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SAN LEANDRO REDEVELOPMENT AGENCY <br />Notes to the Financial Statements <br />For the Year Ended June 30, 2011 <br />NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) <br />Assigned fund balances are amounts constrained by the Agency's intent to be used for a specific <br />purpose, but are neither restricted nor committed. Intent is expressed by the Agency Board or its <br />designee and may be changed at the discretion of the Agency Board or its designee. This category <br />includes encumbrances; Nonspendables, when it is the City's intent to use proceeds or collections for <br />a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt <br />Service Funds which have not been restricted or committed. <br />Unassigned fund balance represents residual amounts that have not been restricted, committed, or <br />assigned. This includes the residual fund deficits, if any, of Debt Service or Capital Projects. funds. <br />Detailed classifications of the City's Fund Balances, as of June 30, 2010, are below: <br />Capital Projects Funds <br />General West Low and <br />Total <br />Debt Plaza Agency Joint San Leandro Moderate <br />Governmental <br />Fund balances: Service Fund Project Area Project Area Project Area Housing <br />Funds <br />Nonspendable $2,475,000 <br />$2,475,000 <br />Restricted for: <br />Low and moderate income <br />housing activities $3,114,300 <br />3,114,300 <br />Debt service $4,948,964 <br />4,948,964 <br />Capital projects: <br />Plaza project area $1,019,797 <br />1,019,797 <br />Agency joint project area $5,764,606 <br />5,764,606 <br />West San Leandro <br />project area 1,480,017 <br />1,480,017 <br />$4,948,964 $1,019,797 $5,764,606 $3,955,017 $3,114,300 <br />$18,802,684 <br />K. Use of Estimates <br />The preparation of financial statements in conformity with generally accepted accounting principles <br />requires management to make estimates and assumptions that affect certain reported amounts and <br />disclosures. Accordingly, actual results could differ from those estimates. <br />L. Budgets and Budgetary Accounting <br />The Agency adopts a budget annually to be effective July 1 for the ensuing fiscal year. Budgeted <br />expenditures are adopted through the passage of a resolution. This resolution constitutes the maximum <br />authorized expenditures for the fiscal year and cannot legally be exceeded except by subsequent <br />amendments of the budget by the Agency Board. <br />An operating budget is adopted each fiscal year for the Debt Service Fund. Public hearings are <br />conducted on the proposed budgets to review all appropriations and sources of financing. Capital <br />projects are budgeted by the Agency Board over the term of the individual projects. Since capital <br />projects are not budgeted on an annual basis, they are not included in the budgetary data. <br />33 <br />