HomeMy WebLinkAboutFin Year-End Audited Financial Statements and Related Audit Reports____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: November 20, 2023
Disposition: Accepted the Fiscal Year 2022-23 Annual Comprehensive Financial Report,
Memorandum on Internal Control, Report of Required Communications, Child Development
Program Financial Report, and GANN Appropriations Limit Report
Agenda Item No: 5.a
Meeting Date: November 20, 2023
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Paul Navazio,
Finance Director
City Manager Approval: __________
TOPIC: YEAR-END AUDITED FINANCIAL STATEMENTS AND RELATED AUDIT
REPORTS
SUBJECT: FISCAL YEAR 2022-23 ANNUAL COMPREHENSIVE FINANCIAL REPORT;
MEMORANDUM ON INTERNAL CONTROL; REPORT OF REQUIRED
COMMUNICATIONS; CHILD DEVELOPMENT PROGRAM FINANCIAL
REPORT; AND GANN APPROPRIATIONS LIMIT
RECOMMENDATIONS:
Accept the Fiscal Year 2022-23 Annual Comprehensive Financial Report, Memorandum on
Internal Control, Report of Required Communications, Child Development Program Financial
Report, and GANN Appropriations Limit Report.
BACKGROUND:
As required by local code, State law, and bond covenants, as well as best practices, the City of
San Rafael completes an annual independent audit of its financial activities. The auditing firm of
Maze and Associates, Accountancy Corporation, conducted the FY 2022-23 audit. Their work
was completed in accordance with generally accepted auditing standards, issued by the
Comptroller General of the United States; and the provisions of Office of Management and Budget
Circular A-133, Audits of State and Local Government and Non-Profit Organizations. The draft
Comprehensive Annual Financial Report for the fiscal year ending June 30, 2023FY 2022-23 is
included as Attachment 1 to this staff report.
The auditors have also prepared a Memorandum on Internal Control to address the City’s control
over its financial activities. In addition, the requirements of Section 1.5 of Article XIIIB of the
California Constitution are met with an agreed-upon procedure report applied to the Gann
Appropriation Limit calculated for the year ending June 30, 2024. These reports are included as
Attachments 2-5 to this staff report.
As part of the fiscal year-end activities, the Finance and Library & Recreation departments worked
with the auditors to complete the annual audit of the City’s childcare program, as required by the
State of California.
For the year ending June 30, 2023, the City did not receive funds under the purview of the
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Transportation Development Act. Therefore, no separate audit report was completed to satisfy
the requirements of the State of California pertaining to these funds.
ANALYSIS:
Fiscal Year 2022-23 Annual Comprehensive Financial Report – City-wide Financial Results
The independent auditor has issued an unqualified opinion relative to the City’s financial
statements for the fiscal year ending June 30, 2023. This opinion states that the financial
statements present fairly, in all material respects, the City’s financial position. The audited results
of the City’s financial activities for the fiscal year ending June 30, 2023, are presented in the
attached Annual Comprehensive Financial Report (ACFR). Please refer to Attachment 1 for more
information.
The report includes Government-wide financial statements with governmental and business-type
activities presented separately. At the end of the fiscal year, the net position of the City’s
governmental activities, inclusive of all governmental funds, all assets of the City (including
infrastructure), and all liabilities (including long-term debt) was $281.5 million, an increase of
$47.3 million from the prior year adjusted balance.
This increase is attributable to several factors. First, Pension and Other Post-Employment
Benefits (OPEB) adjustments, based mainly on fiscal year 2021-22 activity, and the impact of
market gains achieved on investments during the measurement period. These adjustments
resulted in a reduced cumulative impact of both pension and OPEB liabilities on the financial
statements as a whole.
Also significantly impacting the increase was the capitalization of large-scale public works
projects, namely the Third Street improvement project, during the year. This has the impact of
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
both increasing capital assets in the asset section of the balance sheet as well as the net
investment in capital assets in the net position section. To a lesser extent, the net position was
impacted by positive results from strong sales and use tax and property tax rolls combined with
reduced personnel expenses resulting from position vacancies. The Parking Fund reported as a
business-type activity, ended the fiscal year with a net position of $10.8 million, or $0.7 million
greater than the previous fiscal year. The increase was mainly due to the aforementioned pension
and OPEB adjustments as operational results remain subdued from the lingering impacts of the
COVID-19 pandemic.
Additional explanatory information is provided in the Management’s Discussion and Analysis
(MD&A) section beginning on page five of the attached ACFR. The MD&A provides key highlights
and a summary view of financial activities for the year.
Financial Results: General Fund
General Fund expenditures and transfers out exceeded revenues and transfers by $6.0 million,
mainly due to the utilization of American Rescue Plan Act funds received in the prior year for
major projects. This was partially offset by continued growth in the City’s major revenue sources
and significantly reduced personnel costs resulting from position vacancies.
The fund balance of the General Fund as of June 30, 2023, was $27.8 million (a decrease of
$6.0 million from the prior year’s balance): $78 thousand is non-spendable, $9.8 million is
committed, $17.3 million is assigned, and $0.7 million is unassigned. The committed portion of
$9.8 million is for emergency and cash flow needs, which meets the minimum target reserve levels
at 10% of general fund operating expenditures.
