Item No. 14.
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:OFFICE OF THE CITY MANAGER
BY:MARLON RAMIREZ, INTERIM ASSISTANT FINANCE DIRECTOR
DATE:FEBRUARY 10, 2026
SUBJECT:ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2025
EXECUTIVE SUMMARY
The City Council will receive and file the City’s Annual Financial Comprehensive Report (ACFR) for the Fiscal Year Ending June 30, 2025. An ACFR is a collection of financial statements for a government entity that complies with governmental accounting standards. ACFRs are audited by an independent auditor and include three sections:
Introductory, Financial, and Statistical. Together, these sections provide an overview of the City’s financial position, results of operations, and long-term financial trends. Governmental entities are required by law to complete an annual ACFR.
RECOMMENDATION
That the City Council:
Receive and file the City’s Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ending June 30, 2025.
BACKGROUND
Each year, the City of Downey develops an Annual Budget to serve as a road map for the City’s accounting for the upcoming fiscal year (July 1 - June 30). The Annual Comprehensive Financial Report (ACFR) is viewed as the final destination of that road map as it includes the actual financial statements that summarize the City’s financial activity (revenues and expenditures) for the year as prescribed by governmental accounting standards, such as those set by Generally Accepted Accounting Principles (GAAP) and the Government Accounting Standards Board (GASB).
Further, the ACFR explains the financial position and results of operations of the City as measured by the financial activity of its various funds and account groups. The intent of the ACFR is to give readers a full understanding of the City’s financial affairs.
The ACFR is presented in three sections: introductory, financial, and statistical sections. The introductory section includes a transmittal letter, the City’s organizational chart, and a list of principal officials. The financial section includes general purpose financial statements and schedules, the independent auditor ’s report, and the notes to the financial statements. The statistical section includes select financial and demographic information on a multi- year basis.
As part of its system of checks and balances, the City also contracts with an independent auditor to review the financial statements contained in the ACFR.
The Government Finance Officers Association of the United States and Canada (GFOA) awards a Nationally recognized Certificate of Achievement for Excellence in Financial Reporting to local government ACFRs. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. The City has received this award for the City’s ACFR for the last 26 consecutive years. The City has submitted this year’s ACFR for consideration and expects the quality to continue to meet the same high standards as it has in the past. Results of these awards are typically released in June, after a lengthy review process. The City’s ability to communicate financial and operational matters in a transparent manner is a City Council priority and component of the Downey Forward Strategic Plan (Fiscal Responsibility – Maintain a financially stable local government). Effective communication of City finances is critical to building trust with the public. This year’s report is published on the City’s website, along with all prior years’ reports.
ANALYSIS
The City’s independent auditor, LSL, CPA, has completed its audit of the City’s ACFR for Fiscal Year ended June 30, 2025. LSL has issued an unmodified or “clean” opinion dated December 19, 2025, which means: The City’s financial statements are free of any material misstatements; are in accordance with GAAP; and fairly present both the financial position and the results of operations for the year ended June 30, 2025. It should also be noted that receiving an unmodified opinion is the highest level of assurance an entity can receive from its independent auditors (a “clean audit”).
Financial Highlights
In the ACFR, the City’s financial highlights are demonstrated in two formats: Government-Wide Financial Statements (Net Position) and Fund Financial Statements (Governmental Funds). This division provides the reader with a broad overview of the City’s finances as described below.
Net Position
The Statement of Net Position presents information on all of the City’s assets and deferred outflows of resources, as well as the liabilities and deferred inflows of resources, including capital assets and long-term liabilities, with the difference between the two reported as net position (in a similar manner to a private-sector business). Over time, increases or decreases in the net position may serve as a useful indicator of whether the financial position of the City as a whole is improving or deteriorating.
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources, on June 30, 2025, by $261 million (net position). Of this amount, $30.8 million is restricted for public works projects, $7.1 million for capital projects, $6.0 million for Low & Moderate Housing, and $1.3 million for Public Safety.
The government's total net position increased by $15 million. The main reason for the increase is a restatement in the amount of $ 6.5 million due to the implementation of GASB Statement No. 101, Compensated Absences. The calculation to adhere to GASB 101 resulted in a restatement decreasing the City's liability by $6.1 million. Additionally, there was an increase of $8.5 million in revenues over expenses.
The City's total long-term liabilities decreased by $26.3 million during the current fiscal year. CalPERS pension liability decreased by $8.1 million this fiscal year. In addition, the OPEB (Other Post-Employment Benefits) liability decreased by $1.3 million and Claim and Judgments increased by $1.4 million. Additionally, bond principal balances decreased by $11.4 million and compensated absences decreased by $8.8 million.
Governmental Funds
The fund financial statements focus on current available resources and are organized and operated on the basis of individualized funds, similar to the format of the City’s annual budget. Unlike the statement of net position, governmental fund financial statements focus on near-term inflows and outflows of spending resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
The City's governmental funds reported combined ending fund balances of $108.6 million, a decrease of $11.8 million in comparison with the prior year. Approximately 53.98% of this total amount, $58.6 million, is available for spending at the government's discretion (committed, assigned, and unassigned fund balance) within the guidelines of the funding sources.
Assigned and unassigned fund balance for the general fund was $49.4 million or 42.54% of total general fund expenditures. This represents a decrease of $870 thousand or 1.76%, from the prior year. The attributing factors are increase of wages due to cost of living increases, general liability insurance premiums and other general administrative expenses.
Measure S and Measure D
As part of this year ’s ACFR, the City incorporated a separate Independent Auditor’s Report on Compliance and on Internal Control Over Compliance for the City’s Transactions and Use Tax measures. Fiscal Year 2023–2024 marked the first year the City included a compliance report for Measure S. Fiscal Year 2024–2025 represents the second year of Measure S reporting and the first year the City has included a compliance report for Measure D.
The independent auditor concluded that the City complied, in all material respects, with the applicable compliance requirements of both Measure S and Measure D. These compliance reports will be included as part of the ACFR on an ongoing basis. The City remains committed to the diligent and transparent use of voter-approved transactions and use tax revenues.
CITY COUNCIL PRIORITIES
Fiscal Responsibility
Public Engagement
FISCAL IMPACT
There is no fiscal impact associated with this report.
Attachments
City of Downey Annual Comprehensive Report (ACFR) for the Fiscal Year End June 30, 2025
Annual Comprehensive
Financial
Report
Fiscal Year Ended June 30, 2025
California
CITY OF DOWNEY, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Prepared by: Finance Department
7+,63$*(,17(17,21$//</()7%/$1.
CITY OF DOWNEY, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal ........................................................................................................................................... i Mayor and City Council .................................................................................................................................. vii Organization Chart .......................................................................................................................................... viii Certificate of Achievement for Excellence in Financial Reporting ................................................................... ix
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT ........................................................................................................... 1
MANAGEMENT'S DISCUSSION AND ANALYSIS .......................................................................................... 5
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position .................................................................................................................. 21
Statement of Activities ....................................................................................................................... 22
Fund Financial Statements:
Balance Sheet - Governmental Funds .............................................................................................. 24
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ........................................................................................................ 25
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ....................................................................................................... 26
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ....................................................................................................................... 28
Statement of Net Position - Proprietary Funds .................................................................................. 29
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds ....................................................................................................... 30
Statement of Cash Flows - Proprietary Funds .................................................................................. 31
Statement of Fiduciary Net Position .................................................................................................. 33
Statement of Changes in Fiduciary Net Position ............................................................................... 34
Notes to Financial Statements ................................................................................................................. 37
CITY OF DOWNEY, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in the Net Pension Liability and Related Ratios - Miscellaneous Plan ............................................................................................................................ 82 Schedule of Changes in the Net Pension Liability and Related Ratios - Safety Plan ........................................................................................................................................ 84 Schedule of Contributions – Miscellaneous and Safety Plan .................................................................. 87 Schedule of Changes in the Net OPEB Liability and Related Ratios ...................................................... 88 Schedule of Contributions - OPEB ........................................................................................................... 90 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – General Fund ........................................................................................................................................... 91
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual - Housing Authority Special Revenue Fund ............................................................................................... 92
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual - CIP Grant Special Revenue Fund ............................................................................................................ 93
Notes to Required Supplementary Information ........................................................................................ 94
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Governmental Funds .................................................................................. 98
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds .............................................................................................. 106
CITY OF DOWNEY, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (CONTINUED)
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – Special Revenue Funds:
COVID-19 Grants ............................................................................................................................ 116 Waste Reduction ............................................................................................................................. 117 Street Lighting .................................................................................................................................. 118 HOME .............................................................................................................................................. 119 Hazardous Material ......................................................................................................................... 120 CATV Public Access ........................................................................................................................ 121 Air Quality ........................................................................................................................................ 122 Grants .............................................................................................................................................. 123 CDBG .............................................................................................................................................. 124 Asset Forfeiture ............................................................................................................................... 125 Transit Prop C ................................................................................................................................ 126 Transit Prop A ................................................................................................................................ 127 Transit Measure R ........................................................................................................................... 128 Gas Tax ........................................................................................................................................... 129 SB 1 Transportation ........................................................................................................................ 130 Transit Measure M ........................................................................................................................... 131 Art In Public Places ......................................................................................................................... 132 Measure W – Sewer & Storm Drain ................................................................................................ 133 Asset Forfeiture - State .................................................................................................................... 134 Measure S Operating ...................................................................................................................... 135 Measure D Operating ...................................................................................................................... 136
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – Capital Project Funds:
City Capital Projects Fund ............................................................................................................... 137 Measure S Capital ........................................................................................................................... 138
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – Debt Service Funds:
Debt Service .................................................................................................................................... 139 Measure S Debt Service .................................................................................................................. 140 Measure R Bond 2021B .................................................................................................................. 141 Measure M Bond 2021A .................................................................................................................. 142
Combining Statement of Net Position - Internal Service Funds ............................................................. 144
Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Internal Service Funds ........................................................................................... 145
Combining Statement of Cash Flows - Internal Service Funds ............................................................. 146
Combining Statement of Fiduciary Net Position –
Custodial Funds .................................................................................................................................. 148
Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ..................................................................................................................................... 150
CITY OF DOWNEY, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
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Number
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ...................................................................... 156 Change in Net Position – Expenses and Program Revenues – Last Ten Fiscal Years ...................................................................................................................... 158 Change in Net Position – General Revenues – Last Ten Fiscal Years ........................................... 160 Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................... 162 Changes in Fund Balances of Governmental Funds –
Last Ten Fiscal Years ...................................................................................................................... 164
Revenue Capacity:
Assessed Valuation – Last Ten Fiscal Years .................................................................................. 166 Assessed Value of Taxable Property – Last Ten Fiscal Years ....................................................... 168 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ............................................. 170 Principal Property Taxpayers – Current Year and Nine Years Ago ................................................ 172 Property Tax Levies and Collections – Last Ten Fiscal Years ........................................................ 173
Debt Capacity:
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 174 Ratios of General Bonded Debt to Assessed Value and
Net Bonded Debt per Capita – Last Ten Fiscal Years .................................................................... 175 Direct and Overlapping Debt ........................................................................................................... 176 Legal Debt Margin Information – Last Ten Fiscal Years ................................................................. 178 Golf Course Revenue Bond Coverage ............................................................................................ 180
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Calendar Years ................................................ 181 Principal Employers – Current Year and Nine Years Ago ............................................................... 183
Operating Information:
Full-Time and Part-Time City Employees by Function –
Last Ten Fiscal Years ...................................................................................................................... 184 Operating Indicators by Function – Last Ten Fiscal Years ............................................................. 186 Capital Asset Statistics by Function – Last Ten Fiscal Years ......................................................... 188
Introductory
Section
Annual Comprehensive
Financial
Report
Fiscal Year Ended June 30, 2025
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December 19, 2025
Honorable Mayor and City Council and Citizens of the City of Downey:
In accordance with the Charter of the City of Downey, it is with great pleasure that I submit for City Council’s consideration the Annual Comprehensive Financial Report (ACFR) of the City of Downey for the fiscal year ended June 30, 2025.
Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal controls established for that purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.
The ACFR is prepared in accordance with local and state laws requiring that financial statements be presented in conformity with accounting principles generally accepted in the United States of America, including Financial Reporting requirements outlined by the Governmental Accounting Standards Board (GASB) statement. The ACFR was also prepared with the opinion of LSL, LLP, an independent firm of licensed certified public accountants. This report is presented in a manner designed to fairly set forth the financial position and results of operations of the City.
The ACFR includes disclosures designed to enable the reader to gain an understanding of the City's financial affairs.
In keeping with the GASB, management is required to provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a Management’s Discussion and Analysis (MD&A). This transmittal letter is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found in the financial section.
PROFILE OF THE CITY OF DOWNEY
The City of Downey, located twelve miles southeast of the City of Los Angeles in the County of Los Angeles, California, encompasses an area of 12.6 square miles and serves a residential population of 111,793 (U.S. Census Bureau).
The City of Downey was incorporated on December 17, 1956 and on November 5, 1996 became a Charter City. Downey is operated under a Council-Manager form of government, and is governed by a five-member Council with four elected from designated districts and one elected at large.
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The City provides full ranges of services, which includes but is not limited to, police and fire protection; water and wastewater utilities; street maintenance; public transportation; parks and recreation; planning and building safety; and library and cultural programs. In addition to general government activities, the City exercises oversight of the Downey Community Development Commission, the City of Downey Water Facilities Corporation and the Downey Public Facilities Financing Corporation; therefore, the financial activities of these organizations are included in this reporting entity. Since the Downey Unified School District, other special districts, the County of Los Angeles and its related agencies have not met the established criteria for inclusion in the reporting entity; they have been excluded from this report.
ECONOMIC CONDITION AND OUTLOOK
The U.S. economy continued to demonstrate resilience through 2024 and into the first half of 2025, supported by a strong labor market, easing supply-chain pressures, and steady consumer spending. Inflation moderated compared to prior years, though it remained above the Federal Reserve’s long-term target, contributing to tighter financial conditions. Global uncertainties—particularly ongoing geopolitical tensions, including the Russia-Ukraine conflict—continued to influence commodity prices and investor sentiment. Despite these headwinds, overall economic activity remained stable, with indicators pointing toward gradual but sustained expansion in 2025. A key measurement includes the real gross domestic product (GDP), which increased at an annual rate of 3.8 percent in the second quarter of 2025 according to the estimate released by the Bureau of Economic Advanced Analysis in September 2025. The increase in the second quarter real GDP primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports.
S&P Global Ratings forecast U.S. GDP growth of 1.9% in 2025 and 1.8% in 2026. Both up slightly from previous forecasts. This reflects better than expected economic activity in the third quarter, new budget legislation, decreasing interest rates and the diminishing effects of the uncertainty surrounding U.S. trade policy.
Housing, Unemployment and Consumer Confidence
As of June 2025, California’s housing market continues to face affordability pressures, though mortgage rates have moderated somewhat: the statewide average 30-year fixed-mortgage rate was approximately 6.82%. While sales activity remains challenged, statewide home-sale volume has trended down compared with prior historical norms. Meanwhile, the statewide median home price in June 2025 was roughly $899,560, slightly below some earlier estimates but reflecting the persistence of high home values.
Affordable housing remains a serious challenge in California. According to the California Association of Realtors (C.A.R.), only about 15% of California households could afford to purchase a median-priced single-family home in the second quarter of 2025 — a share hovering near all-time lows. The high cost of housing is driven in part by a large share of sales in the upper end of the market: homes priced over $1 million continue to represent a significant portion of total sales. As of mid-2024, such million-dollar-plus homes accounted for about 36.3% of all sales — among the highest shares in recent years. California also continues to experience a housing supply shortage, which contributes to ongoing affordability challenges for many households across the state.
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For the year ending June 30, 2025, the median home price in Los Angeles County stood at $889,180, a 6.8 percent increase when compared to the year ended June 30, 2024. Additionally, for the year ended June 30, 2024, the number of closed sales of single-family homes increased by 1.1 percent from the previous year.
For the period reviewed, Downey’s single-family housing market shows a moderation in both activity and pricing. In 2024, a total of 368 single-family homes were sold, compared to 413 sales in 2023, reflecting an 11 percent decline in annual sales. For 2025 year-to-date, a total of 186 homes have sold, compared to 157 during the same period in the previous year. The median sales price decreased slightly by 0.15 percent, from $835,000 in 2024 to $833,750 in 2025 as of June 30, 2025. Although prices have remained relatively stable, the decline in sales volume suggests affordability constraints and broader market adjustments affecting buyer demand.
The financial impact of the cooling housing market is likely a reduction in the rate of growth in property tax revenue that the City receives. Due to California State Proposition 13, properties cannot be reassessed at their market values until a change in ownership occurs. However, assessment values, whether at market or below, do still increase by an annual inflationary factor, which is determined by the County Assessor. The inflationary factor is capped at not more than two percent annually. While the reduction in annual home sales is expected to continue during the upcoming year, the average sale price is still expected to show small to moderate growth, positively affecting property tax revenue for the City.
From June 2024 to June 2025, the United States unemployment rate did not change from
4.1 percent, according to the U.S. Bureau of Labor Statistics. California’s unemployment rate rose from 5.2 percent in June 2024 to 5.4 percent in June 2025. As of June 2025, the unemployment rate in Downey is 5.4 percent, down from 5.6 percent one year ago.
At the end of June 2025, the Consumer Price Index (CPI) for all items in the United States increased by 2.7 percent over the previous 12 months, reflecting a modest rise compared to earlier periods. This figure shows a steady trend of inflation slowing down since the peaks observed in prior years, particularly compared to the 9.1 percent rise recorded in June 2022.
In June 2025, real GDP increased by 3.8 percent annually, according to the U.S. Bureau of Economic Analysis, reflecting an improvement in financial conditions and people spending more on goods than originally expected. These updates suggest a positive shift in economic conditions, with inflation staying relatively unchanged and stronger-than-expected growth.
MAJOR INITIATIVES
The City Council’s five priorities drive the development of the annual budget goals and objectives, which are the basis for the budgetary proposals. The individual department goals were confirmed during the City Council’s annual goal-setting workshop as supporting the City Council’s five priority areas:
•Fiscal Responsibility;
•Economic Vibrancy;
•Efficiency & Adaptability;
•Quality of Life, Safety, & Infrastructure; and
•Public Engagement.
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During the 2024-2025 fiscal year, the City undertook an ambitious set of goals and objectives that were in line with the City Council’s five priorities. Notable successes include:
•12th 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
•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
•Miles Paved - Since July 2024: 17 Miles of Residential Streets | 5 Miles of Arterial Streets | 3.5 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 | Alleys North of Foster Rd. and Lakewood Blvd. | Traffic Signal Upgrades | 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
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•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%
FUTURE INITIATIVES
The City will continue prioritizing fiscal responsibility by strengthening internal auditing and financial controls, updating payroll policies, implementing GASB 101, and pursuing additional federal, state, and private grant funding to support core services and community projects. Efforts to expand facility rentals, enhance revenue-generating programs, and support the long-term success of major capital efforts—including the expanded Space Center and ongoing homeless and housing initiatives—will further reinforce the City’s financial sustainability.
Promoting economic vibrancy remains a key focus, with ongoing work to support major development projects, advance the “Back 20” milestones, and complete the City’s Economic Development Strategic Plan. Other efforts include continued collaboration with Los Angeles County on the development of the Rancho Los Amigos South Campus. Adjacent to this site, the Southeast Gateway Line (formerly the West Santa Ana Branch) Light Rail Station is advancing as part of the West Santa Ana Branch (WSAB) Transit Corridor Project. The City will continue implementing strategies to diversify restaurant and retail offerings, enhance business retention, and strengthen support for development processes that encourage private investment.
Additional initiatives include concluding the election system transition process and guiding development activity through transparent, timely, and customer-focused review practices.
To enhance efficiency and adaptability, the City will modernize internal systems, streamline operations, and expand workforce capabilities. This includes upgrading agenda management and transcription systems, digitizing records, advancing Accela improvements for electronic plan review, developing an AI policy to improve internal workflows, and establishing a structured internship program to cultivate future talent. Efforts also include expanding internal training across planning, building, code enforcement, and public safety disciplines, replacing the City’s ERP system, and strengthening recruitment and retention strategies across the organization.
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Improving quality of life, safety, and infrastructure continues to guide many citywide efforts. The City will move forward with extensive street, alley, and intersection improvements; expand tree planting programs; upgrade stormwater, recycled water, and groundwater systems; and complete multiple traffic safety projects. The City is also prioritizing the expansion of Science, Technology, Engineering, and Mathematics (STEM) education within the community, with the expansion of the Columbia Memorial Space Center, including the restoration of the Space Shuttle Inspiration and breaking ground for the center’s second building expansion in November of 2025. Further, the City will continue supporting significant development projects, such as the expansion of the YMCA, which aligns with Downey’s long-term vision for sustainable growth and community improvement. Public safety initiatives include adopting updated fire codes, supporting emergency preparedness and evacuation planning, strengthening regional coordination, and enhancing recruitment and training for fire and police personnel.
Homelessness response will continue through proactive encampment intervention and expanded access to services and housing resources.
Finally, public engagement remains a central priority, with the City enhancing communication and expanding opportunities for residents to participate in programs, events, and decision-making. This includes strengthening outreach in public safety, library services, and parks and recreation; expanding digital tools that provide insight into development activity; increasing visibility at community events; and growing partnerships with schools, nonprofit organizations, and regional agencies. These efforts collectively reinforce the City’s commitment to transparency, accessibility, and meaningful community involvement.
FINANCIAL INFORMATION
Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse, and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). The City also has a City Council budget subcommittee in place.
The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.
As part of our internal control evaluation, the City contracts with an outside independent public accounting firm to complete a special audit, which is called a single audit, to comply with certain federal government regulations. During this audit, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs as well as to determine that the government has complied with applicable laws and regulations. The results of the government's single audit for the fiscal year ended June 30, 2024 provided no instances of significant violations of applicable laws and regulations. The single audit for the current fiscal year is in progress; however, the City fully anticipates that there will be no instances of material weaknesses in the internal controls.
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LONG RANGE FINANCIAL PLANNING
Annually, the City produces a five-year general fund long-term financial forecast as part of its budget process. The comprehensive projection analyzes current economic conditions at micro and macro levels. The forecasts are designed to highlight financial issues which the City can address proactively. Moreover, it is a tool that allows policymakers an opportunity to prioritize funding needs over a period of time. The City has consistently applied effective fiscal management approaches to preserve revenues and reduce spending; as a result, the City maintains a General Fund Emergency Reserve equivalent to 15 percent of the average of the last three years of General Fund revenues and a Stability Reserve equivalent to 20 percent of the average of the last three years of General Fund revenues for a combined total of 35 percent.
The City maintains its commitment to fiscal responsibility and effective resource management.
Fiscal policies and practices have been continuously reviewed and enhanced with the goal to improve the City’s overall financial well-being and provide the highest level of service to our residents.
BUDGETING CONTROLS
The City's annual budget is a financial planning tool outlining the estimated revenues and appropriations for the City. Prior to July 1 of each year, the City prepares and submits its budget to the City Council for the ensuing fiscal year. The objective of the budget is to ensure funds are expended in accordance with the priorities of the City Council. Activities of the General Fund, Special Revenue Funds and the Capital Project Funds are included in the budget. The City conducts periodic reviews to ensure compliance with the provision of the annual operating budget and prepares a quarterly budget report to the City Council. The level of budgetary control is the department level within the fund. The City Council may amend the initial budget by motion during the fiscal year. The City uses the encumbrance system as a management control technique to assist in controlling expenditures. At year-end, all appropriations and encumbrances are canceled (allowed to lapse) and thus are not included in reported expenditures.
DEBT ADMINISTRATION
The City recently adopted a Comprehensive Debt Policy to govern investments, ensure prudent fiscal management, and promote transparency. The City's 2005 Pension Obligation Bonds (POBs) were rated "Aa3" by Moody's Investors Service, the 2017 Lease Revenue Bonds were rated “AA-“ by Standard & Poor’s, and the City’s 2021 Pension Obligation Bonds (POBs) were rated "AA" by Standard & Poors. The City of Downey has no general obligation debt. However, the City does have two revenue bond issues and one tax allocation bond issue. The City uses various trustees as its paying agents for all bonds and coupons. The City deposits with the trustee, according to agreement, principal and interest requirements as appropriate.
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A list of the City’s debt issues is summarized below:
Principal Issue Trustee Principle Balance 6/30/2025)
Downey Public Facilities Financing Corporation:
2021 Pension Obligation Bonds Wells Fargo Trust Services $ 102,380,000 2017 Lease Revenue Bonds U.S. Bank $ 33,040,000
2014 Capital Lease Western Alliance Bank $ 1,170,000
California Statewide Communities Development Authority:
2005 Pension Obligation Bonds Wells Fargo Trust Services $ 10,905,000 Note 12 Long-Term Debt, of the Notes to Basic Financial Statements, presents more detailed information about these debt issues.
OTHER INFORMATION
Independent Audit
The City Charter requires an annual audit of the City’s financial records and transactions of all administrative departments of the City by an independent Certified Public Accountant.
Accordingly, this year's audit was completed by LSL, LLP. The auditor's report has been included in this report.
Government Finance Officers Association of the United States and Canada (GFOA) Certificate of Achievement Award
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Downey for its financial report for the fiscal year ended June 30, 2024. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgments
The preparation and development of this report would not have been possible without the year-round work of the Finance Department staff and their special efforts, working in conjunction with the City's independent auditors, LSL, LLP, to produce this report. I would like to express my appreciation to all members of the Finance
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Department.
I would like to take this opportunity to compliment and thank the staff members of the City who were associated with the preparation of this report. I would also like to thank the City Council and City Manager for their leadership and strong support in the implementation of vital fiscal management policies and procedures.
Respectfully submitted,
Marlon Ramirez
Interim Assistant Finance Director
L[
MAYOR AND CITY COUNCIL
Hector Sosa
Mayor
Dorothy Pemberton
District 3
Claudia M. Frometa
District 4
Horacio Ortiz
District 1
Council Member
Mayor Pro Tem
Council Member
District 2
Mission
Proudly committed to continuously
improving the quality of life for the
Downey community by providing
excellent service in a professional,
ethical and responsible manner.
Values
Integrity
Commitment
Respect
Teamwork
Engagement
Passion
Excellence
City Council Priorities
Fiscal Responsibility
Economic Vibrancy
Efficiency and Adaptability
Quality of Life, Safety and
Infrastructure
Public Engagement
Mario Trujillo
Council Member
District 5
[
Citizens of Downey
ORGANIZATION CHART
Charter Boards &
Commissions
Community Services Commission
Planning Commission
Youth Commission
Library Advisory Board
Personnel Advisory Board
City Council
Five Members
Mayor Rotated Annually
Committees
Disability Appeals Board
Keep Downey Beautiful
Public Works Committee
Public Facilities Financing
Corporation
Water Facilities Corporation
City Clerk
Maria Alicia Duarte, CMC
City Manager
Roger Bradley
City Attorney
John Funk
Assistant City Manager
Vaniah De Rojas
Columbia Memorial Space
Center & Downey City Library
Benjamin Dickow
Executive Director & President
Library Director
Community Development
Irma Huitron
Director
Building and Safety
Code Enforcement
Planning
Finance
Marlon Ramirez
Interim Assitant Finance
Director
Administration
Purchasing
Accounting
Risk Management
Revenue
Fire
Anthony Hildebrand
Fire Chief
Administration
Suppression
Paramedics
Prevention
Joint Communications
Human Resources
James McQueen
Director
Employee Benefits
Employee and Labor Relations
Recruitment and Selection
Parks & Recreation
Jason Chacon
Director
Parks & Recreation
Civic Theatre
Social Services
Golf Course
Transit
Cemetery
Police
Scott Loughner
Police Chief
Administration
Field Operations
Detectives
Crossing Guard
Public Works
Matt Baumgardner
Director and City Engineer
Administration
Engineering
Utilities
GIS
Maintenance
Streets
Economic Development
Austin Ramirez
Director
Economic Development
Housing
Homelessness Solutions
of
[L
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Downey
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
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Financial
Section
Annual Comprehensive
Financial
Report
Fiscal Year Ended June 30, 2025
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LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Honorable Members of the City Council
City of Downey, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Downey, California, (hereafter, the City) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2025, the City adopted new accounting guidance, GASB Statement No. 101, Compensated Absences. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
To the Honorable Members of the City Council
City of Downey, California
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. •Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. •Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. •Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and required pension and other post-employment benefits schedules as listed on the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 To the Honorable Members of the City Council
City of Downey, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 10, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
Irvine, California
December 1
, 2025
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4 MANAGEMENT'S DISCUSSION AND ANALYSIS
The City of Downey management team offers readers of the City of Downey’s financial statements this narrative overview and analysis of the financial activities of the City of Downey for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i-ix of this report. All amounts, unless otherwise indicated, are expressed in millions of dollars.
Financial Highlights
•The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources, on June 30, 2025, by $261 million (net position). Of this amount, $30.8 million is restricted for public works projects, $7.1 million for capital project, $6.0 million Low & Mod Housing and $1.3 million for Public Safety.
•With the fiscal year ending on June 30, 2025, the government's total net position increased by $15 million. The main reason for the increase is a restatement in the amount of $ 6.5 million due to implementation of GASB Statement No. 101, Compensated Absences. The calculation to adhere to GASB 101 resulted in a restatement decreasing liability of $6.1 million. Additionally, there was an increase of $8.5 million in revenues over expenses.
•The City's total long-term liabilities decreased by $26.3 million during the current fiscal year. CalPERS pension liability decrease by $8.1 million this fiscal year. In addition, the OPEB (Other Post-Employment Benefits) liability decreased by $1.3 million and Claim and Judgments increased by $1.4 million. Additionally, bond principal balances decreased by $11.4 million and compensated absences decreased by $8.8 million. •As of June 30, 2025, the City's governmental funds reported combined ending fund balances of $108.6 million, a decrease of $11.8 million in comparison with the prior year. Approximately 53.98% of this total amount, $58.6 million, is available for spending at the government's discretion (committed, assigned, and unassigned fund balance) within the guidelines of the funding sources. •As of June 30, 2025, assign/ed and unassigned fund balance for the general fund was $49.4 million or 42.54% of total general fund expenditures. This represents a decrease of $870 thousand or 1.76%, from the prior year.
The unassigned fund balance is unrestricted in its use and can be designated by the City Council for specific purposes at future City Council Meetings.
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide the reader with a broad overview of the City's finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City's assets and deferred outflows of resources, and liabilities and deferred inflows of resources, including capital assets and long-term liabilities, with the difference between the two reported as net position. Over time, increases or decreases in the net position may serve as a useful indicator of whether the financial position of the City as a whole is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental
activities of the City include general government, public safety, public works, parks and recreation, library, community development, unallocated infrastructure depreciation, and interest on long term debt.
The business-type activities of the City include a water utility. sewer and storm drain utility and golf course. The revenue generated from these functions that intended to recover all or a significant portion of their costs through user fees and charges.
The government-wide financial statements include not only the City itself (known as the primary government), but also four legally separate entities: The City of Downey Public Facilities Financing Corporation, the City of Downey Housing Authority, the City of Downey Water Facilities Corporation and The Downey Public Financing Authority.
The City is financially accountable for these entities and financial information for these blended component units is reported within the financial information presented for the primary government itself. The government-wide financial statements can be found immediately following this discussion and analysis.
Fund Financial Statements
The fund financial statements focus on current available resources and are organized and operated on the basis of funds. A fund is a self-balancing group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives in accordance with special regulations, restrictions or limitations.
Like other state and local governments, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Fund
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.
Because the focus of the government fund is narrower than that of the government-wide financial statements, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains various individual governmental funds. Information is presented separately in the Governmental Funds Balance Sheet, and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances, for the General Fund, Housing Authority Special Revenue Fund, and CIP Grant Special Revenue Fund; all of which are considered to be major funds. Data from other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these other governmental funds is provided in the form of combining statements elsewhere in this report.
The basic financial statements also include budgetary comparison statements for the General Fund, to demonstrate compliance with the annual budget as adopted and amended.
The basic governmental fund financial statements can be found immediately following the government-wide financial statements.
Proprietary Funds
The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses its enterprise funds to account for its water utility, sewer and storm drain utility and golf course. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its employee benefits and self-insurance activities, vehicle fleet operations, and miscellaneous equipment replacement and maintenance, and duplication and telecommunications
services. Because these services predominantly benefit governmental rather than business-type functions, they have been included with governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary funds financial statements provide separate information for all of the enterprise funds, which are considered to be major funds of the City. Conversely, all of the internal service funds are combined into a single, aggregated presentation in the proprietary fund’s financial statements. Individual fund data for the Internal Service funds is provided in the form of combining statements in the Supplementary Schedule section of this report.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds include Special Deposit Fund, Cemetery District Fund, and other funds. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is similar with that used for proprietary funds. The fiduciary fund financial statements can be found in the Basic Financial Statements section of this report.
Notes to Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found immediately following the basic fiduciary fund financial statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide Defined Benefit Pension Plans and Other Post Employment Benefit Plans to its employees. It includes Schedules of Funding Progress for the City Employee Retirement Plan and Postemployment Benefits Other Than Pensions, and Budgetary Comparison Schedules for the General Fund, Housing Authority Special Revenue Funds, CIP Grant Special Revenue Funds, and Covid-19 Special Revenue Fund.
The combining statements referred to earlier in connection with other governmental funds and internal service funds are presented for Other Special Revenue Funds, Other Capital Projects Funds, Internal Service Funds and Fiduciary Funds. These combining and individual fund statements and schedules can be found immediately following the required supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The government-wide financial statements provide long-term and short-term information about the City's overall financial condition. This analysis addresses the financial statements of the City as a whole.
In the case of the City of Downey, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $155.8 million for governmental activities and $105.2 million for business-type activities for a total of $261 million at the close of the most recent fiscal year. The largest portion of the City's net position, $340 million reflects its net investment in capital assets (e.g., land, buildings and systems, improvements other than buildings, machinery and equipment, infrastructure, and construction in progress); less any related outstanding debt used to acquire those assets. The City's only outstanding debt against financed purchase options are the loans from the federal government and several finance purchase options for public safety vehicles, ambulance and various types of fire equipment. The City uses these financed purchase options to provide services to residents; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Of the remaining total net position, $46.4 million is restricted to specifically stipulated spending agreements originated by law, contract or other agreements with external parties.
Governmental Activities
The City’s net position in Governmental Activities increased by $8.4 million. The $8.4 million increase is due to the $6.5 million restatements to the beginning net position and this year’s change in net position of $1.9 million. The City’s beginning net position was restated from $147.4 million to $153.9 million. The $6.5 million is related to the adjustment of compensated absences by $6 million and subscription asset by $438 thousand.
Revenues from Property Taxes, Sales Taxes, Franchise Taxes, Utility Users Taxes, Retail Transactions and Use Tax, and Use of Money & Property increased from prior year by $1.9 million, $469 thousand, $203 thousand, $534 thousand, $1.5 million and $874 thousand respectively with a cumulative total of $5.4 million. Revenues from charges for services increased by $68 thousand while grants and contributions decreased by $14.7 million. Grants and contributions are down by $14.7 million, primarily due to ARPA Grant, which is a one-time grant.
Total revenues compared to prior year decreased by $8.5 million. 2025 2024 2025 2024 2025 2024
ASSETS
Current and Other Assets 201,545$ 212,014$ 27,987$ 23,075$ 229,532$ 235,088$ Capital Assets 322,215 296,874 90,145 88,625 412,360 385,499 Total Assets 523,760 508,887 118,132 111,700 641,892 620,587 Deferred Outflows of Resources 37,095 61,622 386 766 37,482 62,387
LIABILITIES
Current Liabilties 50,210.43 42,053 5,533.46 4,759 55,744 46,811 Non-current Liabilities 334,871 360,106 7,124 8,405 341,995 368,512 Total Liabilities 385,081 402,159 12,657 13,164 397,739 415,323 Deferred Inflows of Resources 19,992 20,931 645 792 20,637 21,723
NET POSITION
Net Investment Capital Assets 252,095 224,269 88,120 86,226 340,216 310,495 Restricted 39,321 47,149 7,139 7,139 46,459 54,288 Unrestricted (135,634) (123,998) 9,957 5,144 (125,677) (118,854) Total Net Position 155,783$ 147,419$ 105,216$ 98,509$ 260,998$ 245,929$ Cit y of Downey
Summar y of Net Position
For Fiscal Year Ended June 30, 2025 and 2024
(Amounts Expressed in Thousands)
Governmental Activities Business-Type Activities Total
Top Governmental Activity Revenue Sources
As shown below, our top four general revenues are sales tax, property tax, retail transactions and use tax, and utility users’ tax. Revenues from governmental activities consist of 76% general revenues, while 24% consist of program revenues and transfers. General revenues for FY2024-25 increased by $6.1 million from those of the prior fiscal year mainly because of the increase in revenues from property taxes, retail transactions and use tax, as well as the rise in use of money and property.
