Loading...
HomeMy WebLinkAboutACFR 2017 QP% V CAC's o111.110 �2 pv i.a�� : Ci. ty 09, q ^ 41 rep 3 California . , . . , . ;.,,... ,. .,_ . . ..._. a ,.... .,,,, .. •_,.?,-„-. , . , ..... r • .., i,„ _-„,„. „ . 2 , - J., ' •..3%- . . , r. • ...„.f. f. 4.$ '2 -e. '.'':•• lai? ,..4 . et • • • ., "1 .e'.• . A. ,,,,._,....., . . ,,,,.., :,.: ._. .,, -. , ..,v;,,,,„.--i-._ , 1 v 0 mak?.-5'4-44 j '6. "� lig. '+ i ,. is" .�`=_i . �' '" ` r ` t . `' x • t 4AMy - .41.....\,.--- .1 Y - Comprehensive Annual Financial Report Fiscal Year Ending June 30, 2017 ,. CITY OF MOORPARK, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2017 ¢4 RW( coo 4:,;Ntsair Si ha VIN •i M II..7 i II jr011114• rigerrAl L-1144.. Illelt7iditbcto m 0.11 i P. nr lrED .0)v Prepared By: Ron Ahlers, Finance Director Irmina Lumbad, Deputy Finance Director City of Moorpark Table of Contents Year Ended June 30, 2017 PAGE I. INTRODUCTORY SECTION Letter of Transmittal 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 16 Statement of Activities 17 Fund Financial Statements Balance Sheet- Governmental Funds 18 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 25 Statement of Fiduciary Net Position 26 Statement of Changes in Fiduciary Net Position 27 Notes to the Basic Financial Statements 28 Required Supplementary Information: Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - General Fund 71 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - Street and Traffic Safety Special Revenue Fund 74 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - Assessments Districts Special Revenue Fund 75 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - Parks/Public Facilities Special Revenue Fund 76 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - Low-Mod Housing Asset Special Revenue Fund 77 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - Community Development Special Revenue Fund 78 Required Supplementary Information - Budgetary Comparison Schedule - Budget and Actual - Endowment Special Revenue Fund 79 City of Moorpark Table of Contents (continued) Year Ended June 30, 2017 PAGE Required Supplementary Information -Continued: Other Post-Employment Benefits- Schedule of Funding Progress 80 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 81 Schedule of Plan's Contributions - Last 10 years 82 Notes to the Required Supplementary Information 83 Supplementary Information: Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual: Police Facilities Fee Major Capital Projects Fund 84 Special Projects Major Capital Projects Fund 85 Non-Major Governmental Funds 86 Non-Major Governmental Funds- Combining Balance Sheet 88 Non-Major Governmental Funds -Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 94 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual: Library Services Special Revenue Fund 100 Traffic Safety Special Revenue Fund 101 City Affordable Housing Special Revenue Fund 102 Tierra Rejada/Spring Road A.O.C. Special Revenue Fund 103 Casey/Gabbert Road A.O.C. Special Revenue Fund 104 Los Angeles A.O.C. Special Revenue Fund 105 Freemount Storm Drain A.O.C. Special Revenue Fund 106 State Gas Tax Special Revenue Fund 107 Art in Public Places Special Revenue Fund 108 State and Federal Assistance Special Revenue Fund 109 Local Transportation Transit Special Revenue Fund 110 Prop 1B Local Streets and Roads Special Revenue Fund 111 Solid Waste Special Revenue Fund 112 Capital Projects Capital Projects Fund 113 City Hall Building Capital Projects Fund 114 Equipment Replacement Capital Projects Fund 115 Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds 116 III. STATISTICAL SECTION Net Position by Component - Last Ten Fiscal Years 117 Changes in Net Position - Last Ten Fiscal Years 119 Fund Balances of Governmental Funds - Last Ten Fiscal Years 121 Changes in Fund Balances of Governmental Funds- Last Ten Fiscal Years 123 City of Moorpark Table of Contents (continued) Year Ended June 30, 2017 PAGE III. STATISTICAL SECTION -Continued Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 125 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 126 Principal Property Tax Payers- Current Year and Ten Years Ago 127 Secured Property Tax Levies and Collections - Last Ten Fiscal Years 128 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 129 Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years 130 Direct and Overlapping Debt 131 Legal Debt Margin Information - Last Ten Fiscal Years 132 Pledged Revenue Coverage - Last Ten Fiscal Years 134 Demographic and Economic Statistics - Last Ten Calendar Years 135 Principal Employers - Current and Ten Calendar Years Ago 136 Full-Time and Part-Time City Employees by Function- Last Ten Fiscal Years 137 Operating Indicators by Function - Last Ten Fiscal Years 138 Capital Asset Statistics by Function - Last Ten Fiscal Years 139 ¢QPaK CA0 i i II r �o /o �2 401111W 1 _41 lot) ",. ON*/ oc>A0A'qU n rEp ,� INTRODUCTORY SECTION This page intentionally left blank. ;; o CITY OF MOORPARK troop a FINANCE DEPARTMENT 799 Moorpark Avenue,Moorpark,California 93021 Main City Phone Number(805)517-6200 Fax(805)532-2545 moorpark@moorparkca.gov """---140 �V� December 11, 2017 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, 2017. 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 2016/17. -i- JANICE S.PARVIN ROSEANN MIKOS,Ph.D. DAVID POLLOCK KEN SIMONS MARK VAN DAM Mayor Councilmember Councilmember Councilmember Mayor Pro Tern Responsibility for both the accuracy of this data, and the completeness and fairness of its presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner that presents fairly the account groups and the financial position and operational results of the City's various funds and component units. All disclosures necessary to enable the reader to gain an understanding of the City's activities have been included. THE REPORTING ENTITY AND ITS SERVICES The financial reporting entity includes all the funds of the City 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 (SUCCESSOR AGENCY) 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 1x 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). -ii- PROFILE OF THE CITY OF MOORPARK The City provides a full range of services to its residents with a total regular full-time staff of approximately 56 and part-time staff of approximately 45 employees. Major services such as police (contracted with Ventura County Sheriff), attorney, library, development engineering and inspection, building and safety plan check/inspection, transit, street sweeping and landscape maintenance are provided through contractual arrangements. In addition, fire protection is provided by the Ventura County Fire District. The City provides services such as emergency management, affordable housing, economic development, planning, code compliance, recreation programs, vector/animal control, park and facilities maintenance, street maintenance, city engineering, crossing guard and administrative management services with city employees. 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 36,715 (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. -iii- INTERNAL CONTROLS The City's management is responsible for developing and establishing an internal control structure to ensure that the assets of the government are protected from loss, theft, misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived; and 2) the valuation of the costs and benefits requires estimates and judgments by management. ANNUAL AUDIT An independent accounting firm has performed the annual audit of the City's financial statements for the fiscal year ended June 30, 2017. 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 2016/2017 amounted to $35,720,629 and $15,737,652 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, 2017, approximately $21 million was invested with the Ventura County Pool; $79 million in various U.S. Treasury Notes, Agency Securities and money markets; about $9 million in certificates of deposit; about $3 million in the State Treasurer's Local Agency Investment Fund (LAIF); and $5 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 -iv- 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, 2017, have a net ending balance of$265 million. LONG-TERM LIABILITIES/BONDED INDEBTEDNESS At June 30, 2017, the City has no outstanding bonds or other debt but does have long- term liabilities in the approximate amount of $3.6 million comprised of $627,796 for employee compensated absences (accrued leave) and $2,973,847 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. GASB 68 requires the City to record net pension liability on the Statement of Net Position. This is the third year the City has recorded a net pension liability and the impact is a reduction in net position by $3 million for June 30, 2017. In January 2015, the City made an extra contribution of $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 82% funded. The City contributed $644,768 in October 2015 to fully fund the OPEB liability. The City has a "Net OPEB Asset" of $604,268 on the Statement of Net Position. Please read Note 8) OTHER POST EMPLOYMENT BENEFITS in the CAFR. The Successor Agency has the 2016 Tax Allocation Refunding Bonds (2016 Bonds) and the 2014 Tax Allocation Refunding Bonds (2014 Bonds). The 2016 Bonds and 2014 Bonds outstanding principal as of June 30, 2017, were $10.4 million and $12.0 million, respectively. In July 2016, the Successor Agency issued the 2016 Bonds to refund the 2006 Tax Allocation Bonds. In November 2014, the Successor Agency issued the 2014 Bonds to refund the 1999 Tax Allocation Refunding Bonds and the 2001 Tax Allocation Bonds. Please read Note 14) SUCCESSOR AGENCY PRIVATE- PURPOSE TRUST FUND TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK (SARA) in the CAFR. -v- 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, 2016. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENT We would like to express appreciation to all City staff that assisted and contributed to the preparation of this report, particularly to the members of the Finance Department. We would also like to extend our appreciation to the auditors, Rogers, Anderson, 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, ' tiAjyter STEVEN KUENY RON AHLERS CITY MANAGER FINANCE DIRECTOR -vi- 14 QPck Ci claw" • 09 f2 /04,1v • • 674 i .4 0 ill. 1St: nif -11-ED 30v Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2017 DIRECTORY OF CITY OFFICIALS As of June 30, 2017 CITY COUNCIL Janice S. Parvin, Mayor Roseann Mikos, Councilmember David Pollock, Councilmember Ken Simons, Councilmember Mark Van Dam, Mayor Pro Tern CITY MANAGEMENT STAFF Steven Kueny, City Manager Deborah Traffenstedt, Assistant City Manager David Bobardt, Community Development Director Sean Corrigan, City Engineer/Public Works Director Jeremy Laurentowski, Parks& Recreation Director Ron Ahlers, Finance Director -vii- CITY OF MOORPARK Arts Commission ORGANIZATION CHART [ Harks and Honorable City Rr�crr�»lion -- CouncilCily Allnrnry (Contract) Commission } Planning[ }-I City Manager Commission Library --, Board [ Police Services (Contract) Parks, Recreation ." 1 1 Community Administrative & Community City Engineer/ Finance Devi-low,leo Services Services Public Works Department Department Department Department • Department J -, / • Building and Satery • City Clerk • Art in Public Places • Assessment District • Cash Management • Code Compliance - Human Resources - Parks and Landscape Street 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 - Public Information Maintenance - Street Maintenance Budget Development& - Intergovernmental facility Operations and - Transit Administration Relations Maintenance - Successor Agency to the - Solid Waste&Recycling - Property Management Redevelopment Agency - Emergency Management - Library - Housing Programs - Animal ControWector -VIII- G 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, 2016 Cluaretab. P. "laza Executive Director/CEO -ix- This page intentionally left blank. o¢4aK C44, 0,,,,, I, 41.1111r gallk7 grabot Ord -Mr MID, AlaVlip;2 q n FINANCIAL SECTION This page intentionally left blank. RA ROGERS,ANDERSON, MALODY& SCOTT, LLP MA CERTIFIED 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 Bradferd A.Welebir,CPA,MBA,CGMA We have audited the accompanying financial statements of the governmental Jay H.Zercher,CPA(Partner Emeritus) activities, each major fund, and the aggregate remaining fund information of the Phillip H.Waller,CPA(Partner Emeritus) City of Moorpark (City), California, as of and for the year ended June 30, 2017, MANAGERS/STAFF and the related notes to the financial statements, which collectively comprise the Jenny Liu,CPA,MST City's basic financial statements as listed in the table of contents. Seong-Hyea Lee,CPA,MBA Charles De Simoni,CPA Management's responsibility for the financial statements Nathan Statham,CPA,MBA Gardenya Duran,CPA Management is responsible for the preparation and fair presentation of these Brianna Schultz,CPA financial statements in accordance with accountingprinciples generallyaccepted Lisa Dongxue Guo,CPA,MSA p p in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 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 MEMBERS material misstatement of the financial statements, whether due to fraud or error. American Institute of In making those risk assessments, the auditor considers internal control relevant Certified Public Accountants to the entity's preparation and fair presentation of the financial statements in POPS The AICPA Alliance order to design audit procedures that are appropriate in the circumstances, but for CPA Firms not for the purpose of expressing an opinion on the effectiveness of the entity's Governmental Audit internal control. Accordingly, we express no such opinion. An audit also includes Quality Center evaluating the appropriateness of accounting policies used and the 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, 2017, 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. 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 11, 2017, 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. 40,e,ts, .cox, 4u1 1 ,eft, LLP. San Bernardino, CA December 11, 2017 -3- This page intentionally left blank. 4fL,s; �'/4- 0 1(VW 16,4a7 IEritiVan --7--1;(7! Management's Discussion and Analysis This page intentionally left blank. City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2017 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, 2017. 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 2016/17 by $384,804,147 (Net Position). This amount is reflective of the entire City which includes all funds. Of this amount, $23,886,449 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" ($265,474,327). Restrictions for Special Revenue Funds ($95,443,371), this reduces the Total Net Position to the Unrestricted Net Position ($23,886,449). The Statement of Net Position is presented on page 16. • The City's Total Net Position increased by $6,978,578 during the current fiscal year. The Statement of Activities is presented on page 17. • As of June 30, 2017, the City's governmental funds (General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds) reported combined ending fund balances of$115,169,345, a decrease of$1 ,656,773 from the prior year. The decrease is a result of the city constructing capital projects during the year. • At the end of the current fiscal year, fund balances for the General Fund were $3,170,193 ($158,857 is in nonspendable form, and $3,011 ,336 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 -4- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2017 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. The statement of net position presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Over time, increases and decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenditures are reported in this statement for some items that will only result in cash flows in future fiscal periods (i.e., uncollected taxes and earned but unused 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 26-27). The government-wide financial statements can be found on pages 16 and 17 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 -5- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2017 ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and fiduciary funds. Governmental Funds. Governmental Funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City's near-term financial requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long-term impact of the City's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances, provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains a variety of individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Street and Traffic Safety, Assessment Districts, Parks/Public Facilities, Low and Moderate Income Housing Asset, 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 all its funds. A budgetary comparison statement is provided for all funds with an annually adopted budget to demonstrate compliance with their respective budgets. The budgetary comparison statements are located in the basic financial statements. The non-major governmental fund budgetary comparisons are located in the non-major governmental funds section of the report. -6- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2017 