Loading...
HomeMy WebLinkAboutACFR 2002 CITY OF MOORPARK MOORPARK, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year July 1, 2001 through June 30, 2002 CITY OF MOORPARK ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30,2002 CONTENTS PAGE GENERAL PURPOSE FINANCIAL STATEMENTS Independent Auditors' Report 1 All Fund Types and Account Groups Combined Balance Sheet 3 All Governmental Fund Types Combined Statement of Revenues, Expenditures and Changes In Fund Balances 5 Combined Statement of Revenues, Expenditures and Changes In Fund Balances —Budget and Actual 6 Notes to General-Purpose Financial Statements 8 SUPPLEMENTARY SCHEDULES All Special Revenue Funds Combining Balance Sheet 26 Combining Statement of Revenues, Expenditures and Changes In Fund Balances 29 Combining Statement of Revenues, Expenditures and Changes In Fund Balances —Budget and Actual 32 All Capital Projects Funds Combining Balance Sheet 38 Combining Statement of Revenues, Expenses and Changes In Fund Balances 40 Combining Statement of Revenues, Expenditures and Changes In Fund Balance -Budget and Actual 42 Agency Fund—Developer Deposit Fund Statement of Changes in Assets and Liabilities 44 CITY OF MOORPARK ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30,2002 CONTENTS (Continued) PAGE STATISTICAL SECTION Revenues by Source—All Governmental Fund Types—Last Ten Fiscal Years 45 Expenditures by Function—All Governmental Fund Types—Last Ten Fiscal Years 46 Assessed Value of Taxable Property—Last Ten Fiscal Years 47 Secured Tax Charge and Delinquencies—Most Recent Five Year History 48 Direct and Overlapping Bonded Debt as of Fiscal Year 2001-2002 49 Computation of Legal Debt Margin and Breakdown of General Property Tax Levy 50 City Population—Last Ten Years 51 Building Permit Valuation—Last Ten Fiscal Years 52 Largest Property Owners—Per Assessed Valuation 2002 53 Miscellaneous Statistics 54 7.I! Vavrinek,Trine, Day & Co., LLP Certified Public Accountants&Consultants VALUE THE DIFFERENCE INDEPENDENT AUDITORS' REPORT The Honorable City Council City of Moorpark Moorpark,California We have audited the accompanying general-purpose financial statements of the City of Moorpark as of and for the year ended June 30, 2002, as listed in the accompanying table of contents. These general-purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general-purpose 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 general-purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general-purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general-purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In accordance with Government Auditing Standards, we have also issued a report dated November 14, 2002 on our consideration of City of Moorpark's internal control over financial reporting and 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. The City has not maintained a complete historical record of its fixed assets and accordingly the financial statements do not include the general fixed assets group of accounts as required by accounting principles generally accepted in the United States of America. The amount that should be recorded in the general fixed assets account group relates to historical data that is not currently available. In our opinion, except for the omission of the information discussed in the preceding paragraph, the general- purpose financial statements referred to above present fairly,in all material respects,the financial position of the City of Moorpark, California as of June 30, 2002, and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America. 1 8270 Aspen Street Rancho Cucamonga,CA 91730 Tel:909 466.4410 Fax:909.466.4431 www.vtdcpa.com FRESNO • LAGUNA HILLS • PLEASANTON • RANCHO CUCAMONGA • SACRAMENTO • SAN JOSE Our audit was made for the purpose of forming an opinion on the general-purpose financial statements taken as a whole. The combining and individual fund statements listed in the accompanying table of contents as supplementary information are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements of the City of Moorpark, California. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated, in all material respects in relation to the general-purpose financial statements taken as a whole. The statistical information listed in the table of contents was not audited by us, and accordingly, we do not express an opinion thereon. 1,70 Dal Rancho Cucamonga,California November 14, 2002 2 This page left blank intentionally. CITY OF MOORPARK COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30,2002 (With Comparative Totals for June 30, 2001) GOVERNMENTAL FUND TYPES Special Capital Debt General Revenue Projects Service ASSETS AND OTHER DEBITS Cash and Investments $ 11,086,154 $ 35,244,802 $ 11,882,770 $ 1,000,560 Restricted cash and investments 1,581,347 Accounts and interest receivable,net 1,036,734 849,183 118,257 27,004 Taxes receivable 31,477 Notes and loans receivable 64,727 3,263,283 3,444,704 Due from other funds 167,580 42,461 275,308 Other assets 471 22,486 11,120 Land held for resale 821,075 990,622 Amount available for debt service Amount to be provided for retirement of general long-term debt Total Assets $ 12,355,666 $ 40,274,767 $ 16,722,781 $ 2,608,911 LIABILITIES Liabilities: Accounts payable and accrued liabilities 601,568 1,394,413 79,402 686,034 Employees compensated absences payable Deposits,principally from developers 2,927 8,883 Due to other funds 439,184 46,165 Deferred revenue 1,455,104 Tax allocation bonds payable Total Liabilities 601,568 3,291,628 134,450 686,034 FUND EQUITY AND OTHER CREDITS Fund balances and other credits: Fund balances: Reserved for unpaid grants 5,315 Reserved for encumbrances 25,717 691,972 267 Reserved for receivables due after one year,net 64,727 2,053,697 3,444,704 Reserved for land held for resale 821,075 990,622 Reserved for prepaid expenditures Reserved for debt services 1,922,877 Reserved for low/moderate income housing 1,173,088 Unreserved: Designated Undesignated 11,658,339 32,243,307 12,152,738 Total Fund Equity and Other Credits 11,754,098 36,983,139 16,588,331 1,922,877 Total Liabilities and Fund Equity $ 12,355,666 $ 40,274,767 $ 16,722,781 $ 2,608,911 The accompanying notes are an integral part of these financial statements. 3 FIDUCIARY FUND ACCOUNT TOTALS TYPE GROUPS (Memorandum Only) General-Long Agency Term Debt 2002 2001 $ 1,966,219 $ 61,180,505 $ 47,743,246 1,581,347 803,959 2,031,178 1,446,101 31,477 285,757 6,772,714 4,352,062 485,349 715,244 34,077 15,082 1,811,697 2,734,878 $ 1,922,877 1,922,877 403,309 18,818,414 18,818,414 9,024,226 $ 1,966,219 $ 20,741,291 $ 94,669,635 $ 67,523,864 227,731 2,989,148 4,113,631 276,291 276,291 232,535 1,738,488 1,750,298 1,442,668 485,349 715,244 1,455,104 559,804 20,465,000 20,465,000 9,195,000 1,966,219 20,741,291 27,421,190 16,258,882 5,315 5,315 717,956 596,104 5,563,128 4,313,968 1,811,697 2,734,878 4,492 1,922,877 403,309 1,173,088 1,832,626 233,678 56,054,384 41,140,612 67,248,445 51,264,982 $ 1,966,219 $ 20,741,291 $ 94,669,635 $ 67,523,864 4 This page left blank intentionally. CITY OF MOORPARK COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2002 (With Comparative Totals for the Fiscal Year Ended June 30,2001) TOTALS GOVERNMENTAL FUND TYPES (Memorandum Only) J o a a.2if tL3 :r. .. General Special Capital Debt Fund Revenue Projects Service 2002 2001 REVENUES Property taxes $ 2,173,598 $2,646,012 $ 4,819,610 $ 4,503,755 Sales taxes 1,790,801 1,790,801 1,869,411 Other taxes $ 552,240 552,240 662,865 Motor vehicle license fees 1,954,948 1,954,948 1,656,722 Utility franchise fees 839,920 209,262 1,049,182 870,580 Building and safety fees 38,555 851,914 890,469 924,610 Maintenance assessments 4,922,207 $ 153,850 5,076,057 6,385,546 Subventions and grants 137,905 1,964,689 2,102,594 1,688,714 Planning and public works fees 1,491,350 1,491,350 1,321,470 Development fees 966,879 966,879 2,181,308 Charges for