AR 10 ATTACHMENT A - FY 2023 City of Pasadena Annual Comprehensive Financial Report (Final) — Pasadena City Council, January 22, 2024 (part 1 of 2)

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2023
Attachment A
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CITY OF PASADENA, CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
Year Ended June 30, 2023
MIGUEL MÁRQUEZ, CITY MANAGER
MATTHEW E. HAWKESWORTH, DIRECTOR OF FINANCE

PREPARED BY THE DEPARTMENT OF FINANCE, CITY OF PASADENA Victor M. Gordo
Mayor
Tyron Hampton
Councilmember
District 1
Felicia Williams
Vice-Mayor
District 2
Justin Jones
Councilmember
District 3
Gene Masuda
Councilmember
District 4
Jessica C.

Rivas
Councilmember
District 5
Steve Madison
Councilmember
District 6
Jason Lyon
Councilmember
District 7

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TABLE OF CONTENTS CITY OF PASADENA
Annual Comprehensive Financial Report | June 30, 2023 i

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

FINANCIAL SECTION
Independent Auditors’ Report .................................................................................................................................................. xix Management’s Discussion and Analysis (Required Supplementary Information) ........................................................................ 1 Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position ................................................................................................................................................... 16 Statement of Activities ........................................................................................................................................................ 18 Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet .............................................................................................................................................................. 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .......................................................................................................................... 21 Statement of Revenues, Expenditures and Changes in Fund Balances ........................................................................ 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities .......................................................................................................................................... 23 Proprietary Fund Financial Statements
Statement of Net Position ............................................................................................................................................ 24 Statement of Revenues, Expenses and Changes in Net Position .................................................................................. 26 Statement of Cash Flows.............................................................................................................................................. 28 Fiduciary Fund Financial Statements
Statement of Net Position ............................................................................................................................................ 32 Statement of Changes in Net Position ......................................................................................................................... 33 Notes to the Basic Financial Statements ................................................................................................................................. 37

CITY OF PASADENA
ii Annual Comprehensive Financial Report | June 30, 2023

TABLE OF CONTENTS
FINANCIAL SECTION (Continued)
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund ........................................................................................................................................................... 121 – Housing Successor Fund – Special Revenue Fund .................................................................................................... 122 – Project Management Fund – Capital Projects Fund ................................................................................................. 123 Notes to Required Supplementary Information ................................................................................................................ 125 Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan ................................................... 126 Schedule of Plan Contributions – Miscellaneous Plan ....................................................................................................... 128 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan ................................................................ 130 Schedule of Plan Contributions – Safety Plan ................................................................................................................... 132 Schedule of Changes in Net Pension Liability and Related Ratios – Fire and Police Retirement System ......................... 134 Schedule of Plan Contributions – Fire and Police Retirement System............................................................................... 136 Schedule of Fire and Police Retirement System Plan Investment Return ......................................................................... 137 Schedule of Changes in the Net OPEB Liability and Related Ratios ................................................................................... 138 Schedule of OPEB Plan Contributions ................................................................................................................................ 139 Supplementary Information
Nonmajor Governmental Funds
Combining Balance Sheet .......................................................................................................................................... 142 Combining Statement of Revenues, Expenditures and Changes in Net Position ....................................................... 143 Special Revenue Funds
Combining Balance Sheet .......................................................................................................................................... 148 Combining Statement of Revenues, Expenditures and Changes in Net Position ....................................................... 150 B u d g e t a r y C o m p a r i s o n S c h e d u l e s Special Revenue Funds
Public Safety Fund ............................................................................................................................................... 152 Health Fund ........................................................................................................................................................ 153 Building Services Fund ........................................................................................................................................ 154 Sewer Construction and Maintenance Fund… ..................................................................................................... 155 Underground Utilities Fund ................................................................................................................................. 156 Transportation Fund ........................................................................................................................................... 157 Library Services Fund .......................................................................................................................................... 158 Parking Fund ....................................................................................................................................................... 159 Air Quality Improvement Fund ........................................................................................................................... 160 Housing and Community Development Fund ..................................................................................................... 161 Donated Funds .................................................................................................................................................... 162

TABLE OF CONTENTS CITY OF PASADENA
Annual Comprehensive Financial Report | June 30, 2023 iii FINANCIAL SECTION (Continued)
Capital Projects Funds
Combining Balance Sheet .......................................................................................................................................... 166 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................................... 168 Permanent Funds
Combining Balance Sheet .......................................................................................................................................... 174 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................................... 176 Nonmajor Enterprise Funds
Combining Statement of Net Position ........................................................................................................................ 182 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................................. 183 Combining Statement of Cash Flows ......................................................................................................................... 184 Internal Service Funds
Combining Statement of Net Position ........................................................................................................................ 190 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................................. 192 Combining Statement of Cash Flows ......................................................................................................................... 194 Fiduciary Funds
Combining Statement of Net Position – Employee Benefit Trust Funds .................................................................... 202 Combining Statement of Changes in Net Position – Employee Benefit Trust Funds .................................................. 203 Combining Statement of Net Position – Custodial Funds .......................................................................................... 204 Combining Statement of Changes in Net Position– Custodial Funds ......................................................................... 205 Combined Successor Agency Funds
Combining Statement of Net Position – Private-Purpose Trust Funds ....................................................................... 210 Combining Statement of Changes in Net Position – Private-Purpose Trust Funds .................................................... 212 Discretely Presented Component Unit
Combining Statement of Net Position ........................................................................................................................ 218 Combining Statement of Revenues, Expenses and Changes in Net Position .............................................................. 219 Rose Bowl Operating Company
Combining Statement of Net Position ........................................................................................................................ 220 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................................. 221

STATISTICAL SECTION
Financial Trends
Net Position by Component ...................................................................................................................................... 226 Changes in Net Position ............................................................................................................................................. 228 Fund Balances of Governmental Funds ..................................................................................................................... 232 Changes in Fund Balances of Governmental Funds ................................................................................................... 234

CITY OF PASADENA
iv Annual Comprehensive Financial Report | June 30, 2023

TABLE OF CONTENTS
STATISTICAL SECTION (Continued)
Revenue Capacity
Assessed Value and Actual Value of Taxable Property ............................................................................................. 237 Direct and Overlapping Property Tax Rates .............................................................................................................. 238 Principal Property Taxpayers ..................................................................................................................................... 240 Property Tax Levies and Collections .......................................................................................................................... 241 Taxable Sales by Category… ....................................................................................................................................... 242 Electricity Sold by Type of Customer ......................................................................................................................... 244 Electricity Rates ......................................................................................................................................................... 246 Electricity Customers ................................................................................................................................................. 247 Debt Capacity
Ratios of Outstanding Debt by Type .......................................................................................................................... 248 Ratios of General Bonded Debt Outstanding ............................................................................................................ 252 Direct and Overlapping Debt… .................................................................................................. ................................ 255 Legal Debt Margin Information ................................................................................................................................. 256 Pledged Revenue Coverage – Governmental Activity Debt ...................................................................................... 258 Pledged Revenue Coverage – Business-type Activity Debt ....................................................................................... 259 Demographic and Economic Information
Demographic and Economic Statistics ....................................................................................................................... 260 Principal Employers ................................................................................................................................................... 261 Operating Information
Full-time and Part-time City Employees by Function ................................................................................................ 262 Operating Indicators by Function .............................................................................................................................. 264 Capital Asset Statistics by Function ........................................................................................................................... 266

INTRODUCTORY SECTION
ANNUAL COMPREHENSIVE FINANCIAL REPORT | FISCAL YEAR ENDED JUNE 30, 2023 (This page intentionally left blank)

CITY OF PASADENA LETTER OF TRANSMITTAL
Annual Comprehensive Financial Report | June 30, 2023 vii December 28, 2023
To the Honorable Mayor, Members of the City Council
and the Citizens of the City of Pasadena, California:

The Annual Comprehensive Financial Report (ACFR) of the City of Pasadena, California (City) for the fiscal year ended June 30, 2023 (FY 2023) is hereby submitted in compliance with Section 907.5 of the City Charter. Management assumes full responsibility for the completeness and reliabilit y of the information contained in this report, based upon a comprehensive internal control framework it established for this purpose. Because the cost of internal controls should not exceed anticipated benefits, the obje ctive is to provide reasonable assurance, rather than absolute assurance, that the financial statements are free of any material misstatement.

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

The City Charter requires an audit of the financial statements of all accounts of the City by an independent certified public accountant. This year's audit was undertaken by Lance, Soll & Lunghard, LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Pasadena for the year ended FY 2023 fairly state the City’s financial position. The independent audit involved examining evidence, on a test basis, that supports the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded based upon the audit, that there was a reasonable basis for rendering an unmodified opinion on the City of Pasadena’s financial statements for FY 2023 and that these financial statements are fairly presented in co nformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. Under the current auditor contract, the City required the auditor to include sampling from every fund.

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

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

LETTER OF TRANSMITTAL CITY OF PASADENA
viii Annual Comprehensive Financial Report | June 30, 2023

GOVERNMENTAL STRUCTURE
The City was incorporated in 1886 and became a Charter City in 1901. The City operates under the powers granted by the City Charter, which dictates the responsibilities of the City Council a nd the City Manager. There are seven City Council members who are nominated and elected by district for overlapping, four-year terms. In addition, there is a Citywide elected Mayor who also serves a four-year term.

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

The City covers an area of 23 squa re miles in the northwestern portion of the San Gabriel Valley and has a 2023 population of 136,988, according to the California State Department of Finance. The City is bounded on the west by the cities of Los Angeles, Glendale, and La Cañada Flintridge; on the south by South Pasadena and San Marino; on the east by Arcadia and Sierra Madre; and on the north by the unincorporated community of Altadena.

REPORTING ENTITY AND ITS SERVICES
This report includes all funds of the City , as well as all its component units. Component units are legally separate entities for which the City is financia lly accountable. Blended component units , although legally separate entities, are, in substance, part of the City's operations and are included in this ACFR as part of the City. Accordingly, the Pasadena Public Financing Authority, Pasadena Parking Authority, the Pasadena Civic Improvement Corporation, and the Pasadena Fire and Police Retirement System are reported as part of the City. The Successor Agency to the Pasadena Community Development Commission is shown as a Private-Purpose Trust Fund reported in the Fiduciary Funds Section. The Pasadena Rental Housing Board (PRHB) is shown as a Custodial Fund reported in the Fiduciary Funds Section as well. Discretely pres ented component units are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the City and to differentiate their financial position, results of operations, and ca sh flows from those of the City. The Rose Bowl Operating Company, the Pasadena Center Operating Company, and the Pasadena Community Access Corporation are discretely presented component units. Separate financial statements are also available for all three discretely presented component units. The City is a party to, and designated administrator for, two Joint Powers Authorities, the Foothill Air Support Team and the Foothill Workforce Development Board. These entities are accounted for in the City books, ACFR, and audited as part of the City’s audit.

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

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

CITY OF PASADENA LETTER OF TRANSMITTAL

Annual Comprehensive Financial Report | June 30, 2023 ix

FACTORS AFFECTING FINANCIAL CONDITION

The information presented in the financial statements, is perhaps best understood when considered from the broader perspective of the current environment in which the City of Pasadena operates. It is important to consider various shifts in the global economy including rising interest rates and inflationary pressures.

THE CURRENT ECONOMIC CLIMATE

The national and global economies continue to face inflat ionary pressures, initially caused by ongoing supply chain shortages, and the war in Ukraine. Up ward price pressures on energy, raw ma terials, and finished goods translate to inflation and increase to the Consumer Price Index (CPI) across all sectors of the economy. The year-over-year CPI rose 5.0% in March of 2023, which is lower than one-year ago and continues to trend downward. This, however, is well above the 2.1% three-year average before the pandemic and the 2.0% goal for the Federal Reserve Board (Fed).

In an effort to control inflation, the Fed continued to ra ise interest rates, including a 0.25% increase in May 2023 that brought the overall Fed Funds rate to the 5.00-5.25% target range. While rising interest rates will positively affect our investment income long-term, it will also deter future business expansion due to the cost of financing.

General Fund revenues have shown stability in FY 2023, as property tax, sales tax, utility users’ tax, and transient occupancy tax continue to show resilience and recovery.

The City received $52.2 million in direct support through the American Rescue Plan Ac t (ARPA). The City used approximately $21.7 million in FY 2022 for revenue lo ss replacement and fund prev iously postponed capital improvement projects. The remainder of the ARPA funds were transferred to the General Fund in the revenue loss category in FY 2023 to be utilized to support public safety, housing, and public health.

Looking Forward

The rebound in our local, state, and national economie s form COVID-19 has largely subsided and most revenue growth is normalizing to more traditional levels. Inflatio n will continue to have a gr owth impact on some tax revenues, such as sales tax growth due to higher prices be ing taxed. It is important to recognize that while some revenues may increase, the cost of do ing business has also increased. To urism and travel related to business meetings and conferences have continued to recover.

Fortunately, the City benefited from having a diverse econ omy that is not over-reliant on one industry or tax base.

A solid mix of automotive dealers, general and consum er goods businesses, restau rants, and hotels provide a relatively stable tax base. When combined with growing technology and heal th/life sciences sectors, the overall economic blend provides more stability. Additionally, interest in the City by businesses in many of these key sectors continues to grow. As shown by the recent additions of Lucid Motors, Build Your Dreams, Xencor, General Motors Design Studio, Doheny Eye Institute, and the renewed lease through 2035 of Western Asset.

LETTER OF TRANSMITTAL CITY OF PASADENA
x Annual Comprehensive Financial Report | June 30, 2023 General Fund Five-Year Forecast
FY 2022 FY 2023 FY 2023 FY 2024 FY 2025 FY 2026 FY 2 027 FY 2028 Final Budget Forecast Budget Forecast Forecast Forecast Forecast Beginning Amount Available for Appropriations -$ 2,862,525 $ 3,599,811$ 4,705,630$ 3,631,302$ 6,345,136$ 8,481,257$ 10,193,342$ Revenues
Tax Re venues 235,450,392 233,807,300 239,647,529 250,860,100 259,554,112 267,716,588 275,373,622 283,296,920 Other Re venu es 38,773,949 43,419,712 43,804,810 51,094,667 52,327,280 53,591,231 54,887,333 56,216,421 Contributions/Svs. From Other Funds 30,734,245 20,715,438 41,080,568 16,840,438 26,840,438 21,840,438 21,840,438 21,840,438 Total Revenues 304,958,586 297,942,450 324,532,907 318,795,205 338,721,830 343,148,257 352,101,394 361,353,779 Expense
s
Perso nnel 172,168,785 186,860,271 185,451,679 203,776,326 209,586,945 216,488,579 223,014,867 228,410,771 De bt Se rvice 20,646,499 11,597,702 11,597,702 11,702,452 12,322,553 12,323,966 12,317,139 11,290,184 Contributions T o Other Fun ds 20,774,735 14,629,784 16,189,784 13,567,521 12,308,871 12,555,049 12,806,150 13,062,273 Other Expenses 79,473,305 82,852,050 88,557,436 94,643,234 96,789,627 99,644,542 102,251,152 104,934,444 Total Expenses 293,063,323 295,939,806 301,796,601 323,689,533 331,007,997 341,012,135 350,389,308 357,697,672 Operating lncome/(Loss} 11,895,262 2,002,644 22,736,307 (4,894,328) 7,713,834 2,136,121 1,712,086 3,656,108 Ending Amount Available for Appropriations 11,895,262 4,865,169 26,336,118 (18 8,698) 11,345,136 8,481,257 10,193,342 13,849,449 Contributions to Capital Projects - - - (19,180,000) - - - - Rese rve fo r Capital & Other Fun ds (5,616,537) - (20,365,130) 18,000,000 - - - - Red uction/(Contribution) to Policy Rese rve (3,416, 200) (1,265,358) (1,265,358) 5,000,000 (5,000,000) - - - Net lncome/(Loss) with Reserve Contribution 2,862,525$ 3,599,811$ 4,705,630$ 3,631,302$ 6,345,136$ 8,481,257$ 10,193,342$ 13,849,449 $ The rapid rise in energy and fuel pri
ces put tremendous pressure on the power utility during FY 2023. These increases negatively impacted the regional wholesale price of electricity, since natural gas is a cost factor in the production of electric power across the region, which effects wholesale prices in the California Independent System Operations area. While the power utility did implement a Power Cost Adjustment of 2.5¢/kWh on March 1, 2023, and an additional 0.5¢/kWh on April 1, 2023, these cost adjustments were forecasted to be insufficient to generate sufficient net income in the FY 2023 to make the original forecasted $18 million General Fund Transfer for FY 2024 as required by the City’s Charter.

FISCAL YEAR 2023 ACCOMPLISHMENTS
While it is critically important that th e City maintain strong fiscal health and address its multiple infrastructure- related issues,
it must also take time to acknowledge positive improvements. Examples of FY 2023 accomplishments include:
• Adoption of a balanced budget for the eleventh consecutive year; maintained an IRS Section 115 trust for future pension obligations and other postemployment benefits; and maintained the City’s AAA issuer credit rating with Standard & Poor’s and AA+ with Fitch rating agency, consistent with the City Council’s goal to maintain fiscal responsibility and stability;
• Received $31.2 million in local sales tax revenue from Measure I, and provided $10.3 million to the Pasadena Unified School District to protect and strengthen our public schools; • Completed recruitment of a new City Manager;
• Managed the development, approval and/or implementation of City Council policy initiatives and directives such as affordable housing, accessory dwelling units, violence prevention programs, cannabis business regulations and the Caltrans 710 stub relinquishment;
• Successfully completed relinquishment of the 710 freeway right-of-way, including $5 million for required maintenance from Caltrans and secured $230.5 million in Metro Measure R funding for mobility improvements along the corridor;

CITY OF PASADENA LETTER OF TRANSMITTAL
Annual Comprehensive Financial Report | June 30, 2023 xi • Began the process for reconnecting the 710 corridor area into the greater Pasadena fabric by initiating meetings by the City Council-appointed Citizen Committee, charged with visio ning and overseeing this process;
• After the appointment of th e PRHB, established as a result of the November 2022 passage of Measure H, provided support and guidance for the initiation of the Board’s work; • Developed and executed the “Authentically Yours, Pasadena” holiday shopping campaign in support of Pasadena’s local business community. The Convention and Visitors Bureau partnered with the City on the campaign. The campaign was shared on social media, generating over 30,000 impressions and nearly 1,800 shopping totes were given to loca l shoppers. Small businesses reported strong sales during the holiday season and the addition of new customers;
• Innovation and technology cluster in Pasadena continued to thrive and demonstrate strength as a tech hub in Southern California. New leases and existing expan sions include Miso Robotics, Motive Space Systems, Xencor, and Innova Medical Group;
• The Pasadena Outreach Response Te am (PORT) comprised of a case manager (social worker), a public health nurse, a firefighter, and an outreach worker from the Union Station Homeless Services utilizes a street-based approach that engage s, assesses, and provides links to housing opportunities for those experiencing chronic homelessness, severe mental illness, substance use disorders, physical disabilities, and complex chronic health conditions. The Port Team lin ked people experiencing homelessness to 110 total clinical appointments and made 153 average monthly points of contact and outreach; • The Homeless Outreach Psychiatric Evaluation (H.O.P.E). Team has addressed homelessness and mental health issues within our community over the past year through prevention, intervention, and enforcement strategies, while working with Municipal Assistance, Solutions and Hiring (MAS H), Housing Coordinators, the Pasadena Public Health Department, PORT1 & PORT2, Union Station, the LA County Department of Mental Health, and Caltrans, specif ically working with their Unified Homelessness Response Center. The people who occupy area encampments are transitory, have many barriers, and tend to temporarily cooperate by vacating the area, but will later return or move into nearby land. The H.O.P.E. Team, PORT Teams, MASH, and Caltrans are collaboratively moving forward with fu rther outreach and removal efforts along freeway embankments and other locations around Pasadena where people are taking shelter. The H.O.P.E. Team handled 4,604 incidents in 2022 to include 2,455 Foot Patrols; • Continued pursuit of both major and minor public works improvements to preserve and expand the City’s infrastructure and resources;
• Made substantial progress on affordable housing projects to address the widespread housing crisis; • Continued implementation of multi-year Enterprise Resource Planning system project that delivers real- time information to City management, integrates financial transactions, provides enhanced internal controls, and improves audit functions;
• Continued pursuit of Central Library’s assessment, mitigation plan, and seismic retrofit with infrastructure and programming improvements to ensure public safe ty, without disruption of library services to the community;
• Maintained American Pub lic Power Association’s prestigious Re liable Public Power Provider (“RP3”) “Platinum” designation for providing highest degree of reliable and safe electric services the RP3 designation recognizes public power utilities that demonstrate proficiency in four key disciplines: reliability, safety, workfo
rce development and system improvement; and
• Demonstrated ongoing support to Pasadena Water and Power’s commitment to invest in renewable energy and sustainable water resources in an operationally and fiscally responsible manner, approved a new Power Purchase Agreement for the purchase of renewable energy and capacity, and supported rate actions to recover the water and electric systems' increased operating and capital costs.

LETTER OF TRANSMITTAL CITY OF PASADENA
xii Annual Comprehensive Financial Report | June 30, 2023 • The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Pasadena for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2022. This was the 24 th consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annua l Comprehensive Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid fo r a period of one-year. The City believes that its current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

These noted accomplishments are just a sample of the hu ndreds of FY 2023 accomplishments, which are listed by department in the FY 2024 Adopted Operating Budget.

CONCLUSION
Under the leadership of the Mayor and City Council and with prudent financial management, the City of Pasadena has successfully addressed the unique challenges it has faced in the past, with no reduction in the quality and level of services provided to the community. The City has thri ved in many areas coming out of the pandemic. The FY 2023 Annual Comprehensive Financial Re port illustrates the City’s mission to deliver exemplary municipal service and responsiveness to our entire community, consistent with our history, culture, and unique character.

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CITY OF PASADENA
City Officials
CIT

Y COUNCIL
M a y o r V i c t o r M . G o r d o
Vice Mayor (District 2) Felicia Williams
Councilmember (District 1) Tyron A. L. Hampton
Councilmember (District 3) Justin Jones
Councilmember (District 4) Gene Masuda
Councilmember (District 5) Jessica C. Rivas
Councilmember (District 6) Steve Madison
Councilmember (District 7) Jason Lyon

APPOINTED OFFICIALS
C i t y M a n a g e r M i g u e l M a r q u e z
City Attorney Michele Beal Bagneris
C i t y C l e r k M a r k J o m s k y

EXECUTIVE LEADERSHIP TEAM
Assistant City Manager Nicholas Rodriguez
Assistant City Manager David Reyes
Assistant City Manager Brenda E. Harvey-Williams
Director of Finance Matthew E. Hawkesworth
Director of Housing William K. Huang
Director of Human Resources and Career Services Tiffany Jacobs-Quinn Director of Parks, Recreation &
Community Services (Acting) Lola Osborne
Director of Libraries & Information Services Tim McDonald Chief Information Officer Phillip Leclair
Director of Planning and Community Development Jennifer Paige Chief of Police Arthur Chute
Director of Public Health (Acting) Manual Carmona
Director of Public Works Tony Olmos
Director of Transportation Laura Cornejo
General Manager of Water and Power Sidney Jackson
Public Information Officer Lisa Derderian
Fire Chief Chad Augustin

OPERATING COMPANY EXECUTIVES
Chief Executive Officer,
Pasadena Center Operating Company Michael Ross
General Manager,
Rose Bowl Operating Company Jen Weiden
Executive Director/Chief Executive Officer,
Pasadena Community Access Corporation George Falardeau
xiv Annual Comprehensive Financial Report | June 30, 2023 Assistant City
Manager
NICHOLAS G.

RODRIGUEZ
City Manager
MIGUEL MÁRQUEZ
Assistant City
Manager
BRENDA E.

HARVEY-WILLIAMS
City Attorney/
City Prosecutor

MICHELE BEAL

BAGNERIS
Assistant City
Manager

DAVID REYES
Transportation

LAURA CORNEJO
Planning & Community
Development

JENNIFER PAIGE
Libraries &
Information Services

TIM MCDONALD
Police

EUGENE HARRIS
Human Resources

TIFFANY

JACOBS-QUINN
Fire

CHAD AUGUSTIN
Housing

WILLIAM HUANG
Rose Bowl
Operating Company

JENS WEIDEN
Pasadena Community
Access Corporation

GEORGE FALARDEAU
Parks, Recreation &
Community Services

LOLA OSBORNE
(ACTING)
Public Works

TONY OLMOS
Finance
MATTHEW E.

HAWKESWORTH
Public Health

MANUEL CARMONA
(ACTING)
Information
Technology

PHILLIP LECLAIR
Pasadena Center
Operating Company

MICHAEL ROSS
Citizens
of Pasadena
Mayor &
City Council
City Clerk

MARK JOMSKY
Water & Power

SIDNEY JACKSON

CITY OF PASADENA

ORGANIZATION CHART
June 30, 2023
Annual Comprehensive Financial Report | June 30, 2023 xv Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pasadena
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
xvi Annual Comprehensive Financial Report | June 30, 2023

CITY OF PASADENA

FINANCIAL SECTION
ANNUAL COMPREHENSIVE FINANCIAL REPORT | FISCAL YEAR ENDED JUNE 30, 2023 (This page intentionally left blank)
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Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Pasadena, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial st atements referred to above pres ent fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where ap plicable, cash flows thereof, and the respective for the year then ended in accordance with accounting principles generally accepted in the United States of America.

We did not audit the financial statements of the Pasadena Fire and Police Retirement System, a Fiduciary Pension Trust Fund of the City of Pasadena, which represents 14.94%, 20.71%, and 1.47%, respectively, of the assets, fund balance/net position, and revenues of the aggregate remaining f und information as of June 30, 2023. Those statements were audited by other auditors whose report has been furnished to us, and our opinion(s), insofar as it relates to the amounts included for the Pasadena Fire and Polic e Retirement System, a Fiduciary Pension Trust Fund of the City of Pasadena is based solely on the report of the other auditors.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 State ments section of our report. We are required to be independent of the City and to meet our other ethical responsib ilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2023, the City adopted new accounting guidance, GASB Statement No. 96, Subscription Based Information Technology Arrangements . Our opinion is not modified with respect to this matter.

To the Honorable Ma
yor and Members of the City Council
City of Pasadena, California
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to is sue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted a uditing standards and Government Auditing Standards will always detect a material m isstatement 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 generally accepted au diting standards 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 au dit 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 t he 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 City’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.

Required Supplementary Information
Accounting p
rinciples generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, and the required pension and other postemployment benefits schedules, a s listed on the table of contents, presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate xx Annual Comprehensive Financial Report | June 30, 2023 To the Honorable Mayo
r and Members of the City Council
City of Pasadena, California
operational, economic, or histori cal context. We have applied certain limited procedures to the required supplementary information in a ccordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the m ethods of preparing the information and comparing the information for consistency with management’s res ponses 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.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combini ng and individual fund financial statements and schedules (supplementary information) are presented for purpose s of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

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

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

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 28, 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 agreement s 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 p erformed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Brea, California
December 28, 2023
Annual Comprehensive Financial Report | June 30, 2023 xxi (This page intentionally left blank)
CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS
Annual Comprehensive Financial Report | June 30, 2023 1 MANAGEMENT’S DISCUSSION AND ANALYSIS
(Unaudited)
As management
of the City of Pasadena (City), we offer this na rrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2023 (FY 2023). We en courage readers to consider the information presented here in conjunction with additional information that has been furnished in the letter of transmittal, which can be found on pages vi- xii of this report.

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

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

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

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

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

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

The basic government-wide financial statements can be found on pages 16-19 of this report.

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

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

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA
2 Annual Comprehensive Financial Report | June 30, 2023 Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statem ents. By doing so, readers may better u nderstand the long-term impact of the government’s near-term financing decisions. Both the gove rnmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains 30 individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds stat ement of revenues, expenditures, and chan ges in fund balances for the General Fund, the Project Management Capital Project Fund, the General Debt Service Fund, and the Housing Successor Fund, all four of which are considered to be major funds. Data from the other 26 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.

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

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

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

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

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

The basic proprietary fund financial statements can be found on pages 24-31 of this report.

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

The basic fiduciary fu
nd financial statements can be found on pages 32-33 of this report.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2023 3 Notes to the Basic Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government- wide and fund financial statements. The notes to the basic financial statements can be found on pages 37-117 of this report.

Other Information

In addition to the basic financial statements and ac companying notes, this repo rt also presents certain required supplementary information (RSI) concerning budgetary practices and budget-to-actual comparisons for the general fund and the major special revenue funds. Additional RSI includes pension and Other Postemployment Benefits (OPEB) information on net pension and OPEB liabilities and plan contributions. RSI can be found on pages 121-139 of this report.

The combining statements referred to earlier in connection wi th nonmajor governmental funds and internal service funds presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 142-213 of this report. Combining statements of the discretely presented component units can be found on pages 218-221 of this report.

FINANCIAL HIGHLIGHTS

New Significant Accounting Standard Implemented

In FY 2023, the City adopted one new statement of financial accounting standards issued by the Government Accounting Standards Board (GASB), Statement No. 96, Subscription Based Information Technology Agreements (SBITA) (GASB 96).

GASB 96 provides guidance on the accounting and financia l reporting for subscription-b ased information technology arrangements (SBITAs) for government end users (governments) . This Statement (1) defines a SB ITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subs cription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows exce eded liabilities and deferred inflows by $1, 127.1 million at the close of the most recent fiscal year.

$1,015.1 million of the City’s net position reflect its net investme nt in capital assets (e.g., land, buildings, machinery, and equipment, less any related outstanding debts used to acquire those assets). The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Alth ough the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA
4 Annual Comprehensive Financial Report | June 30, 2023 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)
City of Pasadena’s Net Position
(in millions)
2023 2022 2023 2022 2023 2022 $ Change % Change
Other a s s ets 390.4$ 372.6 $ 588.3 $ 602.1 $ 978.7 $ 974.7 $ 3.9$ 0.4% Ca pi tal a s s ets 543.4 519.5 736.0 716.4 1,279.4 1,235.9 43.5 3.5% Total assets 933.8 892.2 1,324.3 1,318.5 2,258.1 2,210.7 47.4 2.1% Deferred outflows 192.8 96.9 34.3 14.8 227.1 111.8 115.3 103.2% Current l ia bil i ti es 107.6 133.6 60.2 48.1 167.8 181.8 (14.0) -7.7% Long-term debt* 187.2 193.3 290.1 303.2 477.3 496.5 (19.2) -3.9% Net pens ion li a bi l ity 480.1 252.0 95.2 50.3 575.3 302.3 273.0 90.3% Other noncurrent liabilities 89.7 103.7 8.8 14.9 98.5 118.6 (20.1) -16.9% Total liabilities 864.6 682.6 454.2 416.5 1,318.9 1,099.2 233.7 21.3% Deferred inflows 28.6 156.9 10.5 37.5 39.1 194.5 (155.4) -79.9% Net Position:

Net investment in
capi ta l as s ets 493.1 476.7 522.0 499.7 1,015.1 976.4 38.7 4.0% Res tri cted 86.1 81.5 93.3 109.5 179.5 191.0 (11.5) -6.0% Unres tri cted (345.9) (408.6) 278.5 270.0 (67.4) (138.6) 71.2 -51.4% Total net position 233.4 $ 149.6 $ 893.8 $ 879.2 $ 1,127.1$ 1,028.8 $ 98.4$ 9.6% * For both current and noncurrent portions
Governmental
Activities
Business-type
Activities Total Primary Government
The restricted portion of the City’s net position,
$179.5 million or 15.9% of the total net position, represents resources subject to externally imposed limitations for specific purposes. The remaining balance is a deficit in unrestricted net position of $67.4 million, or 6.0% of the total net position is for unrestricted us es in accordance with finance-related legal requirements. This deficit reflects liabilities and deferred inflows that exceed assets and deferred outflows, with a significant portion of the deficit attributable to the net pension liability, implementation of GASB 68, Accounting and Financial Reporting for Pensions , i.e., $188.0 million, and GASB 75, Other Postretirement Employment Benefits (OPEB), i.e., $16.3 million, upon the recognition of actuarial estimated future costs related to pension retirement and post-employment medical benefits.

During FY 2023, the primary government’s net position increased by $98.4 million, where approximately $83.8 million relates to the increase in governmental activities, and $14.6 million to the increase in the City’s business-type activities. The increase in the governmental activities reflects decrease in spending , in comparison to an increase in revenues. The increase in business-type activities is the continuance of strong trend in revenues in addition to a smaller increase in expenses.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2023 5 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)

City of Pasadena’s Changes in Net Position
(in millions)

Governmental Activities Business-type Activities Total Primary Government 2023 2022 $ Change % Change 2023 2022 $ Change % Change 2023 2022 $ Change % Change Revenues:

Progra m Revenues :

C har ges for ser v ic es 75 .0 $ 68.4 $ 6.7$ 9.8% 347.1$ 319.6 $ 27.5$ 8.6% 422.1$ 387.9 $ 34.2$ 8.8% Operating grants and contributions 108.9 80.7 28.1 34.8% 2.2 6.2 (4.0) -65.1% 111.0 86.9 24.1 27.7% Capital gra nts and contributions 22.2 10.2 12.0 118.2% 5.9 4.6 1.3 29.4% 28.1 14.7 13.4 90.7% General revenues:

Taxes:

Property taxes , levied for
genera l purpos e 84.3 79.1 5.2 6.5% - - - - 84.3 79.1 5.2 6.5% Sales taxes 76.9 74.4 2.5 3.4% - - - - 76.9 74.4 2.5 3.4% Utility user s' tax 32 .8 30.1 2.7 8.9% - - - - 32.8 30.1 2.7 8.9% Transient occupancy tax 18.7 14.7 4.0 26.9% - - - - 18.7 14.7 4.0 26.9% Other taxes 32.6 27.6 5.1 18.3% 6.7 6.2 0.6 8.9% 39.3 33.7 5.6 16.6% Other revenues 30.2 11.5 18.7 162.5% 2.6 (22.3) 24.8 -111.5% 32.8 (10.7) 43.5 -404.9% M isc ellaneous r ev enues 3 . 4 4.7 (1.3) -27.9% 2.9 10.6 (7.6) -72.2% 6.3 15.2 (8.9) -58.6% Tota l revenues 485.0 401.4 83.6 20.8% 367.3 324.8 42.5 13.1% 852.3 726.2 126.2 17.4% Expenses:

Ge ne ra l gove rnment 68.5 86.1 (17.6) -20.4% - - - - - 86.1 (86.1) -100.0% Publ i c s a fety 157.9 151.0 6.9 4.6% - - - - - 151.0 (151.0) -100.0% Transporta tion 49.5 44.8 4.8 10.7% - - - - - 44.8 (44.8) -100.0% Culture and leisure 50.4 48.5 1.9 3.9% - - - - - 48.5 (48.5) -100.0% Community development 59.4 62.7 (3.3) -5.3% - - - - - 62.7 (62.7) -100.0% Intere s t a nd other fi s ca l cha rge s 6.3 6.4 (0.1) -0.8% - - - - 6.3 6.4 (0.1) -0.8% Electric - - - - 239.4 196.7 42.7 21.7% 239.4 196.7 42.7 21.7% Water - - - - 61.7 61.5 0.2 0.3% 61.7 61.5 0.2 0.3% Other expenses 24.9 23.3 1.7 7.1% 34.9 29.9 5.0 16.9% 59.9 53.2 6.7 12.6% Total expenses 417.1 422.8 (5.7) -1.3% 336.0 288.1 47.9 16.6% 753.1 710.9 42.2 5.9% Increase (decrease) in net
position, before transfers 67.9 (21.4) 89.3 -417.5% 31.3 36.7 (5.4) -14.7% 99.2 15.3 83.9 549.1% Transfers 15.9 11.0 4.9 44.8% (15.9) (11.4) (4.6) 40.2% (0.1) (0.4) 0.3 -83.3% Increase (decrease) in net position 83.8 (10.4) 94.2 -902.5% 15.4 25.2 (9.8) -39.0% 99.2 14.7 84.4 574.0% Net position at beginning of year 149.6 160.0 (10.4) -6.5% 878.4 854.1 24.4 2.9% 1,028.0 1,014.1 13.9 1.4% Net position at end of year 233.4$ 149.6 $ 83.8$ 56.0% 893.8$ 879.2 $ 14.6$ 1.7% 1,127.1$ 1,028.8 $ 98.4$ 9.6%

Governmental Activities

Governmental activities net position increased by $83.8 million or 56.0%. Key elements of this increased are a combination of factors as follows:

The revenue components of governmental activities increased by $ 83.6 million or 20.8% from prior year revenues. The following categories illustrate the changes: charges for services increased by $6.7 million, operating grants and contributions increased by $28.1 million, capital grant and contributions increased by $12.0 millio n, property taxes increased by $5.2 million, sales taxes increased by $2.5 million, utility users’ tax increased by $2.7 million, transient occupancy tax increased by $4.0 million, other taxes increased by $5 .1 million and other revenues by $18.7 m illion. Miscellaneous revenues decreased by $1.3 million.

• Charges for services increase of $6.7 million includes changes in the following categories:
o $1.5 million increase in public safety charges due to police outside event revenues related to increased business activities and increased emergency medical services; o $2.2 million increase in transportation charges; and
o Smaller increases in community development, culture leisure, health and sanitation charges.

• Operating grants and contributions in creased by $28.1 million, primarily due to the recognition of American Rescue Plan Act (ARPA) revenue during the current fiscal year.

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA

6 Annual Comprehensive Financial Report | June 30, 2023 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)

• Capital grants and contributions increased by $12.0 millio n, primarily due to the recognition of ARPA revenue and other reimbursement type grant funds for Public Work s and Transportation during the current fiscal year.

The increase of capital grant monies is related to the increase in capital grant-type expenses.

• Property taxes increased by $5.2 million due to appreciation of property value in Pasadena.

• Sales taxes increased by $2.5 million. Regular sales tax increased by approximately $0.7 million, and Measure I sales tax increased by $1.7 million due to increased spending activity within City jurisdiction during the current fiscal year.

• Transient occupancy taxes increased by $4.0 million, as the hospitality industry rebounded.

• Other taxes increased by $5.1 million mainly due to the following categories:
o $1.3 million increase in construction taxes, as the city experienced increase in construction; o $2.0 million increase in business license taxes; and
o $1.0 million increase in franchise taxes.

• Other revenues increased by $18.7 million, primarily due to more favorable investment performance during the current fiscal year. The breakdown is as follows:
o $13.6 million increase in net change in investment fair value; and o $2.6 million increase in investment earnings.

• Miscellaneous revenues decreased by $1.3 million. The decrease was related to reduced interest revenue, where in FY 2022, large collections of interest penalty inflated the FY 2022 balance. Other factors include a large reduction in the inclusionary housing fund and a reduction in filming permits and rental fees.

The expense components of governmental activities decreased by $5.7 million or 1.3%. The changes in expenses were:
general government decreased by $17.6 millio n, public safety increased by $6.9 mil lion, transportation increased by $4.8 million, culture and leisure increased by $1.9 million, and community developmen t decreased by $3.3 million. The other categories have a net increase of $1.6 million.

• General government expense decrease is primarily due to the decrease of $9.2 million in City contribution to the Rose Bowl Operating Company for debt service ob ligations. The City made Rose Bowl’s debt service payments in FY 2021 and FY 2022 because of revenue lo sses due to COVID-19. Additionally, there was a $18.4 million decrease in general liability expenses. These decreases were offset by other expense increases.

• Public safety expense increase is mainly due to increases of $6.2 million in personnel.

• Transportation expense increase is mainly due to increases in capital project activity, causing an increase of $3.0 million in personnel and $2.1 m illion in services and supplies.

These increases were offset by other expense
decreases.

• Community development expense decrease is primarily due to the $3.1 million decrease in affordable housing program expenses.

• Other expenses increase is mainly due to increases of $1.0 million in personnel and $1.5 million in services and supplies. These increases were offset by other expense decreases.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2023 7 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)

Charges for services

15.37%
Operating grants and
contributions

22.30%
Capital grants and
contributions

4.55%
Property taxes,
levied for general
purpose

17.27%
Sales taxes

15.75%
Utility users' taxes

6.71%
Transient occupancy taxes

3.82% Business license taxes

1.61%
Other taxes

5.07%
Motor vehicle in-lieu

4.94%
Other intergovernmental,
unrestricted

0.26%
Use of money -
investment earnings

0.99%
Use of property -
lease activity

0.34%
Net change in fair value of
investments

0.34%
Miscellaneous revenues

0.69%
Other:

2.61%
Revenues by Source - Governmental Activities
$0
$50
$100
$150
$200
Program Revenues and Expenses - Governmental Activities (in millions)
Program Revenue
Expenses
MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA
8 Annual Comprehensive Financial Report | June 30, 2023 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)
Business-type Activities
Business-type activities increased the City’s net position by $14.6 million. Key elements of this year’s increase are as follows:
• Net income of the Light and Power, Water, Off-Street Pa rking, and nonmajor enterprise funds were $12.0 million, $5.8 million, $0.6 million, and $3.1 million losses, respectively. • Electric charges for services increased $27.0 million or 11.5% from the prior fiscal year. Majority of the increase was due to an increase in retail revenue.
• Electric expenses increased by $42.7 million or 21.7% from the prior year. The increase in expense was primarily due to increase in power purchased to support to high energy demand. • Water charges for services decreased by $4.7 million or 6.5% over the prior year mainly due to a decrease in water sales because of water conservation.
• Water expenses decreased by $0.2 million or 0.3% from the prior year mostly due to decrease in water demand, led to decrease in water purchased.
• Off-Street Parking operating revenues increased by $2.5 m illion or 22.4%, and expenses increased $2.3 million or

21.3% mostly due to resuming administering parking enforcement post suspension of enforcement due to the pandemic.
• Off-Street Parking net gain of $0.6 millio n was primarily the result of recoveri es. As the public resumed activities, the city experienced increased parking activity as well as increased revenues in previously suspended parking enforcement.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2023 9 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)

$0
$50
$100
$150
$200
$250
$300
Program Revenues and Expenses - Business-type Activities (in millions)
Program Revenues
Expenses
Charges for
services

92.2%
Operating grants and
contributions

0.6%
Capital grants and
contributions

1.6%
Franchise taxes

1.8%
Investment earnings

1.7%
Lease revenues

0.1%
Net change in fair value
of investments
-1.2%
Miscellaneous
revenues

0.8%
Revenue by Sources - Business-type Activities
MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA
10 Annual Comprehensive Financial Report | June 30, 2023 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

City of Pasadena’s Governmental Funds
Summary Statement of Revenues, Expenditures and
Changes in Fund Balances (in millions)
2023 2022 $ Change % Change
Revenues:

Taxes 245.3 $ 225.9 $ 19.4$ 8.6%
Licenses and permits 17.1 15.3 1.8 11.6%
Intergovernmental 158.7 106.2 52.5 49.5%
Cha rge s for s e rvi ce s 47.8 43.5 4.3 9.8%
Fines and forfeitures 5.4 4.2 1.2 27.9%
Inv estment earnings 4.7 2.2 2.5 111.5%
Net c hange in fair v alue of inv estment s (1 .6 ) (14.8) 13.2 -88.9% Lease revenues 5.2 4.5 0.7 15.4%
Miscellaneous revenues 6.6 8.2 (1.6) -19.3%
Contributions 1.5 3.1 (1.6) -50.7%
Total revenues 490.6 398.3 92.3 23.2%
Expenditures:

Current:

Genera l government 58.6 63.8 (5.2) -8.1%
Publ i c s a fety 159.3 147.6 11.7 8.0%
Transportation 47.5 40.8 6.7 16.4%
Utility 0 .1 0.1 0.0 35.0%
Sa nita ti on 5.9 6.0 (0.1) -1.9%
Health 18.9 16.5 2.4 14.8%
Culture and leisure 48.3 45.9 2.4 5.2%
Community development 53.1 55.7 (2.6) -4.6%
Capital outlay 40.3 25.0 15.3 61.2%
Debt service:

Principal retirement 5.8 5.4 0.4 7.8%
Interest 6.2 6.4 (0.2) -2.8%
Lea s e pa yments 1.2 1.1 0.1 12.2%
Subscription payments 0.7 - 0.7 -
Int er est - leases and subsc r ipt ions 0.1 - 0.1 -
Total expenditures 446.1 414.3 31.8 7.7%
Excess (deficiency) of revenues over
(under) expenditures 44.5 (16.0) 60.5 -377.8%
Other financing sources (uses):

Transfers in 77.5 73.5 4.0 5.4%
Transfers out (60.9) (65.0) 4.1 -6.3%
Tra ns fer to component uni t (0.1) (0.4) 0.3 -83.3% Leases issued 0.8 0.1 0.7 738.0%
Subsc r ipt ions issued 0.9 - 0.9 -
Total other financing sources (uses) 18.2 8.2 10.0 122.1% Net change in fund balances 62.7 (7.8) 70.5 -903.4% Fund balances at beginning of year 268.2 276.1 (7.9) -2.9% Fund balances at end of year 330.8$ 268.2 $ 62.6$ 23.3% Governmen
tal Funds
The focus of the City’s governmental funds is to provide information on near-ter m inflows, outflows, and balances of spendable resources. Such information is useful in assessin g the City financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2023 11 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS (Continued)

Governmental Funds report the differenc e between their assets and liabilities as fund balance, which is divided into nonspendable, restricted, committed, assigned, and unassigned portions. City Council may commit a portion of the fund balance by formal action, per the current policy of increasing the commitment up to 20% of the General Fund annual appropriations. The 20% is comprised of 15% General Fund Emergency Contingency and 5% General Fund Operating Reserve.

