Full Text of Mayor Victor Gordo’s State of The City Speech

Here is the full text of Mayor Victor Gordo’s 2025 State of the City speech, delivered Wednesday night at the Pasadena Elks Lodge.

Resilient Pasadena: Rebuilding Our Community’s Future

Welcome

Welcome, and thank you for being here tonight. I want to acknowledge Vice Mayor Jess Rivas, my City Council colleagues, and our City employees who work hard each day on behalf of Pasadena. Thank you to my wife Kelly, and our children Michael and Emma for their love and unwavering support of my service as your Mayor.

We come together tonight in the most difficult of circumstances. I originally wanted to talk about celebrating all of the great progress we’ve made over the last year and look ahead to the many exciting opportunities that await us—and I will do so—but it is admittedly challenging given the circumstances in which we find ourselves at this moment, when so many of our families, friends, coworkers, neighbors, and loved ones have lost everything in the Eaton Fire, and our fellow Southern Californians have suffered a similar fate with the slew of other wildfires and rain damage, including our family and neighbors in Altadena and other part of the LA County region.

My heart goes out to everyone affected by these fires.

When thinking about a theme for this year’s State of the City, it was going to be “Building Our Community’s Future”, but the Eaton Fire changed that. This experience has required ALL of us to draw upon our inner reserves of strength, determination, and resolve. Together, we are Resilient Pasadena: and we are Rebuilding Our Community’s Future.

Pasadenans have long had a shared commitment of creating a community where all are welcome, respected, included, and able to work for the betterment of Pasadena. This has been evident and demonstrated time and again over the last year, and particularly during the last 44 days.

Before we begin this evening, I want to say thank you to our first responders, our City staff, my City Council colleagues, our City Manager Miguel Marquez, all at our Emergency Operations Center, our County, State, and Federal partners, and our partners in education, business, our non-profits, the faith-based community, the media, and most importantly, our residents for coming together and keeping people as safe as possible in the face of danger and uncertainty.

I am grateful for everyone that has come together since January 7th to help rebuild our community.

Thank you to Matthew C. Stadtler and Pasadena Elks Lodge 672 for its hospitality tonight, and for its commitment to Pasadena. Pasadena Elks Lodge 672 is a vibrant community of over 1,000 members that are dedicated to charity, justice, brotherly love, and fidelity.

For nearly 125 years, Pasadena Elks Lodge 672 has been a cornerstone of the community with a commitment to service, fellowship, and giving back in order to build our community’s future.

For those affected by the Eaton Fire, the Elks Club was serving free coffee and hot food throughout the day, providing water, new clothing, and toiletries to those who needed it, provided a place to park cars, and made quiet spaces available for charging phones, working, or just a peaceful respite from the devastation surrounding us.

Thank you to Elks Lodge 672, and thank you to everyone both within and outside of the City that has offered assistance, made donations to the relief effort, checked in on neighbors, and stepped up in so many ways to help rebuild our community’s future. This benevolence has not only alleviated suffering, but serves to remind us that choosing compassion and kindness towards others each day exhibits the best of humanity, and is the cornerstone of a resilient community.

Building on our Strengths

As you saw in the video a moment ago, together over the last year we were successful and doing great things to build Pasadena, and over the last six weeks we have made good initial progress and will continue to work diligently and safely to rebuild the future of our community and strengthen its resilience.

Just as we have not been deterred by other incredible challenges, including COVID, we will not be deterred by the Eaton Fire.

As we continue to address the immediate needs of residents impacted by the Fire, we will also continue to plan ahead by investing in infrastructure, strive for ongoing improvement in City services, and come out on the other side better for it. I’m optimistic as we enter 2025 knowing that Pasadena will once again continue to prosper.

It may take some time, but it will happen—so long as we continue to work together—residents, businesses, and civic leaders—we can reach our collective goal of ensuring that not only will every resident have an opportunity to be a successful and contributing member of our community, but that Pasadena will remain the crown jewel of the San Gabriel Valley for generations to come.

At City Hall, we are making good progress towards these goals.

Our City Manager Miguel Márquez has led the City’s day-to-day operations for two and a half years now—during both a pandemic AND a natural disaster!—and our team of employees at City Hall are resilient, resolute and steadfast in their commitment to working hard each day to rebuild our community for the benefit of all that live, work, and play in Pasadena.

