Paramount City Council
January 28, 2025

Agenda
City Council
January 28, 2025
Regular Meeting - City Hall Council Chamber - 5:00 PM
16400 Colorado Avenue Paramount, CA 90723 (562) 220-2000 www.paramountcity.gov

PUBLIC PARTICIPATION NOTICE
In-person Attendance: The public may attend the City Council meetings in-person.

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Any document distributed to a majority of the City Council regarding any item on this agenda after distribution of the agenda packet will be made available in the City Clerk’s office during normal business hours at City Hall located at 16400 Colorado Ave., Paramount, CA 90723. In addition, such documents will be posted on the City’s website at www.paramountcity.gov/government/city-council/meeting-agendas-minutes/.

CALL TO ORDER: Mayor Annette C. Delgadillo
Student Mayor Adrian Lara Escobedo, 5th Grade Student
Wesley Gaines Elementary
Student Mayor Ian Romero, 5th Grade Student
Los Cerritos Elementary
Agenda January 28, 2025
Regular Meeting City Council Page 2
PLEDGE OF ALLEGIANCE: Student Mayors Adrian Lara Escobedo and Ian Romero

ROLL CALL OF
COUNCILMEMBERS:

Councilmember Isabel Aguayo
Councilmember Brenda Olmos
Councilmember Vilma Cuellar Stallings
Vice Mayor Peggy Lemons
Mayor Annette C. Delgadillo

PRESENTATIONS

1. VIDEO CITY OF PARAMOUNT DONATION DRIVE FOR FIRE VICTIMS

2. CERTIFICATE OF

RECOGNITION

STUDENT MAYOR FOR THE DAY

CITY COUNCIL PUBLIC COMMENT UPDATES

PUBLIC COMMENTS

CONSENT CALENDAR
All items under the Consent Calendar may be enacted by one motion. Any item may be removed from the Consent Calendar and acted upon separately by the City Council.

3. ORDINANCE
1193

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PARAMOUNT AMENDING SECTIONS 8.12.010 AND 8.12.020;
ADDING SECTION 8.12.032; AND AMENDING SECTIONS

8.12.050, 8.12.110, AND 8.12.160 OF CHAPTER 8.12
(FIREWORKS) OF THE PARAMOUNT MUNICIPAL CODE TO

REVISE FIREWORKS STAND HOURS OF OPERATION AND

OTHER FIREWORKS REGULATIONS IN THE CITY OF

PARAMOUNT
Recommended Action: Read by title only and adopt Ordinance No. 1193.

NEW BUSINESS

4. ORAL REPORT CLEARWATER SPECIFIC PLAN UPDATE

5. RECEIVE AND
FILE

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR
FISCAL YEAR ENDED JUNE 30, 2024
Recommended Action: Receive and file the Annual
Comprehensive Financial Report for Fiscal Year Ended June 30, 2024.

Agenda January 28, 2025
Regular Meeting City Council Page 3

6. APPROVAL AMENDMENT NO. 1 TO THE AGREEMENT WITH PREMIER

AQUATIC SERVICES, LLC
Recommended Action: 1) Appropriate an additional $12,100 from the available General Fund to account for the contract increase that impacts the current FY 2024-25 budget year; and 2) Approve and authorize the City Manager to execute Amendment No. 1 to the agreement with Premier Aquatic Services LLC to continue providing all aquatic programs, including swim lessons, recreation swim, and water aerobics, for the City at Paramount Park Pool for a total amount of $1,000,585.50 for the next three years from the period January 29, 2025 through January 31, 2028 (2025-2028).

7. AWARD OF

CONTRACT

PROGRESS PARK PLAZA EXTERIOR IMPROVEMENT
PROJECT (CIP NO. 9352) – APPROVAL OF PLANS AND

SPECIFICATIONS, AWARD OF CONTRACT, AND FINDING THE

PROJECT EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT PURSUANT TO THE CLASS 1 CATEGORICAL

EXEMPTION
Recommended Action: 1) Approve the plans and specifications as detailed in the bid documents, with respect to design criteria; 2) Find the project exempt from CEQA; and 3) Award the contract for the Progress Park exterior improvement project to ARC Construction, Inc., La Crescenta, California in the amount of $1,646,401.22, and authorize the Mayor or her designee to execute the agreement.

8. RESOLUTION
25: 001
2025 LEGISLATIVE PLATFORM
Recommended Action: Adopt Resolution No. 25:001 approving the 2025 Legislative Platform.

9. ORAL REPORT UPDATE ON PUBLIC ART MASTER PLAN

COMMENTS/COMMITTEE REPORTS

CLOSED SESSION

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Government Code § 54957(b)(1)
Employee: City Manager

CONFERENCE WITH LABOR NEGOTIATOR
Government Code § 54957.6
Agency Designated Representative: Nicholas Ghirelli, City Attorney Unrepresented Employee: City Manager
Agenda January 28, 2025
Regular Meeting City Council Page 4

ADJOURNMENT
To a meeting on February 11, 2025 at 6:00 PM in the Council Chamber at City Hall, 16400 Colorado Ave., Paramount, CA
Americans with Disabilities Act: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s office at (562) 220-2225 at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Note: Physical hard copies of agenda items are on file in the City Clerk’s office and are available for public inspection during normal business hours. Materials related to an item on this Agenda submitted after distribution of the agenda packet are also available for public inspection during normal business hours in the City Clerk’s office. The office of the City Clerk is located at City Hall, 16400 Colorado Avenue, Paramount.

To: Honorable City Council
From: John Moreno, City Manager
By: Heidi Luce, City Clerk
Date: January 28, 2025
SUBJECT: CITY OF PARAMOUNT DONATION DRIVE FOR FIRE VICTIMS A video highlighting the City of Paramount’s donation drive benefitting those affected by the Palisades and Eaton fires will be presented.

To: Honorable City Council
From: John Moreno, City Manager
By: Heidi Luce, City Clerk
Date: January 28, 2025
SUBJECT: STUDENT MAYOR FOR THE DAY
The City Council will recognize the following students for being chosen by their school to serve as the City of Paramount’s Student Mayor for the Day:
• Adrian Lara Escobedo, 5h Grade Student
Wesley Gaines Elementary School
• Ian Romero, 5th Grade Student
Los Cerritos Elementary School
City Council Public Comment Updates
January 28, 2025
From the January 14th City Council Meeting:

Commenter Request/Issue/Concern Action/Comment
Yesenia Cuarenta,
Resident
Mentioned her interest in
applying to the Safe TREC
program for pedestrian and
bicycle safety, which she
forwarded to the city.

Requested the city's support
for applying to this program.

Staff confirmed they did receive
the email from Ms. Cuarenta. They
encouraged her to apply to the
program and inform the City if she
is awarded the grant.

Residents of Rio
Puente Mobile
Home Park
(Carolina Rios,
Hector Ramirez)
Requesting support for rent
control due to increasing
rents. Some residents
expressed difficulty paying
rent as some are day
laborers with inconsistent
incomes. They are
requesting reasonable rent
increases.

Residents of
Cinderella Mobile
Home Park
(Alfredo Galdamez,
Gloria Madrigal,
Ofelia Orozco, Juan
C. Flores, Michael
Latiemre)
Raised important concerns
about significant rent
increases that threaten their
ability to afford housing.

They expressed support for
moderate rent increases of
3%, and shared concerns
with excessive 10% annual
hikes. They asked for City
support in addressing these
challenges and ensuring fair
housing for all.

Gabriela Arambula,
Cherryfield Village
Raised concerns about not
only the increasing rents, but
also the high trash collection
fee being charged ($300)
per home. She requested
the city's help in providing
individual trash bins for each
The Homelessness Ad-hoc
Committee is scheduled to meet
with mobile home property owners
and residents on January 30, 2025
at Progress Park Plaza. This
meeting, facilitated by the City, will
be the start of discussion between
resident representatives, owner
representatives, and subject
matter experts to reach consensus
on an MOU that will include terms
such as rent increases and other
responsibilities. At the end of the
negotiations process, a public
meeting will be held to present the
terms within the MOU.

City Council Public Comment Updates
January 28, 2025

Commenter Request/Issue/Concern Action/Comment
home, rather than the
current shared arrangement.

Brooke Ervin,
MH Action
Emphasized the financial
situation faced by mobile
home residents, issues of
retaliation and lack of
oversight, and the need for
the city to work with property
owners to ensure clear
information about their
financial assistance
programs.

Michelle Rivera,
Resident
Submitted an email
expressing frustration with
lack of improvements in
security, parking, and
housing conditions in her
neighborhood.

Staff communicated with the
resident to schedule a meeting to
further discuss the concerns. A
meeting date is pending.

To: Honorable City Council
From: John Moreno, City Manager
By: Heidi Luce, City Clerk
Date: January 28, 2025
SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARAMOUNT AMENDING SECTIONS 8.12.010 AND 8.12.020; ADDING SECTION

8.12.032; AND AMENDING SECTIONS 8.12.050, 8.12.110, AND 8.12.160 OF CHAPTER 8.12 (FIREWORKS) OF THE PARAMOUNT MUNICIPAL

CODE TO REVISE FIREWORKS STAND HOURS OF OPERATION AND

OTHER FIREWORKS REGULATIONS IN THE CITY OF PARAMOUNT

BACKGROUND
The City Council, at its regularly scheduled meeting on January 14, 2025, introduced Ordinance No. 1193 and placed it on the January 28, 2025 agenda for adoption.

ORDINANCE NO. 1193
“AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PARAMOUNT AMENDING SECTIONS 8.12.010 AND 8.12.020; ADDING SECTION 8.12.032; AND AMENDING SECTIONS 8.12.050, 8.12.110, AND 8.12.160 OF CHAPTER 8.12 (FIREWORKS) OF THE PARAMOUNT

MUNICIPAL CODE TO REVISE FIREWORKS STAND HOURS OF

OPERATION AND OTHER FIREWORKS REGULATIONS IN THE CITY
OF PARAMOUNT”

DISCUSSION
Ordinance No. 1193, as shown above, is presented for adoption at tonight’s meeting. The agenda report from the January 14, 2025 meeting is attached for reference.

FISCAL IMPACT
None.

VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving Agenda Report January 28, 2025
ORDINANCE NO. 1193 Page 2
the City’s Vision. This item aligns with Strategic Outcome No 1: Safe Community - Provide a safe place to live, work, and visit.

RECOMMENDED ACTION
Read by title only and adopt Ordinance No. 1193.

18. ORDINANCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARAMOUNT AMENDING SECTIONS 8.12.010 AND

8.12.020; ADDING SECTION 8.12.032; AND AMENDING
SECTIONS 8.12.050, 8.12.110, AND 8.12.160 OF CHAPTER

8.12 (FIREWORKS) OF THE PARAMOUNT MUNICIPAL

CODE TO REVISE FIREWORKS STAND HOURS OF

OPERATION AND OTHER FIREWORKS REGULATIONS IN

THE CITY OF PARAMOUNT
Recommended Action: Read by title only, waive further
reading, introduce Ordinance No. 1193, and place it on the January 28, 2025 agenda for adoption.

To: Honorable City Council
From: John Moreno, City Manager
By: John King, AICP, Interim Planning Director
Date: January 14, 2025
SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARAMOUNT AMENDING SECTIONS 8.12.010 AND 8.12.020; ADDING SECTION

8.12.032; AND AMENDING SECTIONS 8.12.050, 8.12.110, AND 8.12.160 OF CHAPTER 8.12 (FIREWORKS) OF THE PARAMOUNT MUNICIPAL

CODE TO REVISE FIREWORKS STAND HOURS OF OPERATION AND

OTHER FIREWORKS REGULATIONS IN THE CITY OF PARAMOUNT

BACKGROUND
This item is a request for the City Council to approve the introduction of Ordinance No. 1193, revising fireworks stand hours of operation and other fireworks regulations.

Approximately 290 cities (about 62%) in California allow the purchase and use of “safe and sane” fireworks during the days leading up to Independence Day. Beginning in 1961 when the City Council adopted Ordinance No. 161, the City has allowed the sale and use of “safe and sane” fireworks in late June and early July. From time to time, the City Council has adopted ordinances updating local fireworks regulations, which are in Chapter 8.12 (Fireworks) of the Municipal Code.

In 2002, the City Council adopted Ordinance No. 937, which restricted fireworks stand operators to the service club operators established at that time. As a result of these voluntary “phase out” provisions, the 14 fireworks stands from 2002 have been reduced to eight in the City.

In 2010, the City Council adopted Ordinance No. 1019 to include a framework for administrative citations related to fireworks.

In 2020, following City Council direction to increase the fireworks fine schedule, the City Council adopted Resolution No. 20:001 with the inclusion of a social host fine.

The Planning Department is the lead department for permitting and inspections of fireworks stands. The Public Safety Department is the lead department for enforcing the safe possession and use of fireworks.

Agenda Report January 14, 2025
ORDINANCE NO. 1193 Page 2

DISCUSSION
Hours of Operation
Each year the Public Safety Department hosts a fireworks seminar attended by City representatives, law enforcement and fire personnel, and representatives of each of the eight fireworks providers. The purpose of the meeting is for those organizations present to discuss problems, if any, regarding illegal fireworks vendors and fireworks education programs. The meeting typically takes place in June.

At the fireworks seminar in June 2024, representatives of some of the approved service organizations that sell “safe and sane” fireworks expressed an interest in extending the possible morning hours of fireworks sales. Section 8.12.050 of the Municipal Code limits “safe and sane” fireworks sales to noon through 10:00 p.m. from June 28th through July 4th. (State law generally allows such a change at the discretion of the local jurisdiction.) The only exception would be June 28 of each year when sales could begin no earlier than 12:00 p.m. The preference is to allow sales to begin at 9:00 a.m. rather than 12:00 p.m.

Summary of Proposed Revisions
In addition to changing the sales hours as described in the previous section of this report, the proposed ordinance includes the following revisions:
• New definitions. Adding definitions for fireworks stand, social host, and State Fireworks Law. Including the social host definition in particular will assist City staff with the enforcement of the Code.
• Amended definitions. More detailed definitions are proposed for fireworks and “safe and sane” fireworks.
• Social host liability. A Code section is proposed to give added legal weight to the administrative fines that have been issued since 2020. This section includes provisions for juvenile social hosts and sets the responsibility with parents/guardians for addressing penalties. Community service hours in lieu of or in addition to monetary penalties may be granted at the discretion of the City Attorney or City Prosecutor. • Permit application. Minor changes are included, such as changing Community Development Department references to the Planning Department and requiring more detail on fireworks permit applications.
• Penalties. The penalties section of the fireworks regulations is updated to tie them more explicitly to the administrative fines section of the Municipal Code.

The Interim City Attorney and current City Attorney have reviewed and approved the proposed changes reflected in this Ordinance.

Environmental Assessment
This ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15305, minor alterations in land use limitations in areas with Agenda Report January 14, 2025
ORDINANCE NO. 1193 Page 3
an average slope of less than 20% that do not result in any changes in land use or density and Section 15061(b)(3) which is the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment and CEQA does not apply where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment.

FISCAL IMPACT
None.

VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity, and guidelines; and provide the framework for policy decisionmaking. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No. 1: Safe Community – Provide a safe place to live, work, and visit.

RECOMMENDED ACTION
Read by title only, waive further reading, introduce Ordinance No. 1193, and place it on the January 28, 2025 agenda for adoption.

CITY OF PARAMOUNT

LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE NO. 1193

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PARAMOUNT AMENDING SECTIONS 8.12.010 AND 8.12.020; ADDING SECTION 8.12.032; AND AMENDING SECTIONS 8.12.050, 8.12.110, AND 8.12.160 OF CHAPTER 8.12 (FIREWORKS) OF THE PARAMOUNT

MUNICIPAL CODE TO REVISE FIREWORKS STAND HOURS OF

OPERATION AND OTHER FIREWORKS REGULATIONS IN THE CITY

OF PARAMOUNT
WHEREAS, the Paramount City Council, pursuant to its police power, may adopt regulations to protect the health, safety, and welfare of the public under California Constitution Article XI, Section 7 and California Government Code Section 37100; and WHEREAS, Fireworks regulations as incorporated in Chapter 8.12 (Fireworks) of the Paramount Municipal Code were last revised in 2010 with Ordinance No. 1019; and WHEREAS, the City of Paramount recognizes fireworks create potential hazards to the public health, safety, and welfare and changes to local fireworks regulations are necessary from time to time.

THE CITY COUNCIL OF THE CITY OF PARAMOUNT DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The Recitals set forth hereinabove are true and correct and incorporated herein by reference as if fully set forth herein.

SECTION 2. Section 8.12.010 (Authority to regulate) of the Paramount Municipal Code is hereby amended in its entirety to read as follows:

8.12.010 Authority to regulate.

In accordance with Section 12541 of the California Health and Safety Code, the City Council of the City of Paramount hereby enacts this chapter for the purpose of regulating the sale, possession, use, ignition, firing, or discharge of fireworks within the City.

SECTION 3. The following provisions of Section 8.12.020 (Definitions) of Chapter

8.12 (Fireworks) of the Paramount Municipal Code shall be added or amended as follows to read as follows:

Fireworks. Any device containing chemical elements and chemical compounds capable of burning independently of the oxygen of the atmosphere and producing audible, visual, mechanical, or thermal effects which are used as pyrotechnic devices or for entertainment. The term "fireworks" includes, but is not limited to, devices designated by the manufacturer as fireworks, torpedoes, skyrockets, roman candles, rockets, Daygo ORDINANCE NO. 1193

bombs, sparklers, party poppers, paper caps, chasers, fountains, smoke sparks, aerial bombs, toy pistols, toy cannons, toy canes or toy guns in which explosives are used, fire balloons (balloons of a type which have a burning material of any kind attached thereto or which require fire underneath to propel them), and fireworks kits. The term "fireworks" includes both "dangerous fireworks" and "safe and sane” fireworks.

Fireworks stand. Any building, counter, or other structure of a temporary nature used in the sale, the offering for sale, or display for sale of safe and sane fireworks.

Safe and sane fireworks. Any fireworks which do not come within the definition of dangerous fireworks and that have been classified and registered as "safe and sane" by the State Fire Marshal. All “safe and sane” fireworks shall be labeled with the “safe and sane” fireworks seal as authorized by the State Fire Marshal.

Social host. A person or persons with a right of possession of the residence or other private property within the City at which dangerous fireworks are sold, offered to be sold, possessed, stored, used, ignited, or discharged, including, but not limited to: (1) any owner of the residence or other private property – meaning the record owner of the title to property as of the time of the possession, storage, sale, use, ignition, or discharge, wherever that person or entity resides at that time; (2) a tenant or lessee of the residence or other private property at the time when the illegal fireworks are possessed, stored, sold, used, ignited, or discharged; (3) the person(s) in charge of the residence or other private property at the time when dangerous fireworks are possessed, stored, sold, used, ignited, or discharged; (4) the person(s) who organizes, supervises, officiates, conducts, or controls the gathering or any other person(s) accepting responsibility for such gatherings where dangerous fireworks are possessed. A social host need not be present at the time dangerous fireworks are possessed, stored, sold, used, ignited, or discharged for the City to impose penalties.

State Fireworks Law. The laws and regulations set forth under the California Health and Safety Code Sections 12500 et seq. and relevant sections of Title 19 of the California Code of Regulations, as the same may be amended from time to time.

SECTION 4. Section 8.12.032 (Social host liability) is hereby added to the Paramount Municipal Code to read as follows:

8.12.032 Social host liability.

A. It is unlawful for any social host to allow, by invitation or consent, the possession, offer for sale, sale, use, display, explosion, ignition, or discharge any fireworks within the City except as provided under Chapter

8.12 on their property or their gathering on other private property. Such a violation subjects any and all social host(s) to penalties for violation of this chapter as prescribed in Section 8.12.160 of this code.

ORDINANCE NO. 1193

B. In the event that a juvenile hosts a gathering at a property or other private property at which illegal possession, offer for sale, sale, use, display, explosion, ignition, or discharge of fireworks occurs, then the parents or guardians of that juvenile will be jointly and severable liable for any penalties incurred pursuant to this section.

C. In the event that a juvenile and/or parents of a juvenile are found to be responsible under subsection B of this section, community service hours in lieu of, or in addition to, penalties under this section may be granted at the discretion of the City Attorney or City Prosecutor.

SECTION 5. Section 8.12.050 (Limitation on dates of sale of "safe and sane" fireworks) of the Paramount Municipal Code is hereby amended in its entirety to read as follows:

8.12.050 Limitation on dates of sale of “safe and sane” fireworks.

No "safe and "sane" fireworks shall be sold or offered for sale except from noon to 10:00 p.m. on June 28 and 9:00 a.m. to 10:00 p.m. on June 29 through July 4, inclusive, of each year from a permitted temporary fireworks stand.

SECTION 6. Section 8.12.110 (Permit application) of the Paramount Municipal Code is hereby amended in its entirety to read as follows:

8.12.110 Permit application.

A. Fee. Any person desiring to sell "safe and sane" fireworks shall submit a complete application to the Planning Director or designee for a fireworks permit. Each applicant shall pay to the City a fee, as adopted by resolution by the City Council but no less than $15.00, at the time the applicant files the application.

B. Time for Filing Application. Each application for a permit to sell "safe and sane" fireworks shall be filed with the Planning Director or designee no earlier than February 1 and no later than April 1 of the calendar year for which the permit is sought.

C. Contents of Application. Each applicant for a fireworks permit shall file an application with the Planning Director or designee. Each application shall require the following:

1. The name and address of applicant;

2. Applicant phone number and email address;

3. The applicant's status as a nonprofit, charitable, religious, or eleemosynary corporation or association;
ORDINANCE NO. 1193

4. The purpose for which the applicant is primarily existing and for which it was organized;

5. The names and addresses of the officers, if any, of the applicant;

6. The location where the applicant is applying to sell "safe and sane" fireworks;

7. The date the applicant was organized and established;

8. The location of the applicant's principal and permanent meeting place;

9. The name, address and State Fire Marshal's license number of any wholesaler or distributor from whom the retailer proposes to purchase "safe and sane" fireworks for resale;

10. The applicant's State Board of Equalization sales tax permit number;

11. The manner, method, and times (how and when) the applicant proposes to sell "safe and sane" fireworks; and

12. Such other information as the Planning Director may require for investigation and determination.

D. Qualifications of Applicant. A fireworks permit shall be issued only to those applicants identified under Section 8.12.080(B)(1), but which shall meet both of the following qualifications:

1. A City sponsored youth group or charitable, or religious association organized and existing primarily for veteran, patriotic, religious, charitable, or civic betterment purposes.

2. The association must have its principal and permanent meeting place in the City and have been organized and established in the City for a period of at least two years prior to the date of application made for a fireworks permit.

E. Investigation of Application. The Planning Director shall cause an investigation to be made of each application and shall submit a report of the findings and recommendations to the City Council should any one or more organization(s) identified in Section 8.12.080(B)(1) not submit an application for a fireworks permit as required under this chapter.

SECTION 7. Section 8.12.160 (Penalties) of the Paramount Municipal Code is hereby amended in its entirety to read as follows:

ORDINANCE NO. 1193

8.12.160 Penalties.

Violations of this chapter shall be punishable in accordance with Section

1.04.150 of the Paramount Municipal Code. Violations of this chapter set forth in an administrative fine schedule established by City Council resolution shall be punishable in accordance with Chapter 1.08 (Administrative Citations) of the Paramount Municipal Code.

SECTION 8. California Environmental Quality Act (CEQA). The City Council finds the approval of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

Alternatively, the City Council finds the approval of this ordinance is not a project under CEQA Regulation Section 15061(b)(3) because it has no potential for causing a significant effect on the environment.

SECTION 9. Severability. If any section, subsection, sentence, clause or phrase in this ordinance or the application thereof to any person or circumstance is for any reason held invalid, the validity of the remainder of the ordinance or the application of such provision to other persons or circumstances shall be adopted thereby. The City Council hereby declares it would have passed this ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, or phrases or the application thereof to any person or circumstance be held invalid.

SECTION 10. Effective Date. This Ordinance shall take effect thirty days after its adoption, shall be certified as to its adoption by the City Clerk, and shall be published as required by law, together with the names and members of the City Council voting for and against the Ordinance.

PASSED, APPROVED and ADOPTED by the City Council of the City of Paramount this 28th day of January 2025.

Annette C. Delgadillo, Mayor
ATTEST
Heidi Luce, City Clerk
To: Honorable City Council
From: John Moreno, City Manager
By: John King, AICP, Interim Planning Director
Date: January 28, 2025
SUBJECT: CLEARWATER SPECIFIC PLAN UPDATE
The City Council adopted the original Clearwater East Specific Plan by ordinance in 1987.

Clearwater East is a 68-acre area south of Rosecrans Avenue, west of Paramount Boulevard, north of Somerset Boulevard, and east of the Union Pacific Railroad. A comprehensive update to the Clearwater East Specific Plan, renamed the Clearwater Specific Plan, is underway with Moore Iacofano Goltsman, Inc. (MIG) as a consultant.

During the public comments portion of the December 17, 2024 City Council meeting, Beau Bianchi, representing Modern Development Company (owner of the properties where the Paramount Swap Meet, Paramount Drive-in Theatres, and Bianchi Theatres operate), requested greater housing density and more flexibility with the specific plan update. In response, the City Manager suggested the City Council review an informational item to review the proposed density and other elements of the draft plan.

This evening, Planning Department and MIG staff will review the draft Clearwater Specific Plan.

To: Honorable City Council
From: John Moreno, City Manager
By: Kim Sao, Finance Director
Date: January 28, 2025
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR FISCAL YEAR ENDED JUNE 30, 2024

BACKGROUND
Government Code Sections 40804 and 53891 and various other federal and state regulations provide that the City prepare and publish annual audited financial statements.

The City’s new independent auditors, The Pun Group LLP, an independent public accounting firm, have concluded their financial audit of the City’s Annual Comprehensive Financial Report (Annual Report or ACFR) for the fiscal year ending June 30, 2024. The reports will be posted on the City’s website and distributed to other agencies as provided by law.

The Annual Report for fiscal year ending June 30, 2024 summarizes the financial activities of the City, its component units that included the Paramount Housing Authority and the Paramount Parking Authority, and the Successor Agency for the Paramount Redevelopment Agency as required by the Governmental Accounting Standards Board (GASB).

DISCUSSION
The Annual Report contains an unmodified opinion, which means that the auditor has opined that the ACFR presents fairly, in all material respects, the financial activities of the City, its component units, and the Successor Agency for the Paramount Redevelopment Agency, in accordance with generally accepted accounting principles (GAAP).

An oral presentation, given at the January 28th City Council meeting, will incorporate a review of the audit and the City’s financial position as of the fiscal year ended June 30, 2024.

FISCAL IMPACT
None.

Agenda Report January 28, 2025
ACFR FOR FISCAL YEAR ENDED JUNE 30, 2024 Page 2

VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 6: Efficient, Effective, and Fiscally Responsible - Deliver an efficient and effective City government in a fiscally responsible, transparent and collaborative manner.

RECOMMENDED ACTION
Receive and file the Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2024.

ANNUAL

COMPREHENSIVE

FINANCIAL REPORT

CITY OF PARAMOUNT, CALIFORNIA
ANNUAL

COMPREHENSIVE

FINANCIAL REPORT

CITY OF PARAMOUNT, CALIFORNIA

CITY OF PARAMOUNT, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2024
Prepared by the Finance Department
Kim Sao
Finance Director

Roster of Officials
City Council
Annette C. Delgadillo, Mayor
Peggy Lemons, Vice Mayor
Isabel Aguayo, Councilmember
Brenda Olmos, Councilmember
Vilma Cuellar Stallings, Councilmember
City Attorney
John Cavanaugh
City Manager
John Moreno
Assistant City Manager
Grissel Chavez
City Clerk
Heidi Luce
Community Services Director
David Johnson
Finance Director
Kim Sao
Planning Director
John Carver
Public Safety Director
Margarita Matson
Public Works Director
Adriana Figueroa
City of Paramount
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page

INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................................... i Organizational Chart ............................................................................................................................................... viii Certificate of Achievement for Excellence in Financial Reporting (GFOA) ........................................................... ix

FINANCIAL SECTION
Independent Auditors’ Report on the Audit of the Financial Statements ................................................................ 1 Management’s Discussion and Analysis (Unaudited) ................................................................................................. 5 Basic Financial Statements:

Government–Wide Financial Statements:

Statement of Net Position .................................................................................................................................. 19 Statement of Activities ...................................................................................................................................... 20 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet .............................................................................................................................................. 27 Reconciliation of the Governmental Funds Balance Sheet
of Governmental Funds to the Statement of Net Position .................................................................... 28 Statement of Revenues, Expenditures,
and Changes in Fund Balances ............................................................................................................. 29 Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .................................................................................................... 30

Proprietary Fund Financial Statements:

Statement of Net Position - Proprietary Funds ........................................................................................... 33 Statement of Revenues, Expenses, and Changes
in Fund Net Position - Proprietary Funds ............................................................................................. 34 Statement of Cash Flows - Proprietary Funds ............................................................................................ 35 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ........................................................................................................... 39 Statement of Changes in Fiduciary Net Position ........................................................................................ 40 Notes to the Basic Financial Statements .............................................................................................................. 45 City of Paramount
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Budgetary Comparison Schedules:

General Fund ............................................................................................................................................................. 89 Other Grants Special Revenue Funds ....................................................................................................................... 90 Notes to the Budgetary Comparison Schedules .............................................................................................................. 91 Schedule of Proportionate Share of the Net Pension Liability ....................................................................................... 92 Schedule of Contributions – Pensions ............................................................................................................................ 94 Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios ......................................... 96 Schedule of the Contributions – Other Postemployment Benefits ................................................................................. 98 Supplementary Information:

Nonmajor Governmental Funds:

Combining Balance Sheet - Nonmajor Governmental Funds ................................................................................ 106 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ....................................................................................... 112 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:

Community Development Block Grant Special Revenue Fund ...................................................................... 118 HOME Partnership Act Special Revenue Fund .............................................................................................. 119 HOME American Rescue Plan. ....................................................................................................................... 120 Paramount Housing Authority Special Revenue Fund .................................................................................... 121 After School Education and Safety Special Revenue Fund ............................................................................ 122 State Gas Tax Special Revenue Fund .............................................................................................................. 123 Traffic Safety Special Revenue Fund .............................................................................................................. 124 Waste Reduction Fees Special Revenue Fund ................................................................................................ 125 AB2766 Subvention Funds Special Revenue Fund ......................................................................................... 126 Disability Access and Education Fees Special Revenue Fund ........................................................................ 127 SB1 Road Maintenance & Rehabilitation Account Special Revenue Fund .................................................... 128 Proposition A Transit Tax Special Revenue Fund .......................................................................................... 129 Proposition C Transit Tax Special Revenue Fund .......................................................................................... 130 Measure R Transit Tax Special Revenue Fund ............................................................................................... 131 Measure M Transit Tax Special Revenue Fund .............................................................................................. 132 Measure W Safe Clean Water Special Revenue Fund .................................................................................... 133 Measure A Parks Special Revenue Fund......................................................................................................... 134 Sewer Reconstruction Fees Special Revenue Fund ......................................................................................... 135 Public Art Fees Special Revenue Fund ........................................................................................................... 136 Public Access Fees Special Revenue Fund ..................................................................................................... 137 Storm Drain Fees Special Revenue Fund ........................................................................................................ 138 General Plan Fees Special Revenue Fund ....................................................................................................... 139 Service Assessments Special Revenue Fund ................................................................................................... 140 Community Benefit Agreement Special Revenue Fund ................................................................................. 141 City of Paramount
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)
Page

STATISTICAL SECTION (UNAUDITED)
Table 1 - Net Position by Component ............................................................................................................ 146 Table 2 - Changes in Net Position .................................................................................................................. 148 Table 3 - Fund Balances of Governmental Funds .......................................................................................... 152 Table 4 - Changes in Fund Balances of Governmental Funds ....................................................................... 154 Table 5 - Taxable Sales by Category .............................................................................................................. 156 Table 6 - Direct and Overlapping Sales Tax Rates ........................................................................................ 159 Table 7 - Principal Sales Tax Producers ......................................................................................................... 160 Table 8 - Ratios of Outstanding Debt by Type ............................................................................................... 161 Table 9 - Ratios of General Bonded Debt Outstanding .................................................................................. 162 Table 10 - Direct and Overlapping Governmental Activities Debt ................................................................ 163 Table 11 - Legal Debt Margin Information .................................................................................................... 164 Table 12 - Pledged-Revenue Coverage .......................................................................................................... 166 Table 13 - Demographic and Economic Statistics ......................................................................................... 167 Table 14 - Principal Employers ...................................................................................................................... 168 Table 15 - Full-time Equivalent City Employees by Function ....................................................................... 169 Table 16 - Operating Indicators by Function ................................................................................................. 170 Table 17 - Capital Asset Statistics by Function .............................................................................................. 172 This page intentionally left blank.
i
ANNETTE C. DELGADILLO
Mayor

PEGGY LEMONS
Vice Mayor

ISABEL AGUAYO
Councilmember

BRENDA OLMOS
Councilmember

VILMA CUELLAR STALLINGS
Councilmember
Honorable City Council and Residents of the City of Paramount INTRODUCTION It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Paramount for the fiscal year ended June 30, 2024. The responsibility for the accuracy of the presented data and the completeness and fairness of the presentation rests with the City's management. The report includes the combined transactions and financial position of all funds of the City of Paramount, including its blended component units for which the City Council is also the governing body:
 Paramount Housing Authority
 Paramount Parking Authority
 Paramount Industrial Development Authority
 Paramount Public Financing Authority
The enclosed financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) as recommended by the Governmental Accounting Standards Board (GASB). The complete report is divided into three sections:

Introduction The introductory section includes this Letter of Transmittal and other information to familiarize the read with the City: A Roster of Officials, an Organizational Chart, and prior year Award for Financial Reporting.

Financial The financial section consists of five parts: 1) Independent Auditor’s Report, 2) Management’s Discussion and Analysis (MD&A), 3) Basic Financial Statements and accompanying Notes to Basic Financial Statements, 4) Required Supplementary Information, and 5) Supplementary Information that includes additional statements and schedules for nonmajor governmental funds.

Statistical The statistical section includes pertinent financial and nonfinancial data that present historical trends and other information about the City in a multi-year basis
16400 Colorado Avenue, Paramount, CA 90723-5012, Ph: 562-220-2000, Fax: 562-630-6731 www.paramountcity.com
December 27, 2024
ii

The Independent Auditors’ Report from the City's certified public accountant, The Pun Group LLP, evaluated whether the financial report was prepared in accordance with the General Accepted Accounting Principles (GAAP) and fairly presented the City’s financial position, results of the operations, and cashflows as of June 30, 2024. Based on their evaluation, they issued an Unmodified (clean) opinion, which means the financial statements are free of material misstatements and conform to GAAP.

