HomeMy WebLinkAboutAGENDA REPORT 2012 0307 CC REG ITEM 10B ITEM 10.B.
MOORPARK CITY COUNCIL
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TO The Honorable City Council _ -
FROM: Ron Ahlers, Finance Director
DATE: February 22, 2012 (CC Meeting of March 7, 2012)
SUBJECT: Consider Annual Financial Statements and Other Audit Reports for
Fiscal Year Ended June 30, 2011
SUMMARY
The Comprehensive Annual Financial Report {CAFR}, Management Letter, Single Audit
Report, 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 and the Independent
Auditor's memo regarding the audit process of the City of Moorpark for June 30, 2011
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 Teaman, Ramirez & Smith, Inc. Certified Public Accountants {TRS}
conducted the annual audit and with staff assistance prepared the required financial
statements. For the fiscal year ended June 30, 2011, the City received an unqualified
opinion. The City currently has six bond issues for which it is responsible (three
redevelopment bonds and three assessment district bonds). The bond proceeds from
these six issues have been spent in accordance with the bond documents.
AWARD
The Government Finance Officers Association of the United States and Canada
(GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to
the City for its comprehensive annual financial report for the fiscal year ended June 30,
2010. In order to be awarded a Certificate of Achievement, a government unit must
publish an easily readable and efficiently organized comprehensive annual financial
report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the Certificate of
Achievement Program's requirements and we are submitting it to the GFOA to
determine its eligibility for another certificate.
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Honorable City Council
March 7, 2012
Page 2
DISCUSSION
CAFR
Attached for your approval are the annual financial statements for the year ended June
30, 2011 for the City of Moorpark. The financial statements are comprehensve and
include all of the fund types in the City.
The City Council engaged an independent certified public accounting firm, TRS, to
perform the annual audit of the City of Moorpark and its component units. The results of
the audit performed are formally published in the CAFR. This report must satisfy both
Generally Accepted Accounting Principles (GAAP) and applicable legal requirements.
Additionally, the CAFR is sent out to numerous government agencies and financial
institutions in order to comply with various reporting, financial and subsequent bond
disclosure requirements. The overall financial picture of the City is presented, in
accordance to the Governmental Accounting Standards Board (GASB)
pronouncements, on a Government-wide basis. This is designed to provide readers
with a broad overview of the City's finances similar to a private-sector business. These
statements show the June 30, 2011 fiscal year balances and overall results of
operations for the period then ended, for all City funds, including the Redevelopment
Agency. The 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 2010/11
audit, the City of Moorpark received an unqualified opinion.
The Statement of Net Assets presents information on all of the City's assets and
liabilities, with the difference between the two reported as net assets. Over time,
increases or decreases in net assets (page 21) 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 assets
changed during the most recent fiscal year. All changes in net assets are reported as
soon as the underlying event giving rise to the change occurs, regardless of the timing
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). A decrease in net assets of $16.5 million was
reported in fiscal year 2010/11 (page 22). The decrease is attributable to two main
events. The City spent approximately $14 million from the Moorpark Highlands
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Honorable City Council
March 7, 2012
Page 3
Improvement Bonds on a bond call and allowable developer reimbursements. The
Ruben Castro Human Services Center expenditure of approximately $2.1 million was
funded by the 2006 Agency bond proceeds.
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, parks and recreation and interest on long-term debt.
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 Assets and Liabilities, Agency Funds is located on page 31.
All of these statements are followed by the Notes to the Financial Statements.
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.
As of March 2, 2012 the CAFR was placed on the City's website:
http://ci.moorpark.ca.us
General Fund Financial Status
For fiscal year ended June 30, 2011, the General Fund unreserved fund balance
totaled $3.0 million, which equates to approximately 22% of operating expenses. Per
Council policy the City transferred in $361,264 from the Special Projects Fund this past
year. Please recall that the General Fund paid down a number of liabilities and funded
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Honorable City Council
March 7, 2012
Page 4
certain projects this past year, refer to page 16 of the CAFR for the detail listing. Had
these not been approved the General Fund would have ended the year with a surplus
of approximately $2.3 million.
Management Letter and Single Audit Report
As part of the annual audit, the independent auditors are also required to report to
management regarding internal controls and the City's compliance with federal grants.
The independent auditors issue two reports to satisfy this requirement: Management
Letter and Single Audit Report.
Management Letter
It is standard practice for the independent auditors to note recommendations for
improvement in the Management Letter.
There are various levels of observations that are reported to management. The first and
most serious type of observation is known as a "material weakness". A material
weakness is a significant deficiency, or a combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial
statements will not be prevented or detected. The independent auditors reported no
"material weakness" for the City.
The second level of deficiency is a "significant deficiency". A significant deficiency is a
control deficiency, or a combination of control deficiencies, that adversely affect the
entity's ability to authorize, initiate, record, process or report financial data reliably in
accordance with generally accepted accounting principles such that there is more than
a remote likelihood that a misstatement of the entity's financial statements that is more
than inconsequential will not be prevented or detected. The independent auditors
reported no "significant deficiency" for the City.
The third and final category of observations identified by the independent auditors is
that of "control deficiency". A control deficiency 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 financial statement misstatements on a
timely basis. A deficiency in design exists when a control necessary to meet the control
objective is missing, or when an existing control is not properly designed so that even if
the control operates as designed, the control objective is not always met. A deficiency
in operation exists when a properly designed control does not operate as designed or
when the person performing the control does not possess the necessary authority or
qualifications to perform the control effectively. These comments are intended to
improve internal controls or result in other operating efficiencies. The independent
auditors reported three such observations. (1) Purchasing Policy — Staff will prepare
appropriate policies and procedures for consideration by the City Council. (2)
Developer Deposit Funds — Staff will continue to reconcile the developer deposit funds.
(3) Fraud Prevention and Detection Program — The City will research fraud prevention
programs to train new and existing staff. Additionally, staff will research a fraud
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Honorable City Council
March 7, 2012
Page 5
Single Audit Report— (Report required this year)
The City was required to conduct a single audit this year because the City did meet the
$500,000 federal grant expenditure threshold. The Single Audit is specifically designed
to meet the needs of all federal grantor agencies from which the City receives funds.
Total federal assistance amounted to $2.3 million. Over half of which was the purchase
of the three natural gas buses in the amount of $1.2 million. The independent auditors
noted no findings in this report for the fiscal year ended June 30, 2011.
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, 2011.
Independent Accountant's Report on Agreed-Upon Procedures Applied to
Appropriations Limit Worksheets
The independent auditors noted no findings for the City's calculations with regards to
the appropriations limit for the fiscal year ended June 30, 2011.
Independent Auditor's memo regarding the audit process
The independent auditors noted no findings for the audit process for the fiscal year
ended June 30, 2011.
STAFF RECOMMENDATION (Roll Call Vote)
Accept the Comprehensive Annual Financial Report (CAFR), Management Letter,
Single Audit report, 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, and the
Independent Auditor's memo regarding audit process and receive and file this report.
Attachments:
1. City of Moorpark CAFR for Fiscal Year Ending June 30, 2011
2. Management Letter
3. Single Audit Report on Federal Award Programs, year ended June 30, 2011
4. 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
5. Independent Accountant's Report on Agreed-Upon Procedures Applied to
Appropriations Limit Worksheets
6. Independent Auditor's memo regarding the audit process
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COMPREHENSIVE ANNUAL
FINANCIAL REPORT
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CITY OF MOORPARK,CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended June 30,2011
Prepared By:
Ron Ahlers,Finance Director
Irmina Lumbad,Budget& Finance Manager
Debbie Burdorf,Accountant I
205
City of Moorpark
Comprehensive Annual Financial Report
Year Ended June 30,2011
TABLE OF CONTENTS
PAGE
I. INTRODUCTORY SECTION
Letter of Transmittal i - vi
Directory of Officials vii
Organizational Chart viii
Certificate of Achievement of Excellence in Financial Reporting ix
H. FINANCIAL SECTION
Independent Auditors' Report 1 -2
Management Discussion & Analysis 3 -20
Basic Financial Statements:
Government-wide Financial Statements
Statement of Net Assets 21
Statement of Activities 22
Fund Financial Statements
Balance Sheet-Governmental Funds 23 -25
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Assets 26
Statement of Revenues, Expenditures and Changes in Fund Balances - 27-29
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures,and Changes
in Fund Balances of Governmental Funds to the Statement of Activities 30
Statement of Fiduciary Assets and Liabilities 31
Notes to Financial Statements 32 - 74
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual-General Fund 75 - 78
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual - Street and Traffic Safety Development
Special Revenue Fund 79
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual—Assessment District Special Revenue Fund 80-81
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual - Endowment Special Revenue Fund 82
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual - Park/Public Facilities Special Revenue Fund 83
206
City of Moorpark
Comprehensive Annual Financial Report
Year Ended June 30,2011
TABLE OF CONTENTS-Continued
PAGE
Required Supplementary Information -Continued:
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual—MRA Operating Special Revenue Fund 84- 85
Notes to Required Supplementary Information 86
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 87
Redevelopment Agency Capital Projects Fund 88
Redevelopment Agency Debt Service Fund 89
Non-Major Governmental Funds 90 - 91
Combining Balance Sheet 92 -95
Combining Statement of Revenues,Expenditures and Changes in Fund Balance 96-99
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual:
Library Services Special Revenue Fund 100
Traffic Safety Special Revenue Fund 101
Affordable Housing Special Revenue Fund 102
Los Angeles Area of Contribution Special Revenue Fund 103
Tierra Rejada/Spring A.O.0 Special Revenue Fund 104
Cassey/Gabbert Area of Contribution Special Revenue Fund 105
Freemont Storm Drain A.O.0 Special Revenue Fund 106
State and Federal Assistance Special Revenue Fund 107
State Gas Tax Special Revenue Fund 108
Prop 1B Local Streets and Roads Special Revenue Fund 109
Art in Public Places Special Revenue Fund 110
Prop 1B Safety and Security Special Revenue Fund 111
Low and Moderate Income Housing Special Revenue Fund 112
Local Transportation Transit Special Revenue Fund 113
Solid Waste Special Revenue Fund 114
Capital Projects Fund 115
City Hall Building Capital Projects Fund 116
Equipment Replacement Capital Projects Fund 117
Statement of Changes in Net Assets-Agency Funds 118
III. STATISTICAL SECTION
Net Assets by Component- Last Nine Fiscal Years 119- 120
Changes in Net Assets Governmental Activities-Last Nine Fiscal Years 121 - 122
Fund Balances of Governmental Funds- Last Nine Fiscal Years 123 - 124
Changes in Fund Balances of Governmental Funds- Last Nine Fiscal Years 125 - 126
207
City of Moorpark
Comprehensive Annual Financial Report
Year Ended June 30,2011
TABLE OF CONTENTS-Continued
PAGE
III. STATISTICAL SECTION-Continued
Assessed Value and Estimated Actual Value of Taxable Property-
Last Ten Fiscal Years 127
Direct and Overlapping Property Tax Rates-Last Ten Fiscal Years 128
Principal Property Tax Payers-Current Year and Ten Years Ago 129
Property Tax Levies and Collections-Last Ten Fiscal Years 130
Ratios of Outstanding Debt by Type-Last Ten Fiscal Years 131
Ratio of General Bonded Debt Outstanding-Last Ten Fiscal Years 132
Direct and Overlapping Debt 133
Legal Debt Margin Information-Last Ten Fiscal Years 134- 135
Pledged Revenue Coverage-Last Ten Fiscal Years 136
Demographic and Economic Statistics-Last Ten Calendar Years 137
Principal Employers-Current and Ten Calendar Years Ago 138
Full-Time and Part-Time City Employees by Function-Last Ten Fiscal Years 139
Operating Indicators by Function- Last Ten Fiscal Years 140
Capital Asset Statistics by Function-Last Ten Fiscal Years 141
208
INTRODUCTORY SECTION
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City a MDOY aY
799 Moorpark Avenue, Moorpark, California93021 (805)517-6200 fax(805)532-2545
December 13, 2011
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, 2011. 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 Assets that provides the total net 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 Assets has been prepared to reflect the changes between the two reporting methods. In
addition, the reporting model includes an emphasis on the City's major funds as shown in the
Governmental Fund Statements. These statements and other significant information are analyzed
in the narrative section called Management's Discussion and Analysis (MD&A). The MD&A
provides "financial highlights" and a brief overview of the basic financial statements. In
addition, the MD&A provides the readers of the City's financial statements with financial trends,
explanation of variances and economic factors for the upcoming fiscal year's budget.
Furthermore, in May 2004, the GASB issued Statement No. 44, Economic Condition Reporting.
This statement requires the statistical section to be presented with detailed information, typically
in ten-year trends, that assists users in utilizing the basic financial statements, notes to basic
financial statements, and required supplementary information to assess the economic condition
of a government. This statement was effective starting with fiscal year 2005/06 and has resulted
in changes to the statistical section. The City continues to present the statistical section with
detail information to be in compliance with GASB No. 44 requirements for fiscal year 2010/11.
JANICE S. PARVIN DAVID POLLOCK KEITH F. MILLHOUSE ROSEANN MIKOS MARK VAN DAM
Mayor Mayor Pro Tern Councilmember Councilmember Councilmember
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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.
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
Redevelopment Agency (Agency), the Moorpark Public Financing Authority (Authority) and the
Moorpark Industrial Development Authority (IDA).
The City was incorporated in 1483 as a general law city and operates under a Council-Manager
form of government.
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 p ject area.
The Authority was formed in 1993 as a joint powers authority between the City and the 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 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.
PROFILE OF THE CITY OF MOORPARK
The City provides a full range of services to its residents with a total regular full-time staff of
approximately 56 and part-time staff of approximately 45 employees. Major services such as
police (contracted with Ventura County Sheriff), attorney, library, development engineering and
inspection, building and safety plan check/inspection, transit, street sweeping and landscape
maintenance are provided through contractual arrangements. In addition, fire protection is
provided by the Ventura County Fire District. The City provides services such as emergency
management, redevelopment, housing, planning, code compliance, recreation programs,
vector/animal control, park and facilities maintenance, street maintenance, city engineering,
crossing guard and administrative management services with city employees.
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HISTORY OF THE CITY OF MOORPARK
In 1887, Robert W. Poindexter was granted title to the present site of Moorpark. He named the
City after the Moorpark apricot which grew throughout the valley. Poindexter plotted Moorpark
city streets and planted Pepper trees in the downtown area. The City was incorporated in 1983 as
the tenth city of Ventura County with a Council-Manager form of government. The Mayor is
elected at large to serve a two-year term. The four Council Members are elected at large to serve
staggered four-year terms. The size of the City was 12.36 square miles with a population of
about 10,000 at incorporation and is currently at 12.44 square miles with a population of
approximately 34,710 (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.
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ANNUAL AUDIT
An independent accounting firm has performed the annual audit of the City's financial
statements for the fiscal year ended June 30, 2011. 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 XIIIB of the California Constitution (Proposition 4), commonly referred to as the "Gann
Initiative" was approved by California voters in 1979, which placed limits on the amount of
proceeds of taxes that State and Local agencies can appropriate and spend each fiscal year. In
addition, voters approved Proposition 1 l 1 in 1990 to further increase the accountability of local
government in adopting their limits by requiring the governing body to annually adopt, by
resolution, an appropriation limit for the upcoming fiscal year. The appropriation limit and the
City's appropriations subject to the limit for fiscal year 2010/11 amounted to $25,896,031 and
$13,088,019 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, 2011, approximately $51.4 million (City & Agency
combined) was invested with the Ventura County Pool; $27.2 million in various U.S. Treasury
Notes and Agency Securities; about $15.5 million in the State Treasurer's Local Agency
Investment Fund (LAIF); and $0.1 million was invested in Certificate of Deposits (CDs).
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 infrastructure reporting, whereby depreciation expense and accumulated
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depreciation have been recorded. Capital assets for the fiscal year ended June 30, 2011 have a
net ending balance of$145.8 million.
LONG-TERM LIABILITIES/BONDED LIABILITIES
At June 30, 2011, the City has no outstanding bonds or other debt but does have long-term
liabilities in the approximate amount of $0.7 million for employee compensated absences
(accrued leave). The City paid off$1.3 million for Pension related liabilities.
The Agency has the 1999 Tax Allocation Refunding Bonds, the 2001 Tax Allocation Bonds and
the 2006 Tax Allocation Bonds outstanding in the amounts of $5.0 million, $11.5 million and
$11.4 million, respectively. The purpose of the 1999 Bonds was to advance refund the Agency's
previously issued 1993 Tax Allocation Bonds. The purpose of the 2001 and 2006 bonds were to
finance a portion of the costs of implementing the Redevelopment Plan and fund redevelopment
activities within the Agency project area.
RISK MANAGEMENT
The City is a member of the California Joint Powers Insurance Authority (CJPIA) established
under the provisions of California Government Code 6500 et seq., consisting of over 100
California public entities. The CJPIA provides risk coverage for its members through the
pooling of losses and purchased insurance. The coverage extends to general liability and
workers' compensation administered by CJPIA. In addition, the City also participates in the all-
risk property protection offered by CJPIA. Various control techniques, including safety,
ergonomic, harassment and driver awareness training have been implemented to minimize
losses.
AWARD
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its
comprehensive annual financial report for the fiscal year ended June 30, 2010. In order to be
awarded a Certificate of Achievement, a government unit must publish an easily readable and
efficiently organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
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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, Teaman, Ramirez &
Smith, Inc., Certified Public Accountants for their professional assistance. As in the
past, the CAFR is available on the City's website at www.ci.moorpark.ca.us.
Respectfully submitted,
A I,
STEVEN KUENY RON AHLERS
CITY MANAGER FINANCE DIRECTOR
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City of Moorpark
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ComprehensiveAnnual Financial Report
For the Fiscal Year Ended June 30, 2011
DIRECTORY OF CITY OFFICIALS
CITY COUNCIL
Janice S. Parvin, Mayor
Roseann Mikos, Councilmember David Pollock, Councilmember
Keith F. Millhouse, Councilmember Mark Van Dam, Councilmember
CITY MANAGEMENT STAFF
Steven Kueny, City Manager
Hugh Riley, Assistant City Manager
Deborah Traffenstedt, Deputy City Manager
David Bobardt, Community Development Director
David Klotzle, City Engineer/Public Works Director
Ron Ahlers, Finance Director
vii
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CITY OF MOORPARK
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City Manager
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Assistant City Manager
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Library Board Community Services Department
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Animal RegulationNector Control
Police Services Art in Public Places
(Contract) Emergency Services
Library
Parks/Landscape/Facilities Maintenance
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1 Recreation
Community Deputy City Manager Finance City Engineer/
Development Administrative Services/ , Public Works
Department City Clerk Department I Department
i
Advance Planning City Clerk Assessment District Street Capital Projects
Building and Safety Human Resources Lighting Crossing Guards
Business Registration Information Systems Cash Management Engineering
CDBG Administration Intergovernmental Central Services NPDES
Code Compliance Community and Legislative Finance and Accounting Parking Enforcement
Current Planning Relations Fixed Assets Management Solid Waste
Economic Development Public Information/Cable TV Payroll Street Maintenance
Housing Risk Management Purchasing Transit
Property Management
Redevelopment
viii
N.)
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i
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
1
City of Moorpark
Califronia
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30,2010
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
and financial reporting.
tE OPpie
k• OF THE 4tr L��^"`"""-`j• x9444640--".
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CAWL DA 'co
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Executive Director
ix 219
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220
FINANCIAL SECTION
221
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1
222
FRSTEAMAN,RAMIREZ&SMITH,INC.
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditors'Report
The Honorable City Council
The City of Moorpark,California
We have audited the accompanying fmancial 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, 2011,which collectively comprise the City's basic financial statements as listed in the
table of contents. These financial statements are the responsibility of the City's management. Our
responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our 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, 2011, and the respective changes in financial position thereof
for the year then ended in conformity with accounting principles generally accepted in the United States of
America.
As discussed in Note 13 to the financial statements,there have been recent changes in legislation affecting
redevelopment agencies in the State of California which requires the dissolution of redevelopment agencies
as of February 1,2012,including the Moorpark Redevelopment Agency.
As described in Note 12 to the fmancial statements, the City adopted the provisions of GASB Statement
No. 54,Fund Balance Reporting and Governmental Fund Type Definitions, as of June 30,2011.
In accordance with Government Auditing Standards, we have also issued our report dated December 13,
2011 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 and should be considered in assessing the results of our audit.
Richard A.Teaman, CPA• Greg W. Fankhanel, CPA• David M. Ramirez, CPA• Javier H. Carrillo, CPA
4201 Brockton Ave. Suite 100, Riverside CA 92501 • 951.274.9500 • 951.274.7828 FA • www.trscpas.com
223
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages 3 through 20, and the budgetary comparison information on pages 75
through 85 be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our inquiries,
the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or to provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's financial statements as a whole. The introductory section, supplementary information
section, and statistical section, as listed in the table of contents are presented for purposes of additional
analysis and are not a required part of the financial statements. The statements and schedules included in
the supplementary information section 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. The
information has been subjected to the auditing procedures applied in the audit of the financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statement 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 the financial statements as a whole. The introductory and statistical sections have not
been subjected to the auditing procedures applied in the audit of the financial statements and, accordingly,
we do not express an opinion or provide any assurance on them.
December 13,2011
2
224
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
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, 2011. 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 2010/2011 by
$231,898,610 (Net Assets). Of this amount, $13,405,316 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 34 defines"Net Assets" as assets less liabilities. GASB 34 requires the
City to record infrastructure assets (streets, parks, buildings, etc.) less accumulated
depreciation as a restricted fund balance titled, "Invested in Capital Assets". It also
requires the CAFR to record all of the debt, $27.9 million, of the Moorpark
Redevelopment Agency (Agency). These factors, along with restrictions for Special
Revenue Funds, reduce the Total Net Assets ($231,898,610) to the Unrestricted Net
Assets(13,405,316). The Statement of Net Assets is presented on page 21.
• The City's Total Net Assets decreased by $16,529,952 during the current fiscal year. The
decrease is attributable to two main events. The City spent approximately $14 million
from the Moorpark Highlands Improvement Bonds on a bond call and allowable
developer reimbursements. The Ruben Castro Human Services Center expenditure of
approximately $2.1 million from the 2006 Agency bond proceeds. The Statement of
Activities is presented on page 22.
• As of June 30, 2011, the City's governmental funds (General Fund, Special Revenue
Funds, Debt Service Funds, and Capital Projects Funds) reported combined ending fund
balances of$111,947,831, a decrease of$20,834,094, from the prior year. In addition to
the expenses listed above, the City spent $2 million on open space land acquisition off of
Tierra Rejada Road.
• At the end of the current fiscal year, fund balances for the General Fund were $3,149,884
($220,976 is in nonspendable form, $149,884 is restricted for the Public Works fund and
$2,779,024 is unassigned).
3
225
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
• The City's total Long—Term Liabilities decreased by $1,874,794 or 6.2% during the
current fiscal year. The majority of the decrease is the pension related debt payoff("side
fund") of $1.3 million. The remaining decrease is attributable to the fiscal year's
regularly scheduled debt service payments for the Agency's 1999, 2001 and 2006 Tax
Allocation Bonds. These bonds are not a debt of the City, but a debt of the Agency and
only a pledge of the property tax increment generated by the Agency.
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 assets 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.
The statement of net assets presents information on all of the City's assets and liabilities, with
the difference between the two reported as net assets. Over time, increases and decreases in net
assets may serve as a useful indicator of whether the financial position of the City is improving
or deteriorating.
4
226
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
The statement of activities presents information showing how the City's net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (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 Redevelopment Agency (Agency), the 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 government-wide financial statements can be found on pages 21 and 22 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City,
like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the City can be divided
into two categories: governmental funds and fiduciary funds.
Governmental Funds. Governmental Funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating the City's near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the City's near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures and changes in fund balances, provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains a variety of individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the General Fund, Street and Traffic
5
227
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
Safety, Community Development, Assessment District, Endowment, Parks/Public Facilities,
MRA Operating, Police Facilities Fee, Moorpark Highlands Improvement, Redevelopment
Agency Capital Projects, Special Projects and Redevelopment Agency Debt Service. 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 all its funds. A budgetary comparison statement is
provided for all funds with an annually adopted budget to demonstrate compliance with their
respective budgets. The budgetary comparison statements are located in the basic financial
statements. The non-major governmental fund budgetary comparisons are located in the non-
major governmental funds section of the report.
Fiduciary Funds. Fiduciary funds, which consist solely of trust and agency funds, are used to
account for resources held for the benefit of parties outside the government. Fiduciary funds are
not reflected in the government-wide financial statements because the resources of the fund are
not available to support the City's own programs. Fiduciary funds are custodial in nature and,
therefore, the accounting used does not involve the measurement of the results of operations.
The basic fiduciary fund financial statement can be found on page 31 of this report.
Notes to the Basic Financial Statements. The notes to the basic financial statements provide
additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements. The notes to the basic financial statements can
be found on pages 32-74 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 assets may serve over time as a useful indicator of a government's financial
position. In the case of the City, assets exceeded liabilities by $231.9 million at the close of the
current fiscal year.
The City's net assets invested in capital assets, net of related debt reflects a positive $145.8
million. The only debt is from the Agency. As shown on Table 1, the largest portion of the
6
228
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
City's net assets (63%) is its investment in capital assets. The City uses these capital assets
(parks, streets, sidewalks, etc.) to provide services to citizens; consequently, these assets are not
available for future spending.
An additional portion of the City's net assets (31%) represents resources that are subject to
external restrictions on how they may be used. The major restrictions on net assets are funding
source restrictions. The remaining balance of total net assets (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, 2011, the City reported positive balances in all three categories of net assets, both
for the City as a whole, as well as for its separate governmental activities.