Fiduciary Funds. Fiduciary funds, which consist solely of trust and agency funds, are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of the fund are not available to support the City's own programs. Fiduciary funds are custodial in nature and, therefore, the accounting used does not involve the measurement of the results of operations. The basic fiduciary fund financial statement can be found on pages 26-27 of this report. The assets, liabilities, fund equity and operations of the dissolved Agency were transferred to the "Successor Agency Private Purpose Trust Fund". Notes to the Basic Financial Statements. The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 28-70 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 $385 million at the close of the current fiscal year. The City's net investment in capital assets, net of related debt reflects a positive $265 million. As shown on Table 1 , the largest portion of the City's net position (69%) is its investment in capital assets. The City uses these capital assets (parks, streets, sidewalks, rights of way etc.) to provide services to citizens; consequently, these assets are not available for future spending. An additional portion of the City's net position (25%) 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, 2017, 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. -7- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2017 Table 1 Net Position Governmental Activities As of June 30, 2017 and 2016 2017 2016 Assets: Current and other assets $ 126,443,937 $ 123,270,061 Capital Assets 265,474,327 259,824,449 Total Assets: 391,918,264 383,094,510 Deferred Outflows of Resources: Pension related 3,037,579 2,846,763 Liabilities: Other liabilities 7,737,173 4,744,189 Total Liabilities: 7,737,173 4,744,189 Deferred Inflows of Resources: Pension related 2,414,523 3,371,515 Net Position: Net invested in capital assets 265,474,327 259,824,449 Restricted 95,443,371 94,421,242 Unrestricted 23,886,449 23,579,878 Total Net Position $ 384,804,147 $ 377,825,569 The City's net position increased by $7.0 million during the current fiscal year as a result of increase development activity within the City. -8- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2017 Changes in Net Position Governmental Activities For the Years Ended June 30, 2017 and 2016 2017 2016 Revenues: Program Revenues: Charges for services $ 13,894,579 $ 10,061,140 Operating contributions and grants 6,021,546 3,943,429 Capital contributions and grants 993,530 2,014,302 General Revenues: Property taxes, levied for general purposes 9,332,969 7,923,937 Franchise taxes 1,559,634 1,276,932 Sales taxes 3,854,408 3,316,402 Sales taxes in lieu - 730,083 Investment income 347,582 2,447,983 Other 215,621 1,607,108 Total Revenues: 36,219,869 33,321,316 Expenses: General government 3,336,050 795,772 Public safety 9,302,239 7,614,298 Public services 9,513,380 12,162,933 Parks and recreation 6,791,321 7,117,157 Streets and roads 274,954 - Interest on long-term debt 23,347 - Total Expenses: 29,241,291 27,690,160 Increase in net position 6,978,578 5,631,156 Net position, beginning of year 377,825,569 372,194,413 Net position, end of year $ 384,804,147 $ 377,825,569 -9- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2017 Capital Program Revenues Contributions and Grants, 5T Charges for eServices, ContribuOptionratings 66 °'a and Grants, 2€ °0 General Revenues Investment income Other 2% 1% Sales taxes 25% Franchise taxes Property 10% taxes 62% -10- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2017 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. GASB 54 requires fund balance classifications that focus 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 $115,169,345. This is a decrease of $1 ,656,773 in comparison with the prior year. $158,857 or 0.1% is nonspendable, $61 ,978,590 or 53.8% is restricted to specific purpose, $847,588 or 0.7% is committed, $50,386,413 or 43.8% is assigned and $1 ,797,897 or 1 .6% 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 $3,170,193, which increased by $149,891 over prior year. Asa measure of the General Fund's liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund balance represents 19% of total General Fund expenditures and transfers out. This is a healthy reserve. Key factors for revenues and expenses when compared to fiscal year 2015/16 are as follows: • The City's property tax revenues increased by $189,837 or 5.7%. • Sales tax revenues increased by approximately $538,006 or 16.2% as a result of the "triple flip" cessation. Sales tax allocation reverted to the full 1 % Bradley- burns rate because of the mid-year cessation of the "triple flip" in 2016. When combined with the "triple flip", total sales tax decreased by $192,078 or 4.7%. -11- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2017 • The Sales Tax Compensation or "triple flip" decreased by $730,083 or 100%. This revenue ceased mid-year from the State and is now allocated to Sales Tax (see above). • Interest earnings decreased by $659,057 or 94.8% due to unrealized market value losses. • Expenditures and transfers out ended the year $1 ,493,012 or 8.4% less than the prior year figure. The prior year the City transferred $1 .4 million more to the Special Projects fund than in the current year Street and Traffic Safety Fund (Includes the Traffic System Management Fund, City-Wide Traffic Mitigation Fund and Crossing Guard Fund) The fund balance of the Street and Traffic Safety Fund decreased by $1 .8 million due to construction of trail project at Arroyo Vista Community Park and widening of Moorpark Avenue. Assessment District Fund The fund balance of the Assessment District Fund increased by $518,698 from the prior year. Increasing conservation and more abundant rain fall helped reduce operating costs of water and landscaping. Parks/Public Facilities Fund The fund balance of the Parks/Public Facilities Fund decreased by $765,282 this year due to the construction of the trail project at Arroyo Vista Community Park. Low and Moderate Income Housing Asset Fund The City elected to become the Successor Housing Agency and created the Low and Moderate Income Housing Asset Fund for this purpose. There was little activity this past year. Community Development Fund This fund received a transfer in from the General Fund in the amount of$490,276. This subsidy reflects the pattern that development fees decreased and are providing less revenues for operations of the Community Development Department. Endowment Fund The fund balance of the Endowment Fund increased by $106,401 . This past year this fund was used for the purchase of three properties from the Successor Agency in accordance with the approved Long Range Property Management Plan. Police Facilities Fee Fund The fund balance of the Police Facilities Fund improved by $141 ,150 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. -12- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2017 Special 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 $1 .4 million this past year. The June 30, 2017 fund balance is about $28.1 million. Non-Major Governmental Funds The fund balance of all other Non-Major Governmental Funds decreased by $952,348 from the previous fiscal year due to capital outlay expenditures of about $3 million. General Fund Budgetary Highlights The City adopts annual appropriated operating budgets for its governmental funds (General Fund, Special Revenue Funds, Debt Service Funds, and Capital Project Funds 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, 2017, were revenues exceeding expenditures by approximately $3.7 million which was transferred, on its majority, to the Special Projects Fund. Revenues plus Transfers In were $439,884 more than the final budget and expenditures plus Transfers Out ended the year under budget (final) by $4.3 million. Almost one-half of the revenue increase was due to Property tax increase of $190,000. During the fiscal year, the City Council appropriated an additional $1 million in the General Fund expenses for prior year projects and purchase orders along with funding new projects. The City has a history of not spending the entire appropriation, this along with the additional appropriation created the under budget of$4.3 million noted above. CAPITAL ASSET AND LONG-TERM LIABILITIES Capital Assets. The City's investment in capital assets as of June 30, 2017, amounted to $265 million (net of accumulated depreciation). This investment, detailed in Table 3, includes land, rights of way, construction in progress, buildings and improvements, machinery and equipment, and infrastructure. The total increase in the City's investment in capital assets for the current fiscal year was $5.6 million. -13- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2017 Capital Assets (net of depreciation) Governmental Activities As of June 30, 2017 and 2016 2017 2016 Land $ 44,302,328 $ 41,966,406 Rights of Way 123,302,765 123,302,765 Construction in Progress 18,818,320 12,120,583 Buildings and improvements 25,258,537 26,365,877 Machinery and equipment 2,821,857 3,229,119 Infrastructure 50,970,520 52,839,699 Total $ 265,474,327 $ 259,824,449 GASB 34 requires the City 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 $3,601 ,643, which are the net pension liability ($2,973,847) and the employee compensated absences payable ($627,796). The City implemented GASB 68, Accounting and Financial Reporting for Pensions, in the fiscal year 2014-15. In January 2015, the City contributed $3.6 million to pay down the net pension liability. An additional $4 million contribution to pay down the net pension liability was made in September 2017; this is not reflected in this year's financial statements. Additional information on the City's long-term liabilities can be found in Note 6 on page 49 of the basic financial statements. Note 7, Defined Benefit Pension, discloses the pension plan data according to GASB 68. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The slow economic recovery in conjunction with the rising costs of police services and utilities and the ultra-low interest rate environment combined to cause strains in the City's General Fund. Certain costs continue to outpace the growth seen in major General Fund revenues such as property and sales tax, including increases in pension costs, parks and landscape maintenance and the Ventura County Sheriffs Contract. There is also an increasing need for the General Fund to partially support services that -14- City of Moorpark Management's Discussion and Analysis Year Ended June 30, 2017 in the past were self-supporting or required a lower General Fund contribution such as: street lighting, landscaping, engineering and planning services. The City has additional protections from the State taking our monetary resources as a result of the 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 the fiscal year 2017/18 budget, the City took into consideration the following factors: • Sales Tax revenues assume a minor increase from fiscal year 2016/17 • Property Tax and Vehicle License fees revenue are projected to increase slightly • Interest income will remain stable at an average rate of return of just over 1%. • Increase of 0.041% in PERS employer retirement rate from 8.377% to 8.418% effective July 1 , 2017. This rate is projected to increase to over 10% within three years. • Increase in employee compensation from a general 2% cost of living adjustment and increases in medical insurance premiums. • Projections indicate our cost for general liability and workers compensation insurance will both slightly decrease for fiscal year 2017/18 when compared to fiscal year 2016/17 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 2017/18 budget as adopted by the City Council is a balanced budget and will serve as a guide in planning for the future. REQUESTS FOR INFORMATION This management's discussion and analysis is designed to provide citizens, taxpayers, customers, investors, and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have questions or need additional financial information, please contact the Finance Department at City Hall, 799 Moorpark Avenue, Moorpark, CA 93021 , or at www.MoorparkCA.gov. -15- ¢Q PaK c4�o 0 Lari ,,,wpw ft(07 vwd, o,41 O "IrED 3v‘'1 BASIC FINANCIAL STATEMENTS City of Moorpark Statement of Net Position June 30, 2017 Governmental Activities ASSETS Cash and investments $ 109,587,760 Receivables, net: Accounts 1,978,385 Interest 512,233 Prepaid items 17,371 Net OPEB asset 604,268 Property held for resale 6,893,496 Long term notes and loans receivables 6,850,424 Capital assets: Non-depreciable 187,742,761 Depreciable, net of accumulated depreciation: Buildings and improvements 25,258,537 Machinery and equipment 2,821,857 Infrastructure 49,651,172 Total assets 391,918,264 DEFERRED OUTFLOWS OF RESOURCES Pension related 3,037,579 LIABILITIES Accounts payable and accrued liabilities 3,835,392 Unearned revenues 300,138 Noncurrent liabilities: Due within one year 364,614 Due in more than one year 263,182 Net pension liability 2,973,847 Total liabilities 7,737,173 DEFERRED INFLOWS OF RESOURCES Pension related 2,414,523 NET POSITION Net investment in capital assets 265,474,327 Restricted for: Public services 57,204,567 Recreation services 5,080,464 Public safety 21,395,540 Housing activities 11,762,800 Unrestricted 23,886,449 Total net position $ 384,804,147 The accompanying notes are an integral part of these financial statements. -16- City of Moorpark Statement of Activities Year Ended June 30, 2017 Program Revenues Operating Capital Net Charges for Contributions Contributions Governmental Functions/Programs Expenses Services and Grants and Grants Activities Primary Government Governmental activities: General government $ 3,336,050 $ 960,934 $ - $ - $ (2,375,116) Public safety 9,302,239 2,623,885 - - (6,678,354) Publicservices 9,513,380 6,499,441 6,021,546 993,530 4,001,137 Parks and recreation 6,791,321 3,810,319 - - (2,981,002) Streets and roads 274,954 - - - (274,954) Interest on long-term debt 23,347 - - - (23,347) Total governmental activities 29,241,291 13,894,579 6,021,546 993,530 (8,331,636) Total primary government $ 29,241,291 $ 13,894,579 $ 6,021,546 $ 993,530 General revenues: Taxes: Property tax,levied for general purpose 9,332,969 Franchise fee 1,559,634 Sales tax 3,854,408 Investment income 347,582 Other 215,621 Total general revenues 15,310,214 Change in net position 6,978,578 Net position,beginning of year 377,825,569 Net position,end of year $ 384,804,147 The accompanying notes are an integral part of these financial statements. -17- City of Moorpark Balance Sheet—Governmental Funds June 30, 2017 Special Revenue Street and Assessment General Traffic Safety Districts ASSETS Cash and investments $ 3,032,423 $ 21,695,532 $ 5,744,692 Receivables, net: Accounts 1,389,902 41,645 128,773 Interest - - - Notes and loans - - - Due from other funds 143,237 - - Prepaid items 15,620 1,751 - Property held for resale - - - Total assets $ 4,581,182 $ 21,738,928 $ 5,873,465 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 1,293,374 $ 413,667 $ 243,241 Due to other funds - - - Unearned revenues - - - Total liabilities 1,293,374 413,667 243,241 Deferred inflows of resources: Unavailable revenues 117,615 - - Total deferred inflows of resources 117,615 - - Fund balances: Nonspendable 158,857 - - Restricted - 21,325,261 5,630,224 Committed - - - Assigned - - - Unassigned 3,011,336 - - Total fund balances(deficit) 3,170,193 21,325,261 5,630,224 Total liabilities, deferred inflows of resources and fund balances $ 4,581,182 $ 21,738,928 $ 5,873,465 The accompanying notes are an integral part of these financial statements. -18- Continued Capital Special Revenue Projects Low-Mod Police Parks/Public Income Community Facilities Facilities Housing Asset Development Endowment Fee $ 5,837,752 $ 178,194 $ 1,173,375 $ 13,210,368 $ 1,244 23,575 322 4,107 23,727 258 315,456 - - - 5,233,968 - - - - - - 1,186,906 - - 6,316,148 - - - $ 5,861,327 $ 12,044,088 $ 1,177,482 $ 14,421,001 $ 1,502 $ 309,890 $ 8,493 $ 1,176,258 $ 4,433 $ - 458,855 - - - 1,186,905 10,000 - - - 768,745 18,493 1,176,258 4,433 1,186,905 12,118 4,346,699 250 - - 12,118 4,346,699 250 - - 5,080,464 7,678,896 - - - - 974 14,416,568 - - - - - (1,185,403) 5,080,464 7,678,896 974 14,416,568 (1,185,403) $ 5,861,327 $ 12,044,088 $ 1,177,482 $ 14,421,001 $ 1,502 -19- City of Moorpark Balance Sheet—Governmental Funds Continued June 30, 2017 Capital Projects Non-major Total Special Governmental Governmental Projects Funds Funds ASSETS Cash and investments $ 27,684,571 $ 31,029,609 $ 109,587,760 Receivables, net Accounts - 366,076 1,978,385 Interest - 196,777 512,233 Notes and loans - 1,616,456 6,850,424 Due from other funds 458,855 30,073 1,819,071 Prepaid items - - 17,371 Property held for resale - 577,348 6,893,496 Total assets $ 28,143,426 $ 33,816,339 $ 127,658,740 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ 386,036 $ 3,835,392 Due to other funds - 173,311 1,819,071 Unearned revenues - 290,138 300,138 Total liabilities - 849,485 5,954,601 Deferred inflows of resources: Unavailable revenues - 2,058,112 6,534,794 Total deferred inflows of resources - 2,058,112 6,534,794 Fund balances: Nonspendable - - 158,857 Restricted - 22,263,745 61,978,590 Committed - 847,588 847,588 Assigned 28,143,426 7,825,445 50,386,413 Unassigned - (28,036) 1,797,897 Total fund balances(deficit) 28,143,426 30,908,742 115,169,345 Total liabilities, deferred inflows of resources and fund balances $ 28,143,426 $ 33,816,339 $ 127,658,740 The accompanying notes are an integral part of these financial statements. -20- City of Moorpark Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2017 Fund balances of governmental funds $ 115,169,345 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. 