AGENDA
FINANCE COMMITTEE
SPECIAL MEETING NOTICE
DECEMBER 8, 2025
PUBLIC MEETING 3:00 P.M.
Members
Victor M. Gordo, Mayor
Tyron Hampton, District 1
Rick Cole, District 2
Gene Masuda, District 4
STAFF
Karin Schnaider, Director of Finance
Arnold Lee, Chief Assistant City Attorney
Gloria Acevedo, Recording Secretary
MISSION STATEMENT
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with our history, culture, and unique character.
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DEPARTMENT OF FINANCE
CITY OF PASADENA
NOTICE OF SPECIAL MEETING
OF THE FINANCE COMMITTEE
DECEMBER 8, 2025
PUBLIC MEETING: 3:00 P.M.
PASADENA CITY HALL, COUNCIL CHAMBER
100 NORTH GARFIELD AVENUE, ROOM S249
NOTICE IS HEREBY GIVEN that the special meeting of the Finance Committee will be held on Monday, December 8, 2025, at 3:00 p.m. in the Pasadena City Hall Council Chambers S249.
HEREBY CERTIFY that this notice, in its entirety, was posted on the Internet at www.cityofpasadena.net/commissions/city-council-finance-committee and on the Council Chamber Bulletin Board, Room S249 and the Bulletin Board in the rotunda area, City Hall, 100 North Garfield Avenue, this 4th day of December 2025, by 5:30 p.m., and that copies hereof were faxed, emailed or delivered to each member of the City Council and to each local newspaper of general circulation, radio or television station requesting notice in writing, all of which recipients are identified on the distribution list set forth herein below.
DISTRIBUTION:
City Council
City Manager
City Attorney
Public Information Officer
Los Angeles Times
Pasadena Independent
ColoradoBoulevard.net
La Opinion
Pasadena Now
Pasadena Star News
Pasadena Weekly
Conversation Live
Gloria Acevedo, Recordingecretary
Finance Committee
In compliance with the Americans with Disabilities Act of 1990, listening assistive devices are available from the City Clerk's Office with a 24-hour advance notice.
Please call (626) 7 44-4124 to request use of a listening device.
Language translation services may be requested with 24-hour advance notice.
Habra servicio de interpretaci6n disponible para estas juntas 1/amando al (626) 744-4124 par lo menos con 24 horas de anticipaci6n.
SPECIAL MEETING
AGENDA
FINANCE COMMITTEE
DECEMBER 8, 2025
Public Meeting: 3:00 P.M.
Council Chamber, Pasadena City Hall
100 North Garfield Avenue, Room S249
The Fin
ance Committee may take action within its authority on
any item listed on this agenda as it deems appropriate following consideration and discussion of the matter.
PUBLIC MEETING - 3:00 P.M.
ROLL CALL
PUBLIC COMMENT – LIMITED TO ITEMS ON THIS SPECIAL MEETING
AGENDA AND WILL BE HEARD AT THE TIME THE ITEM IS
CONSIDERED
NEW BUSINESS
1. AMEND T
HE HOUSING DEPARTMENT'S FISCAL YEAR 2026
OPERATING BUDGET BY APPROPRIATING $240,860 IN THE
GENERAL FUND FOR THE RENOVATION OF THE BAD WEATHER
SHELTER; AUTHORIZE THE CITY MANAGER TO AMEND CONTRACT
NO. 24069 WITH THE COUNTY OF LOS ANGELES AND AMEND
CONTRACT NO. 32848 WITH TRINITY EVANGELICAL LUTHERAN
CHURCH TO UPDATE THE RESPECTIVE SCOPES OF WORK AND
BUDGETS
2. AUTHORI
ZE THE CIPF MANAGER TO EXECUTE ALL AGREEMENTS
WITH THE LOS ANGELES COUNTY METROPOLITAN
TRANSPORTATION AUTHORITY (METRO) TO ACCEPT $7,412,039
OF MEASURE M MULTI-YEAR SUBREGIONAL PROGRAM (MSP)
FUNDS FOR FISCAL YEAR 27- 28
3. APPRO
VE OPTIONS FOR UTILIZING THE SECTION 115 PENSION
TRUST AND INITIATING A FRESH START WITH CALPERS
4. AMENDM
ENT TO THE FISCAL YEAR 2026 GENERAL FEE SCHEDULE
ADJOURN
NEW BUSINESS
ITEM 1
1. AMEND THE HOUSING DEPARTMENT’S FISCAL YEAR 2026 OPERATING BUDGET BY APPROPRIATING $240,860 IN THE GENERAL FUND FOR THE RENOVATION OF THE BAD WEATHER SHELTER; AUTHORIZE THE CITY MANAGER TO AMEND CONTRACT NO. 24069 WITH THE COUNTY OF
LOS ANGELES AND AMEND CONTRACT NO. 32848 WITH TRINITY
EVANGELICAL LUTHERAN CHURCH TO UPDATE THE RESPECTIVE
SCOPES OF WORK AND BUDGETS
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December 8, 2025
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TO: Honorable Mayor and City Council
THROUGH: Finance Committee
FROM: Housing Department
SUBJECT: AMEND THE HOUSING DEPARTMENT'S FISCAL YEAR 2026 OPERATING BUDGET BY APPROPRIATING $240,860 IN THE
GENERAL FUND FOR THE RENOVATION OF THE BAD WEATHER
SHELTER; AUTHORIZE THE CITY MANAGER TO AMEND CONTRACT
NO. 24069 WITH THE COUNTY OF LOS ANGELES AND AMEND
CONTRACT NO. 32848 WITH TRINITY EVANGELICAL LUTHERAN
CHURCH TO UPDATE THE RESPECTIVE SCOPES OF WORK AND
BUDGETS
