Loading...
HomeMy WebLinkAboutACFR 2003 CITY OF MOORPARK, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2003 Prepared By: Administrative Services Department INTRODUCTORY SECTION CITY OF MOORPARK COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30,2003 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 13 Statement of Activities 14 Fund Financial Statements Governmental Funds Balance Sheet 15 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 17 Statement of Revenues, Expenditures,and Changes in Fund Balances 18 Reconciliation of the Statement of Revenues,Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 20 General Fund Statement of Revenues, Expenditures,and Changes in Fund Balance -Budget and Actual 21 Street and Traffic Safety Development Special Revenue Fund Statement of Revenues, Expenditures,and Changes in Fund Balance -Budget and Actual 22 Park 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 30,2003 TABLE OF CONTENTS (Continued) State and Federal Assistance Special Revenue Fund Statement of Revenues, Expenditures,and Changes in Fund Balance -Budget and Actual 27 Agency Fund Statement of Fiduciary Net Assets 28 Notes to the Financial Statements 29 Supplementary Schedules Major Fund Budgetary Comparison Schedules Schedule of Revenues,Expenditures, and Changes in Fund Balances -Budget and Actual Redevelopment Agency Capital Projects Fund 58 Redevelopment Agency Debt Service Fund 59 Non-Major Governmental Funds Combining Balance Sheet 60 Combining Statement of Revenues,Expenditures, and Changes in Fund Balances 62 Schedule of Revenues,Expenditures, and Changes in Fund Balances -Budget and Actual—Special Revenue Funds Traffic Safety 64 Affordable Housing 65 Assessment District 66 State Gas Tax 67 Low and Moderate Income Housing 68 Local Transportation Transit 69 Solid Waste 70 Schedule of Revenues,Expenditures, and Changes in Fund Balances -Budget and Actual—Capital Projects Funds City Hall Building 71 Police Facilities Fee Fund 72 Equipment Replacement 73 Agency Fund Statement of Changes in Net Assets 74 ii CITY OF MOORPARK COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30,2003 TABLE OF CONTENTS (Continued) STATISTICAL SECTION(Unaudited): Revenues by Source—All Governmental Fund Types—Last Ten Fiscal Years 75 Expenditures by Function—All Governmental Fund Types—Last Ten Fiscal Years 76 Assessed Value of Taxable Property—Last Ten Fiscal Years 77 Secured Tax Charge and Delinquencies—Most Recent Ten Year History 78 Direct and Overlapping Bonded Debt as of Fiscal Year 2002-2003 79 Computation of Legal Debt Margin and Breakdown of General Property Tax Levy 80 City Population—Last Ten Years 81 Building Permit Valuation—Last Ten Fiscal Years 82 Largest Property Owners—Per Assessed Valuation 2003 83 Miscellaneous Statistics 84 iii This page left blank intentionally. City of Moorpark 4441110, WV 1 0 R1 rho .0.) DIRECTORY OF CITY OFFICIALS CITY COUNCIL Patrick Hunter, Mayor Keith Millhouse, Mayor pro Tem Clint Harper Janice Parvin Roseann Mikos CITY MANAGEMENT STAFF Steven Kueny, City Manager Hugh Riley, Assistant City Manager Cynthia Borchard, Administrative Services Director Ken Gilbert, Public Works Director Barry Hogan, Community Development Director Mary Lindley, Community Services Director Deborah Traffenstedt, ATCM/City Clerk iv CITY OF MOORPARK ORGANIZATION CHART HONORABLE CITY COUNCIL PLANNING PARKS & RECREATION COMMISSION COMMISSION CITY MANAGER City Attorney Assistant City (Contract) Manager • Redevelopment • Grants/CDBG Police Services Economic Development • Emergency Services (Contract) Property Management • Public Information/ Housing Cable TV • Intergovernmental Community & Legislative Relations City Clerk/ Community Community Public Works Administrative ATOM Services Development Services • Human Resources • Parks/Landscape • Planning • Street Maintenance • Finance & Accounting • Risk Management Maintenance • Code Compliance • Crossing Guards • Central Services • Recreation • • ParkingEnforcement • Information Systems • Public RecordsBuilding & Safety • Elections • Animal Regulation/ • City Engineer • Assmt.District Vector Control (Contract) Street Lighting • Transit • NPDES • Solid Waste • Capital Projects • Library V FINANCIAL SECTION This page left blank intentionally. 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, and the remaining funds of the City of Moorpark, California(the City), as of and for the year ended June 30, 2003,which collectively comprise the City of Moorpark's basic financial statements as listed in the table of contents. These fmancial 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 remaining funds of the City of Moorpark, California, as of June 30, 2003, and the respective changes in financial 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 12,2003, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws,regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. As discussed in Note#1 to the basic financial statements, the City adopted Governmental Accounting Standards Board (GASB) Statements No. 34, Basic Financial Statements and Management Discussion and Analysis for State and Local Governments, No. 37, Basic Financial Statements and Management Discussion and Analysis for State and Local Governments: Omnibus, No. 38, Certain Financial Statement Note Disclosures, and No. 41, Budgetary Comparison Schedules—Perspective Differences,effective July 1,2001. 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 required supplementary information, such as management's discussion and analysis, is not a required part of the basic financial statements, but is supplementary information required by the Governmental Accounting Standards Board. 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 other supplementary information listed in the table of contents, including additional budgetary comparison schedules, are presented for purposes of additional analysis and are not a required part of the basic financial statements. These 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. va ;(Z ��. � , 1 ` 6:3*, LLP Rancho Cucamonga, California December 12,2003 2 MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Moorpark, California (the City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City (the "Primary Government") for the fiscal year ended June 30, 2003. It is encouraged that the readers consider the information presented here in conjunction with the accompanying basic financial statements. Since this is the first year of GASB 34 reporting, there will be limited analysis of the financial results based on prior year comparatives. FINANCIAL HIGHLIGHTS • The assets of the City exceeded its liabilities at the close of the 2003 fiscal year by$159,106,739 (net assets). Of this amount, $33,792,567(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 $9,485,228 during the current fiscal year. Details are discussed on page 13. • As of June 30, 2003,the City's governmental funds(General Fund, Special Revenue Funds, Debt Service Fund, and Capital Project Funds) reported combined ending fund balances of $67,366,813, an increase of $4,437,851 from the prior year. Of this amount, $62,988,748, or approximately 94% of the total fund balances are unreserved fund balance (i.e. the City Council has not designated specific uses). • At the end of the current fiscal year, unreserved fund balance for the General Fund was $13,456,231,or 183%of total General Fund expenditures. • The City's total long-term liabilities decreased by $321,046 or 1.5% during the current fiscal year. The decrease is attributable to the difference between debt additions and the fiscal year's regularly scheduled debt service payments. • The City adopted Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements and Management's- Discussion and Analysis — for State and Local Governments(GASB 34), effective July 1, 2001. Adjustments to governmental funds beginning fund balance for the Redevelopment Agency for adoption of GASB 34 were as follows(see Note#13 to the basic financial statements): ✓ Removed long-term receivables in the Low/Mod Housing Special Revenue Fund ($911,237), Areas of Contribution Fund ($133,670), and the Capital Project Fund ($3,274,576). • The City also adopted the following GASB statements as part of adoption of the new reporting model: ✓ Statement No. 37, Basic Financial Statements and Management's Discussion and Analysis—for State and Local Governments: Omnibus. ✓ Statement No. 38, Certain Financial Statement Note Disclosures. ✓ Statement No. 41, Budgetary Comparison Schedules — Perspective Differences, an amendment of GASB 34. No adjustments were necessary as a result of adoption of these additional standards. 3 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, and 3) notes to basic financial statements. Other supplementary information is included in addition to the basic financial statements. Government-Wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. The government-wide financial statements include the statement of net assets and the statement of activities. The governmental activities of the City include general government, public safety, public services, parks and recreation, and debt service interest on long-term 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 (e.g., 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 (the Agency) and Moorpark Public Financing Authority (the 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 13-14 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. 