IT TAKES JUGGLING, BUT DOWNEY BUDGET WON’T CUT PROGRAMS OR SERVICES
By Eric Pierce
After a public hearing on June 28, the Downey City Council is expected to approve a $143.6 million budget that will plug a $1.7-million deficit by using the city’s reserves, but will not reduce any city programs or services, although 34 budgeted and/or unoccupied jobs will be permanently eliminated.
The city’s reserves are projected at at $28.7 million after the next fiscal year.
Downey’s projected budget took shape last week during a four-hour budget session, during which council members quizzed departments about their efforts to reduce costs and increase efficiency.
Overall, administrators sounded cautiously optimistic about the city’s finances going forward. Sales tax revenues are expected to increase 19.8 percent this coming fiscal year, attributable at least partly to a “change in spending habits.” A scheduled water rate increase later this year is expected to boost water utility funds 31.2 pecent.
Most other revenue sources, however, are forecasted to decrease. City officials estimate a 5.3 percent drop in property tax revenue, and slight dips in licenses and permits, interest and rents, property transfer taxes, and golf course revenues.
The city’s share of federal Community Development Block Grants, used primarily in Downey to support local non-profits, is estimated to decline 16.4 percent.
“It’s very tight this year … but our department heads have been extremely creative to keep our programs in these dire fiscal times,” said Caton, who will retire in December after 22 years as city manager.