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1) Find that the recommended actions are exempt from the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines per Section 15061 (b)(3), the "common sense" exemption that CEQA only applies to projects that may have an effect on the environment;
2) Amend the Housing Department's Fiscal Year (FY) 2026 Operating Budget by appropriating $240,860 from the unappropriated fund balance of the General Fund (101) for capital improvements at Trinity Evangelical Lutheran Church to support the Bad Weather Shelter;
3) Authorize the City Manager to amend Contract No. 24069 with the County of Los Angeles to update the scope of work and revise the budget with no change to the total contract amount of $275,000 to fund capital improvements at Trinity Evangelical Lutheran Church necessary for the operation of the Bad Weather Shelter; and
4) Authorize the City Manager to amend Contract No. 32848 with Trinity Evangelical Lutheran Church to update the scope of work and add funding in the amount of ;
!
MEETING OF.AGENDA ITEM NO..
Bad Weather Shelter Contract Amendments
December 8, 2025
$157,000 for a total not-to-exceed contract total of $432,000 for capital improvements necessary for the operation of the Bad Weather Shelter.
BACKGROUND:
On December 4, 2023, Council approved an amendment to the Housing Department's Fiscal Year (FY) 2024 Operating Budget to appropriate $275,000 in General Funds for capital improvements at Trinity Evangelical Lutheran Church ("the Church") to enable the property to be used as the site of the Bad Weather Shelter. In order to expedite the opening of the shelter, the Department's Municipal Assistance, Solutions and Hiring (MASH) program utilized $34,140 of the funding to complete certain improvements that were necessary for the shelter to open in January 2024, deferring the more extensive capital improvements until after the winter shelter season.
On December 4, 2023, Council also authorized entering into Contract No. 32848 with the Church in the amount of $275,000 for capital improvements related to the Bad Weather Shelter. The agreement includes a forgivable loan with a ten-year term, with 10% of the loan forgiven per year if the site continues to be used for the Bad Weather Shelter.
During the 2024 shelter season, Los Angeles County Supervisorial District Five agreed to provide $275,000 for the capital improvements, which included the installation of fire sprinklers and a fire alarm system, a bathroom renovation to meet ADA standards, and improvements to the existing kitchen. Council authorized Contract No. 24069 with the County of Los Angeles ("County") with a not-to-exceed total of $275,000 on May 20, 2024. In addition to the capital improvements, increasing the shelter's capacity from 54 beds, the maximum capacity allowable before the fire alarm and sprinklers were installed, to 70 beds is one of the contract's deliverables.
In the fall of 2024, fire sprinklers and a fire alarm system were installed in the Church's Fellowship Hall, where the shelter is located. The total cost for this work was $199,444, which exceeded initial cost estimates by $125,000 due to the required installation of an underground backflow prevention device for the fire sprinklers, as well as unanticipated mold, lead, and asbestos abatement related to both systems. These capital improvements were funded by Contract No. 24069 with the County. Due to time constraints, the renovation of the restrooms and kitchen were deferred until after the winter shelter season, which concluded in April 2025.
In summer 2025, the estimated budget for the restroom renovations was updated to reflect significant changes that were required to fully meet ADA standards. The initial budget was based on a construction estimate that was obtained by the church but was later determined to be incomplete and not in full compliance with ADA standards. Due to the increased project costs, the kitchen renovation was deferred until after the upcoming 2025-2026 winter shelter season and will likely require additional funding. The restroom renovations, which include a complete remodel of the men's and women's restrooms in the Fellowship htall, the installation of an accessible shower, restriping of the church I
\
Bad Weather Shelter Contract Amendments
December 8, 2025
parking lot to meet ADA standards, and the relocation of laundry hook-ups, is expected to be completed by mid-December 2025, which will allow the shelter to open earlier than in the prior two seasons.
