HomeMy WebLinkAboutAGENDA REPORT 2017 0301 CCSA REG ITEM 10I ITEM 10.I.
CITY OF MOORPARK,CALIF°-P-A
City Council Meeting
MOORPARK CITY COUNCIL ® .3-/'a7o/rl
AGENDA REPORT ACTIrN• ��1 �!-
TO: The Honorable City Council
FROM: Ron Ahlers, Finance Director'2)1
DATE: February 22, 2017 (CC Meeting of March 1, 2017)
SUBJECT: Consider Annual Financial Statements and Other Audit Reports for
Fiscal Year Ended June 30, 2016
SUMMARY
The Comprehensive Annual Financial Report (CAFR), Independent Auditor's Report on
Internal Control Over Financial Reporting and on Compliance and Other Matters Based
on an Audit of Financial Statements Performed in Accordance with Government
Auditing Standards, Independent Accountant's Report on Agreed-Upon Procedures
Applied to Appropriations Limit Worksheets, Independent Auditor's memo regarding
significant audit matters and Housing Successor Fund Audited Financial Statements of
the City of Moorpark for June 30, 2016 are hereby submitted for Council approval.
BACKGROUND
The City is required to conduct an annual independent audit of its financial statements.
The audit firm of Rogers, Anderson, Malody & Scott, LLP, Certified Public Accountants
(RAMS) conducted the annual audit and with staff assistance prepared the required
financial statements. For the fiscal year ended June 30, 2016, the City received an
unqualified opinion. The City currently has five bond issues for which it is responsible
(two redevelopment bonds and three assessment district bonds). The bond proceeds
from these five issues have been spent in accordance with the bond documents.
AWARD
The Government Finance Officers Association of the United States and Canada
(GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to
the City for its comprehensive annual financial report for the fiscal year ended June 30,
2015. 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
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Achievement Program's requirements and we have submitted it to the GFOA to
determine its eligibility for another certificate.
DISCUSSION
CAFR
Attached for your approval are the annual financial statements for the year ended June
30, 2016 for the City of Moorpark. The financial statements are comprehensive and
include all of the fund types in the City.
The City Council engaged an independent certified public accounting firm, RAMS, to
perform the annual audit of the City of Moorpark and its component units. The results of
the audit performed are formally published in the CAFR. This report must satisfy both
Generally Accepted Accounting Principles (GAAP) and applicable legal requirements.
Additionally, the CAFR is sent out to numerous government agencies and financial
institutions in order to comply with various reporting, financial and subsequent bond
disclosure requirements. The overall financial picture of the City is presented, in
accordance to the Governmental Accounting Standards Board (GASB)
pronouncements, on a Government-wide basis. This is designed to provide readers with
a broad overview of the City's finances similar to a private-sector business. These
statements show the June 30, 2016 fiscal year balances and overall results of
operations for the period then ended, for all City funds, including the Successor Agency
to the Redevelopment Agency of the City of Moorpark (Successor Agency).
The CAFR statements are as follows:
Management's Discussion and Analysis (MD & A). This discussion and analysis starts
the financial section of the CAFR and serves as an executive summary. GAAP requires
that management provide this narrative introduction, overview and analysis to
accompany the basic financial statements. The letter of transmittal, which precedes the
MD & A in the introductory section, is designed to supplement the MD & A and should
be read in conjunction with it. The MD & A is found immediately following the report
from the independent auditors. The report from the auditors contains an opinion letter in
which an entity can receive basically 3 opinions; unqualified, qualified, and adverse. An
unqualified opinion from the auditors is the highest given. For the fiscal year ended June
30, 2016 audit, the City of Moorpark received an unqualified opinion.
The Statement of Net Position presents information on all of the City's assets and
liabilities, with the difference between the two reported as net position. Over time,
increases or decreases in net position (page 16) may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position
changed during the most recent fiscal year. All changes in net position are reported as
soon as the underlying event giving rise to the change occurs, regardless of the timing
of related cashflows. Thus, revenues and expenses are reported in this statement for
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some items that will only result in cash flows in future fiscal periods (e.g., earned but
unused vacation and sick leave). An increase in net position of $5.6 million was
reported for the fiscal year ended June 30, 2016 (page 17).
The government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental
activities). The governmental activities of the City include general government, public
safety, public services and parks and recreation.
Following the government-wide statements in the CAFR, the Balance Sheet, and the
Statement of Revenues. Expenditures and Changes in Fund Balances are presented for
all major and non-major governmental funds. A major fund is one of material
significance and is determined through prescribed calculations. The General Fund is
always considered a major fund by definition. Other governmental funds can be
declared major funds by management due to other factors, even if they fail the
qualifications resulting from the calculations. Non-major funds are all combined together
- for presentation. Reconciliations between these governmental statements and the
government-wide statements are also presented.
The Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net
Position are located on pages 26-27. The Successor Agency is a Private Purpose Trust
Fund and is recorded in these statements.
All of these statements are followed by the Notes to the Financial Statements on pages
28-70.
The Required Supplementary Information begins at page 71 and details the budget to
actual comparisons for all the major funds of the City, beginning with the General Fund.
The next section of the CAFR provides statements for each individual non-major
governmental fund. The governmental funds are presented in their various categories:
special revenue funds and capital project funds. Additionally, there is the budget to
actual comparisons for each non-major fund.
The last section of the CAFR contains statistical data about the City of Moorpark. This
section is prepared by staff and not reviewed by the auditors. All of the tables and
schedules present numerous facts about the City, many for the last 10 years. The
statistical facts include population figures, principal taxpayers, and assessed valuations
of taxable property to name a few.
The CAFR is posted on the City's website: http://www.MoorparkCA.gov
General Fund Financial Status
For fiscal year ended June 30, 2016, the General Fund unassigned fund balance totaled
$3 million, which equates to approximately 17% of operating expenses. The General
Fund had a surplus of $2,841,245 for this past year. Per Council policy the City
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transferred $2,841,245 from the General Fund to the Special Projects Fund at June 30,
2016. The reasons for the surplus are revenues were greater than estimated while
expenses were below appropriations.
Successor Agency to the Redevelopment Agency of the City of Moorpark
ABx1 26 was passed and signed by the Governor in the summer of 2011. The
California Supreme Court upheld the validity of ABx1 26 and thereby all redevelopment
agencies in the State, including the Redevelopment Agency of the City of Moorpark
(MRA), were dissolved as of January 31, 2012. The assets, liabilities and net position
(equity) were transferred from the MRA to the Successor Agency on February 1, 2012.
The Successor Agency is shown as a Private Purpose Trust Fund and is NOT a
governmental fund and NOT included in the Statement of Net Position or Statement of
Activities. The Successor Agency is a separate legal entity controlled by the Oversight
Board and the State Department of Finance. It is accounted for completely separate
from the City of Moorpark and shall remain so for the entire term of its existence. The
accounting for the Successor Agency is on pages 26-27 with explanatory notes on
pages 68-70 of the CAFR.
GASB 68 and the City's Retirement Plan
GASB 68, Accounting and Financial Reporting for Pensions, was recorded for the fiscal
year ending June 30, 2016. This is the second year the City has recorded the net
pension liability on the Statement of Net Position. There are three numbers on page 16
that are pension related: Deferred Outflow of Resources $2,846,763, Noncurrent
Liability Due in more than one year of $1,093,178 and Deferred Inflow of Resources
$3,371,515. These figures are broken down and explained in Note 7 (pages 49-58).
The simple fact is the City's liability for the pension plan is $1,093,178 (page 54). This
includes the $3.6 million contribution made by the City in January 2015.
Single Audit Report— (Report not required this year)
The City was not required to conduct a single audit this year because the City did not
meet the $750,000 federal grant expenditure threshold. The Single Audit is specifically
designed to meet the needs of all federal grantor agencies from which the City receives
funds.
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
The independent auditors noted no findings in this report for the fiscal year ended June
30, 2016.
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, 2016.
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Independent Auditor's memo regarding significant audit matters
The independent auditors noted no findings for the audit process for the fiscal year
ended June 30, 2016.
Housing Successor Fund Audited Financial Statements
Senate Bill 341 (SB 341) requires audited Financial Statements for the Housing
Successor Fund to be filed with the State of California.
STAFF RECOMMENDATION (Roll Call Vote)
Accept the Comprehensive Annual Financial Report (CAFR) and the Independent
Accountant's Report on Agreed-Upon Procedures Applied to Appropriations Limit
Worksheets and receive and file this report.
Attachments:
1. City of Moorpark CAFR for Fiscal Year Ending June 30, 2016
2. Independent Auditor's Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
3. Independent Accountant's Report on Agreed-Upon Procedures Applied to
Appropriations Limit Worksheets
4. Independent Auditor's memo regarding Significant Audit Matters
5. Housing Successor Fund Audited Financial Statements
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Attachment 1
CITY OF MOORPARK, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended June 30,2016
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Prepared By:
Ron Ahlers, Finance Director
Irmina Lumbad, Deputy Finance Director
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City of Moorpark
Table of Contents
Year Ended June 30, 2016
PAGE
I. INTRODUCTORY SECTION
Letter of Transmittal
Directory of City Officials vii
Organization Chart viii
Certificate of Achievement for Excellence in Financial Reporting ix
II. FINANCIAL SECTION
Independent Auditor's Report 1
Management's Discussion and Analysis 4
Basic Financial Statements:
Government-wide Financial Statements
Statement of Net Position 16
Statement of Activities 17
Fund Financial Statements
Balance Sheet-Governmental Funds 18
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position 21
Statement of Revenues, Expenditures, and Changes in Fund Balances-
Governmental Funds 22
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities 25
Statement of Fiduciary Net Position 26
Statement of Changes in Fiduciary Net Position 27
Notes to the Basic Financial Statements 28
Required Supplementary Information:
Required Supplementary Information -Budgetary Comparison Schedule-
Budget and Actual-General Fund 71
Required Supplementary Information -Budgetary Comparison Schedule-
Budget and Actual-Street and Traffic Safety Special Revenue Fund 74
Required Supplementary Information -Budgetary Comparison Schedule-
Budget and Actual—Assessments Districts Special Revenue Fund 75
Required Supplementary Information -Budgetary Comparison Schedule-
Budget and Actual—Parks/Public Facilities Special Revenue Fund 76
Required Supplementary Information -Budgetary Comparison Schedule-
Budget and Actual—Low-Mod Housing Asset Special Revenue Fund 77
Required Supplementary Information -Budgetary Comparison Schedule-
Budget and Actual—Community Development Special Revenue Fund 78
Required Supplementary Information -Budgetary Comparison Schedule-
Budget and Actual—Endowment Special Revenue Fund 79
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City of Moorpark
Table of Contents(continued)
Year Ended June 30,2016
PAGE
Required Supplementary Information-Continued:
Other Post-Employment Benefits-Schedule of Funding Progress 80
Schedule of the City's Proportionate Share of the Plan's Net Pension
Liability and Related Ratios as of the Measurement Date- Last 10 Years 81
Schedule of Plan's Contributions-Last 10 years 82
Notes to the Required Supplementary Information 83
Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual:
Police Facilities Fee Major Capital Projects Fund 84
Special Projects Major Capital Projects Fund 85
Non-Major Governmental Funds 86
Non-Major Governmental Funds-Combining Balance Sheet 88
Non-Major Governmental Funds-Combining Statement of Revenues,
Expenditures, and Changes in Fund Balance 94
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual:
Library Services Special Revenue Fund 100
Traffic Safety Special Revenue Fund 101
City Affordable Housing Special Revenue Fund 102
Tierra Rejada/Spring Road A.O.C. Special Revenue Fund 103
Casey/Gabbert A.O.C. Special Revenue Fund 104
Los Angeles A.O.C. Special Revenue Fund 105
State Gas Tax Special Revenue Fund 106
Art in Public Places Special Revenue Fund 107
State and Federal Assistance Special Revenue Fund 108
Local Transportation Transit Special Revenue Fund 109
Prop 1B Local Streets and Roads Special Revenue Fund 110
Solid Waste Special Revenue Fund 111
Capital Projects Capital Projects Fund 112
City Hall Building Capital Projects Fund 113
Equipment Replacement Capital Projects Fund 114
Statement of Changes in Fiduciary Assets and Liabilities-Agency Funds 115
III.STATISTICAL SECTION
Net Position by Component-Last Ten Fiscal Years 116
Changes in Net Position-Last Ten Fiscal Years 118
Fund Balances of Governmental Funds-Last Ten Fiscal Years 120
Changes in Fund Balances of Governmental Funds-Last Ten Fiscal Years 122
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City of Moorpark
Table of Contents(continued)
Year Ended June 30,2016
PAGE
III. STATISTICAL SECTION -Continued
Assessed Value and Estimated Actual Value of Taxable Property-
Last Ten Fiscal Years 124
Direct and Overlapping Property Tax Rates-Last Ten Fiscal Years 125
Principal Property Tax Payers-Current Year and Ten Years Ago 126
Secured Property Tax Levies and Collections- Last Ten Fiscal Years 127
Ratios of Outstanding Debt by Type-Last Ten Fiscal Years 128
Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years 129
Direct and Overlapping Debt 130
Legal Debt Margin Information-Last Ten Fiscal Years 131
Pledged Revenue Coverage-Last Ten Fiscal Years 133
Demographic and Economic Statistics-Last Ten Calendar Years 134
Principal Employers-Current and Ten Calendar Years Ago 135
Full-Time and Part-Time City Employees by Function-Last Ten Fiscal Years 136
Operating Indicators by Function-Last Ten Fiscal Years 137
Capital Asset Statistics by Function-Last Ten Fiscal Years 138
505
INTRODUCTORY SECTION
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F°per/ o Moot arAmamiCity
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799 Moorpark Avenue, Moorpark, California 93021 (805)517-6200 fax(805)532-2545
February 20, 2017
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, 2016. The City has
continued to prepare the CAFR to comply with the financial reporting model developed
by the Governmental Accounting Standards Board (GASB) Statement 34. This model
improves the financial reporting by adding significant additional information not
previously available in local government financial statements prior to GASB 34.
As a result of GASB 34, the Government-Wide Financial Statements are presented
along with the fund-by-fund financial information. The Government-Wide Financial
Statements include a Statement of Net Position that provides the total net position
(equity) of the City including infrastructures and the Statement of Activities that shows
the cost of providing government services. These statements include all assets and
liabilities using the accrual basis of accounting (similar to a private-sector business)
versus the modified accrual method used in the fund financial statements. A
Reconciliation of the Balance Sheet of the Governmental Funds to the Statement of Net
Position has been prepared to reflect the changes between the two reporting methods.
In addition, the reporting model includes an emphasis on the City's major funds as
shown in the Governmental Fund Statements. These statements and other significant
information are analyzed in the narrative section called Management's Discussion and
Analysis (MD&A). The MD&A provides "financial highlights" and a brief overview of the
basic financial statements. In addition, the MD&A provides the readers of the City's
financial statements with financial trends, explanation of variances and economic
factors for the upcoming fiscal year's budget.
Furthermore, in May 2004, the GASB issued Statement No. 44, Economic Condition
Reporting. This statement requires the statistical section to be presented with detailed
information, typically in ten-year trends, that assists users in utilizing the basic financial
statements, notes to basic financial statements, and required supplementary information
to assess the economic condition of a government. This statement was effective
starting with fiscal year 2005/06 and has resulted in changes to the statistical section.
The City continues to present the statistical section with detail information to be in
compliance with GASB No. 44 requirements for fiscal year 2015/16.
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JANICE S. PARVIN KEN SIMONS ROSEANN MIKOS DAVID POLLOCK MARK VAN DAM
Mayor Councilmember Councilmember Councilmember Mayor Pro Tern
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Responsibility for both the accuracy of this data, and the completeness and fairness of
its presentation, including all disclosures, rests with the City. To the best of our
knowledge and belief, the enclosed data are accurate in all material respects and are
reported in a manner that presents fairly the account groups and the financial position
and operational results of the City's various funds and component units. All disclosures
necessary to enable the reader to gain an understanding of the City's activities have
been included.
THE REPORTING ENTITY AND ITS SERVICES
The financial reporting entity includes all the funds of the City as well as all of its
component units. The City is the primary government. The component units are the
Moorpark Public Financing Authority (Authority) and the Moorpark Industrial
Development Authority (IDA).
The City was incorporated in 1983 as a general law city and operates under a Council-
Manager form of government.
The Authority was formed in 1993 as a joint powers authority between the City and the
Redevelopment Agency of the City of Moorpark (Agency) in order to provide financial
assistance to the City and the Agency by issuing debt and financing the construction of
public facilities. The Agency is now dissolved, but the Authority still continues to exist.
The IDA of the City was formed in 1985 pursuant to the California Industrial
Development Financing Act (the "Act"). Its purpose is to finance the acquisition and
development of certain industrial activities as permitted by the Act and to issue bonds
for the purpose of enabling industrial firms to finance the cost of such activities.
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF
MOORPARK
The Agency was formed in 1987 with the objective of providing long-term financing of
capital improvements designed to eliminate physical and economic blight in the
designated project area. On December 29, 2011, the California Supreme Court upheld
Assembly Bill 1 x 26 ("the Bill") that provides for the dissolution of all redevelopment
agencies in the State of California. The Bill provides that upon dissolution of a
redevelopment agency, the entity that established the redevelopment agency may elect
to serve as the "Successor Agency". The Successor Agency holds the assets of the
former redevelopment agency until they are distributed to other units of state and local
government after the payment of enforceable obligations that were in effect as of the
signing of the Bill. On January 4, 2012, the City elected to become the Successor
Agency. On February 1, 2012, the Agency was dissolved and the Successor Agency to
the Redevelopment Agency of the City of Moorpark (Successor Agency) was created.
The Successor Agency is included as a fiduciary fund (Private Purpose Trust Fund).
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PROFILE OF THE CITY OF MOORPARK
The City provides a full range of services to its residents with a total regular full-time
staff of approximately 50 and part-time staff of approximately 45 employees. Major
services such as police (contracted with Ventura County Sheriff), attorney, library,
development engineering and inspection, building and safety plan check/inspection,
transit, street sweeping and landscape maintenance are provided through contractual
arrangements. In addition, fire protection is provided by the Ventura County Fire
District. The City provides services such as emergency management, affordable
housing, economic development, planning, code compliance, recreation programs,
vector/animal control, park and facilities maintenance, street maintenance, city
engineering, crossing guard and administrative management services with city
employees.
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
Councilmembers 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 36,715 (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.
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INTERNAL CONTROLS
The City's management is responsible for developing and establishing an internal
control structure to ensure that the assets of the government are protected from loss,
theft, misuse and to ensure that adequate accounting data is compiled to allow for the
preparation of financial statements in conformity with GAAP. The internal control
structure is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that: 1) the cost
of a control should not exceed the benefits likely to be derived; and 2) the valuation of
the costs and benefits requires estimates and judgments by management.
ANNUAL AUDIT
An independent accounting firm has performed the annual audit of the City's financial
statements for the fiscal year ended June 30, 2016. 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 Independent 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 cif 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 2015/16 amounted to $33,297,505.
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, 2016, approximately $37 million was invested
with the Ventura County Pool; $70 million in various U.S. Treasury Notes, Agency
Securities and money markets; about $4 million in certificates of deposit; about $3
million in the State Treasurer's Local Agency Investment Fund (LAIF); and $1 million
was invested in demand deposits.
The cash management system of the City is designed to monitor revenues and
expenditures to ensure the investment of monies to the fullest extent possible. The
criteria for selecting investments and the order of priority are (a) safety, (b) liquidity, and
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(c) yield. The underlying objective of the City's policy is to obtain the highest interest
rate yields, and at the same time, ensure that money is available when needed and all
deposits are insured by the Federal Deposit Insurance Corporation or collateralized.
CAPITAL ASSETS
In accordance with GASB Statement No. 34, the City has reported all capital assets
including infrastructure in the Government-Wide Statement of Net Position. The City
elected to use the basic approach for all infrastructures reporting, whereby depreciation
expense and accumulated depreciation have been recorded. Capital assets for the
fiscal year ended June 30, 2016 have a net ending balance of$260 million.
LONG-TERM LIABILITIES/BONDED INDEBTEDNESS
At June 30, 2016, the City has no outstanding bonds or other debt but does have long-
term liabilities in the approximate amount of $1.7 million comprised of $600,619 for
employee compensated absences (accrued leave) and $1,093,178 in net pension
liability.
The City provides retirement benefits (pension) by contributing to the California Public
Employees Retirement System (CaIPERS). The City pays 100% of the Annual
Required Contributions (ARC), as calculated by CaIPERS. GASB 68 requires the City
to record net pension liability on the Statement of Net Position. This is the second year
the City has recorded a net pension liability and the impact is a reduction in net position
by $1,093,178 for June 30, 2016. In January 2015, the City made an extra contribution
of $3.6 million towards the net pension liability. Please read Note 7) DEFINED
BENEFIT PENSION PLAN for a discussion on the City's retirement plans and the net
pension liability.
The City participates in the California Employers' Retiree Benefit Trust (CERBT)
administered by CaIPERS to provide post-employment medical insurance to City
retirees. The City accounts for this liability, per GASB 45, Other Post-Employment
Benefits (OPEB). The most recent actuarial valuation was performed on June 30, 2015,
and shows the OPEB liability is 81% funded. The City contributed $644,768 in October
2015 to fully fund the OPEB liability. The City has a "Net OPEB Asset" of $670,768 on
the Statement of Net Position. Please read Note 8) OTHER POST EMPLOYMENT
BENEFITS in the CAFR.
The Successor Agency has the 2006 Tax Allocation Bonds (2006 Bonds) and the 2014
Tax Allocation Refunding Bonds (2014 Bonds). The 2006 Bonds and 2014 Bonds
outstanding principal as of June 30, 2016 were $11.5 million and $12.7, respectively.
The purpose of the 2006 bonds was to finance a portion of the costs of implementing
the Redevelopment Plan and fund redevelopment activities within the Agency project
area. In November 2014, the Successor Agency issued the 2014 Bonds to refund the
1999 Tax Allocation Refunding Bonds and the 2001 Tax Allocation Bonds. In July
2016, the Successor Agency issued the 2016 Tax Allocation Refunding Bonds (2016
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Bonds) to refund the 2006 Bonds. This transaction will be reflected in next year's report
(please read Note 14, SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO
THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK (SARA)).
RISK MANAGEMENT
The City is a member of the California Joint Powers Insurance Authority (CJPIA)
established under the provisions of California Government Code 6500 et seq.,
consisting of over 100 California public entities. The CJPIA provides risk coverage for
its members through the pooling of losses and purchased insurance. The coverage
extends to general liability and workers' compensation administered by CJPIA. In
addition, the City also participates in the all-risk property protection offered by CJPIA.
Various control techniques, including safety, ergonomic, harassment and driver
awareness training have been implemented to minimize losses.
AWARD
The Government Finance Officers Association of the United States and Canada
(GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to
the City for its Comprehensive Annual Financial Report for the fiscal year ended June
30, 2015. In order to be awarded a Certificate of Achievement, a government unit must
publish an easily readable and efficiently organized Comprehensive Annual Financial
Report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the Certificate of
Achievement Program's requirements and we are submitting it to the GFOA to
determine its eligibility for another certificate.
ACKNOWLEDGEMENT
We would like to express appreciation to all City staff that assisted and contributed to
the preparation of this report, particularly to the members of the Finance Department.
We would also like to extend our appreciation to the auditors, Rogers, Anderson,
Malody & Scott, LLP, Certified Public Accountants for their professional assistance. As
in the past, the CAFR is available on the City's website at www.MoorparkCA.gov.
Respectfully submitted,
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STEVEN KUENY RON AHLERS
CITY MANAGER FINANCE DIRECTOR
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Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2016
DIRECTORY OF CITY OFFICIALS
CITY COUNCIL
Janice S. Parvin, Mayor
Roseann Mikos, Councilmember David Pollock, Councilmember
Ken Simons, Councilmember Mark Van Darn, Mayor Pro Tern
CITY MANAGEMENT STAFF
Steven Kueny, City Manager
Deborah Traffenstedt, Assistant City Manager
David Bobardt, Community Development Director
Sean Corrigan, City Engineer/Public Works Director
Jeremy Laurentowski, Parks& Recreation Director
Ron Ahlers, Finance Director
-vii-
514
CITY OF MOORPARK
Arts ORGANIZATION CHART
Commission
1
Parks and Honorable City ( l
Rocroation -- Council City Attorney
Commission J (Contract)
I J
c r ,
Planning -1 City Manager
Commission
L
•
Library
Board / ,
Police Services
(Cuntracl) -
r Community \ Administrative r Parks;Recreation CityEngineer/ \ ! \'
E.Community Finance
Development Services Services Public Works Department
•
Department Department Department J Department
5- , ` ! t J
• Building and Safety • City Clerk • Art in Public Places • Assessment District Street • Cash Management
• Code Compliance • Human Resources • Parks and Landscape Lighting • Central Services
• Pemsts • Risk Management Maintenance - Capital Projects • Finance and Accounting
• Planning • Information Systems • Recreation • Crossing Guards • Fixed Assets Management
• Business Registration • Cable Television • Active Aduit Center • NPDES • Purchasing
• Economic Development • Legislative Relations • Open Space - Parking Enforcement • Franchise Administration
• Housing Programs • Public Information Maintenance - Street Maintenance • Budget Development&
• Intergovernmental • Facility Operations and - Transit Administration
Relations Maintenance • Successor Agency to the
• AnimalControWector • Property Management Redevelopment Agency
• Solid Waste&Recycling • Library
• Emergency Management
-Vili-
515
Oovemmen_t Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Moorpark
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2015
Af9044-1,
Executive Director/CEO
-ix-
516
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517
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FINANCIAL SECTION
518
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519
. ROGERS. ANDERSON, MALODY& SCOTT. LLP
1 : 1 V± = _
735 E.Carnegie Dr.Suite 100
San Bernardino.CA 92408
909 889 0871 T Independent Auditor's Report
909 889 5361 F
ramscpa.net
The Honorable City Council
City of Moorpark, California
Report on the financial statements
__ _ We have audited the accompanying financial statements of the governmental
activities, each major fund, and the aggregate remaining fund information of the
- - - - _ - City of Moorpark (City), California, as of and for the year ended June 30, 2016,
and the related notes to the financial statements, which collectively comprise the
City's basic financial statements as listed in the table of contents.
:.. - Management's responsibility for the financial statements
= Management is responsible for the preparation and fair presentation of these
= financial statements in accordance with accounting principles generally accepted
in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor's responsibility
Our responsibility is to express opinions on these financial statements based on
our audit. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable
to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements. The procedures selected
depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant
to the entity's preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances, but
_ not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
-1-
STABILITY. ACCURACY. TRUST. 520
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, 2016, and the respective changes in financial position thereof
for the year then ended in accordance with accounting principles generally accepted in the United States
of America.
Other matters
Required supplementary information
Accounting principles generally accepted in the United States of America require that management's
discussion and analysis, budgetary comparison information, OPEB schedule of funding progress,
schedule of the City's proportionate share of the plans' net pension liability and related ratios as of the
measurement date, and schedule of plan's contributions as listed in the table of contents be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, the combining and individual
nonmajor fund financial statements, the budgetary comparison schedules, and the statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and the budgetary comparison
schedules are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated in all
material respects in relation to the basic financial statements as a whole.
-2- -
521
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other reporting required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
February 20, 2017, on our consideration of the City's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering City's internal control over financial
reporting and compliance.
Kogers,Rndersorl,MQtod8&Scott,LLP
San Bernardino, CA
_ February 20, 2017
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523
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Management's Discussion and Analysis
524
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525
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2016
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, 2016. 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 2015/16
by $377,825,569 (Net Position). This amount is reflective of the entire City which
includes all funds. Of this amount, $23,579,878 is not restricted by external law
or administrative action for a specified purpose. The City Council's approval is
required before these funds may be used to meet the City's ongoing obligations
to citizens and creditors. GASB defines "Net Position" as assets less liabilities.
GASB requires the City to record infrastructure assets (streets, parks, buildings,
etc.) less accumulated depreciation as a restricted fund balance titled, "Net
Investment in Capital Assets" ($259,824,449). Restrictions for Special Revenue
Funds amounts to $94,421,242, this reduces the Total Net Position to the
Unrestricted Net Position ($23,579,878). The Statement of Net Position is
presented on page 16.
• The City's Total Net Position increased by $5,631,156 during the current fiscal
year. The Statement of Activities is presented on page 17.
• As of June 30, 2016, the City's governmental funds (General Fund, Special
Revenue Funds, Debt Service Funds, and Capital Projects Funds) reported
combined ending fund balances of $116,826,118, an increase of $6,901,615
from the prior year. The increase is a result of developer fee revenues due to
increased building activity within the City.
• At the end of the current fiscal year, fund balances for the General Fund were
$3,020,302 ($154,863 is in nonspendable form, and $2,865,439 is unassigned).
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic
financial statements. The City's basic financial statements are comprised of three
components:
1) Government-wide financial statements
2) Fund financial statements
3) Notes to the basic financial statements
-4-
526
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30,2016
Other required supplementary information is included in addition to the basic financial
statements.
Government-Wide Financial Statements. The City has presented its financial
statements under the reporting model required by Governmental Accounting Standards
Board Statement No. 34 (GASB 34) and its related Statements, GASB 37, 38, and 41.
