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.
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.
City of Downey
Summary of Captial Assets (Net of Depreciation) For Fiscal Year Ended June 30, 2025 and 2024 (Amounts Expressed in Thousands)
Governmental ActivitiesBusiness-Type ActivitiesTotal
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.
• 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.
City of Downey
Summary of Changes in Long-Term Liabilities (Amounts Expressed in Thousands)
BalanceBalance
June 30,June 30,Due Within 2024AdditionsReduction2025One-Year
Purchases3,187 -8342,353 853 Lease Payable2,056 819 8412,034 696
Subscription Payable 3241,305 6281,001 518 Loans Payable5,092 - 903 4,189 928
Total194,214 $ 2,124 $
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.
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.
DEFERRED OUTFLOWS OF RESOURCES
CITY OF DOWNEY, CALIFORNIA Statement of Activities
For the Year Ended June 30, 2025
Program Revenues
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
Restatements - changes in accounting principle and error correction
Net position-beginning, as restated
Net position-ending
Net (Expenses) Revenues and Changes in Net Position
Primary Government
FUND BALANCES (DEFICITS)
Housing Authority CIP Grant Fund
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:
Capitalassets,netofaccumulateddepreciation/amortization,usedingovernmentalactivities are not financial resources and, therefore, are not reported in the funds.
fund balances - governmental funds 108,656,553 $ 318,216,090
Differencesbetweenexpectedandactualexperiences,assumptionchangesandnet differencesbetweenprojectedandactualearnings,andcontributionssubsequenttothe measurementdateforthepostretirementbenefits(pensionandOPEB)arerecognizedas deferredoutflowsofresourcesanddeferredinflowsofresourcesontheStatementofNet Position.
Deferred outflows-pension related32,527,329
Deferred outflows-OPEB related4,526,069
Deferred inflows-pension related(244,587)
Deferred inflows-OPEB related(1,297,763)
Otherlong-termassetsthatarenotavailabletopayforcurrentperiodexpendituresand, therefore, are either labeled unavailable or not reported in the funds.
Internalservicefundsprovideservicestootherfundsonacost-reimbursementbasis.The assets,deferredoutflowsofresources,liabilities,anddeferredinflowsofresourcesofthe internal service funds are included in governmental activities in the Statement of Activities.
Long-termliabilitiesthatarenotdueandpayableinthecurrentperiod,andtherefore,arenot reported in the funds.
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
Governmentalfundsreporttheeffectofpremiums,discounts,andrefundingsandsimilar itemswhendebtisfirstissued,whereas,theseamountsaredeferredandamortizedinthe Statement of Activities.
(127,905,166)
(9,110,477)
(332,264,138)
(7,001,532) Total premiums, discounts, and deferred items (6,930,439)
155,782,511 $
CITY OF DOWNEY, CALIFORNIA
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
EXPENDITURES
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
Governmentalfundsreportcapitaloutlaysasexpenditures.However,intheStatementof Activities,thecostoftheseassetsisallocatedovertheirestimatedusefullivesandreported asdepreciation/amortizationexpense,disposalsofcapitalassetsarenotrecognizedatthe governmentalfundlevel.Thisistheamountbywhichcapitaloutlaysexceeded depreciation/amortizationexpense,andtheadjustmenttogains(losses)fordisposalofcapital assets, in the current period.
RevenuesintheStatementofActivitiesthatdonotprovidecurrentfinancialresourcesarenot reported as revenues in the funds.
Bondandotherdebtproceedsprovidecurrentfinancialresourcestogovernmentalfunds,but issuingdebtincreaseslong-termliabilitiesintheStatementofNetPosition.Repaymentof bondandotherdebtprincipalisanexpenditureinthegovernmentalfunds,butrepayment reduceslong-termliabilitiesintheStatementofNetPosition.Also,governmentalfundsreport theeffectofpremiums,discounts,andsimilaritemswhendebtisfirstissued,whereasthese amounts are deferred and amortized in the Statement of Activities.
Internalservicefundsprovideservicestootherfundsonacost-reimbursementbasis.Thenet revenue of certain activities of internal service funds is reported with governmental activities.