Management also represents that to the best of our knowledge and belief, the enclosed data is accurate in all material respects, and fairly presents the financial position and results of operations of the City of Paramount and its related organizations. We have an established internal control structure designed to ensure accurate financial reporting, safeguard our assets, and compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City‘s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement.

Included are the Management’s Discussion and Analysis (MD&A) and all disclosures necessary to enable the reader to gain an understanding of the City’s financial activities as well as the GASB requirement that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of the MD&A. This letter of transmittal you are currently reading is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found immediately following the Independent Auditor’s Report in the financial section of the statements.

In a location first settled in the early 1800s as part of a Spanish land grant, the City of Paramount is fifteen miles southeast of downtown Los Angeles. Known in the 1930s as the communities of Hynes and Clearwater, the area was a nationally prominent center of the dairy and hay industries. Hynes-Clearwater joined together under the common name of Paramount in 1948, grew steadily, and in 1957 incorporated as a City.

Today, Paramount provides a broad range of municipal services. Approximately five square miles in size, Paramount has a population of approximately 51,000 and more than 3,000 businesses.

The City offers attractive residential neighborhoods, easy access to major shopping centers, and many cultural and recreational activities in its 60 acres of parkland. The City's business community has helped in the growth and development of the Southeast Los Angeles area, and today it is an important contributor to the greater Los Angeles commercial and industrial marketplace.

INTRODUCTION
(cont.)

PROFILE OF THE

CITY OF

PARAMOUNT
iii
The City Council reviews and adopts an annual budget in June of each fiscal year to provide guidance for the general operation of the City. In June 2024, the City Council revised the Fund Balance Policy that was adopted in May 2023 to improve operational stability and ensure that the City is better prepared for the financial risk of economic downturns and catastrophic emergencies. The Government Finance Officer’s Association (GFOA) recommends that cities maintain a minimum reserve of 16% - 17% of the operating revenue or expense that is equal to two months of the fiscal years. As of fiscal year ending June 30, 2024, the City committed $20.1 million for operating reserve representing 50% of the FY 2023-24 adopted General Fund operating expenditure budget, and $3.9 million for economic uncertainty representing 10% of the actual FY 2023-24 General Fund expenditures. The combined 60% reserve demonstrates the City’s strong commitment to fiscal responsibility and financial stability. This level of reserve ensures the City’s ability to maintain uninterrupted operations and provide essential services in the event of unforseen circumstances, such as economic downtowns, emergencies, or unexpected revenue shortfalls. The City takes pride in this high reserve level which provides a cushion for long-term sustainability and positions the City to address future opportunities or challenges without compromising core services.

The City Council annually adopts, by resolution, a statement of investment policy for the City’s funds. The last major revisions to the investment policy were made in June 2022, which narrowed down the investment options to those considered safest and extended the maturity period from three years to five years. The policy defines the objectives and priorities of the investment program, stressing safety, liquidity, and yield of funds as the highest priorities. The third priority, yield, is the achievement of the maximum yield possible within the constraints of the first two objectives. The investment policy was certified by the California Municipal Treasurers Association

FUND BALANCE
POLICY
CASH

MANAGEMENT

POLICIES &

PRACTICES
iv
Policy Certification Program, which provides professional guidance that meets industry best practices for public sector investing. The City has since begun to engage more proactively in investment activities that allow us to earn a return on our idle cash without jeopardizing our primary objectives.

The Finance Director is charged with the responsibility of custody and investment of surplus City funds. She submits a quarterly investment report to the City Council that provides a summary of the status of the current investment portfolio and material transactions entered during the quarter. In FY 2024, the City posted investment earnings of $2.5 million compared to $677 thousand in FY 2023 and $43 thousand in FY 2022. Of the $2.5 million, $1.6 million was allocated to the General Fund.

The City participates in the California Joint Powers Insurance Authority (CJPIA). The purpose of this organization is to reduce the cost of liability insurance coverage by having the member cities act as self-insurers among themselves. Note 10 of the Notes to Basic Financial Statements (Pages 80-82) describes in depth the premium and liability coverage of the members.

As of June 30, 2024, the General Fund balance is $50,504,532, which is an increase of $3,305,282 from the prior year due to increases in revenues for specific purposes; and $2.4 million is unassigned and available for spending at the City’s discretion. Details on the General Fund balance can be found in Note 12 to Basic Financial Statements on page 83.

This year, the City achieved several key milestones that reflect our commitment to fiscal responsibility and sustainable financial management. Among these accomplishments are:
 Business License Ordinance Update: On November 5, 2024, voters approved, by more than the required 2/3 majority vote, a restructured business license tax ordinance, which takes effect January 2025. This initiative modernizes the City’s approach to business licensing, ensures equitable taxation, and strengthens our capacity to support local business while enhancing revenue streams.
 Comprehensive Fee Study: The City successfully completed a comprehensive fee study to update our user fees. This ensures the City maximizes the recovery of the costs of services that provide direct benefits to individual users while maintaining fairness and transparency. While maximizing cost recovery, the City continues to prioritize subsidizing essential programs – such as parks and recreation – that have direct and meaningful impact on our residents.

RISK

MANAGEMENT
ACCOMPLISHMENTS &

OUTLOOK
v

Capital Improvement Completion
During FY 2023-24, as we do every year, we completed the construction of numerous street improvement projects, including street and sidewalk repairs or installations, traffic signal light installation, perimeter wall on 70th Street, and continued resurfacing of neighborhood streets.

Deferred maintenance and structural improvements were also completed during the fiscal year. Playgrounds were replaced at Paramount Park, Progress Park, All American Park, and Dills Park. Various City facility improvements were also completed such as Paramount Park roof replacement, Paramount pool interior upgrades, Salud Park portable restroom and Paramount Park outdoor restroom renovation. We completed a sustainability project of converting interior and exterior lighting at the City Yard to LED.

New Developments/Continuing Programs
Looking forward, for FY 2024-25, we have budgeted a total of $14,297,200 for capital improvement projects that included $5.8 million in carryover projects and $8.5 million in new projects to continue street, sidewalk and alley improvements; affordable housing projects, downtown electrical upgrade and Dills Park irrigation repairs; and sustainability project such as drywell installation at Meadows Park and Village Park.

STAR Program
In FY 2024-25, we will make substantial modifications to the Success Through Academics and Recreation (STAR) Program that began in January 2007. The program is funded by an After School Education and Safety Grant from the State of California in which the City will continue to apply. In FY 2024-25, operational responsibilities will shift from City staff to a Community Based Organization that is skilled in operating after school programs. STAR provides academic assistance and recreational activities for students in kindergarten grades through eighth.

Water Operations
As mentioned above, the City of Paramount prides itself on providing a high level of service at a reasonable cost. The City’s water operations are no exception. We are constantly initiating efforts to keep our water production facilities and distribution lines in sound condition. We are anticipating the completion of our new well (Well 16) located at Garfield and Jackson in early 2025. We started the design and drilling of this new water well in FY 2015-16 with a $6.7 million loan from California Infrastructure and Economic Development Bank (IBank) to complete the rest of the well construction. This project is especially vital in California where the reliance on imported water is becoming more and more expensive and less and less available.

Once built, the new well will help us come closer to being self-sufficient in this important area. Additionally, starting March 2024, the City began replacing outdated water meters citywide with the digital Advanced Metering Infrastructure (AMI) water meters that is a system of communications networks allowing usage data to be communicated to the user, the data management system and the City’s utility staff.

ACCOMPLISHMENTS &

OUTLOOK
(cont.)
vi
Also, in our effort to proactively maintain and improve our water system, the City Council approved a water rate increase that took effect January 1, 2022. The water rate increase will phase in gradually over a five-year period with the fourth-year increase taking effect January 1, 2025. Our rates continue to be among the lowest in all 14 neighboring water agencies; however, the high cost of purchasing water during the last few years has depleted the Water Fund balance to an unsustainable level.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Paramount for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. The City has received the Certificate of Achievement Award from the GFOA since 1982. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized ACFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

The preparation of this report could not have been accomplished without the hard work and dedicated services of the City’s financial management staff. We would like to express our appreciation to all the members of the Finance team and The Pun Group LLP, the City’s independent auditors, for their expertise, guidance, assistance and professionalism in preparing this year’s report.

Finally, we would like to express our sincere thanks to the City Council, whose strong and effective leadership and continuous support has made this another successful year.

CITY OF PARAMOUNT
John Moreno, City Manager Kim Sao, Finance Director

CERTIFICATES
OF

ACHIEVEMENT
ACKNOWLEDGEMENTS
vii
Roster of Officials
City of Paramount, CA
on June 30, 2024

CITY COUNCIL
Annette C. Delgadillo, Mayor
Peggy Lemons, Vice Mayor
Isabel Aguayo, Councilmember
Brenda Olmos, Councilmember
Vilma Cuellar Stallings, Councilmember

Planning Commission
Gordon Weisenburger, Chair
Ernie Esparza, Vice Chair
Javier Gonzalez, Commissioner
David Moody, Commissioner
Linda Timmons, Commissioner
City Officials
John Moreno, City Manager
John E. Cavanaugh, City Attorney
Grissel Chavez, Assistant City Manager
John Carver, Planning Director
Adriana Figueroa, Public Works Director
David Johnson, Community Services Director
Margarita Matson, Public Safety Director
Kim Sao, Finance Director
Parks & Recreation Commission
Charlene Landry, Chair
Steve Yanez, Vice Chair
Jennifer Alcaraz, Commissioner
Shirley Grayson, Commissioner
Austin Moreno, Commissioner
Public Safety Commission
Robert Cruz, Chair
Gerardo Ruiz, Vice Chair
Marcelina Bridges, Commissioner
Dora Sanchez, Commissioner
Public Works Commission
Rita Aguilar, Chair
Georgina Arceo, Vice Chair
Jaime Abrego, Commissioner
Alvin Parks, Commissioner
Rosemary Vasquez, Commissioner
Senior Services Commission
Martha Garcia, Chair
Anna Mageno, Vice Chair
Elsa Padilla, Commissioner
Claudia Quinones, Commissioner
Patricia Winiecki, Commissioner
viii
Assistant City
Manager
Organizational Chart
City of Paramount, CA
on June 30, 2024

CITIZENS OF PARAMOUNT
City Manager
 Council staff support
 Develop policies
 Direct city services
City Commissions
 Planning Commission
 Parks & Rec. Commission
 Public Safety Commission
 Public Works Commission
 Senior Services Commission
City Attorney
 Provides legal
assistance
 Reviews resolutions,
ordinances, contracts,
and other documents
 Court litigation
Administrative
Services
 Management
analysis
 Economic
development
 Legislative
analysis
 Special projects
 Computer/phone
maintenance
 Public information
Human Resources
Services
 Recruiting
 Testing
 Training
 Benefit
administration
 Risk management
Public Safety
Director
Planning
 Planning /zoning
 Building/Safety
 Development
 Housing
 Property
improvement
programs
Public Safety
 Police contract
 Animal control
 Parking control
 Emergency
preparedness
 Crossing guards
 Neighborhood
watch
 Code enforcement
 Homeless
services
Public
Works
Director
Community
Services
Director
Finance
Director
Public Works
 Equipment
repair
 Facility repair
 Park
maintenance
 Street repair
 Engineering
 Water utility
 Infrastructure
 Environmental
sustainability
Community
Services
 Parks and
playgrounds
 Aquatics
 Youth and adult
sports
 Elderly Nutrition
Program
 Paramount
Education
Partnership
 S.T.A.R. After
School
Program
Finance
 Accounting
 Payroll
 Cash
management
 General ledger
 Budget
management
 Grants
management
 Capital projects
 Data
processing
 Business
licensing
 Water billing
City Clerk
 Manage central records
 Conduct elections
City Council
Planning
Director
ix
Award for Financial Reporting
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Paramount for our Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023.

To be awarded a Certificate of Achievement for Excellence, a governmental unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, whose contents conform to industry standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement for Excellence is valid for a period of one year only. We believe our current June 30, 2024 financial report continues to conform to Certificate of Conformance Program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

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200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and the Members of the City Council of the City of Paramount
Paramount, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Paramount, California (the “City”) as of and for the year ended June 30, 2024, and the related notes to the basic financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial 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.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (“Government Auditing Standards”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

To the Honorable Mayor and the Members of the City Council of the City of Paramount
Paramount, California

2 Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios, the Schedule of Contributions – Pensions, Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedules of Contributions – Other Postemployment Benefits be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

To the Honorable Mayor and the Members of the City Council of the City of Paramount
Paramount, California

3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Combining and Individual Fund Financial Statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Combining and Individual Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Santa Ana, California
December 27, 2024
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City of Paramount
Management’s Discussion and Analysis (Unaudited)
June 30, 2024
5 As management of the City of Paramount, California (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i through vi of this report.

Financial Highlights
 The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of FY 2023-24 by $133,042,790 (net position). This amount increased by $6,937,293 from last year.
 As of June 30, 2024, the City’s governmental funds reported combined fund balances of $68,483,274. Of this amount, $341,301 (0.5%) of the total fund balances is non-spendable, $15,312,987 (22.4%) is restricted, $26,435,892 (38.6%) is committed, $23,968,528 (35.0%) is assigned, and $2,424,566 (3.5%) is unassigned and available for spending at the City’s discretion.
 At June 30, 2024, the Water Enterprise Fund reported an unrestricted net position of negative $4,194,981, marking the first time this balance has turned negative. This is primarily due to a structural imbalance and the City has planned action to address the structural deficit.

Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements, which comprised three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains the Required Supplementary Information (RSI) and other supplementary information in addition to the basic financial statements themselves.

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 and deferred inflows of resources, with the difference 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 government’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, Community Development, Public Safety, Community Services, and Public Works. The business-type activity of the City includes the City’s Water Utility operations.

The government-wide financial statements include not only the City itself (known as the primary government), but also the legally separate Paramount Housing Authority and Paramount Parking Authority for which the City is financially accountable. Financial information for these component units has been included as an integral part of the primary government.

City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2024
6 The government-wide financial statements can be found on pages 19-21 of this report.

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 three categories: governmental funds, proprietary funds, and fiduciary 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 a government’s near-term financing 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 government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and 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 26 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 and Other Grants fund, which are major funds. Debt Service is presented separately to account for the Pension Obligation Bond fund. Data from the other 23 governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining and individual fund financial statements and schedules.

The City adopts an annual appropriated budget for each of its governmental funds, except the Paramount Parking Authority fund. A budgetary comparison statement has been provided for the general fund and each major special revenue fund to demonstrate compliance with the budget.

The governmental fund financial statements can be found on pages 27-30 of this report.

Proprietary funds. The City maintains two different types of proprietary funds, enterprise and internal service funds.

Enterprise funds are used to report the same functions presented as business type activities in the government-wide financial statements. The City uses an enterprise fund to account for its water utility. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses an internal service fund to account for its equipment replacement and maintenance. Because this service predominantly benefits governmental rather than business type functions, it has been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements (business type activities), only in more detail. Information is presented separately in the proprietary fund statement of net positio6n and in the proprietary fund statement of revenues, expenses, and changes in fund net position for the Water fund, which is considered to be a major fund. The Equipment Replacement internal service fund is also presented in the proprietary fund financial statements.

The proprietary fund financial statements can be found on pages 33-35 of this report.

City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2024
7 Fiduciary fund. The City maintains three fiduciary funds, which are the Redevelopment Obligation Retirement Private-Purpose Trust Fund and the Community Redevelopment Property Trust Fund, which are combined and reported as the Successor Agency for the Paramount Redevelopment Agency, and the Custodial Fund. These funds are used to account for situations where the City’s role is purely custodial. They are not reflected in the government-wide financial statements because the resources of these funds are not available to support the City’s own programs.

The fiduciary fund financial statements can be found on pages 39-40.

Notes to basic financial statements. The notes 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 45-85 of this report.

Required Supplementary Information. This section includes the Budgetary Comparison Schedules of the major governmental funds. It also includes the Schedule of the City’s Net Pension Liability and Schedule of Contributions for the City’s pension program – Miscellaneous Plan of the California Public Employees Retirement System, Schedule of Changes in Net Other Postemployment Liability and Related Ratios, and Schedule of Contributions for Other Postemployment Benefits. This section can be found on pages 87-99.

Supplementary information. The combining financial statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information. Individual fund financial schedules for non-major governmental funds are located in this section as well. Combining and individual fund statements and schedules can be found on pages 104-141 of this report.

Government-wide Financial Analysis
The following table presents a summarization of the City’s assets, deferred outflows of resources, liabilities, deferred inflows of resources and net position for its governmental and business type activities. As noted earlier, a government’s net position may serve over time as a useful indicator of its financial position.

Governmental Business-Type
Activities Activities Total
2024 2023 2024 2023 2024 2023
Current and other assets $ 80,686,020 $ 70,954,966 $ 15,424,553 $ 7,566,736 $ 96,110,573 $ 78,521,702 Capital assets, net 76,458,433 76,210,309 33,362,750 27,304,795 109,821,183 103,515,104 Total assets 157,144,453 147,165,275 48,787,303 34,871,531 205,931,756 182,036,806 Deferred outflows of resources 12,062,890 14,365,419 1,750,321 2,117,355 13,813,211 16,482,774 Current liabilities 8, 5,784,288 726,850 6,489,858 1,495,343 15,216,708 7,279,631 Long-term liabilities 31, 31,238,273 287,594 25,342,331 14,472,215 56,629,925 45,710,488 Total liabilities 40, 37,022,561 014,444 31,832,189 15,967,558 71,846,633 52,990,119 Deferred inflows of resources 12,986,206 16,929,065 1,887,338 2,494,899 14,873,544 19,423,964 Net position
Net investment in capital assets 76,132,951 75,764,653 21,013,078 16,976,379 97,146,029 92,741,032 Restricted 16,004,360 12,716,782 - - 16,004,360 12,716,782 Unrestricted 24,087,382 19,097,633 (4,194,981) 1,550,050 19,892,401 20,647,683 Total net position $ 116,224,693 $ 107,579,068 $ 16,818,097 $ 18,526,429 $ 133,042,790 $ 126,105,497 City of Paramount - Summary of Net Position
June 30, 2024 and 2023
City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2024
8 The City’s total assets increased from $182,036,806 to $205,931,756 in the fiscal year and the City’s total liabilities increased from $52,990,119 to $71,846,633. Pension and Other Post-Employment Benefits (OPEB) related deferred outflows of resources decreased from $16,482,774 to $13,813,211 and deferred inflows of resources decreased from $19,423,964 to $14,855,544. For further information, please refer to Notes 7 and 8 on pages 70-79. As a whole, the City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $133,042,790 at June 30, 2024, an increase of $6,937,293 from the prior year, primarily due to an increase in assets as a result of high general fund surplus.

Governmental activities. For the year ended June 30, 2024, the following condensed summary of the City’s governmental activities shows total net position equal to $116,224,693, where the change in net position is $8,645,625.

The operating contributions and grants show a decrease of $7,526,434 from prior year and the total program expenses remained similar in the range of $55 million. The general revenues increased from prior year; the investment activities in the strong market resulted in an increase of $1,445,883 in investment earnings and overall tax revenues increased by approximately $919,000.

Business-type activities. Business-type activities’ net position decreased by $1,708,332 from $18,526,429 to $16,818,097, mostly due to the decrease in operating contributions and grants by $3,438,975. Total expenses remained similar to prior year at approximately $11 million.

City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2024
9 Revenues
 At June 30, 2024, total revenue is $73,253,507, a decrease of 12% or $10,301,723 from prior fiscal year. The decrease in operating contributions and grants by $10,965,409 is primarily due to the conclusion of the ARPA grant in FY 2023.
 Sales tax revenues decreased by $73,752 and transaction & use tax revenues increased by $438,162, with a net combined increase of 4.8% or $364,410. This is mainly due to the increase in the cost of commodities and increase in consumer purchases.
 Utility user’s tax increased by 3.6% or $159,868 as a result of higher utility costs.  Franchise tax fees increased by 12.5% or $275,063 mainly due to higher Edison franchise fees.  Property tax increased by 1.2% or $36,425 due to higher property valuations.  Investment earnings increased by 190.1% or $1,632,537 due to proactive investing of idle cash and higher yields.  Motor vehicle license fee increased by 3.9% or $317,630 due to higher allocation for the City.  Other revenue decreased by 36% or $891,927 due to one-time settlement in FY23.

Key elements of this year’s summary of activities are as follows:
 The major revenue sources were sales tax, transaction & use tax, motor vehicle license fees, and various operating contributions and grants.
 In the operating contributions and grants category, the City received some significant grant sources including:
o $1,962,850 After School Education and Safety Grant for the Success Through Academics and Recreation (S.T.A.R.) Program
o $1,484,938 State Gas Tax
o $1,485,759 Proposition A Transit Tax
o $1,424,190 SB1 Road Maintenance & Rehabilitation Account o $1,232,945 Proposition C Transit Tax
o $1,053,820 Measure M Transit Tax
Sales tax, 19%
Operating
contributions and
grants, 16%
Transaction & use
Motor vehicle license tax, 13%
fees, 13%
Capital contributions
and grants, 10%
Utility user's Tax, 7%
Charges for services,
5%
Property tax, 5%
Franchise tax, 4%
Investment earnings, 3%
Other revenue, 2% Business license tax, 2%
Revenues by Source - Governmental Activities
Year Ended June 30, 2024
City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2024
10 o $952,457 Measure R Transit Tax
o $262,557 Public Art Fee
o $283,139 Community Development Block Grant
o $707,386 Measure W Safe Clean Water
o $888,470 Community Benefit Agreement
Expenses
Total program expenses remained similar to the prior year, from $54,487,389 to $55,075,250, which is an increase of 1% or $587,861. The major source of increase in expense was $3,666,284 from the Community Services category, where various events and activity services were provided to the community. On the other hand, Community Development and General Government expenses decreased by $1,307,752 and $1,148,231, respectively, due to decrease in pension expense in FY24 and the completion of the ARPA funded programs.

The top three expense activities were Public Safety, 28%, Public Works, 28%, and Community Services at 21%.

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.

Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

Public Safety, 28%
Public Works, 28%
Community
Services, 21%
General
Government, 16%
Community
Development, 6%
Interest and Fiscal
Charges, 1%
Expenses by Function
Year Ended June 30, 2024
City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2024
11 As of June 30, 2024, the City’s governmental funds reported combined ending fund balances of $68,483,274, an increase of $6,793,178 in comparison with the prior year. The increase was primarily related to the surplus in the general fund and accumulation of various grant funds that will be expended in future years. The fund balances are classified as follows to indicate the level of constraint.
 $341,301 or 0.5% consists of non-spendable fund balances, which include land held for resale ($236,544) and prepaids/deposits ($104,757);
 $15,312,987 or 22.4% consists of the restricted fund balances of various grants and assessments ($15,441,041), Debt Service ($10,501) and the Paramount Parking Authority ($2,371);  $26,435,892 or 38.6% consists of committed fund balances for operation ($20,058,500), economic uncertainty and infrastructure ($4,409,000), and various development impact fees ($1,968,392);  $23,968,528 or 35.0% consists of the General Fund assigned fund balances for compensated absences ($692,000), coronavirus related ($5,129,834), capital projects ($13,762,448), self-insurance ($800,000), special projects ($527,620), and retiree benefit obligation ($2,915,700);  2,424,566 or 3.5% of the ending balance is the unassigned fund balance, which is available for spending at the government’s discretion.

The General Fund is the chief operating fund of the City of Paramount. At June 30, 2024, the General Fund balance reached $50,504,532. In July 2024, the City Council revised the Fund Balance Policy that was adopted in May 2023 to provide guidance regarding its fund balances. The City committed $24.07 million of its General Fund balance for operating reserve, and economic uncertainty and infrastructure and facililities emergencies, representing 60% of the FY 2023-24 General Fund adopted operating budget. Additional details of the fund balance categories can be found in Note 12 of the Notes to Basic Financial Statements.

Other Grants Special Revenue Fund ended the year with $280,103 in restricted fund balance, an increase of $142,338 from FY23. Expenditures increased $389,201 (24%) and revenue increased $538,352 (34%) due to one-time Department of Education grant that provided funding for scholarship and the Spane Park facility improvement.

Proprietary funds. The City’s proprietary fund provides the same type of information found in the government- wide financial statements, but in more detail.

Unrestricted net position of the City’s Water Utility operations at the end of the year amounted to a negative balance of $4,194,981, a decrease of $5,745,031 from the prior year. The decrease is due to the delay in the opening of Well 16 for the last few years, resulting in the City having to purchase imported water during a time when the cost of water is at an all-time high. Furthermore, the conclusion of the ARPA fund, which had helped pay for operating expenses in FY23 and prior, was no longer available. To address this structural deficit, the City is again conducting a water rate study to reassess its water rate structure.

The City is also addressing the negative debt covenant ratio through several initiatives. Operational improvements at the well site are in the final stages, with programming and testing near completion and all permitting requirements expected to be met by early 2025. Additionally, a water rate study is underway to reassess the current fee structure. The installation of new water meters citywide, now over 90% complete, will enhance the accuracy of water usage readings, recovering lost revenue. This recovered revenue will offset the debt incurred for the meter replacement, ensuring the project is cost-neutral. To provide cash flow support, the General Fund advanced $850,050 in FY 2024 and will provide an additional $850,050 in FY 2025 through a loan agreement. These measures aim to strengthen the water fund’s financial position and address the current deficit
City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2024
12 General Fund Budgetary Highlights
Following is a summary of budgetary changes and actual results for General Fund, revenues, expenditures, and other financing sources (uses):

Variance with the Final Budget
Overall, total actual revenues came in $3,219,696 higher than the final estimate mainly due to higher tax revenues of $1,871,089 and other revenues, which came in $1,337,403 higher than estimated. The variances in other revenues include revenue from use of property $1,060,353, fines and citations $115,377, and miscellaneous revenues $212,886.

On the other hand, actual expenditures were $15,887,023 lower than the final budget mainly due to delays in capital improvement project and professional services.

Capital Asset and Debt Administration
Capital assets. As of June 30, 2024, the City’s investment in capital assets for its governmental and business- type activities totaled $109,821,183, net of accumulated depreciation. This investment includes land, buildings and improvements, machinery and equipment, park facilities, construction in progress, water mains, water distribution equipment, and infrastructure.

Significant capital improvements events during the year included the construction of various street and sidewalk improvements and various parks and facilities improvements.

City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2024
13 Additional information on the City’s capital assets can be found in Note 5 of the Notes to Basic Financial Statements.

Long-term liabilities. As of June 30, 2024, the City of Paramount had total outstanding liabilities of $56,629,925. Of this amount, $25,342,331 is a liability of the business-type activity.

State statutes limit the amount of general obligation debt a governmental entity may issue to 15 percent of its total assessed valuation. The current debt limitation for the City is $197,623,903, based on the assessed value of all real and personal property of the City, all of which is excess because the City has no outstanding general obligation debt.

Additional information on the City’s long-term debt can be found in Note 6 of the Notes to Basic Financial Statements.

Future Outlook and Next Year’s Budget
Over the past few years, despite unprecedented challenges of the COVID-19 pandemic, the City has continued to effectively service and support our residents and businesses. However, as of June 30, 2024, revenues stabilized, and we remain committed to ensuring expenditures do not outpace incoming revenues. Inflation, which peaked at 8% in June 2022, has since decreased to 3.2% in June 2024.

City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2024
14 Like many California cities, increases in retiree pension and health care costs will continue to put an upward pressure on the Budget. In November 2021, the City took advantage of the favorable market rate by issuing the Pension Obligation Bond (POB) to refinance and a large portion of the unfunded actuarial liability (UAL) to CalPERS. While the UAL pension liability fluctuated in accordance with CalPERS’ investment returns, the POB bond is a debt with a fixed borrowing rate for the term of the bond that will mature in 2038.

The City continues to be vigilant in its spending habits and exploring multiple ways to minimize costs and increase revenues by effectively managing its way of doing business, enhancing collection efforts, and preventing revenue leakage. In November 2024, the City Council adopted a new fee schedule set to take effect February 2025. This aligns with the City’s efforts to ensure the recovery of costs associated with providing services to the users. Additionally, the City modernized its business license tax structure, transitioning from an employee-based system to a gross-receipts based system, which will take effect in January 2025. While this change enhances the city’s revenue streams, it also promotes equitable taxation.

The City continues to utilize and seek out new grant fundings to pay for projects and one-time costs, which provided needed support to our residents, protect essential reserves, rebuild critical services, and plan for facility and infrastructure improvements. As such, in November 2024, the City applied for a $19,957,145 grant with the Environmental Protection Agency under its Environmental and Climate Justice Block grant program. The City intends to address traffic-based pollution and invest in renewable energy that helps to respond to air quality, economic justice, and energy burden challenges faced by Paramount residents.

In addition, the City revised its investment policy and began to invest more actively beginning in FY 2023. Where the City normally invested all its idle cash in the Local Agency Investment Fund (LAIF), the City has moved its idle cash to the California Asset Management Program (CAMP), a fully liquid investment pool, to take advantage of its more favorable yield. The City is now diversifying its investment portfolio, taking advantage of short-term earnings, as well as laddering its maturity dates up to five years to ensure that the City will continue to earn a healthy return during an economic downturn. As of June 30, 2024, the City’s investment earnings totaled $2.5 million.

In July 2024, the City Council revised its Fund Balance Policy by combining the Econonic Uncertainty and the Infrastructure Emergency reserves into one single reserve and reducing the combined balance from 20% to 10% of the operating expenditures. With the City’s 50% Operating Reserve, the total committed reserve now stands at 60%, down from 70% the previous year. This adjustment provides flexibility and availabilty of fund balances to address critical capital improvement needs while maintaining stability and preparedness for economic downturns and emergencies.

For FY 2024-2025, the City adopted a balanced budget. General Fund sources total $48,439,800, which include $45,975,300 in estimated revenues and $2,464,500 from Reserves to pay for one-time expenditures. The adopted expenditure budget totals $47,132,750, which includes $45,432,750 for operation and $1,700,000 for CIPs, leaving an estimated surplus of $1,307,050 for the fiscal year ending June 30, 2025.

Request for Information
This financial report is designed to provide a general overview of the financial position of the City of Paramount for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Finance Department, 16400 Colorado Avenue, Paramount, California 90723.

