Page 7 - 2020 Popular Annual Financial Report
P. 7
about GENERAL FUND
moreno reserves & unassigned
VALLEY FUND BALANCE
Moreno Valley has been previously ranked as one of the most fiscally strong cities in the nation. This is due in part to the adoption of a
comprehensive financial reserve policy. Financial reserves protect against future economic downturns, which bring unpredictable shortfalls in
tax revenue, and better prepare the City, its residents and its businesses for a catastrophic natural disaster.
The General Fund had $25.6 million in unassigned fund balance, an increase of $3.5 million in comparison with the prior year. This was primarily
due to capital outlay delayed to next fiscal year and current expenditure savings.
The local responses to the COVID-19 pandemic implemented by both the State Of California and Riverside County have been a shock to the local
economy. In response to the “Safer at Home” Executive Order issued by Governor Newsom, City staff took a proactive approach to address
potential revenue impacts. During the last quarter of the fiscal year, City staff prepared a series of cost cutting measures to be prepared for the
impact of potential declines in local taxes and the overall effect that the pandemic could have on the local economy due to the broad measures,
most notably the impact on jobs. These proactive measures have reduced the need to utilize reserves to balance the budget.
general fund reserves & UNASSIGNED FUND BALANCE
36%
Unassigned
FY 19/20 FUND BALANCE
Economic Uncertainty Reserve $11,160,460
29% Operating Reserve Stabilization $13,392,552
Other Unassigned $25,641,999
Categories
16% Other Categories $20,275,804
Economic Total Fund Balance $70,470,815
Uncertainty
Reserve
19%
Operating
Reserve
Stabilization
terms
Economic Uncertainty Reserve - established at a minimum of 10% of the General Fund’s current operating expenditures. These funds
are to be used during times of severe economic distress such as recessionary periods, State raids on local resources, or other impactful
unforeseen events which greatly diminish the financial ability of the City to deliver core services.
Operating Reserve Stabilization- established for the purpose of providing funds for an urgent catastrophic event or major disaster that
affects the safety of residents, employees, or property (e.g. earthquake, wildfires, terrorist attack, etc.)
Unassigned – Established to protect against cash flow shortfalls related to timing of projected revenue receipts and to maintain budgeted
level of services.
City of Moreno Valley | 7
