Members of the public may address the City Council on any item shown on the agenda or matter of the Council’s authority after completion of “Request to Address the Council Form” available in the lobby of the Council Chambers or in the City Clerk’s office. This form must be completed 15 minutes prior to the scheduled meeting time. Pursuant to Section 54957.5 of the California Government Code, Any writings (Except for those writings which are exempt from disclosure) which are distributed to all or a majority of the members of the City Council are available for public inspection in the lobby of the City Council Chambers and in the office of the City Clerk during regular business hours.
COMPTON CITY COUNCIL
AGENDA
06/17/2025
5:30 PM – PUBLIC MEETING
5:45 PM – PUBLIC HEARING
205 S. WILLOWBROOK AVE
COMPTON, CA 90220
HEARING(S)
PUBLIC HEARING:
WATER BILL DELINQUENCIES TO LA COUNTY TAX ROLL
OPENING
ROLL CALL
MOMENT OF SILENCE
PLEDGE OF ALLEGIANCE
PRESENTATIONS
1. A REQUEST TO RECEIVE AND FILE THE FISCAL YEAR 2022-2023 AUDITED FINANCIAL STATEMENTS, THE FISCAL YEAR 2022-2023 SINGLE AUDIT REPORT, AND THE FISCAL YEAR 2022-2023 UNAUDITED MANAGEMENT’S
DISCUSSION AND ANALYSIS OF THE CITY OF COMPTON
-2- City Council Agenda
6/17/2025 5:30 PM
PUBLIC COMMENTS ON AGENDA ITEMS AND NON-AGENDA MATTERS
CONSENT AGENDA
Consent items are routine and expected to be non-controversial. They will be acted upon by the Council at one time without discussion unless a Council Member requests an item be removed or discussed..
APPROVAL OF MINUTES
2. APRIL 1, 2025
CITY MANAGER
3. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ENTER INTO INVESTIGATIVE, LEGAL,
AND PROFESSIONAL SERVICE AGREEMENTS WITH LIEBERT CASSIDY
WHITMORE AND JL GROUP, LLC, FOR PROVISION OF ADMINISTRATIVE INVESTIGATION SERVICES ON AN “AS-NEEDED” BASIS FOR FISCAL YEARS 2024-2025 AND 2025-2026
REGULAR AGENDA
NEW BUSINESS
4. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON ADOPTING THE BUDGET FOR FISCAL YEAR 2025-2026
5. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH WEAVER AND TIDWELL LLP ($164,550) FOR
PROJECT MANAGEMENT SERVICES FOR THE IMPLEMENTATIN FO THE
CITY'S ENTERPRISE RESOURCE PLANNING SOFTWARE, AND TO ISSUE A
PURCHASE ORDER IN THE AMOUNT OF ONE-HUNDRED SIXTY-FOUR
THOUSAND FIVE-HUNDRED FIFTY DOLLARS ($164,550) TO WEAVER AND TIDWELL, LLP.
6. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO AMEND THE CONTROLLER'S
DEPARTMENT FY2024-2025 BUDGET, AND TO ISSUE AN ADDITONAL
PURCHASE ORDER OF TWENTY-THREE THOUSAND FOUR-HUNDRED
SIXTEEN DOLLARS ($23,416) FOR EADIE AND PAYNE FOR PROVIDING
NEEDED SERVICES BEYOND THE TERMS OF THE AGREEMENT IN
ASSISTING WITH THE PREPARATION OF THE FY 2022-2023 AUDIT.
7. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO AMEND THE CONTROLLER'S
DEPARTMENT BUDGET, AND TO ISSUE AN ADDITIONAL PURCHASE ORDER
OF EIGHTEEN THOUSAND FIVE-HUNDRED TWENTY-TWO DOLLARS
-3- City Council Agenda
6/17/2025 5:30 PM
($18,522) FOR EADIE AND PAYNE FOR SERVICES BEYOND THE TERMS OF THE AGREEMENT IN ASSISTING WITH THE PREPARATION OF THE FY2023- 2024 AUDIT.
COUNCIL COMMENTS
ADJOURNMENT
NEXT REGULAR MEETING: 6/24/2025 5:30 PM
Visit our website at http://www.comptoncity.org
City of Compton
Lien Process
June 17, 2025
CONFIDENTIAL
Republic Services Team
STRUCTURE
2 Business Unit – Gardena
•Dawn Benton– Manager Municipal Sales
•Ricky Chowdhury – Municipal Supervisor
Area – Southwest
•Mayra Lugo – A/R Center Supervisor
CONFIDENTIAL
Community: Beautification Initiative
Compost and Mulch contributions at Compton High
School’s exterior, including parking lots, walkways, and sports fields.
Republic Services Updates
Fleet: Refuse Trucks
2025: 3 New Vehicles Added to Compton Fleet
2026: Additional Electric Vehicles Pending Deployment
Service: Missed Pickups per 10,000 Customers
CONFIDENTIAL
Meeting
Agenda
•Introductions
•Current Customer Lien Status
•Lien Event Timing Review
AGENDA
4 CONFIDENTIAL
Current lien eligible status and collection efforts
Current scope of lien eligible customers (Over 180 days past due balance is >$25) •Lien Eligible = 144 accounts or $316,974.68
Collection efforts status
•We have sent 720 collection letters to past due customers •We have sent 2,448 automated calls to past due customers •Our collection centers have made manual touchpoints (phone calls, emails, etc.) •Parcel data
•Full data validation performed on customer accounts and addresses Republic Services Action Items
CONFIDENTIAL
Compton Lien Process
Step Action Description Recipient Days Past
Due
1 Mail Past Due Notification Notice Billing 8
2 Dialer Collections Call 1 Billing 10
3 Dialer Collection Call 2 Billing 15
4 Dialer Collection Call 3 Billing 20
5 Mail Past Due Notification Notice Billing 20
6 Dialer Collection Call 4 Billing 25
7 Dialer Collection Call 5 Billing 30
8 Dialer Collection Call 6 Billing 35
9 Dialer Collection Call 7 Billing 40
10 Dialer Collection Call 8 Billing 45
11 Dialer Collection Call 9 Billing 50
12 Mail Final Demand Notice Billing 50
13 Dialer Collection call 10 Billing 60
14 Dialer Collection call 11 Billing 70
15 Dialer Collection call 12 Billing 75
16 Dialer Collection call 13 Billing 80
17 Dialer Collection call 14 Billing 85
18 Mail Pre-Lien Notice Property Owner 90
19 Dialer Collection call 15 Billing 90
20 Dialer Collection call 16 Billing 95
21 Mail Public Hearing Notice Property Owner 120
22 Dialer Final Demand Call Billing 115
•Customers have at least 22 touchpoints
from Republic Services prior to sending
delinquent accounts to lien
•Communications include:
•Invoice number and due date detail
•Telephone number to call with
questions (Republic)
•All payment channels
•Return-address envelope (for
letters)
•Customer-facing teams are trained in
Compton specific collection policies and
statutes
Standard Collection Process
Thank you
June 17, 2025
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: CITY CONTROLLER
SUBJECT: A REQUEST TO RECEIVE AND FILE THE FISCAL YEAR 2022-2023 AUDITED FINANCIAL STATEMENTS, THE FISCAL YEAR 2022-2023 SINGLE AUDIT REPORT, AND THE FISCAL YEAR 2022-2023 UNAUDITED MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE CITY OF COMPTON
SUMMARY
Adoption of this Resolution will formally acknowledge the receipt and filing of the Fiscal Year 2022-2023 Single Audit Report and the issuance of related financial statements.
BACKGROUND
Eadie & Payne LLP has audited the Fiscal Year 2022-2023 financial statements for the City of Compton as is required by the City to remain compliant with bond contractual requirements and granting agency requirements.
The audit consisted of the examination of the financial statements of the governmental activities, business related activities, use of each major fund, and the aggregate remaining fund information. The audit report includes the comprised related notes to the financial statements for the City of Compton as of June 30, 2023. The auditor performed tests of the City of Compton’s compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements. The audit additionally included services to report on supplementary information other than the Required Supplementary Information (RSI) that accompanies City of Compton’s financial statements. Services, such as comparing and reconciling accounting information and other records used to prepare the financial statements in accordance with the auditing standards generally accepted in the United States of America, were provided. Upon completion of the audit, Eadie & Payne LLP provided a written report and an opinion of the financial statements.
The objective of their audit was to provide an opinion as to whether the City’s financial statements are appropriately and accurately presented in conformity with U.S. Generally Accepted Accounting Principles (GAAP). The objective also includes reporting on the precedence of internal controls over financial reporting in accordance to the laws and regulations set by the Government Auditing Standards.
The City has prepared its Management’s Discussion and Analysis for Fiscal Year 2022- 2023 (the “MD&A”) to accompany the audited financial statements; however, the MD&A was not prepared and submitted to Eadie & Payne LLP in time to be included in its review of the City’s financial statements. The audit letter submitted by Eadie & Payne LLP states
1.1.1.1.1. Staff Report – Resolution to Receive and File the Fiscal Year 2022-2023 Audit June 17, 2025
2 that, while the missing MD&A is required by the Governmental Accounting Standards Board as an essential part of the financial reporting for placing the City’s basic financial statements in an appropriate operational, economic, or historical context, the opinion provided by Eadie & Payne LLP on the City’s basic financial statements is not affected by the missing information.
STATEMENT OF THE ISSUE
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatements, the auditor performed tests on the City of Compton’s compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements.
The Uniform Guidance requires that the auditor plan and perform the audit to obtain reasonable assurance about whether the City has complied with federal statutes, regulations, and the terms and conditions of federal awards applicable to major programs.
The purpose of these procedures was to express an opinion of the City of Compton’s compliance with requirements applicable to each of its major programs in their report on compliance issued pursuant to the Uniform Guidance.
Financial Highlights:
The assets and the deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the Fiscal Year 2022- 2023 by approximately $79.1 million (net position), which is approximately $60.3 million higher than the previous year's net position. This is due primarily to decreases in expenses of Governmental Activities of $22.5 million, Business-Type activity expense decreases of $2.1 million, increases in property taxes of $4.7 million, increases in investment earnings of $5.3 million, and increases in utility user taxes of $2.7 million. The unrestricted portion of net position as of June 30, 2023 increased by approximately $37.0 million to ($219.0) million accumulating more resources that may be used to meet the City’s ongoing obligations to citizens and creditors.
As of the close of the current fiscal year, the City’s Governmental Funds (e.g.
General Fund, Capital Projects Funds, Special Revenue Funds, etc.) reported combined fund balances of approximately $218.7 million, an increase of approximately $28.2 million from the prior year. Of this amount, $197.7 million, or approximately 90.4%, of total fund balances are reported as either “Nonspendable” ($1.7 million), "Assigned" ($142 thousand), “Committed” ($552 thousand), or “Restricted” ($195.3 million) fund balances. The increase in the City's governmental funds combined fund balances reported was primarily driven by increases in tax revenue (by approximately $6.7 million). The City’s net capital assets (land, buildings, equipment, infrastructure, less accumulated depreciation) were at $209.9 million as of June 30, 2023, increasing Staff Report – Resolution to Receive and File the Fiscal Year 2022-2023 Audit June 17, 2025
3 by $1.4 million over the previous year due mainly to an increase in infrastructure capital assets.
The City’s net long-term liabilities increased by $10.6 million to $416.2 million, primarily as a result of the increase in the Pension liability of approximately $51.4 million, combined with a decrease in Other Post Employment Benefits Payable (OPEB) liability of $35.2 million as well as a decrease in long term Bonds and notes payable of approximately $5.5 million, for Fiscal Year 2022-2023. The City’s deferred inflow on resources decreased by $25.5 million to $64.5 million, primarily as a result of a combination of a decrease of Pension deferred inflows of approximately $46.5 million in net differences between projected and actual earnings on pension plan investments, as well as an increase in OPEB deferred inflows of $19.6 million from the difference between the expected and actual experience of the OPEB plan, as well as from changes in assumptions in the OPEB plan. Additionally, the City’s deferred outflows increased by $13.3 million, or 22.8% due to a combination of an increase of $25.9 million from Net Difference between Projected and Actual Earnings on Pension Plan Investments and pension plan changes in assumptions, with a decrease of $12.6 million from OPEB plan changes of assumptions.
During FY 2022-2023, Sales Taxes decreased by approximately $6.8 million or
19.5%. The City saw a decrease in Sales Tax due to a decrease in spending. Utility User Taxes increased by approximately $2.7 million, or 22.2%, during FY 2022-2023, as a result of increased commercial and industrial activity within the City.
Investment earnings increased by $5.6 million or 441.1% during Fiscal Year 2022- 2023, primarily due to an increase in market interest rates.
Audit Findings:
In addition to the unqualified opinion on the audited financial statements, the City received an updated list of auditor findings. Auditor findings are deficiencies found by the auditors while conducting the audit in areas of internal control, accounting errors, and non- compliance with grant, legal, or contractual requirements.
Corrective Action Plan:
The City Controller and the City Manager have provided responses as well as a corrective action plan to the auditor to address the findings. In order for the City to overcome these findings the City Controller’s Department is currently working with the City Manager’s Department to do the following:
Implement new policies and procedures,
Fiscal Sustainability Plan implementation
Fee Study implementation
Staff Report – Resolution to Receive and File the Fiscal Year 2022-2023 Audit June 17, 2025
4 Implement new financial accounting software and to program reports where needed
Provide continued training to staff
Implementing the corrective action plan provided to the auditors, as well as the steps described above will remove audit findings so that the City can operate more efficiently and effectively, obtain more opportunities for outside financing, and become a model for other cities to follow. The audit findings signify that some existing City practices allow for the opportunity for the misappropriation of City assets, as well as the possibility of losing granting opportunities.
FISCAL IMPACT
The impact of completing the Fiscal Year 2022-2023 Audit and releasing the Fiscal Year 2022-2023 Audited Financial Statements as well as the FY 2023 Single Audit Report by the City’s auditors allows the City to remain in compliance with grant and contractual requirements. Adoption will also greatly assist with removing the City from the State of California Auditor Department’s list of cities with the greatest fiscal risk in the State of California.
RECOMMENDATION
It is the recommendation of staff that the City Council receive and file the attached set of Audited Financial Statements for Fiscal Year 2022-2023, the Single Audit Report for Fiscal Year 2022-2023, and the MD&A for Fiscal Year 2022-2023.
SHARON RAHBAN NAVIZADEH
CITY CONTROLLER
APPROVED FOR FORWARDING:
Willie A. Hopkins Jr.
RESOLUTION NO. _________
A REQUEST TO RECEIVE AND FILE THE FISCAL YEAR 2022-2023 AUDITED FINANCIAL STATEMENTS, THE FISCAL YEAR 2022-2023 SINGLE AUDIT REPORT, AND THE FISCAL YEAR 2022-2023 UNAUDITED
MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE CITY OF
COMPTON
WHEREAS, adoption of this Resolution will formally acknowledge the receipt and filing of the Fiscal Year 2022-2023 Single Audit Report and the issuance of related financial statements; and
WHEREAS, the audit consisted of the examination of the financial statements of the governmental activities, business related activities, use of each major fund, and the aggregate remaining fund information. The audit report includes the comprised related notes to the financial statements for the City of Compton as of June 30, 2023. The auditor performed tests of the City of Compton’s compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements. The audit additionally included services to report on supplementary information other than RSI that accompanies City of Compton’s financial statements. Services, such as comparing and reconciling accounting information and other records used to prepare the financial statements in accordance with the auditing standards generally accepted in the United States of America, were provided. Upon completion of the audit, Eadie & Payne LLP provided a written report and an opinion of the financial statements.
WHEREAS, the objective of the audit was to provide an opinion as to whether the City’s financial statements are appropriately and accurately presented in conformity with U.S. Generally Accepted Accounting Principles (GAAP). The objective also includes reporting on the precedence of internal controls over financial reporting in accordance to the laws and regulations set by the Government Auditing Standards.
