HomeMy WebLinkAboutAGENDA REPORT 2015 0204 CCSA REG ITEM 09D ITEM 9.D.
CITY OF MOORPARK,CALIFORNIA
City Council Meeting
MOORPARK CITY COUNCIL of aif•aoi,5"
AGENDA REPORT ACTION: i/I :/•-cd ad-uplit
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TO: The Honorable City Council BY: o- —
FROM: Ron Ah)ers, Finance Director
DATE: January 27, 2015 (CC Meeting of February 4, 2015)
SUBJECT: Consider Annual Financial Statements and Other Audit Reports for
Fiscal Year Ended June 30, 2014
SUMMARY
The Comprehensive Annual Financial Report (CAFR), Independent Auditor's Report on
Internal Control Over Financial Reporting and on Compliance and Other Matters Based
on an Audit of Financial Statements Performed in Accordance with Government
Auditing Standards, Independent Accountant's Report on Agreed-Upon Procedures
Applied to Appropriations Limit Worksheets, Independent Auditor's memo regarding
significant audit findings, Housing Successor Fund Audited Financial Statements and
the Housing Successor Fund Addendum to the Annual Progress Report of the City of
Moorpark for June 30, 2014 are hereby submitted for Council approval.
BACKGROUND
The City is required to conduct an annual independent audit of its financial statements.
The audit firm of Rogers, Anderson, Melody & Scott, LLP, Certified Public Accountants
(RAMS) conducted the annual audit and with staff assistance prepared the required
financial statements. For the fiscal year ended June 30, 2014, the City received an
unqualified opinion. The City currently has six bond issues for which it is responsible
(three redevelopment bonds and three assessment district bonds). The bond proceeds
from these six issues have been spent in accordance with the bond documents.
AWARD
The Government Finance Officers Association of the United States and Canada
(GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to
the City for its comprehensive annual financial report for the fiscal year ended June 30,
2013. In order to be awarded a Certificate of Achievement, a government unit must
publish an easily readable and efficiently organized comprehensive annual financial
report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
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Honorable City Council
February 4, 2015
Page 2
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the Certificate of
Achievement Program's requirements and we have submitted it to the GFOA to
determine its eligibility for another certificate.
DISCUSSION
CAFR
Attached for your approval are the annual financial statements for the year ended June
30, 2014 for the City of Moorpark. The financial statements are comprehensive and
include all of the fund types in the City.
The City Council engaged an independent certified public accounting firm, RAMS, to
perform the annual audit of the City of Moorpark and its component units. The results of
the audit performed are formally published in the CAFR. This report must satisfy both
Generally Accepted Accounting Principles (GAAP) and applicable legal requirements.
Additionally, the CAFR is sent out to numerous government agencies and financial
institutions in order to comply with various reporting, financial and subsequent bond
disclosure requirements. The overall financial picture of the City is presented, in
accordance to the Governmental Accounting Standards Board (GASB)
pronouncements, on a Government-wide basis. This is designed to provide readers with
a broad overview of the City's finances similar to a private-sector business. These
statements show the June 30, 2014 fiscal year balances and overall results of
operations for the period then ended, for all City funds, including the Successor Agency
to the Redevelopment Agency of the City of Moorpark (Successor Agency).
The CAFR statements are as follows:
Management's Discussion and Analysis (MD & A). This discussion and analysis starts
the financial section of the CAFR and serves as an executive summary. GAAP requires
that management provide this narrative introduction, overview and analysis to
accompany the basic financial statements. The letter of transmittal, which precedes the
MD & A in the introductory section, is designed to supplement the MD & A and should
be read in conjunction with it. The MD & A is found immediately following the report
from the independent auditors. The report from the auditors contains an opinion letter in
which an entity can receive basically 3 opinions; unqualified, qualified, and adverse. An
unqualified opinion from the auditors is the highest given. For the fiscal year ended June
30, 2014 audit, the City of Moorpark received an unqualified opinion.
The Statement of Net Position presents information on all of the City's assets and
liabilities, with the difference between the two reported as net position. Over time,
increases or decreases in net position (page 15) may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position
changed during the most recent fiscal year. All changes in net position are reported as
soon as the underlying event giving rise to the change occurs, regardless of the timing
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Honorable City Council •
February 4, 2015
Page 3
of related cashflows. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods (e.g., earned but
unused vacation and sick leave). An increase in net position of $6.9 million was
reported for the fiscal year ended June 30, 2014 (pages 16 and 66).
The government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental
activities). The governmental activities of the City include general government, public
safety, public services and parks and recreation.
Following the government-wide statements in the CAFR, the Balance Sheet, and the
Statement of Revenues. Expenditures and Changes in Fund Balances are presented for
all major and non-major governmental funds. A major fund is one of material
significance and is determined through prescribed calculations. The General Fund is
always considered a major fund by definition. Other governmental funds can be
declared major funds by management due to other factors, even if they fail the
qualifications resulting from the calculations. Non-major funds are all combined together
for presentation. Reconciliations between these governmental statements and the
government-wide statements are also presented.
The Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net
Position are located on pages 27-28. The Successor Agency is a Private Purpose Trust
Fund and is recorded in these statements.
All of these statements are followed by the Notes to the Financial Statements on pages
29-66.
The Required Supplementary Information begins at page 67 and details the budget to
actual comparisons for all the major funds of the City, beginning with the General Fund.
The next section of the CAFR provides statements for each individual non-major
governmental fund. The governmental funds are presented in their various categories:
special revenue funds and capital project funds. Additionally, there is the budget to
actual comparisons for each non-major fund.
The last section of the CAFR contains statistical data about the City of Moorpark. This
section is prepared by staff and not reviewed by the auditors. All of the tables and
schedules present numerous facts about the City, many for the last 10 years. The
statistical facts include population figures, principal taxpayers, and assessed valuations
of taxable property to name a few.
The CAFR is posted on the City's website: http://www.MoorparkCA.qov
General Fund Financial Status
For fiscal year ended June 30, 2014, the General Fund unassigned fund balance totaled
$3.0 million, which equates to approximately 28% of operating expenses. The General
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Honorable City Council
February 4, 2015
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Fund had a surplus of $412,098 for this past year. Per Council policy the City
transferred $412,098 from the General Fund to the Special Projects Fund at June 30,
2014. The reasons for the surplus are revenues were greater than estimated while
expenses were below appropriations.
Successor Agency to the Redevelopment Agency of the City of Moorpark
ABx1 26 was passed and signed by the Governor in the summer of 2011. The
California Supreme Court upheld the validity of ABx1 26 and thereby all redevelopment
agencies in the State, including the Redevelopment Agency of the City of Moorpark
(MRA), were dissolved as of January 31, 2012. The assets, liabilities and net position
(equity) were transferred from the MRA to the Successor Agency on February 1, 2012.
The Successor Agency is shown as a Private Purpose Trust Fund and is NOT a
governmental fund and NOT included in the Statement of Net Position or Statement of
Activities. The Successor Agency is a separate legal entity controlled by the Oversight
Board and the State Department of Finance. It is accounted for completely separate
from the City of Moorpark and shall remain so for the entire term of its existence. The
accounting for the Successor Agency is on pages 27-28 with explanatory notes on
pages 62-65 of the CAFR.
Single Audit Report— (Report not required this year)
The City was not required to conduct a single audit this year because the City did not
meet the $500,000 federal grant expenditure threshold. The Single Audit is specifically
designed to meet the needs of all federal grantor agencies from which the City receives
funds.
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
The independent auditors noted no findings in this report for the fiscal year ended June
30, 2014.
Independent Accountant's Report on Agreed-Upon Procedures Applied to
Appropriations Limit Worksheets
The independent auditors noted no findings for the City's calculations with regards to
the appropriations limit for the fiscal year ended June 30, 2014.
Independent Auditor's memo regarding significant audit findings
The independent auditors noted no findings for the audit process for the fiscal year
ended June 30, 2014.
Housing Successor Fund Audited Financial Statements
This is a new report this fiscal year. Senate Bill 341 (SB 341) requires audited Financial
Statements for the Housing Successor Fund to be filed with the State of California.
Housing Successor Fund Addendum to the Annual Progress Report
This is a new report this fiscal year. SB 341 requires this addendum report to be filed
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Honorable City Council
February 4, 2015
Page 5
with the State of California.
STAFF RECOMMENDATION (Roll Call Vote)
Accept the Comprehensive Annual Financial Report (CAFR), Independent Auditor's
Report on Internal Control Over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards, Independent Accountant's Report on Agreed-Upon
Procedures Applied to Appropriations Limit Worksheets, Independent Auditor's memo
regarding significant audit findings, Housing Successor Fund Audited Financial
Statements, Housing Successor Fund Addendum to the Annual Progress Report and
receive and file this report.
Attachments:
1. City of Moorpark CAFR for Fiscal Year Ending June 30, 2014
2. Independent Auditor's Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
3. Independent Accountant's Report on Agreed-Upon Procedures Applied to
Appropriations Limit Worksheets
4. Independent Auditor's memo regarding Significant Audit Findings
5. Housing Successor Fund Audited Financial Statements
6. Housing Successor Fund Addendum to the Annual Progress Report
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Attachment 1
CITY OF MOORPARK, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended June 30, 2014
Prepared By:
Ron Ahlers, Finance Director
Irmina Lumbad, Budget& Finance Manager
29
City of Moorpark
Comprehensive Annual Financial Report
Year Ended June 30,2014
TABLE OF CONTENTS
PAGE
I. INTRODUCTORY SECTION
Letter of Transmittal
Directory of Officials vi
Organizational Chart vii
Certificate of Achievement of Excellence in Financial Reporting viii
II. FINANCIAL SECTION
Independent Auditor's Report 1
Management Discussion &Analysis 4
Basic Financial Statements:
Government-wide Financial Statements
Statement of Net Position 15
Statement of Activities 16
Fund Financial Statements
Balance Sheet-Governmental Funds 17
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position 21
Statement of Revenues, Expenditures and Changes in Fund Balances-
Governmental Funds 22
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities 26
Statement of Fiduciary Net Position 27
Statement of Changes in Fiduciary Net Position 28
Notes to Financial Statements 29
Required Supplementary Information:
Required Supplementary Information - Budgetary Comparison Schedule-
Budget and Actual-General Fund 67
Required Supplementary Information-Budgetary Comparison Schedule-
Budget and Actual-Street and Traffic Safety Special Revenue Fund 70
Required Supplementary Information - Budgetary Comparison Schedule-
Budget and Actual—Assessment District Special Revenue Fund 71
Required Supplementary Information-Budgetary Comparison Schedule-
Budget and Actual—Parks& Pub. Fac. Special Revenue Fund 72
Required Supplementary Information - Budgetary Comparison Schedule-
Budget and Actual -Los Angeles A.O.0 Special Revenue Fund 73
Required Supplementary Information- Budgetary Comparison Schedule-
Budget and Actual—Low-Mod Housing Asset Special Revenue Fund 74
Required Supplementary Information- Budgetary Comparison Schedule -
Budget and Actual—Prop 1B Special Revenue Fund 75
Required Supplementary Information- Budgetary Comparison Schedule-
Budget and Actual—Community Development Special Revenue Fund 76
30
City of Moorpark
Comprehensive Annual Financial Report
Year Ended June 30, 2014
TABLE OF CONTENTS -Continued
PAGE
Required Supplementary Information -Continued:
Schedule of Funding Progress for MRHP 77
Notes to Required Supplementary Information 78
Supplementary Information:
Budgetary Comparison Schedules-Major Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual:
Police Facilities Fee Capital Projects Fund 79
Non-Major Governmental Funds 80
Non-Major Governmental Funds- Combining Balance Sheet 82
Non-Major Governmental Funds-Combining Statement of Revenues,
Expenditures and Changes in Fund Balance 88
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual:
Library Services Special Revenue Fund 94
Traffic Safety Special Revenue Fund 95
City Affordable Housing Special Revenue Fund 96
Endowment Special Revenue Fund 97
Tierra Rejada-Spring Road Special Revenue Fund 98
State Gas Tax Special Revenue Fund 99
Art in Public Places Special Revenue Fund 100
State and Federal Assistance Special Revenue Fund 101
Local Transportation Transit Special Revenue Fund 102
Solid Waste Special Revenue Fund 103
Capital Projects Fund 104
City Hall Building Capital Projects Fund 105
Equipment Replacement Capital Projects Fund 106
Statement of Changes in Net position-Agency Funds 107
III.STATISTICAL SECTION
Net position by Component- Last Ten Fiscal Years 108
Changes in Net Position Governmental Activities- Last Ten Fiscal Years 110
Fund Balances of Governmental Funds- Last Ten Fiscal Years 112
Changes in Fund Balances of Governmental Funds-Last Ten Fiscal Years 114
31
City of Moorpark
Comprehensive Annual Financial Report
Year Ended June 30, 2014
TABLE OF CONTENTS -Continued
PAGE
III. STATISTICAL SECTION -Continued
Assessed Value and Estimated Actual Value of Taxable Property-
Last Ten Fiscal Years 116
Direct and Overlapping Property Tax Rates- Last Ten Fiscal Years 117
Principal Property Tax Payers-Current Year and Ten Years Ago 118
Property Tax Levies and Collections-Last Ten Fiscal Years 119
Ratios of Outstanding Debt by Type- Last Ten Fiscal Years 120
Ratio of General Bonded Debt Outstanding-Last Ten Fiscal Years 121
Direct and Overlapping Debt 122
Legal Debt Margin Information- Last Ten Fiscal Years 123
Pledged Revenue Coverage-Last Ten Fiscal Years 125
Demographic and Economic Statistics- Last Ten Calendar Years 126
Principal Employers- Current and Ten Calendar Years Ago 127
Full-Time and Part-Time City Employees by Function- Last Ten Fiscal Years 128
Operating Indicators by Function- Last Ten Fiscal Years 129
Capital Asset Statistics by Function- Last Ten Fiscal Years 130
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INTRODUCTORY SECTION
33
Có'y ®f 9Woapark
,
799 Moorpark Avenue, Moorpark, California 93021 (805) 517-6200 fax(805) 532-2545
January 21, 2015
Honorable Mayor, Members of the City Council and Citizens of Moorpark:
We are pleased to present this Comprehensive Annual Financial Report (CAFR) of the City of Moorpark,
California (City) for the fiscal year ended June 30, 2014. The City has continued to prepare the CAFR to
comply with the financial reporting model developed by the Governmental Accounting Standards Board
(GASB) Statement 34. This model improves the financial reporting by adding significant additional
information not previously available in local government financial statements prior to GASB 34.
As a result of GASB 34, the Government-Wide Financial Statements are presented along with the fund-
by-fund financial information. The Government-Wide Financial Statements include a Statement of Net
Position that provides the total net position (equity) of the City including infrastructures and the Statement
of Activities that shows the cost of providing government services. These statements include all assets
and liabilities using the accrual basis of accounting (similar to a private-sector business) versus the
modified accrual method used in the fund financial statements. A reconciliation of the balance sheet of
the Governmental Funds to the Statement of Net Position has been prepared to reflect the changes
between the two reporting methods. In addition, the reporting model includes an emphasis on the City's
major funds as shown in the Governmental Fund Statements. These statements and other significant
information are analyzed in the narrative section called Management's Discussion and Analysis (MD&A).
The MD&A provides "financial highlights" and a brief overview of the basic financial statements. In
addition, the MD&A provides the readers of the City's financial statements with financial trends,
explanation of variances and economic factors for the upcoming fiscal year's budget.
Furthermore, in May 2004, the GASB issued Statement No. 44, Economic Condition Reporting. This
statement requires the statistical section to be presented with detailed information, typically in ten-year
trends, that assists users in utilizing the basic financial statements, notes to basic financial statements,
and required supplementary information to assess the economic condition of a government. This
statement was effective starting with fiscal year 2005/06 and has resulted in changes to the statistical
section. The City continues to present the statistical section with detail information to be in compliance
with GASB No. 44 requirements for fiscal year 2013/14.
Responsibility for both the accuracy of this data, and the completeness and fairness of its presentation,
including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data
are accurate in all material respects and are reported in a manner that presents fairly the account groups
and the financial position and operational results of the City's various funds and component units. All
disclosures necessary to enable the reader to gain an understanding of the City's activities have been
included.
JANICE S. PARVIN KEITH F. MILLHOUSE ROSEANN MIKOS DAVID POLLOCK MARK VAN DAM
- Mayor Councilmember Councilmember Councilmember Councilmember
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THE REPORTING ENTITY AND ITS SERVICES
The financial reporting entity includes all the funds of the City as well as all of its component units. The
City is the primary government. The component units are the Moorpark Public Financing Authority
(Authority) and the Moorpark Industrial Development Authority(IDA).
The City was incorporated in 1983 as a general law city and operates under a Council-Manager form of
government.
The Authority was formed in 1993 as a joint powers authority between the City and the Redevelopment
Agency of the City of Moorpark (Agency) in order to provide financial assistance to the City and the
Agency by issuing debt and financing the construction of public facilities. The Agency is now dissolved,
but the Authority still continues to exist.
The IDA of the City was formed in 1985 pursuant to the California Industrial Development Financing Act
(the "Act"). Its purpose is to finance the acquisition and development of certain industrial activities as
permitted by the Act and to issue bonds for the purpose of enabling industrial firms to finance the cost of
such activities.
SUCCESSOR AGENCY to the REDEVELOPMENT AGENCY of the CITY of MOORPARK
The Agency was formed in 1987 with the objective of providing long-term financing of capital
improvements designed to eliminate physical and economic blight in the designated project area. On
December 29, 2011, the California Supreme Court upheld Assembly Bill x1 26 ("the Bill")that provides for
the dissolution of all redevelopment agencies in the State of California. The Bill provides that upon
dissolution of a redevelopment agency, the entity that established the redevelopment agency may elect to
serve as the "Successor Agency". The Successor Agency holds the assets of the former redevelopment
agency until they are distributed to other units of state and local government after the payment of
enforceable obligations that were in effect as of the signing of the Bill. On January 4, 2012, the City
elected to become the Successor Agency. On February 1, 2012, the Agency was dissolved and the
Successor Agency to the Redevelopment Agency of the City of Moorpark (Successor Agency) was
created. The Successor Agency is included as a fiduciary fund (private purpose trust fund).
PROFILE OF THE CITY OF MOORPARK
The City provides a full range of services to its residents with a total regular full-time staff of approximately
56 and part-time staff of approximately 45 employees. Major services such as police (contracted with
Ventura County Sheriff), attorney, library, development engineering and inspection, building and safety
plan check/inspection, transit, street sweeping and landscape maintenance are provided through
contractual arrangements. In addition, fire protection is provided by the Ventura County Fire District. The
City provides services such as emergency management, affordable housing, economic development,
planning, code compliance, recreation programs, vector/animal control, park and facilities maintenance,
street maintenance, city engineering, crossing guard and administrative management services with city
employees.
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HISTORY OF THE CITY OF MOORPARK
In 1887, Robert W. Poindexter was granted title to the present site of Moorpark. He named the City after
the Moorpark apricot which grew throughout the valley. Poindexter plotted Moorpark city streets and
planted Pepper trees in the downtown area. The City was incorporated in 1983 as the tenth city of
Ventura County with a Council-Manager form of government. The Mayor is elected at large to serve a
two-year term. The four Council Members are elected at large to serve staggered four-year terms. The
size of the City was 12.36 square miles with a population of about 10,000 at incorporation and is currently
at 12.44 square miles with a population of approximately 34,826 (source: California Department of
Finance). Moorpark is recognized for having the lowest number of serious crimes committed in Ventura
County and is one of the safest cities of its size in the United States.
BUDGETARY CONTROL
The City prepares an annual budget consistent with Generally Accepted Accounting Principles (GAAP)
for all governmental funds on a modified accrual basis where revenues are recognized when they
become measurable and available to finance expenditures of the current period. Expenditures are
recorded when the goods or services are received and the liabilities are incurred.
Department directors are responsible, not only to accomplish his/her particular goals within each
program, but also to monitor budget allocations consistent to the funding levels adopted by the City
Council prior to July 1 of the budget year.
In addition, the City maintains budgetary control through the use of an encumbrance accounting system.
As purchase orders are issued, corresponding amounts are encumbered for later payments to ensure
that budget amounts are not over-spent.
INTERNAL CONTROLS
The City's management is responsible for developing and establishing an internal control structure to
ensure that the assets of the government are protected from loss, theft, misuse and to ensure that
adequate accounting data is compiled to allow for the preparation of financial statements in conformity
with GAAP. The internal control structure is designed to provide reasonable, but not absolute, assurance
that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a
control should not exceed the benefits likely to be derived; and 2) the valuation of the costs and benefits
requires estimates and judgments by management.
ANNUAL AUDIT
An independent accounting firm has performed the annual audit of the City's financial statements for the
fiscal year ended June 30, 2014. As part of the annual audit, reviews are made to determine the
adequacy of the City's internal control structure, as well as to determine that the City has complied with
certain provisions of laws and regulations. Their examination has been completed and the auditor's
report on the City's financial statements is included at the beginning of the Financial Section of this report.
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APPROPRIATION LIMIT
Article XIIIB of the California Constitution (Proposition 4), commonly referred to as the "Gann Initiative"
was approved by California voters in 1979, which placed limits on the amount of proceeds of taxes that
State and Local agencies can appropriate and spend each fiscal year. In addition, voters approved
Proposition 111 in 1990 to further increase the accountability of local government in adopting their limits
by requiring the governing body to annually adopt, by resolution, an appropriation limit for the upcoming
fiscal year. The appropriation limit and the City's appropriations subject to the limit for fiscal year
2013/2014 amounted to$29,619,442 and $14,821,366 respectively
CASH MANAGEMENT
The City Treasurer is responsible for investing cash temporarily idle during the year in accordance with
the State Government Code and the Investment Policy adopted by the City Council. The City diversified
its investment portfolio by utilizing several investment instruments. At fiscal year end June 30, 2014,
approximately $33 million was invested with the Ventura County Pool; $57 million in various U.S.
Treasury Notes and Agency Securities; about $3.0 million in the State Treasurer's Local Agency
Investment Fund (LAIF); and $6 million was invested in demand deposits.
The cash management system of the City is designed to monitor revenues and expenditures to ensure
the investment of monies to the fullest extent possible. The criteria for selecting investments and the
order of priority are (a) safety, (b) liquidity, and (c) yield. The underlying objective of the City's policy is to
obtain the highest interest rate yields, and at the same time, ensure that money is available when needed
and all deposits are insured by the Federal Deposit Insurance Corporation or collateralized.
CAPITAL ASSETS
In accordance with GASB Statement No. 34, the City has reported all capital assets including
infrastructure in the Government-Wide Statement of Net Position. The City elected to use the basic
approach for all infrastructures reporting, whereby depreciation expense and accumulated depreciation
have been recorded. Capital assets for the fiscal year ended June 30, 2014 have a net ending balance of
$260 million.
LONG-TERM LIABILITIES/BONDED INDEBTEDNESS
At June 30, 2014, the City has no outstanding bonds or other debt but does have long-term liabilities in
the approximate amount of$651,829 for employee compensated absences(accrued leave).
The City provides retirement benefits (pension) by contributing to the California Public Employees
Retirement System (CaIPERS). The City pays 100% of the Annual Required Contributions (ARC), as
calculated by CaIPERS. However, the retirement plan is not fully funded and the City is considering fully
funding this plan in the near future.
The City participates in the California Employers' Retiree Benefit Trust (CERBT) administered by
CaIPERS to provide post-employment medical insurance to City retirees. The City accounts for this
liability, per GASB 45, Other Post-Employment Benefits (OPEB). The most recent actuarial valuation was
performed on June 30, 2013, and shows the OPEB liability is over 100% funded. The City has a "Net
OPEB Asset" of$134,000 on the Statement of Net Position. Please read note 8 in the CAFR.
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The Successor Agency has the 1999 Tax Allocation Refunding Bonds, the 2001 Tax Allocation Bonds
and the 2006 Tax Allocation Bonds outstanding in the amounts of $3.3 million, $11.5 million and $11.5
million, respectively. The purpose of the 1999 Bonds was to advance refund the Agency's previously
issued 1993 Tax Allocation Bonds. The purpose of the 2001 and 2006 bonds were to finance a portion of
the costs of implementing the Redevelopment Plan and fund redevelopment activities within the Agency
project area.
RISK MANAGEMENT
The City is a member of the California Joint Powers Insurance Authority (CJPIA) established under the
provisions of California Government Code 6500 et seq., consisting of over 100 California public entities.
The CJPIA provides risk coverage for its members through the pooling of losses and purchased
insurance. The coverage extends to general liability and workers' compensation administered by CJPIA.
In addition, the City also participates in the all-risk property protection offered by CJPIA. Various control
techniques, including safety, ergonomic, harassment and driver awareness training have been
implemented to minimize losses.
AWARD
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual
financial report for the fiscal year ended June 30, 2013. In order to be awarded a Certificate of
Achievement, a government unit must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
ACKNOWLEDGEMENT
We would like to express appreciation to all City staff that assisted and contributed to the preparation of
this report, particularly to the members of the Finance Department. We would also like to extend our
appreciation to the auditors, Rogers, Anderson, Melody & Scott, LLP, Certified Public Accountants for
their professional assistance. As in the past, the CAFR is available on the City's website at
www.MoorparkCA.gov.
Respectfully submitted,
tA>tt(fj‘tU 1/6“41/ 04n )14LL__
STEVEN KUENY RON AHLERS
CITY MANAGER FINANCE DIRECTOR
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6111
;CV-11144:
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2014
DIRECTORY OF CITY OFFICIALS
CITY COUNCIL
Janice S. Parvin, Mayor
Roseann Mikos, Councilmember David Pollock, Councilmember
Keith F. Millhouse, Councilmember Mark Van Dam, Councilmember
CITY MANAGEMENT STAFF
Steven Kueny, City Manager
Hugh Riley,Assistant City Manager
Deborah Traffenstedt, Deputy City Manager
David Bobardt, Community Development Director
David Klotzle, City Engineer/Public Works Director
Jeremy Laurentowski, Parks& Recreation Director
Ron Ahlers, Finance Director
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39
CITY OF MOORPARK
Arts ORGANIZATION CHART
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-VII-
40
Governauerut Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Moorpark
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30,2013
46-19.0"..
Executive DircctovA EO
-viii-
41
FINANCIAL SECTION
42
R A
ROGERS,ANDERSON, MALODY&SCOTT, LLP •
MCERTIFIED PUBLIC ACCOUNTANTS,SINCE.1948
735 E.Carnegie Dr.Suite 100
San Bernardino,CA 92408 Independent Auditor's Report
909 889 0871 T
909 889 5361 F
ramscpa.n et
The Honorable City Council
PARTNERS City of Moorpark, California
Brenda L.Odle,CPA,MST
Terry P.Shea,CPA Report on the financial statements
Kirk A.Franks.CPA
Scott W.Manno,CPA.CGMA We have audited the accompanying financial statements of the government
Leena Shanbhag,CPA.MST,CGMA activities, each major fund, and the aggregate remaining fund information of the
Jay H.Zercher,CPA(Partner Emeritus) City of Moorpark (City), California, as of and for the year ended June 30, 2014,
Phillip H.Waller,CPA(Partner Emeritus) and the related notes to the financial statements, which collectively comprise the
City's basic financial statements as listed in the table of contents.
MANAGERS/STAFF
Bradferd A.Welebir.CPA,MBA
Management's responsibility for the financial statements
Jenny Liu,CPA.MST g l�
Seong-Hyea Lee.CPA,MBA
Charles De Simoni,CPA Management is responsible for the preparation and fair presentation of these
Yiann Fang,CPA financial statements in accordance with accounting principles generally accepted
Nathan Statham.CPA.MBA in the United States of America; this includes the design, implementation, and
Brigitta Bartha.CPA maintenance of internal control relevant to theara
re tion and fair presentation
Gardenya Duran,CPA p p
Juan Romero,CPA of financial statements that are free from material misstatement, whether due to
Ivan Gonzales.CPA.MSA fraud or error.
Brianna Pascoe.CPA
Auditor's responsibility
Our responsibility is to express opinions on these 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 financial
statements are free from material misstatement.
An audit Involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements. The procedures selected
depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant
MEMBERS to the entity's preparation and fair presentation of the financial statements in
American Institute of order to design audit procedures that are appropriate in the circumstances, but
Certified Public Accountants not for the purpose of expressing an opinion on the effectiveness of the entity's
POPS The AICPA Alliance internal control. Accordingly, we express no such opinion. An audit also includes
for CPA Firms evaluating the appropriateness of accounting policies used and the
Governmental Audit reasonableness of significant accounting estimates made by management, as
Quality Center well as evaluating the overall presentation of the financial statements.
California Society of We believe that the audit evidence we have obtained is sufficient and appropriate
Certified Public Accountants
to provide a basis for our audit opinions.
-1-
STABILITY. ACCURACY. TRUST. 4 3
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate remaining
fund information of the City of Moorpark, California, as of June 30, 2014, and the respective changes in
financial position thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Emphasis of matter
Implementation of new pronouncement
As discussed in Note 1 of the financial statements, the City adopted the provisions of GASB Statement
No. 65, Items Previously Reported as Assets and Liabilities. Our opinions are not modified with respect to
this matter.