Amount
Increase
REVENUES: 2025 2024 (Decrease)
Program Revenues:
Charges for Services 28,810$ 28,742$ 68$ Operating Grants and Contributions 8,777 22,975 (14,198) Capital Grants and Contributions 1,155 1,701 (547) General Revenues:
Taxes
Property Taxes 37,830 35,961 1,870
Sales Taxes 38,304 37,834 469
Transient Occupancy Taxes 2,503 2,456 47
Franchise Taxes 3,791 3,589 203
Utility Users Taxes 10,385 9,851 534
Other Taxes 3,847 3,473 374
Retail Transactions and Use Tax 14,408 12,923 1,485 Use of Money and Property 8,294 7,420 874
Other Revenues 6,253 5,981 271
Gain (loss) on Sale of Capital Asset 58 56 2
Total Revenues 164,415 172,962 (8,547)
EXPENSES:
Program Activities
General Government 9,686 12,485 (2,799)
Public Safety 102,491 101,140 1,351
Community Development 9,546 7,912 1,634
Community Services 14,674 14,685 (11)
Public Works 21,687 21,379 309
Interest on Long-term Debts 5,334 5,595 (261)
Total Expenses 163,419 163,197 222
Excess/(Shortage) of Revenues Over Expenses 996 9,765 (8,769) TRANSFERS:
Transfer-in 897 900 (3)
Changes in Net Position 1,894 10,665 (8,772)
Net Position at Beginning of Year (Restated)153,889 136,754 17,135 Net Position at End of Year 155,783$ 147,419$ 8,363$ Cit y of Downey
Summar y of Net Position
For Fiscal Year Ended June 30, 2025 and 2024
(Amounts Expressed in Thousands)
Governmental Activities
The following narrative addresses the significant variances in key revenues and expenses from the prior fiscal year:
1.Sales Tax: General sales tax receipts were $469 thousand or 1.24% over the previous year. As in prior year, there is a shift in consumer behavior, people are opting for essential household items over more expensive purchases resulting in moderate increase in sales tax.
2.Property Taxes: Property tax increased by $1.8 million or 5.2% over the prior year. The growth in property tax revenue for the City is driven in part by increases in median sale prices and the annual inflationary adjustment determined by the County Assessor, capped at a maximum of two percent per year.
3.Retail Transactions and Use Tax: Retail transactions and use tax increased by $1.5 million or 11.49% over the prior year, primarily because of the passage of Measure D, approved by voters in November 2024.
4.Utility Users’ Tax: Utility users’ tax increased by $534 thousand or 5.42% over the prior year. The utility users tax provides a stable revenue source for providing City services.
5.Use of Money and Property: These revenues increased by $874 thousand or 11.78% over prior year. Primarily, because of interest earned from investments, net of adjustment in market value. Revenues from rents and leases are also included under use of money and property.
6.Program Expenses: Program activities experienced an increase of $222 thousand or 0.14% from the prior year.
A total of $2.9 million increase in expenses are in the areas of Public Safety, Community Development and Public Works, while there is a total of $2.7 million decrease in General Government, as well as Community Services and Interest on Long-term Debts, the net effect is the $222 thousand overall increase.
Summary of Business-Type Activities
Revenue Sources – charges for services reflect an increase of $8.1 million or 34.9% from the prior fiscal year.
1.Water revenues - total operating revenues increase of $7.9 million or 47.65% from the prior year. The city has not altered the water rates. The chief increase was as a result of combined settlement payment of $7.4 million.
2. Sewer revenues – total operating revenues increased by $15 thousand or 0.94% from the prior year.
3.Golf revenues - the overall revenue increased by $104 thousand over prior year. The revenue increase was minor compared to FY23-24 increase of $614 thousand. The National Golf Foundation reports golf has seen a resurgence with increase in participation and engagement post pandemic which now appears to be stabilizing.
Program Expenses – the program expenses for enterprises funds have a net increase of $2.5 million or an increase of 10.86% over the prior year. From this amount, water activities ended with an increase of $2.5 million. There was an increase over prior year for pumped water due to rate increase and surge in usage. In addition, salary increases due to cost of living adjustments and water write off that was delayed as a result of the pandemic.
Sewer had a decrease of $45 thousand and Golf had a slight decrease of $2 thousand.
Amount
Increase
REVENUES: 2025 2024 (Decrease)
Program Revenues:
Charges for Services 31,342$ 23,234$ 8,108$
General Revenues:
Use of Money and Property 1,464 1,332 132
Other Revenues 57 23 34
Total Revenues 32,863 24,590 8,273
EXPENSES:
Program Activities
Water 18,541 16,010 2,532
Golf 3,860 3,862 (2)
Sewer and Storm Drain 2,967 3,012 (45)
Total Expenses 25,368 22,884 2,485
Excess/(Shortage) of Revenues Over Expenses 7,495 1,706 5,789 TRANSFERS:
Transfer-out (897)(900) 3
Changes in Net Position 6,598 806 5,792
Net Position at Beginning of year with restatement 98,619 97,703 916 Net Position at End of year 105,216$ 98,509$ 6,708$ City of Downey
Summary of Net Position
Business- Type Activities
For Fiscal Year Ended June 30, 2025 and 2024
(Amounts Expressed in Thousands)
Business-Type Activities
WATER GOLF SEWER & STORM DRAIN
$24,750
$4,992
$1,600
18,541
3,860 2,967
BUSINESS-TYPE ACTIVITIES BY PROGRAM
REVENUE EXPENSES
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The following funds have been classified as either governmental or proprietary fund types.
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements.
As of June 30, 2025, the City's governmental funds reported combined ending fund balances of $108.6 million, a net decrease of $11.8 million or 9.83% over the prior year. Approximately 53.98% of the City’s governmental fund ending fund balances, or $58.6 million, consisted of assigned and unassigned fund balance, which is available for spending at the City’s discretion within the guidelines of the funding sources. The remainder of fund balance, $49.9 million, is either non-spendable or restricted for purposes imposed by creditors, grantors, contributors, laws or regulations of other governments or through enabling legislation. Non-spendable fund balance of $10.6 million is not available for use and are comprised of advances to Successor Agency, notes and loans and prepaid costs.
Restricted fund balance of $39.2 million can only be used for specific purposes pursuant to constraints imposed by applicable law and regulations and external parties such as grantors and creditors.
General Fund Financial Highlights
The General Fund is the chief operating fund of the City. On June 30, 2025, assigned and unassigned fund balance of the general fund was $49.4 million, while total fund balance was $57.9 million. As a measure of the general fund’s liquidity, it is useful to compare committed, assigned and unassigned fund balance to total fund expenditures.
Assigned, and unassigned fund balance represents 42.57% of the total general fund expenditures. As mentioned above, however, the City Council has designated all the committed, assigned, and unassigned fund balance for specified purpose. The Overall General Fund Balance decreased by $1.2 million dollars, from $59.1 million in FY23-24 to $57.9 million in FY24-25. The attributing factors are increase of wages due to cost of living increases, general liability insurance premiums and other general administrative expenses.
For the fiscal year ended June 30, 2025, the cash and investments balance in the general fund was $45.2 million, a decrease of $4 million from the prior fiscal year. The decrease in cash is a result of various revenue and expense transactions that are detailed in the section below.
Overall, General Fund revenues for the fiscal year ended June 30, 2025 increased by $4 million, or 3.57%, over the prior year. The primary categories that increased were Taxes with an increase of $3.4 million and Use of Money and Property with an increase of $639 thousand.
Taxes increase are resulting from moderate economic growth in the following categories:
•Property Tax $1.8 million
•Sales Tax $458 thousand
•Electric Utility User Tax $590 thousand
•Business Tax increase $382 thousand
•Franchise fee $203 thousand
Use of Money and Property Tax increased by $640 thousand resulting from higher interest rates on investments from prior fiscal year.
Furthermore, charges for services revenues decreased by $395 thousand. Primarily to a reduction in Plan Check fees. In FY23-24 the City started a few additional large-scale development projects as opposed to FY24-25.
Other Financing resources decreased by $17.7 million. Transfer In for FY23-24 were $19.8 million as opposed to $5.9 million in FY24-25. The difference of $13.9 million is in large part to a one- time transfer in resulting from federal funded ARPA allocation in prior fiscal year. Transfers out increased by $5.4 million dollars from prior year. Major
transfers were to other governmental funds to provide capital expenditures, subsidize for various project operations, and to reimburse funds negative fund balance.
Please note in FY24-25 Other Financing Resources included Leases Financing in the amount of $1.3 million and proceed for Sales of Capital Assets $249 thousand with no activity in FY23-24.
Expenditures and Other Financing Uses for the General Fund, including comparative amounts from the preceding year, are shown in the following table:
2025 Percent of 2024 Percent of Increase
Actuals Total Actuals Total (Decrease)
Taxes 83,147$ 66.7% 79,660$ 59.7% 3,487$
Licenses and Permits 2,996 2.4% 2,681 2.0% 314
Fines and Forfeitures 1,439 1.1% 1,423 1.1% 16
Use of Money and Property 5,976 4.8% 5,336 4.0% 639
Intergovernmetal Revenues 1,865 1.5% 1,641 1.2% 224
Charges for Services 16,579 13.3% 16,974 12.7% (395)
Other Revenues 5,639 4.5%5,867 4.5%(228)
Total Revenues 117,640 94.2% 113,582 85.2% 4,057
Other Financing Sources
Transfers in 5,930 4.7% 19,837 14.9% (13,907)
Leases Financing 1,305 1.0% - 0.0% 1,305
Proceeds for Sale of Capital Assets 250 0.2%-0.0%250
Tota Other Financing Sources 7,485 5.9% 19,837 14.9% (12,352) Total Revenue & Other Financing
Resources 125,124$ 100.1%133,419$ 100.1%(8,295)$ City of Downey
General Fund Revenues and Other Financing Sources
For Fiscal Year Ended June 30, 2025 and 2024
(Amounts Expressed in Thousands)
2025 Percent of 2024 Percent of Increase
Actuals Total Actuals Total (Decrease)
General Government 8,765$ 6.9% 8,896$ 7.7% (131)$
Public Safety 75,988 59.7% 73,623 63.8% 2,365
Public Works 13,055 10.3% 12,288 10.6% 766
Community Services 10,802 8.5% 10,885 9.4% (83)
Community Development 5,239 4.1% 4,257 3.7% 983
Capital Outlay 2,631 2.0% 460 0.4% 2,172
Principal retirement 3 0.0%46 0.0%(43)
Total Expenditures 116,483 91.6% 110,455 95.6% 6,029
Other Financing Uses 10,527 8.3%5,147 4.5%5,379
Total Expenditures &
Other Financing Sources 127,010$ 99.9%115,602$ 100.0%11,408$ City of Downey
General Fund Expenditures and Other Financing Uses
For Fiscal Year Ended June 30, 2025 and 2024
(Amounts Expressed in Thousands)
14 The General Fund’s total expenditures, not including Other Financing Sources, increased by $5.6 million or 5.14%, from the previous fiscal year. All departments’ expenditures increased except the expenditures in Capital Outlay and Principal retirement. Changes in expenditures, by function, occurred as follows during the fiscal year ended June 30, 2025:
•Public Safety expenditures increased by $2.3 million, to $75.9 million. The increase is resulting from cost of living adjustment (COLA) increases, general liability insurance premiums and other general administrative expenses.
•Capital Outlay expenditures increased by $1.8 million, to $2.2 million because of increase in SBITA (Subscription Based Information Technology Arrangements). The City implemented GASB Statement No. 96, Subscription Based Information Technology Arrangements in fiscal year ended June 30,2024.
Prior fiscal year the City had one Library Catalog Subscription. For FY24-25 the City’s SBITA increased to a total of 6 which include Land Management Permitting System, Digital Evidence Collection and Storage Processing, Law Enforcement Policy Manual & Daily Training, Firewall Protection, License Plate Software and Computer Aided Dispatch Program Software. Please refer to Note 1 section S and Note 10 for further details. •Community Development expenditures increased by $983 thousand to $5.2 million because of the increase in general liability insurance, pension costs, cost- of- living increase and continuation of comprehensive general plan implementation update.
•Public Works expenditures increased by $766 thousand, to $13.0 million, because of increased maintenance costs in parking structure and facility maintenance, in addition to pension costs and cola increases.
General Fund Budgetary Highlights
The difference between the general fund original budget expenditures and the final amended budget is $3,680,352. •A general fund appropriation decrease of $561,713 with the transfer of five positions from the General Fund to Measure S Public Safety Salaries. The five positions currently funded by Measure S Public Safety are Crime Analyst, Community Service Officer (2), Police Records Specialist I and Safety Dispatcher. •Per the Agenda Memo dated September 24, 2024 City Council approved a general fund appropriation increase of $130,000. A professional service agreement was executed with Tetra Tech BAS, Inc. for engineering services at Rio San Gabriel Park Green, Safe and Active Park Improvement Project CIP23-31. •The City Council approved November 12, 2024, a general fund appropriation increase in the amount of $827,507 due to first quarter adjustments to the Fiscal Year 2024-2025 Adopted Budget. The increases included carryforward of unused amount that were encumbered in prior year in the amount of $613,007 and first quarter budget omissions and adjustments of $214,500. o Prior to COVID-19, the City received $140,000 from the Metropolitan Transportation District in the form of an Active Transportation Program (ATP) grant to fund a bicycle share program. The City executed a contract with a vendor to operate the program before COVID-19. With the onset of COVID-19, the vendor ceased operations and did not resume operations, as a result, the bicycle share program became obsolete.
The City reimbursed Metropolitan Transportation District for the $140,000 ATP grant. o During the budget preparation, the allocation for Gateway Cities Affordable Housing Trust (GCAHT), SCAG and LAFCO dues were omitted in the amount of $47,500 and $27,000. o During Fiscal Year 2023-2024, there were several projects that were expected to be completed by the end of the fiscal year, and, as such, were not budgeted in Fiscal Year 2024-2025. The encumbered amounts needed to carryforward into Fiscal Year 2024-2025. The projects included Land Management Software 1
$38,600, Housing Element $453,700, Consultants for Historic Preservation and Successor Agency/Housing Authority $63,000 and the Fire Department Computer Aided Dispatch (CAD) program $57,707. •Per Agenda Memo dated November 12, 2024 City Council approved a general fund appropriation increase of $268,596. In an effort to increase community safety, a professional service agreement was executed with RMI International, Inc. for dedicated security patrols of city parks after hours. •The City Council approved on November 12, 2024, a professional service agreement with SDI Presence, LLC in the amount of $129,000 for consulting services related to the replacement of the City’s current Enterprise Resource Planning (ERP) system, Tyler Technologies Eden (Eden). Eden’s end of life is approaching March 31, 2027 and a system transition typically requires 2-3 years. The City is required to find a prudent replacement. •Per Agenda Memo dated March 11, 2025 City Council approved an appropriation in the amount of $28,125 to host the America’s Freedom Tribute, mobile Vietnam Veterans Memorial Replica in Downey. The exhibit honors Vietnam Veterans, educates the community, and fosters intergenerational dialogue about sacrifice and service to one’s Country.
•Per Agenda Memo dated March 25, 2025 City Council approved a contract with Go-Gov, Inc. for the new city mobile application in the amount of $30,600. The new mobile application and service request system will streamline requests, enhance communication through multi-channel notifications, increase staff efficiency, promote transparency and ensure the City provides simplified access to services to its residents. •On April 22, 2025 City Council was presented the Fiscal Year 2024-2025 Mid-Year Budget Performance Review which represents the balances and activity for the first and second quarters (July-December). City Council approved an appropriation increase in the amount of $2,735,403. The appropriation will mainly cover Police, Fire, Public Works and Library since they are trending to be over budget this fiscal year. o The primary driver for Police and Fire Departments overage are overtime costs, minimum manning (Fire) and accumulated paid time to retiree and separated employees. Overtime budgeting for public safety continues to be a challenge for Downey as well as many other cities. There are a number of contributing factors to overtime costs including vacancies and training time for new officers. Another significant contributing factor for both departments is the increased cost of material, supplies and services as a result of the inflation experienced over the last couple of years. o Public Works is projected to exceed its budget by nearly $740,000. The significant contributor is Hazard Wasted Disposal related to homeless encampment clean ups, facility maintenance costs, overtime costs and contract services.
o Library is expected to exceed its budget by $106,000 due to costs related to the solar panel operating costs.
•The City Council approved April 8, 2025 a Resolution to increase the compensation for the position of City Attorney in the amount of $13,107. The compensation was a one-time salary adjustment of 11%. Following this adjustment, the City Attorney position will receive all other cost of living adjustments consistent with the City’s other Executive Management positions.
In the functional expenditure categories actual expenditures of $116.1 million were $7.6 million less than final budgeted amount. The Finance department was $7.5 million under the actual expenditures as opposed to budget.
In addition, actual revenue exceeded budgetary estimates, by $2.2 million, bringing actual revenue at June 30, 2025 to $117.6 million. The key reason for increase in budget is the city underestimated revenues from transient occupancy tax, utility user taxes, building and construction permits, police concealed weapon permits, use of money and property, paramedic fees and other taxes.
1
Financial Analysis of the Other Major Funds
Housing Authority
The Housing Authority Special Revenue Fund account for revenues generated by housing assets received from former redevelopment agency. The total revenue generated in fiscal year 2024-25 was $254 thousand. The Housing Authority miscellaneous revenues of $71 thousand decreased by $38 thousand. These revenues are derived from housing loan repayments. Decrease in homeowners who sold their homes during the year also decreased the number of homeowners paying down their loan. Additionally, interest income reported for the fund was $181 thousand an increase of $39 thousand over last year. Total expenditures for the Housing Authority Fund were $12 thousand dollars. The fund balance of $4.3 million is restricted for low-and moderate-income housing. The fund balance increased by $240 thousand primarily due to collection in subsidy loans and interest revenues.
CIP Grant Fund
The CIP Grant fund is used to account for the majority of City capital improvement projects funded from various federal, state and local sources such as Caltrans, Metropolitan Transit Authority and joint ventures with the Downey Unified School District and surrounding Cities.
The CIP grant had expenditures of $2.6 million and grant revenues of $1.6 million. The net decrease in fund balance is $1 million. The decrease in fund balance is primarily due to reimbursements from various agencies were not received within the 90-day timeframe. Revenues not collected within the 90-day period after the city closed its books are booked as unavailable revenues.
As of June 30, 2025, the CIP Grant fund has a negative fund balance of $3.4 million. However, this is offset by the $3.8 million of unavailable revenues. The unavailable revenues are expected to be received in the future, which will eventually cover the negative fund balance.
Below is a description and amount of expenditures for the key projects. •$639 thousand Space Shuttle Mock Up “Inspiration”
•$526 thousand Columbia Memorial Space Center Improvements •$451 thousand Citywide Transit Priority System
•$377 thousand Inspiration Space Shuttle Education Building •$321 thousand Woodruff Pavement Rehabilitation Project •$141 thousand Rio San Gabriel Accessible Play
Expenditures during the year also included other projects such as Lakewood Blvd at Florence Intersection Improvement, Firestone Blvd and Lakewood Blvd Intersection, Lakewood Blvd at Imperial Intersection Improvement, Paramount Blvd at Imperial Intersection Improvement and Bicycle Master Plan and Street Improvements.
1
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City's investment in capital assets for its government and business-type activities at June 30, 2025 amounted to $412.3 million, net of accumulated depreciation. This investment in capital assets includes land, projects in progress, buildings, equipment, fixtures and infrastructures. The total increase over prior fiscal year in the City’s investment in capital assets was $26.9 million or a 7% increase. The increase is primarily due to projects in progress that were capitalized during the year, mainly in the categories of infrastructures and machinery and equipment.
Major capital asset transactions during the current fiscal year included the following:
•Projects in progress and infrastructure increased respectively by $13.9 million and $26.8 million. The increase is mainly from on-going capital projects and the capitalization of Residential Street Pavement Rehabilitation projects.
•The projects in progress added during the year amounted to $33.6 million minus the capitalized amount of $19.1 million. The net effect is an increase of $14.5 million, leaving a balance of $47.6 million in projects in progress as of June 30, 2025. The capitalized amount of $19.1 million are:
o Residential Street Pavement Rehabilitation (Area 7) – $5.5 million o Residential Street Pavement Rehabilitation (Area 5) – $4.4 million o Citywide Transit Priority System – $2.6 million
o Downey Ave Water System Improvement - $1.6 million
o Lakewood Blvd Between Century and Gardendale - $1.2 million o Alley North of Foster Road Pavement Rehabilitation - $943 thousand o Western Avenue Water System Improvement 5th-Florence - $692 thousand o HVAC Improvement at Barbara J Riley Senior Center - $599 thousand o Lakewood Traffic Signal Upgrades – $581 thousand
o Miscellaneous Concrete Repairs and ADA Improvements – $350 thousand o Lakewood Blvd Parkway Improvements - $233 thousand
o Safety Improvement Program – $207 thousand
o Fire Station 1 Parking Lot Concrete Replacement - $167 thousand o Fire Station 1 Modernization - $44 thousand
•Infrastructures increased by $11.7 million, mainly due to the street and traffic safety improvements. •Buildings and Lease Assets decreased because of depreciation during the year. 2025 2024 2025 2024 2025 2024
Land and Improvements 26,361$ 26,361$ 10,754$ 10,754$ 37,115$ 37,115$ Projects in Progress 38,975 27,017 8,578 6,548 47,553 33,565 Water Rights - - 4,291 4,291 4,291 4,291 Buildings 53,731 54,791 4,903 5,075 58,634 59,866 Land Improvements 17,143 18,347 122 147 17,265 18,494 Machinery & Equipment 11,965 9,841 640 680 12,605 10,521 Furniture & Fixtures - - 1,028 823 1,028 823 Lease Assets 2,375 2,286 297 404 2,672 2,690 Subscription Asset 1,298 552 - - 1,298 552 Infrastructures 170,366 158,231 59,533 59,902 229,899 218,133 Total Capital Assets 322,214$ 297,426$ 90,146$ 88,624$ 412,360$ 386,050$ City of Downey
Summary of Captial Assets (Net of Depreciation)
For Fiscal Year Ended June 30, 2025 and 2024
(Amounts Expressed in Thousands)
Governmental Activities Business-Type Activities Total
1
•Subscription Asset increased this fiscal year to a total of 6 subscriptions. Whereas during the implementation of GASB Statement No. 96 during fiscal year ending June 30, 2024 only one subscription was implemented as part of Subscription Based Information Technology Arrangements (SBITA).
Additional information on the City's assets can be found in the notes to basic financial statements in note 11.
Long-Term Liabilities
Total outstanding long-term debt on June 30, 2025 is $184.9 million, a decrease of $9.3 million from the prior fiscal year.
Long-term debt-related events during the fiscal year ended June 30, 2025 included:
•Bonded debt reductions by $8 million from debt service payments and amortizations of premiums and discounts.
As of June 30, 2025, the total bonded debt balance is $175 million. •Liability from financed purchases decreased by $834 thousand, leaving a balance of $2.4 million as of June 30, 2025.
•The City leases vehicles owned by Enterprise Fleet Management with terms range from 2.92 years to 5 years as of the contract commencement date. As of June 30, 2025, the value of the lease liability is $2 million and the total combined value of the short-term lease liability is $696 thousand. •As of June 30, 2025, the total combined value of subscription liability is $1 million, and the total combined value of the short-term subscription liability is $518 thousand. •Loans payable decreased by $900 thousand. The balance as of June 30, 2025 is $4 million.
Additional information on the City's long-term liabilities can be found in Note 12 of the Notes to Basic Financial Statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The United States economy is showing mixed signals. Inflations is slightly higher than the targeted Federal Reserve rate and labor market is indicating a slowdown. However, Growth Domestic Product (GDP) that provides US economy’s actual productivity and growth over time is indicating strong economic expansion.
The consumer price index (CPI) from September 2024 to September 2025 rose by 3 percent. The CPI is an economic indicator to track inflation. The U.S. Federal Reserve Targets a 2 percent inflation rate. The 3% inflation is higher than the targeted Federal Reserve target but is considered manageable.
Balance Balance
June 30, June 30, Due Within
2024 Additions Reduction 2025 One-Year
Bond 183,555$ -$8,191$ 175,364$ 7,995$ Financed Purchases 3,187 - 834 2,353 853 Lease Payable 2,056 819 841 2,034 696 Subscription Payable 324 1,305 628 1,001 518
Loans Payable 5,092 -903 4,189 928
Total 194,214$ 2,124$ 11,397$ 184,941$ 10,990$ City of Downey
Summary of Changes in Long-Term Liabilities
(Amounts Expressed in Thousands)
1 The ADP job reports the U.S. labor market slowdown increased in November 2025 as private companies cut 32,000 jobs. The main job losses were within the small business sector.
Gross Domestic Product (GDP) increased at an annual rate of 3.8 percent in the second quarter of 2025 (April, May and June) according to the third estimate released by the U.S. Bureau of Economic Analysis. Economists suggest the ideal growth for the U.S. economy should be 2% to 3% per year. A 3.8% increase is considered a strong rate of economic expansion.
Housing affordability in California remains a challenge. The Los Angeles County Recorder shows a 0.15% decrease in median price of a single-family home in Downey from $835,000 to $833,750 between January 2024 and July 2025. The number of home sales fell 10.89 % to 368 when compared to 2023 year’s total of 413. This trend highlights that while home prices slightly decreased in Downey, sales volumes have declined, reflecting stabilization rather than expanding market. The City of Downey anticipates modest growth in property tax revenue for FY 2025–2026, primarily driven by incremental assessed value adjustments under Proposition 13.
HDL Companies specialize in Sales Tax Forecasting anticipate a moderate growth of 1.2% to 2.7% for fiscal years 2025-26 and 2026-27, respectively. HDL states that consumer spending on taxable goods remain steady. However, they do note that tariff concerns and rising unemployment may pose a risk to continued growth. But the response from the Federal Reserve’s recent interest rate reduction in September 2025 signals a responsive monetary policy to stabilize economic conditions.
Separately, it’s important to note that Downey’s sales tax rate increased from 10.00% to 10.50% effective April 1, 2025, following the passage of Measure D and the County’s Measure A. These measures, approved by voters in November 2024, both added a 0.25% local sales tax dedicated primarily to public safety services (Measure D) and Homeless Services (Measure A). Looking ahead, the City anticipates modest sales tax revenue growth for FY2025-26, tempered by national economic uncertainties, including potential federal tariff impacts and cautious consume spending. The City will continue to invest in Downey’s commercial corridors and proactive engagement with the business community will be essential to sustain momentum and ensuring long term revenue stability
The City has focused on strengthening its long-term Fiscal health by using a conservative approach and building its reserves to accomplish its strategic goals. To ensure long-term fiscal viability, the City has made substantial changes to compensation, retirement, and healthcare structure; sought federal, state, local and private funding for projects to support our parks, space center library, police, fire, water, and community development needs; and supported state and federal legislation to increase funding for infrastructure projects.
Longstanding infrastructure and maintenance projects will update City facilities and ensure viability for the next 20-30 years, thanks to funds from Downey’s Measure S, the County’s Measure M and R, and the State’s SB 1.
Specifically, Measure S monies was used to modernize numerous parks and city facilities, the 2017 transportation funds and local sales tax dollars have helped to stabilize infrastructure resources over the next twenty to thirty years. Additionally, the City’s bond issuance using Measure M and Measure R funds helped accelerate projects and limit future increased construction costs. Additionally, the City maximized one-time federal revenue dollars such as ARPA funds, to advance City infrastructure creating generational impacts.
Downey is on a sustainable long-term path in terms of state-of-the art infrastructure repair and regional economic development opportunities that will have tremendous impacts for decades. These include the redevelopment of the Rancho Los Amigos South Campus, expansion of the Columbia Memorial Space Center, development of the City’s “Back 20” and the development of the Southeast Gateway Line (former known as the West Santa Ana Branch Corridor Light Rail) and the Gardendale station in Downey. Water Improvements focused on projects like the Furman Park recycled water main extension. Incorporating these various projects and future legacy projects, the City completes long-range revenue and expenditure projections to assist with this effort of financial stewardship.
As the City remains focused on long-term infrastructure and economic development efforts, the City is also proactively exploring methods of expanding its revenue base to support and enhance services.
Fees for Services
It is important to note that the City annually reviews all of its fees for services to ensure, when possible, fees collected fully support the cost of providing City services. In June 2024, the City adopted a new fee schedule based on a third-party cost allocation and user fee study which updated the rates for FY 2024-25. The fees were adjusted June 2025 based on the CPI for the Los Orange-Riverside Metropolitan Statistical area. An exception to this annual adjustment are those fees set by state statue or fees recently adopted that are already at full cost recovery.
Utility Rates
The City’s water rates were last increased in July 2015. The water rates remain unchanged for the first part of fiscal year 2025-26. The City is currently in the process of implementing new water rates by initiating Proposition 218 proceedings. This action was approved by City Council on November 18, 2025. A new water rate is anticipated to be official by January 14, 2026, once Proposition 218 hearings are concluded, and City Council approval is obtained.
The City of Downey has long enjoyed the lowest water rates in the region. A lot of this can be attributed to the fact that Downey’s water quality has been good over the years and that no disinfection of the water is necessary before it enters the distribution system. Currently, the average single-family residence in Downey pays $29.95 for the water it consumes on a monthly basis. The new proposed rates will increase this monthly average to $44.86 over a 5-year period. These rate increases are necessary in order to pay for growing inflation costs, building capital reserves to pay for the ongoing upgrades and critical back-up generation projects, and for the new PFAS treatment system.
Fiscal Year 2025-2026 Budget Adoption
On June 24, 2025, the City Council adopted and approved FY 2025-26 budget with total appropriation of $325 million. 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. Adequate resources are available to fund the proposed expenditures.
The General Fund portion of the budget is $116 million in operating expenditures based upon estimated General Fund revenues of $116 million. Overall, Fiscal Year 2025-2026 General Fund Revenue is projected to be $116,224,088 which is 8% percent lower than the Fiscal Year 2024-2025 Adopted budget It should be noted that in effort to enhance transparency and accounting of Measure S monies, Measure S is no longer included in the City’s General Fund and is now listed under its own Special Revenue Measure S Operating Fund. Previously, Measure S had accounted for approximately 10.8% of the General Fund revenues. When accounting for the change in funds, the proposed General Fund revenue is an increase of 3.5%.
The 3.5% increase in revenues over FY24-25 will allow for added expenditures related to MOU increases, the filling of vacancies and new positions.
REQUESTS FOR INFORMATION
This financial report is designated to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Department of Finance , City of Downey, 11111 Brookshire Avenue, Downey, California 90241-0607.
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22 CITY OF DOWNEY, CALIFORNIA
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 126,027,966$ 23,849,235$ 149,877,201$ Receivables (net of uncollectibles):
Accounts 5,546,189 9,503,775 15,049,964
Taxes 10,168,500 - 10,168,500
Accrued interest 1,024,582 - 1,024,582
Due from other governments 4,726,836 21,050 4,747,886 Notes and loans 12,822,892 - 12,822,892
Leases 19,127,636 658,346 19,785,982
Internal balances 6,391,362 (6,391,362) -
Cash with fiscal agent 4,368,726 - 4,368,726
Advances to Successor Agency 8,608,436 - 8,608,436
Inventories 94,666 331,442 426,108
Prepaid costs 2,637,913 14,182 2,652,095
Capital assets (not being depreciated/amortized)65,335,947 23,622,903 88,958,850 Capital assets (net of accumulated depreciation/amortization)256,878,788 66,522,300 323,401,088 Total assets 523,760,439 118,131,871 641,892,310
DEFERRED OUTFLOWS OF RESOURCES
Pension-related 32,569,402 386,218 32,955,620
OPEB-related 4,526,069 - 4,526,069
Total deferred outflows of resources 37,095,471 386,218 37,481,689
LIABILITIES
Accounts payable 12,527,356 3,845,855 16,373,211
Due to other governments 5,365 - 5,365
Accrued liabilities 2,837,816 439,134 3,276,950
Accrued interest - 26,401 26,401
Deposits payable 5,307,389 67,540 5,374,929
Unearned revenue 8,195,025 137,779 8,332,804
Noncurrent liabilities:
Due within one year:
Long-term debt 9,040,670 735,368 9,776,038
Compensated absences 4,576,914 159,715 4,736,629
Claims and judgments 5,624,000 - 5,624,000
Leases payable 574,477 121,672 696,149
Subscriptions payable 518,196 - 518,196
Net OPEB liability 1,003,700 - 1,003,700
Due in more than one year:
Long-term debt 167,631,027 4,498,589 172,129,616
Compensated absences 7,154,341 419,942 7,574,283
Claims and judgments 22,263,000 - 22,263,000
Leases payable 1,111,757 225,747 1,337,504
Subscriptions payable 483,028 - 483,028
Net pension liability 128,120,832 1,979,690 130,100,522 Net OPEB liability 8,106,777 - 8,106,777
Total liabilities 385,081,670 12,657,432 397,739,102
DEFERRED INFLOWS OF RESOURCES
Pension-related 244,587 - 244,587
OPEB-related 1,297,763 - 1,297,763
Lease-related 18,449,379 644,848 19,094,227
Total deferred inflows of resources 19,991,729 644,848 20,636,577
NET POSITION
Net investment in capital assets 252,095,462 88,120,118 340,215,580 Restricted:
Public safety 1,319,851 - 1,319,851
Community development 954,139 - 954,139
Public works 30,802,308 - 30,802,308
Capital projects - 7,138,640 7,138,640
Debt service 178,358 - 178,358
Low & mod income housing 6,065,960 - 6,065,960
Unrestricted (135,633,567) 9,957,051 (125,676,516)
Total net position 155,782,511$ 105,215,809$ 260,998,320$ June 30, 2025
Primary Government
See Notes to Financial Statements. 23
CITY OF DOWNEY, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2025
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:
Primary government:
Governmental activities:
General government 9,686,209$ 12,066,616$ 1,814,848$ -$ Public safety 102,491,117 8,012,813 780,445 - Community Development 9,545,701 1,741,191 - 1,154,955 Community services 14,674,240 2,740,503 - - Public works 21,687,419 4,248,864 6,181,771 - Interest on long-term debt 5,334,062 - --
Total governmental activities 163,418,748 28,809,987 8,777,064 1,154,955 Business-type activities:
Water Fund 18,541,496 24,749,933 - -
Golf Fund 3,859,766 4,991,929 - -
Sewer and Storm Drain 2,967,166 1,599,833 - - Total business-type activities 25,368,428 31,341,695 - - Total primary government 188,787,176$ 60,151,682$ 8,777,064$ 1,154,955$ General revenues and transfers:
General revenues:
Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Utility users tax
Other taxes
Retail transactions and use tax
Use of money and property
Other
Gain (loss) on sale of capital asset
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning
Net position-beginning, as restated
Net position-ending
Program Revenues
Restatements - changes in accounting principle and
error correction
See Notes to Financial Statements. 24
Governmental Business-Type
Activities Activities Total
4,195,255$ -$ 4,195,255$
(93,697,859) - (93,697,859)
(6,649,555) - (6,649,555)
(11,933,737) - (11,933,737)
(11,256,784) - (11,256,784)
(5,334,062) - (5,334,062)
(124,676,742) - (124,676,742)
- 6,208,437 6,208,437
- 1,132,163 1,132,163
- (1,367,333) (1,367,333)
- 5,973,267 5,973,267
(124,676,742) 5,973,267 (118,703,475)
37,830,477 - 37,830,477
38,303,603 - 38,303,603
2,502,551 - 2,502,551
3,791,443 - 3,791,443
10,385,165 - 10,385,165
3,846,914 - 3,846,914
14,408,313 - 14,408,313
8,294,266 1,464,227 9,758,493
6,252,709 7,956 6,260,665
57,535 49,096 106,631
897,455 (897,455) -
126,570,431 623,824 127,194,255
1,893,689 6,597,091 8,490,780
147,419,453 98,509,068 245,928,521 6,469,369 109,650 6,579,019
153,888,822 98,618,718 252,507,540 155,782,511$ 105,215,809$ 260,998,320$
Primary Government
Net (Expenses) Revenues and
Changes in Net Position
See Notes to Financial Statements. 25
CITY OF DOWNEY, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2025
Special
Revenue Fund
Capital
Projects Fund
Total Total
Nonmajor Governmental
General Funds Funds
ASSETS
Pooled cash and investments 45,223,143$ 3,275,353$ 79,777$ 54,085,434$ 102,663,707$ Receivables (net of allowance for uncollectible):
Accounts 1,521,899 - 3,292,537 724,964 5,539,400 Taxes 6,059,272 - - 4,109,228 10,168,500
Accrued interest 651,211 373,371 - - 1,024,582 Notes and loans 756,982 7,215,187 - 4,850,723 12,822,892 Leases 19,127,636 - - - 19,127,636
Due from other funds 2,984,462 - - - 2,984,462
Inventories - - - 10,537 10,537
Prepaid costs 405,169 - - 2,206,847 2,612,016 Due from other governments 2,368,654 - 997,761 1,360,421 4,726,836 Restricted assets:
Cash and investments with fiscal agents 297,273 - - 4,071,453 4,368,726 Advances to Successor Agency 7,297,410 1,311,026 - - 8,608,436 Total assets 86,693,111$ 12,174,937$ 4,370,075$ 71,419,607$ 174,657,730$
LIABILITIES
Accounts payable 3,412,864$ -$ 895,303$ 8,105,598$ 12,413,765$ Accrued liabilities 1,887,709 - 22,071 861,447 2,771,227 Unearned revenues 187,450 - 2,697,690 5,309,885 8,195,025 Deposits payable 4,848,589 - -- 4,848,589
Due to other governments - - - 5,365 5,365
Due to other funds - - 395,595 2,588,867 2,984,462 Total liabilities 10,336,612 - 4,010,659 16,871,162 31,218,433
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - 7,588,558 3,803,162 4,941,645 16,333,365 Deferred inflows for leases 18,449,379 - - - 18,449,379 Total deferred inflows of resources 18,449,379 7,588,558 3,803,162 4,941,645 34,782,744
FUND BALANCES (DEFICITS)
Nonspendable 8,459,561 - - 2,217,384 10,676,945 Restricted - 4,586,379 - 34,734,237 39,320,616
Assigned 49,334,179 - - 12,960,198 62,294,377
Unassigned 113,380 - (3,443,746) (305,019) (3,635,385) Total fund balances (deficits) 57,907,120 4,586,379 (3,443,746) 49,606,800 108,656,553 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 86,693,111$ 12,174,937$ 4,370,075$ 71,419,607$ 174,657,730$ Housing
Authority
CIP Grant
Fund
See Notes to Financial Statements.26
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2025
Amounts reported for governmental activities in the Statement of Net Position are different because:
Total fund balances - governmental funds 108,656,553$
318,216,090
Deferred outflows-pension related 32,527,329
Deferred outflows-OPEB related 4,526,069
Deferred inflows-pension related (244,587)
Deferred inflows-OPEB related (1,297,763)
Total deferred outflows and inflows related to postemployment benefits 35,511,048 Long-term receivables 16,333,365
Total other long-term assets 16,333,365
16,260,032
Bonds payable (169,027,940)
Leases payable (677,581)
Subscriptions payable (1,001,224)
Compensated absences (3,571,368)
Claims payable (20,511,582)
Accrued interest payable on long-term debt (458,800)
Net pension liability (127,905,166)
Net OPEB liability (9,110,477)
Total long-term liabilities (332,264,138)
Bond premiums 71,093
Bond discounts (7,001,532)
Total premiums, discounts, and deferred items (6,930,439) Net position of governmental activities 155,782,511$
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.