WHEREAS, the City has prepared its Management’s Discussion and Analysis for Fiscal Year 2022-2023 (the “MD&A”) to accompany the audited financial statements; however, the MD&A was not prepared and submitted to Eadie & Payne LLP in time to be included in its review of the City’s financial statements. The audit letter submitted by Eadie & Payne LLP states that, while the missing MD&A is required by the Governmental Accounting Standards Board as an essential part of the financial reporting for placing the City’s basic financial statements in an appropriate operational, economic, or historical context, the opinion provided by Eadie & Payne LLP on the City’s basic financial statements is not affected by the missing information.
WHEREAS, an audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, their audit involved judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
WHEREAS, an audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. However, during the audit, the auditor communicated to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, and the Uniform Guidance.
WHEREAS, as part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, the auditor performed tests of City of Compton’s compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements. However, the objective of those procedures was not to provide an opinion on overall compliance and they did not express such an opinion in the City’s report on compliance issued pursuant to Government Auditing Standards.
RESOLUTION NO. _________
2 WHEREAS, the Uniform Guidance requires that the auditor also plan and perform the audit to obtain reasonable assurance about whether the City has complied with federal statutes, regulations, and the terms and conditions of federal awards applicable to major programs. Their procedures consisted of tests of transactions and other applicable procedures described in the OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of City of Compton’s major programs. The purpose of these procedures was to express an opinion on City of Compton’s compliance with requirements applicable to each of its major programs in their report on compliance issued pursuant to the Uniform Guidance.
WHEREAS, the auditors provided an “unqualified” opinion on the financial statements.
WHEREAS, a qualified opinion on the prior financial statements did change to an unqualified opinion in the FY2021-2022 Audit when prior matters were rectified. The City’s Accounting Division performed the accounting research and work necessary to correct these matters.
WHEREAS, in addition to the unqualified opinion on the audited financial statements, the City received an updated list of auditor findings. Auditor findings are deficiencies found by the auditors while conducting the audit in areas of internal control, accounting errors, and non-compliance with grant or contractual requirements.
WHEREAS, the City Controller and the City Manager have provided responses as well as a corrective action plan to the auditor to address the findings. In order for the City to overcome these findings the City Controller’s Department is currently working with the City Manager’s Department to do the following:
Implement new policies and procedures,
Fiscal Sustainability Plan implementation
Fee Study implementation
Implement new financial accounting software and to program reports where needed Provide continued training to staff
WHEREAS, implementing the corrective action plan provided to the auditors, as well as the steps described above will remove audit findings so that the City can operate more efficiently and effectively, obtain more opportunities for outside financing, and become a model for other cities to follow. The audit findings signify that some existing City practices allow for the opportunity for the misappropriation of City assets, as well as the possibility of losing granting opportunities.
WHEREAS, the impact of completing the Fiscal Year 2022-2023 Audit and releasing the Fiscal Year 2022-2023 Audited Financial Statements as well as the Fiscal Year 2022- 2023 Single Audit Report by the City’s auditors allows the City to remain in compliance with grant and contractual requirements. Adoption will also greatly assist with removing the City from the State of California Auditor Department’s list of cities with the greatest fiscal risk in the State of California.
WHEREAS, it is the recommendation of staff that the City Council adopt this Resolution to receive and file the attached set of Audited Financial Statements for Fiscal Year 2022-2023, and the Single Audit Report for Fiscal Year 2022-2023.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Receive and File the Fiscal Year 2022-2023 Audited Financial Statements, Fiscal Year 2022-2023 Single Audit, and the unaudited MD&A.
Section 2. That a copy of this Resolution shall be filed in the offices of the City Clerk, City Attorney, City Manager, and City Controller.
RESOLUTION NO. _________
3 Section 3. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this ____________ day of _____________, 2024.
_______________________________
EMMA SHARIF
MAYOR OF THE CITY OF COMPTON
ATTEST:
_______________________________
SATRA D. ZURITA
CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON )
I, Satra D. Zurita, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on this ___________ day of ________________, 2024.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCILMEMBERS -
NOES: COUNCILMEMBERS -
ABSTAIN: COUNCILMEMBERS -
ABSENT: COUNCILMEMBERS -
___________________________________
SATRA D. ZURITA
CITY CLERK OF THE CITY OF COMPTON
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
1 UNAUDITED
As management of the City of Compton, California (City) we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for fiscal year ended June 30, 2023.
A) FINANCIAL HIGHLIGHTS
The assets and the deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the Fiscal Year 2022-2023 by approximately $79.1 million (net position), which is approximately $60.3 million higher than the previous year's net position. This is due primarily to decreases in expenses of Governmental Activities of $22.5 million, Business-Type activity expense decreases of $2.1 million, increases in property taxes of $4.7 million, increases in investment earnings of $5.3 million, and increases in utility user taxes of $2.7 million. The unrestricted portion of net position as of June 30, 2023 increased by approximately $37.0 million to ($219.0) million accumulating more resources that may be used to meet the City’s ongoing obligations to citizens and creditors. As of the close of the current fiscal year, the City’s Governmental Funds (e.g. General Fund, Capital Projects Funds, Special Revenue Funds, etc.) reported combined fund balances of approximately $218.7 million, an increase of approximately $28.2 million from the prior year. Of this amount, $197.7 million, or approximately
90.4%, of total fund balances are reported as either “Nonspendable” ($1.7 million), "Assigned" ($142 thousand), “Committed” ($552 thousand), or “Restricted” ($195.3 million) fund balances. The increase in the City's governmental funds combined fund balances reported was primarily driven by increases in tax revenue (by approximately $6.7 million).
The City’s net capital assets (land, buildings, equipment, infrastructure, less accumulated depreciation) were at $209.9 million as of June 30, 2023, increasing by $1.4 million over the previous year due mainly to an increase in infrastructure capital assets.
The City’s net long-term liabilities increased by $10.6 million to $416.2 million, primarily as a result of the increase in the Pension liability of approximately $51.4 million, combined with a decrease in Other Post Employment Benefits Payable (OPEB) liability of $35.2 million as well as a decrease in long term Bonds and notes payable of approximately $5.5 million, for Fiscal Year 2022-2023. The City’s deferred inflow on resources decreased by $25.5 million to $64.5 million, primarily as a result of a combination of a decrease of Pension deferred inflows of approximately $46.5 million in net differences between projected and actual earnings on pension plan investments, as well as an increase in OPEB deferred inflows of $19.6 million from the difference between the expected and actual experience of the OPEB plan, as well as from changes in assumptions in the OPEB plan. Additionally, the City’s deferred outflows increased by $13.3 million, or 22.8% due to a combination of an increase of $25.9 million from Net Difference between Projected and Actual Earnings on Pension Plan Investments and pension plan changes in assumptions, with a decrease of $12.6 million from OPEB plan changes of assumptions. During FY 2022-2023, Sales Taxes decreased by approximately $6.8 million or 19.5%. The City saw a decrease in Sales Tax due to a decrease in spending.
Utility User Taxes increased by approximately $2.7 million, or 22.2%, during FY 2022-2023, as a result of increased commercial and industrial activity within the City. Investment earnings increased by $5.6 million or 441.1% during Fiscal Year 2022-2023, primarily due to an increase in market interest rates.
B) OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: government-wide financial statements, fund financial statements and notes to basic financial statements. This report also contains supplementary information in addition to the basic financial statements.
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
2 UNAUDITED
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, with the difference between the four reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, environmental and human services and debt service. The business-type activities of the City include operations of its Water, Sewer and Solid Waste utilities.
The government-wide financial statements include not only the City itself (known as the primary government), but also activities of three legally separate component units: the Successor Agency of the City of Compton, the Compton Public Finance Authority, and the Compton Housing Authority. Because the City Council acts as (or appoints) the governing board for each of these component units and because they function as part of the City government, their activities are blended with those of the primary government.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds
Governmental Funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the governmentwide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains 134 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, the Retirement Fund, and the Compton Housing Successor Capital Projects Fund, each of which are considered to be major funds. Data from the other 131 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the Additional Financial Information section of this report.
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
3 UNAUDITED
The City adopts an annual appropriated budget for its General Fund, each of its special revenue funds, its debt service fund, and its capital projects fund. A budgetary comparison statement is provided for each of the City’s major governmental funds or groups of funds to demonstrate compliance with this budget. The budgetary comparison statement for the General Fund and the Retirement Fund is located in the basic financial statements.
The basic governmental fund financial statements can be found on pages 8-11 of this report.
Proprietary Funds
The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the governmentwide financial statements. The City uses Enterprise Funds to account for its Water, Sewer and Solid Waste utilities. Internal Service Funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for the following activities:
Equipment Usage and Rental
Central Duplication, and
Self-Insurance
Because these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the governmentwide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water, Sewer, and Solid Waste funds, each of which is considered a major fund of the City. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the Additional Financial Information section of this report. The basic proprietary fund financial statements can be found starting at page 12 of this report.
Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 18 - 69 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found on page 70 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds, together with information on the Retirement Fund budget comparison, are presented immediately following the required supplementary information on pensions and other postemployment benefits.
C) GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of the City’s financial position. In the case of the City, assets and deferred outflows exceeded liabilities and deferred inflows by $79.1 million at the close of Fiscal Year 2022-2023.
A large portion of the City’s net position, $100.8 million reflects its net investment in capital assets (e.g., land, buildings, utility and general government infrastructure, machinery and equipment, etc.), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
4 UNAUDITED
Another large portion of the City’s net position, $197.4 million is restricted and, as noted earlier, is restricted to meet the City’s ongoing obligations to creditors, grantors, and special-levy tax payers. A negative portion of the City’s net position, ($219.0 million) represents a deficit in resources that need to be set aside to cover long term liabilities. At the end of the fiscal year, due to the City’s financial position and despite the impacts of the COVID-19 pandemic on the City's revenues, the City is able to report improvements in balances in net position for both its governmental activities as well as its business activities.
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
5 UNAUDITED
The City’s governmental current assets increased by $53.0 million (primarily due to an increase in property tax revenues of $4.7 million, an increase in investment earnings of $5.3 million, an increase in Charges for services of $1.3 million, and a decrease in Governmental Activities expenses of $22.5 million) to $235.7 million, while current assets for business-type activities increased by $7.4 million to $51.3 million. Net capital assets minimally increased to $209.9 million at June 30, 2023. Long-term liabilities increased by $10.6 million to $416.2 million primarily as a net result of the increase in the Pension liability of approximately $51.6 million, a decrease in OPEB liability of approximately $35.2 million, and a decrease in Bonds and Notes Payable of approximately $5.5 million, for Fiscal Year 2022-2023. Further, Deferred outflows of resources increased by $13.3 million to $71.7 million primarily because of a combination of an increase of $25.9 million from Net Difference between Projected and Actual Earnings on Pension Plan Investments and pension plan changes in assumptions, with a decrease of $12.6 million from OPEB plan changes of assumptions.
202320222023202220232022$235,753 182,711 51,342 43,952 287,095 226,663 22,823 34,738 26,208 25,729 49,031 60,467 170,367 166,236 39,542 42,262 209,909 208,498 428,943 383,685 117,092 111,943 546,035 495,628 67,204 53,627 4,497 4,772 71,701 58,399 49,090 31,823 8,779 7,773 57,869 39,596 346,301 331,840 69,932 73,779 416,233 405,619 395,391 363,663 78,711 81,552 474,102 445,215 59,080 84,916 5,456 5,074 64,536 89,990 100,757 93,453 - - 100,757 93,453 189,027 172,752 8,356 8,644 197,383 181,396 (248,108) (277,473) 29,066 21,446 (219,042) (256,027) $41,676 (11,268) 37,422 30,090 79,098 18,822 Current assetsNoncurrent AssetsBusiness-type ActivitiesTotalCity of Compton, California (000's)As of June 30, 2023 and 2022 Restricted Unrestricted Total net positionGovernmental ActivitiesLong-term liabilities, net of current portion Total liabilitiesDeferred inflows of resourcesNET POSITIONCapital assets Total assetsDeferred outflows of resourcesLIABILITIESCurrent liabilities Net investment in capital assetsASSETS
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
6 UNAUDITED
Total revenues increased from an adjusted amount of $180.9 million for Fiscal Year 2021-2022 to $187.0 million for Fiscal Year 2022-2023, an increase of $6.0 million or 3.3%. The City experienced an increase of 1.1% in tax revenues or $1.3 million. While Franchise Tax, and Special Assessment Taxes saw increases of $750 thousand (28.3% from 1$2.7 million to $3.4 million), and $38 thousand (.91% from $4.2 million to $4.23 million) respectively, certain tax revenues were less affected by the Covid-19 pandemic. Sales Taxes decreased due to a reduction in spending trends, recording a $6.8 million decrease (19.5% from $34.8 million to $28.0 million). Additionally, Property Tax increased by $4.7 million or 8.4% to $60.3 million primarily due to an increase in total assessed values (a 6.69% increase as shown in the Proposition 111 Analysis of the Office of the Assessor of Los Angeles County). Total expenses decreased by $24.6 million from $151.3 million in fiscal year 2021-2022 to $126.7 million in fiscal year 2022-2023 or 16.3%. This decrease in expenses is primarily due to a $19.2 million increase in Deferred outflows related to 202320222023202220232022Revenues Program revenues Charges for services $18,863 17,551 29,473 28,244 48,336 45,795 Op. grants & cont.9,268 9,229 - - 9,268 9,229 Cap. Grants & cont.7,317 7,534 - - 7,317 7,534 General RevenuesTaxes Property*60,300 55,643 - - 60,300 55,643 Sales28,023 34,824 - - 28,023 34,824 Utility user taxes15,263 12,541 - - 15,263 12,541 Franchise Taxes3,399 2,649 - - 3,399 2,649 Special Assessments4,227 4,188 - - 4,227 4,188 Transient occupancy taxes82 64 - - 82 64 Real property transfer taxes203 318 - - 203 318 Intergovernmental not restricted to specific programs5,904 8,673 - - 5,904 8,673 Investment earnings3,988 (1,305) 325 41 4,313 (1,264) Other Income306 707 - - 306 707 Transfer in from fiduciary fund42 (7) (42) 7 - - Total Revenues*157,185 152,609 29,756 28,292 186,941 180,901 Expenses General government23,597 27,104 - - 23,597 27,104 Public Safety46,880 43,593 - - 46,880 43,593 Public Works13,403 12,598 - - 13,403 12,598 Management Services2,574 29,131 - - 2,574 29,131 Environmental and Human Services15,234 11,656 - - 15,234 11,656 Interest on long-term debt2,554 2,682 - - 2,554 2,682 Water- - 13,306 15,794 13,306 15,794 Rubbish- - 6,826 6,350 6,826 6,350 Sewer- - 2,292 2,362 2,292 2,362 Total Expenses104,242 126,764 22,424 24,506 126,666 151,270 Prior Year Adjustment- (16,093) - 183 - (15,910) Transfers- - - - - - Change in Net Position*52,944 25,847 7,332 3,786 60,276 29,633 Net Position, July 1 (as restated)(11,268) (37,115) 30,090 26,304 18,822 (10,811) Net position, June 30* $41,676 (11,268) 37,422 30,090 79,098 18,822 Governmental ActivitiesBusiness-type ActivitiesTotalCity of Compton, Change in Net Position (000's)For the Years Ended June 30, 2023 and 2022
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
7 UNAUDITED
Pension in Governmental Activities, as well as a $1.9 million decrease Governmental Activities expenses mainly due to a decrease in the OPEB liability.
Governmental Activities
The total growth in net position for the Governmental Activities of the City was $53.0 million for the fiscal year ended June 30, 2023 compared to the amount of $9.8 million in fiscal year ended June 30, 2022, a $43.2 million increase.