4 Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 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, the Moorpark Redevelopment Agency(MRA), Street and Traffic Safety Development, Park Development, Community Development, Areas of Contribution, Endowment, and State and Federal Assistance, all of which are considered to be major funds. Data from the remaining 10 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 major 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 28 of this report. Notes to the Basic Financial Statements. The notes to the basic fmancial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 29-56 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS This is the first year that the City has presented its financial statements under the new reporting model required by GASB 34. Because this reporting model changes significantly both the recording and presentation of financial data, the City has not restated the prior fiscal year for the purposes of providing comparative information for the Management's Discussion and Analysis(MD&A). In future years, when prior year information is available, a comparative analysis of government-wide data will be 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$159 million at the close of the current fiscal year. 5 The City's investment in capital assets, net of related debt, reflects a positive $85,969,804. As shown on Table 1, the largest portion of the City's net assets (54%) 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. 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 (21%) 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, 2003, 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 June 30,2003 Governmental Activities ASSETS Current and other assets $77,473,209 Capital assets 106,069,804 Total Assets 183,543,013 LIABILITIES Current and other liabilities 4,016,029 Long-term liabilities 20,420,245 Total Liabilities 24,436,274 NET ASSETS Invested in capital assets,net of related debt 85,969,804 Restricted 39,344,368 Unrestricted 33,792,567 Total Net Assets $159,106,739 The City's net assets increased by$9,485,228 during the current fiscal year. 6 Table 2 Changes in Net Assets June 30,2003 Governmental Activities REVENUES Program Revenues: Charges for services $3,706,733 Operating contributions and grants 5,440,099 Capital contributions and grants 4,131,439 General Revenues: Tax increment 3,577,050 Property taxes 2,413,964 Franchise taxes 1,067,669 Sales taxes 1,664,626 Motor vehicle in lieu tax 2,161,324 Investment income 2,027,190 Other 21,479 Total Revenues 26,211,573 EXPENSES General government 2,116,644 Public safety 4,142,268 Public services 7,150,513 Parks and recreation 2,276,066 Interest on long-term debt 1,040,854 Total Expenses 16,726,345 INCREASE IN NET ASSETS 9,485,228 Net Assets-7/01/02 149,621,511 Net Assets -6/30/03 $159,106,739 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. 7 As of the end of the current fiscal year, the City's governmental funds reported total fund balances of $67,366,813, a 7% or $4,437,851 increase in comparison with the prior year. Approximately 94%, or $62,988,748, 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 $13.5 million, which was $1.7 million or 14%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 183%of total General Fund expenditures. Key factors in this growth are as follows: • Property tax increased by$240,367(11%) • Capital outlay expenditures decreased by$182,496(78%) • Motor vehicle in lieu fees increased by$206,376(11%) Street and Traffic Safety Fund The fund balance of the Street and Traffic Safety Fund increased by $1,922,811 from the prior year, primarily due to the receipt of development fees for various construction projects; including the Moorpark Marketplace. Park Development Fund The fund balance of the Park Development Fund increased by$154,458 from the prior year,primarily due to the receipt of development fees for the Vintage Crest Apartments project. Community Development Fund The fund balance of the Community Development Fund increased by $219,860 from the prior year, primarily due to a transfer in from the General Fund. Areas of Contribution Fund The fund balance of the Areas of Contribution Fund increased by$408,507 from the prior year,primarily due to a reduction in capital improvement expenditures. Endowment Fund The fund balance of the Endowment Fund increased by $1,127,122 from the prior year, primarily due to the receipt of development fees for the Vintage Crest Apartments and the Moorpark Country Club project. State and Federal Assistance Fund The fund balance of the State and Federal Assistance Fund increased by$2,468 from the prior year. 8 RDA Capital Projects Fund The fund balance of the Redevelopment Agency Capital Projects Fund decreased by $361,074 from the prior year, primarily due to capital project expenditures including low and very low income housing projects. RDA Debt Service Fund The fund balance of the Redevelopment Agency Debt Service Fund decreased by $627,573, primarily resulting from transfers to the RDA capital project funds of tax increment revenue in excess of debt service requirements. All other governmental funds' fund balances decreased by$110,861 or 1%from the previous fiscal year. 9 This page left blank intentionally. General Fund Budgetary Highlights The following Table 3 presents a summary analysis of the General Fund budget and actuals for the current fiscal year: Table 3 Summary Analysis of General Fund Budget Fiscal Year 2002-2003 Variance Budget Amounts Actual Positive Category Adopted Final (budget basis) (Negative) REVENUES Taxes $4,649,953 $4,424,983 $4,913,935 $488,952 Licenses and permits 40,100 40,100 51,083 10,983 Fines and forfeitures 83,500 83,500 116,241 32,741 Use of money and property 370,037 370,037 407,915 37,878 Charges for services 801,455 1,026,425 832,973 (193,452) Intergovernmental 1,878,925 1,900,025 2,269,500 369,475 Other revenue 79,650 79,650 187,061 107,411 Total Revenues 7,903,620 7,924,720 8,778,708 853,988 EXPENDITURES General government 2,260,212 2,320,805 2,048,658 272,147 Public safety 4,002,157 4,194,140 3,903,315 290,825 Public services 200,010 661,215 497,953 163,262 Parks and recreation 1,797,550 2,215,959 847,974 1,367,985 Capital outlay 81,526 98,508 52,980 45,528 Total Expenditures 8,341,455 9,490,627 7,350,880 2,139,747 Total Excess(Deficiency) of Revenues Over Expenditures (437,835) (1,565,907) 1,427,828 2,993,735 Other Financing Sources(Uses) Transfers in 959,668 959,668 907,928 (51,740) Transfers out (699,766) (906,744) (633,623) 273,121 Total Other Financing Sources(Uses) 259,902 52,924 274,305 221,381 i Net Change in Fund Balance $(177,933) $(1,512,983) $1,702,133 $3,215,116 The City adopts annual appropriated operating budgets for its governmental funds(General Fund, Special Revenue Funds, Capital Project Funds, and Debt Service Fund) and reports the results of operation on a budget comparison basis. r 10 In preparing its budgets, the City attempts to estimate its revenues using realistic, but conservative, methods so as to budget its expenditure appropriations and activities in a prudent manner. As a result, the City Council adopts budget adjustments during the course of the fiscal year to reflect both changed priorities and availability of additional revenues to allow for expansion of existing programs. During the course of the year, the City Council amended the originally adopted budget to re-appropriate prior year approved projects and expenditures,as well as approving many other adjustments for the current year. The General Fund reflected a net total favorable budget variance of$3,215,116 when comparing actual amounts to the final budget for the current fiscal year. This positive budget variance reflects revenue realization greater than estimates $853,988 —mainly resulting from taxes and intergovernmental revenue — and expenditures considerably less than estimates $2,139,747 and the net transfers in/out is $221,381 less than budgeted. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets. The City's investment in capital assets as of June 30, 2003, amounted to $106,069,804 (net of accumulated depreciation). This investment, detailed in Table 4, includes land, buildings and improvements, machinery and equipment, and infrastructure. The total increase in the City's investment in capital assets for the current fiscal year was 4.7%. Table 4 Capital Assets(Net of Depreciation) June 30,2003 Governmental Activities Land $31,410,929 Buildings and improvements 6,729,818 Machinery and equipment 374,822 Infrastructure 67,554,235 Total $106,069,804 Some of the City's major capital asset purchases in the current fiscal year were: • The Transit Fund purchased two 25 passenger transit buses from Creative Bus Sales for $284,000. • In the Equipment Replacement Fund, the Community Service Department purchased a service truck for$25,000, and the Sheriffs Department purchased a motorcycle for$21,000. As a result of the implementation of GASB 34, the City is for the first time accounting 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 45 of this report. 