Finance Committee
April 24, 2023

PASADENA COMMUNITY ACCESS CORPORATION

SCHEDULE OF FINDINGS AND RESPONSES
JUNE 30, 2022
(23)
2022-001 – PEG Grant Funding
Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: Upon receipt of PEG grant funding from the City of Pasadena, the Corporation had been recording the amounts as unearned revenue and would recognize the revenue as eligible capital- related costs were incurred.

Criteria or specific requirement: In accordance with accounting guidance for nonexchange transactions pursuant to GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions , the receipt of this revenue source is considered to be a voluntary nonexchange transaction, and as such, should have been recognized as revenue since all eligibility requirements were met. The purpose restriction that the PEG grant funding be used for capital-related costs only affects the classification of net position; not the revenue recognition.

Effect: Beginning net position was restated for amounts received in prior years of $331,654 that should have been reported as revenue. Additionally, the current year funding received of $143,220 was adjusted to be properly reported as revenue.

Cause: The Corporation’s revenue recognition of PEG grant funding was based on the form of the agreement with the City rather than the underlying substance of the transactions.

Repeat Finding: This is not a repeat finding.

Recommendation: We recommend that the Corporation update their controls over cash receipts to ensure that PEG grant funding is properly recorded as revenue upon receipt.

Views of responsible officials and planned corrective actions: We are in concurrence with the finding and will implement the auditors’ recommendation.

~
Board of Directors
Pasadena Community Access Corporation
Pasadena , California
CliftonlarsonAllen LLP
CLAconnect.com
We have audited the financial statements of the Pasadena Community Access Corporation as of and for the year ended June 30, 2022 , and have issued our report thereon dated March 7, 2023. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of Amer ica and Government Auditing Standards , as well as certain informat ion related to the planned scope and timing of our audit in our statement of work dated Octobe r 21 , 2022. Professional standards also require that we communicate to you the following information related to our audit.

Significant audit findings or issues
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies . The significant account ing policies used by Pasadena Community Access Corporation are described in Note 1 to the financial statements .

As described in Note 1 D, the Corporation changed accounting policies related to leases by adopting Governmental Account ing Standards Board (GASB) Statement No. 87, Leases, effective July 1, 2021.

Accordingly , the accounting change has been applied to the beginning of the period of adoption .

We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus . All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management' s knowledge and experience about past and current events and assumptions about future events . Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected . There were no accounting estimates affecting the financial statements which were particularly sensitive or required substantial judgments by management.

Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users . There were no particularly sensit ive financial statement disclosures .

The financial statement disclosures are neutral , consistent , and clear .

CLA (CliftonlarsonAlle n LLP) is an independent network membe r of CLA Global. See CLAglobal.com/disclai mer.

Board of Directors
Pasadena Community Access Corporation

Difficulties encountered in performing the audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Uncorrected misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial , and communicate them to the appropriate level of management.

Management did not identify and we did not notify them of any uncorrected financial statement misstatements.

Corrected misstatements
The following material misstatement detected as a result of audit procedures was corrected by management:

The recognition of $331,654 of unearned revenue related to PEG grant funding as revenue that should have been recognized in previous years and the recognition of current year PEG grant funding of $143,220 as revenue.

Disagreements with management
For purposes of this communication , a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. No such disagreements arose during our audit.

Circumstances that affect the form and content of the auditors' report As previously communicated to you, the report was modified to include an emphasis of a matter to direct readers to Note 1 D to the financial statements regarding adoption of new account guidance, Statement of Governmental Accounting Standards Board (GASB Statement) No. 87, Leases.

Our report was also modified to include an emphasis of matter to direct readers to Note 13 to the financial statements regarding the restatement of the beginning net position for PEG funding that should have been recognized as revenue in previous years.

Management representations
We have requested certain representations from management that are included in the management representation letter dated March 7, 2023.

Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters , similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the entity's financial statements or a determination of the type of auditors' opinion that may be expressed on those statements , our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants .

Board of Directors
Pasadena Community Access Corporation

Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards , with management each year prior to engagement as the entity's auditors. However , these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement.

Required supplementary information
With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management 's responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI. * * *
This communication is intended solely for the information and use of the board of directors and management of Pasadena Community Access Corporation and is not intended to be, and should not be, used by anyone other than these specified parties .

CliftonLarsonAllen LLP
Irvine, California
March 7, 2023

PASADENA FIRE & POLICE RETIREMENT SYSTEM

A PENSION TRUST FUND OF THE CITY OF

PASADENA, CALIFORNIA
INDEPENDENT AUDITOR’S REPORT AND

BASIC FINANCIAL STATEMENTS

WITH REQUIRED SUPPLEMENTARY INFORMATION AND

OTHER SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2022
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2021)

P A S A D E N A
FIRE &
POLICE

RETIREMENT

S Y S T E M
Attachment F

PASADENA FIRE & POLICE RETIREMENT SYSTEM
FOR THE YEAR ENDED JUNE 30, 2022
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2021)

TABLE OF CONTENTS
Pag e
Inde
pendent Auditor’s Report ............................................................................................................ 1 Managem
ent’s Discussion and Analysis (Unaudited) ........................................................................ 5 BASI
C FINANCIAL STATEMENTS:

St
atement of Fiduciary Net Position ............................................................................................... 12 St
atement of Changes in Fiduciary Net Position ............................................................................ 13 Not
es to Basic Financial Statements .............................................................................................. 14 REQ
UIRED SUPPLEMENTARY INFORMATION (Unaudited):

Sc
hedule of Changes in Employer’s Net Pension Liability/(Asset) ................................................ 36 Sc
hedule of Employer’s Net Pension Liability/(Asset) and Related Ratios .................................... 37 Sc
hedule of Employer Contributions .............................................................................................. 38 Sc
hedule of Investment Returns ..................................................................................................... 39 Not
es to Required Supplementary Information .............................................................................. 40 OT
HER SUPPLEMENTARY INFORMATION:

Add
itions by Source and Deductions by Type ................................................................................ 46 OT
HER INFORMATION:

Comparative Information from Prior Fiscal Years: Interest Rate Risk (Unaudited) ........................ 48

www.mgocpa.com
Macias Gini & O’Connell LLP
700 South Flower St., Suite 800
Los Angeles, CA 90017

1 Independent Auditor’s Report
To t
he Board of Retirement
Pasadena Fire & Police Retirement System
Pasadena, California
Re
port on the Audit of the Financial Statements
Op
inion
We
have audited the financial statements of the Pasadena Fire & Police Retirement System (System), a pension trust fund 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 System’s basic financial statements as listed in the table of contents.

In our
opinion, the accompanying financial statements referred to above present fairly, in all material respects, the fiduciary net position of the System as of June 30, 2022, and the changes in fiduciary net position for the year then ended in accordance with accounting principles generally accepted in the United States of America
Ba
sis 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 Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the System and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe t hat the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Oth
er Matter
Pri
or-Year Comparative Information
The f
inancial statements include partial prior-year comparative information. Such information does include all of the information required to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the System’s financial statements for the year ended June 30, 2021, from which such partial information was derived.

We
have previously audited the System’s 2021 financial statements, and we expressed an unmodified audit opinion on the financial statements in our report dated October 28, 2021. In our opinion, the partial comparative information presented herein as of and for the year ended June 30, 2021, is consistent, in all material respects, with the audited financial statements from which it was derived.

2 Responsibilities of Management for the Financial Statements The S
ystem’s 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 System ’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 .

Au
ditor’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 auditor’s 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 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 per
forming an audit in accordance with GAAS and Government Auditing Standards, we:
• Ex
ercise 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 System’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 System ’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.

Re
quired Supplementary Information
Ac
counting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of changes in employer’s net pension liability /(asset), schedule of employer’s net pension liability/(asset) and related ratios, schedule of employer contributions, schedule of investment returns, and notes to required supplementary information be presented to supplement the basic financial statements. Such information is the responsibility of management and, al though 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

3 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.

Su
pplementary Information
Our
audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the System’s basic financial statements. The schedule of additions by source and deductions by type is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of additions by source and deductions by type is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Oth
er Information
Managem
ent is responsible for the other information included in the annual report. The other information comprises the comparative information from prior fiscal years: interest rate risk but does not include the basic financial statements and our auditor’s report thereon. Our opinion on the basic financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon.

In c
onnection with our audit of the basic financial statements, our res ponsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work perfor med, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Oth
er Reporting Required by Government Auditing Standards
In ac
cordance with Government Auditing Standards , we have also issued our report dated October 17, 2022 on our consideration of the System’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 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 System ’s internal control over financial reporting and compliance.

Los A
ngeles, California
October 17, 2022

4 This page is left blank intentionally.

Pasadena Fire & Police Retirement System
Management’s Discussion and Analysis (MD&A)
(Unaudited)

The Pasadena Fire & Police Retirement System (“System” or “Plan”) is a closed, single-employer defined benefit pension plan governed by a Board of Retirement (“Board”) under the provisions of the City of Pasadena (“City”) Charter that provides retirement, disability, and survivor benefits for eligible sworn safety employees of the City . Its operations are reported as a Pension Trust Fund in the City’s basic financial statements. The System was established on July 1, 1935 by a vote of the people to formalize retirement benefits for the City’s Fire and Police members, and is governed by the authority in Article XV of the City Charter, and by Chapter 2.250 of the City’s Municipal Code.

The System serves the City’s sworn employees hired prior to July 1, 1977, except those who elected to transfer to the California Public Employees ’ Retirement System (“CalPERS”) either when the System was closed to new members, or in June 2004. The System is governed by a Board of five members; one member of the City Council, two Pasadena residents appointed by the City Council, and two members of the System elected under the supervision of the System. Board members are elected to terms of four years with no restriction on reappointment. Board members receive no compensation.

The discussion and analysis of the System’s financial performance provides an overview of the financial activities for the fiscal year ended June 30, 2022. This discussion and analysis should be read in conjunction with and is qualified in its entirety by the accompanying audited financial statements and notes, which begin following this Management’s Discussion and Analysis. The financial statements, notes, and this discussion and analysis were prepared by management and are the responsibility of management.

Financial and Valuation Highlights

The Plan ended fiscal year 2022 with $111,661,738 in fiduciary net position compared to $134,732,586 in fiduciary net position as of June 30, 202 1. The decrease in net position by $23,070,848 from the prior period was attributed to investment losses and benefits paid to participants. Earnings in the portfolio were -8.6% net of fees, calculated on a money-weighted rate of return basis, (compared to 19.0% net of fees for the prior fiscal year), and resulted in $ 10,655,776 in net investment losses. Investment losses were accompanied by $12,415,072 in deductions from the portfolio for benefits and administrative expenses .

Investment losses of -8.6% (net of fees) were higher than overall market conditions and the portfolio’s benchmark earnings rate of -8.3%.

A cash reserve within pooled cash at the City was maintained to meet the required monthly cost of benefits and administration. Rebalancing of investments serves as an ongoing process to maintain balance with the Board’s asset allocation goals, and when necessary, to fund the Plan’s benefit and administrative costs.

During fiscal year 202 2, a total of $1 3,525,000 was withdrawn from the portfolio with the custodian and transferred to the City’s pooled cash account for payment of pension benefits and administration.

The June 30, 2022 actuarial valuation determined that the Actuarial Value of Assets (“AVA”) decreased to $115 million, and the Actuarial Accrued Liability (“AAL”) decreased to $131 million. Accordingly, the AVA Funded Percentage (which is the actuarially determined funding level used to calculate the City’s required minimum contribution) de creased to 87.8% at June 30, 202 2. The minimum required AVA Funded Percentage on June 30, 2022 is 80.0%. Thus, there is no required contribution from the City for fiscal year 2023 (due January 1, 20 23) based on the June 30, 2022 actuarial valuation and Amended and Restated Contribution Agreement No. 20,823 (“Agreement No. 20,823”).

The City’s Net Pension Liability/(Asset) (“NPL”) for the Plan increased from ($7,881,000) on June 30, 2021 to $14,629,000 on June 30, 2022 primarily due to decreases in the Plan's Fiduciary Net Position ("FNP").

The FNP decreased by more than $23 million primarily due to increased investment losses. As a result, the Plan’s FNP as a percentage of the Total Pension Liability (“TPL”) decreased from 106.2% at June 30, 2021 to 88.4% at June 30, 2022.

Pasadena Fire & Police Retirement System
Management’s Discussion and Analysis (MD&A) (Continued) (Unaudited)

Investment Performance
The Board reviews the asset allocation in the Investment Policy Statement ( “IPS”) on an annual basis, including a 10-year return forecast (both geometric and arithmetic) analysis by asset class. The forecasts per asset class are discussed within the context of their individual standard deviation forecasts, the amount of risk each asset assumes for the forecasted returns, and the relationship of that asset/risk within the overall portfolio. Portfolio mix options are discussed given the expected returns in comparison to the current allocations, and the investment advisor provides recommendations to the Board regarding potential changes in the asset allocation mix and for prospective new managers. In addition, fund and asset benchmarks are added and/or changed in the IPS to more accurately evaluate the portfolio and each asset’s performance or when a new asset is acquired.

The
System’s IPS has evolved since the hiring of investment advisor, Verus Investments, in 2011. The June 2011 policy revision adjusted the strategic allocation ranges for equities and fixed income, added allocations to Treasury Inflation Protected Securities (“TIPS”) and Real Estate, and deleted the allocation to Real Estate Investment Trust ( “REIT”). In June 2013, the policy was revised to add an allocation for Liquid Alternative Investments through adjusting the strategic allocation ranges in equities. The IPS was revised in May 2014 to create a new fixed income asset class for Senior Bank Loans towards the goal of reducing risk. The IPS was revised in February 2015 to eliminate the allocation to Cash, and to move the assets held in Small/Mid Cap Domestic Equities to Small Cap Domestic Equities. Following the 10 -year performance assessment in March 2016, the Board reallocated 2.0% from Domestic Core Equities (decreasing the allocation from 22.0% to 20.0%) to Domestic Core Fixed Income (increasing the allocation from 33.0% to 35.0%) through adoption of the revised IPS on April 20, 2016. During the fiscal year ended June 30, 2017, the IPS was further revised to add a new asset class for Index -Linked Investment-Grade Government Bonds to further prepare for and protect the portfolio from expected inflation.

Fiduciary Net Position and Total Pension Liability
Funds are accumulated to meet future obligations in the net position restricted for members’ pension benefits in the Statement of Fiduciary Net Position. TPL is not reported in the basic financial statements, but is disclosed in Note 5 to the basic financial statements and in the required supplementary information.

The TPL is determined by the actuary and is a measure of the present value of actuarial accrued liabilities estimated to be payable in the future to current retirees and beneficiaries. The NPL is measured as the TPL less the amount of the pension plan’s FNP. The System has engaged Bartel Associates , LLC since July 2010 to serve as its independent actuary and to prepare the annual actuarial valuation. On July 1, 2022, Bartel Associates, LLC was acquired by Foster & Foster Consulting Actuaries, Inc. The most recent actuarial valuation was prepared as of June 30, 2022 , and incorporated the requirements to comply with Governmental Accounting Standards Board (“GASB”) Statement No. 67.

Actuarial Valuation and City Contributions
The System’s funding objective is to meet long- term benefit promises by maintaining a well- funded plan and obtaining optimum returns consistent with the assumptions of prudent risk.

Pasadena Fire & Police Retirement System
Management’s Discussion and Analysis (MD&A) (Continued) (Unaudited)

The J
une 30, 2022 funding actuarial valuation determined the AVA Funded Percentage, calculated in accordance with Agreement No. 20,823 and Contribution Agreement No. 16,900, to be 87.8% as compared to 92.1% in the prior year. The AVA Funded Percentage decreased by 6.02% under what was originally projected for 2022 in the June 30, 20 21 valuation (93.85%), and was primarily attributed to the following actuarial changes: 2.3% investment loss of $3,472,000 (investment return was lower than expected), COLA loss of $1,579,000 (COLA was higher than anticipated), demographic gains of $1,283,000 ( more deaths than actuarially estimated) , and benefit payments gain of $86,000 ( higher than anticipated). As required by Contribution Agreement No. 16,900, if the AVA Funded Percentage was below the mi nimum funding percentage of 80% for fiscal year 2022, the City would have been required to reimburse the System in the following fiscal year subject to certain reimbursement limits. Based on the June 30, 2022 funding actuarial valuation, the funding deficiency was $0, or 0.0%, below the funding requirement of 80%. A required supplemental contribution is not owed to the System for the fiscal year ending June 30, 2023.

For
funding purposes, the Plan had an approximate market value asset rate of return of - 8.5% net of investment and administrative expenses for the year ended June 30, 2022 , compared to 18.5% in the previous year. The assumed rate of return for actuarial purposes is 4.75%. The rate of return as estimated by the actuary is net of investment and administrative expenses, and is different than the long -term expected rate of return used to determine the discount rate in accordance with GASB Statement No. 67.

Financial Statement Overview
This discussion and analysis serves as an introduction to the System’s basic financial statements. These include the following three components:
• Statement of Fiduciary Net Position
• Statement of Changes in Fiduciary Net Position
• Notes to Basic Financial Statements
In
addition to the financial statements, this report also contains required supplementary information and other supplementary information that offers comparative data on prior years. 6/30/2022 6/30/2021
Fundi
ng Discount Rate 4.75% 5.25%
Actuarial Accrued Liability (AAL) 131,139$ 131,926$ Actuarial Value of Assets (AVA) 115,181 121,488 AVA Unfunded Actuarial Accrued Liability 15,958 10,438
AVA Funded Percentage 87.8% 92.1%
Minimum Funding Percentage* 80.0% 80.0%
Contribution Due from the City at 1/1 -$ -$
Funding Valuation Summary
(In Thousands)
Fis cal Year Ended
Source is the June 30, 2022 actuarial valuation prepared by System Actuary, Foster & Foster and June 30, 2021 actuarial valuation prepared by System Actuary, Bartel Associ
ates.
* Minimum Funding Percentage is calculated in accordance with Agreements No. 20,
823 and No. 16,900 between the City and System.

Pasadena Fire & Police Retirement System
Management’s Discussion and Analysis (MD&A) (Continued) (Unaudited)

The Statement of Fiduciary Net Position provides a snapshot of account balances at year -end. It also indicates the assets available for future benefit payments and administration of the Plan as well as current liabilities outstanding at year -end. The assets less liabilities give the reader a clear picture of what funds are available for future payments.

The S
tatement of Changes in Fiduciary Net Position, in contrast, provides a summary view of the additions to and the deductions from the plan net position that occurred over the course of the year.

Toget
her these two statements report the System’s plan net position – the difference between assets and liabilities – as one way to measure the System’s financial situation. Over time, increases and decreases in plan net position are one indicator of whether the System’s financial situation is improving or deteriorating.

Additional factors, such as market conditions, also need to be considered in assessing the System’s overall financial situation.

The fi
nancial statements and required disclosures are in compliance with the accounting principles and reporting guidelines as set forth by the GASB, using the accrual basis of accounting. Investments are reported at fair value. Both realized and unrealized investment gains and losses are recognized using trade date accounting.

The
Notes to Basic Financial Statements (Notes) provide additional information and explanations that are essential to a full understanding of the data provided in the financial statements.

The R
equired Supplementary Information (RSI) that follows the Notes shows the City’s net pension liability/(asset), as well as information reflecting how much the City has contributed in relation to its annual required contributions and other information to comply with GASB Statement No. 67.

The O
ther Supplement ary Information (OSI) that follows the RSI provides additional comparative information from prior years.

GASB Statement No. 67
The System’s basic financial statements, notes to the basic financial statements, required supplementary information, and notes to the required supplementary information were prepared in accordance with the reporting requirements of GASB Statement No. 67. The most recent ac tuarial valuation as of June 30, 2022, was used to determine the total pension liability.

Net Pension Liability/(Asset) 6/30/2022 6/30/ 2021
Total Pension Liability 126,291$ 126,852$
Plan Fiduciary Net Position 111,662 134,733
Net Pension Liability/(Asset) 14,629$ (7,881)$ FNP as a % of TPL 88.4% 106.2%
Schedule of Net Pension Liability/(Asset)
(In Thousands)
Source for pension liability is the June 30, 2022 GASB 67 plan actuarial information prepared by System Actuary, Foster & Foster and June 30, 2021 GA
SBS 67 plan actuarial information prepared by System Actuary, Bartel Associates.

Fis cal Year Ended

Pasadena Fire & Police Retirement System
Management’s Discussion and Analysis (MD&A) (Continued) (Unaudited)

TPL for the Plan decreased from $126.9 million at June 30, 2021, to $126.3 million at June 30, 2022. The FNP at June 30, 2021 decreased from $134.7 million to $111.7 million at June 30, 2022. The changes in both TPL and FNP resulted in a significant net increase of NPL from -$7.9 million at June 30, 2021 to $14.6 million at June 30, 2022.

The
Notes to Basic Financial Statements provide additional disclosures to comply with GASB Statement No. 67 Implementation, as follows:
• Plan Membership,
• Investments (allocation by asset class, expected long- term rate of return by asset class, and the annual money-weighted rate of return),
• Investments greater than 5% of the Plan’s Fiduciary Net Position, • Net Pension Liability/(Asset) (and the components of Net Pension Liability/(Asset)), and • Significant actuarial assumptions used to measure Total Pension Liability.

