Finance Committee
April 24, 2023

STATISTICAL SECTION CITY OF PASADENA
224 Annual Comprehensive Financial Report | June 30, 2022 Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(in Thousands)
2013 2014 2015 2016
Governmental activities
Net inv estment in ca pital assets 4 3 0,453$ 419,328$ 408,195$ 405,858$ Restricted 63 ,633 60,592 44,327 56,050
Unres tri cted (41,046) (29,751) (339,336) (325,826) Tota
l governmental activities net position 4 5 3,040$ 450,169 113,186 136,082 Business-type activities
Net inv estment in ca pital assets 3 6 4,493$ 422,610$ 371,526$ 449,141$ Res tri cted 144 ,017 133,791 176,248 153,241
Unres tri cted 185,593 159,948 114,512 131,037
Tot al business-t ype activities net position 6 9 4,103$ 716,349$ 662,286$ 733,419$ Primary government
Net inv estment in ca pital assets 7 9 4,946$ 841,938.00$ 779,721.00$ 854,999.00$ Res tri cted 207 ,650 194,383 220,574 209,291
Unres tri cted 144,547 130,197 (224,824) (194,789) Tota
l pri ma ry gov ernment net position 1 ,147,143$ 1,166,518$ 775 ,471$ 869,501$ Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 225 Financial Trends
2017 2018 2019 2020 2021 2022
418,266$ 439,355$ 458,378$ 470,689$ 468,005$ 471,778$ 55,477 69,730 79,205 84,006 82,123 81,495
(310,488) (362,358) (362,242) (364,572) (390,132) (403,721) 163,254 146,726 175,341 190,123 159,996 149,553$ 408,944$ 420,692$ 434,358$ 458,534$ 486,944$ 499,719$ 171,545 152,811 142,806 128,220 126,668 109,474 183,279 199,209 230,707 244,811 240,454 270,029 763,768$ 772,712$ 807,871$ 831,565$ 854,066$ 879,222$ 827,210.00$ 860,047.00$ 892,736.00$ 929,223.00$ 954,949.00$ 971,497$ 227,022 222,541 222,011 212,226 208,791 190,969 (127,209) (163,149) (131,535) (119,761) (149,678) (133,691) 927,023$ 919,439$ 983,212$ 1,021,688$ 1,014,062$ 1,028,775$ Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
226 Annual Comprehensive Financial Report | June 30, 2022 Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(in Thousands)
2013 2014 2015 2016
Expenses
Governmental activities:

General gov ernment 54,650$ 53,260$ 38,902$ 59,425$ Publ i c s a fety 105,541 104,708 106,327 96,484 Trans portation 45,045 59,581 49,526 35,739
Ut ility - - - -
Sanitation 3,744 4,106 4,232 4,267
Health 14,228 14,239 13,764 10,914
C ultur e and leisur e 29,402 31,321 30,127 32,286 Communit y develo pment 35,156 31,669 35,248 72,725 Capit al out la y - - - -
Interest and other fiscal char ges 3,142 11,047 10,310 9,187 Total gov ernmental activ ities ex penses 290,908$ 309,931$ 288,436$ 321,027$ Business-type activities:

Electric 183 ,202$ 177,590$ 171,282$ 174,858$ Water 46 ,484 51,054 48,462 45,240
Refuse 13,185 13,022 12,843 14,421
Pa rki ng 12,229 14,556 13,532 14,488
Telecommuni cati on 827 849 89 141
Tot al business-t ype activ ities ex penses 255,927 257,071 246,208 249,148 Total pri ma ry gov ernment ex penses 546,835$ 567,002$ 534,644$ 570,175$ Program Revenues
Governmental activities:

Cha rges for serv ices:

General gov ernment 17,563$ 17,872$ 18,750$ 18,053$ Public safet y 13,370 13,050 14,674 14,841
Trans portation 13,784 14,253 16,059 16,384
Sanitation 7,083 8,010 7,875 7,008
Health 741 797 1,022 644
Culture and leisure 2,975 3,382 3,566 4,504
Communit y develo pment 9,085 12,935 12,630 14,193 Operatin g grants and contributions 38,350 35,948 41,943 40,422 Capit al grants and contributions 7,116 16,504 16,197 15,383 Total governmental activities progra m revenues 110,067$ 122,751$ 132,716$ 131,432$ Business-type activities:

Cha rges for s ervi ces :

Electric 190 ,071$ 188,174$ 203,748$ 199,197$ Water 58 ,536 61,233 57,440 50,835
Refuse 12,057 11,925 11,959 11,880
Pa rki ng 12,783 13,334 13,603 14,621
Telecommuni ca ti on 580 816 655 609
Operatin g grants and contributions - - - -
Capital grants and contributions 1,933 2,828 2,905 2,790 Total business-t ype activ ities progra m revenues 275,960 278,310 290,310 279,932 Total pri ma ry government program revenues 386,027$ 401,061$ 423,026$ 411,364$ Net Revenues (Expenses)
Governmental activities (180,841) (187,180) (155,720) (189,595) Business-t ype activities 20,033 21 ,239 44,102 30 ,784 Total net revenues (expenses ) (160,808)$ (165,941)$ (111,618)$ (158,811)$ Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 227 Financial Trends
2017 2018 2019 2020 2021 2022
42,895$ 45,755$ 49,619$ 67 ,355$ 72 ,811$ 86,104$ 127,760 142,495 145,937 152,889 148,287 151,005 41,738 46,452 52,239 55,429 48,597 44,752 - - - 6,134 171 124
4,290 4,376 4,117 4,600 6,783 6,091 10,558 11,347 13,401 15,367 17,465 17,062 34,249 38,365 37,135 37,224 45,291 48,529 39,787 45,114 47,304 52,019 57,362 62,727 - - - - - -
8,611 8,411 7,889 6,425 6,500 6,364 309,888$ 342 ,315$ 357,641$ 397 ,442$ 403 ,267$ 422 ,757$ 183,522$ 187 ,872$ 196 ,874$ 197 ,138$ 196 ,389$ 196,718$ 48,009 54,757 56,738 58,974 63,933 61,518 14,330 15,695 16,528 19,429 20,059 18,818 13,062 14,140 14,502 14,713 12,097 10,901 110 144 170 164 189 163
259,033 272,608 284,812 290,418 292,667 288,117 568,921$ 614 ,923$ 642 ,453$ 687 ,860$ 695 ,934$ $ 710 ,875 14,651$ 10,861$ 11,203$ 20,245$ 13,504 $ 12,984 $ 19,244 15,708 15,297 13,656 10,322 13,736 16,663 28,165 30,555 26,933 20,811 16,607 7,127 7,665 8,193 7,728 7,321 7,301 870 2,346 2,432 2,497 2,154 2,168
5,870 3,181 2,748 1,725 674 1,096
15,803 13,286 14,954 12,487 11,795 14,470 41,050 47,058 59,763 56,837 60,764 80,747 9,083 14,190 8,582 36,663 9,449 10,184 130,361$ 142 ,460$ 153,727$ 178 ,771$ 136 ,794$ $ 159 ,292 202,480$ 212 ,116$ 218 ,054$ 217 ,873$ 222 ,266$ 226,509$ 58,287 62,592 60,181 62,466 71,269 69,359 11,775 11,413 11,743 11,644 11,502 11,864 14,595 14,560 13,977 11,229 9,198 11,066 669 471 680 439 568 776
- 2,355 1,462 1,784 2,777 6,188
4,811 4,112 3,615 2,934 4,248 4,559
292,617 307,619 309,712 308,369 321,828 330,320 422,978$ 450 ,079$ 463,439$ 487 ,140$ 458 ,622$ $ 489 ,613 (179,527) (199,855) (203,914) (218,671) (266,473) (263,465) 3 3,584 35 ,011 24,900 17,951 29,161 42,203 (145,943)$ (164,844)$ (179,014)$ (200,720)$ (237,312)$ $ (221,262) Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
228 Annual Comprehensive Financial Report | June 30, 2022 Changes in Net Position (continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(in Thousands)
2013 2014 2015 2016
General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Proper ty tax, lev ied for general purpose 42,957$ 44,066$ 56,446$ 59,141$ Sales tax 30 ,871 33,198 33,706 36,855
Utilit y users' tax 29,531 28,893 29,316 28,100 Transient occu panc y ta x 11,109 12,043 13,165 14,864 Construction tax 2,066 3,682 4,770 4,375
Business lic ense t ax 5,230 5,633 5,836 6,483
Franchise tax 2,063 2,361 2,903 2,542
Other taxes 6,532 7,088 7,181 7,335
Other inter governmental 15,187 15,924 16,648 18,005 Use of mone y - inv estment ear nin gs2 ,681 4,833 4,461 4,955 Use of property - lease activit y - - - -
Net chan ge in fair v alue of inv estments - - - - Gain on sale of asset s 4 2 4 1,153 370 (60)
M isc
ellaneous r ev enues 4,023 4,655 4,863 14,621
Reinstatement of PC DC Loan - - - 11,128
Transfers 22,083 16,305 14,657 15,033
Ex tr aor dinary gain (2,197) - - -
Total governmental activities $ 172 ,560 $ 179 ,834 $ 194 ,322 $ 223 ,376 Business-type activities:

Taxes:

Franchise tax 3 ,825$ 3,907$ 4,319$ 4,575$
Use of mone y - inv estment ear nin gs4 ,743 7,136 5,529 6,593 Use of property - lease activit y - - - -
Net chan ge in fair v alue of inv estments - - - - Gain on sale of asset s (92) (1,161) - (311)
M isc
ellaneous r ev enues 2 0,614 8,977 15,631 42,427
Transfers (20,974) (16,305) (14,657) (15,033)
Tota
l business-t ype activities 8,116 2,554 10,822 38,252 Total pri ma ry government $ 180 ,676 $ 182 ,388 $ 205 ,144 $ 261 ,627 Changes in Net Position
Governmental activities (8,281) (7,346) 38,602 33,781 Business-t ype activities 28,149 23 ,793 54,924 69,036 Total pri ma ry government $ 19 ,868.00 $ 16 ,447 $ 93 ,526 $ 102 ,816 Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 229 Financial Trends
2017 2018 2019 2020 2021 2022
68,752$ 63,483$ 68,275$ 70,689$ 76,579$ 79,144$ 35,708 35,076 44,616 57,513 62,308 74,366
28,251 27,881 26,982 26,966 26,938 30,124
15,229 15,814 16,948 13,090 6,298 14,711
3,491 3,265 4,985 4,091 2,097 2,626
6,347 7,196 7,302 6,900 6,351 5,890
2,797 2,733 2,881 2,827 2,813 2,730
7,298 7,449 7,286 1,614 5,661 16,309
18,259 19,996 20,345 20,831 25,424 23,797
1,857 3,008 10,922 8,231 2,518 2,239
- - - - - 731
- - - - - (15,262)
- (299) - 2,288 - -
8,224 11,372 8,270 5,493 3,091 4,664
- - - - - -
18,652 18,766 13,976 14,349 16,267 10,954
- - - - - -
$ 214 ,865 $ 215 ,740 $ 232 ,788 $ 234 ,882 $ 236 ,345 $ 253 ,022 4,893$ 5,359$ 5,787$ 6,083$ 5,722$ 6,162$ 2,372 2,506 16,216 10,940 1,033 2,793
- - - - - 395
- - - - - (25,439)
- (49) (1,114) - - (167)
8,154 2,552 3,346 3,069 2,852 10,571
(18,652) (18,766) (13,976) (14,349) (16,266) (11,362) (3,234) (8,398) 10,259 5,743 (6,659) (17,048)
$ 211 ,631 $ 207 ,342 $ 243 ,047 $ 240 ,625 $ 229 ,686 $ 235 ,974 35,338 15 ,885 28,874 16,211 (30,128) (10,443) 30,351 26 ,613 35,159 23,694 22,502 25,155
$ 65 ,688 $ 42 ,498 $ 64 ,033 $ 39 ,905 $ (7,626) $ 14 ,712 Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
230 Annual Comprehensive Financial Report | June 30, 2022 Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(in Thousands)
2013 2014 2015 2016
General Fund:

Nons pendable 8,351$ 8,352$ 8,620$ 12 ,236$
Restricted - - 400 400
Committed 37,380 34,868 30,951 33,451
A ssigned 4,249 5,043 11,087 17,227
Unassi gned 11,965 15,015 12,140 15,139
Total Gener al Fund 6 1,945 63,278 63,198 78,453
All Other Governmental Funds:

Nons pendable 33,356 31,674 30,997 7,799
Restricted 69,676 57,300 52,516 55,650
Committed 62,629 72,479 87,144 101,338
Assigned - - - -
Unassi gned (4,265) (7,981) (7,482) (8,126)
Tot
al all other Gov er nmental Funds 1 6 1,396 153,472 163,175 156,661 Tota l Governmenta l Funds 223,341$ 216 ,750$ 226 ,373$ 235 ,114$ Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 231 Financial Trends

2017 2018 2019 2020 2021 2022
11,108$ 4,545$ 1 ,590$ 14 ,853$ 13,626$ 13,697$ 400 10,995 11 ,631 12 ,106 13,718 12,101 47,563 46,949 50 ,775 55 ,120 51,687 57,339 26,825 12,426 15 ,099 25 ,082 31,326 23,079 3,832 11,957 19 ,605 445 (11,294) - 89,727 86,872 98 ,700 107 ,606 99,063 106,216 2,482 1,574 1 ,478 1 ,554 1,550 1,582 55,077 58,597 67 ,575 71 ,848 68,307 64,846 106,631 108,569 121 ,002 115 ,446 111,319 102,213 - - - 1,652 1,944 2,775 (10,950) (2,273) (3,574) (5,180) (6,133) (9,480) 153,240 166,467 186 ,481 185 ,320 176,987 161,937$ 242,967$ 253,339$ 285 ,181$ 292 ,926$ 276,050$ 268,152$ Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
232 Annual Comprehensive Financial Report | June 30, 2022 Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(in Thousands)
2013 2014 2015 2016
Revenues:

Ta xes 130,356$ 136,965$ 153,323$ 159,694$
Li cens es a nd permits 9,196 13,675 11,235 14,946 Inter gov ernmental rev enues 58,988 61,505 63,785 65,299 Cha rges for s ervi ces 42,006 43,416 49,413 46,984 Fines and forfeits 7,453 6,768 7,329 7,378
Inv estment earnin gs1 1,041 5,255 4,294 4,780
Net chan ge in fair v alue of inv estments - - - - Lea s e revenues 4,355 4,064 3,822 4,212
Interest - leases (as lessor ) - - - -
M isc ellaneous r ev enues 6,172 6,081 7,133 16,341 Contributions 1,534 7,807 11,759 6,496
Tota l revenues 271,101 285,536 312,093 326,130
Expenditures:

Current:

General gov ernment 30,977 34,613 44,283 47,488
Publ i c s a fety 99,680 99,871 106,469 111,012
Trans porta tion 34,419 36,912 37,018 35,282
Utilit y - - - -
Sanitation 3,744 4,106 4,274 4,356
Health 13,480 13,551 13,553 11,294
C ultur e and leisur e 2 8,240 30,039 30,505 32,241 Communit y develo pment 32,447 29,579 31,933 60,841 Capit al outla y 24,907 23,571 16,855 29,032
Debt service:

Pri ncipa l reti rement 20,415 20,808 129,469 6,611 Interes t 10,783 9,797 8,730 8,139
Bond issuanc e c ost s - - - -
Int er est - leases (as lessee) - - - -
Lea s e pa yments - - - -
Tota l expendi tures 299,092 302,847 423,089 346,296 Ex c ess (defic ienc y ) of r ev enues
over (under) expendi tures (27,991) (17,311) (110,996) (20,166) Other financing sources (uses):

Premi um (discount ) on debt issued (459) - - (2,283) Issu
anc e of lon g-term debt 51,097 841 351 119,460
Payment to refunded bond escrow a gent - - - -
P r oc eeds fr om sale of c apit al asset s - - - - Transfers in 81,635 84,444 61,085 51,606
Transfers out (63,131) (65,045) (50,718) (38,028)
L e
ases issued - - - -
Reinstatement of P C DC L oan - - - -
Transfers to com ponent units - - - -
Tot al ot her financ ing sour c es (uses) 6 9 ,1 4 2 20,240 10,718 130,755 Extraordinary gain (loss): - - 152,582 (2,197)
Ne
t cha nge i n fund ba l a nces 41,151$ 2,929$ 52,304$ 108,392$ Debt ser v ic e as a per c ent age of
nonca pi ta l expendi tures 11.4% 11.0% 34.0% 4.6%
Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive
Financial Report | June 30, 2022 233
Financial Trends
2017 2018 2019 2020 2021 2022
167,874$ 162,898$ 179,275$ 183,689$ 189,044$ 225,899$ 14,882 15,022 13,979 13,297 12,791 15,283
62,121 74,093 75,237 78,475 87,260 106,225
49,324 53,417 59,111 53,066 45,996 43,548
7,802 7,262 6,377 6,520 3,491 4,190
1,752 1,597 9,207 7,536 2,445 2,170
- - - - - (14,844)
4,765 4,418 4,326 10,748 3,252 4,512
- - - - - 9
12,072 14,240 11,929 7,082 5,792 8,227
5,397 5,512 12,476 8,103 3,630 3,089
325,989 338,459 371,917 368,516 353,701 398,306 42,054 38,611 40,655 73,958 65,554 63,810
116,577 126,827 133,461 138,942 138,803 147,560 40,196 45,078 49,621 50,298 44,110 40,795
- - - 6,134 171 124
4,324 4,352 4,300 4,493 6,669 6,037
10,309 10,977 12,522 14,250 16,265 16,505
32,663 37,111 34,529 34,266 41,355 45,876
34,370 39,365 40,599 45,126 47,952 55,694
32,254 28,707 21,492 23,795 15,985 25,020
6,345 10,520 5,996 5,572 5,117 5,416
8,744 8,558 8,220 6,081 6,559 6,394
- - - 562 - -
- - - - - 32
- - - - - 1,116
327,836 350,106 351,395 403,477 388,540 414,379 (1,847) (11,647) 20,522 (34,961) (34,839) (16,072) 5,790 - - - - -
60,460 - - 138,605 - -
(60,762) - - (131,154) - -
- - - 31,819 - -
121,920 80,737 76,926 72,394 67,461 73,495
(109,631) (62,326) (62,000) (67,530) (49,497) (65,023) - -
- - - 110
11,128 - - - - -
- - - - - (408)
28,905 1
8,411 14,926 44,134 17,964 8,174
- - - - - -
27,058$ 6,764$ 35,448$ 9,173$ (16,875)$ (7,898)$

5.1% 5.9% 4.3% 3.1% 3.1% 1.4%
Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
234 Annual Comprehensive Financial Report | June 30, 2022 (This page intentionally left blank)

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive
Financial Report | June 30, 2022 235
Revenue Capacity
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
(in Thousands)
Fiscal Secured Homeowners Net Secured Unsecured Total Assessed Total Direct Year Valuations Exemption Valuations Valuations Valuation Tax Rate 2013 21,368,295$ (136,241)$ 21,232,054$ $ 571 ,614 21 ,803,668$ 0.24% 2014 22,534,203 (134,257) 22,399,946 575,006 22,974,952 0.22% 2015 23,756,525 (131,813) 23,624,712 608,539 24,233,251 0.25% 2016 25,354,224 (130,238) 25,223,986 602,659 25,826,645 0.26% 2017 26,599,121 (128,241) 26,470,880 625,032 27,095,912 0.30% 2018 28,631,957 (126,543) 28,505,414 638,858 29,144,272 0.25% 2019 30,388,233 (124,908) 30,263,325 662,995 30 ,926,320 0.23% 2020 32,158,077 (123,481) 32,034,595 672,205 32 ,706,801 0.25% 2021 34,107,320 (120,266) 33,987,055 676,673 34 ,663,728 0.25% 2022 35,394,651 (118,859) 35,275,793 688,899 35 ,964,692 0.24% NOTE:

Amounts pertaining to the Pa s adena Community Development Commis s ion and the City have been combined.

In 1978 the voters of the Sta te of Ca l i forni a pa s s ed Propos i ti on 13 whi ch l i mi ted property ta xes to a tota l ma xi mum ra te of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation fac tor " (limited to a max imum inc r ease of 2 %). With few ex c eptions, pr oper ty is only r e-assessed at the time tha t it is s old to a new owner. At that point, the new a s s es s ed va lue is reas s es s ed at the purchas e price of the property s old .

The a s s es s ed valua tion da ta s hown above repres ents the only da ta currently a va ila ble with res pect to the a ctual ma rket va lue of taxable property and is subject to the limitations described above.

Source: Sta rti ng wi th FY2021, HdL Coren & Cone.

STATISTICAL SECTION CITY OF PASADENA
236 Annual Comprehensive Financial Report | June 30, 2022 Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of assessed value)
2013 2014 2015 2016 2017
City Direct Rates:

Ci ty ba s ic ra te 0.1970 0.1918 0.2329 0.2290 0.2537 PCDC Succes s or Agenc y 0.0437 0.0282 0.0219 0.0331 0.0479 Total Cit y Di rect Ra te 0.2407 0.2200 0.2548 0.2621 0.3016 Overlapping Rates:

Los Angeles C ount y General 0.4266 0.4483 0.4118 0.4060 0.3647 La Canada Unified School District
Pa s a dena School Dis tri ct 0.4389 0.4379 0.4389 0.4375 0.4386 Pasadena Communit y
Col l ege Di s trict 0.1248 0.1247 0.1254 0.1254 0.1260 Me tropoli ta n Wa ter Dis trict 0.0035 0.0035 0.0035 0.0035 0.0035 Tota l Direct Ra te 1.2345 1.2345 1.2344 1.2345 1.2345 Fiscal Year
NOTE:

FY2021 da ta wa s corrected i n FY2022.

In 1978, Ca l i forni a voters pa s s ed Propos i ti on 13 whi ch s ets the property ta x ra te a t a 1.00% fi xed a mount. Thi s 1.00% i s shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners a re cha rged ta xes a s a percenta ge of a s s es s ed property va lue for the payment of the va rious inter gov er nmental ov er lapping debts.

The La Ca na da Uni fi ed School Di s tri ct El ecti on of 2017 Genera l Obl i ga ti on Bonds , Seri es A, were a uthori zed a t a n elec t ion of t he r egist er ed v ot er s of t he La C anada Unified Sc hool Dist r ic t . The Bonds ar e gener al obligat ions of t he Dis trict pa yable s olely from the proceeds of ad va lorem property ta xes . The tota l a d va lorem ta x ra tes levi ed, a s a percenta ge of a s s es s ed val ua ti on, by a l l ta xi ng enti ti es i n Ta x Rate Area 4774, whi ch i ncl udes Pas a dena Area Communi ty Col l e
ge District.

Source: Sta rti ng wi th FY2021, HdL Coren & Cone a nd Los Angel es County As s es s or 2012/2013 - 2021/2022 Combi ned Ta x

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Fi
nancial Report | June 30, 2022 237
Revenue Capacity
2018 2019 2020 2021 2022

0.2178 0.2208 0.2161 0.2209 0.2201

0.0356 0.0096 0.0301 0.0335 0.0238

0.2534 0.2304 0.2462 0.2544 0.2439

0.4169 0.4396 0.4238 0.4166 0.4267

0.0579 0.0552 0.0562 0.0552

0.4359 0.4363 0.4365 0.4362 0.4370

0.1248 0.1247 0.1245 0.1238 0.1234

0.0035 0.0035 0.0035 0.0035 0.0035

1.2345 1.2924 1.2897 1.2907 1.2897
Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
238 Annual Comprehensive Financial Report | June 30, 2022 Revenue Capacity
Principal Property Taxpayers
Current Year and Ten Years Ago
Percent of Percent of
Total City Total City
Total Taxable Total Taxable
Assessed Assessed Assessed Assessed
Property Owner Valuation Valuation* Valuation Valuation CSCDA Communi ty Improvement Authori ty 443,932,387$ 1.23% -$ 0.00% Kaiser Foundation Health Plan 321,107,460 0.89% 219,785,890 1.01% CPUS Pa s a dena LP 279,973,406 0.78% - 0.00% CVFI S La ke Ave LP 267,026,342 0.74% - 0.00%
BPP Ea s t Uni on LLC 221,054,238 0.61% - 0.00% Ca pref Pa s eo LLC Les s or 195,236,074 0.54% - 0.00% Pa ci fi c Hunti ngton Hotel Corp 186,185,523 0.52% 155,447,726 0.71% PPF Off 100 W Wa l nut St LP 186,797,645 0.52% 170,300,000 0.78% PPF Off 74 N Ps dna Ave 173,593,670 0.48% 149,600,000 0.69% 177 Col ora do Owner LLC 169,765,333 0.47% - 0.00% Western Asset Plaza LLC - 0.00% - 0.00%
P aseo C olor ado Holdings LL C - 0.00% 196,526,525 0.90% Leonard M Marangi Et Al Trust - 0.00% 126,600,422 0.58% Equity Office Properties Trust - 0.00% 122,837,391 0.56% Tishman Spey er Archstone Smith - 0.00% 119,399,303 0.55% SSR Paseo Colorado LLC - 0.00% 112,596,646 0.52%
TC Trio Apa rtment LLC - 0.00% 111,871,000 0.51%
Tota l pri nci pa l property ta xpa yers gros s a s s es s ed va l ue 2,444,672,078$ 6.78% 1,484,964,903$ 6.81% 2022 2013
NOTE:

The amounts shown abov e inc lude assessed v alue dat a for bot h t he C it y and the Redev elo pment A genc y.

