Office of the City Manager
City Council Priorities
Follow-up Workshop
April 6, 2026
Workshop Purpose
Part I – Budget Workshop Follow-up
• Confirm the five refined priority descriptions
• Agree on a reporting cadence and format
• Discuss a simple protocol for mid-year shifts in priorities • KPI approach
Part II – Funding Discussion
• Funding Realities & Strategic Choices
• Funding Approach for Top Priorities
• Local Funding Options
• Response to Council request regarding ballot measures 2 Council’s Top 5 Priorities
3 Council’s Top 5 Priorities
• Modernize fire department facilities & Enhanced Fire Prevention > Facilities upgrades; Training Center; Brush clearance • Improve roadways & implement pedestrian/bike safety strategies > Pavement condition, Enforcement, Pedestrian/bike safety • Invest in year-round shelter & transitional housing
> Year-round facility, Transitional housing, Pathway to stability • Move Pasadena decisively toward a carbon-free future
> Resolution 9977, Clean energy procurement, Infrastructure modernization
• Implement Economic Development Strategic Plan with
placemaking focus
> Economic Development Strategic Plan, Streetscapes, Neighborhood plans
4 Recommended Progress Reporting
• Quarterly Dashboard
> High-level Status update
> Traffic light indicators (on track / at risk / off track) > Short narrative on progress, challenges & risks
• Mid-Year Deep Dive
> More detailed review of each priority area
> Adjustments, reprioritization, and financial impacts
• Reporting Format – Decision Needed
> Full Council presentations
> Council committee review
> Public-facing website for transprarency and continues updates 5
When Should Priorities Shift?
• Possible Triggers:
> New funding or grant opportunities
> Significant constraints (staffing, capacity, cost escalation) > State/federal mandates or emergencies
> Prolonged lack of progress due to external factors
• Draft Adjustment Protocol:
> Trigger identified
> Staff analysis of impact
> Discussion & direction during quarterly or mid-year check-ins • Competing Priorities:
> Immigration policy development
> Investment policy
> Olympics
> Quasi-judicial appeals 6
Key Performance Indicators (KPIs)
Where We Are Today With KPIs?
Departments already track hundreds of KPIs
• Most existing KPIs are:
> Activity-focused (counts, volumes, turnaround times)
> Operationally useful
• Departments developing new, outcome-based KPIs to
strengthen measurement of results.
• Introducing an initial set of revised KPIs for FY 2027 as a foundation for future expansion.
> Updated KPIs will be included in FY 2027 department budget presentations.
7 Key Performance Indicators (KPIs)
If KPIs Are Going to Drive Decisions…They Must Measure
the Right Things
• KPIs become meaningful when tied to Council’s goals
(beyond only the top 5)
• “Right” KPIs clearly show whether the City is moving the needle on the outcomes Council wants to influence.
How Council Can Shape Them
• As departments present their FY 2027 budget proposals, Council feedback will help refine and strengthen these
KPIs.
8 Funding Realities & Strategic Choices
• General Fund forecast does not anticipate capacity to increase funding for these priorities
• Federal reductions for formula funding not as severe as threatened, but grant eliminations are being realized
• Departments are already advancing work aligned with
the 5 priorities
> Priority work is being challenged by workload of other projects • Council discussion point:
> Staff can revisit proposed CIP and recommend projects shifts that only focus on the priorities when feasible/allowable
> Direct staff to bring back options for larger Operating Budget decisions (reallocation, reductions, new revenues, timing shifts) 9 Funding Approaches for Top Priorities
• Modernize fire department facilities & Enhanced Fire Prevention ($200M)
> Current Approach: Pursue new revenue sources.
• Improve roadways & implement pedestrian/bike safety strategies ($125M+)
> Current Approach: Pursue new revenue sources, re-evaluate all relevant CIP to prioritize achieving this goal.
• Invest in year-round shelter & transitional housing
($10M+ capital; $2-$4M annually)
> Current Approach: Leverage grants, County partnerships, and use of City-owned property for a future shelter.
• Implement Economic Development Strategic Plan with placemaking focus ($25M+)
> Current Approach: Pursue grants, consider EIFD, align with ongoing development activity.
10 Local Funding Options
• Use Tax similar to Measure I – general or special
tax
> Current capacity of quarter-cent - $11m annually
> Capacity depends on County measure and AB 1768
• Parcel Tax – special tax
> Could fund priorities around Fire and/or Streets
> Can be assessed on a variety of factors: parcel size, parcel use type, developed square footage, etc.
> Time limited or until repealed
• Benefit type district – special tax
> Likely Fire specific
> Could be a district of all or part of the City11
Local Funding Options
• Transfer Tax – likely a special tax
> Tax on real estate sales transactions
> Expected statewide November ballot measure to
prohibit local transfer tax
> Revenue can be volatile based on economic
climate
• Parking Tax – general of special tax
> Similar to TOT in terms of percentage tax charged
on parking rates
> Generally, applies to all paid parking
> Limited revenue growth over time
12 Local Funding Options
• November 2026 Election
> Would need to place an item by early August
> Expect a constitutional amendment on the
statewide ballot regarding voter initiated measures
and real estate transfer taxes
Require all special taxes to receive 2/3 approval
Prohibit all exisitng and future local transfer taxes • Benefit Districts
> Could follow various timelines not tied to a general
election
13 Ballot Measure Follow-up
• County Sales Tax Measure and AB 1768 (Bryan)
> Half-cent sales tax as a General Tax Measure
> Plan to allocate formula revenue to Pasadena/Long
Beach
> Current legal limit of quarter-cent unless AB 1768
approved
> Estimate of $22m of tax revenue generated in
Pasadena
> Cities opposed and expect legal challenges
• AB 1768
• Hearing of headwinds around approval of counties
pushing higher over the 2% cap
14