265,474,327 Revenues and resources reported as unavailable revenue in the governmental funds are recognized in the Statement of Activities.The availability criteria does not apply to the government-wide statements. 6,534,794 Long term liabilities are not due and payable in the current period and,therefore, are not reported in funds: Compensated absences payable (627,796) Net pension liability (2,973,847) Governmental funds report all Other Post Employment Benefits(OPEB)contributions as expenditures, however, in the Statement of Net Position,any excess or deficiencies in contributions in relation to the Annual Required Contribution(ARC)are reported as an asset or liability.The City has contributed more than the required ARC to the retiree medical plan and reports the OPEB obligation as an asset. 604,268 Deferred inflows and outflows of resources related to pensions are not reported in the governmental funds: Net deferred inflows of resources (2,414,523) Net deferred outflows of resources 3,037,579 Net position of governmental activities $ 384,804,147 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, 2017 Special Revenue Street and Assessment General Traffic Safety Districts REVENUES Taxes $ 13,481,150 $ - $ - Licenses and permits 197,765 - - Fines and forfeitures 284,855 -Use of money and property 634,816 40,480 7,919 Charges for services 1,169,170 1,948,398 - Intergovernmental 60,747 - - Maintenance assessments - - 3,015,980 Other revenue 624,858 - 1,621 Total revenues 16,453,361 1,988,878 3,025,520 EXPENDITURES Current: General government 2,770,296 30,300 Public safety 7,275,103 49,885 6,474 Public services 789,922 307,972 363,957 Parks and recreation 1,069,854 - 3,737,287 Streets and roads 137,302 - - Capital outlay 727,777 3,398,288 - Debt service: Interest - - - Total expenditures 12,770,254 3,786,445 4,107,718 Excess(deficiency)of revenues over(under)expenditures 3,683,107 (1,797,567) (1,082,198) OTHER FINANCING SOURCES(USES) Transfers in - - 1,600,896 Transfers out (3,533,216) (1,116) - Total other financing sources(uses) (3,533,216) (1,116) 1,600,896 Net change in fund balances 149,891 (1,798,683) 518,698 Fund balances(deficit), beginning of year 3,020,302 23,123,944 5,111,526 Fund balances(deficit), end of year $ 3,170,193 $ 21,325,261 $ 5,630,224 The accompanying notes are an integral part of these financial statements. _22_ Continued Capital Special Revenue Projects Low-Mod Police Parks/Public Income Community Facilities Facilities Housing Asset Development Endowment Fee $ - $ - $ - $ - $ - - - 1,060,915 - - - - 11,360 - - 688 19,284 (1,272) 101,302 424 1,184,126 - 837,510 1,163,112 140,726 29,179 - - - - 1,213,993 19,284 1,908,513 1,264,414 141,150 - 7,542 - - - - - 896,658 - - - 27,065 1,501,058 123,213 - 49,627 - - - - 1,924,042 - - 1,034,800 - - 23,347 - - - 1,973,669 57,954 2,397,716 1,158,013 - (759,676) (38,670) (489,203) 106,401 141,150 - - 490,276 - - (5,606) - - - - (5,606) - 490,276 - - (765,282) (38,670) 1,073 106,401 141,150 5,845,746 7,717,566 (99) 14,310,167 (1,326,553) $ 5,080,464 $ 7,678,896 $ 974 $ 14,416,568 $ (1,185,403) -23- City of Moorpark Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Continued Year Ended June 30, 2017 Capital Projects Non-major Total Special Governmental Governmental Projects Funds Funds REVENUES Taxes $ - $ 1,335,660 $ 14,816,810 Licenses and permits - - 1,258,680 Fines and forfeitures - 197,392 493,607 Use of money and property (43,649) 3,009 763,001 Charges for services - 2,076,880 8,519,922 Intergovernmental - 2,675,300 2,765,226 Maintenance assessments - - 3,015,980 Other revenue 4,431 143,722 774,632 Total revenues (39,218) 6,431,963 32,407,858 EXPENDITURES Current: General government - 55,067 2,863,205 Public safety - 265,325 8,493,445 Public services - 3,539,343 6,652,530 Parks and recreation - 830,560 5,687,328 Streets and roads - 122,244 259,546 Capital outlay - 3,000,323 10,085,230 Debt service: Interest - - 23,347 Total expenditures - 7,812,862 34,064,631 Excess(deficiency)of revenues over(under)expenditures (39,218) (1,380,899) (1,656,773) OTHER FINANCING SOURCES(USES) Transfers in 1,442,044 428,551 3,961,767 Transfers out (421,829) - (3,961,767) Total other financing sources(uses) 1,020,215 428,551 - Net change in fund balances 980,997 (952,348) (1,656,773) Fund balances(deficit), beginning of year 27,162,429 31,861,090 116,826,118 Fund balances(deficit), end of year $ 28,143,426 $ 30,908,742 $ 115,169,345 The accompanying notes are an integral part of these financial statements. -24- City of Moorpark Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2017 Net change in fund balance-total governmental funds $ (1,656,773) 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. This activity is reconciled as follows: Capital outlays and other capital expenditures $ 9,237,242 Depreciation expense (3,587,363) 5,649,879 Revenues that are measurable but not available are not recorded as revenues under the modified accrual basis of accounting in the governmental funds. 3,812,010 Some expenses reported in the Statement of Activities do not require the use of current financial resources and,therefore,are not reported as expenditures in governmental funds. Increase in compensated absences (27,177) Decrease in OPEB asset (66,500) Pension expense net adjustments (732,861) Change in net position of governmental activities $ 6,978,578 The accompanying notes are an integral part of these financial statements. _25_ City of Moorpark Statement of Fiduciary Net Position June 30, 2017 Successor Agency Private-Purpose Agency Trust Fund Fund ASSETS Cash and investments $ 2,664,010 $ 4,567,425 Cash and investments with fiscal agent 2,071,307 4,940,275 Receivables, net: Accounts - 27,685 Prepaid insurance premium 176,654 - Land held for resale 9,905,743 - Construction in progress 119,736 - Capital assets, net of accumulated depreciation 8,714,713 - Total assets 23,652,163 $ 9,535,385 LIABILITIES Accounts payable 186,616 89,375 General deposits - 4,472,013 Bonds payable - due within one year 835,000 - Bonds payable - due in more than one year 21,540,000 - Amortizable charges- debt related 348,363 - Due to bondholders - 4,973,997 Total liabilities 22,909,979 $ 9,535,385 NET POSITION Held in trust for the Successor Agency $ 742,184 The accompanying notes are an integral part of these financial statements. -26- City of Moorpark Statement of Changes in Fiduciary Net Position Private-Purpose Trust Fund Year Ended June 30, 2017 Successor Agency Private-Purpose Trust Fund ADDITIONS RPTTF distribution $ 2,430,597 Investment earnings 18,549 Total additions 2,449,146 DEDUCTIONS Debt service payments - interest 849,437 Loss on property sold 466,392 Depreciation 205,746 Amortization of deferred charges 450,224 Other payments 1,752,153 Total deductions 3,723,952 Change in net position (1,274,806) Net position, beginning of year 2,016,990 Net position, end of year $ 742,184 The accompanying notes are an integral part of these financial statements. _27_ This page intentionally left blank. City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 NOTEDESCRIPTION PAGE 1 Summary of Significant Accounting Policies 28 2 Cash and Investments 37 3 Notes and Loans Receivable 44 4 Interfund Transactions 46 5 Capital Assets and Depreciation 48 6 Long-Term Liabilities 49 7 Defined Benefit Pension Plan 49 8 Other Post Employment Benefits 57 9 Conduit Debt- Revenue Bonds 59 10 Special Assessment Bonds 60 11 Risk Management 61 12 Classification of Net Position and Fund Balance 64 13 Commitments and Contingencies 67 14 Successor Agency - Private Purpose Trust Fund 68 15 Employees Retirement Plan 70 City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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, 2017. 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. _28_ City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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). _29_ City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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 in regard to inter-fund 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 the qualifications in accordance with the accounting standards. 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 outflows of resources, current liabilities, and deferred inflows of resources are included on the Balance Sheets. -30- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D) Basis of Accounting and Measurement Focus, (continued) Governmental Fund Financial Statements, (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 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 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. -31- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D) Basis of Accounting and Measurement Focus, (continued) Governmental Fund Financial Statements, (continued) 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. 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 reports certain investments at fair value in the balance sheet and recognizes the corresponding change in the fair value of investments in the year in which the change occurred. 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 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 restricted fund balance to indicate that these assets constitute future projects and are restricted resources. The balance at June 30, 2017, was $6,893,496. -32- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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 acquisition 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, 2017, unearned revenue in the Governmental Funds amounted to $300,138. The majority of this amount, $290,138 is for the Metro link North Parking Lot project. Unavailable revenue amounted to $374,862; of which $239,884 represents Transit revenues from the Ventura County Transportation Commission that were not available as of June 30, 2017. The balance for Unavailable revenues of$6,159,932 is related to deferred housing notes and loans receivables. 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, 2017. -33- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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, 2017, 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. -34- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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 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 City Council 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 resources 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. -35- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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) at www.calpers.ca.gov. 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, 2015 Measurement Date (MD) June 30, 2016 Measurement Period (MP) July 1, 2015 to June 30, 2016 -36- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 2) CASH AND INVESTMENTS Cash and investments at June 30, 2017, consisted of the following: City Treasury Deposits Demand Deposits $ 4,605,862 Cash on Hand 1,750 Total City Treasury Deposits 4,607,612 City Treasury Investments Local Agency Investment Fund (LAIF) 3,064,869 Ventura County Pool 21,104,381 Money Market 34,117 Certificates of Deposit-Negotiable 9,480,112 U.S. Treasury Notes 1,004,340 U.S. Agency Securities: Federal National Mortgage Assoc. 28,291,492 Federal Home Loan Bank 24,325,361 Federal Farm Credit Bank 12,151,362 Federal Home Loan Mortgage Corp. 7,064,320 Farmer Mac 4,684,429 Federal Agricultural Mortgage Corp. 1,006,800 Total City Treasury Investments 112,211,583 Cash and Investments With Fiscal Agent Money Market 2,870,552 US Treasury Notes 2,839,100 Medium Term Notes 1,301,930 Total Cash and Investments With Fiscal Agent 7,011,582 Total Cash and Investments $ 123,830,777 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 $ 109,587,760 $ 2,664,010 $ 4,567,425 $ 116,819,195 Cash and investments with fiscal agent - 2,071,307 4,940,275 7,011,582 Total $ 109,587,760 $ 4,735,317 $ 9,507,700 $ 123,830,777 -37- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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 $ 65,000,000 *Excluding amounts held by bond trustees that are not subject to California Government Code restrictions. -38- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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. -39- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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 1to 2 2 to 3 3 to 4 >4 LAIF $ 3,064,869 $ 3,064,869 $ - $ - $ - $ - VenturaCountyPool 21,104381 21,104381 - - -Money Market 34,117 34,117 - - - - CertificatesofDeposit 9480,112 245466 245835 199388 4168391 4,621,032 U.S.Treasury Notes 1,004340 - 1,004340 - - - U.S.Agency Securities: Federal National Mortgage Assoc. 28291,492 5988320 5,034,550 3403,702 7,939260 5925,660 Federal Home Loan Bank 24325361 997,460 5675669 6,071230 3,501385 8,079,617 Federal Farm Credit Bank 12,151362 3,009390 1,004290 4231317 992,620 2913,745 Federal Home Loan Mortgage Corp. 7,064320 2,014,670 2,047,080 3,002,570 -Farmer Mac 4,684429 2,000,000 1506,985 1177,444 - - Federal Agricultural Mortgage Corp. 1,006,800 - - 1,006800 - - Held by bond trustee. Money Market 2,870552 2,870552 - - - - USTreasuryNotes 2,839,100 2,839,100 - - - - Medium Term Notes 1,301,930 - - 673857 - 628,073 $ 119223,165 $ 44,168325 $ 16518749 $ 19,766308 $ 16601,656 $ 22168,127 C) Credit Risk and Concentration of Credit Risk At June 30, 2017, the carrying amount of the City and SARA's deposits with financial institutions was $1,941,852 and $2,664,010, respectively. Bank balances, before reconciling items, were $1,158,920 and $2,664,010, for the City and SARA, respectively, which were 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. -40- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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, 2017, the City and SARA have $1,691,250 and $2,414,010, respectively, in excess of the $250,000 limit of FDIC coverage, respectively. The excess amounts are 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 $ 3,064,869 Not Rated 2.6% Ventura County Pool 21,104,381 AAAf 17.7% Money Market 34,117 AAA 0.0% Certificates of Deposit 9,480,112 AAA 8.0% U.S.Treasury Notes 1,004,340 AA+ 0.8% U.S.Agency Securities: Federal National Mortgage Assoc. 28,291,492 AA+ 23.7% Federal Home Loan Bank 24,325,361 AA+ 20.4% Federal Farm Credit Bank 12,151,362 AA+ 10.2% Federal National Mtg Corp. 7,064,320 AA+ 5.9% Farmer Mac 4,684,429 AA+ 3.9% Federal Agric Mtg Corp. 1,006,800 AA 0.8% Held by bond trustee: Money Market 2,870,552 Not Rated 2.4% US Treasury Notes 2,839,100 AA+ 2.4% Medium Term Notes 1,301,930 AA+ 1.1% $ 119,223,165 100.0% -41- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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 $65,000,000 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, 2017, accounts were maintained in the name of the City for$3,064,869. At June 30, 2017, the fair value of the State of California Pooled Money Investment Account (PMIA) including accrued interest was $78,345,749,000. 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 $21,104,381 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, 2017, 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. F) Fair Value Measurements GASB Statement No. 72, Fair Value Measurements and Application, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs that are observable for an asset or liability, either directly or indirectly, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability. -42- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 2) CASH AND INVESTMENTS, (continued) F) Fair Value Measurements, (continued) The following table presents the balances of the assets measured at fair value on a recurring basis as of June 30, 2017: Investments by Fair Value Level Total Level 1 Level 2 Level 3 Money Market $ 34,117 $ 34,117 $ - $ - Certificates of Deposit 9,480,112 - 9,480,112 - U.S. Treasury Notes 1,004,340 1,004,340 - - U.S.Agency Securities: Federal National Mortgage Assoc. 