Data is onl y pres ented for the to p ten properties in each of the two years pres ented.

Exempt values are not included in Total Cit y Tax able Assessed Valuat ion.

Source: Startin g wi th FY2021, HdL Core n & Cone . .

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive
Financial Report | June 30, 2022 239
Revenue Capacity
Property Tax Levies and Collections (1)
Last Ten Fiscal Years
Fi
scal Taxes Levied Collections in
Year Ended for the Percent Subse quent Percent
June 30 Fiscal Yea r Amount of Lev y Years Amount of Lev y (2) 2013 39 ,044,561 38 ,331,579 99.63% 516 ,462 38 ,331,579 98.17% 2014 41 ,214,435 41 ,488,565 100.67% 626 ,989 41 ,488,565 100.67% 2015 43 ,784,611 53 ,950,721 123.22% * 53,950,721 123.22% 2016 46 ,436,623 (3) 56,653,799 122.63% * 56,653,799 122.63% 2017 48 ,735,223 (3) 66,159,085 134.82% * 66,159,085 134.82% 2018 52 ,461,971 (3) 58,934,277 112.34% 608 ,224 58 ,934,277 112.34% 2019 55 ,562,005 65 ,535,044 117.95% * 65,535,044 117.95% 2020 59 ,511,441 67 ,889,708 114.08% * 67,889,708 114.08% 2021 62 ,968,533 73 ,748,044 117.12% * 73,748,044 117.12% 2022 65 ,066,384 76 ,309,149 117.28% * 76,309,149 117.28% Collected within the
Fiscal Year of Levy Total Collections to Date
NOTE:
(1) Ex c ludes collec tions fr om P olic e Buildin g Gener al Obli gat ion Bond Assessment . (3) Ta xes Levi ed for the Fi s cal Years 2016, 2017 a nd 2018 res ta ted on Fi s ca l Yea r 2019 ta bl e. * C ollection in subse quent year information not available. (2) Thi s percentage may exceed 100% beca us e i nformati on provi ded by Tax As s es s or ma y not clearl y identify the y ear collected.

Sour c e: C ounty of Los Angeles, Depar tment of Auditor -C ontr oller , Infor mation for Rec onc iliation of

STATISTICAL SECTION CITY OF PASADENA
240 Annual Comprehensive Financial Report | June 30, 2022 Taxable Sales by Category
Last Ten Calendar Years
Category 2012 2013 2014 2015
App arel Stor es 184,547$ 196 ,947$ 189 ,018$ 191 ,081$ General Merchandise 241 ,605 232 ,768 225 ,356 221 ,751 Food Stores 110,924 114 ,250 115 ,530 117 ,323
Eatin g and Dr inkin g Pl a ces 434,310 456 ,914 483 ,920 527 ,076 Buildin g Ma teri a l s 112,297 128 ,723 139 ,840 151 ,467 Auto Dealers and Su pp lies 4 5 0,661 471 ,992 519 ,264 567 ,144 Ser v ic e Stations 18 8,688 176 ,911 170 ,434 150 ,270 Other Retail Stor es 6 0 4,517 619 ,370 613 ,975 631 ,771 All Other Outlets 844,631 844,871 882,102 849,801
Total 3,172,180$ 3 ,242,746$ 3 ,339,439$ 3 ,407,684$ Fiscal Year
NOTE:

Sources: HdL Coren & Cone, State Board of Equalization, California Department of Taxes and Fees Adminis tration, State
Due to confidentiality issues, the names of the ten largest rev enue pay ers are not av ailable. The categories presented are intended to prov ide alternativ e information regarding the sources of the City's revenue.

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive
Financial Report | June 30, 2022 241
Revenue Capacity
2016 2017 2018 2019 2020 2021
185,448$ 176 ,900$ 181 ,483$ 171 ,713$ 97 ,596$ 144 ,167$ 217,422 213 ,578 210 ,979 200 ,988 143 ,307 167 ,800
119,790 118 ,456 128 ,230 135 ,374 133 ,677 134 ,884
557,770 579 ,785 598 ,588 626 ,002 423 ,176 588 ,986
153,597 166 ,872 169 ,973 156 ,131 166 ,503 223 ,421
603,205 625 ,531 718 ,865 712 ,315 747 ,540 809 ,366
131,929 144 ,807 161 ,461 155 ,631 94 ,230 139 ,654
627,425 616 ,583 635 ,196 607 ,011 471 ,489 627 ,046
915,955 849,883 918,816 913,612 930,531 1,015,231
3,512,541$ 3,492,395$ 3,723,591$ 3,678,777$ 3,208,049$ 3,850,555$ Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
242 Annual Comprehensive Financial Report | June 30, 2022 Electricity Sold by Type of Customer
Last Ten Fiscal Years
(in Megawatt-Hours)
2013 2014 2015 2016
Type of Customer:

Residential 334 ,179 316,631 324,657 326,023 Commercial and Industrial 776,816 783,878 768,735 755,510 Street Li ghts and Traffic Si gnals 15,683 13,678 13,423 13,384 Wholesales to Other Utilities 1 8 5,361 36,811 30,969 310 Other 574 - - -
Total 1,312,613 1,150,998 1,137,784 1,095,227 139.95 162.46 163.43 173.54
Fiscal Year
NOTE:

Total direct rate per megawatt hour.

Rate represents av erage cost per megawatt hour with respect to total rev enue sales from electricity .

Source: Pasadena Water and Power

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive
Financial Report | June 30, 2022 243
Revenue Capacity
2017 2018 2019 2020 2021 2022
320,280 320,878 325,487 319,437 344,009 333,881 720,678 709,597 686,614 657,633 586,683 626,935 13,368 13,372 13,371 12,273 11,573 11,428 - 20,719 26,868 68,714 32,496 145
- - - - - 1,297
1,054,326 1,064,566 1,052,340 1,058,057 974,761 973,686 178.48 179.07 174.22 173.28 191.00 195.55
Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
244 Annual Comprehensive Financial Report | June 30, 2022 Revenue Capacity
Electricity Rates
Last Ten Fiscal Years
(Average Rate in Dollar per Kilowatt-Hour)
Fiscal
Year Ended Commercial Street Li ghts &
June 30* Residential & Industrial Traffic Signals
2013 0.1613 $ 0.1443$ 0.1313$
2014 0.1612 0.1442 0.1427
2015 0.1784 0.1556 0.1514
2016 0.1827 0.1582 0.1505
2017 0.1826 0.1597 0.1467
2018 0.1927 0.1684 0.1495
2019 0.1940 0.1677 0.1495
2020 0.2092 0.1867 0.1793
2021 0.2106 0.1903 0.1813
2022 0.2100 0.1880 0.1882
* FY 2013 - FY 2022 include Publ i c Benefi t Char ge (P Source: Pasadena Water and Power

CITY OF PASADENA STATISTICAL SECTION

Annual Comprehensive Financial Report | June 30, 2022 245 Revenue Capacity
Electricity Customers
Current Year

Percent of
Electricity Operating Electric
Electricity Customer Charges Revenues
P asadena Hospit al Assoc iat ion 5 , 4 6 9 , 8 4 5$ 2.41% Wa ter Department 2,647,840 1.17% California Institute of Technology 2,592,720 1.14% Street Li ghts 2,378,233 1.05% Pasadena Unified School District 2,189,101 0.97% Pa s a dena Ci ty Coll ege 2,173,750 0.96% Publi c Works 1,609,089 0.71% Kaiser Permanente 1,487,972 0.66% Metropolitan Transit Authority 1,300,726 0.57% Art Center Coll ege of Des i gn 1,243,286 0.55% 23,092,563$ 10.19%
2022

Source: Pasadena Water and Power

STATISTICAL SECTION CITY OF PASADENA
246 Annual Comprehensive Financial Report | June 30, 2022 Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year General Tax
Ended Obli gation Revenue Pension Certificates of Allocation June 30 Bonds Bonds Bonds Participation Bonds
2013 -$ 6,700,000$ 133,905,000$ 85,772,925$ -$ 2014 - 6,180,000 123,890,000 76,589,936 -
2015 - 5,617,649 117,184,671 73,165,019 -
2016 - 5,059,568 117,259,853 73,397,830 -
2017 - 4,501,487 117,335,939 68,275,669 -
2018 - - 117,412,025 62,967,375 -
2019 - - 117,488,112 57,635,920 -
2020 - - 136,738,949 55,477,731 -
2021 - - 134,885,718 53,219,542 -
2022 - - 132,832,487 50,866,353 -
Governmental Activities
NOTE:
*See Statistic al Sec tion - Demogr aphic and Ec onomic Infor mation sc hedule for per sonal inc ome. ***See Sta tis tica l Section - Demogra phic and Economic Informa tion s chedule for population da ta . Per Ca pita cal cul ati on corrected i n FY2022.

Begi nni ng wi th fi s ca l yea r 2019, the Ci ty i mpl emented GASB 88, s o the other compens a ted a bs ences a nd i ns ura nce c laim liab
ilty amount wer e r emov ed fr om the long ter m debt sec tion.

Details regarding the City's outstanding debt can be found in the notes to the financial statements (Note 9). The amount of outstanding debt by type reported above is net of the related premiums and discounts.
**Begi nni ng wi th fi s cal yea r 2015, the Ci ty i mpl emented GASB 68, s o the pens i on l i a bi l ty a mount wa s removed from the lo ng term debt section
.

Begi nni ng wi th fi s ca l yea r 2018, the Ci ty i mpl emented GASB 75, s o the other pos t empl oyment benefi ts l i a bi l ty amount was removed from the long term debt section.

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Financial Re
port | June 30, 2022 247
Debt Capacity
Loans Total
Notes Governmental
Payable Payable Other ** Activities
8,532,705$ 925,642$ 75,837,593$ 311,673,865$
7,542,101 561,673 89,295,467 304,059,177
6,153,430 547,411 67,172,783 269,840,963
4,838,030 6,532,849 69,774,761 276,862,891
3,360,807 6,217,983 87,229,120 286,921,005
1,844,179 5,902,803 59,668,752 247,795,134
832,685 5,587,305 - 181,544,022
6,811,926 5,271,481 - 204,300,087
-
5,876,051 4,955,325 - 198,936,636
-
4,936,710 4,638,830 - 193,274,380
(continued)
Governmental Activities

STATISTICAL SECTION CITY OF PASADENA
248 Annual Comprehensive Financial Report | June 30, 2022 Ratios of Outstanding Debt by Type (continued)
Last Ten Fiscal Years
Fiscal Year Capitalized Total
Ended Revenue Certificates of Lease Notes Business-type June 30 Bonds Partici pation Obli gations Pa yable Other Activities 2013 239,665,000$ 9 ,837,075$ 44,626$ 1,139,066$ 3,346,787$ 254,032,554$ 2014 304 ,245,000 8,125,064 9,096 986,804 (3,040,335) 310,325,629 2015 303,423,927 6,300,977 - 826,805 - 310 ,551,709 2016 289,292,444 4,358,024 - 658,777 - 294 ,309,245 2017 366,890,070 2,291,366 - 482,108 - 369 ,663,544 2018 348,915,418 105,841 - 296,462 - 349 ,317,721 2019 330,295,767 - 3,252,694 101,224 - 333 ,649,685 2020 311,558,207 - 2,824,168 - - 314 ,382,375 2021 306,453,348 - 2,384,123 - - 308 ,837,471 2022 301,282,264 - 1,932,251 - - 303 ,214,515 Business-type Activities
NOTE:
*See Statistic al Sec tion - Demogr aphic and Ec onomic Infor mation sc hedule for per sonal inc ome. ***See Sta tis ti ca l Section - Demographic a nd Economic Information s chedule for popul ation da ta. Per Capita ca l cul a ti on corrected i n FY2022.

Begi nni ng wi th fi s ca l yea r 2019, the Ci ty i mpl emented GASB 88, s o the other compens a ted abs ences and i ns urance c
laim liabilty amount wer e r emov ed fr om the long ter m debt section.

Details rega rdi ng the City's outs ta nding debt can be found in the notes to the fi na ncia l s ta tements (Note 9). The amount of outs ta nding debt by type reported a bove is net of the rela ted premiums and discounts.
**Begi nni ng wi th fi s ca l year 2015, the Ci ty i mpl emented GASB 68, s o the pens i on l i a bi l ty amount wa s removed from the l
on g term debt s ecti on
.

Begi nni ng wi th fi s ca l yea r 2018, the Ci ty i mpl emented GASB 75, s o the other pos t empl oyment benefi ts l i a bi l ty amount was removed from the long term debt section.

CITY OF PASADENA STATISTICAL SECTION

Annual Comprehensive Financial Report | June 30, 2022 249 Debt Capacity

Total Private Purpose Percenta geD ebt
Primary Long-Term of Personal Per
Government Liabilities Income * Ca pita ***
565,706,419$ 51 ,256,905$ 10.86% 4 ,040$ 614,384,806 48 ,552,905 10.34% 4 ,361 580,392,672 7 ,525,000 9.73% 4 ,118 571,172,136 16 ,553,159 9.67% 4 ,050 656,584,549 10 ,483,543 10.44% 4 ,581 597,112,855 3 ,501,092 8.86% 4 ,135 515,193,707 635 ,000 8.24% 3 ,521 518,682,462 435 ,000 8.11% 3 ,581 507,774,107 225 ,000 7.51% 3 ,495 496,488,895 - 6.96% 3 ,590

STATISTICAL SECTION CITY OF PASADENA
250 Annual Comprehensive Financial Report | June 30, 2022 Ratios of General Bonded Debt Outs
tanding
Last Ten Fiscal Years
Fiscal Year General Tax
Ended Obli gation Revenue Pension Certificates of Allocation June 30 Bonds Bonds Bonds Participation Bonds Total
2013 -$ 6 ,700,000$ 133,905,000$ 85,772,925$ -$ 226 ,377,925$ 2014 - 6 ,180,000 123,890,000 76,589,936 - 206 ,659,936 2015 - 5 ,617,649 117,184,671 73,165,019 - 195 ,967,339 2016 - 5 ,059,568 117,259,853 73,397,830 - 195 ,717,251 2017 - 4 ,501,487 117,335,939 68,275,669 - 190 ,113,095 2018 - - 117 ,412,025 62,967,375 - 180 ,379,400 2019 - - 117 ,488,112 57,635,920 - 175 ,124,032 2020 - - 136 ,738,949 55,477,731 - 192 ,216,680 2021 - - 134 ,885,718 53,219,542 - 188 ,105,260 2022 - - 132 ,832,487 50,866,353 - 183 ,698,840 Outstanding General Bonded Debt
NOTE:
**See Statistical Sect ion - Demogr aphic and Economic Infor mat ion sc hedule for population data. P er C apita cal cul ati on corrected i n FY2022.

Details regarding the City's outs ta nding debt ca n be found in the notes to the financial s tatements (Note 9). The amount of outstanding debt by type reported above is net of the related premiums and discounts.

General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds, of which, the City has none.
*See Sta tis tical Section - Revenue Ca pa city - As s es s ed Va lue a nd Es tima ted Actua l Va lue of Taxable Property schedule for assessed values of taxable property.

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive
Financial Report | June 30, 2022 251
Debt Capacity
Percent of
Total City
Restricted Taxable
Net Assets for Net Assessed Per
Debt Service Bonded Debt Valuation* Capita**
31,126,374$ 195,251,551$ 1.04% 1,617$
24,754,798 181,905,138 0.90% 1,467
9,723,366 186,243,973 0.81% 1,321
12,036,110 183,681,141 0.76% 1,302
11,519,460 178,593,635 0.70% 1,246
11,528,304 168,851,096 0.62% 1,169
11,931,653 163,192,379 0.57% 1,115
11,883,151 180,333,529 0.59% 1,245
8,209,125 179,896,135 0.54% 1,238
7,084,563 176,614,277 0.51% 1,277

STATISTICAL SECTION CITY OF PASADENA
252 Annual Comprehensive Financial Report | June 30, 2022 (This page intentionally left blank)

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive
Financial Report | June 30, 2022 253
Debt Capacity
Direct and Overlapping Debt
June 30, 2022
Ci ty Assessed Valuation 30,449,216,093$
Redevelo pment A genc y Inc r emental Valuat ion 5,515,475,407 Total Assessed Valuat ion 35,964,691,500$
Estimated
Share of
Percenta ge Outstandin g Overla pp in g
Applicable
1 Debt a t 6/30/2022 Debt
Direct & Overlapping Debt:

Metropol ita n Wa ter Di s tri ct 2.083% 9,835,780$ 204,914$ Pa s a dena Area Community Col lege Di s tri ct 35.332% 58,665,000 20,727,474 La Cana da Unifi ed School Dis trict 0.209% 72,215,000 150,609 Pa s a dena Uni fi ed School Dis trict 73.763% 329,590,000 243,114,779 Total ov er la pp in g tax and assessment debt 489,431,783$ 264,197,776 Ci ty direct debt 193,274,380
Total direct and overlapping debt 1
457,472,156$
Notes:

Source : HdL Core n & Cone , Los Angeles C ount y As s es s or a nd Audi tor Combi ned 2021/22 Li en Da te Ta x Rol l s

1. For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using values.

Applic able per c entages wer e estimated by deter mining the por tion of another gov er nmental unit's tax able assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.

Overla pping governments a re thos e tha t coincide, a t leas t in pa rt, with the geographic boundaries of the City.

This schedule es tima tes the portion of the outs ta nding debt of thos e overla pping governments that is borne by t he r esident s and businesses of t he C it y . This pr oc ess r ec ognizes t hat , when c onsider ing t he C it y 's abilit y t o issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply tha t every taxpa yer is a res ident, and therefore res pons ible for repaying the debt, of each overlapping government. The City Direct Debt amount does not include business- type activities debt.

STATISTICAL SECTION CITY OF PASADENA
254 Annual Comprehensive Financial Report | June 30, 2022 Legal Debt Margin Information
Last Ten Fiscal Years
(in Thousands)
2013 2014 2015 2016
Assessed v aluat ion 5 7 1,614$ 575 ,006 24,233,251 25,826,921 Conve rs i on percenta ge 25% 25% 25% 25%
Adjust ed assessed v aluation 1 4 2,904 143,752 6,058,313 6,456,730 Debt limit percenta ge 15% 15% 15% 15%
Debt limit 2 1,436 21,563 908,747 968,510 Total net debt applicable to limit: -$ - - - Lega l debt ma rgin 21,436$ 21,563 908,747 968,510 Total debt a pp licable to the limit
as a percenta ge of debt li mit 0.0% 0.0% 0.0% 0.0%
Fiscal Year
NOTE:

Source: Cit y of Pasadena , De pa rtment of Fina nce a nd Los An geles C ount y Tax A ssessor The Gov er nment C ode of the State of C alifor nia pr ov ides for a legal debt limit of 1 5 % of gr oss assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value.

Effecti ve wi th the 1981-82 fi s cal yea r, ea ch pa rcel i s now a s s es s ed at 100% of ma rket val ue (a s of the mos t recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal y ear fr om the cur r ent full v aluation per spec tiv e to the 2 5 % lev el that was in effect at the time t hat t he legal debt mar gin was enac t ed by t he St at e of C alifor nia for loc al gov er nment s loc at ed wit hin t he st at e.

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Fi
nancial Report | June 30, 2022 255
Debt Capacity
2017 2018 2019 2020 2021 2022
27,095,911 29,144,272 30,926,320 32,706,801 34,663,728 35,964,692 25% 25% 25% 25% 25% 25%
6,773,978 7,286,068 7,731,580 8,176,700 8,665,932 8,991,173 15% 15% 15% 15% 15% 15%
1,016,097 1,092,910 1,159,737 1,226,505 1,299,890 1,348,676 - - - - - -$
1,016,097 1,092,910 1,159,737 1,226,505 1,299,890 1,348,676

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
256 Annual Comprehensive Financial Report | June 30, 2022 Pledged-Revenue Coverage
Governmental Activity Debt
Last Ten Fiscal Years
(in Thousands)
Fiscal Year
Ended Property
June 30 Taxes Principal Interest Coverage
2013 44,066 - - -
2014 44,066 - - -
2015 56,446 - - -
2016 59,141 - - -
2017 68,752 - - -
2018 63,484 - - -
2019 68,276 - - -
2020 70,689 - - -
2021 76,579 - - -
2022 79,144 - - -
General Obligation Bonds
Debt Service
NOTE:

Details regarding the City's outstanding debt can be found in the notes to the financial statements. *Up to January 31, 2012, the date of PCDC dissolution, tax increment was reported under Primary Government grouping. **As of February 1, 2012, tax increment is reported under Private Purpose Trust Fund grouping.

Prior to fiscal year 2015, gross amount was reported (before deduction of Pass-through and County Administrative Cost).

Starting in fiscal year 2015, net amount is reported (post deduction of Pass-through and County Administrative Cost).

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive
Financial Report | June 30, 2022 257
Debt Capacity
Tax Tax
Increment Principal Interest Coverage Increment ** Principal Interest Coverage - - - - 9 ,537 13,433 1,187 0.65
- - - - 6 ,486 2,704 725 1.89
- - - - 1 ,925 2,245 409 0.73
- - - - 4 ,965 2,100 284 2.08
- - - - 9 ,327 2,235 234 3.78
- - - - 4 ,586 2,360 177 1.81
- - - - 143 195 35 0.62
- - - - 65 200 26 0.29
- - - - 8 210 16 0.04
- - - - - - - -
Tax Allocation Bonds
Primary Government* Private Purpose Trust Fund**
Debt Service Debt Service

STATISTICAL SECTION CITY OF PASADENA
258 Annual Comprehensive Financial Report | June 30, 2022 Debt Capacity
Pledged-Revenue Coverage
Business-Type Activity Debt
Last Ten Fiscal Years
(in Thousands)
Fiscal Year Light & Less Net
Ended Power Operating Available
June 30 Revenue
1 Expenses
2 Revenue Princi pal Interest Covera ge
2013 193 ,400$ 159,351 34,049 9,060 5,885 227.83% 2014 193 ,701 155,663 38,038 8,695 7,190 239.46%
2015 207 ,745 147,810 59,935 8,950 8,715 339.29%
2016 204 ,224 146,510 57,714 9,340 8,347 326.31%
2017 204 ,287 151,499 52,788 11,290 10,865 238.27% 2018 213 ,873 148,636 65,237 12,000 11,250 280.59% 2019 230 ,980 155,634 75,346 12,475 10,778 324.03% 2020 226 ,285 156,038 70,247 13,005 10,249 302.09% 2021 222 ,862 155,468 67,394 13,930 9,679 285.46% 2022 207 ,563$ 155,040 52,522 7,225 9,147 320.81% Fiscal Year Less Net
Ended Water Operating Available
June 30 Revenue
1 Expenses
2 Revenue Princi pal Interest Covera ge
2013 58 ,839$ 37,699 21,140 2,985 4,188 294.72%
2014 61 ,772 42,615 19,157 3,070 4,045 269.25%
2015 58 ,039 38,810 19,229 3,185 3,915 270.83%
2016 51 ,538 35,501 16,037 3,305 3,782 226.29%
2017 58 ,551 38,589 19,962 4,430 3,634 247.54%
2018 62 ,819 43,801 19,018 3,525 3,456 272.43%
2019 62 ,244 45,322 16,922 3,695 3,287 242.37%
2020 63 ,901 47,447 16,454 2,475 3,114 294.40%
2021 71 ,441 52,287 19,154 2,720 2,858 343.38%
2022 66 ,879$ 49,098 17,781 2,725 2,927 314.60%
Debt Service
3 Water Revenue Bonds
Debt Service
3 Light & Power Revenue Bonds
NOTE:
1 Total oper ating r ev enues inc luding inv estment ear nings 2 Total operating expenses exclusiv e of depreciation
3 Requirements are reported on a cash basis, excluding premiums * Amount restated
Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements. Operating expenses do not include interest or depreciation expenses.