BASIC FINANCIAL STATEMENTS
15 This page intentionally left blank.
16 GOVERNMENT-WIDE FINANCIAL STATEMENTS
17 This page intentionally left blank.
18 Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments 69,664,117 $ 15,219,380 $ 84,883,497 $ Cash and investments with fiscal agent - 1,961 1,961
Accounts receivable 7,822,662 750,608 8,573,270
Interest receivable 455,560 61,254 516,814
Prepaid items and deposits 104,757 8,800 113,557
Inventories 234,511 - 234,511
Notes receivable, net 602,921 - 602,921
Land held for resale 1,184,042 - 1,184,042
Internal balance 850,000 (850,000) -
Capital assets
Nondepreciable assets 25,133,318 20,678,067 45,811,385
Depreciable assets, net of accumulated depreciation 51,024,930 12,655,284 63,680,214 Intangible capital assets, net of accumulated amortizaztion 300,185 29,399 329,584 Total capital assets 33,362,750 76,458,433 109,821,183
Total assets 48,787,303 157,144,453 205,931,756

DEFERRED OUTFLOWS OF RESOURCES
Pension related 8,820,958 1,288,596 10,109,554
Other postemployments benefits related 461,725 3,241,932 3,703,657 Total deferred outflows of resources 1,750,321 12,062,890 13,813,211

LIABILITIES
Accounts payable 5,916,911 5,442,786 11,359,697
Due to other government 232,239 - 232,239
Retention payable 69,086 348,319 417,405
Unearned revenue 2,382,441 - 2,382,441
Accrued interest payable 47,605 419,365 466,970
Deposits payable 78,568 279,388 357,956
Long-term liabilities:

Due within one year 672,722 1,553,247 2,225,969
Due in more than one year 22,099,285 11,950,759 34,050,044 Net pension liabilities 10,253,911 1,497,927 11,751,838 Net other postemployment benefits liabilities 7,529,677 1,072,397 8,602,074 Total liabilities 31,832,189 40,014,444 71,846,633

DEFERRED INFLOWS OF RESOURCES
Pension related 11,028,086 1,611,021 12,639,107
Other postemployments benefits related 276,317 1,940,120 2,216,437 Total deferred inflows of resources 1,887,338 12,968,206 14,855,544

NET POSITION
Net investment in capital assets 76,132,951 21,013,078 97,146,029 Restricted for:

Community development - 1,336,503 1,336,503
Public safety - 585,816 585,816
Community services - 564,819 564,819
Public works 13,248,912 - 13,248,912
Debt service - 10,501 10,501
Other - 257,809 257,809
Total restricted - 16,004,360 16,004,360
Unrestricted 24,087,382 (4,194,981) 19,892,401
Total net position $ 16,818,097 116,224,693 $ 133,042,790 $ City of Paramount
Statement of Net Position
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 19 Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Governmental Activities:

General government 8,911,185 $ 240,018 $ 888,470 $ - $ 1,128,488 $ Community development 3,509,880 2,587,812 734,248 - 3,322,060 Public safety 15,675,326 110,616 2,357,904 319,542 2,788,062 Community services 11,440,951 251,956 3,542,077 276,813 4,070,846 Public works 15,169,110 258,485 2,679,896 5,239,273 8,177,654 Interest and fiscal charges 368,796 - - - -
Total governmental activities 55,075,248 3,448,887 10,202,595 5,835,628 19,487,110 Business-type Activities:

Water utility 11,240,964 9,280,735 - - 9,280,735
Total business-type activities 11,240,964 9,280,735 - - 9,280,735 Total primary government $ 12,729,622 66,316,212 $ 10,202,595 $ 5,835,628 $ 28,767,845 $ (Continued)
Program Revenues
City of Paramount
Statement of Activities
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 20 Governmental Business-type
Functions/Programs Activities Activities Total
Governmental Activities:

General government (7,782,697) $ - $ (7,782,697) $
Community development (187,820) - (187,820)
Public safety (12,887,264) - (12,887,264)
Community services (7,370,105) - (7,370,105)
Public works (6,991,456) - (6,991,456)
Interest and fiscal charges (368,796) - (368,796)
Total governmental activities (35,588,138) - (35,588,138) Business-type Activities:

Water utility (1,960,229) - (1,960,229)
Total business-type activities - (1,960,229) (1,960,229) Total primary government (1,960,229) (35,588,138) (37,548,367) General Revenues:

Sales tax - 12,187,616 12,187,616
Transaction and use tax 8,551,198 - 8,551,198
Utility users tax 4,652,691 - 4,652,691
Franchise tax 2,471,532 - 2,471,532
Property tax - 3,095,924 3,095,924
Business license tax 1,046,281 - 1,046,281
Investment earnings 2,239,275 251,897 2,491,172
Unrestricted motor vehicle license fee 8,406,004 - 8,406,004 Other revenue 1,583,242 - 1,583,242
Total general revenues and transfers 44,233,763 251,897 44,485,660 Change in Net Position 8,645,625 (1,708,332) 6,937,293
Net Position
Beginning of year 107,579,068 18,526,429 126,105,497
End of year $ 16,818,097 116,224,693 $ 133,042,790 $
(Concluded)
Net (Expense) Revenue and Changes in Net Position
City of Paramount
Statement of Activities (Continued)
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 21 This page intentionally left blank.
22 FUND FINANCIAL STATEMENTS
23 This page intentionally left blank.
24 GOVERNMENTAL FUND FINANCIAL STATEMENTS
25 This page intentionally left blank.
26 Other Grants
Special Nonmajor Total
General Revenue Governmental Governmental
Fund Fund Funds Funds
ASSETS
Cash and investments 48,433,266 $ 2,270,592 $ 16,097,289 $ 66,801,147 $ Cash and investments with fiscal agent 1,961 - - 1,961
Accounts receivable 3,915,152 1,476,366 2,431,144 7,822,662 Interest receivable 316,437 20,617 100,315 437,369
Due from other funds 1,118,912 - - 1,118,912
Prepaid items 66,419 - 38,338 104,757
Notes receivable, net - - 602,921 602,921
Land held for resale 236,544 - 947,498 1,184,042
Advance to other funds 850,000 - - 850,000
Total assets $ 3,767,575 54,938,691 $ 20,217,505 $ 78,923,771 $

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 4,123,352 $ 396,502 $ 1,348,024 $ 5,867,878 $ Deposits payable 78,568 - - 78,568
Retentions payable - 17,156 51,930 69,086
Unearned revenues - 2,382,441 - 2,382,441
Due to other governmental agencies 232,239 - - 232,239
Due to other funds - - 1,118,912 1,118,912
Total liabilities 2,796,099 4,434,159 2,518,866 9,749,124 Deferred Inflows of Resources:

Unavailable revenue - 691,373 - 691,373
Total deferred inflows of resources: 691,373 - - 691,373 Fund Balances:

Nonspendable 302,963 - 38,338 341,301
Restricted 10,501 280,103 15,022,383 15,312,987
Committed 23,932,500 - 2,503,392 26,435,892
Assigned 23,827,602 - 140,926 23,968,528
Unassigned 2,430,966 - (6,400) 2,424,566
Total fund balances 280,103 50,504,532 17,698,639 68,483,274 Total liabilities, deferred inflows
of resources and fund balances $ 3,767,575 54,938,691 $ 20,217,505 $ 78,923,771 $ City of Paramount
Balance Sheet
Governmental Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 27 Fund Balances of Governmental Funds $ 68,483,274
Amounts reported for Governmental Activities in the Statement of Net Position are different because:

Capital assets of governmental activities are not current financial resources and, therefore, are not reported in the governmental funds, net of $1,485,049 reported in Internal Service Fund. 74,973,384 Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position:

Long-term liabilities (12,811,927)
Compensated absences (692,079)
Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the governmental funds. (47,605)
Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

Deferred outflows related to pensions 8,820,958
Net pension liability (10,253,911)
Deferred inflows related to pensions (11,028,086)
Net other postemployment benefits liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

Deferred outflows related to OPEB 3,241,932
Net OPEB liability (7,529,677)
Deferred inflows related to OPEB (1,940,120)
Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to be considered available. The availability criteria does not apply to the Government-Wide Financial Statements and, therefore, the revenue is recognized when eligibility requirements are met and earned. 691,373 Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in the Statement of Net Position. 4,317,177 Net Position of Governmental Activities $ 116,224,693
City of Paramount
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
See accompanying Notes to the Financial Statements.
28 Other Grants
Special Nonmajor Total
General Revenue Governmental Governmental
Fund Fund Funds Funds
REVENUES:

Taxes 32,005,239 $ - $ - $ 32,005,239 $
Licenses and permits 1,229,352 - - 1,229,352
Fines and penalties 1,158,077 - - 1,158,077
Interest and use of property 2,096,553 32,626 607,875 2,737,054 Intergovernmental revenues 8,406,004 2,074,665 12,759,280 23,239,949 Charges for services 787,335 - 470,484 1,257,819
Other revenues 1,555,136 - 9,865 1,565,001
Total revenues 2,107,291 47,237,696 13,847,504 63,192,491 EXPENDITURES:

Current:

General government 8,088,229 200,000 411,868 8,700,097
Community development 2,765,117 318,110 487,167 3,570,394 Public safety 14,629,683 456,239 334,935 15,420,857
Community services 3,530,015 848 3,469,495 7,000,358
Public works 8,122,378 155,685 1,802,437 10,080,500
Capital outlay:

Streets, sidewalks and signals 536,272 411,418 1,839,561 2,787,251 Parks 539,926 422,653 1,261,170 2,223,749
Other 4,089,293 - 547,439 4,636,732
Debt service:

Principal 1,306,587 - 35,024 1,341,611
Interest and fiscal charges 324,914 - 7,137 332,051
Total expenditures 1,964,953 43,932,414 10,196,233 56,093,600 Excess (deficiency) of revenues over
(under) expenditures 142,338 3,305,282 3,651,271 7,098,891 Net change in fund balances 142,338 3,305,282 3,651,271 7,098,891 FUND BALANCES:

Beginning of year, as previous reported 47,199,250 443,478 14,047,368 61,690,096 Change with record unavailable revenue - (305,713) - (305,713) Beginning of year, as restated (Note 14) 47,199,250 137,765 14,047,368 61,384,383 End of year $ 280,103 50,504,532 $ 17,698,639 $ 68,483,274 $ City of Paramount
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 29 Net Change in Fund Balances - Governmental Funds $ 7,098,891 Amounts reported for Governmental Activities in the Statement of Activities are different because:

Governmental funds report capital outlay as an expenditure in the full amount as current financial resources are used.

However, in the Statement of Activities the cost of these assets is allocated over the estimated useful life as depreciation expense.

Capital outlay, net of $358,566 reported in Internal Service Fund 7,466,899 Depreciation expense, net of $66,410 reported in Internal Service Fund (6,401,608) Net effect of disposal of capital assets (1,109,323)
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources of governmental funds but has no effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items.

Repayment of long-term debt 1,341,611
Amortized bond discount (10,884)
Interest expense (25,861)
In the Statement of Activities, compensated absences are measured by the amounts earned during the fiscal year. In governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially the amounts paid). This represents the change in compensated absences during the year. 129,242 Certain pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds, net of contribution made after the measurement period. (379,449) Certain other postemployment benefits expenses reported inthe Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds, net of contribution made during the measurement period. 528,489
Revenues reported as unavailable revenue in the governmental funds and recognized in the Statement of Activities. 385,660 Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue/(expense) of the internal service fund is reported as governmental activities. (378,042) Change in Net Position of Governmental Activities $ 8,645,625 City of Paramount
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental-Wide Statement of Activities For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 30 PROPRIETARY FUND FINANCIAL STATEMENTS
31 This page intentionally left blank.
32 Business-type Governmental
Activities ActivitiesWater Internal Service
Enterprise Fund Fund
ASSETS
Current Assets:

Cash and cash equivalents $ 2,862,970 15,219,380 $
Accounts receivable - 750,608
Interest receivable 18,191 61,254
Prepaid items - 8,800
Inventories - 234,511
Internal balance - (850,000)
Total current assets 2,881,161 15,424,553
Noncurrent Assets:

Capital assets:

Nondepreciable asset - 20,678,067
Depreciable assets, net of accumulated depreciation 12,655,284 1,485,049 Intangible capital assets, net of accumulated amortization 29,399 - Total capital assets 1,485,049 33,362,750
Total noncurrent assets 1,485,049 33,362,750
Total assets 4,366,210 48,787,303

DEFERRED OUTFLOWS OF RESOURCES
Pension related - 1,288,596
Other postemployment benefits related 461,725 -
Total deferred outflows of resources - 1,750,321

LIABILITIES
Current Liabilities:

Accounts payable 49,033 5,442,786
Retentions payable - 348,319
Interest payable - 419,365
Deposits payable - 279,388
Compensated absences, due within one year 25,645 -
Bonds and notes payable, due within one year 639,495 -
Lease payable, due within one year - 7,582
Total current liabilities 49,033 7,162,580
Noncurrent Liabilities:

Advance from other funds - 850,000
Compensated absences, due in more than one year 59,828 - Bonds and notes payable, due in more than one year 22,023,030 - Lease payable, due in more than one year 16,427 -
Net pension liability - 1,497,927
Net other postemployment benefits liability 1,072,397 - Total noncurrent liabilities - 24,669,609
Total liabilities 49,033 31,832,189

DEFERRED INFLOWS OF RESOURCES
Pension related - 1,611,021
Other postemployment benefits related 276,317 -
Total deferred inflows of resources - 1,887,338

NET POSITION
Net investment in capital assets 1,485,049 21,013,078
Unrestricted 2,832,128 (4,194,981)
Total Net Position $ 4,317,177 16,818,097 $
City of Paramount
Statement of Net Position
Proprietary Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements. 33 Business-type Governmental
Activities ActivitiesWater Internal Service
Enterprise Fund Fund

OPERATING REVENUES
Charges for services $ - 9,229,974 $
Other revenue - 50,761
Total operating revenue - 9,280,735

OPERATING EXPENSES
Water commission - 2,455
Water system administration - 1,364,860
Water production - 5,808,318
Water distribution - 1,736,713
Water customer service - 226,319
Water billing - 404,686
Other operating expenses 454,354 296,538
Depreciation 66,410 787,549
Total operating expenses 520,764 10,627,438
Operating income (520,764) (1,346,703)

NONOPERATING REVENUES (EXPENSES)
Interest revenue 142,722 251,897
Interest expense - (613,526)
Total nonoperating revenues (expenses) (361,629) 142,722 Change in net position (378,042) (1,708,332)

NET POSITION
Beginning of year 4,695,219 18,526,429
End of year $ 4,317,177 16,818,097 $
City of Paramount
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 34 Business-type Governmental
Activities ActivitiesWater Internal Service
Enterprise Fund Fund
Cash Flows From Operating Activities:

Receipts from customers and users 9,079,670 $ - $
Payments to suppliers (431,946) (2,437,921)
Payments to employees - (1,821,004)
Net cash provided by (used in) operating activities (431,946) 4,820,745 Cash Flows From Noncapital Financing Activities:

Principal paid on pension obligation bonds (181,467) -
Interest paid on pension obligation bonds (46,425) -
Net cash (used in) noncapital financing activities - (227,892) Cash Flows From Capital and Related Financing Activities:

Acquisition of capital assets (358,566) 4,370,917
Principal paid on capital debt - (364,565)
Interest paid on capital debt - (279,514)
Net cash provided by (used in) capital and related financing activities (358,566) 3,726,838 Cash Flows From Investing Activities
Interest received 143,579 206,465
Net cash provided by investing activities 143,579 206,465 Net change in cash and cash equivalents 8,526,156 (646,933) Cash and Cash Equivalents:

Beginning of year 3,509,903 6,693,224
End of year $ 2,862,970 15,219,380 $
Noncash Item:

Amortization of bond discount $ - 1,608 $
Reconciliation of Operating Income to Net Cash Provided by Operating Activities:

Operating income (loss) $ (520,764) (1,346,703) $
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation expense 66,410 787,549
Changes in assets and liabilities:
(Increase)/decrease in accounts receivable (202,170) -
(Increase)/decrease in prepaid items (232) -
(Increase)/decrease in inventory 66,173 -
(Increase)/decrease in deferred inflows of resources - pensions 541,122 - (Increase)/decrease in deferred inflows of resources - OPEB (174,089) - Increase/(decrease) in accounts payable 4,727,365 22,408 Increase/(decrease) in advance to toher funds 850,000 - Increase/(decrease) in deposits payable 1,105 -
Increase (decrease) in compensated absences 858 -
Increase (decrease) in net pension liability 593,980 -
Increase (decrease) in net OPEB liability (416,652) -
Increase (decrease) in deferred inflows of resources - pensions (512,773) - Increase (decrease) in deferred inflows of resources - OPEB (94,788) - Total adjustments 88,818 6,167,448
Net cash provided by operating activities $ (431,946) 4,820,745 $ City of Paramount
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements. 35 This page intentionally left blank.
36 FIDUCIARY FUND FINANCIAL STATEMENTS
37 This page intentionally left blank.
38 Successor
Agency
Private-Purpose Custodial
Trust Fund Fund
ASSETS
Current Assets
Cash and investments $ 1,596 257,252 $
Restricted cash and investments 7,528,740 -
Interest receivable - 103
Notes receivable - 75
Total current assets 1,596 7,786,170
Noncurrent assets
Building and building improvement 358,066 -
Infrastructure - 4,277,466
Less: accumulated depreciation (3,787,776) -
Total noncurrent assets - 847,756
Total assets 1,596 8,633,926

LIABILITIES
Current liabilities
Accounts payable 1,596 -
Interest payable - 85,548
Bonds payable, due within one year 5,502,331 -
Total current liabilities 1,596 5,587,879
Noncurrent liabilities:

Bonds payable, due in more than one year 10,943,196 -
Deferred pass through payments - 930,740
Total noncurrent liabilities - 11,873,936
Total liabilities 1,596 17,461,815

NET POSITION (DEFICIT)
Restricted for:

Successor Agency for the Paramount Redevelopment Agency (8,827,889) - Total fiduciary net position $ - (8,827,889) $
City of Paramount
Statement of Fiduciary Net Position
June 30, 2024
Fiduciary Funds
See accompanying Notes to the Basic Financial Statements. 39 Successor
Agency
Private-Purpose
Trust Fund Custodial Fund
ADDITIONS:

Redevelopment property taxes trust fund 5,943,492 $ - $ Interest and use of property - 149,823
Total additions - 6,093,315
DEDUCTIONS:

Administrative expenses - 269,389
Depreciation - 190,240
Interest and fiscal agent expenses 861,788 -
Total deductions - 1,321,417
Change in net position - 4,771,898
NET POSITION:

Beginning of year - (13,599,787)
End of year $ - (8,827,889) $
City of Paramount
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Financial Statements.
40 41

NOTES TO THE BASIC FINANCIAL STATEMENTS
42 This page intentionally left blank.

City of Paramount
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
43 Page
Note 1 – Summary of Significant Accounting Policies ..................................................................................... 45 A. Description of the Reporting Entity ................................................................................................ 45 B. Basis of Accounting and Measurement Focus ................................................................................ 46 C. Cash and Investments and Cash Equivalents .................................................................................. 49 D. Restricted Cash and Investments .................................................................................................... 49 E. Fair Value Measurement ................................................................................................................. 50 F. Prepaid Items and Deposits ............................................................................................................. 50 G. Inventories ...................................................................................................................................... 50 H. Land Held for Resale ...................................................................................................................... 50 I. Interfund Transactions .................................................................................................................... 50 J. Capital Assets ................................................................................................................................. 51 K. Deferred Outflows and Inflows of Resources ................................................................................. 51 L. Long-Term Liabilities ..................................................................................................................... 51 M. Arbitrage ......................................................................................................................................... 52 N. Compensated Absences .................................................................................................................. 52 O. Lease Liabilities .............................................................................................................................. 52 P. Pension ............................................................................................................................................ 52 Q. Other Postemployment Benefits ..................................................................................................... 53 R. Property Tax Revenues ................................................................................................................... 53 S. Net Position .................................................................................................................................... 53 T. Fund Balance .................................................................................................................................. 54 U. Use of Estimates ............................................................................................................................. 55 V. Implementation of New GASB Pronouncement ............................................................................. 55 Note 2 – Cash and Investments .......................................................................................................................... 55 A. Demand Deposits ............................................................................................................................ 56 B. Investments Authorized by the California Government Code and the City’s Investment .............. 56 C. Investments Authorized by Debt Agreements ................................................................................ 57 D. Fair Value Measurement ................................................................................................................. 57 E. Disclosures Relating to Interest Rate Risk...................................................................................... 57 F. Disclosures Relating to Credit Risk ................................................................................................ 58 G. Concentration of Credit Risk .......................................................................................................... 58 H. Custodial Credit Risk ...................................................................................................................... 59 I. Investment in State Investment Pool .............................................................................................. 59 J. California Asset Management Program .......................................................................................... 59 Note 3 – Interfund Transactions ........................................................................................................................ 59 A. Due From/To Other Funds.............................................................................................................. 59 B. Advance To/From Other Funds ...................................................................................................... 60 Note 4 – Notes Receivable ................................................................................................................................... 60 A. HOME Improvement Loan Program .............................................................................................. 60 B. HOME Senior Housing Loan ......................................................................................................... 61 C. Affordable Home Ownership Program – Clearwater Court ........................................................... 61 D. Home Improvement Loan Program ................................................................................................ 61 E. Commercial Rehabilitation Loan Program ..................................................................................... 61 City of Paramount
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024
44 Page
Note 5 – Capital Assets ......................................................................................................................................... 62 A. Governmental Activities .................................................................................................................. 62 B. Business-Type Activities ................................................................................................................. 63 C. Fiduciary Activities ......................................................................................................................... 64 Note 6 – Long-Term Liabilities ........................................................................................................................... 64 A. Governmental Activities .................................................................................................................. 64 B. Business-Type Activities ................................................................................................................. 66 C. Fiduciary Activities ......................................................................................................................... 69 Note 7 – Pension .................................................................................................................................................... 70 A. General Information about the Pension Plan ................................................................................... 70 B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions ........................................................................ 72 Note 8 – Other Postemployment Benefits (“OPEB”) ........................................................................................ 76 A. Information About the OPEB Plan .................................................................................................. 76 B. Net OPEB Liability .......................................................................................................................... 77 C. Changes in Net OPEB Liability ....................................................................................................... 78 D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB ............................................................................................................ 78 Note 9 – Deferred Compensation Plan ................................................................................................................ 80 Note 10 – Liability, Workers’ Compensation, and Purchased Insurance ....................................................... 80 A. Description of Self-Insurance Pool Pursuant to Joint Agreement ................................................... 80 B. Primary Self-Insurance Programs of the CJPIA .............................................................................. 80 C. Purchased Insurance ........................................................................................................................ 81 D. Adequacy of Protection ................................................................................................................... 82 Note 11 – Net Investment in Capital Assets ........................................................................................................ 82 Note 12 – Fund Balance ........................................................................................................................................ 83 Note 13 – Individual Fund Disclosure ................................................................................................................. 84 Note 14 – Correction of Error ............................................................................................................................. 84 Note 15 – Subsequent Events ............................................................................................................................... 84 Note 16 – Tax Abatement ..................................................................................................................................... 85 City of Paramount
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
45 Note 1 – Summary of Significant Accounting Policies
A. Description of the Financial Reporting Entity
The City of Paramount, California (the “City”) was incorporated January 30, 1957, under the general laws of the State of California and enjoys all the rights and privileges pertaining to "General Law" cities. The City is governed by a five-member council and operates under a Council-Manager form of government. The City is considered a "contract city" since it provides some of its municipal services through contracts with private entities or other governmental agencies.

The accounting policies of the City conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applicable to governments. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for governmental accounting and financial reporting principles.

The City serves as the primary government for several entities which are included in the accompanying basic financial statements as blended component units as the City is financially accountable for them and they are governed by a board composed of City Council members. The component units are included because of a significant financial relationship with the City. Additionally, the component units provide services entirely, or almost entirely, to the City or for the benefit of the City. Lastly, the City has responsibility for repayment of debt of the component units. A brief description of these related entities and the method of incorporating their financial information in the accompanying basic financial statements are summarized as follows:
 The Paramount Housing Authority (the “Housing Authority”) was established in December of 1984 pursuant to Section 34200 et seq., of the Health and Safety Code of the State of California. The Housing Authority is governed by a board composed of City Council members. The City’s management has the operational responsibility for the component unit. The primary purpose of the Housing Authority is to help provide affordable housing assistance to low and moderate income persons. Financial activity for this entity is included in a Special Revenue Fund of the accompanying basic financial statements. There is no separate financial report issued with respect to the Housing Authority.  The Paramount Parking Authority (the “Parking Authority”) was established in June of 1982 in accordance with the Parking Law of 1949 commencing with Section 32500 of the State of California Streets and Highway Code. The Parking Authority is governed by a board composed of City Council members.

Additionally, the Parking Authority provides services entirely to the City. The primary purpose of the Parking Authority is to fund and develop parking facilities in the Central Business District and throughout the City.

Financial activity for this entity is included in a Capital Project Fund of the accompanying basic financial statements. There is no separate financial report issued with respect to the Parking Authority.  The Paramount Industrial Development Authority (the “Development Authority”) was established in February of 1982 in accordance with the California Industrial Development Financing Act, Title 10, commencing with Section 91500 of the State of California Government Code. The Development Authority is governed by a board composed of City Council members. The City’s management has the operational responsibility for the component unit. The primary purpose of the Industrial Development Authority is to increase opportunities for useful employment and contribute to the economic growth of the community by providing an alternative method to finance industrial development. During the year ended June 30, 2023, there was no financial activity for the Development Authority.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
46 Note 1 – Summary of Significant Accounting Policies (Continued) A. Description of the Financial Reporting Entity (Continued)  The Paramount Public Financing Authority (the “Financing Authority”) was established in July of 1991 pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the State of California Government Code. The Financing Authority is governed by a board composed of City Council members. Additionally, the Financing Authority provides services entirely to the City. The primary purpose of the Financing Authority is to purchase bonds issued by the former Redevelopment Agency for financing and refinancing public capital improvements, working capital, liability and other insurance needs, or projects whenever there are significant public benefits, as determined by the Redevelopment Agency. On February 1, 2012, all redevelopment agencies in the State of California were dissolved and ceased to operate as legal entities.

B. Basis of Accounting and Measurement Focus
The term basis of accounting refers to the timing of when revenues and expenditures or expenses are recognized in the accounts and reported in the basic financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied.

Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements include separate columns for the governmental and business-type activities for the City.

These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred outflows of resources, liabilities and deferred inflows of resources, including capital assets and infrastructure as well as long-term debt, are included in the accompanying Statement of Net Position. The Statement of Activities presents the changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Additionally, the City allocates a portion of its indirect costs to individual functions. These indirect costs have been included as part of the program expenses reported for the various functional activities. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital contributions and grants.

Charges for services include revenues from customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Operating grants and contributions include revenues restricted to meeting the requirements of a particular operating function and may include state shared revenues and grants. Capital contributions and grants include revenues restricted to meeting the requirements of a particular capital function and may include grants and developer fees. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Certain eliminations have been made as to inter-fund activities, payables, and receivables. Balances between the funds included in governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Interfund services provided and used are eliminated in the process of consolidation.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
47 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Fund Financial Statements
Separate financial statements provide information about the government's funds, including its fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and proprietary funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.

Major individual governmental and proprietary funds are reported as separate columns in the fund financial statements.

Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and aggregated non-major funds. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net position and changes in net position presented in the Government-Wide Financial Statements.

All governmental funds are accounted for on a “current financial resources” measurement focus and the modified accrual basis of accounting. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Revenues are recognized in the accounting period in which they become susceptible to accrual, that is, when they become both measurable and available to finance expenditures of the current period. “Measurable” means that the amount of the transaction can be determined, and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. In general, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. On the other hand, for granting/reimbursable programs, the City considers revenues to be available if they are collected within 12 months of the end of the current fiscal year due to the extended nature of the reimbursement process.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, utility user taxes, franchise taxes, sales taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent they are measurable and available. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items, with the exception of grants, are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:

General Fund – The General Fund is the City’s primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund.

Other Grants Special Revenue Fund – The Other Grants Special Revenue Fund is used to account for various operational and capital improvement grants that are either small in size or available for a limited time. The revenues are comprised of federal, state, county and private grants that are restricted as to their purpose.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
48 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements
Proprietary funds follow the economic resources measurement of focus and the accrual basis of accounting.

Revenues are recognized when earned and expenses are recognized when incurred. Accordingly, all assets, deferred outflows of resources, all liabilities (whether current or non-current) and deferred inflows of resources associated with their activity are included on their statement of net position. Their reported fund equity is presented as total net position. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations, such as charges for water services. The principal operating revenues of the City’s internal service fund are charges to other funds for services rendered. Operating expenses for the internal service fund include the cost of materials and supplies, maintenance of capital assets and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The City reports the following major proprietary fund:

Water Enterprise Fund – The Water Enterprise Fund is the City’s only major proprietary fund. It is used to account for the activities of the City-owned water utility which provides service to approximately 7,700 accounts.

The City’s internal service fund is presented in the proprietary funds financial statements and is used to finance and account for goods and services provided by one City department to other City departments including the purchase and maintenance of vehicles and equipment. Because the principal users of the internal services are the City’s governmental activities, the financial statements of the internal service funds are included in the governmental activities column when presented in the government-wide financial statements. To the extent possible, the cost of these services is reported in the appropriate functional activity (general government, community development, public safety, etc.).

Internal Service Fund – The Equipment Replacement Internal Service Fund is included under this category to account for the timely replacement of the vehicles and major equipment used by general government departments on a regular basis.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting where the assets associated with the activity are controlled by the City and the assets are not derived 1) solely from the government’s own-source revenues or 2) from government-mandated nonexchange transactions or voluntary nonexchange transactions.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
49 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Fiduciary Fund Financial Statements (Continued)
The City reports the following two types of fiduciary funds:

Private-Purpose Trust Funds – The Private-Purpose Trust Funds are used to account for assets held by the City in a trustee capacity to pay enforceable obligations of the former Paramount Redevelopment Agency and to account for property held by the Successor Agency for the Paramount Redevelopment Agency until its disposal through sale or transfer. The Private-Purpose Trust Funds are not included in the government-wide statements.

Custodial Fund – The Custodial Fund is used to account for assets for the benefit of organizations or other governments that are not part of the City. In addition, the assets are not derived from the City’s provision of goods or services to those individuals, organizations, or other governments.. The Custodial Fund is custodial in nature and the fund is accounted for an economic resources focus. The majority of this fund relates to the delinquent trash assessments collected from the County on behalf of CalMet Services Incorporated, which was acquired by Athens Services on April 1, 2022. The Custodial Fund is not included in the government wide financial statements.

C. Cash and Investments and Cash Equivalents
Cash and investments consisted of cash in demand deposit accounts and investments in the U.S. Treasury Notes, the State Treasurer’s Local Agency Investment Fund and negotiable certificates of deposit. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition.

All cash and investments of proprietary funds are held in the City's investment pool as well. These cash pools have the general characteristics of a demand deposit account, therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for Statement of Cash Flows purposes.

D. Restricted Cash and Investments
Provisions of the City’s trust agreements related to the Successor Agency’s tax allocation bonds require that certain restricted investment accounts be established. These accounts are held by the fiscal agent and include funds for payment of principal and interest.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
50 Note 1 – Summary of Significant Accounting Policies (Continued) E. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:
 Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
 Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with49arket data at the measurement date.  Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

F. Prepaid Items and Deposits
Prepaids represent payments to vendors that reflect costs applicable to future accounting periods. Prepaid items are reported using the consumption method. Deposits are advance payments to vendors when orders are placed.

Prepaid items and deposits are reported in both the government-wide and fund financial statements.

G. Inventories
Inventory in the Water Enterprise Fund consists principally of maintenance parts and miscellaneous supplies. The inventory is valued at cost on a first-in, first-out basis and is accounted for using the consumption method.

H. Land Held for Resale
Land Held for Resale primarily represents assets acquired in the redevelopment process and recorded at the lower of historical cost or estimated net realizable value. The major portion represents land and improvements owned by the City to further the redevelopment plan. When these properties are resold, any gain or loss on sale will be recognized as transactions are completed.

I. Interfund Transactions
In the governmental fund financial statements, activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of inter-fund loans), and “advances to/from other funds” (i.e., long-term inter-fund loans). In the government-wide financial statements, these activities have been eliminated.

Transfers between governmental or between proprietary funds are eliminated as part of the reconciliation to the government-wide financial statements.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
51 Note 1 – Summary of Significant Accounting Policies (Continued) J. Capital Assets
Capital assets, which include land, land improvements, buildings and improvements, fine art, computer equipment, vehicles, other equipment, and right-to-use assets are reported in the Government-Wide Financial Statements and Proprietary Fund Financial Statements. In accordance with the provisions of GAAP, infrastructure assets related to governmental activities are reflected in the basic financial statements. Capital assets are defined by the City as fine art, computer equipment, vehicles, other equipment and intangible assets (i.e., software) with an initial individual cost of more than $5,000; and land, land improvements, buildings and improvements, and infrastructure with costs of more than $50,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated or annexed capital assets are recorded at estimated acquisition value at the date of donation or annexation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Depreciation is recorded in the Government-wide Financial Statements on a straight-line basis over the useful life of the assets as follows on the next page:

Assets Years
Land improvements 20 years
Buildings and improvements 10 - 50 years
Fine art 20 years
Computer equipment 5 years
Vehicles 6 - 7 years
Other equipment 3 - 20 years
Infrastruture 15 - 100 years
Right-to-use lease assets lesser of lease term or useful life K. Deferred Outflows and Inflows of Resources
The statement of net position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable.

Deferred Outflows of Resources represent a consumption of net assets that applies to future periods.

Deferred Inflows of Resources represent an acquisition of net assets that applies to future periods.

L. Long-Term Liabilities
In the government-wide and proprietary funds financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are recognized as an expense in the period incurred.

In the governmental fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
52 Note 1 – Summary of Significant Accounting Policies (Continued) M. Arbitrage
In accordance with Section 148 (f)(2) in the Internal Revenue Code of 1986, as amended, arbitrage on tax exempt debt offerings is reviewed every five years and the corresponding liability is accrued accordingly. There was no arbitrage liability as of June 30, 2024.

N. Compensated Absences
Compensated absences (unpaid vacation, sick leave and compensatory time) are recorded as expenditures in the fiscal year due and payable. For governmental activities, compensated absences are generally liquidated by the General Fund and for business-type activities, compensated absences are liquidated by the Water Enterprise fund.

The liability associated with these benefits is reported in the government-wide statements.

O. Lease Liabilities
The City recognizes lease liabilities with an initial, individual value of $5,000 or more with a lease term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease liability.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure any lease asset or liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

P. Pension
For purposes of measuring the aggregate net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.

The following timeframes are used for pension reporting:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
53 Note 1 – Summary of Significant Accounting Policies (Continued) P. Pension (Continued)
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

Q. Other Postemployment Benefits
For purposes of measuring the net other postemployment benefits (“OPEB)” liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, benefit payments are recognized when due and payable in accordance with benefit terms.

The following timeframes are used for OPEB reporting:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
Gains and losses related to changes in total OPEB liability are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

R. Property Tax Revenues
The County of Los Angeles levies property taxes on behalf of the City.

Property tax revenues are calculated annually in accordance with the Tax Equity Allocation (“TEA”) formula specified in Revenue and Taxation Code Section 97.35. Secured property taxes are levied against real property and are due and payable in two equal installments. The first installment is due on November 1 and becomes delinquent if not paid by December 10. The second installment is due on February 1 and becomes delinquent if not paid by April 10. Unsecured personal property taxes are due on July 1 each year. These taxes become delinquent if not paid by August 31. For the year ended June 30, 2024, property tax revenue to the City totaled $3,095,924.

S. Net Position
In the Government-Wide Financial Statements and proprietary fund financial statements, net position is classified as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of retention payable and debt that are attributable to the acquisition, construction, or improvement of those assets.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
54 Note 1 – Summary of Significant Accounting Policies (Continued) S. Net Position (Continued)
Restricted Net Position – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets with external restrictions imposed by creditors, grantors, contributions or laws or regulations of other governments, and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.

T. Fund Balance
In the Governmental Fund Financial Statements, fund balances are classified as follows:

Nonspendable – Nonspendable fund balances are items not in spendable form (such as prepaid items or inventory) or required to be maintained intact such as an endowment.

Restricted – Restricted fund balances are balances subject to externally enforceable legal restrictions or imposed by law through constitutional provisions or enabling legislation.

Committed – Committed fund balances are constrained to specific purposes by a formal action of the City Council, the highest level of decision-making authority for the City, such as a resolution. The constraint remains binding unless removed in the same formal manner by the City Council. Council action to commit fund balance must occur within the fiscal reporting period while the amount committed may be determined subsequently.

On July 9, 2024, the City passed a resolution and committed fund balances as follows:
 Operating reserve at 50% of adopted operating expenditures.  Economic uncertainty and Infrastructure and facility emergencies at 10% of adopted operating expenditures.
o Economic uncertainty is held to mitigate annual revenue shortfalls due to a fluctuating economy, unforeseen natural disaster, or actions by the state/federal government. This reserve shall be used to support core City services. Access to this reserve shall be triggered by a resolution declaring a state of emergency for the City or when there is a significant decrease of more than 10% in the General Fund revenues.
o Infrastructure and facility emergencies is set aside for a catastrophic emergency that requires the repair or rebuilding of the City’s streets, hard-scape, facilities, communication and technology systems, or other City-owned properties. This reserve may be utilized to provide resources to meet emergency expenditures in the case of flood, fire, earthquake, or other disasters.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
55 Note 1 – Summary of Significant Accounting Policies (Continued) T. Fund Balance (Continued)
Assigned – Assigned fund balances are resources constrained, by the City’s intent, to be used for specific purposes but are neither restricted nor committed. The City’s Fund Balance Policy delegates to the Finance Director the authority to assign unrestricted fund balance amounts where the City’s intent is for those amounts to be used for specific purposes. This delegation of authority is for the sole purpose of reporting these amounts in the annual financial statements.

Unassigned – Unassigned fund balance within the General Fund are the residual resources, either positive or negative, in excess of what can be properly classified in one of the other four fund balance categories. This also includes the negative residual resources in excess of what can be properly classified as nonspendable, restricted, or committed within all other governmental funds.

When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City’s policy is to first apply restricted fund balance. When expenditures are incurred for purposes for which committed, assigned or unassigned fund balances are available, the City’s policy is to first apply committed fund balance. It is at the discretion of the Council’s designee to then apply the remaining expenditures to assigned or unassigned fund balance.

U. Use of Estimates
The preparation of the basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

V. Implementation of New GASB Pronouncement
In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. See Note 14 as result of the implementation.

Note 2 – Cash and Investments
Cash and investments as of June 30, 2024 are classified in the accompanying financial statements as follows:

Statement of
Governmental
Activities
Business-type
Activities
Fiduciary Net
Position Total
Cash and investments 69,664,117 $ 15,219,380 $ 258,848 $ 85,142,345 $ Cash and investment with fiscal agent 1,961 - 7,528,740 7,530,701 Total cash and investments 69,666,078 $ 15,219,380 $ 7,787,588 $ 92,673,046 $ Government-Wide
Statement of Net Position
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
56 Note 2 – Cash and Investments
Cash and investments as of June 30, 2024 consisted of the following:

Petty cash 8,275 $
Deposits with financial institutions 1,525,792
Investments 91,138,979
Total cash and investments 92,673,046 $
A. Demand Deposits
The carrying amounts of the City’s demand deposits were $1,525,792 at June 30, 2024. Bank balances at that date were $3,543,671, the total amount of which was insured or collateralized with accounts held by the pledging financial institutions in the City’s name as discussed below.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name.

