Finance Committee
February 14, 2022

AGENDA

FINANCE/AUDIT COMMITTEE

SPECIAL MEETING NOTICE
FEBRUARY 14, 2022
PUBLIC MEETING 3:00 P.M.

Members
Victor M. Gordo, Mayor
Felicia Williams, District 2
John J. Kennedy, District 3
Andy Wilson, District 7
STAFF
Matthew Hawkesworth, Director of Finance
Theresa Fuentes, Assistant City Attorney
Gloria Acevedo, Recording Secretary

MISSION STATEMENT
The City of Pasadena is dedicated to delivering exemplary municipal services, responsive to our entire community and consistent
with our history, culture and unique character.

In compliance with the Americans with Disabilities Act of 1990, Assistive Listening Devices are available from the City Clerk’s Office with a 24-hour advance notice.

Please call (626) 744-4124 to request use of a listening device.

Language translation services are available for this meeting by calling (626)
744-4124 at least 24 hours in advance.

Habrá servicio de interpretación disponible para éstas juntas llamando al (626)744-4124 por lo menos con 24 horas de anticipación.

Meet
ings are broadcast live on cable Channel 3 and on the Internet at http://pasadena.granicus.com/mediaplayer.php?camera_id=2&publish_id= 9 and https://www.pasadenamedia.org/watch/ (Click on Video Streamlining on the right side of the screen).

It
ems on the agenda may not be called in order listed. Agendas and supporting documents are available on the Internet at
https://www.cityofpasadena.net/commissions/city-council-finance-committee/ Materials related to an item on this Agenda submitted to the Finance/Audit Committee after distribution of the agenda packet will be posted online and listed as: “Supplemental Agenda Material Received after the Posting of the agenda”

PURSUANT TO EXECUTIVE ORDER N-29-20 ISSUED BY GOVERNOR GAVIN NEWSOM ON MARCH 17, 2020, THE SPECIAL FINANCE/AUDIT COMMITTEE MEETING FOR FEBRUARY 14, 2022 AT 3:00 P.M. WILL TAKE PLACE SOLELY BY VIDEOCONFERENCE/TELECONFERENCE.

TO ACCESS THE MEETING:
http://pasadena.granicus.com/MediaPlayer.php?publish_id=9 AND
WWW.PASADENAMEDIA.ORG
In order to facilitate public participation at meetings held solely by electronic means, the City will accept public comment in the following manner:

1. Dur
ing the meeting, members of the public may provide live public comment by submitting a speaker card prior to the start of public comment on that item, at the following webpage:
www.cityofpasadena.net/commissions/public-comment
After submitting a public speaker card, join the virtual meeting at the published start time with a computer, other electronic device, or by telephone. The same name or telephone number on the Speaker Card must be used for the virtual meeting in order to locate and unmute the speaker.

Computer or electronic devices, join the meeting at:
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Telephone only dial-in: 1-669-900-6833, Meeting ID: 161 482 446

2. Members of the public may submit correspondence of any length prior to the start of the meeting, at the following email address:
gaceved
[email protected]
Corr
espondence will be forwarded to the legislative body prior to the start of the meeting.

3. If assistance is needed by phone, please call the City Clerk's Office at:
(626) 744-4124.

IF YOU

NEED A REASONABLE MODIFICATION OR ACCOMMODATION

PURSUANT TO THE AMERICANS WITH DISABILITIES ACT

BECAUSE YOU ARE UNABLE TO PARTICIPATE ELECTRONICALLY AS SET FORT
H ABOVE, CONTACT THE CITY CLERK’S OFFICE
AS SOON AS POSSIBLE AT (626) 744-4124 OR
[email protected].

SPECIAL MEETING
AGENDA

FINANCE/AUDIT COMMITTEE
FE
BRUARY 14, 2022
Public Meeting: 3:00 P.M.

Council Chamber, Pasadena City Hall
100 North Garfield Avenue, Room S249
PUBLIC MEETING - 3:00 P.M.

ROLL CALL
PUBLIC COMMENT – LIMITED TO ITEMS ON THIS SPECIAL MEETING

AGENDA AND WILL BE HEARD AT THE TIME THE ITEM IS

CONSIDERED

APPROVAL OF MINUTES
D
ecember 27, 2021 Cancellation Notice
January 10, 2022 Special Meeting
January 24, 2022 Special Meeting

NEW BUSINESS

1. F
ISCAL YEAR JUNE 30, 2021 ANNUAL FINANCIAL REPORTS

INFORMATION ONLY

2. INTERNAL AUDIT STATUS UPDATE - REGARDING THE JULY THROUGH DECEMBER 2021 WORK PLAN

3. F
Y 2022 CAPITAL IMPROVEMENT PROGRAM 2nd QUARTER MONITORING REPORT

ADJOURN

APPROVAL OF MINUTES
• DECEMBER 27, 2021 CANCELLATION NOTICE
• JANUARY 10, 2022 SPECIAL MEETING
• JANUARY 24
, 2022

SPECIAL MEETING

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OFFICE OF THE MAYOR

CITY OF PASADENA

NOTICE OF CANCELLATION

FINANCE COMMITTEE

REGULAR MEETING
DECEMBER 27, 2021
NOTICE IS HEREBY GIVEN that the regular meeting of the Finance Committee, scheduled for Monday, December 27, 2021 at 4:00 p.m. in the Pasadena City Hall, 100 North Garfield Avenue, Pasadena, is cancelled.

Victor M.

Finance Co
I HEREBY CERTIFY that this notice, in its entirety, was posted on the Internet at www.cityofpasadena.net/commissions/city­ council-fin ance-committee and on the Council Chamber Bulletin Board, Room S249 and the Bulletin Board in the rotunda area, City Hall, 100 North Garfield Avenue, this 23
rd
day of December, 2021, by 5:30 p.m., and that copies hereof were faxed, emailed or delivered to each member of the City Council and to each local newspaper of general circulation, radio or television station requesting notice in writing, all of which recipients are identified on the distribution list set forth herein below.

DISTRIBUTION:

City Council
City Manager
City Attorney
Public Information Officer
Los Angeles Times
Pasadena Independent
La Opinion
Pasadena Journal
Pasadena Now
Pasadena Star News
Pasadena Weekly
Conversation Live
Finance Committee

Special Meeting Minutes

FINANCE COMMITTEE
Monday, January 10, 2022 ▪ 3:30 p.m.

Videoconference/Teleconference Council Chambers Room S249, Pasadena City Hall

A. CALL TO ORDER: The special meeting of the Finance Committee was called to order at 3:32 p.m. with Mayor Gordo, Vice Mayor Wilson, and Councilmembers Kennedy and Williams.

Attendees (Absent as indicated):

Councilmembers Staff
Mayor Gordo, Chair
Andy Wilson
John Kennedy
Felicia Williams (Arrived 3:48 p.m.)
Cynthia Kurtz
Matthew Hawkesworth
Theresa Fuentes
Shari Thomas
Manuel Carmona

Vic Erganian

Recording Secretary: Sandra Campos

B. PUBLIC COMMENT- None

C. APPROVAL OF MINUTES

 December 13, 2021 Special Meeting

The minutes were approved as submitted.

D. NEW BUSINESS

1. AUTHORIZATION TO ENTER INTO A CONTRACT WITH PFM FINANCIAL

ADVISORS LLC FOR INDEPENDENT REGISTERED MUNICIPAL ADVISOR FOR THE

WATER AND POWER DEPARTMENT FOR A PERIOD OF THREE YEARS, WITH TWO

OPTIONAL ONE YEAR EXTENSIONS FOR A TOTAL AMOUNT NOT TO EXCEED $250,000

Mayor Gordo introduced the item, Matthew Hawkesworth, Director of Finance, clarified that PFM Financial had provided services to the City through third-party organizations that the City belongs to and this is the first time the Pasadena Water and Power plans to execute a contract directly with PFM Financial Advisors. Shari Thomas, Assistant General Manager, provided a PowerPoint presentation and responded to a comment.

Vice Mayor Wilson expressed content with the thorough selection process in a very close outcome.

The Finance Committee approved forwarding this report to the full City Council.

2. RECOGNIZE AND APPROPRIATE $260,650 TO THE DEPARTMENT OF PUBLIC HEALTH’S FISCAL YEAR 2022 OPERATING BUDGET RELATED TO THREE NEW GRANTS; ADD 3.25 LIMITED-TERM GRANT FUNDED FTEs

Mayor Gordo introduced the item and Manuel Carmona, Deputy Director for Public Health, responded to questions.

Vice Mayor Wilson request clarification on the compensation for the two new positions. Mr. Carmona responded that the Program Coordinator I position was budgeted at $135,000 per year and the Community Service Represented at $90,000, the amounts factor in benefits.

The Finance Committee approved forwarding this report to the full City Council.

3. APPROVAL TO AMEND THE CITY’S 457(B) DEFERRED COMPENSATION PLAN TO

ALLOW FOR IN-PLAN ROTH CONVERSIONS

Mayor Gordo introduced the item that allows plan participants to convert their deferred compensation savings into an in-plan Roth account. Matthew Hawkesworth, Director of Finance, provided a PowerPoint presentation.

The Finance Committee approved forwarding this report to the full City Council.

E. INFORMATION ONLY

4. FINANCIAL UPDATE JANUARY 2022

Mayor Gordo introduced the item. Matthew Hawkesworth, Director of Finance, provided a PowerPoint presentation and responded to questions.

Vice Mayor Wilson asked if the increase in the Consumer Price Index (CPI) is expected to create a large increase in property taxes. Mr. Hawkesworth clarified that CPI is capped at 2% for property tax growth.

Councilmember Williams asked if the sale of the private properties to the state would be reflected in the September 2022 tax roll. Mr. Hawkesworth responded that the process can take between six-eighteen months; there is a possibility that a supplemental bill can be granted for 2022 and the remaining amount be reflected in the following year’s tax roll.

Mayor Gordo asked for the breakdown of Measure I, whether the City should reconsider the allocation to the Pasadena Unified School District (PUSD), and if

the City has capped the transfer. Mr. Hawkesworth shared that the City transfers 1/3 of the sales tax revenue and stated there is no cap on the amount. Mayor Gordo suggested for the City to consider its own expenses as a result of the increase in CPI and that a cap should be considered. Mr. Hawkesworth committed to working with the Interim City Manager to evaluate the option as budget discussions begin. Mayor Gordo requested discussion points to be shared with the Finance Committee and the City Council.

Councilmember Kennedy requested clarification on whether the City is considering changing the allocation of Measure J funds to PUSD. Mayor Gordo responded that the City will keep its commitment to PUSD as a result of Measures I & J; however, if more revenue than promised is being transferred, then the City should consider explaining to PUSD that the City is dealing with unanticipated costs. Mayor Gordo added that as the City sees unanticipated revenue, it should consider balancing that revenue against significant anticipated costs.

Vice Mayor Wilson inquired about the General Fund subsidy to the Rose Bowl Operating Company (RBOC); whether, the RBOC could alternatively take their operating income and cover their debt service while the City makes a transfer.

Mayor Gordo clarified that the RBOC’s debt service belongs to the City. Mr.

Hawkesworth clarified that the assistance to the Pasadena Center Operating Company (PCOC) through the Transient Occupancy Tax agreement is considered in the Other Expense Category in the forecast and for the RBOC the assistances is in the Debt Service line item. Vice Mayor Wilson requested that the subsidy to any operating company be more transparent in future presentations.

Mayor Gordo asked staff for the percentage of long-term properties remaining on the tax rolls and if the tax revenue from the potential sale of these properties is known. Mr. Hawkesworth will work with the City’s tax consultants to gather the data.

The Finance Committee acknowledged receiving the report.

F. ADJOURN

With no further business to come before the Finance Committee, the meeting adjourned at 4:07 p.m.

_________________________________
Victor M. Gordo Date
Chair, Finance Committee

_________________________________
ATTEST: Gloria Acevedo, Date
Recording Secretary

Special Meeting Minutes

FINANCE COMMITTEE
Monday, January 24, 2022 ▪ 3:30 p.m.

Videoconference/Teleconference Council Chambers Room S249, Pasadena City Hall

A. CALL TO ORDER: The special meeting of the Finance Committee was called to order at 3:36 p.m. with Mayor Gordo, Vice Mayor Wilson, and Councilmember Kennedy.

Attendees (Absent as indicated):

Councilmembers Staff
Mayor Gordo, Chair
Andy Wilson
John Kennedy
Felicia Williams (Absent)
Matthew Hawkesworth
Theresa Fuentes
Shari Thomas
Manuel Carmona
Timothy Park
Flora Karmiryan
Stephanie Chang
Vic Erganian
Chad Augustin
Michelle Perera
Nicholas Rodriguez
Kimberly Siemen
Karen Peterson
Jim Wong
Brenda Harvey-Williams

Recording Secretary: Gloria Acevedo

B. PUBLIC COMMENT- None

C. NEW BUSINESS

1. AMENDMENTS TO FISCAL YEAR 2022 ADOPTED OPERATING BUDGET

Mayor Gordo introduced the item. Vice Mayor Wilson asked for the report highlights. Matthew Hawkesworth, Director of Finance, shared that some transportation areas are accepting grant money related to the Coronavirus Relief Act and that it is expected for that to continue for the next 12-18 months. Vice Mayor Wilson then asked if that is what staff had expected. Mr. Hawkesworth stated that for the most part it was as expected, he added that some applications were competitive and awards are not always guaranteed.

Councilmember Kennedy requested an explanation of the purpose of the grant increase and confirmation that the funds were coming from Blue Shield. Manuel Carmona, Deputy Director of Public Health, confirmed the grant is from Blue Shield to the Pasadena Public Health Department.

The Finance Committee approved forwarding this report to the full City Council.

E. INFORMATION ONLY

2. CONSUMER PRICE INDEX (CPI) ON CURRENT CONTRACTS

Mayor Gordo introduced the item and Matthew Hawkesworth; Director of Finance, provided a short overview of the Memo. Mr. Hawkesworth reminded the Committee that inflation and CPI are only one component affecting the City’s cost, raw material and technology can trend different from CPI and inflation; therefore, affecting the City’s finances moving forward.

Mayor Gordo asked staff to consider placing a cap on CPI on future contracts as the City cannot sustain annual automatic increases of 8.6% on large contracts. Mr.

Hawkesworth shared that some contracts have increases tied to items similar to CPI, but not identical; sometimes the cost is tied to raw material or the production of the goods. Staff is finding that some vendors will not commit to long-term contracts and although some contracts are locked in, the City is subject to the market price of raw material, and that’s when increases are unavoidable. Erika Alvarez, Purchasing Administrator, added that vendors are not interested in renewing long-term contracts and that staff is working with the City Attorney’s Office for the feasibility of placing a cap on contracts tied to CPI.

Mayor Gordo suggested a second and third round of analysis to ensure residents are being treated fairly as increases to rates and services can result from increases to contracts. Mr. Hawkesworth committed to working with staff during next year’s budget meetings to address the effects of rates and charges on residents and businesses, as a result of the increases to CPI.

Vice Mayor Wilson asked staff to be mindful of potential revenue enhancements as a source to reduce the impact to the General Fund. Mayor Gordo suggested the City could collect from special funds that have a funding stream both from inside and outside the City. Mr. Hawkesworth committed to evaluating every possible funding source.

The Finance Committee acknowledged receiving the report.

3. STRANDED INVESTMENT RESERVE FOLLOW UP

Matthew Hawkesworth, Director of Finance introduced the item. Shari Thomas, Assistant General Manager, responded to questions.

Councilmember Kennedy inquired about the assets in the reserve fund.

Shari Thomas, Assistant General Manager, shared that the balance as of June 30 is $55 million and the primary use of these funds remains the cost associated with the agreements with the Intermountain Power project, the Palo Verde Nuclear Generating Station in Arizona, and local generation (the Magnolia Power Plant in Burbank CA).

Vice Mayor Wilson requested an activity summary of the drawdown for the last ten-years. Shari Thomas shared that an analysis is being prepared and the recommendations will be presented to the Municipal Services Committee. Vice Mayor Wilson requested the summary also be shared with Councilmember Kennedy.

The Finance Committee acknowledged receiving the report.

F. ADJOURN

With no further business to come before the Finance Committee, the meeting adjourned at 4:02 p.m.

_________________________________
Victor M. Gordo Date
Chair, Finance Committee

_________________________________
ATTEST: Gloria Acevedo, Date
Recording Secretary

NEW BUSINESS

1. FISCAL YEAR JUNE 30, 2021 ANNUAL FINANCIAL

REPORTS

Agenda Report
February 14, 2022
TO: Honorable Mayor and City Council/Successor to Pasadena Community Development Commission
THROUGH: Finance/Audit Committee
FROM: Department of Finance
SUBJECT: FISCAL YEAR JUNE 30, 2021 ANNUAL FINANCIAL REPORTS RECOMMENDATION:

It is recommended that the following reports for the year ended June 30, 2021 be reviewed, discussed, and filed by the City Council and/or the Successor Agency to Pasadena Community Development Commission.

A. Annual Comprehensive Financial Report
B. Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards (This replaces what was called the "Management Letter.")
C. Pasadena Center Operating Company Basic Financial Statements D. Rose Bowl Operating Company Basic Financial Statements E. Pasadena Community Access Corporation Basic Financial Statements F. Pasadena Fire and Police Retirement System Basic Financial Statements G. Air Quality Improvement Fund Financial Statements and Compliance Report H. Pasadena Housing Successor Basic Financial Statements I. Foothill Workforce Development Board Basic Financial Statements J. Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit (Gann Limit)
K. Independent Accountants' Report on Agreed-Upon Procedures Applied to Employee Deductions for the Internal Revenue Code Section 457 Deferred Compensation Program
L. The Auditors' Communications with the City's Finance/Audit Committee MEETING OF ______ _ AGENDA ITEM NO. ____ _

ANNUAL COMPREHENSIVE FINANCIAL REPORT
JUNE 30, 2021
CITY
OF

C A L I F O R N I A
Attachment A

Thank You

TO OUR PASADENA HEROES

CiTy oF PASADenA, CAliFoRniA
AnnUAl CoMPReHenSiVe
FinAnCiAl RePoRT
year ended June 30, 2021
STeVe MeRMell, CiTy MAnAGeR
MATTHeW e. HAWKeSWoRTH, DiReCToR oF FinAnCe
PRePAReD by THe DePARTMenT oF FinAnCe, CiTy oF PASADenA Victor M. Gordo
Mayor
Tyron Hampton
Councilmember
District 1
Felicia Williams
Councilmember
District 2
John J. Kennedy
Councilmember
District 3
Gene Masuda
Councilmember
District 4
Jessica C. Rivas
Councilmember
District 5
Steve Madison
Councilmember
District 6
Andy Wilson
Vice Mayor
District 7

CITY OF PASADENA TABLE OF CONTENTS
Annual Comprehensive Financial Report | June 30, 2021 i

INTRODUCTORY SECTION
Letter of Transmittal ...................................................................................................................................................................vii Principal City Officials ..............................................................................................................................................................xviii Organizational Chart ................................................................................................................................................................. xix GFOA Certificate of Achievement for Excellence in Financial Reporting ................................................................................... xx

FINANCIAL SECTION
Independent Auditors’ Report ..................................................................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) ....................................................................... 5 Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position .................................................................................................................................................. 20 Statement of Activities ...................................................................................................... ................................................. 22 Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet .............................................................................................................................................................. 24 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......................................................................................................................... 25 Statement of Revenues, Expenditures and Changes in Fund Balances ....................................................................... 26 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ..................................................................................................... .................................... 27 Proprietary Fund Financial Statements
Statement of Net Position ........................................................................................................................................... 28 Statement of Revenues, Expenditures and Changes in Net Position .......................................................................... 30 Statement of Cash Flows ............................................................................................................................................. 32 Fiduciary Fund Financial Statements
Statement of Net Position ........................................................................................................................................... 36 Statement of Changes in Net Position ......................................................................................................................... 37 Discretely Presented Component Units
Combining Statement of Net Position ......................................................................................................................... 38 Combining Statement of Revenues, Expenditures and Changes in Net Position ........................................................ 39 Notes to the Basic Financial Statements ................................................................................................................................ 43

CITY OF PASADENA TABLE OF CONTENTS
ii Annual Comprehensive Financial Report | June 30, 2021 FINANCIAL SECTION (Continued)
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – General Fund .......................................................................................................................................................... 113 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – Housing Successor Fund ......................................................................................................................................... 114 Notes to Required Supplementary Information ............................................................................................................... 115 Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan ................................................. 116 Schedule of Plan Contributions – Miscellaneous Plan ...................................................................................................... 118 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan .............................................................. 120 Schedule of Plan Contributions – Safety Plan ................................................................................................................... 122 Schedule of Changes in Net Pension Liability and Related Ratios – Fire and Police Retirement System............................................................................................................................ 124 Schedule of Plan Contributions - Fire and Police Retirement System .............................................................................. 126 Schedule of Changes in the Net OPEB Liability and Related Ratios ................................................................................. 127 Schedule of OPEB Plan Contributions ............................................................................................................................... 128 Schedule of OPEB Plan Investment Return ....................................................................................................................... 129 Supplementary Information
Non-Major Governmental Funds
Combining Balance Sheet .......................................................................................................................................... 132 Combining Statement of Revenues, Expenditures and Changes in Net Position ...................................................... 133 Special Revenue Funds
Combining Balance Sheet .......................................................................................................................................... 138 Combining Statement of Revenues, Expenditures and Changes in Net Position ...................................................... 140 Budgetary Comparison Schedules
Public Safety Fund .......................................................................................................... .................................... 142 Health Fund ................................................................................................................. ....................................... 143 Building Services Fund ........................................................................................................................................ 144 Sewer Construction and Maintenance Fund ...................................................................................................... 145 Underground Utilities Fund ................................................................................................... ............................. 146 Transportation Fund .......................................................................................................... ................................. 147 Library Services Fund ....................................................................................................... ................................... 148 Parking Fund ................................................................................................................. ...................................... 149 Air Quality Improvement Fund ........................................................................................................................... 150 Housing and Community Development Fund .................................................................................................... 151 Donated Fund ................................................................................................................ ..................................... 152 Capital Projects Funds
Combining Balance Sheet .......................................................................................................................................... 156 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................... 158

CITY OF PASADENA TABLE OF CONTENTS
FINANCIAL SECTION (Continued)
Permanent Funds
Combining Balance Sheet .......................................................................................................................................... 164 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................... 166 Non-Major Enterprise Funds
Combining Statement of Net Position ....................................................................................................................... 172 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................................ 173 Combining Stat
ement of Cash Flows ......................................................................................................................... 174 Internal Service Funds
Combining Statement of Net Position ....................................................................................................................... 180 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................................ 182 Combining Statement of Cash
Flows ......................................................................................................................... 184 Fiduciary Funds
Combining Statement of Net Position – Employee Benefit Trust Funds .................................................................. 192 Combining Statement of Changes in Net Position – Employee Benefit Trust Funds ................................................ 193 Combining Balance Sheet – Custodial Funds ............................................................................................................ 194 Combining Statement of Changes in Assets and Liabilities – Custodial Funds .......................................................... 195 Combined Successor Agency Funds
Combining Statement of Net Position – Private Purpose Trust Funds ..................................................................... 200 Combining Statement of Changes in Net Position – Private Purpose Trust Funds ................................................... 202 Discretely Presented Component Unit
Rose Bowl Operating Company
Combining Statement of Net Position ....................................................................................................................... 208 Combining Statement of Revenues, Expenses and Change
s in Net Position ............................................................ 209

STATISTICAL SECTION
Net Position by Component (Table 1) .............................................................................................................................. 214 Changes in Net Position (Table 2) ..................................................................................................................................... 216 Fund Balances of Governmental Funds (Table 3) ............................................................................................................. 220 Changes in Fund Balances of Governmental Funds (Table 4) ........................................................................................... 222 Assessed Value and Actual Value of Taxable Property (Table 5) ...................................................................................... 225 Direct and Overlapping Property Tax Rates (Table 6) ...................................................................................................... 226 Principal Property Taxpayers (Table 7) ............................................................................................................................. 228 Property Tax Levies and Collections (Table 8) .................................................................................................................. 229 Electricity Sold by Type of Customer (Table 9) ................................................................................................................. 230 Electricity Rates (Table 10) ............................................................................................................................................... 232 Electricity Customers (Table 11) ....................................................................................................................................... 233 Ratios of Outstanding Debt by Type (Table 12) ................................................................................................................ 234 Ratios of General Bonded Debt Outstanding (Table 13) .................................................................................................. 238 Direct and Overlapping Debt (Table 14) ........................................................................................................................... 241 Annual Comprehensive Financial Report | June 30, 2021 iii

CITY OF PASADENA TABLE OF CONTENTS
iv Annual Comprehensive Financial Report | June 30, 2021 STATISTICAL SECTION (Continued)
Legal Debt Margin Information (Table 15) ....................................................................................................................... 242 Pledged-Revenue Coverage – Governmental Activity Debt (Table 16) ............................................................................ 244 Pledged-Revenue Coverage –Business-Type Activity Debt (Table 17) ............................................................................. 246 Demographic Statistics (Table 18) .................................................................................................................................... 247 Principal Employers (Table 19) ......................................................................................................................................... 249 Full-time and Part-time City Employees by Function (Table 20) ..................................................................................... 250 Operating Indicators by Function (Table 21) .................................................................................................................... 252 Capital Asset Statistics by Function (Table 22) ................................................................................................................. 254

INTRODUCTORY SECTION
ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2021

(This page intentionally left blank)
vi

iv
January 19, 2022
To the Honorable Mayor, Members of the City Council
and the Citizens of the City of Pasadena, California:

The Annual Comprehensive Financial Report (ACFR) of the City of Pasadena, California (City) for the fiscal year ended June 30, 2021 (FY 2021) is hereby submi tted in compliance with Section 907.5 of the City Charter. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive internal control framework it established for this purpose. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable assurance, rather than absolute assurance, that the financial statements are free of any material misstatements.

This report was prepared in accordance with Generally Accepted Accounting Principles (GAAP) as set forth in the pronouncements of the Governmental Accounting Standards Board (GASB). GASB has the primary responsibility for determining accounting and financial reporting standards for state and local government entities. It is believed that the data, as presented, is accurate in all material respects, and is presented in a manner designed to fairly set forth the financial posi tion and results of operat ions of the City and its component units as measured by the financial activi ty of the various funds. The financial statements include all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs and evaluate its financial condition.

The City Charter requires an audit of the financial statements of all accounts of the City by an independent certified public accountant. This year's audit was undertaken by CliftonLarsonAllen, LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Pasadena for th e FY 2021 fairly state the City’s financial position.

The independent audit involved examining evidence, on a test basis, that supports the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall fi nancial statement presentation. The independent auditor concluded based upon the audit, that there was a reasonable basis for rendering an unmodified opinion on the City of Pasadena’s financial statements for FY 2021 and that these financial statements are fairly presented in conformity with GAAP. The inde pendent auditor’s report is presented as the first component of the financial section of this report. Under the current auditor contract, the City required the auditor to include sampling from every fund.

