CITY OF SIGNAL HILL
STAFF REPORT
2175 Cherry Avenue • Signal
Hill, California 90755-3799
7/26/2022
AGENDA ITEM
TO:
HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM:
SHARON DEL ROSARIO
ADMINISTRATIVE SERVICES OFFICER/FINANCE DIRECTOR
JONATHAN OROZCO
ACCOUNTING MANAGER
SUBJECT:
UNCLAIMED FUNDS PRACTICE
Summary:
Staff is implementing a new practice to handle unclaimed funds under the City’s control that is allowed for pursuant to Government Code Section 50050. This new practice will provide means to address long-standing unclaimed checks and abandoned deposits in a manner that is in accordance with governing statutes.
Recommendation:
Receive and file.
Fiscal Impact:
Implementing the practice may result in an unknown amount of additional revenues from unclaimed checks and deposits. The nominal increase in revenues will likely be offset by publication expenses.
Strategic Plan Objective:
Goal No. 6: Promote a transparent and open government.
Background and Analysis:
State law provides procedures for cities and other local agencies to take ownership of unclaimed funds. Under Government Code section 50050 (Attachment A), funds that remain unclaimed in the City’s treasury or under the City’s official control for three or more years may become the property of the City after proper notice, provided the funds are not claimed, and no verified complaint for the CITY OF SIGNAL HILL Page 1 of 2 Printed on 7/22/2022
powered by Legistar™
7/26/2022
the City after proper notice, provided the funds are not claimed, and no verified complaint for the funds are timely filed and served.
The procedure will include the following:
1) After funds remain unclaimed for three years, a notice of the unclaimed funds will be published once a week for two successive weeks in a newspaper of general circulation within the City. The notice must state the amount of unclaimed funds, the fund in which it is held, and that the money will become the property of the City on a date that is at least 45 days after the first publication of the notice, but no more than 60 days after the first publication date.
2) Any money that is unclaimed following this notice process will become the property of the City and may be transferred from any special fund in which the money is held to the City’s General Fund.
3) For unclaimed funds under $15 each that remain unclaimed for a one-year period, the City may transfer the funds to the General Fund or originating fund without publishing notice of the unclaimed funds.
4) For unclaimed funds with an unknown depositor, regardless of depositor amount, that remain unclaimed for a one-year period, the City may transfer the funds to the General Fund or originating fund without publishing notice of the unclaimed funds. 5) Staff will post unclaimed funds on the City’s website prior to the three-year expiration period with the same information required to be publicly noticed in a newspaper to assist in identifying funds belonging to the rightful owner.
A party of interest may file a claim to the published unclaimed funds with the Finance Director, including the claimant’s name, address, amount of claim, the grounds on which the claim is founded, and any other pertinent information. The Finance Director will review and accept or reject claims, providing reasoning for rejection.
The City is not mandated to adopt a formal unclaimed funds policy, considering established practice follows government statutes as described.
Approved:
_________________________
Scott Charney
Attachment
CITY OF SIGNAL HILL Page 2 of 2 Printed on 7/22/2022
powered by Legistar™