Governmental funds report the effect of premiums, discounts, and refundings and similar items when debt is first issued, whereas, these amounts are deferred and amortized in the Statement of Activities.
CITY OF DOWNEY, CALIFORNIA
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.
Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds.
Internal service funds provide services to other funds on a cost-reimbursement basis. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities.
See Notes to Financial Statements. 27
CITY OF DOWNEY, CALIFORNIA
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
Special
Revenue
Funds
Capital
Projects Fund
Total Total
Nonmajor Governmental
General Funds Funds
REVENUES
Taxes 83,147,011$ -$ -$ 27,921,455$ 111,068,466$ Licenses and permits 2,995,661 - - - 2,995,661 Intergovernmental 1,864,856 - 1,641,222 6,725,306 10,231,384 Charges for services 16,579,293 - - 2,843,716 19,423,009 Use of money and property 5,975,544 181,853 2,132 2,134,737 8,294,266 Fines and forfeitures 1,438,599 - - 3,462,692 4,901,291 Developer participation - - - 1,815,806 1,815,806 Miscellaneous 5,638,592 71,875 - 368,791 6,079,258 Total revenues 117,639,556 253,728 1,643,354 45,272,503 164,809,141
EXPENDITURES
Current:
General government 8,765,067 - - 190,353 8,955,420 Public safety 75,988,428 - - 7,262,954 83,251,382 Community development 5,239,224 12,765 - 3,104,720 8,356,709 Community services 10,801,607 - - 1,403,511 12,205,118 Public works 13,054,631 - - 5,489,292 18,543,923 Capital outlay 2,631,366 - 2,678,490 29,437,608 34,747,464 Debt service:
Principal retirement 3,000 - - 8,644,280 8,647,280 Interest expense and fiscal charges - - - 5,539,688 5,539,688 Total expenditures 116,483,323 12,765 2,678,490 61,072,406 180,246,984 Excess (deficiency) of revenues
over (under) expenditures 1,156,233 240,963 (1,035,136) (15,799,903) (15,437,843)
OTHER FINANCING SOURCES (USES)
Transfers in 5,930,048 - - 21,027,877 26,957,925 Transfers out (10,526,710) - - (15,533,760) (26,060,470) Leases financing 1,648,857 - - 474,774 2,123,631 Proceeds for Sale of Capital Assets 249,596 - - - 249,596 Total other financing sources (uses) (2,698,209) - - 5,968,891 3,270,682 Net change in fund balances (1,541,976) 240,963 (1,035,136) (9,831,012) (12,167,161) Fund balances (deficit)-beginning 59,125,098 4,345,416 (2,408,610) 59,437,812 120,499,716 Restatements-error correction 323,998 - - - 323,998 Fund balances (deficit)-beginning, as restated 59,449,096 4,345,416 (2,408,610) 59,437,812 120,823,714 Fund balances (deficit)-ending 57,907,120$ 4,586,379$ (3,443,746)$ 49,606,800$ 108,656,553$ Housing
Authority
CIP Grant
Fund
See Notes to Financial Statements.28
Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2025
Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - total governmental funds:(12,167,161)$ Capital outlay 34,560,405
Depreciation/amortization expense (8,728,451)
Disposal of capital assets (701,290)
Total adjustment 25,130,664
Earned but unavailable grant revenues 268,374
Total adjustment 268,374
Leases issued (474,774)
Lease repayments 299,955
Subscriptions issued (1,305,075)
Subscription repayments 627,849
Amortization of bond premiums and discounts 396,317
Principal payments 8,644,280
Total adjustment 8,188,552
(2,122,433)
Accrued interest on long-term debt 10,325
Compensated absences (767,135)
Claims and judgments (1,499,000)
Changes in pension liabilities and related deferred outflows and inflows of resources (15,028,100) Changes in OPEB liabilities and related deferred outflows and inflows of resources (120,397) Total adjustment (17,404,307)
Change in net position of governmental activities 1,893,689$ Internal service funds provide services to other funds on a cost-reimbursement basis. The net revenue of certain activities of internal service funds is reported with governmental activities.
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.
CITY OF DOWNEY, CALIFORNIA
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense, disposals of capital assets are not recognized at the governmental fund level. This is the amount by which capital outlays exceeded depreciation/amortization expense, and the adjustment to gains(losses) for disposal of capital assets, in the current period.
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
See Notes to Financial Statements. 29
CITY OF DOWNEY, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2025
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds
ASSETS
Current assets:
Cash and investments 8,353,785$ 7,162,747$ 8,332,703$ 23,849,235$ 23,364,259$ Receivables:
Accounts 9,104,539 - 399,236 9,503,775 6,789 Leases - 143,510 - 143,510 - Prepaid costs 11,582 - 2,600 14,182 25,897 Due from other governments 1,000 20,050 - 21,050 - Inventories 331,442 - - 331,442 84,129 Total current assets 17,802,348 7,326,307 8,734,539 33,863,194 23,481,074 Noncurrent:
Leases recceivable - 514,836 - 514,836 - Capital assets, net of accumulated depreciation/amortization 52,768,386 13,521,879 23,854,938 90,145,203 3,998,645 Total noncurrent assets 52,768,386 14,036,715 23,854,938 90,660,039 3,998,645 Total assets 70,570,734 21,363,022 32,589,477 124,523,233 27,479,719
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items 271,097 - 115,121 386,218 42,073 Total deferred outflows of resources 271,097 - 115,121 386,218 42,073
LIABILITIES
Current liabilities:
Accounts payable 3,422,351 184,381 239,123 3,845,855 113,591 Accrued liabilities 352,426 2,730 83,978 439,134 66,589 Accrued Interest 6,529 18,038 1,834 26,401 - Unearned revenue - 137,779 - 137,779 - Deposits payable 67,540 - - 67,540 - Leases payable - 121,672 - 121,672 369,429 Accrued compensated absences 150,007 - 9,708 159,715 3,183,609 Accrued claims payable - - - - 3,658,000 Bonds, notes, and loans payable 125,191 575,000 35,177 735,368 22,385 Total current liabilities 4,124,044 1,039,600 369,820 5,533,464 7,413,603 Noncurrent liabilities:
Accrued compensated absences 346,978 - 72,964 419,942 4,976,278 Accrued claims payable - - - - 3,717,418 Leases payable - 225,747 - 225,747 639,224 Bonds, notes, and loans payable 3,047,337 595,000 856,252 4,498,589 690,933 Net pension liability 1,389,601 - 590,089 1,979,690 215,666 Total noncurrent liabilities 4,783,916 820,747 1,519,305 7,123,968 10,239,519 Total liabilities 8,907,960 1,860,347 1,889,125 12,657,432 17,653,122
DEFERRED INFLOWS OF RESOURCES
Related to leases - 644,848 - 644,848 - Total deferred inflows of resources - 644,848 - 644,848 -
NET POSITION
Net investment in capital assets 52,500,541 12,004,460 23,615,117 88,120,118 1,835,294 Restricted for capital projects - - 7,138,640 7,138,640 - Unrestricted 9,433,330 6,853,367 61,716 16,348,413 8,033,376 Total net position 61,933,871$ 18,857,827$ 30,815,473$ 111,607,171 9,868,670$ Adjustment to report the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time (6,391,362) Net position of business-type activities 105,215,809$
Business-Type Activities
Water Fund Golf Fund
Sewer and
Storm Drain
See Notes to Financial Statements.30
CITY OF DOWNEY, CALIFORNIA
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2025
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds
OPERATING REVENUES
Sales and service charges 17,263,391$ 4,991,929$ 1,599,833$ 23,855,153$ -$ Interdepartmental charges - - - - 6,115,125 Miscellaneous 7,487,700 - 6,798 7,494,498 284,068 Total operating revenues 24,751,091 4,991,929 1,606,631 31,349,651 6,399,193
OPERATING EXPENSES
Purchased water 6,607,097 - - 6,607,097 - Maintenance and operations 7,436,711 3,375,839 294,503 11,107,053 2,795,367 General and administrative 3,183,611 136,476 1,065,264 4,385,351 427,764 Employee benefits 4,106 - - 4,106 4,772,821 Depreciation/amortization 1,176,367 302,465 1,585,134 3,063,966 615,015 Total operating expenses 18,407,892 3,814,780 2,944,901 25,167,573 8,610,967 Operating income (loss) 6,343,199 1,177,149 (1,338,270) 6,182,078 (2,211,774)
NONOPERATING REVENUES (EXPENSES)
Interest income 388,292 668,786 407,149 1,464,227 - Interest expense (79,233) (44,986) (22,265) (146,484) (22,565) Gain (loss) on disposal of capital assets 49,096 - - 49,096 57,535 Total nonoperating revenues (expenses) 358,155 623,800 384,884 1,366,839 34,970 Income (loss) before capital contributions and transfers 6,701,354 1,800,949 (953,386) 7,548,917 (2,176,804) Transfers In - - 2,545 2,545 - Transfers out (900,000) - - (900,000) - Change in net position 5,801,354 1,800,949 (950,841) 6,651,462 (2,176,804) Net position-beginning 56,089,954 17,056,878 31,699,227 7,554,408 Restatements 42,563 - 67,087 4,491,066 Net position-beginning, as restated 56,132,517 17,056,878 31,766,314 12,045,474 Net position-ending 61,933,871$ 18,857,827$ 30,815,473$ 9,868,670$ Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds (54,371) Changes in net position of business-type activities 6,597,091$ Business-Type Activities
Water Fund Golf Fund
Sewer and
Storm Drain
See Notes to Financial Statements.31
CITY OF DOWNEY, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Governmental
Activities
Internal
Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 12,359,888$ 5,030,769$ 1,575,597$ 18,966,254$ 6,109,265$ Payments to suppliers and service providers (2,673,694) (3,397,529) (69,028) (6,140,251) (7,478,626) Payments to employees for salaries and benefits (13,882,741) (136,476) (1,013,816) (15,033,033) - Other receipts (payments)7,487,700 - - 7,487,700 (474,682) Net cash provided by (used for)
operating activities 3,291,153 1,496,764 492,753 5,280,670 (1,844,043)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds - - 2,545 2,545 -
Transfers to other funds (900,000) - - (900,000) - Principal paid on non-capital debt (125,810) - (35,351) (161,161) (22,496) Interest paid on on-capital debt (79,316) - (22,287) (101,603) (22,566) Operating grants and contributions - 39,837 - 39,837 6,664 Net cash provided by (used for)
noncapital financing activities (1,105,126) 39,837 (55,093) (1,120,382) (38,398)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (3,898,336) - (685,913) (4,584,249) (387,443) Principal paid on capital debt - (666,619) - (666,619) (578,439) Interest paid on capital debt - (44,986) - (44,986) -
Proceeds(loss) from sales of assets 49,096 - - 49,096 57,535 Net cash provided by (used for)
capital and related financing activities (3,849,240) (711,605) (685,913) (5,246,758) (564,565)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 388,292 660,307 407,149 1,455,748 - Net cash provided by (used for)
investing activities 388,292 660,307 407,149 1,455,748 - Net increase (decrease) in
cash and cash equivalents (1,274,921) 1,485,303 158,896 369,278 (2,447,006) Cash and cash equivalents-beginning 9,628,706 5,677,444 8,173,807 23,479,957 25,811,265 Cash and cash equivalents-ending 8,353,785$ 7,162,747$ 8,332,703$ 23,849,235$ 23,364,259$ Business-Type Activities
Water Fund Golf Fund
Sewer and
Storm Drain
See Notes to Financial Statements.32
CITY OF DOWNEY, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Governmental
Activities
Internal
Totals Service Funds
Business-Type Activities
Water Fund Golf Fund
Sewer and
Storm Drain
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss)6,343,199$ 1,177,149$ (1,338,270)$ 6,182,078$ (2,211,774)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 1,176,367 302,465 1,585,134 3,063,966 615,015 (Increase) decrease in accounts receivable (4,904,658) - (31,034) (4,935,692) (6,575) (Increase) decrease in leases receivable - (1,351) - (1,351) - (Increase) decrease in inventories 164,859 - - 164,859 15,303 (Increase) decrease in prepaid items (6,931) - (1,050) (7,981) (25,897) Increase (decrease) in accounts payable 351,989 (21,690) 226,525 556,824 (183,199) Increase (decrease) in accrued liabilities 35,736 - 7,370 43,106 5,671 Increase (decrease) in deposits payable 1,155 40,191 - 41,346 - Increase (decrease) in compensated absences 14,955 - 21,563 36,518 3,915 Increase (decrease) in net pension liability 114,482 - 22,515 136,997 (56,502) Total adjustments (3,052,046) 319,615 1,831,023 (901,408) 367,731 Net cash provided by (used for)
operating activities 3,291,153$ 1,496,764$ 492,753$ 5,280,670$ (1,844,043)$ See Notes to Financial Statements.33
Private
Purpose Custodial
Trust Funds Funds
ASSETS
Cash and investments 1,403,302$ 9,602,708$
Receivables:
Accounts - 35,733
Taxes - 5,081
Accrued interest - 4,846
Restricted cash and investments with fiscal agent 643,569 873,196 Due from other governments - 190,953
Capital assets, not being depreciated - 110,490
Capital assets, net of accumulated depreciation - 2,643,065 Total assets 2,046,871 13,583,551
LIABILITIES
Accounts payable - 521,373
Accrued liabilities - 676,541
Accrued interest 48,367 -
Unearned revenues 1,242,516 298
Deposits payable 2,500 57,769
Due to other governments - 38,608
Long-term liabilities
Due in one year
Bonds payable 525,000 -
Due in more than one year
Bonds payable 1,740,000 -
Advances from the City 8,608,436
Advances from the County 40,853,963
Total liabilities 53,020,782 1,294,589
NET POSITION (Deficit)
Restricted for organizations and other governments - 12,288,962 Restricted for other purposes (50,973,911) -
Total net position (50,973,911)$ 12,288,962$
CITY OF DOWNEY, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See Notes to Financial Statements.34
Private
Purpose Custodial
Trust Funds Funds
ADDITIONS
Investment income 34,673$ 534,402$
Taxes 1,330,642 119,249
Intergovernmental - 7,806,644
Miscellaneous 1,384,671 266,212
Total additions 2,749,986 8,726,507
DEDUCTIONS
Benefits - 11,773
Administrative services 152,253 6,746,008
Contractual services 2,616 279,539
Capital outlay - 185,822
Interest expense 2,978,875 -
Depreciation expense - 145,731
Total deductions 3,133,744 7,368,873
Net increase (decrease) in fiduciary net position (383,758) 1,357,634 Net position-beginning (50,590,153) 10,931,328
Net position-ending (50,973,911)$ 12,288,962$
CITY OF DOWNEY, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See Notes to Financial Statements.35
7+,63$*(,17(17,21$//</()7%/$1.
36 Notes to
Basic Financial
Statements
Annual Comprehensive
Financial
Report
Fiscal Year Ended June 30, 2025
37 7+,63$*(,17(17,21$//</()7%/$1.
38 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Description of Entity
The basic financial statements of the City of Downey (the City) include the activities of the City of Downey Public Facilities Financing Corporation (the Corporation) the City of Downey Housing Authority (the Housing Authority) and the City of Downey Public Financing Authority (the Financing Authority).
The City of Downey was incorporated in 1956 under the General Laws of the State of California and became a charter City in 1964. The City operates under a Council-Manager form of government governed by a five-member council and provides the following services: public safety (police, fire, paramedic and ambulance), highways and streets, parks and recreation, public improvements, planning and zoning, and general administrative services.
The criteria used in determining the scope of the reporting entity are based on the provisions of the Governmental Accounting Standards Board (GASB). The City of Downey is the primary government unit.
Component units are those entities which are financially accountable to the primary government, either because the City appoints a voting majority of the component unit’s board, or because the component unit will provide a financial benefit or impose a financial burden on the City. The City has accounted for the Corporation and Housing Authority as “blended” component units. Despite being legally separate, these entities are so intertwined with the City that they are, in substance, part of the City’s operations. Accordingly, these basic financial statements present the City and its component units, the City of Downey Public Facilities Financing Corporation, Housing Authority, and Public Financing Authority. Each blended component unit has a June 30 year end.
The City of Downey Public Facilities Financing Corporation, formerly known as City of Downey Civic Center Corporation, is a non-profit corporation organized June 1, 1981 for the purpose of assisting, through the issuance of revenue bonds, the financing necessary to construct public buildings and facilities for the City. The activities of the Corporation are reported in the proprietary fund financial statements as part of the golf enterprise fund. The Corporation prepares separate Basic Financial Statements and a copy can be obtained from the City’s Finance Department.
The City of Downey Housing Authority was established by the City Council on October 22, 1974 and is responsible for the administration of providing affordable housing in the City. The Housing Authority provides services entirely to the City and is governed by a five-member Board of Director which consists of members of the City Council. The City has operational responsibility over the Housing Authority. The Housing Authority’s financial transactions are reported in the Special Revenue Funds. The Housing Authority does not prepare separate Basic Financial Statements.
The City of Downey Public Financing Authority was created by the City of Downey Public Financing Authority under a Joint exercise of Powers Agreement to assist the Public Financing Authority in financing capital improvement projects, through the issuance of Lease Revenue Bonds. The Authority’s assets and liabilities are presented in the Measure S 2017 LRB fund and Measure M and R Bonds.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government (including its blended component units) is reported separately from discretely presented component units for which the primary government is financially accountable. The City has no discretely presented component units. 39 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Certain eliminations have been made as prescribed by the GASB in regard to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Separate financial statements for the City’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and other funds in the aggregate for governmental and enterprise funds. Fiduciary statements, even though excluded from the government-wide financial statements, include financial information that represent the private purpose trust fund and custodial funds.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and private purpose trust fund financial statements. Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their Statements of Net Position. Operating statements present increases (revenues) and decreases (expenses) in total net position.
Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations.
Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year in which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all the eligibility requirements have been satisfied. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets and deferred outflows of resources and current liabilities and deferred inflows of resources are generally included on the balance sheets. The reported fund balance (net current assets) is considered to be a measure of “available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
40 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. However, special reporting treatments are used to indicate that they should not be considered “available spendable resources” since they do not represent net current assets.
Recognition of governmental fund type revenue represented by noncurrent receivables is reported as deferred inflows of resources.
Under the modified accrual basis of accounting, revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 90 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, except for principal and interest on long-term liabilities, claims and judgments, and compensated absences which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term liabilities are reported as other financing sources.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when the government receives cash.
The City’s Fiduciary Funds consists of the private purpose trust fund which is reported using the economic resources measurement focus and the accrual basis for reporting its assets and liabilities.
D. Fund Classifications
The City reports the following major governmental funds:
• The General Fund is the general operating fund of the City. All general tax receipts and fee revenue not allocated by law, Council policy or contractual agreement to other funds are accounted for in the General Fund.
General Fund expenditures include operations traditionally associated with activities, which are not required to be accounted for or paid by another fund.
• The Housing Authority Fund is used to account for revenues generated by housing assets received from former redevelopment agency and associated expenditures to be used for increasing or improving low- and moderate-income housing.
• The CIP Grant Fund is used to account for revenues received for various street and infrastructure capital improvements.
The City reports the following major proprietary funds:
• The Water Fund is used to account for the provision of water services to residential, commercial and industrial customers.
• The Golf Fund is used to account for all revenues and expenses related to the City - operated golf course, driving range and clubhouse.
• The Sewer and Storm Drain Fund is used to account for charges collected for the upkeep of sanitary sewers and federally required drainage upkeep programs.
41 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The City’s fund structure also includes the following fund types:
• The Special Revenue Funds are used to account for proceeds of specific revenue sources that are legally restricted or otherwise restricted for specific purposes.
• The Debt Service Funds are used to account for the servicing of long-term debt.
• The Capital Projects Funds are used to account for financial resources used for the acquisition or construction of major capital facilities.
• The Internal Service Funds are used to account for the financing of special activities that provide services within the City. These activities include compensation and other employee benefits, and equipment purchase and maintenance.
• The Private-Purpose Trust Fund is used to account for the activities of the Successor Agency to the Community Development Commission of the City of Downey.
• The Custodial Funds are used to account for money and property held by the City as trustee, agent, or custodian.
The City’s fund structure also includes the following departmental classifications:
• General Government Department includes the legislative, city clerk, city attorney, city manager, personnel, finance, purchasing, and information technology divisions.
• Public Safety Department includes police, fire and paramedic, and animal control operations.
• Public Works Department includes maintenance and engineering divisions.
• Community Services Department includes the recreation, theatre, social services, and the library divisions.
• Community Development Department includes planning, redevelopment and building safety divisions.
E. Cash and investments
The City pools idle cash from all funds for purposes of increasing income through investment activities. Investments are stated at fair value (quoted market price or best available estimate thereof). The City intends to either hold the investments until maturity or until market values equal or exceed cost. Interest income on investments is allocated among funds on the basis of average monthly cash and investment balances (see Note 4).
F. Accounts Receivable
The City extends credit to customers in the normal course of operations. The City accounts for potential losses in accounts receivable utilizing the allowance method. Management evaluates all accounts receivable and if it is determined that they are uncollectible they are written off as a bad debt expense.
G. Inventories and Prepaid Items
Inventories are valued at cost on a first-in first-out basis and are accounted for under the consumption method, whereby inventories are capitalized and recorded as expenditures as used. Water Enterprise Fund inventories consist primarily of water pipes, valves, and fittings. Inventories of fuel are recorded in the Equipment Internal Service Fund. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the governmentǦwide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. 42 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. Capital Assets
Capital assets are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated assets and capital assets received in a service concession arrangement would be reported at acquisition value. Generally, capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of 1 year or more.
Capital assets include additions to public domain (infrastructure), certain improvements including pavement, curb and gutter, sidewalks, traffic control devices, streetlights, sewers, bridges and right-of-way corridors within the City.
The City has valued and recorded all infrastructure asset data as of June 30, 2014.
Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the Government-wide Financial Statements and in the Fund Financial Statements of the Enterprise Funds.
Depreciation/amortization is charged as an expense against operations and accumulated depreciation/amortization is reported on the respective Statements of Net Position.
The lives used for depreciation/amortization purposes of each capital asset class are:
Buildings ................................................................................................................................. 50 years Improvements other than buildings ........................................................................................ 20 years Water distribution lines ........................................................................................................... 50 years Water tanks, meters, hydrants, and other equipment .................................................... 15 to 40 years Vehicles ............................................................................................................................ 3 to 15 years Machinery and equipment ................................................................................................ 5 to 10 years Office furniture, computers and equipment ............................................................................. 10 years Infrastructure ................................................................................................................... 20 to 50 years Lease assets ................................................ Shorter of the leased asset’s useful life or the lease term Subscription assets ............................. Shorter of the subscription asset’s useful life or the lease term
I. Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position and governmental balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category, the deferred outflows relating to deferred pension related items, and deferred OPEB related items, reported in the statements of net position. These outflows are the results of contributions made after the measurement period, which are recognized in the following year.
In addition to liabilities, the Statement of Net Position and Governmental Balance Sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. The City has three types of items in this category. One arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenues, is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from two sources: taxes and long-term notes receivable. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second item is in relation to the net pension liability and net OPEB liability, reported in the statement of net position. Gains and losses related to changes in total pension liability, total OPEB liability and fiduciary net position are recognized in pension or OPEB expense systematically over time. Amounts are first recognized in pension or OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pension or OPEB and are to be recognized in future pension or OPEB expense. The third item relates to leases where the City is the lessor and relates to the future payments that will be recognized in future years. 43 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The recognition period differs depending on the source of the gain or loss:
Net difference between projected and actual
earning on pension or OPEB plan investments
5 years
All other amounts Straight-line recognition over the expected average remaining service lifetime (EARSL) of all members that are provided with benefits, determined as of the beginning of the Measurement Period. In determining the EARSL, all active, retired and inactive (vested) members are counted, with the latter two groups having 0 remaining service years.
J. Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.
It is the City’s practice to consider restricted - net position to have been depleted before unrestricted - net position is applied.
K. Fund Balance
The fund balances reported on the fund statements consist of the following categories:
Nonspendable Fund Balance - This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted Fund Balance - This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers or through enabling legislation.
Committed Fund Balance - This classification includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. The governing council is the highest level of decision-making authority for the government that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation.
Assigned Fund Balance - This classification includes amounts intended to be used by the government for specific purposes but do not meet the criteria to be classified as committed. The governing council (council) has authorized the finance director to assign fund balance. The council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.
Unassigned Fund Balance - This classification includes the residual balance for the government’s general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balance first. 44 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
When an expenditure is incurred for purposes for which committed, assigned or unassigned fund balances are available, the City’s policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance.
L. Compensated Absences
The City is obligated to pay all unused vacation to all employees. All vacation is accrued when incurred in the government-wide and proprietary fund financial statements. Governmental fund types recognize the vested vacation time as an expenditure in the current year to the extent it is paid during the year.
M. Claims and Judgments
Expenditures for claims and judgments are recognized when it is probable that the liability has been incurred at year-end and the amount of the loss can be reasonably estimated. Claims payable, which will be liquidated from current resources, are recorded in the General Fund and Internal Service Funds.
N. Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.
The liability for pension-related debt is fully liquidated by the general fund.
GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD): June 30, 2023
Measurement Date (MD): June 30, 2024
Measurement Period (MP): July 1, 2023 to June 30, 2024
O. Other Post-Employment Benefits (OPEB) Liability
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan), the assets of which are held by the California Employers’ Retiree Benefit Trust Program (CERBT), and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. The liability for opeb-related debt is fully liquidated by the general fund.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD) June 30, 2023
Measurement Date (MD) June 30, 2024
Measurement Period (MP) July 1, 2023 to June 30, 2024
45 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
P. Statement of Cash Flows
A substantial portion of the City’s investments are in short-term, highly liquid instruments, with original maturities of three months or less (excluding fiscal agent investments). The Enterprise and Internal Service Funds participate in the pooling of City-wide cash and investments. Amounts from the pool are available to these funds on demand.
As a result, the cash and investments for the Enterprise and Internal Services Funds are considered to be cash and cash equivalents for the statement of cash flows purposes.
Q. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Specifically, the City has made certain estimates and assumptions relating to the collectability of its accounts and notes receivable, depreciation/amortization of capital assets, amounts due from other funds and amounts advanced to other funds, the valuation of property held for resale, and the ultimate outcome of claims and judgments. Actual results could differ from those estimates and assumptions.
R. Leases
Lessee - The City is a lessee for noncancellable leases of equipment. The City recognizes a lease liability and an intangible rightǦtoǦuse lease asset (lease asset) in the financial statements. The City recognizes lease liabilities with an initial, individual value of $10,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the right-to-use lease asset is amortized on a straightǦline basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
• The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Right-to-use lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.
Lessor - The City is a lessor for a noncancellable lease of a cell tower site. The City recognizes a lease receivable and a deferred inflow of resources in the financial statements.
46 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
R. Leases (Continued)
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.
Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
• The City uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
S. Subscription-Based Information Technology Arrangements
The City is a subscriber for a noncancellable subscription of information technology services. The City recognizes a subscription liability and an intangible rightǦtoǦuse subscription asset (subscription asset) in the governmentǦwide financial statements. The City of Downey recognizes subscription liabilities with an initial, individual value of $5,000 or more.
At the commencement of a subscription, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straightǦline basis over its useful life. Key estimates and judgments related to subscriptions include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments.
• The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscriptions.
• The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position.
47 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
T. New GASB Pronouncements Effective during Fiscal Year The following Government Accounting Standards Board (GASB) pronouncement was effective for and implemented for the fiscal year ended June 30, 2025:
1. GASB Statement No. 101, Compensated Absences
The requirements of this Statement will improve financial reporting by implementing a unified recognition and measurement model that will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. Establishing the unified model will result in consistent application to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave. This Statement will also result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences.
2. GASB Statement No. 102, Certain Risk Disclosures
The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition.
Management has assessed the impact of this Statement on the City's financial statements and determined that it did not have a material impact.
NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
At June 30, 2025, the following funds had a deficit fund balance:
These funds will be replenished with future revenues.
NOTE 3: PROPERTY TAXES
Prior to the beginning of the fiscal year, Los Angeles County, which administers property tax collections for the City of Downey, establishes the assessed valuation roll on January 1 and property taxes attach as an enforceable lien on that date. After the fiscal year has started on July 1, taxes are levied prior to September 1 and are payable in two installments on November 1 (delinquent December 10) and February 1 (delinquent April 10). Assessed valuation is computed at 100% of full cash value; however, due to the 2% annual increase limit per Article XIII-A of the State Constitution, the roll does not fully reflect cash value. Property is reassessed to full cash value when it is sold or otherwise transferred. When property is sold after the normal January 1 lien date, a supplemental property tax is levied representing the difference between the tax levy based on the property value as of January 1 and the tax based on the new value.
Fund Name Fund Type Deficit
Waste Reduction Nonmajor Special Revenue Fund (140,602) Hazardous Material Nonmajor Special Revenue Fund (158,151) 48 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 4: CASH AND INVESTMENTS
As of June 30, 2025, cash and investments were reported in the accompanying financial statements as follows:
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
Government-Wide
Statement of Net
Position
Fiduciary Funds
Statement of Net
Position Total
Cash and investments 149,877,201$ 11,006,010$ 160,883,211$ Cash and investments with fiscal agents 4,368,726 1,516,765 5,885,491 Total Cash and Investments 154,245,927$ 12,522,775$ 166,768,702$ Demand accounts 9,270,722$
Petty cash 7,095
Investments 157,490,885
Total Cash and Investments 166,768,702$
Maximum
Maturity
Maximum
Percentage
Allowed
Maximum
Investment in
One Issuer
United States Treasury Bills, Bonds
and Notes 5 years None None
United States Government Sponsored
Agency Securities 5 years None None
Small Business Administration Loans 5 years None None
California Local Agency Obligations 5 years None None
Certificates of Deposits (or Time Deposits) 5 years None None Negotiable Certificates of Deposits 5 years 30% None
Medium-Term Corporate Notes 5 years 30% None
Bankers' Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 5%
Repurchase Agreements 90 days 50% None
Municipal Bonds 5 years None None
Local Agency Investment Funds (LAIF) N/A None None
Money Market Mutual Funds N/A None None
Authorized Investment Type
49 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 4: CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. Investments authorized for funds held by bond trustee include, United States Treasury Obligations, United States Government Sponsored Agency Securities, Certificates of Deposits, Commercial Paper, Local Agency Bonds, Bankers’ Acceptances, Money Market Mutual Funds, Investment Agreements and any other investments permitted by bond insurer. There were no limitations on the maximum amount that can be invested in one issuer, maximum percentage allowed or the maximum maturity of an investment, except for the maturity of Bankers’ Acceptance and Certificates of Deposits which are limited to one year and 270 days, respectively.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter-term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
12 months
or less
13 - 36
Months
37 - 60
Months Total
Investments:
Local Agency Investment Fund 55,429,968$ -$ -$ 55,429,968$ Federal Farm Credit Bank 1,991,100 5,998,420 - 7,989,520 Freedie Mac - 1,996,780 1,996,780 Federal Home Loan Bank - 4,297,516 11,016,110 15,313,626 Federal National Mortgage Assoc. 2,983,470 - 1,996,760 4,980,230 US Treasury Note - 19,750,850 9,927,550 29,678,400 Negotiable Certificates of Deposit 4,147,464 9,404,078 7,149,700 20,701,242 Corporate Medium-Term Notes - 984,730 14,530,898 15,515,628 Held by Bond Trustee
Money Market Mutual Funds 3,275,191 - - 3,275,191 Cash with LA County 873,196 - - 873,196 Department of HUD 1,737,104 - - 1,737,104 70,437,493$ 40,435,594$ 46,617,798$ 157,490,885$ Investment Maturities (in Months)
50 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 4: CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the minimum rating required, at the time of purchase, by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating, as reported by Standard and Poor’s, as of yearend for each investment type:
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code.
Investments in any one issuer that represent 5% or more of total City’s investments (excluding held by trustees) are as follows:
Total as of
June 30, 2025
Minimum
Legal
Rating AA+ Unrated
Investments:
United States Government
Sponsored Agency Securities
FFCB 7,989,520$ N/A 7,989,520$ -$
FM 1,996,780 N/A 1,996,780
FHLB 15,313,626 N/A 15,313,626 -
FHLMC - N/A - - FNMA 4,980,230 N/A 4,980,230 -
U.S. Treasury Note 29,678,400 A - 29,678,400 Negotiable Certificates of Deposit 20,701,242 N/A - 20,701,242 Corporate Medium-Term Notes 15,515,628 N/A - 15,515,628 Local Agency Investment Fund 55,429,968 N/A - 55,429,968 Held by Bond Trustee
Money Market Mutual Funds 3,275,191 A - 3,275,191 Cash with LA County 873,196 N/A - 873,196 Department of HUD 1,737,104 A - 1,737,104 157,490,885$ 30,280,156$ 127,210,729$
Issuer Investment Type Reported Amount
Percent of
Investment
Federal Farm Credit United States Government
Bank Sponsored Agency Securities
Federal Home Loan Bank United States Government
Sponsored Agency Securities
Medium Term Corporate
Notes Fixed-income investments 15,515,628 9.86%
FDIC-Insured CD's Fixed-income investments 20,701,242 13.15% United States Treasury
Notes
United States Government
fixed-income investments 29,678,400 18.85%
7,989,520$ 5.08%
15,313,626 9.73%
51 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 4: CASH AND INVESTMENTS (CONTINUED)
Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.
Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
The City has the following recurring fair value measurements as of June 30, 2025:
Money market funds are classified in Level 1 of the fair value hierarchy and valued using prices quoted in active markets for those securities. Federal government agency investment, corporate note, and LAIF are classified in Level 2 of the fair value hierarchy and valued using institutional bond quotes or specified fair market value factors.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
At June 30, 2025, the City deposits (bank balances) were all insured by the Federal Deposit Insurance Corporation or collateralized.
Total as of
June 30, 2025 1 2
Investments:
Federal Government Agency 30,280,156$ -$ 30,280,156$ US Treasury Note 29,678,400 - 29,678,400 Negotiable Certificates of Deposit 20,701,242 - 20,701,242 Corporate Medium Term Notes 15,515,628 - 15,515,628 Local Agency Investment Fund 55,429,968 - 55,429,968 Total Cash Investments 151,605,394 - 151,605,394 Investments with Fiscal Agents:
Money Market Funds 3,275,191 3,275,191 - Cash with LA County 873,196 873,196 - Housing and Urban Development 1,737,104 1,737,104 - Total Investments with
Fiscal Agent 5,885,491 5,885,491 -
Total Investments 157,490,885$ 5,885,491$ 151,605,394$ Level
52 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 4: CASH AND INVESTMENTS (CONTINUED)
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
NOTE 5: INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS
As of June 30, 2025, amounts due from/to other funds were as follows:
The amounts loaned by the General Fund to the Other Governmental Funds were to provide short-term loans to fund operations of the various funds.
Interfund transfers at June 30, 2025, consisted of the following:
The General Fund transferred $10,536,451 to Other Governmental Funds for operating transfers and the POB 2021 and 2005 year-end adjustment.
Nonmajor Governmental Funds transferred $5,030,048 to the General Fund, $10,742,762 to Nonmajor Governmental Funds, and $2,545 to the Sewer and Storm Drain Fund to reimburse public safety salaries, adjust unearned revenue, for CDBG costs, and to reimburse the General Fund for Gas Tax eligible costs.
The Water fund transferred $900,000 to the General fund to fund administrative costs or certain program, administrative and overhead expenditures.
Due from Other
Funds
Due to Other Funds General
Governmental Funds:
CIP Grant Fund 395,595$
Other Nonmajor Governmental 2,588,867
Total 2,984,462$
Transfers out General
Nonmajor
Governmental
Sewer and
Storm Drain Total
Governmental Funds:
General $ - 10,285,115$ $ - 10,285,115$ Other Nonmajor Governmental 5,030,048 10,742,762 2,545 15,775,355 Enterprise Fund:
Water 900,000 - - 900,000 Total 5,930,048$ 21,027,877$ 2,545$ 26,960,470$ Transfers In
53 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 6: ADVANCES RECEIVABLE FROM SUCCESSOR AGENCY
The advances from the General Fund and Housing Authority in the amount of $8,608,436 to the Successor Agency are to provide for operations of the Successor Agency. Additional activity includes the collections and payout of loans pass-through the City. The collectability of the balance is subject to the approval of the Department of Finance.
See Note 22 for additional information.
NOTE 7: LOANS RECEIVABLE
The City has provided deferred-payment rehabilitation loans to qualifying low-income households in connection with the CDBG, Home Investment Partnership and Housing Authority housing rehabilitation programs. Loans receivable totaled $12,065,910 as of June 30, 2025.
Additionally, The City’s general fund entered into loan receivable agreements with two local auto dealerships. The City loaned $1,250,000, in April 2017, in order to assist the dealership to relocate to a larger location within the City.
The loan is to be repaid over 12 years at a simple interest rate of 4.25%. In fiscal year 2019, the City entered into another operating covenant and loan receivable in agreement in the amount of $500,000. The outstanding balance on the general fund loans receivable as of June 30, 2025, is $756,982.
NOTE 8: DEFERRED COMPENSATION PLAN
The City has adopted a deferred compensation plan in accordance with Internal Revenue Code 457 for its eligible employees wherein they may execute an individual agreement with the City for amounts earned by them to be paid at a future date when certain circumstances are met. These circumstances are termination by reason of death, disability, resignation or retirement, or unforeseeable emergency.
The plan permits all city employees to defer a portion of their salaries until future years. Amounts accumulated under the plan have been invested by third party operators at the direction of the employee.
Pursuant to changes in August 1996 of IRC Section 457, the City formally established a trust in which it placed the 457 Plan assets and income. The assets, all property and rights purchased with such amounts, and all income attributable to such amounts, property, or rights are held in trust for the exclusive benefit of all participants and their beneficiaries. These assets are not the property of the City, and as such are not subject to the claims of the City’s general creditors. As a result, these 457 plan assets are not reported in the City’s annual comprehensive financial report.
NOTE 9: LEASES
A. Leases Receivable and Deferred Inflows of Resources
Leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, refer to the following below.
The City leases land to various companies for installation of cellular towers. The term is an 8.75-year lease. The City also leases land to Discovery Park, Downey Landing and Industrial Realty Group with term ranging from
3.92 years to 38 years with an option to extend of 5 to 10 years.
As of June 30, 2025, the value of the total combined value of the lease receivable is $19,785,982, the total combined value of the short-term lease receivable is $519,772, and the combined total value of the deferred inflow of resources is $19,094,227.
54 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 9: LEASES (CONTINUED)
The principal and interest payments that are expected to maturity are as follows:
Leases Payable and Lease Assets
The City leases vehicles owned by Enterprise Fleet Management with terms range from 2.92 years to 5 years as of the contract commencement date. As of June 30, 2025, the total combined value of the lease liability is $2,033,653 and the total combined value of the short-term lease liability is $696,149. The combined value of the right to use asset of $2,671,466 with accumulated amortization of $1,905,051 is included within the Lease Class activities table found below.
Right-to-use leased assets include the following at June 30, 2025:
Fiscal Year
Principal
Payments
Interest
Payments Total Payments
2026 376,262$ 321,686$ 697,948$
2027 384,091 315,539 699,630
2028 392,092 309,270 701,362
2029 407,135 302,869 710,004
2030 420,245 296,043 716,288
2031 - 2035 2,004,038 1,380,261 3,384,299 2036 - 2040 2,343,421 1,195,517 3,538,938 2041 - 2045 2,729,103 979,939 3,709,042 2046 - 2050 3,166,810 729,346 3,896,156 2051 - 2055 3,662,942 439,040 4,101,982 2056 - 2060 3,241,497 112,398 3,353,895 19,127,636$ 6,381,908$ 25,509,544$
Governmental Activities
Fiscal Year
Principal
Payments
Interest
Payments Total Payments
2026 143,510$ 6,490$ 150,000$
2027 145,089 4,911 150,000
2028 146,686 3,314 150,000
2029 148,300 1,700 150,000
2030 74,761 239 75,000
658,346$ 16,654$ 675,000$
Business-Type Activities
Lease Type Major Class of Underlying Asset
Amount of
Leased Capital
Assets
Accumulated
Amortization
Vehicle Lease Lease - Vehicles 4,576,517$ 1,905,051$ Total 4,576,517$ 1,905,051$
55 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 9: LEASES (CONTINUED)
Future principal and interest requirements to maturity for each lease liability are as follows:
NOTE 10: SUBSCRIPTION-BASED TECHNOLOGY ARRANGEMENTS
As of June 30, 2025, the City had 6 active subscriptions. The subscriptions have payments that range from $15,558 to $285,000 and interest rates that range from 2.3640% to 3.2170%. As of June 30, 2025, the total combined value of the subscription liability is $1,001,224, and the total combined value of the short-term subscription liability is $518,196. The combined value of the right to use asset, as of June 30, 2025, of $1,857,126 with accumulated amortization of $558,568 is included within the Subscription Class activities table found below. The subscriptions had $0 of Variable Payments and $0 of Other Payments, not included in the Subscription Liability, within the Fiscal Year.
Right-to-use software assets include the following at June 30, 2025:
Future principal and interest requirements to maturity for each software liability are as follows:
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2026 $ 574,477 $ 35,632 $ 610,109 2027 495,563 23,234 518,797 2028 347,886 12,193 360,079 2029 229,734 4,326 234,060 2030 38,574 316 38,890 Total 1,686,234$ 75,701$ 1,761,935$
Governmental Activities
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2026 $ 121,672 $ 12,410 $ 134,082 2027 126,943 7,139 134,082 2028 98,804 1,757 100,561 Total 347,419$ 21,306$ 368,725$
Business-Type Activities
Asset Class Major Class of Underlying Asset
Subscription
Asset Value
Accumulated
Amortization
Software Right-to-Use Subscription Asset 1,857,126$ 558,568$ Total 1,857,126$ 558,568$
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2026 518,196$ 27,877$ 546,073$
2027 465,552 13,356 478,908
2028 17,476 537 18,013
Total 1,001,224$ 41,770$ 1,042,994$
Governmental Activities
56 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CAPITAL ASSETS
A summary of changes in the Governmental Activities capital assets as of June 30, 2025, is as follows:
Governmental Activities depreciation/amortization expense was charged to functions/programs of the primary government as follows:
Balances at
Balances at June 30, 2024 Transfers Balances at
June 30, 2024 Adjustments Restated of CIP Additions Deletions June 30, 2025 Governmental Activities:
Capital assets, not being depreciated/amortized:
Land and improvements 26,360,821$ -$ 26,360,821$ -$ -$ -$ 26,360,821$ Projects-in-progress 27,017,113 - 27,017,113 (16,767,300) 29,254,077 (528,764) 38,975,126 Total Capital Assets,
Not Being Depreciated/amortized 53,377,934 - 53,377,934 (16,767,300) 29,254,077 (528,764) 65,335,947 Capital assets, being depreciated/amortized:
Buildings 85,380,767 - 85,380,767 809,626 - - 86,190,393 Land Improvements 27,436,361 - 27,436,361 - - - 27,436,361 Equipment 23,592,658 - 23,592,658 - 3,564,878 (1,266,792) 25,890,744 Lease assets - vehicles 3,745,043 - 3,745,043 - 823,818 (531,151) 4,037,710 Subscription asset - 552,051 552,051 - 1,305,075 - 1,857,126 Infrastructure 336,597,740 - 336,597,740 15,957,674 - - 352,555,414 Total Capital Assets,
Being Depreciated/amortized 476,752,569 552,051 477,304,620 16,767,300 5,693,771 (1,797,943) 497,967,748 Less accumulated depreciation/amortization:
Buildings 30,589,210 - 30,589,210 - 1,870,563 - 32,459,773 Land Improvements 9,089,118 - 9,089,118 - 1,203,927 - 10,293,045 Equipment 13,751,933 - 13,751,933 - 1,268,806 (1,094,266) 13,926,473 Lease assets - vehicles 1,459,360 - 1,459,360 - 734,380 (531,151) 1,662,589 Subscription asset - 114,082 114,082 - 444,486 - 558,568 Infrastructure 178,367,208 - 178,367,208 - 3,821,304 - 182,188,512 Total Accumulated
Depreciation/amortization 233,256,829 114,082 233,370,911 - 9,343,466 (1,625,417) 241,088,960 Total Capital Assets,
Being Depreciated/amortized, Net 243,495,740 437,969 243,933,709 16,767,300 (3,649,695) (172,526) 256,878,788 Governmental Activities
Capital Assets, Net 296,873,674$ 437,969$ 297,311,643$ -$ 25,604,382$ (701,290)$ 322,214,735$ General Government 294,930$
Public Safety 1,870,702
Community Development 4,585
Community Services 2,529,197
Public Works 4,029,037
Internal Service Funds 615,015
Total depreciation/amortization expense governmental activities 9,343,466$ 57 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CAPITAL ASSETS (CONTINUED)
A summary of changes in the Water Business-type Activities capital assets at June 30, 2025, are as follows:
Balances at Balances at
June 30, 2024 Transfers Additions Deletions June 30, 2025 Business-type Activities:
Capital assets, not being depreciated:
Land 2,459,598$ -$ -$ -$ 2,459,598$ Projects-in-progress 4,214,021 (2,291,586) 3,636,460 - 5,558,895 Water Rights 4,290,880 - - - 4,290,880 Total Capital Assets,
Not Being Depreciated 10,964,499 (2,291,586) 3,636,460 - 12,309,373 Capital assets, being depreciated:
Buildings and improvements 398,073 - - - 398,073 Furniture and Equipment 2,725,062 - 261,876 (223,701) 2,763,237 Infrastructure 61,039,544 2,291,586 - - 63,331,130 Total Capital Assets,
Being Depreciated 64,162,679 2,291,586 261,876 (223,701) 66,492,440 Less accumulated depreciation:
Buildings and improvements 283,852 - 7,270 - 291,122 Furniture and Equipment 1,901,685 - 57,131 (223,701) 1,735,115 Infrastructure 22,895,224 - 1,111,966 - 24,007,190 Total Accumulated
Depreciation 25,080,761 - 1,176,367 (223,701) 26,033,427 Total Capital Assets,
Being Depreciated, Net 39,081,918 2,291,586 (914,491) - 40,459,013 Water Fund
Capital Assets, Net 50,046,417$ -$ 2,721,969$ -$ 52,768,386$
WATER FUND
58 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CAPITAL ASSETS (CONTINUED)
A summary of changes in the Golf Business-type Activities capital assets at June 30, 2025, are as follows:
Balances at Balances at
June 30, 2024 Additions Deletions June 30, 2025
Capital assets, not being depreciated:
Land 8,294,387$ -$ -$ 8,294,387$ Total Capital Assets,
Not Being Depreciated 8,294,387 - - 8,294,387 Capital assets, being depreciated:
Land improvements 4,710,076 - - 4,710,076 Buildings and improvements 8,217,041 - - 8,217,041 Machinery and equipment 106,330 - (13,758) 92,572 Lease assets - vehicles 538,807 - - 538,807 Total Capital Assets,
Being Depreciated 13,572,254 - (13,758) 13,558,496 Less accumulated depreciation:
Land improvements 4,563,296 25,085 - 4,588,381 Buildings and improvements 3,256,200 164,710 - 3,420,910 Machinery and equipment 88,100 4,909 (13,758) 79,251 Lease assets - vehicles 134,701 107,761 - 242,462 Total Accumulated
Depreciation 8,042,297 302,465 (13,758) 8,331,004 Total Capital Assets,
Being Depreciated, Net 5,529,957 (302,465) - 5,227,492 Golf Fund
Capital Assets, Net 13,824,344$ (302,465)$ -$ 13,521,879$
GOLF FUND
59 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CAPITAL ASSETS (CONTINUED)
A summary of changes in the Sewer and Storm Drain Business-type Activities capital assets at June 30, 2025, are as follows:
Capital Project Commitments
The City has active construction projects as of June 30, 2025. At year end, the City’s projects-in-progress totaled $47,553,164. The following material construction commitments existed at June 30, 2025.
Balances at Balances at
June 30, 2024 Additions Deletions June 30, 2025
Capital assets, not being depreciated:
Projects-in-progress 2,334,410$ 684,733$ -$ 3,019,143 Total Capital Assets,
Not Being Depreciated 2,334,410 684,733 - 3,019,143 Capital assets, being depreciated:
Machinery and equipment 1,087,966 1,180 (47,157) 1,041,989 Infrastructure 77,062,223 - - 77,062,223 Total Capital Assets,
Being Depreciated 78,150,189 1,180 (47,157) 78,104,212 Less accumulated depreciation:
Machinery and equipment 425,096 37,658 (47,157) 415,597 Infrastructure 55,305,344 1,547,476 - 56,852,820 Total Accumulated
Depreciation 55,730,440 1,585,134 (47,157) 57,268,417 Total Capital Assets,
Being Depreciated, Net 22,419,749 (1,583,954) - 20,835,795 Sewer and Storm Drain Fund
Capital Assets, Net 24,754,159$ (899,221)$ -$ 23,854,938$
SEWER AND STORM DRAIN FUND
Project Name Contract Amount
Expenditures to
date as of
June 30, 2025
Remaining
Commitments
Woodruff Avenue 7,282,587$ 5,014,064$ 2,268,523$ HVAC Improvements at Barbara J. Riley Community/Senior Center 1,900,000 1,173,286 726,714 Space Shuttle Exhibit and Education Building 1,223,091 183,210 1,039,881 Furman Park 1,025,740 811,972 213,768
Residential Street Pavement Rehab 366,353 120,550 245,803 Citywide Bus Signal Priority Project 427,500 219,032 208,468 Total Construction Commitments 12,225,271$ 7,522,114$ 4,703,157$ 60 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 12: LONG-TERM DEBT
Noted below is a summary of changes in long-term debt for the year ended June 30, 2025:
Governmental Activities
Bonds Payable
2005 Pension Obligation Bonds
In June 2005, the City issued $20,635,000 taxable pension obligation bonds. Bond proceeds were used to satisfy a portion of the City’s requirement to amortize the unfunded actuarial accrued liability with respect to retirement benefits accruing to members of the City. The par amount of the bonds comprised of $1,955,000 serial bonds and $18,680,000 term bonds. Principal on serial bonds mature in amounts from $90,000 to $395,000, the interest at
4.030% to 4.775% through June 1, 2015. Principal on the term bonds mature on June 1, 2021, 2025 and 2034, the interest rate at 4.885% to 5.083%. The term bonds are subject to optional redemption prior to their maturity at the option of the City, in whole or in part on any date, at the redemption price equal to the lesser of (a) 100% of the principal amount on the term bonds to be redeemed; or (b) the sum of the present value of the remaining scheduled payments of the principal and interest to be redeemed.
Balance Adjusted Balance Due Within
June 30, 2024 Adjustments Beginning Bal Additions Reductions June 30, 2025 One Year Governmental Activities:
Bond payable
2005 Pension Obligation Bonds 11,635,000$ -$ 11,635,000$ -$ 730,000$ 10,905,000$ 810,000$ 2017 Lease Revenue Bonds 35,040,000 - 35,040,000 - 2,000,000 33,040,000 2,100,000 2021 Pension Obligation Bonds 102,214,882 - 102,214,882 - 3,898,839 98,316,043 3,879,633 Sales Tax Revenue Bonds -
2021A Measure M Bond 13,655,000 - 13,655,000 - 505,000 13,150,000 530,000 2021B Measure M Bond 9,855,000 - 9,855,000 - 500,000 9,355,000 515,000 - -
Bond premiums 7,001,532 - 7,001,532 - 403,425 6,598,107 - Bond discount (71,093) - (71,093) - (7,108) (63,985) - Total Bonds 179,330,321 - 179,330,321 - 8,030,156 171,300,165 7,834,633 Direct borrowings
Financed purchases 3,186,964 - 3,186,964 - 834,432 2,352,532 853,037 Lease payable (Note 9) 1,591,577 - 1,591,577 818,556 723,899 1,686,234 574,477 Subscription payable (Note 10) - 323,998 323,998 1,305,075 627,849 1,001,224 518,196 HUD Section 108 Loans
2011 - Section 108 662,000 -662,000 - 81,000 581,000 81,000 2018 - Section 108 2,368,000 - 2,368,000 - 158,000 2,210,000 158,000 2019 - Section 108 342,000 - 342,000 - 114,000 228,000 114,000 Total governmental
activities long-term
liabilities 187,480,862$ 323,998$ 8,474,539$ 2,123,631$ 10,569,336$ 179,359,155$ 10,133,343$ Business-type Activities:
Bond payable
2021 Pension Obligation Bonds 4,225,118$ -$ 4,225,118$ -$ 161,161$ 4,063,957 160,368$ Loans payable
Golf Course 2014 1,720,000 - 1,720,000 - 550,000 1,170,000 575,000 Direct borrowings
Lease payable (Note 9) 464,038 - 464,038 - 116,619 347,419 121,672 Total business-type
activities long-term
liabilities 6,409,156$ -$ 6,409,156$ -$ 827,780$ 5,581,376$ 857,040$ 61 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 12: LONG-TERM DEBT (CONTINUED)
The future debt service requirements on these bonds are as follows:
The outstanding bonds contain a provision that if any event of default should occur, the sole legal remedy of any Holder or Beneficial Owner of the Bonds or the Participating Underwriter shall be an action to compel performance.
No Bondholder or Beneficial Owner may institute such action, suit or proceeding to compel performance unless they shall have first delivered to the Local Agency satisfactory written evidence of their status as such, and a written notice of and request to cure such failure, and the Local Agency shall have refused to comply therewith within a reasonable time.
2017 Lease Revenue Bonds
In December 2017, the City issued $45,415,000 lease revenue bonds. Bond proceeds will be used to finance the acquisition and construction of certain public capital improvements of benefit to the City and pay the cost of issuing the bonds. Principal on the bonds mature in amounts from $1,600,000 to $3,390,000, beginning December 1, 2018 through December 1, 2036, and the interest at 2.000% to 5.000% is due semiannually on June 1 and December 1, commencing on June 1, 2018.
The future debt service requirements on these bonds are as follows:
The outstanding bonds contain a provision that if any event of default should occur and continues to occur, the Authority is authorized under the terms of the Property Lease to exercise any and all remedies available under law or generated under the Property Lease. There is no remedy of acceleration of the total Base Rental payments due over the term of the Property Lease. The Trustee is not empowered to sell the Site and Facilities and use the proceeds of such sale to prepay the 2017 Bonds or pay debt service on the 2017 Bonds.
Year Ending June 30, Principal Interest Total
2026 810,000$ 554,301$ 1,364,301$
2027 895,000 513,129 1,408,129
2028 985,000 467,636 1,452,636
2029 1,085,000 417,568 1,502,568
2030 1,190,000 362,418 1,552,418
2031-2035 5,940,000 787,102 6,727,102
Total 10,905,000$ 3,102,154$ 14,007,154$
Year Ending June 30, Principal Interest Total
2026 2,100,000$ 1,344,038$ 3,444,038$
2027 2,205,000 1,236,413 3,441,413
2028 2,315,000 1,123,413 3,438,413
2029 2,430,000 1,004,788 3,434,788
2030 2,555,000 880,163 3,435,163
2031-2035 14,750,000 2,428,788 17,178,788
2036-2037 6,685,000 208,331 6,893,331
Total 33,040,000$ 8,225,934$ 41,265,934$
62 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 12: LONG-TERM DEBT (CONTINUED)
2021 Pension Obligation Bonds
In February 2021, the City issued $113,585,000 pension obligation bonds. Bond proceeds will be used to refinance the City’s statutory obligation to appropriate and make payments to CalPERS for certain amounts arising as a result of retirement benefits accruing to members of the System. Principal on the bonds mature in amounts from $3,595,000 to $7,325,000, beginning June 30, 2023 through June 30, 2044, and the interest at .317% to 2.995% is due semiannually on June 1 and December 1, ending 2045.
The future debt service requirements on these bonds are as follows:
Governmental Activity
Business Type Activity
Year Ending June 30, Principal Interest Total
2026 3,879,633$ 2,427,909$ 6,307,542$
2027 3,874,831 2,390,199 6,265,030
2028 3,884,434 2,337,229 6,221,664
2029 3,898,839 2,276,360 6,175,199
2030 3,918,045 2,208,131 6,126,176
2031-2035 21,774,920 9,863,142 31,638,061
2036-2040 30,681,750 6,633,550 37,315,300
2041-2044 26,403,591 1,931,311 28,334,902
Total 98,316,043$ 30,067,830$ 128,383,873$
Year Ending June 30, Principal Interest Total
2026 160,368$ 100,359$ 260,727$
2027 160,169 98,800 258,969
2028 160,566 96,611 257,176
2029 161,161 94,095 255,256
2030 161,955 91,274 253,229
2031-2035 900,080 407,699 1,307,780
2036-2040 1,268,250 274,202 1,542,452
2041-2044 1,091,408 79,832 1,171,240
Total 4,063,957$ 1,242,873$ 5,306,830$
Year Ending June 30, Principal Interest Total
Governmental 98,316,043$ 30,067,830$ 128,383,873$ Business 4,063,957 1,242,873 5,306,830
Total 102,380,000$ 31,310,703$ 133,690,703$
63 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 12: LONG-TERM DEBT (CONTINUED)
The outstanding bonds contain a provision that if any event of default should occur and continues to occur, the City and Trustee have no liability to the Holders of Series 2021 bonds or any other party related to or arising from such rescission of redemption.
Sales Tax Revenue Bonds Measure M Series 2021A and Measure R Series 2021B
In October 2021, the City issued $15,275,000 Measure M Series 2021A bonds and $11,385,000 Measure R Series 2021 bonds. The bonds are being issued to finance the design, acquisition, and construction of certain local roadway and street improvement projects in the City, purchase a debt service reserve fund insurance policy to satisfy the reserve requirement for the 2021B Bonds and pay the costs incurred in connection with the issuance of the 2021B Bonds.
Principal on the Measure M Series A bonds mature in amounts from $470,000 to $1,790,000, beginning June 1, 2022 through June 1, 2041, and the interest at 2.25% to 4.0% is due semiannually on June 1 and December 1. Principal on the Measure R Series 2021B bonds mature in amounts from $460,000 to $815,000 beginning June 1, 2022 through June 1, 2039, and the interest at 2.125% to 4.0% is due semiannually on June 1 and December 1.
The future debt service requirements on these bonds are as follows:
2021A Measure M Bond – Governmental Activity
2021B Measure R Bond – Governmental Activity
Year Ending June 30, Principal Interest Total
2026 530,000$ 497,156$ 1,027,156$
2027 545,000 475,956 1,020,956
2028 570,000 454,156 1,024,156
2029 595,000 431,356 1,026,356
2030 620,000 407,556 1,027,556
2031-2035 3,475,000 1,647,181 5,122,181
2036-2040 5,025,000 937,613 5,962,613
2041 1,790,000 71,600 1,861,600
Total 13,150,000$ 4,922,574$ 18,072,574$
Year Ending June 30, Principal Interest Total
2026 515,000$ 317,631$ 832,631$
2027 540,000 297,031 837,031
2028 560,000 275,431 835,431
2029 580,000 253,031 833,031
2030 605,000 229,832 834,832
2031-2035 3,410,000 765,956 4,175,956
2036-2040 3,145,000 194,574 3,339,574
Total 9,355,000$ 2,333,486$ 11,688,486$
64 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 12: LONG-TERM DEBT (CONTINUED)
Finance Purchases
The future minimum lease obligations and the net present value of these minimum lease payments are as follows:
Loans from Federal Government
HUD Section 108 Loans
In 2011, the City received a Section 108 Loan from the United States Department of Housing and Urban Development. The payment schedule as of June 30, 2025, is as follows:
In 2018, the City requested an advance in the amount of $1,000,130 pursuant to Section 108 of the Housing and Community Development Act of 1974. The City of Downey elected to deduct HUD’s $25,800 loan and $70 advance fees from the original $1,026,000 Section 108 Loan amount. The payment schedule as of June 30, 2025, is as follows:
Year Ending June 30, Principal Interest Total
2026 853,037$ 88,290$ 941,327$
2027 735,124 55,981 791,105
2028 764,371 26,733 791,104
Total 2,352,532$ 171,004$ 2,523,536$
Year Ending June 30, Principal Interest Total
2026 81,000$ 1,219$ 82,219$
2027 - - -
2028 - - -
2029 - - -
2030 81,000 1,219 82,219
2031-2035 170,000 2,275 172,275
2036-2040 170,000 2,275 172,275
2041-2045 79,000 734 79,734
Total 581,000$ 7,722$ 588,722$
Year Ending June 30, Principal Interest Total
2026 114,000$ 4,821$ 118,821$
2027 114,000 1,630 115,630
Total 228,000$ 6,451$ 234,451$
65 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 12: LONG-TERM DEBT (CONTINUED)
In 2019, the City received a Section 108 Loan from the United States Department of Housing and Urban Development. The payment schedule as of June 30, 2025, is as follows:
Business-type Activities
2014 Golf Course Loan Agreement
The 2014 Loan Agreement, consisting of $6,350,000, were issued by the City of Downey to prepay the 2002 Lease Agreement and Certificates of Participation (Golf Course Financing). Principal payments are due August, the interest is due February and August of every year at a rate of 3.70% maturing in August 2026.
Future debt service requirements on these certificates are as follows:
NOTE 13: COMPENSATED ABSENCES
Compensated Absences
For the fiscal year ended June 30, 2025, compensated absences are as follows:
Year Ending June 30, Principal Interest Total
2026 158,000$ 69,738$ 227,738$
2027 158,000 65,316 223,316
2028 158,000 60,789 218,789
2029 158,000 56,163 214,163
2030 158,000 51,290 209,290
2031-2035 790,000 167,576 957,576
2036-2040 630,000 56,351 686,351
Total 2,210,000$ 527,223$ 2,737,223$
Year Ending June 30, Principal Interest Total
2026 575,000$ 32,653$ 607,653$
2027 595,000 11,008 606,008
Total 1,170,000$ 43,661$ 1,213,661$
Balance Adj Balance Balance Due Within
June 30, 2024 Adjustments* June 30, 2024 Net Change June 30, 2025 One Year Compensated absences:
Governmental activities 16,991,605$ (6,031,400)$ 10,960,205$ 771,050$ 11,731,255$ 4,576,914$ Business-type activities 652,789 (109,650) 543,139 36,518 579,657 159,715 Total compensated absences 17,644,394$ (6,141,050)$ 11,503,344$ 807,568$ 12,310,912$ 4,736,629$ * - Adjustments related to implementation of GASB 101
66 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 14: CLAIMS AND JUDGEMENTS
Claims Payable (Self-Insurance)
The City has two types of claims it has to manage and account for. The City is a member of Independent Cities Risk Management Authority (ICRMA), an Authority that provides liability insurance for several California Cities, and employs independent claims administrators to accomplish this task. The two types of claims are workers’ compensation and general liability. The self-insured retention and limits of insurance coverage (each occurrence or per employee, per year) for the respective claims are as follows:
Changes in the workers’ compensation, employee health benefits, and general liability outstanding claims liability for the fiscal year ended June 30, 2025, were as follows:
The amounts payable include Incurred but Not Reported (IBNR) claims. Payments are typically paid from the General Fund and Employee Benefits Internal Service Fund. The various amounts are based on information provided by the City’s claims administrators.
NOTE 15: CITY EMPLOYEE RETIREMENT PLAN
A. General Information about the Pension Plans
The City of Downey contributes to the State of California Public Employees Retirement System (CalPERS), which is an agent multiple-employer public employee defined benefit pension plan. All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans administered by CalPERS, which acts as a common investment and administrative agent for its participating member employers. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of PERS’ annual financial report may be obtained from their Executive Office - 400 P Street Sacramento, California 95814, or downloaded from the website at www.calpers.ca.gov .
Self-Insured
Retention
Limit of
Insurance
Coverage
Workers' Compensation 750,000$ 5,000,000$
General Liability 2,000,000 20,000,000
General Liability
Workers'
Compensation
Employee
Health Benefit Total
Claims Payable, June 30, 2023 5,258,000$ 18,305,000$ 85,000$ 23,648,000$ Adjustments due to actuarial valuation - - - - Claims and Changes in Estimates 2,532,339 4,417,155 - 6,949,494 Claims Payments (883,339) (3,326,155) - (4,209,494) Claims Payable, June 30, 2024 6,907,000$ 19,396,000$ 85,000$ 26,388,000$ Claims payable, due within one year 1,832,000$ 3,735,000$ -$ 5,567,000$ Claims Payable, June 30, 2024 6,907,000$ 19,396,000$ 85,000$ 26,388,000$ Adjustments due to actuarial valuation - - - - Claims and Changes in Estimates 2,105,244 3,543,418 - 5,648,662 Claims Payments (514,244) (3,635,418) - (4,149,662) Claims Payable, June 30, 2025 8,498,000$ 19,304,000$ 85,000$ 27,887,000$ Claims payable, due within one year 1,966,000$ 3,658,000$ -$ 5,624,000$ 67 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 15: CITY EMPLOYEE RETIREMENT PLAN (CONTINUED)
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible for non-duty disability benefits after 10 statutorily reduced benefits.
Pension related balances presented on the Statement of Net Position as of June 30, 2025 by individual plan are described in the following table:
The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows:
The Miscellaneous and Safety Classic Plans are closed to new entrants.
Employees Covered
At the June 30, 2024 measurement date, the following employees were covered by the benefit terms for each Plan:
Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ Deferred Deferred
Outflows Net Pension Inflows Pension
Pension Liability Pension Expense
CalPERS Miscellaneous Plan 7,939,764$ (40,698,023)$ -$ 7,494,028$ CalPERS Safety Plan 25,015,856 (89,402,499) (244,587) 20,440,058 Total pension plans 32,955,620$ (130,100,522)$ (244,587)$ 27,934,086$ Miscellaneous
Classic
Miscellaneous
Classic - 2nd
Tier
PEPRA
Miscellaneous Safety Classic
Safety Classic -
2nd Tier
PEPRA Safety
Police
PEPRA Safety
Fire
Hire date
Prior to
January 1, 2013
January 11,2012 -
January 1, 2013
January 1, 2013
and after
Prior to
January 1, 2013
October 10,2012 -
January 1, 2013
January 1, 2013
and after
January 1, 2013
and after
Benefit formula 2.7% @ 55 2.0% @ 60 2% @ 62 3% @ 50 3% @ 55 2.7% @ 57 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service 5 years service 5 years service 5 years servi ce Benefit payments monthly for life monthly for life monthly for life monthly for life monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs minimum 52 yrs minimum 50 yrs minimum 50 yrs minimum 52 yrs minimum 52 yrs Monthly benefits, as a % of
eligible compensation
2.0% - 2.7%, 50
yrs - 55+ yrs,
respectively
2.0% - 2.7%, 50
yrs - 55+ yrs,
respectively
1.0% - 2.5%, 52
yrs - 67+ yrs,
respectively
3.0%, 50 yrs -
55+ yrs
3.0%, 50 yrs -
55+ yrs
2.0% - 2.7%, 50
yrs - 57+ yrs,
respectively
2.0% - 2.7%, 50
yrs - 57+ yrs,
respectively
Required employee
contribution rates 8.000% 7.000% 6.250% 9.000% 9.000% 10.310% 10.310% Required employer
contribution rates 11.180% 11.180% 11.180% 21.240% 21.240% 21.240% 21.240% Required unfunded liability
payment $ 2,795,415 $ - $ - $ 6,280,280 $ - $ - $ - Miscellaneous agent plans Safety agent plans
Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 493 346 Inactive employees entitled to but not yet receiving benefits 606 91 Active employees 224 178
1,323 615
68 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 15: CITY EMPLOYEE RETIREMENT PLAN (CONTINUED)
annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
B. Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2024, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions
The total pension liabilities in the June 30, 2024, actuarial report were determined using the following actuarial assumptions:
Discount Rate - The discount rate used to measure the total pension liability was 6.80%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Long-term Expected Rate of Return - The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:
Actuarial Cost Method Entry Age Actuarial Cost Method
Discount Rate 6.80%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CalPERS’ Membership Data for all Funds
Post Retirement Benefit
Increase
Contract COLA up to 2.80% until
Purchasing Power Protection Allowance
Floor on Purchasing Power applies, 3.00%
thereafter
Actuarial Assumptions
(1) The mortality table used was developed based on CalPERS’ specific data. For more details on this table, please refer to the 2017 experience study report. 69 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 15: CITY EMPLOYEE RETIREMENT PLAN (CONTINUED)
C. Changes in Net Pension Liability
The changes in the Net Pension Liability recognized over the measurement date for each Plan follows:
New Strategic
Allocation Real Return
1, 2
Global Equity - Cap-weighted 30.00% 4.54%
12.00% 3.84%
13.00% 7.28%
5.00% 0.27%
5.00% 0.50%
10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
1 An expected price inflation of 2.30% used for this period. 2 Figures are based on the 2022 Asset Liability Management study.