This was mainly due to a decrease on Management Services expenditures by approximately $26.6 million related to a $19.2 million increase in Deferred outflows related to Pension in Governmental Activities, as well as a $1.9 million decrease Governmental Activities expenses mainly due to a decrease in the OPEB liability. Total general revenues and transfers increased $3.4 million compared to the prior year primarily due to the increases in tax revenue. The City of Compton has three major tax sources, sales, property, and utility users’ tax. While these sources generally provide for a diversified and stable tax base, which reduces reliance on any one source, this year the City did see significant increases in both utility user tax and property tax, further described below.
Property Tax
Property taxes are levied based on assessed values, which grew 6.69% (as shown in the Proposition 111 Analysis of the Office of the Assessor of Los Angeles County for new non-residential growth) this past year. This reflects a real estate market in the City of Compton that continues to gain strength resulting in a $4.7 million or 8.4% increase in property tax revenues to a total of $60.3 million from the previous amount of $55.6 million.
Sales Tax
Sales tax revenue decreased by approximately $6.8 million or 19.5% to $28.0 million in Fiscal Year 2022-2023 compared to Fiscal Year 2021-2022, primarily due to a reduction in spending. 010,000,00020,000,00030,000,00040,000,00050,000,00060,000,00070,000,00020002001200220032004200520062007200820092010*201120122013*2014*2015*2016*2017*201820192020202120222023 AMOUNT(IN MILLIONS)FISCAL YEAR(*Unaudited)PROPERTY TAX
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
8 UNAUDITED
Utility User Taxes
Utility User tax revenue also increased in Fiscal Year 2022-2023 to $15.3 million, increasing approximately $2.7 million or 21.7% from $12.5 million in the prior Fiscal Year. For commercial, industrial, retail and certain other categories of utility user tax, the utility user tax is computed on units of utility usage. As a result, there was an increase in commercial and industrial activities.
Gas Taxes
Gas tax revenues for Fiscal Year 2022-2023 increased by approximately $358 thousand or 8.4% for a total of approximately $4.6 million versus prior year actual receipts of $4.2 million. The increase in revenue is primarily driven by the increase in the cost of gas that occurred during FY2022-2023. 05,000,00010,000,00015,000,00020,000,00025,000,00030,000,00035,000,00040,000,00020002001200220032004200520062007200820092010*201120122013*2014*2015*2016*2017*201820192020202120222023 AMOUNT(IN MILLIONS)FISCAL YEAR(* Unaudited)SALES TAX REVENUE 02,000,0004,000,0006,000,0008,000,00010,000,00012,000,00014,000,00016,000,00018,000,00020002001200220032004200520062007200820092010*201120122013*2014*2015*2016*2017*201820192020202120222023 AMOUNT(IN MILLIONS)FISCAL YEAR(*Unaudited)UTILITY USER TAX REVENUE
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
9 UNAUDITED
Franchise Taxes
Franchise tax revenues for Fiscal Year 2022-2023 increased by approximately $750 thousand or 28.32% for a total of $3.4 million versus prior year actual receipts of $2.65 million. The increase in revenue is primarily driven by an increase in commercial and industrial activities.
Investment revenues
Investment revenues for Governmental Activities also increased by $5.3 million or 415.4% due to increases in market rates.
Expenses of Governmental Activities
The City continued its efforts to maintain effective cost controls during Fiscal Year 2022-2023, as it did during Fiscal Year 2021-2022. Governmental Activities expenses during Fiscal Year 2022-2023 were allocated as shown in the following chart:
0500,0001,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,0005,000,00020002001200220032004200520062007200820092010*201120122013*2014*2015*2016*2017*201820192020202120222023 AMUONT(IN MILLIONS) FISCAL YEAR(*UNAUDITED)GAS TAX REVENUE
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
10 UNAUDITED
Public safety expenses
Public Safety expenses increased by $3.3 million or 7.5% to $46.9 million primarily due to increases in expenditures for salaries and in LA County Sherriff contract costs, approximately $2.1 million combined.
Public works expenses
Public works expenses increased 6.4% to $13.4 million primarily due an increase in depreciation expenses related to capital assets for Public Works activities.
Management services expenses
Management Services Expenses decreased 91.2% to $2.6 million, primarily due to a $19.2 million increase in Deferred outflows related to Pension, as well as a $1.9 million decrease in the OPEB liability General government expenses
General government expenses decreased 12.9% from $27.1 million to $23.4 million mainly due to decreases in federal grant spending by approximately $3.1 million.
Environmental and human services expenses
Environmental and human services expenses increased 30.7% from $11.7 million to $15.2 million primarily from a variety of increases in governmental activities. One such activity that saw an increase was the Compton Housing Successor which had development costs of approximately $2.3 million. Additionally there were increases in Federal, State, and County grant expenditures of approximately $613 thousand, $187 thousand, and $81 thousand, respectively.
Lastly, there were also increases in Recreation activity salary expenditures in comparison to Fiscal Year 2021-2022.
Interest on long-term debt
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
11 UNAUDITED
Interest on long-term debt for Governmental Activities decreased 4.8% to $2.6 million, with debt service payments of $2.9 million, as a result of debt-service structures.
The following chart examines the City’s governmental (i.e. non-business type) expenses over the past several years:
Governmental Expenses by Type
Business-type Activities
Business-type activities increased the City's net position by $7.3 million in Fiscal Year 2022-2023 to $37.4 million.
Key factors related to business-type activities include:
Total revenues for business-type activities were slightly changed, with an increase of approximately $1.5 million compared to the previous year.
Total operating expenses in the business-type activities decreased $2.4 million compared to the prior Fiscal Year due primarily to a decrease of $2.8 million in the Water Enterprise Fund of Pension and OPEB costs.
D) FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
020406080100120140FY 11/12 FY 12/13 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23MillionsGovernmental Expenses by Type*(Shown Cumulatively)General GovernmentRedevelopmentPass-through paymentsPublic SafetyPublic WorksManagement ServicesEnvironmental and Human ServicesInterest on Long-Term Debt
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
12 UNAUDITED
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows and outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, the unrestricted fund balance may serve as a useful measure of the City’s net resources available for spending at the end of the fiscal year.
As of the end of the 2022-2023 Fiscal Year, the City’s governmental funds report combined ending fund balances of $218.7 million, an increase of $28.2 million over the prior year, or 14.8%. Increases in tax and special assessment revenue for the current year provided a $6.6 million or 6.3% increase in revenues to $111.5 million. Additionally, Use of Money and Property revenue increased by $5.2 million to $3.9 million. Governmental funds also had a decrease in capital outlay expenditures of approximately $3.9 million, or 19.2%. Debt service payments for Governmental funds also decreased by $1.4 million to $2.9 million for Fiscal Year 2022-2023.
Fund Balance
The components of fund balance include the following line items:
a) Nonspendable fund balance - $1.7 million (inherently non-spendable) include the portion of net resources that cannot be spent because of their form, such as long-term receivables, and the portion of net resources that cannot be spent because they must be maintained intact.
b) Restricted fund balance - $195.3 million (externally enforceable limitations on use) include amounts subject to limitations imposed by creditors, grantors, contributors, or laws and regulations of other government c) Committed fund balance - $552 thousand (self-imposed limitation set in place prior to the end of the period) Limitation imposed at the highest level of decision making that requires formal action at the same level to remove. d) Assigned fund balance - $142 thousand (limitation resulting from intended use) consists of amounts that are constrained by the government's intent to be used for specific purposes, but are neither restricted nor committed. Intent should be expressed by (a) the governing body itself or (b) a body (a budget or finance committee, for example) or official to which the governing body has delegated the authority to assign amounts to be used for specific purposes.
Based on the City Charter, the City Manager is the designated official. e) Unassigned fund balance - $20.9 million, consists of fund balance in excess of the other components of fund balance.
The fund balance of the City's General Fund increased by $13.0 million during the current Fiscal Year. Revenues exceeded expenditures by approximately $16.6 million in Fiscal Year 2022-2023. Expenditures in the General Fund increased by $4.6 million. The increase in General Fund expenses were driven by increases in Capital outlay and Public Safety activities. Additionally, Transfers In were exceeded by Transfers Out (which were primarily for debt service payment funding of $3.6 million) by approximately $3.6 million.
The fund balance of the City's Housing Successor Capital Projects Fund decreased by $1.2 million, primarily due to an increase in expenditures made to the Successor Agency development purposes (approximately $2.3 million).
Perhaps the best measure of the City’s effectiveness in weathering an economic downturn and building sustained growth for the future is its ability to catch up on building fund reserves. As a rule of thumb, a city should maintain sufficient reserves to weather the worst potential emergency scenarios. In the accompanying chart, the changes in the fund balance of the City’s General Fund and the changes in total expenditures (excluding transfers out) is presented.
As this chart demonstrates, the actions taken by the City have effectively improved revenues, controlled expenditures and allowed the City to increase its reserves for future needs. As shown in the chart below, in Fiscal Year 2011-2012 the fund balance was approximately negative $38 million while total General Fund expenditures were $48 million.
By the end of Fiscal Year 2022-2023, on the other hand, the General Fund fund balance was approximately a positive $21.1 million while total expenditures were $66.9 million.
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
13 UNAUDITED
Enterprise Funds
The City’s enterprise funds account for financial transactions of the City’s business-type function that primarily serve external customers. Total net position of the enterprise funds totaled $37.8 million, an increase of $7.8 million or
25.9%. The increase to total net position is the result of effective rate setting and managing available resources.
Other factors concerning the finances of these funds are as follows:
Operating revenues for the Water Enterprise decreased by approximately 4.2% to $19.1 million due to the effect of heavy rains during FY2022-2023. Residential, Commercial, Industrial, and Multi-family consumption all decreased in a comparable manner compared to the consumption of the prior year. Operating expenses decreased by $2.7 million, or 20.0% during Fiscal Year 2022-2023 primarily due to a decrease of Pension and OPEB costs of $2.7 million. After factoring in non-operating items, net position in the Water Enterprise still displays an increase of $6.3 million to $33.4 million.
(60,000,000.00) (40,000,000.00) (20,000,000.00) - 20,000,000.00 40,000,000.00 60,000,000.00 80,000,000.00FY11/12 FY12/13 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23General Fund Balance and General Fund Total Expenditures* General Fund BalanceGeneral Fund Expenditures*This data has not been presented for FY13/14 through FY17/18 due to there not being audited financial information available for this tiime period.
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
14 UNAUDITED
Operating revenues for the Sewer Enterprise decreased by approximately $112 thousand or 4.0%, also due to heavy rains during FY2022-2023. Operating expenses decreased by 11.1% or by $154 thousand primarily due to approximately $120 thousand decrease in contractual services compared to the prior year.
Operating revenues for the Solid Waste Enterprise increased $2.2 million (40.0%) from $5.5 million in prior Fiscal Year to $7.6 million in current fiscal year. This increase is due to a delay in revenue billing that occurred during Fiscal Year 2021-2022, where additional billings were issued in FY2022-2023 to recuperate the prior delayed billings.
Operating expenses increased $460 thousand to $6.8 million, or 7.3%. Overall, the net position in the Solid Waste Enterprise Fund increased $797 thousand to $(1.5 million).
Internal Service Funds
The City’s internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its Equipment Rental, Central Duplication, and Self-Insurance Services provided. Because these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.
Factors concerning the finances of the internal service funds have already been addressed in the discussion of the City’s governmental activities.
E) BUDGETARY HIGHLIGHTS
The City adopts annual appropriated operating budgets for its governmental funds (General Fund, special revenue funds, debt service fund, and Housing Successor capital projects fund), and reports the results of operations on a budgetary comparison basis for the General Fund and Retirement fund only. The City also uses annual financial plans as a management tool for its enterprise and internal service funds, although the City does not report the results of these funds on a budgetary comparison
basis.
When preparing its budgets, the City attempts to estimate its revenues using realistic, but conservative, methods so as to budget its expenditure appropriations and activities in a prudent manner. As a result, the City Council adopts budget adjustments during the course of the Fiscal Year to reflect both changed priorities and availability of additional revenues to allow for expansion of existing programs. During the course of the year, the City Council can amend the originally adopted budget to re-appropriate prior year approved projects and expenditures, increase legal and professional services, move up the timing of expenditures for capital projects, and provide additional funding for community support.
General Fund
The General Fund reflected a positive net budget variance of $15.4 million when comparing actual amounts to the final budget for the 2022-2023 Fiscal Year. This budget variance reflects actual revenues exceeding the final budget by $9.9 million and total actual expenditures of $5.5 million less than the final budget.
F) CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets and CIP for its governmental and business-type activities amounts to approximately $209.9 million net of accumulated depreciation and construction in progress as of June 30, 2023, which is a net increase of $1.4 million (0.7%) over the amount of the prior year total of $208.5 million.
Capital assets, net of accumulated depreciation, for governmental activities, increased from $166.2 million at June 30, 2022 to $170.4 million at June 30, 2023; a net increase of $4.1 million or 2.5%. Capital asset net additions totaled
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
15 UNAUDITED
$10.7 million, and depreciation expense totaled $8.6 million. Significant additions include capital projects for streets and pavement ($9.3 million).
Capital assets, net of accumulated depreciation, for business-type activities, decreased from $42.3 million at June 30, 2022 to $39.5 million at June 30, 2023; a net decrease of $2.7 million or 6.4%. Depreciation expense totaled $2.7 million. Additional information on the City’s capital assets can be found in Note IIID to the basic financial statements on page 41 of this report.
Long-term Debt
At the end of the current Fiscal Year, the City had total long-term bonded debt outstanding of $113.4 million, down by $5.5 million from the prior year. The decrease is comprised of bond repayments.
Other long-term obligations include pension obligations of $157.2 million, other post-employment benefits of $125.4 million, employee-compensated absences of $4.4 million, and outstanding claims of $19.5 million.
G) PRIOR PERIOD ADJUSTMENTS
At the end of Fiscal Year 2022-2023, the City had no prior period adjustments, an increase of $15.9 million, from $(15.9 million) in prior period adjustments during Fiscal Year 2021-2022. The prior period adjustments during Fiscal 202320222023202220232022Land$88,425 88,425 162162 88,587 88,587 Buildings60,603 59,352 38363,836 64,439 63,188 Infrastructure130,711 123,487 7028570,285 200,996 193,772 Machinery and Equipment21,534 21,283 36543,654 25,188 24,937 Construction in Progress14,468 13,522 0- 14,468 13,522 Right of use assets 1,009 - 0 - 1,009 - Accumulated Depreciation(146,383) (139,834) (38,395) (35,675) (184,778) (175,509) Total capital assets, net $170,367 166,235 39,542 42,262 209,909 208,497 City of Compton's Capital Assets, Net of Accumulated Depreciation (000's)GovernmentalActivitiesBusiness-typeAs of June 30, 2023 and 2022ActivitiesTotal 202320222023202220232022Bonds Payable $ 69,611 72,744 49,133 51,285 118,744 124,029 Mortgage Loan Payable - - - - Notes Payable - - - - - - Installment Payment Agreement- 39 - - - 39 Compensated Absences3,999 4,360 419 444 4,418 4,804 Claims Payable19,497 19,970 - - 19,497 19,970 Net Pension Liability148,386 99,580 8,823 6,252 157,209 105,832 Total other postemployment benefits111,372 142,499 13,989 18,104 125,361 160,603 Total debt$352,865 339,192 72,364 76,085 425,229 415,277 City of Compton's Outstanding Long-Term Debt (000's)As of June 30, 2023 and 2022Activities TotalBusiness-typeActivitiesGovernmental
CITY OF COMPTON, CALIFORNIA
Management’s Discussion and Analysis (UNAUDITED)
June 30, 2023
16 UNAUDITED
Year 2021-2022 were primarily due to the effects of the City’s capital assets valuation that was performed with effective date during FY 2021-2022. However, during Fiscal Year 2022-2023, there were no prior period adjustments.
