AR 9 Attachment A - FY 2022 City of Pasadena Annual Comprehensive Financial Report (Unsecured for Internal Use Only) — Pasadena City Council, April 24, 2023 (part 1 of 2)

C A LIF O R N I A

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

ATTACHMENT A
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OPENING

PASADENA

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CITY OF PASADENA, CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
Year Ended June 30, 2022
CYNTHIA J. KURTZ, INTERIM 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

IN MEMORIAM
Gene Masuda
Councilmember
District 4
Jessica C. Rivas
Councilmember
District 5
Steve Madison
Councilmember
District 6
Andy Wilson
Vice Mayor
District 7
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CITY OF PASADENA TABLE OF CONTENTS
Annual Comprehensive Financial Report | June 30, 2022 i

INTRODUCTORY SECTION
Letter of Transmittal .................................................................................................................................................................. vii Principal City Officials ................................................................................................................................................................xiv Organizational Chart .................................................................................................................................................................. xv GFOA Certificate of Achievement for Excellence in Financial Reporting ...................................................................................xvi

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, Expe nditures and Changes in Net Position ........................................................ 39

Notes to the Basic Financial Statements ...................................................................................... .......................................... 43

TABLE OF CONTENTS CITY OF PASADENA
ii Annual Comprehensive Financial Report | June 30, 2022 FINANCIAL SECTION (Continued)
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – General Fund ............................................................................................................... ........................................... 123 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – Housing Successor Fund ..................................................................................................... .................................... 124 Notes to Required Supplementary Information ............................................................................................................... 125 Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan ................................................. 126 Schedule of Plan Contributions – Miscellaneous Plan ...................................................................................................... 128 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan .............................................................. 130 Schedule of Plan Contributions – Safety Plan ................................................................................................................... 132 Schedule of Changes in Net Pension Liability and Related Ratios – Fire and Police Retirement System............................................................................................. ............................... 134 Schedule of Plan Contributions - Fire and Police Retirement System .............................................................................. 136 Schedule of Changes in the Net OPEB Liability and Related Ratios ................................................................................. 137 Schedule of OPEB Plan Contributions ............................................................................................................................... 138 Schedule of OPEB Plan Investment Return ....................................................................................................................... 139

Supplementary Information
Non-Major Governmental Funds
Combining Balance Sheet ...................................................................................................... .................................... 142 Combining Statement of Revenues, Expe nditures and Changes in Net Position ...................................................... 143

Special Revenue Funds
Combining Balance Sheet ...................................................................................................... .................................... 148 Combining Statement of Revenues, Expe nditures and Changes in Net Position ...................................................... 150

Budgetary Comparison Schedules
Public Safety Fund .......................................................................................................... .................................... 152 Health Fund ................................................................................................................. ....................................... 153 Building Services Fund ....................................................................................................... ................................. 154 Sewer Construction and Maintenance Fund…………………………………………………………………………………………………..155 Underground Utilities Fund ................................................................................................... ............................. 156 Transportation Fund .......................................................................................................... ................................. 157 Library Services Fund ....................................................................................................... ................................... 158 Parking Fund ................................................................................................................. ...................................... 159 Air Quality Improvement Fund ................................................................................................ ........................... 160 Housing and Community Development Fund ...................................................................................... .............. 161 Donated Fund ................................................................................................................ ..................................... 162

Capital Projects Funds
Combining Balance Sheet ...................................................................................................... .................................... 166 Combining Statement of Revenues, Expendi tures and Changes in Fund Balances ................................................... 168

CITY OF PASADENA TABLE OF CONTENTS
Annual Comprehensive Financial Report | June 30, 2022 iii FINANCIAL SECTION (Continued)
Permanent Funds
Combining Balance Sheet ...................................................................................................... .................................... 174 Combining Statement of Revenues, Expendi tures and Changes in Fund Balances ................................................... 176

Non-Major Enterprise Funds
Combining Statement of Net Position .......................................................................................... ............................. 182 Combining Statement of Revenues, Ex penses and Changes in Net Position ............................................................ 183 Combining Statement of Cash Flows ............................................................................................ ............................. 184

Internal Service Funds
Combining Statement of Net Position .......................................................................................... ............................. 190 Combining Statement of Revenues, Ex penses and Changes in Net Position ............................................................ 192 Combining Statement of Cash Flows ............................................................................................ ............................. 194

Fiduciary Funds
Combining Statement of Net Positio n – Employee Benefit Trust Funds .................................................................. 202 Combining Statement of Changes in Net Position – Employee Benefit Trust Funds ................................................ 203 Combining Statement of Net Position – Custodial Funds ......................................................................................... 204 Combining Statement of Changes in Assets and Liabilities – Custodial Funds ................................................... ....... 205

Combined Successor Agency Funds
Combining Statement of Net Position – Private Purpose Trust Funds ........................................................... .......... 210 Combining Statement of Changes in Net Position – Private Purpose Trust Funds ................................................... 212

Discretely Presented Component Unit
Rose Bowl Operating Company
Combining Statement of Net Position .......................................................................................... ............................. 218 Combining Statement of Revenues, Ex penses and Changes in Net Position ............................................................ 219

STATISTICAL SECTION
Net Position by Component ................................................................................................... .......................................... 224 Changes in Net Position ..................................................................................................... .............................................. 226 Fund Balances of Governmental Funds .......................................................................................... .................................. 230 Changes in Fund Balances of Governmental Funds ............................................................................... ........................... 232 Assessed Value and Actual Value of Taxable Property .......................................................................... ........................... 235 Direct and Overlapping Property Tax Rates .................................................................................... ................................. 236 Principal Property Taxpayers ................................................................................................. ........................................... 238 Property Tax Levies and Collections .......................................................................................... ....................................... 239 Taxable Sales by Category……………………………………………………………………………………………………………………………………………240 Electricity Sold by Type of Customer ......................................................................................... ....................................... 242 Electricity Rates ............................................................................................................ .................................................... 244 Electricity Customers ........................................................................................................ ................................................ 245 Ratios of Outstanding Debt by Type ........................................................................................... ...................................... 246 Ratios of General Bonded Debt Outstanding .................................................................................... ............................... 250

TABLE OF CONTENTS CITY OF PASADENA
iv Annual Comprehensive Financial Report | June 30, 2022 STATISTICAL SECTION (Continued)

Direct and Overlapping Debt……………………………………………………………………………………………………………………………………….253 Legal Debt Margin Information ................................................................................................ ........................................ 254 Pledged-Revenue Coverage – Governmental Activity Debt ........................................................................ ..................... 256 Pledged-Revenue Coverage –Business-Type Activity Debt ........................................................................ ...................... 258 Demographic and Economic Information ......................................................................................... ................................ 259 Principal Employers ......................................................................................................... ................................................ 261 Full-time and Part-time City Employees by Function ........................................................................... ............................ 262 Operating Indicators by Function ............................................................................................. ........................................ 264 Capital Asset Statist ics by Function .................................................................................................................................. 266 ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022

INTRODUCTORY

SECTION
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LETTER OF TRANSMITTAL CITY OF PASADENA

vi Annual Comprehensive Financial Report | June 30, 2022

March 17, 2023

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, 2022 (FY 2022) is hereby submitted in compliance with Section 907.5 of the City Charter. Management assumes full responsibility for the completeness and reliabilit y of the information contained in this report, based upon a comprehensive internal control framework it establish ed for this purpose. Becaus e, the cost of internal controls should not exceed anticipated benefits, the obje ctive is to provide reasonable assurance, rather than absolute assurance, that the financial statements are free of any material misstatement.

This report was prepared in accordance with Generally A ccepted 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 presented in a manner designed to fairly set forth the financial position and results of operations of the City and its component units, as measured by the financial activity 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 the year ended FY 2022 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 financial 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 2022 and that these financial statements are fairly presented in conformity with GAAP. The independent 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.

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 controls and complianc e with legal requirements, with emphasis on those involving the administration of federal awards. The auditor’s report on internal controls and comp liance will be available in the City’s separately issued Single Audit Report.

GASB requires that management provide a narrative intro duction, an overview, and an analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Pasadena’s MD&A can be found immediately following the report of the independent auditor.

LETTER OF TRANSMITTAL CITY OF PASADENA
viii Annual Comprehensive Financial Report | June 30, 2022

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 responsibilities 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 ordina nces, adopting the budget, appointing committees, and hiring the Ci ty's Manager, City Attorney/City Pros ecutor, 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 squa re miles in the northwestern portion of the San Gabriel Valley and has a 2022 population of 138,310, according to the California State Department of Finance. The City is bounded on the west by the cities of Los Angeles, Glendale, and La Cañada Flintridge; south by South Pasadena and San Marino; east by Arcadia and Sierra Madre; and north by the unincorporated community of Altadena.

REPORTING ENTITY AND ITS SERVICES
This report includes all funds of the City, as well as a ll its component units. Componen t units are legally separate entities for which the City is financ ially 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 Pasadena Fire and Police Retirement System (FPRS) are reported as part of the City. The Successor Agency to the Pasadena Community Development Commissio n is shown as a Private-Purpose Trust Fund reported in the Fiduciary Funds Section. Discre tely 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 the Pasadena Community Access Corporation (PCAC) are discretely presented component units. Separate financia l statements are also available for all three discretely presented component units. The City is a party to, and desig nated administrator for, two Joint 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 includin g public safety (police and fire), street construction and maintenance, refuse collection, water, power, sewer collection utilities, libraries, parks and recreation, planning and zoning, code enforcement, public health, affordable ho using, 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 identified. At any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by a motion adopted by th e affirmative vote of at least five-members of the City Council. The accounts of the City are ma intained by line-item, detail, or object of expenditure. The legal level of budgetary control (the level at which management may no t reassign resources or overspend appropriations) is at the departmental level within each fund. Revenues are estimated annually and monitored on an ongoing basis to ensure there are adequate resources to cover expenditures.

CITY OF PASADENA LETTER OF TRANSMITTAL
Annual Comprehensive Financial Report | June 30, 2022 ix

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. It is important to consider various and volatile shifts in the glob al economy, exacerbated by the ripple effects of the CO VID-19 pandemic still being felt throughout FY 2022 and beyond.

THE CURRENT ECONOMIC CLIMATE
The national and global economies are facing inflationary pressures not seen for several decades, caused by a variety of factors, including ongoing supply chain shortages, and the war in Ukraine. Upward price pressures on energy, raw materials, and finished good s translate to inflation and an increase to the Consumer Price Index (CPI) across all sectors of the economy. The year-over-year CPI rose 9.1% in June of 2022.

In an effort to control inflation, as predicted, the Federal Reserve triggered several rate hikes in calendar year 2022, increasing the Federal Funds Rate from 0.25% to 4.50%. While rising interest rates will positively affect our investment income long-term, it will also deter future business expansion due to the cost of financing.

General Fund revenues have shown stability in FY 2022, as property tax, sales tax, utility users’ tax, and transient occupancy tax continue to show resilience and recovery.

The City of Pasadena received $52.2 million in direct support through the American Rescue Plan Act (ARPA). The City adopted to use the $26.3 million in FY 2022, of which approximately $12.8 million was recognized as revenue.

Looking Forward
The travel and tourism industry has shown significant improvement from a year ago; however, a full recovery to 2019 levels is not expected until 2024. International travel, especially related to business, is still down significantly and a recovery in the sectors will provide additional benefit to Pasadena’s economy. Locally, while business closures, including many restaurants, may take years to recover, new business openings and activity in the City’s various business districts have improved from a year ago.

Fortunately, the City benefited from the upside of the recovery. Sales tax categories, such as automobile sales and online purchases, have continued to be robust, property tax has remained stable, and development activity for new residential and commercial space contin ues. Additionally, both the RBOC a nd PCOC have strong event calendars booked for the upcoming year.

The City’s General Fund funded $9.3 million of the $11.8 million annual debt service obligation associated with the Rose Bowl, with the RBOC making up the $2.5 million balance.

LETTER OF TRANSMITTAL CITY OF PASADENA
x Annual Comprehensive Financial Report | June 30, 2022 General Fund Five-Year Forecast
It was anticipated that the RBOC would need ongoing financial assistance to co ver a portion of their debt service.

Fortunately, due to better-than-expected actuals in both FY 2021 and 2022, the receipt of a $10 million Shuttered Venue grant, and a slightly better future forecast, the RBOC does not require an annual contribution in FY 2023.

Additionally, the expected assistance in future years has also decreased and is reflected in the General Fund Five- Year Forecast.

FISCAL YEAR 2022 ACCOMPLISHMENTS
While it is critically important that th e City maintain strong fiscal health and address its multiple infrastructure- related issues, it must also take time to acknowledge positive improvements. Examples of FY 2022 accomplishments include:
• Adoption of a balanced budget for the tenth consecutive year, consistent with the City Co uncil’s goal to maintain
fiscal responsibility and stability;
• Received $25.6 million in local sales tax revenue
from Measure I and provided $8.5 million (Measure J) to the Pasa
dena Unified School District to protect and strengthen public schools; • Completed
Redistricting Process and adopted recommended Redistricting Plan; • To minimize th
e impact of COVID-19 on City revenues, continued to work in conjunction with Federal, State, and other local agencies and businesses to support people in need, meet medical requirements, maintain public health and safety, and implement strategies to curtail the spread of Coronavirus/COVID- 19 in the communit
y;

CITY OF PASADENA LETTER OF TRANSMITTAL

Annual Comprehensive Financial Report | June 30, 2022 xi • Managed the development, approval, and/or implementation of City Council policy initiatives and directives such as affordable housing, acce ssory dwelling units, violence prev ention programs, cannabis business regulations, and the Caltrans 710 stub relinquishment;
• Provided support for the PEDAL team (Pasadena El derly and Dependent Adult Liaison Team) with the mission to improve the quality of life for elders and de pendent adults residing in long-term care facilities through education, community outreach, code enforcement, and prosecution; • Assisted with administration of the State of Ca lifornia Great Plates Program and coordinated the participation of 22 Pasadena restaurants in the program; • Maintained a current General Obligation Bond rating of AAA, the highest rating given by Standard and Poor’s and AA+ by Fitch rating agencies;
• Successfully refunded the Water Fund’s 2011A Revenue Bonds, providing a net present value savings to the Water Fund of approximately $1.9 million;
• Maintained ISO Class 1 Public Protection Certification rating, the highest rating given nationally; • Completed the outfitting of Power Load systems for all front line and reserve ambulances. These mechanical ambulance gurneys and lifting systems help reduce the risk of injury to employees; • A total of 244 affordable units were permitted, under construction, or completed; • Updated and enhanced the Public Health COVID-19 dashboard with vital statistics; • Opened six-library branches for in-p erson service in May and two-branch es solely dedicated to curbside service. By late summer, curbside service concluded, and the nine-library branches were fully open providing in-person service to the public;
• Since the inception of the Pasadena First Buy Local Program, over 480 construction related jobs have been filled by Pasadena residents. This re sulted in over $2.2 million in wa ges earned on private development projects, which comprised approximately 26 percent of the total payroll of private projects subject to the Local Hiring ordinance. Additionally, over $3.6 million in wages have been earned on public projects and a total of over $18 million in subcontracting and procurement has gone to Pasadena businesses; • In response to food insecurity issues for Pasadena residents caused by the pandemic, the City acted to:
o Provide up to $1.2 million of Community Development Block Grant funding to local non-profit food pantries to address food insecurity in Pasadena,
o Responded to a need for prepared meals by d istributing 75-125 meals weekly at the Wednesday Hot Meals Program at the Jackie Robinson Community Center, • Performed over 21,000 building inspections for commercial and residential construction; • Issued over 8,100 construction related building permits; • Investigated more than 16,900 conf irmed COVID-19 cases, over 730 pr obable COVID-19 cases, more than 400 outbreaks, and over 500 different worksites;
• Distributed over 11,500 COVID-19 antigen tests to long-term care facilities, schools, childcare centers, and community agencies;

LETTER OF TRANSMITTAL CITY OF PASADENA
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ank)

CITY OF PASADENA LETTER OF TRANSMITTAL
Annual Comprehensive Financial Report | June 30, 2022 xiii • The Citizen Service Center answered over 46,000 ca lls, of which 50 percent were answered within 30 seconds
;
• Resurfaced approximately ten miles of local streets and repaired over 47,000 square feet of sidewalks; • Awarded Tree City USA designee and Tree City Growth award for the 32nd and 22nd year respectively; • Completion of Gas Turbine (“GT”)-2 refurbishment, which restored approximately 22 megawatts of local generation to i
mprove system reliability, which has been out of service since 2012 due to a power turbine blade f
ailure. The project included control system retrofits for both units GT-1 and GT-2; • Ensured City employee workplace safety, continued provision of exemplary municipal services to which the public is accustomed, supported local businesses wi th
a moratorium on commercial and residential
evictions, and maintained conversion of sidewalks and streets to support outdoor dining in accordance with health orders; and
• The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Pasadena for its Annual Comprehensive Finan
cial Report for the fiscal year ended June 30, 2021. This was the 23 rd consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government
must publish an easily readable and efficiently organized Annua l Comprehensive Financ ial Report.

This report must satisfy both generally accepted accounting principles and applicable le gal requirements.

A Certificate of Achievement is valid fo r a period of one-year. The City believes that its current Annual Comprehensive Financial Report continues to meet the Certificate of Achievem ent Program’s requirements and we are subm
itting it to the GFOA to determine its eligibility for another certificate.

The 26 a
ccomplishments listed above are just a sample of the hundreds of FY 2022 accomplishments, which are listed by department in the FY 2023 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 faced since the beginning of the pandemic with no reduction in the quality of services provided to the community. The FY 2022 Annual Comp rehensive Financial Report illustrates the City’s mission to deliver exemplary municipal service and responsiveness to the community, consistent with its history, culture, and unique character.

Respectfully submitted,
________________________
Matthew E. Hawkesworth
Director of Finance

CITY OF PASADENA
City Officials

CITY COUNCIL
Mayor Victor M. Gordo
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
City Manager (Interim) Cynthia J. Kurtz
City Attorney Michele Beal Bagneris
City Clerk Mark Jomsky

EXECUTIVE LEADERSHIP TEAM
Assistant City Manager Nicholas Rodriguez
Assistant City Manager (Acting) David Reyes
Director of Finance Matthew E. Hawkesworth
Director of Housing William K. Huang
Director of Human Resources
and Career Services (Acting) Tiffany Jacobs-Quinn
Director of Parks, Recreation &
Community Services Brenda Harvey-Williams
Director of Libraries & Information
Services (Acting) Tim McDonald
Chief Information Officer Phillip Leclair
Director of Planning and Community
Development (Acting) Jennifer Paige
Chief of Police (Interim) Jason Clawson
Director of Public Health Ying Ying Goh
Director of Public Works Tony Olmos
Director of Transportation Laura Cornejo
General Manager of Water and Power (Acting) Jeffrey Kightlinger 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
xxvi

CITY OF PASADENA
Organization Chart
June 30, 2022
Transportation

LAURA CORNEJO
Water & Power

JEFFREY KIGHTLINGER
Police

JASON CLAWSON
(Interim)
Housing
WILLIAM K. HUANG
Human Resources

TIFFANY JACOBS-
QUINN
(Acting)
Parks, Recreation &
Community Services
BRENDA HARVEY‐

WILLIAMS
Public Health

YING YING GOH
Fire

CHAD AUGUSTIN
Public Works

TONY OLMOS
Finance
MATTHEW E.

HAWKESWORTH
City Attorney/
City Prosecutor

MICHELE BEAL

BAGNERIS
Rose Bowl
Operating Company

DARRYL DUNN
Assistant
City Manager

DAVID REYES
(Acting)
Pasadena Center
Operating Company

MICHAEL ROSS
Pasadena Community
Access Corporation

GEORGE FALARDEAU
Assistant
City Manager
Information
Technology

PHILLIP LECLAIR
City Clerk

MARK JOMSKY
Citizens
of Pasadena
Mayor &
City Council
City Manager
CYNTHIA J. KURTZ
(Interim)
Planning & Community
Development

JENNIFER PAIGE
(Acting)
Libraries &
Information Services
TIM McDONALD
(Acting)
NICHOLAS G.

RODRIGUEZ
(Acting)

CITY OF PASADENA
Annual Comprehensive Financial Report
Year Ended June 30, 2022
The Government Finance Officers
Association o f the U
nited States and
Canada (GFOA) aw
arded a Certificate
of Achievement for the Excellence in
Financial Repor
ting to the City o f
Pasadena for our Annual Comprehensive
Financial Report for the fiscal year
ended June 30, 2021.

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 account
ing principles and
applicable legal requirements.

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

We believe our current Annual
Comprehensive Financial Report
continues t
o meet the Certificate o f
Achieve
ment Program requirements,
and we are submitting it to GF OA to
deter
mine its eligibility for another
certificate.
xvi Annual Comprehensive Financial Report | June 30, 2022 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, 2021
Executive Director/CEO

FINANCIAL SECTION
ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022
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INDEPENDENT AUDITORS’ REPORT
To the Honorable City Council
of the City of Pasadena
Pasadena, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business- type activities, the aggregate discretely presented component 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, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, based on our audit and 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 activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Pasadena, California, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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 represent 16.48 percent, 24.11 percent, and 4.3 percent, respectively, of the assets, fund balance/net position, and revenues/additions of the aggregate remaining fund information opinion unit. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Pasadena Fire and Police Retirement System, a Fiduciary Pension Trust Fund of the City of Pasadena is based solely on the report of the other auditors.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
1 City Council
City of Pasadena, California
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial stat ements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosure s in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those cha rged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
2 City Council
City of Pasadena, California
Required Supplementary Information
Accounting principles generally accepted
in the United States of America require that the
Management’s Discussion and Analysis, the Budgetar y Comparison Schedules - General and Major Special Revenue Funds, the schedules of changes in net pension liability and 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 relat ed ratios, the schedule of OPEB plan contributions, and the schedule of OPEB plan investment returns, identified as Required Supplementary Information (RSI) in the accompanying table of contents be presented to supplement the basic financial statements.

Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic 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.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The individual fund schedules and combining financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such 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. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional proc edures, 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 GAAS. In our opinion, the individual fund schedules and combining financial statements funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 3 City Council
City of Pasadena, California
Other Reporting Required by Gove rnment Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 17, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant 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 compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Pasadena, California’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
March 17, 2023
4 CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS Annual Comprehensive Financial Report | June 30, 2022 5 MANAGEMENT’S DISCUSSION AND ANALYSIS
As management
of the City of Pasadena (City), we offer this na rrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022 (FY 2022). We en courage 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- xiii of this report.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: (1) government-wide fi nancial 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’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 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 include general government, public safety, transportation, utility, sanitation, health, culture and leisure, and community development. The business-type activities of the City 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, 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 bala nces 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, 2022 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 maintains 30 individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds stat ement of revenues, expenditures, and chan ges 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 26 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 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 maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financia l 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 in ternally among the City’s various functions. The City uses internal service funds to account for its computing and communication, build ing 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 business-type functions, they have been included 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. Conversely, each of the internal service funds are combined into a single, aggregated presen tation 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, aggregated pr esentation. 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’s own programs. The activities of the 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 fiduci
ary 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, 2022 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 43-119 of this report.

Other Information
In addition to the basic financial statements and accompanying notes, this report 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 122-139 of this report.

The combining statements referred to earlier in connection with non-major governmental funds and internal service funds presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 142-219 of this report.

FINANCIAL HIGHLIGHTS
New Significant Accounting Standards Implemented
In FY 2022, the City adopted one new statement of financial accounting standards issued by the Government Accounting Standards Board (GASB), Statement No. 87, Leases (GASB 87).

GASB 87 requires long-term leases recorded on the financial statements. The objective of this statement is to better meet information needs of financial statement users by improving accounting and financial reporting for leases by governments and other public agencies subject to GASB. It establishes a single model for lease accounting based on the foundational
principle that leases are financings of the right-to-use an underlying asset. Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivabl e and a deferred inflow of resources, ther eby enhancing the relevance and consistency of information about public agency lease activities.

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA

8 Annual Comprehensive Financial Report | June 30, 2022

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, assets and deferred outflows exce eded liabilities and deferred inflows by $1, 028.7 million at the close of the most recent fiscal year.

$971.5 million of the City’s net position reflect its investment in capital assets (e.g., la nd, buildings, machinery, and equipment), less any related outstanding debts used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Alth ough the City’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 the capital assets themselves cannot be used to liquidate these liabilities.

City of Pasadena’s Net Position (in millions)

The restricted portion of the City’s net position, $191.0 million or 18.6% of the total net position represents resources subject to externally imposed limitations for specific purposes. The remaining balance is a deficit in unrestricted net position of, $133.7 million, or 13.0% of the total net position is for unrestricted uses in accordance with finance-related legal requirements. This deficit reflects liabilities and deferred inflows that exceed assets and deferred outflows, with a significant portion of the deficit attributable to the implementation of GASB 68, Accounting and Financial Reporting for Pensions, i.e., $83.2 million, and GASB 75, Other Postretirement Employment Benefits (OPEB), i.e., $16.0 million, upon the recognition of actuarial estimated future costs related to pension retirement and post-employment medical benefits.

During FY 2022, the primary government’s net position increased by $14.7 million, where approximately $10.5 million relates to the decrease in governmental activities, and $25.2 million to the increase in the City’s business-type activities. The decrease in the governmental activities reflects increases in spending, in comparison to a smaller increase in revenues. The increase in business-type activities is the continuance of strong trend in revenues in addition to this year’s modest decrease in expenses.

Governmental Activities Business-type Activities Total Primary Government 2022 2021 2022 2021 2022 2021 $ Change % Change
Other a s s ets 372.6$ 368.9$ 602.1$ 491.5$ 974.7$ 860.4$ (114.3)$ -13.3% Capi tal a s s ets 519.5 516.0 716.4 809.3 1,235.9 1,325.3 89.4 6.7% Total Assets 892.1 884.9 1,318.5 1,300.8 2,210.6 2,185.7 (24.9) -1.1% Deferred Outflows 96.9 109.5 14.8 17.7 111.8 127.2 15.4 12.1% Long-term debt outstanding 289.0 294.7 305.0 310.3 593.9 605.0 11.0 1.8% Net pension liability 25 2. 0 422.1 50.3 91.3 302.3 513.4 211.1 41.1% Other liabilities 14 1. 6 97.8 61.3 60.4 202.9 158.2 (44.7) -28.3% Total Liabilities 682.6 814.6 416.6 462.0 1,099.1 1,276.6 177.4 13.9% Deferred Inflows 156.9 19.8 37.5 2.4 194.5 22.2 (172.3) -776.1% Net Position:

Inv ested in c apital assets,
net of debt 471.8 468.0 499.7 486.9 971.5 954.9 (16.5) -1.7% Restricted 81.5 82.1 109.5 126.7 191.0 208.8 17.8 8.5% Unres tri cted (403.7) (390.1) 270.0 240.5 (133.7) (149.7) (16.0) 10.7% Total Net Position 149.6$ 160.0 $ 879.2 $ 854.1 $ 1,028.8$ 1,014.0 $ (14.7)$ -1.4% CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2022 9 City of Pasadena’s Changes in Net Position (in millions)

Governmental Activities

Governmental activities net position decreased by $10.4 million or 6.5%. Key elements of this decrease are a combination of factors as follows:

The revenue components of governmental activities increased by $44.5 million or 12.5% from prior year revenues. The following categories illustrates the changes: charges for services increased by $1.8 million, operating grants and contributions increased by $19.9 million, property taxes increased by $2.5 million, sales taxes increased by $12.1 million, utility users’ tax increased by $3.1 million, other taxes incr eased by $19.1 million and misc ellaneous revenues by $1.6 million. Capital grants and contributions increased by $0.8 million and other revenues decreased by $16.4 million.

• Charges for services increase of $1.8 million include changes in the following categories:
o $3.4 million increase in public safety due to police outside event revenues related to increased business activities resuming from the pandemic and increased emergency medical services. o $2.7 million increase in community development;
o The increase is offset by the $4.2 million decr ease in transportation, $0.5 million in general government, and $0.4 million in culture and leisure activities.

• Operating grants and contributions increased by $20.0 million, primarily due to the recognition of approximately $12.7 million in ARPA revenue during the current fiscal year.

• Property taxes increased by $2.5 million due to appreciation of property value in Pasadena.

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA
10 Annual Comprehensive Financial Report | June 30, 2022 • Sales taxes increased by $12.1 million. Regular sales tax increased by $6.4 million and Measure I sales tax increased by $5.5 million due to increased spending activity within city jurisdiction during the current fiscal year. • Other taxes increased by $19.1 million mainly due to the following categories:
o $8.4 million increase in transi
ent occupancy taxes, as the hospitality industry rebounded when shelter- in-place orders were lifted;
o $10.6 million i
ncrease in other taxes such as a $2.0 million increase in the underground utility surtax and $6.4 million for streetlight and traffic signal taxes, previously presented under charges for services. • Other revenues decreased by $16.4 million due, primarily due to unfavorable invest ment performance during the
current fiscal year. The breakdown is as follows:
o $14.1 million
decrease in net change in investment fair value; and
o $2.3 million decrease in i
ntergovernmental revenues.
• Miscellaneous
revenue increased by $1.6 million, where $1.5 million relates to having a Rose Pa rade and Tournament
of Roses for New Year’s Day 2022, when this event had been cancelled in 2021 due to the pandemic.

The expense components of governmental activities increased by $19.5 million or 4.8%. The changes in expenses were general government increased by $13.2 m illion, public safety increased by $2.7 million, transpor tation decreased by $6.0 million, and community development increased by $5.3 million. The other categories have a net increase of $4.3 million. • General government expenses increased by $13.2 million or 18.1%. There was a $12.4 million increase in general liability insurance and a $5.6 million increase in the City ’s GASB 68 pension expenses. There was a $0.4 million decrease i
n the City’s GASB 75 OP EB expenses, $1.6 million decrease in benefit expens es, and $2.2 million decrease in non-capitalized infrastructure improvement expenditures. • Other expenses decreased by $1.2 m illion, including $0.5 million decr ease in utility expenses, $1.3 million
decrease in sanitation expe nses, and $0.4 million decrease in health expenses. In sanitation expenses, capital outlay
decreased by $1.7 million and general operatin g increased by $0.5 million, and internal service fund allocation incr
eased by $0.2 million.
• Public safety expenses increased by $2.7 million or 1.8% mainly due to increased police and fire personnel costs. • Community development expenses increased by $5.3 millio n or 9.2% mainly due to increased loans to other entities for affordable housing for $9.7 million. There was an increase in emergenc y shelter services by $1.0 million, decrease in capital investment by $1.8 million, GASB 68 expense by $2.5 million, and other operating cost decreased by $1.1 million.
• Transportation expenses
decreased by $6 million or 12.3%. There was a $4.2 million increase in general liability insurance. There was a $3.3
million decrease in the City’s GASB 68 pension expense $0.9 million decrease in the City’s GASB
75 OPEB expenses, $0.5 million decrease in benefit expe nses and a $6.3 million decrease in non- capitalized infrastructure improvement expenditures.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2022 11 Governmental Activities (Continued)

$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, 2022 Business-type Activities

Business-type activities increased the City’s net position by $25.2 million. Key elements of this year’s increase are as follows:

• Net income of the Light and Power, Water, Off-Street Parking, and Non-Major Enterprise Funds were $10.8 million, $7.3 million, $1.4 million, and $5.7 million, respectively.

• Electric charges for services increased $4.2 million or 1.9% from the prior fiscal year. Majority of the increase was due to an increase in cap & trade retail revenue.

• Electric expenses increased by $0.50 million or 0.2% from the prior year. The increase in Fuel expense was offset by a decrease in administrative and general expenses.

• Water charges for services decreased by $1.9 million or 2.7% over the prior year mainly due to a decrease in water sales and lease to other agencies.

• Water expenses decreased by $2.4 million or 3.8% from the prior year mostly due to decrease in administrative and transmission and distributions costs.

• Off-Street Parking operating revenues increased by $3.2 million or 40.1%, and expe nses decreased $1.0 million or

8.5% mostly due to administering parking enforcement post suspension of enforcement due to the pandemic.

• Off-Street Parking net gain of $1.4 millio n was primarily the result of recoveri es. As the public resumed activities, the city experienced increased parkin g activity as well as increased revenues in previously suspended parking 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

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2022 13 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

City of Pasadena’s Governmental Funds
Summary Statement of Revenues, Expenditures and
Changes in Fund Balances (in millions)

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA

14 Annual Comprehensive Financial Report | June 30, 2022 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 assessin g the City financing requirements. 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% of the General Fund annual appropriations. The 20% is comprised of 15% General Fund Emergency Contingency and 5% General Fund Operating Reserve.

On September 12, 2022, the City Council committed the full 15% or $43,003,950 for the FY 2022 Emergency Contingency Reserve and up to 5% or $14,334,650 for Operating Reserve.

At the end of FY 2022, the City’s governmental funds reported combined ending fund balances of $268.2 million, a decrease of $7.9 million in comparison with the prior year. The nonspendable fund balance of $15.3 million represents assets generated by prepayments, permanent trust fund balances and receivables in funds, net of allowances. The restricted fund balance of $76.9 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 $159.6 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 $25.9 million designates the portion of fund balance that reflects the City’s intended use of resources. The unassigned fund balance of ($9.5) million represents the deficit amount of th at nonspendable, restricted, committed, and assigned in excess of total fund balance.

The General Fund is the chief op erating fund of the City. At the end of FY 2022, total fund balance equaled $106.2 million, versus $99.1 million in the prior year. The fund balance increased by $7.1 million or 7.2%, during FY 2022. Key factors for this change are as follows:

Total revenues increased by $38.7 million due to increases in three categories of revenue and decrease in two categories, as explained below:

Taxes increased by net $33.5 million primarily due to an increase of $2.6 in property taxes. Sales tax increases by $11.9 million, utility user’s tax increased by $3.2 million and transient occupancy tax revenue in creased by $8.4 million.

St Light & Traffic
Signal Tax of $6.4 million was reclassified from Charges for service to Tax. The other taxes had a net increase of $1.0 million.

Intergovernmental revenues increased by $11.4 million, primarily due to $12.4 million received in American Rescue Plan Act funding and an increase of $0.8 million in motor vehicle in-lieu tax. No more CARES Act grant of $1.8 million.

Miscellaneous revenues increased by $1.8 million primarily due to Filming Revenue incr ease of $0.3 million, Tournament of Roses revenue increase of $1.1 million and increase of other revenues such as claim settlements and collection of interest.

Charges for service decreased by $2.8 million, primarily due to a reclassification of St Light & Traffic Signal Tax of $6.4 million and increase of $1.5 million in EMS Cost Recovery, increase of Billable Police service of $1.9 million.

The decrease was due to loss of investment earnings down by $6.5 million.

Total expenditures increased by $25.9 million or 6.7%. These ex penditure categories increased: public safety $8.7 million, culture and leisure $4.4 million, community development $7.7 million and capital outlay $13.3 million. These expenditure categories decreased: general government $2 million and transportation $6.3 million. Th e other categories have a net decrease of $1.4 million. In addition, due to the implementati on of GASB 87, lease financin g will be presen ted under debt service. Prior to 2022 these expenditures were presented within the governmental funds’ function.

• General government expenditures decreased by $2 million mainly due to a $2.2 million decrease in non-capitalized infrastructure improvement expenditures net of an increa se of $0.2 million in overall non-improvement related costs.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2022 15 • Public safety expenditures increased by $10.5 million due to several factors. Expenses related to other contract services, such as additional law enforcement services, supplemental traffic control services for the New Year’s parade in 2022 in comparison to 2021, as the parade was not held in 2021. An overall increase in personnel, services and supplies costs contributed to the overall increase. For fiscal year 2022, the city recogn ized $2.6 million in additional capital outlay expenditures due to the fist-year implementation of GASB 87.

• Transportation expenditures decreased by $6.3 million ma inly due to a decrease of $6.7 in non-capitalized infrastructure improvement expenditures net of an increa se of $0.3 million in overall non-improvement related costs.

• Culture and leisure expense increased by $5.2 million mainly due to the rebound of the hospitality industry in the current fiscal year, thereby the increase in the transient occupancy taxes during FY 2022 and the portion allocation to the Pasadena Center Operating Company.

In FY 2022, the net General Fund transfer-out increased by $7.1 million due to the following one-time transfers made in the current year: (1) $3.4 million to the Project Management Fund, (2) $18.9 million to the Non-major Governmental Funds, and (3) $7.1 million to the General Debt Service Fund. There was also an $18.0 million transfer-in from the Light & Power Fund to the General Fund

The Housing Successor Fund has a fund ba lance of $1.9 million, which is a decrease of $5.0 million from the prior year. The key factors contributing to this decrease are as follows:
• Total revenue increased to $0.3 million, mainly from loan repayments. • Total expenditures increased to $5.3 million, primarily due to the Bridge Housing affordable housing project.

Proprietary Funds

The City’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 $214.3 million and those for the Water, Off-Street Parking Fund, and Non-Major Enterprise Fu nds amounted to $38.9 million, $2.8 million, and $14 million respectively. The total net income/(loss) for each fund was $10.8 million, $7 .3 million, $1.4 millio n, and $5.7 million respectively.

Light and Power operating revenues increased by $4.2 million from prior year. Total retail electric energy sold increased by 28,324 megawatt hours, a 3.0% increase compared to the prior fiscal year. Total operating expenses increased by $1.3 million to $189 million.

Water Fund operating revenues decreased $1.9 million from prior year primarily due to reduction in usage, reduction in sales of water rights and leases to other agencies. Total retail wate r sales decreased by $0.5 million or 3.8% billing units in retail water sales. Operating expenses decreased by $2.3 million or 3.7% primarily due to $1.7 million decrease in transmission and distribution expenses and $0.5 million decrease in production expenses.

The Off-Street Parking Fund had a net gain of $1.4 million in FY 2022, as compared to $2.7 million net loss in FY 2021. Primarily due to the increase of parking revenues from all parking structures and resuming parking enforcement and citations.

Implementation of GASB 68 has resulted in showing a Net Pension Liability in the Proprietary Funds. At June 30, 2022, the
Net Pension Liability is $34.6 million, $11.0 million, $0.5 million, and $4.2 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, 2022, the Net OPEB Liability is $8.3 million, $4.1 million, $0.07 million, and $2.1 million for Light and Power, Water, Off-Street Parking, and Non-Major Enterprise funds, respectively.

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA
16 Annual Comprehensive Financial Report | June 30, 2022

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, 2022 amounts to $1,331 million, net of accumulated depreciation/amort ization. This investment in capital assets includes land, buildings, improvements, equipment, infrastructure, construction-in-progress, and intangible assets. Infrastructure assets are items that are normally immovable such as roads, bridges, drainage systems, and other similar assets. The net increase in the City of Pasadena’s investment in capi tal assets for the current fiscal year was $18 million, a $4.6 million increase for governmental activities and $13.4 million increase for business-type activities. There is a restatement for the beginning balance of capital asset due to the retrospective application required for prior years under GASB 87 by restating financial statements for all periods presented.

City of Pasadena’s Capital Assets
(Net of Depreciation/Amortization, in millions)
Major capital asset-related events during FY 2022 included the following:
• A variety of street maintenance and construction, technology, traffic control, parks and landscape projects continue city-wide. The city spent $37 million on capital projects in governmental activities. Costs for projects not yet completed are shown as
construction-in-progress (CIP). Gove rnmental activities CIP as of June 30, 2022 is $31. 4 million and
$82 million for business-type activities.
• In the area of technology upgrade pr
ojects, the city spent $3.2 m illion towards new and replacement computer equipment. Of this amount, $1,914 million is for computer-aided dispatch records management system, $0.4 million toward land management sys
tem, $0.8 million for fleet a sset management system web software upgrade, and $0.1 million for safety aviation radio system.
• Public
Works acquired a severe-duty truck and four Ford trucks for refuse serv ices for $0.5 million. Fire spent $0.7 million on two ambulance trucks EMS.
• Housing invested $0.6 million for two
condos for affordable housing.
• Improvement
of city-owned facilities continues. Nearly $3.1 million was spent in city buildings for preventive maintenance and
repair, $4 million in parks and landscape projects, and $0.7 million for street improvements. • Major
capital improvements for Transp ortation includes: $3.9 m illion to Intelligent Transp ortation Systems which utilize technol
ogy to improve transportation safety, capacity, travel times, service quality; and $0.9 million for traffic safety and control program improvements.
• As of June 30,
2022, the business-type activities net assets amounted to $813 million, an incr ease of $13.4 million over
the prior year.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2022 17 • Pasadena Water and Power (PWP) utility plant net assets amounted to $766 million, an increase of $15 million. During the fiscal year, the City spent $82 million on various water and power proj ects and moved $5 7.3 million into completed projects.

• PWP partnered with Red Clay Consulting and spent $23.8 million to implement Oracle Field Service, a cloud-base field service management solution, Oracle Utilities Customer to Meter(C2M) and Oracle Fiel d Service (OFS) with bill printing, bill payment and a customer po rtal. The new C2M and OFS system is helping PWP understand at a glance what is happening in the field at any time. It enables PWP’s field workers to instantly communicate and collaborate, connecting them seamlessly to assets and back-office logistics.

• Some of the major water projects are: $1.3 million on installing water iron pipe in Altadena Drive from Woodlyn Road to Paloma Street and $1.0 million on small water meter upgrades.

• Some of the major power projects are: $1.4 million on Over head electric services and $0.8 million on developing a master plan for the Power Delivery System.

Additional information on the City’s capital assets can be found in Note 7 on pages 64-67 of this report.

Long-Term Liabilities

At year-end, the City has a number of debt issues outstanding. These include $132.8 million of taxable pension bonds, $301.3 million of revenue bonds, $50.9 million of certificates of pa rticipation and $4.6 m illion of notes payable. Long-term debt decreased by a net amount of $9.9 million as a result of normal scheduled principal maturities and refunding of debt. Other liabilities decreased by a net amount of $194.9 million primarily due to an increase of $34.2 in insurance claims payable offset by a decrease of $211.1 million in net pension liability and a decrease of $21.2 million in net OPEB liability. 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)

Governmental Activities Business-type Activities Total Primary Government 2022 2021 2022 2011 2022 2021
Long-term debt:

Notes payable 4.6$ 5.0$ - $ -$ 4.6$ 5.0$ Bonds payable 132.8 134.9 301.3 306.5 434.1 441.3 Certificates of participation 50.9 53.2 - - 50.9 53.2 Loan payable 4.9 5.9 1.9 2.4 6.9 8.3 Total long-term debt 193.3 198.9 303.2 308.8 496.5 507.8 Other:

Net pension liability 252.0 422.1 50.3 91.3 302.3 513.4 Net OPEB liability 57.9 74.2 14.5 19.4 72.4 93.6 Compensated absences 12.2 13.0 - - 12.2 13.0 Insurance claims payable 76.2 42.0 - - 76.2 42.0 Lease liability 4.0 - 1.4 - 5.4 - Total other liabilities 402.3 551.4 66.2 110.6 468.5 662.0 Total long-term liabilities 595.6 $ 750.3 $ 369.4 $ 419.5 $ 965.0 $ 1,169.8 $

Additional information on the City’s long-term debt can be found in Note 10 on pages 73-85 of this report. Information on self-insurance claims payable can be foun d in Note 18 on pages 99-100, net pensio n liability in Note 20 on pages 101-112, and OPEB can be found in Note 21 on pages 113-117.

The City reports two items of significant economic importance in its subsequent event Note 23 on page 119.