On September 11, 2023, the City Counc il committed the full 15% or $43.9 million for the FY 2023 Emergency Contingency Reserve and up to 5% or $14.6 million for Operating Reserve.

At the end of FY 2023, the City’s governmental funds reported combined ending fund balances of $330.8 million, an increase of $62.6 million in comparison with the prior year. The nons pendable fund ba lance of $15.9 million represents assets generated by prepayments, permanent trust fund balances and re ceivables in funds, net of a llowances. The restricted fund balance of $81.0 million represents resources that are subject to externally enforceable legal restrictions, such as the restrictions on the use of special revenue funding and capital improvement contracts. The committed fund balance of $173.7 million represents the use of resources constrained by limitations the City imposes upon itself through decisions made by the City Council. The assigned fund balance of $58.8 million designa tes the portion of fund balance that reflects the City’s intended use of resources. The unassigned fund balance of $1.4 million represents the residual amount after the nonspendable, restricted, committed, and assigned balances have been identified of total fund balance.

Total expenditures increased by $31.8 million or 7.7%. These ex penditure categories increased: public safety $11.7 million, transportation $6.7 million, culture and leisure $2.4 million, health $2.4 million, and capital outlay $15.3 million. These expenditure categories decreased: general government by $5 .2 million and community develo pment by $2.6 million. The other categories have a net increase of $1.0 million. In additi on, due to the implem entation of GASB 87 and 96, lease and subscription payments, as well as the corresponding interest expenditures are presented under debt service. Prior to FY 2022, these expenditures were presented within the governmental funds’ function.

• General government expenditure decrea se is mainly due to the $9.3 million de crease in City operating expenses related to the contribution to the Rose Bowl’s debt service. The decrease is offset by the $2.6 million increase in personnel costs, $1.0 million increase in service and supplies, and $0.4 million increase in internal service fund costs.

• Public safety expenditure increase is due to several factors: expenses related to other contract services, such as additional law enforcement services, supplemental traffic control services for the New Year’s parade in 2023 in comparison to 2022. An overall increase in personnel and benefit, services and supplies costs contributed to the overall increase for FY 2023.

• Transportation expenditure increase is mainly due to the increase in general liability, personnel, and benefit costs.

• Culture and leisure expenditure increase is due to the increase of $1.0 million in personnel costs. Additionally, there was an increase of $1.6 million in other contract services, payable to Pasadena Center Operating Company, for their portion of the transient occupancy taxes in FY 2023.

In FY 2023, the net governmental fund transfers in increased by $8.1 million ma inly due to an increase of $4.9 million in transfers from the General Fund to the Project Management Fund, and an increase of $0.5 million in transfers from the General Fund to nonmajor governmental funds.

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA

12 Annual Comprehensive Financial Report | June 30, 2023 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS (Continued)

The General Fund is the chief op erating fund of the City. At the end of FY 2023, total fund balance equaled $164.6 million, versus $106.2 million in the prior year. The fund balance increased by $58.4 million or 55.0%, during FY 2023. Key factors for this change are as follows:

General Fund total revenues increased by $64.1 million or 21.9% mainly due to increases in four categories of revenue and decrease in one category, as explained below:

• Taxes increased by $19.5 million primarily due to an increase of $5 million in property taxes. Sales tax increased by $2.4 million, utility users’ tax increased by $2.7 million, and transient occupancy tax revenue increased by $4 million.

Streetlight & traffic signal tax increase d by $1.4 million. Business license tax increased by $2.0 million. The other taxes had a net increase of $2.0 million.

• Intergovernmental revenues increased by $35.3 million, prim arily due to an increase of $26.7 million received in ARPA funding and an increase of $1.1 million in motor vehicle in-lieu tax. There was also an increase of $5.0 million in Caltrans highway construction, and an increase of $1 .6 million from the California Arts Council grant revenue.

Other intergovernmental revenue increased by $0.9 million.

• Charges for services increased by $2.9 million, primarily due to a $1.0 million increase in police and fire assignments for Rose Bowl Stadium events, an increase of $0.8 million in paramedic emergency medical aid response, an increase of $0.6 million in Department of Transportation-related services, and an increase of $0.6 million in city-wide internal service charges in cost allocation and services to the Power and Fleet Maintenance funds.

• Net change in fair value of investments increased by $4.9 million due to a more favorable investment activity during the fiscal year.

• Miscellaneous revenues decreased by $1.1 million, primarily due to a decrease of $0.4 million in Collections-Interest charges, a $0.3 million decrease in Fire and Rescue services, a $0.2 million de crease in Filming Permits & Rentals, and a $0.2 million decrease in Claim Settlements.

General Fund total expenditures increased by $13.5 million or 5.0% primarily due to:

• Public safety increased by $12.1 million in personnel and internal service charges in fleet and equipment.

• Capital outlay increased by $2.5 million for a property purchase and for new lease and subscription assets.

• Transportation increased by $2.3 million due to the same causes mentioned above in overall governmental funds on the increased internal costs for general liability, workers’ compensation, and benefits.

• The overall expenditure increase is offset by a $5.1 million decrease in general government expenditures.

The Housing Successor Fund has a fund bal
ance of $1.0 million, which is a decrease of $0.9 million from the prior year. The key factors contributing to this decrease are as follows:

• Total revenue increased by $0.4 million mainly from loan repayments.

• Total expenditures decreased by $1.3 million, primarily due to the Bridge Housing affordable housing project.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2023 13 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS (Continued)

Proprietary Funds

The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Unrestricted net position of the Light an d Power Fund at the end of the year amo unted to $223.4 million and those for the Water, Off-Street Parking Fund, and nonm ajor enterprise funds amou nted to $44.4 million, $2.8 million, and $7.8 million respectively. The total operating net income/(loss) before transfers and contributions for each fund was $20.9 million, $5.6 million, $0.8 million, and ($1.9) million, respectively.

Light and Power operating revenues increased by $29.3 million or 12.9% from prior year. The increase was primarily due to an increase of 25.7 million in retail revenue due to a combination of increase in re tail sales and the implementation of the Power Cost Adjustment ("PCA") to manage the increase in energy costs.

Total operating expenses increased by $41.7 million,
the majority of increase was due to higher energy costs and stronger energy demand. $23.0 million increase in power purchase expenses, $7.0 million increase in gas expenses, $6.0 million in customer and commercial expenses and $4.0 million in depreciation and amortization expenses, and $2.0 million in other production costs.

Water Fund operating revenues decreased by $4.4 million or 6.3% from prior year ma inly driven by the lower retail water sales. The decrease resulted from th e continued Voluntary Level 2 Water Supply Shortage Plan and the ongoing water conservation effort, partially offset by the second of two water rate increases approved and implemented in FY 2023. Water Fund operating expenses decreased by $0.4 million or 0.6% from the prior year due to the lower purchased water costs as a result of lower water demand.

The Off-Street Parking Fund had a net gain of $0.6 million in FY 2023, as compared to $1.4 million net gain in FY 2022. This is primarily due to the increase of parking revenues from all parking structures and resuming parking enforcement and citations.

Implementation of GASB 68 resulted in showing a Net Pension Liability in the Proprietary Funds. At June 30, 2023, the net pension liability is $63.6 million, $21.8 million, $1.3 million, and $8.5 million for Light and Power, Water, Off-Street Parking, and nonmajor enterprise funds, respectively.

Implementation of GASB 75 resulted in showing a Net OPEB Liability in the Proprietary Funds. At June 30, 2023, the net OPEB liability is $8.9 million, $4.3 million, $0.06 million, and $2.2 m illion for Light and Power, Wate r, Off-Street Parking, and nonmajor enterprise funds, respectively.

MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF PASADENA
14 Annual Comprehensive Financial Report | June 30, 2023

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City of Pasadena’s investment in capital assets for its go vernmental and business-type activities as of June 30, 2023 amounts to $1,368.6 million, net of accumulated depreciation/amortization. This investment in capital assets includes land, buildings, improvements, equipment, infrastructure, construction-in-progress, and intangible assets. Infrastructure assets are items that are normally immovable such as roads, bridges, drainage systems, and other similar assets. The net increase in the City of Pasadena’s investment in capital assets for the current fiscal year was $24.4 million, a $18.0 million increase for governmental activities and $6.4 million increase for business-ty pe activities. There is a restatement for the FY 2022 ending balance/FY 2023 beginning balance of subscription assets due to the retrospective application required for prior years under GASB 96 by restating financial statements for all periods presented.

City of Pasadena’s Capital Assets
(Net of depreciation/amortization, in millions)
2023 2022 2023 2022 2023 2022
La nd 87.5$ 87.3$ 14.7$ 14.7$ 102.2$ 102.0$ Construction in progress 54.1 31.4 74.6 82.0 128.7 113.4 Buildings and improvements 148.0 153.7 68.7 71.6 216.7 225.2 L ease asset - buildings 2 .9 3.4 2.2 1.3 5.1 4.7 Machinery and equipment 36.2 34.7 659.9 643.5 696.1 678.2 L ease asset - equipment 0 .6 0.5 - - 0.6 0.5 Subs cri pti on a s s ets 7.6 7.5 * 5.2 5.8 * 12.8 13.4 * Infrastructure 206.4 206.8 - - 206.4 206.8
Total 543.3$ 525.3 $ 825.3 $ 818.9 $ 1,368.6 $ 1,344.2 $ Total Primary GovernmentGovernmental Activities Business-type Activities * June 30, 2022 ending balance was restated to reflect the addition of subscription assets due to the implementation of GASB 96.

Major capital asset-related
events during FY 2023 included the following:
• A variety of street maintenance and construction, technology, traffic control, parks and landscape projects continue city-wide. The city spent $43.0 million on capital projects in governmental activities. Costs for projects not yet completed are shown as construction-in-progress (CIP). Gove rnmental activities CIP as of June 30, 2023 is $54.1 million and $74.6 million for business-type activities. • In the area of technology upgrade projects, the city sp ent $1.9 million. Of this amount, $0.7 million is for building security management, $0.4 million toward replacement of communication e quipment, $0.7 million for Police CAD and RMS replacement, and $0.1 million for City fiber network expansion. • Public Works acquired eight (8) cranes for Solid Waste for $3.2 million, Police acquired a mobile comment center van for $1.8 million, Fire spent $1.0 million on fire apparatus, and the City purchased 47 EVs for various departments for $1.2 million.
• Improvement of city-owned facilities continues. Nearly $7.3 million was spent in city buildings for preventive maintenance and repair, $8.8 million in parks and landscape projects, and $8.3 million for street improvements. • Major capital improvements for Transportation includes: $7.4 millio n to construct Union Street cycle track and $1.4 million for the Cordova Street project.
• As of June 30, 2023, the busin ess-type activities net assets amounted to $825.3 million, an increase of $6.4 million over the prior year.

CITY OF PASADENA MANAGEMENT’S DISCUSSION AND ANALYSIS

Annual Comprehensive Financial Report | June 30, 2023 15 CAPITAL ASSETS AND DEBT ADMINISTRATION (Continued)

• Pasadena Water and Power (PWP) utility plant net assets am ounted to $778.0 million, an increase of $6.0 million.

During the fiscal year, the City spent $53.0 million on various water and power projects and moved $60.4 million into completed projects.

• Some of the major water projects that completed are: $3.4 million on insta llation of new and replacement water distribution mains at various locations throughout the City; $3.1 million on the installation or replacement of new or worn-out water meters, services, mains, fire hydrants and $0.5 million on enhancement and upgrade costs for the new Customer Information and Utility Billing System (CIS).

• Some of the major power projects that completed are: $19.9 million on GT-1 & GT-2 Upgrades and Replacement; $3.5 million to install a new 34.5KV sub transmission system circuit from PWP’s Oak Knoll Substation to PWP’s Santa Anita Receiving Station and $3.2 million to replace of 34-20 sub transmission Circuit between Santa Anita and Chester substations.

Additional information on the City’s capital assets can be found in Note 6 on pages 60-63 of this report.

Long-Term Debt

At year-end, the City has a number of debt issues outstanding. These include $130.5 million of taxable pension bonds, $288.6 million of revenue bonds, $48.4 million of certificates of participation, $5.0 million in loan payable and $4.3 million of notes payable. Long-term debt decreased by a net amount of $19.2 million as a result of normal scheduled principal maturities and refunding of debt. The City was assigned an AAA issuer rating by Standard and Poor’s and AA+ rating by Fitch Rating Agency.

City of Pasadena’s Outstanding Long-Term Debt
(in millions)

Governmental Activities Business-type Activities
2023 2022 2023 2022 2023 2022
Long-term debt:

Notes payable 4.3 $ 4.6 $ - $ - $ 4.3 $ 4.6 $ Bonds payable 130 133 289 301 419 434 Certificates of participation 48 51 - - 48 51 Loan payable 4 5 1 2 5 7 Total long-term debt 187$ 193 $ 290 $ 303 $ 477 $ 496 $ Total Primary Government

Additional information on the City’s long-term debt can be found in Note 10 on pages 72-84 of this report.

The City reports one item of significant economic importance in its subsequent event Note 24 on page 117.

REQUEST FOR INFORMATION

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

FINANCIAL SECTION CITY OF PASADENA
(AMOUNTS EXPRESSED IN THOUSANDS)
16 Annual Comprehensive Financial Report | June 30, 2023 Statement of Net Position
June 30, 2023
Total Aggregate
Governmental Business-t ype Primary Component
Activities Activities Government Units
Assets:

Current assets:

Cash and investments 295,547$ 350,388$ 645,935$ 53,163$ Accounts receivable, net 53,583 44,294 97,877 6,141 Notes receivable, net 13,505 74 13,579 - Inventories 410 29,279 29,689 316
Lease receivable 760 433 1,193 18
Prepaids and other assets 1,995 944 2,939 356 Due from component units 1,977 11 1,988 - Due from City - - - 911
Due from other governments 6 - 6 -
Deposits - - - 12
Restricted - cash and cash investments - - - 8,468 Total current assets 367,783 425,423 793,206 69,385 Noncurrent assets:

Restricted - cash and investments 21,671 65,841 87,512 10,633 Due from City - - - 422
Lease receivable 959 750 1,709 272
Long-term prepaid and other assets - 6,989 6,989 - Capital assets:

Not being deprec
iated/amortized, net 141,634 89,251 230,885 2,426 Being depreciated/amortized, net 401,750 736,008 1,137,758 265,604 Total capital assets 543,384 825,259 1,368,643 268,030 Total noncurrent assets 566,014 898,839 1,464,853 279,357 Total assets 933,797 1,324,262 2,258,059 348,742 Deferred outflow of resources
Accumulated decrease in fair value of
hedging derivatives - - - 4,432
Debt refunding related 20,059 749 20,808 2,230 Pension related 166,676 31,997 198,673 1,780 OPEB related 6,032 1,555 7,587 -
Total deferred outflow of resources 192,767 34,301 227,068 8,442 (Continued)
Primary Government
The accompanying notes are an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 17 Statement of Net Position (Continued)
June 30, 2023

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

Current liabilities
Accounts payable and other ac c r ued liabilities 37,947 27,650 65,597 10,895 De posits 4,656 8,300 12,956 3,989 Due to com ponent units 9 - 9 - Due to pri ma ry gov ernment - - - 1,529 Due to other governments - - - - Advances - - - 100 Unearned rev enues 7,691 10,387 18,078 5,191 Com pensat ed absenc es 12,033 - 12,033 212 Insurance claims payable 36,038 - 36,038 - Lon g-term debt due within one year 6,008 11,656 17,664 12,013 L ease liabilit y 992 848 1,840 90 Subsc r iption liability 2 ,2 3 3 1,341 3,574 89 Total current liabilities 107,607 60,182 167,789 34,108 Noncurrent liabilities:

Der iv ativ e instr ument liability - - - 4,432 Lon g-term adv ances from pri ma ry government - - - 400 Net pension liabilit y 480,103 95,214 575,317 3,526 Net OP EB liabilit y 59,852 15,437 75,289 - Compensat ed absenc es 820 - 820 98 Insurance claims payable 28,825 - 28,825 - Lon g-term debt 181,198 278,394 459,592 324,701 Lease liability 2 , 6 4 9 1,578 4,227 11 Subscr iption liability 3 , 5 8 4 3,429 7,013 137 Total noncurrent liabilities 757,031 394,052 1,151,083 333,305 Total liabilities 864,638 454,234 1,318,872 367,413 Deferred inflow of resources
Debt refundin
g rel a ted - 1,697 1,697 3,699 Ser v ic e c onc ession agreement - - - 117 Lea s e rela ted 1,641 1,174 2,815 509 Pension related 7,944 2,776 10,720 88 OPEB rel ated 18,983 4,896 23,879 - Total deferred inflow of resources 28,568 10,543 39,111 4,413 Net Position:

Net inv estment in c apit al asset s 493,108 521,998 1,015,106 (12,391) Restricted:

Nonex pendable 1,433 - 1,433 - Ex pendable:

Communit y develo pment 12,318 - 12,318 - P ublic safety 5,049 - 5,049 - Capital projects 2,372 - 2,372 - Debt service 6,759 25,574 32,333 11,189 Stranded investments - 40,341 40,341 - Trans porta tion 41,852 - 41,852 - Contribution to General Fund - 14,544 14,544 - C ultur e and liter acy 3,322 - 3,322 - Other purposes 139 12,876 13,015 2,199 Air qualit y im provement 303 - 303 - Trust and loans 12,596 - 12,596 - Unrestricted (345,893) 278,453 (67,440) (15,639) Total net position 233,358$ 893,786$ 1,127,144$ (14,642)$ Primary Government

FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
18 Annual Comprehensive Financial Report | June 30, 2023 Statement of Activities
For the Fiscal Year Ended June 30, 2023

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

Governmental activities:

Genera l government 68,549 $ 13,551$ 39,812$ -$ Publ ic s a fety 157,931 15,285 4,423 - Tra ns porta ti on 49,533 18,761 19,315 16,302 Utilit y 1 3 5 - - - Sa ni ta tion 5,831 7,721 - 3,100 Hea l th 18,967 2,610 11,481 - Culture and leisure 50,399 840 1,331 2,821 Community development 59,411 16,276 32,514 - Interest and other fiscal charges 6,311 - - - Total governmental activities 417,067 75,044 108,876 22,223 Business-type activities:

Electri c 239,414 255,825 1,961 3,826 Wa ter 61,705 64,961 93 2,071 Refus e 21,509 12,309 107 - Pa rki ng 13,222 13,545 - - Telec ommunications 188 415 - - Total business-type activities 336,038 347,055 2,161 5,897 Total primary government 753,105 422,099 111,037 28,120 Aggregate Component Units 88,675$ 66,251$ 67$ 76$ General revenues:

Taxes:

Property, levied for general purpose
Sales
Utilit y
user s'
Transient occupancy
Construction
Business lic ense
Franchise
Other
Grants and contributions, unrestricted
Motor vehicle in-lieu, unrestricted
Use of money - investment earnings
Use of property - lease activ ity
Net c hange in fair v alue of inv est ment s
Miscellaneous revenues
Total general revenues
Transfers
Total general revenues and transfers
Changes in net position
Net position (deficit) at beginning of year, as restated Net position at end of year
Pro
gram Revenues

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

CITY OF PASADENA FINANCIAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 19

Total A ggregate
Governmental Business-t ypeP r i m a r y Component
Activities Activities Government Units
(15,186)$ - $ (15,186)$ - $ (138,223) - (138,223) - 4,845 - 4,845 - (135) - (135) - 4,990 - 4,990 - (4,876) - (4,876) - (45,407) - (45,407) - (10,621) - (10,621) - (6,311) - (6,311) - (210,924) - (210,924) - - 22,198 22,198 - - 5,420 5,420 - - (9,093) (9,093) - - 323 323 - - 227 227 - - 19,075 19,075 - (210,924) 19,075 (191,849) - (22,281)
84,327 - 84,327 - 76,899 - 76,899 - 32,790 - 32,790 - 18,675 - 18,675 11,300 3,969 - 3,969 - 7,841 - 7,841 - 3,749 6,713 10,462 - 17,048 - 17,048 4,029 1,276 - 1,276 137 24,111 - 24,111 - 4,817 6,568 11,385 1,004 1,652 441 2,093 16 (1,651) (4,449) (6,100) - 3,361 2,940 6,301 4,776 278,864 12,213 291,077 21,262 15,865 (15,933) (68) - 294,729 (3,720) 291,009 21,262 83,805 15,355 99,160 (1,019) 149,553 878,431 1,027,984 (13,623) 233,358$ 893,786$ 1,127,144$ (14,642)$ Net (Expenses) Revenues and
Changes in Net Position
Primary Government

FINANCIAL SECTION CITY OF PASADENA
(AMOUNTS EXPRESSED IN THOUSANDS)
20 Annual Comprehensive Financial Report | June 30, 2023 Balance Sheet
Governmental Funds
June 30, 2023
Special Revenue Ca pital Projects Debt Service
Nonmajor Total
Housing Project General Governmental Governmental
General Successo r Management Debt Service Funds Funds
Assets:

Pooled cash and investments 81,217$ 1,012$ 8,367$ -$ 159 ,640$ 250,236$ Accounts recei va bl e, net 31,471 9 4,779 - 17,085 53,344 L ease r eceiv able 3 7 5 - - - 716 1,091 Notes receivable 18,350 27,217 - - 61,269 106,836 Allowance for uncollectible notes
receivable (4,845) (27,217) - - (61,269) (93,331) Due from other funds 45,834 - - - - 45,834 Due from com ponent units 1,965 - - - - 1,965 Due from other gov ernments 6 - - - - 6 Prepaids and other assets 811 - - - 149 960 Restricted assets:

Cash and investments 12,194 - - - 2,645 14,839 C ash with fisc al a gent - - - 5 6,827 6,832 Total assets 187,378 1,021 13,146 5 187,062 388,612 Liabilities:

Accounts payable and accrued
liabilities 16,786 - 6,163 - 6,369 29,318
De posits 3,300 - - - 1,356 4,656
Due to other funds - - - - 8,826 8,826 Unearned rev enue 2,014 - 2,879 - 2,798 7,691
Total liabilities 22,100 - 9,042 - 19,349 50,491 Deferred inflow of resources:

Unavailable revenues 313 - 1,651 - 4,292 6,256
Lea s e rel a ted 354 - - - 693 1,047 Total deferred inflow of resources 667 - 1,651 - 4,985 7,303 Fund balances:

Nons pendable 14,316 - - - 1,582 15,898 Restricted 12,596 1,021 521 5 66,887 81,030 Commi tted 71,985 - 571 - 101 ,164 173,720
Assi gned 57,407 - 1,361 - - 58,768
Unassi gned 8,307 - - - (6,905) 1,402
Total fund balances 164,611 1,021 2,453 5 162 ,728 330,818 Total liabilities, deferred inflow of
resources and fund balances
187,378$ 1,021$ 13,146$ 5$ 187,062 $ 388,612$ The accompanying notes are an i
ntegral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 21 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
Amounts re ported for gov ernmental activ ities in the statement of net position are different because:

Total fund balances - governmental funds 330,818$
C apital asset s 843,212
Accumul a ted depreci a ti on (327,812)
L ease asset s 5,517
S
ubs cription as s ets 5,643
A
ccumula ted a mortiza tion (2,687) 523,873 Differences between ex pected and actual ex periences , assum pti on cha nges and net differences between projected and actual earnin gs and contributions subse quent to the measurement date for the pos tretirement benefits (pension and OPEB ) ar e reco gnized as deferred outflows of resources and deferred inflows of resources on the statement of net position.

Deferred outfl ows - pens i on rel a ted 123,312
Defer r ed outflows - OP EB r elated 5 ,4 9 1
D
eferred i nfl ows - pens i on rel a ted (5,350)
Deferred i nfl ows - OPEB rel a ted (17,278) 106,175 Unavailable revenues are not available to pay for current period ex penditures and , therefore , are deferred in the funds. 6,256
The substance of an advanced refundin g is r eported as deferrin g the difference and amortizin g it over future periods. 20,059
Long-term liabilities and deferred inflows of resources are not due , payable , or av ailable in the current period , and therefore , ar e not r eported in the funds.

Notes payable (4,322)
Pension bonds payable (130,525)
C er tific ates of par tic ipation (44,570)
Unamortized premi um (discount ) (3,807)
Accrued i nteres t payable on lon g-term debt , leases , and SBITA (1,592) Loa n payable (3,982)
L ease liabilit y (3,628)
Subscr iption liability (3,414)
Net OP EB liabilit y (54,474)
Net pension liabilit y (363,730) (614,044)
I
nternal service funds are used b y mana gement to char ge the cos ts of certa in a ctivities, suc h as e qui pment mana gement and self-insurance , to individual funds. The assets , deferred outflows of of resources , liabilities , and deferred inflows of resources of the internal service funds are included in gov ernmental activ ities in the statement of net position. (139,779) Ne
t position of governmental activities 233,358$
Capital assets used in governmental activities are not current financial resources and are therefore not reported in the governmental funds.

FINANCIAL SECTION CITY OF PASADENA
(AMOUNTS EXPRESSED IN THOUSANDS)
22 Annual Comprehensive Financial Report | June 30, 2023 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2023
Special Revenue Ca pital Projects Debt Service
Nonmajor Total
Housing Project General Governmental Governmental
General Successo r Management Debt Service Funds Funds
Revenues:

Taxes 234,258$ -$ -$ -$ 11 ,040$ 245,298$ Licenses and permits 3,731 - - - 13 ,337 17,068 Inter gov ernmental 71,161 - 10 ,504 - 77 ,053 158,718 Cha rges for serv ices 35,822 7 34 - 11 ,896 47,759 Fines and forfeitures 5,372 - - - - 5,372
Inv estment earnin gs2 ,127 92 - 6 2,429 4,654 Net chan ge in fair v alue of inv estments (640) - - - (998) (1,638) Lease r
evenues 1,349 - 423 - 3,419 5,191 Interest - leases (as lessor ) 2 - - - 4 6 Miscellaneous revenues 3,226 289 56 - 3,048 6,619 Contributions 33 - 677 - 817 1,527
Total revenues 356,441 388 11,694 6 122 ,045 490,574 Expenditures:

Current:

General gov ernment 58,369 - 225 7 10 58,611
Publ i c s a fety 156,122 - - - 3,217 159,339
Trans portation 24,290 - 5,716 - 17 ,465 47,471
Ut ility - - - - 135 135
Sani ta ti on - - - - 5,886 5,886
Health - - - - 18 ,944 18,944
Culture and leisure 33,419 - - - 14 ,851 48,270 Communi ty develo pment 8,683 1,260 - - 43 ,169 53,112 Capit al outla y 2,556 - 36 ,321 - 1,419 40,296
Debt service:

Pri ncipa l reti rement - - - 3,327 2,495 5,822 Interest 3 - - 3,992 2,225 6,220
Lea s e payments 644 - 42 - 548 1,234
Subscription payments 447 - 79 - 199 725
Inter est - leases and subsc r i ptions 33 - - - 21 54 Total expenditures 284,566 1,260 42,383 7,326 110,584 446,119 Excess (deficiency) of revenues over
(under) expenditures 71,875 (872) (30,689) (7,320) 11,461 44,455 Other financing sources (uses):

Tr ansfer s in 2 0 ,667 - 30 ,083 7,324 19,388 77,462 Tr ansfer s out (35,203) - (437) - (25,270) (60,910)
Transfe
r to com ponent unit (67) - - - - (67)
L eases i
ssued 5 0 6 - 11 - 321 838
Subsc r ipt ions issued 6 1 7 - 98 - 172 887 Total other financing sources (uses) (13,480) - 29 ,755 7,324 (5,389) 18,210 Net change in fund balances 58,395 (872) (934) 4 6,072 62,665 Fund balances at beginning of year 106,216 1,893 3,387 1 156,656 268,153 Fund balances at end of year 164,611$ 1,021$ 2,453$ 5$ 162,728 $ 330,818$ The accompanying notes are an i
ntegral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 23 Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
For the Fiscal Year Ended June 30, 2023

Amounts reported for gov ernmental activ ities in the statement of activ ities are different because:

Net change in fund balances - total governmental funds 62,665$ Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/ amortization expense. This is the amount by which depreciation/amortization expense exceeded capital outla y tha t wa s ca pi tal ized in the current peri od.

Ca pita l outl ay 36,417$
Depreciation/amortization expense (19,159) 17,258 The net effec t of v ar ious misc ellaneous t r ansac t ions inv olv ing c apit al asset s (i. e., sales, t r ade-ins, and donations) is to decrease net position.

L oss on sale of asset s (1,046)
Rev enues in the statement of activ ities that do not prov ide current financial resources are not reported as revenues in the funds.
(6,029)
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt inc r eases long-t er m liabilit ies in t he st at ement of net posit ion. Repay ment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the statementof net position. Also, gov er nmental funds r epor t the effec t of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred a nd a mortized in the s tatement of activiti es .

P r incipal paid on notes 317
Principal paid on pension bonds 2
,355
P r inc ipal paid on c er tific ates of par tic ipation 2,195 P r inc ipal paid on leases 1,234
P r inc ipal paid on subsc r iptions 725
P r inc ipal paid on loan 955 7 ,781
Bond deferred charges and similar items are recorded as expenditures in governmental funds when debt is first issued, whereas these pay ments are deferred and amortized in the statement of activ ities.

This amount is the net offset of the difference. (1,113) Internal service funds are used by management to charge the costs of certain activities, such as computing and communication, building maintenance, fleet maintenance, fleet replacement, benefits, workers' c ompensation, gener al liability , and 3 11 c all c enter , to indiv idual funds. The net r ev enue (ex pense) of certa i n a cti vi ti es of i nterna l s ervi ce funds i s reported wi th governmenta l a cti vi ti es . 10 ,175
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

Accrued interest on long-term debt, leases, and SBITA 29 Amortization of bond premiums and discounts and deferred amounts of refunding 247 Net change in deferred (inflows) and outflows of resources - pension related (4,132)
Net change in deferred (inflows) and outflows of resources - OPEB relaed (2,030) (5,886) Change in net position of governmental activities 83,805$

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

FINANCIAL SECTION CITY OF PASADENA
(AMOUNTS EXPRESSED IN THOUSANDS)
24 Annual Comprehensive Financial Report | June 30, 2023 Statement of Net Position
Proprietary Funds
June 30, 2023
Light Off-Street
and Power Water Parking
Assets:

Current assets:

C ash and inv est ment s 269,684$ 54,035$ 4 ,538$ Accounts recei va bl e, net 30,184 10,681 573
Notes receivable , res tri cted 74 - -
Due from com ponent units - - -
Inv entories 19,547 9,732 -
Lease r ec eiv able - 1 377
Prepaids and other assets 205 492 247
Total current assets 319,694 74,941 5,735
Noncurrent restricted assets:

Cash and investments 14,451 5,068 -
Cash and investments - stranded investments reserve 40,267 - - Cash with fiscal a gent 38 4,200 1,817
Total noncurrent restricted assets 54,756 9,268 1,817 Other noncurrent assets:

De posit with Inde pendent S yst em Operator (ISO ) 200 - - Prepaid lon g-term assets 6,789 - -
Lease r ec eiv able - 11 739
Ca pita l a s s ets , net of a ccumula ted
depreci a ti on/a morti za ti on 537,612 240,504 39,846 Total other noncurrent assets 544,601 240,515 40,585 Total noncurrent assets 599,357 249,783 42,402
Total assets 919,051 324,724 48,137
Deferred outflow of resources:

Bond refunding related 749 - -
Pension related 20,635 7,661 550
OPEB related 888 441 6
Total deferred outflow of resources 22,272 8,102 556 Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 13,731 10,714 1,471 De posits 1,608 434 209
Insurance claims payable - - -
Due to other funds - - -
Due to com ponent units - - -
Unearned rev enues 7,195 2,123 2
C ompensat ed absenc es - - -
Revenue bonds 7,485 2,795 900
Loan payable - - 476
Lease liabilit y 662 182 1
Subscr iption liability 997 327 -
Total current liabilities 31,678 16,575 3,059
Noncurrent liabilities:

Insurance claims payable - - -
C ompensat ed absenc es - - -
Net pension liabilit y 63,591 21,832 1,282
Net OP EB liability 8,868 4,323 63
Revenue bonds 185,945 72,857 18,600
Loan payable - - 992
Lease liabilit y 1,577 1 -
Subscri ption liabilit y 2,498 875 -
Total noncurrent liabilities 262,479 99,888 20,937
Total liabilities 294,157 116,463 23,996
Deferred inflows of resources:

Bond refundin g rel a ted 217 1,480 -
Lea s e rela ted - 12 1,086
Pension related 1,790 665 48
OPEB related 2,806 1,378 20
Total deferred inflows of resources 4,813 3,535 1,154 Net position:

Net inv estment in c a pit al assets 3 38,235 157,665 18,877 Restricted:

Debt service 14,489 9,268 1,817
Contribution /reimbursement to General Fund 13,000 1,544 - Stranded investments 40,341 - -
Other purposes 12,876 - -
Unrestricted 223,412 44,351 2,849
Total net position (deficit) 642,353$ 212,828$ 23,543$ The accompanying notes are an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 25 Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023

Governmental
Nonmajor Total Activities -
Enterprise Enterprise Internal
Funds Funds Service Funds
22,131$ 350 ,388$ 45 ,311$ 2,856 44 ,294 239 - 74 - 11 11 12 29 ,279 410
55 433 307 - 944 1 ,035 25,053 425 ,423 47 ,314 - 19 ,519 - - 40 ,267 - - 6 ,055 - - 65 ,841 - - 200 - - 6 ,789 - - 750 321 7,297 825,259 19,512 7,297 832 ,998 19 ,833 7,297 898 ,839 19 ,833 32,350 1 ,324,262 67 ,147 - 749 - 3,151 31,997 43,364 220 1,555 541 3,371 34 ,301 43 ,905 1,734 27 ,650 7 ,037 6,049 8 ,300 - - - 36 ,038 - - 37 ,009 - - 9 1,067 10 ,387 - - - 12,033 - 11 ,180 - - 476 1 ,194 3 848 13 17 1,341 - 8,870 60 ,182 93 ,333 - - 28,825 - - 820 8,509 95 ,214 116 ,373 2,183 15,437 5,378 - 277 ,402 - - 992 - - 1,578 - 56 3 ,429 1 ,209 10,748 394 ,052 152 ,605 19,618 454 ,234 245 ,938 - 1 ,697 - 76 1 ,174 594 273 2 ,776 2 ,594 692 4 ,896 1 ,705 1,041 10 ,543 4 ,893 7,221 521 ,998 17 ,096 - 25 ,574 - - 14 ,544 - - 40 ,341 - - 12 ,876 - 7,841 278 ,453 (156,875) 15,062$ 893,786 $ (139,779)$

FINANCIAL SECTION CITY OF PASADENA
(AMOUNTS EXPRESSED IN THOUSANDS)
26 Annual Comprehensive Financial Report | June 30, 2023 Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2023
Light Off-Street
and Power Water Parking
Operating revenues:

Utilities 2 5 5,8 25 $ 64,961$ -$
Off-s treet pa rki ng - - 13,545
Refuse collection - - -
Tel ecommunica tion - - -
Computing and communication services - - -
Building maintenance - - -
Fleet maintenance - - -
Employee benefits - - -
Insurance - - -
311 Ca l l Ce nte r - - -
Total operating revenues 255,825 64,961 13,545
Operating expenses:

Utilit y pr oduc tion 1 4 2 ,4 8 2 29,148 -
Utilit y t r ansmission and distr ibution 2 0 ,7 2 5 7,709 - Utilit y c ommer c ial and gener al 2 9 ,7 0 9 11,408 - Off-s treet pa rki ng - - 10,386
Refuse collection - - -
Tel ecommunica tions - - -
Computing and communication services - - -
Building maintenance - - -
Fleet maintenance - - -
Benefits - - -
Insurance - - -
311 Ca l l Ce nte r - - -
Depr eciation/amor tization 3 7,8 50 10,326 1,886 Total operating expenses 230,766 58,591 12,27 2
Operating income (loss) 25,059 6,370 1,273
Nonoperating revenues (expenses):

Taxes - - -
Intergov ernmental 1,961 93 -
Inv estment earnings 4,954 1,126 125
Net c hange in fair v alue of inv est ment s (3 ,8 7 3 ) (378) 4 Lease revenues - - 391
Int er est - leases (as lessor ) - - 7
Noncompliance forfeitures - - -
Othe r 1,454 1,485 -
Interes t expens e (7,278) (2,427) (969)
Gain (loss) on sale of assets (1,370) (687) -
Total nonoperating revenues (expenses) (4,152) (788) (442) Income (loss) before transfers and contributions 20,907 5,582 831 Capital contributions 3,826 2,071 -
Transfers in 5,311 - -
Transfers out (18,000) (1,894) (196)
Changes in net position 12,044 5,759 635
Net position (deficit) at beginning of year,
as restated 630,309 207,069 22,908
Net position (deficit) at end of year 642,353$ 212,828$ 23,543$ The accompanying notes are an i
ntegral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 27

Governmental
Activities -
Nonmajor Total Internal
Enterprise Enter prise Service
Funds Funds Funds
-$ 320,786$ - $
- 13,545 -
12,309 12,309 -
415 415 -
- - 20,073 - - 14,530 - - 15,728 - - 40,559 - - 36,673 - - 981 12,724 347,055 128,544
- 171,630 -
- 28,434 -
- 41,117 -
- 10,386 -
20,144 20,144 -
10 10 -
- - 17,372 - - 13,972 - - 10,717 - - 46,481 - - 25,516 - - 759 1,113 51,175 3,330
21,267 322,896 118,147
(8,543)
24,159 10,397
6,713 6,713 -
107 2,161 -
368 6,573 165
(202) (4,449) (13)
41 432 297
- 7 3
(430) (430) -
- 2,939 -
(2) (10,676) (66)
19 (2,038) 11
6,614 1,232 397
(1,929) 25,391 10,794
- 5,897 -
123 5,434 1,095
(1,277) (21,367) (1,715)
(3,083) 15,355 10,174
18,145 878,431 (149,953)
15,062$ 893,786$ (139,779)$
.

FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
28 Annual Comprehensive Financial Report | June 30, 2023 Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2023

Light Off-Street
and Power Water Parking
Cash Flows from Operating Activities:

Ca s h recei ved from cus tomers 253,875$ 65,941$ 13,880$ Ca s h pa yments to s uppl i ers for goods a nd s ervi ces (150,014) (32,630) (8,788) Ca s h pa yments to empl oyees for s ervi ces (34,832) (12,948) (1,147) Ca s h pa yments to other funds for s ervi ces (7,354) (4,153) - M isc ellaneous r ev enue 1 , 4 5 4 1,485 - Other payments - - - Net cash provided by (used for) operating activities 63,129 17,695 3,945 Cash Flows from Noncapital Financing Activities:

C ash t r ansfer s in 6 , 7 7 4 - - Ca s h trans fers out (18,000) (1,894) (196) Advances from other funds 110 - - Taxes received - - - Intergovernmenta l revenues 1,961 93 - Net cash provided by (used for) noncapital financing activities (9,155) (1,801) (196) Cash Flows from Capital and Related Financing Activities:

Acqui s i ti on a nd cons tructi on of ca pi ta l a s s ets (37,395) (17,030) - P r oc eeds fr om sale of c apit al asset s 4 1 17 - Proceeds from lease activities - 1 390 Pa yments on l eas es a nd s ubs cri pti ons (1,840) (750) (9) Capital contributions 4,097 1,449 - Pri nci pa l pa i d on debt (7,225) (2,725) (1,364) Interes t pai d on debt (8,487) (3,133) (969) Net cash used for capital and related financing activities (50,809) (22,171) (1,952) Cash Flows from Investing Activities:

Proceeds from sale of investments 2,598 - - P ur c hase of inv est ment s - (729) - Inves tment earni ngs 4,554 1,028 4 Net cha nge i n fa i r val ue of i nves tments (3,873) (378) 123 P ay ments r ec eiv ed fr om loans made to supplier s 1 , 3 6 6 - - Net cash provided by (used for) investing activities 4,645 (79) 127 Net increase (decrease) in cash and cash equivalents 7,810 (6,356) 1,924 Cash and cash equivalents at beginning of year 271,730 66,362 4,431 Cash and cash equivalents at end of year 279,540 60,006 6,355 Reconciliation of cash and cash equivalents to amounts
reported on the Statement of Net Position:

Ca s h and i nves tments 269,684 54,035 4,538 Restricted:

C ash and st r anded inv est ment s r eser v e 4 0 , 2 6 7 - - Cas h a nd i nves tments 14,451 5,068 - C ash wit h fisc al agent 3 8 4,200 1,817 Les s non-ca s h equi va l ents (44,900) (3,297) - Cash and cash equivalents at end of year 279,540$ 60,006$ 6,355$

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

CITY OF PASADENA FINANCIAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 29

Governmental
Activities -
Nonmajor Total Internal
Enterprise Enterprise Service
Funds Funds Funds
14,187$ 347,883$ 117,172$
(11,996) (203,428) (39,631)
(7,515) (56,442) (68,385)
- (11,507) -
- 2,939 -
(1,223) (1,223) -
(6,547) 78,222 9,156
123 6,897 1,095
(1,277) (21,367) (1,715)
- 110 -
6,713 6,713 -
107 2,161 -
5,666 (5,486) (620)
(3,288) (57,713) (5,481)
19 77 11
53 444 277
- (2,599) -
- 5,546 -
- (11,314) -
- (12,589) -
(3,216) (78,148) (5,193)
- 2,598 -
- (729) -
368 5,954 165
(202) (4,330) (13)
- 1,366 -
166 4,859 152
(3,931) (553) 3,495
26,062 368,585 41,815
22,131 368,032 45,310
22,131 350,388 45,311
- 40,267 -
- 19,519 -
- 6,055 -
- (48,197) -
22,131$ 368,032$ 45,311$

FINANCIAL SECTION CITY OF PASADENA
(AMOUNTS EXPRESSED IN THOUSANDS)
30 Annual Comprehensive Financial Report | June 30, 2023 Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2023
Light Off-Street
and Power Water Parking
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:

Opera ti ng i ncome (l os s ) 25,059$ 6,370$ 1,273$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreci a ti on a nd a morti za ti on 37,850 10,326 1,886 Miscellaneous and other revenue (loss) 1,454 1,485 - (Increa s e) decrea s e i n a ccounts recei va bl e (2,351) 485 335 Increase (decrease) in allowance for uncollectible accounts 1,580 495 - Increase (decrease) in due to other funds - - -
(Increa s e) decrea s e i n i nventori es (659) (1,559) - (Increase) decrease in prepaids and other assets 2,456 20 (12) Increase (decrease) in accounts payable and other
a ccrued l i a bi l i ti es (1,161) 45 528
Increa s e (decrea s e) i n unea rned revenue (1,193) - 2 Increase (decrease) in insurance claims pay able - - - Increase (decrease) in compensated absences - - -
Increase (decrease) in deposits payable 354 56 (40)
Increa s e (decrea s e) i n deferred i nfl ows - non-l ea s e rel a ted (12,429) (4,582) (461) (Increa s e) decrea s e i n deferred outfl ows (9,820) (3,550) (344) Increase (decrease) in net OPEB liability 385 199 (2) Increase (decrease) in net pension liability 21,604 7,905 780 Total adjustments 38,070 11,325 2,672
Net cash provided by (used for) operating activities 63,129$ 17,695$ 3,945$ Non-Cash Investing, Capital and Financing Activities
Ga i n (l os s ) on di s pos i ti on of ca pi ta l as s ets (1,411)$ (703)$ -$ Amortization of deferred charges (38) 83 -
Amortization of premiums (discounts) 532 644 - The accompanying notes are an integral part of these financial statements.