The i
nformation reported in the Required Supplementary Information (RSI) section is required to be reported for 10 years; additional years will be reported as they become available :
• Schedule of Changes in Employer’s Net Pension Liability/(Asset), • Schedule of Employer’s Net Pension Liability/(Asset) and Related Ratios, • Schedule of Employer Contributions,
• Schedule of Investment Returns, and
• Notes to the Required Supplementary Information, which includes additional information regarding total pension liability.

The
Other Supplementary Information section includes the following two schedules:
• Additions by Source and Deductions by Type, and
• Comparative Information from Prior Fiscal Years for Interest Rate Risk .

Condensed Statement of Fiduciary Net Position
As of
June 30, 2022 and 2021 , the System had $111,661,738 and $134,732,586, respectively, in net position. The net position represents funds restricted for members’ pension benefits. The net pension liability is not reported in the basic financial statements, but is disclosed in the Notes and in the RSI. 2022 2021 $ C hange % Change
Current Assets 6,296$ 13,260$ (6,964)$ -52.5% Investments 113,657 135,540 (21,883) -16.1%
Total Assets 119,953 148,800 (28,847) -19.4%
Total Liabilities 8,291 14,067 (5,776) -41.1% Net Position Restricted for Pensions 111,662$ 134,733$ (23,071)$ -17.1% June 30,
(In Thousands)
Condensed Statement of Fiduciary Net Position

Pasadena Fire & Police Retirement System
Management’s Discussion and Analysis (MD&A) (Continued) (Unaudited)

Condensed Statement of Changes in Fiduciary Net Position

During the year ended June 30, 2022, the Plan’s net position decreased by $23,070,848. Earnings for the year in the portfolio were -8.6% net of fees, compared to 19.0% net of fees in the prior year.

Earnings for the year by asset class were as follows: International Equity ( -19.4% net of fees), Domestic Equity (-13.0% net of fees), Real Estate (25.9% net of fees) Alternatives (-15.7% net of fees), and Domestic Fixed Income (-8.2% net of fees on 44.1% of the total portfolio). There was a decrease of $33,111,125 in investment earnings from 2021. This is reflective of the dramatic decline in equity performance this year compared to the prior year with -19.4% in 2022 vs. 40.5% in 2021 for International Equities and -13.1% in 2022 vs. 44.8% in 2021 for Domestic Equities. Real estate improved from 6.7% in 2021 to 25.9% in 2022.

Deductions from plan net position consisted of benefits payments to beneficiaries and the plan’s administration costs. Total deductions were $12,415,072 and $12,832,514 in fiscal year 202 2 and 2021, respectively. Total deductions for the year ended June 30, 2022, reflect a decrease of $417,442 compared to the prior year due to decreasing membership.

Fiduciary Responsibilities

The System is a fiduciary for the public safety pension plan of the City of Pasadena. Accordingly, the System is responsible for ensuring that the assets reported in the statements are used for the intended purpose of paying expenses and providing retirement benefits to retirees and beneficiaries of the System.

2022 2021 $ Change % Change
Employer Contributions -$ -$ -$ n/a Net Investment Earnings (Losses) (10,656) 22,354 (33,010) -147.7% Total Additions (Losses) (10,656) 22,354 (33,010) -147.7% Benefit Payments 12,072 12,506 (434) -3.5% Administrative Expenses 343 327 16 4.9% Total Deductions 12,415 12,833 (418) -3.3% Net Increase (Decrease) (23,071) 9,521 (32,592) 342.3% Net Position Restricted for Pensions
Beginning of Year 134,733 125,212 9,521 -7.6% End of Year 111,662$ 134,733$ (23,071) 17.1% (In Thousands)
Condensed Statement of Changes in Fiduciary Net Position Year Ended June 30,

The notes to the basic financial statements are an integral part of this statement.

PASADENA FIRE & POLICE RETIREMENT SYSTEM

STATEMENT OF FIDUCIARY NET POSITION
JUN
E 30, 2022
(WITH COMPARATIVE TOTALS FOR JUNE 30, 2021)
2022 2021
Asse ts
Cash and cash equivalents 2,769,310$ 2,178,627$ Short-term investments 608,561 4,124,710
Receivables:

Pending trade sales 2,634,599 6,786,349
Interest 283,993 169,918
Total receivables 2,918,592 6,956,267
Investments, at fair value:

Government and agencies 19,255,353 24,232,920
Fixed income mutual funds 15,676,777 20,169,940
Domestic corporate obligations 21,541,729 23,274,707
International corporate obligations 1,428,993 1,587,182 Real estate 15,029,667 11,931,126
Equity - Domestic 20,377,674 27,382,351
Equity - International 20,346,394 26,962,063
Total investments 113,656,587 135,540,289
Total assets 119,953,050 148,799,893
Liabilities
Accounts payable and accrued liabilities 60,343 61,286
Pending trade purchases 8,230,969 14,006,021
Total liabilities 8,291,312 14,067,307
Net position restricted for pensions 111,661,738$ 134,732,586$

The notes to the basic financial statements are an integral part of this statement.

PASADENA FIRE & POLICE RETIREMENT SYSTEM

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FOR THE YEAR ENDED JUNE 30, 2022
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2021)

2022 2021
Additions:

Contributions:

Employer -$ -$
Net investment earnings (loss):

Interest 654,560 603,309
Dividends 1,786,426 1,363,394
Net increase (decrease) in fair value of investments (12,759,021) 20,826,387 Total investment earnings (loss) (10,318,035) 22,793,090 Less investment expenses (337,741) (439,243)
Net investment earnings (loss) (10,655,776) 22,353,847 Total additions (10,655,776) 22,353,847
Deductions:

Benefits paid to participants 12,072,173 12,505,972 Administrative expenses 342,899 326,542
Total deductions 12,415,072 12,832,514
Net increase (decrease) in net position (23,070,848) 9,521,333 Net position restricted for pensions:

Beginning of year 134,732,586 125,211,253
End of year 111,661,738$ 134,732,586$

PASADENA FIRE & POLICE RETIREMENT SYSTEM

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 – PENSION PLAN DESCRIPTION
General
The Pasadena Fire & Police Retirement System (“System”) is a single-employer defined benefit pension plan governed by a Board of Retirement (“Board”) under provisions of the City of Pasadena (“City”) Charter.

The Board has sole and exclusive responsibility over the assets of the System and the responsibility to administer the System to assure prompt delivery of benefits and related services as provided in Article XV of the City Charter.

The S
ystem is governed by a Board of five members; one member of the City Council, two Pasadena residents appointed by the City Council, and two members of the System elected under the supervision of the System. Board members are elected to terms of four years with no restriction on reappointment. Board members receive no compensation. The Board consists of five members, whom on June 30, 2022, were as follows:

Kei
th Jones, Chair
Peter Boyle, Vice Chair
John H. Brinsley, Board Member
Gene Masuda, Board Member
Joe Milligan, Board Member
The S
ystem covers all sworn fire and police personnel who were employed by the City prior to July 1, 1977, except for those who elected to transfer to the California Public Employees’ Retirement System (“CalPERS”) when the System closed to new members. In June 2004, active members were provided a one-time opportunity to transfer from the System to CalPERS as provided by an agreement with the City.

CalPERS administers the retirement benefits for all fire and police members that elected to be transferred to CalPERS.

The S
ystem is included as a pension trust fund in the financial statements of the City of Pasadena, California. The System provides basic lifetime retirement, disability , and death benefits to members who meet the minimum age and length-of-service requirements.

As
of June 30, 2022, System membership consisted of 193 retirees and beneficiaries who receive benefits including Domestic Relations Order (DRO) agreements. The average age was 80.4 years and the average monthly benefit was $5,306. Since June 30, 2021, the plan experienced 15 deaths: 9 deaths without a beneficiary for a net reduction of 9 participants. On June 30, 2022, total membership in the plan consisted of:
• 61 Ser
vice Retirees (average age 80.4, average monthly benefit $7,325) • 57 Disability Retirees (average age 79.8, average monthly benefit $5,447) • 75 Beneficiaries and DROs (average age 80.9, average monthly benefit $3,557) Ther
e are no longer any active employees participating in the System, and t he System is closed to new entrants. Benefit provisions are established and, subject to any constitutional limitations, may be amended by the City Charter.

Pension Plan Benefits
Members are entitled to annual pension benefits beginning at normal retirement age (50) equal to 1/50 of final compensation, times the member’s number of years of service, times an actuarial equivalent based on the actual retirement age. The System permits service retirement at age 50, provided at least 15 years of service have been rendered, or retirement after 25 years of service, regardless of age.

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022

NOTE 1 – PENSION PLAN DESCRIPTION (Continued)

Disability Benefits

Generally, active members who become totally disabled receive annual disability benefits that are equal to 50% of final compensation. Members who receive a service disability retirement receive a portion of their benefit tax-free (as determined by the percent disabled at retirement), and 100% lifetime continuance of all benefits to their surviving spouse. In contrast, members who receive a non- service disability retirement receive a 60% lifetime continuance of the benefits payable to their surviving spouse, and the member does not receive tax-free benefits.

Death Benefits

In the case of a death before a member is eligible to retire, there is a refund of the employee contributions, with interest, plus six months’ salary. If the member is eligible to retire, 60% of the earned benefit is payable to the eligible surviving spouse for their lifetime.

Survivor Benefits

Upon the death of a retiree, the qualified surviving spouse is entitled to receive retirement benefits equal to 60% continuance for a service retirement and 100% continuance for a service- connected disability retirement.

Cost of Living Adjustment (“COLA”)

Monthly pension benefits are eligible for an annual cost of living adjustment based on the increase/decrease of the annual average in the Consumer Price Index (“CPI”) for the Los Angeles-Riverside-Orange County, California area for the previous year, January to December, and the change is rounded to the nearest whole percentage. The adjustments are calculated by the actuary, adopted by the Board, and become effective on July 1 of each year. The COLA for fiscal year 2021 was an increase of 2%.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The System follows the accounting principles and reporting guidelines as set forth in Governmental Accounting Standards Board ( “GASB”) Statement No. 67, Financial Reporting for Pension Plans - an amendment of GASB Statement No. 25 . The financial statements are prepared and presented using the accrual basis of accounting. Employer contributions are recognized in the period in which the contributions are due pursuant to legal requirements . Benefits are recognized when currently due and payable , in accordance with the terms of the System.

Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Cash and Investments

The System’s cash and short-term investments are managed by the City Treasurer and U.S. Bank (master custodian for investment securities).

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Cash and Investments (Continued)

Cash necessary for the System’s daily operations is pooled with other City funds for short-term investment by the City Treasurer in the City’s Investment Pool (“Pool”). The City is responsible for the control and safekeeping of all instruments of title and for all investments in the Pool. The Pool is an internal investment pool and is not registered with the Securities and Exchange Commission. At June 30, 2022, the Pool had a weighted average maturity of 2.15 years. The Pool is not rated. For further information regarding the Pool, refer to the City's Annual Comprehensive Financial Report which can be found on the following website:
https://www.cityofpasadena.net/finance/financial-statements/#annual-comprehensive- financial-report.

Investment transactions are accounted for on the date the securities are purchased or sold (trade date).

Unsettled investment trades as of fiscal year -end are reported in the financial statements on an accrual basis. The corresponding proceeds due from sales are reported on the Statement of Fiduciary Net Position under receivables and labeled as pending trade sales, and amounts payable for purchases are reported under liabilities and labeled as pending trade purchases. Dividend income is recorded on ex-dividend date, and interest income is accrued as earned. The calculation of realized gains and losses is independent of the calculation of the net change in the fair value of System’s investments. Changes in fair value include both realized and unrealized gains and losses on investments.

The System has designated $1,250,000 in cash reserves to be invested by the City Treasurer in the P ool.

The funds equal one month of benefits and administrative expenses and are reserved for use in the event of a major emergency or disaster.

Income Taxes

The Internal Revenue Service (“IRS”) has ruled that plans such as the System qualify under Section 414(d) of the Internal Revenue Code (“IRC”) and are not subject to tax under present income tax laws. On May 11, 2012, the IRS issued a favorable Tax Determination Letter to the System. Working in conjunction with the City Attorney to fulfill the conditions of the favorable determination letter, the System revised the Pasadena Municipal Code and the changes became effective December 6, 2012. Accordingly, no provision for income taxes has been made in the accompanying basic financial statements, as the System is exempt from federal income and state franchise taxes under provisions of the IRC , Section 414(d), and the California Revenue and Taxation Code, Section 23701, respectively. As allowed, the System filed to renew its tax determination status on October 23, 2015. Upon completing an analysis of the p lan document relative to the current IRC, the IRS found that the plan is in compliance with the provisions of the IRC (no plan document failures exist). The System received a favorable determination letter on September 30, 2016.

Method Used to Value Investments

Investments are reported at fair value. Fair value for investments of publicly traded stocks and bonds and issues of the U.S. Government and its agencies is based on the last reported sale price as of the fiscal year-end. Fair value of securities denominated in a foreign currency reflects exchange rates in effect at fiscal year-end. Fair value of investments in commingled funds in real estate is based on the fund share price provided by the fund manager, which is based on the net asset value “NAV”).

Fair value of investments in commingled funds in bank loans is the fund share price provided by the fund manager, which is based on the market value of the fund. Valuation for PanAgora’s Risk Parity Multi Asset Group Trust is the fund itself, which is reported at NAV and provided by Mellon Global Securities Services under contract to provide these valuation services twice monthly and more frequently, if requested. The real property asset manager (Invesco) has 100% of the properties appraised on a quarterly basis by independent third-party appraisers.

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Method Used to Value Investments (Continued)

Use of discounted cash flow models and comparable sales analysis are the primary means of valuing real estate assets with the preponderance of weight given to the discounted cash flow method. Additionally, all valuations are consistent with Uniform Standards of Professional Appraisal Practice (USPAP), the Appraisal Standards Board and the Appraisal Foundation.

Comparative Data

The basic financial statements, including the notes thereto, include certain prior year summarized comparative information in total but not at the level of detail required for a presentation in conformity with accounting principles generally accepted in the United States. Accordingly, such information should be read in conjunction with the System's basic financial statements for the year ended June 30, 2021, from which the summarized information was derived.

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022
NOTE 3 – CASH AND INVESTMENTS
Cash and Investments
Cash and investments on June 30, 2022, were held as follows:

Authorized Investments
The City Charter, Article XV Section 1502, confers the authority and fiduciary responsibility for investing the System’s funds on the Board. As set forth below, Board members are subject to carry out their duties in the manner of a prudent person familiar with such retirement and investment matters acting under similar circumstances. Investments shall be subject to the same terms, limitations, and restrictions as are imposed by the Constitution and laws of the State upon the investment of the CalPERS funds, as now enacted or hereafter amended.

The
Board is required by statute to use care, skill, prudence and diligence to diversify the investments of the System so as to minimize the risk of loss and to maximize the rate of return, unless under the circumstances it is clearly not prudent to do so. The Board also has the authority to establish an investment policy based on professional advice and counsel, and all ows for the delegation of investment authority to professional investment managers.

June 30, 2022
Unrestricted Pooled Cash 971,372$
Designated Pooled Cash 1,250,000
Money Market Funds 547,938
Cash and Cash Equivalents 2,769,310
Short-term Investments 608,561
Investments 113,656,587
Total Investments 116,760,068
Total Cash and Investments 119,529,378$
Cash and Investments

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022

NOTE 3 – CASH AND INVESTMENTS (Continued)

Authorized Investments (Continued)

The System’s investment policy outlines the responsibility for the investment of the funds and the degree of risk deemed appropriate for the System’s investments. Investment managers are contractually required to carry out their responsibilities in accordance with the Board’s investment policy and to follow specific contractual guidelines.

The Board oversees and guides the System subject to the following basic fiduciary responsibilities:

• Solely in the interest of, and for the exclusive purpose of, providing economic benefits to participants and their beneficiaries.
• With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of a like character with like objectives.
• Diversify the investments of the System so as to minimize the risk of loss and to maximize the rate of return, unless under the circumstances, it is clearly prudent not to do so. Diversification is applicable to the deployment of the assets as a whole.

Pursuant to this authority, the Board has authorized investment in the following securities:

• Securities of the U.S. Government or its
agencies
• Certificates of Deposit, or Time
Deposits, placed with commercial
banks and savings and loan
associations
• Negotiable Certificates of Deposit
• Bankers’ Acceptances
• Commercial Paper (rated A -1/P-1 or
better)
• Medium-Term Corporate Notes
• Corporate and Municipal Bonds

• Preferred Stock
• Common Stock
• Fixed-Income Funds
• Senior Bank Loans
• Foreign Stock and Corporate Bonds
• Mutual Funds
• Liquid Alternative Investments
• Real Estate Investment Trust (“REIT”)
• Real Estate
• Treasury Inflation Protected Securities
• Short-Term Investment-Grade Bonds

The Board established an Investment Policy Statement (“IPS”) in accordance with applicable local, state, and federal laws. The Board exercises authority and control over the management of the System’s assets by setting policy which the Board executes through the use of external prudent experts. During the fiscal year ended June 30, 2021, the alternative investment was changed from PIMCO All Asset Institutional to PanAgora Risk Parity Fund in November 2020. The I PS was revised to reflect the latest changes to the asset allocation which were approved by the Board.

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022

NOTE 3 – CASH AND INVESTMENTS (Continued)

Authorized Investments (Continued)

The IPS encompasses the following asset classes and asset allocation targets:

The System requires approximately $1,250,000 per month to cover benefit payments and administrative costs. On a quarterly basis, the Board and the investment consultant evaluate the assets against their allocation targets and determine the appropriate asset class/classes from which to with draw for payment of benefits and administration. This process also serves as a regular rebalance process to ensure that the portfolio stays within the Board’s adopted allocation goals.

Fair Value and Fair Value Hierarchy of Investments

Investments are reported in the Statement of Fiduciary Net Position at fair value. The System categorizes its fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets. Level 2 inputs are quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model -derived from valuation techniques in which all significant inputs are observable. Level 3 inputs are significant unobservable inputs.

Target As s et
Allocation
Domestic Equity
Large Cap Value 4%
Large Cap Growth 4%
Large Cap Core 8%
Small Cap Core 4%
Total Domestic Equity 20%
Foreign Equity 20%
Real Estate 10%
Fixed Income
Domestic Core Fixed Income 25%
Short-Term Investment-Grade Bonds 10%
Senior Bank Loans 5%
Treasury Inflation Protected Securities (TIPS) 5%
Total Fixed Income 45%
Risk Parity 5%
Total Portfolio 100%
Asse t Cla ss
Inves tment Performance Statement
As s et Clas s es and Targets
As of June 30, 2022

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022
NOTE 3 – CASH AND INVESTMENTS (Continued)
Fair Value and Fair Value Hierarchy of Investments (Continued) The f
ollowing table presents a summary of the fair value hierarchy of the recurring fair value measurements of the System as of June 30, 2022:

Debt
and equity securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Debt securities classified in level 2 of the fair value hierarchy are valued using a matrix pricing technique or based on quoted prices that are not in active markets . Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices.

Quoted Prices in
Active Markets
for Identical
Assets
Significant Other
Observable
Inputs
Significant
Unobservable
Inputs
Net Asset
Value
Inves tments by fair value level June 30, 2022 (Level 1) (Level 2) (Level 3) (NAV) Debt Securities
U.S. Treasury Securities (Government Bonds) 9,368,917$ -$ 9,368,917$ -$ -$ U.S. Treasury Securities (Short-Term Investments) 608,561 - 608,561 - - Government Mortgage-Backed Securities 9,349,625 - 9,349,625 - - Commercial Mortgage-Backed Securities 1,473,008 - 1,473,008 - - Government Issued Commercial Mortgage-Backed Securities 269,799 - 269,799 - - Asset Backed Securities 1,360,598 - 1,360,598 - - Non-Government Backed CMOs 1,015,099 - 1,015,099 - - Corporate Bonds 7,994,259 - 7,994,259 - -
Municipal Bonds 267,012 - 267,012 - -
Mutual Funds Fixed Income 15,676,777 15,676,777 - - - Total Debt Securities 47,383,655 15,676,777 31,706,878 - - Equity Securities
Consumer Discretionary 443,921 443,921 - - - Consumer Staples 378,479 378,479 - - -
Financial Services 771,399 771,399 - - -
Health Care Services 294,935 294,935 - - -
Industrial Services 1,190,010 1,190,010 - - - Information Technology Services 1,044,136 1,044,136 - - - Materials 211,696 211,696 - - -
Mutual Funds Equity 36,389,492 36,389,492 - - - Total Equity Securities 40,724,068 40,724,068 - - - Investments Measured at NAV
Senior Secured Bank Loans 5,974,412 - - - 5,974,412 Risk Parity Group Trust 5,153,346 - - - 5,153,346 Real Estate Funds 15,029,667 - - - 15,029,667 Total Measured at NAV 26,157,425 - - - 26,157,425 Total Investments Measured at Fair Value 114,265,148$ 56,400,845$ 31,706,878$ -$ 26, 157,425$ Fair Value Meas urement Us ing

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022
NOTE 3 – CASH AND INVESTMENTS (Continued)
Fair Value and Fair Value Hierarchy of Investments (Continued) Real
estate funds include investment in the Invesco Core Real Estate – U.S.A Limited Partnership (“Fund”).

The fair value of the investment in this type have been determined using the NAV per share (or its equivalent) of the System’s ownership interest in partners’ capital. The System may request redemption of some or all of its interest by delivering a redemption notice at least 45 days in advance to the Fund.

