Council Nears Final Approval of $1.41 Billion 2027 City Budget After Weeks of Review

The City Council is expected to adopt the city’s Fiscal Year 2027 budget on June 8 following several weeks of committee hearings and public deliberations.

The proposed budget totals approximately $1.41 billion across all city funds, compared with roughly $1.51 billion in the current fiscal year, reflecting an overall decline in spending.

Despite the reduction in the total budget, Pasadena’s General Fund — the city’s primary operating account used to fund core municipal services — would increase from about $364.9 million to $383.4 million under the proposal.

City officials said the budget proposal largely maintains existing service levels while attempting to address rising personnel costs, infrastructure demands and long-term financial pressures.

Per the City Charter, the City Manager must submit a proposed budget by the third Monday in May, with the City Council required to adopt a final spending plan by mid-June.

The proposed spending plan includes a roughly $2.5 million reduction in Health Department funding tied largely to the expiration of grants supporting homeless outreach and public health programs. Officials warned the loss of grant funding could place 21 full-time positions at risk unless replacement funding is identified.

Among the affected programs is the Pasadena Outreach Response Team, known as PORT, which provides services to people experiencing homelessness. Expiring grants also currently fund an infectious disease outreach worker and a full-time nurse.

Last week, members of the Public Safety Committee called for long-term funding for the PORT program.

According to city staff, maintaining those services and expanding the city’s Health Officer role into a full-time position would cost an estimated $511,000.

The city is pursuing additional grant opportunities but may rely on one-time General Fund dollars to temporarily sustain PORT operations if outside funding is not secured.

The General Fund supports city operations including police and fire services, public works, libraries, housing and human services, transportation, planning and administrative departments.

The Fiscal Year 2027 budget relies on approximately $1.6 million in one-time sales tax revenue and another $3.8 million in reserve funds to remain balanced.

A five-year financial forecast included in the proposal projects growing deficits if current spending trends continue. According to the city, revenues are expected to grow between 3% and 4% annually while expenditures are projected to rise between 4% and 6%.

Recommended additions in the proposed budget include accessibility upgrades for city websites and public documents, expanded economic development marketing and additional funding for the Pasadena Fire Department’s paramedic training program.

Other pending or unfunded items include approximately $910,000 in proposed police technology upgrades ahead of the 2028 Olympic Games and an estimated $600,000 startup cost to transition parking enforcement services in-house.