HomeMy WebLinkAboutAGENDA REPORT 2016 0120 CCSA REG ITEM 10E ITEM 1O.E.
cite(OF MOORPARK,CALIFORNIA
City Counoii Meeting
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MOORPARK CITY COUNCIL ACTION. d ��
AGENDA REPORT
BY: (,rulti-r...."
TO: The Honorable City Council
FROM: Ron Ahlers, Finance Director
DATE: January 5, 2016 (CC Meeting of January 20, 2016)
SUBJECT: Consider Annual Financial Statements and Other Audit Reports for
Fiscal Year Ended June 30, 2015
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 matters, 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, 2015 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, Malody & 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, 2015, the City received an
unqualified opinion. The City currently has five bond issues for which it is responsible
(two redevelopment bonds and three assessment district bonds). The bond proceeds
from these five 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,
2014. 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
January 5, 2016
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, 2015 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 (GASS)
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, 2015 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, 2015 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
January 5, 2016
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 $16 million was
reported for the fiscal year ended June 30, 2015 (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
29-74.
The Required Supplementary Information begins at page 75 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.gov
General Fund Financial Status
For fiscal year ended June 30, 2015, the General Fund unassigned fund balance totaled
$3 million, which equates to approximately 19% of operating expenses. The General
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Honorable City Council
January 5, 2016
Page 4
Fund had a surplus of $2,021,022 for this past year. Per Council policy the City
transferred $2,021,022 from the General Fund to the Special Projects Fund at June 30,
2015. 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 70-73 of the CAFR.
GASB 68 and the City's Retirement Plan
GASB 68, Accounting and Financial Reporting for Pensions, was implemented for the
fiscal year ending June 30, 2015. This is the first time the City has recorded the net
pension liability on the Statement of Net Position. There are three numbers on page 15
that are pension related: Deferred Outflow of Resources $4,505,847, Noncurrent
Liability Due in more than one year of $4,729,279 ~md Deferred Inflow of Resources
$1,536,866. These figures are broken down and explained in Note 7 (pages 49-58).
The simple fact is the City's liability for the pension plan is $4,430, 104 (page 54). This
does not include the $3.6 million contribution made in January 2015. The Deferred
Outflow of Resources mentioned above reflects the contribution of $3.6 million made in
, January 2015 plus normal contributions made during FY 2014-15.
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 $750,000 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, 2015.
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
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Honorable City Council
January 5, 2016
Page 5
the appropriations limit for the fiscal year ended June 30, 2015.
Independent Auditor's memo regarding significant audit matters
The independent auditors noted no findings for the audit process for the fiscal year
ended June 30, 2015.
Housing Successor Fund Audited Financial Statements
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
SB 341 requires this addendum report to be filed 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 matters, 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, 2015
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 iri 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 Matters
5. Housing Successor Fund Audited Financial Statements
6. Housing Successor Fund Addendum to the Annual Progress Report
258
CITY OF MOORPARK, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended June 30, 2015
Prepared By:
Ron Ahlers, Finance Director
lrmina Lumbad, Budget & Finance Manager
Attachment 1
259
City of Moorpark
Table of Contents
Year Ended June 30, 2015
I. INTRODUCTORY SECTION
Letter of Transmittal
Directory of City Officials
Organization Chart
Certificate of Achievement for Excellence in Financial Reporting
II. FINANCIAL SECTION
PAGE
vii
viii
ix
Independent Auditor's Report 1
Management's Discussion and 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 the Basic Financial Statements 29
Required Supplementary Information:
Required Supplementary Information -Budgetary Comparison Schedule -
Budget and Actual -General Fund 75
. Required Supplementary Information -Budgetary Comparison Schedule -
Budget and Actual -Street and Traffic Safety Special Revenue Fund 78
Required Supplementary Information -Budgetary Comparison Schedule -
Budget and Actual -Assessments Districts Special Revenue Fund 79
Required Supplementary Information -Budgetary Comparison Schedule -
Budget and Actual -Parks/Public Facilities Special Revenue Fund 80
Required Supplementary Information -Budgetary Comparison Schedule -
Budget and Actual -Los Angeles Area of Cont. Special Revenue Fund 81
Required Supplementary Information -Budgetary Comparison Schedule -
Budget and Actual -Low-Mod Housing Asset Special Revenue Fund 82
Required Supplementary Information -Budgetary Comparison Schedule -
Budget and Actual -Prop 1 B Local Streets and Roads Special Revenue Fund 83
Required Supplementary Information -Budgetary Comparison Schedule -
Budget and Actual -Community Development Special Revenue Fund 84
Required Supplementary Information -Budgetary Comparison Schedule -
Budget and Actual -Endowment -Special Revenue Fund 85
260
City of Moorpark
Table of Contents (continued)
Year Ended June 30, 2015
Required Supplementary Information -Continued:
Other Post-Employment Benefits -Schedule of Funding Progress
Schedule of the City's Proportionate Share of the Plan's Net Pension
Liability and Related Ratios as of the Measurement Date -Last 1 O Years
Schedule of Plan's Contributions -Last 10 years
Notes to the Required Supplementary Information
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
Non-Major Governmental Funds
Non-Major Governmental Funds -Combining Balance Sheet
Non-Major Governmental Funds -Combining Statement of Revenues,
Expenditures, and Changes in Fund Balance
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual:
Library Services Special Revenue Fund
Traffic Safety Special Revenue Fund
City Affordable Housing Special Revenue Fund
State Gas Tax Special Revenue Fund
Art in Public Places Special Revenue Fund
State and Federal Assistance Special Revenue Fund
Local Transportation Transit Special Revenue Fund
Solid Waste Special Revenue Fund.
City Hall Building Capital Projects Fund
Equipment Replacement Capital Projects Fund
Statement of Changes in Fiduciary Assets and Liabilities -Agency Funds
Ill. STATISTICAL SECTION
Net Position by Component -Last Ten Fi.seal Years
Changes in Net Position -Last Ten Fiscal Years
Fund Balances of Governmental Funds -Last Ten Fiscal Years
Changes in Fund Balances of Governmental Funds -Last Ten Fiscal Years
PAGE
86
87
88
89
90
91
93
99
105
106
107
108
109
110
111
112
113
114
115
116
118
120
122
261
City of Moorpark
Table of Contents (continued)
Year Ended June 30, 2015
Ill. STATISTICAL SECTION -Continued
Assessed Value and Estimated Actual Value of Taxable Property -
Last Ten Fiscal Years
Direct and Overlapping Property Tax Rates -Last Ten Fiscal Years
Principal Property Tax Payers-Current Year and Ten Years Ago
Secured Property Tax Levies and Collections-Last Ten Fiscal Years
Ratios of Outstanding Debt by Type-Last Ten Fiscal Years
Ratio of General Bonded Debt Outstanding-Last Ten Fiscal Years
Direct and Overlapping Debt
Legal Debt Margin Information-Last Ten Fiscal Years
Pledged Revenue Coverage-Last Ten Fiscal Years
Demographic and Economic Statistics-Last Ten Calendar Years
Principal Employers-Current and Ten Calendar Years Ago
Full-Time and Part-Time City Employees by Function-Last Ten Fiscal Years
Operating Indicators by Function~ Last Ten Fiscal Years
Capital Asset Statistics by Function-Last Ten Fiscal Years
PAGE
124
125
126
127
128
129
130
131
133
134
135
136
137
138
262
INTRODUCTORY SECTION
263
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264
City ef YWoopark
799 Moorpark Avenue, Moorpark, California 93021 (805) 517-6200 fax (805) 532-2545
December 30, 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, 2015. 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 GASS No. 44 requirements for fiscal year 2014/15.
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.
-i-265
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 1 x 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
50 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.
--ii-266
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.
-iii-267
ANNUAL AUDIT
An independent accounting firm has performed the annual audit of the City's financial statements for the
fiscal year ended June 30, 2015. 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.
APPROPRIATION LIMIT
Article XlllB 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 upco.ming
fiscal year. The appropriation limit and the City's appropriations subject to the limit for fiscal year
2014/2015 amounted to $31,561,052 and $14,924,934 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, 2015,
approximately $35 million was invested with the Ventura County Pool; $80 million in various U.S.
Treasury Notes, Agency Securities and money markets; about $3.0 million in the State Treasurer's Local
Agency Investment Fund (LAIF); and $3 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 Assets. 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, 2015 have a net ending balance of
$260 million.
-iv-268
LONG-TERM LIABILITIES/BONDED INDEBTEDNESS
At June 30, 2015, the City has no outstanding bonds but does have long-term liabilities in the
approximate amount of $5.1 million comprised of $0.6 million for employee compensated absences
(accrued leave) and $4.4 million in net pension liability.
The City provides retirement benefits (pension) by contributing to the California· Public Employees
Retirement System (CalPERS). The City pays 100% of the Annual Required Contributions (ARC), as
calculated by CalPERS. The City implemented GASS 68 this year. GASS 68 requires the City to record
net pension liability on the Statement of Net Position. This is the first year the City has recorded a net
pension liability and the impact is a reduction in net position by $4,430, 102 for June 30, 2015. In January
2015, the City contributed $3.6 million towards the net pension liability. Please read Note 7 -
RETIREMENT PLAN for a discussion on the City's retirement plans and the net pension liability.
The City participates in the California Employers' Retiree Benefit Trust (CERBT) administered by
CalPERS to provide post-employment medical insurance to City retirees. The City accounts for this
liability, per GASS 45, Other Post-Employment Benefits (OPES). The most recent actuarial valuation was
performed on June 30, 2015, and shows the OPES liability is 81% funded. The City contributed $644,768
in October 2015 to fully fund the OPES liability. The City has a "Net OPES Asset" of $109,000 on the
Statement of Net Position. Please see Note 8 -OTHER POST EMPLOYMENT BENEFITS in the CAFR.
The Successor Agency has the 2006 Tax Allocation Bonds (2006 Bonds) and the 2014 Tax Allocation
Refunding Bonds (2014 Bonds). The 2006 Bonds and 2014 Bonds outstanding principal as of
June 30, 2015 were $11.5 million and $13.4 million, respectively. The purpose of the 2006 bonds were to
finance a portion of the costs of implementing the Redevelopment Plan and fund redevelopment activities
within the Agency project area. In November 2014, the Successor Agency issued the 2014 Bonds to
refund the 1999 Tax Allocation Refunding Bonds and the 2001 Tax Allocation Bonds.
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, 2014. 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.
-v-269
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, Malady & 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,
STEVEN KUENY
CITY MANAGER
-vi-
RON AHLERS
FINANCE DIRECTOR
270
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2015
DIRECTORY OF CITY OFFICIALS
CITY COUNCIL
Janice S. Parvin, Mayor
Roseann Mikos, Councilmember
Keith F. Millhouse, Mayor Pro Tern
David Pollock, Councilmember
Mark Van Dam, Councilmember
CITY MANAGEMENT STAFF
Steven Kueny, City Manager
Deborah Traffanstedt, Assistant City Manager
David Bobardt, Community Development Director
David Klotzle, City Engineer/Public Works Director
Jeremy Laurentowski, Parks & Recreation Director
Ron Ahlers, Finance Director
-vii-271
I
Arts
Commission
Parks ano
Recreation
Commission
Planning
Commission
Library
Board
Community
Development
Department
Building and Safety
Code Compliatee
Pennlt:s
Plarinirlg
Business Registratioo
Eoono:mic Development
Housing Programs
Successor Agency to
U1e Redevelupr11~1l
Agency
CITY OF MOORPARK
ORGANIZATION CHART .,
I
I
I
I
I
I
-·-------------I
I
I
I
I
' I ........
I
I
I
I
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Police Services
(Contract)
I
Administrative
Services
Department
City Clerk
1-lJman Resoun:es
Risk Management
Information Systems
Cable Televlslcn
Legislatiw Relations
Public lnformaticn
Intergovernmental
Relauons
l..lxa!y
Emergency Management
Honorable City
Council
City Manager
,____
Parks, Recreation
& Community
Services
Department
Art In Public Places
Par1cs and Landscape
Maintenance
Recreation
Active Adult Center
cipen Space
Maintenance
Facility Operations and
Maintenance
Property Management
-viii-
City Attorney
(Contract)
City Englneerf
Public Works
Department
Assessment Dislrict Stll!et
Lighting
Gapital Projects
Qtissing Guards
NPDES
Patking Enforcement
Street Maintenance
Transit
:!Ollll Waste & Kecycllng
Anlmal ConlrolNecior
I
Finance
Department
Cash Management
Central Se!vices
Fmance and Accounting
Fixed Assets Management
Purchasing
Franchise Administration
Budget Development &
Administration
272
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Moorpark
.r·
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2014
Executive Director/CEO
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274
FINANCIAL SECTION
275
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276
735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
9098895361 F
ramscpa. net
PARTNERS
Brenda L. Odle. CPA. MST
Terry P. Shea. CPA
Kirk A Franks. CPA
Scott W. Manno. CPA CGMA
Leena Shanbhag. CPA. MST. CGMA
Jay H. Zercher. CPA (Partner Emeritus)
Phillip H. Waller. CPA (Partner Emerrcus)
DIRECTORS
Bradferd A. Welebir. CPA. MBA
MANAGERS I STAFF
Jenny Liu. CPA. MST
Seong-Hyea Lee. CPA. MBA
Charles De Simoni. CPA
Yiann Fang. CPA
Nathan Statham. CPA. MBA
Brigitta Bartha. CPA
Gardenya Duran, CPA
Juan Romero. CPA
Ivan Gonzales. CPA. MSA
Brianna Pascoe. CPA
Daniel Hernandez. CPA. MBA
MEMBERS
American Institute of
Certified Public Accountants
PCPS The A/CPA Alliance
{or CPA Firms
Governmental Audit
Quality Center
California Society of
Certified Public Accountants
ROGERS, ANDERSON. MALODY & SCOTT. LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
Independent Auditor's Report
The Honora_ble City Council
City of Moorpark, California
Report on the financial statements
We have audited the accompanying financial statements of the governmental
activities, each major fund, and the aggregate remaining fund information of the
City of Moorpark (City), California, as of and for the year ended June 30, 2015,
and the related notes to the financial statements, which collectively comprise the
City's basic financial statements as listed in the table of contents.
Management's responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these
financial statements in accordance with accounting principles generally accepted
in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor's responsibility
Our responsibility is to express opinions on these financial statements based on
our audit. We conduc'ted 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 purpose of expressing an opinion on the effectiveness of the entity's
internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
-1-
STABILITY. ACCURACY. TRUST.
277
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, as of June 30, 2015, 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
Change in Accounting Principle
As discussed in Note 1 of the financial statements, the City adopted the provisions of GASB Statement
No. 68, Accounting and Financial Reporting for Pensions -An Amendment of GASB Statement No. 'Z1
and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the
Measurement Date -An Amendment of GASB Statement No. 68. 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 management's
discussion and analysis, budgetary comparison information, OPEB schedule of funding progress,
schedule of the City's proportionate share of the plans' net pension liability and related ratios as of the
measurement date, and schedule of plan's contributions 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 ~ontext. 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'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.
-2-278
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
December 30, 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.
San Bernardino, CA
December 30, 2015
.:::; ()1 T L l/J
J
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280
Management's Discussion and Analysis
281
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282
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2015
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, 2015. 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 2014/15 by $372, 194,413
(Net Position). Of this amount, $22,642,705 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" ($260,051,061 ). Restrictions for Special Revenue Funds amounts to
$89,500,647, this reduces the Total Net Position to the Unrestricted Net Position ($22,642,705).
The Statement of Net Position is presented on page 15.
• The City's Total Net Position increased by $16,043,205 during the current fiscal year. The
Statement of Activities is presented on page 16.
• As of June 30, 2015, the City's governmental funds (General Fund, Special Revenue Funds, Debt
Service Funds, and Capital Projects Funds) reported combined ending fund balances of
$109,924,503, an increase of $11,581,645, 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 $3,660,018
($660,077 is in nonspendable form, and $2,999,941 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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City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2015
The Statement of Net Position presents information on all of the City's assets, deferred inflows of
resources, liabilities, and deferred outflows of resources, with the difference between them 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 focal 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.
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City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2015
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,
Parks/Public Facilities, Los Angeles Area of Contribution, Low-Moderate Income Housing Asset, Prop 1 B
Local Streets and Roads, Community Development, Endowment, 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.
The City adopts an annual budget for the majority of its funds. A budgetary comparison statement is
provided for 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 private purpose trust fund 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, fund equity and
operations of the dissolved Redevelopment Agency were transferred to the "Successor Agency Private
Purpose Trust Fund".
Notes to the Basic Financial Statemen~. 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 29-74
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 $372 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 the schedule below, the largest portion of the City's net position (70%) 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.
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City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2015
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 (6%) 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, 2015, 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.
Net Position
Governmental Activities
As of June 30, 2015 and 2014
2015 2014
Assets:
Current and other assets $ 117,169,350 $ 104,830,895
Capital Assets 260,051,061 259,798,991
Total Assets: 377,220,411 364,629,886
Deferred Outflows of Resources:
Pension related 4,505,847
Liabilities:
Other liabilities 7,994,979 3,302,288
Total Liabilities: 7,994,979 3,302,288
Deferred Inflows of Resources:
Pension related 1,536,866
Net Position:
Net invested in capital assets 260,051,061 259,798,991
Restricted 89,500,647 85,872,675
Unrestricted 22,642,705 15,655,932
Total Net Position, as restated $ 372,194,413 $ 361,327,598
The City's net position increased by $16 million during the current fiscal year as a result of increase
development activity within the City.
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City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2015
Changes in Net Position
Governmental Activities
For the Years Ended June 30, 2015 and 2014
2015
Revenues:
Program Revenues:
Charges for services $ 18,380,410
Operating contributions and grants 4,049,606
Capital contributions and grants 4,636,843
General Revenues:
Property taxes, levied for general purposes 7,638,300
Franchise taxes 1,284,268
Sales taxes 2,749,320
Sales taxes in lieu 896,527
Motor vehicle in lieu tax, unrestricted 15,399
Investment income 1, 116,545
Other 685,569
Total Revenues: 41,452,787
Expenses:
General government 1,212,685
Public safety 7,024,242
Public services 11,558,575
Parks and recreation 5,614,080
Total Expenses: 25,409,582
Increase (decrease) in net position 16,043,205
Net position, beginning of year, as restated 356, 151,208
Net position, end of year $ 372, 194,413
-8-
2014
$ 13,859,658
4,364,461
2,010,143
6,841,765
1,222,759
2,695,884
1,089,362
15,942
1,153,683
492,755
33,746,412
2,169,069
6,882,753
11,779,873
6,026, 182
26,857,877
6,888,535
354,439,063
$ 361,327 ,598
287
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2015
Program Revenues
Capital
Contributions and
Grants,17%
Charges for
Services,68%
Operating
Contributions and
Grants,15%
General Revenues
Investment income,
8% Other,5%
Motor vehicle in lieu
tax,0% yikkb Property tax,53%
Sales tax in lieu,6%
Sales tax,19%
J1004
Franchise fee,9%
g_ 288
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2015
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
$109,924,503. This is an increase of $11,581,645 in comparison with the prior year. $11,023,393 or
10% is nonspendable, $54,572, 775 or 50% is restricted to specific purpose, $711,399 or 1 % is
committed, $42,221,565 or 38% is assigned and $1,395,371 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 $3,660,018, which increased by $24, 119 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 2013/2014 are as follows:
• The City's property tax revenues increased by $796,535 or 6.9%.
• Sales tax revenues increased by approximately $53,436 or 2.0%.
• The Sales Tax Compensation or "triple flip" decreased by $192,834 or 17.7%. Last year the City
received amounts due from the prior years.
• Interest earnings decreased by $86,317 or 25.5% due to market value losses.
• Expenditures and transfers out ended the year approximately· $3.4 million more than the prior
year figure due to the pay down on the pension debt and an increase in the transfer to the Special
Projects Fund.
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City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2015
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 $1.9 million due to increased fees by
new development within the City.
Assessment District Fund
The fund balance of the Assessment District Fund decreased by $68,213 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 $2.1 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 $73,585 from the prior year
due to increased fees by new development within the City.
Low-Mod 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 1 B Local Streets and Roads Fund
In Fiscal Year 2013/2014, this fund received a grant in the amount of $1.1 million approximately for the
purchase of two CNG busses and the expansion of the Moorpark Metro link North Parking.
Community Development Fund
This fund experienced a 10% decrease in fees and activities due to new housing development within the
City.
Endowment Fund
The fund balance of the Endowment Fund increased by $6.4 million from Fiscal Year 2013/201'4. This is
due to increased development activity within the City.
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City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2015
Police Facilities Fee Fund
The fund balance of the Police Facilities Fund improved by $220,617 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 $2 million this past year. The Special Projects Fund
transferred about $2.9 million to pay down the pension liability of the City. The June 30, 2015 fund
balance is about $24.6 million.
Non-Major Governmental Funds
The fund balance of all other Non-Major Governmental Funds grew by $1. 7 million from the previous
fiscal year due to increased fees from new development within the City.
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, 2015, were revenues exceeding
expenditures by approximately $2 million which was transferred to the Special Projects Fund. Revenues
plus Transfers In were $82, 788 less than the budget and expenditures plus Transfers Out ended the year
under budget by $3.1 million.
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City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2015
CAPITAL ASSET AND LONG-TERM LIABILITIES
Capital Assets. The City's investment in capital assets as of June 30, 2015, amounted to $260 million
(net of accumulated depreciation). This investment, detailed in the table below, includes land, rights of
way, construction in progress, buildings and improvements, machinery and equipment, and infrastructure.
The total increase in the City's investment in capital assets for the current fiscal year was $0.3 million.
