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HomeMy WebLinkAboutACFR 2012 City of Moorpark, California 'TT'he . • - 4, ..,,._ '`' I % 0044,. '',I. : al& ...at 4"[C.' ...: .,6 - . 'air".C.-. 4*/* t" .T,r' . ' .. ter.& ,., 1 -4- ink - ..- , -v ". .T..-- . ,:,, '''' • .4 4 Al" ,... , . . ...ic...g . # ,. ., . - . ,-1. ,00'.. , ..--....„_ ,••• , , 1 I ' A . 10 ,. . 1 1 0 , I i -- RK CITY ti.,--->.i, 40,,,----------, 4*),. • '\.,.. COM prehenswe Annual , ..& ,-...„ q i . .40 . . Financial Report k 0 0 ffi, i ANNIVERSARY Fiscal Year Ending June 30, 2012 g,...--- ......„-- ;Awl. c.•-.1 ...s 1,6 11. t2TOS:#1)144,:31 14 , 0 A '17 ED atl'' On the cover... The City of Moorpark Library celebrates its 100th Anniversary in 2012. The Library is located at 699 Moorpark Avenue. Picture by Jennifer Mellon, Administrative Services Department CITY OF MOORPARK, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2012 Prepared By: Ron Ahlers, Finance Director Irmina Lumbad, Budget& Finance Manager City of Moorpark Comprehensive Annual Financial Report Year Ended June 30, 2012 TABLE OF CONTENTS PAGE I. INTRODUCTORY SECTION Letter of Transmittal i -v Directory of Officials vi Organizational Chart vii Certificate of Achievement of Excellence in Financial Reporting viii II. FINANCIAL SECTION Independent Auditors' Report 1-2 Management Discussion &Analysis 3-13 Basic Financial Statements: Government-wide Financial Statements Statement of Net Assets 14 Statement of Activities 15 Fund Financial Statements Balance Sheet-Governmental Funds 16-19 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 20 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 21-24 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 Statement of Fiduciary Assets and Liabilities 26 Statement of Changes in Fiduciary Net Assets 27 Notes to Financial Statements 28-69 Required Supplementary Information: Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - General Fund 70-72 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual -Street and Traffic Safety Special Revenue Fund 73 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual—Assessment District Special Revenue Fund 74 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual— Los Angeles A.O.C. Special Revenue Fund 75 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - Park/Public Facilities Special Revenue Fund 76 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual— MRA Low-Mod Special Revenue Fund 77 City of Moorpark Comprehensive Annual Financial Report Year Ended June 30, 2012 TABLE OF CONTENTS -Continued PAGE Required Supplementary Information -Continued: Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual— MRA Operating Special Revenue Fund 78 Schedule of Funding Progress for MRHP 79 Notes to Required Supplementary Information 80 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 81 MRA Capital Projects Fund 82 Special Projects Capital Projects Fund 83 MRA Debt Service Fund 84 Non-Major Governmental Funds 85-86 Non-Major Governmental Funds - Combining Balance Sheet 87-92 Non-Major Governmental Funds - Combining Statement of Revenues, Expenditures and Changes in Fund Balance 93-98 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual: Library Services Special Revenue Fund 99 Traffic Safety Special Revenue Fund 100 City Affordable Housing Special Revenue Fund 101 Endowment Special Revenue Fund 102 Community Development Special Revenue Fund 103 Casey/Gabbert Area of Contribution Special Revenue Fund 104 State Gas Tax Special Revenue Fund 105 Prop 1B Local Streets and Roads Special Revenue Fund 106 Art in Public Places Special Revenue Fund 107 Prop 1B Safety and Security Special Revenue Fund 108 State and Federal Assistance Special Revenue Fund 109 Local Transportation Transit Special Revenue Fund 110 Solid Waste Special Revenue Fund 111 Capital Projects Fund 112 City Hall Building Capital Projects Fund 113 Equipment Replacement Capital Projects Fund 114 Statement of Changes in Net Assets -Agency Funds 115 III. STATISTICAL SECTION Net Assets by Component- Last Ten Fiscal Years 116-117 Changes in Net Assets Governmental Activities - Last Ten Fiscal Years 118-119 Fund Balances of Governmental Funds - Last Ten Fiscal Years 120-121 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 122-123 City of Moorpark Comprehensive Annual Financial Report Year Ended June 30, 2012 TABLE OF CONTENTS -Continued PAGE III. STATISTICAL SECTION -Continued Assessed Value and Estimated Actual Value of Taxable Property- Last Ten Fiscal Years 124 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 125 Principal Property Tax Payers- Current Year and Ten Years Ago 126 Property Tax Levies and Collections- Last Ten Fiscal Years 127 Ratios of Outstanding Debt by Type- Last Ten Fiscal Years 128 Ratio of General Bonded Debt Outstanding- Last Ten Fiscal Years 129 Direct and Overlapping Debt 130 Legal Debt Margin Information- Last Ten Fiscal Years 131-132 Pledged Revenue Coverage- Last Ten Fiscal Years 133 Demographic and Economic Statistics- Last Ten Calendar Years 134 Principal Employers-Current and Ten Calendar Years Ago 135 Full-Time and Part-Time City Employees by Function- Last Ten Fiscal Years 136 Operating Indicators by Function- Last Ten Fiscal Years 137 Capital Asset Statistics by Function- Last Ten Fiscal Years 138 INTRODUCTORY SECTION This page intentionally left blank PQ P�4�� F / 9 it f21oopar/ 0Rrto Jo' 799 Moorpark Avenue, Moorpark, California 93021 (805) 517-6200 fax(805) 532-2545 January 30, 2013 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 (City) for the fiscal year ended June 30, 2012. 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 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 of 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 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 2011/12. 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. JANICE S. PARVIN KEITH F. MILLHOUSE ROSEANN MIKOS DAVID POLLOCK MARK VAN DAM Mayor Councilmember Councilmember Councilmember Councilmember THE REPORTING ENTITY AND ITS SERVICES The financial reporting entity includes all the funds of the City as well as all of its component units. The City is the primary government. The component units are the Redevelopment Agency of the City of Moorpark (Agency), the Moorpark Public Financing Authority (Authority) and the Moorpark Industrial Development Authority (IDA). The City was incorporated in 1983 as a general law city and operates under a Council-Manager form of government. The Agency 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. On December 29, 2011, the California Supreme Court upheld Assembly Bill x1 26 ("the Bill") that provides for the dissolution of all redevelopment agencies in the State of California. The Bill provides that upon dissolution of a redevelopment agency, the entity that established the redevelopment agency may elect to serve as the "Successor Agency". The Successor Agency holds the assets of the former redevelopment agency until they are distributed to other units of state and local government after the payment of enforceable obligations that were in effect as of the signing of the Bill. On January 4, 2012, the City elected to become the Successor Agency. Therefore, as of June 30, 2012, the previous Agency is excluded from the City's entity wide statements. The Successor Agency is included as a fiduciary fund (private purpose trust fund). The Authority was formed in 1993 as a joint powers authority between the City and the Agency in order to provide financial assistance to the City and the Agency by issuing debt and financing the construction of public facilities. The IDA of the City 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 approximately 56 and part-time staff of approximately 45 employees. Major services such as police (contracted with Ventura County Sheriff), attorney, library, development engineering and inspection, building and safety plan check/inspection, transit, street sweeping and landscape maintenance are provided through contractual arrangements. In addition, fire protection is provided by the Ventura County Fire District. The City provides services such as emergency management, redevelopment, housing, planning, code compliance, recreation programs, vector/animal control, park and facilities maintenance, street maintenance, city engineering, crossing guard and administrative management services with city employees. HISTORY OF THE CITY OF MOORPARK In 1887, Robert W. Poindexter was granted title to the present site of Moorpark. He named the City after the Moorpark apricot which grew throughout the valley. Poindexter plotted Moorpark city streets and planted Pepper trees in the downtown area. The City 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 -ii- at 12.44 square miles with a population of approximately 34,826 (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 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 an 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 GAAP. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived; and 2) the valuation of the costs and benefits requires estimates and judgments by management. ANNUAL AUDIT An independent accounting firm has performed the annual audit of the City's financial statements for the fiscal year ended June 30, 2012. As part of the annual audit, reviews are made to determine the adequacy of the City's internal control structure, as well as to determine that the City has complied with certain provisions of laws and regulations. Their examination has been completed and the auditor's report on the City's financial statements is included at the beginning of the Financial Section of this report. APPROPRIATION LIMIT Article XIIIB of the California Constitution (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 fiscal year 2011/2012 amounted to $26,792,899 and $13,725,944 respectively. -iii- 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, 2012, approximately $50.2 million was invested with the Ventura County Pool; $31.6 million in various U.S. Treasury Notes and Agency Securities; about $3.0 million in the State Treasurer's Local Agency Investment Fund (LAIF); and $5.1 million was invested in demand deposits. The cash management system of the City 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, ensure 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 infrastructure 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 have been recorded. Capital assets for the fiscal year ended June 30, 2012 have a net ending balance of $139.8 million. LONG-TERM LIABILITIES/BONDED LIABILITIES At June 30, 2012, the City has no outstanding bonds or other debt but does have long-term liabilities in the approximate amount of$0.4 million for employee compensated absences (accrued leave). The Successor Agency has the 1999 Tax Allocation Refunding Bonds, the 2001 Tax Allocation Bonds and the 2006 Tax Allocation Bonds outstanding in the amounts of $4.5 million, $11.5 million and $11.6 million, respectively. The purpose of the 1999 Bonds was to advance refund the Agency's previously issued 1993 Tax Allocation Bonds. The purpose of the 2001 and 2006 bonds were to finance a portion of the costs of implementing the Redevelopment Plan and fund redevelopment activities within the Agency 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 CJPIA. In addition, the City also participates in the all-risk property protection offered by CJPIA. Various control techniques, including safety, ergonomic, harassment and driver awareness training have been implemented to minimize losses. AWARD The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended June 30, 2011. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive -iv- annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENT We would like to express appreciation to all City staff that 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 the auditors, Rogers, Anderson, Melody & Scott, LLP, Certified Public Accountants for their professional assistance. As in the past, the CAFR is available on the City's website at www.ci.moorpark.ca.us. Respectfully submitted, XI-X-117/C-r • STEVEN KUENY RON AHLERS • CITY MANAGER FINANCE DIRECTOR ARK C'4-., 7QO� �ds 4 4iiiirrAmirAkt,,,,, 6, • It as ma " --•,r1 isi o ilq.AFT il 004 i is,d Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2012 DIRECTORY OF CITY OFFICIALS CITY COUNCIL Janice S. Parvin, Mayor Roseann Mikos, Councilmember David Pollock, Councilmember Keith F. Millhouse, Councilmember Mark Van Dam, Councilmember CITY MANAGEMENT STAFF Steven Kueny, City Manager Hugh Riley, Assistant City Manager Deborah Traffenstedt, Deputy City Manager David Bobardt, Community Development Director David Klotzle, City Engineer/Public Works Director Ron Ahlers, Finance Director -vi- CITY OF MOORPARK ORGANIZATION CHART Arts Commission :1 Honorable City CouncilCity Attorney (Contract) Parks and Recreation _ Commission r J City Manager Planning Commission , Assistant Clty Manager Pairiss, RC:c:reotiQrt aria Library Board Community Services Department r Artivr•Adt c rtc^r Animal RequiationrVector Control Pollee Services Art in Public Places (Contract) Emergency Services Library ti ParksiLer dscape/Facilities Maintenance Public.Facility Copitnl Projects Recreation Community Deputy City Manager { Finance City Engineer/ Development Administrative Services/ Department Public Works Department City Clerk. Department Depeirtrrictit - Advari fo Planning City Clerk A;-, ^ir_nt Distrir:t Strait CapitV Prz,iects Building and Safety Human Resources ID-,f:nrg Cry .:;_I Guards Business Registration Information Systems Ca:.-]i) Management --.cirneering CDBG Administration Intergovernmental Centre! Services i\JES Cote Compliance Community and Legislative Finance and Accounting Park nq Enforcement Current Planning Relations Fixed Assets M: ri::c;e:ri& •! ' Dile Waste Economic Development Public Information/Cable TV Payroll .;::rev: r.1.alntenance Housing Risk Management Purchasing —m-,,.,;; Property Management Redevelopment -vii- Certificate of Achievement for Excellence in Financial Reporting Presented to City of Moorpark California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30,2011 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports(CAFRs)achieve the highest standards in government accounting and financial reporting, a AU :'"''6:":;N:" ;;.'1„ *poPresident " ' 1 4- 4- �►r< r Executive Director -viii- FINANCIAL SECTION This page intentionally left blank RA ROGERS,ANDERSON, MALODY& SCOTT, LLP MS CERTIFIED PUBLIC ACCOUNTANTS,SINCE 1948 735 E. Carnegie Dr. Suite 100 San Bernardino, CA 92408 909 889 0871 T 909 889 5361 F ramscpanet Independent Auditors' Report PARTNERS Brenda L.Odle.CPA,MST Terry P. Shea,CPA Kirk A Franks,CPA The Honorable City Council Matthew B.Wilson,CPA,MSA The City of Moorpark, California Scott W. Manno,CPA Leena Shanbhag,CPA.MST jay H. Zer CPA(Retired) Phillip H.Waller,CPA(Retired; statements of We have audited the accompanyingfinancial the governmental (R activities, each major fund, and the aggregate remaining fund information of MANAGERS STAFF the City of Moorpark, California (City), as of and for the year ended June 30, Nancy ORafferty,CPA,MB,' 2012, which collectively comprise the City's basic financial statements as Brrd A.welebii CPA,MBA listed in the table of contents. These financial statements are the Jenny Liu, CPA,MST Katie L. Millsom,CPA responsibility of the City's management. Our responsibility is to express Papa Matar Thiaw,CPA,MB^ opinions on these financial statements based on our audit. Maya S. Ivanova,CPA,MBA William C. Clayton,CPA Peter E Murray,CPA We conducted our audit in accordance with auditing standards generally Genivive Schwarzkopf,CPG accepted in the United States of America and the standards applicable to Megan Hackney.CPA financial audits contained in Government Auditing Standards, issued by the Seong-Hyea Lee,CPA,MBA Comptroller General of the United States. Those standards require that we Charles De Simon',CPA p q plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2012, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles MEMBERS generally accepted in the United States of America. American Institute of Certified Public Accountants As discussed in Note 15 to the financial statements, there have been recent PCPS The AICPA Alliance changes in legislation affecting redevelopment agencies in the State of for CPA Firms California which required the dissolution of redevelopment agencies as of Governmental Audit February 1, 2012, including the Redevelopment Agency of the City of Quality Cenier Moorpark. California Society of Certified Public Accountants STABILITY. ACCURACY. TRUST. In accordance with Government Auditing Standards, we have also issued our report dated January 30, 2013 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and 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 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. Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3 through 13, the budgetary comparison information on pages 70 through 78, and the schedule of funding progress on page 79 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or to provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's financial statements as a whole. 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 financial statements. The combining statements and schedules included in the supplementary information section are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statement themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 49./A,a) ds./uo Itocty L 110 January 30, 2013 -2- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2012 As management of the City of Moorpark, California (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, 2012. 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 fiscal year 2011/12 by $234,316,279 (Net Assets). Of this amount, $7,245,370 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. GASB 34 defines "Net Assets" as assets less liabilities. GASB 34 requires the City to record infrastructure assets (streets, parks, buildings, etc.) less accumulated depreciation as a restricted fund balance titled, "Invested in Capital Assets". These factors, along with restrictions for Special Revenue Funds, reduce the Total Net Assets $234,316,279 to the Unrestricted Net Assets $7,245,370. The Statement of Net Assets is presented on page 14. • The City's Total Net Assets increased by $1,484,879 during the current fiscal year. The Statement of Activities is presented on page 15. • As of June 30, 2012, the City's governmental funds (General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds) reported combined ending fund balances of $92,238,637, a decrease of$19,045,257, from the prior year. The entire decrease is a result of the loss on the dissolution of the Redevelopment Agency of the City of Moorpark (Agency). • At the end of the current fiscal year, fund balances for the General Fund were $3,610,085 ($654,207 is in nonspendable form, and $2,955,878 is unassigned). • The City's total Liabilities decreased by $27,833,807 or 98% during the current fiscal year. The majority of the decrease is due to the dissolution of the Agency. The Agency's 1999, 2001 and 2006 Tax Allocation Bonds are not a debt of the City, but a debt of the Successor Agency as is now reported as a Private Purpose Trust Fund in the Fiduciary Fund category. 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 are comprised of 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. The government-wide financial statements include the statement of net assets and the statement of activities -3- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2012 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 expenditures 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 as the primary government, but also a legally separate Redevelopment Agency of the City of Moorpark (Agency), the Moorpark Public Financing Authority (Authority), and the Industrial Development Authority (IDA) of the City. 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 Agency was dissolved on February 1, 2012 as legislated in Assembly Bill x1 26. 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. The City maintains a variety of 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, Assessment Districts, Los Angeles Area of Contribution, Parks/Public Facilities, Low and Moderate Income Housing Asset, Redevelopment Agency Low-Mod, Redevelopment Agency Operating, Police Facilities Fee, -4- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2012 Redevelopment Agency Capital Projects, Special Projects and Redevelopment Agency Debt Service. All of which are considered to be major funds. Data from the remaining 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 "agency" funds are custodial in nature and, therefore, the accounting used on them does not involve the measurement of the results of operations. Fiduciary "private-purpose trust" funds are used to report all trust arrangements under which "principal and income benefit individuals, private organizations or other governments (GASB No. 34)". The measurement of the result of operations (change in fiduciary net assets) of a private-purpose trust fund is reported in a statement of changes in fiduciary net assets. The basic fiduciary funds financial statements can be found on pages 26- 27 of this report. The assets, liabilities, fund equity and operations of the dissolved Redevelopment Agency were transferred to the "Successor Agency Private-Purpose Trust Fund". Notes to the Basic Financial Statements: The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 29-69 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS The City has continued to present its financial statements under the reporting model required by GASB No. 