BUDGET AT A GLANCE FY 2023 - 2024
BALANCED BUDGET FOR OVER A DECADE
A Message to Our Residents Guided by our Vision, Mission, and Values, the City of Paramount is committed to serving as responsible stewards of public funds. As such, we are pleased to present to you the City budget for the 2023-2024 Fiscal Year (FY 2023-24). For over a decade, the budget has been structurally balanced. Retaining a strong financial position, our City leadership is able to deliver the highest quality programs and services for our residents. Due to our long tradition of saving first and spending second, Paramount has established a healthy cash reserve or “rainy day” fund. As the economy continues to recover from the COVID-19 pandemic, coupled with the Measure Y transaction and use tax revenue, which was overwhelmingly approved by Paramount voters in 2020, the City continues to invest in the community in numerous ways. This Budget at a Glance is a snapshot of these diverse investments being made that lay the groundwork for our future. The City thanks you, our community members, for entrusting us to help make Paramount Safe, Healthy, and Attractive.
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Our Guiding Philosophy The FY 2023-24 budget strengthens the City’s fiscal resiliency and investment in the community to promote the City’s Vision, Mission, and Values.
Vision
Mission
What is the desired outcome of our organization?
What is our purpose?
“A City that is Safe, Healthy, and Attractive.”
“Dedicated to providing fiscally responsible services that maintain a vibrant community.”
Values
Strategic Outcomes
What are our guiding principles? • Respectful and ethical behavior. • Service excellence. • Responsiveness, accountability and professionalism. • Innovation and creativity. • Teamwork and collaboration. • Effective, inclusive and transparent public information and engagement.
How do we actualize our vision? • Provide a safe community. • Advance community health. • Support economic health. • Promote environmental health. • Develop and maintain attractive and well-maintained infrastructure. • Deliver efficient, effective, and fiscally responsible service.
Our Vision, Mission, and Values help guide our Strategic Outcomes and set the standard for Paramount’s priorities, as illustrated in this FY 2023-24 Budget at a Glance. 2
An Introduction to the City Budget How and when is the budget adopted? The Paramount City Council adopts an annual budget on a fiscal year basis, which operates on a one-year cycle from July 1 to June 30. The Finance Department works with each of the City’s seven Departments to prepare a budget report under the direction of the City Manager.
Did You Know? You can view previously approved budgets on the City’s website. Scan here to learn more:
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Here’s what the annual budget process looks like: MARCH Each City department works with preliminary information impacting City operations for the following fiscal year. Each department submits budgetary requests for verification, including funding for important services, programs, and events. The Finance Department reviews expenditure requests and projects revenues—the City’s expected income—for the upcoming fiscal year, with consideration of the City’s current financial position.
APRIL City Staff presents data to the City Manager, who reviews and makes changes based on available funding, and the City Council’s policies and priorities before administering a budget recommendation report to the City Council.
MAY - JUNE Staff presents to the City Council a budget recommendation report for review. The City Council holds public meetings for budget review, voting to either accept the proposed budget or implement revisions.
JULY The newly adopted budget becomes effective July 1 for the new fiscal year.
JULY - DECEMBER Staff closes out the previous fiscal year that ended June 30, compiling year-end totals in preparation of the annual audit performed by an independent CPA firm.
JANUARY - FEBRUARY At the mid-year point of the budget cycle, staff reviews the fiscal standings against the original budget for the fiscal year. Staff presents the midyear budget review report to the City Council at a public meeting and proposes changes to the budget, if necessary.
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FY 2023-24 General Fund Revenues: $58,618,894 The General Fund is the primary operating fund of the City. General Fund revenues include taxes, license fees, permit fees, charges for services, investment earnings, and a variety of other sources. This figure includes the City’s reserve of $14,509,344. For FY2023-24 total General Fund sources is estimated at $58,618,894 and total uses is projected at $57,353,550, leaving an estimate surplus of $1,265,344 at the end of the fiscal year. Paramount receives various one-time and ongoing revenues to provide the resources to build fiscal strength, reinvest in the community, repair critical infrastructure, and provide a multitude of services. The City continues to focus on key strategies to enhance revenue growth and efficiencies, such as evaluating service levels and utilizing technology to meet increasing demands. Sales tax and Measure Y continue to be the primary revenue sources for the General Fund, accounting for nearly 70% of total General Fund revenues.
26%
6%
17
%
2 5% %
19% 11
%
3%
6
%
5
%
GENERAL FUND REVENUE SOURCES Sales Tax
Franchise Tax
Measure Y
Business Tax
Property Tax In Lieu of VLF
User Fees
Property Tax
Admin Reimbursement
Utility User Tax
Other Revenues
SALES TAX – Every Penny Counts!
