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HomeMy WebLinkAboutACFR 2014 City of Moorpark f 0,......_,...„,t, ..,,.. California i t 1 46,4, , rf I „ti,,_..„„01. Comprehensive Annual Financial Report . 4iR A R ,rte 0 44 A Fiscal Year Ending June 30, 2014 CITY OF MOORPARK, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2014 Prepared By: Ron Ahlers, Finance Director Irmina Lumbad, Budget& Finance Manager City of Moorpark Comprehensive Annual Financial Report Year Ended June 30, 2014 TABLE OF CONTENTS PAGE I. INTRODUCTORY SECTION Letter of Transmittal i Directory of Officials vi Organizational Chart vii Certificate of Achievement of Excellence in Financial Reporting viii II. FINANCIAL SECTION Independent Auditor's Report 1 Management Discussion &Analysis 4 Basic Financial Statements: Government-wide Financial Statements Statement of Net Position 15 Statement of Activities 16 Fund Financial Statements Balance Sheet- Governmental Funds 17 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 21 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 26 Statement of Fiduciary Net Position 27 Statement of Changes in Fiduciary Net Position 28 Notes to Financial Statements 29 Required Supplementary Information: Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - General Fund 67 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual -Street and Traffic Safety Special Revenue Fund 70 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual—Assessment District Special Revenue Fund 71 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual— Parks & Pub. Fac. Special Revenue Fund 72 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - Los Angeles A.O.0 Special Revenue Fund 73 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual— Low-Mod Housing Asset Special Revenue Fund 74 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual— Prop 1B Special Revenue Fund 75 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual—Community Development Special Revenue Fund 76 City of Moorpark Comprehensive Annual Financial Report Year Ended June 30, 2014 TABLE OF CONTENTS -Continued PAGE Required Supplementary Information -Continued: Schedule of Funding Progress for MRHP 77 Notes to Required Supplementary Information 78 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 79 Non-Major Governmental Funds 80 Non-Major Governmental Funds - Combining Balance Sheet 82 Non-Major Governmental Funds - Combining Statement of Revenues, Expenditures and Changes in Fund Balance 88 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual: Library Services Special Revenue Fund 94 Traffic Safety Special Revenue Fund 95 City Affordable Housing Special Revenue Fund 96 Endowment Special Revenue Fund 97 Tierra Rejada-Spring Road Special Revenue Fund 98 State Gas Tax Special Revenue Fund 99 Art in Public Places Special Revenue Fund 100 State and Federal Assistance Special Revenue Fund 101 Local Transportation Transit Special Revenue Fund 102 Solid Waste Special Revenue Fund 103 Capital Projects Fund 104 City Hall Building Capital Projects Fund 105 Equipment Replacement Capital Projects Fund 106 Statement of Changes in Net position -Agency Funds 107 III. STATISTICAL SECTION Net position by Component- Last Ten Fiscal Years 108 Changes in Net Position Governmental Activities - Last Ten Fiscal Years 110 Fund Balances of Governmental Funds - Last Ten Fiscal Years 112 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 114 City of Moorpark Comprehensive Annual Financial Report Year Ended June 30, 2014 TABLE OF CONTENTS -Continued PAGE III. STATISTICAL SECTION -Continued Assessed Value and Estimated Actual Value of Taxable Property- Last Ten Fiscal Years 116 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 117 Principal Property Tax Payers- Current Year and Ten Years Ago 118 Property Tax Levies and Collections- Last Ten Fiscal Years 119 Ratios of Outstanding Debt by Type- Last Ten Fiscal Years 120 Ratio of General Bonded Debt Outstanding- Last Ten Fiscal Years 121 Direct and Overlapping Debt 122 Legal Debt Margin Information- Last Ten Fiscal Years 123 Pledged Revenue Coverage- Last Ten Fiscal Years 125 Demographic and Economic Statistics- Last Ten Calendar Years 126 Principal Employers-Current and Ten Calendar Years Ago 127 Full-Time and Part-Time City Employees by Function- Last Ten Fiscal Years 128 Operating Indicators by Function- Last Ten Fiscal Years 129 Capital Asset Statistics by Function- Last Ten Fiscal Years 130 INTRODUCTORY SECTION PQ P�4�� F / 9City f21oopar/ 0Rrto Jo' 799 Moorpark Avenue, Moorpark, California 93021 (805) 517-6200 fax(805) 532-2545 January 21, 2015 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, 2014. 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 Position that provides the total net position (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 Position 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 2013/14. 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 -I- 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 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 Authority was formed in 1993 as a joint powers authority between the City and the Redevelopment Agency of the City of Moorpark (Agency) in order to provide financial assistance to the City and the Agency by issuing debt and financing the construction of public facilities. The Agency is now dissolved, but the Authority still continues to exist. 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. SUCCESSOR AGENCY to the REDEVELOPMENT AGENCY of the CITY of MOORPARK 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. On February 1, 2012, the Agency was dissolved and the Successor Agency to the Redevelopment Agency of the City of Moorpark (Successor Agency) was created. The Successor Agency is included as a fiduciary fund (private purpose trust fund). 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, affordable housing, economic development, 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. -ii- 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 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, 2014. 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. -iii- 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 2013/2014 amounted to $29,619,442 and $14,821,366 respectively CASH MANAGEMENT The City Treasurer is responsible for investing cash temporarily idle during the year in accordance with the State Government Code and the Investment Policy adopted by the City Council. The City diversified its investment portfolio by utilizing several investment instruments. At fiscal year end June 30, 2014, approximately $33 million was invested with the Ventura County Pool; $57 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 $6 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 Position. 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, 2014 have a net ending balance of $260 million. LONG-TERM LIABILITIES/BONDED INDEBTEDNESS At June 30, 2014, the City has no outstanding bonds or other debt but does have long-term liabilities in the approximate amount of$651,829 for employee compensated absences (accrued leave). The City provides retirement benefits (pension) by contributing to the California Public Employees Retirement System (CaIPERS). The City pays 100% of the Annual Required Contributions (ARC), as calculated by CaIPERS. However, the retirement plan is not fully funded and the City is considering fully funding this plan in the near future. The City participates in the California Employers' Retiree Benefit Trust (CERBT) administered by CaIPERS to provide post-employment medical insurance to City retirees. The City accounts for this liability, per GASB 45, Other Post-Employment Benefits (OPEB). The most recent actuarial valuation was performed on June 30, 2013, and shows the OPEB liability is over 100% funded. The City has a "Net OPEB Asset" of$134,000 on the Statement of Net Position. Please read note 8 in the CAFR. -iv- 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 $3.3 million, $11.5 million and $11.5 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, 2013. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive 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, Malody & Scott, LLP, Certified Public Accountants for their professional assistance. As in the past, the CAFR is available on the City's website at www.MoorparkCA.gov. Respectfully submitted, arA. l / STEVEN KUENY RON AHLERS CITY MANAGER FINANCE DIRECTOR -v- e'-Rk cqt`� 6 0...... .".,04Ar 7 • fitiliiii, -.4ro 4:11/1111. a o� 004) / 17 Ift is. Fa \ \,,. .„ Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2014 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 Jeremy Laurentowski, Parks & Recreation Director Ron Ahlers, Finance Director -vi- ( N CITY OF MOORPARK Arts ORGANIZATION CHART Commission Parks and Honorable City Recreation Council City Attorney Commission (Contract) t' City Manager Planning • Business Registration Commission " - Eaonamia Dcvclapmcnt - Housing Programs • Siirrpscnr A0enr.y to the Pr Redevelopment Agency Library Roam] i Police Services (Contract) 1 [ ' Parks,Recreation '� ' Community Administrative ['flnimtlnit}r EngineeringfPublic Finance Development Services Services Works Department !Department Department Department Department • Building and Safely • (It,.Clerk • Art in Public Places • Assessment Lhstnctdtreet - 0.111 hildridiijiiieia • Code Compliance • Human Resources • Parks and Landscape Lighting - Cenral Services - Permit, - Ribk Meiieyrrrceni Meii Ilei iii ex. • Capital Piyetas - Fi nanoc and Aoacunting • Planning - Information Systems • Recreation • Crossing Guards - Fixed Assets Management - Cable Tcicvieian - Active Adult Center - NPDES - Piirrhacinp - Legislatiae Relations • Open Space • Parking Enforcement - Franchise Administration - Public Information Maintenance • Siraat&Mai ntananaa - Budget Development& - Intergovernmental • Faciliry Operations and • Transit Administration Relations Maintenance • Solid Waste&Recycling - Library • Property Management • Animal CcntrolNectar - Emergency Management -VII- Onvernmerit Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting City of 1lut►rpark California Annual fcx Ihe LIIdcd Ju rte 30. 2013 6,147- 'Viii' FINANCIAL SECTION RA ROGERS,ANDERSON, MALODY&SCOTT, LLP M ^ CERTIFIED PUBLIC ACCOUNTANTS,SINCE 1948 735 E.Carnegie Dr. Suite 100 San Bernardino,CA 92408 Independent Auditor's Report 909 889 0871 T 909 889 5361 F ramscpa.net The Honorable City Council PARTNERS City of Moorpark, California Brenda L. Odle, CPA,MST Terry P.Shea,CPA Report on the financial statements Kirk A. Franks,CPA Scott W. Manno,CPA,CGMA We have audited the accompanying financial statements of the government Leena Shanbhag, CPA,MST,CGMA activities, each major fund, and the aggregate remaining fund information of the Jay H. Zercher,CPA(Partner Emeritus) City of Moorpark (City), California, as of and for the year ended June 30, 2014, Phillip H.Waller,CPA(Partner Emeritus) and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. MANAGERS/STAFF Bradferd A.Welebir,CPA.MBA ons emen Mana t's responsibility for the financial statements Jenny Liu,CPA,MST g p y Seong-Hyea Lee,CPA,MBA Charles De Simoni,CPA Management is responsible for the preparation and fair presentation of these Yiann Fang,CPA financial statements in accordance with accounting principles generally accepted Nathan Statham,CPA,MBA in the United States of America; this includes the design, implementation, and Brigitta Bartha,CPA maintenance of internal control relevant to the preparation and fair presentation Gardenya Duran,CPA of financial statements that are free from material misstatement, whether due to Juan Romero,CPA Ivan Gonzales,CPA,MSA fraud or error. Brianna Pascoe,CPA Auditor's responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant MEMBERS to the entity's preparation and fair presentation of the financial statements in American Institute of order to design audit procedures that are appropriate in the circumstances, but Certified Public Accountants not for the purpose of expressing an opinion on the effectiveness of the entity's POPS The AICPA Alliance internal control. Accordingly, we express no such opinion. An audit also includes for CPA Firms evaluating the appropriateness of accounting policies used and the Governmental Audit reasonableness of significant accounting estimates made by management, as Quality Center well as evaluating the overall presentation of the financial statements. California Society of We believe that the audit evidence we have obtained is sufficient and appropriate Certified Public Accountants to provide a basis for our audit opinions. -1- STABILITY. ACCURACY. TRUST. 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 of Moorpark, California, as of June 30, 2014, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of matter Implementation of new pronouncement As discussed in Note 1 of the financial statements, the City adopted the provisions of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinions are not modified with respect to this matter. Other matters Required supplementary information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information and the schedule of funding progress as listed in the table of contents 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 provide any assurance. Other information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Moorpark, California's basic financial statements. The introductory section, the combining and individual nonmajor fund financial statements, the budgetary comparison schedules, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and the budgetary comparison schedules 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. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements 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 to the basic financial statements as a whole. -2- The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other reporting required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 21, 2015, 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 in considering City's internal control over financial reporting and compliance. 4.91.A.d...) C &c( W a n_ OODtLy So,r, L Lla San Bernardino, CA January 21, 2015 -3- This page intentionally left blank CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 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, 2014. 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 2013/14 by $361,327,598 (Net Position). Of this amount, $15,655,932 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 defines "Net Position" as assets less liabilities. GASB requires the City to record infrastructure assets (streets, parks, buildings, etc.) less accumulated depreciation as a restricted fund balance titled, "Invested in Capital Assets" ($259,798,991). Restrictions for Special Revenue Funds amounts to $85,872,675, this reduces the Total Net Position to the Unrestricted Net Position ($15,655,932). The Statement of Net Position is presented on page 15. • The City's Total Net Position increased by $6,888,535 during the current fiscal year. The Statement of Activities is presented on page 16. • As of June 30, 2014, the City's governmental funds (General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds) reported combined ending fund balances of $98,342,858, an increase of $8,360,563, from the prior year. The increase is a result of developer fee revenues due to increased building activity within the City. • At the end of the current fiscal year, fund balances for the General Fund were $3,635,899 ($635,899 is in nonspendable form, and $3,000,000 is unassigned). 