Pasadena earmarks $2 million from debt reserves for year‑round shelter; council presses for longer budget review

PASADENA, Calif. — As the city closes in on next week’s budget adoption, Pasadena officials on June 8 told the City Council they have identified $2 million of one‑time debt‑service reserve capacity that can be set aside to begin funding a year‑round shelter, and said other one‑time sources could add more funds in coming months.

City Manager Matt Hawksworth told the council that staff found $1.78 million of debt‑service reserves that can safely be released and recommended combining that with planned savings to reserve about $2 million as a first step toward a shelter. He said additional debt reserve work could free roughly $3 million more in the near term.

Hawksworth framed the action as a first step: "My recommendation to the council is that we would set aside or reserve that $2 million as our first step in funding a year‑round shelter," he told members. Staff also committed to produce a work plan with population served, size, site selection considerations and a target opening timeframe so the council can evaluate options in coming meetings.

Budget presentations earlier in the evening laid out a range of possible revenue options — from local parcel or transfer taxes to vacancy levies, benefit districts, paid parking and business tax reforms — and cautioned that each carries tradeoffs, legal constraints and political risk. Finance staff told the council that each quarter‑point of local sales tax in Pasadena would generate roughly $11 million annually, and that benefit districts or parcel taxes could be structured to yield millions per year depending on voter support.

Council members broadly supported the principle of beginning to fund a shelter but urged caution about spending every available one‑time dollar in the current fiscal adoption. Councilmember Cole said he favored keeping a core budget now and saving some one‑time funds for decisions in July and August. Several members asked staff to return with specific cost‑benefit estimates and to run feasibility studies for revenue measures if the council wants to place a measure on the November ballot (staff noted the statutory ballot deadlines would require decisions in July).

Separately, fire department officials reported two remaining seismically vulnerable fire stations (Station 33 on North Lake and Station 37 on East Foothill) that require complete reconstruction as part of a 10‑year fire capital plan; Chief Chad Augustine told the council rebuilding will be a "tens of millions of dollars" project and recommended a multiyear funding strategy that could include full‑cost recovery fees and voter‑approved measures.

What happens next: Council continued the operating‑budget public hearing to June 15 for final adoption, directed staff to return with a clear shelter work plan and asked Finance Committee to vet revenue options and procurement reforms recommended by staff.