Memorandum on Internal Control
As a component of the annual financial audit, the auditors are required to communicate matters
related to internal controls that may impact the accuracy of the City’s financial statements to the
City Council. The auditor’s Memorandum on Internal Control (Attachment 2) identifies findings
deemed to be either material weaknesses, significant deficiencies, or “other matters.”
The Memorandum on Internal Control issued with the audit of the financial statements for the
fiscal year ended June 30, 2023, does not identify any material weaknesses or significant
deficiencies. However, the memorandum notes that two “Other Matters” that were identified in
the prior year’s audit were not addressed by management as of June 30, 2023, and are
summarized as follows:
Adopted Budget Revised Budget Actual
Revenues $96,768 $98,268 $98,099
Transfers in 1,770 1,131 1,131
Total resources 98,538 99,399 99,230
Expenditures 92,971 $94,447 88,450
Operating transfers out 3,307 13,486 13,486
Capital transfers out - 3,307 3,307
Total uses 96,278 111,240 105,243
Net Results $2,260 ($11,841)($6,013)
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2023 (in thousands)
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
•Finding 2022-01 – Inaccurate Building Permit Fees. Over the course of the two prior
fiscal years, the auditors noted that the rates charged within the City’s permit billing system
did not match the rates published in the City’s Master Fee Schedule. Management had
noted that the permit fees being charged were correct and that this matter stemmed from
the City not having updated its formal Master Fee Schedule. While this issue remained
“unresolved” as of June 30, 2023, management notes that the City Council took action to
adopt the City’s updated Master Fee schedule at their meeting on July 3, 2023. This matter
is thus resolved.
•Finding 2022-2 – Purchasing Policy Compliance and Clarification of Requirements. This
finding resulted in a recommendation from the independent auditor that the City review
and update its Purchasing Policy to clarify requirements for the use of purchase orders
and contracts and review internal controls to ensure practices comply with the City’s
policy. In their Memorandum of Internal Controls, the auditor notes that this matter has not
yet been fully addressed by management.
Management’s response (included in the Memorandum of Internal Control):
Management concurs with the need to update the City’s Purchasing Policy and
procedures to ensure an appropriate level of internal controls, compliance with
policy requirements, and alignment with best practices. This effort has been
hampered by staff turnover, vacancies in key positions, and competing priorities.
Current management has prioritized the review of purchasing and contract
administration protocols, including updating policies, documentation of
procedures, staff training, and better utilization of the City’s financial ERP system
to monitor approvals, activity, and compliance.
Required Communications
Professional standards require that certain information regarding significant audit findings related
to the audit be communicated to those charged with governance. These communications include
minor changes to accounting policies, new accounting pronouncements, and a discussion of
significant accounting estimates, among other items. No adverse communications were noted.
Please refer to Attachment 3 for more information.
Child Development Program (Childcare) Financial Report
As a recipient of Childcare program grant funds from the California Department of Education, the
City is required to engage the independent auditor to review report on the receipt and use of these
funds as part of the annual financial audit. The Childcare Program has endured three consecutive
years of subdued results following the COVID-19 pandemic, drawing the fund balance from $1.7
million down to $352 thousand on June 30, 2022. In FY 2022-23, results have turned positive with
a $259 thousand increase in fund balance stemming from increased program enrollment and
grant augmentations. The program ended the year with $3.9 million in total revenues and $3.7
million in total expenditures, resulting in an ending fund balance of $611 thousand. The audit
resulted in no adverse findings. Please refer to Attachment 4 for more information.
Gann Appropriations Limit Compliance Report
This report is prepared by the City’s independent auditor to validate the calculation of the annual
adjustment to the City’s annual appropriations limit, pursuant to Article XIIIB of the State
Constitution. The resultant, so called, Gann Limit, establishes the maximum amount of adjusted
appropriations that may be included in the annual budget. The Agreed-Upon Procedures report
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
for the Gann Appropriations Limit (Attachment 5) required three procedures to be performed,
including testing the accuracy of the calculations and comparison of information presented.
FISCAL IMPACT:
No fiscal impact occurs by the City Council’s acceptance of these reports. The fiscal year 2022-
23Annual Comprehensive Financial Report and related reports are presented as the actual results
of the City and related entities’ financial activities for the year.
RECOMMENDED ACTION:
Accept the Fiscal Year 2022-23 Annual Financial Report, Memorandum on Internal Control,
Report of Required Communications, Child Development Program Financial Report, and GANN
Appropriations Limit Report.