Staff recommend amending the Housing Department's FY 2026 Operating Budget to reappropriate $240,860 of General Fund previously approved by Council to support the capital improvements at the church.
Staff recommend authorizing an amendment to Contract No. 24069 with the County to update the scope of work and revise the budget with no change to the total contract amount of $275,000. Staff further recommend an amendment to Contract No. 32848 with the Church to update the scope of work and increase the contract budget by $157,000. The amendments to each agreement will ensure that the scopes of work and budgets are aligned with the updated project requirements and associated costs.
ENVIRONMENTAL ANALYSIS:
The actions proposed herein are exempt from the California Environmental Quality Act (CEQA), pursuant to State CEQA Guidelines Section 15061 (b)(3), the "common sense" exemption of CEQA which applies to projects which may have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Amending the Department's budget and the approval of amendments to existing agreements will not have a significant effect on the environment and, hence, are not subject to CEQA.
COUNCIL POLICY CONSIDERATION:
Approval of the recommended actions will provide access to emergency shelter services to people experiencing unsheltered homelessness in Pasadena during the months of the year with the highest incidences of inclement weather. These actions are consistent with the City Council's goal to support and promote the quality of life and local economy. The proposed actions are in accordance with the Pasadena Continuum of Care system, General Plan Housing Element, Five-Year Consolidated Plan, and Five-Year Public Housing Authority Plan.
Bad Weather Shelter Contract Amendments
December 8, 2025
FISCAL IMPACT:
Approval of the recommended actions will increase the hlousing Department's FY 2026 Operating budget by appropriating $240,860 in the General Fund (101) to support capital improvements necessary for the operation of the Bad Weather Shelter.
Respectfully submitted,
JAMES WONG
Housing Director
Prepared by:
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Jennifer O'Reilly-Jones
Program Coordinator III
Approved by:
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V City Manager
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NEW BUSINESS
ITEM 2
2. AUTHORIZE THE CITY MANAGER TO EXECUTE ALL AGREEMENTS
WITH THE LOS ANGELES COUNTY METROPOLITAN
TRANSPORTATION AUTHORITY (METRO) TO ACCEPT $7,412,039
OF MEASURE M MULTI-YEAR SUBREGIONAL PROGRAM (MSP)
FUNDS FOR FISCAL YEAR 27-28
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Agenda Report
December 8, 2025
TO:Honorable Mayor and City Council
THROUGH: Finance Committee
FROM:Department of Transportation
SUBJECT: AUTHORIZE THE CIPf MANAGER TO EXECUTE ALL AGREEMENTS
WITH THE LOS ANGELES COUNTY METROPOLITAN
TRANSPORTATION AUTHORITY (METRO) TO ACCEPT $7,412,039
OF MEASURE M MULTI-YEAR SUBREGIONAL PROGRAM (MSP)
FUNDS FOR FISCAL YEAR 27-28
RECOMMENDATION:
It is recommended that the City Council:
1. Find that the action proposed herein not a project subject to the California Environmental Quality Act (CEQA) pursuant to Section 21065 ofCEQA and Sections 15060(c)(2), 15060(c)(3), and 15378 of the State CEQA Guidelines and, as such, no environmental document pursuant to CEQA is required;
2. Authorize the City Manager to execute all agreements with the Los Angeles County Metropolitan Transportation Authority (Metro) to accept Measure M Multi-year Subregional Program (MSP) funds for transportation projects; and
3. Amend the Fiscal Year (FY) 2026-2030 Capital Improvement Program (CIP) Budget to recognize and appropriate $7,412,039 in Measure M MSP funds as detailed in this report.
BACKGROUND:
In 2016, the Metro Board of Directors approved the Los Angeles County Traffic Improvement Plan Ordinance, known as Measure M. That same year, Los Angeles County voters approved Measure M, which partially funds many Metro projects, and provides funding to local jurisdictions via the Multi-Year Subregionat Program (MSP), the Metro Active Transport (MAT), and Local Return. Measure M Guidelines direct each MEETING OFAGENDA ITEM NO.
Grant Acceptance - Metro Measure M MSP FY27-28 and Future Project Authorization December 8, 2025
subregion/Council of Governments (COG) to draft five-year expenditure plans for their respective Measure M MSP funds. MSP funds provide subregions with flexibility in using the funds within the framework of Measure M Guidelines. Before MSP funds are allocated to local jurisdictions, the MSP projects and allocation must be approved by the Metro Board of Directors. The City of Pasadena's initial five-year MSP and subsequent MSP project lists are coordinated as a member agency of the Arroyo Verdugo Communities Joint Powers Authority (AVCJPA).