Table 1
Net Assets
Governmental Activities
As of June 30,2011 and 2010
2011 2010
Assets:
Current and other assets $ 120,733,509 $ 143,511,765
Capital assets 145,841,042 141,095,551
Total Assets 266,574,551 284,607,316
Liabilities:
Long-term debt outstanding 27,640,038 29,430,677
Other liabilities 7,035,903 6,748,077
Total Liabilities 34,675,941 36,178,754
Net Assets:
Invested in capital assets,
net of related debt 145,841,042 141,095,551
Restricted 72,652,252 91,504,803
Unrestricted 13,405,316 15,828,208
Total Net Assets $ 231,898,610 $ 248,428,562
The City's net assets decreased by $16.5 million during the current fiscal year.
7
229
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
Table 2
Changes in Net Assets
Governmental Activities
As of June 30,2011 and 2010
2011 2010
Revenues
Program Revenues:
Charges for services $ 3,957,412 $ 4,148,970
Operating contributions and grants 5,999,168 4,128,842
Capital contributions and grants 1,703,076 1,970,931
General Revenues:
Property taxes 7,287,282 7,449,063
Tax increment 6,755,960 6,864,777
Franchise taxes 1,207,778 1,171,825
Sales taxes 2,577,105 2,382,010
Sales tax in lieu 940,791 588,635
Motor vehicle in lieu tax 170,592 109,136
Investment income 856,413 853,074
Other 212,487 283,372
Special Item—County Settlement - -
Total Revenues 31,668,064 29,950,635
Expenditures
General government 3,201,184 1,603,279
Public safety 7,070,049 7,016,015
Public services 31,775,462 13,589,878
Parks and recreation 4,658,717 4,934,002
Interest on long-term debt 1,492,604 1,504,502
Total Expenditures 48,198,016 28,647,676
Increase in net assets (16,529,952) 1,302,959
Net assets-July 1, 248,428,562 239,673,695
Prior Period Adjustment - 7,451,908
Net assets-June 30, $ 231,898,610 $ 248,428,562
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CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
Capital Program Revenues
contributions and
grants Charges for
15% services
,� 34%
Operating
contributions and
grants
51%
General Revenues
Motor vehicle Investment
Sales tax in lieu tax Other
income
0 1%
in lieu 1� 4%
5%
Sales taxes Property taxes
13% \, 36%
Franchise
taxes
6%
Tax increment
34%
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231
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
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 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
$111,947,831. This is a decrease of$20,834,094 in comparison with the prior year. About$15,083,570
or 13.5% is nonspendable, $66,565,551 or 59.5% is restricted to specific purpose, $795,208 or 0.70% is
committed, $28,849,138 or 25.8% is assigned and approximately $654,364 or 0.6%of the fund balances
constitutes unassigned fund balance.
General Fund (includes Community Development Fund,Public Works Engineering Fund)
The implementation of GASB 54 also affected the standard for classifying a fund as Special Revenue
fund type. Thus, the General Fund, as presented in the fund financial statements, includes the
Community Development 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 $3,149,884, which increased by
$100,362 or 3.3% 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 20% of total
General Fund expenditures and transfers out. This is a healthy reserve.
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232
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
Key factors for revenues and expenses when compared to fiscal year 2009-10 are as follows:
• The City's share of property taxes decreased by approximately $160,100 or 2.4%.
• Sales tax revenues grew by approximately $195,100 or 8.2% as we slowly emerge from the
economic downturn.
• The Sales Tax Compensation or"triple flip"also increased by $352,156 or 60%. This revenue is
calculated by the State each year and it reflects the City's increased allocation of$940,790 due to
a 3.6%hike in state-wide sales tax revenues.
• Interest earnings decreased slightly by approximately $3,700 or 1.2% in response to still
declining rates in the market.
• Motor vehicle in lieu improved by $61,456 or 13%.
• Expenditures and transfers out ended the year approximately $2.7 million more than the prior
year figure primarily due to the payoff the following liabilities: CaIPERS side fund
($1,352,300), OPEB ($103,000) and general liability retrospective deposit balance due to the
California Joint Powers Authority(CJPIA)($473,300).
General Fund (Net) Financial Statements
The following Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance
reflect the net General Fund of the City. They do not include the Community Development Fund and
Public Works fund.
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233
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
BALANCE SHEET
GENERAL FUND (net)
As of June 30, 2011 and 2010
2011 2010
Assets
Cash and Investments $ 1,824,975 $ 2,433,246
Receivables
Taxes 882,172 708,818
Accounts 92,310 160,507
Interest 214,085 208,098
Notes and Loans 900,000
Due from other Funds 856,572 147,902
Advances to Other Funds 186,730
Prepaid Items 34,246 337,286
Total Assets 4,991,090 3,995,857
Liabilities
Accounts Payable and Accrued Liabilities 1,049,743 995,858
Deferred Revenue 941,347
Total Liabilities 1,991,090 995,858
Fund Balances
Reserved for Prepaid Items 337,286
Unreserved 2,662,713
Nonspendable 220,976
Unassigned 2,779,024
Total Fund Balances 3,000,000 2,999,999
Total Liabilities and Fund Balances $ 4,991,090 $ 3,995,857
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CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
STATEMENT of REVENUES, EXPENDITURES and CHANGES in FUND BALANCE
GENERAL FUND (net)
As of June 30, 2011 and 2010
2011 2010
Revenues
Taxes $ 11,217,370 $ 10,794,266
Licenses and Permits 158,186 146,915
Fines and Forfeitures 225,449 195,161
Use of Money and Property 507,320 492,505
Charges for Services 858,311 784,383
Intergovernmental 237,209 162,527
Other Revenues 192,084 133,789
Total Revenues 13,395,929 12,709,546
Expenditures
Current
General Government 2,289,299 1,497,916
Public Safety 6,239,338 6,076,995
Public Service 514,877 77,649
Parks and Recreation 1,062,128 1,486,374
Capital Outlay 259,158 99,215
Debt Service Principal 1,319,064
Total Expenditures 11,683,864 9,238,149
Excess (Deficiency) 1,712,065 3,471,397
Other Financing Sources (Uses)
Transfer In 361,264 136,398
Transfer Out (2,073,328) (3,813,625)
Total Other Financing Sources (Uses) (1,712,064) (3,677,227)
Net Change in Fund Balance 1 (205,830)
Fund Balance, Beginning of Year 2,999,999 3,205,829
Fund Balance, End of Year $ 3,000,000 $ 2,999,999
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235
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
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 decreased by $608,500 primarily due to the
acquisition of two parcels for capital improvement projects—Metrolink South Parking Lot Entrance and
North Hills Parkway.
Assessment District Fund
The fund balance of the Assessment District Fund decreased by $109,600 from the prior year due to
installation of central irrigation system at various locations. A portion of these expenditures were
funded by the General Fund reserve.
Endowment Fund
The fund balance of the Endowment Fund decreased by $1,889,700, due to acquisition of 80 acres
outside the City limits south of Tierra Rejada Road for open space preservation.
Park/Public Facilities Fund (Includes ten (10) various development fee related funds)
The fund balance of the Park Improvement Fund declined by $739,500 primarily due to refund of
duplicate park development fees for Canterbury Lane I or Tract 5133; and the completion two capital
projects — construction of Glenwood Park restroom and the installation of playground equipment at
Arroyo Vista Community Park.
MRA Operating Fund
The fund balance of the MRA Operating Fund fell by $1,177,100 from the prior year in part due to a
payment to the State of California for the Supplemental Educational Revenue Augmentation Fund
(SERAF)of$396,400 and the conveyance of Post Office parking lot improvement to the City $334,000.
Police Facilities Fee Fund
The fund balance of the Police Facilities Fund improved by $46,000 from the prior year. These funds
are transferred to the Endowment Fund as payback for the loan to construct the Police Services Center.
14
236
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
Moorpark Highlands Improvement Fund
The Moorpark Highland Improvement Fund is one of six accounts held by the Fiscal Agent for the
Community Facilities District (CFD) No. 2004-1 (Moorpark Highlands) Special Tax Bonds 2006. The
Improvement account has been recorded under a capital projects fund to reflect the proceeds that have
been designated for capital improvement projects. Bond proceeds of$34 million have been deposited
into this fund. Of the $13,956,400 total expenditures, $6,062,800 was reimbursed to the developer,
Pardee Homes, for various street improvements and grading in the district; $7,833,400 was used for the
bond call last September 1, 2010; and the remaining balance of$60,200 was paid to various professional
consultants. The debt service portion of this bond issue has been recorded as an agency fund. Note that
the City is not obligated in any manner for this bond issue and is only limited to acting as an agent for
the assessed property owners and bondholders.
Redevelopment Agency Capital Projects Fund
The Redevelopment Agency Capital Projects fund balance decreased by $2,517,900 as a result of the
ongoing construction of the Ruben Castro Human Services Center (RCHSC) and the partial cost of
disposition of the Post Office parking lot improvement.
Special Projects Capital Projects Fund
The Special Projects Capital Projects fund balance was reduced by $550,000 due to the transfer of
$361,300 to the General Fund (1000) to maintain the $3 million required unreserved fund balance and
residual expenditures were used to partially finance two capital improvement projects: acquisition of the
property on 65 First Street for the Metrolink South Parking Lot entrance and the construction of the
RCHSC.
Redevelopment Agency Debt Service Fund
The fund balance of the Redevelopment Agency Debt Service Fund increased by $31,300 due to
investment earnings.
Non-Major Governmental Funds
The fund balance of all other Non-Major Governmental Funds grew by $535,700 from the previous
fiscal year.
15
237
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
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.
During FY 2010-11 the City used General Fund reserves to pay off liabilities or fund one-time expenses.
There was actually a negative surplus of $361,000 due to these expenditures; which amounted to
approximately $2.6 million. The City transferred $361,000 from the Special Projects Fund to the
General Fund in order to maintain the Council required $3 million reserve. The list of one-time
expenses:
CaIPERS Side Fund Payoff $ 1,352,318
CJPIA General Liability Payoff 473,291
Litigation 150,000
Central Irrigation System 132,269
Turf Restoration—Arroyo Vista Community Park 130,000
OPEB Unfunded Liability Payoff 103,000
LMD Engineering & Survey Study 100,000
Additional Transfer to LMDs 78,668
Fire Sprinklers& Alarm in Annex Building 66,105
Facility Repairs-City Hall Admin Building 49,514
Replace Acoustic Tiles Apricot Room 8,374
$2,643,539
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CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
CAPITAL ASSET AND LONG-TERM LIABILITIES
Capital Assets. The City's investment in capital assets as of June 30, 2011, amounted to $145.8 million
(net of accumulated depreciation). This investment, detailed in Table 3, includes land, 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 $4.7 million or 3.4%.
Construction in Progress shows the largest increase in 2011 at$2.9 million.
Table 3
Capital Assets (net of depreciation)
Governmental Activities
As of June 30,2011 and 2010
2011 2010
Land $ 38,857,043 $ 36,414,011
Construction in Progress 12,401,812 9,481,646
Buildings and improvements 29,248,760 29,632,142
Machinery and equipment 2,887,655 1,688,603
Infrastructure 62,445,772 63,879,149
Total $ 145,841,042 $ 141,095,551
As a result of the implementation of GASB No. 34, the City has continued to account for infrastructure
assets on its financial statements. The accompanying government-wide financial statements include
those infrastructure assets that were either completed during the current fiscal year or considered
construction in progress at current fiscal year-end.
Additional information on the City's capital assets can be found in Note 5 on pages 54 to 55 of this
report.
Long-term Liabilities
At the end of the current fiscal year, the City's long-term liability outstanding is $28.5 million. This is
comprised of $27.9 million in Agency Tax Allocation Bonded indebtedness and $0.7 million in
employee compensated absences payable. The bonds are solely a debt of the Agency and a pledge of its
property tax increment.
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CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
Table 4
Outstanding Long-Term Liabilities
Governmental Activities
As of June 30,2011 and 2010
2011 2010
Tax Allocation Bonds
(issued by the Agency) $ 27,878,410 $ 28,422,563
Employee Compensated Absences 661,562 673,139
Pension Related Debt 0 1,319,064
Total $ 28,539,972 $ 30,414,766
The total liabilities decreased by $1.5 million or 4.2%during the fiscal year. The decrease is attributable
to the $1.3 million payoff of the pension related debt("side fund") and the normal pay down of principal
on the Agency outstanding bonds.
Additional information on the City's long-term liabilities can be found in Note 6 on pages 55 to 59 of
the basic financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The State of California Department of Finance issued its December 2011 revised fiscal year 2011/12
General Fund revenue forecast to be $2.2 billion less than the specified levels of Section 3.94 of the
Budget Act. This triggered an automatic spending reductions on several programs outlined in Assembly
Bill No. 121, including reduced funding for higher education; health and human services,judiciary and
criminal justice, vertical prosecution grants, State grants to local libraries, etc. The revenue forecast
showed that although significant increases were seen from three biggest tax sources - personal income
tax ($1.529 billion higher), sales tax ($232 million lower) and corporation tax($467 million higher), the
net increase was not sufficient to offset the $4 billion additional revenues anticipated in May 2011
budget revision. Furthermore, the Vehicle License fee showed a decline of$80 million. Overall, the
State is expected to post an operating deficit of about$3 billion for fiscal year ending 2011/12.
The State's "Triple Flip" payment plan remains in effect as the State attempts to repay the $15 billion
deficit reduction bonds. The impact to the City will be on cash flow and the subsequent reduction in
interest income due to biannual (catch-up payments) rather than monthly sales tax payments.
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CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
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 xl 27 (ABx1 27) as part of the State budget
package. ABx1 26 essentially dissolves the existence of the redevelopment agency while ABx1 27
provides a way to continue the redevelopment agency's program if specified payments are made to the
State annually. On July 18, 2011 the League of California Cities and the California Redevelopment
Association (CRA), on behalf of cities, counties and redevelopment agencies, filed a lawsuit challenging
the constitutionality of these Bills. CRA asserts that both bills violate Article XIII Section 25.5(a)(7)(A)
added by Proposition 22. On August 11 and 17, the California Superior Court issued a stay on some
provisions of the ABx1 26 and ABx1 27. In the meantime, the City adopted Ordinance Nos. 46 and 47
last September 7 and 14, indicating that the City will comply with the Voluntary Alternative
Redevelopment Program in order to be permitted to continue the operations of the redevelopment
agency should the assembly bills be deemed to be constitutional by the Supreme Court. The City's
initial payment of$1,606,569 is expected to be paid in two installments - due by January 15, 2012 and
May 15, 2012. Thereafter, an estimated $381,000 will be due annually. On December 29, 2011, the
California Supreme Court issued their ruling upholding the constitutionality of ABxI 26 and
invalidating ABx1 27; thereby all redevelopment agencies within the State of California are abolished.
The fiscal year 2012/13 economic forecast from the State of California Legislative Analyst Office shows
a slower recovery from the recession. The nation's unemployment rate is projected to be 9.0%, while
the State will remain above 10.0% at 11.8%. The construction sector continues to show signs of
weakening as housing permits decline. Personal income is expected to grow by 4.0%and the Consumer
Price Index may increase by 1.5%. The State is forecasted to have 5.2% growth in personal income tax,
7.8% or $20 billion increase in sales and use tax and corporate tax will slightly dip. Despite these
revenue improvements, the State is likely to face an operating deficit of about $10 billion partly due to
the increasing costs from: a) Proposition 98, minimum funding guarantee to schools ($5.6 billion); b)
repayment of Proposition 1A, property tax loans used to balance 2009 budget ($2 billion); c) "settle-up"
to schools about $400 million; and d) loan payment to special funds ($1 billion). Governor Brown has
expressed plans of proposing tax initiatives in the November 2012 ballot, particularly a five-year 'h cent
increase in sales tax and income tax increase on $250,000 or higher filers.
For fiscal year 2011/12, the City took into consideration the following factors in preparing the budget:
• Sales Tax revenues assume a 2%decline from fiscal year 2010/11.
• Property Tax and Vehicle License fees revenue are projected to remain status quo.
• Interest income will remain stable at an average rate of return of just over 1%.
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CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2011
• Slight increase in PERS employer retirement rate from 8.475%to 9.539%effective July 1, 2011.
• Projections indicate our cost for general liability and workers compensation insurance will both
decrease for fiscal year 2011/12 when compared to fiscal year 2010/11 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 2011/12 budget as adopted by the City Council is a balanced budget and will
serve as a guide in planning for the future.
REQUESTS FOR INFORMATION
This management's discussion and analysis is designed to provide citizens, taxpayers, customers,
investors, and creditors with a general overview of the City's finances and to demonstrate the City's
accountability for the money it receives. If you have questions or need additional financial information,
please contact the Finance Department at City Hall, 799 Moorpark Avenue, Moorpark, CA 93021, or at
www.ci.moorpark.ca.us.
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BASIC FINANCIAL STATEMENTS
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244
City of Moorpark
Statement of Net Assets
June 30, 2011
Governmental
Activities
ASSETS
Cash and Investments $ 93,428,774
Receivables:
Taxes 901,268
Accounts 671,389
Interest 413,198
Notes and Loans 2,160,243
Prepaid Items 42,477
Property Held for Resale/Development 20,795,867
Restricted Cash and Investments 1,890,543
Debt Issuance Costs 429,750
Capital Assets:
Non-Depreciable:
Land 38,857,043
Construction in Progress 12,401,812
Depreciable,Net of Accumulated Depreciation:
Buildings and Improvements 29,248,760
Machinery and Equipment 2,887,655
Infrastructure 62,445,772
Total Assets 266,574,551
LIABILITIES
Accounts Payable and Accrued Liabilities 5,801,556
Interest Payable 334,413
Noncurrent Liabilities:
Due Within One Year 899,934
Due in More Than One Year 27,640,038
Total Liabilities 34,675,941
NET ASSETS
Invested in Capital Assets 145,841,042
Restricted for:
Public Services 58,823,769
Recreation Services 2,399,970
Public Safety 680,957
Debt Service 1,884,771
Low/Moderate Income Housing 8,862,785
Unrestricted 13,405,316
Total Net Assets $ 231,898,610
The accompanying notes are an integral part of this statement.
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245
City of Moorpark
Statement of Activities
Year Ended June 30, 2011
Program Revenues
Charges Operating Capital Net
for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities
Primary Government:
Governmental Activities:
General Government $ 3,201,184 $ 293,008 $ 71,130 $ $ (2,837,046)
Public Safety 7,070,049 492,847 122,870 (6,454,332)
Public Services 31,775,462 2,473,770 3,640,003 1,703,076 (23,958,613)
Parks and Recreation 4,658,717 697,787 2,165,165 (1,795,765)
Interest on Long-Term Debt 1,492,604 (1,492,604)
Total Governmental Activities $ 48,198,016 $ 3,957,412 $ 5,999,168 $ 1,703,076 (36,538,360)
General Revenues:
Taxes:
Property Tax,Levied for General Purpose 7,287,282
Property Tax,Redevelopment Agency Tax
Increment 6,755,960
Franchise Taxes 1,207,778
Sales Tax 2,577,105
Sales Tax In-Lieu 940,791
Motor Vehicle In-Lieu,unrestricted 170,592
Investment Income 856,413
Other 212,487
Total General Revenues 20,008,408
Change in Net Assets (16,529,952)
Net Assets-Beginning of Year 248,428,562
Net Assets-End of Year $ 231,898,610
The accompanying notes are an integral part of this statement.
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247
City of Moorpark
Balance Sheet
Governmental Funds
June 30,2011
Special Revenue
Street and Assessment
General Traffic Safety District Endowment
ASSETS
Cash and Investments $ 2,098,674 $ 19,357,228 $6,611,481 $ 1,437,714
Restricted Cash and Investments
Receivables:
Taxes 882,172 19,096
Accounts 130,871 64,469
Interest 214,085
Notes and Loans 900,000 6,500
Due From Other Funds 856,572
Advances to Other Funds 186,730 1,886,590
Prepaid Items 34,246 8,231
Property Held for Resale/Development
Total Assets $ 5,303,350 $ 19,357,228 $6,703,277 $ 3,330,804
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable and Accrued Liabilities $ 1,212,119 $ 23,085 $ 324,875 $ 52,089
Due to Other Funds
Advances from Other Funds
Deferred Revenue 941,347 25,169 6,500
Total Liabilities 2,153,466 23,085 350,044 58,589
Fund Balances:
Nonspendable 220,976 8,231 1,886,590
Restricted 149,884 19,334,143 6,345,002 1,385,625
Committed
Assigned
Unassigned 2,779,024
Total Fund Balances 3,149,884 19,334,143 6,353,233 3,272,215
Total Liabilities and
Fund Balances $ 5,303,350 $ 19,357,228 $6,703,277 $ 3,330,804
The accompanying notes are an integral part of this statement.
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248
Special Revenue Capital Projects
Moorpark
Parks/Public MRA Police Highlands Redevelopment Special
Facilities Operating Facilities Fee Improvement Agency Projects
$ 1,934,185 $ 3,501,402 $ $ $ 8,197,308 $ 23,745,345
5,772
12,578
7,676 12,523
1,000,000
6,856,424 5,637,139
$ 1,934,185 $ 10,378,080 $ - $ 5,772 $ 13,846,970 $ 24,745,345
$ 2,280 $ 3,298,817 $ $ $ 514,562 $ 1,935
73,969 75,775
1,186,730 1,886,590
1,189,010 3,372,786 1,886,590 - 590,337 1,935
6,856,424 5,111,349 1,000,000
745,175 7,651,516
148,870 5,772 493,768 23,743,410
(1,886,590)
745,175 7,005,294 (1,886,590) 5,772 13,256,633 24,743,410
$ 1,934,185 $ 10,378,080 $ - $ 5,772 $ 13,846,970 $ 24,745,345
The accompanying notes are an integral part of this statement.
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249
City of Moorpark
Balance Sheet
Governmental Funds - Continued
June 30,2011
Debt Service
Non-Major Total
Redevelopment Governmental Governmental
Agency Funds Funds
ASSETS
Cash and Investments $ 325,486 $ 26,219,951 $ 93,428,774
Restricted Cash and Investments 1,884,771 1,890,543
Receivables:
Taxes 901,268
Accounts 463,471 671,389
Interest 178,914 413,198
Notes and Loans 1,253,743 2,160,243
Due From Other Funds 177,006 1,033,578
Advances to Other Funds 3,073,320
Prepaid Items 42,477
Property Held for Resale/Development 8,302,304 20,795,867
Total Assets $ 2,210,257 $ 36,595,389 $ 124,410,657
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable and Accrued Liabilities $ $ 371,794 $ 5,801,556
Due to Other Funds 883,834 1,033,578
Advances from Other Funds 3,073,320
Deferred Revenue 1,581,356 2,554,372
Total Liabilities - 2,836,984 12,462,826
Fund Balances:
Nonspendable 15,083,570
Restricted 1,884,771 29,069,435 66,565,551
Committed 795,208 795,208
Assigned 325,486 4,131,832 28,849,138
Unassigned (238,070) 654,364
Total Fund Balances 2,210,257 33,758,405 111,947,831
Total Liabilities and
Fund Balances $ 2,210,257 $ 36,595,389 $ 124,410,657
The accompanying notes are an integral part of this statement.
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250
City of Moorpark
Reconciliation of the Governmental Funds - Balance Sheet
to the Statement of Net Assets
June 30, 2011
Fund balances of governmental funds $ 111,947,831
Amounts reported for governmental activities in the statement of net assets
are different because:
Capital assets of governmental activities are not financial resources and, therefore,
are not reported in the governmenal funds. 145,841,042
Long-term notes and loans receivable are not current financial resources and,
therefore, are deferred in the governmental funds. 2,160,243
Revenues not received soon enough after year-end to be considered available are
deferred in the funds. The availability criteria does not apply to the government-
wide financial statements. 394,129
Interest expenditures are recognized when due, and therefore, interest payable is
not recorded in the governmental funds. (334,413)
Long-term liabilities are not due and payable in the current period and are not
reported in the funds.
Compensated Absences (661,562)
Tax Allocation Bonds (28,155,000)
Unamortized Discount 276,590
Pension Related Debt -
Issuance costs net of accumulated amortization were recorded as expenditures
in the governmental funds. 429,750
Net assets of governmental activities $ 231,898,610
The accompanying notes are an integral part of this statement.
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251
City of Moorpark
Statement of Revenues,Expenditures,and Changes in Fund Balances
Governmental Funds
Year Ended June 30,2011
Special Revenue
Street and Assessment
General Traffic Safety District Endowment
REVENUES
Taxes $ 11,217,370 $ $ $
Licenses and Permits 587,186
Fines and Forfeitures 230,752
Use of Money and Property 508,735 254,718 90,631 97,333
Charges for Services 1,694,580 266,203 12,759 63,861
Intergovernmental 237,209
Maintenance Assessments 2,067,059
Other Revenue 192,084 5,693 25,051
Total Revenues 14,667,916 526,614 2,195,500 161,194
EXPENDITURES
Current:
General Government 2,289,299
Public Safety 6,239,338 388,818
Public Services 2,523,334 245,750
Parks and Recreation 1,062,128 3,007,462
Capital Outlay 259,158 889,299 145,262 2,050,891
Debt Service:
Principal 1,319,064
Interest
Total Expenditures 13,692,321 1,135,049 3,541,542 2,050,891
Excess(Deficiency)of Revenues
over Expenditures 975,595 (608,435) (1,346,042) (1,889,697)
OTHER FINANCING SOURCES(USES)
Transfer In 1,198,095 1,236,497
Transfer Out (2,073,328)
Total Other Financing
Sources(Uses) (875,233) - 1,236,497 -
Net Change in Fund Balances 100,362 (608,435) (109,545) (1,889,697)
Fund Balances, Beginning of Year 3,049,522 19,942,578 6,462,778 5,161,912
Fund Balances, End of Year $ 3,149,884 $ 19,334,143 $ 6,353,233 $ 3,272,215
The accompanying notes are an integral part of this statement.
