The City Council agreed to trade $300,000 in Proposition A public transportation funds to West Hollywood in exchange for $150,000 in general revenue monies.
The exchange, which was approved Monday night, reduced Downey's Proposition A fund from $2.1 million to $1.8 million.
Downey was in danger of losing the $300,000, said Lee Powell, director of administrative services. Any funds not used by a city within four years must be returned to the Los Angeles County Transportation Commission.
In a similar exchange in September, Downey received $130,000 from Commerce for $200,000 in Proposition A funds.
Proposition A, a half-cent county sales tax for transit projects, took effect in 1982.
Since then, Downey has received $3.5 million in Proposition A revenue, said Erica Goebel, transportation commission spokesman. Downey has used Proposition A funds primarily to subsidize its transit program for senior citizens and the handicapped.
The county Transportation Commission allows a city to sell its Proposition A funds to other cities for general revenue funds.