28,291,492 28,291,492 - - Federal Home Loan Bank 24,325,361 24,325,361 - - Federal Farm Credit Bank 12,151,362 12,151,362 - - Federal National Mtg Corp. 7,064,320 7,064,320 - - Farmer Mac 4,684,429 4,684,429 - - Federal Agric Mtg Corp. 1,006,800 1,006,800 - - Held by bond trustee: Money Market 2,870,552 2,870,552 - - US Treasury Notes 2,839,100 2,839,100 - - Medium Term Notes 1,301,930 - 1,301,930 - Total assets in the fair value hierarchy 95,053,915 $ 84,271,873 $ 10,782,042 $ - Investments measured at the net asset value LAIF 3,064,869 Ventura County Pool 21,104,381 Total investments measured at fair value $ 119,223,165 -43- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 3) NOTES AND LOANS RECEIVABLE Notes and loans receivable activity for the year ended June 30, 2017, is as follows: Beginning Ending Balance Increases Decreases Balance Notes receivable Deferred property assessments $ 433,428 $ 1,880 $ - $ 435,308 Moorpark 20,LP 2,028,170 44,413 - 2,072,583 Walnut 24,LP - 4,725,090 - 4,725,090 Total notes receivable 2,461,598 4,771,383 - 7,232,981 Loans receivable Rehabilitation 13,469 - - 13,469 First-time home buyer assistance-Affordable Housing 7,548 - - 7,548 CalHome 108,659 - - 108,659 Mountain Recreation&Conservation Authority 6,500 - (6,500) - Total loans receivable 136,176 - (6,500) 129,676 Total loans and notes receivable $ 2,597,774 $ 4,771,383 $ (6,500) $ 7,362,657 Balance includes accrued interest separately reported in the financial statements. 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, 2017, the principal balance outstanding is $250,249 and accrued interest of $185,059 for a total balance of $435,308. 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 (M2OLP), 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 M2OLP 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 M2OLP 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, 2017, are $1,176,500 and $196,083 respectively for a total of$1,372,583. -44- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 3) NOTES AND LOANS RECEIVABLE, (continued) B) Moorpark 20, LP Promissory Note, (continued) 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, 2017, are $600,000 and $100,000 respectively for a total of$700,000. The combined amount of principal and accrued interest outstanding at June 30, 2017, is $1,776,500 and $296,083 respectively, for a total of$2,072,583. C) Walnut24, LP Promissory Notes On March 17, 2017 the City signed the Amendment No. 2 to the Disposition and Development Agreement with Walnut24, LP (W24LP), a California limited partnership of Area Housing Authority of the County of Ventura and Many Mansions. The DDA provides for the construction of a 24-unit affordable housing apartment on Housing Successor Agency-owned parcel located at 782 Moorpark Avenue, 798 Moorpark Avenue, 81 Charles Street and 765 Walnut Street (Property). On March 22, 2017, the City and W24LP executed a $3,444,000 loan (Purchase Loan) for the purchase of the Property and will accrue simple interest at the rate of 2.25% per annum and have a term of 32 years. After the City's Permanent Loan has been paid in full, W24LP will begin to make annual payments to the City each year in the amount equal to 50% of the residual receipts. A balloon payment for the remaining balance and accrued interest will be paid to the City at the end of the 32-year term. This loan is subordinate in right of payment to the MUFG Union Bank, N.A., California Community Reinvestment Corporation and Ventura County Housing Trust Fund; and is secured by Deeds of Trust. As of June 30, 2017, the outstanding principal and accrued interest on this note are $3,444,000 and $19,371 respectively for a total of $3,463,371. On the same date, the City and W24LP also signed a $1,250,000 construction to permanent loan (Permanent Loan) which will accrue interest at a rate of 3.75% per annum and have a term of 18 years. Upon conversion of the loan from construction to permanent financing, W24LP will begin to make single annual payment to the City each year for the term of the note to equal 50% of the residual receipts. A balloon payment for the remaining balance and accrued interest will be paid to the City at the end of the 18-year term. This loan is subordinate in right to payment to the MUFG Union Bank, N.A., California Community Reinvestment Corporation, Ventura County Housing Trust Fund and City's Purchase Loan; and is secured by Deeds of Trust. The principal and accrued interest outstanding on this note at June 30, 2017, are $1,250,000 and $11,719 respectively for a total of$1,261,719. D) 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, 2017, was $13,469. -45- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 3) NOTES AND LOANS RECEIVABLE, (continued) E) 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, 2017, was $7,548. 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. F) 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, 2017, was $108,659. 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 $121,072 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. G) Mountains Recreation &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. On June 7, 2017 City Council approved staff's recommendation to forgive the loan on the basis that MRCA provided services in connection with the 2009 appraisal, other City space acquisition efforts including the purchase of 80 acres by the City in 2011 and the formation of the Moorpark Authority. 4) INTERFUND TRANSACTIONS Due to/Due from Due to/due from other funds for the year ending June 30, 2017, consisted of the following: Receivable Fund Payable fund Amount General Fund Non-Major Funds d $ 143,237 Non-Major Funds Non-Major Funds a 30,073 Special Revenues-Endowment Special Revenues-Police Facilities c 1,186,906 Capital Projects-Special Projects Special Revenues-Parks and Public Facilities b 458,855 $ 1,819,071 -46- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 4) INTERFUND TRANSACTIONS, (continued) a. In the Fiscal Year 2005/2006, the Los Angeles A.O.C. Fund advanced to the Tierra Rejada Road/Spring Road A.O.C., $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 $30,073. 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 Quimby fees are collected from new developments. 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 several non-major funds, 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, 2017, consisted of the following: Fund receiving transfers Fund making transfers Amount Special Revenues-Assessm ent Districs General Fund (1) $ 1,600,896 Special Revenues-Comm unity Development General Fund (1) 490,276 Capital Projects-Special Projects General Fund (2) 1,442,044 Non-Major Funds Special Revenues-Streets Traffic and Safety (3) 1,116 Special Revenues-Parks Public Facilities (3) 5,606 Capital Projects-Special Projects (3) 421,829 428,551 Total governmental funds transfers $ 3,961,767 (1)=Transfers made to provide funding for operations. (2)=Transfers made to adjust fund balance to minimum requirement. (3)=Transfers made to provide funding for future equipment replacements. -47- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 5) CAPITAL ASSETS AND DEPRECIATION The City reports all capital assets including infrastructure in the Government-wide Statement of Net position. The City elected to use the basic approach, in accordance with accounting standards, for all infrastructure reporting, whereby depreciation expense and accumulated depreciation have been recorded. The following table presents the capital assets activity for the year ended June 30, 2017: Beginning Ending Balance Additions Deletions Balance Governmental activities: Capital assets,not being depreciated: Land $ 41,966,406 $ 2,449,722 $ (113,800) $ 44,302,328 Land-Rights-of-way 123,302,765 - - 123,302,765 Infrastructure-Roadway system 1,319,348 - - 1,319,348 Construction in progress 12,120,583 8,852,950 (2,155,213) 18,818,320 Total capital assets not being depreciated 178,709,102 11,302,672 (2,269,013) * 187,742,761 Capital assets,being depreciated: Buildings and improvements 39,558,788 - - 39,558,788 Machinery and equipment 7,946,845 203,582 (411,935) 7,738,492 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 144,069,376 203,582 (411,935) * 143,861,023 Less accumulated depreciation/amortization for: Buildings and improvements (13,192,911) (1,107,340) - (14,300,251) Machinery and equipment (4,717,726) (610,844) 411,935 (4,916,635) Infrastructure Roadway system (44,573,474) (1,834,813) - (46,408,287) Storm drain system (382,048) (29,337) - (411,385) Parks system (87,870) (5,029) - (92,899) Total accumulated depreciation (62,954,029) (3,587,363) 411,935 (66,129,457) Total capital assets being depreciated,net 81,115,347 (3,383,781) - 77,731,566 Governmental activities capital assets,net $ 259,824,449 $ 7,918,891 $ (2,269,013) $ 265,474,327 *Certain deletions in the capital assets activity schedule shown above are the result of reclassifications of assets into different classes of assets. If assets that are disposed of are not fully depreciated at the time of the 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 $ 198,132 Public safety 246,684 Public services,including general infrastructure 2,417,647 Parks and recreation 724,900 Total depreciation expense-governmental activities $ 3,587,363 -48- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 6) LONG-TERM LIABILITIES Long-term liability activities for the year ended June 30, 2017, are as follows: Beginning Ending Due within Balance Increases Decreases Balance one year Governmental activities: Net pension liability(see Note 7) $ 1,093,178 $ 1,880,669 $ - $ 2,973,847 $ - Compensated absences 600,619 597,790 (570,613) 627,796 364,614 Governmental activities long-term liabilities $ 1,693,797 $ 2,478,459 $ (570,613) $ 3,601,643 $ 364,614 Employee Compensated Absences The long-term liability at June 30, 2017, is $627,796 for employee compensated absences. The General Fund is primarily expected to liquidate this liability. 7) DEFINED BENEFIT PENSION PLAN A) General Information about the Pension Plan Plan Description All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees' Retirement System (CaIPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors two rate plans (miscellaneous). Benefit provisions under the Plan are established by State statute and the City's resolution. CaIPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CaIPERS' website, at www.cal pers.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 for each plan are applied as specified by the Public Employees' Retirement Law. -49- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 7) DEFINED BENEFIT PENSION PLAN, (continued) A) General Information about the Pension Plan, (continued) Benefits Provided, (continued) The Plan operates under the provisions of the California Public Employees' Retirement Law (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 Plans' authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CaIPERS Board. The Plans' provisions and benefits in effect at June 30, 2017, are summarized as follows: Miscellaneous PEPRA Hire date Prior to On or after January 1,2013 January 1,2013 Benefit formula 2.0%@ 55 2.0%@ 62 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age 50-67+ 52-67+ Monthly benefits,as a%of eligible compensation 1.426%to 2.418% 1.0%to 2.5% Required employee contribution rates 7.00% 6.25% Required employer contribution rates 8.377% 6.555% Contributions Section 20814(c) of the California Public Employees' Retirement Law (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. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2017, were $491,496. The actual employer payments of $457,020 made to CaIPERS by the City during the measurement period ended June 30, 2016, differed from the City's proportionate share of the employer's contributions of $990,554 by ($533,534), which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan. -50- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 7) DEFINED BENEFIT PENSION PLAN, (continued) B) Net Pension Liability The City'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 the Plan is measured as of June 30, 2016, using an annual actuarial valuation as of June 30, 2015 rolled forward to June 30, 2016, using standard update procedures. The City uses the General Fund's available net position to liquidate any net pension obligations. 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 Actuarial Valuation Date June 30, 2015 Measurement Date June 30, 2016 Actuarial Cost Method Entry Age Normal Asset Valuation Method Market Value of Assets Actuarial Assumptions: Discount Rate 7.65% Inflation 2.75% Salary Increases(1) 3.30%- 14.20% Investment Rate of Return(2) 7.65% 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. All other actuarial assumptions used in the June 30, 2015, 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 at www.calpers.ca.gov. Change of Assumptions There were no changes of assumptions. -51- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 7) DEFINED BENEFIT PENSION PLAN, (continued) B) Net Pension Liability, (continued) Discount Rate The discount rate used to measure the total pension liability was 7.65 percent for the 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 7.65 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.65 percent is applied to all plans in the Public Employees Retirement Fund (PERF). 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. 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. 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 (PERF) cash flows. Taking into account historical returns of all the PERF asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B and C funds), 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 equal 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. The target allocation shown was adopted by the Board effective on July 1, 2015. New Strategic Real Return Real Return Asset Class Allocation Years 1 - 101 Years 11+2 Global Equity 51.0% 5.25% 5.71% Global Fixed Income 20.0% 0.99% 2.43% Inflation Sensitive 6.0% 0.45% 3.36% Private Equity 10.0% 6.83% 6.95% Real Estate 10.0% 4.50% 5.13% Infrastructure and Forest Land 2.0% 4.50% 5.09% Liquidity 1.0% (0.55%) (1.05%) Total 100% An expected inflation of 2.5%used for this period 2 An expected inflation of 3.0%used for this period -52- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 7) DEFINED BENEFIT PENSION PLAN, (continued) B) Net Pension Liability, (continued) Pension Plan Fiduciary Net Position Information about the pension plan's 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 plan's fiduciary net position and additions to/deductions from the plan's 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 Other Post- Employment Benefits (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 Plan's 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: 6/30/2015 (VD) $ 27,366,572 $ 26,273,394 $ 1,093,178 Balance at: 6/30/2016 (MD) 29,573,604 26,599,757 2,973,847 Net Changes during 2015-16 $ 2,207,032 $ 326,363 $ 1,880,669 Valuation Date (VD), Measurement Date (MD). -53- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 7) DEFINED BENEFIT PENSION PLAN, (continued) C) Proportionate Share of Net Pension Liability, (continued) The City's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2016, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2015, rolled forward to June 30, 2016, 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 the Plan as of June 30, 2015, and 2016 was as follows: Proportionate Share - June 30, 2015 0.03985% Proportionate Share - June 30, 2016 0.08561% Change - Increase (Decrease) 0.04576% 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 the Plan as of the measurement date, calculated using the discount rate of 7.65 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 (6.65 percent) or 1 percentage-point higher (8.65 percent) than the current rate: Discount Rate - 1% Current Discount Discount Rate + 1% Miscellanous Plan (6.65%) Rate (7.65%) (8.65%) Net Pension Liability(Asset) $ 6,955,375 $ 2,973,847 $ (316,689) Subsequent Events On September 20, 2017, the City Council authorized a $4 million additional payment contribution to CaIPERS to pay down the City's unfunded liability. On September 29, 2017, the City wire transferred the $4 million to CaIPERS. 