Pasadena City Services Protection Measure Could Go to Voters

[UPDATED] The City Council is expected to adopt a resolution Monday calling for a general municipal election Tuesday, Nov. 3 for the city’s voters to adopt a Pasadena City Services Protection Measure.

According to a city staff report, the measure is intended to preserve a practice adopted in 1906 where a set percentage of revenues from the City’s Power Fund is transferred to the General Fund to support infrastructure and essential services, including fire, paramedics, public safety and health programs.

Pasadena Water and Power said the practice began when the Municipal Light and Power Department was established, giving Pasadena a locally controlled power plant that would provide necessary electricity for residents and businesses.

Under Section 1404 of the City Charter, all money that PWP receives for providing electrical service is deposited in the Light and Power Fund. Sections 1407 and 1408 of the Charter permit a combined annual transfer to the General Fund of up to 16 percent of PWP’s gross income received during the previous fiscal year, not to exceed its net income.

The General Fund Transfer provides annual funding for maintaining essential services without compromising PWP’s financial health. Of the 16 percent that may be transferred, up to 8 percent may be used for any municipal purpose and the remaining 8 percent is restricted for municipal improvements and bond redemption, the report said.

The amount of money transferred varies year to year depending on PWP’s net income after expenses from the previous fiscal year; and the amount that the City Council determines is not detrimental to the proper functioning and administration of PWP during the budget year under consideration.