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<br />anticipated to begin in 2006 or 2007. The third and final phase, 30,000 square feet of commercial buildings that
<br />will house a restaurant and shops, is projected to break ground in 2007 or 2008.
<br />
<br />Cash Management
<br />The City treasurer invests temporarily idle funds in accordance with the state government code and the investment
<br />policy adopted by the City Council. During the year, funds were invested in certificates of deposits of banks, u.s.
<br />agency securities, corporate debt securities, u.s. government securities, the Local Agency Investment Fund of the
<br />State of California (LAIF), and the County of San Mateo investment pool. Total investment earnings during the
<br />fiscal year amounted to $4.0 million. At the end of fiscal year 2003/04, the total investments, including cash with
<br />fiscal agents, cash at banks, and petty cash, stood at $184,207,731.
<br />
<br />Redwood City's investment objectives are to maintain liquidity and to minimize credit and market risks while
<br />maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by federal depository
<br />insurance or collateralized.
<br />
<br />Risk Management and Self-Insurance Funds
<br />In July 1990, the City joined the Bay Cities Joint Powers Insurance Authority to meet its general liability insurance
<br />needs. Bay Cities is a general liability insurance pool consisting of 1 7 San Francisco Bay Area public agencies.
<br />The pool provides, through reinsurance, $1,000,000 of coverage in excess of the City's $250,000 self-insurance
<br />retention. Claims administration and loss control support to member agencies are also provided by the insurance
<br />pool. Bay Cities belongs to the California Affiliated Risk Management Authority (CARMA) which is an excess
<br />liability pool comprised of Bay Cities and five other local government insurance pools. CARMA provides
<br />coverage from $1,000,001 to $15,000,000. The layer from $1,000,001 to $4,000,000 is self-insured by CARMA,
<br />the layer from $4,000,001 to $10,000,000 is insured by a commercial insurer, and the layer from $10,000,001 to
<br />$15,000,000 is self-insured by CARMA.
<br />
<br />Appropriation Limit
<br />Article XIIIB of the California State Constitution, which became effective in the 1979/80 fiscal year, and which
<br />was modified (by Proposition 111) in November 1989, establishes, by formula, an appropriation limit for
<br />governmental agencies. Using the appropriations of fiscal year 1978/79 as the base year, the limit is modified by
<br />the change in the composite consumer price index, population, and the value of commercial property development
<br />within the City limits during each fiscal year. Article XIIIB also sets the guidelines as to what is to be included in
<br />the appropriation limits.
<br />
<br />The appropriation limit for Redwood City for the fiscal year 2003/04 is at $198,916,483 while the actual
<br />appropriations subject to the limit amounted to $48,698,362. The following graph indicates the trend in
<br />appropriations subject to limitation:
<br />
<br />.
<br />IV
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