City of Downey FY 2022-2023 Budget-In-Brief

CITY COUNCIL

BUDGET-IN-BRIEF

The City of Downey is pleased to present its Budget in Brief for Fiscal Year 2022-2023. 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 2022-2023 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.

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.

Blanca Pacheco

Mayor

Catherine Alvarez Mayor Pro Tem

Claudia M. Frometa Council Member

Donald E. LaPlante Council Member

Mario Trujillo CounCil MeMber

TOP BUDGET QUESTIONS

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.

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;

Policy Document

Operating Guide

• 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.

What is the annual budget

January - February

1

Priorities Establishment

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

March - April

2

Policy/ Strategy Development

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

timeline?

May - June

3

Budget Adoption

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

June - August

4

Implementation

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

September - December

5

Monitoring and Feedback

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

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.

What is the General Fund Reserve Policy?

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%.

TOP BUDGET QUESTIONS

What is the current economic climate in Downey?

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.

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.

The City’s General Fund Revenue is made up primariliy from property tax and sales tax revenues. Fiscal Year 2022-23 revenues are expected to align with projections.

Property Tax

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

Other Taxes

Business License Fees and the City levies 9%

Transient Occupancy Tax on hotel/motel rooms

JPCC & Ambulance

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

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

TOP BUDGET QUESTIONS

City Council Priorities & FY 2022-23 City Key Budget Goals

Fiscal Responsibility

• 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 CAFR

• Placing Transient Occupancy Tax (TOT) on next ballot.

• Increase amount of online billing payments

• Explore grant opportunities

• Manage American Rescue Plan Stimulus Package Funds

Public Engagement

Cultivate a trustworthy and participatory local government through equitable, transparent, and effective processes

• Complete the installation of new playgrounds and surfacing at Temple & Crawford Parks

• Host a 10-week Youth Academy Program

• Implementation of City Council District Redistricting

• Use of Flash Vote - Satisfaction Surveys/ and Community Input

• Develop a Fire Department public outreach plan that provides public education with a monthly theme

Efficiency & Adaptability

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

• Complete construction of solar energy improvements at various City buildings and facilities.

• Implement Electronic Permitting Services

• Continue to expand the use of employee training courses

• Develop a plan and identify products to upgrade/replace RMS and CAD systems

• Identify and implement an electronic Public Records Request (PRR) Management Software to streamline the PRR process and reduce staff time processing and tracking requests

Economic Vibrancy

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

• Foster Downtown Downey growth and promotion by attracting retail, restaurant, and housing

• Continue assisting in the economic growth of the city by facilitating the revitalization of all our commercial corridors

• Restoration of the former NASA/ Vultee Building

Quality of Life, Safety & Infrastructure

Foster a safe community through key investments and providing inclusive, diverse community programs and activities

• Work with Los Angeles County to explore the reuse of Los Padrinos site for transitional housing

• Adopt Tree Preservation and Protection Ordinance

• Begin the AV upgrade of the current building and the upgrade of the Robotics Lab using State funds

• Complete design and initiate construction of PFAS treatment facilities at two groundwater wells.

• Implement a Drone Program to allow for safer and more efficient response to critical incidents; to survey large open areas; such as river channels, freeway embankments and large parking lots for more timely response to emergencies, to improve tactical observation abilities for increased safety, to increase efficiency of search and rescue and crowd control operations; and significantly reduce the cost to reconstruct major crime scenes and traffic collision scenes.

• Implement a Facility Dog Program

• Initiate implementation of a Citywide fiber optic network system.

• Rehabilitate 158,000 linear feet or 30 miles of residential streets in the City.

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 2022-23 General Fund expenditure budget of $112,022,207 provides basic City services such as Police, Fire, Public Works, and Parks & Recreation.

FY 2022-23 All Fund Expenditures

The adopted overall city-wide FY 2022-2023 budget for all funds is $262,452,415. Overall, this budget reflects a increase of $33,505,764 or 14.63% compared to Fiscal Year 2021-2022..

FY 2022-23 General Fund Expenditures

The Fiscal Year 2022-2022 General Fund expenditure budget of $112,022,207 provides basic City services such as Police, Fire, Public Works, and Parks & Recreation.

60% Public Safety $67,920,831

*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.

TOP BUDGET QUESTIONS

FY 2022-23 Full Time Staffing by Department

FY 2022-23 Capital Improvement Program

Capital improvements are required to maintain the City’s physical infrastructure. The City’s Fiscal Year 2022-2023 Capital Improvement Program (CIP) Budget appropriates $90 Million for street, sewer, light, storm water, water, traffic and public facility improvement projects.

what we offer

parks

and recreation

Parks (120 Acres) 1 Skateboard Park 11 Playgrounds

Bocce Ball Courts 1 Public Swimming Pool open during the summer 8 Camps 2 Golf Courses 1 Cemetery

Walking Trails (2 miles) 11 Tennis Courts 1 Off-leash dog park

public safety

121 Sworn Police Officers 5 Parking Enforcement Officers 3 Community Service Officers 32 Patrol Vehicles 1 Armored Rescue Vehicle 1 Youth Academy 1 Citizens’ Academy 1 Citizens on Patrol/ Volunteer Program 227 Neighborhood Watch Groups 1 Police Explorer Program 1 Business Watch Program 1 Mental Health Team (2 dedicated Officers and 2 LA County Mental Health Professionals in partnership) 1 Homeless Outreach Team (16 Officers assist with outreach service providers) 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 24 Ambulance Operators 13 Fire Communications Center Staff 4 Fire Stations 1 Regional Fire Communications Center 1 Fire Explorer Program 57 Community Emergency Response Team (CERT) Volunteers 3 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 1 Urban Search and Rescue Apparatus

infrastructure

and utilities

214 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 6.3 miles of bike lanes 214 miles of streets and landscaping 170 miles sidewalks

transit

with 53,121 boardings on the DowneyLINK