current services 682,309 122,104 804,413 821,094 Fines and forfeitures 128,654 145,828 274,482 268,720 Interest 451,320 1,264,429 349,681 143,420 2,208,850 2,987,920 Other 206,880 640,434 265,497 1,112,811 247,826 Total Revenues 8,404,890 13,131,336 769,028 2,789,432 25,094,686 26,390,541 EXPENDITURES Current: General government 1,808,984 141 1,809,125 1,601,638 Public safety 3,694,096 211,000 3,905,096 3,830,253 Public services 669,087 4,650,271 471,221 1,171,910 6,962,489 5,035,651 Parks and recreation 722,133 1,199,455 1,921,588 1,851,648 Capital outlay 235,476 2,909,117 1,645,139 4,789,732 6,888,258 Debt service Principal 355,000 355,000 2,210,369 Interest 770,529 770,529 557,401 Total Expenditures 7,129,776 8,969,843 2,116,501 2,297,439 20,513,559 21,975,218 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 1,275,114 4,161,493 (1,347,473) 491,993 4,581,127 4,415,323 OTHER FINANCING SOURCES(USES) Operating transfers in 802,669 1,107,639 405,251 152,727 2,468,286 2,918,573 Proceeds from bond issuance 10,000,965 1,404,051 11,405,016 Proceeds from sale of city property 5,100 5,100 11,684 Loss from sale of city property (7,780) (7,780) (15,000) Operating transfers out (922,141) (1,016,942) (529,203) (2,468,286) (2,918,573) Total Other Financing Sources(Uses) (119,472) 88,017 10,406,216 1,027,575 11,402,336 (3,316) EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 1,155,642 4,249,510 9,058,743 1,519,568 15,983,463 4,412,007 Fund Balances,Beginning of Year 10,598,456 32,733,629 7,529,588 403,309 51,264,982 45,933,672 Prior Period Adjustment 919,303 Fund Balances,End of Year $ 11,754,098 $ 36,983,139 $16,588,331 $1,922,877 $ 67,248,445 $ 51,264,982 The accompanying notes are an integral part of these financial statements. 5 CITY OF MOORPARK COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30,2002 GENERAL FUND SPECIAL REVENUE FUNDS Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES Property taxes $ 1,912,700 $ 2,173,598 $ 260,898 Sales taxes 1,830,908 1,790,801 (40,107) Other taxes $ 612,000 $ 552,240 $ (59,760) Motor vehicle license fees 1,634,223 1,954,948 320,725 Utility franchise fees 652,000 839,920 187,920 205,300 209,262 3,962 Building and safety fees 36,100 38,555 2,455 1,451,760 851,914 (599,846) Maintenance assessments 5,874,163 4,922,207 (951,956) Subventions and grants 147,924 137,905 (10,019) 3,792,487 1,964,689 (1,827,798) Planning and public works fees 2,887,316 1,491,350 (1,395,966) Development fees 835,044 966,879 131,835 Charges for current services 560,665 682,309 121,644 122,104 122,104 Fines and forfeitures 102,000 128,654 26,654 141,000 145,828 4,828 Interest 831,700 451,320 (380,380) 1,906,655 1,264,429 (642,226) Other 64,000 206,880 142,880 110,300 640,434 530,134 7,772,220 8,404,890 632,670 17,816,025 13,131,336 (4,684,689) EXPENDITURES Current: General government 2,178,322 1,808,984 369,338 Public safety 3,929,180 3,694,096 235,084 452,221 211,000 241,221 Public services 841,036 669,087 171,949 8,668,472 4,650,271 4,018,201 Parks and recreation 987,608 722,133 265,475 321,094 1,199,455 (878,361) Capital outlay 245,737 235,476 10,261 14,278,507 2,909,117 11,369,390 Debt service Principal Interest Total Expenditures 8,181,883 7,129,776 1,052,107 23,720,294 8,969,843 14,750,451 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (409,663) 1,275,114 1,684,777 (5,904,269) 4,161,493 10,065,762 OTHER FINANCING SOURCES(USES) Operating transfers in 951,163 802,669 (148,494) 1,364,827 1,107,639 (257,188) Proceeds from bond issuance Proceeds from sale of city property 5,100 5,100 Loss from sale of city property (7,780) (7,780) Operating transfers out (1,149,477) (922,141) 227,336 (1,178,949) (1,016,942) 162,007 Total Other Financing Sources(Uses) (198,314) (119,472) 78,842 190,978 88,017 (102,961) EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ (607,977) 1,155,642 $ 1,763,619 $ (5,713,291) 4,249,510 $ 9,962,801 Fund Balances,Beginning of Year 10,598,456 32,733,629 Fund Balances,End of Year $ 11,754,098 $ 36,983,139 The accompanying notes are an integral part of these financial statements. 6 TOTAL CAPITAL PROJECTS FUNDS DEBT SERVICE (Memorandum Only) Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 2,710,000 $ 2,646,012 $ (63,988) $ 4,622,700 $ 4,819,610 $ 196,910 1,830,908 1,790,801 (40,107) 612,000 552,240 (59,760) 1,634,223 1,954,948 320,725 857,300 1,049,182 191,882 1,487,860 890,469 (597,391) $ 295,474 $ 153,850 $ (141,624) 6,169,637 5,076,057 (1,093,580) 3,940,411 2,102,594 (1,837,817) 2,887,316 1,491,350 (1,395,966) 835,044 966,879 131,835 560,665 804,413 243,748 243,000 274,482 31,482 209,600 349,681 140,081 35,000 143,420 108,420 2,982,955 2,208,850 (774,105) 402,000 265,497 (136,503) 576,300 1,112,811 536,511 907,074 769,028 (138,046) 2,745,000 2,789,432 44,432 29,240,319 25,094,686 (4,145,633) 515,000 141 514,859 2,693,322 1,809,125 884,197 4,381,401 3,905,096 476,305 359,254 471,221 (111,967) 1,166,800 1,171,910 (5,110) 11,035,562 6,962,489 4,073,073 1,308,702 1,921,588 (612,886) 2,371,129 1,645,139 725,990 16,895,373 4,789,732 12,105,641 355,000 355,000 355,000 355,000 825,000 770,529 54,471 825,000 770,529 54,471 3,245,383 2,116,501 1,128,882 2,346,800 2,297,439 49,361 37,494,360 20,513,559 16,980,801 (2,338,309) (1,347,473) 990,836 398,200 491,993 93,793 (8,254,041) 4,581,127 12,835,168 401,700 405,251 3,551 152,737 152,727 (10) 2,870,427 2,468,286 (402,141) 10,000,965 10,000,965 1,404,100 1,404,051 (49) 11,405,065 11,405,016 (49) 5,100 5,100 (7,780) (7,780) (542,000) (529,203) 12,797 (2,870,426) (2,468,286) 402,140 10,402,665 10,406,216 3,551 1,014,837 1,027,575 12,738 11,410,166 11,402,336 (7,830) $ 8,064,356 9,058,743 $ 994,387 $ 1,413,037 1,519,568 $ 106,531 $ 3,156,125 15,983,463 $ 12,827,338 7,529,588 403,309 51,264,982 $16,588,331 $ 1,922,877 $ 67,248,445 7 This page left blank intentionally. CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Moorpark (the City), accounts for its financial operations in accordance with accounting principles generally accepted in the United States of America applicable to governmental units. Accordingly, the City uses several fund types and an account group as described below. A. Fund Types and Account Group The accounts of the City are organized on the basis of individual funds and an account group, 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 or expenses as appropriate. The City's resources are allocated to and accounted for in these individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in the general-purpose financial statements as follows: Governmental Fund Types • General Fund: The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. • Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. • Capital Project Funds: Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. • Debt Service Funds: The Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Fiduciary Funds • Agency Funds: Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments and/or other funds. The agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The agency funds use the modified accrual basis of accounting. Account Group • General Long-Term Debt Account Group The General Long-Term Debt Account Group is used to account for unmatured long-term indebtedness of the governmental fund types. 