessment, which will help the City determine needed Fire positions to support community needs utilizing Measure D.
Investing in infrastructure remains a cornerstone of the City of Downey's long-term strategy to ensure public safety, economic resilience, and a high quality of life. The FY 2025-2026 Proposed Budget reflects this commitment by allocating over $102 million toward capital improvement projects, including street rehabilitation, water and sewer system upgrades, stormwater infrastructure, and facility improvements.
However, significant challenges remain as aging infrastructure continues to demand greater investment than available recurring revenue can support.
The City faces a growing backlog of deferred maintenance across multiple systems that require phased replacement to avoid service disruptions and regulatory compliance issues.
Compounding the issue are rising construction costs, driven by inflation in materials, labor shortages, and supply chain delays. Between 2020 and 2024, public works project costs in Southern California increased by an average of 25-30%, reducing the City's purchasing power for capital investments. Additionally, the City must compete aggressively for limited state and federal infrastructure funding while balancing General Fund pressures from increasing personnel, retirement, and health care costs.
While the FY 2025-2026 budget includes funding from Measure S, Measure D, Measure M, SB 1, and various grant sources, these are often earmarked for specific uses and cannot fully address citywide infrastructure needs. As such, the City must continue to pursue strategic planning, project prioritization, and alternative funding mechanisms, including bond financing, public -private partnerships, and phased implementation models.
To preserve public trust and fiscal stability, the City must continue investing in infrastructure in a disciplined yet proactive manner. Delaying needed projects only escalates long-term costs and risks, while timely investments safeguard essential services, attract economic development, and maintain Downey's position as a well -managed, forward -looking community.
City of Downey I FY 2025-2026 Proposed Annual Operating Budget 1 13
As part of the FY 2025-2020 Proposed Budget, the City of Downey continues to align its resources with community feedback received through the Downey Discussion campaign. Survey results n8offinned that residents place high priority on public safety, emphasizing the importance offast 911 response times, vv8||-St@ffBd PO|iC8 and Fire Departments, and the p[0Senv@dOO Of DOVvOey'S distinctive COOO[OUnitv character.
Maintaining status aaufull-service city presents ongoing fiscal oha|h*ngea, particularlyaa public safety costs —such as p8naOnne|, equipnn8nt, and retirement obligations —continue to rise. In FY2025- 3020, public safety services nopnaS8nt the largest ahonB of the General Fund, reflecting the Citv'G continued commitment to resident priorities. Balancing these 8SS8nUa| services with long-term financial sustGinobi|ity remains @ key focus, ensuring that Onvvn8y continues to meet high service expectations while responsibly managing its resources.
To ensure fiscal Gustoin8bi|itv and community
[8Si|i8DDB' the City of E)OVVDGy COOUOU8S to implement
strategic financial policies and forward -looking investments that support high -quality service delivery and SUS18iO8b|e CO[ODlUnih/ growth. Building UpOD [HC8O1 Ch8DQHS to
COnnpgnSaU0n Stru{tur8G, retirement funding. and
h82|thC8n8 COSt COntn3|S. the City r8nn8inG committed to proactive financial stewardship vvhi|8 addressing
infrastructure, housing, environmental, and economic
development needs.
In FY 2025-2026. the City is leveraging a diverse portfolio of funding sources —including K8ea8un8 8, Measure D, K8eaauna K4, SB 1, and federal infrastructure programs—toenhancepublic assets and community facilities. These investments support eSSenUG| S8nviQHS in parks, public S8fwtv. libraries, uU|iUeG. and transportation, and form the foundation for long-term fiscal and service delivery stability.
Over $38 0i||iOO is pnDg[80OO8d in the FY 2025-2028 Capital |OOpnOVH08Dt PnOg[@0 (C||P). |@[gHtiO0 projects that extend asset |if8, reduce future maintenance liabilities, and improve quality Of life for residents.
Recognizing the impact of inflation and construction cost escalation, the City has adopted a strategic approach by accelerating infrastructure projects through smart debt issuance and early -stage desi and engineering. Recent bond fUDdiOg. supported by M88SUPeS M and R, has enabled the City to COOOp|et8 over $30 0i||iOD in residential street repairs vvhi|H avoiding future COSt iOCFe8SSS and addressing deferred maintenance in a fiscally responsible manner. In addition, one-time federal funds, including American Raaoua Plan Act (ARPA)allocations, have been strategically deployed to support projects with generational benefits.