LETTER OF TRANSMITTAL CITY OF PASADENA

viii Annual Comprehensive Financial Report | June 30, 2021 The independent audit of the financial statements of the City was part of a broader, federally-mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report, not only on the fair presentation of the financial statements, but also on internal cont rols and compliance with legal requirements, with emphasis on those involving the administration of federal awards. The auditor’s report on internal controls and compliance will be available in the City’s separately issued Single Audit Report.

GASB requires that management provide a narrative introduction, an overview, and an analysis to accompany the basic financial statements in the fo rm of a Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed t o c o m p l e m e n t t h e M D & A a n d s h o u l d b e r e a d i n conjunction with it. The City of Pasadena’s MD&A can be found immediately following the report of the independent auditor.

GOVERNMENTAL STRUCTURE

The City was incorporated in 1886 and became a Charter City in 1901. The City operates under the powers granted by the City Charter, which dictates the respon sibilities of the City Council and the City Manager.

There are seven City Council members who are nominated and elected by district for overlapping, four- year terms. In addition, there is a citywide elected Mayor who also serves a four-year term.

The City Council is responsible for, among other things, setting policies, passing ordinances, adopting the budget, appointing committees and hiring the City's Manager, City Attorney/City Prosecutor, and the City Clerk. The City Manager is responsible for carrying out policies and ordinances of the City Council, appointing the heads of the City's departments, preparing and managing the budget, and overseeing the day-to-day operations of the City.

The City covers an area of 23 square miles in the no rthwestern portion of the San Gabriel Valley and has a 2021 population of 145,306, according to the Californi a State Department of Finance. The City is bounded on the west by the cities of Los Angeles, Gl endale, and La Cañada Flintridge; on the south by South Pasadena and San Marino; on the east by Ar cadia and Sierra Madre; and on the north by the unincorporated community of Altadena.

REPORTING ENTITY AND ITS SERVICES

This report includes all funds of the City, as well as all of its component units. Component units are legally separate entities for which the City is financially accountable. Blended component units, although legally separate entities, are, in substance, part of the City's operations and are included in this ACFR as part of the City. Accordingly, the Pasadena Public Financing Authority, Pasadena Parking Authority, the Pasadena Civic Improvement Corporation (PCIC), and the Pasade na Fire and Police Retirement System (FPRS) are reported as part of the City. The Successor Agency to the Pasadena Community Development Commission is shown as a Private Purpose Trust Fund reported in the Fiduciary Fund Section. Discretely presented component units are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the City and to differentiate their financial position, results of operations, and cash flows from those of the City . The Rose Bowl Operating Company (RBOC), the Pasadena Center Operating Company (PCOC), and th e Pasadena Community A ccess Corporation (PCAC) are discretely presented component units. Separate financial statements are also available for all three discretely presented component units. The City is a party to, and designated administrator for, two Joint

CITY OF PASADENA LETTER OF TRANSMITTAL

Annual Comprehensive Financial Report | June 30, 2021 ix Powers Authorities, the Foothill Air Support Team (FAST) and the Foothill Workforce Development Board.

These entities are accounted for in the City books, ACFR, and audited as part of the City’s audit.

The City provides a full range of municipal services including public safety (police and fire), street construction and maintenance, refuse collection, water, power, sewer co llection utilities, libraries, parks and recreation, planning and zoning, code enforcement, public health, affordable housing, career services and job training, and general administrative and support services.

BUDGETARY CONTROLS

The City adopts a comprehensive budget detailed by department and fund prior to the beginning of each fiscal year, July 1. From the effective date of the budget, funds become appropriated to the departments and component units for the objects and purposes identi fied. At any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by a motion adopted by the affirmative vote of at least five members of the City Council. The accounts of the City are maintained by line item detail or object of expenditure. The le gal level of budgetary control (the level at which management may not reassign resources or overspend appropriations) is at the departmental level within each fund. Revenues are estimated annually and mo nitored on an ongoing basis to ensure there are adequate resources to cover expenditures.

FACTORS AFFECTING FINANCIAL CONDITION

The information presented in the financial statements, is perhaps best understood when considered from the broader perspective of the current environment in which the City of Pasadena operates.

THE CURRENT ECONOMIC CLIMATE

Pasadena along with the rest of our nation, is emerging from one of the most difficult periods in recent history. For almost two-years, the COVID-19 pandemic has dominated our lives and impacted virtually everyone. As of this writing, over 18,000 Pasadena residents previously contracted COVID-19 with 373 tragically succumbing to the disease. Thankfully, as a result of protocols to reduce the transmission and the advent of safe and effective vaccines, develo ped in record time, infection rates have slowed dramatically and life is beginning to return to normal.

In addition to a staggering toll in human life, COVID-19 brought with it a worldwide economic recession resulting in record high unemployment, business closur es, and a precipitous drop in economic activity.

The City, under the leadership of the Mayor and City Council, was quick to respond in a variety of ways to support our community during a very difficult time. Some of the more notable efforts on the part of the City included:

• Adopting an eviction moratorium for residential and commercial tenants; • Rebating over $11 million in Underground Utility Surtax charges to Pasadena Water and Power electric customers and providing six-months of rate relief; • Providing over $1.7 million in funding and over 2,500 hours of direct staff support to local food banks, pantries and feeding programs;
• Coordinating the distribution of over 150,000 “grab and go” lunches to supplement Pasadena Unified School District (PUSD) feeding efforts at seven schools on weekends;

LETTER OF TRANSMITTAL CITY OF PASADENA
x Annual Comprehensive Financial Report | June 30, 2021 • Adopting an ordinance restricting commissions charged by third party food delivery services to protect local restaurants and consumers from gouging;
• Participating in the State's Great Plates Delivered program which provided 170,000 daily restaurant-delivered meals to 367 Pasadena seniors throughout the duration of the program; • Providing two rounds of grants to local businesses totaling approximately $800,000 to support payroll, lease obligations, and compliance with health protocols; • Adopting an ordinance that provides protections to hotel workers facing unemployment fluctuations due to restrictions imposed by stay at home orders; • Providing $1 million in rental assistance to aid 275 households with back rent; • Supporting outdoor dining through the use of streets, sidewalks, and parking lots; • Providing a wide range of support to local businesses including numerous webinars, newsletters and resource pages; and
• Developing and executing the “We’re Open, Keep Us Open” Shop Local campaign. The campaign garnered over 1,000,000 media impressions and over 75 businesses across the City participated in a planned social media takeover to increase awareness for the campaign.

ECONOMIC IMPACTS FROM COVID-19
The economic impact related to COVID-19 was also felt directly by the City in the form of significantly reduced revenues. Prior to that time, the City’s financial position was strong. Following several years of austerity wherein over $6 million of spending was trimmed from the General Fund Budget, voters in FY 2019 approved Measure I, a ¾ cent local sales tax measure to preserve essential City services and support much needed capital investment. Associated with Measure I was an advisory measure, Measure J, which advised the City Council to share 1/3 of the revenue derived from Measure I with the Pasadena Unified School District.

The combination of targeted budget reductions and new revenue enabled the City to build up a healthy fund balance in its General Fund and establish a Section 115 Pension Trust to pay for future pension liabilities. Nonetheless, the impact of the pandemic on General Fund Reserves should be noted:

General Fund – Fund Balance Summary
FY 2019-20 20 FY 2020-2021
Increase Increase
FY 2019 FY 2020 FY 2021 (Decrease) (Decrease)
Unassigned $19,605,899 $445,197 ($11, 293,801) ($19,160, 702) ($11,738,998) 5% Operating Reserve 12,693,700 12,692,400 11,245,600 (1,300) (1,446,800) 15% Emergency Reserve 38,081,100 42,427,200 40,441,800 4,346,100 (1,985,400) Section 115 Pension Trust 11,230,935 11,706,421 13,317,496 475,486 1,611,075 Total $81,611,634 $67,271,218 $53,711,095 ($14,340,416) ($13,560,123) The COVID-19 pandemic and associated recession came in the final quarter of FY 2020. In that short time, the City lost $6.4 million in General Fund revenu e and incurred millions in expenditures related to

CITY OF PASADENA LETTER OF TRANSMITTAL

Annual Comprehensive Financial Report | June 30, 2021 xi response efforts and protective me asures to maintain essential se rvices. Fortunately, significant underspending by City departments offset the losses for a net overall loss of $5.5 million.

As the City prepared to enter FY 2021, projected losses related to COVID-19 were estimated at $14 million in the General Fund alone. As it would turn out, several other key funds including the Off-Street Parking Fund, which accounts for activity in the City’s public parking garages, would see significant reductions in revenue as well, as economic activity faltered. Moreover, the Rose Bowl Operating Company (RBOC) and the Pasadena Center Operating Co mpany (PCOC) suffered devastating revenue reductions due to state restrictions on large-scale events.

In order to achieve a balanced budget for FY 2021, virt ually all Measure I dollars ($8.4 million) previously intended to support much needed projects in the Capital Improvement Program Budget were reprogrammed to prevent dramatic reductions in esse ntial City services. Additionally, $1.85 million in reductions, including the elimination of nine staff positions, were made in the General Fund. The PCOC was able to cover its annual operating costs including debt service obligations with cash on hand; however, it was necessary for the City’s General Fund to cover the FY 2021 debt service obligation related to the Rose Bowl Stadium, approximately $11.5 million, thereby exhausting much of the General Fund 5% Contingency Reserve.

Throughout the fiscal year, the Finance Department carefully monitored revenue and expenses, reported regularly to the City Council Finance Committee and updated the City’s General Fund Five-Year Financial Forecast. As the City approaches the end of FY 2021, the total revenues losses associated with the COVID- 19 economic recession are estimated to be as high as $55 million across all City funds. When added to the losses in FY 2020, the total estimated COVID-related economic revenue loss to the City is an estimated $70 million. In addition to this, the City has expe nded roughly $30 million over and above normal City operations as part of its response to COVID-19.

The Current State of Things

In March, Congress passed and the President signed into law the American Rescue Plan Act, a $1.9 trillion dollar economic stimulus. The Plan provides direct funding for local governments ($360 billion) along with programmatic funding for homeless assistance, rental assistance, public transit and utility assistance.

Based upon the modified Community Development Block Grant allocation method being used to allocate funding, Pasadena is expected to receive $52.2 million in direct support.

While many of the details have yet to be determined, the federal relief is very much welcome as it will enable the City to provide additional support to the community and hopefully offset some, but not all, of the economic losses incurred. Because crisis can occur at any time and take many forms, as the COVID- 19 pandemic has painfully reminded us, rebuilding the City’s financial reserves to protect essential City services against the next calamity, should be the priority.

Looking Forward

The local and national economies are realizing strong recovery in some areas, while other sectors appear to be very slow to recover, furthering the belief that a “K” type recovery/recession will continue to occur.

The travel and tourism industry is expected to take three to four years to recover, especially in areas that rely on international travel as COVID-19 cases continue to vary widely within the U.S. and across nations.

Locally, business closures, including many restaurants, may take years to recover from the economic losses of COVID-19. Due to these factors, revenues such as transien t occupancy tax, certain sales tax

LETTER OF TRANSMITTAL CITY OF PASADENA
xii Annual Comprehensive Financial Report | June 30, 2021 categories, parking, and related revenues are expected to take as long as four years to return to pre- COVID-19 levels. Additionally, accounts receivables owed to the City for utility bills, emergency medical services and other services have grown by 1,000% with utility receivables alone exceeding $8 million. The ability to collect these billings will have a direct impact on a number of funds including the General, Power, Water, Refuse and Sewer Funds. The State is implementing a program to fund $1.0 billion each of past due water and electric bills that should become effective the second half of FY 2022.

Fortunately, the City has also benefited from the upside of the recovery. Some sales tax categories, such as automobile sales and online pur chases, have been robust, property tax has remained stable, and development activity for new residential and commer cial space continues, including the opening of a Home Depot store in March 2021.

As discussed above, this past year has been particul arly challenging for the PCOC and the RBOC. Each of these entities function in a semi-autonomous fashion from City operations, and rely on revenues generated through their respective business operations to cover operating expenses and debt service obligations associated with prior capital improvements. Historically, under the direction of well-qualified boards, each has been self-reliant. However, the enormous scope of the COVID-19 pandemic and the related inability to host large-scale events has eliminated key sources of revenue, which support each operating company. In the case of PCOC, it bene fits through a longstanding arrangement whereby the City’s General Fund transfers to it roughly 2/3rd of the Transient Occupancy Tax (TOT) received by the City. However, this past year, with the sharp reduct ion in travel, even that typically reliable revenue source has dropped precipitously. In a typical year, TOT transferred by the City would make up over 40% of the PCOC’s operating budget and cover 100% of the debt service.

It should be recognized that both the PCOC and RBOC have worked hard to generate incremental revenues through small-scale events that conform to the statewide health protocols and each entity played a critical role in the City’s COVID-19 response effort including: assisting with meal support for residents; the outfitting of the convention center to serve as a possible alternate care facility for COVID-19 patients, and the Rose Bowl serving as a mass testing site along wi th housing FEMA trailers used to quarantine first responders with or exposed to COVID-19.

As restrictions on events ease and as it relates to the PCOC, hotel bookings increase, the outlook for the two operating companies will improve. Current projections indicate that while the PCOC will need to rely on its reserves to carry it through next fiscal year, by FY 2023 it should return to positive net income.

However, in regard to the RBOC, longstanding concerns about the future financial position of the Rose Bowl Stadium have been brought into stark relief by the pandemic.

It has long been understood that the Rose Bowl Stad ium faces an uncertain future. Most notably, the opening, in September 2020, of SoFi Stadium and en tertainment complex in Inglewood, CA creates new direct competition for sports, concerts, and other events. Moreover, the RBOC fiscal structure is largely dependent upon the long-term success of its anchor tenants, UCLA, and the Tournament of Roses.

In FY 2020 (the last pre-pandemic ye ar), RBOC’s net income related to these anchor tenants decreased more than 30% and attendance decreased more than 60% compared to the figure five-years prior (FY 2015).

The FY 2022 Operating Budget assumes that the City’s General Fund will need to fund $10 million of the $12.5 million annual debt service obligation associated with the Rose Bowl, with the RBOC making up the

CITY OF PASADENA LETTER OF TRANSMITTAL
Annual Comprehensive Financial Report | June 30, 2021 xiii $2.5 million balance. In order to avoid making significant reductions to existing City services, these funds will need to come from General Fund reserves, as was the case in the current fiscal year. Most concerning, however, is the fact that in future years (FY 2023 and beyond), while the RBOC anticipates revenues to return to pre-pandemic levels, it projects that they will not be sufficient to cover increasing debt service payments and other operating costs. The RBOC’s curre nt projections indicate that the gap in revenues, over the next five-years, will range from between $5.4 - $7.7 million per year, and that shortfalls will continue into the future. Additionally, the RBOC projects that the unfunded capital improvement needs of the stadium over the next five-years may exceed $12 million per year.

To the extent the RBOC is unable to generate sufficient income to cover debt service, operating expenses and needed capital investment, the burden will fall on the City’s General Fund. As mentioned above, in FY 2021 and as adopted for FY 2022, these funds were taken from General Fund reserves. Continuing to draw down the City’s reserves on an ongoing basis to support the Rose Bowl is not a viable long-term solution, as it would deplete the City’s reserves in just a few short years leaving no financial resources in the event of an emergency or significant economic downturn.

Consequently, over the term of the next fiscal year, actions must be taken to address the ongoing financial obligations associated with the Rose Bowl Stadium. Part of the solution might come from new initiatives undertaken by the RBOC, and in fact, analysis is currently underway to explore the viability of numerous options. The growth in General Fund revenues through additional hotels or other economic development projects could also help address the challenge while helping to guard against reductions in essential City services that would otherwise be necessary to cover the ongoing obligations related to the stadium.

While the financial future of the Rose Bowl has been the subject of discussion for a number of years, given the current reality, for the first time, the General Fund Five-Year Financial Forecast includes projected contributions to the RBOC on an ongoing basis. Of note, these projected cont ributions only take into $-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
FY 2021 FY 2023 FY 2025 FY 2027 FY 2029 FY 2031 FY 2033 FY 2035 FY 2037 FY 2039 FY 2041 FY 2043 Operating Company Debt Service

PCOC RBOC

LETTER OF TRANSMITTAL CITY OF PASADENA
xiv Annual Comprehensive Financial Report | June 30, 2021 account debt service requirements and do not incl ude amounts that may be considered necessary for capital improvements, as discussed above. As shown below, these projections indicate a growing deficit position for the General Fund unless a solution to address the Rose Bowl obligations is found.

General Fund Five-Year Forecast
The financial challenge associated with the Rose Bowl is as significant as anythi ng th e City has faced in decades and until the matter is resolved, fiscal prudence is required more than ever. Nevertheless, the City exists to provide services responsive to the needs of its residents and business community.

Accordingly, the Adopted FY 2022 Operating Budget does include two proposed enhancements to address quality of life issues, as well as the proposed addition of two new staff positions to better address workload and risk management efforts.

FISCAL YEAR 2021 ACCOMPLISHMENTS
While it is critically i
mportant that the City main tain strong fiscal health and address its multiple infrastructure-related issues, it must also take time to acknowledge positive improvements. Examples of FY 2021 accomplishments include:
• Adoption of a balanced budget for the ninth consecutive year, consistent with the City Council’s goal to maintain fiscal responsibility and stability;
• Implemented fifth year of five-year program of tiered increases to City’s minimum wage and wage enforcement program;
• Successfully educated the public about the merits of Measure P: The City Services Protection Measure, which maintained the longstanding utility transfer to the General Fund which is approximately $18 million annually;
• Obtained trial court victory against a challenge to the annual Power Fund transfer to the General Fund, saving the City $18 million per year;

CITY OF PASADENA LETTER OF TRANSMITTAL
Annual Comprehensive Financial Report | June 30, 2021 xv • The entire City staff provided leadership and response to the COVID-19 pandemic. The Emergency Operation Center (EOC) was immediately opened and continues in operation. During the peak of the pandemic, all City essential services were provided; • Thirty-nine eligible business were awarded $10,000 grants as part of the Small Business Relief Grant Program;
• Managed a second business grant program, awarding 59 micro businesses with $7,500 grants; • Actively worked with 21 restaurants for the Great Plates Delivered, delivery service for at-risk seniors;
• Maintained a current General Obligation Bond rating of AAA, the highest rating given by Standard and Poor’s and AA+ by Fitch rating agencies;
• Maintained ISO Class 1 Public Protection Certification rating, the highest rating given nationally; • Assisted in 18 strike teams and fire line deployments as part of the California Fire and Rescue Mutual Aid System;
• Rapidly expanded technology required for approximately 30 percent of the City workforce to telecommute effectively to maintain City services;
• Provided support for public meetings to be conducted virtually; • Updated and enhanced the Public Health COVID-19 dashboard with vital statistics; • Implemented curbside pickup service at Centra l Library, Allendale, Hastings, La Pintoresca, Lamanda Park, Linda Vista, San Rafael, and Santa Catalina Branch Libraries; • In response to food insecurity issues for Pasa dena residents caused by the pandemic, the City acted to:
o Coordinate the allocation of $572,000 to ten food banks, o Administered the state’s Great Plates De livered, meal program to deliver 170,000 restaurant delivered meals,
o Provided funding and distributed 152,600 gr ab-and-go lunches each weekend at seven PUSD sites from March 28 to September 13,
• Managed day-to-day operations of 50 FEMA trailers at the Rose Bowl for public safety employees who needed to quarantine due to COVID-19 exposures;
• Performed over 46,000 building inspections for commercial and residential construction; • Issued over 8,900 construction related building permits; • Investigated more than 11,000 confirmed COVID-19 cases, over 650 probable COVID-19 cases, more than 100 outbreaks, and over 400 different worksites; • The Citizen Service Center answered over 74,000 calls (50% within 30 seconds); • Secured over $700,000 in IRS refunds for applicable alternate fuel tax incentive claims; • Resurfaced approximately five miles of local streets and repaired over 36,000 square feet of sidewalks;
• Awarded Tree City
USA designee and Tree City Growth award for 31st and 21st year respectively; • To address COVID-19 related impacts, the City in stalled over 20,000 square feet of on-street dining;
• During the pandemic, kept the City’s public transit services available for essential trips; provided 900,000 public transit trips on Pasadena Transit and Dial-A-Ride; delivered 3,400 Food Bank deliveries directly to individuals; and provided 40,000 single-use masks to the public on-board buses;
• Substantially completed extensive repairs to Gas Turbine (GT) 2. The project also includes control system retrofits for GT-1 and GT -2, which restores 22MW of loca l generation to improve system reliability;

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xvi

LETTER OF TRANSMITTAL CITY OF PASADENA
• All City departments continued to provide quality, reliable service during the COVID-19 response in addition to many additional tasks and services required during the pandemic; and • The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financ ial Reporting to the City of Pasadena for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2020. This was the 22nd consecutive year that the govern ment has achieved th
is prestigious award. In order to be
awarded a Certificate of Achievement, a govern ment must publish an easily readable and efficiently organized Annual Comprehensive Financ ial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one-year. We believe that our current Annual Comprehensive Financial Report continues to meet the Certific ate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

The twenty-nine accomplishments listed above ar e just a sample of the hundreds of FY 2021 accomplishments, which are listed by department in the FY 2022 Adopted Operating Budget.

CONCLUSION
Under the leadership of the Mayor and City Council and with prudent financial management, the City of Pasadena has successfully addressed the unique challenges it has faced since the beginning of the pandemic with no reduction in the quality of servic es provided to the community. The FY 2021 Annual Comprehensive Financial Report illustrates the City’s mission to deliver exemplary municipal services responsive to our entire community and consistent with our history, culture, and unique character.

Respectfully submitted,
________________________
Matthew E. Hawkesworth
Director of Finance
Annual Comprehensive Financial Report | June 30, 2021 xvii

CITY OF PASADENA
City Officials

CITY COUNCIL
M a y o r V i c t o r M . G o r d o
Vice Mayor (District 7) Andy Wilson
Councilmember (District 1) Tyron A. L. Hampton
Councilmember (District 2) Felicia Williams
Councilmember (District 3) John J. Kennedy
Councilmember (District 4) Gene Masuda
Councilmember (District 5) Jessica C. Rivas
Councilmember (District 6) Steve Madison

APPOINTED OFFICIALS
C i t y M a n a g e r S t e v e M e r m e l l
C i t y A t t o r n e y M i c h e l e B e a l B a g n e r i s C i t y C l e r k Ma r k J o m s k y

EXECUTIVE LEADERSHIP TEAM
Assistant City Manager Julie A. Gutierrez
Assistant City Manager Nicholas Rodriguez
Director of Finance Matthew E. Hawkesworth
Director of Housing William K. Huang
Director of Human Resources
and Career Services Jennifer Curtis
Director of Parks, Recreation &
Community Services Brenda Harvey-Williams
Director of Libraries & Information Services Michelle Perera Chief Information Officer Phillip Leclair
Director of Planning and Community
Development David Reyes
Chief of Police John E. Perez
Director of Public Health Ying Ying Goh
Director of Public Works (Acting) Kris Markarian
Director of Transportation Laura Cornejo
General Manager of Water and Power Gurcharan Bawa
Public Information Officer Lisa Derderian
Fire Chief Chad Augustin

OPERATING COMPANY EXECUTIVES
Chief Executive Officer, Pasadena Center
Operating Company Michael Ross
General Manager, Rose Bowl Operating
Company Darryl Dunn
Executive Director/Chief Executive Officer,
Pasadena Community Access Corporation George Falardeau

INTRODUCTORY SECTION CITY OF PASADENA
xviii Annual Comprehensive Financial Report | June 30, 2021

CITY OF PASADENA
Organization Chart
June 30, 2021
Transportation

LAURA CORNEJO
Water & Power

GURCHARAN BAWA
Planning &
Community
Development

DAVID REYES
Police
JOHN E. PEREZ
Housing
WILLIAM K. HUANG
Human Resources

JENNIFER CURTIS
Parks, Recreation &
Community Services
BRENDA HARVEY‐

WILLIAMS
Public Health

YING YING GOH
Fire

CHAD AUGUSTIN
Public Works

KRIS MARKARIAN
(ACTING)
Finance
MATTHEW E.

HAWKESWORTH
City Attorney/
City Prosecutor

MICHELE BEAL

BAGNERIS
Rose Bowl
Operating Company

DARRYL DUNN
Assistant City
Manager
NICHOLAS G.

RODRIGUEZ
Pasadena Center
Operating Company

MICHAEL ROSS
Pasadena Community
Access Corporation

GEORGE FALARDEAU
Assistant City
Manager
JULIE A. GUTIERREZ
Information
Technology

PHILLIP LECLAIR
City Clerk

MARK JOMSKY
Citizens
of Pasadena
Mayor &
City Council
City Manager

STEVE MERMELL
Libraries &
Information
Services

MICHELLE PERERA
Annual Comprehensive Financial Report | June 30, 2021 xix

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pasadena
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO

CITY OF PASADENA
Annual Comprehensive Financial Report
Year Ended June 30, 2021
The Government Finance Officers
Association of the United States and
Canada (GFOA) awarded a Certificate
of Achievement for the Excellence in
Financial Reporting to the City of
Pasadena for our Annual Comprehensive
Financial Report for the fiscal year
ended June 30, 2020.

In order to be awarded a Certificate
of Achievement, a government
must publish an easily readable
and efficiently organized Annual
Comprehensive Financial Report. This
report must satisfy both generally
accepted accounting principles and
applicable legal requirements.

A Certificate of Achievement is
valid for a period of one year only.

We believe our current Annual
Comprehensive Financial Report
continues to meet the Certificate of
Achievement Program requirements,
and we are submitting it to GFOA to
determine its eligibility for another
certificate.
xx Annual Comprehensive Financial Report | Ju ne 30, 2021

FINANCIAL SECTION
ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2021

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xxii

CliftonLarsonAllen LLP
CLAconnect.com

CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member-firm-disclaimer for details.

INDEPENDENT AUDITORS’
REPORT
To the Honorable City Council
of the City of Pasadena
Pasadena, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggr egate discretely presented compone nt units, each major fund, and the aggregate remaining fund information of the City of Pasadena, California (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statemen ts, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the Unit ed States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misst atement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express opi nions on these financial statements based on our audit. We did not audit the financial statements of the Pasadena Fire and Police Retirement System, a Fiduciary Pension Trust Fund of the City of Pasadena, which repr esent 18.39 percent, 23.23 percent, and 6.53 percent, respectively, of the assets, fund balance/net position, and revenues/additions of the aggregate remaining fund information opinion unit. Those st atements were audited by other auditors whose report has been furnished to us, and our opinion, in sofar as it relates to the amounts included for the Pasadena Fire and Police Retireme nt System, a Fiduciary Pension Trust Fund of the City of Pasadena is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements , whether due to fraud or error. In making those risk assessments, the auditors consider in ternal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expre ssing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion.

Auditors’ Responsibility (Continued)
An audit also includes evalua ting the appropriateness of a ccounting policies used and the reasonableness of significant accounting estimates ma de by management, as well as evaluating th e
overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions
In our opinion, based on our audit an d the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activit ies, the aggregate discretely pr esented component units, each major fund, and the aggregate remaining fund information of the City of Pasadena, California, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally ac cepted in the United States of America.