CITY OF PASADENA FINANCIAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 31

Governmental
Activities -
Nonmajor Total Internal
Enterprise Enterprise Service
Funds Funds Funds
(8,543)$ 24,159 $ 10,397 $
1,113 51,175 3,330
(1,223) 1,716 -
(297) (1,828) 60
- 2,075 18
- - 6,822 - (2,218) 98
24 2,488 527
744 156 (740)
(130) (1,321) -
- - (11,291) - - 666 1,761 2,131 -
(2,510) (19,982) (33,046)
(1,961) (15,675) (27,586)
127 709 92
4,348 34,637 59,810
1,996 54,063 (1,240)
(6,547)$ 78,222 $ 9,157 $
-$ (2,114)$ - $
- 45 -
- 1,176 -

FINANCIAL SECTION CITY OF PASADENA
(AMOUNTS EXPRESSED IN THOUSANDS)
32 Annual Comprehensive Financial Report | June 30, 2023 Statement of Net Position
Fiduciary Funds
June 30, 2023
Pension
(and Other
Employee Benefit) Priva te-Purpose
Trust Funds Custodial Funds Trust Funds
Assets:

Cash and cash equivalents 353,315$ 461$ 213$
Cash with fiscal agent - - 80
Short-term inves tments 4,877 - -
Receivables:

Accounts 2 705 -
Pendi ng trade s a les 1,854 - -
Interest 173 - -
Notes r ec eiv able - - 515
Allowanc e for unc ollec t ible not es r ec eiv able - - (515) Total receivables 2,029 705 -
Investments, at fair value:

Government and a gencies 15,344 - -
Corporate obli gat ions 2 0,865 - -
Fixed income mutual fund 13,798 - -
Rea l es tate 12,722 - -
Corporate stocks 39,934 - -
Total investments 102,663 - -
Ca pit al asset s, net - - 214
Total assets 462,884 1,166 507
Liabilities:

Accounts payable and accrued liabilities 59 855 -
Due to other governments - 10 -
Due to bondholders - 916 -
Pendi ng purchases 7,761 - -
Total liabilities 7,820 1,781 -
Net position/(deficit):

Res tri cted for pensions 455,064 - -
Res tri cted for l i bra ry equi pment - 309 -
Held in trust for other purposes - (924) 507
Total net position 455,064$ (615)$ 507$
.

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

CITY OF PASADENA FINANCIAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 33 Statement of Changes in Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2023

Pension
(and Other
Employee Benefit) Private Purpose
Trust Funds Custodial Funds Trust Funds
Additions:

Contributions:

Pl an members 15,570$ -$ -$ Property ta xes - - 6,250 Inter gov ernmental - 1,920 - Assessment revenue - 112 - Total contributions 15,570 2 ,032 6 ,250 Net investment income:

Inv estment earnin gs 3 4,291 5 - Interest 2 ,950 - - Dividends 1 ,617 - - Gross investment income 38,858 5 - L ess inv est ment expenses (581) - - Total net investment income 38,277 5 - Miscellaneous revenues - - 669 Total additions 53,847 2 ,037 6 ,919 Deductions:

Benefits paid to par tic ipants 3 4 ,9 7 7 - - Contributions to City - 33 - Progra m expens e - 2,895 - Interest ex pense - 55 - Statutory pass-through expenses - - 5,275 Administrative expenses 560 8 - Count y administ r at iv e expenses - - 903 Succ essor agenc y administr ativ e c ost allowance - - 648 Total deductions 35,537 2,991 6,826 Change in net position 18,310 (954) 93 Net position held in trust at beginning of year 436,754 339 414 Net position (deficit) held in trust at end of year 455,064$ (615)$ 507$ .
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NOTES TO THE

BASIC FINANCIAL

STATEMENTS

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

FISCAL YEAR ENDED JUNE 30, 2023
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CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June
30, 2023 37
Note Index
Note Index ..................................................................................................................................................................... 37 (1) Summary of Significant Accounting Policies .................................................................................... ................... 38 (A) Reporting Entity ....................................................................................................................................................... 38 (B) Basis of Accounting and Measurement Focus .......................................................................................................... 43 (C) Major Funds, Internal Service Funds and Fiduciary Fund Types .............................................................................. 45 (D) Cash Equivalents....................................................................................................................................................... 46 (E) Cash and Investments .............................................................................................................................................. 46 (F) Inventories ............................................................................................................................................................... 47 (G) Advances to Other Funds ......................................................................................................................................... 47 (H) Prepaids .................................................................................................................................................................... 47 (I) Restricted Cash and Investments ............................................................................................................................. 47 (J) Property Held for Resale .......................................................................................................................................... 48 (K) Capital Assets ........................................................................................................................................................... 48 (L) Leases ....................................................................................................................................................................... 48 (M) Subscription-Based Information Technology Agreements (SBITA) (GASB 96, new in fiscal year 2023)................... 49 (N) Insurance Claims Payable ......................................................................................................................................... 49 (O) Compensated Absences ........................................................................................................................................... 49 (P) Net Pension Liability ................................................................................................................................................. 50 (Q) Other Postemployment Benefits (OPEB) .................................................................................................................. 50 (R) Bond Premiums / Discounts / Issuance Costs .......................................................................................................... 50 (S) Deferred Outflows and Inflows of Resources ........................................................................................................... 50 (T) Fund Balance ............................................................................................................................................................ 50 (U) Property Taxes .......................................................................................................................................................... 51 (V) Use of Estimates ....................................................................................................................................................... 52 (W) Interfund Activities ................................................................................................................................................... 52 (X) Endowments ............................................................................................................................................................ 52 (Y) New and Future Accounting Pronouncements ........................................................................................................ 52 (2) Cash and Investments ........................................................................................................................................ 53 (3) Accounts Receivable .......................................................................................................................................... 58 (4) Notes Receivable – Primary Government ........................................................................................................... 59 (5) Due to and from Other Funds ................................................................................................... ......................... 59 (6) Capital Assets ................................................................................................................ .................................... 60 (7) Leases ........................................................................................................................ ....................................... 64 (8) Subscription-Based Information Technology Arrangements (SBITA) ................................................................... 68 (9) Deferred Inflows and Outflows .......................................................................................................................... 70 (10) Long-term Debt ................................................................................................................ ................................. 72 (11) Derivative Instruments ........................................................................................................ .............................. 84 (12) Fund Balance ..................................................................................................................................................... 87 (13) Restricted Net Position – Stranded Investments ................................................................................................. 89 (14) Accumulated Fund Deficits ................................................................................................................................ 90 (15) Excess of Expenditures over Appropriations ....................................................................................................... 92 (16) Pledged Revenue ............................................................................................................................................... 93 (17) Transfers ..................................................................................................................... ...................................... 94 (18) Self-insurance .................................................................................................................................................... 96 (19) Deferred Compensation Plan .................................................................................................... ......................... 98 (20) Pension Plans ................................................................................................................. ................................... 99 (21) Other Postemployment Benefits (OPEB) .......................................................................................................... 111 (22) Commitments and Contingencies ................................................................................................. ................... 116 (23) Restatement of Beginning Net Position ............................................................................................................ 117 (24) Subsequent Events ............................................................................................................. ............................. 117

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
38 Annual Comprehensive Financial Report | June 30, 2023 (1) Summary of Significant Accounting Policies
The basic financial statements of the Ci ty of Pasadena, California (City) have been prepared in conformity with
generally accepted accounting principles (GAAP) as applied to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant accounting polici es of the City are described below. All amounts, unles s otherwise indicated, are expressed in thousands of dollars; and some of the totals may not foot or cross foot due to rounding.
(A) Reporting Entity
The City was incorporated on June 19,1886 as a Charter City, which operates under a Council-City Manager form of government. The City is a municipal corporation governed by an elected mayor and seven (7) council members.

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

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

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

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

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

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 39 (1) Summary of Significant Accounting Policies (Continued)

(A) Reporting Entity (Continued)

Blended Component Units (Continued)

Pasadena Civic Improvement Corporation (PCIC)
PCIC was created on August 9, 1985, pursuant to the Non-profit Public Benefit Corporation Law of the State of California (Title 1, Division 2, Part 2 of the California Co rporations Code). At the request of the City, PCIC was organized for the specific and primary purpose of providing financial assistance to the City by acquiring or constructing property and appurtenances for and on behalf of the City. This is accomplished through the issuance of such financing instruments as certif icates of participation. The PCIC is a non-profit organization with three directors: Chief Executive Officer, Secretary/Financial Officer, and Assistant Executive Officer/Assistant Secretary. PCIC's financial data and transactions are bl ended with the debt service and capital projects funds.

The PCIC does not release a separate financial report.

Pasadena Housing Authority (Housing Authority)
Formerly known as the Local Housing Authority, the Pasadena Housing Authority administers the City's federally funded housing programs under contract with the United States Department of Housing and Urban Development (HUD). The Housing Authority’s purpose is to help provide safe and sanitary housing accommodations for citizens with low income. It is governed by the City Council and the City has operational responsibility for the Authority.

The Housing Authority’s financial data and transactions are blended as a special revenue fund. The Housing Authority does not release a separate financial report.

Pasadena Public Financing Authority (PPFA)
The Pasadena Public Financing Authority was created through the joint exercise of powers agreement between the City and the Pasadena Community Development Commission (PCDC) dated April 24, 2000. The purpose of creating the PPFA is to accomplish the purposes of the law and the Bond Pooling Act, including the financing of public capital improvements and the pur chase of certain local obligations issu ed or incurred by the City, PCDC, or other public agencies or the sale of such local obligations or the issuan ce of bonds of th e PPFA secured in whole or in part by such local obligations, or by any other designated source of revenues, all permitted by the law or the Bond Pooling Act. The Bond Pooling Act authorizes and empowers the PPFA to, among other things, (1) issue bonds and to expend or loan the proceeds thereof to the City or PCDC, (2) finance the acquisition and/or construction of public capital improvements and to sell or lease such improvements to the City or PCDC, and (3) purchase bonds issued by the City or PCDC, all for the purpose of financing public capital improvements, working capital, liability and other insurance needs, or certain other projects wh enever there are significant public benefits, as determined by the City or PCDC. PCDC ceased operations as an entity on January 31, 2012, and the City became the successor agency to the PCDC to perform all of PCDC’s continuing obligations. PPFA’s financial data and transactions are blended with the debt servic e and capital projects fund. The PPFA does not release a separate financial report.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
40 Annual Comprehensive Financial Report | June 30, 2023 (1) Summary of Significant Accounting Policies (Continued) (A) Reportin
g Entity (Continued)
Blended Component Units (Continued)
Pasadena Fire and Police Retirement System (FPRS)
FPRS was originally established by the City Charter in 1919. The system was closed on June 30,1977 but continues to pay out benefits to retirees and their beneficiaries. FPRS covers all sworn fire and police personnel who were employed by the City prior to July 1, 1977, except those wh o elected to transfer to the California Public Employees’ Retirement System (CalPERS) when the system closed. FPRS is managed by a five-member Retirement Board. Three of the members are appointed by the City Council. The other two members represent firefighter and police officials and are each appointed by their respective members. The accompanying financial statements include FPRS under the employee benefit tr ust fund. Additional information related to FPRS is included in the detailed notes on Pension Plans.

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

Pasadena Rental Housing Board (PRHB)
The Pasadena Rental Housing Board (PRHB) was established as part of the adoption of a voter-initiated City Charter Amendment (Measure H), which was approved by Pasadena voters at the November 2022 General Municipal Election. Codified as City Charter Article XVIII, Section 1811 of the Charter establishes the PRHB, its composition, duties, authority, and oversight of the Pasadena Fair and Equitable Housing Charter Amendment.

The accompanying statements include PRHB as a custod ial fund in the fiduciary funds section. Additional information is available at https://www.cityofpasadena.net/commissions/pasadena-rental-housing-board.

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

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

RBOC operations are discretely presented in the accompanying financial statements since neither of the two criteria for blended component units, as described ab ove, have been met. RBOC’s budget is reviewed and approved by the City Council. Separate component unit financial statemen ts of RBOC are issued and available upon request from the RBOC Administration Office at 1001 Rose Bowl Drive, Pasadena, California 91103. RBOC’s financials were audited in accordance with Government Auditing Standards. Additional information is available at https://www.rosebowlstadium.com/.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 41 (1) Summary of Significant Accounting Policies (Continued)

(A) Reporting Entity (Continued)

Discretely Presented Component Units (Continued)

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

PCOC is governed by a fourteen-member board who are appointed by the City Council. The City provides a significant portion of the operating support of PCOC through allocation of the Transient Occupancy Tax collected by the City. Separate component unit financial statements of PCOC are issued and available upon request from Pasadena Center Operating Company, 300 E. Green Street, Pasadena, CA 91101. PCOC’s financials were audited in accordance with Government Auditing Standards . Additional information is available at https://www.visitpasadena.com/.

Pasadena Community Access Corporation Board (PCAC)
PCAC was created by the City Counc il in July 1983 and esta blished on December 9, 1983, by Articles of Incorporation. The PCAC's primary purpose is to provide a means for individuals or groups to use cable telecommunications to communicate and share information. The PCAC board consists of eleven members. Seven are appointed from each Council district, one each by the Mayor and City Manager, two members, including one representing Pasadena City College (PCC) and another one representing Pasadena Unified School District (PUSD) with residency required except for the PCC and PUSD representative. The City can impose its will on PCAC through its ability to appoint a majority of its board members. PCAC’s budget is reviewed and approved by the City Council. The City provides support through the 1% Public, Education, and Government (PEG) allocation. Separate component unit financial statements of PCAC are issued and available upon request from Pasadena Community Access Corporation, 150 South Los Robles Avenue, Pasa dena, CA 91101. PCAC’s financials were audited in accordance with Government Auditing Standards . Additional information is available at

https://www.pasadenamedia.org/.

Jointly Governed Organizations

The following organizations are considered to be jointly governed organizations of the City:

Hollywood Burbank Airport
The Hollywood Burbank Airport (formerly marketed as Bob Hope Airport) is under the governance of the Burbank-Glendale-Pasadena Airport Authority (Airport Au thority). The Airport Author ity is a separate agency created in 1977 under a joint powers agreement (JPA) between the three cities for the sole purpose of owning and operating the Bob Hope Airport. Three commissioners fr om each city, appointed by each city's respective city council, make up the nine members of the Airport Authority. There is no ongo ing financial interest or responsibility by the participat ing governments. Additional information is available at www.hollywoodburbankairport.com.

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

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
42 Annual Comprehensive Financial Report | June 30, 2023 (1) Summary of Significant Accounting Policies (Continued) (A) Reporting Ent ity (Conti
nued)
Jointly Governed Organizations (Continued)
Foothill Air Support Team (FAST)
On July 31, 2000, the cities of Monrovia, Arcadia, Az usa, Covina, West Covina, and Pasadena formed a Joint Powers Agreement (JPA) for police helicopter services kn own as the FAST. Currently, the cities of Alhambra, Arcadia, Covina, Glendora, Monrovia, Pasadena, Pomona , San Marino, Sierra Madre, and South Pasadena are parties to the JPA. This arrangement provides police helicopter support to a number of neighboring cities on an hourly cost reimbursement basis. The City of Pasadena operates a fleet of police helicopters which it has made available for a limited set number of weekend hours and then on an on-call basis. Cities are billed for their actual utilization. FAST does not own or operate helicopters, has not issued debt, and cannot levy taxes. The City bears the burden of purchasing, op erating, maintaining, and providing helicopter support. It does so under the City’s General Fund.

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

Foothill Workforce Development Board (FWDB)
Developed 35 years ago, the City Council approved a JPA among the cities of Arcadia, Duarte, Monrovia, Sierra Madre, South Pasadena, and Pasadena. The JPA created the Foothill Employment and Training Consortium (FETC) which the City of Pasadena is the fiscal agent and ha s the authority to receive and administer workforce development funds. FETC formed the Foothill Workforce Development Board (FWDB) to take the lead in developing the implementation plan for workforce deve lopment services for job seekers and businesses. The mission is to support economic growth in the San Gabriel Valley by investing in skill development and job training to ensure that businesses have qualified workforce talent and job seekers have career opportunities. The FWDB’s Americas Job Center of California is lo cated at 1207 East Green Street in Pasadena and is funded through the Workforce Innovation and Opportunity Act (WIOA).

Verdugo Communities Joint Powers Authority (AVCJPA)
The City is a party to, and administra tor for, the AVCJPA. This separate entity is a vehicle for the six-member agencies: cities of Burbank, Glendale, La Cañada Flintridge, Pasadena, South Pasadena, and County of Los Angeles 5th District (La Crescenta-Montrose) to coordinate regional and cooperative planning, primarily in transportation and determine how to prioritize regional transportation projects and the allocation of Measure M funds. The JPA is financially accountable to the member agencies and is governed by a Boar d of Directors. The JPA has its own audit of financial statements and is available at https://avcjpa.org/.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 43 (1) Summary of Significant Accounting Policies (Continued)

(B) Basis of Accounting and Measurement Focus

The basic financial statements of the City are composed of the following:
• Government-wide financial statements
• Fund financial statements
• Notes to the basic financial statements

Government-wide Financial Statements

Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business-type activities of the primary government (including its blended component units), as well as its discretely presented component units. Eliminations have been made in the statement of activities so that certain allocated expenses are recorded only once (by function to which they were allocated). However, general governmental expenses have not been allocated as indirect expenses to the various functions of the City.

Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting . Under the economic resources measurem ent focus, all economic resources and obligations of the reporting government (both current and long-term) are reported in the government-wide financial statements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities are recognized in accordance with various GASB Statements.

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

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

Fund Financial Statements

The underlying accounting system of the City is organized and operated based on separate funds, each of which is a separate accounting entity. The operations of each fund are accounted for with a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, revenues and ex penditures 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 how spending activities are controlled.

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

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
44 Annual Comprehensive Financial Report | June 30, 2023 (1) Summary of Significant Accounting Policies (Continued) (B) Basis of
Accounting and Measurement Focus (Continued)
Governmental Funds
In the fund fi
nancial 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 s oon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses the following revenue availability periods:
• Reimbursement-type grants 90 days
• All other governmental fund revenues 60 days
The City accrues the following revenue types: taxes, licenses, fines and forfeits, and miscellaneous revenues.

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

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

Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets despite their spending measurement focus. Special reportin g treatments are used to i ndicate that they should not be considered “available spendable resources,” since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are reflected in nonspendable fund balance.

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

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

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 45 (1) Summary of Significant Accounting Policies (Continued)

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

Proprietary Funds

The City’s enterprise and internal service funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when the related g oods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurre nt) associated with their ac tivity are included on their balance sheets. Proprietary funds type operating stat ements present increases (revenues) and decreases (expenses) in total net position.

Operating revenues and expenses generally result from providing services and prod ucing and delivering goods in connection with a proprietary fund’s principal ongoin g operations. The principal operating revenues of the Light and Power Fund, Water Fu nd, Off-Street Parking Facilities Fund, a nd the City’s internal service funds are charges to customers for sales and services. Operating expenses for the enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation/amortization on capital assets.

All revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses.

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

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

Fiduciary Funds

The City’s fiduciary funds include employee benefit trust funds, custodial funds, and private-purpose trust funds.

Employee benefit trust funds account for resources required to be held in trust for the members and beneficiaries of benefit and contribution plans. Private-purpose trust funds account for receipt of incremental property tax and payment of enforceable obligations (debts) of the former redevelopment agency.

The City reports the following major governmental funds:

General Fund – The primary fund of the City; accounts for all general revenues of the City not specifically levied or collected for other City funds and for expenditures related to the rendering of general services by the City. Included under the General Fund are American Rescue Plan Act (ARPA) activities. ARPA funds are restricted for the bridging of budget shortfalls, ed ucation, housing, and healthcare-related funding, including COVID-19 vaccines, testing and contact tracing, and emergency paid leave.

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

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

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

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
46 Annual Comprehensive Financial Report | June 30, 2023 (1) Summary of Significant Accounting Policies (Continued) (C) Major Fun ds,
Internal Service Funds and Fiduciary Fund Types (Continued) The City reports the following major proprietary funds:

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

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

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

The City reports the following internal service funds:

Computing and communication servic es, building maintenance, fleet replacement, fleet repair and maintenance, employee benefits, work ers’ compensation, general liability, and the 3-1-1 ca ll center to other departments or agencies of the City.

The City reports the following fiduciary fund types:

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

Custodial Funds – These funds account for resources held by the City in a purely custodial capacity. Custodial funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. The custodial funds account for monies received from agencies and financial activities for: (1) La ke/Washington Special Assessment District, (2) Library equipment, (3) Workforce Innovation and Opportunity Act (WIOA), (4) Open Space Assessment District, and (5) Pasadena Rental Housing Board.

Private-Purpose Trust Funds – These funds account for monies held on behalf of others in a fiduciary capacity, typically pursuant to a formal trust agreem ent. The City uses a private purpose trust fund to account for the receipt of incremental property tax and payment of enforceable obligations (debts) of the former redevelopment agency that were approved on the Recognized Obligation Payment Schedule (ROPS) by the California Department of Finance until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. (D) Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known am ounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary funds’ share in the City’s cash and investment pool. Cash equivalents have an original maturity date of three months or less from the date of purchase. (E) Cash and Investments
Investments are reported in the accompanying financial statements at fair value based on quoted market prices, except for certain certificates of deposits, 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.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 47 (1) Summary of Significant Accounting Policies (Continued)

(E) Cash and Investments (Continued)

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

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

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

The City enters into interest rate swap agreements to modify rates on outstanding debts. Other than the net interest expenditures resulting from these agreements, no amounts are recorded in the financial statements.

(F) Inventories

Inventories held by the Light and Power Fund and Water Fund are carried at the lower of weighted average cost or market computed on a first-in/first-out basis dependin g on the type of inventory. There are three types of inventories, those held for consumption in operatio ns, those capitalized, and inventory held for resale.

Inventories held by the Fleet Maintenance internal service fund are carried at average cost. Inventory items are accounted for as an expenditure or expense when consumed or sold.

(G) Advances to Other Funds

Long-term interfund advances are recorded as a receivable and as nonspendable fund balance by the General Fund since they do not reflect current appropriable reserves.

(H) Prepaids

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid assets. The City utilizes the allocation method to reco rd its prepaids. The prepaid assets recorded in the governmental funds do not reflect current appropriable resources and, thus, an equivalent portion of fund balance is nonspendable.

(I) Restricted Cash and Investments

The City considers all cash and investments from bond pr oceeds in proprietary funds as restricted. The City is legally mandated under bond indentures to use these resources only for the purposes specified. Also included as restricted cash and investments ar e amounts accumulated in the Light and Power Fund for the purpose of meeting future contractual commitments, including th e Stranded Investment Reserve (SIR) Utilization Plan (discussed further in the detailed notes), deferred comp ensation, and all cash and investments belonging to employee benefit trust and custodial funds held by trustees.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
48 Annual Comprehensive Financial Report | June 30, 2023 (1) Summary of Significant Accounting Policies (Continued) (J) Property Held for Resale
Property held for resale
represents land, structures, and their related improvements that were acquired for resale. This includes the properties acquired in accordance with the objective of the former Pasadena Community Development Commission (PCDC) project area.

On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 that provides for the dissolution of all redevelopment agencies in Calif ornia. The bill provides that upon d issolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the “succe ssor agency” to hold the assets until they are distributed to other units of state and local government. The City Council elected to become the Successor Agency on January 30, 2012.
(K) Capital Assets
Capital assets, including infrastructure, greater than $10 are capitalized and recorded at cost or at the estimated fair value of the assets at the time of acquisition where complete historical records have not been maintained.

Contributed capital assets, works of art, and capital assets received in servic e concession agreements are reported at acquisition value. The cost s of normal maintenance and repairs th at do not add to the value of the asset or materially extend assets lives are not capitalized.

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

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

Production plant 20 to 40 years Source of supply 20 to 50 years Transmission plant 25 to 40 years Pumping plant 10 to 50 years Distribution plant 20 to 40 years Treatment plant 10 to 20 years General plant 10 to 40 years Transmission and distribution plant 10 to 80 years Equipment 4 to 10 years General plant 6 to 50 years Lease assets Equi pment 4 to 10 years
Lease assets
Subscription assets
Subscription assets
Buildings and improvements 20 to 50 years
Machi nery and equi pment 2 to 20 years
Infrastructure 8 to 200 years
Lease assets
Subscription assets
Light and Power Fund Water Fund
Shorter of the us eful life of the
underly ing asset or the lease term
Shorter of the us eful life of the
underlying asset or the subscription
term
Shorter of the useful life of the
underlying asset or the lease term
Shorter of the useful life of the
underlying asset or the subscription
term
All Other Funds
Shorter of the us eful life of the
underly ing asset or the lease term
Shorter of the us eful life of the
underlying asset or the subscription
term
(L) Leases
Leases are financings of th
e right to use an underlying asset. In accordance with GASB Statement No. 87, Leases, parties to a lease agreement, the lesse e and lessor, are required to recogniz e a lease liability and an intangible right-to-use lease asset (a capital asset hereinafter refe rred to as the lease asset), and a lease receivable and deferred inflow of resources, respectively. A general de scription of the leasing arrangements, the aggregated amounts of resource inflows and outflows recognized from lease contracts, including those not included in the measurement of the lease liability and receivable, and the disclosure of the lo ng-term effect of lease arrangements on a government’s resources are further discussed in the detailed notes.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 49 (1) Summary of Significant Accounting Policies (Continued)

(M) Subscription-Based Information Technology Agreements (SBITA) (GASB 96, new in fiscal year 2023)

In accordance with GASB Statement No. 96, Subscription-Based Information Technology Agreements (SBITA), a government should recognize a right-to-use subscrip tion asset—an intangible asset—and a corresponding subscription liability. A government should recognize the subscription liability at the commencement of the subscription term, which is when the subscription asset is placed into service. The subscription liability should be initially measured at the pr esent value of subscription payments expected to be made during the subscription term. Future subscription payments should be discounted using the interest rate the SBITA vendor charges the government, which may be implicit, or the government’s incremental borrowing rate if the interest rate is not readily determinable. A government should recognize amor tization of the discount on the subscription liability as an outflow of resources (for example, interest expense) in subsequent financial reporting periods.

(N) Insurance Claims Payable

Insurance claims payable are claims and judgments recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated, net of insurance coverage. Such claims, including an estimate for claims incurred but not reported at ye ar end, are recorded as liabilities in the workers’ compensation and general liability inte rnal service funds. The City record s a liability for material litigation, judgments, and claims on a case-by-case basis when it is probable a material liability has been incurred on or before June 30, and the probable amount of loss can be reasonably estimated. Detailed notes discuss excess liability insurance covers claims greater than the self-insurance thresholds.

(O) Compensated Absences

The City accounts for compensated absences including accumulated va cation, floating holidays, and compensatory time-off, and certain si ck leave in the Benefits internal service fund. Management time off is recorded under departmental expense as incurred. Upon separation, employees are paid for all their unused vacation leave, floating holidays, management time off, and compensatory time -off subject to maximums described below.

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

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

Compensated absences are primarily liquidated by the General Fund, Light and Power Fund, and Water Fund.

Sick pay benefits only accumulate; they can be converte d at retirement from the City for PERS Service Credit.

Consistent with this policy, the City does not accrue sick pay benefits. The to tal outstanding vacation, compensatory time-off obligations are accrued at fiscal year-end and included under Compensated Absences in the Benefits internal service fund as a current liability.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
50 Annual Comprehensive Financial Report | June 30, 2023 (1) Summary of Significant Accounting Policies (Continued) (P) Net Pension Liability
For purposes of measuring
the net pension liability, de ferred outflows and inflows of resources related to pensions, and pension expense, information about the fi duciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office and are in accordance with the im plementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website, www.calpers.ca.gov, under Forms and Publications. (Q) Other Postemployment Be
nefits (OPEB)
OPEB are benefits (other than pensions) the City provid es to retired employees. For purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB plan, and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined by an independent actuary and are in accordance with the implementation of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. (R) Bond Premiums / Discounts / Issuance Costs
For governmental-wide and proprietary funds financial statements, issuance costs are recognized during the current period. Any bond premiums and discounts are capitalized and amortized over the life of the bonds. Bond proceeds, premiums and discounts are reported as other financing sources in the governmental fund financial statements.
(S) Deferred Outflows and Inflows of Resources
Pursuant to GASB Statements No. 63 and 65, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Po sition and Items Previously Reported as Assets and Liabilities , respectively, the City recognizes deferred outflows and inflows of reso urces. A deferred outflow of resources is defined as a consumption of net assets by the government that is applicable to a future reporting period. A deferred inflow of resources is defined as an acquisition of net assets by the government that is applicable to a future reporting period. The City has four items that qualify for reporting in this category: deferred amounts for bond refunding, pensions, OPEB, and leases.
(T) Fund Balance
In the fund financial statements, governmental fund balance is made up of the following components:

Nonspendable fund balance is the portion of fund balance that cannot be spent due to form. Examples include inventories, prepaid amounts, long-t erm loans, notes receivable, and pr operty held for resale, unless the proceeds are restricted, committed or assigned. Also, am ounts that must be mainta ined intact legally or contractually, such as the principal of a permanent fund are reported within the nonspendable category. • Restricted fund balance is the portion of fund balance that is subject to externally enforceable limitations by law, enabling legislation or limitations imposed by creditors or grantors. • Committed fund balance is the portion of fund balance that is subject to self-imposed constraints due to City Council resolutions, as they have the highest level of decision-making authority.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 51 (1) Summary of Significant Accounting Policies (Continued)

(T) Fund Balance (Continued)

• Assigned fund balance is the portion of fund balance that is constrained by the City’s intent to utilize fund balance for a specific purpose. The authority to assign fund balance has been delegated by the City Council to the Finance Director through the Fund Balance Policy.

Unassigned fund balance is the residual classification for th e General Fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. The General Fund should be the only fund that reports a positive unassigned fund balance amount. In a governmental fund other than the General Fund, expenditures incurred for a specific purpose might exceed the amounts in the fund that are restricted, committed, and assigned to that purpose and a negative residual balance for that purpose may result.

The accounting policies of the City consider restricted fund balance to have been spent first when expenditures are incurred for purposes for which both the restricted and unrestricted fund balance is available. Similarly, when expenditures are incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned and then unassigned amounts.

In June 2017, the City Council directed staff to revise the Fund Balance Policy to split the General Fund Emergency Contingency into two components of committed fund balance: the General Fund Emergency Contingency Reserve and a General Fund Operating Reserve. The go al of a 20 percent General Fund reserve as committed fund balance continues but is split 15 percent to the Emergency Contingency Reserve and 5 percent to the Operating Reserve. These percentages continue to be calculated using that year’s General Fund budgeted appropriations. It is intended that these committed fund balances would not be reduced below a 20 percent level without the direction of Council or upon a declared local emergency.

(U) Property Taxes

The assessment, levy and collection of property taxes are the responsibility of the County of Los Angeles. The City records property taxes as revenue when received from the County, except at year-end, when property taxes received within 60 days are accrued as revenue.

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

Li en Ja nua ry 1
Levy July 1 to June 30
Due Nov ember 1 - 1 st installment
February 1 - 2nd installment
C ollec tion Dec ember 1 0 - 1 st installment
Apr il 1 0 - 2 nd installment

Property taxes on the secured roll are due in two installments: on November 1 and February 1 of the fiscal year.

If unpaid, such taxes become delinquent on December 10 and April 10, respectively, and a 10% penalty attaches to any delinquent payment. Such delinquent property may thereafter be redeemed by payment of the delinquent taxes and the delinquent penalty, plus a redemption penalty of 1% per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is then subject to sale by the County Tax Collector.

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

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

52 Annual Comprehensive Financial Report | June 30, 2023 (1) Summary of Significant Accounting Policies (Continued)

(V) Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that a ffect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures. The City has made certain estimates and assumptions relating to the revenues due and expenditures incurred through fiscal year-end, collect ability of its receivables, the valuation of property held for resa le, the useful lives of the capital assets, the ultimate outcome of claims and judgments, and the valuation of pension and othe r postemployment benefit plan liabilities and related deferred outflows and inflows of resources. Actual results may differ from those estimates and assumptions.

(W) Interfund Activities

Certain eliminations have been made as prescribed by GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments , regarding interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business- type activities, which are presented as internal balances and eliminated in the to tal government column. In th e statement of activities, internal services funds transactions have been eliminated. However, tr ansactions between governmental and business-type activities have not been eliminated.

(X) Endowments

The City has been the recipient of endowments that are recorded in permanent funds. The endowments are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City’s programs or specific restrictions that were placed on the endowment when the donation to the City was made.

(Y) New and Future Accounting Pronouncements

In fiscal year ended June 30, 2023, the City adopted GASB Statement No. 96, Subscription-Based Information Technology Arrangements.

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

GASB
Statement
No. GASB Accounting Standard Effective Fiscal Year
99 Omnibus 2022 2023 and 2024
100 Accounting Changes and Error Corrections— an
amendment of GASB Statement No. 62 2024
101 Compensated Absences 2025

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 53 (2) Cash and Investments

Primary Government

Cash and investments as of June 30, 2023 are classified in the accompanying financial statements as follows:

Statement of net pos ition:

Cas h and i nves tments 645,935$
Rest r ic t ed c ash and inv est ment s 8 7 , 5 1 2
Fiduciary funds:

Cash and cash equivalents 353,988
Total cash and investments 1,087,435$
Cash on hand 57$ Deposits with financial institutions (2,774) Investments 1,090,152 Total cash and investments 1,087,435$ Cash and investments as of June 30, 2023 consist of the following:

Investments Authorized by the California Government Code and the City’s Investment Policy

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

Authorized by * Maximum * Maximum
Investment Types Investment * Maximum Percentage Investment Authori zed by State Law Pol i cy Maturi ty of Portfol i o i n One Issuer Local Agency Bonds Yes 5 years None None
US Tre asury Obligations Ye s 5 ye ars None N one
US Agency Securities Yes 5 years None None
Banker's Acceptance Yes 180 days 40% 30%
Commercial Paper Yes 270 days 15% 10%
N e gotiable Ce rtificate s of De posit Ye s 5 ye ars 30% N one Repurchas e Agreement Yes 1 year None None
Reverse Repurchase Agreements Yes 92 days 20% of base value None Time Deposits Yes N/A 25% None
Medium Term Notes Yes 5 years 30% 5%
Mutual Funds Yes N/A 20% 10%
Money Market Mutual Funds Yes N/A 20% 10%
Mortgage Pass-Through Securities Yes 5 years 20% None
Corporate Bonds Yes 5 years 20% 10%
County Pooled Investment Fund Yes N/A None None
Local Agency Investment Fund (LAIF) Yes N/A None None
JPA Pools (other investment pools) Yes N/A None None
Regi stered State Warrants Yes N/A None None
* Base d on state law re quire me nts or inve stm e nt policy re quire m e nts, whiche ve r is more re strictive .

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
54 Annual Comprehensive Financial Report | June 30, 2023 (2) Cash and Investments (Continued)
Investments Authorized
by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond truste e. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Ma xi mum
Authorized Inves tment Type Ma turi ty
US Treasury Obligations None
US Agency Securities None
Ba nker's Accepta nce 360 da ys
Commerci a l Pa per 270 da ys
Money Market Mutual Funds N/A
Inves tment Contra cts 20-30 yea rs
Pre-refunded Municipal Bonds None
Repurchase Agreements 1 y ear
Local Agency Investment Fund (LAIF) N/A
General Obligation Bonds None
Disclosures Relating to Intere
st Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

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

Information about the sen sitivity of the fair values of the City’s inve stments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
12 Months 13 to 24 25 to 60 More than
Investment Type Total or Less Months Months 60 Months
Corporate Bonds 76,560$ 23,378$ 13,706$ 39,476$ -$ Supernationals 27,819 4,732 13,854 9,233 - Federal Agency Securities 420,614 92,758 117,397 183,316 27,143 Municipal Bonds 30,396 9,481 12,548 7,609 758 Certificate of Deposit 1,224 - 1,224 -
California Asset Management Program 81,074 81,074 - - - Money Market Funds 1 1 - - -
Commercial Paper Disc 14,541 14,541 - - - State Investment Pool 6,243 6,243 - - -
US Treasury 55,988 24,119 27,801 4,068 - Held by Bond Trustee:

Federal Agency Securities 11,694 - - 5,099 6,595 Money Market Funds 1,119 1,119 - - -
Held by Pension Section 115 Trustee:

Mutual Fund 12,192 12,192 - - -
Deferred Compensation Plan:

Mutual Funds 350,687 350,687 - - -
Total 1,090,152$ 620,326$ 186,530$ 248,801$ 34,496$ Remaining Maturity (in Months)

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 55 (2) Cash and Investments (Continued)

Disclosures Relating to Credit Risk

Generally, credit risk is the risk that an issuer of an in vestment will not fulfill its oblig ation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

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

Minimum
Legal Not
Investment Type Rating AAA Aa A Rated Exempt
Corporate Bonds 76,560 $ A 13,590 $ 4,379 $ 58,591 $ - $ -$ Supernationals 27,819 A 27,819 - - - - Federal Agency Securities 420,614 N/A - - - - 420,614 Municipal Bond 30,396 N/A 2,019 27,296 1,081 - - Certificate of Deposit 1,224 A - - - 1,224 - California Asset Management Program 81,074 N/A - - - 81,074 - Money Market Funds 1 N/A - - - 1 - Commercial Paper Disc 14,541 AA - - 14,541 - - State Investment Pool 6,243 N/A - - - 6,243 - US Treasury 55,988 N/A - - - - 55,988 Held by Bond Trustee:

Federal Agency Securities 11,694 A - - - - 11,694 Money Market Funds 1,119 A 1,119 - - - - Held by Pension Section 115 Trustee:

Mutual Fund 12,192 N/A - 12,192 - - - Deferred Compensation Plan:

Mutual Fund 350,687 N/A - 350,687 - - -
Total 1,090,152$ 44,547$ 394,554$ 74,213$ 88,542$ 488,296$ Rating as of Year-End
Balance at
June 30, 2023

Concentration of Credit Risk

The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Go vernment Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows:

Investment Reported
Issuer Ty pe Amount
Federal Home Loan Bank Federal Agency Securities 221,600$ Federal Home Loan Mortgage Bank Federal Agency Securities 114,621 Federal Farm Credit Bank Federal Agency Securities 81,580 U.S. Treasury U.S. Tresury 55,989

Custodial Credit Risk

Custodial credit risk for deposits is the r isk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investment s, other than the following provision for deposits: The California Government Code requires that a financial institut ion secure deposits made by state or local governmental units by pledging securities in an undivided collateral p ool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

56 Annual Comprehensive Financial Report | June 30, 2023 (2) Cash and Investments (Continued)

Disclosures Relating to Credit Risk (Continued)

total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

The City has no uncollateralized cash at June 30, 2023. As of June 30, 2023, the City’s deposits with financial institutions in excess of federal depository insurance limits were $59,900 held in accounts collateralized in accordance with California law described above.

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

California Asset Management Program CAMP

CAMP is a program created through a joint powers agency as a pooled short-term portfolio and cash management vehicle for California public agencies under California Government Code Section 53601(p). CAMP is governed by a seven-member Board of Trustees comprised of finance directors and treasurers of California public agencies. The total amount invested by all public agencies in CAMP was $1 5,900,000 ($15 .9 billion) as of June 30, 2023, respectively. Of the amount invested in CAMP, 29.1 percent were invested in medium-term and short-term notes and asset-backed securities at June 30, 2023. The average maturity of CAMP investments was 28 days to 52 days as of such dates.

Investment in State Investment Pool

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

Fair Value Hierarchy

The City categorizes its fair value meas urements within the fair value hierar chy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset or liability. Level 1 inputs are quoted prices in active markets for identical assets ; Level 2 inputs are quoted prices in active markets for similar assets. Level 3 inputs are significant unobservable inputs.

The City is a participant in the California Asset Mana gement Program (CAMP). CAMP is an investment pool offered by the California Asset Management Trust (the Trust). The Trust is a joint powers authority and public agency created by the Declaration of Trust and establish under the provisions of the California Joint Exercise of Powers Act (California Government Code Sections 6500 et seq., or the “Act”) for the purpose of exercising the common power of its Participants to invest certain proc eeds of debt issues and surplus funds. CAMP’s investments are limited to investments permitted by subdivisions (a) to (n), inclusive, of Section 53601 of the California Government Code. The City reports its investments in CAMP at the fair value amounts provided by CAMP, which is the same as the value of the pool share in accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants, requirements. On June 30, 2023, the CAMP pool had an aver age maturity of 26 days and it exempt from the fair value hierarchy.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 57 (2) Cash and Investments (Continued)

The City has the following recurring fair value measurements as of June 30, 2023:

Measured by Fair Value
Not Subject to
Fair Value
Hierarchy 123 T otal
Corpora te Bonds -$ -$ 76,560$ -$ 76,560$ Supernationals - - 27,819 - 27,819 Federa l Agency Securi ti es - - 420,614 - 420,614 Municipal Bond - - 30,396 - 30,396 C er tificate of Deposit 1, 22 4 1,224
California Asset Management Program 81,074 - - - 81,074 Mone y Ma rke t Funds 1 - - - 1 C ommer c ial P aper Disc - - 14,541 - 14,541 Sta te Inves tment Pool 6,243 - - - 6,243 US Treasury - - 55,988 - 55,988 Held by Bond Trustee:

Federal Agency Securi ti es - - 11,694 - 11,694 Mone y Ma rket Funds 1,119 - - - 1,119 Held by OPEB Trustee:

Mutual Fund - - - - - Held by P ension Sec tion 1 15 Tr ustee:

Mutual Fund - - 12,192 - 12,192 Deferred Compens a ti on Pl a n:

Mutual Fund - - 350,687 - 350,687 Total 89,661$ -$ 1,000,491$ -$ 1,090,152$ Level

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NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
58 Annual Comprehensive Financial Report | June 30, 2023 (3) Accounts Receivable
As of June
30, 2023, accounts receivable is categorized as follows:

Special Revenue Capital Projects
Nonmajor
Housing Project Governmental Internal
General Successor Management Funds Service Funds Total
Governmental Activities:

Accounts receivable 3,892$ -$ 4,775$ 9,619$ 104$ 18,390$ Accrued revenue receivable 22,723 - 4 6,149 15 28,891 Interest receivable 390 9 - 589 120 1,108 Paramedics receivable 5,477 - - - - 5,477
Utility receivable 2,512 - - 949 - 3,461
34,994 9 4,779 17,306 239 57,328 Less: allowance for uncollectible
amounts (3,523) - - (221) - (3,744)
Total 31,471 9 4,779 17,085 239 53,583 Nonmajor
Light and Off-Street Enterprise
Power Water Parking Funds Total
Business-type Activities:

Accounts receivable 1$ 330$ 333$ 92$ 756$ Accrued revenue receivable 15,533 5,666 19 8 1,582 22,979 Interest receivable 868 281 42 63 1,254
Paramedics receivable - - - - -
Utility receivable 20,025 6,362 - 1,786 28,173
36,427 12,639 573 3,523 53,162
Less: allowance for uncollectible
amounts (6,243) (1,958) - (667) (8,868)
Total 30,184$ 10,681$ 573$ 2,856$ 44,294$

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 59 (4) Notes Receivable – Primary Government

The notes receivable in the governmental activities amounted to $106,836 at June 30, 2023. Due to the uncertainty of their collectability at June 30, 2023, the City has recorded an allowance for uncollectible long-term receivables of $93,331, resulting in a net balance of $13,505. $61,269 consisted of primarily Housing and Community Development loans, which arose from the sale of land to project de velopers and other agencies, and the provision of loan assistance under the City’s affordable housing programs, subj ect to approved redeve lopment plans. $27,217 consisted of loans that the former re development agency made to assist the development of affordable rental housing projects and the purchase of homes by homebuyers. These loans are secured by trust deeds and were funded with redevelopment low-moderate income housing set-aside funds. These notes have various terms, including maturities ranging from 5 to 45 years and interest rates ranging from 1.5% to 11%.

