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HomeMy WebLinkAboutAGENDA REPORT 2002 0320 CC REG ITEM 11GV MOORPARK CITY COUNCIL AGENDA REPORT ITEM CT[), `;F ?;rO(Iikl ",RX, CAtII ORNIA of r'­, d TO: Honorable City Council FROM: Dana Shigley, Administrative Services Dire t DATE: March 6, 2002 (meeting of March 20, 2002) SUBJECT: CONSIDER THE FISCAL YEAR 2000 /2001 ANNUAL FINANCIAL STATEMENTS, SINGLE AUDIT REPORT AND MANAGEMENT REPORT BACKGROUND The City is required to conduct an annual independent audit of its financial statements. In addition to the general purpose audit, the city is also required to conduct an independent "single audit" that focuses on federal pass- through funds and a "management report" which addresses internal procedures. DISCUSSION For the third consecutive year, the audit firm of Vavrinek, Trine, Day & Co., has conducted the annual audit and prepared the necessary financial statements. These reports have been provided to the City Council under separate cover and are available to the public on request. STAFF RECOMAENDATION Receive and file the City's annual financial statements for the year ended June 30, 2001. March 12, 2002 To: Honorable City Council From: Dana Shigley, Administrative Services Director Subject: Annual Financial Statements for fiscal year ended June 30, 2001 Attached for your information are the annual financial statements for the year ended June 30, 2001 for both the City of Moorpark and the Moorpark Redevelopment Agency. Also attached is the auditor's Management Letter for the same period. These reports will appear on the Council and Agency agendas for the March 20 meeting to be formally received and filed. These financial statements are quite comprehensive. To assist you, I have attached a one -page analysis of the revenues and expenditures in the General Fund, and the resulting impact on the fund's balance. A brief explanation is below. Revenues General fund revenues exceeded budgeted amounts by about $1.09 million. Revenues increased over last year by $1.43 million; however, of this amount, $710,000 was the result of implementation of a cost allocation plan, and is offset by increased expenditure levels, with no net impact on fund balance. Discounting that accounting change, total revenues increased by about $720,000 over last year, an increase of about 10 %. *Sales tax revenues were $1.869 million, nearly identical to the $1.809 million received in the previous year. Property tax revenues increased 15 %, or $258,000, over the previous year, finally reflecting the numerous new homes constructed in the last couple of years. Motor Vehicle In Lieu fees increased 11 % over the previous year, from $1.488 million to $1.657 million. This is consistent with the 10% annual increase experienced last year. These three sources represent 62% of all general fund revenues. •Revenues from Interest Earnings increased by $91,000, or 13% over last year. The amount invested has increased as the General Fund balance has increased. Earnings in 2001/2002 will be lower, as interest rates have dropped. Expenditures Actual General Fund expenses were nearly $800,000 less than budgeted level, with savings spread through all departments. Savings resulted in several departments from positions that remained vacant during the year and special projects that were not completed. Expenditures in the "overhead" departments increased significantly in 2000/2001 along with the implementation of the cost allocation plan mentioned above; however, revenues increased by the same amount, so there was no net impact. Public Safety expenditures increased from $3.241 million to $3.484, an increase of 8 %. Overall, total expenditures increased by $1.255 million over the 1999/2000 fiscal year. Fund Balance In sum, unanticipated revenues of $1.09 million, added to budget savings of about $800,000, resulted in an increase to the general fund balance of $1.890 million. In addition, one- time transfers between funds and the expenditure of prior year unspent budget amounts net an additional $171,000. The general fund's balance at June 30, 2000 was $8.536 million, and increased to $10.598 million by June 30, 2001. The Council will recall that, as part of the last two annual budgets, unspent appropriations and unanticipated revenues from the 1999/2000 fiscal year were set aside for special projects and programs. The balance of these funds at June 30, 2001, which is included in the fund balance figure noted above, is $739,000 ($433,700 of this is appropriated in the 2001/2002 budget). As with last year, during development of the 2002/2003 the City Manager will recommend uses for this amount, as well as for the use of the operational surplus of $1.89 million for the 2000/2001 fiscal year. Non - General Fund The other operating and capital funds ended the year with revenue and expense levels generally in line with projected levels. Notable changes over last year include significant increases in revenues to development related funds, such as the Traffic System Management, Endowment Fund, Park Improvement Funds and Areas of Contribution funds, as a result of various housing developments in process during the year. For similar reasons, both revenues and expenses in the Community Development fund were also increased significantly over last year. The Endowment Fund ended the year with a balance of $7.2 million, an increase of $2.4 million during the year. Management Report In addition to reporting on the City's financial status, the annual audit includes a review of internal management practices, pointing out areas where internal control could be improved. The auditors found that, of the eight recommendations made last year, five have either been implemented or are in process. Nine recommendations were made this year, including three carried over from the previous year; many of these nine recommendations have since been implemented. The recommendations yet to be implemented or otherwise resolved include: 1) improved monitoring of developer deposits (note that custom software is currently being developed to resolve this problem), 2) development of a written policy for backing up the computer systems (this is in process), 3) implementing improved fixed asset tracking (this project is underway), 4) updating the city's purchasing ordinance, and 5) development of a comprehensive accounting policies and procedures manual. Staff will work toward implementation of these recommendations in the coming year. If you have any questions at all about these annual reports, please call me any time. Cc: Steven Kueny, City Manager Hugh Riley, Assistant City Manager Attached: General Fund Revenue and Expense Summary Annual Financial Statement — City of Moorpark Annual Financial Statement — Moorpark Redevelopment Agency Annual Management Letter Annual Single Audit Report City of Moorpark General Fund Expenditures and Revenues Comparsion of Estimated versus Actual Fiscal Year Ended June 30, 2001 REVENUES Estimated Actual Variance Property taxes 1,687,000 1,961,855 274,855 Sales taxes 1,555,000 1,869,411 314,411 Motor vehicle license taxes 1,521,500 1,656,722 135,222 Utility franchise taxes 659,000 668,177 9,177 Subventions and grants 247,200 342,449 95,249 Charges for current services 491,700 609,147 117,447 Charges to other funds for services 710,301 710,321 20 Fines & forfeitures 100,800 113,085 12,285 Interest 756,926 800,511 43,585 Other 37,500 125,020 87,520 Total Revenues 7,766,927 8,856,698 1,089,771 EXPENDITURES 1100 City Council 32,800 30,906 1,894 2100 City Manager 247,305 245,772 1,533 3100 City Clerk 335,537 319,339 16,198 3110 Human Resources 117,272 85,388 31,884 3120 Public Information 131,665 45,725 85,940 4100 City Attorney 94,000 24,415 69,585 5100 Administrative Services 595,752 552,005 43,747 5110 City Treasurer/Finance 440,408 418,387 22,021 5210 Emergency Services 21,395 6,765 14,630 6100 Community Development - - - 7210 Animal Regulations 67,500 43,210 24,290 7520 Vector Control 258,510 246,724 11,786 7610 Senior Center 125,258 106,121 19,137 7620 Community Facilities 223,885 168,756 55,129 7630 Recreation 644,752 530,264 114,488 7800 Park Maintenance 542,100 372,954 169,146 8100 Public Works 64,113 68,142 (4,029) 8310 Street Maintenance 65,999 50,999 15,000 8320 NPDES 11,247 8,408 2,839 8330 Parking Enforcement 4,800 4,799 1 9200 Public Safety 3,569,405 3,484,489 84,916 Total Expenditures 7,762,139 6,965,480 796,659 Beginning Fund Balance 8,536,132 Net of Operating Revenues over Expenditures 1,891,218 Expenditures from prior year surplus (288,394) Interest from MRA for Prior Year Advances 484,761 Net Transfers to State Grant Fund (25,257) Total Increase /(Decrease) in Fund Balance 2,062,328 Ending Fund Balance 10,598,460 CITY OF MOORPARK MOORPARK, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year July 1, 2000 through June 30, 2001 CITY OF MOORPARK ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2001 CONTENTS PAGE GENERAL PURPOSE FINANCIAL STATEMENTS Independent Auditors' Report I All Fund Types and Account Groups Combined Balance Sheet 3 All Governmental Fund Types Combined Statement of Revenues, Expenditures and Changes In Fund Balances 5 Combined Statement of Revenues, Expenditures and Changes In Fund Balances — Budget and Actual 6 Notes to General- Purpose Financial Statements 8 SUPPLEMENTARY SCHEDULES All Special Revenue Funds Combining Balance Sheet 30 Combining Statement of Revenues, Expenditures and Changes In Fund Balances 33 Combining Statement of Revenues, Expenditures and Changes In Fund Balances — Budget and Actual 36 All Capital Projects Funds Combining Balance Sheet 42 Combining Statement of Revenues, Expenses and Changes In Fund Balances 44 Combining Statement of Revenues, Expenditures and Changes In Fund Balance - Budget and Actual 46 Agency Fund — Developer Deposit Fund Statement of Changes in Assets and Liabilities 48 CITY OF MOORPARK ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2001 CONTENTS (Continued) PAGE STATISTICAL SECTION Revenues by Source — All Governmental Fund Types — Last Ten Fiscal Years 49 Expenditures by Function — All Governmental Fund Types — Last Ten Fiscal Years 50 Assessed Value of Taxable Property — Last Ten Fiscal Years 51 Secured Tax Charge and Delinquencies — Most Recent Five Year History 52 Direct and Overlapping Bonded Debt as of Fiscal Year 1999 -2000 53 Computation of Legal Debt Margin and Breakdown of General Property Tax Levy 54 City Population — Last Ten Years 55 Building Permit Valuation — Last Ten Fiscal Years 56 Largest Property Owners — Per Assessed Valuation 1998 57 Miscellaneous Statistics 58 rris I i VALUE THE DIFFERENCE U66V Vavrinek, Trine, Day & Co., LLP Certified Public Accountants & Consultants INDEPENDENT AUDITORS' REPORT The Honorable City Council City of Moorpark Moorpark, California We have audited the accompanying general - purpose financial statements of the City of Moorpark as of and for the year ended June 30, 2001, as listed in the accompanying table of contents. These general - purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general - purpose financial statements based on our audit. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general - purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general - purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general - purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In accordance with Government Auditing Standards, we have also issued a report dated November 20, 2001 on our consideration of City of Moorpark's internal control over financial reporting and our tests of its compliance with certain provisions of laws regulations, contracts and grants. The City has not maintained complete records relating to the fixed assets of the General Fixed Asset Account Group. Accordingly, we are unable to satisfy ourselves as to the fixed assets of the General Fixed Assets Account Group amounting to $22,038,103. In our opinion, except for the omission of the information discussed in the preceding paragraph, the general- purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Moorpark, California as of June 30, 2001, and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America. 8270 Aspen Street Rancho Cucamonga, CA 91730 Tel: 909.466.4410 Fax: 909.466.4431 www.vtdcpa.com FYI FRESNO • LAGUNA HILLS • PLEASANTON • RANCHO CUCAMONGA • SACRAMENTO • SAN JOSE Our audit was made for the purpose of forming an opinion on the general - purpose financial statements taken as a whole. The combining and individual fund statements listed in the accompanying table of contents as supplementary information are presented for purposes of additional analysis and are not a required part of the general - purpose financial statements of the City of Moorpark, California. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated, in all material respects in relation to the general - purpose financial statements taken as a whole. The statistical information listed in the table of contents was not audited by us, and accordingly, we do not express an opinion thereon. Rancho Cucamonga, California November 20, 2001 0 M .m 5 2 W so CITY OF MOORPARK COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2001 (With Comparative Totals for June 30, 2000) ASSETS AND OTHER DEBITS Cash and Investments Restricted cash and investments Accounts and interest receivable, net Taxes receivable Notes and loans receivable Due from other funds Long -term advance in Redevelopment Agency Other assets Land held for resale Property and equipment Amount available for debt service Amount to be provided for retirement of general long -term debt Total Assets LIABILITIES Liabilities: Accounts payable and accrued liabilities Employees compensated absences payable Deposits, principally from developers Due to other funds Deferred revenue Long -term advance from City General Fund Tax allocation bonds payable Total Liabilities FUND EQUITY AND OTHER CREDITS Fund balances and other credits: Investment in general fixed assets Fund balances: Reserved for unpaid grants Reserved for encumbrances Reserved for receivables due after one year, net Reserved for land held for resale Reserved for prepaid expenditures Reserved for debt services Reserved for low /moderate income housing Reserved for advances in Redevelopment Agency Unreserved: Designated Undesignated Total Fund Equity and Other Credits Total Liabilities and Fund Equity 5,315 55,168 540,936 73,531 747,117 3,493,320 1,744,256 990,622 4,492 403,309 1,832,626 233,678 10,459,950 27,868,694 2,811,968 10,598,456 32,733,629 7,529,588 403,309 $ 11,111,006 $ 36,353,588 $ 8,367,471 $ 850,641 The accompanying notes are an integral part of these financial statements. 3 GOVERNMENTAL FUND TYPES Special Capital Debt General Revenue Projects Service $ 9,539,956 $ 32,992,734 $ 3,796,933 $ 803,959 593,113 766,601 76,006 10,381 239,061 22,417 24,279 73,623 785,119 3,493,320 660,761 42,461 12,022 4,492 10,590 1,744,256 990,622 8,367,471 $ $ 11,111,006 $ 36,353,588 $ 850,641 439,323 2,877,899 349,077 447,332 25,000 4,045 12,022 218,461 484,761 61,205 498,599 512,550 3,619,959 837,883 447,332 5,315 55,168 540,936 73,531 747,117 3,493,320 1,744,256 990,622 4,492 403,309 1,832,626 233,678 10,459,950 27,868,694 2,811,968 10,598,456 32,733,629 7,529,588 403,309 $ 11,111,006 $ 36,353,588 $ 8,367,471 $ 850,641 The accompanying notes are an integral part of these financial statements. 3 pn} MNi %e9 FIDUCIARY FUND TOTALS TYPE ACCOUNT GROUPS (Memorandum Only) General General -Long Agency Fixed Assets Term Debt 2001 2000 $ 1,413,623 $ 47,743,246 $ 39,115,418 803,959 1,082,005 1,446,101 1,906,710 285,757 136,747 4,352,062 4,600,988 715,244 3,097,664 1,865,369 15,082 13,781 +� 2,734,878 1,500,000 $ 22,038,103 22,038,103 21,221,029 $ 403,309 403,309 831,875 9,024,226 9,024,226 10,769;599 $ 1,413,623 _L_22,038,103 $ 9,427,535 _L_89,561,967 $ 86,141,185 4,113,631 2,242,136 232,535 232,535 196,105 1,413,623 1,442,668 1,518,004 r 715,244 3,097,664 559,804 527,206 1,865,369 9,195,000 9,195,000 9,540,000 1,413,623 9,427,535 16,258,882 18,986,484 22,038,103 22,038,103 21,221,029 5,315 49,097 596,104 263,711 4,313,968 4,415,786 2,734,878 1,500,000 4,492 3,664 .� 403,309 831,875 1,832,626 1,570,425 ma 1,865,369 233,678 4,249,058 41,140,612 31,184,687 i 22,038,103 73,303,085 67,154,701 1,413,623 $ 22,038,103 $ 9,427,535 $ 89,561,967 $ 86,141,185 w� rr 4 This page left blank intentionally. d y y 8 w so CITY OF MOORPARK COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2001 (With Comparative Totals for the Fiscal Year Ended June 30, 2000) , A+ The accompanying notes are an integral part of these financial statements. 5 Qw TOTALS GOVERNMENTAL FUND TYPES (Memorandum Only) General Special Capital Debt Fund Revenue Projects Service 2001 2000 REVENUES Property taxes $ 1,961,855 $ 2,541,900 $ 4,503,755 $ 3,692,893 Sales taxes 1,869,411 1,869,411 1,809,428 Other taxes $ 662,865 662,865 596,716 Motor vehicle license fees 1,656,722 1,656,722 1,488,473 Utility franchise fees 668,178 202,402 870,580 846,180 Building and safety fees 924,610 924,610 453,189 Maintenance assessments 6,132,478 $ 253,068 6,385,546 5,147,137 Subventions and grants 342,449 1,346,265 1,688,714 2,375,920 Planning and public works fees 1,321,470 1,321,470 1,456,613 Development fees 2,181,308 2,181,308 133,543 Charges for current services 777,792 43,302 821,094 628,527 Fines and forfeitures 113,085 155,635 268,720 230,148 Interest 540,914 1,875,778 530,170 41,058 2,987,920 2,384,356 Other 121,316 26,685 99,825 247,826 88,120 Total Revenues 8,051,722 14,872,798 883,063 2,582,958 26,390,541 21,331,243 EXPENDITURES Current: General government 1,597,567 4,071 1,601,638 1,168,049 Public safety 3,781,307 48,675 271 3,830,253 3,476,781 Public services 252,934 3,873,836 294,971 613,910 5,035,651 5,070,009 Parks and recreation 840,348 1,011,300 1,851,648 1,383,146 Capital outlay 72,164 4,771,982 2,044,112 6,888,258 5,355,271 Debt service Principal 2,210,369 2,210,369 2,820,000 Interest 557,401 557,401 744,305 Total Expenditures 6,544,320 9,705,793 2,343,425 3,381,680 21,975,218 20,017,561 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,507,402 5,167,005 (1,460,362) (798,722) 4,415,323 1,313,682 OTHER FINANCING SOURCES (USES) Operating transfers in 822,098 1,217,939 878,536 2,918,573 1,481,809 Proceeds from sale of city property 3,704 7,980 11,684 Loss from sale of city property (15,000) (15,000) Operating transfers out (709,559) (963,418) (737,216) (508,380) (2,918,573) (1,481,809) Total Other Financing Sources (Uses) 116,243 247,501 (737,216) 370,156 (3,316) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER air EXPENDITURES AND OTHER USES 1,623,645 5,414,506 (2,197,578) (428,566) 4,412,007 1,313,682 Fund Balances, Beginning of Year 8,536,132 27,172,539 9,393,126 831,875 45,933,672 44,518,954 .gyp Prior Period Adjustment 484,761 100,502 334,040 919,303 101,036 Fund Equity Transfer/Residual Equity Transfer (46,082) 46,082 Fund Balances, End of Year $ I 5982456 $ 32,733,629 $ 7,529,588 $ 403,309 $ 51,264,982 $ 45,933,672 , A+ The accompanying notes are an integral part of these financial statements. 