Emphasis of Matter
As discussed in Note 22 to th e financial statements, the City implemented the Statement of Governmental Accounting Standa rds (GASB Statement) No. 84, Fiduciary Activities , in fiscal year 2020-2021, which resulted in a restatement. Our opinions are not modified with respect to this matter.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of Amer ica require that the Management’s Discussion and Analysis, the Budge tary Comparison Schedules - General and Major Special Revenue Funds, the schedules of changes in net pension liability a nd related ratios and the schedules of plan contributions for the City’s pens ion plans, the schedule of changes in the net other post-employment benefit (OPEB) liability and related ratios, the schedule of OPEB plan contributions, and the schedule of OPEB plan inve stment returns, identified as Required Suppl ementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements.

Such information, although not a part of the ba sic financial statements , is required by the Governmental Accounting Standards Board, who consid ers it to be an essent ial part of financial reporting for placing the basic fi nancial statements in an appr opriate operational, economic or historical context. We and the ot her auditors have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the me thods of preparing the information and comparing the information for consistency with management’s responses to our inquiri es, the basic financial statements, and other knowledge we obtained during our audit of the ba sic financial statements. We do not express an opinion or provide any assurance on the RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2

Other Matters (Continued)
Other Information
Our audit was conducted for the pur pose of forming opinions on th e financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual non-major fund financial statements and schedules (s upplementary information), and statistical section, as listed in the table of conten ts, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

Such information has been subjected to the auditi ng procedures applied in the audit of the basic financial statements and certain additional pro cedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in rela tion to the basic financial statements as a whole.

The introductory and statistical sect ions have not been subjected to the auditing procedures applied in the audit of the basic financial st atements and, accordingly, we do not express, an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 19, 2022, on our consideration of the City ’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regula tions, contracts and gran t agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on comp liance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
January 19, 2022
3

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4

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2021 5 MANAGEMENT’S DISCUSSION AND ANALYSIS

As management of the City of Pasadena, we offer this narrative overview and analysis of the financial activities of the City of Pasadena for the fiscal year ended June 30, 2021 (FY 2021). We encourage readers to consider the information presented here in conjunction with additional information that has been furnished in the letter of transmittal, which can be found on pages vii-xvii of this report.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the City of Pasadena’s basic financial statements. The City of Pasadena’s basic financial statements are comprised of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the basic financial statements. This report also contains other required supplementary information.

Government-wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the City of Pasadena’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Pasadena is improving or deteriorating.

The statement of activities presents the most recent fiscal year changes in the City’s net position. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.

Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, e.g., uncollected taxes and earned but unused vacation leave.

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues ( governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities). The governmental activities of the City of Pasadena include general government, public safety, transportation, utility, sanitation, health, culture and leisure, and community development. The business-type activities of the City of Pasadena include electric, water, refuse, parking, and telecommunication operations.

The basic government-wide financial statements can be found on pages 20-23 of this report.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objective. The City of Pasadena, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental funds financial statements focus on near-term inflows and outflows of spendable resources , as well as on balances of spendable resources available at the end of the fiscal year. Such informatio n may be useful in evaluating a government’s near-term financing requirements.

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA
6 Annual Comprehensive Financial Report | June 30, 2021 Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statem ents. By doing so, readers may better u nderstand the long-term impact of the government’s near-term financing decisions. Both the gove rnmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City of Pasadena maintains thirty-one individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, the Project Management Capital Project Fund, the General Debt Service Fund, and the Housing Successor Fund, all four of which are considered to be major funds. Data from the other twenty-seven governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.

The City of Pasadena adopts an annual appropriated budget for its General Fund and Special Revenue Funds. Budgetary comparison statements have been provided for the General Fund and Special Revenue Funds to demonstrate compliance with this budget.

The basic governmental fund financial statements can be found on pages 24-27 of this report.

Proprietary Funds
The City of Pasadena maintains two di fferent types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its electric, water, refuse, parking, and telecommunication operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City of Pasadena uses internal service funds to account for its computing and communication, building maintenance, fleet maintenance, fleet replacement, benefits, workers’ compensation, general liability, and 311 call center services. Because each of these services predominantly benefits governmental rather than busines s-type functions, they have been include d within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as th e government-wide financial stat ements, only in more detail.

The proprietary fund financial statements provide separate information for the Light and Po wer, Water, and Off-Street Parking Funds, each of which are considered to be major funds of the City of Pasadena. Conversely, each of the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Data from the other two proprietary funds are combined into a single, aggr egated presentation. Individual fund data for each of these non-major proprietary funds is provided in the form of combining statements elsewhere in this report.

The basic proprietary fund financial statements can be found on pages 28-35 of this report.

Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefits of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement, because the resources of those funds are not available to support the City of Pasadena’s own programs. The activities of th e Successor Agency to the Pasadena Community Development Commission are also reported with the City’s fiduciary funds as a private purpose trust fund. Individual fund data for each of these fiduciary funds is provided in the form of combining statements elsewhere in this report. The accounting used for fiduciary funds is much like that used for proprietary funds.

The basic fiduciary fund
financial statements can be found on pages 36-37 of this report.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS
Annual Comprehensive Financial Report | June 30, 2021 7 Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government- wide and fund financial statements. The notes to the basic financial statements can be found on pages 43-110 of this report.

Other Information
In addition to the basic financial statements and ac companying notes, this repo rt also presents certain required supplementary information (RSI) concerning budgetary practices and budget-to-actual comparisons for the general fund and the major special revenue funds. Additional RSI includes pension and Other Postemployment Benefits (OPEB) information on net pension and OPEB liabilities and plan contributions. RSI can be found on pages 113-129 of this report.

The combining statements referred to earlier in connection wi th non-major governmental funds and internal service funds are presented immediately following the required supplementar y information. Combining and individual fund statements and schedules can be found on pages 132-209 of this report.

FINANCIAL HIGHLIGHTS
New Significant Accounting Standards Implemented
In FY 2021, the City adopted one new statement of financial accounting standards issued by the Government Accounting Standards Board (GASB) that relates to various accounting matters, Statement No. 84, Fiduciary Activities (GASB 84).

GASB 84 requires a review and identification of all current activities recorded in the fiduciary funds to determine if they meet the revised criteria of a fiduciary activity. A fiduciary activity generally involves funds held by the City in trust or on behalf of a third party where the City does not have administrative involvement in the use of those funds. GASB 84 requires all Custodial Funds present a Statement of Changes in Fiduciary Net Position.

Funds formerly classified as agency type funds are now reported under the new custodial fund classification. As agency type funds, amounts now classified as Net Position Held in Custody had been reported as payables, deposits, or other liabilities.

The Employment Benefit OPEB Trust Fund previously was included in the City of Pasadena reporting entity as an Employee Benefit Trust Fund. GASB 84 clarified that this program does not meet the requirements to include within the City’s financial statements, and so it is henceforth excluded from presentation as a fund in this Annual Comprehensive Financial Report.

Restatement of Beginning Net Position and Fund Balances As disclosed in Note 22 on page 110, to implement GASB 84, the beginning net positions of the Custodial Funds were restated and decreased to a net deficit by $1,281,967.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Pasadena, assets and deferred outflows exceeded liabilities and deferred inflows by $1,014 million at the close of the most recent fiscal year.
$955 million of the City of Pasadena’s net position reflect its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related outstanding debts used to acquire th ose assets. The City of Pasadena uses these capital assets to provide services to citizens; consequently, these assets are not available for future spendi ng. Although the City of Pasadena’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since th e capital assets themselves cannot be used to liquidate these liabilities.

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA
8 Annual Comprehensive Financial Report | June 30, 2021 City of Pasadena’s Net Position (in millions)
2021 2020 2021 2020 2021 2020
Current and other assets 368.9$ 369.50 491.5 496.4 860.4 865.9$ Capital assets 516.0 513.1 809.3 787.8 1,325.3 1,300.9 Total Assets 884.9 882.6 1,300.8 1,284.2 2,185.7 2,166.8 Deferred outflows 109.5 108.3 17.7 16.1 127.2 124.4 Long-term debt outstanding 294.7 289.2 310.3 316.4 605.0 605.6 Net pension liability 422.1 410.9 91.3 87.6 513.4 498.5 Other liabilities 97.8 80.8 60.4 60.4 158.2 141.2 Total Liabilities 814.6 780.9 462.0 464.4 1,276.6 1,245.3 Deferred inflows 19.8 19.9 2.4 4.3 22.2 24.2 Net position:

Net investment in
capital assets 468.0 470.7 486.9 458.6 954.9 929.3 Restricted 82.1 84.0 126.7 128.2 208.8 212.2 Unrestricted (390.1) (364.6) 240.5 244.8 (149.6) (119.8) Total Net Position 160.0$ 190.1 854.1 831.6 1,014.1 1,021.7$ Governmental Activities Busi ness-Type Activities Total A portion of the City of Pasadena’s net position, $208.8 million or 20.6 per cent represents resources that are subject to
external restrictions on how they may be used. The remaining balance is a deficit in unrestricted net position of, $149.6 million, or 14.8 percent is for unr estricted uses in accordance with finance-related legal requi rements. This deficit reflects liabilities which exceed assets on hand, and is related to implementation of GASB 68 and GASB 75 regarding Pension Plan and OPEB reporting.

At the end of FY 2021, the City of Pasadena is able to report positive balances in all categories of net position for the government as a whole except for unrestricted net position.

During FY 2021, the primary government’s net position decrea sed by $7.6 million. Approxim ately $30.1 million of this is a decrease in the City’s governmental acti vities, and $22.5 million of this increase is in the City business-type activities. The decrease in the governmental activities reflects increases in spending, offset by decreases in revenues. The increase in business-type activities is the continuance of positive trend in increased revenues and this year’s modest increases in expenses.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2021 9 City of Pasadena’s Changes in Net Position (in millions)

2021 2020 2021 2020 2021 2020
Revenues:

Program Revenues:

Charges for services 66.6 $ 85.3 314.8 303.7 381.4 389.0$ Operating grants and contributions 60.8 56.8 2.8 1.8 63.6 58.6 Capital grants and contributions 9.4 36.7 4.2 2.9 13.6 39.6 General revenues:

Taxes:

Property taxes, levied for
general purpose 76.6 70.7 - - 76.6 70.7 Sales taxes 62.3 57.5 - - 62.3 57.5 Utility users' tax 27.0 27.0 - - 27.0 27.0 Other taxes 23.2 28.5 5.7 6.1 28.9 34.6 Other revenues 27.9 29.1 1.0 10.9 28.9 40.0 Miscellaneous revenues 3.1 7.7 2.9 3.0 6.0 10.7 Total revenues 356.9 399.3 331.4 328.4 688.3 727.7 Expenses:

General government 72.8 67.4 - - 72.8 67.4 Public safety 148.3 152.9 - - 148.3 152.9 Transportation 48.6 55.4 - - 48.6 55.4 Culture and leisure 45.3 37.2 - - 45.3 37.2 Community development 57.4 52.0 - - 57.4 52.0 Interest and other fiscal charges 6.5 6.4 - - 6.5 6.4 Electric - - 196.4 197.1 196.4 197.1 Water - - 63.9 59.0 63.9 59.0 Other expenses 24.4 26.1 32.3 34.3 56.7 60.4 Total expenses 403.3 397.4 292.6 290.4 695.9 687.8 Increase (decrease) in net
position before transfers (46.4) 1.9 38.8 38.0 (7.6) 39.9 Transfers 16.3 14.3 (16.3) (14.3) - - Increase (decrease) in net position (30.1) 16.2 22.5 23.7 (7.6) 39.9 Net position at beginning of year 190.1 173.9 831.6 807.9 1,021.7 981.8 Net position at end of year 160.0$ 190.1 854.1 831.6 1,014.1 1,021.7$ Governmental Activities Business-Type Activities Total
City of Pasadena's Changes in Net Position (in millions)

Governmental Activities

Governmental activities decreased City of Pasadena’s net position by $30.1 million or 15.85 percent of the net position. Key elements of this decrease are a combination of factors as follows:

The revenue components of governmental activities decreased by $42.4 million or 10.6 percent from prior year revenues.

The following categories showed changes: operating grants and contributions increased by $4.0 million, property taxes increased by $5.9 million, and sales taxes increased by $4.8 million. Charge s for services decrea sed by $18.7 million, capital grants and contributi ons decreased by $27.3 million, other taxes decreased by $5.3 million, other revenues decreased by $1.1 million and miscellaneous revenue decreased by $4.7 million.

• Operating grants and contributions in creased by $4.0 million pr imarily due to the CARES Act funding of $1.8 million in FY 2021. This funding was related to the pandemic. Impact fees increased by $1.5 million.

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA
10 Annual Comprehensive Financial Report | June 30, 2021 • Property taxes increased by $5.9 million due to
appreciation of property value in Pasadena.
• Sales taxes increased by $4.8 million. Regular sales tax increased by $2.9 million and Measure I sales tax increased by $1.9 million.
• Charges for services decreased by $18.7 million including changes in the following categories:
o $7.1 million decrease in rental income as a result of the ground lease revenue received as part of the Concord property sale in FY 2020;
o $2.7 decrease in million in billable services as a result of a reduction in outside events; o $2.6 decrease parking citations as a result of temporary modifications to the City’s parking policies due to the pandemic;
o $1 million decrease in traffic reduction impact fees; and o $0.9 million decrease in emergency medical aid response (ground ambulance service) revenues. • Capital grants and contributions decreased by $27.3 million. The change was attributable to the FY 2020 sale of Concord property. The City received the property as a contribution, and subsequently sold it in May 2020. The transaction resulted in $2 7.5 million of developer contribution upon execution of a quit claim deed turning improvements over to the City just prior to the sale.
• Other taxes decreased by $5.3 million mainly due to the following categories:
o $6.8 million decrease in transient occupancy taxes, as the hospitality industry was heavily impacted by the pandemic;
o $2.0 million decrease in construction taxes due to construction project bein g negatively impacted by the pandemic;
o The decrease is offset by the $4.1 million increase in un derground utility surtax in. The City resumed collection of the surtax in FY 2021 after having been discontinued in FY 2020; • Other revenues decreased by $0.1 million including changes in the following categories:
o $5.7 million decrease in investment earnings;
o $3.0 million increase in intergovernmental revenues; and o $1.6 million increase in motor vehicle in-lieu revenues. • Investment earnings decreased by $5.7 million due to unfavorable market conditions caused by the pandemic on overall investment instruments.
• Miscellaneous revenue decreased by $4.7 million due to a decrease of $2.3 million in gain on sale of capital
assets in relation to the Concord sale in the prior fiscal year.

The expense components of governmental activities increased by $5.9 million or 1.48 percent. The changes in expenses were:
general government increased by $5.4 million, other expenses decreased by $1.7 million, public safety decreased by $4.6 million, community development decreased by $5.4 million, and transportation decreased by $6.8 million. The other categories have a net increase of $8.1 million.
• General government expenses increased by $5.4 million or 8.0 percent. There was $0.6 million more in sales taxes that the City passed to Pasade na Unified School District (PUSD) according to Measur e J, a $0.7 million decrease in general liability insurance and benefit expe nses, and $2.1 million more in other general expenses due to the pandemic.
• Other expenses decreased by $1.7 millio n, including $5.9 million decrease in utility expenses and $2.1 million increase in health expenses. The City suspended collection of the surtax in April 20 20 and provided a direct rebate of the surtax paid by each customer of Pasadena Water and Power during the 24 months prior to April 2020. Therefore, the net expense due to light and powe r surtax rebate was $5.9 m illion in FY 2021. The $2.1

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS
Annual Comprehensive Financial Report | June 30, 2021 11 million increase in health expenses was attributable to acti vities related to COVID-19 response, including response management, threat mitigation and enforcement. • Public safety expenses decreased by $4.6 million or 3.0 percent mainly due to: $5.2 million decrease in the City’s GASB 68 pension expenses, $2.4 million increase in City’s GASB 75 OPEB expenses, and $1.1 million decrease in general liability insurance and benefit expenses for both the police and fire departments. • Community development expenses in creased by $5.4 million or 10.3 perc ent mainly due to: $0.7 million decrease in the City’s GASB 68 pension expenses, $0.6 million increase in City’s GASB 75 OPEB expenses, and $0.1 million decrease in general liability insurance and benefit expenses. • Transportation expenses decreased by $6.8 million, mainly due to: $1.0 m illion decrease in the City’s GASB 68 pension expenses, $0.7 million increase in City’s GASB 75 OPEB expenses, and $0.6 million decrease in general liability insurance and benefit expenses.
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
Program Revenues and Expenses - Governmental Activities Program Revenue
Expenses

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA
12 Annual Comprehensive Financial Report | June 30, 2021 Business-Type Activities
Business-type activities increased the City of Pasadena’s net position by $22.5 million. Key elements of this year’s increase are as follows:
• Net income/(loss) of the Light and Power, Water, Off-Str eet Parking, and Non-Major Enterprise Funds were $17.6 million, $9.8 million, ($2.7) million, and ($2.2) million, respectively. • Electric charges for services increased $4.4 million or 2.0 percent from the prior fiscal year. • Electric expenses decreased $0.25 million or 0.1 percent from the prior year. The increase in commercial and general operating expenses was offset by a decrease in production, transmission and distribution expenses. • Water charges for services increased $8.8 million or 14.1 perc ent over the prior year main ly due to an increase in retail water sales within City limits.
• Water expenses increased $5.0 million or 9.1 percent from the prior year mostly due to increased production expenses.

Charges for services

18.66%
Operating grants
and contributions

17.03%
Capital grants and
contributions

2.65%
Property taxes,
levied for general
purpose

21.46%
Sales taxes

17.46%
Utility users taxes

7.55%
Transient occupancy
taxes

1.76%
Other taxes

4.74%
Motor vehicle in-lieu

6.12%
Other
intergovernmental

1.00%
Investment earnings

0.71% Other

0.87%
Revenues by Source - Governmental Activities

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2021 13 • Off-Street Parking operating revenues decreased $3.1 million or 27.9 percent, and expenses decreased $2.2 million or 15.5 percent mostly due to the pandemic.

• Off-Street Parking net loss of $2.7 million was primarily a result of pandemic reduced parking activity and suspended enforcement.

$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
Program Revenues and Expenses - Business-Type Activities Program Revenues
Expenses
Charges for services

95.0%
Operating grants
and contributions

0.8%
Capital grants and
contributions

1.3%
Franchise taxes

1.7%
Investment
earnings

0.3%
Other

0.9%
Revenues by Source - Business-Type Activities

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA
14 Annual Comprehensive Financial Report | June 30, 2021 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City of Pasadena uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds
The focus of the City’s governmental funds is to provide information on near-ter m inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Ci ty of Pasadena financing re quirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

Governmental Funds report the differenc e between their assets and liabilities as fund balance, which is divided into nonspendable, restricted, committed, assigned, and unassigned portions. City Council may commit a portion of the fund balance by formal action, per the current policy of increasing the commitment up to 20 percent of the General Fund annual appropriations. The 20 percent is comprised of 15 percent General Fund Emergency Contingency and 5 percent General Fund Operating Reserve. On June 21, 2021, the City Council committed the full 15 percent or $40,441,800 for the FY 2021 Emergency Contingency Reserve and up to 5 percent or $13,480,600 for Operating Reserve. The City Operating Reserve was $11,245,600 as a result of the General Fund financial position at the end of FY 2021.

At the end of FY 2021, the City’s governmental funds reported combined ending fund balances of $276.1 million, a decrease of $16.9 million in comparison with the prior year. The nons pendable fund ba lance of $15.2 million represents assets generated by prepayments, permanent trust fund balances and re ceivables in funds, net of a llowances. The restricted fund balance of $83.7 million represents resources that are subject to externally enforceable legal restrictions, such as the restrictions on the use of Special Revenue funding and Capital Improvement contracts. The committed fund balance of $163.0 million represents the use of resources constrained by limitations the City imposes upon itself through decisions made by the City Council. The assigned fund balance of $33.3 million designa tes the portion of fund balance that reflects the City’s intended use of resources. The unassigne d fund balance of ($19.1) million represents the deficit amount of that nonspendable, restricted, committed, and assigned in excess of total fund balance.

The General Fund is the chief operating fund of the City of Pasadena. At the end of FY 2021, total fund balance equaled $99.1 million, versus $107.6 million in the prior year. The fund balance decrea sed by $8.5 million or 7.9 percent, during FY 2021.

Key factors for this change are as follows:

Total revenues decreased by $12.4 million due to decreases in th ree categories of revenue and increases in two categories, as explained below:
• Taxes increased by net $1.1 million primarily due to an incr eases of $5.8 in property taxes. Sales tax increases by $4.7 million, while transient occupancy tax revenue decreased by $6.8 million and co nstruction tax decreased by $2.0 million. The other taxes had a net decrease of $0.6 million. The decreases were pandemic driven. • Rental income decreased by $6.8 million mainly due to $7.1 million of the ground lease revenue received as part of the Concord property’s sale in FY 2020.
• Intergovernmental revenues increased by $2.4 million, prim arily due to $1.8 million rece ived in CARES Act funding and an increase of $1.1 million in motor vehicle in-lieu tax. There were decreases of $0.5 million related to other grand funding. There was a decrease of $0.4 million in revenues received from the State of California. • Charges for services decreased by $4.0 million as primarily due to a decreas e of $1.5 million in police billable services
due to the reduction in outsid e jobs events. There was a decrease of $0.6 million in Rose Bowl billable services as result of cancelled Rose Bowl events due to the pa ndemic. Emergency medical aid response (ground ambulance services) revenue decreased by $0.9 million. Utility billing late fees decreased by $0.8 million.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS
Annual Comprehensive Financial Report | June 30, 2021 15 • Fines and forfeits decreased by $3.0 million, primarily due to a decrease of $2.2 million in parking citations as a result of temporary modifications to the City’s parking polices as a result of the pandemic. • The remaining differences were smaller and covered several categories: investment earnings down by $0.8 million, licenses and permits down by $0.6 million, and miscellaneous revenues down by $0.7 million.

Total expenditures decreased by $12.0 million or $4.5 percent. Three of the six components increased as follows: $7.2 million in culture and leisure, $0.14 million in capital outlay, and $0. 01 million in public safety. General government decreased by $9.6 million, $9.3 million in transportation, and $0.53 million in community development. • Culture and leisure increased by $7.2 million mainly due to the interdepartmental reorganization between the Public Works Department and the Human Services and Recreation Department. The Parks and Natural Resources (PNR) operations of Public Works Department transferred to the Human Services and Recreation Department to realign each department’s duties to improve service delivery in FY 2020. Public Works is classified under the transportation expenditure function, and Human Services and Recreation under the culture and leisure expenditure function.

Concurrently with this transfer, the Human Services and Recreation Department’s name changed to Parks, Recreation & Community Services Department (PRCS) to more accurately reflect and describe the department duties. PRCS distributed $2.9 million of meals to City of Pasadena seniors and other eligible residents during the pandemic. In addition, due to the pandemic, the City received less transient occupancy taxes during FY 2021. • General government expenditures decreased by $9.6 million mainly due to the contributions of $23.1 million from the City to the Fire and Police Retirement System (FPRS) in the prior year. Related to the sale, there was a one-time allowance made for uncollectible notes receivable, and thereby a recognition of bad debt of $4.8 million in the prior year.
• Transportation expenditures decreased by $9.3 million mainly due to the in terdepartmental reorganization as described under the increase of expenditures in culture and leisure above. In addition, the Tournament of Roses parade was canceled on January 1, 2020, as well as numerous Rose Bowl events during FY 2021, causing a decrease of $0.67 million in transportation expenditures.

In FY 2021, the net General Fund transfer-out decreased by $11.9 million due to the following one-time transfers made in the prior year: (1) $5 million to the General Liability Fund, (2) $4.5 million to the Printing Services Fund to close the fund, and (3) $1.2 million to the Housing Successor Fund due to the Concord sale. In FY 2021, the General Fund transferred out $2.4 million less to the debt service funds, primarily due to less transfers for the 2019 Refunding Pension Obligation Bonds of the FPRS by using its cash proceeds from the sale of the Concord property. Other transfers-out increased by $1.2 million primarily due to transfers made to the Housing, capital projects, and the American Rescue Plan Act Fund (ARPA).

The Housing Successor Fund has a fund ba lance of $6.9 million, which is a decrease of $0.1 million from the prior year. The key factors contributing to this decrease are as follows:
• Total revenue increased to $0.4 million, mainly from loan repayments. • Total expenditures increased to $0.5 million, primarily due to the new Heritage Square South project. • Moreover, there is a transfer of $1.2 million from the General Fund due to the Concord Sale, as noted above.

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA
16 Annual Comprehensive Financial Report | June 30, 2021 Proprietary Funds
The City of Pasadena’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Unrestricted net position of the Light an d Power Fund at the end of the year amo unted to $204.9 million and those for the Water, Off-Street Parking Fund, and Non-Major Enterprise Funds amounted to $27.9 million, $(0.5) million, and $8.1 million respectively. The total net income/(loss) for each fund was $17.6 million, $9.8 m illion, ($2.7) million, and ($2.2) million respectively.

Light and Power operating revenues increased by $4.4 million from prior year. Total retail electric energy sold decreased by 44,446 megawatt hours, a 4.5 percent decrease compared to the prior fiscal year. Total operating expenses decreased slightly by $0.2 million to $187.7 million.

Water Fund operating revenues increased $8. 8 million from prior year primarily due to higher distribution charges, sales of water rights and leases to other agencies. Total retail water sales increased by $1.1 million or 9.7 percent billing units in retail water sales. Operating expenses increased $5.1 million or 9.1 percent primarily due to $1.3 million increase in transmission and distribution expenses and $1 million increase in purchased water and production expenses.

The Off-Street Parking Fund had a net loss of $2.7 million in FY 2021, as compared to $3.2 million net loss in FY 2020. Primarily due to the reduction of parking revenues from all parking structures triggered by COVID-19 pandemic since mid-March 2020 and suspension of parking enforcement and citations. The decrease in net loss was due to a forgiveness of debt of $1.1 million in FY 2021.

Implementation of GASB 68 has resulted in showing a Net Pension Liability in the Proprietary Funds. At June 30, 2021, the Net Pension Liability is $60.9 million, $21.2 million, $1.2 million, and $8.0 million fo r Light and Power, Water, Off-Street Parking, and Non-Major Enterprise funds respectively.

Implementation of GASB 75 has resulted in showing a Net OPEB Liability in the Proprietary Funds. At June 30, 2021, the Net OPEB Liability is $11.1 million, $5.4 million, $0.1 million, and $2.8 million for Light and Power, Water, Off-Street Parking, and Non-Major Enterprise funds, respectively.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City of Pasadena’s investment in capital assets for its go vernmental and business-type activities as of June 30, 2021 amounts to $1,308 million, net of accumulated depreciation. This investment in capital assets includes land, buildings and systems, improvements, machinery and equipment, park facilities, roads, highways, and bridges. The net increase in the City of Pasadena’s investment in capital assets for the current fiscal year was $18 million, a $5 million decrease for governmental activities and $23 million increase for business-type activities.

