CALIFORNIA
CITY OF DOWNEY
BUDGET IN BRIEF FISCAL YEAR 2020-2021
The City of Downey is pleased to present its Budget in Brief for Fiscal Year 2020-2021. This document is meant to provide an overview of the City Annual Operating Budget and Capital Improvement Program (CIP). It includes a snapshot of the City’s comprehensive financial plan with which the City Council delivers core municipal services to the Downey community. The Budget also advances Downey's Mission and Values, City Council Priorities, Annual City’s Budget Goals and Objectives and the City’s performance management program. For more details on the City’s budget, please see the Fiscal Year 2020-2021 City Annual Budget at www. downeyca.org/budget or contact the City’s Finance Department at 562.869.7331. For more information on the City’s Capital Improvement Program, visit www.downeyca.org/cip or to learn more about the City’s Performance Indicators, visit www.downeyca.org/performance-management.
CITY COUNCIL
Blanca Pacheco
Mayor
Claudia M. Frometa
Mayor Pro Tem
Alex Saab
Council Member
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.
Sean Ashton
Council Member
Rick Rodriguez
Council Member
VALUES Integrity l Commitment l Respect l Teamwork Engagement l Passion l Excellence
What is the City Budget? The City’s Budget sets forth a strategic resource allocation plan to fund City programs, services and infrastructure. The City’s budget is composed of an operating budget, which forecasts the City’s expenditures and revenues for the upcoming year, and a capital improvement plan, which shows the financial plans for long-term capital improvements, facilities, and equipment. The fiscal year of the City begins on July 1st of each year and ends on June 30th of the following year.
Communications Device
Financial Plan
Policy Document Operating Guide
Budget development timeline The budget for the City of Downey is designed to serve four major purposes: • • • •
Comply with legal requirements for charter law cities in the State of California; Provide an operations guide and policy document for administrative staff in the management and control of fiscal resources; Present the City’s financial plan for the ensuing fiscal year, itemizing projected revenues and estimated expenditures; and Be a resource to citizens who wish to understand the operations and costs of City services.
1 Priorities Establishment JANUARY - FEBRUARY
City Council participates in a Goals and Priorities Retreat discussing ongoing programs, new concerns and marquee initiatives
2
2 Policy/ Strategy Development MARCH - APRIL
City Management Team uses the Council’s key policy issues to determine staff objectives to achieve its long-range strategic goals within the upcoming budget document
3 Budget Adoption MAY - JUNE
City Council and the public review the recommended budget to see how each Department has incorporated City Council’s long-term goals and objectives into its work plan
4 Implementation JUNE - AUGUST
All City Council changes to the preliminary buget are incorporated into the final budget document and a public meeting is held. Budget is distributed to the public via the City’s website and social media platforms.
5 Monitoring & Feedback SEPTEMBER - DECEMBER
Emailed Monthly Reports as well as online, ondemand reports provide Department Directors and Division Managers information regarding their actual expenditure amounts, along with their approved budget
City of Downey Budget in Brief | FY 2020-2021
City Council Priorities & FY 2020-2021 City Key Budget Goals
• • • • •
Fiscal Responsibility
Economic Vibrancy
Maintain a financially stable local government
Support community needs through a stable, vibrant and diverse local economy
Ensure a Balanced Budget Receive GFOA and CSMFO awards for the City’s Budget and CAFR Increase amount of online billing payments Review Citywide Lighting and Landscaping District assessment rates Explore grant opportunities
•
•
•
Efficiency & Adaptability Create an environment where new processes and programs are encouraged and are used to improve internal and external services • • • • •
• •
