Downey council directs staff to begin Prop. 218 process after water-rate presentation citing PFAS and infrastructure needs

Downey City Council directed staff to begin the Proposition 218 process and hold community outreach after a staff presentation on the city’s water system, long-term capital needs and required PFAS compliance.

Director of Utilities Baumgartner told the council the city serves about "20,000 customers" through 258 miles of pipe and operates an enterprise water fund; he said a PFAS treatment system must be operational by April 2031 and estimated the treatment program at about $125,000,000. Baumgartner and staff explained that revenues have declined while pump-taxes and operating costs have risen; the staff study recommended a package that would add "an additional $14.80 per month" to the typical residential bill while keeping Downey among the lowest rates in the region.

Staff outlined funding options and grant work: a $1,000,000 EPA grant, a reported $25,000,000 principal-forgiveness award, an $8,000,000 FEMA/Cal OES hazard-mitigation grant for backup power generation, and $50,000,000 in PFAS settlement funds. Baumgartner said staff is pursuing State Revolving Fund financing, which could offer lower interest and favorable construction-payback terms.

Council agreed on the need for an outreach campaign and information sessions; staff scheduled community meetings for Nov. 6 and Nov. 10 and will return Nov. 18 to consider initiating Proposition 218 proceedings and notice timelines. The council voted unanimously to approve staff’s recommendation to move forward with outreach and begin the Prop. 218 process. Notices to property owners are expected to be postmarked by Nov. 27, with a public hearing slated for Jan. 12, 2026, under the timetable described by staff.

What’s next: Staff will hold community outreach sessions, finalize the water-rate analysis and return Nov. 18 with a recommendation to initiate the Prop. 218 process and mailing of notices.