11 Long-term Liabilities. At the end of the current fiscal year, long-term liabilities outstanding is $20,420,245. This amount was comprised of$20,100,000 of tax allocation bonds for the Redevelopment Agency, which are secured by future tax revenues, and the City's $320,245 in employee compensated absences payable. This is shown at Table 5. Table 5 Outstanding Long-term Liabilities June 30,2003 Governmental Activities Tax allocation bonds(issued by the Redevelopment Agency) $20,100,000 Employee Compensated Absences Payable 320,245 Total $20,420,245 The City of Moorpark's total long-term liabilities decreased by $321,046, or 1.5%, during the current fiscal year. The decrease is attributable to the difference between long-term liabilities additions and the fiscal year's regularly scheduled debt service payments. Additional information on the City's long-term liabilities can be found in Note#6 on pages 46-47 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). One of the State's historical ways of solving its budget crisis is to take local revenue for the State. Additionally, the City took into consideration the following factors in preparing the budget for the 2003- 2004 fiscal year: • Assessed property values continue to steadily increase. • Interest income realized by the City is budgeted to decrease due to falling interest rates. • Sales tax growth continues to increase as a result of new businesses. • Inflationary trends in the region compare favorably to national indices. • Increase in health insurance rates and Workers' Compensation rates. • The unemployment rate for the City as of June 2003 was 3.9%. This compares to the County rate of 5.2%and the State rate of 6.8%. 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, (805)517-6242 or at www.ci.moorpark.ca.us. 12 This page left blank intentionally. BASIC FINANCIAL STATEMENTS This page left blank intentionally. GOVERNMENT-WIDE FINANCIAL STATEMENTS This page left blank intentionally. CITY OF MOORPARK STATEMENT OF NET ASSETS JUNE 30,2003 Governmental Activities ASSETS Cash and investments $ 66,375,748 Receivables: Taxes 17,682 Accounts 1,014,013 Interest 454,328 Notes and loans 6,342,717 Other 63,745 Land held for resale 1,811,737 Cash and investments-restricted 1,393,239 Capital assets Non-depreciable: Land 31,410,929 Depreciable, net of accumulated depreciation: Buildings and improvements 6,729,818 Machinery and equipment 374,822 Infrastructure 67,554,235 Total Assets 183,543,013 LIABILITIES Accounts payable and accrued liabilities 3,583,961 Retentions payable 12,100 Interest payable 245,358 Deferred revenue 169,565 Deposits 5,045 Noncurrent liabilities: Due within one year 395,000 Due in more than one year 20,025,245 Total Liabilities 24,436,274 NET ASSETS Invested in capital assets,net of related debt 85,969,804 Restricted for: Community development 33,409,974 Recreation services 2,952,393 Public safety 415,673 Debt service 1,393,239 Housing set-aside 1,173,089 Unrestricted 33,792,567 Total Net Assets $ 159,106,739 See accompanying notes to financial statements. 13 CITY OF MOORPARK STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2003 Program Revenues Operating Capital Net Charges for Contributions Contributions Governmental Expenses Services and Grants and Grants Activities Governmental Activities: General government $ 2,116,644 $ 509,401 $ 101,839 $ (1,505,404) Public safety 4,142,268 708,392 459,767 $ 331,562 (2,642,547) Public services 7,150,513 2,166,168 4,878,493 2,330,725 2,224,873 Parks and recreation 2,276,066 322,772 1,469,152 (484,142) Debt service: Interest on long-term debt 1,040,854 (1,040,854) Total Governmental Activities $16,726,345 $ 3,706,733 $ 5,440,099 $ 4,131,439 (3,448,074) General Revenues: Taxes: Property tax, levied for general purpose 2,413,964 Property tax,Redevelopment Agency tax increment 3,577,050 Franchise tax 1,067,669 Sales tax 1,664,626 Motor vehicle in lieu tax 2,161,324 Investment income 2,027,190 Other 21,479 Total General Revenues 12,933,302 Change in Net Assets 9,485,228 Net Assets at Beginning of Year 149,621,511 Net Assets at End of Year $ 159,106,739 See accompanying notes to financial statements. 14 FUND FINANCIAL STATEMENTS This page left blank intentionally. This page left blank intentionally. CITY OF MOORPARK GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30,2003 Special Revenue Street and Traffic Safety Park Community ASSETS General Development Development Development Cash and investments $12,225,512 $ 9,252,382 $ 4,110,462 $ 810,491 Cash and investments-restricted Receivables: Taxes Accounts 589,987 1,294 Interest 235,622 Notes and loans 6,992 Other 63,745 Due from other funds 862,024 Land held for resale Total Assets $13,983,882 $ 9,252,382 $ 4,110,462 $ 811,785 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable and accrued liabilities $ 527,651 $ 343 $ 568,069 $ 463,726 Due to other funds 590,000 Retention payable 10,260 Deferred revenue Deposits,principally from developers Total Liabilities 527,651 10,603 1,158,069 463,726 FUND BALANCES Reserved for: Debt service Land held for resale Housing set-aside Unreserved, reported in: General fund 13,456,231 Special revenue funds 9,241,779 2,952,393 348,059 Capital projects funds Debt service fund Total Fund Balances 13,456,231 9,241,779 2,952,393 348,059 Total Liabilities and Fund Balances $13,983,882 $ 9,252,382 $ 4,110,462 $ 811,785 See accompanying notes to financial statements. 15 L Capital Debt Special Revenue Projects Service State and Non-Major Areas of Federal Redevelopment Redevelopment Governmental Contribution Endowment Assistance Agency Agency Funds Totals $7,789,638 $9,554,815 $3,288,428 $ 9,700,465 $ 1,010,376 $ 8,633,179 $66,375,748 1,393,239 1,393,239 17,682 17,682 33,174 975 45,221 343,362 1,014,013 122,940 74,598 18,508 2,660 454,328 6,992 63,745 63,009 10,155 935,188 990,662 821,075 1,811,737 $7,912,578 $9,554,815 $3,384,611 $ 10,766,700 $ 2,477,499 $ 9,817,958 $72,072,672 $ 52,541 $ 380,324 $ 29,517 $ 1,182,195 $ 379,595 $ 3,583,961 102,030 115,511 127,647 935,188 1,840 12,100 169,565 169,565 5,045 5,045 54,381 482,354 150,073 1,182,195 676,807 4,705,859 1,393,239 1,393,239 990,662 821,6675 1,811,737 1,173,089 1,173,089 13,456,231 7,858,197 $9,554,815 2,902,257 4,974,570 37,832,070 9,625,965 2,172,417 11,798,382 (97,935) (97,935) 7,858,197 9,554,815 2,902,257 10,616,627 1,295,304 9,141,151 67,366,813 $7,912,578 $9,554,815 $3,384,611 $ 10,766,700 $ 2,477,499 $ 9,817,958 $72,072,672 16 This page left blank intentionally. CITY OF MOORPARK GOVERNMENTAL FUNDS RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30,2003 Fund Balances of Governmental Funds $ 67,366,813 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. 106,069,804 Long-term notes and loans receivable are not current financial resources and, therefore, are not included in the governmental funds. 6,335,725 Interest expenditures are recognized when due, and therefore, interest payable is not recorded in the governmental funds. (245,358) Long-term liabilities are not due and payable in the current period and,therefore, are not reported in the governmental funds. (20,420,245) Net Assets of Governmental Activities $ 159,106,739 See accompanying notes to fmancial statements. 17 CITY OF MOORPARK GOVERNMENTAL FUNDS STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30,2003 Special Revenue Street and Traffic Safety Park Community General Development Development Development REVENUES Taxes $ 4,913,935 Licenses and permits 51,083 Fines and forfeitures 116,241 Use of money and property 407,915 $ 177,312 $ 64,456 Charges for services 832,973 780 Intergovernmental 2,269,500 Maintenance assessments Utility franchise fees Building and safety fees $ 608,879 Planning and public works fees 2,132,190 Development fees 2,013,816 1,469,152 Other revenue 187,061 16,219 Total Revenues 8,778,708 2,191,128 1,550,607 2,741,069 EXPENDITURES Current: General government 2,048,658 Public safety 3,903,315 Public services 497,953 168,317 71,754 2,813,420 Parks and recreation 847,974 Capital outlay 52,980 1,324,395 7,789 Debt service: Principal Interest Total Expenditures 7,350,880 168,317 1,396,149 2,821,209 Excess(Deficiency) of Revenues Over Expenditures 1,427,828 2,022,811 154,458 (80,140) OTHER FINANCING SOURCES (USES) Transfers in 907,928 300,000 Transfers out (633,623) (100,000) Total Other Financing Sources(Uses) 274,305 (100,000) 300,000 Net Change in Fund Balances 1,702,133 1,922,811 154,458 219,860 Fund Balances, Beginning of Year,as restated 11,754,098 7,318,968 2,797,935 128,199 Fund Balances,End of Year $13,456,231 $ 9,241,779 $ 2,952,393 $ 348,059 See accompanying notes to financial statements. 18 Capital Debt Special Revenue Projects Service State and Non-Major Areas of Federal Redevelopment Redevelopment Governmental Contribution Endowment Assistance Agency Agency Funds Total $ 3,577,050 $ 8,490,985 51,083 $ 173,813 290,054 $ 173,124 $ 149,250 $ 65,131 $ 608,120 117,425 264,457 2,027,190 620 1,220 32,138 867,731 761,981 1,019,782 4,051,263 648,338 2,307,002 2,955,340 232,324 232,324 608,879 2,132,190 1,003,160 4,486,128 9,829 43,267 256,376 822,082 1,152,410 828,332 617,949 3,694,475 4,072,783 26,449,543 2,048,658 118,688 105,667 4,127,670 207,488 73,841 901,403 1,182,196 2,848,667 8,765,039 1,215,454 2,063,428 206,087 579,985 804,084 621,662 3,596,982 365,000 365,000 1,044,915 1,044,915 413,575 772,514 1,705,487 2,592,111 4,791,450 22,011,692 408,507 1,152,410 55,818 (1,087,538) 1,102,364 (718,667) 4,437,851 6,000 1,165,053 152,225 1,250,732 3,781,938 (25,288) (59,350) (438,589) (1,882,162) (642,926) (3,781,938) (25,288) (53,350) 726,464 (1,729,937) 607,806 408,507 1,127,122 2,468 (361,074) (627,573) (110,861) 4,437,851 7,449,690 8,427,693 2,899,789 10,977,701 1,922,877 9,252,012 62,928,962 $7,858,197 $9,554,815 $2,902,257 $ 10,616,627 $ 1,295,304 $ 9,141,151 $67,366,813 19 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 30,2003 Net Change in Fund Balances-Total Governmental Funds $ 4,437,851 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 7,236,861 Depreciation expense (2,388,510) 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. (126,081) 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. 