City of Pasadena
On June 2nd, the Pasadena City Council approved electric rate increases for Distribution and Customer Charges of 2.7% for fiscal year 2014-15, 2.4% for FY 2015-16, 2.2% for FY 2016-17 and an additional 0.7% increase for the public benefits charge. These charges are in addition to anticipated additional costs for electricity of 5.5% for fiscal year 2014-15 and unknown increases (though expected to be in the 3% to 5% range) for additional years. It is estimated that electric rates will increase about 20% over the next three years. While there was some discussion about the Pasadena Chamber's proposal to use windfall revenue that will accrue to the City of Pasadena from additional Utility User Taxes and general fund transfer amounts that will result from the rate increases to offset some of the increases, the City Council approved the staff recommendation to increase rates to commercial and residential customers.
Here is a copy of the Chamber's proposal to mitigate the effects of the rate increases for all Pasadena residents and businesses. Chamber response to PWP Electric rate increase proposal 5-29-14.pdf
On June 9th, the Pasadena City Council hyeard a predevelopment plan review for an amendment to the Fuller Theological Seminary Master Plan. Chamber member Fuller would like to divest itself of the property at Corson and Los Robles as it is no longer necessary to the operation of the college and sell the property to a housing developer who would build housing on the site, including affordable housing units.
On June 16th, the Pasadena City Council approved the City Manager's proposed budget for fiscal year 2014-15. The $675 million balanced budget includes $209.5 million in General Fund expenditures and $72.3 million in Capital Improvement expecnditures. At the meeting, the council also approved an additional $400,000 for the Heritage Square senior housing project as well as increases to the schedule of Taxes, Fees and Charges.
On June 26th, the Pasadena City Council approved the Tourism Business Improvement District assessment for FY 2014-14. This is an assessment against hotel revenues that helps fund marketing and tourism efforts of the Pasadena Convention and Visitors Bureau. The Council also approved a 5% salary increase for members of the Pasadena Firefighters Association for 2014-15 and an additional 2.5% increase for each of the subsequent fiscal years. Members will contribute 6% to their retirement funds for the current fiscal year, raising to 12% in two years.
On July 14th, the Pasadena City Council adopted a measure to require all cats and dogs within Pasadena be spayed or neutered, except in specail cases. The proposal was supported by Chamber member the Pasadena Humane Society and SPCA.
County of Los Angeles
Supervisors Mark Ridley Thomas and Gloria Molina requested formation of a Sheriffs Department Oversight Panel.
Supervisors heard a report by the Sheriff on the status and implementation of Citizens’ Commission on Jail Violence recommendations and report by the CEO and County Counsel on costs relating to the creation of the Office of the Inspector General.
Supervisors heard a $3.5 million proposal would fund public education media outreach campaigns promoting the Nutrition Education Obesity Prevention Program and the Early Childhood Obesity Prevention Initiative.
Girl Scout Troop 353 from the San Gabriel Valley recognized for advancing to the National Finals of the Team America Rocketry Challenge.
State of California
Governor Brown signed a budget that achieves some fiscal milestones:
- For the first time in more than a decade, the fiscal year will begin with a healthy budget reserve—more than $2 billion, including $1.6 billion in the rainy day reserve.
- The budget directs paying down more than $10 billion in state budget-related debt.
- The budget provides for the first payment of a long-term plan to stabilize funding for the State Teachers Retirement System.
US Government
The Congressional Budget Office provided the 2014 Long Term Budget Outlook. You can view a slideshow of the information here.
- SB 935 would have raised the minimum wage in California to $13 per hour in three steps between 2015 and 2017. The Chamber Board opposed the measure as potentially harmful to the economy and very impactful to our members with minimum wage employees. The measure failed in committee in the State Assembly.
- SB 1021 would create split roll tax base for local school bond measures where commercial property could be taxed at a higher rate than residentail property. The Pasadena Chamber has a long-standing opposition to any scheme that would undermine Proposition 13 and tax commercial property at a higher rate than residential property. The measure died in a committe of the Assembly.
- AB 1897 would provide that cleint employers share in teh legal and civil liabilities of labor contractors so that cliens may be responsible for paying wages, benefits, tax withholdings if a contractor fails to pay those costs. The Pasadena Chamber Board opposed the measure that is still working its way through the legislature, though amended slightly.
- AB 1522 which requires all employers to provide sick leave for employees and requiring a significant reporting burden on those employers. The Chamber Board voted to oppose because of the overburdensome paperwork and reporting required by the regulation and penalties imposed for failing to provide the required reporting. The bill passed the Assembly and is being considered by the Senate Appropriations Committee a second time.
- The Chamber Board also supported reauthorization of the Import-Export Bank, extension of the President's authority to enter into trade agreements that would be considered and voted up or down by the U.S. Senate within 90 days.