H) AMERICAN RESCUE PLAN ACT AWARD
The City of Compton was awarded funds from the American Rescue Plan Act (ARPA) in calendar year 2022. The first installment of the award was for $17,212,501.50 received on June 10, 2021. The second installment was received on September 26, 2022 for an amount of $17,212,501.50. As of June 30, 2023, $8.4 million was spent or obligated towards qualifying expenditures. For a description of expenditures that qualify for the use of ARPA funds, please see the file at the following link:
https://home.treasury.gov/system/files/136/SLFRF-Final-Rule.pdf
I) ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
While the adopted General Fund budget for Fiscal Year 2022-2023 reflected projected revenues plus a portion of reserves meeting operating expenditures, the overall result was an excess of revenues over expenditures of $13.0 million when factoring in interfund transfers in and out. Transfers included a $3.6 million transfer out to the Debt Service Fund to make bond repayments for the 2008 and 2016 Lease Revenue Bonds. Due to the uncertainty of the economic environment due to the COVID-19 recovery, Fiscal Year 2022-23 total revenues were forecasted conservatively and cost cutting measures were implemented during Fiscal Year 2020-2021 and such measures gradually receded during Fiscal Year 2022-2023 in order to increase service levels to the public. Despite the contraction in staffing and other cost cutting measures from prior budgets, the adopted Fiscal Year 2022-2023 budget provided for enhancement of the robust services to the community for which Compton strives to achieve annually.
This endeavor also continued throughout Fiscal Year 2023-2024.
J) REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for readers of the financial statements. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Sharon Rahban Navizadeh, City Controller, City of Compton, 205 S. Willowbrook Avenue, City Controller’s Office, Compton, California 90220. Additional information, including the prior year’s audited financial statements and prior and current year budgets are available on the City’s website at https://www.comptoncity.org/departments/city-manager/budget-information.
Audit Reports for FY 2023
Presented to the City Council
June 17, 2025
City of Compton
Presented by
Eden Casareno, Partner
Panida Kongpetch, Senior Manager
EadiePayne
Agenda
• Independent Auditor’s Reports
• Report on the Financial Statements
• Report Required by Government Auditing Standards
• Report Required by Uniform Guidance
• Schedule of Findings and Questioned Costs
• Other Required Communication with Board of Governance •Q & A
Independent Auditor’s Reports
•Report on the Financial Statements (page 1 of Financial Statements with Independent Auditor’s Report)
“In our opinion, the accompanying financial statem ents present fairly, in all material respects, the respective financial position of the government al activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Compton, as of June 30, 2023, and the respective changes in fin ancial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.”
2 • Auditing standards
• Generally accepted in the U.S. (GAAS)
• Government Auditing Standards
• Management responsibilities
• Auditor’s responsibilities
• Required supplementary information
• Supplementary information
Financial highlights (discussed by City Controller)
•Report Required by Government Auditing Standards (page 1 of Single Audit Report)
Report on internal control over financial reporting
• We do not express an opinion on the effectiv eness of the City’s internal control. • Not designed to identify all deficiencies in internal control. • We did identify deficiencies that we consi der to be material weaknesses and significant deficiencies (Slide 6 & 7)
Report on compliance and other matters
• Compliance with certain provisions of la ws, regulations, contracts and grant agreements • Non-compliance could have a direct and mate rial effect on the financial statements • We reported instances of non-compliance (Slide 7)
3Independent Auditor’s Reports (Continued)
•Report Required by Uniform Guidance (page 3 of Single Audit Report)
“In our opinion, City of Compton complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023.”
• Compliance audit
• Required by Single Audit Act and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
• Major federal program audited: Se ction 8 Housing Choice Vouchers • Management responsibilities
• Auditor’s responsibilities
• We noted instances of non-compliance and in ternal control deficiencies (Slide 5) • Schedule of expenditures of federal aw ards (page 7 of Single Audit Report) 4Independent Auditor’s Reports (Continued)
Schedule of Findings and Questioned Costs
•Major Federal Award Programs
General
• 2023-001 Filing of Single Audit Report
• 2023-002 Procurement Policy
• 2023-003 Lack of Risk Assessment
Section 8 Housing Choice Vouchers
• 2023-004 Lack of Reporting
• 2023-005 Delayed Approval of Compensation Rates
• 2023-006 Lack of Oversight Due to Management Turnover 5 Schedule of Findings and Questioned Costs (Continued) •Financial Statements
• 2023-007 Delay and Errors in Bank Reconciliation
• 2023-008 Lack of Segregation of Duties Around Permit Revenue Process • 2023-009 Insufficient Qualified Personnel
• 2023-010 Information Technology Controls
• 2023-011 City-wide Implementation of Policies and Procedures • 2023-012 Lack of Communication Regarding Contingent Liabilities 6 •Financial Statements
• 2023-013 Delay in Recording Step Increases in Salaries • 2023-014 Uncollected Grants Receivable
• 2023-015 Record Retention
• 2023-016 Internal Audits
• 2023-017 Noncompliance with Bond Reporting Requirements • 2023-018 Noncompliance with Annual Investment Policy Requirement 7Schedule of Findings and Questioned Costs (Continued)
Other Required Communication With Board
of Governance
•Planned scope and timing
• We had to modify and extend the scope and timing of our audit •Significant risks identified
• Management override of internal controls.
• Improper revenue recognition due to fraud.
• Invalid expenditures due to fraud.
• Negative fund cash is not actively monitored and adjusted. • Understatement of payables and expenditures.
• Understatement of contingent liabilities.
8 Other Required Communication With Board
of Governance (Continued)
•New accounting pronouncements
• GASB 96, Subscription Based on IT Arrangements (SBITA) •Significant accounting estimates
• Allowance for doubtful accounts
• Pension liabilities
• OPEB liability
• Self-insurance claims
•Significant Disclosures
• Note II G, Noncompliance with debt covenants (page 51) • Note II I, Net position and fund balance (page 53)
• Note V B, City’s financial condition and management plans (page 66) 9 Other Required Communication With Board
of Governance (Continued)
•Significant Difficulties
• Incorrect audit schedules
• Supporting documentation not readily available
• Corrected Material Misstatements
• Governmental Activities: To reduce lease liability and debt service offset accounts for $104,934.
• Fiduciary: To increase land held for sale to lower of cost or market for $984,715. • Internal Service Fund: To increase accrued legal liability and legal expenses for $580,900.
10 Other Required Communication With Board
of Governance (Continued)
• Uncorrected Misstatements
• General fund: Revenue for vehicle license fee was over stated by $98,525 • Nonmajor fund:
• Revenue for highway user tax was over stated by $53,418 • Revenue for property taxes was over stated by $97,767. • No disagreements with management
• Representations requested from management
11 Eden C. Casareno, Partner
[email protected]
951-241-7805
Panida Kongpetch, Senior Manager
[email protected]
951-241-7813
THANK YOU
1 APRIL 1, 2025
The Compton City Council meeting was called to order at 5:40 p.m. by Mayor Emma Sharif in the Council Chambers of City Hall. The Moment of Silence and Pledge of Allegiance Ceremonies were also led by Mayor Emma Sharif.
ROLL CALL
Council Members Present: D. Duhart, J. Bowers, L. Darden, Mayor E. Sharif Council Members Absent: A. Spicer
Other Officials Present: S. Zurita, W. Hopkins, Jr.
Other Officials Absent: E. Perrodin, B. Mims
PRESENTATIONS
1. CERTIFICATE PRESENTATION IN THE MEMORY OF CESAR CHAVEZ, “LEADING THE WAY AWARD” – Mayor Sharif (TABLED)
PUBLIC COMMENTS ON AGENDA ITEMS AND NON-AGENDA MATTERS
Mayor Sharif reiterated the rules of decorum in Council Chambers.
Silvia Avalos, business owner, addressed the City Council regarding the alley adjacent to her home at San Luis St. and Brazil St. She also inquired about a response to her emails and phone calls concerning the street conditions in her neighborhood.
Bishop Guillory questioned the controversy surrounding a video from 2007. He argued that if it were truly hate speech, it would have been removed from YouTube. He defended his right to free speech and questioned why he faced calls for removal when he prioritized public safety.
Brianna Maldonado requested a Spanish translator. City Manager Hopkins Jr. informed Ms.
Maldonado that in accordance with the Brown Act, speakers are not entitled to a Spanish translator if they can speak English. She chose to address the City Council in Spanish.
Paul Perrodin expressed his concerns regarding street sweeping on Central Avenue. He questioned why the street sweepers are not using water or effectively picking up trash. He also inquired about the City’s decision to allocate $300,000 from Republic globally, rather than providing rebates to dissatisfied citizens.
Abril Villanueva, Army Veteran, encouraged the City Council to publicly reaffirm the Council Chambers as a safe space for all community members. She emphasized the importance of fostering an environment where all voices can be heard without intimidation. She also highlighted her commitment to standing up for freedom and supporting her community members’ call for unity and accountability.
Aaron Diaz called on the City to reaffirm its commitment to being a safe and inclusive space for all residents. He urged the City Council to make a public statement against discrimination and reinforce Compton as a welcoming home for everyone.
Kinsey Jones suggested adding a walkway, benches, and lighting where a McDonald's restaurant once stood. He reminisced about the area’s previous well-maintained condition and advocated for landscaping improvements to enhance the City’s appearance.
Lynn Boone expressed her appreciation to the community for their support. She also accused the City Manager of overstepping his authority with an agenda to undermine the City Attorney.
Tanya Lewis commended City Manager Hopkins Jr. for doing a commendable job compared to previous city managers. She also announced the Hub City Autism Network’s event on April 19 at Compton Airport. She went on to praise David Bennett from the Water Department for promptly addressing a maintenance request.
2. 2
Missy Barbara spoke in support of City Manager Hopkins Jr. She highlighted his efforts to be transparent, combat corruption and improve the City’s financial situation. She also acknowledged the challenges faced by previous administrations and encouraged residents to attend council meetings to better understand the issues at hand.
Vanessa Cain announced the Hub City Autism Network’s event on April 19. She also echoed the sentiments of Tanya and Missy regarding past city representation. She went on to advocate for a complete overhaul of City Hall staff to ensure the right people are in place.
Richard Earl spoke in opposition to any plans to replace the Compton Par 3 Golf Course with housing. He emphasized the importance of preserving historical and recreational sites in Compton for future generations. He also voiced his support for the City Manager’s efforts to improve the City and highlighted the need for walking paths on Greenleaf Blvd.
Benjamin Holifield recalled efforts in the past to maintain flowers and cleanliness around City Hall. He called for continued efforts to enhance the City's appearance as well as fostering community spirit.
Jumana A., representing a solar energy company, introduced a power purchase agreement that allows homeowners to switch to solar energy. She provided brochures in the lobby.
HEARING(S) - JOINT PUBLIC HEARING:
CITY COUNCIL AND UCDC 2025 PHA ANNUAL PLAN
On motion by Darden, seconded by Duhart, to open the joint public hearing at 6:29 p.m. by the following vote on roll call:
AYES: Council Members/Commissioners – Duhart, Spicer, Bowers, Darden, Sharif
NOES: Council Members/Commissioners – None
ABSENT: Council Members/Commissioners – None
Cecil Flournoy, Director of Community Development, presented the required Five-Year Administrative Plan and the 2025 Annual Plan report as mandated by HUD. The administrative plan outlines the policies, rules, and requirements for the Public Housing Agency (PHA) operations, focusing on serving the needs of very low and extremely low-income families. Mr.
Flournoy highlighted two proposed changes to the administrative plan. First, the authority to pay a $1,000 landlord incentive when funds are available, and second, the authority to administer project-based vouchers for projects under construction in the City. These project sites include the Tropicana Motel, the former Willow Tree Inn, a former motel on 1118 S. Long Beach Blvd, 1434 W. Compton Blvd, and 16208 Atlantic Ave.
Public noticing activities were conducted over a 45-day period through various channels, including the Compton Bulletin, the City's website, and social media, with notices available in English and Spanish. No public comments were received during this period.
PUBLIC COMMENTS ON THE PUBLIC HEARING
Tanya Lewis inquired about the status of Willow Tree Inn. Mr. Flournoy explained that while the physical construction is complete, authorization from HUD is needed to administer project- based vouchers, which will remain with the units and require qualified participants.
Missy Barbara suggested adding more retail establishments to the administrative plan, such as restaurants, particularly at Central Ave. and Compton Blvd. She also asked the City to clean the lot at 156th St. and Central Ave. and bill the property owner if necessary. Mr. Flournoy stated that plans are underway to address the Surplus Land Act for four proposed sites. He asserted that their intention is not solely to develop housing, but potentially mixed-use projects aimed at attracting national tenants and restaurant chains.
3 Kinsey Jones inquired about the remodeling of the motel on Long Beach Blvd. Mr. Flournoy explained that the property would serve as permanent supportive housing for extremely low and very low-income individuals and families. He also stated that security will be a requirement at the facility.
Lynn Boone questioned the use of the Compton Bulletin as part of the public noticing requirement.
She also inquired about rent control, adding that some apartment buildings charge high fees without improving services. Mr. Flournoy stated that public notices were placed at City Hall, Compton Library, and Dollarhide Community Center. He expressed his willingness to explore rent stabilization or rent control if directed by the City Manager/Executive Director or City Council/Commission.
Mark Smith inquired about using the vacant lot on Central Ave. and Compton Blvd. for church parking. He also suggested the installation of a jumbotron in front of City Hall for public notifications. Mr. Flournoy confirmed that temporary use of the lot is acceptable. He also mentioned previous discussions with the church regarding limitations.
On motion by Duhart, seconded by Darden, to close the joint public hearing at 6:45 p.m. by the following vote on roll call:
AYES: Council Members/Commissioners – Duhart, Bowers, Darden, Sharif NOES: Council Members/Commissioners – None
ABSENT: Council Members/Commissioners – Spicer
COUNCIL/COMMISSION COMMENTS ON THE PUBLIC HEARING
Councilmember/Commissioner Bowers emphasized the importance of prioritizing new restaurants in the city.
Councilmember/Commissioner Darden inquired about the shortage of housing units for Section 8 tenants. Mr. Flournoy explained that there is always a shortage compared to the number of available vouchers. He explained that the City currently has 803 vouchers, and if approved for project-based vouchers, this number will increase to 1,043.
Councilmember/Commissioner Darden questioned the appeal of the program considering the proposed cuts from Washington, D.C. Mr. Flournoy acknowledged that emergency housing vouchers would soon be discontinued, affecting the City’s response to COVID-19 and homelessness.
Councilmember/Commissioner Duhart raised concerns about a neglected lot at 156 th St. and Central Ave. She recommended the property owner be urged to maintain, develop, or sell the property, given its long-standing impact on the community's appearance.
Mayor/Chairperson Sharif inquired about the number of people on the Section 8 waiting list.
Mr. Flournoy reported that there are a few hundred individuals left on the list from 2016, with approximately 5,000 on the list for 2017.
REGULAR AGENDA
CITY MANAGER’S REPORT
2.REQUEST TO AUTHORIZE TRAVEL FOR ELECTED OFFICIALS – 2025
REGIONAL CONFERENCE AND JOURNAL ASSEMBLY, PALM DESERT, CA APRIL 30 – MAY 1
On motion by Duhart, seconded by Darden, the travel request was approved by the following vote on roll call:
AYES: Council Members – Duhart, Bowers, Darden, Sharif NOES: Council Members – None
ABSENT: Council Members – Spicer
4 ATTENDEES POLL
AYES: Council Members – Spicer, Bowers, Darden, Sharif NOES: Council Members – Duhart
UNFINISHED BUSINESS
3. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ACCEPT THE ESTIMATE OF
INNOVATIVE PLAYGROUNDS CO. INC., AND AUTHORIZING THE CITY
MANAGER TO ENTER INTO A CONSTRUCTION CONTRACT WITH
INNOVATIVE PLAYGROUNDS CO., INC., AND AMENDING THE GRANTS DEPARTMENT FY2024-2025 BUDGET TO ESTABLISH A PURCHASE ORDER FOR
THE LUEDERS PARK PLAYGROUND IMPROVEMENT PROJECT FOR THE AMOUNT OF $697,517.33
Mayor Sharif inquired about the pricing and contract details for this project.