Other matters
Required supplementary information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison information and the schedule of funding progress as
listed in the table of contents be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Moorpark, California's basic financial statements. The introductory section, the
combining and individual nonmajor fund financial statements, the budgetary comparison schedules, and
the statistical section are presented for purposes of additional analysis and are not a required part of the
basic financial statements.
The combining and individual nonmajor fund financial statements and the budgetary comparison
schedules are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated in all
material respects in relation to the basic financial statements as a whole.
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44
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other reporting required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 21,
2015, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering City's internal control over financial
reporting and compliance.
goJ94.1dJ t,l, temo Stiihnty ? SD7Tl LLft
. /
San Bernardino, CA
January 21, 2015
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46
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2014
As management of the City of Moorpark, California (City), we offer readers of the City's financial
statements this narrative overview and analysis of the financial activities of the City (the "Primary
Government") for the fiscal year ended June 30, 2014. It is encouraged that the readers consider the
information presented here in conjunction with the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
• The assets of the City exceeded its liabilities at the close of fiscal year 2013/14 by $361,327,598
(Net Position). Of this amount, $15,655,932 is not restricted by external law or administrative
action for a specified purpose. The City Council's approval is required before these funds may be
used to meet the City's ongoing obligations to citizens and creditors. GASB defines "Net
Position"as assets less liabilities. GASB requires the City to record infrastructure assets (streets,
parks, buildings, etc.) less accumulated depreciation as a restricted fund balance titled, "Invested
in Capital Assets" ($259,798,991). Restrictions for Special Revenue Funds amounts to
$85,872,675, this reduces the Total Net Position to the Unrestricted Net Position ($15,655,932).
The Statement of Net Position is presented on page 15.
• The City's Total Net Position increased by $6,888,535 during the current fiscal year. The
Statement of Activities is presented on page 16.
• As of June 30, 2014, the City's governmental funds (General Fund, Special Revenue Funds, Debt
Service Funds, and Capital Projects Funds) reported combined ending fund balances of
$98,342,858, an increase of $8,360,563, from the prior year. The increase is a result of
developer fee revenues due to increased building activity within the City.
• At the end of the current fiscal year, fund balances for the General Fund were $3,635,899
($635,899 is in nonspendable form, and $3,000,000 is unassigned).
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements are comprised of three components:
1) Government-wide financial statements
2) Fund financial statements
3) Notes to basic financial statements
Other required supplementary information is included in addition to the basic financial statements.
Government-Wide Financial Statements. The City has presented its financial statements under the
reporting model required by Governmental Accounting Standards Board Statement No. 34 (GASB 34)
and its related Statements, GASB 37, 38, and 41. These financial statements are designed to provide
readers with a broad overview of the City's finances, in a manner similar to a private-sector business.
The government-wide financial statements include the Statement of Net Position and the Statement of
Activities.
The governmental activities of the City include general government, public safety, public services, parks
and recreation, debt service, and interest on debt. The City does not have any business-type activities.
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47
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2014
The Statement of Net Position presents information on all of the City's assets and liabilities, with the
difference between the two reported as net position. Over time, increases and decreases in net position
may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenditures are reported in this statement for some items that will only result in cash flows in future fiscal
periods(i.e., uncollected taxes and earned but unused vacation leave).
The government-wide financial statements include not only the City as the primary government, but also a
legally separate Moorpark Public Financing Authority (Authority), and the Industrial Development
Authority (IDA) of the City. Although legally separate from the City, these component units are blended
with the primary government because of their governance or financial relationships to the City.
The Redevelopment Agency of the City of Moorpark (Agency) was dissolved on February 1, 2012 as
legislated in Assembly Bill x1 26. Its Successor Agency is shown as a Private Purpose Trust Fund
(pages 27-28).
The government-wide financial statements can be found on pages 15 and 16 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the City can be divided into two categories: governmental funds
and fiduciary funds.
Governmental Funds. Governmental Funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term inflows
and outflows of spendable resources, as well as on balances of spendable resources available at the end
of the fiscal year. Such information may be useful in evaluating the City's near-term financial
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the City's near-term financing decisions. Both
the governmental fund balance sheet and the governmental fund statement of revenues, expenditures
and changes in fund balances, provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains a variety of individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the General Fund, Street and Traffic Safety, Assessment Districts,
Affordable Housing, Los Angeles Area of Contribution, Low and Moderate Income Housing Asset, Police
Facilities Fee, and Special Projects, all of which are considered to be major funds. Data from the
remaining governmental funds are combined into a single, aggregated presentation. Individual fund data
for each of these non-major governmental funds is provided in the form of combining statements in the
non-major governmental funds section of this report.
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48
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2014
The City adopts an annual budget for all its funds. A budgetary comparison statement is provided for all
funds with an annually adopted budget to demonstrate compliance with their respective budgets. The
budgetary comparison statements are located in the basic financial statements. The non-major
governmental fund budgetary comparisons are located in the non-major governmental funds section of
the report.
Fiduciary Funds. Fiduciary funds, which consist solely of trust and agency funds, are used to account
for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in
the government-wide financial statements because the resources of the fund are not available to support
the City's own programs. Fiduciary funds are custodial in nature and, therefore, the accounting used
does not involve the measurement of the results of operations. The basic fiduciary fund financial
statement can be found on pages 27-28 of this report. The assets, liabilities, net position and operations
of the dissolved Agency were transferred to the"Successor Agency Private Purpose Trust Fund".
Notes to the Basic Financial Statements. The notes to the basic financial statements provide
additional information that is essential to a full understanding of the data provided in the government-wide
and fund financial statements. The notes to the basic financial statements can be found on pages 29-66
of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The City has continued to present its financial statements under the reporting model required by GASB
34. A comparative analysis of the government-wide data has been included in this report.
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the City, assets exceeded liabilities by $361 million at the close of the current
fiscal year.
The City's net investment in capital assets, net of related debt reflects a positive $260 million. As shown
on Table 1, the largest portion of the City's net position (72%) is its investment in capital assets. The City
uses these capital assets (parks, streets, sidewalks, rights of way etc.) to provide services to citizens;
consequently, these assets are not available for future spending.
An additional portion of the City's net position (24%) represents resources that are subject to external
restrictions on how they may be used. The major restrictions on net position are funding source
restrictions. The remaining balance of total net position (4%) is unrestricted and may be used to meet the
City's obligations to citizens and creditors in accordance with the finance-related legal requirements
reflected in the City's fund structure. At the end of the fiscal year ended June 30, 2014, the City reported
positive balances in all three categories of net position, both for the City as a whole, as well as for its
separate governmental activities.
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49
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2014
Table 1
Net Position
Governmental Activities
As of June 30, 2014 and 2013
2014 2013
Assets:
Current and other assets $ 104,830,895 $ 95,273,076
Capital Assets 259,798,991 262,271,564
Total Assets: 364,629,886 357,544,640
Liabilities:
Other liabilities 3,302,288 3,105,577
Total Liabilities: 3,302,288 3,105,577
Net Position:
Net invested in capital assets 259,798,991 262,271,564
Restricted 85,872,675 82,125,331
Unrestricted 15,655,932 10,042,168
Total Net Position, as restated $ 361,327,598 $ 354,439,063
The City's net position increased by $6.9 million during the current fiscal year as a result of increase
development activity within the City.
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50
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2014
Table 2
Changes in Net Position
Governmental Activities
For the Years Ended June 30,2014 and 2013
2014 2013
Revenues:
Program Revenues:
Charges for services $ 13,859,658 $ 6,525,531
Operating contributions and grants 4,364,461 3,533,608
Capital contributions and grants 2,010,143 1,879,634
General Revenues:
Property taxes, levied for general purposes 6,841,765 6,776,729
Franchise taxes 1,222,759 1,222,956
Sales taxes 2,695,884 2,730,871
Sales taxes in lieu 1,089,362 875,160
Motor vehicle in lieu tax, unrestricted 15,942 19,262
Investment income 1,153,683 142,222
Other 492,755 299,730
Total Revenues: 33,746,412 24,005,703
Expenses:
General government 2,169,069 4,149,965
Public safety 6,882,753 6,550,936
Public services 11,779,873 9,948,865
Parks and recreation 6,026,182 5,755,528
Total Expenses: 26,857,877 26,405,294
Increase(decrease) in net position 6,888,535 (2,399,591)
Net position, beginning of year, as restated 354,439,063 356,838,654
Net position,end of year $ 361,327,598 $ 354,439,063
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51
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2014
Program Revenues
Capital
Contributions and
Grants,10%
OperatlnR Charges for
Contributions and Services,68%
Grants,22%
General Revenues
Motor vehicle
in lieu tax Investment
1% income Other
Sales tax 8% f 4%
in lieu
5% i l y'.;;.
Property taxes
517
Sales taxes
20%
•
•
Franchise
taxes
5%
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52
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2014
FINANCIAL ANALYSIS OF THE CITY'S MAJOR FUNDS
As noted earlier, the City uses fund accounting to demonstrate compliance with finance-related legal
requirements.
Governmental Funds. The focus of the City's governmental funds is to provide information on near-term
inflows, outflows, and net resources. Such information is useful in assessing the City's current financial
requirements or its liquidity. Beginning fiscal year ending June 30, 2011, GASB 54 required the
implementation of the new fund balance classification that focuses on the constraints on the use of
resources and the source of the constraints. The five (5) fund balance categories are:
Nonspendable — net resources that cannot be spent because of their form or those
resources that should be maintained intact
Restricted — amounts constrained to specific purpose by external providers, by law
through constitutional provisions or by enabling legislation
Committed — funds are limited to a specific purpose by government itself through
resolution or ordinance
Assigned — resources intended for a specific purpose by the governing body or official
delegated by the governing body
Unassigned — represents the General Fund net residual fund balance available for any
purposes and other governmental funds in a deficit position.
As of the end of the current fiscal year, the City's governmental funds reported total fund balances of
$98,342,858. This is an increase of$8,360,563 in comparison with the prior year. $10,889,688 or 11% is
nonspendable, $49,389,385 or 50% is restricted to specific purpose, $698,395 or 1% is committed,
$36,190,577 or 37% is assigned and $1,174,813 or 1% of the fund balances constitutes unassigned fund
balance.
General Fund
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the total
fund balance of the General Fund was $3,635,899, which increased by $723 over prior year. As a
measure of the General Fund's liquidity, it may be useful to compare total fund balance to total fund
expenditures. Total fund balance represents 25% of total General Fund expenditures and transfers out.
This is a healthy reserve.
Key factors for revenues and expenses when compared to fiscal year 2012/13 are as follows:
• The City's property tax revenues increased by $65,037 or 1.0%.
• Sales tax revenues decreased by approximately$34,987 or 1.3%.
• The Sales Tax Compensation or "triple flip" increased by $214,202 or 24.5%. This year the City
received amounts due from the prior years.
• Interest earnings increased by $258,166 or 320% due to market value losses in the prior years
and a correction in last year's calculation.
• Expenditures and transfers out ended the year approximately $0.7 million more than the prior
year figure due to increased spending in capital outlay and policing.
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53
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2014
Street and Traffic Safety Fund (Includes the Traffic System Management Fund, City-Wide
Traffic Mitigation Fund and Crossing Guard Fund)
The fund balance of the Street and Traffic Safety Fund increased by $1.7 million due to increased
fees by new development within the City.
Assessment District Fund
The fund balance of the Assessment District Fund decreased by $434,147 from the prior year.
Increasing operating costs of water and landscaping caused this deficit. The General Fund will cover
this deficit in the following year's budget.
Parks/Public Facilities Fund
The fund balance of the Parks/Public Facilities Fund increased by $1.1 million from the prior year due
to increased fees by new development within the City.
Los Angeles Area of Contribution Fund
The fund balance of the Los Angeles Area of Contribution Fund increased by $788,282 from the prior
year due to increased fees by new development within the City.
Low and Moderate Income Housing Asset Fund
The City elected to become the Successor Housing Agency and created the Low and Moderate
Income Housing Asset Fund for this purpose. There was little activity this past year.
Prop 1B Local Streets and Roads Fund
This fund received a grant in the amount of approximately $1.1 million for the purchase of two CNG
busses and the expansion of the Moorpark Metrolink North Parking.
Community Development Fund
This fund experienced a dramatic increase in fees and activities due to new housing development
within the City.
Police Facilities Fee Fund
The fund balance of the Police Facilities Fund improved by $201,025 from the prior year. These
funds are derived from new construction fees and transferred to the Endowment Fund as payback for
the loan to construct the Police Services Center.
Special Projects Capital Projects Fund
Per City Council Policy, the General Fund transferred fund balance in excess of $3 million to the
Special Projects Capital Projects Fund. This amount was $412,098 this past year. The Special
Projects Fund transferred about $1.8 million to fully fund the Equipment Replacement Fund. The
June 30, 2014 fund balance is about$25.5 million
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54
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2014
Non-Major Governmental Funds
The fund balance of all other Non-Major Governmental Funds grew by $6.3 million from the previous
fiscal year due to the transfer of $1.8 million to the Equipment Replacement Fund and increased fees
from new development within the City.
The Equipment Replacement Fund is currently fully funded with a fund balance of$2.4 million.
General Fund Budgetary Highlights
The City adopts annual appropriated operating budgets for its governmental funds (General Fund,
Special Revenue Funds, Debt Service Funds, and Capital Project Funds {except for the Moorpark
Highlands Improvement Fund as these sources have been designated for specific projects in accordance
with the Bond's Official Statement}) and reports the results of operation on a budget comparison basis.
In preparing its budgets, the City attempts to estimate its revenues using realistic, but conservative,
methods so as to budget its expenditure appropriations and activities in a prudent manner. As a result,
the City Council adopts budget adjustments during the course of the fiscal year to reflect both changed
priorities and availability of additional revenues to allow for expansion of existing programs. During the
course of the year, the City Council amended the originally adopted budget to re-appropriate prior year
approved projects and expenditures, as well as approving many other adjustments for the current year.
The results of the General Fund for the year ended June 30, 2014, were revenues exceeding
expenditures by approximately $2.5 million which was transferred to the Special Projects Fund.
Revenues plus Transfers In were $402,796 more than the budget and expenditures plus Transfers Out
ended the year under budget by$2.2 million.
CAPITAL ASSET AND LONG-TERM LIABILITIES
Capital Assets. The City's investment in capital assets as of June 30, 2014, amounted to $260 million
(net of accumulated depreciation). This investment, detailed in Table 3, includes land, rights of way,
construction in progress, buildings and improvements, machinery and equipment, and infrastructure. The
total decrease in the City's investment in capital assets for the current fiscal year Was$2.5 million.
Table 3
Capital Assets (net of depreciation)
Governmental Activities
As of June 30, 2014 and 2013
2014 2013
Land $ 39,380,903 $ 39,380,903
Rights of Way 123,066,830 123,066,830
Construction in Progress 10,529,962 9,681,261
Buildings and inprovements 27,733,353 28,807,241
Machinery and equipment 2,481,206 2,637,862
Infrastructure 56,606,737 58,697,467
Total $ 259,798,991 $ 262,271,564
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55
CITY OF MOORPARK
MANAGEMENTS DISCUSSION AND ANALYSIS
JUNE 30, 2014
As a result of the implementation of GASB No. 34, the City has continued to account for infrastructure
assets on its financial statements. The accompanying government-wide financial statements include
those infrastructure assets that were either completed during the current fiscal year or considered
construction in progress at current fiscal year-end.
Additional information on the City's capital assets can be found in Note 5 on pages 48 to 49 of this report.
Long-term Liabilities
At the end of the current fiscal year, the City's long-term liabilities outstanding are $651,829, which is the
employee compensated absences payable. Additional information on the City's long-term liabilities can
be found in Note 6 on page 49 of the basic financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The slow economic recovery in conjunction with the State's efforts to address its budget deficit by taking
resources from cities have combined to cause a strain in the City's General Fund. It should be noted that
increases in General Fund revenue categories provide optimism for the future, but it is uncertain if these
increases will be sustainable over the foreseeable future. In addition, costs continue to outpace any
growth seen in major revenues such as property and sales tax. While these categories may not be
declining and even increase as was the case this past fiscal year, increases in pension costs, parks and
landscape maintenance and the Ventura County Sheriffs Contract continue to exceed revenue gains.
The State's "Triple Flip" payment plan remains in effect as the State attempts to repay the $15 billion
deficit reduction bonds from FY 2004-05. The impact to the City will be on cash flow and the subsequent
reduction in interest income due to biannual (catch-up payments) rather than monthly sales tax payments.
The City has additional protections from the State taking our monetary resources thanks to the voter
passage of Proposition 22 in November 2010. However, on July 29, 2011, the Governor of the State of
California signed Assembly Bills x1 26 (ABx1 26) and on December 29, 2011, the California Supreme
Court issued their ruling upholding the constitutionality of ABx1 26; thereby all redevelopment agencies
within the State of California are abolished.
For fiscal year 2014/15, the City took into consideration the following factors in preparing the budget:
• Sales Tax revenues assume a 3% increase from fiscal year 2013/14.
• Property Tax and Vehicle License fees revenue are projected to increase slightly.
• Interest income will remain stable at an average rate of return of just over 1%.
• Increase of 0.75% in PERS employer retirement rate from 10.282% to 11.032% effective July 1,
2014.
• Increase in employee compensation from a general 1% cost of living adjustment and increases in
medical insurance premiums.
• Projections indicate our cost for general liability and workers compensation insurance will both
increase for fiscal year 2014/15 when compared to fiscal year 2013/14 actual payments.
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56
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2014
A priority of the City is to maintain high quality of services while adopting a balanced budget. As in prior
years, the fiscal year 2014/15 budget as adopted by the City Council is a balanced budget and will serve
as a guide in planning for the future.
REQUESTS FOR INFORMATION
This management's discussion and analysis is designed to provide citizens, taxpayers, customers,
investors, and creditors with a general overview of the City's finances and to demonstrate the City's
accountability for the money it receives. If you have questions or need additional financial information,
please contact the Finance Department at City Hall, 799 Moorpark Avenue, Moorpark, CA 93021, or
www.MoorparkCA.gov.
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58
BASIC FINANCIAL STATEMENTS
59
City of Moorpark
Statement of Net Position
June 30, 2014
Governmental
Activities
ASSETS
Cash and investments $ 92,380,585
Receivables, net:
Accounts 1,406,956
Interest 217,394
Prepaid items 54,506
Net OPEB asset 134,000
Property held for resale 8,096,221
Long term notes receivables 2,541,233
Capital assets, net of accumulated depreciation
Land 39,380,903
Rights of way 123,066,830
Construction in progress 10,529,962
Buildings and improvements 27,733,353
Machinery and equipment 2,481,206
Infrastructure 56,606,737
Total assets 364,629,886
LIABILITIES
Accounts payable and accrued liabilities 2,650,459
Noncurrent liabilities:
Due within one year 40,096
Due in more than one year 611,733
Total liabilities 3,302,288
NET POSITION
Net investment in capital assets 259,798,991
Restricted for:
Public services 66,077,650
Recreation services 4,832,755
Public safety 379,229
Housing activities 14,583,041
Unrestricted 15,655,932
Total net position $ 361,327,598
The accompanying notes arc an integral part of these financial statements.
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61
City of Moorpark
Statement of Activities
Year Ended June 30, 2014
Program Revenues
Operating Capital Net
Charges for Contributions Contributions Governmental
Functions/Programs Expenses Service and Grants and Grants Activities
Primary Government
Governmental activities:
General government $ 2,169,069 $ 1.474.249 $ - $ - $ (694,820)
Public safety 6,882,753 2,657,332 - - (4,225,421)
Public services 11,779,873 7,815,032 4.364.461 2.010,143 2,409,763
Parks and recreation 6,026,182 1,913.045 - - (4,113,137)
Total governmental activities 26,857,877 13,859,658 4,364,461 2,010.143 (6,623,615)
Total primary government $ 26,857,877 $ 13,859,658 $ 4,364,461 $ 2,010,143
General revenues:
Taxes:
Property tax,levied for general purpose 6,841,765
Franchise tax 1,222,759
Sales tax 2,695,884
Sales tax in lieu 1,089,362
Motor vehicle in lieu tax,unrestricted 15,942
Investment income 1,153,683
Other 492,755
Total general revenues 13,512,150
Change in net position 6,888,535
Net position,beginning of year 354,439,063
Net position,end of year $ 361,327,598
The accompanying notes arc an integral part of these financial statements.
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City of Moorpark
Balance Sheet
Governmental Funds
June 30, 2014
Special Revenue
Street and Assessment
General Traffic Safety Districts
ASSETS
Cash and investments $ 3,341,725 $ 19,809,297 $ 5,363,230
Receivables:
Accounts 904,896 - 34,412
Interest 71,690 47,984 14,418
Notes and loans - -Due from other funds - - -
Prepaid items 24,815 10,156 -
Property held for resale 611,084 - -
Total assets $ 4,954,210 $ 19,867,437 $ 5,412,060
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 1,292,672 $ 141,143 $ 247,821
Due to other funds - - -
Unavailable revenues 25,639 - 433
Total liabilities 1,318,311 141,143 248,254
Deferred inflows of resources:
Deferred loans - - -
Fund balances:
Nonspendable 635,899 10,156 -
Restricted - 19,716,138 5,163,806
Committed - - -
Assigned - - -
Unassigned 3,000,000 - -
Total fund balances(deficit) 3,635,899 19,726,294 5,163,806
Total liabilities,deferred inflows of
resources and fund balances $ 4,954,210 $ 19,867,437 $ 5,412,060
The accompanying notes are an integral part of these financial statements.
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63
Continued
Special Revenue
Los Angeles Low-Mod Prop 18
Parks/Public Area of Income Local Streets Community
Facilities Contribution Housing Asset and Roads Development
$ 3,146,934 $ 11,599,777 $ 233,448 $ 1,098,574 $ 577,653
- - - 648
6,462 28,294 2,155 384
431,674 1,953,642 - -
177,006 - - -
- - - - 19,535
- - 7,429,564 - -
$ 3,153,396 $ 12,236,751 $ 9,616,654 $ 1,100,729 $ 598,220
$ 5,069 $ 40,084 $ - $ - $ 597,630
932,848 - - - -
- 11,750 1,091,037 573
937,917 40,084 11,750 1,091,037 598,203
- 431,675 1,953,060 - -
177,006 7,429,564 - -
2,215,479 11,587,986 222,280 9,692 -
- - 17
2,215,479 11,764,992 7,651,844 9,692 17
$ 3,153,396 $ 12,236,751 $ 9,616,654 $ 1,100,729 $ 598,220
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64
City of Moorpark
Balance Sheet, (continued)
Governmental Funds
June 30, 2014
Capital Projects
Nonmajor
Police Special Governmental
Facilities Projects Funds
ASSETS
Cash and investments $ 304 $ 24,549,778 $ 22,659,865
Receivables:
Accounts - - 467,000
Interest 157 - 45,850
Notes and loans - - 155,917
Due from other funds - 932,848 1,648,642
Prepaid items - - -
Property held for resale - - 55,573
Total assets $ 461 $ 25,482,626 $ 25,032,847
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ - $ 326,040
Due to other funds 1,648,642 - 177,006
Unavailable revenues - - 39,994
Total liabilities 1,648,642 - 543,040
Deferred inflows of resources:
Deferred loans - - 149,417
Fund balances:
Nonspendable - 932,848 1,704,215
Restricted - - 10,474,004
Committed - - 698,395
Assigned - 24,549,778 11,640,782
Unassigned (1,648,181) - (177,006)
Total fund balances(deficit) (1,648,181) 25,482,626 24,340,390
Total liabilities,deferred inflows of
resources and fund balances $ 461 $ 25,482,626 $ 25,032,847
The accompanying notes are an integral part of these financial statements.
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65
Continued
Total
Governmental
Funds
$ 92,380,585
1,406,956
217,394
2,541,233
2,758,496
54,506
8,096,221
$ 107,455,391
$ 2,650,459
2,758,496
1,169,426
6,578,381
2,534,152
10,889,688
49,389,385
698,395
36,190,577
1,174,813
98,342,858
$ 107,455,391
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67
City of Moorpark
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
June 30, 2014
Fund balances of governmental funds $ 98,342,858
Amounts reported for governmental activities in the statement of net
position are different because:
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds. 259,798,991
Long-term notes and loans receivable are not current financial resources and,
therefore, are deferred in the governmental funds. 2,534,152
Certain assets are not available to pay for current-period expenditures
and therefore are deferred in the funds. The availabity criteria does not apply
to the government-wide statements. 1,169,426
Long term liabilities are not due and payable
in the current period and, therefore, are not reported in funds.
Compensated absences payable (651,829)
The City is required to report a net Other Post Employment Benefits (OPEB)
obligation in accordance with Governmental Accounting Standards Board (GASB)
Statement No. 45. The City has contributed more than the required ARC to
the retiree medical plan and reports the OPEB obligation as an asset on the
statement of net assets. 134,000
Net position of governmental activities $ 361,327,598
the accompanying notes are an integral part of these financial statements.
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City of Moorpark
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2014
Special Revenue
Street and Assessment
General _ Traffic Safety Districts
REVENUES
Taxes $ 11,849,770 $ - $ -
Licenses and permits 129,351 - -
Fines and forfeitures 221,495 -Use of money and property 610,465 274,971 77,785
Charges for services 1,247,745 2,243,108 7,592
Intergovernmental 69,036 - -
Maintenance assessments - - 1,958,856
Other revenue 281,834 - 4,374
Total revenues 14,409,696 2,518,079 2,048,607
EXPENDITURES
Current:
General government 1,725,569 - -
Public safety 6,303,971 - -
Public services 1,935,529 350,437 375,637
Parks and recreation 1,589,008 - 3,735,502
Capital Outlay 389,219 358,254 5,823
Total expenditures 11,943,296 708,691 4,116,962
Excess(deficiency)of revenues
over(under) expenditures 2,466,400 1,809,388 (2,068,355)
OTHER FINANCING SOURCES (USES)
Transfers in - - 1,634,208
Transfers out (2,465,677) (75,233) -
Total other financing sources(uses) (2,465,677) (75,233) 1,634,208
Net change in fund balances 723 1,734,155 (434,147)
Fund balances, beginning of year 3,635,176 17,992,139 5,597,953
Fund balances (deficit), end of year $ 3,635,899 $ 19,726,294 $ 5,163,806
The accompanying notes arc an integral part of these financial statements.
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69
Continued
Special Revenue
Los Angeles Low-Mod Prop 1B
Parks/Public Area of Income Local Streets Community
Facilities Contribution Housing Asset and Roads Development
$ - $ $ $ $ -
- - - - 1,150,268
- - - - 4,766
46,523 150,907 3,123 9,692 -
1,168,224 913,758 4,950 - 1,344,555
- - - - 855
1,214,747 1,064,665 8,073 9,692 2,500,444
- - 459 - -
- 39,728 - - 2,918,166
16,650 - - - -
24,283 236,655 - 1,733
40,933 276,383 459 - 2,919,899
1,173,814 788,282 7,614 9,692 (419,455)
- - - 419,372
(102,021) - - - -
(102,021) - - - 419,372
1,071,793 788,282 7,614 9,692 (83)
1,143,686 10,976,710 7,644,230 - 100
$ 2,215,479 $ 11,764,992 $ 7,651,844 $ 9,692 $ 17
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City of Moorpark
Statement of Revenues, Expenditures, and Changes in Fund Balances, (continued)
Governmental Funds
Year Ended June 30, 2014
Capital Projects
Non major
Police Special Governmental
Facilities Projects Funds
REVENUES
Taxes $ - $ - $ 1,082,211
Licenses and permits - - -
Fines and forfeitures - - 199,583
Use of money and property 760 43,872 315,599
Charges for services - - 3,855,402
Intergovernmental - 18,023 3,170,764
Maintenance assessments 200,265 -Other revenue - - 151,549
Total revenues 201,025 61,895 8,775,108
EXPENDITURES
Current:
General government - - 20,000
Public safety - - 339,579
Public services - - 3,507,354
Parks and recreation - - 13,441
Capital Outlay - 564,471
Total expenditures - - 4,444,845
Excess(deficiency)of revenues
over(under) expenditures 201,025 61,895 4,330,263
OTHER FINANCING SOURCES (USES)
Transfers in - 412,098 2,252,366
Transfers out - (1,763,551) (311,562)
Total other financing sources (uses) - (1,351,453) 1,940,804
Net change in fund balances 201,025 (1,289,558) 6,271,067
Fund balances, beginning of year (1,849,206) 26,772,184 18,069,323
Fund balances (deficit), end of year $ (1,648,181) $ 25,482,626 $ 24,340,390
The accompanying notes arc an integral part of these financial statements.