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA

18 Annual Comprehensive Financial Report | June 30, 2022

REQUEST FOR INFORMATION

This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the info rmation 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.
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FINANCIAL SECTION CITY OF PASADENA 20 Annual Comprehensive Financial Report | June 30, 2022 Statement of Net Position
June 30, 2022

Total Aggregate
Governmental Business-type Primary Component
Activities Activities Government Units Total
Assets:

Current assets:

Cash and investments 279,829,214$ 341,333,365 $ 621,162,579 $ 47,045,282 $ 668,207,861 $ Accounts recei va bl e
, net 53,469,007 44,045,855 97,514,862 6,905,188 104,420,050 Notes receivable , net 13,505,395 1,366,250 14,871,645 - 14,871,645 Internal balances (1,573,031) 1,573,031 - - - Inventories 508,207 27,135,879 27,644,086 122,897 27,766,983 Lease receivable 717,748 413,890 1,131,638 7,495 1,139,133 Prepa i ds a nd other a s s ets 1,907,250 2,092,963 4,000,213 487,177 4,487,390 Due from com ponent units 1,524,852 9,000 1,533,852 - 1,533,852 Due from City - - - 2,095,167 2,095,167 Due from other governments 60,981 - 60,981 - 60,981 Pro perty hel d for res a l e 560,996 - 560,996 - 560,996 Total current assets 350,510,619 417,970,233 768,480,852 56,663,206 825,144,058 Noncurrent restricted assets:

Rest r ic t ed asset s - c ash and inv est ment s 22,131,375 78,155,837 100,287,212 20,407,211 120,694,423 Restricted assets - others - 74,167 74,167 - 74,167 Total noncurrent restricted assets 22,131,375 78,230,004 100,361,379 20,407,211 120,768,590 Other noncurrent assets:

Long-term prepaid and other assets - 8,328,192 8,328,192 438,830 8,767,022 Lease receivable - noncurrent 1,719,749 885,701 2,605,450 479,042 3,084,492 La nd 87,321,596 14,684,665 102,006,261 - 102,006,261 Construction in progres s 31,408,653 81,995,624 113,404,277 2,475,272 115,879,549 Other ca pit al asset s , net 399,078,107 716,397,467 1,115,475,574 274,829,904 1,390,305,478 Total other noncurrent assets 519,528,105 822,291,649 1,341,819,754 278,223,048 1,620,042,802 Total noncurrent assets 541,659,480 900,521,653 1,442,181,133 298,630,259 1,740,811,392 Total assets 892,170,099 1,318,491,886 2,210,661,985 355,293,465 2,565,955,450 Deferred outflow of resources
Accumulated decrease in fair value of
hedging derivatives - - - 10,763,362 10,763,362 Bond refunding related 21, 171,911 976,712 22,148,623 2,688,063 24,836,686 Pension related 66
,649,228 11 ,556,887 78 ,206,115 888 ,259 79 ,094,374 OPEB related 9 ,122,615 2 ,287,079 11 ,409,694 - 11 ,409,694 Total deferred outflow of resources 96,943,754 14,820,678 111,764,432 14,339,684 126,104,116 Liabilities:

Current liabilities
Accounts
payable and ac c r ued liabilities 38,121,752 28,855,124 66,976,876 11,475,996 78,452,872 De posits 5,552,498 6,169,882 11,722,380 1,776,671 13,499,051 Due to com ponent units 2,143 1,095 3,238 - 3,238 Due to pri ma ry gov ernment - - - 1,532,654 1,532,654 Lon g-term adv ances - - - 100,000 100,000 Unearned revenue 43,351,060 12,134,497 55,485,557 4,298,319 59,783,876 Com pensated absences due within one year 11,355,797 - 11,355,797 30,259 11,386,056 Insurance claims payable within one year 34,307,683 - 34,307,683 - 34,307,683 Lon g-term obli gations due within one year 5,821,831 11,314,017 17,135,848 10,696,101 27,831,949 L ease liabilit y due within one year 951,875 964,062 1,915,937 192,673 2,108,610 Total current liabilities 139,464,639 59,438,677 198,903,316 30,102,673 229,005,989 Noncurrent liabilities:

Der iv ativ e instr ument liabilit y - - - 10,763,362 10,763,362 Lon g-term adv ances from pri ma ry government - - - 500,000 500,000 Net pension liabilit y 252,049,067 50,274,603 302,323,670 1,390,048 303,713,718 Net OP EB liabilit y 57,913,379 14,519,130 72,432,509 - 72,432,509 Compensated absences due in more than one year 831,254 - 831,254 146,626 977,880 Insurance claims payable due in more than one yea r 41,844,950 - 41,844,950 - 41,844,950 Lon g-term obli gations due in more than one year 187,452,549 291,900,498 479,353,047 334,050,323 813,403,370 L ease liabilit y due in more than one year 3,072,008 412,421 3,484,429 28,403 3,512,832 Total noncurrent liabilities 543,163,207 357,106,652 900,269,859 346,878,762 1,247,148,621 Total liabilities 682,627,846 416,545,329 1,099,173,175 376,981,435 1,476,154,610 Primary Government

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

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 21 Statement of Net Position
June 30, 2022

Total Aggregate
Governmental Business-type Primary Component
Activities Activities Government Units Total
Primary Government

Deferred inflow of resources
De ri va ti ve i ns trume nts - - - 4,166,486 4,166,486 Bond refundin g rel a ted - 2,046,138 2,046,138 - 2,046,138 Serv ice concession a greement - - - 193,519 193,519 Lease related 2,383,085 1,287,812 3,670,897 702,061 4,372,958 P ension r elated 132,659,324 28,723,156 161,382,480 1,213,439 162,595,919 OPEB related 21,890,988 5,488,164 27,379,152 - 27,379,152 Total deferred inflow of resources 156,933,397 37,545,270 194,478,667 6,275,505 200,754,172 Net Position:

Net investment in ca pital assets 471,778,310 499,718,823 971,497,133 (13,486,937) 958,010,196 Restricted:

Nonexpendable 1,434,131 - 1,434,131 - 1,434,131 Ex pendable:

Communi ty develo pment 15,516,715 - 15,516,715 - 15,516,715 P ublic safet y 4,975,255 - 4,975,255 - 4,975,255 Capital projects 2,488,871 - 2,488,871 - 2,488,871 Debt service 7,084,563 36,484,028 43,568,591 11,663,709 55,232,300 Stranded investments - 43,780,340 43,780,340 - 43,780,340 Trans porta tion 33,718,365 - 33,718,365 - 33,718,365 Contribution to Genera l Fund - 19,544,138 19,544,138 - 19,544,138 C ultur e and lit er acy 3,021,242 - 3,021,242 - 3,021,242 Other purposes 994,715 9,665,198 10,659,913 870,240 11,530,153 Air qualit y im provement 159,964 - 159,964 - 159,964 Trust and loans 12,101,050 - 12,101,050 - 12,101,050 Unrestricted (403,720,571) 270,029,438 (133,691,133) (12,670,803) (146,361,936) Total net position 149,552,610$ 879,221,965 $ 1,028,774,575 $ (13,623,791) $ 1,015,150,784 $

FINANCIAL SECTION CITY OF PASADENA 22 Annual Comprehensive Financial Report | June 30, 2022 Statement of Activities
For the Fiscal Year Ended June 30, 2022

Operating Capital
Charges for Grants and Grants and
Functions/Programs Ex penses Services Contributions Contributions Primary government:

Governmental activities:

Genera l government 86,104,284 $ 12,983,685 $ 11,091,008 $ - $ Publi c s a fety 151,004,670 13,736,003 5,141,054 - Tra ns porta ti on 44,751,810 16,606,508 20,131,913 8,584,061 Uti l ity 124,195 - - - Sa nita ti on 6,091,235 7,301,252 - - Hea l th 17,061,844 2,167,887 9,588,112 - Culture a nd leis ure 48,528,681 1,095,671 5,102,059 1,600,000 Communi ty development 62,726,513 14,470,174 29,693,094 - Interes t a nd other fis ca l cha rges 6,364,229 - - - Total governmental activities 422,757,461 68,361,180 80,747,240 10,184,061 Business-type activities:

El ectric 196,717,783 226,509,255 4,007,119 4,026,308 Wa ter 61,517,911 69,359,266 1,919,178 532,373 Refus e 18,817,986 11,863,585 261,541 - Pa rki ng 10,900,735 11,065,878 - - Telecommuni ca ti ons 162,655 775,861 - - Total business-type activities 288,117,070 319,573,845 6,187,838 4,558,681 Total primary government 710,874,531 387,935,025 86,935,078 14,742,742 Aggregate Component Units 76,111,366$ 48,372,793 $ 31,560,902 $ 76,055 $ General revenues:

Taxes:

Property taxes, levied for general purpose
Sales taxes
Ut ility user s' t ax es
Transient occupancy taxes
Construction taxes
Business lic ense tax es
Franchise taxes
Other taxes
Other intergovernmental, unres tricted
M ot or v ehic le in-lieu, unr estr ic t ed
Use of money - investment earnings
Use of property - lease activ ity
Net c hange in fair v alue of inv estments
Gain (loss) on sale of c apit al assets
M isc ellaneous r ev enues
Total general revenues
Transfers
Total general revenues and transfers
Changes in net position
Net position - beginning of year
Net position - end of year
Pro
gram Revenues

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

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 23

Total A ggregate
Governmental Business-t ypeP r i m a r y Component
Activities Activities Government Units Total
(62,029,591)$ - $ (62,029,591)$ - $ (62,029,591)$ (132,127,613) - (132,127,613) - (132,127,613) 570,672 - 570,672 - 570,672 (124,195) - (124,195) - (124,195) 1,210,017 - 1,210,017 - 1,210,017 (5,305,845) - (5,305,845) - (5,305,845) (40,730,951) - (40,730,951) - (40,730,951) (18,563,245) - (18,563,245) - (18,563,245) (6,364,229) - (6,364,229) - (6,364,229) (263,464,980) - (263,464,980) - (263,464,980) - 37,824,899 37,824,899 - 37,824,899 - 10,292,906 10,292,906 - 10,292,906 - (6,692,860) (6,692,860) - (6,692,860) - 165,143 165,143 - 165,143 - 613,206 613,206 - 613,206 - 42,203,294 42,203,294 - 42,203,294 (263,464,980) 42,203,294 (221,261,686) - (221,261,686)$ 3,898,384 3,898,384
79,143,553 - 79,143,553 - 79,143,553 74,365,959 - 74,365,959 - 74,365,959 30,123,514 - 30,123,514 - 30,123,514 14,711,398 - 14,711,398 - 14,711,398 2,625,544 - 2,625,544 - 2,625,544 5,889,914 - 5,889,914 - 5,889,914 2,730,218 6,161,960 8,892,178 - 8,892,178 16,308,638 - 16,308,638 3,189,250 19,497,888 1,235,060 - 1,235,060 65,872 1,300,932 22,562,229 - 22,562,229 - 22,562,229 2,238,519 2,792,508 5,031,027 (6,483,996) (1,452,969) 731,368 394,643 1,126,011 1,126,011 (15,261,512) (25,439,219) (40,700,731) - (40,700,731) - (166,537) (166,537) - (166,537) 4,663,555 10,571,083 15,234,638 5,318,837 20,553,475 242,067,957 (5,685,562) 236,382,395 2,089,963 238,472,358 10,954,124 (11,362,386) (408,262) - (408,262) 253,022,081 (17,047,948) 235,974,133 2,089,963 238,064,096 (10,442,899) 25,155,346 14,712,447 5,988,347 20,700,794 159,995,509 854,066,619 1,014,062,128 (19,612,138) 994,449,990 149,552,610$ 879,221,965 $ 1,028,774,575 $ (13,623,791) $ 1,015,150,784 $ Net (Expenses) Revenues and
Changes in Net Position
Primary Government

FINANCIAL SECTION CITY OF PASADENA
24 Annual Comprehensive Financial Report | June 30, 2022 Balance Sheet
Governmental Funds
June 30, 2022
Non-Major
Project General Housin g Governmental
General Mana gement Debt Service Successor Funds Total
Assets:

P ooled c ash and inv est ment s 71,628,929$ 8,295,771$ - $ 2,712,441$ 155,375,824$ 238,012,965$ Accounts recei va bl e, net 33,972,308 958,689 - 6,374 1 8,222,006 53,159,377 Lease r eceiv able 6 2 8,297 - - - 9 76,340 1,604,637 Notes r eceiv able 18,350,000 - - 26 ,318,280 58,023,672 102,691,952 Allowance for unc ollec tible notes
recei va bl e (4,844,605) - - (26,318,280) (58,023,672) (89,186,557) Due from other funds 38,662,450 - - - - 38 ,662,450 Due from com ponent uni ts 1,503,287 - - - - 1,503,287 Due from other governments 60,981 - - - - 60,981 Prepaids and other assets 1 9 1,694 - - - 148,066 339,760 Restricted assets:

Cash and investments 11,696,726 - - - 10 ,430,296 22,127,022 Cash with fiscal a gent - - 813 - 3,540 4,353 Property hel d for res a l e - - - - 560,996 5 60,996 Total assets 171,850,067 9,254,460 813 2,718,815 185,717,068 369,541,223 Liabilities:

Accounts payable and acc r ued liabilities 17 ,895,173 4,936,612 - 825,988 4,919,285 28,577,058 De posits 3,990,568 - - - 1,561,930 5,552,498 Due to other funds - - - - 9,938,684 9,938,684 Due to com ponent units 2,143 - - - - 2,143 Unea rne d revenue 40,738,287 - - - 2,612,773 43,351,060 Advances from other funds 110,000 - - - - 110,000 Total liabilities 62,736,171 4,936,612 -
825,988 19,032,672 87,531,443
Deferred inflow of resources:

Unav ailable r ev enues 2,286,400 931,321 - - 9,067,520 12,285,241 Lea s e rel a ted 611,783 - - - 960,333 1,572,116 Total deferred inflow of resources 2,898,183 931,321 - - 10,027,853 13,857,357 Fund balances:

Nons pendable 13,697,089 - - - 1,582,197 15,279,286 Restricted 12,101,050 611,197 813 1,892,827 62,341,228 76,947,115 Committed 57,338,600 - - - 102 ,213,003 159,551,603 Assi gned 23,078,974 2,775,330 - - - 25 ,854,304 Unassi gned - - - - (9,479,885) (9,479,885) T
otal fund balances 106,215,713 3,386,527 813 1,892,827 156,656,543 268,152,423 Total liabilities, deferred inflow of resources
and fund balances 171,850,067$ 9,254,460 $ 813 $ 2,718,815$ 185,717,068 $ 369,541,223 $ The ac
companying notes are an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 25 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
For the Fiscal Year Ended June 30, 2022

Amounts re ported for gov ernmental activ ities in the Statement of Net Position are different because:

Total fund balances - governmental funds 268,152,423$
C apit al asset s 809,628,522
Accumula ted depreci a ti on (310,903,100)
Right-to-us e l ea s e a s s ets 5,139,591
Accumula ted a morti za ti on (1,182,517) 502,682,496 Other lon g-term assets and deferred outflows of resources are not available to pay for current period ex penditures and , therefore , are either deferred or not re ported in the funds.

Una va il a bl e revenues 12,285,241
Deferred outflows - pens ion rela ted 51,163,193
Deferred outflows - OPEB rel a ted 8,290,014 71,738,448 Long-term liabilities and deferred inflows of resources are not due and payable in the current period , and therefore , ar e not r eported in the funds.

Notes payable (4,638,830)
Pension bonds payable (132,880,000)
Ce rti fi ca te s of par tic ipat ion (46,765,000)
Unamortized premi um (discount ) (4,053,840)
Accrued interest payable on lon g-term debt (1,621,280) Loa n payable (4,936,710)
L ease liabilit y (4,023,883)
Net OP EB liabilit y (52,627,763)
Net pension liabilit y (195,484,103)
Deferred i nfl ows - pens ion rela ted (97,314,708)
Deferred i nfl ows - OPEB rela ted (19,893,049) (564,239,166) The substance of an advanced refundin g is r eported as deferrin g the difference and amortizin g it ov er fut ur e periods. 21,171,911
Internal service funds are used b y mana gement to char ge the costs of certain activ ities , suc h as equi pment mana gement and self-insurance , to individual funds. The assets , deferred outflows of of resources , liabilities , and deferred inflows of resources of the internal service funds are included in gov ernmental activ ities in the statement of net position. (149,953,502) Net position of governmental activities 149,552,610$
Capital assets used in governmental activities are not current financial resources and are therefore not reported in the governmental funds.

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

FINANCIAL SECTION CITY OF PASADENA 26 Annual Comprehensive Financial Report | June 30, 2022 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2022

Non-Major
Project General Housing Governmental
General Mana gement Debt Service Successo r Funds Total Revenues:

Ta xes 214 ,739,973$ - $ - $ - $ 11 ,158,765$ 225 ,898,738$ Licens es and per mits 3,940,945 - - - 11 ,342,539 15 ,283,484 Inter gov ernmental rev enues 35,880,294 4 ,518,028 - - 65 ,826,329 106 ,224,651 Cha rges for serv ices 32,950,457 50 ,479 - 55 ,362 10 ,491,702 43 ,548,000 Fines and forfeits 4 ,189,673 - - - - 4 ,189,673 Inv estment earnin gs9 08,360 - 253 6 ,508 1 ,254,814 2 ,169,935 Net chan ge in fair v alue of inv estments (5,492,911) - - - (9,351,353) (14,844,264) Lease rev enues 974 ,320 296 ,483 - 61 ,741 3 ,179,161 4 ,511,705 Interest - leases (as lessor ) 2,971 - - - 5 ,635 8 ,606 M isc ellaneous r ev enues 4 ,261,946 - - 220 ,971 3 ,743,851 8 ,226,768 Contributions 27 ,620 745 ,152 - - 2 ,316,223 3 ,088,995 Total revenues 292,383,648 5 ,610,142 253 344 ,582 99 ,967,666 398 ,306,291 Expenditures:

Current:

General government 63,478,360 221 ,140 6 ,400 - 103 ,817 63 ,809,717 Publ i c s a fe ty 144,019,978 911 ,105 - - 2 ,628,949 147 ,560,032 Trans portation 22,028,024 3 ,960,184 - - 14 ,806,908 40 ,795,116 Ut ility - - - - 124 ,195 124 ,195 Sa ni ta ti on - 1 ,211,157 - - 4 ,825,470 6 ,036,627 Health - - - - 16 ,505,189 16 ,505,189 C ultur e and leisur e 3 2 ,454,156 79 ,679 - - 13 ,341,727 45 ,875,562 Communi ty develo pment 8,432,414 42 ,796 - 5 ,335,625 41 ,883,327 55 ,694,162 Capit al outla y 37,658 24 ,963,110 - - 19 ,079 25 ,019,847 Debt service:

Pri ncipa l reti rement - - 3,025,836 - 2 ,390,000 5 ,415,836 Interest - - 4 ,057,541 - 2 ,336,898 6 ,394,439 Interest - leases (as lessee ) 26,306 112 - - 5 ,730 32 ,148 Lea s e payments 592,259 11 ,939 - - 511 ,437 1 ,115,635 Total expenditures 271,069,155 31,401,222 7,089,777 5,335,625 99,482,726 414,378,505 Excess (deficiency) of revenues over
(under) expenditures 21,314,493 (25,791,080) (7,089,524) (4,991,043) 484,940 (16,072,214) Other financing sources (uses):

Tr ansfer s in 2 0 ,288,374 27 ,042,903 7 ,089,743 - 19 ,073,943 73 ,494,963 Tr ansfer s out (34,079,764) (484,456) - - (30,458,585) (65,022,805) Transfer to com ponent unit (408,262) - - - - (408,262) Leases issued 37 ,583 53 ,726 - - 19 ,079 110 ,388 Total other financing sources (uses) (14,162,069) 26,612,173 7 ,089,743 - (11,365,563) 8,174,284 Net change in fund balances 7,152,424 821 ,093 219 (4,991,043) (10,880,623) (7,897,930) Fund ba l a nces a t begi nni ng of yea r 99,063,289 2,565,434 594 6,883,870 167,537,166 276,050,353 Fund balances at end of year 106,215,713$ 3,386,527$ 813$ 1,892,827$ 156,656,543$ 268,152,423$

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

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 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, 2022

Amounts reported for governmenta l activities in the s tatement of a ctivities are different beca us e:

Net change in fund balances - total governmental funds (7,897,930)$ Gov er nmental funds report capital outlay s as ex penditures. Howev er, in the statement of activ ities, the cos t of thes e a ss ets is a lloca ted over their es tima ted us eful lives a nd reported a s deprecia tion/ amor tization expense. This is the amount by which depreciation/amortization expense exceeded capital outlay tha t wa s ca pita lized in the current period.

Capital as s ets 24,038,483$
Depr ec iation/amor t izat ion ex pense (1 8 ,4 2 8 ,6 4 6 ) 5,609,837 The net effec t of v ar ious misc ellaneous t r ansac t ions 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 (370,004)
Revenues in the s tatement of a ctivities tha t do not provide current fina ncia l resources a re not reported as revenues in the funds. 3
,128,451
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 fir st issued, whereas these amounts are deferred and amortized in the statement of activ ities.

Principal paid on notes 316
,493
Principal paid on pension bonds 2,070,000
P r inc ipal paid on c er tific ates of par tic ipation 2,090,000 Principal paid on leases 1,115,710
Principal paid on loan 939,341 6 ,531,544 Bond deferred charges and similar items are recorded as expenditures in governmental funds when debt is first issued, whereas these pay ments ar e defer red and amortized in the statement of activ ities.

This amount is the net offset of the difference.
(1,113,394)
Int er nal 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' compensa ti on, genera l l i abi l ity, and 311 ca l l center, to i ndi vi dua l funds . The net revenue (expense) 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 . (37,255,307)
Some expenses reported in the statement of activ ities do not r equire the use of cur rent financial resources and, ther efore, are not reported as ex penditures in the gov ernmental funds.

Accrued interest on long-term debt 62,358
Amortization of bond premiums and discounts and deferred amounts of refunding 246,420 Net c hange in defer r ed (inflows) and out flows of r esour c es r elating to pension liabilit y 23,855,608 Net c hange in defer r ed (inflows) and out flows of r esour c es r elating to OP EB liabilit y (3,240,482) 20,923,904 Change in net position of governmental activities (10,442,899)$

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

FINANCIAL SECTION CITY OF PASADENA
28 Annual Comprehensive Financial Report | June 30, 2022 Light Off-Street
and Power Water Parking
Assets:

Current assets:

C ash and inv estment s 262,953,842$ 49,763,890$ 2,554,036$ Accounts recei va ble , net 29,011,594 11,566,050 907,611 Notes receivable , res tri cted 1,366,250 - -
Due from other funds 1,463,031 - -
Due from com ponent units - - -
Inv entories 18,962,825 8,173,054 -
Lease r ec eiv able - 8,810 352,580
Prepaids and other assets 1,322,361 512,001 234,601 Total current assets 315,079,903 70,023,805 4,048,828 Noncurrent restricted assets:

C ash and inv est ment s 14,571,142 15,694,760 - C ash and inv est ment s - st r anded inv est ment s r eser v e 4 1,665,801 - - C ash wit h fisc al a gent 36,336 4,310,938 1,876,860 Notes r ec eiv able 74,167 - -
Total noncurrent restricted assets 56,347,446 20,005,698 1,876,860 Other noncurrent assets:

Advances to other funds 110,000 - -
De posit with Inde pendent S ystem O perator (ISO ) 200,000 - - Prepaid lon g-t er m asset s 8,128,192 - -
Lease r eceiv able - 12,166 818,963
Ca pi ta l a s s ets , net of a ccumula ted
depreci ati on/amortiza ti on 536,499,394 229,797,739 41,731,964 Total other noncurrent assets 544,937,586 229,809,905 42,550,927 Total noncurrent assets 601,285,032 249,815,603 44,427,787 Total assets 916,364,935 319,839,408 48,476,615
Deferred outflow of resources:

Bond refunding related 910,550 66,162 -
P ension r elated 7,434,262 2,834,243 202,658 OPEB related 1,299,104 653,907 10,279
Total deferred outflow of resources 9,643,916 3,554,312 212,937 Liabilities:

Current liabilities:

Accounts payable and ac c r ued liabilities 1 8,615,739 8,307,010 942,997 De posits 1,254,197 378,281 249,038
Insurance claims payable - - -
Due to other funds - - -
Due to com ponent units 712 383 -
Unea rne d re venues 8,192,860 2,744,554 - C ompensat ed absenc es - - -
Revenue bonds 7,225,000 2,725,000 900,000
Loan payable - - 464,017
Lease liabilit y 529,291 425,421 9,350
Total current liabilities 35,817,799 14,580,649 2,565,402 Noncurrent liabilities:

Insurance claims pay able - - -
C ompensat ed absenc es - - -
Net pension liabilit y 34,636,782 10,972,536 503,819 Net OP EB liability 8,345,600 4,052,758 65,255 Revenue bonds 194,636,294 76,295,970 19,500,000
Loan payable - - 1,468,234
Lease liability 232,470 179,171 780
Total noncurrent liabilities 237,851,146 91,500,435 21,538,088 Total liabilities 273,668,945 106,081,084 24,103,490 Deferred inflows of resources:

Bond refundin g re l a ted 416,890 1,629,248 - Leas e rela ted - 20,793 1,150,050
P ension r elated 18,476,900 7,044,147 503,681 OPEB related 3,137,385 1,549,137 24,666
Total deferred inflows of resources 22,031,175 10,243,325 1,678,397 Net position:

Net inv estment in ca pit al assets 3 2 9,930,063 146,617,537 18,239,533 Restricted:

Debt service 14,601,470 20,005,698 1,876,860
Contribution to General Fund 18,000,000 1,544,138 - Stranded investments 43,780,340 - -
Other purposes 9,665,198 - -
Unre s tri cte d 214,331,660 38,901,938 2,791,272 Total net position 630,308,731$ 207,069,311$ 22,907,665$ Statement of Net Position
Proprietary Funds
June 30, 2022
The accompanying notes are an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 29

Governmental
Activities -
Non-Major Total Internal
Enterprise Enterprise Service
Funds Funds Funds Total
26,061,597$ 341 ,333,365$ 41 ,816,249$ 383 ,149,614$ 2,560,600 44 ,045,855 309 ,630 44 ,355,485 - 1,366,250 - 1 ,366,250 - 1 ,463,031 - 1 ,463,031 9,000 9 ,000 21 ,565 30 ,565 - 27 ,135,879 508 ,207 27 ,644,086 52,500 413 ,890 260 ,841 674 ,731 24,000 2 ,092,963 1 ,567,490 3 ,660,453 28,707,697 417 ,860,233 44 ,483,982 462 ,344,215 - 30 ,265,902 - 30 ,265,902 - 41 ,665,801 - 41 ,665,801 - 6,224,134 - 6 ,224,134 - 74 ,167 - 74 ,167 - 78,230,004 - 78 ,230,004 - 110 ,000 - 110 ,000 - 200 ,000 - 200 ,000 - 8,128,192 - 8 ,128,192 54,572 885 ,701 572 ,019 1 ,457,720 5,048,659 813,077,756 15,125,860 828,203,616 5,103,231 822 ,401,649 15 ,697,879 838 ,099,528 5,103,231 900 ,631,653 15 ,697,879 916 ,329,532 33,810,928 1 ,318,491,886 60 ,181,861 1 ,378,673,747 - 976,712 - 976,712 1,085,724 11,556,887 15,486,035 27,042,922 323,789 2,287,079 832,601 3,119,680 1,409,513 14 ,820,678 16 ,318,636 31 ,139,314 989,378 28 ,855,124 7 ,923,414 36 ,778,538 4,288,366 6 ,169,882 - 6 ,169,882 - - 34 ,307,683 34 ,307,683 - - 30,186,797 30 ,186,797 - 1,095 - 1 ,095 1,197,083 12 ,134,497 - 12 ,134,497 - - 11,355,797 11,355,797 - 10 ,850,000 - 10 ,850,000 - 464,017 - 464 ,017 - 964 ,062 - 964 ,062 6,474,827 59 ,438,677 83 ,773,691 143 ,212,368 - - 41,844,950 41,844,950 - - 831,254 831,254 4,161,466 50 ,274,603 56 ,564,964 106 ,839,567 2,055,517 14,519,130 5,285,616 19,804,746 - 290 ,432,264 - 290 ,432,264 - 1,468,234 - 1,468,234 - 412,421 - 412,421 6,216,983 357 ,106,652 104 ,526,784 461 ,633,436 12,691,810 416 ,545,329 188 ,300,475 604 ,845,804 - 2 ,046,138 - 2 ,046,138 116,969 1 ,287,812 810 ,969 2 ,098,781 2,698,428 28 ,723,156 35 ,344,616 64 ,067,772 776,976 5 ,488,164 1 ,997,939 7 ,486,103 3,592,373 37 ,545,270 38 ,153,524 75 ,698,794 4,931,690 499 ,718,823 14 ,314,891 514 ,033,714 - 36 ,484,028 - 36 ,484,028 - 19,544,138 - 19 ,544,138 - 43 ,780,340 - 43 ,780,340 - 9,665,198 - 9 ,665,198 14,004,568 270 ,029,438 (164,268,393) 105,761,045 18,936,258$ 879,221,965 $ (149,953,502) $ 729,268,463 $

FINANCIAL SECTION CITY OF PASADENA 30 Annual Comprehensive Financial Report | June 30, 2022 Statement of Revenues, Expenditures and Changes in Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2022
Light Off-Street
and Power Water Parkin g
Operating revenues:

Utilities 226,509,255$ 69,359,266 $ - $ Off-street parking - - 11,065,878 Refuse c ollec tion - - - Tel ecommuni ca ti on - - - Computing and communication services - - - Building maintenanc e - - - Fleet maintenance - - - Employee benefits - - - Insurance - - - 311 Ca l l Center - - - Total operating revenues 226,509,255 69,359,266 11,065,878 Operating expenses:

Utility pr oduc tion 109,812,044 32,508,513 - Utility tr ansmission and distr ibution 1 6 ,6 4 5 ,7 3 4 5,449,127 - Utility c ommer c ial and gener al 2 8 ,5 8 2 ,6 3 1 11,139,895 - Off-street parking - - 8,689,538 Refuse c ollec tion - - - Tel ecommuni ca ti ons - - - Computing and communication services - - - Building maintenanc e - - - Fleet maintenance - - - Benefits - - - Insurance - - - 311 Ca l l Center - - - Depreci a ti on/a morti za ti on 33,980,866 9,863,811 1,935,148 Total operating expenses 189,021, 275 58,961,346 10,624,686 Operating income (loss) 37,487,980 10,397,920 441,192 Nonoperating revenues (expenses):

Taxes - - - Intergovernmenta l revenues 4,007,119 1,919,178 - Inves tment ea rni ngs 2,092,656 481,011 14,559 Net cha nge in fa i r va l ue of i nves tments (21,039,163) (2,971,858) (85,425) Lease rev enues - 8,975 341,951 Int er est - leases (as lessor ) - 158 6,116 Noncompliance forfeitures - - - Other 1,756,962 1,645,576 9,553 Interes t expens e (7,696,508) (2,556,565) (276,049) Interes t - l eas es (a s l es s ee) (2,286) (1,564) (22) Ga i n (l os s ) on s a l e of a s s ets (169,589) 7,732 - Total nonoperating revenues (expenses) (21,050,809) (1,467,357) 10,683 Income (loss) before transfers and contributions 16,437,171 8,930,563 451,875 Capital contributions 4,026,308 532,373 - Tra ns fers i n 8,288,302 - 1,000,000 Tra ns fers out (18,000,000) (2,144,138) (83,000) Changes in net position 10,751,781 7,318,798 1,368,875 Net pos i ti on (defi ci t) a t begi nni ng of yea r 619,556,950 199,750,513 21,538,790 Net position (deficit) at end of year 630,308,731$ 207,069,311$ 22,907,665$

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

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 31

Governmental
Activities -
Non-Major Total Internal
Enterprise Enterprise Service
Funds Funds Funds Total
-$ 295,868,521$ -$ 295,868,521$ - 11,065,878 - 11,065,878 11,863,585 11,863,585 - 11,863,585 775,861 775,861 - 775,861 - - 18,147,130 18,147,130 - - 13,484,944 13,484,944 - - 13,908,698 13,908,698 - - 32,924,362 32,924,362 - - 20,587,688 20,587,688 - - 956,162 956,162 12,639,446 319,573,845 100,008,984 419,582,829 - 142,320,557 - 142,320,557 - 22,094,861 - 22,094,861 - 39,722,526 - 39,722,526 - 8,689,538 - 8,689,538 18,175,712 18,175,712 - 18,175,712 (6,614) (6,614) - (6,614) - - 15,842,370 15,842,370 - - 12,200,762 12,200,762 - - 10,229,520 10,229,520 -
- 36,504,936 36,504,936 - - 62,107,416 62,107,416 - - 704,865 704,865 811,543 46,591,368 2,550,477 49,141,845 18,980,641 277,587,948 140,140,346 417,728,294 (6,341,195) 41,985,897 (40,131,362) 1,854,535 6,161,960 6,161,960 - 6,161,960 261,541 6,187,838 - 6,187,838 204,282 2,792,508 68,609 2,861,117 (1,342,773) (25,439,219) (417,249) (25,856,468) 40,685 391,611 270,323 661,934 630 6,904 3,938 10,842 7,100,291 7,100,291 - 7,100,291 58,701 3,470,792 - 3,470,792 - (10,529,122) - (10,529,122) - (3,872) - (3,872) (4,680) (166,537) 60,206 (106,331) 12,480,637 (10,026,846) (14,173) (10,041,019) 6,139,442 31,959,051 (40,145,535) (8,186,484) - 4,558,681 - 4,558,681 266,764 9,555,066 4,565,533 14,120,599 (690,314) (20,917,452) (1,675,305) (22,592,757) 5,715,892 25,155,346 (37,255,307) (12,099,961) 13,220,366 854,066,619 (112,698,195) 741,368,424 18,936,258$ 879,221,965$ (149,953,502)$ 729,268,463$

FINANCIAL SECTION CITY OF PASADENA
32 Annual Comprehensive Financial Report | June 30, 2022 Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2022
Light Off-Street
and Power Water Parking
Cash Flows from Operating Activities:

Ca s h recei ved from cus tomers 223,863,626$ 67,518,802$ 10,795,664$ Cash payments to suppliers for goods and services (116,326,160) (35,933,817) (7,654,753) Ca s h pa yments to empl oyees for s ervi ces (32,161,075) (11,842,976) (1,079,689) Cash payments to other funds for services (6,749,927) (3,886,436) - Mi s cel l a neous revenue 1,756,962 1,645,576 -
Nonoperating miscellaneous revenue - - 9,553
Net cash provided by (used for) operating activities 70,383,426 17,501,149 2,070,775 Cash Flows from Noncapital Financing Activities:

Ca s h tra ns fers i n 6,825,271 - 1,000,000
Ca s h tra ns fers out (18,000,000) (2,144,138) (83,000) Advances from other funds 110,000 - -
Taxes received - - -
Intergovernmenta l revenues 4,007,119 1,919,178 - Net cash provided by (used for) noncapital financing activities (7,057,610) (224,960) 917,000 Cash Flows from Capital and Related Financing Activities:
(40,378,162) (18,406,479) (19,080)
- 22,480,000 -
14,014 73,345 -
- 9,134 -
(914,323) (397,080) (115,168)
3,395,981 2,181,826 -
- 6,256,610 -
- 1,629,248 -
- (298,163) -
(13,930,000) (17,508,658) (800,000)
Acquisition and construction of capital as sets
Proceeds from long-term de bt
Proceeds from s ale of capital assets
Proceeds from lease activities
Payme nts on lease s
Capital contributions
Bond premium received from de bt is suance
Bond premiums r eceive d from bond refunding Cost
of issuance of bonds
Principal paid on debt and finance obligation
Interest paid on debt and finance obligation (9,149,469) (2,491,969) (276,071) Net cash used for capital and related financing activities (60,961,959) (6,472,186) (1,210,319) Cash Flows from Investing Activities:

Proceeds from s al e of i nves tments 15,005,585 244,866 - Purcha s e of i nves tments (11,000,000) - -
Inves tment ea rni ngs 2,043,750 453,905 14,559
Net cha nge i n fa i r va l ue of i nves tments (21,039,163) (2,971,858) (85,425) P ay ments r ec eiv ed fr om loans made to supplier s 6 ,6 0 6, 25 0 - - Net cash provided by (used for) investing activities (8,383,578) (2,273,087) (70,866) Net increase (decrease) in cash and cash equivalents (6,019,721) 8,530,916 1,706,590 Cash and cash equivalents at beginning of year 277,750,119 57,830,713 2,724,306 Cash and cash equivalents at end of year 271,730,398 66,361,629 4,430,896 Reconciliation of cash and cash equivalents to amounts
reported on the Statement of Net Position:

Ca s h a nd i nves tments 262,953,842 49,763,890 2,554,036 Restricted:

Cash and stranded investments reserve 41,665,801 - - Ca s h a nd i nves tments 14,571,142 15,694,760 -
C ash with fisc al agent 3 6, 3 36 4,310,938 1,876,860 Less non-cash equivalents (47,496,723) (3,407,959) - Cash and cash equivalents at end of year 271,730,398$ 66,361,629$ 4,430,896$ The acco
mpanying notes are an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 33

Governmental
Activities -
Non-Major Total Internal
Enterprise Enterprise Service
Funds Funds Funds Total
14,210,267$ 316,388,359$ 100,243,730$ 416,632,089$ (10,565,251) (170,479,981) (38,040,331) (208,520,312) (7,189,806) (52,273,546) (61,614,717) (113,888,263) - (10,636,363) - (10,636,363) 58,701 3,461,239 - 3,461,239 - 9,553 - 9,553 (3,486,089) 86,469,261 588,682 87,057,943 266,764 8,092,035 4,565,533 12,657,568 (690,314) (20,917,452) (1,675,305) (22,592,757) - 110,000 - 110,000 6,161,960 6,161,960 - 6,161,960 261,541 6,187,838 - 6,187,838 5,999,951 (365,619) 2,890,228 2,524,609 (750,475) (59,554,196) (1,851,124) (61,405,320) - 22,480,000 - 22,480,000 (4,680) 82,679 64,468 147,147 51,212 60,346 252,370 312,716 - (1,426,571) - (1,426,571) - 5,577,807 - 5,577,807 - 6,256,610 - 6,256,610 - 1,629,248 - 1,629,248 - (298,163) - (298,163) - (32,238,658) - (32,238,658) - (11,917,509) - (11,917,509) (703,943) (69,348,407) (1,534,286) (70,882,693) - 15,250,451 - 15,250,451 - (11,000,000) - (11,000,000) 204,282 2,716,496 68,609 2,785,105 (1,342,773) (25,439,219) (417,249) (25,856,468) - 6,606,250 - 6,606,250 (1,138,491) (11,866,022) (348,640) (12,214,662) 671,428 4,889,213.00 1,595,984 6,485,197 25,390,169 363,695,307 40,220,265 403,915,572 26,061,597 368,584,520 41,816,249 410,400,769 26,061,597 341,333,365 41,816,249 383,149,614 - 41,665,801 - 41,665,801 - 30,265,902 - 30,265,902 - 6,224,134 - 6,224,134 - (50,904,682) - (50,904,682) 26,061,597$ 368,584,520$ 41,816,249$ 410,4 00,769$

FINANCIAL SECTION CITY OF PASADENA 34 Annual Comprehensive Financial Report | June 30, 2022 Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2022

Light Off-Street
and Power Water Parking
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities: 37,487,980$ 10,397,920 $ 441,192 $ Oper ating inc ome (loss)
Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciati on and amortiza tion 33,980,866 9,863,811 1,935,148 Mi s cella neous and other revenue (los s ) 1,756,962 1,645,576 9,553 (Increa s e) decrea s e i n a ccounts recei vabl e (4,305,390) (1,854,134) (247,729) Increas e (decreas e) in a llowance for uncoll ectible accounts 785,761 13,670 - Increase (decrease) in due to other funds - - - (Increa s e) decrea s e in inventories (2,168,233) (119,037) - (Increa s e) decrea s e in prepai ds a nd other a s s ets 330,241 (92,729) (22,485) Increase (decrease) in accounts payable and other
a ccrued lia bil ities 7,159,901 (721,588) 148,714 Increas e (decreas e) i n unearned revenue (45,044) - (1,130) Increase (decrease) in insurance claims pay able - - - Increase (decrease) in compensated absences - - - Increas e (decreas e) in depos its paya bl e 472,035 211,928 - Increas e (decreas e) i n deferred i nfl ows - non-l ea s e rel a ted 14,738,888 5,627,181 502,548 (Increa s e) decrea s e in deferred outflows 1,513,923 838,019 33,528 Inc r ease (dec r ease) in net OP EB liability (1, 985,223) (1,012,837) (704,753) Inc r ease (dec r ease) in net pension liability (1 9, 339,241) (7,296,631) (23,811) Total adjustments 32,895,446 7,103,229 1,629,583 Net cash provided by (used for) operating activities 70,383,426$ 17,501,149 $ 2,070,775 $ Non-Cash Investing, Capital and Financing Activities
Gai n (los s ) on dis pos ition of capita l a s s ets (169,589) $ 7,732 - Amortization of deferred cha rges (38,171) (77,657) - Amortization of premiums (dis counts ) 651,293 536,254 - Ca pital contributi ons (4,026,308) (532,373)
-

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

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 35

Governmental
Activities -
Non-Major Total Internal
Enterprise Enterprise Service
Funds Funds Funds Total
(6,341,195)$ 41,985,897$ (40,131,362)$ 1,854,535$ 811,543 46,591,368 2,550,477 49,141,845 7,158,992 10,571,083 - 10,571,083 (326,797) (6,734,050) 256,311 (6,477,739) - 799,431 (21,565) 777,866 - - 17,893,542 17,893,542 - (2,287,270) (67,370) (2,354,640) (24,000) 191,027 (569,978) (378,951) 261,626 6,848,653 (976,952) 5,871,701 1,197,083 1,150,909 - 1,150,909 - - 34,108,440 34,108,440 - - (789,036) (789,036) (5,202,673) (4,518,710) - (4,518,710) 3,196,392 24,065,009 35,582,479 59,647,488 354,831 2,740,301 3,313,363 6,053,664 (705,527) (4,408,340) (1,661,526) (6,069,866) (3,866,364) (30,526,047) (48,898,141) (79,424,188) 2,855,106 44,483,364 40,720,044 85,203,408 (3,486,089)$ 86,469,261$ 588,682$ 87,057,943$ - (161,857) - (161,857)$ - (115,828) - (115,828) - 1,187,547 - 1,187,547 - (4,558,681) - (4,558,681)

FINANCIAL SECTION CITY OF PASADENA 36 Annual Comprehensive Financial Report | June 30, 2022 Statement of Net Position
Fiduciary Funds
June 30, 2022

Employee
Benefit Private-Pur pose
Trust Funds Custodial Funds Trust Funds Total
Assets:

Cash and cash equivalents 327,861,636 $ 458,511 $ 192,734 $ 328,512,881$ C ash wit h fiscal agent - - 7,943 7,943 Short-term inves tments 608,561 - - 608,561 Receivables:

Accounts recei va bl e - 2 ,317,108 - 2 ,317,108 Contribution 2 ,634,599 - - 2 ,634,599 Interest 283 ,993 - - 283,993 Notes receivable - - 515,000 515,000 Allowanc e for unc ollec t ible long-ter m r ec eiv ables - - (515,000) (515,000) Total receivables 2,918,592 2,317,108 - 5,235,700 Other assets - 4,414 - 4,414 Investments, at fair value:

Government and a gencies 19,255,353 - - 19 ,255,353 Corporate obli gat ions 2 2,970,722 - - 22 ,970,722 Fixed income mutual fund 15 ,676,777 - - 15 ,676,777 Rea l es tate 15,029,667 - - 15,029,667 Corporate stocks 40,724,068 - - 40 ,724,068 Total investments 113,656,587 - - 113 ,656,587 Ca pit al asset s , net - - 214,261 214,261 Total assets 445,045,376 2,780,033 414 ,938 448,240,347 Liabilities:

Accounts payable and ac c r ued liabilities 6 0,343 1,492,711 - 1 ,553,054 Due to other governments - 3,960 - 3,960 Due to bondholders - 944 ,635 - 944,635 Pendi n g purchases 8,230,969 - - 8 ,230,969 Total liabilities 8,291,312 2,441,306 - 10 ,732,618 Net Position/(Deficit):

Res tri cted for pensions 436,754,064 - - 436 ,754,064 Res tri cted for s pecial assessments - (1,655) - (1,655) Res tri cted for l i bra ry equi pment - 304,830 - 304,830 Res tri cted for WIOA - 833 ,001 - 833,001 Restricted for bondholders - (797,449) - (797,449) Held in trust for other purposes - - 414,938 414,938 Total net position 436,754,064$ 338,727$ 414,938$ 437,507,729$

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

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 37 Statement of Changes in Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2022

Employee
Benefit Private Pur pose
Trust Funds Custodial Funds Trust Funds Total
Additions:

Contributions:

Pl an members 16,645,496 $ - $ - $ 16,645,496$ Property ta xes - - 8 ,572,235 8 ,572,235 Inter gov ernmental rev enue - 3 ,719,300 - 3 ,719,300 Assessment r ev enue - 114 ,055 - 114 ,055 Total contributions 16,645,496 3 ,833,355 8 ,572,235 29 ,051,086 Net investment income (loss):

Inv estment earnin gs (loss ) (40,644,722) (10,997) 7 (40,655,712) Interest (12,759,021) - - (12,759,021) Dividends 1 ,786,426 - - 1 ,786,426 Gross investment income (loss) (51,617,317) (10,997) 7 (51,628,307) Les s i nvestment ex penses (337,741) - - (337,741) Total net investment income (51,955,058) (10,997) 7 (51,966,048) M isc ellaneous r ev enues - - 7 ,745 7 ,745 Total additions (35,309,562) 3,822,358 8 ,579,987 (22,907,217) Deductions:

Benefits paid to par tic ipants 3 5,6 61 ,93 2 - - 35,661,932 Contributi ons to Ci ty - 27,620 - 27,620 Program expense - 3,980,290 - 3,980,290 Fiscal a genc y expenses - - 1,902 1 ,902 Interest ex pense - 56,632 - 56 ,632 Statutory pass-through expenses - - 7,638,691 7,638,691 Admi ni s tra ti ve expens es 576,477 2,999 - 579,476 Count y administr ativ e ex penses - - 933,544 933 ,544 Succes s or a gency a dmi ni s tra ti ve cos t a l l owa nce - - 36,142 36,142 Total deductions 36,238,409 4,067,541 8,610,279 48,916,229 Transfers:

Transfers in - - 24,899 24,899 Transfers out - - (24,899) (24,899) Total transfers - - - - Change in net position (71,547,971) (245,183) (30,292) (71,823,446) Net position (defic it) held in tr ust -
begi nni ng, a s res ta ted 508,302,035 583,910 445,230 509,331,175 Net position held in trust - ending 436,754,064$ 338,727$ 414,938$ 437,507,729$

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

FINANCIAL SECTION CITY OF PASADENA 38 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Net Position
Discretely Presented Component Units
June 30, 2022

Rose Bowl Pasadena Center Pasadena
Operating O perating Community
Company Company Access Corp.T o t a l
Assets:

Current assets:

Cash and investments 36 ,112,298$ 10 ,572,001$ 360 ,983$ 47 ,045,282$ Accounts recei va bl e, net 5 ,961,352 943 ,736 100 6 ,905,188 Lease receivable - 7 ,495 - 7 ,495 Inventor y 122,897 - - 122 ,897 Due from Cit y of Pasadena 225 ,789 1 ,869,378 - 2 ,095,167 Pre paids and other assets 347 ,573 116 ,600 23 ,004 487 ,177 Total current assets 42,769,909 13 ,509,210 384 ,087 56 ,663,206 Noncurrent assets:

Restr ic t ed asset s - c ash and inv est ment s 1 1 ,188,835 8 ,743,502 474 ,874 20 ,407,211 Due from Cit y of Pa s a dena 438 ,830 - - 438 ,830 L ease r ec eiv able 4 7 9 ,042 - - 479 ,042 Ca pi ta l a s s ets :

Not bein g de preci a ted/amor t ized 97 0 2 ,474,302 - 2 ,475,272 Bein g de preci a ted/amor tized , net 155 ,450,983 119 ,098,828 280 ,093 274 ,829,904 Total noncurrent assets 167,558,660 130 ,316,632 754 ,967 298 ,630,259 Total assets 210,328,569 143 ,825,842 1 ,139,054 355 ,293,465 Deferred outflow of resources:

Accumulated decr ease in fair v alue of hed gin g - 10,763,362 - 10,763,362 Deferred refundin g cha rges 1 ,776,732 911 ,331 - 2 ,688,063 Pension related 888 ,259 - - 888 ,259 Total deferred outflow of resources 2,664,991 11 ,674,693 - 14 ,339,684 Liabilities:

Current liabilities:

Accounts payable and ac c r ued liabilities 6 ,003,963 765 ,219 8 ,021 6 ,777,203 Accrued salaries and benefits 640 ,588 357 ,887 24 ,320 1 ,022,795 Accrued interest payable 3,110,530 565,433 35 3,675,998 Due to Cit y of Pasadena 1 ,532,654 - - 1 ,532,654 De pos i ts 377 ,285 1 ,399,386 - 1 ,776,671 Lon g-term adv ance due within one yea r 100 ,000 - - 100 ,000 Com pensated absences due within one year - - 30 ,259 30 ,259 Lease liabilit y due within one year - 23 ,334 169 ,339 192 ,673 Lon g-term debt due within one year 4 ,670,904 6 ,025,197 - 10 ,696,101 Unearned rev enue 4 ,298,319 - - 4 ,298,319 Total current liabilities 20,734,243 9 ,136,456 231 ,974 30 ,102,673 Noncurrent liabilities:

Der iv ativ e instr ument liabilit y - 10 ,763,362 - 10 ,763,362 Lon g-term a dva nce 500 ,000 - - 500 ,000 Accrued salaries and benefits - 146 ,626 - 146 ,626 Lease liabilit y - - 28 ,403 28 ,403 Lon g-term debt , net of current portion 199 ,571,679 134 ,478,644 - 334 ,050,323 Net pension liabilit y 1,390,048 - - 1 ,390,048 Total noncurrent liabilities 201,461,727 145 ,388,632 28 ,403 346 ,878,762 Total liabilities 222,195,970 154 ,525,088 260 ,377 376 ,981,435 Deferred inflow of resources:

Deferred refundin g cha rge- 4 ,166,486 - 4 ,166,486 Serv ice concession a greement - 193 ,519 - 193 ,519 Lea s e rel a ted 694 ,573 7 ,488 - 702 ,061 Pension related 1 ,213,439 - - 1 ,213,439 Total deferred inflow of resources 1,908,012 4 ,367,493 - 6 ,275,505 Net Position:

Net inv estment in c a pital assets (16,001,853) 2 ,432,565 82 ,351 (13,486,937) Restricted 11 ,188,835 870 ,240 474 ,874 12 ,533,949 Unrestricted (6,297,404) (6,694,851) 321 ,452 (12,670,803) Total net position (11,110,422)$ (3,392,046) $ 878,677 $ (13,623,791)$

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

CITY OF PASADENA FINANCIAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 39 Combining Statement of Revenues, Expenditures and Changes in Net Position Discretely Presented Component Units
For the Fiscal Year Ended June 30, 2022

Rose Bowl Pasadena Center Pasadena
Operating Operating Community
Company Company Access Corp.T o t a l
Operating revenues:

Charges for services:

Rose Bowl 30 ,225,641$ - $ - $ 30 ,225,641$ Golf course 8 ,624,885 - - 8 ,624,885 Pasadena Center O peratin g Compan y - 8 ,494,453 - 8 ,494,453 Pasadena Communit y Ac c ess C orporation - - 1 ,027,814 1 ,027,814 Total operating revenues 38,850,526 8 ,494,453 1 ,027,814 48 ,372,793 Operating expenses:

Rose Bowl 26 ,329,694 - - 26 ,329,694 Golf course 5 ,993,624 - - 5 ,993,624 Pasadena Center O peratin g Compan y - 8 ,542,537 - 8 ,542,537 Pasadena Communit y Ac c ess C orporation - - 835 ,437 835 ,437 De preci a ti on/a morti za ti on 12 ,454,402 3 ,975,554 213 ,168 16 ,643,124 Total operating expenses 44,777,720 12 ,518,091 1 ,048,605 58 ,344,416 Operating loss (5,927,194) (4,023,638) (20,791) (9,971,623) Nonoperating revenues (expenses):

Contributions from Cit y of Pasadena 9 ,258,005 9 ,750,623 - 19 ,008,628 Grant revenues 10 ,000,000 2 ,552,274 - 12 ,552,274 Tour ism business im provement district tax - 3 ,189,250 - 3 ,189,250 Facilit y res tora ti on fee - 65 ,872 - 65 ,872 Inv estment income (loss ) (3,997,110) (2,486,935) 49 (6,483,996) Interest ex pense (12,275,424) (5,490,931) (595) (17,766,950) Public, education, and government (PEG) revenue - - 143,220 143,220 Other nono peratin g revenues 5 ,175,617 - - 5 ,175,617 Total nonoperating revenues 8,161,088 7 ,580,153 142 ,674 15 ,883,915 Income before capital contributions 2,233,894 3 ,556,515 121 ,883 5 ,912,292 Capital contributions - 76 ,055 - 76 ,055 Changes in net position 2,233,894 3 ,632,570 121 ,883 5 ,988,347 Net pos i ti on a t begi nni ng of yea r (13,344,316) (7,024,616) 425,140 (19,943,792) Net position at beginning of year, as restated - - 756,794 756,794 Net position at end of year (11,110,422)$ (3,392,046) $ 878,677 $ (13,623,791)$

The accompanying notes are an integral part of these financial statements (This page intentionally left blank)
ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022

NOTES TO THE

BASIC FINANCIAL STATEMENTS

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 42 Annual Comprehensive Financial Report | June 30, 2022

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 43 Note Index
(1) Summary of Significant Accounting Policies ................................................................................................................. 44 (A) Reporting Entity ....................................................................................................................................................... 44 (B) Basis of Accounting and Measurement Focus .......................................................................................................... 47 (C) Major Funds, Internal Service Funds and Fiduciary Fund Types .............................................................................. 50 (D) Cash Equivalents....................................................................................................................................................... 51 (E) Cash and Investments .............................................................................................................................................. 51 (F) Inventories ............................................................................................................................................................... 51 (G) Advances to Other Funds ......................................................................................................................................... 51 (H) Prepaids .................................................................................................................................................................... 51 (I) Restricted Cash and Investments ............................................................................................................................. 52 (J) Property Held for Resale .......................................................................................................................................... 52 (K) Capital Assets ........................................................................................................................................................... 52 (L) Leases (new in fiscal year 2022) ............................................................................................................................... 53 (M) Insurance Claims Payable ......................................................................................................................................... 53 (N) Compensated Absences ........................................................................................................................................... 53 (O) Net Pension Liability ................................................................................................................................................. 53 (P) Postemployment Benefits Other than Pension Obligation (OPEB) .......................................................................... 54 (Q) Bond Premiums / Discounts / Issuance Costs .......................................................................................................... 54 (R) Deferred Outflows and Inflows of Resources ........................................................................................................... 54 (S) Fund Balance ............................................................................................................................................................ 54 (T) Property Taxes .......................................................................................................................................................... 55 (U) Use of Estimates ....................................................................................................................................................... 55 (V) Interfund Activities ................................................................................................................................................... 56 (W) Endowments ............................................................................................................................................................ 56 (X) New and Future Accounting Pronouncements ........................................................................................................ 56 Detailed Notes to the Basic Financial Statements ................................................................................................................... 57 (2) Cash and Investments ................................................................................................................................................... 57 (3) Accounts Receivable ..................................................................................................................................................... 61 (4) Notes Receivable – Primary Government ..................................................................................................................... 62 (5) Due to and from Other Funds ....................................................................................................................................... 62 (6) Advances to and from Other Funds .............................................................................................................................. 63 (7) Capital Assets ................................................................................................................................................................ 64 (8) Leases ........................................................................................................................................................................... 68 (9) Deferred Inflows and Outflows .................................................................................................................................... 71 (10) Long-Term Debt and Other Liabilities ........................................................................................................................... 73 (11) Derivative Instruments ................................................................................................................................................. 85 (12) Fund Balance and Net Position ..................................................................................................................................... 88 (13) Restricted Net Position – Stranded Investments .......................................................................................................... 91 (14) Accumulated Fund Deficits ........................................................................................................................................... 92 (15) Excess of Expenditures over Appropriations ................................................................................................................ 94 (16) Pledged Revenue .......................................................................................................................................................... 95 (17) Transfers ....................................................................................................................................................................... 96 (18) Self-Insurance ............................................................................................................................................................... 99 (19) Deferred Compensation Plan ..................................................................................................................................... 101 (20) Pension Plans .............................................................................................................................................................. 101 (21) Postemployment Benefits Other than Pensions (OPEB) ............................................................................................ 113 (22) Commitments and Contingencies ............................................................................................................................... 118 (23) Subsequent Events ..................................................................................................................................................... 119

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA

44 Annual Comprehensive Financial Report | June 30, 2022 (1) Summary of Signific ant Accounting Policies

The basic financial statements of the City of Pasadena, California (City) have been 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 (7) 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 operational re sponsibility for the Authority. The 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 blended with the Debt Service and Capital Projects Funds.

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, 2022 45 (1) Summary of Significant A ccounting Policies (Continued)

(A) Reporting Entity (Continued)

Pasadena Housing Authority (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 authorizes and empowers the PPFA to, among other things, (1) issue bonds and to expend or loan the proceeds thereof to the City or PCDC, (2) finance the acquisition and/or construction of public capital improvements and to sell or lease such improvements to the City or PCDC, and (3) 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 Service and Capital Projects Fund. 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 Trust Fund. Additional information related to FPRS is included in the detailed notes on Pension Plans.

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 a nd 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, 2022 (1) Summary of Significant Accounting Policies (Continued)

(A) Reporting Entity (Continued)

RBOC operations are discretely presented in the accompanying 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. Separate component unit financial statemen ts of RBOC are issued and available upon request from the RBOC Administration Office at 1001 Rose Bowl Drive, Pasadena, California 91103. RBOC’s financials were audited in accordance with Government Auditing Standards . Additional information is available at https://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 programs, 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. 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’s financials were audited in accordance with Government Auditing Standards . Additional information is available at https://www.visitpasadena.com/.

Pasadena Community Access Corporation 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 to communicate and share information. The 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 can impose its will on PCAC through its ability to appoint a majority of its board members. PCAC’s budget is reviewed and approved by the City Council. The City provides support through the 1% Public, Education, and Government (PEG) allocation. Separate component unit financial statements of PCAC are issued and available upon request from Pasadena Community Access Corporation, 150 South Los Robles Avenue, Pasa dena, CA 91101. PCAC’s financials were audited in accordance with Government Auditing Standards . Additional information is available at

https://www.pasadenamedia.org/.

Jointly Governed Organizations

The following organizations are considered to be jointly governed organizations of the 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 (JPA) between the three cities for the sole purpose of owning and operating the Bob Hope Airport. Three commissioners fr om each city, appointed by each city's respective city council, make up the nine members of the Airport Authority. There is no ongo ing 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, 2022 47 (1) Summary of Significant Accounting Policies (Continued)

(A) Reporting Entity (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 members 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, 2022 (1) Summary of Significant A ccounting Policies (Continued) (B)
Basis of Accounting and Measurement Focus (Continued)
financial statements. Basis of accounting refers to when revenues and expenditures are re cognized in the accounts and r
eported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabi
lities are recognized in accordance with various GASB Statements.

Program reven
ues include: (1) charges to customers or ap plicants who purchase, use, or directly ben efit 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 in
cluded 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.

Fun
d Financial Statements
The un
derlying accounting system of the City is organized and operated based on 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 accounts that comprise its asse ts, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds b ased
upon
the purposes for which they are to be spent and how spending activities are controlled.

Fun
d 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 Fun
ds
In the fund fi
nancial statements, governmental funds are presented using the modified-accrual basis o f accou
nting. 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: tax
es, 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 relate
d goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the under lying exchange transaction on wh ich 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 legal claim to the revenues arises or when they are received, whichever occurs first.

In t
he 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 a measure of “available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) a nd decreases (ex
penditures and other financing uses) in net cu rrent 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, 2022 49 (1) Summary of Significant A ccounting Policies (Continued)

(B) Basis of Accounting and Measurement Focus (Continued)

Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets despite their spending measurement focus. Special reportin g treatments are used to i ndicate 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 long-term receivables are reflected in nonspendable 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 Enterprise 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 g oods or services are deliver ed. 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 prod ucing 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 se rvices, administrative expenses, and depreciation/amortization 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 combined in a fund, expenses are paid first from restricted resources, and then from unrestricted resources.

Fiduciary Funds

The City’s fiduciary funds include Employee Benefit Tr ust 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, 2022 (1) Summary of Significant A ccounting Policies (Continued) (C) Major F
unds, Internal Service Funds and Fiduciary Fund Types
The City reports the following major governmental funds:

General Fund – The primary fund of the City; accounts 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. Included under the General Fund are American Rescue Plan Act (ARPA) activities. ARPA funds are restricted for the bridging of budget shortfalls, ed ucation, housing, and healthcare-related funding, including COVID-19 vaccines, testing and contact tracing, and emergency paid leave.

Project Management Capital Projects Fund – Accounts 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 – Accounts the payment of interest and principal of the pension bonds and other city-wide obligations.

Housing Successor Fund – Accounts 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 – Accounts the oper ations 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 – Accounts 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 the parking funds into the Off- Street Parking Fund. This fund accounts the operation of the parking facilities throughout the City.

The City reports the following internal service funds:

Computing and communication servic es, building maintenance, fleet replacement, fleet repair and maintenance, employee benefits, workers’ compensation, general liability, and the 311 call center to other departments or agencies of the City.

The City reports the following fiduciary fund types:

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

Custodial Funds – These funds account for resources held by the City in a purely custodial capacity. Custodial funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. The custodial funds account for monies received from agencies and financial activities for: (1) La ke/Washington Special Assessm ent District, (2) library equipment, (3) the Workforce Innovation and Opportunity Act (WIOA), and (4) the Open Space Assessment District.

Private-Purpose Trust Funds – These funds account for monies held on behalf of others in a fiduciary capacity, typically pursuant to a formal trust agreem ent. 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.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 51 (1) Summary of Significant A ccounting Policies (Continued) (D) Cash Eq
uivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liqui d investments t
hat are both readily convertible to known am ounts of cash or so near their maturity that th ey present i
nsignificant 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 i
nvestment 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 value of those investme nts is not significantly affected by the i
mpairment 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 earni
ngs, 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 accom
panying financial statements as cash and investments.

Investment income earned by the pooled i
nvestments is allocated to the various fu nds based on each fund’s average cash and investment balance, except for investment earnings associated with the following funds no t legally required to receive
pooled investment earnings that have been assigned to and record ed 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, Genera l Liability, Employme
nt and Training, South Lake Business Improvem ent District and Old Pasadena Business Improvement District.

The City enter
s 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) Inve
ntories
Inventories he
ld 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 inventories, those held for consumption in operations, those capitalized, and inventory held for resale. Inv
entories 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. (G) Advance
s to Other Funds
Long-term interfund advances are recorded as a receivable and as nonspendable fund balance by the general fund since they do not reflect current appr
opriable reserves.
(H) Prepaids
Certain pa
yments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid assets. The Ci
ty utilizes the allocation method to reco rd its prepaids. The prepaid assets record ed in the Governmental
Funds do not reflect current appropriable resources and, thus, an equivalent portion of fund balance is nonspendable.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 52 Annual Comprehensive Financial Report | June 30, 2022 (1) Summary of Significant A ccounting Policies (Continued) (I) Restricte
d Cash and Investments
The City considers all cash and invest ments from bond proceeds in Proprietary Funds as restricted. The City is legally man
dated under bond indentures to use these resources only for the purposes specified. Also included as restricted cas
h and investments ar e amounts accumulated in the Light and Power Fund for the purpose of meeting
future contractual commitments, including th e Stranded Investment Reserve (SIR) Utilization Plan (discussed further in the detailed notes), deferred comp ensation, and all cash and investments belonging to Employe
e Benefit Trust and Custodial Funds held by trustees.
(J) Property He
ld 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 As sets
Capital assets (including infrastructure) greater than $10,000 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 service concession agreements are reported at acquisition value. The costs of normal maintenance 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.

Capital assets
are depreciated or amortized using the st raight-line method over the following estimated useful lives:

Production pla nt 20 to 40 years Source of s upply 20 to 50 years Trans mis s i on pla nt 25 to 40 years Pumping pl ant 10 to 50 years Dis tribution pla nt 20 to 40 years Treatment pla nt 10 to 20 years Genera l pl ant 10 to 40 years Tra ns mis s ion and dis tributi on pla nt 10 to 80 years Equi pment 4 to 10 years General pl ant 6 to 50 years Ri ght-to-us e l eas ed a s s ets Equi pment 4 to 10 years Ri ght-to-us e l eas ed as s ets Shorter of the leased asset's useful life or the lease term
Buildings and improvements 20 to 50 years Buil di ng a nd i mprovements 20 to 50 years Machinery and equipment 2 to 20 years Machinery and equipment 2 to 20 years Infras tructure 8 to 200 years Ri ght-to-us e l eas ed as s ets Shorter of the leased asset's useful life or the lease term
Light and Power Fund Water Fund
All Other Funds
Shorter of the leased asset's
useful life or the lease term

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 53 (1) Summary of Significant A ccounting Policies (Continued)

(L) Leases (new in fiscal year 2022)

Leases are financings of the right-to-use an underlying asset. In accordance with GASB Statement No. 87, Leases, parties to a lease agreement, the lesse e and lessor, are required to recogniz e a lease liability and an intangible right-to-use lease asset (a capital asset hereinafter refe rred to as the lease asset), and a lease receivable and deferred inflow of resources, respectively. A general de scription of the leasing arrangements, the aggregated amounts of resource inflows and outflows recognized from lease contracts, including those not included in the measurement of the lease liability and receivable, and the disclosure of the lo ng-term effect of lease arrangements on a government’s resources are further discussed in the detailed notes.

(M) Insurance Claims Payable

The City records a liability for material litigation, 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. Detailed notes discuss excess liability insurance covers claims greater than the self-insurance thresholds.

(N) 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 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 is attributable to services already rendered and it is probable that virtually all these balances will be liquidated by either paid time-off or payments upon termination 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.

(O) 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 im plementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website, www.calpers.ca.gov, under Forms and Publications.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA

54 Annual Comprehensive Financial Report | June 30, 2022 (1) Summary of Significant A ccounting Policies (Continued)

(P) 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 and are in accordance with the im plementation of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. 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.

(Q) Bond Premiums / Discounts / Issuance Costs

For Governmental-wide and Proprietar y 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.

(R) Deferred Outflows and Inflows of Resources

Pursuant to GASB Statements No. 63 and 65, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Po sition and Items Previously Reported as Assets and Liabilities , respectively, the City recognizes deferred outflows and inflows of reso urces. A deferred outflow of resources is defined as a consumption of net assets by the government that is applicable to a future reporting period. A deferred inflow of resources is defined as an acquisition of net assets by the government that is applicable to a future reporting period.

(S) 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 nonspendable 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.

• 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.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 55 (1) Summary of Significant A ccounting Policies (Continued)

(S) Fund Balance (Continued)

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.

(T) 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 Nov ember 1 - 1st installment
M ar c h 1 - 2nd installment
C ollec tion Dec ember 1 0 - 1st installment
Apr il 1 0 - 2nd installment

Property taxes on the secured roll are due in two installments: on November 1 and March 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.

(U) Use of Estimates

The preparation of financial statements in conformity with accounting 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 a ssets, 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.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 56 Annual Comprehensive Financial Report | June 30, 2022 (1) Summary of Significant A ccounting Policies (Continued) (V) I
nterfund Activities
Certain elimin
ations have been made as prescribed by GASB Statement No. 34, Basic Financial Statements – and Mana
gement’s Discussion and Analysis – for State and Local Governments , regarding in terfund activities, payables, and
receivables. All internal balances in the Statement of Net Position 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.
(W) En
dowments
The City has been the recipient of endowments that are recorded in Permanent Funds. The endo wments are legally restrict
ed 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 th e City was made. Please r
efer to the Permanent Funds section for additional details. (X) New and Fut
ure Accounting Pronouncements
In fiscal
year ended June 30, 2022, the City adopted GASB Statement No. 87, Leases.

GASB
Statement No. 87, Leases, establishes a uniform approach for lease accounting based on the principle that leases are fina
ncings of the right to use an underlying asset. In accordance with the statement, parties to a lease agreement, the lessee and lessor, are required to recogniz e a lease liability and an intangible right-to-use lease asset (a
capital asset hereinafter referred to as the leas e asset), and a lease receivable and deferred inflow of resources, respectively. The new leas es standard also requires enhanced disclosure which include a general description of the leasing arrangemen t, the aggregated amount of resour ce inflows and outflows recognized from lease contracts, incl
uding those not included in the measurement of the lease liability and receivable, a nd the dis
closure of the long-term effect of lease arrangements on a government’s resources.

GASB has issued the following pronouncements that may affect future financial positi on, results of operations,
cash flows, or
financial presentation of the City upon implementation. Management has not yet evalu ated the effect
of implementation of these standards:

GASB
Statement
No. GASB Accounting Standard
Effective Fiscal
Year
91 Conduit Debt Obligations 2023
94 Public-Private and Public-Public Partnerships and
Availability Payment Arrangements 2023
96 Subscription-Based Information Technology Arrangements 2023 99 Omnibus 2022 2023 and 2024
100
Accounting Changes and Error Corrections—an amendment
of GASB Statement No. 62 2024
101 Compensated Absences 2025

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 57 Detailed Notes to the Basic Financial Statements
(2) Cash and Investments
Primary Gover
nment
Cash and inves
tments as of June 30, 2022 are classified in the accompanying financial statements as follows:

Statement of net position:

Ca s h a nd i nves tments 621,162,579$
Res tri cted ca s h a nd i nves tments 100,287,212
Fiduciary funds:

Ca s h a nd ca s h equi va l ents 328,512,881
Tota l ca s h a nd i nves tments 1,049,962,672$
Cash on hand 52,737$
Deposits with financial institutions (2,207,809)
Investments 1,052,117,744
Total cash and investments 1,049,962,672$
Ca s h a nd i nves tments a s of June 30, 2022 cons i s t of the fol l owi ng:

Inve
stments Authorized 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 Authori zed by State Law Pol i cy Maturi ty of Portfol i o i n One Is suer Local Agency Bonds Yes 5 years None None
US Treasury Obl i gati ons 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
Regi stered State Warrants Yes N/A None None
* Base d on state law re quire m e nts or inve stm e nt policy re quire m e nts, whiche ve r is m ore re strictive .

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA

58 Annual Comprehensive Financial Report | June 30, 2022 (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 trust ee. 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 Inves tment Type Ma turity
US Treasury Obligations None
US Agency Securi ti es None
Ba nker's Accepta nce 360 days
Commerci al Paper 270 days
Money Ma rke t Mutua l Funds N/A
Investment Contracts 20-30 years
Pre-refunded Municipal Bonds None
Repurchase Agreements 1 year
Loca l 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 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 92,512,513 $ 29,785,275 $ 13,427,756 $ 49,299,482 $ - $ Supernationals 23,391,788 - 4,830,263 18,561,525 - Federal Agency Securities 353,226,428 3,928,323 49,540,887 274,208,582 25,548,636 Municipal Bonds 40,230,551 10,435,038 8,430,193 20,540,376 824,944 Certificates of Deposit 1,235,299 - - 1,235,299 - California Asset Management Program 76,825,076 76,825,076 - - - Money Market Funds 692 692 - - - Commercial Paper Disc 9,762,274 9,762,274 - - - State Investment Pool 48,331,063 48,331,063 - - - US Treasury 56,478,385 9,657,254 23,734,883 23,086,248 - Held by Bond Trustee:

Federal Agency Securities 12,122,475 - - 5,285,599 6,836,876 Money Market Funds 1,212,148 1,212,148 - - - Held by Pension Section 115 Trustee:

Mutual Fund 11,696,726 11,696,726 - - - Deferred Compensation Plan:

Mutual Funds 325,092,326 325,092,326 - - - Total 1,052,117,744 $ 526,726,196 $ 99,963,982 $ 392,217,111 $ 33,210,456 $ Remaining Maturity (in Months)

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 59 (2) Cash and Investments (Continued)

Disclosures Relating to Credit 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 92,512,513 $ A 18,551,820 $ - $ 73,960,693$ - $ Supernationals 23,391,788 A 23,391,788 - - - Federal Agency Securities 353,226,428 N/A 353,226,428 - - - Municipal Bond 40,230,551 N/A 3,549,562 35,558,233 1,122,756 - Certificate of Deposit 1,235,299 A 1,235,299 California Asset Management Program 76,825,076 N/A - - - 76,825,076 Money Market Funds 692 N/A - - - 692 Commercial Paper Disc 9,762,274 AA - - 9,762,274 - State Investment Pool 48,331,063 N/A - - - 48,331,063 US Treasury 56,478,385 N/A 56,478,385 - - - Held by Bond Trustee:

Federal Agency Securities 12,122,475 A 12,122,475 - - - Money Market Funds 1,212,148 A 1,212,148 - - - Held by Pension Section 115 Trustee:

Mutual Fund 11,696,726 N/A - 11,696,72 6 - - Deferred Compensation Plan:

Mutual Fund 325,092,326 N/A - 325,092,32 6 - -
Total 1,052,117,744$ 468,532,606$ 372,347,285$ 84,845,723$ 126,392,130$ 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:

Issuer Type Amount
Federal Home Loan Bank Federal Agency Securities 183,354,908$ Federal Home Loan Mortgage Bank Federal Agency Securities 96,994,346 Feder al Far m C r edit Bank Feder al Agency Secur ities 8 0,3 5 1,7 41 U.S. Treasury U.S. Tresury 56,478,385

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).

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 60 Annual Comprehensive Financial Report | June 30, 2022 (2) Cash and Investments (Continued)
The market value of the pledged securities in the collate ral pool must equal at least 110% of the 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, 2022, the City did not have bank balances related to deposits with financial institutions in excess of the federal depository insurance limits 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.

California Asset Management Program (CAMP)
The City is a participant in the California Asset Mana gement Program (CAMP). CAMP is an investment pool offered by the California Asset Management Trust and created th rough a joint powers agency as a pooled short-term portfolio and cash management vehicle for California public agencies under California Government Code Section 53601(p). CAMP is governed by a seven-member Board of Trustees comprised of finance directors and treasurers of California public agencies. The City reports its investment s in CAMP at the fair valu e amounts provided by CAMP, which is the same as the value of the pool share in accordance with GASB 79 requirements. On June 30, 2022, the CAMP pool had an average maturity of 28 days and it exempt from the fair value hierarchy.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAI F) 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 maintained by LAIF, which are recorded on an amortized cost basis.

Fair Value Hierarchy
The City categorizes its fair value meas urements within the fair value hierar chy 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 quoted prices in active markets for identical 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, 2022:

Measure by Fair Value
Not Subject to
Fair Value
Hierarchy 1 2 3 Total
Corporate Bonds -$ -$ 92,512,513$ -$ 92,512,513$ Supernationals - - 23,391,788 - 23,391,788
Federal Agency Securities - - 353,226,428 - 353,226,428 Municipal Bond - - 40,230,551 - 40,230,551
Certificates of Deposit 1,235,299 1,235,299
California Asset Management Program - - 76,825,076 - 76,825,076 Money Market Funds 692 - - - 692
Commercial Paper Disc - - 9,762,274 - 9,762,274 State Investment Pool 48,331,063 - - - 48,331,063 US Treasury - - 56,478,385 - 56,478,385 Held by Bond Trustee:

Federal Agency Securities - - 12,122,475 - 12,122,475 Money Market Funds 1,212,148 - - - 1,212,148 Held by Pension Section 115 Trustee:

Mutual Fund - - 11,696,726 - 11,696,726 Deferred Compensation Plan:

Mutual Fund - 99,300,298 225,792,028 - 325,092,326 Total 50,779,202$ 99,300,298$ 902,038,244$ -$ 1,052,117,744$ Level

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 61 (3) Accounts Receivable
As of June 30, 2022, accounts receivable are categorized as follows:

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

Accounts receivable 6,567,393$ 958,689$ 5,145$ 8,396,195$ 46,317$ 15,973,739$ Accrued revenue
receivable 23,425,853 - - 8,708,072 141,889 32,275,813 Interest receivable 265,480 - 1,229 372,277 121,424 760,410 Paramedics receivable 4,123,963 - - - - 4,123,963 Utility receivable 2,237,639 - - 940,492 - 3,178,131 36,620,328 958,689 6,374 18,417,035 309,630 56,312,056 Less: allowance for
uncollectible amounts (2,648,020) - - (195,029) - (2,843,049) Total 33,972,308$ 958,689$ 6,374$ 18,222,006$ 309,630$ 53,469,007$ Non-Major
Light and Off-Street Enterprise
Power Water Parking Funds Total
Business-type Activities:

Accounts receivable 135,690$ 304,418$ 506,821$ 265,716$ 1,212,645$ Accrued revenue
receivable 14,628,663 5,865,928 365,751 1,270,176 22,130,518 Interest receivable 467,244 184,652 35,038 27,909 714,844 Paramedics receivable - - - - - Utility receivable 18,443,090 6,673,422 - 1,560,194 26,676,706 33,674,687 13,028,420 907,611 3,123,995 50,734,713 Less: allowance for
uncollectible amounts (4,663,093) (1,462,370) - (563,395) (6,688,858) Total 29,011,594$ 11,566,050$ 907,611$ 2,560,600$ 44,045,855$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 62 Annual Comprehensive Financial Report | June 30, 2022 (4) Notes Receivable – Primary Government
The
notes receivable in the governmental funds amounted to $102,691,952 at June 30, 2022. $58,023,672 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. $26,31 8,280 consisted of loans that the former redevelopment agency made to assist the devel
opment 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 fund s.

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, 2022, the City has recorded an allowance for uncollectible long-term receivables of $89,186,557.

In January 2009, Light and Po wer utilized $80 million of Reserves for Stranded Investment and in return received Subor
dinated Notes totaled $70 million from Intermountain Power Agency (IPA) to defease so me of IPA’s outstan
ding 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 n
otes as of June 30, 2022 is $1,440,417.
(5) Due to and from Other Funds
Current i
nterfund receivable and payable balances at June 30, 2022 are as follows:

Light and
Due to Other Funds General Fund Power Fund Total
Non-Major Governmental Funds 8, 475,653$ 1,463,031 $ 9,938,684$ Internal Service Funds 30,186,797 - 30,186,797
Total 38,662,450$ 1,463,031$ 40,125,481$
Due From Other Funds
The
above balances are due to short-term payable between 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, 2022 63 (6) Advances to and from Other Funds

Primary Government

Long-term interfund receivable and payable balances at June 30, 2022 are as follows:

Advances to Other funds
Li ght
and Power
Advances from Other funds Fund Total
General Fund 110,000 $ 110,000 $ Total 110,000 $ 110,000 $

Outstanding at
June 30, 2022
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 fiscal year 2013 Capital Improvemen t Program Budget for the repair and/or replacement of existing street lighting syst ems CIP Project. Public Works agreed to repay the loan to PWP in ten equal annual installments of $110,000 each on January 31 of each year starting on January 31, 2014 and ending on January 31, 2023. $ __110,000

Total advances between City funds $ 110,000

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 64 Annual Comprehensive Financial Report | June 30, 2022 (7) Capital Assets
Primary Gover
nment
Capital asset activity for the year ended June 30, 2022 is as follows:

Restated (1)
Balance at Balance at
Governmental Activities: June 30, 2021 Additions Deletions Transfers June 30, 2022 Capital assets not being
depreciated/amortized:

Land 87,336,607$ -$ (370,000)$ 354,989$ 87,321,596$ Construction in progress 22,524,764 23,997,878 - (15,113,989) 31,408,653 Total capital assets not being
depreciated/amortized 109,861,371 23,997,878 (370,000) (14,759,000) 118,730,249 Capital assets being
depreciated/amortized:

Right-to-use leased land -
53,726
- - 53,726
Buildings and improvements 300,494,310 278,921 - 6,950,546
307,723,777
Right-to-use leased buildings 4,351,610 19,079
-
- 4,370,689
Machinery and equipment 91,206,304 1,456,238 (7,750,511) 3,120,534 88,032,565 Right-to-use leased equipment 677,593 37,583 - - 715,176 Infrastructure 328,504,579 - - 4,822,722 333,327,301 Total capital assets being
depreciated/amortized 725,234,396 1,845,547 (7,750,511) 14,893,802 734,223,234 Less accumulated depreciation/amortization:

Right-to-use leased land -
(11,939) - - (11,939)
Buildings and improvements (148,104,293) (5,980,935) - 21,768
(154,063,460)
Right-to-use leased buildings -
(925,125)
(925,125)
Machinery and equipment (54,346,699) (6,765,681) 7,746,249 - (53,366,131)
Right-to-use leased equipment -
(245,454)
(245,454)
Infrastructure (119,483,025) (7,049,993) - - (126,533,018) Total accumulated depreciation/
amortization (321,934,017)
(20,979,127) 7,746,249 21,768 (335,145,127) Total capital assets, being
depreciated/amortized, net 403,300,379 (19,133,580) (4,262) 14,915,570 399,078,107 Governmental activities
capital assets, net 513,161,750$ 4,864,298 $ (374,262) $ 156,570 $ 517,808,356$ (1) The beginning balance was restated to add the right-to-use lease assets due to the implementation of GASB Statement No. 87 , Leases. See Not
e 1X.

During the
year, governmental activities received proceeds of $124,686 from the disposal of capital assets with a net gain of $60,206.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 65 (7) Capital Assets (Continued)

Primary Government (Continued)

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

General Government 4,575,873$
Public Safety 1,787,177
Transportation 1,942,379
Health 155,568
Culture and Leisure 1,428,748
Community Development 6,490,615
Computing and Communication 3,244,347
Building Maintenance 208
Fleet Maintenance 1,345,894
Fleet Repair and Maintenance 8,318
Total 20,979,127$

The following is a summary of governmental activities amount of intangible lease assets by major classes of underlying assets for the fiscal year ended June 30, 2022 as a result of the implementation of GASB 87, Leases.

Governmental Activities:

Lease assets:

Lease land 53,726 $
Less accumulated amortization (11,939)
Lease land, net 41,787
Lease building 4,370,689
Less accumulated amortization (925,125)
Lease building, net 3,445,565
Lease equipment 715,176
Less accumulated amortization (245,454)
Lease equipment, net 469,723
Total lease assets, net 3,957,074 $

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 66 Annual Comprehensive Financial Report | June 30, 2022 (7) Capital Assets (Continued)
Primary Gover
nment (Continued)
Restated (1)
Balance at Balance at
Business-type Activities: June 30, 2021 Additions Deletions Transfers June 30, 2022 Capital assets not being
depreciated/amortized:

Land 14,675,193 $ - $ -$ 9,472$ 14,684,665$ Construction in progress 82,506,094 56,782,535 (33) (57,292,972) 81,995,624 Total nondepreciable assets 97,181,287 56,782,535 (33) (57,283,500) 96,680,289 Capital assets being
depreciated/amortized:

Buildings and improvements 141,995,745 434,835 (1,630,304) 1,489,243 142,289,519 Right-to-use leased buildings 2,642,494 19,079 (422,283) - 2,239,290 Utility lines, machinery and
equipment 1,209,040,360 1,074,675 (12,002,848) 55,496,078 1,253,608,265 Right-to-use leased equipment -
31,631 - - 31,631
Total capital assets being
de
preciated/amortized 1,353,678,599 1,560,220 (14,055,434) 56,985,321 1,398,168,705 Less accumulated depreciation/amortization:

Buildings and improvements (68,070,511) (4,231,461) 1,609,204 - (70,692,768) Right-to-use leased buildings (422,283) (958,228) 422,283 - (958,228) Utility lines, machinery and
equipment (580,454,801) (41,394,579) 11,758,006 (21,768) (610,113,142) Right-to-use leased equipment - (7,100) - - (7,100) Total accumulated
de
preciation/amortization (648,947,595) (46,591,368) 13,789,493 (21,768) (681,771,238) Total capital assets, being
depreciated/amortized, net 704,731,004 (45,031,148) (265,941) 56,963,553 716,397,467 Business-type activites
ca
pital assets, net 801,912,291$ 11,751,386 $ (265,974) $ (319,947) $ 813,077,756$ (1) The beginning balance was restated to add the right-to-use lease assets due to the implementation of GASB Statement No. 87, Leases. See Note 1X.

During the year, business-type activities received proceeds of $99,403 fr om the disposal of capital assets and incurred a
net loss on disposal of $166,537.

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

Electric 33,980,866$
Water 9,863,812
Refuse 642,274
Off-Street Parking 1,935,147
Telecommunications 169,269
Total 46,591,368$

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 67 (7) Capital Assets (Continued)
Primary Government (Continued)
The following
is a summary of business-ty pe activities amount of intangible right-to-use leased assets by major classes of underlying assets for the fiscal year ended June 30, 2022 as a result of the implementation of GASB 87, Leases.

Business-type Activities:

Right-to-use leased assets:

Lease building 2,239,289$
Less accumulated amortization (958,228)
Lease building, net 1,281,061
Lease equi pment 31,631
Less accumulated amortization (7,100)
Lease equi pment, net 24,531
Total right-to-use leased assets 1,305,592 $
Fiduciary Funds – Private-Purpose Trust Fund
Balance at Balance at
Fiduciary Funds June 30, 2021 Additions Deletions June 30, 2022 Capital assets not depreciated/amortized:

Land 214,261$ -$ -$ 214,261$
Total cost of assets not depreciated/
amortized 214,261 - - 214,261
Capital assets, net 214,261$ -$ -$ 214,261$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 68 Annual Comprehensive Financial Report | June 30, 2022 (8) Leases
A lease is defined as a contractual agreement that conveys co ntrol of the right to use another entity’s nonfinancial asset, for a minimum contractual period of greater than one year, in an exchange-like transaction.

In
fiscal year 2022, the City adopted Statement No. 87, Leases, issued by the Government al Accounting Standard Board (G
ASB). This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. In a ccordance with the statement, parties to a lease agreement, the lessee and lessor, are required to recognize a lease liability and an intangible right-to-use lease asset, and a lease receivable and deferred inflow of resources, respectively.

City as
Lessor
The City is a lessor of land and building nonfinancial assets. The City recognizes a lease receivable and a deferred inflow of resources in the
government-wide and governmental fund financial statements.

At the
commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payme
nts received at or before the lease commencement date.

The following are key estimates and judgments how the City determines the discount rate on the expected lease receipts to
present value, lease term, and lease receipts:
• The City uses its estimated incremental borr
owing rate as the discount rate for leases
• The lease term includes the noncancellable period of the lase. Lease receipts included in the measurement of the lease receivable is composed
of fixed payments from the lessee.

As lessor, the City recognized
twelve lease agreements subject to GASB 87, Leases, at the beginning of the fiscal year.

During the fiscal year, the City entered into one lease agreement. The lease terms range from 18 to 120 months for the right to use land, land improvements, buildings, and infrastructure. Most of these leases include periodic adjustments to the lease amounts at determined intervals. The fixed monthly lease payment ranges from $1,340 to $51,156, with the incremental borrowing rate ranging from 0.185% to 1.040%. For the year ended June 30, 2022 the City received an immaterial amount of variable and other payments from these lease arrangements.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certai n changes occur that are expected to significantly affect the amount of the lease receivable.

Changes in lease receivable for the year ended June 30, 2022 are as follows:

Restated (1)
Balance at Balance at
June 30, 2021 Additions Reductions June 30, 2022 Governmental Activities:

Lease receivable 3,124,989$ - $
(687,493)$
2,437,496$
Deferred inflow of resources 3,124,990 -
(741,905)
2,383,085
Business-type Activities:

Lease receivable 1,314,728 364,695 (379,832) 1,299,591 Deferred inflow of resources 1,314,728 364,695 (391,611) 1,287,812 (1) The beginning balance was restated to add the lease receivable due to the implementation of GASB Statement No. 87, Leases.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 69 (8) Leases (Continued)

City as Lessor (Continued)

During the year ended June 30, 2022, the City recognized the lease revenues and interest revenues as follows:

Governmental Business-type
Activities Activities
Amortization of deferred inflow of resources 741,905$ 391,611$ Short-term rental revenues 4,040,123 -
Total lease revenues 4,782,028$ 391,611$
Lease interest revenues 8,606$ 6,904$

City as Lessee

The City is a lessee of nonfinancial assets such as land, buildings, and equipment. The City recognizes a lease liability and intangible right-to-use lease assets in the governme nt-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $10,000 or more.

At the commencement of a lease, the Ci ty initially measures the lease liabilit y at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its usef ul life, which is the shorter of the leased asset’s useful life for the lease term.

The following are key estimates and judgements on how the City determines its discount rate on the expected lease payments to present value, lease term, and lease payments:

• The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payment and purchase option price that the City is reasonably certain to exercise.

As lessee, the City recognized ten le ase agreements subject to GASB 87, Leases, at the beginning of the fiscal year.

During the fiscal year, the City entered into five lease agreements. The lease terms range from 9 to 108 months for the right to use buildings and equipment. Most of these leases include periodic adjustments to the lease amounts at determined intervals. The fixed monthly lease paym ent ranges from $417 to $68,878 with the incremental borrowing rate ranging from 0.165% to 1.530%. For the year ended June 30, 2022 the City paid an immaterial amount of variable and other payments from these lease arrangements.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are ex pected to significantly affect the amount of the lease liability.

Right-to-use leased assets are reported with capital assets (see Note 7); lease liabilities are reported with long-term debt and other liabilities (see Note 10).

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 70 Annual Comprehensive Financial Report | June 30, 2022 (8) Leases (Continued)
City
as Lessee (Continued)
Changes in lease asset and lease liability for the year ended June 30, 2022 are as follows:

Restated (1)
Balance at Balance at
June 30, 2021 Additions Reductions June 30, 2022
Governmental Activities:

Lease assets
Ri ght-to-us e land - $
53,726$ -$ 53,726$
Right-to-use buildings 4,351,610 19,079 - 4,370,689 R
i ght-to-us e equipment 677,593 37,583 - 715,176 Total lease assets 5,029,203 110,388 - 5,139,591 A
ccumulated amortization -
(1,182,518)
- (1,182,518)
T otal le ase asse ts, ne t 5,029,203$ (1,072,130)$ -$ 3,957,073$ Lease liability 5,029,203$ 110,313$ (1,115,633)$ 4,023,883$ Business-type Activities:

Lease assets
Right-to-use buildings 2,642,494$ 19,079$ (422,283)$ 2,239,290$ Ri ght-to-us e equipment - 3
1,630 -
31,630
T otal le ase asse ts 2,642,494 50,709 (422,283) 2,270,920 Accumulated amortization -
(1,387,611) 422,
283 (965,328)
T otal le ase asse ts, ne t 2,642,494$ (1,336,902)$ -$ 1,305,592$ Lease liability 2,642,494$ 50,709$ (1,316,720)$ 1,376,483$ (1) The beginning balance was restated to add the lease receivable due to the implementation of GASB Statement No. 87, Leases.

