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HomeMy WebLinkAboutAGENDA REPORT 2011 0105 CC REG ITEM 10FMOORPARK CITY COUNCIL AGENDA REPORT TO: The Honorable City Council FROM: Ron Ahlers, Finance Director 6W DATE: December 28, 2010 (CC Meeting of January 5, 2011) ITEM 10.F. ,, , }: -W AVW SUBJECT: Consider Annual Financial Statements and Other Audit Reports for Fiscal Year Ended June 30, 2010 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, 2010 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, 2010, 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, 2009. 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. • • Honorable City Council January 5, 2011 Page 2 DISCUSSION CAFR Attached for your approval are the annual financial statements for the year ended June 30, 2010 for the City of Moorpark. The financial statements are comprehensive and include all of the fund types in the City. The City Council engaged an independent certified public accounting firm, 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, 2010 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 2009/10 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 14) 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 positive increase in net assets of $1.3 million was reported in fiscal year 2009/10 (page 15). 100 Honorable City Council January 5, 2011 Page 3 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 24. All of these statements are followed by the Notes to the Financial Statements. The Required Supplementary Information begins at page 65 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 December 30, 2010 the CAFR was placed on the City's website: http://ci.moorpark.ca.us General Fund Financial Status For fiscal year ended June 30, 2010, the General Fund unreserved fund balance totaled $3.0 million, which equates to approximately 27% of operating expenses. Per Council policy the City transferred out $1,838,000 to the Special Projects Fund this past year. This represents current fiscal year surplus of $1,632,000 and prior year residual surplus of $206,000. In May 2010 we estimated the General Fund surplus to be $693,000. The final surplus is $1,632,000, which is $939,000 greater than our estimate in May. 101 Honorable City Council January 5, 2011 Page 4 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 — A new purchasing policy shall be written and distributed to the employees by March 31, 2011. (2) New Accounting Standard — During fiscal year 2010/11 the Finance staff shall implement GASB 54 by reclassifying fund types and fund balance. This will be implemented by June 30, 2011. (3) Fraud Prevention and Detection Program — The City will research a fraud prevention, "tip hotline ", for use by employees, vendors and citizens. Expected implementation date is June 30, 2011. 102 Honorable City Council January 5, 2011 Page 5 Single Audit Report - (No report required this year) The City was not required to conduct a single audit this year because the City did not meet the $500,000 federal grant expenditure threshold. The Single Audit is specifically designed to meet the needs of all federal grantor agencies from which the City receives funds. 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, 2010. 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, 2010. 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, 2010. STAFF RECOMMENDATION (Roll Call Vote) Accept the Comprehensive Annual Financial Report (CAFR), Management Letter, Memo stating that a Single Audit was not required this year, 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 and receive and file this report. Attachments: 1. City of Moorpark CAFR for year ended June 30, 2010 2. Management Letter 3. Memo stating that a Single Audit was not required this year 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 103 CITY OF MOORPARK, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2010 Prepared By: Ron Ahlers, Finance Director Irmma Lumbad, Finance & Accounting Manager Debbie Burdorf, Accountant I ATTACHMENT 1 104 City of Moorpark Comprehensive Annual Financial Report Year Ended June 30, 2010 TABLE OF CONTENTS PAGE 1. INTRODUCTORY SECTION Letter of Transmittal i -Vi Directory of Officials vii OrpemariimW Chan viii Certificate of Achievement of Excellence in Financial Reporting ix H. FINANCIAL SECTION Independent Auditors' Report 1 - 2 Management Discussion & Analysis 3-13 Basic Financial Statements: Government -wide Financial Statements Statement of Net Assets 14 Statement of Activities 15 Fund Financial Statements Balance Sheet - Governmental Funds 16-18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 19 Statement of Revenues, Expenditures and Changes in Fund Balances - 20-22 Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes 68 in Fund Balances of Governmental Funds to the Statement of Activities 23 Statement of Fiduciary Assets and Liabilities 24 Notes to Financial Statements 25-64 Required Supplementary Informationt Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 65-67 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Street and Traffic Safety Development Special Revenue Fund 68 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Community Development Special Revenue Fund 69-70 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual — Assessment District Special Revenue Fund 71-72 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Endowment Special Revenue Fund 73 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Park/Public Facilities Special Revenue Fund 74-75 105 City of Moorpark Comprehensive Annual Financial Report Year Ended June 30, 2010 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 76_7.77 Schedule of Funding Progress for N RHP 78 Notes to Required Supplementary Information 79 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 80 Redevelopment Agency Capital Projects Fund 81 Redevelopment Agency Debt Service Fund 82 Non -Major Governmental Funds 83-84 Combining Balance Sheet 85-88 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 89-92 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual: Library Services Special Revenue Fund 93 Traffic Safety Special Revenue Fund 94 Affordable Housing Special Revenue Fund 95 Los Angeles Area of Contribution Special Revenue Fund 96 Tierra Rejada/Spring A.O.0 Special Revenue Fund 97 Cassey /Gabbert Area of Contribution Special Revenue Fund 98 Freemont Storm Drain A.O.0 Special Revenue Fund 99 State and Federal Assistance Special Revenue Fund 100 State Gas Tax Special Revenue Fund 101 Prop 1 B Local Streets and Roads Special Revenue Fund 102 Art in Public Places Special Revenue Fund 103 Prop 1B Safety and Security Special Revenue Fund 104 Low and Moderate Income Housing Special Revenue Fund 105 Local Transportation Transit Special Revenue Fund 106 Solid Waste Special Revenue Fund 107 Capital Projects Fund 108 City Hall Building Capital Projects Fund 109 Equipment Replacement Capital Projects Fund 110 Statement of Changes in Net Assets - Agency Funds 111 M. STATISTICAL SECTION Net Assets by Component - Last Eight Fiscal Years 112 - 113 Changes in Net Assets Governmental Activities - Last Eight Fiscal Years 114-115 Fund Balances of Governmental Funds - Last Eight Fiscal Years 116-117 Changes in Fund Balances of Governmental Funds - Last Eight Fiscal Years 118-119 106 City of Moorpark Comprehensive Annual Financial Report Year Ended June 30, 2010 TABLE OF CONTENTS - Continued 107 PAGE III. STATISTICAL SECTION - Continued Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 120 Direct and-Overlappmg Property Tax RAtes - Last Ten Fiscal Years 121 Principal Property Tax Payers - Current Year and Nine Years Ago 122 Property Tax Levies and Collections - Last Ten Fiscal Years 123 Ratios of Outstanding Debt by Typo- Last Ten Fiscal Yeats 124 Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years 125 Direct and Overlapping Debt 126 Legal Debt Margin Information- Last Ten Fiscal Years 127-128 Pledged Revenue Coverage - Last Ten Fiscal Years 129 Demographic and Economic Statistics - Last Ten Calendar Years 130 Principal Employers- Current and Ten Calendar Years Ago 131 Full-Time and Part -Time City Employees by Function - Last Ten Fiscal Years 132 Operating Indicators by Function - Last Ten Fiscal Years 133 Capital Asset Statistics by Function- Last Ten Fiscal Years 134 107 C ity f�5Yloorpark 799 Moorpark Avenue, Moorpark, Califomia 93021 (805)SIT-6200 tax(805)532-2545 December 7, 2010 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, 2010. 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 JANICE S. PARVIN ROSEANN MIKOS KEITH F. MILLHOUSE DAVID POLLOCK MARK VAN DAM Mayor Mayor Pro Tem Councilmember Councilmember Counalmember 1• section with detail information to be in compliance with GASB No. 44 requirements for fiscal year 2009/10. 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 1983 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 project 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 n 109 engineering, crossing guard and administrative management services with city employees. 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 37,000 (source: California Department of Finance). Moorpark is recognized for having the lowest number of serious crimes committed in Ventura County and is one of the safest cities of its size in the United States. BUDGETARY CONTROL The City prepares an annual budget consistent with Generally Accepted Accounting Principles (GAAP) for all governmental funds on a modified accrual basis where revenues are recognized when they become measurable and available to finance expenditures of the current period. Expenditures are recorded when the goods or services are received and the liabilities are incurred. Department directors are responsible, not only to accomplish his /her particular goals within each program, but also to monitor budget allocations consistent to the funding levels adopted by the City Council prior to July 1 of the budget year. In addition, the City maintains budgetary control through the use of an encumbrance accounting system. As purchase orders are issued, corresponding amounts are encumbered for later payments to ensure that budget amounts are not over -spent INTERNAL CONTROLS The City's management is responsible for developing and establishing an internal control structure to ensure that the assets of the government are protected from loss, theft, misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived; and 2) the valuation of the costs and benefits requires estimates and judgments by management. iii 110 ANNUAL AUDIT An independent accounting firm has performed the annual audit of the City's financial statements for the fiscal year ended June 30, 2010. 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 111 in 1990 to further increase the accountability of local government in adopting their limits by requiring the governing body to annually adopt, by resolution, an appropriation limit for the upcoming fiscal year. The appropriation limit and the City's appropriations subject to the limit for fiscal year 2009/10 amounted to $26,198,908 and $13,748,165, 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, 2010, approximately $51.7 million (City & Agency combined) was invested with the State Treasurer's Local Agency Investment Fund (LAIF); approximately $49.3 million in the Ventura County Pool; and $0.7 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 infrastructures reporting, whereby depreciation expense and accumulated depreciation have been recorded. Capital iv 111 assets for the fiscal year ended June 30, 2010 have a net ending balance of $151.1 million. LONG -TERM LIABILITIES /BONDED LIABILITIES At June 30, 2010, 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) and $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 Atilocation Bonds outstanding in the amounts of $5.5 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 Govemment Finance Offtcem Associatm" 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, 2009. 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. v 112 ACKNOWLEDGEMENT We would like to express appreciation to fill 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.cl. moorpark.ca. us. Respectfully submitted, STEVEN KUENY CITY MANAGER Vi RON AHLERS FINANCE DIRECTOR 113 City of Moorpark Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2010 DIRECTORY OF CITY OFFICIALS CITY COUNCIL Janice S. Parvin, Mayor Roseann Mikos, Mayor Pro Tem David Pollock, Councilmember Keith F. Millhouse, Councilmember Mark Van Dam, Councilmember CITY MANAGEMENT STAFF Steven Kueny, City Manager Hugh Riley, Assistant City Manager Ron Ahlers, Finance Director David Bobardt, Community Development Director Deborah Traffenstedt, Administrative Services Director Vacant, City Engineer /Public Works Director Vacant, Parks & Recreation Director Vii 114 Arts Commission Parks and Recreation Commission Planning Commission Community Development Department .Building and Safety .Business Registration .CDBG .Code Compliance .Film Permits .Planning .Vendor Permits Ln CITY OF MOORPARK ORGANIZATION CHART Honorable City Council Police Services (Contract) Administrative Services /City Clerk Department .City Clerk .Human Resources .Information Systems .Risk Management City Manager Parks, Recreation and Community Services Department .Active Adult Center .Animal Regulation/Vector Control .Art in Public Places Library Parks /Landscape /Facilities/ Maintenance Recreation .Solid Waste viii City Attorney (Contract) nt City Manager .Emergency Services .Grants .Intergovernmental Community and Legislative Relations .Public Facility Capital Projects .Public Information /Cable TV .Redevelopment Economic Development Property Management Housing City Engineer /Public /orks Departmel .Assessment District Street Lighting .Capital Projects .Crossing Guards .Engineering . NPDES .Parking Enforcement .Street Maintenance .Transit Finance Department .Cash Management .Central Services .Finance and Accounting Fixed Assets Management .Purchasing Certificate of Achievement for Excellence in- Financial Reporting Presented to City of- Moorpark California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2009 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 coinprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. r-- ,.v President Executive Director ix 116 i111AAAtd, FiP 91 t 2 A C 0 V I. INC. crIr�r�tI ru�r�: �ccou.r.%+s Independent Auditors' Report The Honorable City Council The City of Moorpark, California We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Moorpark, California (City), as of and for the year ended June 30, 2010, 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, 2010, 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. In accordance with Government Auditing Standards, we have also issued our report dated December 7, 2010 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 the 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. The management's discussion and analysis on pages 3 through 13, the budgetary comparison information on pages 65 through 77, and the schedule of funding progress for NiRHP are not a required part of the basic financial statements, but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Richard A. Teaman. CPA a Greg W. Fankhanei. CPA a David M Ramirez. CFA a Javier H. Carrillo, CPA 117 4201 Brockton Ave. Suite 100. Riverside CA 92801 a 951.274.9500 a 951.274.7828 rnx a www.tracpas con+ f.trw. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, supplementary information section, and statistical section, as fisted in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information section has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. December 7, 2010 118 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2010 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, 2010. 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 2009110 by $248,428,562 (net assets). Of this amount, $17,761,703 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. • The City's total net assets increased by $1,302,959 during the current fiscal year. The Statement of Net Assets is presented on page 15. • As of June 30, 2010, the City's governmental funds (General Fund, Special Revenue Funds, Debt Service Funds, and Capital Pmjects Funds) reported combined ending fund balances of $132,781,925, a decrease of $2,826,257, from the prior year. • At the end of the current fiscal year, unreserved fund balanco for the General Fund was $2,662,713. • The City's total Long — Term Liabilities decreased by $491,562 or 1.6% during the current fiscal year. The decrease is attributable to the difference between employee compensated absences addition; the fiscal years regularly scheduled debt service payments for the 1999, 2001 and 2006 Tax Allocation Bonds; and the decrease in pension related debt. 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 fmances, 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. 119 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2010 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. 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 (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 14 and 15 of this report. Fund Financial Statements. A fiord 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 fiords 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 finals and governmental activities. The City maintains a variety of individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Street and Traffic Safety, 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 fire 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 120 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2010 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 24 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 26 -64 of this report. GOVERNMIENT -WEDC 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 $248.4 million at the close of the current fiscal year. Tht City's sset assets inNestod i4 capital assets, not of rtWa .debt Teflects a positive $141.1 million. As shown on Table 1, the largest portion of the City's net assets (57 %) is its investment in capital assets. 113e City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. An additional portion of the City's net assets (36 %) 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 (7 %) 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, 2010, 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. 