These financial statements are designed to provide readers with a broad overview of
the City's finances, in a manner similar to a private-sector business.
The government-wide financial statements include the statement of net position and the
statement of activities.
The governmental activities of the City include general government, public safety, public
services, parks and recreation, debt service, and interest on debt. The City does not
have any business-type activities.
The statement of net position presents information on all of the City's assets, deferred
outflows of resources, liabilities, and deferred inflows of resources, with the difference
between the two reported as net position. Over time, increases and decreases in net
position may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
The statement of activities presents information showing how the City's net position
changed during the most recent fiscal year. All changes in net position are reported as
soon as the underlying event giving rise to the change occurs, regardless of the timing
of related cash flows. Thus, revenues and expenditures are reported in this statement
for some items that will only result in cash flows in future fiscal periods (i.e., uncollected
taxes and earned but unused vacation leave).
The government-wide financial statements include not only the City as the primary
government, but also a legally separate Moorpark Public Financing Authority (Authority),
and the Industrial Development Authority (IDA) of the City. Although legally separate
from the City, these component units are blended with the primary government because
of their governance or financial relationships to the City.
The Redevelopment Agency of the City of Moorpark (Agency) was dissolved on
February 1, 2012 as legislated in Assembly Bill x1 26. Its Successor Agency is shown
as a Private Purpose Trust Fund (pages 26-27).
The government-wide financial statements can be found on pages 16 and 17 of this
report.
Fund Financial Statements. A fund is a grouping 'of related accounts that is used to
maintain control over resources that have been segregated for specific activities or
-5-
527
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30,2016
objectives. The City, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the City can be divided into two categories: governmental funds and fiduciary
funds.
Governmental Funds. Governmental Funds are used to account for essentially the
same functions reported as governmental activities in the government-wide financial
statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating the City's near-term financial
requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government- _
wide financial statements. By doing so, readers may better understand the long-term
impact of the City's near-term financing decisions. Both the governmental fund balance
sheet and the governmental fund statement of revenues, expenditures and changes in
fund balances, provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains a variety of individual governmental funds. Information is presented
separately in the governmental funds balance sheet and in the governmental funds
statement of revenues, expenditures, and changes in fund balances for the General
Fund, Street and Traffic Safety, Assessment Districts, Parks/public Facilities, Low and
Moderate Income Housing Asset, Community Development, Endowment, Police
Facilities Fee, and Special Projects. All of which are considered to be major funds.
Data from the remaining governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements in the non-major governmental funds
section of this report.
The City adopts an annual budget for all its funds. A budgetary comparison statement
is provided for all funds with an annually adopted budget to demonstrate compliance
with their respective budgets. The budgetary comparison statements are located in the
basic financial statements. The non-major governmental fund budgetary comparisons
are located in the non-major governmental funds section of the report.
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528
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2016
Fiduciary Funds. Fiduciary funds, which consist solely of trust and agency funds, are
used to account for resources held for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government-wide financial statements because
the resources of the fund are not available to support the City's own programs.
Fiduciary funds are custodial in nature and, therefore, the accounting used does not
involve the measurement of the results of operations. The basic fiduciary fund financial
statement can be found on pages 26-27 of this report. The assets, liabilities, fund
equity and operations of the dissolved Agency were transferred to the "Successor
Agency-Private Purpose Trust Fund".
Notes to the Basic Financial Statements. The notes to the basic financial statements
provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the basic
financial statements can be found on pages 28-70 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The City has continued to present its financial statements under the reporting model
required by GASB. A comparative analysis of the government-wide data has been
included in this report.
As noted earlier, net position may serve over time as a useful indicator of a
government's financial position. In the case of the City, assets exceeded liabilities by
$378 million at the close of the current fiscal year.
The City's net investment in capital assets, net of related debt reflects a,positive $260
million. As shown on Table 1, the largest portion of the City's net position (69%) is its
investment in capital assets. The City uses these capital assets (parks, streets,
sidewalks, rights of way, etc.) to provide services to citizens; consequently, these assets
are not available for future spending.
An additional portion of the City's net position (25%) represents resources that are
subject to external restrictions on how they may be used. The major restrictions on net
position are funding source restrictions. The remaining balance of total net position
(6%) is unrestricted and may be used to meet the City's obligations to citizens and
creditors in accordance with the finance-related legal requirements reflected in the
City's fund structure. At the end of the fiscal year ended June 30, 2016, the City
reported positive balances in all three categories of net position, both for the City as a
whole, as well as for its separate governmental activities.
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529
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30,2016
Table 1
Net Position
Governmental Activities
As of June 30,2016 and 2015
2016 2015
Assets:
Current and other assets $ 123,270,061 $ 117,169,350
Capital Assets 259,824,449 260,051,061
Total Assets: 383,094,510 377,220,411
Deferred Outflows of Resources:
Pension related 2,846,763 4,505,847
Liabilities:
Other liabilities 4,744,189 7,994,979
Total Liabilities: 4,744,189 7,994,979
Deferred Inflows of Resources:
Pension related 3,371,515 1,536,866
Net Position:
Net invested in capital assets 259,824,449 260,051,061
Restricted 94,421,242 89,500,647
Unrestricted 23,579,878 22,642,705
Total Net Position,as restated $ 377,825,569 $ 372,194,413
The City's net position increased by $5.6 million during the current fiscal year as a result
of increase development activity within the City.
•
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530
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30,2016
Changes in Net Position
Governmental Activities
For the Years Ended June 30,2016 and 2015
2016 2015
Revenues:
Program Revenues:
Charges for services $ 10,061,140 $ 18,380,410
Operating contributions and grants 3,943,429 4,049,606
Capital contributions and grants 2,014,302 4,636,843
General Revenues:
Property taxes, levied for general purposes 7,923,937 7,638,300
Franchise taxes - 1,276,932 1,284,268
Sales taxes 3,316,402 2,749,320
Sales taxes in lieu 730,083 896,527
Motor vehicle in lieu tax, unrestricted - 15,399
Investment income 2,447,983 1,116,545
Other - 1,607,108 685,569
Total Revenues: 33,321,316 41,452,787
Expenses:
General government 795,772 1,212,685
Public safety 7,614,298 7,024,242
Public services 12,162,933 11,558,575
Parks and recreation 7,117,157 5,614,080
Total Expenses: 27,690,160 25,409,582
Increase in net position 5,631,156 16,043,205
Net position, beginning of year 372,194,413 356,151,208
Net position,end of year $ 377,825,569 $ 372,194,413
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531
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2016
Program Revenues
Capital
Contributions and
Grants,17%
Charges for
Services,68%
Operating
Contributions and
Grants,15%
General Revenues
Investment income,
g% Other,5%
1
Motor vehicle in lieu
tax,0% \\I Property tax,53%
4141414
Sales tax in lieu,6%J
Sales tax,19%
Franchise fee,9%
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532
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30,2016
FINANCIAL ANALYSIS OF THE CITY'S MAJOR FUNDS
As noted earlier, the City uses fund accounting to demonstrate compliance with finance-
related legal requirements.
Governmental Funds. The focus of the City's governmental funds is to provide
information on near-term inflows, outflows, and net resources. Such information is
useful in assessing the City's current financial requirements or its liquidity. GASB 54
requires fund balance classifications that focus on the constraints on the use of
resources and the source of the constraints. The five (5) fund balance categories are:
Nonspendable — net resources that cannot be spent because of their form
or those resources that should be maintained intact
Restricted — amounts constrained to specific purpose by external
providers, by law through constitutional provisions or by enabling
legislation
Committed — funds are limited to a specific purpose by government itself
through resolution or ordinance
Assigned — resources intended for a specific purpose by the governing
body or official delegated by the governing body
Unassigned — represents the General Fund net residual fund balance
available for any purposes and other governmental funds in a
deficit position.
As of the end of the current fiscal year, the City's governmental funds reported total fund
balances of $116,826,118. This is an increase of $6,901,615 in comparison with the
prior year. $154,863 is nonspendable, $66,039,589 or 56% is restricted to specific
purpose, $736,185 or 1% is committed, $48,533,700 or 41% is assigned and
$1,361,781 or 2% of the fund balances constitutes unassigned fund balance.
General Fund
The General Fund is the chief operating fund of the City. At the end of the current fiscal
year, the total fund balance of the General Fund was $3,020,302, which decreased by
$639,716 over prior year. As a measure of the General Fund's liquidity, it may be useful
to compare total fund balance to total fund expenditures. Total fund balance represents
17% of total General Fund expenditures and transfers out. This is a healthy reserve.
Key factors for revenues and expenses when compared to fiscal year 2014/15 are as
follows:
• The City's property tax revenues increased by $285,637 or 3.6%.
• Sales tax revenues increased by approximately $567,082 or 20.6% as a result of
the "triple flip" reconciliation. Sales tax allocation reverted to the full 1% Bradley-
burns rate because of the mid-year cessation of the "triple flip". When combined
with the "triple flip", total sales tax increased by $400,638 or 11%.
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533
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2016
• The Sales Tax Compensation or "triple flip" decreased by $166,444 or 18.6%.
This revenue ceased mid-year from the State and is now allocated to Sales Tax
(see above).
• Interest earnings increased by $442,497 or 175.3% due to market value gains.
• Expenditures and transfers out ended the year approximately $34,118 or 0.2%
less than the prior year figure.
Street and Traffic Safety Fund (Includes the Traffic System Management Fund,
City-Wide Traffic Mitigation Fund and Crossing Guard Fund)
The fund balance of the Street and Traffic Safety Fund increased by $1.5 million due to
fees and interest income of$2.1 million and expenditures of$576,097.
Assessment District Fund
The fund balance of the Assessment District Fund increased by $15,933 from the prior
year. Increasing conservation helped reduce operating costs of water and landscaping.
Parks/Public Facilities Fund
The fund balance of the Parks/Public Facilities Fund increased by $1.5 million this year
due to revenues of$1.7 million and very minor expenditures of$128,598.
Low and Moderate Income Housing Asset Fund
The City elected to become the Successor Housing Agency and created the Low and
Moderate Income Housing Asset Fund for this purpose. There was little activity this
past year.
Community Development Fund
This fund experienced a 23% decrease in fees and activities due to charges for
processing new housing development within the City, occurring in prior years though
construction continues.
Endowment Fund
The fund balance of the Endowment Fund increased by $756,063 from FY 2014/15.
This is due to development fee revenue exceeding expenditures.
Police Facilities Fee Fund
The fund balance of the Police Facilities Fund improved by $101,011 from the prior
year. These funds are derived from new construction fees and transferred to the
Endowment Fund as payback for the loan to construct the Police Services Center.
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534
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2016
Special Projects Capital Projects Fund
Per City Council Policy, the General Fund transferred fund balance in excess of $3
million to the Special Projects Capital Projects Fund. This amount was $2.8 million this
past year. The June 30, 2016 fund balance is about $27.2 million.
Non-Major Governmental Funds
The fund balance of all other Non-Major Governmental Funds grew by $1.1 million from
the previous fiscal year due to fees exceeding the expenditures.
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 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, 2016, were revenues
exceeding expenditures by approximately $5.1 million of which $2.8 million which was
transferred to the Special Projects Fund. Revenues plus Transfers In were $2,055,216
more than the final budget and expenditures plus Transfers Out ended the year under
budget (final) by $2.1 million. During the fiscal year, the City Council appropriated an
additional $2.2 million in the General Fund expenses for prior year projects and
purchase orders along with funding new projects. The City has a history of not
spending the entire appropriation, this along with the additional appropriation created
the under budget of$2.1 million noted above.
CAPITAL ASSET AND LONG-TERM LIABILITIES
Capital Assets. The City's investment in capital assets as of June 30, 2016, amounted
to $260 million (net of accumulated depreciation). This investment, detailed in Table 3,
includes land, rights of way, construction in progress, buildings and improvements,
machinery and equipment, and infrastructure. The total decrease in the City's
investment in capital assets for the current fiscal year was $0.2 million.
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535
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30,2016
2016 2015
Land $ 41,966,406 $ 41,079,642
_ Rights of Way 123,302,765 123,066,830
Construction in Progress 12,120,583 12,015,023
Buildings and improvements 26,365,877 26,662,019
Machinery and equipment 3,229,119 2,440,750
Infrastructure 52,839,699 54,786,797
Total $ 259,824,449 $ 260,051,061
•
GASB 34 requires the City account for infrastructure assets on its financial statements.
The accompanying government-wide financial statements include those infrastructure
assets that were either completed during the current fiscal year or considered
construction in progress at current fiscal year-end.
Additional information on the City's capital assets can be found in Note 5 on page 48 of
this report.
Long-term Liabilities
At the end of the current fiscal year, the City's long-term liabilities outstanding are
$1,693,797, which are the net pension liability ($1,093,178) and the employee
compensated absences payable ($600,619). The City implemented GASB 68,
Accounting and Financial Reporting for Pensions, in the prior fiscal year. In January
2015, the City contributed $3.3 million to pay down the net pension liability. Additional
information on the City's long-term liabilities can be found in Note 6 on page 49 of the
basic financial statements. Note 7, Defined Benefit Pension Plan, discloses the pension
plan data according to GASB 68.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The slow economic recovery in conjunction with the rising costs of police services and
utilities and the ultra-low interest rate environment combined to cause strains in the
City's General Fund. Certain costs continue to outpace the growth seen in major
General Fund revenues such as property and sales tax, including increases in pension
costs, parks and landscape maintenance and the Ventura County Sheriffs Contract.
There is also an increasing need for the General Fund to partially support services that
in the past were self-supporting or required a lower General Fund contribution such as:
street lighting, landscaping, engineering and planning services.
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536
City of Moorpark
Management's Discussion and Analysis
Year Ended June 30, 2016
The State's "Triple Flip" payment plan ceased this past year as the State repaid the $15
billion deficit reduction bonds. The impact to the City was on cash flow during FY
2015/16 and the restoration of the full 1% of Bradley-Burns Sales Tax. This did not
have any impact on the revenue the City receives from the State.
The City has additional protections from the State taking our monetary resources as a
result of the passage of Proposition 22 in November 2010. However, on July 29, 2011,
the Governor of the State of California signed Assembly Bills x1 26 (ABx1 26) and on
December 29, 2011, the California Supreme Court issued their ruling upholding the
constitutionality of ABx1 26; thereby all redevelopment agencies within the State of
California are abolished.
For fiscal year 2016/17, the City took into consideration the following factors in
preparing the budget:
• Sales Tax revenues assume a minor increase from fiscal year 2015/16.
• Property Tax and Vehicle License Fees revenue are projected to increase
slightly.
• Interest income will remain stable at an average rate of return of just over 1%.
• Increase of 0.374% in PERS employer retirement rate from 8.003% to 8.377%
effective July 1, 2016. This rate is projected to increase by 1% each year for the
foreseeable future.
• Increase in employee compensation from a general 1% cost of living adjustment
and increases in medical insurance premiums.
• Projections indicate our cost for general liability and workers compensation
insurance will both slightly increase for fiscal year 2016/17 when compared to
fiscal year 2015/16 actual payments.
A priority of the City is to maintain high quality of services while adopting a balanced
budget. As in prior years, the fiscal year 2016/17 budget as adopted by the City Council
is a balanced budget and will serve as a guide in planning for the future.
REQUESTS FOR INFORMATION
This management's discussion and analysis is designed to provide citizens, taxpayers,
customers, investors, and creditors with a general overview of the City's finances and to
demonstrate the City's accountability for the money it receives. If you have questions or
need additional financial information, please contact the Finance Department at City
Hall, 799 Moorpark Avenue, Moorpark, CA 93021, or at www.MoorparkCA.gov.
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I
05)0111 _
I. 441PP tt
IN.
AOA )-E D J0V
BASIC FINANCIAL STATEMENTS
539
City of Moorpark
Statement of Net Position
June 30, 2016
Governmental
Activities
ASSETS
Cash and investments $ 109,695,830
Receivables,net:
Accounts 2,124,582
Interest 458,837
Prepaid items 60,899
Net OPEB asset 670,768
Property held for resale 8,096,221
Long term notes receivables 2,162,924
Capital assets, net of accumulated depreciation
Non-depreciable 178,709,102
Depreciable,net of accumulated depreciation
Buildings and improvements 26,365,877
Machinery and equipment 3,229,119
Infrastructure 51,520,351
Total assets 383,094,510
DEFERRED OUTFLOWS OF RESOURCES
Pension related 2,846,763
LIABILITIES
Accounts payable and accrued liabilities 2,663,280
Unearned revenue 387,112
Noncurrent liabilities:
Due within one year 322,120
Due in more than one year 1,371,677
Total liabilities 4,744,189
DEFERRED INFLOWS OF RESOURCES
Pension related 3,371,515
NET POSITION
Net investment in capital assets 259,824,449
Restricted for:
Public services 52,376,575
Recreation services 5,845,746
Public safety 23,291,513
Housing activities 12,907,408
Unrestricted 23,579,878
Total net position $ 377,825,569
The accompanying notes are an integral part of these financial statements.
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540
City of Moorpark
Statement of Activities
Year Ended June 30, 2016
Program Revenues
Operating Capital Net
Charges for Contributions Contributions Governmental
Functions/Programs Expenses Services and Grants and Grants Activities
Primary Government
Governmental activities:
General government $ 795,772 $ 685,537 $ - $ - $ (110,235)
Public safety 7,614,298 1,970,207 - - (5,644,091)
Public services 12,162,933 5,026,698 3,943,429 2,014,302 (1,178,504)
Parks and recreation 7,117,157 2,378,698 - - (4,738,459)
Total governmental activities 27,690,160 10,061,140 3,943,429 2,014,302 (11,671,289)
Total primary government $ 27,690,160 $ 10,061,140 $ 3,943,429 $ 2,014,302
General revenues:
Taxes:
Property tax,levied for general purpose 7,923,937
Franchise fee 1,276,932
Sales tax 3,316,402
Sales tax in lieu 730,083
Investment income 2,447,983
Other 1,607,108
Total general revenues 17,302,445
Change in net position 5,631,156
Net position,beginning of year 372,194,413
Net position,end of year $ 377,825,569
•
The accompanying notes are an integral part of these financial statements.
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City of Moorpark
Balance Sheet—Governmental Funds
June 30, 2016
Special Revenue
Street and Assessment
General Traffic Safety Districts
ASSETS
Cash and investments $ 2,450,970 $ 23,169,645 $ 5,254,757
Receivables:
Accounts 1,487,104 51,684 42,691
Interest - - -
Notes and loans - - -
Due from other funds 95,716 - -
Prepaid items 59,147 1,752 -
Property held for resale - - -
Total assets $ 4,092,937 $ 23,223,081 $ 5,297,448
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 1,028,986 $ 99,137 $ 185,922
Due to other funds - - -
Unearned revenues 43,649 - -
Total liabilities 1,072,635 99,137 185,922
Deferred inflows of resources: •
Unavailable revenues - - -
Deferred loans - - -
Total deferred inflows of resources - - -
Fund balances:
Nonspendable 154,863 - -
Restricted - 23,123,944 5,111,526
Committed - - -
Assigned - -
Unassigned 2,865,439 - -
Total fund balances(deficit) 3,020,302 23,123,944 5,111,526
Total liabilities,deferred inflows of
resources and fund balances $ 4,092,937 $ 23,223,081 $ 5,297,448
The accompanying notes are an integral part of these financial statements.
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Continued
Capital
Special Revenue Projects
Low-Mod Police
Parks/Public Income Community Facilities
Facilities Housing Asset Development Endowment Fee
$ 6,739,029 $ 208,627 $ 942,043 $ 12,957,363 $ 914
40,158 477 2,096 25,828 164
251,671 - - -
-
1,789,968 - 6,500 -
- - - 1,327,631 -
-
7,518,873 - - -
$ 6,779,187 $ 9,769,616 $ 944,139 $ 14,317,322 $ 1,078
$ 1,663 $ 411 $ 944,238 $ 655 $ -
919,874 - - - 1,327,631
11,904 10,000 - - -
933,441 10,411 944,238 655 1,327,631
-
2,041,639 - 6,500 -
-
2,041,639 - 6,500 -
5,845,746 7,717,566 - - -
- - - 14,310,167 -
- - (99) - _ (1,326,553)
5,845,746 7,717,566 (99) 14,310,167 (1,326,553)
$ 6,779,187 $ 9,769,616 $ 944,139 $ 14,317,322 $ 1,078
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City of Moorpark
Balance Sheet—Governmental Funds (continued)
June 30, 2016
Capital
Projects _
Non-major Total
Special Governmental Governmental
Projects Funds Funds
ASSETS
Cash and investments $ 26,218,568 $ 31,753,914 $ 109,695,830
Receivables:
Accounts - 474,380 2,124,582
Interest 23,987 183,179 458,837
Notes and loans - 366,456 2,162,924
Due from other funds 919,874 177,006 2,520,227
Prepaid items - - 60,899
Property held for resale - 577,348 8,096,221
Total assets $ 27,162,429 $ 33,532,283 $ 125,119,520
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ 402,268 $ 2,663,280
Due to other funds - 272,722 2,520,227
Unearned revenues - 321,559 387,112
Total liabilities - 996,549 5,570,619
Deferred inflows of resources:
Unavailable revenues - 125,009 125,009
Deferred loans - 549,635 2,597,774
Total deferred inflows of resources - 674,644 2,722,783
Fund balances:
Nonspendable - - 154,863
Restricted - 24,240,807 66,039,589
Committed •
- 736,185 736,185
Assigned 27,162,429 7,061,104 48,533,700
Unassigned - (177,006) 1,361,781
Total fund balances(deficit) 27,162,429 31,861,090 116,826,118
Total liabilities, deferred inflows of
resources and fund balances $ 27,162,429 $ 33,532,283 $ 125,119,520
The accompanying notes are an integral part of these financial statements.
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545
City of Moorpark
Reconciliation of the Balance Sheet of
Governmental Funds to the Statement of Net Position
June 30, 2016
Fund balances of governmental funds $ 116,826,118
Amounts reported for governmental activities in the Statement of Net
Position are different because:
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds. 259,824,449
Long-term notes and loans receivable are not current financial resources and,
therefore,are deferred inflows in the governmental funds. 2,597,774
Revenues reported as unavailable revenue in the governmental funds are
recognized in the Statement of Activities.The availabity criteria does not apply
to the government-wide statements. 125,009
Long term liabilities are not due and payable
in the current period and,therefore,are not reported in funds.
Compensated absences payable (600,619)
Net pension liability (1,093,178)
Governmental funds report all other Post Employment Benefits(OPEB)contributions
as expenditures, however, in the Statement of Net Position,any excess or deficientcies
in contributions in relation to the Annual Required Contribution(ARC)are reported
as an asset or liability.The City has contributed more than the required ARC to the
retiree medical plan and reports the OPEB obligation as an asset. 670,768
Deferred inflows and outflows of resources related to pensions are not
reported in the governmental funds:
Net deferred inflows of resources (3,371,515)
Net deferred outflows of resources 2,846,763
Net position of governmental activities $ 377,825,569
The accompanying notes are an integral part of these financial statements.
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City of Moorpark
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2016
Special Revenue
Street and Assessment
General Traffic Safety Districts
REVENUES
Taxes $ 13,247,354 $ - $ -
Licenses and permits 201,124 - -
Fines and forfeitures 256,651 - -
Use of money and property 998,120 550,540 118,848
Charges for services 1,249,329 1,562,060 6,930
Intergovernmental 106,699 - -
Maintenance assessments - - 2,737,711
Other revenue 1,097,489 100 2,285
Total revenues 17,156,766 2,112,700 2,865,774
EXPENDITURES
Current:
General government 1,361,720 - -
Public safety 6,599,431 - -
Public services 2,024,451 461,220 382,718
Parks and recreation 1,960,319 - 4,129,031
Capital outlay 63,741 114,877 6,398
Debt service:
Interest - - -
Total expenditures 12,009,662 576,097 4,518,147
Excess(deficiency)of revenues
over(under)expenditures 5,147,104 1,536,603 (1,652,373)
OTHER FINANCING SOURCES(USES)
Transfers in - - 1,668,306
Transfers out (5,786,820) (54,036) -
Total other financing sources(uses) (5,786,820) (54,036) 1,668,306
Net change in fund balances (639,716) 1,482,567 15,933
Fund balances(deficit), beginning of year 3,660,018 21,641,377 5,095,593
Fund balances(deficit),end of year $ 3,020,302 $ 23,123,944 $ 5,111,526
The accompanying notes are an integral part of these financial statements.
-
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Continued
Capital
Special Revenue Projects
Low-Mod Police
Parks/Public Income Community Facilities
Facilities Housing Asset Development Endowment Fee
$ $ - $ $ $ -
- - 908,012 - -
- 1,110 - -
147,941 4,590 - 390,265 1,392
1,518,009 19,800 851,775 1,310,186 99,619
- - 23,529 -
-
246 54,298 - -
1,665,950 24,636 1,815,195 1,723,980 101,011
- 85 - - -
45,040 17,892 2,480,939 56,140 -
83,558 - 540 911,777 -
22,082 - - -
128,598 40,059 2,481,479 967,917 -
1,537,352 (15,423) (666,284) 756,063 101,011
89,309 666,185 - -
(17,115) - - - -
(17,115) 89,309 666,185 - -
1,520,237 73,886 (99) 756,063 101,011
4,325,509 7,643,680 - 13,554,104 (1,427,564)
$ 5,845,746 $ 7,717,566 $ (99) $ 14,310,167 $ (1,326,553)
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City of Moorpark
Statement of Revenues, Expenditures,and Changes in Fund Balances
Governmental Funds (continued)
Year Ended June 30, 2016
Capital
Projects
Non-major Total
Special Governmental Governmental
Projects Funds Funds
REVENUES
Taxes $ - $ 1,169,655 $ 14,417,009
Licenses and permits - - 1,109,136
Fines and forfeitures - 213,923 471,684
Use of money and property - 756,879 2,968,575
Charges for services - 1,503,813 8,121,521
Intergovernmental - 3,453,779 3,584,007
Maintenance assessments - - 2,737,711
Other revenue - 289,387 1,443,805
Total revenues - 7,387,436 34,853,448
EXPENDITURES
Current:
General government 61,369 - 1,423,174
Public safety - 400,130 6,999,561
Public services - 3,786,064 9,254,464
Parks and recreation - - 6,089,350
Capital outlay - 2,982,311 4,163,202
Debt service:
Interest - - 22,082
Total expenditures 61,369 7,168,505 27,951,833
Excess(deficiency)of revenues
over(under)expenditures (61,369) 218,931 6,901,615
OTHER FINANCING SOURCES(USES)
Transfers in 2,841,245 850,188 6,115,233
Transfers out (257,262) - (6,115,233)
Total other financing sources(uses) 2,583,983 850,188 -
Net change in fund balances 2,522,614 1,069,119 6,901,615
Fund balances(deficit), beginning of year 24,639,815 30,791,971 109,924,503
Fund balances(deficit), end of year $ 27,162,429 $ 31,861,090 $ 116,826,118
The accompanying notes are an integral part of these financial statements.
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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, 2016
Net change in fund balance-total governmental funds $ 6,901,615
Amounts reported for governmental activities in the Statement of Activities are
different because:
Governmental funds report capital outlays as expenditures. However,in the
Statement of Activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense.Asset deletions also affect
the amounts reported in the statement of activities.This activity is reconciled
as follows:
Capital outlays and other capital expenditures $ 3,270,308
Depreciation expense (3,455,439)
Capital assets deletions,net of accumulated depreciation (41,481) (226,612)
Long-term notes and loans receivable are reported as expenditures when made and
as a revenue when repaid in the governmental funds.However,there is no impact in the
Statement of Activities when these notes and loans are made or repaid.This amount
represents the net change in the long term notes and loans receivable. 34,587
Revenues that are measurable but not available are not recorded as revenues under the
modified accrual basis of accounting in the governmental funds. (1,532,132)
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and,therefore,are not reported as expenditures in governmental funds.
Decrease in compensated absences 48,739
Increase in OPEB asset 561,768
Pension expense net adjustments (156,809)
Change in net position of govemmental activities $ 5,631,156
The accompanying notes are an integral part of these financial statements.
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City of Moorpark
Statement of Fiduciary Net Position
June 30, 2016
Successor Agency
Private-Purpose Agency
Trust Fund Fund
ASSETS
Cash and investments $ 2,416,187 $ 4,579,000
Cash and investments with fiscal agent 3,534,914 4,807,733
Receivables, net:
Accounts - 112
Prepaid insurance premium 265,060 -
Land held for resale 11,402,135 -
Construction in progress 119,736 -
Capital assets, net of accumulated depreciation 8,920,459 -
Total assets 26,658,491 $ 9,386,845
LIABILITIES
Accounts payable 238,380 $ 95,051
General deposits - 4,484,061
Bonds payable-due within one year 775,000 -
Bonds payable-due in more than one year 23,380,000 -
Amortizable charges-debt related 248,121 -
Due to bondholders - 4,807,733
Total liabilities 24,641,501 $ 9,386,845
NET POSITION
Held in trust for the Successor Agency $ 2,016,990
The accompanying notes are an integral part of these financial statements.