8 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) B. Measurement Focus All governmental funds are accounted for on a spending or financial flow measurement focus, which means that only current assets and current liabilities are generally included on their balance sheets. Their reported . fund balance is their net current assets, which is considered only to be a measure of available spendable resources. Governmental fund operating statements present a summary of sources and uses of available spendable resources during a period by presenting increases and decreases in net current assets. Because of their spending measurement focus, governmental funds exclude noncurrent liabilities. Instead, these liabilities are reported in the general long-term obligation account group. This account measures only financial position; it is not a fund and does not measure results of operations. This account group maintains accounting control over the City's Debt, which will be repaid by governmental funds. In those cases when a governmental fund records a long-term receivable or other non-current asset, an offsetting credit is made to deferred revenue, or undesignated fund balance is reduced to reflect the fact that this amount is not yet available. C. Reporting Entity The accompanying general-purpose financial statements include all accounts for the City and the Redevelopment Agency. The City of Moorpark Redevelopment Agency is a separate legal entity, over which the City Council exercises significant oversight responsibility and authority. The Financial operations of the Redevelopment Agency are included in the accompanying financial statements based on the financial interdependency of the City and the Redevelopment Agency, the absence of authoritative independence of its officials, and the significant ability of the City Council to influence the Redevelopment Agency's operations and fiscal matters. A component unit financial statement for the City of Moorpark Redevelopment Agency previously described may be obtained at 799 Moorpark Avenue, Moorpark, California 93021. D. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the general-purpose financial statements. Basis of accounting relates to the timing of the measurements made,regardless of the measurement focus applied. All governmental and agency fund types are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Those revenues susceptible to accrual are property taxes, sales taxes,transient occupancy taxes, interest revenues, and charges for services. Fines,licenses, and permit revenues are not susceptible to accrual because they generally are not measurable until received in cash. 9 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on general long-term obligations which is recognized when due. Because of their current financial resources focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund expenditures or fund liabilities. E. Interfund Transactions In the course of normal operations, transactions occur among various City funds. Recurring operating transfers are recorded by the receiving fund as an operating transfer in and as an addition to fund balance. Such transfers are recorded by the disbursing fund as an operating transfer out and a reduction of fund balance. Due to/from accounts and advance to/from accounts are primarily related to advances made by the General Fund to various Special Revenue and Capital Projects Funds and the Redevelopment Agency. Advances to Special Revenue and Capital Projects Funds are current and will be repaid from the receipt of grant funds and future revenues. F. Property Taxes The duties of assessing and collecting property taxes are performed by the Ventura County (County) Assessor and Tax Collector, respectively. The City receives an allocation of property taxes collected by the County with respect to property located within the City limits equal to 6.5 percent of the 1 percent State levy. The Redevelopment Agency receives incremental property taxes on property within its project area over the base-assessed valuation at the date the project area was established. Tax levies cover the period from July 1 to June 30 of each year. All tax liens are attached annually on the first day in January preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property, as it exists on that date. Secured property taxes are levied against real property and are due and payable in two equal installments. The first installment is due on November 1 and becomes delinquent if not paid by December 10. The second installment is due on February 1 and becomes delinquent if not paid by April 10. Unsecured personal property taxes are due on July 1 each year. These taxes become delinquent if not paid by August 31. G. Land Held for Resale Land held for resale in the Redevelopment Low-and-Moderate Income Housing Special Revenue Fund and the Redevelopment Capital Projects Fund totaled $1,811,697 at June 30, 2002. Such property represents land purchased by the Agency for redevelopment purposes. Land is valued at the lower of cost or estimated net realizable value. 10 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) H. Long-Term Liabilities The General Long Term Debt Account Group provides accounting control over the unmatured principal of the City's general long-term debt. This debt will be repaid out of governmental funds but is not accounted for in these funds because this part of the debt does not require an appropriation or expenditure in this accounting period. The account group is not a fund. It is concerned only with the measurement of financial position. It is not involved with measurement of results of operations. I. Deposits Deposits principally consist of amounts collected from developers for services to be rendered by the City, including engineering, plan checks and inspections and planning review services. The City recognizes such amounts deposited as revenue when the services are performed and the corresponding expenditures are incurred. J. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in the governmental funds. Open encumbrances are recorded as reservations of fund balance since the commitments will be paid by subsequent years' budget appropriations. Encumbrances do not constitute expenditures,or liabilities. Governmental Accounting Standards Board(GASB) Statement No.34 The Governmental Accounting Standards Board has issued Statement No. 34, "Basic Financial Statements— and Management's Discussion and Analysis — for State and Local Governments". This Statement establishes a new financial reporting model for state and local governments. This new model requires that at a minimum the basic financial statements of a government include: (1) Management's discussion and analysis (MD&A) as a component of required supplementary information (RSI), (2) both government-wide financial statements and fund financial statements, (3) notes to the financial statements and (4) RSI other than MD&A. The implementation of the Statement is mandated in three phases based upon a government's total annual revenues of its governmental and enterprise funds in the fiscal years ending after June 15, 1999. Phase 1 governments, those with annual revenues of $100 million or greater will be required to implement for periods beginning after June 15, 2001. Phase 2 governments,those with annual revenues of$10 million or more but less than$100 million will be required to implement for periods beginning after June 15, 2002. 11 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Phase 3 governments,those with annual revenues of less than$10 million will be required to implement for periods beginning after June 15,2003. The Statement also requires that governments capitalize all infrastructure assets, and also include all debt of the government in the Statement of Net Assets. This will require a complete change in the presentation of government financial statements. The City of Moorpark has already begun to develop plans and implement policies to prepare for the implementation of the new reporting model defined within GASB Statements No. 34. 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 to off set long-term notes receivables and for monies collected in advance that have not been earned. As of June 2002, total deferred revenue reported is $1,455,104 of which $1,354,184 is to off set long-term receivables, and$100,920 is for monies collected in advance but not yet earned. M. Total(Memorandum Only)Columns The combined financial statements include certain "Memorandum Only" totals, which represent mathematical summations of account totals by fund type and account group and do not reflect the elimination of interfund transactions. Such totals are for information purposes only and do not present consolidated financial information. 