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California
Cornprehensive
Annual Financial Report
for the Fiscal Year Ended June 30, 2005
On the cover. , .
The Moorpark Police Services Center located at 610 Spring Road opened on November 14,
2005. The Center includes personnel from Moorpark City Police, Ventura County Sheriffs
Department, and California Highway Patrol all under one roof. It's a one-stop location for law
enforcement services. The Center also includes an emergency operations center (EOC) for
disaster response and recovery. In the 75 -year history of the California Highway Patrol, this is
the first time they have co -located with an allied law enforcement agency.
CITY OF MOORPARK,
CALIFORNIA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2005
Prepared By:
Finance Department
INTRODUCTORY SECTION
CITY OF MOORPARK
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2005
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Table of Contents i -iii
Transmittal Letter iv
Directory of City Officials ix
Organization Chart x
FINANCIAL SECTION:
Independent Auditors' Report
Management's Discussion and Analysis
BASIC FINANCIAL STATEMENTS:
Government -Wide Financial Statements
Statement of Net Assets 14
Statement of Activities 15
Fund Financial Statements
Governmental Funds
Balance Sheet
16
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
18
Statement of Revenues, Expenditures, and Changes in Fund Balances
19
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
21
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual
22
Street and Traffic Safety Development Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual
23
Community Development Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual
24
Area of Contribution Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual
25
Endowment Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual
26
Park Improvement Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
- Budget and Actual
27
CITY OF MOORPARK
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2005
TABLE OF CONTENTS (Continued)
Agency Fund
Statement of Fiduciary Net Assets
NOTES TO THE FINANCIAL STATEMENTS:
SUPPLEMENTARY SCHEDULES:
Major Fund Budgetary Comparison Schedules
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual
Police Facilities Fee Fund Capital Projects Fund
Redevelopment Agency Capital Projects Fund
Redevelopment Agency Debt Service Fund
Non -Major Governmental Funds
Combining Balance Sheet
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual — Special Revenue Funds
Traffic Safety
Affordable Housing
Assessment District
State and Federal Assistance
State Gas Tax
Low and Moderate Income Housing
Local Transportation Transit
Solid Waste
Schedule of Revenues, Expenditures, and Changes in Fund Balances
- Budget and Actual — Capital Projects Funds
City Hall Building
Equipment Replacement
Agency Fund
Statement of Changes in Net Assets
ii
28
29
61
62
63
64
67
69
71
72
73
74
75
76
77
78
79
80
81
CITY OF MOORPARK
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2005
TABLE OF CONTENTS (Continued)
STATISTICAL SECTION (Unaudited):
Revenues by Source — All Governmental Fund Types — Last Ten Fiscal Years 82
Expenditures by Function — All Governmental Fund Types — Last Ten Fiscal Years 83
Assessed Value of Taxable Property — Last Ten Fiscal Years 84
Secured Tax Charge and Delinquencies — Last Ten Fiscal Years 85
Direct and Overlapping Bonded Debt 86
Computation of Legal Debt Margin and Breakdown of General Property Tax Levy 87
City Population — Last Ten Fiscal Years 88
Building Permit Valuation — Last Ten Fiscal Years 89
Largest Property Owners 90
Miscellaneous Statistics 91
iii
MOORPARK
799 Moorpark Avenue Moorpark, California 93021 (805) 517-6200
December 15, 2005
Honorable Mayor, Members of the City Council and Citizens of Moorpark:
We are pleased to present this Comprehensive Annual Financial Report (CAFR) of the City
of Moorpark, California for the fiscal year ended June 30, 2005. The City has continued to
prepare the CAFR to comply with the financial reporting model developed by the
Governmental Accounting Standards Board (GASB) Statement 34. This model improves the
financial reporting by adding significant additional information not previously available in
local government financial statements prior to GASB 34.
As a result of GASB 34, the Government -Wide Financial Statements are presented along
with the fund -by -fund financial information. The Government -Wide Financial Statements
include a Statement of Net Assets that provides the total net equity of the City including
infrastructures and the Statement of Activities that shows the cost of providing government
services. These statements include all assets and liabilities using the accrual basis of
accounting (similar to a private -sector business) versus the modified accrual method used in
the fund financial statements. A reconciliation of the balance sheet of the Governmental
Funds to the Statement of Net Assets has been prepared to reflect the changes between the
two reporting methods. In addition, the reporting model includes an emphasis on the City's
major funds as shown in the Governmental Fund Statements. These new statements and
other significant information are analyzed in the narrative section called Management's
Discussion and Analysis (MD&A). The MD&A provides "financial highlights" and a brief
overview of the basic financial statements. In addition, the MD&A provides the readers of
the City's financial statements with financial trends, explanation for variances and economic
factors for the upcoming fiscal year's budget.
Responsibility for both the accuracy of this data, and the completeness and fairness of its
presentation, including all disclosures, rests with the City. To the best of our knowledge and
belief, the enclosed data are accurate in all material respects and are reported in a manner that
presents fairly the account groups and the financial position and operational results of the
City's various funds and component units. All disclosures necessary to enable the reader to
gain an understanding of the City's activities have been included.
0
PATRICK HUNTER ROSEANN MIKOS CLINT D. HARPER KEITH F. MILLHOUSE JANICE S. PARVIN
Mayor Mayor Pro Tem Councilmember Counciimember Councilmember
THE REPORTING ENTITY AND ITS SERVICES
The financial reporting entity includes all the funds and account groups of the City of
Moorpark as well as all of its component units. The City of Moorpark is the primary
government. The component units are the Moorpark Redevelopment Agency (the RDA), the
Moorpark Public Financing Authority and the Moorpark Industrial Development Authority.
The City was incorporated in 1983 as a general law city and operates under a Council -
Manager form of government.
The RDA was formed in 1987 with the objective of providing long-term financing of capital
improvements designed to eliminate physical and economic blight in the designated project
area.
The Moorpark Public Financing Authority was formed in 1993 as a joint powers authority
between the City and the RDA in order to provide financial assistance to the City and the
RDA by issuing debt and financing the construction of public facilities.
The Industrial Development Authority of the City of Moorpark was formed in 1985 pursuant
to the California Industrial Development Financing Act (the "Act"). Its purpose is to finance
the acquisition and development of certain industrial activities as permitted by the Act and to
issue bonds for the purpose of enabling industrial firms to finance the cost of such activities.
PROFILE OF THE CITY OF MOORPARK
The City provides a full range of services to its residents with a total regular full-time staff of
about 55 and part-time staff of approximately 45 employees. Major services such as police
(contracted with Ventura County Sheriff), attorney, development engineering and inspection,
building and safety plan check/inspection, transit, street sweeping and landscape maintenance
are provided through contractual arrangements. In addition, fire protection is provided by the
Ventura County Fire District. The City provides services such as emergency management,
redevelopment, housing, planning, code compliance, recreation programs, vector/animal
control, park and facilities maintenance, street maintenance, city engineering, crossing guard
and administrative management services with city employees.
HISTORY OF THE CITY OF MOORPARK
In 1887, Robert W. Poindexter was granted title to the present site of Moorpark. He named
the City after the Moorpark apricot which grew throughout the valley. Poindexter plotted
Moorpark city streets and planted Pepper trees in the downtown area. The City of Moorpark
was incorporated in 1983 as the tenth city of Ventura County with a Council -Manager form
of government. The Mayor is elected at large to serve a two-year term. The four Council
Members are elected at large to serve staggered four-year terms. The size of the City was
12.36 square miles with a population of about 10,000 at incorporation and is currently at
12.44 square miles with a population of about 35,933. Moorpark is recognized for having the
v
lowest number of serious crimes committed in Ventura County and is one of the safest cities
of its size in the United States.
BUDGETARY CONTROL
The City of Moorpark prepares an annual budget consistent with Generally Accepted
Accounting Principles (GAAP) for all governmental funds on a modified accrual basis where
revenues are recognized when they become measurable and available to finance expenditures
of the current period. Expenditures are recorded when the goods or services are received and
the liabilities are incurred.
Department Directors are responsible, not only to accomplish his/her particular goals within
each program, but also to monitor budget allocations consistent to the funding levels adopted
by the City Council prior to July 1 of the budget year.
In addition, the City maintains budgetary control through the use of an encumbrance
accounting system. As purchase orders are issued, corresponding amounts are encumbered
for later payments to ensure that budget amounts are not over spent.
INTERNAL CONTROLS
The City's management is responsible for developing and establishing internal control
structure to ensure that the assets of the government are protected from loss, theft, misuse
and to ensure that adequate accounting data is compiled to allow for the preparation of
financial statements in conformity with Generally Accepted Accounting Principles. The
internal control structure is designed to provide reasonable assurance, but not absolute,
assurance that these objectives are met. The concept of reasonable assurance recognizes that:
1) the cost of a control should not exceed the benefits likely to be derived; and 2) the
valuation of the costs and benefits requires estimates and judgments by management.
ANNUAL AUDIT
An independent accounting firm has performed the annual audit of the City's financial
statements for the fiscal year ended June 30, 2005. As part of the annual audit, reviews are
made to determine the adequacy of the City's internal control structure, as well as to
determine that the City has complied with certain provisions of laws and regulations. Their
examination has been completed and the auditor's report on the City's financial statements is
included at the beginning of the Financial Section of this report.
APPROPRIATION LIMIT
Article XIIIB of Proposition 4, commonly referred to as the "Gann Initiative" was approved
by California voters in 1979, which placed limits on the amount of proceeds of taxes that
State and Local agencies can appropriate and spend each fiscal year. In addition, voters
approved Proposition I I I in 1990 to further increase the accountability of local government
in adopting their limits by requiring the governing body to annually adopt, by resolution, an
Vi
appropriation limit for the upcoming fiscal year. The appropriation limit and the City's
appropriations subject to the limit for the fiscal year 2004-05 amounted to $17,494,629 and
$7,426,500, respectively.
CASH MANAGEMENT
The City Treasurer is responsible for investing cash temporarily idle during the year in
accordance with the State Government Code and the Investment Policy adopted by the City
Council. The City diversified its investment portfolio be utilizing several investment
instruments. At fiscal year end June 30, 2005, over $54 million (City & RDA combined)
was invested with the State Treasurer's Local Agency Investment Fund (LAIF); $6.8 million
in the Ventura County Pool; Approximately $9.9 million in U.S. Treasury and Agency
Securities; and $1.1 million was invested in Certificate of Deposits (CDs).
The cash management system of the City of Moorpark is designed to monitor revenues and
expenditures to ensure the investment of monies to the fullest extent possible. The criteria
for selecting investments and the order of priority are (a) safety, (b) liquidity, and (c) yield.
The underlying objective of the City's policy is to obtain the highest interest rate yields and
at the same time, ensures that money is available when needed and all deposits are insured by
the Federal Deposit Insurance Corporation or collateralized.
CAPITAL ASSETS
In accordance with GASB Statement No. 34, the City has reported all capital assets including
infrastructures in the Government -Wide Statement of Net Assets. The City elected to use the
basic approach for all infrastructure reporting, whereby depreciation expense and
accumulated depreciation has been recorded. Capital assets for the fiscal year ended June 30,
2005 has a net ending balance of $117.4 million.
LONG-TERM LIABILITIESBONDED LIABILITIES
The City of Moorpark has no outstanding bond or other debt but does have long-term
liabilities in an amount of $498,962 at June 30, 2005 for employee compensated absences
(accrued leave).
The Moorpark Redevelopment Agency (MRA) has the 1999 Tax Allocation Bonds and the
2001 Tax Allocation Bonds outstanding in an amount of $7.7 million and $11.6 million,
respectively. The purpose of the 1999 Bonds was to advance refund the Agency's previously
issued 1993 Tax Allocation Bonds. The purpose of these bonds were to finance a portion of
the costs of implementing the Redevelopment Plan and fund redevelopment activities within
the MRA project area.
RISK MANAGEMENT
The City is a member of the California Joint Powers Insurance Authority (CJPIA) established
under the provisions of California Government Code 6500 et seq., consisting of 107
vii
California public entities. The CJPIA provides risk coverage for its members through the
pooling of losses and purchased insurance. The coverage extends to general liability and
workers' compensation administered by the Authority. In addition, the City of Moorpark
also participates in the all-risk property protection offered by the Authority. Various control
techniques, including safety, ergonomic, harassment and driver awareness training have been
implemented to minimize losses.
ACKNOWLEDGEMENT
We would like to express appreciation to all City staff who assisted and contributed to the
preparation of this report, particularly to the members of the Finance Department. We would
also like to extend our appreciation to our auditors, Vavrinek, Trine, Day & Co., LLP for
their professional assistance. As in the past, the CAFR will be available on the City's
website at www.moorpark.ca.us.
Respectfully submitted,
l'
Steven Kueny Johnny Ea
City Manager Finance Director
City of Moorpark
Comprehensive
Annual Financial Report
for the Fiscal Year Ended June 30, 2005
DIRECTORY OF CITY OFFICIALS
CITY COUNCIL
Patrick Hunter, Mayor
Clint Harper, Mayor pro Tem Roseann Mikos
Keith Millhouse Janice Parvin
CITY MANAGEMENT STAFF
Steven Kueny, City Manager
Hugh Riley, Assistant City Manager
Barry Hogan, Community Development Director
Brad Miller, City Engineer
Deborah Traffenstedt, Administrative Services Director
Johnny Ea, Finance Director
Ken Gilbert, Public Works Director
Mary Lindley, Parks, Recreation & Community Services Director
ix
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FINANCIAL SECTION
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Vavrinek,Trine, Day & Co., LLP
Certfed PUDIic k covnlants & Cpn5ult@Ms
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Members of City Council
The City of Moorpark, California
We have audited the accompanying financial statements of the governmental activities, each major fund, the
remaining funds and the aggregate remaining fund information of the City of Moorpark, California (the City), as
of and for the year ended June 30, 2005, which collectively comprise the City of Moorpark's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of the City of
Moorpark's management. Our responsibility is to express opinions on these financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the governmental activities, each major fund, and the aggregate remaining fund information of the
City of Moorpark, California, as of June 30, 2005, and the respective changes in financial positions, thereof for
the year then ended in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note 1 to the financial statements, the City adopted Governmental Accounting Standards Board
(GASB) Statement No. 40, Deposit and Investment Risk Disclosures an amendment of GASB Statement No. 3,
effective July 1, 2004.
In accordance with Government Auditing Standards, we have also issued our report dated October 20, 2005 on
our consideration of the City of Moorpark's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
8270 Aspen Street Rancho Cucamonga, CA 91730 Tel: 909.466.4410 Fax: 909.466.4431 www.vtdcpa.com
FRESNO • LAGUNA • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA
The management's discussion and analysis on pages 3 through 13, is not a required part of the basic financial
statements, but is supplementary information required by accounting principles generally accepted in the United
States of America. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, capital projects and debt service major
fund budgetary schedules, and combining individual non -major fund statements and schedules, and statistical
section as listed in the table of contents are presented for purpose of additional analysis and are not a required part
of the basic financial statements. The combining, capital projects and debt service major fund budgetary
schedules, individual non -major fund statements and schedules have been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole. The introductory section and the statistical section
have not been subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we express no opinion on them.
Rancho Cucamonga, California
October 20, 2005
2
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2005
As management of the City of Moorpark, California (the "City"), we offer readers of the City's financial
statements this narrative overview and analysis of the financial activities of the City (the "Primary Government")
for the fiscal year ended June 30, 2005. It is encouraged that the readers consider the information presented here
in conjunction with the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
• The assets of the City exceeded its liabilities at the close of the 2005 fiscal year by $172,580,040 (net
assets). Of this amount, $26,413,978 is not restricted by external law or administrative action for a
specified purpose. The City Council's approval is required before these funds may be used to meet the
City's ongoing obligations to citizens and creditors.
• The City's total net assets increased by $6,579,786 during the current fiscal year. The Statement of Net
Assets is presented on page 14.
• As of June 30, 2005, the City's governmental funds (General Fund, Special Revenue Funds, Debt Service
Funds, and Capital Projects Funds) reported combined ending fund balances of $70,453,125 an increase
of nearly $2.2 million from the prior year.
• At the end of the current fiscal year, unreserved fund balance for the General Fund was $12,527,255.
• The City's total Long — Term Liabilities decreased by $296,864 or 1.5% during the current fiscal year.
The decrease is attributable to the difference between employee compensated absences addition and the
fiscal year's regularly scheduled debt service payments for the 1999 and 2001 Tax Allocation Bonds.
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The
City's basic financial statements comprise three components:
1) Government -wide financial statements
2) Fund financial statements
3) Notes to basic financial statements
Other required supplementary information is included in addition to the basic financial statements.
Government -Wide Financial Statements. The City has presented its financial statements under the reporting
model required by Governmental Accounting Standards Board Statement No. 34 (GASB 34) and its related
Statements, GASB 37, 38 and 41. These financial statements are designed to provide readers with a broad
overview of the City's finances, in a manner similar to a private -sector business.
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2005
The government -wide financial statements include the statement of net assets and the statement of activities.
The governmental activities of the City include general government, public safety, public services, parks and
recreation, debt service, and interest on debt. The City does not have any business -type activities.
The statement of net assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases and decreases in net assets may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the most recent
fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods (i.e., uncollected taxes and earned but
unused vacation leave).
The government -wide financial statements include not only the City of Moorpark as the primary government, but
also a legally separate Moorpark Redevelopment Agency, the Moorpark Public Financing Authority, and the
Industrial Development Authority of the City of Moorpark. Although legally separate from the City, these
component units are blended with the primary government because of their governance or financial relationships
to the City.
The government -wide financial statements can be found on pages 14 and 15 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements. All of the funds of the City can be divided into two categories: governmental funds and fiduciary
funds.
Governmental Funds. Governmental Funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating the City's near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand
the long-term impact of the City's near-term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures and changes in fund balances, provide a reconciliation
to facilitate this comparison between governmental funds and governmental activities.
4
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2005
The City maintains 19 individual governmental funds. Information is presented separately in the governmental
fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund
balances for the General Fund, Street and Traffic Safety, Park Improvement, Community Development, Areas of
Contribution, Endowment, Police Facilities Fee, Moorpark Redevelopment Agency (MRA) — Capital Projects,
and Moorpark Redevelopment Agency (MRA) — Debt Service. All of which are considered to be major funds.