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City of Moorpark
Statement of Changes in Fiduciary Net Position
Private-Purpose Trust Fund
Year Ended June 30, 2016
Successor Agency
Private-Purpose
Trust Fund
ADDITIONS
RPTTF distribution $ 1,710,164
Investment earnings 13,211
Total additions 1,723,375
DEDUCTIONS
Debt service payments-interest 940,094
Depreciation 204,382
Amortization of deferred charges (5,641)
Other payments 287,582
Total deductions 1,426,417
Change in net position - 296,958
Net position, beginning of year 1,720,032
Net position, end of year $ 2,016,990
The accompanying notes are an integral part of these financial statements.
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
NOTE DESCRIPTION PAGE
1 Summary of Significant Accounting Policies 28
2 Cash and Investments 37
3 Notes and Loans Receivable 44
4 Interfund Transactions 46
5 Capital Assets and Depreciation 48
6 Long-Term Liabilities 49
7 Retirement Plan - Defined Benefit Pension Plan 49
8 Other Post Employment Benefits 57
9 Conduit Debt- Revenue Bonds 59
10 Special Assessment Bonds 60
11 Risk Management 61
12 Classification of Net Position and Fund Balance 64
13 Commitments and Contingencies 67
14 Successor Agency- Private Purpose Trust Fund 68
15 Employees Retirement Plan 70
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Moorpark (City) conform to accounting principles generally accepted in the
United States of America as applicable to governments. The Governmental Accounting Standards Board
(GASB) is the accepted standard setting body for governmental accounting and financial reporting principles.
The following is a summary of the significant policies.
A) Reporting Entity
The reporting entity "City of Moorpark" includes the accounts of the City, the Moorpark Public Financing
Authority (PFA), and the Industrial Development Authority of the City of Moorpark(IDA).
The City was incorporated in July 1983 as a general law city and operates under a Council/Manager form of
government.
The PFA was formed in 1993 as a joint powers authority between the City and the former Redevelopment
Agency of the City of Moorpark (Agency) in order to provide financial assistance to the City and the Agency by
issuing debt and financing the construction of public facilities.
The IDA was formed in 1985 pursuant to the California Industrial Development Financing Act (ACT). Its purpose
is to finance the acquisition and development of certain industrial activities as permitted by the Act and to issue
bonds for the purpose of enabling industrial firms to finance the cost of such activities.
The City is the primary government unit. Component units are those entities which are financially accountable to
the primary government, either because the City appoints a voting majority of the component unit's Board, or
because the component unit will provide a financial benefit or impose a financial burden on the City.
The City has accounted for the PFA and IDA as"blended"component units. Despite being legally separate, they
are so intertwined with the City, they are in substance, part of the City's operations. The PFA and IDA were
inactive during the fiscal year ended June 30, 2016.
The following specific criteria were used in determining that the PFA and the IDA are "blended" component
units:
1) The members of the City Council also act as the governing body of the PFA, and the IDA.
2) The City, the PFA, and the IDA are financially interdependent.
3) The PFA, and the IDA are managed by employees of the City.
4) The PFA and IDA did not issue separate financial statements in the current fiscal year.
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
B) Accounting and Reporting Policies
The City has conformed to the pronouncements of the GASB, which are the primary authoritative statements of
the accounting principles generally accepted in the United States of America applicable to state and local
governments.
C) Description of Funds
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting
entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that
comprise its assets, liabilities, fund balance, revenues, and expenditures. The following types of funds are in use
by the City:
Governmental Fund Types
General Fund-_Used to account for and report all financial resources not accounted for and reported in another
fund.
Special Revenue Funds - Used to account for and report the proceeds of specific revenue sources that are
restricted or committed to expenditure for specific purposes other than debt service or capital projects.
Capital Projects Funds - Used to account for and report financial resources that are restricted, committed, or
assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and
other capital assets.
Fiduciary Fund Types
Agency Funds - Used to account for assets held by the City as an agent for individuals, private organizations,
other governments and/or other funds.
Private Purpose Trust Fund - Used to account for the resources, obligations and activities of the Successor
Agency of the Redevelopment Agency of the City of Moorpark (SARA) as directed by the Oversight Board
to settle the affairs of the dissolved Agency(see Note 14).
•
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Basis of Accounting and Measurement Focus
Government-Wide Financial Statements
The City's Government-Wide Financial Statements include a Statement of Net Position and a Statement of
Activities. These statements present summaries of Governmental Activities for the City. These statements are
presented on an "economic resources" measurement focus and the accrual basis of accounting.Accordingly, all
of the City's assets, deferred inflows of resources, liabilities, and deferred outflows of resources, including
capital assets and infrastructure as well as long-term debt, are included in the accompanying Statement of Net
Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting,
revenues are recognized in the period in which they are earned while expenditures are recognized in the period
in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct
expenses of a given function are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function. The types of transactions reported as program revenues for the City are
reported in three categories: 1) charges for services, 2) operating contributions and grants, and 3) capital
_ contributions and grants. Charges for services include revenues from customers or applicants who purchase,
use, or directly benefit from goods, services, or privileges provided by a given function. Operating contributions
and grants include revenues restricted to meeting the requirements of a particular operating function and may
include state shared revenues and grants. Capital contributions and grants include revenues restricted to
meeting the requirements of a particular capital function and may include grants and developer fees. Taxes and
other items not properly included among program revenues are reported instead as general revenues.
Certain eliminations have been made in regard to inter-fund activities, payables, and receivables. All internal
balances in the government-wide financial statements have been eliminated.
Sometimes the government will fund outlays for a particular purpose from Moth restricted and unrestricted
resources. In order to calculate the amounts to report as restricted-net position and unrestricted-net position in
the government-wide financial statements, a flow assumption must be made about the order in which the
resources are considered to be applied. It is the City's policy to consider restricted-net position to have been
depleted before unrestricted-net position is applied.
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and Statement of Revenues, Expenditures,
and Changes in Fund Balances for all major governmental funds and aggregated non-major funds. An
accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in
these statements to the net position presented in the Government-wide Financial Statements. The City has
presented all major funds that met the qualifications in accordance with the accounting standards. All
governmental funds are accounted for on a spending or "current financial resources" measurement focus and
the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resources,
current liabilities, and deferred inflows of resources are included on the Balance Sheets.
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Basis of Accounting and Measurement Focus, (continued)
Governmental Fund Financial Statements, (continued)
The Statement of Revenues, Expenditures, and Changes in Fund Balances presents increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in fund balances. Revenues
are recognized in the accounting period in which they become both measurable and available to finance
expenditures of the current period. "Measurable" means that the amount of the transaction can be determined,
and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities
of the current period. Accrued revenues include property taxes received within 60 days after year-end, taxpayer
assessed taxes such as sales taxes, and earnings on investments. Grant funds earned but not received are
recorded as a receivable, and grant funds received before the revenue recognition criteria have been met are
reported as unearned revenues. Expenditures are recorded when the fund liability is incurred, if measurable,
except for un-matured interest on general long-term debt, which is recognized when due.
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted
resources. In order to calculate the amounts to report as restricted, committed, assigned and unassigned fund
balance in the governmental fund financial statements, a flow assumption must be made about the order in
which the resources are considered to be applied. It is the City's policy to consider restricted fund balance to
have been depleted before using any of the unrestricted components of fund balance.
Furthermore, when the components of unrestricted fund balance can be used for the same purpose, committed
fund balance is depleted first,followed by assigned fund balance. Unassigned fund balance is applied last.
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial resources of the City,
except those required to be accounted for in another fund. Sources of revenue are property tax, sales tax,
franchise fee and transfer taxes, fines and forfeitures, fees for services and interest.
The Street and Traffic Safety Special Revenue Fund is used to account for fees used for street maintenance,
right-of-way acquisition and street construction. Sources of revenue are traffic fines and forfeitures collected
through Ventura County Superior Courts.
The Assessment Districts Special Revenue Fund is used to account for funds received by the City for
maintenance of community-wide parks, street lighting and landscaping. Sources of revenue are property
assessments collected by the Ventura County Tax Collector.
The Parks and Public Facilities Special Revenue Fund is used to account for fees used for park and public
facilities improvements as a result of additional development. Sources of revenue are development fees.
The Low and Moderate Income Housing Asset Special Revenue Fund is used to account for the housing assets
transferred from the former Agency and Low and Moderate housing activities of the City. Sources of revenue
are from sale of property and repayment of loans. The fund activities are restricted to the same requirements as
the Low and Moderate Income Housing Fund of the former Agency.
The Community Development Special Revenue Fund is used to account for planning, development, public
works and engineering related expenditures. Sources of revenues are from service fees collected from issuance
of various types of permits, plan checks, improvement inspections and other miscellaneous items.
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Basis of Accounting and Measurement Focus, (continued)
Governmental Fund Financial Statements, (continued)
The Endowment Special Revenue Fund is used to account for funds received by the City for certain projects or
other sources directed by the City Council to be held for the purpose of one-time expenditure of community-wide
benefit due to the impact of additional development. Sources of revenue are development fees.
The Police Facilities Fee Capital Projects Fund is used to account for the funds used to build the new police
facility. The source of revenue is a percentage of permit fees issued.
The Special Projects Capital Projects Fund is used to account for various City capital improvement projects
including major rehabilitation of streets, parks and facilities and other infrastructure. Source of revenue is the
General Fund balance monies in excess of$3,000,000.
Fiduciary Funds Financial Statements
Fiduciary Funds Financial Statements include a Statement of Fiduciary Net Position and a Statement of
Changes in Fiduciary Net Position. The Fiduciary Funds are used to report assets held in a trustee or agency
capacity for others and therefore are not available to support City programs. Since these assets are being held
for the benefit of a third party, these funds are not incorporated into the government-wide statements. The
fiduciary funds are accounted for using the accrual basis of accounting.
The City reports the following Private Purpose Trust Fund:
Private-Purpose Trust Fund—This fund is used to account for the resources, obligations and activities of SARA
as directed by the Oversight Board to settle the affairs of the dissolved Agency.
The City reports the following Agency Fund:
The agency fund accounts for developer deposits and assets held for property owners of various assessment
and community facilities districts. The agency fund is custodial in nature (assets equal liabilities) and therefore
does not involve measurement of results of operations.
E) Investments
The City reports certain investments at fair value in the balance sheet and recognizes the corresponding change
in the fair value of investments in the year in which the change occurred. The City has adjusted certain
investments to fair value(if material).
Investments are included within the financial statement classifications of"cash and investments" and "restricted
cash and investments," and are stated at fair value.
F) Property Held for Resale/Development
Property held for resale in the Low and Moderate Income Housing Asset Fund and City Affordable Housing
Fund, represent land and buildings purchased by the City, or by the former Agency and transferred to the City
as housing assets. Such property is valued at the lower of cost or estimated net realizable value and has been
offset by restricted fund balance to indicate that these assets constitute future projects and are restricted
resources.The balance at June 30, 2016 was$8,096,221.
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559
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
G) Capital Assets
Capital assets, which include land, machinery and equipment (vehicles, computers, etc.), buildings and
improvements, and infrastructure assets (street systems, storm drains, sewer systems, etc.), are reported in the
Governmental Activities column of the Government-wide Financial Statements. Capital assets are defined by
the City as all land; buildings and improvements with an initial individual cost of more than $10,000; vehicles,
computers and equipment with an initial individual cost of more than $5,000; and improvements and
infrastructure assets with costs of more than $100,000. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated or annexed capital assets are recorded at estimated market
value at the date of donation or annexation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized. Depreciation is recorded in the Government-wide Financial Statements on a
straight-line basis over the useful life of the assets as follows:
Building and Improvements 25 to 50 years
Vehicles, Computers, and Equipment 3 to 20 years
Infrastructure Assets •
Roadway Network 7 to 100 years
Drain Network 20 to 100 years
Parks and Recreation Network 50 years
H) Unearned and Unavailable Revenue
Unearned revenue is recorded for monies collected in advance that have not been earned. Unavailable revenue
is recorded when the availability criteria has not been met. As of June 30, 2016, unearned revenue in the
Governmental Funds amounted to $387,112. The majority of this amount, $312,773 is for the Metro link North
Parking Lot project. Unavailable revenue amounted to $125,009; of which $124,136 represents Transit
revenues from the State that were not available as of June 30, 2016.
I) Long-Term Debt
In the statement of net position of the government-wide financial statements, long-term debt and other
obligations are reported as liabilities. The balance showed as outstanding represents compensated absences
payable and net pension liability at June 30, 2016.
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560
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
J) Employee Compensated Absences
City employees may receive from 20 to 30 days of vacation time or annual leave each year, depending upon
length of service. An employee may accumulate earned vacation time up to a maximum of 720 hours or annual
leave up to a maximum of 744 hours and administrative leave up to a maximum of 120 hours, depending on
position. The amount of maximum hours for the leave accrual is based on the employee classification: regular
employee, management, department head or City Manager. Upon termination, employees are paid the full value
of their unused annual leave, administrative leave, vacation time, and a portion of sick leave per management
benefits and City's Memorandum of Understanding (MOU) with the Service Employee International Union.
There is no fixed payment schedule for employee compensated absences.
K) Property Taxes
The duties of assessing and collecting property taxes are performed by the Ventura County (County) Assessor
and Tax Collector, respectively. The City receives an allocation of property taxes collected by the County with
respect to property located within the City limits equal to 9.1 percent of the one percent State levy. SARA
receives incremental property taxes on property within the project area over the base-assessed valuation at the
date the project area was established. Tax levies cover the period from July 1 to June 30 of each year. All tax
liens are attached annually on the first day in January preceding the fiscal year for which the taxes are levied.
Taxes are levied on both real and personal property, as it exists on that date.
Secured property taxes are levied against real property and are due and payable in two equal installments. The
first installment is due on November 1 and becomes delinquent if not paid by December 10. The second
installment is due on February 1 and becomes delinquent if not paid by April 10. Unsecured personal property
taxes are due on July 1 each year. These taxes become delinquent if not paid by August 31.
L) Claims and Judgments
When it is probable that a claim liability has been incurred, and the amount of the loss can be reasonably
estimated, the City records the estimated loss, net of any insurance coverage under its self-insurance program.
At June 30, 2016, in the opinion of the City Attorney, the City had no material claims, which require loss
provision in the financial statements. Small claims and judgments are recorded as expenditures when paid.
The City's self-insurance program is administered through the California Joint Powers Insurance Authority
(Authority). The Authority is a public entity risk pool, which is accounted for under the provisions of GASB
Statement No. 10. Claim losses recorded in the Authority include both current claims and Incurred but Not
Reported claims (IBNR). These deposits are subject to retrospective adjustment. Favorable claims experience
results in a refund of deposits from the Authority and such refunds, if any, are recorded as a reduction of
insurance expenditures in the year received. Adverse claims experience results in the payment of additional
deposits and such deposits, if any, are recorded as insurance expenditures when paid.
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561
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
M) Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect certain reported
amounts and disclosures.Accordingly, actual results could differ from those estimates.
N) Fund Balance Reporting and Governmental Fund Type Definitions
The following fund balance classifications describe the relative strength of the spending constraints placed on
the purposes for which resources can be used:
Nonspendable—amounts that are not in a spendable form (such as inventory) or are required to be maintained
intact.
Restricted — amounts constrained to specific purposes by their providers (such as grantors, bondholders and
higher levels of government),through constitutional provisions or by enabling legislation.
Committed — amounts constrained to specific purposes by a government itself, using the highest level of
decision-making authority, a City Council Action; to be reported as committed, amounts cannot be used for any
other purpose unless the government takes the same highest level action to remove or change the constraint.
Assigned — amounts a government intends to use for a specific purpose; intent can be expressed by the
governing body or by an official or body to which the governing body delegates the authority.
Unassigned—amounts that are for any purpose; positive amounts are reported only in the General Fund.
The City Council, establishes (and modifies or rescinds)fund balance commitments by passage of a resolution.
The City's Fund Balance Policy authorizes the Finance Director to assign Fund Balances for specific purposes.
When both restricted and unrestricted resources are available for use when expenditures are incurred, it is the
City's policy to use restricted resources first, then unrestricted resources as they are needed. It is also the City's
policy to consider committed amounts as being reduced first, followed by assigned amounts and then
unassigned amounts when expenditures are incurred for purposes for which amounts in any of those
unrestricted fund balance classifications could be used.
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562
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
0) Pension plans
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to
pensions, and pension expense, information about the fiduciary net position and additions to/deductions from
the fiduciary net position have been determined on the same basis as they are reported by the CaIPERS
Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are
recognized when currently due and payable in accordance with the benefit terms. Investments are reported at
fair value. CaIPERS audited financial statements are publicly available reports that can be obtained at California
Public Employees Retirement System (CaIPERS) at www.calpers.ca.gov.
GASB 68 requires that the reported results must pertain to liability and asset information within certain defined
timeframes. For this report, the following timeframes are used.
Valuation Date(VD) June 30, 2014
Measurement Date(MD) June 30, 2015
Measurement Period (MP) July 1, 2014 to June 30, 2015
P) Implementation of new GASB pronouncements
GASB has issued Statement No. 72, Fair Value Measurement and Application. This Statement addresses
accounting and financial reporting issues related to fair value measurements. The definition of fair value is the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. This statement provides guidance for determining a fair value
measurement for financial reporting purposes. This statement also provides guidance for applying fair value to
certain investments and disclosures related to all fair value measurements.
The requirements of this Statement will enhance comparability of financial statements among governments by
requiring measurement of certain assets and liabilities at fair value using a consistent and more detailed
definition of fair value and accepted valuation techniques. This statement also will enhance fair value application
guidance and related disclosures in order to provide information to financial statement users about the impact of
fair value measurements on a government's financial position.
The City implemented GASB Statement No. 82, Pension Issues. The objective of this statement is to address
certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans,
No. 68, Accounting and Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for
Pensions and Related Assets that are Not within the Scope of GASB Statement 68, and Amendments to Certain
Provisions of GASB Statements 67 and 68. The statement addresses the presentation of payroll-related
measures in required supplementary information, the selection of assumptions and the treatment of deviations
from the guidance in an Actuarial Standard of Practice for financial reporting purposes and the classification of
payments made by employers to satisfy employee(plan member) contribution requirements.
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563
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
2) CASH AND INVESTMENTS
Cash and investments at June 30, 2016, consisted of the following:
City Treasury Deposits
Demand Deposits $ 1,360,662
Cash on Hand 1,750
Total City Treasury Deposits 1,362,412
City Treasury Investments
Local Agency Investment Fund (LAIF) 3,050,163
Ventura County Pool 36,945,133
Highmark Money Market 7,156,527
Certificates of Deposit-Negotiable 4,453,379
U.S. Treasury Notes 1,025,550
U.S.Agency Securities:
Federal National Mortgage Ass. _ 20,731,114
Federal Home Loan Bank 15,546,973
Federal Farm Credit Bank 9,406,231
Federal Home Loan Mortgage Corp. 11,238,220
Farmer Mac 4,745,146
Federal Agricultural Mortgage Corp. 1,030,170
Total City Treasury Investments 115,328,605
Cash and Investments With Fiscal Agent
Money Market 4,473,020
US Treasury Notes 2,312,735
Medium Term Notes 250,926
Commercial Paper 1,305,966
Total Cash and Investments With Fiscal Agent 8,342,647
Total Cash and Investments $ 125,033,664
Cash and Investments are reported in the basic financial statements as follows:
Statement of Statement of Fiduciary
Net Position Net Position
Governmental Private-Purpose Agency Fund Total
Activities Trust Fund
Cash and investments $ 109,695,830 $ 2,416,187 $ 4,579,000 $ 116,691,017
Cash and investments
with fiscal agent - 3,534,914 4,807,733 8,342,647
Total $ 109,695,830 $ 5,951,101 $ 9,386,733 $ 125,033,664
•
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564
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
2) CASH AND INVESTMENTS, (continued)
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held
by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and
investments is allocated on a quarterly basis to the various funds based on average daily cash and investment
balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
A) Authorized Investments
Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government
Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the
California Government Code (or the City's investment policy, where more restrictive) that address interest rate
risk, credit risk, and concentration of credit risk.
This table does not address investments of debt proceeds held by bond trustees that are governed by
provisions of debt agreements of the City, rather than the general provisions of the California Government Code
or the City's investment policy.
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity of Portfolio* In One Issuer
U.S.Treasury Obligations 5 years None None
U.S.Agency Securities 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year None None
Medium-Term Notes 5 years 30% None
Money Market Mutual Funds N/A 20% None
County Pooled Investment Funds N/A None None
LAIF N/A None $ 65,000,000
*Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.
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565
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
2) CASH AND INVESTMENTS, (continued)
A) Authorized Investments, (continued)
The policy, in addition to State statutes, establishes that funds on deposit in banks must be federally insured or
collateralized and investments shall (1) have maximum maturity not to exceed five years and (2) be laddered
and based on cash flow forecasts. The City's investments comply with the established policy.
Investments Authorized by Debt Aqreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather
than the general provisions of the California Government Code or the City's investment policy. The table below
identifies the investment types that are authorized for investment held by bond trustees.
The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk,
and concentration of credit risk.
Authorized Investment Type Maximum Maturity
U.S. Treasury Obligations None
U.S. Agency Securities None
Banker's Acceptances 180 days
Commercial Paper 270 days
Money Market Mutual Funds N/A
Investment Contracts 30 years
B) Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by
purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities
so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide
the cash flow and liquidity needed for operations.
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566
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
2) CASH AND INVESTMENTS, (continued)
B) Interest Rate Risk, (continued)
Information about the sensitivity of the fair values of the City's investment to market interest rate fluctuation is
provided by the following table that shows the distribution of the City's investments by maturity.
Remaining maturity(in years)
Investment type Total Less than 1 1 to 2 2 to 3 3 to 4 >4
LAIF $ 3,050,163 $ 3,050,163 $ - $ - $ - $ -
VenturaCountyPool 36,945,133 36,945,133 - - - -
Highmartc Money Market 7,156,527 7,156,527 - - - -
Certificates of Deposit 4,453,379 - - - - 4,453,379
U.S.Treasury Notes 1,025,550 - - 1,025,550 - -
U.S.Agency Securities:
Federal National Mortgage Ass. 20,731,114 - 6,015,660 6,133,990 4,481,024 4,100,440
Federal Home Loan Bank 15,546,973 1,006,140 1,000,180 5,784,883 6,221,930 1,533,840
Federal Farm Credit Bank 9,406,231 - 3,033,490 2,043,900 3,302,341 1,026,500
Federal Home Loan Mortgage Corp. 11,238,220 - 2,066,520 3,107,290 3,061,770 3,002,640
Farmer Mac 4,745,146 - 2,007,860 2,737,286 - -
Federal Agricultural Mortgage Corp. 1,030,170 - - - 1,030,170 -
Held by bond trustee:
Money Market 4,473,020 4,473,020 - - - -
US Treasury Notes 2,312,735 2,312,735 - - - -
Medium Term Notes 250,926 - - - - 250,926
Commercial Paper 1,305,966 1,305,966 - - - -
$ 123,671,252 $ 56,249,684 $ 14,123,710 $ 20,832,898 $ 18,097,235 $ 14,367,725
C) Credit Risk and Concentration of Credit Risk
At June 30, 2016, the carrying amount of the City and SARA's combined deposits with financial institutions was
$1,360,662. Bank balances, before reconciling items, were $2,676,579 at June 30, 2016, which were
collateralized with securities held by the pledging financial institution's trust department.
The California Government Code requires California depository banks and savings and loan institutions to
secure government organizations' cash deposits by pledging securities as collateral. The Code states that
collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior
to those of a general creditor.
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567
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
2) CASH AND INVESTMENTS, (continued)
C) Credit Risk and Concentration of Credit Risk, (continued)
According to California law, the market value of pledged securities with banking institutions must equal at least
110% of the organization's cash deposits. California law also allows institutions to serve City deposits by
pledging first trust deed mortgage notes having a value of 150% of the organization's total cash deposits. The
organizations may waive collateral requirements for cash deposits, which are insured for interest and non-
interest bearing accounts up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). The City,
however, does not normally waive the collateralization requirements. As of June 30, 2016, the City and SARA
combined have $2,426,579 in excess of the $250,000 limit of FDIC coverage. The $2,426,579 is fully
collateralized by the banking institution, per California law.
Investments
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of rating by a nationally recognized statistical rating
organization. Presented below is the minimum rating required by (where applicable) the California Government
Code and the actual rating as of year-end for each investment type.
The California Government Code places limitations on the amount that can be invested in any one issuer (as
detailed above). Investments in any one issuer(other than U.S. Treasury securities, mutual funds, and external
investment pools)that represent 5% or more of total investments are as follows:
Credit Quality, Distribution for Securities with Credit Exposure as a Percentage of Total Investments:
Investment type Carrying Credit Percentage of
Value Rating Investments
LAIF $ 3,050,163 Not Rated 2.5%
Ventura County Pool 36,945,133 AAAf 29.9%
Highmark Money Market 7,156,527 AAA 5.8%
Certificates of Deposit 4,453,379 AAA 3.6%
U.S. Treasury Notes 1,025,550 AA+ 0.8%
U.S.Agency Securities:
Federal National Mtg.Assn. 20,731,114 AA+ 16.8%
Federal Home Loan Bank 15,546,973 AA+ 12.6%
Federal Farm Credit Bank 9,406,231 AA+ 7.6%
Federal National Mtg Corp. 11,238,220 AA+ 9.1%
Farmer Mac 4,745,146 AA+ 3.8%
Federal Agric Mtg Corp. 1,030,170 AA 0.8%
Held by bond trustee:
Money Market Funds 4,473,020 Not Rated 3.6%
U.S.Treasury Notes 2,312,735 AA+ 1.9%
Medium Term Notes 250,926 AA+ 0.2%
Commecial Paper 1,305,966 Not Rated 1.1%
$ 123,671,252 100.0%
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568
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
2) CASH AND INVESTMENTS, (continued)
D) Local Agency Investment Fund (LAIF)
The LAIF is a special fund of the California State Treasury through which local governments may pool
investments. Each governmental agency may invest up to$65,000,000 in each account in the fund. Investments
in LAIF are highly liquid, as deposits can be converted to cash within twenty-four hours without loss of interest or
principal. The full faith and credit of the State of California secures investment in LAIF. At June 30, 2016,
accounts were maintained in the name of the City for$3,050,163.At June 30, 2016, the fair value of the State of
California Pooled Money Investment Account (PMIA) including accrued interest was $77,650,017,000. The
PMIA portfolio had securities in the form of structured notes and asset-backed securities. The PMIA has
policies, goals, and objectives for the portfolio to make certain that the goals of safety, liquidity, and yield are not
jeopardized. These policies are formulated by investment staff and reviewed by both the PMIA and LAIF
Advisory Boards on an annual basis. LAIF's and the City's exposure to credit, market, or legal risk is not
available. The City is a voluntary participant in the investment pool.
E) The Ventura County Treasurer's Investment Pool
The City holds investments in the County Pool that are subject to being adjusted to "fair value." The City is
required to disclose its methods and assumptions used to estimate the fair value of its holdings in the County
Pool. The City relied upon information provided by the County Treasurer in estimating the City's fair value
position of its holdings in the County Pool. The City had a contractual withdrawal value of$36,945,133 at fiscal
year-end.
The Ventura County Treasurer's Investment Pool is a governmental investment pool managed and directed by
the elected Ventura County Treasurer. The County Pool is not registered with the Securities and Exchange
Commission. As of June 30, 2016, the fair value of the City's position in the pool equals the value of the pool
shares. An oversight committee comprised of local government officials and various participants provide
oversight to the management of the fund. The daily operations and responsibilities of the pool fall under the
auspices of the County Treasurer's office. The City is a voluntary participant in the investment pool.
F) Fair Value Measurements
GASB Statement No. 72, Fair Value Measurements and Application, establishes a fair value hierarchy that
prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad
levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets
that a government can access at the measurement date, Level 2 inputs that are observable for an asset or
liability, either directly or indirectly, and Level 3 inputs have the lowest priority and consist of unobservable
inputs for an asset or liability.
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569
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
2) CASH AND INVESTMENTS, (continued)
F) Fair Value Measurements, (continued)
The following table presents the balances of the assets measured at fair value on a recurring basis as of
June 30, 2016:
Investments by Fair Value Level Total Level 1 Level 2 _ Level 3
Highmark Money Market $ 7,156,527 $ 7,156,527 $ - $ -
Certificates of Deposit 4,453,379 - 4,453,379 -
U.S.Treasury Notes 1,025,550 1,025,550 - -
U.S.Agency Securities:
Federal National Mtg.Assn. 20,731,114 20,731,114 - -
Federal Home Loan Bank 15,546,973 15,546,973 - -
Federal Farm Credit Bank 9,406,231 9,406,231 - -
Federal National Mtg Corp. 11,238,220 11,238,220 - -
Farmer Mac 4,745,146 4,745,146 - -
Federal Agric Mtg Corp. 1,030,170 1,030,170 - -
Held by bond trustee:
Money Market Funds 4,473,020 4,473,020 - -
U.S.Treasury Notes 2,312,735 2,312,735 - -
Medium Term Notes 250,926 - 250,926 -
Commecial Paper 1,305,966 1,305,966 - -
Total assets in the fair value hierarchy 83,675,956 78,971,652 4,704,305 -
Investments measured at the net asset
value
LAIF 3,050,163
Ventura County Pool 36,945,133
Total investments measured at fair value $ 123,671,252 $ 78,971,652 $ 4,704,305 $ -
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570
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
3) NOTES AND LOANS RECEIVABLE
Notes and loans receivable activity for the year ended June 30, 2016, is as follows:
Beginning Ending
Balance Increases Decreases Balance
Notes receivable
Deferred property assessments $ 432,345 $ 1,083 $ - * $ 433,428
Moorpark 20,LP 1,983,758 44,412 - 2,028,170
Total notes receivable 2,416,103 45,495 - 2,461,598
Loans receivable
Rehabilitation 13,714 - (245) 13,469
First-time home buyer assistance-Affordable Housing 15,096 246 (7,794) 7,548
CalHome 111,774 - (3,115) 108,659
Mountain Recreation&Conservation Authority 6,500 - 6,500
Total loans receivable 147,084 246 (11,154) 136,176
Total loans and notes receivable $ 2,563,187 $ 45,741 $ (11,154) $ 2,597,774
Balance includes accrued interest separately reported in the financial statements.
