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HomeMy WebLinkAboutACFR 2015 ' P° ' Mktrt ICi/. �yf , 6 M. 117/7 7)7 '4.4,4110• .. California y 3 -144- 1 Y'.J.1 4.,(// a Y Adoi f ,- , .+�r L• ,i 0111 • .ter! "�.l. l x:- M' r. , 1 0 Vtimi ii i IA. ., ....*!... I.F4 ,. . ti ,,,„,„,„.„ ,, ,. Viik : , , 9 icit a.. Comprehensive Annual Financial Report Fiscal Year Ending June 30, 2015 CITY OF MOORPARK, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2015 fILK C44, ,o1;01111117140 101111111,0 '''Apr ria *INN *40 "7 /110 411111 ALIFiiii014 _dr) 2. 41o // -----.."")!C°t :17"grEd Prepared By: Ron Ahlers, Finance Director Irmina Lumbad, Budget& Finance Manager City of Moorpark Table of Contents Year Ended June 30, 2015 PAGE I. INTRODUCTORY SECTION Letter of Transmittal i Directory of City Officials vii Organization Chart viii Certificate of Achievement for Excellence in Financial Reporting ix II. FINANCIAL SECTION Independent Auditor's Report 1 Management's Discussion and 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 the Basic Financial Statements 29 Required Supplementary Information: Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - General Fund 75 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - Street and Traffic Safety Special Revenue Fund 78 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual—Assessments Districts Special Revenue Fund 79 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual— Parks/Public Facilities Special Revenue Fund 80 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - Los Angeles Area of Cont. Special Revenue Fund 81 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual— Low-Mod Housing Asset Special Revenue Fund 82 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual— Prop 1B Local Streets and Roads Special Revenue Fund 83 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual—Community Development Special Revenue Fund 84 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual— Endowment -Special Revenue Fund 85 City of Moorpark Table of Contents (continued) Year Ended June 30, 2015 PAGE Required Supplementary Information -Continued: Other Post-Employment Benefits - Schedule of Funding Progress 86 Schedule of the City's Proportionate Share of the Plan's Net Pension Liability and Related Ratios as of the Measurement Date - Last 10 Years 87 Schedule of Plan's Contributions - Last 10 years 88 Notes to the Required Supplementary Information 89 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 90 Non-Major Governmental Funds 91 Non-Major Governmental Funds - Combining Balance Sheet 93 Non-Major Governmental Funds - Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 99 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual: Library Services Special Revenue Fund 105 Traffic Safety Special Revenue Fund 106 City Affordable Housing Special Revenue Fund 107 State Gas Tax Special Revenue Fund 108 Art in Public Places Special Revenue Fund 109 State and Federal Assistance Special Revenue Fund 110 Local Transportation Transit Special Revenue Fund 111 Solid Waste Special Revenue Fund 112 City Hall Building Capital Projects Fund 113 Equipment Replacement Capital Projects Fund 114 Statement of Changes in Fiduciary Assets and Liabilities -Agency Funds 115 III. STATISTICAL SECTION Net Position by Component - Last Ten Fiscal Years 116 Changes in Net Position - Last Ten Fiscal Years 118 Fund Balances of Governmental Funds - Last Ten Fiscal Years 120 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 122 City of Moorpark Table of Contents (continued) Year Ended June 30, 2015 PAGE III. STATISTICAL SECTION - Continued Assessed Value and Estimated Actual Value of Taxable Property- Last Ten Fiscal Years 124 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 125 Principal Property Tax Payers- Current Year and Ten Years Ago 126 Secured Property Tax Levies and Collections- Last Ten Fiscal Years 127 Ratios of Outstanding Debt by Type- Last Ten Fiscal Years 128 Ratio of General Bonded Debt Outstanding- Last Ten Fiscal Years 129 Direct and Overlapping Debt 130 Legal Debt Margin Information- Last Ten Fiscal Years 131 Pledged Revenue Coverage- Last Ten Fiscal Years 133 Demographic and Economic Statistics- Last Ten Calendar Years 134 Principal Employers-Current and Ten Calendar Years Ago 135 Full-Time and Part-Time City Employees by Function- Last Ten Fiscal Years 136 Operating Indicators by Function- Last Ten Fiscal Years 137 Capital Asset Statistics by Function- Last Ten Fiscal Years 138 INTRODUCTORY SECTION This page intentionally left blank. PQ P�4�� F / 9City f21oopar/ 0Rrto Jo' 799 Moorpark Avenue, Moorpark, California 93021 (805) 517-6200 fax(805) 532-2545 December 30, 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, 2015. 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 2014/15. 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. -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 lx 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 50 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. -iii- ANNUAL AUDIT An independent accounting firm has performed the annual audit of the City's financial statements for the fiscal year ended June 30, 2015. As part of the annual audit, reviews are made to determine the adequacy of the City's internal control structure, as well as to determine that the City has complied with certain provisions of laws and regulations. Their examination has been completed and the auditor's report on the City's financial statements is included at the beginning of the Financial Section of this report. APPROPRIATION LIMIT Article XIIIB of the California Constitution (Proposition 4), commonly referred to as the "Gann Initiative" was approved by California voters in 1979, which placed limits on the amount of proceeds of taxes that State and Local agencies can appropriate and spend each fiscal year. In addition, voters approved Proposition 111 in 1990 to further increase the accountability of local government in adopting their limits by requiring the governing body to annually adopt, by resolution, an appropriation limit for the upcoming fiscal year. The appropriation limit and the City's appropriations subject to the limit for fiscal year 2014/2015 amounted to $31,561,052 and $14,924,934 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, 2015, approximately $35 million was invested with the Ventura County Pool; $80 million in various U.S. Treasury Notes, Agency Securities and money markets; about $3.0 million in the State Treasurer's Local Agency Investment Fund (LAIF); and $3 million was invested in demand deposits. The cash management system of the City is designed to monitor revenues and expenditures to ensure the investment of monies to the fullest extent possible. The criteria for selecting investments and the order of priority are (a) safety, (b) liquidity, and (c) yield. The underlying objective of the City's policy is to obtain the highest interest rate yields, and at the same time, ensure that money is available when needed and all deposits are insured by the Federal Deposit Insurance Corporation or collateralized. CAPITAL ASSETS In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the Government-Wide Statement of Net Assets. The City elected to use the basic approach for all infrastructures reporting, whereby depreciation expense and accumulated depreciation have been recorded. Capital assets for the fiscal year ended June 30, 2015 have a net ending balance of $260 million. -iv- LONG-TERM LIABILITIES/BONDED INDEBTEDNESS At June 30, 2015, the City has no outstanding bonds but does have long-term liabilities in the approximate amount of $5.1 million comprised of $0.6 million for employee compensated absences (accrued leave) and $4.4 million in net pension liability. 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. The City implemented GASB 68 this year. GASB 68 requires the City to record net pension liability on the Statement of Net Position. This is the first year the City has recorded a net pension liability and the impact is a reduction in net position by $4,430,102 for June 30, 2015. In January 2015, the City contributed $3.6 million towards the net pension liability. Please read Note 7 - RETIREMENT PLAN for a discussion on the City's retirement plans and the net pension liability. 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, 2015, and shows the OPEB liability is 81% funded. The City contributed $644,768 in October 2015 to fully fund the OPEB liability. The City has a "Net OPEB Asset" of $109,000 on the Statement of Net Position. Please see Note 8 -OTHER POST EMPLOYMENT BENEFITS in the CAFR. The Successor Agency has the 2006 Tax Allocation Bonds (2006 Bonds) and the 2014 Tax Allocation Refunding Bonds (2014 Bonds). The 2006 Bonds and 2014 Bonds outstanding principal as of June 30, 2015 were $11.5 million and $13.4 million, respectively. The purpose of the 2006 bonds were to finance a portion of the costs of implementing the Redevelopment Plan and fund redevelopment activities within the Agency project area. In November 2014, the Successor Agency issued the 2014 Bonds to refund the 1999 Tax Allocation Refunding Bonds and the 2001 Tax Allocation Bonds. 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, 2014. 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. -v- A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENT We would like to express appreciation to all City staff that assisted and contributed to the preparation of this report, particularly to the members of the Finance Department. We would also like to extend our appreciation to the auditors, Rogers, Anderson, Melody & Scott, LLP, Certified Public Accountants for their professional assistance. As in the past, the CAFR is available on the City's website at www.MoorparkCA.gov. Respectfully submitted, �//fffff air-\ �-- STEVEN KUENY RON AHLERS CITY MANAGER FINANCE DIRECTOR -vi- 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, 2015 DIRECTORY OF CITY OFFICIALS CITY COUNCIL Janice S. Parvin, Mayor Roseann Mikos, Councilmember David Pollock, Councilmember Keith F. Millhouse, Mayor Pro Tern Mark Van Darn, Councilmember CITY MANAGEMENT STAFF Steven Kueny, City Manager Deborah Traffenstedt, Assistant City Manager David Bobardt, Community Development Director David Klotzle, City Engineer/Public Works Director Jeremy Laurentowski, Parks & Recreation Director Ron Ahlers, Finance Director -vii- r -ti CITY OF MOORPARK Arts ORGANIZATION CHART Commission —, I Parks and Honorable City Recreation -- Council City Attorney Commission (Contract) I - -I Planning __ICity Manager Commission I Library _-. Board 1 Police Services (Contract) 4 i 1 - N. ' Parks, Recreation r r Community Administrative Community City Engineer, Finance Development Services Services Public Works Department Department Department Department Department 4 J J • Building and Safety • City Clerk • Art in Public Places • Assessment District Street • Cash Management • Code Compliance • Human Resources • Parks and Landscape Lighting • Central Services • Permits • Risk Management Maintenance • Capital Projects • Finance and Accounting • Planning • Information Systems • Recreation • Crossing Guards • Fixed Assets Management • Business Registration • Cable Television • Active Adult Center • NPDES • Purchasing • Economic Development • Legislative Relations • Open Space • Parking Enforcement • Franchise Administration • Housing Programs • Public Information Maintenance • Street Maintenance • Budget Development& • Successor Agency to • Intergovernmental • Facility Operations and • Transit Administration the Redevelopment Relations Maintenance • Solid Waste&Recycling Agency • Library • Property Management • Animal Control/Vector • Emergency Management -VIII- Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Moorpark California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2014 , dee ---Executive Director/CEO -ix- This page intentionally left blank. VIA 4414 '4 /01410 0�4 TE a 0‘' FINANCIAL SECTION This page intentionally left blank. RA ROGERS, ANDERSON, MALODY & SCOTT, LLP MCERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948 735 E. Carnegie Dr.Suite 100 San Bernardino,CA 92408 909 889 0871 T Independent Auditor's Report 909 889 5361 F ramscpa.net The Honorable City Council PARTNERS City of Moorpark, California Brenda L.Odle,CPA.MST Terry P.Shea,CPA Kirk A.Franks,CPA Scott W. Manno,CPA,CGMA Report on the financial statements Leena Shanbhag,CPA,MST,CGMA Jay H.Zercher,CPA(Partner Emeritus) We have audited the accompanying financial statements of the governmental Phillip H.Waller,CPA(Partner Emeritus) activities, each major fund, and the aggregate remaining fund information of the DIRECTORS City of Moorpark (City), California, as of and for the year ended June 30, 2015, Bradierd A.Welebir,CPA,MBA 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 Jenny Liu.CPA.MST Management's responsibility for the financial statements 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 Brigitta Bartha,CPA in the United States of America; this includes the design, implementation, and Gardenya Duran,CPA maintenance of internal control relevant to the preparation and fair presentation Juan Romero,CPA of financial statements that are free from material misstatement, whether due to Ivan Gonzales,CPA,MSA fraud or error. Brianna Pascoe,CPA Daniel Hernandez,CPA.MBA 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. MEMBERS In making those risk assessments, the auditor considers internal control relevant American Institute of Certified Public Accountants to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but PCPS The AICPA Alliance not for the purpose of expressing an opinion on the effectiveness of the entity's for CPA Firms internal control. Accordingly, we express no such opinion. An audit also includes Governmental Audit evaluating the appropriateness of accounting policies used and the Quality Center reasonableness of significant accounting estimates made by management, as California Society of well as evaluating the overall presentation of the financial statements. Certified Public Accountants We believe that the audit evidence we have obtained is sufficient and appropriate 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, as of June 30, 2015, 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 Change in Accounting Principle As discussed in Note 1 of the financial statements, the City adopted the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions — An Amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - An Amendment of GASB Statement No. 68. 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 management's discussion and analysis, budgetary comparison information, OPEB schedule of funding progress, schedule of the City's proportionate share of the plans' net pension liability and related ratios as of the measurement date, and schedule of plan's contributions 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'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 December 30, 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. Imo 0.4) Cl'nc( Won_ OODthi Soar r, LLP San Bernardino, CA December 30, 2015 -3- This page intentionally left blank. v 411A wig,Lrip\O.i,OW11?;;Otalk 407411.1. ar 401%. inatigrit W. -.I J % 4\ /1 K ,_,11ffiditir PE a O'er 0 Management's Discussion and Analysis This page intentionally left blank. City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2015 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, 2015. 