Data from the remaining 10 governmental funds are combined into a single, aggregated presentation. Individual
fund data for each of these non -major governmental funds is provided in the form of combining statements in the
non -major governmental funds section of this report.
The City adopts an annual budget for all its funds. A budgetary comparison statement is provided for all funds
with an annually adopted budget to demonstrate compliance with their respective budgets. The budgetary
comparison statements are located in the basic financial statements. The non -major governmental fund budgetary
comparisons are located in the non -major governmental funds section of the report.
Fiduciary Funds. Fiduciary funds, which consist solely of trust and agency funds, are used to account for
resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the
government -wide financial statements because the resources of the fund are not available to support the City's
own programs. As the City's only fiduciary fund, the Agency Fund is custodial in nature and, therefore, the
accounting used does not involve the measurement of the results of operations. The basic fiduciary fund financial
statement can be found on page 28 of this report.
Notes to the Basic Financial Statements. The notes to the basic financial statements provide additional
information that is essential to a full understanding of the data provided in the government -wide and fund
financial statements. The notes to the basic financial statements can be found on pages 29-59 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
The City has continued to present its financial statements under the new reporting model required by GASB 34.
A comparative analysis of the government -wide data has been included in this report.
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the
case of the City, assets exceeded liabilities by $172,580,040 at the close of the current fiscal year.
The City's, net assets invested in capital assets, net of related debt reflects a positive $99,760,671. As shown on
Table 1, the largest portion of the City's net assets (58%) is its investment in capital assets. The City uses these
capital assets to provide services to citizens; consequently, these assets are not available for future spending.
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2005
An additional portion of the City's net assets (27%) represents resources that are subject to external restrictions on
how they may be used. The major restrictions on net assets are funding source restrictions. The remaining
balance of total net assets (15%) is unrestricted and may be used to meet the City's obligations to citizens and
creditors in accordance with the finance -related legal requirements reflected in the City's fund structure. At the
end of the fiscal year ended June 30, 2005, the City reported positive balances in all three categories of net assets,
both for the City as a whole, as well as for its separate governmental activities.
Table 1
Net Assets
Governmental Activities
As of June 30, 2005 and 2004
Assets:
Current and other assets
Capital assets
Total Assets
Liabilities:
Long-term debt outstanding
Other liabilities
Total Liabilities
Net Assets:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total Net Assets
2005
$ 79,167,278
117,401,785
196,569,063
19,385,107
4,603,916
23,989,023
99,760,671
46,405,391
26,413,978
$ 172,580,040
2004
$ 76,701,898
113,646,392
190,348,290
19,690,826
3,347,452
23,038,278
93,941,392
41,506,906
31,861,714
$ 167,310,012
Note: Total net assets for June 30, 2004 has been restated (see note 9 15).
The City's net assets increased by $6,579,786 during the current fiscal year.
Cel
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2005
Table 2
Changes in Net Assets
Governmental Activities
As of June 30, 2005 and 2004
Expenses
General government
2005
2004
Revenues
5,709,323
4,902,148
Program Revenues:
9,844,050
10,957,272
Charges for services
$ 5,632,818
$ 6,494,526
Operating contributions and grants
2,313,834
4,077,849
Capital contributions and grants
4,633,166
4,731,311
General Revenues:
Tax increment
3,901,779
4,116,542
Property taxes
2,655,093
2,658,230
Franchise taxes
955,829
919,290
Sales taxes
2,046,368
2,176,893
Sales tax in lieu
537,485
-
Motor vehicle in lieu tax
2,836,154
1,570,551
Investment income
1,725,579
1,363,344
Other
1,160,805
177,380
Gain on Sale of Property
48,339
-
Special item
-
(900,000)
Total Revenues
28,447,249
27,385,916
Expenses
General government
3,030,395
2,351,860
Public safety
5,709,323
4,902,148
Public services
9,844,050
10,957,272
Parks and recreation
2,304,852
2,600,523
Interest on long-term debt
978,843
1,097,421
Total Expenses
21,867,463
21,909,224
Increase in net assets
Net assets - July 1, as restated (see Note # 15)
Total Net assets - June 30
7
6,579,786 5,476,692
166,000,254 161,833,320
S 172,580,040 S 167,310,012
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2005
Program Revenues
Capital
contributions and
grants Charges for
37% services
6ii 1 9 45%
Operating
contributions and
grants
18%
■ Charges for services
■ Operating contributions and grants
❑ Capital contributions and grants
M.
General Revenues
Gain on Sale of
Investment
Other Property
7% 0%
Tax increment
income
12%
24%
Motorvehicle in
lieu tax
Property taxes
18%
17%
Sales taxin lieu
Sales taxes
Franchise taxes
3%
13%
6%
■ Tax increment
■ Property taxes
❑ Franchise taxes
❑ Sales taxes
■ Sales tax in lieu
■ M otor vehicle in lieu tax
■ Investment income
■ Other
■ Gain on Sale of Property
M.
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2005
FINANCIAL ANALYSIS OF THE CITY'S MAJOR FUNDS
As noted earlier, the City uses fund accounting to demonstrate compliance with finance -related legal
requirements.
Governmental Funds. The focus of the City's governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's financial
requirements. In particular unreserved fund balance may serve as a useful measure of a government's net
resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported total fund balances of
$70,453,125. This is an increase of $2,179,893 in comparison with the prior year. Approximately $50,791,645 or
72% of the fund balances constitutes unreserved fund balance, which is available to meet the City's current and
future needs. The remainder of fund balance is reserved to indicate that it is not available for new spending
because it has been committed to a variety of restricted purposes.
General Fund
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the total fund
balance of the General Fund was $18,299,699 which was $3,307,786 or 22% more than the prior year's General
Fund total fund balance. As a measure of the General Fund's liquidity, it may be useful to compare total fund
balance to total fund expenditures. Total fund balance represents 190 % of total General Fund expenditures and
transfers out.
Key factors in this growth are as follows:
• The City's share of Vehicle License Fees (VLF) in an amount of $585,518 that was borrowed by the State
in FY 2003/04 was repaid earlier than the expected repayment date of August 2006.
• Triple Flip payments in an amount of $537,485 were received for the sales tax reduction in FY 2003-04.
• The City received $175,000 from cable franchise for equipment upgrades to the PEG channel.
• Supplemental Secured/Unsecured Property Tax and Real Property Transfer Tax increased by $80,000.
• Expenditures ended the year $1.8 million under budget mainly due to savings of $476,000 and $98,000
that were not needed to be transferred to the Community Development Fund and Park Maintenance Fund
respectively. Other savings resulted from prudent spending by staff and capital projects that have not yet
started.
Street and Traffic Safety Fund
The fund balance of the Street and Traffic Safety Fund increased by approximately $360,000 from the prior year,
primarily due to the receipt of development fees for various construction projects.
Community Development Fund
The fund balance of the Community Development Fund decreased by approximately $350,000 from the prior year
as a result of funding Planning, Building & Safety, and Engineering expenditures without contributions from the
General Fund.
M
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2005
Areas of Contribution Fund
The fund balance of the Areas of Contribution Fund decreased by approximately $357,000 from the prior year,
primarily due to Los Angeles Avenue Widening and Spring Road project expenditures.
Endowment Fund
The fund balance of the Endowment Fund increased by approximately $2.2 million from the prior year, primarily
due to the receipt of $1.5 million of development fees per the Second Amendment to the Settlement Agreement
with a developer. In addition, expenditures were low due to budgeted projects not yet started or projects are in
progress.
Park Improvement Fund
The fund balance of the Park Improvement Fund increased by approximately $266,000 primarily due to savings
from various ongoing projects that have not yet been completed.
Police Facilities Fund
The fund balance of the Police Facilities Fund decreased by approximately $5.8 million from the prior year,
primarily due to the construction of the final phase of the new Police Services Facility. The Police Department is
expected to move into the new facility in November of 2006. The major funding source for this new facility is a
loan from the Endowment Fund in an amount of $7.9 million. Repayments will be made when the Police
Facilities Fund collect fees from future development projects.
RDA Capital Projects Fund
The fund balance of the Redevelopment Agency Capital Projects Fund increased by approximately $411,000 from
the previous year mainly from two loan payoffs received during the year.
RDA Debt Service Fund
The fund balance of the Redevelopment Agency Debt Service Fund increased by approximately $545,000
primarily resulting from lower transfers to the RDA Operations Fund of tax increment revenue.
Non -Major Governmental Funds
The fund balance of all other Non -Major Governmental Funds (10 funds) increased by approximately
$1.6 million or 15.4% from the previous fiscal year. This increase is mainly a result of the receipt of the full
payment of the Cabrillo Note in an amount of $850,000 on April 14, 2005 and the receipt of $544,000 from the
Local Transportation Article (8A) Fund.
10
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2005
General Fund Budgetary Highlights
The City adopts annual appropriated operating budgets for its governmental funds (General Fund, Special
Revenue Funds, Debt Service Funds, and Capital Project Funds) and reports the results of operation on a budget
comparison basis.
In preparing its budgets, the City attempts to estimate its revenues using realistic, but conservative, methods so as
to budget its expenditure appropriations and activities in a prudent manner. As a result, the City Council adopts
budget adjustments during the course of the fiscal year to reflect both changed priorities and availability of
additional revenues to allow for expansion of existing programs. During the course of the year, the City Council
amended the originally adopted budget to re -appropriate prior year approved projects and expenditures, as well as
approving many other adjustments for the current year.
The results of the General Fund for the year ended June 30, 2005, were more favorable than anticipated.
Revenues were $1 million over budget and expenditures and transfers out ended the year $1.8 million under
budget. The two largest savings came from General Government ($438,662) and Parks and Recreation
($298,469).
CAPITAL ASSET AND LONG-TERM LIABILITIES
Capital Assets. The City's investment in capital assets as of June 30, 2005, amounted to $117,401,785 (net of
accumulated depreciation). This investment, detailed in Table 3, includes land, construction in progress,
buildings and improvements, machinery and equipment, and infrastructure. The total increase in the City's
investment in capital assets for the current fiscal year was 3.3%.
Table 3
Capital Assets (net of depreciation)
Governmental Activities
As of June 30, 2005 and 2004
Land
Construction in Progress
Buildings and improvements
Machinery and equipment
Infrastructure
Total
II
2005
$ 30,841,687
14,718,377
5,755,537
858,531
65,227,653
$ 117,401,785
2004
$ 32,463,213
7,330,885
5,886,644
925,384
67,040,266
$ 113,646,392
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2005
Some of the City's major capital asset purchases in the current fiscal year were:
• In the General Fund, the Community Services Department purchased a video monitoring system for
$18,890 and also purchased RecWare software for $10,178.
• The Park Maintenance Fund purchased a brush chipper for $26,146.
• The Los Angeles A.O.0 Fund purchased a property for $400,638.
• Approximately $68,000 was spent from various funds on Information Systems equipment and computers.
• Nearly $9.1 million for the new Police Facility is included in the $14.7 million Construction in Progress
total.
As a result of the implementation of GASB 34, the City has continued to account for infrastructure assets on its
financial statements. The accompanying government -wide financial statements include those infrastructure assets
that were either completed during the current fiscal year or considered construction in progress at current fiscal
year-end.
Additional information on the City's capital assets can be found in Note #5 on page 47 of this report.
Long-term Liabilities. At the end of the current fiscal year, the City's long-term liability outstanding is
$498,962 in employee compensated absences payable. The Redevelopment Agency's bonded liability is
comprised of $19,300,000 of tax allocation bonds which are secured by future tax revenues. This is shown at
Table 4.
Table 4
Outstanding Long -Term Liabilities
Governmental Activities
As of June 30, 2005 and 2004
Tax allocation bonds (issued by the
Redevelopment Agency)
Employee Compensated Absences
Payable
Total
2005
$ 19,300,000
498,962
$ 19,798,962
2004
$ 19,705,000
390,826
$ 20,095,826
The City of Moorpark's total liabilities decreased by $296,864 or 1.5% during the current fiscal year. The
decrease is attributable to the difference between long-term liabilities additions and the fiscal year's regularly
scheduled liabilities service payments.
12
CITY OF MOORPARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2005
Additional information on the City's long-term liabilities can be found in Note #6 on pages 48 and 49 of the basic
financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The State's "Triple Flip" payment plan remains in effect as the state attempts to repay the $15 billion deficit
reduction bonds. The impact to the City of Moorpark will be on cash flow and the subsequent reduction in
interest income due to biannual (catch-up payments) rather than monthly sales tax payments. In addition, the
City's budget continues to be challenged by the State's transfer of funds to the schools (ERAF shift). The City of
Moorpark Redevelopment Agency's ERAF shift as calculated by the State Department of Finance for FY 2005-06
is $295,182. This is an increase of $1,484 in comparison to last year's shift of $293,698.
Additionally, the City took into consideration the following factors in preparing the budget for fiscal year
2005-06:
• Assessed property values are expected to have a nominal increase.
• Interest income will show a slight increase as interest rates continue to rise.
• Sales tax growth will be modest which is a reflection of the full occupancy of the Moorpark Marketplace
and generally having the same tenant mix in FY 2005-06.
• Increase in PERS retirement cost from 8.136% to 11.783% effective 7/1/05.
• Increase in health insurance rates and Worker's Compensation rates.
A priority of the City is to maintain a high quality of services while adopting a balanced budget. As in prior
years, the 2005-06 budget as adopted by the City Council is a balanced budget and will serve as a guide in
planning for the future.
REQUESTS FOR INFORMATION
This management's discussion and analysis is designed to provide citizens, taxpayers, customers, investors and
creditors with a general overview of the City's finances and to demonstrate the City's accountability for the
money it receives. If you have questions or need additional financial information, please contact the Finance
Department at City Hall, 799 Moorpark Avenue, Moorpark, CA 93021, or at www.ci.moorpark.ca.us.
13
BASIC FINANCIAL STATEMENTS
GOVERNMENT -WIDE FINANCIAL STATEMENTS
CITY OF MOORPARK
STATEMENT OF NET ASSETS
JUNE 30, 2005
LIABILITIES
Accounts payable and accrued liabilities
Governmental
Retentions payable
Activities
ASSETS
238,009
Cash and investments
$ 68,900,708
Receivables:
5,760
Taxes
106,508
Accounts
1,757,031
Interest
580,190
Notes and loans
4,770,532
Property held for resale/development
1,658,886
Restricted cash and investments
1,393,423
Capital assets:
Non -depreciable:
Land
30,841,687
Construction in progress
14,718,377
Depreciable, net of accumulated depreciation:
Buildings and improvements
5,755,537
Machinery and equipment
858,531
Infrastructure
65,227,653
Total Assets
196,569,063
LIABILITIES
Accounts payable and accrued liabilities
3,242,368
Retentions payable
62,555
Interest payable
238,009
Deferred revenue
635,224
Deposits
5,760
Noncurrent liabilities:
1,393,423
Due within one year
420,000
Due in more than one year
19,385,107
Total Liabilities
23,989,023
NET ASSETS
Invested in capital assets, net of related debt
99,760,671
Restricted for:
Community development
38,719,943
Recreation services
3,038,019
Public safety
552,743
Debt service
1,393,423
Housing set-aside
2,701,263
Unrestricted
26,413,978
Total Net Assets
$ 172,580,040
See accompanying notes to financial statements.
14
CITY OF MOORPARK
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2005
Total Governmental Activities $ 21,867,463 $ 5,632,818 $ 2,313,834 $ 4,633,166 (9,287,645)
General Revenues:
Taxes:
Program Revenues
Property tax, levied for general purpose
2,655,093
Property tax, Redevelopment Agency tax increment
3,901,779
Franchise tax
Operating
Capital
Net
Sales tax in lieu
537,485
Charges for
Contributions Contributions
Governmental
1,725,579
Expenses
Services
and Grants
and Grants
Activities
Governmental Activities:
Change in Net Assets
6,579,786
Net Assets at Beginning of Year, as Restated
166,000,254
Net Assets at End of Year
General government
$ 3,030,395
$ 2,010,540
$ 195,277
$ (824,578)
Public safety
5,709,323
344,019
103,724 $
85,411
(5,176,169)
Public services
9,844,050
2,776,976
2,014,833
4,358,424
(693,817)
Parks and recreation
2,304,852
501,283
189,331
(1,614,238)
Interest on long-term debt
978,843
(978,843)
Total Governmental Activities $ 21,867,463 $ 5,632,818 $ 2,313,834 $ 4,633,166 (9,287,645)
General Revenues:
Taxes:
Property tax, levied for general purpose
2,655,093
Property tax, Redevelopment Agency tax increment
3,901,779
Franchise tax
955,829
Sales tax
2,046,368
Sales tax in lieu
537,485
Motor vehicle in lieu tax
2,836,154
Investment income
1,725,579
Other
1,160,805
Gain on sale of property
48,339
Total General Revenues
15,867,431
Change in Net Assets
6,579,786
Net Assets at Beginning of Year, as Restated
166,000,254
Net Assets at End of Year
$ 172,580,040
See accompanying notes to financial statements.