12 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 NOTE#2—BUDGETARY INFORMATION The City Council adopts a formal budget at the beginning of the City's fiscal year providing for operations and capital expenditures of the City's General Fund, Special Revenue Funds, Capital Projects Funds, and the Debt Service Funds. Budgetary controls and the levying of taxes are established by the City within state limitations. The City's adopted budget requires that expenditures not exceed appropriations in total from each fund. The budgetary basis of accounting is consistent with accounting principles generally accepted in the United States of America applicable to the City's financial statements. The Council is authorized to make and has made appropriation adjustments to the budget during the year as deemed necessary. Such adjustments, which are considered immaterial, are included in the budget amounts in the accompanying general-purpose financial statements. Appropriations lapse at year-end. NOTE#3—CASH AND INVESTMENTS Cash and investments of the City are pooled for deposit and investment purposes. Interest earned on pooled investments is credited to the funds based on each fund's average deposit balance. Investments are stated at fair value. The City's investments consist primarily of the State of California Local Agency Investment Fund(LAIF) and money market investments. A. Deposits The California Government Code requires California banks and savings and loan associations to secure a city's deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 110 percent of a city's deposits. California law also allows financial institutions to secure such deposits by pledging first trust deed mortgage notes having a value of 150 percent of a city's total deposits. B. Investments The City temporarily invests its excess cash in instruments, which are allowable under current legislation of the State of California(Government Code Section 53600 et seq.). The state code permits investments in the following instruments: • 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 13 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2002 NOTE#3—CASH AND INVESTMENTS(Continued) As of and for the year ended June 30, 2002 and for the year ended, the City did not choose to utilize either repurchase agreements or reverse-repurchase agreements, investment vehicles; nor did it engage in securities lending activities. The City's cash and investments at June 30, 2002 are as follows: Unrestricted cash and investments $ 61,180,505 Restricted cash and investments 1,581,347 Total Cash and Investments $ 62,761,852 The cash and investments are aggregated as follows: Deposits $ 802,455 Petty cash 1,100 Investments 61,958,297 Total Cash and Investments $ 62,761,852 The City's deposits at June 30, 2002 are categorized in the following table: BANK BALANCE- CATEGORY BANK CARRYING 1 2 3 BALANCES AMOUNTS Categorized Deposits held with banks $ 100,000 $ 1,312,678 $ 1,412,678 $ 802,455 Total $ 100,000 $ - $ 1,312,678 $ 1,412,678 $ 802,455 Category 1: Includes deposits that are insured or collateralized with securities held by the City or its agent in the City's name. Category 2: Includes deposits that are collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 3: Deposits, which are uncollateralized, or collateralized with securities held by the pledging financial institution or by its trust department or agent but not in the City's name. 14 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 NOTE#3—CASH AND INVESTMENTS(Continued) The City's investments at June 30, 2002 are categorized in the following table: CATEGORY Carrying Fair (1) (2) (3) Value Value Restricted investments Transamerica Investment Agreement 1999* $ 771,100 $ 771,100 CDC Funding Investment Agreement 2001* 584,674 584,674 Fidelity Money Market Fund * 225,573 225,573 Subtotal restricted investments 1,581,347 1,581,347 Unrestricted investments U.S. Treasuries $ 9,061,900 9,061,900 9,061,900 State Treasurer's Local Agency Investment Fund(1) * 51,312,590 51,427,403 Common Stock-Disney 2,460 2,460 2,460 Subtotal unrestricted investments 9,064,360 60,376,950 60,491,763 Total investments $ 9,064,360 $ - $ - $61,958,297 $62,073,110 * Not required to be categorized. Category 1: Includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2: Includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3: Includes uninsured and unregistered investments for which securities are held by the counterparty's trust department or agent but not in the City's name. (1) 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, 2002, the carrying amount of the pool was $47,719,552,487 and the estimated market value for the pool (including accrued interest) was $48,082,558,173. The City's proportionate share of that value is $51,312,590. Included in LAIF's investment portfolio are certain derivative securities or similar products in the form of structured notes totaling $551,578,000, and asset-backed securities totaling $921,063,000. LAIF's (and the City's) exposure to risk(credit, market or legal) is not currently available. 15 CITY OF MOORPARK NOTES TO]FINANCIAL STATEMENTS JUNE 30, 2002 NOTE#3—CASH AND INVESTMENTS(Continued) Fair Value of Investments Accounting pronouncement GASB Statement No. 31 generally applies to investments in external investment pools, investments purchased with maturities greater than one year, mutual funds, and certain investment pools. 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. State of California State Treasurer's Local Agency Investment Fund (LAW): The City holds an investment in LATE 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 LAW. The City relied upon information provided by the State Treasurer in estimating the City's fair value position of its holding in LAW. The City had a contractual withdrawal value of$51,312,590 whose pro-rata share of fair value was estimated by the State Treasurer to be $51,427,403. The fair value change in this investment for the year came to an amount that was not material for presentation in the financial statements. The State Treasurer's Local Agency Investment Fund("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 oversight to the management of the fund. The daily operations and responsibilities of LAW fall under the auspices of the State Treasurer's office. The City is a voluntary participant in the investment pool. NOTE#4—LONG-TERM DEBT The following is a schedule of changes in long-term debt for the fiscal year ended June 30, 2002: Balance Balance Beginning of End of Year Additions Deletions Year A. Employee compensated absences payable $ 232,535 $ 43,756 $ 276,291 B. 1999 Tax Allocation Bonds 9,195,000 $ 355,000 8,840,000 C. 2001 Tax Allocation Bonds 11,625,000 11,625,000 Totals $ 9,427,535 $ 11,668,756 $ 355,000 $20,741,291 A. Employee Compensated Absences Payable In accordance with accounting principles generally accepted in the United States of America, the City recognizes the long-term portion of accumulated employee compensated absences in the Long-Term Debt Account Group. 16 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 NOTE#4—LONG-TERMDEBT(Continued) B. 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: Fiscal Year Ending June 30, Principal Interest Total 2003 $ 365,000 $ 396,124 $ 761,124 2004 380,000 382,710 762,710 2005 395,000 368,368 763,368 2006 405,000 353,065 758,065 2007 425,000 336,667 761,667 Thereafter 6,870,000 2,190,268 9,060,268 Total $8,840,000 $4,027,202 $12,867,202 Redemption Redemption Dates Price October 1, 2003 and April 1, 2004 102% October 1, 2004 and April 1, 2005 101% October 1, 2005 and Thereafter 100% 17 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2002 NOTE#4 -LONG-TERM DEBT(Continued) C. 