ATTACHMENTS:
1.FY 2022-23 Draft Annual Comprehensive Financial Report
2.FY 2022-23 Draft Memorandum of Internal Controls
3.FY 2022-23 Draft Required Communications
4.FY 2022-23 Draft Child Development Program Financial Report
5.FY 2022-23 Draft Gann Appropriations Limit Compliance Report
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING JUNE 30, 2023
UC Marin Master Gardener Greenhouse, San Rafael, California
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SAN RAFAEL
THE CITY WITH A MISSION
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ANNUAL COMPREHENSIVE
FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2023
City of San Rafael, California
1400 Fifth Avenue
San Rafael, California 94901
Prepared by the Finance Department of the City of San Rafael
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Falkirk Cultural Center, San Rafael
INTRODUCTORY SECTION
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CITY OF SAN RAFAEL, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2023
Table of Contents
INTRODUCTORY SECTION
TABLE OF CONTENTS
Letter of Transmittal .................................................................................................................................... v
Mission Statement and Vision Statement .................................................................................................. xii
City Council and Staff .............................................................................................................................. xiii
Organizational Chart ................................................................................................................................. xiv
Location Map ............................................................................................................................................. xv
Certificate of Achievement for Excellence in Financial Reporting .......................................................... xvi
FINANCIAL SECTION
Independent Auditor's Report .................................................................................................................. 1
Management’s Discussion and Analysis .................................................................................................. 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ............................................................................................................. 23
Statement of Activities .................................................................................................................. 24
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet ............................................................................................................................ 28
Balance Sheet – Reconciliation of Governmental Fund Balances to
Net Position of Governmental Activities .............................................................................. 29
Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 30
Reconciliation of the Net Change in Fund Balances – Total Governmental
Funds with the Statement of Activities ................................................................................. 31
Proprietary Funds:
Statement of Net Position .......................................................................................................... 34
Statement of Revenues, Expenses, and Changes in Fund Net Position .................................... 35
Statement of Cash Flows ........................................................................................................... 36
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ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2023
Table of Contents
FINANCIAL SECTION (Continued)
Fiduciary Funds:
Statement of Fiduciary Net Position ......................................................................................... 38
Statement of Changes in Fiduciary Net Position ....................................................................... 39
Notes to Basic Financial Statements .................................................................................................. 41
Required Supplementary Information:
Schedule of the City’s Proportionate Share of the Net Pension Liability ..................................... 97
Schedule of Contributions – Defined Benefit Pension Plan ......................................................... 98
Schedule of Changes in Net OPEB Liability and Related Ratios ............................................... 107
Schedule of Contributions – OPEB ............................................................................................ 108
Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual –
Budgetary Basis
General Fund ........................................................................................................................... 117
Traffic and Housing Mitigation Special Revenue Fund .......................................................... 118
Gas Tax Special Revenue Fund ............................................................................................... 119
Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual –
Budgetary Basis
Essential Facilities Capital Projects Fund ................................................................................ 121
Non-major Governmental Funds:
Combining Balance Sheets ......................................................................................................... 124
Combining Statements of Revenues, Expenditures, and Changes
in Fund Balance ................................................................................................................... 128
Budgeted Non-major Governmental Funds:
Combining Schedules of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ...................................................................... 132
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ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2023
Table of Contents
FINANCIAL SECTION (Continued)
Internal Service Funds:
Combining Statements of Net Position ....................................................................................... 142
Combining Statements of Revenues, Expenses and Changes in Fund Net Position ................... 144
Combining Statements of Cash Flows ........................................................................................ 146
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ....................................................................... 152
Changes in Net Position – Last Ten Fiscal Years ............................................................................. 154
Fund Balances of Governmental Funds – Last Ten Fiscal Years ..................................................... 158
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .................................... 160
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ...................... 162
Property Tax Rates – All Overlapping Governments – Last Ten Fiscal Years ................................ 163
Property Tax Rates – Direct & Overlapping Governments –
Last Ten Fiscal Years (Rate Per $100 of Assessed Value) .......................................................... 164
Principal Property Tax Payers – Current Year and Nine Years Ago ................................................ 165
Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................... 166
Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................... 167
Computation of Direct and Overlapping Debt .................................................................................. 168
Computation of Legal Bonded Debt Margin .................................................................................... 169
Revenue Bond Coverage Parking Facility – Last Ten Fiscal Years ................................................. 170
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ANNUAL COMPREHENSIVE FINANCIAL REPORT
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Table of Contents
STATISTICAL SECTION (Continued)
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Calendar Years .................................................. 171
Principal Employers – Last Ten Calendar Years .............................................................................. 172
Operating Information:
Full-Time Equivalent City Government Employees by Function
– Last Ten Fiscal Years ................................................................................................................. 175
Operating Indicators by Function/Program – Last Ten Fiscal Years ................................................ 176
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ............................................ 178
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Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember
November XX, 2023
Honorable Mayor, Members of the City Council and Residents of San Rafael:
The Annual Comprehensive Financial Report (“Annual Report”) of the City of San Rafael
(“City”) for the year ended June 30, 2023, is hereby submitted as required by local
ordinances, state statutes and bond covenants. This financial report has been prepared in
conformance with Generally Accepted Accounting Principles (GAAP) as promulgated by
the Governmental Accounting Standards Board (GASB) and includes the report of the
independent certified public accounting firm, Maze and Associates Accountancy
Corporation, which has issued an unmodified, or “clean” opinion on the City’s financial
statements for the fiscal year ended June 30, 2023.
The independent audit of the financial statements is part of a broader, federally mandated
examination known as a “Single Audit”, which is designed to meet the needs of federal
grantor agencies. The standards governing Single Audits require the independent auditor to
report on the audited agency’s internal controls and compliance with legal requirements,
with special emphasis on such controls and requirements involving the administration of
federal funding. These reports will be available in the City’s separately issued Single Audit
Report.