In January 2009, Light and Power utiliz ed $80,000 of Reserves for Stranded Investment and in return received Subordinated Notes totaled $70,000 from Intermountain Power Agency (IPA) to defease some of IPA’s outstanding debt service requirement for Intermountain Power Project (IPP) bonds. These notes have various maturity dates, and the proceeds, when mature, will be used to stabilize future energy costs. The balance of the notes as of June 30, 2023 is $74.

(5) Due to and from Other Funds

Current interfund receivable and payable balances at June 30, 2023 are as follows:

Due from Other Funds
Due to Other Funds General Fund
Nonmajor Governmental Funds 8,826$
Internal Service Funds 37,008
Total 45,834$

The above balances are due to short-term payables between funds and negative cash balances at the end of the fiscal year.

(Balance of page intentionally left blank)

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

60 Annual Comprehensive Financial Report | June 30, 2023 (6) Capital Assets

Primary Government

Capital asset activity for the year ended June 30, 2023 is as follows:

Balance at
June 30, 2022 Balance at
Governmental Activities: Restated (1) Addi ti ons Deletions Transfers June 30, 2023 Capital assets, not being depreciated/amortized:

Land 87,321 $ 204 $ - $ - $ 87,525$ Construction in progress 31,409 33,134 (1,144) (9,290) 54,109 Total capital assets, not being
depreciated/amortized 118,730 33,338 (1,144) (9,290) 141,634 Capital assets being depreciated/amortized:

Lease asset - land 54 - (54) - - Buildings and improve me nts 307,723 - - - 307,723 Lease asset - buildings 4,371 420 (407) - 4,384 Machi nery and equi pment 88,033 5,875 (1,691) 2,605 94,822 Lease asset - equi pment 715 431 - - 1,146 Subscription assets 7,537 1,753 - - 9,290 Infrastructure 333,327 - - 6,716 340,043 Total capital asse ts, be ing
depreciated/amortized 741,760 8,479 (2,152) 9,321 757,408 L e ss accumulate d de pre ciation/am ortization:

Lease asset - land (12) (42) 54 - - Buildings and improve me nts (154,064) (5,660) - - (159,724) Lease asset - buildings (925) (962) 407 - (1,480) Machi nery and equi pment (53,367) (6,756) 1,546 (31) (58,608) Lease asset - equi pment (245) (298) - - (543) Subscription assets - (1,692) - - (1,692) Infrastructure (126,533) (7,078) - - (133,611) Total accumulate d de pre ciation/am ortization (335,146) (22,488) 2,007 (31) (355,658) Total capital asse ts, be ing
depreciated/amortized, net 406,614 (14,009) (145) 9,290 401,750 Govermental activites capital assets, net 525,344$ 19,329$ (1,289)$ - $ 543,384$

(1) The beginning balance was restated to add the right-to-use subscription assets due to the implementation of GASB Statement No. 96, Subscription-Based Information Technology Arrangements (GASB 96).

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 61 (6) Capital Assets (Continued)

Primary Government (Continued)

During the year, governmental activities received proceeds of $69 from the disposal of capital assets and incurred a net loss on disposal of $175.

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

General Government 6,481$
Public Safety 1,941
Transportation 2,023
Health 206
Culture and Leisure 1,944
Com munity De ve lopme nt 6,563
Computing and Communication 1,663
Building Mainte nance 10
Fleet Maintenance 1,488
Fleet Repair and Maintenance 76
Workers' Compensation 2
Ge ne ral L iability 79
311 Call Center - Citizen Service Center 12
Total 22,488$

During the year, governmental activiti es recognized $9,290 in subscription assets and $1,693 in accumulated amortization, or $7,597 in net subscription assets as a result of the implementation of GASB 96.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
62 Annual Comprehensive Financial Report | June 30, 2023 (6) Capital Assets (Continued)
Primary Government (Continued)
Balance at
June 30, 2022 Adjustments Balance at
Business-type Activities: Restated (1) (2) Addi ti ons Deletions Transfers June 30, 2023 Capital assets not being depreci ated/amortized:

Land 14,685$ -$ -$ -$ 1$ 14,686 $
Construction in progress 81,996 - 52,991 - (60,422) 74,565 Total capital assets, not bei ng
depreciated/amortized 96,681 - 52,991 - (60,421) 89,251 Capital assets being depreciated/amortized:

Buildings and improvements 142,289 - - (3,498) 1,028 139,819 Lease asset - buildings 2,239 564 2,149 - - 4,952 Utility lines, machine ry and e quipm ent 1,253,608 - 3,409 (23,030) 59,393 1,293,380 Lease asset - equi pment 32 - 12 (9) - 35
Subscripti on assets 5,814 - 1,010 - - 6,824
Total capital asse ts, being
depreciated/amortized 1,403,982 564 6,580 (26,537) 60,421 1,445,010 L ess accumulate d de preciation/am ortization:

Buildings and improvements (70,693) - (3,810) 3,346 - (71,157) Lease asset - buildings (958) (423) (1,386) - - (2,767) Utility lines, machine ry and e quipm ent (610,113) - (44,381) 21,019 - (633,475) Lease asset - equi pment (7) - (12) 2 - (17)
Subscripti on assets - - (1,586) - - (1,586)
Total accum ulate d
depreciation/amortization (681,771) (423) (51,175) 24,367 - (709,002) Total capital asse ts, being
depreciated/amortized, net 722,211 141 (44,595) (2,170) 60,421 736,008 Business-type activites capital assets, net 818,892$ 141$ 8,396$ (2,170)$ - $ 825,259$ (1) The beginning balance was re
stated to add the subscription assets due to the implementation of GASB 96. (2) Lease asset - buildings was adjusted due to reevaluation for the year ended June 30, 2023.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 63 (6) Capital Assets (Continued)

Primary Government (Continued)

During the year, business-type activities received proceeds of $77 from the disposal of capital assets and incurred a loss on disposal of $2,038.

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

Electric 37,850$
Water 10,326
Refuse 935
Parking 1,886
Telecommunication 178
Total 51,175$

During the year, business-type activities recognized $6 ,825 in subscription assets and $1,586 in accumulated amortization or $5,239 in net subscription assets as a result of the implementation of GASB 96.

Fiduciary Funds – Private-Purpose Trust Fund

Balance at Balance at
Fiduciary Funds June 30, 2022 Additions Deletions June 30, 2023 Capital assets not depreciated:

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

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

64 Annual Comprehensive Financial Report | June 30, 2023 (7) Leases

A lease is defined as a contractual agreement that conveys co ntrol of the right to use another entity’s nonfinancial asset, for a minimum contractual period of greater than one year, in an exchange-like transaction.

City as Lessor

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

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

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

As lessor, the City has thirteen (13) applicable leases that qualify for reporting as of June 30, 2023. The lease terms range from 24 to 120 months for the intangible right-to-use land, land improvements, buildings, and infrastructure, respectively. Most of these leases incl ude periodic adjustments to the lease amounts at determined intervals. The fixed monthly lease payment ranges from $1 to $39, respectively, with the incremental borrowing rate ranging from

0.19% to 1.04%. For the year ended June 30, 2023, the City received an immaterial amount of variable and other payments from these lease arrangements.

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

Changes in lease receivable for the year ended June 30, 2023, are as follows:

Balance at Balance at
June 30, 2022 Additions Deletions June 30, 2023
Governmental Activities:

Lease receivable 2,437$ 82$ (800)$ 1,719$ Deferred inflow of resources 2,383 80 (822) 1,641 Business-type Activities:

Lease receivable 1,300 327 (444) 1,183 Deferred inflow of resources 1,288 327 (441) 1,174

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 65 (7) Leases (Continued)

City as Lessor (Continued)

During the year ended June 30, 2023, the City recognized the lease revenues and interest revenues as follows:

Governmental Business-type
Acti vi ti es Acti vi ti es
Amortization of deferred inflow of resources 822$ 433$ Short-term rental revenues 4,666 -
Total le ase re ve nue s 5,488$ 433$
Lease interest revenues 10$ 11$

City as Lessee

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

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

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

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

As lessee, the City has seventeen (17) applicable leases that qualify for report ing as of June 30, 2023. During the fiscal year, the City entered into nine (9) lease agreements. The lease terms range from 9 to 108 months for the intangible right-to-use buildings and equipment. Most of these leases include periodic adjustments to the lease amounts at determined intervals. The fixed monthly lease payment ranges from $0.4 to $77 with the incremental borrowing rate ranging from 0.17% to 3.31%. For the year ended June 30, 2023, the City paid an immaterial amount of variable and other payments from these lease arrangements.

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

Lease assets are reported with capital assets (see Note 6).

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

66 Annual Comprehensive Financial Report | June 30, 2023 (7) Leases (Continued)

City as Lessee (Continued)

Changes in lease asset and lease liability for the year ended June 30, 2023 are as follows:

Balance at Balance at
June 30, 2022 Adjustments (1) Additions Deletions June 30, 2023 Governmental Activities:

Lease assets
Land 54$ -$ -$ (54) $ -$ Buildings 4,371 - 420 (407) 4,384 Equipment 715 - 431 - 1,146 Total lease assets 5,140 - 851 (461) 5,530 Accumulated amortization (1,183) - (1,301) 461 (2,023) Tot al le ase asse t s, ne t 3,957$ -$ (450) $ - $ 3,507$ Lease liability 4,024$ -$ 851 $ (1,234)$ 3,641$ Business-type Activities:

Lease assets
Buildings 2,239$ 564$ 2,149 $ - $ 4,952$ Equipment 32 - 11 (8) 35 Tot al le ase asse t s 2,271 564 2,160 (8) 4,987 Accumulated amortization (965) (423) (1,398) 2 (2,784) Tot al le ase asse t s, ne t 1,306$ 141$ 762$ (6)$ 2,203$ Lease liability 1,376$ 141$ 2,160$ (1,251) $ 2,426$

(1) Lease asset – buildings was adjusted due to reevaluation for the fiscal year ended June 30, 2023.

During the year ended June 30, 2023, the City recognized the lease expenses and interest expenses as follows:

Governmental Business-type
Activities Activities
Amortization of lease assets 1,301 $ 1,398 $ Other lease (non-GASB 87) expenses 955 464 Total le ase e xpe nse s 2,256$ 1,862$ Lease i nterest expens es 40$ 12$ Other l ease (non-GASB 87) i nterest expenses 78 49 Total le ase inte re st e xpe nse s 118$ 61$

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 67 (7) Leases (Continued)

City as Lessee (Continued)

As of June 30, 2023, the City had minimum principal and interest payment requirements for its leasing activities with a remaining term in excess of one year, as follows:

Fiscal Year Principal Interest Total Payments
2024 992$ 96$ 1,088$
2025 595 71 666
2026 534 49 583
2027 484 27 511
2028 367 8 375
2029 - 2030 669 7 676
Total 3,641$ 258$ 3,899$
Fiscal Year Principal Interest Total Payments
2024 848$ 49$ 897$
2025 456 33 489
2026 470 16 486
2027 487 3 490
2028 165 - 165
Total 2,426$ 101$ 2,527$
Governmental Activities
Business-type Activities

(Balance of page intentionally left blank)

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

68 Annual Comprehensive Financial Report | June 30, 2023 (8) Subscription-Based Information Technology Arrangements (SBITA)

A Subscription-Based Information Technology Arrangement (SBITA) is defined as a contract that conveys control of the right to use another party’s (a SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of greater than one year in an exchange or exchange-like transaction.

In May 2020, Governmental Accounting Standa rd Board (GASB) issued Statement No. 96, Subscription-Based Information Technology Arrangements (SBITA) (GASB 96). GASB 96 provides guidance on the accounting and financial reporting for SBITA for government end users. The requirements GASB 96 are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. City of Pasadena adopted GASB 96 on the Annual Comprehensive Financial Report for the period of July 1, 2022, to June 30, 2023.

The City recognizes a SBITA liability and an intangible right-to-use asset in the government-wide financial statements.

The City recognizes SBITA liabilities with an initial, individual value of $10 or more.

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

Key estimate and judgements related to SBITA include how the City determines (1) the discount rate it uses to discount the expected SBITA payments to present value, (2) SBITA term, and (3) SBITA payments.

• The City uses its estimated incremental borrowing rate as the discount rate for SBITA. • The SBITA term includes the noncancellable period and periods covered by an option to extend if it is reasonably certain that the government or SBITA vendor will exercise that option.

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

SBITA assets are reported with the other capital assets and SBITA liabilities are reported with long-term debt on the statement of net position.

All SBITAs were recognized as having an inception date as of July 1, 2022, or after. On June 30, 2023, the City has forty-eight (48) qualifying SBITAs under GASB 96.

• The SBITAs include a range of options to extend the SBITA term for a period of one to eight years with the final extension period ending June 30, 2030.
• The City is required to make annual principal and in terest payments between $9 and $691. The City is utilizing a range of incremental borrowing rates between 1.70%-3.30%.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 69 (8) Subscription-Based Information Technology Arrangements (SBITA) (Continued)

The subscription assets and subscription liability for the year ended June 30, 2023, are as follows:

Balance at
June 30, 2022 Balance at
Governmental Activities: Restated (1) Additions Deletions June 30, 2023 Subscription assets 7,537$ 1,753$ -$ 9,290$ Accumulated amortization - (1,692) - (1,692) Total subscription assets, net 7,537$ 61$ - $ 7,598$ Subscription liability 6,052$ 1,733$ (1,968)$ 5,817$ Business-type Activities:

Subscription assets 5,814 $ 1,010 $ - $ 6,824$ Accumulated amortization - (1,586) - (1,586) Total subscription assets, net 5,814$ (576)$ - $ 5,238$ Subscription liability 5,086$ 1,011$ (1,327)$ 4,770$

(1) The beginning balance was restated due to the implementation of GASB 96.

SBITA principal and interest payments to maturity are as follows:

Fiscal Year Principal Interest Total Payments
2024 2,233$ 158$ 2,391$ 2025 1,352 101 1,453 2026 1,191 61 1,252 2027 743 25 768 2028 267 6 273 2029 - 2030 31 - 31 Total 5,817$ 351$ 6,168$ Fiscal Year Principal Interest Total Payments
2024 1,341$ 116$ 1,457$ 2025 853 86 939 2026 821 64 885 2027 796 44 840 2028 516 25 541 2029 - 2030 442 16 458 Total 4,770$ 351$ 5,120$ Business-type Activities
Governmental Activities

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
70 Annual Comprehensive Financial Report | June 30, 2023 (9) Deferred Inflows and Outflows
Primary Government
Deferred outflows on the government-wide statement of net position consist of the following at June 30, 2023:

Govermental Activities Balance at Balance at
June 30, 2022 Increase Decrease June 30, 2023
2015A Refunding COP Deferred Charges 3,844$ -$ (246)$ 3,598$ 2020A Refunding POB Deferred Charges 11,759 - (515) 11,244 2020B Refunding POB Deferred Charges 5,569 - (352) 5,217 GASB68 Contribution Subsequent to Measurement Date 54,426 58,726 (54,426) 58,726 GASB68 Net Difference on Pension Plan Investments - 64,621 - 64,621 GASB68 Change of Assumptions 2,069 36,010 (2,069) 36,010 GASB68 Difference in Experience 3,795 1,725 (3,795) 1,725 GASB75 Net Difference on Pension Plan Investments 173 147 (173) 147 GASB75 Change of Assumptions 8,321 5,330 (8,322) 5,329 GASB75 Difference in Experience 629 556 (629) 556 FPRS Net Difference on Pension Plan Investments 6,359 5,594 (6,359) 5,594 96,944$ 172,709$ (76,886)$ 192,767$
Business-type Activities Balance at Balance at
June 30, 2022 Increase Decrease June 30, 2023
1998 Electric Bonds Deferred Charges 108$ -$ (108)$ -$ 2008 Electric Bonds Deferred Charges 802 - (53) 749 2003 Water Bonds Deferred Charges 66 - (66) -
GASB68 Contribution Subsequent to Measurement Date 11,376 11,843 (11,376) 11,843 GASB68 Net Difference on Pension Plan Investments - 13,342 - 13,342 GASB68 Change of Assumptions - 6,812 - 6,812
GASB68 Difference in Experience 182 - (182) -
GASB75 Net Difference on Pension Plan Investments 43 38 (43) 38 GASB75 Change of Assumptions 2,086 1,375 (2,086) 1,375 GASB75 Difference in Experience 158 142 (158) 142
14,821$ 33,552$ (14,072)$ 34,301$
Deferred inflows
on the government-wide statement of net position consist of the following at June 30, 2023:

Governmental Activities
Balance at Balance at
June 30, 2022 Increase Decrease June 30, 2023
GASB68 Change of Assumptions 244$ 57$ (244)$ 57$ GASB68 Difference in Experience 2,808 7,887 (2,808) 7,887 GASB68 Net Difference on Pension Plan Investments 129,607 - (129,607) - GASB75 Change of Assumptions 19,124 17,201 (19,124) 17,201 GASB75 Difference in Experience 2,767 1,782 (2,767) 1,782 GASB87 Lease Related 2,383 80 (822) 1,641
156,933$ 27,007$ (155,372)$ 28,568$

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 71 (9) Deferred Inflows and Outflows (Continued)

Primary Government (Continued)

Business-type Activities Balance at Balance at
June 30, 2022 Increase Decrease June 30, 2023
2019 Electric Bonds Deferred Gain 417$ -$ (200)$ 217$ 2021 Water Bonds Deferred Gain 1,629 - (149) 1,480 GASB68 Change of Assumptions - - - - GASB68 Difference in Experience 942 2,776 (942) 2,776 GASB68 Net Difference on Pension Plan Investments 27,781 - (27,781) - GASB75 Change of Assumptions 4,794 4,437 (4,794) 4,437 GASB75 Difference in Experience 694 459 (694) 459 GASB87 Lease Related 1,288 327 (441) 1,174 37,545$ 7,999$ (35,001)$ 10,543$

In accordance with GASB Statement No. 65 revenue reco gnition requirements, the fo llowing revenues have been deferred, because the related cash was not available at year-end. The breakdown by fund is as follows:

Fund Name Amount
General Fund 313$
Public Safety 197
Health 970
Building Services 4
Transportation 62
Parking 1
Housing and Community Development 3,058
Project Management 1,651
Total unavailable revenues 6,256$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
72 Annual Comprehensive Financial Report | June 30, 2023 (10) Long-term Debt
Primary Governme
nt
Changes in long-term debt for the year ended June 30, 2023 are as follows:

Restated (1) Due in
Balance at Balance at Due within More than
Governmental Activities: June 30, 2022 Additions Reductions June 30, 2023 One Year One Year Notes payable:

Notes from Di rect
Borrowings (Rose Bowl) 439$ - $ (17)$ 422$ 17$ 405$ Section 108 4,200 - (300) 3,900 300 3,600 Total Notes payable 4,639 - (317) 4,322 317 4,005 Pension bonds:
2015 Taxable Pension Obligation Bonds 4,880 - (1,340) 3,540 1,380 2,160 Bond Premiums/(Discount) (48) - 17 (31) - (31) 2020 Taxable Pension Obligation Bonds 128,000 - (1,015) 126,985 1,030 125,955 Total pension bonds 132,832 - (2,338) 130,494 2,410 128,084 Certificate s of participation:
2015 COP Series A Refunding 2008 COP 46,765 - (2,195) 44,570 2,310 42,260 Bond Premiums/(Discount) 4,101 - (263) 3,838 - 3,838 Total ce rtificate s of participation 50,866 - (2,458) 48,408 2,310 46,098 Loan payable 4,937 - (955) 3,982 971 3,011 Total governmental activities
long-term debt 193,274$ -$ (6,068)$ 187,206$ 6,008$ 181,198$ (1) The beginning balance was restated to add existing subscription assets due to the implementation of GASB 96.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 73 (10) Long-term Debt (Continued)

Primary Government (Continued)

Restated (1) Due in
Balance at Balance at Due within More than
Business-type Activities: June 30, 2022 Reductions June 30, 2023 One Year One Year Revenue bonds:
2013A Electric Revenue Refunding Bonds 67,460$ (2,015)$ 65,445$ 2,015$ 63,430$ 2016A Electric Revenue Refunding Bonds 105,735 (3,170) 102,565 3,325 99,240 2017A Water Revenue Refunding Bonds 11,960 (610) 11,350 645 10,705 2019A Electric Revenue Refunding Bonds 6,430 (2,040) 4,390 2,145 2,245 2020A Water Revenue Refunding Bonds 28,380 (965) 27,415 1,000 26,415 2021A Water Revenue Refunding Bonds 22,325 (1,150) 21,175 1,150 20,025 Total Water and Power 242,290 (9,950) 232,340 10,280 222,060 2008 Paseo Colorado Taxable Revenue Bonds 20,400 (900) 19,500 900 18,600 Bond Premiums/(Discounts) 38,592 (1,850) 36,742 - 36,742 Total revenue bonds 301,282 (12,700) 288,582 11,180 277,402 Loan payable 1,932 (464) 1,468 476 992 Total business-type activities long-term debt 303,214$ (13,164)$ 290,050$ 11,656$ 278,394$

(1) The beginning balance was restated to add existing subscription assets due to the implementation of GASB 96.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

74 Annual Comprehensive Financial Report | June 30, 2023 (10) Long-term Debt (Continued)

Discretely Presented Component Units

Changes in discretely presented component units’ long-term debt for the year ended June 30, 2023 are as follows:

Restated (1) Additions Due in
Balance at Including Balance at Due within More than Discretely Presented Component Units June 30, 2022 Accretion Reductions June 30, 2023 One Year One Year Ce rtificate s of participation:
2006 COP (Conference Center Project) 5,578$ 272$ (5,850)$ -$ -$ -$ 2008 Refunding COP Series 2008A (Conference Center
Project) 134,720 - - 134,720 6,775 127,945 T otal ce rtificate s of participation 140,298 272 (5,850) 134,720 6,775 127,945 Revenue bonds:
2010A Revenue Bonds-Tax Exempt 24,866 1,691 - 26,557 - 26,557 2010B Revenue Bonds-Taxabl e Bui l d Ameri ca Bonds 106,660 - - 106,660 - 106,660 2010D Revenue Bonds-Taxable Recovery 7,400 - - 7,400 - 7,400 2016A Revenue Bonds-Partial Refunding 2010A Bonds 19,885 - (2,255) 17,630 4,310 13,320 2016A Bond Premium (Discount) 2,613 - (550) 2,063 - 2,063 2018A Revenue Bonds-Refunding / Tax Exempt
Fixed Rate 30,585 - - 30,585 - 30,585 2018B Revenue Bonds-Taxable 7,540 - (2,155) 5,385 665 4,720 2018AB Bond Premium/(Discount) 3,843 - (178) 3,665 - 3,665 Total revenue bonds (Rose Bowl renovation) 203,392 1,691 (5,138) 199,945 4,975 194,970 Total discretely presented component units
long-term debt 343,690$ 1,963$
(10,988)$ 334,665$ 11,750$ 322,915$

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 75 (10) Long-term Debt (Continued)

Governmental Activities:

Final
Principal
Issue Original Coupon Payment Outstanding at
Date Purpose Amount Interest Rate Date June 30, 2023
Detail of Long-Term Debt
Governmental Activities:

Notes payable:

Notes Payable-RBOC 1/15/2013 a 576 $ 2.10% 1/7/2043 422 $ Notes Payable-Section 108 10/29/2015 c 6,000 variable 8/1/2035 3,900 Total Notes Payable 4,322$
Pension bonds:
2015 Unrefunded Taxable Pension Obligation Bonds 5/5/2015 b 119,460 $ 2.82% to 3.47% 5/1/2025 3,540$ 2020 Taxable Pension Obligation Bonds 2/26/2020 b 131,805 1.60% to 3.10% 5/1/2045 126,985 Bond Premium (Discount) (31)
Total Pension Bonds 130,494$
Certificates of Participation:
2015 COP Series A Refunding 2008 COP 12/2/2015 d 55,350$ 3.00% to 5.00% 2/1/2038 44,570$ Bond Premium (Discount) 3,838
Total Certificates of Participation 48,408$
Loan Payable:
2020 Equipment Lease-Radio Equipment 1/15/2020 e 6,800$ 1.66% 1/15/2027 3,982$ Total Loan Payable 3,982$

Business-type Activities:

Final
Principal
Issue Original Coupon Payment Outstanding at
Date Purpose Amount Interest Rate Date June 30, 2023
Detail of Long-Term Debt
Business-type Activities:

Revenue bonds:
2008 Paseo Colorado Taxable Revenue Bonds 9/17/2008 f 28,800 variable 6/1/2038 19,500$ 2013A Electric Revenue Refunding Bonds 12/3/2013 i, j 80,485 4.25% to 5.00% 6/1/2043 65,445 2016A Electric Revenue Refunding Bonds 11/7/2016 k 119,440 4.00% to 5.00% 6/1/2046 102,565 2017A Water Revenue Refunding Bonds 3/13/2017 l 15,395 5.00% 6/1/2036 11,350 2019A Electric Revenue/ Refunding Bonds 8/1/2019 m 11,575 5.00% 8/1/2024 4,390 2020A Water Revenue Refunding Bonds 12/1/2020 g 30,130 5.00% 6/1/2050 27,415 2021A Water Revenue Refunding Bonds 12/1/2021 h 22,480 5.00% 6/1/2051 21,175 Bond Premium (Discount) 36,742
Total Revenue Bonds 288,582$
Loan Payable:
2019 Equipment Lease-Parking System 4/1/2019 e 3,252,694 2.67% 4/1/2026 1,468$ Total Loan Payable 1,468$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
76 Annual Comprehensive Financial Report | June 30, 2023 (10) Long-term Debt (Continued)
Component Unit Activitie
s:

Final
Principal
Issue Original Coupon Payment Outstanding at
Date Purpose Amount Interest Rate Date June 30, 2023
Detail of Long-Term Debt
Discretely Presented Component Units
Certificates of Participation:
2008 Refunding COP, Series 2008A
(Conference Center Project)
4/15/2008 CC2 134,720 variable 2/1/2035 134,720$
Total Certificates of Participation (PCOC) 134,720$
Revenue Bonds:
2010A Revenue Bonds-Tax Exempt Capital
Appreciation 11/18/2010 RB1 11,588 6.43% to 6.52% 3/1/2033 26,557$ 2010B Revenue Bonds-Taxable Build America Bonds 11/18/2010 RB1 106,660 7.00% to 7.15% 3/1/2043 106,660 2010D Revenue Bonds-Taxable Recovery Zone
Economic Development 11/18/2010 RB1 7,400 7.150% 3/1/2043 7,400 2016A Revenue Bonds-Partial Refunding 2010A
Bonds 10/5/2016 RB3 21,865 5.00% 4/1/2027 17,630
2016A Bond Premium (Discount) 2,063
2018A Revenue Bonds-(Refunding 2013A
Tax Exempt) 12/6/2018 RB2 30,585 5.00% 12/1/2042 30,585 2018B Revenue Bonds-(Refunding 2013B Taxable) 12/6/201 8 RB2 12,515 2.60% to 3.58% 12/1/2027 5,385 2018 AB Bond Premium (Discount) 3,665
Total Revenue Bonds (RBOC) 199,945$
a Refund 2006 Revenue Bonds
b Fire and Police Retirement
c Section 108 Note for Robinson Park Improvements
d Partially refund 2008 Certificates of Participation City Hall e Equipment Purchases, assets purchased collateralized debt f Refund 2000 Paseo Bonds
g Refund 2010A Water Revenue Bonds
h Refund 2011A Water Revenue Bonds and Capital Improvements to Water System iG T 5 I m p r o v e m e n t s
j Refund 2002 Electric Bonds and Capital Improvements to the Electric System k Refund 2008 Electric Bonds, repay Line of Credits and Capital Improvement to the Electric System l Refund 2007 Water Bonds
m Refund 2009 Electric Bonds and Capital Improvement to the Electric System CC1 Conference Center Improvements
CC2 Refund 2006B Certificates of Participation
RB1 Rose Bowl Stadium Renovation
RB2 Refund 2013 Rose Bowl Revenue Bonds
RB3 Partial refund 2010A Rose Bowl Revenue Bonds
Purpose of Debt:

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 77 (10) Long-term Debt (Continued)

The annual requirements to amortize as of June 30, 2023, are as follows:

Governmental Activities:

Year Ending
June 30 Principal Interest Principal Interest Principal Interest 2024 317 $ 125 $ 2,410 $ 3,845 $ 2,310 $ 1,991 $ 2025 318 117 3,210 3,780 2,420 1,875 2026 318 108 3,305 3,686 2,545 1,754 2027 318 100 3,370 3,620 2,670 1,627 2028 319 91 3,445 3,548 2,800 1,494 2029-2033 1,599 308 18,460 16,495 16,225 5,250 2034-2038 1,010 67 25,255 13,445 15,600 2,214 2039-2043 122 8 49,135 8,381 - - 2044-2047 - - 21,935 1,071 - - Bond Premium (Discount) - - (31) 3,838 - Total Payment 4,322 $ 923 $ 130,494$ 57,871 $ 48,408 $ 16,206 $ Pension BondsNotes Payabl e Certi fi cates of Parti cipati on

Year Ending
June 30 Principal Interest
2024 971$ 62$
2025 987 46
2026 1,004 29
2027 1,020 13
Total Payment 3,982$ 150$
Loan Payabl e

Business-type Activities:

Year Ending
June 30 Principal Interest Principal Interest
2024 11,180 $ 11,169$ 476$ 36$ 2025 11,705 10,650 489 23 2026 9,810 10,168 502 10 2027 10,175 9,725 - - 2028 10,655 9,264 - - 2029-2033 60,955 38,681 - - 2034-2038 64,945 24,472 - - 2039-2043 48,925 11,827 - - 2044-2048 19,955 2,933 - - 2049-2052 3,535 324 - - Bond Pre m ium (Discount) 36,742 - - - Total Payment 288,582$ 129,212$ 1,468$ 69$ Loan Payabl eRevenue Bonds

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

78 Annual Comprehensive Financial Report | June 30, 2023 (10) Long-term Debt (Continued)

Disclosure Related to Long-term Debt under GASB 88

The City’s outstanding notes from direct borrowings related to government activities of $422 is payable to Rose Bowl Operating Company, resulting from the refunding of revenue bonds activities in 2013 and does not have any special provision.

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

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

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

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

(Balance of page intentionally left blank)

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 79 (10) Long-term Debt (Continued)

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

In regard to the 2015A Certificates of Participation, the City’s outstanding bonds from public offerings related to government activities are payable from and secured by revenu e received by the City. In case of the City’s default, the following is the course of action:

The Authority or its assignee, in addition to all other rights and remedies it may have at law, will have the option to do the following:

(1) To terminate the Sublease in the manner provided in the Sublease on account of default by the City, and to retake possession of the Lease Property. In the event of such termination, the City agrees to surrender immediately possession of the Lease Property, without let or hindrance, and to pay the Authority or its assignee all damages recoverable at law that the Authority or it s assignee may incur by reason of default by the City, including, without limitation, any costs, loss or damage whatsoever arising out of, in connection with, or incident to any such retaking possession of th e Lease Property. Neither notice to pay rent nor to deliver up possession of the Lease Property given pursuant to law nor any proceeding in unlawful detainer, or otherwise, brought by the Authority or its assignee for the purpose of obtaining possession of the Leased Property nor the appointment of a receiver upon initiative of the Authority or its a ssignee to protect the Authority’s or its assignee’s interest under the Sublease shall of itself operate to terminate the Sublease, and no termination of the Sublease on account of default by the City shall be or become effective by operation of law or acts of the parties hereto, unless and until the Authority or its a ssignee shall have given written notice to the City of the election on the part of the Authority or its assignee to terminate the Sublease.

(2) Without terminating the Sublease, (i) to collect each installment of rent as it becomes due and enforce any other term or provision of the Sublease to be kept or performed by the City and/or (ii) to exercise any and all rights to retake possession of the Lease Property. In the event the corporation or its assignee does not elect to terminate the Sublease in the manner described in subparagraph (1) above, the City will remain liable and agrees to keep or perform all covenants and conditions contained in the Sublease to be kept or performed by the City and, to pay the rent to the end of the term of the Sublease or, in the event that the Lease Property is re-let, to pay any deficiency in the rent that results th erefrom; and further agrees to pay sa id rent and/or the payment of rent under the Sublease (without acceleration), notwithstanding the fact that the Authority or its assignee may have received in previous years or may receive thereafter in subsequent years rental in excess of the rental specified in the Sublease and notwithstanding an y retaking of possession of the Leased Property by the Authority of its assignee or suit in unlawful detainer, or otherwise, brou ght by the Authority or its assignee for the purpose of obtaining possession of the Leased Property. Should the Au thority or its assignee elect to retake possession of the Lease Property as provided in the Sublease, the City irrevocably appoints the Authority or it assignee as the agent and attorney-in-fact of the City to re-let the Lease Property, or any items thereof, from time to time, either in the Authority’s or its assignee’s name or otherwise, upon such terms and conditions and for such use and period as the Authority or its assignee may deem advisable and the Ci ty indemnifies and agrees to save harmless the Authority or its assignee from any costs, loss or damage whatsoever arising out of, in connection with, or incident to any retaking of possession of and re -letting of the Lease Property by the Authority or its assignee or its duly authorized agents in accordance with the provisions contained in the Sublease. The City agrees that the terms of the Sublease constitute full and sufficient notice of the right of the Authority or its assignee to re-let the Lease Property in the event of such reentry without effecting a surrender of the Sublease, and further agrees that no acts of the Authority or its assignee in effecting such re-letting with constitute a surrender of termination of the Sublease irrespective of the use or the terms for which such re-letting is made or the terms and conditions of such re-letting, or otherwise, but that on the contrary, in the event of such default by the City the right to terminate the Sublease will vest in the Authority or its assignee to be effected in the sole and
exclusive manner described in subparagraph (1) above. The City further waives the right to rental obtained by the Authority or its assignee in excess of the rental specified in the Sublease and conveys and release such excess to the Authority or

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
80 Annual Comprehensive Financial Report | June 30, 2023 (10) Long-term Debt (Continued)
Disclosure
Related to Long-term Debt under GASB 88 (Continued)
its assignee as compensation to the Auth ority or its assignee for its services in re-letting the Lease Property or any items thereof. The City further agrees to pay the Au thority or its assignee the cost of any alterations or repairs to the Lease Property or any items thereof necessary to place the Leased Property or any items thereof in conditions for re-letting immediately upon notice of the City of the completion and installation of such alterations or repairs.

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

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

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

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

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

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

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 81 (10) Long-term Debt (Continued)

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

accordance with the provisions contained in the Lease. Neither notice to pay rent or to deliver up possession of the Lease Premises given pursuant to law nor any entry or re-entry by the Authority nor any proceeding in unlawful detainer, or otherwise, brought by the Authority for the purpose of effecting such re-entry or obtaining possession of the Leased Premises nor the appointment of a receiver upon initiative of the Authority to protect the Authority interest under the Lease, will of itself operate to terminate the Lease , and no termination of the Lease on account of default by the City will be or become effective by operation of law or acts of the parties to the Lease, or otherwise, unless and until the Authority gives written notice to the City and the Commission of the election on the part of the Authority to terminate the Lease. The City agrees that no surrender of the Lease Premises or of the remainder of the term of the Lease or any termination of the Lease will be valid in any manner or for any purpose whatsoever unless stated or accepted by the Authority by such written notice.

(b) Without terminating the Lease, (i) to collect each installment of rent as it becomes due and enforce any other term or provision of the Lease to be kept or performed by the City or (ii) to exercise any and all rights of entry and re-entry upon the Leased Premises as provided. In the event the Authority does not elect to terminate the Lease in the manner provided for in the Lease, the City remains liable an d agrees to keep or perform all covenants and conditions in the Lease contained to be kept or performed by the City and , if the Leased Premises are not re-let, to pay the full amount of the rent annually to the end of the term of the Lease or, in the event that the Leased Premises are re-let, to pay any deficiency in rent that results therefrom; and further agrees to pay said rent and/or rent deficiency punctually at th e same time and in the same manner as provided in the Lease for the payment of rent under the Lease (without acceleration), notwithstanding the fact that the Authority may have received in previous years or may receive thereafter in subsequent years rental in excess of the rental specified in the Lease and notwithstanding any entry or re-entry by the Authority or suit in unlawful detainer, or otherwise, brought by the Authority for the purpose of effecting such re=entry or obtaining possession of the Lease Premises. Should the Authority elect to re-enter as provided in the Lease, the City irrevocably appoints the Authority as the agent and attorney-in-fact of the City to re-let the Leased Premises, or any part thereof, from time to time, either in the Auth ority’s name or otherwise, for use as public off-street vehicular parking facility upon such terms and conditi ons and for such period as the authority may deem advisable and, subject to the provisions of the Development Agreement, to remove all persons in possession thereof and all personal property whosesoever situate d in and upon the Leased Premises and to place such personal property in storage in any warehouse or other suitable place in the County of Los Angeles, State of California, for the account of and at the expense of the City, and the City exempts and agrees to save harmless the Authority from any costs, loss or damage whatsoever arising out of, in connection with, or incident to any such re-entry upon and re-letting of the Lease Premises and removal storage of such property by the Authority or its duly authorized agents in accordance with the provisions contained in the Lease; provided, however, that any such re-entry upon and re-letting of the Leased Premises its subject to the provisions of the Development Agreements. The City agrees that the terms of the Lease constitute full and sufficient notice of the right of the Authority to re-let the Leased Premises as provided in the Lease in the event of such re-entry without effecting a surrender of the Lease, and further ag rees that no acts of the Authorit y in effecting such re-letting will constitute a surrender or termination of the Lease irrespective of the use or the term for which such re-letting or otherwise, but that, on the contrary, in the event of such default by the City the right to terminate the Lease will vest in the Authority to be effected in the sole a nd exclusive manner provided for in the Lease. The City further waivers the right to any rental obtained by the Authority in exces s of the rental specified in the Lease
and conveys and releases such excess to the Authority as compensation to th e Authority for its services in re- letting the Leased Premises or any part thereof. The City further agrees to pay the Authority the cost of any alterations or additions to the Lease Premises or any part thereof necessary to place the Leased Premises or any part thereof in conditions for re-letting immediately upon notice to the City of the completion and installation of such additions or alterations.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
82 Annual Comprehensive Financial Report | June 30, 2023 (10) Long-term Debt (Continued)
Disclosure Related to
Long-term Debt under GASB 88 (Continued)
The City waives any and all claims for damages caused or which may be caused by the Authority in re-entering and taking possession of the Lease Premises as provided in the Lease and all claims for damages that may result from the destruction of or injury to the Leased Premise s and all claims for damages to or loss of any property belonging to the City, or any other person, that may be in or upon the Lease Premises.

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

In the event the Authority prevails in any action brought to enforce any of the terms and provisions of the Lease, the City agrees to pay a reasonable amount as and for attorney’s fees incurred by the Authority to enforce any of the remedies available to the Authority under the Lease, whether or not a lawsuit has been filed and whether or not any lawsuit culminates in a judgment.
(c) If (1) the City’s interest in the Lease or any part thereof be assigned or transferred without the written consent of the Authority, wither voluntarily or by operation of law or otherwise, or if (2) any proceeding under the United States Bankruptcy Code or any federal or state bankru ptcy, insolvency or similar law or any law providing for the appointment of a receiver, liquidator, trustee or similar official of the City or all or substantially all of its assets is instituted by or with the consent of the City, or it instituted with its consent and is not permanently stayed or dismissed within sixty days, or it the City offe rs to the City’s’ creditors to effect a composition or extension of time to pay the City’s debts, or asks, seeks or prays for reorganization or to effect a plan of reorganization or for readjustment of the City’s debt s, or if the City makes a general assignment or any assignment for the benefit of the City’s creditors, or if (3) the City will abandon or vacate any part of the Leased Premises, then the City will be deemed to be default under the Lease.

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

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

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

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 83 (10) Long-term Debt (Continued)

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

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

Application of Pledged Revenues and Other Funds after Default; Acceleration. If an Event of Default shall occur and be continuing, the City shall immediately transfer to th e Trustee all Pledged Revenues held by it and received thereafter and the Trustee shall apply all Pledged Revenues and any other funds then held or thereafter received by the Trustee under any of the provisions of the Indenture (except as otherwise provided in the Indenture) as follows and in the following order:

(1) To the payment of any expenses necessary in the opinion of the Trustee to protect the interests of the Owners of the Bonds and Parity Debt, including the costs and expenses of the Trustee and the Bondholders in declaring such Event of Default, and payment of reasonable fees and expenses of the Trustee (including reasonable fees and disbursements of its counsel and other agents) incurred in and about the performance of its powers and duties under the Indenture;

(2) To the payment of the whole amount of Bond Obligation then due on the Bonds and Parity Debt (upon presentation of the Bonds and Parity Debt to be paid, and stamping thereon of the payment if only partially paid, or surrender thereof if fully pa id) subject to the provisions of the I ndenture, with interest on such Bond Obligation at the rate or rates of interest borne by the respective Bonds and Parity Debt, to the payment to the persons entitled thereto of all installments of interest then due and the unpaid principal or Redemption Price of any Bonds and Parity Debt which shall have become due, whether at maturity or by call for redemption, in the order of their due dates, with interest on the overdue Bond Obligation and Parity Debt at the rate borne by the respective Bonds and Parity Debt, and, if the amount available shall not be sufficient to pay in full all the Bonds and Parity Debt due on any date, together with such interest, then to the payment thereof ratably, according to the amounts of principal or interest or Accreted Value (plus accrued interest) due on such date to the persons entitled thereto, without any discrimination or preference; and

(3) To the extent not paid pursuant to clause (1) or (2) above, to any Credit Provider any amounts then due and owing.

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

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

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

84 Annual Comprehensive Financial Report | June 30, 2023 (10) Long-term Debt (Continued)

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

In regard to the Discretely Presented Component Units as it relates to the Rose Bowl Lease Revenue Bonds series, 2010ABD, 2016A, and 2018AB in case of default, the following is the course of action:

Upon the happening of any of the events & default, then it shall be lawful fo r the Authority or its assignee, subject to the terms of the Lease, with the consent of the Majority Holder, to (i) exercise any and all remedies available or granted to it under the Sublease or pursuant to law, to the extent not inconsistent with the remedies granted under the Sublease or (ii) by mandamus or other suit, action or proceeding at law or in equity to enforce the Authority’s or its assignee’s rights against the City and to compel the City to perform and carry out its duties and obligations under the law and its covenants and agreements with the City as provided in the Sublease. Upon the breach of any agreement, condition, covenant or term contained in the Sublease required to be observed or performed by the City, the Authority or its assignee may not exercise any rights of entry upon or repossession of the Leased Property.

In the event of such default, the Authority or its assignee must thereafter maintain the Sublease in full force and effect and may only recover rent and other monetary charges as they become due, all without terminating the City’s right to possession of the Leased Property, regardless of whether or not the City has abandoned the Leased Property; this shall be the sole and exclusive remedy available against the city under the sublease or otherwise. The Authority shall have no right upon an event of default under the su blease by the city to accelerate the rental payments, terminate the sublease or re-enter the leased property.

(11) Derivative Instruments

Discretely Presented Component Units

Pasadena Center Operating Company (PCOC)

Conference Center Variable Rate Demand Refunding Certificates of Participation – SWAP No. 2

On September 18, 2006, the City entered into an interest rate swap agreement with DEPFA Bank related to the $135,500 Conference Center Auction Rate Certificates Se ries 2006B. The objective was to effectively change the City’s Variable interest rate to a synthetic fixed rate of 3.536%. Under the terms of the swap, the City pays the counterparty the fixed rate of 3.536% and receives a floating rate equal to 64% of the one month LIBOR rate. The swap has a notional amount of $133,000 representing a hedge ratio of 98.7% and declines according to the schedule set forth in the contract until the final principal payment on the certificates in 2034.