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 $234.3 million at the close of the current fiscal year. The City's net assets invested in capital assets, net of related debt reflects a positive $139.8 million. As shown on Table 1, the largest portion of the City's net assets (59%) is its investment in capital assets. The City uses these capital assets (parks, streets, sidewalks, etc.) to provide services to citizens; consequently, these assets are not available for future spending. -5- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2012 An additional portion of the City's net assets (37%) 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 (4%) 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, 2012, 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 30,2012 and 2011 2012 2011 Assets: Current and other assets $ 96,908,780 $ 120,733,509 Capital assets 139,795,930 145,841,042 Total Assets 236,704,710 266,574,551 Liabilities: Long-term debt outstanding - 27,640,038 Other liabilities 2,388,431 7,035,903 Total Liabilities 2,388,431 34,675,941 Net Assets: Invested in capital assets, net of related debt 139,795,930 145,841,042 Restricted 87,274,979 72,652,252 Unrestricted 7,245,370 13,405,316 Total Net Assets $ 234,316,279 $ 231,898,610 The City's Net Assets increased by $1.5 million during the current fiscal year. -6- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2012 Table 2 Changes in Net Assets Governmental Activities As of June 30,2012 and 2011 2012 2011 Revenues Program Revenues: Charges for services $ 3,700,311 $ 3,957,412 Operating contributions and grants 3,702,582 5,999,168 Capital contributions and grants 2,770,701 1,703,076 General Revenues: Property taxes 6,943,275 7,287,282 Tax increment 3,389,064 6,755,960 Franchise taxes 1,231,741 1,207,778 Sales taxes 2,622,419 2,577,105 Sales tax in lieu 857,217 940,791 Motor vehicle in lieu tax 18,590 170,592 Investment income 1,206,622 856,413 Other 245,235 212,487 Extraordinary gain-dissoluton of redevelopment agency 356,845 - Total Revenues 27,044,602 31,668,064 Expenses General government 2,207,826 3,201,184 Public safety 6,158,455 7,070,049 Public services 11,134,822 31,775,462 Parks and recreation 5,704,208 4,658,717 Interest on long-term debt 354,412 1,492,604 Total Expenses 25,559,723 48,198,016 Increase in net assets 1,484,879 (16,529,952) Net assets-July 1, as restated 232,831,400 248,428,562 Net assets-June 30, $ 234,316,279 $ 231,898,610 -7- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2012 Program Revenues Capital Contributions and Charges for Grants, 22% Services,39 11" Operating Contributions and Grants,39% General Revenues Motor vehicle Investment Extraordinary in lieu tax income item 1% Contributed 7% 2% Other Capital I � 1% Sales tax—N, 4% in lieu 5% C ,,, Property taxes 40% Sales taxes 15% 4410.1.°*" 1111 Franchise, taxes 6% Tax increment 19% - 8 - CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2012 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 net resources. Such information is useful in assessing the City's current financial requirements or its liquidity. Beginning fiscal year ending June 30, 2011, GASB 54 required the implementation of the new fund balance classification that focuses on the constraints on the use of resources and the source of the constraints. The five (5) fund balance categories are: Nonspendable — net resources that cannot be spent because of their form or those resources that should be maintained intact Restricted — amounts constrained to specific purpose by external providers, by law through constitutional provisions or by enabling legislation Committed — funds are limited to a specific purpose by government itself through resolution or ordinance Assigned — resources intended for a specific purpose by the governing body or official delegated by the governing body Unassigned — represents the General Fund net residual fund balance available for any purposes and other governmental funds in a deficit position. As of the end of the current fiscal year, the City's governmental funds reported total fund balances of $92,238,637. This is a decrease of$19,045,257 in comparison with the prior year. About $3,709,271 or 4% is nonspendable, $55,945,095 or 60.7% is restricted to specific purpose, $783,281 or 0.8% is committed, $30,892,276 or 33.5% is assigned and approximately $908,714 or 1.0% of the fund balances constitutes unassigned fund balance. 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 $3,610,085, which decreased by $1,000 over prior year. 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 30% of total General Fund expenditures and transfers out. This is a healthy reserve. Key factors for revenues and expenses when compared to fiscal year 2010/11 are as follows: • The City's share of property taxes increased by$451,578 or 7.0%. • Sales tax revenues grew by approximately $45,314 or 1.8% as we slowly emerged from the economic downturn. • The Sales Tax Compensation or "triple flip" decreased by $83,574 or 8.9%. This revenue is calculated by the State each year. • Interest earnings increased slightly by $79,810 or 26% in response to still declining rates in the market. -9- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2012 • Motor vehicle in lieu has been eliminated by the State. The City received residual revenue in the amount of$18,590. • Expenditures and transfers out ended the year approximately $1.7 million less than the prior year figure primarily due to the payoff in the prior year of the following liabilities: CaIPERS side fund ($1,352,300), OPEB ($103,000) and general liability retrospective deposit balance due to the California Joint Powers Insurance Authority (CJPIA) ($473,300). 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 decreased slightly by$29,531. Assessment District Fund The fund balance of the Assessment District Fund decreased by $314,441 from the prior year. Increasing operating costs of water and landscaping caused this deficit. The General Fund will cover this deficit in the following year's budget. Los Angeles Area of Contribution Fund The fund balance of the Los Angeles Area of Contribution Fund remained stable at approximately $11.8 million. Park/Public Facilities Fund (Includes ten (10) various development fee related funds) The fund balance of the Park/Public Facilities Fund increased by$172,063 to $917,238. No major capital projects occurred during the year. Successor Low and Moderate Income Housing Asset Fund The City elected to become the Successor Agency to the Low and Moderate Income Housing Asset Fund. The assets transferred consisted primarily of land for affordable housing units. MRA Low and Moderate Income Housing Fund ABx1 26 eliminated this fund from the City. The City elected to become the Successor Agency, described above, in order to preserve the land purchased for affordable housing units. MRA Operating Fund ABx1 26 eliminated this fund from the City. The City elected to become the Successor Agency to the Redevelopment Agency of the City of Moorpark. The assets, liabilities and fund equity were transferred to the "Successor Agency Private Purpose Trust Fund". Police Facilities Fee Fund The fund balance of the Police Facilities Fund improved by $16,432 from the prior year. These funds are transferred to the Endowment Fund as payback for the loan to construct the Police Services Center. -10- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2012 Redevelopment Agency Capital Projects Fund ABx1 26 eliminated this fund from the City. The City elected to become the Successor Agency to the Redevelopment Agency of the City of Moorpark. The assets, liabilities and fund equity were transferred to the "Successor Agency Private Purpose Trust Fund". The Redevelopment Agency Capital Projects fund balance is constructing the Ruben Castro Human Services Center(RCHSC). Redevelopment Agency Debt Service Fund ABx1 26 eliminated this fund from the City. The City elected to become the Successor Agency to the Redevelopment Agency of the City of Moorpark. The assets, liabilities and fund equity were transferred to the "Successor Agency Private Purpose Trust Fund". Non-Major Governmental Funds The fund balance of all other Non-Major Governmental Funds grew by $706,981 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 Bond's 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, 2012, were revenues exceeding expenditures by approximately $1.5 million which was transferred to the Special Projects Fund. Revenues plus Transfers In were $2.3 million less than the budget and expenditures plus Transfers Out ended the year under budget by$0.21 million. CAPITAL ASSET AND LONG-TERM LIABILITIES Capital Assets: The City's investment in capital assets as of June 30, 2012, amounted to $139.8 million (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 decrease in the City's investment in capital assets for the current fiscal year was $6.0 million or 4.1%. Construction in Progress shows the largest decrease in 2012 at $5.7 million. This reduction is due to the demise of the Redevelopment Agency and the transfer of assets to the Successor Agency Private Purpose Trust Fund. -11- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2012 Table 3 Capital Assets (net of depreciation) Governmental Activities As of June 30, 2012 and 2011 2012 2011 Land $ 39,520,861 $ 38,857,043 Construction in Progress 6,665,025 12,401,812 Buildings and improvements 29,929,267 29,248,760 Machinery and equipment 2,954,181 2,887,655 Infrastructure 60,726,596 62,445,772 Total $139,795,930 $145,841,042 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 pages 48-49 of this report. Long-term Liabilities At the end of the current fiscal year, the City's long-term liabilities outstanding are $353,082, which is the employee compensated absences payable. The liabilities are reduced by approximately $28 million which reflects the transfer of the Agency Tax Allocation Bonds to the Successor Agency Private Purpose Trust Fund. The bonds are solely a debt of the Successor Agency and a pledge of Redevelopment Property Tax Trust Fund revenues (RPTTF). Additional information on the City's long-term liabilities can be found in Note 6 on pages 50 to 52 of the basic financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The slow economic recovery in conjunction with the State's efforts to address its budget deficit by taking resources from cities have combined to cause a strain in the City's General Fund. It should be noted that increases in General Fund revenue categories provide optimism for the future, but it is uncertain if these increases will be sustainable over the foreseeable future. In addition, costs continue to outpace any growth seen in major revenues such as property and sales tax. While these categories may not be declining and even increase as was the case this past fiscal year, increases in pension costs and the Ventura County Sheriff's Contract continue to exceed revenue gains. -12- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2012 The State's "Triple Flip" payment plan remains in effect as the State attempts to repay the $15 billion deficit reduction bonds. The impact to the City will be on cash flow and the subsequent reduction in interest income due to biannual (catch-up payments) rather than monthly sales tax payments. The City has additional protections from the State taking our monetary resources thanks to the voter passage of Proposition 22 in November 2010. However, on July 29, 2011, the Governor of the State of California signed Assembly Bills X1 26 (ABx1 26) and X1 27 (ABx1 27) as part of the State budget package. AB x1 26 essentially dissolves the existence of the redevelopment agency while AB x1 27 provides a way to continue the redevelopment agency's program if specified payments are made to the State annually. On July 18, 2011 the League of California Cities and the California Redevelopment Association (CRA), on behalf of cities, counties and redevelopment agencies, filed a lawsuit challenging the constitutionality of these Bills. CRA asserts that both bills violate Article XIII Section 25.5(a)(7)(A) added by Proposition 22. On August 11 and 17, 2011, the California Superior Court issued a stay on some provisions of the AB x1 26 and AB x1 27. On December 29, 2011, the California Supreme Court issued their ruling upholding the constitutionality of AB x1 26 and invalidating AB x1 27; thereby all redevelopment agencies within the State of California are abolished. For fiscal year 2012/13, the City took into consideration the following factors in preparing the budget: • Sales Tax revenues assume a 3% increase from fiscal year 2011/12. • Property Tax and Vehicle License fees revenue are projected to remain status quo. • Interest income will remain stable at an average rate of return of just over 1%. • Slight increase in PERS employer retirement rate from 9.539% to 10.806% effective July 1, 2012. • Projections indicate our cost for general liability and workers compensation insurance will both increase for fiscal year 2012/13 when compared to fiscal year 2011/12 actual payments. A priority of the City is to maintain high quality of services while adopting a balanced budget. As in prior years, the fiscal year 2012/13 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- This page intentionally left blank BASIC FINANCIAL STATEMENTS City of Moorpark Statement of Net Assets June 30, 2012 Governmental Activities ASSETS Cash and investments $ 83,535,251 Cash and investments with fiscal agent 2,844 Receivables, net; Taxes 18,444 Accounts 1,246,644 Interest 354,088 Notes and loans 2,292,829 Prepaid items 56,222 Due from other governments 4,276 Net OPEB asset 416,728 Property held for resale 8,981,454 Capital assets: Non-depreciable: Land 39,520,861 Construction in progress 6,665,025 Depreciable, net of accumulated depreciation Buildings and improvements 29,929,267 Machinery and equipment 2,954,181 Infrastructure 60,726,596 Total assets 236,704,710 LIABILITIES Accounts payable and accrued liabilities 1,682,266 Noncurrent liabilities: Due within one year 353,083 Due in more than one year 353,082 Total liabilities 2,388,431 NET ASSETS Invested in capital assets, net of related debt 139,795,930 Restricted for: Public services 52,506,961 Recreation services 1,700,518 Public safety 18,092,826 Housing activities 14,974,674 Unrestricted 7,245,370 Total net assets $ 234,316,279 The accompanying notes are an integral part of these financial statements. - 14 - City of Moorpark Statement of Activities Year Ended June 30, 2012 Program Revenues Operating Capital Net Charges for Contributions Contributions Governmental Functions/Programs Expenses Service and Grants and Grants Activities Primary Government Governmental activities: General government $ 2,207,826 $ 407,883 $ - $ - $ (1,799,943) Public safety 6,158,455 445,642 - 16,432 (5,696,381) Public services 11,134,822 1,988,453 3,702,582 2,754,269 (2,689,518) Parks and recreation 5,704,208 858,333 - - (4,845,875) Interest on long-term debt 354,412 - - - (354,412) Total governmental activities 25,559,723 3,700,311 3,702,582 2,770,701 (15,386,129) Total primary government $ 25,559,723 $ 3,700,311 $ 3,702,582 $ 2,770,701 General revenues: Taxes: Property tax, levied for general purpose 6,943,275 Property tax, Redevelopment Agency tax increment, restricted 3,389,064 Franchise tax 1,231,741 Sales tax 2,622,419 Sales tax in lieu 857,217 Motor vehicle in lieu tax, unrestricted 18,590 Investment income 1,206,622 Other 245,235 Extraordinary item-gain on dissolution of redevelopment agency 356,845 Total general revenues and extraordinary item 16,871,008 Change in net assets 1,484,879 Net assets, beginning of year,as restated (see Note 16) 232,831,400 Net assets,end of year $ 234,316,279 The accompanying notes are an integral part of these financial statements. - 15 - City of Moorpark Balance Sheet Governmental Funds June 30, 2012 Special Revenue Street and Assessment General Traffic Safety Districts ASSETS Cash and investments $ 3,097,955 $ 19,345,744 $ 6,117,023 Cash and investments with fiscal agent - - - Receivables: Taxes - - 18,444 Accounts 849,589 - 46,014 Interest 174,720 - - Notes and loans - - - Due from other funds 13,513 - - Prepaid items 43,122 - 7,900 Due from other governments 4,276 - - Property held for resale 611,085 - - Total assets $ 4,794,260 $ 19,345,744 $ 6,189,381 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 1,138,292 $ 41,132 $ 132,145 Due to other funds - - - Deferred revenues 45,883 - 18,444 Deferred loans - - - Total liabilities 1,184,175 41,132 150,589 Fund balances: Nonspendable 654,207 - 7,900 Restricted - 19,304,612 6,030,892 Committed - - - Assigned - - - Unassigned 2,955,878 - - Total fund balances 3,610,085 19,304,612 6,038,792 Total liabilities and fund balances $ 4,794,260 $ 19,345,744 $ 6,189,381 The accompanying notes are an integral part of these financial statements. - 16 - Special Revenue Los Angeles Low-Mod Redevelopment Redevelopment Area of Parks/Public Income Agency Agency Contribution Facilites Housing Asset Low-Mod Operating 11,603,080 $ 1,917,238 $ 11,848 $ - $ - 179,368 - - - - 250,249 - 1,792,884 - - 177,006 - - - - - - 8,314,796 - - $ 12,209,703 $ 1,917,238 $ 10,119,528 $ - $ - $ 17,519 $ - $ 11,750 $ - $ - - 1,000,000 - - - 179,369 - - - - 250,249 - 1,792,884 - - 447,137 1,000,000 1,804,634 - - 177,006 - - - - 11,585,560 917,238 8,314,894 - - 11,762,566 917,238 8,314,894 - - $ 12,209,703 $ 1,917,238 $ 10,119,528 $ - $ - The accompanying notes are an integral part of these financial statements. - 17 - City of Moorpark Balance Sheet Governmental Funds - Continued June 30, 2012 Capital Projects Redevelopment Police Agency Special Facilities Fee Capital Projects Projects ASSETS Cash and investments $ - $ - $ 25,247,733 Cash and investments with fiscal agent - - - Receivables: Taxes - - - Accounts - - - Interest - - - Notes and loans - - - Due from other funds - - 1,000,000 Prepaid items - - - Due from other governments - - - Property held for resale - - - Total assets $ - $ - $ 26,247,733 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities - $ - $ - Due to other funds 1,870,158 - - Deferred revenues - - - Deferred loans - - - Total liabilities 1,870,158 - - Fund balances: Nonspendable - - 1,000,000 Restricted - - - Committed - - - Assigned - - 25,247,733 Unassigned (1,870,158) - - Total fund balances (1,870,158) - 26,247,733 Total liabilities and fund balances $ - $ - $ 26,247,733 The accompanying notes are an integral part of these financial statements. - 18 - Debt Service Redevelopment Nonmajor Total Agency Governmental Governmental Debt Service Funds Funds $ - $ 16,194,630 $ 83,535,251 - 2,844 2,844 - - 18,444 - 351,041 1,246,644 - - 354,088 - 249,696 2,292,829 - 1,870,158 3,060,677 - 5,200 56,222 - - 4,276 - 55,573 8,981,454 $ - $ 18,729,142 $ 99,552,729 $ - $ 341,428 $ 1,682,266 - 190,519 3,060,677 - 34,624 278,320 - 249,696 2,292,829 - 816,267 7,314,092 - 1,870,158 3,709,271 - 9,791,899 55,945,095 - 783,281 783,281 - 5,644,543 30,892,276 - (177,006) 908,714 - 17,912,875 92,238,637 $ - $ 18,729,142 $ 99,552,729 The accompanying notes are an integral part of these financial statements. - 19 - This page intentionally left blank City of Moorpark Reconciliation of the Governmental Funds - Balance Sheet to the Statement of Net Assets June 30, 2012 Fund balances of governmental funds $ 92,238,637 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 139,795,930 Long-term notes and loans receivable are not current financial resources and, therefore, are deferred in the governmental funds. 2,292,829 Certain assets are not available to pay for current-period expenditures and therefore are deferred in the funds. The availabity criteria does not apply to the government-wide statements. 278,320 Long term liabilities are not due and payable in the current period and, therefore, are not reported in funds. Compensated absences payable (706,165) The City is required to report a net Other Post Employment Benefits (OPEB) obligation in accordance with Governmental Accounting Standards Board (GASB) Statement No. 45. The City has contributed more than the required ARC to the retiree medical plan and reports the OPEB obligation as an asset on the statement of net assets. 416,728 Net assets of governmental activities $ 234,316,279 The accompanying notes are an integral part of these financial statements. - 20 - City of Moorpark Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended June 30, 2012 Special Revenue Street and Assessment General Traffic Safety Districts REVENUES Taxes $ 11,654,652 $ - $ - Licenses and permits 142,501 - - Fines and forfeitures 265,897 - - Use of money and property 499,936 253,004 84,360 Charges for services 1,210,693 265,170 7,491 Intergovernmental 79,165 - - Maintenance assessments - - 2,090,274 Other revenue 201,266 3,865 43,238 Total revenues 14,054,110 522,039 2,225,363 EXPENDITURES Current: General government 886,262 - - Public safety 6,173,964 - - Public services 1,845,732 230,243 375,297 Parks and recreation 1,551,591 - 3,483,566 Capital Outlay 83,538 307,367 76,658 Debt service: Principal - - - Interest - - - Total expenditures 10,541,087 537,610 3,935,521 Excess (deficiency)of revenues over(under)expenditures 3,513,023 (15,571) (1,710,158) OTHER FINANCING SOURCES (USES) Transfers in 6,533 - 1,395,717 Transfers out (3,520,556) (13,960) - Total other financing sources (uses) (3,514,023) (13,960) 1,395,717 EXTRAORDINARY ITEM Gain(loss)on redevelopment agency dissolution - - - Net change in fund balances (1,000) (29,531) (314,441) Fund balances, beginning of year, as restated 3,611,085 19,334,143 6,353,233 Fund balances (deficit), end of year $ 3,610,085 $ 19,304,612 $ 6,038,792 The accompanying notes are an integral part of these financial statements. - 21 - Special Revenue Los Angeles Low-Mod Redevelopment Redevelopment Area of Parks/Public Income Agency Agency Contribution Facilites Housing Asset Low-Mod Operating $ - $ - $ - $ 384,176 $ 1,594,014 152,436 26,147 124 11,229 55,822 7,807 163,615 - - - - - - 41 981,217 160,243 189,762 124 395,446 2,631,053 - - 4,134 - - 1,298 2,969 - 147,774 1,104,526 - 3,800 - - - 117,660 10,930 - 4,027 1,283,409 - - - 20,000 - 118,958 17,699 4,134 171,801 2,387,935 41,285 172,063 (4,010) 223,645 243,118 (12,700) - - (151,142) (29,620) (12,700) - - (151,142) (29,620) - - 8,318,904 (8,318,904) (6,232,772) 28,585 172,063 8,314,894 (8,246,401) (6,019,274) 11,733,981 745,175 - 8,246,401 6,019,274 $ 11,762,566 $ 917,238 $ 8,314,894 $ - $ - The accompanying notes are an integral part of these financial statements. - 22 - City of Moorpark Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds - Continued Year Ended June 30, 2012 Capital Projects Redevelopment Police Agency Special Facilities Fee Capital Projects Projects REVENUES Taxes $ - $ - $ - Licenses and permits - - - Fines and forfeitures - - - Use of money and property - 13,775 3,800 Charges for services - - - Intergovernmental - - - Maintenance assessments 16,432 - - Other revenue - - - Total revenues 16,432 13,775 3,800 EXPENDITURES Current: General government - - - Public safety - - - Public services - - - Parks and recreation - - - Capital Outlay - 2,200,636 - Debt service: Principal - - - Interest - - - Total expenditures - 2,200,636 - Excess (deficiency)of revenues over(under)expenditures 16,432 (2,186,861) 3,800 OTHER FINANCING SOURCES (USES) Transfers in - - 1,500,523 Transfers out - - - Total other financing sources (uses) - - 1,500,523 EXTRAORDINARY ITEM Gain(loss)on redevelopment agency dissolution - (10,780,770) - Net change in fund balances 16,432 (12,967,631) 1,504,323 Fund balances, beginning of year, as restated (1,886,590) 12,967,631 24,743,410 