Pasadena council amends investment policy to bar direct investments in fossil fuels, weapons, private prisons and tobacco after months of debate

The Pasadena City Council on Tuesday voted 5-2 to amend the city's investment policy to expressly state that the city will not invest surplus funds in companies engaged in fossil-fuel production, weapons manufacturing, private prisons or tobacco.

Staff described the change as an affirmation of the council's existing approach. "The city treasurer or any other authorized individual or company managing the investments to the city surplus fund shall not invest in companies that engage in the production of fossil fuel, weapons manufacturing, tobacco or private prisons," staff read to the council, noting that the city currently holds no such direct investments.

The vote capped a months-long process that began in the Legislative Policy Committee and drew intense public comment Tuesday evening. More than 50 speakers filled the chamber and hundreds of written correspondences — including several large chain letters — were posted to the council record before the meeting. Supporters of a stricter ethical-investment policy argued the city should ensure its financial decisions reflect Pasadena's values and called for explicit protections against profiting from war, mass surveillance and genocide. Opponents countered that the amendment could be interpreted as singling out a nation, raise legal risk under state anti-boycott laws and increase civic tensions.

"This is an articulation of an existing policy," Vice Mayor Rivas said during deliberations, urging colleagues to focus on the policy's stated purpose rather than international politics. Several council members echoed that the amendment memorializes what staff had already told the committee and the public: the city does not hold direct investments in the named sectors.

Speakers on both sides addressed the council at length. Jason Moss, executive director of the Jewish Federation of the Greater San Gabriel Valley, told the council his organization had urged adoption of the committee language "exactly as it is" to avoid singling out any nation and to curb rising anti-Semitic incidents in the community. A coalition of residents and faith leaders urging stronger language argued the policy should specifically name and condemn genocidal conduct and include mass-surveillance companies.

Council members pressed staff on legal risks and precedents. In response to questions, staff reviewed applicable sections of the California Public Contract Code and cautioned that measures aimed specifically at a sovereign nation could carry legal and funding risks; the staff memo recommended narrower, company-focused prohibitions.

After a final round of council comments and a roll call, the motion to adopt the amendment passed, with five votes in favor, two opposed and one member absent. Council directions included a recommendation to encourage the city's Fire & Police Pension Board to consider similar language.

What happens next: Council will post the adopted amendment in the investment-policy documents and staff will provide any follow-up guidance requested by council members. The change does not alter holdings immediately, and staff reiterated the city does not currently hold direct investments in the named sectors.

Sources: city staff presentation and public comment at the Pasadena City Council regular meeting.