Pasadena city leaders spent the first half of 2025 confronting the aftermath of a deadly wildfire while making major budgetary, housing and policy decisions that will shape the city for years .
The most consequential event was the Eaton Fire, which ignited Jan. 7 and burned more than 14,000 acres, destroying thousands of homes—primarily in Altadena but also affecting Pasadena—and killing at least 19 people. Within days, the City Council ratified a local emergency declaration, allowing Pasadena to access state and federal aid and expedite recovery efforts.
Over the following months, the council adopted a temporary tenant-protection ordinance for income-eligible renters displaced by the fire, approved mortgage and financial assistance programs, coordinated debris removal with Los Angeles County and the U.S. Army Corps of Engineers, and ordered soil testing for lead and other contaminants in affected neighborhoods. Nearly one-fifth of the city’s workforce was directly impacted by the fire, underscoring the scale of the crisis .
At the same time, the council made several high-stakes financial decisions.
In May, members unanimously approved a $2.46 billion, five-year Capital Improvement Program covering fiscal years 2026 through 2030. The plan funds 218 projects, including expanded street paving, fire department investments and homeless outreach initiatives. In June, the council adopted a roughly $1 billion operating budget for fiscal year 2026, balancing spending priorities amid uncertainty over potential federal funding cuts.
Starting in June at least a dozen people were detained during immigration sweeps in Pasadena.
Utility rates emerged as a flashpoint when the Municipal Services Committee rejected a proposed $7.6 million electric rate revenue increase, pending completion of a comprehensive rate study. The move reflected concerns about additional financial strain on residents still recovering from the fire .
Housing policy also dominated council discussions. Members approved an adaptive reuse ordinance designed to streamline the conversion of underused commercial buildings into housing.
In a separate decision, the council denied historic landmark status for Roosevelt Middle School, clearing the way for the Pasadena Unified School District to pursue affordable housing for staff displaced by the fire. The council also strengthened tenant protections by adopting an ordinance implementing all available safeguards under the state’s Ellis Act, including rights of first refusal if rental units return to the market.
The city continued to fund homelessness services, approving more than $1.3 million in Measure A funds during the period. Meanwhile, long-term planning advanced on the former 710 Freeway stub, as the Reconnecting Communities 710 Advisory Group resumed work on proposals aimed at healing neighborhoods divided by the original freeway construction.
The Legislative Policy Committee moved forward with a draft citywide anti-discrimination policy that would expand protections beyond state and federal law, covering areas such as housing, employment and education and adding new protected categories including immigration and housing status.
At the center of the council’s work was approval of the city’s Fiscal Year 2026 budget, a $1.499 billion spending plan described by Finance Director Matthew Hawkesworth as the most challenging in years.
The budget, the largest in Pasadena history, emphasized investments in public safety, housing, technology, climate resiliency and infrastructure, with $361.5 million allocated to the General Fund. Police and fire services received $121.4 million and $77 million, respectively .
Housing policy remained a dominant issue throughout the period, particularly following a December ruling by the California Second District Court of Appeal that largely upheld Pasadena’s voter-approved rent control law, Measure H.
While the court invalidated a provision requiring landlords to pay relocation assistance for lawful rent increases, the core of the measure survived, marking a significant win for tenant advocates. Earlier in the year, the Pasadena Rental Housing Board approved a 2.25% annual rent adjustment for 2025-26 and set a $238 per-unit landlord registration fee .
The council also continued to push forward plans to redevelop the long-stalled 710 Freeway stub, endorsing a vision to reconnect north and south Pasadena through slower streets, housing and green space.
A 16-member advisory group was appointed to guide the effort. Discussions were informed by a historical report detailing the displacement of thousands of residents during the original freeway construction. In a related move, the council authorized negotiations for the sale of 17 Caltrans-owned properties tied to the abandoned extension .
Homelessness remained a growing concern. Pasadena’s 2025 Point-in-Time Count found a 4% increase in homelessness to 581 individuals, including a 7% rise in unsheltered residents. In response, the council approved $1.1 million in Measure A funding for homeless services and prepared to receive an additional $1.32 million in fiscal year 2026 .
Utility rates and climate goals also drew scrutiny. Pasadena Water and Power proposed annual rate increases of 9.5% to address a $67.9 million budget shortfall and fund a transition to carbon-free electricity. In December, the council approved the utility’s Optimized Strategic Plan to guide that transition .
Public safety policies received renewed attention, including a review of the Police Department’s request to renew authorization for certain military equipment and oversight panel discussions on surveillance technology evaluation procedures.
City Manager Miguel Márquez announced his retirement in November. Citing significant personal family needs following his father’s recent passing, Márquez plans to stay on until a successor is named.
His departure marks a loss for the city, but he’s praised for bringing fiscal stability and building a strong leadership team, leaving Pasadena on solid ground.
Late in the year, the City filed a lawsuit against UCLA alleging the university is attempting to break its lease with the Rose Bowl and move its struggling football team to SoFi Stadium.
A judge refused to grant the City an emergency restraining order. The two sides are due back in court next month.
The period concluded with progress on one of the city’s most visible capital projects: the $195 million retrofit and repair of the earthquake-damaged Central Library. Following voter approval of Measure PL in 2024, the city broke ground on the project in December, with completion expected by summer 2028.
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