For every dollar you spend in Paramount, our City receives 1 penny from the State, and 3/4 of a penny from Measure Y Transaction & Use tax. Here’s how it breaks down:
CA State - 7.25% Sales and Use Tax (CA State) - 1%
County - 2.25%
Paramount - 0.75%
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PARAMOUNT RECEIVES 13/4¢ FOR EVERY DOLLAR.
Revenue Highlights American Rescue Plan Act Paramount was among many public agencies to receive a federal grant allocation from the American Rescue Plan Act of 2021 (ARPA). • This one-time source of $18.9 million has put us in a position to improve infrastructure, rebuild from the effects of the COVID-19 pandemic, and repair our economy.
Investment Strategies The City’s primary investment objectives are to preserve the safety of principal, maintain an adequate level of liquidity, and maximize investment income while remaining consistent with the other more important objectives. • Revenue: estimated $1.4 million for FY 2023-24. • Compared to the prior average investment earnings of $136K per year, improved investment strategies provide for an increased revenue stream.
Measure Y • •
Revenue: estimated $7.5 million for FY 2023-24. The overwhelming approval by the voters of the Measure Y Transaction + Use Tax in March 2020 provided immediate relief during the pandemic, which will be a revenue source for years to come.
GENERAL FUND REVENUES 10 YEAR TREND Sales Tax
Property Tax In Lieu of VLF
Utility User Tax
Business Tax
Admin Reimbursement
Measure Y
Property Tax
Franchise Tax
User Fees
Other Revenues
$50M $45M $40M $35M $30M $25M $20M $15M $10M $5M 0 FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23 Est
FY 24 Est
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FY 2023-24 General Fund Expenditures: $57,353,550 The City’s primary operating fund and accounts for all unrestricted revenues. $70M
GENERAL FUND EXPENDITURES 10 YEAR TREND
$60M $50M
Salaries & Benefits Supplies & Services
$40M
Maintenance & Replacement
$30M
Capital Outlay
$20M
Capital Projects
$10M 0 FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23 FY 24 Est Adopted
City Manager / City Clerk 4.5% Administrative Council & Services Commissions % 3.9 0.9% Finance 7.0%
General Fund Budget Breakdown The City of Paramount continues to address the needs and expectations of our community, while simultaneously proposing beneficial capital improvement projects.
Capital Improvement Projects 27.0%
Planning 7.3%
Our budget retains traditional services—which are needed for a City to function and provide what residents and businesses need—as well as the successful City programs and events to all residents.
Public Safety 27.3%
Public Works 15.3%
Community Services 6.8%
Capital Improvement Projects - $15,479,850
Public Safety - $15,683,350
Administrative Services - $2,215,250
Public Works - $8,751,750
Planning - $4,210,650
City Manager / City Clerk - $2,605,450
Community Services - $3,910,950
Finance - $4,007,200
Council & Commission - $489,100
Expenditure Highlights by Department Public Safety (27.3%) To uphold the City’s historically tough stance on crime and maintain a safe environment, the City prioritizes public safety through sworn deputies and non-sworn City Staff, a dedicated Traffic Deputy, a School Resource Officer, license plate reader cameras, the Southeast Area Animal Control Authority (SEAACA), quality of life programming (Neighborhood Watch, Pitch In Paramount, Homeless Outreach, Code Compliance), a Community Emergency Response Team (CERT), and equipment for day-to-day operations.
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Expenditure Highlights by Department (continued) Community Services (6.8%) To make Paramount a fun and fulfilling community to live in, the City emphasizes community services through: parks and playgrounds, aquatics, sports, instructional classes, facilities, the Paramount Education Partnership, the Elderly Nutrition Program, senior programming, YMCA, community transportation, special events, and the STAR After School Program. Larger events include the Halloween Festival, Holiday Tree Lighting, Santa Train, Breakfast With Santa, the Heritage Festival, and more.
Planning (7.3%) To facilitate and administer Paramount’s residential, commercial, and industrial zones, the City encourages community development through long-range planning, zoning, and building codes, site and development plans, permits, and technical support.
Public Works (15.3%) To sustain and upgrade the City’s infrastructure, a comprehensive public works strategy is employed through facility and landscape maintenance, vehicle and equipment upkeep, road improvements, engineering, and sustainability. The City’s spending on public works also relates to the implementation of state-mandated organics recycling, and enhancing tree care programs, which are designed to align with the City’s sustainability goals in the Climate Action Plan (CAP).
