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HomeMy WebLinkAboutACFR 2007 4 . rity 7.2. r� .a, ..,,,,,I 0 ,,,„ ,.._ � aCalifornia1i oy �r ' off, �. .,.M. ; ..., �.�n.�e r• °'� 14 �.n nw�.'. ,• •.'r.:.xn,rw�...r uw,�`n'�4'Y@"aii.�{. rv.M.w1:�'r,;r"�.'�;4�..^"�"+vrv}ffi`�M p.l�� ,. 1 I 1 l+^ • o x •'fir a1Jiffti 1A L ., .' I -it -T7.--,.,,,,-3 ii : !J. !.' I`. II i, 1i9 i j .,°,7,..._.s.',......i.,..:,,,..-.'i.,, 4 Sae R las r r .11 }s Q 1t�Liiiiiiii Pr.�s .,.__S7 414 llyil Ir Ir- ( i' , "4" \ F:.•.:V' �-{ . r r , 111111 ``p I • i ,.., + 11.1_ i . 4�''. 11 9 `� i1 .. • e #r•` Y. 1 !...`";,-;r d,4,t,',.., IT ,...I / ; 9i N1^C 3' ri ,..•...;:•,,.,;.1',...i':„F t +CF d ,..:•.•.-f 6 S .r;{,{ 4*.tilf iilf•::::?..:• -r" '.'' '' ''.' ''''.''.'''../ 1 '.tei.;!Li.kt%thvs"i'iiitt,"!,,,., fill( ill /r.': 4 -., r. s I fY t ir a w n. i.l.. ::(� ' they ',,' v �', ', 1q iS �y�•r'�� 414( "\ , ,§ !'2 - � 41 - ... , zM. ' 1 I • • + �1'` u � - o �. $ �` ' e1 +: ; ` �I�i�B�+'!#'��i„ 3)� ,l'�14'"' i',.!:-,•• I � NF r�,� M liVim. b ` i . 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Top Right : Arroyo Vista Recreation Center located at 4550 Tierra Rejada Road. Bottom Left : Tierra Rejada Park located at 11900 Mountain Trail Street . The City of Moorpark currently maintains sixteen (16) park sites . The city is responsible for maintaining the grounds, equipment and facilities of city parks; coordinating the design and construction of park improvements; and planning future parks . The parks are available to the community to reserve to host parties, special events, recreational activities, and sports programs . Bottom Right : Moorpark City Library Located at 699 Moorpark Avenue . In January 2007, the City established and opened the Moorpark City Library which had previously been operated by the County of Ventura . The Moorpark City library is open 7 days a week and employs 6 . 5 full- time equivalent staff . Day to day operation of the Library is the responsibility of the Parks, Recreation, and Community Services Department who contracts with Library Systems and Services to provide staffing and daily operational support . Books, media, databases, and technology are available for children, teens, and adults; allowing everyone convenient access to information . CITY OF MOORPARK, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2007 Prepared By: Finance Department City of Moorpark Comprehensive Annual Financial Report Year Ended June 30,2007 TABLE OF CONTENTS PAGE I. INTRODUCTORY SECTION Letter of transmittal i-vi Directory of Officials vii Organizational Chart viii Awards for Financial Reporting ix II. FINANCIAL SECTION Independent Auditors'Report 1 Management Discussion&Analysis 2- 13 Basic Financial Statements: Government-wide Financial Statements Statement of Net Assets 14 Statement of Activities 15 Fund Financial Statements Balance Sheet-Governmental Funds 16- 17 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 18 Statement of Revenues,Expenditures and Changes in Fund Balances-Governmental Funds 19-20 Reconciliation of the Statement of Revenues,Expenditures,and Changes in Fund Balances of Governmental Funds to the Statement of Activities 21 Statement of Fiduciary Assets and Liabilities 22 Notes to Financial Statements 23 -50 Required Supplementary Information: Statement of Revenues,Expenses and Changes in Fund Balance-Budget and Actual- General Fund 51 Statement of Revenues,Expenses and Changes in Fund Balance-Budget and Actual- Street and Traffic Safety Development Special Revenue Fund 52 Statement of Revenues,Expenses and Changes in Fund Balance-Budget and Actual- Community Development Special Revenue Fund 53 Statement of Revenues,Expenses and Changes in Fund Balance-Budget and Actual- Areas of Contribution Special Revenue Fund 54 Statement of Revenues,Expenses and Changes in Fund Balance-Budget and Actual- Endowment Special Revenue Fund 55 Statement of Revenues,Expenses and Changes in Fund Balance-Budget and Actual- Park/Public Facilities Special Revenue Fund 56 Supplementary Information: Budgetary Comparison Schedules-Major Fund Schedule of Revenues,Expenditures,and Changes in Fund Balances-Budget and Actual: Police Facilities Fee Capital Projects Fund 57 Redevelopment Agency Capital Projects Fund 58 Redevelopment Agency Debt Service Fund 59 Non-Major Governmental Funds 60 Combining Balance Sheet 61 -62 Combining Statement of Revenues,Expenditures and Changes in Fund Balance 63-64 Schedule of Revenues,Expenditures,and Changes in Fund Balances-Budget and Actual: Traffic Safety Special Revenue Fund 65 City of Moorpark Comprehensive Annual Financial Report Year Ended June 30,2007 TABLE OF CONTENTS-Continued Supplementary Information-Continued: Affordable Housing Special Revenue Fund 66 Assessment District Special Revenue Fund 67 State and Federal Assistance Special Revenue Fund 68 State Gas Tax Special Revenue Fund 69 Low and Moderate Income Housing Special Revenue Fund 70 Local Transportation Transit Special Revenue Fund 71 Solid Waste Special Revenue Fund 72 City Hall Building Capital Projects Fund 73 Equipment Replacement Capital Projects Fund 74 Statement of Changes in Net Assets-Agency Funds 75 III. STATISTICAL SECTION Net Assets by Component-Last Five Fiscal Years 76 Changes in Net Assets Governmental Activities-Last Five Fiscal Years 77 Fund Balances of Governmental Funds-Last Five Fiscal Years 78 Changes in Fund Balances of Governmental Funds-Last Five Fiscal Years 79 Assessed Value and Estimated Actual Value of Taxable Property-Last Nine Fiscal Years 80 Direct and Overlapping Property Tax Rates-Last Eight Fiscal Years 81 Principal Property Tax Payers-Current Year and Six Years Ago 82 Property Tax Levies and Collections-Last Ten Fiscal Years 83 Ratios of Outstanding Debt by Type-Last Eight Fiscal Years 84 Ratio of General Bonded Debt Outstanding-Last Eight Fiscal Years 85 Direct and Overlapping Debt 86 Legal Debt Margin Information-Last Eight Fiscal Years 87 Pledged Revenue Coverage-Last Six Fiscal Years 88 Demographic and Economic Statistics-Last Ten Fiscal Years 89 Principal Employers-Current Year and Ten Years Ago 90 Full-Time and Part-Time City Employees by Function-Last Seven Fiscal Years 91 Operating Indicators by Function-Last Ten Fiscal Years 92 Capital Asset Statistics by Function-Last Eight Fiscal Years 93 INTRODUCTORY SECTION This page intentionally left blank pPpu cq�"F P 11.11 City fS41oopar4 799 Moorpark Avenue, Moorpark, California 93021 (805)517-6200 fax (805)532-2520 December 17, 2007 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, 2007. 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. Furthermore, in May 2004, the GASB issued Statement No. 44, Economic Condition Reporting. This statement requires the statistical section to be presented with 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 PATRICK HUNTER JANICE S. PARVIN ROSEANN MIKOS KEITH F. MILLHOUSE MARK VAN DAM Mayor Mayor Pro Tern Councilmember Councilmember Councilmember statement was effective starting with fiscal year 2005/06 and has resulted in changes to the statistical section. The City continues to present the statistical section with detail information to be in compliance with GASB No. 44 requirements for fiscal year 2006/07. 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. THE REPORTING ENTITY AND ITS SERVICES The financial reporting entity includes all the funds 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 MRA), 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 MRA 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 MRA in order to provide financial assistance to the City and the MRA 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 63 and part-time staff of approximately 49 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 ii 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 12.44 square miles with a population of about 36,150 (source: California Department of Finance). Moorpark is recognized for having the 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 iii 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, 2007. 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. AWARD The California Society of Municipal Finance Officers (CSMFO) presented the City of Moorpark with a Certificate of Award for Outstanding Financial Reporting for the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2006. The Certificate of Award is a prestigious state recognition for conformance with high standards for preparation of local government financial reports. The reports must meet requirements outlined in the CSMFO Awards Checklist, satisfying generally accepted accounting principles and applicable legal requirements. The Certificate of Award is valid for a period of one year only. The City will continue to participate in the program by submitting the current CAFR to CSMFO to determine its eligibility for another award. 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 111 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 appropriation limit for the upcoming fiscal year. The appropriation limit and the City's appropriations subject to the limit for the fiscal year 2006/07 amounted to $19,700,584 and $9,225,745, 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 by utilizing several investment instruments. At fiscal year end June 30, 2007, approximately $64.4 million (City & MRA combined) was invested with the State Treasurer's Local iv Agency Investment Fund (LAIF); approximately $12.5 million in the Ventura County Pool; approximately $20.9 million in U.S. Treasury and Agency Securities; and $1.5 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 infrastructures reporting, whereby depreciation expense and accumulated depreciation has been recorded. Capital assets for the fiscal year ended June 30, 2007 has a net ending balance of $125.9 million. LONG-TERM LIABILITIES/BONDED LIABILITIES The City of Moorpark has no outstanding bond or other debt but does have long- term liabilities in an amount of $616,440 at June 30, 2007 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 $6.9 million and $11.6 million, respectively. In addition, the MRA issued the 2006 Tax Allocation Bonds which ended the year with a balance of $11,695,000. 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 over 100 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, v 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, Team, Ramirez & Smith, Inc., Certified Public Accountants 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, //c/J2y()-r- Steven Kueny Johnny Ea City Manager Finance Director vi City of Moorpark Q Q�•K:�%,, II Aga ir:/70111.37 _iffra 44 1 ofn b �a v 4,, ar] Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2007 DIRECTORY OF CITY OFFICIALS CITY COUNCIL Patrick Hunter, Mayor Keith F. Millhouse, Mayor Pro Tern Roseann Mikos, Councilmember Janice S. Parvin, Councilmember Mark Van Darn, Councilmember CITY MANAGEMENT STAFF Steven Kueny, City Manager Hugh Riley, Assistant City Manager Barry Hogan, Deputy City Manager David Bobardt, Planning Director Johnny Ea, Finance Director Yugal Lall, City Engineer/ Public Works Director Mary Lindley, Parks, Recreation & Community Services Director Deborah Traffenstedt, Administrative Services Director vii CITY OF MOORPARK ORGANIZATION CHART Arts Commission r r Honorable City Council City Attorney (Contract) , , Parks and Recreation _ Commission r City Manager Planning Commission — \. Assistant City Manager , .Emergency Services .Grants c , .Intergovernmental Community and Police Services Legislative Relations " • .Public Facility Capital Projects Manager (Contract) .Public Information/Cable TV .Redevelopment J Economic Development Property Management Housing CommunityAdministration Parks, Recreation and, Public Works , / Finance Development Services/ City Clerk Community Services Department Department Department Department Department \ J \ J \ J \ J .Building and Safety .City Clerk .Active Adult Center .Assessment District Street .Cash Management .Business Registration .Human Resources .Animal Regulation/Vector Lighting .Central Services .CDBG .Information Systems Control .Capital Projects .Finance and Accounting .Code Compliance .Risk Management .Art in Public Places .Crossing Guards .Fixed Assets Management .Film Permits .Library .NPDES .Purchasing .Planning .Parks/Landscape/Facilities/Main .Parking Enforcement .Vendor Permits tenance .Street Maintenance .Recreation .Transit .Solid Waste ....---?) \S-tkiek.......-. Californiaaof Municipal inane Officers Certificate of Award Outstanding Financial Reporting 2005-06 Presented to the City of Moo r ark ,,,• This certificate is issued in recognition of meeting professional standards and criteria in reporting which reflect a high level of quality in the annual financial statements and in the underlying accounting system from which the reports were prepared. March 6, 2007 ' I �. C 4 i,�j .lesKi akahashi '„ 'eV= Professional and Technicat Standards Committee r X77 fir 1 'v\f\ 'J Dedicated to Excellence in Municipal Financial Management This page intentionally left blank FINANCIAL SECTION This page intentionally left blank STEAMAN. RAMIRF7&SMITH, INC. CERTIFIED FROLIC ACCOUNTANTS Independent Auditors'Report The Honorable City Council The City of Moorpark,California We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Moorpark, California(the City), as of June 30, 2007,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 basic 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 fznancial 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 opinions. 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, 2007, and the respective changes in financial position, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2007 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. The management's discussion and analysis on pages 2 through 13, and the budgetary comparison information on pages 51 through 56 are not a required part of the basic financial statements, but are 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, supplementary information section, and statistical section, as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information section has been subjected to the auditing procedures applied in the audit of the basic financial statements and,in our opinion,is 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. December 27,2007 Richard A. Teaman, CPA • Greg W. Fankhanel, CPA • David M. Ramirez, CPA a Javier H. Carrillo, CPA 4201 Brockton Ave. Suite 100, Riverside CA 92501 • 951.274.9500 • 951.274.7828 FAX • www.trscpas.com This page intentionally left blank CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2007 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, 2007. 