Financial Report - Moreno Valley

City of Moreno Valley
Notes to Financial Statements
Year Ended June 30, 2011
Note 1: Organization and Summary of Significant Accounting Policies
a. Description of the Reporting Entity
The City of Moreno Valley, California (the City), is located in the County of Riverside and
was incorporated on December 3, 1984 under the general laws of the State of California.
The City operates under an elected Council/City Manager form of government. The City's
major operations include police and fire protection, public works, parks, recreation and
certain social services and general administration services.
Reporting Entity
Accounting principles generally accepted in the United States of America require that
these financial statements represent the City of Moreno Valley and its component
units. A component unit is included in the primary government's financial statements
if the governing body is substantively the same as that of the City or if the component
unit provides services or other benefits almost entirely to the primary government.
The component units discussed below are included in the City's reporting entity
because of their operational significance or financial relationships with the City.
These component units are controlled by common governing boards, which are
substantively the same as the City's and are presented as blended component units
for financial reporting purposes. The component units have the same fiscal year end
as the City. For those that publish separate financial statements, those statements
can be obtained from the City Clerk.
� The Community Redevelopment Agency of the City of Moreno Valley (the
Agency) was established pursuant to the State of California Health and Safety
Code, Section 53601, entitled Community Redevelopment Law. Its purpose is to
prepare and carry out plans for the improvement, rehabilitation and
redevelopment of blighted areas within the City of Moreno Valley.
� The Moreno Valley Community Services District (the District) was established
pursuant to the terms and provisions of the Mello-Roos Community Facilities Act
of 1982. Its purpose is to finance the acquisition and construction of certain major
public capital infrastructure and improvements within the boundaries of the
Community Facilities Districts.
� Community Facilities District No. 2 (Moreno Valley Auto Mall), Community
Facilities District No. 3 (Auto Mall Refinancing), and Community Facilities District
No. 87-1 and 87-1, IA#1 (Towngate) were established pursuant to the terms and
provisions of the Mello-Roos Community Facilities Act of 1982. Their purpose is
to finance the acquisition and construction of certain major public capital
infrastructure and improvements within the boundaries of the Community
Facilities Districts and they are governed by City Council.
� Moreno Valley Public Facilities Financing Corporation (MVPFFC) and the
Moreno Valley Public Financing Authority (MVPFA) are nonprofit public benefit
corporations, formed for the purpose of providing public facility financing to the
City. The Corporations' Boards of Directors are each composed of the five
elected City Council members. Both Corporations may acquire, construct,
rehabilitate, remodel, improve, install and finance or lease various facilities, land
and equipment for the benefit of the City.
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