SECTION 7. That pursuant to Resolution No. 82:043 of the City Council, the time limit to seek judicial review pursuant to California Code of Civil Procedure is ninety (90) days from the date hereof.
SECTION 8. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED and ADOPTED by the City Council of the City of Paramount this _ day of ___2025.
_________________________________
Peggy Lemons, Mayor
Attest:
__________________________________
Heidi Luce, City Clerk
CITY OF PARAMOUNT
LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE NO. 1213
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PARAMOUNT, CALIFORNIA, APPROVING ZONING ORDINANCE TEXT
AMENDMENT NO. 37, AMENDING SECTION 17.24.050
(DEVELOPMENT STANDARDS IN GENERAL), AND ADDING SECTION
17.28.110 (DEVELOPMENT STANDARDS IN GENERAL) OF TITLE 17 OF
THE PARAMOUNT MUNICIPAL CODE REGARDING THE
REPLACEMENT OF REGULATIONS FOR ARCHITECTURAL
GUIDELINES OF THE C-3 (GENERAL COMMERCIAL) ZONE WITH
COMMERCIAL DESIGN GUIDELINES AND ESTABLISHING
COMMERCIAL DESIGN GUIDELINES AS A REQUIREMENT OF THE CM (COMMERCIAL-MANUFACTURING) ZONE IN THE CITY OF PARAMOUNT; AND MAKING A FINDING OF EXEMPTION UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT.
THE CITY COUNCIL OF THE CITY OF PARAMOUNT DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Purpose and Findings. The City Council finds and declares as follows:
A. California Constitution Article XI, Section 7, enables the City of Paramount (“the City”) to enact local planning and land use regulations; and B. The authority to adopt and enforce zoning regulations is an exercise of the City’s police power to protect the public health, safety, and welfare; and C. The City desires to ensure that development occurs in a prudently effective manner, consistent with the goals and objectives of the General Plan as updated and adopted by the City Council on August 7, 2007 and reasonable land use planning principles; and
D. The Planning Commission held a duly noticed public hearing on September 3, 2025 at which time it considered all evidence presented, both written and oral, and at the end of the hearing voted to adopt Resolution No. PC 25:025, recommending that the City Council adopt this Ordinance; and E. The City Council held a duly noticed public hearing on this Ordinance on December 16, 2025, at which time it considered all evidence presented, both written and oral.
ORDINANCE NO. 1213
SECTION 2. The Recitals set forth hereinabove are true and correct and incorporated herein by reference as if fully set forth herein.
SECTION 3. Section 17.24.050 (Development standards in general) of the Paramount Municipal Code is hereby amended in its entirety to read as follows:
A. All new buildings constructed in the C-3 (General Commercial) zone shall conform to the adopted commercial design guidelines of the central business district.
B. Existing buildings within the C-3 zone that are remodeled or expanded shall be brought to compliance with the provisions of the commercial design guidelines, as determined by the Planning and Building Director.
SECTION 4. Section 17.28.110 (Development standards in general) is hereby added to the Paramount Municipal Code to read as follows:
Section 17.28.110 Development standards in general.
A. All new buildings constructed in the C-M (Commercial-Manufacturing) zone shall conform to the adopted commercial design guidelines of the central business district.
B. Existing buildings within the C-M zone that are remodeled or expanded shall be brought to compliance with the provisions of the commercial design guidelines, as determined by the Planning and Building Director.
SECTION 5. California Environmental Quality Act (CEQA). This ordinance is exempt from CEQA pursuant to CEQA Guidelines 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.
SECTION 6. 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.
ORDINANCE NO. 1213
SECTION 7. Effective Date. This Ordinance shall take effect 30 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 __ day of ____ 2025.
Peggy Lemons, Mayor
ATTEST
Heidi Luce, City Clerk
To: Honorable City Council
From: John Moreno, City Manager
By: Grissel Chavez, Assistant City Manager
Date: January 13, 2026
SUBJECT: CONSIDERATION OF AGREEMENTS FOR RAPID RESPONSE SUPPORT RELATING TO THE RECENT CYBERSECURITY INCIDENT:
APPROVAL OF THIRD AMENDMENT TO PROFESSIONAL SERVICES
AGREEMENT WITH INFINITY TECHNOLOGIES AND RATIFICATION OF
AGREEMENTS WITH CONSTANGY, BROOKS, SMITH & PROPHETTE
AND CYBERREASON
BACKGROUND
On December 19, 2025, the City experienced a cybersecurity incident requiring immediate forensic investigation and emergency response services. The City’s IT consultant, Infinity Technologies, provided an immediate emergency response to address the incident, investigate and restore the City’s network, and protect the City’s computer and IT network. Subsequently, through the process of filing a claim with JPIA, the City also retained the services of the law firm Constangy, Brooks, Smith & Prophete LLP (Constangy) and Cybereason as suggested by the JPIA, to conduct further due diligence and investigation.
DISCUSSION
Third Amendment to Agreement with Infinity Technologies On August 2, 2022, the City entered into an agreement with Infinity Technologies for Information Technology (IT) Management Consulting Services. The agreement was first amended on February 27, 2024, to adjust rates for inflation. A second amendment was approved on August 12, 2025, to extend the term, expand the scope of work for project management of the City’s new security camera system, and adjust rates for inflation.
The proposed Third Amendment adds a new scope of work for IT Infrastructure and Network Security investigation and restoration services, as well as new security monitoring measures. These services include:
• Emergency response and forensic investigation related to the December 19, 2025 cybersecurity incident.
• Network hardening, deployment of monitoring tools, and containment strategies.
Agenda Report January 13, 2026
AGREEMENTS RELATED TO CYBERSECURITY INCIDENT Page 2
• Provisioning of cybersecurity tools and reporting.
• Ongoing recovery support and post-incident recommendations. • Annual subscription for endpoint detection and managed detection response services.
Agreements with Constangy and Cybereason
The City’s insurance carrier, the California JPIA, recommended that the City engage the services of Constangy and Cybereason to conduct further investigation and due diligence required as a result of the cybersecurity incident. Cybereason’s services include digital forensics and incident response investigation of Paramount’s network intrusion to determine the source and scope of the incident for purposes of assisting Constangy in providing legal advice to Paramount relating to the incident. The costs for these services (estimated at $55,000) are expected to be covered by the insurance carrier following the City’s filing of a claim through California Joint Powers Insurance Authority (JPIA), subject to any deductible applicable to the claim.
Procurement Requirements
Paramount Municipal Code, Title 3 Revenue and Finance, requires bidding on certain types of contracts and includes exemptions from bidding, as outlined below. Given the emergency nature of the cybersecurity incident and to provide immediate due diligence and prevent delays that would further jeopardize the security of the City’s IT infrastructure, the City exercised Paramount Municipal Code (PMC) 3.12.070 Subsection J to acquire, without bidding, the services provided by Infinity Technologies for annual subscriptions for the detection and response services at a cost of $42,900 per year.
Chapter 3.12 Purchasing of Supplies and Equipment
• 3.12.070 Exemption from Bidding Upon Determination of Purchasing Officer or City Council, Subsection J., Emergency Conditions: Exemptions from bidding and Council approval upon determination of the Purchasing Officer if he or she finds that emergency conditions require the immediate purchase of supplies or equipment. For the purpose of this section, emergency purchases are those procurements required to prevent the immediate interruption or cessation of necessary City services or to safeguard life, property or the public health and welfare.
Section 3.12.070 Subsection J dictates that the bidding requirements under 3.12.050 and
3.12.060 may be waived at the discretion of the Purchasing Officer when an emergency exist that requires the immediate purchase of supplies or equipment to prevent the immediate interruption or cessation of necessary City services or to safeguard property or the public health and welfare.
Agenda Report January 13, 2026
AGREEMENTS RELATED TO CYBERSECURITY INCIDENT Page 3
For the services provided by Constangy and Cybereason, bidding was not necessary because they are providing professional services. They were also vendors approved by the insurance carrier and they are directly covering their fee for services. Due to the existence of the emergency situation, and at the guidance of the insurance carrier, staff signed the contracts for immediate services. Staff is now requesting that the Council ratify the execution of those agreements given that the total value exceeds the City Manager’s contracting authority.
FISCAL IMPACT
An additional budget adjustment of $203,400 is required for emergency response, investigation, system restoration, and ongoing security monitoring costs related to the December 19, 2025 cybersecurity incident. These costs were not included in the adopted FY 2025-26 Operating Budget.
The requested adjustment includes the City’s $100,000 insurance deductible and $103,400 associated with the Third Amendment to the agreement with Infinity Technologies. The amendment consists of a one-time emergency investigation and restoration fee of $60,500 and an annual security monitoring fee of $42,900. Of this cost, approximately $25,000 is anticipated is anticipated to be reimbursed through the City’s cybersecurity insurance claims process, subject to final claim approval.
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.
Agenda Report January 13, 2026
AGREEMENTS RELATED TO CYBERSECURITY INCIDENT Page 4
RECOMMENDED ACTION
1) Approve a budget adjustment in the amount of $203,400 necessary to fund the services provided in response to the cybersecurity incident; 2) Approve the Third Amendment to the Agreement with Infinity Technologies for related cybersecurity incident response and investigation/restoration services and authorize the City Manager to execute the amendment; and 3) Ratify the executed contracts with Constangy, Brooks, Smith and Prophete LLP (Constangy) and Cybereason for related legal counsel and forensics investigation services.
THIRD AMENDMENT TO AGREEMENT WITH INFINITY TECHNOLOGIES WHEREAS, the CITY OF PARAMOUNT (“City”), and INFINITY TECHNOLOGIES (“Consultant”) entered into that certain agreement entitled “AGREEMENT FOR INFORMATION TECHNOLOGY (IT) MANAGEMENT CONSULTING SERVICES,” effective on August 2, 2022, hereinafter referred to as “Original Agreement”; and WHEREAS, the City and Consultant entered into the First Amendment to that Original Agreement on February 27, 2024 to amend the rates to account for inflation increases pursuant to the LA-OC Consumer Price Index; and
WHEREAS, the City and Consultant entered into the Second Amendment to that Original Agreement on August 12, 2025 to amend the term; increase the scope of work and compensation for project management of the City’s new security camera system; and amend the rates to account for inflation increases pursuant to the LA-OC Consumer Price Index; and WHEREAS, the Consultant has provided immediate network forensic investigation services on an emergency basis following a cybersecurity incident on December 19, 2025; and recommends further security monitoring measures be implemented to further protect the City’s network and critical infrastructure; and
WHEREAS, the City has a need for Consultant’s services to increase the City’s protection of its IT infrastructure and network system; and
WHEREAS, the City and Consultant have determined it is in their mutual interest to further amend certain terms of the Original Agreement.
NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:
1. Exhibit A of Original Agreement shall be amended to include an additional scope of work for IT Infrastructure and Network Security investigation and restoration services, along with security enhancement monitoring measures (“Additional Services”), as described in Exhibit A-1 attached hereto and incorporated herein by this reference.
2. Section 2(A) of the Original Agreement is amended to include a one-time cybersecurity emergency investigation/restoration services fee of Sixty Thousand Five Hundred Dollars ($60,500) under the Third Amendment; and an annual security monitoring fee of Forty Two Thousand Nine Hundred Dollars ($42,900) as additional compensation for the Additional Services.
The total annual compensation under the Agreement, including compensation for Additional Services and contingency, but excluding all one-time fees, shall be Four Hundred Twenty-Nine Thousand Six Hundred Four Dollars ($429,604).
3. This Amendment shall be effective on January 13, 2026.
3. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control.
4. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below.
CITY OF PARAMOUNT INFINITY TECHNOLOGIES
By: By:
John Moreno, City Manager Mohammad Ahmed, President
ATTEST:
By:
Heidi Luce, City Clerk
APPROVED AS TO FORM:
By:
Nicholas R. Ghirelli, City Attorney
EXHIBIT A-1
SCOPE OF WORK
A. Emergency Response to Cybersecurity Incident of December 19, 2025
1. Incident Response Coordination (100 Hours)
• Direct collaboration with JRIC and Cyber Response teams. • Rapid deployment of skilled IT and cybersecurity personnel for 24/7 support. • Real-time updates to City leadership and agency partners.
2. Network Infrastructure Protection (60 Hours)
• Assessment and hardening of core network, server, and cloud environments. • Deployment of monitoring tools to detect threats and lateral movement. • Implementation of containment strategies: firewall updates, segmentation, patching.
3. Tool Deployment & Reporting (60 Hours)
• Provisioning of cybersecurity tools: endpoint protection, SIEM, forensic utilities. • Generation of detailed reports on attack vectors, impact, and remediation. • Structured data sharing with JRIC and partner agencies for compliance and intelligence.
4. Ongoing Response & Recovery (40 Hours)
• Restoration of systems and secure reintroduction of services. • Support for e-discovery and forensic analysis with law enforcement. • Delivery of post-incident recommendations: policy updates, training, and tech upgrades.
Time and Materials (T&M) model for cyber incident response, with estimated hours/costs capped at $60,500.
B. Additional Network Security Enhancement and Monitoring Monthly cost of $3,575 for 220 subscriptions of Complete Endpoint Detection Response and Managed Detection Response; annual cost of $42,900.
Donna Maddux, Partner
Cybersecurity & Data Privacy Team
4800 SW Meadows Road, Suite 300
Lake Oswego, Oregon 97035
[email protected]
Telephone: 503.312.6251
www.constangy.com
Emergency: [email protected]
Hotline: 877-382-2724 (877-DTA-BRCH)
Alabama Arkansas California Colorado District of Columbia Florida Georgia Illinois Indiana Maryland Massachusetts Minnesota Missouri New Jersey New York North Carolina Oregon Pennsylvania South Carolina Tennessee Texas Virginia Washington 13919425v1
December 19, 2025
VIA EMAIL
John Moreno
City Manager
City of Paramount
16400 Colorado Avenue
Paramount, CA 90723
[email protected]
Re: Engagement Letter
Dear John:
The purpose of this correspondence is to, upon execution: 1) establish an attorney client relationship between Constangy, Brooks, Smith & Prophete, LLP (“Constangy” or the “Firm”) and City of Paramount; 2) define the scope of the Firm’s representation of City of Paramount; and 3) establish other material terms and conditions of the Firm’s representation of City of Paramount, including but not limited to the financial terms.
Scope of Engagement. Constangy is to represent City of Paramount in connection a potential information security incident. This may involve the facilitation of a forensics investigation, an assessment of consumer and regulatory notification obligations and, if necessary, drafting of notification letters to affected consumers and appropriate regulators, facilitation of remediation services like credit monitoring or identity monitoring for affected consumers, and interfacing with regulators. This letter confirms Constangy’s representation of City of Paramount for these purposes.
Terms of Engagement. When undertaking representation, we believe it is critical that our clients and the Firm share the same understanding of the attorney-client relationship. To that end, I am enclosing a copy of our “Standard Terms of Engagement for Legal Services” brochure, which describes in greater detail the basis on which we provide legal services to our clients. As supplemented by this letter, the “Standard Terms of Engagement for Legal Services” comprises our engagement agreement. Therefore, I ask that you review it carefully and contact me promptly if you have any questions about our relationship. Unless later varied, our engagement agreement will also apply to any subsequent matters we handle for you.
Legal Fees. Fees for services are based on a variety of factors including, for example, time and effort involved, the experience of those doing the work, the complexity of the matter, and the amount of work involved. Of these and other considerations, the time devoted and the experience of those providing the services will be given the most weight. Our hourly rates as authorized by your cyber insurance carrier, GAIG, are $380 for Partners and attorneys who are Of Counsel, $285 for Associates and Senior Counsel, and $175 for Paralegals and Law Clerks.
You will be responsible for payment of invoices directly to Constangy and to seek reimbursement from your cyber insurance carrier unless payment occurs directly to Constangy from your cyber insurance carrier. Please consult with your cyber insurance carrier regarding any deductible or Self-Insured-Retention (SIR) in your policy as it may affect responsibility for payment.
City of Paramount
December 19, 2025
Constangy, Brooks, Smith & Prophete, LLP
13919425v1
Advance Fee Deposit. No retainer is being requested at this time. However, if our legal fees are not paid in a timely manner, we may request that you provide an advance fee deposit equal to the outstanding legal fees. If that occurs, the advance fee deposit will be placed in a trust account for your benefit. Unless otherwise agreed, the advance fee deposit will be credited toward your unpaid invoices, if any, at the conclusion of services. At the conclusion of our legal representation or at such time as the deposit is unnecessary any remaining balance will be returned to you. If the advance fee deposit proves insufficient to cover current expenses and fees on at least a two-month basis, it may have to be increased.
Attorney-Client Privilege. Please be aware that many communications between you and our lawyers and others from the Firm are protected by the attorney-client privilege. Although we do not, as a matter of course, stamp all communications “Attorney-Client Work Product and Privileged,” you should treat them as such. Any privileged information between us should be protected from inadvertent or intentional disclosure to third parties.
Such disclosure may waive the attorney-client privilege. This admonition includes our billing statements, which may contain references to or summarize legal advice we have provided to you.
Reporting to Insurance Carriers. With your agreement, and consistent with cooperation provisions of cyber insurance policies, we will provide information about your potential information security incident to GAIG on your behalf. As our legal advice provided to you is protected by the attorney-client privilege, this information will be shared on the basis of a common interest between you, the Firm and GAIG, which is an extension of the attorney client privilege. We will continue to provide this information unless a conflict arises, e.g., information that may be detrimental to your insurance coverage, or unless you instruct us to stop sharing information on your behalf.
Communication. We believe very strongly in always maintaining an open line of communication with each other. This allows us to better serve you and keep you fully informed regarding the status of the work we are performing on your behalf. Our normal office hours are Monday through Friday, 7:30 a.m. to 5:30 p.m., but I can be reached at any time on my cell phone: 503.312.6251.
I hope the information contained in this letter is helpful. I am pleased that you are entrusting your work to us, and we will do our best to provide you with prompt, high quality, cost-effective legal counsel. Please feel free to call me should you ever have any questions or concerns.
Sincerely,
Donna Maddux
Partner, Cybersecurity & Data Privacy Team
Accepted and agreed to by:
Name (signature):
Name (printed):
Title:
Date:
Enclosed: “Standard Terms of Engagement for Legal Services” Grissel Chavez for John Moreno
Assistant City Manager
December 19, 2025
STANDARD TERMS OF ENGAGEMENT FOR LEGAL SERVICES
This statement sets forth the standard terms of our engagement as your lawyers. Unless modified in writing by mutual agreement or superseded by contrary controlling law, these terms will be an integral part of our agreement with you. Therefore, we ask that you review this statement carefully and contact us promptly if you have any questions. We suggest that you retain this statement in your file. When the terms “firm,” “our,” “us,” and “we” are used below, they refer to Constangy, Brooks, Smith & Prophete, LLP.
The Scope of Our Work
You should have a clear understanding of the legal services we will provide. Our firm will provide the services requested, keep you informed of developments and progress in the matter, and respond promptly to your inquiries. You agree to be truthful and cooperative and apprise us of all developments relating to your needs and our services, to be available to attend all requested appearances and depositions, settlement negotiations or court appearances, to attend meetings when requested by us, and to keep us apprised of any change in address or telephone numbers.
Any expressions on our part concerning the outcome of your legal matters are expressions of our professional judgment, but are not guarantees. Such opinions are necessarily limited by our knowledge of the facts and are based on the state of the law at the time they are expressed.
It is our policy that our client is the person or entity identified in our engagement letter and does not include any affiliates or constituents of such person or entity (e.g., if you are a corporation or partnership, any parents, subsidiaries, employees, officers, directors, shareholders or partners of the corporation or partnership, or commonly owned corporations or partnerships; or, if you are a trade association, any members of the trade association), whether or not any such affiliate or constituent is operationally integrated with the person or entity identified in our engagement letter as our client.
Preservation of Documents, Including Electronically Stored Information Note when you receive notice of a claim or lawsuit, you have a legal duty to retain all documents relevant to that claim or litigation. In that case, you must take affirmative steps to retain all documents related to the claimant’s or plaintiff’s employment, including any Electronically Stored Information (“ESI”). This requires the Company to suspend any applicable document disposal procedures (including routine email deletion) and take affirmative steps to retain all hard-copy document files, e-mail, and other ESI (whether maintained on a Company or personal laptop, desktop hard drive, network drive, storage device (such as thumb drive, disk, or otherwise), data compilations, text messages, voicemails, surveillance tapes and recordings, and any other tangible object that relates to the claim or lawsuit.
The Company must also immediately suspend any document retention/destruction policy and put in place a “Legal Hold.” This Legal Hold is designed to ensure that relevant electronic evidence is Standard Terms of Engagement Constangy, Brooks, Smith & Prophete, LLP preserved and not destroyed, altered, modified, disposed of, or in any way compromised.
Therefore, any individuals who may have relevant information or documents related to a matter must comply with this litigation hold.
We can assist you in determining the precise documents which need to be retained, and if needed, in drafting communications to those individuals in your organization who should be put on notice of this legal duty.
Consent to Electronic Communications
In order to increase our efficiency and responsiveness, we endeavor to use state of the art communication devices (e.g. email, document transfer by computer, wireless telephones, facsimile transfer and other devices which may develop in the future). The use of such devices under current technology may place your confidences and privileges at risk. However, we believe that the efficiencies involved in the use of these devices outweigh the risk of accidental disclosure. By agreeing to these terms, you consent to the use of these electronic communication devices.
Consent to In-House Attorney-Client Privilege
At any time during or after our representation of you, we may consult with our own counsel regarding our rights and obligations to you. These consultations may be with either our internal counsel (i.e., our “General Counsel” or other attorneys within our Firm who have been designated as our in-house counsel) or outside counsel. You agree that any such communications between us and our counsel are separate and apart from our representation of you and that the communications will remain privileged and confidential to us and shall not be subject to disclosure.
Who Will Provide the Legal Services
Customarily, each client of the firm is served by a principal attorney contact. The principal attorney should be someone in whom you have confidence and with whom you enjoy working. You are free to request a change of principal attorney at any time. Subject to the supervisory role of the principal attorney, your work or parts of it may be performed by other lawyers and legal assistants in the firm. Such delegation may be for the purpose of involving lawyers or legal assistants with special expertise in a given area, or lawyers who are licensed in a state in which a particular issue arises, or for the purpose of providing services on an efficient and timely basis. Whenever practicable, we will advise you of the names of those attorneys and legal assistants who work on your matters.
How Fees Will Be Set
In determining the amount to be charged for the legal services we provide to you we will consider:
The time and effort required, the novelty and complexity of the issues presented, and the skill required to perform the legal services promptly;
The fees customarily charged in the community for similar services and the value of the services to you;
The amount of money or value of property involved and the results obtained; Standard Terms of Engagement Constangy, Brooks, Smith & Prophete, LLP The time constraints imposed by you as our client and other circumstances, such as an emergency closing, the need for injunctive relief from court, or substantial disruption of other office business;
The nature and longevity of our professional relationship with you; The experience, reputation and expertise of the lawyers performing the services; and The extent to which office procedures and systems have produced a high-quality product efficiently.
Among these factors, the time and effort required are typically weighted most heavily. We will keep accurate records of the time we devote to your work, including conferences (both in person and over the telephone), negotiations, factual and legal research and analysis, document preparation and revision, travel on your behalf, and other related matters. We record our time in units of tenths of an hour.
The hourly rates of our lawyers and legal assistants have an important bearing on the fees we charge. Rates are set for those attorneys based on their experience level and areas of practice, as well as overhead costs and other market factors. We periodically review our rates and reserve the right to make adjustments as needed. Any adjustments are typically made in January of each year.
We are sometimes requested to estimate the amount of fees and costs likely to be incurred in connection with a particular matter. Whenever possible, we will furnish such an estimate based upon our professional judgment, but always with a clear understanding that it is not a maximum or fixed-fee quotation. The ultimate cost frequently is more or less than the amount estimated.
For certain well-defined services (for example, a simple business incorporation), upon request, we may quote a flat fee. It is our policy not to accept representation on a flat-fee basis except in such defined-service areas or pursuant to a special arrangement tailored to the needs of a particular client.
Any flat fee arrangement will be expressed in a letter or an email message that sets forth both the amount of the fee and the scope of the services to be provided. In undertaking representation of a client with a personal injury or wrongful death claim or certain other matters, we will, in appropriate circumstances, provide legal services on a contingent fee basis. Any such contingent fee arrangement must be reflected in a written contingent fee agreement.
Expenses
Please know that Constangy bills separately for out-of-pocket expenses such as overnight mail, outsourced copying, and any mileage, lodging or other travel costs. These expenses will be separately itemized on your invoice. Unlike many firms, however, we do not charge for incidental expenses such as in-house copying, long distance telephone calls, faxes, postage, or standard computerized research within our research subscription.
Standard Terms of Engagement Constangy, Brooks, Smith & Prophete, LLP Additional Charges/Third Party Services
Other expenses for which the Firm contracts in bulk (e.g., online research, imaging, facsimile and litigation support) will include a reasonable allocation of overhead for clients using those services.
During any matter in which we represent the Company, we may also incur expenses related to electronic discovery services when processing Electronically Stored Information (“ESI”).
Depending on the volume and complexity of the ESI, collection and processing may be performed in-house or by an outside vendor. We will bill the Company for the time of both in-house professionals and outside vendors. We will also bill the Company $20/GB/Month for data hosting fees as well as $80/User/Month for access to the review platform, although hosting fees only apply while the applicable case is active.
In the event third party services are engaged by us, on your behalf and with your written approval, you agree to pay an outside vendor invoice directly, and if you fail to do so, you agree to defend and indemnify us with respect to any claim, demands or suit brought against us as a result of your failure to pay such invoice. Payment directly by us of any such expense shall not be construed as a waiver of our right to require you in the future to pay any similar expense directly.
We would be pleased to discuss the specific schedule of charges for any additional services and to answer any questions.
Advance Fee Deposits
New clients of the firm are commonly asked to deposit an advance fee deposit with the firm. If an advance fee deposit is requested, the engagement is contingent on receipt of that advance fee deposit. You hereby grant us a security interest in any advance fee deposit with us and in any other funds we hold on your behalf to secure your obligations to us under this agreement. The advance fee deposit is often equal to our estimate of the fees and costs likely to be incurred during a twomonth period. Unless otherwise agreed, the advance fee deposit will be credited toward your unpaid invoices, if any, at the conclusion of services. At the conclusion of our legal representation or at such time as the deposit has become unnecessary or has been appropriately reduced, the remaining balance or an appropriate part of it will be returned to you. If the deposit proves insufficient to cover current expenses and fees on at least a two-month basis, it may have to be increased.
Deposits which are received to cover specific items will be disbursed as provided in our agreement with you, and you will be notified from time to time of the amounts applied or withdrawn. Any amount remaining after disbursement will be returned to you.
All trust deposits we receive from you, including advance fee deposits, will be placed in a trust account for your benefit, depending on state or federal law.
Termination
You may terminate our representation at any time, with or without cause. Our right or obligation to terminate our representation is subject to the rules of professional conduct for the applicable Standard Terms of Engagement Constangy, Brooks, Smith & Prophete, LLP jurisdiction in which we practice, which list several types of conduct or circumstances that require or permit us to withdraw from a representation, including, for example, nonpayment of fees or costs, misrepresentation or failure to disclose material facts, failure to cooperate, taking action contrary to our advice and conflict of interest with another client. We will try to identify in advance and discuss with you any situation which may lead to our withdrawal and if we decide to withdraw, we usually give written notice of our withdrawal.
Unless previously terminated by you or us, the attorney-client relationship will be considered terminated upon our sending you the invoice that describes the final legal services for all matters that you have retained us to perform. You will not thereafter be considered a current client because you remain on a firm mailing list or have appointed an affiliate of the firm to serve as your registered agent or because the firm retains possession of certain of your papers or other property received in connection with the prior engagement or is identified as a required recipient of notices under a contract to which you are a party. If you later retain us to perform further or additional legal services, our attorney-client relationship will be revived subject to our standard terms of engagement in effect at that time.
Retention and Disposition of Documents
At the conclusion of our representation or any matter which we are handling for you, we reserve the right to retain our files pertaining to the matter (including attorney work product) in electronic format only. We also reserve the right to destroy electronic documents after they have been maintained for seven years. If you would like us to return any hard copy files to you at the conclusion of the case, or electronic documents to you during the seven-year retention period, please contact us by email or in writing, and we will be happy to arrange for delivery of the files.
If, upon your request, we agree to provide you with copies of certain documents from our file pertaining to the matter, you agree to pay the copying costs.