SomeexpensesreportedintheStatementofActivitiesdonotrequiretheuseofcurrent financialresourcesand,therefore,arenotreportedasexpendituresinthegovernmental funds. CITY
8,188,552 (2,122,433)
Statement of Net Position
Proprietary Funds
June 30, 2025
Adjustment
INFLOWS OF RESOURCES
CITY OF DOWNEY, CALIFORNIA
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended June 30, 2025
Business-Type Activities
CITY OF DOWNEY, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
CITY OF DOWNEY, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation/amortization expense1,176,367
(Increase) decrease in accounts receivable(4,904,658)
(Increase) decrease in leases receivable-
(Increase) decrease in inventories164,859
(Increase) decrease in prepaid items(6,931)
Increase (decrease) in accounts payable351,989
(183,199) Increase (decrease) in accrued liabilities35,736
Increase (decrease) in deposits payable1,15540,191
Net cash provided by (used for) operating activities3,291,153 $
(901,408)
$ (1,844,043) $
June 30, 2025
CITY OF DOWNEY, CALIFORNIA
Statement of Changes in Fiduciary Net Position Fiduciary Funds
For the Year Ended June 30, 2025
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.
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.
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.
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 government wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
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:
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.
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.
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
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 right to use 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 straight line 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.
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 right to use subscription asset (subscription asset) in the government wide 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 straight line 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.
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:
Fund NameFund TypeDeficit
Waste ReductionNonmajor Special Revenue Fund(140,602)
Hazardous MaterialNonmajor Special Revenue Fund(158,151)
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.
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:
accounts9,270,722
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.
Authorized Investment Type
United States Treasury Bills, Bonds and Notes5 yearsNoneNone
United States Government Sponsored Agency Securities5 yearsNoneNone
Small Business Administration Loans5 yearsNoneNone
California Local Agency Obligations5 yearsNoneNone
Certificates of Deposits (or Time Deposits)5 yearsNoneNone
Negotiable Certificates of Deposits5 years30%None
Medium-Term Corporate Notes5 years30%None
Bankers' Acceptances180 days40%30%
Commercial Paper270 days25%5%
Repurchase Agreements90 days50%None
Municipal Bonds5 yearsNoneNone
Local Agency Investment Funds (LAIF)N/ANoneNone
Money Market Mutual FundsN/ANoneNone
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:
Investment Maturities (in Months)
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:
as of June 30, 2025
Investments: United States Government Sponsored Agency Securities
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:
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:
Total as of June 30, 2025 12
Investments: Federal Government Agency30,280,156 $ - $ 30,280,156 $ US Treasury Note29,678,400 - 29,678,400
Negotiable Certificates of Deposit20,701,242 - 20,701,242
Corporate Medium Term Notes15,515,628 - 15,515,628
Local Agency Investment Fund55,429,968 - 55,429,968
Total Cash Investments151,605,394 - 151,605,394
Investments with Fiscal Agents: Money Market Funds3,275,191 3,275,191Cash with LA County873,196 873,196Housing and Urban Development1,737,104 1,737,104Total Investments with Fiscal Agent5,885,491 5,885,491Total Investments157,490,885 $ 5,885,491 $ 151,605,394 $
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.
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:
Due from Other Funds Due to Other FundsGeneral Governmental Funds: CIP Grant Fund395,595 $
Total2,984,462 $
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:
Transfers In
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.
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.
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:
Governmental Activities
Fiscal Year Principal Payments Interest Payments
2026376,262 $
2030420,245
2031 - 20352,004,038 1,380,261 3,384,299 2036 - 20402,343,421 1,195,517
2046 - 20503,166,810
Business-Type Activities
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:
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:
Governmental Activities
Year
Payments
Year
Payments
Business-Type Activities
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:
Governmental Activities
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:
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:
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:
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:
AND STORM DRAIN FUND
not being depreciated:
being depreciated:
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.
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.
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:
Year Ending June 30, Principal Interest
2026810,000 $ 554,301
Total10,905,000 $ 3,102,154 $ 14,007,154 $
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:
Year Ending June 30, Principal Interest
20302,555,000 880,163 3,435,163
2031-203514,750,000 2,428,788 17,178,788
2036-20376,685,000 208,331 6,893,331
Total33,040,000 $ 8,225,934 $ 41,265,934 $
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.
