In the 2026 State of the City address, Mayor Victor Gordo presented a detailed overview of Pasadena’s resilience and strategic growth following the catastrophic Eaton Fire of January 2025 and ongoing federal immigration challenges [21:48].

The primary theme, “Rising Together,” emphasized community unity and proactive governance in the face of both natural and man-made disasters.

Detailed Financial Status of Pasadena

Mayor Gordo reported that despite the economic strain of disaster recovery, the city is on its strongest financial footing in years [39:25]:

• Record Reserves: The city’s total reserves have reached an all-time high of $85.4 million, exceeding pre-COVID levels [39:12]. This includes:

  • $51.3 million in emergency reserves (15%).

  • $17.1 million in operating reserves (5%).

  • $14.3 million in a section 115 pension trust.

  • $2.7 million in an OPEB (Other Post-Employment Benefits) trust [38:42].

• General Fund Growth: Discretionary revenue improved to $365 million for the current fiscal year, representing a 6.8% year-over-year increase from $342 million in 2025 [33:02].

• Tax Revenue Drivers:

  • Property Tax: Remains the largest revenue source, with an assessed valuation of more than $42.7 billion [33:40].

  • Sales Tax: Forecasted at $77.6 million, though results are mixed; declines in motor vehicle sales were offset by growth in building materials and home furnishings driven by fire reconstruction [35:33].

  • Transient Occupancy Tax (TOT): Increased to $19.3 million, aided by the opening of the new AC Hotel and residents displaced by the fire staying in local hotels [35:20].

• Pension Liability: In December 2025, the city approved a plan to use the section 115 trust to pay down pension liabilities faster than CalPERS requires, aimed at saving general fund dollars in the long term [39:31].

Key Video Highlights

• Eaton Fire Recovery: The fire destroyed 185 structures [07:16]. The city has since received 80 building permit applications for fire-damaged properties, with 20 permits already issued and the first homes completed by late 2025 [54:12].

• Immigration Stance: Mayor Gordo and Vice Mayor Jess Rivas strongly condemned federal immigration raids, confirming that the Pasadena Police Department does not participate in federal civil immigration enforcement [25:35].

• Five Top Priorities for 2026:

  1. Enhanced fire prevention and department modernization.

  2. Roadway and street rehabilitation.

  3. Addressing homelessness with a year-round shelter (the Rose Palace is a proposed site [48:19]).

  4. Advancing the goal of 100% carbon-free energy by 2030 [48:45].

  5. Implementing the economic development strategic plan, including the 710 stub redevelopment [49:05].

• Leadership Updates: City Manager Miguel Marquez announced his retirement for Spring 2026, triggering a nationwide search for a successor [30:18].

• Innovation & Education: The city celebrated the launch of the Construction Trades Lab at Pasadena City College [58:23] and noted major healthcare additions like the new 100,000 sq. ft. Keck Medicine facility [59:56].

The Mayor concluded by expressing optimism for 2026, noting that while the state and federal budgets face significant deficits, Pasadena’s local preparations have created a “shining example of resilience” [01:04:55].