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City of Redwood City <br />Notes to the Basic Financial Statements (Continued) <br />For the Year Ended June 30, 2025 <br /> <br /> <br />62 <br />Note 1 – Summary of Significant Accounting Policies (Continued) <br /> <br />A. Financial Reporting Entity (Continued) <br /> <br />Blended Component Units (Continued) <br /> <br />The Port of Redwood City was established under the City Charter as a department of the City and is managed by <br />the Port Commission of Redwood City, whose members are appointed by the City Council and essentially same as <br />the City. This commission is a semi-autonomous body and has full authority to manage the Port. Its financial system <br />is maintained separately from the City by the Port’s own financial staff. The Port’s treasurer and legal counsel are <br />the City’s Finance Director and the City Attorney, respectively. The financial transactions of the Port are <br />incorporated as an enterprise fund. Financial statements for the Port of Redwood City may be obtained from the <br />Port at 675 Seaport Blvd., Redwood City, CA 94063. <br /> <br />B. Basis of Presentation, Accounting and Measurement Focus <br /> <br />The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting <br />entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that <br />comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues <br />and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose <br />and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. <br />The minimum number of funds is maintained in accordance with legal and managerial requirements. <br /> <br />Government-Wide Financial Statements <br /> <br />The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of <br />Activities and Changes in Net Position. These statements present summaries of governmental and business-type <br />activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these <br />statements. <br /> <br />These financial statements are presented on an “economic resources” measurement focus and the accrual basis of <br />accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure <br />assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of <br />Activities presents changes in net position. <br /> <br />Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while <br />expenses are recognized in the period in which the liability is incurred. Under the accrual basis of accounting, <br />revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities, and deferred inflows of <br />resources resulting from exchange and exchange-like transactions are recognized when the exchange takes place. <br />Revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities and deferred inflows of <br />resources resulting from non-exchange transactions are recognized in accordance with the requirements of U.S. <br />GAAP. <br /> <br />Program revenues include charges for services, special assessments, and payments made by parties outside of the <br />reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted <br />with program expenses in the statement of activities to present the net cost of each program. Program revenues for <br />the City are classified in three categories: <br /> <br /> Charges for services <br /> Operating grants and contributions <br /> Capital grants and contributions <br />7.C. - Page 94 of 269 <br />113