The Downey City Council has voted to allow its Redevelopment Agency to sell $5 million in bonds. The proceeds will be used to replenish the city's general fund, which pays for salaries and various city services, said Lee Powell, assistant city manager.
The city has loaned the cash-poor Redevelopment Agency $6.4 million over the past 12 years for redevelopment projects. But revenue from the city's redevelopment zones has increased slowly over the years. The Redevelopment Agency now brings in $1,174,303 in annual property taxes, enough to easily cover the anticipated bond payment of $431,650 a year, Powell said.