Fund balances (deficit), end of year $ (1,870,158) $ - $ 26,247,733 The accompanying notes are an integral part of these financial statements. - 23 - Debt Service Redevelopment Non major Total Agency Governmental Governmental Debt Service Funds Funds $ 1,410,874 $ 1,103,459 $ 16,147,175 419,029 561,530 180,529 446,426 16,244 264,535 1,381,412 1,904,678 3,559,454 - 1,548,297 1,627,462 - 8,251 2,114,957 - 115,619 1,345,246 1,427,118 5,544,397 27,183,662 - 890,396 - 293,101 6,467,065 4,623,550 8,331,389 - 5,038,957 - 594,828 4,679,053 580,000 - 580,000 668,825 - 688,825 1,248,825 5,511,479 26,675,685 178,293 32,918 507,977 151,142 1,685,274 4,739,189 (1,011,211) (4,739,189) 151,142 674,063 - (2,539,692) - (19,553,234) (2,210,257) 706,981 (19,045,257) 2,210,257 17,205,894 111,283,894 $ - $ 17,912,875 $ 92,238,637 The accompanying notes are an integral part of these financial statements. - 24 - 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, 2012 Net change in fund balance-total governmental funds $ (19,045,257) 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 their estimated useful lives and reported as depreciation expense.Asset deletions also affect the amounts reported in the statement of activities. This activity is reconciled as follows: Capital outlays and other capital expenditures $ 5,251,114 Depreciation expense (4,396,587) Contributed assets 663,818 Asset disposals (604,876) 913,469 Long-term notes and loans receivable are reported as expenditures when made and as as a revenue when repaid in the governmental funds. However, there is no impact in the statement of activities when these notes and loans are made or repaid. This amount represents the net change in the long term notes and loans receivable. (1,043,914) Revenues that are measurable but not available are not recorded as revenues under the modified accrual basis of accounting. (115,809) Bond proceeds are reported as financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net assets, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of debt principal is an expenditure in the governmental funds, but reduces long-term liabilities in the statement of net assets. Principal payments on debt 580,000 Some 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. Increase in compensated absences $ (44,603) Decrease in OPEB asset (3,499) Decrease in accrued interest payable on bonds 334,413 286,311 Gain in closing of the former redevelopment agency(see Note 15) 19,910,079 Change in net assets of governmental activities $ 1,484,879 The accompanying notes are an integral part of these financial statements. - 25 - City of Moorpark Statement of Fiduciary Net Assets June 30, 2012 Successor Agency Private Purpose Agency Trust Fund Fund ASSETS Cash and investments $ 2,760,385 $ 3,595,018 Cash and investments with fiscal agent 1,901,043 5,485,612 Receivable: Accounts 3,445 27,780 Amortizable deferred charges-asset 412,897 - Land held for resale 11,248,855 - Contruction in progress 12,625,826 - Total assets 28,952,451 $ 9,108,410 LIABILITIES Accounts payable 2,783,004 $ 61,473 General deposits - 3,536,011 Due to other governments 3,370 - Deferred revenue 500 - Bonds payable-due within one year 605,000 - Bonds payable-due in more than one year 26,970,000 - Amortizable deferred charge- liability (265,743) - Due to bond holders - 5,510,926 Total liabilities 30,096,131 $ 9,108,410 NET ASSETS(Deficit) Held in trust for the Successor Agency $ (1,143,680) The accompanying notes are an integral part of these financial statements. - 26 - City of Moorpark Statement of Changes in Fiduciary Net Assets Private Purpose Trust Fund - Successor Agency For the Period from Inception (February 1, 2012) to June 30, 2012 Successor Agency Private-Purpose Trust Fund ADDITIONS RPTTF distribution $ 98,288 Investment earnings 121,290 Other receipts 19,330 Total additions 238,908 DEDUCTIONS Debt service payments - interest 982,454 Amortization of deferred charges 27,700 Other payments 15,589 Total deductions 1,025,743 EXTRAORDINARY ITEM Loss in redevelopment agency dissolution (356,845) Change in net assets (1,143,680) Net assets, beginning (at inception) - Net assets, end of the year $ (1,143,680) The accompanying notes are an integral part of these financial statements. - 27 - City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 NOTE DESCRIPTION PAGE 1 Summary of Significant Accounting Policies 29 2 Cash and Investments 38 3 Notes and Loans Receivable 44 4 Interfund Transactions 47 5 Capital Assets and Depreciation 48 6 Long-Term Liabilities 50 7 Agreements with Various Taxing Agencies 52 8 Retirement Plan 54 9 Other Post Employment Benefits 55 10 Conduit Debt - Revenue Bonds 57 11 Special Assessment Bonds 58 12 Risk Management 59 13 Classifiaction of Net Assets and Fund Balance 61 14 Commitments and Contingencies 65 15 Successor Agency - Fiduciary Private Purpose Trust Fund 66 16 Restatement of Fund Balances 69 - 28 - City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the City of Moorpark (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 (Agency), the Moorpark Public Financing Authority (PFA), and the Industrial Development Authority of the City of Moorpark (IDA). The City was incorporated in July, 1983 as a general law city and operates under a Council/Manager form of government. The Agency 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 Agency in order to provide financial assistance to the City and the Agency by issuing debt and financing the construction of public facilities. The IDA was formed in 1985 pursuant to the California Industrial Development Financing Act (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 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 Agency, 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 Agency are reported as separate funds in the Special Revenue, Debt Service, and Capital Projects Funds. The Agency ceased to exist as of January 31, 2012 (see Note 15). The PFA and IDA were inactive during the fiscal year ended June 30, 2012. -29- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) A) Reporting Entity, (continued) The following specific criteria were used in determining that the Agency, the PFA, and the IDA are "blended" component unit: 1) The members of the City Council also act as the governing body of the Agency, the PFA, and the IDA. 2) The City, the Agency, the PFA, and the IDA are financially interdependent. The City makes loans to the Agency for use on redevelopment projects. Available property tax revenues of the Agency will be used to repay the loans from the City. 3) The Agency, the PFA, and the IDA are managed by employees of the City. The Agency, PFA and IDA did not issue separate financial statements in the current fiscal year. B) 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 Statement 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. C) Description of Funds The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. The following types of funds are in use by the City: Governmental Fund Types General Fund - Used to account for and report all financial resources not accounted for and reported in another fund. Special Revenue Funds - Used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. -30- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) C) Description of Funds, (continued) Debt Service Funds - Used to account for and report financial resources that are restricted, committed, or assigned to service the principal and interest on debt. Capital Projects Funds - Used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. 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. Private Purpose Trust Fund— Used to account for the resources, obligations and activities of the Successor Agency of the Redevelopment Agency of the City of Moorpark (SARA) as directed by the Oversight Board to settle the affairs of the dissolved agency (see Note 15). D) 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 expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating contributions and grants, and 3) capital grants and contributions. Charges for services include revenues from customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Operating contributions and grants include revenues restricted to meeting the requirements of a particular operating function and may include state shared revenues and grants. Capital contributions and grants include revenues restricted to meeting the requirements of a particular capital function and may include grants and developer fees. Taxes and other items not properly included among program revenues are reported instead as general revenues. -31- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D) Basis of Accounting and Measurement Focus, (continued) Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to interfund activities, payables, and receivables. All internal balances in the government-wide financial statements have been eliminated. Governmental Fund Financial Statements Governmental fund financial statements include a Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and aggregated non-major funds. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net assets presented in the Government-wide Financial Statements. The City has presented all major funds that met qualifications of GASB Statement No. 34. In addition, the City has included as major, funds that are significant to the City in light of the circumstances that occurred related to the Agency during the fiscal year ended June 30, 2012. 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 both measurable and available to finance expenditures of the current period. "Measurable" means that the amount of the transaction can be determined, and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Accrued revenues include property taxes received within 60 days after year-end, taxpayer assessed taxes such as sales taxes, and earnings on investments. Grant funds earned but not received are recorded as a receivable, and grant funds received before the revenue recognition criteria have been met are reported as deferred revenues. Expenditures are recorded when the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt, which is recognized when due. The City reports the following major governmental funds: The General Fund is the government's primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. Sources of revenue are property tax, sales tax, franchise and transfer taxes, fines and forfeitures, fees for services and interest. -32- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D) Basis of Accounting and Measurement Focus, (continued) 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. Sources of revenue are traffic fines and forfeitures collected through Ventura County Superior Courts. The Assessment Districts Special Revenue Fund is used to account for funds received by the City for maintenance of community-wide parks, street lighting and landscaping. Sources of revenue are property assessments collected by the Ventura County Tax Collector. The Los Angeles Area of Contribution Special Revenue Fund is used to account for the financial resources for capital projects related to streets and other improvements within the Los Angeles Avenue project area. Sources of revenues are development fees. 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. Sources of revenue are developer fees. The Low and Moderate Income Housing Asset Special Revenue Fund is used to account for the housing assets transferred from the former redevelopment agency and Low and Moderate housing activities of the City. Sources of revenue are from sale of property and repayment of loans. The fund activities are restricted to the same requirements as the former Low and Moderate Income Housing Fund of the Agency. The MRA Low and Moderate Income Housing Special Revenue Fund is used to account for the 20% set aside of the tax increment received by the Agency, which is restricted for use on projects that increase or preserve the supply of low and moderate income housing throughout the City. The fund was closed on January 31, 2012 as part of the dissolution of the Agency (see Note 15). The MRA Operating Special Revenue Fund is used to account for monies received and expended within the project area in accordance with the Redevelopment Plan of the Agency made pursuant to redevelopment laws of the State of California. Sources of revenue are the tax increment collected by the Ventura County Tax Collector, property rents and High Street Theatre ticket sales. The fund was closed on January 31, 2012 as part of the dissolution of the Agency (see Note 15). The Police Facilities Fee Capital Projects Fund is used to account for the funds used to build the new police facility. The source of revenue is a percentage of permit fees issued. The MRA Capital Projects Fund is used to account for the funds used for the Agency's capital improvement projects. The sources of funds are the revenue bond proceeds from the 2001 and 2006 tax allocation bonds. The fund was closed on January 31, 2012 as part of the dissolution of the Agency (see Note 15). The Special Projects Capital Projects Fund is used to account for various City capital improvement projects including major rehabilitation of streets, parks and facilities and other infrastructure. Source of revenue is the General Fund monies in excess of the $3,000,000 maximum unreserved fund balance per City General Fund Reserve Policy, Resolution No. 2008-2725. -33- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D) Basis of Accounting and Measurement Focus, (continued) The MRA Debt Service Fund is used to account for the accumulation of resources and the payment of principal and interest on the Agency's debt and other long-term obligations. Sources of revenue are property tax increment collected by Ventura County. The fund was closed on January 31, 2012 as part of the dissolution of the Agency (see Note 15). Fiduciary Fund Financial Statements Fiduciary Fund Financial Statements include a Statement of Fiduciary Net Assets and a Statement of Changes in Fiduciary Net Assets. The fiduciary funds are 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 fiduciary funds are accounted for using the accrual basis of accounting. The city reports the following Private Purpose Trust Fund: Private Purpose Trust Fund — This fund is used to account for the resources, obligations and activities of the Successor Agency of the Redevelopment Agency of the City of Moorpark (SARA) as directed by the Oversight Board to settle the affairs of the dissolved agency (see Note 15). The city reports the following Agency Fund: The agency fund accounts for developer deposits and assets held for property owners of various assessment and community facilities districts. The agency fund is custodial in nature (assets equal liabilities) and therefore does not involve measurement of results of operations. E) Investments The City has adopted the provisions of 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. F) Property Held for Resale/Development Property held for resale in the Low and Moderate Income Housing Asset Fund and the City Affordable Housing Fund represents land and buildings purchased by the City or by the former Agency and transferred to the City as housing assets. Such property is valued at the lower of cost or estimated net realizable value and has been offset by nonspendable or restricted fund balances to indicate that these assets constitute future projects and are restricted or not available spendable resources. The balance at June 30, 2012 was $8,981,454. -34- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) G) 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. 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 H) 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, 2012, unavailable revenue amounted to $278,320. I) 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. As of June 30, 2012, all bond debt and its corresponding deferred charges have been transferred to the SARA. -35- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) J) 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 administrative leave up to a maximum of 120 hours, depending on position. The amount of maximum hours for the leave accrual is based on the employee classification: regular employee, management, department head or City Manager. 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 MOU. There is no fixed payment schedule for employee compensated absences. K) Property Taxes The duties of assessing and collecting property taxes are performed by the Ventura County (County) Assessor and Tax Collector, respectively. The City receives an allocation of property taxes collected by the County with respect to property located within the City limits equal to 9.1 percent of the one percent State levy. The Agency receives incremental property taxes on property within its project area over the base-assessed valuation at the date the project area was established. Tax levies cover the period from July 1 to June 30 of each year. All tax liens are attached annually on the first day in January preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property, as it exists on that date. Secured property taxes are levied against real property and are due and payable in two equal installments. The first installment is due on November 1 and becomes delinquent if not paid by December 10. The second installment is due on February 1 and becomes delinquent if not paid by April 10. Unsecured personal property taxes are due on July 1 each year. These taxes become delinquent if not paid by August 31. L) 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, 2012, 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. -36- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) L) Claims and Judgments, (continued) The City's self-insurance program is administered through the California Joint Powers Insurance Authority (Authority). The Authority is a public entity risk pool, which is accounted for under the provisions of GASB Statement No. 10. Claim losses recorded in the Authority include both current claims and Incurred but Not Reported claims (IBNR). These deposits are subject to retrospective adjustment. Favorable claims experience results in a refund of deposits from the Authority 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. M) 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. N) Use of Restricted Resources When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources as they are needed. 0) 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 effect 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. This $580,000 difference is due to the principal repayment of outstanding bond debt. -37- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 2) CASH AND INVESTMENTS Cash and investments at June 30, 2012, consisted of the following: City Treasury Deposits Demand Deposits $ 5,124,140 Cash on Hand 1,750 Total City Treasury Deposits 5,125,890 City Treasury Investments Local Agency Investment Fund (LAIF) 3,016,228 Ventura County Pool 50,167,536 U.S. Treasury Notes 2,082,270 U.S.Agency Securities: Federal National MTG Association 13,086,800 Federal Home Loan Bank 6,169,060 Federal Farm Credit Bank 3,079,150 Federal Home Loan MTG Corporation 7,163,720 Total City Treasury Investments 84,764,764 Cash and Investments With Fiscal Agent Money Market 5,693,430 US Treasury Notes 1,111,394 Guaranteed Investment Contracts 584,675 Total Cash and Investments With Fiscal Agent 7,389,499 Total Cash and Investments $ 97,280,153 Cash and Investments are reported in the basic financial statements as follows: Statement of Statement of Fiduciary Net Assets Net Assets Governmental Private Purpose Agency Fund Total Activities Trust Fund Cash and investments $ 83,535,251 $ 2,760,385 $ 3,595,018 $ 89,890,654 Cash and investments with fiscal agent 2,844 1,901,043 5,485,612 7,389,499 Total $ 83,538,095 $ 4,661,428 $ 9,080,630 $ 97,280,153 -38- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 2) CASH AND INVESTMENTS, (continued) 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 types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by 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, 2012, the debt agreements of the City pertaining to the Agency were transferred to the Successor Agency for the former 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 None None Medium-Term Notes 5 years 30% None Money Market Mutual Funds N/A 20% None County Pooled Investment Funds N/A None None LAIF N/A None $50,000,000 *Excluding amounts held by bond trustees that are not subject to California Government Code restrictions. -39- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 2) CASH AND INVESTMENTS, (continued) A) Authorized Investments, (continued) 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 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. -40- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 2) CASH AND INVESTMENTS, (continued) B) Interest Rate Risk, (continued) 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. Remaining maturity(in years) Investment type Total Less than 1 1 to 2 2 to 3 3 to 4 >4 LAIF $ 3,016,228 $ 3,016,228 $ - $ - $ - $ - Ventura County Pool 50,167,536 50,167,536 - - - - U.S.Treasury Notes 2,082,270 - 1,042,660 1,039,610 - U.S.Agency Securities: Federal National MTG Assn. 13,086,800 - - - 5,012,680 8,074,120 Federal Home Loan Bank 6,169,060 - - 2,055,190 3,102,170 1,011,700 Federal Farm Credit Bank 3,079,150 - - 3,079,150 - - Federal National MTG Corp. 7,163,720 - - 1,102,370 2,043,050 4,018,300 Held by bond trustee: Money market funds 5,693,430 5,693,430 - - - - U.S.Treasury Notes 1,111,394 1,111,394 - - - - Guaranteed Contracts 584,675 - - - - 584,675 $ 92,154,263 $59,988,588 $ - $ 7,279,370 $ 11,197,510 $13,688,795 C) Credit Risk and Concentration of Credit Risk At June 30, 2012, the carrying amount of the City's deposits was $5,125,140. Bank balances, before reconciling items, were $5,750,656 at June 30, 2012, of which $5,750,656 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. -41- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 2) CASH AND INVESTMENTS, (continued) C) Credit Risk and Concentration of Credit Risk, (continued) 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 for non interest bearing accounts and up to $250,000 for interest bearing accounts by the Federal Deposit Insurance Corporation. The City, however, does not normally waive the collateralization requirements. Investments Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of 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: Investment type Carrying Credit Percentage of Value Rating Investments LAIF $ 3,016,228 Not Rated 3.3% Ventura County Pool 50,167,536 Not Rated 54.4% U.S.Treasury Notes 2,082,270 AAA 2.3% U.S.Agency Securities: Federal National MTG Assn. 13,086,800 AAA 14.2% Federal Home Loan Bank 6,169,060 AAA 6.7% Federal Farm Credit Bank 3,079,150 AAA 3.3% Federal National MTG Corp. 7,163,720 AAA 7.8% Held by bond trustee: Money market funds 5,693,430 AAA 6.2% U.S.Treasury Notes 1,111,394 AAA 1.2% Guaranteed Contracts 584,675 Not Rated 0.6% $ 92,154,263 100.0% -42- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 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 $50,000,000 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 secures investment in LAIF. At June 30, 2012, accounts were maintained in the name of the City for $3,016,228. At June 30, 2012, the fair value of the State of California Pooled Money Investment Account (PMIA) including accrued interest was $60,612,199,285. The PMIA 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 reviewed by both the PMIA and LAIF Advisory Boards 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$50,167,536 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. -43- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 3) NOTES AND LOANS RECEIVABLE Notes and loans receivable activity for the year ended June 30, 2012, is as follows: Beginning Ending Balance Increases Decreases Balance Notes receivable Mission Bell $ 900,000 $ - $ (900,000) $ - Deferred property assessments 250,249 - - 250,249 Moorpark 20, LP 1,176,500 - - 1,176,500 Moorpark 20, LP 600,000 - - 600,000 Total notes receivable 2,926,749 - (900,000) 2,026,749 Loans receivable Rehabilitation 31,384 - - 31,384 First-time home buyer assistance 171,980 - (96,500) 75,480 CalHome 200,130 (47,414) 152,716 Mountain recreation&conservation authority 6,500 - - 6,500 409,994 - (143,914) 266,080 Governmental activities capital assets,net $ 3,336,743 $ - $ (1,043,914) $ 2,292,829 A) 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 3% to a rate of 6% per annum from August 29, 1995 until August 29, 2029. Prior to 2004, one note was paid off. 