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 2006/07 fiscal year by $233,008,403 (net assets). Of this amount, $6,458,224 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 $39,866,285 during the current fiscal year. The Statement of Net Assets is presented on page 20. • As of June 30, 2007,the City's governmental funds(General Fund, Special Revenue Funds,Debt Service Funds, and Capital Projects Funds)reported combined ending fund balances of$133,340,949, an increase of$43,402,378, from the prior year. In addition, there was a prior year adjustment of$6,969,020,mainly due to reclassification of properties purchased by the City's Redevelopment Agency and recorded as capital assets in prior years,which is now recorded as property held for resale (see note # 15). • At the end of the current fiscal year,unreserved fund balance for the General Fund was$24,405,620. • The City's total Long — Term Liabilities increased by $11,021,245 or 56.8% during the current fiscal year. The increase is attributable to the difference between employee compensated absences addition; the fiscal year's regularly scheduled debt service payments for the 1999 and 2001 Tax Allocation Bonds; and issuance of the 2006 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. 2 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2007 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. 3 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2007 The City maintains 20 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/Public Facilities, Community Development, Areas of Contribution,Endowment, Police Facilities Fee,Moorpark Highlands Improvement, 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. Fiduciary funds are 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 30-58 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$233,008,403 at the close of the current fiscal year. The City's,net assets invested in capital assets,net of related debt reflects a positive $125,900,770. As shown on Table 1, the largest portion of the City's net assets (54%) 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. 4 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2007 An additional portion of the City's net assets(43%)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 (3%) 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 30,2007,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 30,2007 and 2006 2007 2006 Assets: Current and other assets $ 143,073,175 $ 90,444,349 Capital assets 125,900,770 125,196,438 Total Assets 268,973,945 215,640,787 Liabilities: Long-term debt outstanding 30,431,462 19,410,217 Other liabilities 5,534,080 3,088,452 Total Liabilities 35,965,542 22,498,669 Net Assets: Invested in capital assets, net of related debt 125,900,770 108,190,324 Restricted 100,649,409 57,986,366 Unrestricted 6,458,224 26,965,428 Total Net Assets $ 233,008,403 $ 193,142,118 The City's net assets increased by$39,866,285 during the current fiscal year. 5 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2007 Table 2 Changes in Net Assets Governmental Activities As of June 30,2007 and 2006 2007 2006 Revenues Program Revenues: Charges for services $ 8,007,847 $ 7,241,878 Operating contributions and grants 4,489,945 3,237,143 Capital contributions and grants 38,337,638 18,027,831 General Revenues: Property taxes 3,334,491 2,929,842 Tax increment 6,347,692 5,530,198 Franchise taxes 1,126,951 1,080,893 Sales taxes 2,192,327 2,260,786 Sales tax in lieu 704,562 608,298 Motor vehicle in lieu tax 2,860,207 2,734,470 Investment income 6,556,186 3,261,384 Other 58,841 135,276 Gain on Sale of Property 276,797 - Total Revenues 74,293,484 47,047,999 Expenses General government 1,639,628 3,044,381 Public safety 6,317,283 6,230,057 Public services 21,231,766 13,106,843 Parks and recreation 4,293,823 2,771,270 Interest on long-term debt 1,332,541 1,333,370 Total Expenses 34,815,041 26,485,921 Increase in net assets 39,478,443 20,562,078 Net assets -July 1, 193,142,118 172,580,040 Prior Period Adjustment(see note 15) 387,842 - Total Net assets-June 30 $ 233,008,403 $ 193,142,118 6 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2007 Program Revenues Charges for services 16% iiiri—illIl Operating contributions and grants 9% Capital contributions and grants 75% • Charges for services • Operating contributions and grants O Capital contributions and grants General Revenues Gain on Sale of Prop erty Other 1% Property taxes <0% 14% Investment income 29% T ax increment 27% Motor vehicle in lieu tax Sales tax in lieu Franchise taxes 12% Sales taxes 3% 9% 5% ® Property taxes • T ax increment E l Franchise taxes El Sales taxes • Sales tax in lieu • Motor vehicle in lieu tax • Investment income E l Other • Gain on Sale of Property 7 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2007 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 $133,340,949. This is an increase of $50,371,398 in comparison with the prior year. This increase is mainly attributable to $34.1 million in contributions from property owners for the Moorpark Highlands Improvement — Capital Projects Fund (CFD 2004-1) and $11.7 million from bond proceeds for the 2006 Tax Allocation Bonds, net of related expenditures. In addition, a prior year adjustment of$6.9 million contributed to the increase in the total fund balance (see note 15). Approximately $91,476,833 or 68.6% 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 $24,405,620 which was $3,161,209 or 13% 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 231 % of total General Fund expenditures and transfers out. Key factors in this growth when compared to FY 2005-06 are as follows: • The City's share of property taxes increased by approximately $405,000 as a result of the rise in home values. • Sales tax revenues also improved with an increase of approximately $207,000,which is a reflection of the full occupancy of the Moorpark Marketplace,higher fuel prices and increased sales from various business groups. • Interest earnings increased by approximately $565 in response to rising rates in the market. • Motor vehicle in lieu increased by approximately $126,000. • State mandated reimbursements ended the year approximately $142,000 higher than last year as a result of catch up payments for claims made prior to FY 05/06. • Expenditures and transfers out ended the year approximately $2.2 million under budget as a result of prudent spending by staff and capital projects that have not yet started been completed. Street and Traffic Safety Fund (Includes the Traffic System Management Fund, City-Wide Traffic Mitigation Fund and Crossing Guard Fund) The fund balance of the Street and Traffic Safety Fund increased by $2,364,396 from the prior year,primarily due to the receipt of development fees for various construction projects. 8 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2007 Community Development Fund The fund balance of the Community Development Fund decreased by ($381,019) from the prior year as a result of decreased residential development activities. Areas of Contribution Fund The fund balance of the Areas of Contribution Fund increased by $267,191 from the prior year, primarily due to development fees received for the Los Angeles AOC and fees for the Tierra Rejada/Spring Road AOC. Endowment Fund The fund balance of the Endowment Fund decreased by $5,762,925 from the prior year, primarily due to the completion of the construction of the Corporation Yard to serve Public Works and Parks Maintenance field operations. In addition, the City Council authorized a transfer of$5,434,834 to the Police Facilities Fee Fund to help offset a portion of prior year's costs for construction of the Moorpark Police Services Center. Park/Public Facilities Fund(Includes ten (10)various development fee related funds) The fund balance of the Park/Public Facilities Improvement Fund increased by $454,005 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 increased by $5,510,675 from the prior year, primarily due to a transfer of$5,434,834 from the Endowment Fund as noted above. The Police Department moved into the new facility in November of 2005. The major funding source for this new facility is a loan from the Endowment Fund, which currently has an outstanding balance of$2,205,608. Repayments will be made when the Police Facilities Fund collect fees from future development projects. Moorpark Highlands Improvement Fund The Moorpark Highlands Improvement Fund is one of six accounts held by the Fiscal Agent for the Community Facilities District (CFD)No. 2004-1 (Moorpark Highlands) Special Tax Bonds 2006. The Improvement account has been recorded under a capital projects fund to reflect the proceeds that have been designated for capital improvement projects. Sources of the fund has been identified as "Contributions from Property Owners"with an initial amount of$34,066,993 from the bond issue. The debt service portion of this bond issue has been recorded as an agency fund. Note that the City of Moorpark is not obligated in any manner for this bond issue and is only limited to acting as an agent for the assessed property owners and bondholders. 9 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2007 RDA Capital Projects Fund The fund balance of the Redevelopment Agency Capital Projects Fund increased by $17,017,487 from the previous year mainly due to the issuance of the 2006 Tax Allocation Bonds and the prior adjustments of property held from resale/development. RDA Debt Service Fund The fund balance of the Redevelopment Agency Debt Service Fund increased by $2,204,818 primarily resulting from capitalized interest (bond proceeds) for the 1999 and 2001 Tax Allocation Bonds and higher property tax revenues received. Non-Major Governmental Funds The fund balance of all other Non-Major Governmental Funds (10 funds) increased by 87,491 or .01 % from the previous fiscal year. General Fund Budgetary Highlights The City adopts annual appropriated operating budgets for its governmental funds (General Fund, Special Revenue Funds,Debt Service Funds, and Capital Project Funds (except for the Moorpark Highlands Improvement Fund as these sources have been designated for specific projects in accordance with the Bonds' Official Statement) 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, 2007, were more favorable than anticipated. Revenues were $1.3 million over budget and expenditures and transfers out ended the year $2.2 million under budget. The three largest savings came from General Government ($506,783), Public Service ($377,534) and Parks and Recreation($333,218). CAPITAL ASSET AND LONG-TERM LIABILITIES Capital Assets. The City's investment in capital assets as of June 30, 2007, amounted to $125,900,770 (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 .01%. Buildings and improvement shows a significant increase in 2007 due to the completion of the Moorpark Public Services Facility and the addition of the Moorpark Public Library. 10 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2007 Table 3 Capital Assets(net of depreciation) Governmental Activities As of June 30,2007 and 2006 2007 2006 Land $ 26,417,883 $ 31,662,804 Construction in Progress 10,905,684 12,125,310 Buildings and improvements 23,819,617 16,220,793 Machinery and equipment 2,250,561 1,780,306 Infrastructure 62,507,025 63,407,225 Total $ 125,900,770 $ 125,196,438 Some of the City's major general fixed asset purchases in the current fiscal year were: • The Internal Service Fund purchased$76,345 in computer and software related items. • The General Fund spent$14,190 (net of trade in for an existing bike) for a new motorcycle for the Police Department, $21,069 for an inscriber generator&mixer and$10,761 for a theater system at Arroyo Vista Recreation Center. • The Library Facilities Fund purchased computer and technology related items for $69,162 and spent another$58,174 on library furniture. • The Endowment Fund spent $25,814 in digital telecommunications connectivity system and $97,154 for furniture for the Moorpark Public Services Facility. • The operating fund of the Redevelopment Agency spent approximately 95,000 on sound and video equipment. • The Equipment Replacement Fund purchased a heavy duty truck for$47,334. As a result of the implementation of GASB No. 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 40 of this report. 11 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2007 Long-term Liabilities. At the end of the current fiscal year, the City's long-term liability outstanding is $616,440 in employee compensated absences payable. The Redevelopment Agency's bonded liability is comprised of$29,815,022 of tax allocation bonds which are secured by future tax revenues. This is shown in Table 4. Table 4 Outstanding Long-Term Liabilities Governmental Activities As of June 30,2007 and 2006 2007 2006 Tax allocation bonds(issued by the Redevelopment Agency) $ 29,815,022 $ 18,880,000 Employee Compensated Absences Payable 616,440 530,217 Total $ 30,431,462 $ 19,410,217 The City of Moorpark's total liabilities increased by $11,021,245 or 56.8% during the current fiscal year. The increase is attributable to the difference between long-term liabilities additions and the fiscal year's regularly scheduled liabilities service payments. Additional information on the City's long-term liabilities can be found in Note #6 on pages 40 thru 43 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 $15.0 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 State's budget for Fiscal Year 2007/08 does not include funding for Proposition 42. However, the City is projected to receive approximately $368,000 in FY 2008/09 from Proposition 42. General purpose revenues such as property tax and sales tax are anticipated to increase by 2.0% and 4.5% respectively in fiscal year 2007/08. The sales tax increase is a reflection of the full occupancy of the Moorpark Marketplace and the continued tenant mix in fiscal year 2007/08. In addition, new tenants are expected to fill spaces in the Campus Plaza, Village at Moorpark, Warehouse Discount Center, Moorpark Grove and Mountain Meadows Plaza shopping centers,increasing the City's sales tax revenue. 