15
FUND FINANCIAL STATEMENTS
CITY OF MOORPARK
GOVERNMENTAL FUND
BALANCESHEET
JUNE 30, 2005
Special Revenue
LIABILITIES AND FUND BALANCES
Street and
Community
Areas of
ASSETS
General
Traffic Safety
Development
Contribution
Cash and investments
$ 11,895,435
$ 10,443,484
$ 661,003
$ 7,451,456
Restricted cash and investments
Receivables:
10,260
17,573
Taxes
101,930
137,274
Accounts
1,307,977
356
Interest
303,042
137,275
Notes and loans
2,286
19,280
242,860
211,427
Due from other funds
185,862
Advances to other funds
5,586,582
Property held for resale/development
Total Assets
$ 19,383,114
$ 10,443,484
$ 661,359
$ 7,588,731
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued liabilities
$ 981,485
$ 9,020 $
242,860
$ 56,580
Due to other funds
Retention payable
10,260
17,573
Deferred revenue
101,930
137,274
Deposits, principally from developers
Advances from other funds
Total Liabilities
1,083,415
19,280
242,860
211,427
FUND BALANCES
Reserved for:
Debt service
Property held for resale/development
Interfund receivables
5,772,444
Housing set-aside
Unreserved, reported in:
General fund
12,527,255
Special revenue funds
10,424,204
418,499
7,377,304
Capital projects funds
Debt service fund
Total Fund Balances
18,299,699
10,424,204
418,499
7,377,304
Total Liabilities and
Fund Balances
$ 19,383,114
$ 10,443,484 $
661,359
$ 7,588,731
See accompanying notes to financial statements.
co
Debt
Special Revenue Capital Projects Service
Non -Major
Park Police Redevelopment Redevelopment Governmental
Endowment Improvement Facilities Fee Agency Agency Funds Totals
$ 5,719,568 $ 3,101,611 $ 1,016,965 $ 10,812,042 $ 5,826,345 $ 11,972,799 $ 68,900,708
1,393,423 1,393,423
4,578 106,508
1,064 975 60,876 385,783 1,757,031
134,452 5,421 580,190
2,286
188,834 374,696
7,946,630 13,533,212
876,601 782,285 1,658,886
$13,666,198 $ 3,101,611 $ 1,018,029 $ 12,012,904 $ 7,280,644 $ 13,150,866 $ 88,306,940
$ 274 $ 62,146 $ 270,109 $ 17,109 $ 1,233,937 $ 368,848 $ 3,242,368
374,696 374,696
1,446 20,622 12,654 62,555
396,020 635,224
5,045 715 5,760
7,946,630 344,849 5,000,000 241,733 13,533,212
274 63,592 8,216,739 387,625 6,233,937 1,394,666 17,853,815
7,946,630
1,393,423 1,393,423
876,601 782,285 1,658,886
188,834 13,907,908
2,701,263 2,701,263
12,527,255
5,719,294 3,038,019 7,386,755 34,364,075
(7,198,710) 10,559,844 885,897 4,247,031
(346,716) (346,716)
13,665,924 3,038,019 (7,198,710) 11,625,279 1,046,707 11,756,200 70,453,125
$13,666,198 $ 3,101,611 $ 1,018,029 $ 12,012,904 $ 7,280,644 $ 13,150,866 $ 88,306,940
17
CITY OF MOORPARK
GOVERNMENTAL FUND
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2005
Fund Balances of Governmental Funds $ 70,453,125
Amounts reported for Governmental Activities in the Statement of Net Assets are
different because:
Capital assets of governmental activities are not financial resources and, therefore,
are not reported in the governmental funds. 117,401,785
Long-term notes and loans receivable are not current financial resources and,
therefore, are not included in the governmental funds. 4,768,246
Interest expenditures are recognized when due, and therefore, interest payable
is not recorded in the governmental funds. (238,009)
Long-term liabilities are not due and payable in the current period and, therefore,
are not reported in the governmental funds. (19,805,107)
Net Assets of Governmental Activities $ 172,580,040
See accompanying notes to financial statements.
18
CITY OF MOORPARK
GOVERNMENTAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2005
REVENUES
Taxes
Licenses and permits
Fines and forfeitures
Use of money and property
Charges for services
Intergovernmental
Maintenance assessments
Franchise fees
Building and safety fees
Planning and public works fees
Development fees
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public services
Parks and recreation
Capital outlay
Debt service:
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Gain from sale of property
Transfers out
Total Other Financing
Sources (Uses)
Net Change in Fund Balances
Special Revenue
Street and
Traffic Safety Community Areas of
General Development Development Contribution
$ 5,237,648
54,180
149,121
534,114 $
211,336
$ 38,890
2,508,577
$ 7,079
1,165
3,032,435
483,627
955,828
431,959
1,967,751
333,599
314,391
12,786,294
544,935
2,406,789
523,682
2,852,246
5,119
4,414,909
712,816
184,676
2,751,570
749,287
720,666
8,729,258 184,676 2,756,689 720,666
4,057,036 360,259 (349,900) (196,984)
160,259
(909,509) (160,259)
(749,250) (160,259)
3,307,786 360,259 (349,900) (357,243)
Fund Balances, Beginning of Year, as Restated 14,991,913 10,063,945 768,399 7,734,547
Fund Balances, End of Year $18,299,699 $ 10,424,204 $ 418,499 $ 7,377,304
See accompanying notes to financial statements.
19
Debt
Special Revenue Capital Projects Service
Non -Major
Park Police Redevelopment Redevelopment Governmental
Endowment Improvement Facilities Fee Agency Agency Funds Total
$ 3,901,779 $ 295 $ 9,139,722
54,180
194,898 344,019
$ 239,709 $ 80,515 $ 414,131 163,949 241,935 1,924,579
593 41,560 2,558,974
2,118,557 5,150,992
$ 85,411 1,394,152 1,963,190
275,935 1,231,763
431,959
1,967,751
2,147,046 189,331 2,669,976
489,000 795,247 1,234,324 2,832,962
2,386,755 759,439 85,411 1,209,378 4,065,728 5,501,656 30,270,067
35,994 2,893,359
1,275,911 5,690,820
387 740,696 1,329,747 2,378,255 8,098,147
1,332,436 2,081,723
112,417 492,898 5,896,967 57,407 530,524 7,810,879
405,000 405,000
1,158,585 1,158,585
148,411 493,285 5,896,967 798,103 2,893,332 5,517,126 28,138,513
2,238,344 266,154 (5,811,556) 411,275 1,172,396 (15,470) 2,131,554
152,674
1,714,382
2,027,315
48,339
48,339
(780,356)
(177,191)
(2,027,315)
(627,682)
1,585,530
48,339
2,238,344 266,154 (5,811,556) 411,275 544,714
1,570,060
2,179,893
11,427,580 2,771,865 (1,387,154) 11,214,004 501,993
10,186,140
68,273,232
$13,665,924 $ 3,038,019 $ (7,198,710) $ 11,625,279 $ 1,046,707
$ 11,756,200
$ 70,453,125
20
CITY OF MOORPARK
GOVERNMENTAL FUND
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITES
FOR THE YEAR ENDED JUNE 30, 2005
Net Change in Fund Balances - Total Governmental Funds $ 2,179,893
Amounts reported for governmental activities in the Statement of Activities differs
from the amounts reported in the Statement of Revenues, Expenditures, and Changes
in Fund Balances because:
Governmental funds report capital outlays as expenditures. However, in the Statement
of Activities, the cost of those assets is allocated over their estimated useful lives
as depreciation expense or are allocated to the appropriate functional expense when
the cost is below the capitalization threshold. This activity is reconciled as follows:
Cost of assets capitalized less disposals 7,998,441
Depreciation expense (2,220,884)
Long-term notes and loans receivable are reported as expenditures when made and
as revenue when repaid in the governmental funds. However, there is no impact
in the Statement of Activities when notes and loans are made or repaid. This amount
represents the net change in the long-term notes and loans receivable. (1,672,157)
Principal repayments of long-term debt are reported as expenditures in the
Governmental Funds, however, they reduce long-term liabilities in the Statement
of Net Assets. 405,000
Accrued interest for Tax Allocation Bonds is not recorded in the governmental funds.
This is the net change in accrued interest for the current period. 3,774
Compensated absence expenses reported in the Statement of Activities do not
require the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds. (114,281)
Change in Net Assets of Governmental Activities $ 6,579,786
See accompanying notes to financial statements.
21
CITY OF MOORPARK
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2005
REVENUES
Taxes
Licenses and permits
Fines and forfeitures
Use of money and property
Charges for services
Intergovernmental
Franchise fees
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public services
Parks and recreation
Total Expenditures
Excess of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 4,950,750 $ 5,330,750 $ 5,237,648 $ (93,102)
46,600
46,600
54,180
7,580
95,500
95,500
149,121
53,621
310,000
325,000
534,114
209,114
2,326,583
2,349,583
2,508,577
158,994
2,454,484
2,454,484
3,032,435
577,951
922,000
922,000
955,828
33,828
10,000
216,650
314,391
97,741
11,115,917 11,740,567 12,786,294 1,045,727
2,956,619
3,290,908
2,852,246
438,662
4,703,522
4,708,627
4,414,909
293,718
908,339
860,360
712,816
147,544
991,741
1,047,756
749,287
298,469
9,560,221 9,907,651 8,729,258 1,178,393
1,555,696 1,832,916 4,057,036 2,224,120
160,259 160,259 160,259
(1,402,139) (1,483,862) (909,509) 574,353
(1,241,880) (1,323,603) (749,250) 574,353
313,816 509,313 3,307,786 2,798,473
Fund Balance, Beginning of Year, as restated 14,991,913 14,991,913 14,991,913
Fund Balance, End of Year $15,305,729 $15,501,226 $18,299,699 $ 2,798,473
See accompanying notes to financial statements.
22
CITY OF MOORPARK
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES — BUDGET AND ACTUAL
STREET AND TRAFFIC SAFETY DEVELOPMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2005
EXPENDITURES
Current:
Public services 816,408 1,146,344 184,676 961,668
Total Expenditures 816,408 1,146,344 184,676 961,668
Net Change in Fund Balance 961,925 631,989 360,259 (271,730)
Fund Balance, Beginning of Year
10,063,945
10,063,945
10,063,945
Variance with
$ 11,025,870
$10,695,934
$10,424,204 $ (271,730)
Final Budget -
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES
Use of money and property
$ 146,442
$ 146,442
$ 211,336
$ 64,894
Development fees
1,631,891
1,631,891
333,599
(1,298,292)
Total Revenues
1,778,333
1,778,333
544,935
(1,233,398)
EXPENDITURES
Current:
Public services 816,408 1,146,344 184,676 961,668
Total Expenditures 816,408 1,146,344 184,676 961,668
Net Change in Fund Balance 961,925 631,989 360,259 (271,730)
Fund Balance, Beginning of Year
10,063,945
10,063,945
10,063,945
Fund Balance, End of Year
$ 11,025,870
$10,695,934
$10,424,204 $ (271,730)
See accompanying notes to financial statements.
23
CITY OF MOORPARK
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES — BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2005
EXPENDITURES
Current:
General government 4,175 5,119 5,119
Public services 2,673,125 2,687,825 2,751,570 (63,745)
Total Expenditures 2,677,300 2,692,944 2,756,689 (63,745)
Excess (Deficiency) of Revenues
Over (Under) Expenditures (719,230) (722,874) (349,900) 372,974
OTHER FINANCING SOURCES
Transfers in 469,208 475,908 (475,908)
Total Other Financing Sources
469,208
475,908
(475,908)
Variance with
(250,022)
(246,966) (349,900)
(102,934)
Final Budget -
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES
Charges for services
$ 3,500
$ 3,500
$ 7,079
$ 3,579
Building and safety fees
364,310
400,553
431,959
31,406
Planning and public works fees
1,590,260
1,566,017
1,967,751
401,734
Total Revenues
1,958,070
1,970,070
2,406,789
436,719
EXPENDITURES
Current:
General government 4,175 5,119 5,119
Public services 2,673,125 2,687,825 2,751,570 (63,745)
Total Expenditures 2,677,300 2,692,944 2,756,689 (63,745)
Excess (Deficiency) of Revenues
Over (Under) Expenditures (719,230) (722,874) (349,900) 372,974
OTHER FINANCING SOURCES
Transfers in 469,208 475,908 (475,908)
Total Other Financing Sources
469,208
475,908
(475,908)
Net Change in Fund Balance
(250,022)
(246,966) (349,900)
(102,934)
Fund Balance, Beginning of Year
768,399
768,399
768,399
Fund Balance, End of Year
$ 518,377
$ 521,433
$ 418,499 $ (102,934)
See accompanying notes to financial statements.
24
CITY OF MOORPARK
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES — BUDGET AND ACTUAL
AREAS OF CONTRIBUTION SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2005
Total Revenues 1,344,290 1,344,290 523,682 (820,608)
EXPENDITURES
Capital outlay 8,282,124 9,545,483 720,666 8,824,817
Excess (Deficiency) of Revenues
Over (Under) Expenditures (6,937,834) (8,201,193) (196,984) 8,004,209
OTHER FINANCING SOURCES (USES)
Transfers out (160,259) (160,259) (160,259)
Net Change in Fund Balance (7,098,093) (8,361,452) (357,243) 8,004,209
Fund Balance, Beginning of Year 7,734,547 7,734,547 7,734,547
Fund Balance, End of Year $ 636,454 $ (626,905) $ 7,377,304 $ 8,004,209
See accompanying notes to financial statements.
25
Variance with
Final Budget -
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
REVENUES
Use of money and property
$ 114,271 $ 114,271
$ 38,890
$ (75,381)
Charges for services
1,165
1,165
Maintenance assessments
1,230,019 1,230,019
483,627
(746,392)
Total Revenues 1,344,290 1,344,290 523,682 (820,608)
EXPENDITURES
Capital outlay 8,282,124 9,545,483 720,666 8,824,817
Excess (Deficiency) of Revenues
Over (Under) Expenditures (6,937,834) (8,201,193) (196,984) 8,004,209
OTHER FINANCING SOURCES (USES)
Transfers out (160,259) (160,259) (160,259)
Net Change in Fund Balance (7,098,093) (8,361,452) (357,243) 8,004,209
Fund Balance, Beginning of Year 7,734,547 7,734,547 7,734,547
Fund Balance, End of Year $ 636,454 $ (626,905) $ 7,377,304 $ 8,004,209
See accompanying notes to financial statements.
25
CITY OF MOORPARK
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES — BUDGET AND ACTUAL
ENDOWMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2005
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 148,222 $ 148,222 $ 239,709 $ 91,487
Development fees 1,149,000 1,449,000 2,147,046 698,046
Total Revenues 1,297,222 1,597,222 2,386,755 789,533
EXPENDITURES
Current:
General government 35,994 (35,994)
Capital outlay 4,318,230 5,867,205 112,417 5,754,788
Total Expenditures
4,318,230
5,867,205
148,411
5,718,794
Net Change in Fund Balance
(3,021,008)
(4,269,983)
2,238,344
6,508,327
Fund Balance, Beginning of Year
11,427,580
11,427,580
11,427,580
Fund Balance, End of Year
$ 8,406,572
$ 7,157,597
$13,665,924 $ 6,508,327
See accompanying notes to financial statements.
Wo
CITY OF MOORPARK
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES — BUDGET AND ACTUAL
PARK IMPROVEMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2005
REVENUES
Use of money and property
Charges for services
Development fees
Other revenue
Total Revenues
EXPENDITURES
Current:
Public services
Capital outlay
762,073 1,267,870 759,439 (508,431)
30,000 30,000 387 29,613
1,189,427 1,335,478 492,898 842,580
Total Expenditures
1,219,427
Variance with
493,285
872,193
Final Budget -
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
$ 82,197 $ 82,197
$ 80,515
$ (1,682)
593
593
679,876 696,673
189,331
(507,342)
489,000
489,000
762,073 1,267,870 759,439 (508,431)
30,000 30,000 387 29,613
1,189,427 1,335,478 492,898 842,580
Total Expenditures
1,219,427
1,365,478
493,285
872,193
Net Change in Fund Balances
(457,354)
(97,608)
266,154
363,762
Fund Balance, Beginning of Year
Fund Balance, End of Year
See accompanying notes to financial statements.
2,771,865 2,771,865 2,771,865
$2,314,511 $2,674,257 $3,038,019 $ 363,762
27
CITY OF MOORPARK
STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUND
JUNE 30, 2005
ASSETS
Cash and investments
LIABILITIES
Accounts payable
Deposits
Total Liabilities
See accompanying notes to financial statements.
28
$ 4,365,932
$ 306,713
4,059,219
$ 4,365,932
NOTES TO FINANCIAL STATEMENTS
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #1 SUMMARY OF SIGNIFICANTACCOUNTING POLICIES
The accounting policies of the City of Moorpark (the City) conform to accounting principles generally accepted in
the United States of America as applicable to governments. The Governmental Accounting Standards Board
(GASB) is the accepted standard setting body for governmental accounting and financial reporting principles.
The following is a summary of the significant policies.
A. Reporting E
The reporting entity "City of Moorpark" includes the accounts of the City, the Moorpark Redevelopment
Agency (the RDA), the Moorpark Public Financing Authority (the PFA), and the Industrial Development
Authority of the City of Moorpark (the IDA).
The City was incorporated in July 1983 as a general law city and operates under a Council/Manager form of
government.
The RDA was formed in 1987 pursuant to the State of California Health and Safety Code, Section 33000
entitled "Community Redevelopment Law". Its purpose is to finance long-term capital improvements
designed to eliminate physical and economic blight in a project area.
The PFA was formed in 1993 as a joint powers authority between the City and the RDA in order to provide
financial assistance to the City and the RDA by issuing debt and financing the construction of public
facilities.
The IDA was formed in 1985 pursuant to the California Industrial Development Financing Act (the Act). Its
purpose is to finance the acquisition and development of certain industrial activities as permitted by the Act
and to issue bonds for the purpose of enabling industrial firms to finance the cost of such activities.
The criteria used in determining the scope of the reporting entity are based on the provisions of GASB
Statement No. 14 (as amended by GASB Statement No. 39). The City of Moorpark is the primary
government unit. Component units are those entities which are financially accountable to the primary
government, either because the City appoints a voting majority of the component unit's Board, or because the
component unit will provide a financial benefit or impose a financial burden on the City.
The City has accounted for the RDA, the PFA, and the IDA as "blended" component units. Despite being
legally separate, they are so intertwined with the City, it is in substance, part of the City's operations.
Accordingly, the balances and transactions of the RDA are reported as separate funds in the Special Revenue,
Debt Service, and Capital Projects Funds. The PFA and IDA are inactive. The following specific criteria
were used in determining that the RDA, the PFA, and the IDA are "blended" component units:
1) The members of the City Council also act as the governing body of the RDA, the PFA, and the IDA.
2) The City, the RDA, the PFA, and the IDA are financially interdependent. The City makes loans to the
RDA for use on redevelopment projects. Available property tax revenues of the RDA will be used to
repay the loans from the City.
29
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #1 SUMMARY OF SIGNIFICANTA CCO UNTING POLICIES, Continued
3) The RDA, the PFA, and the IDA are managed by employees of the City.
The financial statements for the RDA may be obtained at the City's administrative offices. The PFA and IDA
do not issue separate financial statements.
B. Participation in Public Entity Joint Powers Authority
The City is a member of the California Joint Powers Insurance Authority (the Authority). The Authority is
composed of 107 California public entities and is organized under a joint powers agreement pursuant to
California Government Code 6500 et seq. The purpose of the Authority is to arrange and administer
programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange
for group -purchased insurance for property and other coverages. The Authority's pool began covering claims
of its members in 1978. Each member government has an elected official as its representative on the Board of
Directors. The Board operates through a nine -member Executive Committee.