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. Fiscal Year Ending June 30, Principal Interest Total 2003 $ 593,430 $ 593,430 2004 $ 15,000 591,573 606,573 2005 10,000 591,216 601,216 2006 15,000 590,819 605,819 2007 15,000 590,309 605,309 Thereafter 11,570,000 11,209,720 22,779,720 Total $11,625,000 $14,167,066 $ 25,792,066 Redemption Redemption Dates Price October 1, 2012 and September 30, 2013 102% October 1, 2013 and September 30, 2014 101% October 1, 2014 and Thereafter 100% 18 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 NOTE#5—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 provides for the Agency to retain 100 percent of the County Taxing Entities share (55.82 percent) of annual tax increment revenues up to $1,750,000. For annual tax increment revenue in excess of$1,750,000, the Agency shall distribute 55.85 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 reasonable 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. Additionally, the agreement calls for the Agency to make a one-time $750,000 payment to the School District as a contribution to a new School District maintenance facility, at a future date. Under a separate agreement between the City and the MUSD, all of the School District's share of tax increment revenues shall be payable to the City until one- half of the cost of tennis courts constructed in AUPC has been paid. As of June 30, 2002, the remaining balance of the payable was withheld from the School District share of tax increment. 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. 19 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 NOTE#6—RETIREMENT PLAN A. Plan Description The City of Moorpark'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 of Moorpark is 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 CaIPERS Board of Administration. The required employer contribution rate for the fiscal year ended June 30, 2002, was zero 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. 20 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 NOTE#6—RETIREMENT PLANS(Continued) C. Annual Pension Cost For the year ended June 30, 2002, the City of Moorpark's annual pension cost and its actual contributions were zero. Also, contributions made directly from employees were zero,but on behalf of the employees the City contributed a total of $194,055. The required contribution for the year ended June 30, 2002, was determined as part of the June 30,2000, 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, 1999, was three years. Three-Year Trend Information Annual Pension Cost Percentage of APC Net Pension Fiscal Year Ending (APC) Contributed Obligation 6/30/2000 $18,373 100% $0 6/30/2001 $2,104 100% $0 6/30/2002 $0 100% $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 6/30/1999 $3,105,530 $4,399,396 ($1,293,866) 141.7% $2,067,768 (62.57)% 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)% 21 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 NOTE#7-INTERFUND TRANSACTIONS A summary of operating transfers and interfund receivables/payables as of and for the year ended June 30, 2002, is included in the following table: Operating Operating Due From Due To Transfers In Transfers Out Other Funds Other Funds General Fund $ 802,669 $ 922,141 $ 167,580 Special Revenue Funds Community Development Fund 351,401 State Gas Tax Fund 76,754 $ 275,308 Endowment 76,910 Local Transportation Fund 54,600 Assessment District Fund 573,940 246,298 47,306 Park Development 4,496 Areas of Contribution Fund 42,461 Low-and Moderate-Income Housing Fund 529,203 152,727 112,726 State and Federal Assistance 21,263 3,844 Solid Waste 34,989 Total Special Revenue Funds 1,107,639 1,016,942 42,461 439,184 Capital Projects Funds Redevelopment Agency Fund 275,308 46,165 Equipment Replacement 405,251 Total Capital Projects Fund 405,251 - 275,308 46,165 Debt Service Fund 152,727 529,203 Total $ 2,468,286 $ 2,468,286 $ 485,349 $ 485,349 NOTE#8-COMMITMENTS AND CONTINGENCIES A. Commitments The City has contracted 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 approximately$3,405,942 for the year ended June 30, 2002. 22 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 NOTE#8—COMMITMENTS AND CONTINGENCIES(Continued) B. Contingencies There are certain legal actions pending against the City which management considers incident to normal operations, some of which seek substantial monetary damages. In the opinion of management, after consultation with counsel, the ultimate resolution of such actions is not expected to have a significant effect on the financial position or the results of operations of the City. The City has received State and Federal funds for specific purposes that are subject to review by the grantor agencies. Although, such audits could generate expenditure disallowances under the terms of the grants, it is believed that any disallowed amounts will not be material. 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. Dai Ichi Kangyo Bank of California serves as the Trustee for these bonds. The unpaid principal balance on such bonds is$6,795,000 at June 30, 2002. 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, 2002, total $15,040,000. 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 general-purpose financial statements. 23 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2002 NOTE#10—SPECIAL ASSESSMENT BONDS 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 general-purpose financial statements. The unpaid principal balance on such bonds is $1,900,000 at June 30, 2002. 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 $7,300,000 at June 30, 2002. 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. 24 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2002 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 (Authority). The Authority is composed of 84 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 9-member Executive Committee. B. Self-Insurance Programs of the Authority General Liability: Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Costs are spread to members as follows: the first $20,000 of each occurrence is charged directly to the member; costs from $20,001 to $500,000 are pooled based on a member's share of costs under$20,000; costs from $500,001 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 $500,000 per claim are pooled based on payroll. Costs in excess of$500,000 are paid by excess insurance purchased by the Authority. The excess insurance provides coverage to statutory limits. C. Purchased 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 $8,548,437. There is a $5,000 per loss deductible. 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. 25 This page left blank intentionally. CITY OF MOORPARK COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS JUNE 30, 2002 (With Comparative Totals for June 30,2001) State Traffic Community Affordable Gas Safety Development Housing Tax ASSETS Cash and Investments $ 317,033 $ 667,107 $ 690,986 $ 1,603,195 Accounts and interest receivable,net 27,831 966 861 Taxes receivable Notes and loans receivable 297,371 Due from other funds Other assets Land held for resale Total Assets $ 344,864 $ 668,073 $ 988,357 $ 1,604,056 LIABILITIES Liabilities: Accounts payable and accrued liabilities 4,768 539,874 534 29,419 Deposits,principally from developers Due to other funds 275,308 Deferred revenue 273,566 Total Liabilities 4,768 539,874 274,100 304,727 FUND BALANCES Fund balances: Reserved for encumbrances 897 82,896 2,933 Reserved for receivables due after one year,net 23,805 Reserved for land held for resale Reserved for low/moderate income housing Undesignated 339,199 45,303 690,452 1,296,396 Total Fund Balances 340,096 128,199 714,257 1,299,329 Total Liabilities and Fund Balances $ 344,864 $ 668,073 $ 988,357 $ 1,604,056 • 26 (CONTINUED) Low and Street and Traffic State and Moderate Areas of Safety Park Assessment Federal Endowment Income Housing Contributions Development Development