12 CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2007 Additionally,the City took into consideration the following factors in preparing the budget for fiscal year 2007/08: • Interest income will show an increase in response to rising interest rates. • Sales tax growth should continue to increase with the full occupancy of the Moorpark Marketplace and generally having the same tenant mix in FY 2007/08 and occupancy of the other centers referenced above for portions of the year. • Slight increase in PERS retirement cost from 11.728%to 11.840% effective July 1,2007. • Projections indicate our cost for general liability insurance will increase by 17% and worker's compensation is expected to increase by 28% for FY 07/08 when compared to fiscal year 2006/07 actual payments. A priority of the City is to maintain a high quality of services while adopting a balanced budget. As in prior years, the 2007/08 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 City of Moorpark Statement of Net Assets June 30, 2007 Governmental Activities ASSETS Cash and Investments $ 97,360,641 Receivables: Taxes 125,298 Accounts 1,631,024 Interest 1,302,058 Notes and Loans 3,391,642 Property Held for Resale/Development 10,123,102 Restricted Cash and Investments 28,642,249 Debt Issuance Costs 497,161 Capital Assets: Non-Depreciable: Land 26,417,883 Construction in Progress 10,905,684 Depreciable,Net of Accumulated Depreciation: Buildings and Improvements 23,819,617 Machinery and Equipment 2,250,561 Infrastructure 62,507,025 Total Assets 268,973,945 LIABILITIES Accounts Payable and Accrued Liabilities 4,793,623 Interest Payable 237,731 Deferred Revenue 502,726 Noncurrent Liabilities: Due Within One Year 444,154 Due in More Than One Year 29,987,308 Total Liabilities 35,965,542 NET ASSETS Invested in Capital Assets,Net of Related Debt 125,900,770 Restricted for: Public Services 91,080,256 Recreation Services 5,826,936 Public Safety 643,452 Housing Set-Aside 3,098,765 Unrestricted 6,458,224 Total Net Assets $ 233,008,403 The accompanying notes are an integral part of this statement. 14 City of Moorpark Statement of Activities Year Ended June 30,2007 Program Revenues Charges Operating Capital Net for Grants and Grants and Governmental Functions/Programs Expenses Services Contributions Contributions Activities Primary Government: Governmental Activities: General Government $ 1,639,628 $ 191,674 $ 276,299 $ $ (1,171,655) Public Safety 6,317,283 598,500 100,000 (5,618,783) Public Services 21,231,766 6,612,769 2,383,904 38,337,638 26,102,545 Parks and Recreation 4,293,823 604,904 1,729,742 (1,959,177) Interest on Long-Term Debt 1,332,541 (1,332,541) Total Governmental Activities $ 34,815,041 $ 8,007,847 $ 4,489,945 $ 38,337,638 16,020,389 General Revenues: Taxes: Property Tax,Levied for General Purpose 3,334,491 Property Tax,Redevelopment Agency Tax Increment 6,347,692 Franchise Taxes 1,126,951 Sales Tax 2,192,327 Sales Tax In-Lieu 704,562 Motor Vehicle In-Lieu Tax 2,860,207 Investment Income 6,556,186 Gain on Sale of Land 276,797 Other 58,841 Total General Revenues 23,458,054 Change in Net Assets 39,478,443 Net Assets-Beginning of Year 193,142,118 Prior Period Adjustments 387,842 Net Assets-End of Year $ 233,008,403 The accompanying notes are an integral part of this statement. 15 City of Moorpark Balance Sheet Governmental Funds June 30, 2007 Special Revenue Street and Community Areas of General Traffic Safety Development Contribution Endowment ASSETS Cash and Investments $ 22,828,985 $ 17,140,838 $ 1,008,776 $ 11,583,585 $ 4,614,261 Restricted Cash and Investments Receivables: Taxes 119,087 Accounts 919,167 563 Interest 924,495 Notes and Loans 1,243 250,249 960,000 Due From Other Funds 382,882 2,205,608 Property Held for Resale/Development Total Assets $ 25,175,859 $ 17,140,838 $ 1,009,339 $ 11,833,834 $ 7,779,869 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable and Accrued Liabilities $ 642,407 $ 86,655 $ 597,085 $ 202,881 $ 7,315 Due to Other Funds Deferred Revenue 127,832 250,249 960,000 Total Liabilities 770,239 86,655 597,085 453,130 967,315 Fund Balances: Reserved for: Capital Projects Debt Service Property Held for Resale/Development Housing Set-Aside Unreserved,Reported In: General Fund 24,405,620 Special Revenue Funds 17,054,183 412,254 11,380,704 6,812,554 Capital Projects Funds Debt Service Funds Total Fund Balances 24,405,620 17,054,183 412,254 11,380,704 6,812,554 Total Liabilities and Fund Balances $ 25,175,859 $ 17,140,838 $ 1,009,339 $ 11,833,834 $ 7,779,869 The accompanying notes are an integral part of this statement. 16 Special Revenue Capital Projects Debt Service Non-Major Total Moorpark Parks/Public Police Highlands Redevelopment Redevelopment Governmental Governmental Facilities Facilities Fee Improvement Agency Agency Funds Funds $ 5,912,298 $ $ $18,805,272 $ 2,602,453 $ 12,864,173 $ 97,360,641 25,448,070 3,194,179 28,642,249 6,211 125,298 1,283 33,480 676,531 1,631,024 377,563 1,302,058 1,704,786 475,364 3,391,642 2,588,490 7,891,391 2,231,711 10,123,102 $ 5,912,298 $ - $25,448,070 $28,780,295 $ 5,830,112 $ 16,253,990 $ 145,164,504 $ 85,362 $ 168 $ $ 98,861 $ 2,543,574 $ 529,315 $ 4,793,623 2,205,608 72,111 310,771 2,588,490 1,704,786 9,116 1,389,459 4,441,442 85,362 2,205,776 - 1,875,758 2,552,690 2,229,545 11,823,555 25,448,070 25,448,070 3,194,179 3,194,179 7,891,391 2,231,711 10,123,102 3,098,765 3,098,765 24,405,620 5,826,936 7,842,293 49,328,924 (2,205,776) 19,013,146 851,676 17,659,046 83,243 83,243 5,826,936 (2,205,776) 25,448,070 26,904,537 3,277,422 14,024,445 133,340,949 $ 5,912,298 $ - $25,448,070 $28,780,295 $ 5,830,112 $ 16,253,990 $ 145,164,504 The accompanying notes are an integral part of this statement. 17 City of Moorpark Reconciliation of the Governmental Funds - Balance Sheet to the Statement of Net Assets June 30, 2007 Fund balances of governmental funds $ 133,340,949 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 governmenal funds. 125,900,770 Long-term notes and loans receivable are not current financial resources and, therefore, are deferred in the governmental funds. 3,390,399 Revenues not received soon enough after year-end to be considered available are deferred in the funds. The availability criteria does not apply to the government- wide financial statements. 548,317 Interest expenditures are recognized when due, and therefore,interest payable is not recorded in the governmental funds. (237,731) Long-term liabilities are not due and payable in the current period and are not reported in the funds. Compensated Absences (616,440) Tax Allocation Bonds (30,135,000) Unamortized Discount 319,978 Issuance costs net of accumulated amortization were recorded as expenditures in the governmental funds. 497,161 Net assets of governmental activities $ 233,008,403 The accompanying notes are an integral part of this statement. 18 This page intentionally left blank City of Moorpark Statement of Revenues,Expenditures, and Changes in Fund Balances Governmental Funds Year Ended June 30,2007 Special Revenue Street and Community Areas of General Traffic Safety Development Contribution Endowment REVENUES Taxes $ 7,358,332 $ $ $ $ Licenses and Permits 65,630 Fines and Forfeitures 193,949 Use of Money and Property 1,729,467 807,394 587,139 138,748 Charges for Services 613,796 Intergovernmental 3,141,363 Maintenance Assessments Franchise Fees Building and Safety Fees 716,552 Planning and Public Works Fees 1,649,002 Development Fees 1,849,025 568,843 2,258,950 Contributions from Property Owners Other Revenue 338,929 6,106 338,870 Total Revenues 13,441,466 2,656,419 2,371,660 1,494,852 2,397,698 EXPENDITURES Current: General Government 1,465,126 6,228 Public Safety 5,584,268 Public Services 412,512 25,650 2,709,564 Parks and Recreation 1,277,148 Capital Outlay 662,052 266,373 36,887 1,227,661 2,725,789 Debt Service: Principal Interest Bond Issuance Costs Total Expenditures 9,401,106 292,023 2,752,679 1,227,661 2,725,789 Excess(Deficiency)of Revenues over Expenditures 4,040,360 2,364,396 (381,019) 267,191 (328,091) OTHER FINANCING SOURCES(USES) Gain on Sale of Property 1,000 Bond Proceeds Discount on Bonds Transfer In Transfer Out (1,142,090) (5,434,834) Total Other Financing Sources(Uses) (1,141,090) - - - (5,434,834) Net Change in Fund Balances 2,899,270 2,364,396 (381,019) 267,191 (5,762,925) Fund Balances-Beginning of Year 21,244,411 14,689,787 793,273 11,113,513 12,575,479 Prior Period Adjustments 261,939 Fund Balances,End of Year $ 24,405,620 $ 17,054,183 $ 412,254 $ 11,380,704 $ 6,812,554 The accompanying notes are an integral part of this statement. 19 Special Revenue Capital Projects Debt Service Moorpark Non-Major Total Parks/Public Police Highlands Redevelopment Redevelopment Governmental Governmental Facilities Facilities Fee Improvement Agency Agency Funds Funds $ $ $ $ $ 6,347,692 $ $ 13,706,024 65,630 149,630 343,579 312,026 1 1,312,503 1,123,833 316,015 757,978 7,085,104 613,796 3,022,622 6,163,985 192,729 1,729,742 1,922,471 292,003 292,003 716,552 1,649,002 1,032,193 694,840 6,403,851 34,066,993 34,066,993 309 1,032,562 38,568 1,755,344 1,344,528 192,730 35,379,496 2,156,395 6,663,707 6,685,383 74,784,334 1,471,354 499,649 6,083,917 141,901 925,806 2,869,751 2,523,570 9,608,754 2,762,740 4,039,888 748,622 116,889 9,931,426 571,192 3,190,975 19,477,866 440,000 440,000 1,380,633 20,352 1,400,985 505,588 505,588 890,523 116,889 9,931,426 1,496,998 5,195,972 8,997,286 43,028,352 454,005 75,841 25,448,070 659,397 1,467,735 (2,311,903) 31,755,982 275,797 276,797 8,923,500 2,771,500 11,695,000 (325,401) (325,401) 5,434,834 591,812 152,334 3,278,280 9,457,260 (1,861,350) (1,018,986) (9,457,260) 5,434,834 - 9,791,109 737,083 2,259,294 11,646,396 454,005 5,510,675 25,448,070 10,450,506 2,204,818 (52,609) 43,402,378 5,372,931 (7,716,451) - 9,887,050 1,072,604 13,936,954 82,969,551 6,566,981 140,100 6,969,020 $ 5,826,936 $ (2,205,776) $ 25,448,070 $ 26,904,537 $ 3,277,422 $ 14,024,445 $ 133,340,949 The accompanying notes are an integral part of this statement. 20 City of Moorpark Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30,2007 Net change in fund balances-total governmental funds $ 43,402,378 Amounts reported for governmental activities in the statement of activities are different because. Governmental funds report capital outlays as expenditures. However,in the statement of activities,the cost of those assets is allocated over ther estimated useful lives a; 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 10,066,299 Depreciation expense (2,733,594) Governmental funds report only proceeds from the sale of capital assets. The statement of activities reports a gain or loss on disposal based on the net book value at the time of disposal. Disposal activity included the following: Costs of assets disposed (62,599) Accumulated depreciation on disposed assets 15,404 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. (1,137,031) Revenues not received soon enough after year-end to be considered available are deferred in the funds. The availability criteria does not apply to the government-wide financial statements. 369,376 The issuance of long-term debt provides current financial resources to governmental funds,while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction,however,has any effect on net assets. Also governmental funds report the effect of issuance costs. premiums,discounts, and similar items when debt is first issued,whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. (10,437,861) 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. 82,294 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. (86,223) Change in net assets of governmental activities $ 39,478,443 The accompanying notes are an integral part of this statement. 21 City of Moorpark Statement of Fiduciary Assets and Liabilities Agency Funds June 30,2007 ASSETS Cash and Investments $ 2,563,697 Restricted for Cash and Investments 6,199,811 Accounts Receivable 70,711 Total Assets 8,834,219 LIABILITIES Accounts Payable 68,834 Deposits 2,500,864 Due to Bondholders 6,264,521 Total Liabilities $ 8,834,219 The accompanying notes are an integral part of this statement. 22 This page intentionally left blank City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 NOTE DESCRIPTION PAGE 1 Summary of Significant Accounting Policies 24-31 2 Cash and Investments 32-36 3 Notes and Loans Receivable 37-38 4 Interfund Transactions 38-39 5 Capital Assets and Depreciation 39-40 6 Long-Term Liabilities 40-43 7 Agreements with Various Taxing Agencies 43 -44 8 Retirement Plan 45 9 Conduit Debt-Revenue Bonds 45-46 10 Special Assessment Bonds 46 11 Risk Management 47-48 12 Classification of Net Assets and Fund Balance 48 -49 13 Expenditures in Excess of Appropriations 49 14 Commitments and Contingencies 50 15 Prior Period Adjustments 50 23 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the City of Moorpark(the City) conform to accounting principles generally accepted in the United States of America as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for governmental accounting and financial reporting principles. The following is a summary of the significant policies. A) Reporting Entity The reporting entity "City of Moorpark"includes the accounts of the City,the Moorpark Redevelopment Agency(the RDA), 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 IDA as"blended"component units. Despite being legally separate, they are so intertwined with the City,they are in substance,part of the City's operations. Accordingly,the balances and transactions of the RDA are reported as separated 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 unit: 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. 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. 24 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 1) SUM1VIARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued 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 over 100 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 coverage. The Authority's pool began covering claims of its members in 1978. Each member government has elected an 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 the accounting principles generally accepted in the United States of America applicable to state and local governments. In accordance with GASB Statements No. 20, the City applies all applicable Financial Accounting Standards Board (FASB)pronouncements issued on or before November 30, 1989,unless any such pronouncements contradict GASB pronouncements. D) Description of Funds The accounts of the City are organized on the basis of funds,each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities,fund equity,revenues,and expenditures. The following are types of funds used: Governmental Fund Types General Fund-Used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Used to account for the proceeds of specific revenue sources that are restricted by law or administrative action for specified purposes. Debt Service Funds -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. 