The City does not have an equity interest in the Authority; therefore, no amount has been reported in the
Statement of Net Assets. However, the City does have an ongoing financial interest because the City is able
to influence the operations of the Authority so that the Authority uses its resources on behalf of the City.
Also, an ongoing financial responsibility exists because the Authority is dependent on continued funding from
the City. The condensed financial information of the Authority has not been reproduced in this report, but is
available from the Authority.
C. Accounting and Reporting Policies
The City has conformed to the pronouncements of the GASB, which are the primary authoritative statements
of accounting principles generally accepted in the United States of America applicable to state and local
governments. In accordance with GASB Statement No. 20, the City applies all applicable Financial
Accounting Standards Board (FASB) pronouncements, as well as those of its predecessors, issued on or
before November 30, 1989, unless any such pronouncements contradict GASB pronouncements.
On July 1, 2004, the City adopted, GASB Statement No. 40, Deposit and Investment Risk Disclosures. This
Statement amends GASB Statement No.3, Deposits with Financial Institutions, Investments (including
Repurchase Agreements), and Reverse Repurchase Agreements to address common deposit and investment
risks related to credit risk, concentration of credit risk, interest rate risk and foreign currency risk. As an
element of interest rate risk, this Statement requires certain disclosures of investments that have fair values,
which are highly sensitive to changes in interest rates. Deposit and investment policies related to the risks
identified in this Statement also should be disclosed. See Note 92.
D. Description of Funds
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self -balancing
accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. The following are types
of funds used:
30
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #1 SUMMARY OF SIGNIFICANTA CCO UNTING POLICIES, Continued
Governmental Fund Types
• General Fund — Used to account for all financial resources except those required to be accounted for in
another fund.
• Special Revenue Funds — Used to account for the proceeds of specific revenue sources that are restricted
by law or administrative action for specified purposes.
• Debt Service Fund — The debt service fund is used to account for property tax increment revenue and
related interest income. Disbursements from this fund consist mainly of principal and interest on
indebtedness.
• Capital Projects Funds — Used to account for financial resources used for the construction of specific
capital projects.
Fiduciary Fund Type
Agency Funds — Used to account for assets held by the City as an agent for individuals, private
organizations, other governments and/or other funds.
E. Basis of Accounting and Measurement Focus
Government—Wide Financial Statements
The City's Government -Wide Financial Statements include a Statement of Net Assets and a Statement of
Activities. These statements present summaries of Governmental Activities for the City.
These statements are presented on an "economic resources" measurement focus and the accrual basis of
accounting. Accordingly, all of the City's assets and liabilities, including capital assets and infrastructure as
well as long-term debt, are included in the accompanying Statement of Net Assets. The Statement of
Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in
the period in which they are earned while expenditures are recognized in the period in which the liability is
incurred. The Statement of Activities demonstrates the degree to which the direct expenditures of a given
function are offset by program revenues. Direct expenditures are those that are clearly identifiable with a
specific function. The types of transactions reported as program revenues for the City are reported in three
categories: 1) charges for services, 2) operating contributions and grants, and 3) capital grants and
contributions. Charges for services include revenues from customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function. Operating contributions and
grants include revenues restricted to meeting the requirements of a particular operating function and may
include state shared revenues and grants. Capital contributions and grants include revenues restricted to
meeting the requirements of a particular capital function and may include grants and developer fees. Taxes
and other items not properly included among program revenues are reported instead as general revenues.
31
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #1 SUMMARY OF SIGNIFICANTA CCO UNTING POLICIES, Continued
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, payables, and receivables. All internal balances in the government -wide financial statements have
been eliminated.
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and Statement of Revenues, Expenditures,
and Changes in Fund Balances for all major governmental funds and aggregated non -major funds. An
accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in
these statements to the net assets presented in the Government -Wide Financial Statements. The City has
presented all major funds that met qualifications of GASB Statement No. 34. In addition, the City has
included funds that are significant to the City as major funds.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus
and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are
included on the Balance Sheets. The Statement of Revenues, Expenditures, and Changes in Fund Balances
present increases (revenues and other financing sources) and decreases (expenditures and other financing
uses) in fund balances. Revenues are recognized in the accounting period in which they become susceptible
to accrual, that is, when they become both measurable and available to finance expenditures of the current
period. "Measurable" means that the amount of the transaction can be determined, and "available" means
collectible within the current period or soon enough thereafter to be used to pay liabilities of the current
period. Accrued revenues include property taxes received within 60 days after year-end taxpayer assessed
taxes such as sales taxes, and earnings on investments. Grant funds earned but not received are recorded as a
receivable, and grant funds received before the revenue recognition criteria have been met are reported as
deferred revenues. Expenditures are recorded when the fund liability is incurred, if measurable, except for
unmatured interest on general long-term debt, which is recognized when due.
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial resources of the
City, except those required to be accounted for in another fund.
The Street and Traffic Safety Special Revenue Fund is used to account for fees used for street maintenance,
right-of-way acquisition and street construction.
The Community Development Special Revenue Fund is used to account for fees used in planning, building
and safety, and engineering services relating to community development.
The Areas of Contribution Special Revenue Fund is used to account for fees used for street and related
improvements to specific project areas and fund infrastructure enhancements as a result of additional
development.
32
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #1 SUMMARY OF SIGNIFICANTA CCO UNTING POLICIES, Continued
The Endowment Special Revenue Fund is used to account for funds received by the City for certain
development projects or other sources directed by the City Council to be held for the purpose of one-time
capital expenditure of community -wide benefit due to the impact of additional development.
The Park Improvement Special Revenue Fund is used to account for State and County grants used for
acquisition of open space and park improvements.
The Police Facilities Fee Capital Projects Fund is used to account for the funds used to build the new police
facility.
The RDA Capital Projects Fund is used to account for the funds used for the RDA's capital improvement
projects.
The RDA Debt Service Fund is used to account for the accumulation of resources for, and the payment of
principal and interest on the RDA's debt and other long-term obligations.
The City has presented all major funds as required by GASB Statement No. 34. In addition, the City has
presented the Community Development, Areas of Contribution, and Park Improvement Special Revenue
Funds as major based on their significance to the City as a whole.
Fiduciary Fund Financial Statements
Fiduciary Fund Financial Statements include a Statement of Net Assets. The fiduciary fund is used to report
assets held in a trustee or agency capacity for others and therefore are not available to support City programs.
Since these assets are being held for the benefit of a third parry, these funds are not incorporated into the
government -wide statements.
The City's only fiduciary fund is an agency fund, which uses the accrual basis of accounting to account for
amounts held for individuals, private organizations, other governments, and/or other funds. The agency fund
is custodial in nature (assets equal liabilities) and therefore does not involve measurement of results of
operations.
F. Budgetary Accountin
Annual budgets are adopted on a basis consistent with GAAP for all governmental funds. All annual
appropriations lapse at fiscal year-end. Throughout the year, the City Council made several supplementing
budgetary adjustments to the General Fund, Special Revenue Funds, Capital Projects Funds, and Debt Service
Fund. These adjustments resulted in a net appropriation increase of $7,656,871. This increase resulted
primarily from rebudgeted projects and amounts carried over from Fiscal Year 2003-2004 as continuing
appropriations.
33
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #1 SUMMARY OF SIGNIFICANTA CCO UNTING POLICIES, Continued
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is
restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes
exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the
taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a
deficit in the following year. For the fiscal year ended June 30, 2005, based on calculations by City
Management, proceeds of taxes did not exceed related appropriations.
G. Investments
The City has adopted the provisions of Governmental Accounting Standards Board (GASB) Statement
No. 31, Accounting and Financial Reporting for Certain Investments and External Pools, which require
governmental entities to report certain investments at fair value in the balance sheet and recognize the
corresponding change in the fair value of investments in the year in which the change occurred. In
accordance with GASB Statement No. 31, the City has adjusted certain investments to fair value (when
material).
Investments are included within the financial statement classifications of "Cash and investments" and
"Restricted cash and investments" and are stated at fair value, (see Note 92).
H. Property Held for Resale/Development
Property held for resale in the Low and Moderate Income Housing Special Revenue Fund and the Capital
Projects Fund represent land and buildings purchased by the Agency. Such property is valued at the lower of
cost or estimated net realizable value (as determined by a disposition and development agreement between the
Agency and a developer) and has been offset by a reservation of fund balance to indicate that assets constitute
future capital projects and are not available spendable resources.
L Capital Assets
Capital assets, which include land, machinery and equipment (vehicles, computers, etc.), buildings and
improvements, and infrastructure assets (street systems, storm drains, sewer systems, etc.), are reported in
Governmental Activities column of the Government -wide Financial Statements. Capital assets are defined by
the City as all land; buildings and improvements with an initial individual cost of more than $10,000;
vehicles, computers and equipment with an initial individual cost of more than $5,000; and improvements and
infrastructure assets with costs of more than $100,000. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated or annexed capital assets are recorded at estimated
market value at the date of donation or annexation.
34
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #1 SUMMARY OF SIGNIFICANTA CCO UNTING POLICIES, Continued
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized. Depreciation is recorded in the Government -wide Financial Statements on a
straight-line basis over the useful life of the assets as follows:
Buildings and improvements 25 to 50 years
Vehicles, computers, and equipment 3 to 20 years
Infrastructure Assets
Roadway Network 7 to 100 years
Drain Network 20 to 100 years
Parks and Recreation Network 50 years
J. Deferred Revenue
Deferred revenue is recorded monies collected in advance that have not been earned. As of June 30, 2005,
total deferred revenue reported is $635,224.
K. Long -Term Debt
In the government -wide financial statements, long-term debt and other long-term obligations are reported as
liabilities in the statement of net assets. Bonds payable are reported net of the applicable bond premium or
discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related
debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amounts of debt issuances are reported as
other financing sources. Issuance costs, whether or not withheld from the actual net proceeds received, are
reported as debt service expenditures.
L. Employee Compensated Absences
City employees may receive from 20 to 30 days vacation time or annual leave each year, depending upon
length of service. An employee may accumulate earned vacation time up to a maximum of 616 hours or
annual leave up to a maximum of 740 hours worth of accrued leave depending on position. Upon
termination, employees are paid the full value of their unused annual leave, administrative leave, vacation
time, and a portion of sick leave at their current salary. There is no fixed payment schedule for employee
compensated absences. Employees receive vacation and sick leave or annual leave, but not both categories.
M. Property Taxes
The duties of assessing and collecting property taxes are performed by the Ventura County (the County)
Assessor and Tax Collector, respectively. The City receives an allocation of property taxes collected by the
County with respect to property located within the City limits equal to 7.40% of the one 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.
35
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #1 SUMMARY OF SIGNIFICANTA CCO UNTING 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.
N. Claims and Judgments
When it is probable that a claim liability has been incurred, and the amount of the loss can be reasonably
estimated, the City records the estimated loss, net of any insurance coverage under its self-insurance program.
At June 30, 2005, in the opinion of the City Attorney, the City had no material claims, which require loss
provisions in the financial statements. Small claims and judgments are recorded as expenditures when paid.
The City's self-insurance program is administered through the California Joint Powers Authority (the CJPIA),
which is described in Note 911. The CJPIA is a public entity risk pool, which is accounted for under the
provisions of GASB Statement No. 10. Claim losses recorded in the CJPIA include both current claims and
Incurred But Not Reported claims (IBNR). Deposits to the CJPIA are recorded by the City as insurance
expenditures in the General Fund when paid. These deposits are subject to retrospective adjustment.
Favorable claims experience result in a refund of deposits from the CJPIA and such refunds, if any, are
recorded as a reduction of insurance expenditures in the year received. Adverse claims experience result in
the payment of additional deposits and such deposits, if any, are recorded as insurance expenditures when
paid.
O. Deferred Compensation
In October 1997, GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code
Section 457 Deferred Compensation Plans, was issued. This Statement establishes accounting and financial
reporting standards for Internal Revenue Code (IRC) section 457 deferred compensation plans of state and
local governments. Pursuant to the IRC 457 subsection (g), all amounts of compensation deferred under the
plan, all property, or rights are solely the property and rights of the employee and beneficiaries of the Plan.
Deferred compensation funds are not subject to the claims of the City's general creditors. The City has
established an eligible deferred compensation plan in accordance with subsection (g) of the IRC Section 457.
Under the provisions of this Statement, it is no longer considered appropriate to report the Section 457 plan in
the City's financial statements.
P. New Pronouncements
GASB Statement No. 42 - In November 2003, the GASB issued Statement No. 42, Accounting and
Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries. This statement requires
governments to measure, recognize, and disclose the effects of capital asset impairments in their financial
statements when it occurs. This statement also clarifies and establishes accounting requirements for insurance
recoveries, including those associated with capital asset impairment. This statement is not effective until
June 30, 2006. The City has not determined its effect on the financial statements.
Wo
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #1 SUMMARY OF SIGNIFICANTA CCO UNTING POLICIES, Continued
GASB Statement No. 43 - In April 2004, the GASB issued Statement No. 43, Financial Reporting for
Postemployment Benefit Plans Other Than Pension Plans. This statement establishes accounting and
financial reporting standards for plans that provide postemployment benefits other than pension benefits
(known as other postemployment benefits or OPEB). This statement is not effective until June 30, 2007.
This statement is not expected to have a significant impact on the financial statements of the City.
GASB Statement No. 44 - In May 2004, the GASB issued Statement No. 44, Economic Condition
Reporting: The Statistical Section, an amendment of NCGA Statement No. 1. This Statement amends the
portions of NCGA Statement 1, Governmental Accounting and Financial Reporting Principles, that guide the
preparation of the statistical section. The statistical section presents detailed information, typically in ten-year
trends, that assists users in utilizing the basic financial statements, notes to basic financial statements, and
required supplementary information to assess the economic condition of a government. This statement is not
effective until June 30, 2006. The City has not determined its effect on the financial statements.
GASB Statement No. 45 - In June 2004, the GASB issued Statement No. 45, Accounting and Financial
Reporting by Employers for Postemployment Benefits Other Than Pensions. This Statement establishes
standards for the measurement, recognition, and display of OPEB expense/expenditures and related liabilities
(assets), note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports
of state and local governmental employers. This statement is not effective until June 30, 2008. The City has
not determined its effect on the financial statements.
GASB Statement No. 46 — In December 2004, the GASB issued Statement No. 46, Net assets Restricted By
Enabling Legislation, an amendment of GASB No. 34. This statement clarifies that a legally enforceable
enabling legislation restriction is one that a parry external to a government can compel a government to honor.
Accordingly, it clarifies the determination of restricted net assets within the statement of net assets. This
statement is not effective until June 30, 2006. The City has not determined its effect on the financial
statements.
GASB Statement No. 47 — In June 2005, the GASB issued Statement No. 47, Accounting for Termination
Benefits. This statement establishes accounting standards for termination benefits. This statement is not
effective until June 30, 2006. The City has not determined its effect on the financial statements.
Q. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that effect certain reported
amounts and disclosures. Accordingly, actual results could differ from those estimates.
R. Use of Restricted Resources
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, and then unrestricted resources as they are needed.
37
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #2 CASHAND INVESTMENTS
Cash and investments at June 30, 2005, consisted of the following:
Citv Treasury Deposits
Demand deposits $ 1,240,580
Cash on hand 1,100
Total City Treasury Deposits 1,241,680
City Treasury Investments
Certificates of Deposit 1,100,000
LAIF 54,250,179
Ventura County Pool 6,803,858
U.S. Treasury Obligations 5,950,560
U.S. Agency Securities 3,920,363
Total City Treasury Investments 72,024,960
Cash and Investments With Fiscal Aaent
Money Markets 37,649
Guaranteed Investment Contracts 1,355,774
Total Cash and Investments With Fiscal Agent 1,393,423
Total Cash and Investments $ 74,660,063
Cash and investments are reported in the basic financial statements as follows:
Statement of Statement of
Net Assets Fiduciary Net Assets
Governmental
Activities
Cash and Investments
Restricted cash and investments
Total
$ 68,900,708
1,393,423
Agency Fund
$ 4,365,932
Total
$ 73,266,640
1,393,423
$ 70,294,131 $ 4,365,932 $ 74,660,063
The City follows the practice of pooling cash and investments of all funds, except for funds required to be
held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and
investments is allocated on a quarterly basis to the various funds based on average daily cash and investment
balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
38
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #2 CASHAND INVESTMENTS, Continued
A. Authorized Investments
Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government
Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of
the California Government Code (or the City's investment policy, where more restrictive) that address interest
rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt
proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than
the general provisions of the California Government Code or the City's investment policy. As of June 30,
2005, the only debt agreements of the City pertain to the Moorpark Redevelopment Agency.
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.
The Policy, in addition to State statutes, establishes that funds on deposit in banks must be federally insured
or collateralized and investments shall (1) have maximum maturity not to exceed five years and (2) be
laddered and based on cash flow forecasts. The City's investments comply with the established policy.
39
Maximum
Maximum
Authorized
Maximum
Percentage
Investment
Investment Type
Maturity
of Portfolio*
in One Issuer
U.S. Treasury Obligations
5 years
None
None
U.S. Agency Securities
5 years
None
None
Banker's Acceptances
180 days
40%
30%
Commercial Paper
270 days
25%
10%
Negotiable Certificates of Deposit
5 years
30%
None
Repurchase Agreements
1 year
20%
None
Medium -Term Notes
5 years
30%
None
Money Market Mutual Funds
N/A
20%
None
Mortgage Pass -Through Securities
5 years
20%
None
County Pooled Investment Funds
N/A
None
None
Local Agency Investment Fund (LAIF)
N/A
None
None
CALTRUST Investment Pool
N/A
None
None
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.
The Policy, in addition to State statutes, establishes that funds on deposit in banks must be federally insured
or collateralized and investments shall (1) have maximum maturity not to exceed five years and (2) be
laddered and based on cash flow forecasts. The City's investments comply with the established policy.
39
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #2 CASHAND INVESTMENTS, Continued
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather
than the general provisions of the California Government Code or the City's investment policy. The table
below identifies the investment types that are authorized for investment held by bond trustees. The table also
identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and
concentration of credit risk.