Asset Class 1
Global Equity Non-Cap-weighted
Private Equity
Treasury
Mortgage-Backed Securities
Investment Grade Corporates
Miscellaneous Plan
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/(Assets)
(c)=(a)-(b)
Balance at: 6/30/2023 (Measurement date) 235,172,125$ 190,893,826$ 44,278,299$ Changes Recognized for the Measurement Period:
Service Cost 2,849,716 - 2,849,716 Interest on the Total Pension Liability 15,902,475 - 15,902,475 Difference between Expected and Actual
Experience 560,251 - 560,251 Contribution from the Employer - 3,892,560 (3,892,560) Contributions from Employees - 1,280,700 (1,280,700) Net Investment Income - 17,874,789 (17,874,789) Benefit Payments including Refunds of Employee
Contributions (13,373,152) (13,373,152) -
Administration Expenses - (155,331) 155,331 Net Changes During 2023-24 5,939,290 9,519,566 (3,580,276) Balance at: 6/30/2024 (Measurement Date) 241,111,415$ 200,413,392$ 40,698,023$ Increase (Decrease)
70 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 15: CITY EMPLOYEE RETIREMENT PLAN (CONTINUED)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
Recognition of Gains and Losses
Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
Safety Plan
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/(Assets)
(c)=(a)-(b)
Balance at: 6/30/2023 (Measurement date) 502,984,755$ 409,026,492$ 93,958,263$ Changes Recognized for the Measurement Period:
Service Cost 8,121,275 - 8,121,275 Interest on the Total Pension Liability 34,326,134 - 34,326,134 Changes of Benefit Terms - - - Difference between Expected and Actual
Experience 4,140,257 - 4,140,257 Contribution from the Employer - 10,173,425 (10,173,425) Contributions from Employees - 2,828,996 (2,828,996) Net Investment Income - 38,473,835 (38,473,835) Benefit Payments including Refunds of Employee
Contributions (27,410,902) (27,410,902) -
Administration Expenses - (332,826) 332,826 Net Changes During 2023-24 19,176,764 23,732,528 (4,555,764) Balance at: 6/30/2024 (Measurement Date) 522,161,519$ 432,759,020$ 89,402,499$ Increase (Decrease)
Plans
Discount Rate - 1%
(5.90%)
Discount Rate
(6.90%)
Discount Rate + 1%
(7.90%)
Miscellaneous 71,605,567$ 40,698,023$ 15,209,808$ Safety 159,086,171 89,402,499 32,279,567 230,691,738$ 130,100,522$ 47,489,375$
Plan's Net Pension Liability
71 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 15: CITY EMPLOYEE RETIREMENT PLAN (CONTINUED)
The amortization period differs depending on the source of the gain or loss:
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired).
The EARSL for the Plan for the measurement period ending June 30, 2024 is 3.6 years for safety and 1.8 years for Miscellaneous, which was obtained by dividing the total service years of 2,185 safety and 2,478 miscellaneous (the sum of remaining service lifetimes of the active employees) by 615 safety and 1,344 miscellaneous (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
D. Changes in Net Pension Liability
For the measurement period ending June 30, 2024, the City incurred pension expense in the amount of $7,494,028 and $20,440,058 for the Miscellaneous and Safety Plans, respectively, totaling $27,934,086 for all plans. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Difference between projected and
actual earnings
5 year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lifetime (EARSL) of all members that
are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
Miscellaneous Plan
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date 3,811,227$ -$ Differences between Expected and Actual Experiences 249,000 - Net difference between projected and actual earnings on pension plan investments 3,879,537 -
7,939,764$ -$
Safety Plan
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date 9,014,264$ -$ Changes of Assumptions 2,453,246 -
Differences between Expected and Actual Experiences 5,083,926 (244,587) Net difference between projected and actual earnings on pension plan investments 8,464,420 -
25,015,856$ (244,587)$
Total Deferred Outflows and Inflows of resources 32,955,620$ (244,587)$ 72 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 15: CITY EMPLOYEE RETIREMENT PLAN (CONTINUED)
The $3,811,227 and $10,170,296 reported as deferred outflows of resources related to miscellaneous and safety plan contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
NOTE 16: POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS
Plan Description
In connection with the retirement benefits for employees described in Note 13, the City provides post-retirement medical benefits to retirees. The Plan is an agent-multiple employer plan. These benefits are available to employees who retire with the City with at least 10 years of service or those who satisfy certain disability requirements. The Plan does not issue a publicly available financial report.
Funding Policy
The City’s funding policy affects the calculation of liabilities by impacting the discount rate that is used to develop the plan liability and expense. “Prefunding” is the term used when an agency consistently contributes an amount based on an actuarially determined contribution (ADC) each year. GASB 75 allows prefunded plans to use a discount rate that reflects the expected earnings on trust assets. Pay-asǦ youǦgo, or “PAYGO”, is the term used when an agency only contributes the required retiree benefits when due. When an agency finances retiree benefits on a payǦasǦyouǦgo basis, GASB 75 requires the use of a discount rate equal to a 20Ǧyear high grade municipal bond rate.
The City has been and continues to prefund its OPEB liability, contributing 100% or more of the Actuarially Determined Contributions each year. Therefore, with the City’s approval, the discount rate used in this valuation is 6.05%, the City’s expectation of the long-term return on trust assets.
Employees Covered
As of the June 30, 2024 actuarial valuation, the following current and former employees were covered by the benefit terms under the OPEB Plan:
Contributions
The OPEB Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. For the measurement date ended June 30, 2024, the City’s cash contributions were $1,003,700 in total payments, which were recognized as a reduction to the OPEB liability.
Measurement Period
Ended June Miscellaneous Safety Total Plans
2025 675,196$ 5,803,836$ 6,479,032$
2026 5,212,234 13,013,888 18,226,122
2027 (757,221) (907,827) (1,665,048) 2028 (1,001,672) (2,152,892) (3,154,564) 4,128,537$ 15,757,005$ 19,885,542$
Deferred Outflows/(Inflows) of Resources
Inactive members currently receiving benefits 260
Inactive members entitled to but not yet receiving benefits 260 Active members 398
Total 918
73 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 16: POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2024. The Liability was determined based on the following actuarial methods and assumptions:
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Discount Rate
The discount rate used to measure the total OPEB liability was 6.45 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries.
Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
Actuarial Cost Method Entry Age Normal
Actuarial Assumptions
Discount Rate 6.45%
Inflation 2.50%
Salary Increases 2.50% per year
Investment Rate of Return 6.55%
Mortality Rate (1)MacLeod Watts Scale 2022 applied generationally from 2021 Healthcare Trend Rate 9% on Jan 2025, decreasing to 3.9% by 2075 (1) Mortality rates developed from a blending of data and methodologies found in the Society of Actuaries Mortality Improvmeent Scale MP-2021 Report and demographic assumptions used in the 2021 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds.
Asset Class
Target
Allocation
Long-term
expected real
rate of return
Global Equity 49.00% 7.10%
Global Debt Securities 23.00% 5.00%
Inflation Assets 5.00% 3.80%
REITs 20.00% 6.40%
Commodities 3.00% 4.40%
Total 100.00%
74 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 16: POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)
Changes in the OPEB Liability
The changes in the net OPEB liability are as follows:
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2024:
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2024:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 (Measurement date) 20,387,541$ 10,057,876$ 10,329,665$ Changes recognized for the
measurement period:
Service cost 508,056 - 508,056 Interest on total OPEB liability 1,233,822 - 1,233,822 Plan experience - - - Changes of assumptions (858,286) - (858,286) Differences between expected and - - - actual experience
Change due to investment experience - 488,928 (488,928) Contributions-employer - 1,003,700 (1,003,700) Contributions-employee - - - Net investment income - 613,430 (613,430) Benefit payments, including refunds of (1,003,700) (1,003,700) - employee contributions
Administrative expense - (3,278) 3,278 Other miscellaneous (income)/expense - - - Net changes during 2024-25 (120,108) 1,099,080 (1,219,188) Balance at June 30, 2024 (Measurement date) 20,267,433$ 11,156,956$ 9,110,477$ Discount Rate Current Discount Rate
-1% Discount Rate +1%
(5.45%) (6.45%) (7.45%)
Plan's net OPEB liability/(asset) 11,374,343$ 9,110,477$ 7,207,586$ Current
1% Heathcare 1%
Decrease Trend Rate Increase
Plan's net OPEB liability/(asset) 7,305,537$ 9,110,477$ 11,403,727$ 75 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 16: POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)
OPEB Plan Fiduciary Net Position
CalPERS issues a separate Annual Comprehensive Financial Report. Copies of the annual financial report may be obtained from the CalPERS Executive Office at 400 P Street, Sacramento, California, 95814.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $1,359,101. As of fiscal year ended June 30, 2025, the City reported deferred outflows of resources related to OPEB from the following sources:
* Includes implied subsidy of $733,435
The $1,238,704 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2026. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:
NOTE 17: JOINT VENTURES
The City is a participant in four joint ventures. The joint ventures are not considered part of the reporting entity, as the City does not exercise primary oversight responsibilities for their operations and does not have financial responsibility. These agencies do not depend on revenue from the City to continue in existence. Each participating agency in these joint ventures has proportionate control over management, budgets, and financial decisions.
Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to the
measurement date * 1,238,704$ -$
Changes of assumptions 654,987 930,775
Differences between expected and
actual experience 2,543,902 366,988
Net difference between projected
and actual earnings on OPEB
plan investments 88,476 -
Total 4,526,069$ 1,297,763$
Deferred
Outflows/(Inflows)
Fiscal year ended June 30, of Resources
2026 171,966$
2027 635,908
2028 362,242
2029 330,004
2030 344,509
Thereafter 144,973
Total 1,989,602$
76 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 17: JOINT VENTURES (CONTINUED)
Southeast Area Animal Control Authority.
This joint venture provides animal control services to nine cities in the Southeast Los Angeles County area. The Authority is governed by a nine-member board with one representative from each member city. Each member is obligated to contribute annually.
The Authority is not currently experiencing financial stress on accumulating significant resources. The City has no equity interest in the Authority and does not receive a share of operating results. Separate audited financial statements for the Authority may be obtained at 9777 Seaaca Street, Downey, California 90241.
Joint Fire Dispatching Center.
In this joint venture, the City operates as a cooperative program with the cities of Santa Fe Springs and Compton.
The City receives all calls for fire emergency services and dispatches fire units for the four-city area. The program is financed with contributions from each city per a Joint Powers Agreement. Pro-rata expenditures and revenues are reported as part of the Fire Department. Separate audited financial statements are not prepared for the joint venture.
Gateway Authority (Gateway Region IRWM Joint Powers Authority).
This joint venture was formed through a directive of COG (Gateway Cities Council of Governments) in 2007 and was designated by the State of California as an Integrated Regional Water Management Group. This coalition is currently comprised of 19 cities and government entities and is responsible for the regional water planning needs in the Gateway Cities Region. The Gateway Authority is governed by the member cities and agencies and financed with contributions from each city per a Joint Powers Agreement. Separate audited financial statements for the Authority may be obtained at City of Signal Hill, City Hall. The City of Signal Hill acts as lead agency.
Southeast Water Coalition.
This joint venture was formed in 1991 to protect the quantity and quality of the regional water supply. This coalition is currently comprised of 11 cities. The Southeast Water Coalition is governed by the member cities and three advisory agencies. The City of Whittier acts as lead agency.
NOTE 18: MORTGAGE REVENUE BONDS
On March 13, 1985, the City of Downey issued, in conjunction with the cities of Covina, Rancho Cucamonga, and Calexico, Residential Mortgage Revenue Bonds, 1985 Series A, to provide funds in the amount of $1,937,040 to purchase loans to be secured by single-family condominium units in the City. The bonds are special obligations of the Covina, Rancho Cucamonga, Calexico, Downey Housing Finance Agency. Seattle First National Bank serves as trustee.
On May 15, 1985, the City of Downey issued, in conjunction with the cities of El Monte and San Jacinto, Single-Family Residential Mortgage Revenue Bonds, Issue of 1985, to provide funds in the amount of $1,950,000 to purchase loans to be secured by single-family condominium units in the City. The bonds are special obligations of the El Monte-Downey-San Jacinto Housing Finance Agency. Seattle First National Bank serves as trustee.
On August 8, 2001, the City of Downey issued, in conjunction with the California Statewide Communities Development Authority, Multi-Family Housing Revenue Bonds, Series S and S-T, to provide funds in the amount of $3,300,000 to purchase loans to be secured by multifamily apartment complex in the City. The bonds are limited obligations of the California Statewide Communities Development Authority payable solely from the revenues from the multifamily apartment complex. U.S. Bank Trust National serves as trustee.
The above debt issues are special obligations of the respective Housing Finance Agencies and are payable solely from payments made on mortgage loans and are secured by a pledge of such mortgage loans. Neither the faith and credit nor the taxing power of the City of Downey have been pledged to the payment of the bonds. Accordingly, these debts are not reported as liabilities in the accompanying financial statements. 77 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 19: SALES TAX ABATEMENT
The City has entered into a tax abatement agreement with local businesses. The abatement may be granted to any business located within or promising to relocate to the City. For the Fiscal Year ended June 30, 2025, the City abated taxes totaling $189,956. Under this program, the City has the following Tax abatement agreements:
•A sales tax abatement to assist a local auto dealership in relocating to a larger facility within the City in order to retain jobs within the City and generate increased sales taxes. Per the Agreement, the dealership is required to maintain no less than thirty- five full time equivalent positions. The City authorized a loan in the amount of $1,250,000, repayable over 12 years at an interest rate of 4.25 percent per year. Additionally, of any sales tax revenues exceeding $400,000 and up to $670,000, 50% of sales tax revenues shall be credited to the loan. For any sales tax revenue over $670,000, an additional 30% of the revenues shall be credited against the loan.
Total tax abatements were $168,643 for the fiscal year. •A sales tax rebate with a local auto dealership in which the City authorized a loan in the amount of $500,000.
The sales tax base will be 100% of the sales projections and the City will retain the first 50% of the sales tax collected. The second 50% will be shared will be shared by the City and the dealership. The City will use the portion to be credited against the $500,000 loan. Upon payment of the $500,000 loan, the City will then disburse the sales tax collected up to a maximum of $500,000. A combination of the sales tax credit for the loan of $500,000 plus the sales tax rebate will not exceed $1,000,000. The City is in discussion with dealership regarding the payment of loan and the status of their planned expansion. •A tax abatement to assist a new RV dealership to serve as a sales tax rebate and job creation covenant. City will rebate 26% of the sales tax portion over $180,000 if the gross taxable sales at the property exceeds $18,000,000. The rebate is restricted to a maximum of $72,000 per year and shall not exceed $504,000 over 7 year period. Tax rebated in fiscal year was $21,313.
NOTE 20: FUND BALANCE AND NET POSITION
A. Net investment in capital assets
The breakdown for net investment in capital assets for the year ended June 30, 2025 is as follows:
Total
Governmental Water Golf Sewer and Storm Business-Type
Activities Fund Fund Drain Fund Activities
Capital assets, net of
accumulated depreciation 322,214,735$ 52,768,386$ 13,521,879$ 23,854,938$ 90,145,203$ Less:
Bonds, notes and finance
purchase agreements (58,906,185) - (1,170,000) - (1,170,000) Unamortized premiums (6,598,107) -
Unamortized deferred outflows 5,774,835 -
Leases payable (1,686,234) - (347,419) - (347,419)
Subscriptions payable (1,001,224) - - -
Capital related, non-debt payable (7,702,358) (267,845) - (239,821) (507,666) Net investment in capital assets 252,095,462$ 52,500,541$ 12,004,460$ 23,615,117$ 88,120,118$ Business-Type Activities
78 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 20: FUND BALANCE AND NET POSITION (CONTINUED)
B. Fund Balance Classifications
NOTE 21: RESTATEMENTS
A. Error Correction
The City discovered a previously unrecorded Subscription related asset and the associated liability in FY 2025. The adjustment was corrected on the General fund as a net adjustment of $113,971 for the adjustment to subscription activity, an increase of $437,969 for additional capital assets, and a decrease of $323,998 for related liabilities.
B. Changes in Accounting Principle
For fiscal year ended June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences, which updated the recognition and measurement guidance for compensated absences, to align recognition and measurement under a single unified model to better meet the needs of financial statement users; refer to note 1.
CIP Other Total
Housing Grant Governmental Governmental
General Authority Fund Funds Funds
Nonspendable
Notes and Loans Receivable 756,982$ -$ -$ -$ 756,982$ Inventories - - - 10,537 10,537 Prepaid Costs 405,169 - - 2,206,847 2,612,016 Advances to Other Funds 7,297,410 - - - 7,297,410 Total Nonspendable 8,459,561 - - 2,217,384 10,676,945 Restricted
Purpose of Grant Program - 4,586,379 - 30,578,332 35,164,711 Street Lighting - - - 2,105,366 2,105,366 CATV Public Access - - - 1,395,899 1,395,899 Art in Public Places - - - 654,640 654,640 Total Restricted - 4,586,379 - 34,734,237 39,320,616 Assigned
Assigned for Emergency Reserve 14,849,685 - - - 14,849,685 Assigned for Stability Reserve 19,799,580 - - - 19,799,580 Assigned for CMSC Building
Expansion Project 10,164,563 - - 1,544,666 11,709,229 Assigned for Woodruff Avenue
Street Improvement Project - - - 597,433 597,433 Assigned for Capital Projects 4,520,351 - - 10,818,099 15,338,450 Total Assigned 49,334,179 - - 12,960,198 62,294,377 Unassigned 113,380 - (3,443,746) (305,019) (3,635,385) Total Fund Balance / (Deficit) 57,907,120$ 4,586,379$ (3,443,746)$ 49,606,800$ 108,656,553$ 79 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 21: RESTATEMENTS (CONTINUED)
NOTE 22: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Downey that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. The City Council elected to become the Successor Agency for the former redevelopment agency.
The assets and liabilities of the former redevelopment agency were transferred to the Successor Agency to the Community Development Commission of the City of Downey on February 1, 2012, as a result of the dissolution of the former redevelopment agency.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
June 30, 2024 Changes in
As Previously Error Accounting June 30, 2024
Reported Correction Principle As Restated
Government-wide
Governmental activities 147,419,453$ 437,969$ 6,031,400$ 153,888,822$ Business-type activities 98,509,068 - 109,650 98,618,718 Total government-wide 245,928,521$ 437,969$ 6,141,050$ 252,507,540$ Governmental funds
Major funds
General fund 59,125,098$ 323,998$ -$ 59,449,096$ Housing Authority 4,345,416 - - 4,345,416
CIP Grant Fund (2,408,610) - -(2,408,610)
COVID-19 Grants 59,437,812 - -59,437,812
Nonmajor funds 120,499,716 - - 120,499,716
Total governmental funds 240,999,432$ 323,998$ -$ 241,323,430$ Proprietary funds
Major funds
Water 56,089,954$ -$ 42,563$ 56,132,517$
Golf 17,056,878 - - 17,056,878
Sewer and Stormwater Drain 31,699,227 - 67,087 31,766,314 Internal Service Funds 7,554,408 - 4,491,066 12,045,474 Total proprietary funds 112,400,467$ -$ 4,600,716$ 117,001,183$ 80 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 22: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED)
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.
The City is acting in a fiduciary capacity for the assets and liabilities. Disclosures related to these transactions are as follows:
A. Cash and investments
Cash and investments reported in the accompanying financial statements consisted of the following:
B. Long-Term Debt
The following long-term debts were transferred from the Redevelopment Agency to the Successor Agency on February 1, 2012, as a result of the dissolution. A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2025, follows:
Bonds Payable
1997 Tax Allocation Bonds Payable
In 1997 the Community Development Commission issued $9,925,000 in Tax Allocation Bonds, partially to advance refund the existing 1990 Tax Allocation bond issue, which had a balance outstanding of $4,470,000, and to repay the City for advances of $3,970,508 plus interest. The bonds have an average interest rate of 5.1%. U.S. Bank serves as trustee for payment of principal and interest. The balance outstanding at June 30, 2025, is $2,265,000.
The future debt service requirements on these bonds are as follows:
The outstanding bonds contain a provision that if any event of default should occur or continue to occur, the Trustee may, with the prior written consent of the Bond Insurer, and if request by the Bond Insurer and at the written direction of the Owners of a majority in aggregate principal amount of the Bonds at the time outstanding shall, (a) upon notice in writing to the Commission, declare the principal of all of the Bonds then outstanding, and the interest accrued Cash and investments pooled with the City 1,403,302$
Cash and investments with fiscal agent 643,569
2,046,871$
Balance Balance Due Within
June 30, 2024 Addition Deletion June 30, 2025 One Year
Bonds payable 2,765,000$ -$ 500,000$ 2,265,000$ 525,000$ Advances from City 8,975,311 187,969 554,844 8,608,436 - Advances from County 39,564,705 2,672,689 1,383,431 40,853,963 - Total long-term liabilities 51,305,016$ 2,860,658$ 2,438,275$ 51,727,399$ 525,000$ Year Ending June 30, Principal Interest Total
2026 525,000$ 102,628$ 627,628$
2027 550,000 75,081 625,081
2028 580,000 46,125 626,125
2029 610,000 15,631 625,631
Total 2,265,000$ 239,465$ 2,504,465$
81 CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 22: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED)
thereon, to be due and payable immediately, of (b) enforce any rights of the Trustee under or with respect to the Owners of the Bonds for the purpose of exercising and prosecuting on their behalf such rights and remedies as may be available to such Owners under the provisions of the Bonds, the Indenture and applicable provisions of any law.
Pledged Revenue
The City pledged, as a security for bonds issued through the Community Development Commission, a portion of tax increment revenue that it receives. Assembly Bill 1X26 provided that upon dissolution of the Redevelopment Agencies (known as the Community Development Commission), property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $2,504,465 with annual debt service requirements indicated above.
For the current year, the total property tax revenue recognized by the Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $1,330,642 and the debt obligation on the bonds was $628,894.
Advances from City
The DOF issued a Finding of Completion on May 15, 2013, in which DOF concurred that the Successor Agency has made full payments of any payments required as a result of the due diligence reviews. The Finding of Completion allows the placement of loan agreements between the former redevelopment agency and the City on the ROPS, as an enforceable obligation, provided the oversight board makes a finding that the loan was for legitimate redevelopment purposes. Loan repayments could begin in the 2015-16, fiscal year as governed by the criteria in the health and code safety section. When the repayments begin, 20% of the repayments of the loan agreement amounts are to be allocated to the Housing Successor Agency. As of June 30, 2025, the long-term advances totaled $8,608,436. As of June 30, 2025, $7,297,410 is reported in the General Fund and $1,311,026 is reported in the Housing Authority Special Revenue Fund.
Advances from County
As part of the City’s redevelopment program, the City and County of Los Angeles have entered into a tax increment pass-through deferral agreement. This agreement specifies that the City will defer the payment of all current tax increment pass-through due to the County, until some future date, when certain conditions are met. Until that time, the County will charge 7% interest on the outstanding deferral amount. During the year, there were no pass-through agreement amounts owed to the County that were deferred. Interest of $2,672,689 was also accrued during the year on the outstanding deferral amount still owing. The amount owed the County, including accrued interest, at June 30, 2025, was $40,853,963.
82 Annual Comprehensive
Financial
Report
Fiscal Year Ended June 30, 2025
Required
Supplemental
Information
83 CITY OF DOWNEY, CALIFORNIA
Schedule of Changes in Net Pension Liability and Related Ratios Miscellaneous Plan
As of June 30, for the Last Ten Fiscal Years
2025 2024 2023 2022 2021
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020
TOTAL PENSION LIABILITY
Service cost 2,849,716$ 3,093,174$ 3,157,044$ 2,872,012$ 2,859,113$ Interest on total pension liability 15,902,475 15,490,534 14,909,880 14,690,041 14,297,751 Changes of benefit terms - 330,601 - --
Changes of assumptions - - 6,314,571 --
Difference between expected and actual experience 560,251 2,367,489 (1,655,691) (521,832) (82,862) Benefit payments, including refunds of employee
contributions (13,373,152) (12,730,963) (11,904,687) (11,561,991) (10,747,851) Net change in total pension liability 5,939,290 8,550,835 10,821,117 5,478,230 6,326,151 Total pension liability-beginning 235,172,125 226,621,290 215,800,173 210,321,943 203,995,792 Total pension liability-ending (a) 241,111,415 235,172,125 226,621,290 215,800,173 210,321,943
PLAN FIDUCIARY NET POSITION
Contributions-employer 3,892,560 3,904,410 3,686,157 39,587,168 5,960,428 Contributions-employee 1,280,700 1,156,124 1,246,789 1,233,750 1,211,665 Differences in projected and actual earnings -----
Net investment income 17,874,789 11,411,679 (15,623,270) 35,352,353 7,030,477 Benefit payments, including refunds of employee
contributions (13,373,152) (12,730,963) (11,904,687) (11,561,991) (10,747,851) Net plan to plan resource movement - - (30) 3,965 -
Administrative expense (155,331) (137,724) (130,828) (145,392) (200,597) Other miscellaneous income/(expense)-----
Net change in fiduciary net position 9,519,566 3,603,526 (22,725,869) 64,469,853 3,254,122 Plan fiduciary net position-beginning 190,893,826 187,290,300 210,016,169 145,546,316 142,292,194 Plan fiduciary net position-ending (b) 200,413,392 190,893,826 187,290,300 210,016,169 145,546,316 Net pension liability/(asset) (a) - (b) 40,698,023$ 44,278,299$ 39,330,990$ 5,784,004$ 64,775,627$ Plan fiduciary net position as a percentage of the
total pension liability 83.1% 81.2% 82.6% 97.3% 69.2%
Covered payroll 16,902,590$ 16,918,780$ 16,964,041$ 15,170,622$ 14,924,957$ Plan net pension liability/(asset) as a percentage of
covered payroll 240.8% 261.7% 231.8% 38.1% 434.0%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
Benefit Changes : The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurre d on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes of Assumptions : There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016.
84 2020 2019 2018 2017 2016
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
2,845,628$ 2,747,310$ 2,636,289$ 2,361,815$ 2,372,336$ 13,871,616 13,432,640 13,024,839 12,804,332 12,400,751 - ----
- (1,002,999) 10,503,420 -(2,930,596)
279,451 793,693 (1,684,960) (437,509) (872,403) (10,614,492) (10,123,596) (9,484,059) (9,182,237) (8,927,251) 6,382,203 5,847,048 14,995,529 5,546,401 2,042,837 197,613,589 191,766,541 176,771,012 171,224,611 169,181,774 203,995,792 197,613,589 191,766,541 176,771,012 171,224,611 5,194,316 4,644,243 4,191,836 3,645,344 3,324,338 1,290,943 1,259,290 1,209,428 1,158,399 1,307,613 - ---(6,742,788)
8,947,221 10,970,946 13,489,599 600,935 9,576,038 (10,614,492) (10,123,596) (9,484,059) (9,182,237) (8,927,251) - (320) (957) -9,214
(98,174) (204,781) (180,405) (76,817)(141,638) 320 (388,883) - --
4,720,134 6,156,899 9,225,442 (3,854,376) (1,594,474) 137,572,060 131,415,161 122,189,719 126,044,095 127,599,058 142,292,194 137,572,060 131,415,161 122,189,719 126,004,584 61,703,598$ 60,041,529$ 60,351,380$ 54,581,293$ 45,220,027$
69.8% 69.6% 68.5% 69.1% 73.6%
14,982,015$ 14,116,181$ 13,171,100$ 12,471,112$ 11,295,425$ 411.9% 425.3% 458.2% 437.7% 400.3%
85 CITY OF DOWNEY, CALIFORNIA
Schedule of Changes in Net Pension Liability and Related Ratios Safety Plan
As of June 30, for the Last Ten Fiscal Years
2025 2024 2023 2022 2021
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020
TOTAL PENSION LIABILITY
Service cost 8,121,275$ 7,709,480$ 7,775,844$ 7,124,490$ 7,169,250$ Interest on total pension liability 34,326,134 33,056,771 31,720,758 30,838,840 29,942,370 Changes of benefit terms - 185,551 - --
Changes of assumptions - - 14,719,478 --
Difference between expected and actual experience 4,140,257 4,710,914 (1,467,525) (3,092,936) 2,675,792 Benefit payments, including refunds of employee
contributions (27,410,902) (26,020,784) (23,973,965) (22,290,600) (20,625,915) Net change in total pension liability 19,176,764 19,641,932 28,774,590 12,579,794 19,161,497 Total pension liability-beginning 502,984,755 483,342,823 454,568,233 441,988,439 422,826,942 Total pension liability-ending (a) 522,161,519 502,984,755 483,342,823 454,568,233 441,988,439
PLAN FIDUCIARY NET POSITION
Contributions-employer 10,173,425 9,979,424 9,088,696 94,012,641 13,218,555 Contributions-employee 2,828,996 2,657,998 2,538,089 2,467,916 2,433,973 Differences in projected and actual earnings -----
Net investment income 38,473,835 24,241,149 (33,169,880) 73,568,416 14,351,500 Benefit payments, including refunds of employee
contributions (27,410,902) (26,020,784) (23,973,965) (22,290,600) (20,625,915) Net plan to plan resource movement - - 30 (3,965)-
Administrative expense (332,826) (293,010) (276,746) (296,482) (405,763) Other miscellaneous income/(expense)-----
Net change in fiduciary net position 23,732,528 10,564,777 (45,793,776) 147,457,926 8,972,350 Plan fiduciary net position-beginning 409,026,492 398,461,715 444,255,491 296,797,565 287,825,215 Plan fiduciary net position-ending (b) 432,759,020 409,026,492 398,461,715 444,255,491 296,797,565 Net pension liability/(asset) (a) - (b) 89,402,499$ 93,958,263$ 84,881,108$ 10,312,742$ 145,190,874$ Plan fiduciary net position as a percentage of the
total pension liability 82.9% 81.3% 82.4% 97.7% 67.2%
Covered payroll 24,909,468$ 24,922,578$ 24,780,834$ 19,537,373$ 19,075,819$ Plan net pension liability/(asset) as a percentage of
covered payroll 358.9% 377.0% 342.5% 52.8% 761.1%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
Benefit Changes : The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurre d on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes of Assumptions : There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016.
86 2020 2019 2018 2017 2016
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
6,716,100$ 6,437,149$ 6,338,175$ 5,590,668$ 5,458,319$ 28,659,471 27,362,871 26,270,785 25,769,928 24,744,572 - ----
- (1,530,502) 22,209,649 -(6,140,951)
3,650,077 2,585,511 (5,710,849) 160,089 (3,331,302) (20,044,668) (18,865,980) (18,013,052) (17,329,717) (16,721,908) 18,980,980 15,989,049 31,094,708 14,190,968 4,008,730 403,845,962 387,856,913 356,762,205 342,571,237 338,562,507 422,826,942 403,845,962 387,856,913 356,762,205 342,571,237 11,639,905 10,227,586 8,809,223 8,092,171 6,745,873 2,388,761 2,184,777 2,003,302 1,996,000 1,919,372 - ---(13,442,866)
18,021,079 21,925,706 26,775,670 1,189,163 18,916,599 (20,044,668) (18,865,980) (18,013,052) (17,329,717) (16,721,908) - (642) - -(191)
(196,971) (407,843) (358,050) (151,578) (279,890) 642 (774,501) - --
11,808,748 14,289,103 19,217,093 (6,203,961) (2,863,011) 276,016,467 261,727,364 242,510,271 248,714,232 251,581,146 287,825,215 276,016,467 261,727,364 242,510,271 248,718,135 135,001,727$ 127,829,495$ 126,129,549$ 114,251,934$ 93,853,102$
68.1% 68.3% 67.5% 68.0% 72.6%
22,440,568$ 17,853,242$ 17,850,987$ 17,580,987$ 17,248,670$ 601.6% 716.0% 706.6% 649.9% 544.1%
87 CITY OF DOWNEY, CALIFORNIA
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years 1
Covered/Contribution as a
Fiscal Year Actuarially Actual Contribution Covered- % of Covered/ Ending Determined Employer Deficiency Employee Covered Employee June 30, Contribution Contributions (Excess) Payroll Payroll 2025 3,811,227$ 3,811,227$ -$ 16,090,997$ 23.7% 2024 3,886,950 3,886,950 - 16,902,590 23.0% 2023 3,907,132 3,907,132 - 16,918,780 23.1% 2022 3,688,975 3,688,975 - 16,964,041 21.7% 2021 6,483,145 39,588,385 (33,105,240) 15,170,622 261.0% 2020 5,961,098 5,961,098 - 14,924,957 39.9% 2019 5,196,100 5,196,100 - 14,982,015 34.7% 2018 4,645,952 4,645,952 - 14,116,181 32.9% 2017 4,191,472 4,191,472 - 13,171,100 31.8% 2016 3,642,086 3,642,086 - 12,471,112 29.2% 2025 9,014,264$ 9,014,264$ -$ 26,367,775$ 34.2% 2024 10,170,296 10,170,296 - 24,909,468 40.8% 2023 9,971,088 9,971,088 - 24,922,578 40.0% 2022 9,058,878 9,058,878 - 24,780,834 36.6% 2021 14,194,005 94,011,449 (79,817,444) 19,537,373 481.2% 2020 13,217,885 13,217,885 - 19,075,819 69.3% 2019 11,638,120 11,638,120 - 22,440,568 51.9% 2018 10,225,876 10,225,876 - 17,853,242 57.3% 2017 8,809,589 8,809,589 - 17,580,987 50.1% 2016 8,092,171 8,092,171 - 14,881,199 54.4% Notes to Schedule:
Valuation Date:June 30, 2023
Methods and assumptions used to determine contribution rates:
Single and Agent Employers Entry Age Actuarial Cost Method Amortization method Level percentage of payroll
Assets valuation method Direct rate smoothing
Inflation 2.30%
Payroll growth 2.80%
Investment rate of return
Retirement age
Mortality The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
Miscellaneous Agent, Multiple-Employer Pension Plan
Safety Agent, Multiple-Employer Pension Plan
6.80% Net of Pension Plan Investment and Administrative Expenses; includes Inflation
The probabilities of retirement are based on the 2021 CalPERS Experience Study.
88 7+,63$*(,17(17,21$//</()7%/$1.
89 CITY OF DOWNEY, CALIFORNIA
Schedule of Changes in Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years 1
2025 2024 2023 2022
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021
TOTAL OPEB LIABILITY
Service cost 508,056$ 452,559$ 434,244$ 383,096$ Interest on total pension liability 1,233,822 998,308 966,883 985,640 Changes due to plan experience - 3,427,200 --
Changes of assumptions (858,286) 40,637 92,955 1,185,773 Difference between expected and actual experience ---(288,995) Benefit payments, including refunds of employee
contributions (1,003,700) (888,618) (848,120) (911,116) Net change in total OPEB liability (120,108) 4,030,086 645,962 1,354,398 Total OPEB liability-beginning 20,387,541 16,357,455 15,711,493 14,357,095 Total OPEB liability-ending (a)20,267,433 20,387,541 16,357,455 15,711,493
PLAN FIDUCIARY NET POSITION
Contributions-employer 1,003,700 888,618 977,849 911,116 Net investment income 1,102,358 581,316 (1,441,009) 2,322,102 Benefit payments, including refunds of employee
contributions (1,003,700) (888,618) (848,120) (911,116) Net plan to plan resource movement - 25,638 --
Administrative expense (3,278) (2,746) (2,727) (3,196) Other miscellaneous income/(expense)----
Net change in fiduciary net position 1,099,080 604,208 (1,314,007) 2,318,906 Plan fiduciary net position-beginning 10,057,876 9,453,668 10,767,675 8,448,769 Plan fiduciary net position-ending (b)11,156,956 10,057,876 9,453,668 10,767,675 Net OPEB liability/(asset) (a) - (b) 9,110,477$ 10,329,665$ 6,903,787$ 4,943,818$ Plan fiduciary net position as a percentage of the
total OPEB liability 55.0% 49.3% 57.8% 68.5%
Covered-employee payroll 45,817,701$ 45,140,019$ 48,236,864$ 46,751,162$ Plan net OPEB liability/(asset) as a percentage of
covered-employee payroll 19.9% 22.9% 14.3% 10.6%
Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios:
1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only eight years are shown.
