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May 5, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Matthew E. Hawkesworth, Interim City Manager
SUBJECT: Recommended Fiscal Year 2027 to 2031 Capital Improvement Program I am pleased to present the City of Pasadena's Recommended Fiscal Year (FY) 2027-2031 Capital Improvement Program (CIP) Budget. This five-year plan reflects the City's ongoing commitment to maintaining, enhancing, and preserving the infrastructure that supports our community.
The CIP includes 225 active projects with a total estimated cost of approximately $3 billion.
The FY 2027 budget introduces 25 new projects and recommends $249 million in new appropriations across 106 projects. It also includes approximately $47 million in grant funding, demonstrating the City's continued success in leveraging external resources to advance infrastructure improvements citywide.
Despite this significant level of investment, the City's infrastructure needs continue to outpace available funding. Current estimates identify approximately $1.7 billion in unmet capital needs, underscoring the challenge of maintaining aging assets while advancing new improvements. Pasadena's capital program relies primarily on local revenues, long-term debt financing, special revenue sources, and County, State and Federal grants. As project cost rises, funding constraints limit the City's ability to advance major initiatives such as fire station replacements, roadways improvements, pedestrian and bicycle safety enhancements, and clean-energy and sustainability projects.
Maintaining and enhancing the City's roadway network remains a priority in the FY 2027 CIP.
The budget recommends $8.6 million be appropriated for the Annual Citywide Street Resurfacing and ADA Improvement Program. Through a strategic reallocation of funds from completed or deferred FY 2026 projects, total available funding is anticipated to increase to approximately $10.8 million. This level of investment will allow the City to sustain current pavement conditions, hlowever, consultant and independent auditor analyses indicate that approximately $17.1 million in annual funding would be required to achieve measurable systemwide improvement - equivalent to an increase of about one pavement condition index 1 Attachment D
(PCI) point per year. Continued evaluation of long-term funding strategies is essential to address street maintenance needs.
The FY 2027-2031 CIP also advances the City's commitment to transportation safety and multimodal mobility. Staff continue to analyze collision data to prioritize improvements for motorists, bicyclists, and pedestrians. The recommended CIP includes several continuing safety improvement initiatives, such as the North Lake Avenue Traffic and Pedestrian Safety Enhancements, the Pedestrian Crossing Enhancements Program FY 2021-2028, and the Citywide Continental Crosswalk Implementation. Two new Pedestrian Hybrid Beacon projects have been added to improve pedestrian safety at Lincoln Avenue and Toolen Place, and at Lake Avenue and Elizabeth Street - both high-traffic locations in the Northwest district.
The CIP supports the city's greenhouse gas reduction and sustainability goals through projects such as the Purchase of Zero-Emission Pasadena Transit and Dial-A-Ride Vehicles and Supporting Infrastructure projects. Community engagement remains central to project delivery, with outreach planned for several major initiatives, including North Lake Ave Traffic and Pedestrian Safety Enhancements, Greenways Implementation, Columbia Street Multimodal Improvements, Pasadena Avenue and St. John Ave Street Improvements, and the Rose Bowl Multimodal Olympic Route. These projects will continue to advance through design and construction using prior year appropriations.
The program also prioritizes continued investment in the City's water system to ensure safe, reliable sen/ice and enhancing the system's long-term resiliency to future natural and manmade disasters. Key FY 2027 infrastructure improvement initiatives include systemwide security upgrades, replacement of the Don Benito Reservoir damaged during the 2025 Eaton windstorm and wildfire, and enhancements to booster stations that support water quality, fire protection, and operational efficiency. Additional major initiatives include the Sunset Complex water storage project, citywide water main replacements, expanding groundwater recharge in the Arroyo Seco Canyon, and continuing development of advanced water reuse to bolster supply reliability and long-term sustainability.
Similarly, the CIP advances significant reinvestment levels in the City's electric system to modernize core infrastructure, support clean energy expansion goals, and maintain dependable service. The FY 2027 budget includes approximately $11 million for Advanced Metering Infrastructure and $31.6 million for the Subtransmission Path 2 Upgrade, along with continued upgrades to substations, distribution equipment, and electric vehicle charging infrastructure. Additional investments support large-scale energy storage, municipal-owned solar, and department-wide technology improvement projects, including enhancements to the Enterprise Asset Management System project. Collectively, these efforts improve system resiliency, enhance operational efficiency, and support Pasadena's transition toward a more sustainable, flexible, and customer-focused energy future. 2 Attachment D
Beyond core infrastructure systems, the CIP continues to invest in parks and recreational facilities that enhance community use, accessibility, and quality of life. Recent improvements include resurfaced courts, walkway repairs, and new shade structures at several parks. The FY 2027 budget builds on this progress with approximately $1.8 million in park improvement projects including outdoor exercise equipment replacement at Memorial and Brookside parks.
These investments enhance park and recreational conditions, improve safety, and extend the useful life of heavily utilized recreational spaces.
Together, the initiatives outlined in this CIP represent a coordinated strategy to maintain essential infrastructure, improve public safety, and enhance the quality of life for Pasadena residents. Through disciplined planning and targeted investment, the City remains committed to delivering reliable services, strengthening long term resiliency, and supporting a sustainable future for the community.
Respectfully Submitted,
Matthew E. Hawkesworth
Interim City Manager
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