Authorized Investment Type
U.S. Treasury Obligations
U.S. Agency Securities
Banker's Acceptances
Commercial Paper
Money Market Mutual Funds
Investment Contracts
B. Interest Rate Risk
Maximum Maturity
None
None
180 days
270 days
N/A
30 years
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by
purchasing a combination of shorter term and longer term investments and by timing cash flows from
maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as
necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City's investments to market interest rate
fluctuations is provided by the following table that shows the distribution of the City's investments by
maturity:
Investment Type
Local Agency Investment Fund
Ventura County Pool
Certificates of Deposit
U.S. Treasury Notes
FHLB
FMCDN
Held by Bond Trustee:
Money Market Funds
Guaranteed Investment Contracts
Total
Investment Maturities (in Years)
Less than I Ito2 2to3 3to4 >5
$ 54,250,179 $ 54,250,179
6,803,858 6,803,858
1,100,000 $ 1,100,000
5,950,560 5,950,560
1,993,760 1,993,760
1,926,603 1,926, 603
37,649 37,649
1,355,774 $1,355,774
$ 73,418,383 $ 70,962,609 $ 1,100,000 $ - $ - $1,355,774
no]
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #2 CASHAND INVESTMENTS, Continued
C. Credit Risk and Concentration of Credit Risk
Deposits
At June 30, 2005, the carrying amount of the City's deposits was $1,240,580. Bank balances before
reconciling items were $2,085,376 at the date, the total amount of which was collateralized with securities
held by the pledging financial institution's trust department but not in the City's name.
The California Government Code requires California banks and savings and loan associations to secure the
City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this
manner shall have the effect of perfecting a security interest in such collateral superior to those of a general
creditor.
According to California law, the market value of pledged securities with banking institutions must equal at
least 110% of the City's cash deposits. California law also allows institutions to serve City deposits by
pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City
may waive collateral requirements for cash deposits, which are fully insured up to $100,000 by the Federal
Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.
Investments
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. Presented below is the minimum rating required by (where applicable) the California
Government Code and the actual rating as of year end for each investment type.
The California Government Code places limitations on the amount that can be invested in any one issuer (as
detailed above). Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and
external investment pools) that represent 5% or more of total investments are as follows:
Credit Quality Distribution for Securities with Credit Exposure as a Percentage of Total Investments
Carrying Credit Percentage of
Investment Type Value Rating Investments
Local Agency Investment Fund
Ventura County Pool
Certificates of Deposit
U.S. Treasury Notes
FHLB
FMCDN
Held by Bond Trustee:
Money Market Funds
Guaranteed Investment Contracts
Total
54,250,179
Not Rated
73.89%
6,803,858
Not Rated
9.27%
1,100,000
Not Rated
1.50%
5,950,560
AAA
8.11%
1,993,760
AAA
2.72%
1,926,603
AAA
2.62%
37,649 Not Rated 0.05%
1,355,774 Not Rated 1.85%
$ 73,418,383 100.00%
41
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #2 CASHAND INVESTMENTS, Continued
Investments in any one issuer that represent 5% or more of total investments by reporting unit (primary
government, governmental activities, major fund, non -major funds in the aggregate, etc.) are as follows:
$771,100 of the cash and investments (including amount held with bond trustee) reported in the
Redevelopment Agency Debt Service Fund (a major fund of the City) are held in the form of a nonnegotiable
unrated investment contract issued by Transamerica Occidental Life Insurance Company that matures on
October 1, 2018.
$584,674 of the cash and investments (including amount held with bond trustee) reported in the
Redevelopment Agency Debt Service Fund (a major fund of the City) are held in the form of a nonnegotiable
unrated investment contract issued by CDC that matures on October 1, 2031.
D. Local Agency Investment Fund (LAIF)
The LAIF is a special fund of the California State Treasury through which local governments may pool
investments. Each governmental agency may invest up to $40,000,000 in each account in the fund.
Investments in LAIF are highly liquid, as deposits can be converted to cash within twenty-four hours without
loss of interest or principal. The full faith and credit of the State of California secure investments in LAIF.
At June 30, 2005, accounts were maintained in the name of the City for $34,776,727 and the Redevelopment
Agency for $19,473,452. The total cost value of investments in LAIF was $54,250,179. The total fair value
of investments in LAIF was $54,127,984. The unrealized loss was based on a fair market value adjustment
factor of .997747553 that was calculated by the State of California Treasurer's Office. At June 30, 2005, the
market value of the State of California Pooled Money Investment Account (PMIA) including accrued interest
was $60,635,664,344, which included the Local Agency Investment Fund of $18,573,277,668. The State of
California Pooled Money Investment Account portfolio had securities in the form of structured notes totaling
$1,271,413,000 and asset-backed securities totaling $184,320,000. The PMIA has policies, goals, and
objectives for the portfolio to make certain that the goals of safety, liquidity, and yield are not jeopardized.
These policies are formulated by investment staff and reviewed by both the PMIB and LAIF Advisory Board
on an annual basis. LAIF's and the City's exposure to credit, market, or legal risk is not available.
E. The Ventura County Treasurer's Investment Pool
The City holds investments in the County Pool that are subject to being adjusted to "fair value". The City is
required to disclose its methods and assumptions used to estimate the fair value of its holdings in the County
Pool. The City relied upon information provided by the County Treasurer in estimating the City's fair value
position of its holdings in the County Pool. The City had a contractual withdrawal value of $6,803,858 at
fiscal year end.
The Ventura County Treasurer's Investment Pool is a governmental investment pool managed and directed by
the elected Ventura County Treasurer. The County Pool is not registered with the Securities and Exchange
Commission. An oversight committee, comprised of local government officials and various participants,
provide oversight to the management of the fund. The daily operations and responsibilities of the Pool fall
under the auspices of the County Treasurer's office. The City is a voluntary participant in the investment
pool.
M
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #3 NOTES AND LOANS RECEIVABLE
Notes and loans receivable activity for the year ended June 30, 2005, are as follows:
Notes Receivable
Janss IV Recreation Inc.
Asadurian
Mission Bell
Cabrillo
Deferred Property Assessments
Charles Abbott and Associates
Total Notes Receivable
Loans Receivable
Employee Computer
Rehabilitation
First-time Homeowners Assistance
CalHome
Total Loans Receivable
Total Notes and Loans Receivable
A. Janss Notes
Beginning Ending
Balance Increases Decreases Balance
$ 732,822
$ (732,822)
2,286
1,200,000
$
1,200,000
2,774,576
(39,480)
2,735,096
838,063
(838,063)
350,963
250,249
(58,822)
250,249
6,361
(6,361)
4,770,532
5,802,071
(1,616,726)
4,185,345
5,677
(3,391)
2,286
66,822
(19,272)
47,550
191,936
(7,548)
184,388
379,574
(28,611)
350,963
644,009
(58,822)
585,187
$6,446,080 $
- $(1,675,548) $
4,770,532
On February 19, 2003, the Redevelopment Agency of the City of Moorpark (the Agency) entered into an
agreement with Janss IV Recreation Inc. whereby the Agency loaned $400,000 in exchange for a promissory
note. The loan shall be for a term of thirty (30) years and shall bear interest at a rate of three percent (3%) per
annum for the first five (5) years, and at an adjustable rate not to exceed six percent (6%) per annum for the
remaining twenty five (25) years of the loan. Principal and interest shall be payable in monthly installments.
On April 15, 2005, the outstanding balance was paid in full.
On September 5, 2003, the Agency entered into an agreement with Janss IV Recreation Inc. whereby the
Agency loaned $350,000 in exchange for a promissory note. The loan shall be for a term of five (5) years
with monthly payments of $1,476 based on a thirty (30) year amortization and the balance of all principal and
accrued interest are due at the end of the five (5) year term. The note bears interest at a rate of three percent
(3%) per annum. On April 15, 2005, the outstanding balance was paid in full.
43
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #3 NOTES AND LOANS RECEIVABLE, Continued
B. Asadurian Note
On April 7, 2003, the City entered into an agreement with Asadurian Investment Corporation whereby in
return for land disposition, the City received a $1,200,000 promissory note. The note bears simple interest at
the rate equal to the average monthly interest rate announced by the Local Agency Investment Fund (LAIF).
The borrower shall pay to the City the amount of $80,000 plus interest over fifteen years. The first payment
is due prior to the first certificate of occupancy for the project, or April 2, 2005, whichever comes first. The
agreement was amended in June 2005. The first payment is now due 180 days following the issuance of the
fist certificate of occupancy or April 2, 2006, whichever comes first.
C. Mission Bell Note
On August 2, 1995, the Agency entered into an agreement with Mission Bell Partners whereby in return for
land disposition, the Agency received seven promissory notes totaling $3,934,500. The notes bear simple
interest from a rate of three percent to a rate of six percent per annum from August 29, 1995 until August 29,
2027. In June 2004 the Agency, per a settlement agreement, discharged four of the seven promissory notes
totaling $500,000. The balance of the remaining three notes outstanding at June 30, 2005, was $2,735,096.
Principal and interest payments are due annually on September 2"d
D. Cabrillo Note
On May 23, 2001, the Agency entered into an agreement with Cabrillo Economic Development Corporation
whereby in return for land disposition, the Agency received a $1,475,000 note. The note bears simple interest
at the rate equal to the quarterly interest rate announced by the Local Agency Investment Fund (LAIF).
Principal and interest are due and payable upon the sale of each designated market rate home. The borrower
shall pay to the City the amount of $33,523, which is equal to 1/44"' of the total principal due under this note
at the time of sale. This amount is disbursed to the Agency through the sales escrow. The balance
outstanding was paid in full as of April 14, 2005, with the sale of all remaining lots.
E. Deferred Property Assessment Notes
In March 1993, the City entered into three agreements with property owners of the City of Moorpark
Assessment District No. 92-1 whereby in return for deferring the property owner's assessment levy, the City
received three promissory notes totaling $279,427. The notes bear simple interest equivalent to the LAIF
variable rate not to exceed 7% per annum. Principal and interest are due on the date the City executes an
approved final map of the property or the date of a court ordered subdivide of the property. At June 30, 2005,
the principal balance outstanding was $250,249.
F. Charles Abbott and Associates Settlement Note
On April 2, 2002, the City entered into an agreement with Charles Abbott and Associates whereby in return
for deferred developer fees the City received a promissory note for $221,010. Principal is due in 18 monthly
payments. At June 30, 2005, the balance outstanding was paid in full.
44
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #3 NOTES AND LOANS RECEIVABLE, Continued
G. Employee Computer Loans
The City operates an employee computer loan program. The City allows employees to buy computers and
make payments over 3 years. The balance outstanding at June 30, 2005, was $2,286.
H. Rehab Loans
The Redevelopment Agency of the City of Moorpark (the Agency) operates a rehabilitation loan program for
the renovation of low -moderate income housing. The total balance outstanding at June 30, 2005, was
$47,550.
L First -Time Homeowners Down -Payment Assistance Program
The City operates a first-time homeowners down -payment assistance program. The total balance outstanding
at June 30, 2005, was $184,388 for City assisted loans and $350,963 for CatHome assisted loans.
Due To/Due From Other Funds
Due to/due from other funds for the year ending June 30, 2005, consisted of the following:
Due to the General Fund from:
Non -Major Special Revenue Funds $ 185,862
Due to Redevelopment Agency Capital Projects Fund from:
Non -Major Special Revenue Funds $ 188,834
Interfund Transfers
Interfund transfers for the year ended June 30, 2005, consisted of the following:
45
Transfer From
Areas of
Non -Major
General
Contribution
Debt Service
Governmental
Fund
Fund
Fund
Funds
Total
General Fund
$ 160,259
$ 160,259
0
Debt Service Fund
$ 152,674
152,674
Non -Major
H Governmental Funds
$ 909,509
$ 780,356
24,517
1,714,382
Total
$ 909,509
$ 160,259
$ 780,356
$ 177,191
$ 2,027,315
45
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #4 INTERFUND TRANSACTIONS, Continued
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund
that statute or budget requires to expend them and (2) use unrestricted revenues collected in the General Fund to
finance various programs accounted for in other funds in accordance with budgetary authorizations or grant
matching requirements.
The Debt Service Fund transferred funds to the Low/Mod Housing Special Revenue Fund to meet the low and
moderate income housing 20% tax increment set-aside requirement.
The Low/Mod Housing Special Revenue Fund transferred funds to the Debt Service Fund to pay the 20% debt
service on bond issues. The Debt Service Fund transferred funds to the Capital Projects Fund to fund future
capital projects.
Interfund Advances
During the fiscal year 2003-04 the City's General Fund advanced the Agency's Debt Service Fund $5,000,000 for
capital projects which will eliminate blighted project areas. The advance will bear interest at a rate equivalent to
the City investment in LAIF, plus one percent. In June 2005, the City renewed its advance to the Agency. The
Agency will repay the amounts advanced from the City, both principal and interest on our before June 30, 2006.
Also, during the fiscal year, the City's General Fund advanced the Agency's Capital Projects Fund $344,849 and
the Agency's Low/Mod Housing Special Revenue Fund $241,733 for redevelopment activities. These advances
will be paid back to the General Fund in July 2005.
The Endowment Fund has advanced to the Police Facilities Fee Fund $7,946,630 to fund Capital Improvements.
The advance is expected to be repaid with development fees to be collected in the future.
i,
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #5 CAPITAL ASSETS AND DEPRECIATION
In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the
Government -Wide Statement of Net Assets. The City elected to use the basic approach as defined by GASB
Statement No. 34 for all infrastructure reporting, whereby depreciation expense and accumulated depreciation has
been recorded. The following table presents the capital assets activity for the year ended June 30, 2005.
Governmental Activities
Capital Assets,
Not Being Depreciated:
Land
Construction in Progress
Total Capital Asset
Not Being Depreciated
Capital Assets, Being Depreciated:
Buildings and improvements
Machinery and equipment
Infrastructure
Roadway system
Storm drainage system
Parks system
Total Capital Assets,
Being Depreciated
Less Accumulated Depreciation For:
Buildings and improvements
Machinery and equipment
Infrastructure
Roadway system
Storm drainage system
Parks system
Total Accumulated Depreciation
Total Capital Assets,
Being Depreciated, Net
Governmental Activities Capital
Assets, Net
(See Note #15) Beginning
Beginning Prior Period Balance Ending
Balance Adjustment as Restated Increases Decreases Balance
$ 32,463,213 $ (2,022,164) $ 30,441,049 $ 400,638 $ 30,841,687
7,330,885 7,330,885 7,489,076 $ (101,584) 14,718,377
39,794,098 (2,022,164) 37,771,934 7,889,714 (101,584) 45,560,064
8,543,186 8,543,186 109,878 8,653,064
1,530,088 1,530,088 95,031 1,625,119
86,837,299 86,837,299 5,402 86,842,701
1,619,399 1,619,399 1,619,399
156,727 156,727 156,727
98,686,699 98,686,699 210,311 98,897,010
(2,656,542) (2,656,542) (240,985) (2,897,527)
(604,704) (604,704) (161,884) (766,588)
(21,433,383)
(21,433,383)
(1,798,689)
(23,232,072)
(103,729)
(103,729)
(16,191)
(119,920)
(36,047)
(36,047)
(3,135)
(39,182)
(24,834,405)
(24,834,405)
(2,220,884)
(27,055,289)
73,852,294
73,852,294
(2,010,573)
71,841,721
$ 113,646,392
$ (2,022,164) $ 111,624,228
$5,879,141
$ (101,584) $ 117,401,785
Depreciation expense was charged to the governmental functions/programs.
General government
Public safety
Public service, including depreciation of general infrastructure assets
Parks and recreation
Total Depreciation Expense
47
$ 22,755
18,503
1,956,497
223,129
$ 2,220,884
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #6 LONG-TERM LIABILITIES
Long-term liability activities for the year ended June 30, 2005, are as follows:
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% to 4.875% per annum, payable semi-annually on April 1 and October 1 of each
year, commencing on October 1, 1999, and are subject to mandatory sinking fund redemption commencing on
October 1, 2009, and on each October 1 thereafter. The Bonds are payable from and secured by the tax
revenues to be derived from the project area.
The bonds are secured by all property tax increment revenue, which is deposited directly with the fiscal agent
and recorded in the Debt Service Fund. Cash and investments in the custody of the fiscal agent are restricted
by the bond resolutions for payment of principal and interest on the Tax Allocation Bonds. In addition, the
bond resolutions require retention of funds held by the fiscal agent prior to use for other than debt service.
The Redevelopment Agency is in compliance with the covenants contained in debt indentures, which require
the establishment of certain specific accounts for the Tax Allocation Bonds.
Debt service payments on the 1999 Tax Allocation Refunding Bonds payable will be made from the Debt
Service Fund. Annual debt service requirements to maturity are as follows:
Year Ended
June 30
2006
2007
2008
2009
2010
2011-2015
2015-2020
Total
M.
Tax Allocation Bonds
Principal Interest
$ 405,000 $ 353,065
425,000 336,668
440,000
460,000
475,000
2,760,000
2,735,000
$ 7,700,000
319,148
300,583
279,759
1,015,952
274,828
$ 2,880,002
Total
$ 758,065
761,668
759,148
760,583
754,759
3,775,952
3,009,828
$ 10,580,002
Balance at
Beginning
Balance at
Due Within
of Year
Additions Reductions
End of Year
One Year
1999 Tax Allocation Bonds
$ 8,095,000
$ (395,000)
$ 7,700,000
$ 405,000
2001 Tax Allocation Bonds
11,610,000
(10,000)
11,600,000
15,000
Employee Compensated Absences
390,826
$108,136
498,962
$ 20,095,826
$108,136 $ (405,000)
$19,798,962
$ 420,000
A. 1999 Tax Allocation Bonds
In 1999, the Redevelopment Agency issued a $9,860,000 aggregated principal amount of Moorpark
Redevelopment Project 1999 Tax Allocation Refunding Bonds (the Bonds). The purpose of the Bonds was to
advance refund the Agency's previously issued $10,000,000 Moorpark Redevelopment Project, 1993 Tax
Allocation Bonds. The purpose of the 1993 Bonds was to finance a portion of the costs of implementing the
Redevelopment Plan, including low -and moderate -income housing projects. The 1999 Bonds bear interest at
rates ranging from 3.05% to 4.875% per annum, payable semi-annually on April 1 and October 1 of each
year, commencing on October 1, 1999, and are subject to mandatory sinking fund redemption commencing on
October 1, 2009, and on each October 1 thereafter. The Bonds are payable from and secured by the tax
revenues to be derived from the project area.
