HomeMy WebLinkAboutACFR 2004 CITY OF MOORPARK,
CALIFORNIA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2004
Prepared By:
Administrative Services Department
CITY OF MOORPARK,
CALIFORNIA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2004
Prepared By:
Administrative Services Department
INTRODUCTORY SECTION
CITY OF MOORPARK
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30,2004
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Table of Contents
Directory of City Officials iv
Organization Chart v
FINANCIAL SECTION:
Independent Auditors' Report 1
Management's Discussion and Analysis 3
Government-Wide Financial Statements
Statement of Net Assets 14
Statement of Activities 15
Fund Financial Statements
Governmental Funds
Balance Sheet 16
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets 18
Statement of Revenues,Expenditures, and Changes in Fund Balances 19
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities 21
General Fund
Statement of Revenues, Expenditures,and Changes in Fund Balance
-Budget and Actual 22
Street and Traffic Safety Development Special Revenue Fund
Statement of Revenues, Expenditures,and Changes in Fund Balance
-Budget and Actual 23
Community Development Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
-Budget and Actual 24
Area of Contribution Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
-Budget and Actual 25
Endowment Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
-Budget and Actual 26
CITY OF MOORPARK
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30,2004
TABLE OF CONTENTS (Continued)
Agency Fund
Statement of Fiduciary Net Assets 27
Notes to the Financial Statements 28
Supplementary Schedules
Major Fund Budgetary Comparison Schedules 60
Schedule of Revenues,Expenditures, and Changes in Fund Balances
-Budget and Actual
Police Facilities Fee Fund Capital Projects Fund 60
Redevelopment Agency Capital Projects Fund 61
Redevelopment Agency Debt Service Fund 62
Non-Major Governmental Funds
Combining Balance Sheet 65
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances 67
Schedule of Revenues,Expenditures, and Changes in Fund Balances
-Budget and Actual—Special Revenue Funds
Traffic Safety 69
Park Development 70
Affordable Housing 71
Assessment District 72
State and Federal Assistance 73
State Gas Tax 74
Low and Moderate Income Housing 75
Local Transportation Transit 76
Solid Waste 77
Schedule of Revenues,Expenditures, and Changes in Fund Balances
-Budget and Actual—Capital Projects Funds
City Hall Building 78
Equipment Replacement 79
Agency Fund
Statement of Changes in Net Assets 80
ii
CITY OF MOORPARK
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30,2004
TABLE OF CONTENTS (Continued)
STATISTICAL SECTION(Unaudited):
Revenues by Source—All Governmental Fund Types—Last Ten Fiscal Years 81
Expenditures by Function—All Governmental Fund Types—Last Ten Fiscal Years 82
Assessed Value of Taxable Property—Last Ten Fiscal Years 83
Secured Tax Charge and Delinquencies—Most Recent Ten Year History 84
Direct and Overlapping Bonded Debt as of Fiscal Year 2003-2004 85
Computation of Legal Debt Margin and Breakdown of General Property Tax Levy 86
City Population—Last Ten Years 87
Building Permit Valuation—Last Ten Fiscal Years 88
Largest Property Owners—Per Assessed Valuation 2003 89
Miscellaneous Statistics 90
iii
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FINANCIAL SECTION
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Vavrinek, Trine, Day & Co., LLP VALUE THE DIFFERENCE
Certified Public Accountants&Consultants
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Members of City Council
The City of Moorpark,California
We have audited the accompanying financial statements of the governmental activities, each major fund, the
remaining funds and the aggregate remaining fund information of the City of Moorpark, California(the City), as
of and for the year ended June 30, 2004, which collectively comprise the City of Moorpark's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of the City of
Moorpark's management. Our responsibility is to express opinions on these financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the governmental activities, each major fund, and the aggregate remaining fund information of the
City of Moorpark, California, as of June 30, 2004, and the respective changes in fmancial positions, thereof for
the year then ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated December 5, 2004 on
our consideration of the City of Moorpark'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 fmancial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
1
8270 Aspen Street Rancho Cucamonga,CA 91730 Tel:909.466.4410 Fax:909.466.4431 www.vtdcpa.com
FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • SAN JOSE
The management's discussion and analysis on pages 3 through 13, is not a required part of the basic financial
statements, but is supplementary information required by accounting principles generally accepted in the United
States of America. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary information.
However,we did not audit the information and express no opinion on it.
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, capital projects and debt service major
fund budgetary schedules, and combining individual non-major fund statements and schedules, and statistical
section as listed in the table of contents are presented for purpose of additional analysis and are not a required part
of the basic financial statements. The combining, capital projects and debt service major fund budgetary
schedules, individual non-major fund statements and schedules have been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole. The introductory section and the statistical section
have not been subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly,we express no opinion on them.
< Oa �, Lt8
Rancho Cucamonga, California
December 5, 2004
2
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2004
As management of the City of Moorpark, California (the "City"), we offer readers of the City's fmancial
statements this narrative overview and analysis of the financial activities of the City(the"Primary Government")
for the fiscal year ended June 30, 2004. 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 the 2004 fiscal year by $167,310,012 (net
assets). Of this amount, $31,861,714 (unrestricted net assets) may be used to meet the City's ongoing
obligations to citizens and creditors.
• The City's total net assets increased by $5,476,692 during the current fiscal year. The Statement of Net
Assets is presented on page 14.
• As of June 30, 2004, the City's governmental funds (General Fund, Special Revenue Funds, Debt Service
Funds, and Capital Projects Funds) reported combined ending fund balances of$67,560,826 an increase
of$194,013 from the prior year. Of this amount, $63,460,977, or approximately 94% of the total fund
balances are available for spending at the City's discretion(unreserved fund balance).
• At the end of the current fiscal year, unreserved fund balance for the General Fund was $14,756,222, or
170%of total General Fund expenditures and transfers out.
• The City's total debt decreased by $324,419 or 1.6% during the current fiscal year. The decrease is
attributable to the difference between employee compensated absences additions and the fiscal year's
regularly scheduled debt service payments for the 1999 and 2001 Tax Allocation Bonds.
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 comprise three components:
1)Government-wide financial statements
2)Fund financial statements
3)Notes to basic financial statements
Other required supplementary information is included in addition to the basic financial statements.
Government-Wide Financial Statements. The City has presented its financial statements under the reporting
model required by Governmental Accounting Standards Board Statement No. 34 (GASB 34) and its related
Statements, GASB 37, 38 and 41. These financial statements are designed to provide readers with a broad
overview of the City's finances, in a manner similar to a private-sector business.
3
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2004
The government-wide financial statements include the statement of net assets and the statement of activities.
The governmental activities of the City include general government, public safety, public services, parks and
recreation, debt service, and interest on debt. The City does not have any business-type activities.
The statement of net assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases and decreases in net assets may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the most recent
fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods (i.e., uncollected taxes and earned but
unused vacation leave).
The government-wide financial statements include not only the City of Moorpark as the primary government, but
also a legally separate Community Redevelopment Agency and Moorpark Public Financing Authority. Although
legally separate from the City, these component units are blended with the primary government because of their
governance or financial relationships to the City.
The government-wide financial statements can be found on pages 14 and 15 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the City can be divided into two categories: governmental funds and fiduciary
funds.
Governmental Funds. Governmental Funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating the City's near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the City's near-term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures and changes in fund balances,provide a reconciliation
to facilitate this comparison between governmental funds and governmental activities.
4
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2004
The City maintains 19 individual governmental funds. Information is presented separately in the governmental
fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund
balances for the General Fund, Street and Traffic Safety Development, Community Development, Areas of
Contribution, Endowment, Police Facilities Fee, Moorpark Redevelopment Agency (MRA) — Capital Projects,
and Moorpark Redevelopment Agency (MRA) — Debt Service. All of which are considered to be major funds.
Data from the remaining 11 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 appropriated budget for all its funds. A budgetary comparison statement is provided
for all funds with an annually adopted budget to demonstrate compliance with their respective budgets. The
budgetary comparison statements are located in the basic financial statements. The non-major governmental fund
budgetary comparisons are located in the non-major governmental funds section of the report.
Fiduciary Funds. Fiduciary funds, which consist solely of trust and agency funds, are used to account for
resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the
government-wide financial statements because the resources of the fund are not available to support the City's
own programs. As the City's only fiduciary fund, the Agency Fund is custodial in nature and, therefore, the
accounting used does not involve the measurement of the results of operations. The basic fiduciary fund financial
statement can be found on page 27 of this report.
Notes to the Basic Financial Statements. The notes to the basic financial statements provide additional
information that is essential to a full understanding of the data provided in the government-wide and fund
financial statements. The notes to the basic financial statements can be found on pages 28-59 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
This is the second year that the City has presented its financial statements under the new reporting model required
by GASB 34. A comparative analysis of the government-wide data has been included in this report.
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the
case of the City, assets exceeded liabilities by$167,310,012 at the close of the current fiscal year.
The City's investment in capital assets, net of related debt,reflects a positive$93,941,392. As shown on Table 1,
the largest portion of the City's net assets (56%) reflects its investment in capital assets less any related
outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its capital
assets is reported net of related debt, it should be noted that resources needed to repay this debt must be provided
from other sources, since the capital assets themselves cannot be used to liquidate liabilities.
5
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2004
An additional portion of the City's net assets(25%)represents resources that are subject to external restrictions on
how they may be used. The major restrictions on net assets are funding source restrictions. The remaining
balance of total net assets (19%) 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, 2004, the City reported positive balances in all three categories of net
assets,both for the City as a whole,as well as for its separate governmental activities.
Table 1
Net Assets
Governmental Activities
As of June 30,2004 and 2003
2004 2003
Assets:
Current and other assets $ 76,701,898 $ 77,473,209
Capital assets 113,646,392 106,069,804
Total Assets 190,348,290 183,543,013
Liabilities:
Long-term debt outstanding 19,690,826 20,420,245
Other liabilities 3,347,452 4,016,029
Total Liabilities 23,038,278 24,436,274
Net Assets:
Invested in capital assets,
net of related debt 93,941,392 85,969,804
Restricted 41,506,906 39,344,368
Unrestricted 31,861,714 33,792,567
Total Net Assets $ 167,310,012 $ 159,106,739
Note: Total net assets for June 30, 2003 has been restated to recognize notes receivable and record construction
in progress(see note# 15).
6
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2004
The City's net assets increased by$5,476,692 during the current fiscal year.
Table 2
Changes in Net Assets
Governmental Activities
As of June 30,2004 and 2003
2004 2003
Revenues
Program Revenues:
Charges for services $ 6,494,526 $ 3,706,733
Operating contributions and grants 4,077,849 5,440,099
Capital contributions and grants 4,731,311 4,131,439
General Revenues:
Tax increment 4,116,542 3,577,050
Property taxes 2,658,230 2,413,964
Franchise taxes 919,290 1,067,669
Sales taxes 2,176,893 1,664,626
Motor vehicle in lieu tax 1,570,551 2,161,324
Investment income 1,363,344 2,027,190
Other 177,380 21,479
Special item(see Notes#3C and#3E) (900,000)
Total Revenues 27,385,916 26,211,573
Expenses
General government 2,351,860 2,116,644
Public safety 4,902,148 4,142,268
Public services 10,957,272 7,150,513
Parks and recreation 2,600,523 2,276,066
Interest on long-term debt 1,097,421 1,040,854
Total Expenses 21,909,224 16,726,345
Increase in net assets 5,476,692 9,485,228
Net assets-July 1, as restated(see Note# 15) 161,833,320 149,621,511
Total Net assets-June 30 $ 167,310,012 $ 159,106,739
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CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2004
Program Revenues
Capital
contributions Charges for
and grants Services
31% 42%
Operating
contributions
and grants
27%
• Charges for services
• Operating contributions and grants
O Capital contributions and grants
General Revenues
Investment
income Other
Motor vehicle 11% 1%
Tax increment
,n lieu tax 32%
12%
Sales taxes
17%
Franchise Property taxes
taxes 20%
7%
■ Tax increment
• Property taxes
O Franchise taxes
O Sales taxes
• Motor vehicle in lieu tax
■ Investment income
■ Other
8
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2004
FINANCIAL ANALYSIS OF THE CITY'S MAJOR FUNDS
As noted earlier, the City uses fund accounting to demonstrate compliance with finance-related legal
requirements.
Governmental Funds. The focus of the City's governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's financial
requirements. In particular unreserved fund balance may serve as a useful measure of a government's net
resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported total fund balances of
$67,560,826. This is an increase of$194,013 in comparison with the prior year. Approximately $63,460,977 or
94% of the fund balances constitutes unreserved fund balance, which is available to meet the City's current and
future needs. The remainder of fund balance is reserved to indicate that it is not available for new spending
because it has been committed to a variety of restricted purposes.
General Fund
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the unreserved
(designated and undesignated) total fund balance of the General Fund was $14.8 million, which was $1.3 million
or 10%more than the prior year's General Fund total fund balance. 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 170% of
total General Fund expenditures.
Key factors in this growth are as follows:
• Sales tax increased by$512,267(31%),primarily due to the Moorpark Marketplace development
• Property tax increased by$244,266(10%), due to continued strength in local real estate market
• Expenditures ended the year$1.4 million under budget
Intergovernmental revenue was under budget by approximately$472 thousand. Of the $2.2 million budgeted fo •
intergovernmental revenue, $2 million relates to Motor Vehicle License Fees (VLF), which ended the year $476
thousand under budget. VLF is an annual fee on the ownership of a registered vehicle in California, levied in-lieu
of property taxes on vehicles. This shortfall is a direct result of the State borrowing VLF backfill payments from
local governments. The City's share of lost backfill revenue is approximately$586 thousand(latest estimate from
State Controller's Office),which is due to cities and counties in August 2006.
Street and Traffic Safety Fund
The fund balance of the Street and Traffic Safety Fund increased by $822,166 from the prior year, primarily due
to the receipt of development fees for various construction projects.
9
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2004
Community Development Fund
The fund balance of the Community Development Fund increased by$420,340 from the prior year,primarily due
to increased public improvements/construction activities.
Areas of Contribution Fund
The fund balance of the Areas of Contribution Fund decreased by $123,650 from the prior year, primarily due to
Los Angeles Avenue Widening and Spring Road projects expenditures.
Endowment Fund
The fund balance of the Endowment Fund increased by $1,872,765 from the prior year, primarily due to the
receipt of$750 thousand of development fees per the Second Amendment to the Settlement Agreement with a
developer. In addition, $521,103 and $137,072 were transferred in from other funds due to the closing of the
Community Services Fund(2156) and reclassifications to prior year posting errors respectively.
Police Facilities Fund
The fund balance of the Police Facilities Fund decreased by $2,544,393 from the prior year, primarily due to the
construction of the new Police Services Facility.
RDA Capital Projects Fund
The fund balance of the Redevelopment Agency Capital Projects Fund increased slightly by $58,264 from the
previous year.
RDA Debt Service Fund
The fund balance of the Redevelopment Agency Debt Service Fund decreased by $793,311 primarily resulting
from transfers to the RDA Operations Fund of tax increment revenue in excess of debt service requirements.
Non-Major Governmental Funds
The fund balance of all other Non-Major Governmental Funds decreased by $818,159 or 6% from the previous
fiscal year.
