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)257+(<($5(1'('-81(5 %$6,&),1$1&,$/67$7(0(176 Attachment D
ROSE BOWL OPERATING COMPANY
(A COMPONENT UNIT OF THE CITY OF PASADENA, CALIFORNIA)
Basic Financial Statements
For the Year Ended June 30, 2025
7+,63$*(,17(17,21$//</()7%/$1.
ROSE BOWL OPERATING COMPANY
(A COMPONENT UNIT OF THE CITY OF PASADENA, CALIFORNIA)
Basic Financial Statements
For the Year Ended June 30, 2025
Table of Contents
Page
FINANCIAL SECTION
Independent Auditors’ Report ............................................................................................................................. 1
Management's Discussion and Analysis ................................................................................................................... 5
BASIC FINANCIAL STATEMENTS
Statement of Net Position .................................................................................................................................... 27
Statement of Revenues, Expenses, and Changes in Net Position .............................................................. 28
Statement of Cash Flows ............................................................................................................................. 29
Notes to the Basic Financial Statements ...................................................................................................... 31
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability ........................................................................... 52
Schedule of Plan Contributions .................................................................................................................... 54
OTHER REPORT
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................................................................... 57
7+,63$*(,17(17,21$//</()7%/$1.
LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Board of Directors
Rose Bowl Operating Company
Pasadena, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of each m ajor fund of Rose Bowl Operating Company, (hereafter, the “Company”), a component unit of the City of Pas adena, California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Company’s basic financial statements as listed in the table of contents.
In our opinion, the financial st atements referred to above pres ent fairly, in all material respects, the respective financial position of each major fund of the Company as of June 30, 2025, and the respective changes in financial position, and cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial State ments section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
Component Unit Reporting
As discussed in Note 1, the financial statements of the Company are intended to present the financial position, the changes in financial position, and cash flows of the business-t ype activities, of the City of Pasadena that is attributable to the transactions of the Company. They do not p urport to, and do not, present fairly the financial position of the City of Pasadena, as of June 30, 2025, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2025, the Company adopted new accounting guidance, GASB Statement No. 101, Compensated Absences. Our opinion is not modified with respect to this matter.
To the Board of Directors
Rose Bowl Operating Company
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 Company ability to continue as a going concern for twelve months beyond the financial statement date, includin g any currently known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to is sue an auditors’ report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted a uditing standards and Government Auditing Standards, will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted au diting standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skept icism 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 th ose risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of inter nal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
2 To the Board of Directors
Rose Bowl Operating Company
Pasadena, California
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required pension and other post-employment benefits schedules as listed on the table of contents be presented to supplement the basic financial statements. Such information is the resp onsibility 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 rep orting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary inf ormation in accordance with au diting standards generally accepted in the United States of America, which consisted of inquiries of manag ement about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 10, 2025, on our consideration of the Company’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regul ations, contracts, and grant a greements and other matters. The purpose of that report is solely to describe the scope of our testing of intern al control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Company’s internal control over financial reporting or on compliance. That report is an integra l part of an audit performed in accordance with Government Auditing Standards in considering Company’s internal control over financial reporting and compliance.
Irvine, California
December 10, 2025
3 7+,63$*(,17(17,21$//</()7%/$1.
4 ROSE BOWL OPERATING COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025
TABLE OF CONTENTS
I. OVERVIEW OF THE FI NANCIAL STATEMENTS
II. EXECUTIVE SUMMARY
III. FINANCIAL STATEMENTS
IV. FINANCIAL ANALYSIS
A. Statistical and Fiscal Trends
B. Net Event and Operati ons Income Comparison
C. Expense Comparison
D. Other Non-Operating Revenue
E. Balance Sheet Highlights
The objective of management’s discussion and analysis is to help readers of the Rose Bowl Operating Company’s (“RBOC”) financial statements be tter understand the financial p osition and operating activities for the fiscal year ended June 30, 2025 (FY 2025), with selected comparative information. This discussion should be read in conjunction with the financial statements. Unless otherwise indicated, years (2024, 2025) in this discussion refer to the fiscal year ended June 30.
I. OVERVIEW OF THE FI NANCIAL STATEMENTS
This discussion and analysis serves as an introduction to the RBOC’s basic financial statements. The RBOC’s financial statements consist of two components: 1) fund financ ial statements and 2) notes to the financial statements.
BASIC FINANCIAL STATEMENTS
The statement of net position presents information on all the RBOC’s assets and deferred outflows of resources, liabilities and deferred inflows, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the fin ancial position of the RBOC is improving or deteriorating.
The statement of revenues, expenses, and changes in net position presents information showing how the RBOC’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
The statement of cash flows presents information on the cash inflows and outflows of cash during the fiscal year, directly attributing cash flows to types of sources and uses an d reconciling those cash flows to the changes in net position for the fiscal year.
The basic financial statements can be found on pages 27-29 of this report.
NOTES TO THE BASIC FINANCIAL STATEMENTS
The notes provide additional information that is essential to a full understanding of the data provided in the financial statements. The notes to the financial statements can be found on pages 31-49 of this report.
5 II. EXECUTIVE SUMMARY (STADIUM AND GOLF COURSE)
In FY 2025, Stadium and Golf Course key areas impacting events, operations and net income are highlighted below:
• The RBOC continues commitment of efforts and resources toward addressing the increasing demands for capital, events fulfillment, golf complex maximization, community involvement, contributions towards debt service and representing the City of Pasadena worldwide.
• Legacy Connections has been successfully cultivating and growi ng a donor base, with a focus on grant applications as a newer form of capital funding efforts and the Lasting Legacy campaign targeting $80M capital funding.
• Rose Bowl Stadium hosted 7 f ootball games (6 UCLA and the 111th Rose Bowl Game), 4 Golden Voice Music Festivals, 1 Concert, 8 soccer matches (which included a match during the July 4 th 2024, celebration) and approximately 119 enterprise events and 11 Flea Markets.
• Net Event Income totaled approximately $20.5 million, after the impact of the Eaton Fire closures in January 2025. F i s c a l 2 0 2 5 N e t E v e n t I n c o m e w a s t h e 2nd highest in the past 20 years, 2 nd only to FY 2024 of $21.5 million.
• Golf operations revenues were d rastically impacted by the Eaton Fires and associated debris during FY 2025; also, golf businesses have faced a slight decline since the highs experienced after COVID.
• Events and demands for capita l projects created increased staffing demands that the RBOC has continuously been challenged with managing. At FY 2025 Year End the full-time employee count was 37 on a budget o f
42. Event staffing has especially been a challenge to fulfill in a competitive market. Overall expenditures have continued to increase in areas of security, parking, public safety, event production (such as plumbing, electrical, etc.), janitorial, catering, and rental expenses due to labor market demands.
• Investment earnings have been co nsistent for two years based on events, golf cash receipts and the valuation of the debt service reserve. FY 2025 investment earnings were $2.3 million mainly from the investments in California Asset Management Program (CAMP).
• Non-Operating revenues have in creased by $1.3 million primarily due to Tourism Business Improvement District revenues of $3.2 million or 2% of gross room rental revenue in FY2025; which is $500 thousand higher than budget due to the impact of Eaton fires hotel utilization (agreement sunsets June 30, 2033). Another significant impact was a $2.1 million reduction of subsidies due to the ref inancing of the 2010B bond. Concessionaire contributions, Senate Bill 96 tax recovery, Wireless carriers l icensing/cost recoveries and Music Festival contributions to capital make up the balance of $1.3 million. 6 III. FINANCIAL STATEMENTS
7 FINANCIAL STATEMENTS (Continued)
8 IV. FINANCIAL ANALYSIS
A. Statistical and Fiscal Trends
During FY 2025 the Rose Bowl stadium hosted 20 displacement events and 11 Flea Market events with a combined attendance of 868,000, as well as 119 enterprise events includi ng: runs/walks, food truck events, parties, graduations, and filming. The largest events attended were the Rose Bowl Game with 80,400 attendees on January 1, 2025, the July 4th LA Galaxy match and drone show with 56,400 attendees, and the AC/DC concert with 50,000 attendees. Also, the 6 FIFA Club world Cup matches and 1 Mexico-New Zealand match averaged 40,400 per event; 6 UCLA Football games averaged 22,500 per event, 4 Music Festivals averaged 20,900 per event and 11 Flea Market events averaged 16,100 per event.
9 Trend line represents high and current point.
FINANCIAL ANALYSIS (Continued)
Stadium / Golf Complex Net Event Income Comparison:
Stadium net event income for FY 2025 was $20.5 million, next cl osest historical high was FY 2014 which was $21.4 million. Highlights include football net event income of $10.7 million made up of UCLA $4.8 million and the 111th Rose Bowl Game quarterfinal hosting Ohio State vs. Oregon whic h drove an all-time high net event income of $5.9 million. The Music Festival contract, in the 4th year of the 7-year contract, yielded $3.1 million in net event income. During FY 2025 the Rose Bowl hosted (9) nine Other Major events (8 soccer matches, and 1 concert) with a combined $3.6 million net ev ent income, which included a July 4 th celebration/soccer match which netted $108,000. Other/Events Reconciliation/Development costs of $267,600 included an RBOC share settlement of the Party of the Century contribution and other prior year adjustments.
