DOWNEY – The City Council adopted a $262 million spending plan last week, the city’s sixth consecutive annual balanced budget that avoids tapping into city reserves. 

City officials credited the balanced spending plan with a booming local economy but warned that lean times could be ahead. 

“The unprecedented economic development activity in Downey is what has enabled the City to balance the budget this year,” finance and information technology director Anil Gandhy wrote in a staff report. 

“Proceeds from the Measure S sales tax adopted by Downey voters in 2016 will continue to fund the increase in public safety personnel and to address the park, library, fire station and other public infrastructure improvements as outlined in the ordinance outlined by voters.

“It should also be noted that the United States economy is in a virtually unprecedented ninth year of growth,” Gandhy added. “A recession is not a question of if, but when. The City must be prepared to take additional measures to manage costs and services without sacrificing long-term sustainability.” 

Public safety plays a significant role in Downey’s 2018-19 fiscal budget. This year, Downey added 10 new sworn police officer positions, along with a fire training captain, an ambulance coordinator, and six ambulance operators. 

The city is already midway through a $3.25 million upgrade to its public safety dispatch systems, with $1.25 million already committed and an additional $2 million expected to be spent next year. 

In a report to the City Council, city manager Gilbert Livas revealed the city has “entered the last stages of negotiations of 5 new acres of park land” on the south Rancho Los Amigos campus, “a tremendous achievement which, when completed, will add 4% more park acreage in this completely built-out city…” 

According to Livas’ report, Downey has seen a 45.3% increase in sales tax revenue over the last five years. The city currently has $30.3 million in reserves.