City Management is responsible for both the data accuracy, and the completeness and
fairness of the presentation of this report. To the best of our knowledge and belief, the data
presented is accurate in all material respects and is reported in a manner that presents fairly
the financial position and results of operations of the various funds and component units of
the City. Further, the Annual Report is prepared in accordance with procedures and policies
set by the Government Finance Officers Association. The analysis of the financial
condition and the result of operations can be found in the financial section of the
Management’s Discussion and Analysis document. The Annual Report is organized into
three sections:
1.Introductory section, which is unaudited, includes this letter of transmittal, an
organizational chart, and a list of the City’s elected and appointed officials.
2.Financial section, includes the basic financial statements, related footnote disclosures,
and the combining and individual fund financial statements and schedules, as well as
the independent auditors' report.
3.Statistical section, which is unaudited, includes selected financial and demographic
information, presented on a multi-year basis. Generally, ten-year data is presented for
expenditures, revenues, assessed valuation for local properties and construction
activity.
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE , SAN RAFAEL , CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember
REPORTING ENTITY – PROFILE OF THE GOVERNMENT
The City of San Rafael is located 17 miles north of San Francisco in Marin County.
Protected by its Mediterranean like setting along the shores of the San Francisco Bay, the
City enjoys a mild climate year-round. As the County seat, San Rafael is considered the
commercial, financial, cultural and civic hub of Marin County. Abundant recreational
facilities are available in and around the City. The City’s park and recreational resources
include 24 city parks, 393 acres of developed parkland, city and county open space, and
China Camp State Park. San Rafael is close to other attractions, including the Golden Gate
Bridge, Muir Woods, Point Reyes National Seashore, Mount Tamalpais, multiple state
parks, San Francisco, Oakland and the Sonoma and Napa wine country.
In 1874, the City became the first incorporated city in the county, later becoming a charter
city in 1913 by vote of City residents. The City Council comprises five members; four are
elected to four-year terms while the mayor is elected separately to a four-year term. The
City’s land area is 22 square miles, including seventeen square miles of land and 5 of water
and tidelands. San Rafael's population on January 1, 2023, was 59,681.
Downtown San Rafael is the location of many community events, including Second Friday
Art Walks, Mill Valley Film Festival, West End Block Party, Thursday Night Farmer’s
Market, Porchfest, and is one of only 14 designated Cultural Arts Districts in the State of
California. San Rafael is also the heart of the County’s cultural activities with venues such
as the Marin Center, which presents numerous ballets, concerts, speaking engagements as
well as the award-winning Marin County Fair; the Falkirk Cultural Center, providing art
exhibits and children's programming; the Christopher B. Smith Film Center, and a host of
other diverse dining and entertainment venues.
The City provides a full range of municipal services required by statute or charter, namely:
police and fire protection, construction and maintenance of streets, parks, storm drains and
other infrastructure, recreation, childcare, permits, planning, code enforcement, and a
library system serving three locations. The City performed certain infrastructure
construction and economic development activities through a separate Redevelopment
Agency until its dissolution on February 1, 2012. The City of San Rafael accepted the role
of Successor Agency to the Redevelopment Agency per Council action on January 3, 2012,
and now conducts its economic development activities with funding from its General Fund.
The City and California Municipal Finance Authority compose the San Rafael Joint
Powers Financing Authority, originally established by the City and former Redevelopment
Agency for the purpose of financing redevelopment and other projects. The San Rafael
Sanitation District is a discretely presented component unit of the City and is presented
independent of City financial information. For a further explanation of these entities, refer
to Note 1 – Summary of Significant Accounting Policies in the Financial Section of the
Annual Report.
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE , SAN RAFAEL , CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember
The City participates in various organizations through formally organized and separate
entities established under the Joint Exercise of Powers Act of the State of California. As
separate legal entities, these agencies exercise full powers and authorities within the
scope of the related Joint Powers Agreement including the preparation of annual
budgets, accountability for all funds, and the power to make and execute contracts.
Obligations and liabilities of the separate entities are not those of the City. For a further
explanation of these separate entities, refer to Note 12 – Jointly Governed Organizations in
the Annual Report.
Building from over a decade of community efforts to address San Rafael's aging essential
public safety facilities, the Essential Facilities project continued during the year with phase
II addressing which includes the modernization of Fire Stations 54 and 55.
Significantly, during the 2022-23 fiscal year, the City Council adopted a set of two-year
Goals, Objectives, and Strategic Priorities that include:
•Economic Growth
•Sustainability, Climate Change, and Disaster Preparedness
•Diversity, Equity, Inclusion, and Belonging
•Housing and Homelessness
The programs, projects, and initiatives supporting these strategic goals will inform ongoing
investment of city resources in the near term.
ECONOMIC FACTORS
The City has a diversified economic base, which includes an assortment of high-tech,
financial, service-based, entertainment and industrial businesses. Downtown San Rafael
provides a mix of restaurants, retail shops and financial institutions. The City’s varied
economic base is reflected in its property tax base, which is 71% residential, 19%
commercial, 2% industrial, and 8% unsecured and others. The top 25 sales tax producers
provide about half of overall sales tax revenues.
The overall economy continues to navigate the impacts of the COVID 19 pandemic and,
as of this writing, faces uncertainty of a looming recession. Inflation remains elevated
but has eased from the highs of the last two years, and strong employment figures
continue to justify further economic tightening. Economists are predicting pandemic
fueled savings to begin running out through the latter half of the calendar year and a
possible mild recession to follow.