Capital and strategic planning now work in tandem. The Citv's five-year Capital Improvement Plan serves asafinancial and operationalnoadmap.tracking project costs, funding sources, and long-term maintenance obligations. It is closely integrated with long-range economic development strategies, which include key regional projects such as:
City ofDowney | FY2U25'2O26Proposed Annual Operating Budget | 14
The Rancho Los Amigos South Campus Redevelopment, supporting job growth and mixed -use development;
The expansion of the Columbia Memorial Space Center, enhancing Downey's STEM and tourism potential;
The Southeast Gateway Light Rail Station as part of the West Santa Ana Branch Transit Corridor, which will improve regional mobility and catalyze adjacent investment opportunities.
In addition to infrastructure investments, the City is actively exploring revenue diversification strategies to strengthen its financial base and reduce reliance on volatile funding sources. These include:
Modernizing fee structures for cost recovery;
Pursuing grants and legislative advocacy for recurring infrastructure and operations support; Evaluating opportunities for sustainable economic development that align with long-term land use and housing plans.
By combining disciplined financial planning with strategic infrastructure investment, the City of Downey is building a resilient and adaptable fiscal foundation. This approach ensures the City can meet today's service demands while preparing for the needs of future generations.
Expanding and Modernizing the City's Revenue Base
As part of its long-term strategy to ensure fiscal sustainability, the City of Downey is actively pursuing new and modernized revenue augmentation strategies in the FY 2025-2026 Proposed Budget and beyond. These efforts are focused on strengthening the City's financial position, expanding service capacity, and aligning revenues with increasing operational and infrastructure demands.
Fee Study and Rate Adjustments
As part of the FY 2025-2026 budget, a 3% fee adjustment has been implemented to reflect inflationary pressures and maintain alignment with the Consumer Price Index (CPI).
Water and Utility Rate Study
The City is currently conducting a water rate study to determine City rates to help ensure the City's' water fund is sustainable over the next several years. This analysis will:
• Assess long-term infrastructure investment needs for the water supply and distribution system; • Identify rate structures that promote equity and conservation; • Ensure sufficient funding for capital improvements and operational resilience; • Support the City's long-range capital planning framework.
Modernizing utility rates will be critical to funding essential water infrastructure projects identified in the Capital Improvement Plan, while eliminating any General Fund subsidy of enterprise operations. The City has not adjusted water rates in more than 10 years. With substantial inflation occurring since the City of Downey I FY 2025-2026 Proposed Annual Operating Budget 1 1
last adjustment, it is infeasible to meet long-term as well as ongoing financial obligations without updating the rates.
As economic conditions remain uncertain at the regional and national levels, the City has prioritized financial resilience through a combination of prudent reserves, revenue diversification strategies, infrastructure investment, and sustainable staffing enhancements. By aligning operational decisions with long-range capital planning and community feedback, the City ensures that its resources are used effectively and equitably to meet the evolving needs of residents and businesses.
This budget also lays the groundwork for future planning efforts, including citywide fee and utility rate studies, strategic infrastructure upgrades, and continued evaluation of additional revenue sources to ensure a balanced and stable fiscal outlook.
These actions will help Downey remain adaptable to future challenges while preserving its identity as a full -service city known for quality, responsiveness, and innovation.
I would like to extend sincere appreciation to the City Council for its ongoing leadership and vision, and to our dedicated City staff for their professionalism, diligence, and commitment in developing this comprehensive budget. With the collective efforts of our elected leaders, employees, and engaged community members, the City of Downey is well -positioned to maintain financial stability, deliver high -quality services, and support a thriving and sustainable future for all.
Respectfully Submitted,
CITY OF DOWNEY
Roger Bradley
City Manager
Proudly coii-imitted to continuously
imp m,=ping thF, quality of Rife for the
Dovry rey community by pi oidinL
excellent sewice it a p ofeasiora9,
ethical and racporsibie n-ran ricer.