2015 2014
Land $ 41,079,642 $ 39,380,903
Rights of Way 123,066,830 123,066,830
Construction in Progress 12,015,023 10,529,962
Buildings and inprovements 26,662,019 27,733,353
Machinery and equipment 2,440,750 2,481,206
Infrastructure 54,786,797 56,606,737
Total $ 260,051,061 $ 259,798,991
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 page 48 of this report.
Long-term Liabilities
At the end of the current fiscal year, the City's long-term liabilities outstanding are $5,079,460, which are
the net pension liability and 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.
The City implemented GASB 68, Accounting and Financial Reporting for Pensions, this fiscal year. The
net pension liability is $4.4 million for the City. In January 2015, the City contributed $3.6 million to pay
down this net pension liability. This contribution will be realized in next year's actuarial report.
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 Sheriff's Contract continue to exceed revenue growth.
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City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2015
The State's "Triple Flip" payment plan remains in effect as the State repaid the $15 billion deficit reduction
bonds in Fiscal Year 2015/2016. The impact to the City will be on cash flow during Fiscal Year 2015-
2016 and the restoration of the full 1 % of Bradley-Bums Sales Tax.
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, 201·1. 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 2015/2016, the City took into consideration the following factors in preparing the budget:
• Sales Tax revenues assume a minor increase from fiscal year 2014/2015.
• 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%.
• Decrease of 3.029% in PERS employer retirement rate from 11.032% to 8.003% effective July 1,
2015. This is a direct result of the $3.6 million pay down of net pension liability.
• 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 2015/2016 when compared to fiscal year 2014/2015 actual payments.
A priority of the City is to maintain high quality of services while adopting a balanced budget. As in prior
years, the fiscal year 2015/2016 budget as adopted by the City Council is a balanced budget and will
serve as a guide in planning for the future.
REQUESTS FOR 1.NFORMATION
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.
-14-293
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294
BASIC FINANCIAL STATEMENTS
295
City of Moorpark
Statement of Net Position
June 30, 2015
Governmental
Activities
ASSETS
Cash and investments $ 104,110,384
Receivables, net:
Accounts 1,888,968
Interest 389,355
Prepaid items 59,089
Due from other governments 342,501
Net OPEB asset 109,000
Property held for resale 8,096,221
Long term notes receivables 2,173,832
Capital assets, net of accumulated depreciation
Non-depreciable 177,512,444
Depreciable, net of accumulated depreciation
Buildings and improvements 26,662,019
Machinery and equipment 2,440,750
Infrastructure 53,435,848
Total assets 377 ,220,411
DEFERRED OUTFLOWS OF RESOURCES
Pension related 4,505,847
LIABILITIES
Accounts payable and accrued liabilities 2,915,519
Noncurrent liabilities:
Due within one year 350,181
Due in more than one year 4,729,279
Total liabilities 7,994,979
DEFERRED INFLOWS OF RESOURCES
Pesion related . 1,536,866
NET POSITION
Net investment in capital assets 260,051,061
Restricted for.
Public services 51,265,949
Recreation services 4,325,509
Public safety 21,898,653
Housing activities 12,010,536
Unrestricted 22,642,705
Total net position $ 372,194,413
The accompanying notes are an integral part of these financial statements.
-15-296
City of Moorpark
Statement of Activities
Year Ended June 30, 2015
Functions/Programs
Primary Government
Governmental activities:
General government
Public safety
Public services
Parks and recreation
Total governmental activities
Total primary government
Pr!!aram Revenues
Operating Capital
Charges for Contributions Contributions
Ex~nses Service and Grants and Grants
$ 1,212,685 $ 1,463,859 $ $
7,024,242 3,325,404
11,558,575 10,471,498 4,049,606 4,636,843
5,614,080 3,119,649
25,409,582 18,380,410 4,049,606 4,636,843
$ 25,409,582 $ 18,380,410 $ 4,049,606 $ 4,636,843
General revenues:
Taxes:
Property tax, levied for general purpose
Franchise fee
Sales tax
Sales tax in lieu
Motor vehicle in lieu tax, unrestricted
Investment income
Other
Total° general revenues
Change in net position
Net position, beginning of year, as restated (see Note 16)
Net position, end of year
The accompanying notes are an integral part of these financial statements.
-16 -
$
$
Net
Governmental
Activities
251,174
(3,698,838)
7,599,372
(2,494,431)
1,657,277
7,638,300
1,284,268
2,749,320
896,527
15,399
1, 116,545
685,569
14,385,928
16,043,205
356, 151,208
372,194,413
297
City of Moorpark
Balance Sheet -Governmental Funds
June 30, 2015
S~cial Revenue
Street and Assessment
General Traffic Safe!}'. Districts
ASSETS
Cash and investments $ 3,773,298 $ 21,675,350 $ 5,290,696
Receivables:
Accounts 875,548 24,643 53,542
Interest
Notes and loans
Due from other funds 10,252
Prepaid items 48,933 10,156
Due from successor agency
Property held for resale 611,084
Total assets $ 5,319,115 $ 21,710,149 $ 5,344,238
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 1,176,087 $ 68,772 $ 248,645
Due to other funds
Unearned revenues 483,010
Total liabilities 1,659,097 68,772 248,645
Deferred inflows of resources:
Unavailable revenues
Deferred loans
Total deferred inflows of resources
Fund balances:
Nonspendable 660,077 10,156
Restricted 21,631,221 5,095,593
Committed
Assigned
Unassigned 2,999,941
Total fund balances (deficit) 3,660,018 21,641,377 5,095,593
Total liabilities, deferred inflows of
resources and fund balances $ 5,319,115 $ 21,710,149 $ 5,344,238
The accompanying notes are an integral part of these financial statements.
-17 -298
$
$
$
$
Parks/Public
Facilities
5,280,622
4,921
5,285,543
40,160
919,874
960,034
4,325,509
4,325,509
5,285,543
$
$
$
Los Angeles
Area of
Contribution
11,733,871
13,609
182,097
250,249
177,006
12,356,832
85,909
85,909
432,346
432,346
177,006
11,661,571
11,838,577
$ 12,356,832
Special Revenue
Low-Mod
Income
Housing Asset
$
$
$
$
226,694
207,258
1,790,214
7,429,564
9,653,730
2,578
10,000
12,578
1,997,472
1,997,472
7,429,564
214,116
7,643,680
9,653,730
-18 -
$
$
$
$
Continued
Prop 18
Local Streets Community
and Roads Develo~ment
1,113,166 $ 921,320
1,309 10,385
1, 114,475 $ 931,705
$ 931,705
1,091,037
1,091,037 931,705
23,438
23,438
1,114,475 $ 931,705
299
City of Moorpark
Balance Sheet -Governmental Funds (continued)
June 30, 2015
Special
Revenue Ca(!ital Projects
Police
Facilities Special
Endowment Fee Projects
ASSETS
Cash and investments $ 11,789,027 $ 976 $ 23,719,941
Receivables:
Accounts 10,492 102
Interest
Notes and loans 6,500
Due from other funds 1,428,642 919,874
Prepaid items
Due from successor agency 342,501
Property held for resale
Total assets $ 13,577;162 $ 1,078 $ 24,639,815
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 16,558 $ $
Due to other funds 1,428,642
Unearned revenues
Total liabilities 16,558 1,428,642
Deferred inflows of resources:
Unavailable revenues
Deferred loans 6,500
Total deferred inflows of resources 6,500
Fund balances:
Nonspendable 1,771,143 919,874
Restricted
Committed
Assigned 11,782,961 23,719,941
Unassigned (1,427,564)
Total fund balances (deficit) 13,554,104 ~1,427,564) 24,639,815
Total liabilities, deferred inflows of
resources and fund balances $ 13,577,162 $ 1,078 $ 24,639,815
The accompanying notes are an integral part of these financial statements.
-19 -300
Continued
Nonmajor Total
Governmental Governmental
Funds Funds
$ 18,585,423 $ 104, 110,384
894,417 1,888,968
389,355
126,869 2,173,832
2,535,774
59,089
342,501
55,573 8,096,221
$ 19,662,282 $ 119,596, 124
$ 345,105 $ 2,915,519
187,258 2,535,774
7,079 1,591, 126
539,442 7,042,419
66,015 66,015
126,869 2,563, 187
192,884 2,629,202
55,573 11,023,393
11,621,327 54,572,775
711,399 711,399
6,718,663 42,221,565
{177,006} 1,395,371
18,929,956 109,924,503
$ 19,662,282 $ 119,596, 124
-20-301
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302
City of Moorpark
Reconciliation of the Balance Sheet of
Governmental Funds to the Statement of Net Position
June 30, 2015
Fund balances of governmental funds
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.
Long-term notes and loans receivable are not current financial resources and,
therefore, are deferred inflows in the governmental funds.
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.
Long term liabilities are not due and payable
in the current period and, therefore, are not reported in funds.
Compensated absences payable
Net pension liability
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.
Deferred inflows and outflows of resources related to pensions are not
reported in the governmental funds:
Net deferred inflows of resources
Net deferred otflows of resources
Net position of governmental activities
The accompanying notes are an integral part of these financial statements.
-21 -
$ 109,924,503
260,051,061
2,563,187
1,657,141
(649,358)
(4,430, 102)
109,000
(1,536,866)
4,505,847
$ 372,194,413
303
City of Moorpark
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2015
SEecial Revenue
Street and Assessment
General Traffic Safe~ Districts
REVENUES
Taxes $ 12,285,684 $ $
Licenses and permits 143,334
Fines and forfeitures 208,150
Use of money and property 525,452 262,735 58,864
Charges for services 1,276,364 2,921,706 168,801
Intergovernmental 229,415
Maintenance assessments 2,487,047
Other revenue 293,774 730 24,812
Total revenues 14,962, 173 3, 185,171 2,739,524
EXPENDITURES
Current:
General government 2,495,675
Public safety 6,410,918
Public services 2,320,888 419,409 391,793
Parks and recreation 1,822,537 3,897,395
Capital Outlay 370,007 850,679 20,813
Debt service:
Interest
Total expenditures 13,420,025 1,270,088 4,310,001
Excess (deficiency) of revenues
over (under) expenditures 1,542,148 1,915,083 {1,570,477~
OTHER FINANCING SOURCES (USES)
Transfers in 2,892,546 1,502,264
Transfers out {4,410,575~
Total other financing sources (uses) (1,518,029) 1,502,264
Net change in fund balances 24,119 1,915,083 (68,213)
Fund balances (deficit), beginning of year 3,635,899 19,726,294 5,163,806
Fund balances (deficit), end of year $ 3,660,018 $ 21,641,377 $ 5,095,593
The accompanying notes are an integral part of these financial statements.
-22-304
Continued
Special Revenue
Los Angeles Low-Mod Prop 18
Parks/Public Area of Income Local Streets Community
Facilities Contribution Housing Asset and Roads Development
$ $ $ $ $
1,106,630
5,950
55,038 162,759 2,677 13,746
2,314,795 1,314,415 19,800 1,104,622
71,950
2,369,833 1,477,174 22,477 13,746 2,289,152
100
4,138 32,708 26,065 3,238,766
255,665 1,370,881
4,476
259,803 1,403,589 30,641 3,238,766
2,110,030 73,585 (8, 164) 13,746 (949,614)
949,597
949,597
2,110,030 73,585 (8,164) 13,746 (17)
2,215,479 11,764,992 7,651,844 9,692 17
$ 4,325,509 $ 11,838,577 $ 7,643,680 $ 23,438 $
-23-305
City of Moorpark
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2015
Special
Revenue Capital Projects
Police
Facilities Special
Endowment Fee Projects
REVENUES
Taxes $ $ $
Licenses and permits
Fines and forfeitures
Use of money and property 187,704 689 26, 185
Charges for services 4,897,921 219,928
Intergovernmental 2,142,717 2,328
Maintenance assessments
Other revenue 29
Total revenues 7,228,371 220,617 28,513
EXPENDITURES
Current:
General government
Public safety
Public services 182,040
Parks and recreation
Capital Outlay 648,412
Debt service:
Interest
Total expenditures 830,452
Excess (deficiency) of revenues
over (under) expenditures 6,397,919 220,617 28,513
OTHER FINANCING SOURCES (USES)
Transfers in 2,021,222
Transfers out ~2.892,546~
Total other financing sources (uses) (871,324)
Net change in fund balances 6,397,919 220,617 (842,811)
Fund balances (deficit), beginning of year 7,151?,185 (1,648,181) 25,482,626
Fund balances (deficit), end of year $ 13,554,104 $ ~1.427,564~ $ 24,639,815
The accompanying notes are an integral part of these financial statements.
-24-306
Continued
Non major Total
Governmental Governmental
Funds Funds
$ 1,402,635 $ 13,688,319
1,249,964
170, 188 384,288
216,550 1,512,399
1,712,874 15,951,226
2,872,172 5,246,632
2,487,047
53,902 445,197
6,428,321 40,965,072
2,495,775
378,847 6,789,765
3,852,420 10,468,227
12,382 5,732,314
376,413 3,892,870
4,476
4,620,062 29,383,427
1,808,259 11,581,645
7,365,629
{62,508~ {7,365,629~
{62,508)
1,745,751 11,581,645
17,184,205 98,342;858
$ 18,929,956 $ 109,924,503
-25-307
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, 2015
Net change in fund balance -total governmental funds
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:
Capital outlays and other capital expenditures
Depreciation expense
Capital assets deletions, net of accumulated depreciation
Long-term notes and loans receivable are reported as expenditures when made and
Capital Outlay
$ 3,767,999
(3,418,849)
(97,080)
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.
Revenues that are measurable but not available are not recorded as revenues under the
modified accrual basis of accounting.
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.
Decrease in compensated absences
Decrease in OPEB asset
Pension expense net adjustments
Change in net position of governmental activities
The accompanying notes are an integral part of these financial statements.
-26-
$ 11,581,645
252,070
29,035
487,715
2,471
(25,000)
3,715,269
$ 16,043,205
308
City of Moorpark
Statement of Fiduciary Net Position
June 30, 2015
Successor Agency
Private Purpose Agency
Trust Fund Fund
ASSETS
Cash and investments $ 3,084,061 $ 4,273,254
Cash and investments with fiscal agent 3,532,530 5,641,752
Receivable:
Accounts 27,378
Prepaid insurance premium 277,976
Land held for resale 11,402, 135
Contruction in progress 119,736
Capital assets, net 9,085,029
Total assets 27,501,467 $ 9,942,384
LIABILITIES
Accounts payable . 252,256 $ 67,038
General deposits 4,206,629
Due to City of Moorpark 342,501
Bonds payable -due within one year 765,000
Bonds payable -due in more than one year 24,155,000
Amortizable charges -debt related 266,678
Due to bondholders 5,668,717
Total liabilities 25,781,435 $ 9,942,384
NET POSITION
Held in trust for the Successor Agency $ 1,720,032
The accompanying notes are an integral part of these financial statements.
-27--309
City of Moorpark
Statement of Changes in Fiduciary Net Position
Private Purpose Trust Fund -Successor Agency
Year Ended June 30, 2015
ADDITIONS
RPTTF distribution
Investment earnings
DEDUCTIONS
Total additions
Debt service payments -interest
Depreciation
Amortization of deferred charges
Other payments
Total deductions
Change in net position
Net position, beginning of year
Net position, end of year
$
$
Successor Agency
Private-Purpose
Trust Fund
2,275,190
75,617
2,350,807
1,451,082
202,519
6,774
919,660
2,580,035
(229,228)
1,949,260
1,720,032
The accompanying notes are an integral part of these financial statements.
-28-310
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
NOTE DESCRIPTION
1 Summary of Significant Accounting Policies
2 Cash and Investments
3 Notes and Loans Receivable
4 lnterfund Transactions
5 Capital Assets and Depreciation
6 Long-Term Liabilities
7 Retirement Plan
I
8 Other Post Employment Benefits
9 Conduit Debt -Revenue Bonds
10 Special Assessment Bonds
11 Risk Management
12 Classification of Net Position and Fund Balance
13 Commitments and Contingencies
14 Successor Agency -Private Purpose Trust Fund
15 Employees Retirement Plan
16 Restatement of Net Position
PAGE
29
39
44
46
48
49
49
59
61
62
63
66
69
70
74
74
311
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312
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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
(GASS) 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 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 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, 2015.
The following specific criteria were used in determining that the PFA and the IDA are "blended" component
units:
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.
4) The PFA and IDA did not issue separate financial statements in the current fiscal year.
-29-313
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
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.
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.
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).
-30-314
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
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, deferred inflows of resources, liabilities, and deferred outflows of resources, 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 acerual 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.
Certain eliminations have been made as prescribed by GASS 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 GASS 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, deferred inflows of resources, current liabilities, and deferred
outflows of resources are included on the Balance Sheets.
-31 -315
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Basis of Accounting and Measurement Focus, (continued)
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 unearned revenues. Expenditures are recorded when the fund liability is incurred, if measurable,
except for un-matured 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.
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 government's 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 fee 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.
-32-316
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Basis of Accounting and Measurement Focus, (continued)
The Low and Moderate Income Housing Asset Special Revenue Fund is used to account for the housing assets
transferred from the former 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 Low and Moderate Income Housing Fund of the former Agency.
The Proposition 18 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.
The 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 Endowment Special Revenue 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.
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.
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.
-33-317
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Basis of Accounting and Measurement Focus, (continued)
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 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 GASS 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 GASS 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 non-spendable 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, · 2015 was
$8,096,221.
-34-318
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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
Vehicles, Computers, and Equipment
Infrastructure Assets
Roadway Network
Drain Network
Parks and Recreation Network
H) Unearned and Unavailable Revenue
25 to 50 years
3 to 20 years
7 to 100 years
20 to 100 years
50 years
Unearned revenue is recorded for monies collected in advance that have not been earned. Unavailable revenue
is recorded when the availability criteria has not been met. As of June 30, 2015, unearned revenue in the
Governmental Funds amounted to $1,591,126. The majority of this amount, $1,091,037 is for the purchase of
transit buses and another $460,775 reflects an overpayment by the State to the City for the Sales Tax
Compensation revenue. Unavailable revenue amounted to $66,015; of which $58, 728 represents Transit
revenues from the State that were not available as of June 30, 2015.
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 and net pension liability at June 30, 2015.
-35-319
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
J) Employee Compensated Absences
City employees may receive from 20 to 30 days of 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 Memorandum of Understanding (MOU) with the Service Employee International Union.
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. SARA
receives incremental property taxes on property within the 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, 2015, 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.
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.
-36-320
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
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) Fund Balance Reporting and Governmental Fund Type Definitions
In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions,
the following fund balance classifications describe the relative strength of the spending constraints placed on the
purposes for which resources can be used:
Nonspendable -amounts that are not in a spendable form (such as inventory) or are required to be maintained
intact.
Restricted -amounts constrained to specific purposes by their providers (such as grantors, bondholders and
higher levels of government), through constitutional provisions. or by enabling legislation.
Committed -amounts constrained to specific purposes by a government itself, using the highest level of
decision-making authority, a City Council Action; to be reported as committed, amounts cannot be used for any
other purpose unless the government takes the same highest level action to remove or change the constraint.
Assigned -amounts a government intends to use for a specific purpose; intent can be expressed by the
governing body or by an official or body to which the governing body delegates the authority.
Unassigned -amounts that are for any purpose; positive amounts are reported only in the General Fund.
The City Council, establishes (and modifies or rescinds) fund balance commitments by passage of a resolution.
The City's Fund Balance Policy authorizes the Finance Director to assign Fund Balances for specific purposes.
When both restricted and unrestricted resources are available for use when expenditures are incurred, it is the
City's policy to use restricted resource first,· then unrestricted resources as they are needed. It is also the City's
policy to consider committed amounts as being reduced first, followed by assigned amounts and then
unassigned amounts when expenditures are incurred for purposes for which amounts in any of those
unrestricted fund balance classifications could be used.
-37 -321
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
0) Pension plans
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to
pensions, and pension expense, information about the fiduciary net position and additions to/deductions from
the fiduciary net position have been determined on the same basis as they are reported by the CalPERS
Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are
recognized when currently due and payable in accordance with the benefit terms. Investments are reported at
fair value. CalPERS audited financial statements are publicly available reports that can be obtained at California
Public Employees Retirement System (CalPERS) website under Forms and Publications.
GASB 68 requires that the reported results must pertain to liability and asset information within certain defined
timeframes. For this report, the following timeframes are used.
Valuation Date (VD)
Measurement Date (MD)
Measurement Period (MP)
P) Implementation of new GASB pronouncements
June 30, 2013
June 30, 2014
July 1, 2013 to June 30, 2014
GASB has issued Statement No. 68, Accounting and Financial Reporting for Pensions -An Amendment of
GASB Statement No. 27. The primary objective of this Statement is to improve accounting and financial
reporting by state and local governments for pensions. It also improves information provided by state and local
governmental employers about financial support for pensions that is provided by other entities. This statement
establishes standards for measuring and recognizing liabilities, deferred outflows of resources, and deferred
inflows of resources, and expense/expenditures. For defined benefit pension plans, this Statement identifies the
methods and assumptions that should be used to project benefit payments, discount projected benefit payments
to their actuarial present value, and attribute that present value to periods of employee service.
