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HomeMy WebLinkAboutACFR 2001 CITY OF MOORPARK MOORPARK, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year July 1, 2000 through June 30, 2001 CITY OF MOORPARK ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30,2001 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 30 Combining Statement of Revenues, Expenditures and Changes In Fund Balances 33 Combining Statement of Revenues,Expenditures and Changes In Fund Balances —Budget and Actual 36 All Capital Projects Funds Combining Balance Sheet 42 Combining Statement of Revenues,Expenses and Changes In Fund Balances 44 Combining Statement of Revenues,Expenditures and Changes In Fund Balance -Budget and Actual 46 Agency Fund—Developer Deposit Fund Statement of Changes in Assets and Liabilities 48 CITY OF MOORPARK ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2001 CONTENTS (Continued) PAGE STATISTICAL SECTION Revenues by Source—All Governmental Fund Types—Last Ten Fiscal Years 49 Expenditures by Function—All Governmental Fund Types—Last Ten Fiscal Years 50 Assessed Value of Taxable Property—Last Ten Fiscal Years 51 Secured Tax Charge and Delinquencies—Most Recent Five Year History 52 Direct and Overlapping Bonded Debt as of Fiscal Year 1999-2000 53 Computation of Legal Debt Margin and Breakdown of General Property Tax Levy 54 City Population—Last Ten Years 55 Building Permit Valuation—Last Ten Fiscal Years 56 Largest Property Owners—Per Assessed Valuation 1998 57 Miscellaneous Statistics 58 ra Vavrinek,Trine, Day & Co., LLP VALUE THE DIFFERENCE Certified Public Accountants&Consultants 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, 2001, 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 fmancial 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 20, 2001 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. The City has not maintained complete records relating to the fixed assets of the General Fixed Asset Account Group. Accordingly, we are unable to satisfy ourselves as to the fixed assets of the General Fixed Assets Account Group amounting to$22,038,103. 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, 2001, 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. t eo Rancho Cucamonga, California November 20, 2001 2 This page left blank intentionally. CITY OF MOORPARK COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2001 (With Comparative Totals for June 30, 2000) GOVERNMENTAL FUND TYPES Special Capital Debt General Revenue Projects Service ASSETS AND OTHER DEBITS Cash and Investments $ 9,539,956 $ 32,992,734 $ 3,796,933 Restricted cash and investments $ 803,959 Accounts and interest receivable,net 593,113 766,601 76,006 10,381 Taxes receivable 239,061 22,417 24,279 Notes and loans receivable 73,623 785,119 3,493,320 Due from other funds 660,761 42,461 12,022 Long-term advance in Redevelopment Agency Other assets 4,492 10,590 Land held for resale 1,744,256 990,622 Property and equipment Amount available for debt service Amount to be provided for retirement of general long-term debt Total Assets $ 11,111,006 $ 36,353,588 $ 8,367,471 $ 850,641 LIABILITIES Liabilities: Accounts payable and accrued liabilities 439,323 2,877,899 349,077 447,332 Employees compensated absences payable Deposits,principally from developers 25,000 4,045 Due to other funds 12,022 218,461 484,761 Deferred revenue 61,205 498,599 Long-term advance from City General Fund Tax allocation bonds payable Total Liabilities 512,550 3,619,959 837,883 447,332 FUND EQUITY AND OTHER CREDITS Fund balances and other credits: Investment in general fixed assets Fund balances: Reserved for unpaid grants 5,315 Reserved for encumbrances 55,168 540,936 Reserved for receivables due after one year,net 73,531 747,117 3,493,320 Reserved for land held for resale 1,744,256 990,622 Reserved for prepaid expenditures 4,492 Reserved for debt services 403,309 Reserved for low/moderate income housing 1,832,626 Reserved for advances in Redevelopment Agency Unreserved: Designated 233,678 Undesignated 10,459,950 27,868,694 2,811,968 Total Fund Equity and Other Credits 10,598,456 32,733,629 7,529,588 403,309 Total Liabilities and Fund Equity $ 11,111,006 $ 36,353,588 $ 8,367,471 $ 850,641 The accompanying notes are an integral part of these financial statements. 3 FIDUCIARY FUND TOTALS TYPE ACCOUNT GROUPS (Memorandum Only) General General-Long Agency Fixed Assets Term Debt 2001 2000 $ 1,413,623 $ 47,743,246 $ 39,115,418 803,959 1,082,005 1,446,101 1,906,710 285,757 136,747 4,352,062 4,600,988 715,244 3,097,664 1,865,369 15,082 13,781 2,734,878 1,500,000 $ 22,038,103 22,038,103 21,221,029 $ 403,309 403,309 831,875 9,024,226 9,024,226 10,769,599 $ 1,413,623 $ 22,038,103 $ 9,427,535 $ 89,561,967 $ 86,141,185 4,113,631 2,242,136 232,535 232,535 196,105 1,413,623 1,442,668 1,518,004 715,244 3,097,664 559,804 527,206 1,865,369 9,195,000 9,195,000 9,540,000 1,413,623 9,427,535 16,258,882 18,986,484 22,038,103 22,038,103 21,221,029 5,315 49,097 596,104 263,711 4,313,968 4,415,786 2,734,878 1,500,000 4,492 3,664 403,309 831,875 1,832,626 1,570,425 1,865,369 233,678 4,249,058 41,140,612 31,184,687 22,038,103 73,303,085 67,154,701 $ 1,413,623 $ 22,038,103 $ 9,427,535 $ 89,561,967 $ 86,141,185 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 30,2001 (With Comparative Totals for the Fiscal Year Ended June 30,2000) TOTALS GOVERNMENTAL FUND TYPES (Memorandum Only) General Special Capital Debt Fund Revenue Projects Service 2001 2000 REVENUES Property taxes $ 1,961,855 $2,541,900 $ 4,503,755 $ 3,692,893 Sales taxes 1,869,411 1,869,411 1,809,428 Other taxes $ 662,865 662,865 596,716 Motor vehicle license fees 1,656,722 1,656,722 1,488,473 Utility franchise fees 668,178 202,402 870,580 846,180 Building and safety fees 924,610 924,610 453,189 Maintenance assessments 6,132,478 $ 253,068 6,385,546 5,147,137 Subventions and grants 342,449 1,346,265 1,688,714 2,375,920 Planning and public works fees 1,321,470 1,321,470 1,456,613 Development fees 2,181,308 2,181,308 133,543 Charges for current services 777,792 43,302 821,094 628,527 Fines and forfeitures 113,085 155,635 268,720 230,148 Interest 540,914 1,875,778 530,170 41,058 2,987,920 2,384,356 Other 121,316 26,685 99,825 247,826 88,120 Total Revenues 8,051,722 14,872,798 883,063 2,582,958 26,390,541 21,331,243 EXPENDITURES Current: General government 1,597,567 4,071 1,601,638 1,168,049 Public safety 3,781,307 48,675 271 3,830,253 3,476,781 Public services 252,934 3,873,836 294,971 613,910 5,035,651 5,070,009 Parks and recreation 840,348 1,011,300 1,851,648 1,383,146 Capital outlay 72,164 4,771,982 2,044,112 6,888,258 5,355,271 Debt service Principal 2,210,369 2,210,369 2,820,000 Interest 557,401 557,401 744,305 Total Expenditures 6,544,320 9,705,793 2,343,425 3,381,680 21,975,218 20,017,561 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 1,507,402 5,167,005 (1,460,362) (798,722) 4,415,323 1,313,682 OTHER FINANCING SOURCES(USES) Operating transfers in 822,098 1,217,939 878,536 2,918,573 1,481,809 Proceeds from sale of city property 3,704 7,980 11,684 Loss from sale of city property (15,000) (15,000) Operating transfers out (709,559) (963,418) (737,216) (508,380) (2,918,573) (1,481,809) Total