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71
Continued
Total
Governmental
Funds
$ 12,931,981
1,279,619
425,844
1,533,697
10,785,334
3,257,823
2,159,121
438,612
32,812,031
1,746,028
6,643,550
9,126,851
5,354,601
1,580,438
24,451,468
8,360,563
4,718,044
(4,718,044)
8,360,563
89,982,295
$ 98,342,858
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72
City of Moorpark
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2014
Net change in fund balance-total governmental funds $ 8,360,563
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However,in the
statement of activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense.Asset deletions also affect
the amounts reported in the statement of activities.This activity is reconciled
as follows:
Repairs and
Maintenance Capital Outlay
Capital outlays and other capital expenditures $ 463,386 $ 1,117,052
Depreciation expense (3,445,305)
Asset disposals (144,320) (2,472,573)
Long-term notes and loans receivable are reported as expenditures when made and
as a revenue when repaid in the governmental funds. However,there is no impact in the
statement of activities when these notes and loans are made or repaid.This amount
represents the net change in the long term notes and loans receivable. (30,618)
Revenues that are measurable but not available are not recorded as revenues under the
modified accrual basis of accounting. 934,381
Some expenses reported in the statement of activities do not require the use of current
financial resources and,therefore,are not reported as expenditures in governmental funds.
Increase in compensated absences $ (37,218)
Increase in OPEB asset 134,000
Change in net position of governmental activities $ 6,888,535
The accompanying notes are an integral part of these financial statements.
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73
City of Moorpark
Statement of Fiduciary Net Position
June 30, 2014
Successor Agency
Private Purpose Agency
Trust Fund Fund
ASSETS
Cash and investments $ 2,928,438 $ 4,009,866
Cash and investments with fiscal agent 4,098,910 7,437,190
Receivable:
Accounts 560,000 61,070
Prepaid insurance premium 208,648
Land held for resale 11,402,135 -
Contruction in progress 119,736 -
Capital assets, net 9,049,372 -
Total assets 28,367,239 $ 11,508,126
LIABILITIES
Accounts payable 327,028 $ 236,241
General deposits - 3,773,654
Bonds payable-due within one year 665,000 -
Bonds payable-due in more than one year 25,670,000 -
Amortizable charge-liability (244,049) -
Due to bondholders - 7,498,231
Total liabilities 26,417,979 $ 11,508,126
NET POSITION
Held in trust for the Successor Agency $ 1,949,260
The accompanying notes arc an integral part of these financial statements.
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74
City of Moorpark
Statement of Changes in Fiduciary Net Position
Private Purpose Trust Fund - Successor Agency
Year Ended June 30, 2014
Successor Agency
Private-Purpose
Trust Fund
ADDITIONS
RPTTF distribution $ 2,505,623
Investment earnings 98,957
Other receipts 3,496
Total additions 2,608,076
DEDUCTIONS
Debt service payments- interest 1,258,151
Depreciation 193,881
Amortization of deferred charges 20,120
Other payments 324,390
Property maintenance 1293
Total deductions 1,797,835
Change in net position 810,241
Net position, beginning of year, as restated (see Note 15) 1,139,019
Net position, end of year $ 1,949,260
The accompanying notes arc an integral part of these financial statements.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
NOTE DESCRIPTION PAGE
1 Summary of Significant Accounting Policies 29
2 Cash and Investments 38
3 Notes and Loans Receivable 44
4 Interfund Transactions 46
5 Capital Assets and Depreciation 48
6 Long-Term Liabilities 49
7 Retirement Plan 50
8 Other Post Employment Benefits 51
9 Conduit Debt - Revenue Bonds 53
10 Special Assessment Bonds 54
11 Risk Management 55
12 Classification of Net Position and Fund Balance 57
13 Commitments and Contingencies 61
14 Successor Agency- Fiduciary Private Purpose Trust Fund 62
15 Restatement of Net Position 66
16 Subsequent Event 66
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77
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Moorpark (City) conform to accounting principles generally
accepted in the United States of America as applicable to governments. The Governmental
Accounting Standards Board (GASB) is the accepted standard setting body for governmental
accounting and financial reporting principles. The following is a summary of the significant
policies.
A) Reporting Entity
The reporting entity "City of Moorpark" includes the accounts of the City, the Moorpark Public
Financing Authority (PFA), and the Industrial Development Authority of the City of Moorpark
(IDA).
The City was incorporated in July, 1983 as a general law city and operates under a
Council/Manager form of government.
The PFA was formed in 1993 as a joint powers authority between the City and the former
Moorpark Redevelopment Agency (Agency) in order to provide financial assistance to the
City and the Agency by issuing debt and financing the construction of public facilities.
The IDA was formed in 1985 pursuant to the California Industrial Development Financing Act
(ACT). Its purpose is to finance the acquisition and development of certain industrial activities
as permitted by the Act and to issue bonds for the purpose of enabling industrial firms to
finance the cost of such activities.
The City is the primary government unit. Component units are those entities which are
financially accountable to the primary government, either because the City appoints a voting
majority of the component unit's Board, or because the component unit will provide a financial
benefit or impose a financial burden on the City.
The City has accounted for the PFA and IDA as "blended" component units. Despite being
legally separate, they are so intertwined with the City, they are in substance, part of the City's
operations. The PFA and IDA were inactive during the fiscal year ended June 30, 2014.
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78
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
A) Reporting Entity, (continued)
The following specific criteria were used in determining that the PFA and the IDA are
"blended" component unit:
1) The members of the City Council also act as the governing body of the PFA, and the IDA.
2) The City, the PFA, and the IDA are financially interdependent.
3) The PFA, and the IDA are managed by employees of the City.
The PFA and IDA did not issue separate financial statements in the current fiscal year.
B) Accounting and Reporting Policies
The City has conformed to the pronouncements of the GASB, which are the primary
authoritative statements of the accounting principles generally accepted in the United States
of America applicable to state and local governments. In accordance with GASB Statement
No. 20, the City applies all applicable Financial Accounting Standards Board (FASB)
pronouncements issued on or before November 30, 1989, unless any such pronouncements
contradict GASB pronouncements.
C) Description of Funds
The accounts of the City are organized on the basis of funds, 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 balance, revenues, and
expenditures. The following types of funds are in use by the City:
Governmental Fund Types
General Fund- Used to account for and report all financial resources not accounted for and
reported in another fund.
Special Revenue Funds - Used to account for and report the proceeds of specific revenue
sources that are restricted or committed to expenditure for specific purposes other than debt
service or capital projects.
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79
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
C) Description of Funds, (continued)
Capital Projects Funds - Used to account for and report financial resources that are
restricted, committed, or assigned to expenditure for capital outlays, including the acquisition
or construction of capital facilities and other capital assets.
Fiduciary Fund Types:
Agency Funds - Used to account for assets held by the City as an agent for individuals,
private organizations, other governments and/or other funds.
Private Purpose Trust Fund- Used to account for the resources, obligations and activities of
the Successor Agency of the Redevelopment Agency of the City of Moorpark (SARA) as
directed by the Oversight Board to settle the affairs of the dissolved agency(see Note 14).
D) Basis of Accounting and Measurement Focus
Government-Wide Financial Statements
The City's Government-Wide Financial Statements include a Statement of Net Position and a
Statement of Activities. These statements present summaries of Governmental Activities for
the City. These statements are presented on an "economic resources" measurement focus
and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities,
including capital assets and infrastructure as well as long-term debt, are included in the
accompanying Statement of Net Position. The Statement of Activities presents changes in
net position. Under the accrual basis of accounting, revenues are recognized in the period in
Which they are earned while expenditures are recognized in the period in which the liability is
incurred. The Statement of Activities demonstrates the degree to which the direct expenses
of a given function are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function. The types of transactions reported as program revenues
for the City are reported in three categories: 1) charges for services, 2) operating
contributions and grants, and 3) capital contributions and grants. Charges for services include
revenues from customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function. Operating contributions and grants
include revenues restricted to meeting the requirements of a particular operating function and
may include state shared revenues and grants. Capital contributions and grants include
revenues restricted to meeting the requirements of a particular capital function and may
include grants and developer fees. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
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80
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Basis of Accounting and Measurement Focus, (continued)
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to
interfund activities, payables, and receivables. All internal balances in the government-wide
financial statements have been eliminated.
Sometimes the government will fund outlays for a particular purpose from both restricted and
unrestricted resources. In order to calculate the amounts to report as restricted-net position
and unrestricted-net position in the government-wide financial statements, a flow assumption
must be made about the order in which the resources are considered to be applied. It is the
City's policy to consider restricted-net position to have been depleted before unrestricted-net
position is applied.
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and Statement of
Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds
and aggregated non-major funds. An accompanying schedule is presented to reconcile and
explain the differences in fund balances as presented in these statements to the net position
presented in the Government-wide Financial Statements. The City has presented all major
funds that met qualifications of GASB Statement No. 34. All governmental funds are
accounted for on a spending or "current financial resources" measurement focus and the
modified accrual basis of accounting. Accordingly, only current assets and current liabilities
are included on the Balance Sheets.
The Statement of Revenues, Expenditures, and Changes in Fund Balances presents
increases (revenues and other financing sources) and decreases (expenditures and other
financing uses) in fund balances. Revenues are recognized in the accounting period in which
they become both measurable and available to finance expenditures of the current period.
"Measurable" means that the amount of the transaction can be determined, and "available"
means collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period. Accrued revenues include property taxes received within 60
days after year-end, taxpayer assessed taxes such as sales taxes, and earnings on
investments. Grant funds earned but not received are recorded as a receivable, and grant
funds received before the revenue recognition criteria have been met are reported as
deferred revenues. Expenditures are recorded when the fund liability is incurred, if
measurable, except for unmatured interest on general long-term debt, which is recognized
when due.
Sometimes the government will fund outlays for a particular purpose from both restricted and
unrestricted resources. In order to calculate the amounts to report as restricted, committed,
assigned and unassigned fund balance in the governmental fund financial statements, a flow
assumption must be made about the order in which the resources are considered to be
applied. It is the City's policy to consider restricted fund balance to have been depleted
before using any of the unrestricted components of fund balance.
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81
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Basis of Accounting and Measurement Focus, (continued)
Furthermore, when the components of unrestricted fund balance can be used for the same
purpose, committed fund balance is depleted first, followed by assigned fund balance.
Unassigned fund balance is applied last.
The City reports the following major governmental funds:
The General Fund is the governments primary operating fund. It accounts for all financial
resources of the City, except those required to be accounted for in another fund. Sources of
revenue are property tax, sales tax, franchise and transfer taxes, fines and forfeitures, fees
for services and interest.
The Street and Traffic Safety Special Revenue Fund is used to account for fees used for
street maintenance, right-of-way acquisition and street construction. Sources of revenue are
traffic fines and forfeitures collected through Ventura County Superior Courts.
The Assessment Districts Special Revenue Fund is used to account for funds received by the
City for maintenance of community-wide parks, street lighting and landscaping. Sources of
revenue are property assessments collected by the Ventura County Tax Collector.
The Parks and Public Facilities Special Revenue Fund is used to account for fees used for
park and public facilities improvements as a result of additional development. Sources of
revenue are development fees.
The Los Angeles Area of Contribution Special Revenue Fund is used to account for the
financial resources for capital projects related to streets and other improvements within the
Los Angeles Avenue project area. Sources of revenues are development fees.
The Low and Moderate Income Housing Asset Special Revenue Fund is used to account for
the housing assets transferred from the former redevelopment agency and Low and
Moderate housing activities of the City. Sources of revenue are from sale of property and
repayment of loans. The fund activities are restricted to the same requirements as the former
Low and Moderate Income Housing Fund of the former Redevelopment Agency.
Proposition 1B Local Streets and Roads Special Revenue Fund is used to account for funds
received from the State of California Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006 (Proposition 1 B) for specified purposes, such as public transit and
passenger rail improvements; local street and road improvement; congestion relief and traffic
safety projects.
Community Development Special Revenue Fund is used to account for planning,
development, public works and engineering related expenditures. Sources of revenues are
from service fees collected from issuance of various types of permits, plan checks,
improvement inspections and other miscellaneous items.
The Police Facilities Fee Capital Projects Fund is used to account for the funds used to build
the new police facility. The source of revenue is a percentage of permit fees issued.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Basis of Accounting and Measurement Focus, (continued)
The Special Projects Capital Projects Fund is used to account for various City capital
improvement projects including major rehabilitation of streets, parks and facilities and other
infrastructure. Source of revenue is the General Fund balance monies in excess of
$3,000,000.
Fiduciary Funds Financial Statements
Fiduciary Funds Financial Statements include a Statement of Fiduciary Net Position and a
Statement of Changes in Fiduciary Net Position. The Fiduciary Funds are used to report
assets held in a trustee or agency capacity for others and therefore are not available to
support City programs. Since these assets are being held for the benefit of a third party,
these funds are not incorporated into the government-wide statements. The fiduciary funds
are accounted for using the accrual basis of accounting.
The City reports the following Private Purpose Trust Fund:
Private Purpose Trust Fund —This fund is used to account for the resources, obligations and
activities of the Successor Agency of the Redevelopment Agency of the City of Moorpark
(SARA) as directed by the Oversight Board to settle the affairs of the dissolved agency.
The City reports the following Agency Fund:
The agency fund accounts for developer deposits and assets held for property owners of
various assessment and community facilities districts. The agency fund is custodial in nature
(assets equal liabilities) and therefore does not involve measurement of results of operations.
E) Investments
The City has adopted the provisions of GASB Statement No. 31, Accounting and Financial
Reporting for Certain Investments and External Pools, Which requires governmental entities
to report certain investments at fair value in the balance sheet and recognize the
corresponding change in the fair value of investments in the year in which the change
occurred. In accordance with GASB Statement No. 31, the City has adjusted certain
investments to fair value(if material).
Investments are included within the• financial statement classifications of "cash and
investments"and "restricted cash and investments,"and are stated at fair value.
F) Property Held for Resale/Development
Property held for resale in the General Fund, Low and Moderate Income Housing Asset Fund
and City Affordable Housing Fund, represent land and buildings purchased by the City, or by
the former Agency and transferred to the City as housing assets. Such property is valued at
the lower of cost or estimated net realizable value and has been offset by nonspendable or
restricted fund balances to indicate that these assets constitute future projects and are
restricted or not available spendable resources. The balance at June 30, 2014 was
$8,096,221.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
G) Capital Assets
Capital assets, which include land, machinery and equipment (vehicles, computers, etc),
buildings and improvements, and infrastructure assets (street systems, storm drains, sewer
systems, etc.), are reported in the Governmental Activities column of the Government-wide
Financial Statements. Capital assets are defined by the City as all land; buildings and
improvements with an initial individual cost of more than $10,000; vehicles, computers and
equipment with an initial individual cost of more than $5,000; and improvements and
infrastructure assets with costs of more than $100,000. Such assets are recorded at historical
cost or estimated historical cost if purchased or constructed. Donated or annexed capital
assets are recorded at estimated market value at the date of donation or annexation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized. Depreciation is recorded in the
Government-wide Financial Statements on a straight-line basis over the useful life of the
assets as follows:
Building and Improvements 25 to 50 years
Vehicles, Computers, and Equipment 3 to 20 years
Infrastructure Assets
Roadway Network 7 to 100 years
Drain Network 20 to 100 years
Parks and Recreation Network 50 years
H) Unavailable Revenue
Unavailable revenue is recorded for monies collected in advance that have not been earned.
In the fund financial statements revenue is also unavailable when the availability criteria has
not been met. As of June 30, 2014, unavailable revenue in the Governmental Funds
amounted to$1,169,426.
I) Long-Term Debt
In the statement of net position of the government-wide financial statements, long-term debt
and other obligations are reported as liabilities. The balance showed as outstanding
represents compensated absences payable at June 30, 2014.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
J) Employee Compensated Absences
City employees may receive from 20 to 30 days vacation time or annual leave each year,
depending upon length of service. An employee may accumulate earned vacation time up to
a maximum of 720 hours or annual leave up to a maximum of 744 hours and administrative
leave up to a maximum of 120 hours, depending on position. The amount of maximum hours
for the leave accrual is based on the employee classification: regular employee,
management, department head or City Manager. Upon termination, employees are paid the
full value of their unused annual leave, administrative leave, vacation time, and a portion of
sick leave per management benefits and City's MOU. There is no fixed payment schedule for
employee compensated absences.
K) 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 9.1 percent of the one percent State levy. The 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.
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.
L) Claims and Judgments
When it is probable that a claim liability has been incurred, and the amount of the loss can be
reasonably estimated, the City records the estimated loss, net of any insurance coverage
under its self-insurance program. At June 30, 2014, in the opinion of the City Attorney, the
City had no material claims, which require loss provision in the financial statements. Small
claims and judgments are recorded as expenditures when paid.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
L) Claims and Judgments, (continued)
The City's self-insurance program is administered through the California Joint Powers
Insurance Authority (Authority). The Authority is a public entity risk pool, which is accounted
for under the provisions of GASB Statement No. 10. Claim losses recorded in the Authority
include both current claims and Incurred but Not Reported claims(IBNR). These deposits are
subject to retrospective adjustment. Favorable claims experience results in a refund of
deposits from the Authority and such refunds, if any, are recorded as a reduction of insurance
expenditures in the year received. Adverse claims experience results in the payment of
additional deposits and such deposits, if any, are recorded as insurance expenditures when
paid.
M) Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
N) Use of Restricted Resources
When both restricted and unrestricted resources are available for use, it is the City's policy to
use restricted resources first, and then unrestricted resources as they are needed.
0) Implementation of new GASB pronouncement
Effective July 1, 2013, the City adopted the provisions of GASB Statement No. 65, Items
Previously Reported as Assets and Liabilities. GASB 65 establishes accounting and financial
reporting standards that reclassify, as deferred outflows of resources or deferred inflows of
resources, certain items that were previously reported as assets and liabilities and
recognizes, as outflows of resources or inflows of resources, certain items that were
previously reported as assets and liabilities. Deferred amounts resulting from the refunding of
debt are reported as a deferred outflow of resources or a deferred inflow of resources and
recognized as a component of interest expense in a systematic and rational manner over the
remaining life of the old debt or the life of the new debt, whichever is shorter. Accordingly, the
Private Purpose Trust Fund's deferred amount on refunding of debt has been classified as a
deferred outflow of resources in the Private Purpose Trust Fund's statement of net position in
conformity with GASB 65. GASB 65 amended prior guidance with respect to the treatment of
debt issuance costs. Under GASB 65, debt issuance costs, except any portion related to
prepaid insurance costs, are recognized as an expense in the period incurred rather than
reported as an asset on the statement of net position and recognized as an expense in a
systematic and rational manner over the duration of the related debt. Accordingly, as noted in
Note 15 of the financial statements, the City has restated Private Purpose Trust Fund's
beginning net position for any unamortized debt issuance costs previously reported on the
Private Purpose Trust Fund's statement of net position in conformity with GASB 65.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
2) CASH AND INVESTMENTS
Cash and investments at June 30, 2014, consisted of the following:
City Treasury Deposits
Demand Deposits $ 5,584,900
Cash on Hand 1,750
Total City Treasury Deposits 5,586,650
City Treasury Investments
Local Agency Investment Fund (LAIF) 3,030,840
Ventura County Pool 33,498,069
Highmark Money Market 147,080
U.S. Treasury Notes 3,036,340
U.S.Agency Securities:
Federal National MTG Association 18,103,670
Federal Home Loan Bank 13,185,940
Federal Farm Credit Bank 7,112,420
Federal Home Loan MTG Corporation 10,103,460
Federal Agricultural MTG Corporation 5,514,420
Total City Treasury Investments 93,732,239
Cash and Investments With Fiscal Agent
Money Market 9,753,788
US Treasury Notes 1,197,637
Guaranteed Investment Contracts 584,675
Total Cash and Investments With Fiscal Agent 11,536,100
Total Cash and Investments $ 110,854,989
Cash and Investments are reported in the basic financial statements as follows:
Statement of Statement of Fiduciary
Net Position Net Position
Governmental Private Purpose Agency Fund Total
Activities Trust Fund
Cash and investments $ 92,380,585 $ 2,928,438 $ 4,009,866 $ 99,318,889
Cash and investments with fiscal agent - 4,098,910 7,437,190 11,536,100
Total $ 92,380,585 $ 7,027.348 $ 11,447,056 $ 110,854.989
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
2) CASH AND INVESTMENTS, (continued)
The City follows the practice of pooling cash and investments of all funds, except for funds
required to be held by fiscal agents under the provisions of bond indentures. Interest income
earned on pooled cash and investments is allocated on a quarterly basis to the various funds
based on average daily cash and investment balances. Interest income from cash and
investments with fiscal agents is credited directly to the related fund.
A) Authorized Investments
Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized for the City by the
California Government Code (or the City's investment policy, where more restrictive). The
table also identifies certain provisions of the California Government Code (or the City's
investment policy, where more restrictive) that address interest rate risk, credit risk, and
concentration of credit risk.
This table does not address investments of debt proceeds held by bond trustees that are
governed by provisions of debt agreements of the City, rather than the general provisions of
the California Government or the City's investment policy.
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity of Portfolio* In One Issuer
U.S.Treasury Obligations 5 years None None
U.S.Agency Securities 5 years None None
Bankers Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year None None
Medium-Term Notes 5 years 30% None
Money Market Mutual Funds N/A 20% None
County Pooled Investment Funds N/A None None
LAIF N/A None $ 50,000,000
'Excluding amounts held by bond trustees that are not subject to California Government
Code restrictions.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
2) CASH AND INVESTMENTS, (continued)
A) Authorized Investments, (continued)
The Policy, in addition to State statutes, establishes that funds on deposit in banks must be
federally insured or collateralized and investments shall (1) have maximum maturity not to
exceed five years and (2) be laddered and based on cash flow forecasts. The City's
investments comply with the established policy.
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the
City's investment policy. The table below identifies the investment types that are authorized
for investment held by bond trustees.
The table also identifies certain provisions of these debt agreements that address interest
rate risk, credit risk, and concentration of credit risk.
Authorized Investment Type Maximum Maturity
U.S. Treasury Obligations None
U.S. Agency Securities None
Banker's Acceptances 180 days
Commercial Paper 270 days
Money Market Mutual Funds N/A
Investment Contracts 30 years
B) Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates. One of the ways that the City
manages its exposure to interest rate risk is by purchasing a combination of shorter term and
longer term investments and by timing cash flows from maturities so that a portion of the
portfolio is maturing or coming close to maturity evenly over time as necessary to provide the
cash flow and liquidity needed for operations.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
2) CASH AND INVESTMENTS, (continued)
B) Interest Rate Risk, (continued)
Information about the sensitivity of the fair values of the City's investment to market interest
rate fluctuation is provided by the following table that shows the distribution of the Citys
investments by maturity.
Remaining maturity(in years)
Investment type Total Less then 1 1to2 2to3 3104 >4
LAW $ 3,030,840 $ 3,030640 $ - $ - $ - $
VenturaCountyPod 33,498,069 33,498,069 - - -
Hi9hmark Marey Market 147,080 147,080 - - - -
U.S.Treasury Notes 3,036,340 1,017.190 1,017.270 - - 1.001880
U S.Agency Securities-
Federal National MTG Assn. 18,103,670 - 1,017,090 - 12.051 700 5,034,880
Federal Home Loan Bank 13,185,940 1,016,100 4,150,730 1,011,040 977,000 6,031,070
Federal Fenn Credit Bank 7,112,420 4,040,580 - - 2,055,370 1,016,470
Federal National MTG Corp. 10,103,460 - 1,018,090 1,001,100 4998,640 3,085,630
Federal Agile MTG Corp. 5,514.420 - - 2,997.040 2,517,380
Held by bond trustee.
Money market funds 9,753,788 9,753,788 - - - -
U.S.Treasury Notes 1,197,637 1,197,637 - -Guaranteed Contracts 584,675 - - - 584,675
$ 105,268,339 $ 53,701,284 $ 7,203,180 Sr 2,012,140 $ 23,079,750 $ 19,271,985
C) Credit Risk and Concentration of Credit Risk
At June 30, 2014, the carrying amount of the City and Successor Agency's combined
deposits was $5,584,900. Bank balances, before reconciling items, were $4,682,733 at June
30, 2014, of which $4,682,733 were collateralized with securities held by the pledging
financial institution's trust department but not in the City or Successor Agency's name.
The California Government Code requires California banks and savings and loan
associations to secure government organizations' cash deposits by pledging securities as
collateral. This Code states that collateral pledged in this manner shall have the effect of
perfecting a security interest in such collateral superior to those of a general creditor.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
2) CASH AND INVESTMENTS, (continued)
C) Credit Risk and Concentration of Credit Risk, (continued)
According to California law, the market value of pledged securities with banking institutions
must equal at least 110% of the organization's cash deposits. California law also allows
institutions to serve City deposits by pledging first trust deed mortgage notes having a value
of 150% of the organization's total cash deposits. The organizations may waive collateral
requirements for cash deposits, which are insured for interest and non-interest bearing
accounts up to $250,000 by the Federal Deposit Insurance Corporation. The City, however,
does not normally waive the collateralization requirements. As of June 30, 2014, the City and
the Successor Agency combined have $4,432,733 in excess of the $250,000 limit of FDIC
coverage.
Investments
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to
the holder of the investment. This is measured by the assignment of rating by a nationally
recognized statistical rating organization. Presented below is the minimum rating required by
(where applicable) the California Government Code and the actual rating as of year-end for
each investment type.
The California Government Code places limitations on the amount that can be invested in
any one issuer (as detailed above). Investments in any one issuer (other than U.S. Treasury
securities, mutual funds, and external investment pools) that represent 5% or more of total
investments are as follows:
Credit Quality Distribution for Securities with Credit Exposure as a Percentage of Total
Investments:
Investment type Carrying Credit Percentage of
Value Rating Investments
LAIF $ 3,030,840 Not Rated 2.9%
Ventura County Pool 33,498,069 AAAf 31.8%
Highmark Money Market 147,080 AAA 0.1%
U.S.Treasury Notes 3,036,340 AA+ 2.9%
U.S.Agency Securities: 0.0%
Federal National MTG Assn. 18,103,670 AA+ 17.2%
Federal Home Loan Bank 13,185,940 AA+ 12.5%
Federal Farm Credit Bank 7,112,420 AA+ 6.8%
Federal National MTG Corp. 10,103,460 AA+ 9.6%
Federal Agric MTG Corp. 5,514,420 AA 5.2%
Held by bond trustee: 0.0%
Money market funds 9,753,788 Not Rated 9.3%
U.S.Treasury Notes 1,197,637 AA+ 1.1%
Guaranteed Contracts 584,675 Not Rated 0.6%
$ 105,268,339 100.0%
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•
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
2) CASH AND INVESTMENTS, (continued)
D) Local Agency Investment Fund (LAIF)
The LAIF is a special fund of the California State Treasury through which local governments
may pool investments. Each governmental agency may invest up to $50,000,000 in each
account in the fund. Investments in LAIF are highly liquid, as deposits can be converted to
cash within twenty-four hours without loss of interest or principal. The full faith and credit of
the State of California secures investment in LAIF. At June 30, 2014, accounts were
maintained in the name of the City for $3,030,840. At June 30, 2014, the fair value of the
State of California Pooled Money Investment Account (PMIA) including accrued interest was
$64,896,335,761. The PMIA portfolio had securities in the form of structured notes and asset-
backed securities. The PMIA has policies, goals, and objectives for the portfolio to make
certain that the goals of safety, liquidity, and yield are not jeopardized. These policies are
formulated by investment staff and reviewed by both the PMIA and LAIF Advisory Boards on
an annual basis. LAIF's and the City's exposure to credit, market, or legal risk is not
available. The City is a voluntary participant in the investment pool.
E) The Ventura County Treasurer's Investment Pool
The City holds investments in the County Pool that are subject to being adjusted to "fair
value."The City is required to disclose its methods and assumptions used to estimate the fair
value of its holdings in the County Pool. The City relied upon information provided by the
County Treasurer in estimating the City's fair value position of its holdings in the County Pool.
The City had a contractual withdrawal value of$33,498,069 at fiscal year end.
The Ventura County Treasurer's Investment Pool is a governmental investment pool
managed and directed by the elected Ventura County Treasurer. The County Pool is not
registered with the Securities and Exchange Commission. An oversight committee comprised
of local government officials and various participants provide oversight to the management of
the fund. The daily operations and responsibilities of the Pool fall under the auspices of the
County Treasurer's office. The City is a voluntary participant in the investment pool.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
3) NOTES AND LOANS RECEIVABLE
Notes and loans receivable activity for the year ended June 30, 2014, is as follows:
Beginning Ending
Balance Increases Decreases Balance
Notes receivable
Deferred property assessments $ 431050 $ 624 $ - $ 431,674
Moorpark 20.LP I 1254933 684994 - 1.939927
Moorpark 20.LP II 640000 15,000 (655000) -
Total notes receivable 2325,983 700,618 (655.000) 2,371,601
Loans receivable
Rehabilitation 28114 - - 28,714
First-time home buyer assistance-Affordable Housing 75,480 1900 (54,736) 22644
CalHome 128,093 20,000 (36,319) 111,774
Mountain Recreation 8 Conservation
Authonly 6,500 - - 6,500
Total loans receivable 238,787 21,900 (91,055) 169,632
Governmental activities Loans and Notes receivable $ 2,564,770 $ 722,518 $ (746,055) $ 2,541 233
A) Deferred Property Assessments Notes
In March 1993, the City entered into agreements with three property owners of the City of
Moorpark Assessment District No. 92-1 whereby in return for deferring the property owner's
assessment levy, the City received three promissory notes totaling $279,427. The notes bear
simple interest equivalent to the LAIF variable rate not to exceed 7% per annum. Principal
and interest are due on the date the City executes an approved final map of the property or
the date of a court ordered subdivide of the property. At June 30, 2014, the principal balance
outstanding is$250,249 and accrued interest of$181,425 for a total balance of$431,674.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
3) NOTES AND LOANS RECEIVABLE, (continued)
B) Moorpark 20, LP Promissory Note
On October 29, 2010,the Agency signed the Disposition and Development Agreement(DDA)
with the Area Housing Authority of the County of Ventura (AHA) and Moorpark 20, Limited
Partnership (M2OLP), consisting of AHA and Santa Barbara Housing Assistance Corporation.