25 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued 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 particular operating function and may include state shared revenues and grants. Capital contributions and grants include revenues restricted to meeting the requirements of a particular capital function and may include grants and developer fees. Taxes and other items not properly included among program revenues are reported instead as general revenues. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables,and receivables. All internal balances in the government-wide financial statements have been eliminated. Governmental Fund Financial Statements Governmental fund 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 Statements 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 presents 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 included 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. 26 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued E) Basis of Accounting and Measurement Focus-Continued 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. 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 Parks/Public Facilities Special Revenue Fund is used to account for fees used for park and public facilities improvements as a result of additional development. The Police Facilities Fee Capital Projects Fund is used to account for the funds used to build the new police facility. The Moorpark Highlands Improvement Capital Projects Fund is used to account for the receipt and expenditure of the CFD No.2004-1 special tax bonds proceeds. The RDA Capital Projects Fund is used to account for the funds used for the RDA's capital improvement projects. The RDA Debt Service Fund is used to account for the accumulation of resources for,and the payment of principal and interest on the RDA's debt and other long-term obligations. Fiduciary Fund Financial Statements Fiduciary Fund Financial Statements include a Statement of Net Assets. The fiduciary fund is used to report assets held in a trustee or agency capacity for others and therefore are not available to support City programs. Since these assets are being held for the benefit of a third party,these funds are not incorporated into the government-wide statements. The City's only fiduciary fund is an agency fund,which uses the accrual basis of accounting to account for amounts held for individuals, private organizations, other governments, and/or other funds. The agency fund is custodial in nature(assets equal liabilities)and therefore does not involve measurement of results of operations. 27 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued F) Budgetary Accounting Annual budgets are adopted on a basis consistent with GAAP for all governmental funds. All annual appropriations lapse at fiscal year-end. Throughout the year,the City Council made several supplementing budgetary adjustments to the General Fund, Special Revenue Funds, Capital Projects Funds, and the Debt Service Fund. These adjustments resulted in a net appropriation increase of$5,488,135. This increase resulted primarily from rebudgeted projects and amounts carried over from Fiscal Year 2005-2006 as continuing 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 requires 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. 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 reservation of fund balance to indicate that assets constitute future capital projects and are not available spendable resources. The balance at June 30,2007 was$10,123,102. I) Capital Assets Capital assets,which include land,machinery and equipment(vehicles, computers, etc),buildings and improvements, and infrastructure assets(street systems,storm drains,sewer systems,etc.),are reported in the 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. 28 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued I) Capital Assets-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: Building 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 for monies collected in advance that have not been earned. In the fund financial statements revenue is also deferred when the availability criteria has not been met. As of June 30, 2007, the total unearned revenue amounted to$502,726 and unavailable revenue amounted to$3,938,716. K) Long-Term Debt In the government-wide financial statements, long-term debt and other 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 760 hours or annual leave up to a maximum of 784 hours and admin leave up to a maximum of 120 hours, 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 per management benefits and City's MOA. There is no fixed payment schedule for employee compensated absences. M) Property Taxes The duties of assessing and collecting property taxes are performed by the Ventura County(the County)Assessor and Tax Collector, respectively. The City receives an allocation of property taxes collected by the County with respect to property located within the City limits equal to 7.40% 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. 29 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued M) Property Taxes-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, 2007, in the opinion of the City Attorney, the City had no material claims, which require loss provision 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). 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 results 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 results in the payment of additional deposits and such deposits, if any, are recorded as insurance expenditures when paid. 0) 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 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. 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. The City is required to implement the new standard as of June 30,2009. The City has not determined its effect on the financial statements. 30 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued 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 affect 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 recourses first,and then unrestricted resources as they are needed. S) Explanation of Certain Differences Between the Governmental Fund Statement of Revenues,Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities The reconciliation states that the issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction,however,has any affect on net assets. Also governmental funds report the affect of issuance costs, premiums,discounts,and similar items when debt is first issued,whereas these amounts are deferred and amortized in the statement of activities. The details of this$10,437,861 difference is as follows: Issuance of Tax Allocation Bonds $ (11,695,000) Costs of Issuance 505,588 Discount on Bonds 325,401 Amortization of Issuance Costs (8,427) Amortization of Bond Discounts (5,423) Principal Repayment 440,000 Net adjustment to decrease net changes in fund balances- total governmental funds to arrive at changes in net assets of governmental activities X10,437,861) 31 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 2) CASH AND INVESTMENTS Cash and investments at June 30,2007,consisted of the following: City Treasury Deposits Demand Deposits $ 657,372 Cash on Hand 2,750 Total City Treasury Deposits 660,122 City Treasury Investments Certificates of Deposit 1,499,000 LAIF 64,397,657 Ventura County Pool 12,455,599 U.S Treasury Obligations 8,980,320 U.S.Agency Securities 11,931,640 Total City Treasury Investments 99,264,216 Cash and Investments With Fiscal Agent Money Markets 28,829,530 Guaranteed Investment Contracts 6,012,530 Total Cash and Investments With Fiscal Agent 34,842,060 Total Cash and Investments $ 134,766,398 Cash and Investments are reported in the basic financial statements as follows: Statement of Statement of Fiduciary Net Assets Net Assets Governmental Activities Agency Fund Total Cash and Investments $ 97,360,641 $ 2,563,697 $ 99,924,338 Restricted Cash and Investment 28,642,249 6,199,811 34,842,060 Total $ 126,002,890 $ 8,763,508 $ 134,766,398 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. A) Authorized Investments Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment type 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. 32 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 2) CASH AND INVESTMENTS-Continued A) Authorized Investments-Continued This table does not address investments of debt proceeds held by bond trustees that are governed by provisions of debt agreements of the City, rather than the general provisions of the California Government or the City's investment policy. As of June 30, 2007, the only debt agreements of the City pertain to the Moorpark Redevelopment Agency. 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. 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 Maximum Maturity U.S.Treasury Obligations None U.S.Agency Securities None Banker's Acceptances 180 days Commercial Paper 270 days Money Market Mutual Funds N/A Investment Contracts 30 years 33 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 2) CASH AND INVESTMENTS-Continued B) Interest Rate Risk 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 investment to market interest rate fluctuation is provided by the following table that shows the distribution of the City's investments by maturity. Investment Maturities(in Years) Investment Type Less than 1 1 to 2 2 to 3 3 to 4 >5 Local Agency Investment Fund $ 64,397,657 $ 64,397,657 $ $ $ $ Ventura County Pool 12,455,599 12,455,599 Certificates of Deposit 1,499,000 1,199,000 300,000 U.S.Treasury Notes 8,980,320 8,980,320 Freddie Mae 2,942,160 2,942,160 FNM 6,995,660 6,995,660 FHLM 1,993,820 1,993,820 Held by Bond Trustee: Money Market Funds 28,829,530 28,829,530 Guaranteed Investment Contracts 6,012,530 6,012,530 Total $134,106,276 $127,793,746 $ 300,000 $ $ $6,012,530 C) Credit Risk and Concentration of Credit Risk Deposits At June 30,2007,the carrying amount of the City's deposits was$657,372. Bank balances before reconciling items were $1,536,917 at June 30, 2007, of which $1,536,917 were 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. 34 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 2) CASH AND INVESTMENTS-Continued C) Credit Risk and Concentration of Credit Risk-Continued 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 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 Percentage of Investment Type Carrying Value Credit Rating Investments Local Agency Investment Fund $ 64,397,657 Not Rated 48.02% Ventura County Pool 12,455,599 Not Rated 9.29% Certificates of Deposit 1,499,000 Not Rated 1.12% U.S.Treasury Notes 8,980,320 AAA 6.69% Freddie Mae 2,942,160 AAA 2.19% FNM 6,995,660 AAA 5.22% FHLM 1,993,820 AAA 1.49% Held by Bond Trustee: Money Market Funds 28,829,530 Not Rated 21.50% Guaranteed Investment Contracts 6,012,530 Not Rated 4.48% Total $ 134,106,276 100.00% 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. 35 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 2) CASH AND INVESTMENTS-Continued 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 investment in LAIF. At June 30, 2007, accounts were maintained in the name of the City for$40,000,000 and the Redevelopment Agency for$24,397,656. The total cost value of investment in LAIF was $64,397,656. The total fair value of investments in LAIF was $64,368,356. The unrealized loss was based on a fair market value adjustment factor of.9995455022 that was calculated by the State of California Treasurer's Office. At June 30, 2007, the market value of the State of California Pooled Money Investment Account (PMIA) including accrued interest was $66,051,251,287. The State of California Pooled Money Investment Account portfolio had securities in the form of structured notes and asset-backed securities. 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 review 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$12,455,599 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. 36 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 3) NOTES AND LOANS RECEIVABLE Notes and loans receivable activity for the year ended June 30,2007,is as follows: Beginning Ending Balance Increases Decreases Balance Notes Receivable: Asadurian $ 1,040,000 $ $ (80,000) $ 960,000 Mission Bell 2,737,323 (1,032,537) 1,704,786 Deferred Property Assessments 250,249 250,249 Total Notes Receivable 4,027,572 (1,112,537) 2,915,035 Loans Receivable: Employee Computer 5,060 (3,817) 1,243 Rehabilitation 47,550 31,384 First-time Homeowners Assistance 119,104 (16,166) 119,104 CalHome 333,204 (8,328) 324,876 Total Loans Receivable 504,918 (28,311) 476,607 Total Notes and Loans Receivable $ 4,532,490 $ $ (1,140,848) $ 3,391,642 A) Asadurian Note On April 7,2003,the City entered into an agreement with Asadurian Investment Corporation whereby in return for land disposition, the City received a $1,200,000 promissory note. The note bears simple interest at the rate equal to the average monthly interest rate announced by the Local Agency Investment Fund(LAIF). The borrower shall pay the City the amount of$80,000 plus interest over fifteen years. The balance outstanding at June 30,2007 was$960,000. B) 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 29,2029. In June 2004 the Agency,per settlement agreement discharged three of the remaining six of the original seven promissory notes totaling $500,000. In September of 2006,notes number 2 and 6 were paid off. The balance of the remaining note(note no. 7) outstanding at June 30,2007 was$1,704,786. Interest payments are due annually on September rd. C) Deferred Property Assessment Notes In March 1993, the City entered into agreements with three 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 30,2007,the principal balance outstanding was$250,249. 37 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 3) NOTES AND LOANS RECEIVABLE-Continued D) 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 30,2007,was$1,243. E) Rehab Loans The Redevelopment Agency of the City of Moorpark operates a rehabilitation loan program for the renovation of low- moderate income housing. The total balance outstanding at June 30,2007,was$31,384. F) Villa Campesina The City provides down payment assistance loans to buyers in Villa Campesina. The total balance outstanding at June 30,2007 was$119,104. G) CalHome Mobilehome Rehabilitation Loans The total balance of CalHome loans for repairs to mobilehomes in Villa del Arroyo at June 30, 2007 was $324,876. These loans are subject to a conditional forgiveness provision,beginning in Year 6 of the loan,continuing through Year 10 of the loan,with 20%of the balance forgiven each of these years; $71,727 has been received and$2,597 has been forgiven. Funds received are deposited into a City Trust Fund to be used for eligible home ownership-related activities. H) First Time Home Buyer Program In order to reinforce the resale restrictions on properties purchased through the City's First Time Home Buyer Program, buyers execute Promissory Notes and Deeds of Trust are recorded to secure these Notes. The Notes become payable only in the event of a default of any provision of this program. 