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 2014/15 by $372,194,413 (Net Position). Of this amount, $22,642,705 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" ($260,051,061). Restrictions for Special Revenue Funds amounts to $89,500,647, this reduces the Total Net Position to the Unrestricted Net Position ($22,642,705). The Statement of Net Position is presented on page 15. • The City's Total Net Position increased by $16,043,205 during the current fiscal year. The Statement of Activities is presented on page 16. • As of June 30, 2015, the City's governmental funds (General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds) reported combined ending fund balances of $109,924,503, an increase of $11,581,645, 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 $3,660,018 ($660,077 is in nonspendable form, and $2,999,941 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 Year Ended June 30, 2015 The Statement of Net Position presents information on all of the City's assets, deferred inflows of resources, liabilities, and deferred outflows of resources, with the difference between them 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. -5- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2015 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, Parks/Public Facilities, Los Angeles Area of Contribution, Low-Moderate Income Housing Asset, Prop 1B Local Streets and Roads, Community Development, Endowment, 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. The City adopts an annual budget for the majority of its funds. A budgetary comparison statement is provided for 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 private purpose trust fund 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, fund equity and operations of the dissolved Redevelopment Agency were transferred to the "Successor Agency Private Purpose Trust Fund". Notes to the Basic Financial Statements. The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 29-74 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 $372 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 the schedule below, the largest portion of the City's net position (70%) 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. -6- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2015 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 (6%) 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, 2015, 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. Net Position Governmental Activities As of June 30, 2015 and 2014 2015 2014 Assets: Current and other assets $ 117,169,350 $ 104,830,895 Capital Assets 260,051,061 259,798,991 Total Assets: 377,220,411 364,629,886 Deferred Outflows of Resources: Pension related 4,505,847 - Liabilities: Other liabilities 7,994,979 3,302,288 Total Liabilities: 7,994,979 3,302,288 Deferred Inflows of Resources: Pension related 1,536,866 - Net Position: Net invested in capital assets 260,051,061 259,798,991 Restricted 89,500,647 85,872,675 Unrestricted 22,642,705 15,655,932 Total Net Position, as restated $ 372,194,413 $ 361,327,598 The City's net position increased by $16 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 Year Ended June 30, 2015 Changes in Net Position Governmental Activities For the Years Ended June 30, 2015 and 2014 2015 2014 Revenues: Program Revenues: Charges for services $ 18,380,410 $ 13,859,658 Operating contributions and grants 4,049,606 4,364,461 Capital contributions and grants 4,636,843 2,010,143 General Revenues: Property taxes, levied for general purposes 7,638,300 6,841,765 Franchise taxes 1,284,268 1,222,759 Sales taxes 2,749,320 2,695,884 Sales taxes in lieu 896,527 1,089,362 Motor vehicle in lieu tax, unrestricted 15,399 15,942 Investment income 1,116,545 1,153,683 Other 685,569 492,755 Total Revenues: 41,452,787 33,746,412 Expenses: General government 1,212,685 2,169,069 Public safety 7,024,242 6,882,753 Public services 11,558,575 11,779,873 Parks and recreation 5,614,080 6,026,182 Total Expenses: 25,409,582 26,857,877 Increase (decrease) in net position 16,043,205 6,888,535 Net position, beginning of year, as restated 356,151,208 354,439,063 Net position, end of year $ 372,194,413 $ 361,327,598 -8- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2015 Program Revenues Capital Contributions and Grants,17% i 'HilW1114'144111161 1 Charges for Services,68% Operating Contributions and Grants,15% tail General Revenues Investment income, 8% Other,5 Motor vehicle in lieu tax,0% Property tax,53 Sales tax in lieu,6 ipP Sales tax,19% 4 Franchise fee,9 -9- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2015 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 $109,924,503. This is an increase of $11,581,645 in comparison with the prior year. $11,023,393 or 10% is nonspendable, $54,572,775 or 50% is restricted to specific purpose, $711,399 or 1% is committed, $42,221,565 or 38% is assigned and $1,395,371 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 $3,660,018, which increased by $24,119 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 2013/2014 are as follows: • The City's property tax revenues increased by $796,535 or 6.9%. • Sales tax revenues increased by approximately $53,436 or 2.0%. • The Sales Tax Compensation or "triple flip" decreased by $192,834 or 17.7%. Last year the City received amounts due from the prior years. • Interest earnings decreased by$86,317 or 25.5% due to market value losses. • Expenditures and transfers out ended the year approximately $3.4 million more than the prior year figure due to the pay down on the pension debt and an increase in the transfer to the Special Projects Fund. -10- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2015 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 $1.9 million due to increased fees by new development within the City. Assessment District Fund The fund balance of the Assessment District Fund decreased by $68,213 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 $2.1 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 $73,585 from the prior year due to increased fees by new development within the City. Low-Mod 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 In Fiscal Year 2013/2014, this fund received a grant in the amount of $1.1 million approximately for the purchase of two CNG busses and the expansion of the Moorpark Metro link North Parking. Community Development Fund This fund experienced a 10% decrease in fees and activities due to new housing development within the City. Endowment Fund The fund balance of the Endowment Fund increased by $6.4 million from Fiscal Year 2013/2014. This is due to increased development activity within the City. -11- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2015 Police Facilities Fee Fund The fund balance of the Police Facilities Fund improved by $220,617 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 $2 million this past year. The Special Projects Fund transferred about $2.9 million to pay down the pension liability of the City. The June 30, 2015 fund balance is about$24.6 million. Non-Major Governmental Funds The fund balance of all other Non-Major Governmental Funds grew by $1.7 million from the previous fiscal year due to increased fees from new development within the City. 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, 2015, were revenues exceeding expenditures by approximately $2 million which was transferred to the Special Projects Fund. Revenues plus Transfers In were $82,788 less than the budget and expenditures plus Transfers Out ended the year under budget by$3.1 million. -12- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2015 CAPITAL ASSET AND LONG-TERM LIABILITIES Capital Assets. The City's investment in capital assets as of June 30, 2015, amounted to $260 million (net of accumulated depreciation). This investment, detailed in the table below, includes land, rights of way, construction in progress, buildings and improvements, machinery and equipment, and infrastructure. The total increase in the City's investment in capital assets for the current fiscal year was $0.3 million. 2015 2014 Land $ 41,079,642 $ 39,380,903 Rights of Way 123,066,830 123,066,830 Construction in Progress 12,015,023 10,529,962 Buildings and inprovements 26,662,019 27,733,353 Machinery and equipment 2,440,750 2,481,206 Infrastructure 54,786,797 56,606,737 Total $ 260,051,061 $ 259,798,991 As a result of the implementation of GASB No. 34, the City has continued to account for infrastructure assets on its financial statements. The accompanying government-wide financial statements include those infrastructure assets that were either completed during the current fiscal year or considered construction in progress at current fiscal year-end. Additional information on the City's capital assets can be found in Note 5 on page 48 of this report. Long-term Liabilities At the end of the current fiscal year, the City's long-term liabilities outstanding are $5,079,460, which are the net pension liability and 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. The City implemented GASB 68, Accounting and Financial Reporting for Pensions, this fiscal year. The net pension liability is $4.4 million for the City. In January 2015, the City contributed $3.6 million to pay down this net pension liability. This contribution will be realized in next year's actuarial report. 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 growth. -13- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2015 The State's "Triple Flip" payment plan remains in effect as the State repaid the $15 billion deficit reduction bonds in Fiscal Year 2015/2016. The impact to the City will be on cash flow during Fiscal Year 2015- 2016 and the restoration of the full 1% of Bradley-Burns Sales Tax. 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 2015/2016, the City took into consideration the following factors in preparing the budget: • Sales Tax revenues assume a minor increase from fiscal year 2014/2015. • 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%. • Decrease of 3.029% in PERS employer retirement rate from 11.032% to 8.003% effective July 1, 2015. This is a direct result of the $3.6 million pay down of net pension liability. • 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 2015/2016 when compared to fiscal year 2014/2015 actual payments. A priority of the City is to maintain high quality of services while adopting a balanced budget. As in prior years, the fiscal year 2015/2016 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. q041 �l2 ZillinBASIC FINANCIAL STATEMENTS City of Moorpark Statement of Net Position June 30, 2015 Governmental Activities ASSETS Cash and investments $ 104,110,384 Receivables, net: Accounts 1,888,968 Interest 389,355 Prepaid items 59,089 Due from other governments 342,501 Net OPEB asset 109,000 Property held for resale 8,096,221 Long term notes receivables 2,173,832 Capital assets, net of accumulated depreciation Non-depreciable 177,512,444 Depreciable, net of accumulated depreciation Buildings and improvements 26,662,019 Machinery and equipment 2,440,750 Infrastructure 53,435,848 Total assets 377,220,411 DEFERRED OUTFLOWS OF RESOURCES Pension related 4,505,847 LIABILITIES Accounts payable and accrued liabilities 2,915,519 Noncurrent liabilities: Due within one year 350,181 Due in more than one year 4,729,279 Total liabilities 7,994,979 DEFERRED INFLOWS OF RESOURCES Pesion related 1,536,866 NET POSITION Net investment in capital assets 260,051,061 Restricted for: Public services 51,265,949 Recreation services 4,325,509 Public safety 21,898,653 Housing activities 12,010,536 Unrestricted 22,642,705 Total net position $ 372,194,413 The accompanying notes are an integral part of these financial statements. - 15 - City of Moorpark Statement of Activities Year Ended June 30, 2015 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 $ 1,212,685 $ 1,463,859 $ - $ - $ 251,174 Public safety 7,024,242 3,325,404 - - (3,698,838) Public services 11,558,575 10,471,498 4,049,606 4,636,843 7,599,372 Parks and recreation 5,614,080 3,119,649 - - (2,494,431) Total governmental activities 25,409,582 18,380,410 4,049,606 4,636,843 1,657,277 Total primary government $ 25,409,582 $ 18,380,410 $ 4,049,606 $ 4,636,843 General revenues: Taxes: Property tax,levied for general purpose 7,638,300 Franchise fee 1,284,268 Sales tax 2,749,320 Sales tax in lieu 896,527 Motor vehicle in lieu tax,unrestricted 15,399 Investment income 1,116,545 Other 685,569 Total general revenues 14,385,928 Change in net position 16,043,205 Net position,beginning of year,as restated(see Note 16) 356,151,208 Net position,end of year $ 372,194,413 The accompanying notes are an integral part of these financial statements. - 16 - City of Moorpark Balance Sheet—Governmental Funds June 30, 2015 Special Revenue Street and Assessment General Traffic Safety Districts ASSETS Cash and investments $ 3,773,298 $ 21,675,350 $ 5,290,696 Receivables: Accounts 875,548 24,643 53,542 Interest - - - Notes and loans - - - Due from other funds 10,252 - - Prepaid items 48,933 10,156 - Due from successor agency - - - Property held for resale 611,084 - - Total assets $ 5,319,115 $ 21,710,149 $ 5,344,238 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 1,176,087 $ 68,772 $ 248,645 Due to other funds - - - Unearned revenues 483,010 - - Total liabilities 1,659,097 68,772 248,645 Deferred inflows of resources: Unavailable revenues - - - Deferred loans - - - Total deferred inflows of resources - - - Fund balances: Nonspendable 660,077 10,156 - Restricted - 21,631,221 5,095,593 Committed - - - Assigned - - - Unassigned 2,999,941 - - Total fund balances (deficit) 3,660,018 21,641,377 5,095,593 Total liabilities,deferred inflows of resources and fund balances $ 5,319,115 $ 21,710,149 $ 5,344,238 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 $ 5,280,622 $ 11,733,871 $ 226,694 $ 1,113,166 $ 921,320 4,921 13,609 - 1,309 10,385 182,097 207,258 - - - 250,249 1,790,214 - - - 177,006 - - - - 7,429,564 - - $ 5,285,543 $ 12,356,832 $ 9,653,730 $ 1,114,475 $ 931,705 $ 40,160 $ 85,909 $ 2,578 $ - $ 931,705 919,874 - - - - - 10,000 1,091,037 - 960,034 85,909 12,578 1,091,037 931,705 - 432,346 1,997,472 - - - 432,346 1,997,472 - - 177,006 7,429,564 - - 4,325,509 11,661,571 214,116 23,438 - 4,325,509 11,838,577 7,643,680 23,438 - $ 5,285,543 $ 12,356,832 $ 9,653,730 $ 1,114,475 $ 931,705 - 18 - City of Moorpark Balance Sheet—Governmental Funds (continued) June 30, 2015 Special Revenue Capital Projects Police Facilities Special Endowment Fee Projects ASSETS Cash and investments $ 11,789,027 $ 976 $ 23,719,941 Receivables: Accounts 10,492 102 Interest - - - Notes and loans 6,500 - - Due from other funds 1,428,642 - 919,874 Prepaid items - - - Due from successor agency 342,501 - - Property held for resale - - - Total assets $ 13,577,162 $ 1,078 $ 24,639,815 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 16,558 $ - $ - Due to other funds - 1,428,642 - Unearned revenues - - - Total liabilities 16,558 1,428,642 - Deferred inflows of resources: Unavailable revenues - - - Deferred loans 6,500 - - Total deferred inflows of resources 6,500 - - Fund balances: Nonspendable 1,771,143 - 919,874 Restricted - - - Committed - - - Assigned 11,782,961 - 23,719,941 Unassigned - (1,427,564) - Total fund balances(deficit) 13,554,104 (1,427,564) 24,639,815 Total liabilities,deferred inflows of resources and fund balances $ 13,577,162 $ 1,078 $ 24,639,815 The accompanying notes are an integral part of these financial statements. - 19 - Continued Nonmajor Total Governmental Governmental Funds Funds $ 18,585,423 $ 104,110,384 894,417 1,888,968 389,355 126,869 2,173,832 2,535,774 59,089 342,501 55,573 8,096,221 $ 19,662,282 $ 119,596,124 $ 345,105 $ 2,915,519 187,258 2,535,774 7,079 1,591,126 539,442 7,042,419 66,015 66,015 126,869 2,563,187 192,884 2,629,202 55,573 11,023,393 11,621,327 54,572,775 711,399 711,399 6,718,663 42,221,565 (177,006) 1,395,371 18,929,956 109,924,503 $ 19,662,282 $ 119,596,124 - 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, 2015 Fund balances of governmental funds $ 109,924,503 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. 260,051,061 Long-term notes and loans receivable are not current financial resources and, therefore, are deferred inflows in the governmental funds. 2,563,187 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. 1,657,141 Long term liabilities are not due and payable in the current period and, therefore, are not reported in funds. Compensated absences payable (649,358) Net pension liability (4,430,102) 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. 109,000 Deferred inflows and outflows of resources related to pensions are not reported in the governmental funds: Net deferred inflows of resources (1,536,866) Net deferred otflows of resources 4,505,847 Net position of governmental activities $ 372,194,413 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, 2015 Special Revenue Street and Assessment General Traffic Safety Districts REVENUES Taxes $ 12,285,684 $ - $ - Licenses and permits 143,334 - - Fines and forfeitures 208,150 - - Use of money and property 525,452 262,735 58,864 Charges for services 1,276,364 2,921,706 168,801 Intergovernmental 229,415 - - Maintenance assessments - - 2,487,047 Other revenue 293,774 730 24,812 Total revenues 14,962,173 3,185,171 2,739,524 EXPENDITURES Current: General government 2,495,675 - - Public safety 6,410,918 - - Public services 2,320,888 419,409 391,793 Parks and recreation 1,822,537 - 3,897,395 Capital Outlay 370,007 850,679 20,813 Debt service: Interest - - - Total expenditures 13,420,025 1,270,088 4,310,001 Excess (deficiency) of revenues over(under)expenditures 1,542,148 1,915,083 (1,570,477) OTHER FINANCING SOURCES (USES) Transfers in 2,892,546 - 1,502,264 Transfers out (4,410,575) - - Total other financing sources (uses) (1,518,029) - 1,502,264 Net change in fund balances 24,119 1,915,083 (68,213) Fund balances (deficit), beginning of year 3,635,899 19,726,294 5,163,806 Fund balances (deficit), end of year $ 3,660,018 $ 21,641,377 $ 5,095,593 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 $ - $ - $ - $ $ - - - - 1,106,630 - - - - 5,950 55,038 162,759 2,677 13,746 - 2,314,795 1,314,415 19,800 - 1,104,622 - - - - 71,950 2,369,833 1,477,174 22,477 13,746 2,289,152 - - 100 - - 4,138 32,708 26,065 - 3,238,766 255,665 1,370,881 - - - - - 4,476 - - 259,803 1,403,589 30,641 - 3,238,766 2,110,030 73,585 (8,164) 13,746 (949,614) - - - - 949,597 - - - 949,597 2,110,030 73,585 (8,164) 13,746 (17) 2,215,479 11,764,992 7,651,844 9,692 17 $ 4,325,509 $ 11,838,577 $ 7,643,680 $ 23,438 $ - - 23 - City of Moorpark Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended June 30, 2015 Special Revenue Capital Projects Police Facilities Special Endowment Fee Projects REVENUES Taxes $ - $ - $ - Licenses and permits - - - Fines and forfeitures - - - Use of money and property 187,704 689 26,185 Charges for services 4,897,921 219,928 - Intergovernmental 2,142,717 - 2,328 Maintenance assessments - - - Other revenue 29 - - Total revenues 7,228,371 220,617 28,513 EXPENDITURES Current: General government - - - Public safety - - - Public services 182,040 - - Parks and recreation - - - Capital Outlay 648,412 - - Debt service: Interest - - - Total expenditures 830,452 - - Excess (deficiency) of revenues over(under) expenditures 6,397,919 220,617 28,513 OTHER FINANCING SOURCES(USES) Transfers in - - 2,021,222 Transfers out - - (2,892,546) Total other financing sources (uses) - - (871,324) Net change in fund balances 6,397,919 220,617 (842,811) Fund balances (deficit), beginning of year 7,156,185 (1,648,181) 25,482,626 Fund balances (deficit), end of year $ 13,554,104 $ (1,427,564) $ 24,639,815 The accompanying notes are an integral part of these financial statements. - 24 - Continued Non major Total Governmental Governmental Funds Funds $ 1,402,635 $ 13,688,319 - 1,249,964 170,188 384,288 216,550 1,512,399 1,712,874 15,951,226 2,872,172 5,246,632 - 2,487,047 53,902 445,197 6,428,321 40,965,072 - 2,495,775 378,847 6,789,765 3,852,420 10,468,227 12,382 5,732,314 376,413 3,892,870 - 4,476 4,620,062 29,383,427 1,808,259 11,581,645 - 7,365,629 (62,508) (7,365,629) (62,508) - 1,745,751 11,581,645 17,184,205 98,342,858 $ 18,929,956 $ 109,924,503 - 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, 2015 Net change in fund balance-total governmental funds $ 11,581,645 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.Asset deletions also affect the amounts reported in the statement of activities.This activity is reconciled as follows: Capital Outlay Capital outlays and other capital expenditures $ 3,767,999 Depreciation expense (3,418,849) Capital assets deletions, net of accumulated depreciation (97,080) 252,070 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. 