121 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2010 Table 1 Net Assets Governmental Activities As of Jane 30, 2010 and 2009 2010 2009 Assets: Current and other assets $ 143,511,765 $ 145,680,876 Capital assets 141,095,551 130,581,499 Total Assets 284,607,316 276,262,375 Liabilities: Long -term debt outstanding 29,390,677 29,942,239 Other liabilities 6,788,077 6,646,441 Total Liabilities 36,178,754 36,588,680 Net Assets: Invested in capital assets, net of related debt 141,095,551 130,581,499 Restricted 89,571,308 94,878,693 Unrestricted 17,761,703 14,213,503 Total Net Assets S 248,428,562 S 239,673,695 The City's net assets increased by S 1.3 million during the current fiscal year. 6 122 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2010 Table 2 Clianges in Net Assets Governmental Activities As of June 30, 2010 and 2009 Expenses General government 2010 2009 Revenues 7,016,015 7,035,384 Program Revenues: 13,589,878 18,170,325 Charges for services $ 4,148,970 S 4,589,249 Operating contributions and grants 4,128,842 6,172,315 Capital contributions and grants 1,970,931 3,326,778 General Revenues: Increase in net assets 1,302,959 Property taxes 7,449,063 7,802,643 Tax increment 6,864,777 7,054,432 Franchise taxes 1,171,825 1,171,556 Sales taxes 2,382,010 2,329,522 Sales tax in lieu 588,635 849,227 Motor vehicle in lieu tax 109,136 125,307 Investment income 853,074 2,875,649 Other 283,372 386,040 Special Item -- County Settlement - 1,000,000 Total Revenues 29,950,635 37,682,718 Expenses General government 1,603,279 2,041,596 Public safety 7,016,015 7,035,384 Public services 13,589,878 18,170,325 Parks and recreation 4,934,002 4,470,524 Interest on long -term debt 1,504,502 1,616,843 Total Expenses 28,647,676 33,334,672 Increase in net assets 1,302,959 4,348,046 Net assets - July 1, 239,673,695 235,325,649 Prior Period Adjustment 7,451,908 - Net assets - June 30, $ 248,428,562 S 239,673,695 7 123 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2010 Program Revenues Capital Charges for contributions and services grants 19' 40% Sales taxes 12% Franchise taxes 6% Operating contributions and grants 40% Motor vehicle in lieu tax Investment income 1% 4% Tax increment 35% Property taxes 38% 124 CrrY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2010 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 balances of spendable resources. Such information is useful in assessing the City's financial requirements. In particular unreserved frond balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City's governmental funds reported total fund balances of $132,781,925. This is a decrease of $2,426,110 in comparison with the prior year. Approximately $94.2 million or 71 % of the fund balances constitutes unreserved find balance, which is available to meet the City's current and future needs. The remainder of fiord balance is reserved to indicate that it is not available for new spending because it has been committed to a variety of restricted purposes. General Fund The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the total fund balance of the General Fund was $3.0 million which is a decrease of $0.2 million or 6% from the 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 23% of total General Fund expenditures and transfers out. This is a healthy reserve. Key factors for revenues and expenses when compared to fiscal year 2008 -09 are as follows: • The City's share of property taxes increased by approximately $121,000 or 2 %. • Sales tax revenues also improved with an increase of approximately $53,000 or 2 %. This is quite remarkable considering the economic downturn. • The Sales Tax Compensation or "triple flip" decreased $260,000 or 31 %. This revenue is calculated by the State each year and reflects the economic downturn in the State of California as a whole. • Interest earnings decreased by approximately $415,000 or 57% in response to declining rates in the market_ • Motor vehicle in lieu decreased by S 16,000 or 13% due to the economic downturn. • Expenditures and transfers out ended the year approximately S 1.4 million less than the prior year figure as a result of prudent spending by staff and capital projects that have not yet started. Street and Traffic Safety Fund (Includes the Traffic System Management Fund, City -Wide Traffic Mitigation Fond and Crossing Guard Fund) The fund balance of the Street and Traffic Safety Fund increased by $0.3 million from the prior year, primarily due to the receipt of development fees for various construction projects. Community Development Fund The fund balance of the Community Development Fund increased by $49,000 from the prior year as a result of increased transfers from the General Fund to support this operation. 125 CM OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS NNE 30, 2010 Assessment District Fund The fund balance of the Assessment District Fund increased by 534,000 from the prior year due to transfers from the General Fund and the Gas Tax Fund of $1.3 million. Endowment Fund The fund balance of the Endowment Fund increased by $384,000, due to deferring capital outlay expenditures. Park/Public Facilities Fund (Includes ten (10) various development fee related funds) The fund balance of the Park Improvement Fund decreased by S1.7 million primarily due to increased capital expenditures, primarily for the new Skate Park and Poindexter Park expansion. MRA Operating Fund The fund balance of the MRA Operating Fund decreased by $2.8 million from the prior year due to a payment to the State of California for the Supplemental Educational Revenue Augmentation Fund (SERAF) of $1,925,000. Police Facilities Fee Fund The fund balance of the Police Facilities Fund increased by $0.1 million from the prior year. 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. The expenditures of $55,000 ropresent payments to Pardee homes for reimbursement of improvements and grading in the district. 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 limlud to acting as an agent for the assessed property owners and bondholders. Redevelopment Agency Capital Projects Fund The fund balance of the Redevelopment Agency Capital Projects Fund decreased by $713,000 from the previous year mainly due to capital outlay expenditures. Special Projects Capital Projects Fund The fund balance of the Special Projects Capital Projects Fund increased by $1.8 million from the previous year solely due to a transfer from the General Fund. 10 126 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2010 Redevelopment Agency Debt Service Fund The fund balance of the Redevelopment Agency Debt Service Fund increased by $33,000 due to investment earnings. Non -Major Governmental Funds The fund balance of all other Non -Major Governmental Funds decreased by $21,000 from the previous fiscal year. General Fund Budgetary Highlights The City adopts annual appropriated operating budgets for its governmental funds (General Fund, Special Revenue Funds, Debt Service Funds, and Capital Project Funds (except for the Moorpark Highlands Improvement Fund as these sources have been designated for specific projects in accordance with the Bond's Official Statement }) and reports the results of operation on a budget comparison basis. In preparing its budgets, the City attempts to estimate its revenues using realistic, but conservative, methods so as to budget its expenditure appropriations and activities in a prudent manner. As a result, the City Council adopts budget adjustments during the course of the fiscal year to reflect both changed priorities and availability of additional revenues to allow for expansion of existing programs. During the course of the year, the City Council amended the originally adopted budget to re- appropriate prior year approved projects and expenditures, as well as approving many other adjustments for the current year. The results of the General Fund for the year ended June 30, 2010, were right in line with the budget. Revenues were $250,000 greater than the budget and expenditures ended the year tinder budget by $1.3 million. CAPITAL ASSET AND LONG -TERM LIABILITTES Capital Assets. The City's investment in capital assets as of June 30, 2010, amounted to S141.1 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 $10.5 million or 8.1 %. Land shows the largest increase in 2010 at $7.7 million. This year the City recorded the Mammoth Highlands Park as a donation from the developer. 127 CTTY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2010 Table 3 Capital Assets (net of depreciation) Governmental Activities As of June 30, 2010 and 2009 2010 2009 Land S 36,414,011 $ 28,719,337 Construction in Progress 9,481,646 9,903,188 Buildings and improvements 29,632,142 25,393,673 Machinery and equipment 1,688,603 1,982,243 Infrastructure 63,879,149 64,583,058 Total $ 141,095,551 $ 130,581,499 As a result of the implementation of GASB No. 34, the City has continued to account for infrastructure assets on its financial statements. 'Ile 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 infomiation on the City's capital assets can be found in Note 5 on pages 45-46 of this report. Long -term Liabilities At the end of the current fiscal year, the City's long -term liability outstanding is $30.4 million. This is comprised of $28.4 million in tax allocation bonded indebtedness, $0.7 million in employee compensated absences payable and S 1.3 million for pension related debt. Table 4 Outstanding Long -Term Liabilities Governmental Activities As of June 30, 2010 and 2009 Tax Allocation Bonds (issued by the Agency) Employee Compensated Absences Pension Related Debt Total 12 2010 2009 S 28,422,563 S 28,906,716 673,139 642,256 1,319,064 1,357,356 $ 30,414,766 S 30,906,328 128 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2010 The City's total liabilities decreased by $0.5 million or 1.6% during the current fiscal year. The decrease is attributable to the normal pay down of principal on the outstanding debt. Additional information on the City's long -term liabilities can be found in Note 6 on pages 47 thru 51 of the basic financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The State's "Triple Flip" payment plan remains in effect as the State attempts to repay the 515.0 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. In addition, the State's budget for Fiscal Year 2010 /11 and 2011/12 currently show a $28 billion shortfall. The State has not adopted a strategy to reduce this projected deficit. The City has additional protections from the State taking our monetary resources thanks to the voter passage of Proposition 22 in November 2010. The City anticipates the State taking away property tax revenue from the Agency in the amount of $396,000. General purpose revenues such as property tax and sales tax are anticipated to decrease in fiscal year 2010/11. The sales tax decrease is a reflection of the economic recession. Additionally, the City took into consideration the following factors in preparing the budget for fiscal year 2010/11: • Interest income will show a decrease in response to declining interest rates. • Slight increase in PERS retirement cost from 10.990% to 11.040% effective July 1, 2010. • Projections indicate our cost for general liability and workers compensation insurance will both decrease for fiscal year 2010/11 when compared to fiscal year 2009/10 actual payments. A priority of the City is to maintain a high quality of services while adopting a balanced budget. As in prior years, the fiscal year 2010/11 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 neod additional financial information, please contact the Finance Department at City Hall, 799 Moorpark Avenue, Moorpark,, CA 93021, or at www.ci.moorpark.ca.us. 13 129 City of Moorpark Statement of Net Assets June 30, 2010 LIABILITIES Accounts Payable and Accrued Liabilities Governmental Interest Payable Activities ASSETS 196,822 Cash and Investments S 100,742,441 Receivables: 1,024,089 Taxes 726,511 Accounts 610,414 Interest 1,489,596 Notes and Loans 3,589,400 Prepaid Items 337,286 Property Held for Resale/Development 19,428,853 Restricted Cash and Investments 16,140,661 Debt Issuance Costs 446,603 Capital Assets: Non - Depreciable: Land 36,414,011 Construction in Progress 9,481,646 Depreciable, Net of Accumulated Depreciation: Buildings and Improvements 29,632,142 Machinery and Equipment 1,688,603 Infrastructure 63,879,149 Total Assets 284,607,316 LIABILITIES Accounts Payable and Accrued Liabilities 5,226,141 Interest Payable 341,025 Unearned Revenue 196,822 Noncurrent Liabilities: Due Within One Year 1,024,089 Due in More Than One Year 29,390,677 Total Liabilities 36,178,754 NET ASSETS Invested in Capital Assets 141,095,551 Restricted for Public Services 77,819,976 Recreation Services 3,033,766 Public Safety 612,108 Low/Moderate Income Housing 8,105,458 Unrestricted 17,761,703 Total Net Assets S 248,428,562 The accompanying notes are an integral part of this statement 14 130 City of Moorpark Statement of Activities Year Ended June 30, 2010 The accompanying notes are an integral part of this statement 15 131 Program Revenues Charges Operating Capital Net for Grants and Grants and Governmental Function&Trogtams Expenses Services Contributions Contributions Activities Primary Government: Governmental Activities: General Government S 1,603,279 $ 258,431 $ 50,323 $ $ (1,294,525) Public Safety 7,016,015 477,305 234,972 (6,303,738) Public Services 13,589,878 2,769,641 1,699,628 1,970,931 (7,149,678) Parka and Recreation 4,934,002 643,593 2,143,919 (2,146,490) Interest on Long -Term Debt 1,504,502 (1,504,502) Total Governmental Activities $ 28,647,676 S 4,148,970 S 4,128,842 S 1,970,931 (18,398,933) General Revenues: Taxes: Property Tax, Levied for General Purpose 7,449,063 Property Tax. Redevelopment Agency Tax Increment 6,864,777 Franchise Taxes 1,171,825 Sales Tax 2,382,010 Sales Tax In -Lieu 588,635 Motor Vehicle In -Lieu, unrestricted 109,136 Investment Income 853,074 Other 283,372 Total General Revenues 19,701,892 Change in Net Assets 1,302,959 Net Assets - Beginning of Year 239,673,695 Prior Period Adjustment 7,451,908 Net Assets - End of Year $248,428,562 The accompanying notes are an integral part of this statement 15 131 ASSETS Cash and Investments Restricted Cash and Investments Receivables: Taxes Accounts Interest Notes and Loans Due From Other Funds Advances to Other Funds Prepaid Items Property Held for Resale/Development Total Assets LUBELI TWS AND FUND BALANCES Liabilities: Accounts Payable and Accrued Liabilities Due to Other Funds Advances from Other Funds Deferred Revenue Total Liabilities Fund Balances: Reserved for. Capital Projects Debt Service Property Held for Resale/Development Advances Prepaid Items Unreserved, Reported In: General Fund Special Revenue Funds Capital Projects Funds Debt Service Funds Total Fund Balances Total Liabilities and Fund Balances City of Moorpark Balance Sheet Governmental Funds June 30, 2010 Special Revenue Street and Community Assessment General Traffic Safety Development District $ 2,433,246 $ 19,969,837 S 191,618 S 6,702,057 708,818 160,507 208,098 147,902 337,286 17,693 6,131 43,285 $ 3,995,857 =L ]?,969,837 $ 197,749 S 6,763,035 S 995,858 S 27,259 $ 148,226 $ 282,564 17,693 995,858 27,259 148,226 300,257 337,286 2,662,713 19,942,578 49,523 6,462,778 2,999,999 19,942,578 49,523 6,462,778 $ 3,995,857 $ ]9,969,837 $ 197,749 $ 6,763,035 .� The accompanying notes are an integral part of this statement 16 132 Special Revenue Capital Projects Moorpark Parks/Public MRA Police Highlands Rodevelopment Endowment Facilities Operating Facilities Fee Improvement Agency $ 3,228,417 $ 2,604,075 S 4,115,164 $ 9,171 800,000 1,933,495 20,715 1,263,869 1,704,786 972 $ $ 11,043,917 13,961,736 17,629 350,000 7,142,622 4,398,806 S 5,961,912 $ 2,613,246 S 14,247,156 $ 972 $ 13,961,736 $ 15,810,352 S $ 128,617 S 3,045,569 S 61,233 1,000,000 1,933,495 800,000 2,95 7,967 800,000 1,128,617 6,064,769 1,933,495 7,142,622 1,933,495 3,228,417 1,484,629 1,039,765 (1,932,523) S S 2,121 33,752 13,961,736 35,873 4,398,806 11 ,375,673 5,161,912 1,484,629 8,182,387 (1,932,523) 13,961,736 15,774,479 $ 5,961,912 $$ 2,6246 S 14,247,156 S 972 $ 13,961,736 $ 15,810,352 Continued Ile accompanying notes arc an integral part of this statement 17 133 City of Moorpark Balance Sheet Governmental Funds - Continued June 30, 2010 Capital Projocts Debt Service Non -Major Special Redevelopment Govempmental Projects Agency Funds ASSETS Total Governmental Funds Cash and Investments $ 24,292,789 $ $ 26,160,349 S 100,742,441 Restricted Cash and Investments 2,178,925 16,140,661 Receivables: Taxes 726,511 Accounts 370,605 610,414 Interest 1,489,596 Notes and Loans 1,084,614 3,589,400 Due From Other Funds 166,564 664,466 Advances to Other Funds 1,0001000 2,933,495 Prepaid Items 337,286 Property Held for Resale/Development 7,887,425 19,428,853 Total Assets $ 25,292,789 $ 2,178,925 $ 35,669,557 S 146,663,123 LIABEUMS AND VMiD BALANCES Liabilities: Accounts Payable and Accrued Liabilities $ S S 595,927 S 5,226,141 Due to Other Funds 569,481 664,466 Advances from Other Funds 2,933,495 Deferred Revenue 1,281,436 5,057,096 Total Liabilities - - 2,446,844 13,881,198 Fund Balances: Reserved for: Capital Projects 13,961,736 Debt Service 1,884,723 1,884,723 Property Held for Resale/Development 7,887,425 19,428,853 Advances 1,000,000 2,933,495 Prepaid Items 337,286 Unreserved, Reported In: General Fund 2,662,713 Special Revenue Funds 20,964,948 53,172,638 Capital Projects Funds 24,292,789 4,370,340 38,106,279 Debt Service Funds 294,202 294,202 Total Fund Balances 25,292,789 2,178,925 33,222,713 132,781,925 Total Liabilities and Fund Balances S 25,292,789 $ 2,178,925 $ 35,669,557 S 146,663,123 The accompanying notes arc an integral part of this statement. 18 134 City of Moorpark Reconciliation of the Governmental Funds - Balance Sheet to the Statement of Net Assets June 30, 2010 Fund balances of governmental funds $ 132,781,925 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 governmernal funds. 141,095,551 Long -term notes and loans receivable are not current financial resources and, therefore, are deferred in the governmental funds. 3,589,400 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. 1,270,874 Interest expenditures are recognized when due, and therefore, interest payable is not recorded in the governmental funds. (341,025) Long -term liabilities are not due and payable in the current period and are not reported in the funds. Compensated Absences (673,139) Tax Allocation Bonds (28,710,000) Unamortized Discount 287,437 Pension Related Debt (1,319,064) Issuance costs net of accumulated amortization were recorded as expenditures in the governmental funds. 446,603 Net assets of governmental activities $ 248,428,562 the acmmpan*g notes are an integW pert of this statement. 