Amended Special Joint Session with the Finance Commission

Page

/

3

Loading…


{"id": "", "title": "2298711c6b3b4be8229f71e86161c6b10.pdf", "mimeType": "application\\/pdf"}

[http://www.spectrumstream.com/streaming/south_pasadena/live.cfm](http://www.spectrumstream.com/streaming/south_pasadena/live.cfm)[mailto:ccpubliccomment@southpasadenaca.gov](mailto:ccpubliccomment@southpasadenaca.gov)[https://us06web.zoom.us/j/82599992830](https://us06web.zoom.us/j/82599992830)[http://www.spectrumstream.com/streaming/south_pasadena/live.cfm](http://www.spectrumstream.com/streaming/south_pasadena/live.cfm)[https://zoom.us/join](https://zoom.us/join)

## Page 1 of 3

CITY OF SOUTH PASADENA

CITY COUNCIL AND THE FINANCE COMMISSION

AMENDED AGENDA

SPECIAL JOINT MEETING OF THE CITY COUNCIL

WEDNESDAY, JANUARY 21, 2026, AT 6:15 PM

AMEDEE O. "DICK" RICHARDS JR. COUNCIL CHAMBERS

1424 MISSION STREET, SOUTH PASADENA, CALIFORNIA 91030

AND AT A TELECONFERENCE LOCATION LOCATED AT

SUITES CAPI PETRARCA 118 (LOBBY) POLANCO, POLANCO V SECC, MIGUEL

HIDALGO, 11570 CIUDAD DE MEXICO, CDMX, MEXICO AT 8:15 PM (CST)

NOTICE ON PUBLIC PARTICIPATION & ACCESSIBILITY

The South Pasadena City Council Meeting will be conducted in-person from the Amedee O. “Dick”

Richards, Jr. Council Chambers, located at 1424 Mission Street, South Pasadena, CA 91030.

Public participation may be made as follows:

In-Person – Council Chambers, 1424 Mission Street, South Pasadena, CA 91030

Live Broadcast via the City website –

http://www.spectrumstream.com/streaming/south\_pasadena/live.cfm

Via Zoom – Meeting ID: 825 9999 2830

Written Public Comment – written comment must be submitted by 12:00 p.m. the day of the

meeting by emailing to ccpubliccomment@southpasadenaca.gov

Via Phone–+1-669-900-6833 and entering the Zoom Meeting ID listed above.

Meeting may be viewed at:

1\. Go to the Zoom website, https://zoom.us/join and enter the Zoom Meeting information; or

2\. Click on the following unique Zoom meeting link:

https://us06web.zoom.us/j/82599992830 or

3\. By calling: +1-669-900-6833 and entering the Zoom Meeting ID listed above; and viewing the

meeting via http://www.spectrumstream.com/streaming/south\_pasadena/live.cfm

CALL TO ORDER: Mayor Sheila Rossi

.

ROLL CALL OF CITY

COUNCIL:

Mayor Sheila Rossi

CITY OF SOUTH PASADENA CITY COUNCIL AND THE FINANCE COMMISSION AMENDED AGENDA SPECIAL JOINT MEETING OF THE CITY COUNCIL WEDNESDAY, JANUARY 21, 2026, AT 6:15 PM AMEDEE O. "DICK" RICHARDS JR. COUNCIL CHAMBERS 1424 MISSION STREET, SOUTH PASADENA, CALIFORNIA 91030 AND AT A TELECONFERENCE LOCATION LOCATED AT SUITES CAPI PETRARCA 118 (LOBBY) POLANCO, POLANCO V SECC, MIGUEL HIDALGO, 11570 CIUDAD DE MEXICO, CDMX, MEXICO AT 8:15 PM (CST) NOTICE ON PUBLIC PARTICIPATION & ACCESSIBILITY The South Pasadena City Council Meeting will be conducted in-person from the Amedee O. “Dick” Richards, Jr. Council Chambers, located at 1424 Mission Street, South Pasadena, CA 91030. Public participation may be made as follows: In-Person – Council Chambers, 1424 Mission Street, South Pasadena, CA 91030 Live Broadcast via the City website – http://www.spectrumstream.com/streaming/south_pasadena/live.cfm Via Zoom – Meeting ID: 825 9999 2830 Written Public Comment – written comment must be submitted by 12:00 p.m. the day of the meeting by emailing to ccpubliccomment@southpasadenaca.gov Via Phone–+1-669-900-6833 and entering the Zoom Meeting ID listed above. Meeting may be viewed at: 1. Go to the Zoom website, https://zoom.us/join and enter the Zoom Meeting information; or 2. Click on the following unique Zoom meeting link: https://us06web.zoom.us/j/82599992830 or 3. By calling: +1-669-900-6833 and entering the Zoom Meeting ID listed above; and viewing the meeting via http://www.spectrumstream.com/streaming/south_pasadena/live.cfm CALL TO ORDER: Mayor Sheila Rossi . ROLL CALL OF CITY COUNCIL: Mayor Sheila Rossi Mayor Pro Tem Omari Ferguson Councilmember Michael A. Cacciotti Councilmember Jon Primuth 1

1. PUBLIC COMMENT Public Comment will be limited to 3 minutes per speaker for the agendized items only. 2. CONSIDERATION TO APPROVE UPDATED FINANCIAL POLICIES AND PROCEDURES MANUAL FOR FY 2025-2026 3. CONSIDERATION TO RECEIVE AND FILE THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR FISCAL YEAR ENDED JUNE 30, 2025 Councilmember Janet Braun ROLL CALL OF FINANCE COMMISSION: Chair Nevin Stanton-Trehan Vice Chair Commissioner Commissioner Cynthia Quade Peter Giulioni, Jr. Y-Le Ho Commissioner Renee Rubin PUBLIC COMMENT CONSENT CALENDAR OPPORTUNITY TO COMMENT ON CONSENT CALENDAR Items listed under the Consent Calendar are considered by the City Manager to be routine in nature and will be enacted by one motion unless a public comment has been received or Councilmember requests otherwise, in which case the item will be removed for separate consideration. Any motion relating to an ordinance or a resolution shall also waive the reading of the ordinance or resolution and include its introduction or adoption as appropriate. Recommendation It is recommended that the City Council adopt the City's Financial Policies and Procedures Manual for 2026 as presented. ACTION/DISCUSSION Recommendation It is recommended that the City Council and Finance Commission receive and file the annual audit reports for the year ended June 30, 2025. ADJOURNMENT FOR YOUR INFORMATION FUTURE CITY COUNCIL MEETINGS February 4, 2026 Regular City Council Meeting 7:00 P.M. February 18, 2026 Regular City Council Meeting 7:00 P.M. 2

March 4, 2026 Regular City Council Meeting 7:00 P.M. PUBLIC ACCESS TO AGENDA DOCUMENTS AND BROADCASTING OF MEETINGS City Council meeting agenda packets, any agenda related documents, and additional documents are available online for public viewing on the City’s website: https://www.southpasadenaca.gov/Your-Government/Your-City-Council/City-Council-Agendas Regular meetings are live streamed via the internet at: http://www.spectrumstream.com/streaming/south_pasadena/live.cfm AGENDA NOTIFICATION SUBSCRIPTION If you wish to receive an agenda email notification please contact the City Clerk’s Division via email at CityClerk@southpasadenaca.gov or call (626) 403-7230. ACCOMMODATIONS The City of South Pasadena wishes to make all of its public meetings accessible to the public. If special assistance is needed to participate in this meeting, please contact the City Clerk's Division at (626) 403-7230 or cityclerk@southpasadenaca.gov. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Notification at least 48 hours prior to the meeting will assist staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting (28 CFR 35.102-35.104 ADA Title II). CERTIFICATION OF POSTING I declare under penalty of perjury that I posted this notice of agenda for the meeting to be held on January 21, 2026, on the bulletin board in the courtyard of City Hall located at 1414 Mission Street, South Pasadena, CA 91030, and on the City, website as required by law, on the date listed below. 01/16/2026 /S/ Date Aimee Gibbs, Executive Assistant 3

