AgdaPkt 2017-01-09 Closed and Joint

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6.1.D. - Page 70 Notes to the Basic Financial Statements For the fiscal year ended June 30, 2016 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Receivable from Successor Agency During FY 2004/05, the Capital Outlay Fund advanced $3,000,000 to the former redevelopment agency fund to fund various downtown improvements. Prior to the dissolution of the redevelopment agency, the former redevelopment agency fund repaid $730,457, leaving a balance of $2,269,453. During FY 2011/12, the redevelopment agency was dissolved and the advance payable was transferred to the successor agency private purpose trust fund. During FY 2009/10, the low and moderate income housing fund advanced $2,812,838 to the former redevelopment agency fund to partially finance the amount taken away from the redevelopment agency by the State of California. Prior to the dissolution of the redevelopment agency, the former redevelopment agency fund repaid $562,568 to the low and moderate income housing fund. During FY 2011/12, the redevelopment agency was dissolved and the advance payable was transferred to the successor agency private purpose trust fund. During FY 2011/12, the successor agency repaid $562,567 to the low and moderate income housing fund, leaving a balance of $1,687,703. P. Implementation of New GASB Pronouncements In FY 2015-16 the City adopted the following new accounting standard in order to conform to the following Governmental Accounting Standards Board Statement: GASB Statement No. 72, Fair Value Measurement and Application— This Statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Statement provides guidance for determining a fair value measurement for financial reporting purposes. This Statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. There was no impact on beginning net position as part of implementation of this accounting standard. GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68- The objective of this Statement is to improve the usefulness of information about pensions included in the general purpose external financial reports of state and local governments for making decisions and assessing accountability. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits with regard to providing decision -useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. There was no impact on beginning net position as part of implementation of this accounting standard. 43