The City Council approved a list of seven projects for inclusion in the FY27-28 MSP on June 17, 2024. Below are the seven projects with the appropriation amounts to amend the FY 2026-2030 CIP Budget:
ProjectMSP Funding
Subregional Equity Program
Bus Stop Improvement Program (75900)597,016
Citywide Neighborhood Traffic Management Program for Mountain Street from Los Robles Avenue and Fair Oaks Avenue(75923)500,000
Transit Project
Bus Replacement and Expansion Buses of Pasadena Transit (75085)2,778,557 Modal Connectivity and Complete Streets Projects
Installation of Traffic Signal and Curb Extensions at Sierra Bonita Avenue and Orange Grove Boulevard (75134)132,077
Citywide Continental Crosswalk Implementation (75917)1,204,389 Installation of Pedestrian Hybrid Beacons (HAWKs) at Various Locations1,200,000 Citywide Leading Pedestrian Intervat/Accessible Pedestrian Signal (LPI/APS) Implementation Program1,000,000
Total7,412,039
The Installation of Pedestrian Hybrid Beacons (HAWKs) at Various Locations has subsequently been clarified to include two existing uncontrolled crosswalks across Lincoln Avenue at Toolen Place and across Lake Avenue at Elizabeth Street. As these locations were not specifically identified in the June 2024 City Council approval of the Measure M MSP project list, Council action is requested to approve the project with identified locations for MSP funds.
COUNCIL POLICY CONSIDERATION:
The proposed action is consistent with Mobility Element objectives to enhance livability, encourage walking, hiking, transit use and other alternatives to motor vehicle use, and to create a supportive climate for economic viability. This program is also consistent with the City's goals to improve, maintain, and enhance public facilities and infrastructure and to improve mobility and accessibility in the City. Specifically, these projects support the following City General Plan Mobility Element Policies:
Grant Acceptance - Metro Measure M MSP FY27-28 and Future Project Authorization December 8, 2025
1.1 Encourage connectivity and accessibility to a mix of land uses that meet residents' daily needs within walking distance.
1.7 Design streets to achieve safe interaction for all modes of travel particularly for pedestrians and bicycle users.
1.13 Implement traffic measures developed through the Neighborhood Traffic Management Program (NTMP) to control the speed and volume of traffic to reduce traffic impacts in neighborhoods.
1.17 Design streets to improve access to destinations by transit, bicycle and walking.
2.3 Provide convenient, safe and accessible transit stops.
ENVIRONMENTAL ANALYSIS:
The action proposed herein is not subject to the California Environmental Quality Act (CEQA) in accordance with Section 21065 of CEQA and State CEQA Guidelines Sections 15060 (c)(2), 15060 (c)(3), and 15378. The authorization of the City Manager or their designee to enter into an agreement with Metro to receive Measure M MSP funding is a government fiscal activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
Therefore, the proposed action is not a "project" subject to CEQA, as defined in Section 21065 ofCEQA and Section 15378 of the State CEQA Guidelines. Since the action is not a project subject to CEQA, no environmental document is required. Upon entering into Measure M MSP funding agreements the City will move forward with designing the proposed improvements and will conduct the corresponding CEQA review prior to approval of each project for construction.
Grant Acceptance - Metro Measure M MSP FY27-28 and Future Project Authorization December 8, 2025
FISCAL IMPACT:
This action will amend the FY 2026-2030 Capital Improvement Program Budget by appropriating $7,412,039 of Measure M MSP funding. There is no local matching requirement for this grant.
Respectfully submitted,
JOAQUIN T. SIQUES
Director, Department of Transportation
Prepared by:
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Engineer
Approved by:
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(3 'City Manager
NEW BUSINESS
ITEM 3
3. APPROVE OPTIONS FOR UTILIZING THE SECTION 115 PENSION TRUST AND
INITIATING A FRESH START WITH CALPERS
December
15, 2025
TO: Honorabl
e Mayor and City Council
THROUGH: F
inance Committee (December 8, 2025)
FROM: D
epartment of Finance
SUBJECT: APPROVE OPTIONS FOR UTILIZING THE SECTION 115 PENSION
TRUST AND INITIATING A FRESH START WITH CALPERS
RECOMMENDATION:
It is reco
mmended that the City Council:
A. Find th
at the proposed action is not a project subject to the California Environmental Quality Act (CEQA) as defined in Section 21065 of CEQA and Section 15378 of the State CEQA Guidelines and, as such, no environmental document pursuant to CEQA is required for the project; and B. Direc
t the City Manager or designee to execute the necessary documents with CalPERS and the City’s Section 115 Trust to make an additional discretionary payment (ADP) of $7 million to CalPERS in order to pay down the Unfunded Accrued Liability (UAL) of the City’s Safety plan and initiate a Fresh Start for the Safety Plan as outlined in the report.