Integrity
comm�tment
ReS,P4_7'c_�
Te3rnwor
Engagement
Excellence
Fiscall Responsibility
Econor-iic Vibrancy
Efficic-ncgy,and Adaptability
Quality of Life, ta-etya and
Infra struc7z ure
Public Ergager7ert
City of Downey I FY 2025-2026 Proposed Annual Operating Budget 1 16
GENERAL FUND FISCAL YEAR 2025-2026 EXECUTIVE SUMMARY
Fund Balance Use (YMCA)
Revenues and Other Sources
Esitmated Revenues
DIA-yp"Uf J INCLATY-LI
Expenditures and Other Uses
Proposed Expenditures
$ 116,224,088
$ (116,079,541
[eTTsTTFTF2-rTm-F:T—T"eT-M-
Projected Fund Balance, June 30, 2026
Less:
Nonspen,clablIle Fund Balance-ACFR June 30,2024 8,807,454 Total Unavaifable, Fund Balance
FaTrar-U-0—I"IT-M
$ 43,3E5,309
(300,000)
$ 116,224,088
$ (116,079,541)
$ 43,209,85,6
$ 409,85,6
$ 8,807,454
$ 34,402,402
City of Downey I FY 2025-2026 Proposed Annual Operating Budget 1 17
RESOLUTION NO.25-0382
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
ADOPTING THE FISCAL YEAR 2025-2026 BUDGET AND THE ANNUAL
APPROPRIATIONS LUHNUT
WHEREAS, the City Council has considered the proposed budget recommended by the City Manager for the Fiscal Year 2O25-2O28;and
WHEREAS, the addition of two Parking Enforcement Officers were included in the Police Department; and
WHEREAS, the addition of one Regional Fire Communications Operator was included in the Fire Department; and
WHEREAS, the r9C|8SGifiCoti0n of one Space Center Supervisor to Space Center Manager to be more reflective of the scope of duties and responsibilities was included; and WHEREAS, the n}S|GSSifiC8U0n Of Public Information Coordinator to Public Information Specialist to be more reflective of the scope of duties and responsibilities was included; and WHEREAS, the reclassification of Honne|aeenaee Solutions Manager to Honne|aeenaee Solutions/Housing Manager tObemore reflective Ofthe scope Ofduties and responsibilities was included; and
WHEREAS, the reclassification of one Svatarn Network Engineer to Lead Gvatunna Network Engineer to be more reflective of the scope of duties and responsibilities was included; and
WHEREAS, the nau|aaaifiouUun of one System Network Engineer to IT He|pdeok to be more reflective ofthe scope ufduties and responsibilities was included; and WHEREAS, the reclassification of Assistant Civil Engineer I to Associate Civil Engineer to be more reflective of the scope of duties and responsibilities was included; and WHEREAS, the reclassification of Program Coordinator to Recreation Supervisor to be more reflective of the scope of duties and responsibilities was included; and WHEREAS, the title of on existing Office Assistant to Secretary within the Police Department is necessary to be more reflective of the scope of duties and responsibilities was iDdUd8d'. and
WHEREAS, a review of class specification for the positions of Water System Operator III and Water System Leadworker was performed based on operational needs, resulting in revisions Lothe classification specifications; and
WHEREAS, the newly established classifications of Space Center Manager, Lead Systems Network Engineer and Homelessness Solutions / Housing Manager are exempt Middle Management at -will classifications; and
WHEREAS, the newly established classifications of Public Information Specialist, IT He|pdeak and Training Coordinator, are non-exempt classifications and determined to be appropriately represented by the Downey City Employees' Association — Miscellaneous Unit.
RESOLUTION NO. 25-8302
PAGE 2
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The budget for the City of Downey for fiscal year 2025-2026 is hereby adopted as set forth in the statement of Summary of Resources and Requirements by Fund. The City Manager is hereby authorized to expend, in accordance with the laws of the State of California, the Charter of the City of Downey, and its ordinances, on behalf of the City Council, an amount of $325,326,883 for City operations as detailed in Exhibit "A".
SECTION 2. City staff is directed to prepare and publish a final budget document incorporating those changes approved by Council.
SECTION 3. In accordance with Article XIIIB of the State Constitution, and using data furnished by the State Department of Finance and the Los Angeles County Assessor, the appropriations limit for Fiscal Year 2025-2026 has been calculated.
The calculations indicated below, are computed by adjusting the appropriations limit for Fiscal Year 2024-2025 for the percentage change in either California's per capita personal income (6.44%) or the City's total assessed valuation due to new non-residential construction (1.74%); and the percentage change in population of either the County of Los Angeles (0.30%) or the City (-0.02%). Since the percentage change in the per capita personal income and the percentage change in the County of Los Angeles population will provide greater benefit to the City, these factors have been selected to compute the fiscal year 2025-26 appropriations limit. Using these factors, the appropriations limit for 2025-26 is $327,703,275, which basically means that certain aspects of the budget cannot exceed this amount. The proposed budget, currently under consideration, has appropriations subject to this limit of $103,129,103.
SECTION 4. The appropriations specified herein shall constitute the maximum amounts authorized for each department in each fund. The City Manager is hereby authorized to make budgetary transfers between departments in a fund if, in his opinion, such transfers are necessary and proper to the effective operation of the City; provided, however, that:
(a) Appropriations for personnel costs cannot be transferred to supply and service accounts. (b) Any non -budgeted equipment, new or replacement, which costs $75,000 or more requires prior City Council approval.