The DDA provides for the construction of a 20-unit affordable housing project (Project) on
Agency-owned property located at 396, 406 and 496 Charles Street (Site). During the tax
credit application, the sale price of Site was determined to be $1,176,500 to show more local
funds into the Project. On the same date, the Agency executed a $1,176,500 loan agreement
with M2OLP to purchase the Site from the Agency. The loan will accrue interest at the rate of
2.5% per annum and have a term of 55 years. One annual payment will be made to the
Agency by M2OLP from residual receipts after the $600,000 has been paid off. This loan is
subordinate in right of payment to First Mortgage Note held by Bank of America, N.A. and is
secured by Deed of Trust and Security Agreement. The principal and accrued interest
outstanding on this note at June 30, 2014 are $1,176,500 and $108,427 respectively for a
total of$1,284,927.
On November 2, 2010 the Agency entered into a $600,000 loan agreement with M2OLP to
complete the construction of the Project. As of June 30, 2012, M2OLP has drawn down the
entire amount. The term of the loan is 30 years with a fixed interest rate of 2.5%. One
annual payment will be made to the Agency by M2OLP equal to 75% of available residual
receipts. This note is subordinate in right of payment to the First Mortgage Loan payable to
Bank of America, N.A. and is secured by Deed of Trust and Security Agreement. The
principal and accrued interest outstanding on this note at June 30, 2014 are $600,000 and
$55,000 respectively for a total of$655,000.
In the current fiscal year the City combined both notes for presentation purposes. The
combined amount of principal and accrued interest outstanding at June 30, 2014 is
$1,776,500 and $163,427 respectively, fora total of$1,939,927.
C) Rehabilitation Loans
The City operates a rehabilitation loan program for the renovation of low and moderate
income housing. The total balance outstanding at June 30, 2014, was$28,714.
D) First-Time Homeowner Assistance
The City provides down payment assistance loans to first-time homeowners under different
State and City programs. The total balance outstanding at June 30, 2014 was $22,644. In
order to reinforce the resale restrictions on properties purchased through the City's First Time
Home Buyer Program, buyers execute Promissory Notes and Deeds of Trust, which are
recorded to secure these Notes. The Notes become payable only in the event of a default of
any provision of this program.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
3) NOTES AND LOANS RECEIVABLE, (continued)
E) Cal Home Mobile-home Rehabilitation Loans
The total balance of Cal Home loans for repairs to mobile-homes in Villa del Arroyo at June
30, 2014 was $111,774. These loans are subject to a conditional forgiveness provision,
beginning in Year 6 of the loan, continuing through Year 10 of the loan, with 20% of the
balance forgiven each of these years; to date $117,958 has been received and$222,231 has
been forgiven. Funds received are deposited into a City Trust Fund to be used for eligible
home ownership-related activities.
F) Mountains Recreation and Conservation Authority(MRCA)
The City advanced $6,500 to MRCA to conduct an updated appraisal for approximately 3,805
acres in and adjacent to the Moorpark Area of Interest near Moorpark College for review by
the State of California Department of General Services. These funds were to be repaid
without interest to the City by June 30, 2014, or within sixty days of the State of California's
reauthorization of MRCA's Proposition 84 Project Planning and Design grant from the Santa
Monica Mountains Conservancy, whichever comes first. The total balance outstanding at
June 30, 2014 was $6,500. The City is exploring options for repayment; including provisions
of services by MRCA to manage the conservation of an 80-acres City-owned open space
property located outside the City limits along Tierra Rejada Road; or assistance with City
acquisition of additional Open space property.
4) INTERFUND TRANSACTIONS
Due to/Due from
Due to/due from other funds for the year ending June 30, 2014, consisted of the following:
Receivable Fund Payable fund Amount
Special Revenues-Los Angeles A.O.0 Non Major Funds a $ 177,006
Capital Projects-Special Projects Special Revenues-Parks and Public Facilities b 932,848
Non-Major Funds Capital Projects-Police Facilities Fee c 1,648,642
$ 2,758,496
a. In the Fiscal Year 2005/2006, the Los Angeles Area of Contribution (AOC) Fund advanced to
the Tierra Rejada Road/Spring Road Area of Contribution, $600,000 to construct the median
landscaping along Tierra Rejada Road. Repayment of the outstanding loan is contingent
upon collection of future development fees.
b. In the Fiscal Year 2009/2010, the Special Projects Fund advanced to the Parks/Public
Facilities Fund, $1,000,000 to construct a new Skate Park and expansion of the Poindexter
Park. The loan is subject to variable interest based on the average interest rate earned by
LAIF from the previous year. The principal and interest will be repaid as Park fees are
collected from new developments.
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95
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
4) INTERFUND TRANSACTIONS, (continued)
Due to/Due from, (continued)
c. In the Fiscal Year 2005/2006, the Endowment Fund advanced to the Public Facilities Fund,
$7,641,592 to construct the Police Services Center Building. Future development fees were
pledged to repay this loan. However in March 2006, it was determined that at built-out, there
will be an estimated $6.6 million shortfall in future revenues and City Council subsequently
approved the contribution of$5,434,834 from the Endowment Fund.
Transfers
Interfund transfers for the year ended June 30, 2014 consisted of the following:
Fund receiving transfers Fund making transfers Amount
Assessment Districts General Fund 1 $ 1,634,208
Community Development General Fund 1 419,372
Special Projects General Fund 2 412,098
Non Major Funds Streets&Traffic Safety 3 75,233
Parks/Public Facilities 3 102,021
Special Projects 3 1,763,551
Non Major 3 311,561
2,252,366
Total governmental funds $ 4,718,044
(1)=Transfers made to provide funding for operations
(2)=Transfers made to adjust fund balance to minimum requirement
(3)=Transfers made to provide funding for future equipment replacement
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
5) CAPITAL ASSETS AND DEPRECIATION
In accordance with GASB Statement No. 34, the City has reported all capital assets including
infrastructure in the Government-wide Statement of Net position. The City elected to use the
basic approach as defined by GASB Statement No. 34 for all infrastructures reporting, whereby
depreciation expense and accumulated depreciation have been recorded.
The following table presents the capital assets activity for the year ended June 30, 2014:
Beginning Ending
Balance Additions Deletions Balance
Governmental activities:
Capital assets,not being depreciated:
Land $ 39,380,903 $ - $ - $ 39,380,903
Land Rights-of-Way 123,066,830 - - 123,066,830
Infrastructure-Roadway System 1,214,737 4,924 (15,646) 1,204,015
Construction in progress 9,681,261 861,968 (13,267) 10,529,962
Total capital assets not being depreciated 173,343,731 866,892 (28,913) 174,181,710
Capital assets,being depreciated:
Buildings and improvements 38,765,370 - - 38,765,370
Machinery and equipment 6,428,178 250,160 (252,579) 6,425,759
Infrastructure
Roadway system 93,378,561 - - 93,378,561
Storm drain system 3,029,632 - (95,884) 2,933,748
Parks system 251,434 - - 251,434
Total capital assets being depreciated 141.853,175 -_ 250,160 (348,463) 141,754,872
Less accumulated depreciation/amortization for:
Buildings and improvements (9,958,129) (1,073,888) - (11,032,017)
Machinery and equipment (3,790,316) (387,293) 233,056 (3,944,553)
Infrastructure
Roadway system (38,805,283) (1,953,114) - (40.758,397)
Storm drain system (298,830) (25,982) - (324.812)
Parks system (72.784) (5,028) - (77,812)
Total accumulated depreciation (52,925,342) (3,445,305) 233,056 (56,137,591)
Total capital assets being depreciated net 88.927,833 (3,195,145) (115,407) 85,617,281
Governmental activities capital assets,net 5 262.271,564 $ (2,328.253) $ (144,320) $ 259.798,991
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
5) CAPITAL ASSETS AND DEPRECIATION, (continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $ 56,436
Public safety 239,206
Public services, including general infrastructure 2,478,082
Parks and recreation 671,581
Total depreciation expense-governmental activities $ 3,445,305
`Certain deletions in the capital assets activity schedule shown above could be the result of:
reclassifications of assets into a different class of asset, disposal of the assets, and/or transfer of
the assets to another government or governmental agency. If the asset transferred or disposed
of is not fully depreciated at the time of the transfer or disposal, these deletions in the asset
classes may not be accompanied by a like decrease in the accumulated depreciatidn for the
same asset class.
6) LONG-TERM LIABILITIES
Long-term liability activities for the year ended June 30, 2014, are as follows:
Beginning Ending Due within
Balance Increases Decreases Balance one year
Governmental activities:
Compensated absences E 614.611 $ 555.067 $ (517,849) $ 651,829 $ 40.096
Governmental activities
long-term liabilities $ 614,611 $ 555.067 $ (517.849) E 651,829 5 40.096
Employee Compensated Absences
The long-term liability at June 30, 2014 is $651,829 for employee compensated absences. The
General Fund is primarily expected to liquidate this liability.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
7) RETIREMENT PLAN
A) Plan Description
The City contributes to CaIPERS, a cost-sharing multiple-employer public employee defined
benefit pension plan. CaIPERS provides retirement and disability benefits, annual cost-of-
living adjustments, and death benefits to plan members and beneficiaries. CaIPERS acts as a
common investment and administrative agent for participating public entities within the State
of California. Benefit provisions and all other requirements are established by State statute
and city ordinance.
On September 12, 2012 the Governor signed Assembly Bill 340, Public Employee's Pension
Reform Act of 2014 (PEPRA), which significantly changed the retirement benefit of
employees hired on or after January 1, 2013. A two-tier retirement system has been adopted
by the City according to the provisions of the law.
Copies of CaIPERS' annual financial report may be obtained from their executive office: 400
P Street, Sacramento, California 95814.
B) Funding Policy
Active plan members are required to contribute 7 percent of their covered salary. The City
currently makes the contribution required of the City employees on their behalf. The City is
also required to make an additional contribution at an actuarially determined rate. The
required employer contribution rate for the fiscal year 2013/14 was 10.282 percent. The
10.282 percent is comprised of 8.052 percent for the City's normal cost and 2.230 percent for
the City's share of the pool's amortization bases or cumulative gain and losses experienced
by the pool since its June 30, 2003 inception. The contribution requirements for plan
members are established by State statute and the employer contribution rate is established
and may be amended by CaIPERS. The following represents the required contributions for
the past three fiscal years and the percentage contributed by the City:
Fiscal Year Required Percent Contributed
Contributions
2013-2014 $ 552,671 100.00%
2012-2013 536,748 100.00%
2011-2012 488,328 100.00%
New employees who qualify as new members per PEPRA will be enrolled in Tier 2; and will
be required to pay at least 50% of total normal cost rate. For the period January 1, 2014 thru
June 30, 2015, CaIPERS established the normal cost rate at 12.50%. As of June 30, 2014,
the City had one employee enrolled in the Tier 2.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
8) OTHER POST EMPLOYMENT BENEFITS
Plan Description
The City's defined benefit post-employment healthcare plan, City of Moorpark Retiree
Healthcare Plan, (MRHP), provides medical benefits to eligible retired City employees and
spouses. MRHP is part of the Public Agency portion of the California Employers' Retiree
Benefit Trust Fund (CERBT), an agent multiple-employer plan administered by CaIPERS,
which acts as a common investment and administrative agent for participating public
employers within the State of California. The MRHP has a funded status of 101.6% as of
June 30, 2014. A menu of benefit provisions as well as other requirements is established by
State statute within the Public Employees' Retirement Law. MRHP selects optional benefit
provisions from the benefit menu by contract with CaIPERS and adopts those benefits
through City resolution. CaIPERS issues a Comprehensive Annual Financial Report (CAFR).
The CAFR is issued in aggregate and includes the sum of all CaIPERS plans. Copies of the
CaIPERS CAFR may be obtained from the CaIPERS Executive Office, 400 P Street,
Sacramento, California 95814.
Funding Policy
The contribution requirements of plan members and the City are established and may be
amended by the Council. The City contributes the Public Employees' Medical and Hospital
Care Act (PEMHCA) minimum. The City is required to contribute the annual required
contribution of the employer(ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover the normal cost each year and amortize any unfunded
actuarial liabilities (or funding excess) over a period not to exceed thirty years. The current
ARC rate is 0.70 %of the annual covered payroll.
For 2014, the City's annual OPEB cost (expense) was $34,000 for MRHP. The City's annual
OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation (asset)for 2014 and the two preceding years were as follows:
THREE-YEAR TREND INFORMATION
Percentage of
Fiscal Annual OPEB OPEB Cost Net OPEB
Year Cost(AOC) Contributed Obligation (Asset)
6/30/2014 $ 34,000 100% $ (134,000)
6/30/2013 455,000 100% -
6/30/2012 44,215 92% (416,000)
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
8) OTHER POST EMPLOYMENT BENEFITS, (continued)
Annual OPEB Cost and Net OPEB Obligation Calculation:
The OPEB Cost and Net OPEB Obligation (Asset)for the fiscal year 2014 was as follows:
June 30, 2014
Annual required contribution $ 34,000
Add: Interest on net OPEB obligation -
Amortization of NOO -
Annual OPEB cost(expense) 34,000
Contributions made (168,000)
Increase in net OPEB obligation (134,000)
Net OPEB obligation (asset)-beginning of year
Net OPEB obligation (asset)- end of year $ (134,000)
Funded Status and Funding Progress
The funded status of the plan as of June 30, 2013, the most recent actuarial valuation
applicable to 2014, was as follows:
Actuarial Accrued Liability(AAL) $ 863,000
Actuarial Value of Plan Assets $ 877,000
Unfunded Actuarial Accrued Liability(Asset) (UAAL) $ (14,000)
Funded Ratio(Actuarial Value of Plan Assets/AAL) 101.6%
Covered Payroll (Active Plan Members) $ 4,890,000
UAAL as a Percentage of Covered Payroll -0.3%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are compared
with past expectations and new estimates are made about the future. The schedule of
funding progress, presented as required supplementary information following the notes to the
financial statements, presents multiyear trend information that shows whether the actuarial
value of the plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
8) OTHER POST EMPLOYMENT BENEFITS, (continued)
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as Understood by the employer and plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce short-term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of the calculations
The following is a summary of the actuarial assumptions and methods:
Valuation Date June 30, 2013
Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Level Percent of Payroll
Remaining Amortization Period 15 years fixed (closed) period for plan
changes
Actuarial Assumptions:
Investment Rate of Return 7.25% Pre-funded
Aggregate Increases—3.25%
Projected Salary Increase Merit Increases—CaIPERS
1997-2007 Experience Study 4.5%
Health Care Trend Rate 4.50%
General Inflation 3.00%
9) CONDUIT DEBT- REVENUE BONDS
The City of Moorpark Mobile Home Park Revenue Bonds (Villa Del Arroyo) Series 2000 A and
the City of Moorpark Mobile Home Park Subordinate Revenue Bonds (Villa Del Arroyo) Series
2000 B were issued in the 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 nonprofit 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. On May 31, 2012 these taxable subordinate bonds were refunded for
$13,085,000 and $375,000, respectively. The total bonds outstanding at June 30, 2014, totaled
$12,775,000.
The City of Moorpark Multifamily Housing Revenue Bonds (Vintage Crest Senior Apartment
Project) 2002 Series A were issued in the amount of $16,000,000. The issuance was dated
December 1, 2002. The Series A Bonds were issued to fund a loan to Vintage Crest Senior
Apartment L.P., a California Limited Partnership, to finance the Vintage Crest Senior Housing
Project. The bonds outstanding at June 30, 2014, totaled$13,580,906.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
9) CONDUIT DEBT- REVENUE BONDS, (continued)
Each of the bond programs described above do not constitute an indebtedness of the City, and
there is neither a 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 therefore. The programs are
completely administered by the Trustees without any involvement by the City. Accordingly, these
programs and the bonds issued there under have been excluded from the accompanying basic
financial statements.
10) SPECIAL ASSESSMENT BONDS
A) Assessment District 92-1 (Mission Bell Plaza)
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 2014 and 2023, respectively, were
issued under the 1915 Improvements Bonds 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 basic financial statements. The unpaid principal balance on such bonds is
$995,000 at June 30, 2014.
B) Community Facilities District No. 97-1 (Carlsberg)
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, 2027 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. On February 1, 2012 the City issued Community Facilities District No. 97-1
(Carlsberg) Special Tax Refunding Bonds-Series 2012 for $5,720,000 to refund the original
1997 bond issue. The Special Tax Refunding Bonds-Series 2012 bonds mature on
September 1, 2027 with interest payable at rates ranging from 2.0 percent to 4.5 percent per
annum on March 1, and September 1, of each year commencing September 1, 2012. 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
basic financial statements. The unpaid principal balance of the Special Tax Refunding Bonds-
Series 2012 is $5,235,000 at June 30, 2014.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
10) SPECIAL ASSESSMENT BONDS, (continued)
C) Community Facilities District No. 2004-1 (Moorpark Highlands)
During fiscal year 2006/07, the City issued bonds to construct and acquire certain public
facilities of benefit to the Community Facilities District No. 2004-1. The bonds, totaling
$38,030,000, were issued pursuant to the Mello-Roos Community Facilities Act of 1982. The
bonds mature on September 1, 2038 with interest payable at rates ranging from 4.0 percent
to 5.3 percent per annum, on March 1 and September 1 of each year. 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 basic
financial statements. In February 2014 these bonds were refinanced and refunded with the
issuance of a refunding Series A-2014 and Junior Series B-2014. The unpaid principal
balance of the newly refinanced debt is $19,625,000 at June 30, 2014.
11) RISK MANAGEMENT
A) Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City is a member of the Authority. The Authority is composed of over 100 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 coverage. The
Authority's pool began covering claims of its members in 1978. Each member government
has an elected official as its representative on the Board of Directors. The Board operates
through a nine-member Executive Committee.
The City does not have an equity interest in the Authority: therefore, no amount has been
reported in the Statement of Net Position. However, the City does have an ongoing financial
interest because the City is able to influence the operations of the Authority so that the
Authority uses its resources on behalf of the City. Also, an ongoing financial responsibility
exists because the Authority is dependent on continued funding from the City. The
condensed financial information of the Authority has not been reproduced in this report, but is
available from the Authority.
B) Self Insurance Programs of the Authority
Beginning coverage period 2010/11, the Authority implemented a new funding and cost
allocation formula, from retrospective funding model to a prospective funding model and
increased the funding estimate goal to 75 percent confidence level. This change aims to
improve the Authority's long-term financial viability by sufficiently pre-funding each period to
cover expected claims and expenditures. Under the new formula, the General Liability and
Workers' Compensation annual contributions are separately calculated for public safety and
non-public safety categories based on the member's exposure and experience factors.
Exposure factor is determined by the annual reported payroll, with the minimum imputed
payroll of $420,000 for the liability formula. Experience factors are defined by loss layer
weighting ratio equivalent to 50 percent on the agency's first layer losses ($0 to $30,000 for
liability and $0 to $50,000 for worker's compensation) and 50 percent on its second layer of
losses ($30,000 to$750,000 for liability and $50,000 to $100,000 for workers' compensation).
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
11) RISK MANAGEMENT, (continued)
B) Self Insurance Programs of the Authority, (continued)
A credibility weighting component, ranging from 80 percent to 20 percent, is applied to
determine the portion of the member's cost attributable to its own loss experience relative to
its payroll size. The annual contribution is subject to 0 percent-35 percent volatility band, so
that no member will pay more than 35 percent or pay less than prior year amount.
General Liability: Costs of 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: Members retain the first $50,000 of each claim. Losses up to
$2,000,000 are pooled by members and excess coverage is purchased by statutory limits.
Administrative expenses are paid from the Authority's investment earnings.
C) Purchased Insurance
The City participates in the all-risk property protection program of the Authority. This
insurance protection is underwritten by several insurance companies. The City property is
currently insured according to a schedule of covered property submitted by the City to the
Authority. Total all-risk property insurance coverage is $54,924,233. There is a $5,000 per
loss deductible. Premiums for the coverage are paid annually and are not subject to
retroactive adjustments.
D) Earthquake and Flood Insurance
The City purchased earthquake and flood insurance on a portion of its property. The
earthquake and flood insurance is part of the property protection insurance program of the
Authority. The City property currently has earthquake and flood protection in the amount of
$49,760,940. There is a deductible of 5 percent of the value with a minimum deduction of
$100,000. Premiums for the coverage are paid annually and are not subject to retroactive
adjustments.
E) Adequacy of Protection
During the past three fiscal (claims) years, none of the above programs of protection have
had settlements or judgments that exceeded pooled or insured coverage. There have been
no significant reductions in pooled or insured liability coverage from coverage in the prior
year.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
11) RISK MANAGEMENT, (continued)
F) Claims and Judgments
The City accounts for uninsured, material claims and judgments and associated legal and
administrative costs when it is probable that the liability claim has been incurred and the
amount of the loss can be reasonably estimated. Included therein are claims incurred but not
reported, which consists of (a) known loss events expected to be presented as claims later,
(b) unknown loss events that are expected to become claims, and (c) expected future
development on claims already reported. This is based upon historical actual results that
have established a reliable pattern supplemented by specific information about current
matters. Small dollar claims and judgments are recorded as expenditures when paid.
12) CLASSIFICATION OF NET POSITION AND FUND BALANCE
A) Net position
In the Government-wide financial statements, net position is classified in the following
categories:
Net Investment in Capital Assets - This category groups all assets, including infrastructure,
into one component of net position. Accumulated depreciation on these assets reduces this
category.
Restricted Net Position - This category presents external restrictions imposed by creditors,
grantors, contributors, or laws and regulations of other governments and restrictions imposed
by law through constitutional provisions or enabling legislation.
Unrestricted Net Position - This category represents the net position of the City that is not
externally restricted for any project or other purpose.
B) Fund Balance
The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental
Fund Type Definitions as of June 30, 2011. Fund balances in governmental funds are
reported in classifications that comprise a hierarchy based primarily on the extent to which
the City is bound to honor constraints on the specific purposes for which amounts in those
funds can be spent. The City considers restricted fund balance to have been spent first when
an expenditure is incurred for purposes for which both restricted and unrestricted fund
balance is available. Similarly, when an expenditure is incurred for purposes for which
amounts in any of the unrestricted classifications of fund balance could be used, the City
considers committed amounts to be reduced first, followed by assigned amounts and then
unassigned amounts. A City Council Ordinance or Resolution is the formal action that would
effectively commit fund balances for a particular purpose.
The following classifications describe the relative strength of the spending constraints placed
on the purposes for which resources can be used:
Nonspendable Fund Balance - Amounts that cannot be spent either because they are in
nonspendable form or are required to be maintained intact.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
12) CLASSIFICATION OF NET POSITION AND FUND BALANCE, (continued)
B) Fund Balance, (continued)
Restricted Fund Balance - Amounts that are constrained to specific purposes by state or
federal laws, or externally imposed conditions by grantors or creditors.
Committed Fund Balance - Amounts that may be specified by the City Council by resolution
to formally commit part of the City's fund balances or future revenues for a specific
purpose(s) or program. To change or repeal any such commitment will require an additional
formal City Council's action utilizing the same type of action that was originally used.
Assigned Fund Balance - Amounts that are constrained by the Council's intent to use
specified financial resources for specific purposes, but are neither restricted nor committed. It
is the policy of the City Council that assignment of fund balances must be approved by the
Council prior to the fiscal year end.
Unassigned Fund Balance- These are either residual positive net resources of fund balance
in excess of what can properly be classified in one of the other four categories, or negative
balances.
The City's governmental fund balances at June 30, 2014, are presented below:
Street and Assessment Parks/Public
General Traffic Safety Districts Facilities
Nonspendable:
Prepaid items $ 24,815 $ 10,156 $ - $ -
Due from other funds and governments - - - -
Property held for resale 611,084 - - -
Restricted for:
Public services - 19,716,138 5,163,806 -
Recreation services - - - 2,215,479
Public safety - - - -
Low and moderate income housing - - - -
Committed to:
Library services - - - -
Assigned to:
Community/Engineering/Public Works - - - -
Capital projects - - -Unassigned 3,000,000 - - -
Total fund balances(deficit) $ 3,635,899 $ 19,726,294 $ 5,163,806 $ 2,215,479
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
12) CLASSIFICATION OF NET POSITION AND FUND BALANCE, (continued)
B) Fund Balance, (continued)
Los Angeles Low-Mod Prop 113
Area of Income Local Streets Community
Contribution Housing Asset and Roads Development
Nonspendable:
Prepaid items $ - $ - $ - $ -
Due from other funds and governments 177,006 - - -
Property held for resale - 7,429,564 - -
Restricted for:
Public services 11,587,986 - 9,692 -
Recreation services - - - -
Public safety - - - -
Low and moderate income housing - 222,280 - -
Committed to:
Library services - - - -
Assigned to:
Community/Engineering/Public Works - - - 17
Capital projects - - - -
Unassigned - - - -
Total fund balances(deficit) $ 11,764,992 $ 7,651,844 $ 9,692 $ 17
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
12) CLASSIFICATION OF NET POSITION AND FUND BALANCE, (continued)
B) Fund Balance, (continued)
Nonmajor Total
Police Special Governmental Governmental
Facilities Fee Projects Funds Funds
Nonspendable:
Prepaid items $ - $ - $ - $ 34,971
Due from other funds and governments - 932,848 1,648,642 2,758,496
Property held for resale - - 55,573 8,096,221
Restricted for:
Public services - - 3327,188 39,804,810
Recreation services - - 2,617,275 4,832,754
Public safety - - 379,230 379,230
Low and moderate income housing - - 4,150,311 4,372,591
Committed to:
Library services - - 698,395 698,395
Assigned to:
Community/Engineering/Public Works - - - 17
Capital projects - 24,549,778 11,640,782 36,190,560
Unassigned (1,648,181) - (177,006) 1,174,813
Total fund balances(deficit) $ (1,648,181) $ 25,482,626 $ 24,340,390 $ 98,342,858
Deficit Fund Balances
The following major governmental fund has a deficit at June 30, 2014:
Police Facilities Fees Capital Projects Fund-$(1,648,181)
The following non-major governmental fund has a deficit at June 30, 2014:
Tierra Rejada/Spring Road A.O.C. Special Revenue Fund-$ (177,006)
Management expects these deficits to be eliminated through future revenues.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
13) COMMITMENTS AND CONTINGENCIES
A) Commitments
The City has contracts with 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. These are based
on an hourly rate and adjusted throughout the fiscal year.
The estimated amount of construction contract obligations at year-end is $4,480,500. This
amount represents all outstanding encumbrances relating to capital projects.
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 agencies. Although such audits could generate expenditure
disallowance under the terms of the grants, it is believed that any disallowed amounts will not
be material.
C) Successor Agency
Deductions (expenses) incurred by the Successor Agency of the former Redevelopment
Agency of the City of Moorpark for the year ended June 30, 2014 (and subsequent years in
which the Successor Agency is in operation) are subject to review by various State agencies
and the County in which the Successor Agency resides. If any expenses incurred by the
Successor Agency are disallowed by the State agencies or County, the City, acting as the
Successor Agency could be liable for the repayment of the disallowed costs from either its
own funds or by the State withholding remittances normally paid to the City. The amount, if
any, of expenses that may be disallowed by the State agencies or County cannot be
determined at this time, although the Successor Agency expects such amounts, if any, to be
immaterial. Furthermore, as of June 30, 2014, the Successor Agency of the Redevelopment
Agency of the City of Moorpark has completed and submitted its Long Range Property
Management Plan and is waiting for approval from the State of California Department of
Finance.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK(SARA)
On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26, ("the bill")that
provides for the dissolution of all redevelopment agencies in the State of California. Most of
California cities had established a redevelopment agency that was included in the reporting entity
of the city as a blended component unit (since the city council, in many cases, also served as the
governing board for those agencies). The Bill provided that upon dissolution of a redevelopment
agency, either the city or another unit of local government will agree to serve as the "Successor
Agency"to administer assets, pay and adhere to the provisions of enforceable obligations, and to
expeditiously settle the affairs of the dissolved redevelopment agency. If the city declines to
accept the role of Successor Agency, other local agencies may elect to perform this role. If no
local agency accepts the role of Successor Agency, the Governor is empowered by the Bill to
establish a local "designated local authority" to perform this role. On January 4, 2012, the City
Council met and created the Successor Agency of the former Redevelopment Agency of the City
of Moorpark in accordance with the Bill as part of the City of Moorpark Resolution Number 2012-
3079.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the
State of California cannot enter into new projects, obligations or commitments. Subject to the
control of a newly established oversight board, remaining assets could only be used to pay
enforceable obligations in existence at the date of dissolution (including the completion of any
unfinished projects that were subject to legally enforceable, contractual commitments). In future
fiscal years, successor agencies will only be allocated tax increment revenue in the amount that
is necessary to pay the estimated annual installment payments on enforceable obligations of the
former redevelopment agency until all enforceable obligations of the prior redevelopment agency
have been paid in full.