EXECUTIVE SUMMARY:
The Cit
y established a Section 115 Trust (Trust) in 2017 with $10.5 million from the General Fund to assist with funding future pension obligations. The Trust has grown to approximately $14.9 million as of October 31, 2025, from investment earnings. There was an initial plan proposed in Fiscal Year (FY) 2020 to utilize these funds; however, that plan was placed on hold due to the economic uncertainty of the COVID pandemic.
The current Five-Year Forecast for the General Fund projects ongoing shortfalls, with annual pension obligations to CalPERS being a key contributor to rising expenditures.
The proposed action is to utilize the Trust to make an ADP towards the City’s UAL and initiate a Fresh Start to shorten the repayment duration, reduce total interest payments, and smooth out annual payment volatility.
Approve Options for Utilizing the Section 115 Pension Trust, Initiating Fresh Starts with CalPERS, and Reviewing the General Fund Forecast
December 8, 2025
BACKGROUND:
The Cit
y contracts with CalPERS to provide retirement benefits for eligible employees.
Each year, the CalPERS actuarial staff perform a valuation of the City’s two pension plans (Safety and Miscellaneous (non-safety)) to review the funding status of the plans and establish future contribution requirements. The valuation generally focuses on two primary cost components: the unfunded accrued liability for benefits earned but not yet paid, and the normal cost of benefits being earned in the next year.
In June
2017, the City Council approved the establishment of a Trust to set aside funds to help offset future pension obligations. At that time, the City Council authorized a deposit of $10.0 million from the General Fund and later in 2017 authorized another contribution of about $500,000. As of December 31, 2019, the Trust balance had increased to $11.65 million through investment returns. The funds in the Trust can only be used to offset pension obligations and may be drawn down through City Council action, at any time.
On Februar
y 10, 2020, the City Council’s Finance Committee reviewed multiple options for utilization of the Trust towards current and future pension costs that were the most feasible and focus on the UAL of the City’s pension obligations. The focus was and still is on the UAL, because that balance accrues interest, at that time it was at a rate of seven percent, so prepayment of this debt provides the greatest cost benefit. Based upon the valuations for the year ended June 30, 2018, the combined UAL of the Safety and Miscellaneous plans was $511 million.
The Fina
nce Committee directed staff, to provide to the City Council, an option to utilize the Trust to buy down the Safety UAL through ADPs over the course of several years.
This action would accelerate the payoff of the Safety UAL from 24 to 19-years, along with smoothing out future payment increases. The City Council was set to act on this in March 2020, but the plan was put on hold due to COVID and the economic uncertainty that it brought. Since that time, the Trust has remained invested and has grown to approximately $14.9 million. Due to market volatility and plan losses since 2020 in the two CalPERS pension plans, the combined UAL has increased to $595 million, despite the City continuing to make annual payments.
While t
he UAL is referenced as a lump sum value when presented to the City Council, the UAL is comprised of dozens of individual outstanding amounts related to gains, losses, and assumption changes accumulated over a period of up to 30-years. The Miscellaneous UAL is comprised of 38 individual amounts while the Safety UAL is comprised of 36 individual amounts. These individual amounts are important to understand collectively and individually when evaluating options for utilizing the Trust.
Addit
ionally, since the General Fund provides about 31 percent of the funding for the Miscellaneous Plan, the recommended use of the Trust is for the Safety Plan, where the General Fund supports more than 90 percent of the funding.
Approve Options for Utilizing the Section 115 Pension Trust, Initiating Fresh Starts with CalPERS, and Reviewing the General Fund Forecast
December 8, 2025
As the
City Council is aware, while the General Fund Operating Budget has been balanced each year, it has been challenging, with many projects unfunded or under- funded, and the near-term horizon of the five-year forecast continues to show expenditure growth outpacing revenue growth. Personnel and pension costs are the largest portions of the General Fund and play a significant role in expenditure growth until FY 2031 due to increasing UAL payments. Staff have been reviewing ways to help maintain a balanced General Fund Operating Budget for the long-term and the prudent use of the Trust to provide stability, long-term savings, and minimize the need for reductions.
Fresh S
tart and ADP
The annual
CalPERS valuations provided each year serve as the basis for calculating an ADP or Fresh Start. However, since the data in these valuations are 12-24 months outdated, additional financial modeling is needed to project the future impact of an ADP or Fresh Start on future payments. The modeling and forecasts in these recommendations has been done in coordination with CalPERS actuarial staff to ensure that it was done as accurately as possible.
