Downey City Council to consider changes to reimbursement policy

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DOWNEY — The Downey City Council on Tuesday is scheduled to discuss potential changes to its long-standing reimbursement policy for councilmembers, including whether current monthly allowances remain adequate.

According to a staff report prepared for the March 24 meeting, the council will review its existing reimbursement structure and provide direction on possible updates.

Under the City Charter, councilmembers do not receive a salary but are reimbursed for expenses incurred while performing official duties. Those reimbursements include both itemized costs such as travel and conferences, as well as a monthly allowance intended to cover routine out-of-pocket expenses.

The current framework dates back decades. A 1987 ordinance established monthly reimbursements for basic expenses such as mileage, phone use, meals and other incidental costs, with automatic annual adjustments tied to inflation. Subsequent updates in 2006 increased those amounts and formalized a travel and expense policy in response to state law.

Today, Downey provides a monthly reimbursement of approximately $1,270 for the mayor and $1,078 for councilmembers, adjusted annually by the Consumer Price Index. In addition, a separate travel policy allows reimbursement for expenses such as airfare, lodging, meals and conference registration when conducting city business.

City officials say the upcoming discussion is intended to evaluate whether the current reimbursement structure still reflects the cost of serving on the council.

“The reimbursement process provides a mechanism to ensure that using personal income is not necessary to serve,” the report states, noting that the council has not formally reevaluated the base reimbursement amounts since 2006.

The staff report also includes a comparison with nearby cities. While some cities provide salaries or stipends along with separate allowances for vehicles or technology, Downey remains structured strictly as a reimbursement-based system due to its charter.

For example, cities such as Lakewood and Pico Rivera provide monthly stipends along with auto or phone allowances, while others like Bellflower and Cerritos rely primarily on salaries. Downey, by contrast, reports no salary but a higher reimbursement amount intended to cover council-related costs.

Any change to council compensation would require voter approval because it involves the City Charter. However, adjustments to the monthly reimbursement amounts could be made by ordinance at a future meeting.

Staff emphasized that Tuesday’s item is for discussion only, with no immediate fiscal impact. Any future changes directed by the council could affect city expenditures depending on the scope of revisions.

The discussion comes amid broader statewide conversations about local elected officials’ compensation. A 2023 state law increased allowable pay caps for councilmembers in general law cities, though Downey, as a charter city, operates under its own rules.