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Paramount staff propose commercial and industrial parcel tax to raise about $4 million for roads and safety
Summary
City Manager John Moreno and staff outlined a proposal to place a parcel tax on commercial and industrial properties that would generate an estimated $4 million annually, fund road repairs and public safety, be phased in over three years and — if approved by council — go before voters in November 2026.
City Manager John Moreno presented a proposed parcel tax on commercial and industrial parcels that city staff say could raise roughly $4 million a year to shore up Paramount’s general fund and pay for road repairs, public safety and environmental services.
Moreno said the proposal would levy rates based on square footage — 8¢ per square foot for commercial property, 11¢ for industrial property and 13¢ for vacant commercial/industrial parcels — and would not apply to residential property owners or renters. The city plans a three‑year phase‑in: 65% of the full rate in year one, 80% in year two and 100% in year three. Staff told attendees the measure would include a cap tied to the consumer price index of up to 3% and an independent oversight committee to review annual expenditures.
The nut of the proposal is fiscal: staff presented a FY26‑27 general fund shortfall (projected revenues $48.8 million versus $49.4 million in expenses) and a 10‑year forecast showing a cumulative deficit of about $27.7 million unless new revenue is found. To accelerate repairs, the city would use $2 million of the annual parcel tax revenue to support a bond that staff said would fund about $30 million in commercial and industrial road repairs over five years, prioritizing the worst‑affected corridors such as Garfield and Vermont avenues. Moreno said the tax would also direct $1.5 million a year to public safety (including $1 million for the sheriff contract and $500,000 for two private security officers focused on industrial/commercial areas), $250,000 for environmental and essential services (air monitoring, illegal dumping cleanup, graffiti abatement and organic‑waste compliance) and funds for business reinvestment programs.
During the presentation, staff cited local revenue mechanics: Paramount retains a minority share of sales and property taxes collected in the region (staff presented figures showing Paramount retained about 16.7% of sales tax receipts and roughly $3.3 million of an estimated $57 million in property tax receipts in the year presented). Staff also described the city’s contractual service model — including a long‑term contract with the Los Angeles County Sheriff’s Department — and said that contracting decisions are a driver of local costs. Moreno noted the sheriff contract has risen from $7.1 million in 2015 to about $11.7 million in 2026 and projected further growth.
City staff said the parcel tax could be placed on the November 2026 ballot if the council adopts an ordinance (staff described outreach May–July 2026 and aimed for ordinance adoption in late July or early August). Staff said first parcel tax installments would be collected through the LA County property tax bill, with the first payment due in December 2027 and the second in April 2028, and that the measure — as described in the presentation — would require a 0.667 majority to pass. Staff pointed attendees to a calculator at paramountcity.gov/budgetupdate that links to the LA County assessor portal so property owners can estimate their charges; staff gave example ranges, saying small commercial parcels might pay roughly $23 to $97 in year‑one dollar terms while larger properties could see significantly higher bills (staff presented an example top figure of about $103,000 annually for a large industrial property in full phase‑in scenarios).
In a brief Q&A, staff answered questions on alternatives (bond financing, land sales, business license fees and cannabis taxes), why residents were not included (staff said residents already pay sales tax and the parcel tax aims to make industrial users who do not pay sales tax bear more of the cost of damage to streets), and why the city does not charge rent to the sheriff’s substation (staff said charging rent could prompt the county to relocate deputies and reduce local response time). Vice Mayor Claire Stallings thanked staff for the outreach and presentation.
Next steps, as presented by staff: continued community engagement through July 2026, potential council ordinance adoption in late July/early August, possible placement on the November 2026 ballot and program rollout beginning January 2027 if voters approve the measure.