5 Qw CITY OF MOORPARK COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2001 The accompanying notes are an integral part of these financial statements. Ell 0 W W w GENERAL FUND SPECIAL REVENUE FUNDS Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES Property taxes $ 1,687,000 $ 1,961,855 $ 274,855 Sales taxes 1,555,000 1,869,411 314,411 Other taxes $ 598,090 $ 662,865 $ 64,775 Motor vehicle license fees 1,521,500 1,656,722 135,222 Utility franchise fees 659,000 668,178 9,178 187,000 202,402 15,402 Building and safety fees 1,122,491 924,610 (197,881) Maintenance assessments 7,947,809 6,132,478 (1,815,331) Subventions and grants 247,200 342,449 95,249 2,213,259 1,346,265 (866,994) Planning and public works fees 1,321,470 1,321,470 Development fees 2,181,308 2,181,308 Charges for current services 660,345 777,792 117,447 1,680,054 43,302 (1,636,752) Fines and forfeitures 100,800 113,085 12,285 105,000 155,635 50,635 Interest 496,926 540,914 43,988 1,092,138 1,875,778 783,640 Other 37,500 121,316 83,816 10,300 26,685 16,385 6,965,271 8,051,722 1,086,451 14,956,141 14,872,798 (83,343) EXPENDITURES Current: General government 2,027,028 1,597,567 429,461 Public safety 3,891,476 3,781,307 110,169 274,511 48,675 225,836 Public services 372,176 252,934 119,242 4,608,110 3,873,836 734,274 Parks and recreation 1,013,901 840,348 173,553 1,206,318 1,011,300 195,018 Capital outlay 196,459 72,164 124,295 12,738,309 4,771,982 7,966,327 Debt service Principal Interest Total Expenditures 7,501,040 6,544,320 956,720 18,827,248 9,705,793 9,121,455 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (535,769) 1,507,402 2,043,171 (3,871,107) 5,167,005 9,038,112 OTHER FINANCING SOURCES (USES) Operating transfers in 801,656 822,098 20,442 872,489 1,217,939 345,450 Proceeds from sale of city property 3,704 3,704 7,980 7,980 Loss from sale of city property 15,000 ( ) (15,000) Operating transfers out (854,489) (709,559) 144,930 (819,656) (963,418) (143,762) Total Other Financing Sources (Uses) (52,833) 116,243 169,076 52,833 247,501 194,668 EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ (588,602) 1,623,645 $ 2,212,247 $ (3,818,274) 5,414,506 $ 9,232,780 Fund Balances, Beginning of Year 8,536,132 27,172,539 Prior Period Adjustment 484,761 100,502 Fund Equity Transfer/Residual Equity Transfer (46,082) 46,082 Fund Balances, End of Year $ 10,598,456 $ 32,733,629 The accompanying notes are an integral part of these financial statements. Ell 0 W W w $ (3,598,218) (2,197,578) $ 1,400,640 $ (731,898) 9,393,126 334,040 $ 7,529,588 (428,566) $ 303,332 $ (8,736,992) 831,875 $ 403,309 4,412,007 $ 13,148,999 45,933,672 919,303 $ 51,264,982 TOTAL CAPITAL PROJECTS FUNDS DEBT SERVICE (Memorandum Only) Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 1,884,800 $ 2,541,900 $ 657,100 $ 3,571,800 $ 4,503,755 $ 931,955 1,555,000 1,869,411 314,411 598,090 662,865 64,775 1,521,500 1,656,722 135,222 846,000 870,580 24,580 1,122,491 924,610 (197,881) $ 609,220 $ 253,068 $ (356,152) 8,557,029 6,385,546 (2,171,483) 2,460,459 1,688,714 (771,745) 1,321,470 1,321,470 2,181,308 2,181,308 2,340,399 821,094 (1,519,305) 205,800 268,720 62,920 527,000 530,170 3,170 61,900 41,058 (20,842) 2,177,964 2,987,920 809,956 107,000 99,825 (7,175) 154,800 247,826 93,026 1,243,220 883,063 (360,157) 1,946,700 2,582,958 636,258 25,111,332 26,390,541 1,279,209 2,400 4,071 (1,671) 2,029,428 1,601,638 427,790 10,500 271 10,229 4,176,487 3,830,253 346,234 2,575,958 294,971 2,280,987 613,910 (613,910) 7,556,244 5,035,651 2,520,593 2,220,219 1,851,648 368,571 2,252,580 2,044,112 208,468 15,187,348 6,888,258 8,299,090 2,532,572 2,210,369 322,203 2,532,572 2,210,369 322,203 911,326 557,401 353,925 911,326 557,401 353,925 4,841,438 2,343,425 2,498,013 3,443,898 3,381,680 62,218 34,613,624 21,975,218 12,638,406 (3,598,218) (1,460,362) 2,137,856 (1,497,198) (798,722) 698,476 (9,502,292) 4,415,323 13,917,615 765,300 878,536 113,236 2,439,445 2,918,573 479,128 11,684 11,684 (15,000) (15,000) (737,216) (737,216) (508,380) 508,380 (1,674,145) (2,918,573) (1,244,428) (737,216) (737,216) 765,300 370,156 621,616 765,300 (3,316) (768,616) $ (3,598,218) (2,197,578) $ 1,400,640 $ (731,898) 9,393,126 334,040 $ 7,529,588 (428,566) $ 303,332 $ (8,736,992) 831,875 $ 403,309 4,412,007 $ 13,148,999 45,933,672 919,303 $ 51,264,982 This page left blank intentionally. N. m CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Moorpark (the City), accounts for its financial operations in accordance with accounting principles generally accepted in the United States of America applicable to governmental units. Accordingly, the City uses several fund types and account groups as described below. A. Fund Types and Account Groups The accounts of the City are organized on the basis of individual funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses as appropriate. The City's resources are allocated to and accounted for in these individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in the general - purpose financial statements as follows: Governmental Fund Types �` • General Fund: The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. • Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. • Capital Project Funds: Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. • Debt Service Funds: The Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest, and related costs. Fiduciary Funds *' • Agency Funds: Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments and/or other funds. The agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The agency funds use the modified accrual basis of accounting. Account Groups • General Fixed Assets Account Group General Fixed Assets Account Group, which is used to account for property and equipment purchased or received by the governmental fund types. CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) • General Long -Term Debt Account Group General Long -Term Debt Account Group, which is used to account for unmatured long -term indebtedness of the governmental fund types. B. Measurement Focus All governmental funds are accounted for on a spending or financial flow measurement focus, which means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance is their net current assets, which is considered only to be a measure of available spendable resources. Governmental fund operating statements present a summary of sources and uses of available spendable resources during a period by presenting increases and decreases in net current assets. Because of their spending measurement focus, governmental funds exclude fixed assets and noncurrent liabilities. Instead, these assets and liabilities are reported in the General Fixed Assets Account Group and the General Long -Term Obligations Account Group. These account groups measure only financial position; they are not funds and they do not measure results of operations. They maintain accounting control over the City's governmental fund fixed assets and City debt, which will be repaid by governmental funds. In those cases when a governmental fund records a long -term receivable or other non - current asset, an offsetting credit is made to deferred revenue, or undesignated fund balance is reduced to reflect the fact that this amount is not yet available. C. Reporting Entity ntity 0 The accompanying general - purpose financial statements include all accounts for the City and the Redevelopment Agency. The City of Moorpark Redevelopment Agency is a separate legal entity, over which the City Council exercises significant oversight responsibility and authority. The Financial operations of the Redevelopment Agency are included in the accompanying financial statements based on the financial interdependency of the City and the Redevelopment Agency, the absence of authoritative W independence of its officials, and the significant ability of the City Council to influence the Redevelopment Agency's operations and fiscal matters. Wk A component unit financial statement for the City of Moorpark Redevelopment Agency previously M described maybe obtained at 799 Moorpark Avenue, Moorpark, California 93021. w D. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the general - purpose financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. .o All governmental and agency fund types are accounted for using the modified accrual basis of accounting. W ow 9 w W ELJ CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Their revenues are recognized when they become measurable and available as net current assets. Those revenues susceptible to accrual are property taxes, sales taxes, transient occupancy taxes, interest revenues, and charges for services. Fines, licenses, and permit revenues are not susceptible to accrual because they generally are not measurable until received in cash. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on general long -term obligations which is recognized when due. Because of their current financial resources focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long -term amounts are not recognized as governmental fund expenditures or fund liabilities. E. Interfund Transactions In the course of normal operations, transactions occur among various City funds. Recurring operating transfers are recorded by the receiving fund as an operating transfer in and as an addition to fund balance. Such transfers are recorded by the disbursing fund as an operating transfer out and a reduction of fund balance. Due to /from accounts and advance to /from accounts are primarily related to advances made by the General Fund to various Special Revenue and Capital Projects Funds and the Redevelopment Agency. Advances to Special Revenue and Capital Projects Funds are current and will be repaid from the receipt of grant funds and future revenues. Long -term advances to the Redevelopment Agency, which total $0 at June 30, 2001, are to be repaid over an indeterminate period of time, and bear simple interest at a rate of 8 percent annually. These long -term advances are fully reserved in the General Fund. In July 2000, the City Council reduced the simple interest rate to 8 percent annually. F. Property Taxes The duties of assessing and collecting property taxes are performed by the Ventura county (County) Assessor and Tax Collector, respectively. The City receives an allocation of property taxes collected by the County with respect to property located within the City limits equal to 6.5 percent of the 1 percent State levy. The Redevelopment Agency receives incremental property taxes on property within its project area over the base - assessed valuation at the date the project area was established. Tax levies cover the period from July 1 to June 30 of each year. All tax liens are attached annually on the first day in January preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property, as it exists on that date. 10 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Secured property taxes are levied against real property and are due and payable in two equal installments. The first installment is due on November 1 and becomes delinquent if not paid by December 10. The second installment is due on February 1 and becomes delinquent if not paid by April 10. Unsecured personal property taxes are due on July 1 each year. These taxes become delinquent if not paid by August 31. G. Land Held for Resale Land held for resale in the Redevelopment Low -and Moderate - Income Special Revenue Fund totaled $2,734,878 at June 30, 2001. Such property represents land purchased by the Agency for redevelopment purposes. Land is valued at the lower of cost or estimated net realizable value. H. Fixed Assets and Long -Term Liabilities The General Fixed Assets Account Group provides accounting control over the cost of fixed assets used by the City's governmental funds. The General Fixed Assets Account Group is not a fund and its balances are not financial resources available for expenditure. Rather, they provide an historical accounting record of resources expended on general fixed assets. Public domain (infrastructure) general fixed assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, have not been capitalized because these assets are immovable and of value only to the public. No depreciation has been provided on general fixed assets. L" 0 All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair market value on the date donated. +s The General Long Term Debt Account Group provides accounting control over the unmatured principal of the City's general long -term debt. This debt will be repaid out of governmental funds but is not accounted for in these funds because this part of the debt does not require an appropriation or expenditure in this accounting period. The two account groups are not funds. They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. ae wr w� 11 ' CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I. Deposits Deposits principally consist of amounts collected from developers for services to be rendered by the City, including engineering, plan checks and inspections and planning review services. The City recognizes such amounts deposited as revenue when the services are performed and the corresponding expenditures are »- incurred. J. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in the governmental funds. Open encumbrances are recorded as reservations of fund balance since the commitments will be paid by subsequent years' budget appropriations. Encumbrances do not constitute expenditure or liabilities. K. New Accounting Standards Governmental Accounting Standards Board (GASB) Statement Number 33 The Governmental Accounting Standards Board (GASB) has issued Statement No. 33, "Accounting and Financial Reporting for Nonexchange Transactions ". The requirements of this Statement are effective for financial statements for periods beginning after June 15, 2000. The Statement establishes accounting and financial reporting standards to guide state and local governments' decisions about when to report the results " of nonexchange transactions involving cash and other financial capital resources. �w The Statement identifies four classes of nonexchange transactions, these are: (a) derived tax revenues (for example income taxes, sales taxes, and other assessments on earning or consumption), (b) imposed nonexchange revenues (for example property taxes and fines), (c) government- mandates nonexchange transactions (for example federal programs that state or local governments are mandated to perform), (d) voluntary nonexchange transactions (for example certain grants and private donations). The implementation did not have a material effect on the financial statements of the City. 12 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental Accounting Standards Board (GASB) Statement Number 34 The Governmental Accounting Standards Board has issued Statement No. 34, "Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments ". This Statement establishes a new financial reporting model for state and local governments. This new model requires that at a minimum the basic financial statements of a government include: (1) Management's discussion and analysis (MD &A) as a component of required supplementary information (RSI), (2) both government -wide financial statements and fund financial statements, (3) notes to the financial statements and (4) RSI other than MD &A. The implementation of the Statement is mandated in three phases based upon a government's total annual revenues of its governmental and enterprise funds in the fiscal years ending after June 15, 1999. Phase 1 governments, those with annual revenues of $100 million or greater will be required to implement for periods beginning after June 15, 2001. Phase 2 governments, those with annual revenues of $10 million or more but less than $100 million will be required to implement for periods beginning after June 15, 2002. Phase 3 governments, those with annual revenues of less than $10 million will be required to implement for periods beginning after June 15, 2003. The Statement also requires that governments capitalize all infrastructure assets, and also include all debt of the government in the Statement of Net Assets. (Although the implementation of the infrastructure assets can be deferred until future years depending on the implementation Phase as noted above). This will be a complete change in the presentation of government financial statements. The City of Moorpark has already begun to develop plans and implement policies to prepare for the implementation of the new reporting model defined within GASB Statements No. 34. L. Deferred Compensation 0 In October 1997, GASB Statement No. 32, "Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans ", was issued. This Statement establishes accounting and W financial reporting standards for Internal Revenue Code (IRC) section 457 deferred compensation plans of state and local governments. Pursuant to the IRC 457 subsection (g), all amounts of compensation deferred under the plan, all property, or rights are solely the property and rights of the employee and beneficiaries of the Plan. Deferred compensation funds are not subject to the claims of the City's general creditors. The City has established an eligible deferred compensation plan in accordance with subsection (g) of the IRC Section 457. Under the provisions of this Statement, it is no longer considered appropriate to report the w� Section 457 plan in the City's financial statements. The investments under the City's 457 plan as of June 30, 2001, were $1,199,716. 13 W rr 1W as CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Total (Memorandum Only) Columns The combined financial statements include certain "Memorandum Only" totals, which represent mathematical summations of account totals by fund type and account group and do not reflect the elimination of interfund transactions. Such totals are for information purposes only and do not present consolidated financial information. N. Reclassifications Certain reclassifications have been made to the comparative total amounts reported in prior years in order to conform to the current year's presentation. NOTE #2 — BUDGETARYINFORMATION fi The City Council adopts a formal budget at the beginning of the City's fiscal year providing for operations and capital expenditures of the City's General Fund, Special Revenue Funds, Capital Projects Funds, and the Debt Service Funds. Budgetary controls and the levying of taxes are established by the City within state limitations. The City's adopted budget requires that expenditures not exceed appropriations in total form each fund. The budgetary basis of accounting is consistent with accounting principles generally accepted in the United States of America applicable to the City's financial statements. The Council is authorized to make and has made appropriation adjustments to the budget during the year as deemed necessary. Such adjustments, which are considered immaterial, are included in the budget amounts in the accompanying general - purpose financial statements. Appropriations lapse at year -end. NOTE #3 — CASHAND INVESTMENTS Cash and investments of the City are pooled for deposit and investment purposes. Interest earned on pooled investments is credited to the funds based on each fund's average deposit balance. Investments are stated at fair value. The City's investments consist primarily of the State of California Local Agency Investment Fund (LAIF) and money market investments. Ms N 14 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #3 — CASH AND INVESTMENTS (Continued) A. Deposits The California Government Code requires California banks and savings and loan associations to secure a city's deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 110 percent of a city's deposits. California law also allows financial institutions to secure such deposits by pledging first trust deed mortgage notes having a value of 150 percent of a city's total deposits. B. Investments The City temporarily invests its excess cash in instruments, which are allowable under current legislation of the State of California (Government Code Section 53600 et seq.). The state code permits investments in the following instruments: • Securities of the U. S. government or its agencies • Small business administration loans • Certificates of deposit (or time deposits) placed with commercial banks and/or savings and loan companies • Negotiable certificates of deposit • Bankers' acceptances • Commercial paper • Local Agency Investment Fund (LAIF) • Repurchase agreements, Passbook savings accounts • Reverse - repurchase agreements As of and for the year ended June 30, 2001 and for the year ended, the City did not choose to utilize either repurchase agreements or reverse - repurchase agreements, investment vehicles; nor did it engage in securities lending activities. The City's cash and investments at June 30, 2001 are as follows: Unrestricted cash and investments Restricted cash and investments Total Cash and Investments 0 ■s $47,743,246 803,959 $48,547,205 F 15 ,�,,, CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS .NNE 30, 2001 NOTE #3 — CASH AND INVESTMENTS (Continued) The cash and investments are aggregated as follows: Deposits $ 9,186,253 Petty cash 1,100 Investments 39,359,852 Total Cash and Investments $48,547,205 The City's deposits at June 30, 2001 are categorized in the following table: BANK BALANCE - CATEGORY BANK CARRYING 1 2 3 BALANCES AMOUNTS Categorized Deposits held with banks $ 100,000 $ 9,381,437 $ 9,481,437 $ 9,186,253 Total $ 100,000 $ 9,381,437 $ 9,481,437 $ 9,186,253 Category 1: Includes deposits that are insured or collateralized with securities held by the City or its agent in the City's name. Category 2: Includes deposits that are collateralized with securities held by the pledging financial institution's trust department or agent in the City" name. Category 3: Deposits, which are uncollaterlized, or collateralized with securities held by the pledging financial institution or by its trust department or agent but not in the City's name. The City's investments at June 30, 2001 are categorized in the following table: CATEGORY Carrying Fair (1) (2) (3) Value Value Investments held in trust by fiscal agents on behalf of the City of Moorpark (restricted assets)- investment agreement Fidelity Money Market Fund U.S. Treasuries State Treasurer's Local Agency Investment Fund (1) Common Stock - Disney Total * Not required to be categorized. $ 771, 100 $ 771,100 32,859 32,859 $ 5,954,828 5,953,739 5,954,828 32,598,312 32,671,252 $ 3,328 3,842 3,328 $ 5,958,156 $ - $ - $39,359,852 $39,433,367 16 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #3 — CASHAND INVESTMENTS (Continued) Category 1: Includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2: Includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3: Includes uninsured and unregistered investments for which securities are held by the � counterparty's trust department or agent but not in the City's name.. (1) The management of the State of California Pooled Money Investment Account (generally referred to as LAIF) has indicated to the City that as of June 30, 2001, the carrying amount of the pool was W $54,496,268,373 