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 Position and the Statement of Activities. The governmental activities of the City include general government, public safety, public services, parks and recreation, debt service, and interest on debt. The City does not have any business-type activities. -4- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 The Statement of Net Position presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Over time, increases and decreases in net position 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 position changed during the most recent fiscal year. All changes in net position 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 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 Redevelopment Agency of the City of Moorpark (Agency) was dissolved on February 1, 2012 as legislated in Assembly Bill x1 26. Its Successor Agency is shown as a Private Purpose Trust Fund (pages 27-28). The government-wide financial statements can be found on pages 15 and 16 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, Affordable Housing, Los Angeles Area of Contribution, Low and Moderate Income Housing Asset, Police Facilities Fee, and Special Projects, 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. -5- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 The City adopts an annual budget for all its funds. A budgetary comparison statement is provided for all funds with an annually adopted budget to demonstrate compliance with their respective budgets. The budgetary comparison statements are located in the basic financial statements. The non-major governmental fund budgetary comparisons are located in the non-major governmental funds section of the report. Fiduciary Funds. Fiduciary funds, which consist solely of trust and agency funds, are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of the fund are not available to support the City's own programs. Fiduciary funds are custodial in nature and, therefore, the accounting used does not involve the measurement of the results of operations. The basic fiduciary fund financial statement can be found on pages 27-28 of this report. The assets, liabilities, net position and operations of the dissolved 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 29-66 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS The City has continued to present its financial statements under the reporting model required by GASB 34. A comparative analysis of the government-wide data has been included in this report. As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $361 million at the close of the current fiscal year. The City's net investment in capital assets, net of related debt reflects a positive $260 million. As shown on Table 1, the largest portion of the City's net position (72%) is its investment in capital assets. The City uses these capital assets (parks, streets, sidewalks, rights of way etc.) to provide services to citizens; consequently, these assets are not available for future spending. An additional portion of the City's net position (24%) represents resources that are subject to external restrictions on how they may be used. The major restrictions on net position are funding source restrictions. The remaining balance of total net position (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, 2014, the City reported positive balances in all three categories of net position, both for the City as a whole, as well as for its separate governmental activities. -6- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 Table 1 Net Position Governmental Activities As of June 30, 2014 and 2013 2014 2013 Assets: Current and other assets $ 104,830,895 $ 95,273,076 Capital Assets 259,798,991 262,271,564 Total Assets: 364,629,886 357,544,640 Liabilities: Other liabilities 3,302,288 3,105,577 Total Liabilities: 3,302,288 3,105,577 Net Position: Net invested in capital assets 259,798,991 262,271,564 Restricted 85,872,675 82,125,331 Unrestricted 15,655,932 10,042,168 Total Net Position, as restated $ 361,327,598 $ 354,439,063 The City's net position increased by $6.9 million during the current fiscal year as a result of increase development activity within the City. -7- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 Table 2 Changes in Net Position Governmental Activities For the Years Ended June 30, 2014 and 2013 2014 2013 Revenues: Program Revenues: Charges for services $ 13,859,658 $ 6,525,531 Operating contributions and grants 4,364,461 3,533,608 Capital contributions and grants 2,010,143 1,879,634 General Revenues: Property taxes, levied for general purposes 6,841,765 6,776,729 Franchise taxes 1,222,759 1,222,956 Sales taxes 2,695,884 2,730,871 Sales taxes in lieu 1,089,362 875,160 Motor vehicle in lieu tax, unrestricted 15,942 19,262 Investment income 1,153,683 142,222 Other 492,755 299,730 Total Revenues: 33,746,412 24,005,703 Expenses: General government 2,169,069 4,149,965 Public safety 6,882,753 6,550,936 Public services 11,779,873 9,948,865 Parks and recreation 6,026,182 5,755,528 Total Expenses: 26,857,877 26,405,294 Increase (decrease) in net position 6,888,535 (2,399,591) Net position, beginning of year, as restated 354,439,063 356,838,654 Net position, end of year $ 361,327,598 $ 354,439,063 -8- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 Program Revenues Capital Contributions and Grants,10% ,,.,, Operating, Chargo for Contributions and ryiF?I''ricos,63 Grants,22% General Revenues Motor vehicle in lieu tax Investment 1% income Other a% f 4% Salmi tax in lieu ry ` PiFA�,,o tv L�x4' 51' . Sales taxes 20% Franchise taxes 6% -9- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 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 $98,342,858. This is an increase of$8,360,563 in comparison with the prior year. $10,889,688 or 11% is nonspendable, $49,389,385 or 50% is restricted to specific purpose, $698,395 or 1% is committed, $36,190,577 or 37% is assigned and $1,174,813 or 1% 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 $3,635,899, which increased by $723 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 25% of total General Fund expenditures and transfers out. This is a healthy reserve. Key factors for revenues and expenses when compared to fiscal year 2012/13 are as follows: • The City's property tax revenues increased by $65,037 or 1.0%. • Sales tax revenues decreased by approximately$34,987 or 1.3%. • The Sales Tax Compensation or "triple flip" increased by $214,202 or 24.5%. This year the City received amounts due from the prior years. • Interest earnings increased by $258,166 or 320% due to market value losses in the prior years and a correction in last year's calculation. • Expenditures and transfers out ended the year approximately $0.7 million more than the prior year figure due to increased spending in capital outlay and policing. -10- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 Street and Traffic Safety Fund (Includes the Traffic System Management Fund, City-Wide Traffic Mitigation Fund and Crossing Guard Fund) The fund balance of the Street and Traffic Safety Fund increased by $1.7 million due to increased fees by new development within the City. Assessment District Fund The fund balance of the Assessment District Fund decreased by $434,147 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. Parks/Public Facilities Fund The fund balance of the Parks/Public Facilities Fund increased by $1.1 million from the prior year due to increased fees by new development within the City. Los Angeles Area of Contribution Fund The fund balance of the Los Angeles Area of Contribution Fund increased by $788,282 from the prior year due to increased fees by new development within the City. Low and Moderate Income Housing Asset Fund The City elected to become the Successor Housing Agency and created the Low and Moderate Income Housing Asset Fund for this purpose. There was little activity this past year. Prop 1B Local Streets and Roads Fund This fund received a grant in the amount of approximately $1.1 million for the purchase of two CNG busses and the expansion of the Moorpark Metrolink North Parking. Community Development Fund This fund experienced a dramatic increase in fees and activities due to new housing development within the City. Police Facilities Fee Fund The fund balance of the Police Facilities Fund improved by $201,025 from the prior year. These funds are derived from new construction fees and transferred to the Endowment Fund as payback for the loan to construct the Police Services Center. Special Projects Capital Projects Fund Per City Council Policy, the General Fund transferred fund balance in excess of $3 million to the Special Projects Capital Projects Fund. This amount was $412,098 this past year. The Special Projects Fund transferred about $1.8 million to fully fund the Equipment Replacement Fund. The June 30, 2014 fund balance is about$25.5 million • -11- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 Non-Major Governmental Funds The fund balance of all other Non-Major Governmental Funds grew by $6.3 million from the previous fiscal year due to the transfer of $1.8 million to the Equipment Replacement Fund and increased fees from new development within the City. The Equipment Replacement Fund is currently fully funded with a fund balance of$2.4 million. 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, 2014, were revenues exceeding expenditures by approximately $2.5 million which was transferred to the Special Projects Fund. Revenues plus Transfers In were $402,796 more than the budget and expenditures plus Transfers Out ended the year under budget by $2.2 million. CAPITAL ASSET AND LONG-TERM LIABILITIES Capital Assets. The City's investment in capital assets as of June 30, 2014, amounted to $260 million (net of accumulated depreciation). This investment, detailed in Table 3, includes land, rights of way, 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 $2.5 million. Table 3 Capital Assets (net of depreciation) Governmental Activities As of June 30, 2014 and 2013 2014 2013 Land $ 39,380,903 $ 39,380,903 Rights of Way 123,066,830 123,066,830 Construction in Progress 10,529,962 9,681,261 Buildings and inprovements 27,733,353 28,807,241 Machinery and equipment 2,481,206 2,637,862 Infrastructure 56,606,737 58,697,467 Total $ 259,798,991 $ 262,271,564 -12- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 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 to 49 of this report. Long-term Liabilities At the end of the current fiscal year, the City's long-term liabilities outstanding are $651,829, which is the employee compensated absences payable. Additional information on the City's long-term liabilities can be found in Note 6 on page 49 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, parks and landscape maintenance and the Ventura County Sheriff's Contract continue to exceed revenue gains. The State's "Triple Flip" payment plan remains in effect as the State attempts to repay the $15 billion deficit reduction bonds from FY 2004-05. 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 on December 29, 2011, the California Supreme Court issued their ruling upholding the constitutionality of ABx1 26; thereby all redevelopment agencies within the State of California are abolished. For fiscal year 2014/15, the City took into consideration the following factors in preparing the budget: • Sales Tax revenues assume a 3% increase from fiscal year 2013/14. • Property Tax and Vehicle License fees revenue are projected to increase slightly. • Interest income will remain stable at an average rate of return of just over 1%. • Increase of 0.75% in PERS employer retirement rate from 10.282% to 11.032% effective July 1, 2014. • Increase in employee compensation from a general 1% cost of living adjustment and increases in medical insurance premiums. • Projections indicate our cost for general liability and workers compensation insurance will both increase for fiscal year 2014/15 when compared to fiscal year 2013/14 actual payments. -13- CITY OF MOORPARK MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 A priority of the City is to maintain high quality of services while adopting a balanced budget. As in prior years, the fiscal year 2014/15 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 www.MoorparkCA.gov. -14- This page intentionally left blank BASIC FINANCIAL STATEMENTS City of Moorpark Statement of Net Position June 30, 2014 Governmental Activities ASSETS Cash and investments $ 92,380,585 Receivables, net: Accounts 1,406,956 Interest 217,394 Prepaid items 54,506 Net OPEB asset 134,000 Property held for resale 8,096,221 Long term notes receivables 2,541,233 Capital assets, net of accumulated depreciation Land 39,380,903 Rights of way 123,066,830 Construction in progress 10,529,962 Buildings and improvements 27,733,353 Machinery and equipment 2,481,206 Infrastructure 56,606,737 Total assets 364,629,886 LIABILITIES Accounts payable and accrued liabilities 2,650,459 Noncurrent liabilities: Due within one year 40,096 Due in more than one year 611,733 Total liabilities 3,302,288 NET POSITION Net investment in capital assets 259,798,991 Restricted for: Public services 66,077,650 Recreation services 4,832,755 Public safety 379,229 Housing activities 14,583,041 Unrestricted 15,655,932 Total net position $ 361,327,598 The accompanying notes are an integral part of these financial statements. - 15 - This page intentionally left blank City of Moorpark Statement of Activities Year Ended June 30, 2014 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 $ 2,169,069 $ 1,474,249 $ - $ - $ (694,820) Public safety 6,882,753 2,657,332 - - (4,225,421) Public services 11,779,873 7,815,032 4,364,461 2,010,143 2,409,763 Parks and recreation 6,026,182 1,913,045 - - (4,113,137) Total governmental activities 26,857,877 13,859,658 4,364,461 2,010,143 (6,623,615) Total primary government $ 26,857,877 $ 13,859,658 $ 4,364,461 $ 2,010,143 General revenues: Taxes: Property tax,levied for general purpose 6,841,765 Franchise tax 1,222,759 Sales tax 2,695,884 Sales tax in lieu 1,089,362 Motor vehicle in lieu tax,unrestricted 15,942 Investment income 1,153,683 Other 492,755 Total general revenues 13,512,150 Change in net position 6,888,535 Net position,beginning of year 354,439,063 Net position,end of year $ 361,327,598 The accompanying notes are an integral part of these financial statements. - 16 - City of Moorpark Balance Sheet Governmental Funds June 30, 2014 Special Revenue Street and Assessment General Traffic Safety Districts ASSETS Cash and investments $ 3,341,725 $ 19,809,297 $ 5,363,230 Receivables: Accounts 904,896 - 34,412 Interest 71,690 47,984 14,418 Notes and loans - - - Due from other funds - - - Prepaid items 24,815 10,156 - Property held for resale 611,084 - - Total assets $ 4,954,210 $ 19,867,437 $ 5,412,060 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 1,292,672 $ 141,143 $ 247,821 Due to other funds - - - Unavailable revenues 25,639 - 433 Total liabilities 1,318,311 141,143 248,254 Deferred inflows of resources: Deferred loans - - - Fund balances: Nonspendable 635,899 10,156 - Restricted - 19,716,138 5,163,806 Committed - -Assigned - - - Unassigned 3,000,000 - - Total fund balances (deficit) 3,635,899 19,726,294 5,163,806 Total liabilities, deferred inflows of resources and fund balances $ 4,954,210 $ 19,867,437 $ 5,412,060 The accompanying notes are an integral part of these financial statements. - 17 - Continued Special Revenue Los Angeles Low-Mod Prop 1B Parks/Public Area of Income Local Streets Community Facilities Contribution Housing Asset and Roads Development $ 3,146,934 $ 11,599,777 $ 233,448 $ 1,098,574 $ 577,653 - - - - 648 6,462 28,294 2,155 384 - 431,674 1,953,642 - - - 177,006 - - - - - - - 19,535 - - 7,429,564 - - $ 3,153,396 $ 12,236,751 $ 9,616,654 $ 1,100,729 $ 598,220 $ 5,069 $ 40,084 $ - $ - $ 597,630 932,848 - - - - - - 11,750 1,091,037 573 937,917 40,084 11,750 1,091,037 598,203 - 431,675 1,953,060 - - - 177,006 7,429,564 - - 2,215,479 11,587,986 222,280 9,692 - - - - - 17 2,215,479 11,764,992 7,651,844 9,692 17 $ 3,153,396 $ 12,236,751 $ 9,616,654 $ 1,100,729 $ 598,220 - 18 - City of Moorpark Balance Sheet, (continued) Governmental Funds June 30, 2014 Capital Projects Nonmajor Police Special Governmental Facilities Projects Funds ASSETS Cash and investments $ 304 $ 24,549,778 $ 22,659,865 Receivables: Accounts - - 467,000 Interest 157 - 45,850 Notes and loans - - 155,917 Due from other funds - 932,848 1,648,642 Prepaid items - - - Property held for resale - - 55,573 Total assets $ 461 $ 25,482,626 $ 25,032,847 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ - $ 326,040 Due to other funds 1,648,642 - 177,006 Unavailable revenues - - 39,994 Total liabilities 1,648,642 - 543,040 Deferred inflows of resources: Deferred loans - - 149,417 Fund balances: Nonspendable - 932,848 1,704,215 Restricted - - 10,474,004 Committed - - 698,395 Assigned - 24,549,778 11,640,782 Unassigned (1,648,181) - (177,006) Total fund balances (deficit) (1,648,181) 25,482,626 24,340,390 Total liabilities, deferred inflows of resources and fund balances $ 461 $ 25,482,626 $ 25,032,847 The accompanying notes are an integral part of these financial statements. - 19 - Continued Total Governmental Funds $ 92,380,585 1,406,956 217,394 2,541,233 2,758,496 54,506 8,096,221 $ 107,455,391 $ 2,650,459 2,758,496 1,169,426 6,578,381 2,534,152 10,889,688 49,389,385 698,395 36,190,577 1,174,813 98,342,858 $ 107,455,391 - 20 - This page intentionally left blank City of Moorpark Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2014 Fund balances of governmental funds $ 98,342,858 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 259,798,991 Long-term notes and loans receivable are not current financial resources and, therefore, are deferred in the governmental funds. 