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Fi
nancial Report | June 30, 2022 259
Demographic and Economic Information
Demographic Statistics
Last Ten Calendar Years
Personal Per Capita
Calendar Income Personal Unem ployment
Year Population
(1) (in thousands) Income
(2)
Rate
(3)
2012 140,020 5,448,318 38,911 7.0%
2013 140,879 5,607,829 39,806 5.8%
2014 140,949 5,679,117 40,292 7.4%
2015 141,023 5,738,875 40,694 6.0%
2016 143,333 5,968,550 41,641 4.7%
2017 144,388 6,045,196 41,867 3.7%
2018 146,312 6,251,241 42,725 4.0%
2019 144,842 6,399,297 44,181 3.9%
2020 145,306 6,761,032 46,529 10.4%
2021 138,310 7,130,017 51,550 7.3%
NOTE:

Begi nni ng FY2022, s chedul e upda ted from fi s ca l yea r to ca l enda r yea r.

Source: HdL , Core n & Cone (Source: 2019-2021 )
Avenue Insi ghts & Anal ytics (2018 a nd pri or)
1 California State Department of Finance
2 U.S. Census Bureau , most recent American Communit y Surve y 3 State of C alifor nia Em plo yment Develo pment De par t ment, Bur eau of Labor Statistics De p

STATISTICAL SECTION CITY OF PASADENA
260 Annual Comprehensive Financial Report | June 30, 2022 (This page intentionally left blank)

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Financial Report | June
30, 2022 261
Demographic and Economic Information
Principal Employers
Current Year and Nine Years Ago
Percent of Percent of
Number of Total Number of Total
Employer Employees Em ployment Em ployees Em ployment
California Institute of Technology- Jet
Propulsion Laboratory 6,426 6.09% 4,800 14.27%
K aiser Permanente 5,279 5.00% 4 ,707 13.99%
California Institute of Technolo gy - Cam pus 3 ,761 3.56% 3 ,600 10.70% Huntin gton Memoria l Hos pital 3,400 3.22% 3 ,273 9.73% Pa s a dena Ci ty C olle ge2 ,708 2.57% 1 ,760 5.23%
P asadena Unified Sc hool Dist r ic t 2 ,148 2.03% 3 ,000 8.92% The Cit y of Pasadena 2,238 2.12% 1 ,952 5.80%
Ar t C enter C ollege of Desi gn 825 0.78% 756 2.25%
Ea s t Wes t Ba nk 757 0.72% 342 1.02%
Hathawa y-Syca mores 565 0.54% 665 1.98%
2022 2013
NOTE:

Source: Pasadena Chamber of Commerce and City of Pasadena Business License departmen t

3. While ev ery effort has been made to ensure the accuracy of the material included in this schedule, t he C ity of P asadena r elies at times on t hir d par ty sour c es when compiling data. For FY2022, City of Pa s adena conta cted the top employers and obta ined total em
plo yee count for their business.

1. For City of Pasadena, the number includes seasonal employees. The information was provided by the City of Pasadena Human Resources department.

2. In FY2022, the percentage of total empl oyment i s cal cul a ted us i ng a bas el i ne of 105,575 jobs in Pasadena, data provided by Pasadena Chamber of Commerce.

STATISTICAL SECTION CITY OF PASADENA
262 Annual Comprehensive Financial Report | June 30, 2022 Full-time and Part-time City Employees by Function
Last Ten Fiscal Years
Function 2013 2014 2015 2016 2017
General government 348.50 338.00 365.00 382.00 405.00
P ublic safet y 562.90 540.00 548.00 550.00 563.00
Pub
l i c works 306.60 293.00 315.00 317.00 320.00
Trans porta ti on 45.00 51.00 50.00 51.00 51.00
Hea l th 103.90 124.00 125.00 85.00 80.00
Cul ture a nd l ei s ure 192.20 281.00 94.00 97.00 103.00 Water & power 422.00 355.00 426.00 433.00 443.00
Informa ti on s ervi ces 104.90 140.00 107.00 108.00 108.00 Sea s ona l 288.00 267.00 192.00 265.00 262.00
Total 2,374.00 2 ,389.00 2 ,222.00 2 ,288.00 2 ,335.00
Fiscal Year
Source: Cit y of Pasadena's Bud get Book-FY2022

CITY OF PASADENA STATISTICAL SECTION

Annual Comprehensive Financial Report | June 30, 2022 263 Operating Information

2018 2019 2020 2021 2022
394.00 392.46 466.88 387.22 492.20
561.00 556.75 564.75 564.75 564.75
320.00 319.96 318.96 271.96 267.48

50.00 50.00 50.00 51.00 51.00

84.00 89.10 105.60 98.38 130.00
107.00 104.74 106.77 230.23 153.23
406.00 418.00 417.00 419.00 419.00
105.00 103.56 103.56 99.98 77.00
260.00 242.00 41.00 84.00 83.00
2 ,287.00 2 ,276.57 2 ,174.52 2 ,206.52 2 ,237.66
Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
264 Annual Comprehensive Financial Report | June 30, 2022 Operating Indicators by Function
Last Ten Fiscal Years
2013 2014 2015 2016
Police:

Arres ts 4,906 3,852 3,966 4,210
Transportation:

Pa rking cita tions /wa rni ngs i s s ued* 172,154 168,896 185,832 166,481 Fire:

Number of emergency ca l l s ** 16,570 17,368 18,237 19,488 Ins pecti ons 7,123 7,445 7,500 8,296
Water:

New connections 55 57 31 35
Average dai l y cons umpti on (thous a nds of ga l l ons ) 26,982 28,368 25,436 21,144 Fiscal Year
NOTE:
**FY2015 i ni ti a l l y reported a s 14,349; corrected i n FY2016 to 18,237 Source: City of Pasadena, various departments
* P ar king c itations wer e or iginally r epor ted under P olic e depar tment. This c ategor y mov ed to the Tr anspor tation depa rtment i n FY2010 beca us e a ma jori ty of pa rki ng ti ckets a re i s s ued by the Tra ns porta ti on depa rtment.

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive
Financial Report | June 30, 2022 265
Operating Information
2017 2018 2019 2020 2021 2022
4,078 5,701 6,018 5,444 2,429 3,365
175,430 150,945 129,108 125,715 68,620 97,869
19,458 19,483 19,016 19,223 16,947 18,710
9,251 9,096 8,959 8,253 6,006 2,573
98 100 88 65 63 35
22,535 24,757 23,519 23,083 25,331 24,357
Fiscal Year

STATISTICAL SECTION CITY OF PASADENA
266 Annual Comprehensive Financial Report | June 30, 2022 Capital Asset Statistics by
Function
Last Ten Fiscal Years
2013 2014 2015 2016
Police:

Stations 1 1 1 1
Subs ta tions 5 5 3 3
Fire:

Fire stations 8 8 8 8
Transportation:

Streets (mi l es ) 322 357 357 357
Streetl i ghts 17,207 17,452 17,584 17,597
Tra ffi c s i gna l s 329 329 330 330
P ar king facilities 9 9 9 9
Culture and leisure:

Pa rk s i tes 20 20 20 20
Community centers 4 4 4 4
Li bra ri es 10 10 10 10
Electric Utility:

Power pl a nts 1 1 1 1
Cus tomers 64,931 65,039 65,564 65,318
Mi l es of s ervi ce 673 680 680 687
Maxi mum capaci ty (mega wa tts ) 174 175 174 174
Water:

Wa ter ma i ns (mi l es ) 516 520 520 520
Cus tomers 37,911 37,974 37,972 37,959
Average daily consumption (mgd) 27 28 25 21
Fiscal Year
Source: Cit y of Pasadena , va ri ous depar tments

CITY OF PASADENA STATISTICAL SECTION
Annual Comprehensive Financial Report | June 30, 2022 267 Operating Information
2017 2018 2019 2020 2022
11111
32222
88888
338 338 338 338 347
17,597 17,708 17,731 17,753 17,738
330 330 313 332 352
99999
20 23 24 24 26
44444
10 10 10 10 10
11111
65,979 66,505 66,712 67,103 67,905
687 662 664 665 666
174 174 174 174 175
520 520 520 520 520
38,067 38,046 38,114 38,193 38,364
23 25 24 23 24
Fiscal Year

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INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable City Council
of the City of Pasadena
Pasadena, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Pasadena (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 17, 2023. Our report includes a reference to other auditors who audited the financial statements of the Pasadena Fire and Police Retirement System, the blended component unit of the City, as described in our report on the City’s financial statements. This report does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control. Accordingly, we do not express an opinion on the effectiveness of City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any Attachment B

City Council
City of Pasadena
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
March 17, 2023

PASADENA CENTER OPERATING COMPANY
(A COMPONENT UNIT OF THE

CITY OF PASADENA, CALIFORNIA)

FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Attachment C

PASADENA CENTER OPERATING COMPANY

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 4

BASIC FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 9
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 10 STATEMENT OF CASH FLOWS 11
NOTES TO FINANCIAL STATEMENTS 13
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 30

(1)
INDEPENDENT AUDITORS’ REPORT
Board of Directors
Pasadena Center Operating Company
Pasadena, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Pasadena Center Operating Company (the Company), a component unit of the City of Pasadena, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Company’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Pasadena Center Operating Company, as of June 30, 2022, and the changes in its financial position and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

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

Emphasis of Matter
As discussed in Note 1 to the financial statements, effective July 1, 2021, the Company adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 87, Leases.

The guidance requires lessees to recognize a right-to-use asset and corresponding lease liability and lessors to recognize a lease receivable and corresponding deferred inflow of resources for all leases with lease terms greater than twelve months. Our opinion is not modified with respect to this matter.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer .

CliftonLarsonAllen LLP
CLAconnect.com

Board of Directors
Pasadena Center Operating Company
(2)
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those cha rged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Board of Directors
Pasadena Center Operating Company
(3)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis be presented to supplement the basic financial statements.

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated March 22, 2023, on our consideration of the Company’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Company’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Company’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
March 22, 2023

PASADENA CENTER OPERATING COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
(4)
As the Pasadena Center Operating Company (the PCOC) management, we offer readers of the PCOC’s financial statements, this narrative overview, and an analysis of the financial activities for the year ended June 30, 2022. The PCOC’s financial statements consist of management’s discussion and analysis (MD&A), statement of net position; statement of revenues, expenses, and changes in net position; statement of cash flows; and notes to the basic financial statements. We encourage readers to consider the information presented herein in conjunction with the accompanying basic financial statements and the accompanying notes.

BACKGROUND
The PCOC is a nonprofit 501(c) (4) corporation incorporated in 1973 to manage the Pasadena Convention Center, the Pasadena Civic Auditorium, the Pasadena Convention and Visitors Bureau, and the Pasadena Ice Skating Center. The PCOC was one of the first independent nonprofit organizations in the United States to combine its facility operations and destination marketing efforts.

The PCOC is funded by revenue from its facilities, proceeds from a Tourism Business Improvement District (2.9 percent), a self-imposed hotel assessment, and a 60 percent portion of the Transient Occupancy Tax (12.1 percent). In FY 2017, The City of Pasadena and the PCOC amended their operating agreement establishing a maximum amount of Transient Occupancy Tax revenue to be transferred to the PCOC annually. In FY 2018, the Pasadena Convention and Visitors Bureau converted the Pasadena TBID from the Parking and Business Area Law 1989 (’89 Law) to the Property and Business Improvement District Law of 1994 (’94 Law). The district assessment remained the same (2.89 percent) and was approved for a five-year term through June 30, 2023.

ABOUT OUR BUSINESS
The PCOC operates a world-class state of the art public assembly facilities that generate significant regional economic activity by attracting conventions, tradeshows, entertainment, and other events to Pasadena. Our facilities include a 55,000 square feet Exhibition Hall, 25,000 square feet Ballroom, 18 meeting rooms of varying sizes, the Historic Civic Auditorium that seats 3,000, the Gold Room, and a 17,000 square feet Exhibit Hall. The PCOC also manages a regulation-size skating rink onsite.

The Pasadena Convention and Visitor’s Bureau (PCVB) attracts hundreds of thousands of people to the City annually, enriching the local economy with hotel and retail spending and other direct spending on goods and services.

PCVB promotes economic development, provides marketing support to the City’s art, culture, innovation, and special events, including operating a Visitor Information Center opened year-round.

MANAGEMENT OBJECTIVE AND STRATEGY
The Company’s mission is to promote Pasadena as a meeting and travel destination by attracting conventions, tradeshows, entertainment events, and tourism to its professionally managed facilities and first-class service. The Company’s management operates the business consistent with strategic business principles for success in both the short term and over more extended periods. PCOC focuses on unifying
the management team, dedicated employees, and third-party contractors to achieve its priority and remain competitive in the meeting industry.

PASADENA CENTER OPERATING COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
(5)

OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as the introduction to PCOC’s basic financial statements. The annual financial report comprises three components: management’s discussion and analysis, the financial statements, and the notes to the financial statements.

The Statement of Net Position presents all PCOC’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources as of June 30, 2022. The difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources is reported as net position.

Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of PCOC is improving or deteriorating.

The Statement of Revenues, Expenses, and Changes in Net Position presents information showing PCOC’s net position changes during the most recent fiscal year. All changes in net position are reported when the underlying event giving rise to the change occurs, regardless of the related cash flow timing. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

The Statement of Cash Flows presents information showing cash receipts and cash payments during the fiscal year, a reconciliation of operating income to net cash provided by operating activities, and detail of noncash investing, capital, and financing activities.

SUMMARY OF FINANCIAL PERFORMANCE
In fiscal year 2022, the Pasadena Center experienced a sharp recovery across all of its operating segments, driven primarily from the lift of restrictions on large gatherings at the late stages of 2021.

In the fiscal year 2022, the Company’s cash and cash equivalents increased by $950,000 related to the company’s operation. Capital assets decreased by $2.1 million, mostly from depreciation expense of $4.0 million.

Deferred outflows of resources for PCOC are related to the accumulated decrease in fair value of hedging derivatives and amortization of deferred refunding charge. Deferred outflows of resources decreased $14.4 million from 2021 to 2022, mainly due to the change in the derivatives’ fair value at year-end.

The Company’s current liabilities, including accounts payable, other accrued liabilities, accrued salaries and benefits, deposits increased by $1.1 million compared to the fiscal year 2021. The current portion of long-term debt increased by $253,000.

Deferred inflows of resources for PCOC are related to the deferred refunding charges and an upfront amount received as part of a service concession agreement with Centerplate. Deferred inflows of resources decreased by $515,000 from 2021 to 2022 due to recognizing these revenues due to the passage of time. In the fiscal year 2022, the amortization of capital investments by Centerplate resumed in July 2021.

PASADENA CENTER OPERATING COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
(6)
The net position represents the residual interest in PCOC’s assets, and deferred outflows of resources after all liabilities and deferred inflows of resources are deducted. PCOC’s net position at the end of FY 2022 is a deficit totaling $3,392,046, decreased by $3,632,570 during the year. Net position is reported in three major categories: net investment in capital assets, restricted, and unrestricted. A full explanation is in Note 7 to the basic financial statements.

The portion of net position classified as net investment in capital assets, represents capital assets net of accumulated depreciation/amortization and net of related outstanding liabilities is $2.4 million at year- end. Although PCOC’s net investment in capital assets is net of related liabilities, the resources used to repay the debt must be from other sources; the capital assets cannot be used to liquidate these liabilities.

The restricted net position remained the same at $870 thousand in the fiscal year 2022. $867 thousand of this amount represents funds restricted for public art. 2022 2021
Cash and Cash Equivalents 19,315,503$ 18,365,214$
Receivables and Other Assets 124,510,339 126,635,522
Total Assets 143,825,842 145,000,736
Deferred Outflows of Resources 11,674,693 26,057,346
Current Liabilities 9,136,456 8,040,154
Noncurrent Liabilities 145,388,632 165,159,755
Total Liabilities 154,525,088 173,199,909
Deferred Inflows of Resources 4,367,493 4,882,789
Net Position (Deficit)
Net Investment in Capital Assets 2,432,565 1,302,747
Restricted 870,240 870,240
Unrestricted (6,694,851) (9,197,603)
Net Position (Deficit) (3,392,046)$ (7,024,616)$

RESULTS OF OPERATIONS
Operating Revenues
The fiscal year 2022 operating revenue equaled $8.5 million, representing a 530% increase from the previous fiscal year. Please note: the annual growth rate is dramatically greater than what would be considered a normal operating result due to the equally dramatic decline in revenue during fiscal year 2021.

PASADENA CENTER OPERATING COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
(7)
During the year, revenues for the PCOC were recognized through space rental and all ancillary services (such as food & beverage, parking, etc.). Key revenue drivers were:
• Television production, Conferences, and Conventions
• Pasadena Ice Skating Center skating classes and hockey league games • Parking for short-term leases for nearby projects
Operating Expenses
In the fiscal year 2022, total operating expenses increased to $12.5 million from $8.6 million, an increase of 45.0%. The increase was driven by the return to hosting events including re-staffing for business needs, increase in occupancy related expenses, and resuming contractual obligations that were temporarily suspended in fiscal year 2021. Depreciation expense, primarily for the convention center building, amounted to $4.0 million.

PCVB contracted and direct expenses in the fiscal year 2022 totaled $2.2 million, an increase of 106.6% compared to $1.1 million in 2021. The increase in PCVB spending is a direct effort to refocus on maximizing the return of the tourism, meeting and conventions industry.

Nonoperating Revenues (Expenses), Net
Non-operating revenues, mainly, Transient Occupancy Tax and Tourism Business Improvement Tax revenue, totaled $12.9 million; an increase of 133.2% mostly as a result of the significant decline in the prior year. Interest income also decreased by $145,000 or 55.6% compared to the fiscal year 2021.

Capital Contributions
Capital contributions include $76,055, which is recognized as revenue from the $1.6 million contribution paid by Boston Culinary Group, now Centerplate. The remainder of the $193,519 unamortized amount paid by Centerplate will be recognized in equal monthly installments over the life of the agreement with PCOC.
2022 2021
Operating Revenues 8,494,453$ 1,347,177$
Operating Expenses 12,518,091 8,594,402
Operating Loss (4,023,638) (7,247,225)
Nonoperating Revenues and Expenses, Net 7,580,153 (246,131) Income Before Capital Contributions 3,556,515 (7,493,356) Capital Contributions 76,055 12,676
Change in Net Position 3,632,570 (7,480,680)
Net Position (Deficit), Beginning of Year (7,024,616) 456,064 Net Position (Deficit), End of Year (3,392,046)$ (7,024,616)$

PASADENA CENTER OPERATING COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
(8)

CAPITAL ASSETS
PCOC’s investment in capital assets as of June 30, 2022, and 2021, amounts to $121,573,130 and $125,521,118, respectively (net of accumulated depreciation/amortization). This investment in capital assets includes building and improvements, machinery and equipment, furniture and fixtures, right-to- use lease assets, land, and construction in progress. The net decrease in PCOC’s investment in capital assets, net of depreciation, for the current fiscal year was $3.9 million. Additional information on PCOC’s capital assets can be found in Note 5 of the financial statements.

June 30, 2022 June 30, 2021
Buildings and Improvements 118,307,556$ 122,081,486$ Machinery and Equipment 683,623 747,998
Furniture and Fixtures 53,246 66,371
Right-to-Use Leased Assets 54,403 81,274
Land 2,423,473 2,423,473
Construction in Progress 50,829 120,516
Total 121,573,130$ 125,521,118$

DEBT ADMINISTRATION
As of June 30, 2022, PCOC had long-term debt outstanding balance is $140,527,175, a decrease of $5.3 million from 2021 due to current year principal payments. There were no major debt events during the current fiscal year. For additional information on PCOC’s long-term debt activity, refer to Note 6 of the financial statements’ notes.

June 30, 2022 June 30, 2021
COP 2006 Series A Capital Appreciation Bonds 5,578,439$ 10,556,151$ COP 2008 Series A Capital Appreciation Bonds 134,720,000 134,720,000 Energy Conservation Loan 175,197 480,759
Leases Payable 53,539 81,274
Total 140,527,175$ 145,838,184$

REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of PCOC’s finances. Questions concerning any of the information provided in this report or request for additional financial information should be addressed to the Director of Finance, Pasadena Center Operating Company, 300 E. Green Street, Pasadena, California 91101.

PASADENA CENTER OPERATING COMPANY

STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(9)
ASSETS

CURRENT ASSETS
Cash and Cash Equivalents 10,572,001$
Accounts Receivables 943,736
Lease Receivable 7,495
Due from the City of Pasadena 1,869,378
Prepaid Items 116,600
Total Current Assets 13,509,210
RESTRICTED CASH AND CASH EQUIVALENTS 8,743,502

NONCURRENT ASSETS
Capital Assets, Not Depreciated or Amortized 2,474,302
Capital Assets, Being Depreciated or Amortized 119,098,828 Total Noncurrent Assets 121,573,130
Total Assets 143,825,842

DEFERRED OUTFLOWS OF RESOURCES
Accumulated Decrease in Fair Value of Hedging Derivatives 10,763,362 Deferred Charges on Refunding 911,331
Total Deferred Outflows of Resources 11,674,693

LIABILITIES

CURRENT LIABILITIES
Accounts Payable and Other Liabilities 765,219
Accrued Salaries and Benefits 357,887
Interest Payable 565,433
Advance Deposits Payable 1,399,386
Long-Term Liabilities - Due Within One Yea r 6,048,531
Total Current Liabilities 9,136,456

NONCURRENT LIABILITIES
Derivative Instruments Liabilit y 10,763,362
Accrued Salaries and Benefits 146,626
Long-Term Liabilities - Due in More than One Year 134,478,644 Total Noncurrent Liabilities 145,388,632
Total Liabilities 154,525,088

DEFERRED INFLOWS OF RESOURCES
Leases 7,488
Deferred Charges on Refunding 4,166,486
Service Concession Arrangement 193,519
Total Deferred Inflows of Resources 4,367,493

NET POSITION
Net Investment in Capital Assets 2,432,565
Restricted for Public Art 867,377
Restricted for Organ Repairs and Maintenance Project 2,863 Unrestricted (6,694,851)
Total Net Position (3,392,046)$

PASADENA CENTER OPERATING COMPANY

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(10)

OPERATING REVENUES
Occupancy Fees 3,255,890$
Ice Skating Center 2,797,351
Parking 1,232,355
Commissions 1,208,857
Total Operating Revenues 8,494,453

OPERATING EXPENSES
Pasadena Center 4,999,675
Ice Skating Center 1,311,835
Pasadena Convention and Visitors Bureau 2,231,027
Depreciation and Amortization Expense 3,975,554
Total Operating Expenses 12,518,091
OPERATING LOSS (4,023,638)

NONOPERATING REVENUES (EXPENSES)
Contributions from City of Pasadena (Transient Occupancy Taxes) 9,750,623 Tourism Business Improvement District Taxes 3,189,250
Grant Income 2,552,274
Facility Restoration Fee 65,872
Investment Income (Loss) (2,486,935)
Interest Expense and Fiscal Agent Fees (5,490,931)
Total Nonoperating Revenues (Expenses) 7,580,153
INCOME BEFORE CAPITAL CONTRIBUTIONS 3,556,515
CAPITAL CONTRIBUTIONS 76,055
CHANGES IN NET POSITION 3,632,570
Net Position - Beginning of Year (7,024,616)
NET POSITION - END OF YEAR (3,392,046)$

PASADENA CENTER OPERATING COMPANY

STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(11)

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 7,997,567$
Cash Payments to Suppliers for Goods and Services (4,276,326) Cash Payments to Employees for Services (3,677,783)
Net Cash Provided by Operating Activities 43,458

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Receipt of Grants 2,552,274
Contributions from the City of Pasadena (Transient Occupancy Taxes) 9,026,618 Receipt of Tourism Business Improvement District Taxes 3,011,627 Net Cash Provided by Noncapital Financing Activities 14,590,519

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and Construction of Capital Assets (135,581) Principal Paid on Long-Term Liabilities (5,823,297)
Interest Paid on Long-Term Liabilities (4,856,010)
Facility Restoration Fee for Capital Improvements 65,872 Net Cash Used by Capital and Related Financing Activities (10,749,016)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income Received (331,861)
Change in Fair Value of Cash Equivalents (2,602,811)
Net Cash Used by Investing Activities (2,934,672)
NET INCREASE IN CASH AND CASH EQUIVALENTS 950,289
Cash and Cash Equivalents - Beginning of Year 18,365,214 CASH AND CASH EQUIVALENTS - END OF YEAR 19,315,503$

RECONCILIATION TO STATEMENT OF NET POSITION
Cash and Cash Equivalents 10,572,001$
Restricted Cash and Cash Equivalents 8,743,502
Total Reconciliation to Statement of Net Position 19,315,503$

PASADENA CENTER OPERATING COMPANY

STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(12)

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:

Operating Loss (4,023,638)$
Adjustments to Reconcile Operating Loss to Net Cash
Provided by Operating Activities:

Depreciation and Amortization 3,975,554
Amortization of Deferred Inflows Related to Lease (14,977) Loss on Disposal of Capital Assets 108,017
(Increase) Decrease in Assets:

Accounts Receivable (818,302)
Lease Receivable 14,970
Prepaid Items (13,099)
Increase (Decrease) in Liabilities:

Accounts Payable and Other Liabilities 469,707
Accrued Salaries and Benefits 23,803
Advance Deposits Payable 321,423
Net Cash Provided by Operating Activities 43,458$

SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING

AND FINANCING ACTIVITY
Amortization of Deferred Refunding Charges 369,169$
Accretion of Interest on Long-Term Debt 512,288$
Amortization of Service Concession Arrangement 76,055$

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(13)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
Pasadena Center Operating Company (the Company) was formed in 1973 as a nonprofit corporation under Section 501(c)(4) of the Internal Revenue Code for the purpose of managing and operating the Pasadena Center and the Pasadena Convention and Visitors Bureau. The Pasadena Center is comprised of the Civic Auditorium, which includes the auditorium and adjacent land, and the Conference Center, which includes the Conference Center, Exhibition Hall, and related parking facilities.