District Assistance $ 8,427,693 $ 1,330,099 $ 7,140,019 $ 7,319,398 $ 2,901,622 $ 1,031,242 $ 2,883,074 14,577 137,275 323,577 97,090 31,477 625,000 1,585,575 632,668 119,868 2,801 42,461 22,486 821,075 $ 9,052,693 $ 3,751,326 $ 7,952,423 $ 7,439,266 $ 2,904,423 $ 1,408,782 $ 2,980,164 54,535 43,438 430 103,687 226,481 76,531 2,927 112,726 47,306 3,844 625,000 325,625 119,868 2,801 7,324 625,000 170,188 369,063 120,298 106,488 281,111 80,375 1,400 158,296 116,696 400 7,400 1,585,575 444,317 821,075 1,173,088 8,427,693 6,980,747 7,202,272 2,797,535 1,120,271 2,899,789 8,427,693 3,581,138 7,583,360 7,318,968 2,797,935 1,127,671 2,899,789 $ 9,052,693 $ 3,751,326 $ 7,952,423 $ 7,439,266 $ 2,904,423 $ 1,408,782 $ 2,980,164 27 This page left blank intentionally. CITY OF MOORPARK COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS (CONTINUED) NNE 30,2002 (With Comparative Totals for June 30,2001) Local TOTALS Transportation Solid Transit Waste 2002 2001 ASSETS Cash and Investments $ 178,005 $ 755,329 $ 35,244,802 $ 32,992,734 Accounts and interest receivable,net 229,974 17,032 849,183 766,601 Taxes receivable 31,477 22,417 Notes and loans receivable 3,263,283 785,119 Due from other funds 42,461 42,461 Other assets 22,486 Land held for resale 821,075 1,744,256 Total Assets $ 407,979 $ 772,361 $ 40,274,767 $ 36,353,588 LIABILITIES Liabilities: Accounts payable and accrued liabilities 307,059 7,657 1,394,413 2,877,899 Deposits,principally from developers 2,927 25,000 Due to other funds 439,184 218,461 Deferred revenue 100,920 1,455,104 498,599 Total Liabilities 407,979 7,657 3,291,628 3,619,959 FUND BALANCES Fund balances: Reserved for encumbrances 301,054 20,000 691,972 540,936 Reserved for receivables due after one year,net 2,053,697 747,117 Reserved for land held for resale 821,075 1,744,256 Reserved for low/moderate income housing 1,173,088 1,832,626 Undesignated (301,054) 744,704 32,243,307 27,868,694 Total Fund Balances 764,704 36,983,139 32,733,629 Total Liabilities and Fund Balances $ 407,979 $ 772,361 $ 40,274,767 $ 36,353,588 28 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (With Comparative Totals for the Fiscal Year Ended June 30, 2001) State Traffic Community Affordable Gas Safety Development Housing Tax REVENUES Other taxes $ 552,240 Utility franchise fees Building and safety fees $ 851,914 Maintenance assessments Subventions and grants 495 1,438 Planning and public works fees 1,491,350 Development fees Charges for current services $ 1,000 190 Fines and forfeitures $ 145,828 Interest 10,087 24,103 60,056 Other 22,644 1,091 Total Revenues 155,915 2,343,759 47,747 615,015 EXPENDITURES Current: Public safety 31,196 Public services 53,547 2,122,927 13,991 695,973 Parks and recreation Capital outlay 4,631 341,524 Total Expenditures 84,743 2,127,558 13,991 1,037,497 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 71,172 216,201 33,756 (422,482) OTHER FINANCING SOURCES(USES) Operating transfers in Proceeds from sale of city property Loss from sale of city property Operating transfers out (353,401) (76,754) Total Other Financing Sources(Uses) (353,401) (76,754) EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 71,172 (137,200) 33,756 (499,236) Fund Balances,Beginning of Year 268,924 265,399 680,501 1,798,565 Prior Period Adjustment Fund Equity Transfer/Residual Equity Transfer Fund Balances,End of Year $ 340,096 $ 128,199 $ 714,257 $ 1,299,329 29 (CONTINUED) Low and Street and Traffic State and Moderate Areas of Safety Park Assessment Federal Endowment Income Housing Contributions Development Development District Assistance $ 847,858 $ 937,977 $ 1,169,590 $ 1,966,782 95,044 $ 1,236,160 $ 966,879 43,257 526 1,475 48,677 295,278 $ 108,890 261,263 246,443 112,502 23,173 91,967 99,019 500,206 12,834 4,640 1,262,157 207,909 1,747,628 1,184,946 1,296,401 2,043,272 1,328,127 179,804 701,382 6,281 18,217 828,610 47,713 4,680 890,125 5,971 1,309,514 43,556 506,671 61,707 349,211 707,353 1,315,795 61,773 511,351 1,780,442 576,728 1,262,157 (499,444) 431,833 1,123,173 785,050 262,830 751,399 529,203 4,496 573,940 5,100 (7,780) (76,910) (152,727) (246,298) (21,263) (76,910) 373,796 4,496 327,642 (21,263) 1,185,247 (125,648) 431,833 1,123,173 789,546 590,472 730,136 7,242,446 3,706,786 7,151,527 6,195,795 2,008,389 537,199 2,169,653 $ 8,427,693 $ 3,581,138 $ 7,583,360 $ 7,318,968 $ 2,797,935 $ 1,127,671 $ 2,899,789 30 This page left blank intentionally. CITY OF MOORPARK COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES (CONTINUED) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (With Comparative Totals for the Fiscal Year Ended June 30, 2001) Local TOTALS Transportation Solid Transit Waste 2002 2001 REVENUES Other taxes $ 552,240 $ 662,865 Utility franchise fees $ 209,262 209,262 202,402 Building and safety fees 851,914 924,610 Maintenance assessments 4,922,207 6,132,478 Subventions and grants $ 613,970 17,582 1,964,689 1,346,265 Planning and public works fees 1,491,350 1,321,470 Development fees 966,879 2,181,308 Charges for current services 26,979 122,104 43,302 Fines and forfeitures 145,828 155,635 Interest 4,633 26,034 1,264,429 1,875,778 Other 640,434 26,685 Total Revenues 645,582 252,878 13,131,336 14,872,798 EXPENDITURES Current: Public safety 211,000 48,675 Public services 161,630 4,650,271 3,873,836 Parks and recreation 304,650 1,199,455 1,011,300 Capital outlay 286,332 2,909,117 4,771,982 Total Expenditures 590,982 161,630 8,969,843 9,705,793 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 54,600 91,248 4,161,493 5,167,005 OTHER FINANCING SOURCES(USES) Operating transfers in 1,107,639 1,217,939 Proceeds from sale of city property 5,100 7,980 Loss from sale of city property (7,780) (15,000) Operating transfers out (54,600) (34,989) (1,016,942) (963,418) Total Other Financing Sources(Uses) (54,600) (34,989) 88,017 247,501 EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 56,259 4,249,510 5,414,506 Fund Balances,Beginning of Year 708,445 32,733,629 27,172,539 Prior Period Adjustment 100,502 Fund Equity Transfer/Residual Equity Transfer 46,082 Fund Balances,End of Year $ - $ 764,704 $ 36,983,139 $ 32,733,629 31 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 Traffic Community Safety Development Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES Other taxes Utility franchise fees Building and safety fees $ 1,451,760 $ 851,914 $ (599,846) Maintenance assessments Subventions and grants 495 495 Planning and public works fees 2,887,316 1,491,350 (1,395,966) Development fees Charges for current services Fines and forfeitures $ 140,000 $ 145,828 $ 5,828 Interest 14,200 10,087 (4,113) Other 100 (100) Total Revenues 154,300 155,915 1,615 4,339,076 2,343,759 (1,995,317) EXPENDITURES Current: Public safety 46,852 31,196 15,656 Public services 61,470 53,547 7,923 3,777,424 2,122,927 1,654,497 Parks and recreation Capital outlay 6,814 4,631 2,183 Total Expenditures 108,322 84,743 23,579 3,784,238 2,127,558 1,656,680 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 45,978 71,172 25,194 554,838 216,201 (338,637) OTHER FINANCING SOURCES(USES) Operating transfers in Proceeds from sale of city property Loss from sale of city property Operating transfers out 5353,401) (353,401) Total Other Financing Sources(Uses) (353,401) (353,401) EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ 45,978 71,172 $ 25,194 $ 201,437 (137,200) $ (338,637) Fund Balances,Beginning of Year 268,924 265,399 Fund Balances,End of Year $ 340,096 $ 128,199 32 (CONTINUED) State Affordable Gas Housing Tax Endowment Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 612,000 $ 552,240 $ (59,760) 1,438 1,438 $ 835,044 $ 966,879 $ 131,835 $ 1,000 $ 1,000 190 190 $ 28,900 24,103 (4,797) 90,800 60,056 (30,744) 397,200 295,278 (101,922) 22,644 22,644 1,091 1,091 28,900 47,747 18,847 702,800 615,015 (87,785) 1,232,244 1,262,157 29,913 56,135 13,991 42,144 831,486 695,973 135,513 422,664 341,524 81,140 56,135 13,991 