Page 14 - 2023 Moreno Valley Popular Annual Financial Report

LONG TERM

D E BT

Governments, just like businesses and individuals,
must finance certain purchases with debt. The key
is to match the life of the assets being purchased,
with the term of the debt payments. Accordingly,
the City’s debt is predominantly related to long-lived
capital assets.

At year-end, the City’s governmental activities had
OUTSTANDINGDEBT
$142.0 million in bonds, certificates of participation,
lease liability, SBITA, compensated absences, Pension FOR THE YEAR ENDED Governmental Business Type
and Other Post-Employment Benefits (OPEB) liability JUNE 30, 2023 Activities Activities
and self-insurance claims and judgments. FY 22/23 is
Direct Placements
the first year of recognizing SBITA liability as a result Capital leases $- $6,425,772
of implementing GASB 96. Other Debt
Lease revenue bonds 23,473,688 46,118,201
Certificates of participation 17,905,000 -
The City’s credit rating is AA- by Standard & Poor’s.
Lease liability 1,852,301 -
A key factor in achieving and maintaining the strong
SBITA 1,003,657 -
rating is the action of City Council and the City Compensated absences 6,897,968 156,958
Net pension and OPEB liability 86,853,979 2,982,714
Manager to balance the City’s General Fund budget.
Self insurance claims and judgments 4,034,000 -
$142,020,593 $55,683,645
For more information on the City’s debt program,
At year-end, the City’s governmental activities had
visit the Investor Relations page on the City’s
$114.1 million in bonds, certificates of participation,
website.
compensated absences, Pension and Other Post- DEBT PER CAPITA
Employment Benefits (OPEB) liability and self-insurance
claims and judgments. FY 21/22 is the sixth year of FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23
WHY DOES THE $500
recognizing OPEB liability as a result of implementing
CITY BORROW
GASB 75 in fiscal year 16/17.

The City’s credit rating is AA- by Standard & Poor’s. A $400
Local governments issue bonds to pay for large,
key factor in achieving and maintaining the strong
expensive, and long-lived capital projects, including
rating is the action of City Council and the City Manager $300
roads and electric utilities. Without issuing debt,
to balance the City’s General Fund budget. MILLIONS
these important infrastructure needs would be $518 $500 $489 $473 $451
unmet. While local governments can sometimes $200
For more information on the City’s debt program, visit
pay for capital investments with current revenues,
the Investor Relations page on the City’s website.
borrowing allows them to spread the costs across
$100
multiple generations due to their long-term benefit.

$0
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