General Fund Budgetary Highlights
The City adopts annual appropriated operating budgets for its governmental funds (General Fund, Special
Revenue Funds, Debt Service Funds, and Capital Project Funds) and reports the results of operation on a budget
comparison basis.
10
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2004
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 reappropriate 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, 2004, were more favorable than anticipated.
Revenues were $156,521 over budget and expenditures ended the year$1,403,356 under budget. The two largest
savings came from Public Safety ($544,406) and General Government ($423,958). This resulted in a $1,559,877
overall favorable variance between budget and actual.
CAPITAL ASSET AND LONG-TERM LIABILITIES
Capital Assets. The City's investment in capital assets as of June 30, 2004, amounted to $113,646,392 (net of
accumulated depreciation). This investment, detailed in Table 3, includes land, construction in progress,
buildings and improvements, machinery and equipment, and infrastructure. The total increase in the City's
investment in capital assets for the current fiscal year was 7 percent.
Table 3
Capital Assets(net of depreciation)
Governmental Activities
As of June 30,2004 and 2003
2004 2003
Land $ 32,463,213 $ 31,410,929
Construction in Progress (see note# 15) 7,330,885
Buildings and improvements 5,886,644 6,729,818
Machinery and equipment 925,384 374,822
Infrastructure 67,040,266 67,554,235
Total $ 113,646,392 $ 106,069,804
Some of the City's major capital asset purchases in the current fiscal year were:
• In the General Fund,the Sheriff's Department purchased two motorcycles for$19,000 each.
• The Moorpark Redevelopment Agency (MRA) Low/Moderate Income Housing Fund purchased a
property for$339,491.
• The Park Improvement Fund(Zone 1)purchased three park properties for a combined total of$732,018.
11
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2004
As a result of the implementation of GASB 34, the City has continued to account for infrastructure assets on its
financial statements. The accompanying government-wide financial statements include those infrastructure assets
that were either completed during the current fiscal year or considered construction in progress at current fiscal
year-end.
Additional information on the City's capital assets can be found in Note#5 on page 47 of this report.
Long-term Liabilities. At the end of the current fiscal year, the City's long-term liabilities outstanding is
$20,095,826. This amount was comprised of$19,705,000 of tax allocation bonds which are secured by future tax
revenues, and$390,826 in employee compensated absences payable. This is shown at Table 4.
Table 4
Outstanding Long-Term Liabilities
Governmental Activities
As of June 30,2004 and 2003
2004 2003
Tax allocation bonds (issued by the
Redevelopment Agency) $ 19,705,000 $ 20,100,000
Employee Compensated Absences
Payable 390,826 320,245
Total $ 20,095,826 $ 20,420,245
The City of Moorpark's total liabilities decreased by $324,419, or 1.6% during the current fiscal year. The
decrease is attributable to the difference between long-term liabilities additions and the fiscal year's regularly
scheduled liabilities service payments.
Additional information on the City's long-term liabilities can be found in Note#6 on pages 47 and 48 of the basic
financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Uncertainty about the impact of the State's budget still remains. The City's budget continues to be challenged by
the State's transfer of funds to the schools (ERAF shift). The City of Moorpark Redevelopment Agency's ERAF
shift as calculated by the State Department of Finance for FY 2004-05 is $293,698. This is an increase of
$158,090 or 116.6% in comparison to last year's shift of$135,608. One of the State's traditional ways of solving
its budget crisis is to take local revenues for the State.
12
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2004
Additionally,the City took into consideration the following factors in preparing the budget for fiscal year
2004-05:
• Assessed property values continue to steadily increase.
• New housing construction is expected to remain strong.
• Interest income will show a slight increase due to the modest increase in interest rates.
• Sales tax growth continues to increase as a result of new businesses.
• Increase in PERS retirement cost from 3.581%to 8.581%effective 7/1/04.
• Increase in health insurance rates and Worker's Compensation rates.
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
Administrative Services Department at City Hall, 799 Moorpark Avenue, Moorpark, CA 93021, or at
www.ci.moorpark.ca.us.
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BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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CITY OF MOORPARK
STATEMENT OF NET ASSETS
JUNE 30,2004
Governmental
Activities
ASSETS
Cash and investments $ 65,846,501
Receivables:
Taxes 3,233
Accounts 1,013,984
Interest 381,647
Notes and loans 6,446,080
Other 71,715
Property held for resale 1,545,448
Cash and investments-restricted 1,393,290
Capital assets
Non-depreciable:
Land 32,463,213
Construction in progress 7,330,885
Depreciable,net of accumulated depreciation:
Buildings and improvements 5,886,644
Machinery and equipment 925,384
Infrastructure 67,040,266
Total Assets 190,348,290
LIABILITIES
Accounts payable and accrued liabilities 2,208,300
Retentions payable 81,158
Interest payable 241,783
Deferred revenue 405,886
Deposits 5,325
Noncurrent liabilities:
Due within one year 405,000
Due in more than one year 19,690,826
Total Liabilities 23,038,278
NET ASSETS
Invested in capital assets,net of related debt 93,941,392
Restricted for:
Community development 35,709,456
Recreation services 2,771,865
Public safety 471,184
Debt service 1,393,290
Housing set-aside 1,161,111
Unrestricted 31,861,714
Total Net Assets $ 167,310,012
See accompanying notes to financial statements.
14
CITY OF MOORPARK
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2004
Program Revenues
Operating Capital Net
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Governmental Activities:
General government $ 2,351,860 $ 1,407,130 $ 152,852 $ (791,878)
Public safety 4,902,148 369,795 109,176 (4,423,177)
Public services 10,957,272 4,181,363 3,815,821 $ 2,841,656 (118,432)
Parks and recreation 2,600,523 536,238 1,889,655 (174,630)
Interest on long-term debt 1,097,421 (1,097,421)
Total Governmental Activities $21,909,224 $ 6,494,526 $ 4,077,849 $ 4,731,311 (6,605,538)
General Revenues:
Taxes:
Property tax, levied for general purpose 2,658,230
Property tax, Redevelopment Agency tax increment 4,116,542
Franchise tax 919,290
Sales tax 2,176,893
Motor vehicle in lieu tax 1,570,551
Investment income 1,363,344
Other 177,380
Special Item(see Notes#3C and#3E) (900,000)
Total General Revenues and Special Items 12,082,230
Change in Net Assets 5,476,692
Net Assets at Beginning of Year, as Restated 161,833,320
Net Assets at End of Year $ 167,310,012
See accompanying notes to financial statements.
15
i
FUND FINANCIAL STATEMENTS
CITY OF MOORPARK
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30,2004
Special Revenue
Street and
Traffic Safety Community Areas of
ASSETS General Development Development Contribution
Cash and investments $ 7,722,712 $ 10,075,998 $ 1,154,509 $ 7,706,077
Cash and investments-restricted
Receivables:
Taxes
Accounts 581,269 200
Interest 180,782 122,940
Notes and loans 5,677
Other 71,715
Due from other funds 140,183
Advances to other funds 6,636,603
Property held for resale
Total Assets $ 15,338,941 $ 10,075,998 $ 1,154,709 $ 7,829,017
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued liabilities $ 582,719 $ 1,793 $ 386,310 $ 61,457
Due to other funds
Retention payable 10,260 33,013
Deferred revenue
Deposits,principally from developers
Advances from other funds
Total Liabilities 582,719 12,053 386,310 94,470
FUND BALANCES
Reserved for:
Debt service
Property held for resale
Housing set-aside
Unreserved,reported in:
General fund 14,756,222
Special revenue funds 10,063,945 768,399 7,734,547
Capital projects funds
Debt service fund
Total Fund Balances 14,756,222 10,063,945 768,399 7,734,547
Total Liabilities and
Fund Balances $ 15,338,941 $ 10,075,998 $ 1,154,709 $ 7,829,017
See accompanying notes to financial statements.
16
Debt
Special Revenue Capital Projects Service
Non-Major
Police Redevelopment Redevelopment Governmental
Endowment Facilities Fee Agency Agency Funds Totals
$ 10,701,198 $ 10,277,063 $ 5,545,186 $ 12,663,758 $ 65,846,501
1,393,290 1,393,290
3,233 3,233
975 52,112 379,428 1,013,984
59,417 18,508 381,647
5,677
71,715
746,856 188,834 1,075,873
6,636,603
337,487 1,207,961 1,545,448
$ 11,448,054 $ - $ 10,863,776 $ 7,009,096 $ 14,254,380 $ 77,973,971
$ 20,474 $ 640,298 $ 33,721 $ 154,133 $ 327,395 $ 2,208,300
746,856 329,017 1,075,873
31,173 6,712 81,158
405,886 405,886
5,045 280 5,325
118,946 6,352,970 164,687 6,636,603
20,474 1,387,154 188,885 6,507,103 1,233,977 10,413,145
1,393,290 1,393,290
337,487 1,207,961 1,545,448
1,161,111 1,161,111
14,756,222
11,427,580 9,754,213 39,748,684
(1,387,154) 10,337,404 897,118 9,847,368
(891,297) (891,297)
11,427,580 (1,387,154) 10,674,891 501,993 13,020,403 67,560,826
$ 11,448,054 $ - $ 10,863,776 $ 7,009,096 $ 14,254,380 $ 77,973,971
17
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CITY OF MOORPARK
GOVERNMENTAL FUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30,2004
Fund Balances of Governmental Funds $ 67,560,826
Amounts reported for Governmental Activities in the Statement of Net Assets are
different because:
Capital assets of governmental activities are not financial resources and,therefore,
are not reported in the governmental funds. 113,646,392
Long-term notes and loans receivable are not current financial resources and,
therefore, are not included in the governmental funds. 6,440,403
Interest expenditures are recognized when due, and therefore, interest payable
is not recorded in the governmental funds. (241,783)
Long-term liabilities are not due and payable in the current period and,therefore,
are not reported in the governmental funds. (20,095,826)
Net Assets of Governmental Activities $ 167,310,012
See accompanying notes to financial statements.
18
CITY OF MOORPARK
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES,EXPENDITURES, AND
CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30,2004
Special Revenue
Street and
Traffic Safety Community Areas of
General Development Development Contribution
REVENUES
Taxes $ 5,753,933
Licenses and permits 63,146
Fines and forfeitures 124,113
Use of money and property 299,520 $ 130,044 $ 104,038
Charges for services 1,943,324
Intergovernmental 1,723,404
Maintenance assessments 553,212
Utility franchise fees
Building and safety fees $ 595,138
Planning and public works fees 2,614,959
Development fees 776,465
Other revenue 69,787
Total Revenues 9,977,227 906,509 3,210,097 657,250
EXPENDITURES
Current:
General government 2,161,832
Public safety 3,941,873
Public services 707,539 84,343 2,794,257
Parks and recreation 1,174,088
Capital outlay 780,900
Debt service:
Principal
Interest
Total Expenditures 7,985,332 84,343 2,794,257 780,900
Excess(Deficiency) of Revenues
Over(Under)Expenditures 1,991,895 822,166 415,840 (123,650)
OTHER FINANCING SOURCES (USES)
Transfers in 4,500
Transfers out (691,904)
Total Other Financing
Sources (Uses) (691,904) 4,500
Net Change in Fund Balances 1,299,991 822,166 420,340 (123,650)
Fund Balances, Beginning of Year 13,456,231 9,241,779 348,059 7,858,197
Fund Balances, End of Year $14,756,222 $ 10,063,945 $ 768,399 $7,734,547
See accompanying notes to financial statements.
19
Special Debt
Revenue Capital Projects Service
Non-Major
Police Redevelopment Redevelopment Governmental
Endowment Facilities Fee Agency Agency Funds Total
$ 4,116,542 $ 480 $ 9,870,955
63,146
182,758 306,871
$ 120,830 $ 34,326 $ 298,075 151,940 224,233 1,363,006
58,237 2,001,561
2,574,605 4,298,009
102,690 1,983,726 2,639,628
257,127 257,127
595,138
2,614,959
1,431,857 1,889,655 4,097,977-Y
35,157 4,298 172,264 281,506
1,552,687 137,016 333,232 4,272,780 7,343,085 28,389,883
97,185 2,259,017
940,674 4,882,547
1,124,651 1,587,065 2,103,598 8,401,453
1,207,610 2,381,698
201,026 2,681,409 450,317 4,661,507 8,775,159
395,000 395,000
1,100,996 1,100,996
201,026 2,681,409 1,574,968 3,083,061 9,010,574 28,195,870
1,351,661 (2,544,393) (1,241,736) 1,189,719 (1,667,489) 194,013
521,104 1,300,000 152,542 1,610,571 3,588,717
(2,135,572) (761,241) (3,588,717)
521,104 1,300,000 (1,983,030) 849,330
1,872,765 (2,544,393) 58,264 (793,311) (818,159) 194,013
9,554,815 1,157,239 10,616,627 1,295,304 13,838,562 67,366,813
$11,427,580 $ (1,387,154) $ 10,674,891 $ 501,993 $ 13,020,403 $67,560,826
20
CITY OF MOORPARK
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30,2004
Net Change in Fund Balances-Total Governmental Funds $ 194,013
Amounts reported for governmental activities in the Statement of Activities differs
from the amounts reported in the Statement of Revenues, Expenditures, and Changes
in Fund Balances 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
as depreciation expense or are allocated to the appropriate functional expense when
the cost is below the capitalization threshold. This activity is reconciled as follows:
Cost of assets capitalized less disposals 6,609,173
Depreciation expense (1,322,857)
Long-term notes and loans receivable are reported as expenditures when made and
as revenue when repaid in the governmental funds. However, there is no impact
in the Statement of Activities when notes and loans are made or repaid. This amount
represents the net change in the long-term notes and loans receivable. (331,631)
Principal repayments of long-term debt are reported as expenditures in the
Governmental Funds, however,they reduce long-term liabilities in the Statement
of Net Assets. 395,000
Accrued interest for Tax Allocation Bonds is not recorded in the governmental funds.
This is the net change in accrued interest for the current period. 3,575
Change in Net Assets of Governmental Activities $ 5,476,692
See accompanying notes to financial statements.
21
CITY OF MOORPARK
STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 5,200,000 $ 5,200,000 $ 5,753,933 $ 553,933
Licenses and permits 39,600 39,600 63,146 23,546
Fines and forfeitures 95,000 95,000 124,113 29,113
Use of money and property 455,588 455,588 299,520 (156,068)
Charges for services 1,802,268 1,802,268 1,943,324 141,056
Intergovernmental 2,195,250 2,195,250 1,723,404 (471,846)
Other revenue 21,300 33,000 69,787 36,787
Total Revenues 9,809,006 9,820,706 9,977,227 156,521
EXPENDITURES
Current:
General government 2,275,760 2,595,790 2,161,832 433,958
Public safety 4,486,279 4,486,279 3,941,873 544,406
Public services 838,343 838,343 707,539 130,804
Parks and recreation 1,468,276 1,468,276 1,174,088 294,188
Total Expenditures 9,068,658 9,388,688 7,985,332 1,403,356
Excess of Revenues
Over(Under)Expenditures 740,348 432,018 1,991,895 1,559,877
OTHER FINANCING USES
Transfers out (691,904) (691,904) (691,904)
Net Change in Fund Balance 48,444 (259,886) 1,299,991 1,559,877
Fund Balance,Beginning of Year 13,456,231 13,456,231 13,456,231
Fund Balance, End of Year $13,504,675 $13,196,345 $14,756,222 $ 1,559,877
See accompanying notes to financial statements.