CalPE
RS provides a refinance option called a “Fresh Start” where the current individual UAL amounts can be refinanced into one lump sum amount over a duration of time that yields a net savings. This option is similar to consolidating various outstanding debts into one loan with a fixed interest rate and repayment term. A Fresh Start by itself generally comes at a higher annual cost due to the reduced payoff period; however, when combined with an ADP from the Trust, can yield lower overall annual payments as well as a shorter duration and long-term savings. The proposed action includes implementing a Fresh Start for the Safety plan and using the Trust for an ADP to buy down overall future payments. For the Safety Plan, a 16-year Fresh Start with an ADP of $7 million in FY 2026 and utilizing the remainder of the Trust, $7.5 million, from FY 2027 through 2029 towards UAL payments reduces the payoff by 2-years. Through utilizing these two methods, the City would realize a total General Fund savings of $10.4 million over the repayment period. More importantly, over the five-year forecast, the restructuring plan will reduce total City General Fund payments by $14.8 million.
Targeting FY 2029 is critical as that is the peak of future UAL payments under the current repayment schedule.
Approve Options for Utilizing the Section 115 Pension Trust, Initiating Fresh Starts with CalPERS, and Reviewing the General Fund Forecast
December 8, 2025
The char
t below is a representation of total UAL payments on an annual basis. The green bars represent the current funding requirements, and the brown bars represent the proposed restructuring.
The foll
owing chart covers the same period but is focused on the General Fund. For the General Fund, the current year payment is $30.9 million, and the goal is minimizing annual increases or reduce that payment over time. In the proposed scenario, the FY 2027 to 2037 payments will peak at approximately $32.3 million instead of $37.0 million.
Attachment B provides the detailed amounts.
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
All Funds UAL
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
General Fund UAL
Approve Options for Utilizing the Section 115 Pension Trust, Initiating Fresh Starts with CalPERS, and Reviewing the General Fund Forecast
December 8, 2025
Impac
t on the General Fund Forecast
As prev
iously shared with the City Council, the General Fund Five-Year Forecast, projects challenging years ahead with traditional tax revenue growth having slowed significantly in the past two-years and expenditures continuing to increase. The table below represents the current forecast, which includes what has been approved by the City Council since the original FY 2026 Operating Budget adoption in June 2025. This forecast reflects a projected shortfall of $7.6 million for FY 2027 and a deficit each year after.
The foll
owing table represents the forecast with the use of the Trust to implement the Fresh Start and ADP strategy.
FY 2024 F Y 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Final Revised Budget Adopted Forecast Forecast Forecast Forecast Beginning Amount Available for Appropriations 18,086,075 16,215,712 1,892,613 (187,854) (7,825,886) (14,396,714) (23,671,452) Revenues
Tax Revenues 262,958,941 265,657,100 274,625,007 283,775,540 294,851,749 305,997,986 317,615,437 Other Revenues 66,399,883 63,534,748 360,206,775 58,953,162 60,387,510 61,858,374 63,366,702 Contributions/Svs. From Other Funds 20,140,438 30,272,305 30,640,438 34,601,061 37,043,365 39,617,879 42,325,266 Total Revenues 349,499,262 359,464,153 665,472,220 377,329,764 392,282,624 407,474,239 423,307,405 Expens es
Personnel 206,097,494 227,579,977 232,560,605 249,170,618 260,514,602 274,716,716 286,135,287 Debt Service 11,619,669 12,318,397 12,323,128 12,317,139 11,290,184 11,288,643 11,287,860 Contributions To Other Funds 25,269,239 18,184,193 15,180,375 15,483,983 15,793,662 16,109,535 16,431,726 Other Expenses 112,156,731 110,859,318 104,852,317 107,996,056 111,255,004 114,634,082 118,138,441 Total Expenses 355,143,133 368,941,885 364,916,425 384,967,795 398,853,452 416,748,977 431,993,314 Operating Income/(Loss) (5,643,871) (9,477,732) (2,080,467) (7,638,032) (6,570,828) (9,274,738) (8,685,910) Ending Amount Available for Appropriations 12,442,204 6,737,980 (187,854) (7,825,886) (14,396,714) (23,671,452) (32,357,362) General Fund Five-Year Forecast