During the year ended June 30, 2022, the City recognized the lease expenses and interest expenses as follows:

Governmental Business-type
Activities Activities
Amortization of lease assets 1,182,517 $ 1,387,611 $ Other l ease (non-GASB 87) expens es 939,341 451,872 Total lease expenses 2,121,858$ 1,839,483$
Lease i nterest expenses 32,148$ 3,872$
Other l ease (non-GASB 87) i nteres t expenses 93,604 60,660 Total l ease i nterst expenses 125,752$ 64,532$ As of J
une 30, 2022, the City had minimum principal and inte rest payment requirements for its leasing activities with a remaining term in excess of one year, as follows:

Lease Payable Principal and Interest Requirements to Maturity Fiscal Year Principal Interest Total Payments
2023 1,906,864 $ 106,915 $ 2,027,160 $
2024 1,723,156 86,300 1,809,457
2025 1,475,276 65,771 1,541,047
2026 1,470,482 45,286 1,515,768
2027 1,435,060 24,517 1,459,577
2028 - 2031 949,755 15,177 1,008,491
Fiscal Year Principal Interest Total Payments
2023 1,428,080$ 50,389$ 1,478,468$
2024 885,398 36,267 921,664
2025 492,809 23,237 516,047
2026 502,448 10,085 512,533
Governmental Activities
Business-type Activities
See more infor
mation for lease liability (City as lessee) in the long-term liabilities in Note 10.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 71 (9) Deferred Inflows and Outflows

Primary Government

Deferred outflows on the government-wide statement of net position consists of the following at June 30, 2022:

Govermental Activities Balance at Balance at
June 30, 2021 Increase Decrease June 30, 2022 0
2015A Refunding COP Deferred Charges 4,090,929$ -$ (246,689)$ 3,844,240$ 2020A Refunding POB Deferred Charges 12,273,658 - (514,979) 11,758,679 2020B Refunding POB Deferred Charges 5,920,718 - (351,726) 5,568,992 GASB 68 Contribution Subsequent to Measurement Date 51,421,992 54,426,047 (51,421,992) 54,426,047 GASB 68 Net Difference on Pension Plan Investments 9,891,122 - (9,891,122) - GASB 68 Change of Assumptions 8,964,309 2,068,688 (8,964,309) 2,068,688 GASB 68 Difference in Experience 5,762,033 3,795,493 (5,762,033) 3,795,493 GASB 75 Net Difference on Pension Plan Investments - 172,656 - 172,656 GASB 75 Change of Assumptions 11,187,954 8,320,875 (11,187,954) 8,320,875 GASB 75 Difference in Experience - 629,084 - 629,084 GASB 68 FPRS Net Difference on Pension Plan Investments - 6,359,000 - 6,359,000 109,512,715$ 75,771,843$ (88,340,804)$ 96,943,754$

Business-type Activities Balance at Balance at
June 30, 2021 Increase Decrease June 30, 2022
1998 Electric Bonds Deferred Charges 216,928$ -$ (108,464)$ 108,464$ 2008 Electric Bonds Deferred Charges 855,561 - (53,475) 802,086 2003 Water Bonds Deferred Charges 132,323 - (66,161) 66,162 GASB 68 Contribution Subsequent to Measurement Date 11,373,463 11,375,259 (11,373,463) 11,375,259 GASB 68 Net Difference on Pension Plan Investments 2,132,880 - (2,132,880) - GASB 68 Difference in Experience 659,296 181,628 (659,296) 181,628 GASB 75 Net Difference on Pension Plan Investments - 43,285 - 43,285 GASB 75 Change of Assumptions 2,921,224 2,086,078 (2,921,224) 2,086,078 GASB 75 Difference in Experience - 157,716 - 157,716 18,291,675$ 13,843,966$ (17,314,963)$ 14,820,678$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 72 Annual Comprehensive Financial Report | June 30, 2022 (9) Deferred Inflows and Outflows (Continued)
Deferred inflows on the government-wide statement of net position consists of the following at June 30, 2022:

Governmental Activities
Balance at Balance at
June 30, 2021 Increase Decrease June 30, 2022
GASB 68 Change of Assumptions 1,184,883 $ 243,960$ (1,184,883)$ 243,960$ GASB 68 Difference in Experience 4,075,060 2,808,521 (4,075,060) 2,808,521 GASB 68 Net Difference on Pension Plan Investments -
129,606,843
- 129,606,843
GASB 75 Change of Assumptions 156,707 19,124,031 (156,707) 19,124,031 G
ASB 75 Difference in Experience 3,994,348 2,766,957 (3,994,348) 2,766,957 GASB 75 Differences between projected and actual
earnings on OPEB plan investments 136,284 -
(136,284) -
GASB 87 Lease Related -
2,383,085
- 2,383,085
G
ASB 68 FPRS Net Difference in Experience 10,243,000 - (10,243,000) -
19,790,282$ 156,933,397$ (19,790,282)$ 156,933,397$ Business-type Activities Balance at Balance at
June 30, 2021 Increase Decrease June 30, 2022
2019 Electric Bonds Deferred Gain 617,000 $ - $ (200,110)$ 416,890$
2021 Water Bonds Deferred Gain - 1,716,307
(87,059) 1,629,248
GASB 68 Change of Assumptions 310,008 -
(310,008)
-
G
ASB 68 Difference in Experience 945,356 942,088 (945,356)
942,088
GASB 68 Net Difference on Pension Plan Investments -
27,781,068 -
27,781,068
G
ASB 75 Change of Assumptions 40,917
4,794,476
(40,917) 4,794,476
G
ASB 75 Difference in Experience 1,042,943 693,688 (1,042,943) 693,688 GASB 75 Di fferences between projected and actual
earnings on OPEB plan investments 35,584
-
(35,584) -
G
ASB 87 Lease Related -
1,287,812
-
1,287,812
2 ,991,808$ 37,215,439$ (2,661,977)$ 37,545,270$ Deferred i
nflows on the governmental funds consists of the following at June 30, 2022:

General Project Non-Major Total
Fund Management Governmental Governmental
Unavailable Revenues 2,286,400$ 931,321$ 9,067,520$ 12,285,241$ GASB 87 Lease Related 611,783 - 9
60,333 1,572,116
2,898,183$ 931,321$ 10,027,853$ 13,857,357$
In a
ccordance with GASB Statement No. 65 revenue reco gnition requirements, the fo llowing revenues have been deferred, because the related cash was not available at year-end. The breakdown by fund is as follows:

Fund Name Amount
General Fund 2,286,400$
Health 2,369,133
Building Services 34,917
Air Quality Improvement 47,791
Public Safety 88,460
Transportation 40,107
Housing and Community Development 6,487,112
Project Management 931,321
Total unavailable revenues 12,285,241$

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 73 (10) Long-Term Debt and Other Liabilities
Primary Government
Changes in long-term debt and other liabilities for the year ended June 30, 2022 are as follows:

Restated (1) Due in
Balance at Balance at Due Within More Than
Governmental Activities: June 30, 2021 Additions Reductions June 30, 2022 One Year One Year Notes payable:

Notes from Direct Borrowings
(Rose Bowl) 455,325$ -$ (16,495)$ 438,830$ 16,842$ 421,988$ Section 108 4,500,000 - (300,000) 4,200,000 300,000 3,900,000 Total Notes Payable 4,955,325 - (316,495) 4,638,830 316,842 4,321,988 Pension bonds:
2015 Taxable Pension Obligation Bonds 5,955,000 - (1,075,000) 4,880,000 1,340,000 3,540,000 Bond Premiums/(Discount) (64,282) - 16,769 (47,513) - (47,513) 2020 Taxable Pension Obligation Bonds 128,995,000 - (995,000) 128,000,000 1,015,000 126,985,000 Total Pension Bonds 134,885,718 - (2,053,231) 132,832,487 2,355,000 130,477,487 Certificates of participation:
2015 COP Series A Refunding 2008 COP 48,855,000 - (2,090,000) 46,765,000 2,195,000 44,570,000 Bond Premiums/(Discount) 4,364,542 - (263,189) 4,101,353 - 4,101,353 53,219,542 - (2,353,189) 50,866,353 2,195,000 48,671,353 5,876,051 - (939,341) 4,936,710 954,989 3,981,721 Total Certificates of Participation
Loan payable
Other:

Net pension liability 422,146,077 - (170,097,010) 252,049,067 - 252,049,067 Net OPEB liability 74,191,917 - (16,278,538) 57,913,379 - 57,913,379 Compensated absences 12,976,087 10,566,761 (11,355,797) 12,187,051 11,355,797 831,254 Insurance claims payable 42,044,193 64,785,235 (30,676,795) 76,152,633 34,307,683 41,844,950 Lease liability 5,029,130 110,388 (1,115,635) 4,023,883 951,875 3,072,008 Total governmental activity long-
term liabilities 755,324,040$ 75,462,384$ (235,186,031)$ 595,600,393$ 52,437,186$ 543,163,207$ (1) Previously presented as notes for lo ng-term debt, this note now includes other long-term liabilities. The beginning balance was restated to include net pension liability, net OPEB liability, and lease liability.

Internal service funds predominately serv e the governm ental funds. Therefore, lo ng-term liabilities for internal service funds are included in the above totals for governmental activities. Compensated absences, pension and OPEB liabilities for governmental activities are generally liquidated by (1) the fund where the accrued liability occurred and (2) the Benefits and Insurance internal service fund. Lease liabilities are liquidated by the lessee fund, i.e., the fund with the activity that is utilizing the right-to-use leased assets.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 74 Annual Comprehensive Financial Report | June 30, 2022 (10) Long-Term Debt and Ot her Liabilities (Continued)
Primary Government (Continued)
Restated (1) Due in
Balance at Balance at Due Within More Than
Business-type Activities: June 30, 2021 Additions Reductions June 30, 2022 One Year One Year Revenue bonds:
2011A Water Revenue Refunding Bonds 13,855,000$ - $ (13,855,000)$ -$ -$ -$
2012A Electric Revenue Refunding Bonds 3,835,000 - (3,835,000) - - -
2013A Electric Revenue Refunding Bonds 72,600,000 - (5,140,000) 67,460,000 2,015,000 65,445,000
2016A Electric Revenue Refunding Bonds 108,750,000 - (3,015,000) 105,735,000 3,170,000 102,565,000
2017A Water Revenue Refunding Bonds 12,540,000 - (580,000) 11,960,000 610,000 11,350,000 2019A Electric Revenue Refunding Bonds 8,370,000 - (1,940,000) 6,430,000 2,040,000 4,390,000
2020A Water Revenue Refunding Bonds 29,310,000 - (930,000) 28,380,000 965,000 27,415,000 2021A Water Revenue Refunding Bonds - 22,480,000
(155,000) 22,325,000 1,150,000 21,175,000
Total Water and Power revenue bonds 249,260,000 22,480,000 (29,450,000) 242,290,000 9,950,000 232,340,000 2008 Paseo Colorado Taxable Revenue Bonds 21,200,000 - (800,000) 20,400,000 900,000 19,500,000 Bond Premiums/(Discounts) 35,993,348 6,256,610 (3,657,693) 38,592,264 - 38,592,264 T
otal revenue bonds 306,453,348 28,736,610 (33,907,693) 301,282,264 10,850,000 290,432,264 Loan payable 2,384,123 - (451,872) 1,932,251 464,017 1,468,233 Other:

Net pension liability 91,263,075 - (40,988,472) 50,274,603 - 50,274,603 Ne
t OPEB liability 19,371,840 - (4,852,710) 14,51
9,130 - 14,519,130
L
ease liability 2,642,494 50,710 (1,316,721) 1,37 6,483 964,062 412,421
T
otal business-type activity long-term
liabilities 422,114,880$ 28,787,320$ (81,517,468)$ 369,384,731$ 12,278,079$ 357,106,652$ (1) Previously presented as notes for lo ng-term debt, this note now includes other long-term liabilities. The beginning balance was restated to include net pension liability, net OPEB liability, and lease liability.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 75 (10) Long-Term Debt and Ot her Liabilities (Continued)
Discretely Presented Component Units
Changes in discretely presented component units’ long-term debt and other liabilities for the year ended June 30, 2022 are as follows:

Re state d (1) A ddit ions Due in
Balance at Including Balance at Due Within More Than
Discretely Presented Component Units June 30, 2021 Accretion Reductions June 30, 2022 One Year One Year Ce rt ificate s of participation:
2006 COP (Conference Center Project), net of
interest accretion 10,556,153$ 512,288$ (5,490,000)$ 5,578,441$ 5,578,441$ - $ 2008 Refunding COP Series 2008A
(Conference Center Project) 134,720,000 - - 134,720,000 - 134,720,000 Tot al Ce rtificate s of Participation 145,276,153 512,288 (5,490,000) 140,298,441 5,578,441 134,720,000 Revenue Bonds:
2010A Revenue Bonds-Tax Exempt 23,282,536 1,583,125 - 24,865,661 - 24,865,661 2010B Re ve nue Bonds-Taxable Build A m e rica
Bonds 106,660,000 - - 106,660,000 - 106,660,000 2010D Revenue Bonds-Taxable Recovery 7,400,000 - - 7,400,000 - 7,400,000 2016A Revenue Bonds-Partial Refunding 2010A
Bonds 21,865,000 - (1,980,000) 19,885,000 2,255,000 17,630,000 2016A Bond Premium (Discount) 3,163,665 - (550,203) 2,613,462 - 2,613,462 2018A Revenue Bonds-Refunding 30,585,000 - - 30,585,000 - 30,585,000 2018B Revenue Bonds-Taxable 9,405,000 - (1,865,000) 7,540,000 2,155,000 5,385,000 2018AB Bond Premium/(Discount) 4,022,036 - (178,323) 3,843,713 - 3,843,713 206,383,236 1,583,125 (4,573,525) 203,392,836 4,410,000 198,982,836 2,996,766 - (1,606,718) 1,390,048 - 1,390,048 10,763,262 - 10,763,262 - 10,763,262
700,000 - (100,000) 600,000 100,000 500,000 480,759 - (305,562) 175,197 175,197 -
621,224 - (51,769) 569,455 51,769 517,686
562,432 592,767 (395,896) 759,304 573,434 185,870 Total Revenue Bonds (Rose Bowl Renovation)
Net pension liability
Deriva tive Instrument liabili ty
Long term debt advance
Energy Conservation Loan
Loan payable
Compensated absences
Lease l iability - 334,777 (27,735) 307,042 216,521 90,521 Total discretely presented component
unit s long-te rm liabilitie s 367,783,833$ 3,022,958 $ (12,551,205)$ 358,255,585$ 11,105,362 $ 347,150,223$ (1
) Previously presented as notes for lo ng-term debt, this note now includes other long-term liabilities. The beginning balance was restated to include net pension liability, derivative instrument liability. long term debt advance and lease liability.

Fid
uciary Funds – Private-Purpose Trust Fund
Due in
Balance at Balance at Due within More than
June 30, 2021 Additions Reductions June 30, 2022 One Year One Year Tax allocation bond:
2006 Tax Allocation Refunding Bonds (Fair Oaks) 225,000$ - $ (225,000) $ -$ -$ -$ Total Successor Agency to
PCDC long-term liabilities 225,000$ -$ (225,000) $ -$ -$ -$ Successor Agency to Pasadena
Community Development Commission
(PCDC):

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 76 Annual Comprehensive Financial Report | June 30, 2022 (10) Long-Term Debt and Ot her Liabilities (Continued)
Detail of Long-Term Debt
Governmental Activities:

Final
Principal
Issue Original Coupon Payment Outstanding at
Date Purpose Amount Interest Rate Date June 30, 2022
Notes payable
Notes Payable-RBOC 1/15/2013 a 575,642$ 2.10% 1/7/2043 438,830$ Notes Payable-Section 108 10/29/2015 c 6,000,000 variable 8/1/2035 4,200,000 Total Notes Payable 4,638,830
Pension bonds:
2015 Unrefunded Taxable Pension Obligation
Bonds 5/5/2015 b 119,460,000$ 2.824% to 3.465% 5/1/2025 4,880,000 2020 Taxable Pension Obligation Bonds 2/26/2020 b 131,805,000 1.601% to 3.097% 5/1/2045 128,000,000 Bond Premium (Discount) (47,513)
Total Pension Bonds 132,832,487
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 46,765,000 Bond Premium (Discount) 4,101,353
50,866,353 Total Certificates of Participation
Loan payable:
2020 Equipment Lease-Radio Equipment 1/15/2020 e 6,800,000 1.659% 1/15/2027 4,936,710 Total governmental activities long-term debt 193,274,380$ Business-
type Activities:

Final
Principal
Issue Original Coupon Payment Outstanding at
Date Purpose Amount Interest Rate Date June 30, 2022
Revenue bonds:
2008 Paseo Colorado Taxable Revenue Bonds 9/17/2008 f 28,800,000 variable 6/1/2038 20,400,000$ 2013A Electric Revenue Refunding Bonds 12/3/2013 j, k 80,485,000 4.25% to 5.0% 6/1/2043 67,460,000 2016A Electric Revenue Refunding Bonds 11/7/2016 l 119,440,000 4.0% to 5.0% 6/1/2046 105,735,000 2017A Water Revenue Refunding Bonds 3/13/2017 m 15,395,000 5.000% 6/1/2036 11,960,000 2019A Electric Revenue/ Refunding Bonds 8/1/2019 n 11,575,000 5.000% 8/1/2024 6,430,000 2020A Water Revenue Refunding Bonds 12/1/2020 h 30,130,000 5.000% 6/1/2050 28,380,000 2021A Water Revenue Refunding Bonds 12/1/2021 i 22,480,000 5.000% 6/1/2051 22,325,000 Bond Premiums (Discounts) 38,592,264
Total Revenue Bonds 301,282,264
Loan payable:
2019 Equipment Lease-Parking System 4/1/2019 e 3,252,694 2.670% 4/1/2026 1,932,251 Total business-type activities long-term debt 303,214,515$

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 77 (10) Long-Term Debt and Ot her Liabilities (Continued)

Detail of Long-Term Debt (Continued)

Component Unit Activities:

Final
Principal
Issue Original Coupon Payment Outstanding at
Date Purpose Amount Interest Rate Date June 30, 2022
Certificates of Participation:
2006 COP (Conference Center Project) 8/23/2006 CC1 27,139,972 $ 3.85% to 4.81% 2/1/2023 5,578,441 $ 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) 140,298,441
Revenue Bonds:
2010A Revenue Bonds-Tax Exempt Capital Appreciation 11/18/2010 RB1 11,588,265 6.43% to 6.52% 3/1/2033 24,865,661
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 19,885,000 2016A Bond Premium (Discount) 2,613,462
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 7,540,000 2018 AB Bond Premium (Discount) 3,843,713
Total Revenue Bonds (RBOC) 203,392,836
Total component unit activities long-term debt 343,691,277$

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 2011A Water Revenue Bonds and Capital Improvements to Water System 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:

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 78 Annual Comprehensive Financial Report | June 30, 2022 (10) Long-Term Debt and Other Liabilities (Continued)
The annual requirements to
amortize as of June 30, 2022 are as follows:

Governmental Activities:

Year Ending
June 30 Principal Interest Principal Interest Principal Interest 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 318,302 99,646 3,370,000 3,620,211 2,670,000 1,627,150 2028-2032 1,597,437 357,389 18,030,000 16,928,162 15,480,000 5,996,000 2033-2037 1,308,107 104,769 24,555,000 14,145,954 15,015,000 2,797,275 2038-2042 119,945 10,341 43,255,000 9,746,219 4,130,000 165,200 2043-2047 25,521 536 32,390,000 2,119,264 - - Bond Premium/(Discount) - - (47,513) 4,101,353 - Total Payment 4,638,830$ 1,056,470$ 132,832,487$ 61,774,931$ 50,866,353$ 18,306,975$ Pension BondsNotes Payabl e Certificates of Participation Year Ending
June 30
2023 954,989$ 77,956$
2024 970,898 62,047
2025 987,072 45,873
2026 1,003,516 29,429
2027 1,020,233 12,712
Total Payment 4,936,710$ 228,016$
Loan Payable
Principal Interest
Business-type Activities:

Year Ending
June 30 Principal Interest
2023 10,850,000$ 11,670,875$ 464,017$ 48,514$ 2024 11,180,000 11,168,500 476,489 36,042
2025 11,705,000 10,649,750 489,297 23,235
2026 9,810,000 10,168,125 502,448 10,085
2027 10,175,000 9,725,125 - -
2028-2032 58,265,000 41,304,625 - -
2033-2037 67,280,000 27,383,550 - -
2038-2042 49,730,000 14,079,850 - -
2043-2047 28,875,000 4,167,500 - -
2048-2052 4,820,000 564,750 - -
Bond Premium (Discount) 38,592,264 - - -
Total Payment 301,282,264$ 140,882,650$ 1,932,251$ 117,877$ Loan Payable
Principal Interest
Revenue Bonds

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 79 (10) Long-Term Debt and Ot her Liabilities (Continued)

New Debt Issued in Fiscal Year Ended June 30, 2022

2021A Water Revenue Refunding Bonds

On December 1, 2021, the City issued the Water Revenu e/Refunding Bonds, Series 2021A (2021A Revenue Bonds) in the amount of $22,480,000 to refund the 2011A Water Revenue Bonds, finance the costs of acquisition and construction of certain capital improvements to the Water System, make an additional deposit to the Parity Reserve Fund and pay the costs of issuance of the 2021A Revenue Bonds. The rate of interest is 5.00% payable semi-annually on December 1 and June 1 of each year, commencing June 1, 2022. Principal is payable in annual installments ranging from $155,000 to $1,345,000 commencing June 1, 2022 and ending June 1, 2051. The City realized debt service savings of $1.97 million and a present va lue savings of $1.86 million. The true interest cost of the financing was

2.38%.

Disclosure Related to Long-Term Debt under GASB 88

The City’s outstanding notes from direct borrowings related to government activities of $438,830 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 regard 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 immediately 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.

In regard 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.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 80 Annual Comprehensive Financial Report | June 30, 2022 (10) Long-Term Debt and Ot her Liabilities (Continued)
Disclo
sure Related to Long-Term Debt under GASB 88 (Continued) 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 Sublease 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 assign ee may have received in previous years or may receive thereafter in subsequent 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, brought 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 ti me, 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 damage 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 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.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 81 (10) Long-Term Debt and Ot her Liabilities (Continued)
Disclo
sure Related to Long-Term Debt under GASB 88 (Continued) 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 ex tension 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) th
e City will abandon or vacate the Leased Property or any portion thereof (except as permitted by th e 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.

In regard to the Paseo Colorado Revenue Bonds 2008 Series, the City’s outstanding Lease Revenue bonds from public offering related to business-type parking activities are payable from and secured by revenue received by the City. In relation 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:

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 remove all persons in possession 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 Angeles, 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 accordance with the provisions contained in the Lease.

Neither 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 operate to terminate the Lease , and no termination of the Lease on account of default by the City will be or become effective by operation 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.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 82 Annual Comprehensive Financial Report | June 30, 2022 (10) Long-Term Debt and Ot her Liabilities (Continued)
Disclo
sure Related to Long-Term Debt under GASB 88 (Continued) Without termination the Lease, (i) to collect each installment of rent as it becomes due and enforce any ot her term or provision of the Lea
se 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 th
e 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 th at results t
herefrom; 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 accelerati on), notwithst
anding the fact that the Authority may have received in previous years or may receive thereafter in subsequent years rental in excess of the rental specified in the Lease and notwithstanding any entry or re-entry by the A
uthority or suit in unlawful detainer, or otherwise, brought by the Authority for the purpose of effecting s uch reentr
y or obtaining possession of the Lease Premises.

Sho
uld 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, fo r use as public off-str eet vehicular parking fac ility upon such terms and con
ditions 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 harmless the Authority from any costs, loss or damage whatsoever arising out of, in connection with ,
or incid
ent 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, th
at any such re-entry upon and re-letting of the Leased Premises its subject to the provisions of th e Develo
pment Agreements.

The City a
grees that the terms of the Lease constitute full and sufficient notice of the right 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 the Authority in effecting such re-letting will constitute a surr ender or termination
o
f the Lease irrespective of the use or the term for which su ch re-letting or otherwise, but that, on the contrary, in the event of such default by th e City the right to terminate the Lease will vest in the Auth ority to be effected in the sole a
nd 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 comp ensation to the Authority for its services in re-letting 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 pa rt thereof in conditions for re-letting immediately upon notice to the City of the completion and installation of such additions or alterations.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 83 (10) Long-Term Debt and Ot her Liabilities (Continued)

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

The City waives any and all claims for damages caused or which may be caused by the Authority in re-entering and taking possession of the Lease Premises as provided in the Lease and all claims for damages that may result from the destruction of or injury to the Leased Premis es and all claims for damages to or loss of any property belonging to the City, or any other person, that may be in or upon the Lease Premises.

Each and all of the remedies given to the Authority under the Lease or by any law enacted are cumulative and the exercise of one right or remedy will not impair the right of the Authority to any or all other remedies, provided, however, that the Lease Premises continue to be operated and maintained as public off-street vehicular parking facility, subject to the provisions of the Development Agreement. The term “re-let” or “re-letting” as used in the Lease include, but not be limited to re-letting by means of the operation of the Leased Premises by the Authority.

If any statute or rule of law validly limits the remedies given to the Authority under the Lease, the Authority nevertheless will be entitled to whatever remedies are allowable under any statute or rule of law.

In the event the Authority prevails in any action brought to enforce any of the terms and provisions of the Lease, the City agrees to pay a reasonable amount as and for at torney’s fees incurred by the Authority to enforce any of the remedies available to the Authority under the Lease, whether or not a lawsuit has been filed and whether or not any lawsuit culminates in a judgment.

(c) If (1) the City’s interest in the Lease or any part thereof be assigned or transferred without the written consent of the Authority, wither voluntarily or by operation of law or otherwise, or if (2) any proceeding under the United States Bankruptcy Code or any federal or state bankruptcy, insolvency or similar law or any law providing for the appointment of a receiver, liquidator, trustee or similar official of the City or all or substantially all of its assets is instituted by or with the consent of the City, or it instituted with its consent and is not permanently stayed or dismissed within sixty days, or it the City offers to the City’s’ creditors to effect a composition or extension of time to pay the City’s debts, or asks, seeks or prays for reorganization or to effect a plan of reorganization or for readjustment of the City’s debts, or if the City makes a general assignment or any assignment for the benefit of the City’s creditors, or if (3) the City will abandon or vacate any part of the Leased Premises, then the City will be deemed to be default under the Lease.

In regard to the City’s outstanding bonds from public offerings related to business-type, activities (2017A, 2020A and 2021A Water Revenue Bonds and 2013A, 2016A and 2019A Electric Revenue Bonds) are payable from and secured by revenue received by the Utilities (Water and Power Funds).

In relation to the Electric Revenue Bonds course of action in case of the City’s default, the following is the course of action:

Upon the concurrence and continuation of and Event of Default the Bond Owners’ Committee or, if there is none, the Owners of 25% in aggregate Bond Obligation of Bonds then Outstanding may, by written notice to the City, declare the entire unpaid principal of the Bonds due and payable and, thereupon the entire unpaid principal of the Bonds will forthwith become due and payable. Upon any such declaration the City will forthwith pay to the Owners of the Bonds the entire unpaid principal of, premium, pledged for such purpose.

If at any time after such a declaration and before the entry of a final judgement or decree in any suit, action or proceeding instituted on account of such default or before the completion of the enforcement of any other remedy under the Fiscal Agent Agreement, the principal of all Bonds that have matured or been called for redemption pursuant to any sinking fund provision and all arrears of interest have been paid and any other Events of Default which may have occurred have been remedied, then the Bonds Owners’ Committee or, if there is none, the Owners of 25% in aggregate Bonds Obligation of Bond then Outstanding may, by written notice of the City, rescind of annual such declaration and its consequences. No such rescission or annulment will extend to or affe ct any subsequent default or impair any right consequent thereon.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 84 Annual Comprehensive Financial Report | June 30, 2022 (10) Long-Term Debt and Ot her Liabilities (Continued)
Disclo
sure Related to Long-Term Debt under GASB 88 (Continued) In relation to the Water Revenue Bonds course of action in case of the City’s default, the following is the course of action:

Application
of Pledged Revenues and Other Funds after Default; Acceleration. If an Event of Default shall occur and be continuing, the City shall immediately transfer to the Trustee all Pledged Revenues held by it and received thereafter and the Trustee shall apply all Pledged Revenues and any other funds then held or thereafter received by the Trustee under any of the provisions of the Indenture (except as otherwise provided in the Indenture) as follows and in the following orde
r:
(1) To t
he payment of any expenses necessary in the opinion of the Trustee to protect the interests of the Owners of the
Bonds and Parity Debt, including the costs and expenses of the Trustee and the Bondholders in declaring such Event of Default, and payment of reasonable fees and expenses of the Trustee (including reasonable fees and disbursements of its counsel and other agents) incurred in and about the performance of its powers and duties under the Inde
nture;
(2) To the
payment of the whole amount of Bond Obli gation then due on the Bonds and Parity Debt (upon presentation of the Bonds and Parity Debt to be paid, and stamping thereon of the payment if only partially paid, or surrender thereof if fully paid) subject to the provisions of the Indenture, with interest on such Bond Obligation at the rate or rates of interest borne by the respective Bonds and Parity Debt, to the payment to the persons entitled thereto of all installments of interest then due and the unpaid principal or Redemption Price of any Bonds and Parity Debt which shall have become due, whether at maturity or by call for redemption, in the order of their due dates, with interest on the overdue Bond Obligation and Parity Debt at the rate borne by the respective Bonds and Parity Debt, and, if the amount available shall not be sufficient to pay in full all the Bonds and Parity
Debt
due on any date, together with such interest, th en to the payment thereof ratably, according to the amounts of principal or interest or Accreted Value (plus accrued interest) due on such date to the persons entitled thereto, without any discrimination or preference; and
(3) To the extent not paid pursuant to clause (1) or (2) above, to any Credit Provider any amounts then due and owing.

In e
ach and every such case during the continuance of such Event of Default, the Owners of not less than a majority in aggregate amount of Bond Obligation of the Bonds at the time Outstanding shall be entitled, upon notice in writing to the City, to declare the principal of all of the Bonds then Outstanding, and the interest accrued thereon, to be due and payable immediately, and upon any such declaration th e same shall become and shall be immediately due and payable, anything in the Indenture or in the Bonds contained to the contrary notwithstanding.

This provision, however, is subject to the condition that if, at any time after the principal of the Bonds shall have been so declared due and payable, the City shall pay to or shall deposit with the Trustee a sum sufficient to pay all principal on such Bonds matured prior to such declaration and all matured installments of interest (if any) upon all the Bonds, and the reasonable fees and expenses of the Trustee, and any and all other defaults known to the Trustee (other than in the payment of principal of and interest on the Bonds due and payable solely by reason of such declaration) shall have been made good or cured to the satisfaction of the Trustee, or provision deemed by the Trustee to be adequate shall have been made therefor, then, and in every such case, the Owners of not less than a majority in aggregate amount of Bond Obligation of the Bonds at the time Outsta nding, by written notice to the City and to the Trustee, may, on behalf of the Owners of all the Bonds, rescind and annul such declaration and its consequences; but no such rescission and annulment shall extend to or shall affect any subsequent default, or shall impair or exhaust any right or power consequent thereon.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 85 (10) Long-Term Debt and Ot her Liabilities (Continued)
Disclo
sure Related to Long-Term Debt under GASB 88 (Continued) In regard to the Discretely Presented Component Units as it relates to the Rose Bowl Lease Revenue Bonds series, 20 10ABD, 2016A, and 2018AB in case of default, the following is the course of action:

Upon
the happening of any of the events & default, then it shall be lawful for the Authority or its assignee, subject to the t
erms of the Lease, with the consent of the Majority Holder, to (i) exercise any and all remedies available or grante
d to it under the Sublease or pursuant to law, to the extent not inconsistent with the remedies granted under the
Sublease or (ii) by mandamus or other suit, action or proceeding at law or in equity to enforce the Authority’s or its assignee’s rights against the City and to compel the City to perform and carry out its duties and obligations under the law and its covenants and agreements with the City as provided in the Sublease. Upon the breach of an y agreem
ent, condition, covenant or term contained in the Sublease required to be observed or performed by the City, the
Authority or its assignee may not exercise any rights of entry upon or repossession of the Leased Property. In the e
vent of such default, the Authority or its assignee must thereafter maintain the Sublease in full force and effect and may only recover rent and other monetary charges as they become due, all without terminating the City’s right to posse
ssion of the Leased Property, regardless of whether or not the City has abandoned the Leased Property; this shall be the sole and exclusive remedy available against the city under the sublease or otherwise. The Authority shall have n
o right upon an event of default under the sublease by the city to accelerate the rental payments, terminat e the s
ublease or re-enter the leased property.
(11) Derivative Instruments
Discret
ely Presented Component Units
Pasade
na Center Operating Company (PCOC)
Conferen
ce Center Variable Rate Demand Refunding Certificates of Participation – SWAP No. 2 On
September 18, 2006, PCOC entered into an interest rate swap agreement with DEPFA Bank related to the $135,500,000 Conference Center Auction Rate Certificates Series 2006B. The objective was to effectively change the City’s Variable interest rate to a synthetic fixed rate of 3.536%. Under the terms of the swap, the City pays the counterparty the fixed rate of 3.536% and receives a floa ting rate equal to 64% of the one-month LIBOR rate. The swap has a notional amount of $133,000,000 representing a hedge ratio of 98.7% and declines according to the schedule set forth in
the contract until the final principal payment on the certificates in 2034.

Objective and Terms of Hedging Derivative Instruments
The following table displays the objective and terms of PC OC’s he dging derivative instruments outstanding at June
30, 2022, along with
the credit rating of the associated counterparty:

Cash Flow Notational Effective Maturity Counterparty
Hedge Objective Amount Date Date Term Credit Rating
Pay-fixed interest
rate swaps
Hedge of changes
in cash flows on
the 2008A COP's
$ 133,000,000 4/1/2011 2/1/2034
Pays 3.536%;
receive 64% of
LIBOR index
A1/AA-

Note in 2011, due to its declining cr edit ratings, DEPFA was replaced by RBC as the counterparty for the swap.

Pursuant to GASB 64, the replacement did not require any change in accounting treatment.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 86 Annual Comprehensive Financial Report | June 30, 2022 (11) Derivative Instruments (Continued)
Pasadena Center Operating Company (PCOC) (Continued)
Objective and Terms of Hedging Derivative Instruments (Continued) O
n April 15, 2008, the City issued the 2008 Refunding Certif icates of Participation, Seri es 2008A in the amount of $134,720,000.

These certificates were issu ed to refund the City’s Certificates of Participation (Confer ence Center Project), Series
2006B and finance the cost of execution of the 2008A Certificates of Participation backed by a letter of credit from Bank of America. The final maturity on the 2008A COPs was extended by one year to 2035 in order to reduce the reserve requirement and consequently, reduce the size of the issue by appr oximately $800,000. The refunded cer
tificates are considered to be defeased and the liability has been removed from the component unit’s column of the statement of net position and recorded as a deferred amount upon a refunding.

During the fiscal year ending June 30, 2011, PCOC entered into a new agreement to take advantage of a more advantageous interest rate adjustment mode than the 2008 Series Bonds previously had. As a result, the former derivative instrument terminated, and the new instrument has off-market terms. As a result, an up-front payment was received. The up-front payment is reported as a borrowing. The borrowing is amortized over the life of the swap and amortizes using the effective intere st method for the life of the swap with adjustments to interest expense during each fiscal year. The original balance of the borrowi ng was $8,935,613. As of the year ended June 30, 2022, the balance was $4,166,486.

Beginning Accrued E nding
June 30 Balance Interest Payment Balance
2023 4,166,486$ 179,003$ (646,380)$ 3,699,109$ 2024 3,699,109 157,461 (635,404) 3,221,166 2025 3,221,166 136,068 (601,344) 2,755,890 2026 2,755,890 115,332 (563,760) 2,307,462 2027 2,307,462 95,454 (522,409) 1,880,507 2028 1,880,507 76,649 (477,171) 1,479,985 2029 1,479,985 59,154 (427,721) 1,111,418 2030 1,111,418 43,226 (373,774) 780,870 2031 780,870 29,157 (315,009) 495,018 2032 495,018 17,258 (251,140) 261,136 2033 261,136 7,877 (181,805) 87,208 2034 87,208 1,487 (88,695) - The City
categorizes its fair value meas urements within 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 quoted prices in active markets for identical asse ts; Level 2 inputs are significant other observable inputs. Level 3 inputs are significant unobservable inputs.

The City has the following recurring fair value measurements as of June 30, 2022:

L evel
Measurements by fair value level 1 2 3
Derivative instrument liability 10,763,362$ - $ 10,763,362$ -$

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 87 (11) Derivative Instruments (Continued)

Derivative Instrument Liability

The fair value balance and notional amount of the derivative instrument outstanding at June 30, 2022, classified by type, and the changes in fair value of such derivative instruments for the year then ended are as follows:

Cash Flow Notational Effective Maturity Counterparty
Hedge Objective Amount Date Date Term Credit Rating
Pay-fixed interest
rate swaps
Hedge of changes
in cash flows on
the 2008A COPs
$ 133,000,000 4/1/2011 2/1/2034
Pays 3.536%;
receive 64% of
LIBOR index
Aa2/AA-

The fair values of the interest rate swaps were estimated using the zero-coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement on the swaps.

Credit risk: PCOC is exposed to credit risk on hedging derivative instruments to the extent that value of the swap is position from PCOC’s perspective. The aggregate fair value of hedging derivative instruments was negative as of June 30, 2022 and therefore PCOC had no credit risk exposure.

Interest rate risk: The purpose of the swap is to eliminate interest rate risk on the associated hedged bonds and therefore the swap, in combination with related bonds does not create interest rate risk for PCOC.

Basis risk: PCOC is exposed to basis risk on its pay-fixed inte rest rate swap because the variable-rate payments received by PCOC on these hedging deri vative instruments are based on a rate or index other than interest rates PCOC pays on its hedged variable-rate debt, which is typically remarketed every 7 days. As of June 30, 2022, the weighted-average interest rate on the PCOC’s hedged variable-rate debt is 0.69900%, while 64 percent of LIBOR is

0.6739%.

Termination risk: PCOC or its counterparty may terminate a derivative instrument if the other party fails to perform under the terms of the contract. The derivative contract uses the International Swap Dealers Association Master Agreement which includes standard termin ation events such as failure to pay and bankruptcy. In addition, PCOC may optionally terminate the agreement on any date. If at the time of a termination, PCOC may be required to make a termination payment to its counterparty. If PCOC had to terminate the Swap for any reason on June 30, 2022, the maximum exposure/loss would have been $15,484,274.

Rollover risk: PCOC is exposed to rollover risk on hedging derivative instruments that are hedges of debt that mature or may be terminated prior to the maturity of the hedged debt. When these hedging derivative instruments terminate prior to the maturity of the related debt, PCOC will be re-exposed to the risks being hedged by the hedging derivative instrument.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 88 Annual Comprehensive Financial Report | June 30, 2022 (12) Fund Balance and Net Position
Fun
d Balances, Governmental Funds
On the Governmental Balance Sheet, the fund
balances are reported in the aggregate in the classifications defined by G
ASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. Fund balances by classification for the year ended June 30, 2022, are as follows:

Project General No n-Major
Management Debt Housing Governmental
General Fund Capital Project Service Successor Funds
Fund Balances
Nonspendable:

Prepaid and other assets 191,694$ - - - 148,066$ Permanent fund principal - - - - 1,434,131
Notes receivable 13,505,395 - - - -
Total Nonspendable 13,697,089 - - - 1,582,197 Restricted for:

Air Quality Improvement - - - - 112,173
Notes receivable - - - - 58,023,672
Allowance for uncollectible long-
term receivables - - - - (58,023,672)
City Charter/Capital projects - 611,197 -
- 1,877,674
Debt service - - 8
13 - 7
,083,750
Culture and literacy - - -
- 3,021,242
Housing and Community Development
Housing funds - - - - 2,441,428

CDBG - - - -
Inclusionary Housing Trust - - - - 5,746,550
Rental Assistance programs - - - - 2,396,343
Other purposes - - - 1,892,827 536,019
Property held for resale - - - - 560,996
Public
Safety
Asset Forfeiture - - - - 2,815,506
Public Safety Augmentation - - - - 1,595,018
Other Public Safety Programs - - - - 476,271
Section 108 HUD Loan Security for
Robinson Park Recreation Center
Rehabilitation 400,000 - - - -
Section 115 Trust - Pension 11,701,050 - - - -
Transportation - - - - 33,678,258
Total Restricted 12,101,050$ 611,197$ 813$ 1,892,827 $ 62,341,228$ (Continued)

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 89 (12) Fund Balance and Net Position (Continued)

Fund Balances, Governmental Funds (Continued)

Project General Non-Major
Management Debt Housing Governmental
General Fund Capital Project Service Successor Funds
Fund Balances, continued
Total from previous page 25,798,139$ 611,197$ 813$ 1,892,827$ 63,923,425$ Committed to:

Building Plan Check and Permit
Services - - - - 21,762,323 Building Services - General Plan
Maintenance Fee and
Technology Fee - - - - (5,244,443) Capital Projects - - - - 18,011,030 Emergency Contingency 43,003,950 - - - - Operating Reserve 14,334,650 - - - - Libraries - - - - 13,037,831 Pasadena Center Capital
Improvement Trust - - - - 54,246 Parking - - - - 4,062,539 Sewer Construction and
Maintenance - - - - 14,248,428 Underground Utilities - - - - 36,281,049 Total Committed 57,338,600 - - - 102,213,003 Assigned to:

General Government 6,384,489 - - - - Capital Projects 16,694,485 2,775,330 - - - Total Assigned 23,078,974 2,775,330 - - - Unassigned - - - - (9,479,885) Total Fund Balance 106,215,713$ 3,386,527$ 813$ 1,892,827$ 156,656,543$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 90 Annual Comprehensive Financial Report | June 30, 2022 (12) Fund Balance and Net Position (Continued)
Net Position
On the
government-wide statement of net position, the net position is reported in one of three classifications: Net Investment in
Capital Assets, Restricted, or Unrestricted. Net position by classification as of June 30, 2022 are as follows:

Component Units
Total Aggregate
Governmental Business-Type Primary Component
Activities Activities Government Units
Net investment in capital assets 471,778,310$ 499,718,823 $ 971,497,133 $ (10,049,624) $ Restricted:

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

Community development 15,516,715 -
15,516,715
-
Public safety 4,975,255 -
4,975,255
-
Capital projects 2,488,871 -
2,488,871
-
Debt service 7,084,563 36,484,028 43,568,591 11,663,709
Stranded investments -
43,780,340
43,780,340
-
Transportation 33,718,365 -
33,718,365
-
Contribution to General Fund -
19,544,138
19,544,138
-
Culture and literacy 3,021,242 - 3,021,242 -
Other purposes 994,715 9,665,198 10,659,913
870,240
Air quality improvement 159,964 -
159,964 -
Trust and loans 12,101,050 -
12,101,050
-
Unrestricted (403,720,571) 270,029,438 (133,691,133) (16,108,116) Total Net Position 149,552,610$ 879,221,965$ 1,028,774,575$ (13,623,791)$ Primary Government

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 91 (13) Restricted Net Positi on – Stranded Investments

In 1998, the City Co uncil established a Reserve for Stranded Inve stment (Reserve) and imposed a Stranded Investment Surcharge (SIS) on all elec tric utility bills. The purpose of the Re serve for Stranded Investment was to create a fund to mitigate the potential impacts of open access to the energy market for Water and Power Department (PWP) customers and offset short- and lo ng-term stranded energy costs associated with the Intermountain Power Project (IPP) and Palo Verde Nuclear Generating Station (PVNGS). Several sources of funding for the Reserve were identified in addition to the SIS and funding continued until June 30, 2002. At that time, it was determined that the Reserve was fully funded with no additional contributions required. Collection of the SIS was discontinued, and excess funds returned to PWP customers. All funds depo sited into the Reserve, including investment earnings, were recorded as income during the year collected or realized.

In November 2006, the City Council approved the Stranded Investment Reserv e Utilization Plan (Plan). In January 2009, in accordance with the Plan and a previously approved Prepayment Agreement (Agreement), PWP utilized approximately $80.0 million of the reserve funds to complete an economic defeasance of selected bonds for IPP. As authorized in the Agreement, the Intermountain Power Agency (IPA) issu ed approximately $70.0 million of subordinated notes to PWP, the payments for which will o ffset a portion of the debt service associated with the economically-defeased bonds, thereby reducing the cost of energy purchased from IPP.

As of June 30, 2022, the St randed Investment Reserve balance was $43. 8 million. The details of the additions and subtractions, in the Reserve, that occurred during fiscal year 2022 are shown below:

Restricted Cash and Investment
Beginning balance 54,000,846$
Interest earnings 665,689
Market gain (loss) (6,000,734)
Transfer of SIR (7,000,000)
Restricted cash and investment ending balance 41,665,801 $ IPA Subordinated Notes
Balance at Balance at
June 30, 2021 Reduction June 30, 2022
Notes receivable 8,046,667$ (6,606,250)$ 1,440,417$ Premium 1,348,244 (674,122) 674,122 Total IPA subordinate d note s 9,394,911$ (7,280,372)$ 2,114,539$ Restricted for Stranded Investments at June 30, 2022 43,780,340$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 92 Annual Comprehensive Financial Report | June 30, 2022 (14) Accumulated Fund Deficits
The following
funds reported accumulated deficits in their respective fund balances/net position at June 30, 2022:

Due to
Operations
Due to GASB 68
Implementation
Due to GASB 75
Implementation
Total
Accumulated
Deficit
Governmental Activities:

Special Revenue Funds:

Health (7,216,105) $ - $ -$
(7,216,105)$
Internal Service Funds:

Computing and Communication Services 1,335,547 (7,225,009) (2,544,926) (8,434,388) Benefits (55,247,700) (37,871,560) (163,136) (93,282,396) Workers' Compensation (29,555,030) (5,112,862) (195,764) (34,863,656) General Liability (37,164,949) (265,700) (65,255) (37,495,904) 311 Call Center 69,901 (180,334) (195,764) (306,197) Mana
gement’s plans for resolution of the accumulated fund deficits are as follows:

Health Fund
The Health Fund was established to acco unt for grants for the provision of health services which are restricted by grant award agreement as well as state health realignm ent funding requirements. Th e Pasadena Public Health Department continues its steadfast commitment to offering programs that improve public health outcomes while maintaining systems and controls for a financially sustainable operation. In fiscal year 2022, the Department ended the year with a shortfall largely attributable to COVID pandemic response; however, the City will be requesting FEMA reimbursement for pandemic related expenses. To address any continued fiscal cha llenges, the Department will continue to expedite processing of grant reimbursement requests; maintain monitoring of program and financial performance.

Computing and Communications Fund
The Computing and Communications fund was established to historically track and fund the operations and lifecycle capital replacement of the City’s Department of Information Technology, which provides centralized IT support across all City departments. In fiscal year 2022, the deficit decreased comp ared to fiscal year 2021 primarily attributable to a decrease in GASB 68 and 75 costs. There was also a significant number of personnel vacancies due to service retirements and internal promotions that kept personnel costs lower than expected. The deficit is being monitored by management, and an appropriate revenue recovery plan to gradually reduce the deficit is in place, as IT is solely funded by the fixed rates it charges to its customer departments. The first step in this plan was initiated in fiscal year 2023 where these rates were increased by over 11% from fiscal year 2022 in an effort to ‘true-up” from prior years when rates were even held flat in fiscal year 2022. The challenge in the coming years will be to maintain enough growth in revenues to keep pace with the costs ne eded to provide effective service, while also combatting any financial pressures that may impact a fund’s ability to absorb these increases.

