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Paramount council advances and votes to adopt proposed FY 2026–27 budget amid water‑fund pressure
Summary
After a full workshop, Paramount staff presented a proposed FY 2026–27 budget that includes a 5% reduction target for departmental requests and projects a near‑term general‑fund gap and water‑fund shortfall. The council approved the budget resolution by roll call and directed follow‑up on water‑fund stabilization.
The City Council of Paramount voted to adopt the proposed FY 2026–27 operating budget after a day‑long staff workshop that reviewed revenues, departmental requests and a series of recommended adjustments.
Finance Director John Larovich led the presentation and stressed the timeline for the incoming fiscal year: “Este es el ciclo de desarrollo del presupuesto de la ciudad,” he said, explaining how department submittals, economic assumptions and grant dependencies shape the final proposal. Staff identified a projected structural funding gap in the general fund and noted the water fund is running a deficit that will require policy decisions to stabilize operations.
Larovich told the council staff is recommending limited discretionary spending and a targeted 5% reduction to department requests to help close gaps and maintain reserves. The presentation showed general‑fund revenue assumptions (sales and property taxes), an estimated general‑fund projection of roughly $48.88 million and near‑term adjustments that reduced an earlier shortfall to a level staff presented for adoption consideration.
The council also heard repeated warnings about the water fund: staff described multi‑year reliance on reserves and the need to evaluate rate adjustments, cost recovery and reserve targets once a more complete cost‑of‑service study is finished. Larovich noted recent operational changes (including bringing a new well online) that are expected to improve the fiscal outlook but said reserves remain strained.
During debate members pressed staff on specific line items and one‑time capital decisions. Following discussion, a motion was made to adopt the budget resolution for FY 2026–27. The roll call recorded affirmative votes from councilmembers present; the resolution carried and staff will return with supporting documents and any amendments necessary before final adoption on the noticed date.
The council directed staff to return with additional detail on water‑fund options and the precise impacts of the 5% departmental target. No additional formal amendments to the adopted package were recorded during the vote.
Next steps: staff will finalize supporting schedules and bring the formal adoption resolution and budget documents back to the council for final approval on the date noticed during the meeting.