22
CITY OF MOORPARK
STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
STREET AND TRAFFIC SAFETY DEVELOPMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 169,104 $ 169,104 $ 130,044 $ (39,060)
Development fees 1,315,508 1,315,508 776,465 (539,043)
Total Revenues 1,484,612 1,484,612 906,509 (578,103)
EXPENDITURES
Current:
Public services 953,275 1,184,796 84,343 1,100,453
Net Change in Fund Balance 531,337 299,816 822,166 522,350
Fund Balance,Beginning of Year 9,241,779 9,241,779 9,241,779
Fund Balance, End of Year $ 9,773,116 $ 9,541,595 $10,063,945 $ 522,350
See accompanying notes to financial statements.
23
CITY OF MOORPARK
STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Building and safety fees $ 478,694 $ 478,694 $ 595,138 $ 116,444
Planning and public works fees 1,719,497 1,723,997 2,614,959 890,962
Total Revenues 2,198,191 2,202,691 3,210,097 1,007,406
EXPENDITURES
Current:
Public services 2,241,472 2,247,752 2,794,257 (546,505)
Excess (Deficiency)of Revenues
Over(Under)Expenditures (43,281) (45,061) 415,840 460,901
OTHER FINANCING SOURCES
Transfers in 4,500 4,500 4,500
Net Change in Fund Balance (38,781) (40,561) 420,340 460,901
Fund Balance,Beginning of Year 348,059 348,059 348,059
Fund Balance, End of Year $ 309,278 $ 307,498 $ 768,399 $ 460,901
See accompanying notes to financial statements.
24
CITY OF MOORPARK
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
AREAS OF CONTRIBUTION SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 154,648 $ 154,648 $ 104,038 $ (50,610)
Maintenance assessments 1,493,196 1,493,196 553,212 (939,984)
Total Revenues 1,647,844 1,647,844 657,250 (990,594)
EXPENDITURES
Capital outlay 7,994,285 8,184,180 780,900 7,403,280
Net Change in Fund Balance (6,346,441) (6,536,336) (123,650) 6,412,686
Fund Balance,Beginning of Year 7,858,197 7,858,197 7,858,197
Fund Balance,End of Year $1,511,756 $1,321,861 $7,734,547 $ 6,412,686
See accompanying notes to financial statements.
25
CITY OF MOORPARK
STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
ENDOWMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 182,000 $ 182,000 $ 120,830 $ (61,170)
Development fees 360,396 360,396 1,431,857 1,071,461
Total Revenues 542,396 542,396 1,552,687 1,010,291
EXPENDITURES
Current:
General government 1,100,000 1,100,000 1,100,000
Capital outlay 5,766,827 3,851,827 201,026 3,650,801
Total Expenditures 6,866,827 4,951,827 201,026 4,750,801
Excess(Deficiency)of Revenues
Over(Under)Expenditures (6,324,431) (4,409,431) 1,351,661 5,761,092
OTHER FINANCING SOURCES
Transfers in 521,104 521,104
Net Change in Fund Balance (6,324,431) (4,409,431) 1,872,765 6,282,196
Fund Balance,Beginning of Year 9,554,815 9,554,815 9,554,815
Fund Balance,End of Year $ 3,230,384 $ 5,145,384 $11,427,580 $ 6,282,196
See accompanying notes to financial statements.
26
CITY OF MOORPARK
STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUND
JUNE 30,2004
ASSETS
Cash and investments $ 2,120,412
LIABILITIES
Accounts payable $ 406,309
Deposits 1,714,103
Total Liabilities $ 2,120,412
See accompanying notes to financial statements.
27
NOTES TO FINANCIAL STATEMENTS
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CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Moorpark(the 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 fmancial reporting principles.
The following is a summary of the significant policies.
A. Reporting Entity
The reporting entity "City of Moorpark" includes the accounts of the City, the Moorpark Redevelopment
Agency(the RDA), and the Moorpark Public Financing Authority(the Authority).
The City was incorporated in July 1983 as a general law city and operates under a Council/Manager form of
government.
The RDA was formed in 1987 pursuant to the State of California Health and Safety Code, Section 33000
entitled "Community Redevelopment Law". Its purpose is to finance long-term capital improvements
designed to eliminate physical and economic blight in a project area.
The Authority was formed in 1993 as a joint powers authority between the City and the RDA in order to
provide financial assistance to the City and the RDA by issue debt and financing the construction of public
facilities.
The criteria used in determining the scope of the reporting entity are based on the provisions of GASB
Statement No. 14. The City of Moorpark 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. For the year ended 2004, the City adopted GASB Statement No. 39,
determining whether certain organizations are component units, which provides criteria for determining
whether certain organizations should be reported as component units based on their relationship with a
primary government and clarifies reporting requirements for those organizations.
The City has accounted for the RDA and the Authority as "blended"component units. Despite being legally
separate, the RDA and the Authority are so intertwined with the City, it is in substance, part of the City's
operations. Accordingly, the balances and transactions of the RDA are reported as separate funds in the
Special Revenue, Debt Service, and Capital Projects Funds. The Authority is inactive. The following
specific criteria were used in determining that the RDA and the Authority are"blended"component units:
1) The members of the City Council also act as the governing body of the RDA and the Authority.
2) The City, the RDA, and the Authority are financially interdependent. The City makes loans to the RDA
for use on redevelopment projects. Available property tax revenues of the RDA will be used to repay the
loans from the City.
28
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
3) The RDA and the Authority are managed by employees of the City.
The financial statements for the RDA may be obtained at the City's administrative offices. The Authority
does not issue separate financial statements.
B. Participation in Public Entity Joint Powers Authority
The City is a member of the California Joint Powers Insurance Authority (the Authority). The Authority is
composed of 92 California public entities and is organized under a joint powers agreement pursuant to
California Government Code 6500 et seq. The purpose of the Authority is to arrange and administer
programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange
for group-purchased insurance for property and other coverages. The Authority's pool began covering claims
of its members in 1978. Each member government has an elected official as its representative on the Board of
Directors. The Board operates through a nine-member Executive Committee.
The City does not have an equity interest in the Authority; therefore, no amount has been reported in the
Statement of Net Assets. However, the City does have an ongoing financial interest because the City is able
to influence the operations of the Authority so that the Authority uses its resources on behalf of the City.
Also, an ongoing financial responsibility exists because the Authority is dependent on continued funding from
the City. The condensed financial information of the Authority has not been reproduced in this report, but is
available from the Authority.
C. Accounting and Reporting Policies
The City has conformed to the pronouncements of the GASB, which are the primary authoritative statements
of accounting principles generally accepted in the United States of America applicable to state and local
governments. In accordance with GASB Statement No. 20, the City applies all applicable Financial
Accounting Standards Board (FASB) pronouncements, as well as those of its predecessors, issued on or
before November 30, 1989,unless any such pronouncements contradict GASB pronouncements.
D. Description of Funds
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. The following are types
of funds used:
Governmental Fund Types
• General Fund— Used to account for all financial resources except those required to be accounted for in
another fund.
• Special Revenue Funds—Used to account for the proceeds of specific revenue sources that are restricted
by law or administrative action for specified purposes.
29
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
• Debt Service Fund — The debt service fund is used to account for property tax increment revenue and
related interest income. Disbursements from this fund consist mainly of principal and interest on
indebtedness.
• Capital Projects Funds — Used to account for financial resources used for the construction of specific
capital projects.
Fiduciary Fund Type
• Agency Funds — Used to account for assets held by the City as an agent for individuals, private
organizations, other governments and/or other funds.
E. Basis of Accounting and Measurement Focus
Government—Wide Financial Statements
The City's Government-Wide Financial Statements include a Statement of Net Assets and a Statement of
Activities. These statements present summaries of Governmental Activities for the City.
These statements are presented on an "economic resources" measurement focus and the accrual basis of
accounting. Accordingly, all of the City's assets and liabilities, including capital assets and infrastructure as
well as long-term debt, are included in the accompanying Statement of Net Assets. The Statement of
Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in
the period in which they are earned while expenditures are recognized in the period in which the liability is
incurred. The Statement of Activities demonstrates the degree to which the direct expenditures of a given
function are offset by program revenues. Direct expenditures are those that are clearly identifiable with a
specific function. The types of transactions reported as program revenues for the City are reported in three
categories: 1) charges for services, 2) operating contributions and grants, and 3) capital grants and
contributions. Charges for services include revenues from customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function. Operating contributions and
grants include revenues restricted to meeting the requirements of a particular operating function and may
include state shared revenues and grants. Capital contributions and grants include revenues restricted to
meeting the requirements of a particular capital function and may include grants and developer fees. Taxes
and other items not properly included among program revenues are reported instead as general revenues.
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, payables, and receivables. All internal balances in the government-wide financial statements have
been eliminated.
30
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and Statement of Revenues, Expenditures,
and Changes in Fund Balances for all major governmental funds and aggregated non-major funds. An
accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in
these statements to the net assets presented in the Government-Wide Financial Statements. The City has
presented all major funds that met qualifications of GASB Statement No. 34.
All governmental funds are accounted for on a spending or"current financial resources"measurement focus
and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are
included on the Balance Sheets. The Statement of Revenues, Expenditures, and Changes in Fund Balances
present increases (revenues and other financing sources) and decreases (expenditures and other financing
uses) in fund balances. Revenues are recognized in the accounting period in which they become susceptible
to accrual, that is, when they become both measurable and available to finance expenditures of the current
period. "Measurable" means that the amount of the transaction can be determined, and "available" means
collectible within the current period or soon enough thereafter to be used to pay liabilities of the current
period. Accrued revenues include property taxes received within 60 days after year-end taxpayer assessed
taxes such as sales taxes, and earnings on investments. Grant funds earned but not received are recorded as a
receivable, and grant funds received before the revenue recognition criteria have been met are reported as
deferred revenues. Expenditures are recorded when the fund liability is incurred, if measurable, except for
unmatured interest on general long-term debt, which is recognized when due.
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial resources of the
City, except those required to be accounted for in another fund.
The Street and Traffic Safety Development Special Revenue Fund is used to account for fees used for street
maintenance,right-of-way acquisition and street construction.
The Community Development Special Revenue Fund is used to account for fees used in planning, building
and safety, and engineering services relating to community development.
The Areas of Contribution Special Revenue Fund is used to account for fees used for street and related
improvements to specific project areas and fund infrastructure enhancements as a result of additional
development.
The Endowment Special Revenue Fund is used to account for funds received by the City for certain
development projects or other sources directed by the City Council to be held for the purpose of one-time
capital expenditure of community-wide benefit due to the impact of additional development.
The Police Facilities Fee Capital Projects Fund is used to account for the funds used to build the new police
facility.
31
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
The RDA Capital Projects Fund is used to account for the funds used for the RDA's capital improvement
projects.
The RDA Debt Service Fund is used to account for the accumulation of resources for, and the payment of
principal and interest on the RDA's debt and other long-term obligations.
Fiduciary Fund Financial Statements
Fiduciary Fund Financial Statements include a Statement of Net Assets. The fiduciary fund is used to report
assets held in a trustee or agency capacity for others and therefore are not available to support City programs.
Since these assets are being held for the benefit of a third party, these funds are not incorporated into the
government-wide statements.
The City's only fiduciary fund is an agency fund, which uses the accrual basis of accounting to account for
amounts held for individuals, private organizations, other governments, and/or other funds. The agency fund
is custodial in nature (assets equal liabilities) and therefore does not involve measurement of results of
operations.
F. Budgetary Accounting
Annual budgets are adopted on a basis consistent with GAAP for all governmental funds. All annual
appropriations lapse at fiscal year-end. Throughout the year, the City Council made several supplementing
budgetary adjustments to the General Fund, Special Revenue Funds, Capital Projects Funds,and Debt Service
Fund. These adjustments resulted in a net appropriation increase in the amount of$16,763,614. This increase
resulted primarily from rebudgeted projects and amounts carried over from Fiscal Year 2002-2003 as
continuing appropriations.
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is
restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes
exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the
taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a
deficit in the following year. For the fiscal year ended June 30, 2004, based on calculations by City
Management,proceeds of taxes did not exceed related appropriations.
G. Investments
The City has adopted the provisions of Governmental Accounting Standards Board (GASB) Statement
No. 31, Accounting and Financial Reporting for Certain Investments and External Pools, which require
governmental entities to report certain investments at fair value in the balance sheet and recognize the
corresponding change in the fair value of investments in the year in which the change occurred. In
accordance with GASB Statement No. 31, the City has adjusted certain investments to fair value (when
material).
32
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,Continued
Investments are included within the financial statement classifications of"Cash and investments" and "Cash
and investments—restricted"and are stated at fair value, (see Note#2).
H. Property Held for Resale
Property held for resale in the Low and Moderate Income Housing Special Revenue Fund and the Capital
Projects Fund represent land and buildings purchased by the Agency. Such property is valued at the lower of
cost or estimated net realizable value(as determined by a disposition and development agreement between the
Agency and a developer)and has been offset by a reservation of fund balance to indicate that assets constitute
future capital projects and are not available spendable resources.
I. 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
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:
Buildings 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
J. Deferred Revenue
Deferred revenue is recorded monies collected in advance that have not been earned. As of June 30, 2004,
total deferred revenue reported is $405,886.
33
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
K. Long-Term Debt
In the government-wide financial statements, long-term debt and other long-term obligations are reported as
liabilities in the statement of net assets. Bonds payable are reported net of the applicable bond premium or
discount. Bond issuance costs are reported as deferred charges and amortized over the team of the related
debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amounts of debt issuances are reported as
other financing sources. Issuance costs, whether or not withheld from the actual net proceeds received, are
reported as debt service expenditures.
L. Employee Compensated Absences
City employees may receive from 12 to 22 days vacation time each year, depending upon length of service.
An employee may accumulate earned vacation time up to a maximum of 480 hours' worth of accrued
vacation leave. Upon termination, employees are paid the full value of their unused vacation time at their
existing salary. There is no fixed payment schedule for employee compensated absences.
M. Property Taxes
The duties of assessing and collecting property taxes are performed by the Ventura County (the County)
Assessor and Tax Collector, respectively. The City receives an allocation of property taxes collected by the
County with respect to property located within the City limits equal to 7.40 percent of the 1 percent State
levy. The Redevelopment Agency receives incremental property taxes on property within its project area
over the base-assessed valuation at the date the project area was established. Tax levies cover the period from
July 1 to June 30 of each year. All tax liens are attached annually on the first day in January preceding the
fiscal year for which the taxes are levied. Taxes are levied on both real and personal property, as it exists on
that date.
Secured property taxes are levied against real property and are due and payable in two equal installments.
The first installment is due on November 1 and becomes delinquent if not paid by December 10. The second
installment is due on February 1 and becomes delinquent if not paid by April 10. Unsecured personal
property taxes are due on July 1 each year. These taxes become delinquent if not paid by August 31.