Post-Engagement Matters
You are engaging the firm to provide legal services in connection with a specific matter. After completion of the matter, changes may occur in the applicable laws or regulations that could have an impact upon your future rights and liabilities. Unless you engage us after completion of the matter to provide additional legal advice on issues arising from the matter, the firm has no continuing obligation to advise you with respect to future legal developments.
Billing Arrangements and Terms of Payments
We will bill you on a regular basis, normally each month, for both fees and disbursements. You agree to make payment upon receipt or no longer than 30 days after receiving our statement. If you timely object in writing to a portion of a statement, you agree to pay the remainder of the statement which is not in dispute. We agree to accept such partial payment without claiming you have waived your right to contest the unpaid portion of the bill.
Standard Terms of Engagement Constangy, Brooks, Smith & Prophete, LLP We will give you prompt notice if your account becomes delinquent, and you agree to bring the account or the retainer deposit current. If the delinquency continues and you do not arrange satisfactory payment terms, you agree that we may withdraw from the representation and pursue collection of your account. You agree to pay the expenses of collecting the debt, including court costs, filing fees and reasonable attorneys’ fees.
If we are handling multiple matters for you, we require payment on all matters be kept current as a condition of continuing work. Should the scope of our work change or you fail to make payments in a timely manner, we reserve the right to request an advance deposit or retainer.
Related Proceedings
If any claim is brought against the firm or any of its personnel based on your negligence or misconduct, if we are asked to testify as a result of our representation of you, or if we must defend the confidentiality of our communications in any proceeding, you agree to reimburse us for any resulting costs, including for our time, calculated at the hourly rate for the particular individuals involved, even if our representation of you has terminated.
Choice of Law/Forum Selection
The engagement letter is deemed to have been executed, and is intended to be performed in the state of Georgia, subject to its laws, regardless of whether services are actually rendered outside of the State. Any dispute arising from this agreement shall be governed by the laws of the state of Georgia. The venue for the judicial resolution of such dispute shall be proper only within the state of Georgia.
Your Right to Arbitrate
If you disagree with the amount of our fee, or if you have any complaint about the services rendered by us, please take up the question with your principal attorney contact or with the firm’s managing partner. Typically, such disagreements are resolved to the satisfaction of both sides with little inconvenience or formality. If a fee dispute is not readily resolved, you have the right to request arbitration under supervision of the bar associations for the jurisdictions in which we practice, and we agree to participate in that process.
Complete Agreement
As referenced in and supplemented by the Engagement Letter, these standard terms of engagement comprise our engagement agreement. No change to this agreement shall be effective unless and until confirmed in writing by you and the firm. There are no promises, terms, conditions or obligations other than those contained herein, and this agreement supersedes all previous communications, representations, or other agreements, either oral or written, between you and the firm.
Thank you for choosing Constangy, Brooks, Smith & Prophete, LLP to represent you in this matter.
rev 2025.Jan.31
Master Services Agreement
This Master Services Agreement (collectively with the applicable order(s), statement(s) of work, or quote(s), this “Agreement”) is made and entered into as of the last date signed below by and between Cybereason Inc., a Delaware corporation, with offices located at 1250 Prospect Street, Ste O3, La Jolla, California 92037, USA (“Cybereason”), Constangy, Brooks, Smith & Prophete, LLP, with offices located at 230 Peachtree Street, N.W., Atlanta, GA 30303, USA (“Law Firm”) and City of Paramount, CA, with offices located at 16400 Colorado Ave, Paramount, California 90723 (“Client” or “Customer”), each a “Party” or collectively the “Parties”, concerning certain data privacy and information security consulting services that Cybereason will perform for Law Firm in its representation of Client.
Cybereason understands that Law Firm represents Client in connection with data privacy and information security consulting. Law Firm is retaining Cybereason on behalf of Client in anticipation of litigation and in order to assist Law Firm in obtaining the requisite information to render legal advice to Client for the purpose of mitigating liability regarding compliance with statutory, regulatory and contractual obligations, including information security standards, and mitigating the risk of third-party liability and potential litigation in connection with an information security incident. Accordingly, it is the intent and agreement of all Parties to treat all materials and communications as privileged and confidential under attorneyclient privilege and for the work-product doctrine to protect all written documentation and reporting. It is clarified that even in such circumstances Client shall be solely responsible for payment of any fees owed to Cybereason unless otherwise agreed between the Parties.
If Client elects to engage Cybereason to perform other business-related work outside of this engagement, Client and Cybereason will enter into a separate agreement and will take steps to ensure that Cybereason keeps any work papers for any non-privileged engagements separate and district from those relating to this privileged engagement.
If Cybereason serves as an expert witness in any trial or controversial proceeding related to this engagement, Cybereason agrees that, without Law Firm’s and Client’s prior written consent, it will not disclose any information that Client or Law Firm provides to Cybereason during this engagement.
In consideration of the mutual promises and conditions contained in this Agreement the Parties agree as follows:
1. Definitions
“Affiliate” means an entity that directly or indirectly controls, is controlled by, or is under common control with a Party.
For purposes herein, “control” means ownership, directly or indirectly, of more than fifty percent (50%) of the voting shares or other equity interest in an entity. “DPA” means Cybereason’s Data Processing Agreement located at:
https://www.cybereason.com/DPA, as may be amended or supplemented. “Offering” or “Service(s)” means any software and services provided by Cybereason under an SOW or pursuant to an order or a quote.
2. Scope & Performance
2.1 Cybereason shall provide Offerings as set out in a signed statement of work (SOW) agreed between the Parties (which shall be subject to the provisions contained herein) at the fees set out therein or a quotation/proposal/offer which has been confirmed by the Customer. In the event of any conflict between the terms of this Agreement and an SOW, the former shall prevail Client otherwise expressly stated in the SOW. If Cybereason is requested to provide any services under this Agreement other than those set out in the SOW, the Parties shall agree to the fees for such additional work/services, and in the absence of such agreement such work/services shall be provided at Cybereason’s standard time and material rates (“T&M rates”).
2.2 For the avoidance of doubt, Cybereason may have any one or more of its Affiliates and/or subcontractors and/or independent contractors (collectively “Agents”) perform its obligations and relevant activities hereunder, which performance shall be subject to the terms and provisions of the Agreement. Cybereason is fully responsible for such performance of its Agents.
2.3 Services will be provided directly to Law Firm and under Law Firm’s instructions, save for where the Law Firm instructs Cybereason otherwise. Any services and/or information received from or provided to Client under this MSA shall be treated as strictly confidential and protected by the Attorney-client privilege.
3. Payment, Fees and Taxes
3.1 Fees will be invoiced at the time Services are ordered, unless otherwise designated in the applicable services description, quote or SOW. The fees agreed between the Parties do not include payment to Cybereason for any services it may be required to provide due to a subpoena clause related to the Services, and Customer shall reimburse Cybereason for such services based on Cybereason standard T&M rates.
Docusign Envelope ID: 2E5B35F3-5906-4E59-9985-B908E4B0840B rev 2025.Jan.31
3.2 All fees are exclusive of any taxes, including sales, use, excise, value added, withholding taxes, customs duties and tariffs now or hereafter claimed or imposed by any governmental authority, and are the net amounts to be actually received by Cybereason after payment of all such taxes, duties or charges all of which shall be paid by Customer and which are in addition to the amounts to be actually received by Cybereason. In the event Cybereason is required to pay any such tax, duty or charge, Customer will promptly reimburse Cybereason for any such actual fees on an after-tax basis. All fees are non-refundable and shall not be subject to any offsets or reductions (except as otherwise specifically provided herein). Customer is responsible for providing any applicable tax exemption certificates.
4. Data Collection and Use
For purposes of providing the Offerings to Customer, Customer acknowledges and agrees that Cybereason may access, process and collect the data set out in the DPA and any other data or information described in an applicable quote, SOW, or Offering specification. Upon Law Firm’s and Customer’s reasonable request, Cybereason may enable the Offerings to collect additional data or information, including but not limited to, specific files or logs. To the extent that Cybereason processes any Customer Personal Data (as defined in the DPA, as applicable), the terms of the DPA, which are hereby incorporated by reference, shall apply and the Parties agree to comply with such terms.
5. Confidentiality
5.1 “Confidential Information” means, any information, data or knowledge of any kind and in any form and however disclosed, presented or displayed, by a Party hereto and/or any of its Affiliates (“Disclosing Party”) to the other Party (the “Receiving Party”) and which is not generally available to the public, including products and services (and any related documentation), computer programs, business information, trade-secrets, methodology, know-how, marketing and other commercial/financial knowledge, techniques, specifications, plans and other proprietary information. All work performed, materials and work product of any kind generated in furtherance of the Offerings under this Agreement will be deemed to be Confidential Information and, to the extent permitted, privileged and attorney work product of Law Firm.
5.2 Confidential Information shall not include information which (a) is in or comes into the public domain without fault on the part of the Receiving Party; (b) was lawfully known to it prior to its disclosure by the Disclosing Party; (c) is lawfully disclosed to the Receiving Party by a third party; (d) was independently developed without reference to the Confidential Information; (e) is made available to third parties by the Disclosing Party without restriction on the disclosure of such information; or (f) is approved by the Disclosing Party for release in writing.
5.3 The Receiving Party will maintain the Confidential Information in strict confidence and will use the same degree of care and discretion as it uses to protect its own confidential information. Except as authorized hereunder, the Receiving Party will not disclose or use or allow others to disclose or use the Confidential Information without the prior written consent of the Disclosing Party. The Receiving Party shall only use the Confidential Information for the purposes of this Agreement and only disclose the Confidential Information to its directors, officers, employees, Agents and any other person that the Disclosing Party has authorized the receiving Party to disclose the Confidential Information to (“Representatives”) who need to have access to the same for said purpose, provided that each of the Representatives is bound by confidentiality obligations no less restrictive than those contained herein and that the Receiving Party will be responsible for any breach of any of the provisions of this Agreement by its Representatives.
If the Receiving Party/ its Representatives receives a request or order for disclosure of Confidential Information from any court, tribunal, government department or agency or other official body, or if the Receiving Party believes disclosure is otherwise required under applicable law, if legally permissible, it shall promptly notify the Disclosing Party and shall cooperate with the Disclosing Party (at the Disclosing Party’s expense) if it wishes to seek a protective order. If the Receiving Party/ its Representatives is legally compelled to disclose Confidential Information, it may disclose only the minimal amount legally required to be disclosed.
6. Warranties and Disclaimers
6.1 Cybereason warrants that Services will be performed in a professional and workmanlike manner consistent with generally accepted industry standards. Customer’s sole and exclusive remedy and Cybereason’s entire liability for its breach of this warranty will be for Cybereason, at its option and expense, to use commercially reasonable efforts to re-perform the non-conforming Services, or refund a portion of the pre-paid fees attributable to the nonconforming Services.
Docusign Envelope ID: 2E5B35F3-5906-4E59-9985-B908E4B0840B rev 2025.Jan.31
6.2 Customer warrants that (i) it has the right to be in possession of, or is the owner of, all media/equipment/information/data furnished to Cybereason and/or processed by the Offerings (collectively “Materials”) and (ii) the Materials are furnished for a lawful purpose, and (iii) where applicable, Customer’s collection, possession, processing and transfer of such Materials is in compliance with any and all applicable laws, regulations and Customer policies, including without limitation concerning data privacy and employee consents.
6.3 CUSTOMER UNDERSTANDS THAT CYBEREASON DOES NOT AND CANNOT CONTROL THE FLOW OF DATA TO OR FROM CYBEREASON’S OR CUSTOMER’S NETWORK AND OTHER PORTIONS OF THE
INTERNET, AND ACCORDINGLY CYBEREASON DISCLAIMS ANY AND ALL WARRANTIES AND LIABILITIES
RESULTING FROM OR RELATED TO A FAILURE IN THE PERFORMANCE OF INTERNET SERVICES PROVIDED OR CONTROLLED BY A THIRD PARTY. CUSTOMER UNDERSTANDS AND AGREES THAT
CYBEREASON DOES NOT GUARANTEE OR WARRANT THAT IT WILL FIND, LOCATE, DISCOVER OR REMEDIATE ALL OF CUSTOMER’S OR ITS AFFILIATES’ SYSTEM THREATS, VULNERABILITIES, MALWARE,
AND MALICIOUS SOFTWARE, AND CUSTOMER AND ITS AFFILIATES WILL NOT HOLD CYBEREASON RESPONSIBLE THEREFOR. CUSTOMER LIKEWISE UNDERSTANDS THAT ITS VARIOUS FORMS OF
DATA/MEDIA CARRIERS MAY BE DAMAGED, INFECTED, CORRUPTED AND OTHERWISE EFFECTED
PRIOR TO THE SERVICES BEING PROVIDED AND CYBEREASON SHALL BEAR NO RESPONSIBILITY
THEREFOR OR FOR ANY PROBLEM STEMMING THEREFROM, OR FROM ANY THIRD PARTY OR OPEN SOURCE DATA USED IN THE DELIVERY OF THE SERVICES. ANY DATA, ESPECIALLY DATA RESTORED FROM UNKNOWN SOURCES, MAY CONTAIN VIRUSES OR OTHER MALWARE; THEREFORE, CUSTOMER
ASSUMES RESPONSIBILITY TO TAKE ALL NECESSARY PRECAUTIONS WITH REGARD TO SUCH DATA AND SHALL ADVISE ANYONE THAT MAY BE IMPACTED BY THE SAME OF SUCH DANGER.
6.4 THE EXPRESS WARRANTIES SET FORTH IN THIS SECTION CONSTITUTE THE ONLY WARRANTIES WITH RESPECT TO THE OFFERINGS. CYBEREASON MAKES AND CUSTOMER RECEIVES NO OTHER
REPRESENTATION OR WARRANTY OF ANY KIND, WHETHER EXPRESS, IMPLIED OR STATUTORY WITH RESPECT TO THE OFFERINGS. CYBEREASON EXPRESSLY DISCLAIMS ANY AND ALL PROMISES,
REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING WITHOUT
LIMITATION, WARRANTIES OF NON-INFRINGEMENT, TITLE, MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, ERROR FREE OPERATION OR NON-INTRUSION DUE TO HACKING OR OTHER
SIMILAR MEANS OF UNAUTHORIZED ACCESS, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW.
7. LIMITATIONS ON LIABILITY
EXCEPT FOR A PARTY’S INDEMNIFICATION OBLIGATIONS OR THE MISAPPROPRIATION OF EITHER PARTY’S INTELLECTUAL PROPERTY RIGHTS (THE “EXCLUSIONS”), IN NO EVENT WILL EITHER PARTY, INCLUDING ITS
PROVIDERS, BE LIABLE FOR ANY INCIDENTAL, INDIRECT, PUNITIVE, EXEMPLARY, SPECIAL OR
CONSEQUENTIAL DAMAGES, OR FOR COSTS OF PROCUREMENT OF SUBSTITUTE OFFERINGS, LOST
PROFITS, LOSS OF BUSINESS OR BUSINESS OPPORTUNITIES, LOSS OF GOODWILL, REPUTATIONAL
DAMAGES, WORK STOPPAGE, BUSINESS INTERRUPTION, OR LOST SAVINGS OR REVENUES OF ANY KIND,
OR FOR LOST DATA, DAMAGE TO OTHER SOFTWARE, COMPUTER FAILURE OR MALFUNCTION OR DOWNTIME OR THIRD PARTY CLAIMS. EXCEPT FOR THE EXCLUSIONS OR WILLFUL MISCONDUCT, EACH PARTY’S, INCLUDING ITS PROVIDERS, TOTAL AND CUMULATIVE LIABILITY FOR ALL CLAIMS UNDER THIS
AGREEMENT, REGARDLESS OF THE FORM OF ACTION SHALL NOT EXCEED THE AGGREGATE AMOUNTS RECEIVED BY CYBEREASON DURING THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRIOR TO THE DATE THE CAUSE OF ACTION AROSE. THE LIMITATIONS SET FORTH IN THIS SECTION SHALL APPLY EVEN IF A PARTY AND ITS RELATED PARTIES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
8. Indemnification
The Services do not contemplate Cybereason being made party to any legal proceedings, or subject to third-party claims. Accordingly, Customer agrees to hold harmless and indemnify Cybereason against all third-party claims, damages and costs (including reasonable attorneys' fees and disbursements) arising out of such Services (including any use of any reports by Customer) except for when resulting from any negligence, fraud, willful misconduct or unlawful conduct by Cybereason.
9. Term and Termination and Suspension
9.1 Either Party may terminate this Agreement by written notice to the other Party if the other Party breaches any material obligation hereunder, which breach remains uncured for thirty (30) days after receipt of written notice of Docusign Envelope ID: 2E5B35F3-5906-4E59-9985-B908E4B0840B rev 2025.Jan.31
breach by the breaching Party. Cybereason may immediately suspend performance of this Agreement upon delayed payment of more than fifteen (15) days.
9.2 Either Party may immediately terminate this Agreement by written notice to the other if (i) the other Party ceases to do business or becomes insolvent, (ii) upon institution by the other Party of insolvency, receivership or bankruptcy proceedings or any other proceedings for the settlement of debt, (iii) upon the institution of such proceedings against the other Party, which are not dismissed or otherwise resolved in such Party’s favor within sixty (60) days thereafter or (iv) upon the other Party making a general assignment for the benefit of creditors. In addition, Cybereason may immediately terminate this Agreement if Customer or any of its affiliates, owners, partners, officers, directors, employees, or any other persons acting for or on its behalf is or becomes a Prohibited Person.
10. Miscellaneous
10.1 Subpoena Reimbursement. If Cybereason is required to respond to any third-party requests, subpoenas, or to provide testimony, Client agrees to compensate Cybereason for reasonable costs and expenses incurred (e.g., reimbursement of reasonable attorneys’ fees and disbursements) including without limitation compensating Cybereason (at hourly rates, as applicable) for responding to legal requests or demands for information and preparing for and testifying at deposition, proceedings and/or trials.
10.2 Survival. Sections 5, 6, 7, 8, 10.1, 10.3, 10.8 and 10.9 and all payment obligations incurred prior to the termination or expiration of this Agreement will survive such termination or expiration.
10.3 Customer shall meet its obligations as set out in the SOW and will provide all information and assistance reasonably required by Cybereason for the purpose of executing the SOW.
10.4 Notices. All notices under this Agreement will be in writing, will reference this Agreement, and will be addressed to (i) Cybereason, at the address set forth above, (ii) to Law Firm, at the address set forth above, or to such other address that a Party previously designates for such purpose, and (iii) to Customer, at the address set forth in a quote, or to such other address that a Party previously designates for such purpose. All notices will be effective:
(i) when personally delivered, (ii) on the reported delivery date if sent by a recognized international or overnight courier, or (iii) five (5) business days after being sent by registered or certified mail (or ten (10) days for international mail).
10.5 Force Majeure. No Party will be responsible for any failure to perform its obligations (other than payment obligations) under this Agreement attributable in whole or in part to the other Party’s fault or negligence and/or to any cause beyond its reasonable control, including but not limited to acts of God, government actions, war, or civil disturbance.
10.6 Assignment. No Party may assign or transfer any rights or obligations under this Agreement without the prior written consent of the other Party; provided, that either Party may assign this Agreement and any of its rights or obligations hereunder to any of its Affiliates or in the event of a merger, sale, acquisition, amalgamation, change of control, corporate restructuring, or sale of all or substantially all of its assets and/or stock, or any similar transaction without such prior written consent. Any assignment or transfer of this Agreement made in contravention of the terms hereof shall be null and void. Subject to the foregoing, this Agreement shall be binding on and inure to the benefit of the Parties’ respective successors and permitted assigns.
10.7 No Third-Party Beneficiaries. This Agreement is intended solely for the benefit of the Parties. In no event will any third party have any rights in relation to this Agreement or any right to enforce the terms hereof. Notwithstanding the foregoing, if for any reason the general terms of this Agreement are put in place for purposes of an agreement between Customer and a Cybereason partner, Cybereason shall be a third party beneficiary to such agreement.
10.8 Conflicts of Interest. The provision of any services hereunder shall not prevent Cybereason and/or its Affiliates from providing similar services to any other of its clients that may be adverse to Customer on the condition that such services provided to the other clients are not on the same (or substantially related) matter on which the services are provided hereunder to Customer.
10.9 No Additional Commitments; Amendment; Waiver.
Docusign Envelope ID: 2E5B35F3-5906-4E59-9985-B908E4B0840B rev 2025.Jan.31
(a) This Agreement (including any terms incorporated herein) constitutes the entire agreement between the Parties concerning the subject matter hereof and supersedes any previous agreements, understandings and arrangements relating to the same. Any contradictory or pre-printed terms and conditions or purchase order terms that Customer may provide in connection with its order shall be deemed null and void. (b) This Agreement may not be modified except by a written agreement executed by all Parties, except as expressly permitted herein.
(c) If any of the provisions of this Agreement are held to be invalid under any applicable law, the invalid part will be replaced with a provision which accomplishes, to the fullest extent possible, the original purpose of such part or provision in a valid manner, and the balance of this Agreement will remain in full force and effect. No failure or delay in exercising any right in relation to a breach shall operate as a waiver of such right, and the waiver by any Party of any such breach will not be construed as a waiver of subsequent breaches or as a continuing waiver of such breach.
10.10 Governing Law; Jurisdiction; Jury Waiver. This Agreement is to be construed in accordance with and governed by the laws of the applicable jurisdiction, as set forth in the table below (the “Applicable Jurisdiction”) without giving effect to any choice of law rule that would cause the application of the laws of any other jurisdiction. Any legal suit, action or proceeding arising out of or relating to this Agreement shall be commenced only in the courts of the Applicable Jurisdiction and each Party hereto irrevocably submits to the exclusive jurisdiction and venue of any such court in any such legal suit, action or proceeding.
Region in which Customer’s Address is
Located
Applicable Jurisdiction
Europe/Middle East and Africa (EMEA) London, England
Asia/Pacific (APAC) and India (excluding Japan) Singapore, Republic of Singapore North America/Central & Latin America
(NA/CALA)
New York, NY, USA
Japan Tokyo, Japan
IF RELEVANT TO THE APPLICABLE JURISDICTION, EACH PARTY HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.
10.11 Independent Contractors. The Parties will at all times be independent contractors with respect to each other and neither Party will purport to bind the other. No partnership, joint venture, agency, employer-employee relationship or any other relationship between the Parties hereto is contemplated or created hereby.
10.12 Third Party components and Services. In the event that any of the services provided through third party products/services/vendors become unavailable or inaccessible to Cybereason for any reason, Cybereason will provide prompt written notice to Customer and may replace discontinued services with an equal or greater valued offering. In the event the services cannot be reasonably replaced, Customer shall be entitled to receive a return of fees paid in advance for the non-provided part of the services.
10.13 Compliance with Laws; Use Restrictions. Customer represents and warrants that neither it nor any of its affiliates, owners, partners, officers, directors, employees, or any other persons acting for or on its behalf is a Prohibited Person. Cybereason shall have the sole discretion to withdraw, cancel, terminate, alter, or modify the services to the extent Cybereason finds it necessary to do so in order to comply with applicable laws including Export Controls and Economic Sanctions Laws. Customer is solely responsible for determining the appropriateness of the services for its business purposes, complying with laws applicable to it in connection with receipt/use of the services and obtaining any and all required consents for receiving the services.
For the purposes of the above section:
“Export Controls and Economic Sanctions Laws” means all export control, economic or financial sanctions, and trade embargo laws, regulations, orders, directives and other legal requirements applicable to Company, a Cybereason partner, and/or Customer, including but not limited to those administered and enforced from time to time by (a) the U.S. government, including the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), the U.S. Department of State, or the U.S. Department of Commerce, (b) the United Nations, (c) the Docusign Envelope ID: 2E5B35F3-5906-4E59-9985-B908E4B0840B rev 2025.Jan.31
European Union (“EU”), (d) the state of Israel, (e) HM Treasury of the United Kingdom, or (f) the government of any other country or territory in which Company, a Cybereason partner, or Customer conducts or in the past have conducted business, directly or indirectly.
“Prohibited Person” means any individual or entity that is (i) on the U.S. Department of Commerce’s Denied Persons List, Entity List, Unverified List or affiliated lists, (ii) on the OFAC Specially Designated Nationals and Blocked Persons List or Consolidated Sanctions List, (iii) on the U.S. Department of State’s Debarred List or Nonproliferation List, (iv) located, resident, or organized in jurisdictions subject to U.S. and/or other applicable territorial sanctions (collectively “Prohibited Jurisdictions”; as of the date of this Agreement, such jurisdictions include, without limitation, Cuba, Iran, Iraq, Lebanon, Libya, North Korea, Sudan, Syria, Venezuela, Yemen and the Regions of Crimea, Donetsk and Luhansk (Ukraine)), (v) any entity, regardless of location, that is owned or controlled by a government of any Prohibited Jurisdiction, or (vi) otherwise the targets of any Export Controls and Economic Sanctions Laws such that dealings with such individual or entity by the Company, a Cybereason partner, or any Customer would be prohibited.
Docusign Envelope ID: 2E5B35F3-5906-4E59-9985-B908E4B0840B rev 2025.Jan.31
IN WITNESS WHEREOF, the authorized representatives of the Parties have executed this Agreement, as of the date of the last signature set forth below.
Cybereason Inc.
Signature: /s3/
Name: /n3/
Title: /t3/
Date: /d3/
City of Paramount, CA
Signature: /s1/
Name: /n1/
Title: /t1/
Date: /d1/
To the extent a law firm is engaging Cybereason on
behalf of client:
Constangy
Signature: /s2/
Name: /n2/
Title: /t2/
Date: /d2/
Docusign Envelope ID: 2E5B35F3-5906-4E59-9985-B908E4B0840B Global Head, DFIR
12/19/2025
Devon Ackerman
Partner
12/19/2025
Donna Maddux
Grissel Chavez
Assistant City Manager
12/19/2025
rev 2025.Jan.31
Statement of Work
This statement of work (“SOW”) is entered into as of the date of the last signature below (the “Effective Date”) by and between Cybereason Inc. (“Cybereason”) and City of Paramount, CA (“Client” or “Customer”) and is subject to and incorporates herein the Master Services Agreement located at www.cybereason.com/msa unless the Parties have executed a master services agreement, in which case the latter shall supersede (the “Agreement”). Liability amounts included in the Agreement shall be applicable and limited by the fees paid for the Services under this SOW. All capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Agreement unless otherwise specified herein or reasonably understood by the context. In the event of any conflict or inconsistency between the provisions of the Agreement and those contained herein, the latter shall prevail.
Cybereason understands that to the extent a law firm has also executed this SOW by signing below, then such law firm has retained Cybereason on behalf of Client in anticipation of litigation and in order to provide legal advice. Accordingly, Cybereason agrees to treat all materials and communications as privileged and confidential under attorney-client privilege.
It is clarified that even in such circumstances Client shall be solely responsible for payment of any fees owed to Cybereason unless otherwise agreed between the Parties.
1. Description of Services
Service Estimated Fees
Phase 1 - Digital Forensics & Incident Response (DFIR) Investigation - Intrusion ● Cybereason will work with Client to gain secure and remote access to relevant security solutions (e.g., NGAV, EDR, etc.), network configurations and perimeter logging (e.g., VPN, Firewall, Load Balancer, etc.) for forensic review and analysis.
o Forensic acquisition of log data is limited to thirty (30) days preceding the earliest suspected or confirmed date of unauthorized access. ● Cybereason will work with Client on deployment of its Rapid Artifact Collection and Response (RACR) sensor in furtherance of its investigation and forensic analysis on up to the following anticipated number of endpoints:
o Total endpoints (e.g., servers + end user workstations, etc.) for sensor deployment & baseline triage analysis: 200
o Of total, number of endpoints for anticipated deep-dive analysis: 3 o Of total, number of HyperV and/or ESXi for triage analysis: 1 ● Conduct analysis to identify indicators of compromise (IOCs), determine the scope and Intrusion Path of the incident, and identify affected systems and data that may have been viewed, accessed and/or acquired by the threat actor(s).
● Perform forensic data collection and analysis on relevant endpoints, servers, cloud environments, and network traffic to understand threat actor actions, intrusion pathing, and persistence mechanisms.
● Assist the Client in implementing containment and actor ejection strategies to limit further unauthorized access.
● Provide strategic guidance for containment, lead on removal of identified malicious software (malware) from Client environment and addressing root cause for the intrusion.