City Manager Hopkins Jr. explained that this project involves construction and other services with the contract to follow upon City Council approval.
On motion by Duhart, seconded by Bowers, Resolution #26,218 entitled “A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF COMPTON AUTHORIZING THE CITY MANAGER TO ACCEPT THE ESTIMATE OF INNOVATIVE PLAYGROUNDS CO., INC., AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A
CONSTRUCTION CONTRACT WITH INNOVATIVE PLAYGROUNDS CO., INC., AND AMENDING THE GRANTS DEPARTMENT FY2024-2025 BUDGET TO ESTABLISH A
PURCHASE ORDER FOR THE LUEDERS PARK PLAYGROUND IMPROVEMENT PROJECT FOR THE AMOUNT OF $697,517.33” was approved by the following vote on roll call:
AYES: Council Members – Duhart, Bowers, Darden, Sharif NOES: Council Members – None
ABSENT: Council Members – Spicer
4. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO AMEND THE GRANTS MANAGEMENT DEPARTMENT’S 2024-2025 FISCAL YEAR BUDGET AND APPROPRIATE FUNDS WITHIN THE FY2020 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
FUND AND ISSUE A PURCHASE ORDER TO CREATIVE BUS SALES IN THE AMOUNT OF ($272,304,96) FOR THE PURCHASE OF TWO (2) GAS FILLED BUSES
FOR THE DIAL-A-RIDE PROGRAM
Councilmember Bowers asked if there was an alternative to purchasing gasoline buses.
City Manager Hopkins Jr. explained that the decision was driven by the need to utilize old Community Block Grant (CDBG) funds and the urgent need for transportation solutions for seniors and youth. He highlighted the challenges in acquiring alternative fuel vehicles and the City’s efforts to adjust bus driver compensation to attract qualified candidates.
On motion by Duhart, seconded by Darden, Resolution #26,219 entitled “A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF COMPTON AUTHORIZING THE CITY MANAGER TO ACCEPT THE ESTIMATE OF INNOVATIVE PLAYGROUNDS CO., INC., AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A
CONSTRUCTION CONTRACT WITH INNOVATIVE PLAYGROUNDS CO., INC., AND AMENDING THE GRANTS DEPARTMENT FY2024-2025 BUDGET TO ESTABLISH A
PURCHASE ORDER FOR THE LUEDERS PARK PLAYGROUND IMPROVEMENT PROJECT FOR THE AMOUNT OF $697,517.33” was approved by the following vote on roll call:
5 AYES: Council Members – Duhart, Bowers, Darden, Sharif NOES: Council Members – None
ABSENT: Council Members – Spicer
COUNCIL COMMENTS
Councilmember Duhart offered the following communications/announcements:
Recognition, Events, & Updates: Councilmember Duhart highlighted the importance of community participation in City Council meetings. On March 29, Councilmember Duhart hosted Mocktails and Masterpieces where community members gathered for an afternoon of creativity, good food, and great conversations. Councilmember Duhart inquired about lifeguard recruitment and water aerobics for seniors. City Manager Hopkins Jr. answered that he would provide an update at a future meeting.
District 1 Townhall Meeting: On April 5, Councilmember Duhart will host a District 1 Townhall meeting at Neighborhood Housing Services.
Earth Day: On April 19, the Beautification Committee in collaboration with the Recreation Department will be celebrating Earth Day at Gonzales Park from 10:00am to 2:00pm. Support for Local Economy: Councilmember Duhart encouraged everyone to eat, shop, and buy Compton to help create a safe, clean, and friendly City. Memorials: Councilmember Duhart requested the meeting be adjourned in memory of Tracy Filer, beloved sister of the honorable Judge Kelvin Filer.
Councilmember Bowers offered the following communications/announcements:
Recognition & Events: On March 29, Councilmember Bowers hosted the Third District Townhall meeting which highlighted the City's progress under the current administration.
Alondra Gateway Park Ribbon-Cutting Ceremony: On April 10, Assemblymember Mike Gipson and the San Gabriel Lower Los Angeles Rivers & Mountains Conservative will host a ribbon-cutting ceremony celebrating new green space development next to the Compton Creek and Cliffs’ Texas Style Burrito Eatery.
Delta Sigma Theta Sorority Fundraiser: On April 18, Delta Sigma Theta will host their Annual Fish-Fry Fundraiser from 11:30am to 6:00pm. $20/lunch and $25/dinner. Contact Lashaun at 213-399-7820 to place your order. Proceeds from the fundraiser will support the organization’s various community initiatives.
Autism Event: On April 19, Hub City Autism Network will host an Autism Event at Compton Airport beginning at 9:00am.
Woodlawn Cemetery Cleanup: Volunteers are needed for grounds maintenance cleanup on April 19 at Woodlawn Cemetery beginning at 9:00am.
Memorials: Councilmember Bowers requested the meeting be adjourned in memory of Willie H. M., a long-time Compton resident.
Councilmember Darden offered the following communications/announcements:
Recognition & Events: Councilmember Darden commented on the success of the following meetings: Quarterly Business Round Table, Compton Entertainment Chamber of Commerce Business Mixer, and the East Rancho Dominguez Neighborhood Association & Rising Communities meeting hosted by Los Angeles County Assessor Jeff Prang.
Councilmember Darden attended the grand opening of the Angels for Sight Vision Clinic in Long Beach, and the Positive Results Center's Annual Prom Dress Giveaway at the Dollarhide Community Center.
6 Community Block Club Meeting: On April 3, the City will host this event at the Dollarhide Community Center from 6:00pm to 8:00pm. This meeting will address existing block clubs, inactive block clubs, and residents aspiring to start a block club. Trash Disposal Reminder: Councilmember Darden reminded residents that Republic Services offers exclusive waste and recycling collection. For more information, please call 800-299-4898.
Memorials: Councilmember Darden requested the meeting be adjourned in memory of Carolyn German, wife of Reverend William German - founders of Optimal Christian Academy.
Mayor Sharif offered the following communications/announcements:
Recognition & Events: Mayor Sharif commented on the success of the Compton College Job Fair, Kelly Elementary's Career Day, and Councilmember Duhart’s Mocktails and Masterpieces event. Mayor Sharif also expressed her appreciation for the individuals responsible for coordinating the Positive Results Center's Prom Dress Giveaway and Annual Women's Luncheon in Carson.
Community Block Club Meeting: On April 3, the City will host this event at the Dollarhide Community Center from 6:00pm to 8:00pm. This meeting will address existing block clubs, inactive block clubs, and residents aspiring to start a block club. Senior Spring Brunch: On April 25, Mayor Sharif will host a Senior Spring Brunch at Dollarhide Community Center from 10:30am to 1:30pm. Reservations can be made by visiting or calling Dollarhide at 310-605-5688. Space is available on a first-come, first- served basis.
Congresswoman Maxine Waters Visit: On April 19, Congresswoman Maxine Waters will visit Compton to discuss federal policies and community action for meaningful change.
Details will be provided soon. Inquiries can be directed to 310-605-5662. Clergy Breakfast: On May 2, Mayor Sharif will host a Clergy Breakfast in City Hall Chambers from 10:00am to 1:00pm. This event invites pastors and clergy members from Compton to connect and discuss community support strategies. Interested participants can call 424-344-0961 for more information.
Immigration Unity Resource Fair: Mayor Sharif reported that this event will provide guidance on legal services, community programs, and other essential resources. Further details will be announced. For more information contact the Mayor's liaison at 310-605- 5662.
Mayor Sharif emphasized the City's commitment to building a stronger Compton.
ADJOURNMENT
On motion by Duhart, seconded by Darden, the meeting was adjourned in memory of Tracy Filer, Willie H. M. and Carolyn German at 7:26 p.m., by the following vote on roll call:
AYES: Council Members – Duhart, Bowers, Darden, Sharif NOES: Council Members – None
ABSENT: Council Members – Spicer
_____________________________________ __________________________________ SATRA D. ZURITA EMMA SHARIF
CITY CLERK OF THE CITY OF COMPTON MAYOR OF THE CITY OF COMPTON June 17, 2025
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: WILLIE A. HOPKINS, JR.
CITY MANAGER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ENTER INTO
INVESTIGATIVE, LEGAL, AND PROFESSIONAL SERVICE
AGREEMENTS WITH LIEBERT CASSIDY WHITMORE AND JL
GROUP, LLC, FOR PROVISION OF ADMINISTRATIVE
INVESTIGATION SERVICES ON AN “AS-NEEDED” BASIS FOR
FISCAL YEARS 2024-2025 AND 2025-2026
SUMMARY
This resolution is to present and reinstate the contracted remainder of the 2024-2025 Fiscal Year budget for past and current investigative services and its companies’ corresponding invoices, and to continue the use of such contracted services for the Human Resources Department into the new Fiscal Year of 2025-2026 budget. Liebert Cassidy Whitmore and JL Group, LLC, provide services “as-needed’ by Department staff on a monthly basis for many services, including administrative, investigative, legal, and professional.
BACKGROUND
Liebert Cassidy Whitmore is a law firm that provides a variety of legal, investigative, and training representation for the City of Compton and its parallel departments. JL Group, LLC, is a company that provides comprehensive investigative and administrative services, newly requested by the Human Resources Department for “as-needed” advisory services.
STATEMENT OF ISSUE
The City of Compton and its parallel departments, mainly the City Manager’s Office, the Legal Division of the City, and the Human Resources Department, utilize such law firms and companies on a monthly basis for indispensable investigation and legal services. As such, the Human Resources Department is often assigned to induce such services with each corresponding party.
As a result, the Department is invoiced on a continuous basis based on the companies’ payment schedules, a maximum of Four Hundred, Forty Dollars ($440.00) an hour for
3.3.3.3. Staff Report – Resolution to Continue Use of Investigation Services for Liebert Cassidy Whitmore and JL Group, LLC
April 15, 2025
Liebert Cassidy Whitmore and Four Hundred, Fifty Dollars ($450.00) an hour for JL Group, LLC.
A new Resolution is required to continue the use of such services for both 2024-2025 and 2025-2026 Fiscal Years. The City Manager’s authority has surpassed the dollar amount of the 2024-2025 budget for Liebert Cassidy Whitmore and the previous Resolution from the Human Resources Department is no longer valid due to the surpassing.
In addition to the reinstatement of Liebert Cassidy Whitmore’s contract, the instatement of JL Group, LLC. as a new contracted vendor will assist the Human Resources Department further with more comprehensive investigative services.
FISCAL IMPACT
The continued use of such contracted services shall have a moderate impact to the City’s General Fund, specifically 1001-560-000-4266 (Human Resources – Contract Services), for the remainder of Fiscal Year 2024-2025 and its continuation into Fiscal Year 2025-2026.
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution to continue such investigative and legal services.
DONALD J. GRADY
HUMAN RESOURCES DEPARTMENT
APPROVED FOR FORWARDING:
WILLIE A. HOPKINS, JR.
CITY MANAGER
RESOLUTION NO.___________________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ENTER INTO INVESTIGATIVE,
LEGAL, AND PROFESSIONAL SERVICE AGREEMENTS WITH LIEBERT
CASSIDY WHITMORE AND JL GROUP, LLC, FOR PROVISION OF
ADMINISTRATIVE INVESTIGATION SERVICES ON AN “AS-NEEDED” BASIS FOR FISCAL YEARS 2024-2025 AND 2025-2026
WHEREAS, Section 702 of the Compton City Charter authorizes the City Council to contract with outside attorneys to assist the City Attorney with professional legal services including ongoing legal advice and in the handling of various complex legal matters of the City; and
WHEREAS, historically, the City of Compton has retained the services of various law firms to assist the Office of the City Attorney with specific cases and in specialized areas of the law; and
WHEREAS, the City has identified the need to secure expert transactional advisory litigation support services to assist the City on an “as-needed” basis with specialized projects such as conflict of interest matters, municipal labor and employment practices, labor negotiations, administrative and municipal hearings, and investigation services; and
WHEREAS, the Human Resources Department is often tasked with the responsibility of administrative investigations to be conducted; and WHEREAS, depending on the nature and complexity of the claim or matter to be investigated, the City may have Department staff conduct the investigation or employ an outside/external investigator; and
WHEREAS, Department staff solicited proposal/quotes for provision of administrative investigation services and received proposals from Liebert Cassidy Whitmore and JL Group, LLC; and
WHEREAS, both Liebert Cassidy Whitmore and JL Group, LLC offer specialized administrative and workplace investigations, thus Department staff recommend contracting with both firms based on availability and complexity of issues involved; and
WHEREAS, funds for these services, if and when utilized, are available in the 2024-2025 and 2025-2026 Fiscal Year budgets.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. That the City Manager, on the advice and approval of the Legal Division, is hereby authorized to enter into a professional service agreement with Liebert Cassidy Whitmore and JL Group, LLC to provide expert impartial fact-finding administrative investigations for the City on an “as-needed” basis for the remainder of Fiscal Year budget 2024-2025 and continuation into Fiscal Year budget 2025-2026.
Section 2.That legal services performed pursuant to the referenced legal agreement shall be paid from account number 1001-560-000-4266 (Human Resources – Contract Services); in amounts not to exceed that which is allocated in the 2024-2025 and 2025-2026 Fiscal Year budgets of the Human Resources Department.
Section 3. That the hourly rates shall not exceed Four Hundred, Forty Dollars ($440.00) an hour for Liebert Cassidy Whitmore; that the hourly rates shall not exceed Four Hundred, Fifty Dollars ($450.00) an hour for JL Group, LLC.
Section 4.That a duly certified copy of this Resolution shall be delivered to the offices of the City Manager, City Controller, Legal Division, City Clerk, and Human Resources.
Section 5. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
Resolution No. ______________
ADOPTED this _______ day of ___________, 2025.
_______________________________
EMMA SHARIF
MAYOR OF THE CITY OF COMPTON
ATTEST:
___________________________________
SATRA D. ZURITA
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON )
I, Satra D. Zurita, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the mayor and attested by the City Clerk at a regular meeting thereof, held on this _______ day of _______________, 2025.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
___________________________________
SATRA D. ZURITA
CITY CLERK OF THE CITY OF COMPTON
AGREEMENT FOR SPECIAL SERVICES
This agreement is entered into between the law firm of LIEBERT CASSIDY WHITMORE, A Professional Corporation (“Attorney”), and the CITY OF COMPTON, A Municipal Corporation (“City”).
1. Conditions
This agreement will not take effect, and Attorney will have no obligation to provide services, until City returns a properly signed and executed copy of this Agreement.
2. Attorney’s Services
Attorney agrees to provide City with consulting, representational, and legal services pertaining to human resources matters, employment relations matters, including investigation services, representation in negotiations, and in administrative and court proceedings, as requested by City or otherwise required by law.
3. Fees, Costs, Expenses
City agrees to pay Attorney the sums billed monthly for time spent by Attorney in providing the services, including reasonable travel time.
The current range of hourly rates for Attorney time is from Two Hundred, Seventy, to Four Hundred, Forty Dollars ($270.00-$440.00). See Schedule I attached for full Fee Schedule. Attorney reviews its hourly rates on an annual basis, and if appropriate, adjusts them effective July 1. Attorney will provide the City with written notification of any adjustment in the range of rates. Attorney bills its time in minimum unites of one-tenth of an hour.
For Litigation Matters
See Schedule II attached for a description of Attorney’s Litigation and E-Discovery Management.
Other Expenses
City agrees to reimburse Attorney for necessary costs and expenses incurred by Attorney on behalf of City. Attorney bills photocopying charges at Fifteen Cents ($0.15) per page.
See Schedule I attached.
Payment by City against monthly billings is due upon receipt of statements, and is considered delinquent if payment is not received within thirty (30) days of the date of the invoice.