The Bill directs the State Controller of the State of California to review the propriety of any
transfers of assets between redevelopment agencies and other private and public bodies that
occurred after January 1, 2011. If the body that received such transfers is not contractually
committed to a third party for the expenditure or encumbrance of those assets, the State
Controller is required to order the available assets to be transferred to the public body designated
as the successor agency by the Bill. In accordance with the timeline set forth in the Bill (as
modified by the California Supreme Court on December 29, 2011), all redevelopment agencies in
the State of California were dissolved and ceased to operate as a legal entity on February 1,
2012. After the date of dissolution, January 31, 2012, the assets, liabilities, and activities of the
dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in
the financial statements of the City of Moorpark. The private-purpose trust fund keeps its activities
under the accrual method of accounting.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK(SARA), (continued)
In accordance with AB 1484 and in compliance with the California Health & Safety Code, the City
of Moorpark elected to be Housing Successor to the housing activities and functions of the former
Redevelopment Agency of the City of Moorpark. Accordingly, all housing assets, as defined by
the Health and Safety Code Section 34176 (e), were transferred to the City of Moorpark in a
specially created new fund shown, as a major fund in 2014, named "Low-Mod Housing Asset"
fund in the governmental funds financial statements.
LONG TERM DEBT
The following is a schedule of changes in long-term liabilities for the year ended June 30, 2014:
•
Beginning Ending Due within
Balance Incn3aSes Decreases Balance one year
Bonds payable:
1999 Tax allocation bonds $ 3,920,000 $ - $ (580,000) $ 8340.000 $ 605.000
2001 Tax allocation bonds 11470000 - (15000) 11 455000 20.000
2006 Tax allocation bonds 11.580.000 - (40,000) 11.540.000 40.000
Subtotal bonds payable 26,970000 - (635.000) 26.335.000 665.000
PIusl(less)deterred amoums.
For issuance discount (254.896) - 10.847 (244049) -
Successor agency
long-term liadeties $ 26,715,104 $ - $ (624153) $ 26,090,951 $ 665,000
Combined annual debt service requirements to maturity for all bonds are as follows:
Year Ending Principal Interest Total
2015 $ 665,000 $ 1,250,544 $ 1,915,544
2016 700,000 1,218,670 1,918,670
2017 730,000 1,185,113 1,915,113
2018 765,000 1,149,796 1,914,796
2019 805,000 1,113,168 1,918,168
2020-2024 3,810,000 5,011,660 8,821,660
2025-2029 4,865,000 3,949,214 8,814,214
2030-2034 6,225,000 2,596,330 8,821,330
2035-2039 7,770,000 709,003 8,479,003
Total $26,335,000 $ 18,183,498 $ 44,518,498
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112
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK(SARA), (continued)
•
LONG TERM DEBT(continued)
A) 1999 Tax Allocation Bonds
In 1999, the former Redevelopment Agency issued $9,860,000 aggregated principal amount
of Moorpark Redevelopment Project 1999 Tax Allocation Refunding Bonds (1999 Bonds).
The purpose of the 1999 Bonds was to advance refund the Agency's previously issued
$10,000,000 Moorpark Redevelopment Project, 1993 Tax Allocation Bonds (1993 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, commencing 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.
The 1999 Bonds were secured by all property tax increment revenue, which was deposited in
the former Redevelopment Agency 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 outstanding balance of the bonds was transferred to the Successor Agency on February
1, 2012 as part of the Moorpark Redevelopment Agency dissolution in accordance with ABX1
26 and AB 1484. The Successor Agency is in compliance with the covenants contained in
debt indenture, which require the establishment of certain specific accounts for the 1999
Bonds.
B) 2001 Tax Allocation Bonds
In December 2001, the former Redevelopment Agency issued $11,625,000 of Tax Allocation
Parity Bonds (2001 Bonds). The proceeds of the 2001 Bonds were used to fund
redevelopment activities within the Moorpark Redevelopment Project area. Interest on the
2001 Bonds is payable semi-annually on April 1 and October 1, commencing April 1, 2002, at
rates ranging from 2.85 percent to 5.13 percent per annum. The 2001 Bonds maturing
October 2031 are subject to mandatory sinking funds redemption in the amount of the
principal and accrued interest. The 2001 Bonds are payable from and secured by the tax
revenues to be derived from the project area.
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113
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK(SARA), (continued)
LONG TERM DEBT, (continued)
B) 2001 Tax Allocation Bonds, (continued)
The 2001 Bonds were secured by all property tax increment revenue, which were deposited
in the former Redevelopment Agency 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 2001 Bonds. In addition, the bond resolutions require retention of funds held
by the fiscal agent prior to use for other than debt service.
The outstanding balance of the bonds was transferred to the Successor Agency on February
1, 2012 as part of the Moorpark Redevelopment Agency dissolution in accordance with AB x1
26 and AB 1484. The Successor Agency is in compliance with the covenants contained in
debt indentures, which require the establishment of certain specific accounts for the 2001
Bonds.
C) 2006 Tax Allocation Bonds
In 2006, the former Redevelopment Agency issued an $11,695,000 aggregated principal
amount of Moorpark Redevelopment Project 2006 Tax Allocation Bonds (2006 Bonds). The
purpose of the 2006 Bonds was to finance redevelopment activities related to the Moorpark
Redevelopment Project Area.
The 2006 Bonds bear interest at rates ranging from 3.625 percent to 4.375 percent per
annum, payable semi-annually on April 1 and October 1 of each year, commencing on April
1, 2007, and are subject to mandatory sinking fund redemption commencing on October 1,
2016, and on each October 1 thereafter. The 2006 Bonds are payable from and secured by
the tax revenues to be derived from the project area.
The 2006 Bonds are secured by all property tax increment revenue, which was recorded in
the former Redevelopment Agency 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 2006 Bonds.
The outstanding balance of the bonds was transferred to the Successor Agency on February
1, 2012 as part of the Moorpark Redevelopment Agency dissolution in accordance with AB x1
26 and AB 1484. The Successor Agency is in compliance with the covenants contained in the
debt indenture, which require the establishment of certain specific accounts for the 2006
Bonds.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2014
15) RESTATEMENT OF NET POSITION
a. Change in accounting principle
As discussed in Note 1, the City implemented GASB Statement No. 65 effective July 1, 2013.
GASB 65, among other provisions, amended prior guidance with respect to the treatment of debt
issuance costs. Under GASB 65, debt issuance costs, except any portion related to prepaid
insurance costs, are recognized as an expense in the period incurred rather than reported as an
asset On the statement of net position and recognized as an expense in a systematic and rational
manner over the duration of the related debt. The Private Purpose Trust Fund's unamortized
balance of debt issuance costs, at the beginning of the year was $178,123. GASB 65 requires
that accounting changes adopted to conform to the provisions of the Statement be applied
retroactively by restating financial statements. Accordingly, beginning net position on the
Statement of Changes in Fiduciary Net Position — Private Purpose Trust Fund has been restated
for any unamortized debt issuance costs previously reported on the statement of net position.
b. Correction of an error
The beginning net position balance shown in the Private Purpose Trust Fund was restated as a
result of the correction of an error in a balance of certain pass-thru liability improperly accrued
and accounted for in the fund. The amount of the liability at the beginning of the year was
$842,242. Accordingly, beginning net position on the Statement of Changes in Fiduciary Net
Position — Private Purpose Trust Fund has been restated for that amount related to on the
statement of net position.
As a result of the above mentioned items, the beginning net position of the Private Purpose Trust
Fund—Statement of Changes in Fiduciary Net Position was restated as follows:
Fiduciary Funds-Private Purpose Trust Fund
Statement of Changes in Fiduciary Net Position
Net position,beginning of the year,prior to restatement $ 474,900
Bonds Cost of Issuance adjustment-GASB 65 (178,123)
Payables adjustment-Release of liabililty 842,242
Net position,beginning of the year,as restated $ 1,139,019
16) SUBSEQUENT EVENT
During November 2014, the Successor Agency issued 2014 Tax Allocation Refunding Bonds to
refund the entire 1999 Bonds and 2001 Bonds outstanding. The refunding resulted in an annual
savings to the debt service expense of approximately$190,000.
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115
REQUIRED SUPPLEMENTARY INFORMATION
116
Required Supplementary Information
City of Moorpark
Budgetary Comparison Schedule-General Fund
Year Ended June 30, 2014
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Property Taxes
Current Secured $ 3,100,000 $ 3,000,000 $ 3,016,191 $ 16,191
Current Unsecured 115,000 115,000 101,825 (13,175)
Prior year Secured-Unsecured 10,000 10,000 5,159 (4,841)
Supplemental Secured-Unsecured 35,000 35,000 49,589 14,589
Real Property Transfer Tax 140,000 140,000 219,852 79,852
Homeowners Property Exemption 40,000 40,000 35,574 (4,426)
Parcel Tax 210,000 210,000 212,641 2,641
Property Taxes-VLF 2,850,000 2,940,000 2,941,864 1,864
Other Property Taxes 125,000 125,000 259,070 134,070
Total Property Taxes 6,625,000 _ 6,615,000 6,841,765 226,765
Sales Taxes
Sales and use tax 2,800,000 2,725,000 2,695,884 (29,116)
Sales tax compensation 875,000 1,090,000 1,089,362 (638)
Total Sales Taxes 3,675,000 3,815,000 3,785,246 (29,754)
Franchise Fees
Cable TV 425,000 425,000 401$84 (23,616)
Edison 300,000 300,000 297,329 (2,671)
Gas 100,000 100,000 90,869 (9,131)
Oil - - 4,131 4,131
PEG Fees 50,000 50,000 48,681 (1,319)
VM 155,000 - - -
GI Rubbish 200,000 200,000 196,707 (3,293)
Moorpark Rubbish 120,000 120,000 124,245 4,245
Landfill local impact fee 60,000 60,000 50,779 (9,221)
CIWMP Fees 10,000 10,000 8,634 (1,366)
Total Franchise Fees 1,420,000 1,265,000 1,222,759 (42,241)
Licenses and Permits
Business Registration 125,000 125,000 111,871 (13,129)
Filming Permits 7,000 7,000 6,900 1,900
NPDES Business Inspection Fees 8,100 8,100 8,580 480
Total Licenses and Permits 140,100 140,100 129,351 (10,749)
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117
Required Supplementary Information
City of Moorpark
Budgetary Comparison Schedule-General Fund
Year Ended June 30, 2014
Continued
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Fines and Forfeitures
Municipal Codes Fines 250,000 250,000 219,495 (30,505)
Animal Control Fines 1,000 1,000 45 (955)
Forfeitures and Penalties 1,000 1,000 1,955 955
Total Fines and Forfeitures 252,000 252,000 221,495 (30,505)
Use of Money and Property
Investment Earnings 300,000 300,000 338,740 38,740
Rents and Concessions 125,000 125,000 119,995 (5,005)
Rents Tenants 115,000 115,000 142,604 27,604
Other earnings and rents - - 9,126 9,126
Total Use of Money and Property 540,000 540,000 610,465 70,465
Charges for Services
Other Administrative Services 100,000 100,000 54,090 (45,910)
Administrative Fees 250,000 250,000 250,000 -
Administrative Fees-CFD - - 163,000 163,000
Park and Facility Use Fee 100,000 100,000 129,371 29,371
Contract Class Registration Fees 248,000 248,000 218,610 (29,390)
League Fees 122,800 122,800 100,978 (21,822)
Recreation Events Fees 299,500 299,500 249,737 (49,763)
Other Recreation Fees 5,000 5,000 7,537 2,537
Advertising in Brochure 8,000 8,000 13,958 5,958
Other Community Services Fees 140,500 3,500 2,121 (1,379)
Photocopying 1,000 1,000 514 (486)
Sale of Documents 1,000 1,000 952 (48)
Special Police Department Services 30,000 30,000 33,640 3,640
NSF Fees and Charges 1,000 1,000 505 (495)
Planning Time Charges 10,000 10,000 22,732 12,732
Total Charges for Services 1,316,800 1,179,800 1,247,745 67,945
Intergovernmental
Motor Vehicle in Lieu - - 15,942 15,942
Other State Funds 20,000 20,000 20,919 919
County Grants 20,000 35,000 29,915 (5,085)
Other Federal Revenue Grants 15,000 _ 15,000 2,260 (12,740)
Total Intergovernmental 55,000 70,000 69,036 (964)
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118
Required Supplementary Information
City of Moorpark
Budgetary Comparison Schedule-General Fund
Year Ended June 30, 2014
Continued
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Other Revenues
Contributions-Donations 10,000 10,000 2,572 (7,428)
Revenues not classified elsewhere 5,000 5,000 16,667 11,667
Expense Reimursements 80,000 95,000 205,967 110,967
Restitutions-Insurance Proceeds 20,000 20,000 56,598 36,598
Cash overage/shortage - - 30 30
Total Other Revenues 115,000 130,000 281,834 151,834
Total revenues 14,138,900 14,006,900 14,409,696 402,796
EXPENDITURES
General government 1,329,281 1,897,120 1,725,569 171,551
Public safety 6,438,293 6,553,293 6,303,971 249,322
Public services 2,279,011 2,338,189 1,935,529 402,660
Parks and recreation 1,717,262 1,853,480 1,589,008 264,472
Capital Outlay 638,622 1,160,863 389,219 771,644
Total expenditures 12,402,469 13,802,945 11,943,296 1,859,649
Excess of revenues
over expenditures 1,736,431 203,955 2,466,400 2,262,445
OTHER FINANCING SOURCES(USES)
Transfers out (2,574,461) (2,824,496) (2,465,677) 358,819
Total other financing sources(uses) (2,574,461) (2,824,496) (2,465,677) 358,819
Net change in fund balance (838,030) (2,620,541) 723 2,621,264
Fund balance, beginning of year 3,635,176 3,635,176 3,635,176 -
Fund balance, end of year $ 2,797,146 $ 1,014,635 $ 3,635,899 $ 2,621,264
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119
Required Supplementary Information
City of Moorpark
Budgetary Comparison Schedule-Street and Traffic Safety -Special Revenue Fund
Year Ended June 30, 2014
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property
Investment Earnings $ 254,000 $ 254,000 $ 255,170 $ 1,170
Rents Tenants 19,800 19,800 19,801 1
Total Use of Money and Property 273,800 273,800 274,971 1,171
Charges for Services
Other Development Fees 624,000 624,000 2,243,108 1,619,108
Total Charges for Services 624,000 624,000 2,243,108 1,619,108
Total revenues 897,800 897,800 2,518,079 1,620,279
EXPENDITURES
Public services 388,663 437,873 350,437 87,436
Capital Outlay 2,336,003 3,360,221 358,254 3,001,967
Total expenditures 2,724,666 3,798,094 708,691 3,089,403
Excess(deficiency)of revenues
over(under)expenditures (1,826,866) (2,900,294) 1,809,388 4,709,682
OTHER FINANCING SOURCES(USES)
Transfers Out - (75,550) (75,233) 317
Total other financing sources(uses) - (75,550) (75,233) 317
Net change in fund balance (1,826,866) (2,975,844) 1,734,155 4,709,999
Fund balance, beginning of year 17,992,139 17,992,139 17,992,139 -
Fund balance,end of year $ 16,165,273 $ 15,016,295 $ 19,726,294 $ 4,709,999
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120
Required Supplementary Information
City of Moorpark
Budgetary Comparison Schedule-Assessment Districts -Special Revenue Fund
Year Ended June 30, 2014
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property $ - $ - $ 77,785 $ 77,785
Charges for Services 7,600 7,600 7,592 (8)
Maintenance Assessments 1,964,200 1,964,200 1,958,856 (5,344)
Other Revenues 10,000 10,000 4,374 (5,626)
Total revenues 1,981,800 1,981,800 2,048,607 66,807
EXPENDITURES
Public Services 406,865 406,865 375,637 31,228
Parks and Recreation 4,223,277 4,329,179 3,735,502 593,677
Capital Outlay 19,000 19,000 5,823 13,177
Total expenditures 4,649,142 4,755,044 4,116,962 638,082
Excess(deficiency)of revenues
over(under)expenditures (2,667,342) (2,773,244) (2,068,355) 704,889
OTHER FINANCING SOURCES(USES)
Transfers in 1,803,299 1,803,299 1,634,208 (169,091)
Total other financing sources(uses) 1,803,299 1,803,299 1,634,208 (169,091)
Net change in fund balance (864,043) (969,945) (434,147) 535,798
Fund balance, beginning of year 5,597,953 5,597,953 5,597,953 -
Fund balance, end of year $ 4,733,910 $ 4,628,008 $ 5,163,806 $ 535,798
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121
Required Supplementary Information
City of Moorpark
Budgetary Comparison Schedule-Parks and Public Facilities-Special Revenue Fund
Year Ended June 30, 2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property $ 18,000 $ 18,000 $ 46,523 $ 28,523
Charges for Services 265,000 265,000 1,168,224 903,224
Total revenues 283,000 283,000 1,214,747 931,747
EXPENDITURES
Parks and Recreation 63,200 78,200 16,650 61,550
Capital Outlay 388,800 388,800 24,283 364,517
Total expenditures 452,000 467,000 40,933 426,067
Excess(deficiency)of revenues
over(under)expenditures (169,000) (184,000) 1,173,814 1,357,814
OTHER FINANCING SOURCES(USES)
Transfers out _ - (102,021) (102,021) -
Total other financing sources(uses) - (102,021) (102,021) -
Net change in fund balance (169,000) (286,021) 1,071,793 1,357,814
Fund balance, beginning of year 1,143,686 1,143,686 1,143,686 -
Fund balance, end of year $ 974,686 $ 857,665 $ 2,215,479 $ 1,357,814
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122
Required Supplementary Information
City of Moorpark
Budgetary Comparison Schedule -Los Angeles AOC -Special Revenue Fund
Year Ended June 30, 2014
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property
Investment Earnings $ 150,000 $ 150,000 $ 150,907 $ 907
Total Use of Money and Property 150,000 150,000 150,907 907
Charges for Services
Area of Contribution Fee 312,000 312,000 913,758 601,758
Total Charges for Services 312,000 312,000 913,758 601,758
Total revenues 462,000 462,000 1,064,665 602,665
EXPENDITURES
Public services 27,091 52,640 39,728 12,912
Capital Outlay 5,705,176 6,125,259 236,655 5,888,604
Total expenditures 5,732,267 6,177,899 276,383 5,901,516
Net change in fund balance (5,270,267) (5,715,899) 788,282 6,504,181
Fund balance, beginning of year 10,976,710 10,976,710 10,976,710 -
Fund balance,end of year $ 5,706,443 $ 5,260,811 $ 11,764,992 $ 6,504,181
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123
Required Supplementary Information
City of Moorpark
Budgetary Comparison Schedule-Low-Mod Income Housing Asset Fund -Special Revenue Fund
Year Ended June 30, 2014
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Properly $ - $ - $ 3,123 $ 3,123
Charges for Services - - 4,950 4,950
Total revenues - - 8,073 8,073
EXPENDITURES
General Government 30,000 30,000 459 29,541
Total expenditures 30,000 30,000 459 29541
Net change in fund balance (30,000) (30,000) 7,614 37,614
Fund balance, beginning of year 7,644,230 7,644,230 7,644,230 -
Fund balance,end of year $ 7,614,230 $ 7,614,230 $ 7,651,844 $ 37,614
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124
Required Supplementary Information
City of Moorpark
Budgetary Comparison Schedule-Prop 1B Local Streets and Roads-Special Revenue Fund
Year Ended June 30,2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ - $ - $ 9,692 $ 9,692
Intergovernmental - 1,091,000 - (1,091,000)
Total revenues - 1,091,000 9,692 (1,081,308)
EXPENDITURES
Capital outlay 539,061 537,267 - 537,267
Total expenditures 539,061 537,267 - 537,267
Net change in fund balance (539,061) 553,733 9,692 (544,041)
Fund balance,beginning of year - - - -
Fund balance,end of year $ (539,061) $ 553,733 $ 9,692 $ (544,041)
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125
Required Supplementary Information
City of Moorpark
Budgetary Comparison Schedule-Community Development-Special Revenue Fund
Year Ended June 30, 2014
Budget Amounts Actual Variance with
Original Final _ Amounts Final Budget
REVENUES
Licenses and permits $ 510,900 $ 510,900 $ 1,150,268 $ 639,368
Fines and forfeitures 1,000 1,000 4,766 3,766
Charges for services 745,500 745,500 1,344,555 599,055
Other revenue - - 855 855
Total revenues 1,257,400 1,257,400 2,500,444 1,243,044
EXPENDITURES
Public services 2,278,598 2,341,069 2,918,166 (577,097)
Capital outlay - - 1,733 (1,733)
Total expenditures 2,278,598 2,341,069 2,919,899 (578,830)
Excess(deficiency)of revenues
over(under)expenditures (1,021,198) (1,083,669) (419,455) 664,214
OTHER FINANCING SOURCES(USES)
Transfers in 1,021,198 1,021,198 419,372 (601,826)
Total other financing sources(uses) 1,021,198 1,021,198 419,372 (601,826)
Net change in fund balance - (62,471) (83) 62,388
Fund balance,beginning of year 100 100 100 -
Fund balance,end of year $ 100 $ (62,371) $ 17 $ 62,388
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126
Required Supplementary Information
City of Moorpark
Schedule of Funding Progress for MRHP-OPEB
Year Ended June 30, 2014
Schedule of Funding Progress for MRHP(Amounts in 00015)
Entry age Unfunded
Actuarial Actuarial URAL as a%of
Actuarial Actuarial Value Accrued Liability Accrued Liability Funded Ratio Annual Covered Covered Payroll
Valuation Date of Assets(a) (b) (b-a) (a/b) Payroll(c) ((b-a)/c)
6/30/2008 $ - $ 364 $ 364 0.0% $ 4,519 8.1%
6/30/2010 487 590 103 82.5% 5,066 2.0%
6/30/2013 877 863 (14) 101.6% 4,890 -0.3%
GASB 45 was implemented prospectively in fiscal year 2009. There were no previous actuarial valuations.
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127
City of Moorpark
Notes to the Required Supplementary Information
Year Ended June 30, 2014
Budgetary Accounting •
The City adopts an annual budget on a basis consistent with GAAP for all governmental funds. The City
Manager is required to prepare and submit to the City Council the annual budget of the City and
administer it thereafter. All annual appropriations lapse at fiscal year-end. Throughout the year, the City
Council made several supplementing budgetary adjustments to various funds. These adjustments
resulted in a net appropriation increase of $6,337,087. This increase resulted primarily from additional
appropriations to various construction in progress projects, acquisition of property, prepayments of certain
liabilities and re-budgeted projects and amounts carried over from Fiscal Year 2012/13 as continuing
appropriations.
The Community Development Fund presents total budgeted expenditures of $2,341,069, total actual
expenditures of$2,919,899, and total excess of expenditures over budgeted amounts of$578,830.
In the current year the City did not budget for its Special Project—Major Capital Projects fund.
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128
SUPPLEMENTARY INFORMATION
129
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual-Police Facilities Fee -Major Capital Projects Fund
Year Ended June 30, 2014
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property
Investment Earnings $ - $ - $ 760 $ 760
Total Use of Money and Property - - 760 760
Maintenance Assesment
Police Facilities Fees 90,000 90,000 200,265 110,265
Total Maintenance Assesment 90,000 90,000 200,265 110,265
Total revenues 90,000 90,000 201,025 111,025
EXPENDITURES
Total expenditures - - - -
Net change in fund balance 90,000 90,000 201,025 111,025
Fund balance(deficit), beginning of year (1,849,206) (1,849,206) (1,849,206) -
Fund balance(deficit),end of year $ (1,759,206) $ (1,759,206) $ (1,648,181) $ 111,025
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130
City of Moorpark
Non-Major Governmental Funds
June 30, 2014
SPECIAL REVENUE FUNDS
Library Services Fund - is used to account for the financial resources for the operation of the City's
public library system. Sources of revenue are a percentage of property taxes, library fines, federal and
state grant funds, gifts, donations and fees for services.
Traffic Safety Fund - is used to account for revenues collected from traffic fines and forfeitures, which
are used for crossing guards and parking enforcement.
Affordable Housing - is used to account for grants used for development of affordable housing units.
Sources of revenue are grants, developer fees, and rental income.
Endowment Fund - is used to account for funds received by the City for certain projects or other sources
directed by the City Council to be held for the purpose of one-time expenditure of community-wide benefit
due to the impact of additional development. Sources of revenue are development fees.
Tierra Rejada/Spring Road A.O.0 Fund - is used to account for the financial resources for capital
projects related to streets and other improvements within the Tierra Rejada & Spring Road project area.
Sources of revenue are development fees.
Casey/Gabbert Road A.O.0 Fund - is used to account for the financial resources for capital projects
related to streets and other improvements within the Casey & Gabbert project area. Sources of revenue
are development fees. The City does not present a Budget to Actual schedule for this fund.
Freemont Storm Drain A.O.0 Fund - is used to account for the financial resources for capital projects
related to streets and other improvements within the Freemont Storm Drain project area. Sources of
revenue are development fees. The City does not present a Budget to Actual schedule for this fund.
State Gas Tax Fund - is used to account for fees used for street maintenance, right-of-way acquisition
and street construction. Source of revenue is gas tax money collected by the State of California.
Art in Public Places Fund - is used to account for fees used for public facilities improvements, most
recently the Veterans' Memorial. Source of revenue is development fees.
State and Federal Assistance Fund - is used to account for Federal and State grants used for the
construction of streets and related improvements and helps fund law enforcement. Sources of funds are
federal and state grants.
Local Transportation Transit Fund - is used to account for fees spent on local transportation
operations, maintenance and related programs. Sources of revenue include Ventura County 8C funding,
the Federal Transportation Administration grant funding and bus fares.
Solid Waste Fund - is used to account for fees used on programs that promote resource conservation,
recycling, composting, and proper disposal of hazardous household waste. Sources of revenue are
AB939 fees from rubbish operators, compost bin sales, the California Beverage Container grant, and the
Used Oil Recycling grant.
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131
City of Moorpark
Non-Major Governmental Funds
June 30, 2014
CAPITAL PROJECTS FUNDS
Capital Projects Fund - is used to account for financial resources used for major capital projects of the
general government operations. Sources of revenue are the Ventura Community College District tax
increment pass through fees and interest.
Moorpark Highlands Fund - is used to account for the remaining band proceeds issued for the
construction of certain public facilities for the benefit of the Community Facilities District 2004-01. The
City does not present a Budget to Actual schedule for this fund.
City Hall Building Fund - is used to account for the funds used to build the new Civic Center Complex.
Original source of revenue was transferred from the Endowment Fund; current revenue source is interest
earnings.
Equipment Replacement Fund - is used to account for the funds used to replace city equipment and
vehicles. Sources of revenue are interest earnings and transfers from the General Fund.
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132
City of Moorpark
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2014
Special Revenue
Library Traffic Affordable
Services Safety Housing
ASSETS
Cash and investments $ 765,368 $ 353,902 $ 4,159,194
Receivables:
Accounts - 40,576 -
Interest 832 1,278 9,614
Notes and loans - - 149,417
Due from other funds - - -
Property held for resale - - 55,573
Total assets $ 766,200 $ 395,756 $ 4,373,798
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 67,803 $ 16,526 $ 18,497
Due to other funds - -
Unavailable revenues 2 -
Total liabilities 67,805 16,526 18,497
Deferred inflows of resources:
Deferred loans - - 149,417
Fund balances:
Nonspendable - - 55,573
Restricted - 379,230 4,150,311
Committed 698,395 - -
Assigned
Unassigned -
Total fund balances(deficit) 698,395 379,230 4,205,884
Total liabilities, deferred inflows of
resources and fund balances $ 766,200 $ 395,756 $ 4,373,798
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133
Continued
Special Revenue
Tierra Rejada/ Freemount
Endowment Spring Road Casey/Gabbert Storm Drain
Fund A.O.C. A.O.C. A.O.C.