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. In early 2011, a notice of default was issued by the senior lender for the property. There was a possibility that the $1,704,786 note could be foreclosed out. Therefore, on March 16, 2011, the Agency assigned note no. 7 to the City in partial satisfaction of the $5 million annual operating loan between the City and the Agency. If and to the extent that any moneys are recovered from the Mission Bell note, those moneys will be credited toward the outstanding balance owed pursuant to the City/Agency loan agreement. Subsequent to June 30, 2011, the City and Mission Bell Partners entered into a settlement agreement whereby Mission Bell Partners would give $900,000 to the City in exchange for the total discharge of note no. 7. This agreement was consummated in October 2011. As a result the loan was partially written off to reflect the $900,000 settlement amount at June 30, 2011. The loan was paid in full in the 2012 fiscal year and the balance eliminated as of June 30, 2012. -44- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 3) NOTES AND LOANS RECEIVABLE, (continued) B) Deferred Property Assessments 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, 2012, the principal balance outstanding was $250,249. C) Moorpark 20, LP Promissory Note On October 29, 2010, the Agency signed the Disposition and Development Agreement (DDA) with the Area Housing Authority of the County of Ventura (AHA) and Moorpark 20, Limited Partnership (M20LP), consisting of AHA and Santa Barbara Housing Assistance Corporation. The DDA provides for the construction of a 20-unit affordable housing project (Project) on Agency-owned property located at 396, 406 and 496 Charles Street (Site). During the tax credit application, the sale price of Site was determined to be $1,176,500 to show more local funds into the Project. On the same date, the Agency executed a $1,176,500 loan agreement with M20LP to purchase the Site from the Agency. The loan will accrue interest at the rate of 2.5% per annum and have a term of 55 years. One annual payment will be made to the Agency by M20LP from residual receipts after the $600,000 has been paid off. This loan is subordinate in right of payment to First Mortgage Note held by Bank of America, N.A. and is secured by Deed of Trust and Security Agreement. On November 2, 2010 the Agency entered into a $600,000 loan agreement with M20LP to complete the construction of the Project. As of June 30, 2012, M20LP has drawn down the entire amount. The term of the loan is 30 years with a fixed interest rate of 2.5%. One annual payment will be made to the Agency by M20LP equal to 75% of available residual receipts. This note is subordinate in right of payment to the First Mortgage Loan payable to Bank of America, N.A. and is secured by Deed of Trust and Security Agreement. D) Rehabilitation Loans The Agency operates a rehabilitation loan program for the renovation of low and moderate income housing. The total balance outstanding at June 30, 2012, was $31,384. E) First-Time Homeowner Assistance The City provides down payment assistance loans to first-time homeowners. The total balance outstanding at June 30, 2012 was $75,480. 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, which are recorded to secure these Notes. The Notes become payable only in the event of a default of any provision of this program. -45- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 3) NOTES AND LOANS RECEIVABLE, (continued) F) CalHome Mobile-home Rehabilitation Loans The total balance of CalHome loans for repairs to mobile-homes in Villa del Arroyo at June 30, 2012 was $152,716. 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; to date $169,833 has been received and $151,887 has been forgiven. Funds received are deposited into a City Trust Fund to be used for eligible home ownership-related activities. G) Mountains Recreation and Conservation Authority (MRCA) The City advanced $6,500 to MRCA to conduct an updated appraisal for approximately 3,805 acres in and adjacent to the Moorpark Area of Interest near Moorpark College for review by the State of California Department of General Services. These funds are to be repaid without interest to the City by June 30, 2012, or within sixty days of the State of California's reauthorization of MRCA's Proposition 84 Project Planning and Design grant from the Santa Monica Mountains Conservancy, whichever comes first. The total balance outstanding at June 30, 2012 was $6,500. The City is exploring options for repayment; including exchange of services to manage the conservation of an 80-acres City-owned open space property located outside the City limits along Tierra Rejada Road. -46- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 4) INTERFUND TRANSACTIONS Due to/Due from Due to/due from other funds for the year ending June 30, 2012, consisted of the following: Receivable Fund Payable fund Amount General Fund Non Major Funds $ 13,513 Special Revenues-Los Angeles A.O.0 Non Major Funds 177,006 Capital Projects-Special Projects Special Revenues-Parks/Public Facilities a 1,000,000 Non-Major Funds Special Revenues-Police Facilities Fee b 1,870,158 $ 3,060,677 a. The Special Projects Fund has advanced to the Parks/Public Facilities Fund $1,000,000 to construct a new Skate Park and improvement of the Poindexter Park. b. The Endowment Fund has advanced to the Police Facilities Fee Fund $1,870,158 to fund capital improvements. Transfers Interfund transfers for the year ended June 30, 2012 consisted of the following: Interfund Transfers Fund receiving transfers Fund making transfers Amount General Fund Non Major funds (1) $ 6,533 Assessment Districts General Fund (2) 1,130,444 Non Major funds (2) 265,273 1,395,717 Special Projects General Fund (4) 1,500,523 Redevelopment Agency- Debt Service Redevelopment Agency-Low Mod (3) 151,142 Non Major funds General Fund (1) 889,589 Street and Traffic Safety (1) 13,960 Los Angeles Area of Contribution (1) 12,700 Redevelopment Agency-Operating (1) 29,620 Non Major funds (1) 739,405 1,685,274 Total governmental funds $ 4,739,189 -47- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 4) INTERFUND TRANSACTIONS, (continued) (1) = Transfers made to reimburse expenditures/expenses. (2) = Transfers made to provide funding for operations. (3) = Transfers made to pay debt service. (4) = Transfers made to adjust fund balance to minimum requirement. 5) CAPITAL ASSETS AND DEPRECIATION In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the Government-wide Statement of Net Assets. The City elected to use the basic approach as defined by GASB Statement No. 34 for all infrastructures reporting, whereby depreciation expense and accumulated depreciation have been recorded. The following table presents the capital assets activity for the year ended June 30, 2012. Beginning Ending Balance Additions Deletions Balance Governmental activities: Capital assets, not being depreciated: Land $ 38,857,043 $ 663,818 $ - $ 39,520,861 Construction in progress 12,401,812 4,556,611 (10,293,398) 6,665,025 Total capital assets not being depreciated 51,258,855 5,220,429 (10,293,398) 46,185,886 Capital assets, being depreciated: Buildings and improvements 36,384,166 2,381,204 - 38,765,370 Machinery and equipment 6,151,883 630,620 (466,436) 6,316,067 Infrastructure Roadway system 94,273,476 355,825 (17,967) 94,611,334 Storm drain system 2,933,748 95,884 - 3,029,632 Parks system 251,434 - - 251,434 Total capital assets being depreciated 139,994,707 3,463,533 (484,403) 142,973,837 Less accumulated depreciation/amortization for: Buildings and improvements (7,135,406) (1,700,697) - (8,836,103) Machinery and equipment (3,264,228) (542,972) 445,314 (3,361,886) Infrastructure Roadway system (34,713,360) (2,116,154) - (36,829,514) Storm drain system (236,799) (31,735) - (268,534) Parks system (62,727) (5,029) - (67,756) Total accumulated depreciation (45,412,520) (4,396,587) 445,314 (49,363,793) Total capital assets being depreciated net 94,582,187 (933,054) (39,089) 93,610,044 Governmental activities capital assets, net $ 145,841,042 $ 4,287,375 $ (10,332,487) $ 139,795,930 -48- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 5) CAPITAL ASSETS AND DEPRECIATION, (continued) Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 685,637 Public safety 242,266 Public services, including general infrastructure 2,803,433 Parks and recreation 665,251 Total depreciation expense-governmental activities $ 4,396,587 Certain deletions in the capital assets activity schedule shown above could be the result of: reclassifications of assets into a different class of asset, disposal of the assets, and/or transfer of the assets to another government or governmental agency. Such case is of a portion of the Construction in progress transferred to the SARA(see Note 15) on February 1, 2012. If the asset transferred or disposed of is not fully depreciated at the time of the transfer or disposal, these deletions in the asset classes may not be accompanied by a like decrease in the accumulated depreciation for the same asset class. -49- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 6) LONG-TERM LIABILITIES Long-term liability activities for the year ended June 30, 2012, are as follows: July 01,2011 February 01,2012 June 30,2012 Beginning Transferred to Ending Due within Balance Increases Decreases Successor Agency Balance one year Governmental activities: Bonds payable: 1999 Tax allocation Bonds $ 4,995,000 $ - $ (525,000) $ (4,470,000) $ - $ 2001 Tax allocation bonds 11,505,000 - (15,000) (11,490,000) - 2006 Tax allocation bonds 11,655,000 - (40,000) (11,615,000) - Subtotal bonds payable 28,155,000 - (580,000) (27,575,000) - Plus/(less)deferred amounts: For issuance discount (276,590) - - 276,590 - Total bonds payable 27,878,410 - (580,000) (27,298,410) - Compensated absences 661,562 642,806 (598,203) - 706,165 353,083 Governmental activities long-term liabilities $ 28,539,972 $ 642,806 $ (1,178,203) $ (27,298,410) * $ 706,165 $ 353,083 *Agrees to beginning balance in Note 15:Schedule of changes in long-term liabilities. A) 1999 Tax Allocation Bonds In 1999, the Agency issued $9,860,000 aggregated principal amount of Moorpark Redevelopment Project 1999 Tax Allocation Refunding Bonds (1999 Bonds). The purpose of the 1999 Bonds was to advance refund the Agency's previously issued $10,000,000 Moorpark Redevelopment Project, 1993 Tax Allocation Bonds (1993 Bonds). The purpose of the 1993 Bonds was to finance a portion of the costs of implementing the Redevelopment Plan, including low and moderate-income housing projects. The 1999 Bonds bear interest at rates ranging from 3.05 percent to 4.875 percent per annum, payable semi-annually on April 1 and October 1 of each year, commencing on October 1, 1999, and are subject to mandatory sinking fund redemption commencing on October 1, 2009, and on each October 1 thereafter. The Bonds are payable from and secured by the tax revenues to be derived from the project area. The 1999 Bonds are secured by all property tax increment revenue, which is deposited in the Redevelopment Agency 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. -50- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 6) LONG-TERM LIABILITIES, (continued) A) 1999 Tax Allocation Bonds, (continued) The Agency is in compliance with the covenants contained in debt indenture, which require the establishment of certain specific accounts for the 1999 Bonds. The outstanding balance of the bonds was transferred to the Successor Agency on February 1, 2012 as part of the Moorpark Redevelopment Agency dissolution in accordance with ABX1 26 and AB 1484. B) 2001 Tax Allocation Bonds In December 2001, the Agency issued $11,625,000 of Tax Allocation Parity Bonds (2001 Bonds). The proceeds of the 2001 Bonds will be used to fund redevelopment activities within the Moorpark Redevelopment Project area. Interest on the 2001 Bonds is payable semi- annually on April 1 and October 1, commencing April 1, 2002, at rates ranging from 2.85 percent to 5.13 percent per annum. The 2001 Bonds maturing October 2031, are subject to mandatory sinking funds redemption in the amount of the principal and accrued interest. The 2001 Bonds are payable from and secured by the tax revenues to be derived from the project area. The 2001 Bonds are secured by all property tax increment revenue, which are deposited in the Redevelopment Agency 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 2001 Bonds. In addition, the bond resolutions require retention of funds held by the fiscal agent prior to use for other than debt service. The Agency is in compliance with the covenants contained in debt indentures, which require the establishment of certain specific accounts for the 2001 Bonds. The outstanding balance of the bonds was transferred to the Successor Agency on February 1, 2012 as part of the Moorpark Redevelopment Agency dissolution in accordance with AB x1 26 and AB 1484. C) 2006 Tax Allocation Bonds In 2006, the Agency issued an $11,695,000 aggregated principal amount of Moorpark Redevelopment Project 2006 Tax Allocation Bonds (2006 Bonds). The purpose of the 2006 Bonds was to finance redevelopment activities related to the Moorpark Redevelopment Project Area. The 2006 Bonds bear interest at rates ranging from 3.625 percent to 4.375 percent 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 2006 Bonds are payable from and secured by the tax revenues to be derived from the project area. The 2006 Bonds are secured by all property tax increment revenue, which is recorded in the Redevelopment Agency 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 2006 Bonds. The Agency is in compliance with the covenants contained in the debt indenture, which require the establishment of certain specific accounts for the 2006 Bonds. The outstanding balance of the bonds was transferred to the Successor Agency on February 1, 2012 as part of the Moorpark Redevelopment Agency dissolution in accordance with AB x1 26 and AB 1484. -51- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 6) LONG-TERM LIABILITIES, (continued) D) Employee Compensated Absences The long-term liability at June 30, 2012 is $706,165 for employee compensated absences. The General Fund is primarily expected to liquidate this liability. 7) AGREEMENTS WITH VARIOUS TAXING AGENCIES Per Assembly Bill x1 26 Dissolution of Redevelopment Agencies effective February 1, 2012, the County of Ventura Auditor-Controller (Auditor) has been designated as the administrator of the newly establish Redevelopment Property Tax Trust Fund of the former redevelopment agency. Increment property tax revenues that would have been allocated to the Agency will be deposited into this fund and monies in trust will be used to pay for the Auditor's administrative costs, enforceable obligations including passthrough agreements with various taxing agencies and Successor Agency administrative allowance. The same legislation stipulates that the Auditor will be responsible for calculation and distribution of increment property tax due to the taxing agencies. The Agency has entered into four (4) 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 provides for the Agency to retain 100 percent of the County Taxing Entities share (55.82 percent) of annual tax increment revenues up to $1,750,000. For annual tax increment revenue in excess of$1,750,000, the Agency shall distribute 55.82 percent of such revenues to the County on behalf of the County Taxing Entities. The County Taxing Entities have agreed to defer payments in the initial years of the Redevelopment Plan, and consequently, the parties agree that the County Taxing Entities may receive payments in any single fiscal year in excess of the amount of tax revenues the County Taxing Entities would otherwise be entitled to, but for the adoption of the Redevelopment Plan. With respect to the first paragraph, 4.2 percent of the County Taxing Entities share is allocated to the County Library District (County Free Library System). The City has withdrawn from the County Free Library System and now operates the Moorpark Library. Pursuant to the Memorandum of Understanding governing the County Free Library System, upon withdrawal, a city is entitled to all property taxes allocated to library purposes from within the corporate boundaries of such city. The County has agreed that the City is entitled to the share of annual tax increment previously allocated to the County Library District under the first agreement. The second agreement is with the Moorpark Unified School District (MUSD), and states that the MUSD 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 MUSD's share (33.41 percent) of tax increment revenues generated by an annual 2 percent increase in assessed valuation, and beginning in fiscal year 1995/96, 14 percent of the MUSD's share of annual tax increment revenue. -52- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 7) AGREEMENTS WITH VARIOUS TAXING AGENCIES, (continued) Per the agreement between the MUSD and the Agency, the distributions to the MUSD 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 MUSD overhead or salary/benefits for regular MUSD employees. The Agency may pre-approve other expenditures that are submitted in writing by the MUSD. The third agreement is with the Ventura County Community College District (VCCCD), and states that the VCCCD should 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 VCCCD's share (5.81 percent) of tax increment revenues generated by an annual 2 percent increase in assessed valuation, and beginning in fiscal year 1993/94, 14 percent of the VCCCD's share of annual tax increment revenue. An agreement dated May 1, 2008, between the City and the VCCCD redirects the VCCCD's tax increment allocation. The Agency shall transfer to the City the VCCCD's tax increment allocations, up to One Million Dollars ($1,000,000), beginning with fiscal year 2006/07 and for every fiscal year thereafter through and including the 2024/25 fiscal year for the purpose of constructing certain public improvements near Moorpark College. The fourth agreement is with the Ventura County Superintendent of Schools Office (Superintendent), and states that the Superintendent shall receive its share (2.49 percent) of tax increment revenues generated by an annual 2 percent increase in assessed valuation. -53- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 8) RETIREMENT PLAN A) Plan Description The City contributes to CaIPERS, a cost-sharing multiple-employer public employee defined benefit pension plan. CaIPERS provides retirement and disability benefits, annual cost-of- living adjustments, and death benefits to plan members and beneficiaries. CaIPERS 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 CaIPERS' 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 percent of their covered salary. The City 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 2011/12 was 12.192 percent. The 12.192 percent is comprised of 9.539 percent for the cost-sharing pool and 2.653 percent for the payment on the City's side fund. The City paid off the side fund in February 2011. Therefore, the annual required contribution is only the 9.539 percent of the cost sharing pool. The contribution requirements for plan members are established by State statute and the employer contribution rate is established and may be amended by CaIPERS. The following represents the required contributions for the past three fiscal years: Fiscal Year Required Percent Contributions Contributed 2009-10 $ 566,161 100.00% 2010-11 504,158 100.00% 2011-12 488,328 100.00% -54- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 9) OTHER POST EMPLOYMENT BENEFITS Plan Description The City's defined benefit post-employment healthcare plan, City of Moorpark Retiree Healthcare Plan, (MRHP), provides medical benefits to eligible retired City employees and spouses. MRHP is part of the Public Agency portion of the California Employers' Retiree Benefit Trust Fund (CERBT), an agent multiple-employer plan administered by CaIPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements is established by State statute within the Public Employees' Retirement Law. MRHP selects optional benefit provisions from the benefit menu by contract with CaIPERS and adopts those benefits through City resolution. CaIPERS issues a Comprehensive Annual Financial Report (CAFR). The CAFR is issued in aggregate and includes the sum of all CaIPERS plans. Copies of the CaIPERS CAFR may be obtained from the CaIPERS Executive Office, 400 P Street, Sacramento, California 95814. Funding Policy The contribution requirements of plan members and the City are established and may be amended by the Council. The City contributes the Public Employees' Medical and Hospital Care Act (PEMHCA) minimum. The City is required to contribute the annual required contribution of the employer(ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The current ARC rate is 1.2% of the annual covered payroll. For 2012, the City's annual OPEB cost (expense) was $44,215 for MRHP. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation (asset) for 2012 and the two preceding years were as follows: THREE-YEAR TREND INFORMATION FOR CERBT Percentage of Fiscal Annual OPEB OPEB Cost Net OPEB Year Cost (AOC) Contributed Obligation (Asset) 6/30/12 $ 44,215 92% $ (416,728) 6/30/11 40,122 100% (420,227) 6/30/10 54,000 100% (341,000) -55- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 9) OTHER POST EMPLOYMENT BENEFITS, (continued) Annual OPEB Cost and Net OPEB Obligation (Asset) Calculation: The OPEB Cost and Net OPEB Obligation (Asset) for the fiscal year 2012 was as follows: June 30, 2012 Annual required contribution $ 37,000 Add: Interest on net OPEB obligation (32,568) Less: Adjustment to annual required contribution 39,783 Annual OPEB cost (expense) 44,215 Contributions made (40,716) Increase in net OPEB obligation 3,499 Net OPEB asset- beginning of year (420,227) Net OPEB asset-end of year $ (416,728) Funded Status and Funding Progress The funded status of the plan as of June 30, 2010, according to the most recent actuarial valuation was as follows: Actuarial Accrued Liability (AAL) $ 590,000 Actuarial Value of Plan Assets $ 487,000 Unfunded Actuarial Accrued Liability (UAAL) $ 103,000 Funded Ratio (Actuarial Value of Plan Assets/AAL) 82.5% Covered Payroll (Active Plan Members) $ 5,066,000 UAAL as a Percentage of Covered Payroll 2.0% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of the plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations -56- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 9) OTHER POST EMPLOYMENT BENEFITS, (continued) The following is a summary of the actuarial assumptions and methods: Valuation Date June 30, 2010 Actuarial Cost Method Entry Age Normal Cost Method Amortization Method Level Percent of Payroll Remaining Amortization Period 15 Years fixed(closed) period for 06/30/2010 Unfunded Liability Actuarial Assumptions: Investment Rate of Retum 7.75% Pre-funded Aggregate Increases—3.25% Projected Salary Increase Merit Increases —CaIPERS 1997-2007 Experience Study 4.5% Health Care Trend Rate 4.50% General Inflation 3.00% 10) 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 nonprofit 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. On May 31, 2012 these taxable subordinate bonds were refunded for $13,085,000 and $375,000, respectively. The total bonds outstanding at June 30, 2012, totaled $13,225,000. 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, 2012, totaled $14,239,596. Each of the bond programs described above do not constitute an indebtedness of the City, and there is neither a legal nor a moral obligation on the part of the City to make payments on such bonds from any source other than the revenues and assets pledged therefore. The programs are completely administered by the Trustees without any involvement by the City. Accordingly, these programs and the bonds issued thereunder have been excluded from the accompanying basic financial statements. -57- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 11) SPECIAL ASSESSMENT BONDS A) Assessment District 92-1 (Mission Bell Plaza) 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 $1,330,000 at June 30, 2012. B) Community Facilities District No. 97-1 (Carlsberg) On July 1, 1997, the City issued bonds to finance the acquisition and construction of public improvements within the City of Moorpark Community Facilities District No. 97-1. These bonds, totaling $7,645,000, were issued pursuant to the Mello-Roos Community Facilities Act of 1982. The bonds mature on September 1, 2027 with interest payable at rates ranging from 4.4 percent to 6 percent per annum on March 1, and September 1 of each year commencing March 1, 1998. On February 1, 2012 the City issued Community Facilities District No. 97-1 (Carlsberg) Special Tax Refunding Bonds-Series 2012 for $5,720,000 to refund the original 1997 bond issue. The Special Tax Refunding Bonds-Series 2012 bonds mature on September 1, 2027 with interest payable at rates ranging from 2.0 percent to 4.5 percent per annum on March 1, and September 1, of each year commencing September 1, 2012. 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 of the Special Tax Refunding Bonds- Series 2012 is $5,720,000 at June 30, 2012. C) Community Facilities District No. 2004-1 (Moorpark Highlands) During fiscal year 2006/07, 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 percent to 5.3 percent 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 $23,365,000 at June 30, 2012. -58- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 12) RISK MANAGEMENT A) Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of 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 an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. The City does not have an equity interest in the Authority: therefore, no amount has been reported in the Statement of Net Assets. However, the City does have an ongoing financial interest because the City is able to influence the operations of the Authority so that the Authority uses its resources on behalf of the City. Also, an ongoing financial responsibility exists because the Authority is dependent on continued funding from the City. The condensed financial information of the Authority has not been reproduced in this report, but is available from the Authority. B) Self Insurance Programs of the Authority Beginning coverage period 2010/11, the Authority implemented a new funding and cost allocation formula, from retrospective funding model to a prospective funding model and increased the funding estimate goal to 75 percent confidence level. This change aims to improve the Authority's long-term financial viability by sufficiently pre-funding each period to cover expected claims and expenditures. Under the new formula, the General Liability and Workers' Compensation annual contributions are separately calculated for public safety and non-public safety categories based on the member's exposure and experience factors. Exposure factor is determined by the annual reported payroll, with the minimum imputed payroll of $420,000 for the liability formula. Experience factors are defined by loss layer weighting ratio equivalent to 50 percent on the agency's first layer losses ($0 to $30,000 for liability and $0 to $50,000 for worker's compensation) and 50 percent on its second layer of losses ($30,000 to $750,000 for liability and $50,000 to $100,000 for workers' compensation). A credibility weighting component, ranging from 80 percent to 20 percent, is applied to determine the portion of the member's cost attributable to its own loss experience relative to its payroll size. The annual contribution is subject to 0 percent-35 percent volatility band, so that no member will pay more than 35 percent or pay less than prior year amount. General Liability: Costs of 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: Members retain the first $50,000 of each claim. Losses up to $2,000,000 are pooled by members and excess coverage is purchased by statutory limits. Administrative expenses are paid from the Authority's investment earnings. -59- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 12) RISK MANAGEMENT, (continued) B) Self Insurance Programs of the Authority, (continued) The Authority owes the City $181,621 from the Workers' Compensation pool and the City received 25 percent or$45,405 refund as a reduction on the 2010/11 annual contribution. C) Purchased Insurance The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City property is currently insured according to a schedule of covered property submitted by the City to the Authority. Total all-risk property insurance coverage is $37,087,004. 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 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 property currently has earthquake protection in the amount of$33,254,981. There is a deductible of 5 percent of the value with a minimum deduction of$100,000. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. E) Adequacy of Protection During the past three fiscal (claims) years, none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. F) Claims and Judgments The City accounts for uninsured, material claims and judgments and associated legal and administrative costs when it is probable that the liability claim has been incurred and the amount of the loss can be reasonably estimated. Included therein are claims incurred but not reported, which consists of (a) known loss events expected to be presented as claims later, (b) unknown loss events that are expected to become claims, and (c) expected future development on claims already reported. This is based upon historical actual results that have established a reliable pattern supplemented by specific information about current matters. Small dollar claims and judgments are recorded as expenditures when paid. -60- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 13) CLASSIFICATION OF NET ASSETS AND FUND BALANCE A) Net Assets In the Government-wide financial statements, net assets are classified in the following categories: Invested in Capital Assets, net of related debt - 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, contributors, 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. B) Fund Balance The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions as of June 30, 2011. Fund balances in governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The City considers restricted fund balance to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts. A City Council Ordinance or Resolution is the formal action that would effectively commit fund balances for a particular purpose. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used: Nonspendable Fund Balance - Amounts that cannot be spent either because they are in nonspendable form or are required to be maintained intact. Restricted Fund Balance - Amounts that are constrained to specific purposes by state or federal laws, or externally imposed conditions by grantors or creditors. -61- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 13) CLASSIFICATION OF NET ASSETS AND FUND BALANCE, (continued) B) Fund Balance, (continued) Committed Fund Balance - Amounts that may be specified by the City Council by ordinance or resolution to formally commit part of the City's fund balances or future revenues for a specific purpose(s) or program. To change or repeal any such commitment will require an additional formal City Council's action utilizing the same type of action that was originally used. Assigned Fund Balance - Amounts that are constrained by the Council's intent to use specified financial resources for specific purposes, but are neither restricted nor committed. It is the policy of the City Council that assignment of fund balances must be approved by the Council prior to the fiscal year end. Unassigned Fund Balance - These are either residual positive net resources of fund balance in excess of what can properly be classified in one of the other four categories, or negative balances. The City's governmental fund balances at June 30, 2012, are presented below: Street and Assessment General Traffic Safety Districts Nonspendable: Prepaid items $ 43,122 $ - $ 7,900 Due from Other Funds and Governments - - - Property held for resale 611,085 - - Restricted for: Public Services - 19,304,612 6,030,892 Recreation services - - - Public Safety - - - Low and Moderate Income Housing - - - Committed to: Library Services - - - Assigned to: Capital Projects - - - Unassigned 2,955,878 - - Total fund balances $ 3,610,085 $ 19,304,612 $ 6,038,792 -62- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 13) CLASSIFICATION OF NET ASSETS AND FUND BALANCE, (continued) B) Fund Balance, (continued) Los Angeles Low-Mod Area of Parks/Public Income Contribution Facilites Housing Asset Nonspendable Prepaid items - Due from Other Funds and Governments 177,006 - - Property held for resale - - - Restricted for: Public Services 11,585,560 - - Rercreation services - 917,238 - Public Safety - - - Low and Moderate Income Housing - - 8,314,894 Committed to: Library Services - - - Assigned to: Capital Projects - - - Unassigned - - - Total fund balances $ 11,762,566 $ 917,238 $ 8,314,894 -63- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 13) CLASSIFICATION OF NET ASSETS AND FUND BALANCE, (continued) B) Fund Balance, (continued) Nonmajor Total Police Special Governmental Governmental Facilities Fee Projects Funds Funds Nonspendable: Prepaid items $ - $ - $ - $ 51,022 Due from Other Funds and Governments - 1,000,000 1,870,158 3,047,164 Property held for resale - - - 611,085 Restricted for: Public Services - - 2,389,485 39,310,549 Rercreation services - - 1,752,549 2,669,787 Public Safety - - 1,637,368 1,637,368 Low and Moderate Income Housing - - 4,012,497 12,327,391 Committed to: Library Services - - 783,281 783,281 Assigned to: Capital Projects - 25,247,733 5,644,543 30,892,276 Unassigned (1,870,158) - (177,006) 908,714 Total fund balances $ (1,870,158) $ 26,247,733 $ 17,912,875 $ 92,238,637 Deficit Fund Balances The following major governmental fund has a deficit at June 30, 2012: Police Facilities Fees Capital Projects Fund - $ (1,870,158) The following non-major governmental fund has a deficit at June 30, 2012: Tierra Rejada/Spring Road A.O.C. Special Revenue Fund - $ (177,006) Management expects these deficits to be eliminated through future revenues. -64- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 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. The estimated amount of construction contract obligations at year-end is $4,217,665. This amount represents all outstanding encumbrances relating to capital projects excluding those funded by the former Redevelopment Agency or the Successor Agency. 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. C) Successor Agency Deductions (expenses) incurred by the Successor Agency of the former Moorpark Redevelopment Agency for the year ended June 30, 2012 (and subsequent years in which the Successor Agency is in operation) are subject to review by various State agencies and the County in which the Successor Agency resides. If any expenses incurred by the Successor Agency are disallowed by the State agencies or County, the City, acting as the Successor Agency could be liable for the repayment of the disallowed costs from either its own funds or by the State withholding remittances normally paid to the City. The amount, if any, of expenses that may be disallowed by the State agencies or County cannot be determined at this time, although the Successor Agency expects such amounts, if any, to be immaterial. Furthermore, as of June 30, 2012, the Successor Agency of the former Moorpark Redevelopment Agency is subject to several reviews and agreed-upon procedures to be performed on the appropriateness of the dissolution and transfer of assets and liabilities to the Successor Agency as well as a review on any transfers made to the City, County, and/or private parties for the period from January 1, 2011 through June 30, 2012. The result of these reviews and agreed upon procedures could impact the City and its finances if an unfavorable outcome results from them. The amount, if any, for any possible contingency, cannot be determined at this time to be material or not. -65- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 15) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26, ("the bill") that provides for the dissolution of all redevelopment agencies in the State of California. Most of California cities had established a redevelopment agency that was included in the reporting entity of the city as a blended component unit (since the city council, in many cases, also served as the governing board for those agencies). The Bill provided that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the "Successor Agency" to administer assets, pay and adhere to the provisions of enforceable obligations, and to expeditiously settle the affairs of the dissolved redevelopment agency. If the city declines to accept the role of Successor Agency, other local agencies may elect to perform this role. If no local agency accepts the role of Successor Agency, the Governor is empowered by the Bill to establish a local "designated local authority" to perform this role. On January 4, 2012, the City Council met and created the Successor Agency of the former Redevelopment Agency of the City of Moorpark in accordance with the Bill as part of the City of Moorpark resolution number 2012- 3079. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets could only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable, contractual commitments). In future fiscal years, successor agencies will only be allocated tax increment revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full. The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other private and public bodies that occurred after January 1, 2011. If the body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011), all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity on February 1, 2012. Prior to that date, the final seven months of the activity of the redevelopment agency continued to be reported in the governmental funds of the City of Moorpark. After the date of dissolution, January 31, 2012, the assets, liabilities, and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City of Moorpark. The private-purpose trust fund keeps its activities under the normal accrual method of accounting. The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012 (effectively the same date as January 31, 2012) from governmental funds to fiduciary funds was reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund financial statements. The receipt of these assets and liabilities was reported in the private- purpose trust fund as an extraordinary gain (or loss) in the fiduciary funds financial statements. -66- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 15) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, (continued) As part of the FY 2012-13 state budget package, on June 27, 2012, the State of California Legislature passed, and the Governor signed, Assembly Bill 1484, the primary purpose of which is to make technical and substantive amendments to the Dissolution Act based on experience to- date at the state and local level in implementing that act. As a budget "trailer bill," AB 1484 took immediate effect upon signature by the Governor. In accordance with AB 1484 and in compliance with the California Health & Safety Code, the City of Moorpark elected to be Housing Successor to the housing activities and functions of the former Redevelopment Agency of the City of Moorpark. Accordingly, all housing assets, as define by the Health and safety Code Section 34176 (e), were transfer to the City of Moorpark in a specially created new fund shown as a major fund in 2012 and named "Successor Low-Mod Housing Asset" fund in the governmental funds financial statements. Because of the different measurement focus of the governmental funds (current financial resources measurement focus) and the measurement focus of the trust funds (economic resources measurement focus) the extraordinary loss (gain) recognized in the governmental funds will not be the same amount as the extraordinary gain (loss) that will be recognized in the fiduciary fund financial statements. The difference between the extraordinary loss recognized in the fund financial statements and the extraordinary loss recognized in the fiduciary fund-private purpose trust financial statements is reconciled as follows: Total extraordinary loss reported in the governmental funds statements $ 19,553,234 Add: Capital assets previously recorded in the government-wide financial statements 6,958,581 Add: Deferred charges previously recorded in the government-wide financial statements 429,750 Less: Long-term debt previously reported in the government-wide financial statements (27,298,410) Total extraordinary loss reported in the private-purpose trust fund statement $ (356,845) -67- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 15) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, (continued) Schedule of changes in long-term liabilities for the period from February 1, 2012 to June 30, 2012 February 1,2012 Transferred from June 30,2012 Redevelopment Ending Due within Agency Increases Decreases Balance one year Successor agency Bonds payable: 1999 Tax allocation bonds $ 4,470,000 $ - $ - $ 4,470,000 $ 550,000 2001 Tax allocation bonds 11,490,000 - - 11,490,000 20,000 2006 Tax allocation bonds 11,615,000 - - 11,615,000 35,000 Subtotal bonds payable 27,575,000 - - 27,575,000 605,000 Plus/(less)deferred amounts: For issuance discount (276,590) - 10,847 (265,743) Successor agency long-term liabilities $ 27,298,410 $ - $ 10,847 $ 27,309,257 $ 605,000 Combined annual debt service requirements to maturity for all bonds are as follows: Year Ending Principal Interest Total 2013 $ 605,000 $ 1,309,333 $ 1,914,333 2014 635,000 1,280,243 1,915,243 2015 665,000 1,249,820 1,914,820 2016 700,000 1,201,889 1,901,889 2017 730,000 1,185,113 1,915,113 2018-2022 3,745,000 5,382,572 9,127,572 2023-2027 4,410,000 4,407,136 8,817,136 2028-2032 5,645,000 3,171,361 8,816,361 2033-2037 7,130,000 1,686,561 8,816,561 2038-2039 3,310,000 218,749 3,528,749 Total $ 27,575,000 $ 21,092,777 $ 48,667,777 -68- City of Moorpark Notes to Financial Statements Year Ended June 30, 2012 16) RESTATEMENT OF FUND BALANCES The beginning fund balance shown in the Statement of Activities of the Government-wide statements was restated as a result of the recording of an OPEB asset at the beginning of the fiscal year 2012, the recognition of deferred revenue from prior periods, and the portion of Land held for resale converted to Capital assets from the former MRA. The restatements were done to comply with the requirements of Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions and to record a long-term note receivable from prior year in the City statements. The beginning fund balances shown in the Statement of Revenues, Expenditures and Changes in Fund Balance of the General fund, the Redevelopment Agency Operating fund, and the Redevelopment Agency Capital Projects fund were restated as the correction and recording of Property held for resale at the beginning of the fiscal year 2012 in the General fund that was being mistakenly reported in the MRA Operating and MRA Capital