Benefit Changes : None
Changes of Assumptions : None
90 2021 2020 2019 2018
6/30/2020 6/30/2019 6/30/2018 6/30/2017
371,938$ 359,310$ 347,999$ 337,046$ 953,019 1,102,708 1,056,820 1,015,622 - ---
- (887,283) --
- (1,107,411) --
(815,594) (814,729) (756,887) (838,553) 509,363 (1,347,405) 647,932 514,115 13,847,732 15,195,137 14,547,205 14,033,090 14,357,095 13,847,732 15,195,137 14,547,205 1,104,427 814,729 966,887 1,008,553 276,981 458,848 532,762 623,878 (815,594) (814,729) (756,887) (838,553) - ---
(3,937) (1,591) (3,569) (3,167) - - (8,860) -
561,877 457,257 730,333 790,711 7,886,892 7,429,635 6,699,302 5,908,591 8,448,769 7,886,892 7,429,635 6,699,302 5,908,326$ 5,960,840$ 7,765,502$ 7,847,903$
58.8% 57.0% 48.9% 46.1%
46,420,079$ 44,034,470$ 36,149,553$ 34,730,877$
12.7% 13.5% 21.5% 22.6%
91 CITY OF DOWNEY, CALIFORNIA
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years 1
Covered/Contribution as a
Fiscal Year Actuarially Actual Contribution Covered- % of Covered/ Ending Determined Employer Deficiency Employee Covered Employee June 30, Contribution Contributions (Excess) Payroll Payroll 2025 1,556,937$ 1,238,704$ 318,233 49,897,916$ 2.5% 2024 1,110,926 1,003,700 107,226 45,817,701 2.2% 2023 1,098,290 888,618 209,672 45,140,019 2.0% 2022 977,849 977,849 - 48,236,864 2.0%
2021 958,316 911,116 47,200 46,751,162 1.9%
2020 1,112,086 1,104,427 7,659 46,420,079 2.4% 2019 1,103,345 814,699 288,646 44,034,470 1.9% 2018 957,045 966,887 (9,842) 36,149,553 2.7%
Notes to Schedule: None.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method Level percentage of payroll
Assets valuation method Market value
Inflation 2.50%
Payroll growth 2.50%
Investment rate of return
Healthcare cost trends
Retirement age
Mortality
Agent-Multiple Employer OPEB Plan
6.55% net of plan investment expenses and including inflation 50 to 75
2021 CalPERS Experience study; Improvement using MacLeod Watts Scale 2022.
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. *Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2024 were from the June 30, 2023 actuarial valuation.
9.0% in 2024 fluctuating down to 3.9% by 2075
92 CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual General Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 82,163,500$ 83,532,344$ 83,147,011$ (385,333)$ Licenses and permits 2,835,700 2,681,028 2,995,661 314,633 Intergovernmental 1,681,000 1,889,342 1,864,856 (24,486) Charges for services 15,545,192 15,886,166 16,579,293 693,127 Use of money and property 3,590,465 4,570,561 5,975,544 1,404,983 Fines and forfeitures 1,490,900 1,434,877 1,438,599 3,722 Miscellaneous 4,578,250 5,404,883 5,638,592 233,709 Total revenues 111,885,007 115,399,201 117,639,556 2,240,355
EXPENDITURES
General government:
General government administration 955,053 1,158,053 1,141,890 16,163 City council 348,326 348,326 313,337 34,989 City attorney 367,941 381,048 229,381 151,667 City clerk 1,197,600 1,197,600 933,808 263,792 City manager 2,436,819 2,495,544 2,665,160 (169,616) Human resources 1,771,064 1,771,064 1,595,904 175,160 Finance 1,631,895 1,760,895 1,885,587 (124,692) Finance - POB transfer 7,641,064 7,641,064 - 7,641,064 Total general government 16,349,762 16,753,594 8,765,067 7,988,527 Public safety:
Police 42,004,217 43,050,595 44,001,948 (951,353) Fire 29,167,878 29,830,124 31,986,480 (2,156,356) Total public safety 71,172,095 72,880,719 75,988,428 (3,107,709) Public works:
Public works administration 473,014 473,014 506,637 (33,623) Engineering 1,440,924 1,635,678 1,960,430 (324,752) Maintenance 6,054,191 6,181,867 6,492,005 (310,138) Utilities 3,326,005 3,738,426 4,095,559 (357,133) Total public works 11,294,134 12,028,985 13,054,631 (1,025,646) Community development:
Building and safety 1,959,452 1,982,452 1,481,424 501,028 Code enforcement 1,144,120 1,144,120 1,099,995 44,125 Planning 2,996,278 3,478,078 2,657,805 820,273 Total community development 6,099,850 6,604,650 5,239,224 1,365,426 Community services:
Recreation department 10,763,291 10,961,535 10,801,607 159,928 Total community services 10,763,291 10,961,535 10,801,607 159,928 Capital Outlay 300,000 4,479,081 2,287,584 2,191,497 Debt service:
Principal retirement 9,125 9,125 3,000 6,125
Total expenditures 115,988,257 123,717,689 116,139,541 7,578,148 Excess (deficiency) of revenues
over (under) expenditures (4,103,250) (8,318,488) 1,500,015 9,818,503
OTHER FINANCING SOURCES (USES)
Transfers in 6,824,830 6,824,830 5,930,048 (894,782) Transfers out (1,415,583) (1,545,583) (10,526,710) (8,981,127) Proceeds from debt refunding - - 1,305,075 1,305,075 Proceeds from sale of capital assets - 249,596 249,596 - Total other financing sources (uses) 5,409,247 5,528,843 (3,041,991) (8,570,834) Net change in fund balances 1,305,997$ (2,789,645)$ (1,541,976) 1,247,669$ Fund balances-beginning 59,125,098
Fund balances-ending 57,907,120$
93 CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Housing Authority
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 65,000$ 65,000$ 181,853$ 116,853$ Miscellaneous 95,000 95,000 71,875 (23,125) Total revenues 160,000 160,000 253,728 93,728
EXPENDITURES
Current:
Economic development & housing 12,765 12,765 12,765 - Total expenditures 12,765 12,765 12,765 - Net change in fund balances 147,235$ 147,235$ 240,963 93,728$ Fund balances-beginning 4,345,416
Fund balances-ending 4,586,379$
94 CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual CIP Grant Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 23,713,267$ 23,713,267$ 1,641,222$ (22,072,045)$ Use of money and property - - 2,132 2,132
Total revenues 23,713,267 23,713,267 1,643,354 (22,069,913)
EXPENDITURES
Capital outlay 23,734,542 26,467,812 2,678,490 23,789,322 Total expenditures 23,734,542 26,467,812 2,678,490 23,789,322 Net change in fund balances (21,275)$ (2,754,545)$ (1,035,136) 1,719,409$ Fund balances (deficit)-beginning (2,408,610)
Fund balances (deficit)-ending (3,443,746)$
95 CITY OF DOWNEY, CALIFORNIA
Notes to Required Supplementary Information
For the Year Ended June 30, 2025
NOTE 1: BUDGETARY DATA
General Budget Policies
The City is required by its charter to adopt an annual budget on or before June 30th for the ensuing fiscal year.
From the effective date of the budget, the proposed expenditures become appropriations to the various City departments. This “appropriated budget” covers substantially all City expenditures, with the exception of debt service on bonds, which expenditures constitute legally authorized “non-appropriated budget.” There are no significant non-budgeted activities. The City Council passes various amendments to the budget during the year.
The City prepares its budgets on the basis of actual expenditures and, accordingly, the budget amounts included in the accompanying financial statements are presented on a basis substantially consistent with generally accepted accounting principles. The level of budgetary control is the department level, classified in accordance with Note 1D, within the fund. However, the City Manager is authorized to transfer amounts between divisions within a department without seeking City Council approval.
The LSTA Grant fund did not adopt a budgets for fiscal year 2024-25 and therefore budgetary information is not presented.
Expenditures in Excess of Appropriations
The following funds reported expenditures in excess of appropriations:
The following departments/funds reported expenditures in excess of appropriations:
Nonmajor Governmental Funds:
Gas Tax 3,510$
SB1 Transportation 1,428,296
Transit Measure M 152,592
Art in Public Places 23,088
Measure S Debt Service 451,759
Major Fund:
General Fund
City manager 169,616$
Finance 124,692
Police 951,353
Fire 2,156,356
Public works administration 33,623
Engineering 324,752
Maintenance 310,138
Utilities 357,133
4,427,663$
96 OTHER GOVERNMENTAL FUNDS
The combining statements for Other Governmental Funds represent a consolidation of the information for specific funds contained in the Supplementary Financial Statements. These statements summarize the financial information contained in Other Special Revenue Funds, another Capital Projects Fund, Internal Service Funds and Custodial Funds.
97 OTHER SPECIAL REVENUE FUNDS
Special Revenue Funds account for taxes and other revenues set aside in accordance with law or administrative regulations for a specified purpose.
COVID-19 Grants Fund is used to account for special revenues from federal funding and payments from funding due to the coronavirus pandemic.
Waste Reduction Fund is used to account for funds collected pursuant to AB 939 and used to pay for recycling and other waste reduction programs.
Street Lighting Fund is used to account for the property taxes and assessments levied on real property located within the City’s Street Lighting District. The revenues in this fund are used to pay for the electric and other costs associated with the streetlights, traffic signals and street trees.
HOME Fund is used to account for the operations of the HOME Investment Partnership Program. Major sources of revenues are repayments received on rehab loans.
Hazardous Material Fund is used to account for all supporting operations related to the hazardous material program administered by the City’s Fire Department.
CATV Public Access Fund is used to account for revenues received from the City’s cable TV franchise company pursuant to the franchise agreements.
Air Quality Fund is used to account for all charges related to air quality, such as carpooling, etc.
Grants Fund is used to account for revenues received from various grants for park and other non-street capital improvements.
CDBG Fund is required by federal regulations to account for the use of grant funds received from the federal government. Other revenues in this fund are reimbursements of loans to beneficiaries of a particular housing program or the sale of real property in the furtherance of block grant programs. All such other revenues are “program income” and are considered to be federal revenues.
Asset Forfeiture Fund is used to account for all revenues and expenditures related to the federal asset forfeiture program.
Transit Prop C Fund accounts for restricted transit revenues the City receives pursuant to a County ballot measure, Proposition C. Funds are used for eligible street improvement projects.
Transit Prop A Fund accounts for special revenues the City receives pursuant to a County ballot measure. The City uses funds to support senior citizen and disabled bus operation run by the City, along with the Downey Link Fixed Route Service.
Transit Measure R Fund accounts for ballot Measure R funds approved by Los Angeles County. Funds are used to relieve traffic congestion by providing for mass transit systems, roadway repairs, traffic signal synchronization and pedestrian walkways and paths.
Gas Tax Fund is required by state law to account for gas taxes allocated by the State. The State levies various taxes on gasoline and other motor fuels, which are allocated among the State, cities and counties by formula.
LSTA Grant Fund is used to account for revenues received from library grants.
SB1 Transportation Fund This revenue is known as the road repair and accountability act of 2017 and is a motor vehicle fuel tax enacted to address basic road maintenance, rehabilitation, and critical safety needs on state highway and local streets and road systems. Taxes and fees received by the City will be deposited into a newly created Road Maintenance and Rehabilitation Account (RMRA) Fund. 98 OTHER SPECIAL REVENUE FUNDS (CONTINUED)
Transit Measure M Fund This revenue is derived from a County voter approved sales tax to meet the transportation needs of the County of Los Angeles. The expenditures for this fund must be related to the transportation projects and programs, such as roadway repairs, traffic signal synchronization and pedestrian walkways and paths, Measure M increases to 1% once Measure R expires in 2039.
Art in Public Places Fund is used to account for revenues and expenditures for the original artworks that are accessible to the public throughout the City.
Measure W -Sewer & Storm Drain Fund This revenue is derived from a County voter approved parcel tax to provide funding for projects to improve sewer and storm drain filtration.
Asset Forfeiture - State Fund is used to account for all revenues and expenditures related to the state asset forfeiture program.
Measure S Operating Fund – The Measure S Operating Fund is used to record all Measure S Transaction and Use Tax Revenue. This revenue is derived from November 2016 City of Downey voter approved ½ percent increase of the Transaction and Use Tax. This Measure expires in 20 years and cannot be renewed without voter approval.
City Council directed staff to use Measure S revenues for recruitment of Public Safety Personnel and cover expenses related to debt service of the Neighborhood Capital Improvement Program, Equipment and CIP related to Public Safety Programs.
CAPITAL PROJECTS FUND
City Capital Project Fund is used to account for City projects funded by various sources.
Measure S Capital Fund is used to account for Measure S funded infrastructure improvements and public safety related capital acquisitions and purchased public safety equipment. Equipment that is purchased was previously accounted for in Measure S Sales Tax Fund. However, since the fund is debt service equipment was transferred to the capital fund.
Measure D Capital Fund is used to account for Measure D funded general and public safety related expenditures.
DEBT SERVICE FUND
Debt Service Fund is used to account for the Pension obligation bonds.
Measure S Debt Service Fund is used to account for debt related transactions for debt secured by the Measure S half cent sales tax revenues. This includes the debt service for the 2017 Lease Revenue Bonds and various lease payments made for the acquisition of Public Safety equipment and vehicles.
Measure R Bond 2021A Fund is used to track the issuances of new bonds to be used to finance street projects funded by Measure M and Measure R sales tax revenues.
Measure M Bond 2021A Fund is used to track the issuances of new bonds to be used to finance street projects funded by Measure M and Measure R sales tax revenues.
99 CITY OF DOWNEY, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Pooled cash and investments 332,931$ 14,959$ 2,215,699$ 302,035$ Receivables:
Accounts - 47,674 77,939 -
Taxes - - 48,670 -
Notes and loans - -- 4,493,563
Inventory - -- -
Prepaid costs -6,266 - -
Due from other governments - -- 101,444
Restricted assets:
Cash and investments with fiscal agents - -- -
Total assets 332,931$ 68,899$ 2,342,308$ 4,897,042$
LIABILITIES
Accounts payable -$ 12,632$ 233,973$ 93,710$ Accrued liabilties 1,990 51,259 2,969 924
Unearned revenues 292,455 - -183,413
Due to other governments - -- 5,365
Due to other funds - 145,610 - -
Total liabilities 294,445 209,501 236,942 283,412
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - -- 4,493,563
Total deferred inflows of resources - -- 4,493,563
FUND BALANCES (DEFICITS)
Nonspendable -6,266 - -
Restricted 38,486 - 2,105,366 120,067
Assigned - -- -
Unassigned - (146,868) - -
Total fund balances (deficits) 38,486 (140,602) 2,105,366 120,067 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 332,931$ 68,899$ 2,342,308$ 4,897,042$ Special Revenue Funds
COVID-19
Grants
Waste
Reduction
Street
Lighting HOME
100
CITY OF DOWNEY, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Inventory
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total assets
LIABILITIES
Accounts payable
Accrued liabilties
Unearned revenues
Due to other governments
Due to other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
-$ 1,373,218$ 269,713$ 1,529,344$
- -- 252,017
- -- -
- -- -
- -- 10,537
- -- 9,921
- 22,681 39,123 41,345
- -- -
-$ 1,395,899$ 308,836$ 1,843,164$
-$-$-$ 243,415$
13,725 - 9,337 55,967
- -- 641,044
- -- -
144,426 - -689,818
158,151 - 9,337 1,630,244
- -- 69,922
- - - 69,922
- -- 20,458
- 1,395,899 299,499 122,540
- -- -
(158,151) - --
(158,151) 1,395,899 299,499 142,998 -$ 1,395,899$ 308,836$ 1,843,164$
Special Revenue Funds
Hazardous
Material
CATV Public
Access Air Quality Grants
101
CITY OF DOWNEY, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Inventory
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total assets
LIABILITIES
Accounts payable
Accrued liabilties
Unearned revenues
Due to other governments
Due to other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
-$ 555,846$ 4,689,071$ 7,977,175$
- -- -
- -- -
357,160 - --
- - --
- - --
220,118 - 21,000 -
1,439,830 - --
2,017,108$ 555,846$ 4,710,071$ 7,977,175$ 172,804$ -$ 1,264,807$ 182,533$
34,895 9,380 5,556 64,783
- 523,930 - -
- -- -
92,735 - --
300,434 533,310 1,270,363 247,316 357,160 - 21,000 -
357,160 - 21,000 -
- - --
1,359,514 22,536 3,418,708 7,729,859 - -- -
- -- -
1,359,514 22,536 3,418,708 7,729,859 2,017,108$ 555,846$ 4,710,071$ 7,977,175$ Special Revenue Funds
CDBG
Asset
Forfeiture Transit Prop C Transit Prop A
102
CITY OF DOWNEY, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Inventory
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total assets
LIABILITIES
Accounts payable
Accrued liabilties
Unearned revenues
Due to other governments
Due to other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
1,175,244$ -$ 419$ 5,475,055$
- 11,355 - -
- 268,776 - 547,820
- -- -
- -- -
- -- -
- -- -
- - - -
1,175,244$ 280,131$ 419$ 6,022,875$
88,953$ -$ -$ 3,902,732$
32,351 11,017 - 3,055
- - - -
- - - -
- 268,317 - -
121,304 279,334 - 3,905,787
- - - -
- - - -
- - - -
1,053,940 797 419 2,117,088
- - - -
- - - -
1,053,940 797 419 2,117,088
1,175,244$ 280,131$ 419$ 6,022,875$
LSTA Grant
SB1
Transportation
Special Revenue Funds
Transit
Measure R Gas Tax
103
CITY OF DOWNEY, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Inventory
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total assets
LIABILITIES
Accounts payable
Accrued liabilties
Unearned revenues
Due to other governments
Due to other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
2,451,956$ 656,770$ 11,382,792$ 97,279$ - -- -
- -- -
- -- -
- -- -
- -- -
- -- -
- -- -
2,451,956$ 656,770$ 11,382,792$ 97,279$ 795,844$ 2,130$ 118,174$ -$ 42,501 - --
- - 3,669,043 -
- - --
- - --
838,345 2,130 3,787,217 -
- - --
- - --
- - --
1,613,611 654,640 7,595,575 97,279 - -- -
- -- -
1,613,611 654,640 7,595,575 97,279 2,451,956$ 656,770$ 11,382,792$ 97,279$ Special Revenue Funds
Asset
Forfeiture -
State
Transit
Measure M
Art in Public
Places
Measure W -
Sewer and
Storm Drain
104
CITY OF DOWNEY, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Inventory
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total assets
LIABILITIES
Accounts payable
Accrued liabilties
Unearned revenues
Due to other governments
Due to other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
2,406,500$ 260,989$ 10,396,948$ 362,631$ - - 335,979 -
2,134,075 1,109,887 - -
- - - -
- - - -
- - - 2,190,660
- - 898,368 -
- - - -
4,540,575$ 1,370,876$ 11,631,295$ 2,553,291$ 3,432$ 3,342$ 395,530$ 362,631$ 146,162 3,957 3,522 -
- - - -
- - - -
- - 243,265 -
149,594 7,299 642,317 362,631
- - - -
- - - -
- - - 2,190,660
4,390,981 - - -
- 1,363,577 10,988,978 -
- - - -
4,390,981 1,363,577 10,988,978 2,190,660 4,540,575$ 1,370,876$ 11,631,295$ 2,553,291$ Special Revenue Funds
Measure S
Capital
City Capital
Projects
Capital Projects Funds
Measure S
Operating
Measure D
Operating
105
CITY OF DOWNEY, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Inventory
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total assets
LIABILITIES
Accounts payable
Accrued liabilties
Unearned revenues
Due to other governments
Due to other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
118$ 117,688$ 41,054$ -$
- - --
- - --
- - --
- - --
- - --
- 16,342 - -
844,665 2,528 155,253 1,629,177
844,783$ 136,558$ 196,307$ 1,629,177$ -$ 20,180$ 177,036$ 31,740$
247,350 116,378 1,546 2,823
- -- -
- -- -
- -- 1,004,696
247,350 136,558 178,582 1,039,259 - -- -
- -- -
- -- -
597,433 - --
- - 17,725 589,918
- -- -
597,433 - 17,725 589,918
844,783$ 136,558$ 196,307$ 1,629,177$ Debt Service
Measure S
Debt Service
Measure R
Bond 2021B
Measure M
Bond 2021A
Debt Service Funds
106
CITY OF DOWNEY, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Inventory
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total assets
LIABILITIES
Accounts payable
Accrued liabilties
Unearned revenues
Due to other governments
Due to other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total
Nonmajor
Funds
54,085,434$
724,964
4,109,228
4,850,723
10,537
2,206,847
1,360,421
4,071,453
71,419,607$
8,105,598$
861,447
5,309,885
5,365
2,588,867
16,871,162
4,941,645
4,941,645
2,217,384
34,734,237
12,960,198
(305,019)
49,606,800
71,419,607$
107
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes -$-$ 1,466,254$ -$
Intergovernmental 84,904 43,841 - 363,450 Charges for services - 422,372 1,736,171 -
Use of money and property 12,989 164 88,469 - Fines and forfeitures - -- -
Developer participation - -- -
Miscellaneous - 944 27,455 -
Total revenues 97,893 467,321 3,318,349 363,450
EXPENDITURES
Current:
General government - -- -
Public safety 84,904 - --
Community development - -- 542,821
Community services - -- -
Public works - 615,225 2,763,135 -
Capital outlay - -- -
Debt service:
Principal retirement - -- -
Interest expense and fiscal charges - -- -
Total expenditures 84,904 615,225 2,763,135 542,821 Excess (deficiency) of revenues
over (under) expenditures 12,989 (147,904) 555,214 (179,371)
OTHER FINANCING SOURCES (USES)
Transfers in - -- -
Transfers out - -- -
Leases financing - -- -
Total other financing sources (uses) - -- -
Net change in fund balances 12,989 (147,904) 555,214 (179,371) Fund balances (deficit)-beginning 25,497 7,302 1,550,152 299,438 Fund balances (deficit)-ending 38,486$ (140,602)$ 2,105,366$ 120,067$ Special Revenue Funds
COVID-19
Grants
Waste
Reduction
Street
Lighting HOME
108
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Community development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest expense and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Leases financing
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
-$ 96,641$ -$ -$
- - 148,927 1,803,345
172,940 - -237,718
- - 12,816 1,212
- -- -
- -- -
- -- 54,910
172,940 96,641 161,743 2,097,185 - -- 25,598
250,999 - -527,171
- -- 2,248,456
- -- 259,019
- - 183,413 -
- - -466,474
- -- -
- -- -
250,999 - 183,413 3,526,718
(78,059) 96,641 (21,670) (1,429,533) - - 21,891 2,646,160
- -- -
- -- -
- - 21,891 2,646,160
(78,059) 96,641 221 1,216,627
(80,092) 1,299,258 299,278 (1,073,629) (158,151)$ 1,395,899$ 299,499$ 142,998$ Special Revenue Funds
Hazardous
Material
CATV Public
Access Air Quality Grants
109
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Community development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest expense and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Leases financing
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
-$-$ 2,421,523$ 2,919,346$
791,505 - --
- - --
- 15,326 212,441 358,306
- -- -
- -- -
- -- 111,142
791,505 15,326 2,633,964 3,388,794 - -- -
- -- -
313,443 - --
- - -1,144,492
- - 54,082 441,964
- - 1,912,037 1,098,496
353,000 - -324,482
110,931 - -46,112
777,374 - 1,966,119 3,055,546
14,131 15,326 667,845 333,248 - -- 1,000,000
- - (1,000,000) -
- - --
- - (1,000,000) 1,000,000
14,131 15,326 (332,155) 1,333,248 1,345,383 7,210 3,750,863 6,396,611
1,359,514$ 22,536$ 3,418,708$ 7,729,859$ Special Revenue Funds
CDBG
Asset
Forfeiture Transit Prop C Transit Prop A
110
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Community development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest expense and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Leases financing
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
-$ -$ -$ 3,108,720$
- 3,153,118 - -
- -- -
66,058 - 17 318,312
- -- -
1,815,806 - - -
- - - -
1,881,864 3,153,118 17 3,427,032
- -- -
- -- -
- -- -
- -- -
129,826 22,645 - 10,900
1,900,757 121,875 - 7,940,396
- -- -
- -- -
2,030,583 144,520 - 7,951,296
(148,719) 3,008,598 17 (4,524,264)
- -- -
(838,000) (3,016,867) - -
- -- -
(838,000) (3,016,867) - -
(986,719) (8,269) 17 (4,524,264)
2,040,659 9,066 402 6,641,352
1,053,940$ 797$ 419$ 2,117,088$
Special Revenue Funds
Transit
Measure R Gas Tax LSTA Grant
SB1
Transportation
111
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Community development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest expense and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Leases financing
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
2,057,248$ -$ 1,440,724$ -$
- - -237
- - 274,515 -
107,841 - 505,577 3,784
- -- -
- -- -
- 99,287 8,000 -
2,165,089 99,287 2,228,816 4,021 - -- -
- -- -
- -- -
- -- -
85,832 20,235 206,430 - 2,156,761 14,703 555,944 - - - --
- - --
2,242,593 34,938 762,374 - (77,504) 64,349 1,466,442 4,021 - -- -
(1,023,000) - --
- - --
(1,023,000) - --
(1,100,504) 64,349 1,466,442 4,021 2,714,115 590,291 6,129,133 93,258 1,613,611$ 654,640$ 7,595,575$ 97,279$ Special Revenue Funds
Measure W -
Sewer and
Storm Drain
Asset
Forfeiture -
State
Transit
Measure M
Art in Public
Places
112
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Community development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest expense and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Leases financing
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
12,879,119$ 1,529,194$ -$ 2,686$
- - 335,979 -
- - - -
132,277 3,648 12,971 -
- - 3,462,692 -
- - --
- - 34,267 16,444
13,011,396 1,532,842 3,845,909 19,130 - 158,005 - 2,250
5,713,138 11,260 - 80,371
- - - -
- - - -
60,594 - 21,570 36,441
- - 6,242,771 2,313,264
- - - -
- - - -
5,773,732 169,265 6,264,341 2,432,326 7,237,664 1,363,577 (2,418,432) (2,413,196) - - 1,102,666 2,413,196
(8,514,393) - (1,141,500) -
- - --
(8,514,393) - (38,834) 2,413,196
(1,276,729) 1,363,577 (2,457,266) -
5,667,710 - 13,446,244 2,190,660
4,390,981$ 1,363,577$ 10,988,978$ 2,190,660$ Measure S
Operating
Measure D
Operating
City Capital
Projects
Measure S
Capital
Capital Projects FundsSpecial Revenue Funds
113
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Community development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest expense and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Leases financing
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
-$-$-$ -$
- - --
- - --
279,066 3,201 146 116
- -- -
- -- -
- 16,342 - -
279,066 19,543 146 116
- -2,2502,250
- 595,111 - -
- -- -
- -- -
- - 148,175 688,825
- 387,166 3,472,919 854,045
-
4,606,343 2,355,455 500,000 505,000 3,029,170 1,498,485 337,632 517,358 7,635,513 4,836,217 4,460,976 2,567,478 (7,356,447) (4,816,674) (4,460,830) (2,567,362) 7,641,064 4,341,900 838,000 1,023,000 - -- -
- 474,774 - -
7,641,064 4,816,674 838,000 1,023,000 284,617 - (3,622,830) (1,544,362)
312,816 - 3,640,555 2,134,280
597,433$ -$17,725$ 589,918$
Debt Service Funds
Debt Service
Measure S
Debt Service
Measure R
Bond 2021B
Measure M
Bond 2021A
114
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Community development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest expense and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Leases financing
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
Total
Nonmajor
Funds
27,921,455$
6,725,306
2,843,716
2,134,737
3,462,692
1,815,806
368,791
45,272,503
190,353
7,262,954
3,104,720
1,403,511
5,489,292
29,437,608
8,644,280
5,539,688
61,072,406
(15,799,903)
21,027,877
(15,533,760)
474,774
5,968,891
(9,831,012)
59,437,812
49,606,800$
115
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual COVID-19 Grants
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 900,000$ 900,000$ 84,904$ (815,096)$ Use of money and property 200,000 200,000 12,989 (187,011) Contributions - - - -
Other Revenue - - - -
- - - -
Total revenues 1,100,000 1,100,000 97,893 (1,002,107)
EXPENDITURES
Current:
Public safety 160,000 160,000 84,904 75,096
Total expenditures 160,000 160,000 84,904 75,096
Excess (deficiency) of revenues
over (under) expenditures 940,000 940,000 12,989 (927,011)
OTHER FINANCING SOURCES (USES)
Transfers out (900,000) (900,000) - 900,000
Total other financing sources (uses)(900,000) (900,000) - 900,000 Net change in fund balances 40,000$ 40,000$ 12,989 (27,011)$ Fund balances-beginning 25,497
Fund balances-ending 38,486$
116
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Waste Reduction
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 296,174$ 296,174$ 43,841$ (252,333)$ Charges for services 430,000 430,000 422,372 (7,628) Use of money and property - - 164 164
Other income - - 944 944
Total revenues 726,174 726,174 467,321 (258,853)
EXPENDITURES
Current:
Public works 930,288 930,288 615,225 315,063 Total expenditures 930,288 930,288 615,225 315,063 Net change in fund balances (204,114)$ (204,114)$ (147,904) 56,210$ Fund balances-beginning 7,302
Fund balances (deficit)-ending (140,602)$
11
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Street Lighting
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 1,451,000$ 1,451,000$ 1,466,254$ 15,254$ Charges for services 1,712,000 1,712,000 1,736,171 24,171 Use of money and property 35,000 35,000 88,469 53,469 Miscellaneous 3,000 3,000 27,455 24,455
Total revenues 3,201,000 3,201,000 3,318,349 117,349
EXPENDITURES
Current:
Public works 2,489,760 2,489,760 2,763,135 (273,375) Capital outlay 360,000 360,000 - 360,000 Total expenditures 2,849,760 2,849,760 2,763,135 86,625 Net change in fund balances 351,240$ 351,240$ 555,214 203,974$ Fund balances-beginning 1,550,152
Fund balances-ending 2,105,366$
11
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual HOME
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 2,041,697$ 2,041,697$ 363,450$ (1,678,247)$ Use of money and property 20,000 20,000 - (20,000) Total revenues 2,061,697 2,061,697 363,450 (1,698,247)
EXPENDITURES
Current:
Community development 1,730,872 1,730,872 542,821 1,188,051 Total expenditures 1,730,872 1,730,872 542,821 1,188,051 Net change in fund balances 330,825$ 330,825$ (179,371) (510,196)$ Fund balances-beginning 299,438
Fund balances-ending 120,067$
11 CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Hazardous Material
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 165,000$ 165,000$ 172,940$ 7,940$ Total revenues 165,000 165,000 172,940 7,940
EXPENDITURES
Current:
Public safety 260,260 260,260 250,999 9,261 Total expenditures 260,260 260,260 250,999 9,261 Net change in fund balances (95,260)$ (95,260)$ (78,059) 17,201$ Fund balances (deficit)-beginning (80,092)
Fund balances (deficit)-ending (158,151)$
1
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual CATV Public Access
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 116,000$ 116,000$ 96,641$ (19,359)$ Total revenues 116,000 116,000 96,641 (19,359) Net change in fund balances 116,000$ 116,000$ 96,641 (19,359)$ Fund balances-beginning 1,299,258
Fund balances-ending 1,395,899$
12
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Air Quality
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 145,000$ 145,000$ 148,927$ 3,927$ Use of money and property 5,000 5,000 12,816 7,816 Total revenues 150,000 150,000 161,743 11,743
EXPENDITURES
Current:
Public works 187,464 187,464 183,413 4,051 Capital outlay 149,000 149,000 - 149,000 Total expenditures 336,464 336,464 183,413 153,051 Excess (deficiency) of revenues
over (under) expenditures (186,464) (186,464) (21,670) 164,794
OTHER FINANCING SOURCES (USES)
Transfers in - - 21,891 21,891
Total other financing sources (uses) - - 21,891 21,891 Net change in fund balances (186,464)$ (186,464)$ 221 186,685$ Fund balances-beginning 299,278
Fund balances-ending 299,499$
12
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Grants
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 1,730,000$ 2,463,798$ 1,803,345$ (660,453)$ Charges for services 237,000 237,000 237,718 718 Use of money and property 1,550 1,550 1,212 (338)
Miscellaneous 51,000 51,000 54,910 3,910 Total revenues 2,019,550 2,753,348 2,097,185 (656,163)
EXPENDITURES
Current:
General government 170 170 25,598 (25,428)
Public safety 116,577 501,577 527,171 (25,594) Community development 2,091,056 2,091,056 2,248,456 (157,400) Community services 146,428 560,865 259,019 301,846 Capital outlay 271,146 738,304 466,474 271,830 Total expenditures 2,625,377 3,891,972 3,526,718 365,254 Excess (deficiency) of revenues
over (under) expenditures (605,827) (1,138,624) (1,429,533) (290,909)
OTHER FINANCING SOURCES (USES)
Transfers in 1,117,884 1,117,884 2,646,160 1,528,276 Total other financing sources (uses) 1,117,884 1,117,884 2,646,160 1,528,276 Net change in fund balances 512,057$ (20,740)$ 1,216,627 1,237,367$ Fund balances (deficit)-beginning (1,073,629)
Fund balances-ending 142,998$
12
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual CDBG
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 1,269,000$ 1,269,000$ 791,505$ (477,495)$ Total revenues 1,269,000 1,269,000 791,505 (477,495)
EXPENDITURES
Current:
Community development 785,900 785,900 313,443 472,457 Debt service:
Principal retirement 353,000 353,000 353,000 - Interest and fiscal charges 85,548 85,548 110,931 (25,383) Total expenditures 1,224,448 1,224,448 777,374 447,074 Net change in fund balances 44,552$ 44,552$ 14,131 (30,421)$ Fund balances-beginning 1,345,383
Fund balances-ending 1,359,514$
12
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Asset Forfeiture
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 15,000$ 15,000$ -$ (15,000)$ Use of money and property 6,000 6,000 15,326 9,326 Total revenues 21,000 21,000 15,326 (5,674) Net change in fund balances 21,000$ 21,000$ 15,326 (5,674)$ Fund balances-beginning 7,210
Fund balances-ending 22,536$
12
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Transit Prop C
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 2,570,000$ 2,570,000$ 2,421,523$ (148,477)$ Use of money and property 85,000 85,000 212,441 127,441 Other income 100,000 100,000 - (100,000) Total revenues 2,755,000 2,755,000 2,633,964 (121,036)
EXPENDITURES
Current:
Public works 36,287 36,287 54,082 (17,795) Capital outlay 3,717,714 3,717,714 1,912,037 1,805,677 Total expenditures 3,754,001 3,754,001 1,966,119 1,787,882 Excess (deficiency) of revenues
over (under) expenditures (999,001) (999,001) 667,845 1,666,846
OTHER FINANCING SOURCES (USES)
Transfers out (1,000,000) (1,000,000) (1,000,000) - Total other financing sources (uses) (1,000,000) (1,000,000) (1,000,000) - Net change in fund balances (1,999,001)$ (1,999,001)$ (332,155) 1,666,846$ Fund balances-beginning 3,750,863
Fund balances-ending 3,418,708$
12
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Transit Prop A
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 3,094,000$ 3,094,000$ 2,919,346$ (174,654)$ Use of money and property 110,000 110,000 358,306 248,306 Miscellaneous 9,000 9,000 111,142 102,142
Total revenues 3,213,000 3,213,000 3,388,794 175,794
EXPENDITURES
Current:
Parks and recreation 1,458,018 1,458,018 1,144,492 313,526 Public works 420,161 420,161 441,964 (21,803) Capital outlay 1,461,122 1,461,122 1,098,496 362,626 Debt service:
Principal retirement 324,482 324,482 324,482 - Interest expense and fiscal charges 50,886 50,886 46,112 4,774 Total expenditures 3,714,669 3,714,669 3,055,546 659,123 Excess (deficiency) of revenues
over (under) expenditures (501,669) (501,669) 333,248 834,917
OTHER FINANCING SOURCES (USES)
Transfers in 1,000,000 1,000,000 1,000,000 - Total other financing sources (uses) 1,000,000 1,000,000 1,000,000 - Net change in fund balances 498,331$ 498,331$ 1,333,248 834,917$ Fund balances-beginning 6,396,611
Fund balances-ending 7,729,859$
12
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Transit Measure R
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 57,000$ 57,000$ 66,058$ 9,058$ Developer participation 2,056,000 2,056,000 1,815,806 (240,194) Total revenues 2,113,000 2,113,000 1,881,864 (231,136)