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE , SAN RAFAEL , CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember
Locally, Marin County is showing signs of slowing economic activity, however, remains
at an elevated post-pandemic level. Unemployment remains low at 3.4%, below the
latest state-wide rate of 4.6%, however the labor force has contracted by about 5% from
pre-pandemic levels. In all, Marin County is still poised to weather the current period of
economic tightening to return to growth in the medium term. Specifically, the San
Rafael office market continues to see increased vacancies given the work-from-home
policies by employers and reduced office footprints. This issue is not unique to San
Rafael but impacts the entire commercial real estate office market. Depending on larger
economic factors this could provide an opportunity for building redevelopment or re-
use.
Economic Data
The following is a sample of economic attributes that make San Rafael an exceptional
place to live and work.
•Economic development organizations in San Rafael include the San Rafael
Chamber of Commerce, Hispanic Chamber of Commerce, Downtown Business
Improvement District, and the Marin Economic Forum.
•Marin County’s top employers include Kaiser Permanente, the City of San Rafael,
Marin Independent Journal, Marin County Sheriff’s Dept, YMCA San Francisco,
Managed Health Network, Wells Fargo, Community Action Marin, and BioMarin.
•Major shopping areas, as measured in available retail square footage, include the
Downtown corridor (938,000 aggregate), Northgate Mall (725,000), Montecito
Center (130,000) and Northgate One (113,900).
•The top three sales tax categories during the fiscal year ended June 30, 2023, for
San Rafael were: 1. Autos and Transportation (27%), 2. State and County Pools,
which mainly reflects ecommerce activity (24%), and 3. Building and Construction
(19%).
•Several hotels and motels support tourism activity, led by a combined 471 rooms in
the Embassy Suites and Four Points Sheraton. Citywide, the total number of hotel
rooms is 927. The Four Points Sheraton was recently sold for $38 million and is
slated for a significant rebranding and upgrade. In addition, a downtown AC
Marriot recently opened its doors providing 140-rooms and a roof-top bar/lounge.
Lastly, a 185-room dual branded Hampton Suites/H2 hotel has started grading
construction activities.
•Establishing and maintaining affordable residential housing for sale and lease continues to
be a challenge both in San Rafael and throughout Marin County. The median rent for an
apartment in San Rafael is $3,187. The median home value in San Rafael is $1,341,284.
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE , SAN RAFAEL , CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember
Recent growth and economic vibrancy:
•As mentioned above, the City is enjoying a boost in development of hotel rooms
thanks to a new AC Marriott Hotel located in the heart of our Downtown. A
dual-brand Hampton Inn/H2 Hotel is also coming soon in the East San Rafael
neighborhood to serve a variety of large retailers and businesses as well as
workers within the traditionally industrial area. These two hotels combined will
add 325 new hotel rooms to the City and generate additional Transit Occupancy
Tax (TOT).
•The City has recently entitled a major housing project at 1515 Fourth Street for
162 residential units and 8,900 sq. ft. of retail anchoring the western portion of
the downtown. The development represents a catalytic investment into the
downtown utilizing the City’s recently adopted Downtown Precise Plan and
State of California housing density bonuses.
•The City is processing a large project entitlement for redevelopment of the
Northgate Mall. The proposed project would bring 1422 new housing units
anchored by an IMAX movie theater, restaurants, and boost existing retail
anchors.
•The City has adopted its first ever citywide Economic Development Strategic Plan
in early 2023. the plan includes detailed actionable tasks that provide measurable
benefits and value driving enhanced economic vitality.
•San Rafael continues to serve our local business and restaurant community by
implementing a structured formal outdoor dining program called the Streetary
Program, which replaced the temporary emergency outdoor dining program that
greatly supported our businesses during the COVID-19 pandemic. In
coordination with the Business Improvement District, the City has also
reimagined the ‘Dining Under the Lights’ event into a tailored, post-COVID
program including block parties and entertainment that draws foot traffic to our
downtown and welcomed back the Thursday Night Farmer’s Market which did
not operate in 2022
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE , SAN RAFAEL , CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember
FINANCIAL INFORMATION
The City's management is responsible for establishing and maintaining internal controls to
ensure that the City's assets are adequately protected from loss, theft or misuse. In addition,
management controls ensure that proper accounting data is collected so as to prepare
reports in conformance with generally accepted accounting principles.
Internal accounting controls are designed to provide reasonable, but not absolute, assurance
regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition;
and (2) the reliability of financial records for preparing financial statements and
maintaining accountability for assets. The concept of reasonable assurance recognizes that
the cost of a control should not exceed the benefits likely to be derived. All internal control
evaluations occur within the above framework. It is management’s belief that the City's
internal accounting controls adequately safeguard assets and provide reasonable assurance
that financial transactions are properly recorded.
The City develops a budget based upon City Council priorities and department objectives.
The Finance Department maintains a traditional line-item budget by major function.
Budget control is accomplished at the functional or division level within each fund. This
budget creates a comprehensive management and fiscal system aimed at achieving the
objectives of each operating level consistent with those that have been set for the
community by the City Council. Each department director is responsible for accomplishing
goals within his or her functional area and monitoring the use of her or his budget
allocations consistent with policies set by the City Council and monitored by the City
Manager.