Other Financing Sources(Uses) 116,243 247,501 (737,216) 370,156 (3,316) EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 1,623,645 5,414,506 (2,197,578) (428,566) 4,412,007 1,313,682 Fund Balances,Beginning of Year 8,536,132 27,172,539 9,393,126 831,875 45,933,672 44,518,954 Prior Period Adjustment 484,761 100,502 334,040 919,303 101,036 Fund Equity Transfer/Residual Equity Transfer (46,082) 46,082 Fund Balances,End of Year $ 10,598,456 $ 32,733,629 $ 7,529,588 $ 403,309 $ 51,264,982 $ 45,933,672 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, 2001 GENERAL FUND SPECIAL REVENUE FUNDS Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES Property taxes $ 1,687,000 $ 1,961,855 $ 274,855 Sales taxes 1,555,000 1,869,411 314,411 Other taxes $ 598,090 $ 662,865 $ 64,775 Motor vehicle license fees 1,521,500 1,656,722 135,222 Utility franchise fees 659,000 668,178 9,178 187,000 202,402 15,402 Building and safety fees 1,122,491 924,610 (197,881) Maintenance assessments 7,947,809 6,132,478 (1,815,331) Subventions and grants 247,200 342,449 95,249 2,213,259 1,346,265 (866,994) Planning and public works fees 1,321,470 1,321,470 Development fees 2,181,308 2,181,308 Charges for current services 660,345 777,792 117,447 1,680,054 43,302 (1,636,752) Fines and forfeitures 100,800 113,085 12,285 105,000 155,635 50,635 Interest 496,926 540,914 43,988 1,092,138 1,875,778 783,640 Other 37,500 121,316 83,816 10,300 26,685 16,385 6,965,271 8,051,722 • 1,086,451 14,956,141 14,872,798 (83,343) EXPENDITURES Current: General govemment 2,027,028 1,597,567 429,461 Public safety 3,891,476 3,781,307 110,169 274,511 48,675 225,836 Public services 372,176 252,934 119,242 4,608,110 3,873,836 734,274 Parks and recreation 1,013,901 840,348 173,553 1,206,318 1,011,300 195,018 Capital outlay 196,459 72,164 124,295 12,738,309 4,771,982 7,966,327 Debt service Principal Interest Total Expenditures 7,501,040 6,544,320 956,720 18,827,248 9,705,793 9,121,455 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (535,769) 1,507,402 2,043,171 (3,871,107) 5,167,005 9,038,112 OTHER FINANCING SOURCES(USES) Operating transfers in 801,656 822,098 20,442 872,489 1,217,939 345,450 Proceeds from sale of city property 3,704• 3,704 7,980 7,980 Loss from sale of city property (15,000) (15,000) Operating transfers out (854,489) (709,559) 144,930 (819,656) (963,418) (143,762) Total Other Financing Sources(Uses) (52,833) 116,243 169,076 52,833 247,501 194,668 EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ (588,602) 1,623,645 $ 2,212,247 $ (3,818,274) 5,414,506 $ 9,232,780 Fund Balances,Beginning of Year 8,536,132 27,172,539 Prior Period Adjustment 484,761 100,502 Fund Equity Transfer/Residual Equity Transfer (46,082) 46,082 Fund Balances,End of Year $ 10,598,456 $ 32,733,629 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) $ 1,884,800 $ 2,541,900 $ 657,100 $ 3,571,800 $ 4,503,755 $ 931,955 1,555,000 1,869,411 314,411 598,090 662,865 64,775 1,521,500 1,656,722 135,222 846,000 870,580 24,580 1,122,491 924,610 (197,881) $ 609,220 $ 253,068 $ (356,152) 8,557,029 6,385,546 (2,171,483) 2,460,459 1,688,714 (771,745) 1,321,470 1,321,470 2,181,308 2,181,308 2,340,399 821,094 (1,519,305) 205,800 268,720 62,920 527,000 530,170 3,170 61,900 41,058 (20,842) 2,177,964 2,987,920 809,956 107,000 99,825 (7,175) 154,800 247,826 93,026 1,243,220 883,063 (360,157) 1,946,700 2,582,958 636,258 25,111,332 26,390,541 1,279,209 2,400 4,071 (1,671) 2,029,428 1,601,638 427,790 10,500 271 10,229 4,176,487 3,830,253 346,234 2,575,958 294,971 2,280,987 613,910 (613,910) 7,556,244 5,035,651 2,520,593 2,220,219 1,851,648 368,571 2,252,580 2,044,112 208,468 15,187,348 6,888,258 8,299,090 2,532,572 2,210,369 322,203 2,532,572 2,210,369 322,203 911,326 557,401 353,925 911,326 557,401 353,925 4,841,438 2,343,425 2,498,013 3,443,898 3,381,680 62,218 34,613,624 21,975,218 12,638,406 (3,598,218) (1,460,362) 2,137,856 (1,497,198) (798,722) 698,476 (9,502,292) 4,415,323 13,917,615 765,300 878,536 113,236 2,439,445 2,918,573 479,128 11,684 11,684 (15,000) (15,000) (737,216) (737,216) (508,380) 508,380 (1,674,145) (2,918,573) (1,244,428) (737,216) (737,216) 765,300 370,156 621,616 765,300 (3,316) (768,616) $ (3,598,218) (2,197,578) $ 1,400,640 $ (731,898) (428,566) $ 303,332 $ (8,736,992) 4,412,007 $ 13,148,999 9,393,126 831,875 45,933,672 334,040 919,303 $ 7,529,588 $ 403,309 $ 51,264,982 7 This page left blank intentionally. CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2001 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 account groups as described below. A. Fund Types and Account Groups The accounts of the City are organized on the basis of individual funds and account groups, 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 Groups • General Fixed Assets Account Group General Fixed Assets Account Group, which is used to account for property and equipment purchased or received by the governmental fund types. 8 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2001 NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) • General Long-Term Debt Account Group General Long-Term Debt Account Group, which is used to account for unmatured long-term indebtedness of the governmental fund types. 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 fixed assets and noncurrent liabilities. Instead, these assets and liabilities are reported in the General Fixed Assets Account Group and the General Long-Term Obligations Account Group. These account groups measure only financial position; they are not funds and they do not measure results of operations. They maintain accounting control over the City's governmental fund fixed assets and City 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 maybe 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. 9 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE#1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) 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. 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. Long-term advances to the Redevelopment Agency, which total $0 at June 30,2001, are to be repaid over an indeterminate period of time, and bear simple interest at a rate of 8 percent annually. These long-term advances are fully reserved in the General Fund. In July 2000, the City Council reduced the simple interest rate to 8 percent annually. 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. 10 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) 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 Special Revenue Fund totaled $2,734,878 at June 30, 2001. Such property represents land purchased by the Agency for redevelopment purposes. Land is valued at the lower of cost or estimated net realizable value. H. Fixed Assets and Long-Term Liabilities The General Fixed Assets Account Group provides accounting control over the cost of fixed assets used by the City's governmental funds. The General Fixed Assets Account Group is not a fund and its balances are not financial resources available for expenditure. Rather, they provide an historical accounting record of resources expended on general fixed assets. Public domain (infrastructure) general fixed assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, have not been capitalized because these assets are immovable and of value only to the public. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair market value on the date donated. 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 two account groups are not funds. They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. 11 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2001 NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) 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 expenditure or liabilities. K. New Accounting Standards Governmental Accounting Standards Board(GASB)Statement Number 33 The Governmental Accounting Standards Board (GASB) has issued Statement No. 33, "Accounting and Financial Reporting for Nonexchange Transactions". The requirements of this Statement are effective for financial statements for periods beginning after June 15, 2000. The Statement establishes accounting and financial reporting standards to guide state and local governments' decisions about when to report the results of nonexchange transactions involving cash and other financial capital resources. The Statement identifies four classes of nonexchange transactions, these are: (a) derived tax revenues (for example income taxes, sales taxes, and other assessments on earning or consumption), (b) imposed nonexchange revenues (for example property taxes and fines), (c) government-mandates nonexchange transactions (for example federal programs that state or local governments are mandated to perform), (d) voluntary nonexchange transactions (for example certain grants and private donations). The implementation did not have a material effect on the financial statements of the City. 12 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2001 NOTE#1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Governmental Accounting Standards Board (GASB) Statement Number 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. 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. (Although the implementation of the infrastructure assets can be deferred until future years depending on the implementation Phase as noted above). This will be 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. L. 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. The investments under the City's 457 plan as of June 30,2001,were$1,199,716. 13 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE#1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) 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. N. Reclassifications Certain reclassifications have been made to the comparative total amounts reported in prior years in order to conform to the current year's presentation. 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 form 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. 14 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2001 NOTE#3—CASH AND INVESTMENTS(Continued) 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 As of and for the year ended June 30, 2001 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, 2001 are as follows: Unrestricted cash and investments $47,743,246 Restricted cash and investments 803,959 Total Cash and Investments $48,547,205 15 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE#3—CASH AND INVESTMENTS(Continued) The cash and investments are aggregated as follows: Deposits $ 9,186,253 Petty cash 1,100 Investments 39,359,852 Total Cash and Investments $48,547,205 The City's deposits at June 30,2001 are categorized in the following table: BANK BALANCE- CATEGORY BANK CARRYING 1 2 3 BALANCES AMOUNTS Categorized Deposits held with banks $ 100,000 $9,381,437 $ 9,481,437 $ 9,186,253 Total $ 100,000 $9,381,437 $ 9,481,437 $ 9,186,253 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 depai tinent or agent in the City" name. Category 3: Deposits, which are uncollaterlized, or collateralized with securities held by the pledging financial institution or by its trust depai twent or agent but not in the City's name. The City's investments at June 30,2001 are categorized in the following table: CATEGORY Carrying Fair (1) (2) (3) Value Value Investments held in trust by fiscal agents on behalf of the City of Moorpark(restricted assets)-investment agreement * $ 771,100 $ 771,100 Fidelity Money Market Fund* 32,859 32,859 U.S.Treasuries $5,954,828 5,953,739 5,954,828 State Treasurer's Local Agency Investment Fund(1) * 32,598,312 32,671,252 Common Stock-Disney $ 3,328 3,842 3,328 Total $ 5,958,156 $ - $ - $39,359,852 $39,433,367 * Not required to be categorized. 16 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE#3—CASH AND INVESTMENTS(Continued) 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, 2001, the carrying amount of the pool was $54,496,268,373 and the estimated market value for the pool (including accrued interest) was $55,175,428,123. The City's proportionate share of that value is $32,598,312. Included in LAIF's investment portfolio are certain derivative securities or similar products in the form of structured notes totaling $1,517,548,000, and asset-backed securities totaling $937,996,000. LAIE's (and the City's) exposure to risk(credit,market or legal)is not currently available. 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 records 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 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 it's holding in LAIF. The City had a contractual withdrawal value of$32,598,312 whose pro-rata share of fair value was estimated by the state Treasurer to be $32,671,252. 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 LAIF fall under the auspices of the State Treasurer's office. The City is a voluntary participant in the investment pool. 17 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2001 NOTE#4—LONG-TERM DEBT The following is a schedule of changes in long-term debt for the fiscal year ended June 30,2001: Balance Balance Beginning of End of Year Additions Deletions Year A. Employee compensated absences payable $ 196,105 $ 36,430 $ 232,535 B. Long-term advances from the General Fund 1,865,369 $ 1,865,369 C. 1999 Tax Allocation Bonds 9,540,000 345,000 9,195,000 Totals $11,601,474 $ 36,430 $ 2,210,369 $ 9,427,535 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. B. Advances from the General Fund The City's General Fund has paid for services and start-up expenditures incurred by the Redevelopment Agency(short-term advances). The balance of these short-term operating advances amounted to $1,865,369 at the beginning of the fiscal year and were completely repaid during the 2000-2001 fiscal year. C. 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, commending 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. 