The Company operates under an agreement with the City of Pasadena (the City) whereby the Company maintains and operates the Pasadena Center and the Pasadena Convention and Visitors Bureau. The Pasadena City Council appoints the members of the Company’s board of directors. The Company’s operations constitute part of the overall financial reporting entity of the City and are accounted for as a discretely presented component unit in the City’s Annual Comprehensive Financial Report consistent with accounting principles generally accepted in the United States of America (U.S. GAAP).

Basis of Presentation
The Company’s financial statements are presented in conformance with Governmental Accounting Standards Board (GASB) Statement No. 34, which established standards for external financial reporting for all state and local governmental entities. The basic financial statements include the statement of net position, statement of revenues, expenses, and changes in net position, and statement of cash flows.

Basis of Accounting
The Company is accounted for as an enterprise fund (proprietary fund type). A fund is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The activities of enterprise funds closely resemble those of ongoing businesses in which the purpose is to conserve and add to basic resources while meeting operating expenses from current revenues. Enterprise funds account for operations that provide services on a continuous basis and are substantially financed by revenues derived from user charges. The Company utilizes the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized as they are incurred.

Classification of Revenues and Expenses
The Company classifies its revenues and expenses into the following classifications:
operating revenues, operating expenses, nonoperating revenues, and nonoperating expenses.

Operating revenues consist of charges to customers for sales and use of the facilities, with the relating costs considered operating expenses. Nonoperating revenues consist of contributions from the City of Pasadena of their transient occupancy taxes, tourism business improvement district taxes, investment income, and other nonoperating income. Capital contributions consist of contributed capital assets.

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(14)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Implementation of New Accounting Pronouncement
In June 2017, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 87, Leases. This standard requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and as inflows of resources or outflows of resources recognized based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this standard, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. The City adopted the requirements of the guidance effective July 1, 2021 and has applied the provisions of this standard to the beginning of the period of adoption.

Cash and Cash Equivalents
For the purpose of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates and have an original maturity date of three months or less.

Investments
Investments are reported in the accompanying statements at fair value, except for certain certificates of deposit and investment contracts that are reported at cost because they are not transferable, and they have terms that are not affected by changes in market interest rates. Investment earnings (loss) includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments.

Prepaid Assets
Certain payments to vendors, which reflect costs applicable to future accounting periods are recorded as prepaid assets.

Leases
The Company is a lessee for noncancellable leases of equipment. The Company recognizes a lease liability and an intangible right-to-use asset (lease asset) in the statement of net position. At the commencement of a lease, the Company initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date. Subsequently, the lease asset is amortized on a straight-line basis over its useful life. The Company monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(15)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Leases (Continued)
The Company is a lessor for a noncancellable lease of office space in a building. The Company recognizes a lease receivable and a deferred inflow of resources in the statement of net position. At the commencement of a lease, the Company initially measures the lease receivable at the present value of payments expected to be received during the lease term.

Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. The Company monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

Capital Assets
Capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated assets are valued at their estimated acquisition value on the date received. The Company capitalizes all assets with a historical cost of at least $10,000 consistent with City practice. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized.

Depreciation is computed utilizing the straight-line method over the following estimated useful lives:

Buildings 50 Years
Building Improvements 3 to 30 Years
Machinery and Equipment 3 to 30 Years
Furniture and Fixtures 10 Years
Right-to-Use Leased Equipment 2 to 5 Years
Compensated Absences
The Company has a paid time off (PTO) policy in effect. It is the Company’s policy to permit employees to accumulate earned but unused PTO benefits. PTO hours can accrue up to a maximum of one and one-half times the annual allowable amount (maximum of 27 to 42 days, 216 to 336 hours). The Company pays all earned PTO benefits upon termination. All accumulated PTO is recorded as an expense and a liability at the time the benefit is earned.

This is included in accrued salaries and benefits on the statements of net position.

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(16)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Net Position
Net position represents the difference between assets and liabilities on the statement of net position. Net positions were classified in the following categories: net investment in capital assets, restricted, and unrestricted.

Net investment in capital assets consists of the cost of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets, as applicable.

Net position is reported as restricted when there are limitations imposed on the use either through the enabling legislation adopted by the Company’s board of directors, or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. All other net position is reported as unrestricted.

When both restricted and unrestricted resources are available for use, it is the Company’s policy to use unrestricted resources first, and then restricted resources as they are needed.

Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(17)
NOTE 2 CASH AND INVESTMENTS
Summary of Cash and Investments
Cash and investments as of June 30, 2022, are classified in the accompanying financial statements as follows:

Cash and Cash Equivalents 10,572,001$
Restricted Cash and Cash Equivalents 8,743,502
Total Cash and Investments 19,315,503$
Cash and investments as of June 30, 2022, consist of the following:

Cash on Hand 15,305$
Deposits With Financial Institutions 5,829,380
City of Pasadena Investment Pool 4,727,316
Cash and Investments With Fiscal Agent:

Money Market Mutual Funds 8,743,502
Total Cash and Investments 19,315,503$
Deposits
At June 30, 2022, the carrying amount of the Company’s deposits was $5,829,380 and the bank balance was $6,409,001. The $579,621 difference represents outstanding checks and other reconciling items. All of the Company’s cash and cash equivalents as of June 30, 2022 were collateralized or insured with securities held by pledging financial institutions in the Company’s name.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code does not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the Company’s deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(18)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code The table below identifies the investment types that are authorized for the Company by the California Government Code. Other than what is in the Government Code, the Company has no other investment policy.

Investment Types Authorized by *Maximum *Maximum
Authorized by the Investment *Maximum Percentage Investment in California Government Code Policy Maturity of Portfolio One Issuer Local Agency Bonds Yes 5 Years None None
U.S. Treasury Obligations Yes 5 Years None None
U.S. Agency Securities Yes 5 Years None None
Bankers’ Acceptances Yes 180 Days 40% 30%
Commercial Paper Yes 270 Days 15% 10%
Negotiable Certificates of Deposit Yes 5 Years 30% None Repurchase Agreements Yes 1 Year None None
Reverse Repurchase Agreements Yes 92 Days 20% None
Medium-Term Notes Yes 5 Years 30% 5%
Mutual Funds Yes N/A 20% 10%
Money Market Mutual Funds Yes N/A 20% 10%
Mortgage Pass-Through Securities Yes 5 Years 20% None
County Pooled Investment Funds Yes N/A None None
Local Agency Investment Fund Yes N/A None None
Joint Power Agency Pools
(Other Investment Pools) Yes N/A None None
* Based on state law requirements or investment policy requirements, whichever is more restrictive.

Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Company’s investment policy. The table below identifies the investment types that are authorized for investments held by the bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.

Maximum Minimum
Authorized Investment Type Maturity Rating
U.S. Treasury Obligations None N/A
U.S. Agency Securities None N/A
State and Local Agency Bonds None Aa
Bankers’ Acceptances 360 days Aa
Commercial Paper 270 days Aa
Negotiable Certificates of Deposit None Aa
Repurchase Agreements None Aa
Money Market Mutual Funds N/A Aaa
Investments Contracts None Aa

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(19)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Company manages its exposure to interest rate risk is by purchasing a combination of short- term and long-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the Company’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the Company’s investments by maturity:
12 Months 12 to 60
Investment Type Fair Value or Less Months
City of Pasadena Investment Pool 4,727,316$ 4,727,316$ -$ Fiscal Agent:

Money Market Mutual Funds 8,743,502 8,743,502 -
Total 13,470,818$ 13,470,818$ -$
Remaining Maturity
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the Company’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.

Minimum
Legal
Investment Type Fair Value Rating Aaa Not Rated
City of Pasadena Investment Pool 4,727,316$ N/A -$ 4,727,316$ Fiscal Agent:

Money Market Mutual Funds 8,743,502 Aaa 8,743,502 - Total 13,470,818$ 8,743,502$ 4,727,316$
Ratings at End of Year
Concentration of Credit Risk
The investment policy of the Company contains no limitations on the amount that can be invested in anyone issuer beyond that stipulated by the California Government Code.

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(20)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value Hierarchy
The Company categorizes its fair value measurements within the fair value hierarchy established by U.S. GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are quoted prices for similar assets in active markets; Level 3 inputs are significant unobservable inputs.

The Company’s investments in the City investment pool and the fiscal agent money market mutual funds are not subject to the fair value hierarchy. Further details on the City’s investment pool fair value hierarchy can be found in the City’s Annual Comprehensive Financial Report for the year ended June 30, 2022.

NOTE 3 TOURISM BUSINESS IMPROVEMENT DISTRICT TAXES AND CONTRIBUTIONS OF

CITY TRANSIENT OCCUPANCY TAXES
Tourism Business Improvement District (TBID) Taxes
The TBID was established in March 2003. The TBID is an assessment levied against each hotel and motel business in the City. The assessment is calculated as a percentage of each day’s Gross Occupancy Revenue and is passed through to guests. The rate of assessment is set annually by resolution of the City Council but cannot exceed 2.89%. For the fiscal year ended June 30, 2022, the rate was set at 2.89%. The purpose of the TBID is to market Pasadena as a destination by funding activities, programs, expenses, and services of the Pasadena Convention & Visitors Bureau. Marketing activities of the Pasadena Convention & Visitors Bureau and the Pasadena Conference Center are financed by the TBID. For the year ended June 30, 2022, TBID taxes were $3,189,250, of which $380,198 was due from the City at June 30, 2022.

Contributions of City Transient Occupancy Taxes (TOT)
The Company receives support from the City equal to the sum of the annual debt service payments on the 2006A and 2008A expansion project bonds and an allowance of $500,000 to be used by the Company for maintenance, repairs, capital improvements and or debt service. A portion of this support is retained by the City to pay for the Company’s insurance.

Annual capital improvements to the Convention Center, Civic Auditorium and Ice Skating Center are approved by the City. For the year ended June 30, 2022, net TOT revenue was $9,750,623, of which $1,465,941 was due from the City at June 30, 2022.

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(21)
NOTE 4 LEASE RECEIVABLE
The Company leases office space under a three-year, noncancellable, lease agreement.

The net present value of the lease receivable was determined using an estimated discount rate of 0.218%. The lessee is required to make monthly fixed payments of $1,250. The Company recognized lease revenue of $14,977 during the current fiscal year. Future minimum lease payments to be received are as follows:

Principal Interest Total
Year Ending June 30, Payment Payment Payments
2023 7,495$ 5$ 7,500$
NOTE 5 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2022, is as follows:

June 30, 2021 Transfers Balance at
as Restated (1) Additions and Deletions June 30, 2022
Capital Assets, Not Depreciated
or Amortized:

Land 2,423,473$ -$ -$ 2,423,473$
Construction in Progress 120,516 135,581 (205,268) 50,829 Total Capital Assets, Not Depreciated
or Amortized: 2,543,989 135,581 (205,268) 2,474,302 Capital Assets Being Depreciated/Amortized
Buildings and Improvements 184,227,898 97,253 184,325,151 Machinery and Equipment 1,881,441 - - 1,881,441
Furniture and Fixtures 366,934 - - 366,934
Right-to-Use Leased Equipment 81,274 - - 81,274
Total Capital Assets Being
Depreciated/Amortized 186,557,547 97,253 - 186,654,800 Less Accumulated Depreciation/
Amortization:

Buildings and Improvements (62,146,412) (3,871,183) - (66,017,595) Machinery and Equipment (1,133,443) (64,375) - (1,197,818) Furniture and Fixtures (300,563) (13,125) - (313,688) Right-to-Use Leased Equipment - (26,871) - (26,871)
Total Accumulated Depreciation/
Amortization (63,580,418) (3,975,554) - (67,555,972) Total Capital Assets Being Depreciated/
Amortized, Net 122,977,129 (3,878,301) - 119,098,828 Total Capital Assets, Net 125,521,118$ (3,742,720)$ (205,268)$ 121,573,130$ (1) The beginning balance was restated to add right-to-use lease assets due to the implementation of GASB Statement No. 87, Leases. See Note 1.

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(22)
NOTE 6 LONG-TERM DEBT
Long-term debt for the year ended June 30, 2022, is as follows:

Balance at Principal
June 30, 2021 Additions/ Payments/ Balance at Due in
as Restated (1) Accretion Prepayments June 30, 2022 One Year Certificates of Participation
2006 Series A 11,340,000$ -$ (5,490,000)$ 5,850,000$ 5,850,000$ Accreted Interest (783,849) 512,288 - (271,561) - Certificates of Participation
2008 Series A 134,720,000 - - 134,720,000 - Energy Conservation Loan 480,759 - (305,562) 175,197 175,197 Leases Payable 81,274 - (27,735) 53,539 23,334
Total 145,838,184$ 512,288$ (5,823,297)$ 140,527,175$ 6,048,531$ (1) The beginning balance was restated to add leases payable due to the implementation of GASB Statement No. 87, Leases. See Note 1.
2006 Certificates of Participation
On August 23, 2006, the City issued the 2006 Certificates of Participation, 2006 Series A and B in the amount of $162,639,972. The Certificates of Participation were issued to finance the cost of improvements to the Pasadena Conference Center and related facilities, establish a reserve fund per the Trust Agreement, and finance the cost of execution and delivery of the Certificates of Participation.
2006 Series A of the Certificates of Participation were issued as Capital Appreciation Certificates. These certificates of participation appreciate in value based on annual accretion of the initial amount at a rate of interest that will result in each such capital appreciation certificate of participation appreciating to its maturity value on its final maturity date.

Accretion will commence on August 23, 2006. Interest accretes at a yield ranging from

3.85% to 4.81%. By their nature, there are no regular interest payments associated with capital appreciation certificates of participation; interest on the debt results from the difference between the amounts paid by the investors when the debt was issued and the significantly larger value at maturity. Each year, the outstanding balance is increased by the accreted value associated with the certificates of participation. Principal on the 2006 Series A Certificates of Participation is payable in annual installments ranging from $415,000 to $5,850,000 commencing February 2010 and ending February 2023. 2006 Series B of the Certificates of Participation was refunded by the 2008 Series A Certificates of Participation (see note below).

The annual requirements to repay the outstanding Certificates of Participation 2006 Series A at June 30, 2022, are as follows:

Principal
Year Ending June 30, Payment Accretion
2023 5,850,000$ (271,561)$

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(23)
NOTE 6 LONG-TERM DEBT (CONTINUED)
2008 Certificates of Participation
On April 15, 2008, the City issued the 2008 Refunding Certificates of Participation, 2008 Series A in the amount of $134,720,000. These certificates of participation were issued to refund the City’s Certificates of Participation (Conference Center Project), 2006 Series B Certificates of Participation and finance the costs of execution of the 2008 Series A Certificates of Participation. The refunded certificates of participation were repaid in April 2008 and the liability has been removed from the statement of net position. Interest on 2008 Series A Certificates of Participation were issued at a variable rate with the reassignment of the synthetic fixed rate swap of 3.536%. Principal is payable in annual installments ranging from $6,775,000 to $11,445,000 commencing February 1, 2024, and ending February 1, 2035.

The annual requirements to repay the outstanding Certificates of Participation 2008 Series A at June 30, 2022, are as follows:

Principal Interest Hedging
Year Ending June 30, Payment Payment Derivative, Net Total 2023 -$ 1,077,760$ 3,625,120$ 4,702,880$
2024 6,775,000 1,055,177 3,547,885 11,378,062
2025 7,480,000 998,627 3,354,557 11,833,184
2026 8,260,000 936,187 3,141,263 12,337,450
2027 9,045,000 867,490 2,906,822 12,819,312
2028-2032 59,265,000 3,061,370 10,186,990 72,513,360 2033-2035 43,895,000 532,764 1,363,712 45,791,476 Total 134,720,000$ 8,529,375$ 28,126,349$ 171,375,724$ The above table incorporates the net receipts/payments of the hedging derivative instrument associated with this debt issue. These amounts assume that current interest rates on variable rate bonds and the current reference rates of hedging derivative instruments will remain the same for their term. As these rates vary, interest payments on variable-rate bonds and net receipts/payments on the hedging derivative instruments will vary. Refer to Note 7 for additional information regarding the derivative instruments associated with the debt of the Company.

Energy Conservation Loan
The Company received approval from the City in June 2008 to commence a project designed to conserve energy through use of more efficient air conditioning systems and energy efficient lighting. The project budget cost was $4,581,071; $1,560,000 was pledged by Pasadena Water and Power (PWP) as a rebate based on energy savings and $3,000,000 was covered by a loan from the California Energy Commission with an interest rate of 3.95% for 13 years. The annual requirements to repay the outstanding loan from the State of California Energy Conservation Commission at June 30, 2022, are as follows:

Principal Interest Total Debt
Year Ending June 30, Payment Payment Service
2023 175,197$ 3,822$ 179,019$

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(24)
NOTE 6 LONG-TERM DEBT (CONTINUED)
Leases Payable
The Company leases equipment for terms of 24 to 60 months under four noncancelable lease agreements. The net present values of the leases payable were determined using estimated discount rates that range from 0.185% to 0.577%. One agreement requires fixed quarterly payments of $1,117 and the other three agreements require fixed monthly payments of $341, $628, and $990. Total future minimum lease payments under lease agreements are as follows:

Principal Interest Total
Year Ending June 30, Payment Payment Payments
2023 23,334$ 172$ 23,506$
2024 21,437 89 21,526
2025 4,686 36 4,722
2026 4,082 13 4,095
Total 53,539$ 310$ 53,849$
NOTE 7 DERIVATIVE INSTRUMENT LIABILITY
The Company has entered into a floating to fixed interest rate swap in order to hedge the change in cash flows with respect to certain variable debt as described below. This structure results in a lower borrowing cost by accessing interest rate markets more attractive than traditional fixed rate debt structures of the time. The greater liquidity and flexibility of the swap market has offered the Company significant cost savings opportunities in the swap the Company has engaged in.

Conference Center Variable Rate Demand Refunding Certificates of Participation (COP)
On September 18, 2006, the Company 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 Company’s variable interest rate to a synthetic fixed rate of 3.536%. Under the terms of the swap, the Company pays the counterparty the fixed rate of 3.536% and receives a floating 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
Notional Effective Maturity Counterparty
Type Objective Amount Date Date Terms Credit Rating
Pay Fixed Interest Hedge of Changes 133,000,000$ 4/1/2011 2/1/2034 Pay 3.536% A1/AA- Rate Swap in Cash Flows on Receives 64%
the 2008A COPs LIBOR Index

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(25)
NOTE 7 DERIVATIVE INSTRUMENT LIABILITY (CONTINUED)
Objective and Terms (Continued)
In 2011, due to its declining credit ratings, DEPFA Bank was replaced by RBC as the counterparty for the swap. Pursuant to GASB Statement No. 64, the replacement did not require any change in accounting treatment.

On April 15, 2008, the Company issued the 2008 Refunding COPs, Series 2008A in the amount of $134,720,000. These certificates were issued to refund the Company’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 approximately $800,000. The refunded certificates are considered to be defeased, and the liability has been removed from the Company’s statement of net position and recorded as a deferred amount upon refunding. During the fiscal year ended June 30, 2011, the Company 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 interest method for the life of the swap with adjustments to interest expense during each fiscal year.

The original balance of the borrowing was $8,935,613. As of the year ended June 30, 2022, the balance was $4,166,486.

The deferred amount is amortized over the life of the swap using the effective interest method for the life of the swap with adjustments to interest expense during each fiscal year as follows:

Beginning Accrued Ending
Year 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) -
Total 918,126$ (5,084,612)$
The Company categorizes its fair value measurements within the fair value hierarchy established by U.S. GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the asset or liability. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are quoted prices in active markets for similar assets; Level 3 inputs are significant unobservable inputs.

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(26)
NOTE 7 DERIVATIVE INSTRUMENT LIABILITY (CONTINUED)
Objective and Terms (Continued)
The Company has the following recurring fair value measurements as of June 30, 2022:

Measurements by Fair Value Level Total Level 1 Level 2 Level 3 Derivative Instrument Liability 10,763,362$ -$ 10,763,362$ -$ 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:

Classification Amount Classification Amount Notional
Cash Flow Hedge:

Pay-Fixed Interest Rate Deferred
Swaps Outflow (14,305,093)$ Liability 10,763,362$ 133,000,000$ Changes in Fair Value Fair Value at June 30, 2022
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
The Company is exposed to credit risk on hedging derivative instruments to the extent the value of the swap is positive from the Company’s perspective. The aggregate fair value of hedging derivative instruments was negative as of June 30, 2022, and therefore the Company 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 the Company.

Basis Risk
The Company is exposed to basis risk on its pay-fixed interest rate swap because the variable-rate payments received by the Company on these hedging derivative instruments are based on a rate or index other than interest rates the Company pays on its hedged variable-rate debt, which is typically remarketed every seven days. As of June 30, 2022, the weighted-average interest rate on the Company’s hedged variable-rate debt is 0.69900%, while the variable rate payments received are 64% of LIBOR, or 0.6739%.

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(27)
NOTE 7 DERIVATIVE INSTRUMENT LIABILITY (CONTINUED)
Termination Risk
The Company 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 termination events such as failure to pay and bankruptcy. In addition, the Company may optionally terminate the agreement on any date. If at the time of a termination, the Company may be required to make a termination payment to its counterparty. If the Company had to terminate the Swap for any reason on June 30, 2022, the maximum exposure/loss would have been $15,484,274.

Rollover Risk
The Company 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, the Company will be re-exposed to the risks being hedged by the hedging derivative instrument.

NOTE 8 NET POSITION
Net position at June 30, 2022, consisted of the following:

Net Investment in Capital Assets:

Property, Plant, and Equipment, Net 121,573,130$
Less: Net Carrying Value of
Capital-Related Debt (116,455,092)
Less: Net Deferred Charges on Refunding (2,685,473)
Total Net Investment in Capital Assets 2,432,565
Restricted Net Position:

Public Art 867,377
Organ Repair and Maintenance 2,863
Total Restricted Net Position 870,240
Unrestricted Net Position (6,694,851)
Total Net Position (3,392,046)$
Net position restrictions are as follows:

Public Art – The $1.2 million capital public art project was originally appropriated for the development of onsite public art. The funds, less monies spent on artist selection, were reallocated for permanent public art in the Civic Center area through the 2013 Public Art Master Plan, which also established the Civic Center Public Art Advisory Group comprised of arts and historic preservation professionals.

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(28)
NOTE 8 NET POSITION (CONTINUED)
Organ Repair and Maintenance – This is the remaining balance of a $15,000 grant which was received for the repair and maintenance of the Moller organ located in the Pasadena Civic Auditorium.

