City of Downey Fiscal Year 2020-2021 Budget-In-Brief

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

3

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

5

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