Major capital asset related events during FY 2021 included the following:
• A variety of street maintenance and construction, techno logy, traffic control and parks and landscape projects continue city-wide. $29.7 million were spent on capital proj ects in governmental activities. Costs for projects not completed are shown as construction in progress. The amount of construction in progress as of June 30, 2021 is $22.5 million for the governmental activities, and $82.5 million for the business-type activities. • For the technology upgrade projects, the City spent $1.2 million towards new and replacement computer equipment, nearly $1 million for enterpri
se building security management, $0.57 million toward new radio equipment, and $0.57 million for jail access control.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS
Annual Comprehensive Financial Report | June 30, 2021 17 • Improvement of city-owned facilities continues. The City spent $5 million for parks and landscape projects, $5 million for preventive maintenance and repairs for City buildings and fa cilities, $8.4 million for improvements to streets, sidewalks, and bridges, and $2.3 million for improvements to sewers and stormdrains. • The City spent approximately $4 million for traffic safety and control programs and improvements. • The City completed upgrade and replacement of parking access and revenue control equipment in eight City owned parking garages at a total cost of $3.3 million.
• As of June 30, 2021, the business-type activities net assets amounted to $800 million, an increase of $23 million over the prior year.
• Water and Power utility plant net assets amounted to $751 million, an increase of $23.2 million. During the fiscal year, the City spent $86.8 million on various water and power projects and moved $51 million into completed projects.
• Some of the major power projects are: GT-1 & GT-2 Upgrades and Replacement fo r $16.1 million, Customer Information System for $5 million, new 34.5kV Circuit at Oa k Knoll for $3.6 million, and Installation of Low & High Voltage Electrical Services for $6.1 million.
• Some of the major water projects are for distribution mains for $3.4 million and the customer information system for $2.7 million.

City of Pasadena's Capital Assets
(Net of Depreciation, in millions)
Governmental Activities Business-Type Activities Total
2021 2020 2021 2020 2021 2020
Land 87.3$ 87.3 14.7 14.7 102.0 102.1 Buildings and improvements 152.4 157.1 73.9 77.5 226.3 234.6 Machinery and equipment 36.9 37.3 628.6 613.6 665.4 650.9 Infrastructure 209.0 196.9 - 0.0 209.0 196.9 Construction in progress 22.5 34.5 82.5 71.2 105.0 105.6 Totals 508.1 $ 513.1 799.7 777.0 1,307.8 1,290.1 Additional information on
the City of Pasadena’s capital assets can be found in Note 7 on pages 64-65 of this report.

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18

Long-Term Debt
At year-end, the City has a number of debt issues outstanding. These include $134.9 million of taxable pension bonds, $306.5 million of revenue bonds, $53.2 million of certificates of pa rticipation, $4.9 millio n of notes payable and $8.3 million of capitalized lease obligations. Long-term de bt decreased by a net amount of $10.9 million as a result of normal scheduled principal maturities and refunding of debt. Operational liabilities decreased by a net amount of $1.8 mil lion due to increase in compensated absences, and decrease in insurance claims payable. The net pension obligation increased $7 million and the net OPEB liability increased by $9.9 million. The City was assigned an AAA issuer rating by Standard and Poor’s and AA+ rating by Fitch Rating Agency.

City of Pasadena's Outstanding Long-Term Liabilities (in millions) 2021 2020 2021 2020 2021 2020
Long-term debt (including premium/discount):

Notes payable 4.9$ 5.3 - - 4.9 5.3$
Bonds 134.9 136.7 306.5 311.6 441.4 448.3 Certificates of participation 53.2 55.5 - - 53.2 55.5 Capitalized lease obligations 5.9 6.8 2.4 2.8 8.3 9.6 Total long-term debt 198.9 204.3 308.9 314.4 507.8 518.7 Operational Liabilities:

Compensated absences 13.0 12.1 - - 13.0 12.1 Insurance claims payable 37.5 40.2 - - 37.5 40.2 Total operational liability 50.5 52.3 - - 50.5 52.3 Total long-term liability 249.4$ 256.6 308.9 314.4 558.3 571.0$ Net pension liability 414.3 410.9$ 91.2 87.6 505.5 498.5 Net OPEB liability 74.2$ 64.5$ 19.4 19.2 93.6 83.7$ TotalGovernmental Activities Business-Type Activities
Additional information on the City of Pasadena’s long-term debt can be found in Note 9 on pages 68 to 80 of this report.

Information on self-insurance claims payable can be found in Note 17 on pages 91 to 92, net pension obligation in Note 19 on pages 93 to 103, and OPEB can be found in Note 20 on pages 104 to 108.

The City reports two items of significant economic importance in its subsequent event Note 23 on page 110.

REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City of Pasadena’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the office of th e Director of Finance, 100 North Garfield Avenue, Room S348, Pasadena, California, 91101.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS
Annual Comprehensive Financial Report | June 30, 2021 19

FINANCIAL SECTION CITY OF PASADENA
20 Annual Comprehensive Financial Report | June 30, 2021 Statement of Net Position
June 30, 2021
Total Aggregate
Governmental Business-type Primary Component
Activities Activities Government Units Total
Assets:

Current assets:

Cash and investments 279,066,233$ 328,510,719 607,576,952 27,513,806 635,090,758$ Accounts receivable, net 48,834,729 38,044,082 86,878,811 2,864,161 89,742,972 Notes receivable, net 13,505,395 6,606,250 20,111,645 - 20,111,645 Internal balances (220,000) 220,000 - - - Inventories 440,837 25,295,051 25,735,888 14,703 25,750,591 Prepaids and other assets 1,234,874 1,036,820 2,271,694 219,419 2,491,113 Due from City - - - 966,742 966,742
Due from other governments 8,882 - 8,882 - 8,882
Property held for resale 867,166 - 867,166 - 867,166
Total current assets 343,738,116 399,712,922 743,451,038 31,578,831 775,029,869 Noncurrent restricted assets:

Restricted assets - cash and investments 25,156,349 90,339,720 115,496,069 26,802,736 142,298,805 Restricted assets - others 1,440,417 1,440,417 - 1,440,417 Total noncurrent restricted assets 25,156,349 91,780,137 116,936,486 26,802,736 143,739,222 Other noncurrent assets:

Long-term prepaid and other assets - 9,575,362 9,575,362 455,325 10,030,687 Land 87,336,607 14,675,193 102,011,800 - 102,011,800 Constr
uction in progress 22,524,764 82,505,727 105,030,491 2,679,094 107,709,585 Other capital assets, net 398,271,176 702,511,160 1,100,782,336 289,189,197 1,389,971,533 Net pension asset 7,881,000 - 7,881,000 - 7,881,000
Total other noncurrent assets 516,013,547 809,267,442 1,325,280,989 292,323,616 1,617,604,605 Total assets 884,908,012 1,300,760,501 2,185,668,513 350,705,183 2,536,373,696 Deferred outflow of resources
Accumulated decrease in fair value of
hedging derivatives - - - 25,068,455 25,068,455 Deferred charges on bond refunding 22,285,305 587,812 22,873,117 3,146,352 26,019,469 Deferred outflows related to net pension liability 76,039,456 14,165,639 90,205,095 940,727 91,145,822 Deferred outflows related to net OPEB liability 11,187,954 2,921,224 14,109,178 - 14,109,178 Total deferred outflow of resources 109,512,715 17,674,675 127,187,390 29,155,534 156,342,924 Liabilities:

Current Liabilities
Accounts payable and accrued liabilities 31,408,304 21,421,867 52,830,171 7,530,281 60,360,452 Deposits 4,522,625 10,689,722 15,212,347 2,081,625 17,293,972 Due to primary government - - - 445,181 445,181 Due to other governments - - - 2,422,580 2,422,580 Long-term advance due within one year - - - 100,000 100,000 Unearned revenue 28,409,097 10,409,774 38,818,871 331,654 39,150,525 Compensated absences due within one year 9,740,019 - 9,740,019 379,439 10,119,458 Insurance claims payable within one year 18,315,553 - 18,315,553 - 18,315,553 Long-term debt due within one year 5,415,836 17,901,872 23,317,708 9,692,329 33,010,037 Total current liabilities 97,811,434 60,423,235 158,234,669 22,983,089 181,217,758 Nonc
urrent liabilities:

Derivative instrument liability - - - 25,068,456 25,068,456 Long-term advances from primary government - - - 600,000 600,000 Noncurrent liabilities due in more than one year:

Net pension liability 422,146,077 91,263,075 513,409,152 2,996,767 516,405,919 Net OPEB liability 74,191,917 19,371,840 93,563,757 - 93,563,757 Compensated absences due in more than one year 3,236,068 3,236,068 182,993 3,419,061 Insurance claims payable due in more than one year 23,728,640 23,728,640 - 23,728,640 Long-term debt due in more than one year 193,520,799 290,935,599 484,456,398 343,069,041 827,525,439 Total noncurrent liabilities 716,823,501 401,570,514 1,118,394,015 371,917,257 1,490,311,272 Total liabilities 814,634,935 461,993,749 1,276,628,684 394,900,346 1,671,529,030 Primary Government
The accompanying notes are
an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2021 21 Statement of Net Position
June 30, 2021
Total Aggregate
Governmental Business-type Primary Component
Activities Activities Government Units Total
Primary Government
Deferred inflow of resources
Deri va ti ve i ns truments - - - 4,613,215 4,613,215 Deferred inflows related to net pension liabilit y 15,502,943 1,255,364 16,758,307 21,374 16,779,681 Defer r ed inflows r elated to net OP EB liabilit y 4,287,339 1,119,444 5,406,783 - 5,406,783 Serv ice concession a greement - - - 269,574 269,574 Total deferred inflow of resources 19,790,282 2,374,808 22,165,090 4,904,163 27,069,253 Net Position:

Net inv est ment in c apit al assets 468,005,192 486,943,967 954,949,159 (2,671,828) 952,277,331 Restricted:

Nonexpendable 1,434,131 - 1,434,131 - 1,434,131
Expendable:

Communit y develo pment 13,407,859 - 13,407,859 - 13,407,859 Public safet y 3,687,821 - 3,687,821 - 3,687,821
Capital projects 2,669,953 - 2,669,953 - 2,669,953
Debt service 8,209,125 36,238,457 44,447,582 15,352,313 59,799,895 Stranded investments - 63,395,757 63,395,757 - 63,395,757 Trans portation 30,287,265 - 30,287,265 - 30,287,265 Contribution to General Fund - 19,544,138 19,544,138 - 19,544,138 Culture and literac y 2,535,879 - 2,535,879 - 2,535,879 Other purposes 6,056,222 7,489,978 13,546,200 870,240 14,416,440 Air qualit y im provement 117,085 117,085 - 117,085 Trust and loans 13,717,499 - 13,717,499 - 13,717,499 Unrestricted (390,132,521) 240,454,322 (149,678,199) (33,494,517) (183,172,716) Total net position 159,995,510$ 854,066,619 1,014,062,129 (19,943,792) 994,118,337$

FINANCIAL SECTION CITY OF PASADENA
22 Annual Comprehensive Financial Report | June 30, 2021 Statement of Activities
For the Fiscal Year Ended June 30, 2021
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary government:

Governmental activities:

Genera l government 72,811,363$ 13,503,704 3,983,202 - Publi c s a fety 148,286,756 10,322,337 3,904,606 - Tra ns portation 48,596,470 20,811,408 16,055,719 7,912,981 Utility 17 1,215 - - -
Sa nita ti on 6,783,455 7,320,573 - 1,536,502
Hea l th 17,465,004 2,153,914 10,324,181 -
Cul ture a nd l ei s ure 45,291,398 673,669 1,389,578 - Community development 57,361,608 11,795,344 25,106,279 - Int er est and other fisc al c har ges 6 , 4 9 9 , 9 9 3 - - - Total governmental activities 403,267,262 66,580,949 60,763,565 9,449,483 Business-type activities:

El ectri c 196,388,761 222,265,744 - 2,251,793
Wa ter 63,932,405 71,268,798 515,470 1,996,641
Refus e 20,059,453 11,502,454 2,261,493 -
Pa rki ng 11,909,882 9,010,526 - -
Tel ecommunication 188,984 567,472 - -
Total business-type activities 292,479,485 314,614,994 2,776,963 4,248,434 Total primary government 695,746,747 381,195,943 63,540,528 13,697,917 Aggregate Component Units 43,620,010$ 13,174,124 - 12,676 General revenues:

Taxes:

Property tax es, lev ied for general purpose
Sales taxes
Utility user s'
tax es
Transient occupancy taxes
Construction taxes
Business license taxes
Franchise taxes
Other taxes
Other intergovernmental, unrestricted
Motor vehicle in-lieu, unrestricted
Use of money - inv estment earnings
Miscellaneous revenues
Total general revenues
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year
Net position - end of year
Program Revenues
The accompanying notes
are an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2021 23 Total Aggregate
Governmental Business-t ypeP r i m a r y Component
Activities Activities Government Units Total
(55,324,457) - (55,324,457) - (55,324,457)$
(134,059,813) - (134,059,813) - (134,059,813)
(3,816,362) - (3,816,362) - (3,816,362)
(171,215) - (171,215) - (171,215)
2,073,620 - 2,073,620 - 2,073,620
(4,986,909) - (4,986,909) - (4,986,909)
(43,228,151) - (43,228,151) - (43,228,151)
(20,459,985) - (20,459,985) - (20,459,985)
(6,499,993) - (6,499,993) - (6,499,993)
(266,473,265) - (266,473,265) - (266,473,265)
- 28,128,776 28,128,776 - 28,128,776
- 9,848,504 9,848,504 - 9,848,504
- (6,295,506) (6,295,506) - (6,295,506)
- (2,899,356) (2,899,356) - (2,899,356)
- 378,488 378,488 - 378,488
- 29,160,906 29,160,906 - 29,160,906
(266,473,265) 29,160,906 (237,312,359) - (237,312,359)$ - - - (30, 433,
210) (30,433,210)$
76,578,788$ - 76,578,788 - 76,578,788$
62,307,647 - 62,307,647 - 62,307,647
26,937,888 - 26,937,888 - 26,937,888
6,297,629 - 6,297,629 4,181,042 10,478,671 2,096,747 - 2,096,747 - 2,096,747
6,350,624 - 6,350,624 - 6,350,624
2,813,117 5,722,056 8,535,173 - 8,535,173
5,661,462 - 5,661,462 1,368,681 7,030,143 3,578,810 - 3,578,810 5,000 3,583,810
21,846,853 - 21,846,853 - 21,846,853
2,517,678 1,033,177 3,550,855 157,017 3,707,872
3,091,335 2,852,071 5,943,406 5,078,633 11,022,039 220,078,578 9,607,304 229,685,882 10,790,373 240,476,255 16,266,716 (16,266,716) - - -
236,345,294 (6,659,412) 229,685,882 10,790,373 240,476,255 (30,127,971) 22,501,494 (7,626,477) (19,642,837) (27,269,314) 190,123,481 831,565,125 1,021,688,606 (300,955) 1,021,387,651 159,995,510$ 854,066,619 1,014,062,129 (19,943,792) 994,118,337$ Net (Expenses) Revenues and
Changes in Net Position
Primary Government

FINANCIAL SECTION CITY OF PASADENA
24 Annual Comprehensive Financial Report | June 30, 2021 Balance Sheet
Governmental Funds
June 30, 2021
Project Non-Major
Management General Housin g Governmental
General Fund Debt Service Successor Funds Total
Assets:

P ooled c ash and inv estments 6 5,378,504$ 5 ,843,466 594 6,918,142 160,705,262 238,845,968$ Accounts recei va bl e, net 28,269,557 1,731,363 - 4,249 18,263,619 48,268,788 Notes r eceiv able 18,350,000 - - 21 ,340,218 53,322,822 93,013,040 Allowanc e for unc ollec tible not es
receivable (4,844,605) - - (21,340,218) (53,322,822) (79,507,645) Due from other funds 21,317,494 - - - - 21 ,317,494 Due from other governments 8,882 - - - - 8,882 Prepaids and other assets 1 2 1,096 - - - 116,266 237,362 Restricted assets:

Cash and investments 13,317,496 - - - 2 ,887,436 16,204,932 Cash with fiscal a gent - - - - 8,951,417 8,951,417 Proper ty hel d for res a l e - - - - 867,166 867,166 Total assets 141,918,424 7,574,829 594 6,922,391 191,791,166 348,207,404 Liabilities:

Accounts payable and accrued liabilities 12 ,288,380 3,390,364 - 38,521 5,107,035 20,824,300 De posits 3,842,874 - - - 679,750 4,522,624 Due to other funds - - - - 9,024,239 9,024,239 Unearned rev enue 25,962,988 - - - 2 ,446,109 28,409,097 Advances from other funds 220,000 - - - - 220,000 Total liabilities 42,314,242 3,390,364 - 38,521 17,257,133 63,000,260 Deferred inflow of resources:

Unavailable revenues 540,893 1,619,031 - - 6 ,996,867 9,156,791 Total deferred inflow of resources 540,893 1,619,031 - - 6 ,996,867 9,156,791 Fund balances:

Nons pendable 13,626,491 - - - 1 ,550,397 15,176,888 Restricted 13,717,499 621,222 594 6,883,870 62,490,438 83,713,623 Committed 51,687,400 - - - 111 ,318,913 163,006,313 As signed 31,325,700 1,944,212 - - - 33 ,269,912 Unassi gned (11,293,801) - - - (7,822,582) (19,116,383) Total f
und balances 99,063,289 2,565,434 594 6,883,870 167,537,166 276,050,353 Total liabilities, deferred inflow of resources
and fund balances 141,918,424$ 7,574,829 594 6,922,391 191,791,166 348,207,404$ The accompanying notes are an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2021 25 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2021
Amounts reported for gov ernmental activ ities in the Statement of Net Position are different because:

Total fund balances - governmental funds 276,050,353$
492,303,072
Differences between ex pected a nd actual ex periences , assum ption cha nges and net differences between projec t ed and ac t ual ear nings and contributions subse quent to the mea s urement da te for the postretirement benefits (pension and OPEB ) ar e r ec ognized as deferred outflows of r esour c es and defer r ed inflows of r esour c es on t he st at ement of net position.

Deferred outfl ows - pens i on rel a ted 57,455,068
Deferred outfl ows - OPEB rel a ted 10,140,343
Deferred i nfl ows - pens i on rel a ted (14,144,322)
Deferred i nfl ows - OPEB rel a ted (3,885,884)
Total defer r ed outflows and inflows r elated to postem plo yment benefits 49,565,205 Other lon g-term a s s ets tha t are not avai lable to pay for current period ex penditures and , therefore , are either deferred or not re ported in the funds .

Una va i l a bl e revenues 9,156,791
Net pens i on a s s et 7,881,000
Total lon g-t er m asset s 17,037,791
Long-ter m liabilities ar e not due and payable in the c ur r ent period , and therefore , ar e not re ported in the funds .

Notes payable (4,955,325)
Pension bonds payable (134,950,000)
C er tif
ic ates of par t ic ipation (48,855,000)
Capitalized lease obli gations (5,876,051)
Unamor
tized premi um (discount ) (4,300,260)
Accrue
d interest payable on lon g-term debt (1,683,638)
Net O
P EB liabilit y (67,244,775)
Net pension liabilit y (316,682,972)
Total
lon g-ter m liabilities (584,548,021)
The s
ubstance of an advanced refundin g is r eported as deferrin g the difference and amortizin g it ov er futur e periods. 22,285,305
Internal serv ice funds are used b y mana gement to char ge the cos ts of certai n activities , suc h as equi pment mana gement and self-insurance , t o indiv idual funds. The asset s , deferred outflows of of resources , liabilities , and deferred inflows of resources of the internal service funds are included in governmenta l a ctivi ties in the s tatement of net position. (112,698,195) Net position of governmental activities 159,995,510$
Capi ta l as s ets of $786,514,667, net of a ccumul ated depreci ati on of $294,211,595, ha ve not been i ncl uded as financial resources in governmental fund activity.

The accompanying notes
are an integral part of these financial statements.

FINANCIAL SECTION CITY OF PASADENA
26 Annual Comprehensive Financial Report | June 30, 2021 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2021
Project Non-Major
Management General Housing Governmental
General Fund Debt Service Successo r Funds Total
Revenues:

Ta xes 181,231,144$ - - - 7,812,758 189 ,043,902$ Licenses and permits 3,468,341 - - - 9,322,874 12 ,791,215 Inter governmental revenues 24,489,916 4,704,045 - - 58,066,340 87 ,260,301 Cha rges for s ervi ces 35,761,861 31,985 - 90 10 ,201,942 45 ,995,878 Fines and forfeits 3 ,490,959 - - - - 3,490,959 Inv estment earnin gs1 ,950,907 - (3,058) 5,221 491,538 2 ,444,608 Renta l i ncome 832,562 - - 61,741 2,357,939 3 ,252,242 M isc ellaneous r ev enues 2 ,417,226 - - 298,958 3 ,076,259 5 ,792,443 Contributions 27 ,620 1,013,360 - - 2,588,545 3 ,629,525 Total revenues 253,670,536 5,749,390 (3,058) 366,010 93 ,918,195 353 ,701,073 Expenditures:

Current:

General gov ernment 63,329,674 2,185,013 6,640 - 32,173 65,553,500 P ublic safety 136,617,749 18,863 - - 2,166,047 138,802,659 Trans portation 21,522,450 7,597,702 - - 14,989,724 44,109,876 Utilit y - - - - 171,217 171 ,217
Sanitation - 2,026,168 - - 4,643,131 6 ,669,299 Health - - - - 16,265,484 16 ,265,484
Culture and leisure 27 ,246,458 173,012 - - 13,935,969 41 ,355,439 Communit y develo pment 8,887,779 5,076 - 515,321 38,544,007 47 ,952,183 Capital outla y 137,228 15,847,694 - - - 15,984,922 Debt service:

Pri ncipa l reti rement - - 2,822,031 - 2,295,000 5,117,031 Interest - - 4,114,536 - 2,444,328 6,558,864 Total expenditures 257,741,338 27,853,528 6,943,207 515,321 95,487,080 388,540,474 Excess (deficiency) of revenues over
(under) expenditures (4,070,802) (22,104,138) (6,946,265) (149,311) (1,568,885) (34,839,401) Other financing sources (uses):

Tr ansfer s in (note 15 ) 22,538,963 23,577,798 3,424,493 - 17,919,331 67,460,585 Tr ansfer s out (note 15 ) (27,011,137) (1,197,513) - - (21,288,092) (49,496,742) Total other financing sources (uses) (4,472,174) 22,380,285 3,424,493 - (3,368,761) 17,963,843 Change in fund balances (8,542,976) 276,147 (3,521,772) (149,311) (4,937,646) (16,875,558) Fund balances at beginning of year 107,606,265 2,289,287 3,522,366 7,033,181 172,474,812 292,925,911 Fund balances at end of year 99,063,289$ 2,565,434 594 6,883,870 167,537,166 276,050,353$ The accompanying notes are an integral par
t of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2021 27 Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
For the
Fiscal Year Ended June 30, 2021
Amounts reported for governmental activities in the s tatement of activities are different beca use:

Net change in fund balances - total governmental funds (16,875,558)$ Governmenta l funds report ca pita l outla ys a s expenditures . However, in the s tatement of activities , the cos t of thes e as s ets is a lloca ted over their es timated us eful lives a nd reported as deprecia tion expense. This is the amount by which depreciation expense ($18,540,480) exceeded capital outlay, ($15,847,696) tha t wa s ca pi ta l i zed i n the current peri od. (2,692,784) The net effect of v ar ious misc ellaneous tr ansac tions inv olv ing c apital assets (i.e., sales, tr ade-ins, and donations) is to decrease net position.

L oss on sale of asset s (1,682,878)
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond and other debt principal is an ex penditur e in the gov er nmental funds, but r epay ment r educ es long-ter m liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activ ities.

Repayments:

Pri nci pa l repa yments 5
,117,031
Amortization of bond premiums/discounts/deferred refund charges 246,419 5,363,450 Revenues in the s ta tement of a ctivities that do not provide current financial res ources a re not reported as revenues in the funds. 2,996,055
Bond deferred charges and similar items are recorded as expenditures in governmental funds when debt is firs t is s ued, whereas thes e pa yments a re deferred a nd amortized in the s tatement of activities .

This amount is the net offset of the difference.
(1,113,394)
Inter e
st pay able r elated to debt ser v ic es or long-ter m liabilities. This is the net change in inter est payable expense for the current period. 58,871
Pension expenditures reported in the governmental funds includes the annual required contributions.

In the Statement of Activities, pension expense includes the change in the net pension liability, and related changes in pension amounts for deferred outflows of resources and deferred inflows of resources. (2,449,502)
OPEB e
xpenditures reported in the governmental funds includes payment of premiums for the current year.

In the Statement of Activities, OPEB expens e includes the change in the OPEB liability a nd OPEB rel a ted deferred outfl ows of res ources a nd deferred i nfl ows of res ources . (6,581,638)
Int er n
al ser v ic e funds ar e used by management t o c har ge t he c ost s of c er t ain ac t iv it ies, suc h as c omput ing and communication, building maintenance, fleet maintenance, fleet replacement, benefits, workers' c ompensation, gener al liability , and 3 11 c all c enter , to indiv idual funds. The net r ev enue (ex pense) of certa i n a cti vi ti es of i nterna l s ervi ce funds i s reported wi th governmenta l a cti vi ti es . (7,150,593)
Change
in net position of governmental activities (30,127,971)$ The accompanying notes are an integral part of these financial statements.