A) Deferred Property Assessments Notes
In March 1993, the City entered into agreements with three property owners of the City of Moorpark Assessment
District No. 92-1 whereby in return for deferring the property owner's assessment levy, the City received three
promissory notes totaling $279,427. The notes bear simple interest equivalent to the LAIF variable rate not to
exceed 7% per annum. Principal and interest are due on the date the City executes an approved final map of
the property or the date of a court ordered subdivide of the property. At June 30, 2016, the principal balance
outstanding is $250,249 and accrued interest of $183,179 for a total balance of $433,428. The outstanding
balance and accrued interest are due and payable in 2023.
B) Moorpark 20, LP Promissory Note
On October 29, 2010, the Agency signed the Disposition and Development Agreement (DDA) with the Area
Housing Authority of the County of Ventura (AHA)and Moorpark 20, Limited Partnership (M2OLP), consisting of
AHA and Santa Barbara Housing Assistance Corporation. The DDA provides for the construction of a 20-unit
affordable housing project (Project) on Agency-owned property located at 396, 406 and 496 Charles Street
(Site). During the tax credit application, the sale price of Site was determined to be $1,176,500 to show more
local funds into the Project. On the same date, the Agency executed a $1,176,500 loan agreement with M2OLP
to purchase the Site from the Agency. The loan will accrue interest at the rate of 2.5% per annum and have a
term of 55 years. One annual payment will be made to the Agency by M2OLP from residual receipts after the
$600,000 has been paid off. This loan is subordinate in right of payment to First Mortgage Note held by Bank of
America, N.A. and is secured by Deed of Trust and Security Agreement. The principal and accrued interest
outstanding on this note at June 30, 2016 are$1,176,500 and$166,670 respectively for a total of$1,343,170.
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571
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
3) NOTES AND LOANS RECEIVABLE, (continued)
B) Moorpark 20, LP Promissory Note, (continued)
On November 2, 2010 the Agency entered into a $600,000 loan agreement with M20LP to complete the
construction of the Project. As of June 30, 2012, M20LP has drawn down the entire amount. The term of the
loan is 30 years with a fixed interest rate of 2.5%. One annual payment will be made to the Agency by M20LP
equal to 75% of available residual receipts. This note is subordinate in right of payment to the First Mortgage
Loan payable to Bank of America, N.A. and is secured by Deed of Trust and Security Agreement. The principal
and accrued interest outstanding on this note at June 30, 2016 are $600,000 and $85,000 respectively for a
total of$685,000.
The combined amount of principal and accrued interest outstanding at June 30, 2016 is $1,776,500 and
$251,670 respectively, for a total of$2,028,170.
C) Rehabilitation Loans
The City operates a rehabilitation loan program for the renovation of low and moderate income housing. The
total balance outstanding at June 30, 2016,was$13,469.
D) First-Time Homeowner Assistance
The City provides down payment assistance loans to first-time homeowners under different State and City
programs. The total balance outstanding at June 30, 2016 was $7,548. In order to reinforce the resale
restrictions on properties purchased through the City's First Time Home Buyer Program, buyers execute
Promissory Notes and Deeds of Trust, which are recorded to secure these Notes. The Notes become payable
only in the event of a default of any provision of this program.
E) Cal Home Mobile-home Rehabilitation Loans
The total balance of Cal Home loans for repairs to mobile-homes in Villa del Arroyo at June 30, 2016 was
$108,659. These loans are subject to a conditional forgiveness provision, beginning in Year 6 of the loan,
continuing through Year 10 of the loan, with 2Q% of the balance forgiven each of these years; to date $121,072
has been received and $222,231 has been forgiven. Funds received are deposited into a City Trust Fund to be
used for eligible home ownership-related activities.
F) Mountains Recreation &Conservation Authority (MRCA)
The City advanced $6,500 to MRCA to conduct an updated appraisal for approximately 3,805 acres in and
adjacent to the Moorpark Area of Interest near Moorpark College for review by the State of California
Department of General Services. These funds were to be repaid without interest to the City by June 30, 2015, or
within sixty days of the State of California's reauthorization of MRCA's Proposition 84 Project Planning and
Design grant from the Santa Monica Mountains Conservancy, whichever comes first. The total balance
outstanding at June 30, 2016 was $6,500. The City is exploring options for repayment; including provisions of
services by MRCA to manage the conservation of an 80-acres City-owned open space property located outside
the City limits along Tierra Rejada Road; or assistance with City acquisition of additional open space property.
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572
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
4) INTERFUND TRANSACTIONS
Due to/Due from
Due to/due from other funds for the year ending June 30,2016, consisted of the following:
Receivable Fund Payable fund Amount
General Fund Non-Major Funds d $ 95,716
Non-Major Funds Non-Major Funds a 177,006
Special Revenues-Endowment Special Revenues-Police Facilities c 1,327,631
Capital Projects-Special Projects Special Revenues-Parks and Public Facilities b 919,874
$ 2,520,227
a. In the Fiscal Year 2005/2006, the Los Angeles AOC Fund advanced to the Tierra Rejada Road/Spring
Road AOC, $600,000 to construct the median landscaping along Tierra Rejada Road. Repayment of the
outstanding loan is contingent upon collection of future development fees. The current amount is$177,006.
b. In the Fiscal Year 2009/2010, the Special Projects Fund advanced to the Parks/Public Facilities Fund,
$1,000,000 to construct a new Skate Park and expansion of the Poindexter Park. The loan is subject to variable
interest based on the average interest rate earned by LAIF from the previous year.The principal and interest will
be repaid as Park fees are collected from new developments.
c. In the Fiscal Year 2005/2006, the Endowment Fund advanced to the Police Facilities Fund, $7,641,592
to construct the Police Services Center Building. Future development fees were pledged to repay this loan.
However in March 2006, it was determined that at build-out, there will be an estimated $6.6 million shortfall in
future revenues and City Council subsequently approved the contribution of $5,434,834 from the Endowment
Fund.
d. In the current Fiscal Year, the General Fund advanced cash to the TEA Federal Grants Fund, which
posted a negative cash balance. This is considered a short-term borrowing and is expected to be paid in the
next fiscal year.
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573
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
4) INTERFUND TRANSACTIONS, (continued)
Transfers
Interlund transfers for the year ended June 30, 2016 consisted of the following:
Fund receiving transfers Fund making transfers Amount
Special Revenues-Assessments Districts General Fund (1) $ 1,668,306
Special Revenues-Low Mod Income Housing Asset General Fund (4) 89,309
Special Revenues-Community Development General Fund (1) 666,185
Capital Projects-Special Projects General Fund (2) 2,841,245
Non-Major Funds General Fund (4) 521,775
Special Revenues-Streets Traffic and Safety (3) 54,036
Special Revenues-Parks Public Facilities (3) 17,115
Capital Projects-Special Projects (3) 257,262
850,188
Total governmental funds transfers $ 6,115,233
(1)=Transfers made to provide funding for operations.
(2)=Transfers made to adjust fund balance to minimum requirement.
(3)=Transfers made to provide funding for future equipment replacements.
(4)=Transfers made to move land held for resale to the proper fund.
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574
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
5) CAPITAL ASSETS AND DEPRECIATION
The City reports all capital assets including infrastructure in the Government-wide Statement of Net position.
The City elected to use the basic approach, in accordance with accounting standards, for all infrastructure
reporting,whereby depreciation expense and accumulated depreciation have been recorded.
The following table presents the capital assets activity for the year ended June 30, 2016:
Beginning Ending
Balance Additions Deletions Balance
Governmental activities:
Capital assets,not being depreciated:
Land $ 41,079,642 $ 886,764 $ - $ 41,966,406
Land-Rights-of-way 123,066,830 235,935 - 123,302,765
Infrastructure-Roadway system 1,350,949 - (31,601) 1,319,348
Construction in progress 12,015,023 1,812,742 (1,707,182) 12,120,583
Total capital assets not being depreciated 177,512,444 2,935,441 (1,738,783) ' 178,709,102
Capital assets,being depreciated:
Buildings and improvements 38,765,370 793,418 - - 39,558,788
Machinery and equipment 6,736,284 1,248,631 (38,070) 7,946,845
Infrastructure
Roadway system 93,378,561 - - 93,378,561
Storm drain system 2,933,748 - - 2,933,748
Parks system 251,434 - - 251,434
Total capital assets being depreciated 142,065,397 2,042,049 (38,070) ' 144,069,376
Less accumulated depreciation/amortization for.
Buildings and improvements (12,103,351) (1,089,560) - (13,192,911)
Machinery and equipment (4,295,534) (450,382) 28,190 (4,717,726)
Infrastructure
Roadway system (42,692,343) (1,881,131) - (44,573,474)
Storm drain system (352,711) (29,337) - (382,048)
Parks system (82,841) (5,029) - (87,870)
Total accumulated depreciation (59,526,780) (3,455,439) 28,190 (62,954,029)
Total capital assets being depreciated,net 82,538,617 (1,413,390) (9,880) 81,115,347
Governmental activities capital assets,net $ 260,051,061 $ 1,522,051 $ (1,748,663) $ 259,824,449
*Certain deletions in the capital assets activity schedule shown above are the result of reclassifications of assets
into different classes of assets. If assets that are disposed of are not fully depreciated at the time of the
disposal, these deletions in the asset classes may not be accompanied by a like decrease in the accumulated
depreciation for the same asset class.
Depreciation expense was charged to functions of the primary government as follows:
Governmental activities:
General government $ 71,378
Public safety 238,329
Public services,including general infrastructure 2,445,387
Parks and recreation 700,345
Total depreciation expense-governmental activities $ 3,455,439
•
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575
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
6) LONG-TERM LIABILITIES
Long-term liability activities for the year ended June 30, 2016, are as follows:
Beginning Ending Due within
Balance Increases Decreases Balance one year
Governmental activities:
Net pension liability(see Note 7) $ 4,430,102 $ - $ (3,336,924) $ 1,093,178 $ -
Compensated absences 649,358 584,365 (633,104) 600,619 322,120
Governmental activities
long-term liabilities $ 5,079,460 $ 584,365 $ (3,970,028) $ 1,693,797 $ 322,120
Employee Compensated Absences
The long-term liability at June 30, 2016 is $600,619 for employee compensated absences. The General Fund is
primarily expected to liquidate this liability.
7) DEFINED BENEFIT PENSION PLAN
A) General Information about the Pension Plan
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing
Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees'
Retirement System (CaIPERS.) The Plan consists of individual rate plans (benefit tiers) within a miscellaneous
risk pool. Plan assets may be used to pay benefits for any employer rate plan of the miscellaneous pool.
Accordingly, rate plans within the miscellaneous pool are not separate plans under GASB Statement No. 68.
Individual employers may sponsor more than one rate plan in the miscellaneous pool. The City of Moorpark
sponsors two miscellaneous rate plans. Benefit provisions under the Plan are established by State statute and
Local Government resolution. CaIPERS issues publicly available reports that include a full description of the
pension plan regarding benefit provisions, assumptions and membership information that can be found on the
CaIPERS'website at www.ca;pers.ca.gov.
Benefits Provided
CaIPERS provides service retirement and disability benefits, annual cost of living adjustments and death
benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of
credited service, equal to one year of full time employment. Members with five years of total service are eligible
to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after
5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit,
or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as
specified by the Public Employees' Retirement Law.
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576
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
7) DEFINED BENEFIT PENSION PLAN, (continued)
A) General Information about the Pension Plan, (continued)
Benefits Provided, (continued)
The Plan operates under the provisions of the California Public Employees' Retirement Law (PERL), the
California Public Employees' Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and
policies adopted by the CaIPERS Board of Administration. The Plans' authority to establish and amend the
benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in
some cases require approval by the CaIPERS Board.
The Plans' provisions and benefits in effect at June 30, 2016 are summarized as follows:
Miscellaneous PEPRA
Hire date Prior to On or after
January 1,2013 January 1,2013
Benefit formula 2.0%@ 55 2.0%@ 62
Benefit vesting schedule 5 years service 5 years service
Benefit payments monthly for life monthly for life
Retirement age 50-63 52-67
Monthly benefits, as a%of eligible compensation 1.426%to 2.418% 1.0%to 2.5%
Required employee contribution rates 7.00% 6.25%
Required employer contribution rates 8.003% 6.237%
Contributions
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be
effective on the July 1 following notice of a change in the rate. The total plan contributions are determined
through CaIPERS' annual actuarial valuation process. For public agency cost-sharing plans covered by either
the Miscellaneous or Safety risk pools, the Plan's actuarially determined rate is based on the estimated amount
necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the
year, and any unfunded accrued liability. The employer is required to contribute the difference between the
actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if
plan contracts are amended. Employer Contributions for the measurement period ended June 30, 2015 are
$4,147,265. The actual employer payments of $4,147,265 made to CaIPERS by the City during the
measurement period ended June 30, 2015 differed from the City's proportionate share of the employer's
contributions of$908,819 by$3,238,446, which is being amortized over the expected average remaining service
lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.
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577
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
7) DEFINED BENEFIT PENSION PLAN, (continued)
B) Net Pension Liability
The City of Moorpark's net pension liability for the Plan is measured as the total pension liability, less the
pension plan's fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2015, using
an annual actuarial valuation as of June 30, 2014 rolled forward to June 30, 2015 using standard update
procedures. The City uses the General Fund's available net position to liquidate any net pension obligations. A
summary of principal assumptions and methods used to determine the net pension liability is as follows.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
Actuarial Valuation Date June 30, 2014
Measurement Date June 30,2015
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Market Value
Actuarial Assumptions:
Discount Rate(2) 7.65%
Inflation 2.75%
Salary Increases(1) 3.30%-14.20%
Investment Rate of Return(2) 7.65%
Mortality Rate Table(3) Derived using CALPERS'membership data for all
Funds
Post Retirement Benefit Increase Contract COLA up to 2%until purchasing power
protection allowance floor on purchasing power
applies.
(1)Annual increases vary by category,entry age,and duration of service.
(2)Net of pension plan investments and administrative expenses,includes inflation.
(3)The mortality table used was developed based on CaIPERS'specific data.The table includes 20
years of mortality improvements using Society of Actuaries Scale BB.For more details on this table,
please refer to the 2014 experience study report.
•
All other actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial
experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement
rates. The Experience Study report can be obtained at CaIPERS'website at www.calpers.ca.gov.
Change of Assumptions
GASB 68, paragraph 68 states that the long long-term expected rate of return should be determined net of
pension plan investment expense but without reduction for pension plan administrative expense. The discount
rate of 7.50 percent used for the June 30, 2014 measurement date was net of administrative expenses. The
discount rate of 7.65 percent used for the June 30, 2015 measurement date is without reduction of pension plan
administrative expense.
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578
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
7) DEFINED BENEFIT PENSION PLAN, (continued)
B) Net Pension Liability, (continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.65 percent for the Plan. To determine
whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CaIPERS
stress tested plans that would most likely result in a discount rate that would be different from the actuarially
assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current
7.65 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The
long-term expected discount rate of 7.65 percent is applied to all plans in the Public Employees Retirement
Fund. The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that
can be obtained at CaIPERS'website under the GASB 68 section.
The long-term expected rate of return on pension plan investments was determined using a building block
method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation)are developed for each major asset class.
In determining the long-term expected rate of return, CaIPERS took into account both short-term and long-term
market return expectations as well as the expected pension fund cash flows. Such cash flows were developed
assuming that both members and employers will make their required contributions on time and as scheduled in
all future years. Using historical returns of all the funds' asset classes, expected compound (geometric) returns
were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block
approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits
was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected
return that arrived at the same present value of benefits for cash flows as the one calculated using both short-
term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate
calculated above and rounded down to the nearest one quarter of one percent.
The following table reflects long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The
target allocation shown was adopted by the Board effective on July 1, 2014.
New Strategic Real Return Real Return
Asset Class Allocation Years 1 -101 Years 11+z
Global Equity 51.0% 5.25% 5.71%
Global Fixed Income 19.0% 0.99% 2.43%
Inflation Sensitive 6.0% 0.45% 3.36%
Private Equity 10.0% 6.83% 6.95%
Real Estate 10.0% 4.50% 5.13%
Infrastructure and Forest Land 2.0% 4.50% 5.09%
Liquidity 2.0% (0.55%) (1.05%)
Total 100%
1 An expected inflation of 2.5%used for this period
2 An expected inflation of 3.0%used for this period
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579
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
7) DEFINED BENEFIT PENSION PLAN, (continued)
B) Net Pension Liability, (continued)
Pension Plan Fiduciary Net Position
Information about the pension plan's assets, deferred outflows of resources, liabilities, deferred inflows of
resources, and fiduciary net position are presented in CaIPERS' audited financial statements, which are publicly
available reports that can be obtained at CaIPERS' website under Forms and Publications, at
www.calpers.ca.gov. The plan's fiduciary net position and additions to/deductions from the plan's fiduciary net
position have been determined on the same basis used by the pension plan, which is the economic resources
measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and
payable in accordance with the terms of each plan. Investments are reported at fair value.
The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan
assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting
valuations, CaIPERS must keep items such as deficiency reserves, fiduciary self-insurance and Other Post-
Employment Benefits (OPEB) expense included as assets. These amounts are excluded for rate setting
purposes in the funding actuarial valuation. In addition, differences may result from early Comprehensive Annual
Financial Report closing and final reconciled reserves.
C) Proportionate Share of Net Pension Liability
The following table shows the Plan's proportionate share of the net pension liability over the measurement
period.
Increase(Decrease)
Plan Total Plan Fiduciary Net Plan Net Pension •
Miscellaneous Plan Pension Liability Position Liability
(a) (b) (c)_(a)-(b)
Balance at: 6/30/2014 (VD) $ 26,103,564 $ 21,673,462 $ 4,430,102
Balance at: 6/30/2015 (MD) 27,366,572 26,273,394 1,093,178
Net Changes during 2014-15 $ 1,263,008 $ 4,599,932 $ (3,336,924)
Valuation Date (VD), Measurement Date(MD).
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580
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
7) DEFINED BENEFIT PENSION PLAN, (continued)
C) Proportionate Share of Net Pension Liability, (continued)
The City's net pension liability for the Plan is measured as the proportionate share of the net pension liability.
The net pension liability of the Plan is measured as of June 30, 2015, and the total pension liability for the Plan
used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2014 rolled
forward to June 30, 2015 using standard update procedures. The City's proportion of the net pension liability
was determined by CaIPERS using the output from the Actuarial Valuation System and the fiduciary net
position, as provided in the CaIPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a
publicly available report that can be obtained at CaIPERS' website under Forms and Publications, at
www.calpers.ca.gov. The City's proportionate share of the net pension liability for the Plan as of June 30, 2014
and 2015 was as follows:
Proportionate Share-June 30, 2014 0.179248%
Proportionate Share-June 30, 2015 0.039847%
Change- Increase (Decrease) -0.139401%
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City's proportionate share of the net pension liability for the Plan as of the
measurement date, calculated using the discount rate of 7.65 percent, as well as what the net pension liability
would be if it were calculated using a discount rate that is 1 percentage-point lower (6.65 percent) or
1 percentage-point higher(8.65 percent)than the current rate:
Plan Discount Rate- 1% Current Discount Discount Rate+ 1%
(6.65%) Rate(7.65%) (8.65%)
Miscellaneous Plan's Net
Pension Liability(Asset) $ 4,820,140 $ 1,093,178 $ (1,983,863)
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.
Recognition of Gains and Losses
Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are
recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The
remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions
and are to be recognized in future pension expense.
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581
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
7) DEFINED BENEFIT PENSION PLAN, (continued)
C) Proportionate Share of Net Pension Liability,(continued)
Recognition of Gains and Losses, (continued)
The amortization period differs depending on the source of the gain or loss:
Difference between 5 year straight-line amortization
projected and actual
earnings
All other amounts Straight-line amortization over the
average expected remaining service
lives of all members that are
provided with benefits (active,
inactive and retired) as of the
beginning of the measurement
period
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years
by the total number of plan participants(active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-
Employer Plan (PERF C).
The EARSL for the Plans for the 2014-15 measurement period is 3.8 years, which was obtained by dividing the
total service years of 467,023 (the sum of remaining service lifetimes of the active employees) by 122,410 (the
total number of participants: active, inactive, and retired). Note that inactive employees and retirees have
remaining service lifetimes equal to 0. Also note that total future service is based on the members' probability of
decrementing due to an event other than receiving a cash refund.
D) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2014), the net pension liability for the plan was $4,430,102.
For the measurement period ending June 30, 2015 (the measurement date), the City incurred a pension
expense of$269,579 for the Plan.
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582
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
7) DEFINED BENEFIT PENSION PLAN, (continued)
D) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to
Pensions, (continued)
As of June 30, 2016, the City's has deferred outflows and deferred inflows of resources related to pensions as
follows:
Deferred Outflows Deferred Inflows of
of Resources Resources
Differences between Expected and
Actual Experience $ 35,027 $ -
Changes of Assumptions - (331,390)
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments - (166,130)
Change in Employer's
Proportions - (2,873,995)
Net Differences between the Employer's
Contributions and the Employer's
Proportionate Share of Contributions 2,354,716 -
Pension Contributions Subsequent to
Measurement Date 457,020 -
,Total $ 2,846,763 $ (3,371,515)
The amounts above are net of outflows and inflows recognized in the 2014-15 measurement period expense.
The $457,020 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2017.
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be
recognized in future pension expense as follows:
Measurement Period Ended June 30: Deferred Outflows/(Inflows)of
Resources
2016 $ (430,122)
2017 (427,744)
2018 (361,510)
2019 237,604
2020 -
Thereafter -
E) Payable to the Pension Plan
At June 30, 2016, the City reported a payable of$-0-for the outstanding amount of contributions to the pension
plan required for the year then ended.
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583
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
8) OTHER POST EMPLOYMENT BENEFITS
Plan Description
The City's defined benefit post-employment healthcare plan, City of Moorpark Retiree Healthcare Plan,
(MRHP), provides medical benefits to eligible retired City employees and spouses. MRHP is part of the
Public Agency portion of the California Employers' Retiree Benefit Trust Fund (CERBT), an agent
multiple-employer plan administered by CaIPERS, which acts as a common investment and
administrative agent for participating public employers within the State of California. The MRHP has a
funded status of 81.5% as of June 30, 2016. A menu of benefit provisions as well as other requirements
is established by State statute within the Public Employees' Retirement Law. MRHP selects optional
benefit provisions from the benefit menu by contract with CaIPERS and adopts those benefits through
City resolution. CaIPERS issues a Comprehensive Annual Financial Report (CAFR). The CAFR is issued
in aggregate and includes the sum of all CaIPERS plans. Copies of the CaIPERS CAFR may be obtained
from the CaIPERS Executive Office,400 P Street, Sacramento, California 95814.
Funding Policy
The contribution requirements of plan members and the City are established and may be amended by the
Council. The City contributes the Public Employees' Medical and Hospital Care Act(PEMHCA) minimum.
The City is required to contribute the annual required contribution of the employer (ARC), an amount
actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a
level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and
amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
The current ARC rate is 1.64%of the annual covered payroll.
For 2016, the City's annual OPEB cost(expense) was $83,000 for MRHP. The City's annual OPEB cost,
the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation (asset) for
2016 and the two preceding years were as follows:
THREE-YEAR TREND INFORMATION
Percentage of
Fiscal Annual OPEB OPEB Cost Net OPEB
Year Cost(AOC) Contributed Obligation (Asset)
6/30/2016 $ 83,000 100% $ (670,768)
6/30/2015 25,000 0% (109,000)
6/30/2014 168,000 100% (134,000)
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584
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
8) OTHER POST EMPLOYMENT BENEFITS, (continued)
Annual OPEB Cost and Net OPEB Obligation Calculation:
The OPEB Cost and Net OPEB Obligation (Asset)for the fiscal year 2016 was as follows:
June 30, 2016
Annual required contribution $ 81,000
Add: Interest on net OPEB obligation (8,000)
Amortization of NOO 10,000
Annual OPEB cost(expense) 83,000
Contributions made (644,768)
Increase in net OPEB obligation (561,768)
Net OPEB obligation(asset)-beginning of year (109,000)
Net OPEB obligation (asset)-end of year $ (670,768)
Funded Status and Funding Progress
The funded status of the plan as of June 30, 2015, the most recent actuarial valuation applicable to 2016,
was as follows:
(Amounts in 000's)
Actuarial Accrued Liability(AAL) $ 1,493
Actuarial Value of Plan Assets $ 1,217
Unfunded Actuarial Accrued Liability(Asset) (UAAL) $ 276
Funded Ratio(Actuarial Value of Plan Assets/AAL) 81.5%
Covered Payroll(Active Plan Members) $ 4,950
UAAL as a Percentage of Covered Payroll 5.6%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared with past expectations and new estimates are made
about the future. The schedule of funding progress, presented as required supplementary information
following the notes to the financial statements, presents multiyear trend information that shows whether
the actuarial value of the plan assets is increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits.
On October 9, 2015, the City contributed $644,768 to CERBT to pay down the UAAL.
-58-
585
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
8) OTHER POST EMPLOYMENT BENEFITS, (continued)
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
The following is a summary of the actuarial assumptions and methods:
Valuation Date June 30, 2015
Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Level Percent of Payroll
Remaining Amortization Period 15 years fixed (closed) period for plan
changes
Actuarial Assumptions:
Investment Rate of Return 7.25% Pre-funded
Aggregate Increases—3.25%
Projected Salary Increase Merit Increases—CaIPERS
1997-2007 Experience Study 4.5%
Health Care Trend Rate 4.50%
General Inflation 3.00%
9) CONDUIT DEBT-REVENUE BONDS
The City of Moorpark Mobile Home Park Revenue Bonds (Villa Del Arroyo) Series 2000 A and the City of
Moorpark Mobile Home Park Subordinate Revenue Bonds (Villa.Del Arroyo) Series 2000 B were issued
in the amounts of$12,740,000 and $2,635,000, respectively. Both issuances were dated May 19, 2000.
The Series A bonds were issued to fund a loan to Augusta Homes, a California nonprofit public benefit
corporation, to finance the acquisition of the Villa Del Arroyo Mobile Home Park. The Series B bonds
were issued for the same purpose but are subordinate to the Series A bonds. On May 31, 2012 these
taxable subordinate bonds were refunded for $13,085,000 and $375,000, respectively. The total bonds
outstanding at June 30, 2016, totaled $12,275,000.
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,
2016, totaled $13,868,570.
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586
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
9) CONDUIT DEBT-REVENUE BONDS, (continued)
Each of the bond programs described above do not constitute an indebtedness of the City, and there is
neither a legal nor a moral obligation on the part of the City to make payments on such bonds from any
source other than the revenues and assets pledged therefore. The programs are completely administered
by the Trustees without any involvement by the City. Accordingly, these programs and the bonds issued
there under have been excluded from the accompanying basic financial statements.
10) SPECIAL ASSESSMENT BONDS
A) Assessment District 92-1 (Mission Bell Plaza)
On April 1, 1994, the City sponsored the issuance of special assessment bonds to finance certain capital
improvements for the Mission Bell Plaza project. These bonds, totaling $2,595,000, of which $735,000
and $1,475,000 mature in 2014 and 2023, respectively, were issued under the 1915 Improvements
Bonds Act and are obligations against the properties in the assessment district. The special assessment,
which is collected with other property related taxes as part of the secured property tax bill for properties in
the assessment district, will be forwarded to an independent bank that serves as the paying agent. These
bonds do not constitute an indebtedness of the City, and the City is not liable for their repayment.
Accordingly, these special assessment bonds payable have been excluded from the accompanying basic
financial statements. The unpaid principal balance on such bonds is$845,000 at June 30, 2016.
