City Manager’s Billion-Plus Dollar Budget Plan Prioritizes Community Services, Acknowledges Economic Challenges

On Monday night, City Manager Miguel Márquez will officially present his comprehensive $1,147,518,420 budget proposal for fiscal year 2025, aiming to maintain the city’s high standard of living while navigating the complexities of the current economic landscape. 

The proposed budget, which represents a slight decrease from the previous year’s $1.2 billion, emphasizes the importance of delivering a wide array of services and programs to Pasadena’s diverse community.

In his transmittal letter to the Mayor and City Council, Márquez highlighted the city’s commitment to providing essential amenities and services that cater to the needs of residents across all age groups and lifestyles. 

“The City of Pasadena takes great pride in offering a robust range of programs and initiatives, either directly or through strategic partnerships with local organizations,” he wrote.

The proposed budget allocates significant resources to key departments crucial for maintaining the city’s infrastructure and public safety.

Pasadena Water and Power, the city’s utility provider, tops the list with a departmental budget of $345,312,250. The Police Department follows closely with a proposed budget of $111,078,762, reflecting the city’s commitment to ensuring the safety and security of its residents.

Additionally, the Public Works Department, responsible for maintaining the city’s infrastructure, has been allocated a recommended budget of $93,537,291. The Fire Department and Housing Department are set to receive $69,274,048 and $46,447,327, respectively.

The budget proposal includes funding for 1,080.27 full-time equivalent (FTE) positions in the General Fund and 2,403.38 FTEs across all Funds, as outlined in the Agenda Report.

To ensure transparency and public involvement, the City Council will hold a public hearing on the budget proposal on Monday evening. The hearing will remain open until the final budget is approved by the Council. 

Furthermore, individual committees will hold separate budget hearings to thoroughly examine and discuss the proposed allocations. 

The budget presentation schedule begins on May 6 and concludes on May 28. The citywide operating budget is scheduled for adoption on June 10, 2024.

Márquez emphasized that the budget development process, which began during the summer months of 2023, has been a collaborative effort involving Department heads, Councilmembers, and the public. 

“We have taken into account the input and insights provided by various stakeholders to create a budget that effectively addresses the needs and priorities of our community,” he explained.

The budget proposal also takes into consideration the current economic climate, which is characterized by slower revenue growth and persistent inflation. 

“While interest rates are believed to have reached their peak, the slower-than-anticipated decline in inflation suggests that a reduction in interest rates may take longer than initially expected,” Márquez noted. 

The City Manager acknowledged that revenue growth from property taxes and sales taxes, the two primary sources of revenue for the General Fund, has experienced a significant slowdown compared to previous years.

Despite these economic challenges, Márquez expressed optimism about Pasadena’s resilience and ability to adapt. 

“Our city has demonstrated remarkable strength in many areas and is fortunate to not be facing the cost-reduction pressures that many other local governments are currently grappling with,” he wrote.

The City Manager emphasized the importance of continuing to be resourceful and creative in investing in existing services, operations, and infrastructure while proactively addressing the community’s evolving needs.

Copies of the FY 2025 Recommended Operating Budget are available for public review at the City Clerk’s Office and the San Rafael Branch and Hastings Branch libraries, as well as on the City’s website.