Finance Committee
April 24, 2023

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 governmental funds. T h erefore, long-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 Total 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 Net OPEB liability 19,371,840 - (4,852,710) 14,519,130 - 14,519,130 Lease liability 2,642,494 50,710 (1,316,721) 1,376,483 964,062 412,421 Total 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) Pr
eviously presented as notes for long-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.

Fiduciary F
unds – 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 Lo
ng-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 am
ortize 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)
Disclosure
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)
Disclosure
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) the City will abandon or vacate the Leased Property or any portion thereof (except as permitted by the Sublease); then in each and every such case the City will be deemed to be default under the Sublease.

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

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)
Disclosure
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 other term or provision of the Lease to be kept or performed by the City or (ii) to exercise any and all rights of entry and re-entry upon the Leased Premises as provided.

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

Should the Authority elect to re-enter as provided in the Lease, the City irrevocably appoints the Authority as the agent and attorney-in-fact of the City to re-let the Leased Premises, or any part thereof, from time to time, either in the Authority’s name or otherwise, fo r use as public off-str eet vehicular parking fac ility upon such terms and conditions and for such period as the authority may deem advisable and, subject to the provisions of the Development Agreement, to remove all persons in possession thereof and all personal property whosesoever situated in and upon the Leased Premises and to place such personal property in storage in any warehouse or other suitable place in the County of Los Angeles, State of California, for the account of and at the expense of the City, and the City exempts and agrees to save harmless the Authority from any costs, loss or damage whatsoever arising out of, in connection with, or incident to any such re-entry upon and re-letting of the Lease Premises and removal storage of such property by the Authority or its duly authorized agents in accordance with the provisions contained in the Lease; provided, however, that any such re-entry upon and re-letting of the Leased Premises its subject to the provisions of the Development Agreements.

The City agrees that the terms of the Lease constitute full and sufficient notice of the 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 surrender or termination of 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 and exclusive manner provided for in the Lease.

The City further waivers the right to any rental obtained by the Authority in excess of the rental specified in the Lease and conveys and releases such excess to the Authority as 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)
Disclosure
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 order:
(1) To the 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 Indenture;
(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 each 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)
Disclosure
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, 2010ABD, 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 terms of the Lease, with the consent of the Majority Holder, to (i) exercise any and all remedies available or granted 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 any agreement, 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 event 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 possession 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 no right upon an event of default under the sublease by the city to accelerate the rental payments, terminate the sublease or re-enter the leased property.
(11) Derivative Instruments
Discretely Pre
sented Component Units
Pasadena Cent
er Operating Company (PCOC)
Conference Center Variable Rate Demand Refunding Certificates of Participation – SWAP No. 2 On Septem
ber 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 hedgi ng 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) On
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 (Conference 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 certificates 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 Ending
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 v
alue measurements 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:

Le vel
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
Fund B
alances, Governmental Funds
On the Governmental Balance Sheet, the fund balances
are reported in the aggregate in the classifications defined by GASB 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 Non-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 - - 813 - 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 S
afety
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 B
alances, 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 re
ported 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) Management’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 an
d 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 is a summary of transfers in a
nd out for the year ended June 30, 2022:

General
Project Debt Non-Major
General 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 from 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-aided dispatch 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:
• $11,802,558 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 City 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 o ut 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 per occurrence 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: Medical 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 t o 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 liability 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 statutory workers’ compensation insurance with no retention. Brookside 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 in 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 prior 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. Worker s’ Compensation claims payable amounted to $40,978,607 of which $16,451,651 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 th
e benefit of its employees, the City has adopted a deferred compensation plan in accordance with Section 457 of the Internal 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 contract 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 ensure 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)
Pasadena Fire
and Police Retirement System (FPRS)
Plan Description
FPRS (t
he 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, except 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 agreement with the City. Once transferred to CalPERS, retirement benefits for all fire and police personnel employed thereafter 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 Misc
ellaneous and Safety Plans
Plan Description
All qualified
permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan and Safety Plan (Plans), agent multiple-employer defined bene fit pension plans administered by the California Public Employees’ 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 public ly 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 living adjustments and death benefits to plan members, who must be public employees and beneficiar ies. Benefits are based on years of credited service, equal to one 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 death 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 specified by the Public Employees’ 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
Employees Co
vered
At the measurement 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
Inactive employees entitled to but
not yet receiving benefits 1,116 145
Active employees 1,408 357
Total 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 Misc
ellaneous and Safety Plans (Continued)
Contribution Description
Section 2
0814(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 notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the diffe rence between the actuarially determined rate and the contribution 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. The City made contributions to the Miscellaneous and Safety Plans during the fiscal year ended June 30, 2022 of $40,463,358 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 ra
te 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 expecte
d 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 and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, Ca lPERS took into account both short-term and long-term market return 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 years) and the long-term (11+ years) using a building-block appr oach. 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 benefits 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 administrative expenses.

