Page 14 - Moreno Valley 2019 Popular Annual Financial Report

FINANCIAL REPORT
HIGHLIGHTS

The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $1.06 billion
(net position) at June 30, 2019.

The City’s total net position increased $14.8 million for fiscal year 2018-2019 mainly due to expenditure savings in governmental
activities and net revenues generated from business-type operations.

Moreno Valley is one of the most fiscally strong cities in the nation. This is due in part to the adoption of a comprehensive
financial reserve policy. Financial reserves protect against future economic downturns, which bring unpredictable shortfalls
in tax revenue, and better prepare the City, its residents and its businesses for a catastrophic natural disaster.

The General Fund had $22.1 million in unassigned fund balance, an increase of $2.4 million in comparison with the prior year.
This was primarily due to capital outlay delayed to next fiscal year and current expenditure savings. Unassigned amounts are
not constrained in any way and are available for any purpose.

GENERAL FUND RESER VES & UNASSIGNED
FUND BALANCE

34%
Unassigned
FY 18/19 FUND BALANCE
Economic Uncertainty Reserve $11,160,460
29% Operating Reserve Stabilization $13,392,552
Other Unassigned $22,138,541
17% Categories
Economic
Uncertainty
Reserve
20%
Operating
Reserve
Stabilization
terms

Economic Uncertainty Reserve - established at a minimum of 10% of the General Fund’s current operating expenditures.
These funds are to be used during times of severe economic distress such as recessionary periods, State raids on local
resources, or other impactful unforeseen events which greatly diminish the financial ability of the City to deliver core
services.
Operating Reserve Stabilization- established for the purpose of providing funds for an urgent catastrophic event or
major disaster that affects the safety of residents, employees, or property (e.g. earthquake, wildfires, terrorist attack, etc.)

Unassigned – Established to protect against cash flow shortfalls related to timing of projected revenue receipts and to
maintain budgeted level of services.

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