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. -54- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 7) DEFINED BENEFIT PENSION PLAN, (continued) C) Proportionate Share of Net Pension Liability, (continued) Recognition of Gains and Losses, (continued) 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 2015-16 measurement period is 3.7 years, which was obtained by dividing the total service years of 475,689 (the sum of remaining service lifetimes of the active employees) by 127,009 (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. D) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2015), the net pension liability for the plan was $1,093,178. For the measurement period ending June 30, 2016 (the measurement date), the City incurred a pension expense of$1,224,356 for the Plan. -55- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 7) DEFINED BENEFIT PENSION PLAN, (continued) D) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, (continued) As of June 30, 2017, the City's has deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows Deferred Inflows of Miscellaneous Plan of Resources Resources Differences between Expected and Actual Experience $ 16,275 $ (3,729) Changes of Assumptions - (153,981) Differences between Projected and Actual Investment Earnings 801,418 - Differences between Employer's Contrinutions and Proportionate Share of Contributions 1,533,643 (403,092) Change in Employer's Proportion 194,747 (1,853,721) Pension Contributions Subsequent to Measurement Date 491,496 - Total $ 3,037,579 $ (2,414,523) The amounts above are net of outflows and inflows recognized in the 2015-16 measurement period expense. The $491,496 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 upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows: Measurement Period Ended June 30: Deferred Outflows/(Inflows) of Resources 2017 $ (223,169) 2018 (161,683) 2019 308,836 2020 207,576 2021 - Thereafter - E) Payable to the Pension Plan At June 30, 2017, the City reported a payable of$-0- for the outstanding amount of contributions to the pension plan required for the year then ended. -56- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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, 2016. A menu of benefit provisions as well as other requirements is established by State statute within the Public Employees' Retirement Law. MRHP selects optional benefit provisions from the benefit menu by contract with CaIPERS and adopts those benefits through City resolution. CaIPERS issues a Comprehensive Annual Financial Report (CAFR). The CAFR is issued in aggregate and includes the sum of all CaIPERS plans. Copies of the CaIPERS CAFR may be obtained from the CaIPERS Executive Office, 400 P Street, Sacramento, California 95814. Funding Policy The contribution requirements of plan members and the City are established and may be amended by the Council. The City contributes the Public Employees' Medical and Hospital Care Act (PEMHCA) minimum. The City is required to contribute the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The current ARC rate is 1.64 % of the annual covered payroll. For 2017, the City's annual OPEB cost (expense) was $86,000 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 2017 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) 6/30/2017 $ 86,000 23% $ (604,268) 6/30/2016 83,000 776% (670,768) 6/30/2015 25,000 0% (109,000) -57- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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 2017 was as follows: June 30, 2017 Annual required contribution $ 84,000 Add: Interest on net OPEB obligation (8,000) Amortization of NOO 10,000 Annual OPEB cost(expense) 86,000 Contributions made (19,500) Increase in net OPEB obligation 66,500 Net OPEB obligation (asset) - beginning of year (670,768) Net OPEB obligation (asset) -end of year $ (604,268) Funded Status and Funding Progress The funded status of the plan as of June 30, 2015, the most recent actuarial valuation applicable to 2017, 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. -58- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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, 2017, totaled $12,005,000. 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, 2017, totaled $12,474,299. -59- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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 $1,475,000 mature 2023, was 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 $765,000 at June 30, 2017. 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 $4,305,000 at June 30, 2017. -60- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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 $10,265,000 at June 30, 2017. 11) RISK MANAGEMENT A) Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Moorpark is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 116 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 California JPIA 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. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. -61- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 11) RISK MANAGEMENT (continued) B) Self-Insurance Programs of the Authority, (continued) Liability 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 2016-17 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) $2.5 million annual aggregate deductible in the $3 million in excess of$2 million layer, and (b) $3 million annual aggregate deductible in the $5 million in excess of $10 million layer. There is a third annual aggregate deductible in the amount of$2.5 million in the $5 million in excess of $5 million layer, however it is fully covered under a separate policy and therefore not retained by the Authority. 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 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 2016-17 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. -62- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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 of Moorpark participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Moorpark property is currently insured according to a schedule of covered property submitted by the City of Moorpark to the Authority. City of Moorpark property currently has all-risk property insurance protection in the amount of $52,870,999. There is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible. 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 2016-17. -63- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 12) CLASSIFICATION OF NET POSITION AND FUND BALANCE A) Net position In the Government-wide Financial Statements, net position is classified in the following categories: Net Investment in Capital Assets - This category groups all assets, including infrastructure, into one component of net position. Accumulated depreciation on these assets reduces this category. Restricted Net Position - This category presents external restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Unrestricted Net Position - This category represents the net position of the City that is not externally restricted for any project or other purpose. B) Fund Balance The 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 Resolution is the formal action that would effectively commit fund balances for a particular purpose. The City's governmental fund balances at June 30, 2017, are presented below: Street and Assessment Parks/Public General Traffic Safety Districts Facilities Nonspendable: Prepaid items $ 15,620 $ - Duefromotherfunds 143,237 - - - Restricted for: Public services - 21,325,261 5,630,224 - Recreation services - - - 5,080,464 Public safety - - - - Low and moderate income housing - - - - Committed to: Library services - - - - Assigned to: Capital projects - - - - Unassigned 3,011,336 - - - Total fund balances(deficit) $ 3,170,193 $ 21,325,261 $ 5,630,224 $ 5,080,464 (Continued on next page) -64- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 12) CLASSIFICATION OF NET POSITION AND FUND BALANCE, (continued) B) Fund Balance, (continued) Low-Mod Income Community Police Housing Asset Development Endowment Facilities Fee Nonspendable: Prepaid items $ - $ - $ - $ - Due from other funds - - - - Restricted for: Public services - - - - Recreation services - - - - Public safety - - - - Low and moderate income housing 7,678,896 - - - Committed to: Library services - - - - Assigned to: Capital projects - 974 14,416,568 - Unassigned - - - (1,185,403) Total fund balances(deficit) $ 7,678,896 $ 974 $ 14,416,568 $ (1,185,403) (Continued on next page) -65- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 12) CLASSIFICATION OF NET POSITION AND FUND BALANCE, (continued) B) Fund Balance, (continued) Nonmajor Total Special Governmental Governmental Projects Funds Funds Nonspendable: Prepaid items $ - $ - $ 15,620 Due from other funds - - 143,237 Restricted for: Public services - 13,793,240 40,748,725 Recreation services - 4,316,322 9,396,786 Public safety - 70,279 70,279 Low and moderate income housing - 4,083,904 11,762,800 Committed to: Library services - 847,588 847,588 Assigned to: Capital projects 28,143,426 7,825,445 50,386,413 Unassigned - (28,036) 1,797,897 Total fund balances(deficit) $ 28,143,426 $ 30,908,742 $ 115,169,345 Deficit Fund Balances The following maior governmental funds has a deficit at June 30, 2017: Police Facilities Fee Capital Projects Fund $ (1,185,403) The following non-maior governmental fund has a deficit at June 30, 2017: Tierra Rejada/Spring Road A.O.C. Special Revenue Fund $ (28,036) Management expects these deficits to be eliminated through future revenues. -66- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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 $3,834,656. 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, 2017 (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. -67- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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 2017, named "Low-Mod Income Housing Asset Fund" in the Governmental Funds Financial Statements. -68- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 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, 2017: Beginning Ending Due within Balance Increases Decreases Balance one year Bonds payable: 2006 Tax allocation bonds $ 11455,000 $ - $ (11455,000) $ - $ - 2014 Tax allocation refunding bonds 12,700,000 - (730,000) 11,970,000 750,000 2016 Tax allocation refunding bonds - 10405,000 - 10405,000 85,000 Subtotal bonds payable 24155,000 10405,000 (12,185,000) 22375,000 835,000 Plus/(less)deferred amounts 2006 Bonds discount (222357) - 222,357 - - 2014 Bonds premium 470,478 - (29407) 441,071 - 2016 Bonds discount - (96922) 4214 (92,708) - Successor agency long-term liabilities $ 24403,121 $ 10308,078 $ (11987,836) $ 22,723363 $ 835,000 Combined annual debt service requirements to maturity for all bonds are as follows: Year Ending Principal Interest Total 2018 $ 835,000 $ 713,935 $ 1,548,935 2019 810,000 689,885 1,499,885 2020 685,000 664,635 1,349,635 2021 715,000 637,260 1,352,260 2022 745,000 608,510 1,353,510 2023-2027 4,100,000 2,626,537 6,726,537 2028-2032 4,845,000 1,851,072 6,696,072 2033-2037 6,715,000 953,925 7,668,925 2038-2039 2,925,000 87,675 3,012,675 Total $ 22,375,000 $ 8,833,434 $ 31,208,434 A) 2014 Tax Allocation Refunding 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. As of June 30, 2017, the unpaid principal balance is $11,970,000. -69- City of Moorpark Notes to the Basic Financial Statements Year Ended June 30, 2017 14) SUCCESSOR AGENCY PRIVATE-PURPOSE TRUST FUND TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK (SARA), (continued) LONG TERM DEBT, (continued) B) 2006 Tax Allocation Refunding Bonds In 2006, the Agency issued an $11,695,000 aggregated principal amount of Moorpark Redevelopment Project 2006 Tax Allocation Bonds (2006 Bonds). The purpose of the 2006 Bonds was to finance redevelopment activities related to the Moorpark Redevelopment Project Area. The 2006 Bonds bear interest at rates ranging from 3.625 percent to 4.375 percent per annum, payable semi-annually on April 1 and October 1 of each year, commencing on April 1, 2007, and are subject to mandatory sinking fund redemption commencing on October 1, 2016, and on each October 1 thereafter. The 2006 Bonds are payable from and secured by the tax revenues to be derived from the project area. The 2006 Bonds are secured by all property tax increment revenue, which 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. In July 2016, the Successor Agency issued the 2016 Tax Allocation Refunding Bonds to refund the entire outstanding balance of the 2006 Tax Allocation Bonds series. The refunding resulted in annual savings to the debt service of approximately $200,000. The balance of the refunding debt as of June 30, 2017, is $10,405,000. 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 $ 20,783,997 Total cash flow requirement to service the new debt (16,147,799) Total cash flow difference $ 4,636,198 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 rate of 3.16% $ 13,449,930 Present value of total cash flow requirement to service the new debt discounted at the effective rate of 3.16% (10,140,831) Economic Gain(Loss) in present value at the date of refunding $ 3,309,099 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 $8,378 to the plan. -70- QPa & CAS/,c 0¢ 04Alb2 MOW_„2 7 Wtillibrilit 10. 14 -III a 0 it.--,r2 Va.0 �i -1101.. _Y A AOla TFD a ‘;'l REQUIRED SUPPLEMENTARY INFORMATION City of Moorpark Required Supplementary Information Budgetary Comparison Schedule- Budget and Actual -General Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Property Taxes Current Secured $ 3,450,000 $ 3,450,000 $ 3,527,008 $ 77,008 Current Unsecured 110,000 110,000 109,134 (866) Prior Year Secured-Unsecured 10,000 10,000 5,271 (4,729) Supplemental Secured-Unsecured 50,000 50,000 99,015 49,015 Real Property Transfer Tax 225,000 225,000 287,879 62,879 Homeowners Property Exemption 40,000 40,000 36,846 (3,154) Parcel Tax 345,000 345,000 361,188 16,188 Property Taxes-VLF 3,350,000 3,430,000 3,429,290 (710) Other Property Taxes 300,000 400,000 539,169 139,169 Total Property Taxes 7,880,000 8,060,000 8,394,800 334,800 Sales Taxes Sales and Use Tax 3,800,000 3,800,000 3,854,408 54,408 Total Sales Taxes 3,800,000 3,800,000 3,854,408 54,408 Franchise Fees Franchise Fees 1,288,000 1,133,000 1,120,692 (12,308) PEG Fees 55,000 55,000 44,593 (10,407) Landfill Local Impact Fee 55,000 55,000 56,365 1,365 CIWM P Fees 10,000 10,000 10,292 292 Total Franchise Fees 1,408,000 1,253,000 1,231,942 (21,058) Licenses and Permits Business Registration 125,000 125,000 126,300 1,300 Special Business Permit - - 50 50 Animal Licenses 18,000 18,000 71,415 53,415 Total Licenses and Permits 143,000 143,000 197,765 54,765 (Continued on next page) -71- City of Moorpark Required Supplementary Information Budgetary Comparison Schedule- Budget and Actual -General Fund (continued) Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Fines and Forfeitures Municipal Codes Fines $ 260,000 $ 260,000 $ 284,086 $ 24,086 Animal Control Fines 1,000 1,000 585 (415) Forfeitures and Penalties 1,000 1,001 184 (817) Total Fines and Forfeitures 262,000 262,001 284,855 22,854 Use of Money and Property Investment Earnings 450,000 450,000 35,863 (414,137) Rents and Concessions 394,001 394,001 436,667 42,666 Park and Facility Use Fee 259,000 122,000 162,286 40,286 Total Use of Money and Property 1,103,001 966,001 634,816 (331,185) Charges for Services Other Administrative Services 6,000 6,000 27,912 21,912 Administrative Fees 54,600 54,600 141,422 86,822 Contract Class Registration Fees 270,000 310,000 270,000 (40,000) Public Safety Service Fees 40,000 40,000 93,039 53,039 NPDES Business Inspection Fees 8,000 8,000 9,716 1,716 Film Permit Fees 6,000 6,000 4,200 (1,800) Recreation Events Fees 706,085 706,085 604,312 (101,773) Other Recreation Fees 1,300 1,300 1,932 632 Program Sales 16,000 16,000 7,480 (8,520) Other Community Services Fees 2,500 2,500 7,923 5,423 Photocopying 1,000 1,000 370 (630) Sale of Documents 1,000 1,000 864 (136) Total Charges for Services 1,112,485 1,152,485 1,169,170 16,685 Intergovernmental Motor Vehicle in Lieu 16,000 16,000 16,448 448 Other State Funds - 7,690 6,921 (769) County Grants 40,000 40,000 37,378 (2,622) Total Intergovernmental 56,000 63,690 60,747 (2,943) (Continued on next page) _72_ City of Moorpark Required Supplementary Information Budgetary Comparison Schedule- Budget and Actual -General Fund (continued) Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Other Revenues Contributions-Donations $ 12,000 $ 12,000 $ 4,326 $ (7,674) Revenues not classified elsewhere 10,000 10,000 199,797 189,797 Expense Reimbursements 270,000 271,300 384,691 113,391 Restitutions-Insurance Proceeds 20,000 20,000 35,986 15,986 Cash overage/shortage - - 58 58 Total Other Revenues 312,000 313,300 624,858 311,558 Total revenues 16,076,486 16,013,477 16,453,361 439,884 EXPENDITURES General government 6,468,780 6,865,695 2,770,296 4,095,399 Public safety 7,551,581 7,579,802 7,275,103 304,699 Public services 886,026 887,554 789,922 97,632 Streets& Roads 136,197 136,197 137,302 (1,105) Parks and recreation 1,461,295 1,463,675 1,069,854 393,821 Capital Outlay 94,091 805,093 727,777 77,316 Total expenditures 16,597,970 17,738,016 12,770,254 4,967,762 Excess(deficientcy)of revenues over(under)expenditures (521,484) (1,724,539) 3,683,107 5,407,646 OTHER FINANCING SOURCES(USES) Transfers out (2,966,995) (2,874,759) (3,533,216) (658,457) Total other financing uses (2,966,995) (2,874,759) (3,533,216) (658,457) Net change in fund balance (3,488,479) (4,599,298) 149,891 4,749,189 Fund balance, beginning of year 3,020,302 3,020,302 3,020,302 - Fund balance(deficit), end of year $ (468,177) $ (1,578,996) $ 3,170,193 $ 4,749,189 -73- City of Moorpark Required Supplementary Information Budgetary Comparison Schedule- Budget and Actual -Street and Traffic Safety Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property Investment Earnings $ 255,000 $ 255,000 $ (32,040) $ (287,040) Rents Tenants 39,000 39,000 72,520 33,520 Total Use of Money and Property 294,000 294,000 40,480 (253,520) Charges for Services Other Development Fees 1,336,000 1,336,000 1,948,398 612,398 Total Charges for Services 1,336,000 1,336,000 1,948,398 612,398 Total revenues 1,630,000 1,630,000 1,988,878 358,878 EXPENDITURES General government 32,096 56,824 30,300 26,524 Public safety 50,380 50,380 49,885 495 Public Services 284,700 358,858 307,972 50,886 Capital Outlay 2,871,550 5,342,832 3,398,288 1,944,544 Total expenditures 3,238,726 5,808,894 3,786,445 2,022,449 Excess(deficiency) of revenues over (under) expenditures (1,608,726) (4,178,894) (1,797,567) 2,381,327 OTHER FINANCING SOURCES(USES) Transfers out - (1,116) (1,116) - Total other financing uses - (1,116) (1,116) - Net change in fund balance (1,608,726) (4,180,010) (1,798,683) 