Page 87 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

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

Note 6. Long-term Debt (Continued)

2024 Refunding Lease Revenue Bonds

Refunding Lease Revenue Bonds 2024 in the original issue amount of $21,960 were issued
for the purpose of paying off the outstanding portion of the 2014 Lease Revenue Bonds and
certain costs related to the issuance of the Bonds. Of the $21,960,000 originally issued, the
portion for the electric utility infrastructure ($2,314,584) has been separated and is shown as
long-term debt for Electric Fund business-type activities. The bonds mature in serial fashion
between November 2028 and November 2035 and bear interest of 5%. The bonds are not
subject to optional redemption and are subject to mandatory redemption beginning 2035. The
bonds are payable from lease payments made by the City under a project lease dated August
1, 2024, between the City and the MVPFA. The lease payments are equal to the principal and
interest on the bonds and are made by the City as rent for use of the Public Safety Building and
the City Hall, Sunnymead Park and Fire Station 99 (Morrison Park). The transaction resulted in
an economic gain of $1,328,946 ($140,071 attributable to the electric fund) and a reduction of
$1,581,175 ($166,656 attributable to the electric fund) in future debt service payments.

The annual debt service requirements for the 2024 Refunding of 2014 Lease Revenue Bonds
outstanding at June 30, 2025, are as follows:

2024 Refunding of 2014 Lease Revenue
Bonds
Year Ending June 30, Principal Interest Total
2026 $ 150,195 $ 102,752 $ 252,947
2027 156,519 95,084 251,603
2028 165,478 87,034 252,512
2029 173,383 78,563 251,946
2030 181,815 69,683 251,498
2031 - 2035 1,057,689 198,640 1,256,329
2036 245,055 6,126 251,181
Totals $ 2,130,134 $ 637,882 $ 2,768,016

Compensated Absences

At June 30, 2025, the amount of compensated absences liability totaled $350,023. Based
on the current trend of usage, $210,014 is expected to be paid within one year.

Balance Balance Due Within
July 1, 2024 Net Change June 30, 2025 One Year
Business type activities $ 238,733 $ 111,290 $ 350,023 $ 210,014
Totals $ 238,733 $ 111,290 $ 350,023 $ 210,014

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