2,534,152 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. 1,169,426 Long term liabilities are not due and payable in the current period and, therefore, are not reported in funds. Compensated absences payable (651,829) 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. 134,000 Net position of governmental activities $ 361,327,598 The accompanying notes are an integral part of these financial statements. - 21 - City of Moorpark Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended June 30, 2014 Special Revenue Street and Assessment General Traffic Safety Districts REVENUES Taxes $ 11,849,770 $ - $ - Licenses and permits 129,351 - - Fines and forfeitures 221,495 -Use of money and property 610,465 274,971 77,785 Charges for services 1,247,745 2,243,108 7,592 Intergovernmental 69,036 - - Maintenance assessments - - 1,958,856 Other revenue 281,834 - 4,374 Total revenues 14,409,696 2,518,079 2,048,607 EXPENDITURES Current: General government 1,725,569 - - Public safety 6,303,971 - - Public services 1,935,529 350,437 375,637 Parks and recreation 1,589,008 - 3,735,502 Capital Outlay 389,219 358,254 5,823 Total expenditures 11,943,296 708,691 4,116,962 Excess (deficiency) of revenues over(under) expenditures 2,466,400 1,809,388 (2,068,355) OTHER FINANCING SOURCES (USES) Transfers in - - 1,634,208 Transfers out (2,465,677) (75,233) - Total other financing sources (uses) (2,465,677) (75,233) 1,634,208 Net change in fund balances 723 1,734,155 (434,147) Fund balances, beginning of year 3,635,176 17,992,139 5,597,953 Fund balances (deficit), end of year $ 3,635,899 $ 19,726,294 $ 5,163,806 The accompanying notes are an integral part of these financial statements. - 22 - Continued Special Revenue Los Angeles Low-Mod Prop 1B Parks/Public Area of Income Local Streets Community Facilities Contribution Housing Asset and Roads Development $ $ $ $ $ 1,150,268 4,766 46,523 150,907 3,123 9,692 - 1,168,224 913,758 4,950 - 1,344,555 855 1,214,747 1,064,665 8,073 9,692 2,500,444 459 - - 39,728 - - 2,918,166 16,650 - - - - 24,283 236,655 - - 1,733 40,933 276,383 459 - 2,919,899 1,173,814 788,282 7,614 9,692 (419,455) 419,372 (102,021) - - - - (102,021) - - - 419,372 1,071,793 788,282 7,614 9,692 (83) 1,143,686 10,976,710 7,644,230 - 100 $ 2,215,479 $ 11,764,992 $ 7,651,844 $ 9,692 $ 17 - 23 - City of Moorpark Statement of Revenues, Expenditures, and Changes in Fund Balances, (continued) Governmental Funds Year Ended June 30, 2014 Capital Projects Non major Police Special Governmental Facilities Projects Funds REVENUES Taxes $ - $ - $ 1,082,211 Licenses and permits - - - Fines and forfeitures - - 199,583 Use of money and property 760 43,872 315,599 Charges for services - - 3,855,402 Intergovernmental - 18,023 3,170,764 Maintenance assessments 200,265 - - Other revenue - - 151,549 Total revenues 201,025 61,895 8,775,108 EXPENDITURES Current: General government - - 20,000 Public safety - - 339,579 Public services - - 3,507,354 Parks and recreation - - 13,441 Capital Outlay - 564,471 Total expenditures - - 4,444,845 Excess (deficiency) of revenues over(under) expenditures 201,025 61,895 4,330,263 OTHER FINANCING SOURCES (USES) Transfers in - 412,098 2,252,366 Transfers out - (1,763,551) (311,562) Total other financing sources (uses) - (1,351,453) 1,940,804 Net change in fund balances 201,025 (1,289,558) 6,271,067 Fund balances, beginning of year (1,849,206) 26,772,184 18,069,323 Fund balances (deficit), end of year $ (1,648,181) $ 25,482,626 $ 24,340,390 The accompanying notes are an integral part of these financial statements. - 24 - Continued Total Governmental Funds $ 12,931,981 1,279,619 425,844 1,533,697 10,785,334 3,257,823 2,159,121 438,612 32,812,031 1,746,028 6,643,550 9,126,851 5,354,601 1,580,438 24,451,468 8,360,563 4,718,044 (4,718,044) 8,360,563 89,982,295 $ 98,342,858 - 25 - 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, 2014 Net change in fund balance-total governmental funds $ 8,360,563 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: Repairs and Maintenance Capital Outlay Capital outlays and other capital expenditures $ 463,386 $ 1,117,052 Depreciation expense (3,445,305) Asset disposals (144,320) (2,472,573) Long-term notes and loans receivable are reported as expenditures when made and 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. (30,618) Revenues that are measurable but not available are not recorded as revenues under the modified accrual basis of accounting. 934,381 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 $ (37,218) Increase in OPEB asset 134,000 Change in net position of governmental activities $ 6,888,535 The accompanying notes are an integral part of these financial statements. - 26 - City of Moorpark Statement of Fiduciary Net Position June 30, 2014 Successor Agency Private Purpose Agency Trust Fund Fund ASSETS Cash and investments $ 2,928,438 $ 4,009,866 Cash and investments with fiscal agent 4,098,910 7,437,190 Receivable: Accounts 560,000 61,070 Prepaid insurance premium 208,648 Land held for resale 11,402,135 - Contruction in progress 119,736 - Capital assets, net 9,049,372 - Total assets 28,367,239 $ 11,508,126 LIABILITIES Accounts payable 327,028 $ 236,241 General deposits - 3,773,654 Bonds payable -due within one year 665,000 - Bonds payable -due in more than one year 25,670,000 - Amortizable charge - liability (244,049) - Due to bondholders - 7,498,231 Total liabilities 26,417,979 $ 11,508,126 NET POSITION Held in trust for the Successor Agency $ 1,949,260 The accompanying notes are an integral part of these financial statements. - 27 - City of Moorpark Statement of Changes in Fiduciary Net Position Private Purpose Trust Fund - Successor Agency Year Ended June 30, 2014 Successor Agency Private-Purpose Trust Fund ADDITIONS RPTTF distribution $ 2,505,623 Investment earnings 98,957 Other receipts 3,496 Total additions 2,608,076 DEDUCTIONS Debt service payments - interest 1,258,151 Depreciation 193,881 Amortization of deferred charges 20,120 Other payments 324,390 Property maintenance 1,293 Total deductions 1,797,835 Change in net position 810,241 Net position, beginning of year, as restated (see Note 15) 1,139,019 Net position, end of year $ 1,949,260 The accompanying notes are an integral part of these financial statements. - 28 - City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 NOTEDESCRIPTION PAGE 1 Summary of Significant Accounting Policies 29 2 Cash and Investments 38 3 Notes and Loans Receivable 44 4 Interfund Transactions 46 5 Capital Assets and Depreciation 48 6 Long-Term Liabilities 49 7 Retirement Plan 50 8 Other Post Employment Benefits 51 9 Conduit Debt - Revenue Bonds 53 10 Special Assessment Bonds 54 11 Risk Management 55 12 Classification of Net Position and Fund Balance 57 13 Commitments and Contingencies 61 14 Successor Agency - Fiduciary Private Purpose Trust Fund 62 15 Restatement of Net Position 66 16 Subsequent Event 66 This page intentionally left blank City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 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 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 PFA was formed in 1993 as a joint powers authority between the City and the former Moorpark Redevelopment Agency (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 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 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. The PFA and IDA were inactive during the fiscal year ended June 30, 2014. -29- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) A) Reporting Entity, (continued) The following specific criteria were used in determining that the PFA and the IDA are "blended" component unit: 1) The members of the City Council also act as the governing body of the PFA, and the IDA. 2) The City, the PFA, and the IDA are financially interdependent. 3) The PFA, and the IDA are managed by employees of the City. The 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 balance, 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, 2014 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) C) Description of Funds, (continued) 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 Types: 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 14). D) Basis of Accounting and Measurement Focus Government-Wide Financial Statements The City's Government-Wide Financial Statements include a Statement of Net Position 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 Position. The Statement of Activities presents changes in net position. 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 contributions and grants. 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, 2014 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. Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted-net position and unrestricted-net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City's policy to consider restricted-net position to have been depleted before unrestricted-net position is applied. 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 position presented in the Government-wide Financial Statements. The City has presented all major funds that met qualifications of GASB Statement No. 34. 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. Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted, committed, assigned and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City's policy to consider restricted fund balance to have been depleted before using any of the unrestricted components of fund balance. -32- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D) Basis of Accounting and Measurement Focus, (continued) Furthermore, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 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. 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 Parks and 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 development fees. 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 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 former Redevelopment Agency. Proposition 1B Local Streets and Roads Special Revenue Fund is used to account for funds received from the State of California Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Proposition 1 B) for specified purposes, such as public transit and passenger rail improvements; local street and road improvement; congestion relief and traffic safety projects. Community Development Special Revenue 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. 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. -33- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D) Basis of Accounting and Measurement Focus, (continued) 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 balance monies in excess of $3,000,000. Fiduciary Funds Financial Statements Fiduciary Funds Financial Statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. 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. 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 (if 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 General Fund, Low and Moderate Income Housing Asset Fund and City Affordable Housing Fund, represent 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, 2014 was $8,096,221. -34- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 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) Unavailable Revenue Unavailable revenue is recorded for monies collected in advance that have not been earned. In the fund financial statements revenue is also unavailable when the availability criteria has not been met. As of June 30, 2014, unavailable revenue in the Governmental Funds amounted to $1,169,426. I) Long-Term Debt In the statement of net position of the government-wide financial statements, long-term debt and other obligations are reported as liabilities. The balance showed as outstanding represents compensated absences payable at June 30, 2014. -35- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 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 720 hours or annual leave up to a maximum of 744 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, 2014, 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, 2014 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) Implementation of new GASB pronouncement Effective July 1, 2013, the City adopted the provisions of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. GASB 65 establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. Deferred amounts resulting from the refunding of debt are reported as a deferred outflow of resources or a deferred inflow of resources and recognized as a component of interest expense in a systematic and rational manner over the remaining life of the old debt or the life of the new debt, whichever is shorter. Accordingly, the Private Purpose Trust Fund's deferred amount on refunding of debt has been classified as a deferred outflow of resources in the Private Purpose Trust Fund's statement of net position in conformity with GASB 65. GASB 65 amended prior guidance with respect to the treatment of debt issuance costs. Under GASB 65, debt issuance costs, except any portion related to prepaid insurance costs, are recognized as an expense in the period incurred rather than reported as an asset on the statement of net position and recognized as an expense in a systematic and rational manner over the duration of the related debt. Accordingly, as noted in Note 15 of the financial statements, the City has restated Private Purpose Trust Fund's beginning net position for any unamortized debt issuance costs previously reported on the Private Purpose Trust Fund's statement of net position in conformity with GASB 65. -37- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 2) CASH AND INVESTMENTS Cash and investments at June 30, 2014, consisted of the following: City Treasury Deposits Demand Deposits $ 5,584,900 Cash on Hand 1,750 Total City Treasury Deposits 5,586,650 City Treasury Investments Local Agency Investment Fund (LAIF) 3,030,840 Ventura County Pool 33,498,069 Highmark Money Market 147,080 U.S. Treasury Notes 3,036,340 U.S. Agency Securities: Federal National MTG Association 18,103,670 Federal Home Loan Bank 13,185,940 Federal Farm Credit Bank 7,112,420 Federal Home Loan MTG Corporation 10,103,460 Federal Agricultural MTG Corporation 5,514,420 Total City Treasury Investments 93,732,239 Cash and Investments With Fiscal Agent Money Market 9,753,788 US Treasury Notes 1,197,637 Guaranteed Investment Contracts 584,675 Total Cash and Investments With Fiscal Agent 11,536,100 Total Cash and Investments $ 110,854,989 Cash and Investments are reported in the basic financial statements as follows: Statement of Statement of Fiduciary Net Position Net Position Governmental Private Purpose Agency Fund Total Activities Trust Fund Cash and investments $ 92,380,585 $ 2,928,438 $ 4,009,866 $ 99,318,889 Cash and investments with fiscal agent - 4,098,910 7,437,190 11,536,100 Total $ 92,380,585 $ 7,027,348 $ 11,447,056 $ 110,854,989 -38- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 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. 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, 2014 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, 2014 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 $ 3,030,840 $ 3,030,840 $ - $ - $ - $ - Ventura County Pool 33,498,069 33,498,069 - - - - Highmark Money Market 147,080 147,080 - - -U.S.Treasury Notes 3,036,340 1,017,190 1,017,270 - - 1,001,880 U.S.Agency Securities: Federal National MTG Assn. 18,103,670 - 1,017,090 - 12,051,700 5,034,880 Federal Home Loan Bank 13,185,940 1,016,100 4,150,730 1,011,040 977,000 6,031,070 Federal Farm Credit Bank 7,112,420 4,040,580 - - 2,055,370 1,016,470 Federal National MTG Corp. 10,103,460 - 1,018,090 1,001,100 4,998,640 3,085,630 Federal Agric MTG Corp. 5,514,420 - - - 2,997,040 2,517,380 Held by bond trustee: Money market funds 9,753,788 9,753,788 - - -U.S.Treasury Notes 1,197,637 1,197,637 - - - - Guaranteed Contracts 584,675 - - - - 584,675 $ 105,268,339 $ 53,701,284 $ 7,203,180 $ 2,012,140 $ 23,079,750 $ 19,271,985 C) Credit Risk and Concentration of Credit Risk At June 30, 2014, the carrying amount of the City and Successor Agency's combined deposits was $5,584,900. Bank balances, before reconciling items, were $4,682,733 at June 30, 2014, of which $4,682,733 were collateralized with securities held by the pledging financial institution's trust department but not in the City or Successor Agency's name. The California Government Code requires California banks and savings and loan associations to secure government organizations' 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, 2014 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 organization'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 organization's total cash deposits. The organizations may waive collateral requirements for cash deposits, which are insured for interest and non-interest bearing accounts up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, does not normally waive the collateralization requirements. As of June 30, 2014, the City and the Successor Agency combined have $4,432,733 in excess of the $250,000 limit of FDIC coverage. 