Enterprise events’ net income during FY 2025 was $1.6 million, after business losses of $282,000 mainly due to the January Eaton Fires. The average per enterprise event net income was approximately $13,300, consistent with prior years.
The Flea Market operated a net event income of $1.634 million for 11 events with the loss of the January event due to the Eaton Fires events, Average Net Event Income of $148,500 per event, consistent with prior years.
10 Trend line represents high and current point.
FINANCIAL ANALYSIS (Continued)
Golf Complex Key Statistics:
Brookside Golf Complex continues efforts to balance demand, cou rse availability (given commitments to displacement events), competitive pricing, reinvestment in course health, renovation, and future business concepts.
Below are key statistics utilized to manage the golf course financial performance:
• Total golf rounds of 126,700 generated a gross course revenue of $7.1 million. Total Revenues per Round of $55.95 increased from $52.44 in FY 2024 (Average per Round plus Average Range Fee Per Round). • A rounds per day average of 456 ro unds reflects the gradual decline of demand since 2021. • Playable days decreased to 278 days given the closure in the m onth of January due to the Eaton Fires as well as the 20 displacement events days (which displaces golf several days in event load in-out etc.).
Golf Complex Net Income (made up of the below operating units) was $1.3 million for FY 2 025; with key drivers from Golf Course, Displacement/Parking, Cost recoveries, Non-Op erating Revenues/Expenses and Overhead expenses (including Preventative Maintenance). Much of the misses to prior year and budget was due to the Eaton Fires impact.
11 Trend line represents high and current point.
FINANCIAL ANALYSIS (Continued)
B. Revenue/Expense, Net Event and Operations Income comparison (Stadium and Golf Complex)
The chart and associated table below are comparisons of FY 2024 to FY 2025 revenues, expenses, debt service (Net), preventative maintenance expenditures and capital set aside (or designation from operations for preventative maintenance).
Revenues, Expenses, Debt Service (Net), and Preventative Maintenance Fiscal Years 2024 and 2025:
12 Trend line represents high and current point.
FINANCIAL ANALYSIS (Continued)
Combined Net Event and Operations Income Comparison 7-Years:
Operating analysis excluding Depreciation and Nonoperating Contributions/Revenues
Stadium
The FY 2025 Net Event Income was $20.5 million and overhead exp enses were $14.1 m illion. Investment gain/interest expense and Non-Operating Revenues (Non-Capital) were $5.7 million, and Debt Service, Net of expenses was $12.7 million- for a Net Oper ating loss of $638,00 0 for the Stadium. The Stadium Net Operating loss ($638,000) was less than budgeted loss of ($3.3) million – even after the impacts of the Eaton Fires, estimated to be $1.55 million.
13 Trend line represents high and current point.
FINANCIAL ANALYSIS (Continued)
Golf Complex
Golf Complex Net Operating Income was $1.3 million with Eaton Fires impacting Complex Net by approx. $1.55M of lost revenues and increased expenses. Another, le sser impactful, driver to the budget miss was the transition to a new Golf Operator.
Significant Year to Year changes:
Four (4) key areas impacting Golf Net Operating Income included:
• Golf Course Net Income of $998, 600, missing budget by $877,000, due to increased water costs and fires • Ancillary Net Income of $1.8 million missing budget by $569,000 due to fires and transition to new operator • Operating Expen ses of $1.9 million, missing budget by $663,000 mainly due to fires and insurance costs. • Investment Gains were $459,900 ma inly due to Golf invested cash on hand.
C. Expense Comparison
The RBOC has 5 key areas of operating expenses: Event Expense s, Stadium Over head, Debt Service, Golf Complex Overhead and Golf Course Direct expenses. Many of these expenses have experienced increases due to changes in market demand, driving costs higher than the cost-of-living adjustments (COLA). Key areas of increases include market costs of retaining industry experienced staff, professional and contracted services in areas such as information technology, business development and legal services.
14 Trend line represents high and current point.
FINANCIAL ANALYSIS (Continued)
Stadium Overhead Expenses:
Year to year - Stadium overhead expenses increased by $1.7 million to $12.9 million mainly due to:
• Eaton Fires mainly impacted t he Contracted Services category by $280,000 of the $390,000 Increase. • Salaries and benefits increased by $518,000 in FY 2025: $188,200 due to COLA, $122,700 due to promotions and market adjustments and $207,000 due to Benefits cost increases (note Salaries and benefits were less than Budget by $258,000 due to 4.5 open FTEs during the Fiscal Year). • Annual PERs Valuation was $161, 000 based on adjustment of Cal-Pers policy valuation. • General and Administrative increased by $764,000 mainly due to Contracted Services, Insu rance, Utilities, and Professional Services in Legal, HR, IT and strategic services.
FY 2025 to Budget comparison - Stadium overhead expenses are less than budget by $154,000.
15 Trend line represents high and current point.
FINANCIAL ANALYSIS (Continued)
Golf Complex Overhead:
Year to Year – Golf 2025 Overhead Budget assumed $650,000 of ex penses moved from Complex Overhead to Golf Course expenses, which is why General and administrative expenses were reduced from $1.1 million in 2024 to 2025 budget $557,000. Golf overhead expenses managed to the budget with the miss mainly due to the Eaton fires in contracted service expenses of $650,000.
Golf Course Expense:
Troon Management is contracted to oversee the Golf Course and C omplex operations and expenses. Year to Year expenses increased by $1.3 million mainly due to 2 major occurrences. (1) Salaries and Benefits of $650,000 in prior year were part of Complex expenses (managed by RBOC staff) - ar e now managed by Troon. (2) $650,000 are increases in General and Administrative expenses mainly due to:
DETAILS:
Payroll & Benefits
Salaries & Taxes 190,913 $ 191,443$ 186,753 $ 211,956 $ 225,359 $ 246,730$ 221,645 $ 207,837 $ 67% Benefits 58,465 35,226 35,739 56,407 39,010 52,070 94,941$ 101,521$ 33% Subtotal Payroll & Benefits 249,378$ 226,669$ 222,491$ 268,363$ 264,368$ 298,800$ 316,586$ 309,357$ Annual PERs Valuation Adj 7,167 8,079 (4,653) (180,044) 7,140 12,131 22,797 - General and administrative:
Utilities: Water, gas, power, refuse 167,298$ 173,145$ 163,443$ 215,578$ 199,809$ 230,494$ 601$ -$ 0%
Contracted Services: Admin Support, Plumbing, Electrical, Pest Control, Janitorial, Landscaping, Security, Fleet/Fuel Maintenance, etc..
179,964 192,890 297,778 187,853 267,111 282,923 650,307 17,091 53%
Insurance 3,288 3,224 6,285 7,252 7,956 319,821 447,245 417,141 36% Repair and Maintenance: Elevator, Landscaping,
Equipment, Electricians, Plumbers, HVAC, Locksmith and
City Internal Services (structural maintenance etc)
34,272 39,104 58,427 73,428 47,028 20,383 - 4,709 -
Operating Leases/Rental Expense: Vehicles, Office
Equipment, Storage, etc.. 388 390 1,348 1,168 - 18,776 10,425 5,212 1%
Other: Advertising, dues, permits, banking fees. 30,102 12,754 11,744 38,501 57,449 45,960 53,024 57,025 4% Supplies: Medical, vehicle parts, electrical, plumbing
equipment, general (ie office/postage, reference materials, communications/conferencing)
47,786 31,737 41,737 103,368 85,585 86,698 66,734 55,904 5%
Subtotal Services & Supplies: 538,080$ 495,244$ 607,761$ 664,309$ 709,101$ 1,100,029$ 1,228,336$ 557,082$ 94,974 - - Professional Services: City Legal, HR, IT, Contract Negotiation Support, Staff Development 74,981 42,000 27,000 37,160 44,163 16 Trend line represents high and current point.
Golf Course Expense (Continued)
• Eaton Fire driven contracted services expenses $319,000 • Water rates incre ase $304,000
• Gas, power, phone and refuse rate increases $216,000 • Operating leases increases $17,600
• Lower Leases, supplies and commissions ($210,000)
Event Expenses:
Event mix is one of the key drivers to year-to-year changes to event expenses. For example, Total Event Expenses increased by $3.6 million with only 1 increased displacement event between FY 2024 and FY 2025 – mainly due to the nature of the events. In FY 2025 the Rose Bowl hosted 6 international soccer matches for Club World Cup, which require higher costs than events in FY 2024. Key event expense drivers continue to be security, public safety, parking, janitorial and production costs.
While Club World Cup drives the increases in event expenses, most of the event’s expenses were recoverable and are reflected in the increased cost recovery per displacement event.