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252
Special Revenue Capital Projects
Moorpark
Parks/Public MRA Police Highlands Redevelopment Special
Facilities Operating Facilities Fee Improvement Agency Projects
$ $ 3,651,369 $ $ $ $
4,490
26,377 107,415 419 50,219 4,900
56,185 1,156
45,933
120,433
82,562 3,883,707 45,933 419 50,219 6,056
330,760 4,902,293
4,900
486,356 13,956,383 2,568,065 194,171
100,000
822,016 5,002,293 - 13,956,383 2,568,065 194,171
(739,454) (1,118,586) 45,933 (13,955,964) (2,517,846) (188,115)
(58,507) (361,264)
(58,507) - - - (361,264)
-
(739,454) (1,177,093) 45,933 (13,955,964) (2,517,846) (549,379)
1,484,629 8,182,387 (1,932,523) 13,961,736 15,774,479 25,292,789
$ 745,175 $ 7,005,294 $ (1,886,590) $ 5,772 $ 13,256,633 $ 24,743,410
Continued
The accompanying notes are an integral part of this statement.
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253
City of Moorpark
Statement of Revenues,Expenditures,and Changes in Fund Balances
Governmental Funds- Continued
Year Ended June 30,2011
Debt Service
Non-Major Total
Redevelopment Governmental Governmental
Agency Funds Funds
REVENUES
Taxes $ 1,753,399 $ 2,420,762 $ 19,042,900
Licenses and Permits 587,186
Fines and Forfeitures 206,301 441,543
Use of Money and Property 32,668 363,840 1,537,255
Charges for Services 484,849 2,579,593
Intergovernmental 4,549,026 4,786,235
Maintenance Assessments 2,112,992
Other Revenue 489,821 833,082
Total Revenues 1,786,067 8,514,599 31,920,786
EXPENDITURES
Current:
General Government 2,289,299
Public Safety 211,199 6,839,355
Public Services 4,873,995 12,876,132
Parks and Recreation 4,074,490
Capital Outlay 3,956,939 24,506,524
Debt Service:
Principal 555,000 1,874,064
Interest 1,350,874 20,642 1,471,516
Total Expenditures 1,905,874 9,062,775 53,931,380
Excess(Deficiency)of Revenues
over Expenditures (119,807) (548,176) (22,010,594)
OTHER FINANCING SOURCES(USES)
Transfer In 151,139 1,235,007 3,820,738
Transfer Out (151,139) (2,644,238)
Total Other Financing
Sources(Uses) 151,139 1,083,868 1,176,500
Net Change in Fund Balances 31,332 535,692 (20,834,094)
Fund Balances,Beginning of Year 2,178,925 33,222,713 132,781,925
Fund Balances,End of Year $ 2,210,257 $ 33,758,405 $ 111,947,831
The accompanying notes are an integral part of this statement.
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254
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, 2011
Net change in fund balances -total governmental funds $(20,834,094)
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 ther estimated useful lives as
depreciation expense or are allocated to the appropriate functional expense when
the cost is below the capitalization threshold. This activity is reconciled as follows:
Cost of assets capitalized 9,452,285
Depreciation expense (3,518,960)
Governmental funds report only proceeds from the sale of capital assets. The
statement of activities reports a gain or loss on disposal based on the net book value
at the time of disposal. Disposal activity included the following:
Costs of assets disposed (1,227,461)
Accumulated depreciation on disposed assets 39,627
Long-term notes and loans receivable are reported as expenditures when made and as
revenue when repaid in the governmental funds. However,there is no impact in the
statement of activities when notes and loans are made or repaid. This amount
represents the net change in the long-term notes and loans receivable. (1,429,157)
Revenues not received soon enough after year-end to be considered available are
deferred in the funds. The availability criteria does not apply to the government-wide
financial statements. (876,745)
The issuance of long-term debt provides current financial resources to governmental
funds,while the repayment of the principal of long-term debt consumes the current
financial resources of governmental funds. Neither transaction,however, has any
effect on net assets. Also governmental funds report the effect of issuance costs,
premiums, discounts, and similar items when debt is first issued, whereas these
amounts are deferred and amortized in the statement of activities. This amount is the
net effect of these differences in the treatment of long-term debt and related items. 1,846,364
Accrued interest for tax allocation bonds is not recorded in the governmental funds.
This is the net change in accrued interest for the current period. 6,612
Compensated absence 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. 11,577
Change in net assets of governmental activities $(16,529,952)
The accompanying notes are an integral part of this statement.
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City of Moorpark
Statement of Fiduciary Assets and Liabilities
Agency Funds
June 30, 2011
ASSETS
Cash and Investments $ 3,684,080
Restricted Cash and Investments 6,803,880
Accounts Receivable 116,391
Total Assets $ 10,604,351
LIABILITIES
Accounts Payable $ 157,677
Deposits 3,528,136
Due to Bondholders 6,918,538
Total Liabilities $ 10,604,351
The accompanying notes are an integral part of this statement.
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256
City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
NOTE DESCRIPTION PAGE
1 Summary of Significant Accounting Policies 33 -42
2 Cash and Investments 43 -48
3 Notes and Loans Receivable 49 - 51
4 Interfund Transactions 52 - 53
5 Capital Assets and Depreciation 54- 55
6 Long-Term Liabilities 55 - 59
7 Agreements with Various Taxing Agencies 59 -61
8 Retirement Plan 61 -62
9 Conduit Debt-Revenue Bonds 62
10 Special Assessment Bonds 63
11 Risk Management 64 - 66
12 Classification of Net Assets and Fund Balance 66 - 70
13 Commitments and Contingencies 71 - 73
14 Restatement of Fund Balances 74
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257
City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Moorpark (City) conform to accounting principles generally
accepted in the United States of America as applicable to governments. The Governmental
Accounting Standards Board (GASB) is the accepted standard setting body for governmental
accounting and financial reporting principles. The following is a summary of the significant policies.
A) Reporting Entity
The reporting entity "City of Moorpark" includes the accounts of the City, the Moorpark
Redevelopment Agency (Agency), 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 Agency was formed in 1987 pursuant to the State of California Health and Safety Code,
Section 33000 entitled "Community Redevelopment Law". Its purpose is to finance long-term
capital improvements designed to eliminate physical and economic blight in a project area.
The PFA was formed in 1993 as a joint powers authority between the City and the 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 criteria used in determining the scope of the reporting entity are based on the provisions of
GASB Statement No. 14 (as amended by GASB Statement No. 39). 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.
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258
City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued
A) Reporting Entity-Continued
The City has accounted for the Agency, 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. Accordingly, the balances and transactions of the Agency are reported as
separate funds in the Special Revenue, Debt Service, and Capital Projects Funds. The PFA and
IDA are inactive.
The following specific criteria were used in determining that the Agency,the PFA, and the IDA are
"blended"component unit:
1) The members of the City Council also act as the governing body of the Agency, the PFA, and
the IDA.
2) The City, the Agency, the PFA, and the IDA are financially interdependent. The City makes
loans to the Agency for use on redevelopment projects. Available property tax revenues of the
Agency will be used to repay the loans from the City.
3) The Agency,the PFA,and the IDA are managed by employees of the City.
The financial statements for the Agency may be obtained at the City's administrative offices. The
PFA and IDA do not issue separate financial statements.
B) Accounting and Reporting Policies
The City has conformed to the pronouncements of the GASB, which are the primary authoritative
statements of the accounting principles generally accepted in the United States of America
applicable to state and local governments. In accordance with GASB Statement No. 20, the City
applies all applicable Financial Accounting Standards Board(FASB) pronouncements issued on or
before November 30, 1989, unless any such pronouncements contradict GASB pronouncements.
C) Description of Funds
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-
balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures.
The following are types of funds used:
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued
C) Description of Funds-Continued
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.
Debt Service Funds - Used to account for and report financial resources that are restricted,
committed,or assigned to expenditure for principal and interest.
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 Type
Agency Funds - Used to account for assets held by the City as an agent for individuals, private
organizations,other governments and/or other funds.
D) Basis of Accounting and Measurement Focus
Government-Wide Financial Statements
The City's Government-Wide Financial Statements include a Statement of Net Assets and a
Statement of Activities. These statements present summaries of Governmental Activities for the
City.
These statements are presented on an "economic resources" measurement focus and the accrual
basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets and
infrastructure as well as long-term debt, are included in the accompanying Statement of Net Assets.
The Statement of Activities presents changes in net assets. Under the accrual basis of accounting,
revenues are recognized in the period in which they are earned while expenditures are recognized
in the period in which the liability is incurred. The Statement of Activities demonstrates the degree
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City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued
D) Basis of Accounting and Measurement Focus-Continued
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 grants and contributions. 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 GASB Statement No. 34 in regard to
interfund activities, payables, and receivables. All internal balances in the government-wide
financial statements have been eliminated.
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 assets presented in the Government-
Wide Financial Statements. The City has presented all major funds that met qualifications of
GASB Statement No. 34. In addition,the City has included funds that are significant to the City as
major funds.
All governmental funds are accounted for on a spending or "current financial resources"
measurement focus and the modified accrual basis of accounting. Accordingly, only current assets
and current liabilities are included on the Balance Sheets. The Statement of Revenues,
Expenditures, and Changes in Fund Balances presents increases (revenues and other financing
sources) and decreases (expenditures and other financing uses) in fund balances. Revenues are
recognized in the accounting period in which they become susceptible to accrual,that is,when 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.
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261
City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued
D) Basis of Accounting and Measurement Focus-Continued
Accrued revenues included property taxes received within 60 days after year-end, taxpayer
assessed taxes such as sales taxes, and earnings on investments. Grant funds earned but not
received are recorded as a receivable, and grant funds received before the revenue recognition
criteria have been met are reported as deferred revenues. Expenditures are recorded when the fund
liability is incurred, if measurable, except for unmatured interest on general long-term debt, which
is recognized when due.
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 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 Endowment Special Revenue Fund is used to account for funds received by the City for certain
development 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 Parks/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
developer fees.
The MRA Operating Special Revenue Fund is used to account for monies received and expended
within the project area in accordance with the Redevelopment Plan of the Agency made pursuant to
redevelopment laws of the State of California. Sources of revenue are the tax increment collected
by the Ventura County Tax Collector, property rents and High Street Theatre ticket sales.
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262
City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued
D) Basis of Accounting and Measurement Focus-Continued
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 Moorpark Highlands Improvement Capital Projects Fund is used to account for the receipt and
expenditure of the Community Facilities District (CFD) No. 2004-1 special tax bonds proceeds.
The source of funds was the initial bond proceeds.
The Redevelopment Agency Capital Projects Fund is used to account for the funds used for the
Agency's capital improvement projects. The sources of funds are the revenue bond proceeds from
the 2001 and 2006 tax allocation bonds.
The Special 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 excess funds over$3,000,000,per City policy.
The Redevelopment Agency Debt Service Fund is used to account for the accumulation of
resources for, and the payment of principal and interest on the Agency's debt and other long-term
obligations. Sources of revenue are property tax increment collected by Ventura County.
Fiduciary Fund Financial Statements
Fiduciary Fund Financial Statements include a Statement of Net Assets. The fiduciary fund is 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 City's only fiduciary fund is an agency fund, which uses the accrual basis of accounting to
account for developer deposits and assets held for property owners of various assessment and
community facilities districts. The agency fund is custodial in nature (assets equal liabilities) and
therefore does not involve measurement of results of operations.
E) Investments
The City has adopted the provisions of GASB Statement No. 31, Accounting and Financial
Reporting for Certain Investments and External Pools, which requires governmental entities to
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City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued
E) Investments-Continued
report certain investments at fair value in the balance sheet and recognize the corresponding change
in the fair value of investments in the year in which the change occurred. In accordance with
GASB Statement No. 31,the City has adjusted certain investments to fair value(when 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 MRA Operating Special Revenue Fund, Low and Moderate Income
Housing Special Revenue Fund and the Redevelopment Agency Capital Projects Fund represents
land and buildings purchased by the Agency. Such property is valued at the lower of cost or
estimated net realizable value (as determined by a disposition and development agreement between
the Agency and a developer) and has been offset by nonspendable or restricted fund balance to
indicate that assets constitute future capital projects and are restricted or not available spendable
resources. The balance at June 30,2011 was $20,795,867.
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:
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- Continued
G) Capital Assets-Continued
Building and Improvements 25 to 50 years
Vehicles, Computers, and equipment 3 to 20 years
Infrastructure Assets
Roadway Network 7 to 100 years
Drain Network 20 to 100 years
Parks and Recreation Network 50 years
H) Deferred Revenue
Deferred revenue is recorded for monies collected in advance that have not been earned. In the
fund financial statements revenue is also deferred when the availability criteria has not been met.
As of June 30,2011, unavailable revenue amounted to $2,554,372.
I) Long-Term Debt
In the government-wide financial statements, long-term debt and other obligations are reported as
liabilities in the statement of net assets. Bonds payable are reported net of the applicable bond
premium or discount. Bond issuance costs are reported as deferred charges and amortized over the
term of the related debt. In the fund financial statements, governmental fund types recognize bond
premiums and discounts, as well as bond issuance costs, during the current period. The face
amounts of debt issuances are reported as other financing sources. Issuance costs, whether or not
withheld from the actual net proceeds received,are reported as debt service expenditures.
J) Employee Compensated Absences
City employees may receive from 20 to 30 days vacation time or annual leave each year,depending
upon length of service. An employee may accumulate earned vacation time up to a maximum of
760 hours or annual leave up to a maximum of 784 hours and administrative leave up to a
maximum of 120 hours, depending on position. The amount of maximum hours for the leave
accrual is based on the employee classification: regular employee, management, department
head or City Manager. Upon termination, employees are paid the full value of their unused annual
leave, administrative leave, vacation time, and a portion of sick leave per management benefits and
City's MOU. There is no fixed payment schedule for employee compensated absences.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued
K) Property Taxes
The duties of assessing and collecting property taxes are performed by the Ventura County
(County) Assessor and Tax Collector, respectively. The City receives an allocation of property
taxes collected by the County with respect to property located within the City limits equal to 9.1
percent of the one percent State levy. The Agency receives incremental property taxes on property
within its project area over the base-assessed valuation at the date the project area was established.
Tax levies cover the period from July 1 to June 30 of each year. All tax liens are attached annually
on the first day in January preceding the fiscal year for which the taxes are levied. Taxes are levied
on both real and personal property,as it exists on that date.
Secured property taxes are levied against real property and are due and payable in two equal
installments. The first installment is due on November 1 and becomes delinquent if not paid by
December 10. The second installment is due on February 1 and becomes delinquent if not paid by
April 10. Unsecured personal property taxes are due on July 1 each year. These taxes become
delinquent if not paid by August 31.
L) Claims and Judgments
When it is probable that a claim liability has been incurred, and the amount of the loss can be
reasonably estimated, the City records the estimated loss, net of any insurance coverage under its
self-insurance program. At June 30, 2011, 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.
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266
City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
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) Use of Restricted Resources
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first,and then unrestricted resources as they are needed.
0) Explanation of Certain Differences Between the Governmental Fund Statement of Revenues,
Expenditures and Changes in Fund Balances and the Government-wide Statement of
Activities
The reconciliation states that the issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes the current
financial resources of governmental funds. Neither transaction, however, has any affect on net
assets. Also governmental funds report the affect of issuance costs, premiums, discounts, and
similar items when debt is first issued, whereas these amounts are deferred and amortized in the
statement of activities.
The details of this$1,846,364 difference are as follows:
Amortization of Issuance Costs $ (16,853)
Amortization of Bond Discounts (10,847)
Principal Repayment 555,000
Principal Payment on Pension Related Debt 1,319,064
Net adjustment to increase net change in fund balances-
total governmental funds to arrive at changes in net assets
of governmental activities $ 1,846,364
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267
City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
2) CASH AND INVESTMENTS
Cash and investments at June 30, 2011,consisted of the following:
City Treasury Deposits
Demand Deposits $ 2,871,635
Cash on Hand 3,250
Total City Treasury Deposits 2,874,885
City Treasury Investments
Certificates of Deposit 100,000
Local Agency Investment Fund(LAIF) 15,490,405
Ventura County Pool 51,350,754
U.S. Treasury Notes 2,040,390
U.S. Agency Securities
Federal National MTG Association 10,058,280
Federal Home Loan Bank 6,020,430
Federal Farm Credit Bank 4,034,740
Federal Home Loan MTG Corporation 5,142,970
Total City Treasury Investments 94,237,969
Cash and Investments With Fiscal Agent
Money Markets $ 5,612,311
US Treasury Note 736,315
Guaranteed Investment Contracts 2,345,797
Total Cash and Investments With Fiscal Agent 8,694,423
Total Cash and Investments $ 105,807,277
Cash and Investments are reported in the basic financial statements as follows:
Statement of
Statement of Fiduciary
Net Assets Net Assets
Governmental
Activities Agency Fund Total
Cash and Investments $ 93,428,774 $ 3,684,080 $ 97,112,854
Restricted Cash and Investment 1,890,543 6,803,880 8,694,423
Total $ 95,319,317 $ 10,487,960 $105,807,277
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268
City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
2) CASH AND INVESTMENTS-Continued
The City follows the practice of pooling cash and investments of all funds, except for funds required
to be held by fiscal agents under the provisions of bond indentures. Interest income earned on
pooled cash and investments is allocated on a quarterly basis to the various funds based on average
daily cash and investment balances. Interest income from cash and investments with fiscal agents is
credited directly to the related fund.
A) Authorized Investments
Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). The table also
identifies certain provisions of the California Government Code (or the City's investment policy,
where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
This table does not address investments of debt proceeds held by bond trustees that are governed
by provisions of debt agreements of the City, rather than the general provisions of the California
Government or the City's investment policy. As of June 30, 2011, the only debt agreements of
the City pertain to the Agency.
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity Of Portfolio* In One Issuer
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year None None
Medium-Term Notes 5 years 30% None
Money Market Mutual Funds N/A 20% None
County Pooled Investment Funds N/A None None
LAIF N/A None None
*Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.
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269
City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
2) CASH AND INVESTMENTS-Continued
A) Authorized Investments-Continued
The Policy, in addition to State statutes, establishes that funds on deposit in banks must be
federally insured or collateralized and investments shall (1) have maximum maturity not to
exceed five years and (2) be laddered and based on cash flow forecasts. The City's investments
comply with the established policy.
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the City's
investment policy. The table below identifies the investment types that are authorized for
investment held by bond trustees.
The table also identifies certain provisions of these debt agreements that address interest rate
risk, credit risk, and concentration of credit risk.
Authorized Investment Type Maximum Maturity
U.S. Treasury Obligations None
U.S. Agency Securities None
Banker's Acceptances 180 days
Commercial Paper 270 days
Money Market Mutual Funds N/A
Investment Contracts 30 years
B) Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates. One of the ways that the City
manages its exposure to interest rate risk is by purchasing a combination of shorter term and
longer term investments and by timing cash flows from maturities so that a portion of the
portfolio is maturing or coming close to maturity evenly over time as necessary to provide the
cash flow and liquidity needed for operations.
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270
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
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.
Investment Maturities(in Years)
Investment Type Total Less than 1 1 to 2 2 to 3 3 to 4 >4
LAIF $ 15,490,405 $ 15,490,405 $ $ $ $
Ventura County Pool 51,350,754 51,350,754
Certificates of Deposit 100,000 100,000
U.S.Treasury Notes 2,040,390 2,040,390
U.S.Agency Securities:
Federal National MTG Assn. 10,058,280 3,020,510 3,007,410 4,030,360
Federal Home Loan Bank 6,020,430 995,300 5,025,130
Federal Farm Credit Bank 4,034,740 2,010,200 2,024,540
Federal Home Loan MTG Corp 5,142,970 3,139,870 1,004,160 998,940
Held by Bond Trustee:
Money Market Funds 5,612,311 5,612,311
U.S.Treasury Note 736,315 736,315
Guaranteed Investment
Contracts 2,345,797 2,345,797
Total $102,932,392 $73,289,785 $ - $9,165,880 $13,101,630 $7,375,097
C) Credit Risk and Concentration of Credit Risk
Deposits
At June 30, 2011, the carrying amount of the City's deposits was $2,871,635. Bank balances
before reconciling items were $3,322,242 at June 30, 2011, of which $3,322,242 were
collateralized with securities held by the pledging financial institution's trust department but not
in the City's name.
The California Government Code requires California banks and savings and loan associations to
secure the City's cash deposits by pledging securities as collateral. This Code states that
collateral pledged in this manner shall have the effect of perfecting a security interest in such
collateral superior to those of a general creditor.
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271
City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
2) CASH AND INVESTMENTS-Continued
C) Credit Risk and Concentration of Credit Risk
According to California law, the market value of pledged securities with banking institutions
must equal at least 110% of the City'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
City's total cash deposits. The City may waive collateral requirements for cash deposits, which
are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City,
however, does not normally waive the collateralization requirements.
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
Percentage of
Investment Type Carrying Value Credit Rating Investments
LAIF $ 15,490,405 Not Rated 15.05%
Ventura County Pool 51,350,754 Not Rated 49.89%
Certificates of Deposit 100,000 Not Rated .10%
U.S. Treasury Notes 2,040,390 AAA 1.98%
U.S. Agency Securities:
Federal National MTG Association 10,058,280 AAA 9.77%
Federal Home Loan Bank 6,020,430 AAA 5.85%
Federal Farm Credit Bank 4,034,740 AAA 3.92%
Federal Home Loan MTG Corporation 5,142,970 AAA 5.00%
Held by Bond Trustee:
Money Market Funds 5,612,311 AAA 5.45%
U.S. Treasury Note 736,315 AAA .71%
Guaranteed Investment Contracts 2,345,797 Not Rated 2.28%
Total $ 102,932,392 100.00%
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272
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
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, 2011, accounts were maintained in the name
of the City for $3,000,000 and the Agency for $12,490,405. At June 30, 2011, the fair value of
the State of California Pooled Money Investment Account (PMIA) including accrued interest
was $66,515,727,874. 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.
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$51,350,754 at fiscal year end.
The Ventura County Treasurer's Investment Pool is a governmental investment pool managed
and directed by the elected Ventura County Treasurer. The County Pool is not registered with
the Securities and Exchange Commission. An oversight committee comprised of local
government officials and various participants provide oversight to the management of the fund.
The daily operations and responsibilities of the Pool fall under the auspices of the County
Treasurer's office. The City is a voluntary participant in the investment pool.
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273
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
3) NOTES AND LOANS RECEIVABLE
Notes and loans receivable activity for the year ended June 30,2011, is as follows:
Beginning Ending
Balance Increases Decreases Balance
Notes Receivable:
Asadurian $ 800,000 $ $ (800,000) $ -
Mission Bell 1,704,786 (804,786) 900,000
Deferred Property Assessments 250,249 250,249
Total Notes Receivable 2,755,035 - (1,604,786) 1,150,249
Loans Receivable:
Rehabilitation 31,384 31,384
First-time Homeowners Assistance 211,556 (39,576) 171,980
CalHome 258,979 (58,849) 200,130
Area Housing Authority 332,446 600,000 (332,446) 600,000
Mountains Recreation& Conservation
Authority 6,500 6,500
Total Loans Receivable 834,365 606,500 (430,871) 1,006,994
Total Notes and Loans Receivable $ 3,589,400 $ 606,500 $ (2,035,657) $ 2,160,243
A) Asadurian Note
On April 7,2003,the City entered into an agreement with Asadurian Investment Corporation(AIC)
whereby in return for land disposition, the City received a $1,200,000 promissory note secured by
Deed of Trust. The note bears simple interest at the rate equal to the average monthly interest rate
announced by LAIF. The borrower shall pay the City the amount of$80,000 plus interest over
fifteen years. Payments are due annually in April. AIC did not pay the April 2010 payment. A
bank holds a first trust deed note on the property which is superior to the City's note. The bank is
seeking to foreclose on the property due to lack of payment by AIC. AIC had filed for bankruptcy
but that case was dismissed. The bank holding the first trust deed foreclosed on the property in
March 2011. The City's note was subordinate to the Bank note and consequently the City did not
receive any form of compensation from the foreclosure. The note balance of$800,000 has been
totally written off.
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274
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
3) NOTES AND LOANS RECEIVABLE - Continued
B) Mission Bell Note
On August 2, 1995, the Agency entered into an agreement with Mission Bell Partners whereby in
return for land disposition, the Agency received seven promissory notes totaling $3,934,500. The
notes bear simple interest from a rate of 3%to a rate of 6%per annum from August 29, 1995 until
August 29, 2029. Prior to 2004 one note was paid off. In June 2004 the Agency, per settlement
agreement discharged three of the remaining six of the original seven promissory notes totaling
$500,000. In September of 2006,notes number 2 and 6 were paid off.
In early 2011, a notice of default was issued by the senior lender for the property. There was a
possibility that the $1,704,786 note could be foreclosed out. Therefore, on March 16, 2011, the
Agency assigned note no. 7 to the City in partial satisfaction of the $5 million annual operating
loan between the City and the Agency. If and to the extent that any moneys are recovered from
the Mission Bell note, those moneys will be credited toward the outstanding balance owed
pursuant to the City/Agency loan agreement.
Subsequent to June 30, 2011, the City and Mission Bell Partners entered into a settlement
agreement whereby Mission Bell Partners would give $900,000 to the City in exchange for the
total discharge of note no. 7. This agreement was consummated in October 2011. As a result the
loan was partially written off to reflect the $900,000 settlement amount at June 30, 2011.
C) 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, 2011, the principal balance outstanding was
$250,249.
D) Rehabilitation Loans
The Agency operates a rehabilitation loan program for the renovation of low and moderate income
housing. The total balance outstanding at June 30, 2011,was $31,384.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
3) NOTES AND LOANS RECEIVABLE -Continued
E) First-Time Homeowner Assistance
The City provides down payment assistance loans to first-time homeowners. The total balance
outstanding at June 30, 2011 was $171,980. 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.
F) CalHome Mobilehome Rehabilitation Loans
The total balance of CalHome loans for repairs to mobilehomes in Villa del Arroyo at June 30,
2011 was $200,130. 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 $161,833 has been received and $112,474 has been forgiven. Funds
received are deposited into a City Trust Fund to be used for eligible home ownership-related
activities.
