RPVCCA_SR_2011_06_21_Q_Unclaimed_DepositsCrrvOF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Staff Coordinator:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCI~
DENNIS McLEAN,DIRECTOR OF FINANCE &INFORMATION C£
TECHNOLOGY
JUNE 21,2011
UNCLAIMED DEPOSITS /"1\n
CAROLYN LEHR,CITY MANAGER \!Y-.
Kathryn Downs,Deputy Director of Finance &Information
Technology
RECOMMENDATION
Approve the transfer of $26,708.56 from the Trust Deposits Excess Funds account to the
General Fund.
DISCUSSION
The City requires cash deposits for certain services performed by Staff and its third-party
vendors.Examples include grading plan reviews,development inspections,and traffic
control plan reviews.Once a property owner or developer completes a project,the trust
deposit is closed and any remaining money is refunded to the depositor.Over the years,
some refund attempts have resulted in un-cashed checks that have been returned to the
City.After unsuccessful attempts to refund the balance of trust deposits,the money is
transferred to an Excess Funds account to await a future claim from the original depositor.
If the person who deposited the funds does not contact the City to recover the funds,then
the City may follow the processes set forth in the Government Code so that the funds
become the City's property and may be transferred to the general fund by the City Council.
(Government Code Section 50053.)
The City currently has $26,708.56 that has been held in the Excess Funds account since
before 1999.Because of the age of the deposits and the fact that the City's prior attempts
to reach these depositors were unsuccessful,Staff recommends that these funds be
transferred to the General Fund pursuant to the provisions of Government Code Section
50050 et seq.Section 50050 allows unclaimed funds that have been held by a local
agency for a period of at least three years to be transferred to its general fund,provided
that notice is first published in a newspaper of general circulation.Following the notice
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UNCLAIMED DEPOSITS
June 21,2011
Page 2 of 2
period,if no claim is made,then the funds can be transferred to the general fund.
The procedure that is established by the Government Code (Section 50050,et seq.)to
allow unclaimed funds that are held by a local governmental entity to be transferred to the
agency's general fund is exempt from the provisions of the Unclaimed Property Law
(California Code of Civil Procedure Section 1500 et seq.)whereby property or funds
escheat to the State.Specifically,CCP Section 1502(a)states:
"(a)This chapter does not apply to any of the following:
"(2)Any property in the official custody of a local agency if such property
may be transferred to the general fund of such agency under the provisions of Sections
50050-50053 of the Government Code."
The Government Code establishes a special procedure in the case of small trust deposits
or in circumstances when the depositor's name is unknown,which is the case with the
deposits that are before the City Council this evening.Specifically,California Government
Code Section 50055 states:
"Any other provision of this article notwithstanding,any individual items of less than fifteen
dollars ($15),or any amount if the depositor's name is unknown,which remain unclaimed in the
treasury or in the official custody of an officer of a local agency for the period of one year or upon
an order of the court may be transferred to the general fund by the legislative body without the
necessity of publication of a notice in a newspaper."
As the depositors'names are unknown,and the deposits have been held for periods far
exceeding one year,the City Council may approve transfer of this money to the General
Fund pursuant to Government Code Section 50055.
ADDITIONAL INFORMATION,
The City's Excess Funds account also holds 62 other deposits totaling $34,135.69.The
names of the original depositors are known,and the ages of the deposits range from 3 to
12 years.The City previously attempted to contact the depositors individually by mail,but
received no response.As discussed above,California Government Code Sections 50050
and 50051 provide procedures to notify the public about the existence of these funds,and
if no claims are made,the monies may be transferred to the General Fund.Legal
advertisements were published in the Palos Verdes Peninsula News on May 26 th and June
2nd with the list of 62 deposits totaling $34,135.69.If no claims are made by July 14,2011,
at 4:30pm,Staff will bring an agenda item before the City Council to transfer any of the 62
deposits that remain unclaimed to the General Fund.
FISCAL IMPACT
If the City Council approves the recommended transfer of $26,708.56,the Estimated
General Fund Reserve at June 30,2011 will be $9,159,835 (see Attachment A).As the
Trust Deposits Fund does not have an annually adopted budget,there is no budget
adjustment required for this transfer.Q-2
FY10-11 Statement of Estimated General Fund Reserves
Adjustments:
Beginning
Reserves Revenues Expenditures
Attachment A
Ending
Net Transfers Reserves
""""">':":1O:;$S:'t~:·
FAA Consultant for Proposed Class C Airspace
Change
FY09-10 Year-End Adjustments
CDBG Reallocation
Proposition A Exchange with the City of Rolling
Hills
March Special Election Cost
FY09-10 Final Results
Midyear Financial Report
GASB 54 Implementation
View Restoration Mediator
Sewer Relocation at PVDE Switchbacks
Trust Deposit Excess Funds Transfer
8/17/2010
91712010
91712010
9/21/2010
10/5/2010
2/1/2011
2/15/2011
4/19/2011
5/3/2011
6/7/2011
6/21/2011
61,610
418,087
1,005,000
(15,000)
(48,750)
(80,000)
47,120
(7,000)
60,000
(2,652,000
289,867
211,000)
26,709
Column Headin Definitions
Action Date is the date City Council adopted the bud et or a roved an adjustment to the bud et.
Be innin Reserves are the budgeted 7/1/10 General fund reserves at the time of bud et ado tion.
Revenues include the originally adopted revenue budget and subsequent adjustments.When staff becomes aware that revenues are expected to
significantly deviate from the ado ted budget,an adjustment is presented to the City Council for approval.
Expenditures include the originally adopted expenditure budget and subsequent adjustments.When staff becomes aware that expenditures of a program
are expected to significantly deviate from the adopted budget,an adjustment is presented to the City Council for approval.
Net Transfers include both operating transfers from and to the General fund.Originally budgeted Net Transfers are adjusted when staff becomes aware that
an additional 0 eratin transfer is needed to satisfy an unantici ated shortfall within another fund;and that shortfall must be funded with General fund monies.
Ending Reserves are the estimated 6/30/10 General fund reserves at the time of budget adoption.Adjusted Ending Reserves is a calculation based on
subse uent ad'ustments to Be innin Reserves,Revenues,Ex enditures and Net Transfers.
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