17 Trend line represents high and current point.
18 Trend line represents high and current point.
FINANCIAL ANALYSIS (Continued)
Cost recovery as a percentage of t otal event expenses is driven by contract event terms on expenses included in the license fees. Contractually, events cost recoveries have historically fallen in 2 main categories – (1) Client requests not included in the license fee or (2) Shared costs.
RBOC Cost Recovery in FY2025 was $18.4 million with most of the recovery and associated costs due to Displacement events. Displacement events expense recoveries w ill vary between the types of event contracts.
For example, Music Festival events have a cost recovery of 80-90% and events such as concerts, soccer matches and July 4th (Celebrations) average between 20%-40%. FY 2025 average cost recovery as a percentage of total costs per event was:
• Displacement - 56% or an averag e of $815,800 recovery of the $1.45 million per event average cost. • Enterprise events - 63% or an average of $13,700 recovery of t he $21,900 per event average cost. • Flea Market - 75% or an average of $40,500 recovery of the $54,000 per event average cost.
D. Other Non-Operating Revenue & (Expenses):
Total Other Non-Operating revenue of $6.4 million is mostly recurring sources. Recurring sources include Legacy Connections, federal government subsidies on debt service, cell site rental, Tourism Business Improvement District (TBID), Senate Bill 96 and utilities cost recovery contracted to FY 2025. Year-to-Year changes to recurring resources were a reduction of $119,000 (from $5.50 million to $ 5.38 million). Key Drivers were in the TBID first full allocation to the RBOC incre asing by $1.8 million and subsidies decreased by $2.1 million mainly due to refinancing the 2010B bond portion. Other noticeable changes i nclude the 1 st half year of the Senate Bill 96 increasing by $405,000, Legacy contribution was reduced from pr ior year by $200,000, however it is important to note that RBOC received $3.0 million due to State Water line fu nding source and due to grant recognition rules funds are reported on the balance sheet until project spend rea ches substantial completion. Non-Recurring sources increased by $1.68 million due to prior year AGC contract termination costs $680,000 and FY 2025 Troon contribution of $1.0 million.
19 Trend line represents high and current point.
FINANCIAL ANALYSIS (Continued)
20 Trend line represents high and current point.
FINANCIAL ANALYSIS (Continued)
E. Balance Sheet Highlights:
On a full accrual basis, the Net Position decreased by $5.684 million, as outlined by the Statement of Revenue and Expenses (Income Statement) and below Summary Statement of Net Position (Balance Sheet).
Key areas of change in Assets include cash, accounts receivable, capital and debt:
CHANGE IN CASH
Total Unrestricted Cash balances at year end increased by $9.673 million mainly due to:
Stadium cash increased by $12.976 million net of:
• $5.120 million decreased Capital cash,
• $4.468 million increas ed Operating cash mainly due to event performances and interest earnings. • $13.630 million increa sed event deposits
Cash and Investments restricted decreased by $10.153 million mainly due to the restructuring of the 2010B Bonds net of fair market valuation.
Golf Complex cash decreased by $3.303 million net of
• $277,000 increased Capital cash,
• $2,282 million decreased Operating cash mainly due to the impa ct of Eaton Fires and Pro-Shop, Restaurant/Food-Beverage Operations and interest earnings. • $1.272 million decreased Golf Cou rse Cash mainly due to the impact of Eaton Fires.
21 FINANCIAL ANALYSIS (Continued)
Balance Sheet highlights
CHANGE IN CASH
CHANGE IN ACCOUNTS RECEIVABLE:
Accounts Receivables increased by $7.174 million:
• Stadium Accounts Receivables are higher than the prior year b y $7.390 million mainly due to events. o Events increased by $7.371 milli on associated with Q4 billing higher than FY 2024 due to Club World Cup and deposit invoices for upcoming events.
o Non-Events increased by $456,500 mainly due to Senate Bill 96 pending collection of $405,000. o Other Accounts Receivables decreased by $437,900 due to prior year subsidies collected in FY 2024.
• Golf Accounts Receivable decreased by $216,000 mainly due to r eductions in Golf Course Events, Tournament and banquets billing.
• Allowance for Doubtful Accounts increased by $109,900 mainly due to increased premium seating accounts with high risk of collections (Increased doubtful accts $152,000 less accounts written off $42,100). 22 FINANCIAL ANALYSIS (Continued)
Balance Sheet highlights
CHANGE IN ACCOUNTS RECEIVABLE
CHANGE IN CAPITAL ASSETS:
Capital assets decreased by $5.6 million mainly due to $11.5 million in accumulated depreciation offset by activated assets / spend of $5.1 million (Stadium $4.3 million and Golf $813,300). Other Capital expenses in FY2025 include Construction in Progress on the Stadium totaling $704, 300 (South End Zone related $431, 100 and Other Carry forward projects pending asset activation of $273,200).
Lease Assets net of accumulated amortization for GASBs 87 and 9 6 decreased by $1.3 million and Interest Amortization decreased by $233,000 mainly due to a change in GASB methodology for the Stadium and increased Golf Leases of $2.1 million due to a cart lease agreement.
GASB 87 and 96 recognized leases such as Golf Carts, Software(s), Databases, cloud systems backups, copiers, ATM machines, and Security system.
23 FINANCIAL ANALYSIS (Continued)
Balance Sheet highlights
CHANGE IN CAPITAL ASSETS
24 FINANCIAL ANALYSIS (Continued)
Balance Sheet highlights
CHANGE IN DEBT
Outstanding debt increased by $2.4 million during FY 2025 mainly due to:
• 2010B Build America Bond refi nancing $106.7 million to the 2024 Revenue bond • 2016 Revenue Bonds principal payment of $4.7 million
• 2018 Revenue Bonds principal payment of $1.1 million
• 2024 Revenue Bonds increased bonds value of $111.9 million, and increased accretion (i) of $3.1 million
• Stadium Lease/Subsc ription Liability (GASB 87/96 adjustment) decreased by $1.3 million due to changes in GASB methodology and Golf Lease Liability increased by $2.1 million for new cart leases.
(i) Accreted Interest is a discount rate on bonds amortized over the life of the 2010 and 2024 bonds.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the RBOC’s finances. Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to the RBOC Finance Office ([email protected]) , Rose Bowl Operating Company, 1001 Rose Bowl Dr., Pasadena, California 91103.
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26 ROSE BOWL OPERATING COMPANY
Statement of Net Position
June 30, 2025
Assets:
Current:
Cash and investments 34,957,258$ 14,643,867$ 49,601,125$ Accounts receivable, net of allowance of $681,718 for the Rose Bowl 11,672,823 51,857 11,724,680 Lease receivable 6,267,370 - 6,267,370 Inventory 4,591 343,394 347,985 Prepaid items 115,485 2,838 118,323 Total Current Assets 53,017,527 15,041,956 68,059,483 Noncurrent:
Due from City of Pasadena 387,583 - 387,583 Due from Stadium - 5,372,473 5,372,473 Cash and investments, restricted 336,920 - 336,920 Capital assets:
Construction in progress 704,321 - 704,321 Other capital assets, net 126,381,547 7,791,338 134,172,885 Total Noncurrent Assets 127,810,371 13,163,811 140,974,182 Total Assets 180,827,898 28,205,767 209,033,665 Deferred Outflows of Resources:
Deferred refunding charge 16,107,003 - 16,107,003 Outflows related to net pension liability 1,335,068 70,267 1,405,335 Total Deferred Outflows of Resources 17,442,071 70,267 17,512,338 Liabilities:
Current:
Accounts payable and other liabilities 18,170,281 877,336 19,047,617 Accrued salaries and benefits 610,163 40,378 650,541 Interest payable 677,207 - 677,207 Due to Golf Course 5,372,473 - 5,372,473 Due to City of Pasadena 2,323,151 163,366 2,486,517 Deposits 744,516 - 744,516 Unearned revenue 16,307,408 52,673 16,360,081 Current portion of long-term advance 100,000 - 100,000 Current portion compensated absences 293,481 15,225 308,706 Current portion of long-term debt 7,861,246 379,207 8,240,453 Total Current Liabilities 52,459,926 1,528,185 53,988,111 Noncurrent:
Long-term advance 200,000 - 200,000 Compensated absences 183,269 14,463 197,732 Long-term debt, net of current portion 190,273,559 1,713,203 191,986,762 Net pension liability 3,601,365 189,546 3,790,911 Total Noncurrent Liabilities 194,258,193 1,917,212 196,175,405 Total Liabilities 246,718,119 3,445,397 250,163,516 Deferred Inflows of Resources:
Inflows related to lessor leases 6,267,370 - 6,267,370 Inflows related to net pension liability 22,337 1,176 23,513 Total Deferred Inflows of Resources 6,289,707 1,176 6,290,883 Net Position:
Net investment in capital assets (37,502,769) 5,698,928 (31,803,841) Restricted for debt service 336,920 - 336,920 Unrestricted (17,572,008) 19,130,533 1,558,525 Total Net Position (54,737,857)$ 24,829,461$ (29,908,396)$ Rose Bowl Golf Course Total
See Notes to Financial Statements.