18 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2001 NOTE#4—LONG-TERM DEBT(Continued) 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 2002 $ 355,000 $ 408,638 $ 763,638 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 Thereafter 7,295,000 2,526,935 9,821,935 Total $ 9,195,000 $4,435,840 $ 13,630,840 D. Prior Year's Debt Defeasance In prior years, the City has defeased the 1993 tax allocation bond issue by creating separate irrevocable trust funds. New debt has been issued and the proceeds have been used to purchase U.S. government securities that were placed in the trust funds. The investments and fixed earnings from the investments are sufficient to fully service the defeased debt until the debt is called or matures. For financial reporting purposes, the debt has been considered defeased and therefore removed as a liability from the Agency's General Long- Term Debt Account Group. As of June 30, 2001, the amount of defeased debt outstanding but removed from the General Long-Terms Debt Account Group amounted to$8,400,000. NOTE#5—LOW-AND MODERATE-INCOME HOUSING SET ASIDE The Health and Safety Code section 33334.2 requires cities with redevelopment agencies to use at least 20 percent of tax increment revenues generated by a redevelopment project area to increase and improve the supply of low-and moderate-income housing in the community. 19 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2001 NOTE#6—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 state 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 (33.31 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 School District 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, 2001, the remaining balance of the payable was withheld from the School District share of tax increment. 20 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE#6—AGREEMENTS WITH VARIOUS TAXING AGENCIES(Continued) The fourth agreement is with the Ventura County Community College District (the "Community College District"), and states that the Community College District will receive, after the Agency has satisfied debt service payments to bond or note holders or to the holders of any other instruments of Agency indebtedness (provide such indebtedness is not reasonable foreseeable to impair the Agency's obligation under the agreement), the Community College District's share (5.80 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 1 states that the Superintendent shall receive its share 910.28 percent) of tax increment revenues generated by an annual 2 percent increase in assessed valuation. NOTE#7—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 the 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 2 percent at age 50 to a maximum of 2.7 percent at age 55 for safety employees, and 1.092 percent at age 50 to a maximum of 2.418 percent at age 63 for non-safety employees, 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. 21 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2001 NOTE#7—RETIREMENT PLANS(Continued) 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 Ca1PERS Board of Administration. The required employer contribution rate for the fiscal year ended June 30, 2001, 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. C. Annual Pension Cost For the year ended June 30, 2001, the City of Moorpark's annual pension cost and its actual contributions were $2,104. The City also contributed $177,861 on behalf of employees. Employees directly contributed $0. Total contributions were $179,965. The required contribution for the year ended June 30, 2001, was determined as part of the June 30, 1997, 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 4.5 percent to 14.95 percent and(c) 4.5 percent cost-of-living adjustments. Both(a) and(b) include an inflation component of 4.5 percent. The actuarial value of the Plan's assets were 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. The Plan's unfunded 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, 1998, was three years. Three-Year Trend Information Annual Pension Cost Percentage of APC Net Pension Fiscal Year Ending (APC) Contributed Obligation 6/30/99 $91,092 100% $0 6/30/00 $18,373 100% $0 6/30/01 $2,104 100% $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 6/30/98 $2,359,258 $3,504,389 ($1,145,131) 148.5% $2,119,784 (54.02)% 6/30/99 $3,105,530 $4,399,396 ($1,293,866) 141.7% $2,067,768 (62.57)% 6/30/00 $3,667,082 $5,053,792 ($1,386,710) 137.8% $2,291,864 (60.51)% 22 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE#8-PROPERTY AND EQUIPMENT A summary of changes in general fixed assets for the year ended June 30,2001 follows: Balance Balance Beginning of End of Year Additions Deletions Year Land $ 9,941,039 $1,859,114 $ 991,240 $ 10,808,913 Buildings and structures 3,712,775 55,532 3,657,243 Improvements other than buidlings 5,395,709 5,395,709 Office furniture and equipment 1,104,425 4,732 1,109,157 Other equipment 1,067,081 1,067,081 Totals $21,221,029 $1,863,846 $ 1,046,772 $ 22,038,103 NOTE#9-INTERFUND TRANSACTIONS A summary of operating transfers and interfund receivables/payables as of and for the year ended June 30, 2001, is included in the following table: Operating Operating Due From Due To Transfers In Transfers Out Other Funds Other Funds General Fund $ 822,098 $ 709,559 $ 660,761 $ 12,022 Special Revenue Funds Community Development fund 214,691 State Gas Tax Fund 41,033 Endowment 119,689 259,597 Local Transportation Fund 39,886 Assessment District Fund 589,870 177,937 42,461 Park Development 176,000 Areas of Contribution Fund 42,461 Low-and Moderate-Income Housing Fund 508,380 141,320 State and Federal Assistance 46,879 Solid Waste _ 42,075 Total Special Revenue Funds 1,217,939 963,418 42,461 218,461 Capital Projects Funds Redevelopment Agency Fund 737,216 484,761 Debt Service Fund 878,536 508,380 12,022 Total $ 2,918,573 $ 2,918,573 $ 715,244 $ 715,244 23 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE#10—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$3,398,539 for the year ended June 30, 2001. B. Contingencies There are certain legal actions pending against the City which management considers incident to normal operations, some of which seek substantial monetary damages. In the opinion of management, after consultation with counsel, the ultimate resolution of such actions is not expected to have a significant effect on the financial position or the results of operations of the City. The City has received State and Federal funds for specific purposes that are subject to review by the grantor agencies. Although, such audits could generate expenditure disallowance's under the terms of the grants, it is believed that any disallowed amounts will not be material. NOTE#11 —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 sponsored a revenue bond program during the year ended June 30, 1986, under which $22,600,000 of Multi-Family Housing Revenue Bonds were issued. The program was designed to assist in making low- and moderate-cost rental housing available in the City. The City was guaranteed that 10 percent of the units of the project financed with the bonds are made available to persons and families with incomes not exceeding 80 percent of the County median income and another 10 percent of the units for persons and families with income not exceeding 50 percent of the County median income. The units were available under this program for a 30- year period. These bonds were secured by a letter of credit issued by Citibank,N.A., dated December 23, 1985. The program is administered by the Trustee, Bank of America. The bonds were refinanced during the year ended June 30, 1992. These bonds were refinanced in June 1, 1999, with California Statewide Community Development Authority. The City was removed as the conduit as of June 30, 2001. 