City Manager Proposing $1.1 Billion Budget

In the annual transmittal letter to the Mayor and City Council, City Manager Miguel Márquez is recommending a $1.147 billion budget.

That is slightly down from last year’s $1.2 billion budget.

“I hereby transmit the Recommended Fiscal Year 2025 (FY 2025) Budget for the City of Pasadena,” Márquez wrote. “The Budget, both Operating and Capital, make possible the many services and amenities provided by the City, which contribute to the high standard of living in Pasadena. The City provides a wide variety of services and programs for virtually every age and lifestyle either directly or through partnerships with local nonprofits and others.”

As in recent years, the City’s utility, Pasadena Water and Power has the highest departmental budget at $345,312,250, followed by the Police Department with a $111,078,762 budget. The Public Works Department has a $93,537,291 recommended budget. The City’s Fire Department has a $69,274,048 budget and the Housing Department will receive $46,447,327.

The City will open a public hearing on the budget Monday night and the hearing will be continued until the budget is approved by the City Council.

Individual committees will conduct budget hearings.

In Pasadena, the budget process, a collaborative and transparent effort that involves the City Manager, department heads, Councilmembers, and the public, began in the summer, when the City Manager and department heads began developing the budget based on input from various departments and stakeholders.

According to the letter, the budget was developed with the expectation that the demand for programs, services, and events will continue regardless of the economy and a recognition that slower revenue growth and the overall economy are realities.

“Interest rates are believed to be at the top for this economic cycle; however, inflation has been stubborn and slower than anticipated in its decline, resulting in a belief that a reduction in interest rates will take longer than initially expected.” According to the letter, revenue growth from the City’s two largest General Fund sources, property tax and sales tax, has significantly slowed in comparison.

“The City has thrived in many areas and is fortunate not to be in the cost reduction mode facing so many other local governments,” Márquez wrote. “But we 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. The FY 2025 Recommended Operating Budget furthers the City’s mission to deliver exemplary municipal services responsive to our entire community consistent with our history, culture, and unique character.”