Page 7 - 2021 Popular Annual Financial Report

reserves & unassigned

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 GENERAL FUND RESERVES
shortfalls in tax revenue, and better prepare the City, its & UNASSIGNED FUND BALANCE
residents and its businesses for a catastrophic natural
disaster. general fund
44%
Unassigned
The General Fund had $38.2 million in unassigned fund
balance, an increase of $12.6 million in comparison
with the prior year. This was primarily due to a delay
in spending related to capital outlay and contractual 26%
Other
services as a result of the pandemic. Categories
14%
Economic
Uncertainty
Reserve
16%
Operating
Reserve
Stabilization

terms FY20/21 FUND BALANCE

Economic Uncertainty Reserve $11,904,874
Economic Uncertainty Reserve - These funds are to be Operating Reserve Stabilization $14,285,848
used during times of severe economic distress such as Unassigned $38,201,342
recessionary periods, State raids on local resources, or
other impactful unforeseen events which greatly diminish Other Categories $22,193,290
the financial ability of the City to deliver core services. Total Fund Balance $86,585,354

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.

*Unemployment rate as of 6.30.20. Reflects impacts due to COVID-19.

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