Fiscal Year Ended June 30, 2025
Welcome A Message from the Interim Assistant Finance Director
To the Residents of the City of Downey:
Welcome to the City of Downey’s Popular Annual Financial Report (PAFR) for the fiscal year ending June 30, 2025. This report is designed to provide an overview of the City’s financial position in a clear and easy-to-understand format, along with a high-level look at where City revenues come from and how those resources are spent
The information presented in this PAFR is derived from the City’s audited Annual Comprehensive Financial Report (ACFR), which is prepared in accordance with Generally Accepted Accounting Principles (GAAP) GAAP represents the authoritative standards and commonly accepted practices for recording and reporting financial information. Readers interested in reviewing the City’s audited, full-disclosure, GAAP-based financial statements may refer to the ACFR, which is available on the City’s website at wwwdowneycaorg
It is important to note that this PAFR is unaudited and presented on a non-GAAP basis. As a result, the financial information in this report may differ in format and level of detail from the GAAP-based presentation found in the City’s ACFR
We hope you find this report informative and useful. Additional financial information about the City is available on the City’s website or by contacting the City’s Finance Department
Marlon Ramirez
Questions
For questions concerning the ACFR or PAFR please contact the Finance Department at 562-904-7265
Table of Contents
About the City
About the City
The City of Downey, home to more than 111,000 residents in 12.41 square miles, is a diverse and dynamic community in the heart of Los Angeles County, approximately 15 miles from Downtown Los Angeles, and 5 miles from Orange County
The City prides itself in being a full-service municipal organization with over 800 employees providing an array of services including police, fire protection, emergency medical services, water distribution, library services, and parks and recreational facilities.
Residents in Downey are able to enjoy nationally recognized schools, numerous wellkept parks, and various amenities, including a regional mall, major shopping and business centers, the Downey Theatre, Downey Library and the Columbia Memorial Space Center. Downey is a wonderful community where individuals, families and businesses are proud to live, work, and play.
Nestled along the banks of the San Gabriel River, the City of Downey is situated 12 miles southeast of the Los Angeles Civic Center, only five miles from Orange County, and about 10 miles from the beautiful Pacific coastline in the County of Los Angeles.
Conveniently located near several major freeways, the city is an ideal home base from which to take advantage of the business resources and hundreds of cultural and recreational activities in Southern California
ELECTED OFFICIALS
Hector Sosa
Mayor
Dorothy Pemberton
Mayor Pro Tem
District 3
Horacio Ortiz
Council Member
District 1
Council Member District 2
Mission
Proudly committed to continuously improving the quality of life for the Downey community by providing excellent service in a professional, ethical and responsible manner
Values
Integrity
Commitment
Respect
Teamwork
Engagement
Passion
Claudia M. Frometa
District 4
Mario Trujillo
Council Member
District 5
Excellence
City Council Priorities
Fiscal Responsibility
Economic Vibrancy
Efficiency and Adaptability
Quality of Life, Safety and
Infrastructure
Public Engagement
CITY MANAGEMENT TEAM
Roger Bradley
City Manager
Vaniah De Rojas
Assistant City Manager
John Funk City Attorney
Maria Alicia Duarte City Clerk
Scott Loughner Chief of Police
Anthony Hildebrand Fire Chief
Irma Huitron
Director of Community Development
Matt Baumgardner
Director of Public Works/ City Engineer
James McQueen
Director of Human Resources
Jason Chacon
Director of Parks and Recreation
Benjamin Dickow
Executive Director & President
Columbia Memorial Space Center, Downey City Library
Austin Ramirez
Director of Economic Development
Marlon Ramirez
Interim Assistant Director of Finance
Citizens of Downey
ORGANIZATION CHART
Charter Boards & Commissions
Community Services Commission
Planning Commission
Youth Commission
Library Advisory Board
Personnel Advisory Board
City Council
Five Members
Mayor Rotated Annually Committees
Disability Appeals Board
Keep Downey Beautiful
Public Works Committee
Public Facilities Financing
Corporation
Water Facilities Corporation
City Clerk
Maria Alicia Duarte, CMC
City Manager
Roger Bradley
Police
ScottLoughner PoliceChief
Administration FieldOperations
Detectives
CrossingGuard
HumanResources
JamesMcQueen Director
EmployeeBenefits
EmployeeandLaborRelations RecruitmentandSelection
Fire
AnthonyHildebrand FireChief
Administration Suppression Paramedics Prevention JointCommunications
Parks&Recreation
JasonChacon Director
Parks&Recreation CivicTheatre SocialServices GolfCourse Transit Cemetery
Finance
MarlonRamirez
InterimAssitantFinance Director
Administration Purchasing Accounting RiskManagement Revenue
CommunityDevelopment IrmaHuitron Director
BuildingandSafety CodeEnforcement Planning
City Attorney
John Funk Assistant City Manager
Vaniah De Rojas
ColumbiaMemorialSpace Center&DowneyCityLibrary
BenjaminDickow ExecutiveDirector&President
LibraryDirector
PublicWorks
MattBaumgardner DirectorandCityEngineer
Administration
Engineering
Utilities
GIS
Maintenance Streets
EconomicDevelopment
AustinRamirez Director
EconomicDevelopment
Housing
HomelessnessSolutions
EMPLOYEES
For Fiscal Year 2024/2025 the City of Downey employed 450 Full Time Employees.