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 $ 3,030,840 Not Rated 2.9% Ventura County Pool 33,498,069 AAAf 31.8% Highmark Money Market 147,080 AAA 0.1% U.S.Treasury Notes 3,036,340 AA+ 2.9% U.S.Agency Securities: 0.0% Federal National MTG Assn. 18,103,670 AA+ 17.2% Federal Home Loan Bank 13,185,940 AA+ 12.5% Federal Farm Credit Bank 7,112,420 AA+ 6.8% Federal National MTG Corp. 10,103,460 AA+ 9.6% Federal Agric MTG Corp. 5,514,420 AA 5.2% Held by bond trustee: 0.0% Money market funds 9,753,788 Not Rated 9.3% U.S.Treasury Notes 1,197,637 AA+ 1.1% Guaranteed Contracts 584,675 Not Rated 0.6% $ 105,268,339 100.0% -42- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 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, 2014, accounts were maintained in the name of the City for $3,030,840. At June 30, 2014, the fair value of the State of California Pooled Money Investment Account (PMIA) including accrued interest was $64,896,335,761. 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. The City is a voluntary participant in the investment pool. 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$33,498,069 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, 2014 3) NOTES AND LOANS RECEIVABLE Notes and loans receivable activity for the year ended June 30, 2014, is as follows: Beginning Ending Balance Increases Decreases Balance Notes receivable Deferred property assessments $ 431,050 $ 624 $ - $ 431,674 Moorpark 20,LP I 1,254,933 684,994 - 1,939,927 Moorpark 20,LP II 640,000 15,000 (655,000) - Total notes receivable 2,325,983 700,618 (655,000) 2,371,601 Loans receivable Rehabilitation 28,714 - - 28,714 First-time home buyer assistance-Affordable Housing 75,480 1,900 (54,736) 22,644 CalHome 128,093 20,000 (36,319) 111,774 Mountain Recreation&Conservation Authority 6,500 - - 6,500 Total loans receivable 238,787 21,900 (91,055) 169,632 Governmental activities Loans and Notes receivable $ 2,564,770 $ 722,518 $ (746,055) $ 2,541,233 A) 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, 2014, the principal balance outstanding is $250,249 and accrued interest of$181,425 for a total balance of$431,674. -44- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 3) NOTES AND LOANS RECEIVABLE, (continued) B) 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. The principal and accrued interest outstanding on this note at June 30, 2014 are $1,176,500 and $108,427 respectively for a total of$1,284,927. 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. The principal and accrued interest outstanding on this note at June 30, 2014 are $600,000 and $55,000 respectively for a total of$655,000. In the current fiscal year the City combined both notes for presentation purposes. The combined amount of principal and accrued interest outstanding at June 30, 2014 is $1,776,500 and $163,427 respectively, for a total of$1,939,927. C) Rehabilitation Loans The City operates a rehabilitation loan program for the renovation of low and moderate income housing. The total balance outstanding at June 30, 2014, was $28,714. D) First-Time Homeowner Assistance The City provides down payment assistance loans to first-time homeowners under different State and City programs. The total balance outstanding at June 30, 2014 was $22,644. 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, 2014 3) NOTES AND LOANS RECEIVABLE, (continued) E) Cal Home Mobile-home Rehabilitation Loans The total balance of Cal Home loans for repairs to mobile-homes in Villa del Arroyo at June 30, 2014 was $111,774. 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 $117,958 has been received and $222,231 has been forgiven. Funds received are deposited into a City Trust Fund to be used for eligible home ownership-related activities. F) 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 were to be repaid without interest to the City by June 30, 2014, 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, 2014 was $6,500. The City is exploring options for repayment; including provisions of services by MRCA to manage the conservation of an 80-acres City-owned open space property located outside the City limits along Tierra Rejada Road; or assistance with City acquisition of additional open space property. 4) INTERFUND TRANSACTIONS Due to/Due from Due to/due from other funds for the year ending June 30, 2014, consisted of the following: Receivable Fund Payable fund Amount Special Revenues-Los Angeles A.O.0 Non Major Funds a $ 177,006 Capital Projects-Special Projects Special Revenues-Parks and Public Facilities b 932,848 Non-Major Funds Capital Projects-Police Facilities Fee c 1,648,642 $ 2,758,496 a. In the Fiscal Year 2005/2006, the Los Angeles Area of Contribution (AOC) Fund advanced to the Tierra Rejada Road/Spring Road Area of Contribution, $600,000 to construct the median landscaping along Tierra Rejada Road. Repayment of the outstanding loan is contingent upon collection of future development fees. b. In the Fiscal Year 2009/2010, the Special Projects Fund advanced to the Parks/Public Facilities Fund, $1,000,000 to construct a new Skate Park and expansion of the Poindexter Park. The loan is subject to variable interest based on the average interest rate earned by LAIF from the previous year. The principal and interest will be repaid as Park fees are collected from new developments. -46- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 4) INTERFUND TRANSACTIONS, (continued) Due to/Due from, (continued) c. In the Fiscal Year 2005/2006, the Endowment Fund advanced to the Public Facilities Fund, $7,641,592 to construct the Police Services Center Building. Future development fees were pledged to repay this loan. However in March 2006, it was determined that at built-out, there will be an estimated $6.6 million shortfall in future revenues and City Council subsequently approved the contribution of$5,434,834 from the Endowment Fund. Transfers Interfund transfers for the year ended June 30, 2014 consisted of the following: Fund receiving transfers Fund making transfers Amount Assessment Districts General Fund 1 $ 1,634,208 Community Development General Fund 1 419,372 Special Projects General Fund 2 412,098 Non Major Funds Streets&Traffic Safety 3 75,233 Parks/Public Facilities 3 102,021 Special Projects 3 1,763,551 Non Major 3 311,561 2,252,366 Total governmental funds $ 4,718,044 (1)=Transfers made to provide funding for operations (2)=Transfers made to adjust fund balance to minimum requirement (3)=Transfers made to provide funding for future equipment replacement -47- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 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 position. 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, 2014: Beginning Ending Balance Additions Deletions Balance Governmental activities: Capital assets,not being depreciated: Land $ 39,380,903 $ - $ - $ 39,380,903 Land Rights-of-Way 123,066,830 - - 123,066,830 Infrastructure-Roadway System 1,214,737 4,924 (15,646) 1,204,015 Construction in progress 9,681,261 861,968 (13,267) 10,529,962 Total capital assets not being depreciated 173,343,731 866,892 (28,913) 174,181,710 Capital assets,being depreciated: Buildings and improvements 38,765,370 - - 38,765,370 Machinery and equipment 6,428,178 250,160 (252,579) 6,425,759 Infrastructure Roadway system 93,378,561 - - 93,378,561 Storm drain system 3,029,632 - (95,884) 2,933,748 Parks system 251,434 - - 251,434 Total capital assets being depreciated 141,853,175 250,160 (348,463) 141,754,872 Less accumulated depreciation/amortization for: Buildings and improvements (9,958,129) (1,073,888) - (11,032,017) Machinery and equipment (3,790,316) (387,293) 233,056 (3,944,553) Infrastructure Roadway system (38,805,283) (1,953,114) - (40,758,397) Storm drain system (298,830) (25,982) - (324,812) Parks system (72,784) (5,028) - (77,812) Total accumulated depreciation (52,925,342) (3,445,305) 233,056 (56,137,591) Total capital assets being depreciated net 88,927,833 (3,195,145) (115,407) 85,617,281 Governmental activities capital assets,net $ 262,271,564 $ (2,328,253) $ (144,320) $ 259,798,991 -48- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 5) CAPITAL ASSETS AND DEPRECIATION, (continued) Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 56,436 Public safety 239,206 Public services, including general infrastructure 2,478,082 Parks and recreation 671,581 Total depreciation expense-governmental activities $ 3,445,305 *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. 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. 6) LONG-TERM LIABILITIES Long-term liability activities for the year ended June 30, 2014, are as follows: Beginning Ending Due within Balance Increases Decreases Balance one year Governmental activities: Compensated absences $ 614,611 $ 555,067 $ (517,849) $ 651,829 $ 40,096 Governmental activities long-term liabilities $ 614,611 $ 555,067 $ (517,849) $ 651,829 $ 40,096 Employee Compensated Absences The long-term liability at June 30, 2014 is $651,829 for employee compensated absences. The General Fund is primarily expected to liquidate this liability. -49- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 7) 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. On September 12, 2012 the Governor signed Assembly Bill 340, Public Employee's Pension Reform Act of 2014 (PEPRA), which significantly changed the retirement benefit of employees hired on or after January 1, 2013. A two-tier retirement system has been adopted by the City according to the provisions of the law. 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 currently 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 2013/14 was 10.282 percent. The 10.282 percent is comprised of 8.052 percent for the City's normal cost and 2.230 percent for the City's share of the pool's amortization bases or cumulative gain and losses experienced by the pool since its June 30, 2003 inception. 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 and the percentage contributed by the City: Fiscal Year Required Percent Contributed Contributions 2013-2014 $ 552,671 100.00% 2012-2013 536,748 100.00% 2011-2012 488,328 100.00% New employees who qualify as new members per PEPRA will be enrolled in Tier 2; and will be required to pay at least 50% of total normal cost rate. For the period January 1, 2014 thru June 30, 2015, CaIPERS established the normal cost rate at 12.50%. As of June 30, 2014, the City had one employee enrolled in the Tier 2. -50- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 8) 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. The MRHP has a funded status of 101.6% as of June 30, 2014. 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 0.70 % of the annual covered payroll. For 2014, the City's annual OPEB cost (expense) was $34,000 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 2014 and the two preceding years were as follows: THREE-YEAR TREND INFORMATION Percentage of Fiscal Annual OPEB OPEB Cost Net OPEB Year Cost(AOC) Contributed Obligation (Asset) 6/30/2014 $ 34,000 100% $ (134,000) 6/30/2013 455,000 100% - 6/30/2012 44,215 92% (416,000) -51- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 8) OTHER POST EMPLOYMENT BENEFITS, (continued) Annual OPEB Cost and Net OPEB Obligation Calculation: The OPEB Cost and Net OPEB Obligation (Asset) for the fiscal year 2014 was as follows: June 30, 2014 Annual required contribution $ 34,000 Add: Interest on net OPEB obligation - Amortization of NOO - Annual OPEB cost (expense) 34,000 Contributions made (168,000) Increase in net OPEB obligation (134,000) Net OPEB obligation (asset) - beginning of year Net OPEB obligation (asset) -end of year $ (134,000) Funded Status and Funding Progress The funded status of the plan as of June 30, 2013, the most recent actuarial valuation applicable to 2014, was as follows: Actuarial Accrued Liability (AAL) $ 863,000 Actuarial Value of Plan Assets $ 877,000 Unfunded Actuarial Accrued Liability (Asset) (UAAL) $ (14,000) Funded Ratio (Actuarial Value of Plan Assets/AAL) 101.6% Covered Payroll (Active Plan Members) $ 4,890,000 UAAL as a Percentage of Covered Payroll -0.3% 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. -52- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 8) OTHER POST EMPLOYMENT BENEFITS, (continued) 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 The following is a summary of the actuarial assumptions and methods: Valuation Date June 30, 2013 Actuarial Cost Method Entry Age Normal Cost Method Amortization Method Level Percent of Payroll Remaining Amortization Period 15 years fixed (closed) period for plan changes Actuarial Assumptions: Investment Rate of Return 7.25% 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% 9) CONDUIT DEBT- REVENUE BONDS The City of Moorpark Mobile Home Park Revenue Bonds (Villa Del Arroyo) Series 2000 A and the City of Moorpark Mobile Home Park Subordinate Revenue Bonds (Villa Del Arroyo) Series 2000 B were issued in the amounts of$12,740,000 and $2,635,000 respectively. Both issuances were dated May 19, 2000. The Series A bonds were issued to fund a loan to Augusta Homes, a California 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, 2014, totaled $12,775,000. 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, 2014, totaled $13,580,906. -53- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 9) CONDUIT DEBT- REVENUE BONDS, (continued) Each of the bond programs described above do not constitute an indebtedness of the City, and there is neither a legal nor a moral obligation on the part of the City to make payments on such bonds from any source other than the revenues and assets pledged therefore. The programs are completely administered by the Trustees without any involvement by the City. Accordingly, these programs and the bonds issued there under have been excluded from the accompanying basic financial statements. 10) 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 2014 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 $995,000 at June 30, 2014. 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 $5,235,000 at June 30, 2014. -54- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 10) SPECIAL ASSESSMENT BONDS, (continued) 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. In February 2014 these bonds were refinanced and refunded with the issuance of a refunding Series A-2014 and Junior Series B-2014. The unpaid principal balance of the newly refinanced debt is $19,625,000 at June 30, 2014. 11) 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 Position. 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). -55- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 11) RISK MANAGEMENT, (continued) B) Self Insurance Programs of the Authority, (continued) 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. 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 $54,924,233. 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 and flood insurance is part of the property protection insurance program of the Authority. The City property currently has earthquake and flood protection in the amount of $49,760,940. 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. -56- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 11) RISK MANAGEMENT, (continued) 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. 