27 ROSE BOWL OPERATING COMPANY
Statement of Revenues, Expenses, and Changes in Net Position Changes in Net Position
For the Year Ended June 30, 2025
Operating Revenues:
Green fees and other golf revenues -$ 7,093,543$ 7,093,543$ Golf displacement - 1,442,723 1,442,723 Advertising revenue 3,387,667 - 3,387,667 Facility rentals 26,137,991 - 26,137,991 Concessions 3,592,679 - 3,592,679 Pro shop - 235,600 235,600 Restaurant - 3,255,261 3,255,261 Admission tax 1,190,200 - 1,190,200 Cost recoveries 18,393,872 165,000 18,558,872 Total Operating Revenues 52,702,409 12,192,127 64,894,536 Operating Expenses:
Salaries and benefits 5,650,635 316,586 5,967,221 Annual PERS valuation adjustment 161,013 22,797 183,810 General and administrative 7,041,350 1,228,336 8,269,686 Depreciation/amortization 10,521,799 958,132 11,479,931 Capital preventative maintenance 1,441,100 406,507 1,847,607 Events and parking 32,211,866 405,054 32,616,920 Green fees and other golf expenses - 6,094,938 6,094,938 Restaurant - 2,900,254 2,900,254 Total Operating Expenses 57,027,763 12,332,604 69,360,367 Operating Loss (4,325,354) (140,477) (4,465,831) Nonoperating Revenues (Expenses):
Investment income 1,840,810 459,892 2,300,702 Interest expense (9,704,444) - (9,704,444) Other nonoperating revenues (expenses) 5,386,777 1,000,000 6,386,777 Total Nonoperating Revenues (Expenses) (2,476,857) 1,459,892 (1,016,965) Changes in Net Position (6,802,211) 1,319,415 (5,482,796) Net Position:
Beginning of year, as previously reported (47,740,231) 23,516,156 (24,224,075) Restatement-change in accounting principle (195,415) (6,110) (201,525) Beginning of Fiscal Year, as restated (47,935,646) 23,510,046 (24,425,600) End of Year (54,737,857)$ 24,829,461$ (29,908,396)$ Rose Bowl TotalGolf Course
See Notes to Financial Statements.
28 ROSE BOWL OPERATING COMPANY
Statement of Cash Flows
For the year ended June 30, 2025
Cash Flows from Operating Activities:
Cash received from customers 1,530,083$ 144,790$ 1,674,873$ Cash paid to employees for services (5,409,530) (358,267) (5,767,797) Cash paid to suppliers for goods and services (27,403,721) (10,418,217) (37,821,938) Other cash receipts 52,702,409 10,348,804 63,051,213 Net Cash Provided by Operating Activities 21,419,241 (282,890) 21,136,351 Cash Flows from Non-Capital
Financing Activities:
Repayments from other funds 3,173,344 - 3,173,344 Repayment made to other funds - (3,173,344) (3,173,344) Other nonoperating revenues 6,710,553 11,254 6,721,807 Net Cash Provided (Used) by Non-Capital Financing Activities 9,883,897 (3,162,090) 6,721,807 Cash Flows from Capital and Related Financing Activities:
Proceeds from capital debt 114,071,913 - 114,071,913 Acquisition of capital assets (5,049,900) (813,263) (5,863,163) Capital grants and contributions - 1,000,000 1,000,000 Interest subsidy on bonds payable (25,085,057) - (25,085,057) Principal payments on long-term debt (114,156,468) (271,949) (114,428,417) Net Cash Used in Capital and Related Financing Activities (30,219,512) (85,212) (30,304,724) Cash Flows from Investing Activities:
Leasing activities 244,206 - 244,206 Investment gain (loss) 1,495,187 226,881 1,722,068 Net Cash Provided by Investing Activities 1,739,393 226,881 1,966,274 Net Increase (Decrease) in Cash and Cash Equivalents 2,823,019 (3,303,311) (480,292) Cash and Cash Equivalents at Beginning of Year 32,471,159 17,947,178 50,418,337 Cash and Cash Equivalents at End of Year 35,294,178$ 14,643,867$ 49,938,045$ Cash and investments 34,957,258$ 14,643,867$ 49,601,125$ Cash and investments, restricted 336,920 - 336,920 Total reported on Statement of Net Position 35,294,178 14,643,867 49,938,045 Cash and cash equivalents at end of year 35,294,178$ 14,643,867$ 49,938,045$ Operating Loss (4,325,354)$ (140,477)$ (4,465,831)$ Adjustments to Reconcile Operating Loss to
Net Cash Provided by Operating Activities:
Depreciation/amortization 10,521,799 958,132 11,479,931 (Increase) decrease in accounts receivable (7,390,215) 216,142 (7,174,073) (Increase) decrease in inventory 893 (74,496) (73,603) (Increase) decrease in prepaid assets 36,325 10,711 47,036 Increase (decrease) in accounts payable and accrued expenses 13,253,377 (1,162,666) 12,090,711 Increase (decrease) in accrued salaries and benefits 49,522 (52,073) (2,551) Increase (decrease) in deposits
8,920,298 (71,352) 8,848,946 Increase (decrease) in compensated absences 191,583 10,391 201,974 Increase (decrease) in net pension liability 161,013 22,798 183,811 Net Cash Provided by Operating Activities 21,419,241$ (282,890)$ 21,136,351$ Non-Cash Investing, Capital, and Financing Activities:
Accretion of interest on bonds payable (1,928,806)$ -$ (1,928,806)$ Amortization of deferred charge and bond discounts/premiums (1,150,684) - (1,150,684) Deferred charges on issuance of new bonds (16,770,769) - (16,770,769) Rose Bowl TotalGolf Course
Reconciliation of Cash and Investments to
Amounts Reported on the Statement of Net
Reconciliation of Operating Loss to Net Cash
Provided by Operating Activities:
See Notes to Financial Statements.
29 7+,63$*(,17(17,21$//</()7%/$1.
30 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
I. Basis of Presentation
The Rose Bowl Operating Company (the Company) was incorporated on January 18, 1994, as a legally separate entity with the primary purpose of returning economic and civic value to the City of Pasadena, California, (the City) by managing a world class stadium and a professional quality golf course complex, Brookside Municipal Golf Course (the Golf Course), in a residential open-space environment. A f ourteen-member Board of Directors governs the Company. The Board of Directors consists of the City Manage r, two members from the City Mayor’s office, seven members appointed by the City, one member from the Pasade na Tournament of Roses Foundation (a separate not-for-profit entity unrelated either to the City or the Company), one member from the University of California, Los Angeles (UCLA), one member from the joint City Council, and one non-voting member from the Pasadena Center Operating Company. These operations co nstitute part of the overall financial reporting entity of the City and are accounted for as a discretely presented component unit in the City’s Annual Comprehensive Financial Report consistent with accounting principles generall y accepted in the United States of America.
Revenues and expenses of the Company include direct revenues an d expenses and certain allocations from the City.
II. Basis of Accounting
The Company is accounted for as an enterprise fund (proprietary fund type). A fund is an accounting entity with a self-balancing set of accounts established to record the financ ial position and results of operations of a specific governmental activity. The activities of enterprise funds close ly resemble those of ongoing businesses in which the purpose is to conserve and add to basic resources while meeting operating expenses from current revenues.
Enterprise funds account for operations that provide services o n a continuous basis and are substantially financed by revenues derived from user charges. The Com pany utilizes the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized as they are incurred.
III. Classification of Revenues
Operating revenues consist of charges to customers for sales and use of the facilities. Nonoperating revenues consist of investment earnings and other nonoperating income. Capital c ontributions consist of contributed capital assets.
IV. Capital Assets
Capital assets are recorded at cost and are depreciated over th e estimated useful life of the asset using the straight-line method of depreciation. The Company capitalizes all assets with a historical cost of at least $10,000 consistent with City practice. The cost of normal maint enance and reports that do not add value to the assets or materially extend asset lives are not capitalized. In terest is capitalized on construction in progress in accordance with Governmental Accounting Standards
. Accordingly, interest capitalized is the total interest cost from the date of the borrowing net of any interest earned on te mporary investments of the proceeds of those borrowings until the specified asset is ready for its intended use.
The estimated useful lives of the assets are as follows:
V. Lease/Subscription Assets
Lease/subscription assets are reported in the applicable enterp rise fund column in the financial statements. Such assets are recorded at the present value of the lease/subscription liability, including expenses to place the asset into service, and are amortized over the lesser of the lease/subscription term or the asset’s useful life.
Building and improvements 1-55 years
Improvements other than building 1-95 years
Machinery and equipment 1-93 years
Leases and subscriptions
Lesser of useful life of the asset
or length of the contract
31 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) VI. Cash and Investments
For the purposes of the statement of cash flows, investments are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates, and have an original maturity date of three months or less.
VII. Investments
Investments are reported in the accompanying statements at fair value, except for certain certificates of deposit and investment contracts that are reported at cost because they are not transferable, and they have terms that are not affected by changes in market interest rates. Changes in fa ir value that occur during the fiscal year are recognized as investment earnings reported for that fiscal year.