Projects funds, and to adjust beginning fund balances as appropriate. Portion of these assets are classified as capital assets in the City financial statements. The beginning fund balances were restated as follows: Government-wide statements Statement of Activities Net Assets-Beginning of the Year-prior to restatement $ 231,898,610 Capital Assets-Dissolved MRA-adjustment (663,937) OPEB Obligation- adjustment 420,227 Deferred Loan-adjustment 1,176,500 Net Assets-Beginning of the Year-as restated $ 232,831,400 Governmental Funds Statement of Revenues,Expenditures and Changes in Fund Balances General Fund Net Assets-Beginning of the Year-prior to restatement $ 3,000,000 Land Held for Resale-asset adjustment 611,085 Beginning Fund Balance-as restated $ 3,611,085 Redevelopment Agency-Operating Fund Balance-Beginning of the Year-prior to restatement $ 7,005,294 Land Held for Resale-asset adjustment (986,020) Fund Balance-Beginning of the Year-as restated $ 6,019,274 Redevelopment Agency-Capital Projects Fund Balance-Beginning of the Year-prior to restatement $ 13,256,633 Land Held for Resale-asset adjustment (289,002) Fund Balance-Beginning of the Year-as restated $ 12,967,631 -69- REQUIRED SUPPLEMENTARY INFORMATION Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - General Fund Year Ended June 30, 2012 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Property Taxes Current Secured $ 3,150,000 $ 3,150,000 $ 3,096,832 $ (53,168) Current Unsecured 40,000 115,000 115,040 40 Prior year Secured-Unsecured 10,000 10,000 4,775 (5,225) Supplemental Secured-Unsecured 75,000 35,000 39,375 4,375 Real Property Transfer Tax 100,000 100,000 138,796 38,796 Homeowners Property Exemption 45,000 45,000 39,284 (5,716) Parcel Tax 140,000 175,000 186,010 11,010 Property Taxes-VLF 2,900,000 2,880,000 2,880,212 212 Other Property Taxes - - 442,951 442,951 Total Property Taxes 6,460,000 6,510,000 6,943,275 433,275 Sales Taxes Sales and use tax 2,500,000 2,600,000 2,622,419 22,419 Sales tax compensation 825,000 857,000 857,217 217 Total Sales Taxes 3,325,000 3,457,000 3,479,636 22,636 Franchise Fees Cable TV 400,000 400,000 417,118 17,118 Edison 300,000 300,000 277,067 (22,933) Gas 100,000 100,000 94,596 (5,404) Oil - - 2,742 2,742 PEG Fees 30,000 30,000 48,601 18,601 GI Rubbish 185,000 185,000 198,330 13,330 Moorpark Rubbish 100,000 100,000 124,892 24,892 Landfill local impact fee 50,000 50,000 59,511 9,511 CIWMP Fees 10,000 10,000 8,884 (1,116) Total Franchise Fees 1,175,000 1,175,000 1,231,741 56,741 Licenses and Permits Business Registration 125,000 125,000 125,428 428 Filming Permits 7,000 2,000 10,300 8,300 Miscellaneous Business Permits - - 1,119 1,119 NPDES Business Inspection Fees 13,500 13,500 5,654 (7,846) Total Licenses and Permits 145,500 140,500 142,501 2,001 CONTINUED - 70 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - General Fund Year Ended June 30, 2012 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Fines and Forfeitures Municipal Codes Fines 200,000 200,000 265,382 65,382 Animal Control Fines 2,000 2,000 515 (1,485) Forfeitures and Penalties 2,000 2,000 - (2,000) Total Fines and Forfeitures 204,000 204,000 265,897 61,897 Use of Money and Property Investment Earnings 350,000 350,000 381,145 31,145 Rents and Concessions 188,095 188,095 118,791 (69,304) Interest/City-MRA Advance 150,000 - - - Total Use of Money and Property 688,095 538,095 499,936 (38,159) Charges for Services Other Administrative Services 80,000 80,000 237,270 157,270 Administrative Fees 306,500 179,000 214,768 35,768 Park and Facility Use Fee 70,000 70,000 67,914 (2,086) Contract Class Registration Fees 137,000 215,000 233,435 18,435 League Fees 125,000 125,000 111,518 (13,482) Recreation Events Fees 281,300 281,300 277,964 (3,336) Other Recreation Fees - - 3,887 3,887 Advertising in Brochure 8,000 8,000 8,755 755 Other Community Services Fees 2,000 2,000 549 (1,451) Photocopying 1,000 1,000 1,104 104 Sale of Documents 1,000 1,000 767 (233) Special Police Department Services 30,000 30,000 49,660 19,660 NSF Fees and Charges 1,000 1,000 976 (24) Planning Time Charges - - 2,126 2,126 Total Charges for Services 1,042,800 993,300 1,210,693 217,393 Intergovernmental Motor Vehicle in Lieu 75,000 75,000 18,590 (56,410) Other State Funds 20,000 20,000 22,119 2,119 County Grants 10,000 10,000 21,809 11,809 Other Federal Revenue Grants 3,000 3,000 16,647 13,647 Total Intergovernmental 108,000 108,000 79,165 (28,835) CONTINUED - 71 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - General Fund Year Ended June 30, 2012 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Other Revenues Cost Plan Revenues 2,191,800 2,191,800 - (2,191,800) Other Loans Payoff - 900,000 - (900,000) Contributions-Donations 10,000 10,000 8,732 (1,268) Revenues not classified elsewhere 15,000 15,000 11,417 (3,583) Expense Reimursements 75,000 75,000 67,933 (7,067) Restitutions-Insurance Proceeds 20,000 20,000 113,184 93,184 Total Other Revenues 2,311,800 3,211,800 201,266 (3,010,534) Total revenues 15,460,195 16,337,695 14,054,110 (2,283,585) EXPENDITURES General government 1,039,641 1,114,781 886,262 228,519 Public safety 6,395,537 6,395,537 6,173,964 221,573 Public services 1,643,054 2,224,977 1,845,732 379,245 Parks and recreation 1,621,852 1,768,399 1,551,591 216,808 Capital Outlay 200,404 395,718 83,538 312,180 Total expenditures 10,900,488 11,899,412 10,541,087 1,358,325 Excess (deficiency)of revenues over expenditures 4,559,707 4,438,283 3,513,023 (925,260) OTHER FINANCING SOURCES (USES) Transfers in 26,000 26,000 6,533 (19,467) Transfers out (2,390,116) (2,367,906) (3,520,556) (1,152,650) Total other financing sources (uses) (2,364,116) (2,341,906) (3,514,023) (1,172,117) Net change in fund balance 2,195,591 2,096,377 (1,000) (2,097,377) Fund balance, beginning of year, restated 3,611,085 3,611,085 3,611,085 - Fund balance, end of year $ 5,806,676 $ 5,707,462 $ 3,610,085 $ (2,097,377) - 72 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - Street and Traffic Safety-Special Revenue Fund Year Ended June 30, 2012 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property Investment Earnings $ 243,000 $ 243,000 $ 253,004 $ 10,004 Total Use of Money and Property 243,000 243,000 253,004 10,004 Charges for Services Other Development Fees 1,186,281 1,186,281 265,170 (921,111) Total Charges for Services 1,186,281 1,186,281 265,170 (921,111) Other Revenues Restitutions-Insurance Proceeds - - 3,865 3,865 Total Other Revenues - - 3,865 3,865 Total revenues 1,429,281 1,429,281 522,039 (907,242) EXPENDITURES Public services 259,571 259,571 230,243 29,328 Capital Outlay 4,006,029 4,453,962 307,367 4,146,595 Total expenditures 4,265,600 4,713,533 537,610 4,175,923 Excess (deficiency)of revenues over expenditures (2,836,319) (3,284,252) (15,571) 3,268,681 OTHER FINANCING SOURCES (USES) Transfers out (50,000) (50,000) (13,960) 36,040 Total other financing sources (uses) (50,000) (50,000) (13,960) 36,040 Net change in fund balance (2,886,319) (3,334,252) (29,531) 3,304,721 Fund balance, beginning of year 19,334,143 19,334,143 19,334,143 - Fund balance, end of year $ 16,447,824 $ 15,999,891 $ 19,304,612 $ 3,304,721 - 73 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule -Assessment Districts -Special Revenue Fund Year Ended June 30, 2012 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property Investment Earnings $ 85,000 $ 85,000 $ 84,360 $ (640) Total Use of Money and Property 85,000 85,000 84,360 (640) Charges for Services Tennis-Basketball Court Lightning 6,400 6,400 7,491 1,091 Total Charges for Services 6,400 6,400 7,491 1,091 Special Benefit Assessment SBA-Street Lightning 244,300 244,300 252,408 8,108 SBA- Landscape Maintenance 1,090,300 1,090,300 1,106,596 16,296 SBA-Storm Drain Maintenance 9,400 9,400 9,395 (5) SBA- Park Maintenance 710,000 710,000 721,875 11,875 Total Intergovernmental 2,054,000 2,054,000 2,090,274 36,274 Other Revenues Expense Reimursements 18,000 28,800 43,238 14,438 Total Other Revenues 18,000 28,800 43,238 14,438 Total revenues 2,163,400 2,174,200 2,225,363 51,163 EXPENDITURES Public service 411,102 411,102 375,297 35,805 Parks and recreation 4,614,782 4,669,383 3,483,566 1,185,817 Capital Outlay 34,000 280,991 76,658 204,333 Total expenditures 5,059,884 5,361,476 3,935,521 1,425,955 Excess (deficiency) of revenues over expenditures (2,896,484) (3,187,276) (1,710,158) 1,477,118 OTHER FINANCING SOURCES(USES) Transfers in 1,698,982 1,639,180 1,395,717 (243,463) Total other financing sources (uses) 1,698,982 1,639,180 1,395,717 (243,463) Net change in fund balance (1,197,502) (1,548,096) (314,441) 1,233,655 Fund balance, beginning of year 6,353,233 6,353,233 6,353,233 - Fund balance, end of year $ 5,155,731 $ 4,805,137 $ 6,038,792 $ 1,233,655 - 74 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - Los Angeles Area of Contribution - Special Revenue Fund Year Ended June 30, 2012 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property Investment Earnings $ 144,000 $ 144,000 $ 152,436 $ 8,436 Total Use of Money and Property 144,000 144,000 152,436 8,436 Charges for Services Area of Contribution Fee 194,233 194,233 7,807 (186,426) Total Charges for Services 194,233 194,233 7,807 (186,426) Total revenues 338,233 338,233 160,243 (177,990) EXPENDITURES Public services 35,000 35,000 1,298 33,702 Capital Outlay 6,024,113 7,083,670 117,660 6,966,010 Total expenditures 6,059,113 7,118,670 118,958 6,999,712 Excess (deficiency)of revenues over expenditures (5,720,880) (6,780,437) 41,285 6,821,722 OTHER FINANCING SOURCES(USES) Transfers out (57,000) (57,000) (12,700) 44,300 Total other financing sources (uses) (57,000) (57,000) (12,700) 44,300 Net change in fund balance (5,777,880) (6,837,437) 28,585 6,866,022 Fund balance, beginning of year 11,733,981 11,733,981 11,733,981 - Fund balance, end of year $ 5,956,101 $ 4,896,544 $ 11,762,566 $ 6,866,022 - 75 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - Park/Public Facilities - Special Revenue Fund Year Ended June 30, 2012 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property Investment Earnings $ 25,000 $ 25,000 $ 26,147 $ 1,147 Total Use of Money and Property 25,000 25,000 26,147 1,147 Charges for Services Rents and Concessions - 38,000 37,543 (457) Trees-Landscape Fees 650 650 926 276 Library Facilities Fees 63,128 63,128 13,885 (49,243) Fees in Lieu of Park Land 88,900 88,900 100,000 11,100 Other Development Fees 10,000 10,000 11,261 1,261 Total Charges for Services 162,678 200,678 163,615 (37,063) Total revenues 187,678 225,678 189,762 (35,916) EXPENDITURES Public services 25,000 25,000 2,969 22,031 Parks and recreation - - 3,800 (3,800) Capital Outlay 164,676 164,676 10,930 153,746 Total expenditures 189,676 189,676 17,699 171,977 Net change in fund balance (1,998) 36,002 172,063 136,061 Fund balance, beginning of year 745,175 745,175 745,175 - Fund balance, end of year $ 743,177 $ 781,177 $ 917,238 $ 136,061 - 76 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - MRA Low and Moderate Income Housing -Special Revenue Fund Year Ended June 30, 2012 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Property Taxes Tax Increment Secured $ 1,140,000 $ 1,140,000 $ 263,496 $ (876,504) Tax Increment Unsecured 185,000 185,000 116,196 (68,804) Other Property Taxes 5,000 5,000 4,484 (516) Total Property Taxes 1,330,000 1,330,000 384,176 (945,824) Use of Money and Property Investment Earnings 2,000 2,000 379 (1,621) Contributions 33,000 33,000 10,850 (22,150) Total Use of Money and Property 35,000 35,000 11,229 (23,771) Other Revenues Reimbursements - - 41 41 Total Other Revenues - - 41 41 Total revenues 1,365,000 1,365,000 395,446 (969,554) EXPENDITURES Public services 342,524 342,584 147,774 194,810 Capital Outlay 58,798 75,775 4,027 71,748 Debt service: Principal 16,000 16,000 - 16,000 Interest 20,000 20,000 20,000 - Total expenditures 437,322 454,359 171,801 282,558 Excess (deficiency)of revenues over expenditures 927,678 910,641 223,645 (686,996) OTHER FINANCING SOURCES (USES) Transfers out (151,142) (151,142) (151,142) - Total other financing sources (uses) (151,142) (151,142) (151,142) - Extraordinary Item Gain(Loss)on Dissolution of MRA - - (8,318,904) (8,318,904) Net change in fund balance 776,536 759,499 (8,246,401) (9,005,900) Fund balance, beginning of year, restated 8,246,401 8,246,401 8,246,401 - Fund balance, end of year $ 9,022,937 $ 9,005,900 $ - $ (9,005,900) - 77 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - MRA Operating -Special Revenue Fund Year Ended June 30, 2012 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Property Taxes Tax Increment Secured $ 2,810,000 $ 2,810,000 $ 1,111,294 $ (1,698,706) Tax Increment Unsecured 740,000 740,000 464,785 (275,215) Other Property Taxes 20,000 20,000 17,935 (2,065) Total Property Taxes 3,570,000 3,570,000 1,594,014 (1,975,986) Use of Money and Property Investment Earnings 24,000 24,000 5,447 (18,553) Rents and Concessions 51,000 51,000 50,375 (625) Total Use of Money and Property 75,000 75,000 55,822 (19,178) Other Revenues Tickets Sales 130,000 130,000 75,948 (54,052) Loans Payoffs - - 900,000 900,000 Miscellaneous 10,000 10,000 2,050 (7,950) Revenues not Classified Elsewhere 3,000 3,000 2,000 (1,000) Expense Reimbursements - - 1,174 1,174 Restitutions-Insurance Proceeds - - 45 45 Total Other Revenues 143,000 143,000 981,217 838,217 Total revenues 3,788,000 3,788,000 2,631,053 (1,156,947) EXPENDITURES Public services 3,887,000 3,887,000 1,104,526 2,782,474 Capital Outlay 178,244 174,901 1,283,409 (1,108,508) Total expenditures 4,065,244 4,061,901 2,387,935 1,673,966 Excess (deficiency)of revenues over expenditures (277,244) (273,901) 243,118 517,019 OTHER FINANCING SOURCES(USES) Transfers out (11,000) (11,000) (29,620) (18,620) Total other financing sources (uses) (11,000) (11,000) (29,620) (18,620) Extraordinary Item Gain(Loss)on Dissolution of MRA - - (6,232,772) (6,232,772) Net change in fund balance (288,244) (284,901) (6,019,274) (5,734,373) Fund balance, beginning of year 6,019,274 6,019,274 6,019,274 - Fund balance,end of year $ 5,731,030 $ 5,734,373 $ - $ (5,734,373) - 78 - City of Moorpark Schedule of Funding Progress for MRHP Year Ended June 30, 2012 Schedule of Funding Progress for MRHP(Amounts in 000's) Entry age Actuarial Actuarial Actuarial Unfunded Actuarial Funded Annual UAAL as a%of Valuation Value of Accrued Liability Accrued Liability (b- Ratio Covered Covered Payroll Date Assets(a) (b) a) (a/b) Payroll (c) ((b-a)/c) 6/30/2008 $ - $ 364 $ 364 0.0% $ 4,519 8.1% 6/30/2010 487 590 103 82.5% 5,066 2.0% GASB 45 was implemented prospectively in fiscal year 2009. There were no previous actuarial valuations. As of June 30, 2012 the City of Moorpark is in the process of obtaining a new actuarial valuation for the plan. - 79 - City of Moorpark Notes to the Required Supplementary Information Year Ended June 30, 2012 Budgetary Accounting The City adopts an annual budget on a basis consistent with GAAP for all governmental funds. The City Manager is required to prepare and submit to the City Council the annual budget of the City and administer it thereafter. All annual appropriations lapse at fiscal year-end. Throughout the year, the City Council made several supplementing budgetary adjustments to various funds. These adjustments resulted in a net appropriation increase of $4,774,642. This increase resulted primarily from additional appropriations to various construction in progress projects, acquisition of property, prepayments of certain liabilities and rebudgeted projects and amounts carried over from Fiscal Year 2010/11 as continuing appropriations. Budget to Actual Schedules The City does not present a Budgetary Comparison Schedule for the following major Special Revenue Governmental Fund: - Low and Moderate Income Housing Asset Special Revenue Fund: This is a new special revenue fund created to retain the housing assets of the dissolved Redevelopment Agency. The City of Moorpark did not prepare a budget for this fund. -80- SUPPLEMENTARY INFORMATION City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual—Police Facilities Fee—Capital Projects Fund Year Ended June 30, 2012 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Maintenance Assessments $ 72,501 $ 72,501 $ 16,432 $ (56,069) Total revenues 72,501 72,501 16,432 (56,069) EXPENDITURES Total expenditures - - - - Excess (deficiency) of revenues over expenditures 72,501 72,501 16,432 (56,069) Net change in fund balance 72,501 72,501 16,432 (56,069) Fund balance (deficit), beginning of year (1,886,590) (1,886,590) (1,886,590) - Fund balance, end of year $ (1,814,089) $ (1,814,089) $ (1,870,158) $ (56,069) - 81 - City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual—MRA Capital Projects—Capital Projects Fund Year Ended June 30, 2012 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property $ 15,000 $ 15,000 $ 13,775 $ (1,225) Other Revenue 5,600,000 5,600,000 - (5,600,000) Total revenues 5,615,000 5,615,000 13,775 (5,601,225) EXPENDITURES Capital Outlay 9,785,193 11,150,680 2,200,636 8,950,044 Total expenditures 9,785,193 11,150,680 2,200,636 8,950,044 Excess (deficiency)of revenues over expenditures (4,170,193) (5,535,680) (2,186,861) 3,348,819 OTHER FINANCING SOURCES (USES) Transfers out (42,000) (42,000) - 42,000 Total other financing sources (uses) (42,000) (42,000) - 42,000 Extraordinary Item Gain(loss)on Dissolution of MRA - - (10,780,770) (10,780,770) Net change in fund balance (4,212,193) (5,577,680) (12,967,631) (7,389,951) Fund balance, beginning of year, restated 12,967,631 12,967,631 12,967,631 - Fund balance, end of year $ 8,755,438 $ 7,389,951 $ - $ (7,389,951) - 82 - City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual —Special Projects—Capital Projects Fund Year Ended June 30, 2012 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property $ - $ - $ 3,800 $ 3,800 Total revenues - - 3,800 3,800 EXPENDITURES Capital Outlay 2,700,000 2,690,830 - 2,690,830 Total expenditures 2,700,000 2,690,830 - 2,690,830 Excess (deficiency) of revenues over expenditures (2,700,000) (2,690,830) 3,800 2,694,630 OTHER FINANCING SOURCES (USES) Transfers in - - 1,500,523 1,500,523 Total other financing sources (uses) - - 1,500,523 1,500,523 Net change in fund balance (2,700,000) (2,690,830) 1,504,323 4,195,153 Fund balance, beginning of year 24,743,410 24,743,410 24,743,410 - Fund balance, end of year $ 22,043,410 $ 22,052,580 $ 26,247,733 $ 4,195,153 - 83 - City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual—MRA Debt Service—Debt Service Fund Year Ended June 30, 2012 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Taxes $ 1,752,794 $ 1,752,794 $ 1,410,874 $ (341,920) Use of money and property 3,000 3,000 16,244 13,244 Total revenues 1,755,794 1,755,794 1,427,118 (328,676) EXPENDITURES Debt service: Principal 580,000 580,000 580,000 - Interest 1,323,794 1,323,794 668,825 654,969 Total expenditures 1,903,794 1,903,794 1,248,825 654,969 Excess (deficiency) of revenues over expenditures (148,000) (148,000) 178,293 326,293 OTHER FINANCING SOURCES(USES) Transfers in 151,142 151,142 151,142 - Total other financing sources (uses) 151,142 151,142 151,142 - Extraordinary Item Gain(loss) on Dissolution of MRA - - (2,539,692) (2,539,692) Net change in fund balance 3,142 3,142 (2,210,257) (2,213,399) Fund balance, beginning of year 2,210,257 2,210,257 2,210,257 - Fund balance, end of year $ 2,213,399 $ 2,213,399 $ - $ (2,213,399) - 84 - City of Moorpark Non-Major Governmental Funds June 30, 2012 SPECIAL REVENUE FUNDS Library Services Fund — is used to account for the financial resources for the operation of the City's public library system. Sources of revenue are a percentage of property taxes, library fines, federal and state grant funds, gifts, donations and fees for services. Traffic Safety Fund - is used to account for revenues collected from traffic fines and forfeitures, which are used for crossing guards and parking enforcement. Affordable Housing Fund (City) - is used to account for grants used for development of affordable housing units. Sources of revenue are development fees and rental income. Endowment Fund - is used to account for funds received by the City for certain projects or other sources directed by the City Council to be held for the purpose of one-time expenditure of community-wide benefit due to the impact of additional development. Sources of revenue are development fees. Community Development Fund - is used to account for planning, development, public works and engineering related expenditures. Sources of revenues are from service fees collected from issuance of various types of permits, plan checks, improvement inspections and other miscellaneous items. Tierra Rejeda/Spring Road A.O.0 Fund - is used to account for the financial resources for capital projects related to streets and other improvements within the Tierra Rejeda & Spring Road project area. Sources of revenue are development fees. The City does not present a Budget to Actual schedule for this fund. Casey/Gabbert Road A.O.0 Fund - is used to account for the financial resources for capital projects related to streets and other improvements within the Casey & Gabbert project area. Sources of revenue are development fees. Freemont Storm Drain A.O.0 Fund - is used to account for the financial resources for capital projects related to streets and other improvements within the Freemont Storm Drain project area. Sources of revenue are development fees. The City does not present a Budget to Actual schedule for this fund. State Gas Tax Fund - is used to account for fees used for street maintenance, right-of-way acquisition and street construction. Source of revenue is gas tax money collected by the State of California. Proposition 1B Local Streets and Roads Fund — is used to account for funds received from the State of California for specific transportation programs. Source of revenue is Prop 1B bond proceeds distributed by the State of California. Art in Public Places Fund - is used to account for fees used for public facilities improvements, most recently the Veterans' Memorial. Source of revenue is development fees. Proposition 1 B Safety and Security Fund —is used to account for the financial resources of the Prop 1B bonds used for the seismic safety of bridges and public transit. Source of revenue is the State of California selling Prop 1B bonds. - 85 - City of Moorpark Non-Major Governmental Funds June 30, 2012 SPECIAL REVENUE FUNDS, (continued) State and Federal Assistance Fund - is used to account for Federal and State grants used for the construction of streets and related improvements and helps fund law enforcement. Sources of funds are federal and state grants. Local Transportation Transit Fund - is used to account for fees spent on local transportation operations, maintenance and related programs. Sources of revenue include Ventura County 8C funding, the Federal Transportation Administration grant funding and bus fares. 