Thank you to City staff, residents, and community partners for all you have done to help Pasadena be the great City that it is. Our resilience as One Pasadena gives me great comfort and confidence that no matter the challenges that lie ahead, together as a community we will rebuild and create an even better future for Pasadena.

Strength in Financial Stewardship

Now, let’s take a look at our finances. Slower economic growth has been the theme for more than a year and continues into 2025. Over the past five years, Pasadena has weathered the economic cycles better than most, and we continue to see businesses seeking to locate or relocate to Pasadena. We have a relatively stable retail, restaurant, and entertainment economies, and we have strong property values.

The City’s General Fund revenue has improved from $324 million in Fiscal Year 2024 to $342 million this year, which reflects a 5.5% increase. Utility Users Tax realized the largest increase for the current year, realizing gains from increased consumption of water and electricity, and rate adjustments.

Overall, the City’s General Fund is largely driven by strong property values and sales tax, which account for more than half of our General Fund revenue. The City has a diverse property tax base with a total assessed valuation of almost $41.4 billion.

While the devastating loss of properties in Pasadena is significant, from a valuation standpoint, it represents approximately 0.34% of the City’s total valuation. This equates to about $300,000 in annual property tax revenue for the City’s General Fund. Current property tax is at $108,000,715.

Transient Occupancy Tax—or TOT—charged to hotel and short-term rental customers has leveled out with current year revenues similar to the prior year. The anticipated opening of the new AC Hotel in the Playhouse District will increase revenue.

TOT is likely to see an increase of revenue for January related to the evacuations and stays in local hotels; however, we also anticipate that will be offset by reduced tourism, business travel, and the knowledge that long-term stays of 30 days or more are exempt from the tax.

The Transient Occupancy Tax (TOT) is at $18,505,296.

While sales tax revenue realized tremendous growth from 2021 through 2023, sales tax revenue has been relatively flat for more than a year and is expected to grow at more traditional rates of 2 to 3% for the next couple of years. Current Sales tax collected is at $80,223,221.

The Utility User tax is at $32,027,241.

Other taxes (Business License, Construction, Street Light and Traffic Signal) are at $21,493,139.

Reserves

After Covid, many argued for spending Federal Covid reimbursement dollars on one time expenditures, not knowing what the future might hold, Pasadena resisted the urge to spend precious resources so freely on one time expenditures.

Instead, we deliberately rebuilt the City’s reserves to prepare for a post Covid emergency—little did we know how quickly and such an emergency might come and the form it would take. Pasadena, we did the right thing and when we took a cautious financial approach and I am proud to report that in the face of this latest tragedy Pasadena’s reserves are at an all-time high exceeding even pre-covid levels:

15% Emergency Reserve $48,552,000

5% Operating Reserve $16,184,000

Section 115 Trust-Pension $13,600,452

Section 115 Trust-OPEB $42,576,011

TOTAL: $80,912,463

As other City’s struggle Pasadena’s finances are stable and ready to be put to work to protect City’s residents, visitors and business community.

The Rose Bowl and Convention Center Are Community Treasures and Lifelines For The Region.

The Rose Bowl, Brookside Golf Course, and the Convention Center all played critical roles in the City’s response efforts to the fire, and both operating companies realized near-term losses from postponed or cancelled events.

Despite the loss of some revenue that may negatively impact the current fiscal year, both operating companies continue to have a positive long-term economic outlook, with a robust calendar of events planned and a continued high demand for golf and golf amenities.

Equally important, the Rose Bowl and the Convention Center help keep our City vibrant and exciting by attracting events and visitors to Pasadena.

Federal and State Economic Outlook

While the Federal Reserve’s plan of a soft landing for the economy from high inflation has worked to a point, inflation has been stubborn and continues beyond the Fed’s target of 2.0%. Interest rates are likely to continue near current levels, and our forecast is for a slow-growth economic period, with less private capital investment and less new development.

Pasadena has historically utilized modest yet realistic financial projections to fund the critical services we provide to the community, and we will continue to do so to ensure our financial outlook remains stable.

The Governor’s budget as proposed on January 10th was presented as balanced and cited revenues more than original forecasts for the current year. It is important to note and I am concerned that the State has been using reserve funds to balance their budget, and the forecast into the 2025-26 continues to propose the use of reserves.