● Upon request from Client and/or Counsel, Cybereason will deliver a written report of analysis and findings.
Email Tenant (M365) Triage
● Cybereason will work with Client to gain secure, remote access to the relevant Microsoft 365 tenant (up to one (1)), including relevant logs, and required settings for investigation purposes.
o Cybereason will conduct forensic evidence collection and triage analysis to identify evidence of suspicious or unauthorized account access, mailbox rule creation or alterations and forwarding rules, unauthorized third party mail apps, and evidence indicative of $35,000.00-
$45,000.00
Docusign Envelope ID: 2E5B35F3-5906-4E59-9985-B908E4B0840B rev 2025.Jan.31
unauthorized access to the contents of email accounts or OneDrive/SharePoint stored user data.
o Forensic acquisition of log data is limited to thirty (30) days preceding the earliest suspected or confirmed date of unauthorized access. o If unauthorized access is identified within the email environment, Cybereason will provide the list of account(s) and triage findings, and will submit a Phase and Budget Uplift for completing the analysis and providing Law Firm and/or Client with a Factual Investigative Summary (FIS).
Services Fees authorized under this SOW as of the Effective Date (“Budget”) $45,000.00 The Budget is based on an estimation of the time and effort required to provide the Services. Accordingly, Cybereason will provide the Services until the Budget amount is reached (based on the calculation method set out in Section 3 below), at which point the Parties must agree on any increase in the Budget. If no agreement is reached, then Cybereason shall cease to provide the Services without any further obligation.
2. Schedule
The scheduling of Services under this SOW will be as mutually agreed to by all Parties.
3. Fee Schedule
The Services (as set out in Section 1 above) will be billed according to the rate tables below, unless otherwise specified herein (“Fee(s)”).
Services Fee Schedule
Item Rate
Consulting Services $325 per hour
In addition to the Services Fees and not included in the Budget, the following additional fees apply:
Additional Fees
Item Rate
Travel Time (time in transit) 50% of Hourly Rate
Secure File Transfer Service $500
Expenses (e.g., travel, incidentals, and other pass through expenses) As incurred
4. Invoicing & Payment
In addition to the fees identified above, Client agrees to reimburse Cybereason for expenses that are directly attributable to the work performed under this SOW including, but not limited, to travel, living expenses, computer storage media, postage/courier services, and other expenses resulting from the work performed under this SOW, at the rate/method set out in Section 3 above.
Cybereason will invoice Client monthly, with the invoice due and payable within thirty (30) calendar days of the date of the invoice, in accordance with the information set out in Addendum A (Invoicing Information).
Client agrees that payment of all invoices under this SOW are the sole responsibility of Client. Although Cybereason acknowledges that some or all its Fees may be paid (either directly or via reimbursement) by a party other than Client, Docusign Envelope ID: 2E5B35F3-5906-4E59-9985-B908E4B0840B rev 2025.Jan.31
such as by an insurance entity or through Law Firm, Cybereason does not release Client from its payment obligations under this SOW or the Agreement until the Fees are actually paid.
Client confirms that its signature of this SOW shall constitute its binding commitment to purchase and pay for the Services and that no additional purchase order is necessary. Any purchase order which may subsequently issued by Client is for its convenience.
[SIGNATURES ON FOLLOWING PAGE]
Docusign Envelope ID: 2E5B35F3-5906-4E59-9985-B908E4B0840B rev 2025.Jan.31
IN WITNESS WHEREOF THE PARTIES HAVE AFFIXED THEIR SIGNATURE HERETO Cybereason Inc.
Signature: /s3/
Name: /n3/
Title: /t3/
Date: /d3/
City of Paramount, CA
Signature: /s1/
Name: /n1/
Title: /t1/
Date: /d1/
To the extent a law firm is engaging Cybereason on
behalf of client:
Constangy
Signature: /s2/
Name: /n2/
Title: /t2/
Date: /d2/
Docusign Envelope ID: 2E5B35F3-5906-4E59-9985-B908E4B0840B 12/19/2025
Global Head, DFIR
Devon Ackerman
Donna Maddux
Partner
12/19/2025
Assistant City Manager
Grissel Chavez
12/19/2025
rev 2025.Jan.31
Addendum A – Invoicing Information
Where should Cybereason send invoices?
Please include all addresses where an invoice should be sent, including Accounts Payable, organizational contacts, insurance or legal contacts, etc.
Email Address(es)
/IEA1/ /IEA2/
/IEA3/ /IEA4/
/IEA5/ /IEA6/
Client Billing Contact
Who can we contact to raise questions about billing and invoicing? Usually this is someone from procurement, finance, or your accounts payable team.
Full Name /BCFN1/
Email(s) /BCEA1/
Phone /BCPN1/
Address /BCA1/
Accounts Payable Portal /BCAPP1/
Purchase Order Number /BCPON1/
Cyber Insurance (if applicable)
Have you filed a claim with cyber insurance? If so, fill out the information so we can be sure to route and mark invoices appropriately.
Primary Carrier /CIPC1/
Claims Contact Name /CICCN1/
Claims Contact Email /CICCE1/
Claims Contact Phone /CICCP1/
Claim Number /CICN1/
Insurance Broker /CIIB1/
Broker Contact Name /CIBCN1/
Broker Contact Email /CIBCE1/
Counsel (if applicable)
Docusign Envelope ID: 2E5B35F3-5906-4E59-9985-B908E4B0840B rev 2025.Jan.31
Law Firm /CLF1/
Primary Contact Name /CPCN1/
Docusign Envelope ID: 2E5B35F3-5906-4E59-9985-B908E4B0840B To: Honorable City Council
From: John Moreno, City Manager
By: John King, AICP, Planning and Building
Director
Leslie A. Corrales, Assistant Planner
Date: January 13, 2026
SUBJECT: DRIVEWAY EXPANSION PROGRAM GUIDELINES
BACKGROUND
In 2022, the City Council approved the Driveway Expansion Pilot Program which focused on the neighborhood of Paramount bounded by Garfield Avenue on the west, Façade Avenue on the east, Racine Avenue on the south, and Somerset Ranch Road on the north.
On December 16, 2025, the City Council reviewed a report regarding a citywide version of the Driveway Expansion Program. Staff requested input regarding the Driveway Expansion Program guidelines, approval of the guidelines, and direction to implement the program. The Driveway Expansion Program as designed would reimburse up to 12 homeowners a maximum of $3,000 upon completion of a driveway widening project. A copy of the staff report is attached.
DISCUSSION
At the December 16, 2025 meeting, the City Council approved the citywide Driveway Expansion program with minor changes to the proposed guidelines. The revised guidelines are included for final ratification.
FISCAL IMPACT
The proposed Driveway Expansion Program will have a fiscal impact of $36,000, which is fully budgeted in the FY 2026 budget.
Fund Division Account Description Amount
112 Residential 112-2122-5284 Driveway Program $36,000
Agenda Report January 13, 2026
DRIVEWAY EXPANSION PROGRAM GUIDELINES 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 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
Approve the Driveway Expansion Program guidelines.
To: Honorable City Council
From: John Moreno, City Manager
By: John King, AICP, Planning and Building
Director
Leslie Corrales, Assistant Planner
Date: December 16, 2025
SUBJECT: DRIVEWAY EXPANSION PROGRAM GUIDELINES
BACKGROUND
With a population of 52,546 within 4.8 square miles, Paramount’s density of 10,947 residents per square mile is one of the highest in the United States. Combined with high rates of car and other vehicle use (according to Census data, 87.1% of residents drive themselves to work), street parking supply is severely challenged.
In 2022, the City Council approved the Driveway Expansion Pilot Program which focused on the neighborhood of Paramount bounded by Garfield Avenue on the west, Façade Avenue on the east, Racine Avenue on the south, and Somerset Ranch Road on the north. The findings of the pilot program provided insight into the recommendations and requirements that should be permitted and prioritized. During the Pilot Program, eight homeowners participated freeing up approximately eight street parking spaces. The pilot program established a framework for best practices, ensuring that future implementation is both efficient and compliant with regulatory standards.
DISCUSSION
As an incentive to add more off-street parking, the Driveway Expansion Program as designed would reimburse up to 12 homeowners a maximum of $3,000 upon completion of a driveway widening project. In order to find a balance between providing additional parking areas and maintaining landscaped front yards (meeting goals for sustainability, water capture, aesthetics, and property values), guidelines similar to the pilot program are proposed. Citywide program availability is outlined in the following summary of guidelines.
• Properties be zoned R-1 (Single-Family Residential) or R-2 (Medium-Density Residential)
• Properties with a street length or frontage of 40 feet or less may allow for a driveway of up to 18 feet.
• Properties with a street length or frontage of 41 feet to 60 feet may allow for a driveway of up to 22 feet.
• Properties with a street length or frontage of 60 feet or more may allow for a driveway of up to 30 feet.
Agenda Report December 16, 2025
Driveway Expansion Program Page 2
• Expanded driveways generally must maintain at least five feet on the sides of the property for landscaped planters. As an exception, driveways on properties with less than 40 feet do not have to maintain this setback.
• Adjacent properties shall not have connecting driveways. They must be broken up by landscape planters or a 42-inch front fence.
• The application must be signed by all owners of a property. • The application must include a diagram or aerial photo with clearly identified measurements of the existing driveway and the proposed expansion. • Expansion of driveway approaches, defined as driveway entries (or ”driveway aprons“) located within the public right-of-way, are not included in the program. • The Planning and Building Director or designee may require replacement landscaping such as a tree to be planted to mitigate the loss of existing landscaped areas. • A minimum area of 100 square feet of concrete surface is required for reimbursement. • An expanded driveway area shall match the existing driveway material for a consistent appearance. Asphalt and decomposed granite are not reimbursable materials. • In order for reimbursement to occur, all work must begin after authorization by the Planning and Building Department.
• Planning and Building Department staff will inspect completed work to ensure all requirements are met before reimbursement is authorized. • All work must be completed in a professional manner, and the property must be in “broom clean” condition.
• All other R-1 (Single-Family Residential) and R-2 (Medium Density Residential) zone requirements are applicable.
FISCAL IMPACT
The proposed Driveway Expansion Program will have a fiscal impact of $36,000, which is fully budgeted in the FY 2026 budget.
Fund Division Account Description Amount
112 Residential 112-2122-5284 Driveway Program $36,000
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
Review and provide input regarding the Driveway Expansion Program guidelines, approve the guidelines, and direct staff to implement the program.
DRIVEWAY EXPANSION PROGRAM GUIDELINES
Guidelines for the Driveway Expansion Program meet a balance between providing additional parking areas in residential neighborhoods and maintaining landscaped front yards (supporting goals for sustainability, water capture, aesthetics, and property values).
Funding
As an incentive to add more off-street parking, the Driveway Expansion Program reimburses homeowners a maximum of $3,000 upon completion of an approved driveway widening project.
Guidelines
• Zoning. A property must be zoned R-1 (Single-Family Residential) or R-2 (Medium Density Residential) on the official Paramount Zoning Map. • Driveway width.
• Properties with a street length or frontage of 40 feet or less may allow for a driveway of up to 18 feet.
• Properties with a street length or frontage of 41 feet or more may allow for a driveway of up to 22 feet.
• Property Sides. Expanded driveways generally must maintain at least five feet on the sides of the property for landscaped planters. As an exception, driveways on properties with less than 40 feet do not have to maintain this setback. • Adjacent Driveways. Adjacent properties shall not have connecting driveways. They must be broken up by landscape planters, a 42-inch front fence, or a different element at the discretion of the Planning and Building Director or designee clearly delineating separate properties.
• Application.
• A complete application as provided by the Planning and Building Department must be submitted.
• The application must be signed by all owners of a property. • The application must include a diagram or aerial photo with clearly identified measurements of the existing driveway and the proposed expansion. • Driveway Aprons. The primary driveway expansion involves the driveway on the private property. Expansion of driveway approaches, defined as driveway entries (or
DRIVEWAY EXPANSION PROGRAM
2 ”driveway aprons“) located within the public right-of-way, may be included in the program as an option as funding is feasible.
• Landscape Requirements. The Planning and Building Director or designee may require replacement landscaping such as a tree to be planted to mitigate the loss of existing landscaped areas.
• Minimum Area. A minimum area of 100 square feet of concrete surface is required for application approval and reimbursement.
• Consistency and Materials. An expanded driveway area shall match the existing driveway material for a consistent appearance. Asphalt and decomposed granite are not reimbursable materials.
• Authorization. In order for reimbursement to occur, all work must begin after authorization by the Planning and Building Department through an approved application.
• Final Inspection. Planning and Building Department staff will inspect completed work to ensure all requirements are met before reimbursement is authorized. • Work Quality. All work must be completed in a professional manner, and the property must be in “broom clean” condition.
• Zoning Requirements. All other R-1 (Single-Family Residential) and R-2 (Medium Density Residential) zone requirements are applicable.
To: Honorable City Council
From: John Moreno, City Manager
By: Margarita Matson, Public Safety Director
Date: January 13, 2026
SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARAMOUNT AMENDING CHAPTERS 8.04.010 AND 8.04.040 OF THE PARAMOUNT
MUNICIPAL CODE REGARDING INCORPORATION OF THE LOS
ANGELES COUNTY HEALTH AND SAFETY CODE
BACKGROUND
Since incorporation, the City of Paramount has utilized the Los Angeles County Health Department for inspections and other services related to health and sanitation. Chapters
8.04.010 and 8.04.040 of the Paramount Municipal Code incorporate by reference the Los Angeles County Health and Safety Code as the Health Code for the City. To ensure that we are utilizing the most current version of the County Code, we annually readopt it by reference.
DISCUSSION
Prior to adopting by reference a provision of the Los Angeles County Code, the City Council must perform a first reading of the title of the proposed ordinance and set a date for a public hearing.
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.
RECOMMENDED ACTION
Introduce Ordinance No. 1214 and set a public hearing date of February 10, 2026, at 6:00 p.m. for consideration of adoption of Ordinance No. 1214.
CITY OF PARAMOUNT
LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE NO. 1214
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PARAMOUNT AMENDING CHAPTERS 8.04.010 AND 8.04.040 OF THE
PARAMOUNT MUNICIPAL CODE REGARDING INCORPORATION OF
THE LOS ANGELES COUNTY HEALTH AND SAFETY CODE
THE CITY COUNCIL OF THE CITY OF PARAMOUNT DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapters 8.04.010 and 8.04.040 of the Paramount Municipal Code are hereby amended in their entirety as follows:
8.04.010 County Health Code Adopted.
Title 11 of the Los Angeles County Code, entitled "Health and Safety Code," being a code regulating public health and sanitation, is hereby adopted by reference as the Health Code of the City.
8.04.40 Penalty.
Not withstanding any other provision of this chapter, violation of any of the provisions of this chapter incorporating the County Health Code and portions of the County Consumer Protection Code is punishable as a misdemeanor by a fine of not more than $500.00 or by imprisonment in the County Jail for not more than six months, or both. Each day during any portion of which any violation herein is committed or continued to be permitted makes such violation a separate chargeable offense.
SECTION 2. 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 3. 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.
ORDINANCE NO. 1214
February 10, 2026, Page 2
PASSED, APPROVED, and ADOPTED by the City Council of the City of Paramount this 10th day of February 2026.
Peggy lemons, Mayor
ATTEST
Heidi Luce, City Clerk
To: Honorable City Council
From: John Moreno, City Manager
By: Margarita Matson, Public Safety Director
Date: January 13, 2026
SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARAMOUNT AMENDING CHAPTERS 10.04.010 AND 10.04.020 OF THE PARAMOUNT
MUNICIPAL CODE REGARDING INCORPORATION OF THE LOS
ANGELES COUNTY TRAFFIC CODE
BACKGROUND
Chapters 10.04.010 and 10.04.020 of the Paramount Municipal Code incorporate by reference the Los Angeles County Traffic Code as the Traffic Code for the City. To ensure that we are utilizing the most current version of the County Code, we annually readopt it by reference.
DISCUSSION
Prior to adopting by reference a provision of the Los Angeles County Code, the City Council must perform a first reading of the title of the proposed ordinance and set a date for a public hearing.
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.
RECOMMENDED ACTION
Introduce Ordinance No. 1215 and set a public hearing date of February 10, 2026, at 6:00 p.m. for consideration of adoption of Ordinance No. 1215.
CITY OF PARAMOUNT
LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE NO. 1215
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PARAMOUNT AMENDING CHAPTERS 10.04.010 AND 10.04.020 OF
THE PARAMOUNT MUNICIPAL CODE REGARDING
INCORPORATION OF THE COUNTY TRAFFIC CODE
THE CITY COUNCIL OF THE CITY OF PARAMOUNT DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapters 10.04.010 and 10.04.020 of the Paramount Municipal Code are hereby amended in their entirety as follows:
10.04.010 County Traffic Code Adopted.
Title 15 of the Los Angeles County Code, entitled "Vehicles and Traffic," being a code regulating traffic upon public highways, is hereby adopted by reference as the Traffic Code of the City.
10.04.020 Penalties - Continuing Violations.
A. The first and second violation of any provision of this title may be cited as an infraction or punished as a misdemeanor. The third such violation shall be punished as a misdemeanor by a fine not exceeding $500 or imprisonment for a term not exceeding six months, or by both such fine and imprisonment. Such violations may also be redressed by civil action.
B. Each day that any violation of this title continues shall constitute a separate offense.
SECTION 2. 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 3. 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.
ORDINANCE NO. 1215
February 10, 2026, Page 2
PASSED, APPROVED, and ADOPTED by the City Council of the City of Paramount this 10th day of February 2026.
Peggy lemons, Mayor
ATTEST
Heidi Luce, City Clerk
To: Honorable City Council
From: John Moreno, City Manager
By: Yecenia Guillen, Community Services
Director
Date: January 13, 2026
SUBJECT: AMENDMENT NO. 1 TO THE AGREEMENT WITH HAMILTON ARCHITECTS, INC.
BACKGROUND
As part of the Downtown Revitalization Project, the City researched ways to rehabilitate and preserve the Paramount Saw Property for a Historical Museum, Community Meeting Room, and a commercial restaurant space to support and create a vibrant community gathering space. Consistent with this vision, the City entered into an agreement with Paramount City Investors, LLC Development Group, for the development of the Paramount Saw Property. As part of the City’s contribution to development of the Paramount Saw building, the City was allocated 3,000 square feet of space for the inclusion of a Paramount history museum and community meeting room space.
DISCUSSION
Hamilton Architects, Inc. (Hamilton) was engaged by Paramount City Investors, LLC Development Group (Paramount City Investors), for the conceptual design of the food court restaurant space, and outdoor areas at the Paramount Saw Development. Given how closely related the spaces are to each other in the building, the design of the City’s Historical Museum and Community Meeting Room space was best suited for Hamilton to complete as well, to ensure seamless integration into the project.
Currently, City staff, Hamilton, and Paramount City Investors have been working together to design the elements, and the construction plans for spaces that will be located within the Paramount Saw Building. The original agreement with Hamilton Architects, Inc. was approved by the City Council in December 2024 to provide design and architectural services for the Historical Museum and Community Meeting Room spaces. At this time, it has been determined that additional time is required to complete the design phase and finalize construction documents of the project.
To accommodate the remaining project schedule and ensure completion of all required design deliverables, an amendment to the existing agreement with Hamilton is necessary to extend the contract term through October 1, 2026. This will allow for ample time to finalize the project deliverables through the construction phase of the project. The City is also in need of Hamilton’s attendance for project meetings over the next 6-9 months to Agenda Report January 13, 2026
AMENDMENT NO. 1 – HAMILTON ARCHITECTS, INC. Page 2
ensure effective management of the design deliverables phase. At the time of the initial agreement, these additional meetings were not included. However, as design has progressed, and noting the unique project scope, it is beneficial to schedule these meetings on a more consistent basis to ensure a smooth design process.
The current contract with Hamilton originally allocates eight (8) meetings during the construction phase of the project. Due to the evolving project requirements, it has become necessary to reallocate some of these meetings to the design phase to ensure proper coordination and decision-making before construction begins. By shifting some of these meetings, there are no additional costs associated with the execution of the contract Amendment with Hamilton. The City and Hamilton will work together to determine the exact number of meetings to be shifted from the construction phase to the design phase of the project.
Additionally, the City has engaged Willdan Engineering (Willdan) services to manage the project during the construction phase. By engaging Willdan during the construction phase of the project, it is anticipated that fewer meetings will be needed with Hamilton during that phase. This adjustment allows for more efficient use of the allocated meeting time and ensures that project discussions are focused where they are most needed.
FISCAL IMPACT
Funding for the Paramount Saw Property Historical Museum and Community Meeting Room Project has been appropriated in the FY 2025-26 budget in the Capital Improvement Projects Fund, CIP Project No. 9550. There is no fiscal impact associated with the approval of Amendment No. 1 with Hamilton Architects Inc., at this time.
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. 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
Approve and authorize the City Manager or his designee to execute Amendment No. 1 to the agreement with Hamilton Architects, Inc., extending the term through October 1, 2026, for the completion of the design services and construction documents for the Paramount Saw Historical Museum/Community Meeting Room Project (City Project No. 9550). 1/2025 Version 1.0
FIRST AMENDMENT TO AGREEMENT WITH HAMILTON ARCHITECTS, INC.
WHEREAS, the CITY OF PARAMOUNT (“City”) and HAMILTON ARCHITECTS INC. (“Architect”) entered into that certain agreement entitled “AGREEMENT FOR DESIGN AND
ARCHITECTURAL SERVICES FOR THE PARAMOUNT SAW PROPERTY COMMUNITY MEETING ROOMS AND HISTORICAL MUSEUM SPACE,” effective on December 18, 2024, hereinafter referred to as “Original Agreement”; and
WHEREAS, the City has a need for Architect to continue architectural design and construction drawing services; and
WHEREAS, the City and Architect have determined it is in their mutual interest to amend certain terms of the Original Agreement.
NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:
1. Pursuant to Section 5 of the Original Agreement the Term of the Agreement was extended on July 11, 2025, via an administrative extension for an additional six (6) months through January 1, 2026; and
2. The term of the Agreement shall now be extended for an additional nine (9) months through October 1, 2026.
3. Exhibit A, Article 2, Phase 6 of Original Agreement shall be amended to include an updated scope reflecting changes to the schedule of project meetings, as more fully described in Exhibit A-1, attached hereto and incorporated herein by this reference.
4. This Amendment shall be effective on January 14, 2026.
5. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control.
6. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below.
CITY OF PARAMOUNT HAMILTON ARCHITECTS, INC.
By: By:
John Moreno, City Manager John P. Hamilton, AIA, President Date: ______________________________ Date: ____________________________ 1/2025 Version 1.0
ATTEST:
By:
Heidi Luce, City Clerk
APPROVED AS TO FORM:
By:
Nicholas R. Ghirelli, City Attorney
1/2025 Version 1.0
EXHIBIT A-1
12240 Venice Blvd #25 Los Angeles CA 90066
310.398.1500
www.hamiltonarchitects.net
CHANGE ORDER FORM
DATE:
January 8, 2026
CLIENT NAME:
City of Paramount
16400 Colorado Blvd
Paramount, CA 90723
ATTN: Veronica Ortiz
PROJECT NAME:
PARAMOUNT SAW PROPERTY COMMUNTIY MEETING ROOMS AND HISTORICAL MUSEUM SPACE ORIGINAL CONTRACT DATE:
December 18, 2024
CHANGE ORDER #:
HA002
REQUESTOR:
City of Paramount
DESCRIPTION OF REVISED SERVICES:
Revised Exhibit A, Article 2, Phase 6 to say the following:
6. Phase 6 – Pre-Construction Meetings & 4 Construction Observation (Fixed Fee with Additional Meetings billed at hourly rates) Pre-Construction Meetings & Construction Observation shall include • Architect will participate in no more than 12 two-hour Meetings via ZOOM during the Pre-Construction Phase. (Additional Pre-Construction Meetings shall be billed hourly + expenses at the prevailing rates.) • Architect will participate in not more than 4 site visits during Construction Phase. (Additional Construction Observation Meetings shall be billed hourly + expenses at the prevailing rates.)
• Architect will be available for questions and consultation during construction from selected contractor. • Architect will be available to review contractor’s billing & change orders. • ARCHITECT recommends regular site visits during the period of construction.
ADDITIONAL COST TO ORIGINAL CONTRACT:
$0.
APPROVALS:
Signature: Date:
Print Name:
To: Honorable City Council
From: John Moreno, City Manager
By: Lana Dich, Finance Director
Date: January 13, 2026
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR FISCAL YEAR ENDED JUNE 30, 2025
BACKGROUND
Each year, the City engages an independent financial auditor to audit the City’s financial statements, known as the Annual Comprehensive Financial Report (ACFR). The purpose of the City’s ACFR is to provide independently audited relevant financial information to the City Council, citizens, staff, grant entities, creditors, bond investors, rating agencies, and other concerned readers.
The City’s financial statements contained within the ACFR are presented in conformity with generally accepted accounting principles (“GAAP”) and audited in accordance with generally accepted governmental auditing standards (“GAGAS”). The statements are reported on a fiscal year basis beginning July 1st and ending June 30th and have been audited by an independent firm of certified public accountants, The Pun Group LLP (“Pun Group”) to provide reasonable assurance that the financial statements fairly present the City’s financial condition in all material respects.
As required by GAGAS, the Pun Group has also issued a Report on Internal Control and Compliance and an Audit Communication Letter summarizing the results of the audit.
These reports are used to communicate certain matters to the City Council. The ACFR 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, 2025, summarizes the financial activities of the City and its component units (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).
ANALYSIS
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).
Agenda Report January 13, 2026
ACFR FOR FISCAL YEAR ENDED JUNE 30, 2025 Page 2
The City’s General Fund, including the Capital Projects Fund, reported a combined fund balance of $52.5 million at June 30, 2025, an increase of approximately $2.0 million from the prior year. The increase was primarily attributable to one-time revenues, including a more than $1.0 million increase in the City’s investment portfolio, $652,000 proceeds from the sale of the Firehouse, and $265,700 of revenues received from legal settlements.
During the fiscal year, the City applied its Fund Balance Policy in the prescribed order, resulting in a year-end committed balance of $25.4 million for operating reserves, representing 50% of the FY 2024–25 adopted General Fund operating expenditure budget, and $3.9 million for economic uncertainty, representing 8% of actual FY 2024– 25 General Fund expenditures. Although the economic uncertainty reserve was slightly below the 10% policy target, overall reserve levels exceed minimum ranges commonly referenced by the Government Finance Officers Association (GFOA) and provide flexibility to address economic volatility and emergency needs.
General Fund revenues totaled approximately $48.2 million, an increase of $1.0 million (2%) from the prior year, while expenditures totaled approximately $47.5 million, an increase of $3.6 million (8%). Expenditure growth outpaced revenue growth, reflecting continued inflationary pressures and rising service costs.
The Other Grants Special Revenue Funds accounted for approximately 26% of total governmental revenues and supported capital projects, street maintenance, infrastructure, and community services. In FY 2025, operating contributions and grants totaled $10.5 million in FY 2025, compared to $10.2 million in the prior year. Capital contributions and grants increased to $10.1 million from $5.8 million, primarily reflecting the timing and receipt of grant-funded capital projects. Ongoing funding sources included State Gas Tax and Transit Tax revenues, along with several one-time State grants for park-related capital improvements.
The Water Enterprise Fund reported a decrease in net position of $1.1 million, from $16.8 million to $15.7 million. Total revenues increased to approximately $10.4 million, while total expenses increased to $11.5 million, resulting in a decrease in net position for the fiscal year. The negative unrestricted net position was primarily attributable to delays in bringing Well No. 16 into operation, and management has developed strategies to improve the Fund’s financial position over time.
FUTURE OUTLOOK
In developing the FY 2025–26 budget, the City considered continued inflationary pressures on operating costs, ongoing uncertainty in regional and statewide economic conditions, and rising costs for contracted services, utilities, and employee benefits. While revenue growth is expected to remain moderate, expenditure growth is projected to continue to outpace revenues absent structural adjustments.
Agenda Report January 13, 2026
ACFR FOR FISCAL YEAR ENDED JUNE 30, 2025 Page 3
Long-term financial projections indicate that this trend, if unaddressed, could result in a structural imbalance over time. Accordingly, the City will continue to evaluate revenue strategies, expenditure controls, and long-range financial planning measures to maintain fiscal sustainability while preserving service levels.