Objective and Terms of Hedging Derivative Instruments

The following table displays the objective and terms of PC OC’s hedging derivative instruments outstanding at June 30, 2023, along with the credit rating of the associated counterparty:

Cash Flow Notional Effective Maturity Counterparty
Hedge Objective Amount Date Date Term Credit Rati ng
Pay-fixed interest
rate swaps
Hedge of changes
in cash flows on
the 2008A COP's
$ 133,000 4/1/2011 2/1/2034
Pays 3.536%;
receive 64% of
LIBOR i ndex
Aa1/AA-

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

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

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 85 (11) Derivative Instruments (Continued)

Pasadena Center Operating Company (PCOC) (Continued)

On April 15, 2008, the City issued the 2008 Refunding Certif icates of Participation, Seri es 2008A in the amount of $134,720. These certificates were issued to refund the City’s Certificates of Participation (Conference Center Project), Series 2006B and finance the cost of execution of the 2008A Certificates of Participation backed by a letter of credit from Bank of America. The final maturity on the 2008A COPs was extended by one year to 2035 in order to reduce the reserve requirement and consequently, reduce the size of the issue by approximately $800. The refunded certificates are considered to be defeased and the liability has been removed from the component unit’s column of the statement of net position and recorded as a deferred amount upon a refunding.

During the fiscal year ending June 30, 2011, PCOC entered into a new agreement to take advantage of a more advantageous interest rate adjustment mode than the 2008 Series Bonds previously had. As a result, the former derivative instrument terminated and the new instrument has off-market term s. As a result, an up-front payment was received. The up-front payment is reported as a borrowing. The borrowing is amortized over the life of the swap and amortizes using the effective interest method for the life of the swap with adjustments to interest expense during each fiscal year. The original balance of the borrowing was $8,936. As of June 30, 2023, the balance was $3,699.

The C categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset or liability. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs. Level 3 inputs are significant unobservable inputs.

The Company has the following recurring fair value measurements as of June 30, 2023:

Beginning Accrued Ending
June 30 Balance Interest Payment Balance
2024 3,699$ 157 $ (635)$ 3,221 $ 2025 3,221 136 (601) 2,756 2026 2,756 115 (564) 2,307 2027 2,307 95 (522) 1,880 2028 1,880 77 (477) 1,480 2029 1,480 59 (428) 1,111 2030 1,111 44 (374) 781 2031 781 30 (315) 496 2032 496 17 (251) 262 2033 262 8 (182) 88 2034 88 1 (89) -

The Company categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset or liability. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs. Level 3 inputs are significant unobservable inputs.

The Company has the following recurring fair value measurements as of June 30, 2023:

Level
Measurements by Fair Value Level 1 2 3
Derivative instrument liability 4,432$ -$ 4,432$ -$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
86 Annual Comprehensive Financial Report | June 30, 2023 (11) Derivative Instruments (Continued)
Pasadena Center Operating Company (PCOC) (Continued)
Derivative Instrument Liability
The fair value balance and notional amount of the derivative instrument outstanding at June 30, 2023, classified by
type, and the changes in fair value of such derivative instruments for the year then ended are as follows:

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

Credit risk: PCOC is exposed to credit risk on hedging derivative instruments to the extent that value of the swap is position from PCOC’s perspective. The aggregate fair va lue of hedging derivative instruments was negative as of June 30, 2023, and therefore PCOC had no credit risk exposure.

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

Basis risk: PCOC is exposed to basis risk on its pay-fixed in terest rate swap because the variable-rate payments received by PCOC on these hedging deri vative instruments are based on a rate or index other than interest rates PCOC pays on its hedged variable-rate debt, which is typically remarketed every seven (7) days. As of June 30, 2023, the weighted-average interest rate on the PCOC’s hedged variable-rate debt is 2.818%, while 64 percent of LIBOR is

3.306%.

Termination risk: PCOC or its counterparty may terminate a derivative instrument if the other party fails to perform under the terms of the contract. The derivative contract uses the International Swap Dealers Association Master Agreement which includes standard termination events such as failure to pay and bankruptcy. In addition, PCOC may optionally terminate the agreement on any date. If at the time of a termination, PCOC may be required to make a termination payment to its counterparty. If PCOC had to terminate the Swap for any reason on June 30, 2023, the maximum exposure/loss would have been $8,338.

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

Cash Flow
Hedge Classification Amount Classification Amount Notional Pay-fixed interest
rate swaps Deferred Outflow $ (6,332) Liability $ 4,432 $ 133,000 Changes in Fair Value Fair Value at June 30, 2023

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 87 (12) Fund Balance

Fund Balances, Governmental Funds

On the Governmental Balance Sheet, the fund balances are reported in the aggregate in the classifications defined by GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions . Fund balances by classification for the year ended June 30, 2023, are as follows:

Nonmajor
Housing Project General Governmental
General Fund Successor Management Debt Service Funds Total Fund Balances
Nonspendable:

Prepaid and other assets 811$ -$ -$ -$ 149$ 960$ Permanent fund principal - - - - 1,433 1,433 Notes receivable 13,505 - - - - 13,505 Total Nonspendable 14,316 - - - 1,582 15,898 Restricted for:

Air Quality Improvement - - - - 303 303 Notes receivable - - - - 61,269 61,269 Allowance for uncollectible long-
term receivables - - - - (61,269) (61,269) City Charter/Capital projects - - 521 - 6,754 7,275 Debt service - - - 5 1,852 1,857 Culture and literacy - - - - 3,322 3,322 Housing and Community Development
Housing funds - 1,021 - - 3,625 4,646 CDBG - - - - 16 16 Inclusionary Housing Trust - - - - 3,499 3,499 Rental Assistance programs - - - - 2,120 2,120 Other purposes - - - - 551 551 Public Safety
Asset Forfeiture - - - - 2,922 2,922 Public Safety Augmentation - - - - 1,663 1,663 Other Public Safety Programs - - - - 266 266 Section 108 HUD Loan Security for
Robinson Park Recreation Center
Rehabilitation 400 - - - - 400 Section 115 Trust - Pension 12,196 - - - - 12,196 Transportation - - - - 40,139 40,139 Total Restricted 12,596$ 1,021$ 521$ 5$ 67,032$ 81,175$ (Continued)

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

88 Annual Comprehensive Financial Report | June 30, 2023 (12) Fund Balance (Continued)

Fund Balances, Governmental Funds (Continued)

Nonmajor
Housing Project General Governmental
General Fund Successor Management Debt Service Funds Total Fund Balances, continued
Total from previous page 26,912$ 1,021$ 521 $ 5 $ 68,614 $ 97,073$ Committed to:

Public Safety 624 - - - - 624 Building Plan Check and Permit Services - - - - 11,747 11,747 Building Services - General Plan
Maintenance Fee and
Technology Fee 613 - - - 8,349 8,962 Capital Projects 12,000 - 571 - 8,849 21,420 Emergency Contingency 43,953 - - - - 43,953 Operating Reserve 14,651 - - - - 14,651 Libraries - - - - 13,742 13,742 Pasadena Center Capital
Improvement Trust - - - - 58 58 Transportation 144 - - - 4,342 4,486 Sewer Construction and
Maintenance - - - - 16,106 16,106 Underground Utilities - - - - 37,971 37,971 Total Committed 71,985 - 571 - 101,164 173,720 Assigned to:

General Government 45,267 -
- - - 45,267 Capital Projects 12,140 - 1,361 - - 13,501 Total Assigned 57,407 - 1,361 - - 58,768 Unassigned 8,307 - - - (7,050) 1,257 Total Fund Balance 164,611$ 1,021$ 2,453 $ 5 $ 162,728 $ 330,818$

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 89 (13) Restricted Net Positi on – Stranded Investments

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

In November 2006, the City Council a pproved the Stranded Investment Reserv e Utilization Plan (Plan). In January 2009, in accordance with the Plan an d a previously approved Prepayment Agreement (Agreement), PWP utilized approximately $80,000 of the reserve f unds to complete an economic defeasan ce of selected bonds for IPP. As authorized in the Agreement, the Intermountain Power Agency (IPA) issued approximately $70,000 of subordinated notes to PWP, the payments for which will offset a portion of the debt service associ ated with the economically- defeased bonds, thereby reducing the cost of energy purchased from IPP.

As of June 30, 2023, the Stranded In vestment Reserve balance was $40,34 1. The details of the additions and subtractions, in the Reserve, that occurred during fiscal year 2023 are shown below:

Restricted Cash and Investment
Beginning balance 41,666$
Interest earni ngs 983
Market gain (l oss) (2,382)
Restricted cash and investment ending balance 40,267$
IPA Subordinated Notes
Balance at Balance at
June 30, 2022 Reduction June 30, 2023
Notes recei vable 1,440$ (1,366)$ 74$ Premium 674 (674) - Total IPA subordinated notes 2,114$ (2,040)$ 74$ Restricted for Stranded Investments at June 30, 2023 40,341$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

90 Annual Comprehensive Financial Report | June 30, 2023 (14) Accumulated Fund Deficits

The following funds reported accumulated deficits in their respective fund balances/net position at June 30, 2023:

Due to
Operations
Due to GASB 68
Implementation
Due to GASB 75
Implementation
Due to GASB 96
Implementation
Total
Accumulated
Deficit
Governmental Activities:

Special Revenue Funds:

Health (6,901) $ - $ - $ - $ (6,901)$ Internal Service Funds:

Computing and Communications 12,167 (15,659) (2,499) (888) (6,879) Benefits (21,464) (77,770) (190) - (99,424) Workers' Compensation (24,839) (10,470) (222) - (35,531) General Liability (13,855) (551) (127) (82) (14,615) 311 Call Center 619 (627) (158) (38) (204)

Management’s plans for resolution of the accumulated fund deficits are as follows.

Health

The Health Fund was established to account for grants for the provision of public health services which are restricted by grant award agreement as well as state health realignment funding requirements. The Pasadena Public Health Department continues its steadfast commitment to offering programs and services that ensure public safety and improve public health outcomes while ma intaining systems and controls for a financially sustainable operation. In fiscal year 2023, the Department ended the year with a shortfall largely attributable to COVID-19 pandemic response; however, the City requested FEMA reimbursement for pa ndemic-related expenses and is awaiting FEMA response.

To address continued fiscal challenges, the Department will continue to expedite processing of grant reimbursement requests, maintain monitoring of program and financial performance.

Computing and Communications

The Computing and Communications Fund was established to historically track and fund the operations and lifecycle capital replacement of the City’s Department of Information Technology, which provides centralized IT support across all City departments. In fiscal year 2023, the deficit decreased compared to fiscal year 2022 primarily attributable to a positive increase from operations of over $3,500. On average, there remained a significant number of personnel vacancies due to resignations and internal promotions that kept personnel costs lower than expected, but revenues increased as well due to an increase of over 11% to the fixed rates charged to departments. However, this was offset in part by an increase in GASB 68 costs and the debut of GASB 96 costs, which combined increased by almost $2,700.

The deficit is being monitored by management, and an appropriate revenue recovery plan to gradually reduce the deficit is in place, as IT is solely funded by the fixed rates it charges to its cu stomer departments. To that end, for fiscal year 2024, fixed rates were increased by over 7% compared to fiscal year 2023 in an effort to keep pace with both personnel and inflationary cost increases to services and supplies. The continuing challenge in the coming years will be to maintain enough growth in revenues to keep pace with the costs needed to provide effective service, while also combatting any financial pressures that may impact the fund’s ability to absorb these increases.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 91 (14) Accumulated Fund Deficits (Continued)

Benefits

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

A large deficit is likely to be shown in this fund at the end of each fiscal year, as the largest component represents a portion of the unfunded pension liability, and the second largest portion of the deficit reflects the total liability from accrued leave balances. Each year, the city reviews the rates charged to Departments to adjust to an appropriate recovery level and keep the deficit as low as possible or re duce it. The overall fiscal year 2023 fund balance deficit increased by $6,100. This is primarily a ttributable to revenue of $40,300 exceeded by expenses of $46,400. The expense increases are attributable to increased pensio n contributions, benefits, and compensation. To better manage the short-term costs and long-term liabilities associated with pensions and OPEB, the City set aside $10,500 into a Section 115 pension trust and $2,000 into a Section 115 OPEB trust in fiscal year 2018.

Workers’ Compensation

The City has established a Workers’ Compensation Fund to provide benefits for potential claim and cost expenditures for workers’ compensation claims agains t the City. In addition to any monies held in this Fund, the City makes an annual appropriation based upon its estimate of claim and expense payments during the fiscal year. Management has reviewed the deficit, and is working to correct the situation through a combination of injury prevention programs, training programs, reduction of claim severity and claim frequency, return-to-work procedures, medical management and minimizing delays in all aspects of claims handling. An increase in rates charged to the Departments remains a part of the annual budget process. The City initiated the Carve Out program with Pasadena Police Officers Association (PPOA) and that program remains in effect through all of the current fiscal year. That program is focused on ensuring timely delivery of treatment that will: 1) expedite claim resolutions and 2) reduce costs and litigation. All of this will continue to reduce the negative fund balance.

General Liability

The City has established a General Liability Fund to provide for the potential claim and cost expenditures for general liability claims against the City. In addi tion to any monies held in this fund, the City makes an annual appropriation based upon its estimate of claim and expense payments during the fiscal year. In fiscal year 2019, there was a deficit primarily attributable to lower rates charged to Departments. In fiscal years 2020 and 2021, the City increased rates to collect an additional $1,200 from Departments. Additi onally, in fiscal year 2020 the General Fund transferred $5,000 into this fund to help address increased claims and impr ove the deficit. In fiscal year 2023 a new allocation methodology was put in place to collect an additional $5,000 annually to cover increased settlements and self-insured retention amounts, as a result it reduced the deficit.

311 Call Center

The 311 Call Center Fund will continue to report a deficien cy in fiscal years 2024 and 2025 due to the inclusion of GASB 68 and GASB 75. The 311 Call Center Fund receives direct revenue transfers from city departments to support the cost of service provided by the 311 Call Center oper ations. The fund is not structured, at this time, to collect additional revenue to cover the deficit caused by the inclusion of the GASB pronouncements. The Department is actively seeking a solution-based alternative with the Ci ty’s Department of Finance to address the deficit and restructure the 311 Call Center Fund by fiscal year 2026.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
92 Annual Comprehensive Financial Report | June 30, 2023 (15) Excess of Expenditures over Appropriations
The following funds reporte
d an excess of expenditures over appropriations at June 30, 2023:

Budget Actual
Variance with
Final Budget
Positive
(Negative)
General Fund:

General Government
Attorney 11,628$ 11,949$ (321)$ Public Safety
Fire 60,073 61,231 (1,158)
Capital Outlay 219 2,556 (2,337)
Debt Service
Lease payments - 644 (644)
Subscription payments - 447 (447)
Interest - leases and subscriptions - 33 (33)
Project Management Fund:

General Government - 225 (225)
Debt Service
Lease payments - 42 (42)
Subscription payments - 79 (79)
Health Fund:

Capital Outlay 5 193 (188)
Debt Service
Lease payments - 26 (26)
Subscription payments - 48 (48)
Interest - leases and subscriptions - 2 (2) Building Services Fund:

Debt Service
Subscription payments - 3 (3)
Sewer Construction and Maintenance Fund:

Debt Service
Subscription payments - 2 (2)
Transportation Fund:

Capital Outlay - 169 (169)
Debt Service
Lease payments - 49 (49)
Subscription payments - 27 (27)
Interest - leases and subscriptions - 1 (1) Library Services Fund:

Capital Outlay - 148 (148)
Debt Service
Lease payments - 149 (14 9)
Subscription payments - 50 (50)
Interest - leases and subscriptions - 3 (3) Parking Fund:

Debt Service
Lease payments - 9 (9)
Housing and Community Development Fund:

Debt Service
Lease payments - 315 (315)
Subscription payments - 69 (69)
Interest - leases and subscriptions - 15 (15)
Donated Funds:

Culture and Leisure 370 373 (3)

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 93 (15) Excess of Expenditures over Appropriations (Continued)

General Fund:

General Government – Attorney
The City Attorney Department incurre d more litigation and outside legal service expense than the budgeted amount due to establishment of the Pasadena Rental Housing Board, complex employment and police litigation, and other matters.

Public Safety – Fire
The Fire Department’s incurred approximately $1,150 in personnel costs from an unbudgeted Recruitment Academy.

Capital Outlay
Capital Outlay expenditures in excess of appropriatio ns related to implementation of unbudgeted GASB implementations: GASB Statement No. 87, Leases for $506 and GASB Statement No. 96, Subscription-Based Information Technology Arrangements for $624. GASB Statement implementations are further discussed in the detailed notes. Additionally, the City made additional unbudgeted capital outlays including $1,000 for land and $206 for vehicle and equipment.

(16) Pledged Revenue

Pasadena Water and Power has a number of outstanding debt issuances that are collatera lized by pledged electric and water revenues. The amount and term of the remainder of these outstanding debts are presented in Note 9. The purpose of the debt issuances was for the financing of ce rtain Light and Power and Water projects. For the current year, debt service payments as a percentage of the pledged gross revenue (net of certain expenses) are indicated in the table below. These percentages also approximate the re lationship of debt service of pledged revenues for the remainder of the term of these debts:

Debt Service as
Annual Amount of Pledged Annual Debt a Percentage of
Description of Pledged Revenue Revenue (net of expenses) Service Payments Pledged Revenue Light and Power revenues 67,863$ 15,712$ 23% Water revenues 17,822 5,858 33%

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
94 Annual Comprehensive Financial Report | June 30, 2023 (17) Transfers
Primary Government
The following is
a summary of transfers in and out for the year ended June 30, 2023:

General
Project Debt
General Management Service
Transfers Out Fund Fund Fund
General Fund -$ 8,299$ A 7,324$ B
Project Management Fund - - -
Nonmajor Governmental Funds - 19,945 D -
Light and Power Fund 18,000 F - -
Water Fund 1,894 - -
Off-Street Parking Fund - 55 -
Nonmajor Enterprise Funds 773 69 -
Internal Service Funds - 1,715 -
Total 20,667$ 30,083$ 7,324$
Transfers In
Primary Governme
nt
(A) Transfers of $8,299 from General Fund to Project Management Fund mainly consist of:
• $4,363 for the improvement of Municipal buildings including $3,002 for fire station renovations; • $2,296 for various street improvements including $1,780 for sidewalk improvements; • $674 for the technology upgrade projects, including $642 for the police computer-aided dispatch; and records management system replacement project; and
• $600 for various transportation projects.
(B) Transfer of $7,324 from General Fund to General Debt Service Fund mainly consist of:
• $4,758 to pay pension obligation for Bonds Series 2020AB; • $1,506 to pay taxable pension obligation for Bonds Series 2015; and • $1,033 to pay for equipment purchase note payable.
(C) Transfers of $19,361 from General Fund to Nonmajor Governmental Funds mainly consist of:
• $12,213 to support the Library Services Fund;
• $4,101 to pay for 2015A Refunding COPs; and
• $1,227 to other housing funds.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 95 (17) Transfers (Continued)

Light
Nonmajor and Nonmajor Internal
Governmental Power Enterprise Service
Funds Fund Funds Funds Total
19,361$ C -$ - $ 219 $ 35,203 $ 27 - 71 339 437 - 5,311 E - 13 25,270 - - - - 18,000 - - - - 1,894 - - 53 88 196 - - - 435 1,277 - - - - 1,715 19,388$ 5,311$ 123$ 1,095$ 83,992$ Transfers In

(D) Transfers of $19,945 from Nonmajor Governmental Funds to Project Management Fund mainly consist of:
• $7,255 from Residential Development Impact Fund;
• $2,929 from Road Maintenance and Rehabilitation Account; • $2,780 from Community Development Block Grant Fund;
• $2,259 from Sewer Facility Charge Fund and Sewer Construction Management Fund; • $1,907 from Traffic Reduction Transportation Fund; and • $782 from Gas Tax Fund.

(E) Transfers of $5,311 from Nonmajor Governmental Funds to Light and Power Fund to pay for the underground utilities program expenses.

(F) Light and Power Fund contributed $18,000 to the General Fund; the amount transferred may be expended for any municipal purpose.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

96 Annual Comprehensive Financial Report | June 30, 2023 (18) Self-insurance

The City maintains self-insurance and excess insurance programs for various lines of liability coverage. Liability claims are self-administered within the Self-Insured Retention (SIR). For the period of July 1, 2022 to June 30, 2023, excess liability insurance was purchased with limits of $25,000 in excess of $5,000 per occurrence SIR. Excess workers’ compensation insurance is at $4,000. Workers’ compensation claims for all City workers, including public safety, i.e., fire and police, are administered by a third-party administrator, Acclamation Insurance Management Services (AIMS).

The City maintains a few self-administered claims for dates of injury prior to July 1, 2012.

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

Number of Existing
Workers’ Compensation
Claims
Retention
Amount
9 $ 500
8 250
1 100
5 50
Total 23

No workers’ compensation injury incu rred since the SIR has been $3,000. City has received $3,185 in workers’ compensation excess recovery. The City is requesting $176 in workers’ compensation excess recovery currently.

The Civil Division of the Department of the City Attorney/City Prosecutor, prim arily using in-house civil attorneys, controls litigated liability claims. A claim is a demand seek ing damages allegedly arising out of a wrongful act for which the claimant asserts the City is responsible. During fiscal year 2023, t h e C i t y p a i d $ 7 , 8 9 2 i n c l a i m s a n d settlement payments. For new claims with alleged dates of loss within fiscal year 2023, the overall total incurred was $1,431. Liability against a public entity is mitigated by existing laws/statutes/codes, which provide certain immunities.

The City currently has approximately seven (7) active litig ation cases, each with rese rves estimated in excess of $2,000.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 97 (18) Self-insurance (Continued)

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

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

The City renewed property insurance on all its buildings, with a combined total scheduled insured value of $1,150,000. The policy includes coverage for fine arts, valuable papers, business personal property, business income, and extended business income or rental value. Policy limit s are $250,000 with a deductible of $25 for earthquake sprinkler leakage, $100 for flood, and $25 for any other covered loss. Exclusions include earthquake, collapse of buildings and nuclear hazard. During February and March 2023, various City properties incurred storm damages due to unprecedented rainfall. Claims were filed against the f iscal year 2023 policy in the process and pursuit of FEMA reimbursement. Coverage details for those claims are still being assessed.

The City’s property: power plant boiler and machinery polic y, with total insured valu e of $422,317. The program provides property and equipment brea kdown coverage for City’s power plant facilities an d machinery. The policy affords coverage for risks of loss or damage, including boiler explosion and machinery breakdown. Policy limits are $250,000 with deductibles of $750 per occurrence for all other property damage, and $1,500 per occurrence for machinery breakdown of GT1, GT3, and GT5. The City did not receive new claims under this policy for fiscal year 2023.

In an effort to protect the City’s assets and transfer po tential risk, the City also pur chases the following insurance policies: medical malpractice; pollution liability; terrorism – Chemical, Biologic al or Biochemical, Radiological or Nuclear (CBRN); auto physical damage; cyber liability; fiduciary, including a policy purchased for and by the Fire and Police Retirement System; and crime policies.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

98 Annual Comprehensive Financial Report | June 30, 2023 (18) Self-insurance (Continued)

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

Rose Bowl Operating Company (RBOC) is entitled to indemnity from the City, and its losses are included in the City’s general liability self-insurance program and under the ex cess general liability policies. RBOC carries statutory workers’ compensation insurance with no retention. Br ookside Golf Course is also managed through RBOC. Major Rose Bowl tenants include the Pasadena Tournament of Roses, UCLA Football, Anschutz Entertainment Group, and the R.G. Canning Swap Meet. Tenants provide insurance, naming City of Pasadena as additional insured on their policies.

The claims liability reported in the General Liability and Workers’ Compensation Internal Service Funds is based on the requirements of GASB Statement No. 10 (Accounting and Financial Reporting for Risk Financing and Related Insurance Issues), which requires a liability for claims to be repo rted if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated, including incurred but not yet reported claims. As of June 30, 2023, General Liability claims payable amounted to $12,731 of which $10,62 2 is estimated to be paid within one year. Workers’ Compensation claims payable amounted to $41,132 of which $17,881 is estimated to be paid within one year.

Beginning Fiscal Year Claim Ending
Fiscal Year Liability in Estimates Payments Liability
2021-22 42,044$ 64,785$ (30,677)$ 76,153$ 2022-23 76,153 5,646 (16,936) 64,863

(19) Deferred Compensation Plan

For the benefit of its employees, the City has adopted a deferred compensation plan in accordance with Section 457 of the Internal Revenue Code. Generally, eligible employees may defer receipt of a portion of their salary until termination, retirement, death, or an unforeseeable emergency. As a result of changes under the Small Business Job Protection Act of 1996, all amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts must be held in a trust, custodial account, or annuity contract for the exclusive benefit of the employee participants and their beneficiaries.

The plan has a Plan Administrator and an oversight commi ttee. The five member committee is comprised of three elected City employees and two members of the csomm unity appointed by the City Council. The oversight committee members basically monitor the plan activity, pe rformance of investment options and ensure that the Plan Administrator carries out his duties and responsibilities. The Plan Administrator, the Director of Finance or his designee, is responsible for the day to day administration. The Plan Administ rator has authority to sign all legal agreements with approved plan providers, and ensures proper amounts are withheld, immediately transferred to the trust, and invested in accordance with participants’ directions.

As of June 30, 2023 the market value of the City’s de ferred compensation plan assets amounted to $350,687.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 99 (20) Pension Plans

Each full-time employee and each part-time employee (with 1,000 hours or more of service) of the City is a member of either the FPRS or CalPERS. Both plans are defined benefit pension plans and are described individually in the following notes.

Summary of Pension Plans
Net Pension
Liability
Pension
Expense
Deferred Outflows
Related to Pension
Deferred Inflows
Related to Pension
Pasadena Fire and Police Retirement Plan (FPRS) 18,573$ 4,709$ 5,594$ -$ CalPERS - Safety Plan 216,070 29,561 76,047 566 CalPERS - Miscellaneous Plan 340,674 37,805 117,031 10,154 Total Plans 575,317$ 72,075$ 198,672$ 10,720$

Pasadena Fire and Police Retirement System (FPRS)

Plan Description

FPRS (the System) is a single-employer defined benefit plan governed by a Retirement Board (Board) under provisions of the City Charter. The plan covers all fire and police personnel who were employed by the City prior to July 1, 1977, except for those who elected to transfer to CalPERS when FPRS closed to new member in June 2004. In June 2004, active members were provided a one-time opportunity to transfer from FPRS to CalPERS as provided by an agreement with the City. Once transferred to CalPERS, retirement benefits for all fire and police personnel employed thereafter are provided under CalPERS. The plan provides retirement, death, and disability benefits.

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

Cash and Investments
Unrestricted pooled cash 1,123$
Designated pooled cash 1,250
Cash with master custodian 255
Cash and cash equivalents 2,628
Short-term investments 4,877
Investments 102,663
Total investments 107,540
Total cash and investments 110,168$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

100 Annual Comprehensive Financial Report | June 30, 2023 (20) Pension Plans (Continued)

Pasadena Fire and Police Retirement System (FPRS) (Continued)

Funding Policy

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

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

Under this new agreement, the City’s minimum funding percentage schedule and reimbursement cap in Agreement No. 16,900 carried forward, and the City agreed to prov ide a contribution of $46,600 to the System through the issuance of pension obligation bonds. Agreement No. 20,823 provided that the annual required supplemental contribution would be actuarially calculated using an interest assumption of 6% and an inflation rate of 3% beginning with the June 30, 2012 valuation. Pursuant to this agreem ent, future annual valuations after June 30, 2012, shall adopt an assumed interest rate and inflation assumption based on analysis performed by the System’s actuary and after seeking input from the City and System’s investment consultant. Agreements No. 16,900 and No. 20,823 state that if the minimum funding deficit is greater than $3,000 in a year, the City will pay $3,000 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, 2023, the funded percentage of the System, calculated in accordance with Agreement No. 20,823 and Agreement No. 16,900, was 84.1%. As provided by Contribution Agreement No. 16,900, if the funded percentage is below the minimum funding percentage of 80% for fiscal year 2023, the City will reimburse the System in the following fiscal year subject to certain reimbursement limit s. Based on the June 30, 20 23 actuarial valuation, there was no funding deficiency below the funding requirem ent of 80% as of June 30, 2023. Thus, no required supplemental contribution is owed to the System by the City during fiscal year ended June 30, 2023.

The components of the net pension liability of the System as of June 30, 2023 are as follows:

T ot al Pe nsion L iability 122,950$
Beginning Fiduciary Net Position (FNP) 111,662$
Net Investment Income 5,013
Benefit Payments (11,954)
Administrative Expenses (344)
Plan Fiduciary Net Position 104,377
Ne t Pe nsion L iability/(A sse t) 18,573
Plan Fiduciary Net Position as a
Percentage of Total Pension Liability 84.9%
FPRS

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 101 (20) Pension Plans (Continued)

Pasadena Fire and Police Retirement System (FPRS) (Continued)

Actuarial Methods and Assumptions Used to Determine Total Pension Liability

Actuarial valuations of an ongoing plan involve estima tes of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and cost trends. Actuarially de termined amounts are subject to continual review or modification as actual results are compared with past expectations and new estimates are made about the future. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employers and plan members) and incl ude the types of benefits provided at the time of each valuation. Following the recommendation provided by the System’s Actuary on May 26, 2022, the Board later accepted the recommended assumptions for use in the preparation of the actuarial valuation for the year ended June 30, 2023.

Discount Rate 5.25%*
Inflation 2.50%
Sal ary Increases No acti ve empl oyees
Mortality
Expected Geometric Real Rate of Return
Large Cap US Equity 3.77%
Small Cap US Equity 4.45%
Foreign Equity 4.41%
Domestic Core Fixed Income 0.53%
Senior Bank Loans 1.64%
Short-Term Investment-Grade Bonds 0.05%
TIPS -0.24%
Risk Parity 3.38%
Real Estate 3.81%
Inactive employees or beneficiaries currently receiving benefits** 183 Inactive employees entitled to but not yet receiving benefits - Active empl oyees -
Total participants 183
** Alternativ e pay ee data for 23 Domestic Relations Order (DRO) agreements prov ided separately from employ ee-retiree for first time in 6/30/23 v aluation. Benefits for these alternativ e pay ee prev iously included in the corres ponding retiree's benefits . All DRO a greements provide benefits to the a lternative pay ees for the lifetime of the Sy stem's retiree.

Actuarial Assumptions
*
Disc ount Rat e r eflec t s assumed inv est ment ex pense of 1 5 basis point s. 10-year geometric expected real rates of return from
Board-approved actuarial valuations, as prepared by
Bartel Associates, LLC (June 30, 2013-2021) & Foster &
Foster, Inc. (June 30, 2023)
CalPERS 2000-2019 Experience Study,
Mortal i ty Improvement Scal e 80% Scal e MP-2021

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
102 Annual Comprehensive Financial Report | June 30, 2023 (20) Pension Plans (Continued)
Pasadena Fire and
Police Retirement System (FPRS) (Continued)
Discount Rate
The discou
nt rate of 5.25% was selected by the System actuary and approved by the Board to measure the June 30, 2023 TPL for accounting purposes. The discount rate is the expected real long-term rate of return, plus the inflation assumption of 2.50%, less assumed inve stment expenses of 15 basis points. Th e expected long-term real rate of return is compared at the 50% and 55% confidence levels of capital market assumptions. Based on the assumptions, the System's Fiduciary Net Position was projected to be available to make all projected future benefit payments. The discount rate used as of June 30, 2023 is the same as the discount rate of 5.25% used as of June 30, 2022.

Asset Class
Target Asset
Allocation
Large Cap US Equity 16.00%
Small Cap US Equity 4.00%
Foreign Equity 20.00%
Domestic Core Fixed Income 25.00%
TIPS 5.00%
Short-Term Investment-Grade Bonds 10.00%
Senior Bank Loans 5.00%
A lte rnative (Risk Parity) 5.00%
Real Estate 10.00%
Total Portfolio 100.00%
Changes in Pension Liability
AB C = B - A
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Asset/(Liability)
Balance at June 30, 2022 126,291$ 111,662$ (14,629)$ Changes Recogni zed for the
Measurement Period:

Service Cost - - -
Interest on the Total Pension Liability 6,316 - (6,316) Di fferences between Expected and Actual
Experience 482 - (482)
Contribution from Employer - - - Contribution from Employees - - - Net Investment Income - 5,013 5,013
Benefi t Payments (11,954) (11,954) -
Administrative Expense - (344) (344)
Change of Assumptions 1,815 - (1,815)
Net Change during 2022-23 (3,341) (7,285) (3,944)
Balance at June 30, 2023 122,950$ 104,377$ (18,573)$ Ending Fiduciary Net Position as a
Percentage of the Total Pension Liability 84.9%
Pension Expense 4,709$
Increase / (Decrease)

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 103 (20) Pension Plans (Continued)

Pasadena Fire and Police Retirement System (FPRS) (Continued)

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

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

5.25% to 4.25%, revealed an increase in the NPL by $9,5 21 to a total NPL of $28,094. Conversely, increasing the discount rate by 1%, from 5.25% to 6.25%, revealed a corr esponding decrease in the NPL of $8,347 to total NPL of $10,226 as of June 30, 2023.

Discount Rate -1%
(4.25%)
Current Discount
Rate (5.25%)
Discount Rate +1%
(6.25%)
N e t Pe nsion L iability (N PL ) 28,094 18,573 10,226 NPL Funded Percentage 78.8% 84.9% 91.1%
FPRS

Deferred Outflows and Deferred Inflows of Resources Related to Pensions

Deferred Outflows of
Resources
Deferred Inflows of
Resources
Net Deferred of
Resources
Projected versus Actual Earnings on
Investments 5,594$ -$ 5,594$ Total 5,594$ -$ 5,594$ FPRS

Measurement Period
ended June 30:

Deferred
Outflows/(Inflows) of
Resources
2024 1,181 $
2025 603
2026 3,704
2027 106
FPRS

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
104 Annual Comprehensive Financial Report | June 30, 2023 (20) Pension Plans (Continued)
CalPERS Miscellaneous a
nd Safety Plans
Plan Description
All qualified permanent and probationary
employees are eligible to participate in the City’s Miscellaneous Plan and Safety Plan (Plans), agent multiple-employer defined bene fit pension plans administered by the California Public Employees’ Retirement System (CalPE RS), which acts as a common investme nt and administrati ve agent for its participating member employers. Benefit provisions unde r the Plans are established by State statute and City resolution. CalPERS issues public ly available reports that include a full de scription of the pen sion plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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

The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan ar e applied as specified by the Public Employees’ Retirement Law.

The Plan provisions and benefits in effect at June 30, 2023, are summarized as follows:

Hire date Prior to January 1, 2013 Hire date Prior to January 1, 2013 Benefit formula 2.5% @ 55 Benefit formula 3% @ 55
Benefit vesting schedule 5 years service Benefit vesting schedule 5 years service Benefit payments monthly for life Benefit payments monthly for life Reti rement age 50 Reti rement age 50
Mont hly be ne fit s, as a % of e ligible
compensation 2.00% to 2.50%
Mont hly be ne fit s, as a % of e ligible
compensation 2.40% to 3.00%
Required employee contribution rates 7.680% Required employee contribution rates 9.850% Required employer contribution rates* 35.450% Required employer contribution rates 55.070% *As a percentage of projected payroll
Miscellaneous Safety
Employees Covered
At the measurement date June 30, 2022, the following employees were covered by the benefit terms of the plan:

Miscellaneous Safety
Inactive employees or
beneficiaries currently receiving
benefits 1,779 429
Inactive employees entitled to but
not yet receiving benefits 1,132 157
Active employees 1,399 355
Total 4,310 941

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 105 (20) Pension Plans (Continued)

CalPERS Miscellaneous and Safety Plans (Continued)

Contribution Description

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determ ined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the diffe rence between the actuarially determined rate and the contribution rate of employees. Employer contribution ra tes may change if plan contracts are amended. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer- Paid Member Contributions or situations where members are paying a portion of the employer contribution. The City made contributions to the Miscellaneous and Safety Plans during the fiscal year ended June 30, 2023 of $43,316 and $27,252, respectively.

Net Pension Liability

The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Methods and Assumptions Used to Determine Total Pension Liability

Actuari al Cost Method Entry Age Actuarial Cost Method Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Servi ce
Mortality Rate Table (1) Derived using CalPERS' Membership Data for all Funds Post Retirement Benefit
Increase
The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on
purchasin g power applie s, 2.30% thereafter
A ctuarial A ssumptions
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience St udy for the period from 2001 to 2019. Pre- retirement and Post- retirement mortality rates include using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be fo und on the CalPERS website.

Discount Rate

The discount rate used to measure th e total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

106 Annual Comprehensive Financial Report | June 30, 2023 (20) Pension Plans (Continued)

CalPERS Miscellaneous and Safety Plans (Continued)

Long-term Expected Rate of Return

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, Ca lPERS took into account both short-term and long-term market return expectation. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

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

Asset Class (1)
Assumed Asset
Allocation Real Return (1,2)
Global Equity - Cap-Weighted 30.00% 4.54%
Global Equity - Non-Cap-Weighted 12.00 3.84
Private Equity 13.00 7.28
Treasury 5.00 0.27
Mortgage-Backed Securities 5.00 0.50
Investment Grade Corporates 10.00 1.56
High Yeild 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage (5.00) (0.59)
(1) An expe cte d inflation of 2.30% use d for this peri od. (2) Figure s are base d on the 2021 A sse t L iability Manage m e nt Study.

Source: CalPERS Annual Comprehensive Financial Report, Fiscal Year Ended June 30, 2022 PERF B & PERF C – Long-Term Expected Real Rates of Return by Asset Class

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June
30, 2023 107
(20) Pension Plans (Continued)
CalPERS Miscellaneous and Safety Plans (Continued)
Changes in Net Pension Liability
Miscellaneous
AB C = B - A
Total Pension Liability
Plan Fiduciary Net
Position
Net Pension
Asset/(Liability)
Balance at June 30, 2021,
Measurement Date (MD) 1,244,126$ 1,066,101$ $ (178,025) Changes Recognized for the
Measurement Period 2021-22:

Service Cost 22,198 - (22,198)
Interest on the Total Pension Liability 85,888 - (85,888) Di fferences between Expected and
Actual Experience (12,307) - 12,307
Changes of Assumption 35,296 - (35,296)
Plan to Plan Resource Movement - - -
Contribution from Employers - 40,242 40,242
Contribution from Employees - 9,288 9,288 Net Investment Income - (80,440) (80,440)
Benefit Payments, including
Refunds of Employee Contribution (66,929) (66,929) - Administrative Expense - (664) (664)
Net Changes 64,146 (98,503) (162,649)
Balance at June 30, 2022, MD 1,308,272$ 967,598$ (340,674)$ Pension Expense 37,805$
Increase/(Decrease)
Safety
AB C = B - A
Total Pension Liability
Plan Fiduciary Net
Position
Net Pension
Asset/(Liability)
Balance at June 30, 2021,
Measurement Date (MD) 741,784$ 632,114$ (109,670)$ Changes Recognized for the
Measurement Period 2021-22:

Service Cost 14,423 - (14,423)
Interest on the Total Pension Liability 51,956 - (51,956) Differences between Expected and
Actual Experience (643) - 643
Changes of Assumption 22,619 - (22,619) Net Plan to Plan Resource Movement - - -
Contribution from Employers - 25,199 25,199
Contribution from Employees - 5,015 5,015
Net Investment Income - (47,866) (47,866)
Benefit Payments, including Refunds of
Employee Contribution (35,966) (35,966) -
Administrative Expense - (393) (393)
Net Changes 52,389 (54,011) (106,400)
Balance at June 30, 2022, MD 794,173$ 578,103$ (216,070)$ Pension Expense 29,561$
Increase/(Decrease)

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
108 Annual Comprehensive Financial Report | June 30, 2023 (20) Pension Plans (Continued)
CalPERS Miscellaneous an
d Safety Plans (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rates The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount
rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:

Discount Rate -1%
(5.90%)
Current Discount
Rate (6.90%)
Discount Rate +1%
(7.90%)
Plan Net Pension Liability 506,856$ 340,674$ 202,750$ Discount Rate -1%
(5.90%)
Current Discount
Rate (6.90%)
Discount Rate +1%
(7.90%)
Plan Net Pension Liability 329,222$ 216,070$ 123,709$ Miscellaneous
Safety
Subsequent Events (as
measurement period is from July 1, 2021 through June 30, 2022) On July 12,
2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

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

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June
30, 2023 109
(20) Pension Plans (Continued)
CalPERS Miscellaneous a
nd Safety Plans (Continued)
Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position ar e recognized
in pension expense systematically over time.

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

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

Net difference between projected
and actual earnings 5 year straight-line amortization
Al l other amounts Strai ght-l i ne amorti zati on over the expected average remai ni ng service l ifetime (EARSL) of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement peri od
The EARSL for the Miscellane ous Plan f o
r the measurement period ending June 30, 2022 is 3.4 years, which was obtained by dividing the total service years of 14,755 (the sum of remaining service lifetimes of the active employees) by 4,330 (the total number of participants: active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future serv ice is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

The EARSL for the Safety Plan for the measurement period ending June 30, 2022 is 4.8 years, which was obtained by dividing the total service years of 4,486 (the sum of remaining service lifetimes of the active employees) by 941 (the total number of participants: active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to zero. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
110 Annual Comprehensive Financial Report | June 30, 2023 (20) Pension Plans (Continued)
CalPERS Miscellaneous an
d Safety Plans (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of June 30, 2023,
the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Deferred Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Resources Resources Change s of A ssumption 24,916$ -$ 17,907$ (56)$ 42,823$ (56)$ Di fferences between Expected and
Actual Experience - (10,154) 1,725 (510) 1,725 (10,664) Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
48,800 - 29,163 - 77,963 -
Contributions Subsequent to the
Meas urement Date 43,316 - 27,252 - 70,568 -
Total 117,032$ (10,154)$ 76,047$ (566)$ 193,079$ (10,720)$ Miscellaneous Safety Total
The amounts above are net of o
utflows and inflows recogn ized in the fiscal year 2022-23 measurement period expense. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

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

Deferred
Outflows/(Inflows) of
Resources
2023 13,491$ 2023 10,485$
2024 13,437 2024 9,119
2025 5,971 2025 6,710
2026 30,663 2026 21,915
Thereafter - Thereafter -
Defined Contribution
Plan (PARS)
The City provides pension benefits for employees not covered by CalPERS or FPRS through the PARS. This is a defined contribution plan created in accordance with Internal Revenue Code Sections 401(a) and 501. CalPERS issues publicly available reports that include a full description of the pe nsion plan regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website, at www.calpers.ca.gov.

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

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

The City’s payroll for employees covered by PARS for the year ended June 30, 2023 was $4,854. The covered employees made the total required 7.5% contributions of $364.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June
30, 2023 111
(21) Other Postemployment Benefits (OPEB)
The City of Pasadena provides a direct subsidy to retire es of the City who are members of the California Public Employees’ Retirement System or the Pasadena Fire and Police Pension System. As such, the OPEB plan is not separately audited and does not issue its own report.

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

Two different levels of subsidy toward the purchase of medical insurance from CalPERS under the Public Employees’ Medical and Hospital Care Act (PEMHCA) are offered. These are currently at $151 or $149 per month depending on the bargaining unit or the unrepresented group the employee was a member.

At the June 30, 2023 actuarial valuation, the following current and former employees were covered by the benefit terms:

Inactive plan members or beneficiaries currently receiving benefits 721 Active plan members 1,582
2,303
Plan Description
Eligibility. The pla
n is an agent multiple-employer plan which provides benefits under PEMHCA to individuals who retire with the City and begin to collect a monthly benefit under one of the retirement plans sponsored by the City.

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

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

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

Pre-retirement Death:

Safety Employees
Industrial: Survivor receives medical benefits commenc
ing immediately.

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

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

Dependent Eligibility: Dependents are not eligible for benefits.

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

Benefits:

Medical Benefit: Eligible retirees are provided a subsidy for medical benefits through PEHMCA. For the calendar year 2023, this monthly amount is $151.00 for certain classes of employees and $128.35 for remaining employees.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
112 Annual Comprehensive Financial Report | June 30, 2023 (21) Other Postemployment Benefits (OPEB) (Continued)
Contributions
The City contributes the minimum amount allowed under Government Code Section 22825 of the PEMHCA enacted by CalPERS pursuant to State Law. The City’s required monthly contributions for calendar years 2023 and 2022 were $151.00 or $149. 00, respectively. The statutory contribution will be indexed by the medical CPI each year. The required contribution is based on pay-as-you-go financin g requirements. Retirees must contribute any premium amounts in excess of the City contribution. In fiscal year 2018, the City set aside $2,000 in a Section 115 trust account, which was recognized as a reduction to the OPEB liability. The City has not made any additional contribution since the initial funding and during fiscal year ended June 30, 2023. As of June 30, 2023, the fair value of the OPEB Section 115 trust account was $2,310.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated July 1, 2022, based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal – level percentage of Salary method Actuarial Assumptions:

Discount Rate 4.13% as of July 1, 2023 and 4.09% as of July 1, 2022 Inflation 2.80% per annum
Payroll Increases 2.80% per annum, plus salary merit increases Merit Increases Merit increases from th e most recent CalPERS pension plan valuation.The benefits are not payroll related but each individual’s projected cost is allocated over their lifetime as a level-percentage of pay.