GASB has issued Statement No. 71, Pension Transition for Contributions Made Subsequent to the
Measurement Date -An Amendment of GASB Statement No. 68. The objective of this Statement is to address
an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial
Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or
local government employer or non-employer contributing entity to a defined benefit pension plan after the
measurement date of the government's beginning net pension liability
These pronouncements have been implemented for purposes of measuring the net pension liability and
deferred outflows/inflows of resources related to pensions, and pension expense/expenditures. Information
about the fiduciary net position of the City's CalPERS plans (Plans) and additions to/deductions from the Plans'
fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this
purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable
in accordance with the benefit terms. Investments are reported at fair value
-38-322
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
2) CASH AND INVESTMENTS
Cash and investments at June 30, 2015, consisted of the following:
City Treasury Deposits
Demand Deposits
Cash on Hand
$ 2,530,057
Total City Treasury Deposits
City Treasury Investments
Local Agency Investment Fund (LAIF)
Ventura County Pool
Highmark Money Market
U.S. Treasury Notes
U.S. Agency Securities:
Federal National Mortgage Association
Federal Home Loan Bank
Federal Farm Credit Bank
Federal Home Loan Mortgage Corporation
Federal Agricultl:Jral Mortgage Corporation
Total City Treasury Investments
Cash and Investments With Fiscal Agent
Money Market
US Treasury Notes
Total Cash and Investments With Fiscal Agent
1,750
2,531,807
3,038,486
35, 125, 117
1,029,387
2,012,580
20,741,550
18,893,497
9,295,715
12,072,260
6,727,300
108,935,892
7,921,726
1,252,556
9,174,282
Total Cash and Investments $120,641,981
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 $ 104, 110,384 $ 3,084,061 $ 4,273,254 $ 111,467,699
Cash and investments
with fiscal agent 3,532,530 5,641,752 9,174,282
Total $ 104,110,384 $ 6,616,591 $ 9,915,006 $ 120,641,981
-39-323
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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 Code
or the City's investment policy.
Maximum Maximum
Authorized Maximum Percentage Investment
Investment T~~e Maturi~ of Portfolio* In One Issuer
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270days 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.
--40 -324
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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.
B) Interest Rate Risk
Authorized Investment Type
U.S. Treasury Obligations
U.S. Agency Securities
Banker's Acceptances
Commercial Paper
Money Market Mutual Funds
Investment Contracts
Maximum Maturity
None
None
180 days
270 days
NIA
30 years
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.
-41 -325
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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 City's investments by maturity.
Remainin!I maturi~ (in ~ears)
Investment type Total Less than 1 1 to2 2to3 3to4 >4
LAIF $ 3,038,486 $ 3,038,486 $ $ $ $
Ventura County Pool 35, 125, 117 35,125,117
Highmark Money Market 1,029,387 1,029,387
U.S. Treasury Notes 2,012,580 1,001,410 1,011,170
U.S. Agency Securities:
Federal National MTG Assn. 20,741,550 1,004,730 7,083,360 7,083,780 5,569,680
Federal Home Loan Bank 18,893,497 4,063,920 1,008,980 990,250 5,728,5n 1.101,no
Federal Farm Credit Bank 9,295,715 3,035,880 2,029,140 4,230,695
Federal National MTG Corp. 12,072,260 1,003,060 2,002,970 3,095, 110 5,971,120
Federal Agric MTG Corp. 6,727,300 3,006,375 2,709,515 1,011,410
Held by bond trustee:
Money market funds 7,921,726 7,921,726
U.S. Treasury Notes 1,252,556 1,252,556
$ 118,110,174 $ 55,440,392 $ 1,008,980 $ 16,118,835 $ 21,657,292 $ 23,884,675
C) Credit Risk and Concentration of Credit Risk
At June 30, 2015, the carrying amount of the City and SARA's combined deposits with financial institutions was
$2,530,057. Bank balances, before reconciling items, were $3,107,500 at June 30, 2015, which was
collateralized with securities held by the pledging financial institution's trust department.
The California Government Code requires California depository banks and savings and loan institutions to
secure government organizations' cash deposits by pledging securities as collateral. The 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.
-42 -326
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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 (FDIC). The City,
however, does not normally waive the collateralization requirements. As of June 30, 2015, the City and SARA
combined have $2,857,500 in excess of the $250,000 limit of FDIC coverage. The $2,857,500 is fully
collateralized by the banking institution, per California law.
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 $ 3,038,486 Not Rated 2.6%
Ventura County Pool 35, 125, 117 AAAf 29.7%
Highmark Money Market 1,029,387 AAA 0.9%
U.S. Treasury Notes 2,012,580 N/A 1.7%
U.S. Agency Securities:
Federal National MTG Assn. 20,741,550 AA+ 17.6%
Federal Home Loan Bank 18,893,497 AA+ 16.0%
Federal Farm Credit Bank 9,295,715 AA+ 7.9%
Federal National MTG Corp. 12,072,260 AA+ 10.2%
Federal Agric MTG Corp. 6,727,300 AA 5.7%
Held by bond trustee:
Money market funds 7,921,726 Not Rated 6.7%
U.S. Treasury Notes 1,252,556 AA+ 1.1%
$ 118,110,174 100.0%
-43-327
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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, 2015,
accounts were maintained in the name of the City for $3,038,486. At June 30, 2015, the fair value of the State of
California Pooled Money Investment Account (PMIA) including accrued interest was $69,672,945,247. 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 $35, 125, 117 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. As of June 30, 2015, the fair value of the City's position in the pool equals the value of the pool
shares. 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.
3) NOTES AND LOANS RECEIVABLE
Notes and loans receivable activity for the year ended June 30, 2015, is as follows:
Beginning Ending
Balance Increases Decreases Balance
Notes receivable
Deferred property assessments $ 431.674 $ 671 $ • $ 432,345
Moorpark 20, LP 1,939,927 44,413 !582! • 1,983,758
Total notes receivable 2,371,601 45,084 !5821 2,416,103
Loans receivable
Rehabilitation 28,714 (15,000) 13,714
First-time home buyer assistance -Affordable Housing 22,644 (7,548) 15,096
CalHome 111,774 111,774
Mountain Recreation & Conservation Authority 6,500 6,500
Total loans receivable 169632 !22,5481 147 084.
Total loans and notes receivable $ 2,541,233 $ 45,084 $ !23,1301 $ 2,563,187
• Balance indudes accrued interest separately reported in the financial statements.
-44-328
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
3) NOTES AND LOANS RECEIVABLE (continued)
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, 2015, the principal balance
outstanding is $250,249 and accrued interest of $182,096 for a total balance of $432,345. The outstanding
balance and accrued interest are due and payable in 2023.
B) Moorpark 20, LP Promissory Note
On October 29, 2010, the Agency signed the Disposition and Development Agreement (ODA) with the Area
Housing Authority of the County of Ventura (AHA) and Moorpark 20, Limited Partnership (M20LP), consisting of
AHA and Santa Barbara Housing Assistance Corporation. The ODA 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 M20LP
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 M20LP 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, 2015 are $1,176,500 and $137,258 respectively for a total of$1,313,758.
On November 2, 201 O the Agency entered into a $600,000 loan agreement with M20LP to complete the
construction of the Project. As of June 30, 2012, M20LP 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 M20LP
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, NA and is secured by Deed of Trust and Security Agreement. The principal
and accrued interest outstanding on this note at June 30, 2015 are $600,000 and $70,000 respectively for a
total of $670,000.
The combined amount of principal and accrued interest outstanding at June 30, 2015 is $1,776,500 and
$207,258 respectively, for a total of $1,983,758.
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, 2015, was $13,714.
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, 2015 was $15,096. 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.
-45-329
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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, 2015 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, 2015, 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, 2015 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, 2015, consisted of the following:
Receivable Fund Pa~able fund Amount
General Fund Non Major Funds d $ 10,252
Special Revenues-Los Angeles A.O.C Non Major Funds a 177,006
Special Revenues -Endowment Special Revenues -Police Facilities c 1,428,642
Capital Projects -Special Projects Special Revenues -Parks and Public Facilities b 919,874
$ 2,535,774
a. In the Fiscal Year 2005/2006, the Los Angeles AOC Fund advanced to the Tierra Rejada Road/Spring
Road AOC, $600,000 to construct the median landscaping along Tierra Rejada Road. Repayment of the
outstanding loan is contingent upon collection of future development fees. The current amount is $177,006.
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 interestwill
be repaid as Park fees are collected from new developments.
-46-330
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
4) INTERFUND TRANSACTIONS, (continued)
Due to/Due from, (continued)
c. In the Fiscal Year 2005/2006, the Endowment Fund advanced to the Police 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 build-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.
d. In the current Fiscal Year, the General Fund advanced cash to the Local Transit Program Sc Fund,
which posted a negative cash balance. This is considered a short-term borrowing and is expected to be paid in
the next fiscal year.
Transfers
lnterfund transfers for the year ended June 30, 2015 consisted of the following:
Fund receiving transfers Fund making transfers Amount
General Fund Capital Projects -Special Projects 3 $ 2,892,546
Special Revenues -Assessments Districts General Fund 1-3 1,439,756
Non Major Funds 62,508
Special Revenues -Community Development General Fund 1-3 949,597
Capital Projects -Special Projects General Fund 2 2,021,222
Total governmental funds transfers $ 7,365,629
(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 CalPERS pension liability paydown.
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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, 2015:
Beginning Ending
Balance Additions Deletions Balance
Governmental activities:
Capital assets. not being depreciated:
Land $ 39,380,903 $ 1,698,739 $ $ 41,079,642
Land Rights-of-Way 123,066,830 123,066,830
Infrastructure -Roadway System 1,204,015 151,943 (5,009) 1,350,949
Construction in progress 10,529,962 3,422,512 (1,937,451) 12,015,023
Total capital assets not being depreciated 174, 181 ,710 5,273,194 (1,942,460) • 177,512,444
Capital assets, being depreciated:
Buildings and improvements 38,765,370 38,765,370
Machinery and equipment 6,425,759 345,488 (34,963) 6,736,284
Infrastructure
Roadway system 93,378,561 93,378,561
Storm drain system 2,933,748 2,933,748
Parks system 251,434 251,434
Total capital assets being depreciated 141,754,872 345,488 (34,9631 • 142,065,397
Less accumulated depreciation/amortization for:
Buildings and improvements (11,032,017) (1,071,334) (12, 103,351)
Machinery and equipment (3,944,553) (380,641) 29,660 (4,295,534)
Infrastructure
Roadway system (40,758,397) (1,933,946) (42,692,343)
Storm drain system (324,812) (27,899) (352,711)
Parks system (77,812) (5,029) (82,8411
Total accumula!ed depreciation (56,137,591) (3,418,849) 29,660 (59,526,780)
Total capital assets being deprecia!ed net 85,617,281 (3,073,361 l (5,303) 82,538,617
Governmental activities capital assets, net $ 259,798,991 $ 2,199,833 $ (1,947,763) $ 260,051,061
*Certain deletions in the capital assets activity schedule shown above are the result of reclassifications of assets
into a different class of asset and disposal of the assets. 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 depreciation for the same asset class.
Depreciation expense was charged to functions of the primary government as follows:
Governmental activities:
General government
Public safety
Public services, including general infrastructure
Parks and recreation
Total depreciation expense -governmental activities
-48-
$
$
54,422
234,478
2,452,301
677,648
3,418,849
332
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
6) LONG-TERM LIABILITIES
Long-term liability activities for the year ended June 30, 2015, are as follows:
Beginning
Balance Increases Decreases
Governmental activities:
Net pension liability (see Note 7) $ 6,053,113 $ $ (1,623,011)
Compensated absences 651,829 524,423 !526,894)
Governmental activities
long-term liabilities $ 6,704,942 $ 524,423 $ (2, 149,905)
Employee Compensated Absences
Ending Due within
Balance one year
$ 4,430,102 $
649,358 350,181
$ 5,079,460 $ 350,181
The long-term liability at June 30, 2015 is $649,358 for employee compensated absences. The General Fund is
primarily expected to liquidate this liability.
7) RETIREMENT PLAN
A. General Information about the Pension Plans
Plans Descriptions
The Plan is a cost-sharing, multiple-employer defined benefit pension plans administered by CalPERS. A full
description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for
funding, but not account purposes), and membership information are listed in the June 30, 2013 Annual
Actuarial Valuation Report for the plan. Details of the benefits provided can be obtained in Appendix B of the
actuarial valuation report. The actuarial valuation report and CalPERS' audited financial statements are publicly
available reports that can be obtained at CalPERS' website under Forms and Publications, at
www.calpers.ca.gov.
Benefits Provided
CalPERS provides service . retirement and disability benefits, annual cost of living adjustments and death
benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of
credited service, equal to one year of full time employment. Members with five years of total service are eligible
to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after
5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit,
or the Optional Settlement 2W Death Benefit. The cost of living adjustments (COLA) for each plan are applied
as specified by the Public Employees' Retirement Law (PERL).
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
7) RETIREMENT PLAN (continued)
A. General Information about the Pension Plans (continued)
Benefits Provided (continued)
The Plan operates under the provisions of PERL, the California Public Employees' Pension Reform Act of 2013
(PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The
Plan's authority to establish and amend the benefrt terms are set by PERL and PEPRA, and may be amended
by the California state legislature and in some cases require approval by the CalPERS Board.
The Plan's provisions and benefits in effect at June 30, 2015 are summarized as follows:
Contributions
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Miscellaneous
Prior to
January 1, 2013
2.0%@55
5 years service
monthly for life
50
1.426% to 2.418%
7.00%
11.03%
Section 20814(c) of PERL requires that the employer contribution rates for all public employers be determined
on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate.
The total plan contributions are determined through CalPERS' annual actuarial valuation process. For public
agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan's actuarially
determined rate is based on the estimated amount necessary to pay the Plan's alloc;;ited share of the risk pool's
costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is
required to contribute the difference between the actuarially determined rate and the contribution rate of
employees. For the measurement period ended June 30, 2014 (the measurement date), the average active
employee contribution rate for the respective Miscellaneous Plan is 7.00% percent of annual pay, and the
employer's contribution rate is 11.03% percent of annual payroll.
Employer contribution rates may change if plan contracts are amended. Employer Contributions for the
measurement period ended June 30, 2014 for the plan are $520,745.
The City has arraignments with its employees in where the City pays for a portion of the employees'
contributions. For employees in the Miscellaneous Plan the City contributes all of the employee portion. For
management and unrepresented Miscellaneous Classic employees the City contributes all of the employee
portion.
-50-334
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
7) RETIREMENT PLAN (continued)
A. General Information about the Pension Plans (continued)
Contributions (continued)
The actual employer payments of $520,745 made to CalPERS by the City during the measurement period
ended June 30, 2014 for the Miscellaneous Plan differ from the City's proportionate share of contributions of
$586,086 by $65,341, which is being amortized over the expected average remaining service lifetime in the
Public Agency Cost-Sharing Multiple Employer Plan.
B. Net Pension Liability
The City of Moorpark's net pension liability for the Plan is measured as the total pension liability, less the
pension plan's fiduciary net position. The net pension liability of each of the Plans is measured as of June 30,
2014, using an annual actuarial valuation as of June 30, 2013 rolled forward to June 30, 2014 using standard
update procedures. A summary of principal assumptions and methods used to determine the net pension
liability is as follows.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
For the measurement period ended June 30, 2014 (the measurement date), the total pension liability was
determined by rolling forward the June 30, 2013 total pension liability. The June 30, 2013 and June 30, 2014
total pension liabilities were based on the following actuarial methods and assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Asset Valuation Method
Actuarial Assumptions:
Discount Rate (2)
Inflation
Salary lncreases<1>
Investment Rate of Return <2>
Mortality Rate Table <3>
Post Retirement Benefit Increase
Miscellaneous
June 30, 2013
June 30, 2014
Entry Age Normal
Market Value
7.50%
2.75%
3.30% -14.20%
7.50%
Derived using CALPERS' membership data for all
Funds
Contract COLA up to 2% until purchasing power
protection allowance floor on purchasing power
applies.
(1) Annual increases vary by category, entry age, and duration of service.
(2) Net of pension plan investments and administrative expenses, includes inflation.
(3) The mortality table used was developed based on CalPERS' specific data. The table includes 20
years of mortality improvements using Society of Actuaries Scale BB. For more details on this table,
please refer to the 2014 experience study report.
-51 -335
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
7) RETIREMENT PLAN (continued)
B. Net Pension Liability (continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability (continued)
All other actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial
experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement
rates. The Experience Study report can be obtained at CalPERS' website under Forms and Publications.
Discount Rate
The discount rate used to measure the total pension liability was 7.50 percent for each Plan. To determine
whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS
stress tested plans that would most likely result in a discount rate that would be different from the actuarially
assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current
7.50 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The
long-term expected discount rate of 7.50 percent is applied to all plans in the Public Employees Retirement
Fund. The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that
can be obtained at CalPERS' website under the GASB 68 section.
According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without reduction
for pension plan administrative expense. The 7.50 percent investment return assumption used in this accounting
valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An
investment return excluding administrative expenses would have been 7.65 percent. Using this lower discount
rate has resulted in a slightly higher total pension liability and net pension liability. This difference was deemed
immaterial to the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan. Refer to the
sensitivity of the net pension liability to changes in the discount rate section of this note, which provides
information on the sensitivity of the net pension liability to changes in the discount rate.
CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability. Management
review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate will require
Board action and proper stakeholder outreach. For these reasons, CalPERS expects to continue using a
discount rate net of administrative expenses for GASB 67 and 68 calculations through at least the 2017-18 fiscal
year. CalPERS will continue to check the materiality of the difference in calculation until such time as they have
changed their methodology.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class.
-52 -336
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
7) RETIREMENT PLAN (continued)
B. Net Pension Liability (continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term
market return expectations as well as the expected pension fund cash flows. Such cash flows were developed
assuming that both members and employers will make their required contributions on time and as scheduled in
all future years. Using historical returns of all the funds' asset classes, expected compound (geometric) returns
were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block
approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits
was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected
return that arrived at the same present value of benefits for cash flows as the one calculated using both short-
term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate
calculated above and rounded down to the nearest one quarter of one percent.
The following table reflects long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
These geometric rates of return are net of administrative expenses.
Asset Class
Global Equity
Global Fixed Income
Inflation Sensitive
Private Equity
Real Estate
Infrastructure and Forest Land
Liquidity
Total
1 An expected inflation of 2.5% used for this period
•An expected inflation of 3.0% used for this period
New Strategic
Allocation
47.0%
19.0%
6.0%
12.0%
11.0%
3.0%
2.0%
100%
-53-
Real Return Real Return
Years 1 -101 Years 11+2
5.25% 5.71%
0.99% 2.43%
0.45% 3.36%
6.83% 6.95%
4.50% 5.13%
4.50% 5.09%
(0.55%) (1.05%)
337
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
7) RETIREMENT PLAN (continued)
B. Net Pension Liability (continued)
Pension Plan Fiduciary Net Position
Information about the pension plans' assets, deferred outflows of resources, liabilities, deferred inflows of
resources, and fiduciary net position are presented in CalPERS' audited financial statements, which are publicly
available reports that can be obtained at CalPERS' website under Forms and Publications, at
www.calpers.ca.gov. The plans' fiduciary net position and additions to/deductions from the plans' fiduciary net
position have been determined on the same basis used by the pension plan, which is the economic resources
measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and
payable in accordance with the terms of each plan. Investments are reported at fair value.
The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan
assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting
valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense
included as. assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In
addition, differences may result from early Comprehensive Annual Financial Report closing and final reconciled
reserves
C. Proportionate Share of Net Pension Liability
The following table shows the Plans' proportionate share of the net pension liability over the measurement
period.
Increase (Decrease)
Plan Total Plan Fiduciary Net Plan Net Pension
Miscellaneous Plan Pension Liability Position Liability
(a) (b) (c) = (a) -(b)
Balance at: 6/30/2013 (VD) $ 24,637,401 $ 18,584,288 $ 6,053,113
Balance at: 6/30/2014 (MD) {26, 103,564l {21,673,462} {4,430, 102l
Net Changes during 2013~14 $ {1,466,163l $ {3.089, 174l $ 1,623,011
-54-338
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
7) RETIREMENT PLAN (continued)
C. Proportionate Share of Net Pension Liability (continued)
Valuation Date (VD), Measurement Date (MD).
The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability.
The net pension liability of each of the Plans is measured as of June 30, 2014, and the total pension liability for
each Plan used to calculate the net pension liability was determined by an actuarial valuation as of
June 30, 2013 rolled forward to June 30, 2014 using standard update procedures. The City's proportion of the
net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the
fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report,
which is a publicly available report that can be obtained at CalPERS' website under Forms and Publications, at
www.calpers.ca.gov. The City's proportionate share of the net pension liability for each Plan as of June 30, 2013
and 2014 was as follows:
Proportionate Share -June 30, 2013
Proportionate Share -June 30, 2014
Change -Increase (Decrease)
Miscellaneous
0.18473%
0.17925%
(0.00548%)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City's proportionate share of the net pension liability for each Plan as of the
measurement date, calculated using the discount rate of 7.50 percent, as well as what the net pension liability
would be if it were calculated using a discount rate that is 1 percentage-point lower (6.50 percent) or
1 percentage-point higher (8.50 percent) than the current rate:
Plan
Miscellaneous Plan's Net
Pension Liability
Discount Rate - 1 %
(6.50%)
Current Discount
Rate (7.50%)
Discount Rate + 1 %
(8.50%)
$ 7,893,072 $ 4,430,102 $ 1,556,166
-55-339
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
7) RETIREMENT PLAN (continued)
C. Proportionate Share of Net Pension Liability (continued)
Subsequent Events
On January 27, 2015, the City contributed $3,600,000 to CalPERS to pay down its Net Pension Liability.
Recognition of Gains and Losses
Under GASS 68, gains and losses related to changes in total pension liability and fiduciary net position are
recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The
remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions
and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Difference between
projected and actual
earnings
All other amounts
5 year straight-line amortization
Straight-line amortization over the
average expected remaining service
lives of all members that are
provided with benefits (active,
inactive and retired) as of the
beginning of the measurement
period ·
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years
by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-
Employer Plan (PERF C).
The EARSL for the Plans for the 2013-14 measurement period is 3.8 years, which was obtained by dividing the
total service years of 460,700 (the sum of remaining service lifetimes of the active employees) by 122,789 (the
total number of participants: active, inactive, and retired). Note that inactive employees and retirees have
remaining service lifetimes equal to 0. Also note that total future service is based on the members' probability of
decrementing due to an event other than receiving a cash refund. ·
-56-340
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
7) RETIREMENT PLAN (continued)
D. Pension Expense and Deferred Ou'lflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2013), the net pension liability for the Miscellaneous Plan is
$6,053, 113, (the net pension liability of the aggregate plans as of June 30, 2013 is $3,276,668,431 ).