NOTE 9 SERVICE CONCESSION ARRANGEMENTS
Centerplate
In the fiscal year ended June 30, 2009, the Company entered into an agreement with Boston Culinary Group, which then changed to Distinctive Gourmet Services, but is now called Centerplate (CP), that allows CP the exclusive right to operate the food services concession for the Company. The agreement covered the period March 1, 2009, through June 30, 2014. In exchange for this exclusive right, CP agreed to contribute up to $1,000,000 for capital asset purchases at the new kitchen in the Conference Center Expansion Project. An amendment to the agreement was made and entered into on January 6, 2012 to extend the term of the agreement for five years, expiring on June 30, 2021 with an additional five-year extension that is eligible, contingent upon mutual agreement between CP and the Company.

With the amended agreement, CP was additionally granted the exclusive right to operate a Starbucks Café at the Pasadena Center in the space formerly leased by Lovebirds Café & Bakery. CP’s ability to operate the Starbucks Café runs concurrently with the initial agreement entered into on March 1, 2009 and covers the period through June 30, 2021. A second amendment to the agreement was entered into on June 28, 2019 to extend the agreement an additional five years expiring on June 30, 2024.

Prior to July 1, 2019, CP provided $975,000 for Kitchen space and $399,960 for Café space.

As of June 30, 2022, CP has contributed a total of $1,580,184. This has been recorded as advances on contracts and is being amortized over the lease period including extensions.

The sum of $1,386,665 has been recognized as capital contributions to date. The remaining $193,519 is recorded as a deferred inflow of resources.

NOTE 10 DEFINED CONTRIBUTION RETIREMENT PLAN
Plan Description
Eligible employees of the Company participate in the Pasadena Center Operating Company 401(k) Profit Sharing Plan (the Plan), which is a defined contribution retirement plan covering all employees except those whose employment is governed by a collective bargaining agreement. To be eligible to participate in the Plan, an employee must be age 21 and have completed 90 consecutive days of employment. To be eligible for the employer’s match, an employee must be age 21 and have completed one full year of employment and must have 1,000 hours of service in a twelve-month period.

PASADENA CENTER OPERATING COMPANY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(29)
NOTE 10 DEFINED CONTRIBUTION RETIREMENT PLAN (CONTINUED) Funding Policy
An employee may either defer an amount of their salary on a pre-tax basis, or contribute after tax dollars to a Roth 401k account up to the maximums allowed by federal law. The Company will make a contribution equal to 5% of eligible employees’ pay regardless of whether an employee contributes to the Plan. Employee contributions are vested immediately. Employer match contributions prior to July 1, 2004, are subject to vesting on a graduating basis, beginning at two years and becoming fully vested after five years of service. Employer match contributions after July 1, 2004, are vested immediately. The Company matched $245,280 for the fiscal year ended June 30, 2022.

NOTE 11 RELATED PARTY TRANSACTIONS
During the current year, the Company incurred charges for the use of the City’s building maintenance, electricians, plumbers, locksmiths, printing, and mailing services and insurance. Nonevent expenses totaled $1,370,804 and event expenses totaled $91,014, for a grand total of $1,461,817. The expenses are included within general and administrative expenses. At June 30, 2022, there were no amounts payable to the City.

In addition to the revenues and receivables described in Note 3, the Company has $23,239 due from the City related to interest earned on cash and investments pooled with the City at June 30, 2022.

NOTE 12 RISK MANAGEMENT
The Company is entitled to indemnity from the City; however, the Company purchases a Special Liability Insurance Program (SLIP) for general liability and employment practice coverage. The City manages the Company’s claims and tenders to the insurance carrier third-party administrator. The Company carries statutory workers’ compensation insurance with no retention. The company requires licensees to provide insurance or purchase Special Events Liability Insurance from the Company. The City buys liability insurance on the parking structures at the Convention Center. The Company buys separate liability insurance on the ice rink. There are lawsuits pending that are being defended by an insurance company without a reservation of rights. During the past three fiscal years, no settlements or judgements exceeded insurance coverage.

(30)
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH

Board of Directors
Pasadena Center Operating Company
Pasadena, California

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Pasadena Center Operating Company (the Company), a component unit of the City of Pasadena, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Company’s basic financial statements, and have issued our report thereon dated March 22, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Company’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the Company’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Company’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer .

CliftonLarsonAllen LLP
CLAconnect.com

Board of Directors
Pasadena Center Operating Company
(31)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Company’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
March 22, 2023

ROSE BOWL OPERATING COMPANY
(A COMPONENT UNIT OF THE

CITY OF PASADENA, CALIFORNIA)

BASIC FINANCIAL STATEMENTS
WITH INDEPENDENT AUDITORS’ REPORT
YEAR ENDED JUNE 30, 2022
Attachment D

ROSE BOWL OPERATING COMPANY
(A COMPONENT UNIT OF THE CITY OF PASADENA, CALIFORNIA)

BASIC FINANCIAL STATEMENTS

JUNE 30, 2022

TABLE OF CONTENTS

FINANCIAL SECTION
Independent Auditors’ Report 1
Management’s Discussion and Analysis 4

BASIC FINANCIAL STATEMENTS
Statement of Net Position 22
Statement of Revenues, Expenses, and Changes in Net Position 23 Statement of Cash Flows 24
Notes to the Basic Financial Statements 25

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of Net Pension Liability 45 Schedule of Plan Contributions 47

OTHER REPORT
Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards 49

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEPENDENT AUDITORS’ REPORT
Board of Directors
Rose Bowl Operating Company
Pasadena, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of each enterprise fund of the Rose Bowl Operating Company (the Company), a component unit of the City of Pasadena, California, which comprise the statement of net position as of June 30, 2022, and the related statements of revenues, expenses and changes in net position, and the statement of cash flows for the year then ended, and the related notes to the financial statements, which collectively comprise the Company’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each enterprise fund of the Rose Bowl Operating Company, as of June 30, 2022, and the respective changes in financial position and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

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

Emphasis of Matter
Change in Accounting Principle

As discussed in Note 1 to the financial statements, effective July 1, 2021, the Company adopted Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our opinions are not modified with respect to this matter.

Board of Directors
Rose Bowl Operating Company
(2)
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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

In performing an audit in accordance with GAAS and Governmental Auditing Standards, we:

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

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Board of Directors
Rose Bowl Operating Company
(3)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of proportionate share of net pension liability and schedule of pension plan contributions, be presented to supplement the basic financial statements.

Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated January 12, 2023, on our consideration of the Company’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Company’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Company’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
January 12, 2023

4 Rounding adjusted

ROSE BOWL OPERATING COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022

TABLE OF CONTENTS
I. OVERVIEW OF THE FINANCIAL STATEMENTS
II. EXECUTIVE SUMMARY
III. FINANCI AL STATEMENTS
IV.

FINANCI

AL ANALYSIS
a. Statistical and Net Event Income Comparison
b. Net Event and Operations Income Comparison
c. Expense Comparison
d. Other Non-Operating Revenue
e.

Balance Sheet Highlights
The objec
tive of management’s discussion and analysis is to help readers of the Rose Bowl Operating Company’s (“RBOC”) financial statements better understand the financial position and operating activities for the fiscal year ended June 30, 2022 (FY 2022), with selected comparative information with the year ended June 30, 2021. This discussion should be read in conjunction with the financial statements. Unless otherwise indicated, years (2021, 2022) in this discussion refer to the fiscal year ended June 30.

I. OVERVIEW OF THE FINANC IAL STATEMENTS
This discussion and analysis serves as an introduction to the RBOC’s basic financial statements. The RBOC’s financial statements consist of two components: 1) fund financial statements and 2) notes to the financial statements.

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

The statement of revenues, expenses, and changes in net position presents information showing how the RBOC’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.

The statement of cash flows presents information on the cash inflows and outflows of cash during the fiscal year, directly attributing cash flows to types of sources and uses and reconciling those cash flows to the changes in net position for the fiscal year.

The basic financial statements can be found on pages 22-24 of this report.

NOTES TO THE BASIC FINANCIAL STATEMENTS
The notes provide additional information that is essential to a full understanding of the data provided in the financial statements. The notes to the financial statements can be found on pages 25-44 of this report.

5 Rounding adjusted

II. EXECUTIVE SUMMARY (STADIUM AND GOLF COURSE)

In FY 2022, Stadium and Golf Course key areas impacting events, operations and net income are highlighted below:

 The RBOC successfully transitions back into the operation of displacement events after a one- year hiatus due to the COVID-19 pandemic, while also contributing towards FY 2022 debt service.

 Legacy Connections continues both successful donors fundraising efforts and focusing on State and Federal grants that resulted in over $10 million in funds for the RBOC.

 Music Festival agreement renewal and renegotiation with AEG resulting in a new 5-year partnership that guarantees the RBOC $3 m illion annually with the potential for additional revenue based on the success of the festival business.

 Flea market net event income reaches a 10-ye ar high based on new marketing efforts and a new 5-year agreement with the operator.

 Enterprise events continue to grow and outper forming net event income expectations, while the campus resumes displacement events.

 Golf operations continued generating strong revenues with the 2 nd highest revenues in the past
five years due to increases in rates, while ro unds decreased due to increased major events which reduced playable days.

 As full operations resume, the stadium and golf complex experience challenges to restaff during the labor market shortages. Increases in overhead salaries and benefits were due to having fewer open positions the prior year; with 33 full-time employees on a budget of 37 in FY 2022.

Event personnel are experiencing labor shortages with increases in rates for security, janitorial, public safety, rentals, and event productions (plumbing, electrical, etc.) due to the post COVID- 19 labor market.

 Significant decreases in investments revenues ar e due to fair market valuations and based on an allocation of the RBOC’s funds invested with the City of Pasadena.

 Increased Non-Operating revenues from the Legacy Connections transfer, grants, while the City of Pasadena contribution toward debt service declined from FY 2021 to FY 2022.

6 Rounding adjusted
III. FINANCIAL STATEMENTS

7 Rounding adjusted
FINANCIAL STATEMENTS (Continued)

8 Rounding adjusted
IV. FINANCIAL ANALYSIS
a. Statistical and Fiscal Trends
During FY 2022 the Rose Bowl stadium hosted 14 disp lacement event and 12 flea market events with a combined attendance of 638,914, as well as 132 enterprise events including: runs/walks, food truck events, parties, graduations, and filming. The Flea Market set a record annual attendance of 209,616 during FY 2022. Football is starting to experience increase s in per game attendance, while Americafest (City of Pasadena event) saw a slight decrease in attendance.

9 Rounding adjusted
Stadium / Golf Complex Net Event Income Comparison:

Stadium and Golf Net Event incom
e for FY 2022 was $14.6 million, close to th e FY 2020 pre-COVID net event income. Highlights include - Football shows signs of rebounding with UCLA net event income at a 4-year high of $4.7 million and Rose Bo wl Game net event income matching a 5-year high of $5 million.

The new Music Festival contract was effective November 2021 impacting the 5 events with an average net event income of approximately $276,000 (per event) with potential increased revenues at the conclusion of contracted year one based on the RBOC percentage share.

Enterprise events net income during FY 2022 was approximately $1.9 million $57,000 less than the record set during FY 2021. A key driver included the increased Golf Complex and Rose Bowl enterprise events, such as Craftoberfest. The average per enterprise event net income is approximately $14,500 slightly less than the FY 2021 amount of $17,800. The Flea Market operated for 12 months with an annual net event income of $1.5 million increasing the per event net income to $131,000, or $37,000 higher than the 4 prior year averages – due to increased attendance and contracted RBOC share for the last 3 months of the year.

10 Rounding adjusted
Golf Complex Key Statistics:

As interest in the sport of golf continues the Broo kside Golf Complex works to find a balance between demand, course availability (given the resumed displacement events), pricing, and reinvestments in course health and renovation. Below are key statistics utilized to manage the golf course financial performance:
 The number of rounds continue to be strong at 158,599 with only 327 playable days generating a gross course revenue of $6.8 million, near the 5-year high in FY 2021.  A rounds per day average of 485 is 2nd only to FY 2021, which had no displacement events.  The average revenues per round was $43.13, a 5-year high.

Net Complex Income (made up of the below operating
units) totals a 5-Year high of $2.5 million for FY2022; with key drivers from Golf Course, Displacement / Parking, and Golf Enterprise Events.

11 Rounding adjusted
FINANCIAL ANALYSIS (Continued)
b. Revenue/Expense, Net Event and Operations Income comparison (Stadium and Golf Complex)
Below are two sets of comparisons: a year-to-ye ar comparison of Revenues/Expenses (Chart) and a 5- year comparison of key drivers of Net Event and Operations Income:

Revenues, Expenses, Debt Service (Net), and Preventative Maintenance Fiscal Years 2021 and 2022:

12 Rounding adjusted
Combined Net Event and Operations Income Comparison 5-Years:

Operating analysis excluding Depreciation and Nonoperating Revenues Stadium
Key change
s to Net Event and Operations Income were mainly due to the stadium resuming displacement events with fans. The Net Income from stadium operations is $2.4 million after the Rose Bowl assuming $2.5 million of the $11.8 million net debt service, with the City of Pa sadena paying $9.3M after the $2.7 million federal subsidies.

The FY 2022 Net Event Income is $14.3 million, ov erhead expenses of $9.4 million and debt service of $2.5 million resulted with a Stadium Net Event and Operations income of $2.4 million.

13 Rounding adjusted
Golf Complex

Golf Complex Net Operating Income has a 5-year high of $2.5 million, with key drivers of direct golf course Income, restaurant, parking/displacement, and a new record set by golf enterprise events.

14 Rounding adjusted

FINANCIAL ANALYSIS (Continued)
c. Expense Comparison

The RBOC has 5 key areas of operating Expenses: Stadium Overhead, Event Expenses, Debt Service, Golf Complex Overhead and Golf Course Direct expens es. Many of these expenses have experienced increases due to changes in market demands driving co sts higher than the Consumer Price Index (CPI).

Key areas of increases included staffing due to s hortages and market costs of retaining industry experienced staff, professional and contracted services in areas such as information technology, business development and legal services. Other areas experiencing material increases included utilities and insurance rates.

Stadium Overhead Expenses:

Stadium total overhead expenditures have maintained the FY 20 20 spend rate of $9.1 - $9.2 million with growth of 5.8% since 2018 - based on CPI, contract renegotiations to market rates, and increased demands of events on the RBOC staff.

Salaries and Benefits have a growth rate of 7% due to market rate adjustments, promotions, and open full- time positions. Since 2018 salaries increased $614,000 mainly due to CPI growth of $542,000, 2 new Full- time employees in Legacy and Event support, promotions, and market rate adjustments. There were (4) fully or partially open budgeted FTE positions during of FY 2022 with a savings to budget of $173,000.

Benefits increased by $500,000 since FY 2018 with a growth rate of 13.3% due to cost of healthcare, vision, dental, and CalPERS.

The General and Administrative (G&A) expense growth rate of 10% is due to increases in market contracted rates, growing costs of business development and opportunity planning, as well as increased professional services in information technology and operating changes. The top three spend categories that comprises 74% of the $5.2 million total stadium overhead expenses are utilities, professional, and contracted services.

G&A expenses were lower than the trend in FY 2018 due to several intiaives were put on hold while staff focused on 5 displacement events occuring during the last 2 months of FY 2018.

Since FY 2018 utilities have increased by approximately $200,000 at growth rate of 3.6% with an annual spend of $1.5 million. Combined professional services and contracted services have grown at a rate of

14.3% with the most significant growth during FY 2022 of approximately $700,000 in professional services occurring after COVID-19. The increase is mainly due to higher security, legal costs/settlements, revenue opportunity study, increased efforts in business/staff development and training, information technology and supporting consulting in areas of concessions, and contract negotiations.

Other significant areas of increases included insurance allocation from the City of Pasadena with a growth rate of 35% from a low $96,000 in FY 2019 to $375,000 in FY 2022. Other overhead expenditure categories totaling $1 million have remained stable: Premium Seating sales/contract maintenance, operating leases, other administrative banking fees, permits, and supplies as outlined below.

15 Rounding adjusted

16 Rounding adjusted
FINANCIAL ANALYSIS (Continued)

Event Expenses:

The Rose Bowl Stadium experienced some changes to events operations which impacted event expenses.

Event mix changes in FY 2022 have mitigated the incr eased expenses to reduce the per event average cost. Events, such as concerts, require increased security, public safety, and turf replacements; while Music Festivals and soccer matches generally have lower production costs, reducing event expenses. Key cost drivers continue to be security, public safety , event production costs, parking/neighborhood traffic management and janitorial services. The average expense per displacement event has been reduced by $269,000 since the 2019 high, which had 5-concerts. Enterprise and Flea Market per event costs and cost recovery increased based on market rates.

17 Rounding adjusted
FINANCIAL ANALYSIS (Continued)
d. Other Non-Operating Revenue:

Total Other Non-Operating revenues of $24.4 million encompasses both recurring and non- recurring sources. Recurring sources include Lega cy Connections, federal government subs idies on debt service, cell site rental and utilities cost recovery contracted to FY 2025.

Non-Recurring sources include $10.0 million by Legacy Connections efforts to secure the Shuttered Venue Operators Grant. The City of Pasadena net debt service contribution was $9.3 million.

18 Rounding adjusted
FINANCIAL ANALYSIS (Continued)
e. Balance Sheet Highlights:

On a full a ccrual basis, the Net Position increased by $2.234 million, as outlined by the Statement of Revenue and Expenses (Income Statement) and below Statement of Net Position (Balance Sheet).

Key areas of changes in Assets include cash, accounts receivables, net assets:

Unrestricted cash balances at ye ar end increased by $16.2 million; changes since FY 2021 were mainly due to the Shuttered Venue Operator Grant (SVOG) which reimbursed the RB OC for $10 million of operating expenditures during COVID-19. An additional $3.1 million is due to the increased events associated deposits and non-events cash receipts in FY 2022. Golf operations cash increased by $3.1 million due to an increase in liabilities intercompany d ue American Golf Corp of $1.6 million. The change in cash was also due to golf cash draw-down of $1.5 million to operations du ring FY 2021, which did not reoccur during FY 2022.

Accounts Receivables increased by $3.8 million due to Stadium $3.8 million and Non-Event of $33,000.

Stadium accounts receiv ables increased by $2.8 milli on mainly due to Music Festival events during May and June 2022 and billing for deposits at year end. Non-Event increased accounts receivable were due to Capital related $300,000 from Legacy and non-event collection of $47,000 at June 2022.

The Golf Complex Accounts receivables show $625,000 increase in Due from Stadium – mainly in relation to expenditures carried out by the Golf Complex associated events (such as the music festival) occurring on the golf course. Other non-event expenses and $33,000 due from Levy Concessionaire for capital fund and in transit golf credit card receipts.

19 Rounding adjusted
Balance Sheet highlights (Continued)
Change in Capital reflect assets decreased by $10.9 million mainly due to $12.4 million in depreciation offset by changes to cons truction in progress and new assets of $1.5 million. Assets placed in service included phase 1 of future capital opportunity studi es, walk through metal detector replacements, Levy related projects (East Wine Garden, storage/stands upgrades) - and on Golf complex patio improvements, pump house repairs and complex assessment studies.

There has been a change in capital / depreciati on methodology in FY 2022, due to the FY 2021 audit recommendations. The new methodology no longer capitalizes depreciable assets with a useful life of a year or less but recognizes expenses as preventative maintenance on the income statement.

Financials reflect a new accounting standard (GASB 87) which requires balance sheet recognition of leased assets with material over 1 year contract terms.

20 Rounding adjusted
Balance Sheet highlights (Continued)

CHANGE IN DEBT
Outstanding debt decreased by $3.0 million during FY 2022 mainly due to principal payments on the 2016 and 2018 Bonds ($3.8 million), one year of the 2016 bond premium amortization ($550,201), one year of the 2018 bond premium amortization ($178,323) net of accreted interest amortization of $1.6 million.

Financials reflect a new accounting standard (GASB87) which requires balance sheet recognition of lease liability recognition for assets with material over 1 year contract terms. (i) Accreted Interest is a discount rate on bonds amo rtized over the life of the 2010 bond.

21 Rounding adjusted

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the RBOC’s finances. Questions concerning any of the information provided in this re port, or requests for additional financial information, should be addressed to the Office of the Controller, Rose Bowl Operating Company, 1001 Rose Bowl Dr., Pasadena, California 91103.

ROSE BOWL OPERATING COMPANY

STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(22)
Rose Bowl Golf Course Total
Assets:

Current:

Cash and investments 20,155,549$ 15,956,749$ 36,112,298$ Accounts receivable, net of allowance of
$353,141 for the Rose Bowl 5,612,763 348,589 5,961,352
Lease receivable 225,789 - 225,789
Inventory 519 122,378 122,897
Prepaid expenses 344,913 2,660 347,573
Total Current Assets 26,339,533 16,430,376 42,769,909 Noncurrent:

Due from other funds - 625,497 625,497
Due from City of Pasadena 438,830 - 438,830
Cash and investments, restricted 11,188,835 - 11,188,835 Lease receivable 479,042 - 479,042
Capital Assets:

Construction in progress - 970 970
Depreciable capital assets 149,320,201 6,130,782 155,450,983 Total Noncurrent Assets 161,426,908 6,757,249 168,184,157 Total Assets 187,766,441 23,187,625 210,954,066
Deferred Outflows of Resources:

Deferred refunding charge 1,776,732 - 1,776,732
Deferred outflows related to net pension liability 847,666 40,593 888,259 Total Deferred Outflows of Resources 2,624,398 40,593 2,664,991 Liabilities:

Current:

Accounts payable and accrued expenses 3,871,311 2,132,652 6,003,963 Accrued salaries and benefits 570,005 70,583 640,588
Accrued interest payable 3,110,530 - 3,110,530
Due to other funds 625,497 - 625,497
Due to City of Pasadena 1,182,341 350,313 1,532,654
Deposits 377,285 - 377,285
Unearned revenues 4,232,612 65,707 4,298,319
Current portion of long-term advance 100,000 - 100,000
Current portion of long-term liabilities 4,610,414 60,490 4,670,904 Total Current Liabilities 18,679,995 2,679,745 21,359,740 Noncurrent:

Long-term advance 500,000 - 500,000
Long-term liabilities, net of current portion 199,052,866 518,813 199,571,679 Net pension liability 1, 326,523 63,525 1,390,048
Total Noncurrent Liabilities 200,879,389 582,338 201,461,727 Total Liabilities 219,559,384 3,262,083 222,821,467 Deferred Inflows of Resources:

Deferred inflows related to leases 694,573 - 694,573 Deferred inflows related to net pension liability 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 capital assets (21,564,150) 5,562,297 (16,001,853) Restricted for debt service 11,188,835 - 11,188,835
Unrestricted (20,645,788) 14,348,384 (6,297,404) Total Net Position (31,021,103)$ 19,910,681$ (11,110,422)$

ROSE BOWL OPERATING COMPANY

STATEMENT OF REVENUES, EXPENSES,

AND CHANGES IN NET POSITION
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(23)

Rose Bowl Golf Course Total
Operating Revenues:

Green fees and other golf revenues -$ 6,830,452$ 6,830,452$ Parking revenue - 765,084 765,084 Advertising revenue 3,303,689 - 3,303,689 Facility rentals and parking revenues 16,211,805 415,350 16,627,155 Concessions 2,493,772 - 2,493,772 Pro shop - 127,246 127,246 Restaurant - 379,412 379,412 Admission tax 376,772 - 376,772 Cost recoveries 7,839,603 107,341 7,946,944 Total Operating Revenues 30,225,641 8,624,885 38,850,526 Operating Expenses:

Salaries and benefits 4,107,243 88,319 4,195,562 General and administrative 5,160,941 664,309 5,825,250 Depreciation 11,658,581 795,821 12,454,402 Capital preventative maintenance 1,150,867 212,353 1,363,220 Events and parking 15,444,444 378,425 15,822,869 Salaries and benefits - events 466,199 27,356 493,555 Green fee and other golf expenses - 4,622,862 4,622,862 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):

Investment income (loss) (3,840,769) (156,341) (3,997,110) Interest expense (12,275,424) - (12,275,424) Contribution from the City of Pasadena 9,258,005 - 9,258,005 Grant revenues 10,000,000 - 10,000,000 Other nonoperating 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 Beginning of Year (31,528,326) 18,184,010 (13,344,316) End of Year (31,021,103)$ 19,910,681$ (11,110,422)$

ROSE BOWL OPERATING COMPANY

STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(24)
Rose Bowl Golf Course Total
Cash Flows from Operating Activities:

Cash received from customers 16,724,014$ 7,875,102$ 24,599,116$ Cash payments to employees for services (4,309,865) (268,434) (4,578,299) Cash payments to suppliers for goods and services (19,030,014) (4,421,487) (23,451,501) Unrealized loss on investments (4,033,068) (185,971) (4,219,039) Other cash receipts 11,520,064 107,341 11,627,405 Net Cash Provided (Used) by Operating Activities 871,131 3,106,551 3,977,682 Cash Flows from Non-Capital Financing Activities:

Non-capital contributions 21,645,258 47,572 21,692,830 Net Cash Provided by Non-Capital Financing Activities 21,645,258 47,572 21,692,830 Cash Flows from Capital and Related Financing Activities:

Acquisition of capital assets (1,515,381) (16,304) (1,531,685) Payment on advance (100,000) - (100,000)
Federal interest subsidy on bonds payable 2,740,792 - 2,740,792 Principal payments on long-term debt (3,866,877) (51,769) (3,918,646) Interest payments on long-term debt (11,069,865) - (11,069,865) Net Cash Used by Capital and Related Financing Activities (13,811,331) (68,073) (13,879,404) Cash Flows from Investing Activities:

Interest received 192,299 29,630 221,929 Net Cash Provided by Investing Activities 192,299 29,630 221,929 Net Increase (Decrease) in Cash and Cash Equivalents 8,897,357 3,115,680 12,013,037 Cash and Cash Equivalents at Beginning of Year 22,447,027 12,841,069 35,288,096 Cash and Cash Equivalents at End of Year 31,344,384$ 15,956,749$ 47,301,133$ Reconciliation of Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:

Operating income (loss) (7,762,634)$ 1,835,440$ (5,927,194)$ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation 11,658,581 795,821 12,454,402
Unrealized loss on investments (4,033,068) (185,971) (4,219,039) Change i
n allowance for doubtful accounts 28,743 - 28,743 (Increase) decrease in accounts receivables (3,221,077) (33,030) (3,254,107) (Increase) decrease in lease receivable 224,266 - 224,266 (Increase) decrease in inventory 342 (108,536) (108,194) (Increase) decrease in prepaid expenses (252,804) 5,142 (247,662) (Increase) decrease in due from other funds - (625,497) (625,497) (Increase) decrease in due from City of Pasadena 16,495 - 16,495 (Increase) decrease in deferred outflows related to pension liability 68,812 (16,344) 52,468 Increase (decrease) in accounts payable and accrued expenses 2,053,499 1,209,543 3,263,042 Increase (decrease) in accrued salaries and benefits (20,408) 30,171 9,763 Increase (decrease) in due to other funds 625,497 - 625,497 Increase (decrease) in due to City of Pasadena 737,160 350,313 1,087,473 Increase (decrease) in deposits payable (626,377) - (626,377) Increase (decrease) in accrued compensated absences (72) (2,886) (2,958) Increase (decrease) in net pension liability (1,388,116) (218,603) (1,606,719) Increase (decrease) in deferred revenue 1,859,654 16,085 1,875,739 Increase (decrease) in deferred inflows related to leases (234,524) - (234,524) Increase (decrease) in deferred inflows related to pension liability 1,137,162 54,903 1,192,065 Net Cash Provided (Used) by Operating Activities 871,131$ 3,106,551$ 3,977,682$ Non-Cash Capital and Related Financing Activities:

Purchase of capital assets through lease financing 29,922$ -$ 29,922$ Accretion of interest on bonds payable 1,583,125$ -$ 1,583,125$ Amortization of deferred charge and bond discounts/premiums (347,797)$ -$ (347,797)$

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(25)
I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Organization and Summary of Significant Accounting Policies a. Basis of Presentation
The Rose Bowl Operating Company (the Company) was incorporated on January 18, 1994, as a legally separate enti ty with the primary purpose of returning economic and civic value to the City of Pa sadena, California, (the City) by managing a world class stadium and a professional quality golf course complex, Brookside Municipal Golf Course (the Golf Course), in a residential open-space environment. A fourteen- member Board of Directors governs the Company. The Board of Directors consists of the City Manager, two members from the City Mayor’s office, seven members appointed by the City, one member from the Pasadena Tour nament of Roses Association (a sepa rate not-for-profit entity unrelated either to th e City or the Company), one member from the University of California, Los Angeles (UCL A), one member from the joint City Council, and one non-voting member f rom the Pas adena Center Operating Company. These operations constitute part of the overall financial reporting entity of the City and are accounted for as a discretely presented component unit in the City’s Annual Comprehensive Financial Report consist ent with accounting principles generall y accepted in the United States of Amer ica. Revenues and expenses of the Company include direct revenues and expenses and certain allocations from the City. b. Basis of Accounting
The Company is accounted for as an enterprise fund (proprietary fund type). A fund is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The activities of enterprise funds closely resemble those of ongoing businesses in which the purpos e is to conserve and add to basic resources while meeting operating expenses from current revenues. Enterprise funds account for operations that provide services on a continuous basis and ar e substantially financed by re venues derived from user charges. The Company utilizes the accrual basis of accounting. Revenues are recognized w hen earned and expenses are recognized as they are incurred. c. Classification of Revenues
Operating revenues consist of charges to customers for sales and use of the facilities.

Nonoperating rev enues consist of investment earnings and other nonoperating income. Capital contributions consist of contributed capital as sets. d. Capital Assets
Capital assets are recorded at cost and are depreciated over the estimated usef ul life of the asset using the straight-line method of depreciation. The Company capitalizes all assets with a historical cost of at least $10,000 consistent with City practice. The cost of normal maintenance and reports that do not add value to the assets or materially extend asset lives are not capitalized.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(26)
Note 1: Organization and Summary of Si gnificant Accounting Policies (Continued) d. Capital Assets (Continued )
The estimated useful lives of the assets are as follows:

Building and improvements 1 - 55 years
Improvements other than building 1 - 95 years
Machinery and equipment 1 - 93 years
e. Cash Equivalents
For the purposes of the statement of cash flows, investments are defined as short-term , highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insi gnificant risk of changes in value because of changes in interest rates, and have an original maturity date of three months or less. f.

Investments
Invest
ments are reported in the accompanying statements at fair value. Changes in fa ir value that occur during the fiscal year are recognized as investment earnings reported for that fiscal year.

Investment earnings includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. g. Co mpensated Absences
Only full-time employees accrue vacation. Vacation time is accrued two to four week s per year, depending on how long an employee has been with the Company. The Company also grants employees personal paid time o ff. Regular full-time and part-time (24 hours per week minimum) employees are eligible to accrue personal time off wi th pay. Full-time employees may accrue up to 20 personal days per calendar year. Part- time employees who work 24 hours per week or more are eligible to accrue personal paid time off on a pro rata basis. It is the Company’s policy to permit employees to accumulate earned but unused vacation benefits from year to year up to a maximu m of two times a f ull-time employee’s annual vacation amount. Personal paid time off is not accumulated from year to year. All accumula ted compensated absences are recorded as an expense and a liability at the time the benefit is earned. h. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financ ial position reports a separate section for deferred outflows of resources. This sepa rate financial statement element, deferred outflows of reso urces, represents a consumption of net posit ion that applies to a future period(s) and so will not be recognized as an outflow of resour ces (expense/ expenditure) until then. The Compan y has two items that qualify for repo rting in this category:

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(27)

Note 1: Organization and Summary of Si gnificant Accounting Policies (Continued)

h. Deferred Outflows/Inflows of Resources (Continued)

1. The deferred outflows relating to the net pension liability reported in the statement of net position. These outflows are the results of contributions made after the measurement period, which re duces the net pension liab ility in the following year; differences between expected and actual experience, changes in proportion and differences between employer contributions, and proportionate share of contributions, which are amortized to pension expense over a closed period equal to the average of the expected remaining service lives of all employees that are provide pension benefits through the plan; and, the net differences between projected and actual earnings on plan investments are amortized over five years.

2. The deferred charge on refunding results in the difference in the carrying value of refunded debt and its reacquisition price. The amount is deferred and amortized over the life of the refunded debt.

In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Company has one item that qualifies for reporting in this category:

1. The deferred inflows relating to the net pension liability are the results of changes in assumptions, which are amortized to pension expense over a closed period equal to the average of the expected remaining service lives of all employees that are provide pension benefits through the plan.

i. Use of Estimates

The preparation of financial statements in conf ormity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount s of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

j. Net Position

Sometimes the Company will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unres tricted resources. In order to calculate the amounts to report as restricted – net posit ion and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restrict ed – net position to have been depleted before unrestricted – net position is applied.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(28)
Note 1: Organization and Summary of Si gnificant Accounting Policies (Continued) k. Pensions
For pu rposes of measuring the net pensi on liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Company’s California Public Employees’ Retirement System (CalPERS) Plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit term s. Investments are reported at fair value.

The General Fund has typically been used in prior years to liquidate pension liabilities. l. Adoption of New Accounting Standards
GASB Statement No. 87, Leases
In June 2017, the GASB issued GASB Statement No. 87, Leases. This standard requires the recogniti on of certain lease assets and lia bilities for leases that previously were classified as operating leases and as inflow s of resources or outflows of resource s recognized based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational pr inciple that leases are financings of the right to use an underlying asset. Under this st andard, a lessee is r equired to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is require d to recognize a lease receivable and a deferred inflow of resources.

The Company adopted the requirements of the guidance effective July 1, and has applied the provisions of this standard to the beginning of the period of adoption.

Note 2: Cash and Investments
Cash a
nd Investments as of June 30, 2022, are classified in the accompanying financial statements as follows:

Statement of net position:

Cash and investments 36,112,298 $
Cash and investments, restricted 11,188,835
Total cash and investments 47,301,133 $
Cash an
d investments as of June 30, 2022, consist of the following:

Cash on hand 3,000$
Deposits with financial institutions 26,390,602
Cash with fiscal agent - deposits 91,966
Investment in the City cash and investment pool 20,815,565 Total cash and investments 47,301,133$

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(29)
Note 2: Cash a
nd Investments (Continued)
Investments Authorized by the California Government Code and the Company’s Investment Policy
The table bel ow identifies
the investment types that are authorized for the Company by the California Government Code and the Company’s investment policy. The table also identifies certain provisions of the California Government Code (or the Company’s investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the Company, rather than the general provisions of the California Government Code or the Company’s investment policy.

Authorized *Maximum *Maximum
by Percentage Investment
Investment *Maximum of in One
Investment Types Authorized by State Law Policy Maturity Portfolio Issuer Local Agency Bonds Yes 5 years None None
U.S. Treasury Obligations Yes 5 years None None
U.S. Agency Securities Yes 5 years None None
Bankers' Acceptances Yes 180 days 40% 30%
Commercial Paper Yes 270 days 15% 10%
Negotiable Certificates of Deposit Yes 5 years 30% None Repurchase Agreements Yes 1 year None None
Reverse Repurchase Agreements Yes 92 days 20% None
Medium-Term Notes Yes 5 years 30% 5%
Mutual Funds Yes N/A 20% 10%
Money Market Mutual Funds Yes N/A 20% 10%
Mortgage Pass-Through Securities Yes 5 years 20% None
County Pooled Investment Funds Yes N/A None None
Local Agency Investment Fund Yes N/A None None
Joint Power Agency Pools (Other Investment Pools) Yes N/A None None *Based on st
ate law requirements or investment policy requirements, whichever is more restrictive.

Investments Authorized by Debt Agreements
Investment
s of debt proceeds hel d by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Company’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.

Maximum Minimum
Authorized Investment Type Maturity Rating
U.S. Treasury Obligations None N/A
U.S. Agency Securities None N/A
State and Local Agency Bonds None Aa
Bankers' Acceptances 360 Days Aa
Commercial Paper 270 Days Aa
Negotiable Certificates of Deposit None Aa
Repurchase Agreements None Aa
Money Market Mutual Funds N/A Aaa
Investment Contracts None Aa

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(30)
Note 2: Cash a
nd Investments (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the r
isk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in ma rket interest rates. One of the ways that the Company manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing ca sh flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

The Company’s investments in the City cash and investment pool are pooled the City of Pasadena. See the City’s of Pasadena’s June 30, 2022, Annual Comprehensive Financial Report for more information about interest rate risk for the pooled cash and investments.

Disclosures Relating to Credit Risk
Generally
, credit risk is the risk that an issuer of an investment will not fulf ill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the Company’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.

Ratings at End
Minimum
Investment Type Legal Rating Not Rated
Investments in the City
cash and investment pool 20,815,565$ N/A 20,815,565 $ Total 20,815,565 $ 20,815,565 $
Custodial Credit Risk
Cust
odial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government w ill not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(31)
Note 2: Cash a
nd Investments (Continued)
The California Government Code and the Company’s investment policy do not contain legal or policy requirements that would limit t he exposure to custodial credit risk for deposits or investments, other than the following provision for d eposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure Company deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public dep osits. As of June 30, 2022, $416,062 of the Company’s deposits (bank balances) were insured by the Federal Deposit Insurance Corporation and none were uninsured and uncollateralized.

Fair Value Hierarchy
The Comp
any categorizes its fair value 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. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are quoted prices for similar assets in active markets; Level 3 inputs are significant unobservable inputs.

The Company’s investments in the City cash and investment pool are not subject to the fair value hierarchy. Further details on the City’s cash and investment pool fair value hierarchy can be found in the City’s Comprehensive Annual Financial Report for the fiscal year ended June 30, 2022.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(32)
Note 3: Capital Assets
Rose Bowl
Capital Asse ts activity for the year ended June 30, 2022, is as follows:

Balance at Balance at
July 1, 2021 Balance at
Restated (1) Transfers Additions Deletions June 30, 2022 Capital assets being depreciated
and amortized:

Buildings and improvements 209,232,153$ - $ -$ -$ 209,232,153$ Improvements other than buildings 44,906,019 1,083,315 36,825 - 46,026,159 Machinery and equipment 17,872,958 529,376 - - 18,402,334 Right-to-use lease assets 47,716 - 29,922 - 77,638
Total capital assets being
depreciated and amortized 272,058,846 1,612,691 66,747 - 273,738,284 Less accumulated depreciation
and amortization:

Buildings and improvements (61,911,173) - (7,550,654) - (69,461,827) Improvements other than buildings (36,542,373) - (2,750,332) - (39,292,705) Machinery and equipment (14,305,956) - (1,336,043) - (15,641,999) Right-to-use lease assets - - (21,552) - (21,552) Total accumulated depreciation
and amortization: (112,759,502) - (11,658,581) - (124,418,083) Net depreciable/amortizable assets 159,299,344 1,612,691 (11,591,834) - 149,320,201 Capital assets not depreciated:

Construction in progress 134,135 (1,612,691) 1,478,556 - - Capital assets, net 159,433,479$ -$ (10,113,278)$ -$ 149,320,201$ Depr eciation expense for the year was $11,658,581.
(1) The beginning balance was restated to add right-to-use lease assets due to the implementation of GASB Statement No. 87, Leases. See Note 1l.

Golf Cou
rse
Capital asset activity for the year ended June 30, 2022, is as follows:

Balance at Balance at
July 1, 2021 Transfers Additions Deletions June 30, 2022 Capital assets being depreciated:

Buildings and improvements 1,638,524 $ - $ -$ -$ 1,638,524$ Improvements other than buildings 12,077,513 - 16,304 - 12,093,817 Machinery and equipment 1,634,532 - - - 1,634,532
Total depreciable capital assets 15,350,569 - 16,304 - 15,366,873 Less accumulated depreciation:

Buildings and improvements (1,130,062) - (43,831) - (1,173,893) Improvements other than buildings (6,518,173) - (649,712) - (7,167,885) Machinery and equipment (792,035) - (102,278) - (894,313) Total accumulated depreciation (8,440,270) - (795,821) - (9,236,091) Net depreciable assets 6,910,299 - (779,517) - 6,130,782 Capital assets not depreciated:

Construction in progress 970 - - - 970 Capital assets, net 6,911,269$ -$ (779,517)$ -$ 6,131,752$ Depreciation expense for the year was $795,821.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(33)
Note 4: Lease
Receivables
The Company, acting as lessor, leases land under a long-term, noncancelable, multi-party, contract. The lease expires on June 30, 2025. During the year ended June 30, 2022, the Company recognized $231,524 and $3,212 in lease revenue and interest revenue, respectively, pursuant to this contract.

Note 5: Long-Term Liabilities
Rose Bowl
Long
-term liabilities for the year ended June 30, 2022, are as follows:

July 1, 2021, Additions/ Deletions/ Balance at Due in
as Restated (1) Accretions Amortizations June 30, 2022 One Year 2010A Tax-Exempt Lease
Revenue Bonds:

Capital Appreciation Bonds 23,282,536 $ 1,583,125 $ 24,865,661$ -$ 2010B Taxable Build America Lease
Revenue Bonds 106,660,000 - - 106,660,000 - 2010D Taxable Recovery Zone
Economic Development Lease
Revenue Bonds 7,400,000 - - 7,400,000 - 2016A Tax-Exempt Lease Revenue
Bonds 21,865,000 - 1,980,000 19,885,000 2,255,000 2016A Bond Premium 3,163,665 - 550,202 2,613,463 - 2018A Tax-Exempt Lease Revenue
Bonds 30,585,000 - - 30,585,000 - 2018A Bond Premium 4,068,204 - 184,919 3,883,285 - 2018B Taxable Lease Revenue
Bonds 9,405,000 - 1,865,000 7,540,000 2,155,000 2018B Bond Discount (46,170) - (6,596) (39,574) - Subtotal - Bonded Long-Term
Liabilities 206,383,235 1,583,125 4,573,525 203,392,835 4,410,000 Leases Payable 47,716 29,922 21,877 55,761 23,847 Compensated Absences 214,756 176,554 176,626 214,684 176,567 Total Long-Term Liabilities 206,645,707$ 1,
789,601$ 4,772,028$ 203,663,280$ 4,610,414$ (1) The begi
nning balance was restated to add leases payable due to the implemen tation of GASB Statement No. 87, Leases. See Note 1l.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(34)
Note 5: Long-Term Liabilities (Continued)
2010 Rose Bowl Lease Revenue Bonds
On November 18, 2010, the City of Pasadena issued four series of lease revenue bonds, Series 2010A through D (Rose Bowl Renovation Project) in the aggregate amount of $155,873,265. Series A in the amount of $36,808,265 contained $25,220,000 of current interest bonds maturing between fiscal year 2019-2020 and fiscal year 2026-2027, with the remaining $11,588,265 in the form of capital app reciation bonds maturing serially from fiscal year 2026-2027 to 2032-2033. Series B contained $106,660,000 of taxable Build America Bonds. These bonds are in two coupons, the initial series maturing during fiscal year 2033-2034 and the final maturing during fiscal year 2042-2043. Series C contained $5,005,000 of taxable bonds which have fully ma tured as of fiscal year 2019-2020. Finally, Series D contained $7,400,000 of taxable Recovery Zone Economic Development Bonds that have one maturity during fiscal year 2042-2043. The bonds, except for the capital appreciation bonds in Series 2010A, commenced interest payments on March 1, 2011, and are payable semiannually. The Company received $154,878,301 of the proceeds from the bonds. The bonds were issued to finance improvements to the Rose Bowl Stadium, to fund capitalized interest on a por tion of the 2010 Bonds, to fund a Bond Reserve Fund, and to pay the costs of issuance of the 2010 Bonds. Renovations of the existing Rose Bowl Stadium are proposed to continue to allow use by the UCLA Bruins football team, the Rose Bowl Game, Bowl Championship Series (BCS) games, soccer matches, concerts, and special events as well as to bring certain building systems up to current City Building Code requirements and improve public safety.

The 2010B bonds were issued for purposes of the American Recovery and Reinvestment Act of 2009 signed into law on February 17, 2009 (the Recovery Act). Pursuant to the Recovery Act, the City expects to receive a cash subsidy payment from the United States Treasury equal to 35% of the interest payable by the City on or about each interest payment date. The cash payment does not constitute a full faith and credit guarantee of the United States Government but is required to be paid by the Treasury under the Recovery Act. Any cash subsidy payments received by the City do not constitute revenues that can offset interest expense and are not pledged under the indenture to secure the 2010 bonds.

The 2010D bonds were issued for purposes of the Recovery Act. Pursuant to the Recovery Act, the City expects to receive a cash subsidy pay ment from the United States Treasury equal to 45% of the interest payable by the City on or about each interest payment date. The cash payment does not constitute a full faith and credit guarantee of the United States Government but is required to be paid by the Treasury under the Recovery Act. Any cash subsidy payments received by the City do not c onstitute revenues that can offset interest expense and are not pledged under the indenture to secure the 2010 bonds.

For the year ended June 30, 2022, the Treasury made subsidy payments totaling $2,740,792 towards the interest due on the 2010B and 201D bonds which has been included in other nonoperating revenues.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(35)
Note 5: Long-Term Liabilities (Continued)
2010 Rose Bowl Lease Revenue Bonds (Continued)
The total an nual d
ebt service requirements for the 2010 Lease Revenue Bonds including accretion as of June 30, 2022, are as follows:

June 30 Series A Series B Series D Interest Total
2023 -$ -$ -$ 8,138,391$ 8,138,391$
2024 - - - 8,138,391 8,138,391
2025 - - - 8,138,391 8,138,391
2026 - - - 8,138,391 8,138,391
2027 2,095,000 - - 8,138,391 10,233,391
2028-2032 33,875,000 - - 40,691,955 74,566,955 2033-2037 5,955,000 37,605,000 - 36,628,988 80,188,988 2038-2042 - 61,525,000 - 19,124,117 80,649,117
2043 - 7,530,000 7,400,000 1,067,196 15,997,196
Total 41,925,000 106,660,000$ 7,400,000$ 138,204,211$ 294,189,211$ Less: Future Accretion (17,059,339)
24,865,661$
Principal Payments
Disclosure Related
to Long-Term Debt Under GASB 88
In case of default, the following is the course of action:
(a) Upon the happening of any of the events & defaul t, 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)
ex
ercise any and all remedies available or granted to it under the Sublease or pursuant to law, to the extent not inconsis tent with the remedies granted under the Sublease or (ii) by mandamus or other suit, action or proceeding at la w 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 agreemen t, condition, covenant or term contained in the Sublease required to be observed or perform ed 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 assi gnee 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, regardle ss of whether or not the City has abandoned the Leased Prope rty; 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. 2016 Rose Bowl Lease Revenue Bonds
On September 20, 2016, the City issu
ed a 2016 Lease Revenue Bond, Series 2016A in the
aggregate amount of $27,642,127. The bond was is sued to refund a portion of the 2010 Lease Revenue Series A Bond. Series 2016A contained $23,385,000 of refunding bonds for the 2010 Lease Revenue Series A Bond.

Principal is payable in annual installm ents ranging from $1,980,000 to $5,130,000 commencing April 1, 2022 and ending April 1, 2027.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(36)
Note 5: Long-Term Liabilities (Continued)
2016
Rose Bowl Lease Revenue Bonds (Continued)
The bala nce
outstanding at June 30, 2022 is comprised of the principal amount of $19,885,000, plus unamortized deferred bond premium of $2,613,463, for a total of $22,498,463.

The annual debt service requirements for the 2016 Lease Revenue Bond as of June 30, 2022, is as follows:

June 30 Principal Interest Total
2023 2,255,000$ 994,250$ 3,249,250$
2024 4,310,000 881,500 5,191,500
2025 4,705,000 666,000 5,371,000
2026 5,130,000 430,750 5,560,750
2027 3,485,000 174,250 3,659,250
Total 19,885,000$ 3,146,750$ 23,031,750$
2018 Ro
se Bowl Lease Revenue Bonds
On No vemb
er 14, 2018, the City issued two 2018 Lease Revenue Bonds (Rose Bowl Renovation Project), Series 2018A and 2018B in the aggregate amount of $43,100,000. The 2018 bonds were issued to defease and refund all the 2013 Lease Revenue Bonds (Rose Bowl Renovation Project) and pay costs of issuance of the 2018 bonds.

The Series 2018A balance outstanding at June 30, 2022 is comprised of the principal amount of $30,585,000, plus unamortized deferred b ond premium of $3,883,285, for a total of $34,468,285.

The Series 2018B balance outstanding at June 30, 2022 is comprised of the principal amount of $7,540,000, plus unamortized deferred bo nd discount of ($39,574), for a total of $7,500,426.

