R468RESOLUTION NO. 468
A RESOLUTION ADOPTING AN AMENDED CITY OF KENNEDALE
UNCLAIMED PROPERTY POLICY
WHEREAS, on November 17, 2011, City Council adopted the document entitled,
"Unclaimed Property Policy," a framework to guide the City of Kennedale in the required annual
review of its records and reporting of all tangible and intangible property presumed abandoned
that is held or is owed in the ordinary course of Kennedale's business and remained unclaimed
by the owner for more than a specified period of time after it became payable or distributable;
and
WHEREAS, the City of Kennedale recognizes its responsibility to make a good faith
effort to determine the whereabouts of the owner of property, and also recognizes that there are
limits to what can be done to locate the rightful owner of property; and
WHEREAS, the City Council has reviewed the City's Unclaimed Property Policy.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF KENNEDALE, TEXAS:
The City Council of the City of Kennedale, Texas hereby approves the amended Unclaimed
Property Policy dated October 19, 2015, attached hereto as "Exhibit A."
PASSED, ADOPTED AND APPROVED by the City Council of the City of Kennedale,
Texas, this the 19th day of October, 2015.
APPROVED:
ATTEST:
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City Secretary, Leslie Gallo ay
ayor, B t Johnson
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CITY OF KENNEDALE
UNCLAIMED PROPERTY POLICY
ORIGINALLY ADOPTED BY CITY COUNCIL: NOVEMBER 17, 2011
PREFACE
The aim of the Unclaimed Property Policy is to guide the City of Kennedale in the required annual
review of its records and reporting of all tangible and intangible property presumed abandoned that is
held or is owed in the ordinary course of Kennedale's business and remained unclaimed by the owner
for more than a specified period of time after it became payable or distributable.
It is our intent to bring forth this policy to Council for review at least annually. In order to demonstrate
that review, it will be custom practice for the governing board of a municipality to adopt a resolution
to make the review an official public record.
SUBSEQUENT REVIEW & ADOPTION
OCTOBER 3, 2012
OCTOBER 10, 2013
OCTOBER 13, 2014
OCTOBER 19, 2015
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BACKGROUND
All financial institutions, businesses, government entities, and organizations that are holding
abandoned property belonging to Texas residents should file a report with the Texas
Comptroller's office. Title 6 of the Texas Property Code governs the State of Texas Unclaimed
Property Program. Chapters 72 through 75 apply to the reporting, delivery and claims process
for abandoned property. Chapter 76 applies specifically to unclaimed property held and
reported by Texas counties, municipalities, independent school districts and junior colleges.
Unclaimed property can be any financial asset that appears to have been abandoned by the
owner, such as the following:
■ Uncashed dividends, payroll, cashier's checks;
■ Stocks, bonds, mutual fund accounts;
■ Utility deposits and other refunds;
■ Bank accounts and safe deposit box contents;
■ Insurance proceeds;
■ Mineral interest or royalty payments; and /or
■ Court deposits, trust funds, escrow accounts.
The abandonment period is the number of years that an entity holds the property before
sending it to the state Comptroller's office. The property type determines the length of the
abandonment period.
The City of Kennedale recognizes its responsibility to make a good faith effort to determine the
whereabouts of the owner of property, and also recognizes that there are limits to what can be
done to locate the rightful owner of property.
11. POLICY
On an annual basis, the City of Kennedale is required to review its records and determine
whether it is holding any funds, securities or other property that has been unclaimed for the
required dormancy period, and to report and remit these unclaimed funds to the State of
Texas.
III. LEGAL REQUIREMENTS
A. Property is classified as unclaimed if it has reached the required abandonment period as
of March 1st each year. The City must hold property until the appropriate
abandonment period has run, and if property is determined to be unclaimed after this
date, it must be included in the next annual remittance to the State.
1) The abandonment period is determined by the property type. For more specific
detail, refer directly to the Texas Comptroller of Public Accounts: Unclaimed
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Property Reporting Instructions. Instructions are subject to change due to new or
revised requirements, so annual review of this manual is required.
B. Prior to remitting property to the Comptroller's Office as described below, the City must
mail a written notice to the owner on property valued at more than $250.00 no later
than May 1 5t of the year in which the property is classified as unclaimed per Section
74.1011 of the Texas Property Code. This notice requirement does not apply if a letter
has already been mailed to the missing owner earlier in the abandonment period. For
sample letter, refer directly to the Texas Comptroller of Public Accounts: Unclaimed
Property Reporting Instructions. Instructions are subject to change due to new or
revised requirements, so annual review of this manual is required.
C. Property that is valued at more than $100.00 will be delivered, along with the required
report form(s), to the State Comptroller's Office by July i following the date the
property is classified as unclaimed. Should the City not have unclaimed property
individually valued at more than $100, there is no report required.
1) Property that is due July 1 st may be remitted any time after the annual cut -off date
of March I" and before July 1st.
D. Per Chapter 74 of the Texas Property Code, property that is valued at less than $100.00
will be retained by the City.
1) Per Title 6, Chapter 76 of the Texas Property Code, the City shall publish a notice in
its official newspaper (general circulation in the jurisdiction of the holder) on or
before July 1 st in the calendar year immediately following the year in which the
property report is filed. For example: Notices for property classified as unclaimed
on March 1, 2015 must be published by July 1, 2015.
2) At a minimum, the owner's name and last known address must be listed.
3) If at all possible, the City will also include this notice on its official website.
4) While the City is required to publish a notice, it may elect to advertise only those
properties with a value greater than a specified amount of its choosing (i.e,.
greater than $50.00 but less than $100.00). For the City's purposes, the Finance
Department will include all property valued at $50.00 to $99.99.
IV. CLAIMS PROCESS
A. There is no statute of limitation on filing a claim.
B. Claimants must fill out a claim form and present proof of ownership.
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C. Within 90 days from the date of receiving the returned claim form, the Finance
Department will determine in good faith if the claim is valid. If the claim is valid, the City
will pay the full amount of the claim.
D. If the claim is determined to be invalid, it will be rejected. The claimant may appeal this
decision in accordance with Section 76.504 of the Texas Property Code.
V. ACCOUNTING
A. For property, which is valued at less than $100.00 and retained by the City, the Finance
Department will transfer funds from the City's operating funds to the Unclaimed
Property Fund on or before March 1 St for property classified as unclaimed.
1) Finance Department must void account payable entries code to a liability account in
Unclaimed Property Fund versus hitting an expense line item.
B. The Finance Department will transfer all funds retained by the City on an annual basis.
This transfer will be conducted from the Unclaimed Property Fund to the General Fund.
The General Fund will then become responsible for paying a valid claim should a valid
claim be submitted.
1) This action will clear out the liability account in the Unclaimed Property Fund and
provide revenue to the General Fund.
C. All publication and postage expenditures will be charged to Finance Department within
the General Fund. These items are budgeted annually.
D. For the purpose of simplicity, the Unclaimed Property Fund is not allocated earned
interest. The City is not obligated to pay interest to a claimant. Only the original
amount of the unclaimed property will be paid to the claimant.
VI. ANNUAL REVIEW
The Director of Finance shall, at a minimum, submit proposed amendments of this policy to the
City Council annually.
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