The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the collateralization requirements.

B. Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy, adopted on June 7, 2022. The table also identifies certain provisions of the City’s investment policy that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City.

Authorized Investment Type Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in One
Issuer
U.S. Treasury obligations 5 years None None
US government sponsored enterprise securities 5 years None None Local Agency Investment Fund ("LAIF") Upon Demand None $65 million Los Angeles County Investment Pool Upon Demand None None Joint Powers Authority Pool N/A None None
Negotiable certificates of deposit 5 years 30% None
Time deposit or placement service deposits 5 years 50% None City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
57 Note 2 – Cash and Investments (Continued)
C. Investments Authorized by Debt Agreements
Investment of debt proceeds held by the bond trustee is governed by provisions of the debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by the bond trustee.

Authorized Investment Type Maturity
Federal agency securities None
Certificates of deposit None
Bank repurchase agreement None
Money market fund None
Investment agreement None
Local Agency Investment Fund None
D. Fair Value Measurement
At June 30, 2024, investments are reported at fair value. The following table presents the fair value measurements of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2024.

Quoted Prices in
Active Markets for Significant Other
Identical Assets Observable Inputs
Investment Type Value (Level 1) (Level 2) Uncategorized Investments:

US Treasury notes 22,153,003 $ 22,153,003 $ - $ - $
US government sponsored enterprise securities 18,632,265 - 18,632,265 - Negotiable certificates of deposit 21,927,137 - 21,927,137 - LAIF - 297,966 - 297,966
CAMP - 11,767,307 - 11,767,307
Investments with fiscal agent:

Money market funds 16,361,301 - - 16,361,301
Total investments 91,138,979 $ 22,153,003 $ 40,559,402 $ 28,426,574 $ Fair Value Measurement
Level 2 values are based on institutional bond quotes and matrix pricing.

E. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. As of June 30, the weighted average maturity of the investments contained in the LAIF investment pool is approximately 10 months.

Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the maturity date of each investment:

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
58 Note 2 – Cash and Investments (Continued)
E. Disclosures Relating to Interest Rate Risk
Investment Type Amount Less than 1 1 to 2 2 to 3 3 to 4 4 to 5 Investments:

US Treasury notes 22,153,003 $ $ 6,182,375 $ 6,522,367 6,061,033 $ 3,387,228 $ - $ US government sponsored
enterprise securities 18,632,265 2,458,050 715,717 6,224,176 1,481,887 7,752,435 Negotiable certificates of deposit 21,927,137 247,867 2,451,332 4,692,589 7,300,920 7,234,429 LAIF 297,966 297,966 - - - -
CAMP 11,767,307 11,767,307 - - - -
Investments with Fiscal Agent:

Money market funds 16,361,301 - 16,361,301 - - -
Total investments 91,138,979 $ 37,314,866 $ 9,228,082 $ 17,439,132 $ 12,170,035 $ 14,986,864 $ Investment Maturities (in Years)
F. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City does not have a formal policy relating to a specific deposit or investment risk other than what has been defined by Government Code.

Minimum
Legal
Investment Type Rating Total AAA Unrated
Investments:

US Treasury notes None 22,153,003 $ $ - 22,153,003 $
US government sponsored enterprise securities None 18,632,265 - 18,632,265 Negotiable certificates of deposit None 21,927,137 21,927,137 - LAIF None 297,966 - 297,966
CAMP None 11,767,307 11,767,307 -
Investments with Fiscal Agent:

Money market funds None 16,361,301 - 16,361,301
Total investments 91,138,979 $ 68,913,876 $ 22,225,103 $ G. Concentration of Credit Risk
The City’s investment policy contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of the total City's investments for the year ended June 30, 2024 are as follows:

Issuer Reported Amount
Federal National Mortgage Association US government sponsored enterprise securities 3,932,765 $ Federal Home Loan Mortgage Corp US government sponsored enterprise securities 6,173,758 Investment Type
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
59 Note 2 – Cash and Investments (Continued)
H. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

I. Investment in State Investment Pool (“LAIF”)
The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2024, the City had $297,966 invested in LAIF.

The value of the City’s investment in the pool is reported in the accompanying financial statements at amounts based on the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which is recorded at amortized cost.

J. California Asset Management Program
California Asset Management Program (“CAMP”) is a California joint powers authority established in 1989 to provide California public agencies with professional investment services. The City invests in CAMP’s Cash Reserve Portfolio (the “CAMP Pool”) as permitted for all local agencies under California Government Code Section 53601(p). The CAMP Pool is fully liquid and met the criteria as an external investment pool under GASB 79 to be reported at amortized cost.

Note 3 – Interfund Transactions
A. Due From/To Other Funds
At June 30, 2024, the City had the following due from/to other funds:

Due To Other Funds
Nonmajor Governmental Funds 1,118,912 $
Due From Other Funds
General Fund
The amounts due to the General Fund from nonmajor governmental funds are short- term loans to provide cash flows.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
60 Note 3 – Interfund Transactions (Continued)
B. Advance To/From Other Funds
On December 12, 2023, the City approved the financing of 20-year term loan in the amount of $11,236,354 to purchase and install Advanced Metering Infrastructure (“AMI”) water meters. A full cost recovery of the increased water bills phasing in over a 12-month period means the Water Fund's net revenues from its operations will be insufficient to meet the debt service coverage ratio required for the loan agreements, and its fund balance is reduced to an unacceptable level. The City General Fund; therefore, lent the Water Fund $850,000 in year ended June 30, 2024. The repayment of interfund loan with 4% simple interest will occur after June 30, 2026.

At June 30, 2024, the City had the following advance to/from other funds:

Advance to
General Fund
Water Enterprise Fund
$ 850,000
Advance from
Note 4 – Notes Receivable
The following is a summary of notes receivable by fund at June 30, 2024.

Home Partnership Act Special Revenue Fund:

Home Improvement Loan Program 133,257 $
Senior Housing Note 948,500
Allowance for notes receivable (948,500)
Total Home Partnership Act Special Revenue Fund 133,257 Paramount Housing Authority Special Revenue Fund:

Affordable Home Ownership Program - Clearwater Court 431,602 Home Improvement Loan Program 38,062
Total Paramount Housing Authority Special Revenue Fund 469,664 Total nonmajor governmental funds 602,921 $
Successor Agency Private Purpose Trust Fund:

Commercial Rehabilitation Loan Program 75 $
The corresponding fund balance has been classified as restricted in the accompanying financial statements.

A. HOME Improvement Loan Program
The HOME Improvement Loan Program is designed to assist homeowners with their required contribution to the cost of a home improvement project. The program provides interest free loans up to $8,000 to cover up to 100% of the homeowner’s contribution. The loans are secured by a Deed of Trust and become due upon the sale, refinancing, or transfer of the property. The total amount outstanding is $133,257 at June 30, 2024.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
61 Note 4 – Notes Receivable (Continued)
B. HOME Senior Housing Loan
On June 27, 2012, the City entered into a 20-year-forgivable loan agreement with the Gold Key Development to develop a senior housing at 8421 Adams. The loan had an outstanding balance of $948,500 as of June 30, 2024.

The entire loan amount is recorded as a note receivable with an allowance to deferred note receivable as the City does not anticipate to receiving any cash payments from the borrower.

C. Affordable Home Ownership Program – Clearwater Court During Fiscal Year 1994, the former Paramount Redevelopment Agency implemented an Affordable Home Ownership Program designed to assist first-time homebuyers with the purchase of a home. The Agency assisted six homebuyers by providing secured second trust deeds totaling $510,816, which would significantly reduce their monthly mortgage payments. The notes plus accrued interest are due upon sale of the property. However, if the homeowner resides in the property for thirty years, the note plus accrued interest is forgiven. The total amount outstanding is $431,603 at June 30, 2024. On June 27, 2012.

D. Home Improvement Loan Program
During Fiscal Year 2008, the former Paramount Redevelopment Agency implemented a Home Improvement Loan Program designed to assist homeowners with their required contribution to the cost of a home improvement project. The program provides interest free loans up to $8,000 to cover up to 100% of the homeowner’s contribution. The loans are secured by a Deed of Trust and become due upon the sale, refinancing, or transfer of the property. The total amount outstanding is $38,062 at June 30, 2024. The former Redevelopment Agency transferred the Affordable Home Ownership Loans to the Paramount Housing Authority.

E. Commercial Rehabilitation Loan Program
During the year ended June 30, 2018, the former Paramount Redevelopment Agency implemented a Commercial Rehabilitation Loan Program designed to assist business property owners with their required contribution to the cost of a commercial rehabilitation project. The program provides interest free loans up to $50,000 to cover up to one half of the business property owner’s contribution. The loans have a term of 5 years, are secured by a Deed of Trust and become due upon the sale, refinancing or transfer of the property. The total amount outstanding is $75 at June 30, 2024.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
62 Note 5 – Capital Assets
A. Governmental Activities
The summary of changes in the capital assets for the governmental activities for the year ended June 30, 2024 is as follows:

Balance Balance
July 1, 2023 Additions Deletions Reclassification June 30, 2024 Capital assets not being depreciated:

Land 14,849,080 $ - $ - $ - $ 14,849,080 $
Construction in progress 9,205,734 3,633,849 (18,626) (2,536,719) 10,284,238 Total capital assets not being depreciated 24,054,814 3,633,849 (18,626) (2,536,719) 25,133,318 Capital assets being depreciated:

Land improvements 24,895,967 - - - 24,895,967
Buildings and improvements 20,689,560 1,140,734 (1,347,792) 525,137 21,007,639 Other equipment 3,113,565 1,308,455 (289,844) 182,104 4,314,280 Vehicles 2,958,555 182,942 (623,893) - 2,517,604
Computer equipment 325,264 - (36,736) - 288,528
Fine arts 1,394,693 - (220,172) - 1,174,521
Infrastructure 127,434,166 1,559,485 (91,942) 1,829,478 130,731,187 Total capital assets being depreciated 180,811,770 4,191,616 (2,610,379) 2,536,719 184,929,726 Less accumulated depreciation for:

Land improvements (19,564,209) (638,713) - - (20,202,922) Buildings and improvements (13,652,686) (559,342) 727,004 - (13,485,024) Other equipment (2,214,823) (254,530) 107,892 - (2,361,461) Vehicles (2,260,683) (285,322) 619,904 - (1,926,101)
Computer equipment (269,956) (20,125) 36,736 - (253,345) Fine arts (995,944) (32,368) 22,017 - (1,006,295)
Infrastructure (90,087,194) (4,588,583) 6,129 - (94,669,648) Total accumulated depreciation (129,045,495) (6,378,983) 1,519,682 - (133,904,796) Total capital assets being depreciated, net 51,766,275 (2,187,367) (1,090,697) 2,536,719 51,024,930 Intangigle assets, being amortized
Right-of-use leased vehicles 445,178 - - - 445,178
Accumulated amortization (55,958) (89,035) - - (144,993) Total intangible assets, being amortized, net 389,220 (89,035) - - 300,185 Total governmental activities $ 1,357,447 76,210,309 $ (1,109,323) $ - $ 76,458,433 $ Depreciation and amortization expense was charged to the governmental activities as follows:

General government 279,168 $
Community development 23,633
Public safety 28,115
Community services and recreation 1,094,583
Public works 4,976,109
Internal service fund 66,410
Total depreciation and amortization expense 6,468,018 $ City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
63 Note 5 – Capital Assets (Continued)
B. Business-Type Activities
The summary of changes in the capital assets for the business-type activities for the year ended June 30, 2024 is as follows:

Balance Balance
July 1, 2023 Additions Deletions June 30, 2024
Capital assets not being depreciated:

Land 2,894,476 $ - $ - $ 2,894,476 $
Construction in progress 10,948,110 6,835,481 - 17,783,591 Total capital assets not being depreciated 13,842,586 6,835,481 - 20,678,067 Capital assets being depreciated:

Buildings and wells 10,863,475 - - 10,863,475
Mains 21,614,830 - - 21,614,830
Distribution equipment 6,953,290 - - 6,953,290
Other equipment 1,285,429 - - 1,285,429
Tools 23,089 - - 23,089
Vehicles 610,101 - - 610,101
Computer equipment 268,242 10,023 - 278,265
Total capital assets being depreciated 41,618,456 10,023 - 41,628,479 Less accumulated depreciation for:

Buildings and wells (5,572,091) (304,089) - (5,876,180) Mains (14,723,177) (354,672) - (15,077,849)
Distribution equipment (5,959,068) (59,765) - (6,018,833) Other equipment (1,111,079) (23,896) - (1,134,975)
Tools (23,089) - - (23,089)
Vehicles (542,347) (35,204) - (577,551)
Computer equipment (262,813) (1,905) - (264,718)
Total accumulated depreciation (28,193,664) (779,531) - (28,973,195) Total capital assets being depreciated, net 13,424,792 (769,508) - 12,655,284 Intangigle assets, being amortized
Right-of-use leased vehicles 40,090 - - 40,090
Accumulated amortization (2,673) (8,018) - (10,691)
Total intangible assets, being amortized, net 37,417 (8,018) - 29,399 Total business-type activities $ 6,057,955 27,304,795 $ - $ 33,362,750 $ Depreciation and amortization expense was charged to business-type activities as follows:

Water $ 787,549
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
64 Note 5 – Capital Assets (Continued)
C. Fiduciary Activities
The summary of changes in the capital assets for the fiduciary activities for the year ended June 30, 2024 is as follows:

Balance Balance
July 1, 2023 Additions Deletions June 30, 2024
Capital assets being depreciated:

Buildings and improvements 358,066 $ - $ - $ 358,066 $
Infrastructure 4,277,466 - - 4,277,466
Total capital assets being depreciated 4,635,532 - - 4,635,532 Less accumulated depreciation for:

Buildings and improvements (354,979) (3,087) - (358,066) Infrastructure (3,242,557) (187,153) - (3,429,710)
Total accumulated depreciation (3,597,536) (190,240) - (3,787,776) Total capital assets being depreciated, net 1,037,996 $ (190,240) $ - $ 847,756 $ Depreciation expense in the amount of $190,240 was charged to the Fiduciary Activities – Successor Agency Private Purpose Trust Fund.

Note 6 – Long-Term Liabilities
A. Governmental Activities
The summary of changes in the long-term liabilities for the governmental activities for the year ended June 30, 2024 is as follows:

Balance Balance Due within Due in more
July 1, 2023 Additions Deletions June 30, 2024 One Year than One Year Compensated absences 821,321 $ 560,991 $ (690,233) $ 692,079 $ 224,955 $ 467,124 $ Direct Borrowing:

Financed purchases 44,255 - (32,091) 12,164 12,164 -
Public Offering:

Pension Obligation Bonds 13,936,444 - (1,228,533) 12,707,911 1,241,603 11,466,308 Bond discount (163,264) - 10,884 (152,380) (10,884) (141,496) Lease payable 325,219 - (80,987) 244,232 85,409 158,823 Total $ 560,991 14,963,975 $ (2,020,960) $ 13,504,006 $ 1,553,247 $ 11,950,759 $ Classification
Compensated Absences
The long-term portion of compensated absences payable has been accrued for the Governmental Activities on the Government-Wide Financial Statements. The General Fund has typically been used to liquidate the liability for the governmental activities.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
65 Note 6 – Long-Term Liabilities
A. Governmental Activities (Continued)
Financed Purchases
The City has entered into agreements for the purchase of certain vehicles purchased under financing arrangements. Such financing require annual payments of principal and interest, with an interest rate of 3.25% to

6.90%, and will be fully amortized by the year 2025.

Future annual debt service payments under the financing arrangements at June 30, 2024 are as follows:

Year ending
June 30, Principal Interest Total
2025 12,164 $ 815 $ 12,979 $
Pension Obligation Bonds
On November 4, 2021, the City issued the 2021 Pension Obligation Bonds to pay a portion of the City’s unamortized, unfunded accrued actuarial liability to the California Public Employees’ Retirement System (“CalPERS”) and to pay the costs of issuing the bonds. Interest is paid semiannually on June 1 and December 1 of each year, commencing June 1, 2022, until 2030. Interest rates range between 0.565% to 2.519%. Principal payments range from $1,370,000 to $1,565,000 beginning on June 1, 2023. The liability was allocated between the governmental activities and business-type activities.

Future debt service requirements for the governmental activities and business-type activities on the bonds at June 30, 2024, are as follows:

Year ending
June 30, Principal Interest Total Principal Interest Total 2025 1,241,603 $ 302,304 $ 1,543,907 $ 183,397 $ 44,653 $ 228,050 $ 2026 1,259,029 285,518 1,544,547 185,971 42,174 228,145 2027 1,276,454 264,718 1,541,172 188,546 39,102 227,648 2028 1,302,594 240,147 1,542,741 192,406 35,472 227,878 2029 1,328,733 212,467 1,541,200 196,268 31,384 227,652 2030-2034 4,552,542 642,885 5,195,427 672,458 94,961 767,419 2035-2038 1,746,956 115,850 1,862,806 258,043 17,112 275,155 Total 12,707,911 $ 2,063,889 $ 14,771,800 $ 1,877,089 $ 304,858 $ 2,181,947 $ Year ending
June 30, Principal Interest Total
2025 1,425,000 $ 346,957 $ 1,771,957 $
2026 1,445,000 327,692 1,772,692
2027 1,465,000 303,820 1,768,820
2028 1,495,000 275,619 1,770,619
2029 1,525,001 243,851 1,768,852
2030-2034 5,225,000 737,846 5,962,846
2035-2038 2,004,999 132,962 2,137,961
Total 14,585,000 $ 2,368,747 $ 16,953,747 $
Total
Governmental Activities Business-Activities
Water Enterprise Fund
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
66 Note 6 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lease Payable
The City has entered into various leases for vehicle uses. The terms of the agreements are 60 months with discount rate of 5.67% based on the average of the interest rates in the financing agreements. Principal and interest to maturity are as follows:

Year ending
June 30, Principal Interest Total
2025 85,409 $ 13,335 $ 98,744 $
2026 90,072 8,672 98,744
2027 68,751 3,752 72,503
Total 244,232 $ 25,759 $ 269,991 $
B. Business-Type Activities
The summary of changes in the long-term liabilities for the business-type activities for the year ended June 30, 2024 is as follows:

Balance Balance Due within Due in more
July 1, 2023 Additions Deletions June 30, 2024 One Year than One Year Compensated absences 84,615 $ 74,920 $ (74,062) $ 85,473 $ 25,645 $ 59,828 $ Direct Borrowing:

Note payable - IBank - 9,909,040 (337,450) 9,571,590 348,154 9,223,436 Note payable - AMI - 11,236,354 - 11,236,354 107,944 11,128,410 Financed purchases 19,926 - (19,926) - - -
Public Offering:

Pension Obligation Bonds 2,058,556 - (181,467) 1,877,089 183,397 1,693,692 Bond discount (24,116) - 1,608 (22,508) - (22,508)
Lease payable 31,198 - (7,189) 24,009 7,582 16,427
Total $ 11,311,274 12,079,219 $ (618,486) $ 22,772,007 $ 672,722 $ 22,099,285 $ Classification
Compensated Absences
The long-term portion of compensated absences payable has been accrued for the Business-type Activities on the Government-Wide Financial Statements and Proprietary Fund Financial Statements.

Note Payable – California Infrastructure and Economic Development Bank (“IBank”) In May 2010, an agreement was made between the California Infrastructure and Economic Development Bank (“IBank”) and the City for a loan of $5,500,000 under the Bergeson-Peace Infrastructure and Economic Development Bank Act. The purpose of the loan is to construct a water well and other water treatment facilities.

The loan is to be repaid by August 2039, over 30 years at 3.31% annual interest. The City has pledged net system revenues of the Water Fund to the repayment of the note. During the year ended June 30, 2024, interest of $123,816 and principal of $171,269 were paid leaving an outstanding balance of $3,655,036.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
67 Note 6 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Note Payable – California Infrastructure and Economic Development Bank (“IBank”) (Continued) For the 2010 loan, the City may at any time request IBank to prepay all or a portion of the principal component of the purchase price. The City must provide IBank with its prepayment request in writing and at least sixty (60) days prior to the requested prepayment or reduction date.

In May 2018, another agreement was made between the IBank and the City for a loan of $6,700,000 under the Infrastructure State Revolving Fund Program. The purpose of the loan is to construct a water well and other water treatment facilities. The loan is to be repaid by August 2047, over 30 years at 3.03% annual interest. The City has pledged net system revenues of the Water Fund to the repayment of the note. During the year ended June 30, 2024, interest of $181,789 and principal of $166,180 were paid leaving an outstanding balance of $5,916,554.

For the 2018 loan, the City is not permitted to prepay all or a portion of the outstanding principal component of the purchase price during the prohibited prepayment period which commences with the effective date and ends with the date that is ten (10) years after the effective date. After the prohibited prepayment period, the City must provide IBank with its prepayment request in writing and at least ninety (90) days prior to the requested prepayment or reduction date.

Future debt service requirements on long-term debt at June 30, 2024, are as follows:

Year ending
June 30, Principal Interest Total
2025 348,154 $ 294,731 $ 642,885 $
2026 359,198 283,511 642,709
2027 370,594 271,934 642,528
2028 382,352 259,990 642,342
2029 394,483 247,665 642,148
2030-2034 2,161,903 975,613 3,137,516
2035-2039 2,262,278 629,823 2,892,101
2040-2044 1,990,767 413,065 2,403,832
2045-2048 1,301,861 80,364 1,382,225
Total 9,571,590 $ 3,456,696 $ 13,028,286 $
Note Payable – Banc of America Public Capital Corp
On December 19, 2023, an agreement was made between the Banc of America Public Capital Corp and the City for a loan of $11,236,354 to provide funds to finance the Advanced Metering Infrastructure (AMI) meter portion of the improvements to be constructed by Willdan Energy Solutions. The loan is to be repaid by December 2043, over 20 years at 4.85% annual interest. The City will make the first payment in December 2024.The outstanding balance is $11,236,354 as of June 30, 2024
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
68 Note 6 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Note Payable – Banc of America Public Capital Corp (Continued) Future debt service requirements on long-term debt at June 30, 2024, are as follows:

Year ending
June 30, Principal Interest Total
2025 107,944 $ 789,041 $ 896,985 $
2026 365,126 540,730 905,856
2027 383,309 522,988 906,297
2028 402,398 504,363 906,761
2029 422,437 484,811 907,248
2030-2034 2,449,496 2,035,426 4,484,922
2035-2039 3,123,269 1,361,653 4,484,922
2040-2044 3,982,375 502,548 4,484,923
Total 11,236,354 $ 6,741,560 $ 17,977,914 $
Pension Obligation Bonds
See Note 6A for disclosure.

Lease Payable
The City has entered into a lease for vehicle uses. The terms of the agreement is 60 months with discount rate of

5.67% based on the average of the interest rates in the financing agreements. Principal and interest to maturity are as follows:

Year ending
June 30, Principal Interest Total
2025 7,582 $ 1,310 $ 8,892 $
2026 7,995 897 8,892
2027 8,432 460 8,892
Total 24,009 $ 2,667 $ 26,676 $
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
69 Note 6 – Long-Term Liabilities (Continued)
C. Fiduciary Activities
The summary of changes in the long-term liabilities for the fiduciary activities for the year ended June 30, 2024 is as follows:

Balance Balance Due within Due in more
July 1, 2023 Additions Deletions June 30, 2024 One Year than One Year Public Offering:
1998 Tax Allocation Refunding Bonds 11,939,765 $ 647,322 $ - $ 12,587,087 $ 4,435,945 $ 8,151,142 $ 2010 Tax Allocation Bonds 5,200,000 (1,315,000) 3,885,000 1,075,000 2,810,000 Unamoritzed discount (35,175) - 8,615 (26,560) (8,614) (17,946) 2015 Tax Allocation Refunding Bonds 3,485,000 (3,485,000) - - - Unamortized premium 28,820 - (28,820) - - -
Direct Borrowing:

Deferred pass through 930,740 - - 930,740 - 930,740
Total $ 647,322 21,549,150 $ (4,820,205) $ 17,376,267 $ 5,502,331 $ 11,873,936 $ Classification
1998 Tax Allocation Refunding Bonds
In February 1998, the Agency issued $3,122,050 of Tax Allocation Refunding Bonds to refund the 1993B Compound Interest Tax Allocation Bonds and provide additional funds in furtherance of the Redevelopment Plan.

The 1998 Bonds have a maturity value of $14,050,000 with all interest and principal payable at maturity. The bonds mature August 1, 2026 and are compounded annually at 5.35%. Accordingly, as of June 30, 2024, interest of $647,322 was added to the outstanding debt.

Future debt service requirement at June 30, 2024, is as follows:

Year ending Accreted
June 30, Principal Interest Total
2027 3,122,050 $ 9,465,037 $ 12,587,087 $
1998 Tax Allocation Refunding Bonds
At maturity, the bonds will have a value as follows:

Accreted
Principal Interest Total
$ 10,927,950 3,122,050 $ 14,050,000 $
Due Date
August 1, 2026
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
70 Note 6 – Long-Term Liabilities (Continued)
C. Fiduciary Activities (Continued)
2010 Tax Allocation Bonds
In June 2010, the Paramount Redevelopment Agency issued $12,290,000 of 2010 Tax Allocation Bonds. The 2010 Tax Allocation Bonds consist of $8,430,000 of Series A Bonds with coupon rates ranging from 5.0% to

5.5% and $3,860,000 of Series B Taxable Bonds with coupon rates of 5.193% and 6.235%. The aggregate combined True Interest Cost (TIC) of the 2010 Bonds is 5.573%. Net Interest Cost (NIC) of the 2010 bonds is

5.498%. Interest is paid semi-annually on February 1 and August 1 of each year.

Future debt service requirements at June 30, 2024, are as follows:

Year ending
June 30, Principal Interest Total
2025 1,075,000 $ 178,475 $ 1,253,475 $
2026 1,125,000 120,725 1,245,725
2027 1,185,000 45,597 1,230,597
2028 500,000 27,500 527,500
Total 3,885,000 $ 372,297 $ 4,257,297 $
Deferred Pass-Through-Los Angeles County
On June 4, 1991 the Paramount Redevelopment Agency entered into a tax sharing agreement with the County of Los Angeles. As part of that agreement, the County deferred receipt of its share of the annual tax increment revenue generated by Project Area #2 until July 1, 2031. As of June 30, 2024, the balance due is $930,740.

Note 7 – Pension
A. General Information about the Pension Plan
Plan Description
The City contributes to the California Public Employees’ Retirement System (“CalPERS”), a cost-sharing multiple-employer defined benefit pension plan for both miscellaneous and safety employees. The safety plan was terminated during measurement period ended June 30, 2022. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California.

Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the CalPERS annual financial report may be obtained from https://www.calpers.ca.gov/page/forms-publications.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
71 Note 7 – Pension (Continued)
A. General Information about the Pension Plan (Continued) Employees Covered by Benefit Terms
At June 30, 2022 valuation date, the following employees were covered by the benefit terms:

Miscellaneous Misc PEPRA
Active employees 55 35
Transferred and terminated employees 52 11
Separated 27 6
Retired Employees and Beneficiaries 163 -
Total 297 52
Benefits Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation.

The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay.

Following are the benefit provisions for each plan:

Miscellaneous Rate
Plan*
PEPRA
Miscellaneous Rate
Plan
Hire date Prior to July 1, 2002 January 1, 2013 and
after
Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age minimum 50 yrs minimum 52 yrs
Cost-Sharing Rate Plans
* Safety Plan was terminated during the measurement period and plan assets were merged with the City's Miscellaneous Plan as of June 27, 2022.

Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The Public agency cost-sharing plans covered by either the Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
72 Note 7 – Pension (Continued)
A. General Information about the Pension Plan (Continued) Contributions (Continued)
The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2023 (the measurement date), the contribution rates were as follows.

Miscellaneous Rate
Plan
PEPRA
Miscellaneous Rate
Plan
Required employee contribution rates 8.000% 7.750%
Required employer contribution rates 15.210% 7.600%
Cost-sharing Rate Plans
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2022 valuation was rolled forward to determine June 30, 2023 total pension liability based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table Derived using CalPERS’ Membership Data for all Funds.

Post Retirement Benefit Increase
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

Entry Age Normal
The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter Change of Assumption
There was no change in assumption in 2023. Effective with the June 30, 2022, valuation date (2023 measurement date), the accounting discount rate was 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the longterm projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
73 Note 7 – Pension (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Long-term Expected Rate of Return (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. The expected real rates of return by asset class are as follows:

Assumed Asset
Asset Class1 Allocation Real Return 1, 2
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.0%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.

Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Liquidating Net Pension Liability
The pension liabilities are liquidated principally by all the funds.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the plans as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:

Discount Rate Current Discount Discount Rate
- 1% (5.90%) Rate (6.90%) + 1% (7.90%)
Miscellaneous $ 11,751,838 27,099,856 $ (880,899) $
Plan's Net Pension Liability/(Asset)
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
74 Note 7 – Pension (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Pension Plan Fiduciary Net Position
Detail information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report and can be obtained from CalPERS’ website under Forms and Publications.

Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the measurement period:

The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2022). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.
(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2023). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2022 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2022-23). (3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on the rate plan’s share of the actuarial accrued liability. FNP is allocated based on the rate plan’s share of fair value assets.
(4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the measurement date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the measurement date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the measurement date is the difference between the TPL and FNP calculated in (5).

Deferred outflows of resources, deferred inflows of resources, and pension expense are allocated based on the City’s share of net pension liability at the end of measurement date.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
75 Note 7 – Pension (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) The City’s proportionate share of the net pension liability was as follows:

Miscellaneous
June 30, 2022 0.10024%
June 30, 2023 0.09420%
Change - Increase (Decrease) -0.00604%
Deferred outflows of resources, deferred inflows of resources, and pension expense is allocate based on the City’s share of net pension liability during measurement period.

The following table shows the City’s proportionate share of the risk pool collective net pension liability over the measure period:

Plan Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
Miscellaneous
Balance at: 6/30/22 (Valuation date) 108,019,543 $ 96,441,423 $ 11,578,120 $ Balance at: 6/30/23 (Measurement date) 113,482,446 101,730,608 11,751,838 Net Changes during 2022-23 5,462,903 5,289,185 173,718
Increase (Decrease)
For the year ended June 30, 2024, the City recognized aggregated pension expense in the amount of $1,446,435.

At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Pension contribution after measurement date 1,029,759 $ - $ Change of assumptions 709,512 -
Difference between expected and actual experience 600,346 (93,129) Difference between projected and actual earning on
pension plan investments 1,902,729 -
Adjustment due to differences in proportions - (10,520,428) Difference between City contributions and
proportionate share of contributions 5,867,208 (2,025,550) Total 10,109,554 $ (12,639,107) $
Miscellaneous
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
76 Note 7 – Pension (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for risk pool for the 2022-2023 measurement period is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (the total number of participants: active, inactive, and retired).

The $1,029,759 reported as deferred outflows of resources related to pensions resulting from the City’s contributions made subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the year ending June 30, 2025.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Measurement
Period Ending
Deferred
Outflows/(Inflows)
of Resources
June 30, Miscellaneous
2025 (2,461,444) $
2026 (1,903,005)
2027 750,540
2028 54,597
2029 -
Thereafter -
$ (3,559,312)
Note 8 – Other Postemployment Benefits (“OPEB”)
A. Information About the OPEB Plan
Plan Description and Benefits Provided
The City provides an agent multiple-employer defined benefit healthcare plan and pays certain post-retirement health insurance premium payments on behalf of qualifying retired employees and their eligible dependents or survivors. The CalPERS Board of Administration has sole and exclusive control and power over the administration and investment of the plan (sometimes also referred to as CERBT). The City pays 100% of the cost of retiree health benefits for those employees who retired prior to January 1, 2011 and 85% for those who retired subsequent to December 31, 2010. CalPERS is responsible for administering the benefits for the retirees. Copies of the CalPERS' annual financial report may be obtained from the CalPERS website.

Employees Covered by Benefit Term at Measurement Date of June 30, 2023 Active employees 92
Inactive currently receiving benefit 61
Inactive entitled to but not yet receiving benefit payments 11 Total 164
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
77 Note 8 – Other Postemployment Benefits (“OPEB”) (Continued) A. Information About the OPEB Plan (Continued)
Contributions
The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2024, the City’s cash contributions to the plan including the implied subsidy were $121,600. The general fund, in the governmental activities and the water enterprise funds are the primary funds used to liquidate the OPEB liabilities.

B. Net OPEB Liability
Actuarial Assumptions
The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Actuarial Assumptions:

Contribution policy
Discount rate
Expected long-term rate of return on investments
Global inflation 2.50% per annually
Mortality/retirement/disability/termination rate
Mortality improvement
Salary increases
Healthcare cost trend rates
Healthcare participation for future retirees
Medicare (Kaiser) - 6.25% for 2025, decreasing to ultimate rate of

3.45% in 2076 and later years
50% if currently waived
100% if currently covered
CalPERS 2000-2019 Experience Study
Mortality projected fully generational with Scale MP-2021 Phase-in of full pre-funding: full ADC in 2027/28, 100% paid in 2020/21, 2021/22, 2022/23, and 2023/24
Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust
Merit - Tables from CalPERS 2000-2019 Experience Study
Non-Medicare - 8.50% for 2025, decreasing to ultimate rate of 3.45% in 2076 and later years
Medicare (Non-Kaiser) - 7.50% for 2025, decreasing to ultimate rate of 3.45% in 2076 and later years
Aggregate - 2.75% per annum

6.25% at June 30, 2023

6.25% at June 30, 2022
Change in Assumptions
In 2023, there were no changes in assumptions.

Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries.

Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
78 Note 8 – Other Postemployment Benefits (“OPEB”) (Continued) B. Net OPEB Liability (Continued)
Expected Long-Term Rates of Return
Asset Class Component
Target Allocation
CERBT-Strategy 1
Expected Real
Rate of Return*
Global Equity 49.00% 4.54%
Fixed Income 23.00% 3.84%
TIPS 5.00% 7.28%
Commodities 3.00% 0.27%
REITs 20.00% 0.50%
100.0%
* The long-term expected real rates of return are presented as geometric means.

Liquidating OPEB Liability
The OPEB liabilities are liquidated principally by the General Fund and Water Enterprise Fund.