Implement a Public Records Request System to streamline the process Update City’s systems, hardware, and data servers Upgrade Fire Department’s Records Management System Develop a staff succession planning Implement an integrated work order/service request management software for maintenance items Implement magnetic card key reader system at City facilities Obtain ICMA Performance Measures Certification Award
• • • •
Explore Enhanced Infrastructure Financing District for the West Santa Ana Branch Light Rail Line Obtain ownership of the Coffman Wing and develop into a STEM incubator, Downey Museum and cultural offerings Redevelopment of the Promenade Back 20 & NASA/ Vultee building Proactive use of Los Padrinos Juvenile Hall and coordinate with Los Angeles Install Wayfinding for key City areas Complete a specific plan for Rancho Los Amigos South Campus, light rail station Continue to Foster Downtown Growth
Quality of Life, Safety & Infrastructure Foster a safe community through key investments and providing inclusive, diverse community programs and activities
• • •
• • • • • •
Public Engagement Cultivate a trustworthy and participatory local government through equitable, transparent, and effective processes • • • •
City of Downey Budget in Brief | FY 2020-2021
Create a Downey Arts Council Cross-marketing at Parks Expand the Neighborhood Watch Program Increase social media followers
•
• •
•
Finalize the completion of Measure S projects Develop an in-house Theater company Begin the 2nd building expansion project at the Columbia Memorial Space Center, including identifying designers, the program plan, and community needs Launch new programming at the Library due to re-opening Explore a hotspot check out program for veterans and low income individuals Provide a library card to all Downey High school students Review on-line registration process for parks and recreation programming Increase events at Downey Theatre Increase events at Rio Hondo Golf Course and Event Center Implement a police officer tactical medical program to provide emergency treatment to officers and the public in tactical emergency situations Implement a Citywide Active Transportation Plan Install rectangular rapid flashing beacons at marked uncontrolled crosswalks at high volume or arterial street locations Implement two water pressure zones in the City to increase reliability of water service and supply to the community
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Where does the money go? FY 2020-21 All Fund Expenditures
FY 2020/21 General Fund Expenditures The Fiscal Year 2020-2021 General Fund expenditure budget of $98,238,268 provides basic City services such as Police, Fire, Public Works, and Parks & Recreation.
59%
***all other funds
5%
$143,737,518
community development
7%
finance
$6,731,462
$5,068,234
$242M
26%
6%
fire
$25,142,804
**administration
41%
$6,312,567
0.6%
general fund
*transfers out
$98,238,268
$550,000
$98.2M
8%
parks & recreation
8%
The adopted overall city-wide FY 2020-2021 budget for all funds is $241,975,786. Overall, this budget reflects a decrease of $19,317,616 or 7.39% compared to Fiscal Year 20192020.
$7,460,551
public works
$7,933,934
40% police
$39,008,716 *Transfers Out includes funds transferred from General Fund to Columbia Memorial Space Center and Measure S Sales Tax. **Administration includes City Council, City Attorney, Human Resources, Library and Columbia Memorial Space Center. *** All other funds include Special Revenue and Capital Funds and Grant funds that are restrictred and only used for a specific purpose; and Enterprise Funds that operate on a profit-and-loss basis.
FY 2020-21 Full Time Staffing by Department
12 City Administration
4.7%
3.7%
finance
428
Columbia Memorial Space Center
City Clerk
20 Community Development
16 Finance
parks & recreation
109
17.5% public works
City Attorney
3
3%
7.5%
administration
25.5% fire
community development
2
1
Fire
9
5 Library
Human Resources
38%
police
The adopted budget maintained the same level of Full Time Staffing as the previous year. 4
13 Parks & Recreation
163 Police
75 Public Works
City of Downey Budget in Brief | FY 2020-2021
FY 2 020- 21 C api t a l I m p r ov e m e nt P r og r a m Capital improvements are required to maintain the City’s physical infrastructure. The City’s Fiscal Year 2020- 2021 Capital Improvement Program (CIP) Budget appropriates $92.7 Million for street, sewer, light, storm water, water, traffic and public facility improvement projects. Public Facilities Improvement Projects include: • Fire Stations No. 2 & 4 Modernization & Expansion Projects • Rancho Sports Complex • Civic Theatre Improvement • Library Renovation • Park Improvements