G) Area Housing Authority(AHA)
The Agency has entered into an agreement to loan the County of Ventura AHA up to $600,000 to
assist in developing low income residential rental units. As of June 30, 2011, the AHA has drawn
down the entire $600,000 on the available loan. The term of the loan is 30 years with a fixed
interest rate of 2.5%. Payments are to be made annually by June 30 each year.
H) 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 are to be repaid without interest
to the City by June 30, 2012, 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 30,2011 was$6,500.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
4) INTERFUND TRANSACTIONS
Due to/Due From
Due to/due from other funds for the year ending June 30, 2011, consisted of the following:
DUE TO
General Non-Major
Fund Funds Total
RDA Capital Projects Fund $ 75,775 $ $ 75,775
DUE MRA Operating Fund 73,969 73,969
FROM Non-Major Funds 706,828 177,006 883,834
Total $ 856,572 $ 177,006 $ 1,033,578
The General Fund has advanced to the Agency and the State and Federal Assistance Funds $856,572 to
cover current expenditures. Balances between Non-Major Funds were to cover deficits at year end.
Repayments are expected during fiscal year 2011/12.
Advances to/from Other Funds
The Special Projects Fund has advanced to the Parks/Public Facilities Fund $1,000,000 to construct a
new Skate Park and improvement of the Poindexter Park. The General Fund has advanced the
Parks/Public Facilities Fund $186,730 to fund certain improvements. These advances are expected to
be repaid with future development fees.
The Endowment Fund has advanced to the Police Facilities Fee Fund $1,886,590 to fund capital
improvements. The advance is expected to be repaid with future development fees.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
4) INTERFUND TRANSACTIONS - Continued
Transfers
Interfund transfers for the year ended June 30,2011 consisted of the following:
TRANSFER FROM
Special
General MRA Projects Non-Major
Fund Operating Special Funds Total
General Fund $ $ $ 361,264 $ $ 361,264
TRANSFER RDA Debt Service Fund 151,139 151,139
TO Community Development
Fund 836,831 836,831
Assessment District Fund 1,236,497 1,236,497
Non-Major Funds 58,507 58,507
Total $ 2,073,328 $ 58,507 $ 361,264 $ 151,139 $ 2,644,238
Transfers are used to (1)move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them and (2) use unrestricted revenues collected in
the General Fund to finance various programs accounted for in other funds in accordance with
budgetary authorizations or grant matching requirements.
The Low and Moderate Income Housing Special Revenue Fund transferred funds to the
Redevelopment Agency Debt Service Fund to pay the 20% debt service on the 1999 Tax Allocation
Refunding Bonds.
The Special Projects Fund transferred $361,264 to the General Fund to bring the fund balance to the
minimum$3,000,000 requirement.
The General Fund transferred funds to the Community Development and Assessment District Funds to
partially finance these operations.
The MRA Operating Fund transferred funds to the Capital Projects Fund to satisfy agreement between
the Agency and the Ventura County Community College District as further described in note 7.
Included in transfers in is $1,176,500 of land that was transferred from the City to the Agency for
housing development. The Agency subsequently gave the said property to a developer to build low
income housing.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
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 Assets. The City elected to use the basic
approach as defined by GASB Statement No. 34 for all infrastructure reporting, whereby depreciation
expense and accumulated depreciation have been recorded.
The following table presents the capital assets activity for the year ended June 30,2011.
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital Assets,Not Depreciated:
Land $ 36,414,011 $ 3,619,532 $ (1,176,500) $ 38,857,043
Construction in Progress 9,481,646 3,682,520 (762,354) 12,401,812
Total Capital Assets Not
Depreciated 45,895,657 7,302,052 (1,938,854) 51,258,855
Capital Assets Being Depreciated:
Buildings and Improvements 35,703,278 680,888 36,384,166
Machinery and Equipment 4,563,085 1,629,704 (40,906) 6,151,883
Infrastructure
Roadway System 93,681,536 601,995 (10,055) 94,273,476
Storm Drainage System 2,933,748 2,933,748
Parks System 251,434 251,434
Total Capital Assets Being
Depreciated 137,133,081 2,912,587 (50,961) 139,994,707
Less Accumulated Depreciation:
Buildings and Improvements (6,071,136) (1,064,270) (7,135,406)
Machinery and Equipment (2,874,482) (429,373) 39,627 (3,264,228)
Infrastructure
Roadway System (32,722,409) (1,990,951) (34,713,360)
Storm Drainage System (207,462) (29,337) (236,799)
Parks System (57,698) (5,029) (62,727)
Total Accumulated Depreciation (41,933,187) (3,518,960) 39,627 (45,412,520)
Total Capital Assets Being
Depreciated,Net 95,199,894 (606,373) (11,334) 94,582,187
Government Activities Capital Assets,
Net of Depreciation $ 141,095,551 $ 6,695,679 $ (1,950,188) $ 145,841,042
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City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
5) CAPITAL ASSETS AND DEPRECIATION- Continued
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General Government $ 104,764
Public Safety 235,033
Public Services 2,643,820
Parks and Recreation 535,343
Total Depreciation Expense $ 3,518,960
6) LONG-TERM LIABILITIES
Long-term liability activities for the year ended June 30,2011, are as follows:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
1999 Tax Allocation Bonds $ 5,495,000 $ $ (500,000) $ 4,995,000 $ 525,000
2001 Tax Allocation Bonds 11,520,000 (15,000) 11,505,000 15,000
2006 Tax Allocation Bonds 11,695,000 (40,000) 11,655,000 40,000
Discount on Bonds (287,437) 10,847 (276,590) (10,847)
Pension Related Debt 1,319,064 (1,319,064) -
Employee Compensated
Absences 673,139 323,455 (335,032) 661,562 330,781
Total $30,414,766 $ 323,455 $(2,198,249) $28,539,972 $ 899,934
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.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
6) LONG-TERM LIABILITIES - Continued
A) 1999 Tax Allocation Bonds-Continued
The 1999 Bonds bear interest at rates ranging from 3.05 percent to 4.875 percent per annum,
payable semi-annually on April 1 and October 1 of each year, commencing on October 1, 1999,
and are subject to mandatory sinking fund redemption commencing on October 1, 2009, and on
each October 1 thereafter. The Bonds are payable from and secured by the tax revenues to be
derived from the project area.
The 1999 Bonds are secured by all property tax increment revenue, which is deposited in the
Redevelopment Agency Debt Service Fund. Cash and investments in the custody of the fiscal
agent are restricted by the bond resolutions for payment of principal and interest on the Tax
Allocation Bonds. In addition, the bond resolutions require retention of funds held by the fiscal
agent prior to use for other than debt service.
The Agency is in compliance with the covenants contained in debt indenture, which require the
establishment of certain specific accounts for the 1999 Bonds.
Debt service payments on the 1999 Bonds payable will be made from the Redevelopment Agency
Debt Service Fund. Annual debt service requirements to maturity are as follows:
Year Ending Tax Allocation Bonds
June 30, Principal Interest Total
2012 $ 525,000 $ 230,709 $ 755,709
2013 550,000 204,506 754,506
2014 580,000 176,962 756,962
2015 605,000 148,078 753,078
2016 635,000 117,853 752,853
2017 665,000 86,166 751,166
2018 700,000 52,893 752,893
2019 735,000 17,915 752,915
Total $ 4,995,000 $ 1,035,082 $ 6,030,082
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City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
6) LONG-TERM LIABILITIES- Continued
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 will be 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 are secured by all property tax increment revenue, which are deposited in the
Redevelopment Agency Debt Service Fund. Cash and investments in the custody of the fiscal
agent are restricted by the bond resolutions for payment of principal and interest on the 2001
Bonds. In addition, the bond resolutions require retention of funds held by the fiscal agent prior to
use for other than debt service.
The Agency is in compliance with the covenants contained in debt indentures, which require the
establishment of certain specific accounts for the 2001 Bonds.
Debt service payments on the 2001 Bonds payable will be made from the Redevelopment Agency
Debt Service Fund.
Annual debt service requirements to maturity are as follows:
Year Ending Tax Allocation Bonds
June 30, Principal Interest Total
2012 $ 15,000 $ 587,098 $ 602,098
2013 20,000 586,319 606,319
2014 15,000 585,525 600,525
2015 20,000 584,711 604,711
2016 20,000 583,759 603,759
2017-2021 1,370,000 2,841,265 4,211,265
2022-2026 3,895,000 2,094,716 5,989,716
2027-2031 4,995,000 961,579 5,956,579
2032 1,155,000 29,597 1,184,597
Total $ 11,505,000 $ 8,854,569 $ 20,359,569
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
6) LONG-TERM LIABILITIES - Continued
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. 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 is recorded in the
Redevelopment Agency Debt Service Fund. Cash and investments in the custody of the fiscal
agent are restricted by the bond resolutions for payment of principal and interest on the 2006
Bonds.
The Agency is in compliance with the covenants contained in the debt indenture, which require
the establishment of certain specific accounts for the 2006 Bonds.
Debt service payments on the 2006 Bonds payable will be made from the Redevelopment Agency
Debt Service Fund. Annual debt service requirements to maturity are as follows:
Year Ending Tax Allocation Bonds
June 30, Principal Interest Total
2012 $ 40,000 $ 505,987 $ 545,987
2013 35,000 504,627 539,627
2014 40,000 503,269 543,269
2015 40,000 501,819 541,819
2016 45,000 500,277 545,277
2017-2021 245,000 2,474,572 2,719,572
2022-2026 305,000 2,418,644 2,723,644
2027-2031 375,000 2,345,941 2,720,941
2032-3036 5,670,000 1,810,594 7,480,594
2037-2039 4,860,000 325,063 5,185,063
Total $ 11,655,000 $ 11,890,793 $ 23,545,793
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
6) LONG-TERM LIABILITIES - Continued
D) Pension-Related Debt
As of June 30, 2003, California Public Employees Retirement System(Ca1PERS) implemented risk
pooling for the City's multiple-employer public employee defined benefit pension plan. At that
point, in accordance with generally accepted accounting principles, the City's Miscellaneous Plan
was converted from an"agent" multiple-employer plan to a"cost-sharing"multiple-employer plan.
Although a portion of the City's annual required contributions are actuarially determined and
shared by all employers of the risk pool, the City is also required to make annual payments on a
"Side Fund" which was created when the City entered the risk pool. The responsibility for funding
the Side Fund is specific to the City and is not shared by all employers in the plan. Therefore, the
Side Fund falls under the definition of pension-related debt, as described in GASB Statement.No.
27. The annual payments on the Side Fund represent principal and interest payments on the
pension-related debt. Principal and interest are included in the retirement expenditures in the
various functions. The City paid off the entire remaining balance of the Side Fund during 2010/11,
which is reported as a debt service expenditure.
E) Employee Compensated Absences
The long-term liability at June 30, 2011 is $661,562 for employee compensated absences. The
General Fund is primarily expected to liquidate this liability.
7) AGREEMENTS WITH VARIOUS TAXING AGENCIES
The Agency has entered into four (4) agreements for allocation and distribution of tax increment
revenues:
The first agreement is with the County of Ventura, Ventura County Library District, Ventura County
Fire Protection District, and Ventura County Flood Control District (collectively, the "County Taxing
Entities"), which provides for the Agency to retain 100 percent of the County Taxing Entities share
(55.82 percent) of annual tax increment revenues up to $1,750,000. For annual tax increment revenue
in excess of$1,750,000, the Agency shall distribute 55.82 percent of such revenues to the County on
behalf of the County Taxing Entities. The County Taxing Entities have agreed to defer payments in
the initial years of the Redevelopment Plan, and consequently,the parties agree that the County Taxing
Entities may receive payments in any single fiscal year in excess of the amount of tax revenues the
County Taxing Entities would otherwise be entitled to, but for the adoption of the Redevelopment Plan.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
7) AGREEMENTS WITH VARIOUS TAXING AGENCIES - Continued
With respect to the first paragraph, 4.2 percent of the County Taxing Entities share is allocated to the
County Library District(County Free Library System). The City has withdrawn from the County Free
Library System and now operates the Moorpark Library. Pursuant to the Memorandum of
Understanding governing the County Free Library System, upon withdrawal, a city is entitled to all
property taxes allocated to library purposes from within the corporate boundaries of such city. The
County has agreed that the City is entitled to the share of annual tax increment previously allocated to
the County Library District under the first agreement.
The second agreement is with the Moorpark Unified School District (MUSD), and states that the
MUSD shall receive, after the Agency has satisfied debt service payments to bond or note holders or to
the holder of any other instruments of Agency indebtedness (provided such indebtedness is not
reasonably foreseeable to impair the Agency's obligation under the agreement), the MUSD's share
(33.41 percent) of tax increment revenues generated by an annual 2 percent increase in assessed
valuation, and beginning in fiscal year 1995/96, 14 percent of the MUSD's share of annual tax
increment revenue.
Per the agreement between the MUSD and the Agency, the distributions to the MUSD shall be
expended for the following purposes at school sites in the incorporated boundaries of the City:
1. Telephone systems for new buildings
2. Computer hardware and educational systems
3. Land acquisition
4. Books
5. School buildings and facilities and related capital improvements and modernization projects
(collectively public works); such public works may include design, inspection and
administration costs, but not MUSD overhead or salary/benefits for regular MUSD
employees.
The Agency may pre-approve other expenditures that are submitted in writing by the MUSD.
The third agreement is with the Ventura County Community College District(VCCCD), and states that
the VCCCD should receive, after the Agency has satisfied debt service payments to bond or note
holders or to the holders of any other instruments of Agency indebtedness (provided such indebtedness
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
7) AGREEMENTS WITH VARIOUS TAXING AGENCIES - Continued
is not reasonably foreseeable to impair the Agency's obligation under the agreement), the VCCCD's
share (5.81 percent) of tax increment revenues generated by an annual 2 percent increase in assessed
valuation, and beginning in fiscal year 1993/94, 14 percent of the VCCCD's share of annual tax
increment revenue.
An agreement, dated May 1, 2008, between the City and the VCCCD redirects the VCCCD's tax
increment allocation. The Agency shall transfer to the City the VCCCD's tax increment allocations,
up to One Million Dollars ($1,000,000), beginning with fiscal year 2006/07 and for every fiscal year
thereafter through and including the 2024/25 fiscal year for the purpose of constructing certain
public improvements near Moorpark College.
The fourth agreement is with the Ventura County Superintendent of Schools Office (Superintendent),
and states that the Superintendent shall receive its share (2.49 percent) of tax increment revenues
generated by an annual 2 percent increase in assessed valuation.
8) RETIREMENT PLAN
A) Plan Description
The City contributes to Ca1PERS, a cost-sharing multiple-employer public employee defined
benefit pension plan. CaIPERS provides retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. Ca1PERS acts as a common
investment and administrative agent for participating public entities within the State of California.
Benefit provisions and all other requirements are established by state statute and city ordinance.
Copies of Ca1PERS' annual financial report may be obtained from their executive office: 400 P
Street, Sacramento, California 95814.
B) Funding Policy
Active plan members are required to contribute 7 percent of their covered salary. The City makes
the contribution required of the City employees on their behalf. The City is also required to make
an additional contribution at an actuarially determined rate. The required employer contribution
rate for the fiscal year 2010/11 was 11.040 percent. The 11.040 percent is comprised of 8.475
percent for the cost-sharing pool and 2.565 percent for the payment on the City's side fund. The
City paid off the side fund in February 2011. The contribution requirements for plan members are
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
8) RETIREMENT PLAN-Continued
B) Funding Policy-Continued
established by State statute and the employer contribution rate is established and may be amended
by CaIPERS. The following represents the required contributions for the past three fiscal years:
Fiscal Required Percent
Year Contributions Contributed
2008/09 $ 491,357 100%
2009/10 $ 566,161 100%
2010/11 $ 504,158 100%
9) CONDUIT DEBT- REVENUE BONDS
The City of Moorpark Mobile Home Park Revenue Bonds (Villa Del Arroyo) Series 2000 A and the
City of Moorpark Mobile Home Park Subordinate Revenue Bonds (Villa Del Arroyo) Series 2000 B
were issued in the amounts of$12,740,000 and $2,635,000 respectively. Both issuances were dated
May 19, 2000. The Series A bonds were issued to fund a loan to Augusta Homes, a California non-
profit public benefit corporation, to finance the acquisition of the Villa Del Arroyo Mobile Home Park.
The Series B bonds were issued for the same purpose but are subordinate to the Series A bonds. On
May 31, 2011 these taxable subordinate bonds were refunded for $13,085,000 and $375,000,
respectively. The total bonds outstanding at June 30,2011,totaled$13,460,000.
The City of Moorpark Multifamily Housing Revenue Bonds (Vintage Crest Senior Apartment Project)
2002 Series A were issued in the amount of$16,000,000. The issuance was dated December 1, 2002.
The Series A Bonds were issued to fund a loan to Vintage Crest Senior Apartment L.P., a California
Limited Partnership, to finance the Vintage Crest Senior Housing Project. The bonds outstanding at
June 30, 2011,totaled$14,543,332.
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 thereunder have been excluded from the accompanying basic financial statements.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
10)SPECIAL ASSESSMENT BONDS
A) Assessment District 92-1 (Mission Bell Plaza)
On April 1, 1994, the City sponsored the issuance of special assessment bonds to finance certain
capital improvements for the Mission Bell Plaza project. These bonds, totaling $2,595,000, of
which$735,000 and$1,475,000 mature in 2013 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 $1,400,000 at June 30,2011.
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. 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 is $5,940,000 at June 30, 2011.
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. The unpaid
principal balance is $25,480,000 at June 30, 2011.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
11)RISK MANAGEMENT
A) Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City is a member of the Authority. The Authority is composed of over 100 California public
entities and is organized under a joint powers agreement pursuant to California Government Code
6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of
self-insured losses,to purchase excess insurance or reinsurance,and to arrange for group-purchased
insurance for property and other coverages. The Authority's pool began covering claims of its
members in 1978. Each member government has an elected official as its representative on the
Board of Directors. The Board operates through a nine-member Executive Committee.
The City does not have an equity interest in the Authority: therefore, no amount has been reported
in the Statement of Net Assets. However, the City does have an ongoing financial interest because
the City is able to influence the operations of the Authority so that the Authority uses its resources
on behalf of the City. Also, an ongoing financial responsibility exists because the Authority is
dependent on continued funding from the City. The condensed financial information of the
Authority has not been reproduced in this report, but is available from the Authority.
B) Self Insurance Programs of the Authority
Beginning coverage period 2010/11, the Authority implemented a new funding and cost
allocation formula, from retrospective funding model to a prospective funding model and
increased the funding estimate goal to 75 percent confidence level. This change aims to improve
the Authority's long-term financial viability by sufficiently pre-funding each period to cover
expected claims and expenditures. Under the new formula, the General Liability and Workers'
Compensation annual contributions are separately calculated for public safety and non-public
safety categories based on the member's exposure and experience factors. Exposure factor is
determined by the annual reported payroll, with the minimum imputed payroll of$420,000 for
the liability formula. Experience factors are defined by loss layer weighting ratio equivalent to
50 percent on the agency's first layer losses ($0 to $30,000 for liability and $0 to $50,000 for
worker's compensation) and 50 percent on its second layer of losses ($30,000 to $750,000 for
liability and $50,000 to $100,000 for worker's compensation). A credibility weighting
component, ranging from 80 percent to 20 percent, is applied to determine the portion of the
member's cost attributable to its own loss experience relative to its payroll size. The annual
contribution is subject to 0 percent-35 percent volatility band, so that no member will pay more
than 35 percent or pay less than prior year amount.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
11)RISK MANAGEMENT- Continued
B) Self Insurance Programs of the Authority-Continued
General Liability: Costs of claims above $5,000,000 are currently paid by reinsurance. The
Protection for each member is $50,000,000 per occurrence and $50,000,000 annual aggregate.
Workers Compensation: Members retain the first $50,000 of each claim. Losses up to
$2,000,000 are pooled by members and excess coverage is purchased by statutory limits.
Administrative expenses are paid from the Authority's investment earnings.
During the year, the City took advantage of the Authority's incentive program by paying off the
$503,501 aggregate retrospective balance due on the liability pool and was able to receive a 6
percent or $30,210 discount. The Authority owes the City $181,621 from the Workers'
Compensation pool and the City received 25 percent or $45,405 refund as a reduction on the
2010/11 annual contribution.
C) Purchased Insurance
The City participates in the all-risk property protection program of the Authority. This insurance
protection is underwritten by several insurance companies. The City property is currently
insured according to a schedule of covered property submitted by the City to the Authority.
Total all-risk property insurance coverage is $37,087,004. There is a $5,000 per loss deductible.
Premiums for the coverage are paid annually and are not subject to retroactive adjustments.
D) Earthquake and Flood Insurance
The City purchased earthquake and flood insurance on a portion of its property. The earthquake
insurance is part of the property protection insurance program of the Authority. The City property
currently has earthquake protection in the amount of $33,254,981. There is a deductible of 5
percent of the value with a minimum deduction of$100,000. Premiums for the coverage are paid
annually and are not subject to retroactive adjustments.
E) Adequacy of Protection
During the past three fiscal (claims) years none of the above programs of protection have had
settlements or judgments that exceeded pooled or insured coverage. There have been no significant
reductions in pooled or insured liability coverage from coverage in the prior year.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
11)RISK MANAGEMENT - Continued
F) Claims and Judgments
The City accounts for uninsured, material claims and judgments and associated legal and
administrative costs when it is probable that the liability claim has been incurred and the amount
of the loss can be reasonably estimated. Included therein are claims incurred but not reported,
which consists of(a) known loss events expected to be presented as claims later, (b) unknown
loss events that are expected to become claims, and (c) expected future development on claims
already reported. This is based upon historical actual results that have established a reliable pattern
supplemented by specific information about current matters. Small dollar claims and judgments
are recorded as expenditures when paid.
12)CLASSIFICATION OF NET ASSETS AND FUND BALANCE
A) Net Assets
In the Government-wide financial statements,net assets are classified in the following categories:
Invested in Capital Assets
This category groups all assets, including infrastructure, into one component of net assets.
Accumulated depreciation on these assets reduces this category.
Restricted Net Assets
This category presents external restrictions imposed by creditors, grantors, contributors, or laws
and regulations of other governments and restrictions imposed by law through constitutional
provisions or enabling legislation.
Unrestricted Net Assets
This category represents the net assets of the City that are not externally restricted for any project
or other purpose.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
12)CLASSIFICATION OF NET ASSETS AND FUND BALANCE - Continued
B) Fund Balance
The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental
Fund Type Definitions as of June 30, 2011. Fund balances in governmental funds are reported in
classifications that comprise a hierarchy based primarily on the extent to which the City is bound
to honor constraints on the specific purposes for which amounts in those funds can be spent. The
City considers restricted fund balance to have been spent first when an expenditure is incurred
for purposes for which both restricted and unrestricted fund balance is available. Similarly,
when an expenditure is incurred for purposes for which amounts in any of the unrestricted
classifications of fund balance could be used, the City considers committed amounts to be
reduced first, followed by assigned amounts and then unassigned amounts.
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 ordinance or
resolution to formally commit part of the City's fund balances or future revenues for a specific
purpose(s) or program. To change or repeal any such commitment will require an additional
formal City Council's action utilizing the same type of action that was originally used.
Assigned Fund Balance - Amounts that are constrained by the Council's intent to use specified
financial resources for specific purposes, but are neither restricted nor committed. It is the policy of
the City Council that assignment of fund balances must be approved by the Council prior to the
fiscal year end.
Unassigned Fund Balance - These are either residual positive net resources of fund balance in
excess of what can properly be classified in one of the other four categories, or negative
balances.
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292
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
12)CLASSIFICATION OF NET ASSETS AND FUND BALANCE - Continued
B) Fund Balance-Continued
The City's governmental fund balances at June 30, 2011,are presented below:
Street and Assessment Parks/Public
General Traffic Safety District Endowment Facilities
Fund Fund Fund Fund Fund
Nonspendable:
Prepaid Items $ 34,246 $ $ 8,231 $ $
Advances 186,730 1,886,590
Property Held for Resale/Development
Restricted for:
Public Services 149,884 19,334,143 6,345,002 1,385,625
Recreation Services 745,175
Public Safety
Debt Service
Low and Moderate Housing
Construction of Human Services Center
Committed to:
Library Services
Assigned to:
Redevelopment Activities
Capital Projects
Unassigned 2,779,024
Total Fund Balance $ 3,149,884 $ 19,334,143 $ 6,353,233 $ 3,272,215 $ 745,175
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
12)CLASSIFICATION OF NET ASSETS AND FUND BALANCE - Continued
B) Fund Balance-Continued
Moorpark Redevelopment
MRA Police Highlands Agency Special
Operating Facilities Improvement Capital Projects Projects
Fund Fund Fund Fund Fund
Nonspendable:
Prepaid Items $ $ $ $ $
Advances 1,000,000
Property Held for Resale/Development 6,856,424 5,111,349
Restricted for:
Public Services
Recreation Services
Public Safety
Debt Service
Low and Moderate Housing
Construction of Human Services Center 7,651,516
Committed to:
Library Services
Assigned to:
Redevelopment Activities 148,870 493,768
Capital Projects 5,772 23,743,410
Unassigned (1,886,590)
Total Fund Balance $ 7,005,294 $ (1,886,590) $ 5,772 $ 13,256,633 $ 24,743,410
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294
City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
12)CLASSIFICATION OF NET ASSETS AND FUND BALANCE-Continued
B) Fund Balance-Continued
Redevelopment
Agency Debt Others Total
Service Governmental Governmental
Fund Funds Funds
Nonspendable:
Prepaid Items $ $ $ 42,477
Advances 3,073,320
Property Held for Resale/Development 11,967,773
Restricted for:
Public Services 18,431,379 45,646,033
Recreation Services 1,654,795 2,399,970
Public Safety 680,957 680,957
Debt Service 1,884,771 1,884,771
Low and Moderate Housing 8,302,304 8,302,304
Construction of Human Services Center 7,651,516
Committed to:
Library Services 795,208 795,208
Assigned to:
Redevelopment Activities 325,486 968,124
Capital Projects 4,131,832 27,881,014
Unassigned (238,070) 654,364
Total Fund Balance $ 2,210,257 $ 33,758,405 $ 111,947,831
Deficit Fund Balance
The following non-major governmental funds had deficits at June 30,2011:
Tierra Rejada/Spring Road Special Revenue Fund (177,006)
Prop 1B Safety and Security (5,161)
Management expects these deficits to be eliminated through future revenues.
