RATINGS: Insured: S&P: “AA” Underlying: S&P: “A+” NEW ISSUE – BOOK-ENTRY ONLY See the caption “RATINGS.” In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the Authority (“Bond Counsel”), based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the Series 2016 Bonds is exempt from State of California personal income taxes. Bond Counsel observes that interest on the Series 2016 Bonds is not excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the amount, accrual or receipt of interest on, the Series 2016 Bonds. See “TAX MATTERS.” $24,655,000 MORENO VALLEY PUBLIC FINANCING AUTHORITY LEASE REVENUE REFUNDING BONDS, SERIES 2016 (TAXABLE) Dated: Date of Delivery Due: May 1, as shown on inside front cover page The Moreno Valley Public Financing Authority Lease Revenue Refunding Bonds, Series 2016 (Taxable) (the “Series 2016 Bonds”) are payable from base rental payments (the “Base Rental Payments”) to be made by the City of Moreno Valley (the “City”) to the Moreno Valley Public Financing Authority (the “Authority”) for the right to use certain real property (collectively, the “Property”) pursuant to a Master Facilities Sublease, dated as of December 1, 2015, as amended by a First Amendment to Master Facilities Sublease, dated as of December 1, 2016 (collectively, the “Facilities Sublease”), by and between the City, as sublessee, and the Authority, as sublessor. See the captions “THE PROPERTY” and “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2016 BONDS.” The Series 2016 Bonds are secured on a parity with the Moreno Valley Public Financing Authority Lease Revenue Bonds, Series 2015 (Taxable), issued in the aggregate principal amount of $10,430,000 and currently outstanding in the aggregate principal amount of $10,255,000 (the “Series 2015 Bonds”). The Series 2016 Bonds are being issued to provide funds: (i) to refund the remaining outstanding Moreno Valley Public Financing Authority 2007 Taxable Lease Revenue Bonds; (ii) to purchase a municipal bond insurance policy (the “Policy”) from Assured Guaranty Municipal Corp. (“AGM” or the “Insurer”) to guarantee the payment of principal of and interest on the Series 2016 Bonds; (iii) to purchase a municipal bond debt service reserve insurance policy (the “Reserve Policy”) from the Insurer for deposit in the Reserve Fund for the Series 2016 Bonds; (iv) to fund capitalized interest on the Series 2016 Bonds through November 1, 2017; and (v) to pay the costs incurred in connection with the issuance of the Series 2016 Bonds. See the captions “THE REFUNDING PLAN” and “SOURCES AND USES OF FUNDS.” The City has covenanted under the Facilities Sublease to take such action as may be necessary to include all Base Rental Payments and Additional Payments due thereunder in its annual budgets, and to make necessary annual appropriations for all such Base Rental Payments and Additional Payments. The City’s obligation to make Base Rental Payments is subject to abatement during any period in which by reason of any material damage or destruction (other than by condemnation) there is substantial interference with the use and occupancy of the Property by the City, in the proportion in which the cost of that portion of the Property rendered unusable bears to the cost of the whole of the Property. See the caption “RISK FACTORS — Abatement.” The Series 2016 Bonds are being issued in fully registered book-entry only form, initially registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). Interest on the Series 2016 Bonds is payable semiannually on each May 1 and November 1, commencing May 1, 2017. Purchasers will not receive certificates representing their interest in the Series 2016 Bonds. Individual purchases will be in principal amounts of $5,000 or integral multiples thereof. Principal of and interest and premium, if any, on the Series 2016 Bonds will be paid by Wells Fargo Bank, National Association, as trustee (the “Trustee”), to DTC for subsequent disbursement to DTC Participants, who are obligated to remit such payments to the Beneficial Owners of the Series 2016 Bonds. See the caption “THE SERIES 2016 BONDS — Book-Entry Only System.” The Series 2016 Bonds will be issued pursuant to a Master Trust Agreement, dated as of December 1, 2015, by and between the Authority and the Trustee (the “2015 Master Trust Agreement”), as amended by that certain First Supplement to Master Trust Agreement, dated as of December 1, 2016, by and between the Authority and the Trustee (the “First Supplement to the 2015 Master Trust Agreement,” and, together with the 2015 Master Trust Agreement, the “Trust Agreement”). The Series 2016 Bonds, the Series 2015 Bonds and any additional bonds issued pursuant to the Trust Agreement (“Additional Bonds”) are collectively referred to as the “Bonds.” The Series 2016 Bonds are subject to optional redemption and mandatory sinking fund redemption prior to maturity and extraordinary redemption from insurance or condemnation proceeds as described herein. See the caption “THE SERIES 2016 BONDS — Redemption.” The Bonds are limited obligations of the Authority and are payable, as to interest thereon, principal thereof and any premiums upon the redemption of any thereof, solely from the Revenues described herein, and the Authority is not obligated to pay them except from the Revenues. All of the Bonds are equally secured by a pledge of and charge and lien upon the Revenues, and the Revenues constitute a trust fund for the security and payment of the interest on and principal of and redemption premiums, if any, on the Bonds as provided herein. The Series 2016 Bonds are not a debt of the City, the State of the California (the “State”) or any of its political subdivisions, and neither the City, the State nor any of its political subdivisions is liable thereon, nor in any event shall the Series 2016 Bonds be payable out of any funds or properties other than those of the Authority as described herein. The Series 2016 Bonds do not constitute an indebtedness within the meaning of any constitutional or statutory limitation or restriction. The scheduled payment of principal of and interest on the Series 2016 Bonds when due will be guaranteed under an insurance policy to be issued concurrently with the delivery of the Series 2016 Bonds by ASSURED GUARANTY MUNICIPAL CORP. THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THIS ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. The Series 2016 Bonds will be offered when, as and if issued and received by the Underwriter, subject to the approval as to their validity by Orrick, Herrington & Sutcliffe LLP, Los Angeles, California, Bond Counsel. Certain legal matters will be passed upon for the City and the Authority by the City Attorney and counsel to the Authority, and by Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California, as Disclosure Counsel, for the Underwriter by Norton Rose Fulbright US LLP, for the Trustee by its counsel and for the Insurer by its counsel. It is anticipated that the Series 2016 Bonds will be available for delivery