For the measurement period ending June 30, 2014 (the measurement date), the City's Miscellaneous First Tier
Plan incurred a pension expense of $419, 713 (the pension expense for the aggregate plans for the
measurement period is $239,824,465. A complete breakdown of the pension expense is as follows:
Miscellaneous Plan
Risk Pool Employer's Percentage of
Description Amounts Share Employer's Share
Service Cost $ 338,829,351 $ 779,377 0.23002%
Interest on the Total Pension Liability 921,162,366 1,834,011 0.19910%
Recogni.zed Differences between Expected and
Actual Experience N/A
Recogni.zed Changes of Assumptions N/A
Employee Contributions (159,834,203) (424,389) 0.26552%
Projected Earnings on Pension Plan Investments (678, 133,636) (1,385,228) 0.20427%
Recogni.zed Differences between Projected and
Actual Earnings on Plan Investments (182, 199,413) (372,180) 0.20427%
Other Changes in Fiduciary Net Position NIA
Recogni.zed Portion of Adjustment due to
Differences in Proportions 5,317 N/A
Recogni.zed Differences Between Contributions
and Proportionalte Share of Contributions {17.195! NIA
Subtotal: Employer's Share of Expense
Components $ 239,824,465 $ 419,713 0.17501%
Changes of Benefit Terms
Employer's Proportionate Share of
Pension Expense $ 419,713
Note: Plan administrative expenses are not displayed in the above pension expense table. Since the expected
investment return of 7.50 percent is net of administrative expenses, administrative expenses are excluded from
the above table, but implicitly included as part of investment earnings.
-57 -341
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
7) RETIREMENT PLAN (continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
~~~ .
As of June 30, 2014, the City has deferred outflows and deferred inflows of resources related to pensions as
follows:
Miscellaneous Plan
Deferred Outflows Deferred Inflows of
of Resources Resources
Differences between Expected and
Actual Experience $ -$ -
Changes of Assumptions --
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments -(1,488,720)
Adjustment due to Differences in
Proportions 14,887 -
Net Differences between the Employer's
Contributions and the Employer's
Proportionate Share of Contributions -(48, 146)
Pension Contributions Subsequent to
Measurement Date 4,490,960 -
Total $ 4,505,847 $ (1,536,866)
These amounts above are net of outflows and inflow recognized in the 2013-14 measurement period expense.
$4,490,960 reported as deferred outflows of resources related to contributions subsequent to the measurement
date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Amounts
reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future
pension expense as follows:
Miscellaneous Plan
Measurement Period Ended June 30: Deferred Outflows/(lnflows) of
Resources
2015 $ (366,863)
2016 (384,058)
2017 (385,122)
2018 (385,936)
E. Payable to the Pension Plan
At June 30, 2015, the City reported a payable of $39,498 for the outstanding amount of contributions to the
pension plan required for the year ended June 30, 2015.
-58-342
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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 CalPERS, 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 81.5% as of June 30, 2015. 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 CalPERS and adopts those benefits through
City resolution. CalPERS issues a Comprehensive Annual Financial Report (CAFR). The CAFR is issued
in aggregate and includes the sum of all CalPERS plans. Copies of the CalPERS CAFR may be obtained
from the CalPERS 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. 71 % of the annual covered payroll.
For 2015, the City's annual OPEB cost (expense) was $25,000 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
2015 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)
6/30/2015 $ 25,000 . 0% $ (109,000)
6/30/2014 168,000 494% (134,000)
6/30/2013 455,000 100%
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
8) OTHER POST EMPLOYMENT BENEFITS, (continued)
Annual OPES Cost and Net OPES Obligation Calculation:
The OPES Cost and Net OPES Obligation (Asset) for the fiscal year 2015 was as follows:
Annual required contribution
Add: Interest on net OPES obligation
Amortization of NOO
Annual OPES cost (expense)
Contributions made
Increase in net OPES obligation
Net OPES obligation (asset) -beginning of year
Net OPES obligation (asset) -end of year
Funded Status and Funding Progress
$
$
June 30, 2015
35,000
(10,000)
25,000
25,000
p34,000~
{109,000~
The funded status of the plan as of June 30, 2015, the most recent actuarial valuation applicable to 2015,
was as follows:
Actuarial Accrued Liability (AAL)
Actuarial Value of Plan Assets
Unfunded Actuarial Accrued Liability (Asset) (UAAL)
Funded Ratio (Actuarial Value of Plan Assets/AAL)
Covered Payroll (Active Plan Members)
UAAL as a Percentage of Covered Payroll
(Amounts in OOO's)
$ 1,493
$ 1,217
$ 276
$
81.5%
4,950
5.6%
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.
On October 9, 2015, the City contributed $644, 768 to CERBT to pay down the UAAL.
-60-344
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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
Actuarial Cost Method
Amortization· Method
Remaining Amortization Period
Actuarial Assumptions:
Investment Rate of Return
Projected Salary Increase
Health Care Trend Rate
General Inflation
9) CONDUIT DEBT -REVENUE BONDS
June 30, 2015
Entry Age Normal Cost Method
Level Percent of Payroll
15 years fixed (closed) period for plan
changes
7.25% Pre-funded
Aggregate Increases -3.25%
Merit Increases -CalPERS
1997-2007 Experience Study 4.5%
4.50%
3.00%
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, 2015, totaled $12,530,000.
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 LP., a California Limited
Partnership, to finance the Vintage Crest Senior Housing Project. The bonds outstanding at June 30,
2015, totaled $13,242,831.
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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, tile 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 $920,000 at June 30, 2015.
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 $4,940,000 at June 30, 2015.
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
· 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 $13,650,000 at June 30, 2015.
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 118 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 lines of coverage. The Authority 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.
B) Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective
adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Retrospective
adjustments are scheduled to continue indefinitely on coverage years 2012-13 and prior, until all claims
incurred during those coverage years are closed, on a pool-wide basis. This subsequent cost re-
allocation among members, based on actual claim development, can result in adjustments of either
refunds or additional deposits required. Coverage years 2013-14 and forward are not subject to routine
annual retrospective adjustment.
--63 -347
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
11) RISK MANAGEMENT (continued)
B) Self-Insurance Programs of the Authority (continued)
The total funding requirement for self-insurance programs is estimated using actuarial models and pre-
funded through the annual contribution. Costs are allocated to individual agencies based on exposure
(payroll) and experience (claims) relative to other members of the risk-sharing pool. Additional
information regarding the cost allocation methodology is provided below.
Liability
In the liability program claims are pooled separately between police and general government exposures.
(1) The payroll of each member is evaluated relative to the payroll of other members. A variable
credibility factor is determined for each member, which establishes the weight applied to payroll and the
weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to
$30,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the
first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer.
(4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation
within the first and second loss layers. For 2014-15 the Authority's pooled retention is $2 million per
occurrence, with reinsurance to $20 million, and excess insurance to $50 million. The Authority's
reinsurance contracts are subject to the following additional pooled retentions: (a) 50% of the $2.5 million
annual aggregate deductible in the $3 million xis $2 million layer, (b) 50% quota share of the $3 million
xis $2 million layer, and (c) $3 million annual aggregate deductible in the $5 million xis $10 million layer.
The overall coverage limit for each member, including all layers of coverage, is $50 million per
occurrence. Costs of covered claims for subsidence losses have a sub-limit of $30 million per
occurrence.
Workers' Compensation
In the workers' compensation program claims are pooled separately between public safety (police and
fire) and general government exposures. (1) The payroll of each member is evaluated relative to the
payroll of other members. A variable credibility factor is determined for each member, which establishes
the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of
losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the
pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs
from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool's total
incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed
based on the outcome of cost allocation within the firstand second loss layers.
For 2014-15 the Authority's pooled retention is $2 million per occurrence, with reinsurance to statutory
limits under California Workers' Compensation Law. Employer's Liability losses are pooled among
members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance
policy, and Employer's Liability losses from $5 million to $10 million are pooled among members.
-64-348
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
11) RISK MANAGEMENT (continued)
C) Purchased Insurance
Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program which is available through the
Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm
drains owned by the City. Coverage is on a claims-made basis. There is a $50,000 deductible. The
Authority has a limit of $50 million for the 3-year period from July 1, 2014 through July 1, 2017. Each
member of the Authority has a $10 million sub-limit during the 3-year term of the policy.
Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance protection
is underwritten by several insurance companies. City property is currently insured according to a
schedule of covered property submitted by the City to the Authority. City property currently has all-risk
property insurance protection in the amount of $49,834,749. There is a $5,000 deductible per occurrence
except for non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage
are paid annually and are not subject to retrospective adjustments.
Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The
fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to
retrospective adjustments.
0) Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or
judgments that exceeded pooled or insured coverage. There were also no significant reductions in
pooled or insured liability coverage in 2014-15.
-65-349
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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, granters,
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
In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions, the 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 spe'nt 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 City's governmental fund balances at June 30, 2015, are presented below:
Street and Assessment Parks/Public
General Traffic Safe!l Districts Facilities
Nonspendable:
Prepaid items $ 48,933 $ 10,156 $ $
Due from other funds and governments 10,252
Property held for resale 600,892
Restricted for:
Public services 21,631,221 5,095,593
Recreation services 4,325,509
Public safety
Low and moderate income housing
Committed to:
Library services
Assigned to:
Community/Engineering/Public Works
Capital projects
Unassigned 2,999,941
Total fund balances (deficit) $ 3,660,018 $ 21,641,377 $ 5,095,593 $ 4,325,509
(Continued on next page)
-66-350
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
12) CLASSIFICATION OF NET POSITION AND FUND BALANCE, (continued)
B) Fund Balance, (continued)
Nonspendable:
Prepaid items
Due from other funds and governments
Property held for resale
Restricted for:
Public services
Recreation services
Public safety
Low and moderate income housing
Committed to:
Library services
Assigned to:
Community/Engineering/Public Works
Capital projects
Unassigned
Total fund balances (deficit)
Los Angeles Low-Mod
Area of Income
Contribution Housing Asset
$ $
177,006
7,429,564
11,661,571
214, 116
$ 11,838,577 $ 7,643,680
-67-
Prop 18
Local Streets Community
and Roads Development
$ $
23,438
$ 23,438 $
(Continued on next page)
351
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
12) CLASSIFICATION OF NET POSITION AND FUND BALANCE, (continued)
B) Fund Balance, (continued)
Non major Total
Police Special Governmental Governmental
Endowment Facilities Fee Projects Funds Funds
Nonspendable:
Prepaid items $ $ $ $ $ 59,089
Due from other funds and governments 1,771,143 919,874 2,878,275
Property held for resale 55,573 8,086,029
Restricted for:
Public services 3,754,009 42,165,832
Recreation services 3,298,759 7,624,268
Public safety 257,276 257,276
Low and moderate income housing 4,311,283 4,525,399
Committed to:
Library services 711,399 711,399
Assigned to:
Community/Engineering/Public Works
Capital projects 11,782,961 23,719,941 6,718,663 42,221,565
Unassigned (1,427,564) (177,006) 1,395,371
Total fund balances (deficit) $ 13,554,104 $ (1,427,564) $ 24,639,815 $ 18,929,956 $ 109,924,503
Deficit Fund Balances
The following major governmental fund has a deficit at June 30. 2015:
Police Facilities Fees Capital Projects Fund $ (1,427,564)
The following non-major governmental fund has a deficit at June 30. 2015:
Tierra Rejada/Spring Road A.O.C. Special Revenue Fund $ (177,006)
Management expects these deficits to be eliminated through future revenues.
-68-352
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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 $5,572, 138. 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 SARA for the year ended June 30, 2015 (and subsequent years in
which the Agency is in operation) are subject to review by various State agencies and the County in
which the Agency resides. If any expenses incurred by the Agency are disallowed by the State agencies
or County, the City, acting as the 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 Agency expects such amounts, if any, to be immaterial. On February 12, 2015, the State of
California Department of Finance approved the Agency's Long Range Property/Management Plan.
-69-353
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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 SARA 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. The private-purpose trust fund keeps its activities under the accrual
method of accounting.
In accordance with AB 1484 and in compliance with the California Health & Safety Code, the City elected
to be Housing Successor to the housing activities and functions of the former Agency. Accordingly, all
housing assets, as defined by the Health and Safety Code Section 34176 (e), were transferred to the City
in a specially created fund shown as a major fund in 2015, named "Low-Mod Housing Asset Fund" in the
governmental funds financial statements.
-70-354
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK (SARA), (continued)
LONG TERM DEBT
The following is a schedule of changes in long-term liabilities for the year ended June 30, 2015:
Beginning Ending
Balance Increases Decreases Balance
Bonds payable:
1999 Tax allocation bonds $ 3,340,000 $ $ (3,340,000) $ $
2001 Tax allocation bonds 11,455,000 (11,455,000)
2006 Tax allocation bonds 11,540,000 (40,000) 11,500,000
2014 Tax allocation refunding bonds 13,420,000 13,420,000
Subtotal bonds payable 26,335,000 13,420,000 (14,835,000) 24,920,000
Plus/(less) deferred amounts:
2006 Bonds discount (244,049) 10,846 (233,203)
2014 Bonds premium 514,583 (14,702) 499,881
Successor agency
long-term liabilities $ 26,090,951 $ 13,934,583 $ (14,838,856) $ 25,186,678 $
Combined annual debt service requirements to maturity for all bonds are as follows:
Year Endin!,l Princieal Interest Total
2016 $ 765,000 $ 941,101 $ 1,706,101
2017 775,000 924,969 1,699,969
2018 795,000 904,704 1,699,704
2019 820,000 880,004 1,700,004
2020 695,000 853,554 1,548,554
2021-2025 3,885,000 3,850,013 7,735,013
2026-2030 4,655,000 3,040,769 7,695,769
2031-2035 6,185,000 2,092,730 8,277,730
2036-2039 6,345,000 570,172 6,915,172
Total $ 24,920,000 $ 14,058,016 $ 38,978,016
"
-71 -
Due wtthin
one ~ear
45,000
720,000
765,000
765,000
355
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
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 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 1999 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 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 SARA on February 1, 2012 as part of the former
Agency's dissolution in accordance with ABX1 26 and AB 1484. SARA is in compliance with the
covenants contained in debt indenture, which require the establishment of certain specific accounts for
the 1999 Bonds. In the current year the 1999 Bonds were refunded with the issuance of the 2014 Tax
Allocation .Refunding Bonds (2014 Bonds).
B) 2001 Tax Allocation Bonds
In December 2001, the 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. The 2001 Bonds were secured by all property tax increment revenue,
which were deposited in the 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 SARA on February 1, 2012 as part
of the former Agency's dissolution in accordance with AB X1 26 and AB 1484. SARA is in compliance
with the covenants contained in debt indentures, which require the establishment of certain specific
accounts for the 2001 Bonds. In the current year the 2001 Tax Allocation Bonds were refunded with the
issuance of the 2014 Bonds.
C) 2006 Tax Allocation Bonds
In 2006, the 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.
-72-356
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK (SARA), (continued)
LONG TERM DEBT, (continued)
C) 2006 Tax Allocation Bonds (Continued)
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 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 SARA on February 1, 2012 as part of the former Agency's dissolution in
accordance with AB X1 26 and AB 1484. SARA is in compliance with the covenants contained in the debt
indenture, which require the establishment of certain specific accounts for the 2006 Bonds.
D) 2014 Tax Allocation Bonds
In November 2014, SARA issued a $13,420,000 aggregated principal amount of Moorpark
Redevelopment Project 2014 Bonds. The purpose of the 2014 Bonds was to refund the 1999 Bonds and
the 2001 Bonds, previously issued by the former Agency. The 2014 Bonds bear interest at rates ranging
from 2.000% to 3.375% per annum, semi-annually on each April 1 and October 1 of each year,
commencing on April 1, 2015. The 2014 Bonds are payable from and secured by, the tax revenues to be
derived from taxes deposited into the Successor Agency's Redevelopment Obligation Retirement Fund
established pursuant to Health and Safety Code section 34170.5(a). SARA is in compliance with the
covenants contained in the debt indenture, which require the establishment of certain specific accounts
for the 2014 Bonds.
The aggregate difference in debt service between the refunding debt and the refunded debt is as follows:
Total cash flow requirement to service the old debt
Total cash flow requirement to service the new debt
Total cash flow difference
The economic gain calculation on the transaction is as follows:
Present value of total cash flow requirement to service the old debt
discounted at the effective interest rate of 3.0370324%
Present value of total cash flow requirement to service the new debt
discounted at the effective interest rate of 3.0370324%
$
$
Economic Gain (in present value dollars at date of refunding 11 /18/2014)
-73-
21,314,535
17,768,443
3,546,092
$ 16,636,405
13,866,099
$ 2,770,306
357
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2015
15) EMPLOYEES RETIREMENT PLAN
PARS Alternate Retirement System (ARS) (Plan)
The City currently offers an alternative plan for employees classified as part-time, seasonal or temporary
(PST). The plan is administered by the Public Agency Retirement Services (PARS) and is a deferred
compensation plan created in accordance with Internal Revenue Code Section IRC 457. Pursuant to the
IRC 457 subsection (g): all amounts of compensation deferred under the plan, all property, or rights are
solely the property and rights of the employee and beneficiaries of the plan. Deferred compensation
funds are not subject to claims of the City's general creditor; consequently the assets and related
liabilities of the plan are not included within the City's financial statements. The City contributes 3. 75%
percent of the employee's compensation. In addition, each participant is required to contribute 3.75% of
their salary. During the current fiscal year, the City contributed $8,673 to the plan.
16) RESTATEMENT OF NET POSITION
Change in Accounting Principle
As discussed in Note 1, the City implemented GASB Statement No. 68 effective July 1, 2014. GASB 68,
among other provisions, amended prior guidance with respect to the reporting of pensions. GASB 68,
establishes standards for measuring and recognizing liabilities, deferred outflows of resources, and
deferred inflows of resources, and expense/expenditures. For defined benefit pensions, the City's net
pension liability was not previously recorded on the statement of net position. GASB 68 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 Activities has been restated for changes related
to GASB 68 as follows:
Government-Wide Statements
Statement of Activities -Governmental Activities
Net position, beginning of year, prior to restatement $ 361,327,598
Restatement due to change iii accounting principle (5, 176,390)
Net position, beginning of year, as restated $ 356, 151,208
-74-358
REQUIRED SUPPLEMENTARY INFORMATION
359
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule -General Fund
Year Ended June 30, 2015
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Property Taxes
Current Secured $ 3,100,000 $ 3,100,000 $ 3,224,533 $ 124,533
Current Unsecured 115,000 115,000 98,963 (16,037)
Prior year Secured-Unsecured 10,000 10,000 4,421 (5,579)
Supplemental Secured-Unsecured 35,000 35,000 79,649 44,649
Real Property Transfer Tax 175,000 175,000 258,446 83,446
Homeowners Property Exemption 40,000 40,000 35,514 (4,486)
Parcel Tax 220,000 220,000 272,101 52, 101
Property Taxes -VLF 3,000,000 3,084,000 3,084,148 148
Other Property Taxes 125,000 125,000 297,794 172,794
Total Property Taxes 6,820,000 6,904,000 7,355,569 451,569
Sales Taxes
Sales and use tax 2,800,000 2,800,000 2,749,320 (50,680)
Sales tax compensation 900,000 1,357,000 896,527 {460,473~
Total Sales Taxes 3,700,000 4,157,000 3,645,847 {511, 153}
Franchise Fees
Cable TV 425,000 425,000 435,493 10,493
Edison 300,000 300,000 313,086 13,086
Gas 90,000 90,000 96,257 6,257
Oil 4,197 4,197
PEG Fees 50,000 50,000 54,827 4,827
GI Rubbish 200,000 200,000 194,968 (5,032)
Moorpark Rubbish 120,000 120,000 128,260 8,260
Landfill local impact fee 55,000 55,000 48,261 (6,739)
CIWMP Fees 10,000 10,000 8,919 {1,081}
Total Franchise Fees 1,250,000 1,250,000 1,284,268 34,268
Licenses and Permits
Bicycle Permits 2 2
Business Registration 125,000 125,000 125,156 156
Filming Permits 10,000 10,000 8,600 (1,400)
NPDES Business Inspection Fees 8,000 8,000 9,576 1,576
Total License~ and Permits 143,000 143,000 143,334 334
(Continued on next page)
-75-360
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule -General Fund (continued)
Year Ended June 30, 2015
Bud9eted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Fines and Forfeitures
Municipal Codes Fines 250,000 250,000 206,635 (43,365)
Animal Control Fines 1,000 1,000 1,515 515
Forfeitures and Penalties 1,000 1,000 (1,000)
Total Fines and Forfeitures 252,000 252,000 208,150 (43,850)
Use of Money and Property
Investment Earnings 425,000 425,000 252,423 (172,577)
Rents and Concessions 125,000 125,000 122,970 (2,030)
Rents Tenants 142,600 142,600 142,604 4
Other earnings and rents 6,000 6,000 7,455 1,455
Total Use of Money and Property 698,600 698,600 525,452 (173, 148)
Charges for Services
Other Administrative Services 100,000 100,000 158,779 58,779
Administrative Fees 250,000 250,000 250,000
Administrative Fees -CFD 51,000 51,000
Park and Facility Use Fee 103,100 103, 100 151,967 48,867
Contract Class Registration Fees 238,000 238,000 225,470 (12,530)
League Fees 144,960 144,960 101,014 (43,946).