DISCUSSION
The City’s General Fund reported positive operating results in FY 2024–25 due to onetime revenue sources, while the Water Enterprise Fund experienced negative operating results. As the City looks ahead, several key fiscal considerations warrant attention:
1) Infrastructure Funding: Sustained investment in infrastructure will remain critical in the coming years. Although the City Council and management have established dedicated funds and accounts for this purpose, maintaining adequate and consistent funding levels on an ongoing basis will continue to present a challenge.
2) Economic Sensitivity: The City remains highly sensitive to economic conditions due to its reliance on sales tax revenues, which tend to fluctuate more rapidly during economic downturns than more stable sources such as property taxes. Combined with uncertainty surrounding inflation, interest rates, and broader economic trends, this exposure increases volatility in future revenue projections. Accordingly, the City continues to employ conservative budgeting practices and prioritize reserve accumulation to mitigate the impacts of economic cycles.
3) Tariff-Related Uncertainty: Emerging tariff policies introduce additional uncertainty into the economic outlook and complicate forecasting of future operating costs, particularly for materials, utilities, and contracted services.
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 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 (ACFR) for Fiscal Year (FY) ending June 30, 2025, and related communications.
CITY OF PARAMOUNT, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2025
Prepared by the Finance Department
Lana Dich, Finance Director
Anthony Martinez, Financial Services Manager
Gustavo Medrano, Accounting Manager
Joanne Cha, Senior Accountant
Roster of Officials
City Council
Peggy Lemons, Mayor
Brenda Olmos, Vice Mayor
Isabel Aguayo, Councilmember
Annette C. Delgadillo, Councilmember
Vilma Cuellar Stallings, Councilmember
City Attorney
Nicholas Ghirelli
City Manager
John Moreno
Assistant City Manager
Grissel Chavez
City Clerk
Heidi Luce
Community Services Director
Yecenia Guillen
Finance Director
Lana Dich
Planning and Building
Director
John King
Public Safety Director
Margarita Matson
Public Works Director
Adriana Figueroa
City of Paramount
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
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 Auditor’s 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 ........................................................................................................................... 33 Statement of Revenues, Expenses, and Changes in Fund Net Position ...................................................... 34 Statement of Cash Flows ............................................................................................................................ 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 .............................................................................................................. 47 City of Paramount
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):
Budgetary Comparison Schedules:
General Funds ........................................................................................................................................................... 87 Other Grants Special Revenue Funds ....................................................................................................................... 88 Notes to the Budgetary Comparison Schedules .............................................................................................................. 89 Schedule of Proportionate Share of the Net Pension Liability ....................................................................................... 90 Schedule of Contributions – Pensions ............................................................................................................................ 92 Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios ......................................... 94 Schedule of the Contributions – Other Postemployment Benefits ................................................................................. 96 Supplementary Information:
Nonmajor Governmental Funds:
Combining Balance Sheet - Nonmajor Governmental Funds ................................................................................ 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ....................................................................................... 110 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:
Community Development Block Grant Special Revenue Fund ...................................................................... 116 HOME Partnership Act Special Revenue Fund .............................................................................................. 117 HOME American Rescue Plan. ....................................................................................................................... 118 Paramount Housing Authority Special Revenue Fund .................................................................................... 119 After School Education and Safety Special Revenue Fund ............................................................................ 120 State Gas Tax Special Revenue Fund .............................................................................................................. 121 Traffic Safety Special Revenue Fund .............................................................................................................. 122 Waste Reduction Fees Special Revenue Fund ................................................................................................ 123 AB2766 Subvention Funds Special Revenue Fund ......................................................................................... 124 Disability Access and Education Fees Special Revenue Fund ........................................................................ 125 SB1 Road Maintenance & Rehabilitation Account Special Revenue Fund .................................................... 126 Proposition A Transit Tax Special Revenue Fund .......................................................................................... 127 Proposition C Transit Tax Special Revenue Fund .......................................................................................... 128 Measure R Transit Tax Special Revenue Fund ............................................................................................... 129 Measure M Transit Tax Special Revenue Fund .............................................................................................. 130 Measure W Safe Clean Water Special Revenue Fund .................................................................................... 131 Measure A Parks Special Revenue Fund......................................................................................................... 132 Sewer Reconstruction Fees Special Revenue Fund ......................................................................................... 133 Public Art Fees Special Revenue Fund ........................................................................................................... 134 Public Access Fees Special Revenue Fund ..................................................................................................... 135 Storm Drain Fees Special Revenue Fund ........................................................................................................ 136 General Plan Fees Special Revenue Fund ....................................................................................................... 137 Service Assessments Special Revenue Fund ................................................................................................... 138 Community Benefit Agreement Special Revenue Fund ................................................................................. 139 City of Paramount
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
Page
STATISTICAL SECTION (UNAUDITED)
Table 1 - Net Position by Component ............................................................................................................ 144 Table 2 - Changes in Net Position .................................................................................................................. 146 Table 3 - Fund Balances of Governmental Funds .......................................................................................... 150 Table 4 - Changes in Fund Balances of Governmental Funds ....................................................................... 152 Table 5 - Taxable Sales by Category .............................................................................................................. 154 Table 6 - Direct and Overlapping Sales Tax Rates ........................................................................................ 157 Table 7 - Principal Sales Tax Producers ......................................................................................................... 158 Table 8 - Ratios of Outstanding Debt by Type ............................................................................................... 159 Table 9 - Ratios of General Bonded Debt Outstanding .................................................................................. 160 Table 10 - Direct and Overlapping Governmental Activities Debt ................................................................ 161 Table 11 - Legal Debt Margin Information .................................................................................................... 162 Table 12 - Pledged-Revenue Coverage .......................................................................................................... 164 Table 13 - Demographic and Economic Statistics ......................................................................................... 165 Table 14 - Principal Employers ...................................................................................................................... 166 Table 15 - Full-time Equivalent City Employees by Function ....................................................................... 167 Table 16 - Operating Indicators by Function ................................................................................................. 168 Table 17 - Capital Asset Statistics by Function .............................................................................................. 170 This page intentionally left blank.
i
PEGGY LEMONS
Mayor
BRENDA OLMOS
Vice Mayor
ISABEL AGUAYO
Councilmember
ANNETTE C. DELGADILLO
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, 2025. 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.gov
December 30, 2025
ii
The Independent Auditor’s 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 cash flows as of June 30, 2025. 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 52,000 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. To enhance operational stability and strengthen preparedness for economic downturns and catastrophic emergencies, the City adopted the Fund Balance Policy. The Government Finance Officers Association (GFOA) recommends that local governments maintain unrestricted reserves of at least 16% – 17% of annual operating revenues or expenditures, equivalent to approximately two months of operating costs. As of fiscal year ending June 30, 2025, the City committed $25.4 million for operating reserve representing 50% of the FY 2024-25 adopted General Fund operating expenditure budget, and $3.9 million for economic uncertainty representing 8% of the actual FY 2024-25 General Fund expenditures – slightly below the 10% policy target. However, the combined reserve level of 58% continues to demonstate the City’s strong commitment to fiscal responsibility and long-term 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.
FUND BALANCE
POLICY
CASH
MANAGEMENT
POLICIES &
PRACTICES
iv
The investment policy was certified by the California Municipal Treasurers Association 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 2025, the City posted investment earnings of $3.1 million.
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 80-81) describes in depth the premium and liability coverage of the members.
As of June 30, 2025, the General Fund balance is $52.5 million, which is an increase of $2 million from the prior year due to increases in revenues for specific purposes; and $2.1 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 82.
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.
Capital Improvement Completion
During FY 2024–25, the City completed the construction of numerous street improvement projects, including street and sidewalk repairs and installations, traffic signal improvements—including installation of the HAWK pedestrian crossing system at Orange Avenue and Myrrh Street—and continued resurfacing of neighborhood streets.
Deferred maintenance and structural improvements were also completed during the fiscal year, including Dills Park irrigation upgrades, installation of an electric vehicle charging station at Progress Park, Friday Night Market lighting improvements, Veterans Memorial renovations, and Spane Park facility improvements.
RISK
MANAGEMENT
ACCOMPLISHMENTS &
OUTLOOK
v
New Developments/Continuing Programs
Looking ahead to FY 2025–26, the City has budgeted $28.1 million for capital improvement projects, including $10.3 million for continuing projects and $17.8 million for new initiatives. These investments support the maintenance and enhancement of transportation infrastructure, improvements to City facilities, and advancement of sustainability and utility system modernization.
Planned projects include continued street and sidewalk improvements, upgrades to Civic Center and City Hall facilities, construction of Phase 2 (Section 1) of the West Santa Ana Branch bikeway trail, and continued implementation of sustainability initiatives such as electric vehicle charging infrastructure and Advanced Metering Infrastructure (AMI) technology.
STAR Program
During FY 2024-25, operational responsibilities had shifted 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
The City of Paramount prides itself on delivering a high level of service at a reasonable cost. We continuously invest in efforts to keep our water production facilities and distribution infrastructure in sound and reliable condition.
A major milestone is the anticipated completion of the City’s new water well—Well No. 16—located at Garfield Avenue and Jackson Street. The project began in FY 2015– 16, and the City secured a $6.7 million loan from the California Infrastructure and Economic Development Bank (IBank) to fund the remaining phases of design and construction. This investment is especially critical in California, where reliance on imported water has become increasingly expensive and less dependable. Once fully operational, the new well will significantly enhance the City’s water supply reliability and move us closer to self-sufficiency. As of July 2025, Well No. 16 was placed into service, and the City anticipates a substantial reduction in purchased water costs in FY 2025–26.
In addition, in 2024 the City commenced a citywide replacement of outdated water meters with Advanced Metering Infrastructure (AMI) technology. AMI meters provide real-time usage data through a digital communication system that links water customers, the City’s data management platform, and utility staff. This modernization effort will improve customer service, enhance leak detection capabilities, and support more efficient water management practices. The project was completed in late 2025.
Also, in our continued effort to proactively maintain and improve the City’s water system, the City Council approved a multi-year water rate adjustment that took effect January 1, 2022. The rate increases are phased in gradually over a five-year period, with the final adjustment scheduled for January 1, 2026. Despite these incremental increases, Paramount’s water rates remain among the lowest compared to the 14 neighboring water agencies.
vi
The City also initiated another water rate study in late 2025 at the request of IBank to ensure sufficient reserves are maintained and to remain in full compliance with the loan agreement for the construction of Well No. 16.
Long-Term Financial Outlook
Long-term financial projections indicate that, absent corrective action, expenditure growth may outpace revenue growth over time, resulting in potential structural imbalances. The City will continue to evaluate revenue strategies, expenditure controls, and long-range financial planning measures to promote fiscal sustainability while maintaining essential service levels.
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, 2024. 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 Lana Dich, Finance Director
CERTIFICATES
OF
ACHIEVEMENT
ACKNOWLEDGEMENTS
vii
Roster of Officials
City of Paramount, CA
on June 30, 2025
CITY COUNCIL
Peggy Lemons, Mayor
Brenda Olmos, Vice Mayor
Isabel Aguayo, Councilmember
Annette C. Delgadillo, Councilmember
Vilma Cuellar Stallings, Councilmember
Planning Commission
Linda Timmons, Chair
Gorden Weisenburger, Vice Chair
Javier Gonzalez, Commissioner
David Moody, Commissioner
Ernie Esparza, Commissioner
City Officials
John Moreno, City Manager
Nicholas Ghirelli, City Attorney
Grissel Chavez, Assistant City Manager
John King, Planning & Building Director
Adriana Figueroa, Public Works Director
Yecenia Guillen, Community Services Director
Margarita Matson, Public Safety Director
Lana Dich, Finance Director
Parks & Recreation Commission
Charlene Landry, Chair
Austin Moreno, Vice Chair
Jennifer Alcaraz, Commissioner
Shirley Grayson, Commissioner
Alejandro Maldonado, Commissioner
Public Safety Commission
Marcelina Bridges, Chair
Dora Sanchez, Vice Chair
Robert Cruz, Commissioner
Gerardo Ruiz, , Commissioner
Steve Yanez, Commissioner
Public Works Commission
Georgina Arceo, Chair
Rita Aguilar, Vice Chair
Jaime Abrego, Commissioner
Alvin Parks, Commissioner
Rosemary Vasquez, Commissioner
Senior Services Commission
Claudia Quinones, Chair
Elsa Padilla, Vice Chair
Martha Garcia, Commissioner
Anna Mageno, Commissioner
Patricia Winiecki, Commissioner
viii
Assistant City
Manager
Organizational Chart
City of Paramount, CA
on June 30, 2025
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 &
Building
Planning /zoning
Building/Safety
Development
Housing
Property
improvement
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 &
Building
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, 2024.
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, 2025 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.
This page intentionally left blank.
6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT AUDITOR’S 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, 2025, 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, 2025, 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 Auditor’s 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 auditor’s 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 auditor’s 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 30, 2025, 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 30, 2025
4 This page intentionally left blank.
City of Paramount
Management’s Discussion and Analysis (Unaudited)
June 30, 2025
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, 2025. 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 2024-25 by $143.8 million (net position). This amount increased by approximately $10.8 million from last year.
As of June 30, 2025, the City’s governmental funds reported combined fund balances of $71.2 million. Of this amount, approximately $1.4 million (2.0%) is nonspendable, $16.1 million (22.7%) is restricted, $31.6 million (44.4%) is committed, $20.0 million (28.0%) is assigned, and $2.1 million (2.9%) is unassigned and available for spending at the City’s discretion. As of June 30, 2025, the Water Enterprise Fund reported an unrestricted net position of negative $1.1 million.
Although the unrestricted net position remains negative, the deficit reflects a significant improvement compared to the prior year deficit of $4.2 million. The negative unrestricted net position is primarily attributable to delays in bringing Well 16 into operation. Management has developed financial strategies intended to improve the Water Enterprise Fund’s financial position over time.
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, 2025
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 position 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, 2025
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 45-83 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 87-97.
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 104-139 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
2025 2024 2025 2024 2025 2024
Current and other assets $ 84,752,491 $ 80,686,020 $ 4,874,797 $ 15,424,553 $ 89,627,288 $ 96,110,573 Capital assets, net 83,914,744 76,458,433 37,299,654 33,362,750 121,214,398 109,821,183 Total assets 168,667,235 157,144,453 42,174,451 48,787,303 210,841,686 205,931,756 Deferred outflows of resources 9,337,139 12,062,890 659,023 1,750,321 9,996,162 13,813,211 Current liabilities 11, 8,726,850 101,192 2,095,459 6,489,858 13,196,651 15,216,708 Long-term liabilities 30, 31,287,594 094,877 24,292,946 25,342,331 54,387,823 56,629,925 Total liabilities 41, 40,014,444 196,069 26,388,405 31,832,189 67,584,474 71,846,633 Deferred inflows of resources 8,795,328 12,968,206 707,298 1,887,338 9,502,626 14,855,544 Net position
Net investment in capital assets 82,536,876 76,132,951 16,838,647 21,013,078 99,375,523 97,146,029 Restricted 16,303,894 16,004,360 - - 16,303,894 16,004,360 Unrestricted 29,172,207 24,087,382 (1,100,876) (4,194,981) 28,071,331 19,892,401 Total net position $ 128,012,977 $ 116,224,693 $ 15,737,771 $ 16,818,097 $ 143,750,748 $ 133,042,790 City of Paramount - Summary of Net Position
June 30, 2025 and 2024
City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2025
8 The City’s total assets increased from $205.9 million to $210.8 million during the fiscal year, while total liabilities decreased from $71.8 million to $67.6 million. Pension and Other Post-Employment Benefits (OPEB) related deferred outflows of resources decreased from $13.8 million to $10.0 million, and deferred inflows of resources decreased from $14.9 million to $9.5 million (see Notes 7 and 8 on pages 69–78). As of June 30, 2025, the City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $143.8 million, representing an increase of $10.8 million from the prior year. The increase was primarily attributable to capital projects capitalized as assets, and a year-end operating surplus from one-time revenue sources.
Governmental activities. For the year ended June 30, 2025, the City’s governmental activities reported a total net position of $128.0 million, representing an increase of $11.8 million from the prior year. Operating contributions and grants increased by approximately $0.3 million compared to the prior year. Total program expenses increased to $57.5 million, up from $55.1 million in the prior year, driven primarily by higher public works and public safety expenditures.
General revenues decreased from the prior year; however, strong market performance resulted in an increase of approximately $0.5 million in investment earnings. Overall tax revenues declined by approximately $2.2 million, primarily due to lower sales tax and transactions and use tax revenues.
Business-type activities. Business-type activities, consisting of the Water Enterprise Fund, reported a decrease in net position of $1.1 million, from $16.8 million to $15.7 million. Total revenues increased to approximately $10.4 million, reflecting an increase of $0.9 million in program revenues. Total expenses increased to $11.5 million. While total revenues increased compared to the prior year, they were not sufficient to offset overall operating costs, resulting in a decrease in net position for the fiscal year.
City of Paramount - Summary of Changes in Net Position
Year Ended June 30, 2025 and 2024
Governmental Business-Type
Activities Activities Total
2025 2024 2025 2024 2025 2024
Program revenues
Charges for services 3,896,318 $ 3,448,887 $ 10,032,497 $ 9,280,735 $ 13,928,815 $ 12,729,622 $ Operating contributions and grants 10,512,887 10,202,595 - - 10,512,887 10,202,595 Capital contributions and grants 10,126,880 5,835,628 - - 10,126,880 5,835,628 General revenues
Sales tax 10,699,660 12,187,616 - - 10,699,660 12,187,616 Transaction & use tax 7,509,858 8,551,198 - - 7,509,858 8,551,198 Utility user's tax 4, 4,652,691 981,902 - - 4,981,902 4,652,691 Franchise tax 2,616,822 2,471,532 2,616,822 2,471,532
Property tax 3,255,950 3,095,924 - - 3,255,950 3,095,924 Business license tax 1,409,135 1,046,281 - - 1,409,135 1,046,281 Investment earnings 2,754,193 2,239,275 368,484 251,897 3,122,677 2,491,172 Unrestricted motor vehicle license fee 8,968,371 8,406,004 - - 8,968,371 8,406,004 Other revenue 2,576,105 1,583,242 - - 2,576,105 1,583,242 Total revenues 69,308,081 63,720,873 10,400,981 9,532,632 79,709,062 73,253,505 Program expenses
General government 8,939,850 8,911,185 - - 8,939,850 8,911,185 Community development 3,866,190 3,509,880 - - 3,866,190 3,509,880 Public safety 16,065,985 15,675,326 - - 16,065,985 15,675,326 Community services &recreation 10,509,716 11,440,951 - - 10,509,716 11,440,951 Public works 17,744,565 15,169,110 - - 17,744,565 15,169,110 Interest and fiscal charges 393,491 368,796 - - 393,491 368,796 Water - - 11,481,307 11,240,964 11,481,307 11,240,964
Total expenses 57,519,797 55,075,248 11,481,307 11,240,964 69,001,104 66,316,212 Excess (deficiency) before contributions, 11,788,284 8,645,625 (1,080,326) (1,708,332) 10,707,958 6,937,293 special and extraordinary items & transfers
Transfers in / (out) - - - - - -
Special item-housing assets - - - - - -
Special item-Redevelopment Agency - - - - - -
Change in net position 11,788,284 8,645,625 (1,080,326) (1,708,332) 10,707,958 6,937,293 Net position, beginning of year 116,224,693 107,579,068 16,818,097 18,526,429 133,042,790 126,105,497 Net position, end of year 128,012,977 $ 116,224,693 $ 15,737,771 $ 16,818,097 $ 143,750,748 $ 133,042,790 $ City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2025
9 Revenues
As of June 30, 2025, total revenues were $79.7 million, an increase of $6.5 million, or 8.8%, from the prior fiscal year. This increase was primarily driven by higher capital contributions and grants, which increased by $4.3 million compared to the prior year, reflecting the timing and completion of the eligible capital improvement projects.
Sales tax revenues decreased by $1.5 million or 12.2%, while transactions and use tax revenues decreased by $1.0 million or 12.2%, resulting in a combined decline of $2.5 million or 24.4%. The decrease reflects shifting consumer behavior and lower taxable sales activity compared to the prior year. Utility user’s tax revenues increased by $0.3 million, or 7.1%, primarily due to higher utility rates and increased usage.
Franchise tax revenues increased by $0.1 million, or 5.9 %, largely attributable to higher utility franchise receipts. Property tax revenues increased by $0.2 million, or 5.2 %, due to growth in assessed property valuations. Business license tax revenues increased by $0.4 million, or 34.6%, reflecting continued economic activity and changes in the City’s business tax structure.
Investment earnings increased by $0.6 million, or 25.3%, due to higher interest rates and proactive investment of idle cash.
Motor vehicle license fee revenues increased by $0.6 million, or 6.7%, due to higher statewide allocations. Other revenues increased by approximately $1.0 million, largely attributable to the receipt of sales of the Fire House and other Settlements during the fiscal year.
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.
Sales tax 19%
Operating
contributions and
grants 16%
Transaction & use tax
13%
Motor vehicle license
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, 2025
City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2025
10 In the operating contributions and grants category, the City received some significant grant sources, including:
o $2.9 million After School Education and Safety Grant for the Success Through Academics and Recreation (S.T.A.R.) Program
o $1.5 million State Gas Tax
o $1.4 million Proposition A Transit Tax
o $1.5 million SB1 Road Maintenance & Rehabilitation Account o $1.1 million Proposition C Transit Tax
o $1.0 million Measure M Transit Tax
o $0.9 million Measure R Transit Tax
o $0.8 million Measure A Parks
o $1.0 million Community Development Block Grant
o $0.7 million Measure W Safe Clean Water
o $0.8 million Community Benefit Agreement
Expenses
Total program expenses increased from the prior year, from $55.1 million to $57.5 million, representing an increase of about $2.4 million, or 4%. The primary source of the increase was Public Works, which increased by $2.6 million, reflecting higher capital project-related consultant costs and increased maintenance-related expenses during the fiscal year. Public Safety expenses also increased by approximately $0.4 million, while Community Development expenses increased by approximately $0.4 million. General Government expenses remained relatively flat, increasing by less than $0.1 million. These increases were partially offset by a decrease of approximately $0.9 million in Community Services and Recreation, primarily due to lower program activity costs compared to the prior year.
The top three expense activities were Public Works, accounting for 31% of total expenses, Public Safety at 28%, and Community Services and Recreation at 18%.
Public Safety 28%
Public Works 31%
Community Services
18%
General Government
15%
Community
Development 7%
Interest and Fiscal
Charges 1%
EXPENSES BY FUNCTION - GOVERNMENTAL ACTIVITIES
YEAR END JUNE 30, 2025
City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2025
11 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.
As of June 30, 2025, the City’s governmental funds reported combined ending fund balances of $71.2 million, an increase of $2.7 million from the prior year balance of $68.5 million. The increase was primarily related to a surplus in the General Fund from various one-time sources and the 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:
$1.4 million, or 2%, consists of nonspendable fund balances, which include prepaid items, land held for resale, and advances from other funds;
$16.1 million, or 23%, consists of restricted fund balances related to various grants, assessments, and debt service requirements;
$31.6 million, or 44%, consists of committed fund balances for operations, economic uncertainty and infrastructure, and various development-related purposes;
$20.0 million, or 28%, consists of assigned fund balances designated for specific purposes, including compensated absences, capital projects, self-insurance, special projects, and retiree benefit obligations; and $2.1 million, or 3%, represents the unassigned fund balance, which is available for spending at the government’s discretion.
General Fund. The General Fund is the chief operating fund of the City of Paramount. As of June 30, 2025, the General Fund reported a fund balance of $52.5 million. During the fiscal year, the City continued to apply the Fund Balance Policy that was revised by the City Council in July 2024, which established reserve targets to support financial stability and risk management. In accordance with the policy, the City committed $29.2 million of its General Fund balance for operating reserves in the amount of $25.4 million, representing 50% of annual General Fund operating expenditures, and economic uncertainty and infrastructure in the amount of $3.9 million, representing 8% of General Fund operating expenditures, which is below the policy target by 2%. Despite the shortfall, these reserve levels exceed the minimum reserve ranges commonly referenced by the Government Finance Officers Association (GFOA) and provide flexibility to address economic volatility and emergency needs. Additional details regarding the City’s fund balance classifications are provided in Note 12 to the Notes to Basic Financial Statements.
Other Grants Special Revenue Fund. The City’s operating and capital contributions and grants comprise approximately 26% of total revenues and serve as one-time or ongoing revenue sources for capital projects, street maintenance, water infrastructure, and community services. For the year ended June 30, 2025, operating contributions and grants totaled $10.5 million, compared to $10.2 million in the prior year, reflecting a modest increase. In addition, capital contributions and grants increased to $10.1 million in fiscal year 2025 from $5.8 million in fiscal year 2024, primarily related to grant-funded capital and infrastructure projects.
Proprietary funds. The City’s proprietary fund provides the same type of information found in the government-wide financial statements, but in more detail.
City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2025
12 The Water Utility reported total net position of $15.7 million, of which $16.8 million represents net investment in capital assets. Unrestricted net position reflected a negative balance of $1.1 million at year-end, an improvement from the prior year, when unrestricted net position reflected a negative balance of $4.2 million. The continued negative unrestricted net position was primarily attributable to reliance on purchased imported water due to delays in the opening of Well 16, during a period of elevated water costs. In addition, the conclusion of ARPA funding, which had previously helped offset operating expenses in prior fiscal years, further contributed to the operating shortfall. To address this structural imbalance, the City is conducting a water rate study to reassess its water rate structure and support the longterm financial sustainability of the Water Utility.
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 exceeded the final budget by $0.5 million, primarily due to higher-than-anticipated intergovernmental revenues of $0.4 million. On the other hand, actual expenditures were $16.6 million lower than the final budget, largely due to delays in capital improvement projects and professional services.
City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2025
13 Capital Asset and Debt Administration
Capital assets. As of June 30, 2025, the City’s investment in capital assets for its governmental and business-type activities totaled $121.2 million, 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.
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, 2025, the City of Paramount had total outstanding liabilities of $54.4 million. Of this amount, $24.3 million 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 $210,517,618, 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.
City of Paramount
Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2025
14 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
The City’s financial outlook entering FY 2025–26 reflects ongoing inflationary pressures following recent economic volatility. Although inflation and broader economic uncertainty continue to affect municipal operations, the City’s revenue base remains relatively stable. General Fund revenues are projected to increase modestly from the prior year, driven primarily by growth in property tax, vehicle license fee (VLF), utility user’s tax, and business license tax revenues. These increases are partially offset by flat sales tax performance and projected declines in certain economically sensitive revenues.
Sales tax and transactions and use tax revenues remain the City’s largest General Fund revenue sources, together accounting for approximately 46 percent of total General Fund revenues. Sales tax revenues are projected to remain flat in FY 2025–26. Property tax revenues are projected to grow based on assessed valuation increases and reassessments, with VLF revenues increasing proportionately. Business license tax revenues are projected to increase following voterapproved changes to the tax structure, transitioning from an employee-based model to a gross-receipts-based model, with a phase-in provision applied during calendar year 2025.
General Fund expenditures for FY 2025–26 are projected to remain relatively consistent with the prior year. While total expenditures reflect a slight decrease due to the completion of certain one-time projects, ongoing cost pressures persist.
Key drivers include labor-related costs such as cost-of-living adjustments, pension contributions, health care costs, and inflationary impacts on operating and maintenance expenses. Public safety and public works continue to represent the largest portions of General Fund expenditures.
For FY 2025–26, the City adopted a balanced General Fund budget. Budgeted revenues total approximately $47.1 million, and budgeted expenditures total approximately $47.3 million. The budget includes the use of $1 million in onetime reserves to support operations and capital needs, resulting in a projected surplus of approximately $888,000.
The adopted budget also includes a cash loan from the General Fund to the Water Fund to ensure adequate working capital due to delays in the opening of Well 16. Bringing Well 16 online is expected to help reduce water costs and improve the long-term financial condition of the Water Fund.
Long-term financial projections indicate that expenditure growth may outpace revenue growth over time, creating potential structural imbalance. The City will continue to evaluate revenue strategies, expenditure controls, and longterm financial planning measures to maintain fiscal sustainability while maintaining service levels.