N. 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, 2004, in the opinion of the City Attorney, the City had no material claims, which require loss
provisions in the financial statements. Small claims and judgments are recorded as expenditures when paid.
34
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
The City's self-insurance program is administered through the California Joint Powers Authority(the CJPIA),
which is described in Note #11. The CJPIA is a public entity risk pool, which is accounted for under the
provisions of GASB Statement No. 10. Claim losses recorded in the CJPIA include both current claims and
Incurred But Not Reported claims (IBNR). Deposits to the CJPIA are recorded by the City as insurance
expenditures in the General Fund when paid. These deposits are subject to retrospective adjustment.
Favorable claims experience result in a refund of deposits from the CJPIA and such refunds, if any, are
recorded as a reduction of insurance expenditures in the year received. Adverse claims experience result in
the payment of additional deposits and such deposits, if any, are recorded as insurance expenditures when
paid.
O. Deferred Compensation
In October 1997, GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code
Section 457 Deferred Compensation Plans, was issued. This Statement establishes accounting and financial
reporting standards for Internal Revenue Code (IRC) section 457 deferred compensation plans of state and
local governments. 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 the claims of the City's general creditors. The City has
established an eligible deferred compensation plan in accordance with subsection(g) of the IRC Section 457.
Under the provisions of this Statement, it is no longer considered appropriate to report the Section 457 plan in
the City's financial statements.
P. New Pronouncements
GASB Statement No. 39 - In May 2002, the GASB issued Statement No. 39, Determining Whether Certain
Organizations Are Component Units. This statement provides additional guidance to determine whether
certain organizations should be reported as component units based on the nature and the significance of the
relationship with the primary government. This statement does not have a significant impact on the financial
statements of the City.
GASB Statement No. 40 - In March 2003, the GASB issued Statement No. 40,Deposit and Investment Risk
Disclosures, an amendment of GASB No. 3. This statement modifies the Deposit and Investment Risk
Categorization Disclosures and requires additional information on an entity's portfolio. This statement is not
effective until June 30, 2005. The City has not determined its effect on the financial statements.
GASB Statement No. 41 - In May 2003, the GASB issued Statement No. 41, Budgetary Comparison
Schedules - Perspective Differences, an amendment of GASB 34. This statement establishes guidance for
governments with significant budgetary perspective differences to report budgetary comparison schedules
within the GASB 34 reporting model. This statement does not have a significant impact on the financial
statements of the City.
35
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE#1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,Continued
GASB Statement No. 42 - In November 2003, the GASB issued Statement No. 42, Accounting and
Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries. This statement requires
governments to measure, recognize, and disclose the effects of capital asset impairments in their financial
statements when it occurs. This statement also clarifies and establishes accounting requirements for insurance
recoveries, including those associated with capital asset impairment. This statement is not effective until
June 30, 2006. The City has not determined its effect on the financial statements.
GASB Statement No. 43 - In April 2004, the GASB issued Statement No. 43, Financial Reporting for
Postemployment Benefit Plans Other Than Pension Plans. This statement establishes accounting and
financial reporting standards for plans that provide postemployment benefits other than pension benefits
(known as other postemployment benefits or OPEB). This statement is not effective until June 30, 2007.
This statement is not expected to have a significant impact on the financial statements of the City.
GASB Statement No. 44 - In May 2004, the GASB issued Statement No. 44, Economic Condition
Reporting: The Statistical Section-an amendment of NCGA Statement No. 1. This Statement amends the
portions of NCGA Statement 1, Governmental Accounting and Financial Reporting Principles, that guide the
preparation of the statistical section. The statistical section presents 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 is not
effective until June 30, 2006. The City has not determined its effect on the financial statements.
GASB Statement No. 45 - In June 2004, the GASB issued Statement No. 45, Accounting and Financial
Reporting by Employers for Postemployment Benefits Other Than Pensions. This Statement establishes
standards for the measurement, recognition, and display of OPEB expense/expenditures and related liabilities
(assets), note disclosures, and, if applicable, required supplementary information(RSI) in the financial reports
of state and local governmental employers. This statement is not effective until June 30, 2008. The City has
not determined its effect on the financial statements.
Q. 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 effect certain reported
amounts and disclosures. Accordingly, actual results could differ from those estimates.
R. Use of Restricted Resources
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, and then unrestricted resources as they are needed.
36
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#2—CASH AND INVESTMENTS
The City maintains a cash and investments pool, which is available for use by all funds. Each fund's portion of
the pool is displayed on the Financial Statements as "Cash and Investments".
Trustees or an escrow agent holds all restricted cash and investments of the City. The California Government
Code provides that these funds, in the absence of specific governing provisions to the contrary,may be invested in
accordance with the resolutions or indentures that specify the allowable investment of bond proceeds and funds
earmarked for bond repayment.
Cash and investments at June 30,2004, consisted of the following:
Unrestricted Cash and Investments
Cash on hand $ 1,100
Demand deposits 111,807
LAIF 55,716,835
Ventura County Pool 4,200,000
U.S.Treasury and Agency Securities 7,937,171
Total Unrestricted Cash and Investments 67,966,913
Restricted Investments
Money Markets 37,516
Guaranteed Investment Contracts 1,355,774
Total Restricted Investments 1,393,290
Total Cash and Investments $ 69,360,203
Cash and investments are reported in the basic financial statements as follows:
Governmental Funds:
Unrestricted $ 65,846,501
Restricted 1,393,290
Fiduciary Funds:
Unrestricted 2,120,412
Total Cash and Investments $ 69,360,203
Interest income earned on pooled cash and investments is allocated quarterly to the funds based on average
monthly cash and investment balances. Interest income from restricted cash is allocated directly to the fund
earning the income.
37
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE#2—CASH AND INVESTMENTS,Continued
Authorized Investments
Under provisions of the City's Investment Policy, and in accordance with Section 53601 of the California
Government Code, the City may invest in the following types of instruments, subject to certain restrictions as to
maturity and percentage of portfolio:
• Securities of the U. S. government or its agencies
• Small business administration loans
• Certificates of deposit(or time deposits)placed with commercial banks and/or savings and loan companies
• Negotiable certificates of deposit
• Bankers' acceptances
• Commercial paper
• Local Agency Investment Fund(LAIF)
• Repurchase agreements,Passbook savings accounts
• Reverse-repurchase agreements
Throughout the year ended June 30, 2004, the City did not utilize overnight repurchase agreements, reverse-
repurchase agreements, or investment vehicles; nor did it engage in security lending activities.
Classification of Pooled Deposits and Investments by Credit Risk
The California Government Code requires California banks and savings and loan associations to secure a city's
deposits by pledging government securities as collateral. The market value of pledged securities must equal at
least 110 percent of a City's deposits. California law also allows financial institutions to secure City deposits by
pledging first trust deed mortgage notes having a value of 150 percent of a city's total deposits.
The City may waive collateral requirements for deposits,which are fully insured by federal depository insurances.
In accordance with GASB Statement No. 3, deposits and investments are classified as to credit risk by three
categories as follows:
Deposits:
Category 1: Insured or collateralized with securities held by the City or by its agent in the City's name.
Category 2: Collateralized with securities held by the pledging financial institution's trust department or agent
in the City's name.
Category 3: Uncollateralized. This includes any bank balance that is collateralized with securities held by the
pledging financial institution or by its trust department or agent, but not in the City's name. The
balance is predominantly there waiting for checks to clear.
38
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#2—CASH AND INVESTMENTS,Continued
Investments:
Category 1: Insured or registered, or securities held by the City or its agent in the City's name.
Category 2: Uninsured and unregistered, with securities held by the pledging financial institutions or
counterparty's trust department or agent in the City's name.
Category 3: Uninsured and unregistered, with securities held by the counterparty or by its trust department or
agent,but not in the City's name.
Pooled deposits were categorized as follows at June 30, 2004:
Bank
Bank Balance Category(1) Balance Carrying
1 2 3 Total Amount
Demand Deposits $ 100,000 $2,485,957 $ 2,585,957 $ 111,807
Investments at June 30, 2004,by risk category are as follows:
Category Carrying
1 2 3 Value Fair Value
Unrestricted Investments
Local Agency Investment Fund(1) $55,716,835 $55,626,806 (2) -
Ventura County Pool(1) 4,200,000 4,200,000 (3)
US Treasury Notes $ 4,984,700 4,984,700 4,984,700
FNMA 2,952,471 2,952,471 2,952,471
Total Unrestricted Investments 7,937,171 67,854,006 67,763,977
Restricted Investments
Fidelity US Treasury Money Market Funds(1) 37,516 37,516
Transamerica Investment Agreement 1999(1) 771,000 771,000
CDC Funding Investment Agreement 2001 (1) 584,774 584,774
Total Restricted Investments 1,393,290 1,393,290
Total Investments $ 7,937,171 $69,247,296 $69,157,267
(1) Not subject to categorization.
(2) The management of the State of California Pooled Money Investment Account(generally referred to as LAIF)
has indicated to the City that as of June 30, 2004, the carrying amount of the pool was $57,600,699,158 and
the estimated market value of the pool (including accrued interest) was $57,637,500,817. The City's
proportionate share of the value is $55,716,835. Included in LAIF's investment portfolio are certain asset-
backed securities totaling $923,459,000. LAIF's (and the City's) exposure to risk(credit, market, or legal) is
not currently available.
39
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#2—CASH AND INVESTMENTS, Continued
(3) The management of the Ventura County Treasurer's Investment Pool, a local government investment pool,
has indicated to the City that as of June 30,2004, the carrying amount of the pool was$1,298,596,707 and the
estimated market value of the pool was $1,291,867,434. The City's proportionate share of that value was
$4,200,000.
Fair Value of Investments
GASB Statement No. 31 generally applies to investments in external investment pools (State of California LAW),
investments purchased with maturities greater than one year, mutual funds, and certain investment pools
agreements. Generally, governmental entities need to report the "fair value" changes for these investments at
year-end and record these gains or losses on their income statement.
Methods and Assumptions Used to Estimate Fair Value: The City maintains investment accounting records on
amortized cost and adjusts those records to 'fair value' on an annual basis. Unrealized gains and losses are
recorded on an annual basis and the carrying value of its investments is considered 'fair value'. The City's
investment custodian provides market values on each investment instrument. The investments held by the City
are widely traded in the financial markets and trading values are readily available from numerous published
sources. The City has elected to report its money market investments (those investments with maturities of less
than one year)at amortized cost adjusted to fair value on an annual basis.
State of California Local Agency Investment Fund (LAIF): The City holds an investment in LAW that is
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 LAIF. The City relied upon information provided by the State Treasurer
in estimating the City's fair value position of its holding in LAW. The City had a contractual withdrawal value of
$55,716,835 whose pro-rata share of fair value was estimated by the state Treasurer to be $55,626,806. The fair
value change in this investment for the year came to an amount that was not material for presentation in the
financial statements.
LAW is a governmental investment pool managed and directed by the California State Treasurer and is not
registered with the Securities and Exchange Commission. An oversight committee, comprised of California State
officials and various participants, provide the management of the fund. The daily operations and responsibilities
of LAW fall under the auspices of the State Treasurer's office. The City is a voluntary participant in the
investment pool.
40
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#2-CASH AND INVESTMENTS, Continued
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$4,200,000 at fiscal year end.
The Ventura County Treasurer's Investment Pool is a governmental investment pool managed and directed by the
elected Ventura County Treasurer. The County Pool is not registered with the Securities and Exchange
Commission. An oversight committee, comprised of local government officials and various participants, provide
oversight to the management of the fund. The daily operations and responsibilities of the Pool fall under the
auspices of the County Treasurer's office. The City is a voluntary participant in the investment pool.
NOTE#3-NOTES AND LOANS RECEIVABLE
Notes and loans receivable activity for the year ended June 30, 2004, are as follows:
(See Note#15) Beginning
Beginning Prior Period Balance Ending
Balance Adjustments as Restated Increases Decreases Balance
Notes Receivable
Janss IV Recreation Inc. $ 400,000 $ 400,000 $ 350,000 $ (17,178) $ 732,822
Asadurian $ 1,200,000 1,200,000 1,200,000
Mission Bell 3,274,576 3,274,576 (500,000) 2,774,576
Cabrillo 838,063 838,063 838,063
Toll Brothers 400,000 400,000 (400,000)
Deferred Property Assessments 250,249 250,249 250,249
Charles Abbott and Associates 6,361 6,361 6,361
Total Notes Receivable 5,969,249 400,000 6,369,249 350,000 (917,178) 5,802,071
Loans Receivable
Employee Computer 6,992 6,992 4,475 (5,790) 5,677
Rehabilitation 73,174 24,805 97,979 (31,157) 66,822
First-time Homeowners Assistance 293,302 (65,274) 228,028 (36,092) 191,936
CalHome 76,778 76,778 322,336 (19,540) 379,574
Total Loans Receivable 373,468 36,309 409,777 326,811 (92,579) 644,009
Total Notes and Loans Receivable $ 6,342,717 $ 436,309 $ 6,779,026 $ 676,811 $ (1,009,757) $ 6,446,080
41
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#3—NOTES AND LOANS RECEIVABLE, Continued
A. Janss Notes
On February 19, 2003, the Redevelopment Agency of the City of Moorpark (the Agency) entered into an
agreement with Janss IV Recreation Inc. whereby the Agency loaned $400,000 in exchange for a promissory
note. The loan shall be for a term of thirty(30)years and shall bear interest at a rate of three percent(3%)per
annum for the first five (5) years, and at an adjustable rate not to exceed six percent (6%) per annum for the
remaining twenty five (25) years of the loan. Principal and interest shall be payable in monthly installments.
The balance outstanding at June 30,2004 was$389,522.
On September 5, 2003, the Agency entered into an agreement with Janss IV Recreation Inc. whereby the
Agency loaned $350,000 in exchange for a promissory note. The loan shall be for a term of five (5) years
with monthly payments of$1,476 based on a thirty(30) year amortization and the balance of all principal and
accrued interest are due at the end of the five (5) year term. The note bears interest at a rate of three percent
(3%)per annum. The balance outstanding at June 30, 2004 was $343,300.
B. Asadurian Note
On April 7, 2003, the City entered into an agreement with Asadurian Investment Corporation whereby in
return for land disposition, the City received a$1,200,000 promissory note. The note bears simple interest at
the rate equal to the average monthly interest rate announced by the Local Agency Investment Fund(LAIF).
The borrower shall pay to the City the amount of$80,000 plus interest over fifteen years. The first payment
is due prior to the first certificate of occupancy for the project, or April 2, 2005, whichever comes first.
C. Mission Bell Note
On August 2, 1995, the Agency entered into an agreement with Mission Bell Partners whereby in return for
land disposition, the Agency received seven promissory notes totaling $3,934,500. The notes bear simple
interest from a rate of three percent to a rate of six percent per annum from August 29, 1995 until August 29,
2027. Principal and interest payments are due June 30 annually. In June 2004 the Agency, per a settlement
agreement, discharged three of the seven promissory notes totaling $500,000. This charge off has been
reflected as a "special item" in the Statement of Activities. The balance outstanding at June 30, 2004, was
$2,774,576.
