Pasadena
Opening of Public Hearing for the Presentation
and Adoption of the Fiscal Year 2025-26
Operating Budget
Matthew Hawkesworth
Finance Director
City Council Meeting - Item 11
May 5, 2025
2 General Fund 5-Year – Proposed FY 26
December 2024 Proposed FY 25-26
Tax Revenues $274,585,826 $273,875,007
Other Revenues 56,308,747 58,280,513
Contributions/Other Funds 20,140,438 30,640,438
Total Revenues 351,035,011 362,795,958
Personnel 228,380,604 231,753,822
Debt Service 12,323,966 12,323,128
Contrib. to Other Funds 14,637,895 14,427,375
Other Expenses 100,845,349 102,952,928
Total Expenses 356,187,814 361,457,253
Operating Income/(Loss) (5,152,802) 1,338,705
Proposed FY 26 Changes
Key Revenue Changes:
Full 12% GFT per Charter requirement - $10.5m
Additional EMS Revenue - $750k (pending Council
approval of revised fees)
Decreased Sales Tax – ($850k)
Key Expenditure Changes:
Salary & Pension increase - $2.35m
OT/Comp Time Payoff - $1.0m
Fleet Funding Increase from Audit - $1.785m
3 General Fund Proposed Changes
Fire:
$100k – Increased uniform costs
$200k – Increased Turnout/PPE costs
$303k – PORT Firefighter Funding – Expiring grants
$167k – Partial year of 1 new Battalion Chief FTE
Public Health:
$255k - Health Officer – 0.75 FTE
4 General Fund Proposed Changes
Public Works:
$116k – Partial funding of 3 FTEs also funded by CIP or Refuse funds. Includes a Code Compliance Officer,
Management Analyst 1 reclassification from part-time
Admin. Specialist, and Engineer for Measure R projects in CIP.
$52k – Increased Forestry and Graffiti supplies/PPE costs City Attorney - CPOC:
$25k – Increase to new IPA contract
5 6
General Fund 5-Year – Proposed FY 26
Proposed FY 25-26
Tax Revenues $273,875,007
Other Revenues 58,280,513
Contributions/Other Funds 30,640,438
Total Revenues 362,795,958
Personnel 231,753,822
Debt Service 12,323,128
Contrib. to Other Funds 14,427,375
Other Expenses 102,952,928
Total Expenses 361,457,253
Proposed Changes 1,218,000
Operating Income/(Loss) 120,705
OPPORTUNITY FOR ONE-TIME REVENUE
AND USES
FY 2026 Recommended Operating Budget
7 Opportunity for One-Time Revenue
⬗ City held the Light & Power Fund GFT at $18m for FY
2025.
⬗ FY 2024 ended positively for the Light & Power Fund.
⬗ Presents an opportunity/requirement to take the full 12% GFT in FY 2024-25 per the Charter.
⬗ $10.6 million in additional funds in FY 2025 that could support one-time expenditures.
8 Proposed One-Time Expenditures
Fire:
$200k - Purchase/outfit vehicle for new Battalion Chief PRCS:
$200k - Replace outdated equipment outside of the
equipment replacement schedule
Housing:
$228k - Offset CDBG funding shortfall for MASH program until program can be re-evaluated
$75k - Fund Housing Rights Center, no longer eligible for CDBG
9 Proposed One-Time Expenditures
Public Health:
$160k – Fund Program Coordinator II – PORT & Violence Intervention, previously grant funded
$300k – Increased funding of overhead not covered by
grants
$150k – Health Records System replacement grant match Police:
$72k – Equipment to establish fleet repair at station 10 Proposed One-Time Expenditures
Public Works:
$135k – Additional funding for tree planting/watering $280k – Hot Asphalt Truck for Pothole Repairs
Planning:
$200k – Eaton Fire contract services for rebuild assistance Economic Development:
$200k – 450 N. Lake process and Strategic Plan
implementation
11 Proposed One-Time Expenditures
Capital:
$4.3m – Street Resurfacing
$2.6m – PD Ruggedized Laptop Replacements for
Vehicle MDTs
$1.5m – PD Dispatch Console Replacement
Proposed One-Time Expenditures totals $10,600,200
12 WHAT ARE WE NOT FUNDING?
FY 2026 Recommended Operating Budget
13 What are we not funding?
Fire - 3 Battalion Chiefs – one per shift and two new vehicles. Total annual cost of $1.3m and $420k one-time.