4. Professional Liability Insurance
The California Business & Professions Code requires us to inform you whether we maintain errors and omissions insurance coverage applicable to the services to be rendered to you. We hereby confirm that the firm does maintain such insurance coverage.
5. Arbitration of Professional Liability or Other Claims Disputes
If a dispute between City and Attorney arises over fees charged for services, the controversy will be submitted to binding arbitration in accordance with the rules of the California State Ba Fee Arbitration Program, set forth in California Business and Professions Code, sections 6200 through 6206. The arbitrator or arbitration panel shall have the authority to award to the prevailing party attorneys’ fees, costs, and interest incurred. Any arbitration award may be served by mail upon either side and personal serviced shall not be required.
If a dispute between City and Attorney arises over any other aspect of the attorney-client relationship, including, without limitation, a claim for breach of professional duty, that dispute will also be resolved by arbitration. It is understood that any dispute as to any alleged branch of professional duty (that is, as to whether any legal services rendered under this agreement were allegedly unnecessary, unauthorized, omitted entirely, or were improperly, negligently or incompetently rendered) will be determined by submission to arbitration as provided by California law, and not by a lawsuit or resort to court process except as California law provides for judicial review of arbitration proceedings. Both parties to this agreement, by entering into it, are giving up their constitutional right to have any such dispute decided in a court of law before a jury, and instead are accepting the use of arbitration. Each party is to bear its own attorneys’ fees and costs.
6. File Retention
After our services conclude, Attorney will, upon City’s request, deliver the file for the matter to City, along with any funds or property of City’s in our possession. If City requests the file for the matter, Attorney will retain a copy of the file at the City’s expense. If City does not request the file for this matter, we will retain it for a period of seven (7) years after this matter is closed. If City does not request delivery of the file for this matter before the end of the seven (7) year period, we will have no further obligation to retain the file and may, at our discretion, destroy it without further notice to City. At any point during the seven (7) year period, City may request delivery of the file.
7. Assignment
This Agreement is not assignable without the written consent of City.
8. Independent Contractor
It is understood and agreed that Attorney, while engaged in performing the terms of this Agreement, is an independent contractor and not an employee of City.
9. Authority
The signators to this Agreement represent that they hold the positions set forth below their signatures, and that they are authorized to execute this Agreement on behalf of their respective parties and to bind their respective parties hereto.
10. Term
This Agreement is effective July 1, 2024, ongoing and may be modified by mutual agreement of the parties. This agreement shall be terminable by either party upon thirty (30) days written notice.
LIEBERT CASSIDY WHITMORE, CITY OF COMPTON,
A Professional Corporation A Municipal Corporation
By: ____________________________ By: ____________________________ Name: Melanie L. Chaney Name: Donald J. Grady
Title: Co-Managing Partner Title: Human Resources Director Date: ___________________________ Date: ___________________________ Approved as to:
By: ____________________________ By: ____________________________ Name: Willie A. Hopkins, Jr. Name: Legal Division
Title: City Manager
Date: ___________________________ Date: ___________________________ ATTEST:
By: ___________________________
Name: Satra D. Zurita
Title: City Clerk
Date: __________________________
June 17, 2025
TO: MAYOR AND COUNCIL MEMBERS
FROM: CITY MANAGER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON ADOPTING THE BUDGET FOR FISCAL YEAR 2025-2026
SUMMARY
The Fiscal Year 2025/2026 Proposed Budget for the City of Compton is hereby transmitted to the City Council for review and adoption. The estimated revenues have been supplied by the City Controller. Available Special Funds Fund Balances from prior year surplus have also been provided by the City Controller and utilized to balance the Budget. The projected expenditures recommended by the City Manager are in balance with the Controller’s estimated revenue. The City Manager and City Controller, along with all the Budget Team members, have worked diligently to balance this proposed Budget.
This balanced Budget is recommended to the Mayor & City Council for approval.
BACKGROUND
The Compton City Charter, Section 1407, requires that City Manager present an Annual Budget for adoption by City Council on or before June 30, 2025. A Public Hearing (June 3, 2025) was held to discuss the proposed Fiscal Year 2025-2026 Budget. Four City Council Budget Workshop discussions were scheduled on the City Council Agenda and held on February 12, 2025, February 13, 2025, February 19, 2025 and February 20, 2025.
STATEMENT OF THE ISSUE:
The City organizes the Annual Budget by Fund and by Department. The Citywide Fiscal Year 2025-2026 Proposed Budget, which includes combined (all) Funds and Departments, totals $262,319,033. Expenditures are offset by City-wide revenues and Special Funds Fund Balances totaling $262,319,033. The City-wide Budget includes the General Fund. The General Fund, which includes the Measure “P” 1% Sales Tax, is the fund which provides for most of the typical public services which Compton citizens rely on, such as Law Enforcement, Fire Protection, Recreation, Street Repair, and General City Administration. The General Fund Budget equals: $75,127,598. Measure P General Fund Resources equal: $14,585,901. All General Fund Resources (inclusive of Measure P) equal $89,713,499.
4.4. Staff Report – Resolution Adopting FY 2025-26 Budget June 17, 2025
Quarterly Budget Review, Reporting & Compliance
Ongoing monitoring of revenue and expenditures will result in Quarterly Budget review and appropriate adjustments. The City Manager and City Controller intend to conduct a “Mid-year” Budget Review and Workshops with the City Council, updating revenue estimates and expenditures.
FINANCIAL IMPACT
RECOMMENDATION
Staff recommends that the Council accept the proposed 2025/2026 City of Compton Budget for public comments, revisions, and adoption.
WILLIE A. HOPKINS JR.
CITY MANAGER
PROPOSED BUDGET
FY 2025-2026
CITYWIDE BUDGET
TOTAL EXPENSES $262,319,033
REVENUES & Prior Year Fund Balance/Retained
Earnings
$262,319,033
TOTAL GENERAL FUND BUDGET, Inclusive of Measure P
EXPENSES $ 89,713,499
REVENUES $ 89,713,499
RESOLUTION NO. __________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON ADOPTING THE BUDGET FOR FISCAL YEAR 2025-2026
WHEREAS, the Compton City Charter Section 1407 requires that an annual Budget be presented and adopted by City Council on or before June 30th; and WHEREAS, The Compton City Charter, Section 1407, requires that City Manager present an Annual Budget for adoption by City Council on or before June 30, 2025. A Public Hearing (June 3, 2025) was held to discuss the proposed Fiscal Year 2025- 2026 Budget. Four City Council Budget Workshop discussions were scheduled on the City Council Agenda and held on February 12, 2025, February 13, 2025, February 19, 2025 and February 20, 2025; and
WHEREAS, the City Council has fixed the time and place for holding a public Hearings on the proposed 2025-2026 Fiscal Year Budget, has caused notice of said Hearings to be published, and the proposed 2025-2026 Fiscal Year Budget has been available for inspection at the City Clerk’s Office consistent with Compton City Charter, Section 1405; and
WHEREAS, following notice duly given, the City Council held a Public Hearing on June 3, 2025, regarding the adoption of the Budget for Fiscal Year 2025-2026 and considered all information, documents and comments presented.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the proposed Fiscal Year 2025-2026 Annual Budget of the City of Compton, as set forth in the proposed Annual Budget document, including amendments, approved by the City Council as reflected in this meeting’s minutes, is hereby adopted pursuant to Section 1407 of the Compton City Charter and made effective July 1, 2025.
SECTION 2. That the financial impact of the Fiscal Year 2025-2026 Annual Budget is as follows:
SECTION 3. That a certified copy of this Resolution, along with this meeting’s approved minutes evidencing City Council adopted amendments, if any, shall be attached to the Fiscal Year 2025-2026 Annual Budget and the same shall be filed with the City Manager, City Controller and City Treasurer and that a copy of said Resolution and Annual Budget shall be placed and shall remain on file in the office of the City Clerk.
-185-
SECTION 4. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
PROPOSED BUDGET
FY 2025-2026
CITYWIDE BUDGET
TOTAL EXPENSES $262,319,033
REVENUES & Prior Year Fund Balance/Retained
Earnings
$262,319,033
TOTAL GENERAL FUND BUDGET, Inclusive of Measure P
EXPENSES $ 89,713,499
REVENUES $ 89,713,499
Resolution No. ______________
ADOPTED this __________ day of ___________, 2025.
_______________________________
EMMA SHARIF
MAYOR OF THE CITY OF COMPTON
ATTEST:
___________________________________
SATRA D. ZURITA
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Satra D. Zurita, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council, signed by the Mayor, and attested by the City Clerk at a regular meeting thereof held on the ______ day of _____________, 2025.
That said Resolution was adopted by the following vote:
AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
ABSTAINS: COUNCIL MEMBERS-
____________________________________
SATRA D. ZURITA
CITY CLERK OF THE CITY OF COMPTON
-186-
June 17, 2025
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY CONTROLLER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COMPTON TO AUTHORIZE AN AMENDMENT TO THE CITY
CONTROLLER’S FY2024-2025 BUDGET, AND TO AUTHORIZE THE CITY
MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH WEAVER AND TIDWELL, LLP ($164,550) FOR PROJECT
MANAGEMENT SERVICES FOR THE IMPLEMENTATION OF THE CITY’S
ENTERPRISE RESOURCE PLANNING AND PAYROLL SOFTWARE, AND TO
ISSUE A PURCHASE ORDER IN THE AMOUNT OF ONE HUNDRED SIXTY- FOUR THOUSAND FIVE HUNDRED FIFTY DOLLARS ($164,550) TO
WEAVER AND TIDWELL, LLP.
SUMMARY
Staff is requesting that the City Council consider adopting a Resolution authorizing the City Manager to enter into a professional services agreement with Weaver and Tidwell, LLP to provide Project Management Services for the implementation of the City’s Enterprise Resource Planning and Payroll Software ($164,550), and to issue a Purchase Order for the amount of One Hundred Sixty-Four Thousand Five Hundred Fifty Dollars ($164,550), for services to be provided.
BACKGROUND
The City currently uses the ONESolution module system, which is a software provided by CentralSquare Technologies LLC, to electronically record and maintain its financial accounting data. The City’s departments rely heavily on this finance software in their operations daily. Such operations include making payments to vendors, recording financial information, providing financial reports to governmental auditors and decision makers, responding to public requests, and many other facets of the City’s daily operations. Currently, the City’s financial software is maintained by CentralSquare Technologies, LLC. Further, the City’s Payroll software is currently provided by ADP, and earlier this year, with the adopted Resolution #26,238, Human Resources Department received approval to hire Neogov for Human Resources and Payroll software.
On July 23, 2024, Resolution #26,096, authorized the City Manager to enter into a new agreement with CentralSquare Technologies LLC for the maintenance of the City’s financial module. The maintenance process will provide upgrades to some of the current software, as well as implement new software that is more modern, which will increase communication between the Controller’s department and other City departments related to the City’s Account Receivables, Fixed Assets, and Project Ledgers. With the use of the
5.5.5.5.5. Staff Report – Resolution Authorizing Professional Agreement Weaver and Tidwell, LLP (Project Manager for Enterprise Resource Planning Software Implementation- Financial Software and Payroll Software)
June 17, 2025
Page. 2
OneSolution software, the Controller’s department oversees the City’s financial management and provides detailed reports for City staff, residents, and stakeholders.
Information generated from the OneSolution software assist the City with budgeting and forecasting by providing data for financial analysis and internal control monitoring, which provides financial information for the City’s decision makers. The City’s software has not been upgraded since 1998.
STATEMENT OF ISSUE
The City’s financial software is pivotal for the daily operations of the City Controller’s office, as well as for deliverables to other City departments. The implementation of the upgraded and newer software will help staff to be more efficient, provide timely and more detailed reports, and increase effectiveness in responding to public request. The process of implementing a financial software mainframe can be complexed and time consuming. The implementation process can take over a year. Staff is aware of the potential challenges, attention to detail, and the time needed to implement and test the financial software, and believes it is in the best interest of the City to hire a Project Manager to ensure the software implementation will meet the City’s needs and expectations. The cost of services for the project management for the implementation of the Financial software is estimated at $140,730. The estimated cost to help with the implementation of the Payroll software is $23,820, therefore the total being requested is $164,550.
The scope of work for the Project Manager will include the following:
Mitigating risks posed by the software provider by monitoring progress and managing scope changes.
Provide a team with specialized knowledge and experience that makes sure the implementation is in alignment with organizational goals and vendor promises, specific to functionality, timing, and design.
Enhance efficiency and accountability of the software vendor. This places the burden on the Project Manager and team; which allows the City to focus more on resolution and the end product.
Oversees project coordination and smooth implementation. Conducts risk management and gap analyses; taking current state and future state processes in consideration.
Ensures effective change management processes.
Offers continuous monitoring, reporting, support, and training. On-going communication with the software provider.
Be a mediator between the City and the software provider to ensure integrity and ethics are upheld.
Staff Report – Resolution Authorizing Professional Agreement Weaver and Tidwell, LLP (Project Manager for Enterprise Resource Planning Software Implementation- Financial Software and Payroll Software)
June 17, 2025
Page. 3
Due to the demand of time, knowledge, communication, and attention to detail needed to implement the City’s financial software, staff believes it will be difficult for the City staff to solely take on this burden. With the shortage of staff, the day-to-day operations are already challenging. This project requires a specific level of knowledge and dedication to properly implement, and it may be difficult to assign a particular department or person to be responsible for the implementation of the City’s financial software, while other pressing City Controller department deliverables are pending, simultaneously.
In August 2024, City staff released a Request for Proposal (RFP) for Project Management Services for Enterprise Resource Planning (ERP) Software Implementation. The RFP was published in the Compton Bulletin newspaper, the City’s website, the California Society of Municipal Finance Officers (CSMFO) RFP website, which is accessed by CSMFO’s commercial vendors actively providing financial and software services to municipalities in California, and published on PlanetBids, which is a web-enabled procurement and electronic bidding system. The City received six responses. The respondents to the Project Management ERP Software Implementation RFP were Akkodis (formerly Modis), Avero Advisors, BerryDunn, Executive Option, V2 Tech, and Weaver and Tidwell LLP.
Staff conducted an apples-to-apples comparison. The apples-to-apples comparison weighed the value of the provided service and the cost. During the interviews, the candidates were allowed to present demonstrations that elaborated on their capabilities and strategy for managing the implementation of the financial software.
(Please see Attachment “A” for comparisons)
(Please see Attachment “B” for their pricing model)
After reviewing the proposals and conducting the interviews, staff believes Weaver and Tidwell LLP provides the lowest and most responsible bid for managing the implementation of the City’s financial software. Weaver and Tidwell LLP is one of the largest independent CPA firms in the Southwest. Their knowledge of Accounting, particularly in Government Accounting, will provide a perspective of what is needed in the City’s functionality.
Optionally, Weaver and Tidwell LLP can provide Project Manager services for the implementation of software related to the functions of Human Resources and Payroll. If the City chooses to request these services, the estimated additional costs for these services are as follows:
- Human Resources (approximately $34,000, 164 hours of service estimated) - Payroll (approximately $23,820, 112 hours of service estimated) Staff is recommending that the City consider this option for Payroll software implementation Staff Report – Resolution Authorizing Professional Agreement Weaver and Tidwell, LLP (Project Manager for Enterprise Resource Planning Software Implementation- Financial Software and Payroll Software)
June 17, 2025
Page. 4
services. The City’s Payroll software needs an upgrade as well. Project management services for the implementation of Human Resource software is under consideration, but no decision has been made at this time. Currently, the City’s Payroll software is provided by ADP. Adopted Resolution #26,238, gave approval to hire Neogov for Human Resources and Payroll software.
(Please see attachment C for what the Human Resource and Payroll services will consist of and the pricing estimates)
FISCAL IMPACT
For Weaver and Tidwell LLP to provide project management services for the implementation of the City’s Financial and Payroll software, the estimated amount will be $164,550. A budget amendment to the FY2024-2025 City Controller’s Department Budget is being requested for the following:
Appropriation from:
General Fund, Fund Balance for $164,550.