B) Community Facilities District No. 97-1 (Carlsberg)
On July 1, 1997, the City issued bonds to finance the acquisition and construction of public improvements
within the City of Moorpark Community Facilities District No. 97-1. These bonds, totaling $7,645,000,
were issued pursuant to the Mello-Roos Community Facilities Act of 1982. The bonds mature on
September 1, 2027 with interest payable at rates ranging from 4.4 percent to 6 percent per annum on
March 1, and September 1 of each year commencing March 1, 1998. On February 1, 2012 the City
issued Community Facilities District No. 97-1 (Carlsberg) Special Tax Refunding Bonds-Series 2012 for
$5,720,000 to refund the original 1997 bond issue. The Special Tax Refunding Bonds-Series 2012 bonds
mature on September 1, 2027 with interest payable at rates ranging from 2.0 percent to 4.5 percent per
annum on March 1, and September 1, of each year commencing September 1, 2012. The City is not
liable under any circumstance for the repayment of the debt, but is only acting as agent for the property
owners in collecting the assessments and special taxes, forwarding collections to fiscal agents to pay the
bondholders and initiating foreclosure proceedings, if appropriate.Accordingly, these bonds payable have
been excluded from the accompanying basic financial statements. The unpaid principal balance of the
Special Tax Refunding Bonds-Series 2012 is$4,625,000 at June 30, 2016.
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
10) SPECIAL ASSESSMENT BONDS, (continued)
C) Community Facilities District No. 2004-1 (Moorpark Highlands)
During fiscal year 2006/07, the City issued bonds to construct and acquire certain public facilities of
benefit to the Community Facilities District No. 2004-1. The bonds, totaling $38,030,000, were issued
pursuant to the Mello-Roos Community Facilities Act of 1982. The bonds mature on September 1, 2038
with interest payable at rates ranging from 4.0 percent to 5.3 percent per annum, on March 1 and
September 1 of each year. The City is not liable under any circumstance for the repayment of the debt,
but is only acting as agent for the property owners in collecting the assessments and special taxes,
forwarding collections to fiscal agents to pay the bondholders and initiating foreclosure proceedings, if
appropriate. Accordingly, these bonds payable have been excluded from the accompanying basic
financial statements. In February 2014 these bonds were refinanced and refunded with the issuance of a
refunding Series A-2014 and Junior Series B-2014. The unpaid principal balance of the newly refinanced
debt is$11,490,000 at June 30, 2016.
11) RISK MANAGEMENT
A) Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City of Moorpark is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
(Authority). The Authority is composed of 116 California public entities and is organized under a joint
powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority
is to arrange and administer programs for the pooling of self-insured losses, to purchase excess
insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of
coverage. The California JPIA began covering claims of its members in 1978. Each member government
has an elected official as its representative on the Board of Directors. The Board operates through a
nine-member Executive Committee.
B) Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective
adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Retrospective
adjustments are scheduled to continue indefinitely on coverage years 2012-13 and prior, until all claims
incurred during those coverage years are closed, on a pool-wide basis. This subsequent cost re-
allocation among members, based on actual claim development, can result in adjustments of either
refunds or additional deposits required. Coverage years 2013-14 and forward are not subject to routine
annual retrospective adjustment.
The total funding requirement for self-insurance programs is estimated using actuarial models and pre-
funded through the annual contribution. Costs are allocated to individual agencies based on exposure
(payroll) and experience (claims) relative to other members of the risk-sharing pool. Additional
information regarding the cost allocation methodology is provided.
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
11) RISK MANAGEMENT(continued)
B) Self-Insurance Programs of the Authority, (continued)
Liability
In the liability program claims are pooled separately between police and general government exposures.
(1) The payroll of each member is evaluated relative to the payroll of other members. A variable
credibility factor is determined for each member, which establishes the weight applied to payroll and the
weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to
$30,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the
first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer.
(4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation
within the first and second loss layers.
For 2015-16 the Authority's pooled retention is$2 million per occurrence, with reinsurance to$20 million,
and excess insurance to $50 million. The Authority's reinsurance contracts are subject to the following
additional pooled retentions: (a) $2.5 million annual aggregate deductible in the $3 million x/s $2 million
layer, and (b) $3 million annual aggregate deductible in the $5 million x/s $10 million layer. There is a
third annual aggregate deductible in the amount of $2.5 million in the $5 million x/s $5 million layer,
however it is fully covered under a separate policy and therefore not retained by the Authority.
The overall coverage limit for each member, including all layers of coverage, is $50 million per
occurrence. Costs of covered claims for subsidence losses have a sub-limit of $30 million per
occurrence.
Workers' Compensation
In the workers' compensation program claims are pooled separately between public safety (police and
fire) and general government exposures. (1) The payroll of each member is evaluated relative to the
payroll of other members. A variable credibility factor is determined for each member, which establishes
the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of
losses includes incurred costs up.to$50,000 for each occurrence and is evaluated as a percentage of the
pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs
from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool's total
incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed
based on the outcome of cost allocation within the first and second loss layers.
For 2015-16 the Authority's pooled retention is $2 million per occurrence, with reinsurance to statutory
limits under California Workers' Compensation Law.
Employer's Liability losses are pooled among members to $2 million. Coverage from $2 million to $5
million is purchased as part of a reinsurance policy, and Employer's Liability losses from $5 million to$10
million are pooled among members.
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City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
11) RISK MANAGEMENT, (continued)
C) Purchased Insurance
Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program which is available through the
Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm
drains owned by the City. Coverage is on a claims-made basis. There is a $50,000 deductible. The
Authority has a limit of $50 million for the 3-year period from July 1, 2014 through July 1, 2017. Each
member of the Authority has a$10 million sub-limit during the 3-year term of the policy.
Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance protection
is underwritten by several insurance companies. City property is currently insured according to a
schedule of covered property submitted by the City to the Authority. City property currently has all-risk
property insurance protection in the amount of$52,634,443. There is a $5,000 deductible per occurrence
except for non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage
are paid annually and are not subject to retrospective adjustments.
Crime Insurance
The City purchases crime insurance coverage in the amount of$1,000,000 with a$2,500 deductible. The
fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to
retrospective adjustments.
D) Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or
judgments that exceeded pooled or insured coverage. There were also no significant reductions in
pooled or insured liability coverage in 2015-16.
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590
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
12) CLASSIFICATION OF NET POSITION AND FUND BALANCE
A) Net position
In the Government-wide Financial Statements, net position is classified in the following categories:
Net Investment in Capital Assets - This category groups all assets, including infrastructure, into one
component of net position.Accumulated depreciation on these assets reduces this category.
Restricted Net Position - This category presents external restrictions imposed by creditors, grantors,
contributors, or laws and regulations of other governments and restrictions imposed by law through
constitutional provisions or enabling legislation.
Unrestricted Net Position - This category represents the net position of the City that is not externally
restricted for any project or other purpose.
B) Fund Balance
The fund balances in governmental funds are reported in classifications that comprise a hierarchy based
primarily on the extent to which the City is bound to honor constraints on the specific purposes for which
amounts in those funds can be spent. The City considers restricted fund balance to have been spent first
when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is
available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the
unrestricted classifications of fund balance could be used, the City considers committed amounts to be
reduced first, followed by assigned amounts and then unassigned amounts. A City Council Ordinance or
Resolution is the formal action that would effectively commit fund balances for a particular purpose.
The City's governmental fund balances at June 30, 2016, are presented below:
Street and Assessment Parks/Public
General Traffic Safety Districts Facilities
Nonspendable:
Prepaid items $ 59,147 $ -
Due from other funds and governments 95,716 - - -
Restricted for:
Public services - 23,123,944 5,111,526 -
Recreation services - - - 5,845,746
Public safety - - - -
Low and moderate income housing - - - -
Committed to:
Library services - - - -
Assigned to:
Capital projects - - - -
Unassigned 2,865,439 - - -
Total fund balances(deficit) $ 3,020,302 $ 23,123,944 $ 5,111,526 $ 5,845,746
(Continued on next page)
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591
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
12) CLASSIFICATION OF NET POSITION AND FUND BALANCE, (continued)
B) Fund Balance, (continued)
Low-Mod
Income Community Police
Housing Asset Development Endowment Facilities Fee
Nonspendable:
Prepaid items $ - $ - $ - $ -
Due from other funds and governments - - - -
Restricted for:
Public services - - - -
Recreation services - - - -
Public safety - - - -
Low and moderate income housing 7,717,566 - - -
Committed to:
Library services - - - -
Assigned to:
Capital projects - - 14,310,167 -
Unassigned - (99) - (1,326,553)
Total fund balances(deficit) $ 7,717,566 $ (99) $ 14,310,167 $ (1,326,553)
(Continued on next page)
- -65-
. 592
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
12) CLASSIFICATION OF NET POSITION AND FUND BALANCE, (continued)
B) Fund Balance, (continued)
Nonmajor Total
Special Governmental Governmental
Projects Funds Funds
Nonspendable:
Prepaid items $ - $ - $ 59,147
Due from other funds and governments - - 95,716
Restricted for:
Public services - 14,989,282 43,224,752
Recreation services - 3,894,114 9,739,860
Public safety - 167,569 167,569
Low and moderate income housing - 5,189,842 12,907,408
Committed to:
Library services - 736,185 736,185
Assigned to:
Capital projects 27,162,429 7,061,104 48,533,700
Unassigned - (177,006) 1,361,781
Total fund balances(deficit) $ 27,162,429 $ 31,861,090 $ 116,826,118
Deficit Fund Balances
The following major governmental funds has a deficit at June 30, 2016:
Community Development Special Revenues Fund $ (99)
Police Facilities Fees Capital Projects Fund (1,326,553)
The following non-maior governmental fund has a deficit at June 30, 2016:
Tierra Rejada/Spring Road A.O.C. Special Revenue Fund $ (177,006)
Management expects these deficits to be eliminated through future revenues.
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593
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
13) COMMITMENTS AND CONTINGENCIES
A) Commitments
The City has contracts with County of Ventura for various services, most notably law enforcement. These
service contracts are renegotiated annually and cancelable by the City or the County on May 31 of each
year after 30 days' notice has been given. These are based on an hourly rate and adjusted throughout
the fiscal year. The estimated amount of construction contract obligations at year-end is $5,367,793. This
amount represents all outstanding encumbrances relating to capital projects.
B) Contingencies
There are certain legal actions pending against the City which management considers incident to normal
operations, some of which seek substantial monetary damages. In the opinion of management, after
consultation with counsel, the ultimate resolution of such actions is not expected to have a significant
effect on the financial position or the results of operations of the City.
The City has received State and Federal funds for specific purposes that are subject to review by the
grantor agencies. Although such audits could generate expenditure disallowance under the terms of the
grants, it is believed that any disallowed amounts will not be material.
C) Successor Agency
Deductions (expenses) incurred by SARA for the year ended June 30, 2016 (and subsequent years in
which the Agency is in operation) are subject to review by various State agencies and the County in
which the Agency resides. If any expenses incurred by the Agency are disallowed by the State agencies
or County, the City, acting as the Agency could be liable for the repayment of the disallowed costs from
either its own funds or by the State withholding remittances normally paid to the City. The amount, if any,
of expenses that may be disallowed by the State agencies or County cannot be determined at this time,
although the Agency expects such amounts, if any, to be immaterial. On February 12, 2015, the State of
California Department of Finance approved the Agency's Long Range Property/Management Plan.
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594
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK(SARA)
On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26, ("the Bill") that
provides for the dissolution of all redevelopment agencies in the State of California. Most of California
cities had established a redevelopment agency that was included in the reporting entity of the city as a
blended component unit (since the City Council, in many cases, also served as the governing board for
those agencies). The Bill provided that upon dissolution of a redevelopment agency, either the city or
another unit of local government will agree to serve as the"Successor Agency"to administer assets, pay
and adhere to the provisions of enforceable obligations, and to expeditiously settle the affairs of the
dissolved redevelopment agency. If the city declines to accept the role of Successor Agency, other local
agencies may elect to perform this role. If no local agency accepts the role of Successor Agency, the
Governor is empowered by the Bill to establish a local"designated local authority"to perform this role. On
January 4, 2012, the City Council met and created the SARA in accordance with the Bill as part of the
City of Moorpark Resolution Number 2012-3079.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of
California cannot enter into new projects, obligations or commitments. Subject to the control of a newly
established oversight board, remaining assets could only be used to pay enforceable obligations in
existence at the date of dissolution (including the completion of any unfinished projects that were subject
to legally enforceable, contractual commitments). In future fiscal years, successor agencies will only be
allocated tax increment revenue in the amount that is necessary to pay the estimated annual installment
payments on enforceable obligations of the former redevelopment agency until all enforceable obligations
of the prior redevelopment agency have been paid in full.
The Bill directs the State Controller of the State of California to review the propriety of any transfers of
assets between redevelopment agencies and other private and public bodies that occurred after January
1, 2011. If the body that received such transfers is not contractually committed to a third party for the
expenditure or encumbrance of those assets, the State Controller is required to order the available assets
to be transferred to the public body designated as the successor agency by the Bill. In accordance with
the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011), all
redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity
on February 1, 2012. After the date of dissolution, January 31, 2012, the assets, liabilities, and activities
of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the
financial statements of the City. The private-purpose trust fund keeps its activities under the accrual
method of accounting.
In accordance with AB 1484 and in compliance with the California Health & Safety Code, the City elected
to be Housing Successor to the housing activities and functions of the former Agency. Accordingly, all
housing assets, as defined by the Health and Safety Code Section 34176 (e), were transferred to the City
in a specially created fund shown as a major fund in 2015, named "Low-Mod Income Housing Asset
Fund" in the Governmental Funds Financial Statements.
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595
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30, 2016
14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK (SARA), (continued)
LONG TERM DEBT
The following is a schedule of changes in long-term liabilities for the year ended June 30, 2016:
Beginning Ending Due within
Balance Increases Decreases Balance one year
Bonds payable:
2006 Tax allocation bonds $ 11,500,000 $ - $ (45,000) $ 11,455,000 $ 45,000
2014 Tax allocation refunding bonds 13,420,000 - (720,000) 12,700,000 730,000
Subtotal bonds payable 24,920,000 - (765,000) 24,155,000 775,000
Plus/(less)deferred amounts:
2006 Bonds discount (233,203) - 10,846 (222,357)
2014 Bonds premium 499,881 - (29,403) 470,478 -
Successor agency
long-term liabilities $ 25,186,678 $ - $ (783,557) $ 24,403,121 $ 775,000
Combined annual debt service requirements to maturity for all bonds are as follows:
Year Ending Principal Interest Total
2017 $ 775,000 $ 924,969 $ 1,699,969
2018 795,000 904,704 1,699,704
2019 820,000 880,004 1,700,004
2020 695,000 853,554 1,548,554
2021 725,000 825,154 1,550,154
2022-2026 4,030,000 3,697,719 7,727,719
2027-2031 4,815,000 2,878,786 7,693,786
2032-2036 6,640,000 1,826,963 8,466,963
2037-2039 4,860,000 325,063 5,185,063
Total $ 24,155,000 $ 13,116,916 $ 37,271,916
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596
City of Moorpark
Notes to the Basic Financial Statements
Year Ended June 30,2016
14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK(SARA), (continued)
LONG TERM DEBT, (continued)
A) 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 was recorded in the Agency Debt Service Fund.
Cash and investments in the custody of the fiscal agent are restricted by the bond resolutions for payment
of principal and interest on the 2006 Bonds. The outstanding balance of the bonds was transferred to
SARA on February 1, 2012 as part of the former Agency's dissolution in accordance with AB X1 26 and
AB 1484. SARA is in compliance with the covenants contained in the debt indenture, which require the
establishment of certain specific accounts for the 2006 Bonds. In July 2016, the Successor Agency
issued the 2016 Tax Allocation Refunding Bonds to refund the entire outstanding balance of the 2006 Tax
Allocation Bonds series. The refunding resulted in annual savings to the debt service of approximately
$200,000.
B) 2014 Tax Allocation Bonds
In November 2014, SARA issued a $13,420,000 aggregated principal amount of Moorpark
Redevelopment Project 2014 Bonds. The purpose of the 2014 Bonds was to refund the 1999 Bonds and
the 2001 Bonds, previously issued by the former Agency. The 2014 Bonds bear interest at rates ranging
from 2.000% to 3.375% per annum, semi-annually on each April 1 and October 1 of each year,
commencing on April 1, 2015. The 2014 Bonds are payable from and secured by, the tax revenues to be
derived from taxes deposited into the Successor Agency's Redevelopment Obligation Retirement Fund
established pursuant to Health and Safety Code section 34170.5(a). SARA is in compliance with the
covenants contained in the debt indenture, which require the establishment of certain specific accounts
for the 2014 Bonds.
15) EMPLOYEES RETIREMENT PLAN
PARS Alternate Retirement System (ARS) (Plan)
The City currently offers an alternative plan for employees classified as part-time, seasonal or temporary
(PST). The plan is administered by the Public Agency Retirement Services (PARS) and is a deferred
compensation plan created in accordance with Internal Revenue Code Section IRC 457. Pursuant to the
IRC 457 subsection (g): all amounts of compensation deferred under the plan, all property, or rights are
solely the property and rights of the employee and beneficiaries of the plan. Deferred compensation
funds are not subject to claims of the City's general creditor; consequently the assets and related
liabilities of the plan are not included within the City's financial statements. The City contributes 3.75%
percent of the employee's compensation. In addition, each participant is required to contribute 3.75% of
their salary. During the current fiscal year,the City contributed $9,555 to the plan.
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P-aK eq /k
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REQUIRED SUPPLEMENTARY INFORMATION
598
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule-Budget and Actual-General Fund
Year Ended June 30, 2016
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Property Taxes
Current Secured $ 3,250,000 $ 3,325,000 $ 3,337,171 $ 12,171
Current Unsecured 110,000 110,000 113,251 3,251
Prior Year Secured-Unsecured 10,000 10,000 5,571 (4,429)
Supplemental Secured-Unsecured 50,000 50,000 88,241 38,241
Real Property Transfer Tax 225,000 225,000 306,754 81,754
Homeowners Property Exemption 40,000 40,000 37,431 (2,569)
Parcel Tax 260,000 300,000 332,024 32,024
Property Taxes-VLF 3,175,000 3,242,000 3,242,036 36
Other Property Taxes 200,000 300,000 461,458 161,458
Total Property Taxes 7,320,000 7,602,000 7,923,937 321,937
Sales Taxes
Sales and Use Tax 3,450,000 3,450,000 3,316,402 (133,598)
Sales Tax Compensation 200,000 200,000 730,083 530,083
Total Sales Taxes 3,650,000 3,650,000 4,046,485 396,485
Franchise Fees
Cable TV 425,000 425,000 446,744 21,744
Edison 300,000 300,000 310,933 10,933
Gas 90,000 90,000 80,217 (9,783)
Oil - - 4,242 4,242
PEG Fees 50,000 50,000 54,023 4,023
WM 155,000 - - -
GI Rubbish 200,000 200,000 199,277 (723)
Moorpark Rubbish 120,000 120,000 118,011 (1,989)
Landfill Local Impact Fee 55,000 55,000 55,013 13
CIWMP Fees 10,000 10,000 8,472 (1,528)
Total Franchise Fees 1,405,000 1,250,000 1,276,932 26,932
Licenses and Permits
Business Registration 125,000 125,000 122,969 (2,031)
Filming Permits 10,000 10,000 7,350 (2,650)
Animal Licenses - - 61,223 61,223
NPDES Business Inspection Fees 8,000 8,000 9,582 1,582
Total Licenses and Permits 143,000 143,000 201,124 58,124
(Continued on next page)
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599
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule-Budget and Actual -General Fund (continued)
Year Ended June 30,2016
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Fines and Forfeitures
Municipal Codes Fines 250,000 267,000 252,881 (14,119)
Animal Control Fines 1,000 1,000 3,770 2,770
Forfeitures and Penalties 1,000 1,000 - (1,000)
Total Fines and Forfeitures 252,000 269,000 256,651 (12,349)
Use of Money and Property
Investment Earnings 450,000 450,000 694,920 244,920
Rents and Concessions 125,000 125,000 146,099 21,099
Rents Tenants 143,378 145,000 151,419 6,419
Other Earnings and Rents 6,000 6,000 5,682 (318)
Total Use of Money and Property 724,378 726,000 998,120 272,120
Charges for Services
Other Administrative Services 125,000 125,000 95,135 (29,865)
Administrative Fees 250,000 250,000 250,000 -
Administrative Fees-CFD - - 42,500 42,500
Park and Facility Use Fee 103,100 103,100 145,056 41,956
Contract Class Registration Fees 246,000 246,000 227,785 (18,215)
Franchise Change Admin Fee 20,000 - - -
HHW-Community Fee 137,000 - - -
Other Community Fee 1,300 1,300 - (1,300)
League Fees - - 95,996 95,996
Recreation Events Fees 270,150 270,150 290,256 20,106
Other Recreation Fees 6,500 6,500 14,917 8,417
Advertising in Brochure 12,000 12,000 10,435 (1,565)
Other Community Services Fees - 1,500 2,511 1,011
Photocopying 1,000 1,000 415 (585)
Sale of Documents 1,000 1,000 72 (928)
Special Police Department Services 40,000 40,000 58,070 18,070
NSF Fees and Charges 2,000 1,500 395 (1,105)
Planning Time Charges 20,000 20,000 15,786 (4,214)
Total Charges for Services 1,235,050 1,079,050 1,249,329 170,279
Intergovernmental
Motor Vehicle in Lieu 16,000 16,000 14,415 (1,585)
Other State Funds 20,000 20,000 56,609 36,609
County Grants 25,000 25,000 21,282 (3,718)
Law Enforcement Grants 15,000 15,000 - (15,000)
Other Federal Revenue Grants 15,000 15,000 14,393 (607)
Total Intergovernmental 91,000 91,000 106,699 15,699
(Continued on next page)
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600
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule-Budget and Actual -General Fund (continued)
Year Ended June 30,2016
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Other Revenues
Contributions-Donations 10,000 11,500 1,500 (10,000)
Revenues not classified elsewhere 10,000 10,000 5,027 (4,973)
Expense Reimursements 210,000 250,000 871,889 621,889
Restitutions-Insurance Proceeds 20,000 20,000 219,073 199,073
Total Other Revenues 250,000 291,500 1,097,489 805,989
Total revenues 15,070,428 15,101,550 17,156,766 2,055,216
EXPENDITURES
General government 3,305,410 3,612,592 1,361,720 2,250,872
Public safety6,919,918 6,919,917 6,599,431 320,486
Public services 2,288,421 3,337,084 2,024,451 1,312,633
Parks and recreation 2,063,431 2,820,076 1,960,319 859,757
Capital Outlay 277,179 353,799 63,741 290,058
Total expenditures 14,854,359 17,043,468 12,009,662 5,033,806
Excess(deficientcy)of revenues
over(under)expenditures 216,069 (1,941,918) 5,147,104 7,089,022
OTHER FINANCING SOURCES(USES)
Transfers out (2,769,195) (2,891,166) (5,786,820) (2,895,654)
Total other financing uses (2,769,195) (2,891,166) (5,786,820) (2,895,654)
Net change in fund balance (2,553,126) (4,833,084) (639,716) 4,193,368
Fund balance, beginning of year 3,660,018 3,660,018 3,660,018 -
Fund balance, end of year $ 1,106,892 $ (1,173,066) $ 3,020,302 $ 4,193,368
-73- -
601
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule-Budget and Actual -Street and Traffic Safety
Special Revenue Fund
Year Ended June 30, 2016
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property
Investment Earnings $ 281,000 $ 281,000 $ 511,615 $ 230,615
Rents Tenants - - 38,925 38,925
Total Use of Money and Property 281,000 281,000 550,540 269,540
Charges for Services
Other Development Fees 1,879,000 1,879,000 1,562,060 (316,940)
Total Charges for Services 1,879,000 1,879,000 1,562,060 (316,940)
Other revenue - - 100 100
Total revenues 2,160,000 2,160,000 2,112,700 (47,300)
EXPENDITURES
Public Services 434,318 582,748 461,220 121,528
Capital Outlay 1,474,142 1,567,902 114,877 1,453,025
Total expenditures 1,908,460 2,150,650 576,097 1,574,553
Excess(deficiency)of revenues
over(under)expenditures 251,540 9,350 1,536,603 1,527,253
OTHER FINANCING SOURCES(USES)
Transfers out - (54,036) (54,036) -
Total other financing uses - (54,036) (54,036) -
Net change in fund balance 251,540 (44,686) 1,482,567 1,527,253
Fund balance, beginning of year 21,641,377 21,641,377 21,641,377 -
Fund balance,end of year $ 21,892,917 $ 21,596,691 $ 23,123,944 $ 1,527,253
-74- -
602
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule-Budget and Actual -Assessments Districts
Special Revenue Fund
Year Ended June 30, 2016
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property $ 84,000 $ 84,000 $ 118,848 $ 34,848
Charges for Services 8,100 8,100 6,930 (1,170)
Maintenance Assessments 2,742,973 2,742,973 2,737,711 (5,262)
Other Revenues 5,000 5,000 2,285 (2,715)
Total revenues 2,840,073 2,840,073 2,865,774 25,701
EXPENDITURES
Public Services 402,904 402,904 382,718 20,186
Parks and Recreation 5,693,135 5,693,135 4,129,031 1,564,104
Capital Outlay 36,605 36,605 6,398 30,207
- Total expenditures 6,132,644 6,132,644 4,518,147 1,614,497
Excess (deficiency)of revenues
over(under)expenditures (3,292,571) (3,292,571) (1,652,373) 1,640,198
OTHER FINANCING SOURCES(USES)
Transfers in 2,051,313 2,051,313 1,668,306 (383,007)
Total other financing sources 2,051,313 2,051,313 1,668,306 (383,007)
Net change in fund balance (1,241,258) (1,241,258) 15,933 1,257,191
Fund balance, beginning of year 5,095,593 5,095,593 5,095,593 -
Fund balance, end of year $ 3,854,335 $ 3,854,335 $ 5,111,526 $ 1,257,191
- -75-
603
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule-Budget and Actual-Parks/Public Facilities
Special Revenue Fund
Year Ended June 30, 2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property $ 34,000 $ 34,000 $ 147,941 $ 113,941
Charges for Services 1,466,000 1,466,000 1,518,009 52,009
Total revenues 1,500,000 1,500,000 1,665,950 165,950
EXPENDITURES
Public Services - - 45,040 (45,040)
Parks and Recreation 151,600 151,600 - 151,600
Capital Outlay 150,265 150,265 83,558 66,707
Total expenditures 301,865 301,865 128,598 173,267
Excess(deficiency)of revenues
over(under)expenditures 1,198,135 1,198,135 1,537,352 339,217
OTHER FINANCING SOURCES(USES)
Transfers out (17,115) (17,115) (17,115) -
Total other financing (uses) (17,115) (17,115) (17,115) -
Net change in fund balance 1,181,020 1,181,020 1,520,237 339,217
Fund balance, beginning of year 4,325,509 4,325,509 4,325,509 -
Fund balance,end of year $ 5,506,529 $ 5,506,529 $ 5,845,746 $ 339,217
- -76-
604
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule-Budget and Actual-Low-Mod Income Housing Asset Fund
Special Revenue Fund
Year Ended June 30, 2016
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property $ 3,000 $ 3,000 $ 4,590 $ 1,590
Charges for Services 19,800 19,800 19,800 -
Other Revenues - - 246 246
Total revenues 22,800 22,800 24,636 1,836
EXPENDITURES
General Government 50,000 50,000 85 49,915
Public Services 58,670 62,462 17,892 44,570
Debt Service:
Interest 24,500 24,500 22,082 2,418
Total expenditures 133,170 136,962 40,059 96,903
Excess(deficiency)of revenues
over(under)expenditures (110,370) (114,162) (15,423) 98,739
OTHER FINANCING SOURCES(USES)
Transfers in - - 89,309 89,309
Total other financing sources - - 89,309 89,309
Net change in fund balance (110,370) (114,162) 73,886 188,048
Fund balance, beginning of year 7,643,680 7,643,680 7,643,680 -
Fund balance, end of year $ 7,533,310 $ 7,529,518 $ 7,717,566 $ 188,048
- -77-
605
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule-Budget and Actual -Community Development
Special Revenue Fund
Year Ended June 30,2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Licenses and Permits $ 606,300 $ 606,300 $ 908,012 $ 301,712
Fines and Forfeitures - - 1,110 1,110
Charges for Services 748,300 750,550 851,775 101,225
Other Revenue - - 54,298 54,298
Total revenues 1,354,600 1,356,850 1,815,195 458,345
EXPENDITURES
Public Services 2,400,380 2,559,019 2,480,939 78,080
Capital Outlay - - 540 (540)
Total expenditures 2,400,380 2,559,019 2,481,479 77,540
Excess(deficiency)of revenues
over(under)expenditures (1,045,780) (1,202,169) (666,284) 535,885
OTHER FINANCING SOURCES(USES)
Transfers in 837,781 837,781 666,185 (171,596)
Total other financing sources 837,781 837,781 666,185 (171,596)
Net change in fund balance (207,999) (364,388) (99) 364,289
Fund balance, beginning of year - - - -
Fund balance(deficit),end of year $ (207,999) $ (364,388) $ (99) $ 364,289
- -78-
606
City of Moorpark
Required Supplementary Information
Budgetary Comparison Schedule-Budget and Actual-Endowment Special Revenue Fund
Year Ended June 30, 2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property $ 50,000 $ 62,000 $ 390,265 $ 328,265
Charges for Services 1,320,000 1,320,000 1,310,186 (9,814)
Intergovernmental - - 23,529 23,529
Total revenues 1,370,000 1,382,000 1,723,980 341,980
EXPENDITURES
Public Services 197,050 275,200 56,140 219,060
Capital Outlay 208,291 1,370,004 911,777 458,227
Total expenditures 405,341 1,645,204 967,917 677,287
Excess(deficiency)of revenues
over(under)expenditures 964,659 (263,204) 756,063 1,019,267
Net change in fund balance 964,659 (263,204) 756,063 1,019,267
Fund balance, beginning of year 13,554,104 13,554,104 13,554,104 -
Fund balance,end of year $ 14,518,763 $ 13,290,900 $ 14,310,167 $ 1,019,267
-79-
607
City of Moorpark
Required Supplementary Information
Other Post-Employment Benefits -Schedule of Funding Progress
Year Ended June 30, 2016
Schedule of Funding Progress for MRHP(Amounts in 000's)
Entry Age Unfunded
Actuarial Actuarial UAAL as a%of
Actuarial Actuarial Value Accrued Liability Accrued Liability Funded Ratio Annual Covered Covered Payroll
Valuation Date of Assets(a) (b) (b-a) (a/b) Payroll(c) ((b-a)/c)
6/30/2008 $ - $ 364 $ 364 0.0% $ 4,519 8.1%
6/30/2010 487 590 103 82.5% 5,066 2.0%
6/30/2013 877 863 (14) 101.6% 4,890 -0.3%
6/30/2015 1,217 1,493 276 81.5% 4,950 5.6%
-80-
608
City of Moorpark
Required Supplementary Information
Schedule of the City's Proportionate Share of the Plan's Net Pension Liability
and Related Ratios as of the Measurement Date - Last 10 Years*
Year Ended June 30,2016
Fiscal Year End 6/30/2016 6/30/2015
Measurement Date 6/30/2015 6/30/2014
Employer's Proportion of the Collective Net Pension Liability' 0.015926% 0.071195%
Employer's Proportionate Share of the Collective Net Pension Liability $ 1,093,178 $ 4,430,102
Employer's Covered Payroll2 $ 5,015,277 $ 5,084,665
Employer's Proportionate Share of the Collective Net Pension Liability as a
Percentage of the Employer's Covered Payroll 21.80% 87.13%
Pension Plan's Fiduciary Net Position as a Percentage of the Total Pension Liability 78.40% 79.82%
'Proportion of the collective net pension liability represents the plan's proportion of PERF C,which includes
both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.