Investment earnings includes interest earnings, changes in fair value, and any gain s or losses realized upon the liquidation or sale of investments.
VIII. Compensated Absences
Only full-time employees accrue vacation. Vacation time is accrued two to four weeks per year, depending on how long an employee has been with the Company. The Company also gr ants employees personal paid time off.
Regular full-time and part-time (24 hours per week minimum) emp loyees are eligible to accrue personal time off with pay. Full-time employees may accrue up to 20 personal days per calendar year. Part-time employees who work 24 hours per week or more are eligible to accrue personal paid time off on a pro rata basis. It is the Company’s policy to permit employees to accumulate earned but unused vacation benefits from year to year up to a maximum of two times a full-time employee’s annual vacation amount. Per sonal paid time off is not accumulated from year to year. All accumulated compensated absences are recorded as an expense and a liability at the time the benefit is earned.
IX. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement elemen t, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The Company has two items that qualify for reporting in this category:
1. The deferred outflows relating to the net pension liability reported in the statement of net position. These outflows are the results of cont ributions made after the measur ement period, which are expensed in the following year, the net difference between projected and actual earnings on pension plan investments, differences between expected and actual experience, adjustments due to differences in proportions, and difference in proportionate share.
2. The deferred charge on refunding results in the difference i n the carrying value of refunded debt and its reacquisition price. The amount is deferred and amortized over the life of the refunded or refunding debt.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) an d so will not be recognized as an inflow of resources (revenue) until that time. The Company has two items that qualify for reporting in this category. These items related to the deferred inflows for net pension liability and leases, r eported in the statement of net position for business-type activities.
32 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) X. Use of Estimates
The preparation of financial st atements in conformity with acco unting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent ass ets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
XI. Net Position
Sometimes the Company will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.
l. New GASB Pronouncements Effective during Fiscal Year
The following Government Accounting Standards Board (GASB) pronouncement was effective for and implemented for the fiscal year ended June 30, 2025:
1. GASB Statement No. 101, Compensated Absences
The requirements of this Statement will improve financial reporting by implementing a unified recognition and measurement model that will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. Establishing the unified model will result in consistent application to any type of compensated absence and will e liminate potential comparability issues between governments that offer different types of leave. This Statement will also result in a more robus t estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences.
2. GASB Statement No. 102, Certain Risk Disclosures
The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition. The Company’s financial statements were not impacted by the implementation of this Statement.
NOTE 2: CASH AND INVESTMENTS
Cash and Investments as of June 30, 2025, are classified in the accompanying financial statements as follows:
Statement of net position:
Cash and inv estments 49,601,125 $
Cash and inv estments restricted 336,920
Total cash and inv estments 49,938,045 $
33 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Cash and investments as of June 30, 2025, consist of the following:
Investments Authorized by the California Government Code and th e Company’s Investment Policy
The table below identifies the investment types that are authorized for the Company by the California Government Code and the Company’s investment policy. The table also identifies certain provisions of the California Government Code (or the Company’s investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the Compan y, rather than the general provisions of the California Government Code or th e Company’s investment policy.
*Based on state law requirements or investment policy requirements, whichever is more restrictive.
Cash on hand 2,963$
Deposits with financial institutions 5,664,597
City of Pasadena Inv estment Pool 44,270,485
Total cash and inv estments 49,938,045$
Local Agency Bonds Yes 5 years None None
U.S. Treasury Obligations Yes 5 years None None
U.S. Agency Securities Yes 5 years None None
Bankers' Acceptances Yes 180 days 40% 30%
Commercial Paper Yes 270 days 25% 10%
Negotiable Certificates of Deposit Yes 5 years 30% None Repurchase Agreements Yes 1 year None None
Reverse Repurchase Agreements Yes 92 days 20% None
Medium-Term Notes Yes 5 years 30% None
Mutual Funds Yes N/A 20% 10%
Money Market Mutual Funds Yes N/A 20% 10%
Mortgage Pass-Through Securities Yes 5 years 20% None
County Pooled Investment Funds Yes N/A None None
Local Agency Investment Fund Yes N/A None None
Joint Power Agency Pools (other investment pools) Yes N/A None None Inv estment Types Authorized by State Law
Authorized by
Investment
Policy
*Maximum
Maturity
*Maximum
Percentage of
Portfolio
*Maximum
Inv estment in
One Issuer
34 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Company’s investment policy. The table below identifies the investment types that are authorized for investm ents held by bond trustee. The table also identifies certain provisions of these debt agreements that address intere st rate risk and concentration of credit risk.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Company manages its ex posure 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 sensitivity of the fair values of the Com pany’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the Company’s investments by maturity:
Authorized Inv estment Type Maximum Maturity
Minimum
Rating
U.S. Treasury Obligations None N/A
U.S. Agency Securities None N/A
State and Local Agency Bonds None Aa
Bankers' Acceptances 360 days Aa
Commercial Paper 270 days Aa
Negotiable Certificates of Deposit None Aa
Repurchase Agreements None Aa
Money Market Mutual Funds N/A Aaa
Investments Contracts None Aa
Remaining
Maturity
12 Months or
Less
City of Pasadena Investment Pool 44,270,485$ 44, 270,485$ Total 44,270,485 $ 44, 270,485$
Inv estment Type
35 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investm ent will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the Company’s investment policy, or debt agreements, and the ac tual rating as of year-end for each investment type.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository f inancial 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. T he 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 g overnment 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 Company’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other tha n the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool he ld by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure Company deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
Fair Value Hierarchy
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. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are quoted prices for similar assets in active markets; Level 3 inputs are significant unobservable inputs.
The Company has the following recurring fair value measurements as of June 30, 2025:
Investments in the C investment pool are valued by the underlying assets in the investment pool. The underlying assets include Local Agency Investment Funds, money market funds, municipal bonds, federal agency issues, treasury securities, corporate bonds and supranational, all of which are level 2 or better.
Ratings at End
of Year
Minimum
Legal
Rating Not Rated
City of Pasadena Investment Pool 44,270,485$ N/A 44,270,485 $ Total 44,270,485 $ 44,270,485 $
Inv estment Type
Level
Inv estment Type Totals 2
City of Pasadena Inv estment Pool 44,270,485 $ 44,270,485 $ Total 44,270,485 $ 44,270,485 $
36 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CAPITAL ASSETS
Rose Bowl
Capital Assets activity for the year ended June 30, 2025, is as follows:
*During the current fiscal year, the Company removed previously recorded subscription assets from capital assets.
This adjustment was necessary to align with GASB 96 guidance.
Depreciation and amortization expense for the year was $10,521,799.
Balance Balance
June 30, 2024 Adjustments Additions Deletions June 30, 2025 Business-type activities:
Capital assets, not being depreciated/amortized
Construction-in-progress -$ -$ 704,321$ -$ 704,321$ Total capital assets, not being depreciated/amortized - - 704,321 - 704,321 Capital assets, being depreciated/amortized
Buildings 209,293,638 - 4,292 - 209,297,930 Improvements other than buildings 50,013,957 - 2,054,986 - 52,068,943 Machinery, equipment, and vehicles 19,205,370 - 2,229,017 - 21,434,387 Lease assets - equipment 97,084 - 57,284 (77,638) 76,730 Subscription assets 1,705,566 (1,705,566) - - - Total capital assets, being depreciated/amortized 280,315,615 (1,705,566) 4,345,579 (77,638) 282,877,990 Less accumulated depreciation/amortization
Buildings (84,118,033) - (7,329,676) - (91,447,709) Improvements other than buildings (44,145,366) - (2,003,855) - (46,149,221) Machinery, equipment, and vehicles (17,708,636) - (1,176,434) - (18,885,070) Lease assets - equipment (80,247) - (11,834) 77,638 (14,443) Subscription assets (322,502) 322,502 - - - Total accumulated depreciation/amortization (146,374,784) 322,502 (10,521,799) 77,638 (156,496,443) Total capital assets, being depreciated/amortized, net 133,940,831 (1,383,064) (6,176,220) - 126,381,547 Total business-type activities capital assets 133,940,831$ (1,383,064)$ (5,471,899)$ -$ 127,085,868$ 37 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CAPITAL ASSETS (CONTINUED)
Golf Course
Capital asset activity for the year ended June 30, 2025, is as follows:
Depreciation and amortization expense for the year was $958,132.
