Financial Report - Moreno Valley

Charges for services increased $4.5 million, 11.8%, over FY 2009-10. This increase represents slightly improved
activity within the development services related fees. Development Impact Fees (DIF) nearly doubled to $1.1
million, in addition to smaller increases in many fees supported by development. The Community Services
District Zone B was infused with a $714,000 contribution to maintain streetlight services. User fees related to the
Cities electric utility increased by over $2 million as a result of fee increases and a growing customer base.
Capital contributions and grants decreased $42.2 million, 58.7% under FY 2009-10. This category fluctuates
dramatically each year depending upon the number and value of dedications of developer constructed
infrastructure projects, such as streets, curbs, gutters, street lights, etc. Fiscal Year 2009-10 reflected project
dedications that were completed before the economy slowed considerably, reflecting total project values of $71.9
million. As the economy began declining, the number of active projects dropped sharply, resulting in fewer
developer supported and grant funded infrastructure projects being completed and dedicated, totaling only $29.7
million in FY 2010-11.
Property tax revenue increased $5.9 million, 35.1% over FY 2009-10. The Property Tax collections in FY 2009-
10 were reduced by the Educational Revenue Augmentation Fund (ERAF) payment of $5.3 million required by
the State of California to be reduced from Property Tax Increment of the Redevelopment Agency, accounting for
the majority of the fluctuation.
Use of money and property decreased $5.6 million, 51.4% under FY 2009-10. The primary perceived reduction in
this category is created by an accounting requirement dictated by Government Accounting Standards Board
Statement (GASB) 31 which required the recording of an unrealized investment gain in the FY 2009-10 totals of
$3.7 million. The GASB 31 adjustment in FY 2010-11 was a small increase in investment income. The balance of
the reduction is a result of lower cash balances invested and lower rates of return on investments due to current
market conditions.
Governmental Activities
The government’s net assets increased by $6.8 million, with total revenues of $157.6 million, total expenses of
$150.4 million, transfers out of $0.1 million, and a restatement of previously over-reported net assets of $0.2
million. Program revenues were $77.8 million and general revenues were $79.8 million, funding the net
difference between program revenues and expenses. The largest single category of revenue was capital
contributions and grants at $29.8 million and is also program revenue. This revenue goes directly against
expenses in recovering the costs of providing those services. This revenue category decreased by $42.2 million
over FY 2009-10 primarily due to reduced development activity, resulting in fewer dedications of infrastructure to
the City, as noted above. The second largest single revenue category was charges for services, at $27.3 million.
This is program revenue and goes directly against expenses in recovering the costs of providing those services.
This revenue category increased by $2.2 million from FY 2009-10. The third largest single revenue category was
property taxes at $22.7 million. Operating contributions and grants was the fourth largest single revenue source at
$20.7 million, and utility user’s tax was the fifth largest revenue source at $15.3 million. Graph 1 presents the
revenues by source for governmental activities for the fiscal year ended June 30, 2011.
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