Pasadena’s Measure P Seems Headed for Easy Passage

[Updated 10:53 p.m.]

Pasadena’s Measure P, seeking voter approval for the continued transfer of some funds from the city-owned power and water utility to the city’s general fund – and, according to city officials, a critical element in maintaining a wide range of city services — appeared headed for passage by a landslide margin Tuesday night.

As of 10:30 p.m., 2 ½ hours after the polls closed, the measure had received 41,704 “yes” votes (84.59 percent) and 7,600 “no” votes (15.41 percent),” according to the website of the L.A. County Registrar-Recorder/County Clerk. Real-time numbers can be found at https://results.lavote.net/text-results/4193, and Pasadena Now will continue to track the voting as well.

To officially pass, the measure needs the OK from 50 percent of the voters plus one.

“Pasadena voters have once again said that there should be a dividend paid by the power fund to support essential city services,’’ City Manager Steve Mermell said Tuesday night as the numbers rolled in. “During these difficult times, our residents and businesses rely on the city to be there for them to provide services that benefit them on a daily basis.’’

The City Council in July unanimously approved placing Measure P on the ballot. It was the council’s reply to a class-action lawsuit alleging that Pasadena Water and Power has overcharged customers to guarantee there is money available to transfer to the general fund.

In Fiscal Year 2020, that total was around $17.3 million. It’s ticketed to be $18 million next fiscal year.

Council members and other city officials say the continued influx of that money from the utility to the general fund is vital to the city maintaining current levels of service for 911 response, first responders, public health programs, senior services, homelessness services, housing programs and street repair.

Since 1934, Pasadena’s general municipal budget has received an annual influx of funds from the city-owned power utility. Mayor Terry Tornek has called the influx “a well-established, basic pillar of our whole financial structure.’’

Prior to Tuesday, city voters had been asked seven times since 1934 to approve such fund transfers, and have voted yes all seven times. It looks like Tuesday makes in 8-for-8.

The class-action lawsuit alleges that Pasadena Water and Power has overcharged customers to guarantee there is money available to transfer to the general fund, Vincent Slavens, a plaintiff’s attorney for the San Diego law firm of Benink & Slavens, told Pasadena Now in July.

Slavens said the transfer money is “baked into the cake” of the rates — but shouldn’t be, because it exceeds the amount necessary to provide the service. That amounts to a tax, which needs voter approval, he said.

Tuesday, it appeared the approval was delivered.

The measure was formally called the “Pasadena City Services Protection Measure.”

On the ballot, it read: “Shall the measure maintaining 911 response, fire, paramedic, public health, senior and homeless services, street repairs, and other services by amending the City Charter to continue collecting in electric rates and maintain the longstanding transfer, limited to 12% gross revenue, providing $18,000,000 annually to Pasadena’s General Fund that does not increase taxes or utility rates until ended by voters, requiring financial audits with all funds locally controlled benefitting Pasadena residents, be adopted?’’

According to a city staff report, the amount of money transferred annually from the light and power fund to the general fund has varied from year to year, depending on the utility’s net income after expenses and the amount the council determines is not detrimental to the proper functioning and administration of the utility during the budget year under consideration, according to the staff report.

Over the last 10 years, the transfer to the general fund has been between 8 and 10 percent, including 10 percent for the last six fiscal years.

The transfer amount has been previously capped at 16 percent of gross revenues of the utility – but Measure P reduces that cap to 12 percent.

As Mermell and council members have said, Measure P does not increase fees, raise taxes or create a new tax.

 

“Measure P is about protecting the longstanding utility transfer to the general fund that serves Pasadena residents and businesses,” said Pasadena Public Information Officer Lisa Derderian. “Since 1934, the Pasadena Charter calling for the annual transfer has previously gone to and passed by a majority of voters a combined seven times.”

According to the city staff report, “the city is vigorously defending the allegations’’ in the lawsuit.