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
Year Ending June 30, Principal Interest
Business Type Activity
Year Ending June 30, Principal Interest
2027160,169 98,800
2028160,566 96,611 257,176 2029161,161 94,095 255,256
2030161,955 91,274 253,229
2031-2035900,080 407,699 1,307,780
2036-20401,268,250 274,202 1,542,452 2041-20441,091,408 79,832 1,171,240
Total4,063,957 $ 1,242,873 $ 5,306,830 $
Year Ending June 30, Principal Interest
Governmental98,316,043 $ 30,067,830 $ 128,383,873 $ Business4,063,957 1,242,873 5,306,830
Total102,380,000 $ 31,310,703 $ 133,690,703 $
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
Year Ending June 30,
2021B Measure R Bond – Governmental Activity
Year Ending June 30, Principal Interest
$
$
297,031 837,031 2028560,000 275,431 835,431 2029580,000 253,031 833,031 2030605,000 229,832 834,832
765,956
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:
Year Ending June 30, Principal
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:
Year Ending June 30,PrincipalInterestTotal
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,PrincipalInterestTotal
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:
Year Ending June 30, Principal
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:
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:
Payable, June 30, 20235,258,000
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
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:
CalPERS Miscellaneous Plan7,939,764 $ (40,698,023) $ - $ 7,494,028 $ CalPERS Safety Plan25,015,856 (89,402,499) (244,587) 20,440,058 Total pension plans32,955,620
The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows:
liability payment
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’
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:
Actuarial Cost Method
Actuarial Assumptions
Entry Age Actuarial Cost Method
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
(1)ThemortalitytableusedwasdevelopedbasedonCalPERS’specificdata.Formore details on this table, please refer to the 2017 experience study report.
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:
CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements For the Year Ended June 30, 2025
NOTE 15: CITY EMPLOYEE RETIREMENT PLAN (CONTINUED)
Asset Class 1
Global Equity Non-Cap-weighted Private Equity
Treasury
Mortgage-Backed Securities Investment Grade Corporates
1 An expected price inflation of 2.30% used for this period.
2 Figures are based on the 2022 Asset Liability Management study.
C. Changes in Net Pension Liability
The changes in the Net Pension Liability recognized over the measurement date for each Plan follows:
(Decrease)
CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 15: CITY EMPLOYEE RETIREMENT PLAN (CONTINUED)
Safety Plan
Increase (Decrease)
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:
Difference between Expected and Actual
(38,473,835) Benefit Payments including Refunds of Employee Contributions(27,410,902) (27,410,902)Administration Expenses-
Net Changes During 2023-2419,176,764 23,732,528 (4,555,764) Balance at: 6/30/2024 (Measurement Date)522,161,519
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:
Plan's Net Pension Liability
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.
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:
Difference between projected and actual earnings
All other amounts
5 year straight-line amortization
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:
Straight-lineamortizationovertheexpectedaverage remainingservicelifetime(EARSL)ofallmembersthat areprovidedwithbenefits(active,inactive,andretired) as of the beginning of the measurement period. Miscellaneous Plan
Pension contributions subsequent to measurement date3,811,227 $ - $ Differences between Expected and Actual Experiences249,000 -
Net difference between projected and actual earnings on pension plan investments3,879,5377,939,764 $ - $
Safety Plan
Pension contributions subsequent to measurement date9,014,264 $ - $ Changes of Assumptions2,453,246Differences between Expected and Actual Experiences5,083,926 (244,587)
Net difference between projected and actual earnings on pension plan investments8,464,42025,015,856 $ (244,587) $
Total Deferred Outflows and Inflows of resources32,955,620 $ (244,587) $
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:
Deferred Outflows/(Inflows) of Resources
Measurement Period
Ended June Miscellaneous Safety Total Plans
2025675,196 $ 5,803,836 $ 6,479,032 $ 20265,212,234 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 $
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-as you go, 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 pay as you go basis, GASB 75 requires the use of a discount rate equal to a 20 year 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:
Inactive members currently receiving benefits260 Inactive members entitled to but not yet receiving benefits260 Active members398
Total918
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.
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:
Actuarial Cost Method Entry Age Normal Actuarial Assumptions
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.
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.
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:
Total OPEBPlan FiduciaryNet OPEB LiabilityNet PositionLiability/(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 cost508,056 - 508,056
Interest on total OPEB liability1,233,822 - 1,233,822
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
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:
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:
Deferred OutflowsDeferred Inflows of Resourcesof Resources
Contributions subsequent to the measurement date *1,238,704 $ - $
Changes of assumptions654,987 930,775
Differences between expected and actual experience2,543,902 366,988
Net difference between projected and actual earnings on OPEB plan investments88,476Total4,526,069 $ 1,297,763 $
* 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:
Deferred Outflows/(Inflows) Fiscal year ended June 30,of Resources 2026171,966 $
Total1,989,602 $
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.
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.
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:
Business-Type Activities
notes and finance
Unamortized premiums(6,598,107)
payable(1,001,224)
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.