19 135 City of Moorpark Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended June 30, 2010 REVENUES Taxes Licenses and Permits Fines and Forfeitures Use of Money and Property Charges for Services Intergovernmental Maintenance Assessments Other Revenue Total Revenues EXPENDT17 URES Current: General Government Public Safety Public Services Parks and Recreation Capital Outlay Debt Service: Principal Interest Special Revenue 1,497,916 6,076,995 443,850 77,649 33,277 1,990,225 1,486,374 2,960,426 99,215 345,914 68,347 Total Expenditures 9,238,149 379,191 1,990,225 3,472,623 Excess (Deficiency) of Revenues over Expenditures 3,471,397 300,785 (837,419) (1,254,148) OTHER FINANCING SOURCES (USES) Transfer In 136,398 886,942 1,288,301 Transfer Out (3,813,625) (18,754) Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Prior Period Adjustment Fund Balances, End of Year (3,677,227) (18,754) 886,942 1,288,301 (205,830) 282,031 49,523 34,153 3,205,829 19,660,547 - 6,428,625 S 2,999,999 S 19,942,578 S 49,523 S 6,462,778 'True accompanying notes are an intcgral pan of this statement 20 136 Street and Community Assessment General Traffic Safety Development District S 10,794,266 $ S S 146,915 451,455 195,161 15,457 492,505 247,087 136 84,380 784,383 432,459 610,657 6,775 162,527 1,887,286 133,789 430 75,101 240,034 12,709,546 679,976 1,152,806 2,218,475 1,497,916 6,076,995 443,850 77,649 33,277 1,990,225 1,486,374 2,960,426 99,215 345,914 68,347 Total Expenditures 9,238,149 379,191 1,990,225 3,472,623 Excess (Deficiency) of Revenues over Expenditures 3,471,397 300,785 (837,419) (1,254,148) OTHER FINANCING SOURCES (USES) Transfer In 136,398 886,942 1,288,301 Transfer Out (3,813,625) (18,754) Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Prior Period Adjustment Fund Balances, End of Year (3,677,227) (18,754) 886,942 1,288,301 (205,830) 282,031 49,523 34,153 3,205,829 19,660,547 - 6,428,625 S 2,999,999 S 19,942,578 S 49,523 S 6,462,778 'True accompanying notes are an intcgral pan of this statement 20 136 Special Revenue Capital Projects Moorpark Parks/Public MRA Police Highlands Redevelopment Endowment Facilities Operating Facilities Fee Improvement Agency $ $ S 3,771,651 $ S S 110,971 38,275 100,607 1,585 85,355 327,462 67,716 89,495 63,145 95 68,115 438,433 195,581 3,940,373 63,145 1,585 85,355 6,282 6,590,521 6,600 54,187 1,911,627 4,219 76,500 54,187 1,924,509 6,671,240 384,246 (1,728,928) (2,730,867) 1,860,440 (2,760) (1 ,921,660) 8,361 54,775 759,299 - 54,775 767,660 63,145 (53,190) (682,305) 1,857,500 (1,887,728) - (2,760) (61,220) - - (30,228) 384,246 (1,731,688) (2,792,087) 63,145 (53,190) (712,533) 4,777,666 3,216,317 10,974,474 (1,995,668) 14,014,926 16,288,672 198,340 $ 5,161,912 S 1,484,629 S 8,182,387 $ (1,932,523) $ 13,961,736 S 15,774,479 Continued The accompanying notes are an integral pan of this statetnenL 21 137 City of Moorpark Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds - Continued Year Ended June 30, 2010 Capital Projects Debt Service Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Prior Period Adjustment Fund Balances, End of Year 1,837,820 150,952 (373,826) 1,844,420 32,867 (21,314) (2,826,257) 23,448,369 2,146,058 33,042,220 135,208,035 201,807 400,147 $ 25,292,789 S 2,178,925 $ 33,222,713 $ 132,781,925 The accompanying notes are an integral put of this n=mem, 22 138 Non -Major Total Special Redevelopment Governmental Governmental Projects Agency Funds Funds REVENUES Taxes $ S 1,720,138 S 2,444,716 S 18,730,771 Licenses and Permits 598,370 Fines and Forfeitures 225,759 436,377 Use of Money and Property 6,600 32,868 346,860 1,547,229 Charges for Services 1,054,823 3,284,275 Intergovernmental 2,377,110 2,629,132 Maintenance Assessments 1,950,431 Other Revenue 70,268 587,832 Total Revenues 6,600 1,753,006 6,519,536 29,764,417 EXPENDITURES Current: General Government 1,497,916 Public Safety 248,639 6,769,484 Public Services 3,637,581 L2,343,896 Parks and Recreation 4,453,400 Capital Outlay 2,250,596 5,548,179 Debt Service: Principal 495,000 495,000 Interest 1,376,091 30,208 1,482,799 Total Expenditures - 1,871,091 6,167,024 32,590,674 Excess (Deficiency) of Revenues over Expenditures 6,600 (118,085) 352,512 (2,826,257) OTHER FINANCING SOURCES (USES) Transfer In 1,837,820 150,952 1,359,748 9,378,101 Transfer Out (1,733,574) (9,378,101) Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Prior Period Adjustment Fund Balances, End of Year 1,837,820 150,952 (373,826) 1,844,420 32,867 (21,314) (2,826,257) 23,448,369 2,146,058 33,042,220 135,208,035 201,807 400,147 $ 25,292,789 S 2,178,925 $ 33,222,713 $ 132,781,925 The accompanying notes are an integral put of this n=mem, 22 138 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, 2010 Net change in fund balances - total governmental funds S (2,826,257) 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 6,854,946 Depreciation expense (3,376,108) Governmental finds 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 (40,832) Accumulated depreciation on disposed assets 24,285 Tong -tern 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. 210,242 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. (24,023) 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. 505,592 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. 5,997 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. (30,883) Change in net assets of governmental activities $ 1,302,959 The accompmying notes arc as integral part of this statement 23 139 City of Moorpark Statement of Fiduciary Assets and Liabilities Agency Funds June 30, 2010 ASSETS Cash and Investments Restricted Cash and Investments Accounts Receivable Total Assets LUBQ.ITEES Accounts Payable Deposits Due to Bondholders Total Liabilities S 3,429,286 7,307,054 23,307 S 10,759,647 S 100,902 3,330,023 7,328,722 $ 10,759,647 The accompanying notes are an integral part of this statement_ 24 140 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 NOTE DESCRIPTION PAGE 1 Summary of Significant Accounting Policies 26-35 2 Cash and Investments 35-40 3 Notes and Loans Receivable 41 -43 4 Interfund Transactions 43-45 5 Capital Assets and Depreciation 45-46 6 Long -Term Liabilities 47-51 7 Agreements with Various Taxing Agencies 51-53 8 Retirement Plan S3-54 9 Other Post Employment Benefits (OPEB) 54-56 10 Conduit Debt - Revenue Bonds 57 11 Special Assessment Bonds 57-58 12 Risk Management 58-60 13 Classification of Net Assets and Fund Balance 60-62 14 Commitments and Contingencies 62-63 15 Proposition 1 A Borrowing by the State of California 63 16 New Pronouncement 64 17 Prior Period Adjustment 64 18 Subsequent Events 64 25 141 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 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 prinnaty government, either because the City appoints a voting majority of the component unit's Board, or because the component unit will provide a financial benefit or impose a financial burden on the City. The City has accounted for the 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. 26 142 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued A) Reporting Entity - Continued 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: Governmental Fund Types General Fund - Used to account for all financial resources except those required to be accounted for in another fund Special Revenue Funds - Used to account for the proceeds of specific revenue sources that are restricted by law or administrative action for specified purposes. 27 143 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C) Description of Funds - Continued Debt Service Funds - Used to account for property tax increment revenue and related interest income. Disbursements from this find consist mainly of principal and interest on indebtedness. Capital Projects Funds - Used to account for financial resources used for the construction of specific capital projects. 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 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 fimction and may include state shared revenues and grants. Capital contributions and grants include revenues restricted to meeting 28 ft 144 City of Moorpark Notes to Financial Statements Year Ended .Tune 30, 2010 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued D) Basis of Accounting and Measurement Focus - Continued 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 repotted 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. 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. 29 145 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued D) Basis of Accounting and Measurement Focus - Continued 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- 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. The Community Development Special Revenue Fund is used to account for fees used in planning, building and safety, and engineering services relating to community development. The Assessment District Special Revenue Fund is used to account for funds received by the City for maintenance of community-wide parks and landscaping. 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 -tithe capital expenditure of community -wide benefit due to the impact of additional development. 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. 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. The Police Facilities Fee Capital Projects Fund is used to account for the funds used to build the new police facility. 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 Redevelopment Agency Capital Projects Fund is used to account for the funds used for the Agency's capital improvement projocts. 30 146 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued D) Basis of Accounting and Measurement Focus - Continued The Special Projects Fund is used to account for various City capital improvement projects. 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. 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 fiend 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 Erternal Pools, which requires governmental entities to report certain investments at fair value in the balance sheet and recognize the corresponding change in the fair value of investments in the year in which the change occurred. In accordance with GASB Statement No. 31, the City has adjusted certain investments to fair value (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 31 147 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued F) Property Field for Resale/Development - Continued estimated net realizable value (as determined by a disposition and development agreement between the Agency and a developer) and has been offset by reservation of fund balance to indicate that assets constitute future capital projects and are not available spendable resources. The balance at June 30, 2010 was 519,428,853. 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 m6 mated historical cast if purchased or constructed. Donated or annexed capital assets are recorded at estimated market value at the date of donation or annexation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Depreciation is recorded in the Government -wide Financial Statements on a straight -line basis over the useful life of the assets as follows: Building and Improvements 25 to 50 years Vehicles, Computers, and equipment 3 to 20 years Infrastructure Assets Roadway Network 7 to 100 years Drain Network 20 to 100 years Parks and Recreation Network 50 years H) 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, 2010, the total unearned revenue amounted to $ 196,822 and unavailable revenue amounted to $4,860,274. 32 148 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 1) 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 admin leave up to a maximum of 120 hours, depending on position. The amount of maximum hours for the leave accrual is based on the employee classification: regular employee, management, department head or City Manager. Upon termination, employees are paid the full value of their unused annual leave, administrative leave, vacation time, and a portion of sick leave per management benefits and City's MOU. There is no fixed payment schedule for employee compensated absences. K) Property Taxes The duties of assessing and collecting property taxes are performed by the Ventura County (County) Assessor and Tax Collector, respectively. The City receives an allocation of property taxes collected by the County with respect to property located within the City limits equal to 7.40% 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. 33 149 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued 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, 2010, 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. 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 fast, and then unrestricted resources as they are needed. O) 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 loag -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 &mds. Neither transaction, however, has any affect on net 34 150 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICYES — Continued O) Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities - Continued 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 $505,592 difference is as follows: Amortization of Issuance Costs $ (16,853) Amortization of Bond Discounts (10,847) Principal Repayment 495,000 Principal Payment on Pension Related Debt 38,292 Net adjustment to increase net change in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ 505,592 2) CASH AND INVESTMENTS Cash and investments at June 30, 2010, consisted of the following: City Treasury Deposits Demand Deposits S 2,478,660 Cash on Hand 3,250 Total City Treasury Deposits 2,481,910 City Treasury Investments Certificates of Deposit 700,000 Local Agency Investment Fund (LAIF) 51,694,108 Ventura County Pool 49,295,709 Total City Treasury Investments 101,689,817 Cash and Investments With Fiscal Agent Money Markets 20,521,758 Guaranteed Investment Contracts 2,925,957 Total Cash and Investments With Fiscal Agent 23,447,715 Total Cash and Investments $127,619,442 35 151 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 2) CASH AND INVESTMENTS - Continued Cash and Investments are reported in the basic financial statements as follows: Statement of Statement of Fiduciary Net Assets Net Assets Governmental Activities Agenc}Fund Total Cash and Investments $ 1 00,742,441 S 3,429,286 $104,171,727 Restricted Cash and Investment 16,140,661 7,307,054 23,447,715 Total $ 116,883,102 S 10,736,340 S 127,619,442 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 Policx 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, 2010, the only debt agreements of the City pertain to the Agency. 36 152 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 2) CASH AND INVESTMENTS - Continued A) Authorized Investments - Continued Authorized Maximum Investment Type Maturity Maximum Percentage Of Portfolio* Maximum Investment 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 LA.1F N/A None None *Excluding amounts held by bond trustees that are not subject to California Government Code restrictions. 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 Tyne U.S. Treasury Obligations U.S. Agency Securities Banker's Acceptances Commercial Paper Money Market Mutual Funds Investment Contracts Maximum Maturity None None 180 days 270 days N/A 30 years 37 153 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 2) CASH AND INVESTMENTS - Continued 13) 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. 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. C) Credit Risk and Concentration of Credit Risk Deposits At June 30, 2010, the carrying amount of the City's deposits was $2,478,660. Bank balances before reconciling items were $2,819,456 at June 30, 2010, of which $2,819,456 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. 38 154 _ Investment Maturities (in Years) Investment Type Total Less than 1 1 to 2 2 to 3 3 to 4 >5 LAW S 51,694,108 S 51,694,108 $ S S $ Ventura County Pool 49,295,709 49,295,709 Certificates of Deposit 700,000 600,000 100,000 Held by Bond Trustee. Money Market Funds 20,521,758 20,521,758 Guaranteed Investment Contracts 2,925,957 2,925,957 Total $125,137,532 $122,111,575 $ 100,000 $ - $ - 52,925,957 C) Credit Risk and Concentration of Credit Risk Deposits At June 30, 2010, the carrying amount of the City's deposits was $2,478,660. Bank balances before reconciling items were $2,819,456 at June 30, 2010, of which $2,819,456 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. 38 154 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 2) CASH AND INVESTMENTS - Continued C) Credit Risk And Concentration of Credit Risk - Continued Deposits - Continued 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 Investment Type LAW Ventura County Pool Certificates of Deposit Held by Bond Trustee: Money Market Funds Guaranteed Investment Contracts Total Percentage of Carrying Value Credit Rating Investments $ 51,694,108 Not Rated 41.31% 49,295,709 Not Rated 39.39% 700,000 Not Rated .56% 20,521,758 Not Rated 16.40% 2,925,957 Not Rated 2.34% $ 125,137,532 100.00% The City has no investments in any one issuer that represent 5% or more of total investments as of June 30, 2010 other than LAIF and the Ventura County Pool. 39 155 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 2) CASH AND 1NVEST ENTS - Continued D) Local Agency Investment Fund (LAM) 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 LAIR At June 30, 2010, accounts were maintained in the name of the City for $36,602,174 and the Agency for $15,091,934. The total cost value of investment in LAIF was $51,694,108. The total fair value of investments in LAIF was $51,779,082. The unrealized gain was based on a fair market value adjustment factor of 1.001643776 that was calculated by the State of California Treasurer's Office. At June 30, 2010, the market value of the State of California Pooled Money Investment Account (PMIA) including accrued interest was $69,573,678,456. The State of California Pooled Money Account portfolio had securities in the form of structured notes and asset- backed securities. The PWA 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 $49,295,709 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. 40 156 City of Moorpark Notes to FInancial Statements Year Ended June 30, 2010 3) NOTES AND LOANS RECEIVABLE Notes and loans receivable activity for the year ended June 30, 2010, is as follows: Beginning Balance Increases Decreases Notes Receivable: Asadurian $ 800,000 $ $ Mission Bell 1,704,786 Deferred Property Assessments 250,249 Ending Balance $ 800,000 1,704,786 250,249 Total Notes Receivable 2,7552035 - - 2,755,035 Loans Receivable: Rehabilitation 31,384 31,384 First -time Homeowners Assistance 211,556 211,556 CalHome 381,183 (122,204) 258,979 Area Housing Authority 125,514 206,932 3321446 Total Loans Receivable 749,637 206,932 (122,204) 834,365 Total Notes and Loans Receivable $ 3,504,672 $ 206,932 $ 122,204 $ 3,589,400 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 LAIR 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 tnrst 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 balance outstanding at June 30, 2010 was $800,000. 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. 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. The balance of the remaining note (note no. 7) outstanding at June 30, 2010 was $1,704,786. Principal and interest are due on September 2, 2029. 41 157 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 3) NOTES AND LOANS RECEIVABLE - Continued 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, 2010, the principal balance outstanding was $250,249. D) Rehabilatation Loans The Agency operates a rehabilitation loan program for the renovation of low and moderate income housing. The total balance outstanding at June 30, 2010, was $31,384. E) First '1t rote 11emeowner Assistance The City provides down payment assistance loans to first -time homeowners. The total balance outstanding at June 30, 2010 was $211,556.1n 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 mobdehomes in Villa del Arroyo at June 30, 2010 was $258,979. 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 $150,256 has been received and $65,202 has been forgiven. Funds received are deposited into a City Trust Fund to be used for eligible home ownership - related activities. 42 158 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 3) NOTES AND LOANS RECEIVABLE - Continued G) Area Housing Authority (AAA) The Agency has entered into an agreement to loan the County of Ventura AHA up to $350,000 to assist in developing residential rental units on Agency owned property. As of June 30, 2010, the AHA has drawn down $332,446 on the available loan. The outstanding principal balance and interest are expected to be paid during fiscal year 2010/11. 4) INTERFUND TRANSACTIONS Due to/Due From Due to /due from other .funds for the year ending dune 30, 2010, consisted of the following: DUE TO RDA Capital General Projocts Non -Major Fund Fund Funds Total RDA Capital Projects Fund S 33,752 S S S 33,752 DUE MRA Operating Fund 61,233 61,233 FROM Non -Major Funds 52,917 350,000 166,564 569,481 Total S 147,902 S 350,000 S 166,564 S 664,466 The General Fund has advanced to the Agency and the State and Federal Assistance Fund $147,902 to cover current expenditures while the RDA Capital Projects Fund advanced the Low and Moderate Income Housing Fund $350,000 to fund housing projects. Balances between Non -Major Funds were to cover deficits at year end. Repayments are expected during fiscal year 2010/11. 