The expected 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 So
urce: 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 inc
luded in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.

Subs
equent 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 meas urement 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 percentage-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
Subseque
nt Events (as measurement period is from July 1, 2020 through June 30, 2021) 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. 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 Expen
se and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of June
30, 2022, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Deferred Deferred Deferred Deferred Deferred
Outflows 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)
Contributions 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
Defined Co
ntribution 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) Cont
ributions
The City
contributes the minimum amount allowed under Government Code Section 22825 of the PEMHCA enacted by CalPERS 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 trust account, which 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 market value of the OPEB Section 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 2.80% 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 than 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 asset allocation percentage 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 OP
EB 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
Interest 2,181,093 - 2,181,093
Difference between expected and
actual experience 874,222 - 874,222
Changes of Assumptions (26,576,119) - (26,576,119)
Contribution - Employer - 2,833,350 (2,833,350)
Net Investment Income - (300,832) 300,832
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 Govern
ment
“Take or Pay” Contracts
The City’s elec
tric operation has entered into various long term “Take or Pay” contracts to provide for current and future electric 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 purchase energy over the life of the contract. The contracts expire at various times through fiscal year 2036. The total commitment under these contracts as of June 30, 2022 is $113 million.

Additional 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.

Stranded Investments
In response to California Asse
mbly 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 City 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.

Additional 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 su
its 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 grantor
agencies. City management is of the op inion that adjustments, if any, resulting from 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
Subsequent ev
ents 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 requ ires 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 November 8, 2
022, 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.

Approximately, $3 million is generated annually from the tax and is adjusted annually by the Consumer Price Index as outlined 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 55,294,880
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 99,06
3,289 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 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.

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.

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
Fiscal 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, and as required by applicable Contribution Agreement with the City. Additional years will be presented as they become available.

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 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$ 83,758, 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) Rest
ricted 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)
To
tal 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$

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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 Un derground
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) 16,517,880 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) Lea
ses i ss ued - - - - -
Total other financing sources (uses) (805,198) 1,081,813 (243,386) (2,767,099) (8,439,463) Net
change in fund balances 1,198,974 (1,100,573) 1,414,765 367,035 (4,396,086) Fund
balances (deficit ) at beginnin g of year 3,687,821 (6,115,532) 15,103,115 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) Inv
estment earnin gs1 34,600 134,600 133,052 (1,548) Net
chan ge in fair v alue of inv estments - - (887,897) (887,897) Mi
scellaneous revenues 54,000 54,000 44,977 (9,023) Tot
al 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)
To
tal other financing sources (uses) - (50,000) (243,386) (193,386) Net
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) To
tal 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) Fu
nd 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) Co
ntri 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 $

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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) 613,206 (6,341,195) Nonoperating 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) Gain
(loss ) on dis posal of assets (4,680) - (4,680)
Lea
se 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)
Cha
nges 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) Other revenue 58,701 - 58,701
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 - 266,764 266,764
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 - 261,541
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) Proceeds from lease activities - 51,212 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) Ca
pital 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) Le
ase 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) -
Ne
t 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) Proceeds 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 2,2 27,435 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$

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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
Annu al 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) Res
tri cted for debt s ervi ce 11,188,835 - 11,188,835
Unres tri cted (20,645,788) 14,348,384 (6,297,404)
Tot
al 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) Int
erest ex pense (12,275,424) - (12,275,424)
Co
ntribution 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.