of0
^'^4- •>«,
0T
* ^
zCO 0<0 0
^ ^^ 0^
Agenda Report
August 25, 2025
j
(
I
I,
i
TO: Honorable Mayor and City Council
THROUGH: Finance Committee
FROM:Department of the City Manager
SUBJECT: AMENDMENTS TO THE CITY MANAGER'S FISCAL YEAR 2026
ADOPTED OPERATING BUDGET
RECOMMENDATION:
It is recommended that the City Council:
1) Find that the recommended action is exempt from the California Environmental Quality Act ("CEQA") pursuant to Public Resources Code 21065 and within the meaning of the State CEQA Guidelines Sections 15060(c) 15378(b); and 2) Amend the City Manger's Fiscal Year (FY) 2026 Adopted Operating Budget as detailed in the following report by increasing revenue and appropriations by $358,641 and adding 2.0 FTE limited-term positions, and converting two 1.0 FTE limited-term positions to regular-term.
BACKGROUND:
Throughout the fiscal year, budgetary adjustments are necessary to account for unanticipated changes to the adopted budget. These revenue and appropriation amendments are presented to the City Council for consideration. This agenda report includes proposed adjustments to the City Manager's FY 2026 Operating Budget as adopted by the City Council on June 16, 2025.
1. Increased Workforce Innovation and Opportunity Act (WIOA) Federal Award
The City Manager's Department recommends recognizing and appropriating $358,641 in additional WIOA Title I grant revenue (Fund 681). This increase is necessary because the actual federal award received by the Foothill Workforce Development Board (FWDB) exceeds the estimate included in the Career Services Division's adopted FY 2026 budget. Following budget adoption, FWDB received its official FY 2026 award I
^
MEETING OF08/25/2025AGENDA ITEM NO..
10 }
Amendments to the City Manager's FY 2026 Operating Budget August 25, 2025
notification from the U.S. Department of Labor, confirming the higher funding level.
These federal funds support vital programs connecting residents with employment opportunities and addressing local business workforce needs.
2. Addition of 2.0 Limited-Term Positions and Conversion of 2.0 Positions to Regular-Term
The City Manager's Department recommends the addition of 2.0 limited-term Full-Time Equivalent (FTE) positions - a Management Analyst IV (MA IV) and a Career Services Case Worker. The increase in the FY 2026 WIOA Title I federal award provides the necessary resources to fund these roles for the duration of the grant period.
The Career Services Case Worker (Limited-Term) is essential to manage the increased client volume and service delivery demands resulting from the expansion of federal grant resources. The Management Analyst IV (MA IV - Limited-Term) is critical for ensuring budget oversight, administrative support, and compliance with federal WIOA grant regulations during this period of enhanced funding.
There are two positions in the Career Services Division that staff recommends converting from a limited-term status to a regular-term status. One is a Management Analyst II and the other is a Career Services Case Worker. Both of these positions are long-term positions that are encumbered by employees with many years of service with the City of Pasadena. After an analysis of the funding sources, staff recommends these positions be converted to regular-term in order to provide internal equity and consistency with other division staff. Both unions representing the positions (Pasadena Management Association and Laborers' International Union of North America) have been consulted with and support the change.
ENVIRONMENTAL ANALYSIS:
The action proposed herein falls outside the definition of a "project" because it will not result in a direct or reasonably foreseeable indirect physical change in the environment under section 15060(c), and because it is a type of project covered in 15378(b).
COUNCIL POLICY CONSIDERATION:
The City Council's strategic planning goal of maintaining fiscal responsibility and stability and focus on Workforce Development by connecting residents with living-wage jobs and career pathways will be advanced by implementing necessary budget amendments.
Amendments to the City Manager's FY 2026 Operating Budget August 25, 2025
FISCAL IMPACT:
Approval of the recommended action will amend the City Manager's FY 2026 Operating Budget by recognizing revenue and appropriating $358,641 in the WIOA Fund (Fund 681). There is no impact to the General Fund. There is no fiscal impact resulting from the conversion of 2.0 FTE from limited-term to regular-term.
Respectfully submitted,
DAVID A. KLUG
Economic Development Director
Prepared by:
'^f- —
Michael Trogan
Acting Executive Director
Foothill Workforce Development
Approved by:
»^x
^MIGUI^L MAREQUEZ
{ City Manager