The State’s Budget Stabilization Account was $22.9 billion in 2023-24 and is projected to be reduced to $10.9 billion in 2025-26.

Additionally, our federal government has been operating under a series of continuing resolutions instead of an adopted budget to fund programs and commitments, and the President has been very clear about his intent to significantly reduce federal spending. These challenges at the state and federal levels are expected to reduce funding used to support critical services and projects in our City.

Despite these federal and state fiscal challenges, Pasadena is committed to maintaining its high level of service and fiscal well-being to ensure a healthy future. Each year the City endeavors to build a balanced budget that supports the community’s needs with the vast array of local, state, and federal funds available. While we often focus on the $342 million of the City’s General Fund, our goal is to utilize most appropriately the roughly $1.16 billion the City has access to for programs and services.

Where We Are Headed

Looking forward to the next fiscal year, we will remain cautious and the delicate balance will continue as we review where our funds are allocated, work with FEMA and other state and federal agencies and officials on our recovery efforts, and plan carefully to address critical needs in the community. Economic uncertainties require us to balance innovation in future growth with careful resource management.

Be certain that our budget will reflect this balance, prioritizing programs that directly benefit our residents while safeguarding Pasadena’s financial health.

We will continue to rebuild a stronger Pasadena by celebrating the diversity and strength of our community, making certain our youngest residents ages 0-5 have the early learning opportunities and resources they need for a strong and healthy start, and do our best to protect the environment in a thoughtful and cost-effective manner.

As we expand our recovery efforts, we will also continue to support our local small businesses and further our important work on a variety of City projects like the renovation of the Central Library, and the SR-710 Reconnecting Pasadena Master Plan.

I am proud that as part of the SR-710 undertaking, an important oral history component was launched to document the stories of those displaced by the SR-710 Freeway construction, preserving their voices as part of this historic project.

By investing in these projects, we are honoring Pasadena’s heritage while laying the groundwork for rebuilding a vibrant, connected future for our residents.

Affordable Housing

A cornerstone of building a better community is ensuring everyone has access to safe, affordable housing. The Eaton Fire has had a devastating impact on our Pasadena community, destroying or damaging 132 homes and displacing hundreds of residents—further deepening an already pressing housing crisis. In neighboring Altadena, the toll has been even greater, with over 6,000 homes lost or damaged and tens of thousands of residents displaced.

Prior to the Fire, over the past four years, Pasadena constructed 375 affordable housing units, representing 18% of all new housing built, and these include options for low-income families, workforce housing, and permanent supportive housing.

Also, 1,106 market rate units were converted to affordable housing. Today, approximately 10% of Pasadena households benefit from affordable housing or rental assistance programs.

The recently established Regional Housing Trust with Glendale and Burbank is also working hard to expand housing opportunities in our community. To date the Regional Housing Trust has awarded $4.9 million to assist affordable housing projects in Pasadena alone.

Our Housing Department is engaged with HUD and our lobbyists to ensure that Pasadena receives its commensurate share of federal disaster dollars as expeditiously as possible to assist residents in this time of need. These efforts reflect our commitment to addressing the housing crisis head-on and ensuring that Pasadena remains a diverse and inclusive community.

Education and Career Training

Over the last five years Pasadena has faced historic challenges, and the way we work, learn, and live has forever changed. The pandemic has unequivocally shifted the landscape of our world and of higher education. We have been forced to change and adapt the way we operate, and community colleges are poised to play an even more integral role in strengthening the economic vitality of our regional communities and shaping the future of the nation’s workforce.

Pasadena City College is a ladder of opportunity for everyone—from students who want to transfer to a four-year university, learn a trade to land a high-paying job, earn college credits in high school, acquire new skills to advance in their careers, or are learning English.

As a former community college student, I personally understand how community colleges transform lives and communities, and as an elected official, I recognize the limitless potential to build and strengthen the City’s partnership with PCC for the betterment of our residents and the region.

That’s why over the last two years I have been working with PCC, PUSD and the Los Angeles and Orange Counties Building Trades Council on our comprehensive career technical education training initiative to strategize how we can help interested Pasadena residents have opportunities and successful careers in various trades and professions.

And as we rebuild our community, the need for skilled workers will be great—working together, we can ensure our community generates the workforce needed to rebuild and maintain existing and future neighborhoods.