365,000 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. 4,061 Compensated absence expenses reported in the Statement of Activities do not require the use of current financial resources and,therefore, are not reported as expenditures in governmental funds. (43,954) Change in Net Assets of Governmental Activities $ 9,485,228 See accompanying notes to financial statements. 20 CITY OF MOORPARK STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED JUNE 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Taxes $ 4,649,953 $ 4,424,983 $ 4,913,935 $ 488,952 Licenses and permits 40,100 40,100 51,083 10,983 Fines and forfeitures 83,500 83,500 116,241 32,741 Use of money and property 370,037 370,037 407,915 37,878 Charges for services 801,455 1,026,425 832,973 (193,452) Intergovernmental 1,878,925 1,900,025 2,269,500 369,475 Other revenue 79,650 79,650 187,061 107,411 Total Revenues 7,903,620 7,924,720 8,778,708 853,988 EXPENDITURES Current: General government 2,260,212 2,320,805 2,048,658 272,147 Public safety 4,002,157 4,194,140 3,903,315 290,825 Public services 200,010 661,215 497,953 163,262 Parks and recreation 1,797,550 2,215,959 847,974 1,367,985 Capital outlay 81,526 98,508 52,980 45,528 Total Expenditures 8,341,455 9,490,627 7,350,880 2,139,747 Excess(Deficiency) of Revenues Over Expenditures (437,835) (1,565,907) 1,427,828 2,993,735 OTHER FINANCING SOURCES (USES) Transfers in 959,668 959,668 907,928 (51,740) Transfers out (699,766) (906,744) (633,623) 273,121 Total Other Financing Sources(Uses) 259,902 52,924 274,305 221,381 Net Change in Fund Balances (177,933) (1,512,983) 1,702,133 3,215,116 Fund Balance,Beginning of Year 11,754,098 11,754,098 11,754,098 Fund Balance,End of Year $11,576,165 $10,241,115 $13,456,231 $ 3,215,116 See accompanying notes to financial statements. 21 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 251,348 $ 251,348 $ 177,312 $ (74,036) Development fees 1,628,982 1,628,982 2,013,816 384,834 Total Revenues 1,880,330 1,880,330 2,191,128 310,798 EXPENDITURES Current: Public services 263,988 476,812 168,317 308,495 Total Expenditures 263,988 476,812 168,317 308,495 Excess (Deficiency) of Revenues Over Expenditures 1,616,342 1,403,518 2,022,811 619,293 OTHER FINANCING SOURCES (USES) Transfers out (100,000) (100,000) Total Other Financing Sources (Uses) (100,000) (100,000) Net Change in Fund Balances 1,616,342 1,303,518 1,922,811 619,293 Fund Balance,Beginning of Year 7,318,968 7,318,968 7,318,968 Fund Balance, End of Year $ 8,935,310 $ 8,622,486 $ 9,241,779 $ 619,293 See accompanying notes to financial statements. 22 CITY OF MOORPARK STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL PARK DEVELOPMENT SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 97,953 $ 97,953 $ 64,456 $ (33,497) Charges for services 780 780 Development fees 909,609 909,609 1,469,152 559,543 Other revenue 16,219 16,219 Total Revenues 1,007,562 1,007,562 1,550,607 543,045 EXPENDITURES Current: Public services 120,000 120,000 71,754 48,246 Capital outlay 2,193,301 3,011,501 1,324,395 1,687,106 Total Expenditures 2,313,301 3,131,501 1,396,149 1,735,352 Net Change in Fund Balances (1,305,739) (2,123,939) 154,458 2,278,397 Fund Balance,Beginning of Year 2,797,935 2,797,935 2,797,935 Fund Balance,End of Year $1,492,196 $ 673,996 $2,952,393 $ 2,278,397 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Building and safety fees $ 567,482 $ 567,482 $ 608,879 $ 41,397 Planning and public works fees 2,105,825 2,105,825 2,132,190 26,365 Total Revenues 2,673,307 2,673,307 2,741,069 67,762 EXPENDITURES Current: Public services 3,073,232 3,001,045 2,813,420 187,625 Capital outlay 7,900 8,000 7,789 211 Total Expenditures 3,081,132 3,009,045 2,821,209 187,836 Excess (Deficiency)of Revenues Over Expenditures (407,825) (335,738) (80,140) 255,598 OTHER FINANCING SOURCES (USES) Transfers in 300,000 300,000 Total Other Financing Sources(Uses) 300,000 300,000 Net Change in Fund Balances (407,825) (35,738) 219,860 255,598 Fund Balance,Beginning of Year 128,199 128,199 128,199 Fund Balance,End of Year $ (279,626) $ 92,461 $ 348,059 $ 255,598 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 228,466 $ 228,466 $ 173,124 $ (55,342) Charges for services 620 620 Maintenance assessments 1,341,671 1,341,671 648,338 (693,333) Total Revenues 1,570,137 1,570,137 822,082 (748,055) EXPENDITURES Current: Public services 5,923,815 5,897,873 207,488 5,690,385 Capital outlay 1,707,166 1,707,166 206,087 1,501,079 Total Expenditures 7,630,981 7,605,039 413,575 7,191,464 Net Change in Fund Balances (6,060,844) (6,034,902) 408,507 6,443,409 Fund Balance,Beginning of Year,as restated 7,449,690 7,449,690 7,449,690 Fund Balance, End of Year $1,388,846 $1,414,788 $7,858,197 $ 6,443,409 See accompanying notes to fmancial 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 239,768 $ 239,768 $ 149,250 $ (90,518) Development fees 1,439,868 1,439,868 1,003,160 (436,708) Total Revenues 1,679,636 1,679,636 1,152,410 (527,226) OTHER FINANCING SOURCES (USES) Transfers out (80,000) (80,000) (25,288) (54,712) Total Other Financing Sources (Uses) (80,000) (80,000) (25,288) (54,712) Net Change in Fund Balances 1,599,636 1,599,636 1,127,122 (472,514) Fund Balance, Beginning of Year 8,427,693 8,427,693 8,427,693 Fund Balance, End of Year $ 10,027,329 $10,027,329 $ 9,554,815 $ (472,514) See accompanying notes to financial statements. 26 CITY OF MOORPARK STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL STATE AND FEDERAL ASSISTANCE SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 89,085 $ 89,085 $ 65,131 $ (23,954) Charges for services 1,220 1,220 Intergovernmental 2,431,530 2,431,530 761,981 (1,669,549) Total Revenues 2,520,615 2,520,615 828,332 (1,692,283) EXPENDITURES Current: Public safety 120,058 118,688 1,370 Public services 213,367 191,900 73,841 118,059 Capital outlay 3,336,546 4,565,045 579,985 3,985,060 Total Expenditures 3,549,913 4,877,003 772,514 4,104,489 Excess(Deficiency)of Revenues Over Expenditures (1,029,298) (2,356,388) 55,818 2,412,206 OTHER FINANCING SOURCES (USES) Transfers in 6,000 6,000 6,000 Transfers out (59,350) (59,350) (59,350) Total Other Financing Sources(Uses) (53,350) (53,350) (53,350) Net Change in Fund Balances (1,082,648) (2,409,738) 2,468 2,412,206 Fund Balance,Beginning of Year 2,899,789 2,899,789 2,899,789 Fund Balance,End of Year $ 1,817,141 $ 490,051 $2,902,257 $ 2,412,206 See accompanying notes to financial statements. 27 CITY OF MOORPARK STATEMENT OF FIDUCIARY NET ASSETS AGENCY FUND JUNE 30,2003 ASSETS Cash and investments $ 1,951,128 Total Assets $ 1,951,128 LIABILITIES Accounts payable $ 107,744 Deposits 1,843,384 Total Liabilities $ 1,951,128 See accompanying notes to financial statements. 28 SItI 11 Ia1V LS 'IVIDNVMII 01 SalON This page left blank intentionally. CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 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 City has implemented GASB Statements No. 34, 37, 38, and 41 and these statements are presented according to those requirements. 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. 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. 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. 29 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#1–SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 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 fmancial information of the Authority has not been reproduced in this report, but is available from the Authority. B. 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. GASB Statements No.34 and 37-In June 1999 and in June 2001, the GASB issued Statement No. 34,Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments and Statement No. 37, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments — an amendment of GASB Statement No. 34. These statements introduce the requirements of Management's Discussion and Analysis (MD&A), cash flow statements presented using the direct method and the concept of net assets, classified on the basis of availability. The City has adopted these statements for its 2003 fmancial statements. Statement No. 34 requires the preparation of government-wide financial statements to be prepared using the accrual basis of accounting and the economic resources measurement focus. Significantly, the City's statement of net assets will include both non-current and current assets and liabilities, some of which were previously recorded in the General Fixed Asset Account Group and General Long-term Debt Account. 