and the estimated market value for the pool (including accrued interest) was $55,175,428,123. The City's proportionate share of that value is $32,598,312. Included in LAIF's investment portfolio are certain derivative securities or similar products in the form of structured notes totaling $1,517,548,000, and asset - backed securities totaling $937,996,000. LAIF's (and the City's) eo exposure to risk (credit, market or legal) is not currently available. Fair Value of Investments 77 Accounting pronouncement GASB Statement No. 31 generally applies to investments in external investment pools, investments purchased with maturities greater than one year, mutual funds, and certain investment pools. Generally, governmental entities need to report the "fair value" changes for these investments at year -end and records these gains or losses on their income statement. State of California State Treasurer's Local Agency Investment Fund (LAIF): The City holds an investment in LAIF that is subject to being adjusted to "fair value ". The City is required to disclose its methods and .m assumptions used to estimate the fair value of its holdings in LAIF. The City relied upon information W provided by the State Treasurer in estimating the City's fair value position of it's holding in LAW. The City had a contractual withdrawal value of $32,598,312 whose pro -rata share of fair value was estimated by the state Treasurer to be $32,671,252. The fair value change in this investment for the year came to an amount that was not material for presentation in the financial statements. The State Treasurer's Local Agency Investment Fund ( "LAIF ") is a governmental investment pool managed and directed by the California State Treasurer and is not registered with the Securities and Exchange Commission. An oversight committee, comprised of California State officials and various participants, provide oversight to the management of the fund. The daily operations and responsibilities of LAIF fall under the auspices of the State Treasurer's office. The City is a voluntary participant in the investment pool. ob go 17 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #4 — LONG -TERM DEBT The following is a schedule of changes in long -term debt for the fiscal year ended June 30, 2001: Balance Beginning of Year Additions Deletions A. Employee compensated absences payable $ 196,105 $ 36,430 B. Long -term advances from the General Fund 1,865,369 C. 1999 Tax Allocation Bonds 9,540,000 $ 1,865,369 345,000 Balance End of Year $ 232,535 9,195,000 Totals $11,601,474 $ 36,430 $ 2,210,369 $ 9,427,535 A. Employee Compensated Absences Payable In accordance with accounting principles generally accepted in the United States of America, the City recognizes the long -term portion of accumulated employee compensated absences in the Long -Term Debt Account Group. B. Advances from the General Fund The City's General Fund has paid for services and start-up expenditures incurred by the Redevelopment Agency (short-term advances). The balance of these short-term operating advances amounted to $1,865,369 at the beginning of the fiscal year and were completely repaid during the 2000 -2001 fiscal year. C. 1999 Tax Allocation Bonds In 1999, the Redevelopment Agency issued a $9,860,000 aggregated principal amount of Moorpark Redevelopment Project 1999 Tax Allocation Refunding Bonds (the Bonds). The purpose of the Bonds was to advance refund the Agency's previously issued $10,000,000 Moorpark Redevelopment Project, 1993 Tax Allocation Bonds. The purpose of the 1993 Bonds was to finance a portion of the costs of implementing the Redevelopment Plan, including low -and moderate - income housing projects. The 1999 Bonds bear interest at rates ranging from 3.05 percent to 4.875 percent per annum, payable semi - annually on April 1 and October 1 of each year, commending on October 1, 1999, and are subject to mandatory sinking fund redemption commencing on October 1, 2009, and on each October 1 thereafter. The Bonds are payable from and secured by the tax revenues to be derived from the project area. "" ` 18 CITY OF MOORPARK,. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 y NOTE #4 —LONG- TERM DEBT (Continued) The bonds are secured by all property tax increment revenue, which is deposited directly with the fiscal agent and recorded in the Debt Service Fund. Cash and investments in the custody of the fiscal agent are restricted by the bond resolutions for payment of principal and interest on the Tax Allocation Bonds. In addition, the bond resolutions require retention of funds held by the fiscal agent prior to use for other than debt service. The Redevelopment Agency is in compliance with the covenants contained in debt indentures, which require the establishment of certain specific accounts for the Tax Allocation Bonds. Debt service payments on the 1999 Tax Allocation Refunding Bonds payable will be made from the Debt Service Fund. Annual debt service requirements to maturity are as follows: Fiscal Year Ending ra June 30, Principal Interest Total W 2002 $ 355,000 $ 408,638 $ 763,638 "a 2003 365,000 396,124 761,124 we 2004 380,000 382,710 762,710 2005 395,000 368,368 763,368 Awl 2006 405,000 353,065 758,065 Thereafter 7,295,000 2,526,935 9,821,935 Total $ 9,195,000 $4,435,840 $ 13,630,840 D. Prior Year's Debt Defeasance In prior years, the City has defeased the 1993 tax allocation bond issue by creating separate irrevocable trust funds. New debt has been issued and the proceeds have been used to purchase U.S. government securities that were placed in the trust funds. The investments and fixed earnings from the investments are sufficient to fully service the defeased debt until the debt is called or matures. For financial reporting purposes, the .r debt has been considered defeased and therefore removed as a liability from the Agency's General Long - Term Debt Account Group. As of June 30, 2001, the amount of defeased debt outstanding but removed from the General Long -Terms Debt Account Group amounted to $8,400,000. NOTE #5 —LOW- AND MODERATE- INCOME HOUSING SET ASIDE W The Health and Safety Code section 33334.2 requires cities with redevelopment agencies to use at least 20 percent of tax increment revenues generated by a redevelopment project area to increase and improve the supply of low -and moderate - income housing in the community. W 19 0 ,0 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #6 — AGREEMENTS WITH VARIO US TAXING AGENCIES The Moorpark Redevelopment Agency has entered into five (5) agreements for allocation and distribution of tax increment revenues. The Agency has entered into an agreement with the County of Ventura, Ventura County Library District, Ventura County Fire Protection District, and Ventura County Flood Control District (collectively, the "County Taxing Entities "), which provides for the Agency to retain 100 percent of the County Taxing Entities share (55.82 percent) of annual tax increment revenues up to $1,750,000. For annual tax increment revenue in excess of $1,750,000, the Agency shall distribute 55.85 percent of such revenues to the County on behalf of the County Taxing Entities. The County Taxing Entities have agreed to defer payments in the initial years of the Redevelopment Plan, and consequently, the parties agree that the County Taxing Entities may receive payments in any single fiscal year in excess of the amount of tax revenues the County Taxing Entities would otherwise be entitled to, but for the adoption of the Redevelopment Plan. Additionally, the agreement calls for the Agency to receive a $1,000,000 payment from the tax increment disbursed to the County pursuant to the agreement, by December 31, 2008, if and only if the Agency's annual debt statements which are filed with the County Auditor - Controller from fiscal year 1993 -94 to fiscal year 2008 -09 list debts in an amount equal to or in excess of the maximum tax increment available to the Agency in each of such fiscal years. w The second agreement is with the City of Moorpark Vector Control, formerly known as the Moorpark Mosquito Abatement District and state that the City of Moorpark Vector Control shall receive 87.5 percent of its share (1.53 percent) of annual tax increment revenue. The City of Moorpark Vector Control has agreed to contribute its pro rata share of the Agency's required annual payment to the Agency. The third agreement is with the Moorpark Unified School District (the "School District "), and states that the School District shall receive, after the Agency has satisfied debt service payments to bond or note holders or to the holder of any other instruments of Agency indebtedness (provided such indebtedness is not reasonable foreseeable to impair the Agency's obligation under the agreement), the School District's share (33.31 percent) of tax increment revenues generated by an annual 2 percent increase in assessed valuation, and beginning in fiscal year 1995 -96, 14 percent of the School District's share of annual tax increment revenue. Additionally, the agreement calls for the Agency to make a one -time $750,000 payment to the School District as a contribution to a new School District maintenance facility, at a future date. Under a separate agreement between the City and the MUSD, all School District share of tax increment revenues shall be payable to the City until one -half of the cost of tennis courts constructed in AUPC has been paid. As of June 30, 2001, the remaining balance of the payable was withheld from the School District share of tax increment. U11 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 w NOTE #6 — AGREEMENTS WITH VARIOUS TAXING AGENCIES (Continued) The fourth agreement is with the Ventura County Community College District (the "Community College District "), and states that the Community College District will receive, after the Agency has satisfied debt service payments to bond or note holders or to the holders of any other instruments of Agency indebtedness (provide such indebtedness is not reasonable foreseeable to impair the Agency's obligation under the agreement), the Community College District's share (5.80 percent) of tax increment revenues generated by an annual 2 percent increase in assessed valuation, and, beginning in fiscal year 1993 -94, 14 percent of the Community College District's share of annual tax increment revenue. The fifth agreement is with the Ventura county Superintendent of Schools Office (the "Superintendent "), and rr states that the Superintendent shall receive its share 910.28 percent) of tax increment revenues generated by an annual 2 percent increase in assessed valuation. NOTE #7 — RETIREMENT PLAN A. Plan Description The City of Moorpark's defined benefit pension plan (the Plan) provides retirement and disability benefits, annual cost -of- living adjustments, and death benefits to plan members and beneficiaries. The Plan is part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), and agent - multiple- employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements are established by State statutes within the Public Employees' Retirement Law. The City of Moorpark selects optional benefits through local ordinance. CalPERS issues a separate «� comprehensive annual financial report. Copies of the CalPERS' annual financial report may be obtained from the CalPERS Executive Office — 400 P. Street, Sacramento, CA 95814. All full -time City employees are eligible to participate in the Plan. Part-time employees appointed to a term 40 of one year or longer and who work an average of 20 hours per week are also eligible to participate. Other part-time non - benefited hourly employees do not participate in the Plan. (Effective January 1, 1992, such so part-time employees participate in a defined deferred compensation program). Related benefits vest after five years of service. Upon five years of service, employees who retire at or after age 50 are entitled to receive an annual retirement benefit. The benefit is payable monthly for life, in an amount that varies, from 2 percent at age 50 to a maximum of 2.7 percent at age 55 for safety employees, and 1.092 percent at age 50 to a maximum of 2.418 percent at age 63 for non -safety employees, of the employees' average of the three highest year's salary for each year of credited service. The Plan also provides death and disability benefits. 21 r CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #7 — RETIREMENT PLANS (Continued) B. Funding Policy Active plan members in the Plan are required to contribute 7.00 percent of their covered salary. The City of Moorpark is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the Ca1PERS Board of Administration. The required employer contribution rate for the fiscal year ended June 30, 2001, was zero percent. The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by Ca1PERS. C. Annual Pension Cost For the year ended June 30, 2001, the City of Moorpark's annual pension cost and its actual contributions were $2,104. The City also contributed $177,861 on behalf of employees. Employees directly contributed $0. Total contributions were $179,965. The required contribution for the year ended June 30, 2001, was determined as part of the June 30, 1997, actuarial valuation using the entry age normal actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions included (a) 8.25 percent investment rate of return (net of administrative expenses); (b) projected salary increases that vary by duration of service ranging from 4.5 percent to 14.95 percent and (c) 4.5 percent cost -of- living adjustments. Both (a) and (b) include an inflation component of 4.5 percent. The actuarial value of the Plan's assets were determined using a technique that smoothes the effect of short-term volatility in the market value of investments over a two to five year period depending on the size of investment gains and/or losses. The Plan's unfunded accrued liability (or excess assets) is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at June 30, 1998, was three years. Three -Year Trend Information Annual Pension Cost Fiscal Year Ending (APC) 6/30/99 $91,092 6/30/00 $18,373 6/30/01 $2,104 Funded Status of the Plan Percentage of APC Contributed 22 100% 100% 100% Net Pension Obligation $0 $0 $0 Entry Age UAAL As a Unfunded Covered Normal Actuarial (Overfunded) Payroll Accrued Value of Liability Valuation Date Liability Assets (UAAL) 6/30/98 $2,359,258 $3,504,389 ($1,145,131) 6/30/99 $3,105,530 $4,399,396 ($1,293,866) 6/30/00 $3,667,082 $5,053,792 ($1,386,710) 22 100% 100% 100% Net Pension Obligation $0 $0 $0 Annual UAAL As a Funded Covered % of Ratio Payroll Payroll 148.5% $2,119,784 (54.02)% 141.7% $2,067,768 (62.57)% 137.8% $2,291,864 (60.51)% CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #8 - PROPERTY AND EQUIPMENT A summary of changes in general fixed assets for the year ended June 30, 2001 follows: Land Buildings and structures Improvements other than buidlings Office furniture and equipment Other equipment Totals Balance Beginning of Year Additions $ 9,941,039 $1,859,114 3,712,775 5,395,709 1,104,425 4,732 1,067,081 Balance End of Deletions Year $ 991,240 $ 10,808,913 55,532 3,657,243 5,395,709 1,109,157 1,067,081 $21,221,029 $1,863,846 $ 1,046,772 $ 22,038,103 NOTE #9 - INTERFUND TRANSACTIONS A summary of operating transfers and interfund receivables /payables as of and for the year ended June 30, 2001, is included in the following table: General Fund Special Revenue Funds Community Development fund State Gas Tax Fund Endowment Local Transportation Fund Assessment District Fund Park Development Areas of Contribution Fund Low- and Moderate - Income Housing Fund State and Federal Assistance Solid Waste Total Special Revenue Funds Capital Projects Funds Redevelopment Agency Fund Debt Service Fund Total Operating Operating Due From Due To Transfers In Transfers Out Other Funds Other Funds $ 822,098 $ 709,559 $ 660,761 $ 12,022 214,691 41,033 119,689 259,597 39,886 589,870 177,937 42,461 176,000 42,461 508,380 141,320 46,879 42,075 1,217,939 963,418 42,461 218,461 737,216 484,761 878,536 508,380 12,022 2,918,573 2,918,573 715,244 715,244 23 w I- N CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #10 — COMMITMENTS AND CONTINGENCIES A. Commitments The City has contracted with the County of Ventura for various services most notably law enforcement. These service contracts are renegotiated annually and cancelable by the City or the County on May 31 of each year after 30 days notice has been given. The aggregate of these and other various contractual commitments total approximately $3,398,539 for the year ended June 30, 2001. B. Contingencies There are certain legal actions pending against the City which management considers incident to normal operations, some of which seek substantial monetary damages. In the opinion of management, after consultation with counsel, the ultimate resolution of such actions is not expected to have a significant effect on the financial position or the results of operations of the City. The City has received State and Federal funds for specific purposes that are subject to review by the grantor p agencies. Although, such audits could generate expenditure disallowance's under the terms of the grants, it is believed that any disallowed amounts will not be material. NOTE #I1— CONDUIT DEBT — REVENUE BONDS The City sponsored a revenue bond program during the year ended June 30, 1985, under which $20,000,000 of Single- Family Residential Mortgage Revenue Bonds were issued. The Single - Family Mortgage program is designed to provide funds to acquire mortgage loans on single- family residences located in the City. These bonds are secured by a pledge of all loans receivable advanced from the bond proceeds by the trustee, First Interstate Bank of California, and are serviced from payments on the loans to the Trustee. During the year ended June 30, 1995, the outstanding mortgages in this program were sold, the proceeds were used to establish an irrevocable trust to defease the bonds at April 1, 1995, and the program was discontinued. The City sponsored a revenue bond program during the year ended June 30, 1986, under which $22,600,000 of Multi- Family Housing Revenue Bonds were issued. The program was designed to assist in making low- and moderate -cost rental housing available in the City. The City was guaranteed that 10 percent of the units of the project financed with the bonds are made available to persons and families with incomes not exceeding 80 *` percent of the County median income and another 10 percent of the units for persons and families with income not exceeding 50 percent of the County median income. The units were available under this program for a 30- year period. These bonds were secured by a letter of credit issued by Citibank, N.A., dated December 23, 1985. The program is administered by the Trustee, Bank of America. The bonds were refinanced during the year ended June 30, 1992. These bonds were refinanced in June 1, 1999, with California Statewide Community Development Authority. The City was removed as the conduit as of June 30, 2001. 24 .ter CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #11— CONDUIT DEBT — REVENUE BONDS (Continued) The City Council, serving as the Industrial Development Authority of the City of Moorpark, issued $9,300,000 of Industrial Revenue Bonds during the year ended June 30, 1986. The bonds were issued to finance the development and construction of manufacturing facilities for the Kavlico Corporation. These bonds are secured by a standby letter of credit issued by Bank of America. Dai Ichi Kangyo Bank of California serves as the Trustee for these bonds. The unpaid principal balance on such bonds is $6,795,000 at June 30, 2001. 0 The City of Moorpark Mobile Home Park Revenue Bonds (Villa Del Arroyo) Series 2000 A and the City of w Moorpark Mobile Home Park Subordinate Revenue Bonds (Villa Del Arroyo) Series 2000 B were issued in the 1W amounts of $12,740,000 and $2,635,000 respectively. Both issuances were dated May 19, 2000. The Series A bonds were issued to fund a loan to Augusta Homes, a California non - profit public benefit corporation to finance the acquisition of the Villa Del Arroyo Mobile Home Park. The Series B bonds were issued for the same purpose but are subordinate to the Series A bonds. The total bonds outstanding at June 30, 2001, total $15,215,000. .ft Each of the bond programs described above do not constitute and indebtedness of the City, and there is neither a W legal nor a moral obligation on the part of the City to make payments on such bonds from any source other than the revenues and assets pledged therefor. The programs are completely administered by the Trustees without any involvement by the City. Accordingly, these programs and the bonds issued thereunder have been excluded from the accompanying general - purpose financial statements. NOTE #12 — SPECIAL ASSESSMENT BONDS On April 1, 1994, the City sponsored the issuance of special assessment bonds to finance certain capital improvements for the Mission Bell Plaza project. These bonds, totaling $2,595,000, of which $735,000 and $1,475,000 mature in 2013 and 2023, respectively, were issued under the 1915 Improvement Bond Act and are obligations against the properties in the assessment district. The special assessment, which is collected with other property related taxes as part of the secured property tax bill for properties in the assessment district, will be forwarded to an independent bank that serves as the paying agent. These bonds do not constitute an indebtedness of the City, and the City is not liable for their repayment. Accordingly, these special assessment bonds payable have been excluded from the accompanying general - purpose financial statements. The unpaid .