Paramount projects $545,457 general fund gap as parcel-tax measure heads to November ballot
Paramount’s adopted financial outlook projects a $545,457 General Fund gap for fiscal year 2026-27, while the City’s 10-year forecast shows a cumulative $27.7 million deficit if corrective action is not taken.
At the same time, the City Clerk has listed the City of Paramount Public Safety, Environment, Streets and Business Improvement Measure for the November 3, 2026, Special Municipal Election. The proposed parcel tax would apply to covered commercial, industrial and vacant commercial-industrial parcels, not residential property.
The budget numbers
Paramount projects $49.4 million in General Fund expenditures for FY 2026-27 and $48.8 million in General Fund revenue. The difference produces a projected $545,457 budget gap.
The City describes the $27.7 million figure as a 10-year forecast intended to identify future financial challenges and guide policy decisions. It is not an audited current-year loss. The forecast assumes revenues continue to trail expenses if corrective action is not taken.
Why the City says costs are rising
Paramount’s budget materials identify rising public-safety costs, inflation and other operating expenses as pressures on the General Fund. The City also points to projected capital needs involving streets, parks and other facilities, as well as the cost of maintaining roads affected by commercial and industrial activity.
The General Fund supports services including public safety, street maintenance, environmental care and economic development. The City’s budget update says additional revenue could help address roads and infrastructure, public safety, environmental services and business reinvestment.
Those are the City’s stated budget assumptions and policy rationale. The projections should not be read as an independent audit of service demand, crime, infrastructure conditions or future project costs.
What the parcel-tax measure would do
The City Clerk’s election notice lists the measure for voter consideration on November 3. The ballot question describes a special parcel tax to fund Paramount public-safety and 911-response services, crime reduction, responses to business burglaries and street racing, water and air-quality monitoring and improvement, street and pothole repairs, and business support.
The proposed assessment would be based on parcel square footage and land-use category:
- 8 cents per square foot for commercial property;
- 11 cents per square foot for industrial property; and
- 13 cents per square foot for vacant commercial or industrial property.
The City estimates the measure could raise approximately $4 million annually. The proposed tax would include annual adjustments of up to 3%, according to the ballot language. City budget materials also describe a three-year phase-in, beginning at 65% of the full rate in the first year, rising to 80% in the second year and reaching the full rate in the third year.
The measure would require approval by two-thirds of votes cast. It has not taken effect and would not become a tax obligation unless voters approve it and the City completes the required implementation steps.
Who would pay
The proposed tax would be paid by owners of covered commercial, industrial and vacant commercial-industrial parcels. Residential property owners and renters would not be taxed under the proposal.
The City says the assessment would be calculated by multiplying a parcel’s square footage by the applicable rate for its land-use classification. The rates and approximately $4 million revenue estimate are tied to the measure described in the City’s election and budget materials.
What happens next
The City held the noticed public hearing on July 28, 2026, at City Hall. That hearing was required before the City could place the special-tax question before voters.
The measure is now listed on Paramount’s election-information page for the November 3 election. The City Clerk set August 14, 2026, at 5 p.m. as the deadline for submitting arguments for or against the measure for inclusion in the official election materials.
For Paramount residents, the immediate issue is not a new residential tax bill. It is whether voters will approve a commercial and industrial parcel tax intended to raise roughly $4 million annually while the City works through a projected near-term General Fund gap and a larger long-term imbalance.
Sources
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