SECTION 1. That the City Manager is hereby authorized to issue an additional purchase order in the amount of Nine Thousand Six Hundred Dollars ($9,600) to Eadie and Payne LLC. for providing needed services for the City beyond the terms of the agreement from account 1001-650-000-4266.
SECTION 2. That funds for this expenditure are available within Account No.1001-650-000-4266 in the Fiscal Year 2026-2027 City Controller’s Budget:
Account Code Account Name Amount
1001-650-000-4266 Contract Services $9,600
SECTION 3. That a 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 27th day of October, 2026.
_______________________________
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 27th day of October, 2026.
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
To: City Controller
From: EadiePayne, LLP
Date: September 23, 2026
Subject: Request for Additional Audit Fees
Purpose
We are requesting approval for additional audit fees related to work that is outside the scope of the original engagement. Specifically, additional procedures will be necessary for the retroactive pay calculation and the mapping of the updated trial balance (TB) accounts into our audit system.
Retroactive Pay
The retroactive pay is outside the original engagement scope and will require additional audit procedures and testing. Based on our prior-year experience, the retroactive pay calculation resulted in a material proposed adjustment. Since the related liability is required to be recognized as of June 30, 2025, additional procedures will be necessary to verify the calculation, supporting documentation, and related liability. This work will require additional time beyond the original engagement fee.
Trial Balance Mapping
We have also identified more than 200 new trial balance accounts that require manual mapping into our audit system. The volume of new accounts requires significant additional time to review the accounts, determine the appropriate financial statement classifications, and ensure that the accounts are properly incorporated into our audit procedures.
Revenue
Due to confidential matters brought to our attention during the audit, we need to expand our audit procedures over grant revenue. The additional procedures included reviewing grant agreements and related supporting documentation, testing selected grant receipts and revenue recognition, evaluating the eligibility and timing of recorded amounts, and tracing selected transactions to supporting records and external documentation, as applicable.
Contingent Additional Fee
In addition to the specific additional work noted above, we are requesting approval for a $1,600 contingent fee to address unforeseen audit issues that may require additional procedures or testing as the audit progresses.
Based on the current status of the audit, we have already identified matters requiring additional attention, including: Cash, Capital Assets, Account Receivable, Compensated absences (the first year the City has implemented GASB 101), Cost Allocation, Unearned and Deferred Revenue.
We hope that, with the assistance of City Controller’s staff, these matters can be resolved through the normal audit process without requiring additional fees. However, given the current audit status and the additional work already identified, we believe it is appropriate to establish a contingent fee in case significant additional procedures become necessary.
The contingent fee would not automatically be billed or incurred. Before performing work that would utilize the contingent amount, we will discuss the matter with the City Controller, explain the additional work required, and obtain approval from the City before proceeding.
Estimated Additional Fees
Our goal remains to complete the audit efficiently and within the agreed-upon scope and budget.
We will continue to work closely with City Controller Office to resolve the identified matters and will communicate with the City Controller before utilizing any portion of the contingent fee.
Thank you for your consideration and continued assistance throughout the audit.
October 27, 2026
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: INTERIM CITY MANAGER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
APPROVING FIRST QUARTER BUDGET AMENDMENTS TO THE FISCAL YEAR 2026-2027 BUDGET, AUTHORIZING THE TRANSFER OF FUNDS BETWEEN
VARIOUS ACCOUNTS, AND AMENDING THE EXISTING PERSONNEL SUMMARY
TO CORRECT ADMINISTRATIVE OVERSIGHTS AND MAINTAIN CONTINUOUS CITY OPERATIONS. ALL THESE TRANSACTIONS ARE “COST NEUTRAL”.
SUMMARY
Adoption of this resolution will authorize amendments to the Fiscal Year 2026-2027 Adopted Budget which was adopted by the City Council on June 23, 2026. Based on this review, Council will consider a resolution to amend expenditure appropriations to address budgetary issues that arose between the adoption of the budget and the present. The Interim City Manager is recommending adjustments needed to maintain a balanced budget and correct any processing discrepancies. All these transactions are “cost neutral” (i.e., they realign existing funds dollar-for-dollar without increasing the City's total net budget ceiling).
BACKGROUND
The annual budget is a planning document used to fund programs as directed by Council and is based on assumptions and projections. As a result of daily monitoring, staff revised expenditures to make necessary budget corrections.