30 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,Continued In addition to the government-wide financial statements, the City has prepared fund financial statements, which continue to use the modified accrual basis of accounting and the current financial resources measurement focus. However, these statements have been reported using a major fund emphasis with the remainder of the funds combined into one column. GASB Statement No. 38 - In June 2001, the GASB issued Statement No. 38, Certain Financial Statement Note Disclosures. This statement modifies various note disclosure requirements concurrently with the implementation of Statement No. 34. While this statement does not affect amounts reported in the financial statements of the City, certain note disclosures have been modified for capital assets,debt service obligations, actions taken in response to legal violations,variable rate debt and short-term obligations. 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. These and other changes are reflected in the accompanying financial statements (including notes to financial statements). The City has elected to implement the Statement including retroactive reporting of infrastructure (assets acquired prior to July 1,2001)in the current fiscal year. C. Description of Funds The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. The following are types of funds used: Governmental Fund Types • General Fund—Used to account for all financial resources except those required to be accounted for in another fund. • Special Revenue Funds—Used to account for the proceeds of specific revenue sources that are restricted by law or administrative action for specified purposes. • 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. 31 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Fiduciary Fund Type • Agency Funds — Used to account for assets held by the City as an agent for individuals, private organizations,other governments and/or other funds. D. Basis of Accounting/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. Governmental Fund Financial Statements Governmental fund fmancial 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. 32 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,Continued 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 Park Development Special Revenue Fund is used to used account for state and county grants used for the acquisition of open space and park improvements. 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 State and Federal Assistance Special Revenue Fund is used to account for Federal and State grants used for the construction of streets and related improvements and help fund law enforcement. 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. 33 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 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. E. 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$5,733,283. This increase resulted primarily from rebudgeted projects and amounts carried over from Fiscal Year 2001-2002 as continuing appropriations. Under Article X11113 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, 2003, based on calculations by City Management, proceeds of taxes did not exceed related appropriations. F. 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 7.41 percent (6.5 percent for the City and .91 percent for the Mosquito Abatement District) 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. 34 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,Continued G. Land Held for Resale Land held for resale in the Low and Moderate Income Housing Special Revenue Fund and the Capital Projects Fund represent land purchased by the Agency. Such land 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. H. 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 I. 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. 35 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,Continued J. 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). 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). K. 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. L. Deferred Revenue Deferred revenue is recorded monies collected in advance that have not been earned. As of June 30, 2003, total deferred revenue reported is $169,565. M. 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, 2003, 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. 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. 36 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued N. 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. O. Used 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. 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". Cash and investments at June 30, 2003, consisted of the following: Unrestricted Cash and Investments Cash on hand $ 1,100 Demand deposits 955,055 LAIF 51,864,192 U.S.Treasury and Agency Securities 15,506,529 Total Unrestricted Cash and Investments 68,326,876 Restricted Investments Money Markets 37,465 Guaranteed Investment Contracts 1,355,774 Total Restricted Investments 1,393,239 Total Cash and Investments $ 69,720,115 37 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#2—CASH AND INVESTMENTS,Continued Cash and investments are reported in the basic fmancial statements as follows: Governmental Funds: Unrestricted $ 66,375,748 Restricted 1,393,239 Fiduciary Funds: Unrestricted 1,951,128 Total Cash and Investments $ 69,720,115 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. 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, 2003, the City did not utilize overnight repurchase agreements, reverse- repurchase agreements,or investment vehicles;nor did it engage in security lending activities. 38 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#2—CASH AND INVESTMENTS, Continued Classification of Deposits and Investments by Credit Risk Statement No. 3 of the Governmental Accounting Standards Board requires that deposits and investments be classified into three categories of credit risk. These categories are 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. 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. Deposits and investments were categorized as follows at June 30, 2003: Bank Bank Balance Category Balance Carrying 1 2 3 Total Value Demand Deposits $ 100,000 $ 973,675 $ 1,073,675 $ 955,055 39 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#2—CASH AND INVESTMENTS, Continued Investments at June 30, 2003, by risk category are as follows: Category Carrying 1 2 3 Value Fair Value Unrestricted Investments Local Agency Investment Fund(1) $51,864,192 $52,011,812 (2) US Treasury Bills $ 3,038,430 3,038,430 3,038,430 FNMA 5,980,733 5,980,733 5,980,733 FMCDN 1,487,742 1,487,742 1,487,742 FHLB 4,999,624 4,999,624 4,999,624 Total Unrestricted Investments 15,506,529 67,370,721 67,518,341 Restricted Investments Fidelity US Treasury Money Market Funds(1) 37,465 37,465 Transamerica Investment Agreement 1999(1) 771,100 771,100 CDC Funding Investment Agreement 2001 (1) 584,674 584,674 Total Restricted Investments 1,393,239 1,393,239 Total Investments $15,506,529 $68,763,960 $68,911,580 (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, 2003, the carrying amount of the pool was $55,422,506,109 and the estimated market value of the pool (including accrued interest) was $55,709,492,881. The City's proportionate share of the value is $51,864,192. Included in LAIF's investment portfolio are certain derivated securities or similar products in the form of structures notes, totaling $304,000,000 and asset-backed securities totaling $985,676,000. LAIF's (and the City's) exposure to risk (credit, market, or legal) is not currently available. Fair Value of Investments GASB Statement No. 31 generally applies to investments in external investment pools (State of California LAIF), 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. The City holds an investment in LAIF 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 LAIF. The City had a contractual withdrawal value of$51,864,192 whose pro-rata share of fair value was estimated by the state Treasurer to be $52,011,812. The fair value change in this investment for the year came to an amount that was not material for presentation in the financial statements. 40 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#2—CASH AND INVESTMENTS,Continued 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 LAIF fall under the auspices of the State 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, 2003, are as follows: Beginning Ending Balance Increases Decreases Balance Notes Receivable Asadurian $ 1,200,000 $ 1,200,000 Mission Bell $ 3,421,821 $ (147,245) 3,274,576 Cabrillo 1,475,000 (636,937) 838,063 Toll Brothers 625,000 (225,000) 400,000 Deferred Property Assessments 279,427 (29,178) 250,249 Charles Abbott and Associates 171,072 (164,711) 6,361 Total Notes Receivable 5,972,320 1,200,000 (1,203,071) 5,969,249 Loans Receivable Boys and Girls Club 59,000 (59,000) Employee Computer 5,727 4,189 (2,924) 6,992 Rehabilitation 134,380 76,778 (137,984) 73,174 First-time Homeowners Assistance 297,371 41,469 (45,538) 293,302 Total Loans Receivable 496,478 122,436 (245,446) 373,468 Total Notes and Loans Receivable $ 6,468,798 $ 1,322,436 $ (1,448,517) $ 6,342,717 A. 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(LATE). 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. 