30%
public facilities
$27,422,935
3%
Sewer & Storm Drain Improvement Projects include: • Sewer Main Rehabilitation & Repair Program • Wilderness Park Sewer Lift Station • Firestone Boulevard Dry Well Improvements • Sewer CCTV Inspection Program • Catch Basin Inserts
sewer & storm drain Traffic & Safety Improvement Projects include: • Downey Bike Master Plan Implementation Phase 1 Downtown/ Transit • Stewart & Gray Road Signalization & Safety Enhancements • Paramount Boulevard Signalization & Safety Enhancements • Citywide Transit Priority System • Imperial Highway Signalization & Safety Enhancements
$2,400,000
13%
traffic & safety
$12,221,066
13% Water Improvement Projects include: • New Water Wells No. 27 and No. 28 • 3rd Street Water System Improvements • Florence Avenue Water System Improvements • Pellet Street and Ryerson Avenue Water System Improvements
water
$12,100,000
$92.7M 42%
Street Improvement Projects include: • Telegraph Road Traffic Throughput & Safety Enhancements, Phase 2 • Lakewood Boulevard at Florence Avenue Intersection Improvements • Paramount Boulevard at Imperial Highway Intersection Improvements • Old River School Road Pavement Rehabilitation • FY 19-20 Residential Streets Pavement Rehabilitation • Firestone Boulevard at Lakewood Boulevard Intersection Improvements
streets
$38,579,688
Measure S, a 1/2 percent to the transactions and use tax, was approved by 63% of Downey voters in November 2016 and went into effect April 1, 2017. Measure S provides $10,200,000 in new revenue to the City each year, which is allocated for public safety personnel and related safety and community programs, and the debt service of the $50 million lease revenue bond which is funding the aforementioned improvements. City of Downey Budget in Brief | FY 2020-2021
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How do we pay for our services? FY 2020-21 Projected General Fund Revenues 6%
utility user tax $6,750,000
27%
sales tax $29,242,800
3%
franchise fee $2,580,000
4%
jpcc & ambulance $4,454,000
property tax
14%
$106.8M
other $15,145,934
For every $1 paid in property tax, $0.14 is returned to the City
2%
other taxes
charges to other funds $2,107,200
Business License Fees and the City levies 9% Transient Occupancy Tax on hotel/ motel rooms
5%
transfers from other funds $5,283,081
29%
property tax $30,695,652
The City’s General Fund Revenue is made up primariliy from property tax and sales tax revenues. Fiscal Year 2019-2020 revenues and expenditures were initially in line with previous projections, however adjustments needed to be made due to the financial impacts of the COVID-19 crisis. sales tax
For every $10 of purchases, residents, businesses, and visitors pay $1 in sales tax. Of this amount, the city receives $0.15
utility user tax
Residents and businesses pay a Utility Users tax for electricity, gas, and telephone.
jpcc & ambulance Fire Department provides emergency transport and dispatch services for three neighboring cities
10%
sales of city property $10,600,000
franchise fees
This tax is paid by local gas, electric, cable TV, rubbish and other utility companies
In Fiscal Year 2020-21, the overall major general fund revenue estimate is $106,858,667, up 13.76% compared with last year’s total revenue projection of $93,932,898. Property and sales taxes revenues, and a land of sale service as the major contributors for the overall revenue increase. Utility Users Tax is projected to decline as more residents move away from land line phones. Type
Adopted Budget FY 2020-2021
% Change
Property Tax
28,795,800
30,695,652
7%
Sales Tax
28,015,000
29,242,800
4%
Utility User Tax
6,900,000
6,750,000
-2%
Franchise Fee
2,531,300
2,580,000
2%
JPCC & Ambulance
4,453,900
4,454,000
0%
15,195,598
15,145,934
0%
Charges to other Funds
2,108,100
2,107,200
0%
Transfers from other Funds
3,933,200
5,283,081
34%
Sale of Property
2,000,000
10,600,000
430%
$93,932,898
$106,858,667
14%
Other
Total
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Budget FY 2019-2020
City of Downey Budget in Brief | FY 2020-2021
Why does my $10 purchase cost $11?