NOTE 4: LEASES
Balance Balance
June 30, 2024 Adjustments Additions Deletions June 30, 2025 Business-type activ ities:
Capital assets, being depreciated/amortized
Buildings 1,638,524$ - -$ -$ 1,638,524$ Improvements other than buildings 13,278,178 - 813,263 - 14,091,441 Machinery and equipment 1,634,532 - - - 1,634,532 Right-to-use lease assets - equipment - - 2,125,343 - 2,125,343 Total capital assets, being depreciated/amortized 16,551,234 - 2,938,606 - 19,489,840 Less accumulated depreciation/amortization
Buildings (1,261,555) - (43,832) - (1,305,387) Improvements other than buildings (8,380,394) - (792,925) - (9,173,319) Machinery and equipment (1,098,421) - (102,054) - (1,200,475) Right-to-use lease assets - equipment - (19,321) - (19,321) Total accumulated depreciation/amortization (10,740,370) - (958,132) - (11,698,502) Total capital assets, being depreciated/amortized, net 5,810,864 - 1,980,474 - 7,791,338 Total business-type activities capital assets 5,810,864$ -$ 1,980,474$ -$ 7,791,338$ Lease Asset
Value
Accumulated
Amortization
Equipment 2,202,073$ 33,764$
Total Leases 2,202,073$ 33,764$
As of Fiscal Year-End
Asset Class
Principal
Payments
Interest
Payments Total Payments
395,453$ 16,434 $ 411,887$
396,810 13,093 409,903
398,121 9,797 407,918
401,440 6,479 407,919
398,406 3,144 401,550
164,319 341 164,660
2,154,549$ 49,288$ 2,203,837$ Total
Fiscal Year
Business-Type Activ ities
2031
2027
2026
2028
2029
2030
38 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 4: LEASES ARRANGEMENTS (CONTINUED)
As of June 30, 2025, the Company had 8 active leases. The leases have payments that range from $354 to $32,932 and interest rates that range from 0.3150% to 0.8400%. As of June 30, 2025, the total combined value of the lease liability is $2,154,549, the total combined value of the short-term lease liability is $395,453. The combined value of the right to use asset, as of June 30, 2025 of $2,202,073 with accumulated amortization of $33,764 is included within the Lease Class activities table found below. The leases had $0 of Variable Payments and $0 of Other Payments, not included in the Lease Liability, within the Fiscal Year.
NOTE 5: LONG-TERM DEBT
Rose Bowl
Long-Term liabilities for the year ended June 30, 2025, are as follows:
Balance at
June 30, 2024
Additions/
Accretions
Deletions/
Amortizations
Balance at
June 30, 2025 Due in One Year
2010A Tax-Exempt Lease
Revenue Bonds:
Capital Appreciation Bonds 28,362,508$ 1,928,806 $ - $ 30,291,314$ - $ 2010B Taxable Build America
Lease Revenue Bonds 106,660,000 - (106,660,000) - - 2010D Taxable Recovery
Zone Economic Development
Lease Revenue Bonds 7,400,000 - - 7,400,000 - 2016A Tax-Exempt Lease
Revenue Bonds 13,320,000 - (4,705,000) 8,615,000 5, 130,000 2016A Bond Premium 1,513,057 - (550,202) 962,855 - 2018A Tax-Exempt Lease
Revenue Bonds 30,585,000 - - 30,585,000 - 2018B Taxable Lease
Revenue Bonds 4,720,000 - (915,000) 3,805,000 1, 165,000 2018A Bond Premium 3,513,450 - (184,919) 3,328,531 - 2018B Bond Discount (26,383) - 6,596 (19,787) - 2024 Taxable Lease Revenue
Refunding Bonds - 104,203,942 (545,000) 103,658,942 1, 550,000 2024 Bond Premium - 9,867,971 (422,159) 9,445,812 - Subtotal - Bonded Long-Term
Liabilities 196,047,632 116,000,719 (113,975,684) 198,072,667 7, 845,000 Lease Liability 17,809 57,285 (12,956) 62,138 16,246 Subscription Liability 1,318,512 - (1,318,512) - -
Total Long-Term Liabilities 197,383,953$ 116,058,004$ (115,307,152)$ 198,134,805$ 7,861,246$ 39 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 5: LONG-TERM DEBT (CONTINUED)
2010 Rose Bowl Lease Revenue Bonds
On November 18, 2010, the City of Pasadena issued four series of lease revenue bonds, Series 2010A through D (Rose Bowl Renovation Project) in the aggregate amount of $155, 873,265. Series A in the amount of $36,808,265 contained $25,220,000 of current interest bonds mat uring between fiscal year 2019-2020 and fiscal year 2026-2027, with the remaining $11,588,265 in the form of c apital appreciation bonds maturing serially from fiscal year 2026-2027 to 2032-2033. Series B contained $106,660 ,000 of taxable Build America Bonds. These bonds are in two coupons, the initial series maturing during fi scal year 2033-2034 and the final maturing during fiscal year 2042-2043. Series C contained $5,005,000 of taxable bonds. These bonds matured serially from fiscal year 2014-2015 to fiscal year 2019-2020. Finally, Series D contained $7,400,000 of taxable Recovery Zone Economic Development Bonds that have one maturity during fiscal year 2042-2043. The bonds, except for the capital appreciation bonds in Series 2010A, commenced interest payments on March 1, 2011, and are payable semiannually. The Company received $154,878,301 of the proceeds from the bonds. The bonds were issued to finance improvements to the Rose Bowl Stadium, to fund capitali zed interest on a portion of the 2010 Bonds, to fund a Bond Reserve Fund, and to pay the costs of issuance of t he 2010 Bonds. Renovations of the existing Rose Bowl Stadium are proposed to continue to allow use by the UCLA Bruins football team, the Rose Bowl Game, Bowl Championship Series (BCS) games, soccer matches, concerts, and special events as well as to bring certain building systems up to current City Building Code requirements and improve public safety.
The 2010A bonds were partially refunded during the year ended June 30, 2017 with the 2016A bonds.
The 2010B bonds were issued for purposes of the American Recove ry and Reinvestment Act of 2009 signed into law on February 17, 2009 (the Recovery Act). Pursuant to the Re covery Act, the City expects to receive a cash subsidy payment from the United States Treasury equal to 35% of the interest payable by the City on or about each interest payment date. The cash payment does not constitut e a full faith and credit guarantee of the United States Government but is required to be paid by the Trea sury under the Recovery Act. Any cash subsidy payments received by the City do not constitute revenues that c an offset interest expense and are not pledged under the indenture to secure the 2010 bonds.
The 2010D bonds were issued for purposes of the Recovery Act. Pursuant to the Recovery Act, the City expects to receive a cash subsidy payment from the United States Treasury equal to 45% of the interest payable by the City on or about each interest payment date. The cash payment does not constitute a full faith and credit guarantee of the United States Government but is required to be paid by the Trea sury under the Recovery Act. Any cash subsidy payments received by the City do not constitute revenues that can offset interest expense and are not pledged under the indenture to secure the 2010 bonds.
For the year ended June 30, 2025, the Treasury made subsidy pay ments totaling $1,387,306 towards the interest due on the 2010B and 201D bonds which has been included in other nonoperating revenues.
The total annual debt service requirements for the 2010 Lease R evenue Bonds including accretion as of June 30, 2025, are as follows:
June 30 Series A Series D Interest Total
2026 -$ -$ 528,952$ 528,952$ 2027 748,040 - 1,875,912 2,623,952 2028 2,063,438 - 4,715,515 6,778,953 2029 1,990,426 - 5,058,526 7,048,952 2030 1,895,441 - 5,358,511 7,253,952 2031-2035 4,890,920 - 18,088,840 22,979,760 2036-2040 - - 2,644,760 2,644,760 2041-2043 - 7,400,000 1,586,856 8,986,856 Total 11,588,265$ 7,400,000$ 39,857,872$ 58,846,137$ *Does not include accreted interest of $18,703,049
Principal Payments
40 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 5: LONG-TERM DEBT (CONTINUED)
Disclosure Related to Long-Term Debt Under GASB 88
In case of default, the following is the course of action:
(a) Upon the happening of any of the events & default, then it shall be lawful for the Authority or its assignee, subject to the terms of the Lease, with the consent of the Majority Holder, to (i) exercise any and all remedies available or granted to it under the Sublease or pursuant to law, to the extent not inconsistent with the remedies granted under the Sublease or (ii) by mandamus or other suit, action or proceeding at law or in equity to enforce the Authority’s or its assignee’s rights against the City and to compel the City to perform and carry out its duties and obligations under the law and its covenants and agreements with the City as provi ded in the Sublease. Upon the breach of any agreement, condition, covenant or term contained in the Subleas e 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 wheth er 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 th e sublease by the city to accelerate the rental payments. terminate the sublease or re-enter the leased property.
2016 Rose Bowl Lease Revenue Bonds
On September 20, 2016, the City issued a 2016 Lease Revenue Bond, Series 2016A in the aggregate amount of $27,642,127. The bond was issued to refund a portion of the 201 0 Lease Revenue Series A Bond. Series 2016A contained $23,385,000 of refunding bonds for the 2010 Lease Revenue Series A Bond.
Principal is payable in annual installments ranging from $1,980,000 to $5,130,000 commencing April 1, 2022, and ending April 1, 2027.
The balance outstanding at June 30, 2025 is comprised of the pr incipal amount of $8,615,000, plus unamortized deferred bond premium of $962,855, for a total of $9,577,855.
