Page 21 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

Management’s Discussion and Analysis
For the Year Ended June 30, 2025
The following discussion and analysis of the financial performance of the City of Moreno Valley provides
an overview of the City’s financial activities for the fiscal year ended June 30, 2025. Please read it in
conjunction with the transmittal letter located in the introductory section, and financial statements, which
follow this discussion.

Financial Highlights

• In the Government-wide - Statement of Net Position: The City’s assets and deferred outflows of
resources exceeded its liabilities and deferred inflows of resources by $1.3 billion (net position) on
June 30, 2025.
• In the Government-wide - Statement of Net Position: The City’s total net position increased $28.5
million for fiscal year 2024-25 mainly due to the increase in current and other assets.
• In the Governmental Fund – Balance Sheet: The General Fund had an end of year fund balance of
$114.4 million. The unassigned fund balance increased by $7.4 million, totaling $30.8 million. The fund
balances for Operating Reserve Stabilization (Emergency Fund) and Economic Uncertainty Reserve
(Rainy Day Fund) meet adequate reserve levels in compliance with City Council adopted policy.
• For business-type activities: Revenues exceeded expenses by $23.8 million, increasing the unrestricted
net position to $76.2 million. Future infrastructure projects are anticipated to meet the demands for
the City’s electric service customer base.

Overview of Financial Statements

The City’s basic financial statements are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also
contains other supplementary information in addition to the basic financial statements.

Components of the Basic Financial Statements

Government-wide Financial Statements Provide both long-term and short-term information
about the City’s overall financial status
Fund Financial Statements Focus on individual parts of the City government,
reporting the City’s operations in more detail than
the government-wide statements
Notes to the Financial Statements Additional information that is essential to a
full understanding of the data provided in the
government-wide and fund financial statements

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