Page 14 - Moreno Valley 204 PAFR

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Governments, just like businesses and individuals, must important factor in determining the interest rate on bonds. A
finance certain purchases with debt. The key is to match the strong credit rating allows the City to borrow funds at lower
life of the assets being purchased, with the term of the debt interest rates, reducing the cost of financing infrastructure
payments. Accordingly, the City’s debt is predominantly projects and other capital investments.
related to long-lived capital assets.
For more information on the City’s debt program, visit the
At year-end, the City’s governmental activities had $141.2 Investor Relations page on the City’s website.
million in bonds, certificates of participation, lease liability,
SBITA, compensated absences, Pension and Other Post-
Employment Benefits (OPEB) liability and self-insurance wHy doES tHE City Borrow
claims and judgments. FY 23/24 is the first year implementing Local governments issue bonds to pay for large, expensive,
GASB 101. and long-lived capital projects, including roads and electric
utilities. Without issuing debt, these important infrastructure
The City’s credit rating is AA- by Standard & Poor’s. A key needs would be unmet. While local governments can
factor in achieving and maintaining the strong rating is the sometimes pay for capital investments with current
action of City Council and the City Manager to balance the revenues, borrowing allows them to spread the costs across
City’s General Fund budget. The credit rating is the most multiple generations due to their long-term benefit.

DEBT PER CAPITA outStanding dEBt For tHE yEar EndEd
JunE 30, 2024
Govern- Business-
$500 mental type
Activities Activities

$400 Direct Placements
Notes and Other $ - $ 5,936,832
millions $300 $500 $489 $473 $451 $432 Other Liabilities $ 22,103,884 $ 44,518,578 -
Lease revenue bonds
$ 14,882,250
$
Certificates of participation
$200 Lease liability $ 1,447,679 $ -
SBITA liability $ 1,115,005 $ -
Compensated absences $ 9,671,015 $ 238,733
$100 Net pension and OPEB
liability $ 87,429,570 $ 3,002,479
Self-insurance claims and
$0 judgments $ 4,540,000 $ -
FY FY FY FY FY
19/20 20/21 21/22 22/23 23/24 $ 141,189,403 $ 53,696,622

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