City Council and the Finance Commission Agenda Report ITEM NO. 2 DATE: January 21, 2026 FROM: Todd Hileman, City Manager PREPARED BY: Nick Kimball, Assistant City Manager/Chief Financial Officer William Castrillon, Budget and Purchasing Manager SUBJECT: CONSIDERATION TO APPROVE UPDATED FINANCIAL POLICIES AND PROCEDURES MANUAL FOR FY 2025-2026 Recommendation It is recommended that the City Council adopt the City's Financial Policies and Procedures Manual for 2026 as presented. Executive Summary The Finance Policies and Procedures Manual serves as the City’s comprehensive framework for sound fiscal management, internal control, and accountability. It consolidates policies governing purchasing, accounting, payroll, investments, and other financial operations to ensure compliance with state and federal law, generally accepted accounting principles (GAAP), and Government Finance Officers Association (GFOA) best practices. Originally approved in 2022, the manual establishes clear roles and responsibilities for all City departments and formalizes the procedures necessary to protect public resources and ensure transparency. Staff prepared a 2026 updated manual and presented it to the Finance Commission on November 20, 2025, for their review and recommendations. Their recommendations have been incorporated into the manual for City Council consideration. The manual includes current best practices, audit recommendations, and new technology workflows. This report provides a high-level summary of the manual’s key sections. Background The City Council adopted the Finance Policies and Procedures Manual in October 2022 following review by the Finance Commission. The manual was developed to standardize financial practices, clarify departmental responsibilities, and establish consistent internal controls across all City operations. On November 20, 2025, the Finance Commission reviewed the proposed updates to the Procedure Manual for 2026 and provided feedback. 4

Analysis The Financial Policies and Procedures Manual establishes a comprehensive framework to guide the City’s financial decision-making, internal controls, and day-to-day fiscal operations. Its purpose is to promote sound financial stewardship, transparency, consistency, and accountability in the management of public resources, while ensuring compliance with applicable laws, regulations, and best practices in municipal finance. By clearly defining roles, standards, and procedures, the manual supports long-term financial sustainability, enhances audit readiness, mitigates fiscal risk, and provides City staff and elected officials with a shared foundation for responsible budgeting, accounting, reporting, and financial oversight. The manual should be reviewed annually, or more frequently as needed, based on changes to law, technology, or City operations. The updated 2026 manual strengthens internal control language, improves procurement transparency, and aligns local policy with modern GFOA and State Controller’s Office standards. The Finance Policies and Procedures Manual consists of eleven (11) major sections, each addressing a core area of financial management. A summary of each section is provided below. 1. Introduction The Finance Department’s Policies and Procedures Manual is intended to provide city employees with a comprehensive tool for complying with the City’s financial policies and procedures. It establishes the purpose, authority, and guiding principles for the City’s financial management framework, including fiscal stewardship, transparency, and internal control responsibilities based on the Committee of Sponsoring Organizations (OSO) internal control framework. 2. Finance Staff Positions Defines Finance Department structure, roles, and qualifications; clarifies the Assistant City Manager / Chief Financial Officer’s purchasing authority and the Treasurer’s independent oversight of investments. In FY 2024/2025, the Finance Department underwent a major organizational change. Various positions were eliminated and others were added, changing the roles and responsibilities in Finance. Proposed Updates: Please see Table 1. Major Responsibilities and Key Duties for updated positions and roles. 3. Purchasing Outlines policies for procurement of goods, services, and public works projects, including bidding thresholds (City Manager authority < $30,000; City Council authority > $30,000), ethical standards, and local vendor preference. Promotes fairness, competition, and fiscal accountability. This section includes provisions for the appropriate use of non-competitive (sole/single source), cooperative purchasing (piggybacking), environmentally preferable purchasing, emergency procurements, and disposal of surplus assets. Proposed Updates: Eliminate the Competitive Bidding Solution (E-Procurement) section. Currently, the City uses the E-procurement software, Planet Bids, to administer the competitive bidding process. 5