29,035 Revenues that are measurable but not available are not recorded as revenues under the modified accrual basis of accounting. 487,715 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. Decrease in compensated absences 2,471 Decrease in OPEB asset (25,000) Pension expense net adjustments 3,715,269 Change in net position of governmental activities $ 16,043,205 The accompanying notes are an integral part of these financial statements. - 26 - City of Moorpark Statement of Fiduciary Net Position June 30, 2015 Successor Agency Private Purpose Agency Trust Fund Fund ASSETS Cash and investments $ 3,084,061 $ 4,273,254 Cash and investments with fiscal agent 3,532,530 5,641,752 Receivable: Accounts - 27,378 Prepaid insurance premium 277,976 Land held for resale 11,402,135 - Contruction in progress 119,736 - Capital assets, net 9,085,029 - Total assets 27,501,467 $ 9,942,384 LIABILITIES Accounts payable 252,256 $ 67,038 General deposits - 4,206,629 Due to City of Moorpark 342,501 - Bonds payable -due within one year 765,000 - Bonds payable -due in more than one year 24,155,000 - Amortizable charges - debt related 266,678 - Due to bondholders - 5,668,717 Total liabilities 25,781,435 $ 9,942,384 NET POSITION Held in trust for the Successor Agency $ 1,720,032 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, 2015 Successor Agency Private-Purpose Trust Fund ADDITIONS RPTTF distribution $ 2,275,190 Investment earnings 75,617 Total additions 2,350,807 DEDUCTIONS Debt service payments - interest 1,451,082 Depreciation 202,519 Amortization of deferred charges 6,774 Other payments 919,660 Total deductions 2,580,035 Change in net position (229,228) Net position, beginning of year 1,949,260 Net position, end of year $ 1,720,032 The accompanying notes are an integral part of these financial statements. - 28 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 NOTE DESCRIPTION PAGE 1 Summary of Significant Accounting Policies 29 2 Cash and Investments 39 3 Notes and Loans Receivable 44 4 Interfund Transactions 46 5 Capital Assets and Depreciation 48 6 Long-Term Liabilities 49 7 Retirement Plan 49 8 Other Post Employment Benefits 59 9 Conduit Debt- Revenue Bonds 61 10 Special Assessment Bonds 62 11 Risk Management 63 12 Classification of Net Position and Fund Balance 66 13 Commitments and Contingencies 69 14 Successor Agency - Private Purpose Trust Fund 70 15 Employees Retirement Plan 74 16 Restatement of Net Position 74 This page intentionally left blank. City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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 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 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, 2015. The following specific criteria were used in determining that the PFA and the IDA are "blended" component units: 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. 4) The PFA and IDA did not issue separate financial statements in the current fiscal year. - 29 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) 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. 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. 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). - 30 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) 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, deferred inflows of resources, liabilities, and deferred outflows of resources, 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. 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, deferred inflows of resources, current liabilities, and deferred outflows of resources are included on the Balance Sheets. - 31 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D) Basis of Accounting and Measurement Focus, (continued) 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 unearned revenues. Expenditures are recorded when the fund liability is incurred, if measurable, except for un-matured 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. 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 fee 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. - 32 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D) Basis of Accounting and Measurement Focus, (continued) The Low and Moderate Income Housing Asset Special Revenue Fund is used to account for the housing assets transferred from the former 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 Low and Moderate Income Housing Fund of the former Agency. The 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. The 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 Endowment Special Revenue 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. The Police Facilities Fee Capital Projects Fund is used to account for the funds used to build the new police facility. The source of revenue is a percentage of permit fees issued. The 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. - 33 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D) Basis of Accounting and Measurement Focus, (continued) 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 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 non-spendable 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, 2015 was $8,096,221. - 34 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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) Unearned and Unavailable Revenue Unearned revenue is recorded for monies collected in advance that have not been earned. Unavailable revenue is recorded when the availability criteria has not been met. As of June 30, 2015, unearned revenue in the Governmental Funds amounted to $1,591,126. The majority of this amount, $1,091,037 is for the purchase of transit buses and another $460,775 reflects an overpayment by the State to the City for the Sales Tax Compensation revenue. Unavailable revenue amounted to $66,015; of which $58,728 represents Transit revenues from the State that were not available as of June 30, 2015. 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 and net pension liability at June 30, 2015. - 35 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) J) Employee Compensated Absences City employees may receive from 20 to 30 days of 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 Memorandum of Understanding (MOU) with the Service Employee International Union. 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. SARA receives incremental property taxes on property within the 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, 2015, in the opinion of the City Attorney, the City had no material claims, which require loss provision in the financial statements. Small claims and judgments are recorded as expenditures when paid. The City's self-insurance program is administered through the California Joint Powers 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. - 36 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) 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) Fund Balance Reporting and Governmental Fund Type Definitions In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, the following fund balance classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used: Nonspendable —amounts that are not in a spendable form (such as inventory) or are required to be maintained intact. Restricted — amounts constrained to specific purposes by their providers (such as grantors, bondholders and higher levels of government), through constitutional provisions or by enabling legislation. Committed — amounts constrained to specific purposes by a government itself, using the highest level of decision-making authority, a City Council Action; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest level action to remove or change the constraint. Assigned — amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. Unassigned—amounts that are for any purpose; positive amounts are reported only in the General Fund. The City Council, establishes (and modifies or rescinds) fund balance commitments by passage of a resolution. The City's Fund Balance Policy authorizes the Finance Director to assign Fund Balances for specific purposes. When both restricted and unrestricted resources are available for use when expenditures are incurred, it is the City's policy to use restricted resource first, then unrestricted resources as they are needed. It is also the City's policy to consider committed amounts as being reduced first, followed by assigned amounts and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. - 37 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) 0) Pension plans For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CaIPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CaIPERS audited financial statements are publicly available reports that can be obtained at California Public Employees Retirement System (CaIPERS) website under Forms and Publications. GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used. Valuation Date (VD) June 30, 2013 Measurement Date (MD) June 30, 2014 Measurement Period (MP) July 1, 2013 to June 30, 2014 P) Implementation of new GASB pronouncements GASB has issued Statement No. 68, Accounting and Financial Reporting for Pensions — An Amendment of GASB Statement No. 27. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities. This statement establishes standards for measuring and recognizing liabilities, deferred outflows of resources, and deferred inflows of resources, and expense/expenditures. For defined benefit pension plans, this Statement identifies the methods and assumptions that should be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. GASB has issued Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date —An Amendment of GASB Statement No. 68. The objective of this Statement is to address an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local government employer or non-employer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability These pronouncements have been implemented for purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense/expenditures. Information about the fiduciary net position of the City's CaIPERS plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value - 38 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 2) CASH AND INVESTMENTS Cash and investments at June 30, 2015, consisted of the following: City Treasury Deposits Demand Deposits $ 2,530,057 Cash on Hand 1,750 Total City Treasury Deposits 2,531,807 City Treasury Investments Local Agency Investment Fund (LAIF) 3,038,486 Ventura County Pool 35,125,117 Highmark Money Market 1,029,387 U.S. Treasury Notes 2,012,580 U.S. Agency Securities: Federal National Mortgage Association 20,741,550 Federal Home Loan Bank 18,893,497 Federal Farm Credit Bank 9,295,715 Federal Home Loan Mortgage Corporation 12,072,260 Federal Agricultural Mortgage Corporation 6,727,300 Total City Treasury Investments 108,935,892 Cash and Investments With Fiscal Agent Money Market 7,921,726 US Treasury Notes 1,252,556 Total Cash and Investments With Fiscal Agent 9,174,282 Total Cash and Investments $ 120,641,981 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 $ 104,110,384 $ 3,084,061 $ 4,273,254 $ 111,467,699 Cash and investments with fiscal agent - 3,532,530 5,641,752 9,174,282 Total $ 104,110,384 $ 6,616,591 $ 9,915,006 $ 120,641,981 - 39 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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 Code 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. - 40 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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. - 41 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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 $ 3,038,486 $ 3,038,486 $ - $ - $ - $ - Ventura County Pool 35,125,117 35,125,117 - - - - Highmark Money Market 1,029,387 1,029,387 - - - - U.S.Treasury Notes 2,012,580 1,001,410 - - 1,011,170 - U.S.Agency Securities: Federal National MTG Assn. 20,741,550 1,004,730 - 7,083,360 7,083,780 5,569,680 Federal Home Loan Bank 18,893,497 4,063,920 1,008,980 990,250 5,728,577 7,101,770 Federal Farm Credit Bank 9,295,715 - - 3,035,880 2,029,140 4,230,695 Federal National MTG Corp. 12,072,260 1,003,060 - 2,002,970 3,095,110 5,971,120 Federal Agric MTG Corp. 6,727,300 - - 3,006,375 2,709,515 1,011,410 Held by bond trustee: Money market funds 7,921,726 7,921,726 - - - - U.S.Treasury Notes 1,252,556 1,252,556 - - - - $ 118,110,174 $ 55,440,392 $ 1,008,980 $ 16,118,835 $ 21,657,292 $ 23,884,675 C) Credit Risk and Concentration of Credit Risk At June 30, 2015, the carrying amount of the City and SARA's combined deposits with financial institutions was $2,530,057. Bank balances, before reconciling items, were $3,107,500 at June 30, 2015, which was collateralized with securities held by the pledging financial institution's trust department. The California Government Code requires California depository banks and savings and loan institutions to secure government organizations' cash deposits by pledging securities as collateral. The 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. - 42 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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 (FDIC). The City, however, does not normally waive the collateralization requirements. As of June 30, 2015, the City and SARA combined have $2,857,500 in excess of the $250,000 limit of FDIC coverage. The $2,857,500 is fully collateralized by the banking institution, per California law. 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 $ 3,038,486 Not Rated 2.6% Ventura County Pool 35,125,117 AAAf 29.7% Highmark Money Market 1,029,387 AAA 0.9% U.S.Treasury Notes 2,012,580 N/A 1.7% U.S.Agency Securities: Federal National MTG Assn. 20,741,550 AA+ 17.6% Federal Home Loan Bank 18,893,497 AA+ 16.0% Federal Farm Credit Bank 9,295,715 AA+ 7.9% Federal National MTG Corp. 12,072,260 AA+ 10.2% Federal Agric MTG Corp. 6,727,300 AA 5.7% Held by bond trustee: Money market funds 7,921,726 Not Rated 6.7% U.S.Treasury Notes 1,252,556 AA+ 1.1% $ 118,110,174 100.0% - 43 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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, 2015, accounts were maintained in the name of the City for$3,038,486. At June 30, 2015, the fair value of the State of California Pooled Money Investment Account (PMIA) including accrued interest was $69,672,945,247. 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$35,125,117 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. As of June 30, 2015, the fair value of the City's position in the pool equals the value of the pool shares. 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. 3) NOTES AND LOANS RECEIVABLE Notes and loans receivable activity for the year ended June 30, 2015, is as follows: Beginning Ending Balance Increases Decreases Balance Notes receivable Deferred property assessments $ 431,674 $ 671 $ - * $ 432,345 Moorpark 20,LP 1,939,927 44,413 (582) * 1,983,758 Total notes receivable 2,371,601 45,084 (582) 2,416,103 Loans receivable Rehabilitation 28,714 - (15,000) 13,714 First-time home buyer assistance-Affordable Housing 22,644 - (7,548) 15,096 CalHome 111,774 - - 111,774 Mountain Recreation&Conservation Authority 6,500 - - 6,500 Total loans receivable 169,632 - (22,548) 147,084 Total loans and notes receivable $ 2,541,233 $ 45,084 $ (23,130) $ 2,563,187 Balance includes accrued interest separately reported in the financial statements. - 44 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 3) NOTES AND LOANS RECEIVABLE (continued) 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, 2015, the principal balance outstanding is $250,249 and accrued interest of $182,096 for a total balance of $432,345. The outstanding balance and accrued interest are due and payable in 2023. 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, 2015 are $1,176,500 and $137,258 respectively fora total of$1,313,758. 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, 2015 are $600,000 and $70,000 respectively for a total of$670,000. The combined amount of principal and accrued interest outstanding at June 30, 2015 is $1,776,500 and $207,258 respectively, for a total of$1,983,758. 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, 2015, was $13,714. 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, 2015 was $15,096. 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 the Basic Financial Statements Year Ended June 30, 2015 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, 2015 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, 2015, 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, 2015 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, 2015, consisted of the following: Receivable Fund Payable fund Amount General Fund Non Major Funds d $ 10,252 Special Revenues-Los Angeles A.O.0 Non Major Funds a 177,006 Special Revenues-Endowment Special Revenues-Police Facilities c 1,428,642 Capital Projects-Special Projects Special Revenues-Parks and Public Facilities b 919,874 $ 2,535,774 a. In the Fiscal Year 2005/2006, the Los Angeles AOC Fund advanced to the Tierra Rejada Road/Spring Road AOC, $600,000 to construct the median landscaping along Tierra Rejada Road. Repayment of the outstanding loan is contingent upon collection of future development fees. The current amount is $177,006. 