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295
City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
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 $10,576,065.
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.
Recent Changes in Legislation Affecting California Redevelopment Agencies
On June 29, 2011, the Governor of the State of California signed Assembly Bills X1 26 and 27 as
part of the State's budget package. Assembly Bill X1 26 requires each California redevelopment
agency to suspend (effective July 1, 2011) nearly all activities except to implement existing
contracts, meet already-incurred obligations, preserve its assets and prepare for the impending
dissolution of the agency. Assembly Bill X1 27 provides a means for redevelopment agencies to
continue to exist and operate by means of a Voluntary Alternative Redevelopment Program. Under
this program, each local government would adopt an ordinance agreeing to make certain payments
to the County Auditor Controller in fiscal year 2011/12 and annual payments each fiscal year
thereafter. Assembly Bill X1 26 indicates that the city, special district or county "may use any
available funds not otherwise obligated for other uses" to make this payment. The City and the
Agency intend to use available monies of its redevelopment agency for this purpose. The amounts
to be paid after fiscal year 2012/13 have yet to be determined by the State legislature.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30,2011
13)COMMITMENTS AND CONTINGENCIES - Continued
B) Contingencies-Continued
Recent Changes in Legislation Affecting California Redevelopment Agencies-Continued
Assembly Bill X1 26 directs the State Controller of the State of California to review the
propriety of any transfers of assets between redevelopment agencies and other public bodies that
occurred after January 1, 2011. If the public 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 Assembly Bill X1 26.
In the event that Assembly Bill X1 26 is upheld,the receivable recognized by funds of the City that
had previously loaned or advanced funds to the redevelopment agency would become uncollectible
with a loss recognized to the City. Additionally, the City would be impacted by the elimination of
reimbursements previously paid to the City by the redevelopment agency for shared administrative
services.
The League of California Cities and the California Redevelopment Association (CRA) filed a
lawsuit on July 18, 2011 on behalf of cities, counties and redevelopment agencies petitioning the
California Supreme Court to overturn Assembly Bills X1 26 and 27 on the grounds that they
violate the California Constitution. On August 11, 2011, the California Supreme Court issued a
stay of all of Assembly Bill Xl 27 and most of Assembly Bill X1 26. The California Supreme
Court stated in its order that "the briefing schedule is designed to facilitate oral argument as
early as possible in 2011, and a decision before January 15, 2012." A second order issued by the
California Supreme Court on August 17, 2011 indicated that certain provisions of Assembly
Bills X1 26 and 27 were still in effect and not affected by its previous stay, including
requirements to file an appeal of the determination of the community remittance payment by
August 15, the requirement to adopt an Enforceable Obligations Payment Schedule ("EOPS") by
August 29, 2011, and the requirement to prepare a preliminary draft of the initial Recognized
Obligation Payment Schedule ("ROPS") by September 30, 2011.
Because the stay provided by Assembly Bill X1 26 only affects enforcement, each agency must
adopt an Enforceable Obligation Payment Schedule and draft Recognized Obligation Payment
Schedule prior to September 30, as required by the statute. Enforceable obligations include
bonds, loans and payments required by the federal or State government; legally enforceable
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
13)COMMITMENTS AND CONTINGENCIES - Continued
B) Contingencies- Continued
Recent Changes in Legislation Affecting California Redevelopment Agencies -Continued
payments required in connection with agency employees such as pension payments and
unemployment payments,judgments or settlements; legally binding and enforceable agreements
or contracts; and contracts or agreements necessary for the continued administration or operation
of the agency that are permitted for purposes set forth in AB X1 26.
On September 7 and 14, 2011, City of Moorpark Ordinance No. 406 and No. 407 were adopted
indicating that the City will comply with the Voluntary Alternative Redevelopment Program in
order to permit the continued existence and operation of the Agency, in the event Assembly Bills
X1 26 and/or 27 are upheld as constitutional. The initial payment by the City is estimated to be
$1,606,569 with one half due on January 15, 2012 and the other half due May 15, 2012.
Thereafter, an estimated $381,000 will be due annually. The amounts to be paid after fiscal year
2012/13 have yet to be determined by the State Legislature. The semi-annual payments will be
due on January 15 and May 15 of each year and would increase or decrease with changes in tax
increment. Additionally, an increased amount would be due to schools if any "new debt" is
incurred. Assembly Bill X1 27 allows a one-year reprieve on the agency's obligation to
contribute 20 percent of tax increment to the low-and-moderate-income housing fund so as to
permit the Agency to assemble sufficient funds to make its initial payments. Failure to make
these payments would require agencies to be terminated under the provisions of AB X1 26.
As of December 29, 2011, the Supreme Court of California upheld the provisions of Assembly
Bill X1 26 and invalidated Assembly Bill X1 27. The ruling provides for the wind-up and
dissolution of redevelopment agencies as of February 1, 2012.
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City of Moorpark
Notes to Financial Statements
Year Ended June 30, 2011
14)RESTATEMENT OF FUND BALANCES
Fund balances in the funds below were restated as a result of implementing Governmental Accounting
Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions.
The beginning fund balances of Governmental Funds were restated as follows:
Community
General Development
Fund Fund
Fund Balances,as Previously Reported $ 2,999,999 $ 49,523
Restatements:
Changes to fund balance resulting from the
Implementation of GASB 54 49,523 (49,523)
Fund Balances, as Restated $ 3,049,522 $ -
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REQUIRED SUPPLEMENTARY INFORMATION
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City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balances
Budget and Actual-General Fund
Year Ended June 30,2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
PROPERTY TAXES
Current Secured $ 3,100,000 $ 3,150,000 $ 3,150,851 $ 851
Current Unsecured 35,000 65,000 68,598 3,598
Prior Year Secured/Unsecured 5,000 5,000 2,765 (2,235)
Supplemental Secured/Unsecured 100,000 75,000 36,998 (38,002)
Real Property Transfer Tax 100,000 100,000 136,094 36,094
Homeowners Property Exemption 45,000 45,000 40,282 (4,718)
Parcel Taxes 140,000 140,000 157,082 17,082
Property Taxes VLF 2,825,000 2,900,000 2,899,027 (973)
Total Property Taxes 6,350,000 6,480,000 6,491,697 11,697
SALES TAXES
Sales and Use Tax 2,250,000 2,450,000 2,577,105 127,105
Sales Tax Compensation 850,000 940,000 940,791 791
Total Sales Taxes 3,100,000 3,390,000 3,517,896 127,896
FRANCHISE FEES
Franchise Fee-Cable TV 350,000 400,000 404,048 4,048
Franchise Fee- Edison 300,000 300,000 279,817 (20,183)
Franchise Fee-Gas 100,000 100,000 95,151 (4,849)
Franchise Fee-Oil 5,144 5,144
Franchise PEG Fees 30,000 30,000 41,883 11,883
Franchise GI Rubbish 185,000 185,000 199,654 14,654
Franchise Moorpark Rubbish 100,000 100,000 119,272 19,272
Landfill Local Impact Fee 50,000 50,000 53,167 3,167
CIWMP Fees 10,000 10,000 9,641 (359)
Total Franchise Fees 1,125,000 1,175,000 1,207,777 32,777
LICENSES AND PERMITS
Business Registration 125,000 125,000 144,845 19,845
Filming Permits 7,000 7,000 6,200 (800)
NPDES Business Inspection Fees 2,000 2,000 7,141 5,141
Misc. Business Permits 315 315
Street Vendor Permits 2,000 2,000 1,635 (365)
Home Occupation Permits 9,000 9,000 13,600 4,600
Sign Permits 5,000 5,000 6,725 1,725
Banner Permits 1,000 1,000 1,360 360
Continued
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303
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual- General Fund -Continued
Year Ended June 30,2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
LICENSES AND PERMITS
Residential Building Permits 302,000 302,000 251,171 (50,829)
Non Residential Building 64,000 64,000 95,109 31,109
Permit Adj Commercial 2,000 2,000 2,290 290
Permit Adj Residential 1,000 1,000 (1,000)
Temporary Use Permit 3,000 3,000 6,320 3,320
Enchroachment Permit 28,600 28,600 34,395 5,795
Rental Inspection Permits 5,000 5,000 480 (4,520)
Administrative Permits 7,000 7,000 15,600 8,600
Total Licenses and Permits 563,600 563,600 587,186 23,586
FINES AND FORFEITURES
Municipal Code Fines $ 179,000 $ 204,000 $ 228,931 $ 24,931
Animal Control Fines 2,000 2,000 143 (1,857)
Forfeiture& Penalties 2,000 2,000 (2,000)
Code Enforcement Fines 1,678 1,678
Total Fines&Forfeitures 183,000 208,000 230,752 22,752
USE OF MONEY AND PROPERTY
Investment Earnings 400,000 225,000 301,335 76,335
Rents and Concessions 125,000 125,000 107,400 (17,600)
Interest/City MRA Advance 175,000 100,000 100,000 -
Total Money& Property 700,000 450,000 508,735 58,735
CHARGES FOR SERVICES
Other Admin Service Fees 82,000 82,000 122,959 40,959
Administrative Fees -
Administrative Fees-CFD -
Park and Facility Use Fee 70,000 70,000 54,934 (15,066)
Contract Class Registration Fees 207,000 207,000 235,822 28,822
League Fees 120,600 120,600 124,730 4,130
Recreation Event Fees 305,000 250,000 268,612 18,612
Advertising in brochure 8,000 8,000 10,250 2,250
Other Community Services Fees 4,000 4,000 4,771 771
Photocopying 1,000 1,000 826 (174)
Sale of Documents 1,000 1,000 2,554 1,554
Special Police Dept Services 30,000 30,000 34,620 4,620
NSF Fees and Misc. Charges 1,000 1,000 1,295 295
Continued
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304
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual- General Fund - Continued
Year Ended June 30,2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
CHARGES FOR SERVICES
City Admin Engin Contract 17,200 17,200 92,345 75,145
City Admin Attny Contract 3,000 3,000 1,114 (1,886)
Contract Admin Fee 2,000 2,000 23,626 21,626
Zone Clearance 32,000 32,000 36,360 4,360
Imaging Fees 1,000 1,000 300 (700)
Advance Planning Fees 12,000 12,000 17,481 5,481
Other Comm Develop Fees 3,713 3,713
Plan Check Residential 90,000 90,000 107,473 17,473
Plan Check Non Residential 35,000 35,000 45,087 10,087
Planning Time Charges 330,000 330,000 279,221 (50,779)
Public Improv Plan Check 30,000 30,000 141,378 111,378
Public Improv Inspections 10,000 10,000 69,680 59,680
PW/ENG Staff Time Charges 8,000 8,000 12,803 4,803
Real Estate Fees 2,000 2,000 2,626 626
Total Charges for Services 1,401,800 1,346,800 1,694,580 347,780
INTERGOVERNMENTAL
Motor Vehicle In Lieu 75,000 75,000 170,592 95,592
Other State Funds 20,000 20,000 23,049 3,049
County Grants 10,000 68,431 30,215 (38,216)
Other Federal Revenue/Grants 8,000 8,000 13,353 5,353
Total Intergovernmental 113,000 171,431 237,209 65,778
OTHER REVENUES
Contributions/Donations $ 25,000 $ 25,000 $ 17,867 $ (7,133)
Revenues not elsewhere classified 15,000 15,000 1,808 (13,192)
Expense Reimbursements 75,000 75,000 57,880 (17,120)
Restitution/Insurance Proceeds 15,000 115,000 114,529 (471)
Total Other Revenues 130,000 230,000 192,084 (37,916)
Total Revenue 13,666,400 14,014,831 14,667,916 653,085
Continued
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305
City of Moorpark
Schedule of Revenues,Expenditures, and Changes in Fund Balances
Budget and Actual - General Fund- Continued
Year Ended June 30,2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
EXPENDITURES
Current:
General Government 2,020,069 2,546,850 2,289,299 257,551
Public Safety 6,329,222 6,510,041 6,239,338 270,703
Public Services 2,052,815 3,163,136 2,523,334 639,802
Parks and Recreation 1,807,229 1,349,215 1,062,128 287,087
Capital Outlay 200,404 378,060 259,158 1 18,902
Debt Service:
Principal 1,319,064 1,319,064 -
Total Expenditures 12,409,739 15,266,366 13,692,321 1,574,045
Excess(Deficiency)of Revenues
over Expenditures 1,256,661 (1,251,535) 975,595 2,227,130
OTHER FINANCING SOURCES(USES)
Transfers In 1,121,000 2,621,000 1,198,095 (1,422,905)
Transfer Out (2,355,144) (2,433,812) (2,073,328) 360,484
Total Other Financing
Sources(Uses) (1,234,144) 187,188 (875,233) (1,062,421)
Net Change in Fund Balance 22,517 (1,064,347) 100,362 1,164,709
Fund Balance,Beginning of Year 3,049,522 3,049,522 3,049,522
Fund Balance,End of Year $ 3,072,039 $ 1,985,175 $ 3,149,884 $ 1,164,709
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306
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual- Street and Traffic Safety Special Revenue Fund
Year Ended June 30, 2011
•
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
USE OF MONEY AND PROPERTY
Investment Earnings $ 203,000 $ 203,000 $ 254,718 $ 51,718
Total Use of Money and Property 203,000 203,000 254,718 51,718
CHARGES FOR SERVICES
Other Development Fees 641,000 641,000 266,203 (374,797)
Total Charges for Services 641,000 641,000 266,203 (374,797)
OTHER REVENUE
Sale of Plans/Specifications - - 5,693 5,693
Total Other Revenue - - 5,693 5,693
Total Revenues 844,000 844,000 526,614 (317,386)
EXPENDITURES
Current:
Public Services 266,561 322,561 245,750 76,811
Capital Outlay 4,857,148 5,274,380 889,299 4,385,081
Total Expenditures 5,123,709 5,596,941 1,135,049 4,461,892
Excess(Deficiency)of Revenues
over Expenditures (4,279,709) (4,752,941) (608,435) 4,144,506
OTHER FINANCING SOURCES(USES)
Transfers Out - - -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balance (4,279,709) (4,752,941) (608,435) 4,144,506
Fund Balance, Beginning of Year 19,942,578 19,942,578 19,942,578
Fund Balance, End of Year $ 15,662,869 $ 15,189,637 $ 19,334,143 $ 4,144,506
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City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual- Assessment District Special Revenue Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
USE OF MONEY AND PROPERTY
Investment Earnings $ 69,000 $ 69,000 $ 90,631 $ 21,631
Total Use of Money and Property 69,000 69,000 90,631 21,631
CHARGES FOR SERVICES
Tennis/Basketball Court Lighting Use 10,100 10,100 7,215 (2,885)
Sale Plans/Specifications 320 320
Administrative Fees 5,224 5,224
10,100 10,100 12,759 2,659
SPECIAL BENEFIT ASSESSMENTS
SBA- Street Lighting 244,300 244,300 246,661 2,361
SBA- Landscape Maintenance 1,090,300 1,090,300 1,102,498 12,198
SBA- Storm Drain Maintenenace 9,400 9,400 9,400 -
SBA - Park Maintenance 698,000 698,000 708,500 10,500
Total Special Benefit Assessments 2,042,000 2,042,000 2,067,059 25,059
OTHER REVENUES
Expense Reimbursements 25,051 25,051
Total Other Revenues - - 25,051 25,051
Total Revenues 2,121,100 2,121,100 2,195,500 74,400
EXPENDITURES
Current:
Public Safety 406,102 394,115 388,818 5,297
Parks and Recreation 3,920,601 4,085,923 3,007,462 1,078,461
Capital Outlay 454,447 833,760 145,262 688,498
Total Expenditures 4,781,150 5,313,798 3,541,542 1,772,256
Excess (Deficiency)of Revenues
over Expenditures (2,660,050) (3,192,698) (1,346,042) 1,846,656
Continued
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308
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual- Assessment District Special Revenue Fund - Continued
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
OTHER FINANCING SOURCES(USES)
Transfers In $ 1,610,288 $ 1,630,624 $ 1,236,497 $ (394,127)
Transfer Out (57,000) -
Total Other Financing
Sources(Uses) 1,553,288 1,630,624 1,236,497 (394,127)
Net Change in Fund Balance (1,106,762) (1,562,074) (109,545) 1,452,529
Fund Balance, Beginning of Year 6,462,778 6,462,778 6,462,778
Fund Balance, End of Year $ 5,356,016 $ 4,900,704 $ 6,353,233 $ 1,452,529
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309
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual- Endowment Special Revenue Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
USE OF MONEY AND PROPERTY
Investment Earnings $ 30,000 $ 30,000 $ 25,226 $ (4,774)
Rents and Concessions 71,000 71,000 72,107 1,107
Total Use of Money and Property 101,000 101,000 97,333 (3,667)
CHARGES FOR SERVICES
Other Development Fees 436,000 436,000 59,283 (376,717)
Community Service Fees 34,000 34,000 4,578 (29,422)
Administration Fees -
Total Charges for Services 470,000 470,000 63,861 (406,139)
Total Revenues 571,000 571,000 161,194 (409,806)
EXPENDITURES
Capital Outlay 508,972 2,520,792 2,050,891 469,901
Total Expenditures 508,972 2,520,792 2,050,891 469,901
Excess(Deficiency)of Revenues
over Expenditures 62,028 (1,949,792) (1,889,697) 60,095
OTHER FINANCING SOURCES(USES)
Transfers Out -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balance 62,028 (1,949,792) (1,889,697) 60,095
Fund Balance, Beginning of Year 5,161,912 5,161,912 5,161,912
Fund Balance, End of Year $ 5,223,940 $ 3,212,120 $ 3,272,215 $ 60,095
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City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual- Park/Public Facilities Special Revenue Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
USE OF MONEY AND PROPERTY
Investment Earnings $ 32,000 $ 32,000 $ 26,377 $ (5,623)
Rents and Concessions 15,000 15,000 - (15,000)
Total Use of Money and Property 47,000 47,000 26,377 (20,623)
CHARGES FOR SERVICES
Trees/Landscape Fees 1,000 1,000 1,346 346
Library Facilities Fees 86,000 86,000 30,228 (55,772)
Fees in Lieu of Park Land 186,000 186,000 13,668 (172,332)
Other Development Fees 10,000 10,000 10,943 943
Total Charges for Services 283,000 283,000 56,185 (226,815)
OTHER REVENUES
Sale Plans/Specifications -
Total Other Revenues - - - -
Total Revenues 330,000 330,000 82,562 (247,438)
EXPENDITURES
Public Services 40,000 352,283 330,760 21,523
Parks and Recreation 4,900 (4,900)
Capital Outlay 437,405 1,038,970 486,356 552,614
Total Expenditures 477,405 1,391,253 822,016 569,237
Excess(Deficiency)of Revenues
over Expenditures (147,405) (1,061,253) (739,454) 321,799
OTHER FINANCING SOURCES(USES)
Transfers In -
Transfers Out -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balance (147,405) (1,061,253) (739,454) 321,799
Fund Balance, Beginning of Year 1,484,629 1,484,629 1,484,629
Fund Balance, End of Year $ 1,337,224 $ 423,376 $ 745,175 $ 321,799
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311
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual- MRA Operating Special Revenue Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
PROPERTY TAXES
Current Secured $ 3,100,000 $ 3,100,000 $ 2,747,954 $ (352,046)
Current Unsecured 760,000 875,000 872,642 (2,358)
Homeowners Property Exemption 19,000 19,000 30,773 11,773
Total Property Taxes 3,879,000 3,994,000 3,651,369 (342,631)
FINES AND FORFEITURES
Forfeiture&Penalties 4,490 4,490
Total Fines& Forfeitures - - 4,490 4,490
USE OF MONEY AND PROPERTY
Investment Earnings 43,000 43,000 34,623 (8,377)
Rents and Concessions 50,500 50,500 72,792 22,292
Total Use of Money and Property 93,500 93,500 107,415 13,915
OTHER REVENUES
Ticket Sales 51,000 86,000 116,808 30,808
Advertising in Brochures 6,000 6,000 1,600 (4,400)
Miscellaneous 2,025 2,025
57,000 92,000 120,433 28,433
Total Revenues 4,029,500 4,179,500 3,883,707 (295,793)
EXPENDITURES
Public Services 4,887,745 4,902,837 4,902,293 544
Capital Outlay 864,136 815,659 815,659
Debt Service:
Interest on Short-term Loan from City 100,000 (100,000)
Total Expenditures 5,751,881 5,718,496 5,002,293 716,203
Excess(Deficiency)of Revenues
over Expenditures (1,722,381) (1,538,996) (1,118,586) 420,410
Continued
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312
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual- MRA Operating Special Revenue Fund - Continued
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
OTHER FINANCING SOURCES(USES)
Proceeds from Bonds $ 5,000,000 $ $ $ -
Transfers In -
Transfers Out (11,000) (11,000) (58,507) (47,507)
Total Other Financing
Sources(Uses) 4,989,000 (11,000) (58,507) (47,507)
Net Change in Fund Balance 3,266,619 (1,549,996) (1,177,093) 372,903
Fund Balance, Beginning of Year 8,182,387 8,182,387 8,182,387
Fund Balance, End of Year $ 11,449,006 $ 6,632,391 $ 7,005,294 $ 372,903
85
313
City of Moorpark
Notes to the Required Supplementary Information
Year Ended June 30, 2011
Budgetary Accounting
The City adopts an annual budget on a basis consistent with GAAP for all governmental funds. The
City Manager is required to prepare and submit to the City Council the annual budget of the City and
administer it thereafter. All annual appropriations lapse at fiscal year-end. Throughout the year, the
City Council made several supplementing budgetary adjustments to various funds. These adjustments
resulted in a net appropriation increase of $28,662,947. This increase resulted primarily from
additional appropriations to various construction in progress projects, acquisition of property,
prepayments of certain liabilities and rebudgeted projects and amounts carried over from Fiscal Year
2009/10 as continuing appropriations.
•
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SUPPLEMENTARY INFORMATION
315
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316
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual- Police Facilities Fee Capital Projects Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
MAINTENANCE ASSESSMENTS
Police Facilities Fees $ 101,000 $ 101,000 $ 45,933 $ (55,067)
Total Maintenance Assessments 101,000 101,000 45,933 (55,067)
Total Revenues 101,000 101,000 45,933 (55,067)
EXPENDITURES
Public Safety -
Capital Outlay -
Total Expenditures - - - -
Excess(Deficiency)of Revenues
over Expenditures 101,000 101,000 45,933 (55,067)
Fund Balance,Beginning of Year (1,932,523) (1,932,523) (1,932,523)
Fund Balance,End of Year $ (1,831,523) $ (1,831,523) $ (1,886,590) $ (55,067)
87
317
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual- Redevelopment Agency Capital Projects Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
USE OF MONEY AND PROPERTY
Investment Earnings $ 70,000 $ 70,000 $ 50,219 $ (19,781)
Total Use of Money and Property 70,000 70,000 50,219 (19,781)
OTHER REVENUES
Revenues Not Elsewhere Classified -
Sale Plans/Specifications -
Total Other Revenues - - - -
Total Revenues 70,000 70,000 50,219 (19,781)
EXPENDITURES
Current:
Public Services
Capital Outlay 9,647,601 12,499,718 2,568,065 9,931,653
Total Expenditures 9,647,601 12,499,718 2,568,065 9,931,653
Excess(Deficiency)of Revenues
over Expenditures (9,577,601) (12,429,718) (2,517,846) 9,911,872
OTHER FINANCING SOURCES(USES)
Transfers In -
Transfers Out -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balances (9,577,601) (12,429,718) (2,517,846) 9,911,872
Fund Balance, Beginning of Year 15,774,479 15,774,479 15,774,479
Fund Balances, End of Year $ 6,196,878 $ 3,344,761 $ 13,256,633 $ 9,911,872
88
318
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual- Redevelopment Agency Debt Service Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
PROPERTY TAXES
Tax Increment Secured $ 1,754,735 $ 1,754,735 $ 1,753,399 $ (1,336)
Tax Increment Unsecured -
Total Property Taxes 1,754,735 1,754,735 1,753,399 (1,336)
USE OF MONEY AND PROPERTY
Investment Earnings 40,000 40,000 32,668 (7,332)
Total Use of Money and Property 40,000 40,000 32,668 (7,332)
Total Revenues _ 1,794,735 1,794,735 1,786,067 (8,668)
EXPENDITURES
Current:
Public Services -
Debt Service
Principal 40,000 555,000 555,000 -
Interest 507,437 1,350,874 1,350,874 -
Total Expenditures 547,437 1,905,874 1,905,874 -
Excess(Deficiency)of Revenues
over Expenditures 1,247,298 (111,139) (119,807) (8,668)
OTHER FINANCING SOURCES(USES)
Transfers In 151,139 151,139 151,139 -
Tranfers Out -
Total Other Financing
Sources(Uses) 151,139 151,139 151,139 -
Net Change in Fund Balance 1,398,437 40,000 31,332 (8,668)
Fund Balance, Beginning of Year 2,178,925 2,178,925 2,178,925
Fund Balance, End of Year $ 3,577,362 $ 2,218,925 $ 2,210,257 $ (8,668)
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319
City of Moorpark
Non-Major Governmental Funds
June 30, 2011
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 Fund (City) - is used to account for grants used for development of affordable
housing units. Sources of revenue are development fees and rental income.