2,381,327 Fund balance, beginning of year 23,123,944 23,123,944 23,123,944 - Fund balance, end of year $ 21,515,218 $ 18,943,934 $ 21,325,261 $ 2,381,327 -74- City of Moorpark Required Supplementary Information Budgetary Comparison Schedule- Budget and Actual -Assessment Districts Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property $ 68,100 $ 68,100 $ 7,919 $ (60,181) Maintenance Assessments 2,856,015 2,856,015 3,015,980 159,965 Other Revenues 5,000 5,000 1,621 (3,379) Total revenues 2,929,115 2,929,115 3,025,520 96,405 EXPENDITURES Public safety 12,181 12,181 6,474 5,707 Public Services 396,589 396,589 363,957 32,632 Parks and Recreation 5,273,751 5,453,864 3,737,287 1,716,577 Total expenditures 5,682,521 5,862,634 4,107,718 1,754,916 Excess(deficiency) of revenues over (under) expenditures (2,753,406) (2,933,519) (1,082,198) 1,851,321 OTHER FINANCING SOURCES(USES) Transfers in 2,109,768 2,017,531 1,600,896 (416,635) Total other financing sources 2,109,768 2,017,531 1,600,896 (416,635) Net change in fund balance (643,638) (915,988) 518,698 1,434,686 Fund balance, beginning of year 5,111,526 5,111,526 5,111,526 - Fund balance, end of year $ 4,467,888 $ 4,195,538 $ 5,630,224 $ 1,434,686 -75- City of Moorpark Required Supplementary Information Budgetary Comparison Schedule- Budget and Actual - Parks/Public Facilities Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property $ 71,820 $ 71,820 $ 688 $ (71,132) Charges for Services 759,000 949,000 1,184,126 235,126 Intergovernmental - 29,179 29,179 - Total revenues 830,820 1,049,999 1,213,993 163,994 EXPENDITURES Parks and Recreation 36,100 122,779 49,627 73,152 Capital Outlay 95,500 2,192,425 1,924,042 268,383 Total expenditures 131,600 2,315,204 1,973,669 341,535 Excess (deficiency) of revenues over(under) expenditures 699,220 (1,265,205) (759,676) 505,529 OTHER FINANCING SOURCES(USES) Transfers out - (5,606) (5,606) - Total other financing uses - (5,606) (5,606) - Net change in fund balance 699,220 (1,270,811) (765,282) 505,529 Fund balance, beginning of year 5,845,746 5,845,746 5,845,746 - Fund balance, end of year $ 6,544,966 $ 4,574,935 $ 5,080,464 $ 505,529 -76- City of Moorpark Required Supplementary Information Budgetary Comparison Schedule- Budget and Actual - Low-Mod Income Housing Asset Fund Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property $ 22,800 $ 22,800 $ 19,284 $ (3,516) Total revenues 22,800 22,800 19,284 (3,516) EXPENDITURES General Government 8,100 8,100 7,542 558 Public Services 77,900 53,400 27,065 26,335 Debt Service: Interest - 24,500 23,347 1,153 Total expenditures 86,000 86,000 57,954 28,046 Net change in fund balance (63,200) (63,200) (38,670) 24,530 Fund balance, beginning of year 7,717,566 7,717,566 7,717,566 - Fund balance, end of year $ 7,654,366 $ 7,654,366 $ 7,678,896 $ 24,530 _77_ City of Moorpark Required Supplementary Information Budgetary Comparison Schedule- Budget and Actual -Community Development Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Licenses and Permits $ 692,800 $ 692,800 $ 1,060,915 $ 368,115 Fines and Forfeitures 7,100 7,100 11,360 4,260 Use of Money and Property 5,000 5,000 (1,272) (6,272) Charges for Services 791,500 791,500 837,510 46,010 Total revenues 1,496,400 1,496,400 1,908,513 412,113 EXPENDITURES Public Safety 633,195 633,395 896,658 (263,263) Public Services 1,720,432 1,774,772 1,501,058 273,714 Total expenditures 2,353,627 2,408,167 2,397,716 10,451 Excess (deficiency) of revenues over(under) expenditures (857,227) (911,767) (489,203) 422,564 OTHER FINANCING SOURCES(USES) Transfers in 857,227 857,227 490,276 (366,951) Total other financing sources 857,227 857,227 490,276 (366,951) Net change in fund balance - (54,540) 1,073 55,613 Fund balance (deficit), beginning of year (99) (99) (99) - Fund balance (deficit), end of year $ (99) $ (54,639) $ 974 $ 55,613 _78_ City of Moorpark Required Supplementary Information Budgetary Comparison Schedule- Budget and Actual - Endowment Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property $ 203,000 $ 203,000 $ 101,302 $ (101,698) Charges for Services 742,000 742,000 1,163,112 421,112 Total revenues 945,000 945,000 1,264,414 319,414 EXPENDITURES Public Services 74,700 338,790 123,213 215,577 Capital Outlay 334,827 3,502,627 1,034,800 2,467,827 Total expenditures 409,527 3,841,417 1,158,013 2,683,404 Net change in fund balance 535,473 (2,896,417) 106,401 3,002,818 Fund balance, beginning of year 14,310,167 14,310,167 14,310,167 - Fund balance, end of year $ 14,845,640 $ 11,413,750 $ 14,416,568 $ 3,002,818 _79_ City of Moorpark Required Supplementary Information Other Post-Employment Benefits -Schedule of Funding Progress Year Ended June 30, 2017 Schedule of Funding Progress for MRHP(Amounts in 0001s) Entry Age Unfunded Actuarial Actuarial UAAL as a%of Actuarial Actuarial Value Accrued Liability Accrued Liability Funded Ratio Annual Covered Covered Payroll Valuation Date of Assets(a) (b) (b-a) (a/b) Payroll(c) ((b-a)/c) 6/30/2008 $ - $ 364 $ 364 0.0% $ 4,519 8.1% 6/30/2010 487 590 103 82.5% 5,066 2.0% 6/30/2013 877 863 (14) 101.6% 4,890 -0.3% 6/30/2015 1,217 1,493 276 81.5% 4,950 5.6% _80_ 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, 2017 Fiscal Year End 6/30/2017 6/30/2016 6/30/2015 Measurement Date 6/30/2016 6/30/2015 6/30/2014 Employees Proportion of the Collective Net Pension Liability 0.085610% 0.039850% 0.071195% Employees Proportionate Share of the Collective Net Pension Liability $ 2,973,847 $ 1,093,178 $ 4,430,102 Employees Covered Payroll $ 4,806,765 $ 5,015,277 $ 5,084,665 Employees Proportionate Share of the Collective Net Pension Liability as a Percentage of the Employer's Covered Payroll 61.87% 21.80% 87.13% Pension Plan's Fiduciary Net Position as a Percentage of the Total Pension Liability 89.94% 96.01% 79.82% I Proportion of the collective 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. 2 Covered payroll is defined as the payroll on which contributions to a pension plan are based,in accordance with GASB 82. Measurement period 2013-14(fiscal year 2015)was the 1st year of implementation,therefore,only three years are shown. -81- City of Moorpark Required Supplementary Information Schedule of Plan's Contributions - Last 10 Years* Year Ended June 30, 2017 Fiscal Year Ending 6/30/2017 6/30/2016 6/30/2015 Actuarially Determined Contributions $ 491,496 $ 457,020 $ 547,265 Contributions in Relation to the Actuarilly Determined Contributions 491,496 457,020 4,147,265 Contribution Deficiency(Excess) $ - $ - $ (3,600,000) Employees Covered Payroll' $ 4,806,765 $ 5,015,277 $ 5,084,665 Contributions as a Percentage of Covered Payroll 10.23% 9.11% 81.56% 'Covered payroll is defined as the payroll on which contributions to a pension plan are based,in accordance with GASB 82. Notes to Schedule: Change in Benefit Terms:None. Change in Assumptions:None. *Measurement period 2013-14(fiscal year 2015)was the 1st year of implementation,therefore,only three years are shown. _82_ City of Moorpark Notes to the Required Supplementary Information Year Ended June 30, 2017 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 $14,045,479. This increase resulted primarily from additional appropriations to various construction in progress projects, construction loan and re-budgeted projects and amounts carried over from Fiscal Year 2015/16 as continuing appropriations. Excess of Expenditures over Appropriations Funds with an excess of expenditures over appropriations of $(1,000) or more are presented below, (excesses of less than $(1,000) are considered immaterial for this note disclosure): Final Budget Amount Actual Amount Excess Major Governmental Funds Community Development-Special Revenue Fund Public Safety $ 633,395 $ 896,658 $ (263,263) Non-major Governmental Funds Traffic Safety-Special Revenues Fund General Government - 15,467 (15,467) -83- PaKC4C oQ� o 471.A. �? 2t;' AV.14 !cc � • SUPPLEMENTARY INFORMATION City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Police Facilities Fee Major Capital Projects Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property Investment Earnings $ - $ - $ 424 $ 424 Total Use of Money and Property - - 424 424 Charges for Services Police Facilities Fee 105,000 105,000 140,726 35,726 Total Maintenance Assesment 105,000 105,000 140,726 35,726 Total revenues 105,000 105,000 141,150 36,150 EXPENDITURES Total expenditures - - - - Net change in fund balance 105,000 105,000 141,150 36,150 Fund balance(deficit), beginning of year (1,326,553) (1,326,553) (1,326,553) - Fund balance(deficit), end of year $ (1,221,553) $ (1,221,553) $ (1,185,403) $ 36,150 -84- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual—Special Projects Major Capital Projects Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property Investment Earnings $ - $ - $ (43,649) $ (43,649) Total Use of Money and Property - - (43,649) (43,649) Other Revenue Loan Interest - - 4,431 4,431 Total Other Revenue - - 4,431 4,431 Total revenues - - (39,218) (39,218) EXPENDITURES Total expenditures - - - - Excess(deficiency)of revenues over expenditures - - (39,218) (39,218) OTHER FINANCING SOURCES(USES) Transfers in - - 1,442,044 1,442,044 Transfers out - (421,829) (421,829) - Total other financing sources(uses) - (421,829) 1,020,215 1,442,044 Net change in fund balance - (421,829) 980,997 1,402,826 Fund balance, beginning of year 27,162,429 27,162,429 27,162,429 - Fund balance, end of year $ 27,162,429 $ 26,740,600 $ 28,143,426 $ 1,402,826 -85- City of Moorpark Non-Major Governmental Funds June 30, 2017 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. City Affordable Housing Fund - 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. 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. Los Angeles A.O.0 Fund - is used to account for the financial resources for capital projects related to streets and other improvements within the Los Angeles project area. Sources of revenue are development fees. Freemount 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. 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. 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. Prop 1B Local Streets and Roads 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 for specified purposes, such as public transit and passenger rail improvements and local street and road improvements. 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. -86- City of Moorpark Non-Major Governmental Funds (continued) June 30, 2017 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. 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. _87_ City of Moorpark Non-Major Governmental Funds Combining Balance Sheet June 30, 2017 Special Revenue City Library Traffic Affordable Services Safety Housing ASSETS Cash and investments $ 911,252 $ 62,923 $ 3,499,137 Receivables: Accounts 1,654 29,527 7,899 Interest - - 11,718 Notes and loans - - 1,366,207 Due from other funds - - - Property held for resale - - 577,348 Total assets $ 912,906 $ 92,450 $ 5,462,309 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 65,307 $ 22,171 $ 480 Due to other funds - -Unearned revenues - - - Total liabilities 65,307 22,171 480 Deferred inflows of resources: Unavailable revenues 11 - 1,377,925 Total deferred inflows of resources 11 - 1,377,925 Fund balances: Restricted - 70,279 4,083,904 Committed 847,588 - - Assigned - - - Unassigned - - - Total fund balances (deficit) 847,588 70,279 4,083,904 Total liabilities, deferred inflows of resources and fund balances $ 912,906 $ 92,450 $ 5,462,309 -88- Continued Special Revenue Tierra Rejada/ Casey/Gabbert Freemount Spring Road Road Los Angeles Storm Drain A.O.C. A.O.C. A.O.C. A.O.C. $ 1,767 $ 96,785 $ 10,313,286 $ 16,204 270 176 18,591 29 185,059 - - - 250,249 - - - 30,073 - $ 2,037 $ 96,961 $ 10,797,258 $ 16,233 $ - $ - $ 139,591 $ - 30,073 - - - 30,073 - 139,591 - - 435,308 - - 435,308 - - 96,961 10,222,359 16,233 (28,036) - - - (28,036) 96,961 10,222,359 16,233 $ 2,037 $ 96,961 $ 10,797,258 $ 16,233 _89_ City of Moorpark Non-Major Governmental Funds Combining Balance Sheet June 30, 2017 Special Revenue Art State and State Gas in Public Federal Tax Places Assistance ASSETS Cash and investments $ 1,033,118 $ 4,308,501 $ 1,328,659 Receivables: Accounts 1,844 7,821 6,793 Interest - - - Notes and loans - - - Due from other funds - - - Property held for resale - - - Total assets $ 1,034,962 $ 4,316,322 $ 1,335,452 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 1,576 $ - $ 19,197 Due to other funds - - 87,774 Unearned revenues - - - Total liabilities 1,576 - 106,971 Deferred inflows of resources: Unavailable revenues - - 4,984 Total deferred inflows of resources - - 4,984 Fund balances: Restricted 1,033,386 4,316,322 1,223,497 Committed - - - Assigned - - - Unassigned - - - Total fund balances (deficit) 1,033,386 4,316,322 1,223,497 Total liabilities, deferred inflows of resources and fund balances $ 1,034,962 $ 4,316,322 $ 1,335,452 -90- Continued Special Revenue Total Local Prop 1B Transportation Local Streets Solid Special Transit and Roads Waste Revenue $ 188,307 $ 323,023 $ 1,123,136 $ 23,206,098 245,843 586 30,834 351,867 - - - 196,777 - - - 1,616,456 - - - 30,073 - - - 577,348 $ 434,150 $ 323,609 $ 1,153,970 $ 25,978,619 $ 103,605 $ 337 $ 21,497 $ 373,761 55,464 - - 173,311 - 290,138 - 290,138 159,069 290,475 21,497 837,210 239,884 - - 2,058,112 239,884 - - 2,058,112 35,197 33,134 1,132,473 22,263,745 - - - 847,588 - - - (28,036) 35,197 33,134 1,132,473 23,083,297 $ 434,150 $ 323,609 $ 1,153,970 $ 25,978,619 -91- City of Moorpark Non-Major Governmental Funds Combining Balance Sheet June 30, 2017 Capital Projects Capital City Hall Equipment Projects Building Replacement ASSETS Cash and investments $ 784,512 $ 3,711,809 $ 3,327,190 Receivables: Accounts 1,429 6,742 6,038 Interest - - - Notes and loans - -Due from other funds - - - Property held for resale - - - Total assets $ 785,941 $ 3,718,551 $ 3,333,228 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ 5,097 $ 7,178 Due to other funds - -Unearned revenues - - - Total liabilities - 5,097 7,178 Deferred inflows of resources: Unavailable revenues - - - Total deferred inflows of resources - - - Fund balances: Restricted - - - Committed - - - Assigned 785,941 3,713,454 3,326,050 Unassigned - - - Total fund balances (deficit) 785,941 3,713,454 3,326,050 Total liabilities, deferred inflows of resources and fund balances $ 785,941 $ 3,718,551 $ 3,333,228 _92_ Continued Total Total Capital NonMajor Projects Governmental Funds Funds $ 7,823,511 $ 31,029,609 14,209 366,076 196,777 1,616,456 30,073 577,348 $ 7,837,720 $ 33,816,339 $ 12,275 $ 386,036 173,311 290,138 12,275 849,485 2,058,112 2,058,112 22,263,745 847,588 7,825,445 7,825,445 (28,036) 7,825,445 30,908,742 $ 7,837,720 $ 33,816,339 -93- City of Moorpark Non-Major Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Year Ended June 30, 2017 Special Revenue City Library Traffic Affordable Services Safety Housing REVENUES Taxes $ 938,169 $ - $ - Fines and forfeitures 15,555 181,837 Use of money and property 497 (1,590) (11,369) Charges for services 4,826 - 390,451 Intergovernmental - - - Other revenue 7,718 2,130 - Total revenues 966,765 182,377 379,082 EXPENDITURES Current: General government 39,580 15,467 - Public safety - 141,956 18,681 Public services - - 1,466,339 Parks and recreation 815,782 - - Street and roads - 122,244 - Capital outlay - - - Total expenditures 855,362 279,667 1,485,020 Excess (deficiency) of revenues over (under) expenditures 111,403 (97,290) (1,105,938) OTHER FINANCING SOURCES(USES) Transfers in - - - Total other financing sources - - - Net change in fund balances 111,403 (97,290) (1,105,938) Fund balances (deficit), beginning of year 736,185 167,569 5,189,842 Fund balances (deficit), end of year $ 847,588 $ 70,279 $ 4,083,904 -94- Continued Special Revenue Tierra Rejada/ Casey/Gabbert Freemount Spring Road Road Los Angeles Storm Drain A.O.C. A.O.C. A.O.C. A.O.C. $ $ $ $ 2,037 (109) 11,787 - 146,933 - 675,146 - 148,970 (109) 686,933 - 20 2,323,471 - 2,323,471 20 148,970 (109) (1,636,538) (20) 148,970 (109) (1,636,538) (20) (177,006) 97,070 11,858,897 16,253 $ (28,036) $ 96,961 $ 10,222,359 $ 16,233 -95- City of Moorpark Non-Major Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Year Ended June 30, 2017 Special Revenue Art State and State in Public Federal Gas Tax Places Assistance REVENUES Taxes - Fines and forfeitures - -Use of money and property (844) 2,026 1,673 Charges for services - 447,194 34 Intergovernmental 707,228 - 1,395,982 Other revenue 7,832 - - Total revenues 714,216 449,220 1,397,689 EXPENDITURES Current: General government - - - Public safety - - 104,688 Public services 635,570 - 386,988 Parks and recreation - 14,778 - Street and roads - - - Capital outlay - 12,234 574,656 Total expenditures 635,570 27,012 1,066,332 Excess (deficiency) of revenues over(under) expenditures 78,646 422,208 331,357 OTHER FINANCING SOURCES(USES) Transfers in - - - Total other financing sources - - - Net change in fund balances 78,646 422,208 331,357 Fund balances (deficit), beginning of year 954,740 3,894,114 892,140 Fund balances (deficit), end of year $ 1,033,386 $ 4,316,322 $ 1,223,497 -96- Continued Special Revenue Total Local Prop 1B Special Transportation Local Streets Solid Revenue Transit and Roads Waste