Recreation Events Fees 313,970 313,970 248,854 (65, 116)
Other Recreation Fees 5,000 5,000 12,044 7,044
Advertising in Brochure 12,000 12,000 12,070 70
Other Community Services Fees 158,000 21,300 3,038 (18,262)
Photocopying 1,000 1,000 375 (625)
Sale of Documents 1,000 1,000 47 (953)
Special Police Department Services 40,000 40,000 45,620 5,620
NSF Fees and Charges 1,500 1,500 645 (855)
Planning Time Charges 20,000 20,000 15,441 (4,559)
Total Charges for Services 1,388,530 1,251,830 1,276,364 24,534
Intergovernmental
Motor Vehicle in Lieu 16,000 16,000 15,399 (601)
Other State Funds 20;000 20,000 166,619 146,619
County Grants 40,000 52,131 31,813 (20,318)
Other Federal Revenue Grants 15,000 15,000 15,584 584
Total Intergovernmental 91,000 103,131 229,415 126,284
(Continued on next page)
-76-361
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule -General Fund (continued)
Year Ended June 30, 2015
Budaeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Other Revenues
Contributions-Donations 10,000 11,500 21,925 10,425
Revenues not classified elsewhere 10,000 10,000 9,240 (760)
Expense Reimursements 243,900 243,900 240,594 (3,306)
Restitutions-Insurance Proceeds 20,000 20,000 22,015 2,015
Total Other Revenues 283,900 285,400 293,774 8,374
Total revenues 14,627,030 15,044,961 14,962,173 (82,788)
EXPENDITURES
General government 3,463,347 4,745,425 2,495,675 2,249,750
Public safety 6,843,372 6,843,372 6,410,918 432,454
Public services 2,151,156 2,761,219 2,320,888 440,331
Parks and recreation 1,725,853 2,144,131 1,822,537 321,594
Capital Outlay 619,525 1,205,093 370,007 835,086
Total expenditures 14,803,253 17,699,240 13,420,025 4,279,215
Excess of revenues
over expenditures {176,223} {2,654,279} 1,542, 148 4,196,427
OTHER FINANCING SOURCES (USES)
Transfers in 2,892,546 2,892,546
Transfers out (2,503,354) (3,226, 175) (4,410,575) (1, 184,400)
Total other financing (uses) (2,503,354) (333,629) (1,518,029) (1,184,400)
Net change in fund balance (2,679,577) (2,987,908) 24,119 3,012,027
Fund balance, beginning of year 3,635,899 3,635,899 3,635,899
Fund balance, end of year $ 956,322 $ 647,991 $ 3,660,018 $ 3,012,027
-77-362
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule -Street and Traffic Safety -Special Revenue Fund
Year Ended June 30, 2015
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property
Investment Earnings $ 243,800 $ 243,800 $ 242,935 $ (865)
Rents Tenants 19,800 19,800
Total Use of Money and Property 243,800 243,800 262,735 18,935
Charges for Services
Other Development Fees 1,568,000 1,568,000 2,921,706 1,353,706
Total Charges for Services 1,568,000 1,568,000 2,921,706 1,353,706
Other revenue 730 730
Total revenues 1,811,800 1,811,800 3,185,171 1,373,371
EXPENDITURES
Public services 411,440 507,126 419,409 87,717
Capital Outlay 3,018,047 3,718,834 850,679 2,868,155
Total expenditures 3,429,487 4,225,960 1,270,088 2,955,872
Net change in fund balance (1,617,687) (2,414,160) 1,915,083 4,329,243
Fund balance, beginning of year 19,726,294 19,726,294 19,726,294
Fund balance, end of year $ 18,108,607 $ 17,312,134 $ 21,641,377 $ 4,329,243
-78-363
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule -Assessments Districts -Special Revenue Fund
Year Ended June 30, 2015
Bud9eted Amounts Actual Variance with
Ori9inal Final Amounts Final Bud9et
REVENUES
Use of Money and Property $ 72,700 $ 72,700 $ 58,864 $ (13,836)
Charges for Services 8,100 8,100 168,801 160,701
Maintenance Assessments 1,965,237 1,965,237 2,487,047 521,810
Other Revenues 5,000 5,000 24,812 19,812
Total revenues 2,051,037 2,051,037 2,739,524 688,487
EXPENDITURES
Public Services 411,497 414,542 391,793 22,749
Parks and Recreation 4,863,766 5,396,660 3,897,395 1,499,265
Capital Outlay 11,000 26,675 20,813 5,862
Total expenditures 5,286,263 5,837,877 4,310,001 1,527,876
Excess (deficiency) of revenues
over (under) expenditures (3,235,226) (3, 786,840) (1,570,477) 2,216,363
OTHER FINANCING SOURCES (USES)
Transfers in 1,745,748 1,929,348 1,502,264 (427,084)
Total other financing sources 1,745,748 1,929,348 1,502,264 (427,084)
Net change in fund balance (1,489,478) (1,857,492) (68,213) 1,789,279
Fund balance, beginning of year 5,163,806 5,163,806 5,163,806
Fund balance, end of year $ 3,674,328 $ 3,306,314 $ 5,095,593 $ 1,789,279
-79-364
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule -Parks/Public Facilities -Special Revenue Fund
Year Ended June 30, 2015
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property $ 24,100 $ 24,100 $ 55,038 $ 30,938
Charges for Services 1,236,100 1,236,100 2,314,795 1,078,695
Total revenues 1,260,200 1,260,200 2,369,833 1,109,633
EXPENDITURES
Public services 4,138 (4,138)
Parks and Recreation 70,100 67,100 67,100
Capital Outlay 336,800 376,547 255,665 120,882
Total expenditures 406,900 443,647 259,803 183,844
Net change in fund balance 853,300 816,553 2,110,030 1,293,477
Fund balance, beginning of year 2,215,479 2,215,479 2,215,479
Fund balance, end of year $ 3,068,779 $ 3,032,032 $ 4,325,509 $ 1,293,477
-80-365
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule -Los Angeles Area of Contribution -Special Revenue Fund
Year Ended June 30, 2015
Bud51eted Amounts Actual Variance with
Ori51inal Final Amounts Final Bud51et
REVENUES
Use of Money and Property
Investment Earnings $ 175,000 $ 175,000 $ 162,759 $ (12,241)
Total Use of Money and Property 175,000 175,000 162,759 (12,241)
Charges for Services
Area of Contribution Fee 702,000 702,000 1,314,415 612,415
Total Charges for Services 702,000 702,000 1,314,415 612,415
Total revenues 877,000 877,000 1,477,174 600,174
EXPENDITURES
Public services 18,177 44,721 32,708 12,013
Capital Outlay 3,717,476 6,782,500 1,370,881 5,411,619
Total expenditures 3,735,653 6,827,221 1,403,589 5,423,632
Net change in fund balance (2,858,653) (5,950,221) 73,585 6,023,806
Fund balance, beginning of year 11,764,992 11,764,992 11,764,992
Fund balance, end of year $ 8,906,339 $ 5,814,771 $ 11,838,577 $ 6,023,806
-81 -366
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule -Low-Mod Income Housing Asset Fund -Special Revenue Fund
Year Ended June 30, 2015
Bud9eted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property $ 3,000 $ 3,000 $ 2,677 $ (323)
Charges for Services 19,800 19,800 19,800
Total revenues 22,800 22,800 22,477 (323)
EXPENDITURES
General Government 115 115 100 15
Public services 49,510 59,660 26,065 33,595
Debt Service:
Interest 3,000 3,000 4,476 (1,476)
Total expenditures 52,625 62,775 30,641 32,134
Net change in fund balance (29,825) (39,975) (8, 164) 31,811
Fund balance, beginning of year 7,651,844 7,651,844 7,651,844
Fund balance, end of year $ 7,622,019 $ 7,611,869 $ 7,643,680 $ 31,811
-82 -367
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule -Prop 1 B Local Streets and Roads -Special Revenue Fund
Year Ended June 30, 2015
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ $ $ 13,746 $ 13,746
Total revenues 13,746 13,746
EXPENDITURES
Capital outlay 1,091,037 1,091,959 1,091,959
Total expenditures 1,091,037 1,091,959 11091,959
Net change in fund balance (1,091,037) (1,091,959) 13,746 1,105,705
Fund balance, beginning of year 9,692 9,692 9,692
Fund balance, end of year $ {1,081,345) $ {1,082,267! $ 23,438 $ 1, 105,705
-83-368
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule -Community Development -Special Revenue Fund
Year Ended June 30, 2015
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Licenses and permits $ 584,900 $ 584,900 $ 1, 106,630 $ 521,730
Fines and forfeitures 5,950 5,950
Charges for services 833,700 833,700 1,104,622 270,922
Other revenue 71,950 71,950
Total revenues 1,418,600 1,418,600 2,289,152 870,552
EXPENDITURES
Public services 2,339,068 2,840,798 3,238,766 {397,968)
Total expenditures 2,339,068 2,840,798 3,238,766 {397,968)
Excess (deficiency) of revenues
over (under) expenditures {920,468) {1,422,198) {949,614) 472,584
OTHER FINANCING SOURCES (USES)
Transfers in 857,606 1,359,336 949,597 {409,739)
Total other financing sources 857,606 1,359,336 949,597 {409,739)
Net change in fund balance (62,862) (62,862) (17) 62,845
Fund balance, beginning of year 17 17 17
Fund balance, end of year $ {62,845) $ {62,845) $ $ 62,845
-84-369
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule -Endowment -Special Revenue Fund
Year Ended June 30, 2015
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 122,000 $ 122,000 $ 187,704 $ 65,704
Charges for services 1,587,000 1,587,000 4,897,921 3,310,921
Intergovernmental 662,314 2,142,717 1,480,403
Other revenue 29 29
Total revenues 1,709,000 2,371,314 7,228,371 4,857,057
EXPENDITURES
Public services 121,047 362,056 182,040 180,016
Capital outlay 285,173 1,038,375 648,412 389,963
Total expenditures 406,220 1,400,431 830,452 569,979
Net change in fund balance 1,302,780 970,883 6,397,919 5,427,036
Fund balance, beginning of year 7,156,185 7,156,185 7,156,185
Fund balance, end of year $ 8,458,965 $ 8,127,068 $ 13,554,104 $ 5,427,036
-85--370
City of Moorpark
Required Supplementary Information
Other Post-Employment Benefits -Schedule of Funding Progress
Year Ended June 30, 2015
Schedule of Funding Progress for MRHP (Amounts in OOO's)
Entry age Unfunded
Actuarial Actuarial
Actuarial
Valuation Date
Actuarial Value Accrued Liability Accrued Liability Funded Ratio Annual Covered
6/30/2010
6/30/2013
6/30/2015
of Assets (a) (b) (b-a) (alb) Payroll (c)
$ 487
877
1,217
$ 590 $
863
1,493
103
(14)
276
82.5%
101.6%
81.5%
$ 5,066
4,890
4,950
UAALas a% of
Covered Payroll
((b-a)lc)
2.0%
-0.3%
5.6%
GASB 45 was implemented prospectively in fiscal year 2009. There were no previous actuarial valuations.
-86-371
City of Moorpark
Required Supplementary Information
Schedule of the City's Proportionate Share of the Plan's Net Pension Liability
and Related Ratios as of the Measurement Date -Last 10 Years*
Year Ended June 30, 2015
Plan's Proportion of the Net Pension Liability4
Plan's Proportionate Share of the Net Pension Liability
Plan's Covered-Employee Payroll 1
Plan's Proportionate Share of the Net Pension Liability as a percentage of
its Covered-Employee Payroll
Plan's Proportion of the Fiduciary Net Position2
Plan's Share of Risk Pool Fiduciary Net Position 2
Plan's Additional Payments to Side Fund During Measurement Period
Plan's Proportionate Share of the Fiduciary Net Position (sum of the two
preceding lines)
Plan's Proportionate Share of the Fiduciary Net Position as a percentage of
the Plan's Total Pension Liability
Plan's Proportionate Share of Aggregate Employer Contributions 3
Miscellaneous
Measurement Date
6/30/2014
0.07120%
$ 4,430,102
$ 5,084,665
87.13%
0.002%
$ 21,673,462
$
$ 21,673,462
83.03%
$ 586,086
1Covered-Employee Payroll represented above is based on the total payroll of employees that are
provided pensions through the pension plan in accordance with GASB 68.
2The term Fiduciary Net Position (FNP) as used in this line denotes the aggregate risk pool's FNP at
June 30, 2014 less the sum of all employers' additional side fund contributions made during the
measurement period.
3rhe plan's proportionate share of aggregate contributions may not match the actual contributions
made by f.he employer during the Measurement Period. The plan's proportionate share of aggregate
contributions is based on the plan's proportion of Fiduciary Net Position shown on line 5 of the table
above as well as any additional side fund (or unfunded liability) contributions made by the employer
during the measurement period.
4Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both
the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.
*Measurement period 2013-14 (fiscal year 2015) was the 1st year of implementation, therefore, only
one year is shown.
-87-372
City of Moorpark
Required Supplementary Information
Schedule of Plan's Contributions -Last 10 Years*
Year Ended June 30, 2015
Actuarially Determined Contribution
Contributions in Relation to the Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered-Employee Payroll 1
Contributions as a Percentage of Covered-Employee Payroll
Miscellaneous
Mesurement Period
Fiscal Year
2013-14
$ 536,085
(536,085)
$
$ 5,084,665
10.54%
1Covered-Employee Payroll represented above is based on the total payroll of employees that
are provided pensions through the pension plan in accordance with GASB 68.
*Measurement period 2013-14 (fiscal year 2015) was the 1st year of implementation, therefore,
only one year is shown.
Notes to Schedule:
Change in Benefit Terms: None
Change in Assumptions: None
-88-373
City of Moorpark
Notes to the Required Supplementary Information
Year Ended June 30, 2015
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. Throt:Jghout the year, the City
Council made several supplementing budgetary adjustments to various funds. These adjustments
resulted in a net appropriation increase of $32,773,003. This increase resulted primarily from additional
appropriations to various construction in progress projects, acquisition of property, prepayments of certain
liabilities, bond refunding and re-budgeted projects and amounts carried over from Fiscal Year 2013/14
as continuing appropriations.
The Community Development Fund presents total budgeted expenditures of $2,840,798, total actual
expenditures of $3,238,766, and total excess of expenditures over budgeted amounts of $(397,968).
In the current year the City did not budget for its Special Projects -Major Capital Projects fund.
-89-374
SUPPLEMENTARY INFORMATION
375
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376
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, 2015
REVENUES
Use of money and property
Investment Earnings
Total Use of Money and Property
Charges for Services
Police Facilities Fee
Total Maintenance Assesment
Total revenues
EXPENDITURES
Total expenditures
Net change in fund balance
Fund balance (deficit), beginning of year
$
Budgeted Amounts
Original Final
$ 700 $
700
153,000 153,000
153,000 153,000
153,000 153,700
153,000 153,700
(1,648,181) (1,648,181)
Actual
Amounts
Variance with
Final Budget
689 _$;....._ _ ____.(.;_11J...)
689 (11)
219,928 66,928
219,928 66,928
220,617 66,917
220,617 66,917
(1,648,181)
Fund balance (deficit), end of year $ (1,495,181) $ (1,494,481) $ (1,427,564) =$===6=6,=9=17=
-90-377
City of Moorpark
Non-Major Governmental Funds
June 30, 2015
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.
Tierra Rejada/Spring Road A.O.C 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. The City does not present a Budget to Actual schedule for this
fund.
Casey/Gabbert Road A.O.C 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.C 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 BC 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.
-91 -378
City of Moorpark
Non-Major Governmental Fupds (continued)
June 30, 2015
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. 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.
-92-379
City of Moorpark
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2015
SEecial Revenue
City
Library Traffic Affordable
Services Safety Housin!i!
ASSETS
Cash and investments $ 722,344 $ 246,191 $ 4,333,366
Receivables:
Accounts 428 24,455 12,297
Notes and loans 126,869
Property held for resale 55,573
Total assets $ 722,772 $ 270,646 $ 4,528,105
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 11,367 $ 13,370 $ 27,099
Due to other funds
Unearned revenues
Total liabilities 11,367 13,370 27,099
Deferred inflows of resources:
Unavailable revenues 6 7,281
Deferred loans 126,869
Total deferred inflows of resources 6 134, 150
Fund balances:
Nonspendable 55,573
Restricted 257,276 4,311,283
Committed 711,399
Assigned
Unassigned
Totcil fund balances (deficit) 711,399 257,276 4,366,856
Total liabilities, deferred inflows of
resources and fund balances $ 722,772 $ 270,646 $ 4,528,105
-93-380
$
$
$
$
Tierra Rejada/
Spring Road
A.O.C.
177,006.
177,006
(177,006)
(177,006)
Special Revenue
Casey/Gabbert
A.O.C.
$ 94,823
111
"$ 94,934
$
94,934
94,934
$ 94,934
$
$
$
$
Freemount
Storm Drain
A.O.C.
15,876
19
15,895
15,895
15,895
15,895
-94-
Continued
381
City of Moorpark
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2015
Seecial Revenue
Art State and
State Gas in Public Federal
Tax Places Assistance
ASSETS
Cash and investments $ 1, 115,534 $ 3,295,925 $ 895,687
Receivables:
Accounts 188,482 3,484 343,998
Notes and loans
Property held for resale
Total assets $ 1,304,016 $ 3,299,409 $ 1,239,685
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 9,058 $ 650 $ 53,220
Due to other funds
Unearned revenues 6,384 695
Total liabilities 15,442 650 53,915
Deferred inflows of resources:
Unavailable revenues
Deferred loans
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted 1,288,574 3,298,759 1,185,770
Committed
Assigned
Unassigned
Total fund balances (deficit) 1,288,574 3,298,759 1, 185,770
Total liabilities, deferred inflows of
resources and fund balances $ 1,304,016 $ 3,299,409 $ 1,239,685
-95-382
Continued
S~ecial Revenue Total
Local
Transportation Solid Special
Transit Waste Revenue
$ $ 1,008,470 $ 11,728,216
286,820 26,548 886,642
126,869
55,573
$ 286,820 $ 1,035,018 $ 12,797,300
$ 60,021 $ 24,001 $ 198,786
10,252 187,258
7,079
70,273 24,001 393,123
58,728 66,015
126,869
58,728 192,884
55,573
157,819 1,011,017 11,621,327
711,399
(177,006)
157,819 1,011,017 12,211,293
$ 286,820 $ 1,035,018 $ 12,797,300
-96-383
City of Moorpark
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2015
Capital Projects
Capital City Hall
Projects Building
ASSETS
Cash and investments $ 378,076 $ 3,675,686
Receivables:
Accounts 215 4,327
Notes and loans
Property held for resale
Total assets $ 378,291 $ 3,680,013
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ $ 17,783
Due to other funds
Unearned revenues
Total liabilities 17,783
Deferred inflows of resources:
Unavailable revenues
Deferred loans
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Committed
Assigned 378,291 3,662,230
Unassigned
Total fund balances (deficit) 378,291 3,662,230
Total liabilities, deferred inflows of
resources and fund balances $ 378,291 $ 3,680,013
-97-384
Continued
CaEital Projects Total Total
Capital Non Major
Equipment Projects Governmental
ReElacement Funds Funds
$ 2,803,445 $ 6,857,207 $ 18,585,423
3,233 7,775 894,417
126,869
55,573
$ 2,806,678 $ 6,864,982 $ 19,662,282
$ 128,536 $ 146,319 $ 345,105
187,258
7,079
128,536 146,319 539,442
66,015
126,869
192,884
55,573
11,621,327
711,399
2,678,142 6,718,663 6,718,663
(177,006)
2,678,142 6,718,663 18,929,956
$ 2,806,678 $ 6,864,982 $ 19,662,282
-98-385
City of Moorpark
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
Non-Major Governmental Funds
Year Ended June 30, 2015
Seecial Revenue
City
Library Traffic Affordable
Services Safe~ Housine
REVENUES
Taxes $ 833,531 $ $
Fines and forfeitures 20,273 149,915
Use of money and property 5,369 2,645 50,011
Charges for services 22,363 453,010
Intergovernmental
Other revenue 38,353
Total revenues 881,536 152,560 541,374
EXPENDITURES
Current:
Public safety 274,514
Public services 868,532 380,402
Parks and recreation
Capital Outlay
Total expenditures 868,532 274,514 380,402
Excess (deficiency) of revenues
over (under) expenditures 13,004 ~121,954~ 160,972
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Net change in fund balances 13,004 (121,954) 160,972
Fund balances (deficit), beginning of year 698,395 379,230 4,205,884
Fund balances (deficit), end of year $ 711,399 $ 257,276 $ 4,366,856
-99-386
$
$
Tierra Rejada/
Spring Road
A.O.C.
(177,006)
(177,006)
Special Revenue
Casey/Gabbert
A.0.C.
$
$
1,085
2,030
3,115
3,115
3,115
91,819
94,934
$
$
Freemount
Storm Drain
A.O.C.