4) INTERFUND TRANSACTIONS Due to/Due From Due to/due from other funds for the year ending June 30,2007,consisted of the following: Due to the General Fund From: Redevelopment Agency Capital Projects Fund $ 72,111 Non-Major Special Revenue Funds 310,771 Total Due to the General Fund S 382,882 Due to the Endowment Special Revenue Fund From: The Police Facilities Special Revenue Fund $ 2,205,608 38 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 4) INTERFUND TRANSACTIONS-Continued The General Fund has advanced to the Redevelopment Agency and the State and Federal Assistance Fund $382,882 to cover current expenditures. Repayment is expected during 2007-08. The Endowment Fund has advanced to the Police Facilities Fee Fund $2,205,608 to fund Capital Improvements. The advance is expected to be repaid with development fees to be collected in the future. Transfers Interfund transfers for the year ended June 30,2007 consisted of the following: TRANSFER FROM Endowment RDA General Special Debt Non-Major Fund Revenue Service Governmental Total RDA Debt Service $ $ $ $ 152,334 $ 152,334 RDA Capital Projects 591,812 591,812 TRANSFER Police Facilities TO Special Revenue 5,434,834 5,434,834 Non-Major Governmental Funds 1,142,090 1,269,538 866,652 3,278,280 Total $ 1,142,090 $5,434,834 $1,861,350 $ 1,018,986 $ 9,457,260 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. 5) CAPTIAL 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 have been recorded. 39 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 5) CAPTIAL ASSETS AND DEPRECIATION-Continued The following table presents the capital assets activity for the year ended June 30,2007. Beginning Ending Balance Adjustments* Increases Decreases Balance Governmental Activities: Capital Assets,Not Depreciated: Land $ 31,662,804 $ (5,674,581) $ 429,660 $ $ 26,417,883 Construction in Progress 12,125,310 8,634,008 (9,853,634) 10,905,684 Total Capital Assets Not Depreciated 43,788,114 (5,674,581) 9,063,668 (9,853,634) 37,323,567 Capital Assets Being Depreciated: Buildings and Improvements 19,221,519 (1,054,634) 9,189,194 27,356,079 Machinery and Equipment 3,326,318 29,646 692,206 (35,222) 4,012,948 Infrastructure Roadway System 86,839,230 974,865 (27,377) 87,786,718 Storm Drainage System 1,619,399 1,619,399 Parks System 156,727 156,727 Total Capital Assets Being Depreciated 111,163,193 (1,024,988) 10,856,265 (62,599) 120,931,871 Less Accumulated Depreciation: Buildings and Improvements (3,000,725) (3,547) (532,190) (3,536,462) Machinery and Equipment (1,546,013) 121,938 (353,716) 15,404 (1,762,387) Infrastructure Roadway System (25,029,700) (1,828,359) (26,858,059) Storm Drainage System (136,114) (16,194) (152,308) Parks System (42,317) (3,135) (45,452) Total Accumulated Depreciation (29,754,869) 118,391 (2,733,594) 15,404 (32,354,668) Total Capital Assets Being Depreciated,Net 81,408,324 (906,597) 8,122,671 (47,195) 88,577,203 Government Activities Capital Assets, Net of Depreciation $ 125,196,438 $ (6,581,178) $ 17,186,339 $ (9,900,829) $ 125,900,770 *The adjustments to capital assets are due to misclassification of land and buildings in prior years. These assets should have been appropriately classified as property held for resale. 6) LONG-TERM LIABILITIES Long-term liability activities for the year ended June 30,2007,are as follows: Beginning Ending Due Within Balance Additions Deletions Balance One Year 1999 Tax Allocation Bonds $ 7,295,000 $ $ (425,000) $ 6,870,000 $ 440,000 2001 Tax Allocation Bonds 11,585,000 (15,000) 11,570,000 15,000 2006 Tax Allocation Bonds 11,695,000 11,695,000 Discount on Bonds (325,401) 5,423 (319,978) (10,846) Employee Compensated Absences 530,217 86,223 616,440 Total $ 19,410,217 $ 11,455,822 $ (434,577) $ 30,431,462 $ 444,154 40 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 6) LONG-TERM LIABILITIES 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 indenture, 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 Ending Tax Allocation Bonds June 30, Principal Interest Total 2008 $ 440,000 $ 319,148 $ 759,148 2009 460,000 300,583 760,583 2010 475,000 279,459 754,459 2011 500,000 255,694 755,694 2012 525,000 230,709 755,709 2013-2017 3,035,000 733,566 3,768,566 2018-2019 1,435,000 70,809 1,505,809 Total $ 6,870,000 $ 2,189,968 $ 9,059,968 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 funds 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. 41 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 6) LONG-TERM LIABILITIES-Continued B) 2001 Tax Allocation Bonds-Continued The Redevelopment Agency is in compliance with the covenants contained in debt indentures, which require the establishment of certain specific accounts form the Tax Allocations Bonds. Year Ending Tax Allocation Bonds June 30, Principal Interest Total 2008 $ 15,000 $ 589,761 $ 604,761 2009 15,000 589,176 604,176 2010 20,000 588,469 608,469 2011 15,000 587,743 602,743 2012 15,000 587,098 602,098 2013-2017 95,000 2,923,107 3,018,107 2018-2022 2,055,000 2,755,215 4,810,215 2023-2027 4,090,000 1,890,101 5,980,101 2028-2032 5,250,000 699,051 5,949,051 Total $ 11,570,000 $ 11,209,721 $ 22,779,721 C) 2006 Tax Allocation Bonds In 2006,the Redevelopment Agency issued an$11,695,000 aggregated principal amount of Moorpark Redevelopment Project 2006 Tax Allocation Bonds (the Bonds). The purpose of the Bonds was to finance redevelopment activities related to the Agency's Moorpark Redevelopment Project(the"Project Area"). The 2006 Bonds bear interest at rates ranging from 3.625% to 4.375% per annum, payable semi-annually on April 1 and October 1 of each year, commencing on April 1,2007,and are subject to mandatory sinking fund redemption commencing on October 1,2016, 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 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. The Redevelopment Agency is in compliance with the covenants contained in the debt indenture, which require the establishment of certain specific accounts for the Tax Allocation Bonds. 42 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 6) LONG-TERM DEBT-Continued Debt service payments on the 2006 Tax Allocation Bonds payable will be made from the Debt Service Fund. Annual debt service requirements to maturity are as follows: Year Ending Tax Allocation Bonds June 30, Principal Interest Total 2008 $ - $ 508,163 $ 508,163 2009 - 508,163 508,163 2010 - 508,163 508,163 2011 40,000 507,437 547,437 2012 40,000 505,987 545,987 2013-2017 205,000 2,508,641 2,713,641 2018-2022 255,000 2,464,656 2,719,656 2023-2027 320,000 2,405,431 2,725,431 2028-3032 395,000 2,329,141 2,724,141 2033-2037 7,130,000 1,530,594 8,660,594 2038-2039 3,310,000 146,344 3,456,344 Total $ 11,695,000 $ 13,922,720 $ 25,617,720 D) Employee Compensated Absences The long-term liability at June 30,2007 is $616,440 for employee compensated absences. There is no current liability estimated. The General Fund is primarily expected to liquidate this liability. 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. 43 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 7) AGREEMENTS WITH VARIOUS TAXING AGENCIES-Continued 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, following a deduction from total increment revenues for amounts required to be used for housing purposes (currently 20%of total 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 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 expenditures that are submitted in writing by the School District. 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. 44 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 8) RETIREMENT PLAN A) Plan Description The City of Moorpark contributes to the California Public Employees Retirement System(Ca1PERS), a cost-sharing multiple-employer public employee defined benefit pension plan.Ca1PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Ca1PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of Ca1PERS' annual financial report may be obtained from their executive office:400 P Street,Sacramento,California 95814. B Funding Policy Active plan members are required to contribute 7.00% of their covered salary. The City of Moorpark makes the contribution required of the City employees on their behalf. The City is also required to make an additional contribution at an actuarially determined rate. The required employer contribution rate for the fiscal year 2006/07 was 11.728%. The contribution requirements for plan members are established by State statute and the employer contribution rate is established and may be amended by Ca1PERS. C) Annual Pension Cost THREE YEAR TREND INFORMATION FOR PERS Fiscal Annual Pension Percentage of Net Pension Year Cost(APC) APC Contributed Obligation 6/30/05 $ 279,434 100% $ 0 6/30/06 $ 426,533 100% $ 0 6/30/07 $ 455,376 100% $ 0 9) CONDUIT DEBT-REVENUE BONDS 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 30,2007,totaled$13,890,000. 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 30,2007,totaled$15,615,230. 45 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 9) CONDUIT DEBT-REVENUE BONDS-Continued 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 edged 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. 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 Improvements Bonds 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$1,630,000 at June 30,2007. 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 basic financial statements. The unpaid principal balance is$6,630,000 at June 30,2007. C) Community Facilities District No.2004-1 During the 2006-07 fiscal year, the City issued bonds to construct and acquire certain public facilities of benefit to the Community Facilities District No. 2004-1. The bonds,totaling$38,030,000,were issued pursuant to the Mello- Roos Community Facilities Act of 1982. The bonds mature on September 1, 2038 with interest payable at rates ranging from 4.0%to 5.3%per annum,on March 1 and September 1 of each year. 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 basic financial statements. The unpaid principal balance is$38,030,000 at June 30,2007. 46 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 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 over 100 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. Cost 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. 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. 47 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 11) RISK MANAGEMENT-Continued E) Adequacy of Protection During the past three fiscal(claims)years none of the above program 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. 12)CLASSIFICATION 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 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. The City's governmental funds reserves and designations at June 30, 2007,are presented below,followed by explanations of the nature and purpose of each reserve and designation. Redevelopment Redevelopment Highland Agency Agency Non-Major Improvement Capital Projects Debt Service Governmental Fund Fund Fund Funds Reserved: Capital Projects $ 25,448,070 $ $ $ Debt Service 3,194,179 Property Held for Resale/Development 7,891,391 2,231,711 Housing Set-Aside 3,098,765 Total Reserved $ 25,448,070 $ 7,891,391 $ 3,194,179 $ 5,330,476 Unreserved,Designated: Future Projects S $ 9,178,622 $ S 48 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 12)CLASSIFICATION OF NET ASSETS AND FUND BALANCE-Continued Reserved for Capital Projects These funds are reserved for project expenditures related to the issuance of the CFD No.2004-1 bonds. Reserved for Debt Service These funds are reserved for restricted debt proceeds. Reserved for Property Held for Resale/Development 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. Reserved for Housing Set-Aside These funds are for the development of low and moderate-income housing Unreserved,Designated for Future Projects These funds have been designated for future capital projects. Deficit Fund Balance The following fund had a deficit at June 30,2007 Police Facilities Fee Capital Projects Fund $ (2,205,776) The deficit will be made up through future police facilities assessment fees. 13) EXPENDITURES IN EXCESS OF APPROPRIATIONS The following fund has expenditures in excess of the budget in the following amount for the year ended June 30,2007: Redevelopment Agency Debt Service Fund $ 1,653,997 The variance in the RDA Debt Service Fund of$1,653,997 is mainly a result of the required tax increment pass-through payments that were higher than budgeted reflecting the increase in property tax revenue received. The variance is also a result of the costs related to the issuance of the 2006 Tax Allocation Bonds. 49 City of Moorpark Notes to Financial Statements Year Ended June 30, 2007 14)COMMITMENTS AND CONTINGENCIES A) Commitments The City has contracts with 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 disallowance under the terms of the grants, it is believed that any disallowed amounts will not be material. 