Funds $ - $ - $ 318 $ 938A87 197,392 (878) (6,069) (96) (2,935) 63,124 - 349,172 2,076,880 530,114 22,635 19,341 2,675,300 126,042 - - 143,722 718,402 16,566 368,735 6,028,846 55,067 265,325 768,222 - 282,224 3,539,343 830,560 122,244 22,635 - 2,932,996 768,222 22,635 282,224 7,745,535 (49,820) (6,069) 86,511 (1,716,689) (49,820) (6,069) 86,511 (1,716,689) 85,017 39,203 1,045,962 24,799,986 $ 35,197 $ 33,134 $ 1,132,473 $ 23,083,297 _97_ City of Moorpark Non-Major Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Year Ended June 30, 2017 Capital Projects Capital City Hall Equipment Projects Building Replacement REVENUES Taxes $ 397,173 $ - $ - Fines and forfeitures - -Use of money and property 5,051 (4,272) 5,165 Charges for services - -Intergovernmental - - - Other revenue - - - Total revenues 402,224 (4,272) 5,165 EXPENDITURES Current: General government - - - Public safety - - - Public services - - - Parks and recreation - - - Street and roads - - - Capital outlay 2,800 25,703 38,824 Total expenditures 2,800 25,703 38,824 Excess (deficiency) of revenues over (under) expenditures 399,424 (29,975) (33,659) OTHER FINANCING SOURCES (USES) Transfers in - - 428,551 Total other financing sources - - 428,551 Net change in fund balances 399,424 (29,975) 394,892 Fund balances (deficit), beginning of year 386,517 3,743,429 2,931,158 Fund balances (deficit), end of year $ 785,941 $ 3,713,454 $ 3,326,050 _98_ Continued Total Total Capital Nonmajor Projects Governmental Funds Funds $ 397,173 $ 1,335,660 197,392 5,944 3,009 2,076,880 2,675,300 143,722 403,117 6,431,963 55,067 265,325 3,539,343 830,560 122,244 67,327 3,000,323 67,327 7,812,862 335,790 (1,380,899) 428,551 428,551 428,551 428,551 764,341 (952,348) 7,061,104 31,861,090 $ 7,825,445 $ 30,908,742 -99- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Library Services Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Taxes $ 875,000 $ 900,000 $ 938,169 $ 38,169 Fines and forfeitures 25,000 25,000 15,555 (9,445) Use of money and property 28,000 28,000 497 (27,503) Charges for services 5,000 5,000 4,826 (174) Other revenue - - 7,718 7,718 Total revenues 933,000 958,000 966,765 8,765 EXPENDITURES Current: General Government 75,638 75,638 39,580 36,058 Parks and recreation 868,302 872,399 815,782 56,617 Total expenditures 943,940 948,037 855,362 92,675 Net change in fund balance (10,940) 9,963 111,403 101,440 Fund balance, beginning of year 736,185 736,185 736,185 - Fund balance, end of year $ 725,245 $ 746,148 $ 847,588 $ 101,440 -100- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Traffic Safety Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Fines and forfeitures $ 150,000 $ 150,000 $ 181,837 $ 31,837 Use of money and property - - (1,590) (1,590) Other revenue 5,000 5,000 2,130 (2,870) Total revenues 155,000 155,000 182,377 27,377 EXPENDITURES General government - - 15,467 (15,467) Public safety 164,562 164,562 141,956 22,606 Street and roads 114,854 129,854 122,244 7,610 Total expenditures 279,416 294,416 279,667 14,749 Net change in fund balance (124,416) (139,416) (97,290) 42,126 Fund balance, beginning of year 167,569 167,569 167,569 - Fund balance, end of year $ 43,153 $ 28,153 $ 70,279 $ 42,126 -101- 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, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 56,000 $ 56,000 $ (11,369) $ (67,369) Charges for services 273,500 273,500 390,451 116,951 Total revenues 329,500 329,500 379,082 49,582 EXPENDITURES Public safety 20,013 20,013 18,681 1,332 Public services 265,185 1,527,685 1,466,339 61,346 Capital outlay 400,000 1,985,340 - 1,985,340 Total expenditures 685,198 3,533,038 1,485,020 2,048,018 Net change in fund balance (355,698) (3,203,538) (1,105,938) 2,097,600 Fund balance, beginning of year 5,189,842 5,189,842 5,189,842 - Fund balance, end of year $ 4,834,144 $ 1,986,304 $ 4,083,904 $ 2,097,600 -102- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Tierra Rejada/Spring Road A.O.C. Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ - $ - $ 2,037 $ 2,037 Charges for services 256,000 256,000 146,933 (109,067) Total revenues 256,000 256,000 148,970 (107,030) EXPENDITURES Total expenditures - - - - Net change in fund balance 256,000 256,000 148,970 (107,030) Fund balance (deficit), beginning of year (177,006) (177,006) (177,006) - Fund balance (deficit), end of year $ 78,994 $ 78,994 $ (28,036) $ (107,030) -103- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Casey/Gabbert Road A.O.C. Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 1,000 $ 1,000 $ (109) $ (1,109) Total revenues 1,000 1,000 (109) (1,109) EXPENDITURES General government - - - - Total expenditures - - - - Net change in fund balance 1,000 1,000 (109) (1,109) Fund balance, beginning of year 97,070 97,070 97,070 - Fund balance, end of year $ 98,070 $ 98,070 $ 96,961 $ (1,109) -104- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Los Angeles A.O.C. Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of Money and Property Investment Earnings $ 218,000 $ 218,000 $ 11,787 $ (206,213) Total Use of Money and Property 218,000 218,000 11,787 (206,213) Charges for Services Area of Contribution Fee 391,000 391,000 675,146 284,146 Total Charges for Services 391,000 391,000 675,146 284,146 Total revenues 609,000 609,000 686,933 77,933 EXPENDITURES Capital outlay 10,951,629 10,934,084 2,323,471 8,610,613 Total expenditures 10,951,629 10,934,084 2,323,471 8,610,613 Net change in fund balance (10,342,629) (10,325,084) (1,636,538) 8,688,546 Fund balance, beginning of year 11,858,897 11,858,897 11,858,897 - Fund balance, end of year $ 1,516,268 $ 1,533,813 $ 10,222,359 $ 8,688,546 -105- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Freemount Storm Drain A.O.C. Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 100 $ 100 $ - $ (100) Total revenues 100 100 - (100) EXPENDITURES General government - - 20 (20) Total expenditures - - 20 (20) Net change in fund balance 100 100 (20) (120) Fund balance, beginning of year 16,253 16,253 16,253 - Fund balance, end of year $ 16,353 $ 16,353 $ 16,233 $ (120) -106- 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, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 15,000 $ 15,000 $ (844) $ (15,844) Intergovernmental 737,000 737,000 707,228 (29,772) Other revenue - - 7,832 7,832 Total revenues 752,000 752,000 714,216 (37,784) EXPENDITURES Public services 1,324,602 1,328,117 635,570 692,547 Total expenditures 1,324,602 1,328,117 635,570 692,547 Net change in fund balance (572,602) (576,117) 78,646 654,763 Fund balance, beginning of year 954,740 954,740 954,740 - Fund balance, end of year $ 382,138 $ 378,623 $ 1,033,386 $ 654,763 -107- 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, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 35,000 $ 35,000 $ 2,026 $ (32,974) Charges for services 234,000 234,000 447,194 213,194 Total revenues 269,000 269,000 449,220 180,220 EXPENDITURES Parks and recreation 16,048 16,048 14,778 1,270 Capital outlay 149,900 149,914 12,234 137,680 Total expenditures 165,948 165,962 27,012 138,950 Net change in fund balance 103,052 103,038 422,208 319,170 Fund balance, beginning of year 3,894,114 3,894,114 3,894,114 - Fund balance, end of year $ 3,997,166 $ 3,997,152 $ 4,316,322 $ 319,170 -108- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -State and Federal Assistance Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 10,000 $ 10,000 $ 1,673 $ (8,327) Charges for services - - 34 34 Intergovernmental 4,284,049 4,996,049 1,395,982 (3,600,067) Total revenues 4,294,049 5,006,049 1,397,689 (3,608,360) EXPENDITURES Public safety 108,000 108,000 104,688 3,312 Public services 538,010 591,879 386,988 204,891 Capital outlay 3,445,489 4,052,318 574,656 3,477,662 Total expenditures 4,091,499 4,752,197 1,066,332 3,685,865 Net change in fund balance 202,550 253,852 331,357 77,505 Fund balance, beginning of year 892,140 892,140 892,140 - Fund balance, end of year $ 1,094,690 $ 1,145,992 $ 1,223,497 $ 77,505 -109- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Local Transportation Transit Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 2,000 $ 2,000 $ (878) $ (2,878) Charges for services 69,000 69,000 63,124 (5,876) Intergovernmental 1,033,777 853,777 530,114 (323,663) Other revenue - - 126,042 126,042 Total revenues 1,104,777 924,777 718,402 (206,375) EXPENDITURES Public services 1,019,471 1,330,863 768,222 562,641 Total expenditures 1,019,471 1,330,863 768,222 562,641 Net change in fund balance 85,306 (406,086) (49,820) 356,266 Fund balance, beginning of year 85,017 85,017 85,017 - Fund balance (deficit), end of year $ 170,323 $ (321,069) $ 35,197 $ 356,266 -110- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Prop 1B Local Streets and Roads Special Revenue Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ - $ - $ (6,069) $ (6,069) Intergovernmental - - 22,635 22,635 Total revenues - - 16,566 16,566 EXPENDITURES Capital outlay 168,037 322,773 22,635 300,138 Total expenditures 168,037 322,773 22,635 300,138 Net change in fund balance (168,037) (322,773) (6,069) 316,704 Fund balance, beginning of year 39,203 39,203 39,203 - Fund balance (deficit), end of year $ (128,834) $ (283,570) $ 33,134 $ 316,704 -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, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Taxes $ - $ - $ 318 $ 318 Use of money and property 15,000 15,000 (96) (15,096) Charges for services 307,000 307,000 349,172 42,172 Intergovernmental 20,000 20,000 19,341 (659) Total revenues 342,000 342,000 368,735 26,735 EXPENDITURES Public services 302,687 347,687 282,224 65,463 Total expenditures 302,687 347,687 282,224 65,463 Net change in fund balance 39,313 (5,687) 86,511 92,198 Fund balance, beginning of year 1,045,962 1,045,962 1,045,962 - Fund balance, end of year $1,085,275 $1,040,275 $1,132,473 $ 92,198 -112- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -Capital Projects Capital Projects Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Taxes $ - $ - $ 397,173 $ 397,173 Use of money and property 2,000 2,000 5,051 3,051 Total revenues 2,000 2,000 402,224 400,224 EXPENDITURES Capital outlay 175,000 174,950 2,800 172,150 Total expenditures 175,000 174,950 2,800 172,150 Net change in fund balance (173,000) (172,950) 399,424 572,374 Fund balance, beginning of year 386,517 386,517 386,517 - Fund balance, end of year $ 213,517 $ 213,567 $ 785,941 $ 572,374 -113- 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, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 55,000 $ 55,000 $ (4,272) $ (59,272) Total revenues 55,000 55,000 (4,272) (59,272) EXPENDITURES Capital outlay 3,317,716 3,388,702 25,703 3,362,999 Total expenditures 3,317,716 3,388,702 25,703 3,362,999 Net change in fund balance (3,262,716) (3,333,702) (29,975) 3,303,727 Fund balance, beginning of year 3,743,429 3,743,429 3,743,429 - Fund balance, end of year $ 480,713 $ 409,727 $ 3,713,454 $ 3,303,727 -114- City of Moorpark Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Equipment Replacement Capital Projects Fund Year Ended June 30, 2017 Budget Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property $ 30,000 $ 30,000 $ 5,165 $ (24,835) Total revenues 30,000 30,000 5,165 (24,835) EXPENDITURES Capital outlay 62,500 97,175 38,824 58,351 Total expenditures 62,500 97,175 38,824 58,351 Excess (deficiency) of revenues over(under) expenditures (32,500) (67,175) (33,659) 33,516 OTHER FINANCING SOURCES(USES) Transfers in - 428,551 428,551 - Total other financing sources - 428,551 428,551 - Net change in fund balance (32,500) 361,376 394,892 33,516 Fund balance, beginning of year 2,931,158 2,931,158 2,931,158 - Fund balance, end of year $ 2,898,658 $ 3,292,534 $ 3,326,050 $ 33,516 -115- City of Moorpark Statement of Changes in Fiduciary Asset and Liabilities -Agency Funds Year Ended June 30, 2017 Balance Balance June 30, 2016 Additions Deletions June 30, 2017 General Trust Assets Cash and investments $ 4,579,000 $ 3,336,119 $ (3,347,694) $ 4,567,425 Cash and investments with fiscal agent 4,807,733 2,499,790 (2,367,248) 4,940,275 Accounts receivable, net 112 28,817 (1,244) 27,685 Total assets $ 9,386,845 $ 5,864,726 $ (5,716,186) $ 9,535,385 Liabilities Accounts payable $ 95,051 $ 462,308 $ (467,984) $ 89,375 General deposits 4,484,061 881,804 (893,852) 4,472,013 Due to bondholders 4,807,733 5,093,659 (4,927,395) 4,973,997 Total liabilities $ 9,386,845 $ 6,437,771 $ (6,289,231) $ 9,535,385 -116- QPaK Cq4�,� Apper 4� O 4.p �`2 4%407 AFSe. M.. , VO:r2 i Air :ig tt, i r. STATISTICAL SECTION This page intentionally left blank. City of Moorpark Overview of Statistical Section Year Ended June 30, 2017 Statistical Section This part of the City of Moorpark comprehensive annual financial report presents detailed information regarding five categories: financial trends, revenue capacity, debt 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) 2008 2009 2010 2011 2012 Governmental activities: Net investment in capital assets $ 130,071,108 $ 130,581,499 $ 141,095,551 $ 145,841,042 $ 139,795,930 Restricted 101,613,368 94,878,693 91,504,803 72,654,599 87,274,980 Unrestricted 3,641,173 14,213,503 15,828,208 13,402,969 7,909,301 Total governmental activities net position $235,325,649 $239,673,695 $248,428,562 $231,898,610 $234,980,211 The City of Moorpark does not have any business-type activities. Source: City of Moorpark CAFR. -117- City of Moorpark Net Position by Component Last Ten Fiscal Years (continued) (Accrual basis of accounting) 2013 2014 2015 2016 2017 Governmental activities: Net investment in capital assets $262,271,564 $259,798,991 $260,051,061 $259,824,449 $265,474,327 Restricted 82,125,331 85,872,675 89,500,647 94,421,242 95,443,371 Unrestricted 10,042,168 15,655,932 22,642,705 23,579,878 23,886,449 Total governmental activities net position $354,439,063 $361,327,598 $372,194,413 $377,825,569 $384,804,147 -118- City of Moorpark Changes in Net Position Last Ten Fiscal Years (Accrual basis of accounting) 2008 2009 2010 2011 2012 Expenses: General government $ 1,949,206 $ 2,041,596 $ 1,603,279 $ 3,201,184 $ 2,217,953 Public safety 6,882,072 7,035,384 7,016,015 7,070,049 6,158,455 Public services 20,580,204 18,170,325 13,589,878 31,775,462 11,124,523 Parks and recreation 4,551,045 4,470,524 4,934,002 4,658,717 5,704,208 Streets and roads - - - - - Interest on long-term debt 1,773,841 1,616,843 1,504,502 1,492,604 354,412 Total governmental activities expenses 35,736,368 33,334,672 28,647,676 48,198,016 25,559,551 Program revenues: Charges for services: General government 283,576 232,926 258,431 293,008 407,883 Public safety 633,131 538,636 477,305 492,847 445,642 Public services 5,743,200 3,172,708 2,769,641 2,473,770 1,988,453 Parks and recreation 756,885 644,979 643,593 697,787 858,333 Total charges for services 7,416,792 4,589,249 4,148,970 3,957,412 3,700,311 Operating contributions and grants 7,113,883 6,172,315 4,128,842 5,999,168 3,702,582 Capital contributions and grants 5,481,972 3,326,778 1,970,931 1,703,076 2,106,706 Total governmental activities program revenues 20,012,647 14,088,342 10,248,743 11,659,656 9,509,599 Net program revenues(expenses) (15,723,721) (19,246,330) (18,398,933) (36,538,360) (16,049,952) General revenues and other changes in net position: Taxes: Property tax 4,505,980 7,802,643 7,449,063 7,287,282 6,943,275 Property tax, Redevelopment Agency 6,887,079 7,054,432 6,864,777 6,755,960 3,389,064 Franchise tax 1,150,180 1,171,556 1,171,825 1,207,778 1,231,741 Sales tax 2,306,281 2,329,522 2,382,010 2,577,105 2,622,419 Sales tax in lieu 779,263 849,227 588,635 940,791 857,217 Motor vehicle in lieu 3,038,440 125,307 109,136 170,592 18,590 Investment income 2,491,856 2,875,649 853,074 856,413 1,206,622 Contributed Capital - - - - 663,818 Other 139,728 386,040 283,372 212,487 245,235 Gain on sale of property - - - - - County settlement - 1,000,000 - - - Extraordinary item-Gain on Dissolution - - - - 356,845 Total governmental activities 21,298,807 23,594,376 19,701,892 20,008,408 17,534,826 Changes in net position- governmental activities $ 5,575,086 $ 4,348,046 $ 1,302,959 $ (16,529,952) $ 1,484,874 Source: City of Moorpark CAFR. -119- City of Moorpark Changes in Net Position Last Ten Fiscal Years (continued) (Accrual basis of accounting) 2013 2014 2015 2016 2017 Expenses: General government $ 4,149,965 $ 2,169,069 $ 1,212,685 $ 795,772 $ 3,336,050 Public safety 6,550,936 6,882,753 7,024,242 7,614,298 9,302,239 Public services 9,948,865 11,779,873 11,558,575 12,162,933 9,513,380 Parks and recreation 5,755,528 6,026,182 5,614,080 7,117,157 6,791,321 Streets and roads - - - - 274,954 Interest on long-term debt - - - - 23,347 Total governmental activities expenses 26,405,294 26,857,877 25,409,582 27,868,670 29,241,291 Program revenues: Charges for services: General government 587,915 1,474,249 1,463,859 685,537 960,934 Public safety 809,257 2,657,332 3,325,404 1,970,207 2,623,885 Public services 4,154,598 7,815,032 10,471,498 5,026,698 6,499,441 Parks and recreation 973,761 1,913,045 3,119,649 2,378,698 3,810,319 Total charges for services 6,525,531 13,859,658 18,380,410 10,061,140 13,894,579 Operating contributions and grants 3,533,608 4,364,461 4,049,606 3,943,429 6,021,546 Capital contributions and grants 1,879,634 2,010,143 4,636,843 2,014,302 993,530 Total governmental