All Expenditures (including General Fund) For FY 2023-24, the overall adopted budget for all operating expenditures across all funds and Capital Improvement Projects (CIP) totals $107,196,450.
Special Revenue Funds (Restricted Grants) $30,272,750: Account for revenues from sources that are restricted to functions or activities of the government.
%
28%
$12,063,300: This includes the Water Fund, $10,442,650, and Equipment Replacement fund, $1,620,650. $5,736,100: This includes the Successor Agency where the main purpose is to wind down the activities of the former Paramount Redevelopment Agency.
Debt Service $1,770,750: This includes payment of long-term debt principal and interest of the new Pension Obligation Bond issued in 2021. The City was able to lock in low-interest rates to pay down pension debt. This financing is estimated to save the City approximately $4.7 million in interest over the next eight years.
5%
54%
Proprietary Funds
Fiduciary Fund
11
2%
ALL CITY-WIDE EXPENDITURES PER FUND General Fund (Unrestricted)- $57,353,550 Seen on page 7
Special Revenue (Restricted Grants)- $30,272,750 Propietary Fund - $12,063,300 Fiduciary Fund - $5,736,100 Debt Service - $1,770,750 Total: $107,196,450
ARPA Funding $7,724,900: Includes $2.5 million for community enrichment/investment to pay advanced rent for the upcoming City Museum at the Paramount Saw Building, $1.7 million for affordable housing, $1.5 million to be decided by the Paramount community, $1 million for business recovery, retention, and attraction, with the remaining for water infrastructure, homeless support services, emergency preparedness, and administrative support.
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Notable Capital Improvement Projects (All Funds): $37,287,150 Construction projects are an investment that provide permanent improvements or additions to land, buildings, and infrastructure, intended to increase their value or usability for a community. MAP LEGEND 105
New City Well •
Water Well 16
Street Resurfacing (2024) •
Arterial Street Resurfacing
•
Neighborhood Street Resurfacing
19 710
Community Orchard •
Dills Park Community Orchard
Park Enhancements •
All-American Park
•
Paramount Park
•
Progress Park
•
Dills Park
•
Village Park
LED Lighting Conversions
As one of the largest expenditure allocations in the FY 23-24 budget (27%), infrastructure investment serves to benefit our entire community for years to come.
Arterial Street Resurfacing
Paramount Park
Annual street rehabilitation and improvements will next target Orange Avenue, from Alondra Boulevard to Somerset Boulevard.
Installing a new playground, creating sidewalk improvements, upgrading the pool, the parking lot, and ballpark lighting systems, renovating the park entryway with mosaic art, upgrading the HVAC system, adding concrete picnic tables and trash cans, replacing the monument sign, and purchasing generators for emergency shelter locations.
Neighborhood Street Resurfacing Annual street rehabilitation and improvements, which will next target Jefferson Street, Verdura Avenue, Chester Street, Adams Street, and Exeter Street.
Dills Park Community Orchard Installing fencing, walking path, garden planters, and fruit trees in the north grass area for residents to grow fruits and vegetables.
All-American Park Replacing the playground, installing a basketball court, upgrading lighting, and replacing the picnic shelter.
Dills Park Replacing the playground, and installing an additional restroom and parking lot.
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Progress Park Replacing the playground equipment, installing additional structures and amenities for the patio area, renovating the restrooms, upgrading ballfield lighting, replacing exterior lamps with LED lighting, installing concrete picnic tables and trash cans, adding benches, replacing fencing, installing a security system, and putting in additional BBQ grills.
Village Park Various landscaping improvements.
Visualizing the City Budget Since the revenue losses that occurred due to the Great Recession of 2008 and the State’s dissolution of Redevelopment Agencies in 2012, the City continues to maintain lean staffing levels. Our workforce increased from 90 to 92 full-time positions in FY 2023-24 to provide needed support for increased workloads in the City Clerk Division, Planning Department, and Finance Department. Additionally, the City continues to rely on parttime positions to meet the needs of each department.
STAFFING LEVELS BY DEPARTMENT Public Works
Public Safety*
Finance
City Manager / City Clerk
Community Service
Planning
Administrative Services
*Does not include include Sheriff Deputies
120 100 80 60 40 20 0 FY 08
FY 09
FY 10
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
FY 24
FY 2023-24 Estimated General Fund Balance TOTAL REVENUE SOURCES
$58,618,894
PROJECTED EXPENDITURES & CIPS
$57,353,550
=
ESTIMATED SURPLUS BALANCE
$1,265,344
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Budget at a Glance Thank you for taking the time to learn more about the City of Paramount’s budget.
Interested in reading the FY 2023-24 budget in full? ParamountCity.com/Government/ Departments/Finance
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