12) CLASSIFICATION OF NET POSITION AND FUND BALANCE A) Net position In the Government-wide financial statements, net position is classified in the following categories: Net Investment in Capital Assets - This category groups all assets, including infrastructure, into one component of net position. Accumulated depreciation on these assets reduces this category. Restricted Net Position - 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 Position - This category represents the net position of the City that is 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. -57- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 12) CLASSIFICATION OF NET POSITION AND FUND BALANCE, (continued) B) Fund Balance, (continued) Restricted Fund Balance - Amounts that are constrained to specific purposes by state or federal laws, or externally imposed conditions by grantors or creditors. Committed Fund Balance - Amounts that may be specified by the City Council by 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, 2014, are presented below: Street and Assessment Parks/Public General Traffic Safety Districts Facilities Nonspendable: Prepaid items $ 24,815 $ 10,156 $ - $ - Due from other funds and governments - - - - Property held for resale 611,084 - - - Restricted for: Public services - 19,716,138 5,163,806 - Recreation services - - - 2,215,479 Public safety - - - - Low and moderate income housing - - - - Committed to: Library services - - - - Assigned to: Community/Engineering/Public Works - - - - Capital projects - - - - Unassigned 3,000,000 - - - Total fund balances(deficit) $ 3,635,899 $ 19,726,294 $ 5,163,806 $ 2,215,479 -58- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 12) CLASSIFICATION OF NET POSITION AND FUND BALANCE, (continued) B) Fund Balance, (continued) Los Angeles Low-Mod Prop 1B Area of Income Local Streets Community Contribution Housing Asset and Roads Development Nonspendable: Prepaid items $ - $ - $ - $ - Due from other funds and governments 177,006 - - - Property held for resale - 7,429,564 - - Restricted for: Public services 11,587,986 - 9,692 - Recreation services - - - - Public safety - - - - Low and moderate income housing - 222,280 - - Committed to: Library services - - - - Assigned to: Community/Engineering/Public Works - - - 17 Capital projects - - - - Unassigned - - - - Total fund balances(deficit) $ 11,764,992 $ 7,651,844 $ 9,692 $ 17 -59- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 12) CLASSIFICATION OF NET POSITION AND FUND BALANCE, (continued) B) Fund Balance, (continued) Nonmajor Total Police Special Governmental Governmental Facilities Fee Projects Funds Funds Nonspendable: Prepaid items $ - $ - $ - $ 34,971 Due from other funds and governments - 932,848 1,648,642 2,758,496 Property held for resale - - 55,573 8,096,221 Restricted for: Public services - - 3,327,188 39,804,810 Recreation services - - 2,617,275 4,832,754 Public safety - - 379,230 379,230 Low and moderate income housing - - 4,150,311 4,372,591 Committed to: Library services - - 698,395 698,395 Assigned to: Community/Engineering/Public Works - - - 17 Capital projects - 24,549,778 11,640,782 36,190,560 Unassigned (1,648,181) - (177,006) 1,174,813 Total fund balances(deficit) $ (1,648,181) $ 25,482,626 $ 24,340,390 $ 98,342,858 Deficit Fund Balances The following major governmental fund has a deficit at June 30, 2014: Police Facilities Fees Capital Projects Fund - $ (1,648,181) The following non-major governmental fund has a deficit at June 30, 2014: Tierra Rejada/Spring Road A.O.C. Special Revenue Fund - $ (177,006) Management expects these deficits to be eliminated through future revenues. -60- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 13) 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 $4,480,500. This amount represents all outstanding encumbrances relating to capital projects. 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 Redevelopment Agency of the City of Moorpark for the year ended June 30, 2014 (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, 2014, the Successor Agency of the Redevelopment Agency of the City of Moorpark has completed and submitted its Long Range Property Management Plan and is waiting for approval from the State of California Department of Finance. -61- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK (SARA) 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. 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 accrual method of accounting. -62- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK (SARA), (continued) 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 defined by the Health and Safety Code Section 34176 (e), were transferred to the City of Moorpark in a specially created new fund shown, as a major fund in 2014, named "Low-Mod Housing Asset" fund in the governmental funds financial statements. LONG TERM DEBT The following is a schedule of changes in long-term liabilities for the year ended June 30, 2014: Beginning Ending Due within Balance Increases Decreases Balance one year Bonds payable: 1999 Tax allocation bonds $ 3,920,000 $ - $ (580,000) $ 3,340,000 $ 605,000 2001 Tax allocation bonds 11,470,000 - (15,000) 11,455,000 20,000 2006 Tax allocation bonds 11,580,000 - (40,000) 11,540,000 40,000 Subtotal bonds payable 26,970,000 - (635,000) 26,335,000 665,000 Plus/(less)deferred amounts: For issuance discount (254,896) - 10,847 (244,049) Successor agency long-term liabilities $ 26,715,104 $ - $ (624,153) $ 26,090,951 $ 665,000 Combined annual debt service requirements to maturity for all bonds are as follows: Year Ending Principal Interest Total 2015 $ 665,000 $ 1,250,544 $ 1,915,544 2016 700,000 1,218,670 1,918,670 2017 730,000 1,185,113 1,915,113 2018 765,000 1,149,796 1,914,796 2019 805,000 1,113,168 1,918,168 2020-2024 3,810,000 5,011,660 8,821,660 2025-2029 4,865,000 3,949,214 8,814,214 2030-2034 6,225,000 2,596,330 8,821,330 2035-2039 7,770,000 709,003 8,479,003 Total $26,335,000 $ 18,183,498 $ 44,518,498 -63- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK (SARA), (continued) LONG TERM DEBT (continued) A) 1999 Tax Allocation Bonds In 1999, the former Redevelopment 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 were secured by all property tax increment revenue, which was deposited in the former 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. 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. The Successor Agency is in compliance with the covenants contained in debt indenture, which require the establishment of certain specific accounts for the 1999 Bonds. B) 2001 Tax Allocation Bonds In December 2001, the former Redevelopment Agency issued $11,625,000 of Tax Allocation Parity Bonds (2001 Bonds). The proceeds of the 2001 Bonds were 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. -64- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK (SARA), (continued) LONG TERM DEBT, (continued) B) 2001 Tax Allocation Bonds, (continued) The 2001 Bonds were secured by all property tax increment revenue, which were deposited in the former 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 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. The Successor Agency is in compliance with the covenants contained in debt indentures, which require the establishment of certain specific accounts for the 2001 Bonds. C) 2006 Tax Allocation Bonds In 2006, the former Redevelopment 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 was recorded in the former 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 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. The Successor Agency is in compliance with the covenants contained in the debt indenture, which require the establishment of certain specific accounts for the 2006 Bonds. -65- City of Moorpark Notes to Financial Statements Year Ended June 30, 2014 15) RESTATEMENT OF NET POSITION a. Change in accounting principle As discussed in Note 1, the City implemented GASB Statement No. 65 effective July 1, 2013. GASB 65, among other provisions, amended prior guidance with respect to the treatment of debt issuance costs. Under GASB 65, debt issuance costs, except any portion related to prepaid insurance costs, are recognized as an expense in the period incurred rather than reported as an asset on the statement of net position and recognized as an expense in a systematic and rational manner over the duration of the related debt. The Private Purpose Trust Fund's unamortized balance of debt issuance costs, at the beginning of the year was $178,123. GASB 65 requires that accounting changes adopted to conform to the provisions of the Statement be applied retroactively by restating financial statements. Accordingly, beginning net position on the Statement of Changes in Fiduciary Net Position — Private Purpose Trust Fund has been restated for any unamortized debt issuance costs previously reported on the statement of net position. b. Correction of an error The beginning net position balance shown in the Private Purpose Trust Fund was restated as a result of the correction of an error in a balance of certain pass-thru liability improperly accrued and accounted for in the fund. The amount of the liability at the beginning of the year was $842,242. Accordingly, beginning net position on the Statement of Changes in Fiduciary Net Position — Private Purpose Trust Fund has been restated for that amount related to on the statement of net position. As a result of the above mentioned items, the beginning net position of the Private Purpose Trust Fund —Statement of Changes in Fiduciary Net Position was restated as follows: Fiduciary Funds-Private Purpose Trust Fund Statement of Changes in Fiduciary Net Position Net position, beginning of the year, prior to restatement $ 474,900 Bonds Cost of Issuance adjustment-GASB 65 (178,123) Payables adjustment-Release of liabililty 842,242 Net position, beginning of the year, as restated $ 1,139,019 16) SUBSEQUENT EVENT During November 2014, the Successor Agency issued 2014 Tax Allocation Refunding Bonds to refund the entire 1999 Bonds and 2001 Bonds outstanding. The refunding resulted in an annual savings to the debt service expense of approximately$190,000. -66- REQUIRED SUPPLEMENTARY INFORMATION Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - General Fund Year Ended June 30, 2014 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Property Taxes Current Secured $ 3,100,000 $ 3,000,000 $ 3,016,191 $ 16,191 Current Unsecured 115,000 115,000 101,825 (13,175) Prior year Secured-Unsecured 10,000 10,000 5,159 (4,841) Supplemental Secured-Unsecured 35,000 35,000 49,589 14,589 Real Property Transfer Tax 140,000 140,000 219,852 79,852 Homeowners Property Exemption 40,000 40,000 35,574 (4,426) Parcel Tax 210,000 210,000 212,641 2,641 Property Taxes-VLF 2,850,000 2,940,000 2,941,864 1,864 Other Property Taxes 125,000 125,000 259,070 134,070 Total Property Taxes 6,625,000 6,615,000 6,841,765 226,765 Sales Taxes Sales and use tax 2,800,000 2,725,000 2,695,884 (29,116) Sales tax compensation 875,000 1,090,000 1,089,362 (638) Total Sales Taxes 3,675,000 3,815,000 3,785,246 (29,754) Franchise Fees Cable TV 425,000 425,000 401,384 (23,616) Edison 300,000 300,000 297,329 (2,671) Gas 100,000 100,000 90,869 (9,131) Oil - - 4,131 4,131 PEG Fees 50,000 50,000 48,681 (1,319) VM 155,000 - - - GI Rubbish 200,000 200,000 196,707 (3,293) Moorpark Rubbish 120,000 120,000 124,245 4,245 Landfill local impact fee 60,000 60,000 50,779 (9,221) CIWMP Fees 10,000 10,000 8,634 (1,366) Total Franchise Fees 1,420,000 1,265,000 1,222,759 (42,241) Licenses and Permits Business Registration 125,000 125,000 111,871 (13,129) Filming Permits 7,000 7,000 8,900 1,900 NPDES Business Inspection Fees 8,100 8,100 8,580 480 Total Licenses and Permits 140,100 140,100 129,351 (10,749) - 67 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - General Fund Year Ended June 30, 2014 Continued Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Fines and Forfeitures Municipal Codes Fines 250,000 250,000 219,495 (30,505) Animal Control Fines 1,000 1,000 45 (955) Forfeitures and Penalties 1,000 1,000 1,955 955 Total Fines and Forfeitures 252,000 252,000 221,495 (30,505) Use of Money and Property Investment Earnings 300,000 300,000 338,740 38,740 Rents and Concessions 125,000 125,000 119,995 (5,005) Rents Tenants 115,000 115,000 142,604 27,604 Other earnings and rents - - 9,126 9,126 Total Use of Money and Property 540,000 540,000 610,465 70,465 Charges for Services Other Administrative Services 100,000 100,000 54,090 (45,910) Administrative Fees 250,000 250,000 250,000 - Administrative Fees-CFD - - 163,000 163,000 Park and Facility Use Fee 100,000 100,000 129,371 29,371 Contract Class Registration Fees 248,000 248,000 218,610 (29,390) League Fees 122,800 122,800 100,978 (21,822) Recreation Events Fees 299,500 299,500 249,737 (49,763) Other Recreation Fees 5,000 5,000 7,537 2,537 Advertising in Brochure 8,000 8,000 13,958 5,958 Other Community Services Fees 140,500 3,500 2,121 (1,379) Photocopying 1,000 1,000 514 (486) Sale of Documents 1,000 1,000 952 (48) Special Police Department Services 30,000 30,000 33,640 3,640 NSF Fees and Charges 1,000 1,000 505 (495) Planning Time Charges 10,000 10,000 22,732 12,732 Total Charges for Services 1,316,800 1,179,800 1,247,745 67,945 Intergovernmental Motor Vehicle in Lieu - - 15,942 15,942 Other State Funds 20,000 20,000 20,919 919 County Grants 20,000 35,000 29,915 (5,085) Other Federal Revenue Grants 15,000 15,000 2,260 (12,740) Total Intergovernmental 55,000 70,000 69,036 (964) - 68 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - General Fund Year Ended June 30, 2014 Continued Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Other Revenues Contributions-Donations 10,000 10,000 2,572 (7,428) Revenues not classified elsewhere 5,000 5,000 16,667 11,667 Expense Reimursements 80,000 95,000 205,967 110,967 Restitutions-Insurance Proceeds 20,000 20,000 56,598 36,598 Cash overage/shortage - - 30 30 Total Other Revenues 115,000 130,000 281,834 151,834 Total revenues 14,138,900 14,006,900 14,409,696 402,796 EXPENDITURES General government 1,329,281 1,897,120 1,725,569 171,551 Public safety 6,438,293 6,553,293 6,303,971 249,322 Public services 2,279,011 2,338,189 1,935,529 402,660 Parks and recreation 1,717,262 1,853,480 1,589,008 264,472 Capital Outlay 638,622 1,160,863 389,219 771,644 Total expenditures 12,402,469 13,802,945 11,943,296 1,859,649 Excess of revenues over expenditures 1,736,431 203,955 2,466,400 2,262,445 OTHER FINANCING SOURCES (USES) Transfers out (2,574,461) (2,824,496) (2,465,677) 358,819 Total other financing sources (uses) (2,574,461) (2,824,496) (2,465,677) 358,819 Net change in fund balance (838,030) (2,620,541) 723 2,621,264 Fund balance, beginning of year 3,635,176 3,635,176 3,635,176 - Fund balance, end of year $ 2,797,146 $ 1,014,635 $ 3,635,899 $ 2,621,264 - 69 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - Street and Traffic Safety-Special Revenue Fund Year Ended June 30, 2014 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property Investment Earnings $ 254,000 $ 254,000 $ 255,170 $ 1,170 Rents Tenants 19,800 19,800 19,801 1 Total Use of Money and Property 273,800 273,800 274,971 1,171 Charges for Services Other Development Fees 624,000 624,000 2,243,108 1,619,108 Total Charges for Services 624,000 624,000 2,243,108 1,619,108 Total revenues 897,800 897,800 2,518,079 1,620,279 EXPENDITURES Public services 388,663 437,873 350,437 87,436 Capital Outlay 2,336,003 3,360,221 358,254 3,001,967 Total expenditures 2,724,666 3,798,094 708,691 3,089,403 Excess (deficiency) of revenues over(under) expenditures (1,826,866) (2,900,294) 1,809,388 4,709,682 OTHER FINANCING SOURCES(USES) Transfers out - (75,550) (75,233) 317 Total other financing sources (uses) - (75,550) (75,233) 317 Net change in fund balance (1,826,866) (2,975,844) 1,734,155 4,709,999 Fund balance, beginning of year 17,992,139 17,992,139 17,992,139 - Fund balance, end of year $ 16,165,273 $ 15,016,295 $ 19,726,294 $ 4,709,999 - 70 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule -Assessment Districts -Special Revenue Fund Year Ended June 30, 2014 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property $ - $ - $ 77,785 $ 77,785 Charges for Services 7,600 7,600 7,592 (8) Maintenance Assessments 1,964,200 1,964,200 1,958,856 (5,344) Other Revenues 10,000 10,000 4,374 (5,626) Total revenues 1,981,800 1,981,800 2,048,607 66,807 EXPENDITURES Public Services 406,865 406,865 375,637 31,228 Parks and Recreation 4,223,277 4,329,179 3,735,502 593,677 Capital Outlay 19,000 19,000 5,823 13,177 Total expenditures 4,649,142 4,755,044 4,116,962 638,082 Excess (deficiency)of revenues over(under)expenditures (2,667,342) (2,773,244) (2,068,355) 704,889 OTHER FINANCING SOURCES (USES) Transfers in 1,803,299 1,803,299 1,634,208 (169,091) Total other financing sources (uses) 1,803,299 