2 Covered payroll is defined as the payroll on which contributions to a pension plan are based,in accordance with GASB 82.
Measurement period 2013-14(fiscal year 2015)was the 1st year of implementation,therefore,only two
years are shown.
-81-
609
City of Moorpark
Required Supplementary Information
Schedule of Plan's Contributions-Last 10 Years*
Year Ended June 30, 2016
Fiscal Year Ending
6/30/2016 6/30/2015
Actuarially Determined Contributions $ 456,568 $ 547,265
Contributions in Relation to the Actuarilly Determined Contributions 456,568 4,147,265
Contribution Deficiency(Excess) $ - $ (3,600,000)
Employer's Covered Payroll' ,$ 4,750,631 $ 5,015,277
Contributions as a Percentage of Covered Payroll 9.61% 82.69%
'Covered payroll is defined as the payroll on which contributions to a pension plan are based,in accordance with GASB 82.
Notes to Schedule:
Change in Benefit Terms:None
Change in Assumptions:The discount rate was changed from 7.5 percent(net of administrative expense)to 7.65 percent
to correct for an adjustment to exclude administrative expense. -
*Measurement period 2013-14(fiscal year 2015)was the 1st year of implementation,therefore,only two
years are shown.
-82-
610
City of Moorpark
Notes to the Required Supplementary Information
Year Ended June 30, 2016
Budgetary Accounting
The City adopts an annual budget on a basis consistent with GAAP for all governmental funds. The City
Manager is required to prepare and submit to the City Council the annual budget of the City and
administer it thereafter. All annual appropriations lapse at fiscal year-end. Throughout the year, the City
'Council made several supplementing budgetary adjustments to various funds. These adjustments
resulted in a net appropriation increase of $11,048,505. This increase resulted primarily from additional
appropriations to various construction in progress projects, acquisition of property, prepayments of certain
liabilities, bond refunding and re-budgeted projects and amounts carried over from Fiscal Year 2014/15
as continuing appropriations.
-83-
611
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SUPPLEMENTARY INFORMATION
612
This page intentionally left blank.
613
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual -Police Facilities Fee Major Capital Projects Fund
Year Ended June 30,2016
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property
Investment Earnings $ - $ - $ 1,392 $ 1,392
Total Use of Money and Property - - 1,392 1,392
Charges for Services
Police Facilities Fee 158,000 158,000 99,619 (58,381)
Total Maintenance Assesment 158,000 158,000 99,619 (58,381)
Total revenues 158,000 158,000 101,011 (56,989)
Net change in fund balance 158,000 158,000 101,011 (56,989)
Fund balance(deficit), beginning of year (1,427,564) (1,427,564) (1,427,564) -
Fund balance(deficit), end of year $ (1,269,564) $ (1,269,564) $ (1,326,553) $ (56,989)
-84- -
614
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balances
Budget and Actual—Special Projects Major Capital Projects Fund
Year Ended June 30,2016
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
EXPENDITURES
General government $ - $ - $ 61,369 $ (61,369)
Total expenditures - - 61,369 (61,369)
Excess(deficiency)of revenues
over expenditures - - (61,369) (61,369)
OTHER FINANCING SOURCES(USES)
Transfers in - - 2,841,245 2,841,245
Transfers out (257,262) (257,262) -
Total other financing sources(uses) - (257,262) 2,583,983 2,841,245
Net change in fund balance - (257,262) 2,522,614 2,779,876
Fund balance(deficit), beginning of year 24,639,815 24,639,815 24,639,815 -
Fund balance(deficit),end of year $ 24,639,815 $ 24,382,553 $ 27,162,429 $ 2,779,876
-85-
615
City of Moorpark
Non-Major Governmental Funds
June 30, 2016
SPECIAL REVENUE FUNDS
Library Services Fund - is used to account for the financial resources for the operation of the City's
public library system. Sources of revenue are a percentage of property taxes, library fines, federal and
state grant funds, gifts, donations and fees for services.
Traffic Safety Fund - is used to account for revenues collected from traffic fines and forfeitures, which
are used for crossing guards and parking enforcement.
Affordable Housing - is used to account for grants used for development of affordable housing units.
Sources of revenue are grants, developer fees, and rental income.
Tierra Rejada/Spring Road A.O.0 Fund - is used to account for the financial resources for capital
projects related to streets and other improvements within the Tierra Rejada & Spring Road project area.
Sources of revenue are development fees.
Casey/Gabbert Road A.O.0 Fund - is used to account for the financial resources for capital projects
related to streets and other improvements within the Casey & Gabbed project area. Sources of revenue
are development fees.
Los Angeles A.O.0 Fund - is used to account for the financial resources for capital projects related to
streets and other improvements within the Los Angeles project area. Sources of revenue are
development fees.
Freemount Storm Drain A.O.0 Fund - is used to account for the financial resources for capital projects
related to streets and other improvements within the Freemont Storm Drain project area. Sources of
revenue are development fees. The City does not present a Budget to Actual schedule for this fund.
State Gas Tax Fund - is used to account for fees used for street maintenance, right-of-way acquisition
and street construction. Source of revenue is gas tax money collected by the State of Califomia.
Art in Public Places Fund - is used to account for fees used for public facilities improvements, most
recently the Veterans' Memorial. Source of revenue is development fees.
State and Federal Assistance Fund - is used to account for Federal and State grants used for the
construction of streets and related improvements and helps fund law enforcement. Sources of funds are
federal and state grants.
Local Transportation Transit Fund - is used to account for fees spent on local transportation
operations, maintenance and related programs. Sources of revenue include Ventura County 8C funding,
the Federal Transportation Administration grant funding and bus fares.
Prop 1B Local Streets and Roads Fund - is used to account for funds received from the State of
California Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 for specified
purposes, such as public transit and passenger rail improvements and local street and road
improvements.
Solid Waste Fund - is used to account for fees used on programs that promote resource conservation,
recycling, composting, and proper disposal of hazardous household waste. Sources of revenue are
AB939 fees from rubbish operators, compost bin sales, the California Beverage Container grant, and the
Used Oil Recycling grant.
-86-
616
City of Moorpark
Non-Major Governmental Funds (continued)
June 30, 2016
CAPITAL PROJECTS FUNDS
Capital Projects Fund - is used to account for financial resources used for major capital projects of the
general government operations. Sources of revenue are the Ventura Community College District tax
increment pass through fees and interest.
City Hall Building Fund - is used to account for the funds used to build the new Civic Center Complex.
Original source of revenue was transferred from the Endowment Fund; current revenue source is interest
earnings.
Equipment Replacement Fund - is used to account for the funds used to replace city equipment and
vehicles. Sources of revenue are interest earnings and transfers from the General Fund.
-87-
617
City of Moorpark
Non-Major Governmental Funds
Combining Balance Sheet
June 30, 2016
Special Revenue
City
Library Traffic Affordable
Services Safety Housing
ASSETS
Cash and investments $ 764,237 $ 137,499 $ 4,603,852
Receivables:
Accounts 6,171 39,111 11,710
Interest - - -
Notes and loans - - 116,207
Due from other funds - - -
Property held for resale - - 577,348
Total assets $ 770,408 $ 176,610 $ 5,309,117
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 33,350 $ 7,231 $ 3,068
Due to other funds - - -
Unearned revenues - 1,810 -
Total liabilities 33,350 9,041 3,068
Deferred inflows of resources:
Unavailable revenues 873 - -
Deferred loans - - 116,207
Total deferred inflows of resources 873 - 116,207
Fund balances:
Restricted - 167,569 5,189,842
Committed 736,185 - -
Assigned - - -
Unassigned
Total fund balances (deficit) 736,185 167,569 5,189,842
Total liabilities, deferred inflows of
resources and fund balances $ 770,408 $ 176,610 $ 5,309,117
-88-
618
Continued
Special Revenue
Tierra Rejada/ Los Angeles Freemount
Spring Road Casey/Gabbert Area of Storm Drain
A.O.C. A.O.C. Contribution A.O.C.
$ - $ 96,852 $ 11,843,963 $ 16,216
- 218 27,529 37
- - 183,179 -
- - 250,249 -
- - 177,006 -
$ - $ 97,070 $ 12,481,926 $ 16,253
$ - $ - $ 189,601 $ -
177,006 - - -
177,006 - 189,601 -
- - 433,428 -
- - 433,428 -
- 97,070 11,858,897 16,253
(177,006) - - -
(177,006) 97,070 11,858,897 16,253
$ - $ 97,070 $ 12,481,926 $ 16,253
-89-
619
City of Moorpark
Non-Major Governmental Funds
Combining Balance Sheet
June 30, 2016
Special Revenue
Art State and
State Gas in Public Federal
Tax Places Assistance
ASSETS
Cash and investments $ 916,355 $ 3,885,721 $ 941,193
Receivables:
Accounts 8,771 8,393 128,100
Interest - - -
Notes and loans - - -
Due from other funds - - -
Property held for resale - - -
Total assets $ 925,126 $ 3,894,114 $ 1,069,293
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 3,195 $ - $ 41,652
Due to other funds - - 95,716
Unearned revenues 6,384 - 592
Total liabilities 9,579 - 137,960
Deferred inflows of resources:
Unavailable revenues - - -
Deferred loans - - -
Total deferred inflows of resources - - -
Fund balances:
Restricted 915,547 3,894,114 931,333
Committed - - -
Assigned - - -
Unassigned - - -
Total fund balances (deficit) 915,547 3,894,114 931,333
Total liabilities, deferred inflows of
resources and fund balances $ 925,126 $ 3,894,114 $ 1,069,293
-90-
620
Continued
Special Revenue Total
Local Prop 1B
Transportation Local Streets Solid Special
Transit and Roads Waste Revenue
$ 87,489 $ 350,377 $ 1,058,124 $ 24,701,878
224,930 1,599 2,373 458,942
- - - 183,179
- - - 366,456
- - - 177,006
- - - 577,348
$ 312,419 $ 351,976 $ 1,060,497 $ 26,464,809
$ 103,266 $ - $ 14,535 $ 395,898
- - 272,722
- 312,773 - 321,559
103,266 312,773 14,535 990,179
124,136 - - 125,009
- - 549,635
124,136 - - 674,644
85,017 39,203 1,045,962 24,240,807
- - 736,185
- - - (177,006)
85,017 39,203 1,045,962 24,799,986
$ 312,419 $ 351,976 $ 1,060,497 $ 26,464,809
-91-
621
City of Moorpark
Non-Major Governmental Funds
Combining Balance Sheet
June 30, 2016
Capital Projects
Capital City Hall Equipment
Projects _ Building Replacement
ASSETS
Cash and investments $ 385,646 $ 3,735,017 $ 2,931,373
Receivables:
Accounts 871 8,412 6,155
Interest - - -
Notes and loans - - -
Due from other funds - - -
Property held for resale - - -
Total assets $ 386,517 $ 3,743,429 $ 2,937,528
LIABILITIES, DEFERRED INFLOWS OF -
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ - $ 6,370
Due to other funds - - -
Unearned revenues - - -
Total liabilities - . - 6,370
Deferred inflows of resources:
Unavailable revenues - - -
Deferred loans - - -
Total deferred inflows of resources - - -
Fund balances:
Restricted - - -
Committed - - -
Assigned 386,517 3,743,429 2,931,158
Unassigned - - -
Total fund balances (deficit) 386,517 3,743,429 2,931,158
Total liabilities, deferred inflows of
resources and fund balances $ 386,517 $ 3,743,429 $ 2,937,528
-92-
622
Continued
Total Total
Capital NonMajor
Projects Governmental
Funds Funds
$ 7.052.036 $ 31.763.914
15,438 474.380
'
183,179
'
366,456
'
177,006
577,348
$ 7.067/474 $ 33,532,283
�
6.370 $ 402.288
'
272,722
-
321,559
6.370 996.540
'
125,009
'
549,635
-
674,644
24,240,807
'
736,185
7,061.104 7,061.104
'
(177,006)
7.061.104 31.861.090
$ 7.067,474 $ 33,532,283
-93-
623
City of Moorpark
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
Year Ended June 30, 2016
Special Revenue
City
Library Traffic Affordable
Services Safety Housing
REVENUES
Taxes $ 895,416 $ - $ -
Fines and forfeitures 17,213 196,710
Use of money and property 7,338 3,684 99,601
Charges for services 20,722 - 493,865
Intergovernmental - -Other revenue 395 - 242,386
Total revenues 941,084 200,394 835,852
EXPENDITURES
Current: _
Public safety - 290,101 -
Public services 915,912 - 534,640
Capital Outlay 386 - -
Total expenditures 916,298 290,101 534,640
Excess(deficiency)of revenues
over(under)expenditures 24,786 (89,707) 301,212
OTHER FINANCING SOURCES(USES)
Transfers in - - 521,774
Total other financing sources (uses) - - 521,774
Net change in fund balances 24,786 (89,707) 822,986
Fund balances (deficit), beginning of year 711,399 257,276 4,366,856
Fund balances (deficit),end of year $ 736,185 $ 167,569 $ 5,189,842
-94- -
624
Continued
Special Revenue
Tierra Rejada/ Los Angeles Freemount
Spring Road Casey/Gabbert Area of Storm Drain
A.O.C. A.O.C. Contribution A.O.C.
$ - $ - $ - $ -
-
2,136 319,662 358
- - 395,460 -
- 2,136 715,122 358
-
- 3,711 •
-
-
- 691,091 -
- - 694,802 -
-
2,136 20,320 358
- 2,136 20,320 358
(177,006) 94,934 11,838,577 15,895
$ (177,006) $ 97,070 $ 11,858,897 $ 16,253
-95- -
625
City of Moorpark
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures,and Changes in Fund Balance
Year Ended June 30, 2016
Special Revenue
Art State and
State in Public Federal
Gas Tax Places Assistance
REVENUES
Taxes $ - $ - $ -
Fines and forfeitures - -Use of money and property 24,006 84,576 23,329
Charges for services - 511,024 399
Intergovernmental 687,013 - 1,183,735
Other revenue 7,596 - 39,010
Total revenues 718,615 595,600 1,246,473
EXPENDITURES
Current:
Public safety - - 110,029
Public services 736,223 - 515,168
Capital Outlay 355,419 245 875,713
Total expenditures 1,091,642 245 1,500,910
Excess (deficiency)of revenues
over(under)expenditures (373,027) 595,355 (254,437)
OTHER FINANCING SOURCES (USES)
Transfers in - - -
Total other financing sources (uses) - - -
Net change in fund balances (373,027) 595,355 (254,437)
Fund balances(deficit), beginning of year 1,288,574 3,298,759 1,185,770
Fund balances (deficit), end of year $ 915,547 $ 3,894,114 $ 931,333
-96-
626
Continued
Special Revenue - Total
Local Prop 1B Special
Transportation Local Streets Solid Revenue
Transit and Roads Waste Funds
$ - $ - $ 274,239 $ 1,169,655
- - - 213,923
1,770 15,765 23,111 605,336
71,818 - 2,725 1,496,013
785,133 778,264 19,634 3,453,779
- - - 289,387
858,721 794,029 319,709 7,228,093
- - - 400,130
795,646 - 284,764 3,786,064
135,877 778,264 - 2,836,995
931,523 778,264 284,764 7,023,189
(72,802) 15,765 34,945 204,904
- - - 521,774
- - - 521,774
(72,802) 15,765 34,945 726,678
157,819 23,438 1,011,017 24,073,308
$ 85,017 $ 39,203 $ 1,045,962 $ , 24,799,986
-97-
627
City of Moorpark
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures,and Changes in Fund Balance
Year Ended June 30, 2016
Capital Projects
Capital City Hall Equipment
Projects Building Replacement
REVENUES
Taxes -
Fines and forfeitures - -Use of money and property 9,475 82,213 59,855
Charges for services - - 7,800
Intergovernmental - - -
Other revenue - - -
Total revenues 9,475 82,213 67,655
EXPENDITURES
Current:
Public safety - - -
Public services - - -
Capital Outlay 1,249 1,014 143,053
Total expenditures 1,249 1,014 143,053
Excess (deficiency)of revenues
over(under) expenditures 8,226 81,199 (75,398)
OTHER FINANCING SOURCES(USES)
Transfers in - - 328,414
Total other financing sources(uses) - - 328,414
Net change in fund balances 8,226 81,199 253,016
Fund balances (deficit), beginning of year 378,291 3,662,230 2,678,142
Fund balances (deficit), end of year $ 386,517 $ 3,743,429 $ 2,931,158
-98-
628
Continued
Total Total
Capital Nonmajor
Projects Governmental
Funds Funds
$ - $ 1,169,655
213,923
151,543 756,879
7,800 1,503,813
3,453,779
289,387
159,343 7,387,436
- 400,130
3,786,064
145,316 2,982,311
145,316 7,168,505
14,027 218,931
328,414 850,188
328,414 850,188
342,441 1,069,119
6,718,663 30,791,971
$ 7,061,104 $ 31,861,090
-99-
629
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual-Library Services Special Revenue Fund
Year Ended June 30,2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes $ 810,000 $ 810,000 $ 895,416 $ 85,416
Fines and forfeitures 25,000 25,000 17,213 (7,787)
Use of money and property 12,000 12,000 7,338 (4,662)
Charges for services 21,000 21,000 20,722 (278)
Other revenue - - 395 395
Total revenues 868,000 868,000 941,084 73,084
EXPENDITURES
Current:
Public services 928,997 941,269 915,912 25,357
Capital Outlay - - 386 (386)
Total expenditures 928,997 941,269 916,298 24,971
Net change in fund balance (60,997) (73,269) 24,786 98,055
Fund balance, beginning of year 711,399 711,399 711,399 -
•
Fund balance, end of year . $ 650,402 $ 638,130 $ 736,185 $ 98,055
•
-100-
630
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual -Traffic Safety Special Revenue Fund
Year Ended June 30, 2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Fines and forfeitures $ 150,000 $ 150,000 $ 196,710 $ 46,710
Use of money and property 8,000 8,000 3,684 (4,316)
Total revenues 158,000 158,000 200,394 42,394
EXPENDITURES
Public safety 302,199 325,352 290,101 35,251
Total expenditures 302,199 325,352 290,101 35;251
Excess(deficiency)of revenues
over(under) expenditures (144,199) (167,352) (89,707) 77,645
Net change in fund balance (144,199) (167,352) (89,707) 77,645
Fund balance, beginning of year 257,276 257,276 257,276 -
Fund balance, end of year $ 113,077 $ 89,924 $ 167,569 $ 77,645
-101-
631
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual-City Affordable Housing Special Revenue Fund
Year Ended June 30, 2016
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property $ 57,000 $ 57,000 $ 99,601 $ 42,601
• Charges for Services 239,000 239,000 493,865 254,865
Other Revenues 46,000 46,000 242,386 196,386
Total revenues 342,000 342,000 835,852 493,852
EXPENDITURES
Public services 338,716 2,236,684 534,640 1,702,044
Total expenditures 338,716 2,236,684 534,640 1,702,044
Excess(deficiency)of revenues
over(under)expenditures 3,284 (1,894,684) 301,212 2,195,896
OTHER FINANCING SOURCES(USES)
Transfers in - - 521,774 521,774
Total other financing sources(uses) - - 521,774 521,774
Net change in fund balance 3,284 (1,894,684) 822,986 2,717,670
Fund balance, beginning of year 4,366,856 4,366,856 4,366,856 -
Fund balance, end of year $ 4,370,140 $ 2,472,172 $ 5,189,842 $ 2,717,670
-102-
632
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual—Tierra Rejada/Spring Road A.O.C. Special Revenue Fund
Year Ended June 30, 2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
EXPENDITURES
Public services 245,000 245,000 - 245,000
Total expenditures 245,000 245,000 - 245,000
Net change in fund balance (245,000) (245,000) - 245,000
Fund balance(deficit), beginning of year (177,006) (177,006) (177,006) -
Fund balance(deficit),end of year $ (422,006) $ (422,006) $ (177,006) $ 245,000
-103-
633
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual—Casey/Gabbert A.O.C. Special Revenue Fund
Year Ended June 30,2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 1,000 $ 1,000 $ 2,136 $ 1,136
Total revenues 1,000 1,000 2,136 1,136
Net change in fund balance 1,000 1,000 2,136 1,136
Fund balance, beginning of year 94,934 94,934 94,934 -
Fund balance, end of year $ 95,934 $ 95,934 $ 97,070 $ 1,136
•
-104-
634
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual—Los Angeles A.O.C. Special Revenue Fund
Year Ended June 30,2016
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of Money and Property
Investment Earnings $ 166,000 $ 166,000 $ 319,662 $ 153,662
Total Use of Money and Property 166,000 166,000 319,662 153,662
Charges for Services
Area of Contribution Fee (22,131) (22,131) 395,460 417,591
Total Charges for Services (22,131) (22,131) 395,460 417,591
Total revenues 143,869 143,869 715,122 571,253
EXPENDITURES
Public services 4,000 11,000 3,711 7,289
Capital outlay 4,742,887 6,060,084 691,091 5,368,993
Total expenditures 4,746,887 6,071,084 694,802 5,376,282
Net change in fund balance (4,603,018) (5,927,215) 20,320 5,947,535
Fund balance, beginning of year 11,838,577 11,838,577 11,838,577 -
Fund balance, end of year $ 7,235,559 $ 5,911,362 $ 11,858,897 $ 5,947,535
-105- -
635
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, 2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 15,000 $ 15,000 $ 24,006 $ 9,006
Intergovernmental 800,000 800,000 687,013 (112,987)
Other revenue_ - 49,020 7,596 (41,424)
Total revenues 815,000 864,020 718,615 (145,405)
EXPENDITURES
Public services 814,795 837,659 736,223 101,436
Capital outlay 632,664 907,263 355,419 551,844
Total expenditures 1,447,459 1,744,922 • 1,091,642 653,280
Net change in fund balance (632,459) (880,902) (373,027) 507,875
Fund balance,beginning of year 1,288,574 1,288,574 1,288,574 -
-
Fund balance,end of year $ 656,115 $ 407,672 $ 915,547 $ 507,875
-106- -
636
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 30,2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 31,000 $ 31,000 $ 84,576 $ 53,576
Charges for services 409,000 409,000 511,024 102,024
Total revenues 440,000 440,000 595,600 155,600
EXPENDITURES
Parks and recreation 145,000 145,000 - 145,000
Capital outlay 5,690 5,000 245 4,755
Total expenditures 150,690 150,000 245 149,755
Net change in fund balance 289,310 290,000 595,355 305,355
Fund balance, beginning of year 3,298,759 3,298,759 3,298,759 -
Fund balance, end of year $ 3,588,069 $ 3,588,759 . $ 3,894,114 $ 305,355
•
-107- -
637
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, 2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 7,500 $ 7,500 $ 23,329 $ 15,829
Charges for services - - 399 399
Intergovernmental 4,664,904 4,717,404 1,183,735 (3,533,669)
Other revenue - - 39,010 39,010
Total revenues 4,672,404 4,724,904 1,246,473 (3,478,431)
EXPENDITURES
Public safety 106,000 124,633 110,029 14,604
Public services 653,874 735,068 515,168 219,900
Capital outlay 3,748,383 4,220,326 875,713 3,344,613
Total expenditures 4,508,257 5,080,027 1,500,910 3,579,117
Net change in fund balance 164,147 (355,123) (254,437) 100,686
Fund balance, beginning of year 1,185,770 1,185,770 1,185,770 -
Fund balance,end of year $ 1,349,917 $ 830,647 $ 931,333 $ 100,686
- -108-
638
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, 2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 2,000 $ 2,000 $ 1,770 $ (230)
Charges for services 70,000 70,000 71,818 1,818
Intergovernmental 1,126,900 1,126,900 785,133 (341,767)
Total revenues 1,198,900 1,198,900 858,721 (340,179)
EXPENDITURES
Public services 1,056,179 1,056,179 795,646 260,533
Capital outlay 462,531 462,531 135,877 326,654
Total expenditures 1,518,710 1,518,710 931,523 587,187
Net change in fund balance (319,810) (319,810) (72,802) 247,008
Fund balance, beginning of year 157,819 157,819 157,819 -
Fund balance(deficit), end of year $ (161,991) $ (161,991) $ 85,017 $ 247,008
•
-
-109-
639
City of Moorpark
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual—Prop 1B Local Streets and Roads Special Revenue Fund
Year Ended June 30, 2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 9,000 $ 9,000 $ 15,765 $ 6,765
Intergovernmental - - 778,264 778,264
Total revenues 9,000 9,000 794,029 785,029
EXPENDITURES
Capital outlay 1,091,959 1,091,959 778,264 313,695
Total expenditures 1,091,959 1,091,959 778,264 313,695
Net change in fund balance (1,082,959) (1,082,959) 15,765 1,098,724
Fund balance, beginning of year 23,438 23,438 23,438 -
Fund balance(deficit), end of year $ (1,059,521) $ (1,059,521) $ 39,203 $ 1,098,724
-110-
640
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual -Solid Waste Special Revenue Fund
Year Ended June 30, 2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes $ 285,000 $ 285,000 $ 274,239 $ (10,761)
Use of money and property 15,000 15,000 23,111 8,111
Charges for services 2,700 2,700 2,725 25
Intergovernmental 20,144 20,144 19,634 (510)
Total revenues 322,844 322,844 319,709 (3,135)
EXPENDITURES
Public services 295,916 312,322 284,764 27,558
Total expenditures 295,916 312,322 284,764 27,558 .
Excess of revenues
over expenditures 26,928 10,522 34,945 24,423
Net change in fund balance 26,928 10,522 34,945 24,423
Fund balance, beginning of year 1,011,017 1,011,017 1,011,017 -
Fund balance, end of year $1,037,945 $1,021,539 $1,045,962 $ 24,423
-111-
641
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual—Capital Projects Capital Projects Fund
Year Ended June 30, 2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 2,000 $ 2,000 $ 9,475 $ 7,475
Total revenues 2,000 2,000 9,475 7,475
EXPENDITURES
Capital outlay - 175,000 1,249 173,751
Total expenditures - _ 175,000 1,249 173,751
Net change in fund balance 2,000 (173,000) 8,226 181,226
Fund balance,beginning of year 378,291 378,291 378,291 -
Fund balance,end of year $ 380,291 $ 205,291 $ 386,517 $ 181,226
-112-
642
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, 2016
{ Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 54,000 $ 54,000 $ 82,213 $ 28,213
Total revenues 54,000 54,000 82,213 28,213
EXPENDITURES
Capital outlay 3,407,866 3,389,716 1,014 3,388,702
Total expenditures 3,407,866 3,389,716 1,014 3,388,702
Net change in fund balance (3,353,866) (3,335,716) 81,199 3,416,915
Fund balance, beginning of year 3,662,230 3,662,230 3,662,230 -
Fund balance, end of year $ 308,364 $ 326,514 $ 3,743,429 $ 3,416,915
-113-
643
City of Moorpark
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual-Equipment Replacement Capital Projects Fund
Year Ended June 30,2016
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Use of money and property $ 17,000 $ 17,000 $ 59,855 $ 42,855
Charges for services - - 7,800 7,800
Total revenues 17,000 17,000 67,655 50,655
EXPENDITURES
Capital outlay 64,600 168,499 143,053 25,446
Total expenditures 64,600 168,499 143,053 25,446
Excess(deficiency)of revenues
over(under)expenditures (47,600) (151,499) (75,398) 76,101
OTHER FINANCING SOURCES(USES)
Transfers in - 328,414 328,414 -
Total other financing sources(uses) - 328,414 328,414 -
Net change in fund balance (47,600) 176,915 253,016 76,101
Fund balance,beginning of year 2,678,142 2,678,142 2,678,142 -
Fund balance,end of year $ 2,630,542 $2,855,057 $ 2,931,158 $ 76,101
-114-
644
City of Moorpark
Statement of Changes in Fiduciary Asset and Liabilities-Agency Funds
Year Ended June 30, 2016
Balance Balance
June 30, 2015 Additions Deletions June 30, 2016
General Trust
Assets
Cash and investments $ 4,273,254 $ 3,890,692 $ (3,584,946) $ 4,579,000
• Cash and investments with fiscal agent 5,641,752 2,569,120 (3,403,139) 4,807,733
Accounts receivable 27,378 - (27,266) 112
Total assets $ 9,942,384 $ 6,459,812 $ (7,015,351) $ 9,386,845
Liabilities
Accounts payable $ 67,038 $ 875,875 $ (847,862) $ 95,051
General deposits 4,206,629 1,321,999 (1,044,567) 4,484,061
Due to bondholders 5,668,717 2,601,851 (3,462,835) 4,807,733
Total liabilities $ 9,942,384 $ 4,799,725 $ (5,355,264) $ 9,386,845
-115-
645
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STATISTICAL SECTION
646
This page intentionally left blank.