FY 2024 F Y 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Final Draft Final Revised Budget Forecast Forecast Forecast Forecast Begin
ning Amount Available for Appropriations 18,086,075 16,215,712 1,490,347 (698,120) (5,817,763) (11,094,972) (17,710,711) Revenues
Tax Revenues 262,958,941 270,710,303 274,625,007 283,775,540 294,851,749 305,997,986 317,615,437 Other Revenues 66,399,883 63,166,719 58,070,513 58,953,162 60,387,510 61,858,374 63,366,702 Contributions/Svs. From Other Funds 20,140,438 30,272,305 30,640,438 34,601,061 37,043,365 39,617,879 42,325,266 Total Revenues 349,499,262 364,149,327 363,335,958 377,329,764 392,282,624 407,474,239 423,307,405 Expens es
Personnel 206,097,494 232,834,943 233,456,605 246,652,229 259,220,983 272,057,717 284,345,448 Debt Service 11,619,669 12,315,758 12,323,128 12,317,139 11,290,184 11,288,643 11,287,860 Contributions To Other Funds 25,269,239 16,618,230 14,780,375 15,483,983 15,793,662 16,109,535 16,431,726 Other Expenses 112,156,731 109,049,693 104,964,317 107,996,056 111,255,004 114,634,082 118,138,441 Total Expenses 355,143,133 370,818,624 365,524,425 382,449,406 397,559,833 414,089,978 430,203,475 Operating Income/(Loss) (5,643,871) (6,669,297) (2,188,467) (5,119,643) (5,277,209) (6,615,739) (6,896,071) Ending Amount Available for Appropriations 12,442,204 9,546,415 (698,120) (5,817,763) (11,094,972) (17,710,711) (24,606,782) General Fund Five-Year Forecast with Fresh Start and ADP
Approve Options for Utilizing the Section 115 Pension Trust, Initiating Fresh Starts with CalPERS, and Reviewing the General Fund Forecast
December 8, 2025
Util
ization of the funding strategy reduces the projected shortfall to $5.1 million in FY 2027 and the out-year forecast to shortfalls of less than $6.9 million annually. While this funding strategy does not solve for the total challenge, it reduced the projected cumulative shortfall through FY 2030 by $7.75 million. Additionally, each fiscal year the total UAL and corresponding annual payment is impacted by the actual results from investment and non-investment factors. If CalPERS were to earn more than its 6.8 percent target investment return, the UAL would be reduced further and conversely, if CalPERS earns less than the 6.8 percent target, the UAL will increase. The General Fund Five-Year forecast is developed considering CalPERS’ initially reported 11.6 percent investment return as of June 30, 2025, and future earnings of the assumed rate of 6.8 percent.
While t
here is no single remedy for the future budget challenges in the General Fund, the City has maximized internal means for fund transfers and support and has worked diligently over the last few years to ensure revenue collection is maximized. One example, is the increase in billing and collections for Emergency Medical Services, where revenue has increased from $6.6 million in FY 2020 to a projected $12.3 million in FY 2026. Staff will continue work on long-term strategies to stabilize and balance the budget.
COUNCIL POLICY CONSIDERATION:
The Cit
y Council’s strategic planning goal of maintaining fiscal responsibility and stability will be advanced by the commitment of utilizing the Section 115 Trust funds to pay down pension obligations on a reduced repayment timeline and realizing long-term savings.
Attachment A
All Funds
Fresh Start w/11.6% Return and Misc. Payroll Adj.