CITY OF DOWNEY, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 21: RESTATEMENTS (CONTINUED)
June 30, 2024Changes in As PreviouslyErrorAccountingJune 30, 2024 ReportedCorrectionPrincipleAs Restated Government-wide Governmental activities147,419,453 $
Governmental funds
Grant Fund(2,408,610) - -(2,408,610) COVID-19 Grants59,437,812 - -59,437,812 Nonmajor funds120,499,716 - -120,499,716
Total governmental funds240,999,432 $ 323,998 $$241,323,430 $
Proprietary funds
Major funds
$
56,132,517 $ Golf17,056,878 - -17,056,878 Sewer and Stormwater Drain31,699,227 - 67,08731,766,314 Internal Service Funds7,554,408 - 4,491,066 12,045,474
Total proprietary funds112,400,467 $ - $ 4,600,716 $ 117,001,183 $
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.
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
BalanceBalanceDue Within June 30, 2024AdditionDeletionJune 30, 2025One Year
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:
Year Ending June 30,PrincipalInterestTotal
and the interest accrued Cash and investments pooled with the City1,403,302 $ Cash and investments with fiscal
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
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.
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
PLAN FIDUCIARY NET POSITION
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
BenefitChanges :Thefiguresabovegenerallyincludeanyliabilityimpactthatmayhaveresultedfromvoluntarybenefitchangesthatoccurredonor beforetheMeasurementDate.However,offersofTwoYearsAdditionalServiceCredit(a.k.a.GoldenHandshakes)thatoccurredaftertheValuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
ChangesofAssumptions :Therewerenoassumptionchangesin2023or2024.EffectivewiththeJune30,2021,valuationdate(June30,2022, measurementdate),theaccountingdiscountratewasreducedfrom7.15%to6.90%.Indeterminingthelong-termexpectedrateofreturn,CalPERS tookintoaccountlong-termmarketreturnexpectationsaswellastheexpectedpensionfundcashflows.Inaddition,demographicassumptionsandthe priceinflationassumptionwerechangedinaccordancewiththe2021CalPERSExperienceStudyandReviewofActuarialAssumptions.The accountingdiscountratewas7.15%formeasurementdatesJune30,2017,throughJune30,2021,and7.65%formeasurementdatesJune30,2015, through June 30, 2016.
(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)-- -
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
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
BenefitChanges :Thefiguresabovegenerallyincludeanyliabilityimpactthatmayhaveresultedfromvoluntarybenefitchangesthatoccurredonor beforetheMeasurementDate.However,offersofTwoYearsAdditionalServiceCredit(a.k.a.GoldenHandshakes)thatoccurredaftertheValuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
ChangesofAssumptions :Therewerenoassumptionchangesin2023or2024.EffectivewiththeJune30,2021,valuationdate(June30,2022, measurementdate),theaccountingdiscountratewasreducedfrom7.15%to6.90%.Indeterminingthelong-termexpectedrateofreturn,CalPERS tookintoaccountlong-termmarketreturnexpectationsaswellastheexpectedpensionfundcashflows.Inaddition,demographicassumptionsandthe priceinflationassumptionwerechangedinaccordancewiththe2021CalPERSExperienceStudyandReviewofActuarialAssumptions.The accountingdiscountratewas7.15%formeasurementdatesJune30,2017,throughJune30,2021,and7.65%formeasurementdatesJune30,2015, through June 30, 2016.
CITY OF DOWNEY, CALIFORNIA
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years 1
Covered/ Contribution as a Fiscal YearActuariallyActualContributionCovered-% of Covered/ EndingDeterminedEmployerDeficiencyEmployee Covered Employee June 30,ContributionContributions(Excess)PayrollPayroll 20253,811,227
Miscellaneous Agent, Multiple-Employer Pension Plan
Safety Agent, Multiple-Employer Pension Plan
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
6.80% Net of Pension Plan Investment and Administrative Expenses; includes Inflation
The probabilities of retirement are based on the 2021 CalPERS Experience Study.
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.
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
PLAN FIDUCIARY NET POSITION
Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios:
Benefit Changes : None
Changes of Assumptions : None
1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only eight years are shown.
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years 1
Covered/ Contribution as a Fiscal YearActuariallyActualContributionCovered-% of Covered/ EndingDeterminedEmployerDeficiencyEmployee Covered Employee June 30,ContributionContributions(Excess)PayrollPayroll
Agent-Multiple Employer OPEB Plan
(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.
Notes to Schedule: None.
*ActuarialmethodsandassumptionsusedtosettheactuariallydeterminedcontributionforFiscalYear2024werefromtheJune30,2023 actuarial valuation.