Table 2 - Competitive Bidding and Contract Award Thresholds, Public Works Projects Category was updated to reflect the current award authority in accordance with the values and methods pursuant to CUPCCAA, Public Contract Code sections 22000 et seq. and Article XIII commencing with section 2.99-34. The bid opening procedure, which references physical bids and in-person bid opening, is outdated. Currently, no physical bids are accepted, and in-person bid openings are not required. Bid submissions are done electronically through the Planet Bids software. Language incorporating the use of Planet Bids or E-procurement software for electronic bid submission is included. 4. Accounts Payable Details payment processing requirements, approval workflows, and documentation standards (purchase orders, invoices, direct payments). Identifies authorized approvers and reinforces segregation of duties, timely disbursement, and City Council warrant approval. Proposed Updates: Form 1099 issued to vendors compensated more than $600 in a calendar year will increase to $2,000 in a calendar year 2026. Under the Voided Checks and Stop Payment Requests, all uncashed checks greater than six months old will be investigated to determine if a new check is to be issued or escheat the funds in compliance with State of California regulations. 5. Utility Billing Operations Describes billing, collections, and customer service procedures for water and sewer utilities, including oversight of the City’s contracted billing provider and dispute resolution protocols. 6. Accounts Receivable and Revenue Collections Sets standards for receiving, recording, and safeguarding City revenues. Establishes cash- handling controls, daily deposit procedures, and reconciliation requirements. 7. Payroll Establishes payroll processing standards, timekeeping, and benefit administration procedures. Ensures accurate payment, tax compliance, and secure employee recordkeeping. The administration of payroll rests with the Finance Department, while the administration of benefits rests with the Human Resource Department. 8. Fixed Assets Defines capitalization thresholds (i.e. $5,000 or more for non-infrastructure assets and $25,000 for infrastructure assets), asset tracking, and disposal procedures to ensure proper accounting and control of City-owned assets. Proposed Updates: The City-owned capital asset amount has been updated to reflect the current amount as of June 30, 2024. In Table 3. City Owned Capital Assets, the capital asset categories were updated to reflect current amounts as of June 30, 2024. 9. Investments and Debt Management Provides policy guidance on investment objectives—safety, liquidity, and yield—and outlines 6

debt issuance and post-issuance compliance responsibilities. This section is meant to be followed in conjunction with the annual Investment Policy adopted by the City Council. Proposed Updates: Remove from Types of Debt, Tax Allocation Bonds. The City finished paying the TABS 2000 bond debt in FY 2024/2025. The dissolution of the RDAs in 2012 has ended this type of debt from being issued by California cities and counties. 10. Governmental Accounting and General Ledger Maintenance Describes the City’s accounting framework, chart of accounts, reconciliation process, and financial reporting procedures to maintain GAAP compliance. Proposed Updates: The Midyear and Quarterly Financial Reporting will be changed to Mid- Year and Monthly Financial reporting to reflect the City Council’s desire to have a monthly report. 11. Acknowledgment Form Requires employees and departmental liaisons to acknowledge receipt and understanding of financial policies, ensuring accountability and awareness. Fiscal Impact There is no direct fiscal impact associated with this report. Implementation of updated financial policies will enhance transparency, strengthen internal controls, and support long-term financial sustainability. Attachment: Attachment No. 1 - Draft 2026 Finance Policy Procedures Manual (Redline) Attachment No. 2 - Draft 2026 Finance Policies and Procedures Manual 7

