Page 7 - 2023 Moreno Valley Popular Annual Financial Report
P. 7

GENERAL FUND                                                             FUND BALANCE
        R E S E RV E S   &   U N A S S i G N E D














                                                                GENERAL FUND RESERVES
        Moreno Valley is ranked as one of the most fiscally
                                                                & UNASSIGNED FUND BALANCE
        strong cities in the nation. This is due in part to
        the adoption of a comprehensive financial reserve
                                                                    30%
        policy.  Financial reserves protect against future
                                                                    Other
        economic  downturns,  which  bring  unpredictable           Categories
        shortfalls  in  tax  revenue,  and  better  prepare
        the  City,  its  residents,  and  its  businesses  for  a
        catastrophic natural disaster.

                                                                                                      24%
        The General Fund had $23.7 million in unassigned
                                                                                                      Unassigned
        fund  balance,  a  decrease  of  $27.4  million  in
        comparison with the prior year. This was due to the
        increase in fund balances for Reserve Stabilization
        (Emergency Fund) and Economic Uncertainty
        Reserve (Rainy Day Fund), as required to maintain
                                                                    23%
        adequate reserve levels in compliance with City             Economic                23%
                                                                    Uncertainty             Operating
        Council adopted policy.                                                             Reserve
                                                                    Reserve
                                                                                            Stabilization

        TERMS
                                                                FY22/23 FUND BALANCE

        ECONOMIC UNCERTAINTY RESERVE                             Economic Uncertainty Reserve        $22,446,030
        Established for the purpose of providing funds to        Operating Reserve Stabilization     $22,446,030
        be used during times of severe economic distress
        such as  recessionary  periods,  State raids  on  local   Unassigned                         $23,671,159
        resources, or other impactful unforeseen events          Other Categories                    $30,081,230
        which  greatly  diminish  the  financial  ability  of  the   Total Fund Balance              $98,644,449
        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
 *Unemployment rate as of 6.30.20. Reflects impacts due to COVID-19.  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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