� principal balance on such bonds is $1,940,000 at June 30, 2001. 25 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #12 — SPECIAL ASSESSMENT BONDS (Continued) On July 1, 1997, the City issued bonds to finance the acquisition and construction of public improvements within the City of Moorpark Community Facilities District No. 97 -1. These bonds, totaling $7,645,000, were issued pursuant to the Mello -Roos Community Facilities Act of 1982. The bonds mature on September 1, 2008 with interest payable at rates ranging from 4.4 percent to 6 percent per annum on March 1 and September 1 of each year commencing March 1, 1998. The City is not liable under any circumstance for the repayment of the debt, but is only acting as agent for the property owners in collecting the assessments and special taxes, forwarding collections to fiscal agents to pay the bondholders and initiating foreclosure proceedings, if appropriate. Accordingly, these bonds payable have been excluded from the accompanying general - purpose financial statements. The unpaid principal balance is $7,415,000 at June 30, 2001. Seven properties in the assessment district, which had been zoned for commercial use prior to the City's incorporation, are currently used for residential, commercial and agricultural purposes. At various times, the City has advanced monies and contributed assessments on these properties form the Los Angeles Avenue Area of Contribution Special Revenue Fund to the paying agent, which the paying agent has used to purchase certain securities which have been placed in trust accounts to be used solely to provide for principal of and interest on the seven properties' proportionate share of the bonds through maturity. Notes receivable, secured by deeds of - trust and various accounts receivable, have been established for these advances with interest accruing at a variable rate equivalent to the rate at which the City earns on funds deposited in the State Treasurer's Local Agency Investment Fund or 7 percent, whichever is less. Under the terms of the original promissory notes, the notes and accrued interest are due at the earlier of (1) sale of the property, (2) conversion of the property to a commercial use or (3) the maturity of the notes in March 2023. Subsequent to June 30, 1998, the notes were amended and the repayment terms changed as follows: the notes and accrued interest are due August 2029. NOTE #13 — RISK MANAGEMENT A. Description of Self- Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 84 California public entities and is organized under a joint powers agreement pursuant to California Government Code 6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self - insured losses, to purchase excess insurance or reinsurance, and to arrange for group- purchased insurance for property and other coverages. The Authority's pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the y Board of Directors. The Board operates through a 9- member Executive Committee. mo 26 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #13 —RISK MANAGEMENT (Continued) B. Self - Insurance Programs of the Authority General Liability: Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Costs are spread to members as follows: the first $20,000 of each occurrence is charged directly to the member; costs from $20,001 to $500,000 are pooled based on a member's share of costs under $20,000; costs from $500,001 to $5,000,000 are pooled based on payroll. Costs of covered claims above $5,000,000 are currently paid by reinsurance. The protection for each member is $50,000,000 per occurrence and $50,000,000 annual aggregate. Workers Compensation: The City also participates in the workers compensation pool administered by the Authority. Pool deposits and retrospective adjustments are valued in a manner similar to the General Liability pool. The City of Moorpark is charged for the first $25,000 of each claim. Costs are pooled above that level to $50,000. Costs from $50,001 to $100,000 per claim are pooled based on the member's losses under its retention level. Costs between $100,001 and $500,000 per claim are pooled based on payroll. Costs in excess of $500,000 are paid by excess insurance purchased by the Authority. The excess insurance provides coverage to statutory limits. C. Purchased Insurance The City of Moorpark participates in the all -risk property protection program of the Authority. This ■r insurance protection is underwritten by several insurance companies. The City of Moorpark property is a currently insured according to a schedule of covered property submitted by the City of Moorpark to the Authority. Total all -risk property insurance coverage is $8,548,437. There is a $5,000 per loss deductible. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. .� D. Adequacy of Protection During the past three fiscal (claims) years none of the above programs of protection have had settlements or M judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled 4r or insured liability coverage from coverage in the prior year. 27 W 40 .r 40 YM CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #14 — FUND BALANCES The Redevelopment Agency has designated $233,678 of fund balance in the Redevelopment Agency Capital Projects Fund for business incentives and future capital projects. NOTE #15 —PROPOSITION 62 The California Supreme Court recently upheld the constitutionality of Proposition 62, a 1986 initiative, which requires voter approval of all new or increased taxes. The likelihood and amount of such an adverse effect upon the financial position of the City is currently unknown and has not been reflected in the general - purpose financial statements. NOTE #16 — PROPOSITION 218 The voters recently approved the "Right to Vote on Taxes Act" (Proposition 218) which limits the City's ability to levy general taxes and benefit assessments without voter approval. The actual effects of Proposition 218 are unclear at this time. The initiative would also require voter approval by November 1998, to continue to collect annually in the General Fund general taxes (such as utility, transient occupancy, and the like) that are subject to the proposition requirements. NOTE #17 — PRIOR PERIOD ADJUSTMENTS The agency has recorded a prior period adjustment of $(484,761) in the Capital Projects Fund to record prior .. year interest due to the General Fund from the Long -Term Advance from the City. The City recorded a prior period adjustment of $(171,821) in the Capital Projects Fund to record prior year pass -thru liability. The City *" recorded a prior period adjustment of $990,622 in the Capital Projects Fund and $45,000 in the Special Revenue Fund to record land held for resale, which had been recorded in the General Fixed Asset Account Group. The City recorded a prior period adjustment of $55,502 in the Gas Tax Fund to implement new accounting standards. M M EM ii CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #18 — RESIDUAL EQUITY TRANSFERS The following residual equity transfers were due to the State Supplemental Law Enforcement Grant, which was accounted for in the General Fund now accounted for in the State and Federal Assistance Fund: General Fund Special Revenue Funds: State and Federal Assistance Total 29 Residual Equity Residual Equity Transfer In Transfer (Out) $ - $ (46,082) 46,082 $ 46,082 $ (46,082) CITY OF MOORPARK COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS JUNE 30, 2001 (With Comparative Totals for June 30, 2000) ASSETS Cash and Investments Restricted cash and investments Accounts and interest receivable, net Taxes receivable Notes and loans receivable Due from other funds Other assets Land held for resale Total Assets LIABILITIES Liabilities: Accounts payable and accrued liabilities Deposits, principally from developers Due to other funds Deferred revenue Total Liabilities FUND BALANCES Fund balances: Reserved for encumbrances Reserved for receivables due after one year, net Reserved for land held for resale Reserved for low /moderate income housing Unreserved: Designated Undesignated Total Fund Balances Total Liabilities and Fund Balances State Traffic Community Affordable Gas Safety Development Housing Tax $ 247,703 $ 840,527 $ 644,875 $ 1,668,973 681 149,742 24,332 13,670 36,121 $ 272,035 $ 854,878 $ 680,996 $ 1,818,715 3,111 589,479 3,111 589,479 285 51,750 495 20,150 495 20,150 36,121 26,542 268,639 213,649 644,380 1,772,023 268,924 265,399 680,501 1,798,565 $ 272,035 $ 854,878 $ 680,996 $ 1,818,715 30 (CONTINUED) Low and Street and Traffic State and Moderate Areas of Safety Park Assessment Federal Endowment Income Housing Contributions Development Development District Assistance $ 7,242,446 $ 1,581,484 $ 8,308,227 $ 291,230 11,677 120,549 467,778 42,461 6,195,804 $ 2,142,964 $ 646,771 $ 2,568,945 93,444 4,664 193,899 22,417 119,868 2,801 1,744,256 $ 7,242,446 $ 3,737,519 $ 8,830,143 $ 6,315,672 $ 2,239,209 $ 673,852 $ 2,762,844 5,733 1,490,265 9 52,019 94,192 593,191 25,000 176,000 42,461 188,351 119,868 2,801 30,733 1,678,616 119,877 230,820 136,653 593,191 4,500 396,056 120,549 467,778 1,744,256 1,832,626 51,668 10,135 119,868 2,801 7,242,446 4,855 6,287,693 6,075,927 1,953,920 527,064 2,169,653 7,242,446 3,706,786 7,151,527 6,195,795 2,008,389 537,199 2,169,653 $ 7,242,446 $ 3,737,519 $ 8,830,143 $ 6,315,672 $ 2,239,209 $ 673,852 $ 2,762,844 31 CITY OF MOORPARK COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS JUNE 30, 2001 (With Comparative Totals for June 30, 2000) ASSETS Cash and Investments Restricted cash and investments Accounts and interest receivable, net Taxes receivable Notes and loans receivable Due from other funds Other assets Land held for resale Total Assets LIABILITIES Liabilities: Accounts payable and accrued liabilities Deposits, principally from developers Due to other funds Deferred revenue Total Liabilities FUND BALANCES Fund balances: Reserved for encumbrances Reserved for receivables due after one year, net Reserved for land held for resale Reserved for low /moderate income housing Unreserved: Designated Undesignated Total Fund Balances Total Liabilities and Fund Balances Local Transportation Solid Transit Waste TOTALS 2001 2000 $ 204,876 $ 699,139 $ 32,992,734 $ 25,399,887 25,000 263,508 2,555 18,709 766,601 1,288,916 22,417 37,043 785,119 781,248 42,461 2,160,752 31 1,744,256 1,500,000 $ 207,431 $ 717,848 $ 36,353,588 $ 31,431,385 19,852 9,403 2,877,899 1,174,072 25,000 26,500 218,461 2,61 5,687 187,579 498,599 442,587 207,431 9,403 3,619,959 4,258,846 540,936 216,830 747,117 596,046 1,744,256 1,500,000 1,832,626 1,570,425 109,002 708,445 27,868,694 23,180,236 708,445 32,733,629 27,172,539 $ 207,431 $ 717,848 $ 36,353,588 $ 31,431,385 32 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2001 (With Comparative Totals for the Fiscal Year Ended June 30, 2000) 33 State Traffic Community Affordable Gas Safety Development Housing Tax REVENUES Property taxes Other taxes $ 662,865 Utility franchise fees Building and safety fees $ 924,610 Maintenance assessments Subventions and grants 12,375 Planning and public works fees 1,321,470 Development fees Charges for current services 2,230 Fines and forfeitures $ 148,886 Interest 11,858 $ 35,884 103,561 Other 874 Total Revenues 160,744 2,258,455 35,884 769,530 EXPENDITURES Current: General government Public safety 31,251 Public services 44,806 1,970,258 12,730 735,774 Parks and recreation Capital outlay 11,112 59,078 Total Expenditures 76,057 1,981,370 12,730 794,852 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 84,687 277,085 23,154 (25,322) OTHER FINANCING SOURCES (USES) Operating transfers in Proceeds from sale of city property 200 Loss from sale of city property Operating transfers out (214,691) (41,033) Total Other Financing Sources (Uses) (214,491) (41,033) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 84,687 62,594 23,154 (66,355) Fund Balances, Beginning of Year 184,237 202,805 657,347 1,809,418 Prior Period Adjustment 55,502 Fund Equity Transfer/Residual Equity Transfer Fund Balances, End of Year $ 268,924 $ 265,399 $ 680,501 $ 1,798,565 33 Low and Street and Traffic Moderate Areas of Safety Park Assessment Endowment Income Housing Contributions Development Development District (CONTINUED) State and Federal Assistance $ 991,261 $ 2,533,960 $ 1,229,317 $ 1,377,940 93,444 $ 984,601 $ 2,181,308 310 15,029 1,020 3,249 3,500 390,116 $ 204,525 497,953 294,120 104,820 29,967 153,373 12,867 12,509 435 2,571,424 217,392 1,489,524 2,828,080 1,440,090 1,426,620 1,142,494 119,689 508,380 (15,000) (259,597) (141,320) (139,908) 352,060 589,870 7,780 (177,937) (46,879) 7,780 411,933 (46,879) 2,431,516 462,842 (1,673,994) 2,768,076 1,326,345 198,395 (279,534) 4,810,930 3,198,944 8,825,521 3,427,719 682,044 338,804 2,403,105 45,000 46,082 $ 7,242,446 $ 3,706,786 $ 7,151,527 $ 6,195,795 $ 2,008,389 $ 537,199 $ 2,169,653 34 17,424 106,610 (402) 8,870 818,296 43,788 5,000 222 766,655 3,163,920 46,134 121,303 55,207 1,313,937 106,610 3,163,518 60,004 121,525 1,640,158 1,375,149 2,571,424 110,782 (1,673,994) 2,768,076 1,318,565 (213,538) (232,655) 119,689 508,380 (15,000) (259,597) (141,320) (139,908) 352,060 589,870 7,780 (177,937) (46,879) 7,780 411,933 (46,879) 2,431,516 462,842 (1,673,994) 2,768,076 1,326,345 198,395 (279,534) 4,810,930 3,198,944 8,825,521 3,427,719 682,044 338,804 2,403,105 45,000 46,082 $ 7,242,446 $ 3,706,786 $ 7,151,527 $ 6,195,795 $ 2,008,389 $ 537,199 $ 2,169,653 34 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2001 (With Comparative Totals for the Fiscal Year Ended June 30, 2000) 35 M h 3 0 e 3 0 Local TOTALS Transportation Solid Transit Waste 2001 2000 REVENUES Property taxes $ 399,572 Other taxes $ 662,865 560,746 Utility franchise fees $ 202,402 202,402 194,497 Building and safety fees 924,610 392,106 Maintenance assessments 6,132,478 5,147,137 Subventions and grants $ 242,931 12,914 1,346,265 2,143,114 Planning and public works fees 1,321,470 1,315,327 Park development fees 2,181,308 133,543 Charges for current services 24,713 43,302 35,146 Fines and forfeitures 155,635 129,571 Interest 11,070 38,531 1,875,778 1,114,457 Other 26,685 17,073 Total Revenues 278,714 253,847 14,872,798 11,582,289 EXPENDITURES Current: General government 3,300 Public safety 48,675 57,292 Public services 133,106 3,873,836 3,468,328 Parks and recreation 239,423 1,011,300 701,175 Capital outlay 1,291 4,771,982 4,967,266 Total Expenditures 239,423 134,397 9,705,793 9,197,361 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 39,291 119,450 5,167,005 2,384,928 OTHER FINANCING SOURCES (USES) Operating transfers in 1,217,939 752,120 Proceeds from sale of city property 7,980 Loss from sale of city property (15,000) Operating transfers out (39,886) (42,075) (963,418) (133,838) Total Other Financing Sources (Uses) (39,886) (42,075) 247,501 618,282 EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES (595) 77,375 5,414,506 3,003,210 Fund Balances, Beginning of Year 595 631,070 27,172,539 24,169,329 Prior Period Adjustment 100,502 Fund Equity Transfer /Residual Equity Transfer 46,082 Fund Balances, End of Year $ - $ 708,445 $ 32,733,629 $ 27,172,539 35 M h 3 0 e 3 0 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2001 REVENUES Othertaxes Utility franchise fees Building and safety fees Maintenance assessments Subventions and grants Planning and public works fees Development fees Charges for current services Fines and forfeitures Interest Other Total Revenues EXPENDITURES Current: General government Public safety Public services Parks and recreation Capital outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Proceeds from sale of city property Loss from sale of city property Operating transfers out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES Fund Balances, Beginning of Year Prior Period Adjustment Fund Equity Transfer/Residual Equity Transfer Fund Balances, End of Year Traffic Community Safety Development Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 1,122,491 $ 924,610 $ (197,881) 12,450 12,375 (75) 1,321,470 1,321,470 1,647,654 (1,647,654) $ 105,000 $ 148,886 $ 43,886 3,300 11,858 8,558 100 (100) 108,400 160,744 52,344 2,782,595 2,258,455 (524,140) 37,580 31,251 6,329 54,856 44,806 10,050 2,528,901 1,970,258 558,643 16,162 11,112 5,050 92,436 76,057 16,379 2,545,063 1,981,370 563,693 15,964 84,687 68,723 237,532 277,085 39,553 200 200 (214,691) (214,691) (214,691) (214,491) 200 $ 15,964 84,687 $ 68,723 $ 22,841 62,594 $ 39,753 184,237 202,805 $ 268,924 36 $ 265,399 (CONTINUED) State Affordable Gas Housing Tax Endowment Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 598,090 $ 662,865 $ 64,775 $ 698,598 $ (698,598) $ 2,181,308 2,181,308 2,230 2,230 $ 37,000 $ 35,884 $ (1,116) 78,000 103,561 25,561 360,000 390,116 30,116 874 874 37,000 35,884 (1,116) 676,090 769,530 93,440 1,058,598 2,571,424 1,512,826 14,694 12,730 1,964 768,373 735,774 32,599 143,853 59,078 84,775 14,694 12,730 1,964 912,226 794,852 117,374 22,306 23,154 848 (236,136) (25,322) 210,814 1,058,598 2,571,424 1,512,826 119,689 119,689 (41,033) (41,033) (260,000) (259,597) 403 (41,033) (41,033) (140,311) (139,908) 403 $ 22,306 23,154 $ 848 $ (277,169) (66,355) $ 210,814 $ 918,287 2,431,516 $ 1,513,229 657,347 1,809,418 4,810,930 55,502 $ 680,501 $ 1,798,565 $ 7,242,446 37 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2001 REVENUES Othertaxes Utility franchise fees Building and safety fees Maintenance assessments Subventions and grants Planning and public works fees Park development fees Charges for current services Fines and forfeitures Interest Other Total Revenues EXPENDITURES Current: General government Public safety Public services Parks and recreation Capital outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Proceeds from sale of city property Loss from sale of city property Operating transfers out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES Fund Balances, Beginning of Year Prior Period Adjustment Fund Equity Transfer/Residual Equity Transfer Fund Balances, End of Year 130,563 Low and 23,953 (402) 402 484,780 Moderate 484,780 8,835,012 Areas of 5,671,092 Income Housing 615,343 106,610 Contributions 8,835,012 3,163,518 5,671,494 Variance Variance Favorable 110,782 645,925 Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 1,887,008 $ 991,261 $ (895,747) (15,000) 310 310 $ 70,000 $ 204,525 $ 134,525 254,000 497,953 243,953 10,200 12,867 2,667 352,060 664,700 80,200 217,392 137,192 2,141,008 1,489,524 (651,484) 130,563 106,610 23,953 (402) 402 484,780 484,780 8,835,012 3,163,920 5,671,092 615,343 106,610 508,733 8,835,012 3,163,518 5,671,494 (535,143) 110,782 645,925 (6,694,004) (1,673,994) 5,020,010 508,380 508,380 (15,000) 15,000 (141,320) 141,320 352,060 664,700 $ (535,143) 462,842 $ 1,310,625 _L __(L694,004 (1,673,994) $ 5,020,010 3,198,944 8,825,521 45,000 $ 3,706,786 W. $ 7,151,527 U. lip s rlr �I wr r� rr aw W tt rr r W Im tp rw r� op wte. (CONTINUED) Street and Traffic 8,870 24 Safety Park Assessment Development 5,000 Development District 10,000 Variance Variance Variance 766,655 Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 3,135,001 $ 2,533,960 $ (601,041) $ 920,527 $ 1,229,317 $ 308,790 $ 1,306,675 $ 1,377,940 $ 71,265 101,000 93,444 (7,556) 15,000 15,029 29 3,249 3,249 136,700 294,120 157,420 49,600 104,820 55,220 15,750 29,967 14,217 12,509 12,509 435 435 3,271,701 2,828,080 (443,621) 1,071,127 1,440,090 368,963 1,337,425 1,426,620 89,195 8,894 8,870 24 1,071,752 818,296 253,456 5,000 5,000 10,000 222 9,778 846,361 766,655 79,706 156,061 46,134 109,927 379,812 121,303 258,509 87,136 55,207 31,929 169,955 60,004 109,951 389,812 121,525 268,287 2,005,249 1,640,158 365,091 3,101,746 2,768,076 (333,670) 681,315 1,318,565 637,250 (667,824) (213,538) 454,286 734,800 589,870 (144,930) 7,780 7,780 (177,917) (177,937) 20 7,780 7,780 556,883 411,933 (144,910) $ 3,101,746 2,768,076 $ (333,670) $ 681,315 1,326,345 $ 645,030 $ (110,941) 198,395 $ 309,376 3,427,719 682,044 338,804 $ 6,195,795 $ 2,008,389 39 $ 537,199 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2001 REVENUES Other taxes Utility franchise fees Utility franchise fees Maintenance assessments Subventions and grants Planning and public works fees Park development fees Charges for current services Fines and forfeitures Interest Other Total Revenues EXPENDITURES Current: General government Public safety Public services Parks and recreation Capital outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Proceeds from sale of city property Loss from sale of city property Operating transfers