Financial Report - Moreno Valley

esulting in a $2 million positive variance to budget. Similarly, sales taxes were budgeted to be flat compared to
the prior year, while actual revenue growth delivered a $1.5 million increase compared to budget. Other primary
revenue sources also increased, such as Utility Tax, Business License Taxes, Transient Occupancy Taxes and
Franchise fees.
General Fund actual expenditures were $5.6 million less than the final amended budget. Major contributors to
this result were in large part due to Police Services ($2.7 million) and Fire Services ($0.7 million) coming in
under budget primarily as a result of contract service rates coming in below budgeted rates. Fire Services also
reflected an additional $0.5 million savings from the delay in purchasing a fire engine.
The City implemented GASB Statement No. 54 Fund Balance Reporting and Governmental Fund Type
Definitions in the Fiscal Year 2010-11. Comparative data for previous years is not retroactively presented in this
analysis.
Other Major Fund Financial Results
The fund balance of the Community Service District Zones Special Revenue Fund increased by $1.5 million over
FY 2009-10. This fund accounts for the administration, operations and maintenance of the City’s various service
zones established by the Moreno Valley Community Services District. The increase in fund balance is primarily
the result of $775,000 in transfers from the General Fund to support Library Services ($450,000) and projects in
Parks and Community Services ($325,000). Parks and Community Services also experienced an increase in fees
collected of $300,000 while managing expenditure decreases of $250,000 from the prior year.
The fund balance of the Development Impact Fees Special Revenue Fund decreased by $2.6 million under FY
2009-10. This fund accounts for the developer impact fees, which are one-time charges, used to offset the
additional public-service costs of new development. The decrease in fund balance is due to fewer fee collections
as a result of the recessionary impact on new development projects. The completion of the Nason Street
Interchange project totaled $1.7 million in expenditures, while remaining project completions totaled $900,000.
The fund balance of the Community Redevelopment Agency Capital Projects Fund decreased by $4.2 million
under FY 2009-10. This fund accounts for the tax increment revenues collected by the Community
Redevelopment Agency and used for administrative expenditures, capital projects with the redevelopment project
area, and low and moderate income housing programs as required by law. The decrease in fund balance is a result
of the completion of two large projects: Day Street improvements totaled $2 million and Indian Street Detention
Basin totaled $2.2 million.
The fund balance of the Community Redevelopment Agency Debt Service Fund increased by $0.3 million over
FY 2009-10. This fund accounts for the tax increment revenues and other resources collected by the Community
Redevelopment Agency for the payment of Agency debt service. The increase in fund balance is the result of an
increase in property tax collections of $160,000 and sales taxes collected of $70,000.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2011, the City’s governmental activities had $1.095 billion ($830 million net of depreciation)
invested in a broad range of capital assets, including land, buildings and improvements, machinery and
equipment, vehicles, park facilities, roads, highways and bridges. The increase of $13.7 million over FY 2009-10
is primarily attributed to the increase in infrastructure.
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