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 advance is expected to be repaid with development fees to be collected in the future. The Endowment Fund has advanced to the Police Facilities Fee Fund $1,933,495 to fund capital improvements. The advance is expected to be repaid with development fees to be collected in the future. 43 159 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 4) LNTERFIJND TRANSACTIONS - Continued Transfers Interfund transfers for the year ended June 30, 2010 consisted of the following: TRANSFER TO TRANSFER TO TRANSFER FROM MRA TRANSFER FROM Operating Funds RDA General Fund S General Street and Capital Parks/Public 150,952 Fund Traffic Safety Project Facilities General Fund $ Special Projects Fund S 18,754 $ $ 2,760 RDA Debt Service Fund 26,687 886,942 Assessment District Fund RDA Capital Projects Fund 172,751 1,288,301 MRA Operating Fund Special Projects Fund 1,837,820 Non -Major Funds 64,160 I,265,360 Community Development Fund $60,255 Assessment District Fund 1,115,550 MRA Operating Fund 1,857,500 Non -Major Funds 30,228 Total S 3,813,625 S 18,754 S 1,887,728 S 2,760 TRANSFER FROM Total S 1,921,660 S 1,733,574 S 9,378,101 Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fimd that statute or budget requires to expend them and (2) use unrestricted revenues collected in the General Fund to finance various prograrns accounted for in other funds in accordance with budgetary authorizations or grant matching requirements. 44 160 MRA Non -Major Operating Funds Total General Fund S S 114,884 S 136,398 RDA Debt Service Fund 150,952 150,952 RDA Capital Projects Fund 1,857,500 1,857,500 Special Projects Fund 1,837,820 Community Development Fund 26,687 886,942 Assessment District Fund 172,751 1,288,301 MRA Operating Fund 2,940 1,860,440 Non -Major Funds 64,160 I,265,360 1,359,748 Total S 1,921,660 S 1,733,574 S 9,378,101 Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fimd that statute or budget requires to expend them and (2) use unrestricted revenues collected in the General Fund to finance various prograrns accounted for in other funds in accordance with budgetary authorizations or grant matching requirements. 44 160 City of Moorpark Notes to Financial Statements Year Ended Jane 30, 2010 4) INTERFUND TRANSACTIONS - Continued The transfers of $1,857,500 between the Redevelopment Agency Capital Projects Fund and the MRA Operating Fund were to transfer land held for resale to the Redevelopment Agency Capital Projects Fund and to reimburse the MRA Operating Fund for the cost of the land transferred. 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 General Fund transferred $1,837,820 to the Special Projects Fund to fund various capital projects of the City. The General Fund transferred funds to the Community Development and Assessment District Funds to finance these operations. 5) CAPITAL ASSETS AND DEPRECIATION In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the Governmcnt -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. 45 161 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 5) CAPITAL ASSETS AND DEPRECIATION - Continued The following table presents the capital assets activity for the year ended June 30, 2010. Beginning Ending Balance Ad justments• Increases Decreases Balance Governmental Activities: Capital Assets, Not Depreciated: Land Construction in Progress Total Capital Assets Not Depreciated Capital Assets Being Depreciated: Buildings and Improvements Machinery and Equipment Inhustiuctur e Roadway System Storm Drainage System Parks System Total Capital Assets Being Depreciated Less Accumulated Depreciation: Buildings and Improvements Machinery and Equipment Infrastructure Roadway System Storm Drainage System Parks System $ 28,719,337 S 7,577,422 S 117,252 S S 36,414,011 9,903,188 (525,661) 3,652,864 (3,548,745) 9,481,646 38,622,525 7,051,761 3,770,116 (3,548,745) 45,895,657 30,497,261 4,511,773 93,683,497 1,619,399 251,434 (23,026) 5,244,138 71,938 3,150 1,314,349 (15,095) 35,703,278 (20,626) 4,563,085 (5,111) 93,681,536 2,933,748 251,434 130,563,364 (23,026) 6,633,575 (40,832) 137,133,081 (5,103,588) 23,026 (997,241) 6,667 (6,071,136) (2,529,530) (362,570) 17,618 (2,874,482) (30,733,907) (1,988,502) (32,722,409) (184,696) (22,766) (207,462) 52( ,669) (5,029) (57,698) Total Accumulated Depreciation (38,604,390) 23,026 (3,376,108) 24:285 (41,933,187) Total Capital Assets Being Depreeiated, Net 91,958,974 - 3,257,467 (16,547) 95,199,894 Government Activities Capital Assets, Net of Depreciation S 130,581,499 7,051,761 $ 7,027,583 $ (3,565,292) $ 141,095,551 *Represents prior period adjustments (see Note 17). Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General Government Public Safety Public Services Parks and Recreation S 116,007 234,774 2,551,192 474,135 Total Depreciation Expense $ 3,376,108 46 162 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 6) LONG -TERM LIABILITIES Long -term liability activities for the year ended June 30, 2010, are as follows: Total $30,906,328 $ 510,819 $(1,002,381 ) $30,414,766 $ 1,024,089 .y A) 1999 Tai Allocation Bonds In 1999, the Agency issued $9,860,000 aggregated principal amount of Moorpark Redevelopment Project 1999 Tax Allocation Refirnding Bonds (1999 Bonds). The purpose of the 1999 Bonds was to advance refimd the Agency's previously issued $10,000,000 Moorpark Redevelopment Project, 1993 Tax Allocation Bonds (1993 Bonds). The purpose of the 1993 Bonds was to finance a portion of the costs of implementing the Redevelopment Plan, including low and moderate - income housing projects. The 1999 fonds 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 arc subject to mandatory sinking find redemption commencing on October 1, 2009, and on cash 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. 47 163 Beginning Ending Due Within Balance Additions Deletions Balance One Year 1999 Tax Allocation Bonds $ 5,970,000 $ $ (475,000) $ 5,495,000 $ 500,000 2001 Tax Allocation Bonds 11,540,000 (20,000) 11,520,000 15,000 2006 Tax Allocation Bonds 11,695,000 11,695,000 40,000 Discount on Bonds (298,284) 10,847 (287,437) (10,847) Pension Related Debt 1,357,356 (38,292) 1,319,064 Employee Compensated Absences 642,256 510,819 4( 79,936) 673,139 479,936 Total $30,906,328 $ 510,819 $(1,002,381 ) $30,414,766 $ 1,024,089 .y A) 1999 Tai Allocation Bonds In 1999, the Agency issued $9,860,000 aggregated principal amount of Moorpark Redevelopment Project 1999 Tax Allocation Refirnding Bonds (1999 Bonds). The purpose of the 1999 Bonds was to advance refimd the Agency's previously issued $10,000,000 Moorpark Redevelopment Project, 1993 Tax Allocation Bonds (1993 Bonds). The purpose of the 1993 Bonds was to finance a portion of the costs of implementing the Redevelopment Plan, including low and moderate - income housing projects. The 1999 fonds 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 arc subject to mandatory sinking find redemption commencing on October 1, 2009, and on cash 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. 47 163 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 6) LONG -TERM LIABUTATIIES - Continued A) 1999 Tai Allocation Bonds - Continued Debt service payments on the 1999 Bonds payable will be tmade from the Redevelopment Agency Debt Service Fund. Annual debt service requirements to maturity are as follows: Year Ending .Tune 30, 2011 2012 2013 2014 2015 2016 -2019 Total 13) 2001 Tax Allocation Bonds Tax Allocation Bonds Principal Interest Total $ 500,000 $ 255,694 $ 755,694 525,000 230,709 755,709 550,000 204,506 754,506 580,000 176,962 756,962 605,000 148,078 753,078 2,735,000 274,827 3,009,827 $ 5,495,000 ",290,776 S 6,785,776 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 Apri! I, 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. 48 164 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 6) LONG -TERM LIABILITIES - Continued B) 2001 Tax Allocation Bonds - Continued Annual debt service requirements to maturity are as follows: Year Ending Tax Allocation Bonds June 30, Principal Interest Total 2011 $ 15,000 $ 587,743 $ 602,743 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 -2020 720,000 2,893,470 3,613,470 2021 -2025 3,705,000 2,289,046 5,994,046 2026 -2030 4,755,000 1,211,422 5,966,422 2031 -2032 2,255,000 116,978 2,371,978 Total $ 11,520,000 $ 9,442,312 $ 20,962,312 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. 49 165 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 6) LONGTERM LU LITEES - Continued C) 2006 Tax Allocation Bonds - Continued 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 2011 $ 40,000 $ 507,437 $ 547,437 2012 40,000 505,987 545,987 2013 35,000 504,628 539,628 2014 40,000 503,269 543,269 2015 40,000 501,819 541,819 2016 -2020 235,000 2,483,919 2,718,919 2021 -2025 295,000 2,431,187 2,726,187 2026 -2030 355,000 2,361,781 2,716,781 2031 -3035 4,274,000 2,028,(331 6,298,431 2036 -2039 6,345,000 570,172 619151172 Total $ 11,695,000 $ 12,398,230 $ 241093,230 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 converted from an "agent" multiple - employer plan to a "cost- sharing" multiple -employer plan. Although a portion of the City's annual requited contributions are actuarially detennined 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 fimding 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 firnetions. 50 166 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 6) LONG - 'PERM LLkBILITIES - Continued D) Pension - Related Debt - Continued The future debt service requirements on this debt are as follows: Year Ending June 30, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total Pension - related Debt Principal Interest Total $ 45,923 $ 96,800 $ 142,723 54,297 93,065 147,362 63,476 88,675 152,151 73,528 83,567 157,095 84,527 77,675 162,202 96,549 70,923 167,472 109,682 63,234 172,916 124,016 54,520 178,536 139,650 44,688 184,338 156,692 33,637 190,329 175,256 21,258 196,514 195,468 7,433 202,901 $ 1,319,064 S 735,475 $ 2,054,539 E) Employee Compensated Absences The long -term liability at June 30, 2010 is $673,139 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 51 167 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 7) AGREEMENTS WITH VARIOUS TAXIING AGENCIES - Continued 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. 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 is not reasonably foreseeable to impair the Agency's obligation under the agreement), the VCCCD's 52 168 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 7) AGREEMENTS WITH VARIOUS TAXING AGENCIES - Continued 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 Ogee (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 CalPERS, a cost- sharing multiple- employer public employee defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. CalPERS 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 employers 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 2009 /10 was 10.990 percent. The contribution requirements for plan members are established by State statute and the employer contribution rate is 53 169 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 8) RETIREMENT PLAN - Continued B) Funding Policy - Continued 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 2007/08 $ 448,187 100% 2008/09 $ 491,357 100% 2009/10 $ 566,161 100% 9) OTHER POST EMPLOYMENT BENEFITS Plan Description The City's defined benefit post - employment healthcare plan, City of Moorpark Retiree Healthcare Plan, (MRHP), provides medical benefits to eligible retired City employees and spouses. MRHP is part of the Public Agency portion of the California Employers' Retiree Benefit Trust Fund (CERBT), an agent multiple- employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements is established by State statute within the Public Employees' Retirement Law. MRHP selects optional benefit provisions from the benefit menu by contract with Ca1PERS and adopts those benefits through City resolution. CalPERS issues a Comprehensive Annual Financial Report (CAFR). The CAFR is issued in aggregate and includes the sum of all CalPERS plans. Copies of the CalPERS CAFR may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814. Funding Policy The contribution requirements of plan members and the City are established and may be amended by the Council. The City contributes the Public Employees' Medical and Hospital Care Act (PEMHCA) minimum. 54 170 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 9) OTHER POST EMPLOYMENT BENEFITS - Continued Funding Policy - Continued The City is required to contribute the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The current ARC rate is 1.2% of the annual covered payroll. Annual OPEB Cost For 2010, the City's annual OPEB cost (expense) of $54,000 for MRHP was equal to the ARC. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2010 and the two preceding years were as follows: THREE -YEAR TREND INFORMATION FOR CERBT Fiscal Annual OPEB Year Cost (AOC) 6/30/10 $ 54,000 6/30/09 S 54,000 6/30/08 Percentage of OPEB Cost Net OPEB Contributed Obligation 1000/0 (316,000) 100% (341,000) 4 # The City of Moorpark pre - funded the Actuarial Accrued Liability of $364,000 plus the normal cost of $31,000 during the 2008/09 fiscal year ending June 30, 2009. * The information for the year ending June 30, 2008 is unavailable. GASB 45 was implemented prospectively in fiscal year 2008109. Funded Status and Funding Progress The funded status of the plan as of June 30, 2008, was as follows: Actuarial Accrued Liability (AAL) $ 364,000 Actuarial Value of Plan Assets $ 0 Unfunded Actuarial Accrued Liability (UAAL) $ 364,000 Funded Ratio (Actuarial Value of Plan Assets /AAL) 0% Covered Payroll (Active Plan Members) S 4,519,000 UAAL as a Percentage of Covered Payroll 8.055% 55 171 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 9) OTHER POST EMPLOYMENT BENEFITS - Continued Funded Status and Funding Progress - Continued Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of the plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short -term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. The following is a summary of the actuarial assumptions and methods: Valuation Date Actuarial Cost Method Amortization Method Remaining Amortization Period Actuarial Assumptions: Investment Rate of Return Projected Salary Increase Health Care Trend Rate General Inflation June 30, 2008 Entry Age Normal Cost Method Level Percent of Payroll 30 Years as of the Valuation Date 7.75% 3.25% 4.50% 3.00% 56 172 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 10) 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. The total bonds outstanding at June 30, 2010, totaled $13,025,000. 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, 2010, totaled $14,832,592. 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. 11) 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 $1,465,000 at June 30, 2010. 57 173 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 11) SPECIAL ASSESSMENT BONDS - Continued 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 $6,130,000 at June 30, 2010. 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 $35,955,000 at June 30, 2010. 12) RLSK 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 Cali fornia 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. 58 174 City of Moorpark Notes to Financial Statements Year Ended June 30, 2410 12) RISK MANAGEMENT - Continued A) Description of Self- Insurance Pool Pursuant to Joint Powers Agreement - Continued 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 General Liability: Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). Six months after the close of a fiscal year, outstanding claims are valued. Costs are spread to members as follows: the first $30,000 of each occurrence is charged directly to the member; costs from $30,001 to $750,000 are pooled based on a member's share of costs under $30,000; costs from $50,001 to $5,000,000 are pooled based on payroll. Cost of covered claims above $5,000,000 are currently paid by reinsurance. The Protection for each member is $50,000,000 per occurrence and $50,000,000 annual aggregate. Workers' Compensation: The City also participates in the workers compensation pool administered by the Authority. Members retain the first $50,000 of each claim. Claims are pooled separately between public safety and non -public safety. Loss development reserves are allocated by pool and by loss layer ($0 to $100,000 allocated by retained amount and $100,000 to $2,000,000 by payroll). Losses from $50,000 to $100,000 and the loss development reserve associated with losses up to $100,000 are pooled based on the member's share of losses under $50,000. Losses from $100,000 to $2,000,000 are pooled based on payroll. Costs in excess of $50,000,000 are pooled among the Members based on payroll. Administrative expenses are paid from the Authority's investment earnings. C) Purchased Insurance The City participates in the all -risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City property is currently insured according to a schedule of covered property submitted by the City to the Authority. Total all -risk property insurance coverage is $38,504,423. There is a $5,000 per loss deductible. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. 59 175 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 12) RISK MANAGEMENT - Continued 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. 'Ile City property currently has earthquake protection in the amount of $34,531,896. 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 program 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. 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 13) CLASSIFICATION OF NET ASSETS AND FUND BALANCE 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. 60 176 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 13) CLASSIFICATION OF NET ASSETS AND FUND BALANCE - Continued Unrestricted Net Assets This category represents the net assets of the City that are not externally restricted for any project or other purpose. In the Fund Financial Statements, the City has established `Preserves" to segregate portions of fund balance which are not appropriable for expenditure in future periods, or which are legally set aside for a specific future use. Fund " designations" also are established to indicate tentative plans for financial resource utilization of unreserved fund balance in a future period. The City's governmental funds reserves and designations at June 30, 2010, are presented below, followed by explanations of the nature and purpose of each reserve and designation. 