City Manager’s Office Fiscal Year 2027 Budget Includes Major Risk Management Increase

Pasadena’s Finance/Audit Committee will hold a budget workshop on Monday, May 18, on the City Manager’s Office recommended Fiscal Year 2027 operating budget, which totals $23,140,540 across all funds and reflects a 16.7 percent increase over the Fiscal Year 2026 adopted budget, driven largely by a 46.3 percent jump in Risk Management appropriations.

The presentation provides the Committee with a detailed look at how the City Manager’s Office plans to allocate funds across its five divisions: City Management Administration, Public Affairs, Economic Development, Internal Audit, and Risk Management.

According to the presentation, the recommended budget is distributed across five funds: $9,274,354 in the General Fund, $4,680,956 in the Workers’ Compensation Fund, $4,351,468 in the Workforce Innovation and Opportunity Act Fund, $3,817,762 in the General Liability Fund, and $1,016,000 in the Projects Fund. The General Fund portion alone represents a 3.2 percent increase over the Fiscal Year 2026 adopted General Fund total of $8,988,187.

Risk Management would see the largest divisional increase, rising from $6,007,834 to $8,792,865, a 46.3 percent change. Economic Development would rise 11.2 percent, from $6,429,475 to $7,154,985, while Public Affairs would increase 4.8 percent to $923,261 and Internal Audit would increase 4.8 percent to $620,855. City Management Administration would see a 4.5 percent decrease, falling from $5,918,585 to $5,648,574.

Across the department’s total budget, personnel costs would rise $585,000, or 5.2 percent, including $379,000 in cost-of-living and Memoranda of Understanding-related adjustments and $206,000 in pension, medical and benefits increases. Services and supplies would increase by approximately $2.7 million, or 36 percent, with the department citing increased Career Services to align with grant funding and increased Risk Management appropriations for outside legal services as the primary drivers. The presentation notes that the legal services increase reflects a partial shift from the City Attorney’s Office budget and would be recovered through department charges based on claims history.

The presentation also highlights insurance renewal costs. The total Fiscal Year 2027 insurance projection across policy lines is $11,397,728, a 13 percent increase over the Fiscal Year 2026 total of $10,111,354. Excess General Liability would rise 14 percent to $6,547,000, property coverage 15 percent to $1,977,000, and auto coverage 25 percent to $473,067.

Among proposed Fiscal Year 2027 budget enhancements, the department is seeking $30,500 in General Fund support for contract services related to compliance with new federal Americans with Disabilities Act digital accessibility rules and $60,000 for nationwide media buys for a “Deep Tech” marketing campaign aimed at attracting companies to Pasadena.

The department’s Fiscal Year 2026 accomplishments cited in the presentation include completing the Reconnecting Pasadena 710 Vision Plan process, launching the Commercial Façade and Microenterprise grant programs, serving more than 4,180 individuals through the One Stop Career Centers, supporting 18 departments with media outreach and press conferences, and completing four internal audit reports presented to the Finance/Audit Committee.

The City Manager’s Office Fiscal Year 2027 work plan, as outlined in the presentation, includes continued oversight of master plan efforts for the Reconnecting Communities 710 project, leading citywide efforts to maximize recovery from Eaton Fire-related losses, and coordinating efforts for the City to host the 2028 Olympic and Paralympic Games.

The Finance/Audit Committee is scheduled to meet at 3 p.m. on Monday, May 18, in the Council Chamber, Room S249, at Pasadena City Hall, 100 North Garfield Avenue, in Pasadena. For more information call (626) 744-7311 or visit https://www.cityofpasadena.net/commissions/agendas/.