City of Downey Fiscal Year 2021-2022 Budget-In-Brief

BUDGET-IN-BRIEF The City of Downey is pleased to present its Budget in Brief for Fiscal Year 2021-2022. 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 information on the City’s annual budget, please see the Fiscal Year 2021-2022 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

Claudia M. Frometa

Mayor

MISSION

Blanca Pacheco

Mayor Pro Tem

Sean Ashton

Council Member

Proudly committed to continuously improving the quality of life for the Downey community by providing excellent service in a professional, ethical and responsible manner.

Catherine Alvarez

Council Member

Mario Trujillo

Council Member

FISCAL YEAR 2021-2022

California

VALUES

Integrity l Commitment l Respect l Teamwork Engagement l Passion l Excellence

TOP BUDGET QUESTIONS 1

What is the City Budget?

Communications Device

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.

Policy Document Operating Guide

The budget for the City of Downey is designed to serve four major purposes: • • • •

Financial Plan

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.

2

What is the annual budget timeline?

January - February

March - April

May - June

June - August

September - December

1

2

3

4

5

Priorities Establishment

Policy/ Strategy Development

Budget Adoption

Implementation

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 through a Budget Workshop

All City Council changes to the preliminary buget are incorporated into the final budget document and a public meeting is held.

City Council approve the budget before June 30th per City Charter. Budget is distributed to the public via the City’s website and social media platforms

Monitoring and Feedback

City Council participates in a Goals and Priorities Retreat discussing ongoing programs, new concerns and marquee initiatives

3

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

What essential services does the city provide?

The City of Downey is a full-service city providing Police, Fire, Public Works, Finance, Water, Building & Safety, City Planning, Code Enforcement, Housing, Economic Development, Parks and Recreation, Library, Civic Theatre and Transit.

The City of Downey provides a wide variety of services and programs either directly or through partnerships with local non-profits, for virtually every age and lifestyle.

2 | CITY OF DOWNEY FISCAL YEAR 2021-2022 ADOPTED BUDGET

Emailed Monthly Reports as well as online, on-demand reports provide Department Directors and Division Managers information regarding their actual expenditure amounts, along with their approved budget

TOP BUDGET QUESTIONS 4

What is the General Fund Reserve Policy?

5

What is the current economic climate in Downey?

The City’s General Fund Reserves is comprised of two separate Reserves.

General Fund Reserves consist of the total of the Emergency Reserve and the Stability Reserve. The target level for total General Fund Reserves is 35% of the most recent three-year average of annual audited General Fund operating revenues. The Emergency Reserve is a minimum level of 15%, and the Stability Reserve is a minimum level of 20%.

6

What is City’s Pension Funding Level?

In an effort to actively manage it’s pension costs, the City of Downey took proactive measures last year to reduce the city’s overall pension burden over the next twenty to thirty years by issuing pension obligation bonds to refinance a portion of the City’s obligation to CalPERS.

7

What does receiving the GFOA and CSMFO award mean?

The Government Finance Officers Association of the United States and Canada (GFOA) awards the Distinguished Budget Presentation Award and the California Society of Municipal Finance Officers (CSMFO) awards the Excellence in Budgeting Award to government entities that prepare budget documents of the very highest quality that reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA’s best practices on budgeting, transparency in budgeting, leadership in meeting high standards and setting an example by encouraging others in their efforts to achieve and maintain an appropriate standard of excellence.

4

BUDGET-IN-BRIEF | 3

TOP BUDGET QUESTIONS 9 Where do city funds come from?

FY 2021-22 Projected All Fund Revenues

1%

Successor Agencies

11%

2%

The City’s General Fund Revenue is made up primariliy from property tax and sales tax revenues. Fiscal Year 2021-22 revenues are expected to align with projections.

Internal Service Funds

$1,750,000

$4,691,000

48%

Enterprise Funds

$22,102,100

General Fund & Reserve Funds

1%

$94,190,605

Grant Funds

$2,086,000

Business License Fees and the City levies 9% Transient Occupancy Tax on hotel/motel rooms

JPCC & Ambulance

36%

Fire Department provides emergency transport and dispatch services for three neighboring cities

Special Revenue & Capital Funds

$70,553,525

FY 2021-22 Projected General Fund Revenues

10 7%

32%

Utility User Tax

$6,200,000

Sales Tax

$30,411,728

3%

Franchise Fee

5%

JPCC & Ambulance

$4,645,000

$93.8M

14% Other

$13,375,544

2%

Charges to Other Funds

$31,934,273

5%

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.

Franchise Fees

This tax is paid by local gas, electric, cable TV, rubbish and other utility companies

Why does my $10 purchase cost $11?