Los Angeles Area of Contribution (A.O.C) Fund - is used to account for the financial resources for
capital projects related to streets and other improvements within the Los Angeles project area. Sources
of revenue are development fees.
Tierra Rejeda/Spring Road A.O.0 Fund - is used to account for the financial resources for capital
projects related to streets and other improvements within the Tierra Rejeda & Spring Road project area.
Sources of revenue are development fees.
Casey/Gabbert Road A.O.0 Fund - is used to account for the financial resources for capital projects
related to streets and other improvements within the Casey & Gabbert project area. Sources of revenue
are development fees.
Freemont Storm Drain A.O.0 Fund - is used to account for the financial resources for capital projects
related to streets and other improvements within the Freemont Storm Drain project area. Sources of
revenue are development fees.
State and Federal Assistance Fund - is used to account for Federal and State grants used for the
construction of street and related improvements and help fund law enforcement. Sources of funds are
federal and state grants.
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.
Proposition 1B Local Streets and Roads Fund — is used to account for funds received from the State of
California for specific transportation programs. Source of revenue is Prop 1B bond proceeds distributed
by the State of California.
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320
City of Moorpark
Non-Major Governmental Funds - Continued
June 30, 2011
SPECIAL REVENUE FUNDS - Continued
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.
Proposition 1B Safety and Security Fund—is used to account for the financial resources of the Prop 1B
bonds used for the seismic safety of bridges and public transit. Source of revenue is the State of
California selling Prop 1B bonds.
Low and Moderate Income Housing Fund (MRA) - is used to account for the receipt of 20 percent of
the gross tax increment allocation, which is restricted for use on projects that increase or preserve the
supply of low and moderate income housing in accordance with Health and Safety Code Section 33334.
Local Transportation Transit Fund - is used to account for fees spent on local transportation
operations, maintenance and related programs. Sources of revenue include Ventura County 8C funding,
the Federal Transportation Administration grant funding and bus fares.
Solid Waste Fund - is used to account for fees used on programs that promote resource conservation,
recycling, composting, and proper disposal of hazardous household waste. Sources of revenue are AB939
fees from rubbish operators, compost bin sales, the California Beverage Container grant, and the Used Oil
Recycling grant.
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.
City Hall Building Fund - is used to account for the funds used to build the new Civic Center
Complex. Original source of revenue was transfer from the Endowment Fund, current revenue source is
interest earnings.
Equipment Replacement Fund - is used to account for the funds used to replace city equipment and
vehicles. Sources of revenue are interest earnings and transfers from the General Fund.
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321
City of Moorpark
Combining Balance Sheet
Non-Major Governmental Funds
June 30,2011
Special Revenue
Los Angeles
Library Traffic Affordable Area of
Services Safety Housing Contribution
ASSETS
Cash and Investments $ 853,811 $ 654,059 $ 3,887,527 $ 11,563,020
Receivables:
Accounts 29 29,730 41
Interest 178,368
Notes 387,110 250,249
Due From Other Funds 177,006
Property Held for Resale/Development
Total Assets $ 853,840 $ 683,789 $ 4,274,678 $ 12,168,643
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable and Accrued Liabilities $ 58,632 $ 2,832 $ 3,500 $ 6,045
Due to Other Funds
Deferred Revenue 387,110 428,617
Total Liabilities 58,632 2,832 390,610 434,662
Fund Balances:
Restricted 680,957 3,884,068 11,733,981
Committed 795,208
Assigned
Unassigned
Total Fund Balances 795,208 680,957 3,884,068 11,733,981
Total Liabilities and Fund Balances $ 853,840 $ 683,789 $ 4,274,678 $ 12,168,643
92
322
Special Revenue
Tierra Rejada/ Freemont State and Prop 1B Art
Spring Road Casey/Gabbert Storm Drain Federal State Gas Local Streets in Public
A.O.0 A.O.0 A.O.0 Assistance Tax and Roads Places
$ $ 85,264 $ 15,280 $ 647,440 $ 397,426 $ 578,008 $ 1,654,795
102,391 120,275
$ - $ 85,264 $ 15,280 $ 749,831 $ 517,701 $ 578,008 $ 1,654,795
$ $ $ $ 8,333 $ 25,862 $ $
177,006 91,937
149,245
177,006 - - 249,515 25,862 - -
85,264 15,280 500,316 491,839 578,008 1,654,795
(177,006)
(177,006) 85,264 15,280 500,316 491,839 578,008 1,654,795
$ - $ 85,264 $ 15,280 $ 749,831 $ 517,701 $ 578,008 $ 1,654,795
Continued
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323
City of Moorpark
Combining Balance Sheet
Non-Major Governmental Funds-Continued
June 30,2011
Special Revenue
Prop 1B Low and Local
Safety Moderate Transportation Solid
and Security Income Housing Transit Waste
ASSETS
Cash and Investments $ 10,789 $ 571,498 $ 15,080 $ 968,154
Receivables:
Accounts 7,253 171,257 32,495
Interest 546
Notes 616,384
Due From Other Funds
Property Held for Resale/Development 8,302,304
Total Assets $ 10,789 $ 9,497,985 $ 186,337 $ 1,000,649
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable and Accrued Liabiliies $ 15,950 $ 20,309 $ 31,982 $ 12,381
Due to Other Funds 614,891
Deferred Revenue 616,384
Total Liabilities 15,950 1,251,584 31,982 12,381
Fund Balances:
Restricted 8,302,304 154,355 988,268
Committed
Assigned
Unassigned (5,161) (55,903)
Total Fund Balances (5,161) 8,246,401 154,355 988,268
Total Liabilities and Fund Balances $ 10,789 $ 9,497,985 $ 186,337 $ 1,000,649
94
324
Capital Projects Total
Nonmajor
Capital City Hall Equipment Governmental
Projects Building Replacement Funds
$218,667 $ 3,741,116 $ 358,017 $ 26,219,951
463,471
178,914
1,253,743
177,006
8,302,304
$218,667 $ 3,741,116 $ 358,017 $ 36,595,389
$ 144,649 $ 41,319 $ $ 371,794
883,834
1,581,356
144,649 41,319 - 2,836,984
29,069,435
795,208
74,018 3,699,797 358,017 4,131,832
(238,070)
74,018 3,699,797 358,017 33,758,405
$218,667 $ 3,741,116 $ 358,017 $ 36,595,389
95
325
City of Moorpark
Combining Statement of Revenues,Expenditures and Changes in Fund Balance
Non-Major Governmental Funds
Year Ended June 30,2010
Special Revenue
Los Angeles
Library Traffic Affordable Area of
Services Safety Housing Contribution
REVENUES
Taxes $ 795,586 $ $ $
Fines and Forteitures 19,456 186,845
Use of Money and Property 7,388 8,282 46,466 152,265
Charges for Services 8,160 59,979 264,995
Intergovernmental 12,853
Other Revenue 51,867 250
Total Revenues 843,443 195,127 158,312 417,510
EXPENDITURES
Current:
Public Safety 111,199
Public Services 874,481 198,050
Parks and Recreation
Capital Outlay 15,079 311,722
Debt Service:
Interest
Total Expenditures 874,481 126,278 198,050 311,722
Excess(Deficiency)of Revenues
Over Expenditures (31,038) 68,849 (39,738) 105,788
OTHER FINANCING SOURCES(USES)
Transfers In
Transfers Out
Total Other Financing Sources(Uses) - - - -
Net Change in Fund Balances (31,038) 68,849 (39,738) 105,788
Fund Balances,Beginning of Year 826,246 612,108 3,923,806 11,628,193
Fund Balances, End of Year $ 795,208 $ 680,957 $ 3,884,068 $ 11,733,981
96
326
Special Revenue
Tierra Rejada/ Freemont State and Prop 1B Art
Spring Road Casey/Gabbert Storm Drain Federal State Gas Local Streets in Public
A.O.0 A.O.0 A.O.0 Assistance Tax and Roads Places
$ $ $ $ $ $ $
1,114 200 8,465 2,624 7,824 21,285
84,028
1,572,446 975,527
73,889 6,781 345
- 1,114 200 1,654,800 984,932 7,824 105,658
100,000
813,024
9,142 1,655,935 28,860
9,142 - - 1,755,935 813,024 28,860 -
(9,142) 1,114 200 (101,135) 171,908 (21,036) 105,658
(9,142) 1,114 200 (101,135) 171,908 (21,036) 105,658
(167,864) 84,150 15,080 601,451 319,931 599,044 1,549,137
$ (177,006) $ 85,264 $ 15,280 $ 500,316 $ 491,839 $ 578,008 $ 1,654,795
Continued
97
327
City of Moorpark
Combining Statement of Revenues,Expenditures and Changes in Fund Balance
Non-Major Governmental Funds-Continued
Year Ended June 30,2010
Special Revenue
Prop 1B Low and Local
Safety Moderate Transportation Solid
and Security Income Housing Transit Waste
REVENUES
Taxes $ $ 1,351,192 $ $ 273,984
Fines and Forteitures
Use of Money and Property 1,032 36,936 58 12,888
Charges.for Services 65,321 2,366
Intergovernmental 1,958,537 29,663
Other Revenue 356,409 50
Total Revenues 1,032 1,744,537 2,023,966 318,901
EXPENDITURES
Current:
Public Safety
Public Services 2,259,483 404,242 324,715
Parks and Recreation
Capital Outlay 109,706 1,472,237
Debt Service:
Interest 20,642
Total Expenditures 109,706 2,280,125 1,876,479 324,715
Excess(Deficiency)of Revenues
Over Expenditures (108,674) (535,588) 147,487 (5,814)
OTHER FINANCING SOURCES(USES)
Transfers In 1,176,500
Transfers Out (151,139)
Total Other Financing Sources(Uses) - 1,025,361 - -
Net Change in Fund Balances (108,674) 489,773 147,487 (5,814)
Fund Balances,Beginning of Year 103,513 7,756,628 6,868 994,082
Fund Balances,End of Year $ (5,161) $ 8,246,401 $ 154,355 $ 988,268
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328
Capital Projects Total
Nonmajor
Capital City Hall Equipment Governmental
Projects Building Replacement Funds
$ $ $ $ 2,420,762
206,301
2,613 48,965 5,435 363,840
484,849
4,549,026
230 489,821
2,843 48,965 5,435 8,514,599
211,199
4,873,995
212,513 51,487 90,258 3,956,939
20,642
212,513 51,487 90,258 9,062,775
(209,670) (2,522) (84,823) (548,176)
58,507 1,235,007
(151,139)
58,507 - - 1,083,868
(151,163) (2,522) (84,823) 535,692
225,181 3,702,319 442,840 33,222,713
$ 74,018 $ 3,699,797 $ 358,017 $ 33,758,405
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329
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual- Library Services Special Revenue Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 775,000 $ 775,000 $ 795,586 $ 20,586
Fines and Forfeitures 17,000 17,000 19,456 2,456
Use of Money and Property 6,000 6,000 7,388 1,388
Charges for Services 10,000 10,000 8,160 (1,840)
Intergovernmental 13,000 13,000. 12,853 (147)
Total Revenues 821,000 821,000 843,443 22,443
EXPENDITURES
Current:
Public Services 863,429 893,383 874,481 18,902
Total Expenditures 863,429 893,383 874,481 18,902
Excess(Deficiency)of Revenues
over Expenditures (42,429) (72,383) (31,038) 41,345
OTHER FINANCING SOURCES(USES)
Transfers In -
Transfers Out -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balance (42,429) (72,383) (31,038) 41,345
Fund Balance, Beginning of Year 826,246 826,246 826,246
Fund Balance, End of Year $ 783,817 $ 753,863 $ 795,208 $ 41,345
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330
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual- Traffic Safety Special Revenue Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Fines and Forfeitures $ 175,000 $ 175,000 $ 186,845 $ 11,845
Use of Money and Property 5,000 5,000 8,282 3,282
Total Revenues 180,000 180,000 195,127 15,127
EXPENDITURES
Current:
Public Safety 113,428 122,428 111,199 11,229
Capital Outlay 15,750 15,079 671
Total Expenditures 113,428 138,178 126,278 11,900
Excess(Deficiency)of Revenues
over Expenditures 66,572 41,822 68,849 27,027
OTHER FINANCING SOURCES(USES)
Transfer In -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balance 66,572 41,822 68,849 27,027
Fund Balance, Beginning of Year 612,108 612,108 612,108
Fund Balance, End of Year $ 678,680 $ 653,930 $ 680,957 $ 27,027
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331
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual- Affordable Housing Special Revenue Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ 39,000 $ 39,000 $ 46,466 $ 7,466
Charges for Services 287,000 287,000 59,979 (227,021)
Other Revenue 1,000 31,000 51,867 20,867
Total Revenues 327,000 357,000 158,312 (198,688)
EXPENDITURES
Current:
Public Services 86,533 86,533 198,050 (111,517)
Total Expenditures 86,533 86,533 198,050 (111,517)
Excess(Deficiency)of Revenues
over Expenditures 240,467 270,467 (39,738) (310,205)
OTHER FINANCING SOURCES(USES)
Transfers Out (18,000) (18,000) 18,000
Total Other Financing
Sources(Uses) (18,000) (18,000) - 18,000
Net Change in Fund Balance 222,467 252,467 (39,738) (292,205)
Fund Balance,Beginning of Year 3,923,806 3,923,806 3,923,806
Fund Balance, End of Year $ 4,146,273 $ 4,176,273 $ 3,884,068 $ (292,205)
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332
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual- Los Angeles Area of Contribution Special Revenue Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ 120,000 $ 120,000 $ 152,265 $ 32,265
Charges for Services 272,000 272,000 264,995 (7,005)
Expense Reimbursement 250 250
Total Revenues 392,000 392,000 417,510 25,510
EXPENDITURES
Capital Outlay 6,709,229 7,913,791 311,722 7,602,069
Total Expenditures 6,709,229 7,913,791 311,722 7,602,069
Excess(Deficiency)of Revenues
over Expenditures (6,317,229) (7,521,791) 105,788 7,627,579
OTHER FINANCING SOURCES(USES)
Transfers In -
Transfers Out -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balance (6,317,229) (7,521,791) 105,788 7,627,579
Fund Balance, Beginning of Year 11,628,193 11,628,193 11,628,193
Fund Balance, End of Year $ 5,310,964 $ 4,106,402 $ 11,733,981 $ 7,627,579
103
333
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Tierra Rejada/Spring Road A.O.0 Special Revenue Fund,
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ $ $ $ -
Charges for Services -
Other Revenue -
Total Revenues - - - -
EXPENDITURES
Capital Outlay 26,564 9,142 17,422
Total Expenditures - 26,564 9,142 17,422
Excess(Deficiency)of Revenues
over Expenditures - (26,564) (9,142) 17,422
OTHER FINANCING SOURCES(USES)
Transfers In -
Transfers Out -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balance - (26,564) (9,142) 17,422
Fund Balance, Beginning of Year (167,864) (167,864) (167,864)
Fund Balance, End of Year $ (167,864) $ (194,428) $ (177,006) $ 17,422
104
334
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual- Cassey/Gabbert Area of Contribution Special Revenue Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ 1,000 $ 1,000 $ 1,114 $ 114
Charges for Services -
Total Revenues 1,000 1,000 1,114 114
EXPENDITURES
Capital Outlay -
Total Expenditures - - - -
Excess(Deficiency)of Revenues
over Expenditures 1,000 1,000 1,114 114
OTHER FINANCING SOURCES(USES)
Transfers In -
Transfers Out - - - -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balance 1,000 1,000 1,114 114
Fund Balance,Beginning of Year 84,150 84,150 84,150
Fund Balance, End of Year $ 85,150 $ 85,150 $ 85,264 $ 114
105
335
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual- Freemont Storm Drain A.O.0 Special Revenue Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ - $ - $ 200 $ 200
Total Revenues - - 200 200
EXPENDITURES
Capital Outlay -
Total Expenditures - - - -
Excess(Deficiency)of Revenues
over Expenditures - - 200 200
OTHER FINANCING SOURCES(USES)
Transfers In -
Transfers Out - - -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balance - - 200 200
Fund Balance, Beginning of Year 15,080 15,080 15,080
Fund Balance, End of Year $ 15,080 $ 15,080 $ 15,280 $ 200
106
336
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, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ 12,000 $ 12,000 $ 8,465 $ (3,535)
Intergovernmental 2,898,865 4,246,315 1,572,446 (2,673,869)
Other Revenue 73,889 73,889
Total Revenues 2,910,865 4,258,315 1,654,800 (2,603,515)
EXPENDITURES
Current:
Public Safety 100,000 100,000 100,000 -
Public Services 12,000 86,800 86,800
Capital Outlay 2,982,129 4,145,190 1,655,935 2,489,255
Total Expenditures 3,094,129 4,331,990 1,755,935 2,576,055
Excess(Deficiency)of Revenues
over Expenditures (183,264) (73,675) (101,135) (27,460)
OTHER FINANCING SOURCES(USES)
Transfers In - - -
Transfers Out -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balance (183,264) (73,675) (101,135) (27,460)
Fund Balance, Beginning of Year 601,451 601,451 601,451
Fund Balance, End of Year $ 418,187 $ 527,776 $ 500,316 $ (27,460)
107
337
City of Moorpark
Schedule of Revenues,Expenditures, and Changes in Fund Balance
Budget and Actual- State Gas Tax Special Revenue Fund
Year Ended June 30,2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ 1,000 $ 1,000 $ 2,624 $ 1,624
Intergovernmental 596,000 716,000 975,527 259,527
Other Revenue 6,781 6,781
Total Revenues 597,000 717,000 984,932 267,932
EXPENDITURES
Current:
Public Services 923,459 865,127 813,024 52,103
Capital Outlay 50,000 50,000 50,000
Total Expenditures 973,459 915,127 813,024 102,103
Excess (Deficiency)of Revenues
over Expenditures (376,459) (198,127) 171,908 370,035
OTHER FINANCING SOURCES(USES)
Transfers In -
Transfers Out -
Total Other Financing
Sources(Uses) _ _ _ -
Net Change in Fund Balance (376,459) (198,127) 171,908 370,035
Fund Balance, Beginning of Year 319,931 319,931 319,931
Fund Balance, End of Year $ (56,528) $ 121,804 $ 491,839 $ 370,035
108
338
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual- Prop 1B Local Streets and Roads Special Revenue Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ 12,000 $ 12,000 $ 7,824 $ (4,176)
Other Revenue -
Total Revenues 12,000 12,000 7,824 (4,176)
EXPENDITURES
Capital Outlay 537,000 567,922 28,860 539,062
Total Expenditures 537,000 567,922 28,860 539,062
Excess(Deficiency)of Revenues
over Expenditures (525,000) (555,922) (21,036) 534,886
Fund Balance,Beginning of Year 599,044 599,044 599,044
Fund Balance,End of Year $ 74,044 $ 43,122 $ 578,008 $ 534,886
109
339
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, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ 15,000 $ 15,000 $ 21,285 $ 6,285
Intergovernmental 249,000 249,000 84,028 (164,972)
Other Revenue 345 345
Total Revenues 264,000 264,000 105,658 (158,342)
EXPENDITURES
Capital Outlay 8,000 8,000 - 8,000
Total Expenditures 8,000 8,000 - 8,000
Excess(Deficiency)of Revenues
over Expenditures 256,000 256,000 105,658 (150,342)
Fund Balance,Beginning of Year 1,549,137 1,549,137 1,549,137
Fund Balance,End of Year $ 1,805,137 $ 1,805,137 $ 1,654,795 $ (150,342)
110
340
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual- Prop 1B Safety and Security Special Revenue Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ 1,000 $ 1,000 $ 1,032 $ 32
Intergovernmental -
Total Revenues 1,000 1,000 1,032 32
EXPENDITURES
Capital Outlay 100,000 109,706 (9,706)
Total Expenditures - 100,000 109,706 (9,706)
Excess(Deficiency)of Revenues
over Expenditures 1,000 (99,000) (108,674) (9,674)
OTHER FINANCING SOURCES(USES)
Transfers In - - - -
Transfers Out -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balance 1,000 (99,000) (108,674) (9,674)
Fund Balance,Beginning of Year 103,513 103,513 103,513
Fund Balance,End of Year $ 104,513 $ 4,513 $ (5,161) $ (9,674)
111
341
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual- Low and Moderate Income Housing Special Revenue Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 1,407,000 $ 1,447,000 $ 1,351,192 $ (95,808)
Use of Money and Property 31,000 31,000 36,936 5,936
Other Revenues 356,000 356,409 409
Total Revenues 1,438,000 1,834,000 1,744,537 (89,463)
EXPENDITURES
Current:
Public Services 345,833 1,126,603 2,259,483 (1,132,880)
Capital Outlay 45,383 _
Debt Service:
Principal 16,000 16,000 16,000
Interest 20,000 20,000 20,642 (642)
Total Expenditures 427,216 1,162,603 2,280,125 (1,117,522)
Excess(Deficiency)of Revenues
over Expenditures 1,010,784 671,397 (535,588) (1,206,985)
OTHER FINANCING SOURCES(USES)
Transfers In 1,176,500 1,176,500
Transfers Out (151,139) (151,139) (151,139) -
Total Other Financing
Sources(Uses) (151,139) (151,139) 1,025,361 1,176,500
Net Change in Fund Balance 859,645 520,258 489,773 (30,485)
Fund Balance, Beginning of Year 7,756,628 7,756,628 7,756,628
Fund Balance, End of Year $ 8,616,273 $ 8,276,886 $ 8,246,401 $ (30,485)
112
342
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, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ 4,000 $ 4,000 $ 58 $ (3,942)
Charges for Services 65,000 65,000 65,321 321
Intergovernmental 2,039,000 2,054,000 1,958,537 (95,463)
Other Revenue 50 50
Total Revenues 2,108,000 2,123,000 2,023,966 (99,034)
EXPENDITURES
Current:
Public Services 719,003 739,303 404,242 335,061
Capital Outlay 1,460,000 1,620,227 1,472,237 147,990
Total Expenditures 2,179,003 2,359,530 1,876,479 483,051
Excess(Deficiency)of Revenues
over Expenditures (71,003) (236,530) 147,487 384,017
OTHER FINANCING SOURCES(USES)
Transfers In -
Transfers Out (5,300) -
Total Other Financing
Sources(Uses) (5,300) - - -
Net Change in Fund Balance (76,303) (236,530) 147,487 384,017
Fund Balance, Beginning of Year 6,868 6,868 6,868
Fund Balance, End of Year $ (69,435) $ (229,662) $ 154,355 $ 384,017
113
343
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual- Solid Waste Special Revenue Fund
Year Ended June 30,2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 280,000 $ 280,000 $ 273,984 $ (6,016)
Use of Money and Property 10,000 10,000 12,888 2,888
Charges for Services 3,000 3,000 2,366 (634)
Intergovernmental 9,000 9,000 29,663 20,663
Other Revenue -
Total Revenues 302,000 302,000 318,901 16,901
EXPENDITURES
Current:
Public Services 375,395 375,395 324,715 50,680
Capital Outlay
-
Total Expenditures 375,395 375,395 324,715 50,680
Excess(Deficiency)of Revenues
over Expenditures (73,395) (73,395) (5,814) 67,581
Fund Balance,Beginning of Year 994,082 994,082 994,082
Fund Balance, End of Year $ 920,687 $ 920,687 $ 988,268 $ 67,581
114
344
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual- Capital Projects Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ 1,000 $ 1,000 $ 2,613 $ 1,613
Other Revenue 230 230
Total Revenues 1,000 1,000 2,843 1,843
EXPENDITURES
Capital Outlay 202,780 231,280 212,513 18,767
Total Expenditures 202,780 231,280 212,513 18,767
Excess(Deficiency)of Revenues
over Expenditures (201,780) (230,280) (209,670) 20,610
OTHER FINANCING SOURCES(USES)
Transfer In 60,000 60,000 58,507 (1,493)
Transfer Out _
Total Other Financing
Sources(Uses) 60,000 60,000 58,507 (1,493)
Net Change in Fund Balance (141,780) (170,280) (151,163) 19,117
Fund Balance, Beginning of Year 225,181 225,181 225,181
Fund Balance, End of Year $ 83,401 $ 54,901 $ 74,018 $ 19,117
115
345
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual- City Hall Building Capital Projects Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ 38,000 $ 38,000 $ 48,965 $ 10,965
Total Revenues 38,000 38,000 48,965 10,965
EXPENDITURES
Capital Outlay 3,548,795 3,652,791 51,487 3,601,304
Total Expenditures 3,548,795 3,652,791 51,487 3,601,304
Excess(Deficiency)of Revenues
over Expenditures (3,510,795) (3,614,791) (2,522) 3,612,269
OTHER FINANCING SOURCES(USES)
Transfer Out -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balance (3,510,795) (3,614,791) (2,522) 3,612,269
Fund Balance,Beginning of Year 3,702,319 3,702,319 3,702,319
Fund Balance,End of Year $ 191,524 $ 87,528 $ 3,699,797 $ 3,612,269
116
346
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual- Equipment Replacement Capital Projects Fund
Year Ended June 30, 2011
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of Money and Property $ 5,000 $ 5,000 $ 5,435 $ 435
Total Revenues 5,000 5,000 5,435 435
EXPENDITURES
Capital Outlay 94,500 104,500 90,258 14,242
Total Expenditures 94,500 104,500 90,258 14,242
Excess(Deficiency)of Revenues
over Expenditures (89,500) (99,500) (84,823) 14,677
OTHER FINANCING SOURCES(USES)
Transfer In -
Total Other Financing
Sources(Uses) - - - -
Net Change in Fund Balance (89,500) (99,500) (84,823) 14,677
Fund Balance,Beginning of Year 442,840 442,840 442,840
Fund Balance,End of Year $ 353,340 $ 343,340 $ 358,017 $ 14,677
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347
City of Moorpark
Statement of Changes in Net Assets
Agency Funds
Year Ended June 30, 2011
Balance at Balance at
July 1, 2010 Additions Deletions June 30, 2011
ASSETS
Cash and Investments $ 3,429,286 $ 254,794 $ $ 3,684,080
Restricted Cash and Investments 7,307,054 (503,174) 6,803,880
Accounts Receivable 23,307 93,084 116,391
Total Assets $ 10,759,647 $ 347,878 $ (503,174) $ 10,604,351
LIABILITIES
Accounts Payable $ 100,902 $ 56,775 $ $ 157,677
Developer Deposits 3,330,023 198,113 3,528,136
Due to Bondholders 7,328,722 (410,184) 6,918,538
Total Liabilities $ 10,759,647 $ 254,888 $ (410,184) $ 10,604,351
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STATISTICAL SECTION
349
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350
CITY OF MOORPARK
Net Assets by Component
Last Nine Fiscal Years
(accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006
Governmental activities:
Invested in capital assets,
net of related debt $ 85,969,804 $ 93,941,392 $ 99,760,671 $ 108,190,324
Restricted 39,344,368 41,506,906 46,405,391 57,986,366
Unrestricted 33,792,567 31,861,714 26,413,978 26,965,428
Total governmental activities net assets $ 159,106,739 $ 167,310,012 $ 172,580,040 $ 193,142,118
The City of Moorpark has elected to report retroactively back to the year the City
implemented GASB 34(June 30, 2003).
