Pasadena plots slapping residents with five new taxes

Pasadena leaders are considering asking voters to approve up to five new taxes as officials warn of a growing budget problem that they say could threaten funding for essential services.The city council is expected to vote Monday night on which tax proposals should move forward for the Nov.3 municipal election, Pasadena Now reported.The meeting is not about approving any taxes outright.

Instead, council members will decide which measures, if any, should be drafted for the ballot, where voters would have the final say.City officials say the proposals are needed because Pasadena is facing what they describe as a “widening structural deficit” — a situation where spending is rising faster than revenue.The city has relied on one-time funding and reserve money to balance its General Fund budget for the past three years, the local outlet reported.

The city’s current fiscal year budget includes roughly $379.7 million in General Fund revenue compared with about $383.4 million in planned spending, leaving a gap of around $3.8 million that officials say was covered using $5 million in one-time funds.The imbalance is expected to worsen over time, with revenue projected to grow by about 3% to 4% annually while expenses are forecast to increase between 4% and 6%.Although Pasadena continues to adopt balanced budgets and maintains strong bond ratings, city officials argue that existing revenues are not enough to fully fund priorities including fire station upgrades, wildfire prevention, road repairs, pedestrian and bicycle improvements, homelessness programs and economic development initiatives.To address the shortfall, staff presented five possible tax measures that together could generate between roughly $5 million and $30 million annually.City staff said they favor pursuing the quarter-cent sales tax because it would provide a stable source of general revenue and is similar to measures previously approved by local voters.For funding dedicated projects, staff recommended...