Fire – Preventative physical therapy and training consultant - $100k Police – 2 Forensic Specialists FTEs – due to increased work volume and shift needs. Annual cost of $240k
Police – Increase contract services for mental health and counseling services - $300k
Police – Add Critical Performance Unit support for Continuing Progression Training for Police Officers - $300k
14 What are we not funding?
Police – Unmanned drone lease - $250k
Police – Active Intelligence Center
Capital costs - $2.5m (Discretionary spending request submitted) Software Licensing (annual) - $190k
Staffing for 4 FTEs after buildout - $500k estimate
Human Resources – HR Analyst to assist with labor relations and classification work - $150k
Human Resources – Furniture replacement - $125k
15 What are we not funding?
Public Health – Program Coord. II to develop and lead public health climate impact, sustainability, and resiliency programming - $160k Public Health – Customer Svc. Rep. III for case management for the violence interruption program - $98k
Public Health – Deputy Director to add this position back, no grant funding to support - $277k
Public Health – Additional part-time Health Inspectors for weekend or afterhours enforcement - $100k
Public Works – Office Assistant for Street Maintenance Division - $81k 16 What are we not funding?
Economic Development – Management Analyst I – Reclassify existing part-time position - $46k
Economic Development – Additional Strategic Plan implementation beyond what is recommended - $244k
Public Information – Admin. Intern (paid) - $38k
Finance – Collections System upgrades - $10k
City Attorney – Additional Outside Legal. Plan to fund through General Liability Fund/Program - $1.5m
City Attorney – Homeless Court - $750k - $1m annually 17 WHAT OTHER FUNDS ARE GENERAL
FUND RELATED?
FY 2026 Recommended Operating Budget
18 What Other Funds are General Fund Related?
Library Fund – The Library Special Tax requires a minimum level of General Fund annual support but can be offset by available funds in the Library Fund. FY 26 balance estimated at $12m.
Fleet Replacement Fund – Funded by annual charges to each department that contributes to the fund. Most of the fund balance in this fund is derived from General Fund contributions from Fire, Police, Parks, Recreation, and Public Works.
Fund balance insufficient to replace current fleet with Zero Emission. GF increased funding of $925k in FY 2026 Recommended Operating Budget. DoIT Equipment Replacement – Funded by annual charges to every department that contributes to the fund. CIP Reserve of $2.7m is equal to the current need and has allowed timely network and personal use device replacement.19
What Other Funds are General Fund Related?
Building Services Fund – Funded by annual service charges to departments. This year’s proposed budget includes some spending of this on projects such as the roof replacements on City buildings.
Projected FY 2026 balance is $5.0m
Workers Compensation Fund – Funded by charges based on payroll charges to each fund. This fund has a positive cash fund balance of approximately $14 million, which is inline with policy decisions and supports the outstanding Liability Claims Payable based on actuarial studies of $44 million.
Section 115 Trusts for Pension and OPEB. The principal funds deposited were from the General Fund. This funds could be draw in any year to offset current pension or OPEB obligations. 20 General Fund Reserves
General Fund Reserve is comprised of two parts:
Operating Reserve – 5% of Annual Expenditures
$16.184m
Emergency Reserve – 15% of Annual Expenditures
$48.552m
The City also has the Section 115 Trust for Pension and OPEB Benefits
$13.75m and $2.605m respectively as of 3/31/25.
21 Priority Category Examples
ADU construction incentives
Climate Change/Sustainability initiatives
Code Enforcement (Illegal vending/gas
blowers)
Economic development Strategic Plan
implementation
Emergency Preparedness/Enhanced Fire
Prevention
Homeless Prevention
Homeless transition/temp housing
Implement neighborhood specific plans
Maintain Public Health programs when
grants are terminated
22 Mental health, crisis counseling, and
related support for City personnel
Modernize PD 911/record keeping/crime
analysis (Active Intelligence Center)
Offset any Federal Reductions with local
funds
Pedestrian and/or Bicycle safety
Roadways/PCI improvements
Senior programming (PRCS)
Traffic Enforcement (PD)
Urban forest - maintain or improve
Youth programming (PRCS)
(Alphabetical)
City Council Priority Discussion
The budget reflects past City Council decisions. It’s time to review and ensure these align with today’s needs.
Which existing priorities need re-evaluation given current economic and community conditions?
How can we establish a clear, transparent process for ongoing priority setting and adjustment?
What criteria should guide decisions on program adjustments or reductions, if necessary? Such as:
Data-driven decisions made by policy or City Council action Explore potential for partnerships and contracting out services Evaluate the effectiveness and sustainability of current program subsidies and delivery models
Suggested framework for evaluating priorities: (a) Impact on the community, (b) Alignment with City Council goals, and (c) Financial sustainability. 23 24