24 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE#11 —CONDUIT DEBT—REVENUE BONDS(Continued) 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 30,2001. 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, 2001, total $15,215,000. Each of the bond programs described above do not constitute and 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 therefor. 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. NOTE#12—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$1,940,000 at June 30, 2001. 25 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2001 NOTE#12—SPECIAL ASSESSMENT BONDS(Continued) 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, 2008 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$7,415,000 at June 30,2001. 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 form 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. NOTE#13—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. 26 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 NOTE#13—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 $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. • 27 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2001 NOTE#14—FUND BALANCES The Redevelopment Agency has designated $233,678 of fund balance in the Redevelopment Agency Capital Projects Fund for business incentives and future capital projects. NOTE#15—PROPOSITION 62 The California Supreme Court recently upheld the constitutionality of Proposition 62, a 1986 initiative, which requires voter approval of all new or increased taxes. The likelihood and amount of such an adverse effect upon the financial position of the City is currently unknown and has not been reflected in the general-purpose financial statements. NOTE#16—PROPOSITION 218 The voters recently approved the "Right to Vote on Taxes Act" (Proposition 218) which limits the City's ability to levy general taxes and benefit assessments without voter approval. The actual effects of Proposition 218 are unclear at this time. The initiative would also require voter approval by November 1998, to continue to collect annually in the General Fund general taxes (such as utility, transient occupancy, and the like) that are subject to the proposition requirements. NOTE#17—PRIOR PERIOD ADJUSTMENTS The agency has recorded a prior period adjustment of$(484,761) in the Capital Projects Fund to record prior year interest due to the General Fund from the Long-Term Advance from the City. The City recorded a prior period adjustment of$(171,821) in the Capital Projects Fund to record prior year pass-thru liability. The City recorded a prior period adjustment of$990,622 in the Capital Projects Fund and$45,000 in the Special Revenue Fund to record land held for resale, which had been recorded in the General Fixed Asset Account Group. The City recorded a prior period adjustment of $55,502 in the Gas Tax Fund to implement new accounting standards. 28 CITY OF MOORPARK NOTES TO FINANCIAL STATEMENTS JUNE 30,2001 NOTE#18—RESIDUAL EQUITY TRANSFERS The following residual equity transfers were due to the State Supplemental Law Enforcement Grant, which was accounted for in the General Fund now accounted for in the State and Federal Assistance Fund: Residual Equity Residual Equity Transfer In Transfer(Out) General Fund $ - $ (46,082) Special Revenue Funds: State and Federal Assistance 46,082 Total $ 46,082 $ (46,082) 29 This page left blank intentionally. CITY OF MOORPARK COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS JUNE 30, 2001 (With Comparative Totals for June 30,2000) State Traffic Community Affordable Gas Safety Development Housing Tax ASSETS Cash and Investments $ 247,703 $ 840,527 $ 644,875 $ 1,668,973 Restricted cash and investments Accounts and interest receivable,net 681 149,742 Taxes receivable Notes and loans receivable 24,332 13,670 36,121 Due from other funds Other assets Land held for resale Total Assets $ 272,035 $ 854,878 $ 680,996 $ 1,818,715 ,.' LIABILITIES Liabilities: Accounts payable and accrued liabilities 3,111 589,479 495 20,150 Deposits,principally from developers Due to other funds Deferred revenue Total Liabilities 3,111 589,479 495 20,150 FUND BALANCES Fund balances: Reserved for encumbrances 285 51,750 26,542 Reserved for receivables due after one year,net 36,121 Reserved for land held for resale Reserved for low/moderate income housing Unreserved: Designated Undesignated 268,639 213,649 644,380 1,772,023 Total Fund Balances 268,924 265,399 680,501 1,798,565 Total Liabilities and Fund Balances $ 272,035 $ 854,878 $ 680,996 $ 1,818,715 30 (CONTINUED) Low and Street and Traffic State and Moderate Areas of Safety Park Assessment Federal Endowment Income Housing Contributions Development Development District Assistance $ 7,242,446 $ 1,581,484 $ 8,308,227 $ 6,195,804 $ 2,142,964 $ 646,771 $ 2,568,945 291,230 11,677 93,444 4,664 193,899 22,417 120,549 467,778 119,868 2,801 42,461 1,744,256 $ 7,242,446 $ 3,737,519 $ 8,830,143 $ 6,315,672 $ 2,239,209 $ 673,852 $ 2,762,844 5,733 1,490,265 9 52,019 94,192 593,191 25,000 176,000 42,461 188,351 119,868 2,801 . 30,733 1,678,616 119,877 230,820 136,653 593,191 4,500 396,056 51,668 10,135 120,549 467,778 119,868 2,801 1,744,256 1,832,626 7,242,446 4,855 6,287,693 6,075,927 1,953,920 527,064 2,169,653 7,242,446 3,706,786 7,151,527 6,195,795 2,008,389 537,199 2,169,653 $ 7,242,446 $ 3,737,519 $ 8,830,143 $ 6,315,672 $ 2,239,209 $ 673,852 $ 2,762,844 31 CITY OF MOORPARK COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS JUNE 30,2001 (With Comparative Totals for June 30,2000) Local TOTALS Transportation Solid Transit Waste 2001 2000 ASSETS Cash and Investments $ 204,876 $ 699,139 $ 32,992,734 $ 25,399,887 Restricted cash and investments 263,508 Accounts and interest receivable,net 2,555 18,709 766,601 1,288,916 Taxes receivable 22,417 37,043 Notes and loans receivable 785,119 781,248 Due from other funds 42,461 2,160,752 Other assets 31 Land held for resale 1,744,256 1,500,000 Total Assets $ 207,431 $ 717,848 $ 36,353,588 $ 31,431,385 LIABILITIES Liabilities: Accounts payable and accrued liabilities 19,852 9,403 2,877,899 1,174,072 Deposits,principally from developers 25,000 26,500 Due to other funds 218,461 2,615,687 Deferred revenue 187,579 498,599 442,587 Total Liabilities 207,431 9,403 3,619,959 4,258,846 FUND BALANCES Fund balances: Reserved for encumbrances 540,936 216,830 Reserved for receivables due after one year,net 747,117 596,046 Reserved for land held for resale 1,744,256 1,500,000 Reserved for low/moderate income housing 1,832,626 1,570,425 Unreserved: Designated 109,002 Undesignated 708,445 27,868,694 23,180,236 Total Fund Balances 708,445 32,733,629 27,172,539 Total Liabilities and Fund Balances $ 207,431 $ 717,848 $ 36,353,588 $ 31,431,385 32 This page left blank intentionally. CITY OF MOORPARK COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2001 (With Comparative Totals for the Fiscal Year Ended June 30, 2000) State Traffic Community Affordable Gas Safety Development Housing _ Tax REVENUES Property taxes Other