The bonds are secured by all property tax increment revenue, which is deposited directly with the fiscal agent
and recorded in the Debt Service Fund. Cash and investments in the custody of the fiscal agent are restricted
by the bond resolutions for payment of principal and interest on the Tax Allocation Bonds. In addition, the
bond resolutions require retention of funds held by the fiscal agent prior to use for other than debt service.
The Redevelopment Agency is in compliance with the covenants contained in debt indentures, which require
the establishment of certain specific accounts for the Tax Allocation Bonds.
Debt service payments on the 1999 Tax Allocation Refunding Bonds payable will be made from the Debt
Service Fund. Annual debt service requirements to maturity are as follows:
Year Ended
June 30
2006
2007
2008
2009
2010
2011-2015
2015-2020
Total
M.
Tax Allocation Bonds
Principal Interest
$ 405,000 $ 353,065
425,000 336,668
440,000
460,000
475,000
2,760,000
2,735,000
$ 7,700,000
319,148
300,583
279,759
1,015,952
274,828
$ 2,880,002
Total
$ 758,065
761,668
759,148
760,583
754,759
3,775,952
3,009,828
$ 10,580,002
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #6 LONG-TERMLIABILITIES, Continued
B. 2001 Tax Allocation Bonds
In December 2001, the Redevelopment Agency of the City of Moorpark issued $11,625,000 of Tax
Allocation Parity Bonds. The proceeds of the Bonds will be used to fund redevelopment activities within the
Moorpark Redevelopment Project area. Interest on the 2001 Bonds is payable semi-annually on April 1 and
October 1, commencing April 1, 2002, at rates ranging from 2.85% to 5.13% per annum. The 2001 Bonds
maturing October 2031, are subject to mandatory sinking fund redemption in the amount of the principal and
accrued interest. The Bonds are payable from and secured by the tax revenues to be derived from the project
area.
The Redevelopment Agency is in compliance with the covenants contained in debt indentures, which require
the establishment of certain specific accounts for the Tax Allocation Bonds.
Year Ended Tax Allocation Bonds
June 30
Principal
2006
$ 15,000
2007
15,000
2008
15,000
2009
15,000
2010
20,000
2011-2015
85,000
2016-2020
720,000
2021-2025
3,705,000
2026-2030
4,755,000
2031-2032
2,255,000
Total
$11,600,000
C. Employee Compensated Absences
Interest Total
$ 591,216
590,819
590,309
589,176
588,469
2,931,395
2,893,471
2,289,047
1,211,423
116,978
$12,392,303
$ 606,216
605,819
605,309
604,176
608,469
3,016,395
3,613,471
5,994,047
5,966,423
2,371,978
$ 23,992,303
The long-term liability at June 30, 2005, is $498,962 for employee compensated absences. There is no
current liability estimated. The General Fund is primarily expected to liquidate this liability.
D. Prior Year Defeasance of Debt
In 1999, the Agency defeased the 1993 Tax Allocation Revenue Bonds by placing the proceeds of new bonds
in an escrow account, with the 1999 Tax Allocation Refunding Bonds issue's trustee, to provide for all further
debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the
defeased bonds are not included in the Agency's financial statements. In October 2004, the remaining bonds
outstanding on the 1993 Tax Allocation Revenue Bonds were called in full.
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #7 AGREEMENTS WITH VARIOUS TAXING AGENCIES
The Moorpark Redevelopment Agency has entered into five (5) agreements for allocation and distribution of tax
increment revenues:
The first agreement is with the County of Ventura, Ventura County Library District, Ventura County Fire
Protection District, and Ventura County Flood Control District (collectively, the "County Taxing Entities"),
which provide for the Agency to retain 100% of the County Taxing Entities share (55.82%) of annual tax
increment revenues up to $1,750,000. For annual tax increment revenue in excess of $1,750,000, the Agency
shall distribute 55.82% of such revenues to the County on behalf of the County Taxing Entities. The County
Taxing Entities have agreed to defer payments in the initial years of the Redevelopment Plan, and consequently,
the parties agree that the County Taxing Entities may receive payments in any single fiscal year in excess of the
amount of tax revenues the County Taxing Entities would otherwise be entitled to, but for the adoption of the
Redevelopment Plan. Additionally, the agreement calls for the Agency to receive a $1,000,000 payment from the
tax increment disbursed to the County pursuant to the agreement, by December 31, 2008, if and only if the
Agency's annual debt statements which are filed with the County Auditor -Controller from fiscal year 1993-94 to
fiscal year 2008-09 list debts in an amount equal to or in excess of the maximum tax increment available to the
Agency in each of such fiscal years.
The second agreement is with the City of Moorpark Vector Control, formerly known as the Moorpark Mosquito
Abatement District and states that the City of Moorpark Vector Control shall receive 87.5% of its share (1.53%)
of annual tax increment revenue. The City of Moorpark Vector Control has agreed to contribute its pro rata share
of the Agency's required annual payment to the Agency.
The third agreement is with the Moorpark Unified School District (the School District), and states that the School
District shall receive, after the Agency has satisfied debt service payments to bond or note holders or to the holder
of any other instruments of Agency indebtedness (provided such indebtedness is not reasonably foreseeable to
impair the Agency's obligation under the agreement), the School District's share (33.41%) of tax increment
revenues generated by an annual two percent increase in assessed valuation, and beginning in fiscal year 1995-96,
14% 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. This payment was made by the Agency in August of 1999.
Per the agreement between the School District and the RDA of the City of Moorpark, the distributions to the
School District shall be expended for the following purposes at school sites in the incorporated boundaries of the
City:
1. Telephone systems for new buildings;
2. Computer hardware and educational systems;
3. Land acquisition;
4. Books; and
5. School buildings and facilities and related capital improvements and modernization projects (collectively
"public works"); such public works may include design, inspection and administration costs, but not
School District overhead or salary/benefits for regular School District employees.
The Agency may pre -approve other proposed expenditures that are submitted in writing by the School District.
50
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #7 AGREEMENTS WITH VARIOUS TAXING AGENCIES, Continued
The fourth agreement is with the Ventura County Community College District (the Community College District),
and states that the Community College District will receive, after the Agency has satisfied debt service payments
to bond or note holders or to the holders of any other instruments of Agency indebtedness (provided such
indebtedness is not reasonably foreseeable to impair the Agency's obligation under the agreement), the
Community College District's share (5.81%) of tax increment revenues generated by an annual two percent
increase in assessed valuation, and, beginning in fiscal year 1993-94, 14% of the Community College District's
share of annual tax increment revenue.
The fifth agreement is with the Ventura County Superintendent of Schools Office (the Superintendent), and states
that the Superintendent shall receive its share (2.49%) of tax increment revenues generated by an annual
two percent increase in assessed valuation.
NOTE #8 RETIREMENT PLAN
A. Plan Description
The City's defined benefit pension plan (the Plan) provides retirement and disability benefits, annual cost -of -
living adjustments, and death benefits to plan members and beneficiaries. The Plan is part of the Public
Agency portion of the California Public Employees Retirement System (Ca1PERS), and agent -multiple -
employer plan administered by Ca1PERS, which acts as a common investment and administrative agent for
participating public employers within the State of California. A menu of benefit provisions as well as other
requirements are established by State statutes within the Public Employees' Retirement Law. The City of
Moorpark selects optional benefits through local ordinance. Ca1PERS issues a separate comprehensive
annual financial report. Copies of Ca1PERS' annual financial report may be obtained from the Ca1PERS
Executive Office — 400 P. Street, Sacramento, CA 95814.
All full-time City employees are eligible to participate in the Plan. Part-time employees appointed to a term
of one year or longer and who work an average of 20 hours per week are also eligible to participate. Other
part-time non -benefited hourly employees do not participate in the Plan. (Effective January 1, 1992, such
part-time employees participate in a defined deferred compensation program). Related benefits vest after five
years of service. Upon five years of service, employees who retire at or after age 50 are entitled to receive an
annual retirement benefit.
The benefit is payable monthly for life, in an amount that varies from 1.426% at age 50 to 2% at age 55 to a
maximum of 2.418% at age 63, of the employees' average of the three highest year's salary for each year of
credited service. The Plan also provides death and disability benefits.
51
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #8 RETIREMENT PLAN, Continued
B. Fundin.. P�oligy
Active plan members in the Plan are required to contribute 7.00% of their covered salary. The City makes the
contribution required of City employees on their behalf. The City is also required to contribute the actuarially
determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and
assumptions used are those adopted by the Ca1PERS Board of Administration. The required employer
contribution rate for the fiscal year ended June 30, 2005, was 8.136°/x. 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, 2005, the City's annual pension cost and its actual contributions were $279,434.
Also, contributions made directly from employees were zero, but on behalf of the employees the City
contributed a total of $243,878. The required contribution for the year ended June 30, 2005, was determined
as part of the June 30, 2003, 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% investment rate
of return (net of administrative expenses); (b) projected salary increases that vary by duration of service
ranging from 3.75% to 14.20% for miscellaneous members: and; (c) zero percent cost -of -living adjustment.
Both (a) and (b) include an inflation component of 3.5%. The actuarial value of Miscellaneous Plan's assets
was determined using a technique that smoothes the effect of short-term volatility in the market value of
investments over a two to five year period depending on the size of investment gains and/or losses.
Miscellaneous Plan's unfunded actuarial accrued liability (or excess assets) is being amortized as a level
percentage of projected payroll on a closed basis. The remaining amortization period at June 30, 2003, was
three years.
Three -Year Trend Information
Fiscal Year Ending
6/30/2003
6/30/2004
6/30/2005
Funded Status of the Plan
Annual Pension Cost Percentage of APC Net Pension
(APC)
$ 31,456
126,573
279,434
Contributed
100%
100%
100%
Entry Age
Unfunded
Normal
Actuarial
(Overfunded)
Accrued
Value of
Liability
Valuation Date Liability
Assets
(UAAL)
6/30/2001 $4,380,051
$5,444,425
$ (1,064,374)
6/30/2002 $5,318,235
$5,366,749
$ (48,514)
6/30/2003 $6,795,694
$5,782,143
$ 1,013,551
52
Funded
Obligation
$0
$0
$0
Annual UAAL As a
Covered % of
Ratio Payroll Payroll
124.3% $2,756,860 (38.6)%
100.9% $3,057,091 (1.6)%
85.1% $3,413,736 29.7%
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #9 CONDUIT DEBT REVENUE BONDS
The City sponsored a revenue bond program during the year ended June 30, 1985, under which $20,000,000 of
Single -Family Residential Mortgage Revenue Bonds were issued. The Single -Family Mortgage program is
designed to provide funds to acquire mortgage loans on single-family residences located in the City. These bonds
are secured by a pledge of all loans receivable advanced from the bond proceeds by the trustee, First Interstate
Bank of California, and are serviced from payments on the loans to the Trustee. During the year ended June 30,
1995, the outstanding mortgages in this program were sold, the proceeds were used to establish an irrevocable
trust to defease the bonds at April 1, 1995, and the program was discontinued.
The City Council, serving as the Industrial Development Authority of the City of Moorpark, issued $9,300,000 of
Industrial Revenue Bonds during the year ended June 30, 1986. The bonds were issued to finance the
development and construction of manufacturing facilities for the Kavlico Corporation. These bonds are secured
by a standby letter of credit issued by Bank of America. Bank of New York serves as the Trustee for these bonds.
The unpaid principal balance on such bonds is $6,795,000 at June 30, 2005.
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, 2005, total $14,390,000.
The City of Moorpark Multifamily Housing Revenue Bonds (Vintage Crest Senior Apartment Project) 2002
Series A were issued in the amount of $16,000,000. The issuance was dated December 1, 2002. The Series A
Bonds were issued to fund a loan to Vintage Crest Senior Apartment L.P., a California Limited Partnership, to
finance the Vintage Crest Senior Housing Project. The bonds outstanding at June 30, 2005, totaled $16,000,000.
Each of the bond programs described above do not constitute an indebtedness of the City, and there is neither a
legal nor a moral obligation on the part of the City to make payments on such bonds from any source other than
the revenues and assets pledged therefore. The programs are completely administered by the Trustees without
any involvement by the City. Accordingly, these programs and the bonds issued thereunder have been excluded
from the accompanying basic financial statements.
53
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #10 SPECIAL ASSESSMENT BONDS
A. Mission Bell Plaza AD 92-1
On April 1, 1994, the City sponsored the issuance of special assessment bonds to finance certain capital
improvements for the Mission Bell Plaza project. These bonds, totaling $2,595,000, of which $735,000 and
$1,475,000 mature in 2013 and 2023, respectively, were issued under the 1915 Improvement Bond Act and
are obligations against the properties in the assessment district. The special assessment, which is collected
with other property related taxes as part of the secured property tax bill for properties in the assessment
district, will be forwarded to an independent bank that serves as the paying agent. These bonds do not
constitute an indebtedness of the City, and the City is not liable for their repayment. Accordingly, these
special assessment bonds payable have been excluded from the accompanying basic financial statements. The
unpaid principal balance on such bonds is $1,725,000 at June 30, 2005.
Seven properties in the assessment district, which had been zoned for commercial use prior to the City's
incorporation, are currently used for residential, commercial and agricultural purposes. At various times, the
City has advanced monies and contributed assessments on these properties from the Los Angeles Avenue
Area of Contribution Special Revenue Fund to the paying agent, which the paying agent has used to purchase
certain securities which have been placed in trust accounts to be used solely to provide for principal of and
interest on the seven properties' proportionate share of the bonds through maturity. Notes receivable, secured
by deeds of trust and various accounts receivable, have been established for these advances with interest
accruing at a variable rate equivalent to the rate at which the City earns on funds deposited in the State
Treasurer's Local Agency Investment Fund or 7%, whichever is less. Under the terms of the original
promissory notes, the notes and accrued interest are due at the earlier of (1) sale of the property, (2)
conversion of the property to a commercial use or (3) the maturity of the notes in March 2023. Subsequent to
June 30, 1998, the notes were amended and the repayment terms changed as follows: the notes and accrued
interest are due August 2029.
B. Community Facilities District No. 97-1
On July 1, 1997, the City issued bonds to finance the acquisition and construction of public improvements
within the City of Moorpark Community Facilities District No. 97-1. These bonds, totaling $7,645,000, were
issued pursuant to the Mello -Roos Community Facilities Act of 1982. The bonds mature on September 1,
2027 with interest payable at rates ranging from 4.4% to 6% 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 $6,920,000 at June 30, 2005.
54
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #11 RISK MANAGEMENT
A. Description of Self -Insurance Pool Pursuant to Joint Powers Agreement
The City is a member of the California Joint Powers Insurance Authority (the Authority). The Authority is
composed of 107 California public entities and is organized under a joint powers agreement pursuant to
California Government Code 6500 et seq. The purpose of the Authority is to arrange and administer
programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange
for group -purchased insurance for property and other coverages. The Authority's pool began covering claims
of its members in 1978. Each member government has an elected official as its representative on the Board of
Directors. The Board operates through a nine -member Executive Committee.
B. Self -Insurance Programs of the Authority
General Liability: Each member government pays a primary deposit to cover estimated losses for a fiscal
year (claims year). Six months after the close of a fiscal year, outstanding claims are valued. A retrospective
deposit computation is then made for each open claims year. Costs are spread to members as follows: the first
$30,000 of each occurrence is charged directly to the member; costs from $30,001 to $750,000 are pooled
based on a member's share of costs under $30,000; costs from $50,001 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 of Moorpark also participates in the workers' compensation pool
administered by the Authority. Members retain the first $50,000 of each claim. Claims are pooled separately
between public safety and non-public safety. Loss development reserves are allocated by pool and by loss
layer ($0 - $100,000 allocated by retained amount and $100,000 to $2,000,000 by payroll). Losses from
$50,000 to $100,000 and the loss development reserve associated with losses up to $100,000 are pooled based
on the member's share of losses under $50,000. Losses from $100,000 to 2,000,000 are pooled based on
payroll. Costs in excess of $50,000,000 are pooled among the Members based on payroll. Administrative
expenses are paid from the Authority's investment earnings.
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 $11,019,343. There is a $5,000 per loss deductible.
Premiums for the coverage are paid annually and are not subject to retroactive adjustments.
55
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #11 RISK MANAGEMENT, Continued
D. Earthquake and Flood Insurance
The City of Moorpark purchased earthquake and flood insurance on a portion of its property. The earthquake
insurance is part of the property protection insurance program of the Authority. The City of Moorpark
property currently has earthquake protection in the amount of $8,240,521. There is a deductible of
five percent of the value with a minimum deduction of $100,000. Premiums for the coverage are paid
annually and are not subject to retroactive adjustments.
E. Adequacy of Protection
During the past three fiscal (claims) years none of the above programs of protection have had settlements or
judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or
insured liability coverage from coverage in the prior year.
NOTE #12 CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE
In the Government -wide financial statements; net assets are classified in the following categories:
Invested in Capital Assets
This category groups all capital assets, including infrastructure, into one component of net assets. Accumulated
depreciation on these assets reduces this category.
Restricted Net Assets
This category presents external restrictions imposed by creditors, grantors, contributions, or laws and regulations
of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Assets
This category represents the net assets of the City that are not externally restricted for any project or other
purpose.
In the Fund Financial Statements, the City has established "reserves" to segregate portions of fund balance which
are not appropriable for expenditure in future periods, or which are legally set aside for a specific future use.
Fund "designations" also are established to indicate tentative plans for financial resource utilization of unreserved
fund balance in a future period.
W,
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #12 CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE, Continued
The City's governmental funds reserves and designations at June 30, 2005, are presented below, followed by
explanations of the nature and purpose of each reserve and designation.
Reserved:
Debt service
Property held for resale/development
hiterfund receivables
Housing set-aside
Total Reserved
Unreserved, designated:
Future projects
Reserved:
Debt service
Property held for resale/development
Interfund receivables
Housing set-aside
Total Reserved
Unreserved, designated:
Future projects
A. Reserved for Debt Service
These funds are reserved for restricted debt proceeds.
B. Reserved for Property Held for Resale/Development
Redevelopment
Agency
General Endowment Capital Projects
Fund Fund Fund
$ 5,772,444 $ 7,946,630
876,601
188,834
$ 5,772,444 $ 7,946,630 $ 1,065,435
Redevelopment
Agency
Debt Service
Fund
$ 1,393,423
$ 10,748,678
Non -Major
Governmental
Funds
$ 782,285
2,701,263
$ 1,393,423 $ 3,483,548
$ 885,897
These funds are reserved for property purchased by the City to be sold or otherwise used for the development
of the Redevelopment Agency Project Areas.