Redem
ption requests are honored pro rata based on the ratio of the ownership interest held by each individual investor making a redemption request to the total ownership of interest held by all investors requesting redemptions.

The F
und will use best efforts to honor redemption requests as quickly as possible; however, capital availability wi ll dictate the ultimate redemption date and amount. The Fund’s portfolio manager is not required to liquidate, encumber assets, or defer investments in order to pay any redemption.

The S
ystem’s investment in the Senior Bank Loans Secured Subscription Agreement ( “Trust Fund”) is valued using the NAV per share (or its equivalent) of the System’s ownership interest in the Trust Fund.

The Trust Fund has imposed restrictions on the amount and timing of withdrawals . Withdrawals of participation shall be permitted only on a withdrawal date, which is 15 th of each month. A written notice of
withdrawal request is required to be provided to the Trust Fund no later than the 15th of the month preceding the requested withdrawal date. If withdrawal requests for any given withdrawal date exceed limitations set forth in the Trust Fund’s agreement, all such withdrawal requests shall be processed pro rata. Withdrawal amounts requested but not paid on any given withdrawal date will not be carried over to the following withdrawal date and a new withdrawal request must be timely submitted.

The S
ystem’s investment in the PanAgora Risk Parity Group Trust is also valued using the NAV per share (or its equivalent) of the System’s ownership interest in the Risk Parity Group Trust. PanAgora Risk Parity Group Trust redemptions are beginning and mid-month with a two-day notice.

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022
NOTE 3 – CASH AND INVESTMENTS (Continued)
Asset Allocation Policy and Expected Long-term Rate of Return by Asset Class The investments of the System are allocated by the IPS as approved by the Board and noted in the following table. The long- term geometric expected real rates of return are reported by asset class, and are based on CalPERS’ Capital Markets Assumptions studies.

Asset Class
Target Asset
Allocation
Expected
Geometric
Re
al Return*
Domestic Equity - Large Cap 16% 3.77%
D
omestic Equity - Small Cap 4% 4.45%
Foreign Equity 20% 4.41%
Domestic Core Fixed Income 25% 0.53%
TIPS 5% -0.24%
Short-Term Investment-Grade Bonds 10% 0.05%
Senior Bank Loans 5% 1.64%
Alternative (Risk Parity) 5% 3.38%
Real Estate 10% 3.81%
100%
Inflation 2.50%
Expected Long-Term Rates of Return
Source is the June 30, 2022 GASB 67 actuarial information prepared by System Actuary, Foster & Foster, Inc. The rate for Alternative (Risk Parity) is used for Liquid Al
ternative Investments.
* 10-year geometric expected real rates of return from Bartel Associates 2021 Capital M
arket Assumptions study.
6/30/2022

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022

NOTE 3 – CASH AND INVESTMENTS (Continued)

Rate of Return

For the year ended June 30, 2022, the annual money-weighted rate of return on the System’s investments, net of investment expenses, was -8.6%. The money -weighted rate of return expresses investment performance, net of investment expenses, adjusted for the changing amounts actually invested.

Deposit and Investment Risks

The System follows GASB Statement No. 40, Deposit and Investment Risk Dis closures – an amendment to GASB S tatement No. 3 (“GASB Statement No. 40”). GASB S tatement No. 40 is designed to inform financial statement users about deposit and investment risks that could affect the ability to provide services and meet obligations as they become due. The disclosures required by this statement provide information to assess common risks inherent in deposit and investment transactions.

Deposit and investment resources represent considerable assets of the System, and these resources are necessary to carry out fiduciary responsibilities. GASB Statement No. 40 requires the disclosure of the following specific risks that apply to the System’s investments:

• Credit Risk and Fair Value of Investments
• Custodial Credit Risk – Deposits and
Investments
• Concentration of Credit Risk

• Interest Rate Risk
• Highly Sensitive Investments
• Foreign Currency Risk

GASB Statement No. 40 also requires the disclosure of deposit or investment policies (or the lack thereof) that relate to the investment and custodial risks that are required to be disclosed. The Board has chosen to manage the investment risks described by GASB S tatement No. 40 by contractually requiring each portfolio investment manager to abide by the IPS, specifically tailored to that individual manager, rather than adopting across -the-board investment policies with respect to these investment risks. The fixed income policy stipulates the strategy and investments, investment process, quality constraints, duration constraints, diversification, cash reserves, derivatives, and rate of return expectation. At June 30, 2022 , the System had nine (9) external investment managers.

Credit Risk

Credit risk is the risk that the issuer of a debt security or other counterparty to an investment will not fulfill its obligations. The individual investment guidelines for the fixed income investment manager describe applicable restrictions on credit risk. The System seeks to maintain a diversified portfolio of fixed income instruments in order to obtain the highest total return for the fund at an acceptable level of risk within this asset class. The credit quality ratings of investments in fixed income securities by a nationally recognized statistical rating organization, S&P Global Ratings (“S&P”), as of June 30, 2022, are as follows:

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022
NOTE 3 – CASH AND INVESTMENTS (Continued)
Credit Risk (Continued)
Custodial Credit Risk – Deposits
Custodial credit risk for deposits is the risk that, in the event of a financial institution’s failure, the System will not be able to recover the value of deposits nor be able to recover collateral securities that are in the possession of an outside party. Deposits are exposed to custodial credit risk if they are not insured or not collateralized. As of June 30, 2022, the System was not exposed to such risk. The System does not have a formal policy for custodial credit risk.

Quality Ratings - S & P Fair Value Per centage
AAA 611,776$ 1.04%
AA 803,235 1.37%
A 2,373,043 4.06%
BBB 5,661,510 9.68%
BB 192,623 0.33%
B 116,793 0.20%
CCC 494,064 0.84%
Total Securities with S&P Ratings 10,253,044$ 17.52% Not Rated/Quality Rating N/A* 28,661,467$ 48.98%
Not Rated/U.S. Government Guaranteed Securities** 9,101,194 15.55% Not Rated/U.S. Government Bonds*** 10,495,708 17.94% Total Securities Not Rated/Quality Rating N/A 48,258,369$ 82.48% Total Fixed Income Securities 58,511,413$ 100.00%
** U.S. Government Guaranteed Securities are Government Mortgage-Backed Securities and Government-issued Commercial Mortgage-Backed Securities. These U.S. Government G
uaranteed Securities issued by Government Sponsored Enterprises (GSEs) are not rated by the rating agencies, but they are implicitly guaranteed by the U.S. Government. *** U.S. Government Bonds, more commonly disclosed as U.S. Treasury Bonds and Notes, are assets held in Treasury Bonds and Index Linked Government Bonds. These U.S. Government G
uaranteed Securities issued are not rated by the rating agencies, but they are explicitly guaranteed by the U.S. Government.

Credit Quality Ratings of Investments in Fixed Income Securities * Includes Corporate MBSs rated "N/A" totaling $1,345,993. This category also includes securities hel
d in the TIPS, Risk Parity, Senior Bank Loans, and Short-Term Investment-Grade Bonds asset cla
sses.

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022
NOTE 3 – CASH AND INVESTMENTS (Continued)
Custodial Credit Risk – Investments
Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the System will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The individual investment guidelines for each investment manager require that managed investments be held and maintained with the master custodian in the name of the System. Investment securities are exposed to custodial credit risk if the securities are uninsured, or are not registered in the System’s name, and held by the counterparty. The System’s investments are not exposed to custodial credit risk if they are insured or registered in the System’s name. The System’s investments are not exposed to custodial credit risk because all securities are held by the System’s custodial bank in the System’s name.

Concentration of Credit Risk – Investments
Conc
entration of credit risk is the risk of potential loss attributed to the magnitude of the System’s investment in a single issuer of securities. The Board’s investment policies and guidelines permit investments in numerous specified asset classes to take advantage of professional investment management advice and a well-diversified portfolio. The active core fixed income asset manager develops and applies diversification standards as deemed prudent, and is expected to maintain diversification by sector and issue. Allocations to any one issuer in fixed income ( excluding issues issued by or explicitly guaranteed by the U.S. government) should not exceed 5% of the total portfolio fair value.

As
of June 30, 2022, there were no organizations or issuers that represent 5% or more of the total investments or the fiduciary net position.

Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Duration is a measure of the price sensitivity of a fixed income portfolio to changes in interest rates. It uses the present values of cash flows, weighted for those cash flows as a percentage of the investment’s full price. The longer the duration of a portfolio, the greater its price sensitivity is to changes in interest rates.

While no specific ranges are required, one of the ways the System manages its exposure to interest rate risk is by requiring the fixed income investment manager to maintain its portfolio effective duration within +/- 20% of the benchmark, the Barclays Capital U.S. Aggregate Bond Index. See Other Information, page 46 for the Core Fixed Income asset manager’s historic effective duration. The effective duration is a measure, in years, of interest -rate sensitivity in debt investments. The longer the effective duration, the greater the sensitivity to interest rate changes.

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022

NOTE 3 – CASH AND INVESTMENTS (Continued)

Interest Rate Risk (Continued)

Information about the sensitivity of the fair values of the System’s investments to market interest rate fluctuations is provided in the table below that reports the average effective duration of the System’s fixed income investments by asset type as of June 30, 2022:

Asse t Type Fair Value
Effective
Weighted
D
uration
(years)
Government Bonds 9,977,478$ 5.51
Municipal Bonds 267,012 10.52
Corporate Bonds 7,994,259 11.33
Government Mortgage-Backed Securities 9,349,625 8.09 Government Issued Commercial Mortgage-Backed 269,799 10.94 Commercial Mortgage-Backed 1,473,008 3.86
Asset Backed Securities 1,360,598 0.14
Non-Government Backed CMOs 1,015,099 0.20
No Effective Duration:

Mutual Funds Fixed Income 15,676,777 N/A
Risk Parity Group Trust 5,153,346 N/A
Senior Bank Loans 5,974,412 N/A
Total Fixed Income 58,511,413$

As of June 30, 2022
Fixed Income
Effective Duration by Asset Type

Highly Sensitive Investments

Highly sensitive investments are certain debt investments whose terms may cause their fair value to be highly sensitive to market interest rate changes. Terms include such information as embedded options, coupon multipliers, benchmark indexes, and reset dates. The System’s asset backed investments have embedded prepayment options that will typically cause prepayments by the obligees of the underlying investments when interest rates fall. Prepayments eliminate the stream of future interest payments and, therefore, diminish the fair value of the asset -backed investment. The table on the following page reports the fair value of the System’s investments that are highly sensitive to changes in interest rates:

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022
NOTE 3 – CASH AND INVESTMENTS (Continued)
Highly Sensitive Investments (Continued)
Foreign Currency Risk
Foreign currency risk is the risk that changes in foreign exchange rates will adversely affect the fair value of an investment or deposit . The System’s authorized investment managers are permitted to invest in approved countries or regions, as stated in their respective investment guidelines. Currency hedging will be permitted as part of a defensive strategy to protect the portfolio’s underlying assets.

The System’s foreign investment holdings on June 30, 2022 has no foreign currency risk as the securiti es trade and settle in US Dollars as domestic trades.

Investment Type Fair Value
Government Mortgage-Backed Securities 9,349,625$
Government Issued Commercial Mortgage-Backed Securities 269,799 Asset Backed Securities 1,360,598
Commercial Mortgage-Backed Securities 1,473,008
Non-Government Backed Commercial Mortgage Obligations 1,015,099 Total Highly Sensitive Investments 13,468,129$
Highly Sensitive Investments
As of June 30, 2022

PAS

ADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022
NOTE 4 – CONTRIBUTION INFORMATION
Cont
ribution requirements are established by the City Charter and by contract, and, subject to any constitutional limitations, may be amended by the City Charter or further agreement between the City and the System.

General
Historically, the City has made monthly contributions to the System based on actuarially determined employer contribution rates which, together with employee contributions, were expected to provide sufficient assets to pay funded basic benefits when due. However, the City Charter did not require actuarially determined funding for unfunded basic, 1919 benefits, and COLA benefits, which are funded under Contribution Agreement No. 16,900, dated March 18, 1999, between the City and the System. Per the terms negotiated through their respective recognized Associations , employee contributions of 9% for both Fire and Police Department personnel base earnings were made by the City on behalf of the employees and credited to their individual accounts.

Member Contributions
As a condition of participation, members were required to contribute a percentage of their annual salary to the System. Currently there are no active members in the System, and hence no further member contributions are due to the System.

The
City Charter required members’ contributions to be credited to the individual account of the member from whose compensation the contribution was deducted. Such contributions accrued interest at a rate determined by the Board and were either to be refunded to members or their beneficiaries upon separation from City service for reasons other than retirement, or applied towards providing members’ retirement or death allowances. Amendments to the City Charter cannot prevent the refund of such contributions plus accrued interest. Because there were no active members, accumulated contributions for 2022 w ere $0 with no interest credited.

City Contributions
The System’s funding mechanism was updated on March 18, 1999, when the System entered into Contribution Agreement No. 16,900 (“Agreement No. 16,900”) with the City. As a result of this agreement, the City made a contribution of $100,000,000 to the System on August 5, 1999, and agreed to make supplemental contributions to the System when needed. Per Agreement No. 16,900, the System was considered to meet minimum funding requirements for the year ended June 30, 2001, if the funded percentage exceeded 70%. As per the agreement, the required minimum funded percentage increases by 1/2% each year until it reaches 80% in the year ended June 30, 2021. Thereafter it may, but need not, be changed by the System.

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022

NOTE 4 – CONTRIBUTION INFORMATION (Continued)

City Contributions (Continued)

On October 20, 2011, the Board approved Amended and Restated Agreement No. 20,823 ( “Agreement No. 20,823” ). Under this new agreement, the City’s minimum funding percentage schedule and reimbursement cap in Agreement No. 16,900 carried forward, and the City agreed to provide a contribution of $46,600,000 to the System through the issuance of pension obligation bonds. Agreement No. 20,823 provided that the annual required supplemental contribution would be actuarially calculated using an interest assumption of 6% and an inflation rate of 3% beginning with the June 30, 2012 valuation. Pursuant to this agreement, future annual valuations after June 30, 2012, shall adopt an assumed interest rate and inflation assumption based on analysis performed by the System’s actuary and after seeking input from the City and Syst em’s professional consultant. Agreements No. 16,900 and No. 20,823 state that if the minimum funding deficit is greater than $3,000,000 in a year, the City will pay $3,000,000 to the System. Any remaining amount necessary to reach the minimum funding percentage will be phased in over a five- year period; however, no annual supplemental payment may exceed a reimbursement cap measured by the prior year’s payments for benefits other than the funded basic benefits.

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

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022
NOTE 5 – NET PENSION LIABILITY
Net Pension Liability
The C
ity’s Net Pension Liability (“NPL”) at June 30, 2022, was $14,629,000. Fiduciary Net Position (“FNP”) as a percentage of total pension liability is 88.4%. At June 30, 2022, the components of the NPL were as follows:

Key Methods and Assumptions Used in Valuation of Total Pension Liability Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about mortality and cost trends. Actuarially determined amounts are subject to continual review or modification as actual results are compared with past expectations and new estimates are made about the future.

Pr
ojections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employers and plan members) and include the types of benefits provided at the time of each valuation. Following the recommendation provided by the System ’s Actuary on May 26, 2022, the Board later accepted the recommended assumptions for use in the preparation of the actuarial valuation for the year ended June 30, 2022.

Net Pension Liability 6/30/2022
Discount Rate 5.25%
Total Pension Liability (TPL)* 126,291$
F
iduciary Net Position (FNP) 111,662
Net Pension Liability (NPL) 14,629$
F
NP as a Percentage of TPL 88.4%
_______________________________________________________ *Source for the TPL is the June 30, 2022 GASBS 67 plan actuarial information report prepared by System Actuary, Foster & Foster, Inc. (In Thousands)
Net Pension Liability

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022
NOTE 5 – NET PENSION LIABILITY (Continued)
Key Methods and Assumptions Used in Valuation of Total Pension Liability (Continued) The
Total Pension Liability (“TPL”) was determined by the actuarial valuation performed as of June 30, 2022, using the following actuarial assumptions:

Valuation Date/Measurement Date June 30, 2022
Expected Geometric Real Rate of Return
Domestic Equity - Large Cap 3.77%
Domestic Equity - Small Cap 4.45%
Foreign Equity 4.41%
Domestic Core Fixed Income 0.53%
Senior Bank Loans 1.64%
Short-Term Investment Grade Bonds 0.05% TIPS -0.24%
R
isk Parity 3.38%
Real Estate 3.81%
N
umber of Participants Retirees & Beneficiaries* 193
Vested Terminations -
Activ es -
Total Participants 193
Actuarial Assumptions **Discount Rate: 5.25%
Salary Scale: No active employees
Inflation Rate: 2.50%
Mortality CalPERS 2000-2019 Experience Study,
Mortality Improvement Scale 80% Scale MP-2020
Key Methods and Assumptions Used in Valuation of
Total Pension Liability
Source is the June 30, 2022 GASBS 67 plan actuarial information prepared by System Actuary, Foster & Foster, Inc.
**Discount Rate reflects assumed investment expenses of 15 basis points. *Alternative payee data for 23 Domestic Relations Order agreements provided separately from employee- retiree for first time in 6/30/22 valuation. Benefits for these alternative payees previously included in t he corresponding retiree’s benefits. All DRO agreements provide benefits to the alternative payees for the lifetime of the System’s retiree.

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022
NOTE 5 – NET PENSION LIABILITY (Continued)
Discount Rate
The discount rate of 5.25% was selected by the System actuary and approved by the Board to measure the June 30, 2022 TPL for accounting purposes. The discount rate is the expected real long- term rate of return, plus the inflation assumption of 2.50%, less assumed investment expenses of 15 basis points. The expected long-term real rate of return is compared at the 50% and 55% confidence levels of capital market assumptions. Based on the assumptions, the System 's Fiduciary Net Position was projected to be available to make all projected future benefit payments. The discount rate used as of June 30, 2022 is lower than the discount rate of 5.75% used as of June 30, 2021.

Sensitivity of the NPL to Changes in the Discount Rate
Exam
ining the sensitivity of the NPL to changes in the discount rate by a 1% decrease, from 5.25% to

4.25%, revealed an increase in the NPL by $10,041,000 to a t otal NPL of $24,670,000. Conversely, increasing the discount rate by 1%, from 5.25 % to 6.25%, revealed a corresponding decrease in the NPL of $8,782,000 to total NPL of $5,847,000 as of June 30, 2022. 6/30/2022
Discount Rate 5.25%
Net
Pension Liability 14,629$
Discount Rate (-1%) 4.25%
Net Pension Liability 24,670
Net Increase in NPL 10,041
Discount Rate (+1%) 6.25%
Net Pension Liability 5,847
Net Decrease in NPL (8,782)
Sensitivity of Net Pension Liability (NPL) to
Changes in the Discount Rate
(In Thousands)
NOTE 6 – ADMINISTRATIVE COSTS
The cos
ts to administer the System are paid by the System. Administrative expenses were $342, 899 for the year ended June 30, 2022 . A dministrative expenses increased by a net amount of $16, 357 in fiscal year 2022 over the fiscal year 2021 amount of $326,542.

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
JUNE 30, 2022

NOTE 7 – CONCORD SENIOR HOUSING PROPERTY AGREEMENT

The City Council adopted Resolution No. 6179 at its July 18, 1989, meeting assigning a 93% beneficial interest in the Concord Senior Housing property at 275 E. Cordova, Pasadena (Concord Property), to the System, and 100% of the cash flow received by the City from the property for ground lease rent payments through 2031. The property was previously used for federally subsidized housing and was subject to federal restrictions on its use through August 2016. Resolution No. 6179 also declared the City’s formal intent to continue to utilize the property for federally subsidized housing through 2031.

The System’s Board reviewed and approved an amendment to Agreement No. 20,823 (Amended Agreement) at its meeting on February 20, 2019, which was later approved by City Council at its meeting on March 11, 2019. The amendment memorializes the accrued rent and interest owed to the City as of July 31, 2018, in the amount of $6,435,116. Further, the amendment assigns the System 100% of the past due amount and all future rents and income from operations through the term of the ground lease agreement, which expires on August 1, 2031, or until the City sells the Concord Property, whichever occurs first.

The s ale of the Concord P roperty closed on May 28, 2020. The total proceeds received by the System was $23,137,382 as of June 30, 2020, which are comprised of the ground lease due through May 27, 2020, of $3,180,180, accrued interest on ground lease rent of $3,950,613, and the System's 93% beneficial interest of $16,006,589. The total proceeds transferred to the System were reduced by the amount of the City’s mandatory contribution of $3,478,000 for a total remittance of $19,659,382., which was reported in fiscal year 2020.

At June 30, 2022, the City has an outstanding note receivable related to the sale in the amount of $18,350,000 of which $17,065,500 is expected to be contributed to the System upon receipt based on the System’s 93% beneficial interest in accordance with the Amended Agreement. Approximately $13,505,395 of the outstanding note receivable balance is to be paid upon completion of construction. The System’s portion of the second installment of Sale Proceeds will be due upon the Permanent Financing Closing date of the Concord P roperty, which entitles the System to receive from the City its 93% beneficial interest of approximately $12,560,017.

