Maintaining fiscal stability is a key City Council goal. Thanks to some shared sacrifice and difficult decisions, Pasadena remains on track to balance its budget by fiscal year 2014.
Over the past several years, city leaders have been working hard to bring expenses in line with revenues. These efforts have focused on improved efficiencies and reducing operating costs while minimizing the effect on services to the community. Since mid-2009 the city has cut roughly 300 positions, and through negotiations with labor groups, city employees have forgone scheduled salary increases and many are paying a greater share of pension contributions.
Important revenue sources such as sales taxes are still below 2003 levels and property tax revenues remain flat. (Residents are reminded that shopping at businesses within the city keeps tax dollars in Pasadena.) The recent dissolution of redevelopment agencies will significantly reduce the city’s ability to reinvest in critical infrastructure. And despite an estimated $17 million in damage and clean-up costs from December’s hurricane-force windstorm, Pasadena has been notified that neither the state nor federal government will be providing any financial relief.
This spring the city manager will present the recommended operating budget for fiscal year 2013 to the City Council. The budget will include additional steps to ensure the city’s financial stability. A series of public hearings will be held to review the recommended budget.
For more information visit the city’s website at www.cityofpasadena.net/budget.