Item 272/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Patricia Song
Dept:
City Manager Dept: Finance
Date: 8/26/2025
Subject: Approval of the escheatment of unclaimed funds to the City in accordance with the City of Garden Grove Unclaimed Property Policy (Policy No. 200-14). (Action Item)
OBJECTIVE
To obtain City Council authorization for the Finance Director to initiate the escheatment process for $255, 425.00 in unclaimed funds and to recognize the amount as revenue in accordance with the City’s Unclaimed Property Policy (Policy No. 200-14).
BACKGROUND
On June 11, 2024, the City Council adopted Resolution No. 9863-24, establishing the City of Garden Grove Unclaimed Property Policy in accordance with California Government Code Sections 50050–50057. The Policy allows the City to escheat property with amount over $15.00 that remains unclaimed for over three years, after making reasonable efforts to return the funds, including publishing notice once a week for two consecutive weeks in a newspaper of general circulation. Funds under $15.00 that remain unclaimed for one year may be transferred to the General Fund or appropriate source fund wit hout publication. The Policy requires City Council approval to proceed with the escheatment of unclaimed property.
DISCUSSION
The City regularly issues checks for various obligations. Occasionally, some checks remain uncashed or are returned as undeliverable. In such cases, staff makes multiple attempts to locate the payees. If the payee is found, the original stale -dated check (after 180 days) is voided and a replacement is issued. If the payee cannot be located, the City follows Policy No. 200-14, the Unclaimed Property Policy, to escheat the funds.
For unclaimed checks over $15.00, the City is required to publish a notice. A public notice was published in the Orange County News on May 7 and May 14, 2025, listing unclaimed funds totaling $276,729.60. Si nce then, $2 3,236.49 has been claimed or cancelled . The remaining balance of $253,493.11, consisting of 780 checks, with issue dates ranging from Item 272/2025
October 2008 to December 2021, is now eligible for escheatment under State law and City policy.
In addition, staff identified 270 unclaimed checks under $15.00 – totaling $1,931.89 and issued between August 2015 and December 2023 – that have remained uncashed for over a year. These funds may also be escheated without public notice, subject to City Council approval.
The City last conducted an escheatment process in 2018. The current escheatment includes unclaimed checks dating back to 2008. With the formal adoption of the City’s Unclaimed Property Policy in June 2024, this process will now be conducted on an annual basis, resulting in significantly lower escheatment amounts in future years.
All unclaimed checks and properties regardless the amount as of January 1 are published on the City’s official website. Detailed instructions on how to file a claim along with the claim form is also listed on the web page: https://ggcity.org/finance/unclaimed-property. The Finance Department processes claims throughout the year, with the goal to return all funds to their proper owners.
FINANCIAL IMPACT
A total of $255,425.00 in unclaimed funds meet the criteria for escheatment. Once escheated, these funds will be recognized as revenue and become available for City use.
RECOMMENDATION
It is recommended that the City Council:
Authorize the Finance Director to proceed with the escheatment of the unclaimed checks listed in the attachment.
ATTACHMENT(S)
Attachment 1 – Unclaimed Checks Over $15.00
Attachment 2 – Unclaimed Checks Under $15.00
Attachment 3 – Affidavit of Publication