through the facilities of DTC on or about December 15, 2016. Dated: November 22, 2016 $24,655,000 MORENO VALLEY PUBLIC FINANCING AUTHORITY LEASE REVENUE REFUNDING BONDS, SERIES 2016 (TAXABLE) MATURITY SCHEDULE BASE CUSIP®†: 61685P Maturity Date Principal (May 1) Amount Interest Rate Yield Price CUSIP®† 2017 $ 855,000 1.000% 1.170% 99.935 DQ8 2018 825,000 1.500 1.630 99.823 DR6 2019 840,000 2.000 2.040 99.906 DS4 2020 850,000 2.250 2.360 99.643 DT2 2021 875,000 2.500 2.620 99.505 DU9 2022 895,000 2.750 2.910 99.206 DV7 2023 920,000 3.000 3.110 99.365 DW5 2024 945,000 3.000 3.260 98.304 DX3 2025 975,000 3.125 3.410 97.935 DY1 2026 1,005,000 3.250 3.560 97.544 DZ8 $6,875,000 4.000% Term Bond due May 1, 2032 – Yield 4.210%, Price: 97.636, CUSIP®†: EA2 $8,795,000 4.375% Term Bond due May 1, 2038 – Yield 4.590%, Price: 97.086, CUSIP®†: EB0 _________________________ † CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by S&P Capital IQ. Copyright© 2016 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. None of the City, the Authority or the Underwriter takes any responsibility for the accuracy of such numbers. No dealer, broker, salesperson or other person has been authorized by the City or the Authority to give any information or to make any representations in connection with the offer or sale of the Series 2016 Bonds other than those contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized by the City or the Authority. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Series 2016 Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. This Official Statement is not to be construed as a contract with the purchasers or Owners of the Series 2016 Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. This Official Statement and the information contained herein are subject to completion or amendment without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or the Authority or any other parties described herein since the date hereof. These securities may not be sold nor may an offer to buy be accepted prior to the time the Official Statement is delivered in final form. This Official Statement is being submitted in connection with the sale of the Series 2016 Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose, unless authorized in writing by the City. All summaries of documents and laws are made subject to the provisions thereof and do not purport to be complete statements of any or all such provisions. Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “project,” “budget,” “intend” or similar words. Such forward-looking statements include, but are not limited to, certain statements contained under the captions “CITY FINANCIAL INFORMATION” and “RISK FACTORS.” THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE CITY DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO THE FORWARD-LOOKING STATEMENTS SET FORTH IN THIS OFFICIAL STATEMENT. IN EVALUATING SUCH STATEMENTS, POTENTIAL INVESTORS SHOULD SPECIFICALLY CONSIDER THE VARIOUS FACTORS WHICH COULD CAUSE ACTUAL EVENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS. IN CONNECTION WITH THE OFFERING OF THE SERIES 2016 BONDS, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 2016 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE SERIES 2016 BONDS TO CERTAIN DEALERS, DEALER BANKS, BANKS ACTING AS AGENT AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICE STATED ON THE INSIDE COVER PAGE HEREOF, AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER. THE SERIES 2016 BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT, AND HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. The City maintains a website; however, information presented there is not a part of this Official Statement and should not be relied upon in making an investment decision with respect to the Series 2016 Bonds. Assured Guaranty Municipal Corp. (“AGM”) makes no representation regarding the Series 2016 Bonds or the advisability of investing in the Series 2016 Bonds. In addition, AGM has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding AGM supplied by AGM and presented under the caption “BOND INSURANCE” and in Appendix G—“SPECIMEN MUNICIPAL BOND INSURANCE POLICY.” CITY OF MORENO VALLEY MAYOR AND MEMBERS OF THE CITY COUNCIL Dr. Yxstian Gutierrez, Mayor Jeffrey J. Giba, Mayor Pro Tem D. LaDonna Jempson, Councilmember Jesse L. Molina, Councilmember George E. Price, Councilmember MORENO VALLEY PUBLIC FINANCING AUTHORITY Dr. Yxstian Gutierrez, Chair Jeffrey J. Giba, Vice Chair D. LaDonna Jempson, Boardmember Jesse L. Molina, Boardmember George E. Price, Boardmember STAFF Michelle Dawson, City Manager/Authority Executive Director Martin Koczanowicz, City Attorney Marshall Eyerman, Chief Financial Officer/Authority Treasurer Brooke McKinney, Treasury Operations Division Manager Ahmad R. Ansari, City Public Works Director/City Engineer Marie Macias, Interim City Clerk/Authority Secretary SPECIAL SERVICES Bond Counsel Orrick, Herrington & Sutcliffe LLP Los Angeles, California Disclosure Counsel Stradling Yocca Carlson & Rauth, a Professional Corporation Newport Beach, California Financial Advisor Fieldman Rolapp & Associates, Inc. Irvine, California Trustee Wells Fargo Bank, National Association Los Angeles, California Verification Agent Grant Thornton LLP Minneapolis, Minnesota (THIS PAGE INTENTIONALLY LEFT BLANK) TABLE OF CONTENTS Page INTRODUCTION ................................................................................................................................................ 1  General .............................................................................................................................................................. 1  Security for the Series 2016 Bonds ................................................................................................................... 1  Book-Entry Only System .................................................................................................................................. 3  Redemption ....................................................................................................................................................... 3  Bond Insurance ................................................................................................................................................. 3  Reserve Fund .................................................................................................................................................... 3  Legal Matters .................................................................................................................................................... 3  Miscellaneous ................................................................................................................................................... 3  THE SERIES 2016 BONDS ................................................................................................................................. 