D. Cabrillo Note
On May 23, 2001, the Agency entered into an agreement with Cabrillo Economic Development Corporation
whereby in return for land disposition,the Agency received a$1,475,000 note. The note bears simple interest
at the rate equal to the quarterly interest rate announced by the Local Agency Investment Fund (LAIF).
Principal and interest are due and payable upon the sale of each designated market rate home. The borrower
shall pay to the City the amount of$33,523, which is equal to 1144th of the total principal due under this note
at the time of sale. This amount is disbursed to the Agency through the sales escrow. The balance
outstanding as of June 30,2004, was$838,063.
42
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#3—NOTES AND LOANS RECEIVABLE, Continued
E. Toll Brothers Note
On June 20, 2001, the City entered into an agreement with Toll CA GP Corporation pertaining to conditions
of approval for Tract 4928 within the City. Toll agreed to pay the City $845,320 in three payments as
follows: $220,320 within 30 days of City Council approval of Minor Modification No. 3; $225,000 on or
before August 1, 2002; and $400,000 five days after the Council approves the final map for phase 3 and 4 of
the tract. The payments satisfy Toll's Casey Road/Gabbert Road AOC obligation. In 2004, the City per a
settlement agreement discharged the remaining obligation of$400,000. This charge off has been reflected as
a"special item"in the statement of activities.
F. Deferred Property Assessment Notes
In March 1993, the City entered into three agreements with 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 equivalent to the LAIF variable
rate not to exceed 7 percent 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, 2004,
the principal balance outstanding was $250,249.
G. Charles Abbott and Associates Settlement Note
On April 2, 2002, the City entered into an agreement with Charles Abbott and Associates whereby in return
for deferred developer fees the City received a promissory note for$221,010. Principal is due in 18 monthly
payments. At June 30, 2004,the balance outstanding was $6,361.
H. Employee Computer Loans
The City operates an employee computer loan program. The City allows employees to buy computers and
make payments over 5 years. The balance outstanding at June 30,2004,was $5,677.
I. Rehab Loans
The Redevelopment Agency of the City of Moorpark(the Agency) operates a rehabilitation loan program for
the renovation of low-moderate income housing. The total balance outstanding at June 30, 2004, was
$66,822.
J. First-Time Homeowners Down-Payment Assistance Program
The City operates a first-time homeowners down-payment assistance program. The total balance outstanding
at June 30, 2004,was $191,936 for City assisted loans and$379,574 for CAL-Home assisted loans.
43
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#4—INTERFUND TRANSACTIONS
Due To/Due From Other Funds
Due to/due from other funds for the year ending June 30, 2004,consisted of the following:
Due to the General Fund from:
Non-Major Special Revenue Funds $ 140,183
Due to the Endowment Special Revenue Fund from:
Police Facilities Fee Capital Projects Funds $ 746,856
Due to Redevelopment Agency Capital Projects Fund from:
Non-Major Special Revenue Funds $ 188,834
Interfund Transfers
Interfund transfers for the year ended June 30, 2004, consisted of the following:
Transfer From
Redevelopment
Agency Non-Major
General Debt Service Governmental
Fund Fund Funds Total
Community Development
Special Revenue Fund $ 4,500 $ 4,500
Endowment
Special Revenue Fund $ 521,104 521,104
H Redevelopment Agency
Capital Projects Fund $ 1,300,000 1,300,000
F, Redevelopment Agency
Debt Service Fund 152,542 152,542
Non-Major
Governmental Funds 687,404 835,572 87,595 1,610,571
Total $ 691,904 $ 2,135,572 $ 761,241 $ 3,588,717
44
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE#4—INTERFUND TRANSACTIONS,Continued
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund
that statute or budget requires to expend them and (2) use unrestricted revenues collected in the General Fund to
finance various programs accounted for in other funds in accordance with budgetary authorizations or grant
matching requirements.
The Debt Service Fund transferred funds to the Low/Mod Housing Special Revenue Fund to meet the low and
moderate income housing 20 percent tax increment set-aside requirement.
The Low/Mod Housing Special Revenue Fund transferred funds to the Debt Service Fund to pay the 20% debt
service on bond issues. The Debt Service Fund transferred funds to the Capital Projects Fund to fund future
capital projects.
Advance to the City of Moorpark Redevelopment Agency
During the fiscal year the City's General Fund advanced the Agency's Debt Service Fund $5,000,000 for capital
projects which will eliminate blighted project areas. The advance will bear interest at a rate equivalent to the City
investment in LAIF,plus one percent.
Also, during the fiscal year, the City's General Fund advanced the Agency's Debt Service Fund $1,352,970, the
Agency's Capital Projects Fund $118,946 and the Agency's Low/Mod Housing Special Revenue Fund $164,687
for redevelopment activities.
The Agency will repay the amounts advanced from the City, both principal and interest on our before June 30,
2005.
45
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#5—CAPITAL ASSETS AND DEPRECIATION
In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the
Government-Wide Statement of Net Assets. The City elected to use the basic approach as defined by GASB
Statement No. 34 for all infrastructure reporting, whereby depreciation expense and accumulated depreciation has
been recorded. The following table presents the capital assets activity for the year ended June 30, 2004.
(See Note#15) Beginning
Beginning Prior Period Balance, Ending
Balance Adjustments as Restated Increases Decreases Balance
Governmental Activities
Capital Assets,
Not Being Depreciated:
Land $ 31,410,929 $ 31,410,929 $ 1,052,284 $ 32,463,213
Construction in Progress $ 2,247,550 2,247,550 5,083,335 7,330,885
Total Capital Asset
Not Being Depreciated 31,410,929 2,247,550 33,658,479 6,135,619 39,794,098
Capital Assets,Being Depreciated:
Buildings and improvements 8,475,033 68,153 8,543,186 8,543,186
Machinery and equipment 1,739,332 (271,347) 1,467,985 62,103 1,530,088
Infrastructure
Roadway system 86,425,848 86,425,848 411,451 86,837,299
Storm drainage system 1,619,399 1,619,399 1,619,399
Parks system 156,727 156,727 156,727
Total Capital Assets,
Being Depreciated 98,416,339 (203,194) 98,213,145 473,554 98,686,699
Less Accumulated Depreciation For:
Buildings and improvements (1,745,215) (672,732) (2,417,947) (238,595) (2,656,542)
Machinery and equipment (1,364,510) 918,648 (445,862) (158,842) (604,704)
Infrastructure
Roadway system (20,527,292) (20,527,292) (906,091) (21,433,383)
Storm drainage system (87,535) (87,535) (16,194) (103,729)
Parks system (32,912) (32,912) (3,135) (36,047)
Total Accumulated Depreciation (23,757,464) 245,916 (23,511,548) (1,322,857) (24,834,405)
Total Capital Assets,
Being Depreciated,Net 74,658,875 42,722 74,701,597 (849,303) 73,852,294
Governmental Activities Capital
Assets,Net $ 106,069,804 $ 2,290,272 $ 108,360,076 $ 5,286,316 $ - $ 113,646,392
46
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#5—CAPITAL ASSETS AND DEPRECIATION, Continued
Depreciation expense was charged to the governmental functions/programs.
General government $ 22,262
Public safety 19,601
Public service, including depreciation of general infrastructure assets 1,062,169
Parks and recreation 218,825
Total Depreciation Expense $ 1,322,857
NOTE#6—LONG-TERM LIABILITIES
Long-term liability activities for the year ended June 30, 2004, are as follows:
Balance at
Beginning Balance at Due Within
of Year Additions Reductions End of Year One Year
1999 Tax Allocation Bonds $ 8,475,000 $(380,000) $ 8,095,000 $ 395,000
2001 Tax Allocation Bonds 11,625,000 (15,000) 11,610,000 10,000
Employee Compensated Absences 320,245 $ 70,581 390,826
$ 20,420,245 $ 70,581 $(395,000) $20,095,826 $ 405,000
A. 1999 Tax Allocation Bonds
In 1999, the Redevelopment Agency issued a $9,860,000 aggregated principal amount of Moorpark
Redevelopment Project 1999 Tax Allocation Refunding Bonds (the Bonds). The purpose of the Bonds was to
advance refund the Agency's previously issued $10,000,000 Moorpark Redevelopment Project, 1993 Tax
Allocation Bonds. The purpose of the 1993 Bonds was to finance a portion of the costs of implementing the
Redevelopment Plan, including low-and moderate-income housing projects. The 1999 Bonds bear interest at
rates ranging from 3.05 percent to 4.875 percent per annum, payable semi-annually on April 1 and October 1
of each year, commencing on October 1, 1999, and are subject to mandatory sinking fund redemption
commencing on October 1, 2009, and on each October 1 thereafter. The Bonds are payable from and secured
by the tax revenues to be derived from the project area.
The bonds are secured by all property tax increment revenue, which is deposited directly with the fiscal agent
and recorded in the Debt Service Fund. Cash and investments in the custody of the fiscal agent are restricted
by the bond resolutions for payment of principal and interest on the Tax Allocation Bonds. In addition, the
bond resolutions require retention of funds held by the fiscal agent prior to use for other than debt service.
The Redevelopment Agency is in compliance with the covenants contained in debt indentures, which require
the establishment of certain specific accounts for the Tax Allocation Bonds.
47
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE#6-LONG-TERM LIABILITIES,Continued
Debt service payments on the 1999 Tax Allocation Refunding Bonds payable will be made from the Debt
Service Fund. Annual debt service requirements to maturity are as follows:
Year Ended Tax Allocation Bonds
June 30 Principal Interest Total
2005 $ 395,000 $ 368,369 $ 763,369
2006 405,000 353,065 758,065
2007 425,000 336,668 761,668
2008 440,000 319,148 759,148
2009 460,000 300,583 760,583
2010-2014 2,630,000 1,147,632 3,777,632
2014-2019 3,340,000 422,906 3,762,906
Total $ 8,095,000 $ 3,248,370 $ 11,343,370
B. 2001 Tax Allocation Bonds
In December 2001, the Redevelopment Agency of the City of Moorpark issued $11,625,000 of Tax
Allocation Parity Bonds. The proceeds of the Bonds will be used to fund redevelopment activities within the
Moorpark Redevelopment Project area. Interest on the 2001 Bonds is payable semi-annually on April 1 and
October 1, commencing April 1, 2002, at rates ranging from 2.85 percent to 5.13 percent per annum. The
2001 Bonds maturing October 2031, are subject to mandatory sinking fund redemption in the amount of the
principal and accrued interest. The Bonds are payable from and secured by the tax revenues to be derived
from the project area.
The Redevelopment Agency is in compliance with the covenants contained in debt indentures, which require
the establishment of certain specific accounts for the Tax Allocation Bonds.
Year Ended Tax Allocation Bonds
June 30 Principal Interest Total
2005 $ 10,000 $ 591,573 $ 601,573
2006 15,000 591,216 606,216
2007 15,000 590,819 605,819
2008 15,000 590,309 605,309
2009 15,000 589,176 604,176
2010-2014 85,000 2,935,153 3,020,153
2015-2019 100,000 2,913,876 3,013,876
2020-2024 3,530,000 2,473,207 6,003,207
2025-2029 4,520,000 1,449,094 5,969,094
2030-2033 3,305,000 259,453 3,564,453
Total $11,610,000 $12,983,875 $24,593,875
48
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#6—LONG-TERM LIABILITIES, Continued
C. Employee Compensated Absences
The long-term liability at June 30, 2004, is $390,826 for employee compensated absences. There is no
current liability estimated. The General Fund is primarily expected to liquidate this liability.
D. Prior Year Defeasance of Debt
In 1999, the Agency defeased the 1993 Tax Allocation Revenue Bonds by placing the proceeds of new bonds
in an escrow account, with the 1999 Tax Allocation Refunding Bonds issue's trustee, to provide for all further
debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the
defeased bonds are not included in the Agency's financial statements. The principal amount outstanding on
the defeased bonds as of June 30, 2004, are$7,530,000.
NOTE#7—AGREEMENTS WITH VARIOUS TAXING AGENCIES
The Moorpark Redevelopment Agency has entered into four (4) agreements for allocation and distribution of tax
increment revenues. The Agency has entered into an agreement with the County of Ventura, Ventura County
Library District, Ventura County Fire Protection District, and Ventura County Flood Control District
(collectively, the "County Taxing Entities"), which provide for the Agency to retain 100 percent of the County
Taxing Entities share (55.82 percent) of annual tax increment revenues up to $1,750,000. For annual tax
increment revenue in excess of $1,750,000, the Agency shall distribute 55.82 percent of such revenues to the
County on behalf of the County Taxing Entities. The County Taxing Entities have agreed to defer payments in
the initial years of the Redevelopment Plan, and consequently, the parties agree that the County Taxing Entities
may receive payments in any single fiscal year in excess of the amount of tax revenues the County Taxing Entities
would otherwise be entitled to, but for the adoption of the Redevelopment Plan. Additionally,the agreement calls
for the Agency to receive a $1,000,000 payment from the tax increment disbursed to the County pursuant to the
agreement, by December 31, 2008, if and only if the Agency's annual debt statements which are filed with the
County Auditor-Controller from fiscal year 1993-94 to fiscal year 2008-09 list debts in an amount equal to or in
excess of the maximum tax increment available to the Agency in each of such fiscal years.
The second agreement is with the City of Moorpark Vector Control, formerly known as the Moorpark Mosquito
Abatement District and states that the City of Moorpark Vector Control shall receive 87.5 percent of its share
(1.53 percent)of annual tax increment revenue. The City of Moorpark Vector Control has agreed to contribute its
pro rata share of the Agency's required annual payment to the Agency.
The third agreement is with the Moorpark Unified School District(the School District), and states that the School
District shall receive,after the Agency has satisfied debt service payments to bond or note holders or to the holder
of any other instruments of Agency indebtedness (provided such indebtedness is not reasonably foreseeable to
impair the Agency's obligation under the agreement), the School District's share(33.41 percent) of tax increment
revenues generated by an annual 2 percent increase in assessed valuation, and beginning in fiscal year 1995-96,
14 percent of the School District's share of annual tax increment revenue.
49
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#7—AGREEMENTS WITH VARIOUS TAXING AGENCIES, Continued
The fourth agreement is with the Ventura County Community College District (the Community College District),
and states that the Community College District will receive, after the Agency has satisfied debt service payments
to bond or note holders or to the holders of any other instruments of Agency indebtedness (provided such
indebtedness is not reasonably foreseeable to impair the Agency's obligation under the agreement), the
Community College District's share (5.81 percent) of tax increment revenues generated by an annual 2 percent
increase in assessed valuation, and, beginning in fiscal year 1993-94, 14 percent of the Community College
District's share of annual tax increment revenue.
The fifth agreement is with the Ventura County Superintendent of Schools Office(the Superintendent), and states
that the Superintendent shall receive its share (2.49 percent) of tax increment revenues generated by an annual
2 percent increase in assessed valuation.
