HomeMy WebLinkAboutNC Comprehensive Report (Finance) (71)CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(14) Fund Balance - Unassigned
To strengthen its ability to withstand unexpected financial emergencies such as may
result from national disaster, revenue shortfalls, or unanticipated expenditures of a non-
recurring nature and to accumulate funds for large scale purchases, the City had
established a policy to maintain and accumulate a General Fund Contingency Reserve.
Per the City Policy Number 201, the General Fund Contingency Reserve should be
between 25% and 50% of a single year's General Fund operating expenditures. At a
minimum, based on current year expenditures, this amount should be equal to $9 million.
It is the City's intent to assign $9 million of the unassigned fund balance for the General
Fund Contingency Reserve.
(15) Excess of Expenditures over Appropriations
Expenditures exceeded appropriations in the following fund:
Expenditures Appropriations Excess
Section 8 $9,525,592 9,454,835 (70,757)
Home 1,960,634 973,166 (987,468)
Library Bond 399,881 399,500 (381)
Joint Powers Financing
Authority 487,917 487,450 (467)
(16) Successor Agency Trust for Assets of Former Redevelopment Agency
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ("the
Bill") that provides for the dissolution of all redevelopment agencies in the State of
California. This action impacted the reporting entity of the City of Upland that previously
had reported a redevelopment agency within the reporting entity of the City as a blended
component unit.
In accordance with the timeline set forth in the Bill (as modified by the California
Supreme Court on December 29, 2011) all redevelopment agencies in the State of
California were dissolved and ceased to operate as a legal entity as of February 1, 2012.
The Bill provides that upon dissolution of a redevelopment agency, either the city or
another unit of local government will agree to serve as the "successor agency" to hold the
assets until they are distributed to other units of state and local government. On August
13, 2011, the City Council elected to become the Successor Agency for the former
redevelopment agency in accordance with the Bill as part of City resolution number
6057.
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