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 the Basic Financial Statements Year Ended June 30, 2015 4) INTERFUND TRANSACTIONS, (continued) Due to/Due from, (continued) c. In the Fiscal Year 2005/2006, the Endowment Fund advanced to the Police 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 build-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. d. In the current Fiscal Year, the General Fund advanced cash to the Local Transit Program 8c Fund, which posted a negative cash balance. This is considered a short-term borrowing and is expected to be paid in the next fiscal year. Transfers Interfund transfers for the year ended June 30, 2015 consisted of the following: Fund receiving transfers Fund making transfers Amount General Fund Capital Projects-Special Projects 3 $ 2,892,546 Special Revenues-Assessments Districts General Fund 1-3 1,439,756 Non Major Funds 1 62,508 Special Revenues-Community Development General Fund 1-3 949,597 Capital Projects-Special Projects General Fund 2 2,021,222 Total governmental funds transfers $ 7,365,629 (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 CaIPERS pension liability paydown. - 47 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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, 2015: Beginning Ending Balance Additions Deletions Balance Governmental activities: Capital assets,not being depreciated: Land $ 39,380,903 $ 1,698,739 $ - $ 41,079,642 Land Rights-of-Way 123,066,830 - - 123,066,830 Infrastructure-Roadway System 1,204,015 151,943 (5,009) 1,350,949 Construction in progress 10,529,962 3,422,512 (1,937,451) 12,015,023 Total capital assets not being depreciated 174,181,710 5,273,194 (1,942,460) * 177,512,444 Capital assets,being depreciated: Buildings and improvements 38,765,370 - - 38,765,370 Machinery and equipment 6,425,759 345,488 (34,963) 6,736,284 Infrastructure Roadway system 93,378,561 - - 93,378,561 Storm drain system 2,933,748 - - 2,933,748 Parks system 251,434 - - 251,434 Total capital assets being depreciated 141,754,872 345,488 (34,963) * 142,065,397 Less accumulated depreciation/amortization for: Buildings and improvements (11,032,017) (1,071,334) - (12,103,351) Machinery and equipment (3,944,553) (380,641) 29,660 (4,295,534) Infrastructure Roadway system (40,758,397) (1,933,946) - (42,692,343) Storm drain system (324,812) (27,899) - (352,711) Parks system (77,812) (5,029) - (82,841) Total accumulated depreciation (56,137,591) (3,418,849) 29,660 (59,526,780) Total capital assets being depreciated net 85,617,281 (3,073,361) (5,303) 82,538,617 Governmental activities capital assets,net $ 259,798,991 $ 2,199,833 $ (1,947,763) $ 260,051,061 *Certain deletions in the capital assets activity schedule shown above are the result of reclassifications of assets into a different class of asset and disposal of the assets. 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. Depreciation expense was charged to functions of the primary government as follows: Governmental activities: General government $ 54,422 Public safety 234,478 Public services, including general infrastructure 2,452,301 Parks and recreation 677,648 Total depreciation expense-governmental activities $ 3,418,849 - 48 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 6) LONG-TERM LIABILITIES Long-term liability activities for the year ended June 30, 2015, are as follows: Beginning Ending Due within Balance Increases Decreases Balance one year Governmental activities: Net pension liability(see Note 7) $ 6,053,113 $ - $ (1,623,011) $ 4,430,102 $ - Compensated absences 651,829 524,423 (526,894) 649,358 350,181 Governmental activities long-term liabilities $ 6,704,942 $ 524,423 $ (2,149,905) $ 5,079,460 $ 350,181 Employee Compensated Absences The long-term liability at June 30, 2015 is $649,358 for employee compensated absences. The General Fund is primarily expected to liquidate this liability. 7) RETIREMENT PLAN A. General Information about the Pension Plans Plans Descriptions The Plan is a cost-sharing, multiple-employer defined benefit pension plans administered by CaIPERS. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not account purposes), and membership information are listed in the June 30, 2013 Annual Actuarial Valuation Report for the plan. Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. The actuarial valuation report and CaIPERS' audited financial statements are publicly available reports that can be obtained at CaIPERS' website under Forms and Publications, at www.calpers.ca.gov. Benefits Provided CaIPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments (COLA) for each plan are applied as specified by the Public Employees' Retirement Law (PERL). - 49 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 7) RETIREMENT PLAN (continued) A. General Information about the Pension Plans (continued) Benefits Provided(continued) The Plan operates under the provisions of PERL, the California Public Employees' Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CaIPERS Board of Administration. The Plan's authority to establish and amend the benefit terms are set by PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CaIPERS Board. The Plan's provisions and benefits in effect at June 30, 2015 are summarized as follows: Miscellaneous Hire date Prior to January 1, 2013 Benefit formula 2.0% @ 55 Benefit vesting schedule 5 years service Benefit payments monthly for life Retirement age 50 Monthly benefits, as a % of eligible compensation 1.426% to 2.418% Required employee contribution rates 7.00% Required employer contribution rates 11.03% Contributions Section 20814(c) of PERL requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CaIPERS' annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan's actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2014 (the measurement date), the average active employee contribution rate for the respective Miscellaneous Plan is 7.00% percent of annual pay, and the employer's contribution rate is 11.03% percent of annual payroll. Employer contribution rates may change if plan contracts are amended. Employer Contributions for the measurement period ended June 30, 2014 for the plan are $520,745. The City has arraignments with its employees in where the City pays for a portion of the employees' contributions. For employees in the Miscellaneous Plan the City contributes all of the employee portion. For management and unrepresented Miscellaneous Classic employees the City contributes all of the employee portion. - 50 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 7) RETIREMENT PLAN (continued) A. General Information about the Pension Plans (continued) Contributions (continued) The actual employer payments of $520,745 made to CaIPERS by the City during the measurement period ended June 30, 2014 for the Miscellaneous Plan differ from the City's proportionate share of contributions of $586,086 by $65,341, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan. B. Net Pension Liability The City of Moorpark's net pension liability for the Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2014, using an annual actuarial valuation as of June 30, 2013 rolled forward to June 30, 2014 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows. Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2014 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2013 total pension liability. The June 30, 2013 and June 30, 2014 total pension liabilities were based on the following actuarial methods and assumptions: Miscellaneous Valuation Date June 30, 2013 Measurement Date June 30,2014 Actuarial Cost Method Entry Age Normal Asset Valuation Method Market Value Actuarial Assumptions: Discount Rate(2) 7.50% Inflation 2.75% Salary Increases(') 3.30%- 14.20% Investment Rate of Return (2) 7.50% Mortality Rate Table(3) Derived using CALPERS' membership data for all Funds Post Retirement Benefit Increase Contract COLA up to 2% until purchasing power protection allowance floor on purchasing power applies. (1)Annual increases vary by category,entry age,and duration of service. (2)Net of pension plan investments and administrative expenses, includes inflation. (3)The mortality table used was developed based on CaIPERS'specific data.The table includes 20 years of mortality improvements using Society of Actuaries Scale BB.For more details on this table, please refer to the 2014 experience study report. - 51 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 7) RETIREMENT PLAN (continued) B. Net Pension Liability(continued) Actuarial Methods and Assumptions Used to Determine Total Pension Liability(continued) All other actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CaIPERS' website under Forms and Publications. Discount Rate The discount rate used to measure the total pension liability was 7.50 percent for each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CaIPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.50 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.50 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be obtained at CaIPERS' website under the GASB 68 section. According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.50 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.65 percent. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability. This difference was deemed immaterial to the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan. Refer to the sensitivity of the net pension liability to changes in the discount rate section of this note, which provides information on the sensitivity of the net pension liability to changes in the discount rate. CaIPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate will require Board action and proper stakeholder outreach. For these reasons, CaIPERS expects to continue using a discount rate net of administrative expenses for GASB 67 and 68 calculations through at least the 2017-18 fiscal year. CaIPERS will continue to check the materiality of the difference in calculation until such time as they have changed their methodology. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. - 52 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 7) RETIREMENT PLAN (continued) B. Net Pension Liability(continued) In determining the long-term expected rate of return, CaIPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short- term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The following table reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. New Strategic Real Return Real Return Asset Class Allocation Years 1 -101 Years 11+2 Global Equity 47.0% 5.25% 5.71% Global Fixed Income 19.0% 0.99% 2.43% Inflation Sensitive 6.0% 0.45% 3.36% Private Equity 12.0% 6.83% 6.95% Real Estate 11.0% 4.50% 5.13% Infrastructure and Forest Land 3.0% 4.50% 5.09% Liquidity 2.0% (0.55%) (1.05%) Total 100% I An expected inflation of 2.5%used for this period 2 An expected inflation of 3.0%used for this period - 53 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 7) RETIREMENT PLAN (continued) B. Net Pension Liability(continued) Pension Plan Fiduciary Net Position Information about the pension plans' assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CaIPERS' audited financial statements, which are publicly available reports that can be obtained at CaIPERS' website under Forms and Publications, at www.calpers.ca.gov. The plans' fiduciary net position and additions to/deductions from the plans' fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Investments are reported at fair value. The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CaIPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Comprehensive Annual Financial Report closing and final reconciled reserves C. Proportionate Share of Net Pension Liability The following table shows the Plans' proportionate share of the net pension liability over the measurement period. Increase (Decrease) Plan Total Plan Fiduciary Net Plan Net Pension Miscellaneous Plan Pension Liability Position Liability (a) (b) (c ) _ (a) - (b) Balance at: 6/30/2013 (VD) $ 24,637,401 $ 18,584,288 $ 6,053,113 Balance at: 6/30/2014 (MD) (26,103,564) (21,673,462) (4,430,102) Net Changes during 2013-14 $ (1,466,163) $ (3,089,174) $ 1,623,011 - 54 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 7) RETIREMENT PLAN (continued) C. Proportionate Share of Net Pension Liability(continued) Valuation Date (VD), Measurement Date (MD). The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2014, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2013 rolled forward to June 30, 2014 using standard update procedures. The City's proportion of the net pension liability was determined by CaIPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CaIPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CaIPERS' website under Forms and Publications, at www.calpers.ca.gov. The City's proportionate share of the net pension liability for each Plan as of June 30, 2013 and 2014 was as follows: Miscellaneous Proportionate Share -June 30, 2013 0.18473% Proportionate Share -June 30, 2014 0.17925% Change - Increase (Decrease) (0.00548%) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City's proportionate share of the net pension liability for each Plan as of the measurement date, calculated using the discount rate of 7.50 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.50 percent) or 1 percentage-point higher(8.50 percent)than the current rate: Plan Discount Rate - 1% Current Discount Discount Rate + 1% (6.50%) Rate (7.50%) (8.50%) Miscellaneous Plan's Net Pension Liability $ 7,893,072 $ 4,430,102 $ 1,556,166 - 55 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 7) RETIREMENT PLAN (continued) C. Proportionate Share of Net Pension Liability(continued) Subsequent Events On January 27, 2015, the City contributed $3,600,000 to CaIPERS to pay down its Net Pension Liability. Recognition of Gains and Losses Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss: Difference between 5 year straight-line amortization projected and actual earnings All other amounts Straight-line amortization over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple- Employer Plan (PERF C). The EARSL for the Plans for the 2013-14 measurement period is 3.8 years, which was obtained by dividing the total service years of 460,700 (the sum of remaining service lifetimes of the active employees) by 122,789 (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members' probability of decrementing due to an event other than receiving a cash refund. - 56 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 7) RETIREMENT PLAN (continued) D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2013), the net pension liability for the Miscellaneous Plan is $6,053,113, (the net pension liability of the aggregate plans as of June 30, 2013 is $3,276,668,431). For the measurement period ending June 30, 2014 (the measurement date), the City's Miscellaneous First Tier Plan incurred a pension expense of $419,713 (the pension expense for the aggregate plans for the measurement period is $239,824,465. A complete breakdown of the pension expense is as follows: Miscellaneous Plan Risk Pool Employer's Percentage of Description Amounts Share Employer's Share Service Cost $ 338,829,351 $ 779,377 0.23002% Interest on the Total Pension Liability 921,162,366 1,834,011 0.19910% Recognized Differences between Expected and Actual Experience - - N/A Recognized Changes of Assumptions - - N/A Employee Contributions (159,834,203) (424,389) 0.26552% Projected Earnings on Pension Plan Investments (678,133,636) (1,385,228) 0.20427% Recognized Differences between Projected and Actual Earnings on Plan Investments (182,199,413) (372,180) 0.20427% Other Changes in Fiduciary Net Position - - N/A Recognized Portion of Adjustment due to Differences in Proportions - 5,317 N/A Recognized Differences Between Contributions and Proportionalte Share of Contributions - (17,195) N/A Subtotal: Employer's Share of Expense Components $ 239,824,465 $ 419,713 0.17501% Changes of Benefit Terms - Employer's Proportionate Share of Pension Expense $ 419,713 Note: Plan administrative expenses are not displayed in the above pension expense table. Since the expected investment return of 7.50 percent is net of administrative expenses, administrative expenses are excluded from the above table, but implicitly included as part of investment earnings. - 57 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 7) RETIREMENT PLAN (continued) D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (continued) As of June 30, 2014, the City has deferred outflows and deferred inflows of resources related to pensions as follows: Miscellaneous Plan Deferred Outflows Deferred Inflows of of Resources Resources Differences between Expected and Actual Experience - Changes of Assumptions -Net Difference between Projected and Actual Earnings on Pension Plan Investments - (1,488,720) Adjustment due to Differences in Proportions 14,887 - Net Differences between the Employer's Contributions and the Employer's Proportionate Share of Contributions - (48,146) Pension Contributions Subsequent to Measurement Date 4,490,960 - Total $ 4,505,847 $ (1,536,866) These amounts above are net of outflows and inflow recognized in the 2013-14 measurement period expense. $4,490,960 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows: Miscellaneous Plan Measurement Period Ended June 30: Deferred Outflows/(Inflows) of Resources 2015 $ (366,863) 2016 (384,058) 2017 (385,122) 2018 (385,936) E. Payable to the Pension Plan At June 30, 2015, the City reported a payable of $39,498 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2015. - 58 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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 81.5% as of June 30, 2015. 