Page 66 - 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 (Continued)

Assigned include amounts that are constrained by the government’s intent to be used for
specific purposes but are neither restricted nor committed. The Chief Financial Officer
is authorized to assign amounts to a specific purpose, which was established by the
governing body in a resolution.
Unassigned include the residual amounts that have not been restricted, committed,
or assigned to specific purposes. General Fund is the only fund that reports a positive
unassigned fund balance amount. In other governmental funds, if expenditures incurred
for specific purposes exceed the amounts restricted, committed, or assigned to those
purposes, it may be necessary to report a negative unassigned fund balance.

An individual governmental fund could include non-spendable resources and amounts
that are restricted, committed, assigned, or unassigned or any combination of those
classifications. Restricted amounts are to be considered spent when an expenditure is
incurred for purposes for which both restricted and unrestricted fund balance is available
and committed, assigned, then unassigned amounts are considered to have been spent
when an expenditure is incurred for purposes for which amounts in any of those unrestricted
fund balance classifications can be used.
Fund Balance Flow Assumptions:

Sometimes the government will fund outlays for a particular purpose from both restricted
and unrestricted resources (the total of committed, assigned, and unassigned fund
balance). In order to calculate the amounts to report as restricted, committed, assigned, and
unassigned fund balance in the governmental fund financial statements, a flow assumption
must be made about the order in which the resources are considered to be applied. It is
the government’s policy to consider restricted fund balance to have been depleted before
using any of the components of unrestricted fund balance. Further, when the components
of unrestricted fund balance can be used for the same purpose, committed fund balance is
depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

Net Position Flow Assumption:

Sometimes the government will fund outlays for a particular purpose from both restricted
(e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate
the amounts to report as restricted – net position and unrestricted – net position in the
government-wide and proprietary fund financial statements, a flow assumption must
be made about the order in which the resources are considered to be applied. It is the
government’s policy to consider restricted – net position to have been depleted before
unrestricted – net position is applied.

Property Taxes:

Property taxes attach as an enforceable lien on property as of January 1. Secured property
taxes are payable in two installments with December 10 the last day to pay the first
installment of secured property taxes without penalty, and April 10 the last day to pay
the second installment of secured property taxes without penalty. Unsecured personal
property taxes are due in a single installment on August 31. The County of Riverside bills
and collects the property taxes and remits them to the City in installments during the year.

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