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 68,618,818 $ 5,041,215 $ 73,660,033 $ Cash and investments with fiscal agent 598,992 2,068 601,060 Accounts receivable 12,426,530 639,704 13,066,234
Interest receivable 436,813 29,797 466,610
Prepaid items and deposits 172,819 9,240 182,059
Inventories 255,849 - 255,849
Notes receivable, net 623,899 - 623,899
Land held for resale 771,544 - 771,544
Internal balance 1,700,000 (1,700,000) -
Capital assets
Nondepreciable assets 32,464,306 25,380,752 57,845,058
Depreciable assets, net of accumulated depreciation 50,076,224 11,897,521 61,973,745 Intangible capital assets, net of accumulated amortization 1,374,214 21,381 1,395,595 Total capital assets 37,299,654 83,914,744 121,214,398
Total assets 42,174,451 168,667,235 210,841,686
DEFERRED OUTFLOWS OF RESOURCES
Pension related 6,401,495 392,318 6,793,813
Other postemployments benefits related 266,705 2,935,644 3,202,349 Total deferred outflows of resources 659,023 9,337,139 9,996,162
LIABILITIES
Accounts payable 7,672,254 1,597,311 9,269,565
Due to other government 201,574 - 201,574
Retention payable 372,875 92,734 465,609
Unearned revenue 2,696,656 - 2,696,656
Accrued interest payable 73,466 124,101 197,567
Deposits payable 84,367 281,313 365,680
Long-term liabilities:
Due within one year 947,703 1,806,626 2,754,329
Due in more than one year 21,177,398 11,154,502 32,331,900 Net pension liabilities 9,983,398 1,329,669 11,313,067
Net other postemployment benefits liabilities 7,150,351 838,176 7,988,527 Total liabilities 26,388,405 41,196,069 67,584,474
DEFERRED INFLOWS OF RESOURCES
Pension related 7,448,378 531,752 7,980,130
Other postemployments benefits related 175,546 1,346,950 1,522,496 Total deferred inflows of resources 707,298 8,795,328 9,502,626
NET POSITION
Net investment in capital assets 82,536,876 16,838,647 99,375,523 Restricted for:
Community development - 1,254,198 1,254,198
Public safety - 490,161 490,161
Public works 14,215,349 - 14,215,349
Debt service - 13,278 13,278
Other - 330,908 330,908
Total restricted - 16,303,894 16,303,894
Unrestricted 29,172,207 (1,100,876) 28,071,331
Total net position $ 15,737,771 128,012,977 $ 143,750,748 $ City of Paramount
Statement of Net Position
June 30, 2025
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 8,939,850 $ 259,278 $ 864,094 $ - $ 1,123,372 $ Community development 3,866,190 3,022,624 1,338,145 - 4,360,769 Public safety 16,065,985 124,947 1,098,806 264,602 1,488,355 Community services 10,509,716 210,365 4,471,633 2,071,457 6,753,455 Public works 17,744,565 279,104 2,740,209 7,790,821 10,810,134 Interest 393,491 - - - -
Total governmental activities 57,519,797 3,896,318 10,512,887 10,126,880 24,536,085 Business-type Activities:
Water utility 11,481,307 10,032,497 - - 10,032,497
Total business-type activities 11,481,307 10,032,497 - - 10,032,497 Total primary government $ 13,928,815 69,001,104 $ 10,512,887 $ 10,126,880 $ 34,568,582 $ (Continued)
Program Revenues
City of Paramount
Statement of Activities
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 20 Governmental Business-type
Functions/Programs Activities Activities Total
Governmental Activities:
General government (7,816,478) $ - $ (7,816,478) $
Community development 494,579 - 494,579
Public safety (14,577,630) - (14,577,630)
Community services (3,756,261) - (3,756,261)
Public works (6,934,431) - (6,934,431)
Interest - (393,491) (393,491)
Total governmental activities (32,983,712) - (32,983,712) Business-type Activities:
Water utility (1,448,810) - (1,448,810)
Total business-type activities - (1,448,810) (1,448,810) Total primary government (1,448,810) (32,983,712) (34,432,522) General Revenues:
Sales tax - 10,699,660 10,699,660
Transaction and use tax 7,509,858 - 7,509,858
Utility users tax 4,981,902 - 4,981,902
Franchise tax 2,616,822 - 2,616,822
Property tax - 3,255,950 3,255,950
Business license tax 1,409,135 - 1,409,135
Investment earnings 2,754,193 368,484 3,122,677
Unrestricted motor vehicle license fee 8,968,371 - 8,968,371 Other revenue 2,576,105 - 2,576,105
Total general revenues 44,771,996 368,484 45,140,480
Change in Net Position 11,788,284 (1,080,326) 10,707,958 Net Position
Beginning of year 116,224,693 16,818,097 133,042,790
End of year $ 15,737,771 128,012,977 $ 143,750,748 $
(Concluded)
Net (Expense) Revenue and Changes in Net Position
City of Paramount
Statement of Activities (Continued)
For the Year Ended June 30, 2025
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 46,862,007 $ 2,627,212 $ 16,744,762 $ 66,233,981 $ Cash and investments with fiscal agent 2,068 - - 2,068
Accounts receivable 3,797,758 4,659,351 3,969,421 12,426,530 Interest receivable 307,873 20,188 95,020 423,081
Due from other funds 4,187,211 - - 4,187,211
Prepaid items 171,149 - 1,670 172,819
Notes receivable, net - - 623,899 623,899
Land held for resale 236,544 - 535,000 771,544
Advance to other funds 1,700,000 - - 1,700,000
Total assets $ 7,306,751 57,264,610 $ 21,969,772 $ 86,541,133 $
LIABILITIES, DEFERRED INFLOW OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 4,440,240 $ 1,563,843 $ 1,631,109 $ 7,635,192 $ Deposits payable 84,367 - - 84,367
Retentions payable 72,363 153,351 147,161 372,875
Unearned revenues - 2,696,656 - 2,696,656
Due to other governmental agencies 201,574 - - 201,574
Due to other funds - 2,266,092 1,921,119 4,187,211
Total liabilities 6,679,942 4,798,544 3,699,389 15,177,875 Deferred Inflows of Resources:
Unavailable revenue - 138,730 - 138,730
Total deferred inflows of resources: 138,730 - - 138,730 Fund Balances:
Nonspendable 1,407,693 - 1,670 1,409,363
Restricted 13,278 488,079 15,642,790 16,144,147
Committed 29,246,300 - 2,386,251 31,632,551
Assigned 19,732,165 - 241,342 19,973,507
Unassigned 2,066,630 - (1,670) 2,064,960
Total fund balances 488,079 52,466,066 18,270,383 71,224,528 Total liabilities, deferred inflows
of resources and fund balances $ 7,306,751 57,264,610 $ 21,969,772 $ 86,541,133 $ City of Paramount
Balance Sheet
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 27 Fund Balances of Governmental Funds $ 71,224,528
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 $1,599,323 reported in Internal Service Fund. 82,315,421 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 (12,329,805)
Compensated absences (631,323)
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. (73,466)
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 6,401,495
Net pension liability (9,983,398)
Deferred inflows related to pensions (7,448,378)
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 2,935,644
Net OPEB liability (7,150,351)
Deferred inflows related to OPEB (1,346,950)
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. 138,730 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. 3,960,830 Net Position of Governmental Activities $ 128,012,977
City of Paramount
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
See accompanying Notes to the Financial Statements.
28 Other Grants
Special Nonmajor Total
General Revenue Governmental Governmental
Fund Fund Funds Funds
REVENUES:
Taxes 30,473,327 $ - $ - $ 30,473,327 $
Licenses and permits 1,701,436 - - 1,701,436
Fines and penalties 1,172,385 - - 1,172,385
Interest and use of property 2,629,255 35,520 848,132 3,512,907 Intergovernmental revenues 8,968,371 6,190,355 13,891,478 29,050,204 Charges for services 756,338 - 252,064 1,008,402
Other revenues 2,546,670 - 270,455 2,817,125
Total revenues 6,225,875 48,247,782 15,262,129 69,735,786 EXPENDITURES:
Current:
General government 8,950,140 - 548,383 9,498,523
Community development 2,857,217 153,957 1,166,050 4,177,224 Public safety 15,238,441 643,730 365,577 16,247,748
Community services 3,856,460 - 3,796,046 7,652,506
Public works 10,248,423 440,814 2,271,887 12,961,124
Capital outlay:
Streets, sidewalks and signals - 2,222,527 5,071,200 7,293,727 Parks 2,450,631 - 261,837 2,712,468
Other 4,284,048 106,240 1,211,172 5,601,460
Debt service:
Principal 1,722,229 - 76,650 1,798,879
Interest 347,287 - 9,459 356,746
Total expenditures 6,017,899 47,504,245 14,778,261 68,300,405 Excess (deficiency) of revenues over
(under) expenditures 207,976 743,537 483,868 1,435,381
OTHER FINANCING SOURCES:
Issuance of debt 1,217,996 - 87,877 1,305,873
Total other financing sources - 1,217,996 87,877 1,305,873 Net change in fund balances 207,976 1,961,533 571,745 2,741,254 FUND BALANCES:
Beginning of year 50,504,533 280,103 17,698,638 68,483,274 End of year $ 488,079 52,466,066 $ 18,270,383 $ 71,224,528 $ City of Paramount
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 29 Net Change in Fund Balances - Governmental Funds $ 2,741,254 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 $220,893 reported in Internal Service Fund 13,755,479 Depreciation expense, net of $106,619 reported in Internal Service Fund (6,413,442) 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 1,798,879
Issuance of lease liability (1,305,873)
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. 60,756 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. 1,430,758 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. 666,208
Revenues reported as unavailable revenue in the governmental funds and recognized in the Statement of Activities. (552,643) 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. (356,347) Change in Net Position of Governmental Activities $ 11,788,284 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, 2025
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 investment $ 2,384,837 5,041,215 $
Cash and investment with fiscal agent 598,992 -
Accounts receivable - 639,704
Interest receivable 13,732 29,797
Prepaid items - 9,240
Inventories - 255,849
Total current assets 2,398,569 6,574,797
Noncurrent Assets:
Capital assets:
Nondepreciable asset - 25,380,752
Depreciable assets, net of accumulated depreciation 11,897,521 1,599,323 Intangible capital assets, net of accumulated amortization 21,381 - Total capital assets 1,599,323 37,299,654
Total noncurrent assets 1,599,323 37,299,654
Total assets 3,997,892 43,874,451
DEFERRED OUTFLOWS OF RESOURCES
Pension related - 392,318
Other postemployment benefits related 266,705 -
Total deferred outflows of resources - 659,023
LIABILITIES
Current Liabilities:
Accounts payable 37,062 1,597,311
Retentions payable - 92,734
Interest payable - 124,101
Deposits payable - 281,313
Compensated absences, due within one year 29,412 -
Bonds and notes payable, due within one year 910,296 -
Lease payable, due within one year - 7,995
Total current liabilities 37,062 3,043,162
Noncurrent Liabilities:
Advance from other funds - 1,700,000
Compensated absences, due in more than one year 54,623 - Bonds and notes payable, due in more than one year 21,114,343 - Lease payable, due in more than one year 8,432 -
Net pension liability - 1,329,669
Net other postemployment benefits liability 838,176 -
Total noncurrent liabilities - 25,045,243
Total liabilities 37,062 28,088,405
DEFERRED INFLOWS OF RESOURCES
Pension related - 531,752
Other postemployment benefits related 175,546 -
Total deferred inflows of resources - 707,298
NET POSITION
Net investment in capital assets 1,599,323 16,838,647
Unrestricted 2,361,507 (1,100,876)
Total Net Position $ 3,960,830 15,737,771 $
City of Paramount
Statement of Net Position
Proprietary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 33 Business-type Governmental
Activities ActivitiesWater Internal Service
Enterprise Fund Fund
OPERATING REVENUES
Charges for services $ - 9,901,723 $
Other revenue - 130,774
Total operating revenue - 10,032,497
OPERATING EXPENSES
Water commission - 764
Water system administration - 1,178,304
Water production - 6,293,438
Water distribution - 1,589,370
Water customer service - 215,358
Water billing - 346,629
Other operating expenses 374,666 256,894
Depreciation 106,619 765,781
Total operating expenses 481,285 10,646,538
Operating (loss) (481,285) (614,041)
NONOPERATING REVENUES (EXPENSES)
Interest revenue 124,938 368,484
Interest expense - (834,769)
Total nonoperating revenues (expenses) (466,285) 124,938 Change in net position (356,347) (1,080,326)
NET POSITION
Beginning of year 4,317,177 16,818,097
End of year $ 3,960,830 15,737,771 $
City of Paramount
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
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 10,145,326 $ - $
Payments to suppliers (386,637) (11,493,712)
Payments to employees - (1,896,956)
Net cash (used in) operating activities (386,637) (3,245,342) Cash Flows From Noncapital Financing Activities:
Principal paid on pension obligation bonds (183,397) -
Interest paid on pension obligation bonds (44,653) -
Net cash (used in) noncapital financing activities - (228,050) Cash Flows From Capital and Related Financing Activities:
Acquisition of capital assets (220,893) (4,958,270)
Principal paid on capital debt - (463,680)
Interest paid on capital debt - (1,083,772)
Net cash (used in) capital and related financing activities (220,893) (6,505,722) Cash Flows From Investing Activities
Interest received 129,397 399,941
Net cash provided by investing activities 129,397 399,941 Net change in cash and cash equivalents (9,579,173) (478,133) Cash and Cash Equivalents:
Beginning of year 2,862,970 15,219,380
End of year $ 2,384,837 5,640,207 $
Noncash Item:
Amortization of bond discount $ - 1,608 $
Reconciliation of Operating Loss to Net Cash Used in
Operating Activities:
Operating (loss) $ (481,285) (614,041) $
Adjustments to reconcile operating (loss) to
net cash (used in) operating activities:
Depreciation expense 106,619 765,781
Changes in assets and liabilities:
(Increase)/decrease in accounts receivable 110,904 -
(Increase)/decrease in prepaid items (440) -
(Increase)/decrease in inventory (21,338) -
(Increase)/decrease in deferred inflows of resources - pensions 896,278 - (Increase)/decrease in deferred inflows of resources - OPEB 195,019 - Increase/(decrease) in accounts payable (3,845,474) (11,971) Increase/(decrease) in advance to other funds 850,000 - Increase/(decrease) in deposits payable 1,925 -
Increase (decrease) in compensated absences (1,437) -
Increase (decrease) in net pension liability 257,272 -
Increase (decrease) in net OPEB liability (659,751) -
Increase (decrease) in deferred inflows of resources - pensions (1,079,269) - Increase (decrease) in deferred inflows of resources - OPEB (100,771) - Total adjustments 94,648 (2,631,301)
Net cash used in operating activities $ (386,637) (3,245,342) $ City of Paramount
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
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 $ 79,250 2,921,998 $
Restricted cash and investments 4,439,298 -
Interest receivable - 3,558
Notes receivable - 75
Total current assets 79,250 7,364,929
Noncurrent assets
Building and building improvement 358,066 -
Infrastructure - 4,277,466
Less: accumulated depreciation (3,967,947) -
Total noncurrent assets - 667,585
Total assets 79,250 8,032,514
LIABILITIES
Current liabilities
Accounts payable 79,250 -
Interest payable - 32,046
Bonds payable, due within one year 5,583,298 -
Total current liabilities 79,250 5,615,344
Noncurrent liabilities:
Bonds payable, due in more than one year 5,578,510 -
Deferred pass through payments - 930,740
Total noncurrent liabilities - 6,509,250
Total liabilities 79,250 12,124,594
NET POSITION (DEFICIT)
Restricted for:
Successor Agency for the Paramount Redevelopment Agency (4,092,080) - Total fiduciary net position $ - (4,092,080) $
City of Paramount
Statement of Fiduciary Net Position
June 30, 2025
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 5,973,736 $ - $ Interest and use of property - 90,230
Total additions - 6,063,966
DEDUCTIONS:
Administrative expenses - 250,000
Depreciation - 180,171
Interest and fiscal agent expenses 897,986 -
Total deductions - 1,328,157
Change in net position - 4,735,809
NET POSITION:
Beginning of year - (8,827,889)
End of year $ - (4,092,080) $
City of Paramount
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
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, 2025
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 ................................................................................................................. 49 F. Prepaid Items and Deposits ............................................................................................................. 50 G. Inventories ...................................................................................................................................... 50 H. Land Held for Resale ...................................................................................................................... 50 I. Interfund Transactions .................................................................................................................... 50 J. Capital Assets ................................................................................................................................. 50 K. Deferred Outflows and Inflows of Resources ................................................................................. 51 L. Compensated Absences .................................................................................................................. 51 M. Long-Term Liabilities ..................................................................................................................... 51 N. Arbitrage ......................................................................................................................................... 51 O. Lease Liabilities .............................................................................................................................. 51 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 .......................................................................................................................... 56 A. Demand Deposits ............................................................................................................................ 56 B. Investments Authorized by the California Government Code and the City’s Investment .............. 56 C. Investments Authorized by Debt Agreements ................................................................................ 56 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 ...................................................................................................................... 58 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 ...................................................................................................... 59 Note 4 – Notes Receivable ................................................................................................................................... 60 A. HOME Improvement Loan Program .............................................................................................. 60 B. HOME Senior Housing Loan ......................................................................................................... 60 C. Affordable Home Ownership Program – Clearwater Court ........................................................... 60 D. Home Improvement Loan Program ................................................................................................ 60 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, 2025
44 Page
Note 5 – Capital Assets ......................................................................................................................................... 61 A. Governmental Activities .................................................................................................................. 61 B. Business-Type Activities ................................................................................................................. 62 C. Fiduciary Activities ......................................................................................................................... 63 Note 6 – Long-Term Liabilities ........................................................................................................................... 63 A. Governmental Activities .................................................................................................................. 63 B. Business-Type Activities ................................................................................................................. 65 C. Fiduciary Activities ......................................................................................................................... 68 Note 7 – Pension .................................................................................................................................................... 69 A. General Information about the Pension Plan ................................................................................... 69 B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions ........................................................................ 71 Note 8 – Other Postemployment Benefits (“OPEB”) ........................................................................................ 75 A. Information About the OPEB Plan .................................................................................................. 75 B. Net OPEB Liability .......................................................................................................................... 76 C. Changes in Net OPEB Liability ....................................................................................................... 77 D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB ............................................................................................................ 78 Note 9 – Deferred Compensation Plan ................................................................................................................ 79 Note 10 – Liability, Workers’ Compensation, and Purchased Insurance ....................................................... 79 A. Description of Self-Insurance Pool Pursuant to Joint Agreement ................................................... 79 B. Primary Self-Insurance Programs of the CJPIA .............................................................................. 79 C. Purchased Insurance ........................................................................................................................ 80 D. Adequacy of Protection ................................................................................................................... 81 Note 11 – Net Investment in Capital Assets ........................................................................................................ 81 Note 12 – Fund Balance ........................................................................................................................................ 82 Note 13 – Individual Fund Disclosure ................................................................................................................. 83 Note 14 – Subsequent Events ............................................................................................................................... 83 City of Paramount
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
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, 2025
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, 2025
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, 2025
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 funds follow the economic resources measurement focus and the accrual basis of accounting. 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, 2025
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.
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.
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
50 Note 1 – Summary of Significant Accounting Policies (Continued) 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.
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
Infrastructure 15 - 100 years
Right-to-use lease assets lesser of lease term or useful life City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
51 Note 1 – Summary of Significant Accounting Policies (Continued) 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. Compensated Absences
The City maintains a paid time off (PTO) policy as part of its employee compensation and benefits program.
Under the City’s established policy, full-time employees accrue PTO, which encompasses both vacation and sick leave. PTO accrual rates vary based on years of service and employment classification. Part-time employees do not accrue PTO but are eligible to earn sick leave in accordance with policy. Accrued PTO is subject to carryover limits and may be paid out upon separation from service, depending on eligibility and policy provisions.
The liability for compensated absences is recognized as leave is earned, based on the employee’s pay rate in effect at the financial statement date, including any applicable salary-related costs. The liability includes only leave attributable to services already rendered and that is more likely than not to be paid.
M. 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.
N. 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, 2025.
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.
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
52 Note 1 – Summary of Significant Accounting Policies (Continued) O. Lease Liabilities (Continued)
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, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
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.
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
53 Note 1 – Summary of Significant Accounting Policies (Continued) 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. Investments are reported at fair value.
The following timeframes are used for OPEB reporting:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
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, 2025, property tax revenue to the City totaled $3,255,950.
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.
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.
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
54 Note 1 – Summary of Significant Accounting Policies (Continued) 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, inventory, or advance from other fund) 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.
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.
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
55 Note 1 – Summary of Significant Accounting Policies (Continued) 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, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. There is no significant impact to the financial statements as a result of the implementation.
Note 2 – Cash and Investments
Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:
Statement of
Governmental
Activities
Business-type
Activities
Fiduciary Net
Position Total
Cash and investments 68,618,818 $ 5,041,215 $ 3,001,248 $ 76,661,281 $ Cash and investment with fiscal agent 2,068 598,992 4,439,298 5,040,358 Total cash and investments 68,620,886 $ 5,640,207 $ 7,440,546 $ 81,701,639 $ Government-Wide
Statement of Net Position
Cash and investments as of June 30, 2025 consisted of the following:
Petty cash 8,869 $
Deposits with financial institutions 4,703,558
Investments 76,989,212
Total cash and investments 81,701,639 $
A. Demand Deposits
The carrying amounts of the City’s demand deposits were $4,703,558 at June 30, 2025. Bank balances at that date were $5,422,502, 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.
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
56 Note 2 – Cash and Investments (Continued)
A. Demand Deposits (Continued)
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 11, 2024. 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 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
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
57 Note 2 – Cash and Investments (Continued)
D. Fair Value Measurement
At June 30, 2025, 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, 2025.
Quoted Prices in
Active Markets for Significant Other
Identical Assets Observable Inputs
Investment Type Value (Level 1) (Level 2) Uncategorized Investments:
US Treasury notes 20,397,725 $ 20,397,725 $ - $ - $
Money market funds 66,937 - - 66,937
US government sponsored enterprise securities 20,051,703 - 20,051,703 - Negotiable certificates of deposit 23,730,149 - 23,730,149 - LAIF - 306,354 - 306,354
CAMP - 7,395,987 - 7,395,987
Investments with fiscal agent:
Money market funds 5,040,357 - - 5,040,357
Total investments 76,989,212 $ 20,397,725 $ 43,781,852 $ 12,809,635 $ 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:
Investment Type Amount Less than 1 1 to 2 2 to 3 3 to 4 4 to 5 Investments:
US Treasury notes 20,397,725 $ $ 5,475,696 $ 4,511,970 6,467,328 $ 505,385 $ 3,437,346 $ Money market funds 66,937 66,937 - - - -
US government sponsored
enterprise securities 20,051,703 738,264 6,373,861 1,513,737 6,861,012 4,564,829 Negotiable certificates of deposit 23,730,149 2,468,637 4,744,904 7,964,947 6,829,739 1,721,922 LAIF 306,354 306,354 - - - -
CAMP 7,395,987 7,395,987 - - - -
Investments with Fiscal Agent:
Money market funds 5,040,357 - 5,040,357 - - -
Total investments 76,989,212 $ 21,492,232 $ 17,586,093 $ 13,990,654 $ 14,196,136 $ 9,724,097 $ Investment Maturities (in Years)
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
58 Note 2 – Cash and Investments (Continued)
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 20,397,725 $ $ - 20,397,725 $
Money market funds None 66,937 - 66,937
US government sponsored enterprise securities None 20,051,703 - 20,051,703 Negotiable certificates of deposit None 23,730,149 23,730,149 - LAIF None 306,354 - 306,354
CAMP None 7,395,987 7,395,987 -
Investments with Fiscal Agent:
Money market funds None 5,040,357 - 5,040,357
Total investments 76,989,212 $ 52,952,709 $ 24,036,503 $ 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, 2025 are as follows:
Issuer Reported Amount
Federal National Mortgage Association US government sponsored enterprise securities 3,662,033 $ Federal Home Loan Mortgage Corp US government sponsored enterprise securities 5,600,335 Federal Farm Credit Bank US government sponsored enterprise securities 8,272,185 Investment Type
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).
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
59 Note 2 – Cash and Investments (Continued)
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, 2025, the City had $306,354 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, 2025, the City had the following due from/to other funds:
Due To Other Funds
Other Grants Special Revenue Fund
Nonmajor Governmental Funds
Total
Due From Other Funds
General Fund
1,921,119
$ 2,266,092
$ 4,187,211
The amounts due to the General Fund from nonmajor governmental funds are short- term loans to provide cash flows.
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 net position is reduced to an unacceptable level. The City General Fund; therefore, lent the Water Fund $850,000 in year ended June 30, 2024, and an additional of $850,000 in the year ended June 30, 2025. The first repayment of interfund loan with $700,000 will occur during the year ended June 30, 2026 and the remaining of the repayment with 4% simple interest will occur after June 30, 2026.
At June 30, 2025, the City had the following advance to/from other funds:
Advance to
General Fund
Water Enterprise Fund
$ 1,700,000
Advance from
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
60 Note 4 – Notes Receivable
The following is a summary of notes receivable by fund at June 30, 2025.
Home Partnership Act Special Revenue Fund:
Home Improvement Loan Program 154,235 $
Senior Housing Note 948,500
Allowance for notes receivable (948,500)
Total Home Partnership Act Special Revenue Fund 154,235 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 623,899 $
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 $154,235 at June 30, 2025.
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, 2025.
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, 2025.
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, 2025. The former Redevelopment Agency transferred the Affordable Home Ownership Loans to the Paramount Housing Authority.
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
61 Note 4 – Notes Receivable (Continued)
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, 2025.
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, 2025 is as follows:
Balance Balance
July 1, 2024 Additions Deletions Reclassification June 30, 2025 Capital assets not being depreciated:
Land 14,849,080 $ - $ (11,520) $ - $ 14,837,560 $
Construction in progress 10,284,238 11,499,478 - (4,156,970) 17,626,746 Total capital assets not being depreciated 25,133,318 11,499,478 (11,520) (4,156,970) 32,464,306 Capital assets being depreciated:
Land improvements 24,895,967 70,015 - 1,094,115 26,060,097 Buildings and improvements 21,007,639 529,872 - 980,486 22,517,997 Other equipment 4,314,280 136,824 (30,577) 61,248 4,481,775 Vehicles 2,517,604 13,888 (118,300) - 2,413,192
Computer equipment 288,528 - - - 288,528
Fine arts 1,174,521 63,875 - - 1,238,396
Infrastructure 130,731,187 356,548 - 2,021,121 133,108,856 Total capital assets being depreciated 184,929,726 1,171,022 (148,877) 4,156,970 190,108,841 Less accumulated depreciation for:
Land improvements (20,202,922) (541,019) - - (20,743,941) Buildings and improvements (13,485,024) (652,696) - (14,137,720) Other equipment (2,361,461) (372,222) 30,577 - (2,703,106) Vehicles (1,926,101) (168,697) 129,820 - (1,964,978)
Computer equipment (253,345) (15,520) - - (268,865)
Fine arts (1,006,295) (26,077) - - (1,032,372)
Infrastructure (94,669,648) (4,511,987) - - (99,181,635) Total accumulated depreciation (133,904,796) (6,288,218) 160,397 - (140,032,617) Total capital assets being depreciated, net 51,024,930 (5,117,196) 11,520 4,156,970 50,076,224 Intangible assets, being amortized
Right-of-use leased vehicles 445,178 1,305,872 - - 1,751,050 Accumulated amortization (144,993) (231,843) - - (376,836) Total intangible assets, being amortized, net 300,185 1,074,029 - - 1,374,214 Total governmental activities $ 7,456,311 76,458,433 $ - $ - $ 83,914,744 $ City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
62 Note 5 – Capital Assets
A. Governmental Activities (Continued)
Depreciation and amortization expense was charged to the governmental activities as follows:
General government 70,840 $
Community development 21,358
Public safety 30,914
Community services and recreation 1,211,136
Public works 5,079,194
Internal service fund 106,619
Total depreciation and amortization expense 6,520,061 $ B. Business-Type Activities
The summary of changes in the capital assets for the business-type activities for the year ended June 30, 2025 is as follows:
Balance Balance
July 1, 2024 Additions Deletions June 30, 2025
Capital assets not being depreciated:
Land 2,894,476 $ - $ - $ 2,894,476 $
Construction in progress 17,783,591 4,702,685 - 22,486,276 Total capital assets not being depreciated 20,678,067 4,702,685 - 25,380,752 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 278,265 - - 278,265
Total capital assets being depreciated 41,628,479 - - 41,628,479 Less accumulated depreciation for:
Buildings and wells (5,876,180) (304,089) - (6,180,269) Mains (15,077,849) (354,672) - (15,432,521)
Distribution equipment (6,018,833) (53,535) - (6,072,368) Other equipment (1,134,975) (25,900) - (1,160,875)
Tools (23,089) - - (23,089)
Vehicles (577,551) (18,392) - (595,943)
Computer equipment (264,718) (1,175) - (265,893)
Total accumulated depreciation (28,973,195) (757,763) - (29,730,958) Total capital assets being depreciated, net 12,655,284 (757,763) - 11,897,521 Intangible assets, being amortized
Right-of-use leased vehicles 40,090 - - 40,090
Accumulated amortization (10,691) (8,018) - (18,709)
Total intangible assets, being amortized, net 29,399 (8,018) - 21,381 Total business-type activities $ 3,936,904 33,362,750 $ - $ 37,299,654 $ Depreciation and amortization expense was charged to business-type activities as follows:
Water 765,781 $
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
63 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, 2025 is as follows:
Balance Balance Due within Due in more
July 1, 2024 Additions Deletions June 30, 2025 One Year than One Year Compensated absences* 692,079 $ - $ (60,756) $ 631,323 $ 224,955 $ 406,368 $ Direct Borrowing:
Financed purchases 12,164 - (12,164) - - -
Public Offering:
Pension Obligation Bonds 12,707,911 - (1,241,603) 11,466,308 1,259,029 10,207,279 Bond discount (152,380) - 10,884 (141,496) (10,884) (130,612) Lease payable 244,232 1,305,873 (545,112) 1,004,993 333,526 671,467 Total $ 1,305,873 13,504,006 $ (1,848,751) $ 12,961,128 $ 1,806,626 $ 11,154,502 $ * Presented as net change during the year ended June 30,2025.