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 0.71 % of the annual covered payroll. For 2015, the City's annual OPEB cost (expense) was $25,000 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 2015 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) 6/30/2015 $ 25,000 0% $ (109,000) 6/30/2014 168,000 494% (134,000) 6/30/2013 455,000 100% - - 59 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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 2015 was as follows: June 30, 2015 Annual required contribution $ 35,000 Add: Interest on net OPEB obligation (10,000) Amortization of NOO - Annual OPEB cost (expense) 25,000 Contributions made - Increase in net OPEB obligation 25,000 Net OPEB obligation (asset) - beginning of year (134,000) Net OPEB obligation (asset) -end of year $ (109,000) Funded Status and Funding Progress The funded status of the plan as of June 30, 2015, the most recent actuarial valuation applicable to 2015, was as follows: (Amounts in 000's) Actuarial Accrued Liability(AAL) $ 1,493 Actuarial Value of Plan Assets $ 1,217 Unfunded Actuarial Accrued Liability(Asset) (UAAL) $ 276 Funded Ratio (Actuarial Value of Plan Assets/AAL) 81.5% Covered Payroll (Active Plan Members) $ 4,950 UAAL as a Percentage of Covered Payroll 5.6% 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. On October 9, 2015, the City contributed $644,768 to CERBT to pay down the UAAL. - 60 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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, 2015 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, 2015, totaled $12,530,000. 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, 2015, totaled $13,242,831. - 61 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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 $920,000 at June 30, 2015. 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 $4,940,000 at June 30, 2015. - 62 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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 $13,650,000 at June 30, 2015. 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 118 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 lines of coverage. The Authority began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. B) Self-Insurance Programs of the Authority Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Retrospective adjustments are scheduled to continue indefinitely on coverage years 2012-13 and prior, until all claims incurred during those coverage years are closed, on a pool-wide basis. This subsequent cost re- allocation among members, based on actual claim development, can result in adjustments of either refunds or additional deposits required. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. - 63 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 11) RISK MANAGEMENT (continued) B) Self-Insurance Programs of the Authority (continued) The total funding requirement for self-insurance programs is estimated using actuarial models and pre- funded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk-sharing pool. Additional information regarding the cost allocation methodology is provided below. Liability In the liability program claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. For 2014-15 the Authority's pooled retention is $2 million per occurrence, with reinsurance to $20 million, and excess insurance to $50 million. The Authority's reinsurance contracts are subject to the following additional pooled retentions: (a) 50% of the $2.5 million annual aggregate deductible in the $3 million xis $2 million layer, (b) 50% quota share of the $3 million xis $2 million layer, and (c) $3 million annual aggregate deductible in the $5 million xis $10 million layer. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Costs of covered claims for subsidence losses have a sub-limit of $30 million per occurrence. Workers' Compensation In the workers' compensation program claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. For 2014-15 the Authority's pooled retention is $2 million per occurrence, with reinsurance to statutory limits under California Workers' Compensation Law. Employer's Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer's Liability losses from $5 million to $10 million are pooled among members. - 64 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 11) RISK MANAGEMENT (continued) C) Purchased Insurance Pollution Legal Liability Insurance The City participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $50,000 deductible. The Authority has a limit of $50 million for the 3-year period from July 1, 2014 through July 1, 2017. Each member of the Authority has a $10 million sub-limit during the 3-year term of the policy. Property Insurance The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City property is currently insured according to a schedule of covered property submitted by the City to the Authority. City property currently has all-risk property insurance protection in the amount of$49,834,749. There is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retrospective adjustments. Crime Insurance The City purchases crime insurance coverage in the amount of$1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retrospective adjustments. D) Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2014-15. - 65 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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 In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, the 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 City's governmental fund balances at June 30, 2015, are presented below: Street and Assessment Parks/Public General Traffic Safety Districts Facilities Nonspendable: Prepaid items $ 48,933 $ 10,156 $ - $ - Due from other funds and governments 10,252 - - - Property held for resale 600,892 - - - Restricted for: Public services - 21,631,221 5,095,593 - Recreation services - - - 4,325,509 Public safety - - - - Low and moderate income housing - - - - Committed to: Library services - - - - Assigned to: Community/Engineering/Public Works - - - - Capital projects - - - - Unassigned 2,999,941 - - - Total fund balances(deficit) $ 3,660,018 $ 21,641,377 $ 5,095,593 $ 4,325,509 (Continued on next page) - 66 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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 11,661,571 - 23,438 - Recreation services - - - - Public safety - - - - Low and moderate income housing - 214,116 - - Committed to: Library services - - - - Assigned to: Community/Engineering/Public Works - - - - Capital projects - - - - Unassigned - - - - Total fund balances(deficit) $ 11,838,577 $ 7,643,680 $ 23,438 $ - (Continued on next page) - 67 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 12) CLASSIFICATION OF NET POSITION AND FUND BALANCE, (continued) B) Fund Balance, (continued) Nonmajor Total Police Special Governmental Governmental Endowment Facilities Fee Projects Funds Funds Nonspendable: Prepaid items $ - $ - $ - $ - $ 59,089 Due from other funds and governments 1,771,143 - 919,874 - 2,878,275 Property held for resale - - - 55,573 8,086,029 Restricted for: Public services - - - 3,754,009 42,165,832 Recreation services - - - 3,298,759 7,624,268 Public safety - - - 257,276 257,276 Low and moderate income housing - - - 4,311,283 4,525,399 Committed to: Library services - - - 711,399 711,399 Assigned to: Community/Engineering/Public Works - - - - - Capital projects 11,782,961 - 23,719,941 6,718,663 42,221,565 Unassigned - (1,427,564) - (177,006) 1,395,371 Total fund balances(deficit) $ 13,554,104 $ (1,427,564) $ 24,639,815 $ 18,929,956 $ 109,924,503 Deficit Fund Balances The following major governmental fund has a deficit at June 30, 2015: Police Facilities Fees Capital Projects Fund $ (1,427,564) The following non-major governmental fund has a deficit at June 30, 2015: Tierra Rejada/Spring Road A.O.C. Special Revenue Fund $ (177,006) Management expects these deficits to be eliminated through future revenues. - 68 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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 $5,572,138. 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 SARA for the year ended June 30, 2015 (and subsequent years in which the Agency is in operation) are subject to review by various State agencies and the County in which the Agency resides. If any expenses incurred by the Agency are disallowed by the State agencies or County, the City, acting as the 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 Agency expects such amounts, if any, to be immaterial. On February 12, 2015, the State of California Department of Finance approved the Agency's Long Range Property/Management Plan. - 69 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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 SARA 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. The private-purpose trust fund keeps its activities under the accrual method of accounting. In accordance with AB 1484 and in compliance with the California Health & Safety Code, the City elected to be Housing Successor to the housing activities and functions of the former Agency. Accordingly, all housing assets, as defined by the Health and Safety Code Section 34176 (e), were transferred to the City in a specially created fund shown as a major fund in 2015, named "Low-Mod Housing Asset Fund" in the governmental funds financial statements. - 70 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK (SARA), (continued) LONG TERM DEBT The following is a schedule of changes in long-term liabilities for the year ended June 30, 2015: Beginning Ending Due within Balance Increases Decreases Balance one year Bonds payable: 1999 Tax allocation bonds $ 3,340,000 $ - $ (3,340,000) $ - $ 2001 Tax allocation bonds 11,455,000 - (11,455,000) - 2006 Tax allocation bonds 11,540,000 - (40,000) 11,500,000 45,000 2014 Tax allocation refunding bonds - 13,420,000 - 13,420,000 720,000 Subtotal bonds payable 26,335,000 13,420,000 (14,835,000) 24,920,000 765,000 Plus/(less)deferred amounts: 2006 Bonds discount (244,049) - 10,846 (233,203) 2014 Bonds premium - 514,583 (14,702) 499,881 Successor agency long-term liabilities $ 26,090,951 $ 13,934,583 $ (14,838,856) $ 25,186,678 $ 765,000 Combined annual debt service requirements to maturity for all bonds are as follows: Year Ending Principal Interest Total 2016 $ 765,000 $ 941,101 $ 1,706,101 2017 775,000 924,969 1,699,969 2018 795,000 904,704 1,699,704 2019 820,000 880,004 1,700,004 2020 695,000 853,554 1,548,554 2021-2025 3,885,000 3,850,013 7,735,013 2026-2030 4,655,000 3,040,769 7,695,769 2031-2035 6,185,000 2,092,730 8,277,730 2036-2039 6,345,000 570,172 6,915,172 Total $ 24,920,000 $ 14,058,016 $ 38,978,016 - 71 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 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 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 1999 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 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 SARA on February 1, 2012 as part of the former Agency's dissolution in accordance with ABX1 26 and AB 1484. SARA is in compliance with the covenants contained in debt indenture, which require the establishment of certain specific accounts for the 1999 Bonds. In the current year the 1999 Bonds were refunded with the issuance of the 2014 Tax Allocation Refunding Bonds (2014 Bonds). B) 2001 Tax Allocation Bonds In December 2001, the Agency issued $11,625,000 of Tax Allocation Parity Bonds (2001 Bonds). The proceeds of the 2001 Bonds 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. The 2001 Bonds were secured by all property tax increment revenue, which were deposited in the 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 SARA on February 1, 2012 as part of the former Agency's dissolution in accordance with AB X1 26 and AB 1484. SARA is in compliance with the covenants contained in debt indentures, which require the establishment of certain specific accounts for the 2001 Bonds. In the current year the 2001 Tax Allocation Bonds were refunded with the issuance of the 2014 Bonds. C) 2006 Tax Allocation Bonds In 2006, the Agency issued an $11,695,000 aggregated principal amount of Moorpark Redevelopment Project 2006 Tax Allocation Bonds (2006 Bonds). The purpose of the 2006 Bonds was to finance redevelopment activities related to the Moorpark Redevelopment Project Area. The 2006 Bonds bear interest at rates ranging from 3.625 percent to 4.375 percent per annum, payable semi-annually on April 1 and October 1 of each year, commencing on April 1, 2007, and are subject to mandatory sinking fund redemption commencing on October 1, 2016, and on each October 1 thereafter. - 72 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK (SARA), (continued) LONG TERM DEBT, (continued) C) 2006 Tax Allocation Bonds (Continued) 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 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 SARA on February 1, 2012 as part of the former Agency's dissolution in accordance with AB X1 26 and AB 1484. SARA is in compliance with the covenants contained in the debt indenture, which require the establishment of certain specific accounts for the 2006 Bonds. D) 2014 Tax Allocation Bonds In November 2014, SARA issued a $13,420,000 aggregated principal amount of Moorpark Redevelopment Project 2014 Bonds. The purpose of the 2014 Bonds was to refund the 1999 Bonds and the 2001 Bonds, previously issued by the former Agency. The 2014 Bonds bear interest at rates ranging from 2.000% to 3.375% per annum, semi-annually on each April 1 and October 1 of each year, commencing on April 1, 2015. The 2014 Bonds are payable from and secured by, the tax revenues to be derived from taxes deposited into the Successor Agency's Redevelopment Obligation Retirement Fund established pursuant to Health and Safety Code section 34170.5(a). SARA is in compliance with the covenants contained in the debt indenture, which require the establishment of certain specific accounts for the 2014 Bonds. The aggregate difference in debt service between the refunding debt and the refunded debt is as follows: Total cash flow requirement to service the old debt $ 21,314,535 Total cash flow requirement to service the new debt 17,768,443 Total cash flow difference $ 3,546,092 The economic gain calculation on the transaction is as follows: Present value of total cash flow requirement to service the old debt discounted at the effective interest rate of 3.0370324% $ 16,636,405 Present value of total cash flow requirement to service the new debt discounted at the effective interest rate of 3.0370324% 13,866,099 Economic Gain (in present value dollars at date of refunding 11/18/2014) $ 2,770,306 - 73 - City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2015 15) EMPLOYEES RETIREMENT PLAN PARS Alternate Retirement System (ARS) (Plan) The City currently offers an alternative plan for employees classified as part-time, seasonal or temporary (PST). The plan is administered by the Public Agency Retirement Services (PARS) and is a deferred compensation plan created in accordance with Internal Revenue Code Section IRC 457. Pursuant to the IRC 457 subsection (g): all amounts of compensation deferred under the plan, all property, or rights are solely the property and rights of the employee and beneficiaries of the plan. Deferred compensation funds are not subject to claims of the City's general creditor; consequently the assets and related liabilities of the plan are not included within the City's financial statements. The City contributes 3.75% percent of the employee's compensation. In addition, each participant is required to contribute 3.75% of their salary. During the current fiscal year, the City contributed $8,673 to the plan. 16) RESTATEMENT OF NET POSITION Change in Accounting Principle As discussed in Note 1, the City implemented GASB Statement No. 68 effective July 1, 2014. GASB 68, among other provisions, amended prior guidance with respect to the reporting of pensions. GASB 68, establishes standards for measuring and recognizing liabilities, deferred outflows of resources, and deferred inflows of resources, and expense/expenditures. For defined benefit pensions, the City's net pension liability was not previously recorded on the statement of net position. GASB 68 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 Activities has been restated for changes related to GASB 68 as follows: Government-Wide Statements Statement of Activities-Governmental Activities Net position, beginning of year, prior to restatement $ 361,327,598 Restatement due to change in accounting principle (5,176,390) Net position, beginning of year,as restated $ 356,151,208 - 74 - F 474 • :A014 ec /411 c, Irfi dirE a REQUIRED SUPPLEMENTARY INFORMATION City of Moorpark Required Supplementary Information Budgetary Comparison Schedule - General Fund Year Ended June 30, 2015 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Property Taxes Current Secured $ 3,100,000 $ 3,100,000 $ 3,224,533 $ 124,533 Current Unsecured 115,000 115,000 98,963 (16,037) Prior year Secured-Unsecured 10,000 10,000 4,421 (5,579) Supplemental Secured-Unsecured 35,000 35,000 79,649 44,649 Real Property Transfer Tax 175,000 175,000 258,446 83,446 Homeowners Property Exemption 40,000 40,000 35,514 (4,486) Parcel Tax 220,000 220,000 272,101 52,101 Property Taxes-VLF 3,000,000 3,084,000 3,084,148 148 Other Property Taxes 125,000 125,000 297,794 172,794 Total Property Taxes 6,820,000 6,904,000 7,355,569 451,569 Sales Taxes Sales and use tax 2,800,000 2,800,000 2,749,320 (50,680) Sales tax compensation 900,000 1,357,000 896,527 (460,473) Total Sales Taxes 3,700,000 4,157,000 3,645,847 (511,153) Franchise Fees Cable TV 425,000 425,000 435,493 10,493 Edison 300,000 300,000 313,086 13,086 Gas 90,000 90,000 96,257 6,257 Oil - - 4,197 4,197 PEG Fees 50,000 50,000 54,827 4,827 GI Rubbish 200,000 200,000 194,968 (5,032) Moorpark Rubbish 120,000 120,000 128,260 8,260 Landfill local impact fee 55,000 55,000 48,261 (6,739) CIWMP Fees 10,000 10,000 8,919 (1,081) Total Franchise Fees 1,250,000 1,250,000 1,284,268 34,268 Licenses and Permits Bicycle Permits - - 2 2 Business Registration 125,000 125,000 125,156 156 Filming Permits 10,000 10,000 8,600 (1,400) NPDES Business Inspection Fees 8,000 8,000 9,576 1,576 Total Licenses and Permits 143,000 143,000 143,334 334 (Continued on next page) - 75 - City of