According to the Disposition, Development and Loan Agreement (DDLA), the Permanent Financing Closing date is scheduled to occur no later than March 31, 2022, but due to delays in obtaining an electrical permit the closing date has been extended to spring of 2023 . The remaining note receivable balance of $4,844,605 will be due 55 years after the project completion date and bears interest at a fixed rate of 2.5% per year. If and when there are payments received by the City, 93% of the payment will be remitted to the System as additional contributions for a total of $4,505,483.

REQUIRED SUPPLEMENTARY INFORMATION

P A S A D E N A
FIRE &
POLICE

RETIREMENT

S Y S T E M

PASADENA FIRE & POLICE RETIREMENT SYSTEM

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

SCHEDULE OF CHANGES IN EMPLOYER’S NET PENSION LIABILITY/(ASSET)

2022 2021 2020 2019 2018 2017 2016 2015 2014
Discount Rate 5.25% 5.75% 5.75% 5.75% 5.75% 6.50% 6.50% 6.50% 6.00% Total Pension Libility (TPL):

Service Cost -$ -$ -$ -$ -$ -$ -$ -$ -$ Interest 6,947 7,335 7,600 7,781 8,832 9,272 9,644 9,162 10,185 Benefit Payments (12,072) (12,506) (12,773) (12,824) (12,815) (13,118) (13,448) (13,645) (14,140) Experience Losses (Gains) 164 (1,799) 438 1,862 1,261 (3,081) (2,098) (3,075) (5,310) Assumption Changes* 4,400 - - - 2,189 - - 3,141 - Benefit Changes - - - - - - - - - Net Change (560) (6,969) (4,735) (3,181) (533) (6,927) (5,902) (4,417) (9,265) Total Pension Liability at Beginning of Year 126,852 133,821 138,556 141,737 142,270 149,197 155,099 159,516 168,781 Total Pension Liability at End of Year (a) 126,291$ 126,852$ 133,821$ 138,556$ 141,737$ 142,270$ 149,197$ 155,099$ 159,516$ 2022 2021 2020 2019 2018 2017 2016 2015 2014
Fiduciary Net Position:

Employer contributions -$ -$ 23,137$ -$ -$ -$ -$ -$ 1,164$ Member Contributions - - - - - - - - - Net Investment Income (10,656) 22,354 3,394 5,923 6,656 12,514 49 5,683 21,303 Benefit Payments (12,072) (12,506) (12,773) (12,824) (12,815) (13,118) (13,448) (13,645) (14,140) Administrative Expenses (343) (327) ( 321) (257) (274) (300) (301) (273) (296) Net Change (23,071) 9,521 13,437 (7,158) (6,433) (904) (13,700) (8,235) 8,031 Fiduciary Net Position at Beginning of Year 134,733 125,211 111,774 118,932 125,365 126,269 139,969 148,204 140,173 Fiduciary Net Position at End of Year (b) 111,662$ 134,733$ 125,211$ 111,774$ 118,932$ 125,365$ 126,269$ 139,969$ 148,204$ Net Pension Liability/(Asset) (a) - (b) 14,629$ (7,881)$ 8,610$ 26,782$ 22,805$ 16,905$ 22,928$ 15,130$ 11,312$ * Assumption Changes for June 30, 2015, June 30, 2018 and June 30, 2022. (In Thousands)
Source for pension liability is the June 30, 2022 GASBS 67 plan actuarial information prepared by System Actuary, Foster & Foster, Inc. GASB Statement No. 67 requires this information be reported for 10 years, or as many years as are available upon implementation.

Changes in Total Pension Liability
(In Thousands)
Changes in Fiduciary Net Position
Fis cal Year Ended
Fis cal Year Ended

PASADENA FIRE & POLICE RETIREMENT SYSTEM
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) (Continued) SCH
EDULE OF EMPLOYER’S NET PENSION LIABILITY/(ASSET) AND RELATED RATIOS Date
Discount
Rate
Total
Pension
Lia
bility
(TPL)
Fiduciary
Net Position
(F
NP)
Net Pension
Liability
(NP
L)
FNP as a
Percentage
of
TPL
(FNP/TPL)
Covered
Payroll NPL % Pay
6/30/2022 5.25% 126,291$ 111,662$ 14,629$ 88.4% n/a n/a 6/30/2021 5.75% 126,852$ 134,733$ (7,881)$ 106.2% n/a n/a 6/30/2020 5.75% 133,821$ 125,211$ 8,610$ 93.6% n/a n/a 6/30/2019 5.75% 138,556$ 111,774$ 26,782$ 80.7% n/a n/a 6/30/2018 5.75% 141,737$ 118,932$ 22,805$ 83.9% n/a n/a 6/30/2017 6.50% 142,270$ 125,365$ 16,905$ 88.1% n/a n/a 6/30/2016 6.50% 149,197$ 126,269$ 22,928$ 84.6% n/a n/a 6/30/2015 6.50% 155,099$ 139,969$ 15,130$ 90.2% n/a n/a 6/30/2014 6.00% 159,516$ 148,204$ 11,312$ 92.9% n/a n/a 6/30/2013 6.00% 168,781$ 140,173$ 28,608$ 83.1% n/a n/a Net Pension Liability/(Asset)
(In Thousands)
Source for pension liability is the June 30, 2022 GASBS 67 plan actuarial information prepared by System Actuary, Foster & Foster, Inc.

PASADENA FIRE & POLICE RETIREMENT SYSTEM
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) (Continued) SCHE

DULE OF EMPLOYER CONTRIBUTIONS
Fis cal Year
Ended
Contractually
Required
Contribution*
Actual Fiscal
Year
Contribution
Deficiency
(Ex ce ss)
Covered
Payroll
Contribution
a s % of
Payroll
6/30/2022 -$ -$ -$ n/a n/a
6/30/2021 -$ -$ -$ n/a n/a
6/30/2020 3,478$ 23,137$ (19,659)$ n/a n/a 6/30/2019 -$ -$ -$ n/a n/a
6/30/2018 -$ -$ -$ n/a n/a
6/30/2017 -$ -$ -$ n/a n/a
6/30/2016 -$ -$ -$ n/a n/a
6/30/2015 -$ -$ -$ n/a n/a
6/30/2014 1,164$ 1,164$ -$ n/a n/a 6/30/2013 -$ -$ -$ n/a n/a
(In Thousands)
*Contractually required contributions are based on Board-adopted assumptions for use in preparing the valuation, and as required by applicable Contribution Agreements with the City.

Source is the June 30, 2022 GASBS 67 plan actuarial information prepared by System Actuary, Foster & Foster, Inc. GASB Statement No. 67 requires this information be reported Employer Contributions

PASADENA FIRE & POLICE RETIREMENT SYSTEM
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) (Continued) SCHE

DULE OF INVESTMENT RETURNS
2022 2021 2020 2019 2018 2017 2016 2015 2014
Annual
money-weighted rate of return,
net of investment expense -8.60% 19.00% 2.80% 5.50% 5.60% 10.70% 0.40% 3.70% 15.40% Money-Weighted Rate of Return
Source is the June 30, 2022 Investment Performance Review provided by System investment advisor, Verus Investments.

GASB Statement No. 67 requires this information be reported for 10 years. Additional years will be displayed as information becomes available.

PASADENA FIRE & POLICE RETIREMENT SYSTEM

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) NOTE 1 – SCHEDULE OF CHANGES IN THE EMPLOYER NET PENSION LIABILITY /(ASSET) The t
otal pension liability contained in this section was provided by the System’s actuary, Foster & Foster, Inc. (Bartel Associates , LLC prior to 2022). The Net Pension L iability/(Asset) is measured as the Total Pension Liability less the amount of the Fiduciary Net Position of the System.

NOTE 2 – SCHEDULE OF EMPLOYER CONTRIBUTIONS
The r
equired employer contribution and percent of those contributions actually made are presented in this section.

The S
ystem’s funding mechanism was updated on March 18, 1999, when the System entered into Contribution Agreement No. 16,900 (“Agreement No. 16,900”) with the City. As a result of this agreement, the City made a contribution of $100,000,000 to the System on August 5, 1999 and agreed to make supplemental contributions to the System when needed. Per Agreement No. 16,900, the System was considered to meet minimum funding requirements for the year ended June 30, 2001, if the funded percentage exceeded 70%. As per the agreement, the required minimum funded percentage increases by 1/2% each year until it reaches 80% in the year ended June 30, 2021. Thereafter it may, but need not, be changed by the System.

On
October 20, 2011, the Board approved Amended and Restated Agreement No. 20,823 ( “Agreement No. 20,823” ). Under this new agreement, the City’s minimum funding percentage schedule and reimbursement cap in Agreement No. 16,900 carried forward, and the City agreed to provide a contribution of $46,600,000 to the System through the issuance of pension obligation bonds. Agreement No. 20,823 provided that the annual required supplemental contribution would be actuarially calculated using an interest assumption of 6% and an inflation rate of 3% beginning with the June 30, 2012 valuation. Pursuant to this agreement, future annual valuations after June 30, 2012, shall adopt an assumed interest rate and inflation assumption based on analysis performed by the System’s actuary and after seeking input from the City and Syst em’s professional consultant. Agreements No. 16,900 and No. 20,823 state that if the minimum fun ding deficit is greater than $3,000,000 in a year, the City will pay $3,000,000 to the System. Any remaining amount necessary to reach the minimum funding percentage will be phased in over a five- year period; however, no annual supplemental payment may exceed a reimbursement cap measured by the prior year’s payments for benefits other than the funded basic benefits.

The J
une 30, 2013 actuarial valuation determined there was a funding deficiency of $1,164,000 or 0.67% to meet the minimum funding requirement of 76.5%. The June 30, 2019 actuarial valuation determined there was a funding deficiency of $3,478,000 or 3.4% to meet the minimum funding requirement of 79.5%.

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) (Continued)

NOTE 2 – SCHEDULE OF EMPLOYER CONTRIBUTIONS (Continued)

The June 30, 202 2 funding actuarial valuation determined the AVA Funded Percentage, calculated in accordance with Agreement No. 20,823 and Contribution Agreement No. 16,900, to be 87.8% as compared to 92.1% in the prior year. The AVA Funded Percentage decreased by 6.02% over what was originally projected for 2022 in the June 30, 20 21 valuation (93.85%), and was primarily attributed to the following actuarial changes: 2.3% investment loss of $3,472,000 (investment return was lower than expected), COLA loss of $1,579,000 (COLA was higher than anticipated), demographic gains of $1,283,000 ( more deaths than actuarially estimated) , and benefit payments gain of $86,000 (higher than anticipated). As required by Contribution Agreement No. 16,900, if the AVA Funded Percentage was below the mi nimum funding percentage of 80% for fiscal year 2022, the City would have been required to reimburse the System in the following fiscal year subject to certain reimbursement limits. Based on the June 30, 2022 funding actuarial valuation, the funding deficiency was $0, or 0.0%, below the funding requirement of 80%. A required supplemental contribution is not owed to the System for the fiscal year ending June 30, 2023.

NOTE 3 – ACTUARIAL ASSUMPTIONS

The information presented in the required supplementary schedules was used in the June 30, 2022 actuarial valuation for purposes of determining the Actuarially Determined Contribution (“ADC”). The assumptions and methods used for the June 30, 2022, and all prior actuarial valuations were recommended by the System’s actuary and adopted by the Board. Consistent with the requirements of GASB Statement No. 67, the factors impacting the ADC and any changes to the factors that significantly affect trends in the reported schedules must be disclosed for 10 years.

Actuarial Demographic Assumptions

Year Ended
June 30 Mortality Mortality Improvement
2022 CalPERS 2000-2019
Experience Study
Mortality Improvement Scale
80% Scale MP-2020
2018-2021 CalPERS 1997-2015
Experience Study
Mortality Improvement Scale
MP-2017
2015-2017 CalPERS 1997-2011
Experience Study
Modified MP-2014, to converge to
ultimate mortality improvement rates in
2022
2013-2014 CalPERS 1997-2007
Experience Study
Scale AA
Schedule of Changes to Actuarial Demographic Assumptions For the Years Ended June 30, 2013 - 2022

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) (Continued) NOTE 3 – ACTUARIAL ASSUMPTIONS (Continued)
Actuarial Demographic Assumptions (Continued)
Actuarial Methods
Year
Ended
Jun
e 30 Service Disability Ben eficiaries *
Subtotal
Retirees &
Ben
eficiaries
Active
Members
Total
Members
2022 61 57 75 193 - 193
2021 67 63 49 179 - 179
2020 72 67 55 194 - 194
2019 74 71 59 204 - 204
2018 79 75 58 212 - 212
2017 82 79 56 217 - 217
2016 90 84 59 233 - 233
2015 96 86 55 237 - 237
2014 98 90 59 247 - 247
2013 106 92 59 257 - 257
*Alternative payee data for 23 Domestic Relations Order agreements provided separately from employee-retiree for first time in 6/30/22 valuation. Benefits for these alternativ e payees
previously included in the corresponding retiree’s benefits. All DRO agreements provide benefits to the alternative payees for the lifetime of the System’s retiree.

Retirees & Beneficiaries
Schedule of Changes to Actuarial Demographic Assumptions For the Years Ended June 30, 2013 - 2022
Year
Ended
Jun
e 30
Actuarial Cost
Method
Amortization
Method
Remaining
Amortization
Pe
riod
Asset Valuation
Method
2013-2022 Entry Age
Normal Cost
Level Dollar
Open Period
5-year Investment gains and
losses smoothed over 5-
year
fixed period
Schedule of Actuarial Cost and Amortization Methods
For the Years Ended June 30, 2013 - 2022

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) (Continued) NOTE 3 – ACTUARIAL ASSUMPTIONS (Continued)
Actuarial Economic Assumptions
Year
Ended
June 30
Discount
Rate
Invest.

Expens es
Admin.

Expens es Inflation
Cost of
Living
Salary
Increas e
Employee
Contrib.

Rate Notes
2022 4.75% 15 bp 50 bp 2.50% 4.00% N/A N/A
The funding discount rate was decreased to 4.75%,
investment expenses to 15 bp, inflation to 2.50%,
expected rate of return to 5.25% and 2% increase in the cost of living adjustment.
2021 5.25% 40 bp 50 bp 2.75% 2.00% N/A N/A
No changes made from 6-30-20 assumptions, with the
exception of the 1% decrease in the cost of living
adjustment.
2020 5.25% 40 bp 50 bp 2.75% 3.00% N/A N/A
No changes made from 6-30-19 assumptions, with the
exception of the 1% decrease in the cost of living
adjustment.
2019 5.25% 40 bp 50 bp 2.75% 4.00% N/A N/A
No changes made from 6-30-18 assumptions, with the
exception of the 1% increase in the cost of living
adjustment.
2018 5.25% 40 bp 50 bp 2.75% 3.00% N/A N/A
The funding discount rate was decreased to 5.25%,
inflation to 2.75%, expected rate of return to 5.75% and 1% increase in the cost of living adjustment. The
expected return changed due to change in Capital Market Assumptions. The model predicts that the Expected Long- Term Nominal Net Rate of Return (Rate of Return before
factoring in inflation but after subtracting investment fees) is only estimated to be between 5.61% and 5.83%.
2017 6.00% 40 bp 50 bp 3.00% 2.00% N/A N/A
No changes made from 6-30-15 assumptions, with the
exception of the 1% increase in the cost of living
adjustment.
2016 6.00% 40 bp 50 bp 3.00% 1.00% N/A N/A No changes made from 6-30-15 assumptions 2015 6.00% 40 bp 50 bp 3.00% 1.00% N/A N/A Discount rate assumes no cash reserve and is net of Investment Expenses; Administrative Expenses are
included in the City's contribution
2014 6.00% 40 bp 60 bp 3.00% 1.00% N/A N/A The Discount Rate of 6.0% was evaluated and recommended by the actuary using the 6-30-14 target
asset allocation, future asset allocation rebalanced to maintain cash reserve equal to expected benefits plus
Admin Expenses less City Contribution, CalPERS
investment advisors' 2013 capital market assumptions,
and Investment Expenses of 40 bps (Admin Expenses
are excluded from the Discount Rate)
2013 6.00% 40 bp 60 bp 3.00% 2.00% N/A N/A The discount rate assumed the Trust would maintain a cash reserve equal to one year's benefit payments;
Investment and Administrative Expenses are included in
the Discount Rate
Schedule of Changes to Actuarial Economic Assumptions
For the Years Ended June 30, 2013 - 2022
Sources are the Board-approved valuations, as prepared by Bartel Associates, LLC (June 30, 2013-2021) and Foster & Foster, Inc (June 30, 2022).

PASADENA FIRE & POLICE RETIREMENT SYSTEM
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) (Continued) NOTE 3 – ACTUARIAL ASSUMPTIONS (Continued)
Actuarial Economic Assumptions
Asse t Cla ss 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Domestic Equity - Large Cap N/A N/A N/A N/A 16% 16% 16% 16% 16% 16% Domestic Equity - Small Cap N/A N/A N/A N/A 4% 4% 4% 4% 4% 4% Total Domestic Equity 27% 22% 22% 20% 20% 20% 20% 20% 20% 20% Foreign Equity 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Fixed Income 30% 30% 33% 35% 20% 20% 25% 25% 25% 25%
TIPS 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%
Short-Term Investment-Grade Bonds N/A N/A N/A N/A 10% 10% 10% 10% 10% 10% Bank Loans N/A 5% 5% 5% 10% 10% 5% 5% 5% 5%
Alternative (Hedge Fund) 0.05 5% 5% 5% 5% 5% 5% 5% N/A N/A Alternative (Risk Parity) N/A N/A N/A N/A N/A N/A N/A N/A 5% 5% Real Estate 0.1 10% 10% 10% 10% 10% 10% 10% 10% 10%
Cash Equivalents 3% 3% 0% 0% 0% 0% 0% 0% 0% 0%
Total Portfolio 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Asse t Cla ss 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Domestic Equity - Large Cap N/A N/A N/A N/A N/A 4% 4.36% 4.36% 4.36% 3.77% Domestic Equity - Small Cap N/A N/A N/A N/A N/A 5% 5.18% 5.18% 5.18% 4.45% Total Domestic Equity 5.35% 5.00% 5.00% 5.00% 5.00% N/A N/A N/A N/A N/A Foreign Equity 5.35% 5.00% 5.00% 5.00% 5.00% 4.60% 4.60% 4.60% 4.60% 4.41% Fixed Income 1.55% 0.74% 0.74% 0.74% 0.74% 1.47% 1.47% 1.47% 1.47% 0.53% TIPS 1.53% 0.20% 0.20% 0.20% 0.20% 1.29% 1.29% 1.29% 1.29% -0.24% Short-Term Investment-Grade Bonds N/A N/A N/A N/A 0.74% 1.26% 1.26% 1.26% 1.26% 0.05% Bank Loans N/A 0.74% 0.74% 0.74% 0.74% 3.10% 3.10% 3.10% 3.10% 1.64% Alternative (Hedge Fund) 5.35% 3.14% 3.14% 3.14% 3.14% 2.79% 2.79% 2.79% N/A N/A Alternative (Risk Parity) N/A N/A N/A N/A N/A N/A N/A N/A 2.79% 3.38% Real Estate 0.0383 4.25% 4.25% 4.25% 4.25% 3.04% 3.04% 3.04% 3.04% 3.81% Cash Equivalents 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Inflation 3.00% 3.00% 3.00% 3.00% 3.00% 2.75% 2.75% 2.75% 2.75% 2.50% Discount Rate 6.00% 6.00% 6.50% 6.50% 6.50% 5.75% 5.75% 5.75% 5.75% 5.25% Sources are the Board-approved actuarial valuations, as prepared by Bartel Associates, LLC (June 30, 2013-2021) & Foster & Foster, Inc. (June 30, 2022).

For Domestic Equity, Bartel Associates, LLC started break ing out large and small cap for the target asset allocation in 2017 and for the expected long-term geometric real rates of return in 2018.

For the June 30, 2013 valuation, Expected Rates of Return are adjusted capital mark et assumptions from CalPERS investment advisors' 2010 capital mark et assumptions study.o t e Ju e 30, 0 5 0 a uat o s, scou t ate assu es o cas ese e a d s et o est e t expenses; the expected rates of return are based on CalPERS investment advisors' 2013 capital mark et ass
umptions.

For the June 30, 2018-2021 valuations, the expected rates of return are based on CalPERS investment advisors' 2017 capital mark et assumptions.