The annual debt service requirements for t he 2018 Lease Revenue Bonds as of June 30, 2022, are as follows:

June 30 Series A Series B Interest Total
2023 -$ 2,155,000$ 1,753,966$ 3,908,966$
2024 - 665,000 1,706,568 2,371,568
2025 - 915,000 1,678,781 2,593,781
2026 - 1,165,000 1,642,038 2,807,038
2027 - 1,425,000 1,596,713 3,021,713
2028-2032 6,730,000 1,215,000 6,987,763 14,932,763 2033-2037 9,665,000 - 4,791,375 14,456,375
2038-2042 9,105,000 - 2,140,125 11,245,125
2043 5,085,000 - 64,625 5,149,625
Total 30,585,000$ 7,540,000$ 22,361,954$ 60,486,954$ Principal Payments

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(37)
Note 5: Long-Term Liabilities (Continued)
Pledge of Ro
se Bowl Stadium Revenues
In accorda
nce with the Company’s bond indenture, the Company has pledged all of the future revenues to secure repayment of the af orementioned bonds. Proceeds from the bonds provided financing for improvements to the Rose Bowl Stadium. The bonds are payable from net revenues and are payable through maturity . Annual principal and interest payments on the bonds are expected to require less than 67% of net revenues. The total principal and interest remaining to be paid on the bonds ar e $377,707,915. Principal and interest paid for the current year and total net revenues were $14,896,741 and $30,225,641, respectively.

Rose Bowl Leases Payable
The Compa n
y leases equipment for various terms under long-term, noncancelable lease agreements. The leases expire at various dates through October 2024.

Total future minimum lease payments under lease agreements are as follows:

Principal Interest Total
2023 23,847$ 141 $ 23,988$
2024 23,922 66 23,988
2025 7,992 5 7,997
Total minimum lease payments 55,761$ 212 $ 55,973$ Golf Cou
rse
Long
-term liabilities for the year ended June 30, 2022, are as follows:

Balance at Additions/ Deletions/ Balance at Due in
July 1, 2021 Accretions Amortizations June 30, 2022 One Year Lease Payable 621,224 $ - $ 51,769$ 569,455$ 51,769$ Compensated Absences 12,734 8,390 11,276 9,848 8,721 Total Long-Term Liabilities 633,958$ 8,390$ 63,045$ 579,303$ 60,490$ Lease Payabl
e
On June
15, 2018, the Company entered into an agreement with American Golf Corporation to finance $776,530 worth of golf equipment to be paid over a 15-year period at $51,769 per year. There is no interest charged on this financing.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(38)

Note 6: Net Position

Net position for the Rose Bowl Stadium at June 30, 2022, consisted of the following:

Net investment in capital assets:

Property, plant, and equipment, net 149,320,201 $
Less:

Net carrying value of capital-related debt (170,764,128) Accounts payable on capital assets (120,223)
Total net investment in capital assets (21,564,150)
Restricted for debt service 11,188,835
Unrestricted net deficit (20,645,788)
Total net position (31,021,103) $

Net position for the Golf Course at June 30, 2022, consisted of the following:

Net investment in capital assets:

Property, plant, and equipment, net 6,131,752 $
Less:

Outstanding debt issued to construct capital assets (569,455) Accounts payable on capital assets -
Total net investment in capital assets 5,562,297
Unrestricted net position (designated):

Designated for future CIP and major maintenance 422,427 Designated for debt service 672,993
Total designated net position 1,095,420
Undesignated net position 13,252,964
Total unrestricted net position 14,348,384
Total net position 19,910,681 $

Note 7: Defined Benefit Pension Plan

Miscellaneous Plan:

Description of Plan

The Rose Bowl Operating Company participates in cost-sharing multiemployer defined benefit pension plans (Miscellaneous and PEPRA) administered by the California Public Employees’ Retirement System (CalPERS) . All qualified permanent and probationary employees are eligible to participate. Benefit provisions under the Plans are established by State statue and the Company’s Board of Directors.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(39)
Note
7: Defined Benefit Pension Plan (Continued)
Benefits Provided
CalPERS provides
service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who mu st be public employees and beneficiaries.

Benefits are based on years of cr edited 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 are applied as specified by the Public Employees’ Retirement Law.

The Public Employees’ Pension Reform Act of 2013 (PEPRA) r equires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. The PEPRA Plan of the Compan y went into effect during the fiscal year ending June 30, 2014.

The Plans provisions and benefits in effect for the current year, a re summarized as follows:

PEPRA
Miscellaneous* Miscellaneous
Prior to January 1, 2013
Hire date January 1, 2013 and after
Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50 and up 52 and up
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 1.0% to 2.5% Required employee contribution rates 8.00% 6.75%
Required employer contribution rates 12.20% 7.59%
Required employer unfunded liability payment 275,768 $ 4,018 $ * Closed to new entrants.

Contribution Description:

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate.

Funding contributions for the Miscellaneou s Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuaria lly 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 accru ed liability. The Company is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the fiscal year ended June 30, 2022, the Company made contributions to the Plans totaling $593,271.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(40)
Note
7: Defined Benefit Pension Plan (Continued)
Pension Liabilities (Assets), Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension
As of June 30, 2022, the Company reported a net pension liability for its proportionate share of the net pension liability of each Plan of $1,390,048.

The Company’s net pension liability (asset) for the Plans is me asured as the proportionate share of the net pension liability. The net pension liability (asset ) of the Plan is measured as of June 30, 2021, and the total pension liability for the Plan used to calculate the net pension liability (asset) was determined by an actuarial valuation as of June 30, 2020, rolled forward to June 30, 2021, using standard update procedure s. The Company’s proportion of the net pension liability was based on a projection of t he Company’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The Company’s proportionate share of the net pension liability for the Plans as of June 30, 2020 and 2021, was as follows:

Miscellaneous
Proportion - June 30, 2020 0.07105%
Proportion - June 30, 2021 0.07321%
Change - Increase (Decrease) 0.00216%
For the ye ar
ended June 30, 2022, the Co mpany recognized pension expense of $231,085 for the Plans. At June 30, 2022, the Company reported deferred outflow s of resources and deferred inflows of resources related to pension from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement
date 593,271 $ - $
Difference between expected and actual
experience 155,879 -
Changes in assumptions - -
Net difference between projected and actual
earnings on pension plan investments - (1,213,439)
Changes in proportion and difference between
employer contributions and proportionate share of
contributions 139,109 -
Total 888,259$ (1,213,439)$

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(41)
Note
7: Defined Benefit Pension Plan (Continued)
The $593,271 reported as deferred outflows of resources relat ed to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts report ed as deferred outflows of resources and deferred inflows of reso urces related to pensions will be re cognized as pension expense as follows:

Deferred
Outflow (Inflow)
Year Ended June 30, of Resources
2023 (138,094) $
2024 (188,076)
2025 (256,950)
2026 (335,331)
Total (918,451)$
Actuaria
l Assumptions
For the measurement peri
od ended June 30, 2021 (the measurement date), the total pension liability was determined by rolling forward the Ju ne 30, 2020, total pension liability. The June 30, 2020 and the June 30, 2021, total pension liabilities were based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry age Normal in accordance with the requirements of GASB Statement No. 68.

Actuarial Assumptions
Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return 7.15% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

Mortality Rate Table (1) Derived using CalPERS' Membership Data for all Funds.

Post Retirement Benefit Contract COLA up to 2.50% until Purchasing Increase Power Protection Allowance Floor on
Purchasing Power applies, 2.50% thereafter.
(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 includes 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.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(42)
Note
7: Defined Benefit Pension Plan (Continued)
All other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website.

Change in Assumptions
For the measurem
ent date, June 30, 2021, there were no changes of assumptions.

Discount Rate
The discount
rate used to measure the total pension liability was 7.15% for each Plan. The projection of cash flows used to determine the di scount rate assumed that contributions from plan members will be made at stat utorily required rates, actuarially determined. Based on those assumptions, the Plans’ 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 wa s applied to all periods of projected benefit payments to determine the total pension liability.

Long-Term Expected Rate of Return
The long-term expe
cted 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, CalPERS took into account both short-term and long-term market return expect ations as well as the expected pension fund cash flows. Using historical returns of a ll the funds’ asset classes, expected compound (geometric) returns were calculated over the sh ort-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(43)
Note
7: Defined Benefit Pension Plan (Continued)
The expected real rates of return by asset class are as follows:

New
Strategic Real Return Real Return
Asset Class1 Allocation Years 1-102 Years 11+**
Global Equity 50.00% 4.80% 5.98%
Global Debt Securities 28.00% 1.00% 2.62%
Inflation Assets - 77.00% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% - -0.92%
(1) In the System's CAFR, Fixed Income is included in Global Debt Securities, Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity.
(2) An expected inflation of 2.0% used for this period. (3) An expected inflation of 2.92% used for this period.

Sensitivity of the Net Pensi
on Liability (Asset) to Changes in the Discount Rate
The followi ng
presents the net pension liability (asset) of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability (asset) 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 Current Discount
Rate - 1% Discount Rate Rate + 1%
(6.15%) (7.15%) (8.15%)
Plan's Net Pension
Liability/(Assets) 3,292,145 $ 1,390,048 $ (182,388) $ Note 8: Adva
nce From Vendor
During the year ended June 30, 2018, the Company signed an agreement with Levy Premium Food Service to buy out the contract of SodexoMagic. This agreement provided the Company an advance of $1,000,000 to purchas e capital improvements. The Company must reimburse the vendor $100,000 per year over 10 years expiring on June 30, 2028. The total amount due at June 30, 2022, was $600,000. Any unpaid or unrecouped portion of the advance shall be reimbursed to Levy Premium Food Service as a precondition to the effectiveness of termination of the agreement for any reason.

Note 9: Self-Insurance Program
The Company is entitled to indemnity from the Ci ty, and its losses are included in the City’s general liability self-insurance program and under the excess general liability policies. RBOC carries statutory workers’ compensation insu rance with no retention. Tenants of the Rose Bowl provide insurance, naming the City of Pasadena as additional insured on their policies.

See the City of Pasadena’s financial statements for further details.

ROSE BOWL OPERATING COMPANY

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
(44)
Note 10: Golf Cou
rse Management Agreement
The Golf Course is operated and maintained by American Golf Corporation (AGC) under the terms of an agreement, effective June 15, 2018, and expires on June 30, 2028. The agreement entitles AGC to a base management fee of $325,000 per year and increased annually thereafter based upon the change in the CPI for each ensuing operating year. The increase shall not be more than 5% annually, and in no event shall there be a decrease, even if there is a decrease in the CPI. In addition, if the net operating income exceeds the targeted net operating income, AGC shall be entitled to an incentive management fee in each operating year equal to the lesser of the am ount by which the net operating income exceeds the targeted net operating income or $40,000. In each operating year that net operating income exceeds the targeted net operating income by more than $40,000, AGC shall be entitled to a second incentive management fee equal to 15% of the net operating income in excess the base target.

Note 11: Related Party Transactions
During the current year, the Company incurred charges for the use of the City’s building maintenance (electricians, plumbers), locks miths, printing, and mail services. These nonevent expenses totaled $1,839,368 and are included within general and administrative expenses. During the current year, the Company also paid the City for police, fire, and public works services, primarily for events, amount ing to $2,750,000 and Golf utilities totaling $1,314,268. At June 30, 2022, amounts payable to the City totaled $1,532,654.

During the current year, the City contributed $9,258,005 to the Company by making payments towards the debt service requirement s of the bonds described in Note 5 on behalf of the Company.

In addition, at June 30, 2022, Company has amo unts receivable from the City related to the 2006 bond refunding in the amount of $438,830, which will be received through annual payments from the City through 2043.

Note 12: Commitments and Contingencies
Grant Programs
The Comp a
ny has received intergovernmental grant revenues in the current year ($10,000,000 through the shuttered venue oper ating grant from the U.S. Small Business Administration). The use of these grant revenu es is subject to further examination by the grantors, and the amount, if any, of expenses which may be disallowed by the granting agencies cannot be determined at this time. The Company expects such amounts, if any, to be immaterial.

Management Agreement
As a
part of the Company’s management agreement with American Golf Corporation, the Company may be required to return up to $6 00,000 of capital contributions previously received from AGC, if the management agreement were to be terminated prior to the end of the stated term in June 2028.

ROSE BOWL OPERATING COMPANY

SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

CALPERS MISCELLANEOUS PENSION PLAN
Last Ten Years*
(45)
Fiscal year ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Measurement period June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Plan's proportion of the net pension liability 0.07321% 0.07105% 0.06964% 0.06867% Plan's proportionate share of the net
pension liability 1,390,048$ 2,996,767$ 2,788,864$ 2,587,867$ Plan's covered payroll 2,655,214$ 3,273,956$ 3,083,082$ 2,798,456$ Plan's proportionate share of the net
pension liability as a percentage of its
covered - payroll 52.35% 91.53% 90.46% 92.47%
Plan's proportionate share of the fiduciary
net position as a percentage of the Plan's
total pension liability 90.35% 76.58% 75.26% 77.69%
Plan's proportionate share of aggregate
employer contributions 511,956$ 437,821$ 355,030$ 302,458$ Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016
For fiscal year ended June 30, 2017:

There were no changes in assumptions.

For fiscal year ended June 30, 2018:

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

For fiscal year ended June 30, 2019:

For fiscal years ended June 30, 2020, 2021, and 2022:

There were no changes in assumptions.
* Measurement period 2013-14 (fiscal year 2015) was the 1st year of implementation, therefore, only eight years are shown.

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense 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 pension plan administrative expenses.

Demographic assumptions and inflation rate were changed in accordance with the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.

ROSE BOWL OPERATING COMPANY

SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (CONTINUED)

CALPERS MISCELLANEOUS PENSION PLAN
Last Ten Years*
(46)
Fiscal year ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement period June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Plan's proportion of the net pension liability 0.06821% 0.067 66% 0.07266% 0.02717% Plan's proportionate share of the net
pension liability 2,688,676$ 2,350,455$ 1,993,478$ 1,690,891$ Plan's covered payroll 2,583,602$ 2,183,555$ 2,292,759$ 2,304,751$ Plan's proportionate share of the net
pension liability as a percentage of its
covered - payroll 104.07% 107.64% 86.95% 73.37%
Plan's proportionate share of the fiduciary
net position as a percentage of the Plan's
total pension liability 75.39% 75.87% 78.40% 76.63%
Plan's proportionate share of aggregate
employer contributions 262,966$ 410,605$ 211,985$ 103,894$

ROSE BOWL OPERATING COMPANY
SCHEDULE OF THE PLAN CONTRIBUTIONS – MISCELLANEOUS COST SHARING PLAN Last Ten Years*
(47)
Fiscal year ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Contractually required contribution
(actuarially determined) 593,271$ 513,532$ 537,091$ 470,264$ Contributions in relation to the actuarially
determined contributions (593,271) (513,532) (537,091) (470,264) Contribution deficiency (excess) -$ -$ -$ -$
Covered payroll 3,209,344$ 2,655,214$ 3,273,956$ 3,083,082$ Contributions as a percentage of covered
payroll 18.49% 19.34% 16.40% 15.25%
Notes to Schedule:

Valuation Date 6/30/2019 6/30/2018 6/30/2017 6/30/2016
Methods and Assumptions Used to
Determine
Contribution Rates:

Actuarial cost method Entry age Entry age Entry age Entry age Amortization method (1) (1) (1) (1)
Asset valuation method Market Value Market Value Market Value Market Value Inflation 2.50% 2.50% 2.63% 2.75%
Salary increases (2) (2) (2) (2)
Investment rate of return 7.00% (3) 7.00% (3) 7.25% (3) 7.375% (3) Retirement age (4) (4) (4) (4)
Mortality (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 50 for all plans with the exception of 52 for Miscellaneous PEPRA 2%@62 (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* Fiscal year 2015 was the 1st year of implementation, therefore, only eight years are shown.

ROSE BOWL OPERATING COMPANY
SCHEDULE OF THE PLAN CONTRIBUTIONS – MISCELLANEOUS COST SHARING PLAN (CONTINUED) Last Ten Years*
(48)
Fiscal year ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually required contribution
(actuarially determined) 403,984$ 371,534$ 317,561$ 324,587$ Contributions in relation to the actuarially
determined contributions (403,984) (371,534) (317,561) (324,587) Contribution deficiency (excess) -$ -$ -$ -$
Covered payroll 2,798,456$ 2,583,602$ 2,373,593$ 1,922,101$ Contributions as a percentage of covered
payroll 14.44% 14.38% 13.38% 16.89%
Notes to Schedule:

Valuation Date 6/30/2015 6/30/2014 6/30/2013 6/30/2012
Methods and Assumptions Used to
Determine
Contribution Rates:

Actuarial cost method Entry age Entry age Entry age Entry age Amortization method (1) (1) (1) (1)
Asset valuation method Market Value Market Value Market Value 15 Year Smoothed
Market Method
Inflation 2.75% 2.75% 2.75% 2.75%
Salary increases (2) (2) (2) (2)
Investment rate of return 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement age (4) (4) (4) (4)
Mortality (5) (5) (5) (5)

(49)
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Board of Directors
Rose Bowl Operating Company
Pasadena, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of each enterprise fund of the Rose Bowl Operating Company (the Company), a component unit of the City of Pasadena, California, as of and for the year ended June 30, 2022 and the related notes to the basic financial statements, which collectively comprise the Company’s basic financial statements, and have issued our report thereon dated January 12, 2023.

Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Company’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, we do not expr ess an opinion on the effectiveness of the Company’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the deficiency descri bed in the accompanying schedule of findings and questioned costs as item 2022-001 to be a material weakness.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com

Board of Directors
Rose Bowl Operating Company
(50)
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2022-002 to be a significant deficiency.

Compliance and Other Matters
As part of obtaining rea
sonable assurance about whether Company’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Company’s Response to Finding
The City’s response to the findings identified in our audit are described in the accompanying schedule of findings. The City’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Company’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Company’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
January 12, 2023

Board of Directors
Rose Bowl Operating Company
(51)
Rose Bowl Operating Company
Schedule of Findings
Year Ended June 30, 2022
2021– 001
Type of Finding: Material Weakness in Internal
Control over Financial Reporting
Condition: During our review of grant revenues, we noted that revenue in the amount of $700,000 on cost reimbursement-type grants had been recognized though no allowable expenditures under the grants had been incurred.

Criteria or specific requirement: Revenue on cost reimbursement-type grants should be recognized once allowable expenditures under the grants have been incurred.

Effect: This resulted in a material audit adjustment to adjust for an overstatement of grant revenue and receivables.

Cause: Grant revenues from reimbursement-type gr ants had not been recognized in the Company’s recent past so they were unaware of the revenue recognition requirements of the grants.

Recommendation: We recommend that the Company research and consult, as necessary, when accounting for transactions which they are not familiar with.

Views of responsible officials and planned corrective actions:

RBOC grant application and experience history has been limited. During the 2021 year end close RBOC was not going to recognize $10M in the SVOG grant. In consultation with CLA, RBOC recognized the $10M in 2021; and after additional consultation with CLA the grant entry was reversed as the award date was after fiscal 2021 year end.

RBOC received award letters for the Save America’s Treasures grant (award for period duration 09/01/2021 to 09/30/2024) and California State Nonprofit Security Grants Program (award period duration 01/01/22 to 12/31/23). During the current year, RBOC recorded the grants as revenue as their award period encompassed 06/30/22. However, since the allowable expenditures had not been incurred during Fiscal 2022 the conditions to recognize the grant were not fully met; therefore, the entry needed to be reversed.

In future years RBOC intends on consulting prior to recording unusual and unfamiliar transactions. As related to grants, RBOC will assure that the grant award and allowable expenditures are incurred in the audited fiscal year for the grant revenue recognition to occur.

Board of Directors
Rose Bowl Operating Company
(52)
2021– 002
Type of Finding: Significant Deficie
ncy in Internal Control over Financial Reporting
Condition: During our review of balances due to the Company’s golf course operator, we noted that the balance was blended with interfund balances and that an amounts due to golf course operator had not been fully reconciled. Additionally, we noted that the allocation of net pension liability allocated to the golf fund was overstated.

Criteria or specific requirement: As a part of internal control procedures over financial close and reporting, the Company should ensure that account balances are reconciled and reviewed for reasonableness.

Effect: Interfund balances of $625,497 were blended within balances due and from the operator of the golf course, and the allocation of net pension liability between the stadium and golf course operation was misstated by approximately $170,000.

Recommendation: We recommend that the Company reconcile its balances between funds and the golf operator on a regular basis to ensure that they are reported accurately and to ensure that reconciling items are cleared on a timely basis. We further recommend that, as a part of its closing procedures, the Company perform a review of its financial statements for reasonableness of account balances.

Views of responsible officials and planned corrective actions:

Interfund balance of $625,497: In December of 2021 AGC made an accounting software change and
experienced staff turnover which significantly impacted reporting and reconciliation to the RBOC. This caused delays and difficulties for RBOC review of interfund balances and accounts reconciliations reported by AGC. RBOC worked diligently to understand the interfund balances for reconciliation purposes.

RBOC remediation plan is to set a recurring statement review process and reconciliation with AGC.

Golf Course / Stadium operation allocation on pension liability $170,000: RBOC remediation plan is to use the General Ledger expense allocation as a check point to assure the model output is in line with the annual CalPERS allocations between the Golf and Stadium.

PASADENA COMMUNITY ACCESS CORPORATION
(A COMPONENT UNIT OF THE CITY OF

PASADENA, CALIFORNIA)

FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Attachment E

PASADENA COMMUNITY ACCESS CORPORATION

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 5

BASIC FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 9

STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET
POSITION 10
STATEMENT OF CASH FLOWS 11
NOTES TO BASIC FINANCIAL STATEMENTS 12
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 21
SCHEDULE OF FINDINGS AND RESPONSES 23

(1)
INDEPENDENT AUDITORS’ REPORT
Board of Directors
Pasadena Community Access Corporation
Pasadena, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Pasadena Community Access Corporation (the Corporation), a component unit of the City of Pasadena, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Corporation’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Corporation, as of June 30, 2022, and the changes in financial position and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Corporation and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

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

Emphasis of Matters
As discussed in Note 1D to the financial statements, effective July 1, 2021, the Corporation adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. The guidance requires lessees to recognize a right-to-use assets and corresponding lease liability for all leases with lease terms greater than twelve months. Our opinion is not modified with respect to this matter.

As discussed in Note 13 to the financial statements, the Corporation restated the beginning net position to recognize previously recorded unearned PEG grant revenues. Our opinion is not modified with respect to this matter.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer .

CliftonLarsonAllen LLP
CLAconnect.com

Board of Directors
Pasadena Community Access Corporation
(2)
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Corporation’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Board of Directors
Pasadena Community Access Corporation
(3)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis be presented to s upplement the basic financial statements.

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated March 7, 2023, on our consideration of the Corporation’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Corporation’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Corporation’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
March 7, 2023

(4)
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PASADENA COMMUNITY ACCESS CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
(5)
Our discussion and analysis of the Pasadena Community Access Corporation’s (a component unit of the City of Pasadena, California) (the Corporation) financial performance provides an overview of the Corporation’s financial activities for the fiscal year ended June 30, 2022. Please read it in conjunction with the Corporation’s financial statements, which begin on page 7.

FINANCIAL HIGHLIGHTS
The Corporation’s net position for the fiscal year ended June 30, 2022, was $878,677, an increase of $121,883, or 16.11%, over the prior year.

During the year, the Corporation had operating expenses that were $20,791 more than the $1,027,814 generated from the operating agreement, service contracts, and other operating revenues from the Corporation’s programs from the fiscal year ended June 30, 2022.

Total operating cost of all the Corporation’s programs was $1,048,605. The programmatic activities of the Corporation remained unchanged.

USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Revenues, Expenses, and Changes in Net Position (on pages 9 and 10) provide information about the activities of the Corporation as a whole and present a long-term view of the Corporation’s finances. As the Corporation operates as a business-type activity, no additional fund statements are necessary. When the Corporation charges customers for the services it provides— whether to outside customers or to the City of Pasadena or other governments—these services are reported similarly to the way a business operates.

A Statement of Cash Flows is also presented using the direct method, which portrays inflows and outflows for specific classes of operations along with an indirect reconciliation of increases to net cash provided by operations.

Reporting the Corporation’s Results as a Whole
Our analysis of the Corporation as a whole begins on page 4. One of the most important questions asked about the Corporation’s finances is, “Is the Corporation as a whole better off or worse off as a result of this year’s activities?” The Statement of Net Position and the Statement of Revenues, Expenses, and Changes in Net Position report information about the Corporation as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting , which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

PASADENA COMMUNITY ACCESS CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
(6)
These two statements report the Corporation’s net position and changes in them. You can think of the Corporation’s net position—the difference between assets and liabilities—as one way to measure the Corporation’s financial health, or financial position. Over time, increases or decreases in the Corporation’s net position are one indicator of whether its financial health is improving or deteriorating.

You will need to consider other nonfinancial factors, however, such as changes in the Corporation’s long-term contractual revenues and the condition of the Corporation’s equipment and other assets, to assess the overall health of the Corporation.