15)PRIOR PERIOD ADJUSTMENTS A) Governmental Activities The prior period adjustment of$387,842 in the statement of activities consists of the following: In the prior year $261,939 of interest receivable was not properly accrued and recorded as revenue. In the Local Transportation Transit fund revenue of$30,000 was recorded in the prior year,however,the availability period for the revenue had passed and the revenue should have been deferred in the prior year. Accumulated depreciation in the prior years was overstated by$118,391. Also,$37,512 in capital assets was not recorded in prior years but should have been. B) Fund Financial Statements The prior period adjustment of$6,969,020 in the statement of revenues,expenditures,and changes in fund balances for the governmental funds represents land and buildings previously recorded as capital assets in prior years of $5,674,581 and $1,062,500 respectively, which were removed from capital assets and added to property held for resale in the fund financial statements. Also interest receivable of$261,939 was not properly accrued and recorded as revenue in the prior year. In the Local Transportation Transit fund,revenue of$30,000 was recorded in the prior year;however,the availability period had passed and the revenue should have been deferred in the funds in the prior year. 50 REQUIRED SUPPLEMENTARY INFORMATION City of Moorpark Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - General Fund Year Ended June 30,2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Taxes $ 7,105,000 $ 7,435,000 $ 7,358,332 $ (76,668) Licenses&Permits 57,000 57,000 65,630 8,630 Fines&Forfeitures 125,500 131,000 193,949 62,949 Use of Money and Property 959,000 1,089,000 1,729,467 640,467 Charges for Services 397,300 409,800 613,796 203,996 Intergovernmental 2,561,625 2,776,625 3,141,363 364,738 Other Revenue 266,500 266,500 338,929 72,429 Total Revenues 11,471,925 12,164,925 13,441,466 1,276,541 EXPENDITURES Current: General Government 1,932,745 1,971,909 1,465,126 506,783 Public Safety 5,864,381 5,872,683 5,584,268 288,415 Public Services 238,906 790,046 412,512 377,534 Parks and Recreation 1,563,916 1,610,366 1,277,148 333,218 Capital Outlay 208,011 909,849 662,052 247,797 Total Expenditures 9,807,959 11,154,853 9,401,106 1,753,747 Excess(Deficiency)of Revenues over Expenditures 1,663,966 1,010,072 4,040,360 3,030,288 OTHER FINANCING SOURCES(USES) Gain From Sale of Property 1,000 1,000 Transfers Out (1,592,179) (1,633,179) (1,142,090) 491,089 Total Other Financing Sources(Uses) (1,592,179) (1,633,179) (1,141,090) 492,089 Net Change in Fund Balance 71,787 (623,107) 2,899,270 3,522,377 Fund Balance,Beginning of Year 21,244,411 21,244,411 21,244,411 Prior Period Adjustments 261,939 261,939 Fund Balance,End of Year $ 21,316,198 $ 20,621,304 $ 24,405,620 $ 3,784,316 51 City of Moorpark Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Street and Traffic Safety Special Revenue Fund Year Ended June 30,2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 468,633 $ 468,633 $ 807,394 $ 338,761 Development Fees 4,000,730 4,000,730 1,849,025 (2,151,705) Total Revenues 4,469,363 4,469,363 2,656,419 (1,812,944) EXPENDITURES Current: Public Services 156,730 156,730 25,650 131,080 Capital Outlay 1,265,825 1,709,970 266,373 1,443,597 Total Expenditures 1,422,555 1,866,700 292,023 1,574,677 Excess(Deficiency)of Revenues over Expenditures 3,046,808 2,602,663 2,364,396 (238,267) Fund Balance,Beginning of Year 14,689,787 14,689,787 14,689,787 Fund Balance,End of Year $ 17,736,595 $ 17,292,450 $ 17,054,183 $ (238,267) 52 City of Moorpark Statement of Revenues,Expenditures, and Changes in Fund Balances Budget and Actual - Community Development Special Revenue Fund Year Ended June 30,2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Building and Safety Fees $ 1,330,444 $ 830,444 $ 716,552 $ (113,892) Planning and Public Works Fees 1,681,971 1,409,011 1,649,002 239,991 Other Revenue 2,000 2,000 6,106 4,106 Total Revenues 3,014,415 2,241,455 2,371,660 130,205 EXPENDITURES Current: General Government 7,500 7,500 6,228 1,272 Public Services 3,438,407 2,932,615 2,709,564 223,051 Capital Outlay 39,995 39,995 36,887 3,108 Total Expenditures 3,485,902 2,980,110 2,752,679 227,431 Excess(Deficiency)of Revenues over Expenditures (471,487) (738,655) (381,019) 357,636 OTHER FINANCING SOURCES(USES) Transfers In 58,398 58,398 (58,398) Total Other Financing Sources(Uses) 58,398 58,398 - (58,398) Net Change in Fund Balance (413,089) (680,257) (381,019) 299,238 Fund Balance,Beginning of Year 793,273 793,273 793,273 Fund Balance,End of Year $ 380,184 $ 113,016 $ 412,254 $ 299,238 53 City of Moorpark Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual -Areas of Contribution Special Revenue Fund Year Ended June 30,2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 453,886 $ 453,886 $ 587,139 $ 133,253 Development Fees 1,782,851 1,782,851 568,843 (1,214,008) Other Revenue 338,870 338,870 Total Revenues 2,236,737 2,236,737 1,494,852 (741,885) EXPENDITURES Capital Outlay 4,223,655 4,589,982 1,227,661 3,362,321 Total Expenditures 4,223,655 4,589,982 1,227,661 3,362,321 Excess(Deficiency)of Revenues over Expenditures (1,986,918) (2,353,245) 267,191 2,620,436 OTHER FINANCING SOURCES(USES) Transfers In - Transfers Out - Total Other Financing Sources(Uses) - - - - Net Change in Fund Balance (1,986,918) (2,353,245) 267,191 2,620,436 Fund Balance,Beginning of Year 11,113,513 11,113,513 11,113,513 Fund Balance,End of Year $ 9,126,595 $ 8,760,268 $ 11,380,704 $ 2,620,436 54 City of Moorpark Statement of Revenues,Expenditures, and Changes in Fund Balances Budget and Actual -Endowment Special Revenue Fund Year Ended June 30,2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 122,133 $ 122,133 $ 138,748 $ 16,615 Development Fees 2,800,220 2,885,293 2,258,950 (626,343) Total Revenues 2,922,353 3,007,426 2,397,698 (609,728) EXPENDITURES Capital Outlay 5,547,379 3,009,176 2,725,789 283,387 Total Expenditures 5,547,379 3,009,176 2,725,789 283,387 Excess(Deficiency)of Revenues over Expenditures (2,625,026) (1,750) (328,091) (326,341) OTHER FINANCING SOURCES(USES) Transfers Out (2,018,260) (7,453,094) (5,434,834) 2,018,260 Total Other Financing Sources(Uses) (2,018,260) (7,453,094) (5,434,834) 2,018,260 Net Change in Fund Balance (4,643,286) (7,454,844) (5,762,925) 1,691,919 Fund Balance,Beginning of Year 12,575,479 12,575,479 12,575,479 Fund Balance,End of Year $ 7,932,193 $ 5,120,635 $ 6,812,554 $ 1,691,919 55 City of Moorpark Statement of Revenues,Expenditures, and Changes in Fund Balances Budget and Actual -Park/Public Facilities Special Revenue Fund Year Ended June 30, 2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 180,182 $ 244,182 $ 312,026 $ 67,844 Development Fees 2,223,144 2,248,144 1,032,193 (1,215,951) Other Revenue 309 309 Total Revenues 2,403,326 2,492,326 1,344,528 (1,147,798) EXPENDITURES Public Services 60,000 215,824 141,901 73,923 Capital Outlay 3,598,634 4,101,555 748,622 3,352,933 Total Expenditures 3,658,634 4,317,379 890,523 3,426,856 Excess(Deficiency)of Revenues over Expenditures (1,255,308) (1,825,053) 454,005 2,279,058 OTHER FINANCING SOURCES(USES) Transfers Out - Total Other Financing Sources(Uses) - - - - Net Change in Fund Balance (1,255,308) (1,825,053) 454,005 2,279,058 Fund Balance,Beginning of Year 5,372,931 5,372,931 5,372,931 Fund Balance,End of Year $ 4,117,623 $ 3,547,878 $ 5,826,936 $ 2,279,058 56 This page intentionally left blank SUPPLEMENTARY INFORMATION City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Police Facilities Fee Capital Projects Fund Year Ended June 30, 2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ $ $ 1 $ 1 Maintenance Assessments 581,686 581,686 192,729 (388,957) Total Revenues 581,686 581,686 192,730 (388,956) EXPENDITURES Capital Outlay 5,000 594,748 116,889 477,859 Total Expenditures 5,000 594,748 116,889 477,859 Excess(Deficiency)of Revenues over Expenditures 576,686 (13,062) 75,841 88,903 OTHER FINANCING SOURCES(USES) Transfers In 5,434,834 5,434,834 - Total Other Financing Sources(Uses) - 5,434,834 5,434,834 - Net Change in Fund Balance 576,686 5,421,772 5,510,675 88,903 Fund Balance,Beginning (7,716,451) (7,716,451) (7,716,451) Fund Balance,Ending $ (7,139,765) $ (2,294,679) $ (2,205,776) $ 88,903 57 City of Moorpark Schedule of Revenues,Expenditures, and Changes in Fund Balances Budget and Actual -Redevelopment Agency Capital Projects Fund Year Ended June 30,2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 809,488 $ 893,488 $ 1,123,833 $ 230,345 Other Revenue 82,271 1,032,537 1,032,562 25 Total Revenues 891,759 1,926,025 2,156,395 230,370 EXPENDITURES Current: Public Services 1,058,373 982,196 925,806 56,390 Capital Outlay 2,532,010 3,459,991 571,192 2,888,799 Total Expenditures 3,590,383 4,442,187 1,496,998 2,945,189 Excess(Deficiency)of Revenues over Expenditures (2,698,624) (2,516,162) 659,397 3,175,559 OTHER FINANCING SOURCES(USES) Transfers In 1,456,811 1,456,811 591,812 (864,999) Gain From Sale of Property 275,797 275,797 Bond Proceeds 8,923,500 8,923,500 - Total Other Financing Sources(Uses) 1,456,811 10,380,311 9,791,109 (589,202) Net Change in Fund Balances (1,241,813) 7,864,149 10,450,506 2,586,357 Fund Balance,Beginning of Year 9,887,050 9,887,050 9,887,050 Prior Period Adjustments 6,566,981 6,566,981 Fund Balances,End of Year $ 8,645,237 $ 17,751,199 $ 26,904,537 $ 9,153,338 58 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Redevelopment Agency Debt Service Fund Year Ended June 30,2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Taxes $ 5,358,000 $ 5,386,846 $ 6,347,692 $ 960,846 Use of Money and Property 309,985 309,985 316,015 6,030 Total Revenues 5,667,985 5,696,831 6,663,707 966,876 EXPENDITURES Current: Public Services 1,900,000 1,900,000 2,869,751 (969,751) Debt Service Principal 440,000 440,000 440,000 - Interest 1,201,975 1,201,975 1,380,633 (178,658) Bond Issuance Costs 505,588 (505,588) Total Expenditures 3,541,975 3,541,975 5,195,972 (1,653,997) Excess(Deficiency)of Revenues over Expenditures 2,126,010 2,154,856 1,467,735 (687,121) OTHER FINANCING SOURCES(USES) Bond Proceeds 1,940,511 2,771,500 830,989 Discount on Bonds (325,401) (325,401) Transfers In 152,334 152,334 152,334 - Tranfers Out (2,528,411) (2,528,411) (1,861,350) 667,061 Total Other Financing Sources(Uses) (2,376,077) (435,566) 737,083 1,172,649 Net Change in Fund Balance (250,067) 1,719,290 2,204,818 485,528 Fund Balance,Beginning 1,072,604 1,072,604 1,072,604 Fund Balance,Ending $ 822,537 $ 2,791,894 $ 3,277,422 $ 485,528 59 City of Moorpark Non-Major Governmental Funds June 30,2007 SPECIAL REVENUE FUNDS 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 street 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 conservation, recycling,composting,and proper disposal of hazardous household waste. CAPITAL PROJECTS FUNDS 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. 60 City of Moorpark Combining Balance Sheet Non-Major Governmental Funds June 30, 2007 Special Revenue State and Traffic Affordable Assessment Federal Safety Housing District Assistance ASSETS Cash and Investments $ 648,630 $ 2,722,990 $ 2,375,834 $ 1,848,139 Receivables: Taxes 6,211 Accounts 45,100 403,756 Notes 458,980 Property Held for Resale/Development Total Assets $ 648,630 $ 3,181,970 $ 2,427,145 $ 2,251,895 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable and Accrued Liabiliies $ 5,178 $ 5,000 $ 101,973 $ 341,814 Due to Other Funds 302,820 Deferred Revenue 458,980 6,211 360,927 Total Liabilities 5,178 463,980 108,184 1,005,561 Fund Balances: Reserved For: Property Held for Resale/Development Housing Set-Aside Unreserved,Reported In: Special Revenue Funds 643,452 2,717,990 2,318,961 1,246,334 Capital Projects Funds Total Fund Balances 643,452 2,717,990 2,318,961 1,246,334 Total Liabilities and Fund Balances $ 648,630 $ 3,181,970 $ 2,427,145 $ 2,251,895 61 Special Revenue Capital Projects Total Low and Local Nonmajor State Gas Moderate Transportation Solid City Hall Equipment Governmental Tax Income Housing Transit Waste Building Replacement Funds $ $ 3,107,811 $ 420,144 $ 888,906 $ 393,773 $ 457,946 $ 12,864,173 6,211 70,014 6,091 124,273 27,297 676,531 16,384 475,364 2,231,711 2,231,711 $ 70,014 $ 5,361,997 $ 544,417 $ 916,203 $ 393,773 $ 457,946 $ 16,253,990 $ 19,309 $ 7,186 $ 41,691 $ 7,121 $ $ 43 $ 529,315 7,951 310,771 16,384 546,957 1,389,459 19,309 31,521 588,648 7,121 - 43 2,229,545 2,231,711 2,231,711 3,098,765 3,098,765 50,705 (44,231) 909,082 7,842,293 393,773 457,903 851,676 50,705 5,330,476 (44,231) 909,082 393,773 457,903 14,024,445 $ 70,014 $ 5,361,997 $ 544,417 $ 916,203 $ 393,773 $ 457,946 $ 16,253,990 62 City of Moorpark Combining Statement of Revenues,Expenditures and Changes in Fund Balance Non-Major Governmental Funds Year Ended June 30, 2007 Special Revenue State and Traffic Affordable Assessment Federal Safety Housing District Assistance REVENUES Fines and Forfeitures S 149,630 S S S Use of Money and Property 30,423 118,458 121,908 181,173 Intergovernmental 1,653,471 Maintenance Assessments 1,729,742 Franchise Fees Development Fees 694,840 Other Revenue 8,328 4,408 1,680 Total Revenues 180,053 821,626 1,856,058 1,836,324 EXPENDITURES Current: Public Safety 120,909 273,068 105,672 Public Services 5,208 250,217 Parks and Recreation 2,762,740 Capital Outlay 2,737,020 Debt Service: Interest Total Expenditures 120,909 5,208 3,035,808 3,092,909 Excess(Deficiency)of Revenues Over Expenditures 59,144 816,418 (1,179,750) (1,256,585) OTHER FINANCING SOURCES(USES) Transfers In 1,231,880 Transfers Out (735,862) Total Other Financing Sources(Uses) - - 1,231,880 (735,862) Net Change in Fund Balances 59,144 816,418 52,130 (1,992,447) Fund Balances-Beginning of Year 584,308 1,901,572 2,266,831 3,238,781 Prior Period Adjustments Fund Balances-End of Year $ 643,452 $ 2,717,990 S 2,318,961 $ 1,246,334 63 Special Revenue Capital Projects Total Low and Local Nonmajor State Gas Moderate Transportation Solid City Hall Equipment Governmental Tax Income Housing Transit Waste Building Replacement Funds $ $ $ $ $ $ 5 149,630 195,966 20,664 43,520 21,510 24,356 757,978 665,487 693,095 10,569 3,022,622 1,729,742 292,003 292,003 694,840 7,985 16,167 38,568 673,472 212,133 713,759 346,092 21,510 24,356 6,685,383 499,649 1,191,503 333,677 522,445 220,520 2,523,570 2,762,740 93,960 26,945 205,545 50,050 77,455 3,190,975 20,352 20,352 1,285,463 380,974 727,990 220,520 50,050 77,455 8,997,286 (611,991) (168,841) (14,231) 125,572 (28,540) (53,099) (2,311,903) 735,862 1,269,538 41,000 3,278,280 (130,790) (152,334) (1,018,986) 605,072 1,117,204 - - - 41,000 2,259,294 (6,919) 948,363 (14,231) 125,572 (28,540) (12,099) (52,609) 57,624 4,212,013 783,510 422,313 470,002 13,936,954 170,100 (30,000) 140,100 $ 50,705 $ 5,330,476 $ (44,231) 5 909,082 $ 393,773 $ 457,903 $ 14,024,445 64 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Traffic Safety Special Revenue Fund Year Ended June 30, 2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Fines and Forfeitures $ 175,000 $ 175,000 $ 149,630 $ (25,370) Use of Money and Property 23,500 23,500 30,423 6,923 Total Revenues 198,500 198,500 180,053 (18,447) EXPENDITURES Current: Public Safety 126,884 127,654 120,909 6,745 Total Expenditures 126,884 127,654 120,909 6,745 Net Change in Fund Balance 71,616 70,846 59,144 (11,702) Fund Balance,Beginning of Year 584,308 584,308 584,308 Fund Balance,End of Year $ 655,924 $ 655,154 $ 643,452 $ (11,702) 65 City of Moorpark Schedule of Revenues,Expenditures, and Changes in Fund Balance Budget and Actual -Affordable Housing Special Revenue Fund Year Ended June 30,2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 41,702 $ 41,702 $ 118,458 $ 76,756 Development Fees 1,510,762 