61 177 Highlands General Endowment MRA Improvement Fund Mmd Operating Fund Fund Reserved: Capital Projects $ S $ S 13,961,736 Debt Service Property Held for Reesalel Development 7,142,622 Advances 1,933,495 Prepaid Items 337,286 Total Reserved $ 337,286 1,933,495 7,142,622 $ 132961,736 Unreserved, Designated: Future Projects S - $ - Redevelopment Redevelopment Agency Agency Noo-Major Capital Projects Special Projects Debt Service Governmental Fund Fund Fund Funds Reserved: Capital Projects S S S S Debt Service 1,884,723 Property Hold for Resale/ Development 4,398,806 7,887,425 Advances 1,000,000 Prepaid Items Total Reserved S 4,398,806 S 1,000,000 S 12884,723 $ 7,887,425 Unreserved, Designated: Ftmrne Projects S - S 24,292,789 S - S - 61 177 City of Moorpark Notes to Financial Statements Year Ended dune 30, 2010 13) CLASSIFICATION OF NET ASSETS AND FUND BALANCE - Continued Reserved for Capital Projects These funds are reserved for project expenditures related to the issuance of the CFD No. 2004 -1 bonds. Reserved for Debt Service These funds are reserved for restricted debt proceeds. Reserved for Property Held for Resale/Development These funds are reserved for property purchased by the Agency to be sold or otherwise used for the development of the Moorpark Redevelopment Agency Project Area or Low and Moderate Income Housing Projects. Reserved for Advances These fiords are reserved for advances to other funds. Reserved for Prepaid Items These funds are reserved for prepaid items. Unreserved, Designated for Future Projects These funds have been designated for future capital projects. Deficit Fund Balance The following non -major governmental funds had a deficit at June 30, 2010: Tierra Rejada/Spring Road Special Revenue Fund (167,864) Management expects these deficits to be eliminated through future revenues. 14) 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. 62 178 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 14) COMMITMENTS AND CONTINGENCIES - Continued 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. 15) PROPOSITION lA BORROWING BY THE STATE OF CALIFORNIA Under the provisions of Proposition lA and as part of the 2009 -10 budget package passed by the California State Legislature on July 28, 2009, the State of California borrowed 8% of the amount of property tax revenue, including those property taxes associated with the in -lieu motor vehicle license fee, the triple flip in -lieu sales tax, and the supplemental property tax, apportioned to cities, counties and special districts (excluding redevelopment agencies). The State is required to repay this borrowing plus interest by June 30, 2013. After repayment of this initial borrowing, the California legislature may consider only one additional borrowing within a ten -year period. The amount of this borrowing pertaining to the City was $628,112. Authorized with the 2009 -10 State budget package, the Proposition lA Securitization Program was instituted by the California Statewide Communities Development Authority ("California Communities "), a joint powers authority sponsored by the California State Association of Counties and the League of California Cities, to enable local governments to sell their Proposition ]A receivables to California Communities. Under the Securitization Program, California Communities simultaneously purchased the Proposition IA receivables and issued bonds ( "Prop IA Bonds ") to provide local agencies with cash proceeds in two equal installments, on January 15, 2010 and May 3, 2010. The purchase price paid to the local agencies equaled 100% of the amount of the property tax reduction. All transaction costs of issuance and interest were paid by the State of California. Participating local agencies have no obligation on the bonds and no credit exposure to the State. The City participated in the securitization program and accordingly property taxes have been recorded in the same manner as if the State had not exercised its right under Proposition 1 A. The receivable sale proceeds were equal to the book value and, as a result, no gain or loss was recorded. 63 179 City of Moorpark Notes to Financial Statements Year Ended June 30, 2010 16) NEW PRONOUNCEMENT The provisions of Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund 7jpe Definitions, will be required to be adopted and implemented by the City for the fiscal year 2010 -11. 17) PRIOR PERIOD ADJUSTMENT A) Governmental Activities The prior period adjustment of $7,451,908 in the Statement of Activities consists of the following: Capital assets were increased by $7,577,422 for land donated in prior years by a developer; $525,661 recorded as construction in progress should have been classified as land held for resale; in the Low and Moderate Income Housing Special Revenue Fund, prior year revenue of $125,514 should have been deferred while $327,320 and S198,341 of expenditures in the Low and Moderate Income Housing Special Revenue and the Redevelopment Agency Capital Projects Funds, respectively, should have been recorded as land held for resale but were expensed. B) Fund Financial Statements The prior period adjustment of $400,147 in the Statement of Revenues, Expenditures and Changes in Fund Balances consists of $125,514 in prior year revenue which should have been deferred in the Low and Moderate Income Housing Special Revenue Fund and $525,661 of land held for resale which was expensed in the prior year ($327,320 and $198,341 in the Low and Moderate Income Housing Special Revenue and the Redevelopment Agency Capital Projects Funds, respectively). 18) SUBSEQUENT EVENTS Subsequent to June 30, 2010, the City loaned $600,000 to the Agency for development of residential housing units for the Charles Street project. Subsequent to June 30, 2010 there was an unscheduled bond call of $8,395,000 that paid down the bonds of Moorpark Highlands. 64 180 REQUIRED SUPPLEMENTARY INFORMATION 181 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - General Fund Year Ended June 30, 2010 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES 325,000 350,000 392,578 42,578 PROPERTY TAXES 305,000 305,000 293,718 (11,282) Current Secured $ 3,150,000 $ 3,000,000 S 3,231,498 $ 231,498 Current Unsecured 50,000 40,000 32,128 (7,872) Prior Year Secured/ Unsecured 3,000 65,000 63,844 (1,156) Supplemental Secured/ Unsecured 100,000 100,000 64,265 (35,735) Real Property Transfer Tax 100,000 100,000 159,918 59,918 Homeowners Property Exemption 30,000 45,000 40,832 (4,168) Parcel Taxes 10,000 120,000 139,110 19,110 Property Taxes - VLF 2,825,000 2,920,000 2,920,201 201 Total Property Taxes 6,258,000 6,390,000 6,651,796 261,796 SALES TAXES Sales and Use Tax 2,175,000 2,175,000 2,382,010 207,010 Sales Tax Compensation 825,000 589,000 588,635 (365) Total Sales Taxes 3,000,000 2,764,000 2,970,645 206,645 FRANCHISE FEES Franchiso Fee - Adelphia 325,000 350,000 392,578 42,578 Franchise Fee - Edison 305,000 305,000 293,718 (11,282) Franchise Fee - Gas 125,000 125,000 83,313 (41,687) Franchise Fee - Oil 73,000 93,000 2,631 2,631 Franchise PEG Fees 30,000 41,799 11,799 Franchise GI Rubbish 225,000 195,000 186,955 (8,045) Franchise Moorpark Rubbish 120,000 115,000 113,323 (1,677) Landfill Local Impact Fee 55,000 55,000 49,483 (5,517) CIWMP Fees 10,000 10,000 8,025 (1,975) Total Franchise Fees 1,165,000 1,185,000 1,171,825 (13,175) SPECIAL BENEFIT ASSESSMENTS SBA - Storm Drain Maintenance Total Special Benefit Assessments - - - - LICENSES AND PERMITS Business Registration 60,000 80,000 137,830 57,830 Filming Permits 7,000 7,000 5,940 (1,060) NPDES Business Inspection Fees 6,000 6,000 3,145 (2,855) Total Licenses and Permits 73,000 93,000 146,915 53,915 65 Continued 182 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - General Fund - Continued Year Ended .Tune 30, 2010 REVENUES FINES AND FORFEITURES Municipal Code Fines Animal Control Fines Forfeiture & Penalties Settlements Total Fines & Forfeitures USE OF MONEY AND PROPERTY Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 175,000 $ 175,000 $ 195,161 $ 20,161 2,000 2,000 (2,000) 2,000 (2,000) 2,000 - 179,000 179,000 195,161 16,161 Investment Earnings 498,000 498,000 304,989 (193,011) Rents and Concessions 125,000 125,000 111,016 (13,984) Interest / City MRA Advance 230,000 150,000 76,500 (73,500) Total Money & Property 853,000 773,000 492,505 (280,495) CHARGES FOR SERVICES Other Admin Service Fees 80,000 80,000 99,017 19,017 Administrative Foes - CFD 100,000 100,000 (100,000) Park and Facility Use Fee 72,000 72,000 81,501 9,501 Contract Class Registration Fees 160,000 160,000 212,322 52,322 League Fees 100,000 100,000 103,213 3,213 Recreation Event Fees 250,000 250,000 238,339 (11,661) Advertising in brochure 10,000 10,000 10,240 240 Other Community Services Fees 48,000 37,000 1,443 (35,557) Photocopying 1,000 1,000 567 (433) Sale of Documents 1,000 1,000 656 (344) Special Police Dept Services 45,000 30,000 36,050 6,050 NSF Fees and Misc. Charges 1,000 1,000 1,035 35 Total Charges for Services 868,000 842,000 784,383 (57,617) WERGOVERNMEENTAL Off Highway Motor Vehicle - Motor Vehicle In Lieu 100,000 75,000 109,136 34,136 Other State Funds 5,000 20,000 18,608 (1,392) County Grants 10,000 10,000 21,934 11,934 Other Federal Revenue / Grants 5,000 23,465 12,849 (10,616) Total Intergovernmental 120,000 128,465 162,527 34,062 Continued 66 183 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - General Fund - Continued Year Ended June 30, 2010 REVENUES OTHER REVENUES Contributions / Donations Revenues not elsewhere classified Expense Reimbursements Restitution / Insurance Proceeds Total Other Revenues Total Revenue EXPENDITURES Current: General Government Public Safety Public Services Parks and Recreation Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ S 500 $ 9,781 $ 9,281 15,000 15,000 12,769 (2,231) 75,000 75,000 63,327 (11,673) 15,000 15,000 47,912 32,912 105,000 105,500 133,789 28,289 12,621,000 12,459,965 12,709,546 249,581 1,493,125 1,601,125 1,497,916 103,209 6,729,198 6,729,698 6,076,995 652,703 196,163 316,571 77,649 238,922 1,608,910 1,623,788 1,486,3 74 137,414 61,897 281,945 99,215 182,730 10,089,293 10,553,127 9,238,149 1,314,978 (2,251,891) (3,677,227) 2,531,707 1,906,838 3,471,397 1,564,559 OTHER FINANCING SOURCES (USES) Transfers In 26,000 55,925 136,398 80,473 Transfer Out (2,298,000) (2,307,816) (3,813,625) (1,505,809) Total Other Financing Sources (Uses) (2,272,000) (2,251,891) (3,677,227) (1,425,336) Net Change in Fund Balance 259,707 (345,053) (205,830) 139,223 Fund Balance, Beginning of Year 3,205,829 3,205,829 3,205,829 Fund Balance, End of Year S 3,465,536 $ 2,860,776 S 2,999,999 $ 139,223 67 184 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, 2010 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES USE OF MONEY AND PROPERTY Investment Earnings $ 400,000 S 400,000 S 247,087 $ (152,913) Total Use of Money and Property 400,000 400,000 247,087 (152,913) CHARGES FOR SERVICES Other Development Fees Total Charges for Services bTHER REVENUE Sale of Plans/Specifications Total Other Revenue Total Revenues EXPENDTIURES Current; Public Services Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures 1,672,000 365,000 432,459 67,459 1,672,000 365,000 432,459 67,459 - - 430 430 430 430 2,072,000 765,000 679,976 (85,024) 26,939 36,939 33,277 3,662 665,493 3,840,958 345,914 3,495,044 692,432 3,877,897 379,191 3,498,706 1,379,568 (3,112,897 ) 300,785 3,413,682 OTHER FINANCING SOURCES (USES) Transfers Out (50,000) (50,000) (18,754) 31,246 Total Other Financing Sources (Uses) (50,000) (50,000) (18,754) 31,246 Net Change in Fund Balance 1,329,568 (3,162,897) 282,031 3,444,928 Fund Balance, Beginning of Year 19,660,547 19,660,547 19,660,547 Fund Balance, End of Year $ 20,990,115 $ 16,497,650 $ 19,942,578 S 3,444,928 68 185 City of Moorpark Schedule of Revenues, Expenditures, and Chauges in Fund Balances Budget and Actual - Community Development Special Revenue Fund Year Ended June 30, 2010 REVENUES LICENSES AND PERMITS Misc. Business Permits Street Vendor Permits Home Occupation Permits Sign Permits Banner Permits Residential Building Permits Non Residential Building Permit Adj Commercial Permit Adj Industrial Permit Adj Residential Temporary Use Permit Enchroachmcnt Perooit Rental Inspection Permits Administrative Permits Total Licenses and Permits FINES AND FORFEITURES Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) S 4,000 4,000 10,575 S $ - 1,000 1,000 1,780 780 9,000 9,000 12,670 3,670 6,000 6,000 4,865 (1,135) 2,000 2,000 1,530 (470) 293,000 293,000 350,045 57,045 285,000 30,000 37,442 7,442 2,000 2,000 2,520 520 1,000 1,000 18,631 (1,000) 1,000 1,000 (1,000) 3,000 3,000 3,465 465 20,000 20,000 25,158 5,158 4,180 4,180 4,000 4,000 7,800 3,800 627,000 372,000 451,455 79,455 Municipal Code Fines 4,000 4,000 10,575 6,575 Code Enforcement Fines 4,171 4,171 Forfeiture and Penalties 711 711 Total Fines and Forfeitures 4,000 4,000 15,457 11,457 2,000 USE OF MONEY AND PROPERTY 4,130 2,130 Investment Earnings 136 136 Total Use of Money and Property - - 136 136 CHARGES FOR SERVICES City Admin Engin Contract City Admin Attny Contract Contract Admin Fee Other Admin Service Fees Zone Clearance Imaging Fees Advance Planning Fees Plan Check Residential Plan Check Non Residential 60,000 15,000 12,213 (2,787) 3,000 11,000 16,573 5,573 2,000 2,000 11,046 9,046 2,000 2,000 4,130 2,130 32,000 32,000 36,900 4,900 5,000 5,000 926 (4,074) 18,000 18,000 18,789 789 89,000 70,000 95,943 25,943 47,000 20,000 18,631 (1,369) Continued 69 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Community Development Special Revenue Fund - Continued Year Ended June 30, 2010 REVENUES CHARGES FOR SERVICES Planning Time Charges Public Improv Plan Check Public Improv Inspections Real Estate Fees Total Charges for Services OTHER REVENUES Expense Reimbursements Total Other Revenues Total Revenues EXPENDPPURES Current: Public Services Total Expenditures Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) S 336,000 S 225,000 S 363,769 S 138,769 9,000 25,000 19,733 (5,267) 81,000 10,000 8,809 (1,191) 2,000 2,000 3,195 1,195 686,000 437,000 610,657 173,657 752101 75,101 - - 75,101 75,101 1,317,000 813,000 1,152,806 339,806 2,574,711 2,268,239 1,990,225 278,014 . 2,574,711 2,268,239 1,990,225 278,014 Excess (Deficiency) of Revenues over Expenditures (1,257,711) (1,455,239) (837,419) 617,820 OTHER FINANCING SOURCES (USES) Transfers In 1,095,000 1,095,000 886,942 (208,058) Total Other Financing Sources (Uses) 1,095,000 1,095,000 886,942 (208,058) Net Change in Fund Balance (162,711) (360,239) 49,523 409,762 Fund Balance, Beginning of Year - - - Fund Balance, End of Year _L_(162,71 1) S (360,239) S 49,523 $ 409,762 70 187 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Assessment District Special Revenue Fund Year Ended June 30, 2010 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES USE OF MONEY AND PROPERTY Investment Earnings S 113,984 S 112,484 S 84,380 S (28,104) Total Use of Money and Property 113,984 112,484 84,380 (28,104) CHARGES FOR SERVICES Tennis/Basketball Court Lighting Use SPECIAL BENEFTr ASSESSMENTS SBA - Street Lighting SBA - Landscape Maintenance SBA - Storm Drain Maintenenace SBA - Park Maintenance Total Special Benefit Assessments OTHER REVENUES Expense Reimbursements Contributions and Donations Total Other Revenues Total Revenues EXPENDITURES Current: Public Safety Parks and Recreation Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures 3,000 3,000 6,775 3,775 3,000 3,000 6,775 3,775 408,100 3,868,498 4,518,991 246,000 246,000 251,377 5,377 888,000 1,062,000 925,962 (136,038) 9,000 9,000 18,745 9,745 708,000 708,000 691,202 (16,798) 1,851,000 2,025,000 1,887,286 (137,714) 66,000 240,034 174,034 85,000 85,000 (85,000) 85,000 151,000 240,034 89,034 2,052,984 2,291,484 2,218,475 (73,009) 379,032 394,032 443,850 (49,818) 3,489,466 3,648,512 2,960,426 688,086 476,447 68,347 408,100 3,868,498 4,518,991 3,4721623 1,046,368 (1,815,514) (2,227,507) (1,254,148) 973,359 Continued 71 188 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, 2010 OTHER FINANCING SOURCES (USES) Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance, Beginning of Year Fund Balance, End of Year Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) $ 1,495,500 $ 1,441,568 S 1,288,301 $ (153,267) 1,495,500 1,441,568 1,288,301 (153,267) (320,014) (785,939) 34,153 820,092 6,428,625 6,428,625 6,428,625 $ 6,108,611 S 5,642,686 $ 6,462,778 S 820,092 72 189 City of Moorpark Schedule of Revenues, Expenditures, mind Changes in Fund Balances Budget and Actual - Endowment Special Revenue Fund Year Ended June 30, 2010 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES USE OF MONEY AND PROPERTY Investment Earnings $ 76,000 $ 76,000 S 40,152 S (35,848) Rents and Concessions 84,000 84,000 70,819 (13,181) Total Use of Money and Property 160,000 160,000 110,971 (49,029) CHARGES FOR SERVICES Other Development Fees Community Service Fees Administration Fees Total Charges for Services Total Revenues EXPENDITURES Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures 588,000 230,000 277,202 47,202 32,000 18,000 21,760 3,760 25,000 25,000 28,500 3,500 645,000 273,000 327,462 54,462 805,000 433,000 438,433 5,433 358,402 362,902 54,187 308,715 358,402 362,902 54,187 308,715 446,598 70,098 384,246 314,148 OTHER FINANCING SOURCES (USES) Transfers Out Total Other Financing Sources (Uses) - - - - Net Change in Fund Balance 446,598 70,098 384,246 314,148 Fund Balance, Beginning of Year 4,777,666 4,777,666 4,777,666 Fund Balance, End of Year S 5,224,264 S 4,847,764 S 5,161,912 S 314,148 73 190 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, 2010 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES USE OF MONEY AND PROPERTY Investment Earnings $ 74,000 $ 74,000 $ 38,275 $ (35,725) Rents and Concessions 16,000 16,000 - (16,000) Total Use of Money and Property 90,000 90,000 38,275 (51,725) CHARGES FOR SERVICES Trees/Landscape Fees 12,000 12,000 41 (11,959) Library Facilities Fees 169,000 42,000 56,774 14,774 Fees in Lieu of Park Land 393,000 55 55 Other Development Fees 11,000 11,000 10,846 (154) Total Charges for Services 585,000 65,000 67,716 2,716 1TITERGOVERNMENTAL Park Bond 89,495 89,495 Total Intergovernmental - - 89,495 89,495 OTHER REVENUES Sale Plans/Specifications 95 95 Total Other Revenues - - 95 95 Total Revenues 675,000 155,000 195,581 40,581 EXPENDITURES Public Services 31,300 31,300 6,282 25,018 Parks and Recreation 6,600 (6,600) Capital Outlay 2,929,873 3,209,273 1,911,627 1,297,646 Total Expenditures 2,961,173 3,240,573 1,924,509 1,316,064 Excess (Deficiency) of Revenues over Expenditures (2,286,173) (3,085,573) (1,728,928) 1,356,645 Continued 74 191 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Park/Public Facilities Special Revenue Fund - Continued Year Ended June 30, 2010 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) OTHER FINANCING SOURCES (USES) Transfers In S 1,500,000 S 1,500,000 $ S (1,500,000) Transfers Out (2,760) (2,760) Total Other Financing Sources (Uses) 1,500,000 1,500,000 (2,760) (1,502,760) Net Change in Fund Balance (786,173) (1,585,573) (1,731,688) (146,115) Fund Balance, Beginning of Year 3,216,317 3,216,317 3,216,317 Fund Balance, End of Year S 2,430,144 S 1,630,744 S 1,484,629 $ (146,115) 75 192 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - MRA Operating Special Revenue Fund Year Ended June 30, 2010 REVIENU S PROPERTY TAXES Current Secured Current Unsecured Homeowners Property Exemption Total Property Taxes Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ S 3,172,000 S 2,995,783 (176,217) 712,000 758,316 46,316 24,000 17,552 (6,448) 3,908,000 3,771,651 (136,349) USE OF MONEY AND PROPERTY Investment Earnings 183,000 46,098 (136,902) Rents and Concessions 47,000 47,000 54,509 7,509 Total Use of Money and Property 47,000 230,000 100,607 (129,393) OTHER REVENUES Ticket Sales 65,000 65,000 62,050 (2,950) Advertising in Brochures 3,000 3,000 6,050 3,050 Sale Plans/Specifications 15 15 68,000 68,000 68,115 115 Total Revenues EXPENDITURES Public Services Capital Outlay Debt Service: Interest on Short -term Loan from City Total Expenditures Excess (Deficiency) of Revenues over Expenditures OTHER FINANCING SOURCES (USES) Proceeds from Bonds 5,000,000 5,000,000 (5,000,000) Transfers In 1,857,500 1,860,440 2,940 Transfers Out (11,000) (11,000) (1,921,660) (1,910,660) 115,000 4,206,000 3,940,373 (265,627) 1,513,852 6,672,010 6,590,521 81,489 5,494,934 5,884,670 4,219 5,880,451 150,000 76,500 73,500 7,008,786 12,706,680 6,671,240 6,035,440 (6,893,786) (8,500,680) (2,730,867) 5,769,813 Total Other Financing Sources (Uses) 4,989,000 6,846,500 (61,220) (6,907,720) 76 Continued 193 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, 2010 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Net Change in Fund Balance S (1,904,786) S (1,654,180) $ (2,792,087) S (1,137,907) Fund Balance, Beginning of Year 10,974,474 10,974,474 10,974,474 Fund Balance, End of Year S 9,069,688 S 9,320,294 S 8,182,387 S (1,137,907 77 194 City of Moorpark Schedule of Funding Progress for MRHP Year Ended June 30, 2010 Schedule of Funding Progreas for MRHP UAAL as a Percentage of Funded Covered Covered Ratio Payroll Payroll (A/B) (L) [(B-AYC] 0% S 4,519,000 8.055% •GASB 45 was implemented prospectively in fiscal year 2009. There were no previous actuarial valuations. 