57
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #12 CLASSIFICATIONS OF NET ASSETS AND FUND BALANCE, Continued
C. Reserved for Housing Set -Aside
These funds are for the development of low and moderate -income housing.
D. Reserved for Interfund Receivables
These funds are reserved since the assets are not available for immediate appropriation.
E. Unreserved, Designated for Future Projects
These funds have been designated for future capital projects.
F. Deficit Fund Balance
The following fund had a deficit at June 30, 2005:
Police Facilities Fee Capital Projects Fund
The deficit will be made up through future police facilities assessment fees.
NOTE 1113 EXPENDITURES IN EXCESS OF APPROPRIATIONS
$ 7,198,710
The following funds had expenditures in excess of the budget in the following amount for the year ended June 30,
2005:
Redevelopment Agency Debt Service Fund
Community Development Special Revenue Fund
58
$ 123,746
$ 63,745
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE #14 COMMITMENTS AND CONTINGENCIES
A. Commitments
The City has contracts with the County of Ventura for various services, most notably law enforcement. These
service contracts are renegotiated annually and cancelable by the City or the County on May 31 of each year
after 30 days notice has been given. These are based on an hourly rate and adjusted throughout the fiscal
year.
B. Contingencies
There are certain legal actions pending against the City which management considers incident to normal
operations, some of which seek substantial monetary damages. In the opinion of management, after
consultation with counsel, the ultimate resolution of such actions is not expected to have a significant effect
on the financial position or the results of operations of the City.
The City has received State and Federal funds for specific purposes that are subject to review by the grantor
agencies. Although such audits could generate expenditure disallowances under the terms of the grants, it is
believed that any disallowed amounts will not be material.
59
CITY OF MOORPARK
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE H15 RESTATEMENT OF NET ASSETS AND FUND BALANCE
During fiscal year 2004-2005, it was found that the City had included property held for resale with the amount
reported as land in capital assets (see Note #5). The City recorded a restatement of beginning net assets in order
to correct this overstatement of capital assets.
Net Assets Beginning of Year, as Previously Reported $ 167,310,012
Correction of Capital Assets (2,022,164)
Correction of Property Held for Resale/Development 476,715
Correction of Prior Year Sales Tax 235,691
Net Assets Beginning of Year, as Restated $ 166,000,254
The City restated beginning fund balance in both the Low and Moderate Income Housing Special Revenue Fund
and the Redevelopment Agency Capital Projects Fund to correct the amounts for property held for resale to the
actual value of those assets. The City restated beginning fund balance in the General Fund to the actual sales tax
revenue accrual.
Fund Balance Beginning of Year, as Previously Reported
Correction of Property Held for Resale/Development
Correction of Prior Year Sales Tax Receivable
Fund Balance Beginning of Year, as Restated
Redevelopment
Low and Moderate
Agency Capital
Income Housing
General Fund Projects Fund
Special Revenue Fund
14,756,222 $ 10,674,891
$ 2,369,072
539,113
(62,398)
235,691
$ 14,991,913 $ 11,214,004 $ 2,306,674
60
SUPPLEMENTARY SCHEDULES
CITY OF MOORPARK
JUNE 30, 2005
MAJOR FUND BUDGETARY COMPARISON SCHEDULES
Budgetary comparison statements are presented as part of the basic financial statements for the General Fund and
all Major Special Revenue Funds as provided for by GASB Statement No. 34. The budgetary comparison
schedules for the remaining major funds are presented to aid in additional analysis and are not a required part of
the basic financial statements.
61
CITY OF MOORPARK
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
POLICE FACILITIES FEE CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2005
EXPENDITURES
Capital outlay 5,680,600 6,541,461 5,896,967 644,494
Net Change in Fund Balance (5,485,463) (6,346,324) (5,811,556) 534,768
Fund Balance, Beginning of Year
(1,387,154)
(1,387,154)
Variance with
Fund Balance, End of Year
$ (6,872,617)
$ (7,733,478)
Final Budget -
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
REVENUES
Use of money and property
$ 41,570 $ 41,570
$ (41,570)
Maintenance assessments
153,567 153,567
$ 85,411
(68,156)
Total Revenues
195,137 195,137
85,411
(109,726)
EXPENDITURES
Capital outlay 5,680,600 6,541,461 5,896,967 644,494
Net Change in Fund Balance (5,485,463) (6,346,324) (5,811,556) 534,768
Fund Balance, Beginning of Year
(1,387,154)
(1,387,154)
(1,387,154)
Fund Balance, End of Year
$ (6,872,617)
$ (7,733,478)
$ (7,198,710) $ 534,768
CL
CITY OF MOORPARK
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2005
REVENUES
Use of money and property
Other revenue
Total Revenues
EXPENDITURES
Current:
Public services
Capital outlay
Total Expenditures
Net Change in Fund Balance
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 248,510 $ 338,094 $ 414,131 $ 76,037
38,000 38,000 795,247 757,247
286,510 376,094 1,209,378 833,284
698,263 851,166 740,696 110,470
936,091 958,779 57,407 901,372
1,634,354 1,809,945 798,103 1,011,842
(1,347,844) (1,433,851) 411,275 1,845,126
Fund Balance, Beginning of Year, as restated 11,214,004 11,214,004 11,214,004
Fund Balance, End of Year $ 9,866,160 $ 9,780,153 $11,625,279 $ 1,845,126
63
CITY OF MOORPARK
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2005
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 3,812,753 $ 3,844,650 $3,901,779 $ 57,129
Use of money and property 115,000 115,000 163,949 48,949
Total Revenues 3,927,753 3,959,650 4,065,728 106,078
EXPENDITURES
152,674
152,674
152,674
Current:
(762,551)
(762,551)
(780,356) (17,805)
Public services
1,325,000
1,325,000
1,329,747 (4,747)
Debt service:
548,290
580,187
544,714 (35,473)
Principal
405,000
405,000
405,000
Interest
1,039,586
1,039,586
1,158,585 (118,999)
Total Expenditures
2,769,586
2,769,586
2,893,332 (123,746)
Excess of Revenues
Over (Under) Expenditures 1,158,167 1,190,064 1,172,396 (17,668)
OTHER FINANCING SOURCES (USES)
Transfers in
152,674
152,674
152,674
Transfers out
(762,551)
(762,551)
(780,356) (17,805)
Total Other Financing Sources (Uses)
(609,877)
(609,877)
(627,682) (17,805)
Net Change in Fund Balance
548,290
580,187
544,714 (35,473)
Fund Balance, Beginning of Year 501,993 501,993 501,993
Fund Balance, End of Year $ 1,050,283 $ 1,082,180 $1,046,707 $ (35,473)
64
CITY OF MOORPARK
JUNE 30, 2005
NON -MAJOR GOVERNMENTAL FUNDS
Special Revenues Fund Descriptions
Traffic Safety Fund
The Traffic Safety Fund is used to account for revenues collected from traffic fines and forfeitures, which is used
for crossing guards and parking enforcement.
Affordable Housing Fund (City)
The Affordable Housing Fund is used to account for grants used for development of affordable housing units.
Assessment District Fund
The Assessment District Fund is used to account for funds received by the City for maintenance of community-
wide landscaping.
State and Federal Assistance Fund
The State and Federal Assistance Fund is used to account for Federal and State grants used for the construction of
streets and related improvements and help fund law enforcement.
State Gas Tax Fund
The State Gas Tax Fund is used to account for fees used for street maintenance, right-of-way acquisition and
street construction.
Low and Moderate Income Housing Fund (MRA)
The Low and Moderate Income Housing Fund is used to account for the receipt of 20% of the gross tax increment
allocation, which is restricted for use on projects that increase or preserve the supply of low and moderate income
housing in accordance with Health and Safety Code Section 33334.
Local Transportation Transit Fund
The Local Transportation Transit Fund is used to account for fees used in local transportation and street projects
that help relieve traffic congestion programs and development.
Solid Waste Fund
The Solid Waste Fund is used to account for fees used on programs that promote resource, recycling, composting,
and proper disposal of hazardous household waste.
65
CITY OF MOORPARK
JUNE 30, 2005
NON -MAJOR GOVERNMENTAL FUNDS
(Continued)
Capital Proiects Fund Descriptions
City Hall Building Fund
The City Hall Building Fund is used to account for the funds used to build the new Civic Center Complex.
Equipment Replacement Fund
The Equipment Replacement Fund is used to account for the funds used to replace city equipment and vehicles.
.:
CITY OF MOORPARK
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2005
ASSETS
Cash and investments
Receivables:
Taxes
Accounts
Interest
Property held for resale/development
Total Assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued liabilities
Due to other funds
Retention payable
Deferred revenue
Deposits, principally from developers
Advances from other funds
Total Liabilities
FUND BALANCES
Reserved for:
Property held for resale/development
Housing set-aside
Unreserved, reported in:
Special revenue funds
Capital projects funds
Total Fund Balances
Total Liabilities and
Fund Balances
Special Revenue Funds
$ 556,187 $ 865,190 $ 2,392,840 $ 2,889,817
$ 3,444 $ 164,455 $ 20,616
374,696
1,599 6,023
4,578 77,507
3,444 170,632 478,842
552,743 $ 865,190 2,222,208 2,410,975
552,743 865,190 2,222,208 2,410,975
$ 556,187 $ 865,190 $ 2,392,840 $ 2,889,817
67
State and
Traffic Affordable
Assessment
Federal
Safety Housing
District
Assistance
$ 521,689 $ 865,190
$ 2,343,549
$ 2,774,291
4,578
34,498
44,713
115,526
$ 556,187 $ 865,190 $ 2,392,840 $ 2,889,817
$ 3,444 $ 164,455 $ 20,616
374,696
1,599 6,023
4,578 77,507
3,444 170,632 478,842
552,743 $ 865,190 2,222,208 2,410,975
552,743 865,190 2,222,208 2,410,975
$ 556,187 $ 865,190 $ 2,392,840 $ 2,889,817
67
Special Revenue Funds
Capital Projects Funds
Low and
Total
Moderate Local
Non -major
State Gas Income Transportation
Solid City Hall Equipment
Governmental
Tax Housing Transit
Waste Building Replacement
Funds
$ 565,593 $ 2,943,120 $ 276,173 $ 783,512 $ 466,062 $ 433,620 $ 11,972,799
4,578
68,877 15,219 72,788 34,162 385,783
5,421 5,421
782,285 782,285
$ 634,470 $ 3,746,045 $ 348,961 $ 817,674 $ 466,062 $ 433,620 $ 13,150,866
$ 85,919 $ 20,049 $ 35,026 $ 25,554 $ 5,824 $7,961 $ 368,848
374,696
5,032 12,654
313,935 396,020
715 715
241,733 241,733
90,951 262,497 348,961 25,554 5,824 7,961 1,394,666
782,285
2,701,263
782,285
2,701,263
543,519 792,120 7,386,755
460,238 425,659 885,897
543,519 3,483,548 792,120 460,238 425,659 11,756,200
$ 634,470 $ 3,746,045 $ 348,961 $ 817,674 $ 466,062 $ 433,620 $ 13,150,866
.:
CITY OF MOORPARK
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2005
REVENUES
Taxes
Fines and forfeitures
Use of money and property
Charges for services
Intergovernmental
Maintenance assessments
Franchise fees
Other revenue
Total Revenues
EXPENDITURES
Current:
Public safety
Public services
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Gain from sale of property
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
Special Revenue Funds
Traffic Affordable
Safety Housing
$ 194,898
9,731 $ 11,551
State and
Assessment Federal
District Assistance
$ 295
47,805 $ 48,185
2,653
816,917
1,394,152
35 360,573 1,597
204,664 372,124 1,446,502 865,102
123,105 1,021,431 131,375
15,636 36,496
1,332,436
28,863 220,368
123,105 15,636 2,382,730 388,239
81,559 356,488 (936,228) 476,863
859,026
859,026
81,559 356,488 (77,202) 476,863
471,184
508,702
2,299,410
1,934,112
$ 552,743 $
865,190 $
2,222,208
$ 2,410,975
r
Special Revenue Funds Capital Projects
Low and Total
Moderate Local Non -Major
State Gas Income Transportation Solid City Hall Equipment Governmental
Tax Housing Transit Waste Building Replacement Funds
1,275,911
1,034,357 424,139 545,707 321,920 2,378,255
1,332,436
69,982 107,115 79,745 24,451 530,524
1,104,339 424,139 652,822 321,920 79,745 24,451 5,517,126
(404,725) 500,853
(4,059) (69,191) (17,030) (15,470)
780,356
75,000 1,714,382
48,339
$ 295
(24,517) (152,674)
(177,191)
(24,517) 676,021
194,898
$ 17,725 $ 67,492 $
4,955
$ 16,516 $ 10,554 $
7,421 241,935
38,907
41,560
667,270
608,960
25,410
2,118,557
1,394,152
275,935
275,935
14,619 857,500
1,234,324
699,614 924,992
652,822
317,861 10,554
7,421 5,501,656
1,275,911
1,034,357 424,139 545,707 321,920 2,378,255
1,332,436
69,982 107,115 79,745 24,451 530,524
1,104,339 424,139 652,822 321,920 79,745 24,451 5,517,126
(404,725) 500,853
(4,059) (69,191) (17,030) (15,470)
780,356
75,000 1,714,382
48,339
48,339
(24,517) (152,674)
(177,191)
(24,517) 676,021
75,000 1,585,530
(429,242) 1,176,874
972,761 2,306,674
$ 543,519 $ 3,483,548 $
(4,059) (69,191) 57,970 1,570,060
796,179 529,429 367,689 10,186,140
- $ 792,120 $ 460,238 $ 425,659 $ 11,756,200
70
CITY OF MOORPARK
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC SAFETY SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2005
REVENUES
Fines and forfeitures
Use of money and property
Other revenue
Total Revenues
EXPENDITURES
Current:
Public safety
Net Change in Fund Balance
Fund Balance, Beginning of Year
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 120,000 $ 120,000 $ 194,898 $ 74,898
6,088 6,088 9,731 3,643
35 35
126,088 126,088 204,664 78,576
162,174 162,174 123,105 39,069
(36,086) (36,086) 81,559 117,645
471,184 471,184 471,184
Fund Balance, End of Year $ 435,098 $ 435,098 $ 552,743 $ 117,645
71
CITY OF MOORPARK
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AFFORDABLE HOUSING SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2005
REVENUES
Use of money and property
Other revenue
Total Revenues
EXPENDITURES
Current:
Public services
Net Change in Fund Balance
Fund Balance, Beginning of Year
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 10,766 $ 10,766 $ 11,551 $ 785
318,085 360,573 42,488
10,766 328,851 372,124 43,273
161,205 591,205 15,636
(150,439) (262,354) 356,488
508,702 508,702 508,702
575,569
618,842
Fund Balance, End of Year $ 358,263 $ 246,348 $ 865,190 $ 618,842
72
CITY OF MOORPARK
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ASSESSMENT DISTRICT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2005
REVENUES
Taxes
Use of money and property
Charges for services
Maintenance assessments
Other revenue
Total Revenues
EXPENDITURES
Current:
Public safety
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES
Transfers in
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
1,420,024 1,420,924 1,446,502 25,578
1,078,829
1,121,549
1,021,431
Variance with
1,430,077
1,486,705
1,332,436
Final Budget -
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 295
$ 295
$ 28,681
$ 28,681
47,805
19,124
2,700
2,700
2,653
(47)
1,388,643
1,388,643
1,394,152
5,509
900
1,597
697
1,420,024 1,420,924 1,446,502 25,578
1,078,829
1,121,549
1,021,431
100,118
1,430,077
1,486,705
1,332,436
154,269
426,447
460,996
28,863
432,133
2,935,353 3,069,250 2,382,730 686,520
(1,515,329) (1,648,326) (936,228) 712,098
957,448 935,630 859,026 (76,604)
(557,881) (712,696) (77,202)
2,299,410 2,299,410 2,299,410
$1,741,529 $1,586,714 $2,222,208 $
73
635,494
635,494
CITY OF MOORPARK
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
STATE AND FEDERAL ASSISTANCE SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2005
REVENUES
Use of money and property
Intergovernmental
Total Revenues
EXPENDITURES
Current:
Public safety
Public services
Capital outlay
103,000
138,975
131,375
Variance with
94,422
121,362
36,496
Final Budget -
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 30,442
$ 30,442
$ 48,185
$ 17,743
3,233,130
3,288,542
816,917
(2,471,625)
3,263,572
3,318,984
865,102
(2,453,882)
103,000
138,975
131,375
7,600
94,422
121,362
36,496
84,866
3,601,589
3,618,090
220,368
3,397,722
Total Expenditures
3,799,011
3,878,427
388,239
3,490,188
Net Change in Fund Balance
(535,439)
(559,443)
476,863
1,036,306
Fund Balance, Beginning of Year
1,934,112
1,934,112
1,934,112
Fund Balance, End of Year
$ 1,398,673
$1,374,669
$ 2,410,975 $ 1,036,306
74
CITY OF MOORPARK
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
STATE GAS TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2005
Total Revenues 648,003 648,003 699,614 51,611
EXPENDITURES
Current:
Public services 1,113,735 1,191,546 1,034,357 157,189
Capital outlay 55,147 138,562 69,982 68,580
Total Expenditures 1,168,882 1,330,108 1,104,339 225,769
Excess (Deficiency) of Revenues
Over (Under) Expenditures (520,879) (682,105) (404,725) 277,380
OTHER FINANCING USES
Transfers out (24,517) (2,676) (24,517) (21,841)
Net Change in Fund Balance (545,396) (684,781) (429,242) 255,539
Fund Balance, Beginning of Year 972,761 972,761 972,761
Fund Balance, End of Year $ 427,365 $ 287,980 $ 543,519 $ 255,539
75
Variance with
Final Budget -
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
REVENUES
Use of money and property
$ 17,003 $ 17,003
$ 17,725
$ 722
Intergovernmental
631,000 631,000
667,270
36,270
Other revenue
14,619
14,619
Total Revenues 648,003 648,003 699,614 51,611
EXPENDITURES
Current:
Public services 1,113,735 1,191,546 1,034,357 157,189
Capital outlay 55,147 138,562 69,982 68,580
Total Expenditures 1,168,882 1,330,108 1,104,339 225,769
Excess (Deficiency) of Revenues
Over (Under) Expenditures (520,879) (682,105) (404,725) 277,380
OTHER FINANCING USES
Transfers out (24,517) (2,676) (24,517) (21,841)
Net Change in Fund Balance (545,396) (684,781) (429,242) 255,539
Fund Balance, Beginning of Year 972,761 972,761 972,761
Fund Balance, End of Year $ 427,365 $ 287,980 $ 543,519 $ 255,539
75
CITY OF MOORPARK
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LOW AND MODERATE INCOME HOUSING SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2005
Total Revenues 40,000 90,952 924,992 834,040
EXPENDITURES
Current:
Public services 403,639 665,406 424,139 241,267
Excess (Deficiency) of Revenues
Variance with
Final Budget -
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
REVENUES
Use of money and property $ 40,000 $ 51,220
$ 67,492
$ 16,272
Other revenue 39,732
857,500
817,768
Total Revenues 40,000 90,952 924,992 834,040
EXPENDITURES
Current:
Public services 403,639 665,406 424,139 241,267
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(363,639)
(574,454)
500,853
1,075,307
OTHER FINANCING SOURCES (USES)
Transfers in
762,551
762,551
780,356
17,805
Gain from sale of property
48,339
48,339
Transfers out
(152,674)
(152,674)
(152,674)
Total Other Financing Sources (Uses)
609,877
609,877
676,021
66,144
Net Change in Fund Balance
246,238
35,423
1,176,874
1,141,451
Fund Balance, Beginning of Year, as restated
2,306,674
2,306,674
2,306,674
Fund Balance, End of Year
$2,552,912
$2,342,097
$3,483,548 $
1,141,451
CITY OF MOORPARK
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LOCAL TRANSPORTATION TRANSIT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2005
REVENUES
Use of money and property
Charges for services
Intergovernmental
Total Revenues
EXPENDITURES
Current:
Public services
Capital outlay
Total Expenditures
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Budgeted Amounts
Original Final
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 2,006
$ 2,006
$ 4,955 $
2,949
32,000
32,000
38,907
6,907
1,079,879
1,079,879
608,960
(470,919)
1,113,885 1,113,885 652,822 (461,063)
911,593 963,908 545,707 418,201
231,900 231,900 107,115 124,785
1,143,493 1,195,808 652,822 542,986
(29,608) (81,923)
$ (29,608) $ (81,923) $ - $
77
81,923
81,923
CITY OF MOORPARK
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SOLID WASTE SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2005
REVENUES
Use of money and property
Intergovernmental
Franchise fees
Total Revenues
EXPENDITURES
Current:
Public services
Net Change in Fund Balance
Fund Balance, Beginning of Year
Budgeted Amounts
Original Final
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$ 9,969
$ 9,969
$ 16,516 $
6,547
17,000
17,000
25,410
8,410
263,100
263,100
275,935
12,835
290,069 290,069 317,861 27,792
334,217 364,635 321,920 42,715
(44,148) (74,566) (4,059) 70,507
796,179 796,179 796,179
Fund Balance, End of Year $ 752,031 $ 721,613 $ 792,120 $ 70,507
78
CITY OF MOORPARK
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CITY HALL BUILDING CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2005
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 9,430 $ 9,430 $ 10,554 $ 1,124
EXPENDITURES
Capital outlay 1,585,000 1,734,130 79,745 1,654,385
Excess (Deficiency) of Revenues
Over(Under)Expenditures (1,575,570) (1,724,700) (69,191) 1,655,509
OTHER FINANCING SOURCES
Transfers in 1,100,000 1,100,000 (1,100,000)
Net Change in Fund Balances (475,570) (624,700) (69,191) 555,509
Fund Balance, Beginning of Year
529,429
529,429
529,429
Fund Balance, End of Year
$ 53,859
$ (95,271)
$ 460,238 $ 555,509
79
CITY OF MOORPARK
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
EQUIPMENT REPLACEMENT CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2005
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ 5,643 $ 5,643 $ 7,421 $ 1,778
EXPENDITURES
Capital outlay 17,800 25,061 24,451 610
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(12,157)
(19,418)
(17,030) 2,388
OTHER FINANCING SOURCES (USES)
Transfers in
75,000
75,000
Net Change in Fund Balance
(12,157)
55,582
57,970 2,388
Fund Balance, Beginning of Year
367,689
367,689
367,689
Fund Balance, End of Year
$ 355,532
$ 423,271
$ 425,659 $ 2,388
:1
CITY OF MOORPARK
STATEMENT OF CHANGES IN NET ASSETS
AGENCY FUND
FOR THE YEAR ENDED JUNE 30, 2005
ASSETS
Cash and investments
LIABILITIES
Accounts payable
Developer deposits
Total Liabilities
Balance Balance
July 1, 2004 Additions Reductions June 30, 2005
$ 2,120,412 $2,245,520 $ 4,365,932
$ 406,309 $ (99,596) $ 306,713
1,714,103 $ 2,345,116 4,059,219
$ 2,120,412 $2,345,116 $ (99,596) $ 4,365,932
81
STATISTICAL SECTION
CITY OF MOORPARK
REVENUES BY SOURCE
ALL GOVERNMENTAL FUND TYPES
LAST TEN FISCAL YEARS
Governmental Fund types include General Fund and all Special Revenue, Debt Service, and Capital Project
Funds.