Benefits Fund
The Benefits Fund was established to account for employee compensated absences, retirement, and health benefits.

A large deficit is likely to be shown in this fund at the end of each fiscal year, as the largest component represents a portion of the unfunded pension liability, and a second largest portio n of the deficit reflects the total liability from accrued leave balances. Each year, the city reviews the ra tes charged to Departments to adjust to an appropriate recovery level and keep the deficit as low as possible or reduce it. The overall fiscal year 2022 fund balance deficit increased by $2.2 million. This is primarily attributable to revenue of $34.3 million exceeded by expenses of $36.5 million. The expense increases are attributable to increased pension contributions, benefits, and compensation. To better manage the short-term costs and long-term liabilities associated with pensions and OPEB, the City set aside $10.5 million into a Section 115 pension trust and $2 million into a Section 115 OPEB trust in fiscal year 2018.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 93 (14) Accumulated Fund Deficits (Continued)

Workers’ Compensation Fund
The City has established a Workers’ Compensation Fund to provide benefits for potential claim and cost expenditures for workers’ compensation claims against the City. In addi tion to any monies held in this Fund, the City makes an annual appropriation based upon its estimate of claim an d expense payments during the fiscal year. Management has reviewed the deficit and is working to correct the situation through a combination of injury prevention programs, training programs, reduction of claim severity and claim frequency, return-to-work procedures, medical management and minimizing delays in all aspects of cl aims handling. An increase in rates charged to the Departments remains a part of the annual budget process. The City initiated the Carve Out program with Pasadena Police Officers Association (PPOA) and th at program remains in effect through all of the current fiscal year. That program is focused on ensuring timely delivery of treatment that will: (1) expedite claim resolutions; and (2) reduce costs and litigation. All of this will continue to reduce the negative fund balance.

General Liability Fund
The City has established a General Liability Fund to provide for the potential claim and cost expenditures for general liability claims against the City. In addition to any monies held in this Fund, the City makes an annual appropriation based upon its estimate of claim and expense payments during the fiscal year. In fiscal year 2019, there was a deficit primarily attributable to lower rates charged to Departments. In fiscal years 2020 and 2021, the City increased rates to collect an additional $1.2 million from Departments. Additionally, in fiscal year 2020 the General Fund transferred $5.0 million into this fund to help address increased claims and improve the deficit. In fiscal year 2022 the City again increased the allocation to the fund while undertaking a cost recovery study to revise the allocation methodology along with a review of future liability claims payable amo unts. In fiscal year 2023, a new allocation methodology shall be put in place to collect an additional $5 million annually to cover increased settlements and self-insured retention amounts, which should gradually reduce the deficit.

311 Call Center Fund
The City has established the 311 Call Cent er fund to account for the operations of the City’s central call center. In fiscal year 2022, there was a deficit primarily attributable to the implementation of GASB Statements 68 and 75.

Management reviewed the deficit during the fiscal year 2022 operating budget process and proposed to increase revenue transfers for fiscal year 2023. However, as the Department continues to revert to normal operations, post Covid pandemic and the reorganization of two major Divisions (Parks and Natural Resources and Street Maintenance and Integrated Waste Divisions) in fiscal year 2022, the fund will incur a defici t. For fiscal year 2024, the revenue sources and fund structure will be reviewed to address the ongoing GASB 68 and 75 deficits.

GASB Implementation
In fiscal year 2018, the City implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. As part of the implementation, the City has recorded certain deferred inflows/outflows and obligations, related to other postemployment benefits provided to employees, to the proprietary funds. This caused several of the fund’s fund balances to fall into or increase a deficit position.

In fiscal year 2015, the City implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions.

As part of the implementation, the City has recorded ce rtain deferred inflows/outflows and obligations, related to the pension benefits provided to employees, to the pr oprietary funds. This caused several of the fund’s fund balances to fall into or increase a deficit position.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 94 Annual Comprehensive Financial Report | June 30, 2022 (15) Excess of Expenditures over Appropriations
The following funds reported an excess of expenditures over appropriations at June 30, 2022:

Better (Worse)
Budget Actual Than Final Budget
General Fund:

General Government
Non-departmental 24,576,700 $ 24,981,166 $ (404,466) $ Transportation
Public Works & Transportation 21,313,105 22,028,024 (714,919) Culture and Leisure
Non-departmental - PCOC 10,076,565 11,548,087 (1,471,522) Debt Service
Interest - le ases (as lesse e) - 26,306 (26,306)
Lease payments - 592,259 (592,259)
Transportation Fund:

Debt Service
Interest - le ases (as lesse e) - 57 (57)
Lease payments - 49,480 (49,480)
Library Services Fund:

Debt Service
Interest - le ases (as lesse e) - 225 (225)
Lease payments - 148,483 (148,483)
Parking Fund:

Debt Service
Interest - le ases (as lesse e) - 23 (23)
Lease payments - 8,949
(8,949)
Housing and Community Development Fund:

Debt Service
Interest - le ases (as lesse e) - 5,425
(5,425)
Lease payments - 304,525 (304,525)
General Fund:

Culture a
nd Leisure – Non-Departmental-PCOC
The City provides a significant portion of the operating support of the Pasadena Center Operating Company (PCOC) through an allocation of Transient Occupancy Tax (TOT) collected by the City. In fiscal year 2022, the actual allocation to PCOC is approximately $1,500,000 more than the budgeted amount because of the increase in TOT collection, caused by favorable hotel, motel, and short-term rental activity during the year.

Other Governmental Funds:

Other City funds with interest and lease financing prin cipal expenditures in excess over appropriations relate to the first-year implementation of GASB 87. Prior to fiscal year 2022, these expenditures were presented within the governmental funds’ function as opposed to being presented under debt service.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 95 (16) Pledged Revenue

The City and its component units have a number of debt issuances outstanding that are collateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions of the accompanying notes. For the current year, debt service payments as a percentage of the pledged gross revenue (net of certain expenses where so required by the debt agreement) are indicated in the table below. These percentages also approximate the relationship of debt service of pledged revenues for the remainder of the term of the commitments.

Annual Amount
of Pledged Revenue Annual Debt Debt Service
Description of (net of expenses) Service Payment as a Percentage of Pledged Revenue (in thousands) (in thousands) Pledged Revenue Primary Government
Light and Power Revenues 52,522$ 16,372 31% Water Revenues 17,781 5,652 32%

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 96 Annual Comprehensive Financial Report | June 30, 2022 (17) Transfers
The following i
s a summary of transfers in and out for the year ended June 30, 2022:

General
Project D ebt Non-Major
G
eneral Management Service Governmental
Transfers Out Fund Fund Fund Funds
General Fund -$ 3,372,837 $ A 7,089,743 $ F 18,818,481$ B Project Management Fund - - - 5,462 Non-Major Governmental Funds 195,996 21,963,687 C - - Light and Power Fund 18,000,000 E - - - Water Fund 1,894,138 - - 250,000
Off-Street Parking - - - -
Non-Major Enterprise Funds 198,240 117,074 - - Internal Service Funds - 1,589,305 -
-
Total 20,288,374$ 27,042,903 $ 7,089,743 $ 19,073,943 $ Transfers In
Primary Government
(A) Transfers of $3,372,837 fr
om General Fund to Project Management Fund mainly consisted of:
• $2,
105,898 for the technology upgrade projects, including $1,799,862 for the police computer-a ided dispatc
h and records management system replacement project.
• $752,594 for the improvement of Municipal buildings
(B) Transfers of $18,818,481
from General Fund to Non-Major Governmental Funds mainly consisted of:
• $1
1,802,558 to support the Library Services Fund
• $4,298,750 to pay for 2015A Refunding COPs
(C) Transfers
of $21,963,687 from Non-Major Governmental Funds to Project Management Fund mainly consisted of:
• $9,
925,803 from Residential Development Impact Fund
• $3,129,167 from Road Maintenance and Rehabilitation Account • $2,
822,278 from Gas Tax Fund
• $2,767,099 from Sewer Facility Charge Fund and Sewer Construction Management Fund (D)
Transfers of $8,288,302 from Non-Major Governmental Funds to Light and Power Fund to pay for the underground utilities program expenses.
(E) Light and Power Fund contributed $18,000,000 to the General Fund for the payment of interest and principal on Cit
y bonds, municipal improvements, and other purposes.
(F)
Transfer of $7,089,743 from General Fund to General Debt Service Fund mainly consisted of • $1,
274,585.89 to pay taxable pension obligation for Bonds Series 2015 • $4,756,155.39 to pay pension obligation for Bonds Series 2020AB

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 97 (17) Transfers (Continued)

Light
and Off- Non-Major Internal
Power Street Enterprise Service
Fund Parking Funds Funds Total
-$ 1,000,000$ - $ 3,798,703$ 34,079,764$ - - 266,764 212,230 484,456 8,288,302 D - - 10,600 30,458,585 - - - - 18,000,000 - - - - 2,144,138 - - - 83,000 83,000 - - - 375,000 690,314 - - - 86,000 1,675,305 8,288,302$ 1,000,000 $ 266,764 $ 4,565,533$ 87,615,562$ Transfers In

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 98 Annual Comprehensive Financial Report | June 30, 2022 (17) Transfers (Continued)
Fiduciary Funds
The following is a summary of transfers in and out for the year ended June 30, 2022:

Transfer Out
Redevelopment Obligation
Transfer In Retirement Fund Total
Successor Agency Debt Service 24,899$ 24,899 Total 24,899$ 24,899
The Redevelopment Obligation Retirement Fund transferred $24,899 to the Successor Agency Debt Fund.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 99 (18) Self-Insurance

The City maintains self-insurance and excess insurance programs for various lines of liability coverage. Liability claims are self-administered within the Self-Insured Retention (SIR). For the period of July 1, 2021 to June 30, 2022, excess liability insurance was purchased with limits of $25,000,000 in excess of $5 ,000,000 per occurrence SIR. Excess worker’s compensation insurance is at $4,000,000. Workers’ compensation claims for all City workers, including Public Safety, Fire and Police, are administered by a third-party administrator, Acclamation Insurance Management Services (AIMS). The City maintains a few self-administered claims (for dates of injury prior to 7/1/2012).

The City currently has twenty-three (23) workers’ compensation claims from prior years that exceeded the SIR. These claims’ breakdown that exceeded the corresponding year’s SIR excess level are as follows:

Number of Existing
Worker’s Compensation
Claims
Retention
Amount
9 $500,000
8 250,000
1 100,000
5 50,000
Total 23

No workers’ compensation injury was incurred since the SI R has been $4,000,000. City has received $3,112,628 in workers’ compensation excess recovery. City is requesting $1,587,543 in workers’ co mpensation excess recovery currently.

The Civil Division of the Department of the City Attorney /City Prosecutor, primarily using in-house civil attorneys, controls litigated liability claims. A claim is a demand seek ing damages allegedly arising out of a wrongful act for which the claimant asserts the City is responsible. During fiscal year 2022, the City paid $14,671,962 in claims and settlement payments. For new claims with alleged dates of loss within fiscal year 2022 , the overall total incurred was $380,581. Liability ag ainst a public entity is mitigated by existin g laws/statutes/codes, which provide certain immunities. The City currently has approximately nine (9) active litigation cases, each with reserves estimated in excess of $2,000,000.

SIR losses and administrative costs are reported in the General Liability and Workers’ Compensation Internal Service Funds. Losses incurred are reimbursed by departments over a period of time as part of an internal service assessment system. Legal expenses are reported in the City Attorney Department of the General Fund. A case reserve is established for each claim, monitored, and adjusted by the Liability Division or the Workers’ Compensation Claims Supervisor, including expected litigation expenses and losses that will be paid by the City Treasurer.

Heliport and Aircraft coverage provides protection to th e City for liability arising out of its public safety/police helicopter operations and for the City’s leadership role on the LA Impact Team. The policy carries a per occurrence limit of $50,000,000 for Aircraft Hull and Liability, with an aggregate of $50,000,000. Coverages include hull physical damage for the scheduled aircraft, damage done by the Ci ty’s aircraft to someone else’s hangar, and emergency landing. The policy also covers liability resulting from an error by pilot. In addition, the policy provides coverage for Airport Liability with a $50, 000,000 per occurre nce limit. This coverage complies with the City’s contract with Hollywood Burbank Airport. The annual premium is apportioned between the City and LA Impact since the policy carries hull coverage for LA Impact aircraft.

The City renewed property insurance on all its buildings, with a combined to tal scheduled insured value of $1.14 billion. The policy includes coverage for fine arts, valuable papers, business personal property, business income, and extended business income or rental value. Policy limits are $250,000,000 with a deductible of $25,000 for Earthquake Sprinkler Leakage, $100,000 for Flood, and $25,000 for any other covered loss. Exclusions include earthquake, collapse of buildings and nuclear hazard. There have been no new claims during fiscal year 2022.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 100 Annual Comprehensive Financial Report | June 30, 2022 (18) Self-Insurance (Continued)
The City’s Property: Power Plant Boiler and Machinery policy, with total insured value of $425,202,564. The program provides property and equipment breakdown coverage for City’s power plant facilities and machinery. The policy affords coverage for risks of loss or damage, including boiler explosion and machinery breakdown. Policy limits are $
250,000,000 with deductibles of $750,000 per occurrence for all other property damage and $1,500,000 pe r occ
urrence for machinery breakdown of GT1, GT3, and GT5. The City has received no new claims under this policy for fiscal year 2022.

In an effort to protect the City’s assets and transfer po tential risk, the City also pur chases the following insurance policies: Medi
cal Malpractice; Pollution Liability; Terrorism – Chemical, Biologic al or Biochemical, Radiological or Nuclear (CBRN); Auto Physical Damage; Cyber Liability; Fiduciary (pur chased for and by the Fire and Police Retirement
System); and Crime policies.

Pasadena Center Operating Company (PCO C) is entitled to indemnity from the City; however, PCOC purchases a Special Liability Insurance Program (SLIP) for general liability and employment practice coverage. The City manages the PCOC claims and tenders to the insurance carrier thir d party administrator. PCOC carries statutory workers’ compensation insurance with no retention. PCOC requires licensees to provide insurance or purchase Special Events Liability Insurance from PCOC. The City buys liability insurance on the parking structures at PCOC. PCOC buys separate liabili
ty insurance on the ice rink.

Rose Bowl
Operating Company (RBOC) is entitled to indemnity from the City, and its losses are included in the City’s general liability self-insurance program and under the ex cess general liability policies. RBOC carries statutor y workers’ compensation insur
ance with no retention. Br ookside Golf Course is also managed through RBOC. Major Rose Bowl tenants include the Pasadena Tournament of Roses, UCLA Football, and th e R.G. Canning Swap Meet.

Tenants provide insurance, naming City of Pasadena as additional insured on their policies.

The claims liability reported i
n the General Liability and Workers’ Compensation Internal Service Funds is based on the requirements of GASB Statement No.
10 (Accounting and Financial Reporting for Risk Financing and Related Insurance Issues), which requires a liability for claims to be repo rted if information prio r to the issuance of the financial
statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated, including incurred but not yet reported claims. As of June 30, 2022, General Liability claims payable amounted to $35,174,026 of which $17,856,032 is estimated to be paid within one year.

Workers’ Compensation claims payable amounted to $40,978,607 of which $16,451,65 1 is estimated to
be paid within one year.

Beginning Fiscal Year Claim Ending
Fiscal Ye ar L iabilit y In Est im ate s Paym e nt s L iabilit y 2020-21 40,239,238$ 35,024,507$ (33,219,552)$ 42,044,193$ 2021-22 42,044,193 64,785,235 (30,676,795) 76,152,633

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 101 (19) Deferred Compensation Plan
For t
he benefit of its employees, the City has adopted a deferred compensation plan in accordance with Section 457 of the I
nternal Revenue Code. Generally, eligible employees may defer receipt of a portion of their salary until termination, retirement, death, or an unforeseeable emergency. As a result of changes under the Small Business Job Protection Act of 1996, all amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts must be held in a trust, custodial account, or annuity contra
ct for the exclusive benefit of the employee participants and their beneficiaries.

The plan
has a Plan Administrator an d an oversight committee. The five-member committee is comprised of three elected City employees and two members of the community appointed by the City Council. The oversight committee members basically monitor the plan ac tivity, performance of investment options and ensu re that the Plan Administrator
carries out his duties an d responsibilities. The Plan Administrator, the Direct or of Finance, or his designee, is responsible for
the day-to-d ay administration. The Pl an Administrator has authority to sign all legal agreements with approved plan providers, and ensures proper amounts are withheld, immediately transferred to the trust, and invested in accordance with participants’ directions.

As of June 30, 2022 the market value of the City’s deferred compensation plan assets amounted to $325,092,326. (20) Pension Plans
Each full-time employee
and each part-time employee (with 1,000 hours or more of service) of the City is a member of either the FPRS or CalPERS. Both plans are defined benefit pension plans and are described individually in the following notes.

Summary of Pension Plans
Net Pension
Liability
Pension
Expense
Deferred Outflows
Related to Pension
Deferred Inflows
Related to Pension
Pasadena Fire and Police Retirement Plan (FPRS) 14,629,000 $ 5,908,000$ 6,359,000$ -$ CalPERS - Safety Plan 109,669,810 11,261,147 30,737,680 59,210,266 CalPERS - Miscellaneous Plan 178,024,860 874,812 41,109,435 102,172,214 Total Plans 302,323,670$ 18,043,959$ 78,206,115$ 161,382,480$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 102 Annual Comprehensive Financial Report | June 30, 2022 (20) Pension Plans (Continued)
Pasade
na Fire and Police Retirement System (FPRS)
Plan Description
FPRS
(the System) is a single-employer defined benefit plan governed by a Retirement Board (Board) under provisions of the City Charter. The plan covers all fire and police personnel who were employed by the City prior to July 1, 1977, ex
cept for those who elected to transfer to CalPERS when FPRS closed to new member in June 2004. In June 2004, active members were provided a one-time opportunity to transfer from FPRS to CalPERS as provided by an agreeme
nt with the City. Once transferred to CalPERS, retirement benefits for all fire and police person nel employed t
hereafter are provided under CalPERS. The plan provides retirement, death, and disability benefits.

Copies of FPRS’s annual financial report may be obtained from the Pasadena Fire & Police Retirement System, 100 N. Garfield
Ave., Rm. S201 Pasadena, CA 91101-1726 or at https://www.cityofpasadena.net/commissions/fire-and- police-retirement-board/.

Funding Policy
Section 1509.9 of the City Charter provides that the normal member cont ribution rates will provide an average annuity, at age 50, equal to 1/100 of the final compensation of members for each year of service according to tables adopted by the Board. The basic benefits otherwise funded by these contributions have now been fully funded by Contribution Agreement 16,900. Pursuant to the agreement, the City contributed $100,000,000 net proceeds from the issuance of pension bonds to FPRS on August 5, 1999. The net proceeds plus the existing assets of FPRS became sufficient to fully fund the basic benefits, the unfunded ba sic benefits, the 1919 benefits, and the cost-of-living adjustment (COLA) benefits. Contributions are recogn ized when due. Therefore, member contributions are suspended as long as basic benefits remain fully funded.

On October 20, 2011, the Board approved Amended and Restated Agreement No. 20,823 (“Agreement No. 20,823”).

Under this new agreement, the City’s minimum funding percentage schedule and reimbursement cap in Agreement No. 16,900 carried forward, and the City agreed to provide a contribution of $46,600,000 to the System through the issuance of pension obligation bonds. Agreement No. 20,823 provided that the annual required supplemental contribution would be actuarially calculated using an interest assumption of 6% and an inflation rate of 3% beginning with the June 30, 2012 valuation. Pursuant to this agreem ent, future annual valuations after June 30, 2012, shall adopt an assumed interest rate and inflation assumption based on analysis performed by the System’s actuary and after seeking input from the City and System’s investment consultant. Agreements No. 16,900 and No. 20,823 state that if the minimum funding deficit is greater than $3,000,000 in a year, the City will pay $3,000,000 to the System.

Any remaining amount necessary to reach the minimum funding percentage will be phased in over a five-year period; however, no annual supplemental payment may exceed a reimbursement cap measured by the prior year’s payments for benefits other than the funded basic benefits.

As of June 30, 2022, the funded percentage of the System, calculated in accordance with Agreement No. 20,823 and Agreement No. 16,900, was 87.8%. As provided by Contribution Agreement No. 16,900, if the funded percentage is below the minimum funding percentage of 80% for fiscal year 2022, the City will reimburse the System in the following fiscal year subject to certain reimbursement lim its. Based on the June 30, 2022 actuarial valuation, the funding deficiency was $0, or 0%, below the funding requi rement of 80% as of June 30, 2022. Thus, no required supplemental contribution is owed to the System by the City during fiscal year ended June 30, 2022.

Cash and Investments
Unrestricted pooled cash 971,372 $
Designated pooled cash 1,250,000
Money market funds 547,938
Cash and cash equivalents 2,769,310
Short-term investments 608,561
Investments 113,656,587
Total investments 114,265,148
Total cash and investments 117,034,458$

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 103 (20) Pension Plans (Continued)

The components of the net pension liability of the System as of June 30, 2022 are as follows:

Total Pe nsion L iability 126,290,000$
Beginning Fiduciary Net Position (FNP) 134,732,000$
Net Investment Income (10,656,000)
Benefit Payments (12,072,000)
Administrative Expenses (343,000)
Plan Fiduciary Net Position 111,661,000
N e t Pe nsion L iability/(A sse t) 14,629,000
Plan Fiduciary Net Position as a
Pe rce ntage of Total Pe nsion L iability 88.4%
FPRS

Actuarial Methods and Assumptions Used to Determine Total Pension Liability

Actuarial valuations of an ongoing plan involve estima tes of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and cost trends. Actuarially de termined amounts are subject to continual review or modification as actual results are compared with past expectations and new estimates are made about the future. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employers and plan members) and incl ude the types of benefits provided at the time of each valuation. Following the recommendation provided by the System’s Actuary on May 26, 2022, the Board later accepted the recommended assumptions for use in the preparation of the actuarial valuation for the year ended June 30, 2022.

Discount Rate 5.25%*
Inflation 2.50%
Sal ary Increases No acti ve empl oyees
Mortality
Expected Geometric Real Rate of Return
Large Cap US Equity 3.77%
Small Cap US Equity 4.45%
Foreign Equity 4.41%
Domestic Core Fixed Income 0.53%
Senior Bank Loans 1.64%
Short-Term Investment-Grade Bonds 0.05%
TIPS -0.24%
Risk Parity 3.38%
Real Estate 3.81%
Inacti ve empl oyees or benefi ci ari es currentl y recei vi ng benefi ts** 193 Inactive employees entitled to but not yet receiving benefits - Acti ve empl oyees -
Tot al participants 193
** Alter nat iv e pay ee data for 2 3 Domestic Relat ions Or der (DRO) agr eements pr ov ided separ ately fr om employ ee-r etiree for first time in 6/30/22 v aluation. Benefits for these alternativ e pay ee prev iously included in the corresponding retiree's benefits. All DRO agreements provide benefits to the alternative pay ees for the lifetime of the Sy stem's retiree.

Actuarial Assumptions
*
Disc ount Rat e r eflec t s assumed inv est ment ex pense of 1 5 basis points. 10-year geometri c expected real rates of return from
Board-approved actuarial valuations, as prepared by
Bartel Associates, LLC (June 30, 2013-2021) & Foster &
Foster, Inc. (June 30, 2022)
CalPERS 2000-2019 Experience Study,
Mortal i ty Improvement Scal e 80% Scal e MP-2020

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 104 Annual Comprehensive Financial Report | June 30, 2022 (20) Pension Plans (Continued)
Discount Rate
The discount rate of 5.25% was selected by the System actuary and approved by the Board to measure the June 30, 2022 TPL for accounting purposes. The discount rate is the expected real long-term rate of return, plus the inflation assumption of 2.50%, less assumed inve stment expenses of 15 basis points. Th e expected long-term real rate of return is compared at the 50% and 55% confidence levels of capital market assumptions. Based on the assumptions, the System's Fiduciary Net Position was projected to be available to make all projected future benefit payments. The discount rate used as of June 30, 2022 is lower than the discount rate of 5.75% used as of June 30, 2021.

Asset Class
Target Asset
Allocation
Large Cap US Equity 16.00%
Small Cap US Equity 4.00%
Foreign Equity 20.00%
Domestic Core Fixed Income 25.00%
TIPS 5.00%
Short-Term Investment-Grade Bonds 10.00%
Senior Bank Loans 5.00%
Alternative (Risk Parity) 5.00%
Real Estate 10.00%
Total Portfolio 100.00%
Changes in Pension Liability
AB C = B - A
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Asset/(Liability)
Balance at June 30, 2021 126,851,000$ 134,732,000$ 7,881,000$ Changes Recogni zed for the
Measurement Period:

Service Cost - - -
Interest on the Total Pension Liability 6,947,000 - (
6,947,000)
Di fferences between Expected and Actual
Experience 164,000 -
(164,000)
Contribution from Employers - - -
Contribution from Employees - - -
Net Investment Income - (10,656,000) (10,656,000)
Benefit Payments (12,072,000) (12,072,000) -
Administrative Expense - (343,000)
(343,000)
Change of Assumptions 4,400,000 - (
4,400,000)
Net Change during 2021-22 (561,000) (23,071,000) (22,510,000) Balance at June 30, 2022 126,290,000$ 111,661,000$ (14,629,000)$ Ending Fiduciary Net Position as a
Percentage of the Total Pension Liabil ity 88.4%
Pension Expense 5,908,000$
Increase / (Decrease)

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 105 (20) Pension Plans (Continued)

Sensitivity of the Net Pension Liability to Changes in the Discount Rates

Examining the sensitivity of the net pen sion liability (NPL) to changes in the d iscount rate by a 1% decrease, from

5.25% to 4.25%, revealed an increase in the NPL by $10,041,000 to a total NPL of $24,670,000. Conversely, increasing the discount rate by 1%, from 5.25% to 6.25%, revealed a corresponding decrease in the NPL of $8,782,000 to total NPL of $5,847,000 as of June 30, 2022.

Discount Rate -1%
(4.25%)
Current Discount
Rate (5.25%)
Discount Rate +1%
(6.25%)
Ne t Pe nsion L iability (N PL ) 24,670,000 14,629,000 5,847,000 NPL Funded Percentage 81.9% 88.4% 95.0%
FPRS

Deferred Outflows and Deferred Inflows of Resources Related to Pensions

Deferred Outflows of
Resources
Deferred Inflows of
Resources
Net Deferred of
Resources
Projected versus Actual Earnings on
Investments 6,359,000 $ - $ 6,359,000$ Total 6,359,000$ - $ 6,359,000$ FPRS

Measurement Period
ended June 30:

Deferred
Outflows/(Inflows) of
Resources
2023 1,186,000 $
2024 1,076,000
2025 498,000
2026 3,599,000
FPRS

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 106 Annual Comprehensive Financial Report | June 30, 2022 (20) Pension Plans (Continued)
CalPERS
Miscellaneous and Safety Plans
Plan
Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan and Safet
y Plan (Plans), agent multiple-employer defined bene fit pension plans administered by the C alifornia Public Employe
es’ Retirement System (CalPE RS), which acts as a common investme nt and administrati ve agent for its participating member employers. Benefit provisions unde r the Plans are established by State statute and City resolution. CalPERS issues
publicly available reports that include a full de scription of the pen sion plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits
Provided
CalPERS provide service retirement and disability benefits, annual cost of liv ing adjustments and death benefits to plan members, who must be public employees and beneficiar ies. Benefits are based on years of credit ed service, equal to o
ne year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service.

The deat
h benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan ar e applied as sp ecified by the Public Employe
es’ Retirement Law.

The Plan provisions and benefits in effect at June 30, 2022, are summarized as follows:

Hire date Prior to January 1, 2013 Hire date Prior to January 1, 2013 Benefit formula 2.5% @ 55 Benefit formula 3% @ 55
Be nefit ve sting sche dule 5 ye ars se rvice Benefit ve sting sche dule 5 years service Benefit payments monthly for life Benefit payments monthly for life Retirement age 50 Retirement age 50
Monthly be ne fits, as a % of e ligible
compensation 2.00% to 2.50%
Monthly be ne fits, as a % of e ligible
compensation 2.40% to 3.00%
Required employee contribution rates 7.730% Required employee contribution rates 9.770% Required employer contribution rates* 34.090% Required employer contribution rates 52.050% *As a percentage of projected payroll
Miscellaneous Safety
Employe
es Covered
At the measur
ement date June 30, 2021, the following employees were covered by the benefit terms of the plan:

Miscellaneous Safety
Inactive employees or
beneficiaries currently receiving
benefits 1,730 402
I
nactive employees entitled to but
not yet receiving benefits 1,116 145
Ac
tive employees 1,408 357
To
tal 4,254 904

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 107 (20) Pension Plans (Continued)
CalPERS
Miscellaneous and Safety Plans (Continued)
Contribution Description
Sectio
n 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determ ined on an annual basis by the actuary and shall be effective on the July 1 following n
otice of a change in the rate. The total plan contributions are determined through CalPERS’ annu al actuarial
valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of be
nefits earned by employees during the year, with an additional amount to finance any unfunded accrue d liability. The employer is required to contribute the diffe r ence between the actuarially determined rate and the
contrib
ution rate of employees. Employer contribution ra tes may change if plan contracts are amended. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer- Paid Member Contributions or situations where members are paying a portion of the employer contribution. Th e City mad
e contributions to the Miscellaneous and Safety Plans during the fiscal year ended June 30, 2022 o f $4
0,463,358 and $25,337,947, respectively.

Net Pension Liability
The City’s net
pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

The total
pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Methods and
Assumptions Used to Determine Total Pension Liability
A ct uarial Cost Me t hod E nt ry A ge N orm al in accordance with the re quire m e nts of GASB Statement No. 68
Discount Rate 7.15%
Inflation 2.
50%
Sal ary Increases Vari es by Entry Age and Servi ce
Mortality Rate Table (1) Derived using CalPERS' Membe rship Data for all Funds Post Retirement Benefit
Increase
The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on
purchasin g power applie s, 2.50% thereafter
A ct uarial A ssum pt ions
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Post- retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

Discount Rate
The discount r
ate used to measure th e total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The stress test results are presented in a detailed report called GASB Crossover Testing Report that can be obtained at CalPERS’ website under the GASB 68 section.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 108 Annual Comprehensive Financial Report | June 30, 2022 (20) Pension Plans (Continued)
Long-Term Expected
Rate of Return
The long-term
expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense an d inflation) are developed for each major asset class.

In determining the lo
ng-term expected rate of return, Ca lPERS took into account both short-term and long-term market retur
n expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds
’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 ye ars) and the long-term (11+
years) using a building-block approach. Using the expected nominal returns for both short- term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of bene fits for cash
flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed ad ministrative expenses.

The expe
cted real rates of return by asset class are as follows:

Asset Class (1)
New Strategic
Allocation
Real Return
Years 1 - 10 (2)
Real Return
Years 11+ (3)
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00 1.00 2.62
Inflation Assets - 0.77 1.81
Private Equity 8.00 6.30 7.23
Real Assets 13.00 3.75 4.93
Liquidity 1.00 - (0.92)
(2) An expected inflation of 2.00% used for this period (3) A n e xpe cte d inflation of 2.92% use d for this pe riod S
ource: CalPERS Annual Comprehensive Financial Report, Fiscal Year Ended June 30, 2021 PERF B & PERF C – Long-Term Expected Real Rates of Return by Asset Class (1) In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is i
ncluded in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.

Sub
sequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of

0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 109 (20) Pension Plans (Continued)

Changes in Net Pension Liability

Miscellaneous
AB C = B - A
Total Pension Liability
Plan Fiduciary Net
Position
Net Pension
Asset/(Liability)
Balance at June 30, 2020,
Measurement Date (MD) 1,205,853,208$ 883,670,577$ $ (322,182,631) Changes Recognized for the
Measurement Period 2020-21:

Service Cost 19,875,637 - (19,875,637) Inte re st on the Total Pe nsion L iability 84, 479,928 - (84,479,928) Differences between Expected and
Actual Experience (2,424,819) - 2,424,819 Contribution from Employers - 38,235,467 38,235,467 Contribution from Employees - 9,264,874 9,264,874 Net Investment Income - 199,470,910 199,470,910 Benefit Payments, including
Refunds of Employee Contribution (63,657,472) (63,657,472) - Administrative Expense - (882,734) (882,734) Net Changes 38,273,274 182,431,045 144,157,771 Balance at June 30, 2021, MD 1,244,126,482$ 1,066,101,622$ (178,024,860)$ Pension Expense 874,812$
Increase/(Decrease)

Safety
AB C = B - A
Total Pension Liability
Plan Fiduciary Net
Position
Net Pension
Asset/(Liability)
Balance at June 30, 2020,
Measurement Date (MD) 709,797,933 $ 518,571,412 $ (191,226,521) $ Changes Recognized for the
Measurement Peri od 2020-21:

Service Cost 13,227,086 - (13,227,086) Inte re st on the Total Pe nsion L iability 50,129,704 - (50,129,704) Di fferences between Expected and
Actual Experience 776,870 - (776,870) Contribution from Employers - 23,383,968 23,383,968 Contribution from Employees - 4,734,292 4,734,292 Net Investment Income - 118,090,132 118,090,132 Benefit Payments, including Refunds of
Employee Contribution (32,147,195) (32,147,195) - Administrative Expense - (518,021) (518,021) Net Changes 31,986,465 113,543,176 81,556,711 Balance at June 30, 2021, MD 741,784,398 $ 632,114,588 $ (109,669,810) $ Pension Expense 11,261,147$
Increase/(Decrease)

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 110 Annual Comprehensive Financial Report | June 30, 2022 (20) Pension Plans (Continued)
Sensitivity of the Net Pension Liability to
Changes in the Discount Rates
The following
presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 per
centage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:

Discount Rate -1%
(6.15%)
Current Discount
Rate (7.15%)
Discount Rate +1%
(8.15%)
Plan Net Pension Liability 332,063,843$ 178,024,860$ 49,708,201$ Discount Rate -1%
(6.15%)
Current Discount
Rate (7.15%)
Discount Rate +1%
(8.15%)
Plan Net Pension Liability 212,860,709$ 109,669,810$ 25,045,762$ Miscellaneous
Safety
Subse
quent Events (as measurement period is from July 1, 2020 through June 30, 2021) On Jul
y 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Th is study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 111 (20) Pension Plans (Continued)

Amortization of Deferred Outflows and Deferred Inflows of Resources

Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expe nse for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred in flows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Net difference between projected
and actual earnings 5 year straight-line amortization
A ll othe r am ounts Straight-line am ortization ove r the e xpe cte d ave rage re maining se rvice life tim e (EA RSL ) of all m e m be rs that are provide d with benefits (active, inactive, and retired) as of the beginning of the measurement period

The EARSL for the Miscellane ous Plan for the measurement period ending June 30, 2021 is 3.4 years, which was obtained by dividing the total service years of 14,442 (the sum of remaining service lifetimes of the active employees) by 4,294 (the total number of participants: active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future serv ice is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

The EARSL for the Safety Plan for the measurement period ending June 30, 2021 is 4.7 years, which was obtained by dividing the total service years of 4,266 (the sum of remaining service lifetimes of the active employees) by 904 (the total number of participants: active, in active, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 112 Annual Comprehensive Financial Report | June 30, 2022 (20) Pension Plans (Continued)
Pension Ex
pense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of J
une 30, 2022, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Deferred Deferred Deferred Deferred Deferred
Ou
tflows of Inflows of Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Resources Resources Changes of A ssum ption -$ -$ 2,068,688$ (243,962)$ 2,068,688$ (243,962)$
Differences between Expected and
Actual Experience 646,076 (3,351,138) 3,331,045 (399,471) 3,977,121 (3,750,609) Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
-
(98,821,076) -
(58,566,833) -
(157,387,909)
C
ontributions Subsequent to the
Measurement Date 40,463,359 -
25,337,947 -
65,801,306 -
Total 41,109,435$ (102,172,214)$ 30,737,680$ (59,210,266)$ 71,847,115$ (161,382,480)$ Miscellaneous Safety Total
The amounts
above are net of outflows and inflows recogn ized in the fiscal year 2020-21 measurement period expense. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Measurement Period
ended June 30
Deferred
Outflows/(Inflows) of
Resources
Measurement Period
ended June 30:

Deferred
Outflows/(Inflows) of
Resources
2022 (26,211,438)$ 2022 (11,631,853)$
2023 (23,932,633) 2023 (12,346,359)
2024 (23,986,667) 2024 (13,711,438)
2025 (27,395,400) 2025 (16,120,883)
2026 -
2026 -
Thereafter -
Thereafter -
Miscellaneous Safety
Define
d Contribution Plan (PARS)
The City provides pension benefits for employees not covered by CalPERS or FPRS through the Public Agency Retirement Services (PARS). This is a defined contribution pl an created in accordance with Internal Revenue Code Sections 401(a) and 501, and administered by Phase II Systems.

In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings.

Employees are eligible to participate from the date of employment. On October 29, 2012, the City adopted a Salary Resolution for the non-represented non-management empl oyees requiring the covered employees to contribute the full 7.5% of their earnings effective December 31, 2012. Prior to the adoption of the Salary Resolutions, the plan agreement required the City to contri bute an amount equal to 4.0% of the employees’ earnings and the covered employee contributed 3.5%. The City contributions for each employee were fully vested.

The City’s payroll for employees covered by PARS for the year ended June 30, 2022 was $4,237,855. The covered employees made the total required 7.5% contributions of $317,839.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 113 (21) Postemployment Benefits Other than Pensions (OPEB)

The City of Pasadena provides a direct subsidy to retire es of the City who are members of the California Public Employees’ Retirement System or the Pasadena Fire and Police Pension System. As such, the OPEB plan is not separately audited and does not issue its own report.

Benefit provisions are established and amended through negotiations between the City and the respective unions.

Two different levels of subsidy toward the purchase of medical insurance from CalPERS under the Public Employees’ Medical and Hospital Care Act (PEMHCA) are offered. These are currently at $149.00 or $143.00 per month depending on the bargaining unit or the unrepresented group the employee was a member.

At the June 30, 2022 actuarial valuatio n, the following current and former employees were covered by the benefit terms:

Inactive plan members or beneficiaries currently receiving benefits 725 Active plan members 1,681
2,406

Plan Description

Eligibility. The plan is an agent mult iple-employer plan which provides benefits under PEMHCA to individuals who retire with the City and begin to collect a monthly benefit under one of the retirement plans sponsored by the City.

Employees who terminate under service retirement or disability retirement and certain survivors of Safety members who die in active service are eligible.

Service Retirement: Employees retiring directly from active status receive medical benefits commencing at retirement. Employee must be age 50 (or 52 if a “new member” as defined in the Public Employees’ Pension Reform Act of 2013) or older with 5 or more years of service.

Disability Retirement: Employees retiring directly from active status due to disability receive medical benefits commencing at retirement. Employees are eligible for Industrial Disability retirement at hire and for Non-Industrial Disability retirement after 5 years of CalPERS service.

Pre-retirement Death:

Safety Employees

Industrial Survivor receives medical benefits commencing immediately.

Non-Industrial Survivor receives medical benefits immediately if death occurs after member reaches age 50 with 5 years of service.

Miscellaneous Employees Survivor receives medical benefits immediately if death occurs after member reaches age 50 with 5 years of service.

Dependent Eligibility Dependents are not eligible for benefits.

Survivor Eligibility Survivors are eligible fo r benefits if the retiree elected a form of coverage providing for continued pension payments to the retiree.

Benefits:

Medical Benefit Eligible retirees are prov ided a subsidy for medical benefits though PEHMCA. For the calendar year 2022, this monthly amount is $149.00 for certain classes of employees and $119.20 for remaining employees.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 114 Annual Comprehensive Financial Report | June 30, 2022 (21) Postemployment Benefits Other than Pensions (Continued) Con
tributions
The Cit
y contributes the minimum amount allowed under Government Code Section 22825 of the PEMHCA enacted by C
alPERS pursuant to State Law. The City’s required monthly contributions for calendar years 2022 and 2021 were $149.00 or $119. 20, respectively. The statutory contribution will be indexed by the medical CPI each year. The required
contribution is based on pay-as-you-go financin g requirements. Retirees must contribute any premium amounts in excess of the City contributi on. In fiscal year 2018, the City set aside $2 million in a Section 115 tr ust account, whi
ch was recognized as a reduction to the OPEB liability. The City has not made any additional contribution since the initial funding and during fiscal year ended June 30, 2022. As of June 30, 2022, the mark et value of the OPEB Se
ction 115 trust account was $2,215,631.

Net OPEB
Liability
The City’s net
OPEB liability was measured as of June 30, 2022 and the total OPEB liability used to calculate the net OPEB liability
was determined by an actuarial valuation dated July 1, 2021, based on the following actuarial methods and assumptions:

Actuarial
Cost Method Entry Age Normal – level percentage of Salary method Actuarial Assumptions
Discount Rate 4.09% as of July 1, 2022 and 2.19% as of July 1, 2021 Inflation 2.8
0% per annum
Payroll Increases 2.80% per annum, plus salary merit increases Merit Increases Merit increases from the most recent CalPERS pension plan valuation.

The benefits are not payroll related but each individual’s projected cost is allocated over their lifetime as a level-percentage of pay.

Healthcare Trend Rate Initial rate of 6.50% decreasing to 6.25%, and then decreasing by 0.25% annually to an ultimate rate of 4.50% in 2030 and thereafter.

Investment Rate of Return 5.0% per annum
Disability According
to the disability rates under the 2021 CalPERS
experience study.

Turnover Rate According to the termination rates under the 2021 experience study for the CalPERS pension plan
Retirement rate According to the retireme nt rates under the 2021 CalPERS experience study. According to the following retirement tables:

Miscellaneous Tier 1: 2.7% @ 55
Miscellaneous Tier 2: 2.0% @ 62
Fire Tier 1: 3.0% @ 55
Fire Tier 2: 2.7% @ 57
Police Tier 1: 3.0% @ 55
Police Tier 2: 2.7% @ 57
Mortality Rate The plan does not have sufficient data to have credible experience.

Therefore, mortality assumptions are set to reflect general population trends based upon Pub-2010 Mortality tables and the most recent generational projection scale MP-2021 released by the Society of Actuaries (SOA) for future mortality improvements.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 115 (21) Postemployment Benefits Other than Pensions (Continued)

Pre-retirement Turnover According to the rates under the 2021 experience study for the CalPERS pension plan
[Rates have been updated to the CalPERS 2017 experience study from the 2014 experience study for the pension plan]
Participation Rates 60% of eligible active employees are assu med to elect medical coverage at retirement. Future retirees are assumed to elect similar coverage as current retirees. Actual plan coverage is used for current retirees.

Spouse Coverage 50% of future retirees are assumed to elect coverage for their spouse.

Male spouses are assumed to be 3 years older than female spouses.

Actual spouse coverage and spouse ages are used for current retirees.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 116 Annual Comprehensive Financial Report | June 30, 2022 (21) Postemployment Benefits Other tha n Pensions (Continued) The long-term
expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long- term expected rate of return by weighting the expected fu ture real rates of return by the target ass et allocation percen
tage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset allocation as of June 30, 2022 are summarized in the following table:

Assets Class Target Allocation
Long-term Expected
Gross Rate of Return
Equities 30.
00% 7.70%
Fixed Income 65.00% 4.00%
Cash 5.
00% 2.40%
Total 100.00% 5.00%
Long-term expected rate of return is 5.00%.

Changes in the
OPEB Liability
AB C = A - B
Total OPEB Liability
Plan Fiduciary Net
Position
Net OPEB
(Asset)/Liability
Balance at June 30, 2021 96,085,460$ 2,521,704$ 93,563,756$ Changes recognized for the
Measurement Period:

Service Cost 4,916,833 - 4,916,833
I
nterest 2,
181,093 - 2,181,093
D
ifference between expected and
actual experience 874,222 - 874,222
C
hanges of Assumptions (26,576,119) - (26,576,119)
Contr
ibution - Employer - 2,833,350 (
2,833,350)
Net Investment Income - (300,832) 3
00,832
Benefit Payments, Net (2,833,350) (2,833,350) -
Administrative Expenses - (5,241) 5
,241
Net Changes (21,437,321) (306,073) (21,131,248)
Balance at June 30, 2022 74,648,139$ 2,215,631$ 72,432,508$ Increase (Decrease)

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 117 (21) Postemployment Benefits Other than Pensions (Continued)

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate

The following presents the net OPEB liability of the City, calculated using the discount rate of 4.09%, as well as what the net OPEB would be if it were calculated using a d iscount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

1% Decrease Current Discount Rate 1% Increase
(3.09%) (4.09%) (5.09%)
Net OPEB Liability 83,793,060$ 72,432,509 $ 63,316,947$

Sensitivity of the Net OPEB Liability to Changes in Health Care Cost Trend Rates

The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

1% Decrease
Current Healthcare Cost
Trend Rates 1% Increase
(5.50% decreasing to

3.50%)
(6.50% decreasing to

4.50%)
(7.50% decreasing to

5.50%)
Net OPEB Liability 61, 737,849$ 72,432,509 $ 86,159,950 $

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

For the fiscal year ended June 30, 2022, the City recogniz ed OPEB expense of $6,373,955. As of fiscal year ended June 30, 2022, the City reported deferred outflows of re sources and deferred inflows of resources related to OPEB form the following sources:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Changes of Assumptions 786,800 $ (3,460,645) $ Difference between expected and actual experience 10,406,953 (23,918,507) Net difference between projected and actual earning on OPEB plan investments 215,941 - Total 11,409,694$ (27,379,152) $

The $11,409,694 reported as deferred outflows of resources and $27,379,152 reported as deferred inflows related to pensions will be recognized as pension expense as follows:

Fiscal Year
Ended June 30
Deferred
Outflows/(Inflows) of
Resources
2023 (405,193) $
2024 (1,131,446)
2025 (1,839,486)
2026 (1,799,220)
2027 (1,884,576)
Thereafter (8,909,537)
Total (15,969,458)$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA 118 Annual Comprehensive Financial Report | June 30, 2022 (22) Commitments and Contingencies
Primary Gover
nment
“Take or Pay” Contracts
The City’s ele
ctric operation has entered into various long term “Take or Pay” contracts to provide fo r current and future electri
c generating capacity and transmission of ener gy for City customers. The Ci ty is obligated to pay the amortized
cost of indebtedness regardless of the ability of the contracting agency to provide electricity and/or transmission, as applicable. Th e original indebtedness will be amortized by adding the financing costs to pur chase energy over the life of
the contract. The contracts expire at various times through fiscal year 2036. Th e total commitment
under these contracts as of June 30, 2022 is $113 million.

