The City Council on Monday will consider a series of amendments to Pasadena’s Fiscal Year 2026 operating budget, adding nearly $17 million in appropriations across multiple departments to address unanticipated needs, carry-forward funds, and new grant awards.
According to a report from the Department of Finance, the proposed adjustments include $13.6 million in re-appropriations from unspent fiscal year 2025 funds and another $3.4 million in new budget amendments based on updated information and funding received after the fiscal year 2026 budget was adopted in June.
In total, $13.1 million in purchase orders and contracts from fiscal year 2025 will be carried over into the new fiscal year due to supply chain delays affecting delivery of goods and services. Another $633,000 in grant funds will also roll forward to support the Dine Out Pasadena program and Fire Department emergency response equipment.
The Pasadena Fire Department will receive $610,940 in additional appropriations. About $533,690 in residual strike team revenue from the Governor’s Office of Emergency Services will fund a new rapid extraction module support vehicle, improvements at Fire Stations 33 and 38, and upgrades to an incident command vehicle.
An additional $77,250 comes through a regional Urban Search and Rescue (US&R) training reimbursement agreement for Task Force Four, which includes Pasadena and six neighboring fire departments.
The Housing Department will recognize more than $3.1 million in new revenues and appropriate $5.7 million for housing and homelessness initiatives. The amendments include remaining funds from a $5 million Affordable Housing Sustainable Communities state grant, $1.6 million for Caltrans home acquisitions, and $1 million transferred between housing funds to bolster rental assistance programs affected by federal cuts. The department will also allocate $491,913 in additional Measure A funds from Los Angeles County, $168,000 in Homeless Housing Assistance and Prevention grant funds to the Public Health Department, and $97,000 for the delayed purchase of electric vehicles for the city’s MASH program.
The Human Resources Department recommends spending $312,200 from the Air Quality Improvement Fund to purchase and lease clean-air vehicles and equipment for several departments, including Parks and Recreation, Public Works, and Water and Power. Two Urban Area Security Initiative (UASI) grants totaling $110,000 will support the Fire and Public Health departments, including the purchase of portable respirator kits and the development of emergency response training.
The Pasadena Public Health Department also received a $20,000 grant from the Pasadena Community Foundation to purchase car seats, cribs, and other infant safety supplies, as well as to conduct educational workshops for families.
Altogether, the proposed carry-forwards and amendments would raise fiscal year 2026 appropriations by $17 million, partially offset by $3.5 million in new revenues. The city’s General Fund unappropriated balance would decrease by about $2.6 million.
The amendments reflect Pasadena’s commitment to fiscal responsibility by adapting to midyear needs while maintaining stable operations. The report also determined that the actions do not constitute a project under the California Environmental Quality Act.
Here are the remaining items on Monday’s consent calendar:
- A new long-term contract with Empower Annuity Insurance Company of America (Empower Retirement) to continue managing Pasadena’s deferred compensation and defined contribution plans. Under the proposal, the city’s Deferred Compensation Plan Administrator — the Director of Finance — would be authorized to enter into a five-year contract with Empower, with an option for one five-year extension. Empower will continue providing plan administration, investment options, record keeping, and participant education services for the city’s 457(b) and 401(a) retirement plans. The City currently administers a 457(b) deferred compensation plan, which allows employees to make pre-tax or after-tax contributions toward their retirement, and a smaller 401(a) plan for eligible employees. More than 2,800 employees participate in the plans, which together hold over $400 million in assets. The City Council serves as the plan’s trustee body, alongside an Oversight Committee composed of three elected employee representatives and two mayoral appointees. The Finance Director serves as Plan Administrator, and Morgan Stanley’s Fiduciary Consulting Group acts as the committee’s independent financial advisor, conducting quarterly investment reviews and ensuring compliance with the plan’s policies. The current contract with Empower — which began when the company was known as Great-West Life & Annuity — expired June 30 and has been operating on a month-to-month basis. According to the Finance Department, the contract’s annual fees will be paid by plan participants, not by the city, resulting in no fiscal impact to Pasadena’s general fund. Empower has managed Pasadena’s employee retirement plans since 2012 and, according to the staff report, “has provided .
- A three-year extension of the city’s standby bond purchase agreement with BMO Bank, N.A., ensuring continued financial backing for the Paseo Colorado bonds through 2028. The extension maintains the city’s variable rate demand lease revenue bonds — which financed improvements to the Paseo parking facilities and adjacent public spaces — under a favorable annual fee of 0.35%, according to a report from the Department of Finance. Originally issued in 2000 for $32.4 million, the Paseo Colorado bonds helped fund upgrades to public infrastructure and the acquisition of lease rights associated with the former Plaza Pasadena redevelopment.
