City Council Opens Public Hearing on 2027 Budget, Sets Detailed Review Schedule Through June

The City Council on Monday opened a public hearing on the city’s proposed Fiscal Year 2027 operating budget, launching a multi-week review process that will include a series of committee meetings and public discussions before final adoption in June.

The proposal includes approximately $383.4 million in General Fund spending and about $1.41 billion across all funds, including affiliated agencies and the Capital Improvement Program.

“Balancing the budget has become increasingly challenging as the City continues to operate in an environment marked by economic uncertainty, persistent inflationary pressures and concerns about a potential economic slowdown,” wrote Interim City Manager Matthew Hawkesworth in the budget transmittal letter. “The widening structural deficit — driven by expenditure growth that consistently outpaces revenue growth — underscores the need for proactive fiscal management. Without adjustments to service levels, staffing or long-term financial strategies, the gap between revenues and expenditures will continue to expand.”

According to the letter, there are tremendous expectations and opportunity for the future, including the planning and future development of the 710 Stub, continuing work towards the City Council’s 2030 policy goal of sourcing 100% of local energy from carbon-free sources, awarding a development contract for the property at Villa Street and Lake Avenue for housing and other uses, and preparing for the LA28 Games.

The recommended budget serves as the city’s financial plan for the coming fiscal year. The council will continue the public hearing at each regular meeting through June 15, when officials are expected to close the hearing and adopt the final budget.

City staff said the budget is balanced using roughly $1.6 million in one-time sales tax revenue and $3.8 million in reserves. Revenues are projected to grow modestly, while costs are rising more quickly, reflecting ongoing fiscal pressure.

While the spending plan largely maintains existing service levels, it includes targeted additions such as funding for accessibility improvements to city digital services, continued economic development marketing and expansion of the Fire Department’s paramedic training program.

Officials cautioned that the city faces longer-term financial challenges, including structural deficits driven by rising costs and expiring grant funding. Key concerns include reductions in public health funding, proposed investments in police technology ahead of the 2028 Olympic Games and changes to parking enforcement operations.

The budget will be reviewed in detail throughout May in a series of City Council and committee meetings.

The Legislative Police Committee will conduct budget hearings on May 5 on libraries, City Attorney, City Council offices and the City Clerk’s office.

In a special meeting on May 7, the Housing, Homelessness & Planning Committee will hold hearings for the Housing, Planning and Rent Stabilization departments.

The Rose Bowl Operating Company and Human Resources Department will be heard on May 11 at a Finance Committee meeting, before the City Council conducts a public hearing on taxes, fees and charges.

On May 12, the Municipal Services Committee will hold budget hearings on Public Works and Transportation.

The Finance Department and the City Manager’s Office will come before the Finance Committee on May 18. That same day, the City Council will vote to adopt taxes, fees and charges.

The Economic Development and Technology Committee (EDTECH) will hold hearings on the Pasadena Center Operating Company, the Pasadena Community Access Corporation (PCAC), Information Technology and economic development on May 19.

Budget hearings for Fire and Public Health will be heard on May 20 at the Public Safety Committee. The Municipal Services Committee will hold hearings on the city’s utility on May 26 when Water and Power presents its budget.

Budget hearings in May will end on May 28 at the Public Safety Committee when budget hearings are held for the Police Department and Parks, Recreation and Community Services.

Following the committee review process, the City Council is scheduled in June to adopt the General Fee Schedule and hold final budget discussions on June 8.

The City Council is scheduled to vote to close the public hearing and adopt the FY 2027 operating budget and Gann Appropriations Limit on June 15.

The extended schedule is intended to provide transparency and allow for detailed review of departmental budgets before final approval.

Copies of the proposed budget are available for public review at the City Clerk’s Office, local libraries and online.