C. Changes in Net OPEB Liability
The following presents the changes in the net OPEB liability:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balances as of June 30, 2022 14,963,802 $ 7,874,628 $ 7,089,174 $ Changes during the measurement period:

Service cost 384,972 - 384,972
Interest 934,803 - 934,803
Benefit changes - - -
Actual vs. expected experience 1,155,338 - 1,155,338
Assumption changes 1,163,849 - 1,163,849
Employer contribution - 1,616,000 (1,616,000)
Net investment income 512,350 (512,350)
Benefit payments (783,860) (783,860) -
Administrative expenses - (2,288) 2,288
Net changes during measurement period 2022-23 2,855,102 1,342,202 1,512,900 Balances as of June 30, 2023 (Measurement Date) 17,818,904 $ 9,216,830 $ 8,602,074 $ Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (5.25%) or one percentage point higher (7.25%) follows:

Discount Rate Current Discount Discount Rate
- 1% (5.25%) Rate (6.25%) + 1% (7.25%)
$ 8,602,074 10,818,935 $ 6,756,951 $
Net OPEB Liability
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
79 Note 8 – Other Postemployment Benefits (“OPEB”) (Continued) C. Changes in Net OPEB Liability (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates follows:

Healthcare
1% Decrease Cost Trend Rate 1% Increase
$ 8,602,074 6,578,057 $ 11,064,073 $
Net OPEB Liability
D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the measurement period ended June 30, 2023, the City recognized OPEB expense of $587,085. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred outflows Deferred inflows
of resources of resources
OPEB contribution after measurement date 1,216,000 $ - $ Changes of assumptions 995,175 (484,843)
Difference between expected and actual experience 987,898 (1,731,594) Difference between projected and actual earning on
OPEB plan investments 504,584 -
Total 3,703,657 $ (2,216,437) $
The $1,216,000 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the net OPEB liability during the year ending June 30, 2025.

Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized as expense as follows:

Measurement
Period Ending
June 30,
Deferred
Inflows of
Resources
2025 (247,005) $
2026 (277,988)
2027 207,533
2028 (49,937)
2029 336,114
Thereafter 302,503
$ 271,220
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
80 Note 9 – Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is administered by the Employer Retirement LLC. It is available to all full-time employees and all part-time employees and permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or an unforeseeable emergency.

Beginning in fiscal year 1998, existing assets in the Plan have been deemed to be in a qualified custodial account. The Custodian holds the Plan's assets for the exclusive benefit of participants and beneficiaries. The Plan's assets are not the legal property of the City and are not subject to the claims of the City's general creditors nor can they be used by the City for any purpose other than the payment of benefits to employees participating in the Plan or their designated beneficiaries. Therefore, deferred compensation funds are not shown on the City's basic financial statements. The City did not make any contributions to the plan for the current fiscal year.

Note 10 – Liability, Workers’ Compensation, and Purchased Insurance The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets, errors and omissions, injuries to employees and natural disasters.

A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement (“CJPIA”) The City of is a member of the California Joint Powers Insurance Authority (the “CJPIA”). The CJPIA is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the CJPIA is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The CJPIA began covering claims of its members in 1978.

Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine member Executive Committee.

B. Primary Self-Insurance Programs of the CJPIA
Each member pays an annual contribution at the beginning of the coverage period. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
81 Note 10 – Liability, Workers’ Compensation, and Purchased Insurance (Continued) B. Primary Self-Insurance Programs of the CJPIA (Continued) The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.

Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the CJPIA’s website: https://cjpia.org/coverage/risk-sharing-pools/.

Primary Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2023-24 the CJPIA’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million.

Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

C. Purchased Insurance
Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program which is available through the CJPIA. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City.

Coverage is on a claims-made basis. There is a $250,000 deductible. The CJPIA has an aggregate limit of $20 million.

Property Insurance
The City of Paramount participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Paramount property is currently insured according to a schedule of covered property submitted by the City of Paramount to the Authority. City of Paramount property currently has all-risk property insurance protection in the amount of $66,193,136. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Earthquake and Flood Insurance
The City of Paramount purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Paramount property currently has earthquake protection in the amount of $2,450,678. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
82 Note 10 – Liability, Workers’ Compensation, and Purchased Insurance (Continued) C. Purchased Insurance (Continued)
Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the CJPIA.

Special Event Tenant User Liability Insurance
The City further protects against liability damages by requiring tenant users of certain property to purchase lowcost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays for the insurance. The insurance is facilitated by the CJPIA.

D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2023-24.

Note 11 – Net Investment in Capital Assets
The net investment in capital assets for the governmental activities, and business-type activities are calculated as follows:

Business-type
Activities
Governmental Water Enterprise
Activities Fund
Total capital assets, net 76,458,433 $ 33,362,750 $
Retention payable (69,086) (348,319)
Capital related debt (256,396) (20,831,953)
Unspent notes payable - 8,830,600
Net investment in capital assets 76,132,951 $ 21,013,078 $ City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
83 Note 12 – Fund Balance
The City’s governmental fund balances at June 30, 2024 are presented below:

Other Grant Nonmajor
General Special Revenue Governmental
Fund Fund Funds Total
Nonspendable:

Prepaid items 66,419 $ - $ 38,338 $ 104,757 $
Land held for resale 236,544 - - 236,544
Total nonspendable 302,963 - 38,338 341,301
Restricted:

Environmental concerns - 95,211 1,694,049 1,789,260
Public safety - 169,386 - 169,386
Housing programs - - 454,341 454,341
Housing programs - notes receivables - - 467,293 467,293 Housing programs - land held for resale - - 412,498 412,498 After school program - 15,506 125,335 140,841
Road maintenance - - 2,718,378 2,718,378
Waste reduction - - 420,519 420,519
Air quality management - - 60,014 60,014
Disability access and education - - 68,080 68,080
Public transit - - 8,084,187 8,084,187
Sewer maintenance - - 257,509 257,509
Public access - - 257,809 257,809
Parking Authority - land held for resale - - 2,371 2,371 Debt service 10,501 - - 10,501
Total restricted 10,501 280,103 15,022,383 15,312,987
Committed:

Operating 20,058,500 - - 20,058,500
Economic uncertainty and Infrastructure 3,874,000 - 535,000 4,409,000 Community cultural services - - 714,373 714,373
Storm drains - - 625,900 625,900
General plan - - 628,119 628,119
Total committed 23,932,500 - 2,503,392 26,435,892
Assigned for:

Compensated absences 692,000 - - 692,000
Coronavirus related 5,129,834 - - 5,129,834
Capital projects 13,762,448 - - 13,762,448
Self insurance 800,000 - - 800,000
Special projects 527,620 - 140,926 668,546
Retiree benefit obligation 2,915,700 - - 2,915,700
Total assigned 23,827,602 - 140,926 23,968,528
Unassigned - 2,430,966 (6,400) 2,424,566
Total fund balances $ 280,103 50,504,532 $ 17,698,639 $ 68,483,274 $ City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
84 Note 13 – Individual Fund Disclosure
The following functions report expenditures in excess of appropriations for the year ended June 30, 2024.

Expenditure
in Excess of
Appropriation Expenditure Appropriation
General Fund
Public works 7,625,761 $ 8,122,378 $ (496,617) $
Debt service:

Interest 288,481 324,914 (36,433)
AB2766 Subvention Funds Special Revenue Fund
Public works 18,000 40,036 (22,036)
Debt service:

Interest 6,951 7,137 (186)
Proposition A Transit Tax Special Revenue Fund
General government 65,850 69,039 (3,189)
Public safety 115,700 117,289 (1,589)
Community services 683,250 708,979 (25,729)
Public works 53,200 154,433 (101,233)
Public Art Fees Special Revenue Fund
General government 7,500 8,708 (1,208)
Note 14 – Correction of Error
The City did not record the unavailable revenue to Other Grants Special Revenue Fund in the amount of $305,713 as of June 30, 2023 for grant revenue not received within one year of year end. Beginning fund balance was restated as follows:

Other Grants
Special Revenue
Fund
Beginning fund balance, as previously reported 443,478 $ Unavailable revenue (305,713)
Beginning fund balance, as restated 137,765 $
Note 15 – Subsequent Events
Refunding of Paramount Redevelopment Agency 2010 Tax Allocation Bonds, Series A On October 8, 2024, the City Council approved a resolution of the governing board of the successor agency for the Paramount Redevelopment Agency and authorizing a loan in the principal amount not to exceed $2,282,500 to refund the outstanding Paramount Redevelopment Agency redevelopment project area No. 1 2010 Tax Allocation Bonds, Series A. The issuance of the refunding debt is pending approval by the California Department of Finance.

City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
85 Note 15 – Subsequent Events (Continued)
Measure LR
On November 5, 2024, Paramount voters approved Measure LR at the special municipal election to apply a business license tax based on gross receipts to be used for general municipal purposes. The approved measure is expected to increase the business license tax revenue. The new business license tax structure takes effect January 1, 2025, annually until ended by voters.

Note 16 – Tax Abatement
The City entered into a sales tax abatement agreement with a local business pursuant to a settlement agreement dated January 23, 2018. Under the terms of the agreement, 35% of the sales tax remittance generated by this business is abated annually for the period from July 1, 2022, through June 30, 2027. Beginning July 1, 2027, the abatement rate will be reduced to 30%.

During the fiscal year ended June 30, 2024, the total gross sales tax abated under this agreement amounted to $427,847.
86 This page intentionally left blank.

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
87 This page intentionally left blank.
88 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes 29,712,150 $ 30,134,150 $ 32,005,239 $ 1,871,089 $ Licenses and permits 1,362,400 1,162,400 1,229,352 66,952 Fines and penalties 1,042,700 1,042,700 1,158,077 115,377 Interest and use of property 1,036,200 1,036,200 2,096,553 1,060,353 Intergovernmental revenues 8,488,350 8,394,800 8,406,004 11,204 Charges for services 1,125,500 905,500 787,335 (118,165) Other revenues 1,342,250 1,342,250 1,555,136 212,886
Total revenues 44,018,000 44,109,550 47,237,696 3,219,696 EXPENDITURES:

Current:

General government 8,874,200 8,587,118 8,088,229 498,889 Community development 4,022,600 4,006,646 2,765,117 1,241,529 Public safety 15,367,950 15,547,439 14,629,683 917,756
Community services 3,730,000 3,678,476 3,530,015 148,461 Public works 7,936,850 7,625,761 8,122,378 (496,617)
Capital outlay
Streets, sidewalks and signals 1,564,600 2,436,745 536,272 1,900,473 Parks 2,976,750 2,848,261 539,926 2,308,335
Other 10,463,500 13,163,571 4,089,293 9,074,278
Debt service:

Principal 410,700 1,636,939 1,306,587 330,352
Interest - 288,481 324,914 (36,433)
Total expenditures 59,819,437 55,347,150 43,932,414 15,887,023 Net change in fund balances $ (15,801,437) (11,237,600) $ 3,305,282 19,106,719 $ FUND BALANCE:

Beginning of year 47,199,250
End of year $ 50,504,532
For the Year Ended June 30, 2024
Budgeted Amounts
City of Paramount
Required Supplementary Information (Unaudited)
General Funds
Budgetary Comparison Schedule
89 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 10,850 $ 10,850 $ 32,626 $ 21,776 $ Intergovernmental revenues 16,399,600 21,431,224 2,074,665 (19,356,559) Total revenues 21,442,074 16,410,450 2,107,291 (19,334,783) EXPENDITURES:

Current:

General government - 200,000 200,000 -
Community development 436,000 656,000 318,110 337,890
Public safety 649,700 709,700 456,239 253,461
Community service - - 848 (848)
Public works 208,850 208,850 155,685 53,165
Capital outlay:

Streets, sidewalks and signals 12,445,150 15,200,002 411,418 14,788,584 Parks 2,593,000 4,499,772 422,653 4,077,119
Total expenditures 21,474,324 16,332,700 1,964,953 19,509,371 Net change in fund balance $ (32,250) 77,750 $ 142,338 174,588 $ FUND BALANCES:

Beginning of year, as restated (Note 14) 137,765
End of year $ 280,103
City of Paramount
Required Supplementary Information (Unaudited)
Other Grants Special Revenue Funds
For the Year Ended June 30, 2024
Budgeted Amounts
Budgetary Comparison Schedule (Continued)
90 Budgetary Information

1. An annual budget for governmental and proprietary funds is adopted by the City Council to provide guidance for the general operation of the City. Such budgets include estimated revenues and authorized appropriations for all governmental and proprietary funds, except for the Capital Project Fund. The annual budget is generally adopted in summary form by City Council resolution in June of each year. The resolution sets a combined appropriation of all funds for the operation of the component units.

2. The level of budgetary control over appropriations is at the activity level (i.e., general government, community development, public safety, community service, and public works). The City Manager may transfer appropriations within an activity, and he may transfer appropriations within a fund without City Council approval, provided the total appropriation at the activity level and the fund level does not change. Budgetary changes, including supplemental appropriations or appropriation reductions, are made by the City Council during the fiscal year or at a midyear budget review. Expenditures may not exceed budgeted appropriations at the activity level.

3. The budget is formally integrated into the accounting system and employed as a management control device during the year for all funds.

4. Budgets for the governmental fund types are adopted on a basis consistent with generally accepted accounting principles ("GAAP"). The modified accrual basis of accounting is employed in the preparation of the budget. Unencumbered budget appropriations lapse at the end of the fiscal year.

5. Under the California Constitution Article XIIIB (commonly referred to as the Gann Appropriations Limitation), the City is restricted as to the amount of its annual appropriations. If proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or refunded to the taxpayers through revised tax rates or revised fee schedules. For the fiscal year ending June 30, 2024, appropriations subject to this limit were below the maximum allowed.

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

City of Paramount
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2024
91 Measurement Date June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Plan's proportion of the net pension liability/(asset) 0.09420% 0.10024% 0.23064% 0.22039% 0.23350% Plan's proportionate share of the net pension 11,751,838 $ 11,578,120 $ 12,473,659 $ 23,984,002 $ 23,926,634 $ liability/(asset)
Plan's covered payroll 7,810,475 $ 7,135,558 $ 6,860,335 $ 6,727,793 $ 6,657,324 $ Plan's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll 150.46% 162.26% 181.82% 356.49% 359.40% Plan's fiduciary net position as a percentage of
the plan's total pension liability 89.64% 89.28% 88.30% 77.71% 77.73% Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") City of Paramount
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of the Net Pension Liability For the Year Ended June 30, 2024
92 Measurement Date June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Plan's proportion of the net pension liability/(asset) 0.22167% 0.23087% 0.23126% 0.23388% 0.19059% Plan's proportionate share of the net pension 21,361,148 $ 22,896,454 $ 20,010,860 $ 16,053,473 $ 11,859,567 $ liability/(asset)
Plan's covered payroll 6,387,917 $ 6,190,935 $ 6,206,549 $ 6,029,967 $ 6,334,225 $ Plan's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll 334.40% 369.84% 322.42% 266.23% 187.23% Plan's fiduciary net position as a percentage of
the plan's total pension liability 75.26% 73.31% 74.06% 78.40% 79.82% Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Required Supplementary Information (Unaudited)
City of Paramount
Schedule of Proportionate Share of the Net Pension Liability (Continued) For the Year Ended June 30, 2024
93 Fiscal year 2023-24 2022-23 2021-22 2020-21 2019-20
Actuarially Determined Contribution 1,029,759 $ 1,541,647 $ 17,772,296 $ 2,644,674 $ 2,386,867 $ Contribution in Relation to the
Actuarially Determined Contribution (1,029,759) (1,541,647) (17,772,296) (3,241,174) (2,886,867) Contribution Deficiency (Excess) - $ - $ - $ (596,500) $ (500,000) $ Covered Payroll1 $ 7,810,475 8,029,168 $ 7,135,558 $ 6,860,335 $ 6,727,793 $ Contributions as a Percentage
of Covered Payroll 12.825% 19.738% 249.067% 47.245% 42.910% Change in Benefit Terms: There were no changes in benefit terms.

N/A - Not applicable
City of Paramount
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Changes of Assumptions: There was no assumption change in 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In 2021, 2020 and 2019, there were no changes in assumptions. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. 1 Includes one year’s payroll growth using 2.80 percent payroll assumption from fiscal year 2022 to 2023.

Notes to Schedule:
94 Fiscal year 2018-19 2017-18 2016-17 2015-16 2014-15
Actuarially Determined Contribution 2,094,439 $ 1,764,757 $ 1,552,328 $ 1,402,641 $ 1,225,048 $ Contribution in Relation to the
Actuarially Determined Contribution (2,094,439) (2,644,757) (1,552,328) (1,402,641) (1,225,048) Contribution Deficiency (Excess) - $ (880,000) $ - $ - $ - $ Covered Payroll1 $ 6,387,917 6,657,324 $ 6,190,935 $ 6,206,549 $ 6,029,967 $ Contributions as a Percentage
of Covered Payroll 31.461% 41.402% 25.074% 22.599% 20.316% City of Paramount
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") 95 Measurement period June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Total OPEB liability
Service cost 384,972 $ 374,669 $ 449,094 $ 443,371 $ 463,518 $ Interest 934,803 901,174 1,099,400 1,057,467 1,116,530
Benefit changes - - - - -
Differences between expected and actual experience 1,155,338 - (2,087,489) - (1,821,464) Changes of assumption 1,163,849 - (586,548) (287,656) (97,284) Benefit payments (783,860) (712,314) (625,003) (570,330) (462,020) Net change in total OPEB liability 563,529 2,855,102 (1,750,546) 642,852 (800,720) Total OPEB liability, beginning 14,400,273 14,963,802 16,150,819 15,507,967 16,308,687 Total OPEB liability, ending (a) $ 14,963,802 17,818,904 $ 14,400,273 $ 16,150,819 $ 15,507,967 $ OPEB fiduciary net position
Contributions - employer 1,616,000 $ 1,517,000 $ 1,472,000 $ 1,219,000 $ 1,102,000 $ Net investment income 512,350 (1,099,472) 1,579,124 178,197 251,956 Benefit payments, including refunds
of employee contributions (783,860) (712,314) (625,003) (570,330) (462,020) Administrative expenses (2,288) (2,070) (2,177) (2,411) (866) Net change in plan fiduciary net position (296,856) 1,342,202 2,423,944 824,456 891,070 Plan fiduciary net position, beginning 8,171,484 7,874,628 5,747,540 4,923,084 4,032,014 Plan fiduciary net position, ending (b) $ 7,874,628 9,216,830 $ 8,171,484 $ 5,747,540 $ 4,923,084 $ Plan net OPEB liability - ending (a) - (b) $ 7,089,174 8,602,074 $ 6,228,789 $ 10,403,279 $ 10,584,883 $ Plan's fiduciary net position as a percentage
of the total OPEB liability 51.73% 52.62% 56.75% 35.59% 31.75% Covered-employee payroll $ 7,082,429 8,159,786 $ 6,548,566 $ 6,727,793 $ 7,069,939 $ Total OPEB liability as a percentage of coveredemployee payroll 105.42% 100.10% 95.12% 154.63% 149.72% 1 Historical information is presented after GASB 75 was implemented for measurement period 2016-2017. Additional years of information will be displayed as it becomes available.

City of Paramount
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2024
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB")
96 Measurement period June 30, 2018 June 30, 20171
Total OPEB liability
Service cost $ 437,000 450,017 $
Interest 978,000 1,045,580
Benefit changes - -
Differences between expected and actual experience - -
Changes of assumption - -
Benefit payments (432,000) (453,910)
Net change in total OPEB liability 983,000 1,041,687
Total OPEB liability, beginning 14,284,000 15,267,000
Total OPEB liability, ending (a) $ 15,267,000 16,308,687 $ OPEB fiduciary net position
Contributions - employer $ 903,000 1,013,000 $
Net investment income 262,000 258,903
Benefit payments, including refunds
of employee contributions (432,000) (453,910)
Administrative expenses (2,000) (5,979)
Net change in plan fiduciary net position 731,000 812,014 Plan fiduciary net position, beginning 2,489,000 3,220,000 Plan fiduciary net position, ending (b) $ 3,220,000 4,032,014 $ Plan net OPEB liability - ending (a) - (b) $ 12,047,000 12,276,673 $ Plan's fiduciary net position as a percentage
of the total OPEB liability 24.72% 21.09%
Covered-employee payroll $ 6,473,000 6,679,479 $
Total OPEB liability as a percentage of coveredemployee payroll 183.80% 186.11% City of Paramount
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios (Continued) For the Year Ended June 30, 2024
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB")
97 Fiscal year end 2023-24 2022-23 2021-22 2020-21 2019-20 Actuarially determined contribution2 $ 1,183,000 1,216,000 $ 1,517,000 $ 1,472,000 $ 1,613,000 $ Contribution in relation to the actuarially
determined contribution (1,216,000) (1,616,000) (1,517,000) (1,472,000) (1,219,000) Contribution deficiency/(excess) - $ (433,000) $ - $ - $ 394,000 $ Covered-employee payroll 8,780,110 $ 7,678,609 $ 7,082,429 $ 6,548,566 $ 6,727,793 $ Contributions as a percentage of
covered-employee payroll 13.85% 21.05% 21.42% 22.48% 18.12% Actuarial Methods and Assumptions for 2023/24 Actuarially Determined Contribution:

Valuation Date
Actuarial Cost Method Entry age normal, level % of pay
Amortization Method Level % of pay
Amortization Period 9.7-year average period for 2023/24 Asset Valuation Method Investment gains and losses spread over 5-year rolling period Discount Rate
General Inflation
Medical Trend
Mortality CalPERS 2000-2019 Experience Study
Mortality Improvement Mortality projected fully generational with Scale MP-2021 For the Year Ended June 30, 2024
City of Paramount
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2076 1 Historical information is presented after GASB 75 was implemented for measurement period 2016-17. Additional years of information will be displayed as it becomes available.

Other Postemployment Benefits ("OPEB")
Last Ten Fiscal Years
June 30, 2021

6.25%

2.50%
98 Fiscal year end 2018-19 2017-18 2016-171
Actuarially determined contribution2 $ 1,462,000 1,565,000 $ 1,389,000 $ Contribution in relation to the actuarially
determined contribution (1,102,000) (1,013,000) (903,000) Contribution deficiency/(excess) 463,000 $ 449,000 $ 486,000 $ Covered-employee payroll 7,069,939 $ 6,679,479 $ 6,473,000 $ Contributions as a percentage of
covered-employee payroll 15.59% 15.17% 13.95%
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2024
City of Paramount
Other Postemployment Benefits ("OPEB")
Last Ten Fiscal Years
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SUPPLEMENTARY INFORMATION
101
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102

NONMAJOR GOVERNMENTAL FUNDS
103
Special Revenue Funds:

Community Development Block Grant (CDBG) Fund - To account for restricted revenues received under for Housing and Community Development Act through the Department of Housing and Urban Development.

Home Partnership Act Fund - To account for restricted revenues received under the HOME investments Partnership Act through the Department of Housing and Urban Development.

Home - American Rescue Plan - To account for restricted revenues received under the HOME investments Partnership Act through the Department of Housing and Urban Development under the American Rescue Plan Program.

Paramount Housing Authority - To account for restricted assets received from the former Paramount Redevelopment Agency as its affordable housing successor.

After School Education and Safety Fund - To account for restricted revenues received to be used in the establishment of local after school education enrichment programs.

State Gasoline Tax Fund - To account for restricted revenues received from the State of California to be used for street maintenance, right of way acquisition and street construction.

Traffic Safety Fund - To account for restricted revenues received from traffic fines to be used for traffic safety purposes.

Waste Reduction Fees Fund - To account for restricted revenue received through charges collected on refuse bills for the implementation of programs to reduce the flow of refuse going to landfills.

AB2766 Subvention Funds - To account for restricted revenue received through the South Coast Air Quality Management District to be used to reduce air pollution from motor vehicles and for costs associated with the implementation of the California Clean Air Act of 1988.

Disability Access and Education Fund - To account for restricted revenues received by requiring a $1 tax for any application for a local business license or equivalent license or permit. This revenue will be used to fund the expanded Certified Access Specialist Program require by this bill.

SB1 Road Maintenance & Rehabilitation Account (RMRA) - To account for restricted revenues received through the State of California to be used for road and street maintenance and rehabilitation.

Proposition A Transit Tax Fund - To account for restricted revenues received through the Los Angeles County Metropolitan Transportation Authority to be used to provide transportation services.

Proposition C Transit Tax Fund - To account for restricted revenues received through the Los Angeles County Metropolitan Transportation Authority to be used for road and street maintenance and rehabilitations.

Measure R Transit Tax Fund - To account for funds received through the Los Angeles County Metropolitan Transportation Authority restricted for transportation services and street construction, improvement, and maintenance.

Measure M Transit Tax Fund - To account for funds received through the Los Angeles County Metropolitan Transportation Authority restricted for transportation services and street construction, improvement, and maintenance.

Measure W Safe Clean Water Fund - To account for funds received through the Los Angeles County special parcel tax restricted for modernizing the water system to better protect the public health and the environment, and maximize a cleaner, locally controlled water supply.

Measure A Parks Fund - To account for funds received through the Los Angeles County special parcel tax for keeping neighborhood park and beaches safe and clean.

City of Paramount
Nonmajor Governmental Funds
104
Special Revenue Funds (Continued):

Sewer Reconstruction Fund - To account for restricted revenues from charges collected on construction permits to be used for the reconstruction of sewers.

Public Art Fees Fund - To account for fees committed for the acquisition and maintenance of public art.

Public Access Fees Fund - To account for fees restricted for the construction of public access facilities.

Storm Drain Fees Fund - To account for fees committed to be used for a storm drain master plan.

General Plan Fees Fund - To account for fees committed to be used for a general update master plan.

Service Assessments Fund - To account for committed revenues received from services provided to private properties through service assessments.

Community Benefit Agreement Fund - To account for the contribution from community partners for children and growth programs, civic programs, and other programs administered by the City. The use of the fund is assigned by the City.

Capital Projects Fund:

Paramount Parking Authority Fund - To account for acquisition and development of parking facilities in the City.

City of Paramount
Nonmajor Governmental Funds (Continued)
105
Community HOME Paramount After School
Development HOME American Housing Education
Block Grant Partnership Act Rescue Plan Authority & Safety ASSETS
Cash and investments - $ - $ - $ 308,582 $ 32,742 $
Accounts receivable 33,867 32,814 107,019 202 138,041
Interest receivable - - - - 208
Prepaid items - - - - -
Notes receivable, net 2,371 133,257 - 467,293 -
Land held for resale - - - 412,498 -
Total assets $ 166,071 36,238 $ 107,019 $ 1,188,575 $ 170,991 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCE
Liabilities:

Accounts payable 10,309 11,532 29,830 - 45,656
Retention payable - - - - -
Due to other funds 23,558 8,982 77,189 - -
Total liabilities 20,514 33,867 107,019 - 45,656
Fund Balances:

Nonspendable - - - - -
Restricted 2,371 145,557 - 1,188,575 125,335
Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total fund balances 145,557 2,371 - 1,188,575 125,335
Total liabilities and fund balances $ 166,071 36,238 $ 107,019 $ 1,188,575 $ 170,991 $ (Continued)
City of Paramount
Nonmajor Governmental Funds
Special Revenue Funds
Combining Balance Sheet
June 30, 2024
106
Disability
State Gas Traffic Waste AB2766 Access and
Tax Safety Reduction Fees Subvention Education
ASSETS
Cash and investments 1,035,543 $ - $ 411,641 $ 48,949 $ 66,799 $ Accounts receivable 124,850 4,170 6,262 17,554 857
Interest receivable 6,580 - 2,616 311 424
Prepaid items - - - - -
Notes receivable, net - - - - -
Land held for resale - - - - -
Total assets $ 4,170 1,166,973 $ 420,519 $ 66,814 $ 68,080 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCE
Liabilities:

Accounts payable 150,954 - - 6,800 -
Retention payable - - - - -
Due to other funds - 4,170 - - -
Total liabilities 4,170 150,954 - 6,800 -
Fund Balances:

Nonspendable - - - - -
Restricted 1,016,019 - 420,519 60,014 68,080
Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total fund balances - 1,016,019 420,519 60,014 68,080
Total liabilities and fund balances $ 4,170 1,166,973 $ 420,519 $ 66,814 $ 68,080 $ (Continued)
City of Paramount
Nonmajor Governmental Funds
Special Revenue Funds
Combining Balance Sheet (Continued)
June 30, 2024
107
SB1 Road
Maint & Rehab Proposition A Proposition C Measure R Measure M (RMRA) Transit Tax Transit Tax Transit Tax Transit Tax
ASSETS
Cash and investments 1,478,861 $ 2,431,014 $ 1,847,274 $ 2,204,377 $ 2,072,749 $ Accounts receivable 240,536 - 92,134 68,195 77,315
Interest receivable 9,062 15,446 11,737 14,341 13,170
Prepaid items - - - - -
Notes receivable, net - - - - -
Land held for resale - - - - -
Total assets $ 2,446,460 1,728,459 $ 1,951,145 $ 2,286,913 $ 2,163,234 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCE
Liabilities:

Accounts payable 26,100 $ 262,900 $ 327,157 $ - $ 121,578 $ Retention payable - - 46,558 - 5,372
Due to other funds - - - - -
Total liabilities 262,900 26,100 373,715 - 126,950
Fund Balances:

Nonspendable - - - - -
Restricted 1,702,359 2,183,560 1,577,430 2,286,913 2,036,284 Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total fund balances 2,183,560 1,702,359 1,577,430 2,286,913 2,036,284 Total liabilities and fund balances $ 2,446,460 1,728,459 $ 1,951,145 $ 2,286,913 $ 2,163,234 $ (Continued)
City of Paramount
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
108
Measure W Sewer Public
Safe Clean Measure A Reconstruction Public Access
Water Parks Fees Art Fees Fees
ASSETS
Cash and investments 1,698,703 $ - $ 255,883 $ 709,863 $ 247,568 $ Accounts receivable - 1,179,511 - - 8,668
Interest receivable 10,793 - 1,626 4,510 1,573
Prepaid items - 6,400 - 31,938 -
Notes receivable, net - - - - -
Land held for resale - - - - -
Total assets $ 1,185,911 1,709,496 $ 257,509 $ 746,311 $ 257,809 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCE
Liabilities:

Accounts payable 15,447 265,141 - - -
Retention payable - - - - -
Due to other funds - 920,770 - - -
Total liabilities 1,185,911 15,447 - - -
Fund Balances:

Nonspendable - 6,400 - 31,938 -
Restricted 1,694,049 - 257,509 - 257,809
Committed - - - 714,373 -
Assigned - - - - -
Unassigned - (6,400) - - -
Total fund balances - 1,694,049 257,509 746,311 257,809 Total liabilities and fund balances $ 1,185,911 1,709,496 $ 257,509 $ 746,311 $ 257,809 $ (Continued)
Special Revenue Funds
City of Paramount
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
109
Total
General Community Special
Storm Drain Plan Service Benefit Revenue
Fees Fees Assessments Agreement Fund
ASSETS
Cash and investments 621,948 $ 624,153 $ 640 $ - $ 16,097,289 $ Accounts receivable - - 679 298,470 2,431,144
Interest receivable 3,952 3,966 - - 100,315
Prepaid items - - - - 38,338
Notes receivable, net - - - - 602,921
Land held for resale - - - - 412,498
Total assets $ 628,119 625,900 $ 1,319 $ 298,470 $ 19,682,505 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCE
Liabilities:

Accounts payable - - $ 1,319 $ 73,301 $ 1,348,024 $
Retention payable - - - - 51,930
Due to other funds - - - 84,243 1,118,912
Total liabilities - - 1,319 157,544 2,518,866
Fund Balances:

Nonspendable - - - - 38,338
Restricted - - - - 15,022,383
Committed 625,900 628,119 - - 1,968,392
Assigned - - - 140,926 140,926
Unassigned - - - - (6,400)
Total fund balances 628,119 625,900 - 140,926 17,163,639 Total liabilities and fund balances $ 628,119 625,900 $ 1,319 $ 298,470 $ 19,682,505 $ (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
City of Paramount
Combining Balance Sheet (Continued)
110
Capital
Projects Fund Total
Paramount Nonmajor
Parking Governmental
Authority Funds
ASSETS
Cash and investments $ 16,097,289 - $
Accounts receivable 2,431,144 -
Interest receivable 100,315 -
Prepaid items 38,338 -
Notes receivable, net 602,921 -
Land held for resale 947,498 535,000
Total assets $ 20,217,505 535,000 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCE
Liabilities:

Accounts payable $ 1,348,024 - $
Retention payable 51,930 -
Due to other funds 1,118,912 -
Total liabilities 2,518,866 -
Fund Balances:

Nonspendable 38,338 -
Restricted 15,022,383 -
Committed 2,503,392 535,000
Assigned 140,926 -
Unassigned (6,400) -
Total fund balances 17,698,639 535,000
Total liabilities and fund balances $ 20,217,505 535,000 $ (Concluded)
City of Paramount
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
111
Community HOME Paramount After School
Development HOME American Housing Education
Block Grant Partnership Act Rescue Plan Authority & Safety REVENUES:

Interest and use of property - $ - $ - $ 202 $ 5,539 $
Intergovernmental revenues 283,139 171,410 119,498 - 1,957,311 Charges for services - - - - -
Other revenue - - - - -
Total revenues 171,410 283,139 119,498 202 1,962,850
EXPENDITURES:

Current:

General government 32,605 4,328 - - -
Community development 150,513 151,082 - 100,818 -
Public safety - - 119,498 - -
Community services 97,650 - - - 2,352,617
Public works - - - - -
Capital outlay:

Streets, sidewalks and signals - - - - -
Parks - - - - -
Other - - - - -
Debt Service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures 155,410 280,768 119,498 100,818 2,352,617 Net change in fund balances 16,000 2,371 - (100,616) (389,767) FUND BALANCES:

Beginning of year - 129,557 - 1,289,191 515,102
End of year $ 145,557 2,371 $ - $ 1,188,575 $ 125,335 $ (Continued)
City of Paramount
For the Year Ended June 30, 2024
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Special Revenue Funds
112
Disability
State Gas Traffic Waste AB2766 Access and
Tax Safety Reduction Fees Subvention Education
REVENUES:

Interest and use of property 38,083 $ - $ 19,121 $ 2,512 $ 2,729 $ Intergovernmental revenues 1,446,855 65,035 - 70,186 -
Charges for services - - 73,970 - 8,540
Other revenue - - - - -
Total revenues 65,035 1,484,938 93,091 72,698 11,269
EXPENDITURES:

Current:

General government - - - 3,660 -
Community development - - - - -
Public safety - 65,035 - - -
Community services - - - - -
Public works 1,142,518 - 105,169 40,036 -
Capital outlay:

Streets, sidewalks and signals - - - - -
Parks - - - - -
Other - - - 6,800 -
Debt Service:

Principal - - - 35,024 -
Interest and fiscal charges - - - 7,137 -
Total expenditures 65,035 1,142,518 105,169 92,657 -
Net change in fund balances - 342,420 (12,078) (19,959) 11,269 FUND BALANCES:

Beginning of year 673,599 - 432,597 79,973 56,811
End of year $ - 1,016,019 $ 420,519 $ 60,014 $ 68,080 $ (Continued)
Special Revenue Funds
For the Year Ended June 30, 2024
City of Paramount
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
113
SB1 Road
Maint & Rehab Proposition A Proposition C Measure R Measure M (RMRA) Transit Tax Transit Tax Transit Tax Transit Tax
REVENUES:

Interest and use of property 44,005 $ 93,468 $ 68,863 $ 87,065 $ 76,608 $ Intergovernmental revenues 1,380,185 1,391,500 1,154,217 865,392 977,212 Charges for services - 791 - - -
Other revenue - - 9,865 - -
Total revenues 1,485,759 1,424,190 1,232,945 952,457 1,053,820 EXPENDITURES:

Current:

General government - 69,039 69,127 48,097 34,340
Community development - 34,923 - - -
Public safety - 117,289 - - -
Community services - 708,979 - - -
Public works - 154,433 68,621 11,055 24,209
Capital outlay:

Streets, sidewalks and signals 210,101 - 819,000 497,265 313,195 Parks - - - - -
Other - - - - -
Debt Service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures 1,084,663 210,101 956,748 556,417 371,744 Net change in fund balances 401,096 1,214,089 276,197 396,040 682,076 FUND BALANCES:

Beginning of year 488,270 1,782,464 1,301,233 1,890,873 1,354,208 End of year $ 2,183,560 1,702,359 $ 1,577,430 $ 2,286,913 $ 2,036,284 $ (Continued)
Special Revenue Funds
City of Paramount
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
114
Measure W Sewer Public
Safe Clean Measure A Reconstruction Public Access
Water Parks Fees Art Fees Fees
REVENUES:

Interest and use of property 64,367 $ - $ 11,007 $ 32,047 $ 9,953 $ Intergovernmental revenues 643,019 1,345,851 - - -
Charges for services - - 553 230,510 36,186
Other revenue - - - - -
Total revenues 1,345,851 707,386 11,560 262,557 46,139
EXPENDITURES:

Current:

General government - - - 8,708 -
Community development - - - - -
Public safety - - - - -
Community services - 84,681 - - -
Public works 152,658 - - - -
Capital outlay:

Streets, sidewalks and signals - - - - -
Parks - 1,261,170 - - -
Other 139,660 - - 167,842 -
Debt Service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures 1,345,851 292,318 - 176,550 -
Net change in fund balances - 415,068 11,560 86,007 46,139 FUND BALANCES:

Beginning of year 1,278,981 - 245,949 660,304 211,670
End of year $ - 1,694,049 $ 257,509 $ 746,311 $ 257,809 $ Special Revenue Funds
City of Paramount
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
115
Total
General Community Special
Storm Drain Plan Service Benefit Revenue
Fees Fees Assessments Agreement Fund
REVENUES:

Interest and use of property 25,609 $ 26,697 $ - $ - $ 607,875 $ Intergovernmental revenues - - - 888,470 12,759,280
Charges for services 61,792 43,999 14,143 - 470,484
Other revenue - - - - 9,865
Total revenues 70,696 87,401 14,143 888,470 13,847,504
EXPENDITURES:

Current:

General government - - 4,834 137,130 411,868
Community development - 25,664 - 24,167 487,167
Public safety - - - 33,113 334,935
Community services - - - 225,568 3,469,495
Public works - - 9,309 94,429 1,802,437
Capital outlay:

Streets, sidewalks and signals - - - - 1,839,561
Parks - - - - 1,261,170
Other - - - 233,137 547,439
Debt Service:

Principal - - - - 35,024
Interest and fiscal charges - - - - 7,137
Total expenditures 25,664 - 14,143 747,544 10,196,233
Net change in fund balances 45,032 87,401 - 140,926 3,651,271 FUND BALANCES:

Beginning of year 538,499 583,087 - - 13,512,368
End of year $ 628,119 625,900 $ - $ 140,926 $ 17,163,639 $ (Continued)
Special Revenue Funds
City of Paramount
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
116
Capital
Projects Fund Total
Paramount Nonmajor
Parking Governmental
Authority Funds
REVENUES:

Interest and use of property $ 607,875 - $
Intergovernmental revenues 12,759,280 -
Charges for services 470,484 -
Other revenue 9,865 -
Total revenues 13,847,504 -
EXPENDITURES:

Current:

General government 411,868 -
Community development 487,167 -
Public safety 334,935 -
Community services 3,469,495 -
Public works 1,802,437 -
Capital outlay:

Streets, sidewalks and signals 1,839,561 -
Parks 1,261,170 -
Other 547,439 -
Debt Service:

Principal 35,024 -
Interest and fiscal charges 7,137 -
Total expenditures 10,196,233 -
Net change in fund balances 3,651,271 -
FUND BALANCES:

Beginning of year 14,047,368 535,000
End of year $ 17,698,639 535,000 $
(Concluded)
City of Paramount
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
117
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues 873,800 $ 873,800 $ 283,139 $ (590,661) $ Total revenues 873,800 873,800 283,139 (590,661)
EXPENDITURES:

Current:

General government 42,900 42,900 32,605 10,295
Community development 352,750 352,750 150,513 202,237
Community services 113,150 113,150 97,650 15,500
Total expenditures 508,800 508,800 280,768 228,032
Net change in fund balance $ 365,000 365,000 $ 2,371 (362,629) $ FUND BALANCE:

Beginning of year -
End of year $ 2,371
Budgeted Amounts
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund
For the Year Ended June 30, 2024
118
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues 406,300 $ 406,300 $ 171,410 $ (234,890) $ Total revenues 406,300 406,300 171,410 (234,890)
EXPENDITURES:

Current:

General government 9,750 9,750 4,328 5,422
Community development 396,550 396,550 151,082 245,468
Total expenditures 406,300 406,300 155,410 250,890
Net change in fund balance $ - - $ 16,000 16,000 $
FUND BALANCE:

Beginning of year 129,557
End of year $ 145,557
Budgeted Amounts
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual HOME Partnership Act Special Revenue Fund
For the Year Ended June 30, 2024
119
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues 350,000 $ 350,000 $ 119,498 $ (230,502) $ Total revenues 350,000 350,000 119,498 (230,502)
EXPENDITURES:

Current:

Public Safety 350,000 350,000 119,498 230,502
Total expenditures 350,000 350,000 119,498 230,502
Net change in fund balance $ - - $ - $
FUND BALANCE:

Beginning of year -
End of year $ -
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual HOME American Rescue Plan
For the Year Ended June 30, 2024
Budgeted Amounts
120
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 9,600 $ 9,600 $ 202 $ (9,398) $ Total revenues 9,600 9,600 202 (9,398)
EXPENDITURES:

Current:

Community development 302,000 302,000 100,818 201,182
Total expenditures 302,000 302,000 100,818 201,182
Net change in fund balance $ (292,400) (292,400) $ (100,616) 191,784 $ FUND BALANCE:

Beginning of year 1,289,191
End of year $ 1,188,575
Budgeted Amounts
City of Paramount
For the Year Ended June 30, 2024
Paramount Housing Authority Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 121
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 5,300 $ 5,300 $ 5,539 $ 239 $ Intergovernmental revenues 2,425,700 2,425,700 1,957,311 (468,389) Total revenues 2,431,000 2,431,000 1,962,850 (468,150)
EXPENDITURES:

Current:

Community services 2,425,700 2,425,700 2,352,617 73,083 Total expenditures 2,425,700 2,425,700 2,352,617 73,083 Net change in fund balance $ 5,300 5,300 $ (389,767) (395,067) $ FUND BALANCE:

Beginning of year 515,102
End of year $ 125,335
Budgeted Amounts
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual After School Education and Safety Special Revenue Fund
For the Year Ended June 30, 2024
122
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 11,900 $ 11,900 $ 38,083 $ 26,183 $ Intergovernmental revenues 1,434,950 1,434,950 1,446,855 11,905 Total revenues 1,446,850 1,446,850 1,484,938 38,088
EXPENDITURES:

Current:

Public works 1,350,900 1,350,900 1,142,518 208,382
Total expenditures 1,350,900 1,350,900 1,142,518 208,382 Net change in fund balance $ 95,950 95,950 $ 342,420 246,470 $ FUND BALANCE:

Beginning of year 673,599
End of year $ 1,016,019
Budgeted Amounts
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State Gas Tax Special Revenue Fund
For the Year Ended June 30, 2024
123
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues 100,000 $ 100,000 $ 65,035 $ (34,965) $ Total revenues 100,000 100,000 65,035 (34,965)
EXPENDITURES:

Current:

Public safety 100,000 100,000 65,035 34,965
Total expenditures 100,000 100,000 65,035 34,965
Net change in fund balance $ - - $ - - $
FUND BALANCE:

Beginning of year -
End of year $ -
Budgeted Amounts
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Traffic Safety Special Revenue Fund
For the Year Ended June 30, 2024
124
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 10,650 $ 10,650 $ 19,121 $ 8,471 $ Charges for services 79,000 79,000 73,970 (5,030)
Total revenues 89,650 89,650 93,091 3,441
EXPENDITURES:

Current:

Public works 143,450 143,450 105,169 38,281
Total expenditures 143,450 143,450 105,169 38,281
Net change in fund balance $ (53,800) (53,800) $ (12,078) 41,722 $ FUND BALANCE:

Beginning of year 432,597
End of year $ 420,519
Budgeted Amounts
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Waste Reduction Fees Special Revenue Fund
For the Year Ended June 30, 2024
125
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 5,350 $ 5,350 $ 2,512 $ (2,838) $ Intergovernmental revenues 70,000 70,000 70,186 186
Total revenues 75,350 75,350 72,698 (2,652)
EXPENDITURES:

Current:

General government 13,800 13,800 3,660 10,140
Public works 67,050 18,000 40,036 (22,036)
Capital outlay:

Other 25,000 25,000 6,800 18,200
Debt service:

Principal - 42,099 35,024 7,075
Interest - 6,951 7,137 (186)
Total expenditures 105,850 105,850 92,657 13,193
Net change in fund balance $ (30,500) (30,500) $ (19,959) 10,541 $ FUND BALANCE:

Beginning of year 79,973
End of year $ 60,014
Budgeted Amounts
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual AB2766 Subvention Funds Special Revenue Fund
For the Year Ended June 30, 2024
126
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 1,200 $ 1,200 $ 2,729 $ 1,529 $ Charges for services 8,500 8,500 8,540 40
Total revenues 9,700 9,700 11,269 1,569
Net change in fund balance $ 9,700 9,700 $ 11,269 1,569 $ FUND BALANCE:

Beginning of year 56,811
End of year $ 68,080
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Disability Access and Education Fees Special Revenue Fund For the Year Ended June 30, 2024
Budgeted Amounts
127
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 23,500 $ 23,500 $ 44,005 $ 20,505 $ Intergovernmental revenues 1,295,950 1,295,950 1,380,185 84,235 Total revenues 1,319,450 1,319,450 1,424,190 104,740
EXPENDITURES:

Capital outlay:

Streets, sidewalks and signals 1,336,150 1,432,399 210,101 1,222,298 Total expenditures 1,432,399 1,336,150 210,101 1,222,298 Net change in fund balance $ (112,949) (16,700) $ 1,214,089 1,327,038 $ FUND BALANCE:

Beginning of year 488,270
End of year $ 1,702,359
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual SB1 Road Maintenance & Rehabilitation Account Special Revenue Fund For the Year Ended June 30, 2024
Budgeted Amounts
128
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 38,950 $ 38,950 $ 93,468 $ 54,518 $ Intergovernmental revenues 1,516,650 1,516,650 1,391,500 (125,150) Charges for services 1,500 1,500 791 (709)
Total revenues 1,557,100 1,557,100 1,485,759 (71,341)
EXPENDITURES:

Current:

General government 65,850 65,850 69,039 (3,189)
Community development 32,350 35,438 34,923 515
Public safety 115,700 115,700 117,289 (1,589)
Community services 640,850 683,250 708,979 (25,729)
Public works 53,200 53,200 154,433 (101,233)
Capital outlay
Streets, sidewalks and signals 400,000 400,000 - 400,000 Total expenditures 1,353,438 1,307,950 1,084,663 268,775 Net change in fund balance $ 203,662 249,150 $ 401,096 197,434 $ FUND BALANCE:

Beginning of year 1,782,464
End of year $ 2,183,560
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Proposition A Transit Tax Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
129
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 28,750 $ 28,750 $ 68,863 $ 40,113 $ Intergovernmental revenues 1,258,000 1,258,000 1,154,217 (103,783) Other revenues - - 9,865 9,865
Total revenues 1,286,750 1,286,750 1,232,945 (53,805)
EXPENDITURES:

Current:

General government 72,750 72,750 69,127 3,623
Public works 96,950 96,950 68,621 28,329
Capital outlay:

Streets, sidewalks and signals 1,001,000 2,160,229 819,000 1,341,229 Total expenditures 2,329,929 1,170,700 956,748 1,373,181 Net change in fund balance $ (1,043,179) 116,050 $ 276,197 1,319,376 $ FUND BALANCE:

Beginning of year 1,301,233
End of year $ 1,577,430
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Proposition C Transit Tax Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
130
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 35,650 $ 35,650 $ 87,065 $ 51,415 $ Intergovernmental revenues 943,500 943,500 865,392 (78,108) Total revenues 979,150 979,150 952,457 (26,693)
EXPENDITURES:

Current:

General government 51,400 51,400 48,097 3,303
Public works 11,900 11,900 11,055 845
Capital outlay:

Streets, sidewalks and signals 200,000 498,100 497,265 835 Total expenditures 561,400 263,300 556,417 4,983
Net change in fund balance $ 417,750 715,850 $ 396,040 (21,710) $ FUND BALANCE:

Beginning of year 1,890,873
End of year $ 2,286,913
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure R Transit Tax Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
131
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 27,400 $ 27,400 $ 76,608 $ 49,208 $ Intergovernmental revenues 1,069,300 1,069,300 977,212 (92,088) Total revenues 1,096,700 1,096,700 1,053,820 (42,880)
EXPENDITURES:

Current:

General government 51,400 51,400 34,340 17,060
Public works 26,950 26,950 24,209 2,741
Capital outlay:

Streets, sidewalks and signals 346,000 1,716,717 313,195 1,403,522 Total expenditures 1,795,067 424,350 371,744 1,423,323
Net change in fund balance $ (698,367) 672,350 $ 682,076 1,380,443 $ FUND BALANCE:

Beginning of year 1,354,208
End of year $ 2,036,284
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure M Transit Tax Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
132
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 33,150 $ 33,150 $ 64,367 $ 31,217 $ Intergovernmental revenues 653,600 653,600 643,019 (10,581) Total revenues 686,750 686,750 707,386 20,636
EXPENDITURES:

Current:

Public works 195,000 195,000 152,658 42,342
Capital outlay:

Other 55,000 335,530 139,660 195,870
Total expenditures 530,530 250,000 292,318 238,212
Net change in fund balance $ 156,220 436,750 $ 415,068 258,848 $ FUND BALANCE:

Beginning of year 1,278,981
End of year $ 1,694,049
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure W Safe Clean Water Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
133
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues 1,361,200 $ 2,277,100 $ 1,345,851 $ (931,249) $ Total revenues 2,277,100 1,361,200 1,345,851 (931,249)
EXPENDITURES:

Current:

Community services 150,200 150,200 84,681 65,519
Capital outlay:

Parks 1,211,000 2,133,950 1,261,170 872,780
Total expenditures 2,284,150 1,361,200 1,345,851 938,299 Net change in fund balance $ (7,050) - $ - 7,050 $
FUND BALANCE:

Beginning of year -
End of year $ -
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure A Parks Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
134
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 5,750 $ 5,750 $ 11,007 $ 5,257 $ Charges for services 1,500 1,500 553 (947)
Total revenues 7,250 7,250 11,560 4,310
Net change in fund balance $ 7,250 7,250 $ 11,560 $ 4,310 $ FUND BALANCE:

Beginning of year 245,949
End of year $ 257,509
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Sewer Reconstruction Fees Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
135
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 5,300 $ 5,300 $ 32,047 $ 26,747 $ Charges for services 500,000 500,000 230,510 (269,490)
Total revenues 505,300 505,300 262,557 (242,743)
EXPENDITURES:

Current:

General government 7,500 7,500 8,708 (1,208)
Capital outlay:

Other 215,000 285,250 167,842 117,408
Total expenditures 292,750 222,500 176,550 116,200
Net change in fund balance $ 212,550 282,800 $ 86,007 (126,543) $ FUND BALANCE:

Beginning of year 660,304
End of year $ 746,311
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Art Fees Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
136
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 4,100 $ 4,100 $ 9,953 $ 5,853 $ Charges for services 48,000 48,000 36,186 (11,814)
Total revenues 52,100 52,100 46,139 (5,961)
EXPENDITURES:

Current:

General government 5,000 5,000 - 5,000
Total expenditures 5,000 5,000 - 5,000
Net change in fund balance $ 47,100 47,100 $ 46,139 $ (961) $ FUND BALANCE:

Beginning of year 211,670
End of year $ 257,809
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Access Fees Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
137
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 11,450 $ 11,450 $ 25,609 $ 14,159 $ Charges for services 72,000 72,000 61,792 (10,208)
Total revenues 83,450 83,450 87,401 3,951
Net change in fund balance $ 83,450 83,450 $ 87,401 $ 3,951 $ FUND BALANCE:

Beginning of year 538,499
End of year $ 625,900
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Storm Drain Fees Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
138
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest and use of property 13,650 $ 13,650 $ 26,697 $ 13,047 $ Charges for services 43,000 43,000 43,999 999
Total revenues 56,650 56,650 70,696 14,046
EXPENDITURES:

Current:

Community development 476,750 476,750 25,664 451,086
Total expenditures 476,750 476,750 25,664 451,086
Net change in fund balance $ (420,100) (420,100) $ 45,032 465,132 $ FUND BALANCE:

Beginning of year 583,087
End of year $ 628,119
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Plan Fees Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
139
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services 14,150 $ 14,150 $ 14,143 $ (7) $
Total revenues 14,150 14,150 14,143 (7)
EXPENDITURES:

Current:

General government 4,834 4,834 4,834 -
Public works 9,309 9,309 9,309 -
Total revenues 14,143 14,143 14,143 -
Net change in fund balance $ 7 7 $ - $ (7) $
FUND BALANCE:

Beginning of year -
End of year $ -
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Service Assessments Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
140
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues 1,000,000 $ 1,200,000 $ 888,470 $ (311,530) $ Total revenues 1,200,000 1,000,000 888,470 (311,530)
EXPENDITURES:

Current:

General government 100,000 140,000 137,130 2,870
100,000 - 24,167 75,833
Public safety - 39,800 33,113 6,687
Community service 200,000 260,000 225,568 34,432
Public works 200,000 200,000 94,429 105,571
Capital outlay
Other 460,200 500,000 233,137 227,063
Total expenditures 1,200,000 1,000,000 747,544 452,456
Net change in fund balance $ - - $ 140,926 $ 140,926 $
FUND BALANCE:

Beginning of year -
End of year $ 140,926
City of Paramount
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Benefit Agreement Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
141
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142

STATISTICAL SECTION
(Unaudited)
143
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144
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the government's financial performance and well being have changed over time. 146 - 155 Revenue Capacity
These schedules contain information to help the reader assess one of the government's most significant local revenue sources - property tax. 156 - 160
Debt Capacity
These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. 161 - 166 Demographic and Economic Information
This schedule offers demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. 167 - 168 Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. 169 - 173 City of Paramount
Statistical Section Overview
(Unaudited)
145
2015* 2016 2017 2018 2019
Governmental activities:

Net investment in capital assets $ 79,690,688 79,511,962 $ 79,225,417 $ 76,381,563 $ 75,437,457 $ Restricted 4,309,004 6,647,656 4,181,878 5,874,235 5,553,952 Unrestricted 2,027,521 8,844 (2,208,468) (6,436,004) (5,371,456) Total governmental activities net position 88,187,139 84,008,536 81,198,827 75,819,794 75,619,953 Business-type activities:

Net investment in capital assets 17,905,387 16,981,731 17,328,598 9,979,726 16,275,296 Restricted - - - - -
Unrestricted 709,203 894,214 1,517,233 7,573,532 1,556,622 Total business-type activities net position 17,875,945 18,614,590 18,845,831 17,553,258 17,831,918 Primary government:

Net investment in capital assets 97,596,075 96,493,693 96,554,015 86,361,289 91,712,753 Restricted 4,309,004 6,647,656 4,181,878 5,874,235 5,553,952 Unrestricted 718,047 2,921,735 (691,235) 1,137,528 (3,814,834) Total primary government net position 106,063,084 $ 102,623,126 $ 100,044,658 $ 93,373,052 $ 93,451,871 $ * Numbers reflect the implementation of GASB Statement No. 68.

Source:

City of Paramount audited financial statements
Fiscal Year
City of Paramount
Table 1
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
146
2020 2021 2022 2023 2024
Governmental activities:

Net investment in capital assets $ 70,923,502 72,665,264 $ 73,014,467 $ 75,768,195 $ 76,132,951 $ Restricted 11,040,989 6,161,908 10,792,349 12,716,249 16,004,360 Unrestricted (5,601,349) (1,963,088) 5,107,970 19,094,624 24,087,382 Total governmental activities net position 73,225,823 80,001,403 88,914,786 107,579,068 116,224,693 Business-type activities:

Net investment in capital assets 12,428,094 16,132,664 16,310,930 16,976,379 21,013,078 Restricted - - - - -
Unrestricted 2,939,592 1,257,073 3,239,458 1,550,050 (4,194,981) Total business-type activities net position 17,389,737 15,367,686 19,550,388 18,526,429 16,818,097 Primary government:

Net investment in capital assets 83,351,596 88,797,928 89,325,397 92,744,574 97,146,029 Restricted 11,040,989 6,161,908 10,792,349 12,716,249 16,004,360 Unrestricted 976,504 (4,344,276) 8,347,428 20,644,674 19,892,401 Total primary government net position 90,615,560 $ 95,369,089 $ 108,465,174 $ 126,105,497 $ 133,042,790 $ * Numbers reflect the implementation of GASB Statement No. 68.

Source:

City of Paramount audited financial statements
City of Paramount
Table 1
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
147
2015 2016 2017 2018 2019
Expenses:

Governmental activities:

General government $ 6,846,940 6,409,474 $ 7,308,976 $ 7,184,690 $ 7,088,630 $ Community development 5,007,589 2,172,414 2,039,989 2,461,135 1,926,054 Public safety 11,218,541 10,662,749 11,139,959 11,888,055 11,862,334 Community services and recreation 5,830,850 6,074,382 6,330,295 6,368,824 6,413,969 Public works 10,571,784 10,015,353 10,620,526 10,611,799 10,440,155 Interest on long-term debt - - - - -
Total governmental activities expenses 35,334,372 39,475,704 37,439,745 38,514,503 37,731,142 Business-type activities:

Water 7,392,150 7,685,532 7,677,359 8,581,886 7,793,957 Total business-type activities expenses 7,392,150 7,685,532 7,677,359 8,581,886 7,793,957 Total primary government expenses 42,726,522 47,161,236 45,117,104 47,096,389 45,525,099 Program revenues:

Governmental activities:

Charges for services:

General government 199,877 291,859 167,554 185,444 191,359 Community development 508,124 347,387 381,084 486,252 381,846 Public safety 119,425 125,707 130,937 108,650 138,403
Community services and recreation 257,191 264,633 282,814 213,050 215,788 Public works 528,391 759,040 675,278 826,430 772,886
Operating grants and contributions 8,035,786 7,541,476 7,409,586 8,574,899 7,971,987 Capital grants and contributions 1,564,891 2,419,414 2,840,656 3,226,132 3,252,151 Total governmental activities
program revenues 11,151,212 11,811,989 11,887,909 13,620,857 12,924,420 Business-type activities:

Charges for services:

Water 7,040,916 6,972,036 7,812,294 7,946,567 7,750,500 Operating grants and contributions - - - - -
Capital grants and contributions - - - 106,368 166,689
Total business-type activities
program revenues 7,040,916 6,972,036 7,812,294 8,052,935 7,917,189 Total primary government
program revenues 18,192,128 18,784,025 19,700,203 21,673,792 20,841,609 City of Paramount
Table 2
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
148
2015 2016 2017 2018 2019
Net revenues (expenses):

Governmental activities (24,183,160) (27,663,715) (25,551,836) (24,893,646) (24,806,722) Business-type activities (351,234) (713,496) 134,935 (528,951) 123,232 Total net revenues (expenses) (24,534,394) (28,377,211) (25,416,901) (25,422,597) (24,683,490) General revenues and other changes in net position:

Governmental activities:

Taxes:

Sales tax 6,129,480 5,568,430 7,278,424 7,712,771 8,449,883 In-Lieu Sales Tax 1,293,617 1,916,619 - - -
Transaction & Use Tax - - - - -
Utility Users tax 3,981,658 2,289,871 3,679,314 3,757,405 3,735,391 Franchise Tax 1,635,366 1,706,318 1,637,474 1,784,998 1,818,389 Property Tax 2,052,016 2,041,764 2,099,550 2,306,211 2,341,486 Business License 977,307 990,573 962,675 947,111 988,043 Investment earnings 64,064 40,885 97,769 202,802 362,253 Motor Vehicle license fees, unrestricted 5,468,904 5,346,425 5,779,305 6,068,259 6,355,849 Other revenues 386,535 518,840 303,949 647,385 555,587
Extraordinary item-Redevelopment Agency 1,496,165 - 903,667 484,475 - Transfers - - - - -
Total governmental activities 20,419,725 23,485,112 22,742,127 23,911,417 24,606,881 Business-type activities:

Investment income 9,144 13,483 24,536 56,884 100,630
Other revenues 117,285 54,673 48,722 56,697 54,798
Extraordinary item-Redevelopment Agency 528,516 1,383,986 23,048 - - Transfers - - - - -
Total business-type activities 654,945 1,452,142 96,306 113,581 155,428 Total primary government 21,074,670 24,937,254 22,838,433 24,024,998 24,762,309 Changes in net position
Governmental activities (3,763,435) (4,178,603) (2,809,709) (982,229) (199,841) Business-type activities 303,711 738,646 231,241 (415,370) 278,660 Total primary government (3,459,724) $ (3,439,957) $ (2,578,468) $ (1,397,599) $ 78,819 $ Source:

City of Paramount audited financial statements
City of Paramount
Table 2
Fiscal Year
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
149
2020 2021 2022 2023 2024
Expenses:

Governmental activities:

General government $ 7,348,010 7,357,400 $ 8,888,563 $ 10,059,418 $ 8,911,185 $ Community development 3,142,509 2,405,848 3,166,168 4,817,632 3,509,880 Public safety 12,749,502 12,179,427 13,637,499 15,311,548 15,675,326 Community services and recreation 5,864,047 6,121,450 6,592,797 7,774,667 11,440,951 Public works 12,475,482 12,053,263 13,309,135 16,159,020 15,169,110 Interest on long-term debt - - 389,603 365,104 368,796
Total governmental activities expenses 40,117,388 41,579,550 45,983,765 54,487,389 55,075,248 Business-type activities:

Water 8,178,235 9,861,949 8,895,635 11,427,517 11,240,964 Total business-type activities expenses 8,178,235 9,861,949 8,895,635 11,427,517 11,240,964 Total primary government expenses 48,295,623 51,441,499 54,879,400 65,914,906 66,316,212 Program revenues:

Governmental activities:

Charges for services:

General government 222,426 193,393 210,847 183,320 240,018 Community development 229,201 603,104 741,976 3,687,530 2,587,812 Public safety 107,691 84,128 69,127 137,960 110,616
Community services and recreation 96,963 60,415 134,785 240,657 251,956 Public works 614,480 790,144 5,549,354 260,244 258,485
Operating grants and contributions 8,100,026 9,449,889 10,313,132 17,729,029 10,202,595 Capital grants and contributions 3,524,293 4,577,817 4,917,424 6,256,776 5,835,628 Total governmental activities
program revenues 12,895,080 15,758,890 21,936,645 28,495,516 19,487,110 Business-type activities:

Charges for services:

Water 7,589,241 7,796,180 8,414,322 8,355,545 9,280,735 Operating grants and contributions - - - 3,438,975 -
Capital grants and contributions - - - 757,063 -
Total business-type activities
program revenues 7,589,241 7,796,180 8,414,322 12,551,583 9,280,735 Total primary government
program revenues 20,484,321 23,555,070 30,350,967 41,047,099 28,767,845 City of Paramount
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
150
2020 2021 2022 2023 2024
Net revenues (expenses):

Governmental activities (27,222,308) (25,820,660) (24,047,120) (25,991,873) (35,588,138) Business-type activities (588,994) (2,065,769) (481,313) 1,124,066 (1,960,229) Total net revenues (expenses) (27,811,302) (27,886,429) (24,528,433) (24,867,807) (37,548,367) General revenues and other changes in net position:

Governmental activities:

Taxes:

Sales tax 9,459,141 8,265,394 11,483,195 12,261,365 12,187,616 In-Lieu Sales Tax - - - - -
Transaction & Use Tax 5,585,397 - 7,238,769 8,113,036 8,551,198 Utility Users tax 3,261,854 3,484,876 4,183,383 4,492,823 4,652,691 Franchise Tax 1,904,943 1,885,967 2,049,479 2,196,469 2,471,532 Property Tax 2,763,914 2,563,106 2,847,420 3,059,499 3,095,924 Business License 893,927 893,150 988,969 962,760 1,046,281 Investment earnings 116,104 320,851 57,848 793,392 2,239,275 Motor Vehicle license fees, unrestricted 7,362,208 6,915,240 7,573,107 8,088,374 8,406,004 Other revenues 1,248,752 505,206 1,197,449 2,475,170 1,583,242 Extraordinary item-Redevelopment Agency - - - - -
Transfers - (5,612) (4,659,116) - -
Total governmental activities 24,828,178 32,596,240 32,960,503 42,442,888 44,233,763 Business-type activities:

Investment income 90,318 17,668 1,349 65,243 251,897
Other revenues 50,883 26,050 3,550 - -
Extraordinary item-Redevelopment Agency - - - - -
Transfers 5,612 - 4,659,116 - -
Total business-type activities 146,813 43,718 4,664,015 65,243 251,897 Total primary government 24,974,991 32,639,958 37,624,518 42,508,131 44,485,660 Changes in net position
Governmental activities (2,394,130) 6,775,580 8,913,383 16,451,015 8,645,625 Business-type activities (442,181) (2,022,051) 4,182,702 1,189,309 (1,708,332) Total primary government (2,836,311) $ 4,753,529 $ 13,096,085 $ 17,640,324 $ 6,937,293 $ Source:

City of Paramount audited financial statements
City of Paramount
Table 2
Fiscal Year
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
151
2015 2016 2017 2018 2019
General fund:

Nonspendable 3,605,980 $ 355,213 $ 273,028 $ 276,969 $ 558,425 $ Restricted - - - - -
Commited - - - - -
Assigned 3,563,827 3,563,827 2,620,286 3,675,028 4,613,579 Unassigned 11,809,618 12,121,484 12,557,530 12,647,525 12,776,116 Total general fund 18,979,425 16,040,524 15,450,844 16,599,522 17,948,120 All other governmental funds:

Nonspendable 535,000 535,000 - - -
Restricted 4,974,082 4,309,004 4,909,124 6,448,479 6,245,337 Committed 1,138,574 1,130,117 1,130,425 1,406,939 1,412,888 Assigned - - - - -
Unassigned - - - - -
Total all other governmental funds 6,647,656 $ 5,974,121 $ 6,039,549 $ 7,855,418 $ 7,658,225 $ Source:

City of Paramount audited financial statements
Fiscal Year
City of Paramount
Table 3
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
152
2020 2021 2022 2023 2024
General fund:

Nonspendable 299,648 $ 372,030 $ 419,767 $ 437,805 $ 302,963 $ Restricted - - - 7,826 10,501
Commited - - - 23,751,035 23,932,500
Assigned 5,419,180 8,316,428 10,202,216 21,365,038 23,827,602 Unassigned 12,798,092 14,690,303 19,185,452 1,637,546 2,430,966 Total general fund 18,516,920 23,378,761 29,807,435 47,199,250 50,504,532 All other governmental funds:

Nonspendable - - - 21,535 38,338
Restricted 7,237,049 9,645,978 12,164,069 12,687,421 15,302,486 Committed 1,394,450 1,395,011 1,144,636 1,781,890 2,503,392 Assigned - - - - 460,926
Unassigned - - - - (6,400)
Total all other governmental funds 8,631,499 $ 11,040,989 $ 13,308,705 $ 14,490,846 $ 18,298,742 $ Source:

City of Paramount audited financial statements
Fiscal Year
City of Paramount
Table 3
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
153
2015 2016 2017 2018 2019
Revenues:

Taxes 14,513,575 $ 16,069,444 $ 15,657,437 $ 16,508,496 $ 16,508,496 $ Licenses and permits 640,375 788,472 717,919 814,146 814,146 Fines & Penalties 680,755 727,000 738,338 921,744 921,744 Interest & use of property 149,617 152,768 161,069 293,406 293,406 Intergovernmental revenues 13,162,209 13,628,376 14,146,748 15,780,459 15,780,459 Charges for services 820,285 985,224 866,124 949,527 949,527 Other 2,898,830 1,461,768 1,438,161 1,771,286 1,771,286 Total revenues 32,865,646 33,813,052 33,725,796 37,039,064 37,039,064 Expenditures
Current:

General government 5,621,050 5,533,812 5,737,211 6,117,349 6,117,349 Community development 2,155,118 4,908,494 1,640,630 1,962,771 1,962,771 Public safety 10,672,716 11,080,181 10,744,979 11,629,250 11,629,250 Community services & recreation 4,667,924 4,861,967 4,950,485 5,219,398 5,219,398 Public works 5,807,592 6,173,761 6,892,265 6,674,196 6,674,196 Debt service:

Principal retirement - - - - -
Interest and fiscal charges - - - - -
Capital Outlay
Water - - - 106,368 106,368
Streets, sidewalks and signals 1,921,144 3,758,222 3,093,146 2,223,530 2,223,530 Parks 788,748 566,101 1,165,442 245,589 245,589
Other 320,176 542,950 205,254 408,034 408,034
Total expenditures 31,954,468 37,425,488 34,429,412 34,586,485 34,586,485 Excess (deficiency) of
revenues over (under)
expenditures 911,178 (3,612,436) (703,616) 2,452,579 2,452,579 Other financing sources (uses):

Transfers in - - - 35,249 35,249
Transfers out - - - (135,249) (135,249)
Issuance of debt - - - - -
Purchase finance - - - 127,493 127,493
Payment to bond escrow agent - - - - -
Total other financing
sources (uses) - - - 27,493 27,493
Extraordinary and special items:

Extraordinary item-RDA - - - 484,475 484,475
Total extraordinary and
special items - - - 484,475 484,475
Net change in fund balances 911,178 $ (3,612,436) $ (703,616) $ 2,964,547 $ 2,964,547 $ Debt service as a percentage of
noncapital expenditures 0.0% 0.0% 0.0% 0.0% 0.0%
Source:

City of Paramount audited financial statements
City of Paramount
Table 4
Changes in Fund Balances of Governmental Funds
Fiscal Year
Last Ten Fiscal Years
(modified accrual basis of accounting)
154
2020 2021 2022 2023 2024
Revenues:

Taxes 17,092,493 $ 23,869,176 $ 28,791,215 $ 31,085,952 $ 32,005,239 $ Licenses and permits 620,630 765,869 831,664 1,734,089 1,229,352 Fines & Penalties 820,853 825,192 985,543 1,240,041 1,158,077 Interest & use of property 437,853 181,255 182,850 948,099 2,737,054 Intergovernmental revenues 16,553,788 19,447,825 25,340,508 31,242,078 23,239,949 Charges for services 590,600 905,546 1,150,541 2,115,365 1,257,819 Other 1,593,822 2,331,030 2,056,802 2,514,016 1,565,001 Total revenues 37,710,039 48,325,893 59,339,123 70,879,640 63,192,491 Expenditures
Current:

General government 6,679,602 7,150,058 24,430,744 7,828,026 8,700,097 Community development 1,955,450 3,144,315 2,616,052 4,026,101 3,570,394 Public safety 11,876,632 12,721,146 13,056,996 14,106,110 15,420,857 Community services & recreation 5,032,344 4,996,113 5,166,445 6,006,697 7,000,358 Public works 7,316,460 7,691,666 7,937,654 9,690,038 10,080,500 Debt service:

Principal retirement - - 26,239 1,348,743 1,341,611
Interest and fiscal charges - - 381,263 328,359 332,051 Capital Outlay
Water 5,612 - - - -
Streets, sidewalks and signals 2,872,345 3,185,722 4,208,347 6,477,107 2,787,251 Parks 230,656 739,645 2,543,074 1,474,302 2,223,749
Other 296,411 483,137 1,691,886 1,347,079 4,636,732
Total expenditures 36,265,512 40,111,802 44,901,912 52,632,562 56,093,600 Excess (deficiency) of
revenues over (under)
expenditures 1,444,527 8,214,091 14,437,211 18,247,078 7,098,891 Other financing sources (uses):

Transfers in - - - - -
Transfers out - (1,000,000) (5,859,116) - -
Issuance of debt - - - 326,879 -
Purchase finance 97,547 57,240 118,295 - -
Payment to bond escrow agent - - - - -
Total other financing
sources (uses) 97,547 (942,760) (5,740,821) 326,879 -
Extraordinary and special items:

Extraordinary item-RDA - - - - -
Total extraordinary and
special items - - - - -
Net change in fund balances 1,542,074 $ 7,271,331 $ 8,696,390 $ 18,573,957 $ 7,098,891 $ Debt service as a percentage of
noncapital expenditures 0.0% 0.0% 1.1% 3.9% 3.4%
Source:

City of Paramount audited financial statements
City of Paramount
Table 4
Changes in Fund Balances of Governmental Funds (Continued) Fiscal Year
Last Ten Fiscal Years
(modified accrual basis of accounting)
155
2013 2014 2015 2016 2017 2018
Apparel Stores 23,100 $ 22,999 $ 22,718 $ 22,954 $ 19,971 $ 20,746 $ Food Stores 25,097 24,989 25,551 22,141 20,589 21,936
Eating and Drinking Places 47,485 51,696 57,716 62,348 69,583 75,944 Building Materials 63,384 64,578 85,481 99,688 108,049 103,876 Auto Dealers and Supplies 14,941 13,531 15,294 16,959 17,004 16,212 Service Stations 100,545 98,520 81,019 67,146 72,252 83,100 Other Retail Stores 101,401 101,268 101,743 107,051 97,628 102,865 All Other Outlets 387,318 391,536 331,778 325,153 352,689 380,354 Total 763,271 $ 769,117 $ 721,300 $ 723,440 $ 757,765 $ 805,033 $ Sales and Use Tax rate 8.75% 9.00% 9.00% 9.50% 9.50% 9.50% Note:

The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

Sources:

State of California Board of Equalization
The HdL Companies
Calendar Year
City of Paramount
Table 5
Taxable Sales by Category
Last Ten Calendar Years
(modified accrual basis of accounting)
156
2019 2020 2021 2022 2023
Apparel Stores 20,803 $ 18,176 $ 25,989 $ 26,320 $ 27,596 $ Food Stores 22,665 25,257 23,682 24,624 26,201
Eating and Drinking Places 79,620 72,511 89,660 96,246 101,885 Building Materials 114,502 123,355 132,835 136,772 149,665 Auto Dealers and Supplies 12,373 17,916 18,721 19,356 18,262 Service Stations 88,083 63,259 107,373 142,325 131,804
Other Retail Stores 101,220 105,717 125,870 124,386 119,281 All Other Outlets 412,964 434,861 503,012 644,036 678,138 Total 852,230 $ 861,052 $ 1,027,142 $ 1,214,065 $ 1,252,832 $ Sales and Use Tax rate 10.25% 10.25% 10.25% 10.25% 10.25% Note:

The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

Sources:

State of California Board of Equalization
The HdL Companies
Table 5
City of Paramount
Taxable Sales by Category (Continued)
Last Ten Calendar Years
(modified accrual basis of accounting)
Calendar Year
157
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158
Calendar
Year City L.A. County L.A. County Total
Ended Direct Transportation Transportation County City State of Sales Tax December 31 Rate Authority Commission Transportation Operations California Rate 2013 0.00% 0.50% 1.00% 0.25% 0.75% 6.50% 9.00%
2014 0.00% 0.50% 1.00% 0.25% 0.75% 6.50% 9.00%
2015 0.00% 0.50% 1.00% 0.25% 0.75% 6.50% 9.00%
2016 0.00% 0.50% 1.00% 0.25% 0.75% 6.50% 9.00%
2017 0.00% 0.50% 1.00% 0.50% 0.25% 7.25% 9.50%
2018 0.00% 0.50% 1.00% 0.50% 0.25% 7.25% 9.50%
2019 0.00% 0.50% 1.00% 0.50% 0.25% 7.25% 9.50%
2020 0.75% 0.50% 1.00% 0.50% 0.25% 7.25% 10.25%
2021 0.75% 0.50% 1.00% 0.50% 0.25% 7.25% 10.25%
2022 0.75% 0.50% 1.00% 0.50% 0.25% 7.25% 10.25%
2023 0.75% 0.50% 1.00% 0.50% 0.25% 7.25% 10.25%
Notes:

Sources:

California State Board of Equalization
The HdL Companies
Local Rate Levied by State
Effective July 1, 2004, 1/4% of the local rate levied by the State for the City's operations was shifted to the State to create a dedicated revenue source to repay bonds issued under the California Economic Recovery Bond Act. Revenue lost through the shift is backfilled to the City with property tax revenue from the County Education Revenue Augmentation Fund (ERAF).

City of Paramount
Table 6
Direct and Overlapping Sales Tax Rates
Last Ten Calendar Years
159
2023 2014
Air Products Manufacturing Drugs/Chemicals 76 Service Stations Alt Air Fuels Petroleum Product/Equipment Arco AM PM Service Stations Arco AM PM Service Stations Arco AM PM Service Stations Arco AM PM Service Stations Arco AM PM Service Stations Border Tire Automative Supply Stores Chao Petroleum Service Stations Chevron Service Stations Chemco Drugs/Chemicals
Cort Furniture Rental Home Furnishings Chevron Service Stations Del Amo Motorsports of LA Boats/Motorcycles Cort Furniture Rental Home Furnishings Drees Wood Products Contractors Drees Wood Products Contractors Falcon Fuels Petroleum Product/Equipment Falcon Fuels Petroleum Prod/Equipment HD Supply Building Materials GCR Tire Center Automotive Supply Stores Home Depot Building Materials Hardy Roofing Materials Contractors JD Fuel Paramount Service Stations HD Supply Building Materials Northgate Market Grocery Stores Home Depot Building Materials Pacific Gypsum Supply Contractors Jankovich Company Petroleum Prod/Equipment Petro Bras Service Stations Kalmar Heavy Industrial
Premium Windows Contractors Lindsay Lumber Building Materials Rocket 0111 Service Stations Mid Cities Motorsports Boats/Motorcycles Ross Family Apparel Northgate Market Grocery Stores
Sams Roofing Material Building Materials Petro Bras Service Stations Sherwin Williams Paint/Glass/Wallpaper Ross Family Apparel SS Fuel Service Stations Sams Roofing Material Building Materials Stater Bros Grocery Stores Stater Bros Grocery Stores
The Jankovich Company Petroleum Product/Equipment Surface Preparation Solutions Heavy Industrial Walmart Supercenter Discount Dept Stores Walmart Supercenter Discount Dept Stores Percent of Fiscal Year Total 66.43% 62.91%
Period: January 2023 thru December 2023 January 2014 thru December 2014 Notes:

Firms listed alphabetically
Sources:

State of California Board of Equalization
The HdL Companies
City of Paramount
Table 7
Principal Sales Tax Producers
Current Year and Nine Years Ago
160
Fiscal
Year Pension Lease and Total Loan Pension Lease and Total Total Percentage Debt Ended Obligation Purchase Governmental and Notes Obligation Purchase Business-type Primary of Personal Per June 30 Bonds Finance Activities Payable Bonds Finance Activities Government Income Capita 2015 - $ - $ - $ 5,287,159 $ - $ - $ 5,287,159 $ 5,287,159 $ 0.68% 93.74 2016 - - - 4,939,285 - - 4,939,285 4,939,285 0.59% 88.32 2017 - 138,482 138,482 4,774,580 - 90,145 4,864,725 5,003,207 0.59% 89.34 2018 - 203,363 203,363 11,303,775 - 101,313 11,405,088 11,608,451 1.27% 209.17 2019 - 261,439 261,439 11,158,240 - 61,981 11,220,221 11,481,660 1.21% 207.02 2020 - 247,167 247,167 10,860,411 - 93,274 10,953,685 11,200,852 1.14% 202.91 2021 - 190,464 190,464 10,553,135 - 66,724 10,619,859 10,810,323 1.01% 206.00 2022 17,365,000 197,657 17,562,657 10,236,115 - 38,581 10,274,696 27,837,353 2.45% 530.47 2023 13,936,444 366,474 14,302,918 9,909,040 2,058,556 51,124 12,018,720 26,321,638 2.12% 504.46 2024 12,555,531 256,396 12,811,927 20,807,944 1,854,581 24,009 22,686,534 35,498,461 NA NA Notes:

Details regarding the City's outstanding debt can be found in the notes to the financial statements.

NA denote information that is unavailable.

Percentage of Personal Income and Debt Per Capita are calculated using personal income and population as shown on Table 13.

The debt included in the governmental activities columns (with the exception of capital leases) prior to FY2012 was debt of the Paramount Redevelopment Agency. With the elimination of redevelopment in the State of California effective February 1, 2012, that debt was transferred to a private-purpose trust fund. The governmental activities have no other long-term debt.

Governmental Activities Business-type Activities
City of Paramount
Table 8
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
161
Fiscal Year Tax Percent of
Ended Allocation Assessed Per
June 30 Bonds Total Value Capita
2015 - $ - $ 0.00% - $
2016 - - 0.00% -
2017 - - 0.00% -
2018 - - 0.00% -
2019 - - 0.00% -
2020 - - 0.00% -
2021 - - 0.00% -
2022 - - 0.00% -
2023 - - 0.00% -
2024 - - 0.00% -
Notes:

Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

Details regarding the City's outstanding debt can be found in the notes to the financial statements.

The outstanding general bonded debt listed prior to FY2012 was debt of the Paramount Redevelopment Agency. With the elimination of redevelopment in the State of California on February 1, 2012, that debt was transferred to a private-purpose trust fund.

Outstanding General Bonded Debt
City of Paramount
Table 9
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
162
City Assessed Valuation $ 3,038,810,586
Redevelopment Agency Incremental Valuation 2,037,554,497 Total Assessed Valuation 5,076,365,083 $
Estimated
Share of
Percentage Outstanding Overlapping
Applicable (2) Debt 6/30/24 Debt
Overlapping Debt Repaid with Property Taxes:

Metropolitan Water District (1) 0.136% 18,210,000 $ 24,766 $ Cerritos Community College District Debt Service 0.005% 433,766,921 21,688 Compton Community College District Debt Service 18.463% 151,206,912 27,917,332 Compton Unified School District Debt Service 0.611% 221,194,505 1,351,498 Downey Unified School District Debt Service 0.019% 364,199,650 69,198 Paramount Unified School District Debt Service 64.703% 177,304,187 114,721,128 Total overlapping debt repaid with property taxes 1,365,882,175 144,105,610 Total overlapping debt $ 144,105,610 1,365,882,175
City direct debt 14,410,112
Total direct and overlapping debt $ 158,515,722
Notes:

Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. (1) This fund is a portion of a larger agency, and is responsible for debt in areas outside the city.

Sources:

HdL Coren & Cone
This report reflects debt which is being repaid through voter-approved property tax indebtedness. It excludes mortage revenue, tax allocation bonds, interim financing obligations, non-bonded capital lease obligations and certificates of participation, unless provided by the City. (2) The percentage applicable was estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's taxable assessed value.

City of Paramount
Table 10
Direct and Overlapping Governmental Activities Debt
As of June 30, 2023
163
2015 2016 2017 2018 2019
Assessed valuation 3,363,331,783 $ 3,441,673,952 $ 3,635,948,857 $ 3,815,902,453 $ 3,999,245,043 $ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 840,832,946 860,418,488 908,987,214 953,975,613 999,811,261 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 126,124,942 129,062,773 136,348,082 143,096,342 149,971,689 Total net debt applicable to limit:

General obligation bonds - - - - -
Legal debt margin 126,124,942 $ 129,062,773 $ 136,348,082 $ 143,096,342 $ 149,971,689 $ Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0%
Notes:

The City of Paramount has no bonded indebtedness
Source:

Los Angeles County Assessor 2023/2024 Combined Tax Rolls HdL Coren & Cone
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-1982 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

City of Paramount
Table 11
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
164
2020 2021 2022 2023 2024
Assessed valuation 4,341,952,634 $ 4,626,441,163 $ 4,745,115,375 $ 5,076,365,083 $ 5,269,970,741 $ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,085,488,159 1,156,610,291 1,186,278,844 1,269,091,271 1,317,492,685 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 162,823,224 173,491,544 177,941,827 190,363,691 197,623,903 Total net debt applicable to limit:

General obligation bonds - - - - -
Legal debt margin 162,823,224 $ 173,491,544 $ 177,941,827 $ 190,363,691 $ 197,623,903 $ Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0%
Notes:

The City of Paramount has no bonded indebtedness
Source:

Los Angeles County Assessor 2023/2024 Combined Tax Rolls HdL Coren & Cone
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-1982 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

City of Paramount
Table 11
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
Fiscal Year
165
Loan Payable Tax Allocation Bonds
Fiscal Year Less Net Annual
Ended Water Operating Available Debt Tax
June 30 Revenue Expenses Revenue Service Coverage Increment Principal Interest Coverage 2015 7,158,201 $ 6,345,799 $ 812,402 $ 327,066 $ 2.48 - $ - $ - $ - 2016 7,026,709 6,629,599 397,110 326,996 1.21 - - - -
2017 7,861,016 6,599,223 1,261,793 326,923 3.86 - - - - 2018 8,003,264 7,453,498 549,766 327,018 1.68 - - - -
2019 7,805,298 6,783,159 1,022,139 431,415 2.37 - - - - 2020 7,640,124 7,130,558 509,566 643,685 0.79 - - - -
2021 7,822,230 8,740,930 (918,700) 643,535 (1.43) - - - - 2022 8,417,872 9,558,381 (1,140,509) 643,380 (1.77) - - - - 2023 8,355,545 9,203,871 (848,326) 643,220 (1.32) - - - - 2024 9,280,735 9,839,889 (559,154) 643,054 (0.87)
Notes:

Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Water revenue does not include interest.

Operating expenses do not include interest or depreciation expenses.

Source:

City of Paramount
On February 1, 2012, redevelopment agencies in the State of California were eliminated and the assets and liabilities of the Paramount Redevelopment Agency were transferred to a private-purpose trust fund. The FY2012 data for the tax allocation bonds represents the final 7 months of activity for the redevelopment agency. Though the coverage is less than 100%, the debt service payment was made using available fund balance.

Debt Service
City of Paramount
Table 12
Pledged-Revenue Coverage
Last Ten Fiscal Years
166
Per
Calendar Year Personal Capita
Ended Income Personal Unemployment
December 31 Population (1) (in thousands) (2) Income (2) Rate (3) 2014 55,076 788,468 $ 14,316 $ 9.6%
2015 56,400 776,609 13,769 7.9%
2016 55,923 830,147 14,844 6.2%
2017 56,000 849,607 15,171 4.8%
2018 55,497 913,372 16,458 5.1%
2019 55,461 952,036 17,165 4.8%
2020 55,200 985,228 17,848 14.2%
2021 52,477 1,068,985 20,370 10.4%
2022 52,178 1,135,758 21,766 5.3%
2023 52,153 1,239,595 23,768 5.0%
Sources:
(1) California State Department of Finance
(2) 2004-2009: estimates of income based on the last available census; 2010 and later: most recent American Community Survey (3) California Employment Development Department
City of Paramount
Table 13
Demographic and Economic Statistics
Last Ten Calendar Years
167
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
Paramount Unified School District 2,050 17.9% 2,050 16.1% Kindred Hospital / Promise Hospital 445 3.9% 577 4.5%
Wal-Mart Store # 2110 364 3.2% 259 2.0%
Ralphs Grocery #403 362 3.2% 379 3.0%
Weber Metals 342 3.0% 521 4.1%
City of Paramount 356 3.1% 371 2.9%
Carlton Forge Works 244 2.1% 310 2.4%
The Home Depot #1037 207 1.8% 196 1.5%
Affinity Healthcare Center 203 1.8%
Mediland Corp 165 1.4%
Golden State Engineering, Inc. 2.0% 250
Paramount Meadows 1.5% 189
Total 4,738 41.4% 5,102 40.0%
Note:

Blank areas denote information that is unavailable.

Sources:

City of Paramount business license database
Paramount Unified School District Human Resources Department City of Paramount Human Resources Department
2024 2015
City of Paramount
Table 14
Principal Employers
Current Year and Nine Years Ago
168
Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Government 26.7 25.7 25.8 26.2 27.7 28.7 29.1 26.3 27.4 25.2 Community Development 8.6 8.8 9.0 9.7 9.9 9.9 9.0 10.2 10.7 10.2 Public Safety 24.1 27.7 25.2 26.4 23.6 24.6 24.4 22.2 25.0 24.1 Community Services and Recreation 81.1 84.8 88.0 78.0 72.1 69.5 68.4 59.8 57.0 51.6 Public Works 45.6 47.9 44.5 42.8 43.3 43.3 46.5 50.6 51.0 45.6 Total 194.9 186.1 192.5 183.1 176.6 176.0 177.4 169.1 171.1 156.7 Note:

The City of Paramount Water Department is included in other functions.

Source:

City of Paramount
Full-time and Part-time Employees as of June 30
City of Paramount
Table 15
Full-Time Equivalent City Employees by Function
Last Ten Fiscal Years
169
2015 2016 2017 2018 2019
Community Development
Permits 1,260 1,438 1,245 1,315 1,207
Inspections 8,336 9,408 11,617 13,460 13,051
Public Safety:

Arrests 1,670 1,523 1,389 1,264 1,286
Parking Citations Issued 11,187 14,348 13,524 17,723 15,541 Community Services and Recreation:

Number of Recreation Classes 24 29 38 47 33
Number of Facility Rentals 621 683 722 724 580
Public Works:

Street Resurfacing (miles) 1.18 1.25 0.14 0.61 5.98
Water:

Average Daily Consumption 5,710 5,250 5,704 5,872 4,846 (thousands of gallons)
Notes:

Indicators are not available for the general government function.

Community Development data is based on a calendar year.

Blanks indicate that information is not available.

Sources:

Los Angeles Sheriff's Department Management Information System.

Various City departments.

Fiscal Year
Table 16
City of Paramount
Operating Indicators by Function
Last Ten Fiscal Years
170
2020 2021 2022 2023 2024
Community Development
Permits 907 1,135 1,052 780 911
Inspections 9,308 7,904 5,007 3,245 2,980
Public Safety:

Arrests 1,318 1,285 1,080 901 838
Parking Citations Issued 13,238 15,294 18,976 21,856 19,252 Community Services and Recreation:

Number of Recreation Classes 25 18 27 28 20
Number of Facility Rentals 453 57 147 312 366
Public Works:

Street Resurfacing (miles) 0.53 3.72 2.24 5.43 1.50
Water:

Average Daily Consumption 4,530 4,794 4,742 4,500 4,084 (thousands of gallons)
Notes:

Indicators are not available for the general government function.

Community Development data is based on a calendar year.

Blanks indicate that information is not available.

Sources:

Los Angeles Sheriff's Department Management Information System.

Various City departments.

Fiscal Year
City of Paramount
Table 16
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
171
2015 2016 2017 2018 2019
Community Services and Recreation:

Parks 10 11 11 11 11
Community Centers 5 5 5 5 5
Public Works:

Streets (miles) 73 73 73 73 73
Streetlights 3,087 3,087 3,099 3,099 3,099
Traffic Signals 55 55 56 56 56
Water:

Water Mains (miles) 127 127 127 127 127
Number of Service Connections 7,356 7,378 7,398 7,414 7,429 Average Daily Consumption (gallons) 5,709,551 5,249,976 5,703,739 5,871,834 4,845,868 Plant Capacity (gallons per minute) 18,000 18,000 18,000 18,000 18,000 Note:

Indicators are not available for the community development, public safety or general government functions.

Source:

Various City departments.

Last Ten Fiscal Years
Fiscal Year
City of Paramount
Table 17
Capital Asset Statistics by Function
172
2020 2021 2022 2023 2024
Community Services and Recreation:

Parks 11 11 11 11 11
Community Centers 5 5 5 5 5
Public Works:

Streets (miles) 73 73 73 73 73
Streetlights 3,099 3,100 3,099 3,099 3,099
Traffic Signals 56 56 56 56 57
Water:

Water Mains (miles) 127 127 127 127 127
Number of Service Connections 7,374 7,381 7,506 7,129 7,129 Average Daily Consumption (gallons) 4,929,535 4,794,883 4,741,943 4,499,760 4,084,386 Plant Capacity (gallons per minute) 18,000 18,000 18,000 18,000 18,000 Note:

Indicators are not available for the community development, public safety or general government functions.

Source:

Various City departments.

Last Ten Fiscal Years
Fiscal Year
City of Paramount
Table 17
Capital Asset Statistics by Function (Continued)
173
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174
To: Honorable City Council
From: John Moreno, City Manager
By: Yecenia Guillen, Community Services
Director
Date: January 28, 2025
SUBJECT: AMENDMENT NO. 1 TO THE AGREEMENT WITH PREMIER AQUATIC

SERVICES, LLC

BACKGROUND
In January 2024, the City approved an agreement with Premier Aquatic Services, LLC (Premier) to provide all aquatics programs for the City at Paramount Pool for one (1) year.

The agreement included the organization and implementation of all swim lessons, recreation swim, and water aerobics programs offered to the community. Additionally, the agreement included all staffing of certified and fully trained Lifeguards, customer service front counter personnel, and an on-site Aquatics Director to oversee daily operations of the programming and facility.

Currently, Premier has concluded a successful year under the agreement. Under Premier’s contract, the City saw an increase in the amount of swim lessons offered, the number of participants who attended recreation swim, and an increase in service hours per week. City staff and the community have been extremely satisfied with Premier’s services. Staff and the contractor, now wish to exercise the available option in the agreement terms that would extend the agreement for an additional three (3) years through January 31, 2028, providing the same level of service as previously offered.

DISCUSSION
There are two main components of a municipal swim program. This includes swim lessons, and recreation swim. Prior to 2018, the City provided the staffing for both components of the program. To reduce costs, improve liability protection, and place the instruction under more professional aquatics supervision, it was recommended and approved by the City Council in March 2018, to transition the City’s swim program to a contracted service provider that would handle all aspects of the programming and operations.

In 2023 after review of the initial service provider, it was recommended that the City research other available providers to offer the program. A Request for Proposals (RFP) was published on December 4, 2023, seeking a new service provider to offer the City’s aquatics programming.

Agenda Report January 28, 2025
AMENDMENT NO 1 – PREMIER AQUATIC SERVICES, LLC Page 2
Following review of the submitted proposal, Premier was selected as the provider to offer the City’s Aquatics program. In January 2024, Premier began operation of the program and handled all aspects from programing to staffing needs.

Premier has an impressive reputation for offering quality swim programs, exceptional customer service, and are very responsive. Premier has extensive experience in providing aquatics programming. They have provided services to various Cities, including Aliso Viejo, Laguna Nigel, Mission Viejo and Murrieta. Additionally, they provide services at two (2) hotels, 19 Homeowner Associations across California and Utah, and lifeguarding and recreation swim for community events at the military bases located at Camp Pendelton, Yuma, Twenty-Nine Palms, and most recently Paramount.

Given Premier’s excellent performance, Staff recommends that the City Council approve a multi-year amendment (Amendment No. 1) with Premier to continue services through January 31, 2028, with an option to extend the agreement. Should the City and contractor choose to extend the agreement after the conclusion of the three (3) years, one term extension for a period of two (2) years will be available, based on contractor performance and at the City’s discretion.

Amendment No. 1 to the agreement with Premier will go into effect on January 29, 2025, and continue for a period of three (3) years, through January 31, 2028. The cost for services related to Year 2, Year 3, and Year 4 are outlined below. It is important to note that staff rates for years 2026 and 2027 will be adjusted should minimum wage increase and based on the Consumer Price Index (CPI), at a maximum of three percent (3%).

Year 2 – 2025
Position Hours Fees
Lifeguard 5,085.50 $ 170,364.25
Front Desk 1,673.00 $ 54,372.50
Aquatics Director Full Time $ 80,000.00
Management Fee N/A $ 25,000.00
Total 6,758.50 $ 329,736.75
Year 3 – 2026
Position Hours Fees
Lifeguard 5,104.50 $ 171,000.75
Front Desk 1,684.00 $ 54,730.00
Aquatics Director Full Time $ 83,200.00
Management Fee N/A $ 25,000.00
Total 6,788.50 $ 333,930.75
Agenda Report January 28, 2025
AMENDMENT NO 1 – PREMIER AQUATIC SERVICES, LLC Page 3
Year 4 – 2027
Position Hours Fees
Lifeguard 5,105.00 $ 171,017.50
Front Desk 1,673.00 $ 54,372.50
Aquatics Director Full Time $ 86,528.00
Management Fee N/A $ 25,000.00
Total 6,778.00 $ 336,918.00

FISCAL IMPACT
The cost of service for Year 1 in the amount of $300,700 was included in the FY 2024-25 Adopted Budget. Should the City Council approve Amendment No. 1, an additional appropriation of $12,100 is needed to account for the contract increase that impacts the current year budget for the remaining months of February through June 2025. The costs of services for the years 2026 and 2027 and any future extensions will be appropriated accordingly in each year’s annual budget process.

VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 2: Community Health - Provide diverse recreational and cultural amenities that support healthy lifestyles and a sense of community.

RECOMMENDED ACTION
1) Appropriate an additional $12,100 from the available General Fund to account for the contract increase that impacts the current FY 2024-25 budget year; and 2) Approve and authorize the City Manager to execute Amendment No. 1 to the agreement with Premier Aquatic Services LLC to continue providing all aquatic programs, including swim lessons, recreation swim, and water aerobics, for the City at Paramount Park Pool for a total amount of $1,000,585.50 for the next three years from the period January 29, 2025 through January 31, 2028 (2025-2028).
1 FIRST AMENDMENT TO THE SERVICE AGREEMENT BY AND BETWEEN THE CITY

OF PARAMOUNT AND PREMIER AQUATIC SERVICES LLC FOR AQUATIC

SERVICES
THIS FIRST AMENDMENT (“AMENDMENT”) is made and entered into this 29th day of January of 2025 between the City of Paramount, a municipal corporation in Los Angeles County, California, (hereinafter “CITY”) and Premier Aquatic Services LLC with its primary office located at 6 Journey, #200, Aliso Viejo, CA (hereinafter “VENDOR”) (collectively, “the Parties”), amending that certain service agreement between VENDOR and CITY approved by City Council January 14, 2025 and dated January 23, 2024 for aquatic services (“AGREEMENT”).

RECITALS
WHEREAS, CITY and VENDOR entered into the AGREEMENT whereby VENDOR provides year-round aquatics programming services to the CITY, including hiring and training all lifeguard personnel, providing an on-site manager, and providing all programming at the Paramount Aquatic Center and Paramount Park Pool, as set forth in Exhibit A of the AGREEMENT; and
WHEREAS, the AGREEMENT’s term was for one year, with an expiration date of January 23, 2025; and
WHEREAS, CITY and VENDOR each desire to amend the AGREEMENT to extend its term for a period of three (3) years beginning on January 23, 2025 and concluding on January 31, 2028, with an option to extend the agreement for an additional two (2) years based on VENDOR performance and at the CITY’s discretion, and to adjust VENDOR’s compensation.

NOW, THEREFORE, AND IN CONSIDERATION OF THE FOREGOING AND OF

THE MUTUAL COVENANTS AND PROMISES HEREIN SET FORTH, THE PARTIES AGREE TO AMEND THE AGREEMENT AS FOLLOWS:

A. TERM
Section II.B. of the AGREEMENT is hereby amended to read as follows:
“B. TERM. This AGREEMENT shall commence as of the 23rd day of January ,2024 and shall remain in full force and effect through and including January 31, 2028, unless sooner terminated as provided in Section II.P of the AGREEMENT.

CITY, at its sole option, may elect to extend the AMENDED TERM of this AGREEMENT for an additional two (2) years by the City Manager providing written notice to VENDOR at least one (1) month prior to the then existing term. At the time if such extensions, this AGREEMENT shall be amended as to the changes, if any, in terms, responsibilities and compensation as determined in writing between 2 the CITY and VENDOR, provided that any compensation shall not exceed the total not-to-exceed amount set forth in Section II.D.”
B. COMPENSATION
Section II.D. of the AGREEMENT is hereby amended to read as follows:
“D. COMPENSATION. During the term of this AGREEMENT, the CITY shall compensate the CONTRACTOR for the services described as detailed in Exhibit “A,” attached to the AMENDMENT and incorporated herein by reference. The compensation for years 2026 and 2027, as set forth in Exhibit “A” are intended to be estimates. Beginning January 1, 2026, the compensation rates shall be increased annually on each January 1 by the percentage increase in the Department of Labor’s Consumer Price Index for the Los Angeles-Long BeachAnaheim Area (All Urban Consumers) from November of the previous calendar year to November of the year prior to which the adjustment is to occur (“CPI”), not to exceed a total of 3 percent. Should the Bureau of Labor Statistic discontinue the publication of the CPI, or publish the same less frequently or alter the same in some other manner, then the most nearly comparable index or procedure as reasonably selected by City shall be substituted therefor. In addition to the CPI increase, such compensation may also be increased by an amount equal to the percentage increase in the State of California’s minimum wage in each of the years 2026 and 2027. Under no circumstances will CITY compensation VENDOR more than $1,000,585.50 during the term of the AGREEMENT between January 23, 2025, and January 31, 2028.

VENDOR shall prepare and present detailed statements for services rendered to CITY for the month preceding the statement, indicating each discrete task performed by the VENDOR. Statements are due and payable upon approval by CITY for satisfactory services then performed.”
C. NON-APPROPRIATION OF FUNDS
A new Section VI is hereby added to the AGREEMENT to read as follows:
“Payments to be made to VENDOR by CITY for any services performed within the current fiscal year are within the current fiscal budget and within an available, unexhausted fund. In the event that CITY does not appropriate sufficient funds for payment of VENDOR’s services beyond the current fiscal year, this AGREEMENT shall cover payment for VENDOR’s services only to the conclusion of the last fiscal year in which CITY appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year.”
D. Exhibit A of this AMENDMENT is hereby incorporated into the AGREEMENT and shall supersede and replace all pricing in the original AGREEMENT. 3 E. All other terms of the AGREEMENT, except as amended herein, shall remain in full force and effect throughout the term.

IN WITNESS WHEREOF, the City and VENDOR have executed this AMENDMENT as of the date first herein above set forth.
- SIGNATURES ON FOLLOWING PAGE –
4 CITY OF PARAMOUNT PREMIER AQUATIC SERVICES LLC
By: ___________________________ By: ___________________________ Annette C. Delgadillo, Mayor Dan Berzansky, Owner/President ATTEST:

By: ___________________________
Heidi Luce, City Clerk
APPROVED AS TO FORM:

By: _______________________________
Nicholas Ghirelli, City Attorney
5 EXHIBIT A

COMPENSATION
2025
Position Hours Fees
Lifeguard 5,085.50 $ 170,364.25
Front Desk 1,673.00 $ 54,372.50
Aquatics Director Full Time $ 80,000.00
Management Fee N/A $ 25,000.00
Total 6,758.50 $ 329,736.75
2026
Position Hours Fees
Lifeguard 5,104.50 $ 171,000.75
Front Desk 1,684.00 $ 54,730.00
Aquatics Director Full Time $ 83,200.00
Management Fee N/A $ 25,000.00
Total 6,788.50 $ 333,930.75
2027
Position Hours Fees
Lifeguard 5,105.00 $ 171,017.50
Front Desk 1,673.00 $ 54,372.50
Aquatics Director Full Time $ 86,528.00
Management Fee N/A $ 25,000.00
Total 6,778.00 $ 336,918.00

To: Honorable City Council
From: John Moreno, City Manager
By: Adriana Figueroa, Public Works Director
Date: January 28, 2025
SUBJECT: PROGRESS PARK PLAZA EXTERIOR IMPROVEMENT PROJECT (CIP NO. 9352) – APPROVAL OF PLANS AND SPECIFICATIONS, AWARD

OF CONTRACT, AND FINDING THE PROJECT EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO THE
CLASS 1 CATEGORICAL EXEMPTION

BACKGROUND
The City received grant funding from former Assemblymember Anthony Rendon to further enhance Progress Park Plaza, given its prime location for City programming, community events, and meetings. This facility is also available for rental to the public for private parties and events. In Fiscal Year 2021, the facility received significant interior improvements. To continue efforts with improving the facility space, the City Council approved design work for the exterior space. Exterior improvements include new concrete paving, planters, outdoor overhead shade structures, landscaping, new tile, paint, and other amenities.

DISCUSSION
On Thursday, November 14, 2024, the City published the Request for Proposals in the Paramount Journal and on the City’s website.

On Thursday, December 19, 2024, the Director of Public Works opened and examined the bids for the Progress Park Plaza Exterior Improvement Project. The bids were opened at 11:00 AM at the City Hall Chambers.

Five bids were initially received and one contractor requested to have their bid withdrawn.

The remaining four bids were analyzed for completeness of the required documentation, licensing, Department of Industrial Relations registrations, and other requirements. Upon review of the proposals received, the apparent low, responsible bid was deemed to be ARC Construction, Inc., in the amount of $1,646,401.22 for the original project scope, plus Line 98 as listed in the Additive Alternative.

