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City of Redwood City 6.1.E. - Page 98 <br /> Notes to the Basic Financial Statements <br /> For the year ended June 30, 2015 <br /> NOTE 9—EMPLOYEE BENEFITS(CONTINUED) <br /> to them; distributions may be made only at termination, retirement, death, or in an emergency as <br /> defined by the plans. <br /> Effective January 1, 1998, the City signed new deferred compensation plan administration agreements <br /> with the deferred compensation providers to provide for the administration and management of <br /> employees' deferred compensation plan assets. These agreements incorporate changes in the law <br /> governing deferred compensation plan assets which now require plan assets to be held for the exclusive <br /> benefit of plan participants and their beneficiaries. Since the assets held under these new plans are not <br /> the City's property and are not subject to claims by general creditors of the City, they have been <br /> excluded from these financial statements. <br /> Effective January 28, 2003, the City implemented a retirement enhancement plan (401-A defined <br /> contribution plan) for certain executive management employees. In February 2005, a plan amendment <br /> was adopted to extend the 401-A plan to all members of the executive management employee <br /> classification. Under this plan, the City contributes 2% of the employees' compensation into the 401-A <br /> plan. <br /> Effective October 1, 2002 for the Redwood City Management Employees Association, the City <br /> contributes an amount equal to 2% of the base monthly salary to a deferred compensation plan offered <br /> by the City to members of the Association. <br /> NOTE 10—NET POSITION AND FUND BALANCES <br /> GASB Statement No. 63 adds the concept of net position, which is measured on the full accrual basis, to <br /> the concept of fund balance, which is measured on the modified accrual basis. <br /> A. Net Position <br /> Net position is the excess of all the City's assets over all its liabilities, regardless of fund. Net position is <br /> divided into three captions. These captions apply only to net position, which is determined only at the <br /> government-wide level and are described below: <br /> Net investment in capital assets describes the portion of net position which is represented by the current <br /> net book value of the City's capital assets, less the outstanding balance of any debt issued to finance these <br /> assets. <br /> Restricted describes the portion of net position which is restricted as to use by the terms and conditions of <br /> agreements with outside parties, governmental regulations, laws, or other restrictions which the City <br /> cannot unilaterally alter. These principally include developer fees received for use on capital projects, debt <br /> service requirements, and redevelopment funds restricted to low and moderate income purposes. At <br /> June 30, 2015, restricted net position for the governmental activities were $57,862,400. <br /> Unrestricted describes the portion of net position which is not restricted as to use. <br /> 69 <br />