Classification
Depreciation expense in the amount of $180,171 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, 2025 is as follows:
Balance Balance Due within Due in more
July 1, 2024 Additions Deletions June 30, 2025 One Year than One Year Compensated absences* 692,079 $ - $ (60,756) $ 631,323 $ 224,955 $ 406,368 $ Direct Borrowing:
Financed purchases 12,164 - (12,164) - - -
Public Offering:
Pension Obligation Bonds 12,707,911 - (1,241,603) 11,466,308 1,259,029 10,207,279 Bond discount (152,380) - 10,884 (141,496) (10,884) (130,612) Lease payable 244,232 1,305,873 (545,112) 1,004,993 333,526 671,467 Total $ 1,305,873 13,504,006 $ (1,848,751) $ 12,961,128 $ 1,806,626 $ 11,154,502 $ Classification
Compensated Absences
The long-term portion of compensated absences payable has been accrued for the Governmental Activities on the Government-Wide Financial Statements.
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
64 Note 6 – Long-Term Liabilities (Continued)
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 were fully paid off during the year June 30, 2025.
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, 2025, are as follows:
Year ending
June 30, Principal Interest Total Principal Interest Total 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 1,541,200 196,267 31,384 227,651 2030 1,363,585 181,653 1,545,238 201,415 26,832 228,247 2031-2035 3,829,363 516,871 4,346,234 565,637 76,347 641,984 2036-2038 1,106,550 60,211 1,166,761 163,450 8,894 172,344 Total 11,466,308 $ 1,761,585 $ 13,227,893 $ 1,693,692 $ 260,205 $ 1,953,897 $ Year ending
June 30, Principal Interest Total
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 1,525,000 243,851 1,768,851
2030 1,565,000 208,485 1,773,485
2031-2035 4,395,000 593,218 4,988,218
2036-2038 1,270,000 69,105 1,339,105
Total 13,160,000 $ 2,021,790 $ 15,181,790 $
Total
Governmental Activities Business-Activities
Water Enterprise Fund
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
65 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
2026 333,526 $ 54,873 $ 388,399 $
2027 325,496 36,662 362,158
2028 270,764 18,890 289,654
2029 75,207 4,106 79,313
Total 1,004,993 $ 114,531 $ 1,119,524 $
B. Business-Type Activities
The summary of changes in the long-term liabilities for the business-type activities for the year ended June 30, 2025 is as follows:
Balance Balance Due within Due in more
July 1, 2024 Additions Deletions* June 30, 2025 One Year than One Year Compensated absences 85,473 $ - $ (1,437) $ 84,036 $ 29,412 $ 54,624 $ Direct Borrowing:
Note payable - IBank 9,571,590 - (348,154) 9,223,436 359,199 8,864,237 Note payable - AMI 11,236,354 - (107,944) 11,128,410 365,126 10,763,284 Public Offering:
Pension Obligation Bonds 1,877,089 - (183,397) 1,693,692 185,971 1,507,721 Bond discount (22,508) - 1,608 (20,900) - (20,900)
Lease payable 24,009 - (7,582) 16,427 7,995 8,432
Total $ - 22,772,007 $ (646,906) $ 22,125,101 $ 947,703 $ 21,177,398 $ 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, 2025, interest of $118,054 and principal of $176,938 were paid leaving an outstanding balance of $3,478,098.
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
66 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 make a prepayment request to IBank for 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, 2025, interest of $176,678 and principal of $171,216 were paid leaving an outstanding balance of $5,745,338.
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, 2025, are as follows:
Year ending
June 30, Principal Interest Total
2026 359,199 $ 283,511 $ 642,710 $
2027 370,593 271,934 642,527
2028 382,351 259,990 642,341
2029 394,483 247,665 642,148
2030 407,000 234,949 641,949
2031-2035 2,237,142 969,394 3,206,536
2036-2040 2,615,467 585,053 3,200,520
2041-2045 1,466,381 253,840 1,720,221
2046-2048 990,820 45,631 1,036,451
Total 9,223,436 $ 3,151,967 $ 12,375,403 $
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 outstanding balance is $11,128,410 as of June 30, 2025.
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
67 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, 2025, are as follows:
Year ending
June 30, Principal Interest Total
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 443,474 464,284 907,758
2031-2035 2,571,481 1,975,915 4,547,396
2036-2040 3,278,808 1,285,773 4,564,581
2041-2044 3,261,377 405,796 3,667,173
Total 11,128,410 $ 6,184,660 $ 17,313,070 $
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
2026 7,995 $ 897 $ 8,892 $
2027 8,432 460 8,892
Total 16,427 $ 1,357 $ 17,784 $
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
68 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, 2025 is as follows:
Balance Balance Due within Due in more
July 1, 2024 Additions Deletions June 30, 2025 One Year than One Year Public Offering:
1998 Tax Allocation Refunding Bonds 12,587,087 $ 728,166 $ (4,435,945) $ 8,879,308 $ 4,439,298 $ 4,440,010 $ 2025 Tax Allocation Refunding Bonds - 2,282,500 - 2,282,500 1,144,000 1,138,500 2010 Tax Allocation Bonds 3,885,000 (3,885,000) - - -
Unamortized discount (26,560) - 26,560 - - -
Direct Borrowing:
Deferred pass through 930,740 - - 930,740 - 930,740
Total $ 3,010,666 17,376,267 $ (8,294,385) $ 12,092,548 $ 5,583,298 $ 6,509,250 $ 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.
At maturity, the bonds will have a total value as follows:
Accreted
Principal Interest Total
$ 10,927,950 3,122,050 $ 14,050,000 $
Due Date
August 1, 2026
The bonds mature on August 1, 2026 and are compounded annually at 5.35%. Accordingly, as of June 30, 2025, interest of $728,166 was added to the outstanding debt.
The 1998 Bonds are subjected to redemption on August 1, 2024, August 1, 2025, and August 1, 2026. The City redeemed the Bonds in the amount of $4,435,945 in the year ended June 30, 2025.
Future debt service requirement at June 30, 2025, is as follows:
Year ending Accreted
June 30, Principal Interest Total
2026 4,439,298 $ 237,502 $ 4,676,800 $
2027 4,440,010 237,540 4,677,550
Total 8,879,308 $ 475,042 $ 9,354,350 $
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
69 Note 6 – Long-Term Liabilities (Continued)
C. Fiduciary Activities (Continued)
2025 Tax Allocation Refunding Bonds
In February 2025, the Agency issued $2,282,500 of Tax Allocation Refunding Bonds to refund the 2010B Tax Allocation Bonds. The bonds mature August 1, 2026 and interest is due semi-annually on February 1 and August 1 4.38% annually.
Future debt service requirement at June 30, 2025, is as follows:
Year ending
June 30, Principal Interest Total
2026 1,144,000 $ 69,644 $ 1,213,644 $
2027 1,138,500 24,933 1,163,433
Total 2,282,500 $ 94,577 $ 2,377,077 $
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. The defeased Bonds were fully redeemed during. 2010 Tax Allocation Bonds were fully paid in the year ended June 30, 2025.
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, 2025, 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, 2024. 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, 2025
70 Note 7 – Pension (Continued)
A. General Information about the Pension Plan (Continued) Employees Covered by Benefit Terms
At June 30, 2023 valuation date, the following employees were covered by the benefit terms:
Miscellaneous
Active employees 92
Transferred and terminated employees 58
Separated 34
Retired Employees and Beneficiaries 173
Total 357
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, 2025
71 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, 2024 (the measurement date), the contribution rates were as follows.
Miscellaneous Rate
Plan
PEPRA
Miscellaneous Rate
Plan
Required employee contribution rates 8.00% 8.25%
Required employer contribution rates 15.21% 8.32%
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, 2023 valuation was rolled forward to determine June 30, 2024 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 2024.
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, 2025
72 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.
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
73 Note 7 – Pension (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
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 $ 11,313,067 27,445,069 $ (1,965,946) $
Plan's Net Pension Liability/(Asset)
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, 2023). 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, 2024). 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, 2023 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2023-24). (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.
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
74 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) (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.
The City’s proportionate share of the net pension liability was as follows:
Miscellaneous
June 30, 2023 0.09420%
June 30, 2024 0.09328%
Change - Increase (Decrease) -0.00092%
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: 6/30/23 (Valuation date) 113,482,446 $ 101,730,608 $ 11,751,838 $ Balance at: 6/30/24 (Measurement date) 119,549,103 108,236,036 11,313,067 Net Changes during 2023-24 6,066,657 6,505,428 (438,771) Increase (Decrease)
For the year ended June 30, 2025, the City recognized aggregated pension (credit) in the amount of $(364,262).
At June 30, 2025, 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 1,417,746 $ - $ Change of assumptions 290,768 -
Difference between expected and actual experience 978,118 (38,166) Difference between projected and actual earning on
pension plan investments 651,280 -
Adjustment due to differences in proportions 1,039,991 (4,383,549) Difference between City contributions and
proportionate share of contributions 2,415,910 (3,558,415) Total 6,793,813 $ (7,980,130) $
Miscellaneous
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
75 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 2023-2024 measurement period is 3.8 years, which was obtained by dividing the total service years of 630,177 (the sum of remaining service lifetimes of the active employees) by 166,163 (the total number of participants: active, inactive, and retired).
The $1,417,749 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, 2026.
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 (2,344,745) $
2026 305,090
2027 (341,224)
2028 (223,184)
$ (2,604,063)
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, 2024 Active employees 92
Inactive currently receiving benefit 71
Inactive entitled to but not yet receiving benefit payments 12 Total 175
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
76 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, 2025, the City’s cash contributions to the plan including the implied subsidy were $1,511,075. 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, 2024 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
CalPERS 2000-2019 Experience Study
Mortality projected fully generational with Scale MP-2021 Phase-in of full pre-funding: full ADC in 2027/28
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, 2024
6.25% at June 30, 2023
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
Change in Assumptions and Changes in Benefit Terms
In 2024, there were no changes in assumptions or benefit terms.
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, 2025
77 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% 1.56%
TIPS 5.00% -0.08%
Commodities 3.00% 1.22%
REITs 20.00% 4.06%
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, 2023 17,818,904 $ 9,216,830 $ 8,602,074 $ Changes during the measurement period:
Service cost 494,052 - 494,052
Interest 1,118,162 - 1,118,162
Benefit changes - - -
Actual vs. expected experience - - -
Assumption changes - - -
Employer contribution - 1,216,000 (1,216,000)
Net investment income 1,012,767 (1,012,767)
Benefit payments (844,736) (844,736) -
Administrative expenses - (3,006) 3,006
Net changes during measurement period 2023-24 767,478 1,381,025 (613,547) Balances as of June 30, 2024 (Measurement Date) 18,586,382 $ 10,597,855 $ 7,988,527 $ 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%)
$ 7,988,527 5,752,534 $ 10,715,908 $
Net OPEB Liability
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
78 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:
Discount Rate Current Discount Discount Rate
- 1% (5.25%) Rate (6.25%) + 1% (7.25%)
$ 7,988,527 5,752,534 $ 10,715,908 $
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, 2024, the City recognized OPEB expense of $704,895. At June 30, 2025, 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 1,511,075 $ - $ Changes of assumptions 826,501 (345,659)
Difference between expected and actual experience 820,458 (1,176,837) Difference between projected and actual earning on
OPEB plan investments 44,315 -
Total 3,202,349 $ (1,522,496) $
The $1,511,075 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
2026 (365,350) $
2027 120,171
2028 (137,299)
2029 248,753
2030 302,503
Thereafter -
$ 168,778
City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
79 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, 2025
80 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 2024-25 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 $81,409,589. 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 $2,573,213. 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, 2025
81 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.
Cyber Liability Insurance
The City purchases cyber liability insurance coverage in the amount of $10,000,000. The premiums are paid directly 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 2024-25.
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 83,914,744 $ 37,299,654 $
Retention payable (372,875) (92,734)
Capital related debt (1,004,993) (20,368,273)
Net investment in capital assets 82,536,876 $ 16,838,647 $ City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
82 Note 12 – Fund Balance
The City’s governmental fund balances at June 30, 2025 are presented below:
Other Grant Nonmajor
General Special Revenue Governmental
Fund Fund Funds Total
Nonspendable:
Prepaid items 171,149 $ - $ 1,670 $ 172,819 $
Land held for resale 236,544 - - 236,544
Advance from other fund 1,000,000 - - 1,000,000
Total nonspendable 1,407,693 - 1,670 1,409,363
Restricted:
Environmental concerns - 303,187 2,217,608 2,520,795
Public safety - 169,386 - 169,386
Housing programs - - 464,992 464,992
Housing programs - notes receivables - - 467,293 467,293 Housing programs - land held for resale - - - -
After school program - 15,506 137,720 153,226
Road maintenance - - 2,598,915 2,598,915
Waste reduction - - 463,090 463,090
Air quality management - - - -
Disability access and education - - 76,019 76,019
Public transit - - 8,660,621 8,660,621
Sewer maintenance - - 271,090 271,090
Public access - - 279,046 279,046
Parking Authority - land held for resale - - 2,371 2,371 Debt service 13,278 - - 13,278
Service Assessment - - 4,025 4,025
Total restricted 13,278 488,079 15,642,790 16,144,147
Committed:
Operating 25,372,300 - - 25,372,300
Economic uncertainty and Infrastructure 3,874,000 - 535,000 4,409,000 Community cultural services - - 691,878 691,878
Storm drains - - 694,524 694,524
General plan - - 464,849 464,849
Total committed 29,246,300 - 2,386,251 31,632,551
Assigned for:
Compensated absences 692,000 - - 692,000
Coronavirus related 4,105,969 - - 4,105,969
Equipment replacement 2,000,000 - - 2,000,000
Retiree benefit obligation 2,915,700 - - 2,915,700
Self-insurance 800,000 - 241,342 1,041,342
Special project 527,620 527,620
Capital projects fund 8,690,876 8,690,876
Special project - - - -
Total assigned 19,732,165 - 241,342 19,973,507
Unassigned - 2,066,630 (1,670) 2,064,960
Total fund balances $ 488,079 52,466,066 $ 18,270,383 $ 71,224,528 $ City of Paramount
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
83 Note 13 – Individual Fund Disclosure
The following functions report expenditures in excess of appropriations for the year ended June 30, 2025.
Expenditure
in Excess of
Appropriation Expenditure Appropriation
General Fund
Public works 9,896,000 $ 10,248,423 $ (352,423) $
Debt service:
Interest 347,287 347,000 (287)
Paramount Housing Authority Special Revenue Fund
Community development 412,498 300,000 (112,498)
AB2766 Subvention Funds Special Revenue Fund
Public works 16,000 80,636 (64,636)
Proposition A Transit Tax Special Revenue Fund
General government 75,362 68,350 (7,012)
Public works 183,500 197,277 (13,777)
Proposition C Transit Tax Special Revenue Fund
General government 84,489 75,600 (8,889)
Public works 109,300 116,930 (7,630)
Measure R Transit Tax Special Revenue Fund
Public works 12,950 27,411 (14,461)
Capital outlay:
Other 181,200 173,500 (7,700)
Public Art Fees Special Revenue Fund
General government 10,000 7,500 (2,500)
Service Assessments Special Revenue Fund
General government 4,051 3,700 (351)
Note 14 – Subsequent Events
On September 1, 2025, the Paramount Public Financing Authority issued Local Measure M Transportation Sales Tax Revenue Bonds, Series 2025 in the amount of $9,555,000. The purpose of the bonds is to finance the design, acquisition, installation, and construction of certain street and roadway improvement project located in the City and/or certain additional projects. The annual principal payments are due on May 1,with final payment on May 1, 2055.
Semi-annual interest are payable on May 1 and November 1 at annum rate of 5%. 84 This page intentionally left blank.
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
85 This page intentionally left blank.
86 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes 30,459,700 $ 30,459,700 $ 30,473,327 $ 13,627 $
Licenses and permits 2,252,150 2,252,150 1,701,436 (550,714) Fines and penalties 1,109,200 1,109,200 1,172,385 63,185 Interest and use of property 1,558,550 1,558,550 2,629,255 1,070,705 Intergovernmental revenues 8,568,250 8,568,250 8,968,371 400,121 Charges for services 2,484,000 2,484,000 756,338 (1,727,662) Other revenues 1,315,450 1,315,450 2,546,670 1,231,220
Total revenues 47,747,300 47,747,300 48,247,782 500,482 EXPENDITURES:
Current:
General government 10,432,150 10,677,710 8,950,140 1,727,570 Community development 4,738,000 4,858,770 2,857,217 2,001,553 Public safety 16,787,400 16,787,400 15,238,441 1,548,959 Community services 4,309,900 4,322,000 3,856,460 465,540 Public works 9,165,300 9,896,000 10,248,423 (352,423)
Capital outlay*
Other 4,006,800 15,817,367 4,284,048 11,533,319
Debt service:
Principal 1,425,000 1,425,000 1,722,229 (297,229)
Interest 347,000 347,000 347,287 (287)
Total expenditures 64,131,247 51,211,550 47,504,245 16,627,002 Excess (deficiency) of revenues over
(under) expenditures (16,383,947) (3,464,250) 743,537 17,127,484 OTHER FINANCING SOURCES:
Issuance of debt - - 1,217,996 1,217,996
Total financing sources - - 1,217,996 1,217,996
Net change in fund balances $ (16,383,947) (3,464,250) $ 1,961,533 18,345,480 $ FUND BALANCE:
Beginning of year 50,504,533
End of year $ 52,466,066
*There was no budget adopted for GASB 87, Leases and GASB 96, Subscription-based Information Technology Arrangements activities for 2025.
For the Year Ended June 30, 2025
Budgeted Amounts
City of Paramount
Required Supplementary Information (Unaudited)
General Funds
Budgetary Comparison Schedule
87 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 93,450 $ 93,450 $ 35,520 $ (57,930) $ Intergovernmental revenues 16,399,600 22,346,765 6,190,355 (16,156,410) Total revenues 22,440,215 16,493,050 6,225,875 (16,214,340) EXPENDITURES:
Current:
General government - 200,000 - 200,000
Community development 1,202,150 1,202,150 153,957 1,048,193 Public safety 537,900 709,750 643,730 66,020
Public works 210,900 457,980 440,814 17,166
Capital outlay:
Streets, sidewalks and signals 2,150,200 15,420,594 2,222,527 13,198,067 Parks 950,000 3,447,821 2,450,631 997,190
Other - 1,850,000 106,240 1,743,760
Total expenditures 23,288,295 5,051,150 6,017,899 17,270,396 Net change in fund balance $ (848,080) 11,441,900 $ 207,976 1,056,056 $ FUND BALANCES:
Beginning of year 280,103
End of year $ 488,079
City of Paramount
Required Supplementary Information (Unaudited)
Other Grants Special Revenue Funds
For the Year Ended June 30, 2025
Budgeted Amounts
Budgetary Comparison Schedule
88 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, 2025, appropriations subject to this limit were below the maximum allowed.
6. There was no budget adopted for GASB 87 Leases, and GASB 96 Subscription-based Information Technology Arrangements activities for the fiscal year ending June 30, 2025.
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, 2025
89 Measurement Date June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Plan's proportion of the net pension liability/(asset) 0.09328% 0.09420% 0.10024% 0.23064% 0.22039% Plan's proportionate share of the net pension 11,313,067 $ 11,751,838 $ 11,578,120 $ 12,473,659 $ 23,984,002 $ liability/(asset)
Plan's covered payroll 8,188,751 $ 7,810,475 $ 7,135,558 $ 6,860,335 $ 6,727,793 $ Plan's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll 138.15% 150.46% 162.26% 181.82% 356.49% Plan's fiduciary net position as a percentage of
the plan's total pension liability 90.54% 89.64% 89.28% 88.30% 77.71% 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, 2025
90 Measurement Date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Plan's proportion of the net pension liability/(asset) 0.23350% 0.22167% 0.23087% 0.23126% 0.23388% Plan's proportionate share of the net pension 23,926,634 $ 21,361,148 $ 22,896,454 $ 20,010,860 $ 16,053,473 $ liability/(asset)
Plan's covered payroll 6,657,324 $ 6,387,917 $ 6,190,935 $ 6,206,549 $ 6,029,967 $ Plan's proportionate share of the net pension
liability/(asset) as a percentage of its covered payroll 359.40% 334.40% 369.84% 322.42% 266.23% Plan's fiduciary net position as a percentage of
the plan's total pension liability 77.73% 75.26% 73.31% 74.06% 78.40% Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") (Continued) Required Supplementary Information (Unaudited)
City of Paramount
Schedule of Proportionate Share of the Net Pension Liability (Continued) For the Year Ended June 30, 2025
91 Fiscal year 2024-25 2023-24 2022-23 2021-22 2020-21
Actuarially Determined Contribution 1,417,746 $ 1,029,759 $ 1,541,647 $ 17,772,296 $ 2,644,674 $ Contribution in Relation to the
Actuarially Determined Contribution (1,417,746) (1,029,759) (1,541,647) (17,772,296) (3,241,174) Contribution Deficiency (Excess) - $ - $ - $ - $ (596,500) $ Covered Payroll1 $ 8,188,751 8,346,076 $ 7,810,475 $ 7,135,558 $ 6,860,335 $ Contributions as a Percentage
of Covered Payroll 16.987% 12.575% 19.738% 249.067% 47.245% 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, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Changes of Assumptions: There was no assumption change in 2024 and 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 2024 to 2025.
Notes to Schedule:
92 Fiscal year 2019-20 2018-19 2017-18 2016-17 2015-16
Actuarially Determined Contribution 2,386,867 $ 2,094,439 $ 1,764,757 $ 1,552,328 $ 1,402,641 $ Contribution in Relation to the
Actuarially Determined Contribution (2,886,867) (2,094,439) (2,644,757) (1,552,328) (1,402,641) Contribution Deficiency (Excess) (500,000) $ - $ (880,000) $ - $ - $ Covered Payroll1 $ 6,657,324 6,727,793 $ 6,387,917 $ 6,190,935 $ 6,206,549 $ Contributions as a Percentage
of Covered Payroll 42.910% 31.461% 41.402% 25.074% 22.599% City of Paramount
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") (Continued) 93 Measurement period June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Total OPEB liability
Service cost 494,052 $ 384,972 $ 374,669 $ 449,094 $ 443,371 $ Interest 1,118,162 934,803 901,174 1,099,400 1,057,467
Benefit changes - - - - -
Differences between expected and actual experience - 1,155,338 - (2,087,489) - Changes of assumption - 1,163,849 - (586,548) (287,656) Benefit payments (844,736) (783,860) (712,314) (625,003) (570,330) Net change in total OPEB liability 2,855,102 767,478 563,529 (1,750,546) 642,852 Total OPEB liability, beginning 14,963,802 17,818,904 14,400,273 16,150,819 15,507,967 Total OPEB liability, ending (a) $ 17,818,904 18,586,382 $ 14,963,802 $ 14,400,273 $ 16,150,819 $ OPEB fiduciary net position
Contributions - employer 1,216,000 $ 1,616,000 $ 1,517,000 $ 1,472,000 $ 1,219,000 $ Net investment income 1,012,767 512,350 (1,099,472) 1,579,124 178,197 Benefit payments, including refunds
of employee contributions (844,736) (783,860) (712,314) (625,003) (570,330) Administrative expenses (3,006) (2,288) (2,070) (2,177) (2,411) Net change in plan fiduciary net position 1,342,202 1,381,025 (296,856) 2,423,944 824,456 Plan fiduciary net position, beginning 7,874,628 9,216,830 8,171,484 5,747,540 4,923,084 Plan fiduciary net position, ending (b) $ 9,216,830 10,597,855 $ 7,874,628 $ 8,171,484 $ 5,747,540 $ Plan net OPEB liability - ending (a) - (b) $ 8,602,074 7,988,527 $ 7,089,174 $ 6,228,789 $ 10,403,279 $ Plan's fiduciary net position as a percentage
of the total OPEB liability 57.02% 51.73% 52.62% 56.75% 35.59% Covered-employee payroll $ 8,159,786 8,780,110 $ 7,082,429 $ 6,548,566 $ 6,727,793 $ Total OPEB liability as a percentage of coveredemployee payroll 90.98% 105.42% 100.10% 95.12% 154.63% 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, 2025
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB")
94 Measurement period June 30, 2019 June 30, 2018 June 30, 20171 Total OPEB liability
Service cost $ 450,017 463,518 $ 437,000 $
Interest 1,045,580 1,116,530 978,000
Benefit changes - - -
Differences between expected and actual experience (1,821,464) - - Changes of assumption - (97,284) -
Benefit payments (453,910) (462,020) (432,000)
Net change in total OPEB liability 1,041,687 (800,720) 983,000 Total OPEB liability, beginning 15,267,000 16,308,687 14,284,000 Total OPEB liability, ending (a) $ 16,308,687 15,507,967 $ 15,267,000 $ OPEB fiduciary net position
Contributions - employer 1,102,000 $ 1,013,000 $ 903,000 $ Net investment income 258,903 251,956 262,000
Benefit payments, including refunds
of employee contributions (462,020) (453,910) (432,000) Administrative expenses (5,979) (866) (2,000)
Net change in plan fiduciary net position 812,014 891,070 731,000 Plan fiduciary net position, beginning 3,220,000 4,032,014 2,489,000 Plan fiduciary net position, ending (b) $ 4,032,014 4,923,084 $ 3,220,000 $ Plan net OPEB liability - ending (a) - (b) $ 12,276,673 10,584,883 $ 12,047,000 $ Plan's fiduciary net position as a percentage
of the total OPEB liability 31.75% 24.72% 21.09%
Covered-employee payroll $ 6,679,479 7,069,939 $ 6,473,000 $ Total OPEB liability as a percentage of coveredemployee payroll 149.72% 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, 2025
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB") (Continued)
95 Fiscal year end 2024-25 2023-24 2022-23 2021-22 2020-21 Actuarially determined contribution2 $ 1,216,000 1,582,000 $ 1,183,000 $ 1,517,000 $ 1,472,000 $ Contribution in relation to the actuarially
determined contribution (1,511,075) (1,216,000) (1,616,000) (1,517,000) (1,472,000) Contribution deficiency/(excess) 70,925 $ - $ (433,000) $ - $ - $ Covered-employee payroll 9,150,750 $ 8,780,110 $ 7,678,609 $ 7,082,429 $ 6,548,566 $ Contributions as a percentage of
covered-employee payroll 16.51% 13.85% 21.05% 21.42% 22.48% 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 10.1-year average period for 2024/25 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 City of Paramount
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2025
Non-Medicare - 8.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Non-Kaiser) - 7.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% 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, 2023
6.25%
2.50%
96 Fiscal year end 2019-20 2018-19 2017-18 2016-171
Actuarially determined contribution2 $ 1,565,000 1,613,000 $ 1,462,000 $ 1,389,000 $ Contribution in relation to the actuarially
determined contribution (1,219,000) (1,102,000) (1,013,000) (903,000) Contribution deficiency/(excess) 394,000 $ 463,000 $ 449,000 $ 486,000 $ Covered-employee payroll 6,727,793 $ 7,069,939 $ 6,679,479 $ 6,473,000 $ Contributions as a percentage of
covered-employee payroll 18.12% 15.59% 15.17% 13.95%
City of Paramount
Other Postemployment Benefits ("OPEB") (Continued)