City Council
City Council Members
Executive Secretary
City Clerk
City Clerk
Deputy City Clerk
Economic Development
Economic Development
Homelessness Solutions
Housing
Human Resources
Employee Benefits
Employee & Labor Relations
Recruitment & Selection
Public Works
Administration
Engineering
Maintenance
Space Center
Utilities Space Center Operations &
Programing
Police
Administration
Detectives Division
Field Operations Division
City Manager’s Office
City Management
Public Information
Information Technology
Economic Development
City Attorney
City Attorney
Paralegal
Finance
Administration
General Accounting
Revenue
Non Departmental
Community Development
Administration
Building & Safety
Planning
Code Enforcement
Library
Library Services
Fire
Administration
Support Services
Emergency Services
Parks & Recreation
Administration
Cemetery
Facilities & Events
Fee-Supported Programs
Golf Course
Transit
Theatre
20,000
Statement of Net Position
The Statement of Net Position serves as a financial "snapshot" of a City’s overall financial health, functioning much like a personal net worth statement by weighing what the City owns (assets) against what it owes (liabilities). By subtracting the City’s liabilities from its assets, the report calculates the Net Position, indicating the City’s financial health at the end of the fiscal year For the fiscal year ended June 30, the Citywide net position improved by $15,069 Million The assets of the City exceeded its liabilities by $260,998 Million (net position) The five-year history presented below, indicates positive growth for the City’s net position
Position - 5 Year Comparison (In Thousands)
While the Statement of Net Position shows where the City stands at a single moment, the Statement of Activities acts more like an annual "report card" that tracks the City's financial performance over the course of the year by calculating the "net cost" of City services, showing how much City collected revenues were required to cover expenses This is a summarized version of the more detailed statement found in the City’s complete ACFR For fiscal year ended June 30, 2025, the City’s revenues exceeded expenses by $8,491 Million
Statement of Activities - Citywide (in thousands)
*Due to GASB 101, Compensated Absences Implantation
Governmental Activities
Where the Money Comes From
Revenues from governmental activities consist of 76% general revenues, while 24% consist of program revenues and transfers. General revenues from FY24/25 increased by $6 1 million from those of the prior fiscal year mainly because of the increase in revenues from property taxes, retail transactions and use tax, as well as the rise in use of money and property (investment earnings)
Property Taxes:
Property tax increased by $1 8 million or 5 2% over the prior year The growth in property tax revenue for the City is driven in part by increases in median sale prices and the annual inflationary adjustment determined by the County Assessor.
Did you Know?