To:
Increase in Expenditure appropriations:
Account Code Account Name Amount
1001-650-000-4222 General Fund, Controller’s Dept $164,550 Computer Software
Staff is requesting that City Council authorize the City Manager to amend the Controller’s Department FY2024-2025 budget, enter into a professional agreement with Weaver and Tidwell LLP for Project Management Services for Enterprise Resource Planning Software Implementation, and to issue a Purchase Order in the amount of One Hundred Sixty-Four Thousand Five Hundred Fifty Dollars ($164,550) for services to be provided by Weaver and Tidwell, LLP from the following account:
Account Code Account Name Amount
1001-650-000-4222 General Fund, Controller’s Dept $164,550 Computer Software
ALTERNATIVE
Staff Report – Resolution Authorizing Professional Agreement Weaver and Tidwell, LLP (Project Manager for Enterprise Resource Planning Software Implementation- Financial Software and Payroll Software)
June 17, 2025
Page. 5
Not hiring a Project Manager for the implementation of the City’s financial software will pass the responsibility to City staff solely. As previously mentioned, the financial software implementation process can be complexed and time demanding. For staff to perform the duties of the Project Manager, facets of the day-to-day operations may be affected, or cause delays in other City Controller department deliverables.
RECOMMENDATION
Staff recommends the City Council to adopt the attached Resolution to authorize the City amend the Controller’s Department FY2024-2025 budget, enter into a professional agreement with Weaver and Tidwell, LLP, and also authorize the City Manager to issue a Purchase Order in the amount of One Hundred Sixty-Four Thousand Five Hundred Fifty Dollars ($164,550) for Financial software and Payroll services to be provided by Weaver and Tidwell LLP.
SHARON RAHBAN NAVIZADEH
CITY CONTROLLER
APPROVED FOR FORWARDING:
WILLIE A. HOPKINS JR.
CITY MANAGER
RESOLUTION NO. __________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COMPTON AUTHORIZING THE CITY MANAGER TO ENTER INTO A
PROFESSIONAL SERVICES AGREEMENT WITH WEAVER AND TIDWELL, LLP ($164,550) FOR PROJECT MANAGEMENT SERVICES FOR THE
IMPLEMENTATION OF THE CITY’S ENTERPRISE RESOURCE PLANNING
AND PAYROLL SOFTWARE, AND TO ISSUE A PURCHASE ORDER IN THE
AMOUNT OF ONE HUNDRED SIXTY-FOUR THOUSAND FIVE HUNDRED
FIFTY DOLLARS ($164,550) TO WEAVER AND TIDWELL, LLP.
WHEREAS, the City currently uses the ONESolution module system, which is a software provided by CentralSquare Technologies LLC, to electronically record and maintain its financial accounting data. ADP is currently the provider for the City’s Payroll software ; and
WHEREAS, the City’s departments rely heavily on this finance software in their operations daily. Such operations include making payments to vendors, recording financial information, providing financial reports to governmental auditors and decision makers, responding to public requests, and many other facets of the City’s daily operations; and
WHEREAS, Resolution #25,124, authorized the City Manager to enter into an agreement with CentralSquare (Superion, LLC) for the maintenance of the City’s financial module; and
WHEREAS, on July 31, 2024, that agreement expired and on July 23, 2024, Resolution #26,096, authorized the City Manager to enter into a new agreement with CentralSquare Technologies LLC for the maintenance of the City’s financial module. The maintenance process will provide upgrades to some of the current software, as well as implement new software that is more modern, which will increase communication between the Controller’s department and other City departments related to the City’s Account Receivables, Fixed Assets, and Project Ledgers ; and
WHEREAS, with the use of the OneSolution software, the Controller’s department oversees the City’s financial management and provides detailed reports for City staff, residents, and stakeholders. Information generated from the OneSolution software assist the City with budgeting and forecasting by providing data for financial analysis and internal control monitoring, which provides financial information for the City’s decision makers.
WHEREAS, the City’s financial software is pivotal for the daily operations of the City Controller’s office, as well as for deliverables to other City departments. The implementation of the upgraded and newer software will help staff to be more efficient, provide timely and more detailed reports, and increase effectiveness in responding to public request; and
WHEREAS, the process of implementing a financial software mainframe is complexed and time consuming. The implementation process can take over a year; and
WHEREAS, staff is aware of the potential challenges, attention to detail, and the time needed to implement the financial software, and believes it is in the best Resolution No. _______
2 interest of the City to hire a Project Manager to ensure the software will have the capabilities to meet the City’s needs and expectations; and WHEREAS, due to the demand of time, knowledge, communication, and attention to detail needed to implement the City’s financial software, staff believes it will be difficult for the City staff to solely take on this burden. With the shortage of staff, the day-to-day operations are already challenging; and
WHEREAS, this project requires a specific level of knowledge and dedication to properly implement, and it may be difficult to assign a particular department or person to be responsible for the implementation of the City’s financial software; and WHEREAS, in August 2024, City staff released a Request for Proposal (RFP) for Project Management Services for Enterprise Resource Planning (ERP) Software Implementation. The RFP was published in the Compton Bulletin newspaper, the City’s website, the California Society of Municipal Finance Officers (CSMFO) RFP website, which is accessed by CSMFO’s commercial vendors actively providing financial and software services to municipalities in California, and published on PlanetBids, which is a web-enabled procurement and electronic bidding system. The City received six responses. The respondents to the Project Management ERP Software Implementation RFP were Akkodis (formerly Modis), Avero Advisors, BerryDunn, Executive Option, V2 Tech, and Weaver and Tidwell LLP; and WHEREAS, staff conducted an apples-to-apples comparison. The apples-to- apples comparison weighed the value of the provided service and the cost. During the interviews, the candidates were allowed to present demonstrations that elaborated on their capabilities and strategy for managing the implementation of the financial software; and
WHEREAS, after reviewing the proposals and conducting the interviews, staff believes Weaver and Tidwell LLP provides the lowest and most responsible bid for managing the implementation of the City’s financial software; and WHEREAS, Weaver and Tidwell LLP is one of the largest independent CPA firms in the Southwest. Their knowledge of Accounting, particularly in Government Accounting, will provide a perspective of what is needed in the City’s functionality; and WHEREAS, the estimated cost for Weaver and Tidwell LLP to provide project management services for the implementation of the City’s financial software is $140,730; and
WHEREAS, optionally, Weaver and Tidwell LLP can provide Project Manager services for the implementation of software related to the functions of Human Resources and Payroll. The optional services and costs are as follows:
- Human Resources (approximately $34,000, 164 hours of service estimated) - Payroll (approximately $23,820, 112 hours of service estimated) WHEREAS, staff is recommending that the City consider this option for project management of the City’s Payroll software implementation. With the adoption of Resolution #26,238, the Human Resources Department received approval to hire Neogov for Human Resources and Payroll software. The City’s Payroll software needs an upgrade as well, and the project management services of Weaver and Tidwell LLP will be a great attribute in facilitating the proper implementation.
Resolution No. _______
3 WHEREAS, for Weaver and Tidwell LLP to provide project management services for the implementation of the City’s Financial and Payroll software, the estimated amount will be $164,550. A budget amendment to the FY2024-2025 City Controller’s Department Budget is being requested for the following:
Appropriation from:
General Fund, Fund Balance for $164,550.
To:
Increase in Expenditure appropriations:
Account Code Account Name Amount
1001-650-000-4222 General Fund, Controller’s Dept
$164,550 Computer Software
WHEREAS, alternatively, not hiring a Project Manager for the implementation of the City’s financial software will pass the responsibility to City staff solely. As previously mentioned, the financial software implementation process can be complexed and time demanding. For staff to perform the duties of the Project Manager, facets of the day-to-day operations may be affected, or cause delays in other City Controller department deliverables; and
WHEREAS, staff recommends the City Council to adopt the attached Resolution to authorize the City amend the Controller’s Department FY2024-2025 budget, enter into a professional agreement with Weaver and Tidwell, LLP, and also authorize the City Manager to issue a Purchase Order in the amount of One Hundred Sixty-Four Thousand Five Hundred Fifty Dollars ($164,550) for Financial software and Payroll services to be provided by Weaver and Tidwell LLP; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the City Manager is hereby authorized to enter into a multi- year professional services agreement with Weaver and Tidwell, LLP to provide Project Management Services for the implementation of the City’s Enterprise Resource Planning and Payroll Software (Financial Software $140,730, Payroll Software $23,820) for an estimated total of ($164,550).
SECTION 2. That the City Manager is hereby authorized to amend the Controller’s Department FY2024-2025 budget to appropriate funds from Fund Balance ($164,550) to increase in expenditure appropriations as follows:
Account Code Account Name Amount
1001-650-000-4222 General Fund, Controller’s Dept $164,550 Computer Software
SECTION 3. That a Purchase Order is authorized to be issued in the amount of One Hundred Sixty-Four Thousand Five Hundred Fifty Dollars ($164,550) for services to be provided by Weaver and Tidwell, LLP from the following account:
Account Code Account Name Amount
1001-650-000-4222 General Fund, Controller’s Dept $164,550 Computer Software
SECTION 4. That a duly copy of the Resolution shall be filed with the offices of the City Manager, City Clerk, City Attorney, and City Controller.
Resolution No. _______
4 SECTION 5.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this ____________ day of _____________, 2025.
_______________________________
EMMA SHARIF
MAYOR OF THE CITY OF COMPTON
ATTEST:
_______________________________
SATRA. D. ZURITA
CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON )
I, Satra D. Zurita, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on this ___________ day of ________________, 2025.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCILMEMBERS -
NOES: COUNCILMEMBERS -
ABSTAIN: COUNCILMEMBERS -
ABSENT: COUNCILMEMBERS -
___________________________________
SATRA D. ZURITA
CITY CLERK OF THE CITY OF COMPTON
Firm name Staffing Hours Services Other Fees Travel Total Fee AVERO Advisors
VP Client Success- Estimated Hours (92)- $250 per hour
Director Client Success- Estimated Hours (256)- $225 per hour Project Manager- Estimated Hours (528)- $200 per hour
Consultant-Estimated Hours (928)- $175 per hour
Project's estimated costing for Finance implementation Services Only:
Project Management- Project Planning ($23,400)
Implementation Planning- Strategic Action Plan and Implementation Kick-off ($21,800)- Change Management Support (12,450) Implementation Management- Configuration Management ($82,450)- System Testing Management ($64,050)- Training Support ($44,400)- Standard Operating Procedures ($44,400)- Go-Live Support ($46,400)- Post Go-Live Support ($29,000) *New Client Discount of .......... $18,418
No other fees listed $349,933.00
Executive Options
Project Manager- Estimated Hours (1560)- $175 per hour
Project Admin.- Estimated Hours (1040)- $85 per hour
Project Manager ($273,000)Project Administration ($88,400) Month 1: Initial Planning and Stakeholder EngagementMonth 2: Scope Definition and Feasibility StudyMonth 3: Budgeting and Resource PlanningMonth 4: Vendor Engagement and Procurement PlanningMonth 5: Detailed Cost Estimation and Financial PlanningMonth 6: Project Plan DevelopmentMonth 7-8: System Design and Customization PlanningMonth 9-10: Configuration, Integration, and Data Migration PlanningMonth 11: Testing and Training Plan DevelopmentMonth 12: Final Review and Presentation of Proposed Costs Contigency Fee ($90,350)
Finance Services Only-$67,762.50
Additional for HR and Payroll Services- $173,440
$519,512.50
Attachment A
Project Manager ERP Implementation
OptionalServices(Not included)
Project's estimated costing for HR and Payroll implementation Services Only:
Project Management- Project Planning ($11,000)
Implementation Planning- Strategic Action Plan and Implementation Kick-off ($2,700)- Change Management Support ($2,700) Implementation Management- Configuration Management ($25,900)- System Testing Management ($22,200)- Training Support ($21,700)- Standard Operating Procedures ($21,700)- Go-Live Support ($14,300)- Post Go-Live Support ($23,300) *New Client Discount of .......... $7,275
If Payroll and HR services are needed:
Additional Project Manager Hours - Estimated (1000)- $175 per hour Additional Project Admin Hours- Estimated (650)- $85 per hour ERP Technical Lead- Estimated hours (1024)- $165 per hour ERP Implementation Function/Config Lead- HR services-Estimated hours (1280)- $180 per hour ERP Implementation Function/Config Lead- Payroll services-Estimated hours (1280)- $180 per hour Change Mgt. and Training Lead- Estimated hours (400)- $160 per hour V2 Tech
Project Manager (1,600 hours @ $190 per hour)IT Support Staff (1,600 hours @ $160 per hour) Project Manager ($304,000)IT Support Staff ($256,000)
Phase 1: Planning and Requirement Gathering: (1 to 2 months) Phase 2: Vendor Selection and procurement. (As we selected already just 1 week) Phase 3: System design and Configuration (2 to 3 months) Phase 4: Testing and Quality Assurance (2 to 3 months) Phase 5: Training and Change Management (1 to 2 months) Phase 6: Go-Live and Post Implementation support (1 to 2 months) No other fees listed Estimated $30,000 $605,000.00
BerryDunn
Project's estimated costing for Finance implementation Services Only:
- Project Planning and Intergration ($250 per hour)- Project Management Finance Enterprise ($250 per hour)- Contigency Hours ($250 per hour) Project's estimated costing for Finance implementation Services Only:
- Project Planning and Integration ($37,500)- Project Management Finance Enterprise ($450,000) Contingency Hours ($60,000) Estimated 15 Trips($30,750) $578,250.00 Weaver
Project's estimated costing for Finance implementation Services Only:
- Partners (30 hours @ $410 per hour)- Managers (104 hours @ $250 per hour)- Supervisor Staff (224 hours @ $210 per hour)- Staff (224 hours @ $160 per hour) Project's estimated costing for Finance implementation Services Only:
- 12 months estimated implementation time. Additional fees will incur after 12 months.- Project Management- Security Admistration- Role Security definition- Requirement definition process- Application functionality/requirements implemeted- Post-implementation operationsl plans for security administration- Change Management- Hypercare processes- Go live approval No other fees listed Estimated 6 trips($19,850) $140,730.00 Akkodis Project Manager (2000 hours @ $149 per hour)
Project Manager ($298,000)
Program Management- Overseeing multiple projects to ensure alignment with strategic objectives and optimal resource allocation.- Planning, organizing, and controlling individual projects to achieve desired outcomes.
Skill Bundling- Combining complementary skills and expertise to deliver comprehensive solutions.
No other fees listed No Travel Cost $298,000.00No other optional services listed No other optional services listed
Should the City be interested in discussing our sercies to support the implementation of HR and Payroll system, we would welcome the opportunity ot provide separate pricing to support planning efforts. Estimated time to implement these systems would be 9-12 months.
Functional Consultant (100 hours @ $150 per hour)
Attachment C
As requested, our estimate for the human resources and payroll implementation are as follows:
Human Resources: $34,000 (164 Hours)
Payroll: $23,820 (112 Hours)
The project will consist of the three phases:
Phase 1: Requirements Gathering
Phase 2: Implementation
Phase 3: Training & Handover
Pricing Assumptions:
For the payroll implementation, the project management quote may be impacted by the:
oComplexity of payroll data (e.g., multiple pay structures, benefits, deductions).
oIntegrations with financial systems, time tracking systems, and other relevant applications.
oCustomizations or unique payroll processes that need to be accommodated.
oTypes or number of payroll reports needed and frequency of reporting. For the HR Implementation, the project management quote may be impacted by the:
oRequirements from different user groups (e.g., HR staff, managers, employees).
oIntegrations with payroll, benefits administration, and other relevant systems.
oSpecific employment laws and regulations that must be adhered to. oCustomizations or unique HR processes that need to be accommodated. oTypes or number of HR reports and analytics needed, and frequency of reporting.
