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City of San Leandro
<br />Required Supplementary Information
<br />For the year ended June 30, 2012
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<br />105
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<br />1. BUDGETS AND BUDGETARY ACCOUNTING
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<br />The City adopts a budget annually for all governmental fund types. This budget is effective July 1 for the ensuing
<br />fiscal year. From the effective date of the budget, which is adopted and controlled at the department level, the amounts
<br />stated therein as proposed expenditures become appropriations to the various City departments. The City Council may
<br />amend the budget by resolution during the fiscal year. The City M anager is authorized to transfer budgeted amounts
<br />between departments and line items within any fund; however, any revisions which alter the total expenditures of any
<br />fund must be approved by the City Council. Transfers between funds must be approved by the City Council. All
<br />appropriations lapse at year-end, unless otherwise authorized by the City Council and the City Manager, except for
<br />capital improvement funds for which appropriations endure until the project is completed.
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<br />Annual budgets are adopted on a basis consistent with generally accepted accounting principles except for capital
<br />projects funds, which are adopted on a project length basis, which means budgets, are used until the project’s
<br />completion for the entire project amount.
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<br />Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditures of monies are
<br />recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an
<br />extension of the formal budgetary process. Encumbrances outstanding at year-end are carried over to the next fiscal
<br />year as part of that year’s budget resolution.
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<br />GAAP serves as the budgetary basis of accounting.
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<br />2. PENSION PLANS SCHEDULE OF FUNDING PROGRESS – PERS
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<br />Public Employees Retirement System Pension plan consist of annual actuarial valuation of assets for both safety and
<br />miscellaneous employees of the City. Note 14 describes the Employee Retirement Plans including plan description,
<br />funding policy and annual pension cost. Since the City has less than 100 active members in the Safety plans since
<br />06/30/2003, the City is required to participate in a risk pool. An actuarial valuation was performed with other
<br />participants within the same risk pool. Therefore, standalone information of the schedule of the funding progress for
<br />the City was not disclosed.
<br />Valuation Actuarial Accrued Value of Unfunded Funded Covered as a % of
<br />Date Liability Assets Liability Status Payroll Payroll
<br />Miscellaneous:
<br />6/30/2009 205,208,780$ 179,247,735$ 25,961,045$ 87.3%23,510,790$ 110.4%
<br />6/30/2010 214,152,551 183,903,259 30,249,292 85.9%19,694,872 153.6%
<br />6/30/2011 226,836,862 190,211,455 36,625,407 83.9%19,739,792 185.5%
<br />Safety:
<br />6/30/2009 9,721,675,347$ 8,027,158,724$ 1,694,516,623$ 82.6%973,814,168$ 174.0%
<br />6/30/2010 10,165,475,166 8,470,235,152 1,695,240,014 83.3%955,980,815 177.3%
<br />6/30/2011 10,951,745,049 9,135,654,246 1,816,090,803 83.4%949,833,090 191.2%
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<br />* Effective with the 6/30/03 valuation, CalPERS established risk pools for plans containing less than 100 active
<br />members. The City’s plan is included of the cost-sharing multiple-employer defined benefit variety.
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