Just days before the city's accelerated budget process kicks off on April 17, and four months after officially becoming South Pasadena's permanent finance director, John Downs announced on May 2 He informed the city that he would step down from his high-pressure position.
Deputy Treasurer Luis Fraustro confirmed Mr. Down's retirement plans, adding that the city “will be sad to see him go” and expresses his “deep gratitude” to him. The city is “actively considering options and preparing a comprehensive plan to ensure continuity of operations within the Treasury Department. We are committed to a smooth transition.”
Downs' resignation is the latest for a shaky Treasury, which must find a seventh interim or permanent director within the next five years. The appointments follow the departure of two people from the nine-member department: Deputy Finance Director Hsiulee Tran and Finance Director Albert Trinh.
The hemorrhage of city employees also extends to the office of City Administrator Armin.picture In Chaparyan, the position of longtime mayoral assistant Tamara Binns has remained vacant since her sudden resignation in February, and Deputy City Manager Domenica Megerdikian also left this week on maternity leave.
In total, 22 of the city's 173 full-time positions are currently vacant, nine in the police department and seven in the public works department. Full-time recruitment is underway for 25 people, most of whom will be police officers or cadets.
Mr. Downs appointed as Interim Treasurer Completed in February 2023, City Manager Armin says the project has “been in full swing”picture Chaparian said at the time. He told the City Council he would focus on developing staff and building organizational knowledge so they could do “succession planning.”
It's not surprising that Downs, who has a 27-year career in public and private finance, has retirement plans, but South Pasadena Finance Commission Chairman Peter Giulioni said it's not the right time for the city to lose its finance director. . Mr Downs' departure “will put us in a difficult position”.
Interactions between Downs and some members The City Council and Finance Committee have featured tricky exchanges in recent months.especially after the City Contractor presentation. The General Fund deficit is expected to reach $3.7 million. the controversy over whether a “structural deficit” is built into the city's budget for the next five years, the failure to record a particularly volatile recent Finance Committee meeting, the submission of incorrect information to the Finance Committee; These are complaints that the Ministry of Finance has consistently ignored. Comply with city-specific policies and reporting deadlines.
Mr Giulioni said he had made “all kinds of improvements” since coming to Downs “at a difficult time”. “He has picked up the mantle,” he said, working on last year's “extremely difficult” mid-year budget update, implementing a zero-based budgeting approach and providing the city with millions of dollars in refunds it otherwise wouldn't have received. contributed to securing the He did other things like go back and sort out the residual confusion caused by past City Managers and Treasurers. He kept us updated. ”
Councilwoman Janet Brown, who campaigned in part on the need to bring more stability to the Treasury Department, said Downs' tenure with the city was “difficult to assess.” [and] are under great stress. ” Brown, who had previously lamented the department's financial reporting practices, said he had recently had a “good meeting” with Chaparian and Downs and “created a spreadsheet to ultimately submit financial statements,” as well as recent financial reporting. He apologized for providing incorrect information to the committee. “It speaks volumes about character.”
In addition to the budget kickoff, the City Council on Wednesday Please review the City's timely request with MV Cheng & Associates. MV Cheng & Associates signed him a nine-month, $115,200 contract in July 2022 to provide temporary staff to the finance department. City Manager Chaparian is seeking council approval for a third $90,000 extension to that agreement, bringing the total to date to $434,000. “Due to recent changes in key staff, the department needs assistance in completing its fiscal year-end accounting and audit while staff begins preparing next year's budget,” Downs wrote in the agenda item report. Ta.
It is unclear whether the decision to extend MV Cheng's contract was made before the City learned that Downs was considering leaving.
Wednesday's agenda also includes a request for $3,500 to train finance staff on predictive models created for the city by NHA Advisors under a previous $29,500 contract. The extent to which finance staff will be required to use this model in budgeting has been a major concern for finance committee members, who believe it will impose more financial discipline on city staff.
Learn more about the City of South Pasadena's financial issues
click here