647
City of Moorpark
Overview of Statistical Section
Year Ended June 30, 2016
Statistical Section
This part of the City of Moorpark comprehensive annual financial report presents detailed
information regarding five categories: financial trends, revenue capacity, demographic and
economic information, and operating information. These schedules are presented as a context
for understanding the City's overall financial health.
Statistical Section Categories
Financial Trends Data
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time. •
Revenue Capacity Data
These schedules contain information to help the reader assess the City's most significant local
revenue source, the property tax.
Debt Capacity Data
•
These schedules contain information to help the reader assess the City's current levels of
outstanding debt and its ability to issue additional debt in the future.
Demographic and Economic Information
These schedules contain demographic and economic indicators to help the reader understand
the environment within which the City's financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services it provides and the activities it
performs.
•
648
City of Moorpark
Net Position by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
2007 2008 2009 2010 2011
Governmental activities:
Net investment in capital assets $125,900,770 $130,071,108 $130,581,499 $141,095,551 $145,841,042
Restricted 100,649,409 101,613,368 94,878,693 91,504,803 72,654,599
Unrestricted 6,458,224 3,641,173 14,213,503 15,828,208 13,402,969
Total governmental activities net position $233,008,403 $235,325,649 $239,673,695 $248,428,562 $231,898,610
The City of Moorpark does not have any business-type activities.
•
Source: City of Moorpark CAFR.
-116-
649
City of Moorpark
Net Position by Component
Last Ten Fiscal Years(continued)
(Accrual basis of accounting)
2012 2013 2014 2015 2016
Governmental activities:
Net investment in capital assets $139,795,930 $262,271,564 $259,798,991 $260,051,061 $259,824,449
Restricted 87,274,980 82,125,331 85,872,675 89,500,647 94,421,242
Unrestricted 7,909,301 10,042,168 15,655,932 22,642,705 23,579,878
Total governmental activities net position $234,980,211 $354,439,063 $361,327,598 $372,194,413 $377,825,569
-117-
650
City of Moorpark
Changes in Net Position
Last Ten Fiscal Years
(Accrual basis of accounting)
2007 2008 2009 2010 2011
Expenditures:
General government $ 1,639,628 $ 1,949,206 $ 2,041,596 $ 1,603,279 $ 3,201,184
Public safety 6,317,283 6,882,072 7,035,384 7,016,015 7,070,049
Public services 21,231,766 20,580,204 18,170,325 13,589,878 31,775,462
Parks and recreation 4,293,823 4,551,045 4,470,524 4,934,002 4,658,717
Interest on long-term debt 1,332,541 1,773,841 1,616,843 1,504,502 1,492,604
Total governmental activities expenses 21,867,463 35,736,368 33,334,672 28,647,676 48,198,016
Program revenues:
Charges for services:
General government 191,674 283,576 232,926 258,431 293,008
Public safety 598,500 633,131 538,636 477,305 492,847
Public services 6,612,769 5,743,200 3,172,708 2,769,641 2,473,770
Parks and recreation 604,904 756,885 644,979 643,593 697,787
Total charges for services 8,007,847 7,416,792 4,589,249 4,148,970 3,957,412
Operating contributions and grants 4,489,945 7,113,883 6,172,315 4,128,842 5,999,168
Capital contributions and grants 38,337,638 5,481,972 3,326,778 1,970,931 1,703,076
Total governmental activities
program revenues 50,835,430 20,012,647 14,088,342 10,248,743 11,659,656
Net program revenues(expenses) 28,967,967 (15,723,721) (19,246,330) (18,398,933) (36,538,360)
General revenues and other changes in net position:
Taxes:
Property tax 3,334,491 4,505,980 7,802,643 7,449,063 7,287,282
Property tax,Redevelopment Agency 6,347,692 6,887,079 7,054,432 6,864,777 6,755,960
Franchise tax 1,126,951 1,150,180 1,171,556 1,171,825 1,207,778
Sales tax 2,192,327 2,306,281 2,329,522 2,382,010 2,577,105
Sales tax in lieu 704,562 779,263 849,227 588,635 940,791
Motor vehicle in lieu 2,860,207 3,038,440 125,307 109,136 170,592
Investment income 6,556,186 2,491,856 2,875,649 853,074 856,413
Contributed Capital - - - - -
Other 58,841 139,728 386,040 283,372 212,487
Gain on sale of property 276,797 - - - -
County settlement - - 1,000,000 - -
Extraordinary item-Gain on Dissolution - - - - -
Total governmental activities 23,458,054 21,298,807 23,594,376 19,701,892 20,008,408
Changes in net position-
governmental activities $52,426,021 $ 5,575,086 $ 4,348,046 $ 1,302,959 $(16,529,952)
Source: City of Moorpark CAFR.
- -118-
651
City of Moorpark
Changes in Net Position
Last Ten Fiscal Years (continued)
(Accrual basis of accounting)
2012 2013 2014 2015 2016
Expenditures:
General government $ 2,217,953 $ 4,149,965 $ 2,169,069 $ 1,212,685 $ 795,772
Public safety 6,158,455 6,550,936 6,882,753 7,024,242 7,614,298
Public services 11,124,523 9,948,865 11,779,873 11,558,575 12,162,933
Parks and recreation 5,704,208 5,755,528 6,026,182 5,614,080 7,117,157
Interest on long-term debt 354,412 - - - -
Total governmental activities expenses 25,559,551 26,405,294 26,85.7,877 25,409,582 27,690,160
Program revenues:
Charges for services:
General government 407,883 587,915 1,474,249 1,463,859 685,537
Public safety 445,642 809,257 2,657,332. 3,325,404 1,970,207
Public services 1,988,453 4,154,598 7,815,032 10,471,498 5,026,698
Parks and recreation 858,333 973,761 1,913,045 3,119,649 2,378,698
Total charges for services 3,700,311 6,525,531 1.3,859,658 18,380,410 10,061,140
Operating contributions and grants 3,702,582 3,533,608 4,364,461 4,049,606 3,943,429
Capital contributions and grants 2,106,706 1,879,634 2,010,143 4,636,843 2,014,302
Total governmental activities
program revenues 9,509,599 11,938,773 20,234,262 27,066,859 16,018,871
Net program revenues(expenses) (16,049,952) (14,466,521) (6,623,615) 1,657,277 (11,671,289)
General revenues and other changes in net position:
Taxes:
Property tax 6,943,275 6,776,729 6,841,765 7,638,300 7,923,937
Property tax,Redevelopment Agency 3,389,064 - - - -
Franchise tax 1,231,741 1,222,956 1,222,759 1,284,268 1,276,932
Sales tax 2,622,419 2,730,871 2,695,884 2,749,320 3,316,402
Sales tax in lieu 857,217 875,160 1,089,362 896,527 730,083
Motor vehicle in lieu 18,590 19,262 15,942 15,399 -
Investment income 1,206,622 142,222 1,153,683 1,116,545 2,447,983
Contributed Capital 663,818 - - - -
Other 245,235 299,730 492,755 685,569 1,607,108
Gain on sale of property - - - - -
County settlement - - - - -
Extraordinary item-Gain on Dissolution 356,845 - - - -
Total governmental activities 17,534,826 12,066,930 13,512,150 14,385,928 17,302,445
Changes in net position-
governmental activities $ 1,484,874 $ (2,399,591) $ 6,888,535 $16,043,205 $ 5,631,156
•
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652
City of Moorpark
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2007 200.8 2009 2010 2011
General fund:
Reserved $ - $ 95,397 $ 373,209 $ 337,286 $ -
Unreserved 24,405,620 3,625,348 2,832,620 2,662,713 -
Nonspendable - - - - 220,976
Restricted - - - - -
Committed - - - - -
Assigned - - - - -
Unassigned - - - -_ 2,779,024
Total general fund $ 24,405,620 $ 3,720,745 $ 3,205,829 $ 2,999,999 $ 3,000,000
All other governmental funds:
Reserved $ 41,864,116 $ 35,103,620 $ 33,719,016 $ 38,208,807 $ -
Unreserved,reported in:
Special revenue funds 41,486,631 42,761,089 37,278,628 32,207,690 -
Capital projects funds 16,807,370 39,098,065 35,699,829 33,735,939 -
Debt Service funds 83,243 (1,025,927) 261,336 294,202 -
Non-major funds 8,693,969 13,384,413 25,043,397 25,335,288 -
Fund Balances:
Nonspendable - - - - 14,862,594
Restricted - - - - 66,565,551
Committed - - - - 795,208
Assigned - - - - 28,849,138
Unassigned - - - - (2,124,660)
Total all other governmental funds $108,935,329 $ 129,321,260 $132,002,206 $129,781,926 $108,947,831
Source: City of Moorpark CAFR.
•
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653
City of Moorpark
Fund Balances of Governmental Funds
Last Ten Fiscal Years (continued)
(Modified accrual basis of accounting)
2012 2013 2014 2015 2016
General fund:
Reserved $ - $ - $ - $ - $ -
Unreserved - - - - -
Nonspendable 1,275,022 635,176 365,899 660,077 154,863
Restricted - - - - -
Committed - - - - -
Assigned - - - - -
Unassigned 2,999,000 3,000,000 3,000,000 2,999,941 2,865,439
Total general fund $ 4,274,022 $ 3,635,176 $ 3,365,899 $ 3,660,018 $ 3,020,302
All other governmental funds:
Reserved $ - $ - $ - $ - $ -
Unreserved,reported in:
Special revenue funds - - - - -
Capital projects funds - - - - -
Debt Service funds - - - - -
Non-major funds - - - - -
Fund Balances:
Nonspendable 3,055,064 10,478,901 10,253,789 10,363,316 -
Restricted 55,945,095 44,067,428 49,389,385 54,572,775 66,039,589
Committed 783,281 742,546 698,395 711,399 736,185
Assigned 30,892,276 33,084,456 36,190,577 42,221,565 48,533,700
Unassigned (2,047,164) (2,026,212) (1,825,187) (1,604,570) (1,503,658)
Total all other governmental funds $ 88,628,552 $ 86,347,119 $ 94,706,959 $ 106,264,485 $ 113,805,816
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654
City of Moorpark
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2007 2008 2009 2010 2011
Revenues:
Taxes $13,706,024 $15,392,269 $ 19,716,636 $18,730,771 $ 19,042,900
Licenses and permits 65,630 72,951 645,010 598,370 587,186
Fines and forfeitures 343,579 358,665 484,930 436,377 441,543
Uses of money and property 7,085,104 5,684,111 3,114,881 1,547,229 1,537,255
Charges for services 338,929 677,277 3,813,159 3,284,275 2,579,593
Intergovernmental 6,163,985 7,549,040 3,948,059 2,629,132 4,786,235
Maintenance assessments 1,922,471 4,205,700 3,491,975 1,950,431 2,112,992
Franchise fees 292,003 301,514 - - -
Building and safety fees 716,552 530,761 - - -
Planning and public work fees 1,649,002 1,938,143 - - -
Development fees 6,403,851 4,501,837 - - -
Contributions from prop owners 34,066,993 - - - -
Other 2,030,211 433,378 398,539 587,832 833,082
Total revenues 74,784,334 41,645,646 35,613,189 29,764,417 31,920,786
Expenditures:
Current:
General government 1,471,354 1,835,801 1,926,283 1,497,916 2,289,299
Public safety 6,083,917 6,637,757 6,814,425 6,769,484 6,839,355
Public services 9,608,754 12,505,613 11,259,297 12,343,896 12,876,132
Parks and recreation 4,039,888 4,291,867 4,182,091 4,453,400 4,074,490
Capital outlay 19,477,866 14,682,017 8,100,604 5,548,179 24,506,524
Debt service: •
Principal 440,000 455,000 475,000 495,000 1,874,064
Interest 1,400,985 1,631,932 1,594,062 1,482,799 1,471,516
Bond issuance costs 505,588 - - - -
Total expenditures 43,028,352 42,039,987 34,351,762 32,590,674 _ 53,931,380
Excess of revenues over
expenditures 31,755,982 (394,341) 1,261,427 (2,826,257) (22,010,594)
Other financing sources(uses):
Gain from sale of property 276,797 - - - -
Bond Proceeds 11,695,000 - - - -
Discount on Bonds (325,401) - - - -
County settlements - - 1,000,000 - -
Transfers in 9,457,260 27,626,755 17,062,650 9,378,101 3,820,738
Transfers out (9,457,260) (27,626,755) (17,062,650) (9,378,101) (2,644,238)
Total other financing
sources(uses) 11,646,396 - 1,000,000 - 1,176,500
Extraordinary Item - - - -
Net change in fund balances $43,402,378 $ (394,341) $ 2,261,427 $ (2,826,257) $ (20,834,094)
Debt service as a percentage of
noncapital expenditures 8.7% 8.3% 8.6% 7.9% 12.8%
Source: City of Moorpark CAFR.
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655
City of Moorpark
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years(continued)
(Modified accrual basis of accounting)
2012 2013 2014 2015 2016
Revenues:
Taxes $ 16,147,175 $ 12,662,488 $ 12,931,981 $13,688,319 $ 14,417,009
Licenses and permits 561,530 498,102 1,279,619 1,249,964 1,109,136
Fines and forfeitures 446,426 420,555 425,844 384,288 471,684
Uses of money and property 1,381,235 482,129 1,533,697 1,512,399 2,968,575
Charges for services 3,559,454 5,170,238 10,785,334 15,951,226 8,121,521
Intergovernmental 1,627,462 2,503,734 3,257,823 5,246,632 3,584,007
Maintenance assessments 2,114,957 1,893,699 2,159,121 2,487,047 2,737,711
Franchise fees - - - - -
Building and safety fees - - - - -
Planning and public work fees - - - - -
Development fees - - - - -
Contributions from prop owners - - - - -
Other 1,345,246 167,784 438,612 445,197 1,443,805
Total revenues 27,183,485 23,798,729 32,812,031 40,965,072 34,853,448
Expenditures
Current: _
General government 890,396 2,125,004 1,746,028 2,495,775 1,423,174
Public safety 6,467,065 6,306,906 6,643,550 6,789,765 6,999,561
Public services 8,321,090 7,391,632 9,126,851 10,468,227 9,254,464
Parks and recreation 5,038,957 5,086,773 5,354,601 5,732,314 6,089,350
Capital outlay 4,679,053 5,144,756 1,580,438 3,892,870 4,163,202
Debt service:
Principal 590,122 - - - -
Interest 688,825 - - 4,476 22,082
Bond issuance costs - - - - -
Total expenditures 26,675,508 26,055,071 24,451,468 29,383,427 27,951,833
Excess of revenues over
expenditures 507,977 (2,256,342) 8,360,563 11,581,645 6,901,615
Other financing sources(uses):
Gain from sale of property - - - - -
Bond Proceeds - - - - -
Discount on Bonds - - - - -
County settlements - - - - -
Transfers in 4,739,189 3,262,665 4,718,044 7,365,629 6,115,233
Transfers out (4,739,189) (3,262,665) (4,718,0441 (7,365,629) (6,115,233)
Total other financing
sources(uses) - - - - -
Extraordinary Item - (19,553,234) - - -
Net change in fund balances $ 507,977 $(21,809,576) $ 8,360,563 $11,581,645 $ 6,901,615
Debt service as a percentage of
noncapital expenditures 6.2% 0.0% 0.0% 0.0% 0.0%
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657
City of Moorpark
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
City Redevelopment Agency
Fiscal Year Taxable Taxable Total
Ended Less: Assessed Less: Assessed Direct Tax
June 30, Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value Rate
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 0.037%
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 0.033%
2009 4,700,305,496 174,181,146 46,351,377 4,920,838,019 828,244,210 102,730,045 4,309,164 935,283,419 0.035%
2010 4,619,910,655 180,988,669 46,474,508 4,847,373,832 825,093,781 113,302,525 4,333,240 942,729,546 0.038%
2011 4,659,133,835 153,090,627 46,689,455 4,858,913,917 813,947,565 110,905,079 4,436,801 929,289,445 0.040%
2012 4,662,536,870 118,452,976 46,220,250 4,827,210,096 829,750,375 76,258,253 4,422,902 910,431,530 0.031%
2013 4,596,277,650 115,888,876 45,786,243 4,757,952,769 . 867,853,781 70,454,127 4,491,843 942,799,751 1.068%
2014 4,718,569,672 119,712,860 45,054,167 4,883,336,699 878,368,970 70,500,448 4,423,367 953,292,785 1.068%
2015 5,042,223,024 123,500,500 45,844,355 5,119,879,169 909,850,372 74,847,964 7,970,727 976,727,609 0.095%
2016 5,333,705,999 122,090,764 73,812,980 5,381,983,783 1,040,390,804 73,089,277 34,190,142 1,079,289,939 0.094%
Source: Ventura County Assessor's Office
NOTE:
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1%based upon the assessed value of the
property being taxed. Each year,the assessed value of property may be increased by an"inflation factor'(limited to a maximum increase of 2%). With few exceptions,
property is only re-assessed at the time that it is sold to a new owner. At that point,the new assessed value is reassessed at the purchase price of the property sold.The
assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the
limitations described above.
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658
City of Moorpark
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per$100 of assessed value)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
1 Basic Levy 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Conejo Valley Unified 0.02490 0.02420 0.02500 0.02640 0.02850 0.03070 0.03240 0.03270 0.03290 0.03180
School District-
Metropolitan Water District 0.00470 0.00450 0.00430 0.00430 0.00370 0.00370 0.00350 0.00350 0.00350 0.00350
Moorpark Unified 0.03740 0.03310 0.03510 0.03760 0.03980 0.05750 0.04490 0.03950 0.05550 0.06920
School Distrid
Ventura Community 0.01270 0.00500 0.01520 0.01390 0.01510 0.01400 0.01910 0.01670 0.01760 0.01300
College District
Total Direct&
2 1.07970 1.06680 1.07960 1.08220 1.08710 1.10590 1.09990 1.09240 1.10950 1.11750
Overlapping Tax Rates
3 City's Share of 1%Levy
0.07447 0.07447 0.09094 0.09077 0.90770 0.09077 0.09078 0.09078 0.09078 0.09078
per Prop 13
General Obligation Debt Rate - - - - - - - - - -
4 Redevelopment Rate 1.00470 1.00450 1.00430 1.00430 1.00370 1.00370 - - - -
5 Total Direct Rate 0.19826 0.19963 0.21254 0.21589 0.21304 0.21047 0.21806 0.09508 0.09498 0.09447
Notes
1 In 1978,California voters passed Proposition 13 which sets the property tax rate at a 1.00%fixed amount. This 1.00%is shared by all taxing agencies for which the
subject property resides within. In addition to the 1.00%fixed amount,property owners are charged taxes as a percentage of assessed property values for the
payment of any voter approved bonds.
2 Overlapping rates are those of local and county govemments that apply to property owners within the City.Not all overlapping rates apply to all city property owners.
3 City's share of 1%levy is based on the City's share of the general fund tax rate area with the larges net taxable value within the city. ERAF general fund tax shifts
may not be included in tax ratio figures.
4 Redevelopment rates is based on the largest RDA tax rate area and only includes rate(s)from indebtedness adopted prior to 1989 per California State statute. RDA
direct and overlapping rates are applied only to the incremental property values. The approval of Abx1 26 eliminated redevelopment from the State of California for
the fiscal year 2012/13 and years thereafter.
5 Total Direct Rates is the weighted average of all individual direct rates applied to by the government preparing the statistical section information and excludes
revenues derived from aircraft Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas.
Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposed of this report,residual revenue is assumed
to be distributed to the City in the same proportions as general fund revenue.
Source: HdL,Coren&Cone
Ventura County Assessor
•
•
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659
City of Moorpark
Principal Property Tax Payers
Current Year and Ten Years Ago
2016 2006
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayers Value* Value Value Value
NF Moorpark Multifamily Ass. $ 86,125,900 1.60% $ - -
Waterstone Properties Moorpark LLC 71,730,217 1.33% 63,280,359 1.45%
Autosafe Airbag 12 California - - 65,835,840 1.51 %
DBRE Moorpark LLC - - 65,660,200 1.50%
Pardee Homes - - 52,467,131 1.20%
Moorpark Center LLC 46,150,364 0.86% - -
Tesoro Village Properties LLC - - 36,007,301 0.82%
Village at Moorpark LLC 31,253,762 0.58% - -
Kavlico Corporation - - 30,660,400 0.70%
ROIC California 27,250,000 0.51 % - -
Ensign Bickford Aerospace 27,140,193 0.50% - -
Moorpark Carlsberg Holdings - - 26,000,000 0.59
Mission Bell Plaza West LLC 25,452,734 0.47% - -
G&S Investments LLC 23,713,475 0.44% - -
Tuscany Square Partners LLC 23,399,038 0.43% - - -
William Lyon Homes Inc. - - 22,383,101 0.51 %
Thomas M and Lillykutty - - 22,188,200 0.51 %
Calabasas BCD 20,952,613 0.39% - -
G-S Partnership - - 20,145,814 0.46%
$ 383,168,296 7.12% $ 404,628,346 9.26%
* 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 2015-2016 property data.
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660
City of Moorpark
Secured Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Collections
Fiscal Taxes Levied Fiscal Year of Levy from Total Collections
Year Ended for the Percent Previous Percent
June 30, Fiscal Year Amount of Levy Years Amount of Levy
2007 $ 3,010,493 $ 2,432,164 80.8% $124,057 $ 2,556,221 84.9%
2008 4,072,510 3,376,883 82.9% 145,134 3,522,017 86.5%
2009 3,763,078 3,393,933 90.2% 208,491 3,602,423 95.7%
2010 3,682,559 2,789,672 75.8% 262,057 3,051,730 82.9%
2011 3,663,098 3,388,402 92.5% 184,044 3,572,446 97.5%
2012 3,638,780 3,394,794 93.3% 162,584 3,557,378 97.8%
2013 3,724,968 3,533,421 94.9% 158,049 3,691,470 99.1 %
2014 3,817,587 3,545,339 92.9% 125,651 3,670,990 96.2%
2015 4,186,012 3,965,562 94.7% 127,695 4,093,257 97.8%
2016 4,253,351 4,046,844 95.1 % 105,932 4,152,776 97.6%
Source: Ventura County Auditor Controller's Office Levy Letter
Note: The amounts presented include City property taxes only. It does not include redevelopment tax increment.
Note: In FY 2007/08$785,653 in adjustments(including the Library)were added to the Levy Letter.
Subsequent years= Realized Revenue Report, Prior secured
•
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661
City of Moorpark
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Fiscal Year General Tax Total Total Percentage Debt
Ended Obligation Allocation Governmental Primary of Personal Per
1
June 30, Bonds Bonds Activities Government Income 2 Capita 2
2007 $ - $30,135,000 $ 30,135,000 $30,135,000 1% 826
2008 - 29,680,000 29,680,000 29,680,000 1% 803
2009 - 29,185,000 29,185,000 29,185,000 1% 787
2010 - 28,710,000 28,710,000 28,710,000 1% 764
2011 - 28,155,000 28,155,000 28,155,000 1% 811
2012 - - - - - -
2013 - - - - - -
2014 - - - - - -
2015 - - - - - -
2016 - - - - - -
Notes: Details regarding the City's outstanding debt can be found in the notes to the
financial statements.
1 The Moorpark Redevelopment Agency issued$9,860,000 of new tax allocation bonds in 1999,
$11,625,000 in 2001, and$11,695,000 in 2006.
Tax Allocation Bonds are the debt of the Successor Agency and not a part of the City.
Please read Note 14 of the financial statements.
2 These ratios are calculated using personal income and population for the prior calendar year.
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662
City of Moorpark
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Outstanding General Bonded Debt
Fiscal Year General Tax Percent of
Ended Obligation Allocation Assessed Per
June 30, Bonds Bonds' Total Value2 Capita
2007 $ - $ 30,135,000 $ 30,135,000 0.6% 826
2008 - 29,680,000 29,680,000 0.5% 803
2009 - 29,185,000 29,185,000 0.5% 787
2010 - 28,710,000 28,710,000 0.5% 764
2011 - 28,155,000 28,155,000 . 0.5% 811
2012 - - - - -
2013 - - - - -
2014 - - - - -
2015 - - - - -
2016 - - - - -
General bonded debt is debt payable with governmental fund resources and general
obligation bonds recorded in enterprise funds (of which,the City has none).
'Tax Allocation Bonds are the debt of the Successor Agency and not a part of the City.
Please read Note 14 of the financial statements.
2Assessed value has been used because the actual value of taxable property is not
readily available in the State of California.
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663
City of Moorpark
Direct and Overlapping Debt
City Assessed Valuation 2015-16 $ 5,381,983,783
Redevelopment Agency Incremental Valuation 1,079,289,939
Adjusted Assessed Valuation $ 4,302,693,844
Estimated
Share of
Percentage Debt as of Overlapping
Applicable 6/30/2016 Debt
Direct and Overlapping Tax and Assessment Debt:
Metropolitan Water District 0.221% $ 110,420,000 $ 244,028
Ventura Community College District 4.533% 297,490,041 13,485,224
Conejo Valley Unified School District 0.015% 59,894,307 8,984
Moorpark Unified School District 93.412% 57,416,787 53,634,169
City of Moorpark 100.000% - -
City of Moorpark Community Facilities District No.97-1 100.000% 4,625,000 4,625,000
City of Moorpark Community Facilities District No.2004-1 100.000% 11,490,000 11,490,000
City of Moorpark 1915 Act Bonds 100.000% 845,000 845,000 ,
Total Direct and Overlapping Tax&Assessment Debt $ 542,181,135 $ 84,332,405
Overlapping General Fund Obligation Debt:
Ventura County General Fund Obligations 4.532% $ 371,995,000 $ 16,858,813
Ventura County Superintendent of Schools COPs 4.532% 10,425,000 472,461
Moorpark Unified School District COPs 93.412% 5,710,000 5,333,825
Total Overlapping General Fund Obligation Debt $ 388,130,000 $ 22,665,100
Overlapping Tax Increment Debt(Successor Agency): 100.000% $ 24,155,000 $ 24,155,000
Total Direct Debt $ -
Combined Total Debt* $ 954,466,135 $ 131,152,505
•
Total Direct and Overlapping Debt $ 131,152,505
Notes: •
*Excludes tax and revenue anticipation notes,revenue,mortgage revenue and tax allocation bonds and non-bonded capital lease obligations,
of which the City has none.
The direct and overlapping bonded debt above is not the City's obligation.
Source: California Municipal Statistics,Inc. The overlapping district's assessed valuation located within the City is divided by the total assessed
valuation of the overlapping district. That percentage is multiplied by the total debt outstanding for the overlapping district resulting in the City's share
of debt.
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City of Moorpark
Legal Debt Margin Information
Last Ten Fiscal Years
2007 2008 2009 2010 2011
Assessed valuation $4,157,360,033 $4,558,597,806 $4,700,305,496 $4,619,910,655 $4,659,133,835
Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,039,340,008 1,139,649,452 1,175,076,374 1,154,977,664 1,164,783,459
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 155,901,001 170,947,418 176,261,456 173,246,650 174,717,519
Total net debt applicable to limit:
General Obligation Bonds
Legal debt margin $ 155,901,001 $ 170,947,418 $ 176,261,456 $ 173,246,650 $ 174,717,519
Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0%
Source: City of Moorpark,Finance Department
Ventura County Tax Assessor's Office
Note: The Government Code 2227 of the State of California provides for a legal debt limit of 15% of gross assessed
valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value.
Effective with the 81-82 fiscal year, each parcel is now assessed at 100%of market value (as of the most recent change
in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation date for each
fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt
margin was enacted by the State of California for local governments located within the state.
