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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 />125 <br />Note 20 – Commitments and Contingencies (Continued) <br /> <br />C. Encumbrances and Contractual Commitments <br /> <br />The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds. <br />Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded <br />in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as <br />restricted, committed or assigned fund balance, depending on the classification of the resources to be used to <br />liquidate the encumbrance, since they do not constitute expenditures or liabilities. Outstanding encumbrances at <br />year-end are automatically reappropriated for the following year. <br /> <br />Unencumbered and unexpended appropriations lapse at year-end. Purchase orders are issued throughout the fiscal <br />year to encumber the budgets in the governmental funds. Following are the outstanding encumbrances as of <br />June 30, 2025: <br /> <br />Encumbrances <br />Major Funds: <br />General Fund 7,858,989$ <br />Transportation Grants Fund 5,874,755 <br />Capital Outlay Fund 5,937,292 <br />Total Major Funds 19,671,036 <br />Non-Major Funds 22,372,760 <br />Total encumbrances 42,043,796$ <br /> <br />The City has capital contractual commitments for which funds have been encumbered as of June 30, 2025. <br />Encumbrances related to capital projects are funded through the current year appropriated budget, which carries <br />over to the following year. <br /> <br />The following is a list of the commitments at June 30, 2025: <br /> <br />Remaining <br />Contractual <br />Project Commitment <br />101/84 Interchange Project 4,561,694$ <br />Downtown and Central Redwood City Plan Project 2,301,370 <br />Tractor Drawn Aerial Fire Truck Purchase 2,241,680 <br />2024 Curb Ramp Project 951,846 <br />Water Supply FY 24-25 Purchase 2,847,566 <br />Water Supply FY 23-24 Purchase 1,800,483 <br />Pump Station Improvement Project 1,114,755 <br />Sanitary Sewer Pump Station 8 & 9 Improvements Project 874,340 <br />Combination Sewer Cleaners Purchase (2)713,207 <br />Total contractual commitments 17,406,941$ <br />7.C. - Page 157 of 269 <br />176