$ 5,514,529 $ - $ 91,589 $ 15,674
10,525 - 230 40
6,500 - - -
1,648,642 - - -
$ 7,180,196 $ - $ 91,819 $ 15,714
$ 17,511 $ - $ - $ -
- 177,006 - -
6,500 - - -
24,011 177,006 - -
1,648,642 - - -
- - 91,819 15,714
5,507,543 - - -
- (177,006) - -
7,156,185 (177,006) 91,819 15,714
$ 7,180,196 $ - $ 91,819 $ 15,714
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134
City of Moorpark
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2014
Special Revenue
Art State and
State Gas in Public Federal
Tax Places Assistance
ASSETS
Cash and investments $ 974,903 $ 2,619,489 $ 940,711
Receivables:
Accounts 120,149 - 98,828
Interest 2,533 5,705 1,010
Notes and loans - -Due from other funds - - -
Property held for resale - - -
Total assets $ 1,097,585 $ 2,625,194 $ 1,040,549
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 18,953 $ 7,919 $ 63,553
Due to other funds - - -
Unavailable revenues 6,384 - 890
Total liabilities 25,337 7,919 64,443
Deferred inflows of resources:
Deferred loans - - -
Fund balances:
Nonspendable - - -
Restricted 1,072,248 2,617,275 976,106
Committed - - -
Assigned - - -
Unassigned - - -
Total fund balances (deficit) 1,072,248 2,617,275 976,106
Total liabilities, deferred inflows of
resources and fund balances $ 1,097,585 $ 2,625,194 $ 1,040,549
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135
Continued
Special Revenue Total
Local
Transportation Solid Special
Transit Waste Revenue
$ 55,873 $ 1,021,681 $ 16,512,913
183,420 24,027 467,000
115 2,612 34,494
155,917
1,648,642
55,573
$ 239,408 $ 1,048,320 $ 18,874,539
$ 76,037 $ 14,172 $ 300,971
177,006
26,218 - 39,994
102,255 14,172 517,971
149,417
1,704,215
137,153 1,034,148 10,474,004
698,395
5,507,543
(177,006)
137,153 1,034,148 18,207,151
$ 239,408 $ 1,048,320 $ 18,874,539
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136
City of Moorpark
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2014
Capital Projects
Moorpark
Capital Highlands City Hall
Projects Improvement Building
ASSETS
Cash and investments $ 93,468 $ - $ 3,649,898
Receivables:
Accounts - - -
Interest 237 - 9,287
Notes and loans - - -
Due from other funds - - -
Property held for resale - - -
Total assets $ 93,705 $ - $ 3,659,185
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ - $ 13,699
Due to other funds - - -
Unavailable revenues - -
Total liabilities - - 13,699
Deferred inflows of resources:
Deferred loans - -
Fund balances:
Nonspendable - - -
Restricted - - -
Committed - - -
Assigned 93,705 - 3,645,486
Unassigned - - -
Total fund balances (deficit) 93,705 - 3,645,486
Total liabilities, deferred inflows of
resources and fund balances $ 93,705 $ - $ 3,659,185
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137
Continued
Capital Projects Total Total
Capital NonMajor
Equipment Projects Governmental
Replacement Funds Funds
$ 2,403,586 $ 6,146,952 $ 22,659,865
467,000
1,832 11,356 45,850
155,917
1,648,642
55,573
$ 2,405,418 $ 6,158,308 $ 25,032,847
$ 11,370 $ 25,069 $ 326,040
177,006
39,994
11,370 25,069 543,040
149,417
1,704,215
10,474,004
698,395
2,394,048 6,133,239 11,640,782
(177,006)
2,394,048 6,133,239 24,340,390
$ 2,405,418 $ 6,158,308 $ 25,032,847
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138
City of Moorpark
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
Non-Major Governmental Funds
Year Ended June 30, 2014
Special Revenue
Library Traffic Affordable
Services Safety Housing
REVENUES
Taxes $ 802,084 $ - $ -
Fines and forfeitures 19,131 180,252 200
Use of money and property 6,263 7,167 50,623
Charges for services 13,453 - 843,640
Intergovernmental - -
Other revenue - - 54,759
Total revenues 840,931 187,419 949,222
EXPENDITURES
Current:
General government - - 20,000
Public safety - 240,432 -
Public services 884,428 - 232,746
Parks and recreation - -Capital Outlay 654 - 13,265
Total expenditures 885,082 240,432 266,011
Excess (deficiency)of revenues
over(under)expenditures (44,151) (53,013) 683,211
OTHER FINANCING SOURCES(USES)
Transfers in - - -
Transfers out - (161,994) -
Total other financing sources (uses) - (161,994) -
Net change in fund balances (44,151) (215,007) 683,211
Fund balances(deficit), beginning of year 742,546 594,237 3,522,673
Fund balances(deficit), end of year $ 698,395 $ 379,230 $ 4,205,884
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139
Continued
Special Revenue
Tierra Rejada/ Freemount
Endowment Spring Road Casey/Gabbert Storm Drain
Fund A.O.C. A.O.C. A.O.C.
$ - $ - $ - $ -
129,660 - 1,229 213
2,220,015 - 2,030 -
32,195 - - -
2,381,870 - 3,259 213
204,430 - - -
154,231 - - -
358,661 - - -
2,023,209 - 3,259 213
2,023,209 - 3,259 213
5,132,976 (177,006) 88,560 15,501
$ 7,156,185 $ (177,006) $ 91,819 $ 15,714
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140
City of Moorpark
Combining Statement of Revenues, Expenditures,and Changes in Fund Balance
Non-Major Governmental Funds
Year Ended June 30, 2014
Special Revenue
Art State and
State in Public Federal
Gas Tax Places Assistance
REVENUES
Taxes -
Fines and forfeitures - -Use of money and property 13,541 29,697 4,437
Charges for services - 704,692 -
Intergovernmental 1,182,188 - 1,403,273
Other revenue 7,797 - 77,493
Total revenues 1,203,526 734,389 1,485,203
EXPENDITURES
Current:
General government - - -
Public safety - - 99,147
Public services 709,316 - 576,495
Parks and recreation - 13,441
Capital Outlay 149,689 26,441 -
Total expenditures 859,005 39,882 675,642
Excess (deficiency) of revenues
over(under)expenditures 344,521 694,507 809,561
OTHER FINANCING SOURCES(USES)
Transfers in - - -
Transfers out (149,568) - -
Total other financing sources (uses) (149,568) - -
Net change in fund balances 194,953 694,507 809,561
Fund balances(deficit), beginning of year 877,295 1,922,768 166,545
Fund balances(deficit), end of year $ 1,072,248 $ 2,617,275 $ 976,106
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141
Continued
Special Revenue Total
Local Special
Transportation Solid Revenue
Transit Waste Funds
$ $ 280,127 $ 1,082,211
199,583
743 14,044 257,617
68,432 3,140 3,855,402
542,917 10,191 3,170,764
140,049
612,092 307,502 8,705,626
20,000
339,579
610,629 289,310 3,507,354
13,441
40,728 - 385,008
651,357 289,310 4,265,382
(39,265) 18,192 4,440,244
(311,562)
(311,562)
(39,265) 18,192 4,128,682
176,418 1,015,956 14,078,469
$ 137,153 $ 1,034,148 $ 18,207,151
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142
City of Moorpark
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance, (continued)
Non-Major Governmental Funds
Year Ended June 30, 2014
Capital Projects
Moorpark
Capital Highlands City Hall
Projects Improvement Building
REVENUES
Taxes $ - $ - $ -
Fines and forfeitures - - -
Use of money and property 1,272 - 49,927
Charges for services - - -
Intergovernmental - - -
Other revenue - - -
Total revenues 1,272 - 49,927
EXPENDITURES
Current:
General government - - -
Public safety - - -
Public services - - -
Parks and recreation - - -
Capital Outlay - 2,844 41,575
Total expenditures - 2,844 41,575
Excess(deficiency) of revenues
over(under) expenditures 1,272 (2,844) 8,352
OTHER FINANCING SOURCES (USES)
Transfers in - - -
Transfers out - - -
Total other financing sources(uses) - - -
Net change in fund balances 1,272 (2,844) 8,352
Fund balances(deficit), beginning of year 92,433 2,844 3,637,134
Fund balances (deficit), end of year $ 93,705 $ - $ 3,645,486
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143
Continued
Capital Projects Total Total
Capital Nonmajor
Equipment Projects Governmental
Replacement Funds Funds
$ $ $ 1,082,211
199,583
6,783 57,982 315,599
3,855,402
3,170,764
11,500 11,500 151,549
18,283 69,482 8,775,108
20,000
339,579
3,507,354
13,441
135,044 179,463 564,471
135,044 179,463 4,444,845
(116,761) (109,9811 4,330,263
2,252,366 2,252,366 2,252,366
(311,562)
2,252,366 2,252,366 1,940,804
2,135,605 2,142,385 6,271,067
258,443 3,990,854 18,069,323
$ 2,394,048 $ 6,133,239 $ 24,340,390
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145
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual-Library Services -Special Revenue Fund
Year Ended June 30, 2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes $ 775,000 $ 775,000 $ 802,084 $ 27,084
Fines and forfeitures 20,000 20,000 19,131 (869)
Use of money and property 1,000 1,000 6,263 5,263
Charges for services 15,000 15,000 13,453 (1,547)
Total revenues 811,000 811,000 840,931 29,931
EXPENDITURES
Current:
Public services 894,444 935,250 884,428 50,822
Capital Outlay - - 654 (654)
Total expenditures 894,444 935,250 885,082 50,168
Net change in fund balance (83,444) (124,250) (44,151) 80,099
Fund balance, beginning of year 742,546 742,546 742,546 -
Fund balance,end of year $ 659,102 $ 618,296 $ 698,395 $ 80,099
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146
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual -Traffic Safety-Special Revenue Fund
Year Ended June 30, 2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Fines and forfeitures $ 150,000 $ 150,000 $ 180,252 $ 30,252
Use of money and property 5,000 5,000 7,167 2,167
Total revenues 155,000 155,000 187,419 32,419
EXPENDITURES
Public safety 232,793 258,291 240,432 17,859
Total expenditures 232,793 258,291 240,432 17,859
Excess(deficiency)of revenues
over(under)expenditures (77,793) (103,291) (53,013) 50,278
OTHER FINANCING SOURCES(USES)
Transfers out - (161,994) (161,994). -
Total other financing sources(uses) - (161,994) (161,994) -
Net change in fund balance (77,793) (265,285) (215,007) 50,278
Fund balance, beginning of year 594,237 594,237 594,237 -
Fund balance,end of year $ 516,444 $ 328,952 $ 379,230 $ 50,278
•
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147
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual -City Affordable Housing -Special Revenue Fund
Year Ended June 30, 2014
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Fines and Forfeitures $ - $ - $ 200 $ 200
Use of Money and Property 50,000 50,000 50,623 623
Charges for Services 234,300 234,300 843,640 609,340
Other Revenues - - 54,759 54,759
Total revenues 284,300 284,300 949,222 664,922
EXPENDITURES
General government 20,000 20,000 20,000 -
Public services 257,575 305,357 232,746 72,611
Capital Outlay - .. 13,265 (13,265)
Total expenditures 277,575 325,357 266,011 59,346
Net change in fund balance 6,725 (41,057) 683,211 724,268
Fund balance, beginning of year 3,522,673 3,522,673 3,522,673 -
Fund balance,end of year $ 3,529,398 $ 3,481,616 $ 4,205,884 $ 724,268
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148
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual -Endowment-Special Revenue Fund
Year Ended June 30,2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 95,000 $ 95,000 $ 129,660 $ 34,660
Charges for services 678,000 678,000 2,220,015 1,542,015
Intergovernmental - - 32,195 32,195
Total revenues 773,000 773,000 2,381,870 1,608,870
EXPENDITURES
Public services 201,291 200,648 204,430 (3,782)
Capital outlay 948,541 394,464 154,231 240,233
Total expenditures 1,149,832 595,112 358,661 236,451
Net change in fund balance (376,832) 177,888 2,023,209 1,845,321
Fund balance,beginning of year 5,132,976 5,132,976 5,132,976 -
Fund balance,end of year $ 4,756,144 $ 5,310,864 $ 7,156,185 $ 1,845,321
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149
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual-Tierra Rejada Spring Road -Special Revenue Fund
Year Ended June 30, 2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Maintenance assessments $ 142,000 $ 142,000 $ - $ (142,000)
Other revenue - -
Total revenues 142,000 142,000 - (142,000)
EXPENDITURES
Total expenditures - - - -
Net change in fund balance 142,000 142,000 - (142,000)
Fund balance, beginning of year (177,006) (177,006) (177,006) -
Fund balance, end of year $ (35,006) $ (35,006) $ (177,006) $ (142,000)
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150
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual-State Gas Tax-Special Revenue Fund
Year Ended June 30, 2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ - $ - $ 13,541 $ 13,541
Intergovernmental 946,000 946,000 1,182,188 236,188
Other revenue - - 7,797 7,797
Total revenues 946,000 946,000 1,203,526 257,526
EXPENDITURES
Public services 750,938 800,539 709,316 91,223
Capital outlay 32,966 229,511 149,689 79,822
Total expenditures 783,904 1,030,050 859,005 171,045
Excess(deficiency)of revenues
over(under)expenditures 162,096 (84,050) 344,521 428,571
OTHER FINANCING SOURCES(USES)
Transfers out - (149,568) (149,568) -
Total other financing sources(uses) - (149,568) (149,568) -
Net change in fund balance 162,096 (233,618) 194,953 428,571
Fund balance,beginning of year 877,295 877,295 877,295 -
Fund balance,end of year $ 1,039,391 $ 643,677 $ 1,072,248 $ 428,571
•
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151
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual-Art in Public Places-Special Revenue Fund
Year Ended June 30,2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 75,000 $ 75,000 $ 29,697 $ (45,303)
Charges for services 275,000 275,000 704,692 429,692
Total revenues 350,000 350,000 734,389 384,389
EXPENDITURES
Parks and recreation 13,545 13,496 13,441 55
Capital outlay 300,000 300,000 26,441 273,559
Total expenditures 313,545 313,496 39,882 273,614
Net change in fund balance 36,455 36,504 694,507 658,003
Fund balance, beginning of year 1,922,768 1,922,768 1,922,768 -
Fund balance, end of year $ 1,959,223 $ 1,959,272 $ 2,617,275 $ 658,003
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152
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual -State and Federal Assistance -Special Revenue Fund
Year Ended June 30, 2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ - $ - $ 4,437 $ 4,437
Intergovernmental 4,265,290 4,450,447 1,403,273 (3,047,174)
Other revenue - - 77,493 77,493
Total revenues 4,265,290 4,450,447 1,485,203 (2,965,244)
EXPENDITURES
Public safety 100,000 100,000 99,147 853
Public services 681,960 680,920 576,495 104,425
Capital outlay 3,452,344 3,514,186 - 3,514,186
Total expenditures 4,234,304 4,295,106 675,642 3,619,464
Net change in fund balance 30,986 155,341 809,561 654,220
Fund balance, beginning of year 166,545 166,545 166,545 -
Fund balance, end of year $ 197,531 $ 321,886 $ 976,106 $ 654,220
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153
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual -Local Transportation Transit-Special Revenue Fund
Year Ended June 30, 2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ - $ - $ 743 $ 743
Charges for services 62,000 62,000 68,432 6,432
Intergovernmental 776,900 810,900 542,917 (267,983)
Total revenues 838,900 872,900 612,092 (260,808)
EXPENDITURES
Public services 680,007 714,136 610,629 103,507
Capital outlay 335,182 335,182 40,728 294,454
Total expenditures 1,015,189 1,049,318 651,357 397,961
Net change in fund balance (176,289) (176,418) (39,265) 137,153
Fund balance, beginning of year 176,418 176,418 176,418 -
Fund balance,end of year $ 129 $ - $ 137,153 $ 137,153
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154
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual -Solid Waste-Special Revenue Fund
Year Ended June 30, 2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes $ 285,000 $ 285,000 $ 280,127 $ (4,873)
Use of mdney and property 13,000 13,000 14,044 1,044
Charges for services 2,700 2,700 3,140 440
Intergovernmental 20,300 20,300 10,191 (10,109)
Other revenue 5,000 5,000 - (5,000)
Total revenues 326,000 326,000 307,502 (18,498)
EXPENDITURES
Public services 307,019 313,247 289,310 23,937
Total expenditures 307,019 313,247 289,310 23,937
Net change in fund balance 18,981 12,753 18,192 5,439
Fund balance,beginning of year 1,015,956 1,015,956 1,015,956 -
Fund balance,end of year $1,034,937 $1,028,709 $1,034,148 $ 5,439
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155
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual -Capital Projects -Capital Projects Fund
Year Ended June 30, 2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ - $ - $ 1,272 $ 1,272
Total revenues - 1,272 1,272
EXPENDITURES
Total expenditures - - - -
Excess of revenues
over expenditures - - 1,272 1,272
OTHER FINANCING SOURCES(USES)
Transfers in 60,000 60,000 - (60,000)
Total other financing sources(uses) 60,000 60,000 - (60,000)
Net change in fund balance 60,000 60,000 1,272 (58,728)
Fund balance, beginning of year 92,433 92,433 92,433 -
Fund balance, end of year $ 152,433 $ 152,433 $ 93,705 $ (58,728)
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156
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual-City Hall Building -Capital Projects Fund
Year Ended June 30,2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 50,000 $ 50,000 $ 49,927 $ (73)
Total revenues 50,000 50,000 49,927 (73)
EXPENDITURES
Capital outlay 3,457,629 3,456,362 41,575 3,414,787
Total expenditures 3,457,629 3,456,362 41,575 3,414,787
Net change in fund balance (3,407,629) (3,406,362) 8,352 3,414,714
Fund balance,beginning of year 3,637,134 3,637,134 3,637,134 -
Fund balance,end of year $ 229,505 $ 230,772 $ 3,645,486 $ 3,414,714
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157
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual-Equipment Replacement-Capital Projects Fund
Year Ended June 30, 2014
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 5,000 $ 5,000 $ 6,783 $ 1,783
Other revenue - - 11,500 11,500
Total revenues 5,000 5,000 18,283 13,283
EXPENDITURES
Capital outlay 59,000 142,023 135,044 6,979
Total expenditures 59,000 142,023 135,044 6,979
Excess(deficiency)of revenues
over(under)expenditures (54,000) (137,023) (116,761) 20,262
OTHER FINANCING SOURCES(USES)
Transfers in - 2,252,366 2,252,366 -
Total other financing sources(uses) - 2,252,366 2,252,366 -
Net change in fund balance (54,000) 2,115,343 2,135,605 20,262
Fund balance, beginning of year 258,443 258,443 258,443 -
Fund balance,end of year $ 204,443 $ 2,373,786 $ 2,394,048 $ 20,262
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158
City of Moorpark
Statement of Fiduciary Net position
Agency Funds
Year Ended June 30, 2014
Balance Balance
June 30,2013 Additions Deletions June 30,2014
General Trust
Assets
Cash and investments $ 3,895,779 $ 8,074,709 $ (7,960,622) $ 4,009,866
Cash and investments with fiscal agent 6,824,889 6,709,494 (6,097,193) 7,437,190
Accounts receivable 16,675 61,038 (16,643) 61,070
Total assets $ 10,737,343 $ 14,845,241 $ (14,074,458) $ 11,508,126
Liabilities
Accounts payable $ 82,149 $ 1,029,343 $ (875,251) $ 236,241
General deposits 3,803,596 1,189,862 (1,219,804) 3,773,654
Due to bondholders 6,851,598 6,929,583 (6,282,950) 7,498,231
Total liabilities $ 10,737,343 $ 9,148,788 $ (8,378,005) $ 11,508,126
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159
STATISTICAL SECTION
160
Statistical Section
This part of the City of Moorpark comprehensive annual financial report presents detailed
information regarding five categories: financial trends, revenue capacity, demographic and
economic information, and operating information. These schedules are presented as a context
for understanding the City's overall financial health.
Statistical Section Categories
Financial Trends Data
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
Revenue Capacity Data
These schedules contain information to help the reader assess the City's most significant local
revenue source, the property tax.
Debt Capacity Data
These schedules contain information to help the reader assess the City's current levels of
outstanding debt and its ability to issue additional debt in the future.
Demographic and Economic Information
These schedules contain demographic and economic indicators to help the reader understand
the environment within which the City's financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services it provides and the activities it
performs.
161
CITY OF MOORPARK
Net Position by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
2005 2006 2007 2008 2009
Governmental activities:
Invested in capital assets,
net of related debt $ 99,760,671 $108,190,324 $125,900,770 $ 130,071,108 $ 130,581,499
Restricted 46,405,391 57,986,366 100,649,409 101,613,368 94,878,693
Unrestricted 26,413,978 26,965,428 6,458,224 3,641,173 14,213,503
Total govemmental activities net position $ 172,580,040 $193,142,118 $233,008,403 $235;325,649 $239,673,695
The City of Moorpark does not have any business-type activities.
•
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CITY OF MOORPARK
Net Position by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
2010 2011 2012 2013 2014
Governmental activities:
Invested in capital assets,
net of related debt $ 141,095,551 $145,841,042 $139,795,930 $262,271,564 $259,798,991
Restricted 91,504,803 72,654,599 87,274,980 82,125,331 85,872,675
Unrestricted 15,828,208 13,402,969 7,909,301 10,042,168 15,655,932
Total governmental activities net position $248,428,562 $231,898,610 $234,980,211 $354,439,063 $361,327,598
•
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•
CITY OF MOORPARK
Changes in Net Position
Last Ten Fiscal Years
(Accrual basis of accounting)
2005 2006 2007 2008 2009
Expenditures:
General government $3,030,395 $ 3,044,381 $ 1,639,628 $ 1,949,206 $ 2,041,596
Public safety 5,709,323 6,230,057 6,317,283 6,882,072 7,035,384
Public services 9,844,050 13,106,843 21,231,766 20,580,204 18,170,325
Parks and recreation 2,304,852 2,771,270 4,293823 4,551,045 4,470,524
Interest on long-term debt 978,843 1,333,370 1,332,541 1,773,841 1,616,843
Total governmental activities expenses 21,867,463 26,485,921 34,815,041 35,736,368 33,334,672
Program revenues:
Charges for services:
General government 2,010,540 2,201,590 191,674 283,576 232,926
Public safety 344,019 340,341 598,500 633,131 538,636
Public services 2,776,976 4,163,781 6,612,769 5,743,200 3,172,708
Parks and recreation 501,283 _ 536,166 604,904 756,885 644,979
Total charges for services 5,632,818 7,241,878 8,007,847 7,416,792 4,589,249
Operating contributions and grants 2,313,834 3,237,143 4,489,945 7,113,883 6,172315
Capital contributions and grants 4,633,166 18,027,831 38,337,638 5,481,972 3,326,778
Total governmental activities
•
program revenues 12,579,818 28,506,852 50,835,430 20,012,647 14,088,342
Net program revenues(expenses) (9,287,645) 2,020,931 16,020,389 (15,723,721) (19,246,330)
General revenues and other changes in net position:
Taxes:
Property tax 2,655,093 2,929,842 3,334,491 4,505,980 7,802,643
Property tax,Redevelopment Agency 3,901,779 5,530,198 6,347,692 6,887,079 7,054,432
Franchise tax 955,829 1,080,893 1,126,951 1,150,180 1,171,556
Sales tax 2,046,368 2,260,786 2,192,327 2,306,281 2,329,522
Sales tax in lieu 537,485 608,298 704,562 779,263 849,227
Motor vehicle in lieu 2,836,154 2,734,470 2,860,207 3,038,440 125,307
Investment income 1,725,579 3,261,384 6,556,186 2,491,856 2,875,649
Contributed Capital - - - - -
Other 1,160,805 135276 58,841 139,728 386,040
Gain on sale of property 48,339 - 276,797 - -
Countysettlement - - - - 1,000,000
Extraordinary item-Gain on Dissolution of - - - - -
Total governmental activities 15,867,431 18,541,147 23,458,054 21,298,807 23,594,376
Changes in net position-
governmental activities $6,579,786 $20,562,078 $39,478,443 $ 5,575,086 $ 4,348,046
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CITY OF MOORPARK
Changes in Net Position
Last Ten Fiscal Years
(Accrual basis of accounting)
2010 2011 2012 2013 2014
Expenditures:
General government $ 1,603,279 $ 3,201,184 $ 2,217,953 $ 4,149,965 $2,169,069
Public safety 7,016,015 7,070,049 6,158,455 6,550,936 6,882,753
Public services 13,589,878 31,775,462 11,124,523 9,948,865 11,779,873
Parks and recreation 4,934,002 4,658,717 5,704,208 5,755,528 6,026,182
Interest on long-term debt 1,504,502 1,492,604 354,412 - -
Total governmental activities expenses 28,647,676 48,198,016 25,559,551 26,405,294 26,857,877
Program revenues:
Charges for services:
General government 258,431 293,008 407,883 587,915 1,474,249
Public safety 477,305 492,847 445,642 809,257 2,657,332
Public services 2,769,641 2,473,770 1,988,453 4,154,598 7,815,032
Parks and recreation 643,593 697,787 858,333 973,761 1,913,045
Total charges for services 4,148,970 3,957,412 3,700,311 6,525,531 13,859,658
Operating contributions and grants 4,128,842 5,999,168 3,702,582 3,533,608 4,364,461
Capital contributions and grants 1,970,931 1,703,076 2,106,706 1,879,634 2,010,143
Total governmental activities
program revenues 10,248,743 11,659,656 9,509,599 11,938,773 20,234,262
Net program revenues(expenses) (18,398,933) (36,538,360) (16,049,952) (14,466,521) (6,623,615)
General revenues and other changes in net position:
Taxes:
Property tax 7,449,063 7,287,282 6,943,275 6,776,729 6,841,765
Property tax,Redevelopment Agency 6,864,777 6,755,960 3,389,064 - -
Franchise tax 1,171,825 1,207,778 1,231,741 1,222,956 1,222,759
Sales tax 2,382,010 2,577,105 2,622,419 2,730,871 2,695,884
Sales tax in lieu 588,635 940,791 857,217 875,160 1,089,362
Motor vehicle in lieu 109,136 170,592 18,590 19,262 15,942
Investment income 853,074 856,413 1,206,622 142,222 1,153,683
Contributed Capital - - 663,818 - -
Other 283,372 212,487 245,235 299,730 492,755
Gain on sale of property - - - -
County settlement - - - -
Extraordinary item-Gain on Dissolution of - - 356,845 - -
Total governmental activities 19,701,892 20,008,408 17,534,826 12,066,930 13,512,150
Changes in net position-
governmental activities $ 1,302,959 $(16,529,952) $ 1,484,874 $(2,399,591) $6,888,535
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CITY OF MOORPARK
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2005 2006 2007 2008 2009
General fund:
Reserved $ 5,772,444 $ 2,943,353 $ - $ 95,397 $ 373,209
Unreserved 12,527,255 18,301,058 24,405,620 3,625,348 2,832,620
Nonspendable - - - - -
Restricted - - - - -
Committed - - - - -
Assigned
_ _ - - -
Unassigned _ _ _ - -
Total general fund $18,299,699 $21,244,411 $ 24,405,620 $ 3,720,745 $ 3,205,829
All other governmental funds:
Reserved $13,889,036 $14,124,235 $ 41,864,116 $ 35,103,620 $ 33,719,016
Unreserved, reported in:
Special revenue funds 26,977,320 36,903,391 41,486,631 42,761,089 37,278,628
Capital projects funds 3,361,134 1,293,998 16,807,370 39,098,065 35,699,829
Debt Service funds (346,716) (321,425) 83,243 (1,025,927) 261,336
Non-major funds 8,272,652 9,724,941 8,693,969 13,384,413 25,043,397
Fund Balances:
Nonspendable - - - - -
Restricted - - - - -
Committed - - - -
Assigned - - - - -
Unassigned - - - - -
Total all other governmental funds $52,153,426 $61,725,140 $108,935,329 $ 129,321,260 $ 132,002,206
•
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CITY OF MOORPARK
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2010 2011 2012 2013 2014
General fund:
Reserved $ 337,286 $ - $ - $ - $ -
Unreserved 2,662,713 - - - -
Nonspendable - 220,976 1,275,022 635,176 635,899
Restricted - - - - -
Committed - - - - -
Assigned - - - - -
Unassigned - 2,779,024 2,999,000 3,000,000 3,000,000
Total general fund $ 2,999,999 $ 3,000,000 $ 4,274,022 $ 3,635,176 $ 3,635,899
All other governmental funds:
Reserved $ 38,208,807 $ - $ - $ - $ -
Unreserved,reported in:
Special revenue funds 32,207,690 - - - -
Capital projects funds 33,735,939 - - - -
Debt Service funds 294,202 - - - -
Non-major funds 25,335,288 - - - -
Fund Balances:
Nonspendable - 14,862,594 3,055,064 10,478,901 10,253,789
Restricted - 66,565,551 55,945,095 44,067,428 49,389,385
Committed - 795,208 783,281 742,546 698,395
Assigned - 28,849,138 30,892,276 33,084,456 36,190,577
Unassigned - (2,124,660) (2,047,164) (2,026,212) (1,825,187)
Total all other governmental funds $129,781,926 108,947,831 88,628,552 86,347,119 94,706,959
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•
CITY OF MOORPARK
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2005 2006 2007 2008 2009
Revenues:
Taxes $9,139,722 $12,231,076 $13,706,024 $15,392,269 $19,716,636
Licenses and permits 54,180 72,365 65,630 72,951 645,010
Fines and forfeitures 344,019 340,341 343,579 358,665 484,930
Uses of money and property 1,924,579 3,261,384 7,085,104 5,684,111 3,114,881
Charges for services 2,558,974 2,665,391 338,929 677,277 3,813,159
Intergovernmental 5,150,992 6,302,193 6,163,985 7,549,040 3,948,059
Maintenance assessments 1,963,190 1,845,742 1,922,471 4,205,700 3,491,975
Franchise fees 1,231,763 283,162 292,003 301,514 -
Buildingandsafetyfees 431,959 1,110,715 716,552 530,761 -
Planning and public work fees 1,967,751 3,053,066 1,649,002 1,938,143 -
Development fees 2,669,976 15,568,347 6,403,851 4,501,837 -
Contributions from prop owners - - 34,066,993 - -
Other 2,832,962 397,574 2,030,211 433,378 398,539
Total revenues 30,270,067 47,131,356 74,784,334 41,645,646 35,613,189
Expenditures:.