For every $1 paid in property tax, $0 14 is returned to the City
are shown in the Thousands)
How the Money is Spent
Program activities experienced an increase of $222 thousand or 0 14% from the prior year A total of $2.9 million increase in expenses are in the areas of Public Safety, Community Development and Public Works, while there is a total of $2 7 million decrease in General Government, as well as Community Services and Interest on Long-term Debts, the net effect is the $222 thousand overall increase
$29,678,400
U S Treasury Note
$20,701,242 $157,490,885
of
Investments
Capital Assets, Net of Depreciation
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, primarily due to projects in progress that were capitalized during the year, mainly in the categories of infrastructures and machinery and equipment
Projects in Progress:
Current year additions to Projects in Progress 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 Total capitalizations reached $19 1 million, driven by key projects such as:
$9.9 Million:
(Areas 5 & 7)
by $11 7 million, mainly due to the street and traffic safety improvements
The City updated its investment policy during Fiscal Year 2025 The City’s Investment Policy is required by State code on an annual basis and is done to ensure the local governing body is kept apprised of both changes in State law governing municipal investments as well as the allowable types and limitations on the City Investment activities.
It is the policy of the City of Downey to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City of Downey and conforming to all state and City of Downey’s laws governing the investment of public funds
Leases $2,671,466
What the City Owes
The City’s total long-term liabilities decreased by $26 3 million during the current fiscal year CalPERS pension liability decreased by $8 1 million this fiscal year In addition, the OPEB (Other Post-Employment Benefits) liability decreased by $1 3 Million and Claim and Judgements increased by $1 4 million Additionally, bond principal balances decreased by $11 4 million and compensated absences decreased by $8.8 million. As of June 30, 2025, the City had outstanding longterm debt totaling $225 1 million
Long Term Debt of Bonds, Compensated Absences, Claims and Judgements, (In Millions)
Compensated Absences: $12,310,912
Assigned liability related to unused employee earned vacation and compensatory leave time
Claims and Judgements: $27,887,000
Actuarial estimates of current and potential insurance claims and settlements
Lease and Subscription Based Liabilities: $3,034,877
Lease payments for the right to use various equipment, subscription based software and vehicles
Long-Term Debt (Bonds & Loans): $181,905,654
Bonds issued to finance the construction of certain improvements to City facilities and streets Below is a listing of the City’s current bonds
Measure S- 2017 Lease Revenue Bond: $33,040,000
Bond proceeds financed improvements across four City fire stations and seven parks, alongside renovations to the Downey City Library, the Downey Theatre Plaza, and the Downey Police Station
Sales Tax Revenue Measures M & R: $22,505,000
Measure M & Measure R bond proceeds are dedicated to financing street improvement projects throughout the City
2005 & 2021 Pension Obligation Bond: $113,285,000
Bond proceeds that were 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
City employees working the equivalent of 1,000 hours per fiscal year are eligible to participate in multiple-employer defined benefits plans administered by California Public Employees Retirement System (CalPERS) The City currently offers two plans: the Safety Plan for public safety employees (i e , Police employees) and the Miscellaneous Plan for all other city employees
The largest impact on the City’s long-term financial stability relates to the increase in pension costs form CalPERS Per the most recent CalPERS annual valuation report, the funded status (the percentage of assets available to meet the total projected benefits payments) for the Safety and Miscellaneous Plans was 79 7% and 80%, respectively The total net pension liability as of June 30, 2025, totaled $130.1 million. The net pension liability for each plan as of the last two fiscal year end dates in shown below
Net Pension Liability - Safety vs Misc Plans
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
The City further allocates the total net pension liability by fund (i e , Business-Type funds related to the activities of the water and sewer and Governmental funds related primarily to the City’s General Fund activities). The distribution of the net pension liability by fund type is show below:
Net Pension Liability - Safety vs Misc Plans
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$1,979,690
City Activities: Highlights
The General Fund is the government’s primary operating fund and the most discretionary It accounts for all financial resources of the general government, except those required to be recorded in another fund A five-year history of the fund balance and its designations is below The fund balance of the General Fund at June 30, 2025, was $579 million, a $12 million decrease from 2024 due to the cost of living adjustment (COLA) increases, general liability insurance premiums and other general administrative expenses
Fund Balance - General Fund
Nonspendable:
Inherently non-spendable (e g , receivables and prepaids items)
Restricted: Fund Balance Components
Externally enforceable limitations on use (e g , Investment in Section 115 Trust)
Committed:
Self-imposed limitations on use (e g , Self-Insurance and re-appropriation)
Assigned:
Limitation resulting from intended use (e g , capital assets)
Unassigned:
Residual net resources (e g , discretionary)
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
Sales & Use Tax Highlights
due to $13 8 million sale of Land
The City’s largest revenue source is generated through the City’s Sales & Use Taxes that are levied at the point-of sale. For Fiscal year 2025, the City of Downey’s sales tax rate was 1050% General sales tax receipts were $469 thousand or 124% over the previous year As in the prior year, there is a shift in consumer behavior, people are opting for essential household items over more expensive purchases resulting in moderate increase in sales tax Retail transactions and use tax revenues increased by $15 million or 1149% over the prior year, primarily because of the passage of Measure D, approved by voters in November 2024, with collection beginning in April of 2025 Revenues collected from the retail and use tax (Measures S & D) go to separate funds for transparency and tracking purposes
Sales & Use Tax Collection - 5 year Comparison
$40,000,000
$10,000,000
Fiscal Year 2024-2025 Highlights
Developed the 13 Consecutive Balanced Budget th
12 consecutive year - GFOA and CSMFO Budget Awards th 25 consecutive year the City of Downey has received the award th
Over $10 Million in Grants Secured from various agencies.