Pursuant to Section 1408 of the City of Compton Charter, the City Council maintains explicit authority at any meeting after the adoption of the budget to amend or supplement the budget by a motion or resolution adopted by the affirmative votes of at least four members. This charter provision explicitly allows the City Council to authorize the transfer of unused balances appropriated for one purpose to another purpose. Accordingly, this administrative amendment complies with all chartered mandates to correct the ledger errors and ensure uninterrupted city operations.
11. Staff Report – Resolution Approving Corrections
FY 2026-27 Budget Amendments/Transferring
Funds Between Various Accounts
October 27, 2026, Page 2
STATEMENT OF THE ISSUE
Budget Adjustment for Fiscal Year 2026-2027
The proposed budget amendments are cost-neutral, and the total revenues and expenditures remain balanced consistent with Fiscal Year 2026-2027 Adopted Budget.
The following amendments are necessary to resolve budget variances since the adoption of the Fiscal Year 2026-2027 Budget. Ultimately, these technical ledger realignments ensure smooth, uninterrupted city operations, allowing the City of Compton to continue delivering the highest quality of public services to our residents. 1) Healthcare Premiums
Staff prepared the Fiscal Year 2026-2027 Adopted Budget and appropriated the Healthcare Premiums in the total amount of $46,733,558. This budget amendment is a correction from the initial placeholder set during the Fall 2025 CalPERS Healthcare Premiums forecast. On July 14, 2026, CalPERS officially announced that the overall weighted rate change stabilized at a modest 4.97% while continuing to improve healthcare quality for its members.
This stabilized rate from CalPERS allows the city to realign the Healthcare Premiums budget line items with actual market data, reducing the Appropriate Allocation by 26% (or $12,000,016). This reduction is reallocated to various active internal operational and service expenditure lines to remain cost neutral. Crucially, this adjustment represents a correction to an initial over-projection of healthcare costs and does not indicate a reduction in benefits. This administrative amendment will not impact on the City of Compton's ability to maintain full, uninterrupted healthcare coverage for all eligible employees.
The proposed budget amendments will increase the level of municipal services provided and resolve discrepancies while maintaining a balanced Fiscal Year 2026-2027 Budget.
All administrative changes are to take effect immediately upon the approval of this resolution (see Attachment 1).
2) Bond Payment Adjustments
During the budget preparation process, the bond debt service payment schedule was omitted from the FY 2026-2027 budget book presented to the City Council for adoption in June 2026. Staff is including the schedule for administrative reference and clarity to ensure comprehensive and accurate record-keeping. The schedule has no impact on the approved budget allocations (see Attachment 2).
Staff Report – Resolution Approving Corrections
FY 2026-27 Budget Amendments/Transferring
Funds Between Various Accounts
October 27, 2026, Page 3
3) Personnel Adjustment
The City Council approved an appropriation of $72,188.40 to fund departmental operations and staffing. However, the specific job classification associated with this allocation was not explicitly updated in the Final Personnel Summary attached to the adopted budget resolution.
The department requires the formal establishment of this one (1) new Administrative Assistant position. This position will be responsible for departmental administrative duties.
Adopting this resolution will ensure the City’s Full-Time Equivalent (FTE) authorizations align accurately with the budget appropriations already authorized by the City Council under account number 1001-690-000-4101.
4) Risk Management and Public Works – Street Maintenance Account Realignment
This budget amendment serves as a necessary adjustment to ensure uninterrupted City of Compton operations. Due to a processing omission, funds within the approved budget were appropriated to the incorrect expenditure classifications.
Pursuant to the City of Compton's financial guidelines and account balancing protocols, this action properly realigns the ledgers by transferring the allocations to their correct account designations.
This adjustment is a reclassification of existing funds. It is cost-neutral, does not impact departmental funding levels, and ensures that critical risk containment and public works street maintenance services continue without operational disruption or liability exposure.