Current:
General government 2,893,359 2,919,564 1,471,354 1,835,801 1,926,283
Public safety 5,690,820 6,211,461 6,083,917 6,637,757 6,814,425
Public services 8,098,147 11,215,406 9,608,754 12,505,613 11,259,297
Parks and recreation 2,081,723 2,544,206 4,039,888 4,291,867 4,182,091
Capital outlay 7,810,879 10,038,439 19,477,866 14,682,017 8,100,604
Debt service:
Principal 405,000 435,910 440,000 455,000 475,000
Interest 1,158,585 1,251,354 1,400,985 1,631,932 1,594,062
Bond issuance costs - - 505,588 - -
Total expenditures 28,138,513 34,616,340 43,028,352 42,039,987 34,351,762
Excess of revenues over
expenditures 2,131,554 12,515,016 31,755,982 (394,341) 1,261,427
Other financing sources(uses):
Gain from sale of property 48,339 1,410 276,797 - -
Bond Proceeds - - 11,695,000 - -
Discount on Bonds - - (325,401) - -
County settlements 1,000,000
Transfers in 2,027,315 3,352,002 9,457,260 27,626,755 17,062,650
Transfers out (2,027,315) (3,352,002) (9,457,260) (27,626,755) (17,062,650)
Total other financing
sources(uses) 48,339 1,410 11,646,396 - 1,000,000
Extraordinary Item - - - - -
Net change in fund balances $2,179,893 $12,516,426 $43,402,378 $ (394,341) $ 2,261,427
Debt service as a percentage of
noncapital expenditures 8.3% 7.4% 8.7% 8.3% 8.6%
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CITY OF MOORPARK
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2010 2011 2012 2013 2014
Revenues:
Taxes $18,730,771 $ 19,042,900 $ 16,147,175 $12,662,488 $12,931,981
Licenses and permits 598,370 587,186 561,530 498,102 1,279,619
Fines and forfeitures 436,377 441,543 446,426 420,555 425,844
Uses of money and property 1,547,229 1,537,255 1,381,235 482,129 1,533,697
Charges for services 3,284,275 2,579,593 3,559,454 5,170,238 10,785,334
Intergovernmental 2,629,132 4,786,235 1,627,462 2,503,734 3,257,823
Maintenance assessments 1,950,431 2,112,992 2,114,957 1,893,699 2,159,121
Franchise fees - - - - -
Building and safety fees - - - - -
Planning and public work fees - - - - -
Development fees - - - - -
Contributions from prop owners - - - - -
Other 587,832 833,082 1,345,246 167,784 438,612
Total revenues 29,764,417 31,920,786 27,183,485 23,798,729 32,812,031
Expenditures
Current:
General government 1,497,916 2,289,299 890,396 2,125,004 1,746,028
Public safety 6,769,484 6,839,355 6,467,065 6,306,906 6,643,550
Public services 12,343,896 12,876,132 8,321,090 7,391,632 9,126,851
Parks and recreation 4,453,400 4,074,490 5,038,957 5,086,773 5,354,601
Capital outlay 5,548,179 24,506,524 4,679,053 5,144,756 1,580,438
Debt service:
Principal 495,000 1,874,064 590,122 - -
Interest 1,482,799 1,471,516 688,825 - -
Bond issuance costs - - - - -
Total expenditures 32,590,674 53,931,380 26,675,508 26,055,071 24,451,468
Excess of revenues over
expenditures (2,826,257) (22,010,594) 507,977 (2,256,342) 8,360,563
Other financing sources(uses):
Gain from sale of property - - - - -
Bond Proceeds - - - - -
Discount on Bonds - - - - -
County settlements - - - - -
Transfers in 9,378,101 3,820,738 4,739,189 3,262,665 4,718,044
Transfers out (9,378,101) (2,644,238) (4,739,189) (3,262,665) (4,718,044)
Total other financing
sources(uses) - 1,176,500 - - -
Extraordinary Item - - (19,553,234) - -
Net change in fund balances $ (2,826,257) $(20,834,094) $(19,045,257) $ (2,256,342) $ 8,360,563
Debt service as a percentage of
noncapital expenditures 7.9% 12.8% 6.2% 0.0% 0.0%
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170
CITY OF MOORPARK
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
City Redevelopment Agency
Fiscal Year Taxable Taxable Total
Ended Less: Assessed Less: Assessed Direct Tax
June30 Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value Rate
2005 $3231418.940 $172,769,806 $43,305,637 $3,447494383 $532445,978 593,810,856 $3904910 $630,161,744 0031%
2006 3721,591791 166,802,350 43313074 3933707.215 660,810,677 99,693,057 3,931,766 764435,500 0.037%
2007 4,157,360033 165,796,359 43364,070 4,366.522.462 743.592,913 102,795641 3.958.627 850347,181 0.037%
2006 4,558,597,806 173209606 45,607,510 4.777,414,922 809,452,407 102442,198 4,276,693 916,171,298 0033%
2009 4,700,305,496 174,181.146 46,351,377 4920,838,019 828,244,210 102,730,045 4,309,164 935,283,419 0035%
2010 4,619,910,655 180,988.669 46,474,508 4,847,373,832 825,093,781 113,302,525 4,333,240 942,729,546 0038%
2011 4,659,133835 153,090,627 46,689,455 4,856,913,917 813,947,565 110,905,079 4,436,801 929,289,445 0040%
2012 4,662,536,870 118,452,976 46,220,250 4,827,210,096 829.750,375 76,258,253 4,422,902 910,431,530 0031%
2013 4,596,277,650 115,888,876 45,786,243 4,757,952,769 867,853,781 70,454,127 4,491,843 942,799,751 1068%
2014 4,718,569,672 119,712,860 45,054,167 4,883,336,699 878,368,970 70,500.448 4,423,367 953,292,785 1.066%
Source. Ventura County Assessor's Office
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171
CITY OF MOORPARK
Direct and Overlapping Property Tax Rates
(Rate per$100 of assessed value)
Last Ten Fiscal Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1 Basic Levy 100000 100000 1.00000 1.00000 1 00000 1.00000 1 00000 1.00000 1.00000 1.00000
Conejo Valley Untried 0.02800 0.02670 0.02490 0.02420 002500 002640 0.02850 0.03070 0.03240 0.03270
Metropolitan Water District 0.00580 0.00520 0.00470 0.00450 000430 0.00430 0.00370 000370 0.00350 0.00350
Moorpark Unified 0.03140 003660 0.03740 0.03310 0.03510 003760 0.03980 0.05750 004490 0.03950
Ventura Community 0.01300 0.01300 0.01270 0.00500 0.01520 001390 001510 0.01400 0.01910 0,01670
2 Total Direct 8 1.07820 1.08150 1.07970 1.06680 1.07960 1.08220 1 08710 1.10590 1.09990 1.09240
3 City's Share of 1%Levy 0.07447 0.07447 0.07447 0.07447 0 09094 0.09077 0.90770 0.09077 0.09078 009078
4 Redevelopment Rate 1.00580 1.00520 1.00470 100450 1.00430 1.00430 100370 100370 -5 Total Direct Rate 0.17341 0.19150 0.19826 0.19963 0.21254 0.21589 0.21304 0.21047 0.21806 0.09508
Notes
1 In 1978 California voters passed Proposition 13 which sets the property tax rate at a 1.00%fixed amount. This 1 00%is shared by all taxing agencies for which the
subject property resides within. In addition to the 1.00%fixed amount,properly owners are charged taxes as a percentage of assessed property values for the
payment of any voter approved bonds.
2 Overlapping rates are those of local and county governments that apply to property owners within the City.Not all overlapping rates apply to all city properly owners.
3 Citys share of 1%levy is based on the City's share of the general fund tax rate area with the larges net taxable value within the city. ERAF general fund tax shifts
may not be included In tax ratio figures.
4 Redevelopment rates is based on the largest RDA tax rate area and only includes rate(s)from indebtedness adopted prior to 1989 per California State statute. RDA
direct and overlappng rates are applied only to the incremental property values. The approval of Abxl 26 eliminated redevelopment frau the State of California for
the fiscal year 2012/13 and years thereafter.
5 Total Direct Rates is the weighted average of all individual direct rates applied to by the government preparing the statistical section information and excludes
revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas.
Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposed of this report,residual revenue is assumed
to be distributed to the City in the same proportions as general fund revenue.
Source HdL,Goren 8 Cone
Venture County Assessor
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172
CITY OF MOORPARK
Principal Property Tax Payers
Current Year and Ten Years Ago
2014 2004
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayers Value" Value Value Value
NF Moorpark Multifamily Assoc $ 73,122,239 1.50 % $ - - %
Waterstone Properties Moorpark LLC 69,933,039 1.43 % - -
Moorpark Center LLC 44,719,000 0.92 % - - %
Village at Moorpark LLC 30,503,063 0.62 % - - %
Toll Land XIX LLC 28,632,492 0.59 % 45,749,526 1.33%
EB West Properties Inc. 22,888,798 0.47% - -%
Tuscany Square Partners LLC 22,693,311 0.46 % - - %
G-S Partnership 22,413,963 0.46 % 19,363,532 0.56 %
Mission Bell West LP 22,125,629 0.45 % -
James Birkenshaw, Et. Al. Lessor 20,739,384 0.42 % 18,200,526 0.53%
• $ 357,770,918 7.33% $83,313,584 2.42%
* Due to varying tax rates, the assessed value does not necessarily mean the highest tax.
The assessed value includes secured property tax revenue.
Source: HdL 2013-2014 property data
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173
CITY OF MOORPARK
Secured Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Collections
Fiscal Taxes Levied Fiscal Year of Levy from Total Collections
Year Ended for the Percent Previous Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy
2005 $ 2,391,927 $ 1,796,670 75.1 % $ 87,669 $ 1,884,339 78.8%
2006 2,705,083 1,994,418 73.7% 93,157 2,087,575 77.2%
2007 3,010,493 2,432,164 80.8% 124,057 2,556,221 84.9%
2008 4,072,510 3,376,883 82.9% 145,134 3,522,017 86.5%
2009 3,763,078 3,393,933 90.2% 208,491 3,602,423 95.7%
2010 3,682,559 2,789,672 75.8% 262,057 3,051,730 82.9%
2011 3,663,098 3,388,402 92.5% 184,044 3,572,446 97.5%
2012 3,638,780 3,394,794 93.3% 162,584 3,557,378 97.8
2013 3,724,968 3,533,421 94.9% 158,049 3,691,470 99.1 %o
2014 3,817,587 3,545,339 92.9% 125,651 3,670,990 96.2%
Source: Ventura County Auditor Controller's Office Levy Letter
Note: In FY 2007/08$785,653 in adjustments(including the Library)were added to the Levy Letter
Subsequent years=Realized Revenue Report, Prior secured
Collected within FY=Realized Revenue Report Current secured
•
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CITY OF MOORPARK
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Fiscal Year General Tax Total Total Percentage Debt
Ended Obligation Allocation Governmental Primary of Personal Per
June 30 Bonds Bonds 1 Activities Government Income 2 Capita 2
2005 $ - $ 19,300,000 $ 19,300,000 $19,300,000 1% 537
2006 - 18,880,000 18,880,000 18,880,000 1% 527
2007 - 30,135,000 30,135,000 30,135,000 1% 826
2008 - 29,680,000 29,680,000 29,680,000 1% 803
2009 - 29,185,000 29,185,000 29,185,000 1% 787
2010 - 28,710,000 28,710,000 28,710,000 1% 764
2011 - 28,155,000 28,155,000 28,155,000 1% 811
2012 - - - - 0% -
2013 - - - - 0% -
2014 -
-
- 0% -
Notes: Details regarding the City's outstanding debt can be found in the notes to the
financial statements.
1 The Moorpark Redevelopment Agency issued $9,860,000 of new tax allocation bonds in 1999,
$11,625,000 in 2001, and$11,695,000 in 2006.
Tax Allocation Bonds are the debt of the Successor Agency and not a part of the City.
Please read NOTE 14, pages 62-65.
2 These ratios are calculated using personal income and population for the prior calendar year.
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175
CITY OF MOORPARK
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Outstanding General Bonded Debt
Fiscal Year General Tax Percent of
Ended Obligation Allocation Assessed Per
June 30 Bonds Bonds' Total Value 2 Capita
2005 $ - $ 19,300,000 $ 19,300,000 0.5 % 537
2006 - 18,880,000 18,880,000 0.4 % 527
2007 - 30,135,000 30,135,000 0.6% 826
2008 - 29,680,000 29,680,000 0.5 % 803
2009 - 29,185,000 29,185,000 0.5 % 787
2010 - 28,710,000 28,710,000 0.5% 764
2011 - 28,155,000 28,155,000 0.5 % 811
2012 -
- - % -
2013 -
- - % -
2014 - - - -% -
General bonded debt is debt payable with governmental fund resources and general
obligation bonds recorded in enterprise funds(of which,the City has none).
1 Tax Allocation Bonds are the debt of the Successor Agency and not a part of the City.
Please read NOTE 14, pages 62-65.
2 Assessed value has been used because the actual value of taxable property is not
readily available in the State of California.
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176
CITY OF MOORPARK
Direct and Overlapping Debt
City Assessed Valuation 2013-14 $ 4,883,679.669
Redevelopment Agency Incremental Valuation 689,137,423
Adjusted Assessed Valuation $ 4,194,542,246
Estimated
Share of
Percentage Debt as of Overlapping
Applicable 6/30/2013 Debt
Direct and Overlapping Tax and Assessment Debt:
Metropolitan Water District 0.224% $ 132,275,000 $ 296,296
Ventura Community College District 4.524% 300,628,714 13,600,443
Conejo Valley Unified School District 0.017% 30,791,093 5.234
Moorpark Unified School District 93.183% 59,069,983 55,043,182
City of Moorpark Community Facilities District No.97-1 100.000% 5,235,000 5,235,000
City of Moorpark Community Facilities District No.2004-1 100.000% 19,625,000 19,625.000
City of Moorpark 1915 Act Bonds 100.000% 995,000 995,000
Total Direct and Overlapping Tax 8 Assessment Debt $ 548,619,790 $ 94,800,156
Overlapping General Fund Obligation Debt:
Ventura County General Fund Obligations 4.523% $ 398,360,000 $ 18,017,823
Ventura County Superintendent of Schools COPs 4.523% 11,160,000 504,767
Moorpark Unified School District COPs 93.183% 6,320,000 5,889,166
Total Overlapping General Fund Obligation Debt $ 415,840,000 $ 24,411,755
Overlapping Tax Increment Debt(Successor Agency): 100.000% $ 26,335,000 $ 26,335,000
Combined Total Debt* $ 990,794,790 $ 145,546,911
Total direct and overlapping debt $ 145,546,911
Notes:
*Excludes tax and revenue anticipation notes,revenue,mortgage revenue
and tax allocation bonds and non-bonded capital lease obligations.
The direct and overlapping bonded debt above is not the Citys obligation
Source: California Municipal Statistics,Inc. The overlapping district's assessed valuation located within the City is
divided by the total assessed valuation of the overlapping district. That percentage is multiplied by the total debt
outstanding for the overlapping district resulting in the Citys share of debt.
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177
CITY OF MOORPARK
Legal Debt Margin Information
Last Ten Fiscal Years
2005 2006 2007 2008 2009
Assessed valuation $3,231,418,940 $3,721,591,791 $4,157,360,033 $4,558,597,806 $4,700,305,496
Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 807,854,735 930,397,948 1,039,340,008 1,139,649,452 1,175,076,374
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 121,178,210 139,559,692 155,901,001 170,947,418 176,261,456
Total net debt applicable to limit: - - - - -
Legaldebtmargin $ 121,178,210 $ 139,559,692 $ 155,901,001 $ 170,947,418 $ 176,261,456
Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0%
The Government Code 2227 of the State of California provides for a legal debt limit of 15%of gross assessed valuation.
However,this provision was enacted when assessed valuation was based upon 25%of market value. Effective with the
81-82 fiscal year,each parcel is now assessed at 100%of market value(as of the most recent change in ownership for
that parcel). The computations shown above reflect a conversion of assessed valuation date for each fiscal year from
the current full valuation perspective to the 25%level that was in effect at the time that the legal debt margin was enacted
by the State of California for local governments located within the state.
Source: City Finance Department
Ventura County Tax Assessor's Office
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178
CITY OF MOORPARK
Legal Debt Margin Information
Last Ten Fiscal Years
2010 2011 2012 2013 2014
Assessed valuation $4,619,910,655 $4,659,133,835 $4,662,536,870 $4,596,277,650 $4.718,569,672
Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,154,977,664 1,164,783,459 1,165,634,218 1.149,069,413 1,179,642,418
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 173,246,650 174,717,519 174,845,133 172,360,412 176,946,363
Total net debt applicable to limit: - - - - -
Legal debt margin $ 173,246,650 $ 174,717,519 $ 174,845,133 $ 172,360,412 $ 176,946,363
Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0%
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179
CITY OF MOORPARK
Pledged-Revenue Coverage
Last Ten Fiscal Years
Fiscal Year Tax Allocation Bonds
Ended Tax Debt Service
June 30 Increment Principal Interest Coverage
2005 $ 3,860,624 $ 405,000 $ 959,942 2.83
2006 5,487,272 420,000 944,281 4.02
2007 6,306,385 440,000 1,085,040 4.14
2008 6,858,882 455,000 909,906 5.03
2009 7,010,760 475,000 1,397,922 3.74
2010 6,842,837 495,000 1,376,088 3.66
2011 6,716,136 555,000 1,350,874 3.52
2012 - - - n/a
2013 - - - n/a
2014 - - - n/a
Note
The Moorpark Redevelopment Agency issued$9,860,000 of tax allocation bonds in 1999,
$11,625,000 in 2001, and$11,695,000 in 2006.
Tax Allocation Bonds are the debt of the Successor Agency and not a part of the City.
Please read Note 14 of the Financial Statements.
Details regarding Moorpark Redevelopment Agency outstanding debt can be
found in the notes to the financial statements. Operating expenses do not include interest
or depreciation expenses.
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180
CITY OF MOORPARK
Demographic and Economic Statistics
Last Ten Calendar Years
Household Median
Calendar Income Household Unemployment
Year Population (in thousands) Income Rate
2005 35,933 $ 3,039,105 $ 84,577 5.4%
2006 35,836 3,050,432 85,122 4.4 %
2007 36,480 3,179,341 87,153 4.7 %
2008 36,971 3,526,775 95,393 5.7 %
2009 37,086 3,508,076 94,593 10.3%
2010 37,576 3,565,248 94,881 10.6 %
2011 34,710 3,385,509 97,537 10.0 %
2012 34,826 3,150,987. 90,478 8.7%
2013 34,904 3,494,030 100,104 6.4 %
2014 35,172 3,602,000 102,411 6.2 %
Sources: California State Department of Finance
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181
CITY OF MOORPARK
Principal Employers
Current and Ten Calendar Years Ago
2014
Percent of
Number of Total
Employer Employees Employment
PennyMac 1,117 6.24%
Moorpark Unified School District 841 4.70%
Moorpark College 627 3.50%
Pentair Water Pool and Spa 530 2.96%
Kavlico 390 2.18%
Benchmark Electronics 275 1.54%
Target 170 0.95%
Kretek International 110 0.61%
Ensign-Bickford Aerospace 126 0.70%
Test Equity 121 0.68%
'Total Employment"as used above represents the total employment of all employers located within
City limits.
The City does not present 2004 information because date for that year was not available.
Source: Chamber of Commerce
City-data.com
Bureau of Labor Statistics
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182
CITY OF MOORPARK
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Function 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General government 32 31 30 26 26 26 27 28 27 27
Public safety(crossing guards) 4 7 7 7 6 5 5 3 3 3
Public services 17 17 26 22 22 20 16 18 19 19
Parks and recreation 38 41 49 54 56 55 54 51 58 75
Total 91 96 112 109 110 106 102 100 107 124
Public safety' 31 31 42 42 38 38 40 39 40 40
Police and fire services were provided by the County.
Fire= 18 and police=22
Source: City of Moorpark, Finance department
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183
CITY OF MOORPARK
Operating Indicators
by Function
Last Ten Fiscal Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Police:(A)
Arrests 1,388 1,653 1,890 1,732 1,412 2,207 1,266 1,158 1,120 1,148
Parking citations issued 3,706 2,890 4,160 2,860 3,254 4,969 4,887 5,704 5,129 2,736
Fire:(B)
Number of"prime"emergency calls 1,308 1,329 1,351 1,362 1,100 1,945 1,707 2,174 1,851 1,835
Business Inspections* 125 125 123 130 143 115 196 196 132 500
Public works:(C)
Street resurfacing(miles) 0.1 - 30.0 3.8 - 5.0 2.0 - 4.5 -
Parks and recreation:(D)
Number of recreation classes 364 338 479 378 265 419 325 308 300 265
Number of facility rentals 491 338 180 210 186 230 277 118 226 103
Prime calls and business inspections are for County of Ventura,Fire department station#42 •
In November 2001,all business occupancies less than 10,000 sq.feet became eligible for self inspection program.
Source:City of Moorpark
(A)Provided by Moorpark Police Department.;
(B)Ventura County Fire Dept.;
(C)Moorpark Public Works Dept.;-every six years,the City plans to resurface its streets(total street miles=220)
(D)Arroyo Vista Recreation Dept.;
Active Adult Center,
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184
CITY OF MOORPARK
Capital Asset Statistics
by Function
Last Ten Fiscal Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Fire:
Fire stations 2 2 2 2 2 2 2 2 2 2
Public works:
Streets(miles) 75 75 75 78 79 79 79 79 79 79
Streetlights 2,325 2,347 2,497 2,510 2,518 2,518 2,620 2,620 2,620 2,620
Traffic signals 17 17 17 20 20 20 21 21 21 21
Parks and recreation:
Parks 15 16 16 16 17 18 18 18 18 18
Community centers 2 2 2 2 2 2 2 2 2 2
Of the streetlights,2,612 are owned by Edison and 8 are owned by the City
Source:City of Moorpark
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186
Attachment 2
RA ROGERS,ANDERSON, MALODY&SCOTT, LLP
M ^ CERTIFIED PUBLIC ACCOUNTANTS,SINCE 1948
735 E.Carnegie Dr.Suite 100
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
To the Honorable Mayor and City Council
PARTNERS City of Moorpark
Brenda L. Odle,CPA,MST Moorpark, California
Terry P.Shea, CPA
Kirk A.Franks.CPA
Scott W. Manno,CPA.CGMA
Leena Shanbhag.CPA.MST,CGMA INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
Jay H.Zercher,CPA(Partner Emeritus) FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
Phillip H.Waller,CPA(Partner Emeritus) BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
MANAGERS/STAFF
Bradferd A.Welebir,CPA,MBA
Jenny Liu,CPA,MST We have audited, in accordance with the auditing standards generally accepted
Seong-Hyea Lee.CPA.MBA
Charles De Simoni,CPA in the United States of America and the standards applicable to financial audits
Yiann Fang.CPA contained in Government Auditing Standards issued by the Comptroller General
Nathan Statham,CPA.MBA of the United States, the financial statements of the governmental activities, each
Brigitta Bartha.CPA major fund, and the aggregate remaining fund information of the City of
Gardenya Duran.CPA Moorpark, California (City) as of and for the year ended June 30, 2014, and the
Juan Romero,CPA related notes to the financial statements, which collectively comprise the City's
Ivan Gonzales.CPA.MSA
Brianna Pascoe,CPA basic financial statements, and have issued our report thereon dated January 21,
2015.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered
the City's internal control over financial reporting (internal control) to determine
the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City's internal control,
Accordingly, we do not express an opinion on the effectiveness of the City's
internal control.
A deficiency in internal control exists when the design or operation of a control
does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, misstatements on a
MEMBERS timely basis. A material weakness is a deficiency, or a combination of
American Institute of deficiencies, in internal control, such that there is a reasonable possibility that a
Certified Public Accountants material misstatement of the entity's financial statements will not be prevented, or
detected and corrected on a timely basis. A significant deficiency is a deficiency,
PCPS The AICPA Alliance
for CPA Firmsor a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with
Governmental Audit governance.
Quality Center
California Society of
Certified Public Accountants
STABILITY ACCURACY. TRUST. 1 8 7
Honorable Mayor and City Council Page 2
City of Moorpark
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or,
significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements, noncompliance with which could have a direct and material effect on the determination of
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 or other matters that are required to be reported under Government.Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
/� ( .ntleuoa_tf.lotly t So7r LLP
San Bernardino, California
January 21, 2015
188
Attachment 3
RA ROGERS, ANDERSON, MALODY&SCOTT, LLP
MS CERTIFIED PUBLIC ACCOUNTANTS,SINCE 1948
735 E.Carnegie Dr.Suite 100
San Bernardino,CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net To the Honorable City Council
City of Moorpark, California
PARTNERS
Brenda L.Odle,CPA,MST INDEPENDENT ACCOUNTANT'S REPORT ON AGREED-UPON
Terry P.Shea,CPA PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
Kirk A.Franks,CPA
Scott W.Manno,CPA,CGMA
Leena Shanbhag,CPA,MST,CGMA
Jay H.Zercher,CPA(Partner Emeritus) We have performed the procedures enumerated below to the accompanying
Phillip H.Waller,CPA(Partner Ementus)Appropriations Limit worksheet of the City of Moorpark, California (City), for
the year ended June 30, 2014. These procedures, which were agreed to by
MANAGERS/STAFF the City and the League of California Cities (as presented in the publication
Bradferd A.Welebir,CPA,MBA entitled Agreed-upon Procedures Applied to the Appropriations Limitation
Jenny Liu,CPA,MST Prescribed by Article X1118 of the California Constitution), were performed
Seong-Hyea Lee,CPA,MBA
De Simoni,CPA solelymeeting to assist the Cityin the requirements of Section 1.5 of Article
Charles
Yiann Fang.CPA XIIIB of the California Constitution. The City's management is responsible
Nathan Statham,CPA,MBA for the Appropriations Limit worksheet. This agreed-upon procedures
Brigitta Bartha,CPA engagement was conducted in accordance with attestation standards
Gardenya Duran,CPA established by the American Institute of Certified Public Accountants. The
Juan Romero,CPA sufficiencyof theproceduresisle) theof those parties
Ivan Gonzales,CPA,MSA solely responsibility
Brianna Pascoe,CPA specified in this report. Consequently, we make no representation regarding
the sufficiency of the procedures described below either for the purpose for
which this report has been requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained the completed worksheets and compared the limit and
annual adjustment factors included in those worksheets to the limit and
annual adjustment factors that were adopted by resolution of the City
Council. We also compared the population and inflation options included
in the aforementioned documents to those that were selected by a
recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit worksheet, we added last
MEMBERS year's limit to total adjustments and agreed the resulting amount to this
American Institute of year's limit.
Certified Public Accountants
PCPS The AICPA Alliance Finding: No exceptions were noted as a result of our procedures.
(or CPA Firms
Governmental Audit 3. We agreed the current year information presented in the accompanying
Quality Center Appropriations Limit worksheet to the other documents referenced in #1
California Society of above.
Certified Public Accountants
Finding: No exceptions were noted as a result of our procedures.
STABILITY. ACCURACY. TRUST. 1 8 9
Honorable City Council Page 2
City of Moorpark, California
4. We agreed the prior year appropriations limit presented in the accompanying Appropriations
Limit worksheet to the prior year appropriations limit adopted by the City Council during the
prior year.
Finding: No exceptions were noted as a result of our procedures.
We were not engaged to, and did not, perform an examination, the objective of which would be
the expression of an opinion on the accompanying Appropriations Limit worksheet. Accordingly,
we do not express such an opinion. Had we performed additional procedures, other matters
might have come to our attention that would have been reported to you. No procedures have
been performed with respect to the determination of the appropriation limit for the base year, as
defined by the League publication entitled Article XIIIB of the California Constitution.
This report is intended solely for the use of the City Council and management of the City and is
not intended to be and should not be used by anyone other than these specified parties.
However, this report is a matter of public record and its distribution is not limited.