Expected Long-Term Geometric Real Rates of Return
For the Years Ended June 30, 2013 - 2022
Target Asset Allocation & Expected Long-Term Geometric Real Rates of Return Schedule of Changes to Actuarial Economic Assumptions
Target Asset Allocation, Year Ended June 30

OTHER SUPPLEMENTARY INFORMATION

P A S A D E N A
FIRE &
POLICE

RETIREMENT

S Y S T E M

PASADENA FIRE & POLICE RETIREMENT SYSTEM

OTHER SUPPLEMENTARY INFORMATION
AD

DITIONS BY SOURCE AND DEDUCTIONS BY TYPE
Net
Fisca l Em ployer Investment
Year Contributions Income (Loss) Total
2022 -$ (10,656)$ (10,656)$
2021 - 22,354 22,354
2020 23,137 3,394 26,531
2019 - 5,923 5,923
2018 - 6,656 6,656
2017 - 12,514 12,514
2016 - 49 49
2015 - 5,683 5,683
2014 1,164 21,303 22,467
2013 - 15,630 15,630

ADDITIONS BY SOURCE
(In Thousands)
Fisca l Administrative
Year Benefits Expens es Total
2022 12,072$ 343$ 12,415$
2021 12,506 327 12,833
2020 12,773 321 13,094
2019 12,824 257 13,081
2018 12,815 274 13,089
2017 13,118 300 13,418
2016 13,448 301 13,749
2015 13,645 273 13,918
2014 14,140 296 14,436
2013 14,322 271 14,593

DEDUCTIONS BY TYPE
(In Thousands)

OTHER INFORMATION

P A S A D E N A
FIRE &
POLICE

RETIREMENT

S Y S T E M

PASADENA FIRE & POLICE RETIREMENT SYSTEM

OTHER INFORMATION
COM

PARATIVE INFORMATION FROM PRIOR FISCAL YEARS

INTEREST RATE RISK EFFECTIVE DURATION BY ASSET MANAGER (UNAUDITED) Market Value Duration Benchmark % Under/Over
$26,646,579 6.52 Years 6.44 Years 1.2%
Market Value Duration Benchmark % Under/Over
$33,325,246 6.06 Years 6.58 Years -7.9%
Market Value Duration Benchmark % Under/Over
$28,338,102 5.41 Years 6.04 Years -10.4%
Market Value Duration Benchmark % Under/Over
$27,496,065 5.72 Years 5.73 Years -0.2%
Market Value Duration Benchmark % Under/Over
$23,701,251 6.12 Years 6.01 Years 2%
Market Value Duration Benchmark % Under/Over
$24,131,769 5.62 Years 6.01 Years -6%
Market Value Duration Benchmark % Under/Over
$43,100,920 4.82 Years 5.47 Years -12%
Market Value Duration Benchmark % Under/Over
$45,285,057 4.99 Years 5.63 Years -11%
Market Value Duration Benchmark % Under/Over
$45,858,083 4.63 Years 5.60 Years -17%
Market Value Duration Benchmark % Under/Over
$43,690,404 4.57 Years 5.49 Years -17%
Source is the June 30, 2013-2022 Investment Performance Reviews by asset manager MetWest.

MetWes t Fixed Income As s et Manager
Effective Duration
June 30, 2017
June 30, 2015
June 30, 2014
June 30, 2013
June 30, 2016
June 30, 2018
June 30, 2019
June 30, 2020
June 30, 2021
June 30, 2022

CITY OF PASADENA, CALIFORNIA

AIR QUALITY IMPROVEMENT

SPECIAL REVENUE FUND

FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Attachment G

CITY OF PASADENA, CALIFORNIA

AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INDEPENDENT AUDITORS’ REPORT 1

FINANCIAL STATEMENTS
BALANCE SHEET 4

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE 5

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET TO ACTUAL 6
NOTES TO FINANCIAL STATEMENTS 7
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH APPLICABLE REQUIREMENTS AND ON INTERNAL CONTROL OVER COMPLIANCE 9
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 12

(1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members of the City Council
of the City of Pasadena, California
Pasadena, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Air Quality Improvement Special Revenue Fund (AQMD) of the City of Pasadena, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Air Quality Improvement Special Revenue Fund of the City of Pasadena, California, as of June 30, 2022, and the changes in financial position and the budgetary comparison 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 City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the Air Quality Improvement Special Revenue Fund and do not purport to, and do not present fairly the financial position of the City of Pasadena, California, as of June 30, 2022, or the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

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.

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

CliftonLarsonAllen LLP
CLAconnect.com

Honorable Mayor and Members of the City Council
of the City of Pasadena, California
(2)
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 City’s internal control. Accordingly, no such opinion is expressed.

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

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.

Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. Our opinion on the financial statements is not affected by this missing information.

Honorable Mayor and Members of the City Council
of the City of Pasadena, California
(3)
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 17, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Housing Successor’s internal control over financial reporting and copliance.

CliftonLarsonAllen LLP
Irvine, California
March 17, 2023

CITY OF PASADENA, CALIFORNIA

AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND

BALANCE SHEET
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(4)
Governmental
Funds
ASSETS
Cash and Investments 114,981$
Accounts Receivable 48,003
Total Assets 162,984$

LIABILITIES AND FUND BALANCE

LIABILITIES
Accounts Payable 3,020$
Total Liabilities 3,020

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 47,791
Total Liabilities 47,791

FUND BALANCE
Restricted for:

Air Quality Improvements 112,173
Total Fund Balance 112,173
Total Liabilities, Deferred Inflow of Resources, and Fund Balance 162,984$

CITY OF PASADENA, CALIFORNIA

AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(5)
Governmental
Funds

REVENUES
Intergovernmental 139,995$
Investment Earnings 1,105
Total Revenues 141,100

EXPENDITURES
Transportation 146,012
Total Expenditures 146,012
NET CHANGE IN FUND BALANCE (4,912)
Fund Balance - Beginning of Year 117,085
FUND BALANCE - END OF YEAR 112,173$

CITY OF PASADENA, CALIFORNIA

AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET TO ACTUAL
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(6)
Budget Actual Variance

REVENUES
Intergovernmental 170,000$ 139,995$ (30,005)$
Investment Earnings 2,131 1,105 (1,026)
Total Revenues 172,131 141,100 (31,031)

EXPENDITURES
Transportation 172,388 146,012 26,376
Total Expenditures 172,388 146,012 26,376

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (257) (4,912) (4,655)
Fund Balance - Beginning of Year 117,085 117,085 -
FUND BALANCE - END OF YEAR 116,828$ 112,173$ (4,655)$

CITY OF PASADENA, CALIFORNIA

AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(7)
NOTE 1 DESCRIPTION OF THE REPORTING ENTITY
The City of Pasadena Air Quality Improvement Special Revenue Fund was formed to account for the allocations made by AB 2766 known as the Clean Air Act. The revenue provides a means and incentive for programs to reduce traffic and air pollution. The City performs all administrative and accounting functions. The accounting policies of the Air Quality Improvement Fund are in conformity with generally accepted accounting principles in the United States applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing accounting and financial reporting principles. These financial statements are exclusively for the Air Quality Improvement Special Revenue Fund and do not purport to, and do not, present fairly the financial position and changes in the financial position of the City of Pasadena.

Complete financial statements of the City can be obtained from the City’s Finance Department.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Fund Accounting
In order to ensure the proper identification of individual revenue sources and the expenditures made from those revenues, the Air Quality Improvement Special Revenue Fund is organized on the basis of an individual fund which is considered a separate accounting entity. The operations of the fund are accounted for with a separate set of self-balancing accounts. Monies under AB 2766 are accounted for in the Air Quality Improvement Special Revenue Fund.

Measurement Focus and Basis of Accounting
Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All governmental funds are presented using modified accrual basis of accounting.

Revenues are recognized when they become measurable and available. Measurable means the amount of the transaction can be determined and available means the amount is collectible within the current period or soon enough thereafter (generally sixty days) to be used to pay liabilities in the current period. Amounts which could not be measured or were not available were not accrued as revenue in the current year. Expenditures are also recognized under the modified accrual basis of accounting which means that expenditures are generally recorded at the time liabilities are incurred.

Fund Balances
Governmental fund balance represents the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities. Portions of a fund’s balance may be restricted for future expenditure.

CITY OF PASADENA, CALIFORNIA

AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(8)
NOTE 3 CASH AND INVESTMENTS
Equity in the Cash and Investment Pool of the City of Pasadena The AQMD has no separate bank accounts or investments other than its equity in the cash and investment pool managed by the City. The AQMD has not adopted an investment policy separate from that of the City.

The fair value of the AQMD’s investment in this pool is reported in the accompanying financial statements at amounts based upon the AQMD’s pro rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City.

Disclosures Relating to the Investment Policy, Interest Rate Risk, Credit Risk and Custodial Credit Risk
Additional disclosures related to the investment policy, interest rate risk, credit risk and custodial credit risk are available in the City of Pasadena’s Comprehensive Annual Financial Report.

9 INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH APPLICABLE

REQUIREMENTS AND ON INTERNAL CONTROL OVER COMPLIANCE
Honorable Mayor and Members of the City Council
of the City of Pasadena, California
Pasadena, California
Report on Compliance
Opinion on Compliance with Applicable Provisions of Assembly Bill 2766 We have audited the City of Pasadena’s (the City) compliance with the applicable provisions of Assembly Bill 2766, Chapter 1705 (Health and Safety Code Sections 44220 through 44247) (AB2766) applicable to the City’s Air Quality Improvement Special Revenue Fund (AQMD Fund) for the year ended June 30, 2022.

In our opinion, City complied, in all material respects, with the compliance requirements referred to above that are applicable to AQMD Fund for the year ended June 30, 2022.

Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards (Government Auditing Standards ) issued by the Comptroller General of the United States; and AB2766. Our responsibilities under those standards and AB2766 are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with 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 opinion. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s government programs.

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

CliftonLarsonAllen LLP
CLAconnect.com

Honorable Mayor and Members of the City Council
of the City of Pasadena, California
(10)
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. 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, Government Auditing Standards, and AB2766 will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the government program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and AB2766, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures inclu de examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred t o above and performing such other procedures as we considered necessary in the circumstances.

Obtain an understanding of City’s internal control over compliance rele vant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with AB2766, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance.

Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Honorable Mayor and Members of the City Council
of the City of Pasadena, California
(11)
Our consideration of internal control over compliance was for the limited purpose described in the "Auditor's Responsibilities for the Audit of Compliance" section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that have not been identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the AB2766.

Accordingly, this report is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
March 17, 2023

(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
Honorable Mayor and Members of the City Council
of the City of Pasadena, California
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 Air Quality Improvement Special Revenue Fund (AQMD) of the City of Pasadena, California (the City), as of and for the year ended June 30, 2022, and the related notes to financial statements, which collectively comprise the AQMD’s financial statements, and have issued our report thereon dated March 17, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the AQMD financial statements, we considered the City’s internal control over financial reporting (internal control) as it relates to the AQMD 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 City’s internal control related to the AQMD. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control related to the AQMD.

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 deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses and 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

Honorable Mayor and Members of the City Council
of the City of Pasadena, California
(13)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Air Quality Improvement Special Revenue Fund of the City of Pasadena, California’s financial statements are free from material misstatements, 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 City’s AQMD internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s AQMD internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
March 17, 2023

PASADENA HOUSING SUCCESSOR

CITY OF PASADENA, CALIFORNIA

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2022
Attachment H

PASADENA HOUSING SUCCESSOR

CITY OF PASADENA, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INDEPENDENT AUDITORS’ REPORT 1

FINANCIAL STATEMENTS
BALANCE SHEET 4

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES 5
NOTES TO FINANCIAL STATEMENTS 6

REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE 9
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 10

OTHER INFORMATION
COMPUTATION OF HOUSING SUCCESSOR EXCESS/SURPLUS 11
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 12

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

CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members of the City Council
of the City of Pasadena, California
Pasadena, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Pasadena Housing Successor (the Housing Successor), a Special Revenue Fund 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 Housing Successor’s 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 special revenue fund of the Pasadena Housing Successor as of June 30, 2022, and the changes in financial position 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 Housing Successor, 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, the financial statements present only the Pasadena Housing Successor Special Revenue Fund and do not purport to, and do not, present fairly the financial position of the City of Pasadena, California as of June 30, 2022, and the changes in its financial position, or where appliable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

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.

Honorable Mayor and Members of the City Council
of the City of Pasadena, California
(2)
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 Housing Successor'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.

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.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary comparison information be presented to supplement the financial statements. Such information is the responsibility of management and, although not a part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the 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 financial statements, and other knowledge we obtained during our audit of the 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.

Honorable Mayor and Members of the City Council
of the City of Pasadena, California
(3)
Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. Our opinion on the financial statements is not affected by this missing information.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the computation of the Housing Successor excess/surplus but does not include the financial statements and our auditors’ report thereon. Our opinion on the financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 17, 2023, on our consideration of the Housing Successor’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 Housing Successor’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 Housing Successor’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
March 17, 2023

PASADENA HOUSING SUCCESSOR

CITY OF PASADENA, CALIFORNIA

BALANCE SHEET
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(4)
Housing
Successor
Fund
ASSETS
Cash and Investments 2,712,441$
Receivables:

Accounts 6,375
Notes 26,318,280
Allowance for Uncollectible Notes (26,318,280)
Total Assets 2,718,816$

LIABILITIES AND FUND BALANCE

LIABILITIES
Accounts Payable and Accrued Liabilities 825,989$
Total Liabilities 825,989

FUND BALANCE
Restricted for Affordable Housing 1,892,827
Total Fund Balance 1,892,827
Total Liabilities and Fund Balance 2,718,816$

PASADENA HOUSING SUCCESSOR

CITY OF PASADENA, CALIFORNIA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(5)
Housing
Successor
Fund

REVENUES
Investment Earnings 6,508$
Rental Income 61,741
Charges for Service 55,362
Miscellaneous Revenue - Note Repayments 220,970
Total Revenues 344,581

EXPENDITURES
Housing 5,335,624
Total Expenditures 5,335,624
NET CHANGE IN FUND BALANCE (4,991,043)
Fund Balance - Beginning of Year 6,883,870
FUND BALANCE - END OF YEAR 1,892,827$

PASADENA HOUSING SUCCESSOR

CITY OF PASADENA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(6)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Financial Reporting Entity
The accompanying financial statements present only the Pasadena Housing Successor, a Special Revenue Fund of the City of Pasadena, California (the City) and do not include any other funds of the City. These financial statements are exclusively for the Pasadena Housing Successor and do not purport to, and do not, present fairly the financial position and changes in the financial position of the City. The City’s financial statements are available at City Hall.

On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (the Bill) that provides for the dissolution of all redevelopment agencies in the state of California. The Bill impacted the reporting entity of the City of Pasadena that previously had reported a redevelopment agency within the report entity of the City as a blended component unit.

On February 11, 2013, and in accordance with California Health and Safety Code Section 34176, City Council of Pasadena elected that the City retain the housing assets and housing function of the former redevelopment agency. The City continues to report the housing assets and functions in the government special revenue fund designated City Housing Successor.

The Housing Successor accounts for transactions related to affordable housing activities.

Revenues include bond proceeds held by the Pasadena Successor Agency that were transferred for use into this fund for affordable housing activities, contributions from the City of Pasadena, investment earnings, rental income, loan repayments, and interest income.

Basis of Presentation
The Housing Successor’s fund financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation The financial statements are presented using the modified accrual basis of accounting.

Revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined.

Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The Housing Successor uses a sixty-day availability period. The Housing Successor accrues the following revenue type: investment earnings.

PASADENA HOUSING SUCCESSOR

CITY OF PASADENA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(7)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Liabilities and Fund Balance
Cash and Investments
Investments are reported in the accompanying financial statements at fair value based on quoted market prices, except for certain certificates of deposit, money market investments that mature within one year of acquisition and investment contracts that are reported at cost because they are not transferable, they have terms that are not affected by changes in market interest rates, and provided that the fair value of those investments is not significantly affected by the impairment of the credit standing of the issuer or by other factors.

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

The City pools cash and investments of all funds, except for certain fund specific City-held portfolios, deferred compensation assets, and assets held by fiscal agents. The Successor Housing fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance.

Fund Balance
In the fund financial statements, the Housing Successor fund balance is made up of the following components:

Restricted fund balance is the portion of fund balance that is subject to externally enforceable limitations by law, enabling legislation or limitations imposed by creditors or grantors.

NOTE 2 CASH AND INVESTMENTS
As of June 30, 2022, the cash and investments reported in the accompanying financial statements are comprised as follows:

Equity in Pasadena Cash and Investment Pool 2,712,441$
Total Cash and Investments 2,712,441$

PASADENA HOUSING SUCCESSOR

CITY OF PASADENA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(8)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Equity in the Cash and Investment Pool of the City of Pasadena The Housing Successor has no separate bank accounts or investments other than its equity in the cash and investment pool managed by the City. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City.

The Housing Successor has not adopted an investment policy separate from that of the City.

The fair value of the Housing Successor’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Housing Successor’s pro rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City.

Disclosures Relating to the Investment Policy, Interest Rate Risk, Credit Risk, and Custodial Credit Risk
Additional disclosures related to the investment policy, interest rate risk, credit risk and custodial credit risk are available in the City of Pasadena’s Annual Comprehensive Financial Report.

NOTE 3 NOTES RECEIVABLE
The City of Pasadena Housing Successor made loans to assist in the development of affordable housing projects and the purchase of homes by homebuyers. These loans are secured by trust deeds and were funded with redevelopment low-moderate income housing set-aside funds. These notes have various terms, including maturities ranging from 5 to 45 years and interest ranging from 1.0% to 10.5%. At June 30, 2022, the long-term receivable balance was $26,318,280. Due to the uncertainty of their collectability at June 30, 2022, the City has recorded an allowance for uncollectible note balances of $26,318,280.

PASADENA HOUSING SUCCESSOR

CITY OF PASADENA, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
See accompanying Note to Required Supplementary Information. (9)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
BUDGETARY FUND BALANCE - JULY 1, 2021 6,883,870$ 6,883,870$ 6,883,870$ -$ Resources (Inflows):

Investment Earnings - - 6,508 6,508
Rental Income 12,660 12,660 61,741 49,081
Charges for Service - - 55,362 55,362
Miscellaneous Revenue 169,494 169,494 220,970 51,476
Total Amounts Available for
Appropriations 182,154 182,154 344,581 162,427
Charges to Appropriations (Outflows):

Housing 3,941,619 6,941,619 5,335,624 1,605,995
Total Charges to Appropriations 3,941,619 6,941,619 5,335,624 1,605,995 BUDGETARY FUND BALANCE - JUNE 30, 2022 3,124,405$ 124,405$ 1,892,827$ 1,768,422$ Budget Amounts

PASADENA HOUSING SUCCESSOR

CITY OF PASADENA, CALIFORNIA

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
(10)
NOTE 1 BUDGET
The City Council is required to adopt an annual budget resolution by June 30 of each fiscal year for the Pasadena Housing Successor. The budget is adopted on a basis that does not differ materially from accounting principles generally accepted in the United States of America.

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

PASADENA HOUSING SUCCESSOR

CITY OF PASADENA, CALIFORNIA
COMPUTATION OF HOUSING SUCCESSOR EXCESS/SURPLUS (HSC 34176.1) JUNE 30, 2022
(11)
Opening Fund Balance 1,892,827$
Less Unavailable Amounts: -
Available Housing Successor Funds 1,892,827$
Limitation (Greater of $1,000,000 or Four Years Deposits) Aggregate Amount Deposited for Last Four Years: **
2020 - 2021 366,012$
2019 - 2020 1,443,006
2018 - 2019 848,443
2017 - 2018 1,294,310
Total 3,951,771$
Base Limitation 1,000,000$
Greater Amount 3,951,771$
Computed Excess/Surplus -$ *
* This is the projected excess/surplus for Fiscal Year beginning July 1, 2022. Please note: If a housing successor has an excess surplus, the housing successor shall encumber the excess surplus for purposes described in paragraph (3) of subdivision (a) of Health and Safety Code 34176.1 or transfer the funds pursuant to paragraph (2) subdivision (c) of 34176.1 within three fiscal years. If the housing successor fails to comply with this subdivision, the housing successor, within 90 days of the end of the third fiscal year, shall transfer any excess surplus to the Department of Housing and Community Development for expenditure pursuant to the Multifamily Housing Program or the Joe Serna, Jr.

Farmworker Housing Grant Program.
** The City has decided to change the preceding four years to the last four fiscal years without the current fiscal year, as advised by legal counsel, starting from FY 2020.

July 1, 2022
Low and Moderate Housing Funds
All Project Area
(Projected)

CliftonLarsonAllen LLP
CLAconnect.com
(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
Honorable Mayor and Members of the City Council
of the City of Pasadena, California
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 Housing Successor Special Revenue Fund (Housing Successor) of the City of Pasadena, California (the City), as of and for the year ended June 30, 2022 and the related notes to the financial statements, which collectively comprise the Housing Successor’s financial statements, and have issued our report thereon dated March , 2023.

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

Honorable Mayor and Members of the City Council
of the City of Pasadena, California
(13)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Housing Successor Special Revenue Fund of the City of Pasadena, California’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 Housing Successor’s 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 Housing Successor’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 Housing Successor’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
March , 2023

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Attachment I

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INDEPENDENT AUDITORS’ REPORT 1

FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS 4
STATEMENT OF NET POSITION 4
STATEMENT OF ACTIVITIES 5
FUND FINANCIAL STATEMENTS 6
BALANCE SHEET 6

RECONCILIATION OF THE GENERAL FUND BALANCE SHEET TO THE STATEMENT OF NET POSITION 7

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE 8

RECONCILIATION OF THE STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGE IN FUND BALANCE TO THE
STATEMENT OF ACTIVITIES 9
NOTES TO FINANCIAL STATEMENTS 10

REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE 14
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 15
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 16

INDEPENDENT AUDITORS’ REPORT
Board of Directors
Foothill Workforce Development Board
Pasadena, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and the general fund of the Foothill Workforce Development Board (the Board), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Board’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 respective financial position of the governmental activities, and General Fund of the Foothill Workforce Development Board, as of June 30, 2022, and the respective changes in financial position 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 Board, 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.

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 Board'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.

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

CliftonLarsonAllen LLP
CLAconnect.com

Board of Directors,
Foothill Workforce Development Board
(2)
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 Board '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.

