Page 57 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

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

Note 1. Organization and Summary of Significant Accounting Policies

a. Description of the Reporting Entity

The City of Moreno Valley, California (the City), is located in the County of Riverside and
was incorporated on December 3, 1984 under the general laws of the State of California.
The City operates under an elected Council/City Manager form of government. The City’s
major operations include police and fire protection, public works, parks, recreation and
certain social services and general administration services.

Reporting Entity:
Accounting principles generally accepted in the United States of America require that
these financial statements represent the City of Moreno Valley and its component units.
A component unit is included in the primary government’s financial statements if the
governing body is substantively the same as that of the City or if the component unit provides
services or other benefits almost entirely to the primary government. The component
units discussed below are legally separate component units and are included in the City’s
reporting entity because of their operational significance or financial relationships with
the City. The City Council members, in separate session, serve as the governing board
of the Moreno Valley Community Services District, the Moreno Valley Public Facilities
Financing Corporation, and the Moreno Valley Housing Authority, as such; these entities
are presented on a blended basis. The component units have the same fiscal year end as
the City.

• The Moreno Valley Community Services District (the District) was established pursuant
to the terms and provisions of the California Government Code, Division 3 of Title 6.
The District was established to allow for the continued provision of certain services
provided by the County of Riverside through the use of County Service Areas prior to
the City incorporation.
• Community Facilities District 2014-01 (Maintenance Services), 2023-01 (Public Safety),
5 (Stoneridge), and 7 (Improvement Area 1) were established pursuant to the terms
and provisions of the Mello-Roos Community Facilities Act of 1982. Their purpose is to
finance the acquisition, construction, or ongoing maintenance of certain major public
capital infrastructure and improvements within the boundaries of the Community
Facilities Districts and they are governed by City Council. Separate financial statements
are not available for the Community Facilities Districts.

• The Moreno Valley Public Facilities Financing Corporation (MVPFFC) and the Moreno
Valley Public Financing Authority (MVPFA) are nonprofit public benefit corporations,
formed for the purpose of providing public facility financing to the City. The Corporations’
Boards of Directors are each composed of the five elected City Council members. Both
Corporations may acquire, construct, rehabilitate, remodel, improve, install and finance
or lease various facilities, land and equipment for the benefit of the City. Separate
financial statements are not available for the Public Facilities Financing Corporation
and the Public Financing Authority.

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