(c) The City Manager will inform the City Council of the purchase of non -budgeted equipment, new or replacement that costs less than $75,000.
(d) Authorized manpower levels as specified in the Budget document are neither increased nor transferred without prior approval of the City Council. However, the City Manager may exceed authorized manpower levels on a temporary basis to provide for the effective training and orientation of new employees.
SECTION 5. For the fiscal year ending June 30, 2025, the amount of unassigned Fund Balance shall be deposited into Assigned General Fund balance accounts to (1) ensure the Emergency Reserve and the Stability Reserve are appropriately funded and (2) provide future resources for other significant City projects or needs.
SECTION 6. The number and classification of employees as specified in the Budget and any amendments or revisions authorized by the City Council are hereby authorized for the fiscal year.
RESOLUTION NO. 25-8302
PAGE 3
SECTION 7. The following pay ranges shall take effect to coincide with the pay period that includes July 1, 2025 as follows:
Classification Title
Space Center Manager
Public Information Specialist
Homelessness Solutions/Housing Manager
IT Helpdesk
Lead System Network Engineer
Training Coordinator
Grade
Pay Range Per Month
TBD
$9,207.16 to
$11,232.75
TBD
$5,181.06 to
$6,418.42
TBD
$7,761.09 to
$9,614.69
TBD
$4,881.85 to
$6,047.71
TBD
$10,698.15 to $13,051.80
TBD
$4,252.94 to
$5,227.25
SECTION 8. The City Manager, or designee, is hereby authorized to make all classification specification revisions in accordance with the FY 2025-2026 Budget.
SECTION 9. The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED this 24th day of June, 2025.
HECTOR SOSA, Mayor
ATTEST:
MARIA ALICIA DUARTE, CMC
City Clerk
APPROVED AS TO FORM:
JOHN M. FUNK
City Attorney
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a Regular meeting held on the 25th day of June, 2025, by the following vote, to wit:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
RESOLUTION NO. 25-8302
PAGE 4
ABSTAIN: Council Members:
MARIA ALICIA DUARTE, CIVIC
City Clerk
RESOLUTION NO. 25-8302
PAGE 5
EXHIBIT A
SUMMARY OF RESOURCES AND REQUIREMENTS BY FUNDS
Estimate
Fund Beginning Estimated
Balance Revenues
July 1, 2025
10 General Fund 43,365,309 112,525,088
Transfers Use of Prior Year Total Operating
from Other Funds Resources Resources Expenditures
Available
3,699,000 300,000 159,589,397 104,500,978
Equipment Capital Transfers to Total
Projects Other Funds Requirements
11,578,563 116,079,541
Projected Ending
Fund Balance
June 30, 2026
43,209,855
Sub Total
43,365,309
112,525,088 3,699,000
300,000 159,589,397
104,500,978
11,578,563
116,079,541
43,209,855
15 Special Project Fund
15,584,914
- -
- 15,584,914
-
4,179,081
4,179,081
11,405,833
65 Civic Center
(25,160)
2,133,706
2,108,546
2,467,860
-
2,467,860
(359,314)
73 Special Deposit Fund ( Refundable Deposits)
65,051
65,051
-
-
65,051
76 Liability Insurance
379,437
4,221,262
4,600,699
4,686,892
-
4,686,892
(86,193)
Sub Total
16,004,241
6,354,968
22,359,209
7,154,752
4,179,081
11,333,833
11,025,376
Total
59,369,550
118,880,056 3,699,000
300,000 181,948,606
111,655,730
15,757,644
127,413,374
54,235,232
11 Federal Police Grant2
34,364
385,020
419,384
385,020
385,020
34,364
12 Measure D Operating
-
6,448,097
6,448,097
4,807,866
512,930
5,320,796
1,127,301
13 Fire Dept. Haz Material
(175,352)
234,893
59,541
233,273
233,273
(173,732)
14 Federal Fire Grant2
81,357
392,965
474,322
392,965
392,965
81,357
17 Measure 5 Operating
4,283,670
13,230,135
17,513,805
7,278,209
-
8,467,802
15,746,011
1,767,794
19 Federal Emergency Grants
65,497
65,497
-
65,497