I . City Of South Pasadena Finance Policy and Procedures Manual Draft 11/ 20/2025 Reviewed 01 / 09/2026 For ma tted: Font: 9 pt Fo rmatte d: Font: 9 pt, Not Bold For ma tte d: Font: 9 pt Fo rma tte d: Font: 9 pt, Not Bold a e of 3Attachment No. 1 8

Finance Poli cies and Proced ures Manual Table of Contents January. 2026MGN+l4, ¥eAA Introduction.. •........•••.....•...................•..........•........•...........•.... ••. ..•.•• .. •..•..•.......•..•• .. •••..•...•..... 1* Purchasing ........................................................................................... ............................... . 22g Accounts Payable ..........................................•...•........•.............................•...... .....•..•.......... 3~ Utility Billing Operations ............................................ .. ........................ ....... .........•... ..... •. ..• 4:R9 Accounts Receivab le and Revenue Collections •..•....•...........•......•...... ....•.•....•....•........ .... .. ... 4~ Payroll ....•. .•• .. •• .• •• •••••• •• •.•• ••. .•.••.•.•. •••.••••.•..•..•••...............•.. .•............................................... 51.le Fix Assets ........•..•........... ......•..•..........................•..••....•..........•........................................... 5~ Investments and Debt Management .. .................•...............................•... ............................ 6~ Governmenta l Accounting and General Led ger Maintenance ............ .. ..•••......••.•.•..•.•.•........ 739+ Acknowledgement Form ..................................................... .... ............... ............................ 81Q 9

Finance Polici es and Procedures Manual Introduction I. Overview January. 2026MGN+M, ¥eAA The City of South Pasadena Finance Department's Policies and Procedures Manual (manual) is designed to provide guidance to fil!_stakeholders involved in the City's financial processes and transactions. Its purpose is to ensure that assets are safeguarded, transactions are conducted in accordance with established laws, policies and best practices, and duties are appropriately segregated. The manual also seeks to ensure that financial statements are prepared in conformity with generally accepted go¥ernment accounting principles (GAA P) , and that finances are managed with responsible stewardship. This manual is also intended to formalize accounting policies and selected procedures for the accounting staff and to document internal controls. In approving the policies associated within this manual, the City Council establishes the authorities, responsibilities, and accountability requirements of those participating in t he operations of South Pasadena City government to: • Set forth principles for sound fiscal stewardship, • Maintain appropriate financial capacity for present and future levels of service, • Ensure the legal use of financial resources through an effective system of internal controls, and • Provide financial transparency to the public. The City of South Pasadena is accountable to its residents for the prudent use of public dollars. Municipal financial resources must be wisely used to ensure adequate funding for the services, public facilities, and infrastructure necessary to meet the community's present and future needs. These policies safeguard the fiscal stability required to achieve the City's goals and objectives. Although the goal is to provide employees with a comprehensive reference tool for complying with the City's financial policies and procedures, th is document is meant to augment, not supersede South Pasadena's Municipal Code requirements or state and federal laws that may be referenced herein. Any such references should be reviewed in conjunction with the manual. The manual is intended to be easily read and provide useful, up -to-date information on a broad range of financial topics. It has been prepared electronically in a PDF format and placed on the City's Intranet for access and to accommodate changes that will occur over time. In the absence of policies herein not being adopted by ordinance, the manual shall have the force and effect of official policy of the City. This manual shall serve as the basis, along with City Council action in the future, for codified ordinances to implement purchasing policies. 10