41 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#3—NOTES AND LOANS RECEIVABLE, Continued B. Mission Bell Note On August 2, 1995, the Redevelopment Agency of the City of Moorpark (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 payment are due June 30 annually. The balance outstanding at June 30,2003, was$3,274,576. C. 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 Investment Fund(LAW). 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, 2003,was$838,063. D. 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. The principal balance at June 30,2003, was $400,000. E. 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 LAW 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, 2003, the balance outstanding was $250,�49'� F. 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 30,2003,the balance outstanding was $6,361. 42 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#3—NOTES AND LOANS RECEIVABLE, Continued G. 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 30,2003,was$6,992. H. 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, 2003, was $73,174. I. First-Time Homeowners Down-Payment Assistance Program The City operates a first-time homeowners down-payment assistance program. The total balance outstanding at June 30,2003,was $251,833 for City assisted loans and$41,469 for CAL-Home assisted loans. NOTE#4—INTERFUND TRANSACTIONS Due To/Due From Other Funds Due to/due from other funds for the year ending June 30, 2003, consisted of the following: Due to the General Fund from: Park Development Fund Special Revenue Fund $ 590,000 State and Federal Assistance Special Revenue Fund 102,030 Redevelopment Agency Capital Projects Fund 115,511 Non-Major Special Revenue Funds 54,483 Total Due to the General Fund $ 862,024 Due to the State and Federal Assistance Special Revenue Fund from: Non-Major Special Revenue Funds $ 63,009 Due to the Redevelopment Agency Debt Service Fund from: Non-Major Special Revenue Funds $ 10,155 The General Fund advanced the Park Development Fund for park improvements and the State and Federal Assistance Fund in order to begin ISTEA project. The Redevelopment Agency Capital Projects Fund and Low and Moderate Income Housing Fund owe the General Fund for redevelopment costs paid by the General Fund. The State and Federal Assistance Fund advanced the Local Transit Transportation Fund for transit program. The Redevelopment Debt Service Fund advanced Low and Moderate Income Housing Fund for redevelopment activity. 43 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#4—INTERFUND TRANSACTIONS, Continued Interfund Transfers Interfund transfers for the year ended June 30, 2003, consisted of the following: Transfer From Redevelopment Special Revenue Funds Agency Street and Traffic Safety State and Debt Capital Non-Major General Development Endowment Federal Service Projects Governmental Fund Fund Fund Assistance Fund Fund Funds Total General Fund $ 25,288 $ 59,350 $ 388,589 $ 434,701 $ 907,928 Community Developement Special Revenue Fund $ 100,000 $ 100,000 50,000 50,000 300,000 State and Federal Assistance Special Revenue Fund 6,000 6,000 w Redevelopment Agency Captal Projects Fund $ 1,165,053 1,165,053 Redevelopment Agency Debt Service Fund 152,225 152,225 Non-Major Governmental Funds 533,623 717,109 1,250,732 Total $ 633,623 $ 100,000 $ 25,288 $ 59,350 $ 1,882,162 $ 438,589 $ 642,926 $ 3,781,938 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. 44 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 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, 2003. Beginning Ending Balance Increases Decreases Balance Governmental Activities Capital Assets,Not Being Depreciated: Land $ 29,898,670 $1,512,259 $ 31,410,929 Capital Assets,Being Depreciated: Buildings and improvements 8,717,019 6,779 $ (248,765) 8,475,033 Machinery and equipment 1,351,614 387,718 1,739,332 Infrastructure Roadway system 80,846,978 5,578,870 86,425,848 Storm drainage system 1,619,399 1,619,399 Parks system 156,727 156,727 Total Capital Assets,Being Depreciated 92,691,737 5,973,367 (248,765) 98,416,339 Less Accumulated Depreciation For: Buildings and improvements (1,542,582) (202,633) (1,745,215) Machinery and equipment (1,174,728) (189,782) (1,364,510) Infrastructure Roadway system (18,550,528) (1,976,764) (20,527,292) Storm drainage system (71,338) (16,197) (87,535) Parks system (29,778) (3,134) (32,912) Total Accumulated Depreciation (21,368,954) (2,388,510) (23,757,464) Total Capital Assets, Being Depreciated,Net 71,322,783 3,584,857 (248,765) 74,658,875 Governmental Activities Capital Assets,Net $ 101,221,453 $5,097,116 $ (248,765) $ 106,069,804 Depreciation expense was charged to the governmental functions/programs. General government $ 25,297 Public safety 14,598 Public service, including depreciation of general infrastructure assets 2,135,977 Parks and recreation 212,638 Total Depreciation Expense $ 2,388,510 45 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#6—LONG-TERM LIABILITIES Long-term liability activities for the year ended June 30, 2003, are as follows: Balance at Beginning Balance at Due Within of Year Additions Reductions End of Year One Year 1999 Tax Allocation Bonds $ 8,840,000 $(365,000) $ 8,475,000 $ 380,000 2001 Tax Allocation Bonds 11,625,000 11,625,000 15,000 Employee Compensated Absences 276,291 $ 43,954 320,245 $ 20,741,291 $ 43,954 $(365,000) $20,420,245 $ 395,000 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. 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 2004 $ 380,000 $ 382,710 $ 762,710 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 2009-2013 2,510,000 1,271,251 3,781,251 2014-2018 3,185,000 581,953 3,766,953 2019 735,000 17,916 752,916 Total $ 8,475,000 $ 3,631,079 $ 12,106,079 46 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#6—LONG-TERM LIABILITIES,Continued 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 2004 $ 15,000 $ 593,430 $ 608,430 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 2009-2013 85,000 2,938,804 3,023,804 2014-2018 95,000 2,918,595 3,013,595 2019-2023 2,775,000 2,633,122 5,408,122 2024-2028 4,300,000 1,675,106 5,975,106 2029-2032 4,300,000 454,331 4,754,331 Total $11,625,000 $13,577,305 $25,202,305 C. Employee Compensated Absences The long-term liability at June 30, 2003, is $320,245 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, 2003, are$7,835,000. 47 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#7—AGREEMENTS WITH VARIOUS TAXING AGENCIES The Moorpark Redevelopment Agency has entered into five (5) 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 55.85 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. 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. 48 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 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. Ca1PERS 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. 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, 2003, was 1.102 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. 49 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#8—RETIREMENT PLAN, Continued C. Annual Pension Cost For the year ended June 30, 2003, the City's annual pension cost and its actual contributions were $31,456. Also, contributions made directly from employees were zero, but on behalf of the employees the City contributed a total of$224,046. The required contribution for the year ended June 30, 2002, was determined as part of the June 30, 2001, 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, 2001,was three years. Three-Year Trend Information Annual Pension Cost Percentage of APC Net Pension Fiscal Year Ending (APC) Contributed Obligation 6/30/2001 $2,104 100% $0 6/30/2002 $0 100% $0 6/30/2003 $31,456 100% $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 (60.51)% 6/30/2001 $4,380,051 $5,444,425 ($1,064,374) 124.3% $2,756,860 (38.60)% 6/30/2002 $5,318,235 $5,366,749 ($48,514) 100.9% $3,057,091 (1.60)% 50 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 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, 2003. 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 30,2003,total$14,840,000. 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. 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$1,810,000 at June 30, 2003. 51 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#10—SPECIAL ASSESSMENT BONDS, Continued 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$7,180,000 at June 30, 2003. 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. 52 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#11 —RISK MANAGEMENT, Continued 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 $23,613,330. There is a $5,000 per loss deductible. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. 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 $12,289,012. 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. 