20 Waste Reduction
(196,812)
500,000
303,188
641,879
641,879
(338,691)
22 Air Quality
448278
150,000
598,278
132,936
549,000
681,936
(83,658)
23 Street Lighting
1,901,391
3,074,900
4,976,291
3,138,401
610,000
3,748,401
1,227,890
24 Columbia Memorial Space Center2
(58,796)
276,823 1,400,000
1,618,027
2,194,420
2,194,420
(576,392)
25 TDA Article 1112
60730
89,056
149,786
170
149,000
149,170
616
27 Grants -In -Aid 2
724,257
652,194
1,376,451
711,141
711,141
665,310
28 CDBG
1,389,935
848,000
2,237,935
848,000
848,000
1,389,935
29 Federal Home Program
630,262
1,848,806
2,479,068
1,848,806
1,848,806
630,262
30 Gas Tax
309171
3,172,514
3,481,685
132,602
2,799,000
2,931,602
550,083
31 LSTA Fund
402
402
-
402
32 State - S131
4966127
3,088,842
8,054,969
7,690,000
7,690,000
364,969
39 Theatre
-
- 2,543,114
2,543,114
2,810,728
2,810,728
(267,614)
47 Art In Public Places
673,441
80,000
753,441
550
11,300
11,850
741,591
50 Storm Drain Fund
(2,378,460)
7,026,803
4,648,343
524,934
22,666,885
23,191,819
(18,543,476)
54 Transit - "PROP. C"
3,095,823
2,464,243 -
5,560,066
3,823,300
1,000,000
4,823,300
736,766
55 Transit - "PROP. A"
6,894,942
3,103,849 1,000,000
10,998,791
4,132,180
4,132,180
6,866,611
56 Transit - "MEAS. R"
779,247
1,829,182
2,608,429
14,500
1,423,740
834,881
2,273,121
335,308
57 Transit - "MEAS. M"
2,424,733
2,089,406
4,514,139
3,320,439
1,029,406
4,349,845
164,294
74 State Asset Forfeiture
130,008
130,008
-
130,008
77 Public Access
1,415,258
1,415,258
1,415,258
78 Asset Forfeiture
28,210
28,210
28,210
Sub Total 32,020,334 50,985,728 4,943,114 - 87,949,176 30,233,713 - 40,243,663 14,644,019 85,121,396 2,827,781
o Estimate
z Beginning Estimated
Fund Balance Revenues
U. July 1, 2025
In Financial Statements (ACFR) these funds are grouped as Grants Fund 26 Grants
34 NASA Infrastructure
267,070
25,386,235
Transfers Use of Prior Year
from Other Funds Resources
Total Operating
Resources Expenditures Equipment
Available
25,386,235
3,390,946 50,382 2,540,56
267,070
Capital
Projects
25,386,235
Transfers to Total Projected Ending
Other Funds Requirements Fund Balance
June 30, 2026
25,386,235 0
3,390,946 (0)
267,070
38 Vehicle Impact3 4,799,853 2,434,000 7,233,853 2,267 6,819,489 6,821,756 412,097 40 Capital Projects3 5,459,836 - 4,692011 10,151,847 - 12,294628 12,294,628 (2,142781); Sub Total 11,011,890 27,820,235 8,082,957 46,915,082 52,649 2,540,564 45,308,273 47,901,487 (986,404) In Financial Statements (ACFR) these funds are grouped as City Capital Project Fund 18 Pension Obligation Bonds 312,816 7,932,569 8,245,385 7,932,569 7,932,569 312,816 35 Measure S Debt Service - 5,076 856 5,076,856 5,076,856 5,076,856 (0) 58 Measure M Bond 2021A 725,913 1,029,406 1,755,319 1,029,406 37,088 1,066,494 688,825 Sub Total
51 Water Fund'
72 Sewer Fund'
Sub Total
TOTAL CITY BUDGET
1,052,556
4,715,666 20,077,219
14,873,712
15,926,268
24,792,885
14,873,713
57,152
16,596,436 1,045,572 14,832,600 1,103,536
14,930,865 995,404
33,578,144 (8,785,259)
6,480,068 1,805,000 8,285,068 1,726,356 - 1,800,000 57,190 3,583,546 4,701,522 17,858,263 26,359,441 44,217,704 23,252,211 1,045,572 16,632,600 1,160,726 42,091,109 2,126,595 121,312,593 224,045,460 31,598,783 300,000 376,956,837 180,068,016 3,586,136 102,241,689 31,562,389 317,458,230 59,198,607 61 Employee Benefit Fund 4,253,797 3,273,706 7,527,503 4,277,037 - - 4,277,037 3,250,466 62 Equipment Fund (199,400) 3,838,150 3,638,750 - 3,555,222 36,394 3,591,616 47,134 Total Internal Service Funds 4,054,397 7,111,856 11,166,253 4,277,037 3,555,222 36,394 7,868,653 3,297,600 GRAND TOTAL 125,366,990 231,157,316 31,598,783 300,000 388,123,090 184,345,053 7,141,358 102,241,689 31,598,783 325,326,883 62,496,207