Page 71 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

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

Note 3. Cash and Investments

As of June 30, 2025, cash and investments were reported in the accompanying financial
statements as follows:

Governmental Activities $ 378,887,100
Business-type Activities 92,740,548
Fiduciary Funds 3,424,155

Total Cash and Investments $ 475,051,803

Cash and investments as of June 30, 2025, consist of the following:

Cash and cash equivalents
Petty cash and cash boxes $ 10,580
Demand deposits 2,193,187
Investments 467,174,596
Restricted
Cash and investments 5,635,925
Cash with fiscal agents 37,515
Total cash and investments $ 475,051,803

The City follows the practice of pooling cash and investments of all funds, except for funds
required to be held by fiscal agents under provisions of bond indentures. Interest income
earned on pooled cash and investments is allocated monthly to the various funds based on
monthly cash and investment balances. Interest income from cash and investments with fiscal
agents is credited directly to the related fund.

Deposits:

The California Government Code requires California banks and savings and loan associations
to secure a City’s deposits by pledging government securities with a value of 110% of a
City’s deposits. California law also allows financial institutions to secure City deposits by
pledging first trust deed mortgage notes having a value of 150% of a City’s total deposits. The
City Treasurer may waive the collateral requirement for deposits that are fully insured up to
$250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held
in safekeeping by an authorized Agent of Depository recognized by the State of California
Department of Banking. The collateral for deposits with savings and loan associations is
generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an
Agent of Depository. These securities are physically held in an undivided pool for all California
public agency depositors.

Under Government Code Section 53655, the placement of securities by a bank or savings and
loan association with an “Agent of Depository” has the effect of perfecting the security interest
in the name of the local government agency. Accordingly, all collateral held by the California
Agents of Depository are considered to be held for, and in the name of, the local government
agency.

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