THE CORPORATION AS A WHOLE
The Corporation’s net position increased from a year ago, from $756,794 to $878,677. Our analysis below focuses on the net position (Table 1) and changes in net position (Table 2) of the Corporation’s activities.

Restated
June 30, 2022 June 30, 2021
Current and Other Assets 858,961$ 681,979$
Capital Assets, Net 280,093 131,413
Total Assets 1,139,054 813,392
Current Liabilities (231,974) (56,598)
Noncurrent Liabilities (28,403) -
Total Liabilities (260,377) (56,598)
Net Position:

Net Investment in Capital Assets 82,351 131,413 Restricted 474,874 331,654
Unrestricted 321,452 293,727
Total Net Position 878,677$ 756,794$
Table 1
For comparison purposes, the Jun e 30, 2021, column data in Table 1 has been adjusted for the restatement described in Note 13 to the financial statements.

Unrestricted Net Position —The part of net position that can be used to finance day-to-day operations without constraints established by debts, contribution restrictions, or other legal requirements— changed from $293,727 at June 30, 2021, to $321,452 at end of the fiscal year. This nominal increase is a result of the Corporation’s normal operation. The Corporation generally can use this unrestricted net position to finance continuing operations in the coming fiscal year.

PASADENA COMMUNITY ACCESS CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
(7)
Percentage
Restated Changes
June 30, 2022 June 30, 2021 from 2021
Revenues:

Operating Revenues:

Operating Agreement 967,000$ 967,000$ 0.0%
Service Contracts 18,000 10,145 77.4%
Production and Other Operating Revenue 42,814 37,443 14.3% Total Operating Revenues 1,027,814 1,014,588 1.3%
Nonoperating Revenues:

Public, Education and Gov’t (PEG) Revenue 143,220 196,513 -27.1% Interest Income 49 47 4.3%
Total Nonoperating Revenues 143,269 196,560 -27.1%
Total Revenues 1,171,083 1,211,148 -3.3%
Operating Expenses:

Salaries and Benefits 699,379 678,454 3.1%
Production Expense 24,628 18,701 31.7%
Occupancy Expense 44,470 210,250 -78.8%
Contractual Services 26,700 29,100 -8.2%
General and Administrative 40,260 29,520 36.4%
Depreciation and Amortization 213,168 48,701 337.7% Total Operating Expenses 1,048,605 1,014,726 3.3%
Nonoperating Expenses:

PEG Grants Awarded to Other Agencies - 41,066 -100.0% Interest Expense 595 - -
Total Nonoperating Expenses 595 41,066 -98.6%
Total Expenses 1,049,200 1,055,792 -0.6%
Changes in Net Position 121,883 155,356
Net Position - Beginning of Year, as Restated 756,794 601,438 25.8% Net Position - End of Year 878,677$ 756,794$ 16.1%
Table 2
Year Ended
For comparison purposes, the June 30, 2021, column data in Table 2 has been adjusted for the restatement described in Note 13 to the financial statements.

Although the Corporation’s total cost of programs and services had a net decrease of 0.6% ($6,592), a closer look shows that operating expenses increased 3.3% ($33,879), while PEG expenses decreased from $41,066 to $0. The Corporation’s revenues had a net decrease of 3.3% ($40,065), resulting from a combination of increased operating revenues and decreased PEG revenue received from the City of Pasadena in nonoperating revenue.

Budgetary Highlights
Over the course of the year, the board of directors reviewed the budget during meetings. There were no budget reforecasts submitted for approval.

The Corporation’s adopted operating budget was $1,077,700 for the fiscal year ended June 30, 2022.

Actual operating revenues were $49,886 less than budget, and operating expenses were $29,095 less than budget.

PASADENA COMMUNITY ACCESS CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
(8)

CAPITAL ASSETS
At the end of 2022, the Corporation had $280,093 invested in capital assets, net of accumulated depreciation and amortization. (See Table 3 below.) This amount represents a net increase of $148,680 or 113% higher than last year that resulted from the addition of a right-to-use leased building as part of the adoption of the new accounting standard discussed in Note 1D to the financial statements.

June 30, 2022 June 30, 2021
Production Equipment 437,420$ 437,420$
Leasehold Improvements 93,897 93,897
Right-to-Use Leased Building 361,848 -
Less: Accumulated Depreciation and Amortization (613,072) (399,904) Property and Equipment, Net 280,093$ 131,413$
Table 3
More detailed informatio n about the Corporation’s capital assets is presented in Note 3 to the financial statements.

LONG-TERM LIABILITIES
As a result of the current year implementation of the new accounting standard on leases discussed in Note 1D to the financial statements, the Corporation now reports a lease payable related to its leased office and production facilities. The outstanding balance of this lease payable was $197,742 and $361,848 as of June 30, 2022 and 2021, respectively.

More detailed information about the Corporation’s long-term liabilities is presented in Note 5 to the financial statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The Corporation’s board of directors considered many factors when setting the fiscal year 2023 budget.

The most significant budget expense increase is in personnel cost-of-living adjustments. Other increases include occupancy costs with the rent escalator built into the lease, as well as growing services costs mainly in audit and accounting fees.

CONTACTING THE CORPORATION’S FINANCIAL MANAGEMENT
This financial report is designed to provide our stakeholders including donors, customers, and the City of Pasadena’s officials with a general overview of the Corporation’s finances and to show the Corporation’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Corporate Office at 150 S. Los Robles Avenue, Suite 101, Pasadena, California 91101. Our main office number is 626-794-8585 and our email is [email protected].

PASADENA COMMUNITY ACCESS CORPORATION

STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
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2022
ASSETS

CURRENT ASSETS
Cash 360,983$
Accounts Receivable 100
Prepaid Assets 10,584
Deposits 12,420
Restricted Cash 474,874
Total Current Assets 858,961

NONCURRENT ASSETS
Capital Assets, Net of Accumulated Depreciation and Amortization 280,093 Total Assets 1,139,054

LIABILITIES AND NET POSITION

CURRENT LIABILITIES
Accounts Payable 8,021
Accrued Salaries and Benefits 24,320
Accrued Interest Payable 35
Compensated Absences 30,259
Current Portion of Lease Payable 169,339
Total Current Liabilities 231,974

NONCURRENT LIABILITIES
Lease Payable 28,403
Total Liabilities 260,377

NET POSITION
Net Investment in Capital Assets 82,351
Restricted for Public, Educational and Governmental Access 474,874 Unrestricted 321,452
Total Net Position 878,677
Total Liabilities and Net Position 1,371,028$

PASADENA COMMUNITY ACCESS CORPORATION

STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(10)
2022

OPERATING REVENUES
Operating Agreement 967,000$
Service Contracts 18,000
Production and Other Operating Revenue 42,814
Total Operating Revenues 1,027,814

OPERATING EXPENSES
Salaries and Benefits 699,379
Production Expense 24,628
Occupancy Expense 44,470
Contractual Services 26,700
General and Administrative 40,260
Depreciation and Amortization Expense 213,168
Total Operating Expenses 1,048,605
OPERATING LOSS (20,791)

NONOPERATING REVENUES (EXPENSES)
Public, Education, and Government (PEG) Revenue 143,220 Interest Income 49
Interest Expense (595)
Total Nonoperating Revenues 142,674
CHANGES IN NET POSITION 121,883
Net Position - Beginning of Year, as Previously Reported 425,140 Restatement - Note 13 331,654
Net Position - Beginning of Year, as Restated 756,794
NET POSITION - END OF YEAR 878,677$

PASADENA COMMUNITY ACCESS CORPORATION

STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(11)
2022

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 42,814$
Cash Received from Contracts 987,640
Cash Paid to Employees for Services (697,753)
Cash Paid to Suppliers for Goods and Services (138,679) Net Cash Provided by Operating Activities 194,022

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
PEG Grant Funding Received from City of Pasadena 143,220

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Principal Payments on Lease Liability (164,106)
Interest Payments on Lease Liability (560)
Net Cash Provided (Used) by Capital and Related Financing Activities (164,666)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income 49
NET INCREASE IN CASH AND CASH EQUIVALENTS 172,625
Cash - Beginning of Year 663,232
CASH - END OF YEAR 835,857$

RECONCILIATION TO STATEMENT OF NET POSITION
Cash 360,983$
Restricted Cash 474,874
Total Reconciliation to Statement of Net Position 835,857$

RECONCILIATION OF OPERATING LOSS TO NET

CASH PROVIDED BY OPERATING ACTIVITIES
Operating Loss (20,791)$
Adjustments to Reconcile Operating Loss to Net
Cash Provided by Operating Activities:

Depreciation and Amortization 213,168
Decrease in Accounts Receivable 2,640
Increase in Prepaid Assets (6,997)
Increase in Accounts Payable and Accrued Expenses 6,002 Total Adjustments 214,813
Net Cash Provided by Operating Activities 194,022$

PASADENA COMMUNITY ACCESS CORPORATION

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(12)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Pasadena Community Access Corporation (the Corporation) was organized in 1983 as a nonprofit, telecommunications resource for the City of Pasadena, California (the City). The Corporation was organized to perform the community access function of the Pasadena telecommunications system pursuant to the Cable Communications Ordinance of the City. In 2011, the City Council determined that the Corporation should be reported as a discretely presented component unit of the City in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).

The board of directors consists of 11 members with representatives from each of the seven City Council Districts, the Mayor, the City Manager, Pasadena Community College (PCC), and Pasadena Unified School District (PUSD). Residency is required except for the City Manager, PCC, and PUSD representatives. These operations constitute part of the overall financial reporting entity of the City and are accounted for as a discretely presented component unit in the City’s Annual Comprehensive Financial Report consistent with U.S. GAAP. Revenues and expenses of the Corporation include direct revenues and expenses and certain allocations from the City.

B. Basis of Presentation
The Corporation’s basic financial statements are presented in conformance with Governmental Accounting Standards Board (GASB) Statement No. 34, which established standards for external financial reporting for all state and local governmental entities. The basic financial statements include the statement of net position, statement of revenues, expenses, and changes in net position, and statement of cash flows.

C. Basis of Accounting
The Corporation is accounted for as an enterprise fund (proprietary fund type). A fund is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The activities of enterprise funds closely resemble those of ongoing businesses in which the purpose is to conserve and add to basic resources while meeting operating expenses from current revenues. Enterprise funds account for operations that provide services on a continuous basis and are substantially financed by revenues derived from user charges. The Corporation utilizes the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized as they are incurred.

D. Adoption of New Accounting Standard
The Corporation adopted GASB Statement No. 87, Leases. This standard requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and as inflows or outflows of resources recognized based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this standard, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. The Corporation adopted the requirements of the guidance effective July 1, 2021, and has applied the provisions of this standard to the beginning of the period.

PASADENA COMMUNITY ACCESS CORPORATION

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Classification of Revenues and Expenses
The Corporation classifies its revenues and expenses into the following classifications:
operating revenues, operating expenses, nonoperating revenues, and nonoperating expenses. Operating revenues consist of management and operating fees, production services fees, and program services fees, with relating costs to provide these services considered operating expenses. Nonoperating reve nues consist of voluntary nonexchange grants revenue and investment earnings. Nonoperating expenses consist of capital grants made to PCC and PUSD for cable telecommunications equipment.

F. Cash and Cash Equivalents
For the purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates and have an original maturity date of three months or less.

G. Prepaid Assets
Certain payments to vendors, which reflect costs applicable to future accounting periods, are recorded as prepaid assets.

H. Capital Assets
The Corporation capitalizes assets having an estimated useful life in excess of one year and acquisition cost of at least $5,000. Capital assets are recorded either at acquisition cost or initial lease liability amount (for right-to-use leased assets) and are depreciated or amortized (for right-to-use leased assets) over the estimated useful life of the asset using the straight-line method of depreciation/ amortization. Donated capital assets are recorded at acquisition value as of the date of the donation. All significant expenditures exceeding $5,000 for repairs, renewals, and betterments that materially prolong the useful lives of the assets or remeasurements of lease liability (for right-to-use leased assets) are capitalized.

The estimated useful lives of the assets are as follows:

Leasehold Improvements 6 Years
Furniture and Fixtures 5 Years
Production Equipment 5 Years
Right-to-Use Leased Building 3 Years
I. Compensated Absences
Regular full-time and part-time employees accrue vacation. Vacation time is accrued two to four weeks per year, depending on how long an employee has been with the Corporation. Part-time employees who work 20 hours per week or more are eligible to accrue vacation on a pro rata basis. It is the Corporation’s policy to permit employees to accumulate earned but unused vacation benefits from year-to-year up to a maximum of two times a full-time employee’s annual vacation amount. All accumulated compensated absences are recorded as an expense and a liability at the time the benefit is earned.

PASADENA COMMUNITY ACCESS CORPORATION

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(14)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Lease
The Corporation is a lessee for a noncancellable lease of office and production facilities.

The Corporation recognizes a lease liability and an intangible right-to-use asset (lease asset) in the statement of net position. At the commencement of a lease, the Corporation initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date. Subsequently, the lease asset is amortized on a straight-line basis over the shorter of the lease term or useful life of the underlying asset.

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

K. Net Position
Net position represents the difference between assets and liabilities on the statement of net position. Net positions were classified in the following categories: net investment in capital assets and unrestricted.

Net investment in capital assets consists of the cost of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets, as applicable.

Net position is reported as restricted when there are limitations imposed on the use either through the enabling legislation adopted by the Corporation’s board of directors, or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. All other net position is reported as unrestricted.

When both restricted and unrestricted resources are available for use, it is the Corporation’s policy to use unrestricted resources first, and then restricted resources as they are needed.

L. Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

PASADENA COMMUNITY ACCESS CORPORATION

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(15)
NOTE 2 CASH AND INVESTMENTS
Summary of Cash
As of June 30, 2022, cash were reported in the accompanying financial statements:

Cash on Hand 200$
Deposits with Financial Institutions 360,783
Deposits with Financial Institutions - Restricted 474,874 Total Cash 835,857$
Deposits
At June 30, 2022, the carrying amount of the Corporation’s deposits was $835,657 and the bank balance was $836,259. The $602 difference represents outstanding checks and other reconciling items. Balances in the bank are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. Included in the bank balance, the Corporation had a funds in a credit union totaling $123,930. This amount is insured by the National Credit Union Administration (NCUA) up to $250,000.

Restricted Deposits
Restricted deposits, as further described in Notes 6C and 7, are to be utilized for eligible PEG capital expenditures. The total amount of restricted deposits at June 30, 2022 was $474,874.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code does not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the Corporation’s deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2022, the Corporation had uncollateralized deposits in excess of FDIC coverage of $462,329.

PASADENA COMMUNITY ACCESS CORPORATION

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(16)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code The table below identifies the investment types that are authorized for the Corporation by the California Government Code. Other than what is in the Government Code, the Corporation has no other investment policy.

Investment Types Authorized by Maximum Maximum
Authorized by the Investment Maximum Percentage Investment in California Government Code Policy Maturity of Portfolio One Issuer Local Agency Bonds Yes 5 Years None None
U.S. Treasury Obligations Yes 5 Years None None
U.S. Agency Securities Yes 5 Years None None
Bankers’ Acceptances Yes 180 Days 40% 30%
Commercial Paper Yes 270 Days 25% 10%
Negotiable Certificates of Deposit Yes 5 Years 30% None Repurchase Agreements Yes 1 Year None None
Reverse Repurchase Agreements Yes 92 Days 20% None
Medium-Term Notes Yes 5 Years 30% None
Mutual Funds Yes N/A 20% 10%
Money Market Mutual Funds Yes N/A 20% 10%
Mortgage Pass-Through Securities Yes 5 Years 20% None
County Pooled Investment Funds Yes N/A None None
Local Agency Investment Fund Yes N/A None None
Joint Power Agency Pools
(Other Investment Pools) Yes N/A None None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Corporation manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. The Corporation held no investments as of the year ended June 30, 2022.

PASADENA COMMUNITY ACCESS CORPORATION

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(17)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The Corporation held no investments as of the year ended June 30, 2022.

Concentration of Credit Risk
In accordance with GASB Statement No. 40 requirements, the Corporation is considered to be exposed to concentration of credit risk whenever they have invested more than 5% of their total investments in any one issuer. Investments guaranteed by the U.S. Government and investments in mutual funds and external investment pools are excluded from this requirement. The Corporation held no investments as of the year ended June 30, 2022.

NOTE 3 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2022 is as follows:

Balance at
July 1, 2021, Balance at
Restated (1) Additions Dispositions June 30, 2022
Capital Assets Being Depreciated
and Amortized:

Production Equipment 437,420$ -$ -$ 437,420$
Leasehold Improvements 93,897 - - 93,897
Right-to-Use Leased Building 361,848 - - 361,848
Total Capital Assets Being
Depreciated and Amortized 893,165 - - 893,165
Less Accumulated Depreciation
and Amortization for:

Production Equipment (345,129) (30,511) - (375,640) Leasehold Improvements (54,775) (15,650) (70,425)
Right-to-Use Leased Building - (167,007) - (167,007) Total Accumulated Depr-
ciation and Amortization (399,904) (213,168) - (613,072) Total Capital Assets 493,261$ (213,168)$ -$ 280,093$ (1) Beginning balance was restated to add right-to-use lease assets as a result of the implementation of GASB Statement No. 87, Leases.

PASADENA COMMUNITY ACCESS CORPORATION

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(18)
NOTE 4 DEFINED CONTRIBUTION RETIREMENT PLAN
Effective April 4, 2017, the Corporation adopted a Savings Incentive Match Plan for Employees Individual Retirement Account plan (the Plan) for which all employees who have completed 90 days of service are eligible to participate. The employees of the Corporation may elect to contribute to the Plan (subject to overall limits) in any one plan year. Each year the Corporation will make a matching contribution to the Plan on a dollar-for-dollar basis up to 3% of the employee's compensation, for the employees who are contributing to the Plan.

The Corporation contributed $13,356 to the Plan for the year ended June 30, 2022.

NOTE 5 LEASE PAYABLE
Changes in the lease payable as of June 30, 2022, were as follows:

Balance Amount Amount Due
July 1, 2021, Balance Due Within in More than
as Restated (1) Additions Reductions June 30, 2022 One Year One Year 361,848$ -$ (164,106) $ 197,742$ 169,339$ 28,403$ (1) Beginning balance was restated as a result of the implementation of GASB Statement No. 87, Leases.

The Corporation leases office and production facilities in Pasadena, California, under a noncancellable lease agreement. The lease term expires August 31, 2023. The lease payable was determined utilizing an estimated discount rate of 0.218%. Effective September 1, 2021, the current monthly payment is $13,789. The monthly payment is scheduled to increase to $14,203 effective September 1, 2022.

The minimum annual lease payments due during the term of the lease are as follows:

Year Ending June 30, Amount
2023 169,339$
2024 28,403
Total 197,742$
NOTE 6 OTHER PROVISIONS OF REVENUE AND CONTRACTS
A. Franchise Fees
On December 2, 1983, a 15-year cable franchise agreement (the Agreement) was entered into by and between the City and a cable communications operator (Cable Operator). According to the terms of the Agreement, the Corporation is entitled to receive 2% of the Cable Operator's gross revenues (as defined in the Agreement) in return for providing the public access and public service programming function of the Cable Operator's communications system. This agreement expired during the year ended June 30, 1999. The City committed to continue to fund the agreement, after expiration, until a new agreement could be reached.

Effective October 1, 2000, the City and the Cable Operator entered into a new nonexclusive franchise agreement to operate a cable television system in the City. The agreement expired on October 17, 2005, and was extended on a month-to-month basis under mutual agreement with the Cable Operator while negotiating a franchise renewal.

This agreement ended prior to statewide franchising that took effect in 2008.

PASADENA COMMUNITY ACCESS CORPORATION

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(19)
NOTE 6 OTHER PROVISIONS OF REVENUE AND CONTRACTS (CONTINUED) A. Franchise Fees (Continued)
The City now receives 5% of the state franchise holders' gross revenues derived from the provision of video service pursuant to California Public Utilities Code Section 5840.

The franchise fee is co nsidered General Fund revenue for the City and, although the City continues to fund the Corporation at approximately 75% of the franchise fee revenue, the funding amount is at the discretion of the Pasadena City Council.

B. Management and Operating Agreement
On February 10, 2015, the Corporation entered into an agreement with the City to provide operation and day-to-day management of the local PEG access system, fo r a period of 25 years, commencing as of the date of the Agreement, and ending July 1, 2040.

C. 1% Public, Education, and Government (PEG) Allocation Pursuant to Pasadena Municipal Code 18.04.060, it was established that a fee would be paid to the City for the support of public, educational, and governmental access facilities and activities within the City. The Pasadena Municipal Code states that this fee shall be 1% of a cable provider's gross revenues, as defined in California Public Utilities Code Section 5860.

The Corporation serves as a receiving, holding, and disbursing entity for monies intended to promote noncommercial uses of the cable telecommunication medium.

These funds are allocated as grant revenue solely for PEG related purposes. See Note 7 for further details related to these funds.

D. Other Contracts
The Corporation earns additional service contract revenue by providing various production services to Los Angeles County for Altadena Town Council Meetings.

NOTE 7 PEG FUNDING FROM CITY OF PASADENA
As described in Note 6, the Corporation received $143,220 of PEG funding from the City of Pasadena during the year ended June 30, 2022. Unspent PEG funding is classified as restricted cash and net position has been restricted to the extent that no related expenses have been incurred on the statement of net position.

The changes in restricted cash (unspent PEG funding) for the year ended June 30, 2022 were as follows:

Beginning Restricted Cash 331,654$
PEG Revenue Received 143,220
PEG Disbursements for Capital Grants/ Equipment -
PEG Subtotal 143,220
Ending Restricted Cash 474,874$

PASADENA COMMUNITY ACCESS CORPORATION

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(20)
NOTE 8 CONCENTRATIONS OF REVENUE
For the year ended June 30, 2022, revenues derived from the City of Pasadena from the management and operating agreement described in Note 6B and the 1% PEG Allocation described in Note 6C accounted for 94% of the Corporation’s total revenue.

NOTE 9 COMPENSATED ABSENCES
Changes in compensated absences as of June 30, 2022 were as follows:

Amount Amount Due
Balance Balance Due Within in More than
July 1, 2021 Incurred Satisfied June 30, 2022 One Year One Year 33,819$ 32,243$ (35,803)$ 30,259$ 30,259$ -$
NOTE 10 RISK MANAGEMENT
The Corporation is covered under Special Liability, Property and Participant Accident policies through Nonprofits Insurance Alliance of California (NIAC). Liability and Participant Accident claims are insured for up to $1,000,000 per occurrence for any amount over the Corporation’s deductible amount of $1,000. Property claims are insured for up to $25,000,000 per occurrence for any amount over the Corporation’s deductible amount of $1,000. Workers’ compensation claims are covered under a purchased policy through Hartford Accident and Indemnity Company for claims up to $1,000,000 for each occurrence for any amount over the Corporation’s deductible amount of $1,000. Settled claims have not exceeded any of the Corporation’s coverage amounts in any of the last three fiscal years.

NOTE 11 INCOME TAXES
The Corporation is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and applicable state law. The Corporation files Form 990 in the U.S. federal jurisdiction and Form 199 in the state of California.

NOTE 12 RELATED PARTY TRANSACTIONS
As part of the management and operating agreement discussed in Note 6B, the City bills the Corporation for services rendered on the Corporation’s behalf. Services provided to the Corporation for the year ended June 30, 2022 was $20,000. The Corporation did not have an amount payable to the City as of June 30, 2022.

NOTE 13 RESTATEMENT OF NET POSITION
The Corporation restated beginning net position by $331,654 for PEG funding (see Note 7) that was previously reported as unearned revenue but should have been recognized as revenue.

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INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH
Board of Directors
Pasadena Community Access Corporation
Pasadena, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the Pasadena Community Access Corporation (the Corporation), a component unit of the City of Pasadena, California, as of and for the year ended June 30, 2022 and the related notes to the basic financial statements, which collectively comprise the Corporation’s basic financial statements, and have issued our report thereon dated March 7, 2023
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Corporation’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Corporation’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Corporation’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified a certain deficiency in internal control, described in the accompanying schedule of findings and responses as item 2022-001, that we consider to be a material weakness.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer .

CliftonLarsonAllen LLP
CLAconnect.com

Board of Directors
Pasadena Community Access Corporation
(22)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Corporation’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Corporation’s Response to the Finding
Government Auditing Standards requires the auditor to perform limited procedures on the Corporation’s response to the finding identified in our audit and described in the accompanying schedule of findings and responses. The Corporation’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Corporation’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Corporation’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
March 7, 2023