1,803,299 1,634,208 (169,091) Net change in fund balance (864,043) (969,945) (434,147) 535,798 Fund balance, beginning of year 5,597,953 5,597,953 5,597,953 - Fund balance, end of year $ 4,733,910 $ 4,628,008 $ 5,163,806 $ 535,798 - 71 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - Parks and Public Facilities -Special Revenue Fund Year Ended June 30, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property $ 18,000 $ 18,000 $ 46,523 $ 28,523 Charges for Services 265,000 265,000 1,168,224 903,224 Total revenues 283,000 283,000 1,214,747 931,747 EXPENDITURES Parks and Recreation 63,200 78,200 16,650 61,550 Capital Outlay 388,800 388,800 24,283 364,517 Total expenditures 452,000 467,000 40,933 426,067 Excess (deficiency) of revenues over(under) expenditures (169,000) (184,000) 1,173,814 1,357,814 OTHER FINANCING SOURCES(USES) Transfers out - (102,021) (102,021) - Total other financing sources (uses) - (102,021) (102,021) - Net change in fund balance (169,000) (286,021) 1,071,793 1,357,814 Fund balance, beginning of year 1,143,686 1,143,686 1,143,686 - Fund balance, end of year $ 974,686 $ 857,665 $ 2,215,479 $ 1,357,814 - 72 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - Los Angeles AOC -Special Revenue Fund Year Ended June 30, 2014 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property Investment Earnings $ 150,000 $ 150,000 $ 150,907 $ 907 Total Use of Money and Property 150,000 150,000 150,907 907 Charges for Services Area of Contribution Fee 312,000 312,000 913,758 601,758 Total Charges for Services 312,000 312,000 913,758 601,758 Total revenues 462,000 462,000 1,064,665 602,665 EXPENDITURES Public services 27,091 52,640 39,728 12,912 Capital Outlay 5,705,176 6,125,259 236,655 5,888,604 Total expenditures 5,732,267 6,177,899 276,383 5,901,516 Net change in fund balance (5,270,267) (5,715,899) 788,282 6,504,181 Fund balance, beginning of year 10,976,710 10,976,710 10,976,710 - Fund balance, end of year $ 5,706,443 $ 5,260,811 $ 11,764,992 $ 6,504,181 - 73 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - Low-Mod Income Housing Asset Fund -Special Revenue Fund Year Ended June 30, 2014 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property $ - $ - $ 3,123 $ 3,123 Charges for Services - - 4,950 4,950 Total revenues - - 8,073 8,073 EXPENDITURES General Government 30,000 30,000 459 29,541 Total expenditures 30,000 30,000 459 29,541 Net change in fund balance (30,000) (30,000) 7,614 37,614 Fund balance, beginning of year 7,644,230 7,644,230 7,644,230 - Fund balance, end of year $ 7,614,230 $ 7,614,230 $ 7,651,844 $ 37,614 - 74 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule - Prop 1B Local Streets and Roads - Special Revenue Fund Year Ended June 30, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ - $ - $ 9,692 $ 9,692 Intergovernmental - 1,091,000 - (1,091,000) Total revenues - 1,091,000 9,692 (1,081,308) EXPENDITURES Capital outlay 539,061 537,267 - 537,267 Total expenditures 539,061 537,267 - 537,267 Net change in fund balance (539,061) 553,733 9,692 (544,041) Fund balance, beginning of year - - - - Fund balance, end of year $ (539,061) $ 553,733 $ 9,692 $ (544,041) - 75 - Required Supplementary Information City of Moorpark Budgetary Comparison Schedule -Community Development -Special Revenue Fund Year Ended June 30, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Licenses and permits $ 510,900 $ 510,900 $ 1,150,268 $ 639,368 Fines and forfeitures 1,000 1,000 4,766 3,766 Charges for services 745,500 745,500 1,344,555 599,055 Other revenue - - 855 855 Total revenues 1,257,400 1,257,400 2,500,444 1,243,044 EXPENDITURES Public services 2,278,598 2,341,069 2,918,166 (577,097) Capital outlay - - 1,733 (1,733) Total expenditures 2,278,598 2,341,069 2,919,899 (578,830) Excess (deficiency) of revenues over(under) expenditures (1,021,198) (1,083,669) (419,455) 664,214 OTHER FINANCING SOURCES (USES) Transfers in 1,021,198 1,021,198 419,372 (601,826) Total other financing sources (uses) 1,021,198 1,021,198 419,372 (601,826) Net change in fund balance - (62,471) (83) 62,388 Fund balance, beginning of year 100 100 100 - Fund balance, end of year $ 100 $ (62,371) $ 17 $ 62,388 - 76 - Required Supplementary Information City of Moorpark Schedule of Funding Progress for MRHP - OPEB Year Ended June 30, 2014 Schedule of Funding Progress for MRHP(Amounts in 000's) Entry age Unfunded Actuarial Actuarial UAAL as a%of Actuarial Actuarial Value Accrued Liability Accrued Liability Funded Ratio Annual Covered Covered Payroll Valuation Date of Assets(a) (b) (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% 6/30/2013 877 863 (14) 101.6% 4,890 -0.3% GASB 45 was implemented prospectively in fiscal year 2009. There were no previous actuarial valuations. - 77 - City of Moorpark Notes to the Required Supplementary Information Year Ended June 30, 2014 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 $6,337,087. This increase resulted primarily from additional appropriations to various construction in progress projects, acquisition of property, prepayments of certain liabilities and re-budgeted projects and amounts carried over from Fiscal Year 2012/13 as continuing appropriations. The Community Development Fund presents total budgeted expenditures of $2,341,069, total actual expenditures of$2,919,899, and total excess of expenditures over budgeted amounts of$578,830. In the current year the City did not budget for its Special Project— Major Capital Projects fund. -78- SUPPLEMENTARY INFORMATION City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Police Facilities Fee - Major Capital Projects Fund Year Ended June 30, 2014 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property Investment Earnings $ - $ - $ 760 $ 760 Total Use of Money and Property - - 760 760 Maintenance Assesment Police Facilities Fees 90,000 90,000 200,265 110,265 Total Maintenance Assesment 90,000 90,000 200,265 110,265 Total revenues 90,000 90,000 201,025 111,025 EXPENDITURES Total expenditures - - - - Net change in fund balance 90,000 90,000 201,025 111,025 Fund balance (deficit), beginning of year (1,849,206) (1,849,206) (1,849,206) - Fund balance (deficit), end of year $ (1,759,206) $ (1,759,206) $ (1,648,181) $ 111,025 - 79 - City of Moorpark Non-Major Governmental Funds June 30, 2014 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 - is used to account for grants used for development of affordable housing units. Sources of revenue are grants, developer 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. Tierra Rejada/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 Rejada & Spring Road project area. Sources of revenue are development fees. 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. The City does not present a Budget to Actual schedule for this fund. 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. 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. 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. - 80 - City of Moorpark Non-Major Governmental Funds June 30, 2014 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 account 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 transferred 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. - 81 - City of Moorpark Combining Balance Sheet Non-Major Governmental Funds June 30, 2014 Special Revenue Library Traffic Affordable Services Safety Housing ASSETS Cash and investments $ 765,368 $ 353,902 $ 4,159,194 Receivables: Accounts - 40,576 - Interest 832 1,278 9,614 Notes and loans - - 149,417 Due from other funds - - - Property held for resale - - 55,573 Total assets $ 766,200 $ 395,756 $ 4,373,798 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 67,803 $ 16,526 $ 18,497 Due to other funds - - Unavailable revenues 2 - Total liabilities 67,805 16,526 18,497 Deferred inflows of resources: Deferred loans - - 149,417 Fund balances: Nonspendable - - 55,573 Restricted - 379,230 4,150,311 Committed 698,395 - - Assigned - - - Unassigned - - - Total fund balances (deficit) 698,395 379,230 4,205,884 Total liabilities, deferred inflows of resources and fund balances $ 766,200 $ 395,756 $ 4,373,798 -82- Continued Special Revenue Tierra Rejada/ Freemount Endowment Spring Road Casey/Gabbert Storm Drain Fund A.O.C. A.O.C. A.O.C. $ 5,514,529 $ - $ 91,589 $ 15,674 10,525 - 230 40 6,500 - - - 1,648,642 - - - $ 7,180,196 $ - $ 91,819 $ 15,714 $ 17,511 $ - $ - $ - - 177,006 - - 6,500 - - - 24,011 177,006 - - 1,648,642 - - - - - 91,819 15,714 5,507,543 - - - - (177,006) - - 7,156,185 (177,006) 91,819 15,714 $ 7,180,196 $ - $ 91,819 $ 15,714 -83- City of Moorpark Combining Balance Sheet Non-Major Governmental Funds June 30, 2014 Special Revenue Art State and State Gas in Public Federal Tax Places Assistance ASSETS Cash and investments $ 974,903 $ 2,619,489 $ 940,711 Receivables: Accounts 120,149 - 98,828 Interest 2,533 5,705 1,010 Notes and loans - - - Due from other funds - - - Property held for resale - - - Total assets $ 1,097,585 $ 2,625,194 $ 1,040,549 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 18,953 $ 7,919 $ 63,553 Due to other funds - - - Unavailable revenues 6,384 - 890 Total liabilities 25,337 7,919 64,443 Deferred inflows of resources: Deferred loans - - - Fund balances: Nonspendable - - - Restricted 1,072,248 2,617,275 976,106 Committed - - - Assigned - - - Unassigned - - - Total fund balances (deficit) 1,072,248 2,617,275 976,106 Total liabilities, deferred inflows of resources and fund balances $ 1,097,585 $ 2,625,194 $ 1,040,549 -84- Continued Special Revenue Total Local Transportation Solid Special Transit Waste Revenue $ 55,873 $ 1,021,681 $ 16,512,913 183,420 24,027 467,000 115 2,612 34,494 - - 155,917 - - 1,648,642 - - 55,573 $ 239,408 $ 1,048,320 $ 18,874,539 $ 76,037 $ 14,172 $ 300,971 - - 177,006 26,218 - 39,994 102,255 14,172 517,971 - - 149,417 - - 1,704,215 137,153 1,034,148 10,474,004 - - 698,395 - - 5,507,543 - - (177,006) 137,153 1,034,148 18,207,151 $ 239,408 $ 1,048,320 $ 18,874,539 -85- City of Moorpark Combining Balance Sheet Non-Major Governmental Funds June 30, 2014 Capital Projects Moorpark Capital Highlands City Hall Projects Improvement Building ASSETS Cash and investments $ 93,468 $ - $ 3,649,898 Receivables: Accounts - - - Interest 237 - 9,287 Notes and loans - - - Due from other funds - - - Property held for resale - - - Total assets $ 93,705 $ - $ 3,659,185 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ - $ 13,699 Due to other funds - - - Unavailable revenues - - - Total liabilities - - 13,699 Deferred inflows of resources: Deferred loans - - - Fund balances: Nonspendable - - - Restricted - - - Committed - - - Assigned 93,705 - 3,645,486 Unassigned - - - Total fund balances (deficit) 93,705 - 3,645,486 Total liabilities, deferred inflows of resources and fund balances $ 93,705 $ - $ 3,659,185 -86- Continued Capital Projects Total Total Capital NonMajor Equipment Projects Governmental Replacement Funds Funds $ 2,403,586 $ 6,146,952 $ 22,659,865 467,000 1,832 11,356 45,850 155,917 1,648,642 55,573 $ 2,405,418 $ 6,158,308 $ 25,032,847 $ 11,370 $ 25,069 $ 326,040 177,006 39,994 11,370 25,069 543,040 149,417 1,704,215 10,474,004 698,395 2,394,048 6,133,239 11,640,782 (177,006) 2,394,048 6,133,239 24,340,390 $ 2,405,418 $ 6,158,308 $ 25,032,847 -87- City of Moorpark Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Non-Major Governmental Funds Year Ended June 30, 2014 Special Revenue Library Traffic Affordable Services Safety Housing REVENUES Taxes $ 802,084 $ - $ - Fines and forfeitures 19,131 180,252 200 Use of money and property 6,263 7,167 50,623 Charges for services 13,453 - 843,640 Intergovernmental - - Other revenue - - 54,759 Total revenues 840,931 187,419 949,222 EXPENDITURES Current: General government - - 20,000 Public safety - 240,432 - Public services 884,428 - 232,746 Parks and recreation - - - Capital Outlay 654 - 13,265 Total expenditures 885,082 240,432 266,011 Excess (deficiency) of revenues over(under) expenditures (44,151) (53,013) 683,211 OTHER FINANCING SOURCES (USES) Transfers in - - - Transfers out - (161,994) - Total other financing sources (uses) - (161,994) - Net change in fund balances (44,151) (215,007) 683,211 Fund balances (deficit), beginning of year 742,546 594,237 3,522,673 Fund balances (deficit), end of year $ 698,395 $ 379,230 $ 4,205,884 -88- Continued Special Revenue Tierra Rejada/ Freemount Endowment Spring Road Casey/Gabbert Storm Drain Fund A.O.C. A.O.C. A.O.C. $ - $ - $ - $ - 129,660 - 1,229 213 2,220,015 - 2,030 - 32,195 - - - 2,381,870 - 3,259 213 204,430 - - - 154,231 - - - 358,661 - - - 2,023,209 - 3,259 213 2,023,209 - 3,259 213 5,132,976 (177,006) 88,560 15,501 $ 7,156,185 $ (177,006) $ 91,819 $ 15,714 -89- City of Moorpark Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Non-Major Governmental Funds Year Ended June 30, 2014 Special Revenue Art State and State in Public Federal Gas Tax Places Assistance REVENUES Taxes $ - $ - $ - Fines and forfeitures - - - Use of money and property 13,541 29,697 4,437 Charges for services - 704,692 - Intergovernmental 1,182,188 - 1,403,273 Other revenue 7,797 - 77,493 Total revenues 1,203,526 734,389 1,485,203 EXPENDITURES Current: General government - - - Public safety - - 99,147 Public services 709,316 - 576,495 Parks and recreation - 13,441 - Capital Outlay 149,689 26,441 - Total expenditures 859,005 39,882 675,642 Excess (deficiency) of revenues over(under) expenditures 344,521 694,507 809,561 OTHER FINANCING SOURCES (USES) Transfers in - - Transfers out (149,568) - - Total other financing sources (uses) (149,568) - - Net change in fund balances 194,953 694,507 809,561 Fund balances (deficit), beginning of year 877,295 1,922,768 166,545 Fund balances (deficit), end of year $ 1,072,248 $ 2,617,275 $ 976,106 -90- Continued Special Revenue Total Local Special Transportation Solid Revenue Transit Waste Funds $ - $ 280,127 $ 1,082,211 - - 199,583 743 14,044 257,617 68,432 3,140 3,855,402 542,917 10,191 3,170,764 - - 140,049 612,092 307,502 8,705,626 - - 20,000 - - 339,579 610,629 289,310 3,507,354 - - 13,441 40,728 - 385,008 651,357 289,310 4,265,382 (39,265) 18,192 4,440,244 - - (311,562) - - (311,562) (39,265) 18,192 4,128,682 176,418 1,015,956 14,078,469 $ 137,153 $ 1,034,148 $ 18,207,151 -91- City of Moorpark Combining Statement of Revenues, Expenditures, and Changes in Fund Balance, (continued) Non-Major Governmental Funds Year Ended June 30, 2014 Capital Projects Moorpark Capital Highlands City Hall Projects Improvement Building REVENUES Taxes $ - $ - $ - Fines and forfeitures - - - Use of money and property 1,272 - 49,927 Charges for services - - - Intergovernmental - - - Other revenue - - - Total revenues 1,272 - 49,927 EXPENDITURES Current: General government - - - Public safety - - - Public services - - - Parks and recreation - - - Capital Outlay - 2,844 41,575 Total expenditures - 2,844 41,575 Excess (deficiency) of revenues over(under) expenditures 1,272 (2,844) 8,352 OTHER FINANCING SOURCES(USES) Transfers in - - - Transfers out - - - Total other financing sources (uses) - - - Net change in fund balances 1,272 (2,844) 8,352 Fund balances (deficit), beginning of year 92,433 2,844 3,637,134 Fund balances (deficit), end of year $ 93,705 $ - $ 3,645,486 -92- Continued Capital Projects Total Total Capital Nonmajor Equipment Projects Governmental Replacement Funds Funds $ - $ - $ 1,082,211 - - 199,583 6,783 57,982 315,599 - - 3,855,402 - - 3,170,764 11,500 11,500 151,549 18,283 69,482 8,775,108 - - 20,000 - - 339,579 - - 3,507,354 - - 13,441 135,044 179,463 564,471 135,044 179,463 4,444,845 (116,761) (109,981) 4,330,263 2,252,366 2,252,366 2,252,366 - - (311,562) 2,252,366 2,252,366 1,940,804 2,135,605 2,142,385 6,271,067 258,443 3,990,854 18,069,323 $ 2,394,048 $ 6,133,239 $ 24,340,390 -93- This page intentionally left blank City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Library Services -Special Revenue Fund Year Ended June 30, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Taxes $ 775,000 $ 775,000 $ 802,084 $ 27,084 Fines and forfeitures 20,000 20,000 19,131 (869) Use of money and property 1,000 1,000 6,263 5,263 Charges for services 15,000 15,000 13,453 (1,547) Total revenues 811,000 811,000 840,931 29,931 EXPENDITURES Current: Public services 894,444 935,250 884,428 50,822 Capital Outlay - - 654 (654) Total expenditures 894,444 935,250 885,082 50,168 Net change in fund balance (83,444) (124,250) (44,151) 80,099 Fund balance, beginning of year 742,546 742,546 742,546 - Fund balance, end of year $ 659,102 $ 618,296 $ 698,395 $ 80,099 -94- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Traffic