The Pasadena City Council on Monday will conduct the second reading of an ordinance amending language in the Municipal Code concerning the annual transfer of funds from the Light & Power Fund to the General Fund.
A second reading is a crucial step in which the Council gives final consideration to and potentially adopts a new local law or regulation after initial public review.
The change reflects a March 2024 voter-approved amendment to the City Charter.
Nearly 87% of the voters approved Measure R, which establishes clerical corrections to outdated language and citations in the City Charter and an update to the accounting method for transfers from the Power Fund to the General Fund.
The Charter serves as the City’s constitution.
The ordinance removes references to “net income” from the Municipal Code because the City Charter amendment eliminated the need to calculate net income for the annual transfer, as it is no longer used in Generally Accepted Accounting Practices (GAAP).
The Finance Department will implement the amended ordinance, which was directed by the City Council on May 6.
The City Charter will be amended to read:
“The maximum aggregate amount available for transfer pursuant to Section 1408 of the City Charter from the light and power fund to the general fund shall be calculated by multiplying the annual gross electric retail income by 12 percent. The City Council shall transfer such amount by resolution transfer. Notwithstanding the foregoing, the City Council may transfer an amount other than 12 percent by resolution if it determines that it would not be detrimental to the functioning and administration of the power utility during the budget year under consideration.”
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