The Napa city council proposed a resolution to authorize the escheatment of unclaimed funds held by the city. The city issues checks throughout the year to fulfill its obligations. There are many instances that these checks go uncashed for an extended period of time. When this occurs the city searches for updated contact information by phone and through internet searches. The staff report states that if the city is unable to locate the payee, the process of “escheatment” has been developed. This process allows for the unclaimed funds to be turned over to a governmental authority. The report further claims, “California Government Code Sections 50050 through 50056 provide that funds that are not the property of a local agency that remain unclaimed in its treasury for a period of three years becomes the property of the local agency after notice is provided.” Authorization of the transfer of unclaimed funds to the General Fund will result in $5,747.79 in additional revenue.
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The administrative policy is consistent with the provisions of the California Government Code addressing the issue of unclaimed monies. Staff will identify unclaimed funds which have remained unclaimed for the required three year period, publish the required notice and provide an additional opportunity for the funds to be claimed. At this point the City Council may authorize the transfer of any unclaimed funds to the City’s General Fund.