Agenda Report January 28, 2025
AWARD OF CONTRACT - CITY PROJECT NO. 9352 Page 2
Cost
The following is a breakdown of estimated project construction costs:

Project: $ 1,646,401.22
Contingency (10%): $ 164,640.12
Total: $ 1,811,041.34
Plans and Specifications
Approval of the plans and specifications for design criteria is in adherence to Government Code requirements and confirms that the plans have been prepared in conformance with applicable standards.

California Environmental Quality Act (CEQA) Analysis
This project is exempt from the California Environmental Quality Act (CEQA) pursuant to the Class 1 Categorical Exemption as it involves exterior remodeling of an existing structure without any significant expansion of the existing use.

FISCAL IMPACT
The City was awarded $1.85 million in grant funding from former Assemblymember Anthony Rendon, in which the City had initially appropriated $1.6 million specifically for the Progress Park Exterior Improvement Project in the Fiscal Year 2024-25 Capital Improvement Project (CIP No. 9352) budget. Staff will request that the remaining grant amount be allocated towards the Progress Park project as part of the midyear adjustment process, which is consistent with grant guidelines.

VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 1: Safe Community - Provide a safe place to live, work, and visit. 5: Attractive and Well-Maintained Infrastructure - Develop and maintain City-owned infrastructure, parks, facilities, and amenities that enhance quality of life and the attractiveness of the community.

RECOMMENDED ACTION
1) Approve the plans and specifications as detailed in the bid documents, with respect to design criteria; 2) Find the project exempt from CEQA; and 3) Award the contract for the Progress Park exterior improvement project to ARC Construction, Inc., La Crescenta, California in the amount of $1,646,401.22, and authorize the Mayor or her designee to execute the agreement.

SPC23-23 D-1
SECTION “D”

CITY OF PARAMOUNT

CONTRACT AGREEMENT
FOR

PROGRESS PLAZA EXTERIOR IMPROVEMENTS
PROJECT NO. 9352
This contract agreement is made and entered into for the above-stated project this day of , 20 , by and between the City of Paramount, as
AGENCY and ,as Contractor.

WITNESSETH that AGENCY and Contractor have mutually agreed as follows:

ARTICLE I
The Contract Documents for the aforesaid project shall consist of the Notice Inviting Sealed Bids, Instructions to Bidders, Proposal, General Specifications, Standard Specifications, Special Provisions, Plans, and all referenced specifications, details, standard drawings, and appendices; together with this contract agreement and all required bonds, insurance certificates, permits, notices, and affidavits and also including any and all addenda or supplemental agreements clarifying, amending, or extending the work contemplated as may be required to ensure its completion in an acceptable manner.

All of the provisions of said Contract Documents are made a part hereof as though fully set forth herein.

ARTICLE II
For and in consideration of the payments and agreements to be made and performed by AGENCY, Contractor agrees to furnish all materials and perform all work required for the above-stated project and to fulfill all other obligations as set forth in the aforesaid contract documents.

ARTICLE III
Contractor agrees to receive and accept the prices set forth in the Proposal as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder. Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the aforesaid contract documents and also including those arising from actions of the elements, unforeseen difficulties, or obstructions encountered in the prosecution of the work and also including those arising from actions of the elements, unforeseen difficulties, or obstructions encountered in the 28th
January 25
ARC Construction, Inc.

SPC23-23 D-2
prosecution of the work, suspension, or discontinuance of the work and all other unknowns or risks of any description connected with the work.

ARTICLE IV
AGENCY hereby promises and agrees to employ and does hereby employ, Contractor to provide the materials, do the work and fulfill the obligations according to the terms and conditions herein contained and referred to, for the prices aforesaid and hereby con tracts to pay the same at the time, in the manner and upon the conditions set forth in the contract documents.

ARTICLE V
Contractor acknowledges the provisions of the State Labor Code requiring every employer to be insured against liability for workers’ compensation or to undertake selfinsurance in accordance with the provisions of that code and certifies compliance with such provisions. Contractor further acknowledges the provisions of the State Labor Code requiring every employer to pay at least the minimum prevailing rate of per diem wages for each craft classification or type of workman needed to execute this contract as determined by the Director of Labor Relations of the State of California.

ARTICLE VI
Contractor agrees to indemnify and hold harmless AGENCY and all of its officers and agents from any claims, demands, or causes of action including related expenses, attorney’s fees, and costs based on, arising out of, or in any way related to the work undertaken by Contractor hereunder. In the event the insurance coverage is on a claims made basis the Contractor shall indemnify and hold harmless the AGENCY and all of its officers and agents from any and all claims, demands, or causes of action that arise after the expiration of the Contractor’s current policy or after the service contract has ended, for any occurrences arising out of or any way related to the work undertaken by the Contractor. The liability insurance coverage values shall be:

Insurance Coverage Requirements Limit Requirements
Comprehensive General Liability $1,500,000
Product/Completion Operations $1,500,000
Contractual General Liability $1,500,000
Comprehensive Automobile Liability $1,500,000
A combined single-limit policy with aggregate limits in the amount of $3,000,000 will be considered equivalent to the required minimum limits. The issuer shall be an “admitted surety insurer” duly authorized to transact business under the laws of the State of California.

SPC23-23 D-3
Acceptable insurance coverage shall be placed with carriers admitted to write insurance in California with a rating of A:VIII by A.M. Best & Co. Any deviation from this rule shall require specific approval in writing from the AGENCY.

Insurance shall name the City of Paramount, its officers, agents, and employees as additional insured by endorsement of the Contractor’s policy. A copy of the endorsement, showing policy limits, shall be provided to the AGENCY on or before signing this contract.

ARTICLE VII
Contractor affirms that the signatures, titles, and seals set forth hereinafter the execution of this contract agreement represent all individuals, firm members, partners, joint venturers, and/or corporate officers having a principal interest herein.

ARTICLE VIII

DELETED

ARTICLE IX
Records and Audits. The Contractor shall maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to the contract and such other records as may be deemed necessary by the AGENCY to assure proper accounting for all project funds, both federal and non -federal shares. These records will be made available for audit purposes to the AGENCY or any authorized representative and will be retained for 5 years after the expiration of this Contract unless permission to destroy them is granted by the AGENCY.

ARTICLE X
False Claims and Debarment Procedures. The AGENCY hereby gives notice to Contractor that Chapter 34 of the Paramount Municipal Code dealing with false claims of contractors provides for an administrative debarment action for submitting a false claim subjecting Contractor to a potential five (5) year debarment upon finding that Contractor knowingly submitted a false claim as further set forth in Chapter 34. Failure to abide by the provisions of Chapter 34 may lead to a disqualification of the Contractor as an irresponsible bidder and resultant prohibition of Contractor, from bidding as a Contractor, Subcontractor or Consultant for a period up to five (5) years in the City of Paramount.

SPC23-23 D-4
IN WITNESS WHEREOF, the parties hereto for themselves, their heirs, executors, administrators, successors, and assigns do hereby agree to the full performance of the covenants herein contained and have caused this contract agreement to be executed in duplicate by setting hereunto their names, titles, hands, and seals this ________ day of __________________, 20___.

Contractor:
(Signature)
Name and Title (Printed)
Contractor’s License No.

Agency Business License No.

Federal Tax Identification No.

Note: Contractor signature must be acknowledged before a Notary Public, and evidence of the authority of any person signing as attorney-in-fact must be attached.

AGENCY:

Mayor of the City of Paramount
Attested:

City Clerk of the City of Paramount
Date
Approved
as to form:

City Attorney of the City of Paramount
Date
SPC23-23 D-5

FAITHFUL PERFORMANCE BOND
FOR

PROGRESS PLAZA EXTERIOR IMPROVEMENTS
PROJECT NO. 9352
KNOW ALL MEN BY THESE PRESENTS that as
CONTRACTOR and ,
a corporation organized and existing under the laws of the State of , and duly authorized to transact business under the laws of the State of California, as SURETY, are held and firmly bound unto the City of Paramount, as AGENCY, in the penal sum of
Dollars ($ ), which is 100 percent of the total contract amount for the above-stated project, for the payment of which sum, CONTRACTOR and SURETY agree to be bound, jointly and severally, firmly by these presents.

THE CONDITIONS OF THIS OBLIGATION ARE SUCH that, whereas CONTRACTOR has been awarded and is about to enter into the annexed Contract Agreement with AGENCY for the above-stated project, if CONTRACTOR faithfully performs and fulfills all obligations under the contract documents in the manner and time specified therein, then this obligation shall be null and void, otherwise it shall remain in full force and effect in favor of AGENCY; provided that any alterations in the obligations or time for completion made pursuant to the terms of the Contract Documents shall not in any way release either CONTRACTOR or SURETY, and notice of such alterations is hereby waived by SURETY.

IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Bidder and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.

Dated:

BIDDER: Name:

Address:

By:
(Signature)
Type Name and Title
SURETY: Name:

Address:

By:
(Signature)
Type Name and Title:

Note: This bond must be executed in duplicate and dated, all signatures must be acknowledged before a Notary Public, and evidence of the authority of any person signing as attorney-in-fact must be attached.

SPC23-23 D-6

MATERIAL AND LABOR BOND
FOR

PROGRESS PLAZA EXTERIOR IMPROVEMENTS
PROJECT NO. 9352
KNOW ALL MEN BY THESE PRESENTS that ___________________________, as CONTRACTOR, and __________________________________________________, a corporation organized and existing under the laws of the State of
, and duly authorized to transact business under the laws of the State of California, as SURETY, are held and firmly bound unto the City of Paramount, as AGENCY, in the penal sum of _______________________________________ Dollars ($_______________), which is 100 percent of the total contract amount for the above-stated project, for payment of which sum, CONTRACTOR and SURETY agree to be bound, jointly and severally, firmly by these presents.

THE CONDITIONS OF THIS OBLIGATION ARE SUCH that, whereas CONTRACTOR has been awarded and is about to enter into the annexed Contract Agreement with AGENCY for the above-stated project, if CONTRACTOR or any subcontractor fails to pay for any labor or material of any kind used in the performance of the work to be done under said contract, or fails to submit amounts due under the State Unemployment Insurance Act with respect to said labor, SURETY will pay for the same in an amount not exceeding the sum set forth above, which amount shall inure to the benefit of all persons entitled to file claims under the State Code of Civil Procedures; provided that any alterations in the work to be done, materials to be furnished, or time for comple tion made pursuant to the terms of the contract documents shall not in any way release either CONTRACTOR or SURETY, and notice of said alterations is hereby waived by SURETY.

IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Bidder and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.

Dated:

BIDDER: Name:

Address:

By:
(Signature)
Type Name and Title
SURETY: Name:

Address:

By:
(Signature)
Type Name and Title:

Note: This bond must be executed in duplicate and dated, all signatures must be acknowledged before a Notary Public, and evidence of the authority of any person signing as attorney-in-fact must be attached.

To: Honorable City Council
From: John Moreno, City Manager
By: Grissel Chavez, Assistant City Manager
Andres Gonzalez, Management Analyst
Date: January 28, 2025
SUBJECT: 2025 LEGISLATIVE PLATFORM

BACKGROUND
In January 2021, the City Council adopted the City of Paramount’s first Legislative Platform, providing a framework for the City when taking a position on legislative and regional issues that affect the City. The Legislative Platform is based on the City’s Vision, Mission, Values, and Strategic Outcomes established by the City Council.

The City’s Legislative Platform will continue to serve as a valuable resource to enable Paramount’s voice to be heard before a vote on legislation is taken in Sacramento or Washington, D.C. Furthermore, it provides an effective way to quickly and efficiently turn around letters of support or opposition on pieces of legislation while clearly capturing the collective input and values of all members of the City Council.

When staff or the City Council receives information on legislative or regional issues that warrant taking a position, staff refers to the Legislative Platform to confirm that the issue aligns with the City’s goals and objectives. Staff then drafts a letter that is reviewed and signed by the Mayor. Copies of the letters are posted on the City website regularly. The Legislative Platform should be reviewed annually to update the City’s legislative priorities.

DISCUSSION
In 2024, staff used the Legislative Platform to take positions on 39 legislative initiatives.

A complete list of the positions adopted by the City Council is included in Attachment 1.

All position letters, whether in support of or in opposition to legislation, were consistent with the City's 2024 Legislative Platform. This platform served as a crucial reference that enabled City staff to quickly respond to legislative matters, especially those requiring urgent attention. Additionally, staff maintains a Legislative Advocacy page on the City's website. This page allows residents to view the Legislative Platform, read past position letters, and find information on how to submit their own letters to our legislators.

Agenda Report January 28, 2025
RESOLUTION NO. 25:001 Page 2
2025 Legislative Platform
For the development of the 2025 Legislative Platform (Exhibit A), staff consulted with City Departments along with the League of California Cities. Based on their feedback, we are enhancing our Housing and Land Use section with five new initiatives:
o Oppose legislation penalizing local governments for noncompliance with housing elements if RHNA units are not constructed or programs are not fully implemented. o Support legislation authorizing local governments to receive RHNA credit for converting above-moderate income units to moderate or below moderate-income units.
o Support legislation providing flexibility in the RHNA process for successful completion of local government housing elements.
o Oppose ADU legislation that preempts local open space requirements. o Oppose unrealistic timeframe mandates for housing construction.

FISCAL IMPACT
None.

VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 1: Safe Community - Provide a safe place to live, work, and visit. 2: Community Health - Provide diverse recreational and cultural amenities that support healthy lifestyles and a sense of community. 3:

Economic Health - Support a healthy, sustainable economy reflecting community values. 4: Environmental Health - Promote, protect, and enhance a healthy, sustainably built, and natural environment. 5: Attractive and Well-Maintained Infrastructure - Develop and maintain City-owned infrastructure, parks, facilities, and amenities that enhance quality of life and the attractiveness of the community. 6: Efficient, Effective, and Fiscally Responsible - Deliver an efficient and effective City government in a fiscally responsible, transparent and collaborative manner.

RECOMMENDED ACTION
Adopt Resolution No. 25:001 approving the 2025 Legislative Platform. 2024 Position Letters

N/A LONG BEACH-EAST LOS ANGELES CORRIDOR

MOBILITY INVESTMENT PLAN
Support N/A
AB 1679 (Santiago) TRANSACTIONS AND USE TAXES: LAC HOMELESS Concern Passed AB 504 (Reyes) PUBLIC EMPLOYEES LABOR RELATIONS Oppose Pending SB 329 (Dodd) CITY COUNCILMEMBER COMPENSATION Support Passed AB 262 (Holden) CHILDREN’S CAMPS SAFETY REGULATIONS Support Pending SB 326 & AB 531
(Eggman/Irwin) BEHAVIORAL HEALTH REFORM Support Passed

CONCERN REGARDINGMIDDLE MILE NETWORK
MAP Concern Pending
METRO RECONNECTING COMMUNITIES Support Pending
FFA LAST MILE GRANT APPLICATION Support Pending
AB 1657 (Wicks) AFFORDABLE HOUSING BOND ACT OF 2024 Support Pending SB 4 (Winer) AFFORDABLE HOUSING ON FAITH LANDS ACT Oppose Pending

SIGNFICANT CONCERN FOR FEDERAL FUNDING
ACCOUNT PRIORITY AREAS MAP Concern N/A
AB 742 (Jackson) POLICE CANINES, AS AMENDED Oppose Failed HR 1525 (Congressional
Research Service)

THE FIFTH AMENDMENT INTEGRITY RESTORATION
(FAIR) ACT OF 2023 Oppose Pending
SB 50 (Portantino) VEHICLES: ENFORCEMENT Oppose Pending AB 262 (Holden) AS AMENDED – CHILDREN’S CAMPS: SAFETY AND REGULATION Support Pending

FEDERAL FUNDING ACCOUNT LAST MILE GRANT
APPLICATION Support N/A

SUPPORT FOR COMMUNITY PROJECTS
PROPOSED BY THE CITY OF PARAMOUNT Support N/A
AB 1772 (Mathis, Ramos,
Valencia) THEFT Support Pending
AB 2943 (Zbur) CRIMES: SHOPLIFTING Support Pending
AB 1802 (Jones-Swayer), AB
1972 (Alanis), SB 982 (Wahab) ORGANIZED RETAIL THEFT LEGISLATION Support Pending AB 1845 (Alanis), SB 1144
(Skinner), SB 1381 (McGuire),
SB 1416 (Newman)

RESELLERS AND FENCING OF STOLEN PROPERTY
LEGISLATION Support Pending
AB 1779(Irwin), AB 1794
(McCarty)
RETAIL THEFT AGGREGATION AND MULTIJURISDICTIONAL LEGISLATION Support Pending AB 1960 (Soria), AB 1990
(Carrillo), AB 2814 (Low), AB
3209 (Berman), SB 1242 (Min)

RETAIL THEFT ENFORCEMENT AND INCREASED
PENALTIES LEGISLATION Support Pending
SB 1037 (Wiener) PLANNING AND ZONING: HOUSING ELEMENT:

ENFORCEMENT Oppose Pending
AB 3093 (Ward) LAND USE: HOUSING ELEMENT: STREAMLINED
MULTIFAMILY HOUSING. Oppose Pending
AB 2557 (Ortega)
LOCAL AGENCIES: CONTRACTS FOR SPECIAL
SERVICES AND TEMPORARY HELP:

PERFORMANCE REPORTS
Oppose Pending
N/A

TRANSIT AND INTERCITY RAIL CAPITAL PROGRAM
GRANT APPLICATION FOR LA METRO’S

SOUTHEAST GATEWAY LINE PROJECT
Support N/A
AB 3093 LAND USE: HOUSING ELEMENT: STREAMLINED
MULTIFAMILY HOUSING Oppose N/A
AB 2557
LOCAL AGENCIES: CONTRACTS FOR SPECIAL
SERVICES TEMPORARY HELP: PERFORMANCE

REPORTS
Oppose N/A
AB 1082 VEHICLES: ABANDONMENT REMOVAL Oppose N/A
AB 98 PLANNING AND ZONING: LOGISTIC USE: TRUCK
ROUTES
VETO
Request N/A
AB 2561 LOCAL PUBLIC EMPLOYEES: VACANT POSITIONS VETO
Request N/A
SB 1037 PLANNING AND ZONING: HOUSING ELEMENT:

ENFORCEMENT
VETO
Request N/A
AB 2574 (Valencia) Alcoholism or Drug Abuse Recovery or Treatment Facilities. Request of Signature Support N/A
AB 2330 Holden)
Endangered Species: Wildfire preparedness
activities
Request for Signature
Support N/A
AB 2081 (Davies)
Substance Abuse: Recovery and Treatment
Programs.

Request for Signature
Support N/A
Support for the Los Angeles County Metropolitan
Transportation Authority I-710 Planning Study:

Reconnecting the Long Beach-East LA Corridor
Communities Plan
Support N/A
Planning Assistance to the States Request – Trout
Unlimited
Support N/A
Los Angeles County Sheriff’s Department - Penal &
Vehicle Code Enforcement
Support N/A

CITY OF PARAMOUNT

LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION NO. 25:001

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARAMOUNT APPROVING THE CITY OF PARAMOUNT 2025 LEGISLATIVE

PLATFORM
WHEREAS, the City of Paramount (“City”) is frequently requested by partner agencies and organizations to support or oppose proposed legislation; and WHEREAS, the City Council recognizes the need for an active legislative platform to protect the City’s legislative interests in the region, Sacramento, and Washington, D.C.; and
WHEREAS, the City Council directed City staff to develop a process to be implemented that would both provide an effective way for City staff to efficiently respond to legislative position requests, and also enable the City Council to express their positions on proposed legislation by adopting a unified platform which would involve a broad range of legislative issues that reflects their priorities and values for the City; and WHEREAS, the Legislative Platform shall be reviewed by the City Council and adopted annually at the start of each Legislative session to ensure the Legislative Platform reflects the priorities of the City Council.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARAMOUNT AS FOLLOWS:

SECTION 1. The above recitations are true and correct.

SECTION 2. The City Council approves the City of Paramount 2025 Legislative Platform attached hereto as Exhibit “A” and incorporated herein by reference as if fully set forth. This Legislative Platform shall be implemented on January 28, 2025.

SECTION 3. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, and ADOPTED by the City Council of the City of Paramount this 28th day of January 2025.
__________________________
Annette C. Delgadillo, Mayor
ATTEST:

Heidi Luce, City Clerk
Exhibit A
2025 Legislative Platform
Exhibit A
Annette C. Delgadillo
Mayor
Peggy Lemons
Vice Mayor
2025 Legislative Platform
Rev. January 2025
Brenda Olmos
Councilmember
Vilma Cuellar
Stallings
Councilmember
Isabel Aguayo
Councilmember
Mission Statement
The City of Paramount’s
Legislative Platform establishes
a framework for the City’s
collective principles on matters
of legislation and regional issues
similar in nature.

The Paramount City Council
recognizes the need for an
active legislative program to
protect the City’s interests in the
region, Sacramento, and
Washington, D.C. This
document outlines the City’s
position on legislative matters.

Purpose
On September 1, 2020, the City Council approved implementation of a Legislative Platform that streamlines a process for staff to follow when the City receives a request to take a position on legislative matters. Adopted annually by the City Council, the Legislative Platform is the foundation of a focused advocacy strategy and serves as a reference guide for legislative positions and objectives. The purpose of the Legislative Platform is to give clear direction to staff when determining the City’s position on legislation. The Legislative Platform is developed and maintained by using the goals and objectives of the City Council, and incorporates the City’s Vision, Mission, Values, and Strategic Outcomes. It is based on input from the City Council and staff, as well as local legislative staff and the City’s legislative advocates.

Implementation
The City Council will review and adopt the Legislative
platform at the start of each legislative session and revisit it mid-year. Federal and State legislation that is consistent with the Legislative Platform may be supported by the City.

Federal and State legislation that is inconsistent with the Legislative Platform may be opposed by the City. When
legislation is supported or opposed by the Legislative
Platform, City staff will prepare position letters to be approved by the Mayor. Legislation that is not addressed in the Legislative Platform may require further direction from the City Council. Legislative priorities may only address issues directly related to or impacting the provision of municipal services.

The Legislative Platform… [uses] the goals and objectives of the City Council, and incorporates the City’s Vision, Mission, Values, and Strategic Outcomes.

Partner Organizations
Generally, the City supports the legislative positions of the City’s partner organizations. However, there may be some instances where the City does not support a certain legislative position by a partner organization. When this occurs, City staff will use the principles and values in this Legislative Platform to guide legislative position. The following are partner organizations the City generally supports:

Federal:

American Planning Association
American Public Works Association
American Water Works Association
National Recreation and Parks Association
National League of Cities
U.S. Conference of Mayors
State:

Association of California Water Agencies
California Association of Local Economic Development
California Building Officials
California Contract Cities Association
California Joint Powers Insurance Authority
California Municipal Revenue and Tax Association
California Municipal Utilities Association
California Society of Municipal Finance Officers
California Stormwater Quality Association
California Park & Recreation Society
City Clerks Association of California
League of California Cities
Regional:

Gateway Cities Council of Governments
Gateway Water Management Authority
The Los Angeles Homeless Services Authority
Los Angeles County Sheriff’s and Fire Departments
Metropolitan Transportation Authority
Southern California Chapter of National Association of Telecommunications Officers and Advisors Southeast Los Angeles County Workforce Development Board Southeast Water Coalition
Southern California Association of Governments
Greater Los Angeles County Vector Control District
Guiding Principles
The City of Paramount will take positions and advocate based on the following principles:

1. Preserve Local Control
• Support measures that preserve
and protect the City’s powers and
duties to enact legislation and
policy direction concerning local
affairs, and oppose legislation that
preempts local authority.
• Support measures that preserve
and enhance authority and
accountability for revenues raised
and services provided.

2. Promote Fiscal Stability
• Support measures that promote fiscal stability, predictability, and financial independence. • Support measures that preserve the City’s revenue base and local control over local government budgeting, recognizing that economic cost is a determinate in considering the merits and/or impacts of any proposed legislation or regulation. • Support measures that make cities more independent from the County, State, and Federal Governments for financial stability, such as mandated costs with no guarantee of local reimbursement or offsetting benefits. Oppose measures that shift local funds to the County, State or Federal Governments, without offsetting benefits.

3. Promote Economic Development
• Support legislation and regulation reforms that provide the City with the necessary tools to continue to grow its economy and enhance economic development efforts. • Support measures that provide the City with the capability to attract and retain businesses, as well as encourage current businesses to expand and retain jobs locally.

4. Funding Opportunities
• Support opportunities that allow the City to compete for its fair share of regional, State, and Federal funding.
• Support funding for programs including, but not limited to, economic development, transportation projects, utility undergrounding, public works, water infrastructure, parks and recreation, and public safety.
• Advocate for the City’s best interest at the Federal, State and local level. • Be analytical and transparent with Legislators, City Council, staff, and the community on legislative issues that can have potential impact on the City. • Serve as an active participant with other local governments, the partner organizations listed, and other local professional organizations on legislative/regulatory issues that serve and protect the health and welfare of the City and our region. • Seek grant and funding assistance for City projects, services and programs to enhance services for the community.
2025 Legislative Platform
GOALS
Finance
• Oppose Federal or State efforts that raid local revenues and encourage the State to find other methods of balancing its budget.
• Support legislation that includes Federal, State, and regional funding formulas that ensure equitable distribution of funds at the local level. • Oppose any initiatives that threaten local control of City budgets. • Oppose unfunded mandates.
• Support initiatives that promote equitable and financially prudent efforts to protect utility rate payers in the City.

Human Resources
• Oppose measures that reduce local control over employee relations issues. • Oppose legislation mandating new or enhanced local government employee benefits that are proven to be costly or unaffordable.
• Support efforts to further reform pension benefits administered by California Public Employees’ Retirement System (CalPERS) that would help protect the long-term solvency of local entities and CalPERS.
• Support changes in State law or judicial precedent to allow employers to negotiate plan changes with classic CalPERS members.

Regional Governance
• Support proposals encouraging regional, sub-regional, or countywide cooperation in planning urban development strategies, especially those that provide funding for effective implementation of agreed-upon goals.
• Support measures to achieve fair and proportionate representation on countywide regional boards.

2025 Legislative Platform

AREAS OF FOCUS
2025 Legislative Platform
Economic Development
• Support efforts that are designed to provide local governments with the tools necessary to bolster economic development.
• Support legislation and regulatory initiatives that would enhance the City’s ability to attract and retain businesses as well as encourage business expansion and job retention.

Housing and Land Use
• Oppose regional growth, development, and land use legislation that overlooks the City’s unique geographical and density challenges in a strategic manner taking each neighborhood into account.
• Support efforts to strengthen the legal and fiscal capability of local agencies to prepare, adopt, and implement plans for orderly growth, development, and conservation of local planning areas.
• Support Federal and State legislation that would provide resources for the City to meet its housing needs as described in the Housing Element of the General Plan. • Support measures that provides municipalities with increased input in the development of the RHNA.
• Oppose legislation that penalizes local governments for noncompliance with their housing element if the units identified in the Regional Housing Needs Assessment (RHNA) are not constructed or if housing element programs are not completely implemented. • Support legislation that authorizes local governments to receive RHNA credit for the conversion of above-moderate income units to moderate-income or below moderate income units.
• Support legislation that provides flexibility in the RHNA process for a successful completion of a local government’s housing element.
• Oppose accessory dwelling unit (ADU) legislation that allows the construction of ADUs to preempt local open space requirements.
• Oppose unrealistic timeframe mandates for the construction of housing.

AREAS OF FOCUS (CONT’D)
2025 Legislative Platform
Broadband Infrastructure Development
• Support legislation that advances efforts to bridge the digital divide through broadband accessibility and funding opportunities.
• Support legislation to enhance broadband infrastructure development to provide more affordable and efficient access to basic amenities such as education, health care, public safety, and City services.
• Support policies, legislation, and proposals to add funding to expand fiber capacity throughout the City to provide communities with high-speed Internet access, connect City facilities to the internal City network, and expand the Citywide camera network.

AREAS OF FOCUS (CONT’D)
Cultural and Community Services
• Support legislation and funding for youth and intervention programs, including after-school educational and recreational programs.
• Support efforts to provide an expedited process for the fair distribution of State funds and other grant opportunities.
• Support legislation that provides opportunities, either by grants or other means, that repurpose or renovate existing city and non-city facilities to maximize the City’s limited open space.
• Support legislation that provides opportunities, either by grants or other means, for art and cultural programs.

Public Works & Transportation
• Support legislation that would increase funding for local transportation projects like the Southeast Gateway Line (SGL) project.
• Support legislation that affords local agencies greater discretionary authority to expend available transportation funds and affords local jurisdictions greater flexibility over transportation-related issues.
• Support legislation that would require public utilities to underground power lines and support funding for undergrounding of utilities.

Solid Waste
• Support measures that maintain and
enhance local authority and economic
flexibility to regulate solid waste and
recyclables.
• Support legislation that provides
funding for local governments to create
capacity around the State’s organics
recycling mandate (SB 1383).
• Support legislation that supports local control and flexibility to regulate solid waste and recyclables.
2025 Legislative Platform
AREAS OF FOCUS (CONT’D)
Environmental Sustainability
• Support legislation that encourages strong water efficiency standards and increased water conservation strategies. Support measures to increase water supply and improve water quality in the region, including drought relief legislation.
• Support legislation that allocates cap and trade auction revenue to local governments. • Advocate for cost-effective, sustainable, and responsible environmental legislation, policy, and programs that aim to improve the following areas: energy efficiency (solar), greenhouse gases, regional air quality, alternative/renewable energy sources, climate resiliency infrastructure, among others.
• Support legislation and funding that prioritizes the mitigation of extreme weather events in local communities.
• Support state funding opportunities to assist agencies in meeting sustainability objectives including energy and water efficiencies, active transportation enhancements, connectivity and mobility improvements and carbon sequestration through natural landscape management and protection. • Support legislation protecting, preserving, and restoring the natural environment where it does not conflict with local control and land use designations.
• Support funding to foster an environmentally sustainable city as well as a walkable community that provides ample goods, services, and benefits to all residents while respecting the local environment.
• Support sensible and affordable state and county efforts to develop avenues for agencies to collect revenue to support stormwater retention efforts. Such avenues shall be analyzed to determine the level of impact to taxpayers.
• Support sensible and affordable legislation for funding stormwater infrastructure improvements, including building facilities to capture stormwater runoff and integrate with local, regional, and statewide water resources. Such legislation shall be analyzed to determine the level of impact to taxpayers.
• Support legislation that would provide pragmatic compliance goals in statewide and regional National Pollutant Discharge Elimination System (NPDES) permits. • Ensure the State continues to fund the California Department of Transportation (Caltrans) capital construction budget for offsetting their requirements to limit their total maximum daily load (TMDL) for pollutant discharge. Encourage Caltrans to continue to enter into Cooperative Implementation Agreements with local jurisdictions to fund stormwater capture and retention projects. • Support regional planning and investments in electric vehicle charging infrastructure (both public and private) and zero-emissions equipment through robust grants and financial incentives. 2025 Legislative Platform
AREAS OF FOCUS (CONT’D)
Public Health & Safety
• Support measures that encourage community
safety, preparedness, and wellbeing, including
disaster preparedness initiatives.
• Support legislation and implementation of State
programs and policies that promote pedestrian
and bicycle safety.
• Support legislation to provide a greater share of
asset forfeiture funds and increased latitude for
spending local funds.
• Support legislation efforts to increase the
amount of grant funding for local law
enforcement operations, including school
resource officers and disaster preparedness
initiatives.
• Support legislation that discourages drivers from reckless driving, street racing, and operating motor vehicles while under the influence of drugs or alcohol, and maintain state funding to conduct sobriety checkpoints. • Support legislation that aligns with our values in keeping our neighborhoods safe, improves our community as a whole, enables voices in our community from all backgrounds and abilities, and promotes reasonable, long-term solutions designed to work harmoniously with our partners in law enforcement. • Oppose legislation that compromises public health and sanitation standards for establishments that make, prepare, package, or sell consumables.
• Support legislation that allows for higher penalties for repeat offenders of property crimes such as purchase, sale or theft of precious metals such as copper and those found in catalytic converters. • Support the legislation and funding that enables innovative community incentive programs and the purchase of tools to combat violent and property crime trends involving firearms, stolen vehicles, theft of motor vehicle parts, package theft, and retail theft. Such programs and tools may include Neighborhood Watch, Crime Stoppers, Community Policing, Youth Crime Prevention Programs, Restorative Justice, rebate incentives, license plate readers, surveillance cameras, and enhancing law enforcement personnel. •
• Support legislation, policy, and grants that support the implementation of family and community violence prevention programs.

Homeless Outreach and Prevention
• Support Legislation and initiatives involving Federal, State and County governments to reduce and prevent homelessness.
• Support initiatives and measures that further strengthen City, County, and non-profit agencies coordination and partnerships to combat and prevent homelessness.
2025 Legislative Platform
AREAS OF FOCUS (CONT’D)
Community Preservation
• Support measures that encourage the maintenance of City neighborhoods and shared utility corridors. • Support legislation that prioritizes partnerships with neighboring cities and partners, like Caltrans, to proactively maintain and beautify shared utility corridors.
• Support legislation, policy, and grants that support the implementation of family and community violence prevention programs.
• Support policies, legislation and grants to increase public park land. • Support policies, legislation and grants to increase investment in the arts. • Support policies, legislation, and funding to implement economic relief for working families and small businesses impacted by emergencies, pandemics, and natural disasters. • Support funding for collaborative response and partnerships that will address quality-of-life issues in the community.

Civic Engagement
• Support legislation that protects the transparency and intellectual property of City information. • Support legislation that regulates indecency and obscenity in cyberspace. 2025 Legislative Platform
AREAS OF FOCUS (CONT’D)
To: Honorable City Council
From: John Moreno, City Manager
By: John King, AICP, Interim Planning Director
Sol Bejarano, Management Analyst
Date: January 28, 2025
SUBJECT: UPDATE ON PUBLIC ART MASTER PLAN
As you are aware, the City is working on the Paramount Public Art Master Plan. The plan intends to provide a clear direction and vision for the City’s public art program and ensure that public art is integrated into the community in a meaningful and impactful manner. The Public Art Master Plan will help the City make informed decisions about public art, including the selection and placement of artworks, the commissioning of new works, and the management of the public art collection. As such, one of the recommendations in the plan is to establish a new Public Art Advisory Committee appointed by the Mayor and approved by the City Council to advise on and advocate for public art.

Currently, the Development Review Board reviews and approves proposed art installations as part of new development on private property following the recommendation of City staff, and City staff reviews and approves proposed public art installations in the public right-of-way and at public facilities.

As envisioned by the Public Art Master Plan, the Development Review Board would no longer have a role in the public art on private property review process. The Public Art Advisory Committee would review and recommend approval of art installations on private and public property. The Public Art Advisory Committee would be comprised of a minimum of five and up to seven voting members with two being Councilmembers.

Planning Department staff will provide an oral report regarding the proposed Public Art Advisory Committee, and City Council input on this topic is requested. With this and other feedback from the Council and the public in the coming weeks, the City Council will review the Public Art Master Plan for approval in March. A complementary ordinance will also be prepared for Planning Commission recommendation and City Council final approval.