Moorpark Required Supplementary Information Budgetary Comparison Schedule - General Fund (continued) Year Ended June 30, 2015 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Fines and Forfeitures Municipal Codes Fines 250,000 250,000 206,635 (43,365) Animal Control Fines 1,000 1,000 1,515 515 Forfeitures and Penalties 1,000 1,000 - (1,000) Total Fines and Forfeitures 252,000 252,000 208,150 (43,850) Use of Money and Property Investment Earnings 425,000 425,000 252,423 (172,577) Rents and Concessions 125,000 125,000 122,970 (2,030) Rents Tenants 142,600 142,600 142,604 4 Other earnings and rents 6,000 6,000 7,455 1,455 Total Use of Money and Property 698,600 698,600 525,452 (173,148) Charges for Services Other Administrative Services 100,000 100,000 158,779 58,779 Administrative Fees 250,000 250,000 250,000 - Administrative Fees-CFD - - 51,000 51,000 Park and Facility Use Fee 103,100 103,100 151,967 48,867 Contract Class Registration Fees 238,000 238,000 225,470 (12,530) League Fees 144,960 144,960 101,014 (43,946) Recreation Events Fees 313,970 313,970 248,854 (65,116) Other Recreation Fees 5,000 5,000 12,044 7,044 Advertising in Brochure 12,000 12,000 12,070 70 Other Community Services Fees 158,000 21,300 3,038 (18,262) Photocopying 1,000 1,000 375 (625) Sale of Documents 1,000 1,000 47 (953) Special Police Department Services 40,000 40,000 45,620 5,620 NSF Fees and Charges 1,500 1,500 645 (855) Planning Time Charges 20,000 20,000 15,441 (4,559) Total Charges for Services 1,388,530 1,251,830 1,276,364 24,534 Intergovernmental Motor Vehicle in Lieu 16,000 16,000 15,399 (601) Other State Funds 20,000 20,000 166,619 146,619 County Grants 40,000 52,131 31,813 (20,318) Other Federal Revenue Grants 15,000 15,000 15,584 584 Total Intergovernmental 91,000 103,131 229,415 126,284 (Continued on next page) - 76 - City of Moorpark Required Supplementary Information Budgetary Comparison Schedule - General Fund (continued) Year Ended June 30, 2015 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Other Revenues Contributions-Donations 10,000 11,500 21,925 10,425 Revenues not classified elsewhere 10,000 10,000 9,240 (760) Expense Reimursements 243,900 243,900 240,594 (3,306) Restitutions-Insurance Proceeds 20,000 20,000 22,015 2,015 Total Other Revenues 283,900 285,400 293,774 8,374 Total revenues 14,627,030 15,044,961 14,962,173 (82,788) EXPENDITURES General government 3,463,347 4,745,425 2,495,675 2,249,750 Public safety 6,843,372 6,843,372 6,410,918 432,454 Public services 2,151,156 2,761,219 2,320,888 440,331 Parks and recreation 1,725,853 2,144,131 1,822,537 321,594 Capital Outlay 619,525 1,205,093 370,007 835,086 Total expenditures 14,803,253 17,699,240 13,420,025 4,279,215 Excess of revenues over expenditures (176,223) (2,654,279) 1,542,148 4,196,427 OTHER FINANCING SOURCES (USES) Transfers in - 2,892,546 2,892,546 - Transfers out (2,503,354) (3,226,175) (4,410,575) (1,184,400) Total other financing (uses) (2,503,354) (333,629) (1,518,029) (1,184,400) Net change in fund balance (2,679,577) (2,987,908) 24,119 3,012,027 Fund balance, beginning of year 3,635,899 3,635,899 3,635,899 - Fund balance, end of year $ 956,322 $ 647,991 $ 3,660,018 $ 3,012,027 - 77 - City of Moorpark Required Supplementary Information Budgetary Comparison Schedule - Street and Traffic Safety-Special Revenue Fund Year Ended June 30, 2015 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property Investment Earnings $ 243,800 $ 243,800 $ 242,935 $ (865) Rents Tenants - - 19,800 19,800 Total Use of Money and Property 243,800 243,800 262,735 18,935 Charges for Services Other Development Fees 1,568,000 1,568,000 2,921,706 1,353,706 Total Charges for Services 1,568,000 1,568,000 2,921,706 1,353,706 Other revenue - - 730 730 Total revenues 1,811,800 1,811,800 3,185,171 1,373,371 EXPENDITURES Public services 411,440 507,126 419,409 87,717 Capital Outlay 3,018,047 3,718,834 850,679 2,868,155 Total expenditures 3,429,487 4,225,960 1,270,088 2,955,872 Net change in fund balance (1,617,687) (2,414,160) 1,915,083 4,329,243 Fund balance, beginning of year 19,726,294 19,726,294 19,726,294 - Fund balance, end of year $ 18,108,607 $ 17,312,134 $ 21,641,377 $ 4,329,243 - 78 - City of Moorpark Required Supplementary Information Budgetary Comparison Schedule -Assessments Districts - Special Revenue Fund Year Ended June 30, 2015 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property $ 72,700 $ 72,700 $ 58,864 $ (13,836) Charges for Services 8,100 8,100 168,801 160,701 Maintenance Assessments 1,965,237 1,965,237 2,487,047 521,810 Other Revenues 5,000 5,000 24,812 19,812 Total revenues 2,051,037 2,051,037 2,739,524 688,487 EXPENDITURES Public Services 411,497 414,542 391,793 22,749 Parks and Recreation 4,863,766 5,396,660 3,897,395 1,499,265 Capital Outlay 11,000 26,675 20,813 5,862 Total expenditures 5,286,263 5,837,877 4,310,001 1,527,876 Excess (deficiency)of revenues over(under)expenditures (3,235,226) (3,786,840) (1,570,477) 2,216,363 OTHER FINANCING SOURCES (USES) Transfers in 1,745,748 1,929,348 1,502,264 (427,084) Total other financing sources 1,745,748 1,929,348 1,502,264 (427,084) Net change in fund balance (1,489,478) (1,857,492) (68,213) 1,789,279 Fund balance, beginning of year 5,163,806 5,163,806 5,163,806 - Fund balance, end of year $ 3,674,328 $ 3,306,314 $ 5,095,593 $ 1,789,279 - 79 - City of Moorpark Required Supplementary Information Budgetary Comparison Schedule— Parks/Public Facilities -Special Revenue Fund Year Ended June 30, 2015 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property $ 24,100 $ 24,100 $ 55,038 $ 30,938 Charges for Services 1,236,100 1,236,100 2,314,795 1,078,695 Total revenues 1,260,200 1,260,200 2,369,833 1,109,633 EXPENDITURES Public services - - 4,138 (4,138) Parks and Recreation 70,100 67,100 - 67,100 Capital Outlay 336,800 376,547 255,665 120,882 Total expenditures 406,900 443,647 259,803 183,844 Net change in fund balance 853,300 816,553 2,110,030 1,293,477 Fund balance, beginning of year 2,215,479 2,215,479 2,215,479 - Fund balance, end of year $ 3,068,779 $ 3,032,032 $ 4,325,509 $ 1,293,477 - 80 - City of Moorpark Required Supplementary Information Budgetary Comparison Schedule - Los Angeles Area of Contribution - Special Revenue Fund Year Ended June 30, 2015 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property Investment Earnings $ 175,000 $ 175,000 $ 162,759 $ (12,241) Total Use of Money and Property 175,000 175,000 162,759 (12,241) Charges for Services Area of Contribution Fee 702,000 702,000 1,314,415 612,415 Total Charges for Services 702,000 702,000 1,314,415 612,415 Total revenues 877,000 877,000 1,477,174 600,174 EXPENDITURES Public services 18,177 44,721 32,708 12,013 Capital Outlay 3,717,476 6,782,500 1,370,881 5,411,619 Total expenditures 3,735,653 6,827,221 1,403,589 5,423,632 Net change in fund balance (2,858,653) (5,950,221) 73,585 6,023,806 Fund balance, beginning of year 11,764,992 11,764,992 11,764,992 - Fund balance, end of year $ 8,906,339 $ 5,814,771 $ 11,838,577 $ 6,023,806 - 81 - City of Moorpark Required Supplementary Information Budgetary Comparison Schedule— Low-Mod Income Housing Asset Fund -Special Revenue Fund Year Ended June 30, 2015 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property $ 3,000 $ 3,000 $ 2,677 $ (323) Charges for Services 19,800 19,800 19,800 - Total revenues 22,800 22,800 22,477 (323) EXPENDITURES General Government 115 115 100 15 Public services 49,510 59,660 26,065 33,595 Debt Service: Interest 3,000 3,000 4,476 (1,476) Total expenditures 52,625 62,775 30,641 32,134 Net change in fund balance (29,825) (39,975) (8,164) 31,811 Fund balance, beginning of year 7,651,844 7,651,844 7,651,844 - Fund balance, end of year $ 7,622,019 $ 7,611,869 $ 7,643,680 $ 31,811 - 82 - City of Moorpark Required Supplementary Information Budgetary Comparison Schedule - Prop 1B Local Streets and Roads - Special Revenue Fund Year Ended June 30, 2015 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ - $ - $ 13,746 $ 13,746 Total revenues - - 13,746 13,746 EXPENDITURES Capital outlay 1,091,037 1,091,959 - 1,091,959 Total expenditures 1,091,037 1,091,959 - 1,091,959 Net change in fund balance (1,091,037) (1,091,959) 13,746 1,105,705 Fund balance, beginning of year 9,692 9,692 9,692 - Fund balance, end of year $ (1,081,345) $ (1,082,267) $ 23,438 $ 1,105,705 - 83 - City of Moorpark Required Supplementary Information Budgetary Comparison Schedule -Community Development -Special Revenue Fund Year Ended June 30, 2015 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Licenses and permits $ 584,900 $ 584,900 $ 1,106,630 $ 521,730 Fines and forfeitures - - 5,950 5,950 Charges for services 833,700 833,700 1,104,622 270,922 Other revenue - - 71,950 71,950 Total revenues 1,418,600 1,418,600 2,289,152 870,552 EXPENDITURES Public services 2,339,068 2,840,798 3,238,766 (397,968) Total expenditures 2,339,068 2,840,798 3,238,766 (397,968) Excess (deficiency)of revenues over(under)expenditures (920,468) (1,422,198) (949,614) 472,584 OTHER FINANCING SOURCES(USES) Transfers in 857,606 1,359,336 949,597 (409,739) Total other financing sources 857,606 1,359,336 949,597 (409,739) Net change in fund balance (62,862) (62,862) (17) 62,845 Fund balance, beginning of year 17 17 17 - Fund balance, end of year $ (62,845) $ (62,845) $ - $ 62,845 - 84 - City of Moorpark Required Supplementary Information Budgetary Comparison Schedule - Endowment- Special Revenue Fund Year Ended June 30, 2015 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 122,000 $ 122,000 $ 187,704 $ 65,704 Charges for services 1,587,000 1,587,000 4,897,921 3,310,921 Intergovernmental - 662,314 2,142,717 1,480,403 Other revenue - - 29 29 Total revenues 1,709,000 2,371,314 7,228,371 4,857,057 EXPENDITURES Public services 121,047 362,056 182,040 180,016 Capital outlay 285,173 1,038,375 648,412 389,963 Total expenditures 406,220 1,400,431 830,452 569,979 Net change in fund balance 1,302,780 970,883 6,397,919 5,427,036 Fund balance, beginning of year 7,156,185 7,156,185 7,156,185 - Fund balance, end of year $ 8,458,965 $ 8,127,068 $ 13,554,104 $ 5,427,036 - 85 - City of Moorpark Required Supplementary Information Other Post-Employment Benefits - Schedule of Funding Progress Year Ended June 30, 2015 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) 6/30/2010 $ 487 $ 590 $ 103 82.5% $ 5,066 2.0% 6/30/2013 877 863 (14) 101.6% 4,890 -0.3% 6/30/2015 1,217 1,493 276 81.5% 4,950 5.6% GASB 45 was implemented prospectively in fiscal year 2009. There were no previous actuarial valuations. - 86 - City of Moorpark Required Supplementary Information Schedule of the City's Proportionate Share of the Plan's Net Pension Liability and Related Ratios as of the Measurement Date - Last 10 Years* Year Ended June 30, 2015 Miscellaneous Measurement Date 6/30/2014 Plan's Proportion of the Net Pension Liability4 0.07120% Plan's Proportionate Share of the Net Pension Liability $ 4,430,102 Plan's Covered-Employee Payroll $ 5,084,665 Plan's Proportionate Share of the Net Pension Liability as a percentage of its Covered-Employee Payroll 87.13% Plan's Proportion of the Fiduciary Net Position2 0.002% Plan's Share of Risk Pool Fiduciary Net Position2 $ 21,673,462 Plan's Additional Payments to Side Fund During Measurement Period $ - Plan's Proportionate Share of the Fiduciary Net Position (sum of the two preceding lines) $ 21,673,462 Plan's Proportionate Share of the Fiduciary Net Position as a percentage of the Plan's Total Pension Liability 83.03% Plan's Proportionate Share of Aggregate Employer Contributions3 $ 586,086 Covered-Employee Payroll represented above is based on the total payroll of employees that are provided pensions through the pension plan in accordance with GASB 68. 2The term Fiduciary Net Position (FNP) as used in this line denotes the aggregate risk pool's FNP at June 30, 2014 less the sum of all employers' additional side fund contributions made during the measurement period. 3The plan's proportionate share of aggregate contributions may not match the actual contributions made by the employer during the Measurement Period. The plan's proportionate share of aggregate contributions is based on the plan's proportion of Fiduciary Net Position shown on line 5 of the table above as well as any additional side fund (or unfunded liability) contributions made by the employer during the measurement period. 4Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool. *Measurement period 2013-14 (fiscal year 2015)was the 1st year of implementation, therefore, only one year is shown. - 87 - City of Moorpark Required Supplementary Information Schedule of Plan's Contributions - Last 10 Years* Year Ended June 30, 2015 Miscellaneous Mesurement Period Fiscal Year 2013-14 Actuarially Determined Contribution $ 536,085 Contributions in Relation to the Actuarially Determined Contribution (536,085) Contribution Deficiency(Excess) $ - Covered-Employee Payroll' $ 5,084,665 Contributions as a Percentage of Covered-Employee Payroll 10.54% 'Covered-Employee Payroll represented above is based on the total payroll of employees that are provided pensions through the pension plan in accordance with GASB 68. * Measurement period 2013-14 (fiscal year 2015)was the 1st year of implementation, therefore, only one year is shown. Notes to Schedule: Change in Benefit Terms: None Change in Assumptions: None - 88 - City of Moorpark Notes to the Required Supplementary Information Year Ended June 30, 2015 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 $32,773,003. This increase resulted primarily from additional appropriations to various construction in progress projects, acquisition of property, prepayments of certain liabilities, bond refunding and re-budgeted projects and amounts carried over from Fiscal Year 2013/14 as continuing appropriations. The Community Development Fund presents total budgeted expenditures of $2,840,798, total actual expenditures of$3,238,766, and total excess of expenditures over budgeted amounts of$(397,968). In the current year the City did not budget for its Special Projects— Major Capital Projects fund. -89- 42 c01111111, irgwrmsk�2 1OW#7 it,47. 7z.. .ill, .ffol .a4t,2 \\ock.Veri- irm \ '4.q 7,E 0 ..0-)N"1 '''''. _ SUPPLEMENTARY VN- SUPPLEMENTARY INFORMATION This page intentionally left blank. 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, 2015 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property Investment Earnings $ - $ 700 $ 689 $ (11) Total Use of Money and Property - 700 689 (11) Charges for Services Police Facilities Fee 153,000 153,000 219,928 66,928 Total Maintenance Assesment 153,000 153,000 219,928 66,928 Total revenues 153,000 153,700 220,617 66,917 EXPENDITURES Total expenditures - - - - Net change in fund balance 153,000 153,700 220,617 66,917 Fund balance (deficit), beginning of year (1,648,181) (1,648,181) (1,648,181) - Fund balance (deficit), end of year $ (1,495,181) $ (1,494,481) $ (1,427,564) $ 66,917 - 90 - City of Moorpark Non-Major Governmental Funds June 30, 2015 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. 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. The City does not present a Budget to Actual schedule for this fund. Casey/Gabbert Road A.O.0 Fund - is used to account for the financial resources for capital projects related to streets and other improvements within the Casey & Gabbert project area. Sources of revenue are development fees. 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. - 91 - City of Moorpark Non-Major Governmental Funds (continued) June 30, 2015 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. 