FINANCIAL SECTION CITY OF PASADENA
28 Annual Comprehensive Financial Report | June 30, 2021 Statement of Net Position
Proprietary Funds
June 30, 2021
Light Off-Street
and Power Water Parking
Assets:

Current assets:

Cash and investments 259,642,909$ 42,753,335 724,306 Accounts receivable, net 25,443,059 9,698,338 659,882 Note receivable, restricted 6,606,250 - -
Inventories 17,241,034 8,054,017 -
Prepaids and other assets 405,432 419,272 212,116 Total current assets 309,338,684 60,924,962 1,596,304 Noncurrent restricted assets:

Cash and investments 15,608,672 15,020,156 -
Cash and investments - stranded investments reserve 54,000,846 - - Cash with fiscal agent - 3,710,046 2,000,000
Notes receivable 1,440,417 - -
Total noncurrent restricted assets 71,049,935 18,730,202 2,000,000 Other noncurrent assets:

Advances to other funds 220,000 - -
Deposit with Independent System Operator (ISO) 200,000 - - Prepaid long-term assets 9,375,362 - -
Capital assets, net of accumulated depreciation 530,112,842 220,821,479 43,648,032 Total other noncurrent assets 539,908,204 220,821,479 43,648,032 Total assets 920,296,823 300,476,643 47,244,336
Deferred outflow of resources:

Deferred charges - bond refunding 455,489 132,323 - Deferred outflows related to net pension liability 8,948,661 3,635,958 233,034 Deferred outflows related to net OPEB liability 1,659,696 831,739 13,431 Total deferred outfl
ow of resources 11,063,846 4,600,020 246,465
Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 11,197,471 8,702,361 794,283 Deposits 782,162 166,353 250,168
Insurance claims payable - current - - -
Due to other funds - - -
Unearned revenues 9,314,673 1,095,101 -
Compensated absences due within one year - - -
Revenue bonds - current 13,930,000 2,720,000 800,000 Capitalized lease obligations - current - - 451,872 Total current liabilities 35,224,306 12,683,815 2,296,323 Noncurrent liabilities:

Insurance claims payable - long-term - - -
Compensated absences due in more than one year
Advances from other funds - - -
Net pension liability 60,854,424 21,172,249 1,208,572 Net OPEB liability 11,107,104 5,414,626 89,066
Revenue bonds - long-term 203,186,710 65,416,638 20,400,000 Capitalized lease obligations - long-term - - 1,932,251 Total noncurrent liabilities 275,148,238 92,003,513 23,629,889 Total liabilities 310,372,544 104,687,328 25,926,212
Deferred inflow of resources:

Deferred inflows related to net pension liability 793,033 322,220 20,652 Deferred inflows related to net OPEB liability 638,142 316,602 5,1 47 Total deferred inflow of resources 1,431,175 638,822 25,799 Net position:

Net investment in capital assets 310,243,888 151,526,443 20,063,909 Restricted:

Debt service 15,508,255 18,730,202 2,000,000
Contribution to General Fund 18,000,000 1,544,138 - Stranded investments 63,395,757 - -
Other purposes 7,489,978 - -
Unrestricted 204,919,072 27,949,730 (525,119)
Total net position 619,556,950$ 199,750,513 21,538,790 The accompanying notes are an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2021 29

Governmental
Activities -
Non-Major Total Internal
Enterprise Enterprise Service
Funds Funds Funds Total
25,390,169 328,510,719 40,220,265 368,730,984$ 2,242,803 38,044,082 565,941 38,610,023 - 6,606,250 - 6,606,250 - 25,295,051 440,837 25,735,888 - 1,036,820 997,512 2,034,332 27,632,972 399,492,922 42,224,555 441,717,477 - 30,628,828 - 30,628,828 - 54,000,846 - 54,000,846 - 5,710,046 - 5,710,046 - 1,440,417 - 1,440,417 - 91,780,137 - 91,780,137 - 220,000 - 220,000 - 200,000 - 200,000 - 9,375,362 - 9,375,362 5,109,727 799,692,080 15,829,475 815,521,555 5,109,727 809,487,442 15,829,475 825,316,917 32,742,699 1,300,760,501 58,054,030 1,358,814,531 - 587,812 - 587,812 1,347,986 14,165,639 18,584,388 32,750,027 416,358 2,921,224 1,047,611 3,968,835 1,764,344 17,674,675 19,631,999 37,306,674 727,752 21,421,867 8,900,366 30,322,233 9,491,039 10,689,722 - 10,689,722 - - 18,315,553 18,315,553 - - 12,293,255 12,293,255 - 10,409,774 - 10,409,774 - - 9,740,019 9,740,019 - 17,450,000 - 17,450,000 - 451,872 - 451,872 10,218,791 60,423,235 49,249,193 109,672,428 - - 23,728,640 23,728,640 - 3,236,068 3,236,068 - - - - 8,027,830 91,263,075 105,463,105 196,726,180 2,761,044 19,371,840 6,947,142 26,318,982 - 289,003,348 - 289,003,348 - 1,932,251 - 1,932,251 10,788,874 401,570,514 139,374,955 540,945,469 21,007,665 461,993,749 188,624,148 650,617,897 119,459 1,255,364 1,358,621 2,613,985 159,553 1,119,444 401,455 1,520,899 279,012 2,374,808 1,760,076 4,134,884 5,109,727 486,943,967 15,816,568 502,760,535 - 36,238,457 - 36,238,457 - 19,544,138 - 19,544,138 - 63,395,757 - 63,395,757 - 7,489,978 - 7,489,978 8,110,639 240,454,322 (128,514,763) 111,939,559 13,220,366 854,066,619 (112,698,195) 741,368,424$

FINANCIAL SECTION CITY OF PASADENA
30 Annual Comprehensive Financial Report | June 30, 2021 Statement of Revenues, Expenditures and Changes in Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2021
Light Off-Street
and Power Water Parking
Operating revenues:

Utilities 2 2 2 ,2 6 5 ,7 4 4$ 71,268,798 -
Off-street parking - - 7,898,124
Refuse c ollec tion - - -
Telecommunication - - -
Computing and communication services - - -
Building maintenanc e - - -
Fleet maintenance - - -
Employee benefits - - -
Insurance - - -
311 Ca l l Center - - -
Total operating revenues 222,265,744 71,268,798 7,898,124 Operating expenses:

Utility pr oduc tion 1 0 7 ,5 5 7 ,2 8 4 33,044,709 - Utility tr ansmission and distr ibution 1 5 ,9 0 4 ,6 9 9 7,140,108 - Utility c ommer c ial and gener al 3 2 ,0 0 5 ,9 4 3 12,101,831 - Off-street parking - - 9,957,832
Refuse c ollec tion - - -
Telecommunications - - -
Computing and communication services - - -
Building maintenanc e - - -
Fleet maintenance - - -
Benefits - - -
Insurance - - -
311 Ca l l Center - - -
Depreciation 32,271,007 8,941,395 1,631,566
Total operating expenses 187,738,933 61,228,043 11,589,3 98 Operating income (loss) 34,526,811 10,040,755 (3,691,274) Non-operating revenues (expenses):

Taxes - - -
Intergov ernmental rev enues - 515,470 -
Inves tment ea rni ngs 595,593 172,459 155,095
M iscellaneous - - -
Interes t expens e (8,292,590) (2,719,055) (316,179)
Gain (loss) on disposal of assets (357,238) 14,693 (4,305) Other 1,179,829 1,672,242 1,112,402
Total nonoperating revenues (expenses) (6,874,406) (344,191) 947,013 Income (loss) before transfers and contributions 27,652,405 9,696,564 (2,744,261) Capital contributions 2,251,793 1,996,641 -
Tra ns fers i n 5,717,151 - -
Trans fers out (18,000,000) (1,894,138) -
Changes in net position 17,621,349 9,799,067 (2,744,261) Net position (deficit) at beginning of year 601,935,601 189,951,446 24,283,051 Net position (deficit) at end of year 619,556,950$ 199,750,513$ 21,538,790$ The accompanying notes
are an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2021 31 Governmental
Activities -
Non-Major Total Internal
Enterprise Enterprise Service
Funds Funds Funds Total
- 293,534,542 - 293,534,542$
- 7,898,124 - 7,898,124
11,502,454 11,502,454 - 11,502,454
567,472 567,472 - 567,472
- - 18,415,518 18,415,518
- - 13,240,174 13,240,174
- - 12,498,120 12,498,120
- - 33,545,227 33,545,227
- - 20,741,707 20,741,707
- - 850,557 850,557
12,069,926 313,502,592 99,291,303 412,793,895 - 140,601,993 - 140,601,993
- 23,044,807 - 23,044,807
- 44,107,774 - 44,107,774
- 9,957,832 - 9,957,832
19,376,302 19,376,302 - 19,376,302
38,193 38,193 - 38,193
- - 17,711,967 17,711,967
- - 13,020,147 13,020,147
- - 9,014,842 9,014,842
- - 41
,421,638 41,421,638
- - 20,490,935 20,490,935
- - 763,957 763,957
842,648 43,686,616 2,496,730 46,183,346
20,257,143 280,813,517 104,920,216 385,733,733
(8,187,217) 32,689,075 (5,628,913) 27,060,162 5,722,056 5,722,056 - 5,722,056
51,728 567,198 - 567,198
110,030 1,033,177 73,070 1,106,247 - - 90,987 90,987
- (11,327,824) - (11,327,824)
8,706 (338,144) 11,390 (326,754)
2,209,765 6,174,238 - 6,174,238
8,102,285 1,830,701 175,447 2,006,148
(84,932) 34,519,776 (5,453,466) 29,066,310 - 4,248,434 - 4,248,434
192,452 5,909,603 1,532,964 7,442,567
(2,282,181) (22,176,319) (3,230,091) (25,406,410) (2,174,661) 22,501,494 (7,150,593) 15,350,901 15,395,027 831,565,125 (105,547,602) 726,017,523 13,220,366$ 854,066,619$ ( 112,698,195)$ 741,368,424$ .

FINANCIAL SECTION CITY OF PASADENA
32 Annual Comprehensive Financial Report | June 30, 2021 Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2021
Light Off-Street
and Power Water Parking
Cash Flows from Operating Activities:

Cash received from customers 222,662,307$ 71,571,078 7,769,016 Cash payments to suppliers for goods and services (114,036,414) (33,083,639) (9,566,575) Cash payments to employees for services (33,525,247) (13,589,653) (1,064,271) Cash payments to other funds for services (6,892,574) (4,023,709) (3,940) Miscellaneous revenue 1,179,829 1,672,242 1,112,402
Net cash provided by (used for) operating activities 69,387,901 22,546,319 (1,753,368) Cash Flows from Noncapital Financing Activities:

Cash transfers in 7,548,002 - -
Cash transfers out (18,000,000) (1,894,138) -
Advances from other funds 110,000 - (1,087,067)
Taxes received - - -
Non-operating miscellaneous revenue - - -
Intergovernmental revenues - 515,470 -
Net cash provided by (used for) noncapital financing activities (10,341,998) (1,378,668) (1,087,067) Cash Flows from Capital and Related Financing Activities:

Acquisition and construction of capital assets (47,284,194) (18,162,816) (939,492) Proceeds from long-term debt - 30,130,000 -
Amount paid to bond escrow agents - (276,891) -
Proceeds from sale of capital assets 31,867 30,510 -
Payments on capital leases - - (451,872)
Capital contributions 4,736,451 1,025,520 -
Bond premiums received from debt issuance - 8,944,012 - Principal paid on capital debt (13,380,000) (28,010,000) (788,172) Interest paid on capital debt (9,678,950) (2,858,148) (316,179) Net cash used for capital and related financing activities (65,574,826) (9,177,813) (2,495,715) Cash Flows from Investing Activities:

Proceeds from sale of investments 27,788,023 - - Purchase of investments (30,000,000) 1,262,988 -
Investment earnings 1,257,766 272,091 155,091
Payments received from loans made to suppliers 6,583,333 - - Net cash provided by (used for) investing activities 5,629,122 1,535,079 155,091 Net increase (decrease) in cash and cash equivalents (899,801) 13,524,917 (5,181,059) Cash and cash equivalents at beginning of year 278,649,920 44,305,796 7,905,365 Cash and cash equivalents at end of year 277,750,119 57,830,713 2,724,306 Reconciliation of cash and cash equivalents to amounts
reported on the Statement of Net Position:

Cash and investments 259,642,909 42,753,335 724,306
Restricted:

Cash and stranded investments reserve 54,000,846 - - Cash and investments 15,608,672
3,710,046
-
Cash with fiscal agent
15,020,156
2,000,000
Less non-cash equivalents (51,502,308) (3,652,824) -
Cash and cash equivalents at end of year 277,750,119$ 57,830,713 2,724,306 The accompanying notes are an integral part of these financial statements. -

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2021 33 Governmental
Activities -
Non-Major Total Internal
Enterprise Enterprise Service
Funds Funds Funds Total
12,138,096 314,140,497 104,848,281 418,988,778$
(12,245,831) (168,932,459) (41,715,274) (210,647,733) (8,032,619) (56,211,790) (62,845,835) (119,057,625)
31,552 (10,888,671) - (10,888,671)
2,209,765 6,174,238 - 6,174,238
(5,899,037) 84,281,815 287,172 84,568,987
192,452 7,740,454 1,532,964 9,273,418
(2,282,181) (22,176,319) (3,230,095) (25,406,414)
- (977,067) - (977,067)
5,722,056 5,722,056 - 5,722,056
- - 1,147,557 1,147,557
51,728 567,198 - 567,198
3,684,055 (9,123,678) (549,574) (9,673,252)
(1,167,033) (67,553,535) (1,918,559) (69,472,094)
- 30,130,000 - 30,130,000
- (276,891) - (276,891)
8,706 71,083 11,390 82,473
- (451,872) - (451,872)
- 5,761,971 - 5,761,971
- 8,944,012 - 8,944,0 12
- (42,178,172) - (42,178,172)
- (12,853,277) - (12,853,277)
(1,158,327) (78,406,681) (1,907,169) (80,313,850)
- 27,788,023 - 27,788,023
- (28,737,012) - (28,737,012)
110,030 1,794,978 73,921 1,868,899
- 6,583,333 - 6,583,333
110,030 7,429,322 73,921 7,503,243
(3,263,279) 4,180,778.00 (2,095,650) 2,085,128
28,653,448 359,514,529 42,315,915 401,830,444
25,390,169 363,695,307 40,220,265 403,915,572
25,390,169 328,510,719 40,220,265 368,730,984
- 54,000,846 - 54,000,846
- 19,318,718 - 19,318,718
- 17,020,156 - 17,020,156
- (55,155,132) - (55,155,132)
25,390,169 363,695,307 40,220,265 403,915,572$

FINANCIAL SECTION CITY OF PASADENA
34 Annual Comprehensive Financial Report | June 30, 2021 Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2021
Light Off-Street
and Power Water Parking
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities: 34,526,811$ 10,040,755 (3,691,274) Operating income (loss)
Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization 32,271,007 8,941,395 1,631,566 Miscellaneous revenue 1,179,829 1,672,242 1,112,402
(Increase) decrease in accounts receivable (2,496,627) (536,986) (316,206) Increase (decrease) in allowance for uncollectible accounts 2,019,190 839,266 - Increase (decrease) in due to other funds - - -
(Increase) decrease in inventories 913,342 (28,277) - (Increase) decrease in prepaids and other assets 1,576,540 (74,869) (33,287) Increase (decrease) in accounts payable and accrued liabilities 795,949 2,037,279 (459,954) Increase (decrease) in unearned revenue 828,955 - - Increase (decrease) in insurance claims payable - - - Increase (decrease) in compensated absences - - -
Increase (decrease) in deposits payable (2,316,585) (353,818) (555) Increase (decrease) in deferred inflows (897,626) (362,410) (21,595) (Increase) decrease in deferred outflows (730,892) (384,087) (41,166) Increase (decrease) in net OPEB liability 69,040 35,577 (6,328) Increase (decrease) in net pension liability 1,648,968 720,252 73,029 Total adjustments 34,861,090 12,505,564 1,937,906
Net cash provided by (used for) operating activities 69,387,901$ 22,546,319 (1,753,368) Non-Cash Investing, Capital and Financing Activities
Gain (loss) on disposition of capital assets (357,238)$ 14,693 (4,305) Amortization of deferred charges (254,824) (66,161) - Amortization of premiums (discounts) 866,704 448,046 - Changes in fair value of investments (2,757,613)$ (394,013) - The accompanying notes
are an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2021 35 Governmental
Activities -
Non-Major Total Internal
Enterprise Enterprise Service
Funds Funds Funds Total
(8,187,217) 32,689,075 (5,628,913) 27,060,162$
842,648 43,686,616 2,496,730 46,183,346
2,209,765 6,174,238 6,174,238
(117,792) (3,467,611) (211,851) (3,679,462)
185,962 3,044,418 - 3,044,418
- - 6,548,964 6,548,964
- 885,065 (15,944) 869,121
- 1,468,384 (80,670) 1,387,714
(16,338) 2,356,936 (5,957,456) (3,600,520)
- 828,955 - 828,955
- - 748,042 748,042
- - 839,196 839,196
(784,513) (3,455,471) - (3,455,471)
(202,940) (1,484,571) (2,324,938) (3,809,509)
(170,949) (1,327,094) (1,468,797) (2,795,891)
7,972 106,261 (5,529) 100,732
334,365 2,776,614 5,348,338 8,124,952
2,288,180 51,592,740 5,916,085 57,508,825
(5,899,037) 84,281,815 287,172 84,568,987$
8,706 (338,144) (36,344) (712,632)$
- (320,985) - (641,970)
- 1,314,750 - -
207,463 (2,944,163) 15,155 222,618$

FINANCIAL SECTION CITY OF PASADENA
36 Annual Comprehensive Financial Report | June 30, 2021 Statement of Net Position
Fiduciary Funds
June 30, 2021
Employee
Benefit Private-Purpose
Trust Funds Custodial Funds Trust Funds Total
Assets:

Ca s h a nd ca s h equi va l ents 379,872,786$ 455,356 461,482$ 380,789,624$ Receivables:

Accounts receivable - 480,077 - 480,077
Contri buti on 6 ,786,349 - - 6 ,786,349
Interest 169 ,918 - - 169,918
Notes receivable - - 515,000 515,000
Allowance for uncollectible long-ter m r eceiv ables - - (515,000) (515,000) Total receivables 6,956,267 480,077 - 7,436,344 Other assets - 173 - 173
Investments, at fair value:

Government and a gencies 24,232,920 - - 24 ,232,920 Corporate obli gat ions 2 4,861,889 - - 24 ,861,889 Fixed income mutual fund 20,169,940 - - 20 ,169,940 Rea l es ta te 11,931,126 - - 11,931,126
Corporate stocks 54,344,414 - - 54 ,344,414 Total investments 135,540,289 - - 135 ,540,289 Ca pit al asset s, net - - 214,261 214 ,261 Total assets 522,369,342 935 ,606 675 ,743 523 ,980,691 Liabilities:

Accounts payable and accr ued liabilities 6 1,286 346,083 5 ,513 412,882 Due to other governments - 5,613 - 5,613
Bonds payable - due within one year - - 225,000 225 ,000 Pendi ng purchases 14,006,021 - - 14 ,006,021 Total liabilities 14,067,307 351 ,696 230 ,513 14 ,649,516 Net Position:

Res tri cted for pens i ons 508,302,035 - 508 ,302,035 Res tri cted for l i bra ry e qui pment - 310,630 - 310,630 Res tri cted for WIOA - 123,305 - 123,305
Restricted for bondholders - 154,878 - 154,878
Held in tr ust for other purposes - - 445,230 445 ,230 Unrestricted - (4,903) - (4,903)
Total
net position 508,302,035$ 583,910 445,230 509,331,175$ The accompanying notes
are an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2021 37 Statement of Changes in Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2021
Employee
Benefit Private Purpose
Trust Funds Custodial Funds Trust Funds Total
Additions:

Contributions:

Pla n members 16,949,928$ - - 16,949,928$
Property taxes - - 11 ,598,616 11,598,616
Program revenue - 4 ,548,237 - 4 ,548,237
A ssessment r ev enue - 1 ,079,148 - 1 ,079,148
Total contributions 16,949,928 5,627,385 11,598,616 34,175,929 Net investment income:

Inv estment earnin gs9 2,659,233 2,699 187 92,662,119 Interest 603,309 - - 603,309
Dividends 1,363,394 - - 1 ,363,394
Gross investment income 94,625,936 2,699 187 94,628,822 L ess inv estment expenses (439,243) - - (439,243) Tota
l net investment income 94,186,693 2,699 187 94,189,579 M isc ellaneous r ev enues - - 20,176 20,176
Total additions 111,136,621 5,630,084 11,618,979 128,385,684 Deductions:

Benefi ts pa id to parti ci pants 35,946,186 - - 35,946,186 Contributions to City - 27,620 - 27,620
Progra m expens e - 3,675,439 - 3,675,439
Fiscal a genc y expenses - - 1,601 1,601
Interest ex pense - 58,150 11,025 69,175
Statutory pass-through expenses - - 10,622,571 10,622,571 Admi ni s trati ve expens es 551,678 2,998 - 554,676 Count y administr at iv e expenses - - 968,530 968,530 Total deductions 36,497,864 3,764,207 11,603,727 51,865,798 Change in net position 74,638,757 1,865,877 15,252 76,519,886 Net position (deficit) held in tr ust -
begi nni ng, a s res ta ted 433,663,278 (1,281,967) 429,978 432,811,289 Net position held in trust - ending 508,302,035$ 583,910$ 445,230$ 509,331,175$ The accompanying
notes are an integral part of these financial statements.

FINANCIAL SECTION CITY OF PASADENA
38 Annual Comprehensive Financial Report | June 30, 2021 Combining Statement of Net Position
Discretely Presented Component Units
June 30, 2021
Rose Bowl Pasadena Center Pasadena
Operating Operating Community
Company Company Access Corp.T otal
Assets:

Current assets:

Cash and investments 19,935,783$ 7,246,445 331,578 27,513,806$ Ac counts r ec eiv able, net 2,735,988 125,433 2,740 2,864,161 Inventor y 14,703 - - 14,703
Due from the C it y of Pasadena - 966,742 - 966,742
Prepaids and other assets 9 9,911 103,501 16,007 219,419 Total current assets 22,786,385 8,442,121 350,325 31,578,831 Noncurrent assets:

Restr ic t ed assets - c ash and inv estments 1 5,352,313 11,118,769 331,654 26,802,736 Due from the C it y of Pasadena 455,325 - - 455,325 Ca pit al asset s:

Construction in progres s 135,105 2,543,989 - 2,679,094 Other ca pit al asset s, net 166,161,927 122,895,857 131,413 289,189,197 Total noncurrent assets 182,104,670 136,558,615 463,067 319,126,352 Total assets 204,891,055 145,000,736 813,392 350,705,183 Deferred outflow of resources:

Ac c umulated dec r ease in fair v alue of hedgin g - 25,068,455 - 25,068,455 Deferred refundi n g cha rges 2,157,461 988,891 - 3,146,352 Outflows related to pension liabilit y 940,727 - - 940,727 Total deferred outflow of resources 3,098,188 26,057,346 - 29,155,534 Liabilities:

Current liabilities:

Accounts payable and ac c r ued liabilit ies 3,371,746 475,099 22,779 3,869,624 Interest payable 3,140,299 520,358 - 3,660,657
Due to the Cit y of Pasadena 445,181 - - 445,181 De posits 1,003,662 1,077,963 - 2,081,625
Due to other governments 2,422,580 - - 2,422,580 Current portion of lon g-term advance 100,000 - - 100,000 Current portion of com pensat ed absenc es 1 7 4,446 171,174 33,819 379,439 Current portion of lon g-term debt 3,896,769 5,795,560 - 9,692,329 Unea rned revenue 331,654 331,654
Total current liabilities 14,554,683 8,040,154 388,252 22,983,089 Noncurrent liabilities:

Der iv at iv e instr ument liability - 25,068,456 - 25,068,456 Lon g-term advance 600,000 - - 600,000
Compensat ed absenc es 5 3,044 129,949 - 182,993
Lon g-term debt , net of current portion 203,107,691 139,961,350 - 343 ,069,041 Net pension liabilit y 2,996,767 - - 2,996,767 Total noncurrent liabilities 206,757,502 165,159,755 - 371 ,917,257 Total liabilities 221,312,185 173,199,909 388,252 394,900,346 Deferred inflow of resources:

Deferred refundi n g char ge- 4,613,215 - 4,613,215
Serv ice concession a greement - 269,574 - 269,574
Inflows related to net pension liabilit y 21,374 - - 21,374 Total deferred inflow of resources 21,374 4,882,789 - 4,904,163 Net Position:

Net investment in ca pit al asset s (7,911,849) 5,108,608 131,413 (2,671,828) Restrict
ed 15,352,313 870,240 - 16,222,553
Unres tri cted (20,784,780) (13,003,464) 293,727 (33,494,517) Total ne
t position (13,344,316)$ (7,024,616) 425,140 (19,943,792)$ The accompanying notes are an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2021 39 Combining Statement of Revenues, Expenditures and Changes in Net Position Discretely Presented Component Units
For the Fiscal Year Ended June 30, 2021
Rose Bowl Pasadena Cente r Pasadena
Operating Operating Community
Company Company Access Corp.T otal
Operating revenues:

Charges for services:

Rose Bowl 8,087,414$ - - 8,087,414$
Golf course 2,724,945 - - 2,724,945
Pasadena Center O peratin g Compan y - 1,347,177 - 1,347,177 Pasadena Communit y Acces s Corporation - - 1,014,588 1,014,588 Total operating revenues 10,812,359 1,347,177 1,014,588 13,174,124 Operating expenses:

Rose Bowl 11 ,856,614 - - 11,856,614
Golf course 839,069 - - 839,069
Pasadena Center O peratin g Compan y - 4,399,916 - 4,399,916 Pasadena Communit y Acces s Corporation - - 966,025 966,025 De preciation 14,415,128 4,194,486 48,701 18,658,315 Total operating expenses 27,110,811 8,594,402 1,014,726 36,719,939 Operating income (loss) (16,298,452) (7,247,225) (138) (23,545,815) Nonoperating revenues (expenses):

Trans ient occu panc y taxes , net - 4,181,042 - 4,181,042 Tourism business im provement district tax - 1,368,681 - 1,368,681 Fac ility res tora ti on fee - 5,000 - 5,000
Investment income (103,732) 260,702 47 157,017
Interest ex pense (12,312,912) (6,061,556) - (18,374,468) Publi
c, education, and government
(PEG) revenue - - 41,066 41,066
PEG ex pense 11,515,463 - (41,066) 11,474,397
Other nono peratin g revenues 5,037,567 - - 5,037,567 Total nonoperating revenues 4,136,386 (246,131) 47 3,890,302 Income (loss) before transfers (12,162,066) (7,493,356) (91) (19,655,513) Capital contributions - 12,676 - 12,676
Total trans fers from (to) other funds - 12,676 - 12,676 Change in net position (12,162,066) (7,480,680) (91) (19,642,837) Net position at be ginnin g of year (1,182,250) 456,064 425,231 (300,955) Net po
sition at end of year (13,344,316)$ (7,024,616) 425,140 (19,943,792)$ The accompanying
notes are an integral part of these financial statements

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40

NOTES TO THE BASIC FINANCIAL STATEMENTS
ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2021

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42

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 43 Note
1) Summary of Significant Accounting Policies .............................................................................................. 44 2) Cash and Investments ................................................................................................................................ 57 3) Accounts Receivable ................................................................................................................................. 61 4) Notes Receivable – Primary Government .................................................................................................. 62 5) Due From and To Other Funds .................................................................................................................. 62 6) Advances To and From Other Funds .......................................................................................................... 63 7) Capital Assets ............................................................................................................................................. 64 8) Deferred Inflows and Outflows .................................................................................................................. 66 9) Long-Term Debt and Other Liabilities ........................................................................................................ 68 10) Derivative Instruments ............................................................................................................................. 80 11) Fund Balance and Net Position .................................................................................................................. 83 12) Restricted Net Position – Stranded Investments ...................................................................................... 86 13) Accumulated Fund Deficits ....................................................................................................................... 87 14) Excess Expenditures over Appropriations ................................................................................................ 89 15) Pledged Revenue ....................................................................................................................................... 89 16) Transfers .................................................................................................................................................... 90 17) Self-Insurance ............................................................................................................................................ 91 18) Deferred Compensation Plan ..................................................................................................................... 93 19) Pension Plans ............................................................................................................................................. 93 20) Postemployment Benefits Other than Pensions (OPEB) ......................................................................... 104 21) Commitments and Contingencies ............................................................................................................ 109 22) Restatement of Beginning Net Position and Fund Balance ..................................................................... 110 23) Subsequent Events................................................................................................................................... 110

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 44 Annual Comprehensive Financial Report | June 30, 2021 (1) Summary of Signific ant Accounting Policies
The basic financial statements of the City of Pasadena, California (City) have bee n prepared in conformity with
generally accepted accounting principles (GAAP) as applied to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below. (a) Reporting Entity
The City was incorporated on June 19, 1887 as a Charter City, which operates under a Council-City Manager form of government. The City is a municipal corporation governed by an elected mayor and seven council members.