Purchase $10.00 +

$2,635,000

34%

For every $1 paid in property tax, $0.14 is returned to the City

Other Taxes

$195.4M

Property Tax

Property Tax

$2,108,100

Transfers from Other Funds

$2,511,688

4 | CITY OF DOWNEY FISCAL YEAR 2021-2022 ADOPTED BUDGET

0.60 = State Government 0.10 = City of Downey City of Downey 20 Year 0.05 = 1/2 Cent Sales Tax Proposition M 0.05 = Transportation R 0.05 = Proposition Transportation 0.05 = Proposition A Transit 0.05 = Proposition C Transit 0.03 = County Transit H Homeless 20 0.03 = Measure Year 1/4 Cent Sales Tax

= Total Cost $11.00

TOP BUDGET QUESTIONS

$0.3345

$0.2154

Educational Augmentation City of Downey Tax District Fund Impound

$0.1631

$0.1397

Other

Downey Unified School District

Cerritos Community College

L.A. County

Educational Revenue Augmentation Fund

11 Where does your property tax go?

$0.0734 $0.0262 $0.0477 Other

0.01394 Co. Sanitation Dist. No. 2 Operating 0.01035 LA Co Flood Control Maintenance 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

12

• •

• • • •

0.00146 LA Co School Service Fund—Downey 0.00089 Downey Cemetery District 0.00052 Develop. Center Handicapp Minor - Downey 0.00039 Greater LA Co Vector Control District 0.00018 Water Replenishment District of So Cal 0.00012 LA Co Accum. Cap. Outlay

City Council Priorities & FY 2021-22 City Key Budget Goals

Fiscal Responsibility

Efficiency & Adaptability

Maintain a financially stable local government

Create an environment where new processes and programs are encouraged and are used to improve internal and external services

Ensure a Balanced Budget Receive Government Finance Officers Association (GFOA) and California Society of Municipal Finance Officers (CSMFO) awards for the City’s Budget and Annual Comprehensive Financial Report (ACFR) Increase amount of online billing payments Explore grant opportunities Issue Bonds for the financing of street rehabilitation projects in the City Manage American Rescue Plan Stimulus Package Funds

•

• •

Economic Vibrancy Support community needs through a stable, vibrant and diverse local economy •

$0.0477

Continue to support residents and business with COVID-19 financial assistance

• • • •

Develop Cyber Security policy and procedures to be in compliance with Department of Homeland Security Grant Security requirements Implement more technology within the fire department such as paperless inspections Upgrade the City’s phone carrier service from PRI (Analog) to SIP (Digital) services, this will allowing for more features and function on our City phone system

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

•

Expand Anti-Littering Campaign Expand the Neighborhood Watch Program Increase social media followers Facilitate the Downey Police Department’s first Youth Academy

•

•

Assist City Council Housing Subcommittee as it explores Affordable Housing development Completion of Rancho South Campus Sports Complex Complete Housing Element Update Restoration of the former NASA Vultee Building Initiate Fire Service Accreditation program Develop additional adaptive programming with social and enrichment programs Increase events at the Theatre - “Reintroduce programming” Rehabilitate approximately 60,000 linear feet or 12 miles of residential and arterial streets in the City Develop a free residential yard tree program that gives away 300 fruit trees to City residents to plant them in their properties Increase the number of trained officers in the police officer Tactical Medic Program, which provides emergency treatment to officers and the public in tactical emergency situations

BUDGET-IN-BRIEF | 5

TOP BUDGET QUESTIONS 13 Where does the money go?

Every year, the Mayor, City Council, City Manager and city staff forecast the coming year’s expenditures and incorporate those estimates into the City Budget. The Fiscal Year 2021-2022 General Fund expenditure budget of $93,816,239 provides basic City services such as Police, Fire, Public Works, and Parks & Recreation.

FY 2021-22 All Fund Expenditures

59%

***All Other Funds

$228.9M

$135,120,412

The adopted overall citywide FY 2021-2022 budget for all funds is $228,946,651.

Overall, this budget reflects a decrease of $13,029,135 or 5.4% compared to Fiscal Year 20202021.

41%

General Fund

$93,816,239 FY 2021-22 General Fund Expenditures The Fiscal Year 2021-2022 General Fund expenditure budget of $93,816,239 provides basic City services such as Police, Fire, Public Works, and Parks & Recreation.

5%

Community Development

7%

6%

Finance

$6,006,144

6%

Parks & Recreation

$5,752,289

$4,848,913

26% Fire

**Administration

$24,099,840

$6,192,200

1%

*Transfers Out

$1,061,500

9%

Public Works

66%

$93.8M

Public Safety $61,692,341

$8,262,852

40% Police

$37,592,501 *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.

6 | CITY OF DOWNEY FISCAL YEAR 2021-2022 ADOPTED BUDGET

TOP BUDGET QUESTIONS FY 2021-22 Full Time Staffing by Department

5%

4%

Finance

2%

Parks & Recreation

26% Fire

Community Development

7%

Administration

18% Public Works

425 38% Police

The adopted budget maintained the same level of Full Time Staffing as the previous year.

