Infrastructure Financing

Through City Council priorities, community surveys, constituent feedback, and daily experience, it was clear that one of the City’s most critical problems is that the streets are in poor condition, the trajectory is the wrong direction, and current funding isn't enough to turn it around.

As part of last year’s budget process, City staff was asked by City Council to explore options for making real progress in improving City streets.  After evaluating the available tools, the option that provides significant funding immediately is a voter-approved general obligation bond; specifically, an $80 million bond, which would require approval by two-thirds of voters under California law.  This was first discussed with City Council in August 2025 as part of budget adoption, then again in December 2025 and February 2026, which has led to the discussion on Wednesday, June 17, 2026, to consider placing a bond on the November 2026 ballot.

Resources

Discussion with Assistant City Manager on City's Budget
Discussion with South Pasadena's Principal Engineer on City Infrastructure
Discussion with Public Works Director on City's Infrastructure

Recording of Proposed 2026-2027 Budget and Infrastructure Conditions - YouTube

10-Year Resurfacing Plan Map (PDF, 1MB)

 

Maintaining South Pasadena's Infrastructure

South Pasadena is a 3.44-square-mile city with an extensive network of infrastructure that is utilized daily. The City maintains:

  • 69 miles of streets
  • Dozens of traffic signals
  • 83+ miles of water mains
  • 60 miles of sewer lines
  • 454 fire hydrants

Maintaining this system is an ongoing effort. City crews repair more than 1,000 potholes annually, while larger street resurfacing projects are completed as funding allows.

As part of the City’s current budget process and ongoing planning efforts, the City is evaluating long-term infrastructure improvements and gathering community input to help guide future decisions.

The City of South Pasadena is committed to maintaining safe, reliable streets and infrastructure that residents use every day. In order to deliver on this goal, the City is reviewing options to keep road maintenance and repair properly funded, including through additional revenue sources.

Nearly Half of Local Streets Rated "Poor" or "Fair" 

The City recently completed a draft Pavement Management Plan (PMP) which concluded that more than half of the City’s streets are in “poor” or “fair” condition and need to be repaired or reconstructed. In addition to surface conditions, aging underground infrastructure, including water and sewer systems, require upgrades to help prevent failures such as leaks or sinkholes.

Why This is Important to Address Now

Roads requiring full reconstruction cost up to $2.5 million per mile. Without sufficient funding for a regular maintenance, rehabilitation, and reconstruction program, street conditions will continue to deteriorate and costs will escalate over time.

Current Budget for Street Repairs and Improvements

The City has made ongoing investments in infrastructure across the city, including:

  • $1.65 million for minor road repair over the next five years
  • The $7.5 million Street Improvement Project, which provides water, concrete, and asphalt improvements to multiple residential streets and is expected to be completed in summer 2026
  • The $42 million grant-funded Huntington Drive / Fremont Avenue Corridor Improvements Project, funded by Metro and Caltrans, which is tentatively scheduled to begin construction in early 2027
  • Ongoing federal and regional grant-funded projects for traffic signals, bike infrastructure, and pedestrian safety
  • Click Here for all of the City’s current street and infrastructure projects

However, many of these investments depend on restricted funding sources and grants, which can fluctuate year by year.

City's Proposed Budget Outlook for Fiscal Year 2026-2027

While core operating services are funded through South Pasadena’s Proposed General Fund budget for FY 2026-2027, which is currently balanced with approximately $45.5 million in revenues and $45.5 million in expenditures, General Fund revenues are insufficient to provide capital funding necessary to improve street conditions.

Most funding for infrastructure improvements comes from a mix of state-level gas taxes, Los Angeles County transportation funding (Measure R & M), and grants and restricted funds.

These sources help generate funds for the City to conduct basic repairs, but not enough to allow for necessary investments to catch up on critical reconstruction. 

Potential Funding for Future Improvements

The City is evaluating potential options to support infrastructure improvements and repairs, including a new revenue bond to be considered by local voters in November 2026.

Any new revenue source brought forward to South Pasadena voters, if approved, would be entirely invested in South Pasadena streets, sidewalks, and curbs. Voter approved local revenue cannot be appropriated or taken by any other entity, like the county, state or federal governments.

Frequently Asked Questions

Informational Handout - 10 Year Improvement Plan (05-2026) (3).jpg

Will the bond fix my street, and when?

 The City has prepared a phased improvement plan showing which streets are scheduled for resurfacing or reconstruction in each fiscal year, from the current fiscal year through 2035. You can find your street on the plan map above and read its color-coded year to see when work is anticipated. 

Please note that the schedule is preliminary and contingent upon voter approval of the proposed bond measure. Project timing and sequencing may be adjusted as engineering assessments are completed and construction conditions evolve.

The City prioritized projects based on roadway conditions, readiness for construction, cost-effectiveness, and coordination with other planned infrastructure improvements. Nearby streets were grouped into localized projects to reduce construction and traffic-control costs, while scheduling was coordinated with major projects such as the Fremont/Huntington Corridor Improvements Project and the Westside Reservoir Project to avoid repaving streets that may need to be disturbed for future work. In areas with tighter access, such as the Southwest Monterey Hills, projects were phased to minimize neighborhood disruption and maintain access for residents during construction.

 

What funding did the City spend halting SR-710 extension versus fixing streets?