REVIEW DRAFT x 10/30/2023
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE , SAN RAFAEL , CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
Kate Colin, Mayor • Maika Llorens Gulati, Vice Mayor • Maribeth Bushey, Councilmember • Maribeth Bushey, Councilmember • Eli Hill, Councilmember
ACKNOWLEDGMENTS
The preparation of this City-wide document would not have been possible without the
assistance of each of the City’s departments. In addition, Finance support staff Kate
Llamas, Whitney Zimmerman, Rayanne Lulay, Damien Oyobio, Claire Coleman, and
Finance Manager Shawn Plate, with oversight by Accounting Manager Van Bach and
Finance Director Paul Navazio were key to the timely issuance of this report.
We believe this document meets the Government Finance Officers Association’s (GFOA)
Certificate of Achievement for Excellence in Financial Reporting requirements and will be
submitting it to the GFOA to determine its eligibility. If accepted, this will mark the twelfth
consecutive year for which the City received the award.
Lastly, we appreciate the ongoing leadership and support from the Mayor and City
Councilmembers. Their strong commitment to financial accountability and stewardship
provide inspiration to the organization and motivate a high level of achievement.
Respectfully submitted,
Cristine Alilovich Paul Navazio
City Manager Finance Director
REVIEW DRAFT xi 10/30/2023
CITY OF SAN RAFAEL I 1400 FIFTH AVENUE , SAN RAFAEL , CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
MISSION STATEMENT
The Mission of the City of San Rafael is to enhance the quality of
life and to provide for a safe, healthy, prosperous and livable
environment in partnership with the community.
VISION STATEMENT
Our vision for San Rafael is to be a vibrant economic and cultural
center reflective of our diversity, with unique and distinct
neighborhoods in a beautiful natural environment, sustained by
active and informed residents and a responsible innovative local
government.
January 1996
REVIEW DRAFT xii 10/30/2023
SAN RAFAEL
THE CITY WITH A MISSION
City Council and Staff
City Council
Kate Colin, Mayor
Maika Llorens Gulati, Vice Mayor
Maribeth Bushey, Councilmember
Eli Hill, Councilmember
Rachel Kerz, Councilmember
Elected Officials
Rob Epstein, City Attorney
Lindsay Lara, City Clerk
Executive Team
Cristine Alilovich, City Manager
David Spiller, Chief of Police
Darin White, Fire Chief
April Miller, Public Works Director
Alicia Giudice, Community Development Director
Catherine Quffa, Library & Recreation Director
Sean Mooney, Director of Digital Service & Open Government
Genevieve Coyle, Assistant City Attorney
Micah Hinkle, Director of Economic Development and Innovation
Paul Navazio, Director of Finance
REVIEW DRAFT xiii 10/30/2023
SAN RAFAEL
THE CITY WITH A MISSION
ORGANIZATIONAL CHART
Electorate
City Clerk City Attorney
Mayor& City Council
Boards & CommissionsAssistant City Manager
Volunteer and Sustainability Programs
ParkingServices
Police DepartmentFire Department Library and Recreation Public Works
Economic Development
City Manager
Digital Service and Open Government
Community Development Homeless Initiatives
Administrative Services
REVI
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~ THE CITY WITH A M ISSION
REVIEW DRAFT xv 10/30/2023
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Greater San Francisco
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Rafael
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
REVIEW DRAFT xvi 10/30/2023
e
Arbor Park, San Rafael
FINANCIAL SECTION
REVIEW DRAFT 10/30/2023
REVIEW DRAFT 10/30/2023
INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of San Rafael, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of San Rafael (City), California, as of and for the year ended June 30, 2023, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements
as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City as of
June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for
the year then ended in accordance with accounting principles generally accepted in the United States of
America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of the financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
REVIEW DRAFT 1 10/30/2023
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Change in Accounting Principles
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 96,
Subscription-Based Information Technology Arrangements, which became effective during the year ended
June 30, 2023 and required restatement of certain governmental activities subscription-related balances as
discussed in Note 1T to the financial statements.
The emphasis of these matters does not constitute a modification to our opinions.
REVIEW DRAFT 2 10/30/2023
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis and other required supplementary information as listed in the Table of Contents be
presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit
of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide
any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in
the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not
include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of assurance
thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exits, we are required to describe it in our report.
REVIEW DRAFT 3 10/30/2023
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated DATE, on our
consideration of the City’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of
that report is solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal control
over financial reporting and compliance.
Pleasant Hill, California
DATE
REVIEW DRAFT 4 10/30/2023
-
-
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
This analysis of the City of San Rafael’s (City) financial performance provides an overview of the City’s financial
activities for the fiscal year ended June 30, 2023. Please read it in conjunction with the basic financial statements and
the accompanying notes to those basic financial statements.
FINANCIAL HIGHLIGHTS
Government-wide:
•Net Position – The assets and deferred outflows of the City exceeded its liabilities and deferred inflows as of
June 30, 2023, by $292.3 million.
•Activities – During the fiscal year the City’s total revenues of $152.8 million were greater than expenses of
$104.8 million for governmental and business-type activities.
