Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Management’s Discussion and Analysis<br />
As management of the City of <strong>Moreno</strong> <strong>Valley</strong> (the City), we offer this narrative overview and analysis of<br />
financial activities for the fiscal year ended June 30, 2011. We encourage readers to consider the information<br />
presented here in conjunction with additional information furnished in our letter of transmittal, which can be<br />
found in the Introductory Section of this Comprehensive Annual <strong>Financial</strong> <strong>Report</strong>. All amounts, unless otherwise<br />
indicated, are expressed in thousands of dollars.<br />
<strong>Financial</strong> Highlights<br />
• The assets of the City of <strong>Moreno</strong> <strong>Valley</strong> exceeded its liabilities at June 30, 2011 by $958.5 million (net<br />
assets). Of this amount, $51.2 million (unrestricted net assets) may be used to meet the City’s ongoing<br />
obligations to citizens and creditors.<br />
• The City’s governmental activities’ net assets increased by $6.8 million, which is largely attributable to an<br />
increase in capital assets.<br />
• During the year, the City (which includes the Community Redevelopment Agency of the City of <strong>Moreno</strong><br />
<strong>Valley</strong> and the City of <strong>Moreno</strong> <strong>Valley</strong> Community Services District) had revenues that were $8.2 million<br />
more than the $165.3 million expenses recorded by the City in its governmental and business-type activities.<br />
• The total debt of the City showed a net decrease of $0.6 million (0.5%) during the current fiscal year. The<br />
decrease in debt was a result of normal maturity on existing debt.<br />
• The General Fund had an end of year fund balance of $46.4 million. This was a decrease of $4.9 million and a<br />
decrease of 9.6% over FY 2009-10.<br />
Overview of <strong>Financial</strong> Statements<br />
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements,<br />
comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3)<br />
notes to the financial statements. This report also contains certain supplementary information.<br />
Government-wide financial statements. The government-wide financial statements are designed to provide<br />
readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.<br />
The statement of net assets presents information on all of the City’s assets and liabilities, with the difference<br />
between the two reported as net assets. Over time, increases or decreases in the net assets may serve as a useful<br />
indicator of whether the financial position of the City is improving or deteriorating.<br />
The statement of activities presents information showing how the City’s net assets changed during the most recent<br />
fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs,<br />
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for<br />
some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but<br />
unused vacation leave).<br />
The government-wide financial statements display functions of the City that are principally supported by taxes<br />
and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a<br />
significant portion of their costs through user fees and charges (business-type activities). The governmental<br />
activities of the City include general government, public safety, community development, community and<br />
cultural, public works, and interest on long-term debt. The business-type activities of the City include the Electric<br />
Utility.<br />
3
Change language