Methods and assumptions used to determine contribution rates:
9.0% in 2024 fluctuating down to 3.9% by 2075
net of plan investment expenses and including inflation 50 to 75
2021 CalPERS Experience study; Improvement using MacLeod Watts Scale 2022.
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
REVENUES
EXPENDITURES
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
REVENUES
EXPENDITURES
4,345,416
4,586,379 $
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
REVENUES
EXPENDITURES
1,719,409 $ Fund balances (deficit)-beginning (2,408,610) Fund balances (deficit)-ending(3,443,746) $
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:
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.
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.
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.
CITY OF DOWNEY, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025 ASSETS
Revenue Funds
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)
Total fund balances (deficits)
Total liabilities, deferred inflows of resources, and fund balances (deficits)
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
Total fund balances (deficits)
Total liabilities, deferred inflows of resources, and fund balances (deficits)
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)
1,053,940 7974192,117,088
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)
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
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources, and fund balances (deficits)
2,190,660
2,190,660
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)
Total fund balances (deficits)
Total liabilities, deferred inflows of resources, and fund balances (deficits)
1,004,696
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
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 $
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
FINANCING SOURCES (USES)
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds For the Year Ended June 30, 2025
Special Revenue Funds
Hazardous Material CATV Public Access Air Quality Grants
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)
259,019
466,474
(1,429,533)
2,646,160
2,646,160
2211,216,627
Net change in fund balances Fund balances (deficit)-beginning Fund balances (deficit)-ending (Continued)
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds For the Year Ended June 30, 2025
Special Revenue Funds
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
6,396,611
7,729,859 $
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds For the Year Ended June 30, 2025
Revenue Funds
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
3,108,720 $
173,427,032
6,641,352
CITY OF DOWNEY, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds For the Year Ended June 30, 2025
Revenue Funds Measure WSewer and Storm Drain Asset ForfeitureState Transit Measure M Art in Public Places
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
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
(2,418,432) (2,413,196)
5,667,710
13,446,244 2,190,660 4,390,981 $ 1,363,577 $ 10,988,978 $ 2,190,660 $
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
(2,567,362)
-3,640,555 2,134,280
$$17,725 $ 589,918 $
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 $
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
REVENUES
EXPENDITURES
OTHER FINANCING SOURCES (USES)
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
REVENUES
Fund balances-beginning 7,302 Fund balances (deficit)-ending(140,602) $
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
REVENUES
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual HOME
For the Year Ended June 30, 2025
REVENUES
EXPENDITURES
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
EXPENDITURES
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
REVENUES
1,299,258
balances-ending 1,395,899 $
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
REVENUES
EXPENDITURES
OTHER FINANCING SOURCES (USES)
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Grants
For the Year Ended June 30, 2025
Fund balances (deficit)-beginning (1,073,629) Fund balances-ending 142,998 $
CITY OF DOWNEY, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual CDBG
For the Year Ended June 30, 2025
REVENUES
EXPENDITURES
Fund balances-beginning 1,345,383 Fund balances-ending 1,359,514 $
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
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
REVENUES
EXPENDITURES
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 $
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
REVENUES
OTHER FINANCING SOURCES (USES)
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
REVENUES
EXPENDITURES
OTHER FINANCING SOURCES (USES)
2,040,659
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
EXPENDITURES
OTHER FINANCING SOURCES (USES)
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
REVENUES
EXPENDITURES
(1,428,296)
(981,264) $
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
REVENUES
EXPENDITURES
OTHER FINANCING SOURCES (USES)
2,714,115
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
EXPENDITURES
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
REVENUES
6,129,133
balances-ending 7,595,575 $
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
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
REVENUES
EXPENDITURES
OTHER FINANCING SOURCES (USES)
balances-beginning
(1,369,140) $
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
REVENUES
EXPENDITURES
OTHER FINANCING SOURCES (USES)
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
REVENUES
EXPENDITURES
OTHER FINANCING SOURCES (USES)
Total other financing sources (uses)(168,834)
Fund balances-beginning 13,446,244
Fund balances-ending 10,988,978 $
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
REVENUES
EXPENDITURES
Fund balances-beginning 2,190,660 Fund balances-ending 2,190,660 $
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
REVENUES
EXPENDITURES
(7,635,513) Excess (deficiency) of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES) Transfers
balances-beginning 312,816 Fund balances-ending 597,433 $
(7,531,447)
(299,936)
(7,831,383) $
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
REVENUES
EXPENDITURES
OTHER FINANCING SOURCES (USES)
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
REVENUES
EXPENDITURES
3,640,555 Fund balances-ending 17,725 $
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
REVENUES
EXPENDITURES
OTHER FINANCING SOURCES (USES)
balances-beginning 2,134,280