out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES Fund Balances, Beginning of Year Prior Period Adjustment Fund Equity Transfer/Residual Equity Transfer Fund Balances, End of Year State and $ 984,601 Local $ 364,543 Federal $ (121,612) Transportation 1,020 Assistance 17,400 Transit 7,313 Variance 3,500 Variance Favorable 77,500 Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 1,726,614 $ 984,601 $ (742,013) $ 364,543 $ 242,931 $ (121,612) 1,020 1,020 17,400 24,713 7,313 3,500 3,500 77,500 153,373 75,873 11,070 11,070 1,804,114 1,142,494 (661,620) 381,943 278,714 (103,229) 22,741 17,424 5,317 30,077 43,788 (13,711) 41,205 41,205 303,752 239,423 64,329 2,613,293 1,313,937 1,299,356 20,900 20,900 2,707,316 1,375,149 1,332,167 324,652 239,423 85,229 (903,202) (232,655) 670,547 57,291 39,291 (18,000) 18,000 (18,000) (26,054) (46,879) (20,825) (57,886) (39,886) 18,000 (8,054) (46,879) (38,825) (57,886) (39,886) 18,000 $ (911,256) (279,534) $ 631,722 $ (595) 2,403,105 46,082 $ 2,169,653 (595) $ - 595 8 y 5 40 W aw «w. 214,190 Solid 214,190 274,511 48,675 225,836 Waste (133,106) 4,608,110 Total 734,274 Variance 1,206, 318 1,011,300 Variance 1,300 1,291 Favorable 12,738,309 4,771,982 Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) (9,550) 119,450 129,000 $ 598,090 $ 662,865 $ 64,775 $ 187,000 $ 202,402 $ 15,402 187,000 202,402 15,402 1,122,491 924,610 (197,881) 7,947,809 6,132,478 (1,815,331) 8,652 12,914 4,262 2,213,259 1,346,265 (866,994) (42,075) (42,075) (819,656) 1,321,470 1,321,470 (42,075) (42,075) 2,181,308 2,181,308 507,348 1,680,054 43,302 (1,636,752) _L _L51,6251 77,375 $ 105,000 155,635 50,635 10,288 38,531 28,243 1,092,138 1,875,778 783,640 10,300 26,685 16,385 205,940 253,847 47,907 14,956,141 14,872,798 (83,343) 214,190 214,190 274,511 48,675 225,836 133,106 (133,106) 4,608,110 3,873,836 734,274 1,206, 318 1,011,300 195,018 1,300 1,291 9 12,738,309 4,771,982 7,966,327 215,490 134,397 81,093 18,827,248 9,705,793 9,121,455 (9,550) 119,450 129,000 (3,871,107) 5,167,005 9,038,112 872,489 1,217,939 345,450 7,980 7,980 (15,000) 15,000 (42,075) (42,075) (819,656) (963,418) 138,918 (42,075) (42,075) 52,833 247,501 507,348 _L _L51,6251 77,375 $ 129,000 $ (3,818,274) 5,414,506 $ 9,545,460 631,070 27,172,539 100,502 46,082 $ 708,445 $ 32,733,629 41 CITY OF MOORPARK COMBINING BALANCE SHEET ALL CAPITAL PROJECTS FUNDS JUNE 30, 2001 (With Comparative Totals for June 30, 2000) ASSETS Cash and Investments Accounts and interest receivable, net Taxes receivable Notes and loans receivable Due from other funds Other assets Land held for resale Total Assets LIABILITIES Liabilities: Accounts payable and accrued liabilities Deposits, principally from developers Due to other funds Total Liabilities FUND BALANCES Fund balances: Reserved for encumbrances Reserved for receivables due after one year, net Reserved for land held for resale Unreserved: Designated for business incentives Designated for capital projects Undesignated Total Fund Balances Total Liabilities and Fund Balances City Hall Police Facilities Equipment Redevelopment Building Fee Fund Replacement Agency $ 465,089 $ 1,074,157 $ 137,308 $ 2,120,379 76,006 3,493,320 10,590 $ 465,089 $ 1,074,157 $ 137,308 $ 6,690,917 6,681 342,396 4,045 484,761 6,681 831,202 3,493,320 990,622 233,678 465,089 1,074,157 130,627 1,142,095 465,089 1,074,157 130,627 5,859,715 $ 465,089 $ 1,074,157 $ 137,308 $ 6,690,917 E,N TOTALS 2001 2000 $ 3,796,933 $ 5,995,714 76,006 263,030 31,494 3,493,320 3,737,740 10,590 10,086 990,622 " $ 8,367,471 $ 10,038,064 349,077 160,591 4,045 2,370 484,761 481,977 837,883 644,938 372 3,493,320 3,737,740 990,622 233,678 233,678 3,906,378 2,811,968 1,514,958 7,529,588 9,393,126 $ 8,367,471 $ 10,038,064 43 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2001 (With Comparative Totals for the Fiscal Year Ended June 30, 2000) REVENUES Property taxes Othertaxes Maintenance assessments Charges for current services Fines and forfeitures Interest Other Total Revenues EXPENDITURES Current: General government Public safety Public services Capital outlay Debt service Principal Interest Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES Fund Balances, Beginning of Year Prior Period Adjustment Fund Balances, End of Year City Hall Police Facilities Equipment Redevelopment Building Fee Fund Replacement Agency $ 253,068 $ 26,085 51,781 $ 13,864 $ 438,440 99,825 26,085 304,849 13,864 538,265 900 2,900 271 271 542 294,429 184,999 1,859,113 900 2,900 186,083 2,153,542 25,185 301,949 (172,219) (1,615,277) (737,216) (737,216) 25,185 301,949 (172,219) (2,352,493) 439,904 772,208 302,846 7,878,168 334,040 $ 465,089 $ 1,074,157 $ 130,627 $ 5,859,715 44 x TOTALS 2001 2000 4,071 $ 1,589,397 271 300 $ 253,068 61,083 2,044,112 108,532 1,755 530,170 491,074 99,825 4,529,251 883,063 2,252,141 4,071 21,198 271 12,044,051 294,971 1,386,922 2,044,112 271,131 2,500,000 350,000 2,343,425 4,529,251 (1,460,362) (2,277,110) 60,500 (737,216) (535,351) (737,216) (474,851) (2,197,578) (2,751,961) 9,393,126 12,044,051 334,040 101,036 $ 7,529,588 $ 9,393,126 45 CITY OF MOORPARK STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2001 REVENUES Property taxes Maintenance assessments Interest Other Total Revenues EXPENDITURES Current: General government Public safety Public services Capital outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES Fund Balances, Beginning of Year Prior Period Adjustment Fund Balances, End of Year City Hall Police Facilities Building Fee Fund Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 304,610 $ 253,068 $ (51,542) $ 21,000 $ 26,085 $ 5,085 40,000 51,781 11,781 21,000 26,085 5,085 344,610 304,849 (39,761) 900 900 2,900 (2,900) 5,000 5,000 900 900 5,000 2,900 2,100 20,100 25,185 5,085 339,610 301,949 (37,661) $ 20,100 25,185 $ 5,085 $ 339,610 439,904 $ 465,089 Ertl 301,949 $ (37,661) 772,208 $ 1,074,157 �r Equipment Redevelopment Replacement Agency Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Total Variance Favorable Actual (Unfavorable) $ 609,220 $ 253,068 $ (356,152) $ 15,000 $ 13,864 $ (1,136) $ 375,000 $ 438,440 $ 63,440 527,000 530,170 3,170 107,000 99,825 (7,175) 107,000 99,825 (7,175) 15,000 13,864 (1,136) 482,000 538,265 56,265 1,243,220 883,063 (360,157) 300 271 29 2,400 4,071 (1,671) 250 271 (21) 10,500 271 10,229 600 542 58 2,574,758 294,429 2,280,329 2,575,958 294,971 2,280,987 191,933 184,999 6,934 1,868,714 1,859,113 9,601 2,252,580 2,044,112 208,468 193,083 186,083 7,000 4,443,472 2,153,542 2,289,930 4,841,438 2,343,425 2,498,013 (178,083) (172,219) 5,864 (3,961,472) (1,615,277) 2,346,195 (3,598,218) (1,460,362) 2,137,856 (737,216) (737,216) (737,216) (737,216) (737,216) (737,216) (737,216) (737,216) $ (178,083) (172,219) $ 5,864 $ (3,961,472) (2,352,493) $ 1,608,979 $ (3,598,218) (2,197,578) $ 1,400,640 302,846 7,878,168 9,393,126 334,040 334,040 $ 130,627 $ 5,859,715 $ 7,529,588 47 CITY OF MOORPARK STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND - DEVELOPER DEPOSIT FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2001 Fund Name Cash and investments Total Assets Balance Net Net Balance June 30, 2000 Additions Reductions June 30, 2001 $ 1,659,442 $ 245,819 $ 1,413,623 $ 1,659,442 $ - $ 245,819 $ 1,413,623 Accounts payable 170,308 170,308 Developer deposits 1,489,134 75,511 1,413,623 Total Liabilities $ 1,659,442 $ - $ 245,819 $ 1,413,623 M. STATISTICAL SECTION This page left blank intentionally. 8 w ift y .r 0 m so E CITY OF MOORPARK REVENUES BY SOURCE ALL GOVERNMENTAL FUND TYPES LAST TEN FISCAL YEARS Governmental Fund types includes General Fund and all Special Revenue, Debt Service and Capital Project Funds. NOTE: 1991 was the first year the Redevelopment Agency received tax increment. In 1992, the County of Ventura impounded tax increment for Redevelopment Agency and then released it in 1993. Source: City of Moorpark 49 Taxes and Licenses Revenue Use of Fiscal Assessments Permits and From Other Maintenance Money & Other Total Year (See Note 1) Fees Agencies Assessments Property Revenue Revenue 1992 $ 2,616,716 $ 2,218,310 $ 725,609 $ 923,830 $ 1,420,077 $ 446,767 $ 8,351,309 1993 3,937,065 3,157,288 951,352 1,811,483 1,316,507 1,916,469 13,090,164 1994 3,902,251 2,717,299 1,966,343 3,592,238 1,356,679 1,128,888 14,663,698 1995 4,390,156 2,501,078 789,852 940,377 1,314,740 1,157,615 11,093,818 1996 4,282,265 2,672,673 1,021,458 2,991,121 2,320,057 1,746,631 15,034,205 1997 6,349,631 4,693,256 1,373,726 1,641,622 1,984,162 493,938 16,536,335 1998 4,879,322 4,587,138 1,170,287 1,630,996 1,988,731 623,362 14,879,836 1999 5,486,444 4,033,723 849,089 3,856,911 2,691,285 709,444 17,626,896 2000 6,099,037 4,377,998 4,325,305 3,197,752 2,384,356 946,795 21,331,243 2001 7,072,806 2,925,322 4,312,485 8,670,249 3,088,182 516,546 26,585,590 Governmental Fund types includes General Fund and all Special Revenue, Debt Service and Capital Project Funds. NOTE: 1991 was the first year the Redevelopment Agency received tax increment. In 1992, the County of Ventura impounded tax increment for Redevelopment Agency and then released it in 1993. Source: City of Moorpark 49 CITY OF MOORPARK EXPENDITURES BY FUNCTION ALL GOVERNMENTAL FUND TYPES LAST TEN FISCAL YEARS Fiscal General Public Public Parks & Capital Debt Year Government Safety Services Recreation Outlay Service Total 1992 $ 1,015,922 $ 2,102,183 $ 2,227,984 $ 706,939 $ 2,119,893 $ 18,352 $ 8,191,273 1993 1,251,186 2,220,034 2,609,431 706,997 3,714,679 126,414 10,628,741 1994 1,502,504 2,417,915 2,913,513 989,482 9,218,073 554,029 17,595,516 1995 1,332,372 2,518,495 2,457,737 1,175,997 2,342,077 1,694,708 11,521,386 1996 1,530,824 2,618,063 2,533,477 1,263,862 5,740,952 2,582,130 16,269,308 1997 1,386,598 2,807,382 3,960,313 1,336,029 3,452,115 1,125,199 14,067,636 1998 1,631,787 3,026,724 3,599,360 1,381,058 1,081,814 1,268,704 11,989,447 1999 1,993,878 3,102,834 3,148,264 1,385,376 1,965,474 4,156,354 15,752,180 2000 1,168,049 3,476,781 5,070,009 1,383,146 5,355,271 3,564,305 20,017,561 2001 1,619,062 3,968,812 5,047,343 1,851,648 6,879,243 2,767,770 22,133,878 Governmental Fund Types include General Fund and all Special Revenue, Debt Service and Capital Projects Funds. Source: City of Moorpark 50 d CITY OF MOORPARK ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Source: Ventura County Assessor 51 Total Fiscal Net Secured Net Unsecured Net Assessed Percent Homeowner's Year Roll Roll Roll Change Exemptions 1992 $ 1,590,604,539 $ 56,025,905 $ 1,646,630,444 6.2% $ 33,355,481 1993 1,674,603,922 57,669,820 1,732,273,742 5.2% 33,507,656 1994 1,673,307,475 57,005,483 1,730,312,958 -0.1% 33,943,139 1995 1,732,877,452 56,810,214 1,789,687,666 3.4% 36,000,192 1996 1,784,220,963 63,819,253 1,848,040,216 3.3% 37,421,267 1997 1,848,655,764 68,944,812 1,917,600,576 3.8% 38,289,239 1998 1,920,177,164 70,911,851 1,991,089,015 3.8% 39,313,581 1999 2,035,487,530 85,464,519 2,120,952,049 6.5% 40,240,720 2000 2,149,505,500 84,834,286 2,234,339,786 5.3% 40,687,060 2001 2,421,104,221 92,634,149 2,513,738,370 12.5% 40,786,802 Source: Ventura County Assessor 51 CITY OF MOORPARK SECURED TAX CHARGE AND DELINQUENCIES MOST RECENT FIVE YEAR HISTORY Source: California Municipal Statistics, Inc. 52 Amount Percent Fiscal Secured Delinquent Delinquent Year Tax Charge June 30 June 30 1997 $ 1,158,953 24,705 2.1% 1998 1,191,918 21,807 1.8% 1999 1,374,741 25,687 1.9% 2000 1,410,082 25,054 1.8% 2001 1,573,688 67,292 4.3% Source: California Municipal Statistics, Inc. 52 d CITY OF MOORPARK DIRECT AND OVERLAPPING BONDED DEBT AS OF FISCAL YEAR 1999 -2000* 1999 -2000 Assessed Valuation: Redevelopment Incremental Valuation: Adjusted Assessed Valuation: $ 2,211,432,867 184,257,216 $ 2,027,175,651 Ratios to 1999 -2000 Assessed Valuation: Direct Debt 0.00% Total Direct and Overlapping Tax and Assessment Debt 0.51% Ratio to Adjusted Assessed Valuation Combined Total Debt 1.19% State School Building Aid Repayable as of 6/30/00 0 * 1999 -2000 is the most current information available. ** Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non - bonded capital lease obligations. Source: California Municipal Statistics, Inc. 53 Percent Debt Direct and Overlapping Tax and Assessment Debt: Applicable as 6/30/00 Ventura County Flood Control District Zone No. 3 8.012% $ 120,981 Metropolitan Water District 0.222% 1,220,145 Ventura County Waterworks District No. 1 100.000% 125,000 Conejo Valley Unified School District 0.021% 6,300 City of Moorpark Commujity Facilities District No. 97 -1 100.000% 7,525,000 City of Moorpark 1915 Act Bonds 100.000% 2,320,000 Total Direct and Overlapping Tax and Assessment Debt $11,317,426 Overlapping General Fund Obligation Debt: 4.236% $ 1,502,509 Ventura County General Fund Obligations 4.236% 5,328,888 Ventura County Pension Obligations 4.236% 123,268 Ventura County Superintendent of Schools COPS 4.237% 585,130 Ventura County Community College District COPS 91.108% 5,184,045 Ventura County Library District Authority 6.826% 40,956 Total Overlapping General Fund Obligation Debt $12,764,796 Combined Total Debt ** $24,082,222 Ratios to 1999 -2000 Assessed Valuation: Direct Debt 0.00% Total Direct and Overlapping Tax and Assessment Debt 0.51% Ratio to Adjusted Assessed Valuation Combined Total Debt 1.19% State School Building Aid Repayable as of 6/30/00 0 * 1999 -2000 is the most current information available. ** Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non - bonded capital lease obligations. Source: California Municipal Statistics, Inc. 53 CITY OF MOORPARK • COMPUTATION OF LEGAL DEBT MARGIN AND W BREAKDOWN OF GENERAL PROPERTY TAX LEVY a Legal Debt Margin as of June 30, 2001 v ON Assessed Valuation: W Secured property assessed value: $ 2,421,104,221 Nk Bonded Debt Limit (15% of Assessed Value) $ 363,165,633 M Amount of Debt Subject to Debt Limit Total Bonded Debt $ 9,195,000 Less CRA Tax Allocation Bonds 9,195,000 Amount of Debt Subject to Debt Limit: 0 Breakdown of General Property Tax Levy In accordance with the California State Constitution as amended by Proposition 13 in 1978, property taxes are limited to $1 per $100 of valuation unless additional levies are approved by the general electorate. Most local public agencies receive a share of the "general levy" ($1 per $100 of valuation) in accordance with State statutes. The following is a breakdown of the proportional shares of the "General Levy ": Moorpark Unified School District 33.50 %, County of Ventura General Fund 17.20% Fire Protection District 15.10% Education Revenue Augmentation 5.50% W E.R.A.F 93 -94 Shift 8.77% City of Moorpark 6.50% Ventura Community College 5.80 %` Ventura Co. Superintendent of Schools 2.60% County Library 1.67% County Flood Zone #3 1.26% NP Moorpark Mosquito Abatement 0.91% Calleguas Municipal Water 0.90% Ventura County Flood Control Admin 0.26% Ventura College Child Care 0.03% Total 100.00% W rlr �w Source: City of Moorpark, Ventura County Assessor and HdL Coren & Cone 54 CITY OF MOORPARK CITY POPULATION LAST TEN YEARS tom. Source: City of Moorpark, and State Department of Finance �' 55 Percent Year Population Change 1992 26,294 1.5% 1993 26,713 1.6% 1994 27,170 1.7% 1995 27,099 -0.3% 1996 27,752 2.4% 1997 28,377 2.3% 1998 29,300 3.3% 1999 29,589 0.4% 2000 29,727 0.4% 2001 32,150 8.2% Source: City of Moorpark, and State Department of Finance �' 55 CITY OF MOORPARK BUILDING PERMIT VALUATION LAST TEN FISCAL YEARS Source: City of Moorpark, 56 Number Number Fiscal Residential of Commercial of Total Permit Year Valuation Permits Valuation Permits Valuation 1992 $ 26,464,476 282 $ 3,350,958 45 $ 29,815,434 1993 $ 9,182,124 326 $ 7,488,066 50 $ 16,670,190 1994 $ 26,189,940 250 $ 11,374,256 55 $ 37,564,196 1995 $ 55,828,983 250 $ 2,575,542 37 $ 58,404,525 1996 $ 45,807,776 443 $ 6,869,232 65 $ 52,677,008 1997 $ 24,274,609 364 $ 27,460,489 85 $ 51,735,098 1998 $ 6,331,779 258 $ 18,950,107 131 $ 25,281,886 1999 $ 3,112,703 213 $ 6,538,260 90 $ 9,650,963 2000 $ 45,298,666 386 $ 9,786,014 59 $ 55,084,680 2001 $ 76,864,038 581 $ 7,046,028 69 $ 83,910,066 Source: City of Moorpark, 56 CITY OF MOORPARK F„a LARGEST PROPERTY OWNERS PER ASSESSED VALUATION 2001 w Source: Hdl Coren & Cone and Ventura County Assessor 57 Assessed Value of Property Owner Property Autosafe Airbag Limited Partnership $ 75,872,715 Security Capital Pacific Trust 31,037,773 Kavilco Corporation 21,741,700 Laars Inc 20,267,350 Mission Bell Plaza Phase 2 20,208,563 Jakie M. Galiher 18,678,516 G -S Partnership 17,912,277 Toll CA Limited Partnership 16,621,901 Kevin F. & Joanne O. Sawai 14,556,130 Mission Bell Plaza Phase 1 14,297,706 w Source: Hdl Coren & Cone and Ventura County Assessor 57 CITY OF MOORPARK MISCELLANEOUS STATISTICS Year of Incorporation: 1983 Form of Government: Council - Manager General Law City Most Recent Population Estimate: 0 Registered Voters: 15,243 City Employees: 75 Fire Protection: Number of Stations: 2 Number of Firefighters: 9 Police Protection: Number of Stations: 1 Number of Police Officers: 23 Number of Support Personnel: 2 58 Parks & Recreation: Number of Parks 14 Park Acreage 153 acres Education (Number of Schools): High Schools 2 Middle Schools 2 Elementary Schools 6 Number of Community Facilities City Civic Buildings Libraries 1 Community Centers 2 Senior Centers 1 Gym I Activity Rooms for Rentals 4 9 rr rr REDEVELOPMENT AGENCY OF CITY OF MOORPARK, CALIFORNIA (A Component Unit of the City of Moorpark, California) ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2001 en d E REDEVELOPMENT AGENCY OF THE CITY OF MOORPAIM CALIFORNIA (A Component unit of the City of Moorpark, California) ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2001 CONTENTS PAGE Independent Auditors' Report I All Fund Types and Account Groups Balance Sheet 2 All Governmental Fund Types Statement of Revenues, Expenditures and Changes In Fund Balances 4 Statement of Revenues, Expenditures and Changes In Fund Balances — Budget and Actual 5 Notes to Financial Statements 8 Report on Compliance and On Internal Control Over Financial Reporting Based on an 19 Audit of Financial Statements Performed in Accordance With Government Auditing Standards 9 Vavrinek, Trine, Day & Co., LLP Certified Public Accountants & Consultants INDEPENDENT AUDITORS' REPORT The Honorable Board of Directors Redevelopment Agency of The City of Moorpark, California We have audited the accompanying component unit financial statements of the Redevelopment Agency of the City of Moorpark, California (the "Agency ") as of and for the year ended June 30, 2001, as listed in the accompanying table of contents. These component unit financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these component unit financial statements based on our audit. 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 Governmental Auditing Standards, issued by the Controller of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the component unit financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the component unit financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the component unit financial statements referred to above revised as described in Note #10, present fairly, in all material respects, the financial position of the Agency, as of June 30, 2001, and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note #10 to the financial statements, the Redevelopment Agency of the City of Moorpark, California's June 30, 2001, financial statements reported several balances which have been reclassified. This discovery was made subsequent to the issuance of the financial statements. The financial statements have been restated to reflect this correction. In accordance with Government Auditing Standards, we have also issued our report dated November 20, 2001, on our consideration of the Agency's internal control over financial reporting, and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Ao Rancho Cucamonga, California November 20, 2001, except for Note #10, as to which the date is February 8, 2002. M 8270 Aspen Street Rancho Cucamonga, CA 91730 Tel: 909.466.4410 Fax: 909.466.4431 www.vtdcpa.com FRESNO • LAGUNA HILLS • PLEASANTON • RANCHO CUCAMONGA • SACRAMENTO • SAN JOSE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2001 ASSETS AND OTHER DEBITS Cash and investments Restricted cash and investments Accounts and interest receivable, net Taxes receivable Loans and notes receivable Other assets Due from the City of Moorpark Land held for resale Property and equipment Amount available for debt service Amount to be provided for retirement of general long -term debt Total Assets LIABILITIES Liabilities: Accounts payable and accrued liabilities Due to the city of moorpark Deposits, principally from developers Tax allocation bonds payable Total Liabilities FUND EQUITY AND OTHER CREDITS Fund balances and other credits: Investment in general fixed assets Fund balances: Reserved for encumbrances Reserved for receivables due after one year, net Reserved for land held for resale Reserved for debt service Reserved for low /moderate income housing Unreserved: Designated for business incentives Unreserved - Undesignated Total Fund Equity and Other Credits Total Liabilities and Fund Equity GOVERNMENTAL FUND TYPES Special Capital Debt Revenue Projects Service $ 1,581,484 $ 2,120,379 $ 803,959 291,230 76,006 10,381 24,279 120,549 3,493,320 10,590 12,022 1,744,256 990,622 $ 3,737,519 $ 6,690,917 $ 850,641 5,733 342,396 447,332 484,761 25,000 4,045 30,733 831,202 447,332 4,500 120,549 3,493,320 1,744,256 990,622 403,309 1,837,481 233,678 1,142,095 3,706,786 5,859,715 403,309 $ 3,737,519 $ 6,690,917 $ 850,641 P" 6, PW to The accompanying notes are an integral part of these financial statements. aw 2 W A* ACCOUNT GROUPS General General -Long TOTALS (Memorandum Only) $ 3,701,863 803,959 377,617 24,279 3,613,869 10,590 12,022 2,734,878 $ 2,026,357 2,026,357 $ 403,309 403,309 8,791,691 8,791,691 $ 2,026,357 $ 9,195,000 $ 22,500,434 795,461 484,761 29,045 9,195,000 9,195,000 9,195,000 10,504,267 2,026,357 2,026,357 4,500 3,613,869 2,734,878 403,309 1,837,481 233,678 1,142,095 2,026,357 11,996,167 $ 2,026,357 $ 9,195,000 $ 22,500,434 ki This page left blank intentionally. 