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.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary comparison information be presented to supplement the financial statements. Such information is the responsibility of management and, although not a part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the 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 financial statements, and other knowledge we obtained during our audit of the 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.

Board of Directors,
Foothill Workforce Development Board
(3)
Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. Our opinion on the financial statements is not affected by this missing information.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated March 17, 2023, on our consideration of the Board’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 Board’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 Board’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
March 17, 2023

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(4)
Governmental
Activities

CURRENT ASSETS
Cash 14,971$
Accounts Receivable 2,305,577
Other Assets 4,414
Total Current Assets 2,324,962

CURRENT LIABILITIES
Accounts Payable 352,701
Due to Other Governments 1,139,260
Total Current Liabilities 1,491,961

NET POSITION
Restricted 833,001$

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(5)

Net (Expenses)
Revenue and
Program Changes in
Revenues Net Position
Operating
Contributions Governmental
Expenses and Grants Activities

FUNCTIONS/PROGRAMS
Governmental Activities:

Workforce Development 3,009,602$ 3,717,307$ 707,705$ CHANGE IN NET POSITION 707,705
Net Position (Deficit) - Beginning of Year 125,296
NET POSITION - END OF YEAR 833,001$

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

BALANCE SHEET
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(6)
ASSETS
Cash 14,971$
Accounts Receivable 2,305,577
Other Assets 4,414
Total Assets 2,324,962$

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCE

LIABILITIES
Accounts Payable 352,701$
Due to Other Governments 1,139,260
Total Liabilities 1,491,961

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 831,064
Total Deferred Inflows of Resources 831,064

FUND BALANCE
Restricted for WIOA 1,937
Total Fund Balance 1,937
Total Liabilities, Deferred Inflows of Resources,
and Fund Balance 2,324,962$

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

RECONCILIATION OF THE GENERAL FUND BALANCE SHEET TO THE

STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(7)
Fund Balance of Governmental Funds 1,937$
Amounts reported for governmental activities in the statement of net position are different because:

Revenues are reported as unavailable revenues in the governmental funds and recognized in the statement of activities. 831,064
Net Position of Governmental Activities 833,001$

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(8)

REVENUES
Intergovernmental 2,888,234$
Total Revenues 2,888,234

EXPENDITURES
Workforce Development 3,009,602
Total Expenditures 3,009,602
NET CHANGE IN FUND BALANCE (121,368)
Fund Balance (Deficit) - Beginning of Year 123,305
FUND BALANCE - END OF YEAR 1,937$

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(9)

Net Change in Fund Balance - Total Governmental Funds (121,368)$ Amounts reported for governmental activities in the statement of activities are different because:

Revenues are reported as unavailable revenues in the governmental funds and recognized in the statement of activities. The change in unavailable revenue during the year is: 829,073
Change in Net Position of Governmental Activities 707,705$

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(10)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Developed 36 years ago, the Foothill Workforce Development Board (the Board) was approved by the City Council of the City of Pasadena as a Joint Powers Agreement (JPA) among the cities of Arcadia, Duarte, Monrovia, Sierra Madre, South Pasadena, and Pasadena. The JPA created the Foothill Employment and Training Consortium (FETC) which the City of Pasadena is the fiscal agent and has the authority to receive and administer workforce development funds. FETC formed the Foothill Workforce Development Board (Board) to take the lead in developing the implementation plan for workforce development services for job seekers and businesses. The mission is to support economic growth in the San Gabriel Valley by investing in skill development and job training to ensure that businesses have qualified workforce talent and job seekers have career opportunities.

The Board’s Americas Job Center of California is located at 1207 East Green Street in Pasadena and is funded through the Workforce Innovation and Opportunity Act (WIOA).

Basis of Presentation
The Board’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

These standards require that the financial statements described below be presented.

Government-Wide Financial Statements
Government-wide financial statements display information about the reporting government as a whole.

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

Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities are recognized when earned or when a liability is incurred.

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

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(11)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basis of Presentation
General Fund Financial Statements
The operations of the board are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements are presented after the government-wide financial statements.

Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The Board uses a sixty-day availability period. The Board considers intergovernmental revenues to be susceptible to accrual.

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

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

Accounts Receivable
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Receivables are recorded in the financial statements net of any allowance for doubtful accounts if applicable, and estimated refunds due. Federal and state grants are considered receivable and accrue as revenue when reimbursable costs are incurred.

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(12)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Equity Classifications
Government-Wide Statements
Net position is the excess of all the Board’s assets over all its liabilities, regardless of fund. Net position is divided into three categories under GASB Statement No. 34. The category used in the government-wide financial statements is as follows:

Restricted Net Position – Amounts that are subject to externally enforceable limitations by law, enabling legislation or limitations imposed by creditors or grantors.

General Fund Statements
The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the Board is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows:

Restricted – Amounts that are subject to externally enforceable limitations by law, enabling legislation or limitations imposed by creditors or grantors.

NOTE 2 CASH AND INVESTMENTS
Equity in the Cash and Investment Pool of the City of Pasadena The Board has no separate bank accounts or investments other than its equity in the cash and investment pool managed by the City. The Board has not adopted an investment policy separate from that of the City. The fair value of the Board’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Board’s pro rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City. As of June 30, 2022 the Board’s equity in the City’s cash and investment pool was a deficit of $1,139,260 which has been classified as a liability, due to other governments in the accompanying financial statements.

Disclosures Relating to the Investment Policy, Interest Rate Risk, Credit Risk and Custodial Credit Risk
Additional disclosures related to the investment policy, interest rate risk, credit risk and custodial credit risk are available in the City of Pasadena’s Annual Comprehensive Financial Report.

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(13)
NOTE 3 FUND BALANCE
The accounting policies of the Board consider restricted fund balance to have been spent first when expenditures are incurred for purposes for which both the restricted and unrestricted fund balance is available. Similarly, when expenditures are incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the Board considers committed amounts to be reduced first, followed by assigned and then unassigned amounts.

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
See accompanying Note to Required Supplementary Information. (14)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
BUDGETARY FUND BALANCE - JULY 1, 2021 123,305$ 123,305$ 123,305$ -$ Resources (Inflows):

Intergovernmental 5,483,888 5,483,888 2,888,234 (2,595,654) Other Revenue 10,000 10,000 - (10,000)
Total Resources 5,493,888 5,493,888 2,888,234 (2,605,654) Charges to Appropriations (Outflows):

Workforce Development 4,950,554 4,950,554 3,009,602 1,940,952 Total Charges to Appropriations 4,950,554 4,950,554 3,009,602 1,940,952 BUDGETARY FUND BALANCE - JUNE 30, 2022 666,639$ 666,639$ 1,937$ (664,702)$ Budget Amounts

FOOTHILL WORKFORCE DEVELOPMENT BOARD

CITY OF PASADENA, CALIFORNIA

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
(15)
NOTE 1 BUDGET
As required by the laws of the state of California, the Board prepares and legally adopts a final operating budget on or before July 1 of each fiscal year for the funds, which is prepared on the modified accrual basis of accounting. Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.

Supplemental appropriations may be made during the fiscal year. All budget amounts in the accompanying financial statements have been adjusted for legally authorized revisions of the annual budget during the year.

As of June 30, 2022, the Board did not incur expenditures exceeding appropriations.

(16)
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
Foothill Workforce Development Board
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 and the general fund of the Foothill Workforce Development Board (the Board), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Board’s basic financial statements, and have issued our report thereon dated March 17, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Board’s internal control over financial reporting (internal control) as a basis for designing the 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 Board’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Board’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 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
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Board of Directors
Foothill Workforce Development Board
(17)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Foothill Workforce Development Board’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 Board’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 Board’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
March 17, 2023

CITY OF PASADENA

AGREED-UPON PROCEDURES
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2022
Attachment J

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INDEPENDENT ACCOUNTANTS’ REPORT

ON APPLYING AGREED-UPON PROCEDURES
The Honorable City Council
City of Pasadena
Pasadena, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Worksheet No. 6 of the City of Pasadena, California, (the “City”) for the year ended June 30, 2022. The City’s management is responsible for the Appropriations Limit Worksheet No. 6.

The City and the League of California Cities (as presented in the League publication entitled "Article XIII-B Appropriations Limit Uniform Guidelines") have agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures performed and our findings were as follows:
a. We obtained the completed Appropriations Limit Worksheet No. 6 for the year ended June 30, 2022, and compared the limit and annual adjustment factors included in that worksheet to the limit and annual adjustment factors that were adopted by resolution of the City Council.

We also compared the population and inflation options included in the aforementioned worksheet to those that were selected by a recorded vote of the City Council.

No exceptions were noted as a result of our performing this procedure. b. For the Appropriations Limit Worksheet No. 6, we added last year’s limit to the total adjustments, and compared the resulting amount to this year’s limit. We also recalculated the adjustment factor and the adjustment for inflation and population, and compared the results to the amounts on Worksheet No. 6.

No exceptions were noted as a result of our performing this procedure. c. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year.

No exceptions were noted as a result of our performing this procedure.

(3)
The Honorable City Council
City of Pasadena
Pasadena, California
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Worksheet No. 6. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

CliftonLarsonAllen LLP
Irvine, California

CITY OF PASADENA
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Appropriations Limit Worksheet No. 6. (4)
Appropriations Limit for Fiscal Year Ended June 30, 2021 (see Note 2) 325,510,567$ Adjustments Factors for the Fiscal Year Ended June 30, 2022 (see Note 2):

Inflation Population
Factor Factor Combined
(Note 3) (Note 4) Factor

1.05730000000 1.00168894465 1.05908572000 x 0.05908572000 Adjustment for Inflation and Population 19,233,027
Other Adjustments (Note 5) -
Total Adjustments 19,233,027
Appropriations Limit for Fiscal Year Ended June 30, 2022 344,743,594$

CITY OF PASADENA
NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
JUNE 30, 2022
(5)
NOTE 1 PURPOSE OF LIMITED PROCEDURES REVIEW
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section

1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit.

NOTE 2 METHOD OF CALCULATION
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed at Notes 3 and 4 below.

NOTE 3 INFLATION FACTORS
A California governmental agency may adjust its appropriations limit by either the percentage change in California per capita personal income from the preceding year (which is supplied by the State Department of Finance), or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City of Pasadena (the “City”) for fiscal year 2021- 2022 represents the percentage change in California per capita personal income from the preceding year.

NOTE 4 POPULATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction’s own population, or the annual percentage change in population in the County where the jurisdiction is located. The factor adopted by the City for fiscal year 2021-2022 represents the annual percentage change in the population of the City.

NOTE 5 OTHER ADJUSTMENTS
A California governmental agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another governmental agency or private entity. The City had no such adjustments for the year ended June 30, 2022.

CITY OF PASADENA

DEFERRED COMPENSATION PLAN
YEAR ENDED JUNE 30, 2022
Attachment K

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CliftonLarsonAllen LLP
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(1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and
Members of the City Council
City of Pasadena
Pasadena, California
We have performed the procedures enumerated below on the evaluation of the deferred compensation plan of the City of Pasadena (the City) as of and for the fiscal year ended June 30, 2022. The City is responsible for maintaining records in support of the deferred compensation plan.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of an evaluation of the deferred compensation plan of the City of Pasadena as of and for the fiscal year ended June 30, 2022. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are described below.

1. We obtained payroll registers for four periods for the fiscal year ended June 30, 2022. We traced the amounts withheld relating to the 457 deferred compensation plan to the liability recorded in the benefits fund liability amount payable to the compensation provider (Great-West Financial Services).

Result: No exceptions were noted as a result of our procedures.

2. Four each of the four periods selected, we agreed the amounts withheld to the payments issued to the provider.

Result: No exceptions were noted as a result of our procedures.

3. We observed the date of the selected payments to determine that withholdings were remitted to the provider for the investment within fifteen days following the close of the month the payment related to, in accordance with Revenue Code Section 457.

Result: No exceptions were noted as a result of our procedures.

Honorable Mayor and
Members of the City Council
City of Pasadena
(2)
We were engaged by the City of Pasadena to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the deferred compensation plan of the City as of and for the fiscal year ended June 30, 2022. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City of Pasadena and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City of Pasadena, and is not intended to be, and should not be, used by anyone other than these specified parties.

CliftonLarsonAllen LLP
Irvine, California
March 31, 2023

The Honorable City Council
of the City of Pasadena
Pasadena, California
We have audited 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 the City of Pasadena as of and for the year ended June 30, 2022, and have issued our report thereon dated March 17, 2023. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards , as well as certain information related to the planned scope and timing of our audit in our engagement letter October 17, 2022. Professional standards also require that we communicate to you the following information related to our audit. related to our audit.

Significant audit findings or issues
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City of Pasadena are described in Note 1 to the financial statements.

As described in Note 1, the City changed accounting policies related to leases by adopting Statement of Governmental Accounting Standards Board (GASB Statement) No. 87, Leases, in fiscal year 2022.

Accordingly, the accounting change has been applied to the beginning period of adoption.

We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:

The annual required contributions, pension expense, net pension liability and corresponding deferred outflows of resources and deferred inflows of resources for the City’s public defined benefit plans with CalPERS are based on actuarial valuations provided by CalPERS.

The annual required contributions, pension expense, net pension liability and corresponding deferred outflows of resources and deferred inflows of resources for the Fire and Police Retirement System Plan are based on actuarial valuations provided by a third-party consultant.

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

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Attachment L

To the Honorable Mayor and Members of the City Council
City of Pasadena

The Other Postemployment Benefit (OPEB) expense, net OPEB liability, and corresponding deferred outflows of resources and deferred inflows of resources for the City’s OPEB plans are based on certain actuarial assumptions and methods prepared by an outside consultant.

Management’s estimate of the claims payable liabilities related to workers’ compensation claims are based on internal data and/or reports prepared by third-party claims administrators and general liability are based on City Attorney’s Office reports.

We evaluated the key factors and assumptions used to develop these estimated in determining that they reasonable in relation to the financial statements taken as a whole.

Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:

The disclosure of the retirement commitments reported in Note 20 to the financial statements The disclosure of the claims payable reported in Note 18 to the financial statements The disclosure of the OPEB commitments reported in Note 21 to the financial statements The financial statement disclosures are neutral, consistent, and clear.

Significant unusual transactions
We identified no significant unusual transactions.

Difficulties encountered in performing the audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected misstatements
Management did not identify and we did not notify them of any financial statement misstatements detected as a result of audit procedures.

Disagreements with management
For purposes of this communication, a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit.

To the Honorable Mayor and Members of the City Council
City of Pasadena

Circumstances that affect the form and content of the auditors’ report As previously communicated to you, the report was modified to include an emphasis of a matter to direct readers to Note 1 to the financial statements regarding adoption of new account guidance, GASB Statement No. 87.

Management representations
We have requested certain representations from management that are included in the management representation letter dated March 17, 2023.

Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Audits of group financial statements
We noted no matters related to the group audit that we consider to be significant to the responsibilities of those charged with governance of the group.

Quality of component auditor’s work
There were no instances in which our evaluation of the work of a component auditor gave rise to a concern about the quality of that auditor’s work.

Limitations on the group audit
There were no restrictions on our access to information of components or other limitations on the group audit.

Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the entity’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement.

Required supplementary information
With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI.

To the Honorable Mayor and Members of the City Council
City of Pasadena

Supplementary information in relation to the financial statements as a whole With respect to the combining and individual nonmajor fund financial statements and schedules (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated March 17, 2023.

Other information included in annual reports
Other information (financial or nonfinancial information other than the financial statements and our auditors’ report thereon) is being included in your annual report and is comprised of introductory and statistical sections. Our responsibility for other information included in your annual report does not extend beyond the financial information identified in our opinion on the financial statements. We have no responsibility for determining whether such other information is properly stated and do not have an obligation to perform any procedures to corroborate other information contained in your annual report.

We are required by professional standards to read the other information included in your annual report and consider whether a material inconsistency exists between the other information and the financial statements because the credibility of the financial statements and our auditors’ report thereon may be undermined by material inconsistencies between the audited financial statements and other information. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Our auditors’ report on the financial statements includes a separate section, “Other Information,” which states we do not express an opinion or any form of assurance on the other information included in the annual report. We did not identify any material inconsistencies between the other information and the audited financial statements.
* * *
This communication is intended solely for the information and use of the City Council and management of the City of Pasadena and is not intended to be, and should not be, used by anyone other than these specified parties.

CliftonLarsonAllen LLP
Irvine, California
March 17, 2023

CITY OF PASADENA, CALIFORNIA

SINGLE AUDIT OF FEDERALLY ASSISTED

GRANT PROGRAMS
YEAR ENDED JUNE 30, 2022
Attachment M

CITY OF PASADENA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
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 1
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR

FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER

COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 3

SUPPLEMENTARY INFORMATION

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 1
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 1

(1)
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
Honorable Mayor and
Members of the 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 the City of Pasadena, California (the City), as of and for the year ended June 30, 2022 to binder, and the related notes to the financial statements, which collectively comprise the City’s basic financia l statements and have issued our report thereon dated March 17, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the 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 the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the 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 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

Honorable Mayor and
Members of the City Council
of the City of Pasadena
(2)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the 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

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. (3)
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR

FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE, AND

REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

REQUIRED BY THE UNIFORM GUIDANCE
Honorable Mayor and
Members of the City Council
of the City of Pasadena
Pasadena, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Pasadena’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2022. The City’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for each major federal program. Our audit does not provide a legal determination the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs.

Honorable Mayor and
Members of the City Council
of the City of Pasadena
(4)
Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. 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, Government Auditing Standards , and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards , and the Uniform Guidance, we:
exercise professional judgment and maintain professional skepticism throughout the audit. identify and assess the risks of material noncompliance, 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 City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Other Matter
The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and questioned costs as item 2022-001. Our opinion on each major federal program is not modified with respect to these matters.

Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the noncompliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Honorable Mayor and
Members of the City Council
of the City of Pasadena
(5)
Report on Internal Control Over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be significant deficiencies.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 2022-001 and 2022-002 to be significant deficiencies.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

Government Auditing Standards requires the auditor to perform limited procedures on the City’ s response to the internal control over compliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of 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. We have issued our report thereon, dated March 17, 2023, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

Honorable Mayor and
Members of the City Council
of the City of Pasadena
(6)
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance (Continued)
The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

CliftonLarsonAllen LLP
Irvine, California
April 5, 2023

CITY OF PASADENA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards. ( )
Federal
Assistance Pass-Through Passed
Listing Entity Identifying Federal Through to
Number Number Expenditures Subrecipients
U.S. Department of Agriculture
Passed-through the California Department of Agriculture:

WIC Special Supplemental Nutrition Program for Women,
Infants, and Children 10.557 05-45781 936,495$ -$
Passed-through the California Department of Health Service:

Supplemental Nutrition Assistance Program Cluster:

State Administrative Matching Grants for the
Supplemental Nutrition Assistance Program Cluster 10.561 16-10156 138,284 - Total U.S. Department of Agriculture 1,074,779 -
U.S. Department of Housing and Urban Development
Direct Assistance:

Community Development Block Grant - Entitlement Grants Cluster:

Community Development Block Grant 14.218 N/A 1,488,277 189,471 COVID 19 - Community Development Block Grant Program 14.218 N/A 509,851 443,082 Subtotal Community Development Block Grant - Entitlement Grants Cluster 1,998,128 632,553 Emergency Solutions Grant Program 14.231 N/A 279,778 266,377 COVID 19 - Emergency Solutions Grant Program 14.231 N/A 1,487,088 1,390,335 Total Emergency Solutions Grant Program 1,766,866 1,656,712 HOME Investment Partnerships Program 14.239 N/A 84,427 - Community Development Block Grant Section 108 Loan Guarantees 14.248 N/A 431,748 - Continuum of Care Program 14.267 N/A 2,935,615 1,648,485 Housing Voucher Cluster:

Section 8 Housing Choice Vouchers 14.871 N/A 17,370,638 - COVID 19 - Section 8 Housing Choice Vouchers 14.871 N/A 514,867 - Subtotal Housing Voucher Cluster 17,885,505 -
Passed-through the City of Los Angeles:

Housing Opportunities for Persons with AIDS 14.241 C-134697 54,811 - Total U.S. Department of Housing and Urban Development 25,157,100 3,937,750 U.S. Department of the Interior
Direct Assistance:

WaterSMART (Sustain and Manage America's Resources
for Tomorrow) 15.507 N/A 49,184 -
Water Conservation Field Services 15.530 N/A 48,391 - Total U.S. Department of the Interior 97,575 -
U.S. Department of Justice
Direct Assistance:

Justice Reinvestment Initiative 16.827 N/A 91,121
Equitable Sharing Program 16.922 N/A 1,236,062 -
Total U.S. Department of Justice 1,327,183 -
U.S. Department of Labor
Passed through State of California:

Workforce Innovation and Opportunity Act (WIOA) Cluster:

WIOA Adult Program 17.258 AA011004 460,602 -
WIOA Adult Program 17.258 K7102027 2,089 -
WIOA Youth Activities 17.259 AA011004, AA111004 488,239 - WIOA Dislocated Worker Formula Grant 17.278 AA011004 987,624 - WIOA Dislocated Worker Formula Grant 17.278 K9110005, AA011004 353,451 - -
Subtotal Workforce Innovation and Opportunity Act (WIOA) Cluster 2,292,005 - COVID 19 - WIOA National Dislocated Worker Formula Grants/ WIA National Emergency Grants 17.277 AA011004 201,063 - Total U.S. Department of Labor 2,493,068 -
Grantor / Program / Cluster Title
Federal Grantor / Pass - Through