EXPENDITURES
Current:
Public works 313,625 640,625 129,826 510,799 Capital outlay 2,364,725 2,364,725 1,900,757 463,968 Total expenditures 2,678,350 3,005,350 2,030,583 974,767 Excess (deficiency) of revenues
over (under) expenditures (565,350) (892,350) (148,719) 743,631
OTHER FINANCING SOURCES (USES)
Transfers out (838,000) (838,000) (838,000) - Total other financing sources (uses) (838,000) (838,000) (838,000) - Net change in fund balances (1,403,350)$ (1,730,350)$ (986,719) 743,631$ Fund balances-beginning 2,040,659
Fund balances-ending 1,053,940$
12
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Gas Tax
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 3,124,000$ 3,124,000$ 3,153,118$ 29,118$ Total revenues 3,124,000 3,124,000 3,153,118 29,118
EXPENDITURES
Current:
Public works 22,662 22,662 22,645 17 Capital outlay 118,348 118,348 121,875 (3,527) Total expenditures 141,010 141,010 144,520 (3,510) Excess (deficiency) of revenues
over (under) expenditures 2,982,990 2,982,990 3,008,598 25,608
OTHER FINANCING SOURCES (USES)
Transfers out (2,799,000) (2,799,000) (3,016,867) (217,867) Total other financing sources (uses) (2,799,000) (2,799,000) (3,016,867) (217,867) Net change in fund balances 183,990$ 183,990$ (8,269) (192,259)$ Fund balances-beginning 9,066
Fund balances-ending 797$
12 CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual SB1 Transportation
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 2,840,000$ 2,840,000$ 3,108,720$ 268,720$ Use of money and property 140,000 140,000 318,312 178,312 Total revenues 2,980,000 2,980,000 3,427,032 447,032
EXPENDITURES
Current:
Public works - - 10,900 (10,900)
Capital outlay 6,483,000 6,523,000 7,940,396 (1,417,396) Total expenditures 6,483,000 6,523,000 7,951,296 (1,428,296) Net change in fund balances (3,503,000)$ (3,543,000)$ (4,524,264) (981,264)$ Fund balances-beginning 6,641,352
Fund balances-ending 2,117,088$
1
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Transit Measure M
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 2,262,000$ 2,262,000$ 2,057,248$ (204,752)$ Use of money and property 65,000 65,000 107,841 42,841 Total revenues 2,327,000 2,327,000 2,165,089 (161,911)
EXPENDITURES
Current:
Public works 718 718 85,832 (85,114)
Capital outlay 2,049,283 2,089,283 2,156,761 (67,478) Total expenditures 2,050,001 2,090,001 2,242,593 (152,592) Excess (deficiency) of revenues
over (under) expenditures 276,999 236,999 (77,504) (314,503)
OTHER FINANCING SOURCES (USES)
Transfers out (1,023,000) (1,023,000) (1,023,000) - Total other financing sources (uses) (1,023,000) (1,023,000) (1,023,000) - Net change in fund balances (746,001)$ (786,001)$ (1,100,504) (314,503)$ Fund balances-beginning 2,714,115
Fund balances-ending 1,613,611$
13
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Art in Public Places
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Miscellaneous 95,000$ 95,000$ 99,287$ 4,287$ Total revenues 95,000 95,000 99,287 4,287
EXPENDITURES
Current:
Public works 550 550 20,235 (19,685)
Capital outlay - 11,300 14,703 (3,403)
Total expenditures 550 11,850 34,938 (23,088) Net change in fund balances 94,450$ 83,150$ 64,349 (18,801)$ Fund balances-beginning 590,291
Fund balances-ending 654,640$
13
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure W - Sewer and Storm Drain
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 1,430,000$ 1,430,000$ 1,440,724$ 10,724$ Charges for services 10,825,803 10,825,803 274,515 (10,551,288) Use of money and property 185,000 185,000 505,577 320,577 Miscellaneous - -8,0008,000
Total revenues 12,440,803 12,440,803 2,228,816 (10,211,987)
EXPENDITURES
Current:
Public works 304,888 304,888 206,430 98,458 Capital outlay 20,643,508 20,643,508 555,944 20,087,564 Total expenditures 20,948,396 20,948,396 762,374 20,186,022 Net change in fund balances (8,507,593)$ (8,507,593)$ 1,466,442 9,974,035$ Fund balances-beginning 6,129,133
Fund balances-ending 7,595,575$
13
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Asset Forfeiture - State
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 35,000$ 35,000$ 237$(34,763)$ Use of money and property 1,750 1,750 3,784 2,034
Total revenues 36,750 36,750 4,021 (32,729) Net change in fund balances 36,750$ 36,750$ 4,021 (32,729)$ Fund balances-beginning 93,258
Fund balances-ending 97,279$
13
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure S Operating
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 13,352,000$ 13,352,000$ 12,879,119$ (472,881)$ Use of money and property - - 132,277 132,277 Total revenues 13,352,000 13,352,000 13,011,396 (340,604)
EXPENDITURES
Current:
Public safety 5,388,431 5,760,940 5,713,138 47,802 Public works 107,000 107,000 60,594 46,406 Total expenditures 5,495,431 5,867,940 5,773,732 94,208 Excess (deficiency) of revenues
over (under) expenditures 7,856,569 7,484,060 7,237,664 (246,396)
OTHER FINANCING SOURCES (USES)
Transfers out (7,391,649) (7,391,649) (8,514,393) (1,122,744) Total other financing sources (uses) (7,391,649) (7,391,649) (8,514,393) (1,122,744) Net change in fund balances 464,920$ 92,411$ (1,276,729) (1,369,140)$ Fund balances-beginning 5,667,710
Fund balances-ending 4,390,981$
13
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure D Operating
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes -$ -$ 1,529,194$ 1,529,194$
Miscellaneous - - 3,648 3,648$
Total revenues - - 1,532,842 1,532,842
EXPENDITURES
Current:
General government - 1,154,576 158,005 996,571
Public safety - - 11,260 (11,260)
Public works - -- -
Capital outlay - -- -
Total expenditures - 1,154,576 169,265 985,311
Excess (deficiency) of revenues
over (under) expenditures - (1,154,576) 1,363,577 2,518,153
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Total other financing sources (uses)- - - -
Net change in fund balances -$ (1,154,576)$ 1,363,577 2,518,153$ Fund balances-beginning -
Fund balances-ending 1,363,577$
136
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual City Capital Projects
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental -$-$ 335,979$ 335,979$
Charges for services 3,000 3,000 - (3,000)
Use of money and property 7,000 7,000 12,971 5,971 Fines and forfeitures 2,275,000 2,275,000 3,462,692 1,187,692 Miscellaneous - - 34,267 34,267
Total revenues 2,285,000 2,285,000 3,845,909 1,560,909
EXPENDITURES
Current:
Public works 3,699 3,699 21,570 (17,871)
Capital outlay 12,966,827 13,246,827 6,242,771 7,004,056 Total expenditures 12,970,526 13,250,526 6,264,341 6,986,185 Excess (deficiency) of revenues
over (under) expenditures (10,685,526) (10,965,526) (2,418,432) 8,547,094
OTHER FINANCING SOURCES (USES)
Transfers in 235,166 365,166 1,102,666 737,500 Transfers out (404,000) (404,000) (1,141,500) (737,500) Total other financing sources (uses) (168,834) (38,834) (38,834) - Net change in fund balances (10,854,360)$ (11,004,360)$ (2,457,266) 8,547,094$ Fund balances-beginning 13,446,244
Fund balances-ending 10,988,978$
13
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure S Capital
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes -$ -$ 2,686$ 2,686$ Miscellaneous - - 16,444 16,444$ Total revenues - - 19,130 19,130
EXPENDITURES
Current:
General government 2,500 2,500 2,250 250 Public safety - - 80,371 (80,371) Public works 37,000 35,800 36,441 (641) Capital outlay 667,552 3,434,689 2,313,264 1,121,425 Total expenditures 707,052 3,472,989 2,432,326 1,040,663 Excess (deficiency) of revenues
over (under) expenditures (707,052) (3,472,989) (2,413,196) 1,059,793
OTHER FINANCING SOURCES (USES)
Transfers in 1,670,352 1,670,352 2,413,196 742,844 Total other financing sources (uses)1,670,352 1,670,352 2,413,196 742,844 Net change in fund balances 963,300$ (1,802,637)$ - 1,802,637$ Fund balances-beginning 2,190,660
Fund balances-ending 2,190,660$
138
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Debt Service
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 175,000$ 175,000$ 279,066$ 104,066$ Total revenues 175,000 175,000 279,066 104,066
EXPENDITURES
Debt service:
Principal retirement - - 4,606,343 (4,606,343)
Interest expense and fiscal charges - - 3,029,170 (3,029,170) Total expenditures - - 7,635,513 (7,635,513)
Excess (deficiency) of revenues
over (under) expenditures 175,000 175,000 (7,356,447) (7,531,447)
OTHER FINANCING SOURCES (USES)
Transfers in 7,941,000 7,941,000 7,641,064 (299,936) Total other financing sources (uses)7,941,000 7,941,000 7,641,064 (299,936) Net change in fund balances 8,116,000$ 8,116,000$ 284,617 (7,831,383)$ Fund balances-beginning 312,816
Fund balances-ending 597,433$
139
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure S Debt Service
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 4,000$ 4,000$ 3,201$ (799)$ Miscellaneous - - 16,342 16,342
Total revenues 4,000 4,000 19,543 15,543
EXPENDITURES
Current:
Public safety 153,400 153,400 595,111 (441,711) Capital outlay 368,322 368,322 387,166 (18,844) Debt service:
Principal retirement 2,355,455 2,355,455 2,355,455 - Interest and fiscal charges 1,507,281 1,507,281 1,498,485 8,796 Total expenditures 4,384,458 4,384,458 4,836,217 (451,759) Excess (deficiency) of revenues
over (under) expenditures (4,380,458) (4,380,458) (4,816,674) (436,216)
OTHER FINANCING SOURCES (USES)
Transfers in 3,962,000 3,962,000 4,341,900 379,900 Leases financing - - 474,774 474,774
Total other financing sources (uses) 3,962,000 3,962,000 4,816,674 854,674 Net change in fund balances (418,458)$ (418,458)$ - 418,458$ Fund balances-beginning -
Fund balances-ending -$
1
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure R Bond 2021B
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property -$-$ 146$146$
Total revenues - -146146
EXPENDITURES
Current:
General government 2,500 2,500 2,250 250
Public works - - 148,175 (148,175)
Capital outlay 3,733,135 3,763,135 3,472,919 290,216 Debt service:
Principal retirement 500,000 500,000 500,000 - Interest expense and fiscal charges 337,632 337,632 337,632 - Total expenditures 4,573,267 4,603,267 4,460,976 142,291 Excess (deficiency) of revenues
over (under) expenditures (4,573,267) (4,603,267) (4,460,830) 142,437
OTHER FINANCING SOURCES (USES)
Transfers in 838,000 838,000 838,000 - Total other financing sources (uses) 838,000 838,000 838,000 - Net change in fund balances (3,735,267)$ (3,765,267)$ (3,622,830) 142,437$ Fund balances-beginning 3,640,555
Fund balances-ending 17,725$
1
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure M Bond 2021A
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property -$-$ 116$116$
Total revenues - -116116
EXPENDITURES
Current:
General government 2,500 2,500 2,250 250
Public works - - 688,825 (688,825)
Capital outlay 2,195,229 2,195,229 854,045 1,341,184 Debt service:
Principal retirmenet 505,000 505,000 505,000 - Interest expense and fiscal charges 517,358 517,358 517,358 - Total expenditures 3,220,087 3,220,087 2,567,478 652,609 Excess (deficiency) of revenues
over (under) expenditures (3,220,087) (3,220,087) (2,567,362) 652,725
OTHER FINANCING SOURCES (USES)
Transfers in 1,023,000 1,023,000 1,023,000 - Total other financing sources (uses) 1,023,000 1,023,000 1,023,000 - Net change in fund balances (2,197,087)$ (2,197,087)$ (1,544,362) 652,725$ Fund balances-beginning 2,134,280
Fund balances-ending 589,918$
1
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one City department to other City departments on a cost reimbursement basis. The Internal Service Funds used by the City are as follows:
Employee Benefits Fund is used to charge various departments for leave time, medical benefits, retirement benefits and other employee fringe benefits on a cost reimbursement basis.
Equipment Fund is used to charge various departments of the City for the use of fleet, office and communications equipment on a cost reimbursement basis.
1
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
Total Internal
Service
Funds
ASSETS
Current assets:
Cash and investments 22,936,982$ 427,277$ 23,364,259$ Receivables:
Accounts -6,789 6,789
Prepaid expenses 11,556 14,341 25,897
Inventories -84,129 84,129
Total current assets 22,948,538 532,536 23,481,074 Noncurrent:
Capital assets, net of accumulated depreciation/amortization - 3,998,645 3,998,645 Total noncurrent assets - 3,998,645 3,998,645
Total assets 22,948,538 4,531,181 27,479,719
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items - 42,073 42,073
Total deferred outflows of resources - 42,073 42,073
LIABILITIES
Current liabilities:
Accounts payable 16,942 96,649 113,591 Accrued liabilities 130 66,459 66,589
Leases payable - 369,429 369,429
Accrued compensated absences 3,154,423 29,186 3,183,609 Accrued claims payable 3,658,000 -3,658,000
Bonds, notes, and loans payable - 22,385 22,385
Total current liabilities 6,829,495 584,108 7,413,603 Noncurrent liabilities:
Accrued compensated absences 4,931,104 45,174 4,976,278 Accrued claims payable 3,717,418 -3,717,418
Leases payable - 639,224 639,224
Bonds, notes, and loans payable - 690,933 690,933
Net pension liability - 215,666 215,666
Total noncurrent liabilities 8,648,522 1,590,997 10,239,519 Total liabilities 15,478,017 2,175,105 17,653,122
NET POSITION
Net investment in capital assets - 1,835,294 1,835,294
Unrestricted 7,470,521 562,855 8,033,376
Total net position 7,470,521$ 2,398,149$ 9,868,670$ Employee
Benefits Equipment
14
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2025
Total Internal
Service
Funds
OPERATING REVENUES
Interdepartmental charges 2,341,381$ 3,773,744$ 6,115,125$ Miscellaneous 283,353 715 284,068
Total operating revenues 2,624,734 3,774,459 6,399,193
OPERATING EXPENSES
Maintenance and operations - 2,795,367 2,795,367
General and administrative - 427,764 427,764
Employee benefits 4,772,821 -4,772,821
Depreciation/amortization - 615,015 615,015
Total operating expenses 4,772,821 3,838,146 8,610,967 Operating income (loss)(2,148,087) (63,687) (2,211,774)
NONOPERATING REVENUES (EXPENSES)
Interest expense - (22,565) (22,565)
Gain (loss) on disposal of capital assets - 57,535 57,535 Total nonoperating revenues (expenses)- 34,970 34,970
Change in net position (2,148,087) (28,717) (2,176,804) Net position-beginning 5,177,322 2,377,086 7,554,408 Restatements - change in accounting principle 4,441,286 49,780 4,491,066 Net position-beginning, restated 9,618,608 2,426,866 12,045,474 Net position-ending 7,470,521$ 2,398,149$ 9,868,670$ Employee
Benefits Equipment
14
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 2,341,381$ 3,767,884$ 6,109,265$ Payments to suppliers and service providers (4,499,960) (2,978,666) (7,478,626) Other receipts (payments)- (474,682) (474,682)
Net cash provided by (used for)
operating activities (2,158,579) 314,536 (1,844,043)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Principal paid on noncapital debt -(22,496) (22,496)
Interest paid on noncapital debt -(22,566) (22,566)
Operating grants and contributions -6,664 6,664
Net cash provided by (used for)
noncapital financing activities -(38,398) (38,398)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from capital debt - 343,782 343,782
Acquisition and construction of capital assets - (387,443) (387,443) Principal paid on capital debt - (578,439) (578,439)
Proceeds from sales of assets -57,535 57,535
Net cash provided by (used for)
capital and related financing activities - (564,565) (564,565) Net increase (decrease) in
cash and cash equivalents (2,158,579) (288,427) (2,447,006) Cash and cash equivalents-beginning 25,095,561 715,704 25,811,265 Cash and cash equivalents-ending 22,936,982$ 427,277$ 23,364,259$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss)(2,148,087)$ (63,687)$ (2,211,774)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense - 615,015 615,015
(Increase) decrease in accounts receivable - (6,575) (6,575) (Increase) decrease in inventories - 15,303 15,303
(Increase) decrease in prepaid items (11,556) (14,341) (25,897) Increase (decrease) in accounts payable 1,062 (184,261) (183,199) Increase (decrease) in accrued liabilities 2 5,669 5,671 Increase (decrease) in compensated absences - 3,915 3,915 Increase (decrease) in pension and related items - (56,502) (56,502) Total adjustments (10,492) 378,223 367,731$ Net cash provided by (used for)
operating activities (2,158,579)$ 314,536$ (1,844,043)$ Employee
Benefits Equipment
14
CUSTODIAL FUNDS
Cemetery District Fund is used to account for the financial operations of an independent governmental entity which the City provides accounting services to.
1913 Act Bond Fund is used to account for the revenues associated with the City’s 1913 Act projects.
Elm Vista Fund is used to account for funds provided by private property owners to construct certain public right-of-way improvements in their neighborhood.
Columbia Memorial Space Learning Center Foundation Fund is used to account for the construction and implementation of educational programs for the Columbia Memorial Space Learning Center.
Southeast Area Animal Control Authority (SEAACA) Fund is used to account for the financial operations of an independent governmental entity which the City provides accounting services to.
Southeast Water Coalition Fund is a joint powers authority established to protect the Central Groundwater Basin. 14
ASSETS
Cash and investments -$ 120,098$ 1,765$ 3,303$ Restricted cash and investments 873,196 - --
Receivables:
Taxes 5,081 ---
Accrued interest 4,846 ---
Due from other governments 3,920 --72
Capital assets, not being depreciated 29,967 - -- Capital assets, net of accumulated depreciation 265,821 - -- Total assets 1,182,831 120,098 5,021 3,375
LIABILITIES
Accounts payable 4,341 --27,509
Accrued liabilities ----
Unearned revenues ----
Deposits Received ----
Due to other governments 32,773 - 5,000 -
Total liabilities 37,114 - 5,000 27,509
NET POSITION
Restricted for organizations and other governments 1,145,717 120,098 21 (24,134) Total net position 1,145,717$ 120,098$ 21$ (24,134)$ 1913 Act Bond Elm Vista
Columbia
Memorial
Space
Learning
Center
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2025
Cemetery
District
14
ASSETS
Cash and investments
Restricted cash and investments
Receivables:
Taxes
Accrued interest
Due from other governments
Capital assets, not being depreciated
Capital assets, net of accumulated depreciation
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Unearned revenues
Deposits Received
Due to other governments
Total liabilities
NET POSITION
Restricted for organizations and other governments
Total net position
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2025
Total
Custodial
Funds
9,474,716$ 2,826$ 9,602,708$
--873,196
--5,081
--4,846
186,961 -190,953
80,523 -110,490
2,377,244 -2,643,065
12,269,400 2,826 13,583,551
489,523 -521,373
676,541 -676,541
298 -298
57,769 -57,769
835 -38,608
1,224,966 - 1,294,589
11,044,434 2,826 12,288,962
11,044,434$ 2,826$ 12,288,962$
SEAACA
Southeast
Water
Coalition
14 Fiduciary Net Position
ADDITIONS
Investment earnings:
Interest 30,052$ -$-$3,389$
Taxes 119,249 - --
Intergovernmental ---27,300
Miscellaneous 28,017 - -154,181
Total additions 177,318 - - 184,870
DEDUCTIONS
Benefits ----
Administrative expenses 56,524 - -245,929
Contractual services ---150,240
Capital outlay ----
Depreciation expense 9,887 ---
Total deductions 66,411 - - 396,169
Net increase (decrease) in fiduciary net position 110,907 - - (211,299) Net position-beginning 1,034,810 120,098 21 187,165 Net position-ending 1,145,717$ 120,098$ 21$ (24,134)$
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Changes in
Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2025
Cemetery
District 1913 Act Bond Elm Vista
Columbia
Memorial
Space
Learning
Center
1
Fiduciary Net Position
ADDITIONS
Investment earnings:
Interest
Taxes
Intergovernmental
Miscellaneous
Total additions
DEDUCTIONS
Benefits
Administrative expenses
Contractual services
Capital outlay
Depreciation expense
Total deductions
Net increase (decrease) in fiduciary net position
Net position-beginning
Net position-ending
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Changes in
Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2025
Total
Custodial
Funds
500,827$ 134$ 534,402$
--119,249
7,779,344 -7,806,644
84,014 -266,212
8,364,185 134 8,726,507
11,773 - 11,773
6,443,555 -6,746,008
129,299 -279,539
185,822 -185,822
135,844 -145,731
6,906,293 - 7,368,873
1,457,892 134 1,357,634
9,586,542 2,692 10,931,328
11,044,434$ 2,826$ 12,288,962$
Southeast
Water
Coalition SEAACA
1
7+,63$*(,17(17,21$//</()7%/$1.
1
Annual Comprehensive
Financial
Report
Fiscal Year Ended June 30, 2025
Statistical
Section
1
7+,63$*(,17(17,21$//</()7%/$1.
15
DESCRIPTION OF STATISTICAL SECTION CONTENTS
For the Year Ended June 30, 2025
This part of the City of Downey’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government’s overall financial health.
Contents: Pages
Financial Trends - These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time .............................................................................................................................. 150-158 Revenue Capacity - These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax .................................................. 161-167 Debt Capacity - These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future ........................................................................... 168-174 Demographic and Economic Information - These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place ............................................................................................. 175-177 Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs ............................................. 178-183 15
2015-16 2016-17 2017-18 2018-19 2019-20
Governmental Activities:
Net investment in capital assets 211,020 212,244 151,973 191,436 246,763 Restricted 30,009 30,653 82,066 78,437 44,502 Unreserved (103,853) (109,605) (173,874) (184,334) (208,799) Total governmental activities 137,176 133,292 60,165 85,539 82,466 Business-type Activities:
Net investment in capital assets 35,577 35,265 64,401 73,287 77,286 Restricted 469 469 36,006 35,064 34,007 Unrestricted 6,032 11,124 (23,706) (25,220) (26,669) Total business-type activities 42,078 46,858 76,701 83,131 84,624 Primary Government:
Net investment in capital assets 246,597 247,509 216,374 264,723 324,049 Restricted 30,478 31,122 118,072 113,501 78,509 Unassigned (97,821) (98,481) (197,580) (209,554) (235,468) Total primary government 179,254 180,150 136,866 168,670 167,090 Note: Transit was transferred to governmental activities during fiscal year 2014-15. Transit revenues are grouped under operating grants and contributions.
CITY OF DOWNEY
NET POSTION BY COMPONENT
(amounts expressed in thousands)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Source: Finance Department, City of Downey
15
2020-21 2021-22 2022-23 2023-24 2024-25
Governmental Activities:
Net investment in capital assets 216,976 231,094 218,104 224,269 252,095 Restricted 36,143 63,539 48,340 47,149 39,321 Unreserved (170,512) (170,064) (129,690) (123,998) (135,634) Total governmental activities 82,607 124,569 136,754 147,420 155,782 Business-type Activities:
Net investment in capital assets 74,989 76,539 83,507 86,226 88,120 Restricted 34,130 33,854 6,522 7,139 7,139 Unrestricted (16,020) (14,293) 7,674 5,144 9,957 Total business-type activities 93,099 96,100 97,703 98,509 105,216 Primary Government:
Net investment in capital assets 291,965 307,633 301,610 310,495 340,215 Restricted 70,273 97,393 54,862 54,012 46,460 Unassigned (186,532) (184,357) (122,015) (118,854) (125,677) Total primary government 175,706 220,669 234,457 245,653 260,998 Note: Transit was transferred to governmental activities during fiscal year 2014-15. Transit revenues are grouped under operating grants and contributions.
CITY OF DOWNEY
NET POSITION BY COMPONENT
(amounts expressed in thousands)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Source: Finance Department, City of Downey
15
2015-16 2016-17 2017-18 2018-19 2019-20
Expenses
Governmental Activities:
General government 14,884 14,735 10,530 13,340 15,763 Public safety 58,397 65,666 70,552 74,434 82,960 Public works 15,479 15,486 15,075 13,289 14,320 Community services 7,975 9,404 10,152 13,171 11,050 Community development 7,257 5,870 7,626 6,856 6,187 Transit - -- --
Unallocated infrastructure depreciation - -- --
Interest on long term debt 1,662 1,704 2,588 3,298 2,773 Total expenses for governmental activities 105,654 112,865 116,523 124,388 133,053 Business-type Activities:
Water 10,580 11,376 15,881 14,157 14,789 Golf 2,667 2,794 2,899 2,853 2,979 Sewer and Storm Drain 4,102 3,657 3,812 Total expenses for business-type activities 13,247 14,170 22,882 20,667 21,580 Total expenses for primary government 118,901 127,035 139,405 145,055 154,633 Program Revenues
Governmental Activities:
Charges for services:
General government 6,436 7,700 7,674 8,477 8,226 Public safety 5,136 4,650 5,244 5,102 5,128 Public works 5,545 4,332 1,157 3,566 3,305 Community services 3,233 3,561 2,166 2,137 1,119 Community development 1,550 1,408 1,232 1,025 1,004 Operating grants and contributions 15,108 13,548 9,853 11,678 13,151 Capital grants and contributions 2,281 1,805 2,195 8,281 2,301 Total revenues for governmental activities 39,289 37,004 29,521 40,266 34,234 Business-type Activities:
Charges for services:
Water 16,120 16,874 18,026 17,711 18,132 Golf 2,798 2,800 2,947 2,853 2,687 Sewer and Storm Drain - - 1,507 1,471 1,477 Operating grants and contributions - - 388 - - Total revenues for business-type activities 18,918 19,674 22,868 22,035 22,296 Total revenues for primary government 58,207 56,678 52,389 62,301 56,530 Net (Expenses)/Revenues:
Governmental activities (66,365) (75,861) (87,001) (84,122) (98,819) Business-type activities 5,671 5,504 (13) 1,368 716 Total net position for primary government (60,694) (70,357) (87,014) (82,754) (98,103) Note: Transit was transferred to governmental activities during fiscal year 2014-15. Transit revenues are grouped under operating grants and contributions.
CITY OF DOWNEY
(amounts expressed in thousands)
Last Ten Fiscal Years
(modified accrual basis of accounting)
CHANGES IN NET POSITION - EXPENSES AND PROGRAM REVENUES Source: Finance Department, City of Downey
15
2020-21 2021-22 2022-23 2023-24 2024-25
Expenses
Governmental Activities:
General government 19,271 13,930 7,227 12,496 10,030 Public safety 83,139 64,532 82,248 101,140 102,491 Public works 15,176 15,338 19,554 21,368 21,688 Community services 9,281 9,978 13,466 14,685 14,674 Community development 6,636 6,156 6,700 7,912 9,202 Transit - - - - -
Unallocated infrastructure depreciation - - - - -
Interest on long term debt 3,209 6,650 5,780 5,595 5,334 Total expenses for governmental activities 136,712 116,584 134,975 163,196 163,419 Business-type Activities:
Water 10,825 15,778 15,837 16,009 18,541 Golf 3,119 3,081 2,968 3,862 3,860 Sewer and Storm Drain 1,933 2,268 2,672 3,012 2,967 Total expenses for business-type activities 15,877 21,127 21,477 22,883 25,368 Total expenses for primary government 152,589 137,711 156,452 186,079 188,787 Program Revenues
Governmental Activities:
Charges for services:
General government 8,206 9,190 9,647 12,406 12,067 Public safety 5,295 5,759 6,361 7,310 8,013 Public works 3,467 4,461 3,517 4,118 4,249 Community services 723 2,177 2,817 2,879 2,740 Community development 1,149 1,735 1,513 2,029 1,741 Operating grants and contributions 22,366 19,997 6,350 22,975 8,777 Capital grants and contributions 1,288 1,007 1,248 1,701 1,155 Total revenues for governmental activities 42,494 44,326 31,453 53,418 38,742 Business-type Activities:
Charges for services:
Water 18,875 18,197 17,621 16,761 24,750 Golf 4,248 4,508 4,273 4,887 4,992 Sewer and Storm Drain 1,497 1,521 1,431 1,585 1,600 Operating grants and contributions - - - - -
Total revenues for business-type activities 24,620 24,226 23,325 23,233 31,342 Total revenues for primary government 67,114 68,552 54,778 76,651 70,084 Net (Expenses)/Revenues:
Governmental activities (94,218) (72,258) (103,522) (109,778) (124,677) Business-type activities 8,743 3,099 1,848 350 5,974 Total net position for primary government (85,475) (69,159) (101,674) (109,428) (118,703) Note: Transit was transferred to governmental activities during fiscal year 2014-15. Transit revenues are grouped under operating grants and contributions.
CITY OF DOWNEY
CHANGES IN NET POSITION - EXPENSES AND PROGRAM REVENUES (amounts expressed in thousands)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Source: Finance Department, City of Downey
15 2015-16 2016-17 2017-18 2018-19 2019-20
General Revenues and Other Changes in
Net Position:
Governmental Activities:
Property taxes, levied for general purposes 24,709$ 25,378$ 26,976$ 28,817$ 30,184$ Transient occupancy taxes 1,629 1,701 1,705 1,537 1,348 Sales and use taxes 20,039 24,606 26,993 31,673 30,055 Property tax in lieu of sales and use taxes 3,349 2,106 9,154 10,384 9,937 Franchise taxes 2,625 2,433 2,670 2,778 2,854 Utility taxes 7,229 7,065 6,735 6,411 6,303 Other taxes 1,903 1,898 2,128 2,516 2,404 Earning on investments 3,738 1,089 1,682 4,173 3,481 Gain/(loss) on sales of capital assets 45 (112) - 1,345 4,712 Miscellaneous 4,759 4,806 5,639 4,396 4,263 Contribution from Successor Agency - -- --
Transfer-in 1,359 1,051 148 153 205 Extraordinary gain - -- 14,263 -
Total governmental activities 71,384 72,021 83,830 108,446 95,746 Business-type Activities:
Sales taxes - -- --
Earning on investments 519 300 500 1,076 779 Gain/(loss) on sales of capital assets 39 (1) -14 -
Miscellaneous 970 27 176 249 202 Transfer-in (1,359) (1,050) (147) (153) (205) Total business-type activities 169 (724) 529 1,186 776 Total primary government 71,553 71,297 84,359 109,632 96,522 Changes in Net Position
Governmental activities 71,384 72,021 83,830 24,324 1,528 Business-type activities 169 (724) 529 1,186 9,519 Total net position for primary government 71,553 71,297 84,359 25,510 11,047 Note: Transit was transferred to governmental activities during fiscal year 2014-15. Transit revenues are grouped under operating grants and contributions.
CITY OF DOWNEY
CHANGES IN NET POSITION - GENERAL REVENUES
(amounts expressed in thousands)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Source: Finance Department, City of Downey
1
2020-21 2021-22 2022-23 2023-24 2024-25
General Revenues and Other Changes in
Net Position:
Governmental Activities:
Property taxes, levied for general purposes 32,209$ 32,699$ 34,555$ 35,961$ 37,830$ Transient occupancy taxes 1,298 1,769 2,236 2,456 2,503 Sales and use taxes 32,777 37,791 37,050 37,834 38,304 Property tax in lieu of sales and use taxes 11,192 12,421 12,865 12,923 12,879 Franchise taxes 2,981 3,284 3,240 3,589 3,791 Utility taxes 6,617 10,394 10,328 9,851 10,385 Other taxes 2,012 2,101 3,245 3,473 5,376 Earning on investments 1,416 48 4,701 7,420 8,294 Gain/(loss) on sales of capital assets 91 9,029 129 56 58 Miscellaneous 4,708 4,334 7,107 5,981 6,253 Contribution from Successor Agency - - - --
Transfer-in/out 898 351 893 900 897
Extraordinary gain - - - --
Total governmental activities 96,199 114,221 116,349 120,444 126,570 Business-type Activities:
Sales taxes - - - --
Earning on investments 138 (149) 647 1,332 1,464 Gain/(loss) on sales of capital assets 16 6 - 16 49 Miscellaneous 477 397 2 22 8
Transfer-in/out (898) (351) (893) (900)(897)
Total business-type activities (267) (97) (244) 456 624 Total primary government 95,932 114,124 116,105 120,900 127,194 Changes in Net Position
Governmental activities 1,981 41,963 12,828 10,665 1,894 Business-type activities 8,476 3,002 1,603 806 6,597 Total net position for primary government 10,457 44,965 14,431 11,471 8,491 Note: Transit was transferred to governmental activities during fiscal year 2014-15. Transit revenues are grouped under operating grants and contributions.
CITY OF DOWNEY
CHANGES IN NET POSITION - GENERAL REVENUES
(amounts expressed in thousands)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Source: Finance Department, City of Downey
1
2015-16 2016-17 2017-18 2018-19 2019-20
General Fund:
Nonspendable 7,609 7,413 6,497 8,308 8,240 Restricted - - 4,260 - -
Assigned 20,003 20,003 - --
Unassigned 10,662 7,894 10,070 25,553 25,896 Total general fund 38,274 35,310 20,827 33,861 34,136 All Other Governmental Funds:
Nonspendable 11 11 3,601 - -
Restricted 13,935 14,480 12,837 65,680 26,797 Assigned 2,073 3,295 5,620 3,490 4,392 Unassigned (2,189) (3,686) (7,766) (1,774) (4,527) Total all other governmental funds 13,830 14,100 14,292 67,396 26,662 Notes:
1. GASB Statement #54 was implemented in 2011; prior years have no comparable data.
2. Transit was transferred to governmental activities during fiscal year 2014-15. Transit revenues are grouped under operating grants and contribution (modified accrual basis of accounting)
CITY OF DOWNEY
FUND BALANCES OF GOVERNMENTAL FUNDS
(amounts expressed in thousands)
Last Ten Fiscal Years
Source: Finance Department, City of Downey
1
2020-21 2021-22 2022-23 2023-24 2024-25
General Fund:
Nonspendable 8,093$ 6,882$ 9,042$ 8,807$ 8,460$ Restricted - - - - -
Assigned - - 38,200 50,318 49,334
Unassigned 26,355 46,580 5 - 113
Total general fund 34,448$ 53,462$ 47,247$ 59,125$ 57,907$ All Other Governmental Funds:
Nonspendable -$ -$ 2,200$ 11,057$ 2,217$ Restricted 18,513 45,418 37,182 43,489 39,321 Assigned 4,412 4,552 15,035 69,538 12,960 Unassigned (5,824) (5,751) - (3,585) (3,749) Total all other governmental funds 17,101$ 44,219$ 54,418$ 120,499$ 50,749$ Notes:
1. GASB Statement #54 was implemented in 2011; prior years have no comparable data.
2. Transit was transferred to governmental activities during fiscal year 2014-15. Transit revenues are grouped under operating grants and contribution
CITY OF DOWNEY
FUND BALANCES OF GOVERNMENTAL FUNDS
(amounts expressed in thousands)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Source: Finance Department, City of Downey
1
2015-16 2016-17 2017-18 2018-19 2019-20
Revenues:
Taxes 61,521$ 65,130$ 76,104$ 84,299$ 82,993$ License and permits 2,173 1,999 1,837 1,486 1,536 Fines and forfeitures 1,856 2,851 3,051 3,456 3,586 Investment and rental 2,046 1,497 1,918 4,769 3,726 Intergovernmental revenue 17,304 15,333 12,167 13,325 13,615 Charges for services 14,094 14,213 13,262 13,535 12,104 Other revenue 6,119 6,183 6,954 12,579 5,819 Total revenues 105,113 107,206 115,293 133,449 123,379 Expenditures:
Current:
General government 12,091 11,387 10,786 11,649 13,661 Public safety 51,103 56,712 58,694 62,543 65,129 Public works 14,431 14,707 13,835 11,781 13,565 Community services 6,413 8,540 9,263 11,950 10,295 Community development 6,097 5,430 7,236 6,929 5,969 ERAF payment - -- - -
Capital outlay 16,794 13,272 8,309 36,176 58,254 Debt service:
Principal 460 611 681 2,844 2,822
Interest and fiscal charges 1,630 1,652 2,696 3,513 2,958 Total expenditures 109,019 112,311 111,500 147,385 172,653 Excess of revenues
over (under) expenditures (3,906) (5,105) 3,793 (13,936) (49,274) Other Financing Sources (Uses):
Transfers in 9,210 5,820 5,552 11,126 11,455 Transfers out (7,823) (4,770) (6,216) (5,148) (11,250) Proceeds from long-term debt - -51,949 3,000 - Capital Leases - - - 3,433 192
Sale of property - -- --
Issuance of debt 668 705 744 - -
Sale of capital assets 2,163 700 - 2,514 5,404 Total other financing sources (uses) 4,218 2,455 52,028 14,925 5,801 Special Item: Pension contribution due to bond issuance Extraordinary Gain - -- --
Net change in fund balances 312 (2,650) 55,821 989 (43,473) Fund balances - July 1 51,793 52,060 45,436 101,378 102,367 Fund balances - June 30 52,105$ 49,410$ 101,257$ 102,367$ 58,894$ Debt service as a percentage of
noncapital expenditures 2.27% 2.30% 3.26% 5.72% 5.05%
Note:
Transit was transferred to governmental activities during fiscal year 2014-15. Transit revenues are grouped under operating grants and contributions.