Additio
nal financial information on the SCPPA may be obtained by contacting the City of Pasadena Department of Water and Power at 150 South Los Robles, Suite 200, Pasadena, CA 91101.

Stran
ded Investments
In response to
California Assembly Bill 1890 (“AB1890”), the City chose to open its market to competition on January 1, 2000. The City has long-term contracts with IPA and SCPPA, most of which obligate the City to purchase power and/or services at cost, which was projected to be higher than market in a deregulated environment. As a result, the City was faced
with a “stranded investment” with a net present value estimated to be approximately $43.8 million in 2022. The Ci
ty has implemented the approved Stranded Investment Utilization Plan by direct defeasance of the debt service
of IPP outstanding bonds and mitigation of variable energy costs.

Additio
nal information related to IPA and SCPPA is available online from Water and Power Department’s website or may be obtained by contacting the department at 150 South Los Robles, Suite 200, Pasadena, CA 91101.

Lawsuits and Claims
A number of s
uits and claims are pending against the City arising in the normal course of operations. In the opinion of management, the results
of such legal actions will not have a material adverse effect on the financial position or results of operations of the City.

Other
Certain federal and state revenues are received for specif ic purposes and are subject to audit by the gran tor
agencies. City mana
gement is of the op inion that adjustments, if any, resulting fr om such audits will not be significant.

CITY OF PASADENA FINANCIAL SECTION NOTES TO THE BASIC FINANCIAL STATEMENTS Annual Comprehensive Financial Report | June 30, 2022 119 (23) Subsequent Events
Subse
quent events were evaluated through the date of the audit report.

Measure H – Charter Amendment Imposing Rent Control
On
November 8, 2022, Pasadena voters approved Measure H amending the City’s Charter imposing rent control on applicable residential rental
properties. The measure requires the establishment of an independent rental housing board appointed by the City Council to oversee and adopt rules and regulations. An impartial analysis of the charter amendment projected that implementation and first year operations would total $5.76 million, which the City is obligated
to advance. The rental housing board is responsible for establishing an annual rental housing fee charged to landlords to
support operations, and the City may be reimbursed when revenues generated by the rental housing board exceeds annual expenditures.

Measure L
– Library Services Parcel Tax
On N
ovember 8, 2022, Pasadena voters approved Measure L extending the Library Special Tax to fund library operations. The extension provides for continued colle ction of the special tax th rough fiscal year 2037 .

Approximatel
y, $3 million is generated annually from the tax and is adjusted annually by the Consumer Price Index as outline
d in Section 1.08.060 of the Pasadena Municipal Code. Additionally, to collect the tax the City must make an annual contribution, currently $12.2 million, from the General Fund to support Library operations. This amount also increases annually by the Consumer Price Index.
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ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022

REQUIRED SUPPLEMENTARY INFORMATION

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA 122 Annual Comprehensive Financial Report | June 30, 2022 (This page intentionally left blank)

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION

Annual Comprehensive Financial Report | June 30, 2022 123 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund
For the Fiscal Year Ended June 30, 2022

Better (Worse)
Adopted Final Actual Than Final Budget
Revenues:

Taxes 196,410,680 $ 204,574,041 $ 214,739,973 $ 10,165,932 $ Licenses and permits 3,389,205 3,389,205 3,940,945 551,740 Intergovernmental revenues 21,668,845 23,951,214 35,880,294 11,929,080 Charges for services 34,478,282 34,678,282 32,950,457 (1,727,825) Fines and forfeits 4,532,500 4,532,500 4,189,673 (342,827) Investment earnings 724,213 724,213 908,360 184,147 Net change in fair value of investments - - (5,492,911) (5,492,911) Lease revenues 738,910 738,910 974,320 235,410 Interest - leases (as lessor) - - 2,971 2,971 Miscellaneous revenues 2,720,494 2,720,494 4,261,946 1,541,452 Contributions 27,620 27,620 27,620 - Total revenues 264,690,749 275,336,479 292,383,648 17,047,169 Expenditures:

General government:

City Attorney 9,299,375 10,832,506 10,492,094 340,412 City Clerk 3,259,305 3,393,379 2,795,769 597,610 City Council 3,050,338 3,050,338 2,743,111 307,227 City Manager 5,765,979 5,905,979 5,030,994 874,985 Finance 13,427,614 13,427,614 12,937,057 490,557 Human Resources 4,660,614 5,585,614 4,498,169 1,087,445 Non-departmental 23,881,580 24,576,700 24,981,166 (404,466) Public safety:

Fire 55,29
4,880 55,494,880 55,480,461 14,419 Police 90,035,433 91,128,936 88,539,517 2,589,419 Transportation:

Public Works and Transportation 20,106,179 21,313,105 22,028,024 (714,919) Culture and leisure:

Human Services and Recreation 22,813,656 22,813,656 20,906,069 1,907,587 Non-departmental 8,476,565 10,076,565 11,548,087 (1,471,522) Community development:

Planning and Permitting 9,395,921 9,395,921 8,432,414 963,507 Capital outlay - - 37,658 (37,658) Debt Service:

Interest 9,504 9,504 - 9,504 Interest - leases (as lessee) - - 26,306 (26,306) Lease payments - - 592,259 (592,259) Total expenditures 269,476,944 277,004,697 271,069,155 5,961,848 Excess (deficiency) of revenues over (under)
expenditures (4,786,195) (1,668,218) 21,314,493 23,009,017 Other financing sources (uses):

Transfers in 20,140,438 20,140,438 20,288,374 147,936 Transfers out (25,682,904) (44,369,904) (34,079,764) 10,290,140 Transfers to component unit - (475,000) (408,262) 66,738 Leases issued - - 37,583 37,583 Total other financing sources (uses) (5,542,466) (24,704,466) (14,162,069) 10,542,397 Net change in fund balances (10,328,661) (26,372,685) 7,152,424 33,551,415 Fund balances at beginning
of year 99,063,289 99,063,289 99,063,289 - Fund balances at end of year 88,734,628$ 72,690,604$ 106,215,713$ 33,551,415$ Budget

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA 124 Annual Comprehensive Financial Report | June 30, 2022 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Housing Successor Fund
For the Fiscal Year Ended June 30, 2022
Better (Worse)
Original Final Actual Than Final Budget
Revenues:

Charges for services 400$ 400$ 55,362$ 54,962$ Net change in fair value of investments - - - - Lease revenues 63,301 63,301 61,741 (1,560) Miscellaneous revenues 118,453 118,453 220,971 102,518 Total revenues 182,154 182,154 344,582 162,428 Expenditures:

Current:

Community development 3,941,619 6,941,619 5,335,625 1,605,994 Total expenditures 3,941,619 6,941,619 5,335,625 1,605,994 Excess (deficiency) of revenues over (under)
expenditures (3,759,465) (6,759,465) (4,991,043) 1,768,422 Net change in fund balances (3,759,465) (6,759,465) (4,991,043) 1,768,422 Fund balance at beginning of year 6,883,870 6,883,870 6,883,870 - Fund balance at end of year 3,124,405$ 124,405$ 1,892,827$ 1,768,422$ Budget

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION

Annual Comprehensive Financial Report | June 30, 2022 125 Notes to the Required Supplementary Information

Budgets and Budgetary Data

The City Council is required to adopt an annual budget resolution by June 30 of each fiscal year. The budgets are adopted on a basis that does not differ materially from GAAP.

An appropriated annual budget is legally adopted for the General and Special Revenue Governmental Funds. Annual appropriated budgets are not adopted for Debt Service Funds because bond indentures are used as the method for adequate budgetary control. Some Capital Projects Funds have annual appropriated budgets. Control over some projects is maintained by means of an annual budget; others through a project-length capital improvement budget.

This project-length budget authorizes total expenditures ov er the duration of a construc tion project, rather than year by year.

The City maintains budgetary controls to ensure compliance with legal provisions embodied in the appropriated budget approved by the City Council. The level of budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) is the department level and within a single fund. The City Manager may authorize transfers of appropriations within a department so long as it is within a single fund . Supplemental appropriations during the year must be approved by the City Council. All unencumbered appropriations lapse at the end of the fiscal year. In order to be an encumbered appropriation there must be either an approved purchase order or contract in force as of June 30.

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA 126 Annual Comprehensive Financial Report | June 30, 2022 Schedule of Changes in the Net Pension Liability and Related Ratios CalPERS Pension Plans – Miscellaneous
Last Ten Fiscal Years1
Fiscal year ended June 30, 2022 June 30, 2021 June 30, 2020 Measurement period ended June 30, 2021 June 30, 2020 June 30, 2019 Total Pe nsion L iabilit y:

Service cost 19,875,637 $ 19,565,533$ 19,269,901$
Inte re st on t otal pe nsion liabilit y 84,479,928 81,858,875 79,378,592 Changes of benefits - - -
Changes of assumptions - - -
Difference between expected and actual experience (2,424,819) (3,981,645) 5,491,637 Benefit payments, including refunds of
employee contributions (63,657,472) (61,335,630) (58,915,135) Net Change in Total Pension Liability 38,273,274 36,107,133 45,224,995 Total Pe nsion L iabilit y - Be ginning of Ye ar 1,205,853,208 1,169,746,075 1,124,521,080 Total Pe nsion L iabilit y - End of Y e ar (a) 1,244,126,482$ 1,205,853,208$ 1,169,746,075$ Plan Fiduciary Net Position:

Contributions - employer 38,235,467$ 35,785,979$ 31,374,515$ Contributions - employee 9,264,874 8,895,269 8,840,701 Net investment income 199,470,910 42,241,867 53,457,806 Benefit payments, including refunds of
employee contributions (63,657,472) (61,335,630) (58,915,135) Net plan to plan resource movement - - -
Administrative expense (882,734) (1,211,394) (588,826) Other miscellaneous income/(expense) - - 1,921
Net Change in Plan Fiduciary Net Position 182,431,045 24,376,091 34,170,982 Plan Fiduciary Net Position - Beginning of Year 883,670,577 859,294,486 825,123,504 Plan Fiduciary Net Position - End of Year (b) 1,066,101,622$ 883,670,577$ 859,294,486$ Net Pension Liability - Ending (a)-(b) 178,024,860$ 322,182,631$ 310,451,589$ Plan fiduciary net position as a percentage of the
t otal pe nsion liabilit y 85.69% 73.28% 73.46%
Covered payroll 119,504,738$ 116,645,392$ 112,847,855$ Net pension liability as percentage of
covered payroll 148.97% 276.21% 275.11%
Notes to Schedule:

Benefit Changes:

Change s in A ssumpt ions:

From fiscal year June 30, 2015 to June 30, 2016:

For fiscal years ended 2016 and 2017:

There were no significant changes in assumptions.

For fiscal years ended 2017 and 2018:

The discount rate was reduced from 7.65% to 7.15%.

For fiscal years ended 2019, 2020, 2021 and 2022:

There were no significant changes in assumptions.
1 GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015. Additional years will be added as they become available in the future.

There were no changes in benefits.

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment exp ense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pensio n plan administrative expense.

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION

Annual Comprehensive Financial Report | June 30, 2022 127

June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 19,070,473$ 18,792,979$ 16,452,420$ 16,518,922$ 17,348,789$ 76,248,959 74,168,164 72,631,606 70,707,742 68,656,376 - - - - - (7,442,869) 59,447,425 - (16,681,849) - (3,022,702) (11,333,020) (13,975,158) (14,487,681) - (55,364,250) (51,700,328) (49,268,669) (46,870,745) (44,238,909) 29,489,611 89,375,220 25,840,199 9,186,389 41,766,256 1,095,031,469 1,005,656,249 979,816,050 970,629,661 928,863,405 1,124,521,080$ 1,095,031,469$ 1,005,656,249$ 979,816,050$ 970,629,661$ 27,112,138$ 24,681,004$ 22,252,101$ 19,682,618$ 18,058,021$ 8,823,902 8,903,856 8,658,628 8,503,246 10,977,440 66,083,117 80,076,002 3,806,528 16,554,269 111,123,445 (55,364,250) (51,700,328) (49,268,669) (46,870,745) (44,238,909) (1,921) (482) (207) 704 - (1,218,576) (1,064,667) (448,619) (828,526) (2,314,097) - - - - 43,120,313 60,895,385 (15,000,238) (2,958,434) 95,919,997 782,003,191 721,107,806 736,108,044 739,066,478 643,146,481 825,123,504$ 782,003,191$ 721,107,806$ 736,108,044$ 739,066,478$ 299,397,576$ 313,028,278$ 284,548,443$ 243,708,006$ 231,563,183$

73.38% 71.41% 71.71% 75.13% 76.14%
111,573,287$ 107,545,903$ 105,291,971$ 102,406,150$ 103,616,666$ 268.34% 291.06% 270.25% 237.98% 223.48%

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA 128 Annual Comprehensive Financial Report | June 30, 2022 Schedule of Contributions
CalPERS Pension Plans – Miscellaneous
Last Ten Fiscal Years1
Fiscal year ended 2022 2021 2020
A ctuarially de te rmine d contribution2 38,235,467$ 35,785,979$ 31,374,515$ Contributions in re lation to the actuarially
determined contribution (38,235,467) (35,785,979) (31,374,515) Contribution deficiency (excess) -$ -$ -$
Covered payroll 119,504,738$ 116,645,392$
Contributions as a percentage
of covered payroll 31.96% 29.95% 26.90%
Notes to Schedule:

Valuation date 6/30/2019 6/30/2018 6/30/2017
Methods and Assumptions Used to Determine Contribution Rates:

Actuarial cost method Entry age Entry age Entry age
A sse t valuation me thod Fair value Fair value Fair value Inflation 2.500% 2.625% 2.625%
Amortization method3
Salary incre ase s4
Investment rate of return5 7.00% 7.25% 7.25%
Retirement age6
Mortality 7
Notes to Schedule:
1 2
3 Level percentage of payroll, closed.
4 Dependi ng on age, servi ce, and type of empl oyment. 5 Net of pension plan investment expense, including inflation 6 7
GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015.

Additional years will be added as they become available in the future.

Empl oyers are assumed to make contributions equal to the actuarill y determined contributions. However, some empl oyers may choos e to make additional contributions towards the ir unfunde d liability. E mploye r contributions for such plans e xce e d the actuarially de te rmi ned contributions.

The probabilitie s of re tire me nt are base d on the most re ce nt CalPERS Expe rie nce Study adopte d by the CalPE RS Board.

Mortality assumptions are base d on mortality rate s re sulting from the most re ce nt CalPE RS Expe rie nce Study adopte d by the CalPERS Board. $ 119,630,194

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION Annual Comprehensive Financial Report | June 30, 2022 129 2019 2018 2017 2016 2015
27,112,138$ 24,681,004$ 22,252,101$ 19,682,618$ 18,058,021$ (27,112,138) (24,681,004) (22,252,101) (19,682,618) (18,058,021) -$ -$ -$ -$ -$
111,573,287$ 107,545,903$ 105,291,971$ 102,406,150$

24.03% 22.12% 20.69% 18.69% 17.63%
6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012
Entry age Entry age Entry age Entry age Entry age
Fair value Fair value Fair value 15 Year 15 Year
Smoothed Smoothed
Market Method Market Method

2.75% 2.75% 2.75% 2.75% 2.75%

7.375% 7.50% 7.50% 7.50% 7.50%
112,847,855$

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA 130 Annual Comprehensive Financial Report | June 30, 2022 Schedule of Changes in the Net Pension Liability and Related Ratios CalPERS Pension Plans – Safety
Last Ten Fiscal Years1
Fiscal year ended June 30, 2022 June 30, 2021 June 30, 2020 Measurement period June 30, 2021 June 30, 2020 June 30, 2019 Total Pe nsion L iabilit y:

Service cost 13,227,086$ 13,264,435$ 12,763,700$ Interest on total pension liability 50,129,704 47,906,317 45,653,513 Changes of benefit terms - - -
Changes of assumptions - - -
Difference between expected and actual experience 776,870 1,037,581 4,033,593 Benefit payments, including refunds of
employee contributions (32,147,195) (29,518,039) (26,876,788) Net Change in Total Pension Liability 31,986,465 32,690,294 35,574,018 Total Pension Liability - Beginning of Year 709,797,933 677,107,639 641,533,621 Total Pension Liability - End of Year (a) 741,784,398$ 709,797,933$ 677,107,639$ Plan Fiduciary Net Position:

Contributions - employer 23,383,968$ 21,823,026$ 19,187,119$ Contributions - employee 4,734,292 4,616,959 4,382,598 Net investment income 118,090,132 24,675,836 30,715,531 Benefit payments, including refunds of
employee contributions (32,147,195) (29,518,039) (26,876,788) Net plan to plan resource movement - - -
Administrative expense (518,021) (701,600) (335,831) Other miscellaneous income/(expense) - - 1,095
Net Change in Plan Fiduciary Net Position 113,543,176 20,896,182 27,073,724 Plan Fiduciary Net Position - Beginning of Year 518,571,412 497,675,230 470,601,506 Plan Fiduciary Net Position - End of Year (b) 632,114,588$ 518,571,412$ 497,675,230$ Net Pension Liability - Ending (a)-(b) 109,669,810$ 191,226,521$ 179,432,409$ Plan fiduciary net position as a percentage of the
total pension liability 85.22% 73.06% 73.50%
Covered payroll $ 47,997,014 47,456,523$ 46,443,734$ Ne t pe nsion liability as pe rce ntage of
covered payroll 228.49 % 402.95% 386.34%
Notes to Schedule:

Benefit Changes:

Changes in A ssumptions:

From fiscal year June 30, 2015 to June 30, 2016:

For fiscal years ended 2016 and 2017:

There were no significant changes in assumptions.

For fiscal years ended 2017 and 2018:

The discount rate was reduced from 7.65% to 7.15%.

For fiscal years ended 2019, 2020, 2021 and 2022:

There were no changes in benefits.

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION

Annual Comprehensive Financial Report | June 30, 2022 131

June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 12,756,843$ 12,323,779$ 10,508,643$ 10,701,701$ 11,182,155$ 43,215,347 41,004,210 39,393,555 37,307,299 35,798,456 - - - - - (994,610) 36,546,793 - (9,887,742) - 2,172,478 (7,057,346) (634,242) (8,454,840) - (24,941,212) (22,653,545) (20,870,861) (19,142,925) (16,923,959) 32,208,846 60,163,891 28,397,095 10,523,493 30,056,652 609,324,775 549,160,884 520,763,789 510,240,296 480,183,644 641,533,621$ 609,324,775$ 549,160,884$ 520,763,789$ 510,240,296$ 16,541,698$ 15,279,240$ 13,026,190$ 12,026,962$ 10,533,400$ 4,197,458 4,056,265 3,803,804 3,764,101 4,225,771 37,156,382 44,322,546 2,093,377 8,834,410 59,051,934 (24,941,212) (22,653,545) (20,870,861) (19,142,925) (16,923,959) (1,095) - 207 - - (685,071) (589,420) (244,639) (451,748) - (1,300,962) - - 684,181 - 30,967,198 40,415,086 (2,191,922) 5,714,981 56 ,887,146 439,634,308 399,219,222 401,411,144 395,696,163 338,809,017 470,601,506$ 439,634,308$ 399,219,222$ 401,411,144$ 395,696,163$ 170,932,115$ 169,690,467$ 149,941,662$ 119,352,645$ 114,544,133$

73.36% 72.15% 72.70% 77.08% 77.55%
44,887,069$ 41,527,930$ 41,141,713$ 41,013,280$ 34,243,101$ 380.80% 408.62% 364.45% 291.01% 334.50%

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA 132 Annual Comprehensive Financial Report | June 30, 2022 Schedule of Contributions
CalPERS Pension Plans – Safety
Last Ten Fiscal Years1
Fiscal year ended 2022 2021 2020
Actuari all y determi ned contributi on2 23,383,968$ 21,823,026$ 19,187,119$ Contributions in re lation to the actuarially
determined contribution (23,383,968) (21,823,026) (19,187,119) Contribution deficiency (excess) -$ -$ -$
Covered payroll $ 48,883,176 46,443,734$ $ 47,456,523 Contributions as a percentage
of covered payroll 47.84% 46.99% 40.43%
Notes to Schedule:

Valuation date 6/30/2019 6/30/2018 6/30/2017
Actuarial cost method Entry age Entry age Entry age
A sse t valuation me thod Fair value Fair value Fair value Inflation 2.500% 2.625% 2.625%
Amortization method3
Salary incre ase s4
Investment rate of return5 7.00% 7.25% 7.25%
Retirement age6
Mortality 7
Methods and Assumptions Used to
Determine Contribution Rates:

Notes to Schedule:
1 2
3 L e ve l pe rce ntage of payroll, close d.
4 Depending on age, service, and type of employment.
5 N e t of pe nsion plan inve stme nt e xpe nse , including inflation 6 7
GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015.

A dditional ye ars will be adde d as the y be com e available in the future .

Employers are assumed to make contributions equal to the actuarilly determined contributions. However, some employers may choos e to make additional contributions towards the ir unfunde d liability. Employe r contributions for such plans e xce e d the actuarially de te rmi ned contributions.

The probabilitie s of re tire m e nt are base d on the most re ce nt CalPERS E xpe rie nce Study adopte d by the CalPERS Board.

Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPE RS Board.

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION Annual Comprehensive Financial Report | June 30, 2022 133 2019 2018 2017 2016 2015
16,541,698$ 15,279,240$ 13,026,190$ 12,026,962$ 10,533,400$ (16,541,698) (15,279,240) (13,026,190) (12,026,962) (10,533,400) -$ -$ -$ -$ -$
$ 46,443,734 41,141,713$ $ $ 41,013,280$

35.62% 34.04% 31.37% 29.23% 25.68%
6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012
Entry age Entry age Entry age Entry age Entry age
Fair value Fair value 15 Year 15 Year 15 Year
Smoothed Smoothed Smoothed
Market Method Market Method Market Method

2.75% 2.75% 2.75% 2.75% 2.75%

7.375% 7.50% 7.50% 7.50% 7.50%
44,887,069 41,527,930

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA 134 Annual Comprehensive Financial Report | June 30, 2022 Fire and Police Retirement System
Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years1
Fiscal year ended June 30, 2022 June 30, 2021 June 30, 2020 Measurement period June 30, 2022 June 30, 2021 June 30, 2020 Total Pension Liability:

Interest on total pension liability 6,947,000 $ 7,335,000$ 7,600,000$ Differences between expected and actual experience 164,000 (1,798,000) 438,000 Changes of assumptions 4,447,000 - -
Changes of benefits - -
Benefit payments, including refunds of
employee contributions (12,072,000) (12,506,000) (12,773,000) Net Change in Total Pension Liability (514,000) (6,969,000) (4,735,000) Total Pension Liability - Beginning of Year 126,852,000 133,821,000 138,556,000 Total Pension Liability - End of Year (a) 126,338,000$ 126,852,000$ 133,821,000$ Plan Fiduciary Net Position:

Contributions - employer - $
-$
23,137,000$

Contributions - employee -
- -
Net investment income (10,612,000) 22,355,000 3,394,000 Benefit payments, including refunds of
employee contributions (12,072,000) (12,506,000) (12,773,000) Administrative expense (340,000) (327,000) (321,000) Net Change in Plan Fiduciary Net Position (23,024,000) 9,522,000 13,437,000 Plan Fiduciary Net Position - Beginning of Year 134,733,000 125,211,000 111,774,000 Plan Fiduciary Net Position - End of Year (b) 111,709,000$ 134,733,000$ 125,211,000$ Net Pension Liability - Ending (a)-(b) 14,629,000 $ (7,881,000)$ 8,610,000$ Plan fiduciary net position as a percentage of the
total pension liability 88.42% 106.21% 93.57%
Notes to Schedule:

Changes of Assumptions: Fiscal years ended 2019 through 2022 had no significant changes of assumptions.

June 30, 2018 assumption changes of $2,189,000 for change in the discount rate, from 6.50% in 2017 to 5.75% in 2018, and inflation rate, from 3.00% in 2017 to 2.75% in 2018. June 30, 2015 assumption changes of $1,895,000 for change in base mortality rates, $8,301,000 for change in mortality improvements scale, and ($7,055,000) for change in the discount rate.

GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fisal year ended June 30, 2015. Additional years will be added as they become available in the future.

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION

Annual Comprehensive Financial Report | June 30, 2022 135

June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 7,781,000$ 8,832,000 $ 9,272,000 $ 9,644,000 $ 9,162,000 $ 1,862,000 1,261,000 (3,081,000) (2,098,000) (3,075,000) - 2,189,000 - - 3,141,000 - - - - - (12,824,000) (12,815,000) (13,118,000) (13,448,000) (13,645,000) (3,181,000) (533,000) (6,927,000) (5,902,000) (4,417,000) 141,737,000 142,270,000 149,197,000 155,099,000 159,516,000 138,556,000$ 141,737,000$ 142,270,000$ 149,197,000$ 155,099,000$ -$ -$ -$ -$ -$ - - - - - 5,923,000 6,656,000 12,512,000 50,000 5,683,000 (12,824,000) (12,815,000) (13,118,000) (13,448,000) (13,645,000) (257,000) (272,000) (300,000) (302,000) (273,000) (7,158,000) (6,431,000) (906,000) (13,700,000) (8,235,000) 118,932,000 125,363,000 126,269,000 139,969,000 148,204,000 111,774,000$ 118,932,000$ 125,363,000$ 126,269,000$ 139,969,000$ 26,782,000$ 22,805,000$ 16,907,000$ 22,928,000$ 15,130,000$

80.67% 83.91% 88.12% 84.63% 90.24%

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA 136 Annual Comprehensive Financial Report | June 30, 2022 Fire and Police Retirement System
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years1
Actuarially Actual
Fi
scal Year Determined Fiscal Year Deficiency Covered
Ending Contribution* Contribution (Excess) Payroll
6/30/2022 -$
-$
-$
n/a
6/30/2021 - - - n/a
6/30/2020 3,478,000 23,137,000 (19,659,000) n/a
6/30/2019 - - - n/a
6/30/2018 - - - n/a
6/30/2017 - - - n/a
6/30/2016 - - - n/a
6/30/2015 - - - n/a
Note to Schedule:
1 * Actuarially determined contribution based on Board-adopted assumptions for use in preparing the valuation, a nd a
s required by applicable Contribution Agreement with the City. Additional years will be presented as they become available.

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION

Annual Comprehensive Financial Report | June 30, 2022 137 Schedule of Changes in the Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years1

Fiscal year ended 2022 2021 2020 2019 2018
Total OPEB Liability
Service cost 4,916,833 $ 4,253,500 $ 3,567,267 $ 3,216,534 $ 3,178,096 $ Interest on the total OPEB liability 2,181,093 2,364,686 2,560,523 2,596,030 2,447,926 Differences between expected and actual experience 874,222 (553,234) (7,575,879) - - Changes in assumptions (26,576,118) 6,723,752 11,111,122 3,664,587 (988,115) Benefit payments (2,833,350) (2,677,871) (2,815,139) (2,612,362) (2,391,366) Net change in Total OPEB Liability (21,437,320) 10,110,833 6,847,894 6,864,789 2,246,541 Total OPEB liability - beginning 96,085,460 85,974,627 79,126,733 72,261,944 70,015,403 Total OPEB liability - ending (a) 74,648,140$ 96,085,460$ 85,974,627$ 79,126,733$ 72,261,944$ Plan Fiduciary Net Position
Contribution - employer 2,833,350$ 2,677,871$ 2,815,139$ 2,612,362$ 4,391,366$ Net investment income (300,832) 311,987 101,072 133,177 2,193 Benefit payments (2,833,350) (2,677,871) (2,815,139) (2,612,362) (2,391,366) Administrative expense (5,241) (6,208) (10,840) (9,677) - Net change in plan fiduciary net position (306,073) 305,779 90,232 123,500 2,002,193 Plan fiduciary net position - beginning 2,521,704 2,215,925 2,125,693 2,002,193 - Plan fiduciary net position - ending (b) 2,215,631$ 2,521,704$ 2,215,925$ 2,125,693$ 2,002,193$ Net OPEB Liability/(Assets) - ending (a) - (b) 72,432,509$ 93,563,756$ 83,7 58,702$ 77,001,040$ 70,259,751$ Plan fiduciary net position as a percentage of the
total OPEB liability 2.97% 2.62% 2.58% 2.69% 2.77%
Covered - employee payroll 160,024,202$ 167,501,752 $ 164,101,914 $ 134,733,594 $ 130,809,315 $ Net OPEB Liability as percentage of covered-
employee payroll 45.3% 55.9% 51.0% 57.2% 53.7%

Note to Schedule:
1 GA SB State me nt No. 75, which re quire s te n ye ars of history for this sche dule , was im ple m e nte d during fiscal ye ar e nde d June 30, 2018. A dditional ye ars will be adde d as the y be com e available in the future.

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA 138 Annual Comprehensive Financial Report | June 30, 2022 Schedule of OPEB Plan Contributions
As of June 30, for the Last Ten Fiscal Years1
2022 2021 2020 2019 2018
2,833,350$ 2,677,871$ 2,815,139$ 2,612,362$ 2,391,366$ (2,833,350) (2,677,871) (2,815,139) (2,612,362) (4,391,366) -$ -$ -$ -$ (2,000,000)$
160,024,202$ 167,501,752$ 164,101,914$ 134,733,594$ 130,809,315$

1.77% 1.60% 1.72% 1.94% 1.83%
Covered employee payroll
Contributions as a percentage of covered-
empl oyee payrol l
Contractually determined contribution
Contribution in relation to the contractually
determined contributions
Contribution deficiency/(excess)
Note to Schedule:
1 GASB Statement No. 75, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2018. Additional years will be added as they become available in the future.

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION Annual Comprehensive Financial Report | June 30, 2022 139 Schedule of OPEB Plan Investment Returns
As of June 30, for the Last Ten Fiscal Years1
Fiscal year ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 -12.14% 13.80% 4.29% 6.15% 0.00%
Wei ghted average i nvestment
return rates
Note to Schedule:
1 GA SB State m e nt N o. 75, which re quire s te n ye ars of history for this sche dule , was imple me nte d during fiscal ye ar e nde d June 30, 2018. A dditional ye ars will be adde d as the y be come available in the future.
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ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022

SUPPLEMENTARY INFORMATION

NON-MAJOR GOVERNMENTAL FUNDS SUPPLEMEN TARY INFORMATION CITY OF PASADENA 142 Annual Comprehensive Financial Report | June 30, 2022 Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2022
Special 2015 Series A Ca pital
Revenue Refundin g COP Pro jects Permanent
Funds Debt Service Funds Funds Total
Assets:

P ooled c ash and inv est ment s 1 3 3,546,854$ - $ 19,811,115$ 2 ,017,855$ 155,375,824$ Accounts recei vable 18 ,137,876 - 77,589 6,541 18,222,006 Lease r ec eiv able 9 7 6,340 - - - 976,340
Prepaids and other assets 148,066 - - - 148,066 Notes receivable 58,023,672 - - - 58 ,023,672
Allowanc e for unc ollec tible lon g-term receivables (58,023,672) - - - (58,023,672) Re
stricted assets:

C ash and inv est ment s 3,346,546 7,083,750 - - 10 ,430,296 Cash with fiscal a gent 3,540 - - - 3,540 Pro perty held for resale 560,996 - - - 560,996 Total assets 156,720,218 7,083,750 19,888,704 2,024,396 185,717,068 Liabilities, deferred inflow of resources and
fund balances:

Liabilities:

Accounts payable and accrued liabilities 4,919,285 - - - 4,919,285 De posits 1,561,930 - - - 1,561,930
Due to other funds 9,938,684 - - - 9,938,684 Unearned revenue 2,612,773 - - - 2,612,773 Total liabilities 19,032,672 - - - 19 ,032,672 Deferred inflows of resources:

Unavailable revenues 9,067,520 - - - 9,067,520 Leas e rel a ted 960,333 - - - 960,333
Total deferred inflow of resources 10,027,853 - - - 10 ,027,853 Fund balances:

Nons pendable 148,066 - - 1,434,131 1,582,197 Restricted 52,843,785 7,083,750 1,877,674 536,019 62,341,228 Commi tte d 84,147,727 - 18,011,030 54,246 102,213,003 Unassi gned (9,479,885) - - - (9,479,885)
T
otal fund balances 127,659,693 7,083,750 19,888,704 2,024,396 156,656,543 Total liabilities, deferred inflow of resources and
fund balances 156,720,218$ 7,083,750$ 19,888,704$ 2,024,396$ 185,717,068$

CITY OF PASADENA SUPPLEMENTARY INFORMATION NON-MAJOR GOVERNMENTAL FUNDS Annual Comprehensive Financial Report | June 30, 2022 143 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2022

Special 2015 Series A Ca pital
Revenue Refundin g COP Projects Permanent
Funds Debt Service Funds Funds Total
Revenues:

Taxes 11 ,158,765$ - $ - $ - $ 11 ,158,765$ Licenses and permits 11,342,539 - - - 11 ,342,539 Inter governmental revenues 65,826,329 - - - 65 ,826,329 Cha rges for s ervi ces 10,330,604 - 161 ,098 - 10 ,491,702 Inv estment earnin gs1 ,021,066 - 217 ,368 16 ,380 1 ,254,814 Net chan ge in fair v alue of inv estments (6,779,516) (1,124,781) (1,339,826) (107,230) (9,351,353) Lease revenues 3 ,179,161 - - - 3 ,179,161 Interest - leases (as lessor ) 5,635 - - - 5 ,635 Miscellaneous revenues 3 ,743,212 - 639 - 3 ,743,851 Contributions 1 ,031,501 - 1 ,284,722 - 2 ,316,223 Total revenues 100,859,296 (1,124,781) 324,001 (90,850) 99,967,666 Expenditures:

Current:

General government - 3,600 100 ,217 - 103 ,817 P ublic safet y 2,628,949 - - - 2 ,628,949 Trans porta tion 14,806,908 - - - 14 ,806,908 Utilit y 124,195 - - - 124 ,195 Sanitation 4 ,825,470 - - - 4 ,825,470 Health 16 ,505,189 - - - 16 ,505,189 Culture and leisure 13 ,341,727 - - - 13 ,341,727 Communit y develo pment 41,883,327 - - - 41 ,883,327 Capital outla y 19,079 - - - 19 ,079 Debt service:

Pri ncipa l reti rement 300,000 2 ,090,000 - - 2 ,390,000 Interes t 131 ,748 2 ,205,150 - - 2 ,336,898 Interest - leases (as lessee ) 5,730 - - - 5 ,730 Leas e payments 511,437 - - - 511 ,437 Total expenditures 95,083,759 4 ,298,750 100 ,217 - 99 ,482,726 Excess (deficiency) of revenues over
(under) expenditures 5,775,537 (5,423,531) 223,784 (90,850) 484,940 Other financing sources (uses):

Transfers in 14 ,775,193 4 ,298,750 - - 19 ,073,943 Transfers out (19,557,342) - (10,901,243) - (30,458,585) Leases issued 19 ,079 - - - 19 ,079 Total other financing sources (uses) (4,763,070) 4,298,750 (10,901,243) - (11,365,563) Net change in fund balances 1,012,467 (1,124,781) (10,677,459) (90,850) (10,880,623) Fund balances at beginning of year 126,647,226 8,208,531 30,566,163 2,115,246 167,537,166 Fund balances at end of year 127,659,693$ 7,083,750$ 19,888,704$ 2,024,396$ 156,656,543$ (This page intentionally left blank)
ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022

SPECIAL REVENUE FUNDS

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CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS

Annual Comprehensive Financial Report | June 30, 2022 147

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

Special revenue funds are used to account for specific revenue s that are legally restricted to expenditure for particular purposes. 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. If that occurs, amount assigned to other purposes in that fund should be reduced to eliminate the deficit.

If the remaining deficit eliminates all other assigned amounts in the fund, or if there are no amounts assigned to other purposes, the negative residual amount should be classified as unassigned fund balance.

Public Safety Fund - to account for revenue received from State AB3229 funds, the 1/2-cent sales tax approved by the voters in November 1993, money received by the Police Department from forfeited cash and other tangible property seized under the Federal Comprehensive Crime Control Act of 1984 and grants received from the Homeland Security Grant Program.

Health Fund - to account for all grants received for the provision of health services which are restricted by grant award agreements.

Building Services Fund - to account for fees collected and restricted to the operations of the Permit Center.

Sewer Construction and Maintenance Fund - to account for revenue received from sewer use and storm drain charges restricted for the construction and maintenance of the City's sewer system. This includes the use of revenue derived from a special parcel tax (Measure W) approved by voters for improving water quality, recapturing, treating, and recycling stormwater in Los Angeles County.

Underground Utilities Fund - to account for revenue received fr om the underground surtax on sales of electric energy restricted for the extension, conversion, replacement and repair of underground utility lines.

Transportation Fund - to account for the use of revenue derived from the 1/2-cent sales tax approved by voters, state gasoline tax, sales tax collected for bikeways and pedestrian facilities, and State AB2928 traffic congestion relief, all of which are restricted for construction, maintenance, preservation and rehabilitation of the City’s street and road system.

Library Fund - to account for the operations of the City's public libraries and the library special tax approved by the voters on June 22, 1993 and restricted for Library use.

Parking Fund - to account for revenue derived from on-off street parking, zoning credits, parking and business improvement tax, parking space rental and leases, and on-street parking meters. These funds are restricted for use in the various enterprise zones of the City.

Air Quality Improvement Fund - to account for the use of revenue derived from a fee added to the motor vehicle registration fee for reducing air pollution in accordance with the California Government Code (AB2766).

Housing and Community Development Fund - to account for the use of Community Development Block Grant and other U.S.

Department of Housing and Urban Development programs restricted for housing and community development.

Donated Funds - to account for principal and interest on funds donated to the City for expressed and expendable purposes.