The annual debt service requirements for the 2016 Lease Revenue Bond as of June 30, 2025, is as follows:
2018 Rose Bowl Lease Revenue Bonds
On November 14, 2018, the City issued two 2018 Lease Revenue Bo nds (Rose Bowl Renovation Project), Series 2018A and 2018B in the aggregate amount of $43,100,000. The 2018 bonds were issued to defease and refund all the 2013 Lease Revenue Bonds (Rose Bowl Renovation P roject) and pay costs of issuance of the 2018 bonds.
The Series 2018A balance outstanding at June 30, 2025 is comprised of the principal amount of $30,585,000, plus unamortized deferred bond premium of $3,328,531, for a total of $33,913,531.
The Series 2018B balance outstanding at June 30, 2025 is compri sed of the principal amount of $3,805,000, plus unamortized deferred bond discount of ($19,787), for a total of $3,785,213.
June 30, Principal Interest Total
2026 5,130,000$ 430,750$ 5,560,750$
2027 3,485,000 174,250 3,659,250
Total 8,615,000$ 605,000$ 9,220,000$
41 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 5: LONG-TERM DEBT (CONTINUED)
The annual debt service requirements for the 2018 Lease Revenue Bonds as of June 30, 2025, are as follows:
2024 Rose Bowl Lease Revenue Refunding Bonds
On November 13, 2024, the City issued 2024 Lease Revenue Refund ing Bonds (Rose Bowl Renovation Project), Series 2024 in the amount of $103,061,977. The 2024 bonds were issued to defease and refund all the 2010 Build America Bond and pay costs of issuance of the 2024 bonds.
The Series 2024 balance outstanding at June 30, 2025 is comprised of the principal amount of $102,516,977, plus unamortized deferred bond premium of $9,445,812, for a total of $111,962,789.
Pledge of Stadium Revenues
In accordance with the financing plan approved by the City Coun cil of the City of Pasadena in October 2010, the Company has pledged net revenues before reserves to secure repayment of the aforementioned bonds. Proceeds from the bonds provided financing for the Rose Bowl Renovation project. The bonds are payable from net revenues and are payable through maturity. In the event of any bond defa ult, the City is the sole obligor for all debt service repayments. Annual principal and interest payments on the bonds are expected to require less than 67% of net revenues. The total principal and interest remaining to be paid is $313,798,276. During fiscal year 2024-2025, the City refinanced the 2010B bond to the 2025A refunding Lease Rev enue Bonds (Rose Bowl project) for $106,660,000 for the principal value.
June 30 Series A Series B Interest Total
2026 -$ 1,165,000$ 1,642,038$ 2,807,038$ 2027 - 1,425,000 1,596,713 3,021,713 2028 170,000 1,215,000 1,546,263 2,931,263 2029 1,555,000 - 1,481,875 3,036,875 2030 1,610,000 - 1,402,750 3,012,750 2031-2035 8,975,000 - 5,723,125 14,698,125 2036-2040 10,785,000 - 3,259,125 14,044,125 2041-2043 7,490,000 - 570,750 8,060,750 Total 30,585,000$ 3,805,000$ 17,222,639$ 51,612,639$ Principal Payments
June 30 Principal Interest Total
2026 1,550,000$ 3,056,000$ 4,606,000$
2027 1,420,000 2,978,500 4,398,500
2028 1,085,000 2,907,500 3,992,500
2029 760,000 2,853,250 3,613,250
2030 620,000 2,815,250 3,435,250
2031-2035 17,530,000 13,298,250 30,828,250
2036-2040 42,597,751 9,217,999 51,815,750
2041-2045 22,498,516 28,506,484 51,005,000
2046-2048 14,455,710 25,969,290 40,425,000
Total 102,516,977$ 91,602,523$ 194,119,500$
*Does not include accreted interest of $1,141,965
42 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 5: LONG-TERM DEBT (CONTINUED)
Golf Equipment Finance
On June 15, 2018, the Company entered into an agreement with American Golf Corporation to finance $776,530 worth of golf equipment to be paid over a 15-year period at $51,770 per year. There is no interest charged on this purchase. During the year ended June 30, 2025, prior to the issuance of these financial statements, the Company paid the remaining balance of the finance agreement.
Compensated Absences
Compensated absences for the year ended June 30, 2025, are as follows:
NOTE 6: NET POSITION
Net position for the Rose Bowl Stadium at June 30, 2025, consisted of the following:
Balance at
June 30, 2024
Additions/
Accretions
Deletions/
Amortizations
Balance at
June 30, 2025
Due in One
Year
Financed Purchase 465,917$ - $ 465,917$ - $ - $ Lease liability - 2,125,343 32,932 2,092,411 379,207 Total Long-Term Liabilities 465,917$ 2,125,343 $ 498,849 $ 2,092,411 $ 379,207 $ Balance at
June 30, 2024 Net change
Balance at
June 30, 2025
Due in One
Year
Rose Bowl 285,167 $ 191,583 $ 476,750 $ 293,481 $ Golf Course 19,297 10,391 29,688 15,225 304,464$ 201,974 $ 506,438 $ 308,706 $ Net inv estment in capital assets:
Property, plant and equipment, net 127,085,868$
Less:
Net carrying value of capital-related debt (164,009,943) Accounts payable on capital assets (578,694)
Total net investment in capital assets (37,502,769)
Restricted for debt service 336,920
Unrestricted net deficit (17,572,008)
Total net position (54,737,857) $
43 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 6: NET POSITION (CONTINUED)
Net position for the Golf Course at June 30, 2025, consisted of the following:
NOTE 7: DEFINED BE NEFIT PENSION PLAN
Miscellaneous Plan:
Description of Plan
The Rose Bowl Operat ing Company Miscella neous Plan and PEPRA Pl an (the Plans), are cost-sharing multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). All qualified permanent and probationary empl oyees are eligible to participate in the Company’s Miscellaneous Plan. Benefit provisions under the Plan s are established by State statue and the Company’s Board of Directors.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five ye a r s o f t o t a l s e r v i c e a r e e l i g i b l e t o r e t i r e a t age 50 with statutorily reduced benefits. All members are eligi ble for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The Basic D eath Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Public Employees’ Pension Reform Act of 2013 (PEPRA) requires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. These PEPRA members in pooled plans are reflected in the new Miscellaneous and Safety risk pools cr eated by the CalPERS Board in response to the passage of PEPRA, beginning with the June 30, 2013, risk-pool valuations. The PEPRA Plan of the Company went into effect during the measurement period ending June 30, 2014.
Net inv estment in capital assets:
Property, plant and equipment, net 7,791,338$
Net carrying value of capital-related debt (2,092,410)
Total net inv estment in capital assets 5,698,928
Unrestricted net deficit 19,130,533
Total net position 24,829,461$
44 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 7: DEFINED BENEFIT PENSION PLAN (CONTINUED)
The Plans provisions and benefits in effect at June 30, 2025, are summarized as follows:
Contribution Description:
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Miscellaneous Plan are determined annually on an actuarial basis as of June 30 by CalPERS. 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. Th e Company is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2025, the contributions recognized as a reduction to the net pension liability were $621,165.
Pension Liabilities (Assets), Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension
As of June 30, 2025, the Company reported a net pension liabili ty for its proportionate share of the net pension liability of each Plan of $3,790,911.
The Company’s net pension liability (asset) for the Plans is measured as the proportionate share of the net pension liability. The net pension liability (asset) of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability (asset) was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The Company’s proportion of the net pension liability was based on a projection of the Company’s long-term share of contributions to the pension plans relative to the projected contributions of all participat ing employers, actuarially determined. The Company’s proportionate share of the net pension liability for the Plans as of June 30, 2023 and 2024, was as follows:
Miscellaneous*
PEPRA
Miscellaneous
Hire date
Prior to
January 1, 2013
January 1, 2013
and after
Benefit formula 2.5% @ 55 2% @ 62
Benefit v esting schedule 5 years of serv ice 5 years of serv ice Benefit payments monthly for life monthly for life
Retirement age 50 and up 52 and up
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 1. 0% to 2.5% Required employee contribution rates 8.00% 6.75%
Required employer contribution rates 12.21% 7.47%
Required employer unfunded liability payment $322,519 $5,500 * Closed to new entrants
Miscellaneous
Proportion - June 30, 2023 0.07863%
Proportion - June 30, 2024 0.07838%
Change - Increase (Decrease) -0.00025%
45 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 7: DEFINED BENEFIT PENSION PLAN (CONTINUED)
For the year ended June 30, 2025, the Company recognized pensio n expense of $947,216 for the Plans. At June 30, 2025, the Company reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:
The $685,640 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Actuarial Assumptions
For the measurement period ended June 30, 2024 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2023, total pension liability. The June 30, 2023 and the June 30, 2024, total pension liabilities were based on the following actuarial methods and assumptions:
All other actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including up dates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website.