Halting the extension of the SR-710 through South Pasadena was a multi-decade process that was most likely funded by a blend of municipal, private, and non-profit funding sources. The City has continued to allocate funds to maintaining local streets and roads, but current needs and rising costs for this work exceed available resources. The potential bond is one means of addressing these needs, subject to voter approval. 

 

Residents just approved a $130 million bond for the school district. What will the combined impact look like on a typical South Pasadena tax bill?

South Pasadena Unified School District (SPUSD) pursued a separate bond this year for facility needs. The current bond proposal being discussed is specific to South Pasadena’s streets and infrastructure and is not related to SPUSD’s bond which was recently approved by voters.

The table below is an estimated property tax comparison among immediately adjacent cities. The table is for illustrative purposes only based on a $500,000 Assessed Value using information publicly available through the Los Angeles County Assessors Office and information from the SPUSD ballot question.  Residents are encouraged to look up their property’s assessed value and calculate the estimated impacts to their property taxes.

If voters approve the street bond, then South Pasadena will be the median of adjacent cities in terms of property tax costs. 

 

How will this impact residents' property taxes? Will newer homeowners be unfairly charged?

The draft bond measure would cost an average of about $33 per $100,000 of assessed valuation per year, so a home with an assessed valuation of $1 million can expect roughly $330 per year to support the infrastructure improvements outlined by the bond proposal. Residents are encouraged to look up their property’s assessed value and calculate their own estimated cost. 

 

The City says the real need is over $135 million. Will the City need to ask for more funding in the future?

The potential bond was calculated on present needs to bring local streets and infrastructure to acceptable levels and in line with surrounding communities. 

As part of the Fiscal Year 2026-2027 budget, the City will be exploring alternate financing tools, such as Development Impact Fees, Enhanced Infrastructure Financing Districts, and Community Facilities Districts, as mechanisms to begin accumulating funds now so that, over time, the City is able to leverage new development to continue to make infrastructure investments after the $80 million is exhausted, if approved by voters.

 

What will happen to the conditions of the streets if voters do not approve the bond?

Street conditions are expected to worsen without dedicated funding to support improvements. The City’s draft Pavement Management Plan, scheduled to be adopted this summer, found the City’s Pavement Condition Index to be worse than many neighboring cities and projects it to decline from its current score in the mid-50’s to the mid-40’s if no new resources are added. Deferring repairs also cost more over time: every $1 invested in timely maintenance prevents an estimated $6 to $10 in future reconstruction. A street that needs only routine work today can cost dramatically more once it deteriorates to the point of full reconstruction — roughly $50,000 per mile versus up to $2.5 million per mile. Waiting means starting from a lower baseline and facing a larger total bill later.

Additionally, the City has several street improvement projects currently in design, including the Indiana Avenue project. Funding sources have not yet been identified to construct these projects once design is complete. Without additional funding, they may remain on hold for several years while the City accumulates sufficient resources for construction. During that time, roadway conditions throughout the City will continue to deteriorate, increasing future repair costs and extending the timeline for needed improvements.

 

Once the bond money is spent, how will the City guarantee to maintain these streets in the future?

The potential bond will fund capital investments to materially improve the condition of local streets and other infrastructure. If approved by voters, this would relieve pressure on the City’s general fund to maintain these and other public services. The City has a maintenance program funded through the operating budget and special revenue sources dedicated to maintenance of streets and transportation corridors that covers day-to-day activity, such as pothole repairs, slurry seals, keeping equipment running, and replacing what wears out.

Conversely, capital improvements focus on restoring or extending the useful life of an asset, such rebuilding a failed road, replacing an entire water line, and modernizing a traffic corridor with new technology. These are larger investments, typically paid for through restricted funding sources, one-time grants, or, for very large needs, debt financing. The financing plan being discussed by City Council is related to capital improvement investments, not day-to-day maintenance.

 

How can residents track what they're getting for their money? Will the City publish yearly reports?

The proposed measure would require spending disclosure and independent public audits, and all funds would be restricted to use within South Pasadena. The City already uses the Pavement Condition Index to measure street quality, which makes it feasible to report progress publicly.  The Ordinance also requires annual reports by the Chief Financial Officer identifying how bond funds were spent in the prior fiscal year.

 

What are other considerations for residents?

South Pasadena’s smaller sales tax base presents unique challenges to funding public services and infrastructure investment. With various demands on the City General Fund, declining revenue projections and deferred needs, a dedicated bond measure is one option to fund street improvements without cuts to other City services such as parks and public safety. If approved, all funds from the bond would remain local in South Pasadena. No dollars would be transferred to the legislature or spent outside the city.

Residents should also be aware that property taxes are determined based on assessed value instead of market value, which reflects the price that a property would sell for in the current open real estate market. Assessed value is determined by the Los Angeles County Assessor and is generally more stable than a property’s market value. 

 

Community Participation

The City of South Pasadena hosted a series of Community Meetings on May 18, 21, and 28 to provide an overview of the City’s infrastructure, budget outlook, and long-term investment plans. These meetings offered an opportunity for residents to learn more, ask questions, and share input as the City explores options to address future capital investments. 

The presentation from these meetings is available at these links:

South Pasadena's Proposed Budget Presentation(PDF, 2MB)

Recording of Proposed Budget Presentation - YouTube