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA 148 Annual Comprehensive Financial Report | June 30, 2022 Combining Balance Sheet
Non-Major Governmental Funds
Special Revenue Funds
June 30, 2022
Sewer
Construction
Public Buildin g and Underground
Safety Health Services Maintenance Utilities
Assets:

C ash and inv estment s 4,506,393$ -$ 18,324,139$ 13,537,156$ 36,860,184$ Ac c ounts r ec eiv able 4 9 5 ,412 4,583,680 192,558 756,731 883,896 Lease r ec eiv able - 976,340 - - -
Prepaids and other assets - 13,030 - - -
Notes r ec eiv able - - - - -
Allowance for uncollectible long-ter m
r ec eiv ables - - - - -
Restricted assets:

Cash and investments - - - - -
Cash with fiscal a gent - 3,540 - - -
Property held for resale - - - - -
Total assets 5,001,805 5,576,590 18,516,697 14,293,887 37,744,080 Liabilities, deferred inflow of resources
and fund balances:

Liabilities:

Acc ounts pay able and acc r ued liabilities 2 6 ,5 5 0 727,656 323,342 45,459 - Deposits - 1,465 939,015 - -
Due to other funds - 8,475,653 - - 1,463,031 Unearned rev enue - 258,455 701,543 - -
Total liabilities 26,550 9,463,229 1,963,900 45,459 1,463,031 Deferred inflows of resources:

Unavailable revenues 88,460 2,369,133 34,917 - - Leas e related - 960,333 - - -
Total deferred inflows of resources 88,460 3,329,466 34,917 - - Fund balances:

Nons pendable - 13,030 - - -
Restricted 4,886,795 - - - -
Committed - - 16,517,880 14,248,428 36,281,049 Unassi gned - (7,229,135) - - -
Total fund balances (deficit) 4,886,795 (7,216,105) 1 6,517,880 14,248,428 36,281,049 Total liabilities, deferred inflow of resources
and fund balances 5,001,805$ 5,576,590$ 18,516,697$ 14,293,887$ 37,744,080$

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS Annual Comprehensive Financial Report | June 30, 2022 149

Housing and
Air Quality Community Donated
Transportation Librar y Parking Improvement Develo pment Funds Total 32,013,183$ 13 ,017,399$ 4 ,009,818$ 114 ,981$ 7 ,434,119$ 3 ,729,482$ 133 ,546,854$ 3,152,408 143 ,369 111 ,062 48 ,003 7 ,766,724 4 ,033 18 ,137,876 - - - - - - 976 ,340 - - - - 135 ,036 - 148 ,066 - - - - 58 ,023,672 - 58 ,023,672 - - - - (58,023,672) - (58,023,672) - - - - 3 ,346,546 - 3 ,346,546 - - - - - - 3 ,540 - - - - 560 ,996 - 560 ,996 35,165,591 13 ,160,768 4 ,120,880 162 ,984 19 ,243,421 3 ,733,515 156 ,720,218 1,447,226 121,587 58,341 3,020 2,072,931 93,173 4,919,285 - 1,350 - - 1,000 619,100 1,561,930 - - - - - - 9,938,684 - - - - 1,652,775 - 2,612,773 1,447,226 122 ,937 58 ,341 3 ,020 3 ,726,706 712 ,273 19 ,032,672 40,107 - - 47 ,791 6 ,487,112 - 9 ,067,520 - - - - - - 960 ,333 40,107 - - 47 ,791 6 ,487,112 - 10 ,027,853 - - - - 135 ,036 - 148 ,066 33,678,258 - - 112 ,173 11 ,145,317 3 ,021,242 52 ,843,785 - 13 ,037,831 4 ,062,539 - - - 84 ,147,727 - - - - (2,250,750) - (9,479,885) 33,678,258 13 ,037,831 4 ,062,539 112 ,173 9 ,029,603 3 ,021,242 127 ,659,693 35,165,591$ 13,160,768 $ 4,120,880 $ 162,984 $ 19,243,421 $ 3,733,515 $ 156,720,218 $

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA 150 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
Special Revenue Funds
For the Fiscal Year Ended June 30, 2022
Sewer
Construction
Public Buildin g and Underground
Safety Health Services Maintenance Utilities
Revenues:

Taxes -$
1,072,497$ -$ 1,194,953$ 6,044,849$
Licenses a nd permits - 1,426,883 9,915,656 - -
Inter gov ernmental rev enues 4,738,478 10,982,267 302,922 - - Cha rges for serv ices - 473,609 1,410,203 7,301,252 - Inv estment earnin gs1 9,435 104 133,052 95,195 326,579 Net cha nge in fa ir va l ue of i nves tments (124,792) - (887,897) (631,796) (2,204,101) Lease revenues - 267,395 - - -
Interest - leases (as lessor ) - 5,635 - - -
M isc ellaneous r ev enues - 94,413 44,977 - 245
Contributions - - - - -
Total revenues 4,633,121 14,322,803 10,918,913 7,959,604 4,167,572 Expenditures:

Current:

Public safet y 2,628,949 - - - -
Trans portation - - - - -
Utilit y - - - - 124,195
Sanitation - - - 4,825,470 -
Health - 16 ,505,189 - - -
Culture and leisure - - - - -
Communit y develo pment - - 9 ,260,762 - -
Capital outla y - - - - -
Debt service:

Pri ncipa l reti rement - - - - -
Interest -
- - - -
Interest - leases (as lessee ) - - - - -
Lease payments - - - - -
Total expenditures 2,628,949 16,505,189 9,260,762 4,825,470 124,195 Excess (deficiency) of revenues over (under)
expenditures 2,004,172 (2,182,386) 1,658,151 3,134,134 4,043,377 Other financing sources (uses):

Transfers in - 1,081,813 - - -
Transfers out (805,198) - (243,386) (2,767,099) (8,439,463) Le
ases i ss ued - - - - -
Total other financing sources (uses) (805,198) 1,081,813 (243,386) (2,767,099) (8,439,463) Ne
t change in fund balances 1,198,974 (1,100,573) 1,414,765 367,035 (4,396,086) F
und balances (deficit ) at beginnin g of year 3,687,821 (6,115,532) 1 5,103,115 13,881,393 40,677,135 Fund balances (deficit) at end of year 4,886,795$ (7,216,105)$ 16,517,880$ 14,248,428$ 36,281,049$

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS Annual Comprehensive Financial Report | June 30, 2022 151

Housing and
Air Qualit y Community Donated
Transportation Librar y Parking Improvement Develo pment Funds Total -$ 2,834,404$ 12 ,062$ - $ - $ - $ 11 ,158,765$ - - - - - - 11,342,539 21,323,045 2 ,128,040 - 139 ,995 26 ,211,582 - 65 ,826,329 1,034,850 3 ,822 99 ,973 - 6 ,895 - 10 ,330,604 251,006 80 ,442 28 ,365 1 ,105 58 ,613 27 ,170 1 ,021,066 (1,717,921) (522,342) (185,725) - (324,793) (180,149) (6,779,516) - 38 ,260 2 ,858,630 - 14 ,876 - 3 ,179,161 - - - - - - 5 ,635 1,037,837 102 572 - 2 ,565,066 - 3 ,743,212 - 56 ,305 - - - 975 ,196 1 ,031,501 21,928,817 4 ,619,033 2 ,813,877 141 ,100 28 ,532,239 822 ,217 100 ,859,296 - - - - - - 2 ,628,949 12,582,378 - 2 ,078,518 146 ,012 - - 14 ,806,908 - - - - - - 124 ,195 - - - - - - 4,825,470 - - - - - - 16 ,505,189 - 13 ,004,873 - - - 336 ,854 13 ,341,727 - - - - 32 ,622,565 - 41 ,883,327 - - 19,079 - - - 19,079 - - - - 300 ,000 - 300 ,000 - - - - 131 ,748 - 131 ,748 57 225 23 - 5 ,425 - 5 ,730 49,480 148 ,483 8 ,949 - 304 ,525 - 511 ,437 12,631,915 13 ,153,581 2 ,106,569 146 ,012 33 ,364,263 336 ,854 95 ,083,759 9,296,902 (8,534,548) 707,308 (4,912) (4,832,024) 485,363 5,775,537 384,456 11 ,802,558 188 ,000 - 1 ,318,366 - 14 ,775,193 (6,290,365) (1,399) (145,834) - (864,598) - (19,557,342) - - 19,079 - - - 19,079 (5,905,909) 11,801,159 61 ,245 - 453 ,768 - (4,763,070) 3,390,993 3 ,266,611 768 ,553 (4,912) (4,378,256) 485,363 1 ,012,467 30,287,265 9 ,771,220 3 ,293,986 117 ,085 13 ,407,859 2 ,535,879 126 ,647,226 33,678,258$ 13,037,831 $ 4,062,539 $ 112,173 $ 9,029,603 $ 3,021,242 $ 127,659,693 $

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA 152 Annual Comprehensive Financial Report | June 30, 2022 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Public Safety Fund
For the Fiscal Year Ended June 30, 2022

Better (Worse)
Adopted Final Actual Than Final Bud get
Revenues:

Inter gov ernmental rev enues 2,121,900$ 2 ,688,304$ 4 ,738,478$ 2 ,050,174$ Inv estment earnin gs2 0,070 20 ,070 19 ,435 (635) Net chan ge in fair v alue of inv estments - - (124,792) (124,792) Total revenues 2,141,970 2,708,374 4,633,121 1,924,747 Expenditures:

Current:

P ublic safet y 2,822,019 3 ,808,423 2 ,628,949 1 ,179,474 Total expenditures 2,822,019 3,808,423 2,628,949 1,179,474 Excess (deficiency) of revenues
over (under) expenditures (680,049) (1,100,049) 2,004,172 3,104,221 Other financing sources (uses):

Transfers out - (1,300,000) (805,198) 494,802 Total other financing sources (uses) - (1,300,000) (805,198) 494,802 Net change in fund balances (680,049) (2,400,049) 1,198,974 3 ,599,023 Fund balance at be ginnin g of year 3,687,821 3 ,687,821 3 ,687,821 - Fund balance at end of year 3,007,772$ 1,287,772$ 4,886,795$ 3,599,023$ Budget

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS Annual Comprehensive Financial Report | June 30, 2022 153 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Health Fund
For the Fiscal Year Ended June 30, 2022

Better (Worse)
Adopted Final Actual Than Final Bud get
Revenues:

Taxes 804 ,075$ 804 ,075$ 1 ,072,497$ 268 ,422$ Licenses and permits 1,871,834 1 ,871,834 1 ,426,883 (444,951) Inter governmental revenues 16,870,353 17 ,857,521 10 ,982,267 (6,875,254) Cha rges for s ervi ces 518,250 518 ,250 473 ,609 (44,641) Inv estment earnin gs- - 104 104 Lease rev enues 217 ,578 217 ,578 267 ,395 49 ,817 Interest - leases (as lessor ) - - 5,635 5 ,635 Miscellaneous revenues - - 94 ,413 94 ,413 Total revenues 20,282,090 21 ,269,258 14 ,322,803 (6,946,455) Expenditures:

Current:

Health 19 ,814,804 21 ,051,266 16 ,505,189 4 ,546,077 Debt service:

Leas e payments 25,000 25 ,000 - 25 ,000 Total expenditures 19,839,804 21 ,076,266 16 ,505,189 4 ,571,077 Excess (deficiency) of revenues
over (under) expenditures 442,286 192,992 (2,182,386) (2,375,378) Other financing sources:

Transfers in 610 ,541 1 ,166,813 1 ,081,813 (85,000) Interest - leases (as lessee ) - - - - Total other financing sources 610,541 1 ,166,813 1 ,081,813 (85,000) Net change in fund balances 1,052,827 1 ,359,805 (1,100,573) (2,460,378) Fund balanc e (defic it) at
beginning of year (6,115,532) (6,115,532) (6,115,532) - Fund balance (deficit) at end of year (5,062,705)$ (4,755,727)$ (7,216,105)$ (2,460,378)$ Budget

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA 154 Annual Comprehensive Financial Report | June 30, 2022 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Building Services Fund
For the Fiscal Year Ended June 30, 2022
Better (Worse)
Adopted Final Actual Than Final Bud get
Revenues:

Licenses and permits 6,624,000$ 6,624,000$ 9,915,656$ 3,291,656$ Inter governmental revenues - - 302,922 302,922 Cha rges for s ervi ces 1,710,000 1,710,000 1,410,203 (299,797) In
v estment earnin gs1 34,600 134,600 133,052 (1,548) Ne
t chan ge in fair v alue of inv estments - - (887,897) (887,897) M
iscellaneous revenues 54,000 54,000 44,977 (9,023) To
tal revenues 8,522,600 8,522,600 10,918,913 2,396,313 Expenditures:

Current:

Communit y develo pment 11,622,843 11,622,843 9,260,762 2,362,081 Total expenditures 11,622,843 11,622,843 9,260,762 2,362,081 Excess (deficiency) of revenues
over (under) expenditures (3,100,243) (3,100,243) 1,658,151 4,758,394 Other financing sources (uses):

Transfers out - (50,000) (243,386) (193,386)
T
otal other financing sources (uses) - (50,000) (243,386) (193,386) Ne
t change in fund balances (3,100,243) (3,150,243) 1,414,765 4,565,008 Fund balance at beginning of year 15,103,115 15,103,115 15,103,115 - Fund balance at end of year 12,002,872$ 11,952,872$ 16,517,880$ 4,565,008$ Budget

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS Annual Comprehensive Financial Report | June 30, 2022 155 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Sewer Construction and Maintenance Fund
For the Fiscal Year Ended June 30, 2022

Better (Worse)
Adopted Final Actual Than Final Bud get
Revenues:

Taxes - $ - $ 1 ,194,953$ 1 ,194,953$ Inter gov ernmental rev enues - - - - Cha rges for s ervi ces 7,517,263 7 ,517,263 7 ,301,252 (216,011) Inv estment earnin gs9 3,845 93 ,845 95 ,195 1 ,350 Net chan ge in fair v alue of inv estments - - (631,796) (631,796) Total revenues 7,611,108 7 ,611,108 7 ,959,604 348 ,496 Expenditures:

Current:

Sanitation 4 ,864,794 4 ,925,244 4 ,825,470 99 ,774 Debt service:

Lea se payments 736 736 - 736 Total expenditures 4,865,530 4 ,925,980 4 ,825,470 100 ,510 Excess (deficiency) of revenues
over (under) expenditures 2,745,578 2,685,128 3,134,134 449,006 Other financing sources (uses):

Transfers out - (11,257,166) (2,767,099) 8,490,067 Total other financing sources (uses) - (11,257,166) (2,767,099) 8,490,067 Net change in fund balances 2,745,578 (8,572,038) 367,035 8 ,939,073 Fund balance at be ginnin g of year 13,881,393 13 ,881,393 13 ,881,393 - Fund balance at end of year 16,626,971$ 5,309,355 $ 14,248,428 $ 8,939,073 $ Budget

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA 156 Annual Comprehensive Financial Report | June 30, 2022 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Underground Utilities Fund
For the Fiscal Year Ended June 30, 2022

Better (Worse)
Adopted Final Actual Than Final Bud get
Revenues:

Taxes 5 ,700,000$ 5 ,700,000$ 6 ,044,849$ 344 ,849$ Inv estment earnin gs 353,885 353 ,885 326 ,579 (27,306) Net chan ge in fair v alue of inv estments - - (2,204,101) (2,204,101) M isc ellaneous r ev enues - - 245 245 Total revenues 6,053,885 6 ,053,885 4 ,167,572 (1,886,313) Expenditures:

Current:

Utilit y 124,195 124 ,195 124 ,195 - Total expenditures 124,195 124 ,195 124 ,195 - Excess (deficiency) of revenues
over (under) expenditures 5,929,690 5,929,690 4,043,377 (1,886,313) Other financing sources (uses):

Transfers out (3,545,460) (4,045,460) (8,439,463) (4,394,003) Total other financing sources (uses) (3,545,460) (4,045,460) (8,439,463) (4,394,003) Net change in fund balances 2,384,230 1 ,884,230 (4,396,086) (6,280,316) Fund balance at be ginnin g of yea r 40,677,135 40 ,677,135 40 ,677,135 - Fund balance at end of year 43,061,365$ 42,561,365 $ 36,281,049 $ (6,280,316) $ Budget

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS Annual Comprehensive Financial Report | June 30, 2022 157 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Transportation Fund
For the Fiscal Year Ended June 30, 2022

Better (Worse)
Adopted Final Actual Than Final Bud get
Revenues:

Inter governmental revenues 17,150,057$ 20 ,077,527$ 21 ,323,045$ 1 ,245,518$ Cha rges for s ervi ces 1,042,050 1 ,042,050 1 ,034,850 (7,200) Inv estment earnin gs1 97,456 197 ,456 251 ,006 53 ,550 Net chan ge in fair v alue of inv estments - - (1,717,921) (1,717,921) Miscellaneous revenues 1 ,023,000 1 ,023,000 1 ,037,837 14 ,837 Total revenues 19,412,562 22 ,340,032 21 ,928,817 (411,215) Expenditures:

Current:

Trans porta tion 13,245,552 13 ,917,966 12 ,582,378 1 ,335,588 Debt service:

Interest - leases (as lessee ) - - 57 (57) Lea s e payments - - 49,480 (49,480) Total expenditures 13,245,552 13 ,917,966 12 ,631,915 1 ,286,051 Excess (deficiency) of revenues
over (under) expenditures 6,167,010 8,422,066 9,296,902 874,836 Other financing sources (uses):

Transfers in 378 ,994 719 ,402 384 ,456 (334,946) Transfers out (5,400) (5,236,342) (6,290,365) (1,054,023) Total other financing sources (uses) 373,594 (4,516,940) (5,905,909) (1,388,969) Net change in fund balances 6,540,604 3 ,905,126 3 ,390,993 (514,133) Fund balance at be ginnin g of year 30,287,265 30 ,287,265 30 ,287,265 - Fund balance at end of year 36,827,869$ 34,192,391 $ 33,678,258 $ (514,133) $ Budget

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA 158 Annual Comprehensive Financial Report | June 30, 2022 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Library Services Fund
For the Fiscal Year Ended June 30, 2022

Better (Worse)
Adopted Final Actual Than Final Bud get
Revenues:

Taxes 2 ,816,080$ 2 ,816,080$ 2 ,834,404$ 18 ,324$ Inter gov ernmental rev enues - 87,700 2 ,128,040 2 ,040,340 Cha rges for s ervi ces 35,000 35 ,000 3 ,822 (31,178) Inv estment earnin gs6 1,552 61 ,552 80 ,442 18 ,890 Net chan ge in fair v alue of inv estments - - (522,342) (522,342) Lea s e revenues 35 ,000 35 ,000 38 ,260 3 ,260 M isc ellaneous r ev enues 6 ,650 6 ,650 102 (6,548) Contri buti ons 57 ,150 97 ,150 56 ,305 (40,845) Total revenues 3,011,432 3 ,139,132 4 ,619,033 1 ,479,901 Expenditures:

Current:

C ultur e and leisur e 1 5 ,446,389 15 ,635,126 13 ,004,873 2 ,630,253 Debt service:

Interest - leases (as lessee ) - - 225 (225) Lea s e payments - - 148,483 (148,483) Total expenditures 15,446,389 15 ,635,126 13 ,153,581 2 ,481,545 Excess (deficiency) of revenues
over (under) expenditures (12,434,958) (12,495,994) (8,534,548) 3,961,446 Other financing sources (uses):

Transfers in 11 ,802,558 11 ,802,558 11 ,802,558 - Transfers out (85,000) (85,000) (1,399) 83,601 Total other financing sources (uses) 11,717,558 11 ,717,558 11 ,801,159 83 ,601 Net change in fund balances (717,400) (778,436) 3,266,611 4 ,045,047 Fund balance at be ginnin g of year 9,771,220 9 ,771,220 9 ,771,220 - Fund balance at end of year 9,053,820$ 8,992,784 $ 13,037,831 $ 4,045,047 $ Budget

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS Annual Comprehensive Financial Report | June 30, 2022 159 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Parking Fund
For the Fiscal Year Ended June 30, 2022

Better (Worse)
Adopted Final Actual Than Final Bud get
Revenues:

Taxes 14 ,000$ 14 ,000$ 12 ,062$ (1,938)$ Cha rge s for s ervi ces 60,000 60 ,000 99 ,973 39 ,973 Inv estment earnin gs2 1,700 21 ,700 28 ,365 6 ,665 Net chan ge in fair v alue of inv estments - - (185,725) (185,725) Leas e revenues 2 ,641,375 2 ,641,375 2 ,858,630 217 ,255 M isc ellaneous r ev enues 2 ,000 2 ,000 572 (1,428) Total revenues 2,739,075 2 ,739,075 2 ,813,877 74 ,802 Expenditures:

Current:

Trans portation 2,997,822 3 ,017,822 2 ,078,518 939 ,304 Capit al out la y - - 19 ,079 (19,079) Debt service:

Interest - leases (as lessee ) - - 23 (23) Leas e payments - - 8,949 (8,949) Total expenditures 2,997,822 3 ,017,822 2 ,106,569 911 ,253 Excess (deficiency) of revenues
over (under) expenditures (258,748) (278,748) 707,308 986,056 Other financing sources (uses):

Transfers in - 188 ,000 188 ,000 - Transfers out (5,200) (633,199) (145,834) 487,365 L eases issued - - 19 ,079 19 ,079 Total other financing sources (uses) (5,200) (445,199) 61,245 506 ,444 Net change in fund balances (263,948) (723,947) 768,553 1 ,492,500 Fund balance at be ginnin g of year 3,293,986 3 ,293,986 3 ,293,986 - Fund balance at end of year 3,030,038$ 2,570,039 $ 4,062,539 $ 1,492,500 $ Budget

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA 160 Annual Comprehensive Financial Report | June 30, 2022 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Air Quality Improvement Fund
For the Fiscal Year Ended June 30, 2022
Better (Worse)
Adopted Final Actual Than Final Bud get
Revenues:

Inter gov ernmental rev enues 170,000$ 170,000$ 139,995$ (30,005)$ Inv estment earnin gs2 ,131 2,131 1,105 (1,026) T
otal revenues 172,131 172,131 141,100 (31,031) Expenditures:

Current:

Trans porta ti on 172,388 172,388 146,012 26,376 Total expenditures 172,388 172,388 146,012 26,376 Net change in fund balances (257) (257) (4,912) (4,655) F
und balance at be ginnin g of year 117,085 117,085 117,085 - Fund balance at end of year 116,828$ 116,828$ 112,173$ (4,655)$ Budget

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS Annual Comprehensive Financial Report | June 30, 2022 161 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Housing and Community Development Fund
For the Fiscal Year Ended June 30, 2022

Better (Worse)
Adopted Final Actual Than Final Bud get
Revenues:

Inter gov ernmental rev enues 26,943,508$ 28 ,316,441$ 26 ,211,582$ (2,104,859)$ Cha rge s for s e rvi ce s 800 800 6,895 6 ,095 Inv estment earnin gs7 8,591 78 ,591 58 ,613 (19,978) Net chan ge in fair v alue of inv estments - - (324,793) (324,793) Lea s e revenues 91 ,100 91 ,100 14 ,876 (76,224) M isc ellaneous r ev enues 3 ,061,486 3 ,061,486 2 ,565,066 (496,420) Total revenues 30,175,485 31 ,548,418 28 ,532,239 (3,016,179) Expenditures:

Current:

Communit y develo pment 35,965,367 42 ,915,656 32 ,622,565 10 ,293,091 Debt service:

Pri ncipa l reti rement 300,000 300 ,000 300 ,000 - Interes t 140 ,000 140 ,000 131 ,748 8 ,252 Interest - leases (as lessee ) - - 5 ,425 (5,425) Leas e payments - - 304,525 (304,525) Total expenditures 36,405,367 43 ,355,656 33 ,364,263 9 ,991,393 Excess (deficiency) of revenues
over (under) expenditures (6,229,882) (11,807,238) (4,832,024) 6,975,214 Other financing sources (uses):

Transfers in 1 ,474,638 1 ,798,366 1 ,318,366 (480,000) Transfers out - (72,837) (864,598) (791,761) Leas es is s ued - - - - Total other financing sources (uses) 1,474,638 1 ,725,529 453 ,768 (1,271,761) Net change in fund balances (4,755,244) (10,081,709) (4,378,256) 5,703,453 Fund balances at be ginnin g of year 13,407,859 13 ,407,859 13 ,407,859 - Fund balance at end of year 8,652,615$ 3,326,150 $ 9,029,603 $ 5,703,453 $ Budget

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA 162 Annual Comprehensive Financial Report | June 30, 2022 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Donated Fund
For the Fiscal Year Ended June 30, 2022
Better (Worse)
Adopted Final Actual Than Final Bud get
Revenues:

Inv estment earnin gs2 2,184$ 22 ,184$ 27 ,170$ 4 ,986$ Net chan ge in fair v alue of inv est ments - - (180,149) (180,149) C
ontri buti ons 405,250 405,250 975,196 569,946 Total revenues 427,434 427,434 822,217 394,783 Expenditures:

Current:

Culture and leisure 362 ,108 362,108 336,854 25,254 Total expenditures 362,108 362,108 336,854 25,254 Net change in fund balances 65,326 65,326 485,363 420,037 Fund balance at be ginnin g of yea r 2,535,879 2,535,879 2,535,879 - Fund balance at end of year 2,601,205$ 2,601,205$ 3,021,242$ 420,037$ Budget
ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022

CAPITAL PROJECT FUNDS
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CITY OF PASADENA FINANCIAL SECTION CAPITAL PROJECTS FUNDS

Annual Comprehensive Financial Report | June 30, 2022 165

NON-MAJOR GOVERNMENTAL FUNDS

CAPITAL PROJECTS FUNDS

Capital projects funds are used to account for the acquisition or construction of major capital facilities by the City, other than those financed by proprietary funds.

Charter Capital Projects Fund - to account for certain resources identified by the City Council for the acquisition, construction, replacement or repair of municipal improvements where disbursements other than specific municipal improvement projects can be authorized only by a vote of the people.

New Development Impact Fund - to account for fees received from developers of commercial and industrial facilities to be used to fund capital projects, which are made necessary in whole or in part by new development.

Residential Development Impact Fund - to a ccount for fees received from developers of residential facilities to be used to develop park or recreational facilities.

10% Green Fee Capital Projects Fund - to account for capital improvements related to the development of the Arroyo Seco.

Funding comes from 10% of the gross receipts generated from green fees at the Brookside Golf Course, which are submitted to the capital project fund.

Capital Public Art Fund - to account for fees collected to be used for public art projects.

Traffic Reduction and Transportation Improvement Fee Fund - to account for fees assessed on new fee for new industrial, office, retail, and residential development, to ensure that the transportation improvements identified in the Mobility Element necessary to address the impact of new development on the Ci ty’s transportation system are equitably shared by all new development.

CAPITAL PROJECT FUNDS FINANCIAL SECTION CITY OF PASADENA 166 Annual Comprehensive Financial Report | June 30, 2022 Combining Balance Sheet
Non-Major Governmental Funds
Capital Project Funds
June 30, 2022
10%
Charter New Residential Green Fee
Capital Develo pment Develo pment Ca pital
Projects Impact Impact Projects
Assets:

Cash and investments 1 ,875,650$ 258,281$ 12,736,522$ 80 ,918$ Ac c ounts r eceiv able 2 ,024 2,090 64,479 470 Total assets 1,877,674 260,371 12,801,001 81,388 Fund balances:

Restricted 1,877,674 - - -
Commi tte d - 260,371 12,801,001 81,388
Total fund balances 1,877,674 260,371 12,801,001 81,388 Total liabilities and fund balances 1,877,674$ 260,371$ 12,801,001$ 81 ,388$

CITY OF PASADENA FINANCIAL SECTION CAPITAL PROJECT FUNDS Annual Comprehensive Financial Report | June 30, 2022 167

Traffic
Capital Reduction
Public Trans portation
Art Im provement Total
1,022,922$ 3 ,836,822$ 19 ,811,115$ 2,300 6 ,226 77 ,589 1,025,222 3,843,048 19,888,704 - - 1 ,877,674 1,025,222 3 ,843,048 18 ,011,030 1,025,222 3 ,843,048 19 ,888,704 1,025,222$ 3 ,843,048$ 19 ,888,704$

CAPITAL PROJECT FUNDS FINANCIAL SECTION CITY OF PASADENA 168 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
Capital Project Funds
For the Fiscal Year Ended June 30, 2022

10%
Charter New Residential Green Fee
Capital Develo pment Develo pment Ca pital
Projects Impact Impact Projects
Revenues:

Cha rges for serv ices -$ -$ -$ -$ Inv estment earnin gs1 9,369 2 ,096 152 ,173 657 Net chan ge in fair v alue of inv est ments (82,966) (13,725) (961,316) (4,300) Miscellaneous revenues - - - - Contributions - - 1 ,284,722 - Total revenues (63,597) (11,629) 475,579 (3,643) Expenditures:

Current:

General government 100,217 - - - Total expenditures 100,217 - - - Excess (deficiency) of revenues over (under)
expenditures (163,814) (11,629) 475,579 (3,643) Other financing sources (uses):

Transfers out (7,243) - (9,925,803) - Total other financing sources (uses) (7,243) - (9,925,803) - Net change in fund balances (171,057) (11,629) (9,450,224) (3,643) Fund balances at beginning of year 2,048,731 272,000 22,251,225 85,031 Fund balances at end of year 1,877,674$ 260,371 $ 12,801,001 $ 81,388 $

CITY OF PASADENA FINANCIAL SECTION CAPITAL PROJECT FUNDS Annual Comprehensive Financial Report | June 30, 2022 169

Traffic
Capital Reduction
Public Trans portation
Art Im provement Total
-$ 161,098$ 161 ,098$ 8,296 34 ,777 217 ,368 (54,324) (223,195) (1,339,826) 639 - 639 - - 1 ,284,722 (45,389) (27,320) 324,001 - - 100 ,217 - - 100,217 (45,389) (27,320) 223,784 - (968,197) (10,901,243) - (968,197) (10,901,243) (45,389) (995,517) (10,677,459) 1,070,611 4,838,565 30,566,163 1,025,222$ 3,843,048 $ 19,888,704 $ (This page intentionally left blank)
ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022

PERMANENT FUNDS

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CITY OF PASADENA FINANCIAL SECTION PERMANENT FUNDS

Annual Comprehensive Financial Report | June 30, 2022 173

NON-MAJOR GOVERNMENTAL FUNDS

PERMANENT FUNDS

Permanent funds are used to account for resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the City’s programs.

Vroman Art Bequest Fund - for purchase of books on art and works of art for the Pasadena Public Library.

Singer Trust Fund - for maintenance of Singer Park.

Noble Award Fund - for purchase of medals to award persons rendering notable service in promoting the beauty or general welfare of Pasadena.

Sheldon Memorial Fund - to finance periodic awards to deserving citizens.

Pasadena Center Capital Improvement Trust Fund - for capital improvements.

Cox Trust Fund - for purchase of literary classics.

Jankos Trust Fund - for purchase of books and materials for the purpose of self-improvement, career development, and agriculture.

Hudson Family Trust Fund - for the purchase of any type of library material for the Lamanda Park Branch of the Pasadena Public Library.

M. A. Berger Trust Fund - for support and maintenance of the Pasadena Public Library’s business and economic collections.

PERMANENT FUNDS FINANCIAL SECTION CITY OF PASADENA 174 Annual Comprehensive Financial Report | June 30, 2022 Combining Balance Sheet
Non-Major Governmental Funds
Permanent Funds
June 30, 2022

Pasadena
Center Capital
Vroman Art Sin ger Noble Sheldon Im provement
Bequest Trust Award Memorial Trust
Assets:

Cash and investments 5,802$ 46,064$ 6,135$ 320$ 452,778$ Ac c ounts r ec eiv able 1 9 149 20 1 1,468 Total assets 5,821 46,213 6,155 321 454,246 Fund balances:

Nons pendable 5,000 23 ,426 1 ,100 298 400 ,000 Restricted 821 22 ,787 5 ,055 23 - Committed - - - - 54,246 Total fund balances 5,821$ 46,213 $ 6,155 $ 321 $ 454,246$

CITY OF PASADENA FINANCIAL SECTION PERMANENT FUNDS Annual Comprehensive Financial Report | June 30, 2022 175

Hudson M. A.

Cox Jankos Family Berger
Trust Trust Trust Trust Total
4,629$ 27,654 $ 109,807 $ 1,364,666 $ 2,017,855 $ 15 90 356 4 ,423 6 ,541 4,644 27,744 110,163 1,369,089 2,024,396 4,307 25 ,000 100 ,000 875 ,000 1 ,434,131 337 2 ,744 10 ,163 494 ,089 536 ,019 - - - - 54 ,246 4,644$ 27,744 $ 110,163 $ 1,369,089 $ 2,024,396 $

PERMANENT FUNDS FINANCIAL SECTION CITY OF PASADENA 176 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
Permanent Funds
For the Fiscal Year Ended June 30, 2022

Pasadena
Center Capital
Vroman Art Sin ger Noble Sheldon Im provement
Bequest Trust Award Memorial Trust
Revenues:

Inv estment earnin gs4 7$ 374$ 50$ 2$ 3,675$ Net chan ge in fair v alue of inv estments (308) (2,448) (326) (17) (24,061) Total revenues (261) (2,074) (276) (15) (20,386) Net change in fund balances (261) (2,074) (276) (15) (20,386) Fund balances at be ginnin g of year 6,082 48 ,287 6 ,431 336 474 ,632 Fund balances at end of year 5,821$ 46,213 $ 6,155 $ 321 $ 454,246$

CITY OF PASADENA FINANCIAL SECTION PERMANENT FUNDS Annual Comprehensive Financial Report | June 30, 2022 177

Hudson M. A.

Cox Jankos Family Berger
Trust Trust Trust Trust Total
38$ 226 $ 891 $ 11 ,077$ 16 ,380$ (246) (1,470) (5,835) (72,519) (107,230) (208) (1,244) (4,944) (61,442) (90,850) (208) (1,244) (4,944) (61,442) (90,850) 4,852 28 ,988 115 ,107 1 ,430,531 2 ,115,246 4,644$ 27,744 $ 110,163 $ 1,369,089 $ 2,024,396 $

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ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022

NON-MAJOR ENTERPRISE FUNDS

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CITY OF PASADENA FINANCIAL SECTIO N NON-MAJOR ENTERPRISE FUNDS

Annual Comprehensive Financial Report | June 30, 2022 181

NON-MAJOR ENTERPRISE FUNDS

Enterprise funds are used to account for City operations that are financed and operated in a manner similar to private business enterprises, where the costs of providing these services to the general public on a continuing basis are financed or recovered primarily through user charges.

Refuse Collection Fund - to account for the operations of the City's refuse collection program, a self-supporting activity, which renders services on a user charge basis to residents and businesses.

Telecommunications Fund - to account for revenues received for the use of the fiber optic system excess capacity by private sector firms and used to repay the loan, which funded its construction, as well as fees for setting up wireless facilities on City- owned property.

NON-MAJOR ENTERRPRISE FUNDS FINANCIAL SECTION CITY OF PASADENA 182 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Net Position
Non-Major Enterprise Funds
June 30, 2022

Refuse Tele-
Collection communications Total
Assets:

Current assets:

Cash and investments 23,764,031$ 2 ,297,566$ 26 ,061,597$ Accounts receiva bl e , net 2,293,384 267 ,216 2 ,560,600 Due from com ponent units - 9,000 9 ,000 L ease r ec eiv able - 52 ,500 52 ,500 Prepaids and other assets 24,000 - 24 ,000 Total current assets 26,081,415 2 ,626,282 28 ,707,697 Noncurrent assets:

Lease receivable - noncurrent - 54,572 54 ,572 Capi tal as s ets 11,904,829 2,348,934 14,253,763 Less: accumulated de preci a ti on/amor tizat ion (8,254,786) (950,318) (9,205,104) Capital assets, net of accumulated depreciation/
a mortization 3,650,043 1,398,616 5,048,659 Total noncurrent assets 3,650,043 1 ,453,188 5 ,103,231 Total assets 29,731,458 4 ,079,470 33 ,810,928 Deferred outflow of resources:

Pension related 1,085,724 - 1 ,085,724 OPEB related 323 ,789 - 323 ,789 Total deferred outflow of resources 1,409,513 - 1 ,409,513 Liabilities:

Current liabilities:

Accounts payable and ac c r ued liabilities 9 87,468 1 ,910 989 ,378 Depos its 4,288,366 - 4,288,366 Unearned rev enues - 1,197,083 1,197,083 Total current liabilities 5,275,834 1,198,993 6,474,827 Noncurrent liabilities:

Net pension liabilit y 4,161,466 - 4 ,161,466 Net OP EB liabilit y 2,055,517 - 2 ,055,517 Total noncurrent liabilities 6,216,983 - 6 ,216,983 Total liabilities 11,492,817 1 ,198,993 12 ,691,810 Deferred inflow of resources:

Leas e rel ated - 116 ,969 116 ,969 Pension related 2 ,698,428 - 2 ,698,428 OPEB rel ated 776 ,976 - 776 ,976 Total deferred inflow of resources 3,475,404 116 ,969 3 ,592,373 Net position:

Investment in ca pital assets 3,650,043 1 ,281,647 4 ,931,690 Unrestricted 12 ,522,707 1 ,481,861 14 ,004,568 Total net position 16,172,750$ 2,763,508$ 18,936,258$

CITY OF PASADENA FINANCIAL SECTION NON-MAJOR ENTERPRISE FUNDS Annual Comprehensive Financial Report | June 30, 2022 183 Combining Statement of Revenues, Expenditures and Changes in Net Position Non-Major Enterprise Funds
For the Fiscal Year Ended June 30, 2022
Refuse Tele-
Collection communications Total
Operating revenues:

Charges for services:

Refuse collection 11,863,585$ -$ 11,863,585$
Telecommunication - 775,861 775,861
Total operating revenues 11,863,585 775,861 12,639,446 Operating expenses:

Refuse collection 18 ,175,712 - 18,175,712
Telecommunications - (6,614) (6,614)
De preci a ti on/amortization 642,274 169,269 811,543 Total operating expenses 18,817,986 162,655 18,980,641 Operating income (loss) (6,954,401) 61 3,206 (6,341,195) Non
operating revenues (expenses):

Taxes 6 ,161,960 - 6,161,960
Inter governmental revenues 261,541 - 261,541
Inv estment earnin gs 187,054 17,228 204,282
Net chan ge in fair v alue of inv estments (1,214,511) (128,262) (1,342,773) Gai
n (loss ) on dis posal of assets (4,680) - (4,680) Le
ase revenues - 40,685 40,685
Interest - leases (as lessor ) - 630 630
Noncom plianc e for feit ur es 7,100,291 - 7,100,291
Other 58,701 - 58,701
Total nonoperating revenues (expenses) 12,550,356 (69,719) 12,480,637 Income (loss) before transfers 5,595,955 543,487 6,139,442 Transfers:

Transfers in - 266,764 266,764
Transfers out (198,240) (492,074) (690,314)
Ch
anges in net position 5,397,715 318,177 5,715,892
Net pos i ti on a t begi nni ng of year 10,775,035 2,445,331 13,220,366 Net position at end of year 16,172,750$ 2,763,508$ 18,936,258$

NON-MAJOR ENTERRPRISE FUNDS FINANCIAL SECTION CITY OF PASADENA 184 Annual Comprehensive Financial Report | June 30, 2022 Statement of Cash Flows
Non-Major Enterprise Funds
For the Fiscal Year Ended June 30, 2022
Refuse Tele-
Collection communications Total
Cash Flows from Operating Activities:

Ca s h recei ved from cus tomers 13,709,846$ 500,421$ 14,210,267$ Cash payments to suppliers for goods and services (11,761,843) 1,196,592 (10,565,251) Ca s h pa yments to empl oyees for s ervi ces (7,189,806) - ( 7,189,806)
O
ther revenue 58,701 - 5
8,701
Net cash provided by (used for) operating activities (5,183,102) 1,697,013 (3,486,089) Cash Flows from Noncapital Financing Activities:

C ash tr ansfer s in - 2
66,764 266,764
Ca s h tra ns fers out (198,240) (492,074) (690,314) Ta xes recei ved 6,161,960 - 6
,161,960
Intergov ernmental rev enues 261,541 - 2
61,541
Net cash provided by (used for) noncapital financing activities 6,225,261 (225,310) 5,999,951 Cash Flows from Capital and Related Financing Activities:

Ac quisit ion and c onst r uc t ion of c apital assets (4 8 3 ,7 1 0 ) (266,765) (750,475) Proceeds from sale of capital assets (4,680) - (4
,680)
P
roceeds from lease activities - 5
1,212 51,212
Net cash used for capital and related financing activities (488,390) (215,553) (703,943) Cash Flows from Investing Activities:

Inves tment ea rni ngs 187,054 17,228 204,282
Net change in fair v alue of inv estments (1 ,2 1 4,51 1 ) (128,262) (1,342,773) Net cash provided by (used for) investing activities (1,027,457) (111,034) (1,138,491) Net increase (decrease) in cash and cash equivalents (473,688) 1,145,116 671,428 Cash and cash equivalents at beginning of year 24,237,719 1,152,450 25,390,169 Cash and cash equivalents at end of year 23,764,031$ 2,297,566$ 26,061,597$ Reconciliation of cash and cash equivalents to amounts
reported on the Statement of Net Position:

Ca s h a nd i nves tments 23,764,031 2,297,566 26,061,597 Cash and cash equivalents at end of year 23,764,031$ 2,297,566$ 26 ,061,597$

CITY OF PASADENA FINANCIAL SECTION NON-MAJOR ENTERPRISE FUNDS Annual Comprehensive Financial Report | June 30, 2022 185 Statement of Cash Flows
Non-Major Enterprise Funds (continued)
For the Fiscal Year Ended June 30, 2022

Refuse Tele-
Collection communications Total
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:

Opera ti ng i ncome (l os s ) (6,954,401)$ 613,206 (6,341,195)$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization 642,274 169,269 811,543 Other revenue (expens e) 7,158,992 - 7,158,992 (Increa s e) decrea s e i n a ccounts receiva ble (51,357) (275,440) (326,797) (Increase) decrease in prepaids and other assets (24,000) - (24,000) Increase (decrease) in Accounts payable and accrued liabilities 268,731 (7,105) 261,626 Increase (decrease) in unearned rev enue - 1,197,083 1,197,083 Increa s e (decrea s e) i n depos i ts pa ya bl e (5,202,673) - (5,202,673) Increase (decrease) in deferred inflows - non-lease related 3,196,392 - 3,196,392 (Increase) decrease in deferred outflows 354,831 - 354,831 Increase (decrease) in net OPEB liability (705,527) - (705,527) Inc r ease (dec r ease) in net pension liability (3 ,8 6 6 ,3 6 4 ) - (3,866,364) Total adjustments 1,771,299 1,083,807 2,855,106 Net cash provided by (used for) operating activities (5,183,102)$ 1,697,013$ (3,486,089)$ Non-Cash Investing, Capital and Financing Activities
C hanges in fair v alue of inv estments 1 ,2 1 4,5 11 128,262 1,342,773

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ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022

INTERNAL SERVICE FUNDS

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CITY OF PASADENA FINANCIAL SECTION INTERNAL SERVICE FUNDS

Annual Comprehensive Financial Report | June 30, 2022 189

INTERNAL SERVICE FUNDS

Internal service funds are used to account for the financing of goods and services provided by one City department to another or to other governmental units on a cost-reimbursement basis.

Computing and Communication Services Fund - to account for all operations of the Computing and Communications Division of the City Manager's Department, which includes such services as data processing, radio communications, telephone, and voice services.

Building Maintenance Fund - to account for housekeeping and structural maintenance of City buildings.

Fleet Replacement Fund - to account for the procurement of City vehicles.

Fleet Repair and Maintenance Fund - to account for the repair and maintenance of City vehicles.

Benefits Fund - to account for employee compensated absences, retirement, and health benefits.

Workers’ Compensation Fund - to accoun t for investigation services, temporary disability and medical payments, excess insurance, permanent disability awards, ad ministrative services, and litigation cost s. Premiums based on employee worker classifications are indirectly charged to each department for claims proportionate to current industry rates applicable to job functions.

General Liability Fund - to a ccount for payment of se lf-insured general liability and automobile liability claims, excess insurance, claims adjusting services, lit igation costs, and administrative services. Contributions are made from each department and are based on past claims experience and appropriate risk factors.

311 Call Center Fund – to account for the operation of the City’s central call center.

INTERNAL SERVICE FUNDS FINANCIAL SECTION CITY OF PASADENA 190 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Net Position
Internal Service Funds
June 30, 2022
Computing and
Communication Buildin g Fleet
Assets: Services Maintenance Re placement
Current assets:

Cash and investments 2 ,079,427$ 8,038,994$ 14,932,484$ Accounts recei va bl e 10 ,296 34,203 2,914
Due from com ponent units - 525 -
Inv entories - - -
Prepaids and other assets 1,169,837 - 333,500
L ease r ec eiv able - 260,841 -
Total current assets 3,259,560 8,334,563 15,268,898
Noncurrent assets:

L ease r ec eiv able - 572,019 -
Ca pi ta l a s s ets 8,076,419 24,310 26,235,700
Less: accumulated de preci a ti on/amor t ization (5,635,563) (24,310) (17,381,923) C
apital as sets , net 2,440,856 -
8,853,777
Total noncurrent assets 2,440,856 572,019 8,853,777 Total assets 5,700,416 8,906,582 24,122,675
Deferred outflow of resources:

Pension related 2,056,492 861,467 34,372
OPEB rela ted 400,881 200,441 5,140
Total deferred outflow of resources 2,457,373 1,061,908 39,512 Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 749,127 714,741 54,154 Insurance claims payable - - -
Due to other funds - - -
Compensated absences - - -
Total current liabilities 749,127 714,741 54,154
Noncurrent liabilities:

Insurance claims payable - - -
Compensated absences - - -
Net pension liabilit y 7,225,009 3,814,390 2,931,542 Net OP EB liabilit y 2,544,926 1,272,463 32,627
Total noncurrent liabilities 9,769,935 5,086,853 2,964,169 Total liabilities 10,519,062 5,801,594 3,018,323
Deferred inflows of resources:

Leas e related - 810,969 -
Pension related 5,111,145 2,141,066 85,427
OPEB rela ted 961,970 480,985 12,333
Total deferred inflows of resources 6,073,115 3,433,020 97,760 Net position:

Net inv estment in c a pital assets 2,440,856 (810,969) 8,853,777 Unres tri cted (10,875,244) 1,544,845 12,192,327
Total net position (deficit) (8,434,388)$ 733,876$ 21,046,104$

CITY OF PASADENA FINANCIAL SECTION INTERNAL SERVICE FUNDS

Annual Comprehensive Financial Report | June 30, 2022 191

Fleet
Repair and Workers' General 311
Maintenance Benefits Com pensation Liabilit y Call Center Total 3,893,793$ - $ 12 ,574,127$ - $ 297 ,424$ 41 ,816,249$ 48,141 195 ,289 - 18 ,178 609 309 ,630 6,506 - - 14 ,534 - 21 ,565 508,207 - - - - 508 ,207 - 26 ,168 37 ,047 938 - 1 ,567,490 - - - - - 260 ,841 4,456,647 221 ,457 12 ,611,174 33 ,650 298 ,033 44 ,483,982 - - - - - 572,019 134,552 - - 3,714,391 - 38,185,372 (17,716) - - - - (23,059,512) 116,836 - - 3,714,391 - 15,125,860 116,836 - - 3 ,714,391 - 15 ,697,879 4,573,483 221 ,457 12 ,611,174 3 ,748,041 298 ,033 60 ,181,861 441,395 10 ,887,795 1 ,035,975 60 ,425 108 ,114 15 ,486,035 128,488 25 ,698 30 ,837 10 ,279 30 ,837 832 ,601 569,883 10 ,913,493 1 ,066,812 70 ,704 138 ,951 16 ,318,636 1,109,705 5 ,160,195 92 ,822 18 ,288 24 ,382 7 ,923,414 - - 16 ,451,651 17 ,856,032 - 34 ,307,683 - 24 ,570,260 - 5 ,616,537 - 30 ,186,797 - 11 ,355,797 - - - 11 ,355,797 1,109,705 41 ,086,252 16 ,544,473 23 ,490,857 24 ,382 83 ,773,691 - - 24,526,956 17,317,994 - 41,844,950 - 831,254 - - - 831 ,254 (836,433) 37,871,560 5 ,112,862 265 ,700 180 ,334 56 ,564,964 815,681 163 ,136 195 ,764 65 ,255 195 ,764 5 ,285,616 (20,752) 38,865,950 29 ,835,582 17 ,648,949 376 ,098 104 ,526,784 1,088,953 79 ,952,202 46 ,380,055 41 ,139,806 400 ,480 188 ,300,475 - - - - - 810 ,969 1,097,030 24 ,403,479 2 ,087,589 150 ,177 268 ,703 35 ,344,616 308,324 61 ,665 73 ,998 24 ,666 73 ,998 1 ,997,939 1,405,354 24 ,465,144 2 ,161,587 174 ,843 342 ,701 38 ,153,524 116,836 - - 3 ,714,391 - 14 ,314,891 2,532,223 (93,282,396) (34,863,656) (41,210,295) (306,197) (164,268,393) 2,649,059$ (93,282,396) $ (34,863,656) $ (37,495,904) $ (306,197) $ (149,953,502)$

INTERNAL SERVICE FUNDS FINANCIAL SECTION CITY OF PASADENA 192 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Revenues, Expenditures and Changes in Net Position Internal Service Funds
For the Fiscal Year Ended June 30, 2022
Computing and
Communication Buildin g Fleet
Services Maintenance Re placement
Operating revenues:

Charges for services:

Computin g and communication services 18,147,130$ - $ -$ Buildin g maintenance - 13,484,944 -
Fleet re placement and maintenance - - 3,056,649
Emplo yee benefits - - -
Insurance - - -
Other revenues - - -
Total operating revenues 18,147,130 13,484,944 3,056,649 Operating expenses:

Computin g a nd communi ca ti on s ervi ces 15,842,370 - - Buildin g maintenance - 12,200,762 -
Fleet re placement and maintenance - - 197,172 Benefits - - -
Insurance - - -
311 Ca l l Ce nte r - - -
De preci a ti on 1,196,057 208 1,345,894
Total operating expenses 17,038,427 12,200,970 1,543,066 Operating income (loss) 1,108,703 1,283,974 1,513,583 Nonoperating revenues (expenses):

Inv estment earnin gs (loss ) 11,785 63,795 116,893 Net chan ge in fair v alue of inv estments (96,214) (418,906) (769,894) L
ease revenues - 270,323 -
Interest - leases (as lessor ) - 3,938 -
Gain (loss ) on dis posal of assets - - 60,206
Total nonoperating revenues (expenses) (84,429) (80,850) (592,795) Income (loss) before transfers 1,024,274 1,203,124 920,788 Transfers from (to) other funds:

Transfers in 818,630 246,903 -
Transfers out (557,439) (1,117,866) -
Net income (loss) 1,285,465 332,161 920,788
Net position (deficit) at beginning of year (9,719,853) 401,715 20,125,316 Net position (deficit) at end of year (8,434,388)$ 733,876$ 21,046,104$