taxes $ 662,865 Utility franchise fees Building and safety fees $ 924,610 Maintenance assessments 1 Subventions and grants 12,375 Planning and public works fees 1,321,470 Development fees Charges for current services 2,230 Fines and forfeitures $ 148,886 Interest 11,858 $ 35,884 103,561 Other _ 874 Total Revenues 160,744 2,258,455 35,884 769,530 EXPENDITURES Current: General government Public safety 31,251 Public services 44,806 1,970,258 12,730 735,774 Parks and recreation Capital outlay 11,112 59,078 Total Expenditures 76,057 1,981,370 12,730 794,852 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 84,687 277,085 23,154 (25,322) OTHER FINANCING SOURCES(USES) Operating transfers in Proceeds from sale of city property 200 Loss from sale of city property Operating transfers out (214,691) (41,033) Total Other Financing Sources(Uses) (214,491) (41,033) EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 84,687 62,594 23,154 (66,355) Fund Balances,Beginning of Year 184,237 202,805 657,347 1,809,418 Prior Period Adjustment 55,502 Fund Equity Transfer/Residual Equity Transfer Fund Balances,End of Year $ 268,924 $ 265,399 $ 680,501 $ 1,798,565 33 (CONTINUED) Low and Street and Traffic State and Moderate Areas of Safety Park Assessment Federal Endowment Income Housing Contributions Development Development District Assistance $ 991,261 $ 2,533,960 $ 1,229,317 $ 1,377,940 93,444 $ 984,601 $ 2,181,308 310 15,029 1,020 3,249 3,500 390,116 $ 204,525 497,953 294,120 104,820 29,967 153,373 12,867 12,509 435 2,571,424 217,392 1,489,524 2,828,080 1,440,090 1,426,620 1,142,494 17,424 106,610 (402) 8,870818,296 43,788 5,000 222 766,655 3,163,920 46,134 121,303 55,207 1,313,937 106,610 3,163,518 60,004 121,525 1,640,158 1,375,149 2,571,424 110,782 (1,673,994) 2,768,076 1,318,565 (213,538) (232,655) 119,689 508,380 589,870 7,780 (15,000) (259,597) (141,320) (177,937) (46,879) (139,908) 352,060 7,780 411,933 (46,879) 2,431,516 462,842 (1,673,994) 2,768,076 1,326,345 198,395 (279,534) 4,810,930 3,198,944 8,825,521 3,427,719 682,044 338,804 2,403,105 45,000 46,082 $ 7,242,446 $ 3,706,786 $ 7,151,527 $ 6,195,795 $ 2,008,389 $ 537,199 $ 2,169,653 34 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2001 (With Comparative Totals for the Fiscal Year Ended June 30,2000) Local TOTALS Transportation Solid Transit Waste 2001 2000 REVENUES Property taxes $ 399,572 Other taxes $ 662,865 560,746 Utility franchise fees $ 202,402 202,402 194,497 Building and safety fees 924,610 392,106 Maintenance assessments 6,132,478 5,147,137 Subventions and grants $ 242,931 12,914 1,346,265 2,143,114 Planning and public works fees 1,321,470 1,315,327 Park development fees 2,181,308 133,543 Charges for current services 24,713 43,302 35,146 Fines and forfeitures 155,635 129,571 Interest 11,070 38,531 1,875,778 1,114,457 Other 26,685 17,073 Total Revenues 278,714 253,847 14,872,798 11,582,289 EXPENDITURES Current: General government 3,300 Public safety 48,675 57,292 Public services 133,106 3,873,836 3,468,328 Parks and recreation 239,423 1,011,300 701,175 Capital outlay 1,291 4,771,982 4,967,266 Total Expenditures 239,423 134,397 9,705,793 9,197,361 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 39,291 119,450 5,167,005 2,384,928 OTHER FINANCING SOURCES(USES) Operating transfers in 1,217,939 752,120 Proceeds from sale of city property 7,980 Loss from sale of city property (15,000) Operating transfers out (39,886) (42,075) (963,418) (133,838) Total Other Financing Sources(Uses) (39,886) (42,075) 247,501 618,282 EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES (595) 77,375 5,414,506 3,003,210 Fund Balances,Beginning of Year 595 631,070 27,172,539 24,169,329 Prior Period Adjustment 100,502 Fund Equity Transfer/Residual Equity Transfer 46,082 Fund Balances,End of Year $ - $ 708,445 $ 32,733,629 $ 27,172,539 35 This page left blank intentionally. 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 30,2001 Traffic Community Safety Development Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES Other taxes Utility franchise fees Building and safety fees $ 1,122,491 $ 924,610 $ (197,881) Maintenance assessments Subventions and grants 12,450 12,375 (75) Planning and public works fees 1,321,470 1,321,470 Development fees Charges for current services 1,647,654 (1,647,654) Fines and forfeitures $ 105,000 $ 148,886 $ 43,886 Interest 3,300 11,858 8,558 Other 100 (100) Total Revenues 108,400 160,744 52,344 2,782,595 2,258,455 (524,140) EXPENDITURES Current: General government Public safety 37,580 31,251 6,329 Public services 54,856 44,806 10,050 2,528,901 1,970,258 558,643 Parks and recreation Capital outlay 16,162 11,112 5,050 Total Expenditures 92,436 76,057 16,379 2,545,063 1,981,370 563,693 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 15,964 84,687 68,723 237,532 277,085 39,553 OTHER FINANCING SOURCES(USES) Operating transfers in Proceeds from sale of city property 200 200 Loss from sale of city property Operating transfers out (214,691) (214,691) Total Other Financing Sources(Uses) (214,691) (214,491) 200 EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ 15,964 84,687 $ 68,723 $ 22,841 62,594 $ 39,753 Fund Balances,Beginning of Year 184,237 202,805 Prior Period Adjustment Fund Equity Transfer/Residual Equity Transfer Fund Balances,End of Year $ 268,924 $ 265,399 36 (CONTINUED) State Affordable Gas Housing Tax Endowment Variance Variance Variance Favorable Favorable Favorable Budget _ Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 598,090 $ 662,865 $ 64,775 $ 698,598 $ (698,598) $ 2,181,308 2,181,308 2,230 2,230 $ 37,000 $ 35,884 $ (1,116) 78,000 103,561 25,561 360,000 390,116 30,116 874 874 37,000 35,884 (1,116) 676,090 769,530 93,440 1,058,598 2,571,424 1,512,826 14,694 12,730 1,964 768,373 735,774 32,599 143,853 59,078 84,775 14,694 12,730 1,964 912,226 794,852 117,374 22,306 23,154 848 (236,136) (25,322) 210,814 1,058,598 2,571,424 1,512,826 119,689 119,689 (41,033) (41,033) (260,000) (259,597) 403 (41,033) (41,033) (140,311) (139,908) 403 $ 22,306 23,154 $ 848 $ (277,169) (66,355) $ 210,814 $ 918,287 2,431,516 $ 1,513,229 657,347 1,809,418 4,810,930 55,502 $ 680,501 $ 1,798,565 $ 7,242,446 37 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, 2001 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 $ 1,887,008 $ 991,261 $ (895,747) Subventions and grants Planning and public works fees Park development fees Charges for current services 310 310 Fines and forfeitures Interest $ 70,000 $ 204,525 $ 134,525 254,000 497,953 243,953 Other 10,200 12,867 2,667 Total Revenues 80,200 217,392 137,192 2,141,008 1,489,524 (651,484) EXPENDITURES Current: General government Public safety Public services 130,563 106,610 23,953 (402) 402 Parks and recreation Capital outlay 484,780 484,780 8,835,012 3,163,920 5,671,092 Total Expenditures 615,343 106,610 508,733 8,835,012 3,163,518 5,671,494 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (535,143) 110,782 645,925 (6,694,004) (1,673,994) 5,020,010 OTHER FINANCING SOURCES(USES) Operating transfers in 508,380 508,380 Proceeds from sale of city property Loss from sale of city property (15,000) 15,000 Operating transfers out (141,320) 141,320 Total Other Financing