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Redevelopment Agency of the City of Redwood City 6.1. B. - Page 182 Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. Fund Bnlances In t11e fund financial statenlents, fwld balances represent t11e net current assets of each fund. Net current assets generally represent a fund's cash and receivables, less its liabilities. As prescribed by GASB Statement No. 54, governnlental funds report fund balance in classifications based prinlarily on the extent to which t11e Agency is bound to honor coilstraults on the specific purposes for which anlounts in the funds can be spent. As of June 30, 2011, fwld balances for governmental fwlds are nlade up of the followuzg: Nons�endable Fund Balance - includes ainounts fllat are (a) not uz spendable fornl, or (b) legally or contractually required to be nlaintained uztact. Tl1e "not in spendable forni' criterion includes itenls tllat are not expected to be converted to cash, for exanlple: inventories, prepaid anlounts, and long-ternlloans receivable. Restricted Fund Balance - includes anlounts that can be speilt only for the specific purposes stipulated by external resource providers, constitutionally or tllrough enabling legislation. Restrictions nlay effectively be changed or lifted only with the coilsent of resource providers. Committed Fwzd Balance - includes anlounts that can only be used for t11e specific purposes deternuned by a fornlal action of the Agency's highest level of decision-nlaking authority, the Board of Directors. Conmutrnents nlay be cllanged or lifted only by t11e Agency taking the same formal action that inlposed the constraint originally. Assimled Fund Balance - comprises anlouilts intended to be used by t11e Agency for specific purposes that are neither restricted nor conlnutted. Intent is expressed by the Board of Directors or RDA Director, to which the Board of Directors has delegated the authority, to assign anlounts to be used for specific purposes. Unassi�ned Fund Balance - is the residual classification for the general fund and ulcludes all anlounts not contained u1 t11e other classifications. Unassigned amounts are technically available for any purpose. In other goverruilental funds, if expeilditures exceed anlounts restricted, conuiutted, or assigned, t11e negative amount is reflected as negative unassigned fund balance. In circuinstances w11ei1 ai1 expeilditure is nlade for a purpose for wllich anlounts are available u1 nlultiple fund balance classifications, fund balance is generally depleted in the order of restricted, conuiutted, assigned, and unassigned. G. Deficit Fund Bc�lc�nce The Redevelopnlent Agency fund 11ad a deficit fund balance of $797,568 due to the required but unplanned paynlent to the State of California as t11e State e�erienced budget difficulties, and relied on local agencies to provide financial assistance. The Redevelopment Agency has scheduled payments otrt of future tax increnlent revenue for the advances payable to otller fwlds to eliniinate the deficit fund balance created by the wlplanned paynlent to fl1e State of California. 2c;