CITY OF PASADENA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards. ( )
Federal
Assistance Pass-Through Passed
Listing Entity Identifying Federal Through to
Number Number Expenditures Subrecipients
U.S. Department of Transportation
Passed-through State of California Department of Transportation:

Highway Planning and Construction Cluster:

Highway Planning and Construction 20.205 BHLS-5064(078) 205,232$ -$ Highway Planning and Construction 20.205 ATP-CML-5064(089) 37,415 - Highway Planning and Construction 20.205 HSIPL5064-(093) 403,051 - Highway Planning and Construction 20.205 HSIPL5064-(095) 8,847 - Highway Planning and Construction 20.205 HSIPL5064-(096) 9,308 - Highway Planning and Construction 20.205 HSIPL5064-(097) 538 - Highway Planning and Construction 20.205 SAFTEA-LU HPLUL-5064(091) 252,184 - Subtotal Highway Planning and Construction Cluster 916,575 - Federal Transit Cluster:

Federal Transit - Capital Investment Grants 20.500 SAFTEA-LU HPLUL-5064(091) 341,168 - Transit Services Program Cluster:

Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 CA-16X066 72,118 - Job Access and Reverse Commute Program 20.516 CA-37-X171 - - Job Access and Reverse Commute Program 20.516 CA-37-X123-01 - - Job Access and Reverse Commute Program 20.516 CA-37-X171 113,650 - Job Access and Reverse Commute Program 20.516 CA-37-X100, -X123,-X171 88,218 - Subtotal Transit Services Program Cluster 273,986 -
Highway Safety Cluster:

State and Community Highway Safety 20.600 PT21190 31,733 - State and Community Highway Safety 20.600 PS21025 36,786 - State and Community Highway Safety 20.600 PT22053 92,500 - Subtotal Highway Safety Cluster 161,019 -
Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 PT21190 105,695 - Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 PT22053 167,464 - Total Minimum Penalties for Repeat Offenders for Driving While Intoxicated 273,159 -
Total U.S. Department of Transportation 1,965,907 -
U.S. Department of Treasury
Direct Assistance:

COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 12,766,669 408,262 Passed-through State Water Resources Control Board (State Water Board):

COVID-19 - Coronavirus State and Local Fiscal Recovery Funds:

California Water and Wastewater Arrearage Payment Program 21.027 CA1910124 1,532,553 - Passed-through California Department of Community Services COVID-19 - Coronavirus State and Local Fiscal Recovery Funds:

California Arrearage Payment Program 21.027 00001117 3,592,894 - Total COVID-19 - Coronavirus State and Local Recovery Funds/ Total U.S. Department of Treasury 17,892,116 408,262
U.S. Department of Health and Human Services
Direct Assistance:

Substance Abuse and Mental Health Services Projects
of Regional and National Significance 93.243 N/A 473,481 - Passed-through the City of Inglewood:

Temporary Assistance for Needy Families 93.558 19-W085 162,299 - Subtotal for Temporary Assistance for Needy Families 162,299 - Grantor / Program / Cluster Title
Federal Grantor / Pass - Through

CITY OF PASADENA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards. ( )
Federal
Assistance Pass-Through Passed
Listing Entity Identifying Federal Through to
Number Number Expenditures Subrecipients
U.S. Department of Health and Human Services (Continued) Passed-through the County of Los Angeles, Department of Public Health:

Public Health Emergency Preparedness 93.354 PH-003349 205,166$ -$ COVID 19 - Public Health Emergency Preparedness 93.354 PH-003349 81,817 - Subtotal for Public Health Emergency Preparedness 286,983 - COVID 19 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.323 PH-003349 3,036,860 -
HIV Prevention Activities Health Department Based 93.940 PH-00809-2 120,198 - Block Grants for Prevention and Treatment of Substance Abuse 93.959 H702536 266,846 - Passed-through the State of California Department of Health Service:

Project Grant and Cooperative Agreements for
Tuberculosis Control Programs 93.116 NU52PS004656 10,261 - Childhood Lead Poisoning Prevention Projects State and
Local Childhood Lead Poisoning Prevention and
Surveillance of Blood Lead Levels in Children 93.197 17-10227 84,781 - Immunization Cooperative Agreements 93.268 13-20337 39,186 - COVID-19 - Immunization Cooperative Agreements 93.268 13-20337 390,663 - Subtotal Immunization Cooperative Agreements 429,849 - Activities to Support State, Tribal, Local and Territorial Health Department Response to Public Health or Healthcare Crises 93.391 PH-003349 137,176 - Maternal and Child Health Services Block Grant to the States 93.994 201061 289,473 - Medicaid Cluster:

Medical Assistance Program 93.778 RFA #15-10146 115,799 - Total U.S. Department of Health and Human Services 5,414,006 - U.S. Department of Homeland Security
Direct Assistance:

Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 N/A 1,216,910 - Passed-through the State of California Governor's Office of Emergency Services:

Hazard Mitigation Grant Program 97.039 037-56000-00 44,087 - Passed-through the County of Los Angeles:

Homeland Security Grant Program 97.067 EMW-2020-SS-00032 88,460 - Homeland Security Grant Program 97.067 EMW-2019-SS-00035 113,716 - Homeland Security Grant Program 97.067 18LA0183 27,000 - Total Homeland Security Grant Program 229,176 -
Total U.S. Department of Homeland Security 1,490,173 - TOTAL EXPENDITURES OF FEDERAL AWARDS 56,911,907$ 4,346,012$ Grantor / Program / Cluster Title
Federal Grantor / Pass - Through

CITY OF PASADENA

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
( )
NOTE 1 BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Pasadena (the City) under programs of the federal government as well as federal financial assistance passed through other government agencies for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial statements of the City. The City’s reporting entity is defined in Note 1 of the notes to the City’s financial statements.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in Note 1 of the notes to the City’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards.

The information in the SEFA is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the basic financial statements.

Pass-through entity identifying numbers are identified where available.

NOTE 3 INDIRECT COST RATE
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

CITY OF PASADENA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(1 )
Section I – Summary of Auditors’ Results
Financial Statements

1. Type of auditors’ report issued: Unmodified

2. Internal control over financial reporting:

Material weakness(es) identified? yes x no
Significant deficiency(ies) identified? yes x none reported

3. Noncompliance material to financial
statements noted? yes x no
Federal Awards

1. Internal control over major federal programs:

Material weakness(es) identified? yes x no
Significant deficiency(ies) identified? x yes none reported

2. Type of auditors’ report issued on
compliance for major federal programs: Unmodified

3. Any audit findings disclosed that are
required to be reported in accordance
with 2 CFR 200.516(a)? x yes no
Identification of Major Federal Programs
Assistance Listing Number(s) Name of Federal Program or Cluster

14.218 Community Development Block
Grants/Entitlement Grants

21.027 COVID-19 – American Rescue Plan Act Local
Fiscal Recovery

97.036 Disaster Grants – Public Assistance

93.323 Epidemiology and Laboratory Capacity for
Infectious Diseases (ELC)
Dollar threshold used to distinguish between
Type A and Type B programs: $ 1,707,357
Auditee qualified as low-risk auditee? yes x no

CITY OF PASADENA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(1 )
Section II – Financial Statement Findings
Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards.

Section III – Findings and Questioned Costs – Major Federal Programs 2022 – 001
Federal Agency: Department of Housing and Urban Development Federal Program Name: Community Development Block Grants/Entitlement Grants Assistance Listing Number: 14.218
Federal Award Identification Number: B-17-MC-06-0525 (2018); B-18-MC-06-0525 (2019); B-19- MC-06-0525 (2020); B-20-MC-06-0525 (2021); B-21-MC-06-0525 (2022) Award Period: October 1, 2017 through September 1, 2028 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or specific requirement: Program regulations require that the City submit the Consolidated Annual Performance and Evaluation Report (CAPER) 90 days after the close of the program year.

Condition: The City submitted the report beyond the 90-day requirement.

Questioned costs: None
Context: The Consolidated Annual Performance and Evaluation Report was not submitted within the 90 days.

Cause: The City was unable to reconcile year-end close and hold a public meeting within the 90 days.

Effect: The required report was not submitted within a timely manner.

Repeat finding: No
Recommendation: We recommend that the City review its procedures to ensure timely submissions for all reporting requirements.

Views of responsible officials: Management agrees with the recommendation.

CITY OF PASADENA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(1 )
Section III – Findings and Questioned Costs – Major Federal Programs (Continued) 2022 – 002
Federal Agencies: U.S. Department of the Treasury
Federal Program Titles: Corona Virus State and Local Recovery Funds and Assistance Listing Numbers (ALN): 21.027
Federal Award Identification Number: SLFRP0305
Pass-Through Agency: State Water Board and CA Department of Community Services Pass-Through Numbers: State Water Board – CA1910124; and, CA Department of Community Services - 00001117
Award Periods: ALN 21.027 - 03/03/2021 to 12/31/2024
Type of Finding: Significant deficiency in internal control over compliance Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of suspension and debarment. The City should have internal controls designed to ensure compliance with those provisions.

Condition: The City was not able to provide supporting documentation that the City verified the vendor was not suspended or debarred prior to entering the transaction.

Questioned Costs: None.

Context: Support could not be provided for one of three vendors.

Cause: The City did not maintain supporting documentation that the verification of suspension or debarment was performed prior to entering into the contract.

Effect: The auditor noted no instances of noncompliance with the provisions of suspension and debarment; however, we were not able to verify that the City followed their internal controls to ensure the vendor was not suspended or debarred prior to entering the transaction.

Repeat Finding: This is not a repeat finding.

Recommendation: We recommend the City implement procedures to ensure that documentation of the verification process for suspension and debarment is maintained to support the City's internal control over compliance.

View of Responsible Officials: There is no disagreement with the audit finding.

CITY OF PASADENA

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(1 )
Section I – Financial Statement Findings
There were no financial statements finding in the prior year.

Section II – Findings and Questioned Costs – Major Federal Programs Finding Number 2021 – 001
Condition: While an agreement was entered into with the subrecipient prior to advancing funds to the subrecipient, the agreement did not include information such as the assistance listing number, award name and number; whether the award is research and development; the name of Federal awarding agency, and notification that the funds were subject to single audit, and we were unable to observe evidence that this information was communicated to the subrecipient by other means.

Additionally, when reviewing evidence of the City’s monitoring of the subrecipient, it was unclear whether sufficient monitoring took place as schedules of grant expenditures contained immaterial unreconciled differences from the City’s records.

Status: Corrective action was taken.

Finding Number 2021 – 002
Condition: The City did not submit a performance report for January 2021 by the required deadline.

Status: Corrective action was taken.

Finding Number 2021 – 003
Condition: The City did not obligate all of the grant award within 240 days of signing the contract.

Status: Corrective action was taken.

NEW BUSINESS
ITEM 2
AMENDMENTS TO FISCAL YEAR 2023 CAPITAL

IMPROVEMENT PROGRAM

TO:

THROUGH:

FROM:

SUBJECT:

Agenda Report
Honorable Mayor and City Council
Finance Committee (April 24, 2023)
Department of Public Works
April 24, 2023
AMENDMENTS TO FISCAL YEAR 2023 CAPITAL IMPROVEMENT

PROGRAM
RECOMMENDATION:

It is recommended that the City Council:

1. Find that the proposed actions are not "projects" as defined in the California Environmental Quality Act (CEQA), Public Resources Code Section 21065 and Section 15378(b)(4) and (5) of the State CEQA Guidelines and, as such, are not subject to environmental review; and

2. Amend the Fiscal Year 2023 Capital Improvement Program (CIP) Budget as detailed in Attachment A of this report.

BACKGROUND:

Throughout the Fiscal Year (FY), the Department of Public Works in conjunction with other impacted departments reviews active CIP projects to determine if budgetary changes are needed. Staff has completed this report detailing needed budget adjustments. The budgetary changes to the projects are listed below:

1. Building Maintenance FY 2021 - 2025 (71903) - The Department of Public Works recommends appropriating $26,275 in Private Capital from Crown Castle to this project and increasing the budget by a like amount. Crown Castle pays this fee to the City for housing a cell tower at the City Yards. This funding has been dedicated to this project for use at the City Yards and is appropriated as funds are received. This funding will be used to towards ongoing security upgrades at the City Yards.

2. Complete Streets Project - Avenue 64 from Colorado Blvd to South City Limits (75077) - The Department of Public Works recommends appropriating $400,000 in Safe, Clean Water Program (Measure W) - Local Return Fund to this project and increasing the budget by a like amount. This funding will allow for the installation of stormwater components which include two drywells, a bioswale, and various piping.

MEETING OF _____ _ AGENDA ITEM NO. ____ _

INFORMATION ONLY
ITEM 3
FY 2023 CAPITAL IMPROVEMENT PROGRAM -

THIRD QUARTER MONITORING REPORT

TO:

FROM:

DATE:

DEPARTMENT OF PUBLIC WORKS

MEMORANDUM
Miguel Marquez, City Manager
Tony Olmos, P.E., Director of Public Wo�,
April 24, 2023
SUBJECT: FY 2023 Capital Improvement Program - Third Quarter Monitoring Report Attached for the Finance Committee's review is an update of the active Capital Improvement Program (CIP) projects through March 31, 2023. The Third Quarter Monitoring Report (QMR) includes 191 projects as summarized on the chart below:

Ongoing
34%
Number of Projects Reviewed - 191
Planning
11%
Completed
5%
Construction
16%
No Activity
16%
Design
18%
- If you have questions on any projects, please let me know prior to the April 24, 2023 Finance Committee meeting and I will have the appropriate staff available to respond.

Thank you.
\

Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
LEGEND
Project Completed
Project Delayed - External Factors
Project Delayed - Internal Factors
Project Over Budget

Municipal Buildings and Facilities
9,000,000111,000,000Central Library Seismic Retrofit
and Renovations
719221 Contract for professional design
services and development of
environmental documentation was
awarded on February 6, 2023.

Environmental documentation and
design will begin in FY 2023.
4,000,000
4% N/A Design338,104
1,911,4921,933,042Fire Station 31 Seismic Retrofit719142 Construction continued in the third quarter.

Construction will be completed in FY
2023.
960,000
48% 5/31/2023 Construction916,860
2,060,0502,060,050Public Works Building - Seismic
Upgrade
719153 Construction bid received on
February 16, 2023 exceeds project
budget and is anticipated to be
rejected in the fourth quarter. Project
is anticipated to be re-advertised for
construction upon rejection of bids.

Design will be completed in FY 2023.500,000
12% 6/30/2023 Construction244,054
7,675,0008,183,193Fire Stations Renovations and
Improvements
719114 Installation of temporary facilities and
on-site relocation of personnel at Fire
Station 38 was completed in the third
quarter; construction will begin in the
fourth quarter. Tenant improvements
at Fire Station 31 are anticipated to
be completed in the fourth quarter.

Tenant improvements at Fire Station
31 will be completed in FY 2023.

Seismic retrofit and renovations at Fire
Station 38 and design of renovations
at Fire Station 37 will begin in FY
2023.
2,000,000
41% N/A Ongoing3,130,711
Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2023
FY 2023
Anticipated
Expenditures Status UpdateFY 2023 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
April 17, 2023 Page 2

6,240,0248,240,024Building Maintenance FY 2021 -
2025
719035 Energy efficient lighting upgrades for
the basketball court at Villa Parke
Community Center were completed
in the third quarter. Project planning
for work at the following locations
continued in the third quarter: City
Hall, City Yard, Community Health
Center, Fire Stations (32, 33, 34, 36,
37, 38, and 39), La Pintoresca
Branch Library, Police Department,
Police Heliport, Police Range Main
Office, Schoolhouse Parking
Structure, Urgent Care, and Villa
Parke Community Center.

Power wash and exterior paint work
at the Water and Power Warehouse
was completed in the first quarter
and HVAC upgrades at Villa Parke
Community Center were completed
in the second quarter.

Work will be completed at the following
locations in FY 2023: City Hall, City
Yard, Community Health Center, Fire
Stations (32, 33, 34, 36, 37, 38, and
39), La Pintoresca Branch Library,
Police Department, Police Heliport,
Police Range Main Office,
Schoolhouse Parking Structure,
Urgent Care, Villa Parke Community
Center, and Water and Power
Warehouse. In addition, a window
washing program will be initiated and
the repair and repainting of roof top
equipment will be completed for
various facilities.
1,000,00052% 6/30/2023 Ongoing3,271,652
250,000250,000Public Health Building Tenant
Improvements
719206 Construction bids received on March
2, 2023 were significantly above
project budget. Staff is value
engineering the project and will reject
bids and re-advertise.

This project will be completed in FY
2023.
200,000
31% 6/30/2023 Construction76,266
3,400,0003,400,000Mobile Operations Center719197 Bids for professional design services were received on March 1, 2023 and
contract is anticipated to be awarded
in the fourth quarter.

Construction of storage building will
begin in FY 2023.
400,000
26% N/A Planning867,613
1,360,0001,360,000Parking Lot Improvements at City
Facilities FY 2019-2023
719098 The FY 2023 workplan was changed
as the Public Health Center parking
lot no longer requires installation of
drywell. The workplan now includes
construction of the Lamanda Park
Library parking lot. Design was
completed in the third quarter.

Construction contract is anticipated
to be awarded in the fourth quarter
as part of the Annual Citywide Street
Resurfacing and ADA Improvement
Program - FY 2023/2024 project.

Design will be completed and
installation of a drywell,
microsurfacing, and new striping at the
Public Health Center parking lot will
begin in FY 2023.
270,000
71% 6/30/2023 Design971,645
Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2023
FY 2023
Anticipated
Expenditures Status UpdateFY 2023 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
April 17, 2023 Page 3

992,0673,500,000Hale Building Interior Remodel711609 Design for the first and third floor remodel continued in the third
quarter.

Design of Phase II will begin in FY
2023.
1,000,000
100% N/A Design992,067
600,000600,000Roof Replacements - Hill Ave
Library and Victory Park
Recreation Center
7191610 No reportable activity in the third
quarter.

Construction of the Victory Park
Recreation Center roof was
completed in the second quarter.

New roof installation at the Victory
Park Recreation Center Administration
Building will be completed in FY 2023.

New roof installation at the Hill Avenue
Library will subsequently follow.
300,000
23% 6/30/2023 No Activity This
Quarter
135,792
380,000380,000Alkebu-Lan Cultural Center
Improvements
7192111 Design of the bathroom remodel was
completed in the third quarter.

Construction bids for the storage
building roof replacement were
received on March 2, 2023 and
contract was awarded by City
Council on April 3, 2023.

Construction will be completed in FY
2023.
380,000
5% 6/30/2023 Construction20,203
300,000300,000City Hall Building Systems -
Design Phase
7192312 No reportable activity in the third
quarter.

This project will begin following the
completion of the City Hall Building
Systems Assessment project.

Design will begin in FY 2023.300,000
0% N/A No Activity This
Quarter
0 175,000175,000Update to ADA Transition Plan for
City Facilities
7192413 Development of request for proposal
for professional services continued in
the third quarter.

This project will begin in FY 2023.175,000
5% N/A Planning8,853
200,0006,800,000Police Department Building
Renovation
7191814 Project is on hold pending additional
funding.

Based on initial conditions
assessment of building's power
capacity, a significant power service
upgrade is required for entirety of
building to provide desired service
level for conference room. The
increased scope of work and
subsequent cost impacts exceed
project budget.

Electrical upgrades to the conference
rooms will be completed in FY 2023.
200,000
1% 6/30/2023 No Activity This
Quarter
2,922
Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2023
FY 2023
Anticipated
Expenditures Status UpdateFY 2023 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
April 17, 2023 Page 4

100,000100,000Public Health Building Restrooms
- ADA Improvements
7192516 Funding was appropriated as part of
the September 9, 2022 CIP Budget
Amendment. Design began in the
second quarter and continued in the
third quarter.

Design will begin in FY 2023.0
14% N/A Design13,941
75,00075,000City Hall Building Systems
Assessment
7191717 A physical assessment of City Hall
was completed in the second
quarter. Review and comments on
the initial draft report were completed
in the third quarter.

The building systems assessment will
be completed in FY 2023.
30,000
92% 6/30/2023 Planning69,147
Streets and Streetscapes
5,195,39144,350,000Annual Citywide Street
Resurfacing and ADA
Improvement Program FY 2023
739381 Design continued in the third quarter.

Construction is anticipated to be
advertised in April 2023.

Resurfacing will begin in FY 2023.4,800,000
3% 12/31/2023 Design139,900
3,750,0003,750,000Annual Citywide Street
Resurfacing and ADA
Improvement Program FY 2022
739332 Construction continued in the third
quarter and is anticipated to be
completed in the fourth quarter.

Construction delayed due to
inclement weather.

Resurfacing will be completed in FY
2023.
3,500,000
62% 6/30/2023 Construction2,313,818
1,298,0504,298,050Curb Ramp ADA Improvements
Program - FY 2022 - 2026
739373 Design continued in the third quarter.Installation of curb ramps will continue in FY 2023.
600,000
61% 6/30/2027 Ongoing785,682
12,635,10821,135,108Annual ADA Sidewalk
Improvement Program
739134 Construction continued in the third
quarter. Due to inclement weather
and additional work locations,
construction is anticipated to be
completed in June 2023.

