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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 />123 <br />Note 18 – Net Investment in Capital Assets <br /> <br />Net Investment in Capital Assets at June 30, 2025 consisted of the following: <br /> <br />Governmental Business-Type <br />Activities Activities <br />Net investment in capital assets: <br />Capital assets, nondepreciable 165,029,896$ 23,496,985$ <br />Capital assets, depreciable/amortizable, net 198,479,119 233,397,502 <br />Unspent bond proceeds on capital-related debt 4,760,663 - <br />Deferred amount on refunding on capital-related debt - (569,347) <br />Capital-related liabilities: <br />Retention payable (528,385) <br />Lease liability - (3,337,627) <br />Subscription liability (1,042,545) (191,572) <br />Bonds payable (60,697,569) (38,669,208) <br />Total net investment in capital assets 306,529,564$ 213,598,348$ <br /> <br /> <br />Note 19 ‒ Adjustments and Restatements of Beginning Balances <br /> <br />During the current year, the City implemented GASB Statement No. 101, Compensated Absences. In addition to the <br />value of unused vacation time owed to employees upon separation of employment, the City now recognizes an estimated <br />amount of sick leave earned as of year-end that will be used by employees as time off in future years as part of the <br />liability for compensated absences. The effects of the change in accounting principle are summarized below in the <br />“Restatement – GASB 101 implementation” column in the table below. <br /> <br />Due to a decrease in the amount of fees being received, the City determined that the Parking Enterprise Fund no longer <br />meets the quantitative criteria for major enterprise fund reporting. Accordingly, beginning in the current fiscal year, <br />the Parking Enterprise Fund are reported as a nonmajor enterprise fund. The effect of this change in fund classification <br />is presented in the column titled “Adjustment – Major and Nonmajor Fund Reclassification” in the table below. Due to <br />an increase in the amount of grants being received, the City determined that the Transportation Grants Special Revenue <br />Fund now meets the quantitative criteria for major governmental fund reporting. Accordingly, beginning in the current <br />fiscal year, the Transportation Grants Special Revenue Fund is reported as a major governmental fund. The effect of <br />this change in fund classification is presented in the column titled “Adjustment –Major and Nonmajor Fund <br />Reclassification” in the table below. <br /> <br />During the current fiscal year, the City determined that there were certain errors in the beginning fund balance and net <br />position relating to the GASB 84/87 implementation, understated construction in progress, incorrect receivable and <br />unearned revenue balances, overstated PERS payable liability, and redevelopment agency (RDA) dissolution misstated <br />loan interest receivable and loan payable. <br />7.C. - Page 155 of 269 <br />174