NOTE#8—RETIREMENT PLAN
A. Plan Description
The City's defined benefit pension plan (the Plan) provides retirement and disability benefits, annual cost-of-
living adjustments, and death benefits to plan members and beneficiaries. The Plan is part of the Public
Agency portion of the California Public Employees Retirement System (Ca1PERS), and agent-multiple-
employer plan administered by Ca1PERS, which acts as a common investment and administrative agent for
participating public employers within the State of California. A menu of benefit provisions as well as other
requirements are established by State statutes within the Public Employees' Retirement Law. The City of
Moorpark selects optional benefits through local ordinance. CaIPERS issues a separate comprehensive
annual financial report. Copies of Ca1PERS' annual financial report may be obtained from the Ca1PERS
Executive Office—400 P. Street, Sacramento, CA 95814.
All full-time City employees are eligible to participate in the Plan. Part-time employees appointed to a term
of one year or longer and who work an average of 20 hours per week are also eligible to participate. Other
part-time non-benefited hourly employees do not participate in the Plan. (Effective January 1, 1992, such
part-time employees participate in a defined deferred compensation program). Related benefits vest after five
years of service. Upon five years of service, employees who retire at or after age 50 are entitled to receive an
annual retirement benefit.
The benefit is payable monthly for life, in an amount that varies from 1.426 percent at age 50 to 2 percent at
age 55 to a maximum of 2.418 percent at age 63, of the employees' average of the three highest year's salary
for each year of credited service. The Plan also provides death and disability benefits.
50
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#8—RETIREMENT PLAN, Continued
B. Funding Policy
Active plan members in the Plan are required to contribute 7.00 percent of their covered salary. The City
makes the contribution required of City employees on their behalf. The City is also required to contribute the
actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial
methods and assumptions used are those adopted by the Ca1PERS Board of Administration. The required
employer contribution rate for the fiscal year ended June 30, 2004, was 3.581 percent. The contribution
requirements of the plan members are established by State statute and the employer contribution rate is
established and may be amended by Ca1PERS.
C. Annual Pension Cost
For the year ended June 30, 2004, the City's annual pension cost and its actual contributions were $126,573.
Also, contributions made directly from employees were zero, but on behalf of the employees the City
contributed a total of$252,029. The required contribution for the year ended June 30, 2004, was determined
as part of the June 30, 2002, actuarial valuation using the entry age normal actuarial cost method with the
contributions determined as a percent of pay. The actuarial assumptions included: (a) 8.25 percent investment
rate of return (net of administrative expenses); (b) projected salary increases that vary by duration of service
ranging from 3.75 percent to 14.20 percent for miscellaneous members: and; (c) zero percent cost-of-living
adjustment. Both (a) and (b) include an inflation component of 3.5 percent. The actuarial value of
Miscellaneous Plan's assets was determined using a technique that smoothes the effect of short-term volatility
in the market value of investments over a two to five year period depending on the size of investment gains
and/or losses. Miscellaneous Plan's unfunded actuarial accrued liability(or excess assets) is being amortized
as a level percentage of projected payroll on a closed basis. The remaining amortization period at June 30,
2002, was three years.
Three-Year Trend Information
Annual Pension Cost Percentage of APC Net Pension
Fiscal Year Ending (APC) Contributed Obligation
6/30/2002 $ 0 100% $0
6/30/2003 $ 31,456 100% $0
6/30/2004 $ 126,573 100% $0
Funded Status of the Plan
Entry Age Unfunded
Normal Actuarial (Overfunded) Annual UAAL As a
Accrued Value of Liability Funded Covered %of
Valuation Date Liability Assets (UAAL) Ratio Payroll Payroll
6/30/2000 $3,667,082 $5,053,792 $ (1,386,710) 137.8% $2,291,864 (60.5)%
6/30/2001 $4,380,051 $5,444,425 $ (1,064,374) 124.3% $2,756,860 (38.6)%
6/30/2002 $5,318,235 $5,366,749 $ (48,514) 100.9% $3,057,091 (1.6)%
51
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#9—CONDUIT DEBT—REVENUE BONDS
The City sponsored a revenue bond program during the year ended June 30, 1985, under which $20,000,000 of
Single-Family Residential Mortgage Revenue Bonds were issued. The Single-Family Mortgage program is
designed to provide funds to acquire mortgage loans on single-family residences located in the City. These bonds
are secured by a pledge of all loans receivable advanced from the bond proceeds by the trustee, First Interstate
Bank of California, and are serviced from payments on the loans to the Trustee. During the year ended June 30,
1995, the outstanding mortgages in this program were sold, the proceeds were used to establish an irrevocable
trust to defease the bonds at April 1, 1995, and the program was discontinued.
The City Council, serving as the Industrial Development Authority of the City of Moorpark, issued$9,300,000 of
Industrial Revenue Bonds during the year ended June 30, 1986. The bonds were issued to finance the
development and construction of manufacturing facilities for the Kavlico Corporation. These bonds are secured
by a standby letter of credit issued by Bank of America. Bank of New York serves as the Trustee for these bonds.
The unpaid principal balance on such bonds is$6,795,000 at June 30, 2004.
The City of Moorpark Mobile Home Park Revenue Bonds (Villa Del Arroyo) Series 2000 A and the City of
Moorpark Mobile Home Park Subordinate Revenue Bonds (Villa Del Arroyo) Series 2000 B were issued in the
amounts of$12,740,000 and $2,635,000 respectively. Both issuances were dated May 19, 2000. The Series A
bonds were issued to fund a loan to Augusta Homes, a California non-profit public benefit corporation, to finance
the acquisition of the Villa Del Arroyo Mobile Home Park. The Series B bonds were issued for the same purpose
but are subordinate to the Series A bonds. The total bonds outstanding at June 30,2004,total$14,620,000.
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, 2004,totaled$16,000,000.
Each of the bond programs described above do not constitute an indebtedness of the City, and there is neither a
legal nor a moral obligation on the part of the City to make payments on such bonds from any source other than
the revenues and assets pledged therefore. The programs are completely administered by the Trustees without
any involvement by the City. Accordingly, these programs and the bonds issued thereunder have been excluded
from the accompanying basic financial statements.
52
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#10—SPECIAL ASSESSMENT BONDS
A. Mission Bell Plaza AD 92-1
On April 1, 1994, the City sponsored the issuance of special assessment bonds to finance certain capital
improvements for the Mission Bell Plaza project. These bonds, totaling $2,595,000, of which $735,000 and
$1,475,000 mature in 2013 and 2023, respectively, were issued under the 1915 Improvement Bond Act and
are obligations against the properties in the assessment district. The special assessment, which is collected
with other property related taxes as part of the secured property tax bill for properties in the assessment
district, will be forwarded to an independent bank that serves as the paying agent. These bonds do not
constitute an indebtedness of the City, and the City is not liable for their repayment. Accordingly, these
special assessment bonds payable have been excluded from the accompanying basic financial statements. The
unpaid principal balance on such bonds is$1,770,000 at June 30, 2004.
Seven properties in the assessment district, which had been zoned for commercial use prior to the City's
incorporation, are currently used for residential, commercial and agricultural purposes. At various times, the
City has advanced monies and contributed assessments on these properties from the Los Angeles Avenue
Area of Contribution Special Revenue Fund to the paying agent, which the paying agent has used to purchase
certain securities which have been placed in trust accounts to be used solely to provide for principal of and
interest on the seven properties' proportionate share of the bonds through maturity. Notes receivable, secured
by deeds of trust and various accounts receivable, have been established for these advances with interest
accruing at a variable rate equivalent to the rate at which the City earns on funds deposited in the State
Treasurer's Local Agency Investment Fund or 7 percent, whichever is less. Under the terms of the original
promissory notes, the notes and accrued interest are due at the earlier of (1) sale of the property, (2)
conversion of the property to a commercial use or(3)the maturity of the notes in March 2023. Subsequent to
June 30, 1998, the notes were amended and the repayment terms changed as follows: the notes and accrued
interest are due August 2029.
B. Community Facilities District No. 97-1
On July 1, 1997, the City issued bonds to finance the acquisition and construction of public improvements
within the City of Moorpark Community Facilities District No. 97-1. These bonds, totaling$7,645,000, were
issued pursuant to the Mello-Roos Community Facilities Act of 1982. The bonds mature on September 1,
2027 with interest payable at rates ranging from 4.4 percent to 6 percent per annum on March 1 and
September 1 of each year commencing March 1, 1998. The City is not liable under any circumstance for the
repayment of the debt, but is only acting as agent for the property owners in collecting the assessments and
special taxes, forwarding collections to fiscal agents to pay the bondholders and initiating foreclosure
proceedings, if appropriate. Accordingly, these bonds payable have been excluded from the accompanying
general-purpose financial statements. The unpaid principal balance is $7,055,000 at June 30, 2004.
53
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE#11 —RISK MANAGEMENT
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City is a member of the California Joint Powers Insurance Authority (the Authority). The Authority is
composed of 91 California public entities and is organized under a joint powers agreement pursuant to
California Government Code 6500 et seq. The purpose of the Authority is to arrange and administer
programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange
for group-purchased insurance for property and other coverages. The Authority's pool began covering claims
of its members in 1978. Each member government has an elected official as its representative on the Board of
Directors. The Board operates through a nine-member Executive Committee.
B. Self-Insurance Programs of the Authority
General Liability: Each member government pays a primary deposit to cover estimated losses for a fiscal
year(claims year). Six months after the close of a fiscal year, outstanding claims are valued. A retrospective
deposit computation is then made for each open claims year. Costs are spread to members as follows: the first
$30,000 of each occurrence is charged directly to the member; costs from $30,001 to $750,000 are pooled
based on a member's share of costs under $30,000; costs from $700,001 to $5,000,000 are pooled based on
payroll. Costs of covered claims above$5,000,000 are currently paid by reinsurance. The protection for each
member is $50,000,000 per occurrence and$50,000,000 annual aggregate.
Workers' Compensation: The City also participates in the workers' compensation pool administered by the
Authority. Pool deposits and retrospective adjustments are valued in a manner similar to the General Liability
pool. The City of Moorpark is charged for the first $25,000 of each claim. Costs are pooled above that level
to $50,000. Costs from $50,001 to $100,000 per claim are pooled based on the member's losses under its
retention level. Costs between $100,001 and $2,000,000 per claim are pooled based on payroll. Costs
between $2,000,000 and $50,000,000 are paid by excess insurance purchased by the Authority. Cost in
excess of$50,000,000 are pooled by the members based on payroll.
C. Purchased Insurance
Property Insurance
The City of Moorpark participates in the all-risk property protection program of the Authority. This
insurance protection is underwritten by several insurance companies. The City of Moorpark property is
currently insured according to a schedule of covered property submitted by the City of Moorpark to the
Authority. Total all-risk property insurance coverage is $9,839,667. There is a $5,000 per loss deductible.
Premiums for the coverage are paid annually and are not subject to retroactive adjustments.
54
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#11 —RISK MANAGEMENT, Continued
Earthquake and Flood Insurance
The City of Moorpark purchased earthquake and flood insurance on a portion of its property. The earthquake
insurance is part of the property protection insurance program of the Authority. The City of Moorpark
property currently has earthquake protection in the amount of $7,729,906. There is a deductible of
five percent of the value with a minimum deduction of $100,000. Premiums for the coverage are paid
annually and are not subject to retroactive adjustments.
D. Adequacy of Protection
During the past three fiscal (claims) years none of the above programs of protection have had settlements or
judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or
insured liability coverage from coverage in the prior year.
NOTE#12—CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE
In the Government-wide financial statements; net assets are classified in the following categories:
Invested in Capital Assets
This category groups all capital assets, including infrastructure, into one component of net assets. Accumulated
depreciation on these assets reduces this category.
Restricted Net Assets
This category presents external restrictions imposed by creditors, grantors, contributions, or laws and regulations
of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Assets
This category represents the net assets of the City that are not externally restricted for any project or other
purpose.
In the Fund Financial Statements, the City has established"reserves" to segregate portions of fund balance which
are not appropriable for expenditure in future periods, or which are legally set aside for a specific future use.
Fund"designations"also are established to indicate tentative plans for financial resource utilization of unreserved
fund balance in a future period.
55
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#12—CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE, Continued
The City's governmental funds reserves and designations at June 30, 2004, are presented below, followed by
explanations of the nature and purpose of each reserve and designation.
Redevelopment Redevelopment
Agency Agency Non-Major
Capital Projects Debt Service Governmental
Fund Fund Funds
Reserved:
Debt service $ 1,393,290
Property held for resale $ 337,487 $ 1,207,961
Housing set-aside 1,161,111
Total Reserved $ 337,487 $ 1,393,290 $ 2,369,072
Unreserved,designated:
Future projects $ 897,118
A. Reserved for Debt Service
These funds are reserved for restricted debt proceeds.
B. Reserved for Property Held for Resale
These funds are reserved for property purchased by the City to be sold or otherwise used for the development
of the Redevelopment Agency Project Areas.
C. Reserved for Housing Set-Aside
These funds are for the development of low and moderate-income housing.
D. Unreserved,Designated for Future Projects
These funds have been designated for future capital projects.
E. Deficit Fund Balance
The following fund had a deficit at June 30,2004:
Police Facilities Fee Capital Projects Fund $ 1,387,154
The deficit will be made up through future police facilities assessment fees.
56
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE#13—EXPENDITURES IN EXCESS OF APPROPRIATIONS
The following fund had expenditures in excess of the budget in the following amount for the year ended June 30,
2004:
Redevelopment Agency Debt Service Fund $ 151,236
Community Development Special Revenue Fund $ 546,505
NOTE#14—COMMITMENTS AND CONTINGENCIES
A. Commitments
The City has contracts with the 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.
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 disallowances under the terms of the grants, it is
believed that any disallowed amounts will not be material.
57
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2004
NOTE#15—RESTATEMENT OF NET ASSETS
During the 2003-04 fiscal year it was found that the City had not recorded certain notes receivable, which existed
as of June 30, 2003 (see Note #3). The City recorded a restatement of beginning net assets in order to recognize
the notes receivable. Also, the City did not record construction in progress in the prior year due to the fact that
the capital asset valuation performed by an engineering firm in fiscal year 2002-2003 did not include construction
in progress. The following table summarizes the effect of these restatements:
Net Assets Beginning of Year,as Previously Reported $ 159,106,739
Recognition of Construction in Progress 2,247,550
Recognition of Capital Asset,Net of Depreciation 42,722
Recognition of Notes Receivable 436,309
Net Assets Beginning of Year, as Restated $ 161,833,320
NOTE#16—SUBSEQUENT EVENT
In October 2004, the remaining bonds outstanding on the defeased 1993 Tax Allocation Revenue Bonds were
called in full.
58
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SUPPLEMENTARY SCHEDULES
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CITY OF MOORPARK
JUNE 30,2004
MAJOR FUND BUDGETARY COMPARISON SCHEDULES
Budgetary comparison statements are presented as part of the basic financial statements for the General Fund and
all Major Special Revenue Funds as provided for by GASB Statement No. 34. The budgetary comparison
schedules for the remaining major funds are presented to aid in additional analysis and are not a required part of
the basic financial statements.