PCC is truly our community’s college. Working with President Jose Gomez, Superintendent Blanco and the PCC and the PUSD leadership, we have built the momentum to move the career technical education training initiative forward, and we will keep working together to ensure that PCC continues to be a space for innovation and a beacon for opportunity for our residents, region, and for the State of California.

What’s Happening in Pasadena?

Concurrent with our rebuilding efforts, Pasadena continues to thrive as a hub of economic activity and innovation. From technology, engineering, healthcare, and tourism to life sciences, AI, and quantum technologies, we are home to businesses that will build our community’s future. Over the past year, we’ve welcomed groundbreaking companies like Electric Vehicles Lucid Motors and Rivian, Genesis Motors, and Rusnak Porshe.

Pasadena’s role in the burgeoning AI and biotech industries positions us as a leader in cutting-edge research and development. With institutions like Caltech and the new Resnick Sustainability Institute and the Ginsburg Center for Quantum Precision Measurement at Caltech, we are tackling not only local challenges, but global challenges such as climate change, water quality and sustainable energy and building a better world right here in Pasadena—the center of the universe.

Look who else is joining us!

Many businesses have recently come to Pasadena and will help build a better community: Wedbush Securities opened in Pasarroyo; Motiv Space Systems announced plans for expansion; Huntington Hospital Medical Office Building and Keck USC Medical Office Building—both on South Fair Oaks Avenue—are each 100,000 sq. ft.; the AC Hotel by Marriott with 95 guest rooms broke ground on construction, and other businesses reaffirmed their commitment to our City by renewing leases or expanding office spaces.

We continue to attract new and exciting culinary offerings in the City. Downtown LA’s Pez Cantina team has made its way to Pasadena with Pez Coastal Kitchen, a modern Mexican seafood restaurant and bar.

Prince Street Pizza recently opened on Colorado, and the historic Filipinotown restaurant Woon has added a new location on Washington where they’re serving up Shanghaiese and Cantonese delights.

Star Leaf restaurant opened its doors in the Playhouse Village, bringing authentic Southeast Asian flavors to our vibrant dining scene, and let’s not forget the long awaited reopening and reimagining of Panda Inn on Foothill.

There is a lot going on in Pasadena—there always is—and it is a source of pride that these businesses not only create jobs, but also enhance the vibrancy of our community.

Closing

In my fifth year as your Mayor, and nearly three decades of serving our City, I am eager and ready to help rebuild our community’s future.

As we reflect on the progress we have made, the challenges we’ve endured—and those that lie ahead—one thing is clear: working together we will rebuild a bright and resilient Pasadena for generations to come.

Seven weeks ago, the annual spotlight shined on Pasadena and we shared our hope for a New Year with the world. Six weeks ago, the Eaton Fire blasted us into America’s spotlight once again, and the world shared in our sorrow.

Tonight, I simply say this: some of our streets may look like a zone of devastation, but I know Pasadena and Altadena–OUR DENA–is resilient and we will support our residents, family, friends, and neighbors to ensure OUR collective future is bright and strong.

It may seem impossible to rebuild, but we have all the tools and spirit necessary to come back stronger than ever. It is normal for us to feel sad for all Pasadena and Altadena has lost, but I am grateful for all that we DO have, and look forward to all that is yet to come.

We are ONE PASADENA, and not only will we get through this together, but give us some time and we will show the world EXACTLY what the center of the universe is made of.

With your resilience, your resolve, and your good help, we will re-build a better future for our community—one that honors our history, embraces our shared experience, and uplifts every resident.

In 2021, I said it was “A Time Like No Other”; in 2022 I said we would be “Stronger Together”; in 2023 I said, “Together We Thrive, Pasadena!”; last year we were “Leaping into the Future”—albeit not the one that any of us could have imagined.

Now, let’s pool all of our grit and determination to be Resilient Pasadena, and work together on Rebuilding our Community’s Future.

Thank you to all of my City Council colleagues and City staff —with a special shout out to my excellent team in the Mayor’s Office—Vannia, Araceli, and Jana —and all residents who are working hard at rebuilding our community.

Thank you for your trust, your partnership, and your unwavering commitment to our City. I look forward to all that we will achieve in the year ahead to rebuild Pasadena’s bright future. It is an honor and a privilege to serve as your Mayor and I thank you for that honor and privilege. Thank you and Good night.