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7.1.A. - Page 100
<br /> Notes to the Basic Financial Statements
<br /> For the year ended June 30, 2014
<br /> NOTE 13 — RISK MANAGEMENT AND SELF- INSURANCE FUND (CONTINUED)
<br /> Changes in the self- insurance fund's claims payable liability for fiscal years ended 2012, 2013, and 2014
<br /> were:
<br /> Beginning Current Year Claims/ Claim Ending
<br /> Balance Changes in Estimates Payments Balance
<br /> $ $ S $
<br /> 2011 -12 10,951,960 2,407,125 (1,580,295) 11,778,790
<br /> 2012 -13 11,778,790 4,732,771 (3,111,209) 13,400,352
<br /> 2013 -14 13,400,352 7,617,770 (2,563,399) 18,454,723
<br /> Settlements have not exceeded coverage for each of the past three fiscal years.
<br /> NOTE 14 — DISSOLUTION OF THE REDWOOD CITY REDEVELOPMENT AGENCY
<br /> As part of the FY 2011 -12 State Budget package, and in an effort to help solve the State's budget
<br /> problems, the California legislature enacted and the Governor signed two companion bills addressing
<br /> redevelopment, AB X1 26 (Dissolution Act) and AB X1 27 (Voluntary Program Act), which took effect on
<br /> June 29, 2011.
<br /> The Dissolution Act immediately suspended all new redevelopment activities and incurrence of
<br /> indebtedness, and eliminated redevelopment agencies as of October 1, 2011.
<br /> The Voluntary Program Act allows the community that created the redevelopment agency to avoid
<br /> dissolution by opting to pay a substantial community remittance beginning FY 2011 -12 and each year
<br /> thereafter.
<br /> On July 18, 2011, the California Redevelopment Association, the League of California Cities, and others
<br /> filed a Petition for Writ of Mandate in the Supreme Court of the State of California (California
<br /> Redevelopment Association, et al. v. Ana Matosantos, et al., Case No. 5194861), challenging the
<br /> constitutionality of the companion bills, the Dissolution Act, and the Voluntary Program Act, on behalf
<br /> of cities, counties, and redevelopment agencies, and requesting a stay of their enforcement.
<br /> On December 29, 2011, the California Supreme Court upheld the Dissolution Act and found the
<br /> Voluntary Program Act to be unconstitutional and extended the date of dissolution to February 1, 2012.
<br /> The Dissolution Act provides that upon dissolution of a redevelopment agency, either the city or
<br /> another unit of local government will agree to serve as the "successor agency" to hold the assets until
<br /> they are distributed to other units of state and local government. The City Council elected to become
<br /> Successor Agency on August 22, 2011 with resolution 15141, and reconfirmed this action on January 23,
<br /> 2012 with resolution 15164.
<br /> Under the Dissolution Act, redevelopment agencies in the State of California cannot enter into new
<br /> projects, obligations, or commitments. Subject to the control of a newly established oversight board,
<br /> remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution
<br /> (including the completion of any unfinished projects that were subject to legally enforceable contractual
<br /> commitments).
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