3 w ■. .. 9 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK I" STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2001 40 6 OTHER FINANCING SOURCES (USES) Operating transfers in Loss from sale of agency property Operating transfers out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES Fund Balances, Beginning of Year Prior Period Adjustment Fund Balances, End of Year 508,380 878,536 GOVERNMENTAL FUND TYPES (15,000) (15,000) Special Capital Debt TOTALS (15,000) Revenue Projects Service (Memorandum Only) REVENUES Property taxes $2,541,900 $ 2,541,900 Interest $ 204,525 $ 438,440 41,058 684,023 Other 12,867 99,825 112,692 Total Revenues 217,392 538,265 2,582,958 3,338,615 EXPENDITURES Current: Public services 106,610 294,429 613,910 1,014,949 Capital outlay 1,859,113 1,859,113 Debt service Principal 2,210,369 2,210,369 Interest 557,401 557,401 Total Expenditures 106,610 2,153,542 3,381,680 5,641,832 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 110,782 (1,615,277) (798,722) (2,303,217) 40 6 OTHER FINANCING SOURCES (USES) Operating transfers in Loss from sale of agency property Operating transfers out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES Fund Balances, Beginning of Year Prior Period Adjustment Fund Balances, End of Year 508,380 878,536 1,386,916 (15,000) (15,000) (141,320) (737,216) (508,380) (1,386,916) 352,060 (737,216) 370,156 (15,000) 462,842 (2,352,493) (428,566) (2,318,217) 3,198,944 7,878,168 831,875 11,908,987 45,000 334,040 379,040 $ 3,706,786 $ 5,859,715 $ 403,309 $ 9,969,810 The accompanying notes are an integral part of these financial statements. 4 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2001 SPECIAL REVENUE Variance Favorable w Budget Actual (Unfavorable) a. REVENUES Property taxes Interest Other Total Revenues EXPENDITURES Current: Public services Capital outlay Debt service Principal Interest Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Loss from sale of agency property Operating transfers out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES Fund Balances, Beginning of Year Prior Period Adjustment Fund Balances, End of Year $ 70,000 $ 204,525 $ 134,525 10,200 12,867 2,667 80,200 217,392 137,192 130,563 106,610 23,953 484,780 484,780 615,343 106,610 508,733 (535,143) 110,782 645,925 373,100 508,380 135,280 (15,000) (15,000) (153,100) (141,320) 11,780 220,000 352,060 132,060 $ (315,143) 462,842 $ 777,985 3,198,944 45,000 $ 3,706,786 The accompanying notes are an integral part of these financial statements. 5 CAPITAL PROJECTS DEBT SERVICE (Continued) 2,574,758 294,429 Variance 613,910 Variance 1,868,714 1,859,113 Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 1,884,800 $ 2,541,900 $ 657,100 $ 375,000 $ 438,440 $ 63,440 61,900 41,058 (20,842) 107,000 99,825 (7,175) 482,000 538,265 56,265 1,946,700 2,582,958 636,258 2,574,758 294,429 2,280,329 613,910 (613,910) 1,868,714 1,859,113 9,601 2,532,576 2,210,369 322,207 911,326 557,401 353,925 4,443,472 2,153,542 2,289,930 3,443,902 3,381,680 62,222 (3,961,472) (1,615,277) 2,346,195 (1,497,202) (798,722) 698,480 765,300 878,536 113,236 (737,216) (737,216) (508,380) (508,380) (737,216) (737,216) 765,300 370,156 (395,144) $ (3,961,472) (2,352,493) $ 1,608,979 $ (731,902) (428,566) $ 303,336 7,878,168 831,875 334,040 $ 5,859,715 $ 403,309 0 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2001 REVENUES Property taxes Interest Other Total Revenues EXPENDITURES Current: Public services Capital outlay Debt service Principal Interest Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Loss from sale of agency property Operating transfers out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES Fund Balances, Beginning of Year Prior Period Adjustment Fund Balances, End of Year TOTAL (Memorandum Onl Variance Favorable Budget Actual (Unfavorable) $ 1,884,800 $ 2,541,900 $ 657,100 506,900 684,023 177,123 117,200 112,692 (4,508) 2,508,900 3,338,615 829,715 2,705,321 1,014,949 1,690,372 2,353,494 1,859,113 494,381 2,532,576 2,210,369 322,207 911,326 557,401 353,925 8,502,717 5,641,832 2,860,885 (5,993,817) (2,303,217) 3,690,600 1,138,400 1,386,916 248,516 (15,000) (15,000) (153,100) (1,386,916) (1,233,816) 985,300 (15,000) (1,000,300) $ (5,008,517) (2,318,217) $ 2,690,300 11,908,987 379,040 $ 9,969,810 The accompanying notes are an integral part of these financial statements. 7 F 0 9 En REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS �` JUNE 30, 2001 NOTE #1— NATURE AND OPERATIONS OF THE AGENCY The Redevelopment Agency of the City of Moorpark, California (the Agency) was created by the City of Moorpark, California (the City) City Council Ordinance No. 87, adopted on March 18, 1987. The City Council appointed the Board of Directors and established bylaws of the Agency on May 20, 1987, by Resolution No. 87- 387. The City Council sits as the Board of Directors of the Agency. The Agency was established pursuant to the Community Redevelopment Law of the State of California Health and Safety Code. For financial reporting purposes, the Agency is considered to be a component financial reporting unit of the City, however, for operational and financing purposes, the Agency functions as a separate legal entity, distinct form the City of Moorpark, California. In accordance with accounting principles generally accepted in the United States of America, the financial activities of the Agency are included in the Annual Financial Report of the City of Moorpark, California because of the financial and administrative oversight aspects of the City Council's involvement in the Agency's activities. NOTE #2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounts of the Agency are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts, which comprise its assets, liabilities, fund equity, revenues and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in the financial statements of this report. Fund types and account groups used by the Agency are as follows: A. Fund Types and Account Groups • Special Revenue Fund — This fund is used to account for revenues derived from specific sources that are usually required by law or administrative regulation to be accounted for in separate funds. * Capital Projects Fund — this fund is used to account for all revenues and expenditures which are not accounted for by the Debt Service Fund and Special Revenue Fund, including acquisition of properties, costs of site improvements and other costs of benefit to project areas and administrative expenditures incurred in sustaining Agency activities. • Debt Service Fund — This fund is used to account for the payment of interest and principal on its long- term obligations. Principal sources of revenue for this fund are property taxes and investment earnings. • General Fixed Assets Account Group — This account group is used to account for property and equipment purchased or received by the Agency. "` • General Long -Term Debt Account Group — This account group is used to account for the Agency's outstanding long -term indebtedness in a separate self - balancing group of accounts. 51 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All governmental fund types are accounted for using the modified accrual basis of accounting. The revenues from these funds are recognized when they become measurable and available as net current assets. Measurable means the amount of the transaction can be determined and available means the amount is collected within the current period or soon enough thereafter (generally sixty days) to be used to pay liabilities of the current period. Amounts, which could not be measured or were not available, were not accrued as revenue in the current fiscal year. Those revenues susceptible to accrual are property taxes and interest revenue. M 6j Expenditures are generally recognized when incurred under the modified accrual basis of accounting. An exception to this rule is principal and interest on general long -term debt, which is not recognized as a fund liability until it is due. Financial resources are appropriated in the fund responsible for repaying debt in the period in which maturing debt principal and interest must be paid. C. Fixed Assets and Long -Term Obligations Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Public domain ( "infrastructure ") general fixed assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, have not been capitalized. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair market value on the date donated. Long -term obligations expected to be financed from governmental funds are accounted for in the General Long -Term Debt Account Group, not in governmental funds. .� The two account groups are not funds. They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long -term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long -Term Obligations Account Group. MW NP REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Measurement Focus All government funds are accounted for on a spending or financial flow measurement focus, which means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance is their net current assets, which is considered only to be a measure of available spendable resources. Governmental fund operating statements present a summary of sources and uses of available spendable resources during a period by presenting increases and decreases in net current assets. In those cases when a governmental fund records a long -term receivable or other non - current asset, undesignated fund balance is reduced to reflect the fact that this amount is not yet available. E. Budgetary Data The Board of Directors approves each year's budget submitted by the Executive Director prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the Board of Directors. Supplemental appropriations, where required during the period, are also approved by the Board of Directors. In most cases, expenditures may not exceed appropriations at the function level. At fiscal year -end, all operating budget appropriations lapse. Overall, budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America (GAAP). F. Land Held for Resale Land held for resale in the Low and Moderate - Income Housing Special Revenue Fund represents land purchased by the Agency for investment purposes. Such land is valued at the lower of cost or estimated net realizable value (as determined by a disposition and development agreement between the Agency and a developer) and has been offset by a reservation of fund balance to indicate that assets constitute future capital projects and are not available spendable resources. G. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in the governmental funds. Open encumbrances are recorded as reservations of fund balance since the commitments will be paid by subsequent years' budget appropriations. Encumbrances do not �. constitute expenditure or liabilities. 10 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Property Taxes The Agency receives incremental property taxes on property within its project area over a base - assessed valuation on the date the project area was established. The duties of assessing and collecting property taxes are performed by the Ventura County Assessor and Tax Collector, respectively. Tax levies cover the period from July 1 to June 30 of each year. All tax liens attach annually on the first day in January preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property, as it exists on that date. Secured property taxes are levied against real property and are due and payable in two equal installments. The first installment is due on November 1 and becomes delinquent if not paid by December 10. The second installment is due on February 1 and becomes delinquent if not paid by April 10. Unsecured personal property taxes are due on July 1 each year. These taxes become delinquent if not paid by August 31. The Agency records incremental property tax revenues in the fiscal year to which they are due rather than at the related lien date. Delinquent property taxes at year -end (June 30) if any are reserved to the extent they are deemed to be uncollectible within 60 days thereafter. I. Total (Memorandum Only Columns LM 0 The combined financial statements include certain "memorandum only" totals, which represent arp mathematical summations of account totals by fund type and account group and do not reflect the W elimination of interf ind transactions. Such totals are for information purposes only and do not present consolidated financial information. r■ J. Fund Equity r.s Fund equity consists of reserved and unreserved amounts. Reserved fund equity represents that portion of a fund balance, which has been appropriated for expenditure or is legally segregated for a specific future use. The remaining portion is unreserved. —, A portion of unreserved fund balance may be designated to indicate plans for financial resource utilization in a future period, such as for general contingencies or capital projects. Such plans are subject to change and may never be legally authorized or result in expenditure. 11 O_ REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS �. JUNE 30, 2001 NOTE #3 — CASH AND INVESTMENTS At June 30, 2001, the Agency's investments are stated at fair value. The Agency's cash, investments and restricted cash and investments consist primarily of investments in the State Treasurer's Local Agency Investment Fund, certificates of deposit and other money market investments. Interest income earned on cash and investments is allocated to the various funds based on each fund's average cash and investment balance. A. Cash and Investments with Fiscal Agent A portion of the Agency's funds are also held by trustees or fiscal agents and pledged to the payment or a.„ security of certain bonds. The California Government Code provides that these monies, unless otherwise required by statute, may be invested in accordance with the ordinances, resolutions or indentures, which specify the types of investments the trustees or fiscal agents may make. B. Cash and Investments Cash and non - negotiable certificates of deposit are classified in three categories of custodial risk as follows: Category 1: Includes deposits that are insured or collateralized with securities held by the Agency or its agent in the Agency's name. Category 2: Includes deposits that are collateralized with securities held by the pledging financial 12 institution's trust department or agent in the Agency's name. Category 3: Deposits, which are uncollaterlized, or collateralized with securities held by the pledging financial institution or by its trust department or agent but not in the Agency's name. Investments are also classified in three categories of custodial risk as follows: y Category 1: Insured or registered, securities held by the entity or its agent in the Agency's name. Category 2: Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the Agency's name. Category 3: Uninsured and unregistered, with securities held by the counterparty's trust department or agent but not in the Agency's name. Investments in pools managed by other governments or in mutual funds are not required to be categorized. 12 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #3 — CASHAND INVESTMENTS (Continued) The Agency's deposits and investments at June 30, 2001 are categorized below: Deposits: Cash Investments: Local Agency Investment Fund (LAIF) (1) Investments held in trust by fiscal agents guaranteed investment agreement with Transamerica, maturity date 10/1/2018 Money Market Fund Common Stock - Disney Total investments * Not required to be categorized. BANK BALANCE - CATEGORY BANK CARRYING 1 2 3 BALANCES AMOUNTS $100,000 $ - $418,524 $ 518,524 $ 518,524 BANK BALANCE - CATEGORY 1 2 3 CARRYING FAIR VALUE VALUE $ 3,179,497 $ 3,186,611 771,100 771,100 32,859 31,959 $ 3,842 3,842 3,842 $ 3,842 $ - $ - $ 3,987,298 $ 3,993,512 (1) The management of the State of California Pooled Money Investment Account (generally referred to as LAIF) has indicated to the Agency that as of June 30, 2001, the carrying amount of the pool was $54,496,268,373 and the estimated market value for the pool (including accrued interest) was $55,175,428,123. The Agency's proportionate share of that value is $3,179,497. Included in LAIF's investment portfolio are certain derivative securities or similar products in the form of structured notes totaling $1,517,548,000, and asset - backed securities totaling $937,996,000. LAIF's (and the Agency's) exposure to risk (credit, market or legal) is not currently available. Fair Value of Investments Accounting pronouncement GASB Statement 31 generally applies to investments in external investment pools, investments purchased with maturities greater than one year, mutual funds, and certain investment pools. Generally, governmental entities need to report the "fair value" changes for these investments at year -end and records these gains or losses on their income statement. 13 8 y 0 W ab N REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #3 — CASH AND INVESTMENTS (Continued) State of California State Treasurer's Local Agency Investment Fund (LAIF): The Agency holds an investment in LAIF that is subject to being adjusted to "fair value ". The Agency is required to disclose its methods and assumptions used to estimate the fair value of its holdings in LAIF. The Agency relied upon information provided by the State Treasurer in estimating the Agency's fair value position of its holding in LAIF. The Agency had a contractual withdrawal value of $3,179,497 whose pro -rata share of fair value was estimated by the state Treasurer to be $3,186,611. The fair value change in this investment for the year came to an amount that was not material for presentation in the financial statements. The State Treasurer's Local Agency Investment Fund ( "LAIF ") is a governmental investment pool managed and directed by the California State Treasurer and is not registered with the Securities and Exchange Commission. An oversight committee, comprised of California State officials and various participants, provide oversight to the management of the fund. The daily operations and responsibilities of LAIF fall under the auspices of the State Treasurer's office. The Agency is a voluntary participant in the investment pool. NOTE #4 — LAND HELD FOR RESALE The following is a summary of changes in land held for resale during the year ended June 30, 2001: Balance Balance Beginning of End of Year Additions Deletions Year Totals $ 1,500,000 $ 1,234,878 $ 2,734,878 NOTE #5 — PROPERTYAND EQUIPMENT A summary of changes in general fixed assets during the year ended June 30, 2001 is as follows: Land Building and structures Equipment Totals ii Balance Balance Beginning of End of Year Additions Deletions Year $ 1,096,409 $ 1,859,114 $ 991,240 $ 1,964,283 78,558 55,532 23,026 34,316 4,732 39,048 $ 1,209,283 $ 1,863,846 $1,046,772 $ 2,026,357 14 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #6 — GENERAL LONG -TERM DEBT The following is a schedule of changes in long -term debt for the fiscal year ended June 30, 2001. A. Employee Compensated Absences B. Long -Term Advance from the City C. 1999 Tax Allocation Bonds Totals A. Em llooyee Compensated Absences Pam Balance Beginning of Year Additions $ 18,900 1,865,369 9,540,000 Balance End of Deletions Year $ 18,900 1,865,369 345,000 $ 9,195,000 $11,424,269 $ - $ 2,229,269 $ 9,195,000 In accordance with accounting principles generally accepted in the United States of America, the Agency recognizes the long -term portion of accumulated employee compensated absences, if any, in the Long -Term Debt Account Group. B. Advances from the City of Moorpark The City's General Fund has paid for services and start-up expenditures incurred by the Redevelopment Agency (short-term advances). The balance of these short-term operating advances amounted to $1,865,369 at the beginning of the fiscal year and were completely repaid during the 2000 -2001 fiscal year. C. 1999 Tax Allocation Bonds In 1999, the Redevelopment Agency issued a $9,860,000 aggregated principal amount of Moorpark Redevelopment Project 1999 Tax Allocation Refunding Bonds (the Bonds). The purpose of the Bonds was to advance refund the Agency's previously issued $10,000,000 Moorpark Redevelopment Project, 