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Approve the Recognition of Revenue and Transfer of Certain Unclaimed Deposits <br />From the City Agency Funds and the Water Enterprise Fund <br />July 2, 2019 <br />Page 12 <br />The Departments noted above confirmed that no records exist to determine the nature of the <br />accounts, and/or to confirm if deposits were accepted to provide a service. To ensure the public <br />was aware of the existence of unclaimed deposits on file with the City, FMSA staff published a <br />Public Notice in April 2018 in accordance with the applicable Government Code Sections. No <br />claims were filed with the City, and staff requested City Council action to recognize these deposits <br />as City revenue in June 2018. However, staff was advised by the City Council to expand its due <br />diligence efforts. <br />Due Diligence Efforts — FY 2018-19 <br />FMSA staff continued working with other departments to gather information during fiscal year <br />2018-19. The departments confirmed that either the City had provided a service, or due to <br />change in financial software, no corresponding records are readily available. <br />FMSA staff published a second Public Notice in accordance with the relevant Government Code <br />Section on April 27 and May 4, 2019 (see Exhibit 1). The City did not receive any claims (the <br />cut-off was June 11, 2019 or 45 days from Public Notice). As a result, the unclaimed deposits <br />held by the City are now eligible to be recorded as City revenue. <br />In addition, FMSA staff has developed an Unclaimed Funds Policy (Policy) for distribution to all <br />City Staff. The Policy outlines the treatment of funds when they are considered unclaimed, along <br />with the process in notifying the public the existence of the said funds. <br />If City Council approves the staff recommendation, the following actions will be taken <br />Recognize Revenue in the Water Enterprise Fund <br />Unclaimed deposits related to Water Services, in the amount of $529,796.45 will be recorded as <br />revenue in the Water Enterprise Fund. The funds were accepted by the Water Department from <br />contractors to allow the use of City water during a construction project within the City limits. <br />Transfer to General Fund <br />Unclaimed deposits in the amount of $399,606.30 will be recorded as revenue in the General <br />Fund, in accordance with the Government Code section 50053. The funds become property of <br />the City when the funds remain unclaimed after two (2) Public Notice filings. <br />Transfer to City Services Fund (Fund 053) <br />The City Services Fund (Fund 053) was established in July 2017 as a means for City departments <br />to continue accepting deposits on behalf of outside parties commonly referred to as pass-thru <br />activities. The activity previously recorded in the Treasurer's Trust (Fund 098) will be recorded <br />in the City Services Fund going forward. Departments are aware that established accounts within <br />the City Services Fund will require documentation identifying the source of deposits (e.g. date, <br />name of the party, and amount), to avoid the accumulation of stale deposits in the future. Active <br />deposits with proper documentation will be transferred from Fund 098 to Fund 053, and Fund <br />098 will be closed. <br />65A-2 <br />