181
181
181
181
15,714
15,895
-100-
Continued
387
City of Moorpark
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
Non-Major Governmental Funds
Year Ended June 30, 2015
seecial Revenue
Art State and
State in Public Federal
Gas Tax Places Assistance
REVENUES
Taxes $ $ $
Fines and forfeitures
Use of money and property 13,338 35,223 13, 159
Charges for services 784,386
Intergovernmental 1,051,281 1,167,587
Other revenue 7,430 8,119
Total revenues 1,072,049 819,609 1,188,865
EXPENDITURES
Current:
Public safety 104,333
Public services 792,384 782,502
Parks and recreation 12,382
Capital Outlay 831 125,743 92,366
Total expenditures 793,215 138, 125 979,201
Excess (deficiency) of revenues
over (under) expenditures 278,834 681,484 209,664
OTHER FINANCING SOURCES (USES)
Transfers out ~62,508}
Total other financing sources (uses) ~62,508}
Net change in fund balances 216,326 681,484 209,664
Fund balances (deficit), beginning of year 1,072,248 2,617,275 976, 106
Fund balances (deficit), end of year $ 1,288,574 $ 3,298,759 $ 1,185,770
-101-388
Continued
Seecial Revenue Total
Local Special
Transportation Solid Revenue
Transit Waste Funds
$ $ 286,373 $ 1,119,904
170, 188
828 11,896 133,735
69,414 4,320 1,335,523
633,864 19,440 2,872,172
53,902
704,106 322,029 5,685,424
378,847
683,440 345,160 3,852,420
12,382
218,940
683,440 345,160 4,462,589
20,666 (23,131) 1,222,835
~62,508~
(62,508)
20,666 (23,131) 1,160,327
137, 153 1,034,148 11,050,966
$ 157,819 $ 1,011,017 $ 12,211,293
-102-389
City of Moorpark
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
Non-Major Governm~tal Funds
Year Ended June 30, 2015
Capital Projects
Capital City Hall
Projects Building
REVENUES
Taxes $ 282,731 $
Fines and forfeitures
Use of money and property 1,855 41,816
Charges for services
Intergovernmental
Other revenue
Total revenues 284,586 41,816
EXPENDITURES
Current:
Public safety
Public services
Parks and recreation
Capital Outlay 25,072
Total expenditures 25,072
Excess (deficiency) of revenues
over (under) expenditures 284,586 16,744
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Net change in fund balances 284,586 16,744
Fund balances (deficit), beginning of year 93,705 3,645,486
Fund balances (deficit), end of year $ 378,291 $ 3,662,230
-103-390
Continued
Capital Projects Total Total
Capital Nonmajor
Equipment Projects Governmental
Re~lacement Funds Funds
$ $ 282,731 $ 1,402,635
170,188
39, 144 82,815 216,550
377,351 377,351 1,712,874
2,872,172
53,902
416,495 742,897 6,428,321
378,847
3,852,420
12,382
132,401 157,473 376,413
132,401 157,473 4,620,062
284,094 585,424 1,808,259
(62,508)
~62,508~
284,094 585,424 1,745,751
2,394,048 6,133,239 17,184,205
$ 2,678,142 $ 6,718,663 $ 18,929,956
\
-104-391
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual -Library Services -Special Revenue Fund
Year Ended June 30, 2015
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes $ 775,000 $ 775,000 $ 833,531 $ I 58,531
Fines and forfeitures 25,000 25,000 20,273 (4,727)
Use of money and property 3,000 3,000 5,369 2,369
Charges for services 21,000 21,000 22,363 1,363
Total revenues 824,000 824,000 881,536 57,536
EXPENDITURES
Current:
Public services 909,442 948,459 868,532 79,927
Total expenditures 909,442 948,459 868,532 79,927
Net change in fund balance (85,442) (124,459) 13,004 137,463
Fund balance, beginning of year 698,395 698,395 698,395
Fund balance, end of year $ 612,953 $ 573,936 $ 711,399 $ 137,463
-105-392
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual -Traffic Safety -Special Revenue Fund
Year Ended June 30, 2015
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Fines and forfeitures $ 155,000 $ 155,000 $ 149,915 $ (5,085)
Use of money and property 7,000 7,000 2,645 !4,355!
Total revenues 162,000 162,000 152,560 !9,440!
EXPENDITURES
Public safety 258,427 307,499 274,514 32,985
Total expenditures 258,427 307,499 274,514 32,985
Net change in fund balance (96,427) (145,499) (121,954) 23,545
Fund balance, beginning of year 379,230 379,230 379,230
Fund balance, end of year $ 282,803 $ 233,731 $ 257,276 $ 23,545
-106--393
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, 2015
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property $ 41,500 $ 41,500 $ 50,011 $ 8,511
Charges for Services 421,300 421,300 453,010 31,710
Other Revenues 38,353 38,353
Total revenues 462,800 462,800 541,374 78,574
EXPENDITURES
Public services 234,252 337,066 380,402 (43,336)
Capital Outlay 3,944
Total expenditures 238,196 337,066 380,402 !43,336}
Net change in fund balance 224,604 125,734 160,972 35,238
Fund balance, beginning of year 4,205,884 4,205,884 4,205,884
Fund balance, end of year $ 4,430,488 $ 4,331,618 $ 4,366,856 $ 35,238
-107-394
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, 2015
Bud9et Amounts Actual Variance with
Ori9inal Final Amounts Final Budaet
REVENUES
Use of money and property $ 15,000 $ 15,000 $ 13,338 $ (1,662)
Intergovernmental 946,400 946,400 1,051,281 104,881
Other revenue 2,000 2,000 7,430 5,430
Total revenues 963,400 963,400. 1,072,049 108,649
EXPENDITURES
Public services 800,545 934,696 792,384 142,312
Capital outlay 632,664 647,411 831 646,580
Total expenditures 1,433,209 1,582,107 793,215 788,892
Excess (deficiency) of revenues
over (under) expenditures {469,809) {618,707) 278,834 897,541
OTHER FINANCING SOURCES (USES)
Transfers out {100,000) {62,508) {62,508)
Total other financing uses {100,000) {62,508) {62,508)
Net change in fund balance (569,809) (681,215) 216,326 897,541
Fund balance, beginning of year 1,072,248 1,072,248 1,072,248
Fund balance, end of year $ 502,439 $ 391,033 $ 1,288,574 $ 897,541
-108-395
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, 2015
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 30,000 $ 30,000 $ 35,223 $ 5,223
Charges for services 514,000 514,000 784,386 270,386
Total revenues 544,000 544,000 819,609 275,609
EXPENDITURES
Parks and recreation 7,089 10,307 12,382 (2,075)
Capital outlay 269,800 278,499 125,743 152,756
Total expenditures 276,889 288,806 138,125 150,681
Net change in fund balance 267,111 255,194 681,484 426,290
Fund balance, beginning of year 2,617,275 2,617,275 2,617,275
Fund balance, end of year $ 2,884,386 $ 2,872,469 $ 3,298,759 $ 426,290
-109-396
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, 2015
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ $ 3,000 $ 13,159 $ 10,159
Intergovernmental 4,086,751 4,226,456 1,167,587 (3,058,869)
Other revenue 8,119 8,119
Total revenues 4,086,751 4,229,456 1,188,865 (3,040,591)
EXPENDITURES
Public safety 130,000 130,000 104,333 25,667
Public services 715,358 948,829 782,502 166,327
Capital outlay 3,376,830 3,634,906 92,366 3,542,540
Total expenditures 4,222,188 4,713,735 979,201 3,734,534
Net change in fund balance (135,437) (484,279) 209,664 693,943
Fund balance, beginning of year 976,106 976,106 976,106
Fund balance, end of year $ 840,669 $ 491,827 $ 1,185,770 $ 693,943
-110-397
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, 2015
Budset Amounts Actual Variance with
Orisinal Final Amounts Final Bud9et
REVENUES
Use of money and property $ 1,000 1,000 $ 828 $ (172)
Charges for services 65,000 65,000 69,414 4,414
Intergovernmental 1,016,477 1,066,477 633,864 ~432,613)
Total revenues 1,082,477 1,132,477 704,106 1428,371)
EXPENDITURES
Public services 1,096,471 1,233,542 683,440 550,102
Total expenditures 1,096,471 1,233,542 683,440 550,102
Net change in fund balance (13,994) (101,065) 20,666 121,731
Fund balance, beginning of year 137,153 137,153 137,153
Fund balance, end of year $ 123,159 $ 36,088 $ 157,819 $ 121,731
-111-398
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual -Solid Waste -Special Revenue Fund
Year Ended June 30, 2015
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes $ 285,000 $ 285,000 $ 286,373 $ 1,373
Use of money and property 11,896 11,896
Charges for services 2,700 2,700 4,320 1,620
Intergovernmental 20,144 20,144 19,440 ~704)
Total revenues 307,844 307,844 322,029 14,185
EXPENDITURES
Public services 317,234 373,642 345,160 28,482
Total expenditures 317,234 373,642 345,160 28,482
Net change in fund balance (9,390) (65,798) (23, 131) 42,667
Fund balance, beginning of year 1,034,148 1,034,148 1,034,148
Fund balance, end of year $1,024,758 $ 968,350 $1,011,017 $ 42,667
-112-399
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budgetand Actual -City Hall Building-Capital Projects Fund
Year Ended June 30, 2015
Bud9et Amounts Actual Variance with
Ori9inal Final Amounts Final Bud9et
REVENUES
Use of money and property $ 45,000 $ 45,000 $ 41,816 $ {3, 184)
Total revenues 45,000 45,000 41,816 {3. 184)
EXPENDITURES
Capital outlay 3,443,674 3,414,788 25,072 3,389,716
Total expenditures 3,443,674 3,414,788 25,072 3,389,716
Net change in fund balance (3,398,674) (3,369,788) 16,744 3,386,532
Fund balance, beginning of year 3,645,486 3,645,486 3,645,486
Fund balance, end of year $ 246,812 $ 275,698 $ 3,662,230 $ 3,386,532
-113-400
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual -Equipment Replacement -Capital Projects Fund
Year Ended June 30, 2015
Bud9et Amounts Actual Variance with
Ori9inal Final Amounts Final Bud9et
REVENUES
Use of money and property $ 2,500 $ 2,500 $ 39,144 $ 36,644
Charges for services 377,351 377,351
Total revenues 2,500 2,500 416,495 413,995
EXPENDITURES
Capital outlay 160,000 245,000 132,401 112,599
Total expenditures 160,000 245,000 132,401 112,599
Net change in fund balance (157,500) (242,500) 284,094 526,594
Fund balance, beginning of year 2,394,048 2,394,048 2,394,048
Fund balance, end of year $ 2,236,548 $ 2,151,548 $ 2,678,142 $ 526,594
-114-401
City of Moorpark
Statement of Changes in Fiduciary Asset and Liabilities -Agency Funds
Year Ended June 30, 2015
Balance
June 30, 2014 Additions Deletions
General Trust
Assets
Cash and investments $ 4,009,866 $ 1,676,197 $ (1,412,809)
Cash and investments with fiscal agent 7,437,190 5,779,007 (7,574,445)
Accounts receivable 61,070 28,514 (62,206)
Total assets $ 11,508, 126 $ 7,483,718 $ {9,049,460~
Liabilities
Accounts payable $ 236,241 $ 932,571 $ (1,101,774)
General deposits 3,773,654 1,684,005 (1,251,030)
Due to bondholders 7,498,231 6,310,141 (8, 139,655)
Total liabilities $ 11,508,126 $ 8,926,717 $ p0,492,459~
-115-
Balance
June 30, 2015
$ 4,273,254
5,641,752
27,378
$ 9,942,384
$ 67,038
4,206,629
5,668,717
$ 9,942,384
402
STATISTICAL SECTION
403
This page intentionally left blank.
404
City of Moorpark
Overview of Statistical Section
Year Ended June 30, 2015
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.
405
City of Moorpark
Net Position by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
Governmental activities:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total governmental activities net position
2006 2007
$108,190,324 $ 125,900,770
57,986,366 100,649,409
26,965,428 6,458,224
$193,142,118 $ 233,008,403
The City of Moorpark does not have any business-type activities.
Source: City of Moorpark CAFR.
-116-
2008 2009 2010
$130,071,108 $ 130,581,499 $ 141,095,551
101,613,368 94,878,693 91,504,803
3,641,173 14,213,503 15,828,208
$ 235,325,649 $ 239,673,695 $ 248,428,562
406
City of Moorpark
Net Position by Component
Last Ten Fiscal Years (continued)
(Accrual basis of accounting)
Governmental activities:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total governmental activities net position
2011 2012
$ 145,841,042 $ 139,795,930
72,654,599 87,274,980
13,402,969 7,909,301
$ 231,898,610 $ 234,980,211
-117-
2013 2014 2015
$ 262,271,564 $ 259,798,991 $ 260,051,061
82,125,331 85,872,675 89,500,647
10,042,168 15,655,932 22,642,705
$ 354,439,063 $ 361,327,598 $ 372, 194,413
407
City of Moorpark
Changes in Net Position
Last Ten Fiscal Years
(Accrual basis of accounting)
2006 2007 2008 2009 2010
Expenditures:
General government $ 3,044,381 $ 1,639,628 $ 1,949,206 $ 2,041,596 $ 1,603,279
Public safety 6,230,057 6,317,283 6,882,072 7,035,384 7,016,015
Public services 13,106,843 21,231,766 20,580,204 18, 170,325 13,589,878
Parks and recreation 2,771,270 4,293,823 4,551,045 4,470,524 4,934,002
Interest on long-term debt 1,333,370 1,332,541 1,773,841 1,616,843 1,504,502
Total governmental activities expenses 21,867,463 34,815,041 35,736,368 33,334,672 281647,676
Program revenues:
Charges for services:
General government 2,201,590 191,674 283,576 232,926 258,431
Public safety 340,341 598,500 633,131 538,636 477,305
Public services 4,163,781 6,612,769 5,743,200 3,172,708 2,769,641
Parks and recreation 536,166 604,904 756,885 644,979 643,593
Total charges for services 7,241,878 8,007,847 7,416,792 4,589,249 4 148,970
Operating contributions and grants 3,237,143 4,489,945 7,113,883 6,172,315 4,128,842
Capital contributions and grants 18,027,831 38,337,638 5,481,972 3,326,778 1,970,931
Total governmental activities
program revenues 28,506,852 50,835,430 20,012,647 14,088,342 10,248,743
Net program revenues (expenses) 6,639,389 16,020,389 {15,723,721) {19,246,330) {18,398,933)
General revenues and other changes in net position:
Taxes:
Property tax 2,929,842 3,334,491 4,505,980 7,802,643 7,449,063
Property tax, Redevelopment Agency 5,530,198 6,347,692 6,887,079 7,054,432 6,864,777
Franchise tax 1,080,893 1, 126,951 1,150,180 1,171,556 1, 171,825
Sales tax 2,260,786 2,192,327 2,306,281 2,329,522 2,382,010
Sales tax in lieu 608,298 704,562 779,263 849,227 588,635
Motor vehide in lieu 2,734,470 2,860,207 3,038,440 125,307 109,136
Investment income 3,261,384 6,556,186 2,491,856 2,875,649 853,074
Contributed Capital
Other 135,276 58,841 139,728 386,040 283,372
Gain on sale of property 276,797
County settlement 1,000,000
Extraordinary item -Gain on Dissolution of
Total governmental. activities 18,541,147 23,458,054 21,298,807 23,594,376 19,701,892
Changes in net position -
governmental activities $ 25, 180,536 $ 39,478,443 $ 5,575,086 $ 4,348,046 $ 1,302,959
Source: City of Moorpark CAFR.
-118-408
City of Moorpark
Changes in Net Position
Last Ten Fiscal Years (continued)
(Accrual basis of accounting)
2011 2012 2013 2014 2015
Expenditures:
General government $ 3,201,184 $ 2,217,953 $ 4,149,965 $ 2,169,069 $ 1,212,685
Public safety 7,070,049 6,158,455 6,550,936 6,882,753 7,024,242
Public services 31,775,462 11, 124,523 9,948,865 11,779,873 11,558,575
Parks and recreation 4,658;717 5,704,208 5,755,528 6,026, 182 5,614,080
Interest on long-term debt 1,492,604 354,412
Total governmental activities expenses 48,198,016 25,559,551 26,405,294 . 26,857,877 25,409,582
Program revenues:
Charges for services:
General government 293,008 407,883 587,915 1,474,249 1,463,859
Public safety 492,847 445,642 809,257 2,657,332 3,325,404
Public services 2,473,770 1,988,453 4,154,598 7,815,032 10,471,498
Parks and recreation 697,787 858,333 973,761 1,913,045 3, 119,649
Total charges for services 3,957,412 3,700,311 6,525,531 13,859,658 18,380,410
Operating contributions and grants 5,999,168 3,702,582 3,533,608 4,364,461 4,049,606
Capital contributions and grants 1,703,076 2,106,706 1,879,634 2,010,143 4,636,843
Total governmental activities
program revenues 11,659,656 9,509,599 11,938,773 20,234,262 27,066,859
Net program revenues (expenses) · (36,538,360)
General revenues and other changes in net position:
(16,049,952) (14,466,521) (6,623,615) 1,657,277
Taxes:
Property tax 7,287,282 6,943,275 6,776,729 6,841,765 7,638,300
Property tax, Redevelopment Agency 6,755,960 3,389,064
Franchise tax 1,207,778 1,231,741 1,222,956 1,222,759 1,284,268
Sales tax 2,577,105 2,622,419 2,730,871 2,695,884 2,749,320
Sales tax in lieu 940,791 857,217 875,160 1,089,362 896,527
Motor vehide in lieu 170,592 18,590 19,262 15,942 15,399
Investment income 856,413 1,206,622 142,222 1,153,683 1, 116,545
Contributed Capital 663,818
Other 212,487 245,235 299,730 492,755 685,569
Gain on sale of property
County settlement
Extraordinary item -Gain on Dissolution of 356,845
Total governmental activities 20,008,408 17,534,826 12,066,930 13,512,150 14,385,928
Changes in net position -
governmental activities $ (16,529,952) $ 1,484,874 $ (2,399,591) $ 6,888,535 $ 16,043,205
-119-409
City of Moorpark
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2006
General fund:
Reserved $ 2,943,353
Unreserved 18,301,058
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund $ 21,244,411
All other governmental funds:
Reserved $ 14, 124,235
Unreserved, reported in:
Special revenue funds 36,903,391
Capital projects funds 1,293,998
Debt Service funds (321,425)
Non-major funds 9,724,941
Fund Balances:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds $ 61, 725, 140
Source: City of Moorpark CAFR.
2007
$
24,405,620
$ 24,405,620
$ 41,864,116
41,486,631
16,807,370
83,243
8,693,969
$ 108,935,329
-120-
2008 2009 2010
$ 95,397 $ 373,209 $ 337,286
3,625,348 2,832,620 2,662,713
$ 3,720,745 $ 3,205,829 $ 2,999,999
$ 35,103,620 $ 33,719,016 $ 38,208,807
42,761,089 37,278,628 32,207,690
39,098,065 35,699,829 33,735,939
(1,025,927) 261,336 294,202
13,384,413 25,043,397 25,335,288
$129,321,260 $ 132,002,206 $129,781,~26
410
City of Moorpark
Fund Balances of Governmental Funds
Last Ten Fiscal Years (continued)
(Modified accrual basis of accounting)
2011
General fund:
Reserved $
Unreserved
Nonspendable 220,976
Restricted
Committed
Assigned
Unassigned 2,779,024
Total general fund $ 3,000,000
All other governmental funds:
Reserved $
Unreserved, reported in:
Special revenue funds
Capital projects funds
Debt Service funds
Non~major funds
Fund Balances:
Nonspendable 14,862,594
Restricted 66,565,551
Committed 795,208
Assigned 28,849,138
Unassigned (2,124,660)
Total all other governmental funds $ 108,947,831
2012
$
1,275,022
2,999,000
$ 4,274,022
$
3,055,064
55,945,095
783,281
30,892,276
(2,047, 164)
$ 88,628,552
-121-
2013 2014 2015
$ $ $
635,176 365,899 660,077
3,000,000 3,000,000 2,999,941
$ 3,635,176 $ 3,365,899 $ 3,660,018
$ $ $
10,478,901 10,253,789 10,363,316
44,067,428 49,389,385 54,572,775
742,546 698,395 711,399
33,084,456 36,190,577 42,221,565
(2,026,212) (1,825, 187) (1,604,570)
$ 86,347,119 $ 94,706,959 .$ 106,264,485
411
City of Moorpark
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2006 2007 2008 2009 2010
Revenues:
Taxes $12,231,076 $13,706,024 $ 15,392,269 $19,716,636 $18,730,771
Licenses and permits 72,365 65,630 72,951 645,010 598,370
Fines and forfeitures 340,341 343,579 358,665 484,930 436,377
Lises of money and property 3,261,384 7,085,104 5,684,111 3,114,881 1,547,229
Charges for services 2,665,391 338,929 677,277 3,813,159 3,284,275
Intergovernmental 6,302,193 6,163,985 7,549,040 3,948,059 2,629,132
Maintenance assessments 1,845,742 1,922,471 4,205,700 3,491,975 1,950,431
Franchise fees 283,162 292,003 301,514
Building and safety fees 1, 110,715 716,552 530,761
Planning and public work fees 3,053,066 1,649,002 1,938,143
Development fees 15,568,347 6,403,851 4,501,837
Contributions from prop owners 34,066,993
Other 397,574 2,030,211 433,378 398,539 587,832
Total revenues 47,131,356 74,784,334 41,645,646 35,613,189 29,764,417
Expenditures:
Current:
General government 2,919,564 1,471,354 1,835,801 1,926,283 1,497,916
Public safety 6,211,461 6,083,917 6,637,757 6,814,425 6,769,484
Public services 11,215,406 9,608,754 12,505,613 11,259,297 12,343,896
Parks and recreation 2,544,206 4,039,888 4,291,867 4,182,091 4,453,400
Capital outlay 10,038,439 19,477,866 14,682,017 8,100,604 5,548,179
Debt service:
Principal 435,910 440,000 455,000 475,000 495,000
Interest 1,251,354 1,400,985 1,631,932 1,594,062 1,482,799
Bond issuance costs 505,588
Total expenditures 34,616,340 43,028,352 42,039,987 34,351,762 32,590,674
Excess of revenues over
expenditures 12,515,016 31,755,982 ~394,341) 1,261,427 ~2,826,257)
Other financing sources (uses):
Gain from sale of property 1,410 276,797
Bond Proceeds 11,695,000
Discount on Bonds (325,401)
County settlements 1,000,000
Transfers in 3,352,002 9,457,260 27,626,755 17,062,650 9,378,101
Transfers out (3,352,002) (9,457,260) (27,626,755) (17,062,650) (9,378,101)
Total other financing
sources (uses) 1,410 11,646,396 1,000,000
Extraordinary Item
Net change in fund balances $12,516,426 $ 43,402,378 $ ~394,341) $ 2,261,427 $ (2,826,257)
Debt service as a percentage of
noncapital expenditures 7.4% 8.7% 8.3% 8.6% 7.9%
Source: City of Moorpark CAFR.
