Agda Pkt 2026.07.27 Joint SA PFA

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City of Redwood City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 120 Note 14 – Cafeteria Benefit Plan (Continued) To obtain reimbursement of expenses incurred within a plan year within the spending accounts (items 2 or 3), employees must submit claims within 90 days of the end of the plan year or separation of service from the City, whichever occurs first. Funds unclaimed after 90 days of the close of the plan year are then remitted to the City. Note 15 – Deferred Compensation Plan City employees may defer a portion of their compensation under four separate, optional City-sponsored deferred compensation plans created in accordance with Internal Revenue Code Section 457. Under these plans, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, death, or in an emergency as defined by the plans. Effective January 1, 1998, the City signed new deferred compensation plan administration agreements with the deferred compensation providers to provide for the administration and management of employees’ deferred compensation plan assets. These agreements incorporate changes in the law governing deferred compensation plan assets which now require plan assets to be held for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these new plans are not the City’s property and are not subject to claims by general creditors of the City, they have been excluded from these financial statements. Effective January 28, 2003, the City implemented a retirement enhancement plan (401-A defined contribution plan) for certain executive management employees. In February 2005, a plan amendment was adopted to extend the 401-A plan to all members of the executive management employee classification. Under this plan, the City contributes 2% of the employees’ compensation into the 401-A plan. Effective October 1, 2002 for the Redwood City Management Employees Association, the City contributes an amount equal to 2% of the base monthly salary to a deferred compensation plan offered by the City to members of the Association. Note 16 – Other Required Disclosures A. Deficit Fund Balances/Net Position At June 30, 2025, the following funds had a fund balance (deficit), which will be eliminated through the reduction in future expenditures and/or the use of new funding sources: Fun d Fund Type Deficit Traffic Safety Fund Special Revenue Fund 1,126,775$ Redwood Shores Landscape Maintenance Fund Special Revenue Fund 16,548 Planning Cost Recovery Fund Special Revenue Fund 294,665 Parks Impact and In-Lieu Fee Fund Capital Projects Fund 189,844 Docktown Marina Fund Enterprise Fund 296,917 Internal Services Fund Internal Service Fund 16,218,463 Successor Agency Private Purpose Trust Fund Fiduciary Fund 6,233,295 The Special Revenue Fund and Internal Service Funds deficits are expected to be eliminated by future grant revenues, intergovernmental and charges for services. The Successor Agency to the Redevelopment Agency Private-Purpose Trust Funds deficit which will be eliminated by future revenues. 7.C. - Page 152 of 269 171