Downey Forward - 2030 Strategic Plan - Initiated year one of the 5year Strategic Plan, including the development of a webpage, brochure, and quarterly status updates
Measure D - Provided educational materials to inform the public, resulting in the passage and establishment of a new revenue source for public safety services
Sprouts Opened in December 2024, bringing fresh, healthy food options and enhancing local grocery offerings
Shake Shack & Silverlake Ramen opened on Firestone Blvd
Accela Citizen Portal - Enhanced capabilities for customer electronic submittals of plans, ability to check status online, and online payment submittal
Miles Paved - Since July 2024:
17 Miles of Residential Streets
5 Miles of Arterial Streets
35 Miles of Alley have been paved
Completed CIP Projects - 11 projects completed with a total Investment of $78 Million in City assets, including HVAC improvements at the Barabra J Riley Community and Senior Center, Downey Ave. Alley Beautification, Alleys North of Foster Rd. and Lakewood Blvd, Traffic Signal Upgrades, Civic Center Painting Project
Homelessness Solutions Office - Hired a manager to enhance homeless services and outreach efforts.
Parks & Recreation hosted 34 events last year, engaging thousands and fostering community unity
Regional Task Force - Deployed Fire Department personnel as part of Regional Task Force-2 in response to the wildfires in Los Angeles County
Additional Police Officers and Support Staff - Completed the Police Department Assessment adding 17 total position utilizing Measure D.
Rehabilitation Single-Family Residences - Twenty-one residences are underway, providing support to low- and moderate-income households
City of STEM - Declared the Official Science Festival of Los Angeles County by the County Board of Supervisors
Space Shuttle Inspiration Move - Successfully coordinated the move of the Space Shuttle to its temporary site for restoration
Certificate of Achievement for Excellence in Financial Reporting
When a local government receives this Certificate of Achievement for Excellence in Financial Reporting, it is essentially receiving a "gold star" for how clearly it shares its financial story with the public This award is given by the Government Finance Officers Association (GFOA) and is the highest honor a city can earn for its yearly financial report To win the award, the city must go above and beyond the basic legal requirements to ensure their Annual Comprehensive Financial Report (ACFR) is easy to read, wellorganized, and fully transparent. This award serves as a seal of approval from an outside panel of experts, confirming that local leaders are being open and honest about where your tax dollars are going and the overall financial health of the City.
Location
Location:
Located between 4 Major Freeways: I-710, I-105, I-605, and I-5
Access to LA Metro: C Line and County Bus System
Proximity to LAX: located just 16 miles from the Los Angeles International Airport
Centrally located in Los Angeles County: Approximately 15 miles from Downtown Los Angeles, 16 miles from Long Beach, and 5 miles from Orange County. Close to multiple tourist destinations
City Transportation:
Downey Dial-a-Ride Bus: Seating Capacity 17
Downey Link Bus: Seating Capacity 30
Downey Link Van: Seating Capacity 5
Contact Us!
Phone: (562) 869-7331
Website: www.downeyca.org
DOWNEY,
CA
Address: 11111 Brookshire Ave, Downey, CA 90241
