Page 108 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

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

Note 12. Successor Agency Trust for Assets of the Former Redevelopment Agency (Continued)

The annual debt service requirements for the 2017 Tax Allocation Bonds Series A outstanding
at June 30, 2025, are as follows:

2017 Tax Allocation Bonds
Series A
Year Ending
June 30, Principal Interest Total
2026 $ 1,395,000 $ 1,478,981 $ 2,873,981
2027 2,045,000 1,399,956 3,444,956
2028 2,145,000 1,295,206 3,440,206
2029 2,250,000 1,185,331 3,435,331
2030 2,360,000 1,070,081 3,430,081
2031 - 2035 14,315,000 3,468,981 17,783,981
2036 - 2039 13,535,000 860,091 14,395,091
Totals $ 38,045,000 $ 10,758,628 $ 48,803,628

Pledged Revenue

The former Redevelopment Agency pledged, as security for bonds issued, either directly
or through the Financing Authority, a portion of tax increment revenue (including Low and
Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds
issued were to provide financing for various capital projects, accomplish Low and Moderate
Income Housing projects and to decease previously issued bonds. Assembly Bill X1 26
provided that upon dissolution of the Redevelopment Agency, property taxes allocated to
redevelopment agencies no longer are deemed tax increment but rather property tax revenues
and will be allocated first to successor agencies to make payments on the indebtedness
incurred by the dissolved redevelopment agency. Total principal and interest remaining on the
debt is $48,803,628 with annual debt service requirements as indicated in the previous chart.
For the current year, the total property tax revenue recognized by the Successor Agency for
the payment of indebtedness incurred by the dissolved redevelopment agency was $4,273,140
and the debt service obligation on the bonds was $1,506,881.

a. Insurance

The Successor Agency is covered under the City of Moreno Valley’s insurance policies.
Therefore, the limitation and self-insured retentions applicable to the City also apply to the
Successor Agency. Additional information as to coverage and self-insured retentions can
be found in Note 11.

b. Commitments and Contingencies

Litigation
At June 30, 2025, the Successor Agency was involved as a defendant in several lawsuits
arising out of the ordinary conduct of its affairs. It is the opinion of management that
settlements of these lawsuits, including losses for claims that are incurred but not reported,
if any, will not have a material effect on the financial position of the Successor Agency.

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