•Changes in Net Position – The City’s total net position increased by $48.0 million in fiscal year 2022-2023
as compared to the net position of the previous year. Net position of governmental activities increased by
$47.3 million, while net position of the business-type activities increased by $734 thousand.
Fund Level:
•Governmental Funds – As of the close of fiscal year 2022-2023, the City’s governmental funds reported
combined ending fund balances of $78.5 million, an increase of $6.6 million primarily due to receipt of grant
funds in advance of capital project spending for projects such as the Third Street Rehabilitation project and
the Pickleweed and Carnegie Library Renovation projects. Of this total amount, $261 thousand is
nonspendable, $46.4 million is restricted, $13.8 million is committed, $17.3 million is assigned, and $665
thousand is unassigned.
•Governmental fund revenues totaled $147.6 million, an increase of $500 thousand from the those of the
previous fiscal year. Although the increase appears nominal, the prior year included the recognition of
approximately $16.1 million of one-time American Recovery Plan Act funds. The current year included over
$12 million in intergovernmental revenues related to the Third Street Rehabilitation Project against roughly
$3.3 million received for the project in the prior year. The remainder can be mainly attributed to a gain of
$1.2 million on the pooled investment portfolio during the year when compared with a loss of $1.6 million
in the prior year, as well as growth in taxes and assessments and charges for services of about $5.3 million.
•Governmental fund expenditures increased by $6.3 million to $138.7 million, from $132.4 million in the
prior year. Major factors included increased project expenditures, most notably the Third Street
Rehabilitation project, as well as compensation increases, and overall increasing costs for goods and services
across all facets of operations.
•Enterprise fund net position increased $734 thousand to $10.8 million as the City’s parking program began
to rebound from the lingering effects of the pandemic during the year.
OVERVIEW OF FINANCIAL STATEMENTS
The Annual Comprehensive Financial Report is composed of the following:
1.Introductory section, which includes the Transmittal Letter and general information
2.Management’s Discussion and Analysis (this part)
3.Basic Financial Statements, which include the Government-wide and the Fund financial statements,
including Fiduciary Funds, along with the Notes to these financial statements
4.Combining statements for Non-Major Governmental Funds and Internal Service Funds
5.Statistical Information
5
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which
have three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to
the Basic Financial Statements.
The basic financial statements include the City (primary government) and all legally separate entities (component
units) for which the government is financially accountable. This report also contains other supplementary information
in addition to the basic financial statements for further information and analysis.
Government-wide Financial Statements
The government-wide financial statements present the financial picture of the City and provide readers with a broad
view of the City’s finances. These statements present governmental activities and business-type activities separately
and include all assets of the City (including infrastructure) as well as all liabilities (including long-term debt).
Additionally, certain interfund receivables, payables, and other interfund activity have been eliminated as prescribed
by generally accepted accounting principles.
The Statement of Net Position and the Statement of Activities and Changes in Net Position report information about
the City as a whole. These statements include all assets and liabilities of the City using the accrual basis of
accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s
revenues and expenses are taken into account, regardless of when cash is received or paid.
The Statement of Net Position presents information on all the City’s assets, deferred outflows/inflows of resources,
and liabilities, with the difference reported as net position. Over time, increases in net position may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities and Changes in Net Position presents information showing how the City’s net position
changed during the year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of timing of related cash flows.
In the Statement of Net Position and the Statement of Activities and Changes in Net Position, City activities are
separated as follows:
Governmental Activities – Most of the City’s basic services are reported in this category, including Public Safety,
Public Works and Parks, Community Development, Cultural and Recreation, and Government Administration
(finance, human resources, legal, City Clerk and City Manager operations). Property tax, sales and use taxes, user
fees, interest income, franchise fees, hotel taxes, business licenses, and property transfer taxes, plus state and federal
grants finance these activities.
Business-type Activities – The City charges fees to customers to cover the full costs of certain services it provides.
The City’s Parking Services program is the City’s sole business-type activity.
Discretely Presented Component Units – The government–wide financial statements include not only the City itself
(the primary government), but also the San Rafael Sanitation District, a legally separate entity for which the City is
financially accountable. Financial information for the San Rafael Sanitation District is reported separately from the
financial information presented for the primary government.
The government-wide financial statements can be found on pages 23 through 25 of this report.
6
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Fund Financial Statements and Major Component Unit Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for
specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All the funds of the City are divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
The fund financial statements provide detailed information about each of the City’s most significant funds called
major funds. Each major fund is presented individually with all non-major funds summarized and presented in a
single column. Further detail on the non-major funds is presented on pages 124 through 139 of this report.
Governmental Funds – Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government’s near-term financial capacity.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for government funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand the
long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities. These reconciliations are
presented on the page immediately following each governmental fund financial statement.
The City has thirty-two governmental funds, of which four are considered major funds for presentation purposes.
Each major fund is presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances. The City’s four major funds are: the General
Fund, Traffic and Housing Mitigation, Gas Tax and Essential Facilities Capital Projects. Data from the other twenty-
five governmental funds are combined into a single, aggregated presentation. The basic governmental fund financial
statements can be found on pages 28 through 31 of this report. Individual fund data for each of these non-major
governmental funds is provided in the form of combining statements on pages 124 through 139 of this report.