FY 2 0 2 1 - 22 Capi t al 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 2021-2022 Capital Improvement Program (CIP) Budget appropriates $86 Million for street, sewer, light, storm water, water, traffic and public facility improvement projects.

BUDGET-IN-BRIEF | 7

at-a-glance

who we are

what we offer

incorporation: December 17, 1956 government: Downey voters approved Downey as a Charter City in November 1996. The City operates under the City Council - City Manager form of government area: 12.6 miles (12.4 Land and 0.2 Water) city budget FY 2021-2022: $229 million number of city employees: 425 credit rating: AA, second-highest bond rating by S&P population: 112,322 population per square mile: 8,819.60

16-24 Years Under 15 Years

23%

10

80 70 60

<than High School Diploma 20%

20 10 0

20

14%

74.8%

10 0

City Library

20 25 Ethnicity

80 30

25%

High School Diploma

15

70 60

40 31%

Some College

19.5% 30

3.3% 0.1% 6.8% 1.2%

Population over1525 Years of25Age30 74,701 0 5 10 20 35

largest employers

5,400 Kaiser Permanente 3,044 Downey Unified School District 2,000 Stonewood Shopping Center 1,600 Rancho Los Amigos Medical Center 1,500 PIH Health 973 L.A. County Office of Educaton 834 City of Downey 800 Coca Cola Bottling Company 712 L.A. County Internal Services Department 450 Lakewood Health Center

5.5%

$75,878

from last year

5.2%

Per Capita Income

from last year

Source: City of Downey Comprehensive Annual Report for FY Ended 06/30/2020

$28,785

Civic Theatre

Community & Space LearnSenior Center ing Center

Farmer’s Market

Median Household Income

where we are

121 Sworn Police Officers 5 Parking Enforcement Officers 3 Community Service Officers 31 Patrol Vehicles 1 Armored Rescue Vehicle 1 Citizens’ Academy 1 Citizens on Patrol/ Volunteer Program 267 Neighborhood Watch Groups 1 Police Explorer Program 1 Business Watch Program 1 Mental Health/ Homeless Outreach Team (2 dedicated Officers and 2 LA County Mental Health Professionals in partnership) 1 Tactical Medical Team 1 Internet Crimes Against Children Task Force Team 1 Park Ranger Program (4 Part Time Park Rangers) 68 Sworn Fire Personnel 4 Fire Stations 24 Ambulance Operators 1 Fire Explorer Program 57 Community Emergency Response Team (CERT) Volunteers 4 CERT Trainings (English/ Spanish / High School) 1 Auxiliary Firefighter Program 1 Training Tower 1 Command Vehicle 4 Paramedic Engines 1 Ladder Truck 4 Rescue Ambulances

infrastructure and utilities

227 miles of roadways 115 traffic signals 6,643 streetlights 276 miles of water mains 200 miles of sanitary sewer mains 24,000 sewer and water connections 33 miles of storm drain lines 20,000 trees 115 acres of parklands 5.23 miles of bike lanes 214 miles of streets and landscaping 170 miles sidewalks

transit

95,819 Miles Traveled with 61,678 boardings on the DowneyLINK Fixed Route Transit System 14,728 Dial-ARide trips for seniors and persons with disabilities

business and industry 12 miles from downtown Los Angeles

18 miles from Ports

17 miles from Disneyland

direct access to four major freeways 5, 105, 605, 710

17 miles from LAX International Airport

Fixed Route Transit System

public safety

Other

5

5

Bachelor’s Degree or Higher

14%

Asian

10 Education

0

29.5%

25-44 Years

0

15

25%

45-64 Years

Black or African American American Indian\ Alaskan Native

48.9

12 Parks (115 Acres) 1 Skateboard Park 11 Playgrounds 2 Bocce Ball Courts 1 Public Swimming Pool open during the summer 2 Summer Camps 2 Golf Courses 1 Cemetery 4 Walking Trails 11 Tennis Courts 1 Off-leash dog park 3 Soccer Fields 6 Futsal Courts 2 Handball Courts 1 Challenger Obstacle Course 4 Fitness Stations 27 Picnic Shelters 5 Outdoor Sand Volleyball Courts 6 Outdoor Basketball Courts 3 Activity Rooms 2 Public Ponds 1 Gymnasium 13 Ball Diamonds 1 Indoor Basketball & Volleyball Courts 2 Access to bike route trail heads

12%

Hispanic

48.7%

65 Years+

White

51.2%

Age Distribution

Median Age 35.6 years old

parks and recreation

10 miles from Pacific coastline

3,275 Businesses 356 New Businesses 1 Regional mall 5 Major shopping centers 3 Hospitals 1 Chamber of Commerce

Source: City of Downey Police, Fire, Public Works and Finance Departments

11111 Brookshire Avenue | Downey, CA 90241 | 562.869.7331 | www.downeyca.org