Finance Policies and Procedu res Manual January 2026MGN+lol, ¥I.AA In the event of a conflict between this manual and a codified or uncodified ordinance, the ordinance shall prevail regardless of date of adoption. In the event of a conflict between this manual and a resolution of the City Council, the more recent document shall prevai l. Organization of the Manual This manual contains the following sections: • Finance Staff Positions, • Purchasing, • Accounts Payable, • Utility Billing Operations, • Accounts Receivable, • Payroll, • Fixed Assets, • Investments and Debt Management, and • Governmental Accounting and General Ledger Maintenance. Each section begins with an overview that provides context, a general description of the financial topic, and an objective statement to describe the purpose of the policy and associated procedures. This is followed by a list of the Finance Department classifications functionally responsible for the policies and procedures in the section. Acknowledgement of Manual Content Upon recommendation from the Finance Commission, the contents of this manual were approved as the official policy of the City of South Pasadena by the City Council ifi-.on fJNSERT DATEJune 2022]. Routine changes and updates to this manual will be made on _.-{ Formatted: Font: Bo ld ~-------------~an annual basis in July or on an as-needed basis upon recommendation from the ~ Qifestef:Assistant City Manager I -Chief Financial Officer {CFO) and after review from the Finance Commission and approval by the City Council. All Finance Department employees and Finance liaisons in each department are bound by the policies contained or referenced herein, and any deviation from established policy is prohibited. Each applicable employee must read the manual and, if necessary, request clarification of the contents. Each employee must sign a statement of receipt acknowledging that they have received a copy or have been provided access to the manual and understand they are responsible for reading and becoming familiar with the contents of it. This document is not intended to replace guidance provided by GAAP or by other external sources, such as procedures manuals related • to the City's electronic financial management system. Please contact the Finance Department with any suggestions for improvement to the manual or any clarifications that may be needed. 11

Finance Policies and Procedures Manual II. Internal Control Po li cies ~ 2026MGN+M, ¥eAR The City Council and City management are responsible for ensuring and maintaining a system of internal control to safeguard assets against loss, ensure the accuracy and reliability of the accounting data and financial information, promote operational efficiency, and encourage adherence to prescribed financial procedures. The City's system of internal control is based on the framework designed by the Committee of Sponsoring Organizations' (COSO) Internal Control - Integrated Framework (2013). This framework is based on the following five components: 1. Control Environment, 2. Ris k Assessment, 3. Control Activities, 4. Information and Communication, and 5. Monitoring. While each component includes a set of guiding principles, it is beyond the scope of this manual to incorporate and explain all control elements. However, included below is an adaptation of best practice guidance provided by the Government Finance Officers Association (GFOA) based on the first of the five components, the control of environment. These standards set forth the basis for carrying out internal control: 1. The City Council, City management, and all levels of staff throughout the organization must demonstrate a commitment to the established internal control framework, 2 . The City Council and City management are responsible for overseeing internal control, 3. City management will develop and maintain organizational structures and ensure staff accountability, 4. The City should commit to attracting and retaining competent employees, and 5. The City should hold individuals accountable for their internal control responsibilities. Further details can be found on the GFOA website here: https://www.gfoa.org/materials. Specific internal controls related to accounting procedures discussed in this manual will be described in each relevant section as appropriate. The Assistant City Manager / CFO ~inance Director shall develop additional internal control processes or financial procedures, if warranted, to ensure and maintain a strong internal control function. Any weakness in internal control and accounting procedures shall be addressed immediately by the Assistant City Manager / CFO City Manager or J;inance Director _so a timeline to remedy improvement(s) can be established. 12

Finance Policies and Procedures Manual Investigating Misuse of Funds January. 202 ~¥EAR It is im portant to remember that all fu nds received by the City can only be spent on goods and services that benefit the City. They must be spent in accordance with the budget appropriations approved by the City Council. Under no circumstances can City funds be used for personal goods or services for non-City purposes. whether by use of a purchase order. direct payment. procurement card. or any other means. Supervisors are required to review invoices and credit card purchases before submitting them to the Finance Department for payment. As part of this review. should there be suspicion that City fu n ds were used to purchase personal items for non-City purposes. the Finance Department should be notified immediately for further investigation. Any misuse of City funds could subject an employee to disciplinary action. up to and including te rmination. Ill . Manual Updating and Distribution