4  General .............................................................................................................................................................. 4  Redemption ....................................................................................................................................................... 5  Book-Entry Only System .................................................................................................................................. 7  SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2016 BONDS ............................................. 8  Pledge of Revenues ........................................................................................................................................... 8  Base Rental Payments ....................................................................................................................................... 9  Additional Payments ....................................................................................................................................... 10  Abatement ....................................................................................................................................................... 10  Substitution, Addition and Removal of Property ............................................................................................ 11  Additional Bonds ............................................................................................................................................ 12  Action on Default ............................................................................................................................................ 13  Reserve Fund .................................................................................................................................................. 14  Insurance ......................................................................................................................................................... 15  BOND INSURANCE ......................................................................................................................................... 16  Bond Insurance Policy .................................................................................................................................... 16  Assured Guaranty Municipal Corp. ................................................................................................................ 16  SOURCES AND USES OF FUNDS .................................................................................................................. 18  BASE RENTAL PAYMENT SCHEDULE ....................................................................................................... 19  THE REFUNDING PLAN ................................................................................................................................. 19  General ............................................................................................................................................................ 19  Verification ..................................................................................................................................................... 20  THE PROPERTY ............................................................................................................................................... 20  THE AUTHORITY ............................................................................................................................................ 23  THE CITY .......................................................................................................................................................... 23  General ............................................................................................................................................................ 23  Largest Employers .......................................................................................................................................... 23  Government and Administration ..................................................................................................................... 24  Risk Management ........................................................................................................................................... 25  CITY FINANCIAL INFORMATION ................................................................................................................ 25  Accounting and Financial Reporting .............................................................................................................. 25  General Economic Condition and Outlook of the City ................................................................................... 26  Budget Procedure, Current Budget and Historical Budget Information ......................................................... 26  Change in Fund Balance of the City General Fund ........................................................................................ 30  General Fund Balance Sheets of the City ....................................................................................................... 31  Property Taxes ................................................................................................................................................ 32  Sales Taxes ..................................................................................................................................................... 35  Utility Taxes ................................................................................................................................................... 35  Other Taxes ..................................................................................................................................................... 35  i TABLE OF CONTENTS (continued) Page Services ........................................................................................................................................................... 35  State of California Motor Vehicle In-Lieu Payments ..................................................................................... 36  Other Indebtedness ......................................................................................................................................... 36  Retirement Contributions ................................................................................................................................ 39  Other Post-Employment Benefits ................................................................................................................... 42  City Investment Policy .................................................................................................................................... 44  RISK FACTORS ................................................................................................................................................ 