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The Pasadena City Council successfully conducted the first reading of a local ordinance amending language in the Municipal Code concerning the annual transfer of funds from the Light & Power Fund to the General Fund.
The change reflects a March 2024 amendment to the City Charter approved by voters.
Measure R, proposed clerical corrections to outdated language and citations in the City Charter and an update to the accounting method for transfers from the Power Fund to the General Fund, passed with 86.83% of the vote.
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.”
The ordinance removes references to “net income” from the Municipal Code because the 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.
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