Economic Indicators Unemployment
Purchase $10.00 +
0.60 = State Government 0.10 =
City of Downey
0.05 =
City of Downey 20 Year 1/2 Cent Sales Tax
5.3%
California unemployment rate
14.7%
National unemployment rate
5.9%
Downey unemployment rate
Proposition M
0.05 = Transportation 0.05 =
City Assessed Valuation
Proposition R Transportation
City Sales Tax
0.05 = Proposition A Transit
Median Household Income
0.05 = Proposition C Transit
5.3%
0.03 = County Transit 0.03 =
Increase in Property Assessed Valuation
Measure H Homeless 20 Year 1/4 Cent Sales Tax
$13.2 Million
= Total Cost $11.00
$
$1,227,800 Projected increase of
4%
In Assessed Value
$0.2154
Educational Augmentation Fund Impound
$0.1631
City of Downey Tax District
$0.1397
Other
$0.0477
0.01394 Co. Sanitation Dist. No. 2 Operating 0.01035 LA Co Flood Control Maintenance
Other
Downey Unified School District
Educational Revenue Augmentation Fund Cerritos Community College
$0.3345
5.5%
Increase from last year
Where does your property tax go? L.A. County
$71,948
$0.0734
0.00768 LA Co FFW 0.00743 LA Co School Service Fund—Downey 0.00291 Children’s Instil. Tuition Fund 0.00183 LA Co Flood Dr. Imp. District Maintenance 0.00146 LA Co School Service Fund—Downey
$0.0262
0.00089 Downey Cemetery District 0.00052 Develop. Center Handicapp Minor - Downey
$0.0477
0.00039 Greater LA Co Vector Control District 0.00018 Water Replenishment District of So Cal 0.00012 LA Co Accum. Cap. Outlay
City of Downey Budget in Brief | FY 2020-2021
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at-a-glance
who we are
what we offer
incorporation: December 17, 1956 government: Downey voters approved Downey as a
20 30 10 20
48.9
0 10
0
14.4% 73.9%3
.0%0
.1%7
.1%1
Other
30 40
Asian
40 50
Hispanic
49%
50 60
White
51.1 51.6
60 70
Ethnicity
51%
70 80
American Indian
80
Median Age 35.6 years old
Black or African American
Charter City in November 1996. The City operates under the City Council - City Manager form of government population: Approximately 112,900 area: 12.6 miles credit rating: AA, second-highest bond rating by S&P
parks and recreation
12 Parks (115 Acres) 1 Skateboard Park 10 Playgrounds 2 Bocce Ball Courts 1 Public Swimming Pool open during the summer 4 Summer Camps 2 Golf Courses 1 Cemetery 4 Walking Trails 11 Tennis Courts 1 Off-leash dog park 4 Soccer Fields 3 Futsal Courts 2 Handball Courts 1 Challenger Obstacle Course 4 Fitness Stations 19 Picnic Shelters 4 Outdoor Sand Volleyball Courts 6 Outdoor Basketball Courts 3 Activity Rooms 2 Public Ponds 1 Gymnasium 10 Ball Diamonds 1 Indoor Basketball & Volleyball Courts 2 Access to bike route trail heads 3 Middle & 9 Elementary school ASPIRE (after school educational program sites)
.5%
largest employers 5,335 Kaiser Permanente 1,982 Downey Unified School District 1,765 Stonewood Shopping Center 1,500 PIH Health 1,600 Rancho Los Amigos Medical Center 1,200 L.A. County Office of Educaton 841 City of Downey 800 Coca Cola Bottling Company 712 L.A. County Internal Services Department 450 Lakewood Health Center
where we are 12 miles from downtown Los Angeles
18 miles from Ports
17 miles from Disneyland
City Library
Civic Theatre
Community & Senior Center
Space Learning Center
Farmer’s Market
Fixed Route Transit System
business and industry 3,275 Businesses 1 Regional mall 5 Major shopping centers 3 Hospitals 1 Chamber of Commerce
public safety 121 Sworn Police Officers 5 Parking Enforcement Officers 3 Community Service Officers 1 Citizens’ Academy 1 Citizens on Patrol/ Volunteer Program 222 Neighborhood Watch Groups 1 Police Explorer Program 1 Business Watch Program 1 Police Department Mental Health/ Homeless Outreach Team 68 Sworn Fire Personnel 24 Ambulance Operators 1 Fire Explorer Program 57 Community Emergency Response Team (CERT) Volunteers 4 CERT Trainings (English/ Spanish / High School)
infrastructure and utilities direct access to four major freeways 5, 105, 605, 710
17 miles from LAX International Airport
10 miles from Pacific coastline
227 miles of roadways 114 traffic signals 6,000 streetlights 276 miles of water mains 187 miles of sanitary sewer mains 33 miles of storm drain lines 20,000 trees 115 acres of parklands
11111 Brookshire Avenue Downey, CA 90241 www.downeyca.org