59
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
POLICE FACILITIES FEE CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 27,560 $ 27,560 $ 34,326 $ 6,766
Maintenance assessments 3,500,756 .•- 250,756 102,690 (148,066)
Total Revenues 3,528,316 278,316 137,016 (141,300)
EXPENDITURES
Capital outlay 8,610,000 9,222,800 2,681,409 6,541,391
Excess(Deficiency) of Revenues
Over(Under)Expenditures (5,081,684) (8,944,484) (2,544,393) 6,400,091
OTHER FINANCING SOURCES
Transfers in 4,750,000 4,750,000 (4,750,000)
Net Change in Fund Balance (331,684) (4,194,484) (2,544,393) 1,650,091
Fund Balance, Beginning of Year 1,157,239 1,157,239 1,157,239
Fund Balance, End of Year $ 825,555 $(3,037,245) $ (1,387,154) $ 1,650,091
60
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
REDEVELOPMENT AGENCY CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 361,900 $ 361,900 $ 298,075 $ (63,825)
Other revenue 35,544 35,544 35,157 (387)
Total Revenues 397,444 397,444 333,232 (64,212)
EXPENDITURES
Current:
Public services 1,447,135 1,494,414 1,124,651 369,763
Capital outlay 556,088 1,385,822 450,317 935,505
Total Expenditures 2,003,223 2,880,236 1,574,968 1,305,268
Excess (Deficiency)of Revenues
Over(Under) Expenditures (1,605,779) (2,482,792) (1,241,736) 1,241,056
OTHER FINANCING SOURCES (USES)
Transfers in 1,300,000 1,670,000 1,300,000 (370,000)
Transfers out (4,750,000) (4,750,000) 4,750,000
Total Other Financing Sources (Uses) (3,450,000) (3,080,000) 1,300,000 4,380,000
Net Change in Fund Balance (5,055,779) (5,562,792) 58,264 5,621,056
Fund Balance,Beginning of Year 10,616,627 10,616,627 10,616,627
Fund Balance, End of Year $ 5,560,848 $ 5,053,835 $10,674,891 $ 5,621,056
61
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
REDEVELOPMENT AGENCY DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $3,631,193 $3,631,193 $4,116,542 $ 485,349
Use of money and property 155,500 155,500 151,940 (3,560)
Other revenue 4,298 4,298
Total Revenues 3,786,693 3,786,693 4,272,780 486,087
EXPENDITURES
Current:
Public services 1,260,000 1,260,000 1,587,065 (327,065)
Debt service:
Principal 471,000 471,000 395,000 76,000
Interest 1,200,825 1,200,825 1,100,996 99,829
Total Expenditures 2,931,825 2,931,825 3,083,061 (151,236)
Excess of Revenues
Over(Under)Expenditures 854,868 854,868 1,189,719 334,851
OTHER FINANCING SOURCES (USES)
Transfers in 152,542 152,542 152,542
Transfers out (2,026,239) (2,026,239) (2,135,572) (109,333)
Total Other Financing Sources (Uses) (1,873,697) (1,873,697) (1,983,030) (109,333)
Net Change in Fund Balance (1,018,829) (1,018,829) (793,311) 225,518
Fund Balance,Beginning of Year 1,295,304 1,295,304 1,295,304
Fund Balance, End of Year $ 276,475 $ 276,475 $ 501,993 $ 225,518
62
CITY OF MOORPARK
JUNE 30,2004
NON-MAJOR GOVERNMENTAL FUNDS
Special Revenues Fund Descriptions
Traffic Safety Fund
The Traffic Safety Fund is used to account for revenues collected from traffic fines and forfeitures,which is used,
for crossing guards and parking enforcement.
Park Development Fund
The Park Development Fund is used to account for state and county grants used for the acquisition of open space
and park improvements.
Affordable Housing Fund
The Affordable Housing Fund is used to account for grant used for development of affordable housing units.
Assessment District Fund
The Assessment District Fund is used to account for funds received by the City for maintenance of community-
wide landscaping.
State and Federal Assistance Fund
The State and Federal Assistance Fund is used to account for Federal and State grants used for the construction of
streets and related improvements and help fund law enforcement.
State Gas Tax Fund
The State Gas Tax Fund is used to account for fees used for street maintenance, right-of-way acquisition and
street construction.
Low and Moderate Income Housing Fund
The Low and Moderate Income Housing Fund is used to account for the receipt of 20 percent of the gross tax
increment allocation, which is restricted for use on projects that increase or preserve the supply of low and
moderate income housing in accordance with Health and Safety Code Section 33334.
Local Transportation Transit Fund
The Local Transportation Transit Fund is used to account for fees used in local transportation of street projects
that help relieve traffic congestion programs and development.
Solid Waste Fund
The Solid Waste Fund is used to account for fees used on programs that promote resource,recycling, composting,
and proper disposal of hazardous household waste.
63
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CITY OF MOORPARK
JUNE 30,2004
NON-MAJOR GOVERNMENTAL FUNDS
Capital Projects Fund Descriptions
City Hall Building Fund
The City Hall Building Fund is used to account for the funds use to build the new Civic Center Complex.
Equipment Replacement Fund
The Equipment Replacement Fund is used to account for the funds use to replace city equipment and vehicles.
64
CITY OF MOORPARK
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30,2004
Special Revenue Funds
State and
Traffic Park Affordable Assessment Federal
ASSETS Safety Development Housing District Assistance
Cash and investments $ 442,338 $ 2,938,189 $ 508,702 $2,335,201 $ 2,148,334
Receivables:
Taxes 3,233
Accounts 32,607 46,899 189,934
Property held for resale
Total Assets $ 474,945 $ 2,938,189 $ 508,702 $2,385,333 $ 2,338,268
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued liabilities $ 3,761 $ 29,817 $ 83,587 $ 21,869
Due to other funds 136,507 192,510
Retention payable 867 4,260
Deferred revenue 1,469 185,517
Deposits,principally from developers
Advances from other funds
Total Liabilities 3,761 166,324 85,923 404,156
FUND BALANCES
Reserved for:
Land held for resale
Housing set-aside
Unreserved,reported in:
Special revenue funds 471,184 2,771,865 $ 508,702 2,299,410 1,934,112
Capital projects funds
Total Fund Balances 471,184 2,771,865 508,702 2,299,410 1,934,112
Total Liabilities and
Fund Balances $ 474,945 $ 2,938,189 $ 508,702 $2,385,333 $ 2,338,268
65
Special Revenue Funds Capital Projects Funds
Low and Total
Moderate Local Non-major
State Gas Income Transportation Solid City Hall Equipment Governmental
Tax Housing Transit Waste Building Replacement Funds
$ 954,821 $ 1,399,826 $ 257,339 $781,703 $ 529,616 $ 367,689 $ 12,663,758
3,233
64,400 13,028 606 31,954 379,428
1,207,961 _ 1,207,961
$ 1,019,221 $2,620,815 $ 257,945 $813,657 $ 529,616 $ 367,689 $ 14,254,380
$ 44,875 $ 86,776 $ 39,045 $ 17,478 $ 187 $ 327,395
329,017
1,585 6,712
218,900 405,886
280 280
164,687 164,687
46,460 251,743 257,945 17,478 187 1,233,977
1,207,961 1,207,961
1,161,111 1,161,111
972,761 796,179 9,754,213
529,429 $ 367,689 897,118
972,761 2,369,072 796,179 529,429 367,689 13,020,403
$ 1,019,221 $2,620,815 $ 257,945 $813,657 $ 529,616 $ 367,689 $ 14,254,380
66
CITY OF MOORPARK
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30,2004
Special Revenue Funds
State and
Traffic Park Affordable Assessment Federal
Safety Development Housing District Assistance
REVENUES
Taxes $ 480
Fines and forfeitures $ 182,758
Use of money and property 5,603 $ 72,224 $ 8,659 26,885 $ 27,676
Charges for services 2,594
Intergovernmental 1,429,390
Maintenance assessments 1,983,726
Utility franchise fees
Development fees 1,889,655
Other revenue 374 149,808 471
Total Revenues 188,361 1,962,253 158,467 2,014,156 1,457,066
EXPENDITURES
Current:
General government 97,185
Public safety 132,850 688,909 118,915
Public services 322,439
Parks and recreation 1,207,610
Capital outlay 1,621,677 211,770 2,209,111
Total Expenditures 132,850 1,621,677 322,439 2,108,289 2,425,211
Excess(Deficiency)of Revenues
Over(Under)Expenditures 55,511 340,576 (163,972) (94,133) (968,145)
OTHER FINANCING SOURCES (USES)
Transfers in 758,258
Transfers out (521,104) (16,741)
Total Other Financing Sources(Uses) (521,104) (16,741) 758,258
Net Change in Fund Balances 55,511 (180,528) (180,713) 664,125 (968,145)
Fund Balances,Beginning of Year 415,673 2,952,393 689,415 1,635,285 2,902,257
Fund Balances,End of Year $ 471,184 $ 2,771,865 $ 508,702 $2,299,410 $ 1,934,112
67
Special Revenue Funds Capital Projects
Low and Total
Moderate Local Non-Major
State Gas Income Transportation Solid City Hall Equipment Governmental
Tax Housing Transit Waste Building Replacement Funds
$ 480
182,758
$ 14,198 $ 43,830 $ 1,362 $ 10,571 $ 8,141 $ 5,084 224,233
4,877 40,004 10,632 130 58,237
723,607 421,608 2,574,605
1,983,726
257,127 257,127
1,889,655
21,611 172,264
742,682 65,441 462,974 278,330 8,271 5,084 7,343,085
97,185
940,674
836,808 236,889 453,884 253,578 2,103,598
1,207,610
42,426 436,018 9,090 102,370 29,045 4,661,507
879,234 672,907 462,974 253,578 102,370 29,045 9,010,574
(136,552) (607,466) 24,752 (94,099) (23,961) (1,667,489)
852,313 1,610,571
(70,854) (152,542) (761,241)
(70,854) 699,771 849,330
(207,406) 92,305 24,752 (94,099) (23,961) (818,159)
1,180,167 2,276,767 771,427 623,528 391,650 13,838,562
$ 972,761 $2,369,072 $ - $ 796,179 $ 529,429 $ 367,689 $ 13,020,403
68
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
TRAFFIC SAFETY SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Fines and forfeitures $ 120,000 $ 120,000 $ 182,758 $ 62,758
Use of money and property 7,000 7,000 5,603 (1,397)
Other revenue 100 100 (100)
Total Revenues 127,100 127,100 188,361 61,261
EXPENDITURES
Current:
Public safety 141,320 141,320 132,850 8,470
Net Change in Fund Balance (14,220) (14,220) 55,511 69,731
Fund Balance,Beginning of Year 341,004 341,004 415,673 74,669
Fund Balance,End of Year $ 326,784 $ 326,784 $471,184 $ 144,400
69
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
PARK DEVELOPMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 72,172 $ 72,172 $ 72,224 $ 52
Development fees 1,177,499 1,753,120 1,889,655 136,535
Other revenue 374 374
Total Revenues 1,249,671 1,825,292 1,962,253 136,961
EXPENDITURES
Capital outlay 618,908 1,933,833 1,621,677 312,156
Excess(Deficiency) of Revenues
Over(Under)Expenditures 630,763 (108,541) 340,576 449,117
OTHER FINANCING USES
Transfers out (521,104) (521,104) (521,104)
Net Change in Fund Balances 109,659 (629,645) (180,528) 449,117
Fund Balance,Beginning of Year 1,930,866 1,930,866 2,952,393 1,021,527
Fund Balance, End of Year $2,040,525 $1,301,221 $2,771,865 $ 1,470,644
70
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
AFFORDABLE HOUSING SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 13,312 $ 13,312 $ 8,659 $ (4,653)
Other revenue 149,808 149,808
Total Revenues 13,312 13,312 158,467 145,155
EXPENDITURES
Current:
Public services 184,759 453,747 322,439 131,308
Excess (Deficiency)of Revenues
Over(Under)Expenditures (171,447) (440,435) (163,972) 276,463
OTHER FINANCING USES
Transfers out (16,741) (16,741) (16,741)
Net Change in Fund Balance (188,188) (457,176) (180,713) 276,463
Fund Balance, Beginning of Year 625,999 625,999 689,415 63,416
Fund Balance, End of Year $ 437,811 $ 168,823 $ 508,702 $ 339,879
71
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
ASSESSMENT DISTRICT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 480 $ 480
Use of money and property $ 22,504 $ 22,504 26,885 4,381
Charges for services 2,594 2,594
Maintenance assessments 1,697,398 1,768,334 1,983,726 215,392
Other revenue 471 471
Total Revenues 1,719,902 1,790,838 2,014,156 223,318
EXPENDITURES
Current:
Public safety 986,351 986,351 688,909 297,442
Public services 167,358 1,271,351 1,271,351
Parks and recreation 1,352,939 1,352,939 1,207,610 145,329
Capital outlay 302,595 302,595 211,770 90,825
Total Expenditures 2,809,243 3,913,236 2,108,289 1,804,947
Excess(Deficiency)of Revenues
Over(Under)Expenditures (1,089,341) (2,122,398) (94,133) 2,028,265
OTHER FINANCING SOURCES
Transfers in 756,904 756,904 758,258 1,354
Net Change in Fund Balance (332,437) (1,365,494) 664,125 2,029,619
Fund Balance,Beginning of Year 1,976,210 1,976,210 1,635,285 (340,925)
Fund Balance, End of Year $1,643,773 $ 610,716 $2,299,410 $ 1,688,694
72
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
STATE AND FEDERAL ASSISTANCE SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original _ Final Amounts (Negative)
REVENUES
Use of money and property $ 64,812 $ 64,812 $ 27,676 $ (37,136)
Intergovernmental 2,265,936 2,265,936 1,429,390 (836,546)
Total Revenues 2,330,748 2,330,748 1,457,066 (873,682)
EXPENDITURES
Current:
General government 30,043 30,043 97,185 (67,142)
Public safety 180,433 180,433 118,915 61,518
Capital outlay 4,220,283 4,335,028 2,209,111 2,125,917
Total Expenditures 4,430,759 4,545,504 2,425,211 2,120,293
Net Change in Fund Balance (2,100,011) (2,214,756) (968,145) 1,246,611
Fund Balance, Beginning of Year 2,945,643 2,945,643 2,902,257 (43,386)
Fund Balance,End of Year $ 845,632 $ 730,887 $1,934,112 $ 1,203,225
73
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
STATE GAS TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 32,000 $ 32,000 $ 14,198 $ (17,802)
Charges for services 4,877 4,877
Intergovernmental 581,000 581,000 723,607 142,607
Total Revenues 613,000 613,000 742,682 129,682
EXPENDITURES
Current:
Public services 1,177,236 1,667,135 836,808 830,327
Capital outlay 88,115 88,115 _ 42,426 45,689
Total Expenditures 1,265,351 1,755,250 879,234 876,016
Excess (Deficiency) of Revenues
Over(Under)Expenditures (652,351) (1,142,250) (136,552) 1,005,698
OTHER FINANCING USES
Transfers out (70,854) (70,854) (70,854)
