Page 102 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

Notes to Financial Statements
For the Year Ended June 30, 2025

Note 10. Commitments and Contingencies

a. Construction Commitments

The following material construction commitments existed at June 30, 2025:

Expenditures
Contract to date as of Remaining
Project Name Amount 6/30/2025 Commitments
Governmental Activities
Moreno Valley Museum & Artspace $ 10,000,000 $ 6,250,000 $ 3,750,000
Juan Bautista de Anza Multi-Use Trail - ATP 4 6,544,493 5,631,860 912,633
Citywide Pavement Rehab Program (FY 23/24) 11,318,015 1,307,917 10,010,098
Corporate Yard Office Building F 5,670,316 576,800 5,093,516
Gateway Park Revitalization Project - Dog Park 1,846,010 145,389 1,700,621
Indian Street/ Cardinal Avenue Bridge (Over Lateral A) 1,589,548 490,717 1,098,831
Moreno MDP Line K/ Reche Canyon Dentention-Debris
Basin 849,781 38,292 811,489
Pump Track at Morrison Park 8,753,539 4,822,363 3,931,176
Senior Center Expansion 6,258,412 1,822,326 4,436,086
SR-60/ Redlands Boulevard Interchange 2,231,876 350,803 1,881,073
Other projects 51,806,798 46,216,446 5,590,352

Electric Utility
Ironwood Line Extension $ 2,764,528 $ - $ 2,764,528
Other projects 23,003,592 21,705,185 1,298,407

b. Litigation

There are several lawsuits pending against the City. The outcome and eventual liability
of the City, if any, in these cases is not known at this time. Management estimates that
the potential claims against the City, not covered by insurance or self-insurance reserves,
resulting from such litigation would not materially affect the financial statements of the
City.

c. Grants Review

The City has received local, state and federal funds for specific purposes that are subject
to review and audit by the contracting agencies. Although such audits could generate
expense disallowances under terms of the grants or contracts, it is believed that any
required reimbursements will not be material.

d. Tax Abatements
GASB 77

As of June 30, 2025, the City has entered into one agreement to provide tax abatements
to local businesses. These abatements are designed to encourage businesses to hire city
residents and have “local hire” clauses in them. The structure of the abatement, or rebate,
and the local-hire requirement is specific to each agreement and may vary with each one.

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