activities program revenues 11,938,773 20,234,262 27,066,859 16,018,871 20,909,655 Net program revenues(expenses) (14,466,521) (6,623,615) 1,657,277 (11,671,289) (8,331,636) General revenues and other changes in net position: Taxes: Property tax 6,776,729 6,841,765 7,638,300 7,923,937 9,332,969 Property tax, Redevelopment Agency - - - - - Franchise tax 1,222,956 1,222,759 1,284,268 1,276,932 1,559,634 Sales tax 2,730,871 2,695,884 2,749,320 3,316,402 3,854,408 Sales tax in lieu 875,160 1,089,362 896,527 730,083 - Motor vehicle in lieu 19,262 15,942 15,399 - - Investment income 142,222 1,153,683 1,116,545 2,447,983 347,582 Contributed Capital - - - - - Other 299,730 492,755 685,569 1,607,108 215,621 Gain on sale of property - - - - - County settlement - - - - - Extraordinary item-Gain on Dissolution - - - - - Total governmental activities 12,066,930 13,512,150 14,385,928 17,302,445 15,310,214 Changes in net position- governmental activities $ (2,399,591) $ 6,888,535 $16,043,205 $ 5,631,156 $ 6,978,578 -120- City of Moorpark Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) 2008 2009 2010 2011 2012 General fund: Reserved $ 95,397 $ 373,209 $ 337,286 $ - $ - Unreserved 3,625,348 2,832,620 2,662,713 - - Nonspendable - - - 220,976 1,275,022 Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - - - 2,779,024 2,999,000 Total general fund $ 3,720,745 $ 3,205,829 $ 2,999,999 $ 3,000,000 $ 4,274,022 All other governmental funds: Reserved $ 35,103,620 $ 33,719,016 $ 38,208,807 $ - $ - Unreserved, reported in: Special revenue funds 42,761,089 37,278,628 32,207,690 - - Capital projects funds 39,098,065 35,699,829 33,735,939 - - DebtServicefunds (1,025,927) 261,336 294,202 - - Non-major funds 13,384,413 25,043,397 25,335,288 - - Fund Balances: Nonspendable - - - 14,862,594 3,055,064 Restricted - - - 66,565,551 55,945,095 Committed - - - 795,208 783,281 Assigned - - - 28,849,138 30,892,276 Unassigned - - - (2,124,660) (2,047,164) Total all other governmental funds $129,321,260 $ 132,002,206 $ 129,781,926 $ 108,947,831 $ 88,628,552 Source: City of Moorpark CAFR. -121- City of Moorpark Fund Balances of Governmental Funds Last Ten Fiscal Years (continued) (Modified accrual basis of accounting) 2013 2014 2015 2016 2017 General fund: Reserved $ - $ - $ - $ - $ - Unreserved - - - - - Nonspendable 635,176 365,899 660,077 154,863 158,857 Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned 3,000,000 3,000,000 2,999,941 2,865,439 3,011,336 Total general fund $ 3,635,176 $ 3,365,899 $ 3,660,018 $ 3,020,302 $ 3,170,193 All other governmental funds: Reserved $ - $ - $ - $ - $ - Unreserved, reported in: Special revenue funds - - - - - Capital projects funds - - - - - Debt Service funds - - - - - Non-major funds - - - - - Fund Balances: Nonspendable 10,478,901 10,253,789 10,363,316 - - Restricted 44,067,428 49,389,385 54,572,775 66,039,589 61,978,590 Committed 742,546 698,395 711,399 736,185 847,588 Assigned 33,084,456 36,190,577 42,221,565 48,533,700 50,386,413 Unassigned (2,026,212) (1,825,187) (1,604,570) (1,503,658) (1,213,439) Total all other governmental funds $ 86,347,119 $ 94,706,959 $ 106,264,485 $ 113,805,816 $ 111,999,152 -122- City of Moorpark Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) 2008 2009 2010 2011 2012 Revenues: Taxes $15,392,269 $19,716,636 $ 18,730,771 $ 19,042,900 $ 16,147,175 Licenses and permits 72,951 645,010 598,370 587,186 561,530 Fines and forfeitures 358,665 484,930 436,377 441,543 446,426 Uses of money and property 5,684,111 3,114,881 1,547,229 1,537,255 1,381,235 Charges for services 677,277 3,813,159 3,284,275 2,579,593 3,559,454 Intergovernmental 7,549,040 3,948,059 2,629,132 4,786,235 1,627,462 Maintenance assessments 4,205,700 3,491,975 1,950,431 2,112,992 2,114,957 Franchise fees 301,514 - - - - Building and safety fees 530,761 - - - - Planning and public work fees 1,938,143 - - - - Development fees 4,501,837 - - - - Contributions from prop owners - - - - - Other 433,378 398,539 587,832 833,082 1,345,246 Total revenues 41,645,646 35,613,189 29,764,417 31,920,786 27,183,485 Expenditures: Current: General government 1,835,801 1,926,283 1,497,916 2,289,299 890,396 Public safety 6,637,757 6,814,425 6,769,484 6,839,355 6,467,065 Public services 12,505,613 11,259,297 12,343,896 12,876,132 8,321,090 Parks and recreation 4,291,867 4,182,091 4,453,400 4,074,490 5,038,957 Streets and roads - - - - - Capital outlay 14,682,017 8,100,604 5,548,179 24,506,524 4,679,053 Debt service: Principal 455,000 475,000 495,000 1,874,064 590,122 Interest 1,631,932 1,594,062 1,482,799 1,471,516 688,825 Bond issuance costs - - - - - Total expenditures 42,039,987 34,351,762 32,590,674 53,931,380 26,675,508 Excess of revenues over expenditures (394,341) 1,261,427 (2,826,257) (22,010,594) 507,977 Other financing sources(uses): Gain from sale of property - - - - - Bond Proceeds - - - - - Discount on Bonds - - - - - County settlements - 1,000,000 - - - Transfers in 27,626,755 17,062,650 9,378,101 3,820,738 4,739,189 Transfers out (27,626,755) (17,062,650) (9,378,101) (2,644,238) (4,739,189) Total other financing sources(uses) - 1,000,000 - 1,176,500 - Extraordinary Item - - - - - Net change in fund balances $ (394,341) $ 2,261,427 $ (2,826,257) $(20,834,094) $ 507,977 Debt service as a percentage of noncapital expenditures 8.3% 8.6% 7.9% 12.8% 6.2% Source: City of Moorpark CAFR. -123- City of Moorpark Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (continued) (Modified accrual basis of accounting) 2013 2014 2015 2016 2017 Revenues: Taxes $ 12,662,488 $ 12,931,981 $ 13,688,319 $14,417,009 $ 14,816,810 Licenses and permits 498,102 1,279,619 1,249,964 1,109,136 1,258,680 Fines and forfeitures 420,555 425,844 384,288 471,684 493,607 Uses of money and property 482,129 1,533,697 1,512,399 2,968,575 763,001 Charges for services 5,170,238 10,785,334 15,951,226 8,121,521 8,519,922 Intergovernmental 2,503,734 3,257,823 5,246,632 3,584,007 2,765,226 Maintenance assessments 1,893,699 2,159,121 2,487,047 2,737,711 3,015,980 Franchise fees - - - - - Building and safety fees - - - - - Planning and public work fees - - - - - Development fees - - - - - Contributions from prop owners - - - - - Other 167,784 438,612 445,197 1,443,805 774,632 Total revenues 23,798,729 32,812,031 40,965,072 34,853,448 32,407,858 Expenditures Current: General government 2,125,004 1,746,028 2,495,775 1,423,174 2,863,205 Public safety 6,306,906 6,643,550 6,789,765 6,999,561 8,493,445 Public services 7,391,632 9,126,851 10,468,227 9,254,464 6,652,530 Parks and recreation 5,086,773 5,354,601 5,732,314 6,089,350 5,687,328 Streets and roads - - - - 259,546 Capital outlay 5,144,756 1,580,438 3,892,870 4,163,202 10,085,230 Debt service: Principal - - - - - Interest - - 4,476 22,082 23,347 Bond issuance costs - - - - - Total expenditures 26,055,071 24,451,468 29,383,427 27,951,833 34,064,631 Excess of revenues over expenditures (2,256,342) 8,360,563 11,581,645 6,901,615 (1,656,773) Other financing sources(uses): Gain from sale of property - - - - - Bond Proceeds - - - - - Discount on Bonds - - - - - County settlements - - - - - Transfers in 3,262,665 4,718,044 7,365,629 6,115,233 3,961,767 Transfers out (3,262,665) (4,718,044) (7,365,629) (6,115,233) (3,961,767) Total other financing sources(uses) - - - - - Extraordinary Item (19,553,234) - - - - Net change in fund balances $(21,809,576) $ 8,360,563 $ 11,581,645 $ 6,901,615 $ (1,656,773) Debt service as a percentage of noncapital expenditures 0.0% 0.0% 0.0% 0.0% 0.0% -124- 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 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% 2016 5,333,705,999 122,090,764 73,812,980 5,381,983,783 1,040,390,804 73,089,277 34,190,142 1,079,289,939 0.094% 2017 5,654,428,902 115,219,381 76,811,398 5,692,836,885 1,042,974,399 63,588,301 35,131,954 1,071,430,746 0.094% Source: Ventura County Assessors 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. -125- City of Moorpark Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Rate per$100 of assessed value) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 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 0.02420 0 02500 0.02640 0.02850 0.03070 0 03240 0.03270 0.03290 0.03180 0.03200 School Distnct Metropolitan Water District 0.00450 000430 0.00430 0.00370 0.00370 000350 0.00350 0.00350 0.00350 0.00350 Moorpark Unified 0.03310 0 03510 0.03760 0.03980 0.05750 0 04490 0.03950 0.05550 0.06920 0.06540 School Distnct Ventura Community 0.00500 001520 0.01390 0.01510 0.01400 001910 0.01670 0.01760 0.01300 0.01550 College District 2 Total Direct& 1.06680 1 07960 1.08220 1.08710 1.10590 1 09990 1.09240 1.10950 1.11750 1.11640 Overlapping Tax Rates 3 City Share oft%Levy 0.07447 0 09094 0.09077 0 90770 0.09077 0 09078 0.09078 0.09078 0.09078 0.09078 per Prop 13 General Obligation Debt Rate - - - - - - - - - - 4 Redevelopment Rate 1.00450 1 00430 1.00430 1.00370 1.00370 - - - - - 5 Total Direct Rate 0.19963 021254 021589 021304 021047 021806 0.09508 0.09498 0.09447 0.09422 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 Citys 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 Ab<1 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. For the 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 -126- City of Moorpark Principal Property Tax Payers Current Year and Ten Years Ago 2017 2008 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 $ 87,624,229 1.54% $ - Waterstone Properties Moorpark LLC 72,628,314 1.28% 64,540,359 1.35 % DBRE Moorpark LLC 66,963,815 1.40 % Autosafe Airbag 12 California 66,687,506 1.40 % Mission Bell Plaza West LLC 52,835,000 0.93% Moorpark Center LLC 47,110,183 0.83% KB Home Greater LA Inc 42,592,440 0.89 % Tesoro Village Properties LLC 36,727,445 0.77 % Village at Moorpark LLC 31,876,571 0.56% Kavlico Corporation 30,701,700 0.64 % Ensign-Bickford Aerospace 29,198,139 0.51 % ROIC California 27,719,560 0.49% Moorpark Carlsberg Holdings 26,520,000 0.56 % Milan Tuscany LLC 25,848,387 0.45% Calabasas BCD 21,272,135 0.37% G &Y Moorpark LLC 20,049,100 0.35% 24,704,900 0.52 % Pardee Homes 21,458,763 0.45 % G-S Partnership 20,548,729 0.43 % $ 416,161,618 7.31% $ 401,445,657 8.40% * 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 2016-2017 property data. -127- 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 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% 2016 4,253,351 4,046,844 95.1 % 105,932 4,152,776 97.6% 2017 4,524,624 4,192,728 92.7% 133,274 4,326,002 95.6% 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 -128- 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 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 - - - - - - 2013 - - - - - - 2014 - - - - - - 2015 - - - - - - 2016 - - - - - - 2017 - - - - - - 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. -129- City of Moorpark Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years Outstanding General Bonded Debt Fiscal Year General Tax Percent of Ended Obligation Allocation Assessed Per June 30, Bonds Bonds Total Value2 Capita 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 - - - - - 2016 - - - - - 2017 - - - - - 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. -130- City of Moorpark Direct and Overlapping Debt City Assessed Valuation 2016-17 $ 5,692,836,885 Redevelopment Agency Incremental Valuation 1,071,430,746 Adjusted Assessed Valuation $ 4,621,406,139 Estimated Share of Percentage Debt as of Overlapping Applicable 6/30/2017 Debt Direct and Overlapping Tax and Assessment Debt: Metropolitan Water District 0.220% $ 74,905,000 $ 164,791 Ventura Community College District 4.624% 290,844,117 13,448,632 Conejo Valley Unified School District 0.015% 55,776,988 8,367 Moorpark Unified School District 93.595% 54,421,318 50,935,633 City of Moorpark 100.000% - - City of Moorpark Community Facilities District No.97-1 100.000% 4,305,000 4,305,000 City of Moorpark Community Facilities District No.2004-1 100.000% 10,265,000 10,265,000 City of Moorpark 1915 Act Bonds 100.000% 765,000 765,000 Total Direct and Overlapping Tax&Assessment Debt 491,282,423 79,892,422 Overlapping General Fund Obligation Debt: Ventura County General Fund Obligations 4.622% 346,795,000 16,028,865 Ventura County Superintendent of Schools COPs 4.622% 10,040,000 464,049 Moorpark Unified School District COPs 93.595% 5,385,000 5,040,091 Total Overlapping General Fund Obligation Debt 362,220,000 21,533,004 Overlapping Tax Increment Debt(Successor Agency): 100.000% 22,375,000 22,375,000 Total Direct Debt - Combined Total Debt* $ 875,877,423 123,800,427 Total Direct and Overlapping Debt $ 123,800,427 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. -131- City of Moorpark Legal Debt Margin Information Last Ten Fiscal Years 2008 2009 2010 2011 2012 Assessed valuation $4,558,597,806 $4,700,305,496 $4,619,910,655 $4,659,133,835 $4,662,536,870 Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 1,139,649,452 1,175,076,374 1,154,977,664 1,164,783,459 1,165,634,218 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 170,947,418 176,261,456 173,246,650 174,717,519 174,845,133 Total net debt applicable to limit: General Obligation Bonds Legal debt margin $ 170,947,418 $ 176,261,456 $ 173,246,650 $ 174,717,519 $ 174,845,133 Total debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% 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. -132- City of Moorpark Legal Debt Margin Information Last Ten Fiscal Years (continued) 2013 2014 2015 2016 2017 Assessed valuation $4,596,277,650 $4,718,569,672 $5,042,223,024 $5,333,705,999 $5,654,428,902 Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 1,149,069,413 1,179,642,418 1,260,555,756 1,333,426,500 1,413,607,226 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 172,360,412 176,946,363 189,083,363 200,013,975 212,041,084 Total net debt applicable to limit: - - - - - General Obligation Bonds Legal debt margin $ 172,360,412 $ 176,946,363 $ 189,083,363 $ 200,013,975 $ 212,041,084 Total debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% -133- 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 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 2016 - - - n/a 2017 - - - 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. -134- City of Moorpark Demographic and Economic Statistics Last Ten Calendar Years Median Calendar Household Household Unemployment Year Population Income(000's) Income Rate 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 % 2016 36,715 1,154,720 103,159 48 % 2017 36,828 1,120,301 99,777 3.5 % Sources: California State Department of Finance -135- City of Moorpark Principal Employers Current and Ten Calendar Years Ago 2017 2007 Percent of Percent of Number of Total Number of Total Employer Employees Employment Employees Employment Pennymac 880 4.9% - - Moorpark Unified School District 788 4.4% 871 7.4% Moorpark College 711 4.0% 315 2.7% Pentair Water Pool&Spa 530 3.0% 527 4.5% Benchmark Electronics Manufacturing Solutions 320 1.8% - - XP Systems 140 0.8% - - Target Stores/T-1547 138 0.8% - - Ensign-Bickford Aerospace&Defense Company 123 0.7% - - Test Equity LLC 121 0.7% - - Picnic Time, Inc. 120 0.7% - - Kretek International 120 0.7% - - Kavlico - - 1,200 10.2% Waterpik Technology(Teledyne) - - 451 3.8% First Data - - 442 3.8% Aquaria - - 350 3.0% Special Devices Inc. - - 290 2.5% SMTEK International - - 220 1.9% Aldik - - 200 1.7% Axius/Auto Shade - - 150 1.3% Boething Tree Farm - - 145 1.2% American Board Assembly - - 115 1.0% -136- City of Moorpark Full-Time and Part-Time City Employees by Function Last Ten Fiscal Years Function 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 General government 26 26 26 27 28 27 27 26 25 31 Public safety(crossing guards) 7 6 5 5 3 3 3 3 2 2 Public services 22 22 20 16 18 19 19 22 19 17 Parks and recreation 54 56 55 54 51 58 75 70 57 74 Total 109 110 106 102 100 107 124 121 103 124 Public safety 1 42 38 38 40 39 40 40 40 40 40 1 Police and fire services were provided by the County. Fire= 18 and police= 22 Source: City of Moorpark, Finance Department -137- City of Moorpark Operating Indicators by Function Last Ten Fiscal Years 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Police:(A) Arrests 1,732 1,412 2,207 1,266 1,158 1,120 1,148 938 966 1,139 Parking citations issued 2,860 3,254 4,969 4,887 5,704 5,129 2,736 3,117 4,582 5,841 Fire:(B) Number of"prime"emergency calls 1,362 1,100 1,945 1,707 2,174 1,851 1,835 1,996 2,026 2,107 Business Inspections* 130 143 115 196 196 132 500 694 727 443 Public works:(C) Street resurfacing(miles) 3.8 - 5.0 2.0 - 4.5 - - - - Parks and recreation:(D) Number of recreation classes 378 265 419 325 308 300 265 303 295 314 Number of facility rentals 210 186 230 277 118 226 103 248 287 405 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. -138- City of Moorpark Capital Asset Statistics by Function Last Ten Fiscal Years 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 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) 78 79 79 79 79 79 79 79 79 79 Streetlights' 2,510 2,518 2,518 2,620 2,620 2,620 2,620 2,620 2,620 2,620 Traffic signals 20 20 20 21 21 21 21 21 21 22 Parks and recreation: Parks 16 17 18 18 18 18 18 19 19 19 Community centers 2 2 2 2 2 2 2 2 2 2 'Of the streetlights, 2,612 are owned by Edison and 8 are owned by the City. Source: City of Moorpark -139- This page intentionally left blank.