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. - 92 - City of Moorpark Combining Balance Sheet Non-Major Governmental Funds June 30, 2015 Special Revenue City Library Traffic Affordable Services Safety Housing ASSETS Cash and investments $ 722,344 $ 246,191 $ 4,333,366 Receivables: Accounts 428 24,455 12,297 Notes and loans - - 126,869 Property held for resale - - 55,573 Total assets $ 722,772 $ 270,646 $ 4,528,105 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 11,367 $ 13,370 $ 27,099 Due to other funds - - - Unearned revenues - - - Total liabilities 11,367 13,370 27,099 Deferred inflows of resources: Unavailable revenues 6 - 7,281 Deferred loans - - 126,869 Total deferred inflows of resources 6 - 134,150 Fund balances: Nonspendable - - 55,573 Restricted - 257,276 4,311,283 Committed 711,399 - - Assigned - - - Unassigned - - - Total fund balances (deficit) 711,399 257,276 4,366,856 Total liabilities, deferred inflows of resources and fund balances $ 722,772 $ 270,646 $ 4,528,105 -93- Continued Special Revenue Tierra Rejada/ Freemount Spring Road Casey/Gabbert Storm Drain A.O.C. A.O.C. A.O.C. $ - $ 94,823 $ 15,876 - 111 19 $ - $ 94,934 $ 15,895 $ - $ - $ - 177,006 - - 177,006 - - - 94,934 15,895 (177,006) - - (177,006) 94,934 15,895 $ - $ 94,934 $ 15,895 -94- City of Moorpark Combining Balance Sheet Non-Major Governmental Funds June 30, 2015 Special Revenue Art State and State Gas in Public Federal Tax Places Assistance ASSETS Cash and investments $ 1,115,534 $ 3,295,925 $ 895,687 Receivables: Accounts 188,482 3,484 343,998 Notes and loans - - - Property held for resale - - - Total assets $ 1,304,016 $ 3,299,409 $ 1,239,685 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 9,058 $ 650 $ 53,220 Due to other funds - - - Unearned revenues 6,384 - 695 Total liabilities 15,442 650 53,915 Deferred inflows of resources: Unavailable revenues - - - Deferred loans - - - Total deferred inflows of resources - - - Fund balances: Nonspendable - - - Restricted 1,288,574 3,298,759 1,185,770 Committed - - - Assigned - - - Unassigned - - - Total fund balances (deficit) 1,288,574 3,298,759 1,185,770 Total liabilities, deferred inflows of resources and fund balances $ 1,304,016 $ 3,299,409 $ 1,239,685 -95- Continued Special Revenue Total Local Transportation Solid Special Transit Waste Revenue $ - $ 1,008,470 $ 11,728,216 286,820 26,548 886,642 - - 126,869 - - 55,573 $ 286,820 $ 1,035,018 $ 12,797,300 $ 60,021 $ 24,001 $ 198,786 10,252 - 187,258 - - 7,079 70,273 24,001 393,123 58,728 - 66,015 - - 126,869 58,728 - 192,884 - - 55,573 157,819 1,011,017 11,621,327 - - 711,399 - - (177,006) 157,819 1,011,017 12,211,293 $ 286,820 $ 1,035,018 $ 12,797,300 -96- City of Moorpark Combining Balance Sheet Non-Major Governmental Funds June 30, 2015 Capital Projects Capital City Hall Projects Building ASSETS Cash and investments $ 378,076 $ 3,675,686 Receivables: Accounts 215 4,327 Notes and loans - - Property held for resale - - Total assets $ 378,291 $ 3,680,013 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ 17,783 Due to other funds - - Unearned revenues - - Total liabilities - 17,783 Deferred inflows of resources: Unavailable revenues - - Deferred loans - - Total deferred inflows of resources - - Fund balances: Nonspendable - - Restricted -Committed - - Assigned 378,291 3,662,230 Unassigned - - Total fund balances (deficit) 378,291 3,662,230 Total liabilities, deferred inflows of resources and fund balances $ 378,291 $ 3,680,013 -97- Continued Capital Projects Total Total Capital NonMajor Equipment Projects Governmental Replacement Funds Funds $ 2,803,445 $ 6,857,207 $ 18,585,423 3,233 7,775 894,417 126,869 55,573 $ 2,806,678 $ 6,864,982 $ 19,662,282 $ 128,536 $ 146,319 $ 345,105 187,258 7,079 128,536 146,319 539,442 66,015 126,869 192,884 55,573 11,621,327 711,399 2,678,142 6,718,663 6,718,663 (177,006) 2,678,142 6,718,663 18,929,956 $ 2,806,678 $ 6,864,982 $ 19,662,282 -98- City of Moorpark Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Non-Major Governmental Funds Year Ended June 30, 2015 Special Revenue City Library Traffic Affordable Services Safety Housing REVENUES Taxes $ 833,531 $ - $ - Fines and forfeitures 20,273 149,915 Use of money and property 5,369 2,645 50,011 Charges for services 22,363 - 453,010 Intergovernmental - - Other revenue - - 38,353 Total revenues 881,536 152,560 541,374 EXPENDITURES Current: Public safety - 274,514 - Public services 868,532 - 380,402 Parks and recreation - - - Capital Outlay - - - Total expenditures 868,532 274,514 380,402 Excess (deficiency) of revenues over(under) expenditures 13,004 (121,954) 160,972 OTHER FINANCING SOURCES (USES) Transfers out - - - Total other financing sources (uses) - - - Net change in fund balances 13,004 (121,954) 160,972 Fund balances (deficit), beginning of year 698,395 379,230 4,205,884 Fund balances (deficit), end of year $ 711,399 $ 257,276 $ 4,366,856 -99- Continued Special Revenue Tierra Rejada/ Freemount Spring Road Casey/Gabbert Storm Drain A.O.C. A.O.C. A.O.C. $ - $ - $ - - 1,085 181 - 2,030 - - 3,115 181 - 3,115 181 - 3,115 181 (177,006) 91,819 15,714 $ (177,006) $ 94,934 $ 15,895 -100- City of Moorpark Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Non-Major Governmental Funds Year Ended June 30, 2015 Special Revenue Art State and State in Public Federal Gas Tax Places Assistance REVENUES Taxes $ - $ - $ - Fines and forfeitures - - Use of money and property 13,338 35,223 13,159 Charges for services - 784,386 Intergovernmental 1,051,281 - 1,167,587 Other revenue 7,430 - 8,119 Total revenues 1,072,049 819,609 1,188,865 EXPENDITURES Current: Public safety - - 104,333 Public services 792,384 - 782,502 Parks and recreation - 12,382 - Capital Outlay 831 125,743 92,366 Total expenditures 793,215 138,125 979,201 Excess (deficiency) of revenues over(under) expenditures 278,834 681,484 209,664 OTHER FINANCING SOURCES (USES) Transfers out (62,508) - - Total other financing sources (uses) (62,508) - - Net change in fund balances 216,326 681,484 209,664 Fund balances (deficit), beginning of year 1,072,248 2,617,275 976,106 Fund balances (deficit), end of year $ 1,288,574 $ 3,298,759 $ 1,185,770 -101- Continued Special Revenue Total Local Special Transportation Solid Revenue Transit Waste Funds $ - $ 286,373 $ 1,119,904 - - 170,188 828 11,896 133,735 69,414 4,320 1,335,523 633,864 19,440 2,872,172 - - 53,902 704,106 322,029 5,685,424 - - 378,847 683,440 345,160 3,852,420 - - 12,382 - - 218,940 683,440 345,160 4,462,589 20,666 (23,131) 1,222,835 - - (62,508) - - (62,508) 20,666 (23,131) 1,160,327 137,153 1,034,148 11,050,966 $ 157,819 $ 1,011,017 $ 12,211,293 -102- City of Moorpark Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Non-Major Governmental Funds Year Ended June 30, 2015 Capital Projects Capital City Hall Projects Building REVENUES Taxes $ 282,731 $ - Fines and forfeitures -Use of money and property 1,855 41,816 Charges for services - - Intergovernmental - - Other revenue - - Total revenues 284,586 41,816 EXPENDITURES Current: Public safety - - Public services - - Parks and recreation - - Capital Outlay - 25,072 Total expenditures - 25,072 Excess (deficiency) of revenues over(under) expenditures 284,586 16,744 OTHER FINANCING SOURCES (USES) Transfers out - - Total other financing sources (uses) - - Net change in fund balances 284,586 16,744 Fund balances (deficit), beginning of year 93,705 3,645,486 Fund balances (deficit), end of year $ 378,291 $ 3,662,230 -103- Continued Capital Projects Total Total Capital Nonmajor Equipment Projects Governmental Replacement Funds Funds $ - $ 282,731 $ 1,402,635 - - 170,188 39,144 82,815 216,550 377,351 377,351 1,712,874 - - 2,872,172 - - 53,902 416,495 742,897 6,428,321 - - 378,847 - - 3,852,420 - - 12,382 132,401 157,473 376,413 132,401 157,473 4,620,062 284,094 585,424 1,808,259 - - (62,508) - - (62,508) 284,094 585,424 1,745,751 2,394,048 6,133,239 17,184,205 $ 2,678,142 $ 6,718,663 $ 18,929,956 -104- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Library Services -Special Revenue Fund Year Ended June 30, 2015 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Taxes $ 775,000 $ 775,000 $ 833,531 $ 58,531 Fines and forfeitures 25,000 25,000 20,273 (4,727) Use of money and property 3,000 3,000 5,369 2,369 Charges for services 21,000 21,000 22,363 1,363 Total revenues 824,000 824,000 881,536 57,536 EXPENDITURES Current: Public services 909,442 948,459 868,532 79,927 Total expenditures 909,442 948,459 868,532 79,927 Net change in fund balance (85,442) (124,459) 13,004 137,463 Fund balance, beginning of year 698,395 698,395 698,395 - Fund balance, end of year $ 612,953 $ 573,936 $ 711,399 $ 137,463 -105- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Traffic Safety- Special Revenue Fund Year Ended June 30, 2015 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Fines and forfeitures $ 155,000 $ 155,000 $ 149,915 $ (5,085) Use of money and property 7,000 7,000 2,645 (4,355) Total revenues 162,000 162,000 152,560 (9,440) EXPENDITURES Public safety 258,427 307,499 274,514 32,985 Total expenditures 258,427 307,499 274,514 32,985 Net change in fund balance (96,427) (145,499) (121,954) 23,545 Fund balance, beginning of year 379,230 379,230 379,230 - Fund balance, end of year $ 282,803 $ 233,731 $ 257,276 $ 23,545 -106- 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, 2015 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property $ 41,500 $ 41,500 $ 50,011 $ 8,511 Charges for Services 421,300 421,300 453,010 31,710 Other Revenues - - 38,353 38,353 Total revenues 462,800 462,800 541,374 78,574 EXPENDITURES Public services 234,252 337,066 380,402 (43,336) Capital Outlay 3,944 - - - Total expenditures 238,196 337,066 380,402 (43,336) Net change in fund balance 224,604 125,734 160,972 35,238 Fund balance, beginning of year 4,205,884 4,205,884 4,205,884 - Fund balance, end of year $ 4,430,488 $ 4,331,618 $ 4,366,856 $ 35,238 -107- 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, 2015 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 15,000 $ 15,000 $ 13,338 $ (1,662) Intergovernmental 946,400 946,400 1,051,281 104,881 Other revenue 2,000 2,000 7,430 5,430 Total revenues 963,400 963,400 1,072,049 108,649 EXPENDITURES Public services 800,545 934,696 792,384 142,312 Capital outlay 632,664 647,411 831 646,580 Total expenditures 1,433,209 1,582,107 793,215 788,892 Excess (deficiency)of revenues over(under)expenditures (469,809) (618,707) 278,834 897,541 OTHER FINANCING SOURCES(USES) Transfers out (100,000) (62,508) (62,508) - Total other financing uses (100,000) (62,508) (62,508) - Net change in fund balance (569,809) (681,215) 216,326 897,541 Fund balance, beginning of year 1,072,248 1,072,248 1,072,248 - Fund balance, end of year $ 502,439 $ 391,033 $ 1,288,574 $ 897,541 -108- 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, 2015 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 30,000 $ 30,000 $ 35,223 $ 5,223 Charges for services 514,000 514,000 784,386 270,386 Total revenues 544,000 544,000 819,609 275,609 EXPENDITURES Parks and recreation 7,089 10,307 12,382 (2,075) Capital outlay 269,800 278,499 125,743 152,756 Total expenditures 276,889 288,806 138,125 150,681 Net change in fund balance 267,111 255,194 681,484 426,290 Fund balance, beginning of year 2,617,275 2,617,275 2,617,275 - Fund balance, end of year $ 2,884,386 $ 2,872,469 $ 3,298,759 $ 426,290 -109- 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, 2015 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ - $ 3,000 $ 13,159 $ 10,159 Intergovernmental 4,086,751 4,226,456 1,167,587 (3,058,869) Other revenue - - 8,119 8,119 Total revenues 4,086,751 4,229,456 1,188,865 (3,040,591) EXPENDITURES Public safety 130,000 130,000 104,333 25,667 Public services 715,358 948,829 782,502 166,327 Capital outlay 3,376,830 3,634,906 92,366 3,542,540 Total expenditures 4,222,188 4,713,735 979,201 3,734,534 Net change in fund balance (135,437) (484,279) 209,664 693,943 Fund balance, beginning of year 976,106 976,106 976,106 - Fund balance, end of year $ 840,669 $ 491,827 $ 1,185,770 $ 693,943 -110- 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, 2015 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 1,000 1,000 $ 828 $ (172) Charges for services 65,000 65,000 69,414 4,414 Intergovernmental 1,016,477 1,066,477 633,864 (432,613) Total revenues 1,082,477 1,132,477 704,106 (428,371) EXPENDITURES Public services 1,096,471 1,233,542 683,440 550,102 Total expenditures 1,096,471 1,233,542 683,440 550,102 Net change in fund balance (13,994) (101,065) 20,666 121,731 Fund balance, beginning of year 137,153 137,153 137,153 - Fund balance, end of year $ 123,159 $ 36,088 $ 157,819 $ 121,731 -111- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Solid Waste -Special Revenue Fund Year Ended June 30, 2015 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Taxes $ 285,000 $ 285,000 $ 286,373 $ 1,373 Use of money and property - - 11,896 11,896 Charges for services 2,700 2,700 4,320 1,620 Intergovernmental 20,144 20,144 19,440 (704) Total revenues 307,844 307,844 322,029 14,185 EXPENDITURES Public services 317,234 373,642 345,160 28,482 Total expenditures 317,234 373,642 345,160 28,482 Net change in fund balance (9,390) (65,798) (23,131) 42,667 Fund balance, beginning of year 1,034,148 1,034,148 1,034,148 - Fund balance, end of year $ 1,024,758 $ 968,350 $1,011,017 $ 42,667 -112- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -City Hall Building—Capital Projects Fund Year Ended June 30, 2015 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 45,000 $ 45,000 $ 41,816 $ (3,184) Total revenues 45,000 45,000 41,816 (3,184) EXPENDITURES Capital outlay 3,443,674 3,414,788 25,072 3,389,716 Total expenditures 3,443,674 3,414,788 25,072 3,389,716 Net change in fund balance (3,398,674) (3,369,788) 16,744 3,386,532 Fund balance, beginning of year 3,645,486 3,645,486 3,645,486 - Fund balance, end of year $ 246,812 $ 275,698 $ 3,662,230 $ 3,386,532 -113- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Equipment Replacement—Capital Projects Fund Year Ended June 30, 2015 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 2,500 $ 2,500 $ 39,144 $ 36,644 Charges for services - - 377,351 377,351 Total revenues 2,500 2,500 416,495 413,995 EXPENDITURES Capital outlay 160,000 245,000 132,401 112,599 Total expenditures 160,000 245,000 132,401 112,599 Net change in fund balance (157,500) (242,500) 284,094 526,594 Fund balance, beginning of year 2,394,048 2,394,048 2,394,048 - Fund balance, end of year $ 2,236,548 $ 2,151,548 $ 2,678,142 $ 526,594 -114- City of Moorpark Statement of Changes in Fiduciary Asset and Liabilities -Agency Funds Year Ended June 30, 2015 Balance Balance June 30, 2014 Additions Deletions June 30, 2015 General Trust Assets Cash and investments $ 4,009,866 $ 1,676,197 $ (1,412,809) $ 4,273,254 Cash and investments with fiscal agent 7,437,190 5,779,007 (7,574,445) 5,641,752 Accounts receivable 61,070 28,514 (62,206) 27,378 Total assets $ 11,508,126 $ 7,483,718 $ (9,049,460) $ 9,942,384 Liabilities Accounts payable $ 236,241 $ 932,571 $ (1,101,774) $ 67,038 General deposits 3,773,654 1,684,005 (1,251,030) 4,206,629 Due to bondholders 7,498,231 6,310,141 (8,139,655) 5,668,717 Total liabilities $ 11,508,126 $ 8,926,717 $ (10,492,459) $ 9,942,384 -115- R K C41. Q 4441!•1* • 404 / lam r,,f 014 v4 'grEd STATISTICAL SECTION This page intentionally left blank. City of Moorpark Overview of Statistical Section Year Ended June 30, 2015 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) 2006 2007 2008 2009 2010 Governmental activities: Invested in capital assets, net of related debt $ 108,190,324 $ 125,900,770 $ 130,071,108 $ 130,581,499 $ 141,095,551 Restricted 57,986,366 100,649,409 101,613,368 94,878,693 91,504,803 Unrestricted 26,965,428 6,458,224 3,641,173 14,213,503 15,828,208 Total governmental activities net position $ 193,142,118 $233,008,403 $235,325,649 $239,673,695 $248,428,562 The City of Moorpark does not have any business-type activities. Source: City of Moorpark CAFR. -116- City of Moorpark Net Position by Component Last Ten Fiscal Years (continued) (Accrual basis of accounting) 2011 2012 2013 2014 2015 Governmental activities: Invested in capital assets, net of related debt $ 145,841,042 $ 139,795,930 $262,271,564 $259,798,991 $260,051,061 Restricted 72,654,599 87,274,980 82,125,331 85,872,675 89,500,647 Unrestricted 13,402,969 7,909,301 10,042,168 15,655,932 22,642,705 Total governmental activities net position $231,898,610 $234,980,211 $354,439,063 $361,327,598 $372,194,413 -117- City of Moorpark Changes in Net Position Last Ten Fiscal Years (Accrual basis of accounting) 2006 2007 2008 2009 2010 Expenditures: General government $ 3,044,381 $ 1,639,628 $ 1,949,206 $ 2,041,596 $ 1,603,279 Public safety 6,230,057 6,317,283 6,882,072 7,035,384 7,016,015 Public services 13,106,843 21,231,766 20,580,204 18,170,325 13,589,878 Parks and recreation 2,771,270 4,293,823 4,551,045 4,470,524 4,934,002 Interest on long-term debt 1,333,370 1,332,541 1,773,841 1,616,843 1,504,502 Total governmental activities expenses 21,867,463 34,815,041 35,736,368 33,334,672 28,647,676 Program revenues: Charges for services: General government 2,201,590 191,674 283,576 232,926 258,431 Public safety 340,341 598,500 633,131 538,636 477,305 Public services 4,163,781 6,612,769 5,743,200 3,172,708 2,769,641 Parks and recreation 536,166 604,904 756,885 644,979 643,593 Total charges for services 7,241,878 8,007,847 7,416,792 4,589,249 4,148,970 Operating contributions and grants 3,237,143 4,489,945 7,113,883 6,172,315 4,128,842 Capital contributions and grants 18,027,831 38,337,638 5,481,972 3,326,778 1,970,931 Total governmental activities program revenues 28,506,852 50,835,430 20,012,647 14,088,342 10,248,743 Net program revenues(expenses) 6,639,389 16,020,389 (15,723,721) (19,246,330) (18,398,933) General revenues and other changes in net position: Taxes: Property tax 2,929,842 3,334,491 4,505,980 7,802,643 7,449,063 Property tax,Redevelopment Agency 5,530,198 6,347,692 6,887,079 7,054,432 6,864,777 Franchise tax 1,080,893 1,126,951 1,150,180 1,171,556 1,171,825 Sales tax 2,260,786 2,192,327 2,306,281 2,329,522 2,382,010 Sales tax in lieu 608,298 704,562 779,263 849,227 588,635 Motor vehicle in lieu 2,734,470 2,860,207 3,038,440 125,307 109,136 Investment income 3,261,384 6,556,186 2,491,856 2,875,649 853,074 Contributed Capital - - - - - Other 135,276 58,841 139,728 386,040 283,372 Gain on sale of property - 276,797 - - - County settlement - - - 1,000,000 - Extraordinary item-Gain on Dissolution of - - - - - Total governmental activities 18,541,147 23,458,054 21,298,807 23,594,376 19,701,892 Changes in net position- governmental activities $25,180,536 $39,478,443 $ 5,575,086 $ 4,348,046 $ 1,302,959 Source: City of Moorpark CAFR. -118- City of Moorpark Changes in Net Position Last Ten Fiscal Years (continued) (Accrual basis of accounting) 2011 2012 2013 2014 2015 Expenditures: General government $ 3,201,184 $ 2,217,953 $ 4,149,965 $ 2,169,069 $ 1,212,685 Public safety 7,070,049 6,158,455 6,550,936 6,882,753 7,024,242 Public services 31,775,462 11,124,523 9,948,865 11,779,873 11,558,575 Parks and recreation 4,658,717 5,704,208 5,755,528 6,026,182 5,614,080 Interest on long-term debt 1,492,604 354,412 - - - Total governmental activities expenses 48,198,016 25,559,551 26,405,294 26,857,877 25,409,582 Program revenues: Charges for services: General government 293,008 407,883 587,915 1,474,249 1,463,859 Public safety 492,847 445,642 809,257 2,657,332 3,325,404 Public services 2,473,770 1,988,453 4,154,598 7,815,032 10,471,498 Parks and recreation 697,787 858,333 973,761 1,913,045 3,119,649 Total charges for services 3,957,412 3,700,311 6,525,531 13,859,658 18,380,410 Operating contributions and grants 5,999,168 3,702,582 3,533,608 4,364,461 4,049,606 Capital contributions and grants 1,703,076 2,106,706 1,879,634 2,010,143 4,636,843 Total governmental activities program revenues 11,659,656 9,509,599 11,938,773 20,234,262 27,066,859 Net program revenues(expenses) (36,538,360) (16,049,952) (14,466,521) (6,623,615) 1,657,277 General revenues and other changes in net position: Taxes: Property tax 7,287,282 6,943,275 6,776,729 6,841,765 7,638,300 Property tax, Redevelopment Agency 6,755,960 3,389,064 - - - Franchise tax 1,207,778 1,231,741 1,222,956 1,222,759 1,284,268 Sales tax 