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6.1.D. - Page 100 <br />Notes to the Basic Financial Statements <br />For the fiscal year ended June 30, 2016 <br />NOTE 9 — EMPLOYEE BENEFITS (CONTINUED) <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 contributes <br />an amount equal to 2% of the base monthly salary to a deferred compensation plan offered by the City to <br />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 net <br />book value of the City's capital assets, less the outstanding balance of any debt issued to finance these 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 cannot <br />unilaterally alter. These principally include developer fees received for use on capital projects, debt service <br />requirements, and redevelopment funds restricted to low and moderate income purposes. At June 30, 2016, <br />restricted net position for the governmental activities was $60,812,081. <br />Unrestricted describes the portion of net position which is not restricted as to use. <br />73 <br />