As required by GAAP, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The Ci ty is considered to be financially accountable for an organization if the City appoints a voting majority of th at organization's governing body and the City is able to impose its will on that organization or there is a potent ial for that organization to provide specific financial benefits to or impose specific fina ncial burdens on the City . The City is also considered to be financially accountable if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City is such that their exclusion would cause the City's financial statements to be misleading or incomplete.

The two methods of reporting component unit data in the basic financial statements are blended and discrete presentation. Blending is limited exclusively to when the board of the component unit is substantively the same as that of the City or if the component unit serves the City exclusively, or almost exclusively.

Blended component units, although legally separate entities, are in substance part of the City’s operations; data from these units are combined with data of the City. Component units that do not meet the criteria for blending are included within financial statemen ts as discrete presentations. Disc retely presented component units are reported in a separate column in the government-wid e financial statements to emphasize they are legally separate from the government. Similar to the City, each blended and discretely presented component unit has a June 30
th year-end.

Jointly governed organizations provide goods or services to the citizenry of two or more governments, but do not have an ongoing financial interest or responsibility by the participating governments.

Blended Component Units
Pasadena Parking Authority (The Authority)
The Authority was created by Resolution No. 1399, dated June 6, 1972 pursuant to the provisions of the Parking Law of 1949 (California Streets and Highways Code, Sections §32651 and §32661.1). The City Council constitutes the governing board of the Authority pursuant to the aforementioned Resolution. The primary purpose of the Authority is to establish parking facilit ies for motor vehicles within the Ci ty, to furnish motor vehicle parking spaces, and to care for such vehicles within any parking facility or space owned, controlled or operated by the Authority. The City has oper ational responsibility for the Authority. Th e Authority is reported as an Enterprise Fund and does not release a separate financial report.

Pasadena Civic Improvement Corporation (PCIC)
PCIC was created on August 9, 1985 pursuant to the Non-profit Public Benefit Corporation Law of the State of California (Title 1, Division 2, Part 2 of the California Co rporations Code). At the request of the City, PCIC was organized for the specific and primary purpose of providing financial assistance to the City by acquiring or constructing property and appurtenances for and on behalf of the City. This is accomplished through the issuance of such financing instruments as certif icates of participation. The PCIC is a non-profit organization with three directors: Chief Executive Officer, Secretary/Financial Officer, and Assistant Executive Officer/Assistant Secretary. PCIC's financial data and transactions are bl ended with the Debt Service and Capital Projects fund types. The PCIC does not release a separate financial report.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 45 (1) Summary of Significant A ccounting Policies (Continued) Pasadena Housing Auth
ority (Housing Authority)
Formerly known as the Local Housing Authority, the Pasadena Housing Authority administers the City's federally funded housing programs under contract with the United States Department of Housing and Urban Development (HUD). The Housing Authority’s purpose is to help provide safe and sanitary housing accommodations for citizens with low income. It is governed by the City Council and the City has operational responsibility for the Authority.

The Housing Authority’s financial data and transactions are blended as a Special Revenue Fund. The Housing Authority does not release a separate financial report.

Pasadena Public Financing Authority (PPFA)
The Pasadena Public Financing Authority was created through the joint exercise of powers agreement between the City and the Pasadena Community Development Commission (PCDC) dated April 24, 2000. The purpose of creating the PPFA is to accomplish the purposes of the law and the Bond Pooling Act, including the financing of public capital improvements and the pur chase of certain local obligations issu ed or incurred by the City, PCDC, or other public agencies or the sale of such local obligations or the issuan ce of bonds of th e PPFA secured in whole or in part by such local obligations, or by any other designated source of revenues, all permitted by the law or the Bond Pooling Act. The Bond Pooling Act auth orizes and empowers the PPFA to, among other things, (i) issue bonds and to expend or loan the proceeds thereof to the City or PCDC, (ii) finance the acquisition and/or construction of public capital improvements and to sell or lease such improvements to the City or PCDC and (iii) purchase bonds issued by the City or PCDC, all for the purpose of financing public capital improvements, working capital, liability and other insurance needs, or certain other projects wh enever there are significant public benefits, as determined by the City or PCDC. PCDC ceased operations as an entity on January 31, 2012, and the City became the successor agency to the PCDC to perform all of PCDC’s continuing obligations. PPFA’s financial data and transactions are blended with the Debt Servic e and Capital Projects fund types. The PPFA does not release a separate financial report.

Pasadena Fire and Police Retirement System (FPRS)
FPRS was originally established by the City Charter in 1919. The system was closed on June 30, 1977, but continues to pay out benefits to retirees and their beneficiaries. FPRS covers all sworn fire and police personnel who were employed by the City prior to July 1, 1977, except those who elected to transfer to the California Public Employees’ Retirement System (CalPERS) when the system closed. FPRS is managed by a five-member Retirement Board. Three of the members are appointed by the City Council. The other two members represent firefighter and police officials, and are each appointed by their respective members. The accompanying financial statements include FPRS under the Employee Benefit Trus t Funds. Additional information related to FPRS is included in Note 19.

Successor Agency to PCDC (Successor Agency)
The Successor Agency to PCDC was crea ted to serve, in a fiduciary capacity, as custodian for the assets and to wind down the affairs of the former Pasadena Co mmunity Development Commission (PCDC). The Successor Agency operates under the auspices of a legislatively formed oversight board who has authority over its financial affairs and supervises its operations and timely dissolution. Its assets are held in trust for the benefit of the taxing entities within the former PCDC boundaries and as such are not available for City use. The accompanying financial statements include the Successor Agency under the statutorily required Private-Purpose Trust Fund.

Discretely Presented Component Units
The following organizations are considered to be discretely presented component units of the City:

Rose Bowl Operating Company (RBOC)
RBOC was incorporated on January 18, 1994, as a legally separate entity wi th the primary purpose of returning economic and civic value to the City by managing a world class stadium and a professional quality golf course complex in a residential open-space environment. RBOC is governed by a thirteen-member board. Eleven members are appointed by the City Council, while th e University of California, Los Angeles (UCLA) and the Tournament of Roses appoint one each.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 46 Annual Comprehensive Financial Report | June 30, 2021 (1) Summary of Significant Accounting Policies (Continued) RBOC operations are discretely presented in the accomp
anying financial statements since neither of the two
criteria for blended component units, as described ab ove, have been met. RBOC’s budget is reviewed and approved by the City Council. RBOC is presented as an Enterprise Fund Type. Separate component unit financial statements of RBOC are issued and av ailable upon request from the RBOC Ad ministration Office at 1001 Rose Bowl Drive, Pasadena, California 91103. RBOC was audited in accordance with Generally Accepted Governmental Auditing Standards. Additional information is available at www.rosebowlstadium.com.

Pasadena Center Operating Company (PCOC)
PCOC was established on September 19, 1973, as a legally separate entity with the primary purpose of managing and operating the Pasadena Center, a civic facility designed for conferences, ex hibitions, trade shows, assemblies, cultural, educational and recreational prog rams, and for the use, benefit and enjoyment of the public. PCOC was also established to supervise the activi ties of the Pasadena Convention and Visitors Bureau.

PCOC is governed by a fourteen-member board who are appointed by the City Council. The City provides a significant portion of the operating support of PCOC through allocation of the Transient Occupancy Tax collected by the City. PCOC is presented as an Enterprise Fund. Separate component unit financial statements of PCOC are issued and available upon request from Pasadena Center Operating Company, 300 E. Green Street, Pasadena, CA 91101. PCOC was audited in accordance with Generally Accepted Government Auditing Standards. Additional information is available at www.pasadenacenter.com.

Pasadena Community Access Corporatio
n Board (PCAC)
PCAC was created by the City Council in July 1983 an d established on December 9, 1983 by Articles of Incorporation. The PCAC's primary purpose is to provide a means for individuals or groups to use cable telecommunications in order to commu nicate and share information. Th e PCAC board consists of eleven members. Seven are appointed from each Council district, one each by the Mayor and City Manager, two members, including one representing Pasadena City College (PCC) and another one representing Pasadena Unified School District (PUSD) with residency required except for the PCC and PUSD representative. The City is able to impose its will on PCAC thro ugh its ability to appoint a majority of its board members. PCAC’s budget is reviewed and approved by the City Co uncil. The City provides support through the 1% Public, Education, and Government (PEG) allocation. Separate component unit financial statements of PC AC are issued and available upon request from Pasadena Community Access Corporat ion, 150 South Los Robles Avenue, Pasadena, CA 91101. PCAC was audited in accordance with Generally Accepted Government Auditing Standards. Additional information is available at www.pasadenamedia.webs.com.

Jointly Governed Organizations
The following organizations are considered to be jointly governed organizations of t he City:

Hollywood Burbank Airport
The Hollywood Burbank Airport (formerly marketed as Bob Hope Airport) is under the governance of the Burbank-Glendale-Pasadena Airport Authority (Airport Au thority). The Airport Author ity is a separate agency created in 1977 under a joint powers agreement between the three cities for the sole purpose of owning and operating the Bob Hope Airport. Three commissioners from each city, appointed by each city's respective city council, make up the nine members of the Airport Au thority. There is no ongoin g financial interest or responsibility by the participating governments.

Additional information is available at www.hollywoodburbankairport.com.

County of Los Angeles
(County)
Under a Joint Powers Agreement dated November 22, 1966, both the City and the County participated in the construction of a parking structure at 199 North Garfield Avenue, Pasadena, California. In 1985, the County exercised an option to purchase the structure from the Retirement Board of the Los Angeles County Employees' Retirement Association, at which time the City became tenant in common, holding a 30% share of the facility.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 47 (1) Summary of Significant Accounting Policies (Continued) Foothill Air Support Team (FAST)
On July 31, 2000, the cities of Monrovia, Arcadia, Az usa, Covina, West Covina, and Pasadena formed a Joint Powers Agreement (JPA) for police helicopter services kn own as the FAST. Currently, the cities of Alhambra, Arcadia, Covina, Glendora, Monrovia, Pasadena, Pomona , San Marino, Sierra Madre, and South Pasadena are parties to the JPA. This arrangement provides police helicopter support to a number of neighboring cities on an hourly cost reimbursement basis. The City of Pasadena operates a fleet of police helicopters which it has made available for a limited set number of weekend hours and then on an on call basis. Cities are billed for their actual utilization. FAST does not own or operate helicopters, has not issued debt, and cannot levy taxes. The City bears the burden of purchasing, op erating, maintaining, and providing helicopter support. It does so under the City’s General Fund.

Rose Bowl Aquatics Center (RBAC)
On December 11, 1987, the City and the RBAC entered into an Operating and License Agreement for RBAC to build and operate swimming facilities owned by the City in the designated area of Brookside Park. The most recent Operating and License Agreement has a 15-year te rm with 3 five-year extensions and was executed on June 3, 2008. The City leases the property to the RBAC for $1 per year and provides various financial and operational supports to the community aquatics facility. In return RBAC operates as a year - round community aquatics facility, is responsible for capital improvements and repairs, and provides scholarship assistance and community services. The City Council and Mayor appoint 5 of the 21 member of the RBAC Board of Directors.

Foothill Workforce Development Board (FWDB)
Developed 35 years ago, the City Council approved a JPA among the cities of Arcadia, Duarte, Monrovia, Sierra Madre, South Pasadena, and Pasadena. The JPA created the Foothill Employment and Training Consortium (FETC) which the City of Pasadena is the fiscal agent and ha s the authority to receive and administer workforce development funds. FETC formed the Foothill Workforce Development Board (FWDB) to take the lead in developing the implementation plan for workforce deve lopment services for job seekers and businesses. The mission is to support economic growth in the San Gabriel Valley by investing in skill development and job training to ensure that businesses have qualified workforce talent and job seekers have career opportunities. The FWDB’s Americas Job Center of California is lo cated at 1207 East Green Street in Pasadena and is funded through the Workforce Innovation and Opportunity Act (WIOA).
(b) Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
• Government-wide financial statements
• Fund financial statements
• Notes to the basic financial statements
Government-wide Financial Statements
Government-wide financial statements display information about the reporting government as a whole, except
for its fiduciary activities. These statements include separate columns for the governmental and business-type activities of the primary government (including its blended component units), as well as its discretely presented component units. Eliminations have been made in the statement of activities so that certain allocated expenses are recorded only once (by function to which they were allocated). However, general governmental expenses have not been allocated as indirect expenses to the various functions of the City.

Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting . Under the economic resources measurem ent focus, all economic resources and obligations of the reporting government (both current and long-term) are reported in the government-wide

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 48 Annual Comprehensive Financial Report | June 30, 2021 (1) Summary of Significant A ccounting Policies (Continued) financial statements. Basis of accounting
refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities are recognized in accordance with various GASB Statements.

Program revenues include (1) charges to customers or app licants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Taxes and other items not included among program revenues are reported instead as general revenues.

Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the government- wide financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the City are reported as a reduction of the related liability, rather than as expenditures.

Fund Financial Statements
The underlying accounting system of the City is organize d and operated on the basis of separate funds, each of
which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing ac counts that comprise its assets, li abilities, fund equity, revenues and expenditures or expenses, as appropriate. Government al resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the City are governmental, proprietary, and fiduciary funds and they are presented after the government-wide financial statements. These statements disp lay information about major funds individually and non-major funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for fiduciary funds and similar component units. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.

Governmental Funds
In the fund financial statements, governmental funds are presented using the m odified-accrual basis of
accounting. Their revenues are recognized when they become measurable and available as net current assets.

Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or s oon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a sixty-day availability period. The City accrues the following revenue types: taxes, licenses, fines and forfeits, and miscellaneous revenues.

Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in th e period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction on which they are based takes place. Imposed non- exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable le gal claim to the revenues arises or when they are received, whichever occurs first.

In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and curre nt liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of “available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 49 (1) Summary of Significant A ccounting Policies (Continued) Non-current portions of lo
ng-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate that they should not be considered “available spendable resources,” since they do not represent net current assets. Recognition of governmental fund type revenues represented by non-current receivables are deferred until they become current receivables. Non-current portions of other lo ng-term receivables are reflected in non-spendable fund balance.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since th ey do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing source rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

Proprietary Funds
The City’s Ent
erprise and Internal Service Funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related go ods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether cu rrent or non-current) associated with their acti vity are included on their balance sheets. Proprietary fund ty pe operating statements present increases (revenues) and decreases (expenses) in total net position.

Operating revenues and expenses generally result from providing services, and producing and delivering goods in connection with a proprietary fund’s principal ongoin g operations. The principal operating revenues of the Light and Power Fund, Water Fund, Off-Street Parking Facilities Fund and of the City’s Internal Service Funds are charges to customers for sales and services. Operating ex penses for the Enterprise Funds and Internal Service Funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as non-operating revenues and expenses.

Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as expense. Proc eeds of long-term debt are recorded as a liability in the proprietary fund financial statements. Amounts paid to reduce long-term liability of the pr oprietary funds are reported as a reduction of the related liability.

When both restricted and unrestricted resources are comb ined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources.

Fiduciary Funds
The City’s fiduciary
funds include Employee Benefit Trust Funds, Custodial Funds, and Private-Purpose Trust Funds. Employee Benefit Trust Funds are used to account for resources that are required to be held in trust for the members and beneficiaries of benefit and contribution plans. Private-Purpose Trust Funds are to account for receipt of incremental property tax and payment of enforceable obligations (debts) of the former redevelopment agency.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 50 Annual Comprehensive Financial Report | June 30, 2021 (1) Summary of Significant A ccounting Policies (Continued) (c) Major Funds, Internal Service Fu
nds and Fiduciary Fund Types
The City reports the following major governmental funds:

General Fund – The primary fund of the City is used to account for all general revenues of the City not specifically levied or collected for other City funds and for expenditures related to the rendering of general services by the City.

In fiscal year ended June 30, 2021, the City combined the American Rescue Plan Act Fund under the General Fund. This fund is used to account for the use of revenue from the Coronavirus State and Local Fiscal Recovery Fund established by the American Rescue Plan Act of 2021 (ARPA), passed by the 117th United States Congress and signed into law by President Joe Biden on March 11, 2021. These funds are restricted for the bridging of budget shortfalls, education, housing and healthcare-related funding, including COVI D-19 vaccines, testing and contact tracing, and emergency paid leave.

Project Management Capital Projects Fund – used to a ccount for all capital improvement projects, except for those involving the utilities, and special assessment districts, where revenues are received from grants by other governments, private parties, and through transfer from other City funds.

General Debt Service Fund – used to account for the payment of interest and principal of the pension bonds and other city-wide obligations.

Housing Successor Fund – used to account for the use of property tax increment legally restricted for increasing or improving housing for low and moderate income households effective February 1, 2012.

The City reports the following major proprietary funds:

Light and Power Fund – used to account for the operations of the City’s electric utility; a self-supporting activity that renders services on a user-charge basis to residents and businesses as prescribed by the City Charter.

Water Fund – used to account for the operations of the City’s water utility; a self-supporting activity that renders services on a user-charge basis to residents and businesses as prescribed by the City Charter.

Off-Street Parking Fund – In fiscal year ended 2014, the City combined all of the parking funds into the Off-Street Parking Fund. This fund is used to account for the operation of the parking facilities throughout the City.

Internal Service Funds – to account for computing an d communication services, bu ilding maintenance, fleet maintenance, employee benefits, workers’ compensation and general liability, equipment leasing, printing and mail services to other departments or agencies of the City.

The City reports the following fiduciary fund types:

Employee Benefit Trust Funds – used to account for transactions of the Pasadena Fire and Police Retirement System (FPRS) and the City’s Deferred Compensation Plan.

Custodial Funds – used to account for resources held by the City in a pure ly custodial capacity. Custodial funds typically involve only the re ceipt, temporary investment, and remittanc e of fiduciary resources to individuals, private organizations, or other governments. The custodial funds account for monies received from agencies and financial activities for: (1) Lake/Washington Special Assessment District, (2) library equipment, (3) the Workforce Innovation and Opportunity Act (WIOA), and (4) the Open Space Assessment District.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 51 (1) Summary of Significant A ccounting Policies (Continued) Private-Purpose Trust Funds – is used to account for monies held on be half of others in a fiduciary capacity,
typically pursuant to a formal trust agreement. The City uses a private purpose trust fund to account for the receipt of incremental property tax and payment of enforceable obligations (debts) of the former redevelopment agency that were approved on the Recognized Obligation Payment Schedule (ROPS) by the California Department of Finance until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
(d) Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known am ounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the Proprietary Funds’ share in the City’s cash and investment pool. Cash equivalents have an original maturity date of three months or less from the date of purchase. (e) Cash and Investments
Investments are reported in the accompanying financial statements at fair value based on quoted market prices, except for certain certificates of deposit, money market investments that mature within one year of acquisition and investment contracts that are reported at cost because they are not transferable, they have terms that are not affected by changes in market interest rates, and provided that the fair valu e of those investments is not significantly affected by the impairment of the credit standing of the issuer or by other factors.

Both realized and unrealized changes in fair value that occur during a fiscal year are recognized and recorded as net changes in fair value of investments. Investment earnings include net changes in fa ir value of investments, interest earnings, and all other investment income.

The City pools cash and investments of all funds, except for certain fund specific City held portfolios, deferred compensation assets, and assets held by fiscal agents. Each fund’s sh are in this pool is displayed in the accompanying financial statements as cash and investments.

Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance, except for investment earnings associated with the following funds not legally required to receive p ooled investment earnings that have been assigned to and recorded as revenue in the General Fund, as provided by the legal provisions of the California Government Code Section §53647: Health, Housing and Community Development, Project Manage ment, Workers’ Compensation, General Liability, Employment and Training, South Lake Business Improvem ent District and Old Pasadena Business Improvement District.

The City enters into interest rate swap agreements to modify rates on outstanding debts. Other than the net interest expenditures resulting from these agreements, no amounts are recorded in the financial statements. (f) Inventories
Inventories held by the Light and Power Fund and Water Fund (Enterprise Funds) are carried at the lower of weighted average cost or market computed on a first-in/first-out basis depending on the type of inventory. There are three types of inventory, those held for consumption in operations, those capitalized, and inventory held for resale. Inventories held by the Fleet Maintenance Fund (Internal Service Fund) are carried at average cost.

Inventory items are accounted for as an expenditure or expense when consumed or sold.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 52 Annual Comprehensive Financial Report | June 30, 2021 (1) Summary of Significant A ccounting Policies (Continued) (g) Advances to Other Fu
nds
Long-term interfund advances are recorded as a receivable and as non-spendable fund balance by the general fund since they do not reflect current appropriable reserves. (h) Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid assets. The City utilizes the allocation method to reco rd its prepaids. The prepaid assets recorded in the Governmental Funds do not reflect current appropriable resources and, thus, an equivalent portion of fund balance is unspendable.
(i) Restricted Cash and Investments
The City considers all cash and invest ments from bond proceeds in Proprietary Funds as restricted. The City is legally mandated under bond indentures to use these resources only for the purposes specified. Also included as restricted cash and investments ar e amounts accumulated in the Light and Power Fund for the purpose of meeting future contractual commitments including the Stranded Investment Reserve (SIR) Utilization Plan which is discussed under Note 12 – Restricted Net Position, deferred compensation and all cash and investments belonging to Employee Benefit Trust and Custodial Funds which are held by trustees. (j) Property Held for Resale
Property held for resale represents land, structures, and their related improvements that were acquired for resale. This includes the properties acquired in accordance with the objective of the former Pasadena Community Development Commission (PCDC) project area.

On December 29, 2011 the California Supreme Court upheld Assembly Bill 1X 26 that provides for the dissolution of all redevelopment agencies in Calif ornia. The bill provides that upon d issolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the “succe ssor agency” to hold the assets until they are distributed to other units of state and local government. The City Council elected to become the Successor Agency on January 30, 2012.
(k) Capital Assets
Capital assets (including infrastructure) greater than $1 0,000 are capitalized and recorded at cost or at the
estimated fair value of the assets at the time of acqu isition where complete historical records have not been maintained. Contributed capital assets , works of art, and capital assets received in a service concession agreements are reported at acquisition value. The costs of normal maintena nce and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

Capital assets include public domain (infrastructure) general assets consisting of certain improvements including roads, streets, sidewalks, medians, sewer systems and storm drains.

Depreciation has been provided using the straight-line method over the estimated useful life of the asset in the government-wide financial statements and in the fund financial statements of the proprietary funds.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 53 (1) Summary of Significant A ccounting Policies (Continued) A summary of the estimated useful lives of capital assets is as follows:

Producti on Pl ant 20 to 40 years Source of Suppl y 20 to 50 years Tra ns mi s s i on Pl a nt 25 to 40 years Pumpi ng Pl ant 10 to 50 years Dis tri bution Pl a nt 20 to 40 years Treatment Pl a nt 10 to 20 years General Plant 10 to 40 years Transmission and Distribution Equi pment 4 to 10 years Pl ant 10 to 80 years
Genera l Pl ant 6 to 50 years
Equipment 4 to 10 years
Bui l ding and Improvements 20 to 50 years Bui ldi ng a nd Improvements 20 to 50 years Machinery and Equipment 2 to 20 years Machinery and Equipment 2 to 20 years Infra structure 8 to 200 years
Building and Improvements 20 to 50 years Machinery and Equipment 2 to 20 years Light and Power Fund Water Fund
Governmental Activities All Other Business-Type Activities Fiduciary Funds Fiduciary Funds
(l) Insurance Claims Payable
The City records a liability for material liti
gation, judgments, and claims (including incurred but not reported losses) when it is probable that an asset has been significantly impaired or a material liability has been incurred prior to year- end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated.

These claims are only recorded on a case-by-case basis. These liabilities are recorded and liquidated from the City’s Workers’ Compensation and General Liability Internal Service Funds. As mentioned in more detail in Note 17, excess liability insurance covers claims greater than the self-insurance thresholds. (m) Compensated Absences
The City accounts for compensated absences including accumulated va cation, floating holidays, and compensatory time-off, and certain sic k leave in the Benefits Internal Service Fund. Management time off is recorded under departmental expense as incurred. Upon separation, employees are paid for all of their unused vacation leave, floating holidays, management time off, and compensatory time -off subject to maximums described below.

Eligible employees accumulate 3 to 22 days of vacation each year, depending on the employee’s bargaining unit and length of service, but may not carry over from one year to the next more than the equivalent of one to three (depends on Memorandum of Understanding or Salary Resolution) year’s vacation without prior approval of the respective department head and/or City Manager.

A liability is recorded for unused va cation and similar compensatory leav e balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time-off or payments upon terminatio n or retirement. The City does not accrue for unused holiday and management time off.

Compensated absences are primarily liquidated by the General Fund, Light and Power Fund and Water Fund. Sick pay benefits only accumulate; they can be converted at retirement from the City for PERS Service Credit.

Consistent with this policy, the City does not accrue sick pay benefits. The to tal outstanding vacation, compensatory time-off obligations are accrued at fiscal year-end and included under Compensated Absences in the Benefits Internal Service Fund as a current liability. See Note 9 for additional details.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 54 Annual Comprehensive Financial Report | June 30, 2021 (1) Summary of Significant A ccounting Policies (Continued) (n) Net Pension Liability
For purposes of measuring the net pension liability, de ferred outflows and inflows of resources related to
pensions, and pension expense, information about the fi duciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office, and are in accordance with the implementation of GASB Statement No, 68. Investments are reported at fair value. CalPERS audited financial st atements are publicly available report s that can be obtained at CalPERS’ website under Forms and Publications. See Note 19 for additional details. (o) Postemployment Benefits Other than Pension Obligation (OPEB) For purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about th e fiduciary net position of the City’s OPEB plan, and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. See Note 20 for additional details. (p) Bond Premiums / Discounts / Issuance Costs
For Governmental-Wide Financial Statements and Propri etary Funds financial statements, issuance costs are recognized during the current period. Any bond premiums and discounts are capitalized and amortized over the life of the bonds. Bond proceeds, premiums and discounts are reported as other financing sources in the governmental fund financial statements.
(q) Deferred Outflows and Inflows of Resources
Pursuant to GASB Statements No. 63 and 65, the City recognizes deferred outflows and inflows of resources. A deferred outflow of resources is defined as a consumption of net position by the government that is applicable to a future reporting period. A deferred inflow of resources is defined as an acquisition of net position by the government that is applicable to a future reporting period. See Note 8 for additional details. (r) Fund Balance
In the fund financial statements, governmental fund balance is made up of the following components:

Nonspendable fund balance is the portion of fund balance that cannot be spent due to form. Examples include inventories, prepaid amounts, long-t erm loans, notes receivable, and pr operty held for resale, unless the proceeds are restricted, committed or assigned. Also, am ounts that must be mainta ined intact legally or contractually, such as the principal of a permanent fund are reported within the non-spendable category. • Restricted fund balance is the portion of fund balance that is subject to externally enforceable limitations by law, enabling legislation or limitations imposed by creditors or grantors. • Committed fund balance is the portion of fund balance that is subject to self-imposed constraints due to City Council resolutions, as they have the highest level of decision-making authority. • Assigned fund balance is the portion of fund balance that is constrained by the City’s intent to utilize fund balance for a specific purpose. The authority to assign fund balance has been delegated by the City Council to the Finance Director through the Fund Balance Policy.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 55 (1) Summary of Significant A ccounting Policies (Continued) • Unassigned fund balance is the residual classification for the general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. The general fund should be the only fund that reports a positive unassigned fund balance amount. In a governmental fund other than the general fund, expenditures incurred for a specific purpose might exceed the amounts in the fund that are restricted, committed, and assigned to that purpose and a negative residual balance for that purpose may result
The accounting policies of the City consider restricted fund balance to have been spent first when expenditures are incurred for purposes for which both the restricted and unrestricted fund balance is available. Similarly, when expenditures are incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned and then unassigned amounts.