CITY OF PASADENA FINANCIAL SECTION INTERNAL SERVICE FUNDS

Annual Comprehensive Financial Report | June 30, 2022 193

Repair and Workers' General 311
Maintenance Benefits Com pensation Liabilit y Call Center Total -$ -$ -$ -$ -$ 18,147,130$ - - - - - 13 ,484,944 10,852,049 - - - - 13 ,908,698 - 32 ,924,362 - - - 32 ,924,362 - - 16 ,543,393 4 ,044,295 - 20 ,587,688 - 105 ,605 - - 850 ,557 956 ,162 10,852,049 33 ,029,967 16 ,543,393 4 ,044,295 850 ,557 100 ,008,984 - - - - - 15 ,842,370 - - - - - 12 ,200,762 10,032,348 - - - - 10 ,229,520 - 36 ,504,936 - - - 36 ,504,936 - - 22 ,226,743 39 ,880,673 - 62 ,107,416 - - - - 704 ,865 704 ,865 8,318 - - - - 2 ,550,477 10,040,666 36,504,936 22,226,743 39,880,673 704,865 140,140,346 811,383 (3,474,969) (5,683,350) (35,836,378) 145,692 (40,131,362) 23,008 (211,497) 94,821 (31,947) 1,751 68 ,609 (154,537) 1,459,031 (645,742) 221,134 (12,121) (417,249) - - - - - 270 ,323 - - - - - 3 ,938 - - - - - 60 ,206 (131,529) 1,247,534 (550,921) 189,187 (10,370) (14,173) 679,854 (2,227,435) (6,234,271) (35,647,191) 135,322 (40,145,535) - - - 3 ,500,000 - 4 ,565,533 - - - - - (1,675,305) 679,854 (2,227,435) (6,234,271) (32,147,191) 135,322 (37,255,307) 1,969,205 (91,054,961) (28,629,385) (5,348,713) (441,519) (112,698,195) 2,649,059$ (93,282,396)$ (34,863,656)$ (37,495,904)$ (306,197)$ (149,953,502)$

INTERNAL SERVICE FUNDS FINANCIAL SECTION CITY OF PASADENA 194 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended June 30, 2022
Computing and
Communication Building Fleet
Services Maintenance Replacement
Cash Flows from Operating Activities:

Ca s h recei ved from cus tomers 18,146,512 $ 13,500,607 $ 3,054,953 $ C ash pay ments to supplier s for goods and ser v ic es (7 ,2 3 5 ,7 9 8 ) (7,993,071) (327,165) C ash pay ments to employ ees for serv ices (10,869,718) (5,107,096) (191,982) Net cash provided by (used for) operating activities 40,996 400,440 2,535,806 Cash Flows from Noncapital Financing Activities:

Transfers from other funds 818,630 246,903 -
Transfers to other funds (557,439) (1,117,866) -
Net cash provided by (used for) noncapital financing activities 261,191 (870,963) - Cash Flows from Capital and Related Financing Activities:

Acquisition and construction of capital assets (212,229) - (1,546,860)
P
roceeds from sale of capital assets - - 64,468
P roceeds from lease activ ities -
252,370 -
Net cash used for capital and related financing activities (212,229) 252,370 (1,482,392) Cash Flows from Investing Activities:

Inv est ment ear nings (loss) 1 1 , 7 8 5 63,795 116,893 Net c hange in fair v alue of inv estments (9 6 ,2 1 4 ) (418,906) (769,894) Net cash provided by (used for) investing activities (84,429) (355,111) (653,001) Net increase (decrease) in cash and cash equivalents 5,529 (573,264) 400,413 Cash and cash equivalents at beginning of year 2,073,898 8,612,258 14,532,071 Cash and cash equivalents at end of year 2,079,427$ 8,038,994$ 14,932,484$ Reconciliation of cash and cash equivalents to amounts
reported on the Statement of Net Position:

Cash and investments 2,079,427 8,038,994 14,932,484 Cash and cash equivalents at end of year 2,079,427$ 8,038,994$ 14,932,484$

CITY OF PASADENA FINANCIAL SECTION INTERNAL SERVICE FUNDS

Annual Comprehensive Financial Report | June 30, 2022 195

Fleet
Repair and Workers' General 311
Maintenance Benefits Compensation Liability Call Center Total 11,062,650$ 33,004,851$ 16,543,393$ 4,080,252$ 850,512$ 100,243,730$ (7,076,837) (3,584,768) 3,353,932 (15,056,210) (120,414) (38,040,331) (2,758,734) (30,667,617) (16,674,595) 5,294,282 (639,257) (61,614,717) 1,227,079 (1,247,534) 3,222,730 (5,681,676) 90,841 588,682 - - - 3,500,000 - 4,565,533 - - - - - (1,675,305) - - - 3,500,000 - 2,890,228 (92,035) - - - - (1,851,124) - - - - - 64,468 - - - - - 252,370 (92,035) - - - - (1,534,286) 23,008 (211,497) 94,821 (31,947) 1,751 68,609 (154,537) 1,459,031 (645,742) 221,134 (12,121) (417,249) (131,529) 1,247,534 (550,921) 189,187 (10,370) (348,640) 1,003,515 - 2,671,809 (1,992,489) 80,471 1,595,984 2,890,278 - 9,902,318 1,992,489 216,953 40,220,265 3,893,793$ -$ 12,574,127$ -$ 297,424$ 41,816,249$ 3,893,793 - 12,574,127 - 297,424 41,816,249 3,893,793$ -$ 12,574,127$ -$ 297,424$ 41,816,249$

INTERNAL SERVICE FUNDS FINANCIAL SECTION CITY OF PASADENA 196 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Cash Flows (continued)
Internal Service Funds
For the Fiscal Year Ended June 30, 2022
Computing and
Communication Building Fleet
Services Maintenance Replacement
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:

Opera ti ng i ncome (l os s ) 1,108,703 $ 1,283,974$ 1,513,583$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization 1,196,057 208 1,345,894 (Increase) decrease in accounts receivable (618) 16,188 (1,696) (Increase) decrease in due from component units -
(525)
-
Increase (decrease) in due to other funds -
- -
(Increase) decrease in inventories -
- -
(Increase) decrease in prepaids and other assets (217,703) - (333,500)
Increase (decrease) in Accounts payable and accrued liabilities (382,366) 218,962 44,550 Increase (decrease) in insurance claims payable - - - Inc r ease (dec r ease) in c ompensated absenc es - - - Incr ease (decrease) in deferr ed inflows - non-lease related 5,666,060 2,410,774 91,606 (Increase) decrease in deferred outflows 573,234 295,289 7,607 Inc r ease (dec r ease) in net OP EB liabilit y (5 72 ,38 1) (776,053) (11,906) Inc r ease (dec r ease) in net pension liability (7,3 29 ,99 0 ) (3,048,377) (120,332) Total adjustments (1,067,707) (883,534) 1,022,223
Net cash provided by (used for) operating activities 40,996$ 400,440$ 2,535,806$ Non-Cash Investing, Capital and Financing Activities
Appr ec iation (depr ec iation) in fair v alue of inv est ments 96 ,21 4 418,906 769,894

CITY OF PASADENA FINANCIAL SECTION INTERNAL SERVICE FUNDS

Annual Comprehensive Financial Report | June 30, 2022 197

Fleet
Repair and Workers' General 311
Maintenance Benefits Compensation Liability Call Center Total 811,383$ (3,474,969) $ (5,683,350) $ (35,836,378) $ 145,692 $ (40,131,362) $ 8,318 - - - - 2,550,477 217,107 (25,116) - 50,491 (45) 256,311 (6,506) - - (14,534) - (21,565) - 12,277,005 - 5,616,537 - 17,893,542 (67,370) - - - - (67,370) - (8,818) (9,019) (938) - (569,978) 533,601 (1,316,443) (41,468) (44,092) 10,304 (976,952) - - 9,503,010 24,605,430 - 34,108,440 - (789,036) - - - (789,036) 1,305,782 23,603,349 2,023,545 163,624 317,739 35,582,479 84,898 1,156,288 1,153,695 11,248 31,104 3,313,363 (119,511) (59,529) (71,434) (23,811) (26,901) (1,661,526) (1,540,623) (32,610,265) (3,652,249) (209,253) (387,052) (48,898,141) 415,696 2, 227,435 8,906,080 30,154,702 (54,851) 40,720,044 1,227,079$ (1,247,534)$ 3,222,730$ (5,681,676)$ 90,841$ 588,682$ 154,537 (1,459,031) 645,742 (221,134) 12,121 417,249

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ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022

FIDUCIARY FUNDS
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CITY OF PASADENA FINANCIAL SECTION FIDUCIARY FUNDS

Annual Comprehensive Financial Report | June 30, 2022 201

FIDUCIARY FUNDS

Fiduciary funds are used to account for assets held by the City in a trustee or custodial capacity for individuals, governmental entities, and others, and are oper ated by carrying out the specifications of trust indentures, statutes, ordinances, or other governing regulations.

Employee Benefit Trust Funds:

Deferred Compensation Fund - to account for resources earned by present and former employees and held in a trust capacity by the City in accordance with the provisions of Internal Revenue Code Section 457.

Fire and Police Retirement Fund - to account for transactions of the Fire and Police Retirement System, which is governed by its own retirement board.

Custodial Funds:

Lake/Washington Special Assessment District Fund - to account for maintenance costs of the parking lot located at Lake Avenue and Washington Boulevard.

Library Equipment Replacement Fund - to account for the library automated control system operated under joint agreement with the City of Glendale.

Workforce Innovation and Opportunity Act Fund - to account for the administration of Workforce Innovation and Opportunity Act (WIOA) activities under the direction of the Foothill Workforce Development Board (FWDB).

Open Space Assessment District Fund - to account for receipt and disbursement of debt service activity related to the acquisition and improvement of the Annandale Canyon Estates and adjacent property to be established as open space.

Private-Purpose Trust Funds : The fiduciary fund type used to report all trust arrangements, other than those properly reported in employee benefit trust funds or investment trust funds, under which principal and income benefit individuals, private organizations, or other governments. Private-purpose trust funds are used for the activities of the Successor Agency to the Pasadena Community Development Commission (PCAC). See the next tab for the combining statements related to the Successor Agency.

FIDUCIARY FUNDS FINANCIAL SECTION CITY OF PASADENA 202 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Net Position
Employee Benefit Trust Funds
June 30, 2022
Fire and Police
Deferred Retirement
Compensation System Total
Assets:

C ash and c ash e quivalents 325,092,326$ 2,769,310 327,861,636$ Short-term i nves tments - 608,561 608,561
Receivables:

Pendin g tra de s ales - 2,634,599 2,634,599
Interest - 283,993 283 ,993
Total receivables - 2,918,592 2,918,592
Investments, at fair value:

Government and a gencies - 19,255,353 19,255,353
Fixed income mutual funds - 15,676,777 15,676,777
Domestic cor porate obli gat ions - 21,541,729 21,541,729 Inter national c or porate obli gat ions - 1,428,993 1,428,993 Real estate - 15,029,667 15,029,667
Domestic cor porate stocks - 20,377,674 20,377,674
Inter national c or porate stocks - 20,346,394 20,346,394 Total investments - 113,656,587 113,656,587
Total assets 325,092,326 119,953,050 445,045,376
Liabilities:

Accounts payable and ac cr ued liabilities - 60,343 60,343 Pending purchases - 8,230,969 8,230,969
Total liabilities - 8,291,312 8,291,312
Net position reserved in trust:

Held in trust for pensions 325,092,326 111,661,738 436,754,064 Total net position reserved in trust 325,092,326$ 111,661,738 436,754,064$

CITY OF PASADENA FINANCIAL SECTION FIDUCIARY FUNDS Annual Comprehensive Financial Report | June 30, 2022 203 Combining Statement of Changes in Net Position
Employee Benefit Trust Funds
For the Fiscal Year Ended June 30, 2022

Fire and Police
Deferred Retirement
Compensation System Total
Additions:

Contributions:

Plan members 16,645,496$ - $ 16 ,645,496$ Total contributions 16,645,496 - 16 ,645,496 Net investment income (loss):

Inv estment earnin gs (loss ) (41,299,282) 654,560 (40,644,722) Net chan ge in fair v alue of inv estments - (12,759,021) (12,759,021) Dividends - 1 ,786,426 1 ,786,426 Gross investment income (41,299,282) (10,318,035) (51,617,317) Less investment expenses - (337,741) (337,741) Total net investment income (41,299,282) (10,655,776) (51,955,058) Total additions (24,653,786) (10,655,776) (35,309,562) Deductions:

Benefits paid t o par ticipants 23,589,759 12 ,072,173 35 ,661,932 Administrative ex penses 233,578 342 ,899 576 ,477 Total deductions 23,823,337 12 ,415,072 36 ,238,409 Change in net position (48,477,123) (23,070,848) (71,547,971) Net position held in trust for employees:

Be ginnin g of year 373,569,449 134 ,732,586 508 ,302,035 End of year 325,092,326$ 111,661,738 $ 436,754,064 $

FIDUCIARY FUNDS FINANCIAL SECTION CITY OF PASADENA 204 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Net Position
Custodial Funds
June 30, 2022

Lake/
Washington Workforce
Special Library Innovation and O pen Space
Assessment E quipment O pportunity Assessment
District Re placement Act (WIOA) District Total
Assets:

Cash and investments -$ 299,515$ 14 ,971$ 144 ,025$ 458 ,511$ Accounts recei va bl e 2 ,305 5 ,315 2 ,305,577 3 ,911 2 ,317,108 Ot her asset s - - 4 ,414 - 4 ,414 Total assets 2,305 304,830 2,324,962 147,936 2,780,033 Liabilities:

Accounts payable and ac c r ued liabilities - - 1,491,961 750 1 ,492,711 Due to other governments 3,960 - - - 3 ,960 Due to bondholders - - - 944 ,635 944 ,635 Total liabilities 3,960 - 1,491,961 945,385 2,441,306 Net position (deficit) held in custody:

Restricted for s pec ial assessment s (1,655) - - - (1,655) Re s tri cte d for l i bra ry equi pment - 304,830 - - 304 ,830 Restricted for WIOA - - 833 ,001 - 833 ,001 Restricted for bondholders - - - (797,449) (797,449) End of year (1,655)$ 304,830 $ 833,001 $ (797,449) $ 338,727 $

CITY OF PASADENA FINANCIAL SECTION FIDUCIARY FUNDS
Annual Comprehensive Financial Report | June 30, 2022 205 Combining Statement of Fiduciary Net Position
Custodial Funds
For the Fiscal Year Ended June 30, 2022
Lake/
Washington Workforce
Special Library Innovation and O pen Space
Assessment E quipment O pportunity Assessment
District Re placement Act (WIOA) District Total
Additions:

Inv estment earnin gs (loss ) 46$ (5,800)$ -$ (5,243)$ (10,997)$ Assessment r ev enue 3 0 ,822 - - 83,233 114,055 Inter governmental revenue - - 3,719,300 - 3,719,300 Total additions 30,868 (5,800) 3,719,300 77,990 3,822,358 Deductions:

Contributions to Cit y 27,620 - - - 27,620
Progra m e xpense - - 3,009,604 970 ,686 3,980,290 Administrative ex pense - - - 2,999 2,999 Interest ex pense - - - 56,632 56,632 Total deductions 27,620 - 3,009,604 1,030,317 4,067,541 Change in net position 3,248 (5,800) 709,696 (952,327) (245,183) Net position (deficit) held in custody:

Be ginnin g of year (4,903) 310,630 123,305 154,878 583,910 End of year (1,655)$ 304,830$ 833,001$ (797,449)$ 338,727$ (This page intentionally left blank)
ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022

SUCCESSOR AGENCY COMBINED

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CITY OF PASADENA FINANCIAL SECTION PRIVATE-PURPOSE TRUST FUNDS

Annual Comprehensive Financial Report | June 30, 2022 209

PRIVATE-PURPOSE TRUST FUNDS

Private-purpose trust funds are one type of the fiduciary funds reported in the prior tab.

Successor Agency to Pasadena Community Development Commission (PCAC) - was formed to account for receipt of incremental property tax and disbursements related to enforceable obligations (debts) of the former redevelopment agency.

It will remain in place until all enforcea ble obligations, as approved on the Recognized Obligation Payment Schedule (ROPS) by California Department of Finance, are paid in full and all assets have been liquidated. It includes the following funds:

• Administration Fund - to account for administrative costs of the Successor Agency as approved on the ROPS.

• Redevelopment Obligation Retirement Fund - to account fo r receipts and disbursement s of incremental property tax.

• Debt Funds - to account for enforceable obligations of the former redevelopment agency. They include Old Pasadena, Lincoln, Downtown, Fair Oa ks, Orange Grove, Villa Parke, Lake/Washington project areas, and the Affordable Housing debt function. The Affordable Housing debt fund is used to account for the 2006 Tax Allocation Revenue Bonds (housing set-aside revenues – Townhouse Project Refunding), Housing Enabled by Local Partnerships (HELP) program loans, and payment of enforceable obligations of the former Low and Moderate Income Housing Fund.

PRIVATE-PURPOSE TRUST FUNDS FINANCIAL SECTION CITY OF PASADENA 210 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Net Position
Private-Purpose Trust Funds
June 30, 2022
Redevelopment
Administration
Obligation
Retirement Fund Old Pasadena Lincoln Downtown
Assets
Current assets:

C ash and inv estment s -$ 5,000$ -$ -$ -$
Cash with fiscal a gent - 7,943 - - -
Notes r eceiv able - - - - -
Allowanc e for uncollectible
long-ter m r ec eiv able - - - - -
Total current assets - 12,943 - - -
Noncurrent assets:

Land and land rights - 214,261 - - -
Total noncurrent assets - 214,261 - - -
Total assets - 227,204 - - -
Net Position
Net position held in tr ust -$ 227,204$ -$ -$ -$ Successor Agency

CITY OF PASADENA FINANCIAL SECTION PRIVATE-PURPOSE TRUST FUNDS Annual Comprehensive Financial Report | June 30, 2022 211

Fair Oaks Orange Grove Villa Parke
Lake
Washington
Affordable
Housing Total
43,348$ 48 ,588$ 9 ,278$ 86 ,440$ 80 $ 192 ,734$ - - - - - 7 ,943 515,000 - - - - 515 ,000 (515,000) - - - - (515,000) 43,348 48 ,588 9 ,278 86 ,440 80 200 ,677 - - - - - 214,261 - - - - - 214 ,261 43,348 48 ,588 9 ,278 86 ,440 80 414 ,938 43,348$ 48 ,588$ 9 ,278$ 86 ,440$ 80 $ 414 ,938$ Successor Agency

PRIVATE-PURPOSE TRUST FUNDS FINANCIAL SECTION CITY OF PASADENA 212 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Changes in Net Position
Private-Purpose Trust Funds
For the Fiscal Year Ended June 30, 2022

Redevelopment
Administration
Obligation
Retirement Fund Old Pasadena Lincoln Downtown
Additions:

Property ta xes -$ 8,572,235$ - $ - $ - $ Inv estment earnin gs- - - - - M isc ellaneous r ev enues - - - - - Total additions - 8,572,235 - - - Deductions:

Fiscal a genc y expenses - - - - - Interest ex pense - - - - - Statutor y pass-t hr ough ex penses - - 6,292,979 52 ,688 - Administrative expenses:

Count y administr ativ e ex penses - - 147,580 7 ,300 679 ,981 Successor agency administrativ e
cost allowance 36,142 - - - - Total deductions 36,142 - 6 ,440,559 59 ,988 679 ,981 Transfers:

Transfers in 24 ,899 (8,572,235) 6,440,559 59 ,988 679 ,981 Transfers out - - - - - Total transfers 24,899 (8,572,235) 6,440,559 59 ,988 679 ,981 Change in amount held in trust (11,243) - - - - Amount held in trust at be ginnin g of year 11,243 227 ,204 - - - Amount held in trust at end of year -$ 227,204$ - $ - $ - $ Successor Agency

CITY OF PASADENA FINANCIAL SECTION PRIVATE-PURPOSE TRUST FUNDS Annual Comprehensive Financial Report | June 30, 2022 213

Fair Oaks Orange Grove Villa Parke Lake Washington Affordable Housing Total -$ - $ - $ - $ - $ 8 ,572,235$ 5 - - 2 - 7 - 7 ,745 - - - 7 ,745 5 7 ,745 - 2 - 8 ,579,987 1,902 - - - - 1 ,902 - - - - - - 333,910 57 ,873 553 ,637 347 ,604 - 7 ,638,691 29,001 14 ,417 45 ,223 10 ,042 - 933 ,544 - - - - - 36,142 364,813 72 ,290 598 ,860 357 ,646 - 8 ,610,279 362,911 72 ,290 598 ,860 357 ,646 - 24 ,899 (24,899) - - - - (24,899) 338,012 72 ,290 598 ,860 357 ,646 - - (26,796) 7,745 - 2 - (30,292) 70,144 40 ,843 9 ,278 86 ,438 80 445 ,230 43,348$ 48,588 $ 9,278 $ 86,440 $ 80 $ 414,938$ Successor Agency
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ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022

COMPONENT UNITS

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CITY OF PASADENA FINANCIAL SECTION COMPONENT UNIT

Annual Comprehensive Financial Report | June 30, 2022 217

DISCRETELY PRESENTED COMPONENT UNIT

ROSE BOWL OPERATING COMPANY

Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component units can be other orga nizations for which the nature and significance of their relationship with a primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Discretely presented component units do not meet one of the two criteria for blending. The two criteria required to blend component units are (1) the Board of the component unit is substantively the same as that of the City or (2) the component unit serves the City exclusively.

Rose Bowl Operating Company - incorporated on January 18, 1994 , as a legally separate entity with 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.

COMPONENT UNIT FINANCIAL SECTION CITY OF PASADENA
218 Annual Comprehensive Financial Report | June 30, 2022 Combining Statement of Net Position
Discretely Presented Component Unit
Rose Bowl Operating Company
June 30, 2022
Golf
Rose Bowl Course Total
Assets
Current assets:

Cash and investments 20 ,155,549$ 15,956,749$ 36,112,298$ Accounts recei va bl e, net 5,612,763 348,589 5,961,352 Inv entory 519 122,378 122,897
Prepaids and other assets 344,913 2,660 347,573
Total current assets 25,714,036 17,055,873 42,769,909 Noncurrent assets:

Due from Cit y of Pasadena 438,830 - 438,830
Rest r ic ted asset s - c ash and inv est ments 1 1,188,835 - 11,188,835 L ease r ec eiv able 4 7 9 ,042 - 479,042
Capital assets:

Not bein g de preci a ted/amor tized - 970 970
Bein g de preci a ted/amor t ized, net 149,320,201 6,130,782 155,450,983 Total noncurrent assets 161,426,908 6,131,752 167,558,660 Total assets 187,140,944 23,187,625 210,328,569
Deferred outflow of resources
Deferred refundi n g cha rge1 ,776,732 - 1,776,732
Pension related 847,666 40,593 888,259
Total deferred outflow of resources 2,624,398 40,593 2,664,991 Liabilities
Current liabilities:

Accounts payable and ac c r ued liabilities 3,871,311 2,132,652 6,003,963 Accrued salaries and benefits 570,005 70,583 640,588
Accrued i nteres t payable 3,110,530 - 3,110,530
Due to Cit y of Pasadena 1,182,341 350,313 1,532,654
De posits 377,285 - 377,285
Unearned rev enues 4,232,612 65,707 4,298,319
Current portion of lon g-term advance 100,000 - 100,000 Current portion of lon g-term debt 4,610,414 60,490 4,670,904 Total current liabilities 18,054,498 2,679,745 20,734,243 Noncurrent liabilities:

Long-term advance 500,000 - 500,000
Long-term debt , net of current portion 199,052,866 518,813 199,571,679 Net pension liabilit y 1,326,523 63,525 1,390,048
Total noncurrent liabilities 200,879,389 582,338 201,461,727 Total liabilities 218,933,887 3,262,083 222,195,970
Deferred inflows of resources
Lea s e related 694,573 - 694,573
Pension related 1,157,985 55,454 1,213,439
Total deferred inflows of resources 1,852,558 55,454 1,908,012 Net Position
Net investment in ca pital assets (21,564,150) 5,562,297 (16,001,853) R
es tri cted for debt s ervi ce 11,188,835 - 11,188,835 Unres tri cted (20,645,788) 1 4,348,384 (6,297,404) T
otal net position (deficit) (31,021,103)$ 19,910,681$ (11,110,422)$

CITY OF PASADENA FINANCIAL SECTION COMPONENT UNIT Annual Comprehensive Financial Report | June 30, 2022 219 Combining Statement of Revenues, Expenditures and Changes in Net Position Discretely Presented Component Unit
Rose Bowl Operating Company
For the Fiscal Year Ended June 30, 2022

Golf
Rose Bowl Course Total
Operating revenues:

Charges for services:

Rose Bowl 30 ,225,641$ - $ 30 ,225,641$ Golf course - 8 ,624,885 8 ,624,885 Total operating revenues 30,225,641 8 ,624,885 38 ,850,526 Operating expenses:

Rose Bowl 26 ,329,694 - 26 ,329,694 Golf course - 5 ,993,624 5 ,993,624 De preciation 11,658,581 795 ,821 12 ,454,402 Total operating expenses 37,988,275 6,789,445 44,777,720 Operating income (loss) (7,762,634) 1,835,440 (5,927,194) Nonoperating revenues (expenses):

Inv estment earnin gs (loss ) (3,840,769) (156,341) (3,997,110) Interest ex pense (12,275,424) - (12,275,424) Contribution from Cit y of Pasadena 9,258,005 - 9 ,258,005 Grant revenues 10 ,000,000 - 10 ,000,000 Other nono peratin g revenues 5,128,045 47 ,572 5 ,175,617 Total nonoperating revenues (expenses) 8,269,857 (108,769) 8,161,088 Changes in net position 507,223 1 ,726,671 2 ,233,894 Net pos i ti on (defi ci t) a t begi nni ng of yea r (31,528,326) 18,184,010 (13,344,316) Net position (deficit) at end of year (31,021,103)$ 19,910,681 $ (11,110,422) $

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ANNUAL COMPREHENSIVE FINANCIAL REPORT | JUNE 30, 2022

STATISTICAL SECTION

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CITY OF PASADENA S TATISTICAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 223

STATISTICAL SECTION CONTENT DESCRIPTION
(Unaudited)
This section of the City of Pasadena’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Contents
Financial Trends 224
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Net Position
Changes in Net Position
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Revenue Capacity 235
These schedules contain information to help the reader assess the City’s two most significant local revenue sources by type, the property and sales tax for governme ntal activities and electric revenue for business-type activities.

Assessed Value and Estimated Actual Value of Taxable Property Direct and Overlapping Property Tax Rates
Principal Property Taxpayers
Property Tax Levies and Collections
Taxable Sales by Category
Electricity Sold by Type of Customer
Electricity Rates
Electricity Customers
Debt Capacity 246
These schedules present information to help the reader a ssess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Ratio of Outstanding Debt by Type
Ratio of General Bonded Debt Outstanding
Direct and Overlapping Bonded Debt
Legal Debt Margin Information
Governmental Activity Debt
Business-Type Activity Debt
Demographic and Economic Information 259
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Demographic and Economic Statistics
Principal Employers
Operating Information 262
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

Full-time and Part-time City Employees by Program
Operating Indicators by Function/Program
Capital Asset Statistics by Function/Program

Sources: Unless otherwise noted, the information in th ese schedules is derived fr om the annual comprehensive financial reports for the relevant year.

STATISTICAL SECTION CITY OF PASADENA
224 Annual Comprehensive Financial Report | June 30, 2022 Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(in Thousands)
2013 2014 2015 2016
Governmental activities
Net inv estment in ca pital assets 4 3 0,453$ 419,328$ 408,195$ 405,858$ Restricted 63 ,633 60,592 44,327 56,050
Unres tri cted (41,046) (29,751) (339,336) (325,826) To
tal governmental activities net position 4 5 3,040$ 450,169 113,186 136,082 Business-type activities
Net inv estment in ca pital assets 3 6 4,493$ 422,610$ 371,526$ 449,141$ Res tri cted 144 ,017 133,791 176,248 153,241
Unres tri cted 185,593 159,948 114,512 131,037
Tot al business-t ype activities net position 6 9 4,103$ 716,349$ 662,286$ 733,419$ Primary government
Net inv estment in ca pital assets 7 9 4,946$ 841,938.00$ 779,721.00$ 854,999.00$ Res tri cted 207 ,650 194,383 220,574 209,291
Unres tri cted 144,547 130,197 (224,824) (194,789) To
tal pri ma ry gov ernment net position 1 ,147,143$ 1,166,518$ 775 ,471$ 869,501$ Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 225 Financial Trends
2017 2018 2019 2020 2021 2022
418,266$ 439,355$ 458,378$ 470,689$ 468,005$ 471,778$ 55,477 69,730 79,205 84,006 82,123 81,495
(310,488) (362,358) (362,242) (364,572) (390,132) (403,721) 163,254 146,726 175,341 190,123 159,996 149,553$ 408,944$ 420,692$ 434,358$ 458,534$ 486,944$ 499,719$ 171,545 152,811 142,806 128,220 126,668 109,474 183,279 199,209 230,707 244,811 240,454 270,029 763,768$ 772,712$ 807,871$ 831,565$ 854,066$ 879,222$ 827,210.00$ 860,047.00$ 892,736.00$ 929,223.00$ 954,949.00$ 971,497$ 227,022 222,541 222,011 212,226 208,791 190,969 (127,209) (163,149) (131,535) (119,761) (149,678) (133,691) 927,023$ 919,439$ 983,212$ 1,021,688$ 1,014,062$ 1,028,775$ Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
226 Annual Comprehensive Financial Report | June 30, 2022 Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(in Thousands)
2013 2014 2015 2016
Expenses
Governmental activities:

General gov ernment 54,650$ 53,260$ 38,902$ 59,425$ Publ i c s a fety 105,541 104,708 106,327 96,484 Trans portation 45,045 59,581 49,526 35,739
Ut ility - - - -
Sanitation 3,744 4,106 4,232 4,267
Health 14,228 14,239 13,764 10,914
C ultur e and leisur e 29,402 31,321 30,127 32,286 Communit y develo pment 35,156 31,669 35,248 72,725 Capit al out la y - - - -
Interest and other fiscal char ges 3,142 11,047 10,310 9,187 Total gov ernmental activ ities ex penses 290,908$ 309,931$ 288,436$ 321,027$ Business-type activities:

Electric 183 ,202$ 177,590$ 171,282$ 174,858$ Water 46 ,484 51,054 48,462 45,240
Refuse 13,185 13,022 12,843 14,421
Pa rki ng 12,229 14,556 13,532 14,488
Telecommuni cati on 827 849 89 141
Tot al business-t ype activ ities ex penses 255,927 257,071 246,208 249,148 Total pri ma ry gov ernment ex penses 546,835$ 567,002$ 534,644$ 570,175$ Program Revenues
Governmental activities:

Cha rges for serv ices:

General gov ernment 17,563$ 17,872$ 18,750$ 18,053$ Public safet y 13,370 13,050 14,674 14,841
Trans portation 13,784 14,253 16,059 16,384
Sanitation 7,083 8,010 7,875 7,008
Health 741 797 1,022 644
Culture and leisure 2,975 3,382 3,566 4,504
Communit y develo pment 9,085 12,935 12,630 14,193 Operatin g grants and contributions 38,350 35,948 41,943 40,422 Capit al grants and contributions 7,116 16,504 16,197 15,383 Total governmental activities progra m revenues 110,067$ 122,751$ 132,716$ 131,432$ Business-type activities:

Cha rges for s ervi ces :

Electric 190 ,071$ 188,174$ 203,748$ 199,197$ Water 58 ,536 61,233 57,440 50,835
Refuse 12,057 11,925 11,959 11,880
Pa rki ng 12,783 13,334 13,603 14,621
Telecommuni ca ti on 580 816 655 609
Operatin g grants and contributions - - - -
Capital grants and contributions 1,933 2,828 2,905 2,790 Total business-t ype activ ities progra m revenues 275,960 278,310 290,310 279,932 Total pri ma ry government program revenues 386,027$ 401,061$ 423,026$ 411,364$ Net Revenues (Expenses)
Governmental activities (180,841) (187,180) (155,720) (189,595) Business-t ype activities 20,033 21 ,239 44,102 30 ,784 Total net revenues (expenses ) (160,808)$ (165,941)$ (111,618)$ (158,811)$ Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 227 Financial Trends
2017 2018 2019 2020 2021 2022
42,895$ 45,755$ 49,619$ 67 ,355$ 72 ,811$ 86,104$ 127,760 142,495 145,937 152,889 148,287 151,005 41,738 46,452 52,239 55,429 48,597 44,752 - - - 6,134 171 124
4,290 4,376 4,117 4,600 6,783 6,091 10,558 11,347 13,401 15,367 17,465 17,062 34,249 38,365 37,135 37,224 45,291 48,529 39,787 45,114 47,304 52,019 57,362 62,727 - - - - - -
8,611 8,411 7,889 6,425 6,500 6,364 309,888$ 342 ,315$ 357,641$ 397 ,442$ 403 ,267$ 422 ,757$ 183,522$ 187 ,872$ 196 ,874$ 197 ,138$ 196 ,389$ 196,718$ 48,009 54,757 56,738 58,974 63,933 61,518 14,330 15,695 16,528 19,429 20,059 18,818 13,062 14,140 14,502 14,713 12,097 10,901 110 144 170 164 189 163
259,033 272,608 284,812 290,418 292,667 288,117 568,921$ 614 ,923$ 642 ,453$ 687 ,860$ 695 ,934$ $ 710 ,875 14,651$ 10,861$ 11,203$ 20,245$ 13,504 $ 12,984 $ 19,244 15,708 15,297 13,656 10,322 13,736 16,663 28,165 30,555 26,933 20,811 16,607 7,127 7,665 8,193 7,728 7,321 7,301 870 2,346 2,432 2,497 2,154 2,168
5,870 3,181 2,748 1,725 674 1,096
15,803 13,286 14,954 12,487 11,795 14,470 41,050 47,058 59,763 56,837 60,764 80,747 9,083 14,190 8,582 36,663 9,449 10,184 130,361$ 142 ,460$ 153,727$ 178 ,771$ 136 ,794$ $ 159 ,292 202,480$ 212 ,116$ 218 ,054$ 217 ,873$ 222 ,266$ 226,509$ 58,287 62,592 60,181 62,466 71,269 69,359 11,775 11,413 11,743 11,644 11,502 11,864 14,595 14,560 13,977 11,229 9,198 11,066 669 471 680 439 568 776
- 2,355 1,462 1,784 2,777 6,188
4,811 4,112 3,615 2,934 4,248 4,559
292,617 307,619 309,712 308,369 321,828 330,320 422,978$ 450 ,079$ 463,439$ 487 ,140$ 458 ,622$ $ 489 ,613 (179,527) (199,855) (203,914) (218,671) (266,473) (263,465) 33 ,584 35 ,011 24,900 17,951 29,161 42,203 (145,943)$ (164,844)$ (179,014)$ (200,720)$ (237,312)$ $ (221,262) Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
228 Annual Comprehensive Financial Report | June 30, 2022 Changes in Net Position (continued)

Last Ten Fiscal Years
(Accrual Basis of Accounting)
(in Thousands)
2013 2014 2015 2016
General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Proper ty tax, lev ied for general purpose 42,957$ 44,066$ 56,446$ 59,141$ Sales tax 30 ,871 33,198 33,706 36,855
Utilit y users' tax 29,531 28,893 29,316 28,100 Transient occu panc y ta x 11,109 12,043 13,165 14,864 Construction tax 2,066 3,682 4,770 4,375
Business lic ense t ax 5,230 5,633 5,836 6,483
Franchise tax 2,063 2,361 2,903 2,542
Other taxes 6,532 7,088 7,181 7,335
Other inter governmental 15,187 15,924 16,648 18,005 Use of mone y - inv estment ear nin gs2 ,681 4,833 4,461 4,955 Use of property - lease activit y - - - -
Net chan ge in fair v alue of inv estments - - - - Gain on sale of asset s 4 2 4 1,153 370 (60)
M
isc ellaneous r ev enues 4,023 4,655 4,863 14,621 Reinstatement of PC DC Loan - - - 11,128
Transfers 22,083 16,305 14,657 15,033
Ex tr aor dinary gain (2,197) - - -
Total governmental activities $ 172 ,560 $ 179 ,834 $ 194 ,322 $ 223 ,376 Business-type activities:

Taxes:

Franchise tax 3 ,825$ 3,907$ 4,319$ 4,575$
Use of mone y - inv estment ear nin gs4 ,743 7,136 5,529 6,593 Use of property - lease activit y - - - -
Net chan ge in fair v alue of inv estments - - - - Gain on sale of asset s (92) (1,161) - (311)
M
isc ellaneous r ev enues 2 0,614 8,977 15,631 42,427 Transfers (20,974) (16,305) (14,657) (15,033)
To
tal business-t ype activities 8,116 2,554 10,822 38,252 Total pri ma ry government $ 180 ,676 $ 182 ,388 $ 205 ,144 $ 261 ,627 Changes in Net Position
Governmental activities (8,281) (7,346) 38,602 33,781 Business-t ype activities 28,149 23 ,793 54,924 69,036 Total pri ma ry government $ 19 ,868.00 $ 16 ,447 $ 93 ,526 $ 102 ,816 Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 229 Financial Trends
2017 2018 2019 2020 2021 2022
68,752$ 63,483$ 68,275$ 70,689$ 76,579$ 79,144$ 35,708 35,076 44,616 57,513 62,308 74,366
28,251 27,881 26,982 26,966 26,938 30,124
15,229 15,814 16,948 13,090 6,298 14,711
3,491 3,265 4,985 4,091 2,097 2,626
6,347 7,196 7,302 6,900 6,351 5,890
2,797 2,733 2,881 2,827 2,813 2,730
7,298 7,449 7,286 1,614 5,661 16,309
18,259 19,996 20,345 20,831 25,424 23,797
1,857 3,008 10,922 8,231 2,518 2,239
- - - - - 731
-
- - - - (
15,262)
- (299) - 2,288 - -
8,224 11,372 8,270 5,493 3,091 4,664
- - - - - -
18,652 18,766 13,976 14,349 16,267 10,954
- - - - - -
$ 214 ,865 $ 215 ,740 $ 232 ,788 $ 234 ,882 $ 236 ,345 $ 253 ,022 4,893$ 5,359$ 5,787$ 6,083$ 5,722$ 6,162$ 2,372 2,506 16,216 10,940 1,033 2,793
- - - - - 395
-
- - - - (
25,439)
- (49) (1,114) - - (167)
8,154 2,552 3,346 3,069 2,852 10,571
(18,652) (18,766) (13,976) (14,349) (16,266) (11,362) (3,234) (8,398) 10,259 5,743 (6,659) (17,048)
$ 211 ,631 $ 207 ,342 $ 243 ,047 $ 240 ,625 $ 229 ,686 $ 235 ,974 35,338 15 ,885 28,874 16,211 (30,128) (10,443) 30,351 26 ,613 35,159 23,694 22,502 25,155
$ 65 ,688 $ 42 ,498 $ 64 ,033 $ 39 ,905 $ (7,626) $ 14 ,712 Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
230 Annual Comprehensive Financial Report | June 30, 2022 Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(in Thousands)
2013 2014 2015 2016
General Fund:

Nons pendable 8,351$ 8,352$ 8,620$ 12 ,236$
Restricted - - 400 400
Committed 37,380 34,868 30,951 33,451
A ssigned 4,249 5,043 11,087 17,227
Unassi gned 11,965 15,015 12,140 15,139
Total Gener al Fund 6 1,945 63,278 63,198 78,453
All Other Governmental Funds:

Nons pendable 33,356 31,674 30,997 7,799
Restricted 69,676 57,300 52,516 55,650
Committed 62,629 72,479 87,144 101,338
Assigned - - - -
Unassi gned (4,265) (7,981) (7,482) (8,126)
T
otal all other Gov er nmental Funds 1 6 1,396 153,472 163,175 156,661 Tota l Governmenta l Funds 223,341$ 216 ,750$ 226 ,373$ 235 ,114$ Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 231 Financial Trends

2017 2018 2019 2020 2021 2022
11,108$ 4,545$ 1 ,590$ 14 ,853$ 13,626$ 13,697$ 400 10,995 11 ,631 12 ,106 13,718 12,101 47,563 46,949 50 ,775 55 ,120 51,687 57,339 26,825 12,426 15 ,099 25 ,082 31,326 23,079 3,832 11,957 19 ,605 445 (11,294) - 89,727 86,872 98 ,700 107 ,606 99,063 106,216 2,482 1,574 1 ,478 1 ,554 1,550 1,582 55,077 58,597 67 ,575 71 ,848 68,307 64,846 106,631 108,569 121 ,002 115 ,446 111,319 102,213 - - - 1,652 1,944 2,775 (10,950) (2,273) (3,574) (5,180) (6,133) (9,480) 153,240 166,467 186 ,481 185 ,320 176,987 161,937$ 242,967$ 253,339$ 285 ,181$ 292 ,926$ 276,050$ 268,152$ Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
232 Annual Comprehensive Financial Report | June 30, 2022 Changes in Fund Balanc
es of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(in Thousands)
2013 2014 2015 2016
Revenues:

Ta xes 130,356$ 136,965$ 153,323$ 159,694$
Li cens es a nd permits 9,196 13,675 11,235 14,946 Inter gov ernmental rev enues 58,988 61,505 63,785 65,299 Cha rges for s ervi ces 42,006 43,416 49,413 46,984 Fines and forfeits 7,453 6,768 7,329 7,378
Inv estment earnin gs1 1,041 5,255 4,294 4,780
Net chan ge in fair v alue of inv estments - - - - Lea s e revenues 4,355 4,064 3,822 4,212
Interest - leases (as lessor ) - - - -
M isc ellaneous r ev enues 6,172 6,081 7,133 16,341 Contributions 1,534 7,807 11,759 6,496
Tota l revenues 271,101 285,536 312,093 326,130
Expenditures:

Current:

General gov ernment 30,977 34,613 44,283 47,488
Publ i c s a fety 99,680 99,871 106,469 111,012
Trans porta tion 34,419 36,912 37,018 35,282
Utilit y - - - -
Sanitation 3,744 4,106 4,274 4,356
Health 13,480 13,551 13,553 11,294
C ultur e and leisur e 2 8,240 30,039 30,505 32,241 Communit y develo pment 32,447 29,579 31,933 60,841 Capit al outla y 24,907 23,571 16,855 29,032
Debt service:

Pri ncipa l reti rement 20,415 20,808 129,469 6,611 Interes t 10,783 9,797 8,730 8,139
Bond issuanc e c ost s - - - -
Int er est - leases (as lessee) - - - -
Lea s e pa yments - - - -
Tota l expendi tures 299,092 302,847 423,089 346,296 Ex c ess (defic ienc y ) of r ev enues
over (under) expendi tures (27,991) (17,311) (110,996) (20,166) Other financing sources (uses):

Premi um (discount ) on debt issued (459) - - (2,283) I
ssuanc e of lon g-term debt 51,097 841 351 119,460
Payment to refunded bond escrow a gent - - - -
P r oc eeds fr om sale of c apit al asset s - - - - Transfers in 81,635 84,444 61,085 51,606
Transfers out (63,131) (65,045) (50,718) (38,028)
L
eases issued - - - -
Reinstatement of P C DC L oan - - - -
Transfers to com ponent units - - - -
Tot al ot her financ ing sour c es (uses) 6 9 ,1 4 2 20,240 10,718 130,755 Extraordinary gain (loss): - - 152,582 (2,197)
N
et cha nge i n fund ba l a nces 41,151$ 2,929$ 52,304$ 108,392$ Debt ser v ic e as a per c ent age of
nonca pi ta l expendi tures 11.4% 11.0% 34.0% 4.6%
Fiscal Year

CITY OF PASADENA STATISTICAL SECTION

Annual Comprehensive Financial Report | June 30, 2022 233 Financial Trends

2017 2018 2019 2020 2021 2022
167,874$ 162 ,898$ 179 ,275$ 183 ,689$ 189 ,044$ 225 ,899$ 14,882 15 ,022 13 ,979 13 ,297 12 ,791 15 ,283 62,121 74 ,093 75 ,237 78 ,475 87 ,260 106 ,225 49,324 53 ,417 59 ,111 53 ,066 45 ,996 43 ,548 7,802 7 ,262 6 ,377 6 ,520 3 ,491 4 ,190 1,752 1 ,597 9 ,207 7 ,536 2 ,445 2 ,170 - - - - - (14,844) 4,765 4 ,418 4 ,326 10 ,748 3 ,252 4 ,512 - - - - - 9 12,072 14 ,240 11 ,929 7 ,082 5 ,792 8 ,227 5,397 5,512 12,476 8,103 3,630 3,089 325,989 338,459 371,917 368,516 353,701 398,306 42,054 38 ,611 40 ,655 73 ,958 65 ,554 63 ,810 116,577 126 ,827 133 ,461 138 ,942 138 ,803 147 ,560 40,196 45 ,078 49 ,621 50 ,298 44 ,110 40 ,795 - - - 6 ,134 171 124 4,324 4 ,352 4 ,300 4 ,493 6 ,669 6 ,037 10,309 10 ,977 12 ,522 14 ,250 16 ,265 16 ,505 32,663 37 ,111 34 ,529 34 ,266 41 ,355 45 ,876 34,370 39 ,365 40 ,599 45 ,126 47 ,952 55 ,694 32,254 28 ,707 21 ,492 23 ,795 15 ,985 25 ,020 6,345 10 ,520 5 ,996 5 ,572 5 ,117 5 ,416 8,744 8,558 8,220 6,081 6,559 6,394 - - - 562 - - - - - - - 32 - - - - - 1,116 327,836 350,106 351,395 403,477 388,540 414,379 (1,847) (11,647) 20,522 (34,961) (34,839) (16,072) 5,790 - - - - - 60,460 - - 138 ,605 - - (60,762) - - (131,154) - - - - - 31,819 - - 121,920 80 ,737 76 ,926 72 ,394 67 ,461 73 ,495 (109,631) (62,326) (62,000) (67,530) (49,497) (65,023) - - - - - 110 11,128 - - - - - - - - - - (408) 28,905 18,411 14,926 44,134 17,964 8,174 - - - - - - 27,058$ 6,764 $ 35,448 $ 9,173 $ (16,875) $ (7,898) $

Pasadena City CouncilApril 24, 2023

Pasadena City Council
April 24, 2023