Healthcare Trend Rate The current health care trend rate starts at an initial rate of

6.25%,decreasing to an ultimate rate of 4.50%.

Investment Rate of Return 5.0% per annum
Disability According to the disability rates under the 2022 CalPERS experience study.

Turnover Rate According to the termination rates under the 2022 experience study for the CalPERS pension plan
Retirement Age According to the retirement rates under the 2022 CalPERS experience study. According to the following retirement tables:

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

Therefore, mortality assumptions are set to reflect general population trends based upon Pub-2010 Mortality tables and the most recent generational projection scale MP-2022 released by the Society of Actuaries (SOA) for future mortality improvements.

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June
30, 2023 113
(21) Other Postemployment Benefits (OPEB) (Continued)
Net OPEB Liability (Continued)
Pre-retirement Turnover According to the rates under the 2022 experience study for the CalPERS pension plan
[Rates have been updated to the CalPERS 2017 experience study from the 2014 experience study for the pension plan]
Participation Rates 60% of eligible active employees are assumed to elect medical coverage at retirement. Future retirees are assumed to elect similar coverage as current retirees. Actual plan coverage is used for current retirees.

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

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

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

The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long- term expected rate of return by weighting the expected fu ture real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset allocation as of June 30, 2023 are summarized in the following table:

Assets Class Target Allocation
Long-term Expected
Gross Rate of Return
Equities 30.00% 7.70%
Fixed Income 65.00% 4.00%
Cash 5.00% 2.40%
Total 100.00% 5.00%
Long-term expected rate of return is 5.00%.

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
114 Annual Comprehensive Financial Report | June 30, 2023 (21) Other Postemployment Benefits (OPEB) (Continued)
Changes in the OPEB Liability
AB C = A - B
Total OPEB Liability
Plan Fiduciary Net
Position
Net OPEB
(Asset)/Liability
Balance at June 30, 2022 74,648$ 2,215$ 72,433$ Changes recognized for the
Measurement Period:

Service Cost 3,623 - 3,623
Interest 3,141 - 3,141
Difference between expected and
actual experience (397) - (397)
Changes of Assumptions (419) - (419)
Contribution - Employer - 2,997 (2,997)
Net Investment Income - 101 (101)
Benefit Payments, Net (2,997) (2,997) -
Administrative Expenses - (6) 6
Net Changes 2,951 95 2,856
Balance at June 30, 2023 77,599$ 2,310$ 75,289$ Increase (Decrease)
(Balance of page intentionally left blank)

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June
30, 2023 115
(21) Other Postemployment Benefits (OPEB) (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, calculated using the discount rate of 4.13%, as well as what the net OPEB would be if it were calculated using a d iscount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:
1% Decrease Current Discount Rate 1% Increase
(3.13%) (4.13%) (5.13%)
Net OPEB Liability 86,986$ 75,289$ 65,881 $ Sensitivity of th
e Net OPEB Liability to Changes in Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:
1% Decrease
Current Healthcare
Cost Trend Rates 1% Increase
(5.25% decreasing
to 3.50%)
(6.25% decreasing to

4.50%)
(7.25% decreasing to

5.50%)
Net OPEB Liability 63,596$ 75,289$ 90,334$
OPEB Expense
and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $6,175. As of fiscal year ended June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB form the following sources:

Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Change s of A ssumptions 699$ (2,241)$
Di fference between expected and actual experi ence 6,705 (21,638) Net difference between projected and actual earning on OPEB plan investments 184 - Total 7,588$ (23,879)$
The $7,587 reported as deferred outflows of resources and $23,879 reported as deferred inflows related to OPEB will be recognized as OPEB expense as follows:

Fiscal Year
Ended June 30
Deferred
Outflows/(Inflows) of
Resources
2024 (1,211) $
2025 (1,919)
2026 (1,879)
2027 (1,964)
2028 (1,966)
Thereafter (7,352)
Total (16,291)$

NOTES TO THE BASIC FINANCIAL STATEMENTS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
116 Annual Comprehensive Financial Report | June 30, 2023 (22) Commitments and Contingencies
Primary Government
“Take or Pay” Contracts
The City’s electric operation has
entered into various long term “Take or Pay” contracts to provide for current and future electric generating capacity and transmission of ener gy for City customers. The Ci ty is obligated to pay the amortized cost of indebtedness regardless of the ability of the contracting agency to provide electricity and/or transmission, as applicable. Th e original indebtedness will be amortized by adding the financing costs to pur chase energy over the life of the contract. The contracts expire at various times through fiscal year 2036. The total commitment under these contracts as of June 30, 2023 is $104,309.

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

Stranded Investments
In response to California Assembly Bill 1890 (“AB1890”), the City chose to open its market to competition on January 1, 2000. The City has long-term contracts with IPA and SCPPA, most of which obligate the City to purchase power and/or services at cost, which was projected to be higher than market in a deregulated environment. As a result, the City was faced with a “stranded investment” with a net present value estimated to be $40,341 in 2023. The City has implemented the approved Stranded Invest ment Utilization Plan by direct defe asance of the debt service of IPP outstanding bonds and mitigation of variable energy costs.

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

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

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

CITY OF PASADENA FINANCIAL SECTION NOTES TO TH E BASIC FINANCIAL STATEMENTS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 117 (23) Restatement of Beginning Net Position

A prior period adjustment of $791 was made to reduce the net position of the Refuse fund due to a reinstatement of deposits payable related to residential and commercial bins erroneously recognized as revenue in the prior fiscal year.

Government-wide
Statements
Business-type
Activities
Nonmajor
Enterprise Funds
Net position at beginning of year, as previously reported 879,222$ 18,936$ Restatement:

Res ource, recovery a nd recycl i ng
reinstatement of deposit balance (791) (791) Net pos i ti on a t begi nni ng of yea r, a s res ta ted 878,431$ 18,145$ Fund Statements
Enterprise Funds

(24) Subsequent Events

Subsequent events were evaluated through the date of the audit report.

Acquisition of Property in Partnership with Los Angeles County

On April 24, 2023, Council authorized City Manager to enter into an agreement on behalf of City of Pasadena with Kaiser Foundation Health Plan, Inc., to purchase a property located at 450 N. Lake Ave, Pasadena. On November 6, 2023, the City of Pasadena took formal ownership of the 2.5-acre site. The cost of this acquisition was $12,000. This project will be in partnership with Los Angeles County, wi th the County contributing $6,0 00 to the purchase price.

The property will be transformed into a community services site, offering affordable housing, mental health care services, and outpatient services.

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REQUIRED SUPPLEMENTARY INFORMATION
ANNUAL COMPREHENSIVE FINANCIAL REPORT | FISCAL YEAR ENDED JUNE 30, 2023

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
120 Annual Comprehensive Financial Report | June 30, 2023 (This page intentionally left blank)

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 121 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund
For the Fiscal Year Ended June 30, 2023
Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
Revenues:

Taxes:

Property 76,276$ 76,276$ 81 ,292$ 5,016$ Sales 70 ,645 7 5,681 75,733 52
Utilit y users' 27,200 2 7,200 32,790 5,590 Tra ns i ent occupanc y 17,037 1 8,637 18,675 38 Other 20,823 1 4,187 25,768 11,581
L
icenses and per mits 3,475 3,475 3,731 256 Inter gov ernmental 22,651 3 0,040 71,161 41,121 C
harges for s ervices 34,953 3
3,813 35,822 2,009
Fines and forfeitures 5,121 5,121 5,372 251 Inv estment earnin gs6 81 6 81 2,127 1,446 Net chan ge in fair v alue of inv estments - - (640) (640) L
ease revenues 995 9
95 1,349 354
Interest - leases (as lessor ) - - 2 2
Miscellaneous revenues 2,817 2,848 3,226 378 Contributions 33 3
3 33 -

Total revenues 282,707 288,987 356 ,441 67,454 Expenditures:

General government:

Attorne y 10,461 1 1,628 11,949 (321)
Cl
e rk 3,332 3,332 3,131 201
Council 3,136 3,136 2,763 373
Ma nager 6,122 6,422 5,895 527
Finance 13,883 1 3,883 13,733 150
Human Resources 4,817 4,817 4,728 89
Nonde partmental 15,574 1 6,503 16,170 333
Public safety:

Fire 58 ,046 6 0,073 61,231 (1,158)
P
olic e 9 4,898 9 5,335 94,891 444
Transportation:

Trans porta tion 23,098 2 4,329 24,290 39
P ublic Wor ks - - - -

Culture and leisure:

Pa rks, Recreation & Communit y 23,148 2 2,794 21,860 934 Nonde partmental 11,244 1 3,844 11,559 2,285 Community development:

Plannin g & Permittin g 9,701 9,518 8,683 835 Capital outlay 61 2
19 2,556 (2,337)
Debt Service:

Interest 10 1
0 3 7

Lease pay ments - - 644 (644)
Subscri ption payments - - 447 (447)
I
nterest - leases and subscriptions - - 33 ( 33)
277,531 285,843 284 ,566 1,277 Excess (deficiency) of revenues over (under)
expenditures 5,176 3
,144 71,875 68,731
O
ther financing sources (uses):

Tr ansfer s in 2 0,715 2 0,715 20,667 (48)
T
ra ns fers out (30,443) (35,203) (35,203) - Tr ansfer s t o c omponent unit - - (67) (67) L
eases issued - - 506 5
06 Subscri pt ions issued - - 617 6 17
Total other financing sources (uses) (9,728) (14,488) (13,480) 1,008 Net change in fund balances (4,552) (11,344) 58,395 69,739 F
und balances at be ginnin g of yea r 106,216 106,216 106 ,216 - Fund balances at end of year 101,664$ 94,872$ 164,611$ 69,739$ Budget

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

122 Annual Comprehensive Financial Report | June 30, 2023 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Housing Successor Fund
For the Fiscal Year Ended June 30, 2023

Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Cha rges for s ervi ces -$ -$ 7$ 7$ Inv estment earnin gs- - 92 92 M isc ellaneous r ev enues 1 1 8 118 289 171 Total revenues 118 118 388 270 Expenditures:

Current:

Communi ty develo pment 282 1,338 1 ,260 78 Total expenditures 282 1 ,338 1 ,260 78 Net change in fund balances (164) (1,220) (872) 348 Fund balance at beginning of year 1,893 1,893 1,893 - Fund balance at end of year 1,729$ 673$ 1,021$ 348$ Budget

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 123 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Project Management Fund
For the Fiscal Year Ended June 30, 2023

Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
Revenues:

Inter gov ernmental -$ 15,356$ 10 ,504$ (4,852)$ Cha rges for s ervi ces - 100 34 (66) Lease revenues - (138) 423 561 Miscellaneous revenues - - 56 56 Contributions - 481 677 196 Total revenues - 15,799 11 ,694 (4,105) Expenditures:

Current:

General gov ernment - - 225 (225) Trans portation 6,441 6 ,441 5 ,716 725 Capital out la y 1,151 50 ,653 36 ,321 14 ,332 Debt service:

Leas e payments - - 42 (42) Subscri ption payments - - 79 (79) Total expenditures 7,592 57 ,094 42 ,383 14 ,711 Excess (deficiency) of revenues
over (under) expenditures (7,592) (41,295) (30,689) 10,606 Other financing sources (uses):

Transfers in - 29,645 30 ,083 438 Transfers out - 30 (437) (467) L eases issued - - 11 11 Subscri pt ions issued - - 98 98 Total other financing sources - 29 ,675 29 ,755 80 Net change in fund balances (7,592) (11,620) (934) 10,686 Fund balance at beginning of year 3,387 3,387 3,387 - Fund balance (deficit) at end of year (4,205)$ (8,233)$ 2,453$ 10,686$ Budget

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
124 Annual Comprehensive Financial Report | June 30, 2023 (This pa
ge intentionally left blank)

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 125 City of Pasadena
Notes to the Required Supplementary Information
Year Ended June 30, 2023

Budgets and Budgetary Data

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

An appropriated annual budget is legally adopted for the General and Special Revenue Governmental Funds.

Annual appropriated budgets are not adopted for Debt Service Funds because bond indentures are used as the method for adequate budgetary control. Some Capital Projects Funds have annual appropriated budgets. Control over some projects is maintained by means of an annual budget; others through a project- length capital improvement budget. This project-length budget authorizes total expenditures over the duration of a construction project, rather than year by year.

The City maintains budgetary controls to ensure co mpliance 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 th e year must be approved by the City Council. All unencumbered appropriations lapse at the end of the fiscal year. In order to be an encumbered appropriation there must be either an approved purchase order or contract in force as of June 30.

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

126 Annual Comprehensive Financial Report | June 30, 2023 Schedule of Changes in the Net Pension Liability and Related Ratios CalPERS Pension Plans – Miscellaneous
Last Ten Fiscal Years1

Fiscal year ended June 30, 2023 June 30, 2022 June 30, 2021 Measurement period ended June 30, 2022 June 30, 2021 June 30, 2020 Total Pe nsion L iabilit y:

Service cost 22,198$ 19,876$ 19,566$ Inte re st on total pe nsion liabilit y 85,888 84,480 81,859 Changes of benefits - - - Changes of assumptions 35,296 - - Di fference between expected and actual experi ence (12,307) (2,425) (3,982) Benefit payments, including refunds of
employee contributions (66,929) (63,657) (61,336) Ne t Change in Total Pe nsion L iability 64,146 38,274 36,107 Total Pe nsion L iabilit y - Be ginning of Ye ar 1,244,126 1,205,852 1,169,745 Total Pe nsion L iabilit y - E nd of Ye ar (a) 1,308,272$ 1,244,126$ 1,205,852$ Plan Fiduciary Net Position:

Contributions - employer 40,242$ 38,235$ 35,786$ Contributions - employee 9,288 9,265 8,895 Net investment income (80,440) 199,471 42,242 Benefit payments, including refunds of
employee contributions (66,929) (63,657) (61,336) Net plan to plan resource movement - - - Administrative expense (664) (883) (1,211) Other mi scel l aneous i ncome/(expense) - - - Net Change in Plan Fiduciary Net Position (98,503) 182,431 24,376 Plan Fiduciary Net Position - Beginning of Year 1,066,101 883,670 859,294 Plan Fiduciary Net Position - End of Year (b) 967,598$ 1,066,101$ 883,670$ Net Pension Liability - Ending (a)-(b) 340,674$ 178,025$ 322,182$ Plan fiduciary net position as a percentage of the
total pe nsion liabilit y 73. 96% 85.69% 73.28%
Covered payroll 119,630$ 119,505$ 116,645$ Net pension liability as percentage of
covered payroll 284.77% 148.97% 276.21%

NOTES TO SCHEDULE:

Benefit Changes:

Changes in A ssumptions:

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

For fiscal years ended 2016 and 2017:

The re we re no significant change s in assum ptions.

For fiscal years ended 2017 and 2018:

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

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

The re we re no significant change s in assum ptions.

For fiscal year ended 2023:

The discount rate was reduced from 7.15% to 6.90%.
1 GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015. Additional years w ill be adde d as they be com e available in the future .

There were no changes in benefits.

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 127

June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 19,270$ 19,070$ 18,793$ 16,452$ 16,519$ 17,349$ 79,379 76,249 74,168 72,632 70,708 68,656 - - - - - - - (7,443) 59,447 - (16,682) - 5,492 (3,023) (11,333) (13,975) (14,488) - (58,915) (55,364) (51,700) (49,269) (46,871) (44,239) 45,226 29,489 89,375 25,840 9,186 41,766 1,124,519 1,095,030 1,005,655 979,815 970,629 928,863 1,169,745$ 1,124,519$ 1,095,030$ 1,005,655$ 979,815$ 970,629$ 31,375$ 27,112$ 24,681$ 22,252$ 19,683$ 18,058$ 8,841 8,824 8,904 8,659 8,503 10,977 53,458 66,083 80,076 3,807 16,554 111,123 (58,915) (55,364) (51,700) (49,269) (46,871) (44,239) - (2) - - 1 - (589) (1,219) (1,065) (449) (829) 2 (2,314) - - - - 34,172 43,120 60,896 (15,000) (2,959) 95,919 825,122 782,002 721,106 736,106 739,065 643,146 859,294$ 825,122$ 782,002$ 721,106$ 736,106$ 739,065$ 310,451$ 299,397$ 313,028$ 284,549$ 243,709$ 231,564$

73.46% 73.38% 71.41% 71.71% 75.13% 76.14%
112,848$ 111,573$ 107,546$ 105,292$ 102,406$ 103,617$ 275.11% 268.34% 291.06% 270.25% 237.98% 223.48%

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
128 Annual Comprehensive Financial Report | June 30, 2023 Schedule of Contributions
CalPERS Pension Plans – Miscellaneous
Last Ten Fiscal Years1
Fiscal year ended 2023 2022 2021
Actuarially determined contribution 2 40,242$ 38,235 $ 35,786 $ Contributions i n relati on to the actuarially
determined contribution (43,316) (38,235) (35,786) Contribution deficiency (excess) (3,074)$ -$ -$ Covered payroll 126,652$ 119,630$ 119,505$ Contributions as a percentage
of covered payroll 34.20% 31.96% 29.95%
Notes to Schedule:

Valuation date 6/30/2020 6/30/2019 6/30/2018
Methods and Assumptions Used to Determine Contribution Rates:

Actuarial cost method Entry age Entry age Entry age
Asset valuation method Fair value Fair value Fair value Inflation 2.50% 2.50% 2.625%
Amorti zati on method3
Salary incre ase s4
Investment rate of return5 7.00% 7.00% 7.25%
Retirement age6
Mortality 7
NOTES TO SCHEDULE:
1 2
3 L e ve l pe rce ntage of payroll, close d.
4 Depending on age, service, and type of employment.
5 Net of pension plan investment expense, including inflation 6 The probabilitie s of re tire m e nt are base d on the most re ce nt CalPERS Expe rie nce Study adopte d by the CalPERS Board. 7 GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015. A dditional ye ars will be adde d as the y be com e available in the future .

Employers are assumed to make contributions equal to the actuarily determined contributions. However, some employers may choose to make additional contributions towards their unfunded liab ility. E mploye r contributions for such plans e xce e d the actuarially de te rmine d cont ributions.

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

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 129

2020 2019 2018 2017 2016 2015
31,375$ 27,112$ 24,681$ 22,252$ 19,683$ 18,058$ (31,375) (27,112) (24,681) (22,252) (19,683) (18,058) -$ -$ -$ -$ -$ -$ 116,645$ 112,848$ 111,573$ 107,546$ 105,292$ 102,406$

26.90% 24.03% 22.12% 20.69% 18.69% 17.63%
6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Entry age Entry age Entry age Entry age Entry age Entry age Fair value Fair value Fair value Fair value 15 Ye ar 15 Ye ar Smoothed Smoothed
Market Method Market Method

2.625% 2.75% 2.75% 2.75% 2.75% 2.75%

7.25% 7.38% 7.50% 7.50% 7.50% 7.50%

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

130 Annual Comprehensive Financial Report | June 30, 2023 Schedule of Changes in the Net Pension Liability and Related Ratios CalPERS Pension Plans – Safety
Last Ten Fiscal Years1

Fiscal year ended June 30, 2023 June 30, 2022 June 30, 2021 Measurement period June 30, 2022 June 30, 2021 June 30, 2020 Total Pe nsion L iability:

Service cost 14,423$ 13,227$ 13,264$ Interest on total pension liabil ity 51,956 50,130 47,906 Changes of benefit terms - - - Changes of assumptions 22,619 - - Di fference between expected and actual experi ence (643) 777 1,038 Benefit payments, i ncluding refunds of
employee contributions (35,966) (32,147) (29,518) N e t Change in T otal Pe nsion L iability 52,389 31,986 32,690 Total Pe nsion L iability - Be ginning of Y e ar 741,784 709,798 677,108 Total Pe nsion L iability - End of Y e ar (a) 794,173$ 741,784$ 709,798$ Plan Fiduciary Net Position:

Contributions - employer 25,199$ 23,384$ 21,823$ Contributions - employee 5,015 4,734 4,617 Net investment income (47,866) 118,090 24,676 Benefit payments, i ncluding refunds of
employee contributions (35,966) (32,147) (29,518) Net plan to plan resource movement - - - Administrative expense (393) (518) (702) Other miscellaneous income/(expense) - - - Net Change in Plan Fiduciary Net Position (54,011) 113,543 20,896 Plan Fiduciary Net Position - Beginning of Year 632,114 518,571 497,675 Plan Fiduciary Net Position - End of Year (b) 578,103$ 632,114$ 518,571$ Ne t Pe nsion L iability - Ending (a)-(b) 216,070$ 109,670$ 191,227$ Plan fiduciary net position as a percentage of the
total pe nsion liability 72.79% 85.22% 73.06%
Covered payroll 48,883$ 47,997$ 47,457$ Net pension l iabili ty as percentage of
covered payroll 442.01% 228.49% 402.95%

NOTES TO SCHEDULE:

Benefit Changes:

Changes in A ssumptions:

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

For fiscal years ended 2016 and 2017:

There were no significant changes in assumptions.

For fiscal years ended 2017 and 2018:

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

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

There were no significant changes in assumptions.

For fiscal year ended 2023:

The discount rate was reduced from 7.15% to 6.90%.
1 There were no changes in benefits.

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

GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015. A dditional ye ars will be added as they be come available in the future.

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 131

June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 12,764$ 12,757 $ 12,324 $ 10,509 $ 10,702 $ 11,182 $ 45,654 43,215 41,004 39,394 37,307 35,798 - - - - - - - (995) 36,547 - (9,888) - 4,034 2,172 (7,057) (634) (8,455) - (26,877) (24,941) (22,654) (20,871) (19,143) (16,924) 35,575 32,208 60,164 28,398 10,523 30,056 641,533 609,325 549,161 520,763 510,240 480,184 677,108$ 641,533$ 609,325$ 549,161$ 520,763$ 510,240$ 19,187$ 16,542$ 15,279$ 13,026$ 12,027$ 10,533$ 4,383 4,197 4,056 3,804 3,764 4,226 30,716 37,156 44,323 2,093 8,834 59,052 (26,877) (24,941) (22,654) (20,871) (19,143) (16,924) - (1) - - - - (336) (685) (58 9) (245) (452) - 1 (1,301) - - 684 - 27,074 30,967 40,415 (2,193) 5,714 56,887 470,601 439,634 399,219 401,410 395,696 338,809 497,675$ 470,601$ 439,634$ 399,219$ 401,410$ 395,696$ 179,433$ 170,932$ 169,691$ 149,942$ 119,353$ 114,544$

73.50% 73.36% 72.15% 72.70% 77.08% 77.55%
46,444$ 44,887$ 41,528$ 41,142$ 41,013$ 34,243$ 386.34% 380.81% 408.62% 364.45% 291.01% 334.50%

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
132 Annual Comprehensive Financial Report | June 30, 2023 Schedule of Contributions
CalPERS Pension Plans – Safety
Last Ten Fiscal Years1
Fiscal year ended 2023 2022 2021
Actuarially determined contribution 2 25,199$ 23,384$ 21,823$ Cont ribut ions in re lation t o the actuarially
determined contribution (27,252) (23,384) (21,823)
Contribution deficiency (excess) (2,053)$ -$ -$
Covered payroll 51,234$ 48,883$ 47,997$
Contributions as a percentage
of covered payroll 53.19% 47.84% 45.47%
Notes to Schedule:

Valuation date 6/30/2020 6/30/2019 6/30/2018
Actuarial cost method Entry age Entry age Entry age
A sse t valuat ion m e thod Fair value Fair value Fair value Inflation 2.50% 2.50% 2.625%
Amorti zati on method3
Salary incre ase s4
Investment rate of return5 7.00% 7.00% 7.25%
Retirement age6
Mort alit y7
Methods and Assumptions Used to
Determine Contribution Rates:

NOTES TO SCHEDULE:
1 2
3 L e ve l pe rce ntage of payroll, close d.
4 Depending on age, service, and type of employment.
5 Net of pension plan investment expense, including inflation 6 7
GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015. Additional years will be added as they become available in the future.

Employers are assumed to make contri butions equal to the actuarily determi ned contri butions. However, some empl oyers may choose to make addi tional contributi ons towards their unfunded l iabili ty. Empl oyer contri butions for such plans exceed the actuarially de te rm ine d contributions.

The probabilities of retirement are based on the most recent CalPERS Experience Study adopted by the CalPERS Board.

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

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 133

2020 2019 2018 2017 2016 2015
19,187$ 16,542$ 15,279$ 13,026$ 12,027$ 10,533$ (19,187) (16,542) (15,279) (13,026) (12,027) (10,533) -$ -$ -$ -$ -$ -$ 47,457$ 46,444$ 44,887$ 41,528$ 41,142$ 41,013$

40.43% 35.62% 34.04% 31.37% 29.23% 25.68%
6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Entry age Entry age Entry age Entry age Entry age Entry age Fair value Fair value Fair value 15 Year 15 Year 15 Year Smoothed Smoothed Smoothed
Market Method Market Method Market Method

2.625% 2.75% 2.75% 2.75% 2.75% 2.75%

7.25% 7.38% 7.50% 7.50% 7.50% 7.50%

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

134 Annual Comprehensive Financial Report | June 30, 2023 Fire and Police Retirement System
Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years1

Fiscal year ended June 30, 2023 June 30, 2022 June 30, 2021 Measurement period June 30, 2023 June 30, 2022 June 30, 2021 Total Pe nsion L iability:

Interest on total pension liability 6,316$ 6,947$ 7,335$ Di fferences between expected and actual experience 482 164 (1,798) Changes of assumptions 1,815 4,400 - Changes of benefits -
Benefit payments, including refunds of
empl oyee contri buti ons (11,954) (12,072) (12,506) N e t Change in Total Pe nsion L iability (3,341) (561) (6,969) Total Pe nsion L iability - Be ginning of Ye ar 126,291 126,852 133,821 Total Pe nsion L iability - End of Ye ar (a) 122,950$ 126,291$ 126,852$ Plan Fiduciary Net Position:

Contributions - employer -$ -$ -$ Contributions - employee - - - N e t inve stme nt income 5,013 (10,656) 22,355 Benefit payments, including refunds of
empl oyee contri buti ons (11,954) (12,072) (12,506) Administrative expense (344) (343) (327) Net Change in Plan Fiduciary Net Position (7,285) (23,071) 9,522 Plan Fiduciary Net Position - Beginning of Year 111,662 134,733 125,211 Plan Fiduciary Net Position - End of Year (b) 104,377$ 111,662$ 134,733$ N e t Pe nsion L iability - Ending (a)-(b) 18,573$ 14,629$ 2 (7,881)$ Plan fiduciary net position as a percentage of the
total pe nsion liability 84.89% 88.42% 106.21%

NOTES TO SCHEDULE:
1 2
Changes of Assumptions: Fiscal years ended 2019 through 2022 had no significant changes of assumptions. June 30, 2018 assumption changes of $2,189,000 for change in the discount rate, from 6.50% in 2017 to 5.75% in 2018, and inflation rate, from

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

As adjusted after the fiscal year 2022 GASB 68 report was performed.

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

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 135

June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 7,600$ 7,781 $ 8,832 $ 9,272 $ 9,644 $ 9,162 $ 438 1,862 1,261 (3,081) (2,098) (3,075) - - 2,189 - - 3,141 - - - - - - (12,773) (12,824) (12,815) (13,118) (13,448) (13,645) (4,735) (3,181) (533) (6,927) (5,902) (4,417) 138,556 141,737 142,270 149,197 155,099 159,516 133,821$ 138,556$ 141,737$ 142,270$ 149,197$ 155,099$ 23,137$ -$ -$ -$ -$ -$ - - - - - - 3,394 5,923 6,656 12,512 50 5,683 (12,773) (12,824) (12,815) (13,118) (13,448) (13,645) (321) (257) (272) (300) (302) (273) 13,437 (7,158) (6,431) (906) (13,700) (8,235) 111,774 118,932 12 5,363 126,269 139,969 148,204 125,211$ 111,774$ 118,932$ 125,363$ 126,269$ 139,969$ 8,610$ 26,782$ 22,805$ 16,907$ 22,928$ 15,130$

93.57% 80.67% 83.91% 88.12% 84.63% 90.24%

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

136 Annual Comprehensive Financial Report | June 30, 2023 Fire and Police Retirement System
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years1

Contractually Actual Contribution as
Fiscal Year Required Fiscal Year Deficiency Covered a Percentage of Ending Contribution* Contribution (Excess) Payroll Payroll 2023 -$ -$ -$ n/a n/a 2022 - - - n/a n/a 2021 - - - n/a n/a 2020 3,478 3,478 - n/a n/a 2019 - - - n/a n/a 2018 - - - n/a n/a 2017 - - - n/a n/a 2016 - - - n/a n/a 2015 - - - n/a n/a 2014 1,164 1,164 - n/a n/a

NOTES TO SCHEDULE:
1 * 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.

GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal ye ar e nde d June 30, 2015. A dditional ye ars will be adde d as the y be com e available in the future.

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 137 Fire and Police Retirement System
Schedule of Plan Investment Returns
As of June 30, for the Last Ten Fiscal Years1

Fiscal year ended 2023 2022 2021 2020 2019 2018 2017 2016 2015

5.00% -8.60% 19.00% 2.80% 5.50% 5.60% 10.70% 0.40% 3.70% Annual money-weighted rate of return,
net of investment expense

NOTE TO SCHEDULE:

Source is the June 30, 2023 GASB 67 plan actuarial information prepared by System Actuary, Foster & Foster, Inc. 1 GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015. Additional years will be added as they become available in the future.

REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
138 Annual Comprehensive Financial Report | June 30, 2023 Schedule of Changes in the Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years1
Fiscal year ended 2023 2022 2021 2020 2019 2018
Total OPEB Liability
Service cost 3,623 $ 4,917 $ 4,254 $ 3,567 $ 3,217 $ 3,178$ Inte re st on the tot al OPEB liabilit y 3,141 2,181 2,365 2,561 2,596 2,448 Differences between expected and actual experience (397) 874 (553) (7,576) - - Changes in assumptions (419) (26,576) 2 6,723 11,111 3,664 (988) Changes in benefit terms - - - - - -
Benefit payments (2,997) (2,833) (2,678) (2,815) (2,612) (2,391) N e t change in T otal OPE B L iabilit y 2,951 (21,437) 10,111 6,848 6,865 2,247 Total OPEB liability - beginning 74,649 96,086 85,975 79,127 72,262 70,015 T ot al OPE B liability - e nding (a) 77,600$ 74,649 $ 96,086 $ 85,975 $ 79,127 $ 72,262 $ Plan Fiduciary Net Position
Contribution - employer 2,997$ 2,833 $ 2,678 $ 2,815 $ 2,612 $ 4,391$ Net investment i ncome 101 (301) 312 101 133 2
Benefit payments (2,997) (2,833) (2,678) (2,815) (2,612) (2,391) Administrative expense (6) (5) (6) (11) (9) -
Net change in plan fiduciary net position 95 (306) 306 90 124 2,002 Plan fiduciary net position - beginning 2,216 2,522 2,216 2,126 2,002 - Plan fiduciary net position - ending (b) 2,311$ 2,216 $ 2,522 $ 2,216 $ 2,126 $ 2,002$ N e t OPE B L iabilit y/(A sse t s) - ending (a) - (b) 75,289$ 72,433 $ 93,564 $ 83,759 $ 77,001 $ 70,260 $ Plan fiduciary net position as a percentage of the
total OPEB liability 2.98% 2.97% 2.62% 2.58% 2.69% 2.77% Covered - employee payroll 177,866$ 160,024$ 167,502 $ 164,102 $ 134,734 $ 130,809 $ N e t OPE B L iabilit y as pe rce nt age of cove re d- employee payroll 42.3% 45.3% 55.9% 51.0% 57.2% 53.7%
NOTES TO SCHEDULE:
1 GASB Statement No. 75, whi ch requi res ten years of hi story for thi s schedul e, was i mpl emented during fiscal year ended June 30, 2018. Additional years will be added as they become available in the future.
2 Adjusted FY 2022 'Changes of assumptions'.

CITY OF PASADENA FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 139 Schedule of OPEB Plan Contributions
As of June 30, for the Last Ten Fiscal Years1

2023 2022 2021 2020 2019 2018
2,997$ 2,833 $ 2,678 $ 2,815 $ 2,612 $ 4,391 $ 2 (2,997) (2,833) (2,678) (2,815) (2,612) (4,391) -$ - $ - $ - $ - $ - $ 177,866$ 160,024 $ 167,502$ 164,102$ 134,734 $ 130,809 $

1.68% 1.77% 1.60% 1.72% 1.94% 3.36%
Covered empl oyee payrol l
Contributions as a percentage of
covered employee payroll
Contractually determined contribution
Contribution in relation to the contractually
determined contributions
Contribution deficiency/(excess)

NOTES TO SCHEDULE:
2 Updated Fiscal Year 2018 amounts
1 GASB Statement No. 75, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2018. Additional years will be added as they become available in the future.

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SUPPLEMENTARY INFORMATION
ANNUAL COMPREHENSIVE FINANCIAL REPORT | FISCAL YEAR ENDED JUNE 30, 2023

FINANCIAL SECTION CITY OF PASADENA
(AMOUNTS EXPRESSED IN THOUSANDS)
142 Annual Comprehensive Financial Report | June 30, 2023 Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Special Capital Debt Service
Revenue Pro jects Fund Permanent
Funds Funds 2015 Series A Funds Total
Assets:

Pool ed ca s h a nd i nves tments 147,008$ 10,599$ -$ 2,033$ 159,640$ Ac counts r ec eiv able 1 6 ,975 101 - 9 17,085
L ease r ec eiv able 7 1 6 - - - 716
Prepaids and other assets 149 - - - 149
Not es r ec eiv able 6 1,269 - - - 61,269
Allowance for doubtful accounts (61,269) - - - (61,269) Restric
ted assets:

Cash and investments 2,645 - - - 2,645
Cash with fiscal a gent 73 - 6,754 - 6,827
Total assets 167,566 10,700 6,754 2,042 187,062 Liabilities, deferred inflow of resources and
fund balances:

Liabilities:

Accounts payable and accrued liabilities 6,369 - - - 6,369 De posits 1,356 - - - 1,356
Due to other funds 8,826 - - - 8,826
Unea rned revenue 2,798 - - - 2,798
Total liabilities 19,349 - - - 19,349
Deferred inflows of resources:

Unav ailable r ev enues 4,292 - - - 4,292
Lea se rela ted 693 - - - 693
Total deferred inflow of resources 4,985 - - - 4,985 Fund balances/(deficit):

Nons pendable 149 - - 1,433 1,582
Restricted 57,731 1,851 6,754 551 66,887
Commi tted 92,257 8,849 - 58 101,164
Unassi gned (6,905) - - - (6,905)
Total f
und balances 143,232 10,700 6,754 2,042 162,728 Total liabilities, deferred inflow of resources and
fund balances 167,566$ 10,700$ 6,754$ 2,042$ 187,062$ .

CITY OF PASADENA FINANCIAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 143 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2023

Special Capital Debt Service
Revenue Pro jects Fund Permanent
Funds Funds 2015 Series A Funds Total
Revenues:

Taxes 11,040$ - $ - $ - $ 11 ,040$ Licenses and per mits 13,337 - - - 13 ,337 Inter governmental 77,053 - - - 77 ,053 Cha rges for serv ices 11,837 59 - - 11 ,896 Inv estment earnin gs2 ,142 257 - 30 2 ,429 Net chan ge in fair v alue of inv estments (672) (183) (131) (12) (998) Lease revenues 3,419 - - - 3 ,419 Interest - leases (as lessor ) 4 - - - 4 M iscellaneous r ev enues 3,033 15 - - 3 ,048 Contributions 817 - - - 817 Total revenues 122,010 148 (131) 18 122,045 Expenditures:

Current:

General government - 6 4 - 10 P ublic safety 3,217 - - - 3 ,217 Trans portation 17,324 141 - - 17 ,465 Utilit y 135 - - - 135 Sanitation 5 ,886 - - - 5 ,886 Health 18 ,944 - - - 18 ,944 Culture and leisure 14 ,851 - - - 14 ,851 Communi ty develo pment 43,151 18 - - 43 ,169 Capital outla y 1,419 - - - 1 ,419 Debt service:

Pri ncipa l reti rement 300 - 2,195 - 2 ,495 Interest 124 - 2,101 - 2 ,225 Leas e payments 548 - - - 548 Subscri ption payments 199 - - - 199 Inter est - leases and subsc r i ptions 21 - - - 21 Total expenditures 106,119 165 4 ,300 - 110 ,584 Excess (deficiency) of revenues over
(under) expenditures 15,891 (17) (4,431) 18 11,461 Other financing sources (uses):

Transfers in 15 ,287 - 4 ,101 - 19 ,388 Transfers out (16,099) (9,171) - - (25,270) Leases issued 321 - - - 321 Subscri pt ions issued 1 7 2 - - - 172 Total other financing sources (uses) (319) (9,171) 4,101 - (5,389) Net change in fund balances 15,572 (9,188) (330) 18 6,072 Fund balances at beginning of year 127,660 19,888 7,084 2,024 156,656 Fund balances at end of year 143,232$ 10,700$ 6,754$ 2,042$ 162,728$

.
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SPECIAL REVENUE FUNDS
ANNUAL COMPREHENSIVE FINANCIAL REPORT | FISCAL YEAR ENDED JUNE 30, 2023 (This page intentionally left blank)

CITY OF PASADENA SUPPLEMENTARY INFORMATION NONMAJOR GOVERNMENTAL FUNDS Annual Comprehensive Financial Report | June 30, 2023 147

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

Special revenue funds are used to account for specific revenue s that are legally restricted to expenditure for particular purposes. In a governmental fund other than the general fund, expenditures incurred for a specific purpose might exceed the amounts in the fund that are restricted, committed, and assigned to that purpose and a negative residual balance for that purpose may result. If that occurs, amount assigned to other purposes in that fund should be reduced to eliminate the deficit.