2,577,105 2,622,419 2,730,871 2,695,884 2,749,320 Sales tax in lieu 940,791 857,217 875,160 1,089,362 896,527 Motor vehicle in lieu 170,592 18,590 19,262 15,942 15,399 Investment income 856,413 1,206,622 142,222 1,153,683 1,116,545 Contributed Capital - 663,818 - - - Other 212,487 245,235 299,730 492,755 685,569 Gain on sale of property - - - - - County settlement - - - - - Extraordinary item-Gain on Dissolution of - 356,845 - - - Total governmental activities 20,008,408 17,534,826 12,066,930 13,512,150 14,385,928 Changes in net position- governmental activities $ (16,529,952) $ 1,484,874 $(2,399,591) $ 6,888,535 $ 16,043,205 -119- City of Moorpark Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) 2006 2007 2008 2009 2010 General fund: Reserved $ 2,943,353 $ - $ 95,397 $ 373,209 $ 337,286 Unreserved 18,301,058 24,405,620 3,625,348 2,832,620 2,662,713 Nonspendable - - - - - Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - - - - - Total general fund $21,244,411 $ 24,405,620 $ 3,720,745 $ 3,205,829 $ 2,999,999 All other governmental funds: Reserved $14,124,235 $ 41,864,116 $ 35,103,620 $ 33,719,016 $ 38,208,807 Unreserved, reported in: Special revenue funds 36,903,391 41,486,631 42,761,089 37,278,628 32,207,690 Capital projects funds 1,293,998 16,807,370 39,098,065 35,699,829 33,735,939 Debt Service funds (321,425) 83,243 (1,025,927) 261,336 294,202 Non-major funds 9,724,941 8,693,969 13,384,413 25,043,397 25,335,288 Fund Balances: - Nonspendable - - - - - Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - - - - - Total all other governmental funds $61,725,140 $ 108,935,329 $ 129,321,260 $ 132,002,206 $ 129,781,926 Source: City of Moorpark CAFR. -120- City of Moorpark Fund Balances of Governmental Funds Last Ten Fiscal Years (continued) (Modified accrual basis of accounting) 2011 2012 2013 2014 2015 General fund: Reserved $ - $ - $ - $ - $ - Unreserved - - - - - Nonspendable 220,976 1,275,022 635,176 365,899 660,077 Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned 2,779,024 2,999,000 3,000,000 3,000,000 2,999,941 Total general fund $ 3,000,000 $ 4,274,022 $ 3,635,176 $ 3,365,899 $ 3,660,018 All other governmental funds: Reserved $ - $ - $ - $ - $ - Unreserved, reported in: Special revenue funds - - - - - Capital projects funds - - - - - Debt Service funds - - - - - Non-major funds - - - - - Fund Balances: Nonspendable 14,862,594 3,055,064 10,478,901 10,253,789 10,363,316 Restricted 66,565,551 55,945,095 44,067,428 49,389,385 54,572,775 Committed 795,208 783,281 742,546 698,395 711,399 Assigned 28,849,138 30,892,276 33,084,456 36,190,577 42,221,565 Unassigned (2,124,660) (2,047,164) (2,026,212) (1,825,187) (1,604,570) Total all other governmental funds $ 108,947,831 $ 88,628,552 $ 86,347,119 $ 94,706,959 $ 106,264,485 -121- City of Moorpark Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) 2006 2007 2008 2009 2010 Revenues: Taxes $12,231,076 $13,706,024 $ 15,392,269 $19,716,636 $18,730,771 Licenses and permits 72,365 65,630 72,951 645,010 598,370 Fines and forfeitures 340,341 343,579 358,665 484,930 436,377 Uses of money and property 3,261,384 7,085,104 5,684,111 3,114,881 1,547,229 Charges for services 2,665,391 338,929 677,277 3,813,159 3,284,275 Intergovernmental 6,302,193 6,163,985 7,549,040 3,948,059 2,629,132 Maintenance assessments 1,845,742 1,922,471 4,205,700 3,491,975 1,950,431 Franchise fees 283,162 292,003 301,514 - - Building and safety fees 1,110,715 716,552 530,761 - - Planning and public work fees 3,053,066 1,649,002 1,938,143 - - Development fees 15,568,347 6,403,851 4,501,837 - - Contributions from prop owners - 34,066,993 - - - Other 397,574 2,030,211 433,378 398,539 587,832 Total revenues 47,131,356 74,784,334 41,645,646 35,613,189 29,764,417 Expenditures: Current: General government 2,919,564 1,471,354 1,835,801 1,926,283 1,497,916 Public safety 6,211,461 6,083,917 6,637,757 6,814,425 6,769,484 Public services 11,215,406 9,608,754 12,505,613 11,259,297 12,343,896 Parks and recreation 2,544,206 4,039,888 4,291,867 4,182,091 4,453,400 Capital outlay 10,038,439 19,477,866 14,682,017 8,100,604 5,548,179 Debt service: Principal 435,910 440,000 455,000 475,000 495,000 Interest 1,251,354 1,400,985 1,631,932 1,594,062 1,482,799 Bond issuance costs - 505,588 - - - Total expenditures 34,616,340 43,028,352 42,039,987 34,351,762 32,590,674 Excess of revenues over expenditures 12,515,016 31,755,982 (394,341) 1,261,427 (2,826,257) Other financing sources(uses): Gain from sale of property 1,410 276,797 - - - Bond Proceeds - 11,695,000 - - - Discount on Bonds - (325,401) - - - County settlements 1,000,000 - Transfers in 3,352,002 9,457,260 27,626,755 17,062,650 9,378,101 Transfers out (3,352,002) (9,457,260) (27,626,755) (17,062,650) (9,378,101) Total other financing sources(uses) 1,410 11,646,396 - 1,000,000 - Extraordinary Item - - - - - Net change in fund balances $ 12,516,426 $43,402,378 $ (394,341) $ 2,261,427 $ (2,826,257) Debt service as a percentage of non capital expenditures 7.4% 8.7% 8.3% 8.6% 7.9% Source: City of Moorpark CAFR. -122- City of Moorpark Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (continued) (Modified accrual basis of accounting) 2011 2012 2013 2014 2015 Revenues: Taxes $ 19,042,900 $ 16,147,175 $ 12,662,488 $12,931,981 $ 13,688,319 Licenses and permits 587,186 561,530 498,102 1,279,619 1,249,964 Fines and forfeitures 441,543 446,426 420,555 425,844 384,288 Uses of money and property 1,537,255 1,381,235 482,129 1,533,697 1,512,399 Charges for services 2,579,593 3,559,454 5,170,238 10,785,334 15,951,226 Intergovernmental 4,786,235 1,627,462 2,503,734 3,257,823 5,246,632 Maintenance assessments 2,112,992 2,114,957 1,893,699 2,159,121 2,487,047 Franchise fees - - - - - Building and safety fees - - - - - Planning and public work fees - - - - - Development fees - - - - - Contributions from prop owners - - - - - Other 833,082 1,345,246 167,784 438,612 445,197 Total revenues 31,920,786 27,183,485 23,798,729 32,812,031 40,965,072 Expenditures Current: General government 2,289,299 890,396 2,125,004 1,746,028 2,495,775 Public safety 6,839,355 6,467,065 6,306,906 6,643,550 6,789,765 Public services 12,876,132 8,321,090 7,391,632 9,126,851 10,468,227 Parks and recreation 4,074,490 5,038,957 5,086,773 5,354,601 5,732,314 Capital outlay 24,506,524 4,679,053 5,144,756 1,580,438 3,892,870 Debt service: Principal 1,874,064 590,122 - - - Interest 1,471,516 688,825 - - 4,476 Bond issuance costs - - - - - Total expenditures 53,931,380 26,675,508 26,055,071 24,451,468 29,383,427 Excess of revenues over expenditures (22,010,594) 507,977 (2,256,342) 8,360,563 11,581,645 Other financing sources(uses): Gain from sale of property - - - - - Bond Proceeds - - - - - Discount on Bonds - - - - - County settlements - - - - - Transfers in 3,820,738 4,739,189 3,262,665 4,718,044 7,365,629 Transfers out (2,644,238) (4,739,189) (3,262,665) (4,718,044) (7,365,629) Total other financing sources(uses) 1,176,500 - - - - Extraordinary Item - (19,553,234) - - - Net change in fund balances $(20,834,094) $ (19,045,257) $ (2,256,342) $ 8,360,563 $ 11,581,645 Debt service as a percentage of noncapital expenditures 12.8% 6.2% 0.0% 0.0% 0.0% -123- 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 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% 2015 5,042,223,024 123,500,500 45,844,355 5,119,879,169 909,850,372 74,847,964 7,970,727 976,727,609 0.095% Source: Ventura County Assessor's Office NOTE: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point,the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. -124- City of Moorpark Direct and Overlapping Property Tax Rates (Rate per$100 of assessed value) Last Ten Fiscal Years 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 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 0.02670 0.02490 0.02420 0.02500 0.02640 0.02850 0.03070 0.03240 0.03270 0.03290 School District Metropolitan Water District 0.00520 0.00470 0.00450 0.00430 0.00430 0.00370 0.00370 0.00350 0.00350 0.00350 Moorpark Unified 0.03660 0.03740 0.03310 0.03510 0.03760 0.03980 0.05750 0.04490 0.03950 0.05550 School District Ventura Community 0.01300 0.01270 0.00500 0.01520 0.01390 0.01510 0.01400 0.01910 0.01670 0.01760 College District Total Direct& 2 1.08150 1.07970 1.06680 1.07960 1.08220 1.08710 1.10590 1.09990 1.09240 1.10950 Overlapping Tax Rates 3 City's Share of 1%Levy 0.07447 0.07447 0.07447 0.09094 0.09077 0.90770 0.09077 0.09078 0.09078 0.09078 per Prop 13 General Obligation Debt Rate - - - - - - - - - - 4 Redevelopment Rate 1.00520 1.00470 1.00450 1.00430 1.00430 1.00370 1.00370 - - - 5 Total Direct Rate 0.19150 0.19826 0.19963 0.21254 0.21589 0.21304 0.21047 0.21806 0.09508 0.09498 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 -125- City of Moorpark Principal Property Tax Payers Current Year and Ten Years Ago 2015 2005 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 $ 84,429,300 1.65% $ - - cyo Waterstone Properties Moorpark LLC 70,289,760 1.37% - - cyo Autosafe Airbag 12 California - -% 66,845,295 1.70% Pardee Homes - -% 61,605,433 1.57% Majestic Court Properties - -% 55,532,134 1.41 % PPC GIA Moorpark Associates - -% 50,229,392 1.28% Toll Land XIX LLC - -% 49,130,463 1.25% Moorpark Center LLC 44,953,577 0.88% - - cyo Village at Moorpark LLC 30,641,545 0.60% - - cyo William Lyon Homes - -% 29,184,315 0.74% Kavlico Corporation - -% 28,942,700 0.74% Zelman Marketplace - -% 26,165,931 0.66% Mission Bell West LP 24,503,605 0.48% - - cyo Tuscany Square Partners LLC 22,994,270 0.45% - - cyo EB West Properties Inc. 22,992,708 0.45% - - cyo Laars Inc - -% 21,556,888 0.55% G-S Partnership 22,515,059 0.44 % 19,750,800 0.50% ROIC California 20,881,966 0.41 % - - 0/0 Calabasas BCD 20,542,188 0.40 % - - cyo $ 364,743,978 7.12% $ 408,943,351 10.39% * 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 2014-2015 property data. -126- City of Moorpark Secured Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Collections Fiscal Taxes Levied Fiscal Year of Levy from Total Collections Year Ended for the Percent Previous Percent June 30, Fiscal Year Amount of Levy Years Amount of Levy 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% 2015 4,186,012 3,965,562 94.7 % 127,695 4,093,257 97.8% Source: Ventura County Auditor Controller's Office Levy Letter Note: The amounts presented include City property taxes only. It does not include redevelopment tax increment. 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 -127- City of Moorpark Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Year General Tax Total Total Percentage Debt Ended Obligation Allocation Governmental Primary of Personal Per June 30, Bonds Bonds 1 Activities Government Income 2 Capita 2 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% - 2015 - - - - 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 of the financial statements. 2 These ratios are calculated using personal income and population for the prior calendar year. -128- City of Moorpark Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years Outstanding General Bonded Debt Fiscal Year General Tax Percent of Ended Obligation Allocation Assessed Per June 30, Bonds Bonds 1 Total Value 2 Capita 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 - - - - % - 2015 - - - - % - General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). '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. 2Assessed value has been used because the actual value of taxable property is not readily available in the State of California. -129- City of Moorpark Direct and Overlapping Debt City Assessed Valuation 2014-15 $ 5,119,879,169 Redevelopment Agency Incremental Valuation 976,727,609 Adjusted Assessed Valuation $ 4,143,151,560 Estimated Share of Percentage Debt as of Overlapping Applicable 6/30/2015 Debt Direct and Overlapping Tax and Assessment Debt: Metropolitan Water District 0.221 % $ 110,420,000 $ 244,028 Ventura Community College District 4.487% 303,412,082 13,614,100 Conejo Valley Unified School District 0.016% 63,911,497 10,226 Moorpark Unified School District 93.366% 56,499,983 52,751,774 City of Moorpark 100.000% - - City of Moorpark Community Facilities District No.97-1 100.000% 4,940,000 4,940,000 City of Moorpark Community Facilities District No.2004-1 100.000% 13,650,000 13,650,000 City of Moorpark 1915 Act Bonds 100.000% 920,000 920,000 Total Direct and Overlapping Tax&Assessment Debt $ 553,753,562 $ 86,130,128 Overlapping General Fund Obligation Debt: Ventura County General Fund Obligations 4.485% $ 385,475,000 $ 17,288,554 Ventura County Superintendent of Schools COPs 4.485% 10,795,000 484,156 Moorpark Unified School District COPs 93.366% 6,020,000 5,620,633 Total Overlapping General Fund Obligation Debt $ 402,290,000 $ 23,393,343 Overlapping Tax Increment Debt(Successor Agency): 100.000% $ 24,920,000 $ 24,920,000 Total Direct Debt $ - Combined Total Debt` $ 980,963,562 $ 134,443,471 Total direct and overlapping debt $ 134,443,471 Notes: Excludes tax and revenue anticipation notes,revenue,mortgage revenue and tax allocation bonds and non-bonded capital lease obligations, of which the City has none. 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. -130- City of Moorpark Legal Debt Margin Information Last Ten Fiscal Years 2006 2007 2008 2009 2010 Assessed valuation $3,721,591,791 $4,157,360,033 $4,558,597,806 $4,700,305,496 $4,619,910,655 Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 930,397,948 1,039,340,008 1,139,649,452 1,175,076,374 1,154,977,664 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 139,559,692 155,901,001 170,947,418 176,261,456 173,246,650 Total net debt applicable to limit: General Obligation Bonds Legal debt margin $ 139,559,692 $ 155,901,001 $ 170,947,418 $ 176,261,456 $ 173,246,650 Total debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% Source: City of Moorpark, Finance Department Ventura County Tax Assessor's Office Note: 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. -131- City of Moorpark Legal Debt Margin Information Last Ten Fiscal Years (continued) 2011 2012 2013 2014 2015 Assessed valuation $4,659,133,835 $4,662,536,870 $4,596,277,650 $4,718,569,672 $5,042,223,024 Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 1,164,783,459 1,165,634,218 1,149,069,413 1,179,642,418 1,260,555,756 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 174,717,519 174,845,133 172,360,412 176,946,363 189,083,363 Total net debt applicable to limit: - - - - - General Obligation Bonds Legal debt margin $ 174,717,519 $ 174,845,133 $ 172,360,412 $ 176,946,363 $ 189,083,363 Total debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% -132- 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 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 2015 - - - 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 the Successor Agency outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expenses. -133- City of Moorpark Demographic and Economic Statistics Last Ten Calendar Years Median Calendar Household Household Unemployment Year Population Income Income Rate 2006 35,836 $ 930,010 $ 85,122 4.4 % 2007 36,480 969,311 87,153 4.7 % 2008 36,971 1,075,236 95,393 5.7 % 2009 37,086 1,069,535 94,593 10.3 % 2010 37,576 1,086,966 94,881 10.6 % 2011 34,710 1,032,167 97,537 10.0 % 2012 34,826 960,667 90,478 8.7 % 2013 34,904 1,065,253 100,104 6.4 % 2014 35,172 1,098,171 102,411 6.2 % 2015 35,727 1,115,499 102,411 5.2 % Sources: California State Department of Finance -134- City of Moorpark Principal Employers Current and Ten Calendar Years Ago 2015 Percent of Number of Total Employer Employees Employment PennyMac 1,279 7.1 % Moorpark Unified School District 869 4.9 % Moorpark College 661 3.7 % Pentair Water Pool and Spa 530 3.0 % Kavlico 390 2.2 % Benchmark Electronics 256 1.4 % Target 142 0.8 % Ensign-Bickford Aerospace 140 0.8 % Test Equity 121 0.7 % Kretek International 120 0.7 % "Total Employment" as used above represents the total employment of all employers located within City limits. The City does not present 2005 information because date for that year was not available. Source: Chamber of Commerce City-data.com Bureau of Labor Statistics -135- City of Moorpark Full-Time and Part-Time City Employees by Function Last Ten Fiscal Years Function 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 General government 31 30 26 26 26 27 28 27 27 26 Public safety(crossing guards) 7 7 7 6 5 5 3 3 3 3 Public services 17 26 22 22 20 16 18 19 19 22 Parks and recreation 41 49 54 56 55 54 51 58 75 70 Total 96 112 109 110 106 102 100 107 124 121 Public safety 1 31 42 42 38 38 40 39 40 40 40 1 Police and fire services were provided by the County. Fire = 18 and police =22 Source: City of Moorpark, Finance Department -136- City of Moorpark Operating Indicators by Function Last Ten Fiscal Years 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Police:(A) Arrests 1,653 1,890 1,732 1,412 2,207 1,266 1,158 1,120 1,148 938 Parking citations issued 2,890 4,160 2,860 3,254 4,969 4,887 5,704 5,129 2,736 3,117 Fire:(B) Number of"prime"emergency calls 1,329 1,351 1,362 1,100 1,945 1,707 2,174 1,851 1,835 1,996 Business Inspections` 125 123 130 143 115 196 196 132 500 694 Public works:(C) Street resurfacing(miles) - 30.0 3.8 - 5.0 2.0 - 4.5 - - Parks and recreation:(D) Number of recreation classes 338 479 378 265 419 325 308 300 265 303 Number of facility rentals 338 180 210 186 230 277 118 226 103 248 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. -137- City of Moorpark Capital Asset Statistics by Function Last Ten Fiscal Years 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 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 78 79 79 79 79 79 79 79 Streetlights 2,347 2,497 2,510 2,518 2,518 2,620 2,620 2,620 2,620 2,620 Traffic signals 17 17 20 20 20 21 21 21 21 21 Parks and recreation: Parks 16 16 16 17 18 18 18 18 18 19 Community centers 2 2 2 2 2 2 2 2 2 2 1Of the streetlights,2,612 are owned by Edison and 8 are owned by the City Source: City of Moorpark -138- This page intentionally left blank.