Page 67 - 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)

Property taxes received within 60 days after the City’s fiscal year end are considered
“measurable” and “available” and are accrued in the City’s financial statements.

Pensions:

For purposes of measuring the net pension liability, deferred outflows and inflows of
resources related to pensions, and pension expense, information about the fiduciary net
position and additions to/deductions from the fiduciary net position have been determined
on the same basis as they are reported by the California Public Employees’ Retirement
System (CalPERS) Financial Office. For this purpose, benefit payments (including refunds
of employee contributions) are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.

Postemployment Benefits Other than Pensions (OPEB):

For purposes of measuring the net OPEB liability, deferred outflows of resources and
deferred inflows of resources related to OPEB, and OPEB expense, information about the
fiduciary net position of the City of Moreno Valley Retiree Benefits Plan (the Plan) and
additions to/deductions from the Plan’s fiduciary net position have been determined on the
same basis as they are reported by the Plan. For this purpose, the Plan recognizes benefit
payments when due and payable in accordance with the benefit terms. Investments are
reported at fair value, except for money market investments and participating interest-
earning investment contracts that have a maturity at the time of purchase of one year or
less, which are reported at cost.

e. Implementation of New Accounting Pronouncements

During the fiscal year ended June 30, 2025, the City implemented the following GASB
standard:

GASB Statement No. 102-Certain risk disclosures. The objective of this Statement is to
provide users of government financial statements with essential information about risks
related to a government’s vulnerabilities due to certain concentrations or constraints.

This Statement defines a concentration as a lack of diversity related to an aspect of a
significant inflow of resource or outflow of resources. A constraint is a limitation imposed
on a government by an external party or by formal action of the government’s highest level
of decision-making authority. Concentrations and constraints may limit a government’s
ability to acquire resources or control spending.

This Statement requires a government to assess whether a concentration or constraint
makes the primary government reporting unit or other reporting units that report a
liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this
Statement requires a government to assess whether an event or events associated with a
concentration or constraint that could cause the substantial impact have occurred, have
begun to occur, or are more likely than not to begin to occur within 12 months of the date
the financial statements are issued.

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