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

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

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

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

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

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

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

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

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

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

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

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

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

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
148 Annual Comprehensive Financial Report | June 30, 2023 Combining Balance Sheet
Nonmajor Governmental Funds
Special Revenue Funds
June 30, 2023
Sewer
Construction
Public Building and Under ground
Safety Health Services Maintenance Utilities
Assets:

Cash and investments 4 ,262$ - $ 21,683$ 15 ,616$ 36 ,897$ Acc ounts r eceiv able 8 1 5 4,649 89 657 1,141 L ease r eceiv able - 716 - - -
Prepaids and other assets - 4 - - - Notes r eceiv able - - - - -
Allowanc e for uncollec tible long-ter m
receivables - - - - - Restricted assets:

Cash and investments - - - - - Cash with fiscal a gent - 73 - - -
Total assets 5,077 5,442 21,772 16,273 38,038 Liabilities, deferred inflow of resources
and fund balances:

Liabilities:

Acc ounts pay able and ac cr ued liabilities 2 8 1,035 811 167 67 Deposits - 2 728 - -
Due to other funds - 8,826 - - -
Unearned revenue - 817 133 - - Total liabilities 28 10,680 1 ,672 167 67 Deferred inflows of resources:

Unavailable revenues 197 970 4 - - Lea s e rel a ted - 693 - - -
Total deferred inflows of resources 197 1,663 4 - - Fund balances:

Nons pendable - 4 - - -
Restricted 4,852 - - - -
Committed - - 20 ,096 16,106 37,971 Unassi gned - (6,905) - - -
Tot
al fund balances (deficit) 4,852 (6,901) 20,096 16,106 37,971 Total liabilities, deferred inflow of resources
and fund balances 5,077$ 5,442 $ 21,772 $ 16,273 $ 38,038 $

CITY OF PASADENA SUPPLEMENTARY INFORMATION NONMAJOR GOVERNMENTAL FUNDS Annual Comprehensive Financial Report | June 30, 2023 149

Housing and
Air Quality Community Donated
Transportation Librar y Parking Improvement Develo pment Funds Total 38,406$ 14 ,037$ 4 ,226$ 260 $ 7 ,533$ 4 ,088$ 147 ,008$ 3,300 100 141 46 6 ,027 10 16 ,975 - - - - - - 716 - - - - 145 - 149 - - - - 61 ,269 - 61 ,269 - - - - (61,269) - (61,269) - - - - 2 ,645 - 2 ,645 - - - - - - 73 41,706 14 ,137 4 ,367 306 16 ,350 4 ,098 167 ,566 1,505 368 24 3 2,204 157 6,369 - 1 - - 6 619 1,356 - - - - - - 8,826 - 26 - - 1,822 - 2,798 1,505 395 24 3 4 ,032 776 19 ,349 62 - 1 - 3 ,058 - 4 ,292 - - - - - - 693 62 - 1 - 3,058 - 4,985 - - - - 145 - 149 40,139 - - 303 9 ,115 3 ,322 57 ,731 - 13 ,742 4 ,342 - - - 92 ,257 - - - - - - (6,905) 40,139 13 ,742 4 ,342 303 9 ,260 3 ,322 143 ,232 41,706$ 14,137 $ 4,367 $ 306 $ 16,350 $ 4,098$ 167,566$

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
150 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Special Revenue Funds
For the Fiscal Year Ended June 30, 2023
Sewer
Construction
Public Buildin g and Under ground
Safety Health Services Maintenance Utilities
Revenues:

Taxes -$ 1,166$ -$ -$ 6,831$
Licenses and permits - 1,804 11,533 - -
Inter gov ernmental 3,839 14,513 25 3,100 -
Cha rges for s ervi ces - 541 2,423 7,721 -
Inv estment earnin gs5 8 - 311 177 587
Net change in fair v alue of inv estments (1 4 ) - (91) (67) (190) Lease revenues - 265 - - -
Interest - leases (as lessor ) - 4 - - -
M isc ellaneous r ev enues - 99 74 - -
Contri buti ons - - - - -
Total revenues 3,883 18,392 14,275 10,931 7,228 Expenditures:

Current:

P ublic safety 3,217 - - - -
Trans porta tion - - - - -
Utilit y - - - - 135
Sanita tion - - - 5,886 -
Health - 18,944 - - -
C ult ur e and leisur e - - - - -
Communit y develo pment - - 9,983 - -
Capital outla y 537 193 372 - -
Debt service:

Pri ncipa l reti rement - - - - -
Interest - - - - -
Lea s e payments - 26 - - -
Subscri ption payments - 48 3 2 -
Int er est - leases and subsc r iptions - 2 - - - Total expenditures 3,754 19,213 10,358 5,888 135 Excess (deficiency) of revenues over (under)
expenditures 129 (821) 3,917 5,043 7,093
Other financing sources (uses):

Transfers in - 973 - - -
Transfers out (164) (25) (339) (3,185) (5,403)
L e
ases issued - 115 - - -
Subscri pt ions issued - 73 - - -
Total other financing sources (uses) (164) 1,136 (339) (3,185) (5,403) Net
change in fund balances (35) 31 5 3,578 1,858 1,690 Fund balances (deficit ) at be ginnin g of year 4,887 (7,216) 16,518 14,248 36,281 Fund balances (deficit) at end of year 4,852$ (6,901)$ 20,096$ 16,106$ 37,971$

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 151

Housing and
Air Quality Community Donated
Transportation Librar y Parking Improvement Develo pment Funds Total -$ 3,034$ 9 $ - $ - $ - $ 11 ,040$ - - - - - - 13 ,337 21,880 83 - 230 33 ,383 - 77 ,053 1,035 4 112 - 1 - 11 ,837 561 195 62 3 128 60 2 ,142 (153) (69) (24) - (46) (18) (672) - 18 3,126 - 10 - 3 ,419 - - - - - - 4 1,028 - 2 - 1 ,830 - 3 ,033 - 185 - - - 632 817 24,351 3 ,450 3 ,287 233 35 ,306 674 122 ,010 - - - - - - 3 ,217 14,263 - 3 ,019 42 - - 17 ,324 - - - - - - 135 - - - - - - 5 ,886 - - - - - - 18 ,944 - 14 ,478 - - - 373 14 ,851 - - - - 33 ,168 - 43 ,151 169 148 - - - - 1 ,419 - - - - 300 - 300 - - - - 124 - 124 49 149 9 - 315 - 548 27 50 - - 69 - 199 1 3 - - 15 - 21 14,509 14 ,828 3 ,028 42 33 ,991 373 106 ,119 9,842 (11,378) 259 191 1,315 301 15,891 379 12,213 27 - 1 ,695 - 15 ,287 (3,917) (279) (7) - (2,780) - (16,099) 58 148 - - - - 321 99 - - - - - 172 (3,381) 12,082 20 - (1,085) - (319) 6,461 704 279 191 230 301 15 ,572 33,678 13 ,038 4 ,063 112 9 ,030 3 ,021 127 ,660 40,139$ 13,742 $ 4,342 $ 303 $ 9,260 $ 3,322 $ 143,232 $

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
152 Annual Comprehensive Financial Report | June 30, 2023 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Public Safety Fund
For the Fiscal Year Ended June 30, 2023
Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
Revenues:

Inter governmental 2,640$ 3,523$ 3,839$ 316$ Inv estment earnin gs2 9 29 58 29 Net chan ge in fair v alue of inv estment s - - (14) (14) Total r
evenues 2,669 3,552 3,883 331
Expenditures:

Current:

Publ i c s a fety 3,159 3,224 3,217 7
Capital outla y 157 1,085 537 548
Total expenditures 3,316 4,309 3,754 555
Excess (deficiency) of revenues
over (under) expenditures (647) (757) 129 886
Other financing sources (uses):

Transfers out - (300) (164) 136
Total o
ther financing sources (uses) - (300) (164) 136
Net change in fund balances (647) (1,057) (35) 1,022
Fund balance at be ginnin g of year 4,887 4,887 4,887 - Fund balance at end of year 4,240$ 3,830$ 4,852$ 1,022$ Budget

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 153 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Health Fund
For the Fiscal Year Ended June 30, 2023

Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
Revenues:

Taxes 880$ 880$ 1,166$ 286 $ Licenses and permits 1,912 1 ,912 1 ,803 (109) Inter governmental 15,886 18 ,411 14 ,514 (3,897) Cha rges for serv ices 460 460 541 81 Leas e revenues 232 232 265 33 Interest - leases (as lessor ) - - 4 4 M isc ellaneous r ev enues - 154 99 (55) Total revenues 19,370 22 ,049 18 ,392 (3,657) Expenditures:

Current:

Health 19 ,636 22 ,656 18 ,944 3 ,712 Capit al out lay 4 5 193 (188) Debt service:

Leas e payments - - 26 (26) Subscri ption payments - - 48 (48) Int er est - leases and subsc r iptions - - 2 (2) Total expenditures 19,640 22 ,661 19 ,213 3 ,448 Excess (deficiency) of revenues
over (under) expenditures (270) (612) (821) (209) Other financing sources (uses):

Transfers in 525 824 973 149 Transfers out - (25) (25) - Leases issued - - 115 115 Subscri pt ions issued - - 73 73 Total other financing sources 525 799 1 ,136 337 Net change in fund balances 255 187 315 128 Fund balance (deficit) at
beginning of year (7,216) (7,216) (7,216) - Fund balance (deficit) at end of year (6,961)$ (7,029)$ (6,901)$ 128$ Budget

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
154 Annual Comprehensive Financial Report | June 30, 2023 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Building Services Fund
For the Fiscal Year Ended June 30, 2023
Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
Revenues:

Licenses and permits 6,624$ 6 ,624$ 11 ,533$ 4 ,909$ Inter gov ernmental 919 919 25 (894) Cha rges for s ervi ces 1,710 1,710 2,423 713 Inv estment earnin gs 166 166 311 145
Net chan ge in fair v alue of inv estments - - (91) (91) M isc ell
aneous r ev enues 5 4 54 74 20
Total revenues 9,473 9,473 14,275 4,802 Expenditures:

Current:

Communit y develo pment 12,038 11,666 9,983 1,683 Capital outla y - 372 372 -
Debt service:

Subscri ption payments - - 3 (3)
Total e
xpenditures 12,038 12,038 10,358 1,680 Excess (deficiency) of revenues
over (under) expenditures (2,565) (2,565) 3,917 6,482 Other financing sources (uses):

Transfers out - - (339) (339) Total ot
her financing sources (uses) - - (339) (339) Net change in fund balances (2,565) (2,565) 3,578 6,143 Fund balance at beginning of year 16,518 16,518 16,518 - Fund balance at end of year 13,953$ 13,953$ 20,096$ 6,143$ Budget

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 155 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Sewer Construction and Maintenance Fund
For the Fiscal Year Ended June 30, 2023

Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
Revenues:

Inter governmental -$ -$ 3,100$ 3 ,100$ Cha rges for s ervi ces 7,474 7 ,474 7 ,721 247 Inv estment earnin gs 128 128 177 49 Net chan ge in fair v alue of inv estments - - (67) (67) Total revenues 7,602 7 ,602 10 ,931 3 ,329 Expenditures:

Current:

Sanitation 5 ,708 6 ,338 5 ,886 452 Debt service:

Subscri pti on payments - - 2 (2) Total expenditures 5,708 6 ,338 5 ,888 450 Excess (deficiency) of revenues
over (under) expenditures 1,894 1,264 5,043 3,779 Other financing sources (uses):

Transfers out - (6,500) (3,185) 3,315 Total other financing sources (uses) - (6,500) (3,185) 3,315 Net change in fund balances 1,894 (5,236) 1,858 7 ,094 Fund balance at be ginnin g of yea r 14,248 14 ,248 14 ,248 - Fund balance at end of year 16,142$ 9,012 $ 16,106 $ 7,094 $ Budget

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
156 Annual Comprehensive Financial Report | June 30, 2023 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Underground Utilities Fund
For the Fiscal Year Ended June 30, 2023
Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
Revenues:

Taxes 5,800$ 5,800$ 6,831$ 1,031$
Inv estment earnin gs 454 454 587 133
Net chan ge in fair v alue of inv estments - - (190) (190) Total re
venues 6,254 6,254 7,228 974
Expenditures:

Current:

Utilit y 135 135 135 -
Total expenditures 135 135 135 -
Excess (deficiency) of revenues
over (under) expenditures 6,119 6,119 7,093 974 Other financing sources (uses):

Transfers out (4,218) (4,338) (5,403) (1,065) Total ot
her financing sources (uses) (4,218) (4,338) (5,403) (1,065) Net change in fund balances 1,901 1,781 1,690 (91) Fund balanc
e at be ginnin g of year 36,281 36,281 36,281 - Fund balance at end of year 38,182$ 38,062$ 37,971$ (91)$ Budget

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 157 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Transportation Fund
For the Fiscal Year Ended June 30, 2023

Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
Revenues:

Inter gov ernmental 19,846$ 19 ,846$ 21 ,880$ 2 ,034$ Cha rges for s ervi ces 1,042 1 ,042 1 ,035 (7) Inv estment earnin gs 283 283 561 278 Net chan ge in fair v alue of inv estments - - (153) (153) M isc ellaneous r ev enues 1,023 1 ,023 1 ,028 5 Total revenues 22,194 22 ,194 24 ,351 2 ,157 Expenditures:

Current:

Trans portation 14,983 15 ,808 14 ,263 1 ,545 Capital outla y - - 169 (169) Debt service:

Leas e payments - - 49 (49) Subscri ption payments - - 27 (27) Interest - leases and subscri ptions - - 1 (1) Total expenditures 14,983 15 ,808 14 ,509 1 ,299 Excess (deficiency) of revenues
over (under) expenditures 7,211 6,386 9,842 3,456 Other financing sources (uses):

Transfers in 379 379 379 - Transfers out (97) (7,865) (3,917) 3,948 L eases issued - - 58 58 Subsc r iptions issued - - 99 99 Total other financing sources (uses) 282 (7,486) (3,381) 4,105 Net change in fund balances 7,493 (1,100) 6,461 7 ,561 Fund balance at be ginnin g of year 33,678 33 ,678 33 ,678 - Fund balance at end of year 41,171$ 32,578 $ 40,139 $ 7,561 $ Budget

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
158 Annual Comprehensive Financial Report | June 30, 2023 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Library Services Fund
For the Fiscal Year Ended June 30, 2023
Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
Revenues:

Taxes 3,053$ 3,053$ 3,034$ (19)$
Inter gov ernmental - 93 83 (10)
Cha rges for s ervi ces 10 10 4 (6)
Inv estm
ent earnin gs9 7 97 195 98
Net chan ge in fair v alue of inv estments - - (69) (69) Lease rev en
ues - - 18 18
Miscellaneous revenues 4 4 - (4)
Contribut
ions 60 128 185 57
Total revenues 3,224 3,385 3,450 65
Expenditures:

Current:

C ultur e and leisur e 1 5 ,771 15,910 14,478 1,432 Capital outla y - - 148 (148)
Debt ser
vice:

Lease pay ments - - 149 (149)
Subscription payments - - 50 (50)
Inter est - leases (as lessee) - - 3 (3)
Total expenditures 15,771 15,910 14,828 1,082 Excess (deficiency) of revenues
over (under) expenditures (12,547) (12,525) (11,378) 1,147 Other financing sources (uses):

Transfers in 12,213 12,213 12,213 -
Transfers out - - (279) (279)
Leases is
sued - - 148 148
Total other financing sources (uses) 12,213 12,213 12,082 (131) Net change in fund balances (334) (312) 704 1,016
Fund balance at be ginnin g of year 13,038 13,038 13,038 - Fund balance at end of year 12,704$ 12,726$ 13,742$ 1,016$ Budget

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 159 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Parking Fund
For the Fiscal Year Ended June 30, 2023

Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
Revenues:

Taxes 10$ 10$ 9$ (1)$ Cha rges for s ervi ces 60 60 112 52 Inv estment earnin gs2 2 22 62 40 Net chan ge in fair v alue of inv estments - - (24) (24) Leas e revenues 2,911 2 ,911 3 ,126 215 M isc ellaneous r ev enues - - 2 2 Total revenues 3,003 3 ,003 3 ,287 284 Expenditures:

Current:

Trans portation 2,904 3 ,150 3 ,019 131 Debt service:

Leas e payments - - 9 (9) Total expenditures 2,904 3 ,150 3 ,028 122 Excess (deficiency) of revenues
over (under) expenditures 99 (147) 259 406 Other financing sources (uses):

Transfers in - - 27 27 Transfers out (7) (37) (7) 30 Total other financing sources (uses) (7) (37) 20 57 Net change in fund balances 92 (184) 279 463 Fund balance at be ginnin g of year 4,063 4 ,063 4 ,063 - Fund balance at end of year 4,155$ 3,879 $ 4,342 $ 463 $ Budget

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
160 Annual Comprehensive Financial Report | June 30, 2023 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Air Quality Improvement Fund
For the Fiscal Year Ended June 30, 2023
Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
Revenues:

Inter gov ernmental 170$ 170$ 230$ 60$
Inv estment earnin gs (2) (2) 3 5
Tot
al revenues 168 168 233 65
Expenditures:

Current:

Trans porta tion 172 172 42 130
Total expenditures 172 172 42 130
Net change in fund balances (4) (4) 191 195
Fund
balance at be ginnin g of year 112 112 112 -
Fund balance at end of year 108$ 108$ 303$ 195$ Budget

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 161 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Housing and Community Development Fund
For the Fiscal Year Ended June 30, 2023
Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
Revenues:

Inter gov er nmental 27,875$ 27,875$ 33,383$ 5,508$ Cha rges for s ervi ces 1 1 1 -
Inv estment earnin gs9 6 96 128 32
Net chan ge in fair v alue of inv est ment s - - (46) (46) Leas
e rev enues 91 91 10 (81)
M isc e
llaneous r ev enues 3,496 4,823 1,830 (2,993)
Total r
evenues 31,559 32,886 35,306 2,420
Expenditures:

Current:

Communi ty develo pment 38,269 42,238 33,168 9,070 Debt service:

Pri ncipa l reti rement 300 300 300 -
Interes t 140 140 124 16
Lease pay ments - - 315 (315)
Subscri pti on payments - - 69 (69)
Inte
r est - leases and subscr iptions - - 15 (15)
Total expenditures 38,709 42,678 33,991 8,687
Excess (deficiency) of revenues
over (under) expenditures (7,150) (9,792) 1,315 11,107 Other financing sources (uses):

Transfers in 1,545 1,695 1,695 -
Transfers out - - (2,780) (2,780)
Tota
l other financing sources (uses) 1,545 1,695 (1,085) (2,780) Net ch
ange in fund balances (5,605) (8,097) 230 8,327
Fund balances at be ginnin g of year 9,030 9,030 9,030 - Fund balance at end of year 3,425$ 933$ 9,260$ 8,327$ Budget

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
162 Annual Comprehensive Financial Report | June 30, 2023 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Donated Funds
For the Fiscal Year Ended June 30, 2023
Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
Revenues:

Inv estment earnin gs3 3$ 33$ 60$ 27$ Net chan ge in fair v alue of inv estments - - (18) (18) Contr
i buti ons 405 405 632 227
Total revenues 438 438 674 236
Expenditures:

Current:

Culture and leisure 370 370 373 (3)
Total
expenditures 370 370 373 (3)
Net ch
ange in fund balances 68 68 301 233 Fund balance at be ginnin g of year 3,021 3,021 3,021 - Fund balance at end of year 3,089$ 3,089$ 3,322$ 233$ Budget

CAPITAL PROJECT
FUNDS

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2023

SPECIAL REVENUE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
164 Annual Comprehensive Financial Report | June 30, 2023 (This page intentionally left blank)

CITY OF PASADENA FINANCIAL SECTION SPECIAL REVENUE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30 , 2023 165

NONMAJOR GOVERNMENTAL FUNDS

CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition or construction of major capital facilities by the City, other than those financed by proprietary funds.

Charter Capital Projects Fund – to account for certain resources identified by the City Council for the acquisition, construction, replacement or repair of municipal improvements where disbursements other than specific municipal improvement projects can be authorized only by a vote of the people.

New Development Impact Fund – to account for fees received from developers of commercial and indust rial facilities to be used to fund capital projects, which are made necessary in whole or in part by new development.

Residential Development Impact Fund – to ac count for fees received from developers of residential facilities to be used to develop park or recreational facilities.
10% Green Fee Capital Projects Fund – to account for capital improvements related to the development of the Arroyo Seco.

Funding comes from 10% of the gross receipts generated from green fees at the Brookside Golf Course, which are submitted to the capital project fund.

Capital Public Art Fund – to account for fees collected to be used for public art projects.

Traffic Reduction and Transportation Improvement Fee Fund – to account for fees assessed on new fee for new industrial, office, retail, and residential development, to ensure that the transportation improvements identified in the Mobility Element necessary to address the impact of new development on the Ci ty’s transportation system are equitably shared by all new development.

CAPITAL PROJECT FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
166 Annual Comprehensive Financial Report | June 30, 2023 Combining Balance Sheet
Nonmajor Governmental Funds
Capital Project Funds
June 30, 2023
10%
Charter New Residential Green Fee
Capital Develo pment Develo pment Ca pital
Projects Im pact Im pact Pro jects
Assets:

C ash and inv estments 1 ,849$ 260$ 5,384$ 72$ Accounts receivable 2 2 81 1
Total assets 1,851 262 5,465 73
Fund balances:

Restricted 1,851 - - -
Committed - 262 5,465 73
Total fund balances 1,851 262 5,465 73
Total liabilities and fund balances 1,851$ 262$ 5,465$ 73$

CITY OF PASADENA FINANCIAL SECTION CAPITAL PROJECT FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 167

Traffic
Capital Reduction
Public Trans portation
Art Im provement Total
1,028$ 2 ,006$ 10 ,599$
4 11 101
1,032 2,017 10,700
- - 1 ,851
1,032 2 ,017 8 ,849
1,032 2 ,017 10 ,700
1,032$ 2 ,017$ 10 ,700$

CAPITAL PROJECT FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
168 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Capital Project Funds
For the Fiscal Year Ended June 30, 2023
10%
Charter New Residential Green Fee
Capital Develo pment Develo pment Ca pital
Projects Im pact Impact Pro jects
Revenues:

Cha rges for s ervi ces -$ -$ -$ -$
Inv estment earnin gs1 7 4 166 2
Net chan ge in fair v alue of inv estment s (38) (2) (106) (1) M isc ellan
eous r ev enues - - - -
Total revenues (21) 2 60 1
Expenditures:

Current:

General government 6 - - -
Trans portation - - 141 -
Communit y develo pment - - - -
Total expenditures 6 - 141 -
Excess (deficiency) of revenues over (under)
expenditures (27) 2 (81) 1
Other financing sources (uses):

Transfers out - - (7,255) (9) Total ot
her financing sources (uses) - - (7,255) (9) Net change in fund balances (27) 2 (7,336) (8) Fund bala
nces at beginning of year 1,878 260 12,801 81 Fund balances at end of year 1,851$ 262$ 5,465$ 73$

CITY OF PASADENA FINANCIAL SECTION CAPITAL PROJECT FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 169

Traffic
Capital Reduction
Public Trans portation
Art Im provement Total
-$ 59 $ 59$
16 52 257
(6) (30) (183) 15 - 15
25 81 148
- - 6
- - 141 18 - 18
18 - 165
7 81 (17)
- (1,907) (9,171) - (1,907) (9,171) 7 (1,826) (9,188) 1,025 3,843 19,888
1,032$ 2,017 $ 10,700 $

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PERMANENT
FUNDS

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

FISCAL YEAR ENDED JUNE 30, 2023
(This page intentionally left blank)

CITY OF PASADENA FINANCIAL SECTION CAPITAL PROJECT FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 173

NONMAJOR GOVERNMENTAL FUNDS

PERMANENT FUNDS
Permanent fund
s are used to account for resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the City’s programs.

Vroman Art Bequest Fund – for purchase of books on art and works of art for the Pasadena Public Library.

Singer Trust Fund – for maintenance of Singer Park.

Noble Award Fund – for purchase of medals to award persons rendering notable service in promoting the beauty or general welfare of Pasadena.

Pasadena Center Capital Improvement Trust Fund – for capital improvements.

Cox Trust Fund – for purchase of literary classics.

Jankos Trust Fund – for purchase of books and materials for the purpose of self-improvement, career development, and agriculture.

Hudson Family Trust Fund – for the purchase of any type of library material for the Lamanda Park Branch of the Pasadena Public Library.

M. A. Berger Trust Fund – for support and maintenance of the Pasadena Public Library’s business and economic collections.

PERMANENT FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
174 Annual Comprehensive Financial Report | June 30, 2023 Combining Balance Sheet
Nonmajor Governmental Funds
Permanent Funds
June 30, 2023
Pasadena
Center Capital
Vroman Art Sin ger Noble Im provement
Bequest Trust Award Trust
Assets:

Cash and investments 6 $ 47$ 6$ 456$
Accounts recei va bl e - - - 2
Total assets 6 47 6 458
Fund balances:

Nons pendable 5 23 1 400
Re stricted 1 24 5 -
Commi tte d - - - 58
Total fund balances 6$ 47$ 6$ 458$

CITY OF PASADENA FINANCIAL SECTION PERMANENT FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 175

Hudson M. A.

Cox Jankos Famil y Berger
Trust Trust Trust Trust Total
5$ 28 $ 110 $ 1,375 $ 2,033 $ - - 1 6 9 5 28 111 1,381 2,042 4 25 100 875 1 ,433 1 3 11 506 551 - - - - 58 5$ 28 $ 111 $ 1,381 $ 2,042 $

PERMANENT FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
176 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Permanent Funds
For the Fiscal Year Ended June 30, 2023
Pasadena
Center Capital
Vroman Art Sin ger Noble Im provement
Bequest Trust Award Trust
Revenues:

Inv estment earnin gs- $ 1$ -$ 7$ Net chan ge in fair v alue of inv estments - - - (3) Total rev
enues - 1 - 4
Net change in fund balances - 1 - 4
Fund balances at beginning of year 6 46 6 454 Fund balances at end of year 6$ 47$ 6$ 458$

CITY OF PASADENA FINANCIAL SECTION NON-MAJOR ENTERPRISE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 177

Hudson M. A.

Cox Jankos Famil y Berger
Trust Trust Trust Trust Total
-$ -$ 2$ 20$ 30$ - - (1) (8) (12) - - 1 12 18 - - 1 12 18 5 28 110 1,369 2,024 5$ 28 $ 111 $ 1,381 $ 2,042 $

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NONMAJOR

ENTERPRISE FUNDS

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

FISCAL YEAR ENDED JUNE 30, 2023
(This page intentionally left blank)

CITY OF PASADENA FINANCIAL SECTION NON-MAJOR ENTERPRISE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 181

NONMAJOR ENTERPRISE FUNDS
Enterprise funds are used to account for City operations that are financed and operated in a manner similar to private business enterprises, where the costs of providing these services to the general public on a continuing basis are financed or recovered primarily through user charges.

Refuse Collection Fund – to account for the operations of the City's refuse collection program, a self-supporting activity, which renders services on a user charge basis to residents and businesses.

Telecommunications Fund – to account for revenues received for the use of the fiber optic system excess capacity by private sector firms and used to repay the loan, which funded its construction, as well as fees for setting up wireless facilities on City- owned property

NONMAJOR ENTERRPRISE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
182 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2023
Refuse Tele-
Collection communications Total
Assets:

Current assets:

Ca s h a nd i nve s tme nts 19,769$ 2 ,362$ 22 ,131$ Accounts recei vabl e , net 2,759 97 2,856
Due from com ponent units 2 9 11
Lease r ec eiv able - 55 55
Total current assets 22,530 2,523 25,053
Noncurrent assets:

Capital as s ets 14,017 2,420 16,437
Less: accumulated de preci a ti on/amortization (8,011) (1,129) (9,140) Capita l
as s ets , net 6,006 1,291 7,297
Total noncurrent assets 6,006 1,291 7,297
Total assets 28,536 3,814 32,350
Deferred outflow of resources:

Pension related 3,151 - 3,151
OPEB related 220 - 220
Total deferred outflow of resources 3,371 - 3,371
Liabilities:

Current liabilities:

Accounts payable and ac c r ued liabilities 1,734 - 1,734 Depos its 6,049 - 6,049
Unea rned revenues - 1,067 1,067
Lease liability 3 - 3
Subscri ption liabilit y 17 - 17 Total current liabilities 7,803 1,067 8,870
Noncurrent liabilities:

Net pension liabilit y 8,509 - 8,509
Net OP EB liabilit y 2,183 - 2,183
Subsc r iption liability 5 6 - 56
Total noncurrent liabilities 10,748 - 10,748
Total liabilities 18,551 1,067 19,618
Deferred inflow of resources:

Lea s e related - 76 76
Pension related 273 - 273
OPEB related 692 - 692
Total deferred inflow of resources 965 76 1,041
Net position:

Net inv estment in c a pital assets 5,930 1,291 7,221 Unres tri cted 6,461 1,380 7,841
Total net position 12,391$ 2,671$ 15,062$

CITY OF PASADENA FINANCIAL SECTION NONMAJOR ENTERPRISE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 183 Combining Statement of Revenues, Expenditures and Changes in Net Position Nonmajor Enterprise Funds
For the Fiscal Year Ended June 30, 2023

Refuse Tele-
Collection communications Total
Operating revenues:

Charges for services:

Refuse collection 12 ,309$ - $ 12 ,309$ Telec ommunic ation - 415 415 Total operating revenues 12,309 415 12 ,724 Operating expenses:

Refus e col l ecti on 20 ,144 - 20 ,144 Tel ecommuni ca ti ons - 10 10 De preci a ti on/amortization 935 178 1,113 Total operating expenses 21,079 188 21 ,267 Operating income (loss) (8,770) 227 (8,543) Nonoperating revenues (expenses):

Taxes 6 ,713 - 6 ,713 Inter governmental 107 - 107 Noncom plianc e for feit ur es (430) - (430) Inv estment earnin gs3 31 37 368 Net chan ge in fair v alue of inv estments (185) (17) (202) Gain (loss ) on dis posal of assets 19 - 19 Lease rev enues - 41 41 Interest ex pense (2) - (2) Total nonoperating revenues (expenses) 6,553 61 6,614 Income (loss) before transfers (2,217) 288 (1,929) Transfers:

Tr ansfer s in - 123 123 Transfers out (773) (504) (1,277) Changes in net position (2,990) (93) (3,083) Net posit ion at beginning of y ear , as r est at ed 1 5 ,3 8 1 2,764 18,145 Net position at end of year 12,391$ 2,671$ 15,062$

NONMAJOR ENTERRPRISE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
184 Annual Comprehensive Financial Report | June 30, 2023 Statement of Cash Flows
Nonmajor Enterprise Funds
For the Fiscal Year Ended June 30, 2023

Refuse Tele-
Collection communications Total
Cash Flows from Operating Activities:

Ca s h recei ved from cus tomers 13,602$ 585$ 14,187$ C ash pay ment s t o supplier s for goods and ser v ic es (1 1 ,8 5 4 ) (142) (11,996) Ca s h pa yments to empl oyees for s ervices (7,515) - (7,515) Other pa yments (1,223) - (1,223) Net cash provided by (used for) operating activities (6,990) 443 (6,547) Cash Flows from Noncapital Financing Activities:

C ash t r ansfer s in - 123 123 C ash t r ansfer s out (7 7 3 ) (504) (1,277) Taxes received 6,713 - 6,713 Intergov ernmental rev enues 107 - 107 Net cash provided by (used for) noncapital financing activities 6,047 (381) 5,666 Cash Flows from Capital and Related Financing Activities:

Acquisition and construction of capital assets (3,217) (71) (3,288) Proceeds from sale of capital assets 19 - 19 Proceeds from lease activities - 53 53 Net cash used for capital and related financing activities (3,198) (18) (3,216) Cash Flows from Investing Activities:

Inv estment earnings 331 37 368 Net change in fair v alue of inv estments (18 5 ) (17) (202) Net cash provided by (used for) investing activities 146 20 166 Net increase (decrease) in cash and cash equivalents (3,995) 64 (3,931) Cash and cash equivalents at beginning of year 23,764 2,298 26,062 Cash and cash equivalents at end of year 19,769 2,362 22,131 Reconciliation of cash and cash equivalents to amounts
reported on the Statement of Net Position:

C ash and inv estments 1 9 , 7 6 9 2,362 22,131 Cash and cash equivalents at end of year 19,769$ 2,362$ 2 2,131$

CITY OF PASADENA FINANCIAL SECTION NONMAJOR ENTERPRISE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 185 Statement of Cash Flows
Nonmajor Enterprise Funds (Continued)
For the Fiscal Year Ended June 30, 2023

Refuse Tele-
Collection communications Total
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:

Opera ti ng i ncome (l os s ) (8,770)$ 227$ (8,543)$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization 935 178 1,113 Other revenue (expens e) (1,223) - (1,223) (Increase) decrease in accounts receivable (467) 170 (297) (Increase) decrease in prepaids and other assets 24 - 24 Increase (decrease) in accounts payable and accrued liabilities 746 (2) 744 Increase (decrease) in unearned rev enue - (130) (130) Increase (decrease) in deposits pay able 1,761 - 1,761 Increase (decrease) in deferred inflows - non-lease related (2,510) - (2,510) (Increase) decrease in deferred outflows (1,961) - (1,961) Inc r ease (dec r ease) in net OP EB liability 12 7 - 127 Inc r ease (dec r ease) in net pension liability 4 ,34 8 - 4,348 Total adjustments 1,780 216 1,996 Net cash provided by (used for) operating activities (6,990)$ 443$ (6,547)$ Non-Cash Investing, Capital and Financing Activities
C hanges in fair v alue of inv estments (18 5 ) (17) (202) (This page intentionally left blank)

INTERNAL SERVICE FUNDS
ANNUAL COMPREHENSIVE FINANCIAL REPORT | FISCAL YEAR ENDED JUNE 30, 2023

(This page intentionally left blank)

CITY OF PASADENA FINANCIAL SECTION NONMAJOR ENTERPRISE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 189

INTERNAL SERVICE FUNDS
Internal service funds are use
d to account for the financing of goods and services provided by one City department to another or to other governmental units on a cost-reimbursement basis.

Computing and Communication Services Fund – to account for all operations of the Computing and Communications Division of the City Manager's Department, which includes such services as data processing, radio communications, telephone, and voice services.

Building Maintenance Fund – to account for housekeeping and structural maintenance of City buildings.

Fleet Replacement Fund – to account for the procurement of City vehicles.

Fleet Repair and Maintenance Fund – to account for the repair and maintenance of City vehicles.

Benefits Fund – to account for employee compensated absences, retirement, and health benefits.

Workers’ Compensation Fund – to acco unt for investigation services, temporary disability and medical payments, excess insurance, permanent disability awards, administrative servic es, and litigation costs. Premiums based on employee worker classifications are indirectly charged to each department for claims proportionate to current industry rates applicable to job functions.

General Liability Fund – to a ccount for payment of self-insured general liability and auto mobile liability claims, excess insurance, claims adjusting services, lit igation costs, and administrative services. Contributions are made from each department and are based on past claims experience and appropriate risk factors. 311 Call Center Fund – to account for the operation of the City’s central call center.

INTERNAL SERVICE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
190 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Net Position
Internal Service Funds
June 30, 2023
Computing and
Communication Buildin g Fleet
Assets: Services Maintenance Re placement
Current assets:

C ash and inv est ment s 3 ,762$ 8,761$ 16,380$ Accounts receiva ble 15 71 25
Due from com ponent uni ts - - -
Inv entories - - -
Prepaids and ot her asset s 9 7 8 - -
L ease r ec eiv able - 307 -
Total current assets 4,755 9,139 16,405
Noncurrent assets:

L ease r ec eiv able - 321 -
Capi tal as s ets 11,058 87 28,912
Less: accumulated de preci a ti on/amortization (6,918) (34) (18,021) Ca pi tal
a s s ets , net 4,140 53 10,891
Total noncurrent assets 4,140 374 10,891
Total assets 8,895 9,513 27,296
Deferred outflow of resources:

Pension related 6,197 2,452 90
OPEB rela ted 252 140 3
Total deferred outflow of resources 6,449 2,592 93 Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 798 1,658 6 Due to other funds - - -
Due to com ponent units - - -
Insurance claims payable - - -
Compensat ed absenc es - - -
Lease liabilit y - 13 -
Subscri pt ion liabilit y 1,048 9 -
Total current liabilities 1,846 1,680 6
Noncurrent liabilities:

Insurance claims payable - - -
Compensat ed absenc es - - -
Net pension liabilit y 15,659 7,222 3,061
Net OP EB liabilit y 2,499 1,392 32
Subscri pt ion liabilit y 888 31 -
Total noncurrent liabilities 19,046 8,645 3,093
Total liabilities 20,892 10,325 3,099
Deferred inflows of resources:

Leas e rela ted - 594 -
Pension related 538 213 8
OPEB rela ted 793 441 10
Total deferred inflows of resources 1,331 1,248 18 Net position:

Net investment in ca pit al assets 2,204 - 10,891 Unrestricted (9,083) 532 13,381
Total net position (deficit) (6,879)$ 532$ 24,272$

CITY OF PASADENA FINANCIAL SECTION INTERNAL SERVICE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 191

Fleet
Repair and Workers' General 311
Maintenance Benefits Com pensation Liabilit y Call Center Total 3,904$ - $ 12 ,166$ - $ 338 $ 45 ,311$ 26 55 - 46 1 239 4 - - 8 - 12 410 - - - - 410 - 20 37 - - 1 ,035 - - - - - 307 4,344 75 12 ,203 54 339 47 ,314 - - - - - 321 576 - 26 3,950 62 44,671 (93) - (2) (79) (12) (25,159) 483 - 24 3,871 50 19,512 483 - 24 3 ,871 50 19 ,833 4,827 75 12 ,227 3 ,925 389 67 ,147 1,376 28 ,406 4 ,287 226 330 43 ,364 76 19 22 13 16 541 1,452 28 ,425 4 ,309 239 346 43 ,905 856 3 ,564 98 31 26 7 ,037 - 31 ,896 - 5 ,113 - 37 ,009 - - - 9 - 9 - - 17 ,881 18 ,157 - 36 ,038 - 12 ,033 - - - 12 ,033 - - - - - 13 50 - - 75 12 1 ,194 906 47 ,493 17 ,979 23 ,385 38 93 ,333 - - 23,251 5,574 - 28,825 - 820 - - - 820 1,013 77 ,770 10 ,470 551 627 116 ,373 759 190 221 127 158 5 ,378 171 - - 82 37 1 ,209 1,943 78 ,780 33 ,942 6 ,334 822 152 ,605 2,849 126 ,273 51 ,921 29 ,719 860 245 ,938 - - - - - 594 119 1 ,591 76 20 29 2 ,594 241 60 70 40 50 1,705 360 1 ,651 146 60 79 4 ,893 262 - 24 3 ,714 1 17 ,096 2,808 (99,424) (35,555) (29,329) (205) (156,875) 3,070$ (99,424)$ (35,531)$ (25,615)$ (204)$ (139,779)$

INTERNAL SERVICE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
192 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Revenues, Expenditures and Changes in Net Position Internal Service Funds
For the Fiscal Year Ended June 30, 2023
Computing and
Communication Buildin g Fleet
Services Maintenance Re placement
Operating revenues:

Charges for services:

Computin g and communication services 20,073$ -$ -$ Buildin g maintenance - 14,530 -
Fleet re placement and maintenance - - 3,221
Emplo yee benefits - - -
Insurance - - -
Other revenues - - -
Total operating revenues 20,073 14,530 3,221
Operating expenses:

Computin g and communication services 17,372 - - Buildin g maintenance - 13,972 -
Fleet re placement and maintenance - - 214
Emplo yee benefits - - -
Insurance - - -
311 Ca l l Center - - -
De preci a ti on/amortization 1,663 10 1,488
Total operating expenses 19,035 13,982 1,702
Operating income (loss) 1,038 548 1,519
Nonoperating revenues (expenses):

Inv estment earnin gs (loss ) 42 130 229
Net chan ge in fair v alue of inv estments 8 (37) (87) Lease r
evenues - 297 -
Gain (loss ) on dis posal of assets - - 11
Interest - leases (as lessor ) - 3 -
Interest ex pense (55) (1) -
Total
nonoperating revenues (expenses) (5) 392 153
Income (loss) before transfers 1,033 940 1,672
Transfers from (to) other funds:

Transfers in 930 165 1,554
Transfers out (408) (1,307) -
Net inc
ome (loss) 1,555 (202) 3,226
Net position (deficit) at beginning of year (8,434) 734 21,046 Net position (deficit) at end of year (6,879)$ 532$ 24,272$

CITY OF PASADENA FINANCIAL SECTION INTERNAL SERVICE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 193 Fleet
Repair and Workers' General 311
Maintenance Benefits Com pensation Liabilit y Call Center Total -$ -$ -$ -$ -$ 20,073$
- - - - - 14,530
12,507 - - - - 15,728 - 40,559 - - - 40,559
- - 15,803 20,870 - 36,673 - 109 - - 872 981
12,507 40,668 15,803 20,870 872 128,544 - - - - - 17,372
- - - - - 13,972
10,503 - - - - 10,717 - 46,481 - - - 46,481
- - 16,564 8,952 - 25,516
- - - - 759 759
76 - 2 79 12 3,330
10,579 46,481 16,566 9,031 771 118,147 1,928 (5,813) (763) 11,839 101 10,397 65 (387) 181 (98) 3 165
(12) 58 (85) 143 (1) (13)
- - - - - 297

- - - - - 11
- - - - - 3
(6) - - (3) (1) (66)
47 (329) 9
6 42 1 397
1,975 (6,142) (667) 11,881 102 10,794 (1,554) - - - - 1,095 - - - - - (1,715)
421 (6,142) (667) 11,881 102 10,174
2,649 (93,282) (34,864) (37,496) (306) (149,953) 3,070$ (99,424)$ (35,531)$ (25,615)$ (204)$ (139,779)$

INTERNAL SERVICE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
194 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended June 30, 2023
Computing and
Communication Buildin g Fleet
Services Maintenance Re placement
Cash Flows from Operating Activities:

Ca s h recei ved from cus tomers 20,069 $ 14,494$ 3,365$ Ca s h pa yments to s uppl i ers for goods a nd s ervi ces (5,270) (7,765) (84) Ca s h pa yments to empl oyees for s ervi ces (12,208) (5,235) (184) M isc ellaneous r ev enue - - 168
Net cash provided by (used for) operating activities 2,591 1,494 3,265 Cash Flows from Noncapital Financing Activities:

Tr ansfer s fr om ot her funds 9 3 0 165 1,554
Tra ns fers to other funds (408) (1,307) -
Net cash provided by (used for) noncapital financing activities 522 (1,142) 1,554 Cash Flows from Capital and Related Financing Activities:

Acqui s i ti on a nd cons tructi on of capi tal as s ets (1,480) - (3,524) Pr oc eeds fr om sale of c apit al asset s - - 11
Proceeds from lea s e activities - 277 -
Net cash used for capital and related financing activities (1,480) 277 (3,513) Cash Flows from Investing Activities:

Inv est ment ear nings (loss) 4 2 130 229
Net change in fair v alue of inv estments 8 (37) (87) Net cash provided by (used for) investing activities 50 93 142 Net increase (decrease) in cash and cash equivalents 1,683 722 1,448 Cash and cash equivalents at beginning of year 2,079 8,039 14,932 Cash and cash equivalents at end of year 3,762$ 8,761$ 16,380$ Reconciliation of cash and cash equivalents to amounts
reported on the Statement of Net Position:

C ash and inv est ment s 3 ,7 6 2 8,761 16,380
Cash and cash equivalents at end of year 3,762$ 8,761$ 16,380$

CITY OF PASADENA FINANCIAL SECTION INTERNAL SERVICE FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 195

Fleet
Repair and Workers' General 311
Maintenance Benefits Com pensation Liabilit y Call Center Total 12,533$ 40,815 $ 15,786 $ 9,239 $ 871 $ 117,172 $ (7,833) (3,913) (6,619) (8,192) (122) (39,798) (2,915) (36,573) (9,645) (938) (687) (68,385) - - - - - 168 1,785 329 (478) 109 62 9,157 (1,554) - - - - 1,095 - - - - - (1,715) (1,554) - - - - (620) (274) - (26) (154) (23) (5,481) - - - - - 11 - - - - - 277 (274) - (26) (154) (23) (5,193) 65 (387) 181 (98) 3 165 (12) 58 (85) 143 (1) (13) 53 (329) 96 45 2 152 10 - (408) - 41 3,496 3,894 - 12,574 - 297 41,815 3,904$ -$ 12,166$ -$ 338$ 45,311$ 3,904 - 12,166 - 338 45,311 3,904$ -$ 12,166$ -$ 338$ 45,311$

INTERNAL SERVICE FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
196 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Fiscal Year Ended June 30, 2023
Computing and
Communication Buildin g Fleet
Services Maintenance Re placement
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:

Opera ti ng i ncome (l os s ) 1,038 $ 548$ 1,519$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Depreciati on and amorti zation 1,663 10 1,488 (Increase) decrease in accounts receivable (5) (36) (22) (Increase) decrease in due from component units - - -
Increase (decrease) in due to other funds - - -
(Increase) decrease in inventories - - -
(Increase) decrease in prepaids and other assets 192 - 334 Increase (decrease) in accounts payable and accrued liabilities 49 943 (48) Increase (decrease) in insurance claims pay able - - - Increase (decrease) in compensated absences - - - Increase (decrease) in deferred inflows - non-lease related (4,743) (1,968) (80) (Increase) decrease in deferred outflows (3,991) (1,530) (54) Inc r ease (dec r ease) in net OP EB liability (4 6 ) 119 (1) Increase (decrease) in net pension liability 8,434 3,408 129 Total adjustments 1,553 946 1,746
Net cash provided by (used for) operating activities 2,591$ 1,494$ 3,265$ Non-cash Investing, Capital and Financing Activities
Appr eciation (depr eciation) in fair v alue of inv estments (8 ) 37 87

CITY OF PASADENA FINANCIAL SECTION FIDUCIARY FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 197

Fleet
Repair and Workers' General 311
Maintenance Benefits Com pensation Liabilit y Call Center Total 1,928$ (5,813) $ (763) $ 11,839 $ 101 $ 10,397 $ 76 - 2 79 12 3,330 22 146 (17) (28) - 60 3 - - 15 - 18 - 7,326 - (504) - 6,822 98 - - - - 98 - - - - - 526 (209) (1,596) 20 89 13 (739) - - 154 (11,445) - (11,291) - 666 - - - 666 (1,045) (22,814) (2,015) (115) (266) (33,046) (882) (17,511) (3,243) (168) (207) (27,586) (56) 27 26 61 (38) 92 1,850 39,898 5,358 286 447 59,810 (143) 6,142 285 (11,730) (39) (1,240) 1,785$ 329$ (478)$ 109$ 62$ 9,157$ 12 (58) 85 (143) 1 13

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FIDUCIARY
FUNDS

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2023
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CITY OF PASADENA FINANCIAL SECTION FIDUCIARY FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 201

FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the City in a trustee or custodial capacity for individuals, governmental entities, and others, and are oper ated by carrying out the specifications of trust indentures, statutes, ordinances, or other governing regulations.

Pension (and Other Employee Benefit) Trust Funds:

Deferred Compensation Fund – to account for resources earned by present and former employees and held in a trust capacity by the City in accordance with the provisions of Internal Revenue Code Section 457.

Fire and Police Retirement Fund – to account for transactions of the Fire and Police Retirement System, which is governed by its own retirement board.

Custodial Funds:

Lake/Washington Special Assessment District Fund – to account for maintenance costs of the parking lot located at Lake Avenue and Washington Boulevard.

Library Equipment Replacement Fund – to account for the library automated control system operated under joint agreement with the City of Glendale.

Workforce Innovation and Opportunity Act Fund – to account for the administration of Workforce Innovation and Opportunity Act (WIOA) activities under the direction of the Foothill Workforce Development Board (FWDB).

Open Space Assessment District Fund – to account for receipt and disbursement of debt service activity related to the acquisition and improvement of the Annandale Canyon Estates and adjacent property to be established as open space.

Pasadena Rental Housing Board Fund – to account for resources to provide affordable housing and community development opportunities for low- and moderate-income persons to enhance and strengthen the City.

Private-Purpose Trust Funds : The fiduciary fund type used to report all trust arrangements, other than those properly reported in employee benefit trust funds or investment trust funds, under which principal and income benefit individuals, private organizations, or other governments. Private-purpose trust funds are used for the acti vities of the Successor Agency to the Pasadena Community Development Commission (PCAC). See the next tab for the combining statements related to the Successor Agency.

