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<br />
<br />,. .., NOTE':'.- EMPI:OYEE BENEFITS (CONTINUED) .
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<br />3), employees must submh clainls within 90 days of the end of the plan year ,or separation of service from.
<br />the City~ whichever occurs first. Funds unclaimed after. 90 days ,of the :c1oseof the plan year are the~,
<br />. . remitted; to the <;::i~y.
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<br />D,' : Deferred ComPensation 'P/an~ ,
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<br />City employees may defer a: portion of their compensation under four separate, .optional City-sponsored
<br />deferred compensation plans created .in accordance with Internal Revenue Code Section 1457. Under
<br />:. these pfans, participants are not taxed on the deferred ponion.of their. compensation until distributed to
<br />them; distribut~ons may be made.only at termination, retirement," death, or in an emergency.as defined by
<br />the plans.. , .
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<br />. .
<br />
<br />Effective January '.l~ .1,998. 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 conlpensation plan assets~ These agreements. incorporate changes in the law.
<br />.governing deferred conipensation, plan. assets which .now require plan- aSsets to be held for theexcllis.ive
<br />benefit of plan 'participants :and their beneficiaries. Since the assets held under :these .new plans are not. .:
<br />the City~s property arid ~re not subject to claims hygeneral creditors of the City.: they hav~been ex.cluded ..
<br />froin these.fitlancial statements. ...'
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<br />.,. . ." .
<br />. .
<br />.. Effectiv~ : ja~uary' 2:8;.. .2003~ th~. .City i.mplem~nted a retirement . enh~cement .pl~' (40 t -A defined
<br />contribution plan) for certain. executive management employees. In February 2005, a plan amendment
<br />was' adopted. to extend-the 401-A .pl~ to all members of the e~ecutjve .management employees. Under' .
<br />. this plan, the:City contributes 2% of the .employees', compensation)nto the 401-A plan.
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<br />. .' :':" .' .'
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<br />.: : Effective October 1,' 2002 for the Redwood City Ma,nagement Emplo~ees. Assodation, and effective
<br />.September l~ 2003 for the Police Sergeants Association, the. City .contributes an, amount equal ~o 2% of ,
<br />the base monthly salary to a.deferred-compensation plan' offered by th~ City... . '
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<br />NOTE 10 - NET ASSETS AND FUN-D BALANCES
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<br />, ' .
<br />GASa StatemenfNo. .34 adds:the:concept of net assets,~ which is measured on the full accruaJ:'ba:sis~ ~o
<br />. the ~oncept of furid b~lI,ance) .which is measured .on :th~ ~od;ifieff .a~crual ba~is. . , .
<br />
<br />: A~ . , Net Asset...
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<br />. Net a~sets ar~. the e~ce~: of ~ll the ~ it)" s ~sset~ :over all 'its Haoilities~ r~gardle~s of fund. Net assets are
<br />divided into three' captions: under GASH 'Statement No. 34. These captions apply only to net. assets,
<br />which is determined only at the government-wide level and are;describe!d:below: .
<br />
<br />
<br />. '
<br />
<br />Invested in capital asset~: .net oj related debt. describes the portion. of net assets Which is represented by the.
<br />: current net book :valueof the .City'.s capital assets, less "the outstanding balance of any debt issued to finance..
<br />. .,..these assets..'. . ! . . '... .
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<br />. . . .
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<br />· Restricted. describe~" 'the portion of net' :~set:s ,which is resp-icted :as to .use by ,the. terms; ~nd conditions of
<br />agreements with outside, parties, governmental regulations, laws, or other ,re'strictions which the City cannot
<br />: 'unilaterally alter~ ,These principally include developer fees.received fOT use on capital projects, debt service. .
<br />.. requirements. and redevelopment funds restricted to 'low and moderate:jncome purposes.
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<br />. .. . .
<br />
<br />, rInrescricied d~scribes th~; p'oiti~n. of net assets .which: is not restricted as to use~
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<br />. :. \ ,,: '.' i .;; ~. 10
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