City’s Proposed 2023-2024 Budget Soars Past $1 Billion

The City will put forth a proposed $1.2 billion operating budget for fiscal year 2023-2024, according to a transmittal letter on the City’s website. 

This marks the first time the City’s budget has surpassed the $1 billion mark.

Last year’s budget was $955.7 million.

The increase in the overall budget, which includes both operating and capital improvement budget appropriations largely due to $181.4 million of Los Angeles County Metropolitan Transportation Authority Measure R funding awarded in February 2023 for mobility improvement projects. 

Additionally, the water and power utilities fund has increased by $40.52 million, primarily due to the cost of procuring and producing both electricity and water. 

The City’s refuse fund has also increased by $4.5 million, largely due to increased disposal costs and the procurement of refuse vehicles. 

“Under the leadership of the Mayor and City Council and with prudent financial management, the City of Pasadena has successfully addressed the unique challenges it has faced in the past, with no reduction in the quality and level of services provided to the community,” wrote City Manager Miguel Márquez. “The City has thrived in many areas coming out of the pandemic and will need to continue being resourceful and creative in continuing to invest in current services, operations, and infrastructure, while adapting to the future needs of the community.”

Márquez also said the FY 2024 Recommended Operating Budget furthers the City’s mission to deliver exemplary municipal services responsive to “our entire community and consistent with our history, culture, and unique character.” 

The city’s General Fund increased to $323.2 million up from $295.9.

The City’s General Fund is the primary operating fund of the City. The fund is supported by a variety of revenue sources including taxes, license fees, permit fees, charges for services, fines, forfeitures, investment earnings, rental income and a variety of other miscellaneous sources, according to the City’s website. 

The City is scheduled to begin public hearings on the budget on Monday.

The City Charter requires that on or before the third Monday in May the City Manager shall submit to the City Council an annual operating budget for the succeeding fiscal year.

“I hereby transmit the Recommended Fiscal Year 2024 (FY 2024) Budget for the City of Pasadena. 

The City’s Budget allows the City to provide services and amenities to its residents, according to the letter, which also said the recommended budget was developed with an expectation that the demand for programs, services, and events will continue to increase and some revenues continue to show solid growth due to both inflation and a relatively healthy local economy. 

“There is a recognition that the pace of post-pandemic revenue growth is slowing and will return to a more normal economic cycle,” the letter said.

Other fund increases include $2.38 million in rental assistance funding, $3.78 million in Public Health programming funds, and $1.69 million in transportation special revenues.  

The roughly $27 million in estimated growth in the General Fund is larger than normal and reflects increases in some key areas. 

Property tax revenue has increased almost $10.0 million for FY 2024, bolstered by a $2.8 million increase in Successor Agency tax revenue from the payoff of a pass-through agreement related to the dissolution of the City’s former redevelopment commission. 

According to the letter, additional growth was driven by several factors, including new development projects that were recorded on the tax rolls. Sales tax also realized larger-than-normal growth of approximately $4.1 million from the robust economic rebound of our local businesses and from increased revenue from the county pool. 

Lastly, charges for services increased due to increased call volume from the fire department for emergency medical services (EMS). 

Altogether this revenue growth provides the capacity to support rising costs across a wide range of expenses – personnel, insurance, and contracts with service providers.

The City will not be covering any Rose Bowl debt according to the letter.

“It was anticipated the RBOC would need ongoing financial assistance to cover a portion of their debt service,” the letter reads. “Fortunately, as a result of better-than-expected actual revenues and expenses during the last few years, the receipt of a $10.0 million Shuttered Venue grant, and an improved five-year forecast, the RBOC does not require an annual contribution from the City’s General Fund in FY 2024 or beyond.”