FIDUCIARY FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
202 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Net Position
Pension (and Other Employee Benefit) Trust Funds
June 30, 2023
Fire & Police
Deferred Retirement
Compensation S ystem Total
Assets:

Current assets:

C ash and c ash e quivalents 350,687$ 2,628$ 353,315$ Short-term i nves tments - 4,877 4,877
Total current assets 350,687 7,505 358,192
Receivables:

Accounts - 2 2
Interest - 173 173
Pendin g trade s ales - 1,854 1,854
Total receivables - 2,029 2,029
Investments, at fair value:

Government and a gencies - 15,344 15,344
Fixed income mutual funds - 13,798 13,798
Domestic cor porate obli gations - 19,599 19,599
Inter national c or porate obli gat ions - 1,266 1,266
Real estate - 12,722 12,722
Equit y - domestic - 19,982 19,982
Equit y - international - 19,952 19,952
Total investments - 102,663 102,663
Total assets 350,687 112,197 462,884
Liabilities:

Accounts payable and ac c r ued liabilit ies - 59 59
Pending trade purchases - 7,761 7,761
Total liabilities - 7,820 7,820
Net position reserved in trust:

Held in trust for pensions 350,687 104,377 455,064
Total net position reserved in trust 350,687$ 104,377$ 455,064$

CITY OF PASADENA FINANCIAL SECTION FIDUCIARY FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 203 Combining Statement of Changes in Net Position
Pension (and Other Employee Benefit) Trust Funds
For the Fiscal Year Ended June 30, 2023
Fire & Police
Deferred Retirement
Compensation System Total
Additions:

Contributions:

Plan members 15,570$ -$ 15,570$
Total contributions 15,570 - 15,570
Net investment income:

Inv estment earnin gs3 3,264 1,027 34,291
Net chan ge in fair v alue of inv estments - 2,950 2,950 Dividends - 1,617 1,617
Gross investment income 33,264 5,594 38,858
Less investment expenses - (581) (581)
Total net investment income 33,264 5,013 38,277
Total additions 48,834 5,013 53,847
Deductions:

Benefits paid to par t ic ipant s 2 3,023 11,954 34,977 Adminis trative ex penses 216 344 560
Total deductions 23,239 12,298 35,537
Change in net position 25,595 (7,285) 18,310
Net position held in trust for employees:

Begi nni ng of yea r 325,092 111,662 436,754
End of year 350,687$ 104,377$ 455,064$

FIDUCIARY FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
204 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Net Position
Custodial Funds
June 30, 2023
Lake/
Washington Workforce
Special Library Innovation and O pen Space
Assessment E quipment O pportunity Assessment Pasadena Rental District Re placement Act (WIOA) District Housin g Board Total Assets:

Cash and investments - $ 303$ 15$ 143$ -$ 461$ Accounts recei va bl e 4 6 692 3 - 705 Total assets 4 309 707 146 - 1,166 Liabilities:

Accounts payable and ac c r ued liabilities - - 849 1 5 855 Due to other gov ernments 10 - - - - 10 Due to bondholders - - - 916 - 916 Total liabilities 10 - 849 917 5 1,781 Net position (deficit) held in custody:

Res tri cted for s pec ial assessments (6) - - - - (6) Res tri cte
d for l i bra ry equi pment - 309 - - - 309 Res tri cted for WIOA - - (142) - - (142) Restric
ted for bondholders - - - (771) - (771)
Res tri cte
d for renta l hous i ng - - - - (5) (5) End of yea
r (6)$ 309$ (142)$ (771)$ (5)$ (615)$

CITY OF PASADENA FINANCIAL SECTION FIDUCIARY FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 205 Combining Statement of Fiduciary Net Position
Custodial Funds
For the Fiscal Year Ended June 30, 2023

Lake/
Washington Workforce
Special Library Innovation and O pen Space
Assessment E quipment O pportunity Assessment Pasadena Rental District Re placement Act (WIOA) District Housin g Board Total Additions:

Inv estment earnin gs (loss ) -$ 4 $ - $ 1 $ - $ 5 $ Assessment r ev enue 2 9 - - 83 - 112 Inter governmental - - 1,920 - - 1 ,920 Total additions 29 4 1,920 84 - 2,037 Deductions:

Contributions to Cit y 33 - - - - 33 Progra m expense - - 2,895 - - 2 ,895 Administra tive ex pense - - - 3 5 8 Interest ex pense - - - 55 - 55 Total deductions 33 - 2,895 58 5 2,991 Change in net position (4) 4 (975) 26 (5) (954) Net position (deficit) held in custody:

Be ginnin g of year (2) 305 833 (797) - 339 End of year (6)$ 309$ (142)$ (771)$ (5)$ (615)$

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SUCCESSOR AGENCY - COMBINED
ANNUAL COMPREHENSIVE FINANCIAL REPORT | FISCAL YEAR ENDED JUNE 30, 2023 (This page intentionally left blank)

CITY OF PASADENA FINANCIAL SECTION FIDUCIARY FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 209

PRIVATE-PURPOSE TRUST FUNDS

Private-purpose trust funds are one type of the fiduciary funds reported in the prior tab.

Successor Agency to Pasadena Community Development Commission (PCAC) – was formed to account for receipt of incremental property tax and disbursements related to enforceable obligations (debts) of the former redevelopment agency.

It will remain in place until all enforcea ble obligations, as approved on the Recognized Obligation Payment Schedule (ROPS) by California Department of Finance, are paid in full and all assets have been liquidated. It includes the following funds:

• Administration Fund – to account for administrative costs of the Successor Agency as approved on the ROPS.

• Redevelopment Obligation Retirement Fund – to account for receipts and disbursements of incremental property tax.

• Debt Funds – to account for enforceable obligations of the former redevelopment agency. They include Old Pasadena, Lincoln, Downtown, Fair Oaks, Orange Grove, Villa Parke, Lake /Washington project areas, and the Affordable Housing debt function. The Affordable Housing debt fund is used to account for the 2006 Tax Allocation Revenue Bonds (housing set-aside revenues – Townhouse Project Refunding), Housing Enabled by Local Partnerships (HELP) program loans, and payment of enforceable obligations of the former Low and Moderate Income Housing Fund.

PRIVATE-PURPOSE TRUST FUNDS FINANCIAL SECT ION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
210 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Net Position
Private-Purpose Trust Funds
June 30, 2023
Redevelopment
Obligation
Retirement Old Pasadena Lincoln Downtown
Assets
Current assets:

Cash and investments 5$ -$ -$ -$
Cash with fiscal a gent 80 - - -
Notes receivable - - - -
Allowanc e for unc ollec t ible
lon g-ter m r eceiv able - - - -
Total current assets 85 - - -
Noncurrent assets:

Land and land rights 214 - - -
Total noncurrent assets 214 - - -
Total assets 299 - - -
Net Position
Net position held in trust 299$ -$ -$ -$
Successor Agency

CITY OF PASADENA FINANCIAL SECTION PRIVATE-PURPOSE TRUST FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 211

Fair Oaks Orange Grove Villa Parke
Lake
Washington Total
43$ 70$ 9$ 86$ 213$ - - - - 80 515 - - - 515 (515) - - - (515) 43 70 9 86 293 - - - - 214 - - - - 214 43 70 9 86 507 43$ 70$ 9$ 86$ 507$ Successor Agency

PRIVATE-PURPOSE TRUST FUNDS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
212 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Changes in Net Position
Private-Purpose Trust Funds
For the Fiscal Year Ended June 30, 2023
Redevelopment
Obligation
Retirement Old Pasadena Lincoln Downtown
Additions:

Property ta xes 6,250$ -$ -$ -$
Gain /(loss ) on dis position of property 648 - - - M isc ellaneous r ev enues - - - -
Total additions 6,898 - - -
Deductions:

Statutor y pass-t hr ough ex penses - 3,755 55 -
Administrative expenses:

Count y administr ativ e ex penses - 129 7 649
Successor agency administrativ e
cost allowance 648 - - -
Total deductions 648 3,884 62 649
Transfers:

Transfers in - 3,884 62 649
Transfers out (6,178) - - -
Tota
l transfers (6,178) 3,884 62 649
Change in amount held in trust 72 - - -
Amount held in trust at be ginnin g of year 227 - - - Amount held in trust at end of year 299$ -$ -$ -$
Successor Agency

CITY OF PASADENA FINANCIAL SECTION PRIVATE-PURPOSE TRUST FUNDS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 213

Fair Oaks Orange Grove Villa Parke
Lake
Washington Total
-$ -$ -$ -$ 6,250$ - - - - 648 - 21 - - 21 - 21 - - 6,919 531 57 534 343 5 ,275 -
40 22 46 10 903 - - - - 648 571 79 580 353 6,826 571 79 580 353 6 ,178 - - - - (6,178) 571 79 580 353 - - 21 - - 93 43 49 9 86 414 43$ 70 $ 9 $ 86 $ 507 $ Successor Agency

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COMPONENT UNITS

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2023
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CITY OF PASADENA FINANCIAL SECTION COMPONENT UNITS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 217

DISCRETELY PRESENTED COMPONENT UNITS
Component units are
legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component units can be other orga nizations for which the nature and significance of their relationship with a primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Discretely presented component units do not meet one of the two criteria for blending. The two criteria required to blend component units are (1) the Board of the component unit is substantively the same as that of the City or (2) the component unit serves the City exclusively.

Rose Bowl Operating Company (RBOC) – incorporated on January 18, 1994, as a legally separate entity with the primary purpose of returning economic and civic value to the City by managing a world class stadium and a professional quality golf course complex in a residential open-space environment.

Pasadena Center Operating Company (PCOC) – established on September 19, 1973, as a legally separate entity with the primary purpose of managing and operating the Pasadena Center, a civic facility designed for conferences, exhibitions, trade shows, assemblies, cultural, educational, and recreational programs, and for the use, benefit, and enjoyment of the public.

Pasadena Community Access Corporation Board (PCAC) – establishe d on December 9, 1983, by Articles of Incorporation, to provide a means for individuals or groups to use cable telecommunications to communicate and share information.

COMPONENT UNITS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
218 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Net Position
Discretely Presented Component Units
June 30, 2023
Rose Bowl Pasadena Center Pasadena
Operating Operating Community
Company Company Access Corp.T otal
Assets:

Current assets:

Cash and investments 35,352$ 17,403$ 408$ 53,163$ Accounts recei va bl e, net 5,285 852 4 6,141
Inventor y 316 - - 316
Due from Cit y of Pasadena 235 676 - 911
Pre paids and other assets 224 121 11 356
L ease r ec eiv able - 18 - 18
De posits - - 12 12
Restr ic t ed c ash and c ash inv est ments - 7,912 556 8,468 Total current assets 41,412 26,982 991 69,385
Noncurrent assets:

Rest r ic t ed assets - c ash and inv estment s 1 0,633 - - 10,633 Due from Cit y of Pa s a dena 422 - - 422
L ease r ec eiv able 2 4 4 28 - 272
C apital asset s:

Not bein g de preci a ted/amor t ized - 2,426 - 2,426 Bein g de preci a ted/amor tized, net 148,967 116,558 79 265,604 Total noncurrent assets 160,266 119,012 79 279,357
Total assets 201,678 145,994 1,070 348,742
Deferred outflow of resources:

Accumulated decrease in fair value of hed gin g de ri va ti ve s - 4,432 - 4,432 Deferred refundin g char ges 1,396 834 - 2,230
P ension r elat ed 1,780 - - 1,780
Total deferred outflow of resources 3,176 5,266 - 8,442 Liabilities:

Current liabilities:

Accounts payable and ac c r ued liabilities 4,977 1,053 9 6,039 Accrued salaries and benefits 542 731 24 1,297
Accrued interest 3,076 483 - 3,559
Due to Cit y of Pasadena 1,529 - - 1,529
De posits payable 2,417 1,572 - 3,989
Lon g-term adv ance due within one yea r 100 - - 100 Com pensated absences due within one yea r 173 - 39 212 Lease liabilit y - 62 28 90
Subscri ption liabilit y - 89 - 89
Lon g-term debt due within one yea r 5,238 6,775 - 12,013 Unearned rev enue 5,191 - - 5,191
Total current liabilities 23,243 10,765 100 34,108
Noncurrent liabilities:

Accrued salaries and benefits 98 - - 98
L ease liabilit y - 11 - 11
Subscri ption liabilit y - 137 - 137
Lon g-term a dva nce 400 - - 400
Der iv ativ e instr ument liability - 4,432 - 4,432 Lon g-term debt , net of current portion 196,756 127,945 - 324,701 Net pension liabilit y 3,526 - - 3,526
Total noncurrent liabilities 200,780 132,525 - 333,305 Total liabilities 224,023 143,290 100 367,413
Deferred inflow of resources:

Deferred refundi n g cha rge- 3,699 - 3,699
Serv ice concession a greement - 117 - 117
Leas e rel a ted 463 46 - 509
Pens i on rel a ted 88 - - 88
Total deferred inflow of resources 551 3,862 - 4,413 Net position/(deficit):

Net inv estment in c apit al asset s (24,145) 11,703 51 (12,391) Restrict
ed 10,633 2,199 556 13,388
Unres tri cted (6,208) (9,794) 363 (15,639)
Total ne
t position/(deficit) (19,720)$ 4,108$ 970$ (14,642)$

CITY OF PASADENA FINANCIAL SECTION COMPONENT UNITS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 219 Combining Statement of Revenues, Expenses and Changes in Net Position Discretely Presented Component Units
For the Fiscal Year Ended June 30, 2023
Rose Bowl Pasadena Cente r Pasadena
Operating Operating Community
Company Company Access Corp.T otal
Operating revenues:

Charges for services:

Rose Bowl 41,941$ -$ -$ 41,941$
Golf course 10,471 - - 10,471
Pasadena Center O peratin g Compan y - 12,746 - 12,746 Pasadena Communit y Access Cor poration - - 1,093 1,093 Total operating revenues 52,412 12,746 1,093 66,251 Operating expenses:

Rose Bowl 34,072 - - 34,072
Golf course 8,047 - - 8,047
Pasadena Center O peratin g Compan y - 11,837 - 11,837 Pasadena Communit y Access Cor poration - - 909 909 De preci a ti on/amor tization 11,888 3,990 194 16,072 Total operating expenses 54,007 15,827 1,103 70,937 Operating loss (1,595) (3,081) (10) (4,686)
Nonoperating revenues (expenses):

Contributions from Cit y of Pasadena - - - - Grant revenues - 67 - 67
Tra ns i ent occupanc y ta xes - 11,300 - 11,300
Tourism business im provement district tax - 4,029 - 4,029 Facilit y res tora ti on fee - 137 - 137
Investment income 636 368 - 1,004
Interest income - - - -
Interest ex pense (12,236) (5,412) - (17,648)
Leas
e revenues - 16 - 16
Public, education, and government (PEG) revenue - - 191 191 PEG e xpense - - (90) (90)
Other
nono peratin g revenues 4,585 - - 4,585
Total nonoperating revenues (7,015) 10,505 101 3,591 Income before capital contributions (8,610) 7,424 91 (1,095) Capital contributions - 76 - 76
Changes in net position (8,610) 7,500 91 (1,019) Net
pos i ti on a t begi nni ng of yea r (11,110) (3,392) 879 (13,623) Net position at end of year (19,720)$ 4,108$ 970$ (14,642)$

COMPONENT UNITS FINANCIAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)
220 Annual Comprehensive Financial Report | June 30, 2023 Combining Statement of Net Position
Discretely Presented Component Unit
Rose Bowl Operating Company
June 30, 2023
Golf
Rose Bowl Course Total
Assets
Current assets:

Cash and investments 17,986$ 17 ,366$ 35 ,352$
Accounts recei vabl e, net 5,141 144 5,285
Lease r ec eiv able 2 35 - 235
Inv entory 57 259 316
Prepaids and other assets 2 24 - 224
Total current assets 23,289 18,123 41,412
Noncurrent assets:

Due from Cit y of Pasadena 422 - 422
Rest r ic t ed asset s - c ash and inv est ment s 1 0,633 - 10,633 Lease r ec eiv able 2 44 - 244
Capital assets:

Bein g de preci a ted/amor tized, net 143,372 5,595 148,967 Total noncurrent assets 154,671 5,595 160,266
Total assets 177,960 23,718 201,678
Deferred outflow of resources
Deferred refundi n g cha rge1 ,396 - 1,396
Pension related 1,719 61 1,780
Total deferred outflow of resources 3,115 61 3,176 Liabilities
Current liabilities:

Accounts payable and ac c r ued liabilities 3,783 1,194 4,977 Accrued salaries and benefits 491 51 542
Accrued interest payable 3,076 - 3,076
Due to Cit y of Pasadena 1,529 - 1,529
De posits 2,417 - 2,417
Unearned rev enues 5,005 186 5,191
Current portion of lon g-term advance 100 - 100
Current portion of com pensated absences 167 6 173 Current portion of lon g-term debt 5,186 52 5,238
Total current liabilities 21,754 1,489 23,243
Noncurrent liabilities:

Long-term advance 400 - 400
Compensated absences 88 10 98
Long-term debt , net of current portion 196,290 466 196,756 Net pension liabilit y 3,406 120 3,526
Total noncurrent liabilities 200,184 596 200,780 Total liabilities 221,938 2,085 224,023
Deferred inflows of resources
Leas e related 463 - 463
Pension related 62 26 88
Total deferred inflows of resources 525 26 551
Net Position
Net inv estment in c apital assets (29,223) 5,078 (24,145) Res tri c
ted for debt s ervi ce 10,633 - 10,633
Unres tri cted (22,798) 16,590 (6,208)
Total n
et position (deficit) (41,388)$ 21,668$ (19,720)$

CITY OF PASADENA FINANCIAL SECTION COMPONENT UNITS (AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 221 Combining Statement of Revenues, Expenses and Changes in Net Position Discretely Presented Component Unit
Rose Bowl Operating Company
For the Fiscal Year Ended June 30, 2023
Rose Bowl Golf Course Total
Operating revenues:

Charges for services:

Rose Bowl 41 ,941$ - $ 41,941$
Golf course - 10,471 10,471
Total operating revenues 41,941 10 ,471 52 ,412 Operating expenses:

Rose Bowl 34 ,072 - 34,072
Golf course - 8,047 8,047
De pre ci a ti on/amortization 11,202 686 11,888 Total operating expenses 45,274 8,733 54,007 Operating income (loss) (3,333) 1,738 (1,595) Nonoperating revenues (expenses):

Inv estment earnin gs (loss ) 620 16 636
Interest ex pense (12,236) - (12,236)
Ot
her nono peratin g re ve nue s 4,582 3 4,585
Total nonoperating revenues (expenses) (7,034) 19 (7,015) Changes in net position (10,367) 1,757 (8,610) Ne
t position (deficit) at beginning of year (31,021) 19,911 (11,110) Net position (deficit) at end of year (41,388)$ 21,668$ (19,720)$ (This page intentionally left blank)

STATISTICAL SECTION
ANNUAL COMPREHENSIVE FINANCIAL REPORT | FISCAL YEAR ENDED JUNE 30, 2023 (This page intentionally left blank)

STATISTICAL SECTION CITY OF PASADENA
(AMOUNTS EXPRESSED IN THOUSANDS)
224 Annual Comprehensive Financial R eport | June 30, 2023

STATISTICAL SECTION CONTENT DESCRIPTION
(Unaudited)
This section of the City of Pasadena’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Contents
Financial Trends 226
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Net Position
Changes in Net Position
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Revenue Capacity 237
These schedules contain information to help the reader assess the City’s two most significant local revenue sources by type, the property and sales tax for governmental activities and electric revenue for business-type activities.

Assessed Value and Estimated Actual Value of Taxable Property Direct and Overlapping Property Tax Rates
Principal Property Taxpayers
Property Tax Levies and Collections
Taxable Sales by Category
Electricity Sold by Type of Customer
Electricity Rates
Electricity Customers
Debt Capacity 248
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and t
he City’s ability to issue additional debt in the future.

Ratio of Outstanding Debt by Type
Ratio of General Bonded Debt Outstanding
Direct and Overlapping Bonded Debt
Legal Debt Margin Information
Governmental Activity Debt
Business-Type Activity Debt
Demographic and Economic Information 260
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Demographic and Economic Statistics
Principal Employers
Operating Information 262
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

Full-time and Part-time City Employees by Program
Operating Indicators by Function/Program
Capital Asset Statistics by Function/Program
Sources
: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.

CITY OF PASADENA STATISTICAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | Jun e 30, 2023 225

STATISTICAL SECTION CITY OF PASADENA
(AMOUNTS EXPRESSED IN THOUSANDS)
226 Annual Comprehensive Financial Report | June 30, 2023 Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017
Governmental activities
Net inv estment in c a pit al asset s 4 1 9,328$ 408 ,195$ 405 ,858$ 418 ,266$ Restricted 60 ,592 44,327 56,050 55,477
Unrestricted (29,751) (339,336) (325,826) (310,488)
To
tal governmenta l a ctivities net position 4 5 0,169 113,186 136,082 163,254 Business-type activities
Net inv estment in c a pit al asset s 4 2 2,610$ 371 ,526$ 449 ,141$ 408 ,944$ Res tri cted 133 ,791 176,248 153,241 171,545
Unres tri cted 159,948 114,512 131,037 183,279
Tot al business-t ype a ctivities net position 7 1 6,349$ 662 ,286$ 733 ,419$ 763 ,768$ Primary government
Net inv estment in c a pit al asset s 8 4 1,938$ 779 ,721$ 854 ,999$ 827 ,210$ Res tri cted 194 ,383 220,574 209,291 227,022
Unres tri cted 130,197 (224,824) (194,789) (127,209) To
tal pri ma ry gov ernment net position 1 ,166,518$ 775 ,471$ 869 ,501$ 927 ,023$ Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)
Annual Comprehensive Financial Report | June 30, 2023 227 Financial Trends
2018 2019 2020 2021 2022 2023
439,355$ 458,378$ 470,689$ 468,005$ 471,778$ 493,108$ 69,730 79,205 84,006 82,123 81,495 86,143
(362,358) (362,242) (364,572) (390,132) (403,721) (345,893) 14 6,726 175,341 190,123 159,996 149,553$ 233,358$ 420,692$ 434,358$ 458,534$ 486,944$ 499,719$ 521,998$ 152,811 142,806 128,220 126,668 109,474 93,335
199,209 230,707 244,811 240,454 270,029 278,453 772,712$ 807,871$ 831,565$ 854,066$ 879,222$ 893,786$ 860,047$ 892,736$ 929,223$ 954,949$ 971,497$ 1,015,106$ 222,541 222,011 212,226 208,791 190,969 179,478 (163,149) (131,535) (119,761) (149,678) (133,691) (67,440) 91 9,439$ 983,212$ 1,021,688$ 1,014,062$ 1,028,775$ 1,127,144$ Fiscal Year

STATISTICAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

228 Annual Comprehensive Financial Report | June 30, 2023 Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)

2014 2015 2016 2017
Expenses
Governmental activities:

General gov ernment 53 ,260$ 38 ,902$ 59 ,425$ 42 ,895$ P ublic safet y 104,708 106 ,327 96 ,484 127 ,760 Trans porta tion 59 ,581 49 ,526 35 ,739 41 ,738 Utilit y - - - - Sa nita tion 4 ,106 4 ,232 4 ,267 4 ,290 Health 14 ,239 13 ,764 10 ,914 10 ,558 C ultur e and leisur e 3 1 ,321 30 ,127 32 ,286 34 ,249 Communit y develo pment 31 ,669 35 ,248 72 ,725 39 ,787 Interes t a nd other fi s ca l cha rges 11 ,047 10 ,310 9 ,187 8 ,611 Total governmenta l a ctivities ex pens es 309 ,931$ 288 ,436$ 321 ,027$ 309 ,888$ Business-type activities:

El ectri c 177 ,590$ 171 ,282$ 174 ,858$ 183 ,522$ Water 51 ,054 48 ,462 45 ,240 48 ,009 Refuse 13 ,022 12 ,843 14 ,421 14 ,330 Pa rki ng 14,556 13 ,532 14 ,488 13 ,062 Tel ecommuni cati on 849 89 141 110 Tot al business-t ype activities ex pens es 257 ,071 246 ,208 249 ,148 259 ,033 Total pri ma ry gov ernment ex pens es 567 ,002$ 534 ,644$ 570 ,175$ 568 ,921$ Program Revenues
Governmental activities:

Cha rges for s ervi ces :

General gov ernment 17 ,872$ 18 ,750$ 18 ,053$ 14 ,651$ P ublic safet y 13,050 14 ,674 14 ,841 19 ,244 Trans portation 14 ,253 16 ,059 16 ,384 16 ,663 Sanitation 8 ,010 7 ,875 7 ,008 7 ,127 Hea l th 797 1 ,022 644 870 C ultur e and leisur e 3 ,382 3 ,566 4 ,504 5 ,870 Communit y develo pment 12 ,935 12 ,630 14 ,193 15 ,803 Operatin g grants and contributions 35 ,948 41 ,943 40 ,422 41 ,050 Capital grants and contributions 16 ,504 16 ,197 15 ,383 9 ,083 Total governmental activities progra m revenues 122 ,751$ 132 ,716$ 131 ,432$ 130 ,361$ Business-type activities:

Cha rges for s ervi ces :

El ectri c 188 ,174$ 203 ,748$ 199 ,197$ 202 ,480$ Water 61 ,233 57 ,440 50 ,835 58 ,287 Refuse 11 ,925 11 ,959 11 ,880 11 ,775 Pa rki ng 13,334 13 ,603 14 ,621 14 ,595 Tel ecommuni ca ti on 816 655 609 669 Operatin g grants and contributions - - - - Capital grants and contributions 2 ,828 2 ,905 2 ,790 4 ,811 Tot al business-t ype activities progra m revenues 278 ,310 290 ,310 279 ,932 292 ,617 Total pri ma ry gov ernment progra m revenues 401 ,061$ 423 ,026$ 411 ,364$ 422 ,978$ Net Revenues (Expenses)
Governmental activities (187,180) (155,720) (189,595) (179,527) Business-t ype activities 21 ,239 44 ,102 30 ,784 33 ,584 Tota l net revenues (expenses ) (165,941)$ (111,618)$ (158,811)$ (145,943)$ Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 229 Financial Trends

2018 2019 2020 2021 2022 2023
45,755$ 49 ,619$ 67 ,355$ 72 ,811$ 86,104$ 68,549 $ 142,495 145 ,937 152 ,889 148 ,287 151,005 157,931 46,452 52 ,239 55 ,429 48 ,597 44,752 49,533 - - 6 ,134 171 124 135 4,376 4 ,117 4 ,600 6 ,783 6,091 5,831 11,347 13 ,401 15 ,367 17 ,465 17,062 18,967 38,365 37 ,135 37 ,224 45 ,291 48,529 50,399 45,114 47 ,304 52 ,019 57 ,362 62,727 59,411 8,411 7 ,889 6 ,425 6 ,500 6 ,364 6 ,311 342,315$ 357 ,641$ 397 ,442$ 403 ,267$ 422 ,757$ 417 ,067$ 187,872$ 196 ,874$ 197 ,138$ 196 ,389$ 196,718$ 239,414 $ 54,757 56 ,738 58 ,974 63 ,933 61,518 61,705 15,695 16 ,528 19 ,429 20 ,059 18,818 21,509 14,140 14 ,502 14 ,713 12 ,097 10,901 13,222 144 170 164 189 163 188 272,608 284 ,812 290 ,418 292 ,667 288 ,117 336 ,038 614,923$ 642 ,453$ 687 ,860$ 695 ,934$ $ 710 ,875 $ 753 ,105 10,861$ 11 ,203$ 20,245$ 13,504 $ 12,984 $ 13,551 $ 15,708 15 ,297 13,656 10,322 13,736 15,285 28,165 30 ,555 26,933 20,811 16,607 18,761 7,665 8 ,193 7,728 7,321 7,301 7,721 2,346 2 ,432 2,497 2,154 2,168 2,610 3,181 2 ,748 1,725 674 1,096 840 13,286 14 ,954 12,487 11,795 14,470 16,276 47,058 59 ,763 56,837 60,764 80,747 108,876 14,190 8 ,582 36,663 9,449 10,184 22,223 142,460$ 153 ,727$ 178 ,771$ 136 ,794$ $ 159 ,292 $ 206 ,143 212,116$ 218 ,054$ 217 ,873$ 222 ,266$ 226,509$ 255,825 $ 62,592 60 ,181 62 ,466 71 ,269 69,359 64,961 11,413 11 ,743 11 ,644 11 ,502 11,864 12,309 14,560 13 ,977 11 ,229 9 ,198 11,066 13,545 471 680 439 568 776 415 2,355 1 ,462 1 ,784 2 ,777 6,188 2,161 4,112 3 ,615 2 ,934 4 ,248 4,559 5,897 307 ,619 309 ,712 308 ,369 321 ,828 330 ,320 355 ,113 450,079$ 463 ,439$ 487 ,140$ 458 ,622$ $ 489 ,613 $ 561 ,256 (199,855) (203,914) (218,671) (266,473) (263,465) (210,924) 35 ,011 24 ,900 17 ,951 29 ,161 42 ,203 19 ,075 (164,844)$ (179,014)$ (200,720)$ (237,312)$ $ (221,262) $ (191,849) Fiscal Year

STATISTICAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

230 Annual Comprehensive Financial Report | June 30, 2023 Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)

2014 2015 2016 2017
General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Property, lev ied for general purpose 44 ,066$ 56 ,446$ 59 ,141$ 68 ,752$ Sales 33 ,198 33 ,706 36 ,855 35 ,708 Utilit y users' 28 ,893 29 ,316 28 ,100 28 ,251 Transient occu panc y 12 ,043 13 ,165 14 ,864 15 ,229 Cons truction 3 ,682 4 ,770 4 ,375 3 ,491 Business lic ense 5 ,633 5 ,836 6 ,483 6 ,347 Fra nchi s e 2,361 2,903 2,542 2,797 Other taxes 7 ,088 7 ,181 7 ,335 7 ,298 Other inter gov ernmental 15 ,924 16 ,648 18 ,005 18 ,259 Use of mone y - inv estment ear nin gs4 ,833 4 ,461 4 ,955 1 ,857 Use of property - lease activit y - - - - Net chan ge in fair v alue of inv estments - - - - Gain on sale of asset s 1 ,153 370 (60) - M isc ellaneous r ev enues 4 ,655 4 ,863 14 ,621 8 ,224 Reinst at ement of P C DC L oan - - 11,128 - Transfers 16 ,305 14 ,657 15 ,033 18 ,652 Total governmenta l a ctivities $ 179 ,834 $ 194 ,322 $ 223 ,376 $ 214 ,865 Business-type activities:

Taxes:

Franchise tax 3 ,907$ 4 ,319$ 4 ,575$ 4 ,893$ Use of mone y - inv estment ear nin gs7 ,136 5 ,529 6 ,593 2 ,372 Use of property - lease activit y - - - - Net chan ge in fair v alue of inv estments - - - - Gain on sale of asset s (1,161) - (311) - M isc ellaneous r ev enues 8 ,977 15 ,631 42 ,427 8 ,154 Transfers (16,305) (14,657) (15,033) (18,652) Tot al business-t ype activities 2 ,554 10 ,822 38 ,252 (3,234) Total pri ma ry government $ 182 ,388 $ 205 ,144 $ 261 ,627 $ 211 ,631 Changes in Net Position
Gov er nmental activ ities (7,346) 38 ,602 33 ,781 35 ,338 Business-t ype activities 23 ,793 54 ,924 69 ,036 30 ,351 Total pri ma ry government $ 16 ,447 $ 93 ,526 $ 102 ,816 $ 65 ,688 Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 231 Financial Trends

2018 2019 2020 2021 2022 2023
63,483$ 68 ,275$ 70 ,689$ 76 ,579$ 79,144$ 84,327 $ 35,076 44 ,616 57 ,513 62 ,308 74,366 76,899 27,881 26 ,982 26 ,966 26 ,938 30,124 32,790 15,814 16 ,948 13 ,090 6 ,298 14,711 18,675 3,265 4 ,985 4 ,091 2 ,097 2,626 3,969 7,196 7 ,302 6 ,900 6 ,351 5,890 7,841 2,733 2,881 2,827 2,813 2,730 3,749 7,449 7 ,286 1 ,614 5 ,661 16,309 17,048 19,996 20 ,345 20 ,831 25 ,424 23,797 25,387 3,008 10 ,922 8 ,231 2 ,518 2,239 4,817 - - - - 731 1,652 - - - - (15,262) (1,651) (299) - 2 ,288 - - - 11,372 8 ,270 5 ,493 3 ,091 4,664 3,361 - - - - - - 18,766 13 ,976 14 ,349 16 ,267 10 ,954 15 ,865 $ 215 ,740 $ 232 ,788 $ 234 ,882 $ 236 ,345 $ 253 ,022 $ 294 ,729 5,359$ 5 ,787$ 6 ,083$ 5 ,722$ 6,162$ 6,713 $ 2,506 16 ,216 10 ,940 1 ,033 2,793 6,568 - - - - 395 441 - - - - (25,439) (4,449) (49) (1,114) - - (167) - 2,552 3 ,346 3 ,069 2 ,852 10,571 2,940 (18,766) (13,976) (14,349) (16,266) (11,362) (15,933) (8,398) 10 ,259 5 ,743 (6,659) (17,048) (3,720) $ 207 ,342 $ 243 ,047 $ 240 ,625 $ 229 ,686 $ 235 ,974 $ 291 ,009 15 ,885 28 ,874 16 ,211 (30,128) (10,443) 83 ,805 26 ,613 35 ,159 23 ,694 22 ,502 25 ,155 15 ,355 $ 42 ,498 $ 64 ,033 $ 39 ,905 $ (7,626) $ 14 ,712 $ 99 ,160 Fiscal Year

STATISTICAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

232 Annual Comprehensive Financial Report | June 30, 2023 Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)

2014 2015 2016 2017
General Fund:

Nons pendable 8 ,352$ 8 ,620$ 12 ,236$ 11 ,108$ Restricted - 400 400 400 Committed 34 ,868 30 ,951 33 ,451 47 ,563 A ssigned 5 ,043 11 ,087 17 ,227 26 ,825 Unassi gned 15 ,015 12 ,140 15 ,139 3 ,832 Total General Fund 63 ,278 63 ,198 78 ,453 89 ,727 All Other Governmental Funds:

Nons pendable 31 ,674 30 ,997 7 ,799 2 ,482 Restricted 57 ,300 52 ,516 55 ,650 55 ,077 Committed 72 ,479 87 ,144 101 ,338 106 ,631 A ssigned - - - - Unassi gned (7,981) (7,482) (8,126) (10,950) Total all other Governmental Funds 153 ,472 163 ,175 156 ,661 153 ,240 Total Governmental Funds 216 ,750$ 226 ,373$ 235 ,114$ 242 ,967$ Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 233 Financial Trends

2018 2019 2020 2021 2022 2023
4,545$ 1 ,590$ 14 ,853$ 13 ,626$ 13 ,697$ 14 ,316$ 10,995 11 ,631 12 ,106 13 ,718 12 ,101 12 ,596 46,949 50 ,775 55 ,120 51 ,687 57 ,339 71 ,985 12,426 15 ,099 25 ,082 31 ,326 23 ,079 57 ,407 11,957 19 ,605 445 (11,294) - 8 ,307 86,872 98 ,700 107 ,606 99 ,063 106 ,216 164 ,611 1,574 1 ,478 1 ,554 1 ,550 1 ,582 1 ,582 58,597 67 ,575 71 ,848 68 ,307 64 ,846 68 ,434 108,569 121 ,002 115 ,446 111 ,319 102 ,213 101 ,735 - - 1,652 1,944 2,775 1,361 (2,273) (3,574) (5,180) (6,133) (9,480) (6,905) 166,467 186 ,481 185 ,320 176 ,987 161 ,937$ 166 ,207$ 253,339$ 285 ,181$ 292 ,926$ 276 ,050$ 268 ,152$ 330 ,818$ Fiscal Year

STATISTICAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

234 Annual Comprehensive Financial Report | June 30, 2023 Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2014 2015 2016 2017
Revenues:

Taxes 136 ,965$ 153 ,323$ 159 ,694$ 167 ,874$ Licenses and permits 13 ,675 11 ,235 14 ,946 14 ,882 Inter gov ernmental 61 ,505 63 ,785 65 ,299 62 ,121 Cha rges for s ervi ces 43 ,416 49 ,413 46 ,984 49 ,324 Fi nes a nd forfei tures 6 ,768 7 ,329 7 ,378 7 ,802 Inv estment earnin gs5 ,255 4 ,294 4 ,780 1 ,752 Net chan ge in fair v alue of inv estments - - - - Lease rev enues 4 ,064 3 ,822 4 ,212 4 ,765 Interest - leases (as lessor ) - - - - M isc ellaneous r ev enues 6 ,081 7 ,133 16 ,341 12 ,072 Contri buti ons 7,807 11,759 6,496 5,397 Total revenues 285,536 312,093 326,130 325,989 Expenditures:

Current:

General gov ernment 34 ,613 44 ,283 47 ,488 42 ,054 P ublic safet y 99,871 106 ,469 111 ,012 116 ,577 Trans portation 36 ,912 37 ,018 35 ,282 40 ,196 Utilit y - - - - Sa nitation 4 ,106 4 ,274 4 ,356 4 ,324 Health 13 ,551 13 ,553 11 ,294 10 ,309 C ult ur e and leisur e 3 0 ,039 30 ,505 32 ,241 32 ,663 Communit y develo pment 29 ,579 31 ,933 60 ,841 34 ,370 Capital out la y 23,571 16 ,855 29 ,032 32 ,254 Debt service:

Pri ncipa l reti rement 20 ,808 129 ,469 6 ,611 6 ,345 Interest 9,797 8,730 8,139 8,744 Bond i s s ua nce cos ts - - - - Lease pay ments - - - - Subs cription payments - - - - Interest - leases and subscriptions - - - - Total expenditures 302,847 423,089 346,296 327,836 Excess (deficiency) of revenues
over (under) expenditures (17,311) (110,996) (20,166) (1,847) Other financin
g sources (uses):

Transfers in 84 ,444 61 ,085 51 ,606 121 ,920 Transfers out (65,045) (50,718) (38,028) (109,631) Transfers to com ponent unit (s) - - - - Leases issued - - - - Subscri ptions is sued - - - - Premi um (discount ) on debt issued - - (2,283) 5 ,790 Issuanc e of lon g-term debt 841 351 119 ,460 60 ,460 Payment to refunded bond escrow a gent - - - (60,762) Proceeds from sale of ca pital assets - - - - Reinstatement of PC DC Loan - - - 11 ,128 Total other financing sources (uses) 20,240 10,718 130,755 28,905 Extraordinary gain (loss): - 152 ,582 (2,197) - Net chan ge in fund balances 2 ,929$ 52 ,304$ 108 ,392$ 27 ,058$ Debt ser v ic e as a per c entage of
nonca pi ta l expendi tures 10.96% 34.02% 4.65% 5.10%
Fiscal Year

CITY OF PASADENA STATISTICAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 235 Financial Trends

2018 2019 2020 2021 2022 2023
162,898$ 179 ,275$ 183 ,689$ 189 ,044$ 225 ,899$ 245 ,298$ 15,022 13 ,979 13 ,297 12 ,791 15 ,283 17 ,068 74,093 75 ,237 78 ,475 87 ,260 106 ,225 158 ,718 53,417 59 ,111 53 ,066 45 ,996 43 ,548 47 ,759 7,262 6 ,377 6 ,520 3 ,491 4 ,190 5 ,372 1,597 9 ,207 7 ,536 2 ,445 2 ,170 4 ,654 - - - - (14,844) (1,638) 4,418 4 ,326 10 ,748 3 ,252 4 ,512 5 ,191 - - - - 9 6 14,240 11 ,929 7 ,082 5 ,792 8 ,227 6 ,619 5,512 12,476 8,103 3,630 3,089 1,527 338,459 371,917 368,516 353,701 398,306 490,574 38,611 40 ,655 73 ,958 65 ,554 63 ,810 58 ,611 126,827 133 ,461 138 ,942 138 ,803 147 ,560 159 ,339 45,078 49 ,621 50 ,298 44 ,110 40 ,795 47 ,471 - - 6 ,134 171 124 135 4,352 4 ,300 4 ,493 6 ,669 6 ,037 5 ,886 10,977 12 ,522 14 ,250 16 ,265 16 ,505 18 ,944 37,111 34 ,529 34 ,266 41 ,355 45 ,876 48 ,270 39,365 40 ,599 45 ,126 47 ,952 55 ,694 53 ,112 28,707 21 ,492 23 ,795 15 ,985 25 ,020 40 ,296 10,520 5 ,996 5 ,572 5 ,117 5 ,416 5 ,822 8,558 8,220 6,081 6,559 6,394 6,220 - - 562 - - - - - - - 1,116 1,234 - - - - - 725 - - - - 32 54 350,106 351,395 403,477 388,540 414,379 446,119 (11,647) 20,522 (34,961) (34,839) (16,072) 44,455 80,737 76 ,926 72 ,394 67 ,461 73 ,495 77 ,462 (62,326) (62,000) (67,530) (49,497) (65,023) (60,910) - - - - (408) (67) - - - - 110 838 - - - - - 887 - - - - - - - - 138 ,605 - - - - - (131,154) - - - - - 31 ,819 - - - - - - - - 18,411 14,926 44,134 17,964 8,174 18,210 - - - - - - 6,764$ 35 ,448$ 9 ,173$ (16,875)$ (7,898)$ 62 ,665$

5.94% 4.31% 3.22% 3.13% 3.33% 3.46%
Fiscal Year

STATISTICAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

236 Annual Comprehensive Financial Report | June 30, 2023

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CITY OF PASADENA STATISTICAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 237 Revenue Capacity
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years

Fiscal Secured Homeowners Net Secured Unsecured Total Assessed Total Direct Year Valuations Exemption Valuations Valuations Valuation Tax Rate 2014 22,534,203$ (134,257) $ 22,399,946 $ 575,006 $ 22,974,952 $ 0.22% 2015 23,756,525 (131,813) 23,624,712 608,539 24,233,251 0.25% 2016 25,354,224 (130,238) 25,223,986 602,659 25,826,645 0.26% 2017 26,599,121 (128,241) 26,470,880 625,032 27,095,912 0.30% 2018 28,631,957 (126,543) 28,505,414 638,858 29,144,272 0.25% 2019 30,388,233 (124,908) 30,263,325 662,995 30,926,320 0.23% 2020 32,158,077 (123,481) 32,034,595 672,205 32,706,801 0.25% 2021 34,107,320 (120,266) 33,987,055 676,673 34,663,728 0.25% 2022 35,394,651 (118,859) 35,275,793 688,899 35,964,692 0.24% 2023 37,215,187 (117,845) 37,097,342 717,826 37,815,168 0.24%

NOTES:

Amounts pertaining to the Pasadena Community Development Commission and the City have been combined.

In 1978 the voters of the Sta te of Ca li forni a pa s s ed Propos i tion 13 which li mited property taxes to a total ma xi mum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor " (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At tha t point, the new assessed v alue is r eassessed at the pur c hase pr ic e of t he pr oper ty sold. The assessed v aluation data shown abov e r epr esents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described abo ve .

SOURCE: Sta rting wi th FY2021, HdL Coren & Cone.

STATISTICAL SECTION CITY OF PASADENA (AMOUNTS EXPRESSED IN THOUSANDS)

238 Annual Comprehensive Financial Report | June 30, 2023 Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of assessed value)

2014 2015 2016 2017 2018
City Direct Rates:

Ci ty ba s i c ra te 0.1918 0.2329 0.2290 0.2537 0.2178 P C DC Suc c essor Agenc y 0.0282 0.0219 0.0331 0.0479 0.0356 Total Cit y Di rect Rate 0.2200 0.2548 0.2621 0.3016 0.2534 Overlapping Rates:

Los Angeles C ount y Genera l 0.4483 0.4118 0.4060 0.3647 0.4169 La Ca na da Uni fi ed School Di s tri ct 0.0672 0.0648 0.0617 0.0611 0.0591 Pa s a dena School Di s tri ct 0.4379 0.4389 0.4375 0.4386 0.4359 Pasadena Communit y
C ollege Di s tri ct 0.1247 0.1254 0.1254 0.1260 0.1248 Me tropol i tan Water Di s tri ct 0.0035 0.0035 0.0035 0.0035 0.0035 Total Di rect Rate 1.3017 1.2992 1.2963 1.2955 1.2936 Fiscal Year

NOTES:

FY2021 da ta wa s corrected i n FY2022.

The La Canada Unified School District Election of 2017 General Obligation Bonds, Series A, were authorized at an election of the registered voters of the La Canada Unified School District. The Bonds are general obligations of the Dis trict pa ya ble s olely from the proceeds of a d valorem property ta xes . The tota l a d va lorem ta x ra tes l evied, a s a percentage of a s s es s ed val ua ti on, by a l l ta xi ng enti ti es i n Ta x Ra te Area 4774, whi ch i ncl udes Pa s a dena Area C ommunity C ollege District.

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

In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is s hared by al l ta xing agencies for which the s ubject property res i des within. In a dditi on to the 1.00% fixed a mount, property owners a re cha rged ta xes a s a precenta ge of a s s es s ed property va lues for the pa yment of the va rious inter gov er nmental ov er lapping debt.

CITY OF PASADENA STATISTICAL SECTION
(AMOUNTS EXPRESSED IN THOUSANDS)

Annual Comprehensive Financial Report | June 30, 2023 239 Revenue Capacity

2019 2020 2021 2022 2023

0.2208 0.2161 0.2209 0.2201 0.2230

0.0096 0.0301 0.0335 0.0238 0.0165

0.2304 0.2462 0.2544 0.2439 0.2395

0.4396 0.4238 0.4166 0.4267 0.4295

0.0579 0.0552 0.0562 0.0552 0.0534

0.4363 0.4365 0.4362 0.4370 0.4389

0.1247 0.1245 0.1238 0.1234 0.1238

0.0035 0.0035 0.0035 0.0035 0.0035

1.2924 1.2897 1.2907 1.2897 1.2887 Fiscal Year

Pasadena City CouncilJanuary 22, 2024

Pasadena City Council
January 22, 2024