1993 Tax Allocation Bonds. The purpose of the 1993 Bonds was to finance a portion of the costs of implementing the Redevelopment Plan, including low -and moderate - income housing projects. The 1999 Bonds bear interest at rates ranging from 3.05 percent to 4.875 percent per annum, payable semi - annually on April 1 and October 1 of each year, commending on October 1, 1999 and are subject to mandatory sinking fund redemption commencing on October 1, 2009 and on each October 1 thereafter. The Bonds are payable from and secured by the tax revenues to be derived from the project area. 15 W 0 I REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #6— GENERAL LONG- TERMDEBT (Continued) The bonds are secured by all property tax increment revenues, which are deposited in the Debt Service Fund. Cash and investments in the custody of the fiscal agent are restricted by the bond resolutions for payment of principal and interest on the Tax Allocation Bonds. In addition, the bond resolutions require retention of funds held by the fiscal agent prior to use for other than debt service. The Redevelopment Agency is in compliance with the covenants contained in debt indentures, which require the establishment of certain specific accounts for the Tax Allocation Bonds. Debt service payments on the 1999 Tax Allocation Refunding Bonds payable will be made from the Debt Service Fund. Annual debt service requirements to maturity are as follows: Fiscal Year Ending June 30, Principal Interest Total 2002 $ 355,000 $ 408,638 $ 763,638 2003 365,000 396,124 761,124 2004 380,000 382,710 762,710 2005 395,000 368,369 763,369 2006 405,000 353,068 758,068 Thereafter 7,295,000 2,526,935 9,821,935 Total $ 9,195,000 $4,435,844 $ 13,630,844 D. Prior Year's Debt Defeasance In prior years, the Agency defeased the 1993 tax allocation bond issue by creating separate irrevocable trust funds. New debt has been issued and the proceeds have been used to purchase U.S. government securities that were placed in the trust funds. The investments and fixed earnings from the investments are sufficient to fully service the defeased debt until the debt is called or matures. For financial reporting purposes, the debt has been considered defeased and therefore removed as a liability from the Agency's General Long- Term Debt Account Group. As of June 30, 2001, the amount of defeased debt outstanding but removed from the General Long -Terms Debt Account Group amounted to $8,400,000. "' 16 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #7—LOW- AND MODERATE- INCOME HOUSING SET ASIDE The California Health and Safety Code Section 33334.2 requires a redevelopment agency to use at least 20 percent of tax increment revenues generated by a redevelopment project area to increase and improve the supply of low -and moderate - income housing in the community. Accordingly, the Agency's unspent commitment for its low- and moderate - income housing program amounted to $1,837,481 and has been reflected as a reservation of fund balance in the Agency's Special Revenue Fund. NOTE #8 — PASS- THROUGHAGREEMENTS The Agency has entered into agreements with various governmental agencies to pass through a portion of tax increment received in the project area. Such transactions are recorded within the Agency's funds. The various agencies and the tax increment passed through to those agencies for the year ended June 30, 2001 are as follows: Ventura County Superintendent of Schools $ 1,639 Moorpark Unified School District 136,599 Ventura County Community College District 23,744 Ventura County 260,695 Ventura County Fire District 168,193 Ventura County Flood Administration 2,988 Ventura County Flood Zone #3 15,456 Total $ 609,314 In addition, the Agency was not subject to transfer any tax increment to the State's Education Revenue Augmentation Fund (ERAF) for the year ended June 30, 2001. NOTE #9 — PRIOR PERIOD ADJUSTMENTS The Agency has recorded a prior period adjustment of $(484,761) in the Capital Projects Fund to record prior year interest due to the General Fund from the Long -Term Advance from the City. The Agency recorded a prior period adjustment of $(171,861) in the Capital Projects Fund to record prior year pass -thru liability. The City recorded a prior period adjustment of $990,662 in the Capital Projects Fund and $45,000 in the Special Revenue Fund to record land held for resale, which had been recorded in the General Fixed Asset Account Group. 17 0 D FI s REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE #10 — SUBSEQUENT DISCOVERY OF FACTS Subsequent to issuing the financial statements, it was discovered that several classifications of the Balance Sheet, the Statement of Revenues, Expenditures and Changes in Fund Balance, and the Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual changed. The financial statements have been reissued to include these changes in classification. The effect of these changes is detailed below: Before Restatement After Restatement Special Capital Debt Special Capital Debt Revenue Projects Service Revenue Projects Service BALANCESHEET ASSETS Cash and investments Due from other funds Amount available for debt service LIABILITIES Due to other funds FUND EQUITY AND OTHER CREDITS Reserve for debt service Reserve for low /mod income housing STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE REVENUES Property taxes Interest EXPENDITURES Public service Capital outlay STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL REVENUES Property taxes - budget Interest - budget EXPENDITURES Principal - budget Interest - budget OTHER FINANCING SOURCES Operating tranfers in - budget $ 1,576,629 $ 2,127,510 1,887 $ 401,422 1,887 401,422 1,832,626 $ 1,581,484 $ 2,120,379 1,837,481 $ 403,309 403,309 2,582,959 2,541,900 141,320 41,058 111,465 757,118 106,610 613,910 1,850,055 1,859,113 18 1,501,700 276,000 336,200 61,000 765,300 1,884,800 61,900 2,532,576 911,326 765,300 ti i Vavrinek, Trine, Day & Co., LLP VALUE THE DIFFERENCE Certified Public Accountants & Consultants REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING M BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Board of Directors Redevelopment Agency of the City of Moorpark, California We have audited the financial statements Redevelopment Agency of the City of Moorpark, California, as of and for the year ended June 30, 2001 and have issued our report thereon, dated November 20, 2001. 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 Controller of the United States. Compliance As part of obtaining reasonable assurance about whether. the financial statements of the City of Moorpark, California, are free of material misstatements, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions included those provisions of laws and regulations identified in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the State Controller and as interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, issued by the Governmental Accounting and Auditing Committee of the California Society of Certified Public Accountants. 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 the following instances of noncompliance that are required to be reported under Government Auditing Standards. Health and Safety Code Section 33334.3(d) requires that if planning and administrative expenditures were made from the Housing Fund the Agency must prepare a written determination (each year) showing that planning and administrative expenditures were necessary for the production, improvement, or preservation of low and moderate income housing. The City of Moorpark, California did not prepare such a written determination. 8270 Aspen Street Rancho Cucamonga, CA 9173011el: 909.466.4410 Fax: 909.466.4431 www.vtdcpa.com Am FRESNO • LAGUNA HILLS • PLEASANTON • RANCHO CUCAMONGA • SACRAMENTO • SAN JOSE Internal Control Over Financial Reporting In planning and performing our audit, we considered the Redevelopment Agency of the City of Moorpark, California's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we considered to be material weaknesses. This report is intended for the information of the board of Directors, management, and the State Controller and is not intended to be and should not be used by anyone other than those specified parties. Rancho Cucamonga, California November 20, 2001 20 t F W WL U"60111, ri Vavrinek, Trine, Day & Co., LLP VALUE THE DIFFERENCE Certified Public Accountants & Consultants November 20, 2001 Honorable Members of the City Council City of Moorpark Moorpark, California We have audited the financial statements of the City of Moorpark, California (the City) for the year ended June 30, 2001, and have issued our report dated November 20, 2001. In planning and performing our audit of the financial statement of the City, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. We have not considered the internal control structure since the date of our report. During our audit we noted certain matters involving the internal control structure and other operational and accounting matters that are presented for your consideration. These comments and recommendations are intended to improve the internal control structure or result in other operational efficiencies and are summarized below. CURRENT YEAR FINDINGS AND RECOMMENDATIONS Investment Compliance Finding: During our review of the investment policy we noted that it was not reviewed and adopted by the City Council during the fiscal year ending June 30, 2001. As required by State Government Code, the investment policy must be reviewed and adopted by the City Council each fiscal year. The policy was reviewed in October of 2001; however, this was subsequent to the fiscal year end. Recommendation: The City should develop a system to ensure that the investment policy is reviewed and adopted at once each fiscal year. City Response: Because of staff shortages, presentation of the investment policy to the City Council was delayed by four months. The policy will now be presented to the City Council annually. 8270 Aspen Street Rancho Cucamonga, CA 91730 Tel: 909.466.4410 Fax: 909.466.4431 www.vtdcpa.com FRESNO • LAGUNA HILLS • PLEASANTON • RANCHO CUCAMONGA • SACRAMENTO • SAN JOSE City of Moorpark, California Management Letter Page 2 CURRENT YEAR FINDINGS AND RECOMMENDATIONS (Continued Finding: During our testing of the investment portfolio we noted that the Agency maintains a small investment in Disney Corporation stock. The stock was originally acquired several years ago as collateral for a note receivable that defaulted. The fact that the stock has not been liquidated appears to be a violation of the adopted investment policy, as the policy does not provide for investments in corporate stock. Recommendation: The Agency should liquidate its investment in the stock and invest the proceeds in an approved investment vehicle. If the Agency determines it necessary to retain the stock, the investment policy should be amended to provide for such and investment. City Response: The Disney Corporation stock was sent to the Agency's security dealer in January 2002 and will be sold by June 30, 2002. Appropriations Limit Calculation Finding: During our review of the Appropriations Limit calculation we noted an error in the formula used to calculate the annual inflation adjustment. This resulted in an adopted limit that was $81,908 higher than would have been calculated with the proper adjustment factor. The City's actual appropriations subject to the limit did not exceed either the adopted limit or the limit that would have been calculated with the proper factor. Recommendation: The City should recalculate the annual adjustment factors and prepare a revised limit for adoption by the City Council. City Response: The calculation error was discovered by Finance Division staff in April of 2001. The error of $81,908 represents an adjustment of only 0.6 percent to the limit of $13 million, and the limit still far exceeds appropriations subject to the limit. The error is insignificant and a correction at that time was not warranted. The corrected figures will be given to the City Council when they consider the appropriations limit for the fiscal year 2002 -2003. City of Moorpark, California Management Letter Page 3 CURRENT YEAR FINDINGS AND RECOMMENDATIONS (Continued) Deposits Finding: The City has not adequately monitored the deposit accounts; this resulted in several deposits maintaining negative balances on the City's general ledger, and allowed the city to provide services that may be uncollectable in the future. Recommendation: Deposits should be reviewed on a regular basis, in order to ensure that the depositors have adequate funds for the services provided by the City. City Response Monitoring of developer deposits has been a subject of considerable effort in the last several years. However, the electronic accounting tools available to staff have not been adequate to analyze these balances automatically and staff resources have not been adequate to sufficiently monitor them manually. Despite these limitations, it should be noted that negative deposit balances amount to only 6 percent of the total amount on deposit for 158 individual deposit accounts. In December 2001, the City contracted with software developers to design and implement a multi - purpose database designed to track deposits, charges against the deposits, and analyze problems. We plan to have this database implemented by December 2002. False Alarm Fees Finding: The City Council adopted a new false alarm fee schedule, however, the City is charging false alarm fees based on the old schedule. Recommendation: We recommend the City review the false alarm fees and implement the most updated fee schedule adopted by the City Council. City Response: When the Police Department responds to a false alarm, they send a letter to the home or business owner indicating the amount owed. The Finance Division generates an invoice based on the amount specified in the Police Department's letter. The City Council adopted a fee increase of $5 in July 1998 and, unfortunately, neither the Police Department nor the Finance Division implemented the increase until May 2001. The fees currently being charged are correct we will be sure future changes are promptly implemented. City of Moorpark, California Management Letter Page 4 CURRENT YEAR FINDINGS AND RECOMMENDATIONS (Continued) Disbursements/Purchasing Finding: The City's purchasing ordinance requires that purchase orders be used for all purchases made by the City. We noted that the actual purchasing system in use does not require that purchase orders be obtained for every purchase. Warrant requests, and other forms of approval are used to document approval for reoccurring types of expenditures. Recommendation: The City should review its purchasing policies and the purchasing ordinance to ensure that the actual system in use agrees to the level of control defined by the purchasing ordinance. City Response: The city's purchasing ordinance, unfortunately, has not been updated since 1983 and many of its provisions are not in keeping with modern purchasing nor current city practices. We agree that the purchasing ordinance needs updating. This was also a recommendation last year; unfortunately, due to reduced staffing levels, the City was not able to update the purchasing ordinance during the year. However, it is important to note that numerous internal control procedures are in place to help protect against errors and fraud in accounts payable and non- compliance with this specific requirement in the city's municipal code does not result in compromised internal control. Review and amendment to the purchasing ordinance will be accomplished by December 2002. Fixed Assets Finding: The City has not maintained the documentation to support the General Fixed Assets Account Group in a manner that will allow us to express an opinion on this account group. Although it appears that the City is tracking current additions, it does not have a detailed listing to support the totals as reported in the prior year's audit. It also appears that the City is not consistently applying the capitalization policies for current additions. Recommendation: We suggest that the City devote the necessary time to conduct a complete inventory of all fixed assets owned by the City, and review all applicable policies. This will enable the City to have a listing of all City owned assets. This will also assist the City in preparing for the new reporting model that has recently been adopted by the Governmental Accounting Standards Board (GASB). GASB has recently adopted statement 34 that will require significant changes to the current reporting model, one of the most significant changes will be the requirement that each governmental agency book and track all fixed assets within the fund structure of the entity. This will include depreciation. By beginning to track the fixed assets now the City will have a head start on the implementation of the new reporting model. City of Moorpark, California Management Letter Page 5 CURRENT YEAR FINDINGS AND RECOMMENDATIONS (Continued) CiIy Response: The city did complete an inventory of all fixed assets and installed software necessary to track these assets in the financial management system. However, implementation of this new system has been delayed due to staffing shortages, but progress has resumed and we anticipate completion of this project by June 30, 2002. Electronic Data Processing Finding: Although the City performs back -up procedures on a periodic basis, the City does not have a formal written policy that covers the frequency of back -up procedures, nor offsite storage of back -up tapes. Recommendation: We suggest that the City review all policies and procedures relating to the use and back -up procedures relating to City owned computers. These polices should include the frequency of back -up, offsite storage of back -up documents, and a file saving policy to ensure that all files are part of the back -up system. Cily Response: As noted in the finding, the City does routinely and consistently back -up all information systems. We agree that a written procedure should be created and will develop one by June 30, 2002. Accounting Policies and Procedures Manual Finding: Although the City has used a variety of publications for guidance on handling of specific accounting or operational issues as well as guidance provided in the Moorpark Operating Procedures Manual, the City currently does not have a City-wide comprehensive accounting policies and procedures manual. We recommend that such a comprehensive accounting manual be prepared in order to document and communicate control objectives and the appropriate methodology for the processing of transactions for all recurring accounting and financial transactions. While most current employees are familiar with the established accounting procedures, a comprehensive manual would serve to supplement their knowledge and would be especially useful during periods of transition. City of Moorpark, California Management Letter Page 6 CURRENT YEAR FINDINGS AND RECOMMENDATIONS (Continued) Recommendations: We understand that completion of such a manual has been delayed due to the anticipated conversion to new accounting software during fiscal year 1999. In preparing such a manual, we recommend that the City address the following items, among others, some of which already exist as standard operating procedures: • A current detailed chart of accounts, including adequate explanation of the purpose and content of each account and the individuals assigned control over each account; • A description of all the funds of the City, including type (i.e. Special Revenue, Capital Projects, etc.) and purpose of each fund; • Documentary flowcharts of significant accounting systems, including their interrelationship, where applicable, with other departments within the City; • Reports used on a recurring basis, frequency of the report, content and purpose; • A list of standard forms and journal vouchers with detailed explanations of their purpose and preparation; • Appropriate descriptions of all financial policies and recurring accounting procedures and routines, which should include but are not necessarily limited to the following: • Monthly review of internally generated reports, which may vary in complexity from a simple scan of transactions to detailed analysis or reconciliation work; • Policies related to cash which would include preparation of bank reconciliations, controls over cash disbursements and cash receipts, and procedures regarding the investment of excess cash on hand; • Purchase and capitalization of fixed assets and related procedures for computation of depreciation thereon; • Doubtful accounts and related bad debt write -offs; • Lease obligations and related capitalization policies; • Authorization for incurring professional services; • Policies related to the recognition of revenues and expenses with particular attention paid to year -end cut- off procedures; and • The assignment of accounting responsibilities and expenditure approval procedures. • Policies and procedures related to personnel with accounting