Deferred Outflows of
Resources
Deferred Inflows
of Resources
Pension contributions subsequent to measurement date 685,640$ -$ Differences between expected and actual experiences 335,079 13,075 Change in assumptions 99,610 -
Net differences between projected and actual earnings on pension plan investments 223,112 -
Adjustment due to difference in proportions 43,771 3,969 Differences between actual contributions and the
proportionate share of contributions 18,123 6,469 Total 1,405,335$ 23,513$
For the Fiscal Year
Ending June 30,
Recognized Deferred
Outflows (Inflows) of
Resources
2026 275,686$
2027 491,949
2028 5,005
2029 (76,458)
Total 696,182$
2025
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial assumptions
Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.75%
Projected Salary Increase 2.3% depending on Age, Service, and Type of Employment Inv estment Rate of Return 7.00% net of pension plan inv estment e xpenses, includes inflation Mortality Derived using CalPERS' Membership Data for all Funds 46 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 7: DEFINED BENEFIT PENSION PLAN (CONTINUED)
Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of
6.90 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testi ng Report” that can be obtained at CalPERS’ website under the GASB 68 section.
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 best-estimate ranges of 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 expe cted rate of return, CalPERS t ook into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach.
Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benef its for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.
Asset Class
Assumed
Asset
Allocation
Real
Return
Years 1 -
10 (a,b)
Global Equity- cap-weighed 30.00% 4.54%
Global Equity non-cap-weighed 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Infrastructure and Forestland 0.00% 0.00%
Inv estment Grade Corporates 10.00% 1.56%
High Yield 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%
Total 100.00%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2022 Asset Liability Management st udy 47 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 7: DEFINED BENEFIT PENSION PLAN (CONTINUED)
Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate
The following presents the net pension liability (asset) 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 (asset) would be if it were calculated using a discount rate that is 1 percent age-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
NOTE 8: ADVANCE
During the year ended June 30, 2018, the Company signed an agreement with Levy Premium Food Service to buy out the contract of SodexoMagic. T his agreement provided the co mpany an advance of $1,000,000 to purchase capital improvements. The Company must reimburse the vendor $100,000 per year over 10 years expiring on June 30, 2028. The total amount due at June 30, 2025 was $300,000. Any unpaid or unrecouped portion of the advance shall be reimbursed to Levy Premium Food Service as a p recondition to the effectiveness of termination of the agreement for any reason.
NOTE 9: SELF-INS URANCE PROGRAM
The Company is entitled to indemnity from the City, and its los ses are included in the City’s general liability self-insurance program and under the excess general liability policies. RBOC carries statutory workers’ compensation insurance with no retention. Tenants of the Rose Bowl provide insurance, naming the City of Pasadena as additional insured on their policies. See the City of Pasadena’s financial statements for further details.
NOTE 10: GOLF COURSE MANAGEMENT AGREEMENT
The Golf Course is operated and maintained by Troon Golf L.L.C. (Troon) under the terms of an agreement, effective July 1 2024, and expires on June 30, 2034. The agreement entitl es Troon to a base management fee of $425,000 per year and is subject to a two- and one-half percent (2.5%) increase each year for each ensuing operating year. In addition, Troon shall be entitled to an annual incentive management fee in each operating year.
The Incentive Management Fee shall be equal to fifteen percent (15%) of the Net Operating Income of the Facility, excluding the Family Golf Venue Gross Revenues, in excess of budget for the applicable Fiscal Year.
NOTE 11: RELATED PARTY TRANSACTIONS
During the current year, the Company incurred charges for the u se of the City's building maintenance (electricians, plumbers), locksmiths, printing, and mail servic es. These nonevent expenses total $2,608,791 and are included in general and administrative expenses. During the current year, the Company also paid the City for police, fire, and public works services, primarily for events, amounting to $4,824,492 and Golf utilities and services totaling $1,844,621. At June 30, 2025, amounts payable to the City totaled $2,486,516.
During the current year, the Company has amounts receivable from the City related to the 2006 bond refunding in the amount of $387,583, which will be received through annual payments from the City through 2043.
Discount Rate - 1%
(5.90%)
Current Discount Rate
(6.90%)
Discount Rate +1%
(7.90%)
Plan's Net Pension
Liability/(Assets) 6,394,398$ 3,790,911$ 1,647,858$ 48 ROSE BOWL OPERATING COMPANY
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 12: PRIOR PERIOD ADJUSTMENTS
Change in Accounting Principle
For fiscal year ended June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences, which updated the recognition and measurement guidance for comp ensated absences, to align recognition and measurement under a single unified model to better meet the nee ds of financial statement users; refer to note 1.
Change in accounting principal from GASB 101 totals $131,629 fo r the Rose Bowl and 6,110 for the Golf Course. Additionally, the City removed short-term subscription s for the Rose Bowl totaling 63,786 from Capital Assets to better align with GASB 96.
NOTE 13: SUBSEQUENT EVENTS
The Company evaluated subsequent events for recognition and dis closure through December 10, 2025, the date which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025 other than the item noted above that required recognition or disclosure in such financial statements.
June 30, 2024 Changes in
As Previously Accounting June 30, 2024
Reported Principle As Restated
Rose Bowl Operating Company
Rose Bowl (47,740,231) $ (195,415) $ (47,935,646)$ Golf Course 23,516,156 (6,110) 23,510,046 Total proprietary funds (24,224,075) $ (201,525) $ (24,425,600)$ 49 7+,63$*(,17(17,21$//</()7%/$1.
50
5(48,5('6833/(0(17$5<,1)250$7,21
51 ROSE BOWL OPERATING COMPANY
Cost Sharing Multiple-Employer Plans
Schedule of Proportionate Share of the Net Pension Liability As of June 30, for the Last Ten Fiscal Years
2025 2024 2023 2022
Measurement Period June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Proportion of the Net Pension Liability (Asset) 0.07838% 0.07863% 0.07536% 0.07321% Proportionate Share of the Net Pension Liability (Asset) 3,790,911$ 3,931,792$ 3,526,411$ 1,390,048$ Covered Payroll 4,107,965$ 3,332,480$ 3,209,344$ 2,655,214$ Proportionate Share of the Net Pension Liability (Asset) as Percentage of Covered Payroll 92.28% 117.98% 109.88% 52.35% Total Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 80.35% 77.23% 87.16% 90.35%
Notes to Schedule of Proportionate Share of the Net Pension Liability:
Benefit Changes : There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs. Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer-specific liabilities. These employers should consult with their auditors. Additionally, the figures above do not include any liability impact that occurred after the June 30, 2023 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
Changes of Assumptions: There were no assumption changes in 2024. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
52 2021 2020 2019 2018 2017 2016
June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015
0.07105% 0.06964% 0.06867% 0.06821% 0.06766% 0.07266%
2,996,767$ 2,788,864$ 2,587,867$ 2,688,676$ 2,350,455$ 1,993,478$ 3,273,956$ 3,083,082$ 2,798,456$ 2,583,602$ 2,183,555$ 2,292,759$
91.53% 90.46% 92.47% 104.07% 107.64% 86.95%
76.58% 75.26% 77.69% 75.39% 75.87% 78.40%
53 ROSE BOWL OPERATING COMPANY
Cost Sharing Multiple-Employer Plans
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years
Fiscal year ended June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 Actuarially Determined Contributions 685,640$ 621,165$ 608,451$ 593,271$ Contribution in Relation to the Actuarially Determined Contribution (685,640) (621,165) (608,451) (593,271) Contribution Deficiency (Excess) -$ -$ -$ -$ Covered Payroll 4,375,414$ 4,107,965$ 3,332,480$ 3,209,344$ Contributions as a Percentage of Covered Payroll 15.67% 15.12% 18.26% 18.49% Note to Schedule:
Valuation Date: June 30, 2023
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of payroll, closed Assets valuation method Market Value
Discount Rate 6.90% (net of administrative expenses)
Projected Salary Increases
Inflation 2.30%
Payroll Growth 2.80%
54 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 513,532$ 537,091$ 470,264$ 403,984$ 371,534$ 317,561$ (513,532) (537,091) (470,264) (403,984) (371,534) (317,561) -$ -$ -$ -$ -$ -$ 2,655,214$ 3,273,956$ 3,083,082$ 2,798,456$ 2,583,602$ 2,183,555$
19.34% 16.40% 15.25% 14.44% 14.38% 14.54%
55 7+,63$*(,17(17,21$//</()7%/$1.
56 LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
Rose Bowl Operating Company
Pasadena, California
We have audited, in accordance with the auditing standards gene rally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial stateme nts of the Rose Bowl Operating Company (the “Company”), a component unit of the City of Pasadena, Cali fornia (the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Company’s basic financial statements, and have issued our report thereon dated December 10, 2025.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Company’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Company’s int ernal control. Accordingly, we do not express an opinion on the effectiveness of the Company’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allo w management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely b asis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less s evere than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal contr ol that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Company’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and ma terial effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
57 To the Board of Directors
Rose Bowl Operating Company
Pasadena, California
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not t o provide an opinion on the e ffectiveness of the Company’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Company’s internal control and compliance. A ccordingly, this communication is not suitable for any other purpose.
Irvine, California
December 10, 2025
58