Sources(Uses) 352,060 664,700 EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $(535,143) 462,842 $ 1,310,625 $ (6,694,004) (1,673,994) $ 5,020,010 Fund Balances,Beginning of Year 3,198,944 8,825,521 Prior Period Adjustment 45,000 Fund Equity Transfer/Residual Equity Transfer Fund Balances,End of Year $ 3,706,786 $ 7,151,527 38 (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) $ 3,135,001 $ 2,533,960 $ (601,041) $ 920,527 $ 1,229,317 $ 308,790 $ 1,306,675 $ 1,377,940 $ 71,265 101,000 93,444 (7,556) 15,000 15,029 29 3,249 3,249 136,700 294,120 157,420 49,600 104,820 55,220 15,750 29,967 14,217 12,509 12,509 435 435 3,271,701 2,828,080 (443,621) 1,071,127 1,440,090 368,963 1,337,425 1,426,620 89,195 8,894 8,870 24 1,071,752 818,296 253,456 5,000 5,000 10,000 222 9,778 846,361 766,655 79,706 156,061 46,134 109,927 379,812 121,303 258,509 87,136 55,207 31,929 169,955 60,004 109,951 389,812 121,525 268,287 2,005,249 1,640,158 365,091 3,101,746 2,768,076 (333,670) 681,315 1,318,565 637,250 (667,824) (213,538) 454,286 734,800 589,870 (144,930) 7,780 7,780 (177,917) (177,937) 20 7,780 7,780 556,883 411,933 (144,910) $ 3,101,746 2,768,076 $ (333,670) $ 681,315 1,326,345 $ 645,030 $ (110,941) 198,395 $ 309,376 3,427,719 682,044 338,804 $ 6,195,795 $ 2,008,389 $ 537,199 39 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL (CONTINUED) ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2001 State and Local Federal Transportation Assistance Transit Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES Other taxes Utility franchise fees Utility franchise fees Maintenance assessments Subventions and grants $ 1,726,614 $ 984,601 $ (742,013) $ 364,543 $ 242,931 $ (121,612) Planning and public works fees Park development fees Charges for current services 1,020 1,020 17,400 24,713 7,313 Fines and forfeitures 3,500 3,500 Interest 77,500 153,373 75,873 11,070 11,070 Other Total Revenues 1,804,114 1,142,494 (661,620) 381,943 278,714 (103,229) EXPENDITURES Current: General government Public safety 22,741 17,424 5,317 Public services 30,077 43,788 (13,711) Parks and recreation 41,205 41,205 303,752 239,423 64,329 Capital outlay 2,613,293 1,313,937 1,299,356 20,900 20,900 Total Expenditures 2,707,316 1,375,149 1,332,167 324,652 239,423 85,229 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (903,202) (232,655) 670,547 57,291 39,291 (18,000) 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 (26,054) (46,879) (20,825) (57,886) (39,886) 18,000 Total Other Financing Sources(Uses) (8,054) (46,879) (38,825) (57,886) (39,886) 18,000 EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ (911,256) (279,534) $ 631,722 $ (595) (595) $ - Fund Balances,Beginning of Year 2,403,105 595 Prior Period Adjustment Fund Equity Transfer/Residual Equity Transfer 46,082 Fund Balances,End of Year $ 2,169,653 $ - 40 Solid Waste Total Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 598,090 $ 662,865 $ 64,775 $ 187,000 $ 202,402 $ 15,402 187,000 202,402 15,402 1,122,491 924,610 (197,881) 7,947,809 6,132,478 (1,815,331) 8,652 12,914 4,262 2,213,259 1,346,265 (866,994) 1,321,470 1,321,470 2,181,308 2,181,308 1,680,054 43,302 (1,636,752) 105,000 155,635 50,635 10,288 38,531 28,243 1,092,138 1,875,778 783,640 10,300 26,685 16,385 205,940 253,847 47,907 14,956,141 14,872,798 (83,343) 214,190 214,190 274,511 48,675 225,836 133,106 (133,106) 4,608,110 3,873,836 734,274 1,206,318 1,011,300 195,018 1,300 1,291 9 12,738,309 4,771,982 7,966,327 215,490 134,397 81,093 18,827,248 9,705,793 9,121,455 (9,550) 119,450 129,000 (3,871,107) 5,167,005 9,038,112 872,489 1,217,939 345,450 7,980 7,980 (15,000) 15,000 (42,075) (42,075) (819,656) (963,418) 138,918 (42,075) (42,075) 52,833 247,501 507,348 $ (51,625) 77,375 $ 129,000 $ (3,818,274) 5,414,506 $ 9,545,460 631,070 27,172,539 100,502 46,082 $ 708,445 $32,733,629 41 CITY OF MOORPARK COMBINING BALANCE SHEET ALL CAPITAL PROJECTS FUNDS JUNE 30, 2001 (With Comparative Totals for June 30,2000) City Hall Police Facilities Equipment Redevelopment Building Fee Fund Replacement Agency ASSETS Cash and Investments $ 465,089 $ 1,074,157 $ 137,308 $ 2,120,379 Accounts and interest receivable,net 76,006 Taxes receivable Notes and loans receivable 3,493,320 Due from other funds Other assets 10,590 Land held for resale 990,622 Total Assets $ 465,089 $ 1,074,157 $ 137,308 $ 6,690,917 LIABILITIES Liabilities: Accounts payable and accrued liabilities 6,681 342,396 Deposits,principally from developers 4,045 Due to other funds 484,761 Total Liabilities 6,681 831,202 FUND BALANCES Fund balances: Reserved for encumbrances Reserved for receivables due after one year,net 3,493,320 Reserved for land held for resale 990,622 Unreserved: Designated for business incentives 233,678 Designated for capital projects Undesignated 465,089 1,074,157 130,627 1,142,095 Total Fund Balances 465,089 1,074,157 130,627 5,859,715 Total Liabilities and Fund Balances $ 465,089 $ 1,074,157 $ 137,308 $ 6,690,917 42 TOTALS 2001 2000 $ 3,796,933 $ 5,995,714 76,006 263,030 31,494 3,493,320 3,737,740 10,590 10,086 990,622 $ 8,367,471 $ 10,038,064 349,077 160,591 4,045 2,370 484,761 481,977 837,883 644,938 372 3,493,320 3,737,740 990,622 233,678 233,678 3,906,378 2,811,968 1,514,958 7,529,588 9,393,126 $ 8,367,471 $ 10,038,064 43 CITY OF MOORPARK COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES ALL CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2001 (With Comparative Totals for the Fiscal Year Ended June 30,2000) City Hall Police Facilities Equipment Redevelopment Building Fee Fund Replacement Agency REVENUES Property taxes Other taxes Maintenance assessments $ 253,068 Charges for current services Fines and forfeitures Interest $ 26,085 51,781 $ 13,864 $ 438,440 Other 99,825 Total Revenues 26,085 304,849 13,864 538,265 EXPENDITURES Current: General government 900 2,900 271 Public safety 271 Public services 542 294,429 Capital outlay 184,999 1,859,113 Debt service Principal Interest Total Expenditures 900 2,900 186,083 2,153,542 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 25,185 301,949 (172,219) (1,615,277) OTHER FINANCING SOURCES(USES) Operating transfers in Operating transfers out (737,216) Total Other Financing Sources(Uses) (737,216) EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 25,185 301,949 (172,219) (2,352,493) Fund Balances,Beginning of Year 439,904 772,208 302,846 7,878,168 Prior Period Adjustment 334,040 Fund Balances,End of Year $ 465,089 $ 1,074,157 $ 130,627 $ 5,859,715 44 TOTALS 2001 2000 $ 1,589,397 300 $ 253,068 61,083 108,532 1,755 530,170 491,074 99,825 883,063 2,252,141 4,071 21,198 271 294,971 1,386,922 2,044,112 271,131 2,500,000 350,000 2,343,425 4,529,251 (1,460,362) (2,277,110) 60,500 (737,216) (535,351) (737,216) (474,851) (2,197,578) (2,751,961) 9,393,126 12,044,051 334,040 101,036 $ 7,529,588 $ 9,393,126 45 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, 2001 City Hall Police Facilities Building Fee Fund Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES Property taxes Maintenance assessments $ 304,610 $ 253,068 $ (51,542) Interest $ 21,000 $ 26,085 $ 5,085 40,000 51,781 11,781 Other Total Revenues 21,000 26,085 5,085 344,610 304,849 (39,761) EXPENDITURES