Misc UAL Safety UAL Annual Pmt Safety ADP Misc. Safety 16 Year Annual Pmt Annual Payment Difference 2024-25 34,530,573 16,364,267 50, 894,840 34, 530,573 16, 364,267 50, 894,840 - 2025-26 35,278,026 20,584,672 55, 862,698 7,0 00,000 35, 278,026 20, 584,672 55, 862,698 - 2026-27 37,482,226 23,027,863 60, 510,089 37, 482,226 23, 525,795 61, 008,021 497 ,932 2027-28 38,720,120 23,186,929 61, 907,049 38, 720,120 22, 754,891 61, 475,010 (43 2,038) 2028-29 41,628,818 24,875,667 66, 504,485 41, 628,818 21, 983,987 63, 612,804 (2, 891,680) 2029-30 40,788,939 24,274,431 65, 063,370 40, 788,939 21, 213,083 62, 002,022 (3, 061,348) 2030-31 39,801,800 23,642,782 63, 444,582 39, 801,800 20, 442,179 60, 243,979 (3, 200,603) 2031-32 33,202,320 22,389,242 55, 591,562 33, 202,320 19, 671,275 52, 873,595 (2, 717,967) 2032-33 32,466,878 22,134,253 54, 601,131 32, 466,878 19, 671,275 52, 138,153 (2, 462,978) 2033-34 29,192,232 20,650,560 49, 842,792 29, 192,232 19, 671,275 48, 863,507 (97 9,285) 2034-35 27,744,619 19,984,453 47, 729,072 27, 744,619 19, 671,275 47, 415,894 (31 3,178) 2035-36 25,632,208 18,822,000 44, 454,208 25, 632,208 19, 671,275 45, 303,483 849 ,275 2036-37 22,120,060 16,830,240 38, 950,300 22, 120,060 19, 671,275 41, 791,335 2,8 41,034 2037-38 20,160,590 15,616,318 35, 776,908 20, 160,590 19, 671,275 39, 831,865 4,054,956 2038-39 18,077,608 14,323,933 32, 401,541 18, 077,608 19, 671,275 37, 748,882 5,3 47,341 2039-40 16,454,162 13,314,541 29, 768,703 16, 454,162 19, 671,275 36, 125,437 6,3 56,733 2040-41 15,377,143 12,751,635 28, 128,778 15, 377,143 19, 671,274 35, 048,417 6,9 19,639 2041-42 9,374,429 10,075,977 19, 450,406 9,3 74,429 3,7 81,989 13, 156,418 (6, 293,988) 2042-43 5,695,601 9,135,543 14, 831,144 5,6 95,601 5,6 95,601 (9, 135,543) 2043-44 2,095,045 5,806,930 7,9 01,975 2,0 95,045 2,0 95,045 (5, 806,930) 2044-45 - -
2045-46 - -
2046-47 -
525,823,395 357,792,239 883,615,634 525 ,823,395 347 ,363,608 873 ,187,003 (10 ,428,631) Current
Attachment B
General Fund Assumptions
Current Fresh Start w/ADP
Safety ADP Misc UAL Safety UAL Annual Pmt Misc. Safety 14 Year Annual Pmt w/Section 115 2024-25 10,704,478 15,873,339 26,577,817 10,704,478 15,873,339 26,577,817 26,577,817 2025-26 7,000,000 10,936,188 19,967,132 30,903,320 10,936,188 19,967,132 30,903,320 30,903,320 2026-27 3,000,000 11,619,490 22,337,027 33,956,517 11,619,490 22,820,021 34,439,511 31,439,511 2027-28 2,000,000 12,003,237 22,491,321 34,494,558 12,003,237 22,072,244 34,075,481 32,075,481 2028-29 1,000,000 12,904,934 24,129,397 37,034,331 12,904,934 21,324,467 34,229,401 33,229,401 2029-30 12,644,571 23,546,198 36,190,769 12,644,571 20,576,690 33,221,261 33,221,261 2030-31 12,338,558 22,933,499 35,272,057 12,338,558 19,828,913 32,167,471 32,167,471 2031-32 10,292,719 21,717,565 32,010,284 10,292,719 19,081,137 29,373,856 29,373,856 2032-33 10,064,732 21,470,226 31,534,958 10,064,732 19,081,137 29,145,869 29,145,869 2033-34 9,049,592 20,031,043 29,080,635 9,049,592 19,081,137 28,130,728 28,130,728 2034-35 8,600,832 19,384,920 27,985,751 8,600,832 19,081,137 27,681,968 27,681,968 2035-36 7,945,984 18,257,340 26,203,325 7,945,984 19,081,137 27,027,121 27,027,121 2036-37 6,857,219 16,325,333 23,182,552 6,857,219 19,081,136 25,938,355 25,938,355 2037-38 6,249,783 15,147,829 21,397,612 6,249,783 19,081,136 25,330,919 25,330,919 2038-39 5,604,058 13,894,215 19,498,274 5,604,058 19,081,136 24,685,195 24,685,195 2039-40 5,100,790 12,915,105 18,015,895 5,100,790 19,081,136 24,181,927 24,181,927 2040-41 4,766,914 12,369,086 17,136,000 4,766,914 19,081,136 23,848,051 23,848,051 2041-42 2,906,073 9,773,698 12,679,771 2,906,073 3,668,529 6,574,602 6,574,602 2042-43 1,765,636 8,861,477 10,627,113 1,765,636 - 1,765,636 - 2043-44 649,464 5,632,722 6,282,186 649,464 - 649,464 - 2044-45 - - - - - - -
2045-46 - - - - - - -
2046-47 - - - - - - -
163,005,253 347,058,472 510,063,724 163,005,253 336,942,700 499,947,952 491,532,852
NEW BUSINESS
ITEM 4
4. AMENDMENT TO THE FISCAL YEAR 2026 GENERAL FEE SCHEDULE
RESOLUTION NO. ___ _
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PASADENA AMENDING THE GENERAL FEE SCHEDULE FOR FISCAL YEAR 2026
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASADENA RESOLVES AS FOLLOWS:
1. The Fiscal Year 2026 General Fee Schedule, adopted on June 16, 2025, is amended by amending its fees for birth and death certificates as shown in highlight in Attachment A.
2. The amended fees referenced above shall take effect on January 1, 2026, in accordance with the relevant fee schedule.
Adopted at the regular meeting of the City Council on the __ day of December, 2025 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Approved as to form:
0(2
Arnold F. Lee
Chief Assistant City Attorney
VYUKDA270O4MJE
Mark Jomsky
City Clerk