45  General Considerations – Security for the Series 2016 Bonds ....................................................................... 45  Abatement ....................................................................................................................................................... 45  Natural Disasters ............................................................................................................................................. 46  Hazardous Substances ..................................................................................................................................... 46  Other Financial Matters .................................................................................................................................. 47  Substitution, Addition and Removal of Property; Additional Bonds .............................................................. 47  Limited Recourse on Default; No Acceleration of Base Rental ..................................................................... 48  Possible Insufficiency of Insurance Proceeds ................................................................................................. 48  Limitations on Remedies ................................................................................................................................ 49  No Liability of Authority to the Owners ......................................................................................................... 50  Secondary Market ........................................................................................................................................... 50  Risks Associated with Bond Insurance ........................................................................................................... 50  STATE OF CALIFORNIA BUDGET INFORMATION ................................................................................... 51  State Budget .................................................................................................................................................... 51  Budget for State Fiscal Year 2016-17 ............................................................................................................. 51  Potential Impact of State Financial Condition on the City ............................................................................. 52  Redevelopment Dissolution ............................................................................................................................ 52  Future State Budgets ....................................................................................................................................... 54  CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS ............ 54  Article XIIIA of the State Constitution ........................................................................................................... 54  Article XIIIB of the State Constitution ........................................................................................................... 55  Proposition 62 ................................................................................................................................................. 55  Proposition 218 ............................................................................................................................................... 56  Unitary Property ............................................................................................................................................. 56  Proposition 22 ................................................................................................................................................. 57  Proposition 1A ................................................................................................................................................ 57  Proposition 26 ................................................................................................................................................. 57  Future Initiatives ............................................................................................................................................. 58  TAX MATTERS................................................................................................................................................. 58  U.S. Holders .................................................................................................................................................... 59  Non-U.S. Holders ........................................................................................................................................... 60  Foreign Account Tax Compliance Act (“FATCA”) — U.S. Holders and Non-U.S. Holders ........................ 61  FINANCIAL ADVISOR .................................................................................................................................... 61  CERTAIN LEGAL MATTERS ......................................................................................................................... 61  ABSENCE OF LITIGATION ............................................................................................................................ 62  UNDERWRITING ............................................................................................................................................. 62  RATINGS ........................................................................................................................................................... 62  CONTINUING DISCLOSURE .......................................................................................................................... 62  FINANCIAL STATEMENTS OF THE CITY ................................................................................................... 63  ii TABLE OF CONTENTS (continued) Page MISCELLANEOUS ........................................................................................................................................... 64  APPENDIX A SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS ................................................................................................................... A-1 APPENDIX B AUDITED FINANCIAL STATEMENTS OF THE CITY FOR THE YEAR ENDED JUNE 30, 2015 .................................................................................................... B-1 APPENDIX C PROPOSED FORM OF BOND COUNSEL OPINION .................................................... C-1 APPENDIX D PROPOSED FORM OF CONTINUING DISCLOSURE CERTIFICATE ....................... D-1 APPENDIX E BOOK-ENTRY ONLY SYSTEM .................................................................................... E-1 APPENDIX F GENERAL INFORMATION REGARDING THE CITY OF MORENO VALLEY AND THE REGION ........................................................................................................... F-1 APPENDIX G SPECIMEN MUNICIPAL BOND INSURANCE POLICY ............................................. G-1 iii (THIS PAGE INTENTIONALLY LEFT BLANK)