The City of Moorpark does not have any business-type activities.
119
351
CITY OF MOORPARK
Net Assets by Component
Last Nine Fiscal Years
(accrual basis of accounting)
Fiscal Year
2007 2008 2009 2010 2011
Governmental activities:
Invested in capital assets,
net of related debt $ 125,900,770 $ 130,071,108 $ 130,581,499 $ 141,095,551 $ 145,841,042
Restricted 100,649,409 101,613,368 94,878,693 91,504,803 72,652,252
Unrestricted 6,458,224 3,641,173 14,213,503 15,828,208 13,405,316
Total governmental activities net assets $ 233,008,403 $ 235,325,649 $ 239,673,695 $ 248,428,562 $ 231,898,610
The City of Moorpark has elected to report retroactively back to the year the City
implemented GASB 34(June 30, 2003).
The City of Moorpark does not have any business-type activities.
120
352
CITY OF MOORPARK
Changes in Net Assets
Last Nine Fiscal Years
(accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006
Expenses:
General government $ 2,116,644 $ 2,351,860 $ 3,030,395 $ 3,044,381
Public safety 4,142,268 4,902,148 5,709,323 6,230,057
Public services 7,150,513 10,957,272 9,844,050 13,106,843
Parks and recreation 2,276,066 2,600,523 2,304,852 2,771,270
Interest on long-term debt 1,040,854 1,097,421 978,843 1,333,370
Total governmental activities expenditures 16,726,345 21,909,224 21,867,463 26,485,921
Program revenues:
Charges for services:
General government 509,401 1,407,130 2,010,540 2,201,590
Public safety 708,392 369,795 344,019 340,341
Public services 2,166,168 4,181,363 2,776,976 4,163,781
Parks and recreation 322,772 536,238 501,283 536,166
Total charges for services 3,706,733 6,494,526 5,632,818 7,241,878
Operating contributions and grants 5,440,099 4,077,849 2,313,834 3,237,143
Capital contributions and grants 4,131,439 4,731,311 4,633,166 18,027,831
Total governmental activities
program revenues 13,278,271 15,303,686 12,579,818 28,506,852
Net program revenues(expenditures) (3,448,074) (6,605,538) (9,287,645) 2,020,931
General revenues and other changes in net assets:
Taxes:
Property tax 2,413,964 2,658,230 2,655,093 2,929,842
Property tax,Redevelopment Agency 3,577,050 4,116,542 3,901,779 5,530,198
Franchise tax 1,067,669 919,290 955,829 1,080,893
Sales tax 1,664,626 2,176,893 2,046,368 2,260,786
Sales tax in lieu - - 537,485 608,298
Motor vehicle in lieu 2,161,324 1,570,551 2,836,154 2,734,470
Investment income 2,027,190 1,363,344 1,725,579 3,261,384
Other 21,479 177,380 1,160,805 135,276
Gain on sale of property - - 48,339 -
Special item(1) - (900,000) - -
County settlement - - - -
Total governmental activities 12,933,302 12,082,230 15,867,431 18,541,147
Changes in net assets-
governmental activities $ 9,485,228 $ 5,476,692 $ 6,579,786 $ 20,562,078
The City of Moorpark has elected to report retroactively back to the year the City
implemented GASB 34 (June 30, 2003).
(1)Mission Bell note
121
353
CITY OF MOORPARK
Changes in Net Assets
Last Nine Fiscal Years
(accrual basis of accounting)
Fiscal Year
2007 2008 2009 2010 2011
Expenses:
General government $ 1,639,628 $ 1,949,206 $ 2,041,596 $ 1,603,279 $ 3,201,184
Public safety 6,317,283 6,882,072 7,035,384 7,016,015 7,070,049
Public services 21,231,766 20,580,204 18,170,325 13,589,878 31,775,462
Parks and recreation 4,293,823 4,551,045 4,470,524 4,934,002 4,658,717
Interest on long-term debt 1,332,541. 1,773,841 1,616,843 1,504,502 1,492,604
Total governmental activities expenditures 34,815,041 35,736,368 33,334,672 28,647,676 48,198,016
Program revenues:
Charges for services:
General government 191,674 283,576 232,926 258,431 293,008
Public safety 598,500 633,131 538,636 477,305 492,847
Public services 6,612,769 5,743,200 3,172,708 2,769,641 2,473,770
Parks and recreation 604,904 756,885 644,979 643,593 697,787
Total charges for services 8,007,847 7,416,792 4,589,249 4,148,970 3,957,412
Operating contributions and grants 4,489,945 7,113,883 6,172,315 4,128,842 5,999,168
Capital contributions and grants 38,337,638 5,481,972 3,326,778 1,970,931 1,703,076
Total governmental activities
program revenues 50,835,430 20,012,647 14,088,342 10,248,743 11,659,656
Net program revenues(expenditures) 16,020,389 (15,723,721) (19,246,330) (18,398,933) (36,538,360)
General revenues and other changes in net assets:
Taxes:
Property tax 3,334,491 4,505,980 7,802,643 7,449,063 7,287,282
Property tax,Redevelopment Agency 6,347,692 6,887,079 7,054,432 6,864,777 6,755,960
Franchise tax 1,126,951 1,150,180 1,171,556 1,171,825 1,207,778
Sales tax 2,192,327 2,306,281 2,329,522 2,382,010 2,577,105
Sales tax in lieu 704,562 779,263 849,227 588,635 940,791
Motor vehicle in lieu 2,860,207 3,038,440 125,307 109,136 170,592
Investment income 6,556,186 2,491,856 2,875,649 853,074 856,413
Other 58,841 139,728 386,040 283,372 212,487
Gain on sale of property 276,797 - - - -
Special item(1) - - - - -
County settlement - - 1,000,000 - -
Total governmental activities 23,458,054 21,298,807 23,594,376 19,701,892 20,008,408
Changes in net assets-
governmental activities $ 39,478,443 $ 5,575,086 $ 4,348,046 $ 1,302,959 $ (16,529,952)
The City of Moorpark has elected to report retroactively back to the year the City
implemented GASB 34 (June 30, 2003).
(1)Mission Bell note
122
354
CITY OF MOORPARK
Fund Balances of Governmental Funds
Last Nine Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006
General fund:
Reserved $ - $ - $ 5,772,444 $ 2,943,353
Unreserved 13,456,231 14,756,222 12,527,255 18,301,058
Nonspendable - - - -
Restricted - - - -
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total general fund $ 13,456,231 $ 14,756,222 $ 18,299,699 $ 21,244,411
All other governmental funds:
Reserved $ 4,378,065 $ 4,099,849 $ 13,889,036 $ 14,124,235
Unreserved, reported in:
Special revenue funds 32,857,500 29,994,471 26,977,320 36,903,391
Capital projects funds 9,625,965 8,950,250 3,361,134 1,293,998
Debt Service funds (97,935) (891,297) (346,716) (321,425)
Non-major funds 7,146,987 10,651,331 8,272,652 9,724,941
Fund Balances:
Nonspendable - - - -
Restricted - - - -
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total all other governmental funds $ 53,910,582 $ 52,804,604 $ 52,153,426 $ 61,725,140
The City of Moorpark has elected to report retroactively back to the year the City
implemented GASB 34 (June 30, 2003).
123
355
CITY OF MOORPARK
Fund Balances of Governmental Funds
Last Nine Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2007 2008 2009 2010 2011
General fund:
Reserved $ - $ 95,397 $ 373,209 $ 337,286
Unreserved 24,405,620 3,625,348 2,832,620 2,662,713
Nonspendable - - - - $ 220,976
Restricted - - - - -
Committed - - - - -
Assigned - - - - -
Unassigned - - - - 2,779,024
Total general fund $ 24,405,620 $ 3,720,745 $ 3,205,829 $ 2,999,999 $ 3,000,000
All other governmental funds:
Reserved $ 41,864,116 $ 35,103,620 $ 33,719,016 $ 38,208,807
Unreserved,reported in:
Special revenue funds 41,486,631 42,761,089 37,278,628 32,207,690
Capital projects funds 16,807,370 39,098,065 35,699,829 33,735,939
Debt Service funds 83,243 (1,025,927) 261,336 294,202
Non-major funds 8,693,969 13,384,413 25,043,397 25,335,288
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 $ 108,935,329 $ 129,321,260 $132,002,206 $ 129,781,926 $108,947,831
The City of Moorpark has elected to report retroactively back to the year the City
implemented GASB 34 (June 30, 2003).
124
356
CITY OF MOORPARK
Changes in Fund Balances of Governmental Funds
Last Nine Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006
Revenues:
Taxes $ 8,490,985 $ 9,870,955 $ 9,139,722 $ 12,231,076
Licenses and permits 51,083 63,146 54,180 72,365
Fines and forfeitures 290,054 306,871 344,019 340,341
Uses of money and property 2,027,190 1,363,006 1,924,579 3,261,384
Charges for services 867,731 2,001,561 2,558,974 2,665,391
Intergovernmental 4,051,263 4,298,009 5,150,992 6,302,193
Maintenance assessments 2,955,340 2,639,628 1,963,190 1,845,742
Franchise fees 232,324 257,127 1,231,763 283,162
Building and safety fees 608,879 595,138 431,959 1,110,715
Planning and public work fees 2,132,190 2,614,959 1,967,751 3,053,066
Development fees 4,486,128 4,097,977 2,669,976 15,568,347
Contributions from prop owners - - - -
Other 256,376 281,506 2,832,962 397,574
Total revenues 26,449,543 28,389,883 30,270,067 47,131,356
Expenditures:
Current:
General government 2,048,658 2,259,017 2,893,359 2,919,564
Public safety 4,127,670 4,882,547 5,690,820 6,211,461
Public services 8,765,039 8,401,453 8,098,147 11,215,406
Parks and recreation 2,063,428 2,381,698 2,081,723 2,544,206
Capital outlay 3,596,982 8,775,159 7,810,879 10,038,439
Debt service:
Principal 365,000 395,000 405,000 435,910
Interest 1,044,915 1,100,996 1,158,585 1,251,354
Bond issuance costs - - - -
Total expenditures 22,011,692 28,195,870 28,138,513 34,616,340
Excess of revenues over
expenditures 4,437,851 194,013 2,131,554 12,515,016
Other financing sources(uses):
Gain from sale of property - - 48,339 1,410
Bond Proceeds - - - -
Discount on Bonds - - - -
County settlements
Transfers in 3,781,938 3,588,717 2,027,315 3,352,002
Transfers out (3,781,938) (3,588,717) (2,027,315) (3,352,002)
Total other financing
sources(uses) - - 48,339 1,410
Net change in fund balances $ 4,437,851 $ 194,013 $ 2,179,893 $ 12,516,426
Debt service as a percentage of
noncapital expenditures 8.3% 8.3% 8.3% 7.4%
The City of Moorpark has elected to report retroactively back to the year the City implemented
GASB 34 (June 30, 2003).
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CITY OF MOORPARK
Changes in Fund Balances of Governmental Funds
Last Nine Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2007 2008 2009 2010 2011
Revenues:
Taxes $ 13,706,024 $ 15,392,269 $ 19,716,636 $ 18,730,771 $ 19,042,900
Licenses and permits 65,630 72,951 645,010 598,370 587,186
Fines and forfeitures 343,579 358,665 484,930 436,377 441,543
Uses of money and property 7,085,104 5,684,111 3,114,881 1,547,229 1,537,255
Charges for services 338,929 677,277 3,813,159 3,284,275 2,579,593
Intergovernmental 6,163,985 7,549,040 3,948,059 2,629,132 4,786,235
Maintenance assessments 1,922,471 4,205,700 3,491,975 1,950,431 2,112,992
Franchise fees 292,003 301,514 - - -
Building and safety fees 716,552 530,761 - - -
Planning and public work fees 1,649,002 1,938,143 - - -
Development fees 6,403,851 4,501,837 - - -
Contributions from prop owners 34,066,993 - - - -
Other 2,030,211 433,378 398,539 587,832 833,082
Total revenues 74,784,334 41,645,646 35,613,189 29,764,417 31,920,786
Expenditures:
Current:
General government 1,471,354 1,835,801 1,926,283 1,497,916 2,289,299
Public safety 6,083,917 6,637,757 6,814,425 6,769,484 6,839,355
Public services 9,608,754 12,505,613 11,259,297 12,343,896 12,876,132
Parks and recreation 4,039,888 4,291,867 4,182,091 4,453,400 4,074,490
Capital outlay 19,477,866 14,682,017 8,100,604 5,548,179 24,506,524
Debt service:
Principal 440,000 455,000 475,000 495,000 1,874,064
Interest 1,400,985 1,631,932 1,594,062 1,482,799 1,471,516
Bond issuance costs 505,588 - - - -
Total expenditures 43,028,352 42,039,987 34,351,762 32,590,674 53,931,380
Excess of revenues over
expenditures 31,755,982 (394,341) 1,261,427 (2,826,257) (22,010,594)
Other financing sources(uses):
Gain from sale of property 276,797 - - - -
Bond Proceeds 11,695,000 - - - -
Discount on Bonds (325,401) - - - -
County settlements 1,000,000 - -
Transfers in 9,457,260 27,626,755 17,062,650 9,378,101 3,820,738
Transfers out (9,457,260) (27,626,755) (17,062,650) (9,378,101) (2,644,238)
Total other financing
sources(uses) 11,646,396 - 1,000,000 - 1,176,500
Net change in fund balances $ 43,402,378 $ (394,341) $ 2,261,427 $ (2,826,257) $(20,834,094)
Debt service as a percentage of
noncapital expenditures 8.7% 8.3% 8.6% 7.9% 12.8%
The City of Moorpark has elected to report retroactively back to the year the City implemented
GASB 34 (June 30, 2003).
126
358
CITY OF MOORPARK
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
City Redevelopment Agency
Fiscal Year Taxable Taxable Total
Ended Less: Assessed Less: Assessed Direct Tax
June 30 Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value Rate
2002 $ 2,549,782,519 $ 94,204,773 $ 41,025,922 $ 2,685,013,214 $456,765,976 $ 64,634,089 $ 3,860,792 $525,260,857 1.042%
2003 2,823,727,286 120,175,258 42,238,926 2,986,141,470 514,599,965 84,435,148 3,862,434 602,897,547 1.061%
2004 3,026,137,647 155,943,246 43,185,512 3,225,266,405 542,789,850 95,244,418 3,915,879 641,950,147 1.058%
2005 3,231,418,940 172,769,806 43,305,637 3,447,494,383 532,445,978 93,810,856 3,904,910 630,161,744 1.050%
2006 3,721,591,791 168,802,350 43,313,074 3,933,707,215 660,810,677 99,693,057 3,931,766 764,435,500 1.055%
2007 4,157,360,033 165,798,359 43,364,070 4,366,522,462 743,592,913 102,795,641 3,958,627 850,347,181 1.062%
2008 4,558,597,806 173,209,606 45,607,510 4,777,414,922 809,452,407 102,442,198 4,276,693 916,171,298 1.050%
2009 4,700,305,496 174,181,146 46,351,377 4,920,838,019 828,244,210 102,730,045 4,309,164 935,283,419 1.050%
2010 4,619,910,655 180,988,669 46,474,508 4,847,373,832 825,093,781 113,302,525 4,333,240 942,729,546 1.050%
2011 4,659,133,835 153,090,627 46,689,455 4,858,913,917 813,947,565 110,905,079 4,436,801 929,289,445 1.053%
NOTE:
In 1978 the voters of the State of Califomia passed Proposition 13 which limited property taxes to a total maximum rate of 1%based upon the assesses
value of the property being taxed. Each year,the assessed value of property may be increased by an"inflation factor"(limited to a maximum increase
of 2%). With few exceptions,property is only re-assessed at the time that it is sold to a new owner. At that point,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.
Source: Ventura County Assessor's Office
127
359
CITY OF MOORPARK
Direct and Overlapping Property Tax Rates
(Rate per$100 of assessed value)
Last Ten Fiscal Years
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
City Direct Rates:
City basic rate 1.04171 1.06072 1.05820 1.05020 1.05480 1.06163 1.04955 1.04950 1.05020 1.05300
Redevelopment agency - - - - - - _ - - -
Total City Direct Rate 1.042 1.061 1.058 1.050 1.055 1.062 1.050 1.050 1.050 1.053
Overlapping Rates:
Ventura County Flood Cont. 8.039 8.097 n/a n/a n/a n/a n/a n/a n/a n/a
Metropolitan Water District 0.229 2.340 0.233 0.232 0.235 0.233 0.234 0.230 0.230 0.233
Ventura Community College n/a 4.312 4.311 4.269 4.331 4.296 4.361 4.371 4.402 4.383
Ventura County Waterworks n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Conejo Valley Unified School
District 0.027 0.025 0.024 0.022 0.020 0.019 0.018 0.018 0.019 0.019
Moorpark Unified School
District 92.311 91.733 91.959 92.121 92.442 92.313 92.417 92.240 91.924 91.820
City of Moorpark 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000
City of Moorpark Community
Facilities District No.97-1 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000
City of Moorpark 1915 Act
Bonds 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000
Total Direct Rate 101.648 107.568 97.585 97.694 98.083 97.923 98.080 97.909 97.625 97.508
NOTE:
1) In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00%fixed amount. This 1.00%is
shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property
owners are charged taxes as a percentage of assessed property values for the payment of the Moorpark Unified School District
bonds.
2) The direct and overlapping bonded debt above is not the City's nor the Redevelopment Agency's obligation.
3) The Total Direct Rate is comprised of its five components listed above,the Metropolitan Water District,Ventura Community
College,Ventura County Waterworks,Conejo Valley Unified School District,and the Moorpark Unified School District.
Source: California Municipal Statistics
Ventura County Assessor
128
360
CITY OF MOORPARK
Principal Property Tax Payers
Current Year and Ten Years Ago
2010 2000
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value * Value Value Value
DBRE Moorpark LLC $ 60,034,300 12.20% $ - 0.00%
Waterstone Properties Moorpark LLC 48,328,000 9.82% - 0.00%
G&Y Moorpark LLC 25,486,870 5.18% - 0.00%
Tuscany Square Partners LLC 24,390,492 4.96% - 0.00%
Mission Bell West LP 23,275,279 4.73% 20,208,563 7.53%
James Birkenshaw,Et.Al. 19,866,419 4.04% 12,264,597 4.57%
Calabasas BCD Inc. 19,508,390 3.96% 11,751,954 4.38%
Fred Kavli 15,740,512 3.20% 12,701,599 4.73%
Mission Bell East LLC 14,091,511 2.86% 14,297,706 5.33%
Leonard.Rose Trust 11,926,094 2.42% 9,998,062 3.72%
$ 262,647,867 53.37% $ 81,222,481 30.25%
* 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 2010-2011 property data
129
361
CITY OF MOORPARK
Secured Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Collections
Fiscal Taxes Levied Fiscal Year of Levy from Total Collections
Year Ended for the Percent Previous Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy
2002 1,832,673 1,581,343 86.29% 63,897 $1,645,240 89.77%
2003 2,036,839 1,732,812 85.07% 77,316 $1,810,128 88.87%
2004 2,208,605 1,902,007 86.12% 84,452 $1,986,459 89.94%
2005 2,391,927 1,796,670 75.11% 87,669 $1,884,339 78.78%
2006 2,705,083 1,994,418 73.73% 93,157 $2,087,575 77.17%
2007 3,010,493 2,432,164 80.79% 124,057 $2,556,221 84.91%
2008 4,072,510 3,376,883 82.92% 145,134 $3,522,017 86.48%
2009 3,763,078 3,393,933 90.19% 208,491 $3,602,423 95.73%
2010 3,682,559 2,789,672 75.75% 262,057 $3,051,730 82.87%
2011 3,663,098 3,388,402 92.50% 184,044 $3,572,446 97.53%
NOTE:
The amount presented includes City property taxes only.
It does not include redevelopment tax increment.
Source: Ventura County Auditor Controller's Office Levy Letter
Note: In FY 2007/08 $785,653 in adjustments(including the Library)were added to the Levy Letter
130
362
CITY OF MOORPARK
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Fiscal Year General Tax Total Total Percentage Debt
Ended Obligation Allocation Governmental Primary of Personal Per
June 30 Bonds Bonds 1 Activities Government Income Z Capita 2
2002 - $ 20,465,000 $ 20,465,000 $20,465,000 0.73% 606
2003 - 20,100,000 20,100,000 20,100,000 0.67% 582
2004 - 19,705,000 19,705,000 19,705,000 0.65% 564
2005 - 19,300,000 19,300,000 19,300,000 0.64% 537
2006 - 18,880,000 18,880,000 18,880,000 0.62% 527
2007 - 30,135,000 30,135,000 30,135,000 0.95% 826
2008 - 29,680,000 29,680,000 29,680,000 0.84% 803
2009 - 29,185,000 29,185,000 29,185,000 0.83% 787
2010 - 28,710,000 28,710,000 28,710,000 0.81% 764
2011 - 28,155,000 28,155,000 28,155,000 0.83% 811
Notes: Details regarding the City's outstanding debt can be found in the notes to the
financial statements.
1 The Moorpark Redevelopment Agency issued$9,860,000 of new tax allocation bonds in 1999,
$11,625,000 in 2001,and$11,695,000 in 2006.
The principal balance on these three bonds as of June 30, 2011 is $4,995,000, $11,505,000 and$11,655,000
respectively.
2 These ratios are calculated using personal income and population for the prior calendar year.
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363
CITY OF MOORPARK
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Outstanding General Bonded Debt
Fiscal Year General Tax Percent of
Ended Obligation Allocation Assessed Per
June 30 Bonds Bonds Total Value i Capita
2002 - $ 20,465,000 $ 20,465,000 0.64% 606
2003 - 20,100,000 20,100,000 0.56% 582
2004 - 19,705,000 19,705,000 0.51% 564
2005 - 19,300,000 19,300,000 0.47% 537
2006 - 18,880,000 18,880,000 0.40% 527
2007 - 30,135,000 30,135,000 0.58% 826
2008 - 29,680,000 29,680,000 0.52% 803
2009 - 29,185,000 29,185,000 0.50% 787
2010 - 28,710,000 28,710,000 0.50% 764
2011 - 28,155,000 28,155,000 0.49% 811
General bonded debt is debt payable with governmental fund resources and general
obligation bonds recorded in enterprise funds(of which,the City has none).
1 Assessed value has been used because the actual value of taxable property is not
readily available in the State of California.
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364
CITY OF MOORPARK
Direct and Overlapping Debt
June 30,2011
City Assessed Valuation 2010-11 $ 4,812,567,462
Redevelopment Agency Incremental Valuation 660,697,282
Adjusted Assessed Valuation $ 4,151,870,180
Estimated
Share of
Percentage Debt as of Overlapping
Applicable 6/30/2011 Debt
Direct and Overlapping Tax and Assessment Debt:
Metropolitan Water District 0.233% $ 227,670,000 $ 530,471
Ventura Community College District 4.383% 314,522,814 13,785,535
Conejo Valley Unified School District 0.019% 31,501,749 5,985
Moorpark Unified School District 91.820% 39,985,407 36,714,601
City of Moorpark Community Facilities District No.97-1 100.000% 5,940,000 5,940,000
City of Moorpark Community Facilities District No.2004-1 100.000% 25,480,000 25,480,000
City of Moorpark 1915 Act Bonds 100.000% 1,400,000 1,400,000
Toal Direct and Overlapping Tax&Assessment Debt 646,499,970 83,856,592
Overlapping General Fund Obligation Debt:
Ventura County General Fund Obligations 4.382% $ 101,290,000 $ 4,438,528
Ventura County Superintendent of Schools COPS 4.382% 12,140,000 531,975
Moorpark Unified School District COPS 91.820% 8,630,000 7,924,066
Total Overlapping General Fund Obligation Debt 122,060,000 12,894,569
Combined Total Debt* $ 768,559,970 96,751,161
Total direct and overlapping debt $ 96,751,161
Notes:
* Excludes tax and revenue anticipation notes,revenue,mortgage revenue
and tax allocation bonds and non-bonded capital lease obligations.
The direct and overlapping bonded debt above is not the City's or the
Redevelopment Agency'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.
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365
CITY OF MOORPARK
Legal Debt Margin Information
Last Ten Fiscal Years
2002 2003 2004 2005 2006
Assessed valuation $2,549,782,519 $ 2,823,727,286 $ 2,823,727,286 $3,231,418,940 $ 3,721,591,791
Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 637,445,630 705,931,822 705,931,822 807,854,735 930,397,948
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 95,616,844 105,889,773 105,889,773 121,178,210 139,559,692
Total net debt applicable to limit:
General obligation bonds - - - - -
Legal debt margin $ 95,616,844 $ 105,889,773 $ 105,889,773 $ 121,178,210 $ 139,559,692
Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0%
The Government Code 2227 of the State of California provides for a legal debt limit of 15%of gross assessed valuation.