-122-412
City of Moorpark
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (continued)
(Modified accrual basis of accounting)
2011 2012 2013 2014 2015
Revenues:
Taxes $ 19,042,900 $ 16,147,175 $ 12,662,488 $12,931,981 $ 13,688,319
Licenses and permits 587,186 561,530 498,102 1,279,619 1,249,964
Fines and forfeitures 441,543 446,426 420,555 425,844 384,288
Uses of money and property 1,537,255 1,381,235 482, 129 1,533,697 1,512,399
Charges for services 2,579,593 3,559,454 5, 170,238 10,785,334 15,951,226
Intergovernmental 4,786,235 1,627,462 2,503,734 3,257,823 5,246,632
Maintenance assessments 2,112,992 2,114,957 1,893,699 2,159,121 2,487,047
Franchise fees
Building and safety fees
Planning and public work fees
Development fees
Contributions from prop owners
Other 833,082 1,345,246 167,784 438,612 445,197
Total revenues 31,920,786 27,183,485 23,798,729 32,812,031 40,965,072
Expenditures
Current:
General government 2,289,299 890,396 2,125,004 1,746,028 2,495,775
Public safety 6,839,355 6,467,065 6,306,906 6,643,550 6,789,765
Public services 12,876,132 8,321,090 7,391,632 9,126,851 10,468,227
Parks and recreation 4,074,490 5,038,957 5,086,773 5,354,601 5,732,314
Capital outlay 24,506,524 4,679,053 5,144,756 1,580,438 3,892,870
Debt service:
Principal 1,874,064 590,122
Interest 1,471,516 688,825 -4,476
Bond issuance costs
Total expenditures 53,931,380 26,675,508. 26,055,071 24,451,468 29,383,427
Excess of revenues over
expenditures ~22,010,594! 507,977 ~2,256,342! 8,360,563 11,581,645
Other financing sources (uses):
Gain from sale of property
Bond Proceeds
Discount on Bonds
County settlements
Transfers in 3,820,738 4,739,189 3,262,665 4,718,044 7,365,629
Transfers out (2,644,238) (4,739,189) (3,262,665) (4,718,044) (7,365,629)
Total other financing
sources (uses) 1,176,500
Extraordinary Item (19,553,234)
Net change in fund balances $ {20,834,094! $ {19,045,257! $ {2,256,342! $ 8,360,563 $ 11,581,645
Debt service as a percentage of
noncapital expenditures 12.8% 6.2% 0.0% 0.0% 0.0%
-123-413
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414
City of Moorparlc
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Fiscal Year
Ended
June 30, Secured
2006 3,721,591,791
2007 4, 157,360,033
2008 4,558,597,806
2009 4,700,305,496
2010 4,619,910,655
2011 4,659,133,835
2012 4,662,536,870
2013 4,596,277,650
2014 4, 718,569,672
2015 5,042,223,024
Source: Ventura County Assessor's Office
NOTE:
c·
Taxable
Less: Assessed
Unsecured Exeme!!2ns Value
168,802,350 43,313,074 3,933,707,215
165,798,359 43,364,070 4,366,522,462
173,209,606 45,607,510 4,777,414,922
174,181,146 46,351,377 4,920,838,019
180,988,669 '16.474,508 4,847,373,832
153,000,627 46,689,455 4,858,913,917
118,452,976 46,220,250 4,827,210,096
115,888,876 45,786,243 4,757,952,769
119,712,860 45,054,167 4,883,336,699
123,500,500 45,844,355 5,119,879,169
Redevelopment Agency
Taxabte Total
Less: Assessed Direct Tax
Secured Unsecured Exeme!ions Value ~
660,810,677 99,693,057 3,931,766 764,435,500 0.037%
743,592,913 102,795,641 3,958,627 850,347, 181 0.037%
809,452,407 102,442,198 4,276,693 916, 171,298 0.033%
828,244,210 102,730,045 4,309,164 935,283,419 0.035%
825,093, 781 113,302,525 4,333,240 942,729,546 0.038%
813,947,565 110,905,079 4,436,801 929,289,445 0.040%
829,750,375 76,258,253 4,422,902 910,431,530 0.031%
867,853,781 70,454,127 4,491,843 942,799,751 1.068%
878,368,970 70,500,448 4,423,367 953,292, 785 1.068%
909,850,372 74,847,964 7,970,727 976,727,609 0.095%
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1 % based upon the assessed value of the
property being taxed. Each year, the assessed value d property may be increased by an "inflation factor" Qimited to a maximum increase of 2%). With few exceptions,
property is only re-assessed at the time that it is sold to a new owner. At that pain~ the new assessed value is reassessed at the purchase price of the property sold. The
assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the
limitations described above.
-124-
415
City of Moorpark
Direct and Overlapping Property Tax Rates (Rate per $100 of assessed value)
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 ----
Basic Levy 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Conejo Valley Unified 0.02670 0.02490 0.02420 0.02500 0.02640 0.02850 0.03070 School Distrid
Metropolitan Water District 0.00520 0.00470 0.00450 0.00430 0.00430 0.00370 0.00370
Moorpar1< Unified 0.03660 0.03740 0.03310 0.03510 0.03760 0.03980 0.05750 School Distrid
Ventura Community 0.01300 0.01270 0.00500 0.01520 0.01390 0.01510 0.01400 College Distrid --------
2 Total Dired & 1.08150 1.07970 1.06680 1.07960 1.08220 1.08710 1.10590 Over1apping Tax Rates --------
3 City's Share of 1 % Levy 0.07447 0.07447 0.07447 0.09094 0.09077 0.90770 0.09077 per Prop 13
General Obligation Debt Rate
4 Redevelopment Rate 1.00520 1.00470 1.00450 1.00430 1.00430 1.00370 1.00370
5 Total Dired Rate 0.19150 0.19826 0.19963 0.21254 0.21589 0.21304 0.21047
Notes
2013 2014 2015
1.00000 1.00000 1.00000
0.03240 0.03270 0.03290
0.00350 0.00350 0.00350
0.04490 0.03950 0.05550
0.01910 0.01670 0.01760 ----
1.09990 1.09240 1.10950
0.09078 0.09078 0.09078
0.21806 0.09508 0.09498
1 In 1978, Califomia.wters passed Proposition 13 which sets the property tax rate at a 1.00% f1Xed 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, property owners are charged taxes as a percentage of assessed property values for the
payment of any wter approved bonds.
2 Over1apping rates are those of local and county governments that apply to property ov.ners within the City. Not all over1apping rates apply to all city property owners.
3 City's 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 overiapping rates are appRed only to the incremental property values. The approval of Abx1 26 eliminated redevelopment from 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 2013114 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas.
Challenges to recognized enforceable obngations are assumed to haw been resolved during 2012113. For the purposed of this report, residual revenue is assumed
to be distributed to the City in the same proportions as general fund rewnue.
Source: Hdl, Coren & Cone
Ventura County Assessor
I
-125-416
City of Moorpark
Principal Property Tax Payers
Current Year and Ten Years Ago
Taxpayers
NF Moorpark Multifamily Assoc
Waterstone Properties Moorpark LLC
Autosafe Airbag 12 California
Pardee Homes
Majestic Court Properties
PPC GIA Moorpark Associates
Toll Land XIX LLC
Moorpark Center LLC
Village at Moorpark LLC
William Lyon Homes
Kavlico Corporation
Zelman Marketplace
Mission Bell West LP
Tuscany Square Partners LLC
EB West Properties Inc.
Laars Inc
G-S Partnership
ROIG California
Calabasas BCD
2015
Taxable
Assessed
Value*
$ 84,429,300
70,289,760
44,953,577
30,641,545
24,503,605
22,994,270
22,992,708
22,515,059
20,881,966
20,542,188
$ 364,743,978
2005
Percent of
Total City
Taxable Taxable
Assessed Assessed
Value Value
1.65 % $
1.37 %
-% 66,845,295
-% 61,605,433
-% 55,532,134
-% 50,229,392
-% 49, 130,463
0.88%
0.60%
-% 29,184,315
-% 28,942,700
-% 26,165,931
0.48 %
0.45 %
0.45%
-% 21,556,888
0.44% 19,750,800
0.41 %
0.40 %
7.12% $ 408,943,351
* 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 2014-2015 property data.
-126-
Percent of
Total City
Taxable
Assessed
Value
-%
-%
1.70 %
1.57 %
1.41 %
1.28 %
1.25 %
-%
-%
0.74%
0.74%
0.66%
-%
-%
-%
0.55%
0.50%
-%
-%
10.39%
417
City of Moorpark
Secured Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Collections
Fiscal Taxes Levied Fiscal Year of Le~ from Total Collections
Year Ended for the Percent Previous Percent
June 30, Fiscal Year Amount of Le~ Years Amount of Le~
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 %
2014 3,817,587 3,545,339 92.9% 125,651 3,670,990 96.2%
2015 4, 186,012 3,965,562 94.7% 127,695 4,093,257 97.8%
Source: Ventura County Auditor Controller's Office Levy Letter
Note: The amounts presented include City property taxes only. It does not inciude redevelopmenttax increment.
Note: In FY 2007/08 $785,653 in adjustments ~ncluding the Library) were added to the Levy Letter.
Subsequent years = Realized Revenue Report, Prior secured
-127-418
City of Moorpark
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Fiscal Year General Tax Total
Ended Obligation Allocation Governmental
June 30, Bonds Bonds 1 Activities
2006 $ $18,880,000 $18,880,000
2007 30,135,000 30,135,000
2008 29,680,000 29,680,000
2009 29,185,000 29,185,000
2010 28,710,000 28,710,000
2011 28,155,000 28,155,000
2012
2013
2014
2015
Total
Primary
Government
$18,880,000
30,135,000
29,680,000
29,185,000
28,710,000
28,155,000
Notes: Details regarding the City's outstanding debt can be found in the notes to the
financial statements.
Percentage
of Personal
Income 2
1%
1%
1%
1%
1%
1%
0%
0%
0%
0%
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 of the financial statements.
2 These ratios are calculated using personal income and population for the prior calendar year.
-128-
Debt
Per
Capita 2
527
826
803
787
764
811
419
City of Moorpark
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Outstandin9 General Bonded Debt
Fiscal Year General Tax
Ended Obligation Allocation
June 30, Bonds Bonds 1 Total
2006 18,880,000 18,880,000
2007 30,135,000 30,135,000
2008 29,680,000 29,680,000
2009 29,185,000 29,185,000
2010 28,710,000 28,710,000
2011 28,155,000 28,155,000
2012
2013
2014
2015
Percent of
Assessed
Value 2
0.4%
0.6%
0.5%
0.5%
0.5%
0.5%
-%
-%
-%
-%
General bonded debt is debt payable with governmental fund resources and general
obligation bonds recorded in enterprise funds (of which, the City has none).
1Tax Allocation Bonds are the debt of the Successor Agency and not a part of the City.
Please read Note 14 of the financial statements.
2Assessed value has been used because the actual value of taxable property is not
readily available in the State of California.
-129~
Per
Capita
527
826
803
787
764
811
420
City of Moorpark
Direct and Overlapping Debt
City Assessed Valuation 2014-15
Redevelopment Agency Incremental Valuation
Adjusted Assessed Valuation
Direct and Overlapping Tax and Assessment Debt:
Metropolitan Water District
Ventura Community College District
Conejo Valley Unified School District
Moorpark Unified School District
City of Moorpark
City of Moorpark Community Facilities District No. 97-1
City of Moorpark Community Facilities District No. 2004-1
City of Moorpark 1915 Act Bonds
Total Direct and Overlapping Tax & Assessment Debt
Overlapping General Fund Obligation Debt:
Ventura County General Fund Obligations
Ventura County Superintendent of Schools COPs
Moorpark Unified School District COPS
Total Overlapping General Fund Obligation Debt
Overlapping Tax Increment Debt (Successor Agency):
Total Direct Debt
Combined Total Debt*
Total direct and overlapping debt
Notes:
Percentage
Applicable
0.221 %
4.487 %
0.016%
93.366 %
100.000 %
100.000 %
100.000%
100.000 %
4.485%
4.485%
93.366 %
100.000 %
$ 5, 119,879, 169
976,727,609
$ 4, 143, 151,560
Debt as of
6/30/2015
$ 110,420,000
303,412,082
63,911,497
56,499,983
4,940,000
13,650,000
920,000
$ 553,753,562
$ 385,475,000
10,795,000
6,020,000
$ 402,290,000
$ 24,920,000
$ 980,963,562
$
$
$
$
$
$
$
$
Estimated
Share of
Overlapping
Debt
244,028
13,614, 100
10,226
52,751,774
4,940,000
13,650,000
920,000
86,130,128
17,288,554
484, 156
5,620,633
23,393,343
24,920,000
134,443,471
134,443,471
* Exdudes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations,
of which the City has none.
The direct and overlapping bonded debt above is not the City's 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 City's share
of debt.
-130-421
City of Moorpark
Legal Debt Margin Information
Last Ten Fiscal Years
2006
Assessed valuation $ 3,721,591,791
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:
General Obligation Bonds
Legal debt margin
Total debt applicable to the limit
as a percentage of debt limit
25%
930,397,948
15%
139,559,692
$ 139,5591692
0.0%
Source: City of Moorpark, Finance Department
Ventura County Tax Assessor's Office
2007
$ 4,157,360,033
25%
1,039,340,008
15%
155,901,001
$ 155,9011001
0.0%
2008 2009 2010
$ 4,558,597,806 $ 4,700,305,496 $ 4,619,910,655
25% 25% 25%
1, 139,649,452 1, 175,076,374 1,154,977,664
15% 15% 15%
170,947,418 176,261,456 173,246,650
$ 17019471418 $ 176,2611456 $ 17312461650
0.0% 0.0% 0.0%
Note: 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.
-131-422
City of Moorpark
Legal Debt Margin Information
Last Ten Fiscal Years (continued)
Assessed valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:
General Obligation Bonds
Legal debt margin
Total debt applicable to the limit
as a percentage of debt limit
2011
$ 4,659, 133,835
25%
1,164,783,459
15%
174,717,519
$ 174,717,519
0.0%
2012
$ 4,662,536,870
25%
1, 165,634,218
15%
174,845,133
$ 174,845, 133
0.0%
-132-
2013 2014 2015
$ 4,596,277,650 $ 4,718,569,672 $ 5,042,223,024
25% 25% 25%
1,149,069,413 1, 179,642,418 1,260,555,756
15% 15% 15%
172,360,412 176,946,363 189,083,363
$ 172,360,412 $ 176,946,363 $ 189,083,363
0.0% 0.0% 0.0%
423
City of Moorpark
Pledged-Revenue Coverage
Last Ten Fiscal Years
Fiscal Year
Ended Tax
June 30, Increment
2006 $ 5,487,272
2007 6,306,385
2008 6,858,882
2009 7,010,760
2010 6,842;837
2011 6,716,136
2012
2013
2014
2015
Note
Tax Allocation Bonds
Debt Service
Principal Interest
$ 420,000 $ 944,281
440,000 1,085,040
455,000 909,906
475,000 1,397,922
495,000 1,376,088
555,000 1,350,874
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 the Successor Agency outstanding debt can be
found in the notes to the financial statements. Operating expenses do not include interest
or depreciation expenses.
-133-
Coverage
4.02
4.14
5.03
3.74
3.66
3.52
n/a
n/a
n/a
n/a
424
City of Moorpark
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar
Year Population
2006 35,836
2007 36,480
2008 36,971
2009 37,086
2010 37,576
2011 34,710
2012 34,826
2013 34,904
2014 35,172
2015 35,727
Household
Income
$ 930,010
969,311
1,075,236
1,069,535
1,086,966
1,032,167
960,667
1,065,253
1,098,171
1, 115,499
Sources: California State Department of Finance
-134-
Median
Household Unemployment
Income Rate
$ 85,122 4.4%
87,153 4.7%
95,393 5.7%'
94,593 10.3 %
94,881 10.6%
97,537 10.0%
90,478 8.7%
100,104 6.4%
102,411 6.2%
102,411 5.2%
425
City of Moorpark
Principal Employers
Current and Ten Calendar Years Ago
2015
Percent of
Number of Total
Employer Employees Employment
PennyMac 1,279 7.1 %
Moorpark Unified School District 869 4.9%
Moorpark College 661 3.7%
Pentair Water Pool and Spa 530 3.0%
Kavlico 390 2.2%
Benchmark Electronics 256 1.4%
Target 142 0.8%
Ensign-Bickford Aerospace 140 0.8%
Test Equity 121 0.7%
Kretek International 120 0.7%
"Total Employment" as used above represents the total employment of all employers located within
City limits.
The City does not present 2005 information because date for that year was not available.
Source: Chamber of Commerce
City-data.com
Bureau of Labor Statistics
-135-426
City of Moorpark
Full-Time and Part-Time City Employees by Function
Last Ten Fiscal Years
Function 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General government 31 30 26 26 26 27 28 27 27 26
Public safety (crossing guards) 7 7 7 6 5 5 3 3 3 3
Public services 17 26 22 22 20 16 18 19 19 22
Parks and recreation 41 49 54 56 55 54 51 58 75 70
Total 96 112 109 110 106 102 100 107 124 121
Public safety 1 31 42 42 38 38 40 39 40 40 40
1 Police and fire services were provided by the County.
Fire = 18 and police = 22
Source: City of Moorpark, Finance Department
-136-427
City of Moorpark
Operating Indicators by Function
Last Ten Fiscal Years
2006
Police: (A)
Arrests 1,653
Parking citations issued 2,890
Fire: (B)
Number of "prime" emergency calls 1,329
Business Inspections• 125
Public works: (C)
Street resurfacing (miles)
Parks and recreation: (D)
Number of recreation dasses 338
Number of facility rentals 338
2007 2008
1,890 1,732
4,160 2,860
1,351 1,362
123 130
30.0 3.8
479 378
180 210
2009
1,412
3,254
1,100
143
265
186
2010
2,207
4,969
1,945
115
5.0
419
230
Prime calls and business inspections are for County of Ventura, Fire department station #42
2011
1,266
4,887
1,707
196
2.0
325
2n
2012
1,158
5,704
2,174
196
308
118
2013
1, 120
5,129
1,851
132
4.5
300
226
• 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.
-137-
2014
1,148
2,736
1,835
500
265
103
2015
938
3, 117
1,996
694
303
248
428
City of Moorpark
Capital Asset Statistics by Function
Last Ten Fiscal Years
------2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 --------- ---Police:
Stations
Fire:
Fire stations 2 2 2 2 2 2 2 2 2 2
Public works:
Streets (miles) 75 75 78 79 79 79 79 79 79 79
Streetlights 1 2,347 2,497 2,510 2,518 2,518 2,620 2,620 2,620 2,620 2,620
Traffic signals 17 17 20 20 20 21 21 21 21 21
Parks and recreation:
Parks 16 16 16 17 18 18 18 18 18 19
Community centers 2 2 2 2 2 2 2 2 2 2
10f the streetlights, 2,612 are owned by Edison and 8 are owned by the City
Source: City of Moorpark
-138-429
This page intentionally left blank.
430
7 35 E. C,1rneg1e Dr Suite I 00
Srln Bernardino. CA 92408
909 889 087 I T
909 889 S36 I F
P/..,RTNERS
B: e11dd l_. Odk•. CP/,_ MST
ferry F Shea. CPA
K.u-k A. Franks. CPA
Scorr W. Manno. CPA. CGMA
Leen;i Sh;inhhag. CPA. MST. CGMA
Jay H. Zercher. CPA 1Purner Emcnrus\
Phill!p H Waller. CPA (Panncr fmenrus)
DIRECTORS
Bradferd A. Weleb1r. CPA. MBA
MANAGERS/ STAFF
Jenny Liu. CPA. MST
Seong-Hyca Lee. CPA MBA
Charle~ De Simoni. CPA
Yiann Fang. CPA
NJthan Statham. CPA. MBA
Bng1tta B;irrha. CPA
Gardenya Duran. CPA
Juan Romero. CPA
Ivan Gonzales. CPA. MSA
Brianna Pascoe. CPA
Daniel Hernandez. CPA. MBA
MEMBERS
ArT"iencan lnstiwte of
Cert1f1ed Pubhc Accountants
PCPS The A/CPA Alltance
for CPA flfms
Govunmentai Audil
Quol1ry (enc,-,r
C;ilifornii1 Society or
C~n1f1C'rl Pu!Jlic Account;HHS
ROGERS. ANDERSON. MALODY & SCOTT. LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
To the Honorable Mayor and City Council
City of Moorpark
Moorpark, California
Attachment 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
We have audited, in accordance with the auditing standards generally accepted
in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards issued by the Comptroller General
of the United States, the financial statements of the governmental activities, each
major fund, and the aggregate remaining fund information of the City of
Moorpark, California (City) as of and for the year ended June 30, 2015, and the
related notes to the financial statements, which collectively comprise the City of
Moorpark, California's basic financial statements, and have issued our report
thereon dated December 30, 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
timely basis. A material weakness is a deficiency, or a combination of
deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or
detected and corrected on a timely basis. A significant deficiency is a deficiency,
or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with
governance.