78 195 Actuarial Accrued Actuarial Actuarial Liability Unfunded Valuation Value of (AAL) Entry AAL Date Assets Age (UAAL) (A) (B) (B - A) 06/30/08 $ - S 364,000 $ 364,400 UAAL as a Percentage of Funded Covered Covered Ratio Payroll Payroll (A/B) (L) [(B-AYC] 0% S 4,519,000 8.055% •GASB 45 was implemented prospectively in fiscal year 2009. There were no previous actuarial valuations. 78 195 City of Moorpark Notes to the Required Supplementary Information Year Ended June 30, 2010 Budgetary Accounting The City adapts 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 $13,248,276. 'Ibis increase resulted primarily from additional appropriations to various construction in progress projects, acquisition of property, SERAF payment and rebudgeted projects and amounts carried over from Fiscal Year 2009/2010 as continuing appropriations. 79 196 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, 2010 REVENUES MAINTENANCE ASSESSMENTS Police Facilities Fees Total Maintenance Assessments Total Revenues EXPENDITURES Public Safety Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures Fund Balance, Beginning of Year Fund Balance, End of Year Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) $ 232,000 S 46,000 S 63,145 S 17,145 232,000 46,000 63,145 17,145 232,000 46,000 63,145 17,145 232,000 46,000 63,145 17,145 (1,995,668) (1,995,668) (1,995,668) S (1,763,668) $ (1,949,668) S (1,932,523) S 17,145 80 197 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Redevelopment Agency Capital Projects Fund Year Ended Jane 30, 2010 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Ne aUg �ve) REVENUES USE OF MONEY AND PROPERTY Investment Earnings S 355,000 S 355,000 S 85,355 $ (269,645) Total Use of Money and Property 355,000 355,000 85,355 (269,645) OTHER REVENUES Revenues Not Elsewhere Classified Sale Plans/Specifications Total Other Revenues Total Revenues EXPENDITURES Current: Public Services Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balance, Beginning of Year Prior Period Adjustment 355,000 355,000 85,355 (269,645) 8,361 (8,361) 12,053,153 12,352,269 759,299 11,592,970 12,053,153 12,352,269 767,660 11,584,609 (11,698,153) (11,997,269) (682,305) 11,314,964 1,857,500 1,857,500 (3,802,5001 (1,887,728) 1,914,772 (3,802,500) _ (30,228) 3,772,272 (11,698,153) (15,799,769) (712,533) 15,087,236 16,288,672 16,288,672 16,288,672 198,340 198,340 Fund Balances, End of Year $ 4,590,519 $ 488,903 S 15,774,479 $ 15,285,576 81 198 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Redevelopment Agency Debt Service Fund Year Ended June 30, 2010 REVENUES PROPERTY TAXES Tax Increment Secured Tax Increment Unsecured Total Property Taxes USE OF MONEY AND PROPERTY Investment Earnings Total Use of Money and Property Total Revenues EXPENDITURES Current: Public Services Debt Service Principal Interest Total Expenditures Excess (Deficiency) of Revenues over Expenditures OTHER FINANCING SOURCES (USES) Transfers In Tranfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance, Beginning of Year Fund Balance, End of Year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) S $ 1,720,138 S 1,720,138 S - 1,720,138 1,720,138 - _ 30,953 32,868 1,915 _ 30,953 32,868 1,915 - 1,751,091 1,753,006 1,915 495,000 495,000 - 1,376,091 1,376,091 - - 1,871,091 1,871,091 - (120,000) (118,085) 1,915 152,000 150,952 (1,048) 152,000 150,952 (1,048) 32,000 32,867 867 2,146,058 2,146,058 2,146,058 S 2,146,058 $ 2,178,058 $ 2,178,925 S 867 82 199 City of Moorpark Non -Major Governmental Funds June 30, 2010 SPECIAL REVENUE FUNDS Library Services Fund — is used to account for the financial resources for the operation of the City's public library system. Traffic Safety Fund - is used to account for revenues collected from traffic fines and forfeitures, which is used for crossing guards and parking enforcement. Affordable Housing Fund (City) - is used to account for grants used for development of affordable housing units. 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. 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. Casey /Gabbert 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. 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 State and Federal Assistance Fund - is used to account for Federal and State grants used for the constriction of street and related improvements and help fund law enforcement. State Gas Tax Fund - is used to account for fees used for street maintenance, right -of -way acquisition and street construction. Proposition 1B Local Streets and Roads Fund — is used to account for funds received from the State of California for specific transportation programs. Art in Public Places Fund — is used to account for fees used for public facilities improvements as a result of additional development. Proposition 1 B Safety and Security Fund — is used to account for the financial resources of the Prop 1 B bonds used for the seismic safety of bridges and public transit. 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. 83 200 City of Moorpark Non -Major Governmental Funds - Continued June 30, 2010 SPECIAL REVENUE FUNDS - Continued Local Transportation Transit Fund - is used to account for fees used in local transportation and street projects that help relieve traffic congestion programs and development. 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. CAPITAL PROJECTS FUNDS Capital Projects Fund — is used to account for financial resources used for major capital projects of the general government operations. City Hall Building Fund - is used to account for the funds used to build the new Civic Center Complex. Equipment Replacement Fund - is used to account for the funds used to replace city equipment and vehicles. 84 201 City of Moorpark Combining Balance Sheet Non -Major Governmental Funds June 30, 2010 Special Revenue Los Angeles Library Traffic Affordable Area of Services Safety Housing Contribution ASSETS Cash and investments S 850,287 $ 582,639 $ 3,923,806 S 11,491,518 Receivables: Accounts 43 32,360 Notes 485,535 250,249 Due From Other Funds 166,564 Property Held for Resale/Development Total Assets S 850,330 S 614,999 S 4,409,341 S 11,908,331 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable and Accrued Liabiliies S 24,084 $ 2,891 S S 29,889 Due to Other Funds Deferred Revenue 485,535 250,249 Total Liabilities 24,084 2,891 485,535 280,138 Fund Balances: Reserved For: Property Field for Resale/Development Unreserved, Reported in: Special Revenue Funds 826,246 612,108 3,923,806 11,628,193 Capital Projects Funds Total Fund Balances 826,246 612,108 3,923,806 11,628,193 Total Liabilities and Fund Balances 3 850,330 S 614,999 $ 4,409,341 $ 11,908,331 85 202 Special Revenue Tierra Rejada/ Freemont State and Prop 1B Art Spring Road Casey /Gabbers Storm Drain Federal State Gas Local Streets in Public A.O.0 A.O.0 A.O.0 Assistance Tax and Roads Places S $ 84,150 S 15,080 S 810,332 $ 324,382 S 683,731 S 1,549,318 142,778 39,969 S - S 84,150 S 15,080 $ 953,110 S 364,351 S 683,731 $ 1,549,318 S 1,300 $ S S 328,443 S 44,420 S 84,687 $ 181 166,564 23,2I6 167,864 - - 351,659 44,420 84,687 181 (167,864) 84,150 15,080 601,451 319,931 599,044 1,549,137 (167,864) 84,150 15,080 601,451 319,931 599,044 1,549,137 S - S 84,150 S 15,080 S 953,110 S 364,351 S 683,731 S 1,549,318 Continued 86 203 City of Moorpark Combining Balance Sheet Non -Major Governmental Funds - Continued June 30, 2010 Fund Balances: Reserved For. Property Held for Resale/Development 7,887,425 Unreserved, Reported In: Special Revenue Funds 103,513 (130,797) 6,868 994,082 Capital Projects Funds Total Fund Balances 103,513 7,756,628 6,868 994,082 Total Liabilities and Fund Balances $ 103,513 S 8,499,526 S 256,565 S 1,006,872 87 204 Special Revenue Prop 1 B Low and Local Safety Moderate Transportation Solid and Security Income Housing Transit Waste ASSETS Cash and Investments S 103,513 S 258,092 S 129,402 S 983,759 Receivables: Accounts 5,179 127,163 23,113 Notes 348,830 Due From Other Funds Property Held for Resale/Development 7,887,425 Total Assets S 103,513 $ 8,499,526 $ 256,565 $ I,006,872 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable and Accrued Liabiliies S $ 14,367 S 52,875 S 12,790 Due to Other Funds 379,701 Deferred Revenue 348,830 196,822 Total Liabilities - 742,898 249,697 12,790 Fund Balances: Reserved For. Property Held for Resale/Development 7,887,425 Unreserved, Reported In: Special Revenue Funds 103,513 (130,797) 6,868 994,082 Capital Projects Funds Total Fund Balances 103,513 7,756,628 6,868 994,082 Total Liabilities and Fund Balances $ 103,513 S 8,499,526 S 256,565 S 1,006,872 87 204 Capital Projects Total Nonmajor Capital City Hall Equipment Governmental Projects Building Replacement Funds $225,181 S 3,702,319 S 442,840 $ 26,160,349 370,605 1,084,614 166,564 7,887,425 $225,181 S 3,702,319 $ 442,840 S 35,669,557 S S S S 595,927 569,481 1,281,436 2,446,844 7,887,425 20,964,948 225,181 3,702,319 442,840 4,370,340 225,181 3,702,319 442,840 33,222,713 S225,181 $ 3,702,319 S 442,840 S 35,669,557 88 205 City of Moorpark Combining Statement of Revenues, Expenditures and Changes in Fund Balance Non -Major Governmental Funds Year Ended June 30, 2010 REVENUES Taxes Fines and Forteitures Use of Money and Property Charges for Services Intergovernmental Other Revenue Total Revenues EXPENDITURES Current: Public Safety Public Services Capital Outlay Debt Service: Interest Total Expenditures Excess (Deficiency) of Revenues Over Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Prior Period Adjustment Fund Balances, End of Year Special Revenue Los Angeles Library Traffic Affordable Area of Services Safety Housing Contribution S 797,267 $ S S 18,579 207,180 6,489 6,593 46,486 144,059 6,939 254,849 500,969 13,135 62,658 842,409 213,773 363,993 645,028 100,696 755,080 10,109 676,994 755,080 100,696 10,109 676,994 87,329 113,077 353,884 (31,966) 204 (29,925) (57,499) (29,925) 204 - (57,499) 57,404 113,281 353,884 (89,465) 768,842 498,827 3,569,922 11,717,658 S 826,246 S 612,108 S 3,923,806 S 11,628,193 89 206 Special Revenue Tierra Rejada/ Freemont State and Prop 1 B Art Spring Road Casey /Gabbers Storm Drain Federal State Gas Local Streets in Public A.O.0 A.O.0 A.O.0 Assistance Tax and Roads Places s s $ s $ s s 1,019 186 11,044 2,808 12,855 17,814 9,142 2,030 30 204,110 1,338,415 587,692 7,350 260 9,142 3,049 186 I,349,459 597,880 13,115 221,924 90 207 147,943 18,000 1,617,372 5,850 520,509 1,550 552,706 11,160 5,850 - - 686,452 1,618,922 552,706 11,160 3,292 3,049 186 663,007 (1,021,042) (539,591) 210,764 1,064,142 (3,839) (1,312,867) (172,752) (3,839) - - (1,312,867) 891,390 - - (547) 3,049 186 (649,860) (129,652) (539,591) 210,764 (167,317) 81,101 14,894 1,251,311 449,583 1,138,635 1,338,373 $ (167,864) s 84,150 $ 15,080 s 601,451 $ 319,931 S 599,044 $ 1,549,137 Continued 90 207 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 1 B Low and Local Safety Moderate Transportation Solid and Security income Housing Transit Waste REVENUES Taxes S S 1,372,988 S S 274,461 Fines and Forteitures Use of Money and Property 1,279 30,781 59 12,061 Charges for Services 73,774 2,980 Intergovernmental 422,692 15,176 Other Revenue Total Revenues 1,279 1,403,769 496,525 304,678 EXPENDITURES Current: Public Safety Public Services 584,596 372,889 279,535 Capital Outlay 11,337 353,636 Debt Service: Interest 30,208 Total Expenditures - 626,141 726,525 279,535 Excess (Deficiency) of Revenues Over Expenditures 1,279 777,628 (230,000) 25,143 OTHER FINANCING SOURCES (USES) Transfers In 237,122 Transfers Out (151,612) Total Other Financing Sources (Uses) - (151,612) 237,122 - Net Change in Fund Balances 1,279 626,016 7,122 25,143 Fund Balances, Beginning of Year 102,234 6,928,805 (254) 968,939 Prior Period Adjustment 201,807 Fund Balances, End of Year $ 103,513 S 7,756,628 S 6,868 S 994,082 91 208 Capital Projects Total Nontnajor Capital City Hail Equipment Governmental Projects Building Replacement Funds S S S S 2,444,716 225,759 1,890 45,930 5,507 346,860 1,054,823 2,377,110 70,268 1,890 45,930 5,507 6,519,536 248,639 3,637,581 96,003 20,851 2,250,596 30,208 96,003 20,851 6,167,024 1,890 (50,073) (15,344) 352,512 58,280 1,359,748 (2,670) (2,410) (1,733,574) 55,610 (2,410) - (373,826) 57,500 (52,483) (15,344) (21,314) 167,681 3,754,802 458,184 33,042,220 201,807 S 225,181 $3,702,319 S 442,840 $ 33,222,713 92 209 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Library Services Special Revenue Fund Year Ended June 30, 2010 REVENUES Taxes Fines and Forfeitures Use of Money and Property Charges for Services Intergovernmental Total Revenues EXPENDITURES Current: Public Services Total Expenditures Excess (Deficiency) of,Revenues over Expenditures Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) $ 755,000 $ 755,000 $ 797,267 S 42,267 25,000 25,000 18,579 (6,421 } Find Balance, End of Year $ 780,453 6,489 6,489 8,000 8,000 6,939 (1,061) 13,000 13,000 13,135 135 801,000 801,000 842,409 41,409 OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance 789,389 789,389 755,080 34,309 789,389 789,389 755,080 34,309 11,611 11,611 87,329 75,718 (29,925) (29,925) - (29,925) (29,925) - 11,611 (18,314) 57,404 75,718 Fund Balance, Beginning of Year 768,842 768,842 768,842 Find Balance, End of Year $ 780,453 $ 750,528 $ 826,246 S 75,718 93 210 City of Moorpark Sebedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Traffic Safety Special Revenue Fund Year Ended June 30, 2010 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Fines and Forfeitures $ 155,000 $ 155,000 $ 207,180 S 52,180 Use of Money and Property 15,000 15,000 6,593 (8,407) Total Revenues 170,000 170,000 213,773 43,773 EXPENDITURES Current: Public Safety 103,108 103,108 100,696 2,412 Total Expenditures 103,108 103,108 100,696 2,412 Excess (Deficiency) of Revenues over Expenditures 66,892 66,892 113,077 46,389 OTHER FINANCING SOURCES (USES) Transfer In 204 204 Total Other Financing Sources (Uses) - - 204 204 Net Change in Fund Balance 66,892 66,892 113,281 46,389 Fund Balance, Beginning of Year 498,827 498,827 498,827 Fund Balance, End of Year $ 565,719 $ 565,719 $ 612,108 $ 46,389 94 211 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Affordable Housing Special Revenue Fund Year Ended June 30, 2010 REVENUES Use of Money and Property Charges for Services Other Revenue Total Revenues EXPENDPTURES Current: Public Services Total Expenditures Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) S 74,000 $ 74,000 S 46,486 $ (27,514) 277,000 277,000 254,849 (22,151) 20,000 62,658 42,658 351,000 371,000 363,993 (7,007) 37,200 37,200 10,109 27,091 37,200 37,200 10,109 27,091 Excess (Deficiency) of Revenues over Expenditures 313,800 333,800 353,884 20,084 OTHER FINANCING SOURCES (USES) Transfers Out (18,000) (18,000) 18,000 Total Other Financing Sources (Uses) (18,00 (18,000) - 18,000 Net Change in Fund Balance 295,800 315,800 353,884 38,084 Fund Balance, Beginning of Year 3,569,922 3,569,922 3,569,922 Fund Balance, End of Year $ 3,865,722 $ 3,885,722 $ 3,923,806 $ 38,084 95 212 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Los Angeles Area of Contribution Special Reveme Fund Year Ended June 30, 2010 REVENUES Use of Money and Property Charges for Services Total Revenues EXPENDITURES Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) S 242,000 S 242,000 S 144,059 S (97,941) 715,OOt1 125,UOtD 5D0,969 375,969 957,000 367,000 645,028 278,028 4,439,383 5,052,256 676,994 4,375,262 4,439,383 5,052,256 676,994 4,375,262 (3,482,383) (4,685,256) (31,966) 4,653,290 OTHER FINANCING SOURCES (USES) Transfers Out (57,000) (57,000) (57,499) (499) Total Other Financing Sources (Uses) (57,000) (57,000) (57,499) (499) Net Change in Fund Balance (3,539,383) (4,742,256) (89,465) 4,652,791 Fund Balance, Beginning of Year 11,717,658 11,717,658 11,717,658 Fund Balance, End of Year $ 8,178,275 S 6,975,402 S 11,628,193 $ 4,652,791 96 213 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, 2010 Variance with Final Budget Budgeted Amounts Actual Positive Orin Final Amounts (Negative) REVENUES Use of Money and Property $ 2,000 $ 2,000 $ $ (2,000) Charges for Services 377,000 9,142 9,142 Other Revenue - Total Revenues 379,000 2,000 9,142 7,142 EXPENDITURES Capital Outlay 26,091 5,850 20,241 Total Expenditures - 26,091 5,850 20,241 Excess (Deficiency) of Revenues over Expenditures 379,000 (24,091) 3,292 27,383 OTHER MANCING SOURCES (USES) Transfers Out (3,839) (3,839) Total Other Financing Sources (Uses) - - 3,8391 (3,839) Net Change in Fund Balance 379,000 (24,091) (547) 23,544 Fund Balance, Beginning of Year (167,317) (167,317) (167,317) Fund Balance, End of Year $ 211,683 S (191,408) $ (167,864) $ 23,544 97 214 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, 2010 REVENUES Use of Money and Property Charges for Services Total Revenues EXPENDITURES Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures Fund Balance, Beginning of Year Fund Balance, End of Year Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) S 2,000 S 2,000 S 1,019 S (981) 2,030 2,030 2,000 2,000 3,049 1,049 2,000 2,000 3,049 1,049 81,101 81,10I 81,101 S 83,101 S 83,101 S 84,150 S 1,049 98 215 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, 2010 Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) REVENUES Use of Money and Property $ 1,000 $ 1,000 $ 186 S (814) Total Revenues 1,000 1,000 186 (814) EXPENDITURES Capital Outlay - Total Expenditures - - - - Excess (Deficiency) of Revenues over Expenditures 1,000 1,000 186 (814) Fund Balance, Beginning of Year 14,894 14,894 14,894 Fund Balance, End of Year $ 15,894 $ 15,894 $ 15,080 S (814) 99 216 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, 2010 REVENUES Use of Money and Property Intergovernmental Other Revenue Total Revenues EXPENDITURES Current: Public Safety Public Services Capital Outlay Total Expenditures Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positivc (Negative) $ 18,000 S 18,000 S 11,044 S (6,956) 2,494,000 2,863,356 1,338,415 (1,524,941) 70,000 (70,000) 2,512,000 2,951,356 1,349,459 (1,601,897) 100,000 107,819 147,943 (40,124) 37,025 37,025 18,000 19,025 1,190,175 2,3I1,867 520,509 1,791,358 1,327,200 2,456,711 686,452 1,770,259 Excess (Deficiency) of Revenues over Expenditures 1,184,800 494,645 663,007 168,362 OTHER FINANCING SOURCES (USES) Transfers Out (1,2132000) (1,213,000) (1,312,867) (99,867) Total Other Financing Sources (Uses) (1,213,000) _ (1,213,000) (1,312,867 ) (99,867) Net Change in Fund Balance (28,200) (718,355) (649,860) 68,495 Fund Balance, Beginning of Year 1,251,311 1,251,311 1,251,311 Fund Balance, End of Year S 1,223,111 S 532,956 