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665
City of Moorpark
Legal Debt Margin Information
Last Ten Fiscal Years (continued)
2012 2013 2014 2015 2016
Assessed valuation $4,662,536,870 $4,596,277,650 $4,718,569,672 $5,042,223,024 $5,333,705,999
Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,165,634,218 1,149,069,413 1,179,642,418 1,260,555,756 1,333,426,500
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 174,845,133 172,360,412 176,946,363 189,083,363 200,013,975
Total net debt applicable to limit:
General Obligation Bonds
Legal debt margin $ 174,845,133 $ 172,360,412 $ 176,946,363 $ 189,083,363 $ 200,013,975
•
Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0%
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666
City of Moorpark
Pledged-Revenue Coverage
Last Ten Fiscal Years
Fiscal Year Tax Allocation Bonds
Ended Tax Debt Service
June 30, Increment Principal Interest Coverage
2007 $ 6,306,385 $ 440,000 $ 1,085,040 4.14
2008 6,858,882 455,000 909,906 5.03
2009 7,010,760 475,000 1,397,922 3.74
2010 6,842,837 495,000 1,376,088 3.66
2011 6,716,136 555,000 1,350,874 3.52
2012 n/a
2013 - - - n/a
2014 - - - n/a
2015 - - - n/a
2016 - - - n/a
Note
The Moorpark Redevelopment Agency issued$9,860,000 of tax allocation bonds in 1999,
$11,625,000 in 2001, and$11,695,000 in 2006.
Tax Allocation Bonds are the debt of the Successor Agency and not a part of the City.
Please read Note 14 of the financial statements.
Details regarding the Successor Agency outstanding debt can be
found in the notes to the financial statements. Operating expenses do not include interest
or depreciation expenses.
-133-
667
City of Moorpark
Demographic and Economic Statistics
Last Ten Calendar Years
Median
Calendar Household Household Unemployment
Year Population Income(000's) Income Rate
2007 36,480 $ 969,311 $ 87,153 4.7%
2008 36,971 1,075,236 95,393 5.7%
2009 37,086 1,069,535 94,593 10.3 %
2010 37,576 1,086,966 94,881 10.6 %
2011 34,710 1,032,167 97,537 10.0 %
2012 34,826 960,667 90,478 8.7 %
2013 34,904 1,065,253 100,104 6.4%
2014 35,172 1,098,171 102,411 6.2 %
2015 35,727 1,115,499 102,411 5.2 %
2016 36,715 1,154,720 103,159 4.8 %
Sources: California State Department of Finance
-134-
668
City of Moorpark
Principal Employers
Current and Ten Calendar Years Ago
2016 2006
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
Pennymac 1,142 6.4% - 0.0%
Moorpark Unified School District 793 4.4% 871 5.1 %
Moorpark College 672 3.8% 315 1.8%
Pentair Water Pool&Spa 256 1.4% 527 3.1 %
Benchmark Electronics Manufacturing Solutions 275 1.5% - 0.0%
Muranaka Farm,Inc. 250 1.4% - 0.0%
Target Stores/T-1547 142 0.8% - 0.0%
Ensign-Bickford Aerospace&Defense Company 121 0.7% - 0.0%
Test Equity LLC 121 0.7% - 0.0%
Picnic Time,Inc. 120 0.7% - 0.0%
Kavlico - - 1,200 7.0%
Waterpik Technology(Teledyne) - - 451 2.6%
First Data - - 442 2.6%
Aquaria - _ - 350 2.0%
Special Devices Inc. - - 290 1.7%
SMTEK International - - 220 1.3%
Aldik - - 200 1.2%
Axius/Auto Shade - - 150 0.9%
Boething Tree Farm - - 145 0.8%
American Board Assembly - - 115 0.7%
-135- _
669
City of Moorpark
Full-Time and Part-Time City Employees by Function
Last Ten Fiscal Years
Function 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General government 30 26 26 26 27 28 27 27 26 25
Public safety(crossing guards) 7 7 6 5 5 3 3 3 3 2
Public services 26 22 22 20 16 18 19 19 22 19
Parks and recreation 49 54 56 55 54 51 58 75 70 57
Total 112 109 110 106 102 100 107 124 121 103
Public safety 1 42 42 38 38 40 39 40 40 40 40
1 Police and fire services were provided by the County.
Fire=18 and police=22
Source:City of Moorpark, Finance Department
-136- -
670
City of Moorpark
Operating Indicators by Function
Last Ten Fiscal Years
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Police:(A)
Arrests 1,890 1,732 1,412 2,207 1,266 1,158 1,120 1,148 938 966
Parking citations issued 4,160 2,860 3,254 4,969 4,887 5,704 5,129 2,736 3,117 4,582
Fire:(B)
Number of"prime"emergency calls 1,351 1,362 1,100 1,945 1,707 2,174 1,851 1,835 1,996 2,026
Business Inspections* 123 130 143 115 196 196 132 500 694 727
Public works:(C)
Street resurfacing(miles) 30.0 3.8 - 5.0 2.0 - 4.5 - - -
Parks and recreation:(D)
Number of recreation classes 479 378 265 419 325 308 300 265 303 295
Number of facility rentals 180 210 186 230 277 118 226 103 248 287
Prime calls and business inspections are for County of Ventura,Fire department station#42
* In November 2001,all business occupancies less than 10,000 sq.feet became eligible for self inspection program.
•Source:City of Moorpark
(A)Provided by Moorpark Police Department.
(B)Ventura County Fire Dept.
(C)Moorpark Public Works Dept.-every six years,the City plans to resurface its streets(total street miles=220).
(D)Arroyo Vista Recreation Dept.
-137- -
671
City of Moorpark
Capital Asset Statistics by Function
Last Ten Fiscal Years
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Fire:
Fire stations 2 2 2 2 2 2 2 2 2 2
Public works:
Streets(miles) 75 78 79 79 79 79 79 79 79 79
Streetlights 2,497 2,510 2,518 2,518 2,620 2,620 2,620 2,620 2,620 2,620
Traffic signals 17 20 20 20 21 21 21 21 21 21
Parks and recreation:
Parks 16 16 17 18 18 18 18 18 19 19
Community centers 2 2 2 2 2 2 2 2 2 2
10f the streetlights,2,612 are owned by Edison and 8 are owned by the City.
Source:City of Moorpark
-138- -
672
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673
Attachment 2
-R- Af ROGERS. ANDERSON, MALODY& SCOTT, LLP
M. 'vS• - •
735 E.Carnegie Dr. Suite 100
San Bernardino.CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net To the Honorable
Mayor and City Council
City of Moorpark
Moorpark, California
- INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
- BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
- = IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
- - - We have audited, in accordance with auditing standards generally accepted in
the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards issued by the Comptroller General
of the United States, the financial statements of the governmental activities, each
major fund, and the aggregate remaining fund information of City of Moorpark
(the City) as of and for the year ended June 30, 2016, and the related notes to
the financial statements, which collectively comprise the City's basic financial
statements, and have issued our report thereon dated February 20, 2017.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered
the City's internal control over financial reporting (internal control) to determine
the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City's internal control.
Accordingly, we do not express an opinion on the effectiveness of the City's
internal control.
A deficiency in internal control exists when the design or operation of a control
does not allow management or employees in the normal course of performing
•
their assigned functions, to prevent, or detect and correct misstatements on a
timely basis. A material weakness is a deficiency, or a combination of
deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or
•= detected and corrected on a timely basis. A significant deficiency is a deficiency,
or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over financial reporting was for the limited
purpose described in the first paragraph of this section and was not designed to
- identify all deficiencies in internal control over financial reporting that might be
material weaknesses or significant deficiencies. Given these limitations, during
our audit we did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
STABILITY. ACCURACY. TRUST. 6 7 4
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
KR9 er6, ndersort,Malod &Suitt LLP
San Bernardino, California
February 20, 2017
675
a Attachment 3
RA ROGERS, ANDERSON, MALODY&SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
M S .
RECEIVE®
735 E. Carnegie Dr.Suite 100DEC 1 2 2016
San Bernardino,CA 92408 a
909 889 0871 T FINANCE bEPTO
909 889 5361 F To the Honorable CityCouncil
FIN
AN
City of Moorpark, Caliornia
PARTNERS
Brenda L.Odle,CPA, MST INDEPENDENT ACCOUNTANT'S REPORT ON AGREED-UPON
Terry P.Shea,CPA PROCEDURES APPLIED TO APPROPRIATIONS LIMIT
Kirk A..Franks,CPA WORKSHEETS
Scott W.Manno,CPA.CGMA
Leena Shanbhag,CPA.MST.CGMA
Bradferd A.Welebir,CPA.MBA,CGMA
Jay H. Zercher,CPA(Partner Emeritus) We have performed the procedures enumerated below to the
Phillip H.Waller.CPA(Partner Emeritus) accompanying Appropriations Limit worksheet of the City of Moorpark,
California (City), for the year ended June 30, 2016. These procedures,
MANAGERS/STAFF which were agreed to by the City and the League of California Cities (as
Jenny Liu,CPA,MST presented in the publication entitled"Agreed-upon Procedures Applied to
Seong-Hyea Lee,CPA.MBA the Appropriations Limitation Prescribed byArticle X1118 of the California
Charles De Simoni,CPA
Nathan Statham,CPA,MBA Constitution), were performed solely to assist the City in meeting the
Gardenya Duran,CPA requirements of Section 1.5 of Article XIIIB of the California Constitution.
Brianna Schultz,CPA The City's management is responsible for the Appropriations Limit
Daniel Hernandez,CPA.MBA worksheet. This agreed-uponprocedures engagement was conducted in
Lisa Dongxue Guo,CPA.MSA accordance with
attestation tandards estblished by the American
Institute of Certified Public Accountants. The sufficiency of the
procedures is solely the responsibility of those parties specified in this
. report. Consequently, we make no representation regarding the
sufficiency of the procedures described below either for the purpose for
which this report has been requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained the completed worksheets and compared the limit and
annual adjustment factors included in those worksheets to the limit
and annual adjustment factors that were adopted by resolution of the
City Council. We also compared the population and inflation options
included in the aforementioned documents to those that were
selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
•
MEMBERS 2. For the accompanying Institute of Appropriations Limit worksheet, we added last
Certified Public Accountants year's limit to total adjustments and agreed the resulting amount to
PCPS The AICPA Alliance this year's limit.
for CPA Firms
Governmental Audit Finding: No exceptions were noted as a result of our procedures.
Quality Center
California Society of 3. We agreed the current year information presented in the
Certified Public Accountants accompanying Appropriations Limit worksheet to the other documents
referenced in#1 above.
Finding: No exceptions were noted as a result of our procedures.
676
STABILITY. ACCURACY. TRUST.
Honorable City Council Page 2
City of Moorpark, California
4. We agreed the prior year appropriations limit presented in the accompanying Appropriations
Limit worksheet to the prior year appropriations limit adopted by the City Council during the
prior year.
Finding: No exceptions were noted as a result of our procedures.
We were not engaged to, and did not, perform an examination, the objective of which would be
the expression of an opinion on the accompanying Appropriations Limit worksheet.
Accordingly, we do not express such an opinion. Had we performed additional procedures,
other matters might have come to our attention that would have been reported to you. No
procedures have been performed with respect to the determination of the appropriation limit for
the base year, as defined by the League publication entitled Article XIIIB of the California
Constitution.
This report is intended solely for the use of the City Council and management of the City and is
not intended to be and should not be used by anyone other than these specified parties.
However, this report is a matter of public record and its distribution is not limited.
Kosersirindersort,Maloa8g,Scott LLP
San Bernardino, California
December 6, 2016
677
CITY OF MOORPARK
APPROPRIATIONS LIMIT COMPUTATION
2015 - 2016
2015 - 2016
Per Capita Personal Income
City Population 3.82%
Population Change
City Population Growth 1.62%
CPI Change Converted to a Ratio 1.0382
Population Change Converted to a Ratio 1.0162
Calculation of Growth Factor 1.0550
2014-2015 Limit $ 31,561,052
2015-2016 Appropriations Limit $ 33,297,505
678
Attachment 4
RApp ROGERS, ANDERSON, MALODY& SCOTT, LLP
735 E.Carnegie Dr.Suite 100
San Bernardino.CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
February 20,2017
To the Honorable City Council
- City of Moorpark
We have audited the financial statements of City of Moorpark(the City)as of and
for the year ended June 30, 2016, and have issued our report thereon dated
; rs February 20, 2017. Professional standards require that we advise you of the
following matters relating to our audit. •
Our Responsibility in Relation to the Financial Statement Audit
,:,-.s,, t_ As communicated in our engagement letter dated May 25, 2016, our
responsibility, as described by professional standards, is to form and express an
opinion(s) about whether the financial statements that have been prepared by
management with your oversight are presented fairly, in all material respects, in
accordance with accounting principles generally accepted in the United States of
America. Our audit of the financial statements does not relieve you or
management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and
perform our audit to obtain reasonable, rather than absolute, assurance about
whether the financial statements are free of material misstatement. An audit of
financial statements includes consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control over financial reporting. Accordingly,
as part of our audit, we considered the internal control of the City solely for the
purpose of determining our audit procedures and not to provide any assurance
concerning such internal control.
We are also responsible for communicating significant matters related to the
audit that are, in our professional judgment, relevant to your responsibilities in
overseeing the financial reporting process. However, we are not required to
design procedures for the purpose of identifying other matters to communicate to
you.
- Planned Scope and Timing of the Audit
- We conducted our audit consistent with the planned scope and timing we
- - previously communicated to you.
679
STABILITY. ACCURACY. TRUST.
Honorable City Council February 20, 2017
City of Moorpark Page 2
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied
with all relevant ethical requirements regarding independence.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by the City is included in Note 1 to the financial statements. There
have been no initial selection of accounting policies and no changes in significant accounting policies or
their application during fiscal year 2016. No matters have come to our attention that would require us,
under professional standards,to inform you about(1)the methods used to account for significant unusual
transactions and (2) the effect of significant accounting policies in controversial or emerging areas for
which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's current judgments. Those judgments are normally based on 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 markedly from management's current
judgments.
The most sensitive accounting estimates affecting the financial statements were:
Management's estimate of the fair value of investments is based on information provided by financial
institutions. We evaluated the key factors and assumptions used to develop the fair value of investments
and determined that it reasonable in relation to the basic financial statements taken as a whole and in
relation to the applicable opinion units.
Management's estimate of the asset for other post-employment benefits is based on actuarial reports
provided by independent actuaries. We evaluated the key factors and assumptions used to develop the
estimate and determined that it is reasonable in relation to the basic financial statements taken as a
whole and in relation to the applicable opinion units.
Management's estimate of the net pension liability and related actuarial deferred inflows and outflows are
based on actuarial reports provided by independent actuaries. We evaluated the key factors and
assumptions used to develop the estimate and determined that it is reasonable in relation to the basic
financial statements taken as a whole and in relation to the applicable opinion units.
680
Honorable City Council February 20, 2017
City of Moorpark Page 3
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because
of their significance to financial statement users. The most sensitive disclosures affecting the City's
financial statements relate to:
The disclosure of fair value of investments in Note 2 to the financial statements represents amounts
susceptible to market fluctuations.
The disclosure of net pension liability and related actuarial deferred inflows and outflows in Note 7 to the
financial statements is based on actuarial assumptions. Actual future liabilities and actuarial deferred
inflows and outflows may vary from disclosed estimates.
The disclosure of the other post-employment benefits (OPEB) in Note 8 to the basic financial statements
identifies the annual OPEB cost and the funded status of the actuarial accrued liability. The information
disclosed is based on actuarial assumptions which could differ from actual costs.
The financial statement disclosures are neutral, consistent, and clear.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the
audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely
misstatements identified during the audit, other than those that we believe are trivial, and communicate
them to the appropriate level of management. Further, professional standards require us to also
communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of
transactions, account balances or disclosures, and the financial statements as a whole and each
applicable opinion unit. Management has corrected all such misstatements. In addition, none of the
misstatements detected as a result of audit procedures and corrected by management were material,
either individually or in the aggregate, to each opinion unit's financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing
matter, which could be significant to the City's financial statements or the auditor's report. No such
disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the letter
dated February 20, 2017.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters. Management informed us that, and to our knowledge, there were no consultations with other
accountants regarding auditing and accounting matters.
681
Honorable City Council February 20, 2017
City of MoorparPage 4
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of
matters, including the application of accounting principles and auditing ntandanda, operating and
regulatory conditions affecting the entity, and operational plans and strategies that may affectthe risks of
material misstatement. None of the matters discussed resulted in a condition to our retention as the City's
auditors.
Other Matters
We applied certain limited procedures to the Management's Discussion and Analysis, the Budgetary
Comparison Schedules of the General Fund and Major Special Revenues Funds, the OPEB Schedule of
Funding Progress, the Schedule of the City's Proportionate Share of the Plans' Net Pension Liability and
Related Ratios as of the Measurement Date, and the Schedule of Plans' Contributions which are required
supplementary information (RSI) that supplements the basic financial statements. Our procedures
consisted of inquiries of management regarding the methods of preparing the information and comparing
the information for consistency with management's responses to our inquirieo, the basic financial
stabemenhy, and other knowledge we obtained during our audit of the basic financial statements. We did
not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual non-major fund financial statements and the
budgetary comparison nnhedu\wo, which accompany the financial statements but are not RSI. With
respect to this supplementary informaUon, we made certain inquiries of management and evaluated the
form, conbant, and methods of preparing the information to determine that the information complies with
accounting principles generally accepted in the United States of America, the method of preparing it has
not changed from the prior period, and the information is appropriate and complete in relation to our audit
of the financial statements. We compared and reconciled the supplementary information to the underlying
accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on introductory and statistical aeuhons, which accompany the financial
statements but are not RSI. We did not audit or perform other procedures on this other information and
we do not express an opinion or provide any assurance on it.
Restriction on Use
This report is intended solely for the information and use of the Honorable City Council and management
of the City and is not intended to be and should not be used by anyone other than these specified parties.
Very truly yours,
ers5innJerSC)rt1M Cl-tlg S_t4xU P
682
Attachment 5
CITY OF MOORPARK, CALIFORNIA
HOUSING SUCCESSOR FUND
FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS REPORT
JUNE 30, 2016
RA ROGERS, ANDERSON, MALODY & SCOTT, LLP
M ^ CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948
683
City of Moorpark
Housing Successor Fund
Table of Contents
Year Ended June 30, 2016
PAGE
INDEPENDENT AUDITOR'S REPORT 1
FINANCIAL STATEMENTS
Fund Financial Statements
Balance Sheet-Governmental Fund 3
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Fund 4
Notes to the Financial Statements 5
684
RA. ROGERS, ANDERSON, MALODY& SCOTT, LLP
M S
735 E.Carnegie Dr. Suite 100
San Bernardino,CA 92408
909 889 0871 T •
909 889 5361 F To the City Council
ramscpa.net City of Moorpark, California
INDEPENDENT AUDITOR'S REPORT
Report on the Financial Statements
We have audited the accompanying financial statements of the Low-Mod Income
" Housing Asset Fund of the City of Moorpark (Housing Successor Fund),
California, as of and for the year ended June 30, 2016, and the related notes to
the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these
7. financial statements in accordance with accounting principles generally accepted
in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor's Responsibility
' Our responsibility is to express an opinion on these financial statements based
on our audit. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable
to financial audits contained in Government Auditing Standards, issued by the
Comptroller,General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
•
An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements. The procedures selected
depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant
to the entity's preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
- 1 -
STABILITY. ACCURACY. TRUST. 685
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the Housing Successor Fund of the City of Moorpark, California, as of
June 30, 2016, and the changes in financial position thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Emphasis of Matters
Housing Successor Fund Financial Statements
As discussed in Note 1, the financial statements present only the Housing Successor Fund and do not
purport to, and do not present fairly, the financial position of the City of Moorpark, California, as of
June 30, 2016, and the changes in its financial position for the year then ended in accordance with
accounting principles generally accepted in the United States of America. Our opinion is not modified with
respect to this matter.
Other reporting required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 20,
2017, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City's internal control over financial
reporting and compliance.
goiersinndersort,Mo.tocig Scott,LLP
San Bernardino, California
February 20, 2017
-2-
686
City of Moorpark
Housing Successor Fund
Balance Sheet— Governmental Fund
June 30, 2016
Low-Mod Income
Housing Asse
Fund
ASSETS
Cash and investments s 308.627
Receivables:
Accounts 477
Interest 251,671
Notes and loans 1.788.968
Property held for resale 7.518.873
Total assets 9.789.618
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE
Liabilities:
Accounts payable and accrued liabilities 411
Unearned revenue ' 10,000
Total liabilities 10,411
Deferred inflows of resources:
Deferred loans 2.041.639
Fund balance:
Restricted 7.717.566
Total fund balance 7.717.568
Total liabilities, deferred inflows of
resources and fund balance 8.768.616
•The accompanying notes are an integral part of these financial statements.
-"-
687
City of Moorpark
Housing Successor Fund
Statement of Revenues, Expenditures and Changes in Fund Balance—
Governmental Fund
Year Ended June 30, 2016
Low-Mod Income
Housing Asset
Fund
REVENUES
Use of money and property $ 4,590
Charges for services 19,800
Other revenue 246
Total revenues 24,636
EXPENDITURES
General government 85
Public services 17,892
Interest 22,082
Total expenditures 40,059
Excess (deficiency)of revenues
over(under)expenditures (15,423)
OTHER FINANCING SOURCES
Transfers in 89,309
Total other financing sources 89,309
Net change in fund balance 73,886
Fund balance, beginning of year 7,643,680
Fund balance, end of year $ 7,717,566
The accompanying notes are an integral part of these financial statements.
-4-
688
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2016
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Moorpark (City) conform to accounting principles generally
accepted in the United States of America as applicable to governments. The Governmental
Accounting Standards Board (GASB) is the accepted standard setting body for governmental
accounting and financial reporting principles. The following is a summary of the significant
accounting policies of the City of Moorpark as they pertain to the Low-Mod Income Housing
Asset Fund (Housing Successor Fund). Only the Housing Successor Fund information is
included herein and these financial statements, therefore, do not purport to represent the
financial position or results of operations of the City of Moorpark, California.
A) Accounting and Reporting Policies
The City has conformed to the pronouncements of the 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.
B) Basis of Accounting
These fund financial statements are reported using the modified-accrual basis of accounting.
Under the modified-accrual basis of accounting, revenues are recognized when susceptible
to accrual (i.e. when they are both measurable and available). "Measurable" means the
amount of the transaction can be determined, and "available" means collectible within the
current period or soon enough thereafter (within 60 days) to be used to pay liabilities of the
current period. Expenditures are generally recognized in the accounting period in which the
liability is incurred, if measurable.
C) Use of estimates in the preparation of financial statements
The financial statements have been prepared in accordance with generally accepted
accounting principles and include amounts based on estimates and assumptions by
management.Actual results could differ from those amounts.
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•
City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2016
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D) Property Held for Resale/Development
Property held for resale and development in the Housing Successor Fund represents land
and buildings purchased by the former Moorpark Redevelopment Agency and transferred to
the City as housing assets with Dissolution on February 1, 2012. Such property is valued at
the lower of cost or estimated net realizable value. The balance at June 30, 2016 was
$7,518,873.
E) Unearned Revenue
Unearned revenue is recorded for monies collected in advance that have not been earned.
As of June 30,2016, unearned revenue in the Governmental Fund amounted to$10,000.
F) Deferred Outflows and Inflows of Resources
Deferred outflows of resources are transactions that result in the consumption of assets in
one period that are applicable to future periods and are not considered assets as described
by the statement. Deferred outflows of resources are required to be presented separately
after assets on the statement of net position. Deferred inflows of resources are transactions
that result in the acquisition of assets in one period that are applicable to future periods and
are not considered to be liabilities as described by the statement. Deferred inflows of
resources are required to be presented separately after liabilities on the statement of net
position.
The Housing Successor Fund's financial statements contain elements that meet the definition
of deferred inflow of resources. The amount of deferred inflows of resources is reported in the
Balance Sheet as follows: •
Deferred loans $ 2,041,639
2) CASH AND INVESTMENTS
Cash and investments at June 30, 2016, consisted of the following:
Pooled cash and investments $ 208,627
The Housing Successor Fund follows the practice of pooling cash and investments with the City
of Moorpark for all funds except for funds required to be held by outside fiscal agents under the
provisions of bond indentures.
For more information on the City's cash and investments as of June 30, 2016, please see the
City's audited financial statements.
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City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2016
3) NOTES AND LOANS RECEIVABLE
Notes and loans receivable activity for the year ended June 30, 2016, is as follows:
Beginning Ending
Balance Increases Decreases Balance
Notes receivable
Moorpark20,LP $ 1,983,758 $ 44,412 $ - * $ 2,028,170
Loans receivable
Rehabilitation 13,714 - (245) 13,469
Total notes and loans and interest receivable $ 1,997,472 $ 44,412 $ (245) $ 2,041,639
Balance includes accrued interest of$251,671 separately reported in the financial statements.
A) Moorpark 20, LP Promissory Notes
On October 29, 2010, the Agency signed the Disposition and Development Agreement(DDA)
with the Area Housing Authority of the County of Ventura (AHA) and Moorpark 20, Limited
Partnership (M20LP), consisting of AHA and Santa Barbara Housing Assistance Corporation.
The DDA provides for the construction of a 20-unit affordable housing project (Project) on
Agency-owned property located at 396, 406 and 496 Charles Street (Site). During the tax
credit application, the sale price of Site was determined to be$1,176,500 to show more local
funds into the Project. On the same date, the Agency executed a $1,176,500 loan agreement
with M20LP to purchase the Site from the Agency. The loan will accrue interest at the rate of
2.5% per annum and have a term of 55 years. One annual payment will be made to the
Agency by M20LP from residual receipts after the $600,000 has been paid off. This loan is
subordinate in right of payment to First Mortgage Note held by Bank of America, N.A. and is
secured by Deed of Trust and Security Agreement. The principal and accrued interest
outstanding on this note at June 30, 2016 are $1,176,500 and $166,670 respectively for a
total of$1,343,170.
On November 2, 2010 the Agency entered into a $600,000 loan agreement with M20LP to
complete the construction of the Project. As of June 30, 2012, M20LP has drawn down the
entire amount. The term of the loan is 30 years with a fixed interest rate of 2.5%. One
annual payment will be made to the Agency by M20LP equal to 75% of available residual
receipts. This note is subordinate in right of payment to the First Mortgage Loan payable to
Bank of America, N.A. and is secured by Deed of Trust and Security Agreement. The
principal and accrued interest outstanding on this note at June 30, 2016 are $600,000 and
$85,000 respectively for a total of$685,000.
The combined amounts of principal and accrued interest outstanding at June 30, 2016 are
$1,776,500 and $251,670 respectively, for a total of$2,028,170.
B) Rehabilitation Loans
The Housing Successor Fund operates a rehabilitation loan program for the renovation of low
and moderate income housing. The total balance outstanding at June 30, 2016, was
$13,469.
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City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2016
4) PROPERTY HELD FOR RESALE AND DEVELOPMENT
The Housing Successor Fund owns several interests in real property held for resale and
development throughout the City of Moorpark that were acquired by the former Redevelopment
Agency prior to February 1, 2012 and transferred to the Housing Successor Fund as part of the
Dissolution of the former Redevelopment Agency on February 1, 2012. The value of these
properties is shown in the Balance Sheet as follows:
Land held for resale and development $ 7,518,873
5) CLASSIFICATION OF FUND BALANCE
Fund balances in governmental funds are reported in classifications that comprise a hierarchy
based primarily on the extent to which the Housing Successor Fund is bound to honor constraints
on the specific purposes for which amounts in those funds can be spent. The Housing Successor
Fund considers restricted fund balance to have been spent first when an expenditure is incurred
for purposes for which both restricted and unrestricted fund balance is available. Similarly, when
an expenditure is incurred for purposes for which amounts in any of the unrestricted
classifications of fund balance could be used, the Housing Successor Fund considers committed
amounts to be reduced first, followed by assigned amounts and then unassigned amounts. A City
of Moorpark's Council.Ordinance or Resolution is the formal action that would effectively commit
fund balances for a particular purpose.
The following classifications describe the relative strength of the spending constraints placed on
the purposes for which resources can be used:
Nonspendable Fund Balance - Amounts that cannot be spent either because they are in
nonspendable form or are required to be maintained intact.
Restricted Fund Balance -Amounts that are constrained to specific purposes by state or federal
laws, or externally imposed conditions by grantors or creditors.
Committed Fund Balance - Amounts that may be specified by the City Council by resolution to
formally commit part of the Housing Successor Fund's fund balances or future revenues for a
specific purpose(s) or program. To change or repeal any such commitment will require an
additional formal City Council's action utilizing the same type of action that was originally used.
Assigned Fund Balance -Amounts that are constrained by the Council's intent to use specified
financial resources for specific purposes, but are neither restricted nor committed. It is the policy
of the City Council that assignment of fund balances must be approved by the Council prior to the
fiscal year end.
Unassigned Fund Balance - These are either residual positive net resources of fund balance in
excess of what can properly be classified in one of the other four categories, or negative
balances.
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City of Moorpark
Housing Successor Fund
Notes to the Financial Statements
Year Ended June 30, 2016
The Housing Successor Fund's balance at June 30, 2016, is presented below:
Low-Mod Income
Housing Asset
Fund
Restricted for:
Low and moderate income housing 7,717,566
$ 7,717,566
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