42,144 1,254,150 1,037,497 216,653 (27,235) 33,756 60,991 (551,350) (422,482) 128,868 1,232,244 1,262,157 29,913 (76,754) (76,754) (225,403) (76,910) 148,493 (76,754) (76,754) (225,403) (76,910) 148,493 $ (27,235) 33,756 $ 60,991 $ (628,104) (499,236) $ 128,868 $ 1,006,841 1,185,247 $ 178,406 680,501 1,798,565 7,242,446 $ 714,257 $ 1,299,329 $ 8,427,693 33 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 Low and Moderate Areas of Income Housing Contributions Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES Other taxes Utility franchise fees Building and safety fees Maintenance assessments $ 1,077,118 $ 847,858 $ (229,260) Subventions and grants 95,044 95,044 Planning and public works fees Development fees Charges for current services 43,257 43,257 Fines and forfeitures Interest $ 75,000 $ 108,890 $ 33,890 608,300 261,263 (347,037) Other 97,200 99,019 1,819 500,206 500,206 Total Revenues 172,200 207,909 35,709 1,685,418 1,7472628 62,210 EXPENDITURES Current: Public safety Public services 1,167,201 701,382 465,819 80,000 6,281 73,719 Parks and recreation Capital outlay 226,292 5,971 220,321 8,445,940 1,309,514 7,136,426 Total Expenditures 1,393,493 707,353 686,140 8,525,940 1,315,795 7,210,145 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (1,221,293) (499,444) 721,849 (6,840,522) 431,833 7,272,355 OTHER FINANCING SOURCES(USES) Operating transfers in 542,000 529,203 (12,797) Proceeds from sale of city property 5,100 5,100 Loss from sale of city property (7,780) (7,780) Operating transfers out (152,737) (152,727) 10 Total Other Financing Sources(Uses) 394,363 373,796 (20,567) EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $(826,930) (125,648) $ 701,282 $ (6,840,522) 431,833 $ 7,272,355 Fund Balances,Beginning of Year 3,706,786 7,151,527 Fund Balances,End of Year $ 3,581,138 $ 7,583,360 34 (CONTINUED) Street and Traffic Safety Park Assessment Development Development District Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 1,705,172 $ 937,977 $ (767,195) $ 1,114,589 $ 1,169,590 $ 55,001 $ 1,977,284 $ 1,966,782 $ (10,502) 526 526 1,475 1,475 48,677 48,677 1,000 (1,000) 329,800 246,443 (83,357) 97,600 112,502 14,902 19,455 23,173 3,718 13,000 12,834 (166) 4,640 4,640 2,034,972 1,184,946 (850,026) 1,225,189 1,296,401 71,212 1,997,739 2,043,272 45,533 18,217 (18,217) 2,545,250 828,610 1,716,640 1,300 4,680 (3,380) 890,125 (890,125) 242,267 43,556 198,711 1,178,428 506,671 671,757 88,571 61,707 26,864 242,267 61,773 180,494 1,179,728 511,351 668,377 2,633,821 1,780,442 853,379 1,792,705 1,123,173 (669,532) 45,461 785,050 739,589 J636,082) 262,830 898,912 4,496 4,496 804,827 573,940 (230,887) (241,802) (246,298) (4,496) 4,496 4,496 563,025 327,642 (235,383) $ 1,792,705 1,123,173 $ (669,532) $ 45,461 789,546 $ 744,085 $ (73,057) 590,472 $ 663,529 6,195,795 2,008,389 537,199 $ 7,318,968 $ 2,797,935 $ 1,127,671 35 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 State and Local Federal Transportation Assistance Transit Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES Other taxes Utility franchise fees Building and safety fees Maintenance assessments Subventions and grants $ 3,005,805 $ 1,236,160 $ (1,769,645) $ 766,394 $ 613,970 $ (152,424) Planning and public works fees Development fees Charges for current services 26,979 26,979 Fines and forfeitures Interest 203,900 91,967 (111,933) 9,000 4,633 (4,367) Other Total Revenues 3,209,705 1,328,127 (1,881,578) 775,394 645,582 (129,812) EXPENDITURES Current: Public safety 178,606 179,804 (1,198) Public services 149,506 47,713 101,793 Parks and recreation 319,794 304,650 15,144 Capital outlay 3,242,931 349,211 2,893,720 424,600 286,332 138,268 Total Expenditures 3,571,043 576,728 2,994,315 744,394 590,982 153,412 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (361,338) 751,399 1,112,737 31,000 54,600 23,600 OTHER FINANCING SOURCES(USES) Operating transfers in 18,000 (18,000) Proceeds from sale of city property Loss from sale of city property Operating transfers out (21,263) (21,263) (72,600) (54,600) 18,000 Total Other Financing Sources(Uses) (3,263) (21,263) (18,000) (72,600) (54,600) 18,000 EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ (364,601) 730,136 $ 1,094,737 $ (41,600) $ 41,600 Fund Balances,Beginning of Year 2,169,653 Fund Balances,End of Year $ 2,899,789 $ - 36 Solid Waste Total Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 612,000 $ 552,240 $ (59,760) $ 205,300 $ 209,262 $ 3,962 205,300 209,262 3,962 1,451,760 851,914 (599,846) 5,874,163 4,922,207 (951,956) 20,288 17,582 (2,706) 3,792,487 1,964,689 (1,827,798) 2,887,316 1,491,350 (1,395,966) 835,044 966,879 131,835 122,104 122,104 141,000 145,828 4,828 32,500 26,034 (6,466) 1,906,655 1,264,429 (642,226) 110,300 640,434 530,134 258,088 252,878 (5,210) 17,816,025 13,131,336 (4,684,689) 226,763 226,763 452,221 211,000 241,221 161,630 (161,630) 8,668,472 4,650,271 4,018,201 321,094 1,199,455 (878,361) 14,278,507 2,909,117 11,369,390 226,763 161,630 65,133 23,720,294 8,969,843 14,750,451 31,325 91,248 59,923 (5,904,269) 4,161,493 10,065,762 1,364,827 1,107,639 (257,188) 5,100 5,100 (7,780) (7,780) (34,989) (34,989) (1,178,949) (1,016,942) 162,007 (34,989) (34,989) 190,978 88,017 (102,961) $ (3,664) 56,259 $ 59,923 $ (5,713,291) 4,249,510 $ 9,962,801 708,445 32,733,629 $ 764,704 $36,983,139 37 CITY OF MOORPARK COMBINING BALANCE SHEET ALL CAPITAL PROJECTS FUNDS JUNE 30,2002 (With Comparative Totals for June 30, 2001) City Hall Police Facilities Equipment Redevelopment Building Fee Fund Replacement Agency ASSETS Cash and Investments $ 614,944 $ 1,269,966 $ 451,144 $ 9,546,716 Accounts and interest receivable,net 118,257 Notes and loans receivable 3,444,704 Due from other funds 275,308 Other assets 11,120 Land held for resale 990,622 Total Assets $ 614,944 $ 1,269,966 $ 451,144 $ 14,386,727 LIABILITIES Liabilities: Accounts payable and accrued liabilities 79,402 Deposits,principally from developers 8,883 Due to other funds 46,165 Total Liabilities 134,450 FUND BALANCES Fund balances and other credits: Investment in general fixed assets Fund balances: Reserved for AB939 Reserved for unpaid grants Reserved for encumbrances 267 Reserved for receivables due after one year,net 3,444,704 Reserved for land held for resale 990,622 Designated for business incentives Undesignated 614,944 1,269,966 450,877 9,816,951 Total Fund Balances 614,944 1,269,966 451,144 14,252,277 Total Liabilities and Fund Balances $ 614,944 $ 1,269,966 $ 451,144 $ 14,386,727 38 TOTALS 2002 2001 $ 11,882,770 $ 3,796,933 118,257 76,006 3,444,704 3,493,320 275,308 11,120 10,590 990,622 990,622 $ 16,722,781 $ 8,367,471 79,402 349,077 8,883 4,045 46,165 484,761 134,450 837,883 267 3,444,704 3,493,320 990,622 990,622 233,678 12,152,738 2,811,968 16,588,331 7,529,588 $ 16,722,781 $ 8,367,471 39 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES ALL CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 (With Comparative Totals for the Fiscal Year Ended June 30, 2001) City Hall Police Facilities Equipment Redevelopment Building Fee Fund Replacement Agency REVENUES Maintenance assessments $ 153,850 Interest $ 19,855 42,100 $ 12,887 $ 274,839 Other 130,000 135,497 Total Revenues 149,855 195,950 12,887 410,336 EXPENDITURES Current: General government 141 Public safety Public services 471,221 Capital outlay 97,621 1,547,518 Total Expenditures 141 97,621 2,018,739 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 149,855 195,809 (84,734) (1,608,403) OTHER FINANCING SOURCES(USES) Operating transfers in 405,251 Proceeds from bond issuance 10,000,965 Operating transfers out Total Other Financing Sources(Uses) 405,251 10,000,965 EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 149,855 195,809 320,517 8,392,562 Fund Balances,Beginning of Year 465,089 1,074,157 130,627 5,859,715 Prior Period Adjustment Fund Balances,End of Year $ 614,944 $ 1,269,966 $ 451,144 $ 14,252,277 40 117 88S`6ZS`L $ I££`885`91 $ O170`17££ 