- Approval of the formal commitment of more than $68 million in General Fund reserves — including $51.3 million for emergency contingencies and up to $17.1 million for the city’s operating reserve — as part of Pasadena’s ongoing effort to maintain long-term fiscal stability. According to a report from the Department of Finance, the action fulfills Government Finance Officers Association (GFOA) best practices and the City Council’s strategic goal of fiscal responsibility by ensuring the city maintains sufficient reserves to weather revenue shortfalls, unanticipated expenses, or natural disasters without reducing service levels or raising taxes. The city’s reserve policy divides its overall 20% General Fund reserve into two parts: a 15% emergency contingency and a 5% operating reserve. The emergency fund serves as Pasadena’s financial safety net for major economic or natural disaster events, while the operating reserve is intended to stabilize operations in the event of significant budget disruptions. For Fiscal Year 2025, the Finance Department recommended setting aside $51,292,500 for the emergency contingency and up to $17,097,500 for the operating reserve. The exact operating reserve amount will be finalized after the city’s fiscal year 2025 financial statements are completed. No emergency reserves were used in response to the Eaton Fire earlier this year. The total committed reserves for fiscal year 2025 reflect an overall increase of roughly $3.7 million from the previous year, with both categories of reserves rising modestly. Including the city’s Section 115 Trusts for pension and other post-employment benefits, Pasadena’s total fund balance increased from $80.4 million in fiscal year 2024 to $85.4 million in fiscal year 2025. The report emphasized that maintaining robust reserves is crucial to preserving the city’s strong bond ratings, which help reduce borrowing costs for capital projects.
- Authorization of a $7.1 million grant agreement with the Los Angeles County Metropolitan Transportation Authority (Metro) to fund a major transportation project linking the city’s Metro A Line station to the Rose Bowl ahead of the 2028 Olympic and Paralympic Games. The funding comes from Metro’s Active Transport, Transit, and First/Last Mile Program (MAT) Cycle 2, and will be used for the design and construction of the Pasadena Rose Bowl Multimodal Olympic Route — a key corridor expected to carry thousands of visitors between downtown Pasadena and the Rose Bowl during the Games. The new multimodal route will begin at Holly Street and the Memorial Park Metro Station, travel west along Pasadena Avenue and Walnut Street, and continue to Orange Grove Boulevard before ending near Rosemont Avenue — within a half-mile of the A Line station, as required under program rules. The project aims to improve active transportation access — including walking, biking, and transit connectivity — between downtown Pasadena, the Rose Bowl, the Aquatics Center, and Brookside Park. It also supports long-term mobility improvements that will remain in place after the Olympic events. Pasadena’s Rose Bowl Stadium is slated to host the semifinals and finals for men’s and women’s soccer during the 2028 Olympics, while the Rose Bowl Aquatics Center will host diving competitions. The city entered into a venue agreement with the Los Angeles Organizing Committee in March. The MAT program, funded through Measure M, provides competitive grants to Los Angeles County cities to enhance regional active transportation networks. Metro identified Pasadena as a priority location for Olympic “first/last mile” transit improvements after conducting a countywide mobility study of 2028 venue sites. The project will move through several phases, including concept development, environmental review, engineering design, and construction. City officials said extensive community engagement — such as workshops, walking tours, and pop-up events — will help shape the final design. The Department of Transportation is coordinating the effort with LA28, Caltrans, LA Metro, and LADOT, as well as local partners including the Rose Bowl Operating Company and Pasadena business districts. The $7,171,250 grant will be added to the city’s Fiscal Year 2026 Capital Improvement Program for the “Mobility Hubs and First/Last Mile Improvements” project. The grant requires no local matching funds and has no impact on the General Fund, officials said.
- Application and acceptance of $136,786 in state transportation funds to enhance bus stops across Pasadena — improving comfort, safety, and accessibility for transit riders citywide. The grant application will be submitted to the California Department of Transportation (Caltrans) under the Low Carbon Transit Operations Program (LCTOP), a statewide initiative aimed at reducing greenhouse gas emissions and encouraging low-emission transit use. According to a report from the Department of Transportation, the grant would fund a series of upgrades under Pasadena’s Bus Stop Improvement Program, including new and replacement shelters, benches, lighting, and real-time travel information displays. Improved lighting will increase visibility during early morning and evening hours, while real-time travel displays will help riders plan their trips more efficiently. The city plans to allocate about $114,000 of the total investment to benefit priority populations, including low-income residents and disadvantaged neighborhoods, consistent with state climate equity goals. The LCTOP grant is part of California Climate Investments, which directs state cap-and-trade revenues toward sustainable transportation and clean energy projects. Each year, Caltrans and the California Air Resources Board allocate LCTOP funds to local transit agencies on a non-competitive basis. Pasadena’s Transportation Department must submit qualifiscal yearing project documentation and a City Council resolution authorizing the city manager to execute required certifications and forms before the state releases funds. The funding would be provided upfront, in advance of construction. If approved, the City Council will amend the Fiscal Year 2026 Capital Improvement Program to appropriate the $136,786 to the Bus Stop Improvement Program (CIP Project 75900). The funding carries no local match requirement and has no impact on the General Fund. City officials determined the action is not subject to the California Environmental Quality Act (CEQA) since it involves administrative and fiscal activity rather than a physical project.
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