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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 />74 <br />Note 1 – Summary of Significant Accounting Policies (Continued) <br /> <br />S. Property Tax <br /> <br />Property taxes attach as an enforceable lien on property as of January 1, and are collected for a 12 month period <br />effective July 1 by the San Mateo County tax collector. Taxes are billed once a year in late October and are payable <br />in two equal installments due by December 10 and April 10 of the following year. The taxes not paid by those dates <br />are subject to a penalty of 10%. <br /> <br />In September of 1993, the County of San Mateo Board of Supervisors adopted the “Teeter Plan” for secured <br />property taxes. Under the Teeter Plan, the state law allows the county to advance to the cities all property taxes <br />billed, regardless of whether the taxes have been paid. The county then is entitled to keep all penalties and interest <br />accruing on delinquent taxes. Property taxes on unsecured taxable property are not affected by this change. <br /> <br />T. Use of Accounting Estimates <br /> <br />The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates <br />and assumptions, in some cases when applicable, that affect the amounts in the financial statements and the <br />accompanying notes. Actual results could differ from the estimates. <br /> <br />U. Implementation of New GASB Pronouncements for the Year Ended June 30, 2025 <br /> <br />The requirements of the following accounting standards are effective for the purpose of implementation, if <br />applicable to the City, for the year ended June 30, 2025. The financial statements included herein apply the <br />requirements and provisions of these statements, including necessary retroactive adjustments to financial statement <br />classifications and presentations. <br /> <br />GASB Statement No. 101 – In June 2022, GASB issued Statement No. 101, Compensated Absences. The <br />objective of this Statement is to better meet the information needs of financial statement users by updating the <br />recognition and measurement guidance for compensated absences. That objective is achieved by aligning the <br />recognition and measurement guidance under a unified model and by amending certain previously required <br />disclosures. Implementation of this Statement had a significant effect on the City's financial statements for the <br />fiscal year ended June 30, 2025. See Note 19. <br /> <br />GASB Statement No. 102 – In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. <br />This Statement requires a government to assess whether a concentration or constraint makes the primary <br />government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk <br />of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events <br />associated with a concentration or constraint that could cause the substantial impact have occurred, have begun <br />to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are <br />issued. Implementation of this Statement did not have a significant effect on the City's financial statements for <br />the fiscal year ended June 30, 2025. <br />7.C. - Page 106 of 269 <br />125