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. Sources of revenue are AB939 fees from rubbish operators, compost bin sales, the California Beverage Container grant, and the Used Oil Recycling grant. CAPITAL PROJECTS FUNDS Capital Projects Fund — is used to account for financial resources used for major capital projects of the general government operations. Sources of revenue are the Ventura Community College District tax increment pass through fees and interest. Moorpark Highlands Fund - is used to accounts for the remaining bond proceeds issued for the construction of certain public facilities for the benefit of the Community Facilities District 2004-01. The City does not present a Budget to Actual schedule for this fund City Hall Building Fund - is used to account for the funds used to build the new Civic Center Complex. Original source of revenue was transfer from the Endowment Fund; current revenue source is interest earnings. Equipment Replacement Fund - is used to account for the funds used to replace city equipment and vehicles. Sources of revenue are interest earnings and transfers from the General Fund. - 86 - City of Moorpark Combining Balance Sheet Non-Major Governmental Funds June 30, 2012 Special Revenue Funds City Library Traffic Affordable Services Safety Housing ASSETS Cash and investments $ 836,711 $ 636,790 $ 3,958,053 Cash and investments with fiscal agent - - - Receivables: Accounts 111 28,660 - Notes and loans - - 243,196 Due from other funds - - - Prepaid items - - 5,200 Property held for resale - - 55,573 Total assets $ 836,822 $ 665,450 $ 4,262,022 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 53,541 $ 7,077 $ 6,329 Due to other funds - - - Deferred revenues - - - Deferred loans - - 243,196 Total liabilities 53,541 7,077 249,525 Fund balances: Nonspendable - - - Restricted - 658,373 4,012,497 Committed 783,281 - - Assigned - - - Unassigned - - - Total fund balances 783,281 658,373 4,012,497 Total liabilities and fund balances $ 836,822 $ 665,450 $ 4,262,022 -87- Special Revenue Funds Tierra Rejada/ Freemount Endowment Community Spring Road Casey/Gabbert Storm Drain Fund Development A.O.C. A.O.C. A.O.C. $ 1,524,650 $ 102,507 $ - $ 88,460 $ 15,483 - 1,359 - - - 6,500 - - - - 1,870,158 - - - - $ 3,401,308 $ 103,866 $ - $ 88,460 $ 15,483 $ - $ 103,866 $ - $ - $ - - - 177,006 - - 6,500 - - - - 6,500 103,866 177,006 - - 1,870,158 - - - - - - - 88,460 15,483 1,524,650 - - - - - - (177,006) - - 3,394,808 - (177,006) 88,460 15,483 $ 3,401,308 $ 103,866 $ - $ 88,460 $ 15,483 -88- City of Moorpark Combining Balance Sheet, (continued) Non-Major Governmental Funds June 30, 2012 Special Revenue Funds Prop 1B Art State Gas Local Streets in Public Tax and Roads Places ASSETS Cash and investments $ 886,273 $ 585,692 $ 1,752,549 Cash and investments with fiscal agent - - - Receivables: Accounts 114,475 - - Notes - - - Due from other funds - - - Prepaid items - - - Property held for resale - - - Total assets $ 1,000,748 $ 585,692 $ 1,752,549 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 21,753 $ - $ - Due to other funds - - - Deferred revenues - - - Deferred loans - - - Total liabilities 21,753 - - Fund balances: Nonspendable - - - Restricted 978,995 585,692 1,752,549 Committed - - - Assigned - - Unassigned - - - Total fund balances 978,995 585,692 1,752,549 Total liabilities and fund balances $ 1,000,748 $ 585,692 $ 1,752,549 -89- Special Revenue Funds Total Prop 1B State and Local Safety Federal Transportation Solid Special and Security Assistance Transit Waste Revenue $ - $ 565,444 $ 68,836 $ 1,018,915 $ 12,040,363 - 25,000 159,085 22,351 351,041 - - - - 249,696 - - - - 1,870,158 - - - - 5,200 - - - - 55,573 $ - $ 590,444 $ 227,921 $ 1,041,266 $ 14,572,031 $ - $ 14,780 $ 43,530 $ 53,334 $ 304,210 - 13,513 - - 190,519 - 34,624 - - 34,624 - - - - 249,696 - 62,917 43,530 53,334 779,049 - - - - 1,870,158 - 527,527 184,391 987,932 9,791,899 - - - 783,281 - - - - 1,524,650 - - - - (177,006) - 527,527 184,391 987,932 13,792,982 $ - $ 590,444 $ 227,921 $ 1,041,266 $ 14,572,031 -90- City of Moorpark Combining Balance Sheet, (continued) Non-Major Governmental Funds June 30, 2012 Capital Projects Moorpark Capital Highlands City Hall Projects Improvement Building ASSETS Cash and investments $ 92,353 $ - $ 3,723,256 Cash and investments with fiscal agent - 2,844 - Receivables: Accounts - - - Notes - - - Due from other funds - - - Prepaid items - - - Property held for resale - - - Total assets $ 92,353 $ 2,844 $ 3,723,256 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ - $ 37,218 Due to other funds - - - Deferred revenues - - - Deferred loans - - - Total liabilities - - 37,218 Fund balances: Nonspendable - - - Restricted - - - Committed - - - Assigned 92,353 2,844 3,686,038 Unassigned - - - Total fund balances 92,353 2,844 3,686,038 Total liabilities and fund balances $ 92,353 $ 2,844 $ 3,723,256 -91- Capital Projects Total Total Capital NonMajor Equipment Projects Governmental Replacement Funds Funds $ 338,658 $ 4,154,267 $ 16,194,630 2,844 2,844 351,041 249,696 1,870,158 5,200 55,573 $ 338,658 $ 4,157,111 $ 18,729,142 $ $ 37,218 $ 341,428 190,519 34,624 249,696 37,218 816,267 1,870,158 9,791,899 783,281 338,658 4,119,893 5,644,543 (177,006) 338,658 4,119,893 17,912,875 $ 338,658 $ 4,157,111 $ 18,729,142 -92- City of Moorpark Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Non-Major Governmental Funds Year Ended June 30, 2012 Special Revenue Funds City Library Traffic Affordable Services Safety Housing REVENUES Taxes $ 823,826 $ - $ - Licenses and permits - - - Fines and forfeitures 17,760 159,445 - Use of money and property 2,243 8,419 51,978 Charges for services 8,811 - 113,504 Intergovernmental 7,500 - - Maintenance assessments - - - Other revenue - - 105,349 Total revenues 860,140 167,864 270,831 EXPENDITURES Current: Public safety - 193,101 - Public services 872,067 - 142,402 Capital Outlay - - - Total expenditures 872,067 193,101 142,402 Excess (deficiency) of revenues over expenditures (11,927) (25,237) 128,429 OTHER FINANCING SOURCES(USES) Transfers in - 2,653 - Transfers out - - - Total other financing sources (uses) - 2,653 - Net change in fund balances (11,927) (22,584) 128,429 Fund balances, beginning of year 795,208 680,957 3,884,068 Fund balances, end of year $ 783,281 $ 658,373 $ 4,012,497 -93- Special Revenue Funds Tierra Rejada/ Freemount Endowment Community Spring Road Casey/Gabbert Storm Drain Fund Development A.O.C. A.O.C. A.O.C. $ - $ - $ - $ - $ - - 418,939 - - - - 3,324 - - - 93,274 1,077 - 1,166 203 129,495 442,866 - 2,030 - - 1,477 - - - 222,769 867,683 - 3,196 203 - 1,931,381 - - - 95,106 - - - - 95,106 1,931,381 - - - 127,663 (1,063,698) - 3,196 203 - 913,813 - - - (5,070) - - - - (5,070) 913,813 - - - 122,593 (149,885) - 3,196 203 3,272,215 149,885 (177,006) 85,264 15,280 $ 3,394,808 $ - $ (177,006) $ 88,460 $ 15,483 -94- City of Moorpark Combining Statement of Revenues, Expenditures, and Changes in Fund Balance, (continued) Non-Major Governmental Funds Year Ended June 30, 2012 Special Revenue Prop 1B Art State Local Streets in Public Gas Tax and Roads Places REVENUES Taxes $ - $ - $ - Licenses and permits 90 - - Fines and forfeitures - - - Use of money and property - 7,684 22,639 Charges for services 1,057,211 - 75,115 Intergovernmental 10,179 - - Maintenance assessments 8,251 - - Other revenue - - - Total revenues 1,075,731 7,684 97,754 EXPENDITURES Current: Public safety - - - Public services 1,028,274 - - Capital Outlay 881 - - Total expenditures 1,029,155 - - Excess (deficiency)of revenues over expenditures 46,576 7,684 97,754 OTHER FINANCING SOURCES (USES) Transfers in 720,824 - - Transfers out (280,244) - - Total other financing sources (uses) 440,580 - - Net change in fund balances 487,156 7,684 97,754 Fund balances, beginning of year 491,839 578,008 1,654,795 Fund balances, end of year $ 978,995 $ 585,692 $ 1,752,549 -95- Special Revenue Total Prop 1B State and Local Special Safety Federal Transportation Solid Revenue and Security Assistance Transit Waste Funds $ - $ - $ - $ 279,633 $ 1,103,459 - - - - 419,029 - - - - 180,529 - 8,400 2 13,295 210,380 - - 73,433 2,213 1,904,678 - 892,903 606,844 30,871 1,548,297 - - - - 8,251 - 300 8,493 - 115,619 - 901,603 688,772 326,012 5,490,242 - 100,000 - - 293,101 177 - 327,585 321,664 4,623,550 735 62,575 328,656 8,241 496,194 912 162,575 656,241 329,905 5,412,845 (912) 739,028 32,531 (3,893) 77,397 6,073 1,713 7,018 3,557 1,655,651 - (713,530) (9,512) - (1,008,356) 6,073 (711,817) (2,494) 3,557 647,295 5,161 27,211 30,037 (336) 724,692 (5,161) 500,316 154,354 988,268 13,068,290 $ - $ 527,527 $ 184,391 $ 987,932 $ 13,792,982 -96- City of Moorpark Combining Statement of Revenues, Expenditures, and Changes in Fund Balance, (continued) Non-Major Governmental Funds Year Ended June 30, 2012 Capital Projects Moorpark Capital Highlands City Hall Projects Improvement Building REVENUES Taxes $ - $ - $ - Licenses and permits - - - Fines and forfeitures - - - Use of money and property 895 - 48,910 Charges for services - - - Intergovernmental - - - Maintenance assessments - - - Other revenue - - - Total revenues 895 - 48,910 EXPENDITURES Current: Public safety - - - Public services - - - Capital Outlay 9,328 2,928 62,669 Total expenditures 9,328 2,928 62,669 Excess (deficiency)of revenues over expenditures (8,433) (2,928) (13,759) OTHER FINANCING SOURCES (USES) Transfers in 29,623 - - Transfers out (2,855) - - Total other financing sources (uses) 26,768 - - Net change in fund balances 18,335 (2,928) (13,759) Fund balances, beginning of year 74,018 5,772 3,699,797 Fund balances, end of year $ 92,353 $ 2,844 $ 3,686,038 -97- Capital Projects Total Total Capital Nonmajor Equipment Projects Governmental Replacement Funds Funds $ - $ - $ 1,103,459 - - 419,029 - - 180,529 4,350 54,155 264,535 - - 1,904,678 - - 1,548,297 - - 8,251 - - 115,619 4,350 54,155 5,544,397 - - 293,101 - - 4,623,550 23,709 98,634 594,828 23,709 98,634 5,511,479 (19,359) (44,479) 32,918 - 29,623 1,685,274 - (2,855) (1,011,211) - 26,768 674,063 (19,359) (17,711) 706,981 358,017 4,137,604 17,205,894 $ 338,658 $ 4,119,893 $ 17,912,875 -98- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Library Services -Special Revenue Fund Year Ended June 30, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Taxes $ 775,000 $ 775,000 $ 823,826 $ 48,826 Fines and forfeitures 17,000 17,000 17,760 760 Use of money and property 7,000 7,000 2,243 (4,757) Charges for services 10,000 10,000 8,811 (1,189) Intergovernmental 13,000 20,500 7,500 (13,000) Total revenues 822,000 829,500 860,140 30,640 EXPENDITURES Current: Public services 926,436 926,436 872,067 54,369 Total expenditures 926,436 926,436 872,067 54,369 Excess (deficiency)of revenues over expenditures (104,436) (96,936) (11,927) 85,009 Net change in fund balance (104,436) (96,936) (11,927) 85,009 Fund balance, beginning of year 795,208 795,208 795,208 - Fund balance, end of year $ 690,772 $ 698,272 $ 783,281 $ 85,009 -99- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Traffic Safety- Special Revenue Fund Year Ended June 30, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Fines and forfeitures $ 200,000 $ 200,000 $ 159,445 $ (40,555) Use of money and property 8,000 8,000 8,419 419 Total revenues 208,000 208,000 167,864 (40,136) EXPENDITURES Public safety 205,484 205,484 193,101 12,383 Total expenditures 205,484 205,484 193,101 12,383 Excess (deficiency)of revenues over expenditures 2,516 2,516 (25,237) (27,753) OTHER FINANCING SOURCES(USES) Transfers in - - 2,653 2,653 Total other financing sources (uses) - - 2,653 2,653 Net change in fund balance 2,516 2,516 (22,584) (25,100) Fund balance, beginning of year 680,957 680,957 680,957 - Fund balance, end of year $ 683,473 $ 683,473 $ 658,373 $ (25,100) -100- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -City Affordable Housing -Special Revenue Fund Year Ended June 30, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 46,000 $ 82,000 $ 51,978 $ (30,022) Charges for services 274,927 274,927 113,504 (161,423) Other revenue 39,000 39,000 105,349 66,349 Total revenues 359,927 395,927 270,831 (125,096) EXPENDITURES Public services 68,747 306,240 142,402 163,838 Total expenditures 68,747 306,240 142,402 163,838 Net change in fund balance 291,180 89,687 128,429 38,742 Fund balance, beginning of year 3,884,068 3,884,068 3,884,068 - Fund balance, end of year $ 4,175,248 $ 3,973,755 $ 4,012,497 $ 38,742 -101- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Endowment -Special Revenue Fund Year Ended June 30, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 100,000 $ 100,000 $ 93,274 $ (6,726) Charges for services 521,306 521,306 129,495 (391,811) Total revenues 621,306 621,306 222,769 (398,537) EXPENDITURES Capital outlay 459,172 407,272 95,106 312,166 Total expenditures 459,172 407,272 95,106 312,166 Excess (deficiency) of revenues over(under)expenditures 162,134 214,034 127,663 (86,371) OTHER FINANCING SOURCES(USES) Transfers out - - (5,070) (5,070) Total other financing sources (uses) - - (5,070) (5,070) Net change in fund balance 162,134 214,034 122,593 (91,441) Fund balance, beginning of year 3,272,215 3,272,215 3,272,215 - Fund balance, end of year $ 3,434,349 $ 3,486,249 $ 3,394,808 $ (91,441) -102- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Community Development- Special Revenue Fund Year Ended June 30, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Licenses and permits $ 472,209 $ 251,000 $ 418,939 $ 167,939 Fines and forfeitures 3,000 3,000 3,324 324 Use of money and property 1,000 1,000 1,077 77 Charges for services 581,396 422,750 442,866 20,116 Other revenue - - 1,477 1,477 Total revenues 1,057,605 677,750 867,683 189,933 EXPENDITURES Public services 2,095,254 1,999,994 1,931,381 68,613 Total expenditures 2,095,254 1,999,994 1,931,381 68,613 Excess (deficiency)of revenues over(under)expenditures (1,037,649) (1,322,244) (1,063,698) 258,546 OTHER FINANCING SOURCES (USES) Transfers in 1,040,000 1,040,000 913,813 (126,187) Total other financing sources (uses) 1,040,000 1,040,000 913,813 (126,187) Net change in fund balance 2,351 (282,244) (149,885) 132,359 Fund balance, beginning of year 149,885 149,885 149,885 - Fund balance, end of year $ 152,236 $ (132,359) $ - $ 132,359 -103- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Casey Gabbert A.O.C. - Special Revenue Fund Year Ended June 30, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 1,000 $ 1,000 $ 1,166 $ 166 Charges for services - - 2,030 2,030 Total revenues 1,000 1,000 3,196 2,196 EXPENDITURES Total expenditures - - - - Excess (deficiency) of revenues over expenditures 1,000 1,000 3,196 2,196 Net change in fund balance 1,000 1,000 3,196 2,196 Fund balance, beginning of year 85,264 85,264 85,264 - Fund balance, end of year $ 86,264 $ 86,264 $ 88,460 $ 2,196 -104- 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, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Licenses and permits $ - $ - $ 90 $ 90 Charges for services 946,000 946,000 1,057,211 111,211 Intergovernmental - - 10,179 10,179 Maintenance assessments - - 8,251 8,251 Total revenues 946,000 946,000 1,075,731 129,731 EXPENDITURES Public services 1,096,513 1,099,330 1,028,274 71,056 Capital outlay 25,000 75,000 881 74,119 Total expenditures 1,121,513 1,174,330 1,029,155 145,175 Excess (deficiency) of revenues over expenditures (175,513) (228,330) 46,576 274,906 OTHER FINANCING SOURCES(USES) Transfers in 803,300 803,300 720,824 (82,476) Transfers out (302,866) (265,274) (280,244) (14,970) Total other financing sources (uses) 500,434 538,026 440,580 (97,446) Net change in fund balance 324,921 309,696 487,156 177,460 Fund balance, beginning of year 491,839 491,839 491,839 - Fund balance, end of year $ 816,760 $ 801,535 $ 978,995 $ 177,460 -105- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Prop 1B Local Streets and Roads -Special Revenue Fund Year Ended June 30, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 8,000 $ 8,000 $ 7,684 $ (316) Total revenues 8,000 8,000 7,684 (316) EXPENDITURES Capital outlay 533,000 539,061 - 539,061 Total expenditures 533,000 539,061 - 539,061 Excess (deficiency) of revenues over (under) expenditures (525,000) (531,061) 7,684 538,745 Net change in fund balance (525,000) (531,061) 7,684 538,745 Fund balance, beginning of year 578,008 578,008 578,008 - Fund balance, end of year $ 53,008 $ 46,947 $ 585,692 $ 538,745 -106- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Art in Public Places -Special Revenue Fund Year Ended June 30, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 20,000 $ 20,000 $ 22,639 $ 2,639 Charges for services 255,440 255,440 75,115 (180,325) Total revenues 275,440 275,440 97,754 (177,686) EXPENDITURES Total expenditures - - - - Net change in fund balance 275,440 275,440 97,754 (177,686) Fund balance, beginning of year 1,654,795 1,654,795 1,654,795 - Fund balance, end of year $ 1,930,235 $ 1,930,235 $ 1,752,549 $ (177,686) -107- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Prop 1B Safety and Security- Special Revenue Fund Year Ended June 30, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 1,000 $ 1,000 $ - $ (1,000) Total revenues 1,000 1,000 - (1,000) EXPENDITURES Public services - - 177 (177) Capital outlay - 3,194 735 2,459 Total expenditures - 3,194 912 2,282 Excess (deficiency) of revenues over(under)expenditures 1,000 (2,194) (912) 1,282 OTHER FINANCING SOURCES(USES) Transfers in - - 6,073 6,073 Total other financing sources (uses) - - 6,073 6,073 Net change in fund balance 1,000 (2,194) 5,161 7,355 Fund balance, beginning of year (5,161) (5,161) (5,161) - Fund balance, end of year $ (4,161) $ (7,355) $ - $ 7,355 -108- 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, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 10,000 $ 10,000 $ 8,400 $ (1,600) Intergovernmental 3,123,000 3,243,000 892,903 (2,350,097) Other revenue - - 300 300 Total revenues 3,133,000 3,253,000 901,603 (2,351,397) EXPENDITURES Public safety 1,302,732 1,302,732 100,000 1,202,732 Capital outlay 1,856,948 1,856,948 62,575 1,794,373 Total expenditures 3,159,680 3,159,680 162,575 2,997,105 Excess (deficiency) of revenues over expenditures (26,680) 93,320 739,028 645,708 OTHER FINANCING SOURCES (USES) Transfers in - - 1,713 1,713 Transfers out (702,000) (702,000) (713,530) (11,530) Total other financing sources (uses) (702,000) (702,000) (711,817) (9,817) Net change in fund balance (728,680) (608,680) 27,211 635,891 Fund balance, beginning of year 500,316 500,316 500,316 - Fund balance, end of year $ (228,364) $ (108,364) $ 527,527 $ 635,891 -109- 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, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ - $ - $ 2 $ 2 Charges for services 60,000 60,000 73,433 13,433 Intergovernmental 835,000 773,465 606,844 (166,621) Other revenue - 8,500 8,493 (7) Total revenues 895,000 841,965 688,772 (153,193) EXPENDITURES Public services 329,936 329,936 327,585 2,351 Capital outlay 708,699 708,699 328,656 380,043 Total expenditures 1,038,635 1,038,635 656,241 382,394 Excess (deficiency) of revenues over expenditures (143,635) (196,670) 32,531 229,201 OTHER FINANCING SOURCES(USES) Transfers in 10,000 10,000 7,018 (2,982) Transfers out (5,300) (5,300) (9,512) (4,212) Total other financing sources (uses) 4,700 4,700 (2,494) (7,194) Net change in fund balance (138,935) (191,970) 30,037 222,007 Fund balance, beginning of year 154,354 154,354 154,354 - Fund balance, end of year $ 15,419 $ (37,616) $ 184,391 $ 222,007 -110- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Solid Waste -Special Revenue Fund Year Ended June 30, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Taxes $ 280,000 $ 280,000 $ 279,633 $ (367) Use of money and property 12,000 12,000 13,295 1,295 Charges for services 3,000 3,000 2,213 (787) Intergovernmental 10,000 10,000 30,871 20,871 Total revenues 305,000 305,000 326,012 21,012 EXPENDITURES Public services 343,810 375,569 321,664 53,905 Capital outlay 8,000 8,241 8,241 - Total expenditures 351,810 383,810 329,905 53,905 Excess (deficiency) of revenues over expenditures (46,810) (78,810) (3,893) 74,917 OTHER FINANCING SOURCES (USES) Transfers in - - 3,557 3,557 Total other financing sources (uses) - - 3,557 3,557 Net change in fund balance (46,810) (78,810) (336) 78,474 Fund balance, beginning of year 988,268 988,268 988,268 - Fund balance, end of year $ 941,458 $ 909,458 $ 987,932 $ 78,474 -111- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Capital Projects -Capital Projects Fund Year Ended June 30, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 3,000 $ 3,000 $ 895 $ (2,105) Total revenues 3,000 3,000 895 (2,105) EXPENDITURES Capital outlay - 33,897 9,328 24,569 Total expenditures - 33,897 9,328 24,569 Excess (deficiency) of revenues over expenditures 3,000 (30,897) (8,433) 22,464 OTHER FINANCING SOURCES (USES) Transfers in 60,000 60,000 29,623 (30,377) Transfers out - - (2,855) (2,855) Total other financing sources (uses) 60,000 60,000 26,768 (33,232) Net change in fund balance 63,000 29,103 18,335 (10,768) Fund balance, beginning of year 74,018 74,018 74,018 - Fund balance, end of year $ 137,018 $ 103,121 $ 92,353 $ (10,768) -112- 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, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 46,000 $ 46,000 $ 48,910 $ 2,910 Total revenues 46,000 46,000 48,910 2,910 EXPENDITURES Capital outlay 3,577,791 3,065,304 62,669 3,002,635 Total expenditures 3,577,791 3,065,304 62,669 3,002,635 Excess (deficiency) of revenues over expenditures (3,531,791) (3,019,304) (13,759) 3,005,545 Net change in fund balance (3,531,791) (3,019,304) (13,759) 3,005,545 Fund balance, beginning of year 3,699,797 3,699,797 3,699,797 - Fund balance, end of year $ 168,006 $ 680,493 $ 3,686,038 $ 3,005,545 -113- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Equipment Replacement -Capital Projects Fund Year Ended June 30, 2012 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 5,000 $ 5,000 $ 4,350 $ (650) Total revenues 5,000 5,000 4,350 (650) EXPENDITURES Capital outlay 61,500 73,626 23,709 49,917 Total expenditures 61,500 73,626 23,709 49,917 Excess (deficiency) of revenues over expenditures (56,500) (68,626) (19,359) 49,267 Net change in fund balance (56,500) (68,626) (19,359) 49,267 Fund balance, beginning of year 358,017 358,017 358,017 - Fund balance, end of year $ 301,517 $ 289,391 $ 338,658 $ 49,267 -114- City of Moorpark Statement of Changes in Fiduciary Net Assets Agency Funds For the Year Ended June 30, 2012 Balance Balance June 30, 2011 Additions Deletions June 30, 2012 General Trust Assets Cash and investments $ 3,684,080 $ 4,120,208 $ 