Last Ten Fiscal Years
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2025
97 This page intentionally left blank.
98 SUPPLEMENTARY INFORMATION
99 This page intentionally left blank.
100
NONMAJOR GOVERNMENTAL FUNDS
101
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
102
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)
103
Community HOME Paramount After School
Development HOME American Housing Education
Block Grant Partnership Act Rescue Plan Authority & Safety ASSETS
Cash and investments - $ - $ - $ 310,675 $ 260,287 $
Accounts receivable 204,138 63,045 75,599 - -
Interest receivable - - - 84 1,499
Prepaid items - - - - -
Notes receivable, net 2,371 154,235 - 467,293 -
Land held for resale - - - - -
Total assets $ 217,280 206,509 $ 75,599 $ 778,052 $ 261,786 $
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable 133,759 11,548 27,743 - 124,066
Retention payable 12,805 - - - -
Due to other funds 57,574 51,499 47,856 - -
Total liabilities 63,047 204,138 75,599 - 124,066
Fund Balances:
Nonspendable - - - - -
Restricted 2,371 154,233 - 778,052 137,720
Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total fund balances 154,233 2,371 - 778,052 137,720
Total liabilities and fund balances $ 217,280 206,509 $ 75,599 $ 778,052 $ 261,786 $ (Continued)
City of Paramount
Nonmajor Governmental Funds
Special Revenue Funds
Combining Balance Sheet
June 30, 2025
104
Disability
State Gas Traffic Waste AB2766 Access and
Tax Safety Reduction Fees Subvention Education
ASSETS
Cash and investments 950,052 $ - $ 479,889 $ 26,035 $ 74,836 $ Accounts receivable 126,361 2,237 6,523 18,153 752
Interest receivable 5,470 - 2,763 109 431
Prepaid items - - - - -
Notes receivable, net - - - - -
Land held for resale - - - - -
Total assets $ 2,237 1,081,883 $ 489,175 $ 44,297 $ 76,019 $
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable 92,762 - 26,085 44,297 -
Retention payable - - - - -
Due to other funds - 2,237 - - -
Total liabilities 2,237 92,762 26,085 44,297 -
Fund Balances:
Nonspendable - - - - -
Restricted 989,121 - 463,090 - 76,019
Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total fund balances - 989,121 463,090 - 76,019
Total liabilities and fund balances $ 2,237 1,081,883 $ 489,175 $ 44,297 $ 76,019 $ (Continued)
City of Paramount
Nonmajor Governmental Funds
Special Revenue Funds
Combining Balance Sheet (Continued)
June 30, 2025
105
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 1,492,708 $ 2,727,108 $ 1,603,374 $ 2,666,590 $ 2,133,186 $ Accounts receivable 257,117 - 1,474 - -
Interest receivable 8,595 15,703 9,232 15,461 12,547
Prepaid items - - - - -
Notes receivable, net - - - - -
Land held for resale - - - - -
Total assets $ 2,742,811 1,758,420 $ 1,614,080 $ 2,682,051 $ 2,145,733 $
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable 80,022 $ 47,584 $ 90,466 $ 34,547 $ 307,566 $ Retention payable 68,604 - - - 43,891
Due to other funds - - - - -
Total liabilities 47,584 148,626 90,466 34,547 351,457
Fund Balances:
Nonspendable - - - - -
Restricted 1,609,794 2,695,227 1,523,614 2,647,504 1,794,276 Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total fund balances 2,695,227 1,609,794 1,523,614 2,647,504 1,794,276 Total liabilities and fund balances $ 2,742,811 1,758,420 $ 1,614,080 $ 2,682,051 $ 2,145,733 $ (Continued)
City of Paramount
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
Special Revenue Funds
106
Measure W Sewer Public
Safe Clean Measure A Reconstruction Public Access
Water Parks Fees Art Fees Fees
ASSETS
Cash and investments 1,579,008 $ - $ 269,538 $ 687,917 $ 270,839 $ Accounts receivable 652,746 1,541,638 - - 6,647
Interest receivable 9,092 - 1,552 3,961 1,560
Prepaid items - 1,670 - - -
Notes receivable, net - - - - -
Land held for resale - - - - -
Total assets $ 1,543,308 2,240,846 $ 271,090 $ 691,878 $ 279,046 $
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable 23,238 345,972 - - -
Retention payable - 13,000 - - -
Due to other funds - 1,184,336 - - -
Total liabilities 1,543,308 23,238 - - -
Fund Balances:
Nonspendable - 1,670 - - -
Restricted 2,217,608 - 271,090 - 279,046
Committed - - - 691,878 -
Assigned - - - - -
Unassigned - (1,670) - - -
Total fund balances - 2,217,608 271,090 691,878 279,046 Total liabilities and fund balances $ 1,543,308 2,240,846 $ 271,090 $ 691,878 $ 279,046 $ (Continued)
Special Revenue Funds
City of Paramount
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
107
Total
General Community Special
Storm Drain Plan Service Benefit Revenue
Fees Fees Assessments Agreement Fund
ASSETS
Cash and investments 695,458 $ 513,279 $ 3,983 $ - $ 16,744,762 $ Accounts receivable - - 427 1,012,564 3,969,421
Interest receivable 4,005 2,956 - - 95,020
Prepaid items - - - - 1,670
Notes receivable, net - - - - 623,899
Land held for resale - - - - -
Total assets $ 516,235 699,463 $ 4,410 $ 1,012,564 $ 21,434,772 $
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable 4,939 51,386 $ 385 $ 184,744 $ 1,631,109 $ Retention payable - - - 8,861 147,161
Due to other funds - - - 577,617 1,921,119
Total liabilities 51,386 4,939 385 771,222 3,699,389
Fund Balances:
Nonspendable - - - - 1,670
Restricted - - 4,025 - 15,642,790
Committed 694,524 464,849 - - 1,851,251
Assigned - - - 241,342 241,342
Unassigned - - - - (1,670)
Total fund balances 464,849 694,524 4,025 241,342 17,735,383 Total liabilities and fund balances $ 516,235 699,463 $ 4,410 $ 1,012,564 $ 21,434,772 $ (Continued)
Nonmajor Governmental Funds
June 30, 2025
Special Revenue Funds
City of Paramount
Combining Balance Sheet (Continued)
108
Capital
Projects Fund Total
Paramount Nonmajor
Parking Governmental
Authority Funds
ASSETS
Cash and investments $ 16,744,762 - $
Accounts receivable 3,969,421 -
Interest receivable 95,020 -
Prepaid items 1,670 -
Notes receivable, net 623,899 -
Land held for resale 535,000 535,000
Total assets $ 21,969,772 535,000 $
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 1,631,109 - $
Retention payable 147,161 -
Due to other funds 1,921,119 -
Total liabilities 3,699,389 -
Fund Balances:
Nonspendable 1,670 -
Restricted 15,642,790 -
Committed 2,386,251 535,000
Assigned 241,342 -
Unassigned (1,670) -
Total fund balances 18,270,383 535,000
Total liabilities and fund balances $ 21,969,772 535,000 $ (Concluded)
City of Paramount
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
109
Community HOME Paramount After School
Development HOME American Housing Education
Block Grant Partnership Act Rescue Plan Authority & Safety REVENUES:
Interest and use of property - $ - $ - $ 1,975 $ 12,466 $ Intergovernmental revenues 1,007,099 223,236 105,834 - 2,894,075 Charges for services - - - - -
Other revenue - - - - -
Total revenues 223,236 1,007,099 105,834 1,975 2,906,541 EXPENDITURES:
Current:
General government 25,479 4,458 - - -
Community development 204,613 210,102 - 412,498 -
Public safety - - 105,834 - -
Community services 109,724 - - - 2,894,156
Public works - - - - -
Capital outlay:
Streets, sidewalks and signals 398,928 - - - -
Parks - - - - -
Other 268,355 - - - -
Debt Service:
Principal - - - - -
Interest - - - - -
Total expenditures 214,560 1,007,099 105,834 412,498 2,894,156 OTHER FINANCING SOURCES:
Issuance of debt - - - - -
Total other financing sources - - - - -
Net change in fund balances 8,676 - - (410,523) 12,385
FUND BALANCES:
Beginning of year 2,371 145,557 - 1,188,575 125,335
End of year $ 154,233 2,371 $ - $ 778,052 $ 137,720 $
(Continued)
City of Paramount
For the Year Ended June 30, 2025
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Special Revenue Funds
110
Disability
State Gas Traffic Waste AB2766 Access and
Tax Safety Reduction Fees Subvention Education
REVENUES:
Interest and use of property 52,020 $ - $ 23,646 $ 1,116 $ 3,620 $ Intergovernmental revenues 1,485,258 43,000 - 69,516 -
Charges for services - - 80,523 - 9,750
Other revenue - - - - -
Total revenues 43,000 1,537,278 104,169 70,632 13,370
EXPENDITURES:
Current:
General government - - - - -
Community development - - - - 5,431
Public safety - 43,000 - - -
Community services - - - - -
Public works 1,564,176 - 61,598 80,636 -
Capital outlay:
Streets, sidewalks and signals - - - - -
Parks - - - - -
Other - - - 51,778 -
Debt Service:
Principal - - - 76,650 -
Interest - - - 9,459 -
Total expenditures 43,000 1,564,176 61,598 218,523 5,431 OTHER FINANCING SOURCES:
Issuance of debt - - - 87,877 -
Total other financing sources - - - 87,877 -
Net change in fund balances - (26,898) 42,571 (60,014) 7,939 FUND BALANCES:
Beginning of year 1,016,019 - 420,519 60,014 68,080
End of year $ - 989,121 $ 463,090 $ - $ 76,019 $
(Continued)
Special Revenue Funds
For the Year Ended June 30, 2025
City of Paramount
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
111
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 88,885 $ 135,092 $ 73,349 $ 133,280 $ 117,025 $ Intergovernmental revenues 1,459,066 1,369,084 1,135,620 851,557 964,786 Charges for services - - - - -
Other revenue - - - - -
Total revenues 1,504,176 1,547,951 1,208,969 984,837 1,081,811 EXPENDITURES:
Current:
General government - 75,362 84,489 48,410 47,585
Community development - - - - -
Public safety - 112,435 - - -
Community services - 607,435 - - -
Public works - 197,277 116,930 27,411 27,403
Capital outlay:
Streets, sidewalks and signals 1,507,020 - 1,061,366 367,225 1,248,831 Parks - - - - -
Other 133,496 - - 181,200 -
Debt Service:
Principal - - - - -
Interest - - - - -
Total expenditures 992,509 1,640,516 1,262,785 624,246 1,323,819 OTHER FINANCING SOURCES:
Issuance of debt - - - - -
Total other financing sources - - - - -
Net change in fund balances 511,667 (92,565) (53,816) 360,591 (242,008) FUND BALANCES:
Beginning of year 1,702,359 2,183,560 1,577,430 2,286,913 2,036,284 End of year $ 2,695,227 1,609,794 $ 1,523,614 $ 2,647,504 $ 1,794,276 $ (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, 2025
112
Measure W Sewer Public
Safe Clean Measure A Reconstruction Public Access
Water Parks Fees Art Fees Fees
REVENUES:
Interest and use of property 81,662 $ - $ 13,581 $ 33,515 $ 13,518 $ Intergovernmental revenues 652,746 766,507 - - -
Charges for services - - - 33,370 21,343
Other revenue - - - 270,455 -
Total revenues 766,507 734,408 13,581 337,340 34,861
EXPENDITURES:
Current:
General government - - - 10,000 -
Community development - - - - -
Public safety - - - - -
Community services - 101,847 - 4,100 1,510
Public works 155,390 - - 24,000 11,000
Capital outlay:
Streets, sidewalks and signals - 402,823 - - -
Parks - 261,837 - - -
Other 55,459 - - 353,673 1,114
Debt Service:
Principal - - - - -
Interest - - - - -
Total expenditures 766,507 210,849 - 391,773 13,624
OTHER FINANCING SOURCES (USES):
Issuance of debt - - - - -
Total other financing sources - - - - -
Net change in fund balances - 523,559 13,581 (54,433) 21,237 FUND BALANCES:
Beginning of year 1,694,049 - 257,509 746,311 257,809
End of year $ - 2,217,608 $ 271,090 $ 691,878 $ 279,046 $ 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, 2025
113
Total
General Community Special
Storm Drain Plan Service Benefit Revenue
Fees Fees Assessments Agreement Fund
REVENUES:
Interest and use of property 34,546 $ 28,835 $ - $ - $ 848,132 $ Intergovernmental revenues - - - 864,094 13,891,478
Charges for services 51,085 41,851 14,142 - 252,064
Other revenue - - - - 270,455
Total revenues 70,686 85,631 14,142 864,094 15,262,129
EXPENDITURES:
Current:
General government - - 4,051 248,549 548,383
Community development - 233,956 - 99,450 1,166,050
Public safety - - - 104,308 365,577
Community services - - - 77,274 3,796,046
Public works - - 6,066 - 2,271,887
Capital outlay:
Streets, sidewalks and signals 17,007 - - 68,000 5,071,200 Parks - - - - 261,837
Other - - - 166,097 1,211,172
Debt Service:
Principal - - - - 76,650
Interest - - - - 9,459
Total expenditures 233,956 17,007 10,117 763,678 14,778,261 OTHER FINANCING SOURCES (USES):
Issuance of debt - - - - 87,877
Total other financing sources - - - - 87,877
Net change in fund balances (163,270) 68,624 4,025 100,416 571,745 FUND BALANCES:
Beginning of year 625,900 628,119 - 140,926 17,163,638
End of year $ 464,849 694,524 $ 4,025 $ 241,342 $ 17,735,383 $ (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, 2025
114
Capital
Projects Fund Total
Paramount Nonmajor
Parking Governmental
Authority Funds
REVENUES:
Interest and use of property $ 848,132 - $
Intergovernmental revenues 13,891,478 -
Charges for services 252,064 -
Other revenue 270,455 -
Total revenues 15,262,129 -
EXPENDITURES:
Current:
General government 548,383 -
Community development 1,166,050 -
Public safety 365,577 -
Community services 3,796,046 -
Public works 2,271,887 -
Capital outlay:
Streets, sidewalks and signals 5,071,200 -
Parks 261,837 -
Other 1,211,172 -
Debt Service:
Principal 76,650 -
Interest 9,459 -
Total expenditures 14,778,261 -
OTHER FINANCING SOURCES:
Issuance of debt 87,877 -
Total other financing sources 87,877 -
Net change in fund balances 571,745 -
FUND BALANCES:
Beginning of year 17,698,638 535,000
End of year $ 18,270,383 535,000 $
(Concluded)
City of Paramount
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
115
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental revenues 923,400 $ 1,336,700 $ 1,007,099 $ (329,601) $ Total revenues 1,336,700 923,400 1,007,099 (329,601)
EXPENDITURES:
Current:
General government 36,900 36,900 25,479 11,421
Community development 357,350 357,350 204,613 152,737
Community services 114,150 114,150 109,724 4,426
Capital outlay:
Streets, sidewalks and signals - 413,300 398,928 14,372 Other 415,000 530,000 268,355 261,645
Total expenditures 1,451,700 923,400 1,007,099 444,601
Net change in fund balance $ (115,000) - $ - 115,000 $
FUND BALANCE:
Beginning of year 2,371
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, 2025
116
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental revenues 596,400 $ 596,400 $ 223,236 $ (373,164) $ Total revenues 596,400 596,400 223,236 (373,164)
EXPENDITURES:
Current:
General government 9,850 9,850 4,458 5,392
Community development 586,550 586,550 210,102 376,448
Total expenditures 596,400 596,400 214,560 381,840
Net change in fund balance $ - - $ 8,676 8,676 $
FUND BALANCE:
Beginning of year 145,557
End of year $ 154,233
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, 2025
117
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental revenues 215,000 $ 215,000 $ 105,834 $ (109,166) $ Total revenues 215,000 215,000 105,834 (109,166)
EXPENDITURES:
Current:
Public Safety 215,000 215,000 105,834 109,166
Total expenditures 215,000 215,000 105,834 109,166
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, 2025
Budgeted Amounts
118
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property - $ - $ 1,975 $ 1,975 $
Total revenues - - 1,975 1,975
EXPENDITURES:
Current:
Community development 300,000 300,000 412,498 (112,498) Total expenditures 300,000 300,000 412,498 (112,498)
Net change in fund balance $ (300,000) (300,000) $ (410,523) (110,523) $ FUND BALANCE:
Beginning of year 1,188,575
End of year $ 778,052
Budgeted Amounts
City of Paramount
For the Year Ended June 30, 2025
Paramount Housing Authority Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 119
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 3,400 $ 3,400 $ 12,466 $ 9,066 $ Intergovernmental revenues 2,425,700 3,136,650 2,894,075 (242,575) Total revenues 3,140,050 2,429,100 2,906,541 (233,509)
EXPENDITURES:
Current:
Community services 2,425,700 3,136,650 2,894,156 242,494 Total expenditures 3,136,650 2,425,700 2,894,156 242,494 Net change in fund balance $ 3,400 3,400 $ 12,385 8,985 $ FUND BALANCE:
Beginning of year 125,335
End of year $ 137,720
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, 2025
120
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 29,400 $ 29,400 $ 52,020 $ 22,620 $ Intergovernmental revenues 1,436,550 1,436,550 1,485,258 48,708 Total revenues 1,465,950 1,465,950 1,537,278 71,328
EXPENDITURES:
Current:
Public works 1,454,950 2,038,400 1,564,176 474,224
Total expenditures 2,038,400 1,454,950 1,564,176 474,224 Net change in fund balance $ (572,450) 11,000 $ (26,898) 545,552 $ FUND BALANCE:
Beginning of year 1,016,019
End of year $ 989,121
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, 2025
121
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental revenues 100,000 $ 100,000 $ 43,000 $ (57,000) $ Total revenues 100,000 100,000 43,000 (57,000)
EXPENDITURES:
Current:
Public safety 100,000 100,000 43,000 57,000
Total expenditures 100,000 100,000 43,000 57,000
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, 2025
122
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 15,950 $ 15,950 $ 23,646 $ 7,696 $ Charges for services 73,500 73,500 80,523 7,023
Total revenues 89,450 89,450 104,169 14,719
EXPENDITURES:
Current:
Public works 396,150 396,150 61,598 334,552
Total expenditures 396,150 396,150 61,598 334,552
Net change in fund balance $ (306,700) (306,700) $ 42,571 349,271 $ FUND BALANCE:
Beginning of year 420,519
End of year $ 463,090
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, 2025
123
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 2,250 $ 2,250 $ 1,116 $ (1,134) $ Intergovernmental revenues 70,000 70,000 69,516 (484)
Total revenues 72,250 72,250 70,632 (1,618)
EXPENDITURES:
Current:
General government 4,200 14,200 - 14,200
Public works 16,000 16,000 80,636 (64,636)
Capital outlay:
Other - 62,500 51,778 10,722
Debt service:
Principal 49,050 49,050 76,650 (27,600)
Interest - - 9,459 (9,459)
Total expenditures 141,750 69,250 218,523 (76,773)
OTHER FINANCING SOURCES:
Issuance of debt - - 87,877 (87,877)
Total other financing sources - - 87,877 (87,877)
Net change in fund balance $ (69,500) 3,000 $ (60,014) 9,486 $ FUND BALANCE:
Beginning of year 60,014
End of year $ -
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, 2025
124
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 2,150 $ 2,150 $ 3,620 $ 1,470 $ Charges for services 8,500 8,500 9,750 1,250
Total revenues 10,650 10,650 13,370 2,720
EXPENDITURES:
Current:
Community development 40,000 40,000 5,431 34,569
Total expenditures 40,000 40,000 5,431 34,569
Net change in fund balance $ (29,350) (29,350) $ 7,939 37,289 $ FUND BALANCE:
Beginning of year 68,080
End of year $ 76,019
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, 2025
Budgeted Amounts
125
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 29,050 $ 29,050 $ 88,885 $ 59,835 $ Intergovernmental revenues 1,280,500 1,280,500 1,459,066 178,566 Total revenues 1,309,550 1,309,550 1,547,951 238,401
EXPENDITURES:
Capital outlay:
Streets, sidewalks and signals 1,000,000 2,806,299 1,507,020 1,299,279 Other 250,000 250,000 133,496 116,504
Total expenditures 3,056,299 1,250,000 1,640,516 1,415,783 Net change in fund balance $ (1,746,749) 59,550 $ (92,565) 1,654,184 $ FUND BALANCE:
Beginning of year 1,702,359
End of year $ 1,609,794
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, 2025
Budgeted Amounts
126
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 71,500 $ 71,500 $ 135,092 $ 63,592 $ Intergovernmental revenues 1,467,600 1,467,600 1,369,084 (98,516) Charges for services 1,500 1,500 - (1,500)
Total revenues 1,540,600 1,540,600 1,504,176 (36,424)
EXPENDITURES:
Current:
General government 68,350 68,350 75,362 (7,012)
Community development - 35,438 - 35,438
Public safety 115,850 115,850 112,435 3,415
Community services 711,750 701,750 607,435 94,315
Public works 173,500 183,500 197,277 (13,777)
Capital outlay
Streets, sidewalks and signals - 400,000 - 400,000
Total expenditures 1,504,888 1,069,450 992,509 512,379
Net change in fund balance $ 35,712 471,150 $ 511,667 475,955 $ FUND BALANCE:
Beginning of year 2,183,560
End of year $ 2,695,227
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, 2025
Budgeted Amounts
127
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 50,750 $ 50,750 $ 73,349 $ 22,599 $ Intergovernmental revenues 1,217,300 1,217,300 1,135,620 (81,680) Total revenues 1,268,050 1,268,050 1,208,969 (59,081)
EXPENDITURES:
Current:
General government 75,600 75,600 84,489 (8,889)
Public works 98,950 109,300 116,930 (7,630)
Capital outlay:
Streets, sidewalks and signals 1,000,000 2,397,159 1,061,366 1,335,793 Total expenditures 2,582,059 1,174,550 1,262,785 1,319,274 Net change in fund balance $ (1,314,009) 93,500 $ (53,816) 1,260,193 $ FUND BALANCE:
Beginning of year 1,577,430
End of year $ 1,523,614
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, 2025
Budgeted Amounts
128
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 64,500 $ 64,500 $ 133,280 $ 68,780 $ Intergovernmental revenues 913,000 913,000 851,557 (61,443) Total revenues 977,500 977,500 984,837 7,337
EXPENDITURES:
Current:
General government 51,400 49,700 48,410 1,290
Public works 12,950 12,950 27,411 (14,461)
Capital outlay:
Streets, sidewalks and signals 1,750,000 4,098,104 367,225 3,730,879 Other - 173,500 181,200 (7,700)
Total expenditures 4,334,254 1,814,350 624,246 3,710,008 Net change in fund balance $ (3,356,754) (836,850) $ 360,591 3,717,345 $ FUND BALANCE:
Beginning of year 2,286,913
End of year $ 2,647,504
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, 2025
Budgeted Amounts
129
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 58,450 $ 58,450 $ 117,025 $ 58,575 $ Intergovernmental revenues 1,034,700 1,034,700 964,786 (69,914) Total revenues 1,093,150 1,093,150 1,081,811 (11,339)
EXPENDITURES:
Current:
General government 49,700 49,700 47,585 2,115
Public works 28,950 28,950 27,403 1,547
Capital outlay:
Streets, sidewalks and signals 400,000 2,373,990 1,248,831 1,125,159 Total expenditures 2,452,640 478,650 1,323,819 1,128,821 Net change in fund balance $ (1,359,490) 614,500 $ (242,008) 1,117,482 $ FUND BALANCE:
Beginning of year 2,036,284
End of year $ 1,794,276
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, 2025
Budgeted Amounts
130
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 10,450 $ 10,450 $ 81,662 $ 71,212 $ Intergovernmental revenues 643,000 643,000 652,746 9,746 Total revenues 653,450 653,450 734,408 80,958
EXPENDITURES:
Current:
Public works 195,000 195,000 155,390 39,610
Capital outlay:
Other 100,000 375,621 55,459 320,162
Total expenditures 570,621 295,000 210,849 359,772
Net change in fund balance $ 82,829 358,450 $ 523,559 440,730 $ FUND BALANCE:
Beginning of year 1,694,049
End of year $ 2,217,608
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, 2025
Budgeted Amounts
131
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental revenues 456,950 $ 1,321,775 $ 766,507 $ (555,268) $ Total revenues 1,321,775 456,950 766,507 (555,268)
EXPENDITURES:
Current:
Community services 150,200 156,950 101,847 55,103
Capital outlay:
Streets, sidewalks and signals 300,000 563,650 402,823 160,827 Parks - 1,716,475 261,837 1,454,638
Total expenditures 2,437,075 450,200 766,507 1,670,568
Net change in fund balance $ (1,115,300) 6,750 $ - 1,115,300 $ 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, 2025
Budgeted Amounts
132
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 8,850 $ 8,850 $ 13,581 $ 4,731 $ Charges for services 1,000 1,000 - (1,000)
Total revenues 9,850 9,850 13,581 3,731
Net change in fund balance $ 9,850 9,850 $ 13,581 $ 3,731 $ FUND BALANCE:
Beginning of year 257,509
End of year $ 271,090
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, 2025
Budgeted Amounts
133
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 25,950 $ 25,950 $ 33,515 $ 7,565 $ Charges for services 500,000 500,000 33,370 (466,630)
Other revenue - - 270,455 270,455
Total revenues 525,950 525,950 337,340 (188,610)
EXPENDITURES:
Current:
General government 7,500 7,500 10,000 (2,500)
Community services 4,100 4,100 4,100 -
Public works 100,000 100,000 24,000 76,000
Capital outlay:
Other 100,000 566,638 353,673 212,965
Total expenditures 678,238 211,600 391,773 286,465
Net change in fund balance $ (152,288) 314,350 $ (54,433) 97,855 $ FUND BALANCE:
Beginning of year 746,311
End of year $ 691,878
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, 2025
Budgeted Amounts
134
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 7,850 $ 7,850 $ 13,518 $ 5,668 $ Charges for services 48,000 48,000 21,343 (26,657)
Total revenues 55,850 55,850 34,861 (20,989)
EXPENDITURES:
Current:
Community services 5,000 5,000 1,510 3,490
Public works 11,000 11,000 11,000 -
Capital outlay:
Other 150,000 150,000 1,114 148,886
Total expenditures 166,000 166,000 13,624 152,376
Net change in fund balance $ (110,150) (110,150) $ 21,237 131,387 $ FUND BALANCE:
Beginning of year 257,809
End of year $ 279,046
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, 2025
Budgeted Amounts
135
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 20,300 $ 20,300 $ 34,546 $ 14,246 $ Charges for services 72,000 72,000 51,085 (20,915)
Total revenues 92,300 92,300 85,631 (6,669)
EXPENDITURES:
Capital outlay:
Streets, sidewalks and signals 200,000 200,000 17,007 182,993 Total expenditures 200,000 200,000 17,007 182,993
Net change in fund balance $ (107,700) 92,300 $ 68,624 176,324 $ FUND BALANCE:
Beginning of year 625,900
End of year $ 694,524
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, 2025
Budgeted Amounts
136
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest and use of property 21,400 $ 21,400 $ 28,835 $ 7,435 $ Charges for services 43,000 43,000 41,851 (1,149)
Total revenues 64,400 64,400 70,686 6,286
EXPENDITURES:
Current:
Community development 518,000 518,000 233,956 284,044
Total expenditures 518,000 518,000 233,956 284,044
Net change in fund balance $ (453,600) (453,600) $ (163,270) 290,330 $ FUND BALANCE:
Beginning of year 628,119
End of year $ 464,849
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, 2025
Budgeted Amounts
137
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 14,150 $ 14,150 $ 14,142 $ (8) $
Total revenues 14,150 14,150 14,142 (8)
EXPENDITURES:
Current:
General government 3,700 3,700 4,051 (351)
Public works - - 6,066 (6,066)
Total revenues 3,700 3,700 10,117 (6,417)
Net change in fund balance $ 10,450 10,450 $ 4,025 (6,425) $ FUND BALANCE:
Beginning of year -
End of year $ 4,025
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, 2025
Budgeted Amounts
138
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental revenues 1,400,000 $ 1,541,105 $ 864,094 $ (677,011) $ Total revenues 1,541,105 1,400,000 864,094 (677,011)
EXPENDITURES:
Current:
General government 185,000 285,000 248,549 36,451
Community development 312,300 212,300 99,450 112,850
Public safety 170,500 170,500 104,308 66,192
Community service 217,000 217,000 77,274 139,726
Public works - 200,000 - 200,000
Capital outlay
Streets, sidewalks and signals - 68,000 68,000 -
Other 805,231 570,200 166,097 639,134
Total expenditures 1,958,031 1,455,000 763,678 1,194,353 Net change in fund balance $ (416,926) (55,000) $ 100,416 517,342 $ FUND BALANCE:
Beginning of year 140,926
End of year $ 241,342
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, 2025
Budgeted Amounts
139
This page intentionally left blank.