Safety- Special Revenue Fund Year Ended June 30, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Fines and forfeitures $ 150,000 $ 150,000 $ 180,252 $ 30,252 Use of money and property 5,000 5,000 7,167 2,167 Total revenues 155,000 155,000 187,419 32,419 EXPENDITURES Public safety 232,793 258,291 240,432 17,859 Total expenditures 232,793 258,291 240,432 17,859 Excess (deficiency)of revenues over(under)expenditures (77,793) (103,291) (53,013) 50,278 OTHER FINANCING SOURCES(USES) Transfers out - (161,994) (161,994) - Total other financing sources (uses) - (161,994) (161,994) - Net change in fund balance (77,793) (265,285) (215,007) 50,278 Fund balance, beginning of year 594,237 594,237 594,237 - Fund balance, end of year $ 516,444 $ 328,952 $ 379,230 $ 50,278 -95- 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, 2014 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Fines and Forfeitures $ - $ - $ 200 $ 200 Use of Money and Property 50,000 50,000 50,623 623 Charges for Services 234,300 234,300 843,640 609,340 Other Revenues - - 54,759 54,759 Total revenues 284,300 284,300 949,222 664,922 EXPENDITURES General government 20,000 20,000 20,000 - Public services 257,575 305,357 232,746 72,611 Capital Outlay - - 13,265 (13,265) Total expenditures 277,575 325,357 266,011 59,346 Net change in fund balance 6,725 (41,057) 683,211 724,268 Fund balance, beginning of year 3,522,673 3,522,673 3,522,673 - Fund balance, end of year $ 3,529,398 $ 3,481,616 $ 4,205,884 $ 724,268 -96- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Endowment -Special Revenue Fund Year Ended June 30, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 95,000 $ 95,000 $ 129,660 $ 34,660 Charges for services 678,000 678,000 2,220,015 1,542,015 Intergovernmental - - 32,195 32,195 Total revenues 773,000 773,000 2,381,870 1,608,870 EXPENDITURES Public services 201,291 200,648 204,430 (3,782) Capital outlay 948,541 394,464 154,231 240,233 Total expenditures 1,149,832 595,112 358,661 236,451 Net change in fund balance (376,832) 177,888 2,023,209 1,845,321 Fund balance, beginning of year 5,132,976 5,132,976 5,132,976 - Fund balance, end of year $ 4,756,144 $ 5,310,864 $ 7,156,185 $ 1,845,321 -97- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Tierra Rejada Spring Road -Special Revenue Fund Year Ended June 30, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Maintenance assessments $ 142,000 $ 142,000 $ - $ (142,000) Other revenue - - Total revenues 142,000 142,000 - (142,000) EXPENDITURES Total expenditures - - - - Net change in fund balance 142,000 142,000 - (142,000) Fund balance, beginning of year (177,006) (177,006) (177,006) - Fund balance, end of year $ (35,006) $ (35,006) $ (177,006) $ (142,000) -98- 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, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ - $ - $ 13,541 $ 13,541 Intergovernmental 946,000 946,000 1,182,188 236,188 Other revenue - - 7,797 7,797 Total revenues 946,000 946,000 1,203,526 257,526 EXPENDITURES Public services 750,938 800,539 709,316 91,223 Capital outlay 32,966 229,511 149,689 79,822 Total expenditures 783,904 1,030,050 859,005 171,045 Excess (deficiency)of revenues over(under)expenditures 162,096 (84,050) 344,521 428,571 OTHER FINANCING SOURCES(USES) Transfers out - (149,568) (149,568) - Total other financing sources (uses) - (149,568) (149,568) - Net change in fund balance 162,096 (233,618) 194,953 428,571 Fund balance, beginning of year 877,295 877,295 877,295 - Fund balance, end of year $ 1,039,391 $ 643,677 $ 1,072,248 $ 428,571 -99- 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, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 75,000 $ 75,000 $ 29,697 $ (45,303) Charges for services 275,000 275,000 704,692 429,692 Total revenues 350,000 350,000 734,389 384,389 EXPENDITURES Parks and recreation 13,545 13,496 13,441 55 Capital outlay 300,000 300,000 26,441 273,559 Total expenditures 313,545 313,496 39,882 273,614 Net change in fund balance 36,455 36,504 694,507 658,003 Fund balance, beginning of year 1,922,768 1,922,768 1,922,768 - Fund balance, end of year $ 1,959,223 $ 1,959,272 $ 2,617,275 $ 658,003 -100- 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, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ - $ - $ 4,437 $ 4,437 Intergovernmental 4,265,290 4,450,447 1,403,273 (3,047,174) Other revenue - - 77,493 77,493 Total revenues 4,265,290 4,450,447 1,485,203 (2,965,244) EXPENDITURES Public safety 100,000 100,000 99,147 853 Public services 681,960 680,920 576,495 104,425 Capital outlay 3,452,344 3,514,186 - 3,514,186 Total expenditures 4,234,304 4,295,106 675,642 3,619,464 Net change in fund balance 30,986 155,341 809,561 654,220 Fund balance, beginning of year 166,545 166,545 166,545 - Fund balance, end of year $ 197,531 $ 321,886 $ 976,106 $ 654,220 -101- 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, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ - $ - $ 743 $ 743 Charges for services 62,000 62,000 68,432 6,432 Intergovernmental 776,900 810,900 542,917 (267,983) Total revenues 838,900 872,900 612,092 (260,808) EXPENDITURES Public services 680,007 714,136 610,629 103,507 Capital outlay 335,182 335,182 40,728 294,454 Total expenditures 1,015,189 1,049,318 651,357 397,961 Net change in fund balance (176,289) (176,418) (39,265) 137,153 Fund balance, beginning of year 176,418 176,418 176,418 - Fund balance, end of year $ 129 $ - $ 137,153 $ 137,153 -102- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Solid Waste -Special Revenue Fund Year Ended June 30, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Taxes $ 285,000 $ 285,000 $ 280,127 $ (4,873) Use of money and property 13,000 13,000 14,044 1,044 Charges for services 2,700 2,700 3,140 440 Intergovernmental 20,300 20,300 10,191 (10,109) Other revenue 5,000 5,000 - (5,000) Total revenues 326,000 326,000 307,502 (18,498) EXPENDITURES Public services 307,019 313,247 289,310 23,937 Total expenditures 307,019 313,247 289,310 23,937 Net change in fund balance 18,981 12,753 18,192 5,439 Fund balance, beginning of year 1,015,956 1,015,956 1,015,956 - Fund balance, end of year $ 1,034,937 $1,028,709 $1,034,148 $ 5,439 -103- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Capital Projects -Capital Projects Fund Year Ended June 30, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ - $ - $ 1,272 $ 1,272 Total revenues - - 1,272 1,272 EXPENDITURES Total expenditures - - - - Excess of revenues over expenditures - - 1,272 1,272 OTHER FINANCING SOURCES (USES) Transfers in 60,000 60,000 - (60,000) Total other financing sources (uses) 60,000 60,000 - (60,000) Net change in fund balance 60,000 60,000 1,272 (58,728) Fund balance, beginning of year 92,433 92,433 92,433 - Fund balance, end of year $ 152,433 $ 152,433 $ 93,705 $ (58,728) -104- 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, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 50,000 $ 50,000 $ 49,927 $ (73) Total revenues 50,000 50,000 49,927 (73) EXPENDITURES Capital outlay 3,457,629 3,456,362 41,575 3,414,787 Total expenditures 3,457,629 3,456,362 41,575 3,414,787 Net change in fund balance (3,407,629) (3,406,362) 8,352 3,414,714 Fund balance, beginning of year 3,637,134 3,637,134 3,637,134 - Fund balance, end of year $ 229,505 $ 230,772 $ 3,645,486 $ 3,414,714 -105- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Equipment Replacement -Capital Projects Fund Year Ended June 30, 2014 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 5,000 $ 5,000 $ 6,783 $ 1,783 Other revenue - - 11,500 11,500 Total revenues 5,000 5,000 18,283 13,283 EXPENDITURES Capital outlay 59,000 142,023 135,044 6,979 Total expenditures 59,000 142,023 135,044 6,979 Excess (deficiency)of revenues over(under) expenditures (54,000) (137,023) (116,761) 20,262 OTHER FINANCING SOURCES (USES) Transfers in - 2,252,366 2,252,366 - Total other financing sources (uses) - 2,252,366 2,252,366 - Net change in fund balance (54,000) 2,115,343 2,135,605 20,262 Fund balance, beginning of year 258,443 258,443 258,443 - Fund balance, end of year $ 204,443 $ 2,373,786 $ 2,394,048 $ 20,262 -106- City of Moorpark Statement of Fiduciary Net position Agency Funds Year Ended June 30, 2014 Balance Balance June 30, 2013 Additions Deletions June 30, 2014 General Trust Assets Cash and investments $ 3,895,779 $ 8,074,709 $ (7,960,622) $ 4,009,866 Cash and investments with fiscal agent 6,824,889 6,709,494 (6,097,193) 7,437,190 Accounts receivable 16,675 61,038 (16,643) 61,070 Total assets $ 10,737,343 $ 14,845,241 $ (14,074,458) $ 11,508,126 Liabilities Accounts payable $ 82,149 $ 1,029,343 $ (875,251) $ 236,241 General deposits 3,803,596 1,189,862 (1,219,804) 3,773,654 Due to bondholders 6,851,598 6,929,583 (6,282,950) 7,498,231 Total liabilities $ 10,737,343 $ 9,148,788 $ (8,378,005) $ 11,508,126 -107- STATISTICAL SECTION 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 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 Position by Component Last Ten Fiscal Years (Accrual basis of accounting) 2005 2006 2007 2008 2009 Governmental activities: Invested in capital assets, net of related debt $ 99,760,671 $ 108,190,324 $ 125,900,770 $ 130,071,108 $ 130,581,499 Restricted 46,405,391 57,986,366 100,649,409 101,613,368 94,878,693 Unrestricted 26,413,978 26,965,428 6,458,224 3,641,173 14,213,503 Total governmental activities net position $ 172,580,040 $ 193,142,118 $233,008,403 $235,325,649 $239,673,695 The City of Moorpark does not have any business-type activities. -108- CITY OF MOORPARK Net Position by Component Last Ten Fiscal Years (Accrual basis of accounting) 2010 2011 2012 2013 2014 Governmental activities: Invested in capital assets, net of related debt $ 141,095,551 $ 145,841,042 $ 139,795,930 $262,271,564 $259,798,991 Restricted 91,504,803 72,654,599 87,274,980 82,125,331 85,872,675 Unrestricted 15,828,208 13,402,969 7,909,301 10,042,168 15,655,932 Total governmental activities net position $248,428,562 $231,898,610 $234,980,211 $354,439,063 $361,327,598 -109- CITY OF MOORPARK Changes in Net Position Last Ten Fiscal Years (Accrual basis of accounting) 2005 2006 2007 2008 2009 Expenditures: General government $3,030,395 $ 3,044,381 $ 1,639,628 $ 1,949,206 $ 2,041,596 Public safety 5,709,323 6,230,057 6,317,283 6,882,072 7,035,384 Public services 9,844,050 13,106,843 21,231,766 20,580,204 18,170,325 Parks and recreation 2,304,852 2,771,270 4,293,823 4,551,045 4,470,524 Interest on long-term debt 978,843 1,333,370 1,332,541 1,773,841 1,616,843 Total governmental activities expenses 21,867,463 26,485,921 34,815,041 35,736,368 33,334,672 Program revenues: Charges for services: General government 2,010,540 2,201,590 191,674 283,576 232,926 Public safety 344,019 340,341 598,500 633,131 538,636 Public services 2,776,976 4,163,781 6,612,769 5,743,200 3,172,708 Parks and recreation 501,283 536,166 604,904 756,885 644,979 Total charges for services 5,632,818 7,241,878 8,007,847 7,416,792 4,589,249 Operating contributions and grants 2,313,834 3,237,143 4,489,945 7,113,883 6,172,315 Capital contributions and grants 4,633,166 18,027,831 38,337,638 5,481,972 3,326,778 Total governmental activities program revenues 12,579,818 28,506,852 50,835,430 20,012,647 14,088,342 Net program revenues (expenses) (9,287,645) 2,020,931 16,020,389 (15,723,721) (19,246,330) General revenues and other changes in net position: Taxes: Property tax 2,655,093 2,929,842 3,334,491 4,505,980 7,802,643 Property tax, Redevelopment Agency 3,901,779 5,530,198 6,347,692 6,887,079 7,054,432 Franchise tax 955,829 1,080,893 1,126,951 1,150,180 1,171,556 Sales tax 2,046,368 2,260,786 2,192,327 2,306,281 2,329,522 Sales tax in lieu 537,485 608,298 704,562 779,263 849,227 Motor vehicle in lieu 2,836,154 2,734,470 2,860,207 3,038,440 125,307 Investment income 1,725,579 3,261,384 6,556,186 2,491,856 2,875,649 Contributed Capital - - - - - Other 1,160,805 135,276 58,841 139,728 386,040 Gain on sale of property 48,339 - 276,797 - - County settlement - - - - 1,000,000 Extraordinary item-Gain on Dissolution of - - - - - Total governmental activities 15,867,431 18,541,147 23,458,054 21,298,807 23,594,376 Changes in net position- governmental activities $6,579,786 $20,562,078 $39,478,443 $ 5,575,086 $ 4,348,046 -110- CITY OF MOORPARK Changes in Net Position Last Ten Fiscal Years (Accrual basis of accounting) 2010 2011 2012 2013 2014 Expenditures: General government $ 1,603,279 $ 3,201,184 $ 2,217,953 $ 4,149,965 $ 2,169,069 Public safety 7,016,015 7,070,049 6,158,455 6,550,936 6,882,753 Public services 13,589,878 31,775,462 11,124,523 9,948,865 11,779,873 Parks and recreation 4,934,002 4,658,717 5,704,208 5,755,528 6,026,182 Interest on long-term debt 1,504,502 1,492,604 354,412 - - Total governmental activities expenses 28,647,676 48,198,016 25,559,551 26,405,294 26,857,877 Program revenues: Charges for services: General government 258,431 293,008 407,883 587,915 1,474,249 Public safety 477,305 492,847 445,642 809,257 2,657,332 Public services 2,769,641 2,473,770 1,988,453 4,154,598 7,815,032 Parks and recreation 643,593 697,787 858,333 973,761 1,913,045 Total charges for services 4,148,970 3,957,412 3,700,311 6,525,531 13,859,658 Operating contributions and grants 4,128,842 5,999,168 3,702,582 3,533,608 4,364,461 Capital contributions and grants 1,970,931 1,703,076 2,106,706 1,879,634 2,010,143 Total governmental activities program revenues 10,248,743 11,659,656 9,509,599 11,938,773 20,234,262 Net program revenues (expenses) (18,398,933) (36,538,360) (16,049,952) (14,466,521) (6,623,615) General revenues and other changes in net position: Taxes: Property tax 7,449,063 7,287,282 6,943,275 6,776,729 6,841,765 Property tax, Redevelopment Agency 6,864,777 6,755,960 3,389,064 - - Franchise tax 1,171,825 1,207,778 1,231,741 1,222,956 1,222,759 Sales tax 2,382,010 2,577,105 2,622,419 2,730,871 2,695,884 Sales tax in lieu 588,635 940,791 857,217 875,160 1,089,362 Motor vehicle in lieu 109,136 170,592 18,590 19,262 15,942 Investment income 853,074 856,413 1,206,622 142,222 1,153,683 Contributed Capital - - 663,818 - - Other 283,372 212,487 245,235 299,730 492,755 Gain on sale of property - - - - County settlement - - - - Extraordinary item-Gain on Dissolution of - - 356,845 - - Total governmental activities 19,701,892 20,008,408 17,534,826 12,066,930 13,512,150 Changes in net position- governmental activities $ 1,302,959 $ (16,529,952) $ 1,484,874 $(2,399,591) $ 6,888,535 -111- CITY OF MOORPARK Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) 2005 2006 2007 2008 2009 General fund: Reserved $ 5,772,444 $ 2,943,353 $ - $ 95,397 $ 373,209 Unreserved 12,527,255 18,301,058 24,405,620 3,625,348 2,832,620 Nonspendable - - - - - Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - - - - - Total general fund $18,299,699 $21,244,411 $ 24,405,620 $ 3,720,745 $ 3,205,829 All other governmental funds: Reserved $13,889,036 $14,124,235 $ 41,864,116 $ 35,103,620 $ 33,719,016 Unreserved, reported in: Special revenue funds 26,977,320 36,903,391 41,486,631 42,761,089 37,278,628 Capital projects funds 3,361,134 1,293,998 16,807,370 39,098,065 35,699,829 Debt Service funds (346,716) (321,425) 83,243 (1,025,927) 261,336 Non-major funds 8,272,652 9,724,941 8,693,969 13,384,413 25,043,397 Fund Balances: Nonspendable - - - - - Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - - - - - Total all other governmental funds $52,153,426 $61,725,140 $ 108,935,329 $ 129,321,260 $ 132,002,206 -112- CITY OF MOORPARK Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) 2010 2011 2012 2013 2014 General fund: Reserved $ 337,286 $ - $ - $ - $ - Unreserved 2,662,713 - - - - Nonspendable - 220,976 1,275,022 635,176 635,899 Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - 2,779,024 2,999,000 3,000,000 3,000,000 Total general fund $ 2,999,999 $ 3,000,000 $ 4,274,022 $ 3,635,176 $ 3,635,899 All other governmental funds: Reserved $ 38,208,807 $ - $ - $ - $ - Unreserved, reported in: Special revenue funds 32,207,690 - - - - Capital projects funds 33,735,939 - - - - Debt Service funds 294,202 - - - - Non-major funds 25,335,288 - - - - Fund Balances: Nonspendable - 14,862,594 3,055,064 10,478,901 10,253,789 Restricted - 66,565,551 55,945,095 44,067,428 49,389,385 Committed - 795,208 783,281 742,546 698,395 Assigned - 28,849,138 30,892,276 33,084,456 36,190,577 Unassigned - (2,124,660) (2,047,164) (2,026,212) (1,825,187) Total all other governmental funds $ 129,781,926 108,947,831 88,628,552 86,347,119 94,706,959 -113- CITY OF MOORPARK Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) 2005 2006 2007 2008 2009 Revenues: Taxes $9,139,722 $12,231,076 $13,706,024 $15,392,269 $19,716,636 Licenses and permits 54,180 72,365 65,630 72,951 645,010 Fines and forfeitures 344,019 340,341 343,579 358,665 484,930 Uses of money and property 1,924,579 3,261,384 7,085,104 5,684,111 3,114,881 Charges for services 2,558,974 2,665,391 338,929 677,277 3,813,159 Intergovernmental 5,150,992 6,302,193 6,163,985 7,549,040 3,948,059 Maintenance assessments 1,963,190 1,845,742 1,922,471 4,205,700 3,491,975 Franchise fees 1,231,763 283,162 292,003 301,514 - Building and safety fees 431,959 1,110,715 716,552 530,761 - Planning and public work fees 1,967,751 3,053,066 1,649,002 1,938,143 - Development fees 2,669,976 15,568,347 6,403,851 4,501,837 - Contributions from prop owners - - 34,066,993 - - Other 2,832,962 397,574 2,030,211 433,378 398,539 Total revenues 30,270,067 47,131,356 74,784,334 41,645,646 35,613,189 Expenditures: Current: General government 2,893,359 2,919,564 1,471,354 1,835,801 1,926,283 Public safety 5,690,820 6,211,461 6,083,917 6,637,757 6,814,425 Public services 8,098,147 11,215,406 9,608,754 12,505,613 11,259,297 Parks and recreation 2,081,723 2,544,206 4,039,888 4,291,867 4,182,091 Capital outlay 7,810,879 10,038,439 19,477,866 14,682,017 8,100,604 Debt service: Principal 405,000 435,910 440,000 455,000 475,000 Interest 1,158,585 1,251,354 1,400,985 1,631,932 1,594,062 Bond issuance costs - - 505,588 - - Total expenditures 28,138,513 34,616,340 43,028,352 42,039,987 34,351,762 Excess of revenues over expenditures 2,131,554 12,515,016 31,755,982 (394,341) 1,261,427 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 1,000,000 Transfers in 2,027,315 3,352,002 9,457,260 27,626,755 17,062,650 Transfers out (2,027,315) (3,352,002) (9,457,260) (27,626,755) (17,062,650) Total other financing sources(uses) 48,339 1,410 11,646,396 - 1,000,000 Extraordinary Item - - - - - Net change in fund balances $2,179,893 $ 12,516,426 $43,402,378 $ (394,341) $ 2,261,427 Debt service as a percentage of non capital expenditures 8.3% 7.4% 8.7% 8.3% 8.6% -114- CITY OF MOORPARK Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) 2010 2011 2012 2013 2014 Revenues: Taxes $18,730,771 $ 19,042,900 $ 16,147,175 $12,662,488 $12,931,981 Licenses and permits 598,370 587,186 561,530 498,102 1,279,619 Fines and forfeitures 436,377 441,543 446,426 420,555 425,844 Uses of money and property 1,547,229 1,537,255 1,381,235 482,129 1,533,697 Charges for services 3,284,275 2,579,593 3,559,454 5,170,238 10,785,334 Intergovernmental 2,629,132 4,786,235 1,627,462 2,503,734 3,257,823 Maintenance assessments 1,950,431 2,112,992 2,114,957 1,893,699 2,159,121 Franchise fees - - - - - Building and safety fees - - - - - Planning and public work fees - - - - - Development fees - - - - - Contributions from prop owners - - - - - Other 587,832 833,082 1,345,246 167,784 438,612 Total revenues 29,764,417 31,920,786 27,183,485 23,798,729 32,812,031 Expenditures Current: General government 1,497,916 2,289,299 890,396 2,125,004 1,746,028 Public safety 6,769,484 6,839,355 6,467,065 6,306,906 6,643,550 Public services 12,343,896 12,876,132 8,321,090 7,391,632 9,126,851 Parks and recreation 4,453,400 4,074,490 5,038,957 5,086,773 5,354,601 Capital outlay 5,548,179 24,506,524 4,679,053 5,144,756 1,580,438 Debt service: Principal 495,000 1,874,064 590,122 - - Interest 1,482,799 1,471,516 688,825 - - Bond issuance costs - - - - - Total expenditures 32,590,674 53,931,380 26,675,508 26,055,071 24,451,468 Excess of revenues over expenditures (2,826,257) (22,010,594) 507,977 (2,256,342) 8,360,563 Other financing sources(uses): Gain from sale of property - - - - - Bond Proceeds - - - - - Discount on Bonds - - - - - County settlements - - - - - Transfers in 9,378,101 3,820,738 4,739,189 3,262,665 4,718,044 Transfers out (9,378,101) (2,644,238) (4,739,189) (3,262,665) (4,718,044) Total other financing sources(uses) - 1,176,500 - - - Extraordinary Item - - (19,553,234) - - Net change in fund balances $ (2,826,257) $ (20,834,094) $ (19,045,257) $ (2,256,342) $ 8,360,563 Debt service as a percentage of noncapital expenditures 7.9% 12.8% 6.2% 0.0% 0.0% -115- This page intentionally left blank CITY OF MOORPARK Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years City Redevelopment Agency Fiscal Year Taxable Taxable Total Ended Less: Assessed Less: Assessed Direct Tax June 30 Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value Rate 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 0.031% 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 0.037% 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 0.037% 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 0.033% 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 0.035% 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 0.038% 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 0.040% 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 0.031% 2013 4,596,277,650 115,888,876 45,786,243 4,757,952,769 867,853,781 70,454,127 4,491,843 942,799,751 1.068% 2014 4,718,569,672 119,712,860 45,054,167 4,883,336,699 878,368,970 70,500,448 4,423,367 953,292,785 1.068% Source: Ventura County Assessor's Office -116- CITY OF MOORPARK Direct and Overlapping Property Tax Rates (Rate per$100 of assessed value) Last Ten Fiscal Years 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 Basic Levy 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Conejo Valley Unified 0.02800 0.02670 0.02490 0.02420 0.02500 0.02640 0.02850 0.03070 0.03240 0.03270 Metropolitan Water District 0.00580 0.00520 0.00470 0.00450 0.00430 0.00430 0.00370 0.00370 0.00350 0.00350 Moorpark Unified 0.03140 0.03660 0.03740 0.03310 0.03510 0.03760 0.03980 0.05750 0.04490 0.03950 Ventura Community 0.01300 0.01300 0.01270 0.00500 0.01520 0.01390 0.01510 0.01400 0.01910 0.01670 2 Total Direct& 1.07820 1.08150 1.07970 1.06680 1.07960 1.08220 1.08710 1.10590 1.09990 1.09240 3 City's Share of 1%Levy 0.07447 0.07447 0.07447 0.07447 0.09094 0.09077 0.90770 0.09077 0.09078 0.09078 4 Redevelopment Rate 1.00580 1.00520 1.00470 1.00450 1.00430 1.00430 1.00370 1.00370 - - 5 Total Direct Rate 0.17341 0.19150 0.19826 0.19963 0.21254 0.21589 0.21304 0.21047 0.21806 0.09508 Notes 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 any voter approved bonds. 2 Overlapping rates are those of local and county governments that apply to property owners within the City.Not all overlapping rates apply to all city property owners. 3 City's share of 1%levy is based on the City's share of the general fund tax rate area with the larges net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures. 4 Redevelopment rates is based on the largest RDA tax rate area and only includes rate(s)from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of Abx1 26 eliminated redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. 5 Total Direct Rates is the weighted average of all individual direct rates applied to by the government preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. Forthe purposed of this report,residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue. Source: HdL,Coren&Cone Ventura County Assessor -117- CITY OF MOORPARK Principal Property Tax Payers Current Year and Ten Years Ago 2014 2004 Percent of Percent of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayers Value * Value Value Value NF Moorpark Multifamily Assoc $ 73,122,239 1.50 % $ - - % Waterstone Properties Moorpark LLC 69,933,039 1.43 % - - Moorpark Center LLC 44,719,000 0.92 % - - Village at Moorpark LLC 30,503,063 0.62 % - - Toll Land XIX LLC 28,632,492 0.59 % 45,749,526 1.33 % EB West Properties Inc. 22,888,798 0.47 % - - Tuscany Square Partners LLC 22,693,311 0.46 % - - G-S Partnership 22,413,963 0.46 % 19,363,532 0.56 % Mission Bell West LP 22,125,629 0.45 % - James Birkenshaw, Et. Al. Lessor 20,739,384 0.42 % 18,200,526 0.53 % $ 357,770,918 7.33 % $83,313,584 2.42 % * 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 2013-2014 property data -118- 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 2005 $ 2,391,927 $ 1,796,670 75.1 % $ 87,669 $ 1,884,339 78.8 % 2006 2,705,083 1,994,418 73.7 % 93,157 2,087,575 77.2% 2007 3,010,493 2,432,164 80.8 % 124,057 2,556,221 84.9% 2008 4,072,510 3,376,883 82.9 % 145,134 3,522,017 86.5% 2009 3,763,078 3,393,933 90.2 % 208,491 3,602,423 95.7% 2010 3,682,559 2,789,672 75.8 % 262,057 3,051,730 82.9% 2011 3,663,098 3,388,402 92.5 % 184,044 3,572,446 97.5% 2012 3,638,780 3,394,794 93.3 % 162,584 3,557,378 97.8% 2013 3,724,968 3,533,421 94.9 % 158,049 3,691,470 99.1 % 2014 3,817,587 3,545,339 92.9 % 125,651 3,670,990 96.2% 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 Subsequent years = Realized Revenue Report, Prior secured Collected within FY = Realized Revenue Report Current secured -119- 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 2005 $ - $ 19,300,000 $ 19,300,000 $19,300,000 1% 537 2006 - 18,880,000 18,880,000 18,880,000 1% 527 2007 - 30,135,000 30,135,000 30,135,000 1% 826 2008 - 29,680,000 29,680,000 29,680,000 1% 803 2009 - 29,185,000 29,185,000 29,185,000 1% 787 2010 - 28,710,000 28,710,000 28,710,000 1% 764 2011 - 28,155,000 28,155,000 28,155,000 1% 811 2012 - - - - 0% - 2013 - - - - 0% - 2014 - - - - 0% - 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. Tax Allocation Bonds are the debt of the Successor Agency and not a part of the City. Please read NOTE 14, pages 62-65. 2 These ratios are calculated using personal income and population for the prior calendar year. -120- 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 1 Total Value 2 Capita 2005 $ - $ 19,300,000 $ 19,300,000 0.5 % 537 2006 - 18,880,000 18,880,000 0.4 % 527 2007 - 30,135,000 30,135,000 0.6 % 826 2008 - 29,680,000 29,680,000 0.5 % 803 2009 - 29,185,000 29,185,000 0.5 % 787 2010 - 28,710,000 28,710,000 0.5 % 764 2011 - 28,155,000 28,155,000 0.5 % 811 2012 - - - - % - 2013 - - - - % - 2014 - - - - % - 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 Tax Allocation Bonds are the debt of the Successor Agency and not a part of the City. Please read NOTE 14, pages 62-65. 2 Assessed value has been used because the actual value of taxable property is not readily available in the State of California. -121- CITY OF MOORPARK Direct and Overlapping Debt City Assessed Valuation 2013-14 $ 4,883,679,669 Redevelopment Agency Incremental Valuation 689,137,423 Adjusted Assessed Valuation $ 4,194,542,246 Estimated Share of Percentage Debt as of Overlapping Applicable 6/30/2013 Debt Direct and Overlapping Tax and Assessment Debt: Metropolitan Water District 0.224% $ 132,275,000 $ 296,296 Ventura Community College District 4.524% 300,628,714 13,600,443 Conejo Valley Unified School District 0.017% 30,791,093 5,234 Moorpark Unified School District 93.183% 59,069,983 55,043,182 City of Moorpark Community Facilities District No.97-1 100.000% 5,235,000 5,235,000 City of Moorpark Community Facilities District No.2004-1 100.000% 19,625,000 19,625,000 City of Moorpark 1915 Act Bonds 100.000% 995,000 995,000 Total Direct and Overlapping Tax&Assessment Debt $ 548,619,790 $ 94,800,156 Overlapping General Fund Obligation Debt: Ventura County General Fund Obligations 4.523% $ 398,360,000 $ 18,017,823 Ventura County Superintendent of Schools COPs 4.523% 11,160,000 504,767 Moorpark Unified School District COPs 93.183% 6,320,000 5,889,166 Total Overlapping General Fund Obligation Debt $ 415,840,000 $ 24,411,755 Overlapping Tax Increment Debt(Successor Agency): 100.000% $ 26,335,000 $ 26,335,000 Combined Total Debt* $ 990,794,790 $ 145,546,911 Total direct and overlapping debt $ 145,546,911 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 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. -122- CITY OF MOORPARK Legal Debt Margin Information Last Ten Fiscal Years 2005 2006 2007 2008 2009 Assessed valuation $3,231,418,940 $3,721,591,791 $4,157,360,033 $4,558,597,806 $4,700,305,496 Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 807,854,735 930,397,948 1,039,340,008 1,139,649,452 1,175,076,374 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 121,178,210 139,559,692 155,901,001 170,947,418 176,261,456 Total net debt applicable to limit: - - - - - Legal debt margin $ 121,178,210 $ 139,559,692 $ 155,901,001 $ 170,947,418 $ 176,261,456 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 -123- CITY OF MOORPARK Legal Debt Margin Information Last Ten Fiscal Years 2010 2011 2012 2013 2014 Assessed valuation $4,619,910,655 $4,659,133,835 $4,662,536,870 $4,596,277,650 $4,718,569,672 Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 1,154,977,664 1,164,783,459 1,165,634,218 1,149,069,413 1,179,642,418 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 173,246,650 174,717,519 174,845,133 172,360,412 176,946,363 Total net debt applicable to limit: - - - - - Legal debt margin $ 173,246,650 $ 174,717,519 $ 174,845,133 $ 172,360,412 $ 176,946,363 Total debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% -124- CITY OF MOORPARK Pledged-Revenue Coverage Last Ten Fiscal Years Fiscal Year Tax Allocation Bonds Ended Tax Debt Service June 30 Increment Principal Interest Coverage 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 - - - n/a 2013 - - - n/a 2014 - - - n/a Note The Moorpark Redevelopment Agency issued $9,860,000 of tax allocation bonds in 1999, $11,625,000 in 2001, and $11,695,000 in 2006. Tax Allocation Bonds are the debt of the Successor Agency and not a part of the City. Please read Note 14 of the Financial Statements. 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. -125- CITY OF MOORPARK Demographic and Economic Statistics Last Ten Calendar Years Household Median Calendar Income Household Unemployment Year Population (in thousands) Income Rate 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 % 2013 34,904 3,494,030 100,104 6.4 % 2014 35,172 3,602,000 102,411 6.2 % Sources: California State Department of Finance -126- CITY OF MOORPARK Principal Employers Current and Ten Calendar Years Ago 2014 Percent of Number of Total Employer Employees Employment PennyMac 1,117 6.24% Moorpark Unified School District 841 4.70% Moorpark College 627 3.50% Pentair Water Pool and Spa 530 2.96% Kavlico 390 2.18% Benchmark Electronics 275 1.54% Target 170 0.95% Kretek International 110 0.61% Ensign-Bickford Aerospace 126 0.70% Test Equity 121 0.68% "Total Employment" as used above represents the total employment of all employers located within City limits. The City does not present 2004 information because date for that year was not available. Source: Chamber of Commerce City-data.com Bureau of Labor Statistics -127- CITY OF MOORPARK Full-time and Part-time City Employees by Function Last Ten Fiscal Years Function 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General government 32 31 30 26 26 26 27 28 27 27 Public safety(crossing guards) 4 7 7 7 6 5 5 3 3 3 Public services 17 17 26 22 22 20 16 18 19 19 Parks and recreation 38 41 49 54 56 55 54 51 58 75 Total 91 96 112 109 110 106 102 100 107 124 Public safety 1 31 31 42 42 38 38 40 39 40 40 1 Police and fire services were provided by the County. Fire= 18 and police= 22 Source: City of Moorpark, Finance department -128- CITY OF MOORPARK Operating Indicators by Function Last Ten Fiscal Years 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Police:(A) Arrests 1,388 1,653 1,890 1,732 1,412 2,207 1,266 1,158 1,120 1,148 Parking citations issued 3,706 2,890 4,160 2,860 3,254 4,969 4,887 5,704 5,129 2,736 Fire:(B) Number of"prime"emergency calls 1,308 1,329 1,351 1,362 1,100 1,945 1,707 2,174 1,851 1,835 Business Inspections` 125 125 123 130 143 115 196 196 132 500 Public works:(C) Street resurfacing(miles) 0.1 - 30.0 3.8 - 5.0 2.0 - 4.5 - Parks and recreation:(D) Number of recreation classes 364 338 479 378 265 419 325 308 300 265 Number of facility rentals 491 338 180 210 186 230 277 118 226 103 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 Dept.; (C)Moorpark Public Works Dept.;-every six years,the City plans to resurface its streets(total street miles=220) (D)Arroyo Vista Recreation Dept.; Active Adult Center. -129- CITY OF MOORPARK Capital Asset Statistics by Function Last Ten Fiscal Years 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 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 78 79 79 79 79 79 79 Streetlights 2,325 2,347 2,497 2,510 2,518 2,518 2,620 2,620 2,620 2,620 Traffic signals 17 17 17 20 20 20 21 21 21 21 Parks and recreation: Parks 15 16 16 16 17 18 18 18 18 18 Community centers 2 2 2 2 2 2 2 2 2 2 Of the streetlights,2,612 are owned by Edison and 8 are owned by the City Source: City of Moorpark -130- This page intentionally left blank