4,209,270 $ 3,595,018 Cash and investments with fiscal agent 6,803,880 1,976,768 3,295,036 5,485,612 Accounts receivable 116,391 26,390 115,001 27,780 Total assets $ 10,604,351 $ 6,123,366 $ 7,619,307 $ 9,108,410 Liabilities Accounts payable $ 157,677 $ 365,818 $ 462,022 $ 61,473 Deposits payable 3,528,136 562,421 554,546 3,536,011 Due to bondholders 6,918,538 5,195,127 6,602,739 5,510,926 Total liabilities $ 10,604,351 $ 6,123,366 $ 7,619,307 $ 9,108,410 -115- STATISTICAL SECTION This page intentionally left blank Statistical Section This part of the City of Moorpark comprehensive annual financial report presents detailed information regarding five categories: financial trends, revenue capacity, demographic and economic information, and operating information. These schedules are presented as a context for understanding the City's overall financial health. Statistical Section Categories Financial Trends Data These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity Data These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity Data These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and its ability to issue additional debt in the future. Demographic and Economic Information These schedules contain demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services it provides and the activities it performs. CITY OF MOORPARK Net Assets by Component Last Ten 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. -116- CITY OF MOORPARK Net Assets by Component Last Ten Fiscal Years (Accrual basis of accounting) Fiscal Year 2008 2009 2010 2011 2012 Governmental activities: Invested in capital assets, net of related debt $ 130,071,108 $ 130,581,499 $ 141,095,551 $ 145,841,042 $ 139,795,930 Restricted 101,613,368 94,878,693 91,504,803 72,654,599 87,274,979 Unrestricted 3,641,173 14,213,503 15,828,208 13,402,969 7,245,370 Total governmental activities net assets $ 235,325,649 $ 239,673,695 $ 248,428,562 $ 231,898,610 $ 234,316,279 -117- CITY OF MOORPARK Changes in Net Assets Last Ten Fiscal Years (Accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 2007 Expenditures: 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 13,106,843 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 26,485,921 34,815,041 Program revenues: Charges for services: General government 509,401 1,407,130 2,010,540 2,201,590 191,674 Public safety 708,392 369,795 344,019 340,341 598,500 Public services 2,166,168 4,181,363 2,776,976 4,163,781 6,612,769 Parks and recreation 322,772 536,238 501,283 536,166 604,904 Total charges for services 3,706,733 6,494,526 5,632,818 7,241,878 8,007,847 Operating contributions and grants 5,440,099 4,077,849 2,313,834 3,237,143 4,489,945 Capital contributions and grants 4,131,439 4,731,311 4,633,166 18,027,831 38,337,638 Total governmental activities program revenues 13,278,271 15,303,686 12,579,818 28,506,852 50,835,430 Net program revenues(expenses) (3,448,074) (6,605,538) (9,287,645) 2,020,931 16,020,389 General revenues and other changes in net assets: 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) - - - County settlement - - - - - Extraordinary item-Gain on Dissolution of RDA _ _ _ _ _ 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 $ 20,562,078 $ 39,478,443 The City of Moorpark has elected to report retroactively back to the year the City (1)Mission Bell note -118- CITY OF MOORPARK Changes in Net Assets Last Ten Fiscal Years (Accrual basis of accounting) Fiscal Year 2008 2009 2010 2011 2012 Expenditures: General government $ 1,949,206 $ 2,041,596 $ 1,603,279 $ 3,201,184 $ 2,207,826 Public safety 6,882,072 7,035,384 7,016,015 7,070,049 6,158,455 Public services 20,580,204 18,170,325 13,589,878 31,775,462 11,134,822 Parks and recreation 4,551,045 4,470,524 4,934,002 4,658,717 5,704,208 Interest on long-term debt 1,773,841 1,616,843 1,504,502 1,492,604 354,412 Total governmental activities expenses 35,736,368 33,334,672 28,647,676 48,198,016 25,559,723 Program revenues: Charges for services: General government 283,576 232,926 258,431 293,008 407,883 Public safety 633,131 538,636 477,305 492,847 445,642 Public services 5,743,200 3,172,708 2,769,641 2,473,770 1,988,453 Parks and recreation 756,885 644,979 643,593 697,787 858,333 Total charges for services 7,416,792 4,589,249 4,148,970 3,957,412 3,700,311 Operating contributions and grants 7,113,883 6,172,315 4,128,842 5,999,168 3,702,582 Capital contributions and grants 5,481,972 3,326,778 1,970,931 1,703,076 2,770,701 Total governmental activities program revenues 20,012,647 14,088,342 10,248,743 11,659,656 10,173,594 Net program revenues(expenses) (15,723,721) (19,246,330) (18,398,933) (36,538,360) (15,386,129) General revenues and other changes in net assets: Taxes: Property tax 4,505,980 7,802,643 7,449,063 7,287,282 6,943,275 Property tax, Redevelopment Agency 6,887,079 7,054,432 6,864,777 6,755,960 3,389,064 Franchise tax 1,150,180 1,171,556 1,171,825 1,207,778 1,231,741 Sales tax 2,306,281 2,329,522 2,382,010 2,577,105 2,622,419 Sales tax in lieu 779,263 849,227 588,635 940,791 857,217 Motor vehicle in lieu 3,038,440 125,307 109,136 170,592 18,590 Investment income 2,491,856 2,875,649 853,074 856,413 1,206,622 Other 139,728 386,040 283,372 212,487 245,235 Gain on sale of property - - - - - Special item (1) - - - - - Countysettlement - 1,000,000 - - - Extraordinary item-Gain on Dissolution of RDA - - - - 356,845 Total governmental activities 21,298,807 23,594,376 19,701,892 20,008,408 16,871,008 Changes in net assets- governmental activities $ 5,575,086 $ 4,348,046 $ 1,302,959 $ (16,529,952) $ 1,484,879 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 -119- CITY OF MOORPARK Fund Balances of Governmental Funds Last Ten 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 Nonspendable - - - - - Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - - - - - 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 32,857,500 29,994,471 26,977,320 36,903,391 41,486,631 Capital projects funds 9,625,965 8,950,250 3,361,134 1,293,998 16,807,370 Debt Service funds (97,935) (891,297) (346,716) (321,425) 83,243 Non-major funds 7,146,987 10,651,331 8,272,652 9,724,941 8,693,969 Fund Balances: Nonspendable - - - - - Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - - - - - 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). -120- CITY OF MOORPARK Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) Fiscal Year 2008 2009 2010 2011 2012 General fund: Reserved $ 95,397 $ 373,209 $ 337,286 $ - $ - Unreserved 3,625,348 2,832,620 2,662,713 - - Nonspendable - - - 220,976 654,207 Restricted - - - - Committed - - - - Assigned - - - - Unassigned - - - 2,779,024 2,955,878 Total general fund $ 3,720,745 $ 3,205,829 $ 2,999,999 $ 3,000,000 $ 3,610,085 All other governmental funds: Reserved $ 35,103,620 $ 33,719,016 $ 38,208,807 $ - $ - Unreserved, reported in: Special revenue funds 42,761,089 37,278,628 32,207,690 - - Capital projects funds 39,098,065 35,699,829 33,735,939 - - Debt Service funds (1,025,927) 261,336 294,202 - - Non-major funds 13,384,413 25,043,397 25,335,288 - - Fund Balances: Nonspendable - - - 14,862,594 3,055,064 Restricted - - - 66,565,551 55,945,095 Committed - - - 795,208 783,281 Assigned - - - 28,849,138 30,892,276 Unassigned - - - (2,124,660) (2,047,164) Total all other governmental funds $ 129,321,260 $ 132,002,206 $129,781,926 $ 108,947,831 $ 88,628,552 The City of Moorpark has elected to report retroactively back to the year the City -121- CITY OF MOORPARK Changes in Fund Balances of Governmental Funds Last Ten 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 prop 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) County settlements - - - - - 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 Extraordinary Item - - - - - 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). -122- CITY OF MOORPARK Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) Fiscal Year 2008 2009 2010 2011 2012 Revenues: Taxes $ 15,392,269 $ 19,716,636 $ 18,730,771 $ 19,042,900 $ 16,147,175 Licenses and permits 72,951 645,010 598,370 587,186 561,530 Fines and forfeitures 358,665 484,930 436,377 441,543 446,426 Uses of money and property 5,684,111 3,114,881 1,547,229 1,537,255 1,381,412 Charges for services 677,277 3,813,159 3,284,275 2,579,593 3,559,454 Intergovernmental 7,549,040 3,948,059 2,629,132 4,786,235 1,627,462 Maintenance assessments 4,205,700 3,491,975 1,950,431 2,112,992 2,114,957 Franchise fees 301,514 - - - - Building and safety fees 530,761 - - - - Planning and public work fees 1,938,143 - - - - Development fees 4,501,837 - - - - Contributions from prop owners - - - - - Other 433,378 398,539 587,832 833,082 1,345,246 Total revenues 41,645,646 35,613,189 29,764,417 31,920,786 27,183,662 Expenditures Current: General government 1,835,801 1,926,283 1,497,916 2,289,299 890,396 Public safety 6,637,757 6,814,425 6,769,484 6,839,355 6,467,065 Public services 12,505,613 11,259,297 12,343,896 12,876,132 8,321,267 Parks and recreation 4,291,867 4,182,091 4,453,400 4,074,490 5,038,957 Capital outlay 14,682,017 8,100,604 5,548,179 24,506,524 4,679,053 Debt service: Principal 455,000 475,000 495,000 1,874,064 590,122 Interest 1,631,932 1,594,062 1,482,799 1,471,516 688,825 Bond issuance costs - - - - - Total expenditures 42,039,987 34,351,762 32,590,674 53,931,380 26,675,685 Excess of revenues over expenditures (394,341) 1,261,427 (2,826,257) (22,010,594) 507,977 Other financing sources(uses): Gain from sale of property - - - - - Bond Proceeds - - - - - Discount on Bonds - - - - - County settlements 1,000,000 - - - Transfers in 27,626,755 17,062,650 9,378,101 3,820,738 4,739,189 Transfers out (27,626,755) (17,062,650) (9,378,101) (2,644,238) (4,739,189) Total other financing sources(uses) - 1,000,000 - 1,176,500 - Extraordinary Item - - - - (19,553,234) Net change in fund balances $ (394,341) $ 2,261,427 $ (2,826,257) $(20,834,094) $(19,045,257) Debt service as a percentage of noncapital expenditures 8.3% 8.6% 7.9% 12.8% 6.2% The City of Moorpark has elected to report retroactively back to the year the City implemented GASB 34(June 30, 2003). -123- This page intentionally left blank CITY OF MOORPARK City Redevelopment Agency 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 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% 2008 4,558,597,806 173,209,606 45,607,510 4,777,414,922 809,452,407 102,442,198 4,276,693 916,171,298 1.050% 2009 4,700,305,496 174,181,146 46,351,377 4,920,838,019 828,244,210 102,730,045 4,309,164 935,283,419 1.050% 2010 4,619,910,655 180,988,669 46,474,508 4,847,373,832 825,093,781 113,302,525 4,333,240 942,729,546 1.050% 2011 4,659,133,835 153,090,627 46,689,455 4,858,913,917 813,947,565 110,905,079 4,436,801 929,289,445 1.053% 2012 4,662,536,870 118,452,976 46,220,250 4,827,210,096 829,750,375 76,258,253 4,422,902 910,431,530 1.061% Source: Ventura County Assessor's Office -124- CITY OF MOORPARK Direct and Overlapping Property Tax Rates (Rate per$100 of assessed value) Last Ten Fiscal Years 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 City Direct Rates: City basic rate 1.06072 1.05820 1.05020 1.05480 1.06163 1.04955 1.04950 1.05020 1.05300 1.06125 Redevelopment agency - - - - - - - - - - Total City Direct Rate 1.061 1.058 1.050 1.055 1.062 1.050 1.050 1.050 1.053 1.061 Overlapping Rates: Ventura County Flood Cont. 8.097 n/a n/a n/a n/a n/a n/a n/a n/a n/a Metropolitan Water District 2.340 0.233 0.232 0.235 0.233 0.234 0.230 0.230 0.233 0.232 Ventura Community College 4.312 4.311 4.269 4.331 4.296 4.361 4.371 4.402 4.383 4.373 Ventura County Waterworks n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Conejo Valley Unified School District 0.025 0.024 0.022 0.020 0.019 0.018 0.018 0.019 0.019 0.018 Moorpark Unified School District 91.733 91.959 92.121 92.442 92.313 92.417 92.240 91.924 91.820 92.126 City of Moorpark 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 City of Moorpark Community Facilities District No.97-1 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 City of Moorpark 1915 Act Bonds 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 Total Direct Rate 107.568 97.585 97.694 98.083 97.923 98.080 97.909 97.625 97.508 97.810 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. 3) The Total Direct Rate is comprised of its five components listed above, the Metropolitan Water District,Ventura Community College,Ventura County Waterworks,Conejo Valley Unified School District,and the Moorpark Unified School District. Source: California Municipal Statistics Ventura County Assessor -125- CITY OF MOORPARK Principal Property Tax Payers Current Year and Ten Years Ago 2012 2002 Percent of Percent of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value * Value Value Value DBRE Moorpark LLC $ 69,100,000 14.31% $ - 0.00% Waterstone Properties Moorpark LL 57,800,000 11.97% - 0.00% G & Y Moorpark LLC 25,678,784 5.32% - 0.00% Tuscany Square Partners LLC 24,214,523 5.02% - 0.00% Mission Bell West LP 23,381,785 4.84% 15,440,652 5.17% James Birkenshaw, Et. Al. 19,935,825 4.13% 15,344,223 5.14% Calabasas BCD Inc. 19,655,282 4.07% 16,529,990 5.54% SunBelt Enterprises LLC (prey. Kay 15,522,919 3.22% 24,486,100 8.20% Mission Bell East LLC 14,233,381 2.95% 15,565,585 5.21% Leonard Rose Trust 12,009,878 2.49% 10,198,021 3.42% $ 281,532,377 58.32% $ 97,564,571 32.67% * Due to varying tax rates, the assessed value does not necessarily mean the highest tax. The assessed value includes secured property tax revenue. Source: HdL 2011-2012 property data -126- CITY OF MOORPARK Secured Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Collections Fiscal Taxes Levied Fiscal Year of Levy from Total Collections Year Ended for the Percent Previous Percent June 30 Fiscal Year Amount of Levy Years Amount of Levy 2003 2,036,839 1,732,812 85.07% 77,316 $1,810,128 88.87% 2004 2,208,605 1,902,007 86.12% 84,452 $1,986,459 89.94% 2005 2,391,927 1,796,670 75.11% 87,669 $1,884,339 78.78% 2006 2,705,083 1,994,418 73.73% 93,157 $2,087,575 77.17% 2007 3,010,493 2,432,164 80.79% 124,057 $2,556,221 84.91% 2008 4,072,510 3,376,883 82.92% 145,134 $3,522,017 86.48% 2009 3,763,078 3,393,933 90.19% 208,491 $3,602,423 95.73% 2010 3,682,559 2,789,672 75.75% 262,057 $3,051,730 82.87% 2011 3,663,098 3,388,402 92.50% 184,044 $3,572,446 97.53% 2012 3,638,780 3,394,794 93.29% 162,584 $3,557,378 97.76% NOTE: The amount presented includes City property taxes only. It does not include redevelopment tax increment. Source: Ventura County Auditor Controller's Office Levy Letter Note: In FY 2007/08 $785,653 in adjustments (including the Library) were added to the Levy Letter -127- CITY OF MOORPARK Ratios of Outstanding Debt by Type Last Ten 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 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 2008 - 29,680,000 29,680,000 29,680,000 0.84% 803 2009 - 29,185,000 29,185,000 29,185,000 0.83% 787 2010 - 28,710,000 28,710,000 28,710,000 0.81% 764 2011 - 28,155,000 28,155,000 28,155,000 0.83% 811 2012 - 27,575,000 27,575,000 27,575,000 0.88% 792 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, 2011 is $4,995,000, $11,505,000 and $11,655,000 respectively. 2 These ratios are calculated using personal income and population for the prior calendar year. -128- CITY OF MOORPARK Ratio of General Bonded Debt Outstanding Last Ten 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 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 2008 - 29,680,000 29,680,000 0.52% 803 2009 - 29,185,000 29,185,000 0.50% 787 2010 - 28,710,000 28,710,000 0.50% 764 2011 - 28,155,000 28,155,000 0.49% 811 2012 - 27,575,000 27,575,000 0.48% 792 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. -129- CITY OF MOORPARK Direct and Overlapping Debt June 30, 2012 City Assessed Valuation 2011-12 $ 4,781,332,846 Redevelopment Agency Incremental Valuation 641,853,266 Adjusted Assessed Valuation $ 4,139,479,580 Estimated Share of Percentage Debt as of Overlapping Applicable 6/30/2012 Debt Direct and Overlapping Tax and Assessment Debt: Metropolitan Water District 0.232% $ 196,545,000 $ 455,984 Ventura Community College District 4.373% 310,868,691 13,594,288 Conejo Valley Unified School District 0.018% 25,908,896 4,664 Moorpark Unified School District 92.126% 59,009,983 54,363,537 City of Moorpark Community Facilities District No.97-1 100.000% 5,720,000 5,720,000 City of Moorpark Community Facilities District No.2004-1 100.000% 23,365,000 23,365,000 City of Moorpark 1915 Act Bonds 100.000% 1,330,000 1,330,000 Total Direct and Overlapping Tax&Assessment Debt 622,747,570 98,833,473 Overlapping General Fund Obligation Debt: Ventura County General Fund Obligations 4.372% $ 93,740,000 $ 4,098,313 Ventura County Superintendent of Schools COPs 4.372% 11,865,000 518,738 Moorpark Unified School District COPs 92.126% 8,300,000 7,646,458 Total Overlapping General Fund Obligation Debt 113,905,000 12,263,509 Combined Total Debt* $ 736,652,570 111,096,982 Total direct and overlapping debt $111,096,982 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. The overlapping district's assessed valuation located within the City is divided by the total assessed valuation of the overlapping district. That percentage is multiplied by the total debt outstanding for the overlapping district resulting in the City's share of debt. -130- CITY OF MOORPARK Legal Debt Margin Information Last Ten Fiscal Years 2003 2004 2005 2006 2007 Assessed valuation $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% Adjusted assessed valuation 705,931,822 705,931,822 807,854,735 930,397,948 1,039,340,008 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 105,889,773 105,889,773 121,178,210 139,559,692 155,901,001 Total net debt applicable to limit: General obligation bonds - - - - - Legal debt margin $ 105,889,773 $ 105,889,773 $ 121,178,210 $ 139,559,692 $ 155,901,001 Total debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% 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 -131- CITY OF MOORPARK Legal Debt Margin Information Last Ten Fiscal Years 2008 2009 2010 2011 2012 Assessed valuation $4,558,597,806 $4,700,305,496 $4,619,910,655 $4,659,133,835 $4,662,536,870 Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 1,139,649,452 1,175,076,374 1,154,977,664 1,164,783,459 1,165,634,218 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 170,947,418 176,261,456 173,246,650 174,717,519 174,845,133 Total net debt applicable to limit: General obligation bonds - - - - - Legal debt margin $ 170,947,418 $ 176,261,456 $ 173,246,650 $ 174,717,519 $ 174,845,133 Total debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% 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 -132- CITY OF MOORPARK Pledged-Revenue Coverage Last Ten Fiscal Years Tax Allocation Bonds Fiscal Year Ended Tax Debt Service June 30 Increment Principal Interest Coverage 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 2008 6,858,882 455,000 909,906 5.03 2009 7,010,760 475,000 1,397,922 3.74 2010 6,842,837 495,000 1,376,088 3.66 2011 6,716,136 555,000 1,350,874 3.52 2012 2,883,952 600,000 1,279,917 1.53 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. -133- CITY OF MOORPARK Demographic and Economic Statistics Last Ten Calendar Years Household Median Unemployment Calendar Population Income Household Rate Year (1) (in thousands) Income (2) (3) 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% 2008 36,971 3,526,775 95,393 5.7% 2009 37,086 3,508,076 94,593 10.3% 2010 37,576 3,565,248 94,881 10.6% 2011 34,710 3,385,509 97,537 10.0% 2012 34,826 3,150,987 90,478 8.7% Sources: (1) State Department of Finance or Community Development Department (2) California Desert Association of Realtors (3) State of California Employment Development Department -134- CITY OF MOORPARK Principal Employers Current and Ten Calendar Years Ago 2012 2002 Percent of Percent of Number of Total Number of Total Employer Employees Employment Employees Employment Moorpark Unified School District 1,147 6.60% 1,135 6.76% PennyMac 756 4.35% - 0.00% Moorpark College 608 3.50% 360 2.14% Pentair Pool Products 375 2.16% 407 2.42% Kavlico 400 2.30% 1,200 7.14% Target 175 1.01% - 0.00% AJ Machining 135 0.78% - 0.00% Boething Tree Farm 121 0.70% 135 0.80% American Board Assembly 87 0.50% 200 1.19% Kohl's 84 0.48% - 0.00% "Total Employment" as used above represents the total employment of all employers located within City limits. The total number of employees within the City limits in 2012 were 17,379 as compared to the total number of employees within the City limits in 2002 were 16,799. Source: Chamber of Commerce City-data.com Bureau of Labor Statistics -135- CITY OF MOORPARK Full-time and Part-time City Employees by Function Last Ten Fiscal Years Function 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 General government 43 33 32 31 30 26 26 26 27 28 Public safety (crossing guards) 6 7 4 7 7 7 6 5 5 3 Public services 38 20 17 17 26 22 22 20 16 18 Parks and recreation 19 42 38 41 49 54 56 55 54 51 Total 106 102 91 96 112 109 110 106 102 100 Public safety 1 30 28 31 31 42 42 38 38 40 39 1 Police and fire services were provided by the County. Fire = 18 and police = 22 Source: City of Moorpark, Finance department -136- CITY OF MOORPARK Operating Indicators by Function Last Ten Fiscal Years 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Police:(A) Arrests 1,296 1,520 1,388 1,653 1,890 1,732 1,412 2,207 1,266 1,158 Parking citations issued 2,582 4,285 3,706 2,890 4,160 2,860 3,254 4,969 4,887 5,704 Fire:(B) Number of"prime"emergency calls 1,179 1,415 1,308 1,329 1,351 1,362 1,100 1,945 1,707 2,174 Business Inspections* 117 125 125 125 123 130 143 115 196 196 Public works:(C) Street resurfacing(miles) 73.33 - 0.10 - 30.0 3.8 - 5.0 2.0 Parks and recreation:(D) Number of recreation classes 317 290 364 338 479 378 265 419 325 308 Prime calls and business inspections are for County of Ventura, Fire Department Station#42 * 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 Police Department. (B)Ventura County Fire Department. (C)Moorpark Public Works Department:-every six years,the City plans to resurface its streets, 1/3 every other year(total street miles=220) (D)Arroyo Vista Recreation Departmen:Active Adult Center. -137- CITY OF MOORPARK Capital Asset Statistics by Function Last Ten Fiscal Years 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Police: Stations 1 1 1 1 1 1 1 1 1 1 Fire: Fire stations 2 2 2 2 2 2 2 2 2 2 Public works: Streets (miles) 75 75 75 75 75 78 79 79 79 79 Streetlights 2,269 2,299 2,325 2,347 2,497 2,510 2,518 2,518 2,620 2,620 Traffic signals 16 17 17 17 17 20 20 20 21 21 Parks and recreation: Parks 15 15 15 16 16 16 17 18 18 18 Community centers 2 2 2 2 2 2 2 2 2 2 Source: City of Moorpark Of the streetlights, 2,612 are owned by Edison and 8 are owned by the City -138- This page intentionally left blank