140
STATISTICAL SECTION
(Unaudited)
141
This page intentionally left blank.
142
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. 144 - 153 Revenue Capacity
These schedules contain information to help the reader assess one of the government's most significant local revenue sources - property tax. 154 - 158
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. 159 - 164 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. 165 - 166 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. 167 - 171 City of Paramount
Statistical Section Overview
(Unaudited)
143
2016 2017 2018 2019 2020
Governmental activities:
Net investment in capital assets $ 79,225,417 79,690,688 $ 76,381,563 $ 75,437,457 $ 72,665,264 $ Restricted 4,181,878 4,309,004 5,874,235 5,553,952 6,161,908 Unrestricted 8,844 (2,208,468) (6,436,004) (5,371,456) (5,601,349) Total governmental activities net position 84,008,536 81,198,827 75,819,794 75,619,953 73,225,823 Business-type activities:
Net investment in capital assets 17,328,598 17,905,387 9,979,726 16,275,296 16,132,664 Restricted - - - - -
Unrestricted 1,517,233 709,203 7,573,532 1,556,622 1,257,073 Total business-type activities net position 18,614,590 18,845,831 17,553,258 17,831,918 17,389,737 Primary government:
Net investment in capital assets 96,554,015 97,596,075 86,361,289 91,712,753 88,797,928 Restricted 4,181,878 4,309,004 5,874,235 5,553,952 6,161,908 Unrestricted (691,235) 718,047 1,137,528 (3,814,834) (4,344,276) Total primary government net position 102,623,126 $ 100,044,658 $ 93,373,052 $ 93,451,871 $ 90,615,560 $ 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)
144
2021 2022 2023 2024 2025
Governmental activities:
Net investment in capital assets $ 73,014,467 70,923,502 $ 75,768,195 $ 76,132,951 $ 82,536,876 $ Restricted 10,792,349 11,040,989 12,716,249 16,004,360 16,303,894 Unrestricted (1,963,088) 5,107,970 19,094,624 24,087,382 29,172,207 Total governmental activities net position 80,001,403 88,914,786 107,579,068 116,224,693 128,012,977 Business-type activities:
Net investment in capital assets 16,310,930 12,428,094 16,976,379 21,013,078 16,838,647 Restricted - - - - -
Unrestricted 3,239,458 2,939,592 1,550,050 (4,194,981) (1,100,876) Total business-type activities net position 15,367,686 19,550,388 18,526,429 16,818,097 15,737,771 Primary government:
Net investment in capital assets 89,325,397 83,351,596 92,744,574 97,146,029 99,375,523 Restricted 10,792,349 11,040,989 12,716,249 16,004,360 16,303,894 Unrestricted 8,347,428 976,504 20,644,674 19,892,401 28,071,331 Total primary government net position 95,369,089 $ 108,465,174 $ 126,105,497 $ 133,042,790 $ 143,750,748 $ 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
145
2016 2017 2018 2019 2020
Expenses:
Governmental activities:
General government $ 7,308,976 6,846,940 $ 7,184,690 $ 7,088,630 $ 7,357,400 $ Community development 2,039,989 5,007,589 2,461,135 1,926,054 2,405,848 Public safety 11,139,959 11,218,541 11,888,055 11,862,334 12,179,427 Community services and recreation 6,330,295 5,830,850 6,368,824 6,413,969 6,121,450 Public works 10,620,526 10,571,784 10,611,799 10,440,155 12,053,263 Interest on long-term debt - - - - -
Total governmental activities expenses 39,475,704 37,439,745 38,514,503 37,731,142 40,117,388 Business-type activities:
Water 7,685,532 7,677,359 8,581,886 7,793,957 8,178,235 Total business-type activities expenses 7,685,532 7,677,359 8,581,886 7,793,957 8,178,235 Total primary government expenses 47,161,236 45,117,104 47,096,389 45,525,099 48,295,623 Program revenues:
Governmental activities:
Charges for services:
General government 167,554 199,877 185,444 191,359 222,426 Community development 381,084 508,124 486,252 381,846 229,201 Public safety 130,937 119,425 108,650 138,403 107,691
Community services and recreation 264,633 282,814 213,050 215,788 96,963 Public works 759,040 675,278 826,430 772,886 614,480
Operating grants and contributions 7,541,476 7,409,586 8,574,899 7,971,987 8,100,026 Capital grants and contributions 2,419,414 2,840,656 3,226,132 3,252,151 3,524,293 Total governmental activities
program revenues 11,811,989 11,887,909 13,620,857 12,924,420 12,895,080 Business-type activities:
Charges for services:
Water 6,972,036 7,812,294 7,946,567 7,750,500 7,589,241 Operating grants and contributions - - - - -
Capital grants and contributions - - 106,368 166,689 -
Total business-type activities
program revenues 6,972,036 7,812,294 8,052,935 7,917,189 7,589,241 Total primary government
program revenues 18,784,025 19,700,203 21,673,792 20,841,609 20,484,321 City of Paramount
Table 2
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
146
2016 2017 2018 2019 2020
Net revenues (expenses):
Governmental activities (27,663,715) (25,551,836) (24,893,646) (24,806,722) (27,222,308) Business-type activities (713,496) 134,935 (528,951) 123,232 (588,994) Total net revenues (expenses) (28,377,211) (25,416,901) (25,422,597) (24,683,490) (27,811,302) General revenues and other changes in net position:
Governmental activities:
Taxes:
Sales tax 7,278,424 6,129,480 7,712,771 8,449,883 8,265,394 In-Lieu Sales Tax - 1,293,617 - - -
Transaction & Use Tax - - - - -
Utility Users tax 3,679,314 3,981,658 3,757,405 3,735,391 3,484,876 Franchise Tax 1,637,474 1,635,366 1,784,998 1,818,389 1,885,967 Property Tax 2,099,550 2,052,016 2,306,211 2,341,486 2,563,106 Business License 962,675 977,307 947,111 988,043 893,150 Investment earnings 97,769 64,064 202,802 362,253 320,851 Motor Vehicle license fees, unrestricted 5,779,305 5,468,904 6,068,259 6,355,849 6,915,240 Other revenues 303,949 386,535 647,385 555,587 505,206
Extraordinary item-Redevelopment Agency 903,667 1,496,165 484,475 - - Transfers - - - - (5,612)
Total governmental activities 23,485,112 22,742,127 23,911,417 24,606,881 24,828,178 Business-type activities:
Investment income 13,483 24,536 56,884 100,630 90,318
Other revenues 54,673 48,722 56,697 54,798 50,883
Extraordinary item-Redevelopment Agency 1,383,986 23,048 - - - Transfers - - - - 5,612
Total business-type activities 1,452,142 96,306 113,581 155,428 146,813 Total primary government 24,937,254 22,838,433 24,024,998 24,762,309 24,974,991 Changes in net position
Governmental activities (4,178,603) (2,809,709) (982,229) (199,841) (2,394,130) Business-type activities 738,646 231,241 (415,370) 278,660 (442,181) Total primary government (3,439,957) $ (2,578,468) $ (1,397,599) $ 78,819 $ (2,836,311) $ 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)
147
2021 2022 2023 2024 2025
Expenses:
Governmental activities:
General government $ 8,888,563 7,348,010 $ 10,059,418 $ 8,911,185 $ 8,939,850 $ Community development 3,166,168 3,142,509 4,817,632 3,509,880 3,866,190 Public safety 13,637,499 12,749,502 15,311,548 15,675,326 16,065,985 Community services and recreation 6,592,797 5,864,047 7,774,667 11,440,951 10,509,716 Public works 13,309,135 12,475,482 16,159,020 15,169,110 17,744,565 Interest on long-term debt 389,603 - 365,104 368,796 393,491 Total governmental activities expenses 41,579,550 45,983,765 54,487,389 55,075,248 57,519,797 Business-type activities:
Water 9,861,949 8,895,635 11,427,517 11,240,964 11,481,307 Total business-type activities expenses 9,861,949 8,895,635 11,427,517 11,240,964 11,481,307 Total primary government expenses 51,441,499 54,879,400 65,914,906 66,316,212 69,001,104 Program revenues:
Governmental activities:
Charges for services:
General government 193,393 210,847 183,320 240,018 259,278 Community development 603,104 741,976 3,687,530 2,587,812 3,022,624 Public safety 84,128 69,127 137,960 110,616 124,947
Community services and recreation 60,415 134,785 240,657 251,956 210,365 Public works 790,144 5,549,354 260,244 258,485 279,104
Operating grants and contributions 9,449,889 10,313,132 17,729,029 10,202,595 10,512,887 Capital grants and contributions 4,577,817 4,917,424 6,256,776 5,835,628 10,126,880 Total governmental activities
program revenues 15,758,890 21,936,645 28,495,516 19,487,110 24,536,085 Business-type activities:
Charges for services:
Water 7,796,180 8,414,322 8,355,545 9,280,735 10,032,497 Operating grants and contributions - - 3,438,975 - -
Capital grants and contributions - - 757,063 - -
Total business-type activities
program revenues 7,796,180 8,414,322 12,551,583 9,280,735 10,032,497 Total primary government
program revenues 23,555,070 30,350,967 41,047,099 28,767,845 34,568,582 City of Paramount
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
148
2021 2022 2023 2024 2025
Net revenues (expenses):
Governmental activities (25,820,660) (24,047,120) (25,991,873) (35,588,138) (32,983,712) Business-type activities (2,065,769) (481,313) 1,124,066 (1,960,229) (1,448,810) Total net revenues (expenses) (27,886,429) (24,528,433) (24,867,807) (37,548,367) (34,432,522) General revenues and other changes in net position:
Governmental activities:
Taxes:
Sales tax 11,483,195 9,459,141 12,261,365 12,187,616 10,699,660 In-Lieu Sales Tax - - - - -
Transaction & Use Tax 7,238,769 5,585,397 8,113,036 8,551,198 7,509,858 Utility Users tax 4,183,383 3,261,854 4,492,823 4,652,691 4,981,902 Franchise Tax 2,049,479 1,904,943 2,196,469 2,471,532 2,616,822 Property Tax 2,847,420 2,763,914 3,059,499 3,095,924 3,255,950 Business License 988,969 893,927 962,760 1,046,281 1,409,135 Investment earnings 57,848 116,104 793,392 2,239,275 2,754,193 Motor Vehicle license fees, unrestricted 7,573,107 7,362,208 8,088,374 8,406,004 8,968,371 Other revenues 1,197,449 1,248,752 2,475,170 1,583,242 2,576,105 Extraordinary item-Redevelopment Agency - - - - -
Transfers (4,659,116) - - - -
Total governmental activities 32,596,240 32,960,503 42,442,888 44,233,763 44,771,996 Business-type activities:
Investment income 17,668 1,349 65,243 251,897 368,484
Other revenues 26,050 3,550 - - -
Extraordinary item-Redevelopment Agency - - - - -
Transfers - 4,659,116 - - -
Total business-type activities 43,718 4,664,015 65,243 251,897 368,484 Total primary government 32,639,958 37,624,518 42,508,131 44,485,660 45,140,480 Changes in net position
Governmental activities 6,775,580 8,913,383 16,451,015 8,645,625 11,788,284 Business-type activities (2,022,051) 4,182,702 1,189,309 (1,708,332) (1,080,326) Total primary government 4,753,529 $ 13,096,085 $ 17,640,324 $ 6,937,293 $ 10,707,958 $ 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
2016 2017 2018 2019 2020
General fund:
Nonspendable 355,213 $ 273,028 $ 276,969 $ 558,425 $ 299,648 $ Restricted - - - - -
Commited - - - - -
Assigned 3,563,827 2,620,286 3,675,028 4,613,579 5,419,180 Unassigned 12,121,484 12,557,530 12,647,525 12,776,116 12,798,092 Total general fund 16,040,524 15,450,844 16,599,522 17,948,120 18,516,920 All other governmental funds:
Nonspendable 535,000 - - - -
Restricted 4,309,004 4,909,124 6,448,479 6,245,337 7,237,049 Committed 1,130,117 1,130,425 1,406,939 1,412,888 1,394,450 Assigned - - - - -
Unassigned - - - - -
Total all other governmental funds 5,974,121 $ 6,039,549 $ 7,855,418 $ 7,658,225 $ 8,631,499 $ 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)
150
2021 2022 2023 2024 2025
General fund:
Nonspendable 372,030 $ 419,767 $ 437,805 $ 302,963 $ 1,407,693 $ Restricted - - 7,826 10,501 13,278
Commited - - 23,751,035 23,932,500 29,246,300
Assigned 8,316,428 10,202,216 21,365,038 23,827,602 19,732,165 Unassigned 14,690,303 19,185,452 1,637,546 2,430,966 2,066,630 Total general fund 23,378,761 29,807,435 47,199,250 50,504,532 52,466,066 All other governmental funds:
Nonspendable - - 21,535 38,338 1,670
Restricted 9,645,978 12,164,069 12,687,421 15,302,486 16,130,869 Committed 1,395,011 1,144,636 1,781,890 2,503,392 2,386,251 Assigned - - - 140,926 241,342
Unassigned - - - (6,400) (1,670)
Total all other governmental funds 11,040,989 $ 13,308,705 $ 14,490,846 $ 17,978,742 $ 18,758,462 $ 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)
151
2016 2017 2018 2019 2020
Revenues:
Taxes 16,069,444 $ 15,657,437 $ 16,508,496 $ 16,508,496 $ 17,092,493 $ Licenses and permits 788,472 717,919 814,146 814,146 620,630 Fines & Penalties 727,000 738,338 921,744 921,744 820,853 Interest & use of property 152,768 161,069 293,406 293,406 437,853 Intergovernmental revenues 13,628,376 14,146,748 15,780,459 15,780,459 16,553,788 Charges for services 985,224 866,124 949,527 949,527 590,600 Other 1,461,768 1,438,161 1,771,286 1,771,286 1,593,822 Total revenues 33,813,052 33,725,796 37,039,064 37,039,064 37,710,039 Expenditures
Current:
General government 5,533,812 5,737,211 6,117,349 6,117,349 6,679,602 Community development 4,908,494 1,640,630 1,962,771 1,962,771 1,955,450 Public safety 11,080,181 10,744,979 11,629,250 11,629,250 11,876,632 Community services & recreation 4,861,967 4,950,485 5,219,398 5,219,398 5,032,344 Public works 6,173,761 6,892,265 6,674,196 6,674,196 7,316,460 Debt service:
Principal retirement - - - - -
Interest and fiscal charges - - - - -
Capital Outlay
Water - - 106,368 106,368 5,612
Streets, sidewalks and signals 3,758,222 3,093,146 2,223,530 2,223,530 2,872,345 Parks 566,101 1,165,442 245,589 245,589 230,656
Other 542,950 205,254 408,034 408,034 296,411
Total expenditures 37,425,488 34,429,412 34,586,485 34,586,485 36,265,512 Excess (deficiency) of
revenues over (under)
expenditures (3,612,436) (703,616) 2,452,579 2,452,579 1,444,527 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 97,547
Payment to bond escrow agent - - - - -
Total other financing
sources (uses) - - 27,493 27,493 97,547
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 (3,612,436) $ (703,616) $ 2,964,547 $ 2,964,547 $ 1,542,074 $ 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)
152
2021 2022 2023 2024 2025
Revenues:
Taxes 23,869,176 $ 28,791,215 $ 31,085,952 $ 32,005,239 $ 30,473,327 $ Licenses and permits 765,869 831,664 1,734,089 1,229,352 1,701,436 Fines & Penalties 825,192 985,543 1,240,041 1,158,077 1,172,385 Interest & use of property 181,255 182,850 948,099 2,737,054 3,512,907 Intergovernmental revenues 19,447,825 25,340,508 31,242,078 23,239,949 29,050,204 Charges for services 905,546 1,150,541 2,115,365 1,257,819 1,008,402 Other 2,331,030 2,056,802 2,514,016 1,565,001 2,817,125 Total revenues 48,325,893 59,339,123 70,879,640 63,192,491 69,735,786 Expenditures
Current:
General government 7,150,058 24,430,744 7,828,026 8,700,097 9,498,523 Community development 3,144,315 2,616,052 4,026,101 3,570,394 4,177,224 Public safety 12,721,146 13,056,996 14,106,110 15,420,857 16,247,748 Community services & recreation 4,996,113 5,166,445 6,006,697 7,000,358 7,652,506 Public works 7,691,666 7,937,654 9,690,038 10,080,500 12,961,124 Debt service:
Principal retirement - 26,239 1,348,743 1,341,611 1,798,879 Interest and fiscal charges - 381,263 328,359 332,051 356,746 Capital Outlay
Water - - - - -
Streets, sidewalks and signals 3,185,722 4,208,347 6,477,107 2,787,251 7,293,727 Parks 739,645 2,543,074 1,474,302 2,223,749 2,712,468
Other 483,137 1,691,886 1,347,079 4,636,732 5,601,460
Total expenditures 40,111,802 44,901,912 52,632,562 56,093,600 68,300,405 Excess (deficiency) of
revenues over (under)
expenditures 8,214,091 14,437,211 18,247,078 7,098,891 1,435,381 Other financing sources (uses):
Transfers in - - - - -
Transfers out (1,000,000) (5,859,116) - - -
Issuance of debt - - 326,879 - 1,305,873
Purchase finance 57,240 118,295 - - -
Payment to bond escrow agent - - - - -
Total other financing
sources (uses) (942,760) (5,740,821) 326,879 - 1,305,873 Extraordinary and special items:
Extraordinary item-RDA - - - - -
Total extraordinary and
special items - - - - -
Net change in fund balances 7,271,331 $ 8,696,390 $ 18,573,957 $ 7,098,891 $ 2,741,254 $ Debt service as a percentage of
noncapital expenditures 0.0% 1.1% 3.9% 3.4% 4.0%
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)
153
2014 2015 2016 2017 2018 2019
Apparel Stores 22,999 $ 22,718 $ 22,954 $ 19,971 $ 20,746 $ 20,803 $ Food Stores 24,989 25,551 22,141 20,589 21,936 22,665
Eating and Drinking Places 51,696 57,716 62,348 69,583 75,944 79,620 Building Materials 64,578 85,481 99,688 108,049 103,876 114,502 Auto Dealers and Supplies 13,531 15,294 16,959 17,004 16,212 12,373 Service Stations 98,520 81,019 67,146 72,252 83,100 88,083 Other Retail Stores 101,268 101,743 107,051 97,628 102,865 101,220 All Other Outlets 391,536 331,778 325,153 352,689 380,354 412,964 Total 769,117 $ 721,300 $ 723,440 $ 757,765 $ 805,033 $ 852,230 $ Sales and Use Tax rate 9.00% 9.00% 9.50% 9.50% 9.50% 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
Calendar Year
City of Paramount
Table 5
Taxable Sales by Category
Last Ten Calendar Years
(modified accrual basis of accounting)
154
2020 2021 2022 2023 2024
Apparel Stores 18,176 $ 25,989 $ 26,320 $ 27,596 $ $ 25,627 Food Stores 25,257 23,682 24,624 26,201 27,407
Eating and Drinking Places 72,511 89,660 96,246 101,885 100,030 Building Materials 123,355 132,835 136,772 149,665 146,593 Auto Dealers and Supplies 17,916 18,721 19,356 18,262 17,677 Service Stations 63,259 107,373 142,325 131,804 121,688 Other Retail Stores 105,717 125,870 124,386 119,281 115,764 All Other Outlets 434,861 503,012 644,036 678,138 564,224 Total 861,052 $ 1,027,142 $ 1,214,065 $ 1,252,832 $ 1,119,010 $ 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
155
This page intentionally left blank.
156
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 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%
2024 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
157
2025 2016
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 Chevron Service Stations Chao Petroleum Service Stations Cort Furniture Rental Home Furnishings Chemco Drugs/Chemicals Del Amo Motorsports of LA Boats/Motorcycles Chevron Service Stations Demaria Electric Motor Heavy Industrial Cort Furniture Rental Home Furnishings Falcon Fuels Petroleum Product/Equipment Drees Wood Products Contractors HD Supply Building Materials Falcon Fuels Petroleum Prod/Equipment Home Depot Building Materials GCR Tire Center Automotive Supply Stores JD Fuel Paramount Service Stations Hardy Roofing Materials Contractors Northgate Market Grocery Stores HD Supply Building Materials Pacific Gypsum Supply Contractors Home Depot Building Materials Petro Bras Service Stations Jankovich Company Petroleum Prod/Equipment Rocket Service Stations Kalmar Heavy Industrial
Ross Family Apparel Lindsay Lumber Building Materials
Sams Roofing Material Building Materials Mid Cities Motorsports Boats/Motorcycles Sherwin Williams Paint/Glass/Wallpaper Northgate Market Grocery Stores Sinclair Service Stations Petro Bras Service Stations
Stater Bros Grocery Stores Ross Family Apparel
Surface Preparation Solutions Heavy Industrial Sams Roofing Material Building Materials Tams Superburgers Quick-Service Restaurants 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 64.33% 58.55%
Period: January 2025 thru December 2025 January 2016 thru December 2016 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
158
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 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 2.72% 677.83% 2025 11,324,812 1,004,993 12,329,805 20,351,846 1,672,792 16,427 22,041,065 34,370,870 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
159
Fiscal Year Tax Percent of
Ended Allocation Assessed Per
June 30 Bonds Total Value Capita
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% -
2025 - - 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
160
2024-25 Assessed Valuation $ 5,613,803
Estimated
Share of
Percentage Outstanding Overlapping
Applicable (1) Debt 6/30/25 Debt
Overlapping Debt Repaid with Property Taxes:
Metropolitan Water District (1) 0.138% 17,155,000 $ 23,674 $ Cerritos Community College District Debt Service 0.005% 510,110,300 25,506 Compton Community College District Debt Service 18.672% 140,875,266 26,304,230 Compton Unified School District Debt Service 0.625% 224,563,023 1,403,519 Downey Unified School District Debt Service 0.019% 352,660,294 67,005 Paramount Unified School District Debt Service 65.418% 173,576,371 113,550,190 Total overlapping debt repaid with property taxes 1,418,940,254 141,374,124 Total overlapping debt $ 141,374,124 1,418,940,254
City direct debt 12,329,805
Total direct and overlapping debt $ 153,703,929
Notes:
Sources:
Avenue Insights
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
City of Paramount
Table 10
Direct and Overlapping Governmental Activities Debt
As of June 30, 2025
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimat by determining the portion of the overlapping district’s assessed value that is within the boundaries of the city divided by the district’s total taxable assessed value.
161
2016 2017 2018 2019 2020
Assessed valuation 3,441,673,952 $ 3,635,948,857 $ 3,815,902,453 $ 3,999,245,043 $ 4,341,952,634 $ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 860,418,488 908,987,214 953,975,613 999,811,261 1,085,488,159 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 129,062,773 136,348,082 143,096,342 149,971,689 162,823,224 Total net debt applicable to limit:
General obligation bonds - - - - -
Legal debt margin 129,062,773 $ 136,348,082 $ 143,096,342 $ 149,971,689 $ 162,823,224 $ 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 2024/2025 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
162
2021 2022 2023 2024 2025
Assessed valuation 4,626,441,163 $ 4,745,115,375 $ 5,076,365,083 $ 5,269,970,741 $ 5,613,803,141 $ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,156,610,291 1,186,278,844 1,269,091,271 1,317,492,685 1,403,450,785 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 173,491,544 177,941,827 190,363,691 197,623,903 210,517,618 Total net debt applicable to limit:
General obligation bonds - - - - -
Legal debt margin 173,491,544 $ 177,941,827 $ 190,363,691 $ 197,623,903 $ 210,517,618 $ 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 2024/2025 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
163
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 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)
2025 10,032,497 9,880,757 151,740 642,885 0.24
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
164
Per
Calendar Year Personal Capita
Ended Income Personal Unemployment
December 31 Population (1) (in thousands) (2) Income (2) Rate (3) 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%
2024 52,371 1,303,577 24,891 5.9%
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
165
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
2025 2016
City of Paramount
Table 14
Principal Employers
Current Year and Nine Years Ago
166
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General Government 25.7 25.8 26.2 27.7 28.7 29.1 26.3 27.4 25.2 25.2 Community Development 8.8 9.0 9.7 9.9 9.9 9.0 10.2 10.7 10.2 10.2 Public Safety 27.7 25.2 26.4 23.6 24.6 24.4 22.2 25.0 24.1 24.1 Community Services and Recreation 84.8 88.0 78.0 72.1 69.5 68.4 59.8 57.0 51.6 51.6 Public Works 47.9 44.5 42.8 43.3 43.3 46.5 50.6 51.0 45.6 45.6 Total 192.5 194.9 183.1 176.6 176.0 177.4 169.1 171.1 156.7 156.7 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
167
2016 2017 2018 2019 2020
Community Development
Permits 1,438 1,245 1,315 1,207 907
Inspections 9,408 11,617 13,460 13,051 9,308
Public Safety:
Arrests 1,523 1,389 1,264 1,286 1,318
Parking Citations Issued 14,348 13,524 17,723 15,541 13,238 Community Services and Recreation:
Number of Recreation Classes 29 38 47 33 25
Number of Facility Rentals 683 722 724 580 453
Public Works:
Street Resurfacing (miles) 1.25 0.14 0.61 5.98 0.53
Water:
Average Daily Consumption 5,250 5,704 5,872 4,846 4,530 (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
168
2021 2022 2023 2024 2025
Community Development
Permits 1,135 1,052 780 911 906
Inspections 7,904 5,007 3,245 2,980 2,386
Public Safety:
Arrests 1,285 1,080 901 838 660
Parking Citations Issued 15,294 18,976 21,856 19,252 19,771 Community Services and Recreation:
Number of Recreation Classes 18 27 28 20 20
Number of Facility Rentals 57 147 312 366 345
Public Works:
Street Resurfacing (miles) 3.72 2.24 5.43 1.50 1.10
Water:
Average Daily Consumption 4,794 4,742 4,500 4,084 4,430 (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
169
2016 2017 2018 2019 2020
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 3,087 3,099 3,099 3,099 3,099
Traffic Signals 55 56 56 56 56
Water:
Water Mains (miles) 127 127 127 127 127
Number of Service Connections 7,378 7,398 7,414 7,429 7,374 Average Daily Consumption (gallons) 5,249,976 5,703,739 5,871,834 4,845,868 4,929,535 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
170
2021 2022 2023 2024 2025
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 3,100 3,099 3,099 3,099 3,099
Traffic Signals 56 56 56 57 57
Water:
Water Mains (miles) 127 127 127 127 127
Number of Service Connections 7,381 7,506 7,129 7,129 7,659 Average Daily Consumption (gallons) 4,794,883 4,741,943 4,499,760 4,084,386 4,430,074 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)
171
This page intentionally left blank.
172
6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
December 30, 2025
To the Honorable Mayor and the Members of the City Council of the City of Paramount
Paramount, California
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”) for the year ended June 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 12, 2025. Professional standards also require that we communicate the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the basic financial statements. The City adopted GASBS No. 101 – Compensated Absences. No other new accounting policies were adopted and the application of existing policies was not changed during the year ended June 30, 2025. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
Management’s estimate of the investment fair market value is based on information provided by U.S. Bank, the custodian of the investments based on interactive data. We evaluated the methods, assumptions and data used to develop the investment fair market value in determining that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of the depreciation and amortization on capital assets is based on the industry standard and past experience on actual useful life of the asset groups. We evaluated the key factors and assumptions used to develop the depreciation and amortization on capital assets in determining that it is reasonable in relation to the financial statements taken as a whole.
To the Honorable Mayor and the Members of the City Council of the City of Paramount
Paramount, California