Repair of sidewalks will continue in FY
2023.
2,500,000
86% 6/30/2023 Construction10,860,514
1,865,9711,865,971Miscellaneous Sidewalk Repair
Program
739405 Construction continued in the third
quarter.

This project is managed concurrently
with the Annual ADA Sidewalk
Improvement Program (73913).

Construction for both projects will be
completed in June 2023.

Sidewalk repairs will continue in FY
2023.
300,000
48% 6/30/2023 Construction889,669
Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2023
FY 2023
Anticipated
Expenditures Status UpdateFY 2023 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
April 17, 2023 Page 5

3,050,0005,050,000Colorado Street Bridge Barrier
Enhancements
733246 Planning continued in the third
quarter. Responses to a Request for
Proposal for design services were
received on February 16, 2023 and
contract is anticipated to be awarded
in the fourth quarter. A community
outreach event providing a project
status update was held at La Casita
del Arroyo on February 22, 2023.

Environmental and design phases will
continue in FY 2023.
50,000
38% N/A Planning1,165,524
2,525,00010,575,000Holly Street Bridge - Seismic
Retrofit
733237 Design continued in the third quarter.

The seismic retrofit strategy report
and the bridge seismic retrofit plan
are currently pending Caltrans
approval. This approval is required
prior to finalizing the design plans.

Design will continue in FY 2023 and
complete in FY 2024.
675,000
40% 6/30/2024 Design1,006,524
358,000358,000Bridge Improvement Program FY
2019 - 2023
739298 Construction on Columbia St bridge
over the Metro right-of-way (Gold
Line) was completed in the third
quarter. Construction on the Del Mar
Bridge (over Eaton Wash), and the
San Rafael Bridge (over the Arroyo
Seco Channel) began in the third
quarter.

Bridge inspections and improvements
will continue in FY 2023.
100,000
42% N/A Construction151,851
200,000600,000Guardrail Program FY 2023 -
2027
739419 Planning continued in the third
quarter.

This is a continuing program. Projects
will be scheduled by City staff as
repairs and/or replacements are
identified.
200,000
19% 6/30/2023 Planning37,756
605,919605,919Guardrail Improvement Program -
Highway Safety Improvement
Program
7393010 This project was completed in the
first quarter.

All repair or replacement of damaged
guardrails at locations identified
through HSIP will be completed in FY
2023.
200,000
91% 9/23/2022 Completed552,129
5,650,0005,350,000Annual Citywide Street
Resurfacing and ADA
Improvement Program FY 2021
7393212 This project was completed in the
first quarter.

Resurfacing will be completed in FY
2023.
500,000
99% 9/30/2022 Completed5,586,343
Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2023
FY 2023
Anticipated
Expenditures Status UpdateFY 2023 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
April 17, 2023 Page 6

4,435,0004,435,000High Voltage Series Street Light
Conversion - Phase I
744151 Construction for S-013 (Marengo
Ave) circuit continued in the third
quarter and is anticipated to be
completed in the fourth quarter.

Design for S-104 (Linda Vista Ave)
circuit in coordination with Water and
Power Department continued in the
third quarter.

Construction for S-155 (Marianna
Rd) was completed in the second
quarter.

Design will continue for S-104 (Linda
Vista Ave) and S-057 (Orange Grove
Blvd from Wilson Ave to Oak Ave)
circuits in FY 2023. Construction for S-
155 (Marianna Rd), S-013 (Marengo
Ave), and S-248 (Lake Ave) circuits
will continue in FY 2023.
300,000
21% 6/30/2024 Ongoing937,892
300,00014,200,000High Voltage Series Street Light
Conversion - Phase II
744172 Design of both circuits continued in
the third quarter.

Design of S-048 (San Rafael Ave) and
S-092 (Orange Grove east) circuits will
continue in FY 2023.
30,000
79% N/A Design237,849
155,0004,600,000High Voltage Series Street Light
Conversion - Phase III
744203 Construction on the S-064
(Rosemead) circuit continued in the
third quarter and is anticipated to be
completed in the fourth quarter.

Construction on the S-064
(Rosemead) circuit began in FY 2022
and will be completed in FY 2023.
60,000
50% 6/30/2023 Construction77,499
1,233,2637,500,000Street Lighting Program744134 Installation of 17 LED luminaires at six locations was completed in the
third quarter.

This is a continuing program. Projects
will be scheduled by City staff as
requests are received for enhanced
lighting, in-fill lighting, and as street
light components in need of repair or
replacement are identified.
200,000
75% N/A Ongoing926,560
150,0002,600,000LED Street Safety Lighting
Upgrades
744215 Planning and review of qualified
products for safety light procurement
continued in the third quarter.

Procurement and installation of Phase
I will begin in FY 2023.
150,000
8% N/A Planning11,659
450,000850,000Concrete Traffic Signal/Street
Lighting Pole Replacements
744166 The FY 2023 workplan was
completed in the second quarter.

Traffic signal modifications at Foothill
Blvd and Altadena Dr were
completed.

Construction for replacement of
concrete poles at Altadena Dr and
Foothill Blvd will be completed in FY
2023.
140,000
93% 1/25/2023 Ongoing419,763
Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2023
FY 2023
Anticipated
Expenditures Status UpdateFY 2023 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
April 17, 2023 Page 7
Street Lighting

4,800,0009,780,000Mountain Street - Electrical
System Undergrounding, Lake
Avenue to Hill Avenue
32131 Designs for substructure and
electrical infrastructure continued in
the third quarter.

In FY 2023, PWP will complete the
coordinated design package and begin
contract procurement for the Mountain
Street Underground Utility.
220,000
0% 6/30/2027 Design16,157
1,020,00024,920,000Raymond Avenue - Electrical
System Undergrounding, Maple
Street to North City Limits
32142 Detailed designs for substructure
and electrical infrastructure
continued in the third quarter. In
addition, field walks were performed
to gather information and pictures
pertaining to customer
interconnection in the third quarter.

In FY 2023, PWP will begin the
coordinated design package for the
Raymond Ave. Underground Utility
District.
100,000
12% 6/30/2027 Design124,009
600,000368,000Electric System Undergrounding
Outside Established
Undergrounding Districts
32103 No reportable activity in the third
quarter.

This is an ongoing project involving
undergrounding projects that are not
part of an established undergrounding
district. An estimated four service
reimbursements will be processed in
FY 2023.
17,000
33% 6/30/2027 No Activity This
Quarter
200,684
16,0002,800,000Florecita Drive - Electrical System
Undergrounding
32174 No reportable activity in the third
quarter.

In FY 2023, efforts to establish utility
undergrounding district for Florecita
Dr. which is located in a Tier 3
(Extreme Fire Hazard) area will begin.
16,000
0% 6/30/2027 No Activity This
Quarter
0 16,0005,516,000Canyon Close - Electrical System
Undergrounding
32185 No reportable activity in the third
quarter.

Efforts to establish utility
undergrounding district for Canyon
Close which is located in a Tier 3
(Extreme Fire Hazard) area will begin
in FY 2023.
16,000
0% 6/30/2023 No Activity This
Quarter
0 Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2023
FY 2023
Anticipated
Expenditures Status UpdateFY 2023 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
April 17, 2023 Page 8
Street Lighting and Electric Undergrounding

423,481613,481Pasadena Bicycle Program FY
2021-2025
751111 Procurement for additional bike racks
began in the third quarter.

Implementation of the Bicycle
Transportation Plan will continue in FY
2023, including installation of
additional painted bike-way amenities
such as green paint at conflict points
and installation of sharrows along
Roseways. In addition, prioritization of
Bike Boulevards (Greenways), existing
bike network gaps, and associated
outreach will continue in FY 2023.
60,000
97% 6/30/2024 Ongoing412,408
499,915874,915Citywide Complete Streets
Program FY 2021-2025
751142 Speed hump installation work order
was issued to an on-call contractor
and the Ped Plan Supplemental
Analysis was completed in March
2023. Work on Mountain NTMPs are
ongoing.

Ongoing work including speed hump
investigations, preferential parking
program and Neighborhood Traffic
Management Program (NTMP) will
continue in FY 2023. Specific NTMPs
for the neighborhoods of Mountain
Street/Summit Avenue area (between
Fair Oaks Ave and Los Robles Ave),
N. Raymond Ave area (between
Washington Blvd and Montana St),
and Mountain St/Holliston Ave area
(between Mentor Ave and Hill Ave) will
be completed in FY 2023.
125,000
75% 6/30/2025 Ongoing373,957
746,9311,419,981Pedestrian Crossing
Enhancements Program FY 2021-
2025
751123
Procurement of ADA compliant
Accessible Pedestrian Signals push
buttons was completed and
installation began in the third quarter.

Installation is anticipated to be
completed by May 2023.

Rectangular Rapid Flashing Beacons
at Raymond Ave and Bellevue Dr and
Marengo Ave and Bellevue Dr will be
installed in FY 2023. In addition,
design will begin for Raymond Ave and
Grandview St, Euclid Ave and
Glenarm St, and El Molino Ave and
Buckeye St and installation of new
ADA compliant APS push buttons at
16 intersections will be completed in
FY 2023.
200,000
65% 6/30/2023 Construction483,591
Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2023
FY 2023
Anticipated
Expenditures Status UpdateFY 2023 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
April 17, 2023 Page 9
Transportation
Active Transportation/Complete Streets

10,312,01710,312,017Complete Streets Project - Union
Street Cycle Track
750875 Construction continued in the third
quarter and is anticipated to be
completed by Summer 2023.

Construction will continue in FY 2023.6,960,000
52% 12/30/2023 Construction5,317,628
4,476,3425,500,000Complete Streets Project -
Cordova St from Hill Ave to Arroyo
Pkwy
750526 Construction will begin in April 2023.Construction will begin in FY 2023.3,700,000 16% 10/31/2023 Construction730,854
1,871,0001,871,000Complete Streets Project - Ave 64
from Colorado Blvd to South City
Limits
750778 Design was completed in the third
quarter. In February 2023, Metro
Measure R Mobility Improvement
Program Grant funding was secured
for construction. Project will advertise
for bids in Summer/Fall 2023.

Construction will begin in FY 2023.1,319,000
29% 12/31/2024 Design537,918
1,599,9801,964,960Complete Streets Project - N Hill
Ave from North City Limit to Villa
St
750939 Contract for construction was
awarded by City Council on March
13, 2023.

Design will continue in FY 2023.900,000
23% 6/30/2024 Construction369,849
3,133,0903,133,090South Lake Ave Pedestrian
Access Improvements to Gold
Line Station
7510610 Contract for construction was re-
advertised in the third quarter and
bids received on March 2, 2023 are
currently under evaluation.

Construction will begin in FY 2023.2,400,000
17% N/A Construction543,032
200,000200,000Complete Streets Project -
Mountain St at Sierra Bonita Ave
and Sinaloa Ave - Design Phase
7510711 No reportable activity in the third
quarter.

Concept plan was approved at the
neighborhood meeting in October
2022. Final design is on hold until
construction funding is identified.

Design will be completed in FY 2023.130,00030% 6/30/2023 No Activity This Quarter
59,170
Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2023
FY 2023
Anticipated
Expenditures Status UpdateFY 2023 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
April 17, 2023 Page 10
260,500410,500Arterials Speed Management
Program FY 2021-2025
751134 Work orders were issued for speed
feedback installations on Allen Ave,
Lake Ave, and Fair Oaks Ave in the
third quarter. Field crews will
schedule and complete installations.

Design for speed back signs on Villa
St between Wilson Ave and Hill Ave,
Washington Blvd between Catalina
Ave and Hill Ave, California Blvd
between Oakland Ave and Madison
Ave, and Fair Oaks Ave at Penn St
began in FY 2022 and will be
completed in FY 2023.
75,000
32% N/A Construction83,080

150,0002,200,000Pasadena Pedestrian Plan -
Outreach and Conceptual Design
7551117 No reportable activity in the third
quarter.

Outreach and concept design will
begin in FY 2023.
150,000
0% N/A No Activity This
Quarter
0 600,000800,000Greenway (Bike Boulevard)
Implementation - Design Phase
7512619 Work to include alternative project
features continued in the third
quarter. Greenway outreach will
begin in the fourth quarter.

Greenway outreach and quickbuild of
an additional corridor will begin in FY
2023.
600,000
0% N/A Design0
Traffic Operations, Traffic Signals, and ITS
225,000625,000Transportation System Safety
Enhancements Project - FY 2021
- 2025
7511521 No reportable activity in the third
quarter.

Design of safety enhancements to
address safety concerns at high
collision intersections, with a focus on
the Civic Center and the Central
Business District will begin in FY 2023.
150,000
0% 6/30/2025 No Activity This
Quarter
0 1,447,1911,447,191Implement Bus Signal Priority
System on Pasadena Transit
Buses
7509422 Design continued in the third quarter.Installation will continue in FY 2023.1,050,000 22% N/A Design319,069
2,071,7662,071,766Adaptive Traffic Control Network -
Phase II
7509523 This project was completed in the
second quarter.

Construction will be completed in FY
2023.
1,080,000
84% 2/15/2023 Completed1,748,452
125,000125,000Traffic Signal Safety
Enhancements at the
Intersections of Lake Ave at
Corson St and Maple St
7510824 No reportable activity in the third
quarter.

Signs, safety analytics software, and
360 video detection system will be
installed in FY 2023.
12,000
95% 6/30/2023 No Activity This
Quarter
118,467
Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2023
FY 2023
Anticipated
Expenditures Status UpdateFY 2023 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
April 17, 2023 Page 11
1,867,5002,367,500Enhancements to Metro Gold Line
Allen Station
7551412 Planning continued in the third
quarter. Design improvements will
begin following the finalization of the
Affordable Housing and Sustainable
Communities state grant agreement
with the Department of
Transportation.

A quick build pilot project began
implementation in FY 2022 and will
continue into FY 2023. The design of
the permanent installation will begin in
FY 2023.
1,867,500
0% 6/30/2022 Planning0
1,357,5001,357,500Installation of Leading Pedestrian
Interval and Audible Signals at
Signalized Intersections
7512514 1,357,500 This project will continue in FY 2023. Design continued in the third quarter. 0% N/A Design1,545

698,711698,711Intelligent Transportation System
Phase I - Parking Guidance
7591227 Procurement of construction
materials and evaluations of existing
infrastructure began in the third
quarter.

Construction will begin in FY 2023.667,000
8% 9/30/2023 Construction55,575
300,802500,802Intelligent Transportation System
(ITS) Equipment
Upgrades/Replacement - FY
2021-2025
7511728 Replacement of aging ITS equipment
continued in the third quarter.

Damaged fiber connections were
repaired and a new CCTV was
installed.

This project will continue in FY 2023.50,000
28% N/A Ongoing85,024
262,144462,144Mobility Corridor Improvements
FY 2021-2025
7511829 Construction continued in the third
quarter.

This project will continue in FY 2023.50,000
79% 6/26/2023 Construction206,548
4,100,0004,100,000Walnut St Corridor Signal
Improvements
7512131 Design continued in the third quarter.Design will continue in FY 2023.400,000 0% N/A Design0
2,605,0002,605,000St. John Capacity Enhancement7512032 Design of traffic signal modifications continued and a public outreach
meeting was held at Sequoyah
School in the third quarter.

Design will continue in FY 2023.400,000
4% N/A Design100,990
3,800,0003,800,000Intelligent Transportation System
Projects & Traffic Flow
Improvements within the SR 710
Affected Corridors
7591433 This project is pending Metro
approval of Letter of Agreement.

Work to finalize the agreement
continued in the third quarter.

Design began in FY 2022 and will be
completed in FY 2023.
80,000
0% 6/30/2023 Ongoing0
Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2023
FY 2023
Anticipated
Expenditures Status UpdateFY 2023 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
April 17, 2023 Page 12
129,512189,512Old Pasadena Traffic
Improvement - FY 2021-2025
7511625 No reportable activity in the third
quarter.

On-street dining was installed in FY
2021 and will continue to be
maintained in FY 2023. Additional
enhancements to signing, striping, on-
street parking, and signal operations
will also continue as requests are
received.
30,000
5% 6/30/2025 No Activity This
Quarter
6,240
4,270,8005,711,908Gold Line Phase I - Project
Enhancements
7550626 Installation of pedestrian access
enhancements is pending
coordination with Metro.

Analysis of traffic conditions at Holly St
and Arroyo Pkwy for Pedestrian
Access Enhancements to Metro Gold
Line Memorial Park Station (75523)
will continue and implementation of
Light Rail Train Tracking and Network
System (75517) will be completed in
FY 2023.
150,000
0% 6/30/2023 Construction12,522

531,000531,000Traffic Signal at Orange Grove
Blvd and Sunnyslope Ave
7509937 Construction began in the third
quarter.

Construction will begin in FY 2023.50,000
12% 6/30/2024 Construction61,945
560,0001,000,000Installation of Pedestrian Hybrid
Beacon at Washington Blvd and
Hudson Ave
7551238 Design continued in the third quarter.Design will begin in FY 2023.60,000 1% N/A Design3,642
Transit
13,495,80518,742,494Purchase of Replacement Transit
Vehicles and Expansion Fixed-
Route Transit Vehicles
7508541 An independent cost analysis was
completed and procurement for
vehicles began in the first quarter.

Procurement efforts continued in the
third quarter and contract is
anticipated to be awarded in the
fourth quarter.

Ten replacement renewable natural
gas (RNG) standard buses are
anticipated for order in FY 2023 and
delivery in FY 2024.
4,230,000
38% N/A Ongoing5,137,615
1,274,3162,234,316Purchase of Dial-A-Ride Vehicles7508642 An independent cost analysis was completed and procurement for
vehicles began in the first quarter.

Procurement efforts continued in the
third quarter and contract is
anticipated to be awarded in the
fourth quarter.

Two replacement vehicles and one
expansion vehicle will be purchased
and delivered in FY 2023.
327,423
74% 6/30/2023 Ongoing946,893
432,093732,093Bus Stop Improvement Program7590044 No reportable activity in the second quarter.

This is a continuing program. Projects
will be scheduled by City staff as
locations are identified.
125,000
77% N/A No Activity This
Quarter
332,368
Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2023
FY 2023
Anticipated
Expenditures Status UpdateFY 2023 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
April 17, 2023 Page 13
1,060,0001,410,000Traffic Signal at Orange Grove
Blvd and Craig Ave
7509735 Preparation of agreements for
Affordable Housing and Sustainable
Communities grant funding
continued in the third quarter. Project
is under redesign to include curb
extensions.
560,000 Design will continue in FY 2023.
8% 6/30/2023 Design89,803
620,000620,000Installation of Automated License
Plate Readers - Pilot Program
7511936 This project was completed in the
second quarter.

Installation of three initial locations
under the Urban Areas Security
Initiative Program grant were
completed in December 2022 and
became operational in January 2023.

This project will continue in FY
2023.
620,000
1% N/A Completed8,528

3,000,0007,000,000Annual Sewer System
Improvements and Capacity
Upgrades - FY 2022-2026
769181 Construction continued in the third
quarter.

Repair or rehabilitation of sewer will
continue in FY 2023 as identified by
annual inspection and evaluation.
2,960,000
9% 6/30/2023 Construction255,859
2,326,2936,326,293Annual Storm Drain System
Repair & Improvements - FY 2020
- 2024
769132 Construction continued in the third
quarter.

Construction of miscellaneous catch
basin repairs at 13 locations citywide
and drainage issues along Kewen
Drive will be completed in FY 2023.

Additionally, various improvements to
the open portions of the East Side
Storm Drain will begin.
1,950,000
30% 6/30/2023 Construction688,967
9,641,5519,641,551San Rafael Treatment Wetlands
and Storm Water Capture
762913 Design continued in the third quarter.Public outreach and design will continue in FY 2023.
1,500,000
11% 6/30/2023 Design1,068,117
2,900,0002,900,000Modernization of Busch Garden
and Rosemont Sewer Pump
Stations
769174 No reportable activity in the third
quarter.

Due to budget shortfall, project was
put on hold.

Construction will begin in FY 2023.2,650,000
10% 6/28/2024 12/19/2025 No Activity This
Quarter
287,901
2,970,0003,556,000NPDES Rio Hondo Bacteria Load
Reduction - Design Phase
762925 Design continued in the third quarter.Design of this project will continue in FY 2023 and is being managed by
San Gabriel Valley Council of
Governments.
1,500,000
24% 6/30/2023 Design700,249
200,0001,000,000Civil Defense - Septic System
Upgrades - Design Phase
769196 Design continued in the third quarter.Design will begin in FY 2023.200,000 4% 6/30/2023 Design8,250
Capital Improvement Program
FY 2023 Quarter Monitoring Report
Activity Through March 31, 2023
Priority
Total
Estimated
CostProject Name
Appropriation
Thru FY 2023
FY 2023
Anticipated
Expenditures Status UpdateFY 2023 Workplan ScheduleProject# % of
Appropriations
Spent To Date
Revised
Completion
Date
Target
Completion
Date Phase
Expenditures
Life of
Project
April 17, 2023 Page 14
Parking
1,500,00012,100,000Off Street Parking Facility
Maintenance and Repair Project
721601 Project planning and development of
scope specifications to replace the
elevator cabs in a majority of the
parking garages continued in the
third quarter. Contract for
procurement is anticipated to
advertise in the fourth quarter.
1,500,000 This work will begin in FY 2023.
1% N/A Planning9,955
Sewers and Storm Drains