STABILITY ACCURACY. TRUST. 431
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. entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
San Bernardino, California
December 30, 2015
~01T
I L 1.1'
432
735 E Carnegie Dr Suite I 00
S.1n Ben1ardino, CA 92408
909 889 087; T
9098895361 F
r;irn.scca nel
P,.\RTNERS
Brenda L.. Odle, CPA. MST
Terry P. Shea. CPA
Kirk A. Franks. Cf'/'
Scott W. Manno, CPA. CGMA
leen;i Shanbhag. CPA. MST. CGMA
jay H. Zercher. CPA (Portner Emeritus)
Phillip H. Waller. CPA (Partner Emeriws)
DIRECTORS
Bradferd A Welebir, CPA. MBA
M.l\N/\GERS ! STAFF
Jenny Liu, CPA. MST
Seong-Hyea Lee. CPA, MBA
Charles De Simoni. CPA
Y1ann Fang. CPA
Nathan Statham. CPA. MflA
Brigitta Bartha. CPA
Gardenya Duran. CPA
jul)n Romero. CPA
Ivan Gom:ales. CPA MSA
Brianna Pascoe. CPr'\
MEMBERS
American Institute of
Certified Public Accountants
PCPS Tl:e A/CPA Alliance
(or CPA Firms
Governmental Audi(
Q11ollly Center
C.ilirornia Society of
Certified Public Accountants
ROGERS, ANDERSON, MA.LODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
To the Honorable City Council
City of Moorpark, California
Attachment 3
INDEPENDENT ACCOUNTANT'S REPORT ON AGREED-UPON
PROCEDURES APPLIED TO APPROPRIATIONS LIMIT
WORKSHEETS
We have performed the procedures enumerated below to the
accompanying Appropriations Limit worksheet of the City of Moorpark,
California (City), for the year ended June 30, 2015. These procedures,
which were agreed to by the City and the League of California Cities (as
presented in the publication entitled Agreed-upon Procedures Applied to
the Appropriations Limitation Prescribed by Article XlllB of the California
Constitution), were performed solely to assist the City in meeting the
requirements of Section 1.5 of Article XlllB of the California Constitution.
The City's management is responsible for the Appropriations Limit
worksheet. This agreed-upon procedures engagement was conducted in
accordance with attestation standards established by the American
Institute of Certified Public Accountants. The sufficiency of the
procedures is solely the responsibility of those parties 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
year's limit to total adjustments and agreed the resulting amount to
this year's limit.
Finding: No exceptions were noted as a result of our procedures.
3. We agreed the current year information presented in the
accompanying Appropriations Limit worksheet to the other documents
referenced in #1 above.
Finding: No exceptions were.noted as a result of our procedures.
STABILITY. ACCURACY. TRUST.
433
Honorable City Council
City of Moorpark, California
Page2
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 XlllB 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.
San Bernardino, California
July 30, 2015
~011 LLf'
I
434
CITY OF MOORPARK
APPROPRIATIONS LIMIT COMPUTATION
2014 -2015
Growth in Non-residential Assessed
Valuation for New Construction
Population Change
City Population Growth
CPI Change Converted to a Ratio
Population Change Converted to a Ratio
Calculation of Growth Factor
2013-2014 Limit
2014-2015 Appropriations Limit
$ 29,619,441
$ 31,561,052
2014-2015
5.72%
0.79%
1.0572
1.0079
1.0656
435
735 E. C;uneg1e Dr. Suite 100
San BernArdino. CA 92408
909 889 0871 T
9098895361 F
ramscpa ner
PARTNERS
Brend?. L. Orlle. Cf'A. MST
Terry P. Shea. CPA.
Kirk A Franks. (YA
Scott W. M;inno. CPt,, CGMA
L<?en" Shanbhag. CPA. MST. CGMA
Jay H. Zercher. CP.o1\.1Part.ncr Erncrirus)
Phillip H. \fl./aJfer", CPA {Partner Emeritus)
DIRECTORS
Bradler·d A. Welebw. CPA. MBA
MANAGERS l STAFF
Jenny Liu. CPA. MST
Seong-Hyea L<>e. CPA. MRA
Charles De Simoni. CPA
Yiann Fang. CPA
Nathan Stath"m. CPA MBA
Bngma Barrha. CPA
G.;1rdP.ny;:1 Dur;in. CPA
Juan Romero. CPI\
Ivan Gonzale>. CPA. MSA
Brianna Pascoe. CPA
Daniel Hernandez. CPA MBA
MEMBERS
Anier!can :ns(ltute of
Certified. Public Accouncanrs
PCPS The A/CPA A/11once
for CPI\ F,,m,
Governmencot Aud•C
Qualitv Ccnier
C:iliforni:'.I Society of
Cernf1ed Public Accountants
ROGERS. ANDERSON. MALODY & SCOTT. LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
To the Honorable City Council
City of Moorpark
December 30, 2015
Attachment 4
We have audited the financial statements of the governmental activities, each
major fund, and the aggregate remaining fund information of City of Moorpark
(the City) for the year ended June 30, 2015. Professional standards require that
we provide you with information about our responsibilities under generally
accepted auditing standards, as well as certain information related to the planned
scope and timing of our audit. We have communicated such information in our
letter to you dated June 22, 2015. Professional standards also require that we
communicate to you the following information related to our audit.
Significant Audit Matters
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 1 to the financial
statements, the City changed accounting policies related to pensions by adopting
Governmental Accounting Standards Board Statements (GASB Statement) No.
68 and 71, Accounting and Financial Reporting for Pensions and Pension
Transition for Contributions Made Subsequent to the Measurement Date -An
. Amendment of GASS Statement No. 68, respectively, in' fiscal year 2015.
Accordingly, the cumulative effect of the accounting change as of the beginning
of the year is reported in the Statement of Activities. 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 estimates are particularly sensitive because of their significance to
the financial statements and because of the possibility that future events affecting
them may differ significantly from those expected. The most sensitive estimates
affecting the City's financial statements were:
Management's estimate of the fair value of investments is based
on information provided by financial institutions. We evaluated
the key factors and assumptions used to develop the fair value of
investments in determining that it is reasonable in relation to the
financial statements taken as a whole.
STABILITY. ACCURACY. TRUST. 436
Honorable City Council
City of Moorpark
December 30, 2015
Page2
Management's estimate of the asset for other post-employment benefits is based on
actuarial reports provided by independent actuaries. We evaluated the key factors and
assumptions used to develop the estimate in determining that it is reasonable in relation
to the financial statements taken as a whole.
Management's estimate of the net pension liability and related actuarial deferred inflows
and outflows are based on actuarial reports provided by independent actuaries. We
evaluated the key factors and assumptions used to develop the estimate 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 disclosures affecting the financial statements were:
The disclosure of fair value of investments in Note 2 to the financial statements
represents amounts susceptible to market fluctuations.
The disclosure of net pension liability and related actuarial deferred inflows and outflows
in Note 7 to the financial statements is based on actuarial assumptions. Actual future
liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.
The disclosure of the other post-employment benefits (OPEB) in Note 8 to the basic
financial statements identifies the annual OPEB cost and the funded status of the
actuarial accrued liability. The information disclosed is based on actuarial assumptions
which could differ from actual costs.
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.
Co"ected and Unco"ected 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 December 30, 2015.
437
Honorable City Council
City of Moorpark
Management Consultations with Other Independent Accountants
December 30, 2015
Page 3
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.
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
We applied certain limited procedures to the Management's Discussion and Analysis, the Budgetary
Comparison Schedules of the General Fund and Major Special Revenues Funds, the OPEB Schedule of
Funding Progress, the Schedule of the City's Proportionate Share of the Plans' Net Pension Liability and
Related Ratios as of the Measurement Date, and the Schedule of Plans' Contributions which are required
supplementary information (RSI) that supplements the basic financial statements. Our procedures
consisted of inquiries of management regarding 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 did
not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual non-major fund financial statements and the
budgetary comparison schedules, which accompany the financial statements but are not RSI. With
respect to this supplementary information, 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.
We were not engaged to report on introductory and statistical sections, which accompany the financial
statements but are not RSI. We did not audit or perform other procedures on this other information and
we do not express an opinion or provide any assurance on it.
Restriction on Use
This information is intended solely for the use of the Honorable 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.
Very truly yours,
~01T ,
438
--
CITY OF MOORPARK, CALIFORNIA
HOUSING SUCCESSOR FUND
AUDITED FINANCIAL STATEMENTS
JUNE 30, 2015
Attachment 5
ROGERS, ANDERSON, MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
439
City of Moorpark
Housing Successor Fund
Table of Contents
Year Ended June 30, 2015
INDEPENDENT AUDITOR'S REPORT
FINANCIAL STATEMENTS
Fund Financial Statements
Balance Sheet-Governmental Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Fund
Notes to the Financial Statements
PAGE
3
4
5
440
735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Brenda L. Odle. CPA. MST
Terry P. Shea. CPA
Kirk A. Franks, CPA
Scott W. Manno. CPA. CGMA
Leena Shanbhag. CPA. MST. CGMA
jay H. Zercher. CPA (Partner Emeritus)
Phillip H. Waller. CPA (Partner Emeritus)
DIRECTORS
Bradferd A. Welebir, CPA. MBA
MANAGERS I STAFF
jenny Liu, CPA. MST
Seong-Hyea Lee, CPA. MBA
Charles De Simoni. CPA
Yiann Fang. CPA
Nathan Statham. CPA. MBA
Brigitta Bartha. CPA
Gardenya Duran. CPA
Juan Romero, CPA
Ivan Gonzales. CPA. MSA
Brianna Pascoe. CPA
Daniel Hernandez, CPA. MBA
MEMBERS
American Institute of
Certified Public Accountants
PCPS The A/CPA Alliance
for CPA Firms
Govemmentdl Audit
Quality Center
California Society of
Certified Public Accountants
ROGERS, ANDERSON, MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
To the City Council
City of Moorpark, California
INDEPENDENT AUDITOR'S REPORT
Report on the Financial Statements
We have audited the accompanying financial statements of the Low-Mod Income
Housing Asset Fund of the City of Moorpark (Housing Successor Fund), California,
as of and for the year ended June 30, 2015, and the related notes to the financial
statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these
financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and
maintenance of internal. control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud
or error.
Auditor's Responsibility
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
purpose of expressing an opinion on the effectiveness of the entity's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
- 1 -
STABILITY. ACCURACY. TRUST.
441
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, 2015, 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. 68, Accounting and Financial Reporting for
Pensions -An Amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition
for Contributions Made Subsequent to the Measurement Date -An Amendment of GASB Statement
No. 68. Our opinions are 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, 2015, 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
December 30, 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. ·
San Bernardino, California
December30, 2015
~01T Llf>
J
-2-442
City of Moorpark
Housing Successor Fund
Balance Sheet -Governmental Fund
June 30, 2015
ASSETS
Cash and investments
Notes and loans receivable
Property held for resale
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE
Liabilities:
Accounts payable and accrued liabilities
Unearned revenue
Total liabilities
Deferred inflows of resources:
Deferred loans
Fund balance:
Nonspendable
Restricted
Total fund balance
Total liabilities, deferred inflows of
resources and fund balance
Low-Mod Income
Housing Asset
Fund
$
$
$
$
226,694
1,997,472
7,429,564
9,653,730
2,578
10,000
12,578
1,997,472
7,429,564
214,116
7,643,680
9,653,730
The accompanying notes are an integral part of these financial statements.
-3-443
City of Moorpark
Housing Successor Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Fund
Year Ended June 30, 2015
REVENUES
Use of money and property
Charges for services
Total revenues
EXPENDITURES
Current:
General government
Public services
Interest
Total expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Low-Mod Income
Housing Asset
Fund
$
$
2,677
19,800
22,477
100
26,065
4,476
30,641
(8, 164)
7,651,844
7,643,680
The accompanying notes are an integral part of these financial statements.
-4-444
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2015
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 (GASS) 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 Low-Mod Income Housing
Asset Fund (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 GASS, 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 GASS Statement
No. 20, the City applies all applicable Financial Accounting Standards Board (FASS)
pronouncements issued on or before November 30, 1989, unless any such pronouncements
contradict GASS 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.
As required by the Governmental Accounting Standards Board, the City implemented
GASBS No. 63, Financial Reporting of Deferred Outflows of Resources, Defe"ed 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.
-5-445
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2015
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 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 Moorpark 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, 2015 was
$7,429,564.
E) Unearned Revenue
Unearned revenue is recorded for monies collected in advance that have not been earned.
As of June 30, 2015, unearned revenue in the Governmental Fund amounted to $10,000.
F) In accordance with provisions of GASB Statement No. 65, Items Previously Reported as
Assets and Liabilities, the Housing Successor Fund'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 $ 1,997,472
G) Implementation of New GASB pronouncements
GASB has issued Statement No. 68, Accounting and Financial Reporting for Pensions -An
Amendment of GASB Statement No. 27. The primary objective of this Statement is to
improve accounting and financial reporting by state and local governments for pensions. It
also improves information provided by state and local governmental employers about
financial support for pensions that is provided by other entities. This statement establishes
standards for measuring and recognizing liabilities, deferred outflows of resources, and
deferred inflows of resources, and expense/expenditures. For defined benefit pension plans,
this Statement identifies the methods and assumptions that should be used to project benefit
payments, discount projected benefit payments to their actuarial present value, and attribute
that present value to periods of employee service.
GASB has issued Statement No. 71, Pension Transition for Contributions Made Subsequent
to the Measurement Date -An Amendment of GASB Statement No. 68. The objective of this
Stat~ment is to address ah issue regarding application of the transition provisions of
Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to
amounts associated with contributions, if any, made by a state or local government employer
or non-employer contributing entity to a defined benefit pension plan after the measurement
date of the government's beginning net pension liability.
-6-446
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2015
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
G) Implementation of New GASB pronouncements (continued)
These pronouncements have been implemented for purposes of measuring the net pension
liability and deferred outflows/inflows of resources related to pensions, and pension
expense/expenditures. Information about the fiduciary net position of the City's California
Public Employees' Retirement System (CalPERS) plans (Plans) and additions to/deductions
from the Plans' fiduciary net position have been determined on the same basis as they are
reported by CalPERS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
2) CASH AND INVESTMENTS
Cash and investments at June 30, 2015, consisted of the following:
Pooled cash and investments $ 226,694
The Housing Successor Fund 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, 2015, please see the
City's audited financial statements.
3) NOTES AND LOANS RECEIVABLE
Notes and loans receivable activity for the year ended June 30, 2015, is as follows:
Beginning Ending
Balance Increases Decreases Balance
Notes receivable
Moorpark 20, LP $ 1,939,927 $ 44,413 $ (582) $ 1,983,758
Loans receivable
Rehabilitation 13,714 13,714
Total notes and loans receivable $ 1,953,641 $ 44,413 $ ~582~ $ 1,997,472
-7-447
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2015
3) NOTES AND LOANS RECEIVABLE (continued)
A) Moorpark 20, LP Promissory Notes
On October 29, 2010, the Agency signed the Disposition and Development Agreement (DOA)
with the Area Housing Authority of the County of Ventura (AHA) and Moorpark 20, Limited
Partnership (M20LP), consisting of AHA and Santa Barbara Housing Assistance Corporation.
The DOA 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 M20LP 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 M20LP 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, 2015 are $1,176,500 and.$137,258 respectively for a
total of$1,313,758.
On November 2, 2010 the Agency entered into a $600,000 loan agreement with M20LP to
complete the construction of the Project. As of June 30, 2012, M20LP 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 M20LP 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, 2015 are $600,000 and
$70,000 respectively for a total of $670,000.
The combined amounts of principal and accrued interest outstanding at June 30, 2015 are
$1,776,500 and $207,258 respectively, for a total of $1,983,758.
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, 2015, was
$13,714.
-8-448
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2015
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:
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 Definition. Fund balances in governmental
funds are reported in classifications that comprise a hierarchy based primarily on the extent to
which the Housing Successor Fund 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 Fund 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.
-9-449
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2015
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 balance at June 30, 2015, is presented below:
Nonspendable:
Property held for resale & development
Restricted for:
Low and moderate income housing
-10 -
Low-Mod Income
Housing Asset
Fund
$ 7,429,564
214, 116
$ 7,643,680
450
Housing Successor Fund of the City of Moorpark
Addendum to the Annual Progress Report
For Fiscal Year Ended June 30, 2015
Attachment 6
451
735 E. Carnegie Dr Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Brenda L. Odle. CPA. MST
Terry P. Shea. CPA
Kirk A. Franks. CPA
Scott W. Manno. CPA. CGMA
Leena Shanbhag. CPA. MST. CGMA
Jay H. Zercher. CPA (Partner Emeritusi
Phillip H. Waller. CPA (Partner Emeritus)
DIRECTORS
Bradferd A. Welebir, CPA. MBA
MANAGERS I STAFF
Jenny Liu. CPA. MST
Seong-Hyea Lee. CPA. MBA
Charles De Simoni. CPA
Yiann Fang. CPA
Nathan Statham. CPA. MBA
Brigitta Bartha. CPA
Gardenya Duran, CPA
Juan Romero. CPA
Ivan Gonzales. CPA. MSA
Brianna Pascoe. CPA
Daniel Hernandez. CPA. MBA
MEMBERS
American Institute of
Certified Public Accountants
PCPS The A/CPA Alliance
for CPA Firms
Gavernmenwf Audit
Quality Center
California Society of
Certified Public Accountants
ROGERS, ANDERSON. MALODY & SCOTT. LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
Independent Accountant's Disclaimer Report Applied to the
Preparation of the Addendum to the Annual Progress Report of the
Housing Successor of the City of Moorpark
To Management of the
Housing Successor of the City of Moorpark
Moorpark, California
We have prepared the accompanying Addendum to the Annual Progress
Report ("Addendum to the APR") of the Housing Successor of the City of
Moorpark ("Housing Successor") as of June 30, 2015 and for the year
then ended in accordance with the reporting provisions of the California
Health & Safety Code Section 34176 as amended by Senate Bill 341
(Chapter 796, Statutes of 2013, effective January 2014) ("SB 341").
Management of the Housing Successor is responsible for the preparation
and fair presentation of the Addendum to the APR in accordance with the
reporting provisions of SB 341, and for designing, implementing, and
maintaining internal control relevant to the preparation and fair
presentation of the Addendum to the APR.
The accompanying Addendum to the APR of the Housing Successor of
the City of Moorpark ("Housing Successor") as of June 30, 2015 and for
the year then ended was not subjected to an audit, review, or compilation
engagement by us and, accordingly, we do not express an opinion,
conclusion, nor provide any assurance on it.
This Addendum to the APR 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.
San Bernardino, California
December 30, 2015
STABILITY. ACCURACY. TRUST.
5;01r
J
Llf'
452
Housing Successor of the City of Moorpark
Addendum to the Annual Progress Report
For Fiscal Year Ended June 30, 2015
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 $2, 677 from use of money and property and
$19,800 from charges for services as of June 30, 2015. 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, 2015 was $7,643,680, 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, 2015 were $26, 165 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, 2015.
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, 2015.
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, 2015 was $7,429,564.
453
Addendum to the Annual
Progress Report
For the Year Ended June 30, 2015
Page2
The value of loans and notes receivable in the Housing Successor Fund as of June
30, 2015 was $1,997,472.
The sum of the statutory value of real properly and the value of loans and notes
receivable owned by the Housing Successor Fund adds up to $9,427,036.
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, 2015.
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, 2015, the Housing Successor Fund's real properly interests were as
follows: {see page 3).
454
Addendum to the Annual
Progress Report
Property Description
Land, Regal Park Condo -1.15 acres
Land, W/Buildings -782 Moorpark Awnue -old Fire Station
(swaped with 285 High Street new Fire Station)
Land, W/House -798 Moorpark Awnue (Public Works Office and
Parking Lot)
Land, W/House -81 Char1es
Land, W/House -81 Char1es
Land, 765 Walnut Street
Land, 765 Walnut Street
Land, 250 E LA Awnue
Land, 1095 Walnut Canyon
Land, 1095 Walnut Canyon
Land, 1113 Walnut Canyon
Land, 1113 Walnut Canyon
Land, 460 Char1es Street
Land, 460 Char1es Street
Land, 450 Char1es Street
Land, 450 Char1es Street
Land, 450 Char1es Street
Land, 1293 Walnut Canyon
Land, 1293 Walnut Canyon
Land, 1331 Walnut Canyon
Land, 1331 Walnut Canyon
Land, 484 Char1es Street
Land, 484 Char1es Street
Land. w/ House -1063 Walnut Canyon Road
Land, w/ House -1063 Walnut Canyon Road
Land, w/ House -1073 Walnut Canyon Road
Land, w/ House -1123 Walnut Canyon Road
Land, w/ House -1123 Walnut Canyon Road
Land, w/ House -1083.Walnut Canyon Road
Land, w/ House -1083 Walnut Canyon Road
Land, w/ House -112 First Street
112 First Street, Demolition
124 First Street
Year of
Acquisition
1992
2000
2001
2004
2007
2007
2008
2007
2007
2008
2007
2008
2007
2008
2008
2009
2009
2008
2009
2008
2009
2008
2009
2008
2009
2009
2008
2009
2010
2011
2010
2011
2010
$
$
For the Year Ended June 30, 2015
Page3
Value Status on compliance
with 33334.16
170, 100 In Compliance
110,737 In Compliance
221,320 In Compliance
339,491 In Compliance
4,083 In Compliance
451,492 In Compliance
62,000 In Compliance
578,814 In Compliance
10,500 In Compliance
356,650 In Compliance
10,470 In Compliance
386,915 In Compliance
13,050 In Compliance
436,855 In Compliance
470,531 In Compliance
40,507 In Compliance
11,112 In Compliance
519,985 In Compliance
12,556 In Compliance
387,640 In Compliance
8,517 In Compliance
481.681 In Compliance
16,610 In Compliance
464,859 In Compliance
9,675 In Compliance
301,073 In Compliance
477,782 In Compliance
10,950 In Compliance
703,202 In Compliance
8,472 In Compliance
12,940 In Compliance
4,020 In Compliance
334,974 In Compliance
7,429,5~
455
Addendum to the Annual
Progress Report
For the Year Ended June 30, 2015
Page4
As of June 30, 2015, 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, 2015, 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 (8) 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, 2015, 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, 2015 or at
any point during the fiscal year.
456