53 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 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 fmancial resource utilization of unreserved fund balance in a future period. The City's governmental funds reserves and designations at June 30, 2003, 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 $ 1,393,239 Land held for resale $ 990,662 $ 821,075 Housing set-aside _ 1,173,089 Total Reserved $ 990,662 $ 1,393,239 $ 1,994,164 Unreserved, designated: Future projects $ 1,635,285 54 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#12—CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE, Continued A. Reserved for Debt Service These funds are reserved for restricted debt proceeds. B. Reserved for Land Held for Resale These funds are reserved for land 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. NOTE#13—CHANGE IN ACCOUNTING PRINCIPLE In accordance with the GASB Statement No. 34 implementation, the City recorded an adjustment in the governmental funds during the year ended June 30, 2003. Long-term receivables were previously recorded in the Low/Mod Housing Special Revenue Fund and the Capital Project Fund. Because only current financial resources should be recorded in governmental funds, the beginning balance of these receivables have been removed from these funds. The following is a schedule of the effect on beginning fund balance: Redevelopment Low/Mod Areas of Agency Housing Contribution Capital Special Revenue Special Revenue Projects Fund Balance at the Beginning of the Year $ 3,581,138 $ 7,583,360 $ 14,252,277 Change in Accounting Principle (911,237) (133,670) (3,274,576) Restated Fund Balance at the Beginning of the Year $ 2,669,901 $ 7,449,690 $ 10,977,701 55 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2003 NOTE#14—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, 2003: Redevelopment Agency Debt Service Fund $ 304,821 NOTE#15—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. The aggregate of these and other various contractual commitments total of$3,661,442 for the year ended June 30, 2003. 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. 56 SUPPLEMENTARY SCHEDULES This page left blank intentionally. CITY OF MOORPARK JUNE 30,2003 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. 57 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 437,469 $ 437,469 $ 608,120 $ 170,651 Other revenue 9,829 9,829 Total Revenues 437,469 437,469 617,949 180,480 EXPENDITURES Current: Public services 1,241,143 1,241,143 901,403 339,740 Capital outlay 1,168,453 2,634,160 804,084 1,830,076 Total Expenditures 2,409,596 3,875,303 1,705,487 2,169,816 Excess (Deficiency) of Revenues Over Expenditures (1,972,127) (3,437,834) (1,087,538) 2,350,296 OTHER FINANCING SOURCES (USES) Transfers in 1,165,053 1,165,053 Transfers out (451,439) (438,589) 12,850 Total Other Financing Sources(Uses) (451,439) 726,464 1,177,903 Net Change in Fund Balances (1,972,127) (3,889,273) (361,074) 3,528,199 Fund Balance, Beginning of Year,as restated 10,977,701 10,977,701 10,977,701 Fund Balance, End of Year $ 9,005,574 $ 7,088,428 $10,616,627 $ 3,528,199 58 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Taxes $2,813,200 $2,813,200 $3,577,050 $ 763,850 Use of money and property 150,000 150,000 117,425 (32,575) Total Revenues 2,963,200 2,963,200 3,694,475 731,275 EXPENDITURES Current: Public services 772,736 772,736 1,182,196 (409,460) Debt service: Principal 365,000 365,000 365,000 Interest 1,149,554 1,149,554 1,044,915 104,639 Total Expenditures 2,287,290 2,287,290 2,592,111 (304,821) Excess (Deficiency)of Revenues Over Expenditures 675,910 675,910 1,102,364 1,036,096 OTHER FINANCING SOURCES (USES) Transfers in 152,225 152,225 152,225 Transfers out (562,640) (562,640) (1,882,162) (1,319,522) Total Other Financing Sources(Uses) (410,415) (410,415) (1,729,937) (1,319,522) Net Change in Fund Balances 265,495 265,495 (627,573) (893,068) Fund Balance,Beginning of Year 1,922,877 1,922,877 1,922,877 Fund Balance,End of Year $2,188,372 $2,188,372 $1,295,304 $ (893,068) 59 CITY OF MOORPARK NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30,2003 Special Revenue Funds Low and Moderate Traffic Affordable Assessment State Gas Income ASSETS Safety Housing District Tax Housing Cash and investments $ 388,483 $ 711,149 $ 1,718,110 $ 1,207,589 $ 1,513,521 Receivables: Taxes 17,682 Accounts 30,536 52,680 861 11,358 Interest 2,660 Land held for resale 821,075 Total Assets $ 419,019 $ 711,149 $ 1,788,472 $ 1,208,450 $2,348,614 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable and accrued liabilities $ 3,346 $ 145,863 $ 28,283 $ 7,209 Due to other funds 64,638 Deferred revenue $ 21,734 7,324 Total Liabilities 3,346 21,734 153,187 28,283 71,847 FUND BALANCES Reserved for: Land held for resale 821,075 Housing set-aside 1,173,089 Unreserved,reported in: Special revenue funds 415,673 689,415 1,635,285 1,180,167 282,603 Capital projects funds Total Fund Balances 415,673 689,415 1,635,285 1,180,167 2,276,767 Total Liabilities and Fund Balances $ 419,019 $ 711,149 $ 1,788,472 $ 1,208,450 $2,348,614 60 Special Revenue Funds Capital Projects Funds Total Local Non-major Transportation Solid City Hall Police Facilities Equipment Governmental Transit Waste Building Fee Fund Replacement Funds $ 796,814 $ 623,528 $ 1,280,733 $ 393,252 $ 8,633,179 17,682 $ 227,811 20,116 343,362 2,660 821,075 $ 227,811 $ 816,930 $ 623,528 $ 1,280,733 $ 393,252 $ 9,817,958 $ 24,295 $ 45,503 $ 123,494 $ 1,602 $ 379,595 63,009 127,647 140,507 169,565 227,811 45,503 123,494 1,602 676,807 821,075 1,173,089 771,427 4,974,570 $ 623,528 1,157,239 391,650 2,172,417 771,427 623,528 1,157,239 391,650 9,141,151 $ 227,811 $ 816,930 $ 623,528 $ 1,280,733 $ 393,252 $ 9,817,958 61 CITY OF MOORPARK NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30,2003 Special Revenue Funds Low and Moderate Traffic Affordable Assessment State Gas Income Safety Housing District Tax Housing REVENUES Taxes Licenses and permits Fines and forfeitures $ 173,813 Use of money and property 7,431 $ 14,002 $ 25,257 $ 29,050 $ 121,927 Charges for services 1,583 Intergovernmental 624,221 Maintenance assessments 1,975,440 Utility franchise fees Other revenue 41,469 890 104 804 Total Revenues 181,244 55,471 2,003,170 653,375 122,731 EXPENDITURES Current: Public safety 105,667 Public services 80,313 873,676 662,244 1,026,719 Parks and recreation 876,110 Capital outlay 27,899 43,239 Total Expenditures 105,667 80,313 1,777,685 705,483 1,026,719 Excess(Deficiency)of Revenues Over(Under)Expenditures 75,577 (24,842) 225,485 (52,108) (903,988) OTHER FINANCING SOURCES(USES) Transfers in 533,623 717,109 Transfers out (251,494) (67,054) (206,255) Total Other Financing Sources(Uses) 282,129 (67,054) 510,854 Net Change in Fund Balances 75,577 (24,842) 507,614 (119,162) (393,134) Fund Balances,Beginning of Year,as restated 340,096 714,257 1,127,671 1,299,329 2,669,901 Fund Balances,End of Year $ 415,673 $ 689,415 $ 1,635,285 $ 1,180,167 $2,276,767 62 Special Revenue Funds Capital Projects Total Local Non-Major Transportation Solid City Hall Police Equipment Governmental Transit Waste Building Facilities Fee Replacement Funds $ 173,813 $ 16,609 $ 13,084 $ 27,937 $ 9,160 264,457 $ 30,555 32,138 385,412 10,149 1,019,782 331,562 2,307,002 232,324 232,324 43,267 415,967 259,082 13,084 359,499 9,160 4,072,783 105,667 205,715 2,848,667 339,344 1,215,454 5,144 4,500 472,226 68,654 621,662 344,488 205,715 4,500 472,226 68,654 4,791,450 71,479 53,367 8,584 (112,727) (59,494) (718,667) 1,250,732 (71,479) (46,644) (642,926) (71,479) (46,644) 607,806 6,723 8,584 (112,727) (59,494) (110,861) 764,704 614,944 1,269,966 451,144 9,252,012 $ 771,427 $ 623,528 $ 1,157,239 $ 391,650 $ 9,141,151 63 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Fines and forfeitures $ 120,000 $ 120,000 $ 173,813 $ 53,813 Use of money and property 9,143 9,143 7,431 (1,712) Total Revenues 129,143 129,143 181,244 52,101 EXPENDITURES Current: Public safety 126,193 127,090 105,667 21,423 Total Expenditures 126,193 127,090 105,667 21,423 Net Change in Fund Balances 2,950 2,053 75,577 73,524 Fund Balance,Beginning of Year 340,096 340,096 340,096 Fund Balance, End of Year $ 343,046 $ 342,149 $415,673 $ 73,524 64 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 25,373 $ 25,373 $ 14,002 $ (11,371) Other revenue 41,469 41,469 Total Revenues 25,373 25,373 55,471 30,098 EXPENDITURES Current: Public services 114,141 114,141 80,313 33,828 Total Expenditures 114,141 114,141 80,313 33,828 Net Change in Fund Balances (88,768) (88,768) (24,842) 63,926 Fund Balance,Beginning of Year 714,257 714,257 714,257 Fund Balance, End of Year $ 625,489 $ 625,489 $ 689,415 $ 63,926 65 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 34,389 $ 34,389 $ 25,257 $ (9,132) Charges for services 2,000 2,000 1,583 (417) Maintenance assessments 1,950,839 1,958,717 1,975,440 16,723 Other revenue 1,000 1,000 890 (110) Total Revenues 1,988,228 1,996,106 2,003,170 7,064 EXPENDITURES Current: Public services 1,172,290 1,437,036 873,676 563,360 Parks and recreation 1,202,066 1,030,583 876,110 154,473 Capital outlay 25,000 25,000 27,899 (2,899) Total Expenditures 2,399,356 2,492,619 1,777,685 714,934 Excess(Deficiency) of Revenues Over Expenditures (411,128) (496,513) 225,485 721,998 OTHER FINANCING SOURCES (USES) Transfers in 699,766 778,006 533,623 (244,383) Transfers out (251,494) (251,494) (251,494) Total Other Financing Sources(Uses) 448,272 526,512 282,129 (244,383) Net Change in Fund Balances 37,144 29,999 507,614 477,615 Fund Balance,Beginning of Year 1,127,671 1,127,671 1,127,671 Fund Balance, End of Year $1,164,815 $1,157,670 $1,635,285 $ 477,615 66 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 44,029 $ 44,029 $ 29,050 $ (14,979) Intergovernmental 558,000 558,000 624,221 66,221 Other revenue 104 104 Total Revenues 602,029 602,029 653,375 51,346 EXPENDITURES Current: Public services 779,454 962,108 662,244 299,864 Capital outlay 32,530 32,530 43,239 (10,709) Total Expenditures 811,984 994,638 705,483 289,155 Excess (Deficiency)of Revenues Over Expenditures (209,955) (392,609) (52,108) 340,501 OTHER FINANCING SOURCES(USES) Transfers out (67,054) (67,054) (67,054) Total Other Financing Sources (Uses) (67,054) (67,054) (67,054) Net Change in Fund Balances (277,009) (459,663) (119,162) 340,501 Fund Balance,Beginning of Year 1,299,329 1,299,329 1,299,329 Fund Balance,End of Year $1,022,320 $ 839,666 $1,180,167 $ 340,501 67 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 174,000 $ 174,000 $ 121,927 $ (52,073) Other revenue 804 804 Total Revenues 174,000 174,000 122,731 (51,269) EXPENDITURES • Current: Public services 2,383,050 3,154,185 1,026,719 2,127,466 Total Expenditures 2,383,050 3,154,185 1,026,719 2,127,466 Excess(Deficiency)of Revenues Over Expenditures (2,209,050) (2,980,185) (903,988) 2,076,197 OTHER FINANCING SOURCES (USES) Transfers in 562,640 562,640 717,109 154,469 Transfers out (152,225) (206,255) (206,255) Total Other Financing Sources (Uses) 410,415 356,385 510,854 154,469 Net Change in Fund Balances (1,798,635) (2,623,800) (393,134) 2,230,666 Fund Balance, Beginning of Year, as restated 2,669,901 2,669,901 2,669,901 Fund Balance, End of Year $ 871,266 $ 46,101 $2,276,767 $ 2,230,666 68 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Charges for services $ 27,400 $ 27,400 $ 30,555 $ 3,155 Intergovernmental 486,521 488,061 385,412 (102,649) Total Revenues 513,921 515,461 415,967 (99,494) EXPENDITURES Current: Parks and recreation 414,174 381,212 339,344 41,868 Capital outlay 99,747 99,747 5,144 94,603 Total Expenditures 513,921 480,959 344,488 136,471 Excess (Deficiency) of Revenues Over Expenditures 34,502 71,479 36,977 OTHER FINANCING SOURCES (USES) Transfers out (71,479) (71,479) Total Other Financing Sources(Uses) (71,479) (71,479) Net Change in Fund Balances (36,977) 36,977 Fund Balance, Beginning of Year Fund Balance, End of Year $ (36,977) $ 36,977 69 CITY OF MOORPARK SCHEDULE OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL SOLD)WASTE SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30,2003 Variance with Final Budget- _ Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 20,916 $ 20,916 $ 16,609 $ (4,307) Intergovernmental 23,384 23,384 10,149 (13,235) Utility franchise fees 215,450 215,450 232,324 16,874 Total Revenues 259,750 259,750 259,082 (668) EXPENDITURES Current: Public services 198,282 228,452 205,715 22,737 Total Expenditures 198,282 228,452 205,715 22,737 Excess(Deficiency) of Revenues Over Expenditures 61,468 31,298 53,367 22,069 OTHER FINANCING SOURCES (USES) Transfers out (46,644) (46,644) (46,644) Total Other Financing Sources (Uses) (46,644) (46,644) (46,644) Net Change in Fund Balances 14,824 (15,346) 6,723 22,069 Fund Balance,Beginning of Year 764,704 764,704 764,704 Fund Balance,End of Year $ 779,528 $ 749,358 $ 771,427 $ 22,069 70 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 17,852 $ 17,852 $ 13,084 $ (4,768) Total Revenues 17,852 17,852 13,084 (4,768) EXPENDITURES Capital outlay 620,000 620,000 4,500 615,500 Total Expenditures 620,000 620,000 4,500 615,500 Net Change in Fund Balances (602,148) (602,148) 8,584 610,732 Fund Balance,Beginning of Year 614,944 614,944 614,944 Fund Balance, End of Year $ 12,796 $ 12,796 $ 623,528 $ 610,732 71 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 42,246 $ 42,246 $ 27,937 $ (14,309) Maintenance assessments 355,977 355,977 331,562 (24,415) Total Revenues 398,223 398,223 359,499 (38,724) EXPENDITURES Capital outlay 515,000 515,000 472,226 42,774 Total Expenditures 515,000 515,000 472,226 42,774 Net Change in Fund Balances (116,777) (116,777) (112,727) 4,050 Fund Balance,Beginning of Year 1,269,966 1,269,966 1,269,966 Fund Balance, End of Year $ 1,153,189 $ 1,153,189 $ 1,157,239 $ 4,050 72 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 30,2003 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of money and property $ 12,199 $ 12,199 $ 9,160 $ (3,039) Total Revenues 12,199 12,199 9,160 (3,039) EXPENDITURES Capital outlay 58,200 81,076 68,654 12,422 Total Expenditures 58,200 81,076 68,654 12,422 Net Change in Fund Balances (46,001) (68,877) (59,494) 9,383 Fund Balance,Beginning of Year 451,144 451,144 451,144 Fund Balance,End of Year $ 405,143 $ 382,267 $ 391,650 $ 9,383 73 CITY OF MOORPARK STATEMENT OF CHANGES IN NET ASSETS AGENCY FUND FOR THE YEAR ENDED JUNE 30,2003 Balance Balance July 1, 2002 Additions Reductions June 30, 2003 ASSETS Cash and investments $ 1,966,219 $ (15,091) $ 1,951,128 LIABILITIES Accounts payable $ 227,731 (119,987) 107,744 Developer deposits 1,738,488 $ 104,896 1,843,384 Total Liabilities $ 1,966,219 $ 104,896 $ (119,987) $ 1,951,128 74 NOI DIS rIVDIZSIINIS This page left blank intentionally. 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 and Other Total Year (See Note I) Fees Agencies Assessments Property Revenue Revenue 1994 $ 3,902,251 $ 2,717,299 $ 1,966,343 $ 3,592,238 $ 1,356,679 $ 1,128,888 $ 14,663,698 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 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 75 CITY OF MOORPARK EXPENDITURES BY FUNCTION ALL GOVERNMENTAL FUND TYPES LAST TEN FISCAL YEARS Fiscal General Public Public Parks and Capital Debt Year Government Safety Services Recreation Outlay Service Total 1994 $ 1,502,504 $ 2,417,915 $ 2,913,513 $ 989,482 $ 9,218,073 $ 554,029 $ 17,595,516 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 8,745,681 2,063,428 3,596,982 1,409,915 21,992,334 Governmental Fund Types include General Fund and all Special Revenue, Debt Service, and Capital Projects Funds. Source: City of Moorpark 76 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 1994 $ 1,673,307,475 $ 57,005,483 $ 1,730,312,958 -0.1% $ 33,943,139 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 Source: Ventura County Assessor 77 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 1994 $ 1,014,559 $ 47,974 4.7% 1995 1,071,364 36,880 3.4% 1996 1,109,404 26,390 2.4% 1997 1,158,953 24,705 2.1% 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% Source: California Municipal Statistics, Inc. 78 CITY OF MOORPARK DIRECT AND OVERLAPPING BONDED DEBT AS OF FISCAL YEAR 2002-2003* 2002-2003 Assessed Valuation: $2,986,920,215 Redevelopment Incremental Valuation: 338,488,141 Adjusted Assessed Valuation: $2,648,432,074 Percent Debt Direct and Overlapping Tax and Assessment Debt: Applicable as of 6/30/03 Ventura County Flood Control District Zone No. 3 8.097% $ 23,886 Metropolitan Water District 2.340% 1,039,650 Ventura Community College District 4.312% 3,665,200 Conejo Valley Unified School District 0.025% 16,185 Moorpark Unified School District 91.733% 20,255,267 City of Moorpark 100.000% 0 City of Moorpark Community Facilities District No. 97-1 100.000% 7,180,000 City of Moorpark 1915 Act Bonds 100.000% 1,860,000 Total Direct and Overlapping Tax and Assessment Debt $ 34,040,188 Overlapping General Fund Obligation Debt: Ventura County General Fund Obligations 4.311% $ 3,595,805 Ventura County Pension Obligations 4.311% 3,849,723 Ventura County Community College District COPS 4.312% 413,736 Ventura County Library District Authority 91.733% 4,288,518 Total Overlapping General Fund Obligation Debt $ 12,147,782 Combined Total Debt* $ 46,187,970 Ratios to 2002-2003 Assessed Valuation: Direct Debt 0.00% Total Direct and Overlapping Tax& Assessment Debt 1.14% Ratio to Adjusted Assessed Valuation Combined Total Debt 1.74% State School Building Aid Repayable as of 6/30/03 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. 79 CITY OF MOORPARK COMPUTATION OF LEGAL DEBT MARGIN AND BREAKDOWN OF GENERAL PROPERTY TAX LEVY Legal Debt Margin as of June 30,2003 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 $ 20,100,000 Less CRA Tax Allocation Bonds 20,100,000 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 8.77% City of Moorpark 6.50% 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% Moorpark Mosquito Abatement 0.91% 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 80 CITY OF MOORPARK CITY POPULATION LAST TEN YEARS Percent Year Population Change 1994 27,170 1.7% 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% Source: City of Moorpark and State Department of Finance 81 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 1994 $ 26,189,940 250 $ 11,374,256 55 $ 37,564,196 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 Source: City of Moorpark 82 CITY OF MOORPARK. LARGEST PROPERTY OWNERS PER ASSESSED VALUATION 2003 Assessed Value of Property Owner Property Autosafe Airbag Limited Partnership 76,407,060 Fred Kavli 39,004,642 Toll California Limited Partnership 35,651,094 Mission Bell Plaza 34,957,388 Security Capital Pacific Trust 32,357,698 Communities Archstone Trust 31,776,622 Laars Inc. 20,544,500 G S Partnership 18,635,928 Calabasas BCD Inc. 17,870,529 James Lessor Birkenshaw EL Al. 16,176,381 Source: Hdl Coren&Cone and Ventura County Assessor 83 CITY OF MOORPARK MISCELLANEOUS STATISTICS Year of Incorporation: 1983 Parks and Recreation: Number of Parks 15 Form of Government: Council-Manager Park Acreage 160 acres General Law City Most Recent Population Estimate: 34,529 Education(Number of Schools): High Schools 3 Registered Voters: 15,365 Middle Schools 2 Elementary Schools 6 City Employees: 106 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: 24 Number of Support Personnel: 2 84