In June 2017, the City Council directed staff to revise the Fund Balance Policy to split the General Fund Emergency Contingency into two components of committed fund balance, the General Fund Emergency Contingency Reserve and a General Fund Operating Reserve. The go al of a 20 percent General Fund reserve as committed fund balance continues, but is split 15 percent to the Emergency Contingency Reserve and 5 percent to the Operating Reserve. These percentages continue to be calculated using that year’s General Fund budgeted appropriations. It is intended that these committed fund balances would not be reduced below a 20 percent level without the direction of Council or upon a declared local emergency. (s) Property Taxes
The assessment, levy and collection of property taxes are the responsibility of the County of Los Angeles. The City records property taxes as revenue when received from the County, except at year-end, when property taxes received within 60 days are accrued as revenue.

Property taxes are assessed and collected each fiscal year according to the following property tax calendar:

Lien January 1
Levy July 1 to June 30
Due November 1 - 1s t i ns ta l l ment
March 1 - 2nd installment
C ollec t ion Dec ember 1 0 - 1 st installment
Apr il 1 0 - 2 nd installment
Property taxes on the secured roll are due in two installments; on November 1 and Ma rch 1 of the fiscal year. If
unpaid, such taxes become delinquent on December 10 and April 10, respectively, and a 10% penalty attaches to any delinquent payment. Such delinquent property may thereafter be redeemed by payment of the delinquent taxes and the delinquent penalty, plus a redemption penalty of 1% per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is then subject to sale by the County Tax Collector.

Property taxes on the unsecured roll are due as of the January 1 lien date and become delinquent, if unpaid, on August 31. A 10% penalty attaches to delinquent taxes on property of the unsecured roll, and an additional penalty of 1% per month begins to accrue. Collection of delinquent unsecured taxes is the responsibility of the County of Los Angeles using the several means legally available.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 56 Annual Comprehensive Financial Report | June 30, 2021 (1) Summary of Significant A ccounting Policies (Continued) (t) Use of Estimates
The preparation of financial statements in conformity with acco unting principles generally accepted in the United
States of America requires management to make estimates and assumptions that a ffect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures. The City has made certain estimates and assumptions relating to the revenues due and expenditures incurred through fiscal year-end, collect ability of its receivables, the valuation of property held for resa le, the useful lives of the capital assets, the ultimate outcome of claims and judgments, and the valuation of pension and othe r postemployment benefit plan liabilities and related deferred outflows and inflows of resources. Actual results may differ from those estimates and assumptions. (u) Interfund Activities
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Po sition have been eliminated except those representing balances between the governmental activities and the business- type activities, which are presented as internal balances and eliminated in the to tal government column. In th e statement of activities, internal services funds transactions have been eliminated. However, tr ansactions between governmental and business-type activities have not been eliminated.
(v) Endowments
The City has been the recipient of endowments that are recorded in Permanent Funds. The endowments are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City’s programs or specific restrictions that were placed on the endowment when the donation to the City was made. Please refer to the Permanent Funds section for additional details. (w) New Accounting Pronouncements
In fiscal year ended June 30, 2021, the City adopted the following accounting standard.

GASB Statement No. 84, Fiduciary Activities became effective for fiscal years beginning after December 15, 2019.

The objective of this Statement is to improve guidance re garding the identification of fiduciary activities for accounting and financial reporting purposes and how th ose activities should be reported. The City has implemented this Statement, see Note 22 for detail on impact to the City.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 57 (2) Cash and Investments
Primary Government (excl
uding the FPRS Employee Benefit Trust Fund’s cash and investments) Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:

Statement of net pos ition:

Cas h a nd i nves tments 607,576,952$
Res tri cted cas h a nd i nves tments 115,496,069
Fiduciary funds:

Cas h a nd ca s h equi val ents 377,007,991
Tota l ca s h and i nves tments 1,100,081,012$
Cash on hand 53,537$
Depos i ts wi th fi na nci a l i ns ti tuti ons 1,162,642 Inves tments 1,098,864,833
Tota l ca s h and i nves tments 1,100,081,012$
Cas h a nd i nves tments a s of June 30, 2021 cons i s t of the fol l owi ng:

Investments Au
thorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisio ns of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Authorized By * Maximum * Maximum
Investment Types Investment * Maximum Percentage Investment Authorized by State Law Policy Maturity of Portfolio in One Issuer Local Agency Bonds Yes 5 years None None
US Treasury Obligations Yes 5 years None None
US Agency Securities Yes 5 years None None
Banker's Acceptance Yes 180 days 40% 30%
Commercial Paper Yes 270 days 15% 10%
Negotiable Certificates of Deposit Yes 5 years 30% None Repurchase Agreement Yes 1 year None None
Reverse Repurchase Agreements Yes 92 days 20% of base value None Time Deposits Yes N/A 25% None
Medium Term Notes Yes 5 years 30% 5%
Mutual Funds Yes N/A 20% 10%
Money Market Mutual Funds Yes N/A 20% 10%
Mortgage Pass-Through Securities Yes 5 years 20% None
Corporate Bonds Yes 5 years 20% 10%
County Pooled Investment Fund Yes N/A None None
Local Agency Investment Fund (LAIF) Yes N/A None None
JPA Pools (other investment pools) Yes N/A None None
Registered State Warrants Yes N/A None None
* Based on state law requirements or investment policy requirements, whichever is more restrictive.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 58 Annual Comprehensive Financial Report | June 30, 2021 (2) Cash and Investments (Continued)
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond truste e. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Ma xi mum
Authorized Investment Type Maturity
US Treasury Obligations None
US Agency Securities None
Banker's Acceptance 360 days
Commercia l Paper 270 days
Mone y Ma rke t Mutua l Funds N/A
Investment Contracts 20-30 years
Pre-refunded Municipal Bonds None
Repurchase Agreements 1 y ear
Local Agency Inves tment Fund (LAIF) N/A
Gener al Obligation Bonds None
Disclosures Relating to Interest Rate
Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sen sitivity of the fair values of the City’s inve stments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
12 Months 13 to 24 25 to 60 More than
Investment Type Total or Less Months Months 60 Months
Corporate Bonds 106,202,311 $ 12,759,545$ 41,263,881$ 52,178,885$ -$ Supernationals 4,898,880 - - 4,898,880 - Federal Agency Securities 334,470,957 - - 299,957,430 34,513,527 Municipal Bonds 49,951,182 11,526,819 5,412,274 30,043,456 2,968,633 California Asset Management Program 751,914 751,914 - - - Money Market Funds 43,858,053 43,858,053 - - - State Investment Pool 132,732,792 132,732,792 - - - US Treasury 22,276,243 12,444,853 - 9,831,390 - Held by Bond Trustee:

Federal Agency Securities 11,718,413 - - 3,652,825 8,065,588 Money Market Funds 2,595,439 2,595,439 - - - Held by OPEB Trustee:

Mutual Funds 2,521,704 2,521,704 - - - Held by Pension Section 115 Trustee:

Mutual Fund 13,317,496 13,317,496 - - - Deferred Compensation Plan:

Mutual Funds 373,569,449 373,569,449 - - - Total 1,098,864,833$ 606,078,064$ 46,676,155$ 400,562,866$ 45,547,748$ Remaining Maturity (in Months)

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 59 (2) Cash and Investments (Continued)
Disclosures Relating to Credi
t Risk
Generally, credit risk is the risk that an issuer of an in vestment will not fulfill its oblig ation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.

Minimum
Legal Not
Investment Type Rating AAA Aa A Rated
Corporate Bonds 106,202,311$ A 2,656,012$ 35,449,624$ 68,096,675$ -$ Supernationals 4,898,880 A 4,898,880 - - -
Federal Agency Securities 334,470,957 N/A 334,470,957 - - - Municipal Bond 49,951,182 N/A 3,073,431 44,693,967 2,183,784 - California Asset Management Program 751,914 N/A - - - 751,914 Money Market Funds 43,858,053 N/A - - - 43,858,053 State Investment Pool 132,732,792 N/A - - - 132,732,792 US Treasury 22,276,243 N/A 22,276,243 - - - Held by Bond Trustee:

Federal Agency Securities 11,718,413 A 11,718,413 - - - Money Market Funds 2,595,439 A 2,595,439 - - - Held by OPEB Trustee:

Mutual Fund 2,521,704 N/A - 2,521,704 - -
Held by Pension Section 115 Trustee:

Mutual Fund 13,317,496 N/A - 13,317,496 - -
Deferred Compensation Plan:

Mutual Fund 373,569,449 N/A - 373,569,449 - -
Total 1,098,864,833$ 381,689,375$ 469,552,240$ 70,280,459$ 177,342,759$ N/A Not Applicable
Rating as of Year-End
Concentration of Credit Risk
The investment policy of the City
contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Go vernment Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows:

Investment Reported
Issuer Type Amount
Federa l Home Loa n Bank Federal Agency Securi ti es 145,777,938$ Federa l Home Loa n Mortga ge Ba nk Federal Agency Securi ti es 109,401,833 Federa l Fa rm Credit Bank Federal Agency Securi ti es 89,289,266 Custodial Credit Risk
Custodial credit risk for deposits is the r isk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investment s, other than the following provision for deposits: The California Government Code requires that a financial institut ion secure deposits made by state or local governmental units by pledging securities in an undivided collateral p ool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 60 Annual Comprehensive Financial Report | June 30, 2021 (2) Cash and Investments (Continued)
total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2021, $0 of the City’s deposits with financ ial institutions in excess of federal depository insurance limits was held in uncollateralized accounts.

For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.

Investment in State Investment Pool
The City is a voluntary participant in th e Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro- rata share of the fair value pr ovided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records main tained by LAIF, which are recorded on an amortized cost basis.

Fair Value Hierarchy
The Company categorizes its fair value measurements with in the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset or liability. Level 1 inputs are quot ed prices in active markets for identi cal assets; Level 2 inputs are quoted prices in active markets for similar assets. Level 3 inputs are significant unobservable inputs.

The City has the following recurring fair value measurements as of June 30, 2021:

Measure by Fair Value
Not Subject to Fa ir
Value Hierarchy 1 2 3 Total
Corpora te Bonds -$ -$ 106,202,311$ -$ 106,202,311$ Super nationals - - 4,898,880 - 4,898,880
Federal Agency Securities - - 334,470,957 - 334,470,957 Municipal Bond - - 49,951,182 - 49,951,182
C alifor nia Asset M anagement P r ogr a 7 5 1 , 9 1 4 - - - 751,914 Money Ma rket Funds 43,858,053 - - - 43,858,053 Sta te Inves tment Pool 132,732,792 - - - 132,732,792 US Treasury - - 22,276,243 - 22,276,243
Held by Bond Trustee:

Federal Agency Securities - - 11,718,413 - 11,718,413 Money Market Funds 2,595,439 - - - 2,595,439 Held by OPEB Trustee:

Mutua l Fund 2,521,704 - - - 2,521,704 Held by Pension Section 115 Trustee:

Mutua l Fund 13,317,496 - - - 13,317,496
Deferred Compens a ti on Pl a n:

Mutua l Fund 373,569,449 - - - 373,569,449 Tota l 569,346,847$ -$ 529,517,986$ -$ 1,098,864,833 $ Level

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 61 (3) Accounts Receivable
As of June 30,
2021, the accounts receivable are categorized as follows:

Project
Management Non-Major
Capital Housing Governmental Internal
General Project Successor Funds Service Total
Governmental activities:

Accounts receivable 5,186,461 $ 1,731,363 $ 5,145 $ 9,724,056$ 110,983 $ 16,758,008 $ Accrued revenue
receivable 20,005,384 - - 7,717,947 345,652 28,068,983 Interest receivable 272,169 - (896) 365,113 109,306 745,692 Paramedics receivable 3,137,209 - - - - 3,137,209 Utility receivable 1,713,361 - - 601,139 - 2,314,500 30,314,584 1,731,363 4,249 18,408,255 565,941 51,024,392 Less: Allowance for
uncollectible amounts (2,045,027) - - (144,636) (2,189,663) Total 28,269,557$ 1,731,363$ 4,249$ 18,263,619$ 565,941$ 48,834,729$ Light and Off-Street Non-Major
Power Water Parking Proprietary Total
Business-type activities:

Accounts receivable 321,971$ 393,179$ 487,779$ 2,114$ 1,205,043$ 14,643,077 5,388,250 137,774 1,393,931 21,563,032 Interest receivable 418,338 157,404 34,329 24,532 634,603 Utility receivable 13,937,005 5,208,205 - 1,135,050 20,280,260 29,320,391 11,147,038 659,882 2,555,627 43,682,938 Less: Allowance for
uncollectible amounts (3,877,332) (1,448,700) - (312,824) (5,638,856) Total 25,443,059$ 9,698,338$ 659,882$ 2,242,803$ 38,044,082$ A
ccrued revenue receivable

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 62 Annual Comprehensive Financial Report | June 30, 2021 (4) Notes Receivable – Primary Government
The notes receivable in the G
overnmental Funds amounted to $93,013,040 at June 30, 2021. $53,322,822 consisted of primarily Housing and Community Deve lopment loans, which arose from the sale of land to project developers and other agencies, and the provision of loan assistance unde r the City’s affordable housing programs, subject to approved redevelopment plans. $21,34 0,218 consisted of loans that the former redevelopment agency made to assist the development of affordable rental housing projects and the purchase of homes by homebuyers. These loans are secured by trust deeds and were funded with redevelopment low-moderate income housing set-aside funds.

These notes have various terms, including maturities ranging from 5 to 45 years and interest rates ranging from 1.5% to 11%. Due to the uncertainty of th eir collectability at June 30, 2021, the City has recorded an allowance for uncollectible long-term receivables of $79,507,645.

In January 2009, Light and Po wer utilized $80 million of Reserves for Stranded Investment and in return received Subordinated Notes totaled $70 million from Intermountain Power Agency (IPA) to defease some of IPA’s outstanding debt service requirement for Intermountain Power Project (IPP) bonds. These notes have various maturity dates, and the proceeds, when mature, will be us ed to stabilize future energy costs. The balance of the notes as of June 30, 2021 is $ 8,046,667.

In May 2020, the City sold the Concord property at 275 Cordova St and resulted in $18,350,000 notes receivable.

The City expects to receive $13,505,395 in eighteen mont hs and the rest in 55 years. Due to the nature of the contingency, the City recognized $4,844,605 as allowance. (5) Due to and from Other Funds
Current interfund receivable and payable balances a
t June 30, 2021 are as follows:

Due from Other Funds
Due to Other Funds General Fund Total
Non-Major Governmental Funds 9,024,239$ 9,024,239$ Internal Service Funds 12,293,255 12,293,255
Total 21,317,494$ 21,317,494$
The above balances are due to short term payable be
tween funds and negative cash balances at the end of the fiscal year.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 63 (6) Advances to and from Other Funds
Primary Government
Long-term interfund
receivable and payable balances at June 30, 2021 are as follows:

Advances to Other funds
Li ght
and Power
Advances from Other funds Fund Total
General Fund 220,000$ 220,000$
Total 220,000$ 220,000$
Outstanding at
June 3
0, 2021
Light and Power
On May 14, 2012,
City Council authorized a loan from Power Fund of Pasadena Water and Power (PWP) to Public Works Department (Public Works) and appropriated it to the FY 2013 Capital Improvement Program Budget for the repair and/or replacement of existing street lighting systems CIP Project. Public Works agreed to repay the loan to PWP in ten equal annual installments of $1 10,000 each on January 31 of each year starting on January 31, 2014 and ending on January 31, 2023. $ __220,000 Total advances between City f
unds $ 220,000

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 64 Annual Comprehensive Financial Report | June 30, 2021 (7) Capital Assets
Primary Government
Capital asset activity for the
year ended June 30, 2021 is as follows:

Balance at Transfers and Balance at
Governmental activities June 30, 2020 Additions Deletions Adjustments June 30, 2021 Depreciable assets:

Buildings and improvements 299,099,042$ -$ (278,342)$ 1,673,610$ 300,494,310$ Machinery and equipment 86,022,530 3,079,086 (1,651,260) 3,755,948 91,206,304 Infrastructure 356,047,483 - (48,705,970) 21,163,066 328,504,579 Total cost of depreciable assets 741,169,055 3,079,086 (50,635,572) 26,592,624 720,205,193 Less accumulated depreciation:

Buildings and improvements (142,003,469) (6,370,140) 269,316 - (148,104,293) Machinery and equipment (48,721,468) (7,129,527) 1,504,296 - (54,346,699) Infrastructure (159,152,689) (7,537,542) 47,207,206 - (119,483,025) Total accumulated depreciation (349,877,626) (21,037,209) 48,980,818 - (321,934,017) Net depreciable assets 391,291,429 (17,958,123) (1,654,754) 26,592,624 398,271,176 Capital assets not depreciated:

Land 87,336,607 - - - 87,336,607
Construction in progress 34,458,339 14,723,518 (64,469) (26,592,624) 22,524,764 Total cost of non-depreciable assets 121,794,946 14,723,518 (64,469) (26,592,624) 109,861,371 Capital assets, net 513,086,375$ (3,234,605)$ (1,719,223)$ -$ 508,132,547$ During the year, governmental activities received proce eds of $91,548 from the disp osal of capital assets and incurred a loss on disposal of $1,627,675.

Depreciation expense was charged in the following functions and activities in the statement of activities:

General government 7,070,551$
Public safety 1,102,188
Transportation 2,470,925
Health 156,741
Culture and leisure 1,384,210
Community development 6,355,866
Computing and communication 1,274,425
Building maintenance 593
Fl eet mai ntenance 1,217,459
Fleet repair and maintenance 4,251
21,037,209$

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 65 (7) Capital Assets (Continued)
Primary Government (Continued)
Balance at Transfers and Balance at
Business-type activities June 30, 2020 Additions Deletions Adjustments June 30, 2021 Depreciable assets:

Buildings and improvements 141,800,326$ -$ (46,419)$ 241,838$ 141,995,745$ Utility lines, machinery, and equipment 1,158,295,611 2,106,530 (4,563,945) 53,202,164 1,209,040,360 Total cost of depreciable assets 1,300,095,937 2,106,530 (4,610,364) 53,444,002 1,351,036,105 Less accumulated depreciation:

Buildings and improvements (64,314,203) (3,802,742) 46,434 - (68,070,511) Utility lines, machinery, and equipment (544,726,467) (39,883,874) 4,155,540 - (580,454,801) Total accumulated depreciation (609,040,670) (43,686,616) 4,201,974 - (648,525,312) Net depreciable assets 691,055,267 (41,580,086) (408,390) 53,444,002 702,510,793 Capital assets not depreciated:

Land 14,676,030 - (837) - 14,675,193
Construction in progress 71,153,143 64,796,953 - (53,444,002) 82,506,094 Total cost of nondepreciable assets 85,829,173 64,796,953 (837) (53,444,002) 97,181,287 Capital assets, net 776,884,440$ 23,216,867$ (409,227)$ -$ 799,692,080$ During the year, business-type activiti es received proceeds of $71,08 3 from the disposal of capital assets and
incurred a loss on disposal of $338,144.

Depreciation expense was charged in the following functions in the statement of activities:

Electric 32,271,007$
Water 8,941,395
Refuse 691,857
Parking 1,631,566
Telecommunication 150,791
43,686,616$
Fiduciary Funds – Private-Pur
pose Trust Fund
Balance at Balance at
Fiduciary Funds June 30, 2020 Additions Deletions June 30, 2021 Capital assets not depreciated:

Land 214,261$ -$ -$ 214,261$
Total cost of nondepreciable assets 214,261 - - 214,261 Capital assets, net 214,261$ -$ -$ 214,261$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 66 Annual Comprehensive Financial Report | June 30, 2021 (8) Deferred Inflows and Outflows
Primary Government
Deferred outflows on the
government-wide statement of net position consists of the following at June 30, 2021:

Govermental Activities Balance at Balance at
June 30, 2020 Increase Decrease June 30, 2021
2015A Refunding COP Deferred Charges 4,337,618 $ -$ (246,689)$ 4,090,929$ 2020A Refunding POB Deferred Charges 12,788,637 - (514,979) 12,273,658 2020B Refunding POB Deferred Charges 6,272,444 - (351,726) 5,920,718 GASB 68 Contribution Subsequent to Measurement Date 47,121,534 51,421,992 (47,121,534) 51,421,992 GASB 68 Net Difference on Pension Plan Investments - 9,891,122 - 9,891,122 GASB 68 Change of Assumptions 19,730,575 8,964,309 (19,730,575) 8,964,309 GASB 68 Difference in Experience 7,339,453 5,762,033 (7,339,453) 5,762,033 GASB 75 Change of Assumptions 8,542,742 11,187,954 (8,542,742) 11,187,954 GASB 75 Net Difference on Pension Plan Investments 3,046 - (3,046) - GASB 68 FPRS Net Difference on Pension Plan
Investments 2,131,000 - (2,131,000) -
108,267,049$ 87,227,410$ (85,981,744)$ 109,512,715$ Business-type Activities Balance at Balance at
June 30, 2020 Increase Decrease June 30, 2021
1998 Electric Bonds Deferred Charges 325,391 $ -$ (108,463)$ 216,928$ 2002 Electric Bonds Deferred Charges 292,995 - (292,995) - 2008 Electric Bonds Deferred Charges 909,034 - (53,473) 855,561 2019 Electric Bonds Deferred Charges (817,107) 200,107 - (617,000) 2003 Water Bonds Deferred Charges 198,484 - (66,161) 132,323 GASB 68 Contribution Subsequent to Measurement Date 10,051,710 11,373,463 (10,051,710) 11,373,463 GASB 68 Net Difference on Pension Plan Investments - 2,132,880 - 2,132,880 GASB 68 Change of Assumptions 1,533,668 - (1,533,668) - GASB 68 Difference in Experience 1,100,081 659,296 (1,100,081) 659,296 GASB 75 Change of Assumptions 2,544,909 2,921,224 (2,544,909) 2,921,224 GASB 75 Net Difference on Pension Plan Investments 908 - (908) - 16,140,073$ 17,286,970$ (15,752,368)$ 17,674,675$

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 67 (8) Deferred Inflows and Outflows (Continued)

Deferred inflows on the government-wide statement of net assets consists of the following at June 30, 2021:

Governmental Activities
Balance at Balance at
June 30, 2020 Increase Decrease June 30, 2021
GASB 68 Change of Assumptions 3,963,269$ 1,184,883$ (3,963,269)$ 1,184,883$ GASB 68 Difference in Experience 5,798,643 4,075,060 (5,798,643) 4,075,060 GASB 68 Net Difference on Pension Plan Investments 5,099,303 - (5,099,303) - GASB 75 Change of Assumptions 304,527 156,707 (304,527) 156,707 GASB 75 Difference in Experience 4,669,610 3,994,348 (4,669,610) 3,994,348 GASB 75 Differences between Projected and Actual
Earnings on OPEB Plan Investments 16,073 136,284 (16,073) 136,284 GASB 68 FPRS Net Difference in Experience - 10,243,000 - 10,243,000 19,851,425$ 19,790,282$ (19,851,425)$ 19,790,282$

Business-type Activities Balance at Balance at
June 30, 2020 Increase Decrease June 30, 2021
GASB 68 Change of Assumptions 905,221 $ 310,008 $ (905,221) $ 310,008 $ GASB 68 Difference in Experience 660,006 945,356 (660,006) 945,356 GASB 68 Net Difference on Pension Plan Investments 1,212,396 - (1,212,396) - GASB 75 Change of Assumptions 90,719 40,917 (90,719) 40,917 GASB 75 Difference in Experience 1,391,092 1,042,943 (1,391,092) 1,042,943 GASB 75 Differences between Projected and Actual
Earnings on OPEB Plan Investments 4,789 35,584 (4,789) 35,584 4,264,223$ 2,374,808 $ (4,264,223) $ 2,374,808 $

Deferred inflows on the governmental funds consists of the following at June 30, 2021:

Project
Management
General Capital Non-Major Total
Fund Projects Governmental Governmental
Unavailable revenues 540,893$ 1,619,031$ 6,996,867$ 9,156,791$ 540,893$ 1,619,031$ 6,996,867$ 9,156,791$

In accordance with GASB Statement No. 33 revenue re cognition requirements, the following revenues have been deferred because they were not available at year end: $540,893 of park projects, $1,619,031 of capital improvement projects, $31,955 of Public Safety grants, $653,149 of Health grants, $424,486 of Transportation services, and $5,887,277 of Housing grants.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 68 Annual Comprehensive Financial Report | June 30, 2021 (9) Long-Term Debt and Other Liabilities
Primary Government
Changes in long-term debt and other liabilities for the year ended June 30, 2021 are as follows:

Due in
Balance at Balance at Due Within More Than
Governmental Activities: June 30, 2020 Additions Reductions June 30, 2021 One Year One Year Notes payable:

Notes from Direct Borrowings
(Rose Bowl) 471,481 $ -$ (16,156)$ 455,325$ 16,495$ 438,830$ Section 108 4,800,000 - (300,000) 4,500,000 300,000 4,200,000 Total Notes Payable 5,271,481 - (316,156) 4,955,325 316,495 4,638,830 Pension bonds:
2015 Taxable Pension Obligation Bonds 6,845,000 - (890,000) 5,955,000 1,075,000 4,880,000 Bond Premiums/(Discount) (81,051) - 16,769 (64,282) - (64,282) 2020 Taxable Pension Obligation Bonds 129,975,000 - (980,000) 128,995,000 995,000 128,000,000 Total Pension Bonds 136,738,949 - (1,853,231) 134,885,718 2,070,000 132,815,718 Certificates of Participation:
2015 COP Series A Refunding 2008 COP 50,850,000 - (1,995,000) 48,855,000 2,090,000 46,765,000 Bond Premiums/(Discount) 4,627,731 - (263,189) 4,364,542 - 4,364,542 Total Certificates of Participation 55,477,731 - (2,258,189) 53,219,542 2,090,000 51,129,542 Capitalized lease obligations 6,811,926 - (935,876) 5,876,050 939,341 4,936,709 Subtotal governmental activity long-term
obligations 204,300,087 - (5,363,452) 198,936,635 5,415,836 193,520,799 Other:

Compensated absences 12,136,891 10,579,215 (9,740,019) 12,976,087 9,740,019 3,236,068 Insurance claim
s payable 40,239,238 35,024,507 (33,219,552) 42,044,193 18,243,117 23,801,076 Total governmental activity long-term
liabilities 256,676,216$ 45,603,722$ (48,323,023)$ 253,956,915$ 33,398,972$ 220,557,943$ Due in
Balance at Balance at Due Within More Than
Business-type Activities: June 30, 2020 Additions Reductions June 30, 2021 One Year One Year Revenue bonds:
2010A Electric Revenue Refunding Bonds 5,000,000 $ - $ (5,000,000) $ -$ -$ -$ 2010A Water Revenue Bonds (Taxable
Build America) 25,425,000 - (25,425,000) - - - 2011A Water Revenue Bonds
(Refunding Bonds) 15,065,000 - (1,210,000) 13,855,000 1,210,000 12,645,000 2012A Electric Revenue Refunding Bonds 4,405,000 - (570,000) 3,835,000 3,835,000 - 2013A Electric Revenue Refunding Bonds 74,335,000 - (1,735,000) 72,600,000 5,140,000 67,460,000 2016A Electric Revenue Refunding Bonds 111,620,000 - (2,870,000) 108,750,000 3,015,000 105,735,000 2017A Water Revenue Refunding Bonds 13,095,000 - (555,000) 12,540,000 580,000 11,960,000 2019A Electric Revenue Refunding Bonds 11,575,000 - (3,205,000) 8,370,000 1,940,000 6,430,000 2020A Water Revenue Refunding Bonds - 30,130,000 (820,000) 29,310,000 930,000 28,380,000 Total Water and Power 260,520,000 30,130,000 (41,390,000) 249,260,000 16,650,000 232,610,000 2008 Paseo Colorado Taxable Revenue
Bonds 22,000,000 - (800,000) 21,200,000 800,000 20,400,000 Bond Premiums/(Discounts) 29,038,207 8,944,012 (1,988,871) 35,993,348 - 35,993,348 Total Revenue Bonds 311,558,207 39,074,012 (44,178,871) 306,453,348 17,450,000 289,003,348 Capitalized lease obligations 2,824,168 (440,045) 2,384,123 451,872 1, 932,251 Total business-type activity long-term
liabilities 314,382,375$ 39,074,012$ (44,618,916)$ 308,837,471$ 17,901,872$ 290,935,599$

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 69 (9) Long-Term Debt and Other Liabilities (Continued)
Discretely Presented Component Units
Changes in discretely presented
component units’ long-term debt and other liabilities for the year ended June 30, 2021 are as follows:

Additions Due in
Balance at Including Balance at Due Within More Than
Discretely Presented Component Units June 30, 2020 Accretion Reductions June 30, 2021 One Year One Year Certificates of participation:
2006 COP (CONFERENCE CENTER PROJECT) 14,977,587$ 723,566$ (5,145,000)$ 10,556,153$ 5,490,000$ 5,066,153$ 2008 Refunding COP Series 2008A
(Conference Center Project) 134,720,000 - - 134,720,000 - 134,720,000 Total Certificates of Participation 149,697,587 723,566 (5,145,000) 145,276,153 5,490,000 139,786,153 Revenue Bonds:
2010A Revenue Bonds-Tax Exempt 23,455,191 1,482,345 (1,655,000) 23,282,536 - 23,282,536 2010B Revenue Bonds-Taxable Build America Bonds 106,660,000 - - 106,660,000 - 106,660,000 2010C Revenue Bonds-Taxable - - - - - -
2010D Revenue Bonds-Taxable Recovery 7,400,000 - - 7,400,000 - 7,400,000 2016A Revenue Bonds-Partial Refunding
2010A Bonds 21,865,000 - - 21,865,000 1,980,000 19,885,000 2016A Bond Premium (Discount) 3,713,867 - (550,203) 3,163,664 - 3,16 3,664 2018A Revenue Bonds-Refunding /
Tax Exempt Fixed Rate 30,585,000 - - 30,585,000 - 30,585,000 2018B Revenue Bonds-Taxable 11,060,000 - (1,655,000) 9,405,00 0 1,865,000 7 ,540,000
2018AB Bond Premium/(Discount) 4,200,358 - (178,323) 4,022,035 - 4,022,035 Total Revenue Bonds (Rose Bowl
Renovation) 208,939,416 1,482,345 (4,038,526) 206,383,235 3,845,000 202,538,235 Energy Conservation Loan 774,600 - (293,841) 480,759 305,560 175,199 Skating Rink Loan 167,208 - (167,208) - - -
Golf Equipment Finance 672,994 - (51,767) 621,227 51,769 569,458 Compensated absences 294,912 182,124 (215,727) 261,309 208,265 53,044 Total discretely presented component units
long-term liabilities 360,546,717$ 2,388,035$ (9,912,069)$ 353,022,683$ 9,900,594$ 343,122,089$ Fiduciary Fund
s – Private-Purpose Trust Fund
Due in
Balance at Balance at Due Within More Than
Successor Agency to Pasadena Community June 30, 2020 Additions Reductions June 30, 2021 One Year One Year Development Commission (PCDC):

Tax allocation bonds:
2006 Tax Allocation Refunding Bonds (Fair Oaks) 435,000 $ - $ (210,000) $ 225,000$ 225,000$ -$ Total tax allocation bonds 435,000 - (210,000) 225,000 225,000 - Total Successor Agency to PCDC long-term liabilities 435,000$ -$ (210,000) $ 225,000$ 225,000$ -$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 70 Annual Comprehensive Financial Report | June 30, 2021 (9) Long-Term Debt and Other Liabilities (Continued)
Governmental Activities:

Final
Principal
Issue Original Coupon Payment Outstanding at
Date Purpose Amount Interest Rate Date June 30, 2021
Detail of Long-Term Debts
Governmental Activities:

Notes payable:

Notes Payable - RBOC 1/15/2013 a 575,642 $ 2.10% 1/7/2043 455,325$ Notes Payable - Section 108 10/29/2015 c 6,000,000 variable 8/1/2035 4,500,000 Total Notes Payable 4,955,325$
Pension bonds:
2015 Unrefunded Taxable Pension Obligation Bonds 5/5/2015 b 119,460,000$ 2.824% to 3.465% 5/1/2025 5,955,000$ 2020 Taxable Pension Obligation Bonds 2/26/2020 b 131,805,000 1.601% to 3.097% 5/1/2045 128,995,000 Bond Premium (Discount) (64,282)
Total Pension Bonds 134,885,718$
Certificates of Participation:
2015 COP Series A Refunding 2008 COP 12/2/2015 d 55,350,000$ 3.0% to 5.0% 2/1/2038 48,855,000$ Bond Premium (Discount) 4,364,542
Total Certificates of Participation 53,219,542$
Capitalized Lease Obligations:
2020 Equipment Lease-Radio Equipment 1/15/2020 e 6,800,000 1.659% 1/15/2027 5,876,051 Total Capitalized Lease Obligations 5,876,051$
Business-type Activities:

Final
Principal
Issue Original Coupon Payment Outstanding at
Date Purpose Amount Interest Rate Date June 30, 2021
Detail of Long-Term Debts
Business-Type Activities:

Revenue bonds:
2008 Paseo Colorado Taxable Revenue Bonds 9/17/2008 f 28,800,000 variable 6/1/2038 21,200,000$ 2011A Water Revenue/Refunding Bonds 12/20/2011 i 29,770,000 3.0% to 5.0% 6/1/2033 13,855,000 2012A Electric Revenue Refunding Bonds 10/4/2012 g 11,780,000 1.0% to 4.0% 6/1/2022 3,835,000 2013A Electric Revenue Refunding Bonds 12/3/2013 j, k 80,485,000 4.25% to 5.0% 6/1/2043 72,600,000 2016A Electric Revenue Refunding Bonds 11/7/2016 l 119,440,000 4.0% to 5.0% 6/1/2046 108,750,000 2017A Water Revenue Refunding Bonds 3/13/2017 m 15,395,000 5.000% 6/1/2036 12,540,000 2019A Electric Revenue/ Refunding Bonds 8/1/2019 n 11,575,000 5.000% 8/1/2024 8,370,000 2020A Water Revenue Refunding Bonds 12/1/2020 h 30,130,000 5.000% 6/1/2050 29,310,000 Bond Premium (Discount) 35,993,348
Total Revenue Bonds 306,453,348$
Capitalized Lease Obligations:
2019 Equipment Lease-Parking System 4/1/2019 e 3,252,694 2.670% 4/1/2026 2,384,123$ Total Capitalized Lease Obligations 2,384,123$

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 71 (9) Long-Term Debt and Other Liabilities (Continued)
Component Unit
Activities:

Final
Principal
Issue Original Coupon Payment Outstanding at
Date Purpose Amount Interest Rate Date June 30, 2021
Detail of Long-Term Debts
Discretely Presented Component Units
Certificates of Participation
2006 COP (Conference Center Project) 8/23/200 6 CC1 27,139,972 3.85% to 4.81% 2/1/2023 10,556,153$ 2008 Refunding COP, Series 2008A
(Conference Center Project) 4/15/2008 CC2 134,720,000 variable 2/1/2035 134,720,000 Total Certificates of Participation (PCOC) 145,276,153$ Revenue Bonds
2010A Revenue Bonds-Tax Exempt
Capital Appreciation 11/18/2010 RB1 11,588,265 6.43% to 6.52% 3/1/2033 23,282,536 2010B Revenue Bonds-Taxable Build
America Bonds 11/18/2010 RB1 106,660,000 6.998% to 7.148% 3/1/2043 106,660,000 2010D Revenue Bonds-Taxable
Recovery Zone Economic Development 11/18/2010 RB1 7,400,000 7.148% 3/1/2043 7,400,000 2016A Revenue Bonds -
Partial Refunding 2010A Bonds 10/5/2016 RB3 21,865,000 5.000% 4/1/2027 21,865,000 2016A Bond Premium (Discount) 3,163,665
2018A Revenue Bonds - (Refunding
2013A Tax Exempt) 12/6/2018 RB2 30,585,000 5.000% 12/1/2042 30,585,000 2018B Revenue Bonds-(Refunding
2013B Taxable) 12/6/2018 RB2 12,515,000

2.604% to

3.575% 12/1/2027 9,405,000
2018 AB Bond Premium (Discount) 4,022,03
6 Total
Revenue Bonds (RBOC) 206,383,236$
Fiduciary Fund Activities:

Final
Principal
Issue Original Coupon Payment Outstanding at
Date Purpose Amount Interest Rate Date June 30, 2021
Fiduciary Funds
Successor Agency to Pasadena Community
Development Commission (PCDC):

Tax Allocation bonds:
2006 Tax Allocation Refunding Bond (Fair 5/17/2006 T1 2,470,000 3.8% to 4.9% 7/1/2021 225,000$ Oaks)
Total tax allocation bonds 225,000$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 72 Annual Comprehensive Financial Report | June 30, 2021 (9) Long-Term Debt and Other Liabilities (Continued)
a Refund 2006 Revenue Bonds
b Fire and Police Retirement
c Section 108 Note for Robinson Park Improvements
d Partially refund 2008 Certificates of Participation City Hall e Equipment Purchases, assets purchased collateralized debt f Refund 2000 Paseo Bonds
g Refund partial 2002/ 2003 Electric Bonds
h Refund 2010A Water Revenue Bonds
i Refund partial 2003 Water Bonds
j GT5 Improvements
k Refund 2002 Electric Bonds and Capital Improvements to the Electric System l Refund 2008 Electric Bonds, repay Line of Credits and Capital Improvement to the Electric System m Refund 2007 Water Bonds
n Refund 2009 Electric Bonds and Capital Improvement to the Electric System CC1 Conference Center Improvements
CC2 Refund 2006B Certificates of Participation
RB1 Rose Bowl Stadium Renovation
RB2 Refund 2013 Rose Bowl Revenue Bonds
RB3 Partial refund 2010A Rose Bowl Revenue Bonds
T1 Fair Oaks Redevelopment Project & Public Improvement Program Purpose of Debt:

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 73 (9) Long-Term Debt and Other Liabilities (Continued)

The annual requirements to amortize as of June 30, 2021, are as follows:

Governmental Activities:

Year Ending
June 30 Principal Interest Principal Interest Principal Interest 2022 316,495 $ 141,310 $ 2,070,000 $ 3,954,375 $ 2,090,000 $ 2,205,150 $ 2023 316,842 133,288 2,355,000 3,904,603 2,195,000 2,100,650 2024 317,195 125,187 2,410,000 3,844,684 2,310,000 1,990,900 2025 317,556 116,897 3,210,000 3,780,052 2,420,000 1,875,400 2026 317,925 108,419 3,305,000 3,685,783 2,545,000 1,754,400 2027-2031 1,595,433 405,435 17,625,000 17,335,155 14,745,000 6,733,250 2032-2036 1,605,883 152,840 23,890,000 14,811,885 14,445,000 3,362,975 2037-2041 117,478 12,808 37,570,000 10,917,296 8,105,000 489,400 2042-2046 50,517 1,597 42,515,000 3,495,474 - - Bond Premium (Discount) - - (64,282) - 4,364,542 - Total Payment 4,955,325$ 1,197,781 $ 134,885,718 $ 65,729,307 $ 53,219,542 $ 20,512,125 $ Pension BondsNotes Payable Certificates of Participation

Year Ending
June 30 Principal Interest
2022 939,341 $ 93,604 $
2023 954,989 77,956
2024 970,898 62,047
2025 987,072 45,873
2026 1,003,516 29,429
2027-2031 1,020,233 12,712
Total Payment 5,876,050 $ 321,621 $
Capi tal i zed Lease

Business-type Activities:

Year Ending
June 30 Principal Interest Principal Interest
2022 17,450,000$ 11,789,205$ 451,872$ 60,660$ 2023 10,900,000 11,002,655 464,017 48,514 2024 11,220,000 10,509,780 476,489 36,042 2025 11,735,000 10,000,930 489,297 23,235 2026 9,820,000 9,541,305 502,448 10,085 2027-2031 55,495,000 40,985,950 - - 2032-2036 65,180,000 27,946,600 - - 2037-2041 51,350,000 14,616,750 - - 2042-2046 34,720,000 4,482,550 - - 2047-2051 2,590,000 331,750 - - Bond Premium (Discount) 35,993,348 - - - Total Payment 306,453,348$ 141,207,475$ 2,384,123$ 178,536$ Capitalize d L e aseRevenue Bonds

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 74 Annual Comprehensive Financial Report | June 30, 2021 (9) Long-Term Debt and Other Liabilities (Continued)
Fiduciary Funds
Year Ending
June 30 Principal Interest
2022 225,000 $ 5,513$
Total Payment 225,000$ 5,513$
Tax Allocation Bonds
New Debt Issued in Fisc
al Year Ended June 30, 2021
Water Revenue/Refunding B
onds, 2020A Series
On December 1, 2020, the City issued the Water Revenu e/Refunding Bonds, Series 2020A (2020A Revenue Bonds) in the amount of $30,130,000 to refund the 2010A Water Revenue Bonds, finance the costs of acquisition and construction of certain capital improvements to the Wa ter System, and pay the costs of issuance of the 2020A Revenue Bonds. The rate of interest is 5.00% payable se mi-annually on December 1 and June 1 of each year, commencing June 1, 2021. Principal is payable in annua l installments ranging from $450,000 to $1,525,000 commencing June 1, 2021 and ending June 1, 2050. The Ci ty realized debt service savings of $9.16 million and a present value savings of $8.26 million. The true interest cost of the financing was 1.89%.

Disclosure Related to Long-Term Debt under GASB 88
The City’s outstanding notes from direct borrowings related to government activities of $455,325 is payable to Rose Bowl Operating Company, resulting from the refunding of revenue bonds activities in 2013 and does not have any special provision.

The City’s outstanding Notes Payable – Section 108 relating to government activities are payable from the annual allocation of Community Development Block Grant Funds (CDBG).

In regards to the 2020AB and 2015B Pension Obligation Bo nds (POBs), the debt service payments are secured by revenue received by the General Fund.

In case of a default, the following is the course of action:

The Trustee will, by written notice to the City and th e Paying Agent, declare imme diately due an d payable the principal and Accreted Value of the accrued interest on all Outstanding Bonds of such Series, whereupon the same become immediately due and payable with any further action or notice.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 75 (9) Long-Term Debt and Other Liabilities (Continued)
Disclosure Rel
ated to Long-Term Debt under GASB 88 (Continued)
In regards to the 2015A Certificates of Participation, the City’s outstanding bonds from public offerings related to government activities are payable from and secured by revenu e received by the City. In case of the City’s default, the following is the course of action:

The Authority or its assignee, in addition to all other right s and remedies it may have at law, will have the option to do the following:
(1) To terminate the Sublease in the manner provided in the Sublease on account of default by the City, and to retake possession of the Lease Property. In the event of such termination, the City agrees to surrender immediately possession of the Lease Property, without let or hindrance, and to pay the Authority or its assignee all damages recoverable at law that the Authority or its assignee may incur by reason of default by the City, including, without limitation, any costs, loss or damage whatsoever arising out of, in connection with, or incident to any such retaking possession of the Lease Property. Neither notice to pay rent nor to deliver up possession of the Lease Property given pursuant to law nor any proceeding in unlawful detainer, or otherwise, brought by the Authority or its assignee for the purpose of obtaining possession of the Leased Property nor the appointment of a receiver upon initiative of the Authority or its assignee to protect the Authority’s or its assignee’s interest under the Sublease shall of itself operate to terminate the Sublease, and no termination of the Sublease on account of default by the City shall be or become effective by operation of law or acts of the parties hereto, unless and until the Authority or its assignee shall have given written notice to the City of the election on the part of the Authority or its assignee to terminate the Sublease.
(2) Without terminating the Sublease, (i) to collect each installment of rent as it becomes due and enforce any other term or provision of the Sublease to be kept or performed by the City and/or (ii) to exercise any and all rights to retake possession of the Lease Property. In the event the corporation or its assignee does not elect to terminate the Sublease in the manner described in subparagraph (1) above, the City will remain liable and agrees to keep or perform all covenants and conditions contained in the Subl ease to be kept or performed by the City and, to pay the rent to the end of the term of the Sublease or, in the event that the Lease Property is re-let, to pay any deficiency in the rent that results therefrom; and further agrees to pay said rent and/or the payment of rent under the Sublease (without acceleration), notwithstanding the fact that the Authority or its assignee may have received in previous years or may receive thereafter in s ubsequent years rental in excess of the rental specified in the Sublease and notwithstanding any retaking of possession of the Leased Property by the Authority of its assignee or suit in unlawful detainer, or otherwise, brou ght by the Authority or its assignee for the purpose of obtaining possession of the Leased Property. Should the Authority or its assignee elect to retake possession of the Lease Property as provided in the Sublease, the City irrevocably appoints the Authority or it assignee as the agent and attorney-in-fact of the City to re-let the Lease Property, or any items thereof, from time to time, either in the Authority’s or its assignee’s name or otherwise, upon such terms and conditions and for such use and period as the Authority or its assignee may deem advisable and the City indemnifies and agrees to save harmless the Authority or its assignee from any costs, loss or dam age whatsoever arising out of, in connection with, or incident to any retaking of possession of and re-letting of the Lease Property by the Authority or its assignee or its duly authorized agents in accordance with the provisions contained in the Sublease. The City agrees that the terms of the Sublease constitute full and sufficient notice of the right of the Authority or its assignee to re-let the Lease Property in the event of such reentry without effecting a surrender of the Sublease, and further agrees that no acts of the Authority or its assignee in effecting such re-letting with constitute a surrender of termination of the Sublease irrespective of the use or the terms for which such re-letting is made or the terms and conditions of such re-letting, or otherwise, but that on the contrary, in the event of such default by the City the right to terminate the Sublease will vest in the Authority or its assignee to be effected in the sole and exclusive manner described in subparagraph (1) above. The City further waives the right to rental obtained by the Authority or its assignee in excess of the rental specified in the Sublease and conveys and release such excess to the Authority or

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 76 Annual Comprehensive Financial Report | June 30, 2021 (9) Long-Term Debt and Other Liabilities (Continued)
Disclosure Related to
Long-Term Debt under GASB 88 (Continued)
its assignee as compensation to the Authority or its assignee for its services in re-letting the Lease Property or any items thereof. The City further agrees to pay the Authority or its assignee the cost of any alterations or repairs to the Lease Property or any items thereof necessary to place the Leased Property or any items thereof in conditions for re-letting immediately upon notice of the City of the completion and installation of such alterations or repairs.

The City waives any and all claims for damages caused or which may be caused by the Authority or its assignee in taking possession of the Leased Property as provided in the Sublease and all claims for the damages that may result from the destruction of or injury to the Leased Property and all claims for damages to or loss of any property belonging to the City, or any other person, that may be on about the Leased Property.

The Authority expressly waives the right to receive any amount from the City pursuant to Section 1951.2(a)(3) of the California Civil Code.

In addition to any default resulting from breach by the City of any agreement, condition, covenant or term of the Sublease, if( 1) the City’s interest in the Sublease or any part thereof be assigned, sublet or transferred without the written consent of the Authority (except as otherwise permitted by the Sublease), either voluntarily or by operation of law; or (2) the City or any assignee will file any petition or institute any proceeding under any act or acts, state of federal, dealing with or relating to the subject of bankruptcy or insolvency or under any amendment of such act or acts, either as a bankrupt or as an insolv ent or as a debtor or in any similar capacity, wherein or whereby the City asks or seeks or prays to be adjudicated a bankrupt, or is to be discharged from any or all of its debts or obligations, or offers to its creditors to effect a composition or extension of time to pay its debts, or asks, seeks or prays for reorganization or to effect a plan of reorganization or for a readjustment of its debts or for any other similar relief, or if the City will make a general or any assignment for the benefit of its creditors; or (3) the City will abandon or vacate the Leased Property or any portion thereof (except as permitted by the Sublease); then in each and every such case the City will be deemed to be default under the Sublease.

Neither the City nor the Authority will be default in the performance of any of its obligations under the Sublease (except for the obligation to make Base Rental Payments pursuant to the Sublease) unless and until it will have failed to perform such obligation within 30 days after notice by the City or the Authority, as the case may be, to the other party properly specifying wherein it has failed to perform such obligation.

The City’s outstanding Lease Revenue bonds from public offering related to business-type parking activities (Paseo Colorado Revenue Bonds, 2008 Series) are payable from and secured by revenue received by the City. In regards to the 2008 Paseo Colorado Revenue Bonds, the following is the remedy upon default:

The Authority, in addition to all other rights and remedies it may have at law, shall have the option to do any of the following:
(a) Terminate the Lease in the manner provided in the Lease on account of default by the City, notwithstanding ay re-entry or re-letting of the Lease Premises and remo ve all persons in possessio n thereof and all personal property whosesoever situation upon the Leased Premises and place such personal property in storage in any warehouse or other suitable place in the County of Los A ngeles, State of California, provided that the Leased Premises continue to be operated and maintained as a public off-street vehicular parking facility, subject to the provisions of the Development Agreements. In the event of such termination, the City agrees to surrender immediately possession of the Lease Premises, without let or hindrance, and to pay the Authority all damages recoverable at law that the Authority may incur by reason of default by the City, including, without limitation, any costs, loss or damage whatsoever arising out of, in connection with, or its duly authorized agents in

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2021 77 (9) Long-Term Debt and Other Liabilities (Continued)

Disclosure Related to Long-Term Debt under GASB 88 (Continued)

accordance with the provisions contained in the Lease. Ne ither notice to pay rent or to deliver up possession of the Lease Premises given pursuant to law nor any entry or re-entry by the Authority nor any proceeding in unlawful detainer, or otherwise, brought by the Authority for the purpose of effecting such re-entry or obtaining possession of the Leased Premises nor the appointment of a receiver upon initiative of the Authority to protect the Authority interest under the Lease, will of itself op erate to terminate the Lease , and no termination of the Lease on account of default by the City will be or become effective by op eration of law or acts of the parties to the Lease, or otherwise, unless and until the Authority gives written notice to the City and the Commission of the election on the part of the Authority to terminate the Lease. The City agrees that no surrender of the Lease Premises or of the remainder of the term of the Lease or any termination of the Lease will be valid in any manner or for any purpose whatsoever unless stated or accepted by the Authority by such written notice.

(b) Without termination the Lease, (i) to collect each installment of rent as it becomes due and enforce any other term or provision of the Lease to be kept or performed by the City or (ii) to exercise any and all rights of entry and re-entry upon the Leased Premises as provided. In the event the Authority does not elect to terminate the Lease in the manner provided for in the Lease, the City remains liable and agrees to keep or perform all covenants and conditions in the Lease contained to be kept or performed by the City and , if the Leased Premises are not re-let, to pay the full amount of the rent annually to the end of the term of the Lease or, in the event that the Leased Premises are re-let, to pay any deficiency in rent that results therefrom; and further agrees to pay said rent and/or rent deficiency punctually at the same time and in the same manner as provided in the Lease for the payment of rent under the Lease (without acceleration), notwithstanding the fact that the Authority may have received in previous years or may receive thereafter in s ubsequent years rental in excess of the rental specified in the Lease and notwithstanding any entry or re-entry by the Authority or suit in unlawful detainer, or otherwise, brought by the Authority for the purpose of effecting such re=entry or obtaining possession of the Lease Premises.

Should the Authority elect to re-enter as provided in the Lease, the City irrevocably appoints the Authority as the agent and attorney-in-fact of the City to re-let the Leased Premises, or any part thereof, from time to time, either in the Authority’s name or otherwise, for use as public off-street vehicular parking facility upon such terms and conditions and for such period as the authority may deem advisable and, subject to the provisions of the Development Agreement, to remove all persons in possession thereof and all personal property whosesoever situated in and upon the Leased Premises and to place such personal property in storage in any warehouse or other suitable place in the County of Los Angeles, State of California, for the account of and at the expense of the City, and the City exempts and agrees to save harml ess the Authority from any costs, loss or damage whatsoever arising out of, in connection with, or incident to any such re-entry upon and re-letting of the Lease Premises and removal storage of such property by the Authority or its duly authorized agents in accordance with the provisions contained in the Lease; provided, however, that any such re-entry upon and re-letting of the Leased Premises its subject to the provisions of the Development Agreements. The City agrees that the terms of the Lease constitute full and sufficient notice of the righ t of the Authority to re-let the Leased Premises as provided in the Lease in the event of such re-entry without effecting a surrender of the Lease, and further agrees that no acts of th e Authority in effecting such re -letting will constitute a surrender or termination of the Lease irrespective of the use or the term for which such re-letting or otherwise, but that, on the contrary, in the event of such default by the City the right to terminate the Lease will vest in the Authority to be effected in the sole and exclusive manner provided for in the Lease. The City further waivers the right to any rental obtained by the Authority in excess of the rental specified in the Lease and conveys and releases such excess to the Authority as compensation to the Authority for its services in re-le tting the Leased Premises or any part thereof. The City further agrees to pay the Authority the cost of any alterations or additions to the Lease Premises or any part thereof necessary to place the Leased Premises or any part thereof in conditions for re-letting immediately upon notice to the City of the completion and installation of such additions or alterations.