City Adopts Ordinance Lowering Maximum Transfer From Light & Power Fund to General Fund

The City Council on Monday approved the second reading and adopted an ordinance amending the Pasadena Municipal Code to reduce the maximum annual transfer from the Light & Power Fund to the General Fund from 16 percent to 12 percent of the electric utility’s gross income.

Every year money is transferred from the Light & Power Fund to the City’s General Fund. 

The ordinance was prompted by a voter-approved measure in November that maintained the longstanding utility transfer to the General Fund. 

The measure also required the city to amend the Municipal Code to clarify that the maximum annual transfer could not exceed 12 percent of the electric utility’s gross income.

The ordinance amends the Municipal Code to reflect the voter-approved measure.

Eighty-five percent of the voters approved Measure P, which maintained the longstanding utility transfer to the General Fund. 

Had the Measure not passed, the elimination of those funds could have resulted in the annual loss of approximately $18 million to the city’s General Fund, which would have had serious implications for the City’s emergency 911 response, fire, paramedic, public health programs for the community, senior services, homelessness and housing programs, street repairs, and other general services and programs.