However,this provision was enacted when assessed valuation was based upon 25%of market value. Effective with the
81-82 fiscal year,each parcel is now assessed at 100%of market value(as of the most recent change in ownership for
that parcel). The computations shown above reflect a conversion of assessed valuation date for each fiscal year from
the current full valuation perspective to the 25%level that was in effect at the time that the legal debt margin was enacted
by the State of California for local governments located within the state.
Source: City Finance Department
Ventura County Tax Assessor's Office
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366
CITY OF MOORPARK
Legal Debt Margin Information
Last Ten Fiscal Years
2007 2008 2009 2010 2011
Assessed valuation $ 4,157,360,033 $ 4,558,597,806 $ 4,700,305,496 $ 4,619,910,655 $ 4,659,133,835
Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,039,340,008 1,139,649,452 1,175,076,374 1,154,977,664 1,164,783,459
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 155,901,001 170,947,418 176,261,456 173,246,650 174,717,519
Total net debt applicable to limit:
General obligation bonds - - - - -
Legal debt margin $ 155,901,001 $ 170,947,418 $ 176,261,456 $ 173,246,650 $ 174,717,519
Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0%
The Government Code 2227 of the State of California provides for a legal debt limit of 15%of gross assessed valuation.
However,this provision was enacted when assessed valuation was based upon 25%of market value. Effective with the
81-82 fiscal year,each parcel is now assessed at 100%of market value(as of the most recent change in ownership for
that parcel). The computations shown above reflect a conversion of assessed valuation date for each fiscal year from
the current full valuation perspective to the 25%level that was in effect at the time that the legal debt margin was enacted
by the State of California for local governments located within the state.
Source: City Finance Department
Ventura County Tax Assessor's Office
135
367
CITY OF MOORPARK
Pledged-Revenue Coverage
Last Ten Fiscal Years
Tax Allocation Bonds
Fiscal Year
Ended Tax Debt Service
June 30 Increment Principal Interest Coverage
2002 2,606,388 355,000 408,638 3.41
2003 3,537,293 365,000 989,554 2.61
2004 4,076,183 395,000 976,140 2.97
2005 3,860,624 405,000 959,942 2.83
2006 5,487,272 420,000 944,281 4.02
2007 6,306,385 440,000 1,085,040 4.14
2008 6,858,882 455,000 909,906 5.03
2009 7,010,760 475,000 1,397,922 3.74
2010 6,842,837 495,000 1,376,088 3.66
2011 6,716,136 555,000 1,350,874 3.52
Note: Details regarding Moorpark Redevelopment Agency outstanding debt can be
found in the notes to the financial statements. Operating expenses do not include interest
or depreciation expenses.
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368
CITY OF MOORPARK
Demographic and Economic Statistics
Last Ten Calendar Years
Household Median Unemployment
Calendar Population Income Household Rate
Year (1) (in thousands) Income(2) (3)
2002 33,760 $ 2,811,600 $ 83,282 6.8%
2003 34,529 2,978,092 86,249 7.2%
2004 34,933 3,054,507 87,439 6.4%
2005 35,933 3,039,105 84,577 5.4%
2006 35,836 3,050,432 85,122 4.4%
2007 36,480 3,179,341 87,153 4.7%
2008 36,971 3,526,775 95,393 5.7%
2009 37,086 3,508,076 94,593 10.3%
2010 37,576 3,565,248 94,881 10.6%
2011 34,710 3,385,509 97,537 10.0%
Sources: (1) State Department of Finance or Community Development Department
(2) California Desert Association of Realtors
(3) State of California Employment Development Department
137
369
CITY OF MOORPARK
Principal Employers
Current and Ten Years Ago
2011 2001
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
Moorpark Unified School District 825 4.94% 850 5.13%
Moorpark College 750 4.49% 600 3.62%
Pentair Pool Products 377 2.26% 510 3.08%
Kavlico 350 2.09% 1,400 8.45%
Chicago Telephone Service 340 2.03% - 0.00%
Zodiac Pool Systems 250 1.50% - 0.00%
Target 150 0.90% - 0.00%
Boething Tree Farm 122 0.73% 135 0.82%
American Board Assembly 115 0.69% 200 1.21%
Kohl's 89 0.53% - 0.00%
"Total Employment" as used above represents the total employment of all employers located within
City limits. The total number of employees within the City limits in 2011 were 16,710 as compared to
the total number of employees within the City limits in 2001 were 16,559.
Source: Chamber of Commerce
City-data.com
Bureau of Labor Statistics
138
370
CITY OF MOORPARK
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Function 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
General government 36 43 33 32 31 30 26 26 26 27
Public safety(crossing guards) 6 6 7 4 7 7 7 6 5 5
Public services 41 38 20 17 17 26 22 22 20 16
Parks and recreation 19 19 42 38 41 49 54 56 55 54
Total 102 106 102 91 96 112 109 110 106 102
Public safety 1 33 30 28 31 31 42 42 38 38 40
1 Police and fire services were provided by the County.
Fire= 18 and police=22
Source:City of Moorpark,Finance department
139
371
CITY OF MOORPARK
Operating Indicators
by Function
Last Ten Fiscal Years
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Police: (A)
Arrests 1,235 1,296 1,520 1,388 1,653 1,890 1,732 1,412 2,207 1,266
Parking citations issued 2,579 2,582 4,285 3,706 2,890 4,160 2,860 3,254 4,969 4,887
Fire: (B)
Number of"prime" emergency calls 1,103 1,179 1,415 1,308 1,329 1,351 1,362 1,100 1,945 1,707
Business Inspections* 117 117 125 125 125 123 130 143 115 196
Public works: (C)
Street resurfacing(miles) - 73.33 - 0.10 - 30.0 3.8 - 5.0 2.0
Parks and recreation: (D)
Number of recreation classes 386 317 290 364 338 479 378 265 419 325
Number of facility rentals 184 258 307 491 338 180 210 186 230 277
Prime calls and business inspections are for County of Ventura, Fire department station#42
* In November 2001, all business occupancies less than 10,000 sq. feet became eligible for self inspection program.
Source: City of Moorpark
(A)Provided by Moorpark Police Department.;
(B)Ventura County Fire Dept.;
(C)Moorpark Public Works Dept.;-every six years,the City plans to resurface its streets, 1/3 every other year (total street miles=220)
(D)Arroyo Vista Recreation Dept.;
Active Adult Center.
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CITY OF MOORPARK
Capital Asset Statistics
by Function
Last Ten Fiscal Years
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Fire:
Fire stations 2 2 2 2 2 2 2 2 2 2
Public works:
Streets(miles) 75 75 75 75 75 75 78 79 79 79
Streetlights 2,263 2,269 2,299 2,325 2,347 2,497 2,510 2,518 2,518 2,620
Traffic signals 15 16 17 17 17 17 20 20 20 21
Parks and recreation:
Parks 15 15 15 15 16 16 16 17 18 18
Community centers 2 2 2 2 2 2 2 2 2 2
Source:City of Moorpark
Of the streetlights,2,612 are owned by Edison and 8 are owned by the City
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373
ATTACHMENT 2
07RSTEAMAN,RAMIREZ&SMITH,INC.
CERTIFIED PUBLIC ACCOUNTANTS
December 13, 2011
Ron Ahlers,Finance Director
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93021
Dear Mr. Ahlers:
We have audited the financial statements of the City of Moorpark (City) as of and for the year
ended June 30, 2011. In planning and performing our audit of the financial statements of the City
for the year ended June 30, 2011, we considered its internal control in order to determine our
auditing procedures for the purpose of expressing our opinion on the financial statements and not to
provide assurance on the internal control. We noted no matters involving the internal control and its
operations that we consider to be material weaknesses under standards established by the American
Institute of Certified Public Accountants. However, we noted items of less significance which are
presented for your consideration.
This letter by its very nature is critical and does not highlight the many positive features of the City's
internal controls. These comments and recommendations are intended to improve the internal
controls or result in other operating efficiencies and are summarized as follows:
(1)
Purchasiniz Poli cy
As noted in the prior year, in gaining an understanding of the purchasing process, we noted the
City's Municipal Code only gives guidance for purchases of supplies and equipment, and refers to
the Public Contract Code for Public Project procurement policies. The Municipal Code states that
the City Council will establish, by resolution, procedures governing the purchase of contractual or
professional services, but no such resolution has been developed or adopted. The Finance
Department has an informal procedure manual that includes purchasing policies, but it is not very
clear or consistent regarding the procurement of professional services as well as which purchases
need to go through the requisition process with or without a purchase order. Also, other
departments do not necessarily have a copy of this manual to refer to when making purchases.
To strengthen internal controls over purchasing and procurements, we recommend that the City
revisit its purchasing policies,along with the informal Finance manual, and determine what changes
can be made to clarify the policies regarding procurement of professional services and help ensure
purchasing policies are consistent throughout the City.
Richard A.Teaman, CPA o Greg W. Fankhanel, CPA® David M. Ramirez, CPA ® Javier H. Carrillo, CPA
4201 Brockton Ave. Suite 100, Riverside CA 92501 • 951.274.9500 • 951.274.7828 FAx • www.trscpas.com
__ . _ 374
Management Response:
Management concurs with the recommendation and will review the current purchasing policies
and make suggested improvements with regards to the procurement of professional services. The
City Attorney has opined that professional services are not subject to competitive bidding.
Management will prepare appropriate policies and procedures for consideration by the City
Council.
(2)
Developer Deposit Funds
The City periodically receives deposits from various developers for development purposes.
When these deposits are received for new projects, it is the City's practice to create a new and
separate agency fund in the general ledger to track activity for each developer. As a result, many
of these deposit funds have been created over the years.
During our audit, we noted that some of the developer deposit funds have significant balances
(surplus and deficit). Inquiries with City staff indicated projects for some of the funds with
balances have been completed,but that a thorough reconciliation of certain deposits and balances
has not been performed for some time. It is our understanding City staff has started the process
of reconciling activity and balances in these funds, to determine what action and adjustments are
necessary. We recommend the City continue in its efforts to analyze and reconcile these
accounts, and establish formal procedures to ensure that all deposits are analyzed and reconciled
in a timely and consistent manner.
In addition, the City may want to revisit the policy of creating new funds for every new project.
Normally, cities will have one deposit fund for this type of activity, or even record the deposits
as liabilities in the general fund. Detailed schedules can be maintained separately from the
general ledger to track the deposits,with only control totals being recorded in the general ledger.
Management Response:
Management concurs with the recommendation and will continue to reconcile the developer
deposit funds until all funds have been reconciled. Management will create an accounting policy
that will outline the duties of each department in regards to these deposit funds. Management
has decided to continue the prior practice of creating new funds in the agency fund category to
account for each development project.
375
(3)
Fraud Prevention and Detection Program
As noted in the prior year, Management of the City is responsible for designing and
implementing systems and procedures for the prevention and detection of fraud, and for ensuring
a culture and environment that promotes honesty and ethical behavior. Fraud can range from
minor employee theft and unproductive behavior to misappropriation of assets and fraudulent
financial reporting.
The risk of fraud can be reduced through a combination of prevention, deterrence, and detection
measures. However, fraud can be difficult to detect because it often involves concealment
through falsification of documents or collusion among management, employees, or third parties.
Therefore, it is important to place a strong emphasis on fraud prevention, which may reduce
opportunities for fraud to take place, and fraud deterrence, which could persuade individuals that
they should not commit fraud because of the likelihood of detection and punishment. Moreover,
prevention and deterrence measures are much less costly than the time and expense required for
fraud detection and investigation.
While the City has taken steps to address the risk of fraud in certain areas, such as segregation of
duties and other internal controls, we recommend the City consider taking a more formal,
proactive approach to fraud prevention and deterrence. This would involve establishing an
ongoing program of formally identifying and measuring fraud risks, taking steps to mitigate
identified risks, and implementing and monitoring any necessary preventive and deterrent
measures.
For example, although the City provides training regarding ethics to management level
employees, the City may want to establish a more formal training program for all employees
regarding fraud. New employees should be trained at the time of hiring about the entity's values
and its code of conduct. This training should explicitly cover expectations of all employees
regarding (1) their duty to communicate certain matters; (2) a list of the types of matters,
including actual or suspected fraud, to be communicated along with specific examples; and (3)
information on how to communicate those matters. In addition to the training at the time of
hiring, employees should receive refresher training periodically thereafter.
As mentioned above, management needs to provide information to employees on how to
communicate fraud related matters. Research has shown that the majority of fraud is detected by
fellow employees, and not by outside auditors or internal controls. It is important for the City to
establish and communicate to employees a reporting system that is appropriate for the City. The
City should consider establishing a confidential reporting mechanism, which may include a
combination of internal reporting and an anonymous tip hotline, not only for employees, but also
for vendors and customers of the City.
376
In summary, the City has established controls over fraud in many areas and, based on our
experience, has set an appropriate "tone at the top" regarding ethical behavior. However, the
City should consider a more formal, proactive approach to preventing fraud. The above
comments do not address all components of a strong antifraud program. Additional information
can be provided to the City's management regarding this issue.
Management Response:
Management concurs with the recommendation. The City's Human Resources division is
currently developing ethics training for all employees. The City will research other such fraud
prevention training programs in order to train new and existing staff. The City will research
"fraud hotlines"for use by: citizens, employees,vendors, etc.
Summation
We would like to take this opportunity to express our appreciation for the assistance extended us
during the course of our audit. If we can be of further assistance, or if you have any questions
regarding our recommendations, please call our office. This letter is intended solely for the
information and use of management and is not intended to be and should not be used by anyone
other than these specified parties.
Respectfully submitted,
TEAMAN,RAMIREZ& SMITH,INC.
Greg W. Fankhanel
Certified Public Accountant
377
TEAM/'N,RAMIREZ&SMITH,INC. ATTACHMENT 3
® R CEBTIFIEO PUBLIC ACCOUNTANTS
City Council
City of Moorpark
Moorpark,California
Independent Auditor's Report on Compliance with Requirements that Could Have a Direct and
Material Effect on Each Major Program,Internal Control Over Compliance and on the Schedule of
Expenditures of Federal Awards in Accordance with OMB Circular A-133
Compliance
We have audited the City of Moorpark's compliance with the types of compliance requirements described in
the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the
City of Moorpark's major federal programs for the year ended June 30,2011. The City of Moorpark's major
federal programs are identified in the summary of auditors'results section of the accompanying schedule of
findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants
applicable to each of its major federal programs is the responsibility of the City of Moorpark's management.
Our responsibility is to express an opinion on the City of Moorpark's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of
States, .Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with
the types of compliance requirements referred to above that could have a direct and material effect on a major
federal program occurred. An audit includes examining, on a test basis, evidence about the City of
Moorpark's compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination of the City of Moorpark's compliance with those requirements.
In our opinion, the City of Moorpark complied, in all material respects, with the compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the
year ended June 30,2011.
Internal Control Over Compliance
Management of the City of Moorpark is responsible for establishing and maintaining effective internal
control over compliance with requirements of laws, regulations, contracts and grants applicable to federal
programs. In planning and performing our audit, we considered the City of Moorpark's internal control
over compliance with requirements that could have a direct and material effect on a major federal program
to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test
and report on internal control over compliance in accordance with OMB Circular A-133, but not for the
Richard A.Teaman, CPA• Greg W. Fankhanel, CPA e David M. Ramirez, CPA e Javier H. Carrillo, cPA
4201 Brockton Ave. Suite 100, Riverside CA 92501 a 951.274.9500 0 951.274.7828 FAx• www.trsopas.corn
-, - 378
purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we
do not express an opinion on the effectiveness of the City of Moorpark's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility
that material noncompliance with a type of compliance requirement of a federal program will not be
prevented,or detected and corrected,on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance
that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses,as defined above.
Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, each major fund, and the aggregate
remaining fund information of the City of Moorpark as of and for the year ended June 30, 2011, and have
issued our report thereon dated December 13, 2011. Our audit was performed for the purpose of forming
opinions on the financial statements that collectively comprise the City of Moorpark's financial statements as
a whole. The schedule of expenditures of federal awards is presented for purposes of additional analysis as
required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations,and is not a required part of the financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the financial statements. The information has been subjected to the auditing
procedures applied in the audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to
prepare the financial statements or to the 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 financial statements taken as a whole.
This report is intended solely for the information and use of the City Council,management, others within the
entity, federal awarding agencies and pass-through entities and is not intended to be and should not be used
by anyone other than these specified parties.
December 13,2011
4
379
CITY OF MOORPARK
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30,2011
Federal
Domestic Program
Federal Grantor/ Assistance Identification Program
Pass-through Grantor/Program Title Number Number Expenditures
U.S.Department of Transportation
Passed through the Ventura County Transportation
Commission:
Federal Transit Program 20.507 CA-90-Y522 $ 18,201
Federal Transit Program 20.507 CA-90-Y737 27,557
Federal Transit Program 20.507 CA-90-Y803 49,804
Federal Transit Program 20.507 CA-90-Y858 66,016
ARRA—Federal Transit Program 20.507 CA-96-X020 1,243,932
Total 1,405,510*
Passed through the State of California
Department of Transportation:
Highway Planning and Construction 20.205 ESPL-5436(015) 617,758*
U.S.Department of Energy
Direct Assistance:
ARRA—Energy Efficiency and Conservation
Block Grant 81.128 DE-EE002255 76,746
U.S.Department of Housing and Urban Development
Passed through the Ventura County Community
Development Commission:
Community Development Block Grant 14.218 B-09-UC-06-0507 54,294
Community Development Block Grant 14.218 B-10-UC-06-0507-NA09 160,000
Subtotal 214,294
U.S.Department of Health and Human Services
Passed through the Ventura County Area on Aging
Senior Nutrition Program 93.045 3C-004-071012-R3 25,240
Total Federal Financial Assistance $ 2,339,548
*Major Program
5
380
CITY OF MOORPARK
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30,2011
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLICABLE TO THE SCHEDULE OF
FEDERAL AWARDS
a) Scope of Presentation
The accompanying schedule presents only the expenditures incurred (and related awards received) by the
City of Moorpark that are reimbursable under programs of federal agencies providing financial assistance.
For the purpose of this schedule, financial assistance includes both federal financial assistance received
directly from a federal agency, as well as federal funds received indirectly by the City of Moorpark from a
non-federal agency or other organization. Only the portion of program expenditures reimbursable with such
federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum
federal reimbursement authorized or the portion of the program expenditures that were funded with state,
local or other non-federal funds are excluded from the accompanying schedule.
b) Basis of Accounting
The expenditures included in the accompanying schedule were reported on the modified accrual basis of
accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City of
Moorpark becomes obligated for payment as a result of the receipt of the related goods and services.
Expenditures reported include any property or equipment acquisitions incurred under the federal program.
c) Major Programs
The City had two major programs for the year ended June 30, 2011, consisting of the U.S. Department of
Transportation Federal Transit and Highway Planning and Construction Grants which had (,otal
disbursements of$2,023,268. This amount calculates to 86%of the total disbursements from federal awards.
6
381
CITY OF MOORPARK
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30,2011
SECTION I-SUMMARY OF AUDITORS'RESULTS
Financial Statements
Type of Auditors' Report Issued: Unqualified
Internal Control Over Financial Reporting:
Material Weakness(es) Identified? No
Significant Deficiencies Identified not Considered
to be Material Weaknesses? No
Noncompliance Material to Financial Statements Noted? No
Federal Awards
Internal Control Over Major Programs:
Material Weakness(es)Identified? No
Significant Deficiencies Identified not Considered
to be Material Weaknesses? No
Type of Auditors'Report Issued on Compliance for
Major Programs: Unqualified
Any Audit Findings Disclosed that are Required to be Reported in
Accordance With OMB Circular A-133, Section.510(a)? No
Identification of Major Programs:
CFDA Numbers Name of Federal Program or Cluster
U.S. Department of Transportation
20.507 Federal Transit Program
20.205 Highway Planning&Construction Grant
Dollar Threshold used to Distinguish Between Type A
And Type B Programs: $ 300,000
Auditee Qualified as Low-Risk Auditee? No
7
382
CITY OF MOORPARK
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30,2011
SECTION II-FINANCIAL STATEMENT FINDINGS
There were no auditors' findings required to be reported in accordance with GAS.
SECTION III-FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
There were no auditors' findings to be reported in accordance with paragraph.510(a)of OMB Circular A-133.
8
383
CITY OF MOORPARK
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30,2011
I. FINANCIAL STATEMENT FINDINGS
There were no auditors' findings required to be reported in accordance with GAS.
II. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAMS AUDIT
There were no auditors' findings to be reported in accordance with paragraph .510(a)of OMB Circular A-
133.
9
384
ATTACHMENT 4
7RSTF�^NRN F U8LiC A SMIfN NfI
CETIF!ED rUBtIC ALLOUfi?AMID
City Council
City of Moorpark
Moorpark,California
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 the financial statements of the governmental activities, each major fund and the aggregate
remaining fund information of the City of Moorpark,California(the"City")as of and for the year ended June
30, 2011, which collectively comprise the City's basic financial statements, and have issued our report
thereon dated December 13,2011. 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.
Internal Control Over Financial Reporting
In planning and performing our audit,we considered the City's internal control over financial reporting as a
basis for designing our auditing procedures 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 over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
City's internal control over financial reporting.
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.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over financial
reporting that might be deficiencies,significant deficiencies,or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider to be material weaknesses,as defined
above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of 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
Richard A. Teaman, cPA• Greg W. Fankhanel, cPA • David M. Ramirez., CPA a Javier I-i. Carrillo, cPA
4201 Brockton Ave. Suite 100, Riverside CA 92501 • 951.274.9500 • 951.274.7828 t— • www.trscpas.com
385
disclosed no instances of noncompliance or other matters that are required to be reported under Government
Auditing Standards.
We noted certain matters that we reported to Management of the City of Moorpark in a separate letter dated
December 13,2011.
This report is intended solely for the information and use of the City Council, management, others within the
entity, federal awarding agencies and pass-through entities and is not intended to be and should not be used
by anyone other than these specified parties.
December 13,2011
2
386
.. CJTEAMAN, RAMIREZ&SMITH,INC. ATTACHMENT 5
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT ACCOUNTANT'S REPORT ON AGREED-UPON PROCEDURES
APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
City Council
City of Moorpark
Moorpark,California
We have performed the procedures enumerated below to the accompanying Appropriations Limit worksheet of the City of
Moorpark, California, for the year ended June 30, 2011. These procedures, which were agreed to by the City of Moorpark,
California and the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to
the Appropriations Limitation Prescribed by Article XIIIB of the California Constitution), were performed solely to assist the
City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The City of Moorpark'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.
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 appropriations limit for the base year, as defined by the League
publication entitled Article XIIIB of the California Constitution.
This report is intended solely for the use of the City Council and management of the City of Moorpark, California 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.
December 13,2011
Richard A. Teaman, cPA • Greg W. Fankhanel, CPA • David M. Ramirez, cPA• Javier H. Carrillo, cPA 387
4201 Brockton Ave. Suite 100, Riverside CA 92501 • 951.274.9500 • 951.274.7828 FAX• www_trscpas.com
CITY OF MOORPARK
APPROPRIATIONS LIMIT COMPUTATION
2010-2011
2010-2011
Per Capita Cost of Living Change -2.54%
Population Change
City Population Growth 1.42%
Per Capita Cost of Living Converted to a Ratio .9746
Population Change Converted to a Ratio 1.0142
Calculation of Growth Factor .98843932
2009—2010 Appropriations Limit $ 26,198,908
2010—2011 Appropriations Limit
($26,198,908 X.98843932) $ 25,896,031
388
ATTACHMENT 6
07RSTEAMAN,RAMIREZ&SMITH,INC.
CERTIFIED PUBLIC ACCOUNTANTS
December 13,2011
City Council
City of Moorpark
Moorpark,California
We have audited the financial statements of the governmental activities, each major fund, and the aggregate
remaining fund information of the City of Moorpark (City) for the year ended June 30, 2011. Professional
standards require that we provide you with information about our responsibilities under generally accepted auditing
standards and Government 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 3, 2011. Professional
standards also require that we communicate to you the following information related to our audit.
Si=ificant Audit Findings
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 13 to the financial
statements, the City changed accounting policies related to Fund Balance Reporting and Governmental Fund Type
Definitions by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 54, Fund
Balance Reporting and Governmental Fund Type Definitions, in the 2010-11 fiscal year. The application of existing
policies was not changed during the year ended June 30, 2011. 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 financial statements were:
Management's estimates of the useful lives for capital assets are based on the expectation that the capital
assets will be of use to the City over the specified useful lives. We evaluated the key factors and
assumptions used to develop the estimates in determining that they are reasonable in relation to the
financial statements taken as whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement
users. The most sensitive disclosure(s)affecting the financial statements was(were):
The disclosure of accumulated depreciation in Note 5 to the financial statements is based on estimated
useful lives which could differ from actual useful lives of each capitalized item.
Richard A. Teaman, cPA • Greg W. Fankhanel, CPA • David M. Ramirez, CPA • Javier H. Carrillo, CPA 389
4201 Brockton Ave. Suite 100, Riverside CA 92501 • 951.274.9500 • 951.274.7828 FAX • www.trscpas.com
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,other
than those that are 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 the financial statements taken as a
whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as 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 6,2011.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a"second opinion"on certain situations. If a consultation involves application of an accounting
principle to the City'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 City'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 Information in Documents Containing Audited Financial Statements
With respect to the supplementary information accompanying the financial statements, we made certain inquiries
of management and evaluated the form, content, and methods of preparing the information to determine that the
information complies with accounting principles generally accepted in the United States of America, the method
of preparing it has not changed from the prior period, and the information is appropriate and complete in relation
390
to our audit of the financial statements. We compared and reconciled the supplementary information to the
underlying accounting records used to prepare the financial statements or to the financial statements themselves.
This information is intended solely for the use of the City 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,
391