Risk Management
Decrease Expenditure Account:
6400-510-000-4295 Liability Payment $650,000
Increase Expenditure Account:
6400-510-000-4268 Insurance Premiums $650,000
Public Works – Street Maintenance
Decrease Expenditure Account:
5116-720-000-4246 Uniforms $3,000,000
Increase Expenditure Account:
5116-720-000-4266 Contract Services $3,000,000
Staff Report – Resolution Approving Corrections
FY 2026-27 Budget Amendments/Transferring
Funds Between Various Accounts
October 27, 2026, Page 4
FISCAL IMPACT
The City of Compton continues to maintain a balanced budget. The recommended administrative amendments are cost-neutral and result in a net zero fiscal impact to the General Fund and associated special funds. All requested increases to operational accounts are balanced by identical matching decreases or correspond to pre-funded allocations, ensuring no negative impact on the City’s approved fiscal footprint for FY 2026-2027.
RECOMMENDATION
Staff recommend that the City Council adopt the attached Resolution authorizing the Interim City Manager to execute the necessary cost-neutral budget amendments and technical ledger transfers for the Fiscal Year 2026-2027 Budget.
JERRY GROOMES
INTERIM CITY MANAGER
ATTACHMENTS
1. Healthcare Premium Reallocation
2. Debt Service Payments Schedule
3. Proposed Resolution
RESOLUTION NO. _________________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
APPROVING FIRST QUARTER BUDGET AMENDMENTS TO THE FISCAL YEAR 2026-2027 BUDGET, AUTHORIZING THE TRANSFER OF FUNDS BETWEEN
VARIOUS ACCOUNTS, AND AMENDING THE EXISTING PERSONNEL SUMMARY
TO EXECUTE ADMINISTRATIVE ACCOUNT REALIGNMENTS AND MAINTAIN
CONTINUOUS CITY OPERATIONS
WHEREAS, the annual budget is a planning document used to fund policies and programs as directed and approved by the City Council, based on assumptions and projections that require periodic realignment through monitoring; and WHEREAS, CalPERS officially announced stabilized health insurance premiums rate adjustments on July 14, 2026, that allows the City to adjust the $12,000,016 in healthcare premiums and reallocate those resources to appropriate fund operational services on a cost-neutral basis; and
WHEREAS, during the initial budget adoption process, the debt service payment schedule for existing bond obligations was omitted from the final authorized budget book; and
WHEREAS, to ensure comprehensive record-keeping, staff is establishing this schedule page for administrative reference and clarity, which has no impact to the approved budget allocations; and
WHEREAS, a personnel adjustment occurred where an authorized $72,188.40 appropriation for one (1) new Administrative Assistant position in Account 1001-690- 000-4101 was omitted from the final authorized Personnel Summary, requiring a personnel establishment; and
WHEREAS, record keeping discrepancy resulted in the misallocation of adopted appropriations within the Risk Management and Public Works-Street Maintenance budgets, this adjustment is cost-neutral, does not impact departmental funding levels for the reclassification of existing funds transfer of $650,000 and $3,000,000 respectively to ensure uninterrupted public services; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The recitals set forth above are true and correct and are incorporated herein by this reference.
SECTION 2. The City Council hereby authorizes the Interim City Manager, or their designee, to execute the cost-neutral healthcare premiums budget reallocations by decreasing the healthcare premiums by total of $12,000,016 and increase the corresponding operational expenditure accounts as itemized in Attachment 1 of the accompanying staff report.
Resolution No. ______________
SECTION 3. The City Council hereby authorizes the Interim City Manager, or their designee, to establish the debt service payment schedule page for existing bond obligations for administrative reference and clarity as detailed in Attachment 2 of the accompanying staff report, which has no impact to the approved budget allocations.
SECTION 4. The City Council hereby amends the City of Compton Personnel Summary to establish one (1) Administrative Assistant position under Account No. 1001-690-000-4101 to align authorized headcount with existing Fiscal Year 2026-2027 budget appropriations.
SECTION 5. The City Council hereby authorizes the Interim City Manager, or their designee, to execute the following internal administrative account realignments:
Risk Management
Decrease Account: 6400-510-000-4295 (Liability Payment) — $650,000.00 Increase Account: 6400-510-000-4268 (Insurance Premiums) — $650,000.00 Public Works - Street Maintenance
Decrease Account: 5116-720-000-4246 (Uniforms) — $3,000,000.00 Increase Account: 5116-720-000-4260 (Contract Services) — $3,000,000.00 SECTION 6. This Resolution shall take effect immediately upon its adoption.
ADOPTED this 27th day of October, 2026.
_______________________________
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 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 27th day of October, 2026.
Resolution No. ______________
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