Current: General government 900 900 2,900 (2,900) Public safety 5,000 5,000 Public services Capital outlay Total Expenditures 900 900 5,000 2,900 2,100 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 20,100 25,185 5,085 339,610 301,949 (37,661) OTHER FINANCING SOURCES(USES) Operating transfers out Total Other Financing Sources(Uses) EXCESS(DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ 20,100 25,185 $ 5,085 $ 339,610 301,949 $ (37,661) Fund Balances,Beginning of Year 439,904 772,208 Prior Period Adjustment Fund Balances,End of Year $ 465,089 $ 1,074,157 46 Equipment Redevelopment Replacement Agency Total Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 609,220 $ 253,068 $ (356,152) $ 15,000 $ 13,864 $ (1,136) $ 375,000 $ 438,440 $ 63,440 527,000 530,170 3,170 107,000 99,825 (7,175) 107,000 99,825 (7,175) 15,000 13,864 (1,136) 482,000 538,265 56,265 1,243,220 883,063 (360,157) 300 271 29 2,400 4,071 (1,671) 250 271 (21) 10,500 271 10,229 600 542 58 2,574,758 294,429 2,280,329 2,575,958 294,971 2,280,987 191,933 184,999 6,934 1,868,714 1,859,113 9,601 2,252,580 2,044,112 208,468 193,083 186,083 7,000 4,443,472 2,153,542 2,289,930 4,841,438 2,343,425 2,498,013 (178,083) (172,219) 5,864 (3,961,472) (1,615,277) 2,346,195 (3,598,218) (1,460,362) 2,137,856 (737,216) (737,216) (737,216) (737,216) (737,216) (737,216) (737,216) (737,216) $ (178,083) (172,219) $ 5,864 $ (3,961,472) (2,352,493) $ 1,608,979 $ (3,598,218) (2,197,578) $ 1,400,640 302,846 7,878,168 9,393,126 334,040 334,040 $ 130,627 $ 5,859,715 $ 7,529,588 47 CITY OF MOORPARK STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND-DEVELOPER DEPOSIT FUND FOR THE FISCAL YEAR ENDED JUNE 30,2001 Balance Net Net Balance Fund Name June 30, 2000 Additions Reductions June 30, 2001 Cash and investments $ 1,659,442 $ 245,819 $ 1,413,623 Total Assets $ 1,659,442 $ - $ 245,819 $ 1,413,623 Accounts payable 170,308 170,308 Developer deposits 1,489,134 75,511 1,413,623 Total Liabilities $ 1,659,442 $ - $ 245,819 $ 1,413,623 48 STATISTICAL SECTION 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& Other Total Year (See Note 1) Fees Agencies Assessments Property Revenue Revenue 1992 $ 2,616,716 $ 2,218,310 $ 725,609 $ 923,830 $ 1,420,077 $ 446,767 $ 8,351,309 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 7,072,806 2,925,322 4,312,485 8,670,249 3,088,182 516,546 26,585,590 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 Redevelopment Agency and then released it in 1993. I Source: City of Moorpark 49 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 1992 $ 1,015,922 $ 2,102,183 $ 2,227,984 $ 706,939 $ 2,119,893 $ 18,352 $ 8,191,273 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 1,619,062 3,968,812 5,047,343 1,851,648 6,879,243 2,767,770 22,133,878 Governmental Fund Types include General Fund and all Special Revenue,Debt Service and Capital Projects Funds. Source: City of Moorpark 50 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 1992 $ 1,590,604,539 $ 56,025,905 $ 1,646,630,444 6.2% $ 33,355,481 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 6.5% 40,240,720 2000 2,149,505,500 84,834,286 2,234,339,786 5.3% 40,687,060 2001 2,421,104,221 92,634,149 2,513,738,370 12.5% 40,786,802 Source: Ventura County Assessor 51 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 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% Source: California Municipal Statistics, Inc. 52 CITY OF MOORPARK DIRECT AND OVERLAPPING BONDED DEBT AS OF FISCAL YEAR 1999-2000* 1999-2000 Assessed Valuation: $ 2,211,432,867 Redevelopment Incremental Valuation: 184,257,216 Adjusted Assessed Valuation: $ 2,027,175,651 Percent Debt Direct and Overlapping Tax and Assessment Debt: Applicable as 6/30/00 Ventura County Flood Control District Zone No. 3 8.012% $ 120,981 Metropolitan Water District 0.222% 1,220,145 Ventura County Waterworks District No. 1 100.000% 125,000 Conejo Valley Unified School District 0.021% 6,300 City of Moorpark Commujity Facilities District No. 97-1 100.000% 7,525,000 City of Moorpark 1915 Act Bonds 100.000% 2,320,000 Total Direct and Overlapping Tax and Assessment Debt $11,317,426 Overlapping General Fund Obligation Debt: 4.236% $ 1,502,509 Ventura County General Fund Obligations 4.236% 5,328,888 Ventura County Pension Obligations 4.236% 123,268 Ventura County Superintendent of Schools COPS 4.237% 585,130 Ventura County Community College District COPS 91.108% 5,184,045 Ventura County Library District Authority 6.826% 40,956 Total Overlapping General Fund Obligation Debt $12,764,796 Combined Total Debt** $24,082,222 Ratios to 1999-2000 Assessed Valuation: Direct Debt 0.00% Total Direct and Overlapping Tax and Assessment Debt 0.51% Ratio to Adjusted Assessed Valuation Combined Total Debt 1.19% State School Building Aid Repayable as of 6/30/00 0 * 1999-2000 is the most current information available. **Excludes tax and revenue anticipation notes,revenue,mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Source: California Municipal Statistics,Inc. 53 CITY OF MOORPARK COMPUTATION OF LEGAL DEBT MARGIN AND BREAKDOWN OF GENERAL PROPERTY TAX LEVY Legal Debt Margin as of June 30, 2001 Assessed Valuation: Secured property assessed value: $ 2,421,104,221 Bonded Debt Limit(15% of Assessed Value) $ 363,165,633 Amount of Debt Subject to Debt Limit Total Bonded Debt $ 9,195,000 Less CRA Tax Allocation Bonds 9,195,000 Amount of Debt Subject to Debt Limit: 0 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% Education Revenue Augmentation 5.50% E.R.A.F 93-94 Shift 8.77% City of Moorpark 6.50% 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 54 CITY OF MOORPARK CITY POPULATION LAST TEN YEARS Percent Year Population Change 1992 26,294 1.5% 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 0.4% 2000 29,727 0.4% 2001 32,150 8.2% Source: City of Moorpark, and State Department of Finance 55 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 1992 $ 26,464,476 282 $ '),350,958 45 $ 29,815,434 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 Source: City of Moorpark, 56 CITY OF MOORPARK LARGEST PROPERTY OWNERS PER ASSESSED VALUATION 2001 Assessed Value of Property Owner Property Autosafe Airbag Limited Partnership $ 75,872,715 Security Capital Pacific Trust 31,037,773 Kavilco Corporation 21,741,700 Laars Inc 20,267,350 Mission Bell Plaza Phase 2 20,208,563 Jakie M. Galiher 18,678,516 G-S Partnership 17,912,277 Toll CA Limited Partnership 16,621,901 Kevin F. &Joanne O. Sawai 14,556,130 Mission Bell Plaza Phase 1 14,297,706 Source: Hdl Coren&Cone and Ventura County Assessor 57 CITY OF MOORPARK MISCELLANEOUS STATISTICS Year of Incorporation: 1983 Parks&Recreation: Number of Parks 14 Form of Government: Council-Manager Park Acreage 153 acres General Law City Most Recent Population Estimate: 0 Education(Number of Schools): High Schools 2 Registered Voters: 15,243 Middle Schools 2 Elementary Schools 6 City Employees: 75 Number of Community Facilities Fire Protection: City Civic Buildings Number of Stations: 2 Libraries 1 Number of Firefighters: 9 Community Centers 2 Senior Centers 1 Police Protection: Gym 1 Number of Stations: 1 Activity Rooms for Rentals 4 Number of Police Officers: 23 Number of Support Personnel: 2 58