/0,„,4) adank' that/ t So7r LLP
January 21, 2015
190
CITY OF MOORPARK
APPROPRIATIONS LIMIT COMPUTATION
2013 -2014
2013- 2014
Per Capita Personal Income Change 5.12%
Population Change
City Population Growth 0.73%
CPI Change Converted to a Ratio 1.0512
Population Change Converted to a Ratio 1.0073
Calculation of Growth Factor 1.0589
2012- 2013 Limit $ 27,972,590
2013 -2014 Appropriations Limit $ 29,619,441
191
Attachment 4
RA ROGERS,ANDERSON, MALODY&SCOTT, LLP
MS CERTIFIED PUBLIC ACCOUNTANTS,SINCE 1948
735 E.Carnegie Dr.Suite 100
San Bernardino,CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Brenda L.Odle,CPA.MST To the Honorable City Council
Terry P.Shea.CPA City of Moorpark
Kirk A.Franks,CPA
Scott W.Manno,CPA,CGMA
Leena Shanbhag,CPA.MST.CGMA
Jay H.Zercher,CPA(Partner Emeritus) We have audited the financial statements of the governmental activities, each major
Phillip H.Waller,CPA(Partner Emeritus) fund, and the aggregate remaining fund information of City of Moorpark(the City) for
the year ended June 30, 2014. Professional standards require that we provide you
MANAGERS/STAFF with information about our responsibilities under generally accepted auditing
Bradferd A.Welebir,CPA,MBA standards, as well as certain information related to the planned scope and timing of
Jenny Liu,CPA,MST our audit. We have communicated such information in our letter to you dated June
Seong-Hyea Lee,CPA.MBA 23, 2014. Professional standards also require that we communicate to you the
Charles De Simon',CPA following information related to our audit.
Yiann Fang,CPA
Nathan Statham,CPA.MBA
Brigitta Bartha.CPA
Gardenya Duran,CPA Significant Audit Findings
Juan Romero,CPA
Ivan Gonzales,CPA,MSA
Brianna Pascoe.CPA
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting
policies. The significant accounting policies used by the City are described in Note 1
to the financial statements. As described in Note 15 to the financial statements, the
City changed accounting policies related to treatment of debt issuance costs by
adopting Statement of Governmental Accounting Standards (GASB Statement) No.
65, Items Previously Reported as Assets and Liabilities, in 2014. Accordingly, the
cumulative effect of the accounting change as of the beginning of the year is
reported in the Statement of Changes in Fiduciary Net Position — Private Purpose
Trust Fund. We noted no transactions entered into by the City during the year for
which there is a lack of authoritative guidance or consensus. All significant
transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by
management and are based on management's knowledge and experience about
past and current events and assumptions about future events. Certain accounting
MEMBERS estimates are particularly sensitive because of their significance to the financial
American Institute of
Certified Public Accountants statements and because of the possibility that future events affecting them may
differ significantly from those expected. The most sensitive estimates affecting the
PCPS The AICPA Alliance City's financial statements were:
for CPA Firms
Governmental Audit Management's estimate of the liability for pensions and other post
Quality Center employment benefits is based on actuarial reports provided by an
California Society of independent actuarial. We evaluated the key factors and
Certified Public Accountants assumptions used to develop the estimate for pension and other
post employment benefits in determining that it is reasonable in
relation to the financial statements taken as a whole.
STABILITY. ACCURACY. TRUST. 1 9 2
Honorable City Council
City of Moorpark Page 2
Management's estimate of the depreciation expense is based on the allocation of capital assets
costs over the estimated useful life of depreciable capital assets. The actual life of any single
asset may vary significantly based on a variety of unknown factors, such as defects in the quality
of manufacturing or materials used in the asset. Assets may last longer or shorter than
anticipated resulting in disproportionate allocation of expense to various accounting periods. We
evaluated the useful lives employed by the City to determine if the lives utilized appeared
reasonable based on the asset classes in service in determining that it is reasonable in relation to
the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. The most sensitive disclosure affecting the financial statements was:
The disclosure of pension and other post employment benefits in the Notes to the financial
statements is based on actuarial assumptions and estimates. The City is part of a cost-sharing
risk pool for retirement benefits and actual future liabilities will vary from disclosed estimates.
The financial statement disclosures are neutral, consistent,and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements. In addition, none of the misstatements
detected as a result of audit procedures and corrected by management were material, either individually
or in the aggregate, to each opinion unit's financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor's report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated January 21, 2015.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application
of an accounting principle to the governmental unit's financial statements or a determination of the type of
auditor's opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
193
Honorable City Council
City of Moorpark Page 3
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the governmental unit's auditors. However,
these discussions occurred in the normal course of our professional relationship and our responses were
not a condition to our retention.
Other Matters
With respect to the supplementary information accompanying the financial statements, we made certain
inquiries of management and evaluated the form, content, and methods of preparing the information to
determine that the information complies with accounting principles generally accepted in the United
States of America, the method of preparing it has not.changed from the prior period, and the information
is appropriate and complete in relation to our audit of the financial statements. We compared and
reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
This information is intended solely for the use of the City's Council and management of the City of
Moorpark and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
�o9rneJ Ll'ndzweat dual ly ? Sony LLP
San Bernardino, California
January 21, 2015
194
Attachment 5
CITY OF MOORPARK, CALIFORNIA
HOUSING SUCCESSOR FUND
AUDITED FINANCIAL STATEMENTS
JUNE 30, 2014
195
City of Moorpark
Housing Successor Fund
Financial Statements
June 30, 2014
Table of Contents
PAGE
INDEPENDENT AUDITOR'S REPORT 1
FINANCIAL STATEMENTS
Fund Financial Statements
Balance Sheet- Governmental Fund 3
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Fund 4
Notes to the Financial Statements 5
196
RA ROGERS, ANDERSON, MALODY&SCOTT, LLP
M ^ CERTIFIED PUBLIC ACCOUNTANTS,SINCE 1948
735 E.Carnegie Dr.Suite 100
San Bernardino,CA 92408
909 889 0871 T To the City Council
909 889 5361 F
ramscpa.ner City of Moorpark, California
INDEPENDENT AUDITOR'S REPORT
PARTNERS
Brenda L.Odle.CPA.MST Report on the Financial Statements
Terry P.Shea.CPA
Kirk A Franks,CPA We have audited the accompanying financial statements of the Housing Successor
Scott W.Manno,CPA.CGMA Fund of the City of Moorpark (Housing Successor), California, as of and for the
Leena Shanbhag.CPA.MST,CGMA
year ended June 30, 2014, and the related notes to the financial statements, as
Jay H.Zercher,CPA(Partner Emeritus)
Phillip H Waller.CPA(Partner Emeritus) listed in the table of contents.
MANAGERS/STAFF Management's Responsibility for the Financial Statements
Bradferd A.Welebir,CPA.MBA
Jenny Liu.CPA,MST Management is responsible for the preparation and fair presentation of these
Scong-Hyea Lee,CPA,MBA financial statements in accordance with accounting principles generally accepted in
Charles De Simoni.CPA the United States of America; this includes the design, implementation, and
Yiann Fang.CPA maintenance of internal control relevant to the preparation and fair presentation of
Nathan Statham.CPA.MBA financial statements that are free from material misstatement, whether due to fraud
Brigitta Bartha.CPA
Gardenya Duran,CPA or error.
Juan Romero,CPA
Ivan Gonzales,CPA.MSA Auditor's Responsibility
Brianna Pascoe.CPA
Our responsibility is to express an opinion on these 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 financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements. The procedures selected
depend on the auditor's judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the
entity's preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the
MEMBERS purpose of expressing an opinion on the effectiveness of the entity's internal
American Institute of control. Accordingly, we express no such opinion. An audit also includes evaluating
Certified Public Accountants the appropriateness of accounting policies used and the reasonableness of
PCPS The AICPA Alliance significant accounting estimates made by management, as well as evaluating the
for CPA Firms overall presentation of the financial statements.
Governmental Audit
Quality Center
California Society of
Certified Public Accountants
- 1 -
STABILITY. ACCURACY. TRUST. 1 9 7
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the Housing Successor Fund of the City of Moorpark, California, as of
June 30, 2014, and the changes in financial position thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Emphasis of Matters
Change in Accounting Principle
As discussed in Note 1 of the financial statements, the Housing Successor Fund of the City of Moorpark,
California, adopted the provisions of GASB Statement No. 65, Items Previously Reported as Assets and
Liabilities. Our opinion is not modified with respect to this matter.
Housing Successor Fund Financial Statements
As discussed in Note 1, the financial statements present only the Housing Successor Fund and do not
purport to, and do not present fairly, the financial position of the City of Moorpark, California, as of June
30, 2014, and the changes in its financial position for the year then ended in accordance with accounting
principles generally accepted in the United States of America. Our opinion is not modified with respect to
this matter.
Other reporting required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 21,
2015, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering City's internal control over financial
reporting and mpcompliance.
giueJ U.�itLateoa (/Qtly t o,r LLP
San Bernardino, California
January 21, 2015
- 2 -
198
City of Moorpark
Housing Successor Fund
Balance Sheet
Governmental Fund
June 30,2014
Housing
Successor
Fund
ASSETS
Cash and investments $ 233,448
Notes and loans receivable 1,953,642
Property held for resale &development 7,429,564
Total assets $ 9,616,654
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE
Liabilities:
Unavailable revenue $ 11,750
Total liabilities 11,750
Deferred inflows of resources:
Deferred loans 1,953,060
Fund balance:
Nonspendable 7,429,564
Restricted 222,280
Total fund balance 7,651,844
Total liabilities, deferred inflows of
resources and fund balance $ 9,616,654
The accompanying notes are an integral part of these financial statements.
- 3-
199
City of Moorpark
Housing Successor Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Governmental Fund
For the Year Ended June 30, 2014
Housing
Successor
Fund
REVENUES
Use of money and property $ 3,123
Charges for services 4,950
Total revenues 8,073
EXPENDITURES
Current:
General government 459
Total expenditures 459
Net change in fund balance 7,614
Fund balance, beginning of year 7,644,230
Fund balance, end of year $ 7,651,844
The accompanying notes are an integral part of these financial statements.
-4 -
200
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2014
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Moorpark (City) conform to accounting principles generally
accepted in the United States of America as applicable to governments. The Governmental
Accounting Standards Board (GASB) is the accepted standard setting body for governmental
accounting and financial reporting principles. The following is a summary of the significant
accounting policies of the City of Moorpark as they pertain to the Housing Successor Fund. Only
the Housing Successor Fund information is included herein and these financial statements,
therefore, do not purport to represent the financial position or results of operations of the City of
Moorpark, California.
A) Accounting and Reporting Policies
The City has conformed to the pronouncements of the GASB, which are the primary
authoritative statements of the accounting principles generally accepted in the United States
of America applicable to state and local governments. In accordance with GASB Statement
No. 20, the City applies all applicable Financial Accounting Standards Board (FASB)
pronouncements issued on or before November 30, 1989, unless any such pronouncements
contradict GASB pronouncements.
B) Basis of Accounting
These fund financial statements are reported using the modified-accrual basis of accounting.
Under the modified-accrual basis of accounting, revenues are recognized when susceptible
to accrual (i.e. when they are both measurable and available). "Measurable" means the
amount of the transaction can be determined, and "available" means collectible within the
current period or soon enough thereafter (within 60 days) to be used to pay liabilities of the
current period. Expenditures are generally recognized in the accounting period in which the
liability is incurred, if measurable.
In Fiscal Year 2013, the City implemented GASBS No. 63, Financial Reporting of Deferred
Outflows of Resources, Deferred Inflows of Resources, and Net Position. This statement is
designed to improve financial reporting by standardizing the presentation of deferred outflows
of resources and deferred inflows of resources and their effects on the government's net
position. Deferred outflows of resources are transactions that result in the consumption of
assets in one period that are applicable to future periods and are not considered assets as
described by the statement. Deferred outflows of resources are required to be presented
separately after assets on the statement of net position.
Deferred inflows of resources are transactions that result in the acquisition of assets in one
period that are applicable to future periods and are not considered to be liabilities as
described by the statement. Deferred inflows of resources are required to be presented
separately after liabilities on the statement of net position: The implementation of this
statement had no impact on the Housing Successor Fund's financial statements.
- 5-
201
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2014
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C) Use of estimates in the preparation of financial statements
The financial statements have been prepared in accordance with generally accepted
accounting principles and necessarily include amounts based on estimates and assumptions
by management.Actual results could differ from those amounts.
D) Property Held for Resale/Development
Property held for resale and development in the Housing Successor Fund represents land
and buildings purchased by the former Redevelopment Agency and transferred to the City as
housing assets with Dissolution on February 1, 2012. Such property is valued at the lower of
cost or estimated net realizable value and has been offset by nonspendable or restricted fund
balances to indicate that these assets constitute future projects and are restricted or not
available spendable resources. The balance at June 30,2014 was$7,429,564.
E) Unavailable Revenue
Unavailable revenue is recorded for monies collected in advance that have not been earned.
In the fund financial statements, revenue is also unavailable when the availability criteria
have not been met. As of June 30, 2014, unavailable revenue in the Governmental Funds
amounted to$11,750.
F) Implementation of New Accounting Principle
Effective July 1, 2013, the City adopted the provisions of GASB Statement No. 65, Items
Previously Reported as Assets and Liabilities. GASB 65 establishes accounting and financial
reporting standards that reclassify, as deferred outflows of resources or deferred inflows of
resources, certain items that were previously reported as assets and liabilities and
recognizes, as outflows of resources or inflows of resources, certain items that were
previously reported as assets and liabilities. The Housing Successor's financial statements
contain elements that meet the definition of deferred inflow of resources. The amount of
deferred inflows of resources is reported in the Balance Sheet as follows:
Deferred loans $ 1,953,060
-6 -
202
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2014
2) CASH AND INVESTMENTS
Cash and investments at June 30, 2014, consisted of the following:
Amount
Pooled cash and investments $ 233,448
The Housing Successor follows the practice of pooling cash and investments with the City of
Moorpark for all funds except for funds required to be held by outside fiscal agents under the
provisions of bond indentures.
For more information on the City's cash and investments as of June 30, 2014, please see the
City of Moorpark's audited financial statements.
3) NOTES AND LOANS RECEIVABLE
Notes and loans receivable activity for the year ended June 30, 2014, is as follows:
Beginning Ending
Balance Increases Decreases Balance
Notes receivable
Moorpark 20,LP $ 1254,933 $ 684,994 $ - $ 1,939,927
Moorpark 20,LP 640,000 15,000 (655,000) -
Total notes receivable 1,894,933 699,994 (655,000) 1,939,927
Loans receivable
Rehabilitation 13,715 - - 13,715
Total loans receivable 13,715 - - 13,715
Total notes and loans receivable $ 1,908,648 $ 699,994 $ (655,000) $ 1,953,642
_ 7_
203
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2014
3) NOTES AND LOANS RECEIVABLE (continued)
A) Moorpark 20, LP Promissory Notes
On October 29, 2010, the former Redevelopment Agency signed the Disposition and
Development Agreement (DDA) with the Area Housing Authority of the County of Ventura
(AHA) and Moorpark 20, Limited Partnership (M2OLP), consisting of AHA and Santa Barbara
Housing Assistance Corporation. The DDA provides for the construction of a 20-unit
affordable housing project (Project) on Former Redevelopment Agency-owned property
located at 396, 406 and 496 Charles Street (Site). During the tax credit application, the sale
price of Site was determined to be $1,176,500 to show more local funds into the Project. On
the same date, the former Redevelopment Agency executed a $1,176,500 loan agreement
with M2OLP to purchase the Site from the former Redevelopment Agency. The loan will
accrue interest at the rate of 2.5% per annum and have a term of 55 years.
One annual payment is to be be made to the Agency by M2OLP from residual receipts after
the November 2, 2010 Note for$600,000 has been paid off. This loan is subordinate in right
of payment to First Mortgage Note held by Bank of America, N.A. and is secured by Deed of
Trust and Security Agreement. The principal and accrued interest outstanding on this note at
June 30, 2014 are $1,176,500 and $108,427 respectively for a total of$1,284,927.
On November 2, 2010 the former Redevelopment Agency entered into a $600,000 loan
agreement with M2OLP to complete the construction of the Project. As of June 30, 2012,
M2OLP has drawn down the entire amount. The term of the loan is 30 years with a fixed
interest rate of 2.5%. One annual payment will be made to the former Redevelopment
Agency by M2OLP equal to 75% of available residual receipts. This note is subordinate in
right of payment to the First Mortgage Loan payable to Bank of America, N.A. and is secured
by Deed of Trust and Security Agreement. The principal and accrued interest outstanding on
this note at June 30, 2014 are$600,000 and $55,000 respectively for a total of$655,000.
Both of the Moorpark 20, LP promissory Notes were transferred to the Housing Successor
Fund as part of the former Redevelopment Agency Dissolution on February 1, 2012.
B) Rehabilitation Loans
The Housing Successor Fund operates a rehabilitation loan program for the renovation of low
and moderate income housing. The total balance outstanding at June 30, 2014, was
$13,715.
- 8-
204
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2014
4) PROPERTY HELD FOR RESALE AND DEVELOPMENT
The Housing Successor Fund owns several interests in real property held for resale and
development through the City of Moorpark that were acquired by the former Redevelopment
Agency prior to February 1, 2012 and transferred to the Housing Successor Fund as part of the
Dissolution of the former Redevelopment Agency on February 1, 2012. The value of these
properties is shown in the Balance Sheet as follows:
June 30, 2014
Land held for resale and development $ 7,429,564
5) CLASSIFICATION OF FUND BALANCE
The Housing Successor Fund follows the City's implemented GASB Statement No. 54, Fund
Balance Reporting and Governmental Fund Type Definitions as of June 30, 2011. Fund
balances in governmental funds are reported in classifications that comprise a hierarchy
based primarily on the extent to which the Housing Successor is bound to honor constraints
on the specific purposes for which amounts in those funds can be spent. The Housing
Successor Fund considers restricted fund balance to have been spent first when an
expenditure is incurred for purposes for which both restricted and unrestricted fund balance
is available. Similarly, when an expenditure is incurred for purposes for which amounts in any
of the unrestricted classifications of fund balance could be used, the Housing Successor
considers committed amounts to be reduced first, followed by assigned amounts and then
unassigned amounts. A City of Moorpark's Council Ordinance or Resolution is the formal
action that would effectively commit fund balances for a particular purpose.
The following classifications describe the relative strength of the spending constraints placed
on the purposes for which resources can be used:
Nonspendable Fund Balance - Amounts that cannot be spent either because they are in
nonspendable form or are required to be maintained intact.
Restricted Fund Balance - Amounts that are constrained to specific purposes by state or
federal laws, or externally imposed conditions by grantors or creditors.
Committed Fund Balance - Amounts that may be specified by the City Council by resolution
to formally commit part of the Housing Successor Fund's fund balances or future revenues
for a specific purpose(s) or program. To change or repeal any such commitment will require
an additional formal City Council's action utilizing the same type of action that was originally
used.
- 9-
205
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2014
5) CLASSIFICATION OF FUND BALANCE(continued)
Assigned Fund Balance - Amounts that are constrained by the Council's intent to use
specified financial resources for specific purposes, but are neither restricted nor committed. It
is the policy of the City Council that assignment of fund balances must be approved by the
Council prior to the fiscal year end.
Unassigned Fund Balance- These are either residual positive net resources of fund balance
in excess of what can properly be classified in one of the other four categories, or negative
balances.
The Housing Successor Fund's governmental fund balances at June 30, 2014, are presented
below:
Housing
Successor
Fund
Nonspendable:
Property held for resale&development $ 7,429,564
Restricted for:
Low and moderate income housing 222,280
$ 7,651,844
10 -
206
Attachment 6
Housing Successor Fund of the City of Moorpark
Addendum to the Annual Progress Report
For Fiscal Year Ended June 30, 2014
207
RA ROGERS, ANDERSON, MALODY&SCOTT, LLP
MS CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
735 E.Carnegie Dr.Suite 100
San Bernardino,CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
To Management of the
Housing Successor of the City of Moorpark
PARTNERS Moorpark, California
Brenda L. Odle,CPA,MST
Terry P.Shea,CPA
Kirk A.Franks.CPA
Scott W. Manno,CPA.CGMA Independent Accountant's Compilation Report
Leena Shanbhag,CPA.MST,CGMA
Jay H.Zercher,CPA(Partner Emeritus)
Phillip H.Waller,CPA(Partner Emeritus) We have compiled the accompanying Addendum to the Annual Progress Report
("Addendum to the APR") of the Housing Successor of the City of Moorpark
MANAGERS/STAFF ("Housing Successor") as of June 30, 2014 and for the year then ended. We
Bradferd A.Welebir,CPA,MBA have not audited or reviewed the accompanying Addendum to the APR and,
Jenny Liu,CPA,MST accordingly, do not express an opinion or provide any assurance about whether
Seong-Hyea Lee,CPA.MBA
Charles De Simoni,CPA the Addendum to the APR is in accordance with the reporting provisions of the
Yiann Fang,CPA California Health & Safety Code Section 34176 as amended by Senate Bill 341
Nathan Statham,CPA,MBA (Chapter 796, Statutes of 2013, effective January 2014) ("SB 341").
Brigitta Bartha,CPA
Gardenya Duran,CPA Management of the Housing Successor is responsible for the preparation and fair
Juan Romero,CPA presentation of the Addendum to the APR in accordance with the reporting
Ivan Gonzales.CPA.MSA provisions of SB 341, and for designing, implementing, and maintaining internal
Brianna Pascoe,CPA control relevant to the preparation and fair presentation of the Addendum to the
APR.
Our responsibility is to conduct the compilation in accordance with Statements on
Standards for Accounting and Review Services issued by the American Institute
of Certified Public Accountants. The objective of a compilation is to assist
management in presenting information in the form of an Addendum to the APR
without undertaking to obtain or provide any assurance that there are no material
modifications that should be made to the Addendum to the APR.
The accompanying Addendum to the APR was prepared for the purpose of
complying with the reporting provisions of SB 341, and is not intended to be a
presentation of all compliance matters related to SB 341.
This report is intended solely for the information and use of management of the
Housing Successor of the City of Moorpark, and is not intended to be and should
not be used by anyone other than this specified party.
MEMBERS
American Institute of
Certified Public Accountants
PCPS The AICPA Alliance 4.0.51A4..) fic11 Ce"+O ILr0 tL/ t V C 07T ZAP
for CPA Firms
Governmental Audit January 21, 2015
Quality Center
San Bernardino, California
California Society of
Certified Public Accountants
STABILITY ACCURACY TRUST. 2 0 8
Housing Successor of the City of Moorpark
Addendum to the Annual Progress Report
For Fiscal Year Ended June 30, 2014
1) The amount deposited to the Low and Moderate Income Housing Asset Fund,
distinguishing any amounts deposited for items listed on the Recognized
Obligation Payment Schedule from other amounts deposited.
The Housing Successor Fund received $3,123 from use of money and property and
$4,950 from charges for services as of June 30, 2014. None of these amounts were
deposited for items listed on the Recognized Obligation Payment Schedule
2) A statement of the balance in the fund as of the close of the fiscal year,
distinguishing any amounts held for items listed on the Recognized Obligation
Payment Schedule from other amounts.
The balance in the Housing Successor Fund as of June 30, 2014 was$7,651,844, none
of which was held for items listed on the Recognized Obligation Payment Schedule.
3) A description of expenditures from the fund by category, including, but not limited
to, expenditures
a. for monitoring and preserving the long-term affordability of units subject to
affordability restrictions or covenants entered into by the redevelopment
agency or the housing successor and administering the activities
described in paragraphs (2) and (3) of subdivision (a),
The Housing Successor Fund's expenditures related to this category as of June
30, 2014 were$459 in administrative expenses.
b. for homeless prevention and rapid re-housing services for the development
of housing described in paragraph (2) of subdivision (a),and
The Housing Successor Fund had no expenditures related to homeless
prevention and rapid re-housing services as of June 30, 2014.
c. for the development of housing pursuant to paragraph (3) of subdivision
(a).
The Housing Successor Fund had no expenditures related to the development of
housing as of June 30, 2014.
4) As described in paragraph (1) of subdivision (a), the statutory value of real
property owned by the housing successor, the value of loans and grants
receivable, and the sum of these two amounts.
The statutory value of real property owned by the Housing Successor Fund as of June
30, 2014 was$7,429,564.
209
Addendum to the Annual For the Year Ended June 30, 2014
Progress Report Page 2
The value of loans and notes receivable in the Housing Successor Fund as of June
30, 2014 was $1,790,215.
The sum of the statutory value of real property and the value of loans and notes
receivable owned by the Housing Successor Fund adds up to $9,219,779.
5) A description of any transfers made pursuant to paragraph (2) of subdivision (c) in
the previous fiscal year and, if still unencumbered, in earlier fiscal years and a
description of and status update on any project for which transferred funds have
been or will be expended if that project has not yet been placed in service.
No transfers occurred pursuant to paragraph (2) of subdivision (c) in the previous fiscal
year or earlier fiscal years in the Housing Successor Fund.
6) A description of any project for which the housing successor receives or holds
property tax revenue pursuant to the Recognized Obligation Payment Schedule
and the status of that project.
The Housing Successor Fund received no such property tax revenue as of June 30,
2014.
7) For interests in real property acquired by the former redevelopment agency prior
to February 1, 2012, a status update on compliance with Section 33334.16. For
interests in real property acquired on or after February 1, 2012, a status update on
the project.
As of June 30, 2014, the Housing Successor Fund's real property interests were as
follows:
210
Addendum to the Annual For the Year Ended June 30, 2014
Progress Report Page 3
Pro Dasa' mon Year of Value Status on compliance
�� - Acquisition with 33330.16
Land,Regal Park Condo-1.15 acres 1992 $ 170,100 In Compliance
Land,W/Buildings-782 Moorpark Avenue-old Fire Station
(swaped with 285 Figh Street new Fire Station) 2000 110,737 In Compliance
Land,W/House-798 Moorpark Avenue(Public Works Office and
Parking Lot) 2001 221,320 In Compliance
Land,W/House-81 Charles 2004 339,491 In Corlphance
Land,W/House-81 Charles 2007 4,083 In Compliance
Land,765 Walnut Street 2007 451,492 In Compliance
Land,765 Walnut Street 2008 62,000 In Comphance
Land,250 E LA Avenue 2007 578,814 In Compliance
Land. 1095 Walnut Canyon 2007 10,500 In Compliance
Land, 1095 Walnut Canyon 2008 356,650 In Compliance
Land, 1113 Walnut Canyon 2007 10,470 In Compliance
Land,1113 Walnut Canyon 2008 386,915 In Compliance
Land,460 Charles Street 2007 13,050 In Compliance
Land.460 Charles Street 2008 436,855 In Compliance
Land,450 Charles Street 2008 470,531 In Compliance
Land,450 Charles Street 2009 40,507 In Compliance
Land,450 Charles Street 2009 11,112 In Compliance
Land, 1293 Walnut Canyon 2008 519.985 In Compliance
Land,1293 Walnut Canyon 2009 12,556 In Conphance
Land, 1331 Walnut Canyon 2008 387,640 In Compliance
Land. 1331 Walnut Canyon 2009 8,517 In Compliance
Land,484 Charles Street 2008 481,681 In Compliance
Land,484 Charles Street 2009 16,610 In Compliance
Land,w/House-1063 Walnut Canyon Road 2008 464,859 In Conplance
Land,w/House- 1063 Walnut Canyon Road 2009 9,675 In Compliance
Land,wt Rouse-1073 Walnut Canyon Road 2009 301,073 In Conphance
Land,w/House-1123 Walnut Canyon Road 2008 477,782 In Compliance
Land,w/House-1123 Walnut Canyon Road 2009 10,950 In Compliance
Land,w/House- 1083 Walnut Carryon Road 2010 703,202 In Compliance
Land,w/Rouse-1083 Walnut Canyon Road 2011 8,472 In Compliance
Land,w/House-112 First Street 2010 12,940 In Compliance
112 First Street,Demotion 2011 4,020 In Compliance
124 First Street 2010 334.974 In Compliance
$ 7,429,564
211
Addendum to the Annual For the Year Ended June 30, 2014
Progress Report Page 4
As of June 30, 2014, the Housing Successor Fund did not hold any property acquired
after February 1, 2012
8) A description of any outstanding obligations pursuant to Section 33413 that
remained to transfer to the housing successor on February 1, 2012, of the housing
successor's progress in meeting those obligations, and of the housing
successor's plans to meet unmet obligations. In addition, the housing successor
shall include in the report posted on its Internet Web site the implementation
plans of the former redevelopment agency.
As of June 30, 2014; there were no outstanding obligations pursuant to Section 33413
that remained to be transferred to the Housing Successor Fund on February 1, 2012.
9) The information required by subparagraph (B) of paragraph (3) of subdivision (a).
This item is not applicable to the Housing Successor until Fiscal Year Ended June 30,
2019.
10)The percentage of units of deed-restricted rental housing restricted to seniors and
assisted individually or jointly by the housing successor, its former
redevelopment agency, and its host jurisdiction within the previous 10 years in
relation to the aggregate number of units of deed-restricted rental housing
assisted individually or jointly by the housing successor, its former
redevelopment agency, and its host jurisdiction within the same time period.
As of June 30, 2014, the Housing Successor Fund had 0% of units of deed-restricted
rental housing restricted to seniors and assisted individually or jointly by the housing
Successor, its former redevelopment agency, and its host jurisdiction within the previous
10 years in relation to the aggregate number of units of deed-restricted rental housing
assisted individually or jointly by the housing successor, its former redevelopment
agency, and its host jurisdiction within the same time period.
11)The amount of any excess surplus, the amount of time that the successor agency
has had excess surplus, and the housing successor's plan for eliminating the
excess surplus.
The Housing Successor Fund did not have any excess surplus as of June 30, 2014 or at
any point during the fiscal year.
212