Page 14 - 2023 Moreno Valley Popular Annual Financial Report
P. 14

LONG TERM

                                                    D E BT





        Governments,  just  like  businesses  and  individuals,
        must finance certain purchases with debt. The key
        is to match the life of the assets being purchased,
        with  the  term  of  the  debt  payments.  Accordingly,
        the City’s debt is predominantly related to long-lived
        capital assets.


        At year-end, the City’s governmental activities had
                                                     OUTSTANDINGDEBT
        $142.0 million in bonds, certificates of participation,
        lease liability, SBITA, compensated absences, Pension   FOR THE YEAR ENDED        Governmental  Business Type
        and Other Post-Employment Benefits (OPEB) liability   JUNE 30, 2023               Activities   Activities
        and self-insurance claims and judgments. FY 22/23 is
                                                      Direct Placements
        the first year of recognizing SBITA liability as a result   Capital leases        $-            $6,425,772
        of implementing GASB 96.                      Other Debt
                                                      Lease revenue bonds                 23,473,688    46,118,201
                                                      Certificates of participation        17,905,000    -
        The City’s credit rating is AA- by Standard & Poor’s.
                                                      Lease liability                     1,852,301     -
        A key factor in achieving and maintaining the strong
                                                      SBITA                               1,003,657     -
        rating is the action of City Council and the City   Compensated absences          6,897,968     156,958
                                                      Net pension and OPEB liability      86,853,979    2,982,714
        Manager to balance the City’s General Fund budget.
                                                      Self insurance claims and judgments  4,034,000    -
                                                                                          $142,020,593  $55,683,645
        For  more  information  on  the  City’s  debt  program,
                At  year-end,  the  City’s  governmental  activities  had
        visit the Investor Relations page on the City’s
                $114.1  million  in  bonds,  certificates  of  participation,
        website.
                compensated  absences,  Pension  and  Other  Post-  DEBT PER CAPITA
                Employment Benefits (OPEB) liability and self-insurance
                claims  and  judgments.  FY  21/22  is  the  sixth  year  of   FY 2018/19  FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23
        WHY DOES THE                                               $500
                recognizing OPEB liability as a result of implementing
        CITY BORROW
                GASB 75 in fiscal year 16/17.

                The City’s credit rating is AA- by Standard & Poor’s.  A   $400
        Local  governments  issue  bonds  to  pay  for  large,
                key  factor  in  achieving  and  maintaining  the  strong
        expensive, and long-lived capital projects, including
                rating is the action of City Council and the City Manager   $300
        roads  and  electric  utilities.  Without  issuing  debt,
                to balance the City’s General Fund budget.        MILLIONS
        these  important  infrastructure  needs  would  be                  $518 $500  $489  $473 $451
        unmet. While local governments can sometimes               $200
                For more information on the City’s debt program, visit
        pay  for  capital  investments  with current  revenues,
                the Investor Relations page on the City’s website.
        borrowing  allows  them  to  spread  the  costs  across
                                                                   $100
        multiple generations due to their long-term benefit.

                                                                     $0
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