S 601,451 S 68,495 100 217 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, 2010 REVENUES Use of Money and Property Charges for Services Intergovernmental Other Revenue Total Revenues EXPENDITURES Current: Public Services Capital Outlay Total Expenditures Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ $ $ 2,808 S 2,808 30 30 606,000 596,000 587,692 (8,308) 7,350 7,350 606,000 596,000 597,880 1,880 1,674,548 1,685,567 1,617,372 68,195 1,550 (1,550) 1,674,548 1,685,567 1,618,922 66,645 Excess (Deficiency) of Revenues over Expenditures (1,068,548) (1,089,567) (1,021,042) 68,525 OTHER FINANCING SOURCES (USES) Transfers In 1,139,000 1,072,000 1,064,142 (7,858) Transfers Out (229,000) (172,752) (172,752) - Total Other Financing Sources (Uses) 910,000 899,248 891,390 (7,858) Net Change in Fund Balance (158,548) (190,319) (129,652) 60,667 Fund Balance, Beginning of Year 449,583 449,583 449,583 Fund Balance, End of Year S 291,035 S 259,264 S 319,931 S 60,667 101 218 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Prop I B Local Streets and Roads Special Revenue Fund Year Ended June 30, 2010 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property S 12,000 S 12,000 $ 12,855 S 855 Intergovernmental 537,000 - Other Revenue 260 260 Total Revenues 549,000 12,000 13,115 1,115 EXPENDITURES Capital Outlay 581,448 581,448 552,706 28,742 Total Expenditures 581,448 581,448 552,706 28,742 Excess (Deficiency) of Revenues over Expenditures (32,448) (569,448) (539,591) 29,857 Fund Balance, Beginning of Year 1,138,635 1,138,635 1,138,635 Fund Balance, End of Year S 1,106,187 $ 569,187 S 599,044 $ 29,857 102 219 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, 2010 REVENUES Use of Money and Property Intergovernmental Total Revenues EXPENDPITMES Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) $ 36,000 S 36,000 $ 17,814 $ (18,186) 226,000 226,000 204,110 (21,890) 262,000 262,000 221,924 (40,076) 8,000 92,460 11,160 81,300 8,000 92,460 11,160 81 ,300 254,000 169,540 210,764 41,224 Fund Balance, Beginning of Year 1,338,373 1,338,373 1,338,373 Fund Balance, End of Year $ 1,592,373 $ 1,507,913 $ 1,549,137 S 41,224 103 1 I I 220 I 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, 2010 REVENUES Use of Money and Property Intergovernmental Total Revenues EXPENDITURES Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures Fund Balance, Beginning of Year Fund Balance, End of Year Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) $ 2,000 $ 2,000 $ 1,279 $ (721) 100,000 - 102,000 2,000 1,279 (721) 100,000 100,000 - 100,000 - 100,000 102,000 (98,000) 1,279 99,279 102,234 102,234 102,234 S 204,234 $ 4,234 $ 103,513 S 99,279 104 221 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, 2010 REVENUES Taxes Use of Money and Property Total Revenues EXPENDITURES Current: Public Services Capital Outlay Debt Service: Interest Total Expenditures Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) 1,340,000 S 1,407,000 S 1,372,988 S (34,012) 31,000 31,000 30,781 (219) 1,371,000 1,438,000 1,403,769 (34,231) 345,833 578,040 584,596 (6,556) 95,735 157,322 11,337 145,985 36,000 36,000 30,208 5,792 477,568 771,362 626,141 145,221 Excess (Deficiency) of Revenues over Expenditures 893,432 666,638 777,628 110,990 OTHER FINANCING SOURCES (USES) Transfers to Transfers Out (152,000) (152,000) (151,612) 388 Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance, Beginning of Year (152,000) (152,000) (151,612) 741,432 514,638 626,016 6,928,805 6,928,805 6,928,805 111,378 Prior Period Adjustment 201,807 201,807 Fund Balance, End of Year $ 7,670,237 S 7,443,443 S 7,756,628 S 313,185 105 222 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, 2010 REVENUES Use of Money and Property Charges for Services Intergovernmental Other Revenue Total Revenues EXPENDITURES Current: Public Services Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 400 $ 4,000 S 59 $ (3,941) 65,000 65,000 73,774 8,774 1,653,000 1,775,000 422,692 (1,352,308) 1,722,000 1,844,000 496,525 (1,347,475) 382,921 383,896 372,889 11,007 1,681,330 1,803,646 353,636 1,450,010 2,064,251 2,187,542 726,525 1,461,017 (342,251) (343,542) (230,000) 113,542 OTHER FINANCING SOURCES (USES) Transfers In 170,000 237,000 237,122 122 Total Other Financing Sources (Uses) 170,000 237,000 237,122 122 Net Change in Fund Balance (172,251) (106,542) 7,122 113,664 Fund Balance, Beginning of Year (254) (254) (254) Fund Balance, End of Year $ (172,505) $ (106,796) S 6,868 S 113,664 106 223 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Solid Waste Special Revenue Fund Year Ended June 30, 2010 REVENUES Taxes Use of Money and Property Charges for Services Intergovernmental Other Revenue Total Revenues EXPENDITURES Current: Public Services Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) S 288,000 S 288,000 $ 274,461 S (13,539) 20,000 20,000 12,061 (7,939) 2,980 2,980 16,600 16,600 15,176 (1,424) 324,600 324,600 304,678 (19,922) 410,124 429,735 279,535 150,200 410,124 429,735 279,535 150,200 (85,524) (105,135) 25,143 130,278 Fund Balance, Beginning of Year 968,939 968,939 968,939 Fund Balance, End of Year $ 883,415 $ 863,804 S 994,082 S 130,278 107 224 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Capital Projects Fund Year Ended June 30, 2010 Budgeted Amounts Actual Original Final Amounts Variance with Final Budget Positive (Negative) REVENUES Use of Money and Property S $ S 1,890 $ 1,890 Total Revenues - - 1,890 1,890 EXPENDITURES Capital Outlay 210,000 211,280 211,280 Total Expenditures 210,000 211,280 - 211,280 Excess (Deficiency) of Revenues over Expenditures (210,000) (211,280) 1,890 213,170 OTHER FINANCING SOURCES (USES) Transfer In 58,280 58,280 Transfer Out (2,670) (2,670) Total Other Financing Sources (Uses) - - 55,610 55,610 Net Change in Fund Balance (210,000) (211,280) 57,500 268,780 Fund Balance, Beginning of Year 167,681 167,681 167,681 Fund Balance, End of Year S (42,319) $ (43,599) S 225,181 S 268,780 108 225 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, 2010 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of Money and Property S 8,000 S 26,000 $ 45,930 $ 19,930 Total Revenues 8,000 26,000 45,930 19,930 EXPENDITURES Capital Outlay 3,772,795 3,748,795 96,003 3,652,792 Total Expenditures 3,772,795 3,748,795 96,003 3,652,792 Excess (Deficiency) of Revenues over Expenditures (3,764,795) (3,722,795) (50,073) 3,672,722 OTHER FINANCING SOURCES (USES) Transfer Out (2,410) (2,410) Total Other Financing Sources (Uses) - - (2,410) (2,410) Net Change in Fund Balance (3,764,795) (3,722,795) (52,483) 3,670,312 Fund Balance, Beginning of Year 3,754,802 3,754,802 3,754,802 Fund Balance, End of Year $ (9,993) $ 32,007 $ 3,702,319 $ 3,670,312 109 226 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Equipment Replacement Capital Projects Fund Year Ended June 30, 2010 REVENUES Use of Money and Property Total Revenues EXPENDITURES Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over Expenditures Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) $ 10,000 $ 10,000 $ 5,507 $ (4,493) OTHER FINANCING SOURCES (USES) Transfer In Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance, Beginning of Year Fund Balance, End of Year 10,000 10,000 5,507 (4,493) 1,800 40,800 20,851 19,949 1,800 40,800 20,851 19,949 8,200 (30,800) (15,344) 15,456 8,200 (30,800) (15,344) 15,456 458,184 458,184 458,184 $ 466,384 $ 427,384 $ 442,840 S 15,456 110 227 City of Moorpark Statement of Changes in Net Assets Agency Funds Year Ended June 30, 2010 ASSETS Cash and Investments Restricted Cash and Investments Accounts Receivable Due from Other Funds Total Assets LUBB.IT[ES Accounts Payable Developer Deposits Due to Bondholders Total Liabilities Balance at Balance at July 1, 2009 Additions Deletions June 30, 2010 $ 3,297,388 $ 131,898 S S 3,429,286 6,507,455 799,599 7,307,054 26,323 (3,016) 23,307 21,532 (21,532) - $ 9,852,698 $ 931,497 $ (24,548) $ 10,759,647 S 182,046 $ 3,116,619 213,404 6,554,023 774,699 S (81,144) $ 100,902 3,330,023 7,328,722 $ 9,852,688 $ 988,103 $ (81,144) $ 10,759,647 111 228 CITY OF MOORPARK Net Assets by Component Lest Eight Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 Governmental activities: Invested in capital assets, net of related debt S 85,969,804 S 93,941,392 S 99,760,671 S 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 S 159,106,739 $ 167,310,012 S 172,580,040 S 193,142,118 Continued 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. 112 229 Governmental activities: Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets CITY OF MOORPARK Net Assets by Component Last Eight Fiscal Years - Continued (accrual basis of accounting) Fiscal Year 2007 2008 2009 2010 S 125,900,770 S 130,071,108 S 130,581,499 $ 141,095,551 100,649,409 101,613,368 94,878,693 89,571,308 6,458,224 3,641,173 14,213 ,503 17,761,703 S 233,008,403 S 235,325,649 S 239,673,695 S 248,428,562 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. 113 230 CITY OF MOORPARK Changes in Net Assets Last Eight Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 Expenses: 5,709,323 General government S 2,116,644 Public safety 4,142,268 Public services 7,150,513 Parks and recreation 2,276,066 Interest on long -term debt 1,040,854 Total governmental activities expense 16,726,345 Program revenues: 1,570,551 Charges for services: 2,734,470 General government 509,401 Public safety 708,392 Public services 2,166,168 Parks and recreation 3222,772 Total charges for services 3,706 733 Operating contributions and grants 5,44001099 Capital contributions and grants 4,1312439 Total governmental activities 4,077,849 program revenues 13,278,271 Net program revenues (expenses) J3,448,074) General revenues and other changes in net assets: Taxes: Property tax 2,413,964 Property tax, Redevelopment Agency 3,577,050 Franchise tax 1,067,669 Sales tax 1,664,626 Sales tax in lieu - Motor vehicle in lieu 2,161,324 Investment income 2,027,190 Other 21,479 Gain on sale of property - Special item (1) - County settlement - Total governmental activities 122933 302 Changes in net assets - 2006 S 2,351,860 $ 3,030,395 S 3,044,381 4,902,148 5,709,323 6,230,057 10,957,272 9,844,050 13,106,843 2,600,523 2,304,852 2,771,270 1,097,421 97 8, 843 1,333,370 21,909,224 21,867,463 26,485,921 1,570,551 2,836,154 2,734,470 1,407,130 2,010,540 2,201,590 369,795 344,019 340,341 4,181,363 2,776,976 4,163,781 536,238 501,283 536,166 6,494,526 5,632,818 7,241,878 4,077,849 2,313 834 3,237,143 4,7312311 4,633 166 18,027,831 15,303,686 12,579,818 28,506,852 (6,605,538) (9,287,645) 2,020,931 2,658,230 2,655,093 2,929,842 4,116,542 3,901,779 5,530,198 919,290 955,829 1,080,893 2,176,893 2,046,368 2,260,786 - 537,485 608,298 1,570,551 2,836,154 2,734,470 1,363,344 1,725,579 3,261,384 177,380 1,160,805 135,276 - 48,339 - (900,000) - - 12,082,230 15,867,431 18,541,14 governmental activities $ 9� 485 228 $ 5,476,692 S 6,579,786 S 20_ 562,078 Continued Tice City of Moorpark has elected to report retroactively hack to the year the City implemented GASB 34 (June 30, 2003). (1) Mission Bell note 114 231 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 C 115 232 CITY OF MOORPARK Changes in Net Assets - Continued Last Bight Fiscal Years (accrual basis of accounting) Fiscal Year 2007 2008 2009 2010 Expenses: General government S 1,639,628 S 1,949,206 $ 2,041,596 S 1,603,279 Public safety 6,317,283 6,882,072 7,035,384 7,016,015 Public scrvices 21,231,766 20,580,204 18,170,325 13,589,878 Parks and recreation 4,293,823 4,551,045 4,470,524 4,934,002 Interest on long -term debt 1,332,541 1,773,841 1,616,843 1,504,502 Total governmental activities expenses 34,815,041 35,736,368 33,334,672 28,647,676 Program revenues: Charges for services: General government 191,674 283,576 232,926 258,431 Public safety 598,500 633,131 538,636 477,305 Public services 6,612,769 5,743,200 3,172,708 2,769,641 Parks and recreation 604,904 756,885 644,979 643,593 Total charges for services 8,007,847 7,416,792 4,589,249 4,148,970 Operating contributions and grants 4,489,945 7,113,883 6,172,315 4,128,842 Capital contributions and grants 38,337,638 5,481,972 3,326,778 1,970,931 Total governmental activities program revenues 50,835,430 20,012,647 14,088,342 10,248,743 Net program revenues (expenses) 16,020,389 (15,723,721 (19,246,330 18 398,933 General revenues and other changes in net assets: Taxes: Property tax 3,334,491 4,505,980 7,802,643 7,449,063 Property tax, Redevelopment Agency 6,347,692 6,887,079 7,054,432 6,864,777 Franchise tax 1,126,951 1,150,180 1,171,556 1,171,825 Sales tax 2,192,327 2,306,281 2,329,522 2,382,010 Sales tax in lieu 704,562 779,263 849,227 588,635 Motor vehicle in lieu 2,860,207 3,038,440 125,307 109,136 Investment income 6,556,186 2,491,856 2,875,649 853,074 Other 58,841 139,728 386,040 283,372 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 Changes in net assets - govetnmental activities S 39,478,443 S 5,575,086 $ 4,348,046 S 1,302,959 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 C 115 232 General fund: Reserved Unreserved Total general fund All other governmental funds: Reserved Unreserved, reported in: Special revenue funds Capital projects funds Debt Service funds Non -major funds CITY OF MOORPARK Fund Balances of Governmental Funds Last Eight Fiscal Years (modified accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 $ - $ - $ 5,772,444 S 2,943,353 13,456,231 14,756,222 12,5271255 18,301,058 S 13,456,231 S 14,756,222 S 18,299,699 $ 21,244,411 S 4,378,065 S 4,099,849 $ 13,889,036 $ 14,124,235 32,857,500 29,994,471 26,977,320 36,903,391 9,625,965 8,950,250 3,361,134 1,293,998 (97,935) (891,297) (346,716) (321,425) 7,146,987 10,651,331 8,272,652 9,724,941 Total all other governmental funds S 53,910,582 S 52,8042604 $ 52,153,426 S 61,725,140 Continued The City of Moorpark has elected to report retroactively back to the year the City implemented GASB 34 (June 30, 2003). 116 233 CirY OF MOORPARK Fund Balances of Governmental Funds - Continued Last Eight Fiscal Years (modified accrual basis of accounting) General fund: Reserved Unreserved Total general fiord All other governmental funds: Reserved Unreserved, reported in: Special revenue funds Capital projects funds Debt Service funds Non -major funds Total all other governmental funds Fiscal Year 2007 2008 2009 2010 $ - $ 95,397 $ 373,209 S 337,286 24,405,620 3,625,348 2,832,620 2,662,713 $ 24,405,620 S 3,720,745 $ 3,205,829 $ 2,999,999 $ 41,864,116 S 35,103,620 $ 33,719,016 $ 38,208,807 41,486,631 42,761,089 37,278,628 32,207,690 16,807,370 39,098,065 35,699,829 33,735,939 83,243 (1,025,927) 261,336 294,202 8,693,969 13,384,413 25,043,397 25,335,288 $ 108,935,329 S 129,321,260 S 132,002,206 $ 129,781,926 The City of Moorpark has elected to report retroactively back to the year the City implemented GASB 34 (June 30, 2003). 117 234 CITY OF MOOPPARK Changes in Fund Balances of Governmental Funds Last Eight Fiscal Years (modified accrual basis of accounting) Fiscal Year 2003 2004 2005 Revenues: Taxes Licenses and permits Fines and forfeitures Uses of money and property Charges for services Intergovernmental Maintenance assessments Franchise fees Building and safety fees Planning and public work fees Development fees Contributions from prop owners Other Total revenues Expenditures Current: General government Public safety Public services Parks and recreation Capital outlay Debt service: Principal Interest Bond issuance costs Total expenditures 2006 S 8,490,985 $ 9,870,955 S 9,139,722 S 12,231,076 51,083 63,146 54,180 72,365 290,054 306,871 344,019 340,341 2,027,190 1,363,006 1,924,579 3,261,384 867,731 2,001,561 2,558,974 2,665,391 4,051,263 4,298,009 5,150,992 6,302,193 2,955,340 2,639,628 1,963,190 1,845,742 232,324 257,127 1,231,763 283,162 608,879 595,138 431,959 1,110,715 2,132,190 2,614,959 1,967,751 3,053,066 4,486,128 4,097,977 2,669,976 15,568,347 256,376 281,506 2,832,962 397,574 26,449,543 28,389,883 30,270,067 47,131,356 2,048,658 2,259,017 2,893 ,359 2,919,564 4,127,670 4,882,547 5,690,820 6,211,461 8,765,039 8,401,453 8,098,147 11,215,406 2,063,428 2,381,698 2,081,723 2,544,206 3,596,982 8,775,159 7,810,879 10,038,439 365,000 395,000 405,000 435,910 1,044,915 1,100,996 1,158,585 1,251,354 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 S 4,437,851 $ 194,013 $ 2,1791893 $ 122516,426 Debt service as a percentage of noncapital expenditures 8.3% 8.3% 8.3% 7.4% Continued The City of Moorpark has elected to report retroactively back to the year the City implemented GASB 34 (June 30, 2003). 118 235 CITY OF MOORPARK Changes in Fund Balances of Governmental Funds - Continued Last Bight Fiscal Years (modified accrual basis of accounting) The City of Moorpark has elected to report retroactively back to the year the City implemented GASB 34 (Jare 30, 2003). 236 119 Fiscal Year 2007 2008 2009 2010 Revenues: Taxes S 13,706,024 S 15,392,269 S 19,716,636 S 18,730,771 Licenses and permits 65,630 72,951 645,010 598,370 Fines and forfeitures 343,579 358,665 484,930 436,377 Uses of money and property 7,085,104 5,684,111 3,114,881 1,547,229 Charges for services 338,929 677,277 3,813,159 3,284,275 Intergovernmental 6,163,985 7,549,040 3,948,059 2,629,132 Maintenance assessments 1,922,471 4,205,700 3,491,975 1950,431 Franchise fees 292,003 301,514 398,539 587,832 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 34,066993 - - - Other 2,030,211 433,378 - - Total revenues 74,784,334 41,645,646 35,613,189 29,764,417 Expenditures Current: General government 1,471,354 1,835,801 1,926,283 1,497,916 Public safety 6,083,917 6,637,757 6,814,425 6,769,484 Public services 9,608,754 12,505,613 11,259,297 12,343,896 Parks and recreation 4,039,888 4,291,867 4,182,091 4,453,400 Capital outlay 19,477,866 14,682,017 8,100,604 5,548,179 Debt service: Principal 440,000 455,000 475,000 495,000 Interest 1,400,985 1,631,932 1,594,062 1,482,799 Bond issuance costs 505,588 - - - Total expenditures 43,028,352 42,039,987 34,351,762 32,590,674 Excess of revenues over expenditures 31,755,982 (394,341) 1,261,427 (2,826,257) 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 Transfers out (9,457,260) (27,626,755) (17,062,650) _ (9,378,101) Total other financing sources (uses) 11,6462396 - 1,000,000 Net change in fund balances S 43,402,378 S 394 41 S 2,261,427 S 2,826,25 Debt service as a percentage of noncapital expenditures 8.7% 8.3% 8.6% 7.9% The City of Moorpark has elected to report retroactively back to the year the City implemented GASB 34 (Jare 30, 2003). 