CITY OF DOWNEY
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
(amounts expressed in thousands)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Source: Finance Department, City of Downey
16
2020-21 2021-22 2022-23 2023-24 2024-25
Revenues:
Taxes 89,097$ 100,213$ 103,519$ 106,087$ 111,069$ License and permits 1,681 1,781 2,069 2,681 2,996 Fines and forfeitures 3,469 3,725 3,634 4,038 4,901 Use of money and property 1,416 48 4,701 7,380 8,294 Intergovernmental revenue 23,742 20,477 10,064 24,395 10,231 Charges for services 12,093 15,924 16,748 19,643 19,423 Other revenue 6,305 6,226 8,929 8,361 7,895 Total revenues 137,803 148,394 149,664 172,585 164,809 Expenditures:
Current:
General government 10,822 13,424 7,465 8,910 8,955 Public safety 70,062 65,372 72,465 79,682 83,251 Public works 13,812 14,453 15,251 17,116 18,544 Community services 8,178 9,261 11,051 12,065 12,205 Community development 8,586 6,534 6,832 7,588 8,357 ERAF payment - - - - -
Capital outlay 29,345 26,733 21,155 12,935 34,747 Debt service:- - - - -
Principal 3,346 5,230 8,288 8,806 8,647 Interest and fiscal charges 3,447 6,669 5,959 5,783 5,540 Total expenditures 147,598 147,676 148,466 152,885 180,246 Excess of revenues
over (under) expenditures (9,795) 718 1,198 19,700 (15,437) Other Financing Sources (Uses):
Transfers in 18,734 12,682 25,650 33,311 26,958 Transfers out (17,336) (12,457) (24,756) (32,411) (26,061) Proceeds from long-term debt - - - - -
Leases 356 854 417 129 2,124
Sale of property
Issuance of debt 108,446 30,465 139 - -
Sale of capital assets - 13,870 - - 250
Total other financing sources (uses)110,200 45,414 1,450 1,029 3,271 Special Item: Pension contribution due to bond issuance (107,814) - - - - Extraordinary Gain - - - - -
Net change in fund balances (7,409) 46,132 2,648 20,729 (12,166) Fund balances - July 1 58,958 51,549 97,038 99,770 120,824 Fund balances - June 30 51,549 97,681 99,686 120,499 108,658 Debt service as a percentage of
noncapital expenditures 5.74%9.82%11.17%10.43%10.43%
Note:
CITY OF DOWNEY
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
(amounts expressed in thousands)
Last Ten Fiscal Years
(modified accrual basis of accounting)
e: Finance Department, City of Downey
16
Net Total Percent
Fiscal Public Less Net Total Less Net Total Unsecured Increase Year Secured Utilities Exemptions Secured Unsecured Exemptions Unsecured and Secured (Decrease) 2015-16 10,318,316 560 715,185 9,603,691 546,557 151,877 394,680 9,998,371 4.96% 2016-17 10,914,243 560 724,987 10,189,816 507,620 112,353 395,267 10,585,083 5.87% 2017-18 11,461,902 1,011 716,615 10,746,298 379,305 45 379,260 11,125,558 5.11% 2018-19 12,239,422 1,011 786,926 11,453,507 428,769 117,407 311,362 11,764,869 5.75% 2019-20 12,981,632 1,011 870,877 12,111,766 441,308 29,325 411,983 12,523,749 6.45% 2020-21 13,593,718 1,011 880,312 12,714,417 453,911 32,007 421,904 13,136,321 4.89% 2021-22 13,984,192 1,620 870,497 13,115,315 396,894 1,643 395,251 13,510,566 2.85% 2022-23 14,694,624 1,619 783,581 13,912,662 467,399 62,342 405,057 14,317,719 8.99% 2023-24 15,463,883 1,619 919,109 14,546,393 501,185 64,024 437,161 14,983,554 4.65% 2024-25 16,314,355 1,620 980,747 15,335,228 469,251 5,125 464,126 15,799,354 5.44% Note: Homeowner Exemptions are not included in Total Exemptions.
CITY OF DOWNEY
ASSESSED VALUATION
(amounts expressed in thousands)
Last Ten Fiscal Years
Source: HdL Coren Cone, Los Angeles County Assessor 2019/20 Combined Tax Rolls 16
7+,63$*(,17(17,21$//</()7%/$1.
16
2015-16 2016-17 2017-18 2018-19 2019-20
Residential 7,803,812$ 8,284,859$ 8,709,975$ 9,232,913$ 9,738,633$ Commercial 1,191,137 1,277,960 1,400,109 1,447,981 1,617,909 Industrial 312,043 321,456 334,314 396,068 394,148
Government owned 620 632 1,025 1,178
Institutional 66,176 70,995 76,903 96,087 72,370
Miscellaneous 1,012 1,027 3,549 3,619 3,692
Recreational 26,516 31,953 32,592 98,867 99,407
Unknown 509 517 527 0 0
Vacant Land 67,132 61,299 46,663 39,308 42,486
SBE Nonunitary 560 560 1,011 1,011 1,011
Possessory Int. 0 138,570 140,024 136,628 140,933
Unsecured 394,680 395,266 379,260 311,363 411,983
Exempt (83,552.00) (82,326) (82,336) (82,245) (82,245) TOTALS 9,863,577 10,584,462 11,124,927 11,764,870 12,523,750 Total Direct Rate 0.1390% 0.1393% 0.1396% 0.1396% 0.1401% Note: Exempt values are not included in Total.
CITY OF DOWNEY
ASSESSED VALUE OF TAXABLE PROPERTY
(amounts expressed in thousands)
Last Ten Fiscal Years
Source: HdL Coren Cone, L.A. County Assessor 2010/11 - 2023/24 Combined Tax Rolls 16
2020-21 2021-22 2022-23 2023-24 2024-25
Residential 10,218,058$ 10,585,620$ 11,219,901$ 11,787,735$ 12,257,250$ Commercial 1,690,314 1,681,952 1,797,756 1,831,806 1,898,910 Industrial 426,171 450,432 503,719 513,434 608,800
Government owned 1,202 1,078 1,238 1,263 1,144
Institutional 86,243 90,881 85,852 95,953 249,562
Miscellaneous 3,765 3,804 13 13 13
Recreational 101,478 96,659 103,031 99,778 101,774
Unknown 0 0 0 0 0
Vacant Land 41,149 53,494 54,125 59,238 62,767
SBE Nonunitary 1,011 1,620 1,620 1,620 1,620
Possessory Int. 145,026 149,775 145,408 152,554 153,390 Unsecured 421,904 395,251 405,057 437,162 464,126
Exempt (81,846) (81,558) (81,558) (82,035) (81,364)
TOTALS 13,136,321 13,510,566 14,317,720 14,983,555 15,799,354 Total Direct Rate 0.1411% 0.1419% 0.1414% 0.1417% 0.1417% Note: Exempt values are not included in Total.
CITY OF DOWNEY
ASSESSED VALUE OF TAXABLE PROPERTY
(amounts expressed in thousands)
Last Ten Fiscal Years
Source: HdL Coren Cone, L.A. County Assessor 2010/11 - 2023/24 Combined Tax Rolls 16 2015-16 2016-17 2017-18 2018-19 2019-20
Basic Levy 1
City of Downey Tax District 1 0.13970 0.13970 0.13970 0.13970 0.13970 Cerritos Community College District 0.02620 0.02620 0.02620 0.02620 0.02620 Childrens Institutional Tuition Fund 0.00291 0.00291 0.00291 0.00291 0.00291 County Sanitation District No. 2 Operating 0.01394 0.01394 0.01394 0.01394 0.01394 County School Service Fund-Downey 0.00743 0.00743 0.00743 0.00743 0.00743 County School Service 0.00146 0.00146 0.00146 0.00146 0.00146 Development Ctr For Handicapped Minors 0.00052 0.00052 0.00052 0.00052 0.00052 Downey Cemetery District 0.00089 0.00089 0.00089 0.00089 0.00089 Downey Unified School District 0.21540 0.21540 0.21540 0.21540 0.21540 Educational Augmentation Fund Impound 0.16310 0.16310 0.16310 0.16310 0.16310 Educational Revenue Augmentation 0.07340 0.07340 0.07340 0.07340 0.07340 Great L.A. County Vector Control Dist 0.00039 0.00039 0.00039 0.00039 0.00039 L. A. County Accum Cap Outlay 0.00012 0.00012 0.00012 0.00012 0.00012 L. A. County Fire 0.00768 0.00768 0.00768 0.00768 0.00768 L. A. County Flood Ctrl Drain Imp Dist Maint 0.00183 0.00183 0.00183 0.00183 0.00183 L. A. County Flood Ctrl Maintenance 0.01035 0.01035 0.01035 0.01035 0.01035 L. A. County General 0.33450 0.33450 0.33450 0.33450 0.33450 Water Replenishment District of Southern Calif 0.00018 0.00018 0.00018 0.00018 0.00018 Total Basic Levy Rate 1.00000 1.00000 1.00000 1.00000 1.00000 Cerritos Community College Dist 0.04829 0.04698 0.04370 0.04446 0.44490 Compton Community College Dist 0.00926 0.00920 0.00954 0.02335 0.02323 County Detention Facilities 1987 Debt 0.00000 0.00000 0.00000 0.00000 0.00000 Downey Unified School District 0.11466 0.11473 0.10538 0.10113 0.09708 LA Community College District 0.03575 0.03596 0.04599 0.04621 0.02717 LA County Flood Control 0.00000 0.00000 0.00000 0.00000 0.00000 Little Lake City School District 0.06522 0.07527 0.07876 0.07611 0.06532 Los Angeles Unified School District 0.12971 0.13110 0.12219 0.12323 0.12552 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 Montebello Unified School District 0.08715 0.14705 0.13514 0.13921 0.09306 Norwalk-La Mirada Unified 0.14114 0.13400 0.13818 0.13425 0.14019 Rio Hondo Community College Dist 0.02712 0.02808 0.02748 0.02554 0.02571 Whittier Union High School Dist 0.05063 0.06035 0.05781 0.05822 0.05502 Total Voter Approved Rate 0.71243 0.78622 0.76767 0.77521 1.10070 TOTAL DIRECT & OVERLAPPING2 TAX RATE 1.71243 1.78622 1.76767 1.77521 2.10070 Rate producing Revenue for City and Redevelopment Agency (RDA) City General Fund Direct Rate 3 0.01397 0.01397 0.01397 0.01397 0.01397 RDA Incremental Rate 4 - - - - - Total Direct Rate5 0.13929 0.13960 0.13959 0.14013 0.14112 Notes:
CITY OF DOWNEY
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(Rate per $100 of Taxable Value)
Last Ten Fiscal Years
5. Because basic and debt and rates vary by tax rate area individual rates cannot be summed. The Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information.
1. In 1978, California voters passed Proposition 13 which set the property tax rate at a 1% fixed amount. This 1% is shared by all taxing agencies for which the subject property resides within. In addition to the 1% fxied amount, property owners are charged tax as a percentage of assessed property values for the payment of any voter approved bonds.
2. Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
3. City's share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures.
4. Redevelopment Rate is based on the largest RDA tax rate area (RA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rate are applied only to the incremental property values. The approved of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.
Source: HdL Coren Cone, L. A. County Assessor 2010/11 - 2023/24 Tax Rate Table 1
2020-21 2021-22 2022-23 2023-24 2024-2025
Basic Levy 1
City of Downey Tax District 1 0.13970 0.13970 0.13970 0.13970 0.13970 Cerritos Community College District 0.02620 0.02620 0.02620 0.02620 0.02620 Childrens Institutional Tuition Fund 0.00291 0.00291 0.00291 0.00291 0.00291 County Sanitation District No. 2 Operating 0.01394 0.01394 0.01394 0.01394 0.01394 County School Service Fund-Downey 0.00743 0.00743 0.00743 0.00743 0.00743 County School Service 0.00146 0.00146 0.00146 0.00146 0.00146 Development Ctr For Handicapped Minors 0.00052 0.00052 0.00052 0.00052 0.00052 Downey Cemetery District 0.00089 0.00089 0.00089 0.00089 0.00089 Downey Unified School District 0.21540 0.21540 0.21540 0.21540 0.21540 Educational Augmentation Fund Impound 0.16310 0.16310 0.16310 0.16310 0.16310 Educational Revenue Augmentation 0.07340 0.07340 0.07340 0.07340 0.07340 Great L.A. County Vector Control Dist 0.00039 0.00039 0.00039 0.00039 0.00039 L. A. County Accum Cap Outlay 0.00012 0.00012 0.00012 0.00012 0.00012 L. A. County Fire 0.00768 0.00768 0.00768 0.00768 0.00768 L. A. County Flood Ctrl Drain Imp Dist Maint 0.00183 0.00183 0.00183 0.00183 0.00183 L. A. County Flood Ctrl Maintenance 0.01035 0.01035 0.01035 0.01035 0.01035 L. A. County General 0.33450 0.33450 0.33450 0.33450 0.33450 Water Replenishment District of Southern Calif 0.00018 0.00018 0.00018 0.00018 0.00018 Total Basic Levy Rate 1.00000 1.00000 1.00000 1.00000 1.00000 Cerritos Community College Dist 0.04348 0.04251 0.04361 0.04231 0.06489 Compton Community College Dist 0.00899 0.00906 0.01575 0.02022 0.01658 County Detention Facilities 1987 Debt 0.00000 0.00000 0.00000 0.00000 0.00000 Downey Unified School District 0.08771 0.09504 0.09106 0.13183 0.12561 LA Community College District 0.04016 0.04376 0.02488 0.06023 0.05136 LA County Flood Control 0.00000 0.00000 0.00000 0.00000 0.00000 Little Lake City School District 0.06606 0.06200 0.06811 0.08016 0.08190 Los Angeles Unified School District 0.13993 0.11323 0.12107 0.12422 0.12802 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00700 Montebello Unified School District 0.09706 0.09031 0.12770 0.11275 0.09160 Norwalk-La Mirada Unified 0.12220 0.14250 0.13301 0.13157 0.12655 Rio Hondo Community College Dist 0.01361 0.01526 0.01535 0.02182 0.02334 Whittier Union High School Dist 0.05433 0.05395 0.05342 0.05063 0.04532 Total Voter Approved Rate 0.67703 0.67112 0.69746 0.77924 0.76217 TOTAL DIRECT & OVERLAPPING2 TAX RATE 1.67703 1.67112 1.69746 1.77924 1.76217 Rate producing Revenue for City and Redevelopment Agency (RDA) City General Fund Direct Rate 3 0.13973 0.13973 0.13973 0.13973 0.13973 RDA Incremental Rate 4
Total Direct Rate5 0.14185 0.14142 0.14169 0.14183 0.14192 Notes:
CITY OF DOWNEY
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(Rate per $100 of Taxable Value)
Last Ten Fiscal Years
5. Because basic and debt and rates vary by tax rate area individual rates cannot be summed. The Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information.
1. In 1978, California voters passed Proposition 13 which set the property tax rate at a 1% fixed amount. This 1% is shared by all taxing agencies for which the subject property resides within. In addition to the 1% fxied amount, property owners are charged tax as a percentage of assessed property values for the payment of any voter approved bonds.
2. Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
3. City's share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures.
4. Redevelopment Rate is based on the largest RDA tax rate area (RA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rate are applied only to the incremental property values. The approved of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.
Source: HdL Coren Cone, L. A. County Assessor 2010/11 - 2019/20 Tax Rate Table 17
Taxable % of Total City Taxable % of Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Assessed Value Value Assessed Value
Kaiser Foundation Health Plan, Inc.228,449 1.45% 128,520 1.29% US VI Downey LLC 188,107 1.19% - 0.00%
Reyes Coca-Cola Bottling LLC 131,377 0.83% 121,918 1.22% Gary L. Ball Trust 124,629 0.79% 107,327 1.07% Downey Landing LLC 110,209 0.70% 94,102 0.94% PRC Multi-Family LLC 97,635 0.62% 33,072 0.33%
Woodruff Avenue California LLC 80,851 0.51% - 0.00%
Macerich Stonewood LLC 67,992 0.43% 57,612 0.58%
Lone Oak-Downey, LLC 57,583 0.36% - 0.00%
Fremont Rancho Limited 53,572 0.34% 45,466 0.45%
Top Ten Total 1,140,404 7.22% 588,017 5.88% Note: The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
CITY OF DOWNEY
PRINCIPAL PROPERTY TAX PAYERS
Current Year and Nine Years Prior
2024-25 2015-16
(amounts expressed in thousands)
Source: HdL Coren Cone
1
Fiscal Year Taxes Levied Current Tax Percent of Collections Tax Percent of Ended for the Collected Levy in Subsequent Collected Total Tax June 30 Fiscal Year Amount Collected Fiscal Year Amount Collections 2015-16 13,587 13,164 96.89% 26 13,190 97.08% 2016-17 14,416 14,241 98.79% 26 14,267 98.97% 2017-18 15,165 15,140 99.84% 3 15,143 99.85% 2018-19 16,050 15,301 95.33% 4 15,305 95.36% 2019-20 17,099 16,252 95.05% 17 16,269 95.15% 2020-21 18,009 17,266 95.87% - 17,266 95.87% 2021-22 18,465 17,798 96.39% 14 17,812 96.46% 2022-23 19,580 18,765 95.84% 10 18,775 95.89% 2023-24 20,502 19,547 95.34% 10 19,557 95.39% 2024-25 21,634 20,253 93.62% 14 20,267 93.68%
CITY OF DOWNEY
PROPERTY TAX LEVIES AND COLLECTIONS
(amounts expressed in thousands)
Last Ten Fiscal Years
Total Collections to Date
Source: L.A. County Auditor Controller's Office 2023-24 1
Certificates Total Total Total Percentage Debt
Fiscal of Lease Governmental Loans Bonds Business-type Primary of Personal Per Year Bonds Participation Payable Activities Payable * Payable Activities Government Income Capita 2015-16 18,092 - 16,165 34,257 5,480 - 5,480 39,737 2719.7%625 2016-17 17,569 - 16,630 34,199 5,070 - 5,070 39,269 1485.9%345 2017-18 67,580 - 17,470 85,050 4,645 281 4,926 89,976 3258.4%788 2018-19 64,691 - 9,321 74,012 4,200 213 4,413 78,425 2697.5% 687 2019-20 62,368 - 9,168 71,536 3,740 144 3,884 75,420 2440.7% 664 2020-21 168,675 - 8,593 177,268 3,265 4,581 7,846 185,114 5725.5% 1,661 2021-22 194,809 - 7,811 202,620 2,770 4,509 7,279 209,899 6165.0% 1,864 2022-23 187,165 - 7,139 194,304 2,255 4,366 6,621 200,925 5525.1% 1,806 2023-24 179,330 - 8,151 187,481 1,720 4,689 6,409 193,890 4848.2% 1,739 2024-25 171,300 - 7,058 178,358 1,170 4,064 5,234 183,592 4423.9% 1,641 * Loans Payable was issued to prepay the 2002 Certificates of Participation Business-type ActivitiesGovernmental Activities
CITY OF DOWNEY
RATIOS OF OUTSTANDING DEBT BY TYPE
(amounts expressed in thousands)
Last Ten Fiscal Years
Source: Finance Department, City of Downey
17
Ratio of Net
Assessed Gross Net Bonded Debt Net Bonded
Calendar Value Bonded Bonded to Assessed Debt Per
Year Population (in thousands) Debt Debt Value Capita
2015-16 114,181 9,998 34,257 34,257 342.6%30.0% 2016-17 113,832 10,585 34,199 34,199 323.1%30.0% 2017-18 114,146 11,126 85,050 85,050 764.5%74.5% 2018-19 114,212 11,765 74,012 74,012 629.1%64.8% 2019-20 113,529 12,524 71,536 71,536 571.2%63.0% 2020-21 111,425 13,136 177,268 177,268 1349.5%159.1% 2021-22 112,584 13,511 202,620 202,620 1499.7%180.0% 2022-23 111,261 14,318 194,304 194,304 1357.1%174.6% 2023-24 111,493 14,983 187,481 187,481 1251.3%168.2% 2024-25 111,871 15,799 178,358 178,358 1128.9%159.4% * Gross Bonded Debt Restated for prior years due to exclusion of Business Type Activities Last Ten Fiscal Years
CITY OF DOWNEY
RATIO OF GENERAL BONDED DEBT TO ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
(amounts expressed in thousands)
Source: Finance Department, City of Downey
17
2024-25 Assessed Valuation: $15,799,353,904
City's Share
Total Debt Percent of Debt
Overlapping Tax and Assessment Debt:6/30/2025 Applicable (1) 6/30/2025 Metropolitan Water District 17,155,000$ 0.388%66,561$ Cerritos Community College District 510,110,300 23.853 121,676,610 Compton Community College District 140,875,266 0.636 895,967 Los Angeles Community District 4,919,505,000 0.002 98,390 Rio Honda Community College District 356,554,080 0.364 1,297,857 Whittier Union High School District 142,657,284 0.564 804,587 Downey Unified School District 352,660,294 91.027 321,016,086 Montebello Unified School District 228,369,179 0.121 276,327 Little Lake City School District 64,034,901 3.380 2,164,380 448,296,765$
Los Angeles County General Fund Obligation 3,036,637,390$ 0.752%22,835,513$ Los Angeles County Superintendent of Schools Certificates of Participation 2,331,775 0.752 17,535 Montebello Unified School District Certificates of Participation 3,185,000 0.121 3,854 City of Downey General Fund Obligations (2)33,040,000 100 33,040,000 City of Downey Pension Obligation Bonds (3)109,221,043 100 109,221,043 City of Downey Sales Tax Revenue Bonds 22,505,000 100 22,505,000 City of Downey Unamortized Bond Premiums/Discounts 6,534,122 100 6,534,122 City of Downey Direct Borrowings and Loans 6,361,712 100 6,361,712 200,518,779$
Overlapping Tax Increment Debt (Successor Agency): 2,265,000$ 100%2,265,000$ 177,661,877$
473,418,677$
651,080,544$
(1) The percentage of overlapping debt applicable to the city is estimated using taxable essessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes 2014 Golf Course loan which is considered a business-type activity (3) Excludes business-type activity portion
(4) Excludes tax and revnue anticipation notes, enterprise revenue, and mortgage revenue Ratios to 2024-25 Assessed Valuation
Total Gross Direct Debt ($177,661,877)………………………. 1.12%
Combined Total Debt………………………………………………... 4.12%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,023,909,389):
Total Overlapping Tax and Assessment Debt ……………………… 0.22%
CITY OF DOWNEY
SCHEDULE OF DIRECT AND OVERLAPPING DEBT
Total Overlapping Tax and Assessment Debt
Direct and Overlapping General Fund Debt:
Total Direct and Overlapping General Fund Debt
TOTAL DIRECT DEBT
TOTAL OVERLAPPING DEBT
COMBINED TOTAL DEBT (4)
Total Overlapping Tax and Assessment Debt……………………… 2.84% Source: HdL Coren Cone, Los Angeles County Assessor and Auditor Combined 2023/24 Lien Date Tax Rolls 17
7+,63$*(,17(17,21$//</()7%/$1.
17
2015-16 2016-17 2017-18 2018-19 2019-20
Assessed Valuation 9,998,371$ 10,585,083$ 11,125,558$ 11,764,870$ 12,523,750$ Charter Debt Limited 1,499,756 1,587,762 1,668,834 1,764,731 1,878,563 (15% of Assessed
Valuation)
Amount of debt
applicable to debt limit - -- --
Legal Debt Margin 1,499,756 1,587,762 1,668,834 1,764,731 1,878,563 Total Debt applicable
to the limit as a
percentage of debt
limit 0% 0% 0% 0% 0%
Note: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.
CITY OF DOWNEY
SCHEDULE OF LEGAL DEBT MARGIN
(amounts expressed in thousands)
Last Ten Fiscal Years
Source: L. A. County Assessor 2010/11 - 2019/20 Combined Tax Rolls 17
2020-21 2021-22 2022-23 2023-24 2024-25
Assessed Valuation 13,136,321$ 13,510,567$ 14,317,719$ 14,983,555$ 15,799,354$ Charter Debt Limited 1,970,448 2,026,585 2,147,658 2,247,533 2,369,903 (15% of Assessed
Valuation)
Amount of debt
applicable to debt limit - - - - -
Legal Debt Margin 1,970,448 2,026,585 2,147,658 2,247,533 2,369,903 Total Debt applicable
to the limit as a
percentage of debt
limit 0%0%0%0%0%
Note: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.
CITY OF DOWNEY
SCHEDULE OF LEGAL DEBT MARGIN
(amounts expressed in thousands)
Last Ten Fiscal Years
Source: L. A. County Assessor 2010/11 - 2023/24 Combined Tax Rolls 17 Net
Direct Available
Fiscal Gross Operating for Debt
Year Revenue Expenses Service Principal Interest Total Coverage 2015-16 3,249 2,453 796 395 210 605 1.32 2016-17 3,128 2,593 535 410 195 605 0.88 2017-18 3,223 2,733 490 425 180 605 0.81 2018-19 3,213 2,703 510 445 163 609 0.84 2019-20 2,776 2,832 (56) 460 147 607 (0.09) 2020-21 4,313 2,991 1,322 475 130 605 2.19 2021-22 4,694 2,978 1,716 495 112 607 2.83 2022-23 4,555 2,883 1,672 515 93 608 2.75 2023-24 5,423 3,749 1,674 535 74 609 2.75 2024-25 5,661 3,815 1,846 550 53 603 3.06 Note: Direct operating expenses does not include inter-fund transfers and debt services.
Debt Service Requirement
CITY OF DOWNEY
GOLF COURSE REVENUE COVERAGE
(amounts expressed in thousands)
Last Ten Fiscal Years
Source: Finance Department, City of Downey
1
Personal Per Capita
Calendar Income Personal Unemployment
Year Population (in thousands) Income Rate
2015-16 114,181 2,625,354 22,992 6.0%
2016-17 113,832 2,642,801 23,216 4.6%
2017-18 114,146 2,761,333 24,191 3.5%
2018-19 114,212 2,907,308 25,455 4.5%
2019-20 113,529 3,090,130 27,218 4.1%
2020-21 111,425 3,233,140 29,016 12.6%
2021-22 112,584 3,404,669 30,241 8.9%
2022-23 111,261 3,636,609 32,685 4.7%
2023-24 111,493 3,999,236 35,869 4.5%
2024-25 111,871 4,150,000 37,096 5.3%
CITY OF DOWNEY
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Calendar Years
Source: HdL Coren Cone
1
7+,63$*(,17(17,21$//</()7%/$1.
18
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
Kaiser Permanente 6,772 17.85% 4,500 8.20% Rancho Los Amigos Medical Center 2,569 6.77% 1,410 2.60% Stonewood Shopping Center 2,000 5.27% 1,765 3.20% County of Los Angeles, Internal Service Department 1,502 3.96% 712 1.30% Downey Unified School District 1,307 3.45% 2,450 4.50% Office of Education, County of Los Angeles 1,278 3.37% 1,685 3.10% PIH Health (formally Downey Regional Medical Center) 1,250 3.30% 1,100 2.00% Coca-Cola Bottling Company 1,047 2.76% 800 1.50% City of Downey 772 2.04% 833 1.50% Lakewood Health Center 408 1.08% 314 0.60%
CITY OF DOWNEY
PRINCIPAL EMPLOYERS
Current Year and Nine Years Prior
2024-25 2015-16
Source: City of Downey, Finance Department and Community Development Department and Downey Chamber of Commerce 1
Function 2015-16 2016-17 2017-18 2018-19 2019-20
General Government 36 38 39 41 40
Police 166 166 181 189 195
Fire 89 94 115 105 125
Community Services 477 373 441 402 369
Public Works 81 79 79 81 83
Community Development 21 21 23 23 22
Total 870 771 878 841 834
Notes:
CITY OF DOWNEY
FULL-TIME AND PART-TIME CITY EMPLOYEES BY FUNCTION
Last Ten Fiscal Years
1. Fire department was authorized to hire 12 paramedic operators upon receipt of Federal grant.
2. Increase to Fire Dept during FY14 & FY15 is due to having Ambulance Operators hired as employees rather than using an Ambulance Contract Service
3. The part time employees hours were reduced to keep them below the requirements for offering insurance benefits. Staffing had to increase to cover the reduction in current staff hours.
Source: Finance Department, City of Downey
18
Function 2020-21 2021-22 2022-23 2023-24 2024-25
General Government 40 38 35 41 42
Police 188 185 184 180 184
Fire 120 113 110 108 114
Community Services 249 275 304 295 314
Public Works 83 72 74 81 81
Community Development 20 20 16 23 19
Total 700 703 723 728 754 Notes:
1.Fire department was authorized to hire 12 paramedic operators upon receipt of Federal grant.
CITY OF DOWNEY
FULL-TIME AND PART-TIME CITY EMPLOYEES BY FUNCTION
Last Ten Fiscal Years
3. The part time employees hours were reduced to keep them below the requirements for offering insurance benefits. Staffing had to increase to cover the reduction in current staff hours.
2. Increase to Fire Dept during FY14 & FY15 is due to having Ambulance Operators hired in as employees rather than using an Ambulance Contract Service
Source: Finance Department, City of Downey
18
2015-16 2016-17 2017-18 2018-19 2019-20
Police:
Number of arrests 3,947 3,498 3,471 4,516 3,016
Number of collision reports issued 1,280 1,112 1,023 1,055 1,075 Number of traffic citations issued 14,696 14,111 14,085 16,017 13,004 Number of reported crimes & incidents 9,729 8,576 12,839 9,736 7,555 Fire:
Number of emergency incidents 8,081 7,915 8,114 8,054 9,027 Number of fire & other incidents 1,635 1,689 1,424 1,335 1,260 Number of special service & other incidents 374 449 416 377 464 Number of traffic accidents 1,121 1,073 907 1,004 632 Parks and Recreation:
Number of general park attendance 2,004,311 1,620,000 1,954,297 1,950,000 2,250,000 Number of participants in theatre 51,762 45,500 107,130 110,000 115,000 Number of library attendance 371,625 326,941 320,311 181,821 0 Public works:
Engineering (CIP related improvement)
Street striping (lineal feet) 55,392 93,640 40,205 19,805 887,509 Asphalt replacement (tons) 30,728 39,730 23,150 11,957 28,566 Trees planted (each) 105 118 106 16 214
Trees removed (each) 332 89 46 0 19
Maintenance
Pavement markings (square feet) 24,985 48,070 41,640 12,386 7,154 Street stripping (linear feet) 2,084 803,231 792 0 896 Asphalt repair (tons) 422 450 417 274 355
Graffiti removed (square feet) 752,655 581,479 568,449 378,070 408,418 Trees trimmed (each) 8,034 8,889 8,220 8,873 8,646 Trees planted (each) 95 473 129 544 2,034
Trees removed (each) 185 145 124 239 212
Vehicles serviced - preventative maintenance
(each)1,494 550 1,031 1,113 921
Vehicles serviced - repairs (each) 547 646 532 537 379 Water:
Number of customers 23,341 23,314 23,336 23,482 23,555 Annual supply (acre feet) 13,911 14,352 14,796 14,298 13,802 Maximum daily capacity 45,000 45,000 40,000 40,000 40,000 (thousands of gallons)
Sanitary Sewer:
Sewer main cleaned (no. of miles) 70 78 77 91 85 Vector coating applied to sewer manholes 25 1,650 1,650 1,650 1,650 Golf course:
Golf rounds played 58,576 65,658 63,574 63,500 62,000
CITY OF DOWNEY
OPERATING INDICATORS
Last Ten Fiscal Years
Source: Finance Department, City of Downey
18
2020-21 2021-22 2022-23 2023-24 2024-25
Police:
Number of arrests 2,464 2,535 2,492 2,333 2,388
Number of collision reports issued 831 957 1,023 1,058 997 Number of traffic citations issued 13,175 12,048 9,896 7,769 11,097 Number of reported crimes & incidents 7,625 8,834 8,666 8,417 7,718 Fire:
Number of emergency incidents 8,314 8,916 9,042 8,981 9,025 Number of fire & other incidents 1,161 1,748 1,621 1,941 2,066 Number of special service & other incidents 395 345 337 485 658 Number of traffic accidents 475 581 575 728 730
Parks and Recreation:
Number of general park attendance 1,764,865 2,592,959 2,792,920 2,046,517 1,652,356 Number of participants in theatre 0 97,092 95,897 113,825 95,923 Number of library attendance 11,629 150,030 211,721 221,430 228,349 Public works:
Engineering (CIP related improvement)
Street striping (lineal feet) 4,360 69,101 70,062 4,153 46,000 Asphalt replacement (tons) 18,923 73,658 61,517 27,785 38,568 Trees planted (each) 138 35 129 145 125
Trees removed (each) 26 156 137 233 100
Maintenance
Pavement markings (square feet) 2,639 2,933 2,933 2,923 3,120 Street stripping (linear feet) 0 0 1,001 0 0
Asphalt repair (tons) 311 256 244 232 216
Graffiti removed (square feet) 444,339 390,236 388,260 415,236 370,322 Trees trimmed (each) 7,183 6,990 7,820 7,156 8,800
Trees planted (each) 117 81 67 145 125
Trees removed (each) 122 205 63 233 100
Vehicles serviced - preventative maintenance
(each)827 836 823 824 904
Vehicles serviced - repairs (each) 267 272 276 281 311
Water:
Number of customers 23,010 23,044 23,489 23,478 23,492
Annual supply (acre feet) 14,289 14,456 13,228 13,222 13,748 Maximum daily capacity 40,000 40,000 40,000 40,000 40,000 (thousands of gallons)
Sanitary Sewer:
Sewer main cleaned (no. of miles) 86 100 120 67 86
Vector coating applied to sewer manholes 1,750 1,800 1,750 1,800 1,750 Golf course:
Golf rounds played 85,027 86,645 79,515 83,426 84,150
CITY OF DOWNEY
OPERATING INDICATORS
Last Ten Fiscal Years
Source: Finance Department, City of Downey
18
Function 2015-16 2016-17 2017-18 2018-19 2019-20
Public Safety
Number of Police stations 1 1 1 1 1
Number of Fire stations 4 4 4 4 4
Highways and streets
Miles of streets 210 210 210 210 210
Traffic signals 116 116 116 116 116
No. of street lights 5,430 5430 5430 5430 5436
Water
Number of active water wells 20 20 20 20 20
Number of reservoirs 1 1 1 1 1
Miles of lines & mains 276 276 276 276 276
Sewer
Miles of sanitary sewer 193 193 193 193 193
Sewer lift station 2 2 1 1 1
Culture and Recreation
Number of parks 12 12 12 12 12
Number of community centers 1 1 1 1 1
Number of golf course 1-18-hole 1-18-hole 1-18-hole 1-18-hole 1-18-hole
CITY OF DOWNEY
CAPITAL ASSET STATISTICS BY FUNCTION
Last Ten Fiscal Years
Source: Finance Department, City of Downey
18
Function 2020-21 2021-22 2022-23 2023-24 2024-25
Highways and streets
Miles of streets 210 215 215 215 214
Traffic signals 118 118 118 118 115
No. of street lights 5440 5440 5440 5440 6643
Water
Number of active water wells 20 20 20 20 20
Number of reservoirs 1 1 1 1 1
Miles of lines & mains 276 276 276 264 264
Sewer
Miles of sanitary sewer 193 193 193 193 193
Sewer lift station 1 1 1 1 1
Culture and Recreation
Number of parks 12 13 13 13 13
Number of community centers 1 1 1 1 1
Number of golf course 1-18-hole 1-18-hole 1-18-hole 1-18-hole 1-18-hole
CITY OF DOWNEY
CAPITAL ASSET STATISTICS BY FUNCTION
Last Ten Fiscal Years
Source: Finance Department, City of Downey
18 11111 Brookshire Avenue Downey, CA 90241 • www.downeyca.org • @cityofdowneyca 1