and control responsibilities: • Job descriptions City of Moorpark, California Management Letter Page 7 CURRENT YEAR FINDINGS AND RECOMMENDATIONS (Continued) • Formal training programs for various job positions • Methodology for monitoring completion of duties and performance evaluations • Adequate policies to provide for competent replacements for individuals with control responsibilities. Such an accounting manual should be updated periodically and distributed to all accounting personnel and key operations personnel. This manual should evolve to meet the needs of the City and provide an accurate reflection of the current accounting system. All changes in the manual should be subject written approval by City management. The Development of this document will have numerous benefits, including the promotion of control consciousness, definition of responsibilities, increased communication between individuals and departments, utilization of consistent and appropriate accounting practices and compliance with accounting requirements. In addition, preparing such a manual may reveal redundancies and inefficiencies in the current accounting system. A well developed accounting policies and procedures manual serves as a ready reference for employees and provides a sound base to continually monitor and assess the City's internal operations. City Response: We are in complete agreement that written policies and procedures covering a broad range of finance and purchasing processes is essential. Development of such a comprehensive manual takes time and will be a "work in progress" for many years. Unfortunately, staffing shortages have prohibited substantial efforts in this area. We will continue to look for opportunities to develop written procedures. City of Moorpark, California Management Letter Page 8 STATUS OF PRIOR YEAR FINDINGS Cash and Investments Finding: The City did not submit the June 30, 2000, Treasurers report to the City Council for approval within a timely manner. It appears that as of November this report had not been taken to Council for approval. In addition we noted that the quarterly Treasurers report did not contain all of the required elements for the City's investments. Recommendation: The City should review the procedures for the preparation of the Treasurers report to ensure timely reporting to the City Council. The report should also be reviewed to ensure that all appropriate disclosures are made in accordance with State statute. Status: Implemented. Finding: The City was behind in the monthly bank reconciliation for two of the City's bank accounts. We noted that the City's general checking account had not been reconciled from June of 1999 through our interim fieldwork dates of April 2000. In addition, the City's disbursement account had not been reconciled from January 2000 through April 2000. Recommendation: The monthly reconciliation of the bank statements is an important aspect of the City's internal control structure. We suggest that the City develop policies to ensure that each City bank account is reconciled on a monthly basis. Status: Implemented. City of Moorpark, California Management Letter Page 9 STATUS OF PRIOR YEAR FINDINGS (Continued) Disbursements/Purchasing Findin : The City's purchasing ordinance requires that purchase orders be used for all purchases made by the City. We noted that the actual purchasing system in use does not require that purchase orders be obtained for every purchase. Warrant requests, and other forms of approval are used to document approval for reoccurring types of expenditures. Recommendation: The City should review its purchasing policies and the purchasing ordinance to ensure that the actual system in use agrees to the level of control defined by the purchasing ordinance. Status: Not Implemented. See current year findings. Loans between the City and the Redevelopment Agency Finding: We noted that the interest charged to the Redevelopment Agency for the loan from the General Fund is based upon the budget document not the actual interest that is accrued based upon the balance of the outstanding loan. Recommendation: We suggest that interest charges be based upon the actual amount outstanding, not upon the budget. Status: Implemented. City of Moorpark, California Management Letter Page 10 STATUS OF PRIOR YEAR FINDINGS (Continued Fixed Assets Finding: The City has not maintained the documentation to support the General Fixed Assets Account Group in a manner that will allow us to express an opinion on this account group. Although it appears that the City is tracking current additions, it does not have a detailed listing to support the totals as reported in the prior year's audit. It also appears that the City is not consistently applying the capitalization policies for current additions. Recommendation: We suggest that the City devote the necessary time to conduct a complete inventory of all fixed assets owned by the City, and review all applicable policies. This will enable the City to have a listing of all City owned assets. This will also assist the City in preparing for the new reporting model that has recently been adopted by the Governmental Accounting Standards Board (GASB). GASB has recently adopted statement 34 that will require significant changes to the current reporting model, one of the most significant changes will be the requirement that each governmental agency book and track all fixed assets within the fund structure of the entity. This will include depreciation. By beginning to track the fixed assets now the City will have a head start on the implementation of the new reporting model. Status: In Process, see current year findings. Personnel Finding: During our testing of the personnel/payroll internal control systems we noted that the final review of pay rate changes is performed by an employee who also has access, and the ability, to change the pay rate information in the computer system. Recommendation: We suggest that there be a separation of duties relating to the final review of pay rate changes. An employee separate of the payroll and input function should be reviewing the information to ensure that proper changes were made. This employee should not have the ability to input changes into the payroll system. Status: Implemented. City of Moorpark, California Management Letter Page 11 STATUS OF PRIOR YEAR FINDINGS (Continued) Electronic Data Processing Finding: Although the City performs back -up procedures on a periodic basis, the City does not have a formal written policy that covers the frequency of back -up procedures, nor offsite storage of back -up tapes. Recommendation: We suggest that the City review all policies and procedures relating to the use and back -up procedures relating to City owned computers. These polices should include the frequency of back -up, offsite storage of back -up documents, and a file saving policy to ensure that all files are part of the back -up system. Status: Not Implemented. The City does not have a written policy. See current year findings. Accounting Policies and Procedures Manual Findiniz: Although the City has used a variety of publications for guidance on handling of specific accounting or operational issues as well as guidance provided in the Moorpark Operating Procedures Manual, the City currently does not have a City-wide comprehensive accounting policies and procedures manual. We recommend that such a comprehensive accounting manual be prepared in order to document and communicate control objectives and the appropriate methodology for the processing of transactions for all recurring accounting and financial transactions. While most current employees are familiar with the established accounting procedures, a comprehensive manual would serve to supplement their knowledge and would be especially useful during periods of transition. Recommendations: We understand that completion of such a manual has been delayed due to the anticipated conversion to new accounting software during fiscal year 1999. In preparing such a manual, we recommend that the City address the following items, among others, some of which already exist as standard operating procedures: • A current detailed chart of accounts, including adequate explanation of the purpose and content of each account and the individuals assigned control over each account; • A description of all the funds of the City, including type (i.e. Special Revenue, Capital Projects, etc.) and purpose of each fund; City of Moorpark, California Management Letter Page 12 STATUS OF PRIOR YEAR FINDINGS (Continued) • Documentary flowcharts of significant accounting systems, including their interrelationship, where applicable, with other departments within the City; • Reports used on a recurring basis, frequency of the report, content and purpose; • A list of standard forms and journal vouchers with detailed explanations of their purpose and preparation; • Appropriate descriptions of all financial policies and recurring accounting procedures and routines, which should include but are not necessarily limited to the following: • Monthly review of internally generated reports, which may vary in complexity from a simple scan of transactions to detailed analysis or reconciliation work; • Policies related to cash which would include preparation of bank reconciliations, controls over cash disbursements and cash receipts, and procedures regarding the investment of excess cash on hand; • Purchase and capitalization of fixed assets and related procedures for computation of depreciation thereon; • Doubtful accounts and related bad debt write -offs; • Lease obligations and related capitalization policies; • Authorization for incurring professional services; • Policies related to the recognition of revenues and expenses with particular attention paid to year -end cut- off procedures; and • The assignment of accounting responsibilities and expenditure approval procedures. • Policies and procedures related to personnel with accounting and control responsibilities: • Job descriptions • Formal training programs for various job positions • Methodology for monitoring completion of duties and performance evaluations • Adequate policies to provide for competent replacements for individuals with control responsibilities. Such an accounting manual should be updated periodically and distributed to all accounting personnel and key operations personnel. This manual should evolve to meet the needs of the City and provide an accurate reflection of the current accounting system. All changes in the manual should be subject written approval by City management. f` City of Moorpark, California Management Letter Page 13 STATUS OF PRIOR YEAR FINDINGS (Continued) The Development of this document will have numerous benefits, including the promotion of control consciousness, definition of responsibilities, increased communication between individuals and departments, utilization of consistent and appropriate accounting practices and compliance with accounting requirements. In addition, preparing such a manual may reveal redundancies and inefficiencies in the current accounting system. A well developed accounting policies and procedures manual serves as a ready reference for employees and provides a sound base to continually monitor and assess the City's internal operations. Status: Improved/In Process. See current year findings. We will review the status of these comments during our next audit engagement. We have already discussed these comments and suggestions with City personnel, and we will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations. VO Vavrinek, Trine, Day & Co., LLP Rancho Cucamonga, California CITY OF MOORPARK SINGLE AUDIT REPORTS - AMENDED FOR THE YEAR ENDED JUNE 309 2000 rl6tl Vavrinek, Trine, Day & Co., LLP Certified Public Accountants & Consultants INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH UNITED STATES OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A -133 AMENDED The Honorable Mayor and Members of the City Council City of Moorpark, California Compliance We have audited the compliance of the City of Moorpark, California with the types of compliance requirements - described in the U.S. Office of Management and Budget (OMB) Circular A -133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2000. The City of Moorpark, California's major Federal programs are identified in the Schedule of Expenditures of Federal Awards. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of the City of Moorpark, California's management. Our responsibility is to express an opinion on the City of Moorpark, California's compliance based on our audit. F7 We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Moorpark, California's compliance with those requirements and performing such other procedures, as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City of Moorpark, California's compliance with those requirements. In our opinion, the City of Moorpark, California complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000. Internal Control over Compliance The management of the City of Moorpark, California is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered the City of Moorpark, California's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A -133. 8270 Aspen Street Rancho Cucamonga, CA 91730 Tel: 909.466.4410 Fax: 909.466.4431 www.vtdcpa.com AN FRESNO • LAGUNA HILLS • PLEASANTON • RANCHO CUCAMONGA • SACRAMENTO • SAN JOSE W Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that rr noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. Schedule of Expenditures of Federal Awards We have audited the general - purpose financial statements of the City of Moorpark, California as of and for the year ended June 30, 2000 and have issued our report thereon, dated November 21, 2000. Our audit was performed for the purpose of forming an opinion on the general - purpose financial statements of the City of Moorpark, California taken as a whole. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by OMB Circular A -133 and is not a required part of the general - purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. This report is intended for the information of the Mayor and City Council, the City's management, federal granting agencies and the Controller of the State of California, and is not intended to be and should not be used by anyone then these specified parties. Rancho Cucamonga, CA. November 21, 2000 _ t r 2 W M F0 CITY OF MOORPARK, CALIFORNIA SINGLE AUDIT REPORT - AMENDED JUNE 30, 2000 TABLE OF CONTENTS PAGE Independent Auditors' Report On Compliance With Requirements Applicable To Each Major Program And Internal Control Over Compliance In Accordance With United States Office Of Management And Budget Circular A -133 I Independent Auditors' Report On Compliance And On Internal Control Over Financial Reporting Based On An Audit Of General Purpose Financial Statements Performed In Accordance With Governmental Auditing Standards 3 Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2000 5 Notes to Schedule of Expenditures of Federal Awards for the Year Ended June 30, 2000 6 Summary of Auditors Results 7 Financial Statement Findings and Recommendations 8 Federal Award Findings and Questioned Cost 9 Status of Prior Year Findings and Recommendations 10 Vavrinek, Trine, Day & Co., LLP Certified Public Accountants & Consultants INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS AMENDED The Honorable Mayor and Members of the City Council City of Moorpark, California: We have audited the general - purpose financial statements of the City of Moorpark, California as of and for the year ended June 30, 2000 and have issued our report thereon, dated November 21, 2000. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the City of Moorpark, California's general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of general purpose financial statement amounts. 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 that are required to be reported under Government Auditing Standards. Internal Control In planning and performing our audit, we considered the City of Moorpark, California's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general- purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. However, we noted other matters involving the internal control over financial reporting that we have reported to management of the City of Moorpark, California in a separate letter dated November 21, 2000. 8270 Aspen Street Rancho Cucamonga, CA 91730 Tel: 909.466.4410 Fax: 909.466.4431 www.vtdcpa.com 4" FRESNO • LAGUNA HILLS • PLEASANTON • RANCHO CUCAMONGA • SACRAMENTO • SAN JOSE This report is intended for the information of the Mayor and City Council, the City's management, federal granting agencies and the Controller of the State of California, and is not intended to be and should not be used by anyone then these specified parties. Rancho Cucamonga, CA. November 21, 2000 4 IL CITY OF MOORPARK SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS - AMENDED JUNE 30, 2000 Program Title: U.S. Department of Transportation Highway Planning & Construction (1) U.S. Department of Housing and Urban Development Pass - through from theVentura County Community Development Commision Community Development Block Grant (1) Community Development Block Grant (1) Community Development Block Grant (1) Community Development Block Grant (1) Community Development Block Grant (1) Total Department of Housing and Urban Development U.S. Department of Health and Human Services Pass - through from the Ventura County Agency on Aging Special Programs for the Aging - Title III Part B Grants for Supportive Services and Senior Centers Total Federal Expenditures (1) Major Program 5 Pass - through Federal Grantor's CFDA # Number Expenditures 20.205 DBMAL -5436 (004) 1,038,799 14.218 B- 95- UC -06- 0507 -J3 63,444 14.218 B- 96- UC -06- 0507 -J4 161,895 14.218 B- 97- UC -06- 0507 -J5 150,634 14.218 B- 98- UC -06- 0507 -J6 63,557 14.218 B- 99- UC -06- 0507 -J7 46,367 485,897 93.044 3B- 0247 - 07971282 22,385 $ 1,547,081 CITY OF MOORPARK 5 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS - AMENDED' JUNE 30, 2000 NOTE #1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES W err A. General The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of the City of Moorpark, California (City). The City's reporting entity is defined in Note #1 of the City's general - purpose financial statements. All federal awards received directly from federal agencies, as well as federal awards passed through other governmental agencies to the City are included in the accompanying schedule. B. Basis of Accounting The accompanying Schedule of Expenditures of Federal Awards is presented using the modified - accrual basis of accounting, which is described in Note #1 of the City's general - purpose financial statements. C. Relationship to General Purpose Financial Statements Federal awards revenues are generally reported within the City's general - purpose financial statements under the financial statement caption "Subventions and Grants" for the General and Special Revenue Funds. D. Relationship to Federal Financial Reports Amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree with the amounts reported in the related federal financial reports. However, certain federal financial reports are filed based on cash expenditures. As such, certain timing differences may exist in the recognition of revenues and expenditures between the Schedule of Expenditures of Federal Awards and the federal financial reports. rr w 6 W I r CITY OF MOORPARK SUMMARY OF AUDITORS RESULTS - AMENDED JUNE 30, 2000 FINANCIAL STATEMENTS Type of auditors' report issued: Qualified Internal control over financial reporting: Material weakness(es) identified? No Reporting condition(s) identified not considered to be material weaknesses? Yes Noncompliance material to financial statements noted? No FEDERAL AWARDS Internal control over major programs: Material weakness(es) identified? No Reporting condition(s) identified not considered to be material weaknesses? No Type of auditors' report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A -133, Section .510(a) No Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster 20.005 U. S. Dept. of Transportation- Highway and Bridge Replacement 14.218 U.S. Dept. of Housing and Urban Development - Community Development Block Grant Dollar threshold used to distinguish between Type A and Type B programs: $ 300,000 Auditee qualified as low -risk auditee? No 7 CITY OF MOORPARK FINANCIAL STATEMENTS FINDINGS AND RECOMMENDATIONS - AMENDED JUNE 30, 2000 �r See separately issued Management Letter. �= rr �e rr 8 „� ' CITY OF MOORPARK FEDERAL AWARD FINDINGS AND QUESTIONED COSTS - AMENDED " JUNE 30, 2000 There were no findings representing reportable conditions, material weaknesses, and instances of noncompliance including questioned cost that are required to be reported by OMB Circular A -133. 0 CITY OF MOORPARK STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS - AMENDED JUNE 30, 2000 W ■a There were no prior year findings, instances of non - compliance or questioned cost. 1+ so 10 ap oft