1,510,762 694,840 (815,922) Other Revenue 30,000 30,000 8,328 (21,672) Total Revenues 1,582,464 1,582,464 821,626 (760,838) EXPENDITURES Current: Public Services 116,900 122,050 5,208 116,842 Capital Outlay 200,000 200,000 200,000 Total Expenditures 316,900 322,050 5,208 316,842 Net Change in Fund Balance 1,265,564 1,260,414 816,418 (443,996) Fund Balance,Beginning of Year 1,901,572 1,901,572 1,901,572 Fund Balance,End of Year $ 3,167,136 $ 3,161,986 $ 2,717,990 $ (443,996) 66 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Assessment District Special Revenue Fund Year Ended June 30, 2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 100,789 $ 100,789 $ 121,908 $ 21,119 Maintenance Assessments 1,695,178 1,718,637 1,729,742 11,105 Other Revenue 4,500 4,500 4,408 (92) Total Revenues 1,800,467 1,823,926 1,856,058 32,132 EXPENDITURES Current: Public Safety 267,317 277,317 273,068 4,249 Parks and Recreation 3,156,737 3,207,237 2,762,740 444,497 Capital Outlay 429,565 429,565 429,565 Total Expenditures 3,853,619 3,914,119 3,035,808 878,311 Excess(Deficiency)of Revenues over Expenditures (2,053,152) (2,090,193) (1,179,750) 910,443 OTHER FINANCING SOURCES(USES) Transfers In 1,873,573 1,873,573 1,231,880 (641,693) Total Other Financing Sources(Uses) 1,873,573 1,873,573 1,231,880 (641,693) Net Change in Fund Balance (179,579) (216,620) 52,130 268,750 Fund Balance,Beginning 2,266,831 2,266,831 2,266,831 Fund Balance,Ending $ 2,087,252 $ 2,050,211 $ 2,318,961 $ 268,750 67 City of Moorpark Schedule of Revenues,Expenditures, and Changes in Fund Balance Budget and Actual - State and Federal Assistance Special Revenue Fund Year Ended June 30, 2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 121,880 $ 121,880 $ 181,173 $ 59,293 Intergovernmental 3,213,617 3,225,617 1,653,471 (1,572,146) Other Revenue 1,680 1,680 Total Revenues 3,335,497 3,347,497 1,836,324 (1,511,173) EXPENDITURES Current: Public Safety 103,000 108,276 105,672 2,604 Public Services 53,171 437,534 250,217 187,317 Capital Outlay 3,835,114 4,453,164 2,737,020 1,716,144 Total Expenditures 3,991,285 4,998,974 3,092,909 1,906,065 Excess(Deficiency)of Revenues over Expenditures (655,788) (1,651,477) (1,256,585) 394,892 OTHER FINANCING SOURCES(USES) Transfers Out (1,153,822) (1,153,822) (735,862) 417,960 Total Other Financing Sources(Uses) (1,153,822) (1,153,822) (735,862) 417,960 Net Change in Fund Balance (1,809,610) (2,805,299) (1,992,447) 812,852 Fund Balance,Beginning of Year 3,238,781 3,238,781 3,238,781 Fund Balance,End of Year $ 1,429,171 $ 433,482 $ 1,246,334 $ 812,852 68 City of Moorpark Schedule of Revenues,Expenditures, and Changes in Fund Balance Budget and Actual - State Gas Tax Special Revenue Fund Year Ended June 30, 2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 11,059 $ 11,059 $ $ (11,059) Intergovernmental 671,000 671,000 665,487 (5,513) Other Revenue 2,400 2,400 7,985 5,585 Total Revenues 684,459 684,459 673,472 (10,987) EXPENDITURES Current: Public Services 1,363,941 1,386,334 1,191,503 194,831 Capital Outlay 134,547 111,709 93,960 17,749 Total Expenditures 1,498,488 1,498,043 1,285,463 212,580 Excess(Deficiency)of Revenues over Expenditures (814,029) (813,584) (611,991) 201,593 OTHER FINANCING SOURCES (USES) Transfers In 1,153,822 1,153,822 735,862 (417,960) Transfers Out (339,793) (339,793) (130,790) 209,003 Total Other Financing Sources(Uses) 814,029 814,029 605,072 (208,957) Net Change in Fund Balance - 445 (6,919) (7,364) Fund Balance,Beginning of Year 57,624 57,624 57,624 Fund Balance,End of Year $ 57,624 $ 58,069 $ 50,705 $ (7,364) 69 City of Moorpark Schedule of Revenues,Expenditures, and Changes in Fund Balance Budget and Actual -Low and Moderate Income Housing Special Revenue Fund Year Ended June 30,2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 143,444 $ 143,444 $ 195,966 $ 52,522 Other Revenue 1,166 16,167 15,001 Total Revenues 143,444 144,610 212,133 67,523 EXPENDITURES Current: Public Services 620,582 640,682 333,677 307,005 Capital Outlay 1,733,196 2,472,030 26,945 2,445,085 Debt Service: Principal 16,000 16,000 16,000 Interest 22,000 22,000 20,352 1,648 Total Expenditures 2,391,778 3,150,712 380,974 2,769,738 Excess(Deficiency)of Revenues over Expenditures (2,248,334) (3,006,102) (168,841) 2,837,261 OTHER FINANCING SOURCES(USES) Transfers In 1,071,600 1,071,600 1,269,538 197,938 Transfers Out (152,334) (152,334) (152,334) - Total Other Financing Sources(Uses) 919,266 919,266 1,117,204 197,938 Net Change in Fund Balance (1,329,068) (2,086,836) 948,363 3,035,199 Fund Balance,Beginning of Year 4,212,013 4,212,013 4,212,013 Prior Period Adjustment 170,100 170,100 Fund Balance,End of Year $ 2,882,945 $ 2,125,177 $ 5,330,476 $ 3,205,299 70 City of Moorpark Schedule of Revenues,Expenditures, and Changes in Fund Balance Budget and Actual -Local Transportation Transit Special Revenue Fund Year Ended June 30, 2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 8,524 $ 8,524 $ 20,664 $ 12,140 Intergovernmental 1,035,424 1,035,424 693,095 (342,329) Total Revenues 1,043,948 1,043,948 713,759 (330,189) EXPENDITURES Current: Public Services 570,377 571,943 522,445 49,498 Capital Outlay 695,431 706,863 205,545 501,318 Total Expenditures 1,265,808 1,278,806 727,990 550,816 Net Change in Fund Balance (221,860) (234,858) (14,231) 220,627 Fund Balance,Beginning of Year - - - - Prior Period Adjustment - - (30,000) (30,000) Fund Balance,End of Year $ (221,860) $ (234,858) $ (44,231) $ 190,627 71 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Solid Waste Special Revenue Fund Year Ended June 30,2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 33,638 $ 33,638 $ 43,520 $ 9,882 Intergovernmental 19,000 29,700 10,569 (19,131) Franchise Fees 275,600 275,600 292,003 16,403 Total Revenues 328,238 338,938 346,092 7,154 EXPENDITURES Current: Public Services 295,284 409,085 220,520 188,565 Capital Outlay 100,000 Total Expenditures 395,284 409,085 220,520 188,565 Net Change in Fund Balance (67,046) (70,147) 125,572 195,719 Fund Balance,Beginning of Year 783,510 783,510 783,510 Fund Balance,End of Year $ 716,464 $ 713,363 $ 909,082 $ 195,719 72 City of Moorpark Schedule of Revenues,Expenditures, and Changes in Fund Balance Budget and Actual - City Hall Building Capital Projects Fund Year Ended June 30, 2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 19,123 $ 19,123 $ 21,510 $ 2,387 Total Revenues 19,123 19,123 21,510 2,387 EXPENDITURES Capital Outlay 2,438,362 2,460,589 50,050 2,410,539 Total Expenditures 2,438,362 2,460,589 50,050 2,410,539 Excess(Deficiency)of Revenues over Expenditures (2,419,239) (2,441,466) (28,540) 2,412,926 OTHER FINANCING SOURCES (USES) Transfer In 2,018,260 2,018,260 (2,018,260) Total Other Financing Sources(Uses) 2,018,260 2,018,260 - (2,018,260) Net Change in Fund Balance (400,979) (423,206) (28,540) 394,666 Fund Balance,Beginning of Year 422,213 422,313 422,313 Fund Balance,End of Year $ 21,234 $ (893) $ 393,773 $ 394,666 73 City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Equipment Replacement Capital Projects Fund Year Ended June 30,2007 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Use of Money and Property $ 17,971 $ 17,971 $ 24,356 $ 6,385 Total Revenues 17,971 17,971 24,356 6,385 EXPENDITURES Capital Outlay 46,320 99,145 77,455 21,690 Total Expenditures 46,320 99,145 77,455 21,690 Excess(Deficiency)of Revenues over Expenditures (28,349) (81,174) (53,099) 28,075 OTHER FINANCING SOURCES(USES) Transfer In 41,000 41,000 - Total Other Financing Sources(Uses) - 41,000 41,000 - Net Change in Fund Balance (28,349) (40,174) (12,099) 28,075 Fund Balance,Beginning of Year 470,002 470,002 470,002 Fund Balance,End of Year $ 441,653 $ 429,828 $ 457,903 $ 28,075 74 City of Moorpark Statement of Changes in Net Assets Agency Funds Year Ended June 30,2007 Balance at Balance at July 1,2006 Additions Deletions June 30,2007 ASSETS Cash and Investments $ 7,508,803 $ 3,281,425 $ (2,026,720) $ 8,763,508 Accounts Receivable 81,123 (10,412) 70,711 Total Assets $ 7,508,803 $ 3,362,548 $ (2,037,132) $ 8,834,219 LIABILITIES Accounts Payable $ 290,510 $ $ (221,676) $ 68,834 Developer Deposits 4,299,907 (1,799,043) 2,500,864 Due to Bondholders 2,918,386 3,346,135 6,264,521 Total Liabilities $ 7,508,803 $ 3,346,135 $ (2,020,719) $ 8,834,219 75 STATISTICAL SECTION CITY OF MOORPARK Net Assets by Component Last Five Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 2007 Governmental activities: Invested in capital assets, net of related debt $ 85,969,804 $ 93,941,392 $ 99,760,671 $ 108,190,324 125,900,770 Restricted 39,344,368 41,506,906 46,405,391 57,986,366 100,649,409 Unrestricted 33,792,567 31,861,714 26,413,978 26,965,428 6,458,224 Total governmental activities net assets $ 159,106,739 $ 167,310,012 $ 172,580,040 $ 193,142,118 $ 233,008,403 The City of Moorpark has elected to report retroactively back to the year the City implemented GASB 34(June 30, 2003). The City of Moorpark does not have any business-type activities. 76 CITY OF MOORPARK Changes in Net Assets Last Five Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 2007 Expenses: Governmental activities: General government $ 2,116,644 $ 2,351,860 $ 3,030,395 $ 3,044,381 $ 1,639,628 Public safety 4,142,268 4,902,148 5,709,323 6,230,057 6,317,283 Public services 7,150,513 10,957,272 9,844,050 13,091,843 21,231,766 Parks and recreation 2,276,066 2,600,523 2,304,852 2,771,270 4,293,823 Interest on long-term debt 1,040,854 1,097,421 978,843 1,333,370 1,332,541 Total governmental activities expense 16,726,345 21,909,224 21,867,463 26,470,921 34,815,041 Program revenues: Governmental activities: Charges for services: General government 611,240 1,559,982 2,205,817 2,500,320 467,973 Public safety 1,499,721 478,971 533,154 5,926,409 698,500 Public services 9,375,386 10,838,840 9,150,233 15,999,135 8,996,673 Community development 1,791,924 2,425,893 690,614 4,363,651 2,334,646 Total governmental activities program revenues 13,278,271 15,303,686 12,579,818 28,789,515 12,497,792 Net revenues(expenses): governmental activities (3,448,074) (6,605,538) (9,287,645) 2,318,594 (22,317,249) Total net revenues(expenses) (3,448,074) (6,605,538) (9,287,645) 2,318,594 (22,317,249) General revenues and other changes in net assets: Governmental activities: Taxes: Property tax 2,413,964 2,658,230 2,655,093 2,929,842 3,334,491 Property tax,Redevelopment Agency 3,577,050 4,116,542 3,901,779 5,530,198 6,347,692 Franchise tax 1,067,669 919,290 955,829 1,080,893 1,126,951 Sales tax 1,664,626 2,176,893 2,046,368 2,260,786 2,192,327 Sales tax in lieu 537,485 608,298 704,562 Motor vehicle in lieu 2,161,324 1,570,551 2,836,154 2,734,470 2,860,207 Investment income 2,027,190 1,363,344 1,725,579 3,261,384 6,556,186 Other 21,479 177,380 1,160,805 135,276 58,841 Gain on sale of property - - 48,339 - 276,797 Special item(1) - (900,000) - - - Total governmental activities 12,933,302 12,082,230 15,867,431 18,541,147 23,458,054 Changes in net assets Governmental activities 9,485,228 5,476,692 6,579,786 20,859,741 1,140,805 Total primary government $ 9,485,228 $ 5,476,692 $ 6,579,786 $ 20,859,741 $ 1,140,805 The City of Moorpark has elected to report retroactively back to the year the City implemented GASB 34(June 30, 2003). (1)Mission Bell note and employee computer loans 2 From Statement of Activities 77 CITY OF MOORPARK Fund Balances of Governmental Funds Last Five Fiscal Years (modified accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 2007 General fund: Reserved $ - $ - $ 5,772,444 $ 2,943,353 $ - Unreserved 13,456,231 14,756,222 12,527,255 18,301,058 24,405,620 Total general fund $ 13,456,231 $ 14,756,222 $ 18,299,699 $ 21,244,411 $ 24,405,620 All other governmental funds: Reserved $ 4,378,065 $ 4,099,849 $ 13,889,036 $ 14,124,235 $ 41,864,116 Unreserved,reported in: Special revenue funds 37,832,070 39,748,684 34,364,075 45,736,017 41,486,631 Capital projects funds 11,798,382 9,847,368 4,247,031 2,186,313 16,807,370 Debt Service funds (97,935) (891,297) (346,716) (321,425) 8,777,212 Total all other governmental funds $ 53,910,582 $ 52,804,604 $ 52,153,426 $ 61,725,140 $ 108,935,329 The City of Moorpark has elected to report retroactively back to the year the City implemented GASB 34(June 30, 2003). 78 CITY OF MOORPARK Changes in Fund Balances of Governmental Funds Last Five Fiscal Years (modified accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 2007 Revenues: Taxes $ 8,490,985 $ 9,870,955 $ 9,139,722 $ 12,231,076 $ 13,706,024 Licenses and permits 51,083 63,146 54,180 72,365 65,630 Fines and forfeitures 290,054 306,871 344,019 340,341 343,579 Uses of money and property 2,027,190 1,363,006 1,924,579 3,261,384 7,085,104 Charges for services 867,731 2,001,561 2,558,974 2,665,391 338,929 Intergovernmental 4,051,263 4,298,009 5,150,992 6,302,193 6,163,985 Maintenance assessments 2,955,340 2,639,628 1,963,190 1,845,742 1,922,471 Franchise fees 232,324 257,127 1,231,763 283,162 292,003 Building and safety fees 608,879 595,138 431,959 1,110,715 716,552 Planning and public work fees 2,132,190 2,614,959 1,967,751 3,053,066 1,649,002 Development fees 4,486,128 4,097,977 2,669,976 15,568,347 6,403,851 Contributions from property owners 34,066,993 Other 256,376 281,506 2,832,962 397,574 2,030,211 Total revenues 26,449,543 28,389,883 30,270,067 47,131,356 74,784,334 Expenditures Current: General government 2,048,658 2,259,017 2,893,359 2,919,564 1,471,354 Public safety 4,127,670 4,882,547 5,690,820 6,211,461 6,083,917 Public services 8,765,039 8,401,453 8,098,147 11,215,406 9,608,754 Parks and recreation 2,063,428 2,381,698 2,081,723 2,544,206 4,039,888 Capital outlay 3,596,982 8,775,159 7,810,879 10,038,439 19,477,866 Debt service: Principal 365,000 395,000 405,000 435,910 440,000 Interest 1,044,915 1,100,996 1,158,585 1,251,354 1,400,985 Bond issuance costs - - - - 505,588 Total expenditures 22,011,692 28,195,870 28,138,513 34,616,340 43,028,352 Excess of revenues over expenditures 4,437,851 194,013 2,131,554 12,515,016 31,755,982 Other financing sources(uses): Gain from sale of property - - 48,339 1,410 276,797 Bond Proceeds 11,695,000 Discount on Bonds (325,401) Transfers in 3,781,938 3,588,717 2,027,315 3,352,002 9,457,260 Transfers out (3,781,938) (3,588,717) (2,027,315) (3,352,002) (9,457,260) Total other financing sources(uses) - - 48,339 1,410 11,646,396 Net change in fund balances $ 4,437,851 $ 194,013 $ 2,179,893 $ 12,516,426 $ 43,402,378 Debt service as a percentage of noncapital expenditures 8.3% 8.3% 8.3% 7.4% 8.7% The City of Moorpark has elected to report retroactively back to the year the City implemented GASB 34(June 30, 2003). 