236 119 CITY OF MOORPARK Assessed Value and Fstirsated Actual Value of Taxable Property Last Tea Fiscal Years NOTE: In 1978 flue voters of the State of Califomia passed Proposition 13 whist limited property tax rs to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limned to a magnum increase of 2%). With few exceptions, property is only re- sawased 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 Asstnsoes Office 120 237 City Redevelopment Agency Frseal Year Taxable Taxable Total Fmdod Less. Assessed Leas Assessed Duect Tax Jaee 30 Sensed Uosecmod exemptions Value Secured Unsecured Exemptions Value Rabe 2001 S 2,421,104,221 S 92,634,149 S 40,786,802 S 2,554,525,172 $434,091,609 S 59,042,494 S 3,849,357 S 496,983,460 1051% 2002 2,549,732,519 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 42,233,926 2,986,141,470 514,599,965 84,435,148 3,862.434 602,897,547 1061% 2004 3,026,137,647 155,943,246 43,185,512 3,225,266,405 542,789,350 95,244,418 3915,879 641,950,147 1.059% 2005 3,231,418,940 172,769,306 43,305,637 3,447,494,383 532,445,978 93,810,356 3,904,910 630,161,744 1.050% 2006 3,721 91,791 168,802.350 43,313,074 3, 933,707,215 660,810,677 99,693,057 3,931,766 764,435,500 1055% 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 1062% 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 4,920,833,019 828,244,210 102,730,045 4,309,164 933,283,419 IOSM 2010 4,619,910,655 180,983,669 46,474,503 4,847,373,832 825,093,781 113,302,525 4,333 ,240 942,729,546 1050% NOTE: In 1978 flue voters of the State of Califomia passed Proposition 13 whist limited property tax rs to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limned to a magnum increase of 2%). With few exceptions, property is only re- sawased 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 Asstnsoes Office 120 237 CITY OF MOORPARK Direct and Overlapping Property Tax Rates (Rate per S 100 of assessed value) Last Ten Fiscal Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 City Direct Rites: City basic rate 1.05062 1.04171 1.06072 1.05820 1.05020 1.05480 1.06163 1.04955 1.04950 1.05020 Redevelopment agency - - - - - - Total City Direct Rate 1.051 1.042 1 061 1.058 1 050 1.055 1.062 1.050 1.050 1 050 Overlapping Rates: Ventura County Flood Coat. 8.012 8.039 8.097 1118 n/a ala de n/a n/a n/a Metropolitan Water District 0.222 0.229 2.340 0.233 0.232 0.235 0.233 0.234 0.230 0.230 Ventura Community College a/a n/a 4.312 4.311 4.269 4.331 4.296 4.361 4.371 4 402 Ventura County Waterworks 100.000 n/a alit n/a n/a ale n/a n/a alit n/a Conejo Valley Unified School District 0.021 0 027 0.025 0.024 0.022 0.020 0.019 0.018 0.018 0.019 Moorpark Unified School District n/a 92.311 91.733 91.959 92.121 92.442 92.313 92.417 92.240 91.924 City of Moorpark 100.000 100.000 100.000 100.000 100.000 100.000 100.000 I00.000 100.000 100.000 City of Moorpark Community Facilities District No. 97 -1 11/1 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 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 109.306 101.648 107.568 97.585 97.694 98.083 97.923 98.080 97.909 97.625 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 Source: California Municipal Statistics Ventura County Assessor 121 238 CITY OF MOORPARK Principal Property Tax Payers Current Year and Nine Years Ago $ 270,044,437 54.88% S 71,224,419 27.88% ' 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 2009 -2010 property data 122 239 2009 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 $ 69,761,376 14.18% $ - 0.00% Waterstone Properties Moorpark LLC 48,894,000 9.94% - 0.00% G & Y Moorpark LLC 25,547,420 5.19% - 0.00% Mission Bell West LP 23,536,896 4.78% 20,208,563 7.91% James Birkenshaw, Et. Al. 19,913,624 4.05% 12,264,597 4.80% Calabasas BCD Inc. 19,554,740 3.97% 11,751,954 4.60% Tuscany Square Partners LLC 18,910,560 3.84% - 0.00% Fred Kavii 15,777,912 3.21% 12,701,599 4.97% Mission Bell East LLC 14,124,992 2.87% 14,297,706 5.60% Moorpark Plaza Family Partners Ltd 14,022,917 2.85% - 0.00% $ 270,044,437 54.88% S 71,224,419 27.88% ' 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 2009 -2010 property data 122 239 CTfY OF MOORPARK Secured Property Tax Levies and Collections Last Teo Fiscal Years Collected within the Collections Fiscal Taxes Levied Fiscal Year of Levy from Year Eaded for the Percent Previous June 30 Fiscal Year Amount of Levy Years Total Collections Percent Amount of Levy 2001 $ 1,573,688 $ 1,506,396 95.72% $ 44,188 $1,550,584 98.53% 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 98.95% 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 3,286,857 3,376,883 102.74% 145,134 $3,522,017 107.15% 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% NOTE: The amount presented includes City property taxes only. It does not include redevelopment tax increment. Source: Ventura County Auditor Controller's Office 123 240 Fiscal Year Ended June 30 CffY OF MOORPARK Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities General Tax Total Total Percentage Debt Obligation Allocation Governmental Primary of Personal Per Bonds Bonds t Activities Government income 2 Capita 2 2001 - S 9,195,000 S 9,195,000 S 9,195,000 0.38% 286 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 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 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, 2010 is $5,495,000, $11,520,000 and $11,695,000 respectively. 2 These ratios are calculated using personal income and population for the prior calendar year. 124 241 CITY OF MOORPARK Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years Fiscal Year Ended June 30 Outstanding General Bonded Debt General Tax Obligation Allocation Bonds Bonds Total Percent of Assessed Value t Per Capita 2001 - S 9,195,000 S 9,195,000 0.30% S 286 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 General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). Assessed value has been used because the actual value of taxable property is not readily available in the State of California. 125 242 CITY OF MOORPARK Direct and Overlapping Debt June 30, 2010 City Assessed Valuation 2009 -10 S 4,847,716,832 Redevelopment Agency Incremental Valuation 678,574,184 Adjusted Assessed Valuation S 42169,142,648 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. 126 243 Estimated Share of Percentage Debt as of Overlapping Applicable 6/30/2010 Debt Direct and Overlapping Tax and Assessment Debt: Metropolitan Water District 0.230% S 264,220,000 $ 607,706 Ventura Community College District 4.402% 315,947,814 13,908,023 Conejo Valley Unified School District 0.019% 38,595,505 7,333 Moorpark Unified School District 91.924% 40,850,407 37,551,328 City of Moorpark Community Facilities District No. 97 -1 100.000% 6,130,000 6,130,000 City of Moorpark Community Facilities District No. 2004 -1 1 WOW% 34,440,000 34,440,000 City of Moorpark 1915 Act Bonds 100.000% 1,465,000 1,465,000 Toal Direct and Overlapping Tax & Assessment Debt 701,648,726 94,109,390 Overlapping General Fund Obligation Debt: Ventura County General Fund Obligations 4.401% S 108,610,000 4,779,926 Ventura County Superintendent of Schools COPS 4.401% 12,445,000 547,704 Moorpark Unified School District CODs 91.924% 89550,000 7,859,502 Total Overlapping General Fund Obligation Debt 129,605,000 13,187,132 Combined Total Debt* S 8319253,726 107,296,522 Total direct and overlapping debt $107,296,522 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. 126 243 Assessed valuation Conversion percentage Adjusted assessed valuation Debt limit percentage Debt limit Total net debt applicable to limit: General obligation bonds - - - - - Legal debt margin 90,791,408 952616,844 105,889,773 105,889,773 121,178,210 Total debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 0.08/0 0.00/0 Continued 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. CITY OF MOORPARK Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2001 2002 2003 2004 2005 S 2,421,104,221 $2,549,782,519 S 2,823,727,286 S 2,823,727,286 S 3,231,418,940 25% 25% 25% 25% 25% 605,276,055 637,445,630 705,931,822 705,931,822 807,854,735 15% 15% 15% 15% 15% 90,791,408 95,616,844 105,889,773 105,889,773 121,178,210 Source: City Finance Department Ventura County Tax Assessor's Office 127 244 Assessed valuation Conversion percentage Adjusted assessed valuation Debt limit percentage Debt limit Total net debt applicable to limit: General obligation bonds CITY OF MOORPARK Legal Debt Margin Information - Continued Last Ten Fiscal Years 2006 2007 2008 2009 2010 $ 3,721,591,791 S 4,157,360,033 S 4,558,597,806 S 4,700,305,496 $ 4,700,305,496 25% 25% 25% 25% 25% 930,397,948 1,039,340,008 1,139,649,452 1,175,076,374 1,175,076,374 15% 15% 15% 15% 15% 139,559,692 155,901,001 170,947,418 176,261,456 176,261,456 Legal debt margin Total debt applicable to the limit as a percentage of debt limit 1391559,692 155,901,001 170,947,418 176,261,456 176,261,456 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 vahuation 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 Assessors Office 128 245 CITY OF MOORPARK Pledgod- Revenue Coverage Last Ten Fiscal Years 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. 129 246 Tax Allocation Bonds Fiscal Year Ended Tax Debt Service June 30 Increment Principal Interest Coverage 2001 $ 2,501,624 $ 345,000 S 420,193 3.27 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 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. 129 246 CITY OF MOORPARK Demographic and Economic Statistics Last Ten Calendar Years Sources: (1) State Department of Finance or Community Development Department (2) Sperlines Best Places (3) State of California Employment Development Department (data shown is for the County) 130 247 Household Median Unemployment Calendar Population Income Household Rate Year (1) (in thousands) Income (2) (3) 2001 32,150 S 2,414,272 S 75,094 5.2% 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% Sources: (1) State Department of Finance or Community Development Department (2) Sperlines Best Places (3) State of California Employment Development Department (data shown is for the County) 130 247 CITY OF MOORPARK Principal Employers Current and Ten Years Ago "Total Employment" as used above represents the total employment of su employers located within City limits. The total number of employees within the City limits in 2010 were 16,896 as compared to the total number of employees within the City limits in 2000 were 16,324. Source: Chamber of Commerce City- data.com Bureau of Labor Statistics 131 248 2010 2000 Percent of Percent of Number of Total Number of Total Employer Employees Employment Employees Employment Moorpark Unified School District 825 4.88% 388 2.38% Moorpark College 750 4.44% 600 3.68% Pentair Pool Products 377 2.23% 252 1.54% Kavlico 350 2.07% 1,100 6.74% Target 150 0.89% - 0.00% Boething Tree Farm 145 0.86% 70 0.43% Vons 120 0.71% - 0.00% American Board Assembly 115 0.68% 90 0.55% General Optics 75 0.44% 50 0.31% Prudential Overall Supply 70 0.41% 50 0.31% "Total Employment" as used above represents the total employment of su employers located within City limits. The total number of employees within the City limits in 2010 were 16,896 as compared to the total number of employees within the City limits in 2000 were 16,324. Source: Chamber of Commerce City- data.com Bureau of Labor Statistics 131 248 CITY OF MOORPARK Full -time and Part-time City Employees by Function Last Ten Fiscal Years Function 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 General government 20 36 43 33 32 31 30 26 26 55 Public safety (crossing guards) 6 6 6 7 4 7 7 7 6 5 Public services 21 41 38 20 17 17 26 22 22 20 Parks and recreation 42 19 19 42 38 41 49 54 56 26 Total 89 102 106 102 91 96 112 109 110 106 Public safety ' 34 33 30 28 31 31 42 42 38 38 ' Police and fire services were provided by the County. Fire = 18 and police = 20 Source: City of Moorpark, Finance department 132 % e] CITY OF MOORPARK Operating Indicators by Function Last Ten Fiscal Years Prime calls and business inspections are for County of Ventura, Fire department station x#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 P.D.; parking citation data is not available for earlier years (B) Ventura County Fire Dept.; - some data not available for earlier years (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.; - recreation classes and room rentals began after the park opened 133 N Ui O 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Police:(A) Arrests 1,414 1,235 1,296 1,520 1,388 1,653 1,890 1,732 1,412 2,207 Parking citations issued 2,579 2,582 4,285 3,706 2,890 4,160 2,860 3,254 4,969 Fire: (B) Number of "prime" emergency call: 975 1,103 1,179 1,415 1,308 1,329 1,351 1,362 1,100 1,945 Business Inspections* 417 117 117 125 125 125 123 130 143 115 Public works: (C) Street resurfacing (miles) - - 73.33 - 0.10 - 30.0 3.8 - 5.0 Parks and recreation: (D) Number of recreation classes 423 386 317 290 364 338 479 378 265 419 Number of facility rentals 250 184 258 307 491 338 180 210 186 230 Prime calls and business inspections are for County of Ventura, Fire department station x#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 P.D.; parking citation data is not available for earlier years (B) Ventura County Fire Dept.; - some data not available for earlier years (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.; - recreation classes and room rentals began after the park opened 133 N Ui O Police: Stations Fire: Fire stations Public works: Streets (miles) Streetlights Traffic signals Parks and recreation: Parks Community centers CITY OF MOORPARK Capital Asset Statistics by Function Last Ten Fiscal Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 I 1 1 I I t 1 I 1 1 2 2 2 2 2 2 2 2 2 2 75 75 75 75 75 75 75 78 79 79 2,264 2,263 2,269 2,299 2,325 2,347 2,497 2,510 2,518 2,518 IS 15 16 17 17 17 17 20 20 20 14 15 15 15 15 16 16 16 17 18 2 2 2 2 2 2 2 2 2 2 Source: City of Moorpark Of the streetlights, 2,510 are owned by Edison and 8 are owned by the City 134 251 07RSTEAMAN. RAMIREZ 8 SMITH. INC Attachment 2 ( f I I r- i 0 1 u 8 1 C + c c o 0• 1 r 4 1 s December 7, 2010 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, 2010. In planning and performing our audit of the financial statements of the City for the year ended June 30, 2010, 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) Purchasing Policy 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 • Greg W Fankhanel. CPA • Dav-d M. Ramfrer CPA • Javier H Carr llo. CPA 252 4201 Brockton Ave Suite 100. R,vet side CA 92501 • 951.274.9500 • 951.274.7828 rti • www trscpas corn Attachment 2 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 and the establishment of adequate bidding documentation. (2) New Accounting Standards In February 2009, the Governmental Accounting Standards Board ( "GASB ") issued its Statement No. 54 entitled "Fund Balance Reporting and Governmental Fund Type Definitions," which will significantly change the reporting of fund balances and governmental fund types. The City will be required to implement this Statement as of the 20[0 -ll fiscal year. We recommend the City to take steps to determne how tars Statement will affect the City's financial statement presentation, and what action is necessary. The City may need to revise its chart of accounts and fund structure to comply with the new standard. Management Response: Management concurs with the recommendation and will research GASB 54 and determine which new account(s) to establish in order to comply with the statement. P) 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 fa)sificauon of docuwenis 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. 253 Attachment 2 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. 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 and will explore the feasibility of establishing an anonymous "fraud hotline" for: employees, citizens, vendors and the business community. The City will research other fraud prevention training programs in order to train new and existing staff. 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 254 07RsTEAMAN RAMIRE7 8 SMITH INC ctl•�r to 0�9' c •cco�. •� s December 7, 2010 Ron Ahlers, Finance Director City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 Dear Mr. Ahlers: Attachment 3 Based on the Schedule of Expenditures of Federal Awards that was prepared by the City as required by OMB Circular A -133 and our review of the expenditures, it appears that the City was below the $500,000 threshold in federal expenditures, and no Single Audit was required for fiscal year 2009/10. Sincerely, Greg Fankhanel Certified Public Accountant R -chard A feaman. CPA • Greg W Fankhanel. CPA • David M. Ramjrer. CPA • Javier H. Ca-110 c.PA 4201 Brockton Ave. Sete 100. Rverside CA 92501 • 951.274.9500 • 951.774 7898 -. • www.t,scpas com 255 '�'R Attachment 4 •' TEAM�1tV. RAMiREZ 8 SMfTH. INC C101- f0 Pu8,-( ACE0uaIA41S City Council City of Moorpark Moorpark, California Report on Internal Control Over Financial Reporting and on Compliance and Other NUtters Based on an Audit of Financial Statements Performed in Accordance with Governnwnt 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 (City) as of and for the year ended June 30, 2010, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 7, 2010. 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 intemal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in intemal 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 firee 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 Richard A Teaman. CPA • Greg W. Fanknanel. CPA • David M Ramirez, CPA • Javier H. Carr-11o. (,PA 256 4201 Brockton Ave. Suite 100, R,verside CA 92501 • 951.274.9500 • 951.274.7878 • www.irscpas.com Attachment 4 an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or outer 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 7, 2010. 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 7, 2010 257 7RSCI TE WAN. RAMIRE7 8 SMITH. 1NC Attachment 5 o r- r- t 0 I o B, -( r( (0 u li'- 4 r S 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, 2010. 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 X1llB of the California Constitution), were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XMB of the California Constitution. The City of Moorpark's management is responsible for the Appropriations Limit worksbeet. 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 finding's were as follows: 1. We obtained the completed worksbeets 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 41 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 NLIB 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 7, 2010 R.cha,d A. Teaman. CPA • Greg W Fankhanel. CPA • Davici M. Ramirez. CPA • laver H Ca,rillo. CPA 258 4201 Brockton Ave Suite 100. Riverside CA 92501 • 951.274.9800 • 951.274.7828 � • www.trscpas.com CITY OF MOORPARK APPROPRIATIONS LIMIT COMPUTATION 2009-2010 Non - Residential New Construction Population Change City Population Growth Non - Residential New Construction Change Converted to a Ratio Population Change Converted to a Ratio Calculation of Growth Factor 2008 - 2009 Appropriations Limit 2009 - 2010 Appropriations Limit (522,189,171 X 1.18070693) S 22,189,171 S 26,198,908 Attachment 5 2009-2010 16.59% 1.27% 1.1659 1.0127 1.18070693 259 07RSII,-AN R, M8, C 8SMIrH aI C f � ' � ' � t 0 � u D � - C � C (0 u a ' A � r S December 7, 2010 City Council City of Moorpark Moorpark, California Attachment 6 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, 2010. 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, 2010. Professional standards also require that we communicate to you the following information related to our audit. Significant 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. No new accounting policies were adopted and the application of existing policies was not changed during the year ended June 30, 2010. 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 Gom actual useful lives of each capitalized item. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Richard A Teaman. CPA • Greg W. Fankhanel. CPA • David M. Ramirez. CPA • Javier H. Carrillo. CPA 260 4201 Brockton Ave. Suite 100. Riverside CA 92501 • 951.274.9500 • 951.274.7828,A, • www.trscpas com Attachment 6 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 7, 2010. 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 Other information included in documents containing audited financial statements such as management's discussion and analysis is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We applied limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and we expressed no opinion on it. 261 Attachment 6 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, 262