(1) 1991 was the first year the Redevelopment Agency received tax increment. In 1992, the County of Ventura
impounded tax increment for the Redevelopment Agency and then released it in 1993.
(2) Franchise fees have been classified under licenses, permits, and fees effective in FY 2005.
Source: City of Moorpark
19-N
Taxes and
Licenses
Revenue
Use of
Fiscal
Assessments
Permits and
From Other
Maintenance
Money &
Other
Total
Year
(1)
Fees (2)
Agencies
Assessments
Property
Revenue
Revenue
1996
$ 4,282,265
$ 2,672,673
$ 1,021,458
$ 2,991,121
$ 2,320,057
$ 1,746,631
$ 15,034,205
1997
6,349,631
4,693,256
1,373,726
1,641,622
1,984,162
493,938
16,536,335
1998
4,879,322
4,587,138
1,170,287
1,630,996
1,988,731
623,362
14,879,836
1999
5,486,444
4,033,723
849,089
3,856,911
2,691,285
709,444
17,626,896
2000
6,099,037
4,377,998
4,325,305
3,197,752
2,384,356
946,795
21,331,243
2001
7,036,031
6,954,690
1,688,714
6,385,546
2,987,920
1,337,640
26,390,541
2002
7,162,650
6,352,828
2,102,594
5,076,057
2,208,850
2,191,685
25,094,664
2003
8,490,985
7,510,604
4,051,263
2,955,340
2,027,190
1,414,161
26,449,543
2004
9,870,955
7,628,347
4,298,009
2,639,628
1,363,006
2,589,938
28,389,883
2005
9,139,722
6,355,629
5,150,992
1,963,190
1,924,579
5,735,955
30,270,067
Governmental Fund types include General Fund and all Special Revenue, Debt Service, and Capital Project
Funds.
(1) 1991 was the first year the Redevelopment Agency received tax increment. In 1992, the County of Ventura
impounded tax increment for the Redevelopment Agency and then released it in 1993.
(2) Franchise fees have been classified under licenses, permits, and fees effective in FY 2005.
Source: City of Moorpark
19-N
CITY OF MOORPARK
EXPENDITURES BY FUNCTION
ALL GOVERNMENTAL FUND TYPES
LAST TEN FISCAL YEARS
Fiscal
General
Public
Public
Year
Government
Safety
Services
1996
$ 1,530,824
$ 2,618,063
$ 2,533,477
1997
1,386,598
2,807,382
3,960,313
1998
1,631,787
3,026,724
3,599,360
1999
1,993,878
3,102,834
3,148,264
2000
1,168,049
3,476,781
5,070,009
2001
1,601,638
3,830,253
5,035,651
2002
1,809,125
3,905,096
6,962,490
2003
2,048,658
4,127,670
8,704,302
2004
2,259,017
4,882,547
8,401,453
2005
2,893,359
5,690,820
8,098,147
Parks &
Capital
Debt
Recreation
Outlay
Service
Total
$ 1,263,862
$ 5,740,952
$ 2,582,130
$ 16,269,308
1,336,029
3,452,115
1,125,199
14,067,636
1,381,058
1,081,814
1,268, 704
11,9 89,447
1,385,376
1,965,474
4,156,354
15,752,180
1,383,146
5,355,271
3,564,305
20,017,561
1,851,648
6,888,258
2,767,770
21,975,218
1,921,588
4,789,732
1,125,529
20,513,560
2,063,428
3,596,982
1,409,915
21,950,955
2,381,698
8,775,159
1,495,996
28,195,870
2,081,723
7,810,879
1,563,585
28,138,513
Governmental Fund Types include General Fund and all Special Revenue, Debt Service, and Capital Projects
Funds.
Source: City of Moorpark
83
CITY OF MOORPARK
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Source: Ventura County Assessor
84
Total
Fiscal
Net Secured
Net Unsecured
Net Assessed
Percent
Homeowner's
Year
Roll
Roll
Roll
Change
Exemptions
1996
$ 1,784,220,963
$ 63,819,253
$ 1,848,040,216
3.3%
$ 37,421,267
1997
1,848,655,764
68,944,812
1,917,600,576
3.8%
38,289,239
1998
1,920,177,164
70,911,851
1,991,089,015
3.8%
39,313,581
1999
2,035,487,530
85,464,519
2,120,952,049
10.6%
40,240,720
2000
2,149,505,500
84,834,286
2,234,339,786
12.2%
40,687,060
2001
2,421,104,221
92,634,149
2,513,738,370
18.5%
40,786,802
2002
2,549,782,519
94,204,773
2,643,987,292
18.3%
41,025,922
2003
2,823,727,286
120,175,258
2,943,902,544
17.1%
42,238,926
2004
3,026,137,647
155,943,246
3,182,080,893
20.4%
43,185,512
2005
3,231,418,940
172,769,806
3,404,188,746
15.6%
43,305,637
Source: Ventura County Assessor
84
CITY OF MOORPARK
SECURED TAX CHARGE AND DELINQUENCIES
LAST TEN FISCAL YEARS
Source: California Municipal Statistics, Inc.
85
Amount
Percent
Fiscal
Secured
Delinquent
Delinquent
Year
Tax Charge
June 30
June 30
1996
$ 1,109,404
$ 26,390
2.4%
1997
1,158,953
24,705
2.1%
1998
1,191,918
21,807
1.8%
1999
1,374,741
25,687
1.9%
2000
1,410,082
25,054
1.8%
2001
1,573,688
67,292
4.3%
2002
1,832,673
29,778
1.6%
2003
2,036,839
27,584
1.4%
2004
2,208,605
27,811
1.3%
2005
2,391,927
32,746
1.4%
Source: California Municipal Statistics, Inc.
85
CITY OF MOORPARK
DIRECT AND OVERLAPPING BONDED DEBT
2004-2005 Assessed Valuation: $ 3,448,666,104
Redevelopment Incremental Valuation: 366,112,097
Adjusted Assessed Valuation: $ 3,082,554,007
Overlapping General Fund Obligation Debt:
Ventura County General Fund Obligations 4.268% $ 4,224,253
Ventura County Pension Obligations 4.268% 2,368,740
Ventura County Superintendent of Schools Certificates of Participation 4.268% 591,331
Ventura County Community College District COPS 4.269% 277,058
Moorpark USD Certificates of Participation 92.121% 9,603,614
Total Overlapping General Fund Obligation Debt $ 17,064,996
Combined Total Debt* $ 49,737,784
Ratios to 2004-2005 Assessed Valuation:
Direct Debt 0.00%
Total Direct and Overlapping Tax & Assessment Debt 95.00%
Ratio to Adjusted Assessed Valuation
Combined Total Debt 1.61%
State School Building Aid Repayable as of 6/30/05 0
* Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds, and non -
bonded capital lease obligations.
Note: The direct and overlapping bonded debt above is not the City's or the Redevelopment Agency's obligation.
Source: California Municipal Statistics, Inc.
::
Percent
Debt
Direct and Overlapping Tax and Assessment Debt:
Applicable
at 6/30/05
Metropolitan Water District
0.232%
$ 972,985
Ventura Community College District
4.269%
2,954,148
Conejo Valley Unified School District
2.200%
13,048
Moorpark Unified School District
92.121%
20,087,607
City of Moorpark
100.000%
0
City of Moorpark Community Facilities District No. 97-1
100.000%
6,920,000
City of Moorpark 1915 Act Bonds
100.000%
1,725,000
Total Direct and Overlapping Tax & Assessment Debt
$ 32,672,788
Overlapping General Fund Obligation Debt:
Ventura County General Fund Obligations 4.268% $ 4,224,253
Ventura County Pension Obligations 4.268% 2,368,740
Ventura County Superintendent of Schools Certificates of Participation 4.268% 591,331
Ventura County Community College District COPS 4.269% 277,058
Moorpark USD Certificates of Participation 92.121% 9,603,614
Total Overlapping General Fund Obligation Debt $ 17,064,996
Combined Total Debt* $ 49,737,784
Ratios to 2004-2005 Assessed Valuation:
Direct Debt 0.00%
Total Direct and Overlapping Tax & Assessment Debt 95.00%
Ratio to Adjusted Assessed Valuation
Combined Total Debt 1.61%
State School Building Aid Repayable as of 6/30/05 0
* Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds, and non -
bonded capital lease obligations.
Note: The direct and overlapping bonded debt above is not the City's or the Redevelopment Agency's obligation.
Source: California Municipal Statistics, Inc.
::
CITY OF MOORPARK
COMPUTATION OF LEGAL DEBT MARGIN AND
BREAKDOWN OF GENERAL PROPERTY TAX LEVY
Legal Debt Margin as of June 30, 2005
Assessed Valuation:
Secured property assessed value: $ 3,231,418,940
Bonded Debt Limit (15% of Assessed Value)
484,712,841
Amount of Debt Subject to Debt Limit
Total Bonded Debt $ 19,300,000
Less CRA Tax Allocation Bonds 19,300,000
Amount of Debt Subject to Debt Limit:
Breakdown of General Property Tax Levy
In accordance with the California State Constitution as amended by Proposition 13
in 1978, property taxes are limited to $1 per $100 of valuation unless additional
levies are approved by the general electorate. Most local public agencies receive
a share of the "general levy" ($1 per $100 of valuation) in accordance with State
statutes. The following is a breakdown of the proportional shares of the "General Levy":
Moorpark Unified School District
33.50%
County of Ventura General Fund
17.20%
Fire Protection District
15.10%
E.R.AF 93-94 Shift
8.80%
City of Moorpark
7.40%
Education Revenue Augmentation
5.50%
Ventura Community College
5.80%
Ventura Co. Superintendent of Schools
2.60%
County Library
1.67%
County Flood Zone 93
1.26%
Calleguas Municipal Water
0.90%
Ventura County Flood Control Admin
0.26%
Ventura College Child Care
0.03%
Total
100.00%
Source: City of Moorpark, Ventura County Assessor, and HdL Coren & Cone
87
CITY OF MOORPARK
CITY POPULATION
LAST TEN FISCAL YEARS
* Estimated
Source: City of Moorpark and State Department of Finance
88
Percent
Year
Population
Change
1996
27,752
2.4%
1997
28,377
2.3%
1998
29,300
3.3%
1999
29,589
1.0%
2000
29,727
0.5%
2001
32,150
8.2%
2002
33,760
5.0%
2003
34,529
2.3%
2004
34,933
1.2%
2005
35,933 *
2.9%
* Estimated
Source: City of Moorpark and State Department of Finance
88
CITY OF MOORPARK
BUILDING PERMIT VALUATION
LAST TEN FISCAL YEARS
Source: City of Moorpark
Commercial
Valuation
6,869,232
27,460,489
18,950,107
6,538,260
9,786,014
7,046,028
4,058,411
44,831,413
7,036,134
6,239,126
Number
of
Permits
65
85
131
90
59
69
101
316
152
176
Total Permit
Valuation
52,677,008
51,735,098
25,281,886
9,650,963
55,084,680
83,910,066
80,342,777
121,978,843
54,993,525
36,750,198
Number
Fiscal
Residential
of
Year
Valuation
Permits
1996
$ 45,807,776
443
1997
24,274,609
364
1998
6,331,779
258
1999
3,112,703
213
2000
45,298,666
386
2001
76,864,038
581
2002
76,284,366
667
2003
77,147,429
1,570
2004
47,957,391
1,024
2005
30,511,072
866
Source: City of Moorpark
Commercial
Valuation
6,869,232
27,460,489
18,950,107
6,538,260
9,786,014
7,046,028
4,058,411
44,831,413
7,036,134
6,239,126
Number
of
Permits
65
85
131
90
59
69
101
316
152
176
Total Permit
Valuation
52,677,008
51,735,098
25,281,886
9,650,963
55,084,680
83,910,066
80,342,777
121,978,843
54,993,525
36,750,198
CITY OF MOORPARK
LARGEST PROPERTY OWNERS
Property Owner
Autosafe Airbag Limited Partnership
Fred Kavli
Toll California Limited Partnership
Majestic Court Properties LLC
Zelman Moorpark LLC
G S Partnership
Calabasas BCD Inc.
James Birkenshaw, Et Al
Augusta Homes
Laars Inc.
Source: Hdl Coren & Cone and Ventura County Assessor
90
Assessed
Value of
Property
$ 75,562,789
40,962,302
37,043,364
32,956,656
24,047,542
19,363,532
18,568,249
18,200,526
14,289,468
13,999,152
CITY OF MOORPARK
MISCELLANEOUS STATISTICS
Year of Incorporation:
1983
Form of Government:
Council - Manager
General Law City
Most Recent Population Estimate:
35,933
Registered Voters:
16,750
City Employees (Approximate):
Full-time:
55
Part-time:
45
Fire Protection:
(Provided by Ventura County)
Number of Stations:
2
Number of Firefighters:
7
Police Protection:
(Contract with Ventura County Sheriff)
Number of Stations:
2
Number of Police Officers:
20
Number of Support Personnel:
4
91
Parks & Recreation:
Number of Parks 15
Park Acreage 160 acres
Education (Number of Schools):
High Schools 3
Middle Schools 2
Elementary Schools 6
Number of Community Facilities
City Civic Buildings 1
Libraries 1
Community Centers 2
Senior Centers 1
Gym 1
Activity Rooms for Rentals 4