The implementation is to shift from a legacy system and process to a new application; does not include process redesign.
Our pricing anticipated a three (3) month implementation timeline. If the implementation timeline exceeds three (3) months, additional fees will be incurred. This does not include out of pocket expenses.
The assumptions included in the proposal are also relevant to these implementations.
Brett Nabors
Partner, Advisory - Consulting
Weaver
O: 512-609-1947 E: [email protected]
A: 1601 South MoPac Expressway, Suite D250, Austin, TX 78746 W: weaver.com
June 17, 2025
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY CONTROLLER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COMPTON AUTHORIZING THE CITY MANAGER TO AMEND THE
CONTROLLER’S DEPARTMENT FY2024-2025 BUDGET, AND TO ISSUE
AN ADDITIONAL PURCHASE ORDER OF TWENTY-THREE THOUSAND
FOUR-HUNDRED SIXTEEN DOLLARS ($23,416) FOR EADIE AND
PAYNE LLP FOR PROVIDING NEEDED SERVICES BEYOND THE
TERMS OF THE AGREEMENT IN ASSISTING WITH THE PREPARATION OF THE FY2022-2023 AUDIT.
SUMMARY
Staff is requesting that the City Council consider adopting a Resolution authorizing the City Manager to issue a Purchase Order for Twenty-Three Thousand Four-Hundred Sixteen Dollars
($23,416) for Eadie and Payne LLP. for providing needed services for the City beyond the terms of the agreement.
BACKGROUND
In accordance to Section 1419 of the Compton City Charter, the employment of a qualified accountant at the beginning of each fiscal year, who shall examine the books, records, inventories and reports of all officers and employees who receive, handle or disburse public funds and of such other officers, employees and departments as the City Council may direct, is to be completed.
In June 2023, Resolution No. 25,856 authorized the City Manager to accept the proposal of the Independent Auditor, Eadie and Payne LLC., and enter into a contract to provide the necessary services.
(Please see Attachment A for the Professional Services Agreement notating the services to be provided.)
STATEMENT OF ISSUE
During the FY2022-2023 audit process, additional time and services beyond the agreement amount were needed. Eadie and Payne LLP extended their services to ensure
6.6.6.6. Staff Report – Resolution Authorizing Issuance of Purchase Order for Audit Services Provided Outside of the Agreement ($23,416)
Eadie and Payne, LLP
June 17, 2025
2 the City’s needs were met and for the FY2022-2023 audit to be completed with urgency.
Eadie and Payne LLP has notified the City of their cost for their extended services in amount of $23,416. On Monday, June 11, 2025, this item was brought before the Audit Committee, in which the Audit Committee gave its support. (Please see Attachment B for the breakdown of fees)
FISCAL IMPACT
A budget amendment to the FY2024-2025 City Controller’s Department Budget is being requested for the following:
Appropriation from:
General Fund, Fund Balance for $23,416.
To:
Increase in Expenditure appropriations:
Account Code Account Name Amount
1001-650-000-4266 General Fund, Controller’s Dept $23,416 Contract Services
Staff is requesting that City Council authorize the City Manager to amend the Controller’s Department FY2024-2025 budget, and authorize the City Manager to issue an additional Purchase Order for the amount of Twenty-Three Thousand Four-Hundred Sixteen Dollars ($23,416) for Eadie and Payne LLC. for providing needed services for the City beyond the terms of the agreement.
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution.
APPROVED FOR FORWARDING:
SHARON RAHBAN NAVIZADEH
CITY CONTROLLER FORWARDED TO CITY MANAGER
RESOLUTION NO. __________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COMPTON AUTHORIZING THE CITY MANAGER TO AMEND THE
CONTROLLER’S DEPARTMENT FY2024-2025 BUDGET, AND TO ISSUE AN
ADDITIONAL PURCHASE ORDER OF TWENTY-THREE THOUSAND FOUR- HUNDRED SIXTEEN DOLLARS ($23,416) FOR EADIE AND PAYNE LLP FOR
PROVIDING NEEDED SERVICES BEYOND THE TERMS OF THE AGREEMENT IN ASSISTING WITH THE PREPARATION OF THE FY2022-2023 AUDIT.
WHEREAS, in accordance to Section 1419 of the Compton City Charter, the employment of a qualified accountant at the beginning of each fiscal year, who shall examine the books, records, inventories and reports of all officers and employees who receive, handle or disburse public funds and of such other officers, employees and departments as the City Council may direct, is to be completed; and
WHEREAS, in June 2023, Resolution No. 25,856 authorized the City Manager to accept the proposal of the Independent Auditor, Eadie and Payne LLP, and enter into a contract to provide the necessary services; and WHEREAS, during the FY2022-2023 audit process, additional time and services beyond the agreement amount were needed. Eadie and Payne LLP extended their services to ensure the City’s needs were met and for the FY2022-2023 audit to be completed with urgency. Eadie and Payne LLP has notified the City of their cost for their extended services in amount of ($23,416); and
WHEREAS, a budget amendment to the FY2024-2025 City Controller’s Department Budget is being requested for the following:
Appropriation from:
General Fund, Fund Balance for $23,416.
To:
Increase in Expenditure appropriations:
Account Code Account Name Amount
1001-650-000-4266 General Fund, Controller’s Dept $23,416 Contract Services
WHEREAS, staff is requesting that City Council authorize the City Manager to amend the Controller’s Department FY2024-2025 budget, and authorize the City Manager to issue an additional Purchase Order for the amount of Twenty-Three Thousand Four-Hundred Sixteen Dollars ($23,416) for Eadie and Payne LLC. for providing needed services for the City beyond the terms of the agreement in assisting with the preparation of the FY2022-2023 audit.
WHEREAS, staff recommends the City Council to adopt the attached Resolution ; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the City Manager is hereby authorized to amend the Controller’s Department FY2024-2025 budget to appropriate funds from Fund Balance ($23,416) to increase in expenditure appropriations as follows:
Resolution No. _______
2 Account Code Account Name Amount
1001-650-000-4266 General Fund, Controller’s Dept $23,416 Contract Services
SECTION 2. That a Purchase Order is authorized to be issued for the amount of Twenty-Three Thousand Four-Hundred Sixteen Dollars ($23,416) for Eadie and Payne LLC. for providing needed services for the City beyond the terms of the agreement in assisting with the preparation of the FY2022-2023 audit from the following account:
Account Code Account Name Amount
1001-650-000-4266 General Fund $23,416
Controller’s Department
Contract Services
SECTION 3. That a duly copy of the Resolution shall be filed with the offices of the City Manager, City Clerk, City Attorney, and City Controller.
SECTION 4. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this ____________ day of _____________, 2025.
_______________________________
EMMA SHARIF
MAYOR OF THE CITY OF COMPTON
ATTEST:
______________________________
SATRA D. ZURITA
CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON )
I, Satra D. Zurita, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on this ___________ day of ________________, 2025.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCILMEMBERS -
NOES: COUNCILMEMBERS -
ABSTAIN: COUNCILMEMBERS -
ABSENT: COUNCILMEMBERS -
Resolution No. _______
3 ___________________________________
SATRA D. ZURITA
CITY CLERK OF THE CITY OF COMPTON
Audit Area Comments Hours
Capital outlay We encountered difficulties in obtaining the correct support for the selected items tested. We had to follow‐up multiple times. 20.50 Cost allocation
Testing was not included in audit plan. Audit plan was created in 2022 when we proposed to perform the audits for FY 2022‐2024. Cost allocation was implemented in 2024. 14.83
Land held for sale
We found errors in the audit schedules provided by the City. The City revised the schedule to correct the errors but the revised schedules contained new errors. This increased the time we spent to perfrom the audit. 13.50
SBITA
Procedures related to leases and SBITA were not included in fee proposal for FY 2022 ‐ 2024. Per our fee proprosal, assistance related to implementation of new GASB pronouncements related to leases and SBITA, will be charged separately. 20.00
Legal analysis We encountered difficulties in obtaining attorney representations, particularly representation from the City Attorney. 9.50 License and permits Testing was not included in original audit plan for FY 2022 ‐ 2024.
Testing was done to address a significant risk identified in the FY 2023. 21.50
Retroactive payroll
Testing was not included in original audit plan for FY 2022 ‐ 2024.
Testing was done to address a significant risk identified in the FY 2023, for testing of Pay‐rates, and pay‐check calculations. 17.25
Total Hours Spent on Out‐of‐Scope Services 117.08
Average Hourly Rate 200.00$
Out‐of‐Scope Audit Fee 23,416.00$
Out of Scope Fees
FY 2023
June 17, 2025
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY CONTROLLER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COMPTON AUTHORIZING THE CITY MANAGER TO AMEND THE
CONTROLLER’S DEPARTMENT FY2024-2025 BUDGET, AND TO
ISSUE AN ADDITIONAL PURCHASE ORDER OF EIGHTEEN
THOUSAND FIVE-HUNDRED TWENTY-TWO DOLLARS ($18,522) FOR
EADIE AND PAYNE LLP FOR SERVICES BEYOND THE TERMS OF
THE AGREEMENT IN ASSISTING WITH THE PREPARATION OF THE
FY2023-2024 AUDIT.
Staff is requesting that the City Council consider adopting a Resolution authorizing the City Manager to amend the Controller’s Department FY2024-2025 budget, and issue an additional Purchase Order for Eighteen Thousand Five-Hundred Twenty-Two Dollars ($18,522) for Eadie and Payne LLP for providing needed services for the City beyond the terms of the agreement amount in assisting with the preparation of the FY2023-2024 audit.
BACKGROUND
In accordance to Section 1419 of the Compton City Charter, the employment of a qualified accountant at the beginning of each fiscal year, who shall examine the books, records, inventories and reports of all officers and employees who receive, handle or disburse public funds and of such other officers, employees and departments as the City Council may direct, is to be completed.
In June 2023, Resolution No. 25,856 authorized the City Manager to accept the proposal of the Independent Auditor, Eadie and Payne LLP, and enter into a contract to provide the necessary services.
(Please see Attachment A for the Professional Services Agreement notating the services to be provided.)
STATEMENT OF ISSUE
During the FY2023-2024 audit process, additional time and services beyond the agreement amount are proposed as needed. Eadie and Payne LLP are willing to extend
7.7.7.7. Staff Report – Resolution Authorizing Issuance of Purchase Order for Audit Services Provided Outside of the Agreement for FY2023-2024 audit preparation ($18,522) Eadie and Payne, LLP
June 17, 2025
2 their services to ensure the City’s needs are met. Eadie and Payne LLP has notified the City of their proposed cost for their extended services in amount of ($18,522). On Monday, June 11, 2025, this item was brought before the Audit Committee, in which the Audit Committee supported the recommendation for the City to accept the out of scope fee proposal for FY2024. If during the course of the audit, the auditor experiences cases of insufficient or delayed responses from the City staff, more out of scope services may be proposed and an additional request may be made at a later time. (Please see Attachment B for the breakdown of fees)
FISCAL IMPACT
A budget amendment to the FY2024-2025 City Controller’s Department Budget is being requested for the following:
Appropriation from:
General Fund, Fund Balance for $18,522.
To:
Increase in Expenditure appropriations:
Account Code Account Name Amount
1001-650-000-4266 General Fund, Controller’s Dept $18,522 Contract Services
Staff is requesting that City Council authorize the City Manager to amend the Controller’s Department FY2024-2025 budget, and authorize the City Manager to issue an additional Purchase Order for the amount of Eighteen Thousand Five-Hundred Twenty-Two Dollars ($18,522) for Eadie and Payne LLP for providing needed services for the City beyond the terms of the agreement in assisting with the preparation of the FY2023-2024 audit.
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution.
APPROVED FOR FORWARDING:
SHARON RAHBAN NAVIZADEH
CITY CONTROLLER FORWARDED TO CITY MANAGER
RESOLUTION NO. __________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COMPTON AUTHORIZING THE CITY MANAGER TO AMEND THE
CONTROLLER’S DEPARTMENT FY2024-2025 BUDGET, AND TO ISSUE AN
ADDITIONAL PURCHASE ORDER OF EIGHTEEN THOUSAND FIVE-HUNDRED TWENTY-TWO DOLLARS ($18,522) FOR EADIE AND PAYNE LLP FOR
SERVICES BEYOND THE TERMS OF THE AGREEMENT IN ASSISTING WITH THE PREPARATION OF THE FY2023-2024 AUDIT.
WHEREAS, in accordance to Section 1419 of the Compton City Charter, the employment of a qualified accountant at the beginning of each fiscal year, who shall examine the books, records, inventories and reports of all officers and employees who receive, handle or disburse public funds and of such other officers, employees and departments as the City Council may direct, is to be completed; and
WHEREAS, in June 2023, Resolution No. 25,856 authorized the City Manager to accept the proposal of the Independent Auditor, Eadie and Payne LLP, and enter into a contract to provide the necessary services; and WHEREAS, during the FY2023-2024 audit process, additional time and services beyond the agreement are proposed as needed. Eadie and Payne LLP are willing to extend their services to ensure the City’s needs are met. Eadie and Payne LLP has notified the City of their proposed cost for their extended services in amount of ($18,522). If, during the course of the audit, the auditor experiences cases of insufficient or delayed responses from the City staff, more fees may be proposed and an additional request may be made; and
WHEREAS, a budget amendment to the FY2024-2025 City Controller’s Department Budget is being requested for the following:
Appropriation from:
General Fund, Fund Balance for $18,522.
To:
Increase in Expenditure appropriations:
Account Code Account Name Amount
1001-650-000-4266 General Fund, Controller’s Dept $18,522 Contract Services
WHEREAS, staff is requesting that City Council authorize the City Manager to amend the Controller’s Department FY2024-2025 budget, and authorize the City Manager to issue an additional Purchase Order for the amount of Eighteen Thousand Five-Hundred Twenty-Two Dollars ($18,522) for Eadie and Payne LLP for providing needed services for the City beyond the terms of the agreement in assisting with the preparation of the FY2023-2024 audit.
WHEREAS, staff recommends the City Council to adopt the attached Resolution ; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
Resolution No. _______
2 SECTION 1. That the City Manager is hereby authorized to amend the Controller’s Department FY2024-2025 budget to appropriate funds from Fund Balance ($18,522) to increase in expenditure appropriations as follows:
Account Code Account Name Amount
1001-650-000-4266 General Fund, Controller’s Dept $18,522 Contract Services
SECTION 2. That a Purchase Order is authorized to be issued for the amount of Eighteen Thousand Five-Hundred Twenty-Two Dollars ($18,522) Dollars for Eadie and Payne LLP for providing needed services for the City beyond the terms of the agreement in assisting with the preparation of the FY2023-2024 audit from the following account:
Account Code Account Name Amount
1001-650-000-4266 General Fund, Controller’s Dept $18,522 Contract Services
SECTION 3. That a duly copy of the Resolution shall be filed with the offices of the City Manager, City Clerk, City Attorney, and City Controller.
SECTION 4.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this ____________ day of _____________, 2025.
_______________________________
EMMA SHARIF
MAYOR OF THE CITY OF COMPTON
ATTEST:
_______________________________
SATRA D. ZURTA
CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON )
I, Satra D. Zurita, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on this ___________ day of ________________, 2025.
Resolution No. _______
3 That said Resolution was adopted by the following vote, to wit:
AYES: COUNCILMEMBERS -
NOES: COUNCILMEMBERS -
ABSTAIN: COUNCILMEMBERS -
ABSENT: COUNCILMEMBERS -
___________________________________
SATRA D. ZURITA
CITY CLERK OF THE CITY OF COMPTON
Original Fee Approved under Resolution 25,856
FY 2023 215,776$
3% adjustment to catch up with inflation 6,474
222,250$
Original Fee Approved under Resolution 25,856
FY 2024 203,728$
Requested Adjustment 18,522$
Audit Fee Adjustment
FY 2024