79 CITY OF MOORPARK Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years City Redevelopment Agency Fiscal Year Taxable Taxable Total Ended Less: Assessed Less: Assessed Direct Tax June 30 Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value Rate 1998 $ 1,920,177,164 $ 70,911,851 $ 39,313,581 $ 2,030,402,596 $ 374,566,635 $ 44,499,427 $ 3,738,802 $ 422,804,864 n/a 1999 2,035,487,530 85,464,519 40,240,720 2,161,192,769 375,405,789 54,721,462 3,802,511 433,929,762 1.042% 2000 2,149,505,500 84,834,286 40,687,060 2,275,026,846 397,463,516 47,384,350 3,808,526 448,656,392 1.042% 2001 2,421,104,221 92,634,149 40,786,802 2,554,525,172 434,091,609 59,042,494 3,849,357 496,983,460 1.051% 2002 2,549,782,519 94,204,773 41,025,922 2,685,013,214 456,765,976 64,634,089 3,860,792 525,260,857 1.042% 2003 2,823,727,286 120,175,258 42,238,926 2,986,141,470 514,599,965 84,435,148 3,862,434 602,897,547 1.061% 2004 3,026,137,647 155,943,246 43,185,512 3,225,266,405 542,789,850 95,244,418 3,915,879 641,950,147 1.058% 2005 3,231,418,940 172,769,806 43,305,637 3,447,494,383 532,445,978 93,810,856 3,904,910 630,161,744 1.050% 2006 3,721,591,791 168,802,350 43,313,074 3,933,707,215 660,810,677 99,693,057 3,931,766 764,435,500 1.055% 2007 4,157,360,033 165,798,359 43,364,070 4,366,522,462 743,592,913 102,795,641 3,958,627 850,347,181 1.062% NOTE: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1%based upon the assessed value of the property being taxed. Each year,the assessed value of property may be increased by an"inflation factor"(limited to a maximum increase of 2%). With few exceptions,property is only re-assessed at the time that it is sold to a new owner. At that point,the new assessed value is reassessed at the purchase price of the property sold.The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Source: Ventura County Assessor's Office 80 CITY OF MOORPARK Direct and Overlapping Property Tax Rates (Rate per$100 of assessed value) Last Nine Fiscal Years 1999 2000 2001 2002 2003 2004 2005 2006 2007 City Direct Rates: City basic rate 1.04156 1.04244 1.05062 1.04171 1.06072 1.05820 1.05020 1.05480 1.06163 Redevelopment agency - - - - - - - - - Total City Direct Rate 1.042 1.042 1.051 1.042 1.061 1.058 1.050 1.055 1.062 Overlapping Rates: Ventura County Flood Cont. 8.317 8.012 8.012 8.039 8.097 n/a n/a n/a n/a Metropolitan Water District 0.225 0.222 0.222 0.229 2.340 0.233 0.232 0.235 0.233 Ventura Community College n/a n/a n/a n/a 4.312 4.311 4.269 4.331 4.296 Ventura County Waterworks 100.000 100.000 100.000 n/a n/a n/a n/a n/a n/a Conejo Valley Unified School District 0.003 0.021 0.021 0.027 0.025 0.024 2.200 0.020 0.019 Moorpark Unified School District n/a n/a n/a 92.311 91.733 91.959 92.121 92.442 92.313 City of Moorpark 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 City of Moorpark Community Facilities District No.97-1 n/a n/a n/a 100.000 100.000 100.000 100.000 100.000 100.000 City of Moorpark 1915 Act Bonds 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 Total Direct Rate 109.587 109.297 109.306 101.648 107.568 97.585 99.872 98.083 97.923 NOTE: 1) In 1978,California voters passed Proposition 13 which sets the property tax rate at a 1.00%fixed amount. This 1.00%is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00%fixed amount,property owners are charged taxes as a percentage of assessed property values for the payment of the Moorpark Unified School District bonds. 2) The direct and overlapping bonded debt above is not the City's nor the Redevelopment Agency's obligation. Source: California Municipal Statistics 81 CITY OF MOORPARK Principal Property Tax Payers Current Year and Seven Years Ago 2007 2000 Percent of Percent of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value * Value Value Value DBRE Moorpark LLC $ 65,660,200 16.69% $ - 0.00% Waterstone Properties Moorpark LLC 63,280,359 16.09% 0.00% Mission Bell East LLC 24,255,154 6.17% 20,208,563 9.95% James Birkenshaw,Et. Al. 18,760,949 4.77% 12,264,597 6.04% Calabasas BCD Inc. 18,426,875 4.68% 11,751,954 5.79% Fred Kavli 14,809,258 3.76% 12,701,620 6.26% Laars Inc. 14,342,375 3.65% 20,267,350 9.98% Leonard Rose Trust 11,244,746 2.86% 9,998,062 4.92% 6100 Condor LLC 10,315,000 2.62% - 0.00% Shea Homes Limited Partnership 10,256,107 2.61% - 0.00% $ 251,351,023 63.90% $ 87,192,146 42.94% * Due to varying tax rates,the assessed value does not necessarily mean the highest tax The assessed value includes secured and unsecured. Source: HdL 2006-2007 property data 82 CITY OF MOORPARK Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended for the Percent Subsequent Percent June 30 Fiscal Year Amount of Levy Years Amount of Levy 1998 $ 1,191,918 $ 1,170,111 98.17% $ 21,807 $ 1,191,918 100.00% 1999 1,374,741 1,349,054 98.81% 25,687 1,374,741 100.00% 2000 1,410,082 1,385,028 95.20% 25,054 1,410,082 100.00% 2001 1,573,688 1,506,396 95.72% 67,292 1,573,688 100.00% 2002 1,832,673 1,802,895 98.38% 29,778 1,832,673 100.00% 2003 2,036,839 2,009,255 98.65% 27,584 2,036,839 100.00% 2004 2,208,605 2,180,794 98.74% 27,811 2,208,605 100.00% 2005 2,391,927 2,359,181 98.95% 32,746 2,391,927 100.00% 2006 2,705,083 2,668,950 98.66% 36,133 2,705,083 100.00% 2007 3,316,735 2,940,209 88.65% 376,526 3,316,735 100.00% NOTE: The amount presented includes City property taxes only. Source: Ventura County Auditor Controller's Office 83 CITY OF MOORPARK Ratios of Outstanding Debt by Type Last Nine Fiscal Years Governmental Activities Fiscal Year General Tax Total Total Percentage Debt Ended Obligation Allocation Governmental Primary of Personal Per June 30 Bonds Bonds 1 Activities Government Income 2 Capita 2 1999 - $ 9,860,000 $ 9,860,000 $ 9,860,000 0.98% $ 333 2000 - 9,540,000 9,540,000 9,540,000 0.88% 321 2001 - 15,424,000 15,424,000 15,424,000 1.28% 480 2002 - 20,465,000 20,465,000 20,465,000 0.73% 606 2003 - 20,100,000 20,100,000 20,100,000 0.67% 582 2004 - 19,705,000 19,705,000 19,705,000 0.65% 564 2005 - 19,300,000 19,300,000 19,300,000 0.64% 537 2006 - 18,880,000 18,880,000 18,880,000 0.62% 527 2007 30,135,000 30,135,000 30,135,000 0.95% 826 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1 The Moorpark Redevelopment Agency issued$9,860,000 of new tax allocation bonds in 1999, $11,625,000 in 2001, and$11,695,000 in 2006. The principal balance on these three bonds as of June 30, 2007 is $6,870,000, $11,570,000 and$11,695,000 respectively. 2 These ratios are calculated using personal income and population for the prior calendar year. 84 CITY OF MOORPARK Ratio of General Bonded Debt Outstanding Last Nine Fiscal Years Outstanding General Bonded Debt Fiscal Year General Tax Percent of Ended Obligation Allocation Assessed Per June 30 Bonds Bonds Total Value 1 Capita 1999 - 9,860,000 9,860,000 0.38% 333 2000 - 9,540,000 9,540,000 0.35% 321 2001 - 15,424,000 15,424,000 0.51% 480 2002 - 20,465,000 20,465,000 0.64% 606 2003 - 20,100,000 20,100,000 0.56% 582 2004 - 19,705,000 19,705,000 0.51% 564 2005 - 19,300,000 19,300,000 0.47% 537 2006 - 18,880,000 18,880,000 0.40% 527 2007 - 30,135,000 30,135,000 0.58% 826 General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which,the City has none). 1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California. 85 CITY OF MOORPARK Direct and Overlapping Debt June 30,2007 City Assessed Valuation 2006-07 $ 4,367,376,624 Redevelopment Agency Incremental Valuation 585,973,938 Adjusted Assessed Valuation $ 3,781,402,686 Estimated Share of Percentage Debt as of Overlapping Applicable 6/30/2007 Debt Direct and Overlapping Tax and Assessment Debt: Metropolitan Water District 0.233% $ 359,115,000 836,738 Ventura Community College District 4.296% 135,780,000 5,833,109 Conejo Valley Unified School District 0.019% 52,420,143 9,960 Moorpark Unified School District 92.313% 28,354,870 26,175,231 City of Moorpark Community Facilities District No.97-1 100.000% 6,630,000 6,630,000 City of Moorpark Community Facilities District No.2004-1 100.000% 38,030,000 38,030,000 City of Moorpark 1915 Act Bonds 100.000% 1,630,000 1,630,000 Tool Direct and Overlapping Tax&Assessment Debt 621,960,013 79,145,038 Overlapping General Fund Obligation Debt: Ventura County General Fund Obligations 4.295% $ 81,265,000 3,490,332 Ventura County Pension Obligations 4.295% 12,310,000 528,715 Ventura County Superintendent of Schools COPs 4.295% 13,305,000 571,450 Moorpark Unified School District COPs 92.313% 9,485,000 8,755,888 Total Overlapping General Fund Obligation Debt 116,365,000 13,346,384 Combined Total Debt* $ 738,325,013 92,491,422 Total direct and overlapping debt $ 92,491,422 Notes: *Excludes tax and revenue anticipation notes,revenue,mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. The direct and overlapping bonded debt above is not the City's or the Redevelopment Agency's obligation. Source: California Municipal Statistics,Inc. 86 CITY OF MOORPARK Legal Debt Margin Information Last Nine Fiscal Years Fiscal Year Fiscal Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 Assessed valuation $ 2,035,487,530 $2,149,505,500 $ 2,421,104,221 $2,549,782,519 $2,823,727,286 $2,823,727,286 $3,231,418,940 $3,721,591,791 $ 4,157,360,033 Conversion percentage 25% 25% 25% 25% 25% 25% 25% 25% 25% Adjusted assessed valuation 508,871,883 537,376,375 605,276,055 637,445,630 705,931,822 705,931,822 807,854,735 930,397,948 1,039,340,008 Debt limit percentage 15% 15% 15% 15% 15% 15% 15% 15% 15% Debt limit 76,330,782 80,606,456 90,791,408 95,616,844 105,889,773 105,889,773 121,178,210 139,559,692 155,901,001 Total net debt applicable to limit: General obligation bonds 8,910,000 9,540,000 9,195,000 20,465,000 20,100,000 19,695,000 19,300,000 18,880,000 30,135,000 Legal debt margin 67,420,782 71,066,456 81,596,408 75,151,844 85,789,773 86,194,773 101,878,210 120,679,692 125,766,001 Total debt applicable to the limit as a percentage of debt limit 11.7% 11.8% 10.1% 21.4% 19.0% 18.6% 15.9% 13.5% 19.3% The Government Code 2227 of the State of California provides for a legal debt limit of 15%of gross assessed valuation. However,this provision was enacted when assessed valuation was based upon 25%of market value. Effective with the 81-82 fiscal year,each parcel is now assessed at 100%of market value(as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation date for each fiscal year from the current full valuation perspective to the 25%level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. Source: City Finance Department Ventura County Tax Assessor's Office 87 CITY OF MOORPARK Pledged-Revenue Coverage Last Seven Fiscal Years Tax Allocation Bonds Fiscal Year Ended Tax Debt Service June 30 Increment Principal Interest Coverage 2001 2,501,624 345,000 420,193 3.27 2002 2,606,388 355,000 408,638 3.41 2003 3,537,293 365,000 989,554 2.61 2004 4,076,183 395,000 976,140 2.97 2005 3,860,624 405,000 959,942 2.83 2006 5,487,272 420,000 944,281 4.02 2007 6,306,385 440,000 1,085,040 4.14 Note: Details regarding Moorpark Redevelopment Agency outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expenses. 88 CITY OF MOORPARK Demographic and Economic Statistics Last Ten Calendar Years Personal Median Unemployment Calendar Population Income Personal Rate Year (1) (in thousands) (2) Income (2) (3) 1998 29,300 $ 951,752 $ 32,483 6.0% 1999 29,589 1,001,588 33,850 5.3% 2000 29,727 1,088,959 36,632 5.1% 2001 32,150 1,207,136 37,547 5.2% 2002 33,760 2,811,600 83,282 6.8% 2003 34,529 2,978,092 86,249 7.2% 2004 34,933 3,054,507 87,439 6.4% 2005 35,933 3,039,105 84,577 5.4% 2006 35,836 3,050,432 85,122 4.4% 2007 36,480 3,179,341 87,153 4.7% Sources: (1) State Department of Finance or Dave Bobardt (2) County Office of Economic Development VCEDA (3) State of California Employment Development Department(data shown is for the County) 89 CITY OF MOORPARK Principal Employers Current Year and Ten Years Ago 2007 1998 Percent of Percent of Number of Total Number of Total Employer Employees Employment Employees Employment Kavlico 1,200 10.20% 1,000 12.28% Moorpark Unified School Dist. 871 7.41% 700 8.60% Pentair Pool Products 527 4.48% - Waterpik Tech. (Teledyne) 451 3.84% 300 3.68% First Data 442 3.76% - Moorpark College 315 2.68% 500 6.14% Special Devices,Inc. 290 2.47% - SMTEK International 220 1.87% - Aldik 200 1.70% - Axius/Auto Shade 150 1.28% 120 1.47% "Total Employment" as used above represents the total employment of all employers located within City limits. The total number of employees in the City in 2007 were 11,760 as compared to total number of employees in the City in 1998 were 8,142. Source: Chamber of Commerce 90 CITY OF MOORPARK Full-time and Part-time City Employees by Function Last Eight Fiscal Years Function 2000 2001 2002 2003 2004 2005 20062007 General government 18 20 36 43 33 32 31 30 Public safety(crossing guards) 8 6 6 6 7 4 7 7 Public services 21 21 41 38 20 17 17 26 Parks and recreation 45 42 19 19 42 38 41 49 Total 92 89 102 106 102 91 96 112 Public safety' 34 34 33 30 28 31 31 42 ' Police and fire services were provided by the County. Fire=21 and police=21 Source:City Payroll Office 91 CITY OF MOORPARK Operating Indicators by Function Last Ten Fiscal Years 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Police:(A) Arrests 824 874 1,258 1,414 1,235 1,296 1,520 1,388 1,653 1,890 Parking citations issued 2,579 2,582 4,285 3,706 2,890 4,160 Fire:(B) Number of"prime"emergency calls 979 1,013 975 1,103 1,179 1,415 1,308 1,329 2,332 Business Inspections* 417 417 417 117 117 125 125 125 123 Public works:(C) Street resurfacing(miles) - - 73.33 - - 73.33 - 0.10 - 30.0 Parks and recreation:(D) Number of recreation classes - 298 351 423 386 317 290 364 338 479 Number of facility rentals 115 203 243 250 184 258 307 491 338 180 *In November 2001,all business occupancies less than 10,000 sq.feet became eligible for self inspection program. Source:City of Moorpark (A)Provided by Moorpark P.D.;parking citation data is not available for earlier years (B)Ventura County Fire Dept.;-some data not available for earlier years (C)Moorpark Public Works Dept.;-every six years,the City plans to resurface its streets,1/3 every other year (total street miles=220) (D)Arroyo Vista Recreation Dept.;-recreation classes and room rentals began after the park opened 92 CITY OF MOORPARK Capital Asset Statistics by Function Last Nine Fiscal Years Fiscal Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 Police: Stations 1 1 1 1 1 1 2 2 2 Fire: Fire stations 2 2 2 2 2 2 2 2 2 Public works: Streets(miles) 75 75 75 75 75 75 75 75 75 Streetlights 2,264 2,263 2,269 2,299 2,325 2,347 2497 Traffic signals 15 15 15 15 16 17 17 17 17 Parks and recreation: Parks 14 14 14 15 15 15 15 16 16 Community centers 2 2 2 2 2 2 2 2 2 Source:City of Moorpark 93