9Z1`£6£`6 88S`6ZS`L (8LS`L61`Z) £bL`8S0`6 (9IZ`L£L) 9IZ`9017`01 (9IZ`L£L) S96'000'01 l SZ`S0b (Z9£`091/I) (£L17`Lb£`I) SZti`£ti£`Z I05`911`Z ZII`bti0`Z 6£1`5179`1 IL6`b6Z IZZ`lLI7 I LZ ILO`b Ibi £90`£88 SZO`69L SZ8`66 L617`59Z OL 1`0£5 I89`617£ 890`£SZ $ 0S8`£SI $ 100Z ZOOZ S'IT,LO.L CITY OF MOORPARK STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL ALL CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 City Hall Police Facilities Building Fee Fund Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES Maintenance assessments $ 295,474 $ 153,850 $ (141,624) Interest $ 23,800 $ 19,855 $ (3,945) 57,000 42,100 (14,900) Other 130,000 130,000 Total Revenues 153,800 149,855 (3,945) 352,474 195,950 (156,524) EXPENDITURES Current: General government 515,000 141 514,859 Public services Capital outlay Total Expenditures 515,000 141 514,859 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 153,800 149,855 (3,945) (162,526) 195,809 358,335 OTHER FINANCING SOURCES(USES) Operating transfers in Proceeds from bond issuance Total Other Financing Sources(Uses) EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ 153,800 149,855 $ (3,945) $ (162,526) 195,809 $ 358,335 Fund Balances,Beginning of Year 465,089 1,074,157 Fund Balances,End of Year $ 614,944 $ 1,269,966 42 Equipment Redevelopment Replacement Agency Total Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 295,474 $ 153,850 $ (141,624) $ 13,800 $ 12,887 $ (913) $ 115,000 $ 274,839 $ 159,839 209,600 349,681 140,081 272,000 135,497 (136,503) 402,000 265,497 (136,503) 13,800 12,887 (913) 387,000 410,336 23,336 907,074 769,028 (138,046) 515,000 141 514,859 359,254 471,221 (111,967) 359,254 471,221 (111,967) 117,700 97,621 20,079 2,253,429 1,547,518 705,911 2,371,129 1,645,139 725,990 117,700 97,621 20,079 2,612,683 2,018,739 593,944 3,245,383 2,116,501 1,128,882 (103,900) (84,734) 19,166 (2,225,683) (1,608,403) 617,280 (2,338,309) (1,347,473) 990,836 401,700 405,251 3,551 401,700 405,251 3,551 10,000,965 10,000,965 10,000,965 10,000,965 401,700 405,251 3,551 10,000,965 10,000,965 10,402,665 10,406,216 3,551 $ 297,800 320,517 $ 22,717 $ 7,775,282 8,392,562 $ 617,280 $ 8,064,356 9,058,743 $ 994,387 130,627 5,859,715 7,529,588 $ 451,144 $ 14,252,277 $ 16,588,331 43 CITY OF MOORPARK STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND-DEVELOPER DEPOSIT FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Balance Net Net Balance Fund Name June 30, 2001 Additions Reductions June 30, 2002 Cash and investments $ 1,413,623 $ 552,596 $ 1,966,219 Total Assets $ 1,413,623 $ 552,596 $ - $ 1,966,219 Accounts payable 227,731 227,731 Developer deposits 1,413,623 324,865 1,738,488 Total Liabilities $ 1,413,623 $ 552,596 $ - $ 1,966,219 44 STATISTICAL SECTION CITY OF MOORPARK REVENUES BY SOURCE ALL GOVERNMENTAL FUND TYPES LAST TEN FISCAL YEARS Taxes and Licenses Revenue Use of Fiscal Assessments Permits and From Other Maintenance Money& Other Total Year (See Note 1) Fees Agencies Assessments Property Revenue Revenue 1993 $ 3,937,065 $ 3,157,288 $ 951,352 $ 1,811,483 $ 1,316,507 $ 1,916,469 $ 13,090,164 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 7,162,651 6,352,828 2,102,594 5,076,057 2,208,850 2,191,706 25,094,686 Governmental Fund types includes General Fund and all Special Revenue, Debt Service and Capital Project Funds. NOTE: 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 45 CITY OF MOORPARK EXPENDITURES BY FUNCTION ALL GOVERNMENTAL FUND TYPES LAST TEN FISCAL YEARS Fiscal General Public Public Parks& Capital Debt Year Government Safety Services Recreation Outlay Service Total 1993 $ 1,251,186 $ 2,220,034 $ 2,609,431 $ 706,997 $ 3,714,679 $ 126,414 $ 10,628,741 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 6,962,489 1,921,588 4,789,732 1,125,529 20,513,559 Governmental Fund Types include General Fund and all Special Revenue, Debt Service and Capital Projects Funds. Source: City of Moorpark 46 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 1993 $ 1,674,603,922 $ 57,669,820 $ 1,732,273,742 5.2% $ 33,507,656 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 Source: Ventura County Assessor 47 CITY OF MOORPARK SECURED TAX CHARGE AND DELINQUENCIES MOST RECENT FIVE YEAR HISTORY Amount Percent Fiscal Secured Delinquent Delinquent Year Tax Charge June 30 June 30 1998 1,191,918 21,807 1.8% 1999 1,374,741 25,687 1.9% 2000 1,410,082 25,054 1.8% 2001 1,573,688 67,292 4.3% 2002 1,832,673 29,778 1.6% Source: California Municipal Statistics, Inc. 48 CITY OF MOORPARK DIRECT AND OVERLAPPING BONDED DEBT AS OF FISCAL YEAR 2001-2002* 2001-2002 Assessed Valuation: $ 2,685,810,036 Redevelopment Incremental Valuation: 260,866,507 Adjusted Assessed Valuation: $ 2,424,943,529 Percent Debt Direct and Overlapping Tax and Assessment Debt: Applicable as 6/30/02 Ventura County Flood Control District Zone No. 3 8.039% $ 46,224 Metropolitan Water District 0.229% 1,152,042 Conejo Valley Unified School District 0.027% 18,203 Moorpark Unified School District 92.311% 20,382,893 City of Moorpark 100.000% 0 City of Moorpark Community Facilities District No. 97-1 100.000% 7,300,000 City of Moorpark 1915 Act Bonds 100.000% 1,900,000 Total Direct and Overlapping Tax&Assessment Debt $30,799,362 Overlapping General Fund Obligation Debt: 4.255% $ 3,714,402 Ventura County General Fund Obligations 4.255% 4,390,309 Ventura County Pension Obligations 4.255% 92,334 Ventura County Superintendent of Schools COPS 4.256% 470,501 Ventura County Community College District COPS 92.311% 4,643,243 Ventura County Library District Authority 6.921% 13,842 Total Overlapping General Fund Obligation Debt $13,324,631 Combined Total Debt* $44,123,993 Ratios to 2001-2002 Assessed Valuation: Direct Debt 0.00% Total Direct and Overlapping Tax&Assessment Debt 1.15% Ratio to Adjusted Assessed Valuation Combined Total Debt 1.82% State School Building Aid Repayable as of 6/30/02 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. 49 CITY OF MOORPARK COMPUTATION OF LEGAL DEBT MARGIN AND BREAKDOWN OF GENERAL PROPERTY TAX LEVY Legal Debt Margin as of June 30, 2002 Assessed Valuation: Secured property assessed value: $ 2,549,782,519 Bonded Debt Limit(15%of Assessed Value) $ 382,467,378 Amount of Debt Subject to Debt Limit Total Bonded Debt $ 20,465,000 Less CRA Tax Allocation Bonds 20,465,000 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 50 CITY OF MOORPARK CITY POPULATION LAST TEN YEARS Percent Year Population Change 1993 26,713 1.6% 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% Source: City of Moorpark,and State Department of Finance 51 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 1993 $ 9,182,124 326 $ 7,488,066 50 $ 16,670,190 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 Source: City of Moorpark 52 CITY OF MOORPARK LARGEST PROPERTY OWNERS PER ASSESSED VALUATION 2002 Assessed Value of Property Owner Property Autosafe Airbag Limited Partnership $ 78,197,247 Security Capital Pacific Trust 31,646,026 Kavlico Corporation, A C-Mac Company 24,486,100 Toll California Limited Partnership 21,175,377 Laars Inc. 20,233,185 G-S Partnership 18,270,520 Calabasas BCD Inc. 16,529,990 Richmond American Homes California 15,924,485 James Birkenshaw, et.al., Lessor 15,344,223 Augusta Homes 13,484,000 Source: Hdl Coren&Cone and Ventura County Assessor 53 CITY OF MOORPARK MISCELLANEOUS STATISTICS Year of Incorporation: 1983 Parks&Recreation: Number of Parks 15 Form of Government: Council-Manager Park Acreage 160 acres General Law City Most Recent Population Estimate: 33,760 Education(Number of Schools): High Schools 3 Registered Voters: 16,005 Middle Schools 2 Elementary Schools 6 City Employees: 102 Number of Community Facilities Fire Protection: City Civic Buildings 1 Number of Stations: 2 Libraries 1 Number of Firefighters: 7 Community Centers 2 Senior Centers 1 Police Protection: Gym 1 Number of Stations: 1 Activity Rooms for Rentals 4 Number of Police Officers: 24 Number of Support Personnel: 2 54