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South Pasadena commission sets maximum millage at 5.8106% to appear on tax notices
Summary
The City Commission adopted Resolution 2026-02 to publish a maximum millage rate of 5.8106% for FY 2026–27 after Finance Director Heather Guadanoli said updated taxable values reduced the need to raise the rate as much as previously projected; the commission voted to adopt the resolution as amended.
The South Pasadena City Commission on Tuesday approved Resolution 2026-02 certifying a maximum millage rate of 5.8106% to the Penllis County property appraiser, the figure that will appear on property tax notices ahead of final budget votes in September.
Finance Director Heather Guadanoli told the commission updated property values reduced the downward pressure on revenues and recommended the 5.8106% maximum, calling it “a 10% tax increase over the rollback rate” as the staff-recommended ceiling for notices. She said the change reflected updated taxable values received hours earlier and that the commission could adopt a lower rate when the budget is finalized but could not publish a higher one.
The resolution-setting vote followed questions from commissioners about why South Pasadena was the only municipality among 24 in Penllis County to show a decrease in taxable value. Guadanoli said there is no appeals process for the values and noted the city has a relatively high amount of new construction (about $11 million cited) that should raise taxable values in future periods. Commissioners also referenced last year’s tax cut and a waiver of more than $1 million in permit fees as context for current revenue planning.
Commissioner Gail Nidinger reported the city’s FY2025 audit had no findings and that, through May 2026, the general fund had received about 77% of budgeted revenues with an operating surplus of $1,960,000. Other funds reported included capital improvements ($455,546), sewer ($137,000) and reclaimed water ($10,582).
Vice Mayor Tom Reid moved to amend the resolution to set the maximum millage at 5.8106%; Commissioner Linda Thompson seconded the amendment. The commission then voted to adopt Resolution 2026-02 as amended. All commissioners present answered in the affirmative on the record.
The action sets the upper bound that will be printed on ballots and notices; the commission will revisit final budget figures and adopt the final millage and budget before the statutory deadlines later in the year.