Net Change in Fund Balance (723,205) (1,213,104) (207,406) 1,005,698
Fund Balance,Beginning of Year 1,026,260 1,026,260 1,180,167 153,907
Fund Balance,End of Year $ 303,055 $ (186,844) $972,761 $ 1,159,605
74
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
LOW AND MODERATE INCOME HOUSING SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 130,020 $ 130,020 $ 43,830 $ (86,190)
Other revenue 2,500 2,500 21,611 19,111
Total Revenues 132,520 132,520 65,441 (67,079)
EXPENDITURES
Current:
Public services 80,000 115,806 236,889 (121,083)
Capital outlay 831,112 2,173,862 436,018 1,737,844
Total Expenditures 911,112 2,289,668 672,907 1,616,761
Excess (Deficiency)of Revenues
Over(Under)Expenditures (778,592) (2,157,148) (607,466) . 1,549,682
OTHER FINANCING SOURCES (USES)
Transfers in 726,239 742,980 852,313 109,333
Transfers out (152,542) (152,542) (152,542)
Total Other Financing Sources(Uses) 573,697 590,438 699,771 109,333
Net Change in Fund Balance (204,895) (1,566,710) 92,305 1,659,015
Fund Balance,Beginning of Year 2,276,767 2,276,767 2,276,767
Fund Balance, End of Year $2,071,872 $ 710,057 $2,369,072 $ 1,659,015
75
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
LOCAL TRANSPORTATION TRANSIT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 1,362 $ 1,362
Charges for services 40,004 40,004
Intergovernmental $ 567,500 $ 635,500 421,608 (213,892)
Total Revenues 567,500 635,500 462,974 (172,526)
EXPENDITURES
Current:
Public services 626,168 701,971 453,884 248,087
Capital outlay 9,090 (9,090)
Total Expenditures 626,168 701,971 462,974 238,997
Excess (Deficiency) of Revenues
Over(Under)Expenditures (58,668) (66,471) 66,471
OTHER FINANCING SOURCES
Transfers in 426,000 426,000 (426,000)
Net Change in Fund Balance 367,332 359,529 (359,529)
Fund Balance, Beginning of Year
Fund Balance, End of Year $ 367,332 $ 359,529 $ - $ (359,529)
76
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
SOLID WASTE SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 16,224 $ 16,224 $ 10,571 $ (5,653)
Charges for services 9,712 9,712 10,632 920
Intergovernmental 10,188 10,188 (10,188)
Utility franchise fees 220,000 220,000 257,127 37,127
Total Revenues 256,124 256,124 278,330 22,206
EXPENDITURES
Current:
Public services 301,718 302,168 253,578 48,590
Net Change in Fund Balance (45,594) (46,044) 24,752 70,796
Fund Balance,Beginning of Year 797,744 797,744 771,427 (26,317)
Fund Balance, End of Year $ 752,150 $ 751,700 $ 796,179 $ 44,479
77
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
CITY HALL BUILDING CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30,2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 12,792 $ 12,792 $ 8,141 $ (4,651)
Charges for services 130 130
Total Revenues 12,792 12,792 8,271 (4,521)
EXPENDITURES
Capital outlay 1,691,000 1,686,500 102,370 1,584,130
Excess(Deficiency) of Revenues
Over(Under)Expenditures (1,678,208) (1,673,708) (94,099) 1,579,609
OTHER FINANCING SOURCES
Transfers in 1,100,000 1,100,000 (1,100,000)
Net Change in Fund Balances (578,208) (573,708) (94,099) 479,609
Fund Balance,Beginning of Year 628,114 628,114 623,528 (4,586)
Fund Balance,End of Year $ 49,906 $ 54,406 $ 529,429 $ 475,023
78
CITY OF MOORPARK
SCHEDULE OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
EQUIPMENT REPLACEMENT CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2004
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 8,840 $ 8,840 $ 5,084 $ (3,756)
EXPENDITURES
Capital outlay 34,876 34,876 29,045 5,831
Net Change in Fund Balance (26,036) (26,036) (23,961) 2,075
Fund Balance,Beginning of Year 399,252 399,252 391,650 (7,602)
Fund Balance, End of Year $ 373,216 $ 373,216 $ 367,689 $ (5,527)
79
CITY OF MOORPARK
STATEMENT OF CHANGES IN NET ASSETS
AGENCY FUND
FOR THE YEAR ENDED JUNE 30,2004
Balance Balance
July 1, 2003 Additions Reductions June 30, 2004
ASSETS
Cash and investments $ 1,951,128 $ 277,028 $ (107,744) $ 2,120,412
LIABILITIES
Accounts payable $ 107,744 $ 406,309 $ (107,744) $ 406,309
Developer deposits 1,843,384 (129,281) 1,714,103
Total Liabilities $ 1,951,128 $ 406,309 $ (237,025) $ 2,120,412
80
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STATISTICAL SECTION
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CITY OF MOORPARK
REVENUES BY SOURCE
ALL GOVERNMENTAL FUND TYPES
LAST TEN FISCAL YEARS
Taxes and Licenses Revenue Use of
Fiscal Assessments Permits and From Other Maintenance Money& Other Total
Year (See Note 1) Fees Agencies Assessments Property Revenue Revenue
1995 4,390,156 2,501,078 789,852 940,377 1,314,740 1,157,615 11,093,818
1996 4,282,265 2,672,673 1,021,458 2,991,121 2,320,057 1,746,631 15,034,205
1997 6,349,631 4,693,256 1,373,726 1,641,622 1,984,162 493,938 16,536,335
' 1998 4,879,322 4,587,138 1,170,287 1,630,996 1,988,731 623,362 14,879,836
1999 5,486,444 4,033,723 849,089 3,856,911 2,691,285 709,444 17,626,896
2000 6,099,037 4,377,998 4,325,305 3,197,752 2,384,356 946,795 21,331,243
2001 7,036,031 6,954,690 1,688,714 6,385,546 2,987,920 1,337,640 26,390,541
2002 7,162,650 6,352,828 2,102,594 5,076,057 2,208,850 2,191,685 25,094,664
2003 8,490,985 7,510,604 4,051,263 2,955,340 2,027,190 1,414,161 26,449,543
2004 9,870,955 7,628,347 4,298,009 2,639,628 1,363,006 2,589,938 28,389,883
Governmental Fund types include General Fund and all Special Revenue, Debt Service, and Capital Project
Funds.
NOTE 1: 1991 was the first year the Redevelopment Agency received tax increment. In 1992, the County of
Ventura impounded tax increment for the Redevelopment Agency and then released it in 1993.
Source: City of Moorpark
81
CITY OF MOORPARK
EXPENDITURES BY FUNCTION
ALL GOVERNMENTAL FUND TYPES
LAST TEN FISCAL YEARS
Fiscal General Public Public Parks& Capital Debt
Year Government Safety Services Recreation Outlay Service Total
1995 1,332,372 2,518,495 2,457,737 1,175,997 2,342,077 1,694,708 11,521,386
1996 1,530,824 2,618,063 2,533,477 1,263,862 5,740,952 2,582,130 16,269,308
1997 1,386,598 2,807,382 3,960,313 1,336,029 3,452,115 1,125,199 14,067,636
1998 1,631,787 3,026,724 3,599,360 1,381,058 1,081,814 1,268,704 11,989,447
1999 1,993,878 3,102,834 3,148,264 1,385,376 1,965,474 4,156,354 15,752,180
2000 1,168,049 3,476,781 5,070,009 1,383,146 5,355,271 3,564,305 20,017,561
2001 1,601,638 3,830,253 5,035,651 1,851,648 6,888,258 2,767,770 21,975,218
2002 1,809,125 3,905,096 6,962,490 1,921,588 4,789,732 1,125,529 20,513,560
2003 2,048,658 4,127,670 8,704,302 2,063,428 3,596,982 1,409,915 21,950,955
2004 2,259,017 4,882,547 8,401,453 2,381,698 8,775,159 1,495,996 28,195,870
Governmental Fund Types include General Fund and all Special Revenue, Debt Service, and Capital Projects
Funds.
Source: City of Moorpark
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CITY OF MOORPARK
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Total
Fiscal Net Secured Net Unsecured Net Assessed Percent Homeowner's
Year Roll Roll Roll Change Exemptions
1995 1,732,877,452 56,810,214 1,789,687,666 3.4% 36,000,192
1996 1,784,220,963 63,819,253 1,848,040,216 3.3% 37,421,267
1997 1,848,655,764 68,944,812 1,917,600,576 3.8% 38,289,239
1998 1,920,177,164 70,911,851 1,991,089,015 3.8% 39,313,581
1999 2,035,487,530 85,464,519 2,120,952,049 10.6% 40,240,720
2000 2,149,505,500 84,834,286 2,234,339,786 12.2% 40,687,060
2001 2,421,104,221 92,634,149 2,513,738,370 18.5% 40,786,802
2002 2,549,782,519 94,204,773 2,643,987,292 18.3% 41,025,922
2003 2,823,727,286 120,175,258 2,943,902,544 17.1% 42,238,926
2004 3,026,137,647 155,943,246 3,182,080,893 20.4% 43,185,512
Source: Ventura County Assessor
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CITY OF MOORPARK
SECURED TAX CHARGE AND DELINQUENCIES
MOST RECENT TEN YEAR HISTORY
Amount Percent
Fiscal Secured Delinquent Delinquent
Year Tax Charge June 30 June 30
1998 1,191,918 21,807 1.8%
1999 1,374,741 25,687 1.9%
2000 1,410,082 25,054 1.8%
2001 1,573,688 67,292 4.3%
2002 1,832,673 29,778 1.6%
2003 2,036,839 27,584 1.4%
2004 2,391,927 27,811 1.2%
Source: California Municipal Statistics, Inc.
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CITY OF MOORPARK
DIRECT AND OVERLAPPING BONDED DEBT
AS OF FISCAL YEAR 2003-2004*
2003-2004 Assessed Valuation: $ 3,226,291,115
Redevelopment Incremental Valuation: 377,775,608
Adjusted Assessed Valuation: $ 2,848,515,507
Percent Debt
Direct and Overlapping Tax and Assessment Debt: Applicable as 6/30/04
Metropolitan Water District 0.233% $ 1,042,617
Ventura Community College District 4.311% 3,349,647
Conejo Valley Unified School District 0.024% 14,810
Moorpark Unified School District 91.959% 20,305,169
City of Moorpark 100.000% 0
City of Moorpark Community Facilities District No. 97-1 100.000% 7,055,000
City of Moorpark 1915 Act Bonds 100.000% 1,770,000
Total Direct and Overlapping Tax& Assessment Debt $ 33,537,243
Overlapping General Fund Obligation Debt:
Ventura County General Fund Obligations 4.310% $ 4,586,056
Ventura County Pension Obligations 4.310% 3,166,557
Ventura County Superintendent of Schools Certificates of Participation 4.310% 597,151
Ventura County Community College District COPS 4.311% 348,113
Moorpark USD Certificates of Participation 91.959% 3,958,835
Total Overlapping General Fund Obligation Debt $ 12,656,712
Combined Total Debt* $ 46,193,955
Ratios to 2003-2004 Assessed Valuation:
Direct Debt 0.00%
Total Direct and Overlapping Tax&Assessment Debt 1.04%
Ratio to Adjusted Assessed Valuation
Combined Total Debt 1.62%
State School Building Aid Repayable as of 6/30/04 0
* Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds, and non-
bonded capital lease obligations.
Source: California Municipal Statistics, Inc.
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CITY OF MOORPARK
COMPUTATION OF LEGAL DEBT MARGIN AND
BREAKDOWN OF GENERAL PROPERTY TAX LEVY
Legal Debt Margin as of June 30,2004
Assessed Valuation:
Secured property assessed value: $ 2,823,727,286
Bonded Debt Limit(15%of Assessed Value) $ 423,559,093
Amount of Debt Subject to Debt Limit
Total Bonded Debt $ 19,695,000
Less CRA Tax Allocation Bonds 19,695,000
Amount of Debt Subject to Debt Limit: $ -
Breakdown of General Property Tax Levy
In accordance with the California State Constitution as amended by Proposition 13
in 1978, property taxes are limited to$1 per$100 of valuation unless additional
levies are approved by the general electorate. Most local public agencies receive
a share of the"general levy" ($1 per$100 of valuation) in accordance with State
statutes. The following is a breakdown of the proportional shares of the"General Levy":
Moorpark Unified School District 33.50%
County of Ventura General Fund 17.20%
Fire Protection District 15.10%
E.R.A.F 93-94 Shift 8.80%
City of Moorpark 7.40%
Education Revenue Augmentation 5.50%
Ventura Community College 5.80%
Ventura Co. Superintendent of Schools 2.60%
County Library 1.67%
County Flood Zone#3 1.26%
Calleguas Municipal Water 0.90%
Ventura County Flood Control Admin 0.26%
Ventura College Child Care 0.03%
Total 100.00%
Source: City of Moorpark, Ventura County Assessor, and HdL Coren&Cone
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CITY OF MOORPARK
CITY POPULATION
LAST TEN YEARS
Percent
Year Population Change
1995 27,099 -0.3%
1996 27,752 2.4%
1997 28,377 2.3%
1998 29,300 3.3%
1999 29,589 1.0%
2000 29,727 0.5%
2001 32,150 8.2%
2002 33,760 5.0%
2003 34,529 2.3%
2004 34,933 1.2%
Source: City of Moorpark and State Department of Finance
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CITY OF MOORPARK
BUILDING PERMIT VALUATION
LAST TEN FISCAL YEARS
Number Number
Fiscal Residential of Commercial of Total Permit
Year Valuation Permits Valuation Permits Valuation
1995 55,828,983 250 2,575,542 37 58,404,525
1996 45,807,776 443 6,869,232 65 52,677,008
1997 24,274,609 364 27,460,489 85 51,735,098
1998 6,331,779 258 18,950,107 131 25,281,886
1999 3,112,703 213 6,538,260 90 9,650,963
2000 45,298,666 386 9,786,014 59 55,084,680
2001 76,864,038 581 7,046,028 69 83,910,066
2002 76,284,366 667 4,058,411 101 80,342,777
2003 77,147,429 1,570 44,831,413 316 121,978,843
2004 47,957,391 1,024 7,036,134 152 54,993,525
Source: City of Moorpark
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CITY OF MOORPARK
'�tr LARGEST PROPERTY OWNERS
PER ASSESSED VALUATION 2003
Assessed
Value of
Property Owner Property
Autosafe Airbag Limited Partnership $ 75,562,789
Toll California Limited Partnership 45,749,526
Kavlico Corporation 26,728,100
Zelman Moorpark LLC 24,047,542
G S Partnership 19,363,532
Mission Bell Plaza Phase I&II 19,269,089
Calabasas BCD Inc. 18,568,249
James Birkenshaw, Et Al 18,200,526
Majestic Court Properties LLC 17,810,338
Capital Pacific Security Trust 15,146,318
Source: Hdl Coren&Cone and Ventura County Assessor
89
CITY OF MOORPARK
MISCELLANEOUS STATISTICS
Year of Incorporation: 1983 Parks&Recreation:
Number of Parks 15
Form of Government: Council-Manager Park Acreage 160 acres
General Law City
Most Recent Population Estimate: 34,933 Education(Number of Schools):
High Schools 3
Registered Voters: 16,750 Middle Schools 2
Elementary Schools 6
City Employees: 102
Number of Community Facilities
Fire Protection: City Civic Buildings 1
Number of Stations: 2 Libraries 1
Number of Firefighters: 7 Community Centers 2
Senior Centers 1
Police Protection: Gym 1
Number of Stations: 1 Activity Rooms for Rentals 4
Number of Police Officers: 21
Number of Support Personnel: 2
90