Proprietary Funds – The City maintains two different types of proprietary funds - enterprise funds and internal
service funds. Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City uses an enterprise fund to account for its Parking Services program
and reports it as a major fund. Internal service funds are used to accumulate and allocate costs internally among the
City’s various functions. The City uses internal service funds to account for its building maintenance; vehicle,
equipment and computer replacement; workers’ compensation; general liability; self-insured dental program; other
employee and retiree benefits programs. Because these services predominantly benefit governmental rather than
business-type functions, they have been included within governmental activities in the government wide financial
statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more
detail. Like the government-wide financial statements, proprietary fund financial statements use the accrual basis of
accounting. There is no reconciliation needed between the government-wide financial statements for business-type
activities and the proprietary fund financial statements.
The proprietary fund financial statements can be found on pages 34 through 36 of this report.
7
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of
those funds are not available to support the City’s own programs. The City acts as an agent on behalf of others,
holding amounts collected, and disbursing them as directed or required. The City’s fiduciary activities are reported
in the separate Statements of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. The
City’s fiduciary funds include a private purpose trust fund to account for activities of the City of San Rafael Successor
Agency and a custodial fund that accounts for resources held by the City in a custodial capacity for the Pt. San Pedro
Road Assessment District. Information for the fiduciary funds can be found on pages 38 through 39 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements. The notes to the financial statements can be found on pages
41 through 96 of this report.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information. One section includes budgetary comparison statements for the General Fund and major
funds (general, gas tax, and traffic and housing mitigation). The other section includes schedules of funding progress
for the Marin County Employees’ Retirement System and the City’s OPEB plan. All budgeted positions that are filled
by either full-time or permanent part-time employees (working seventy-five percent of full-time equivalent) are
eligible to participate in the system and the OPEB plan. Required supplementary information can be found on pages
97 through 114 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
Net position measures the difference between (a) assets and deferred outflows of resources and (b) liabilities and
deferred inflows of resources. During this fiscal year, the net position of the City was $281.5 million from
Governmental Activities and $10.8 million from Business-type Activities, for a total of $292.3 million. This
represents an increase of $48 million from the prior year’s net position.
8
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2023 and 2022:
Current and other governmental assets decreased by $38.1 million, primarily resulting from the inclusion of a Net
Pension Asset of $46.6 million in the prior year that reverted to Net Pension Liability in the current year. The
remainder is primarily the result of positive operating results as revenue growth outpaced expense growth during the
year. The $16.7 million increase in capital assets reflects project-to-date activity for major traffic infrastructure
improvements, as well as Fire Station 54 and 55 construction and improvements. The increase of $30.1 million in
deferred outflows is primarily a result the impact of pension-related investment losses during the measurement year
which caused the unamortized net difference between projected and actual earnings on plan investments to shift to a
deferred outflow from deferred inflow in the prior year. In order to decrease the volatility of the measurement of net
pension liability gains and losses in excess of those projected are capitalized and amortized over a five-year period.
Current and other liabilities decreased by approximately $569 thousand, primarily due a decrease in accounts payable
of $764 thousand. Noncurrent governmental liabilities increased by $103.8 million mainly as a result of the
reclassification of the prior year’s net pension asset to a net pension liability mentioned previously. Deferred inflows
decreased by $141.2 million mainly as a result of the net difference between projected and actual earning on
investments during the measurement period that resulted in a substantial net deferred outflow.
The net position in business-type activities reflects the fiscal activity of the Parking Services program and increased
by $734 thousand from the previous year as a result of a recovery in parking program revenues that had been slow to
rebound from the impacts of the pandemic. Current and other assets decreased by $1.8 million due the reclassification
of the prior year’s $1.6 million net pension asset to a net pension liability in the current year. Correspondingly,
noncurrent liabilities increased by $2.8 million mainly due to the addition of the $3.1 million net pension liability.
Increase Increase
2023 2022 (Decrease) 2023 2022 (Decrease)
Current and other assets $135,941 $174,072 ($38,131) $1,745 $3,568 ($1,823)
Capital assets 311,664 294,928 16,736 15,162 15,281 (119)
Total assets 447,605 469,000 (21,395) 16,907 18,849 (1,942)
Deferred outflows (Notes 9 and 11)73,312 42,534 30,778 1,312 1,864 (552)
Current and other liabilities 18,677 19,246 (569) 503 533 (30)
Noncurrent liabilities 192,517 88,630 103,887 6,942 4,086 2,856
Total liabilities 211,194 107,876 103,318 7,445 4,619 2,826
Deferred inflows (Notes 4G, 9 and 11)28,213 169,434 (141,221) 772 5,475 (4,703)
Net Position:
Net investment in capital assets 259,204 246,438 12,766 11,454 11,256 198
Restricted 46,773 36,668 10,105 0 0
Unrestricted (24,466) (48,883) 24,417 (653) (1,189) 536
Total net position $281,511 $234,223 $47,288 $10,801 $10,067 $734
Governmental Activities Business-Type Activities
Summary of Net Position
(in thousands)
9
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Capital assets decreased by $119 thousand due to current year depreciation. The decreases in deferred outflows and
related increases in deferred inflows and current and other assets were due to the pension-related adjustments
mentioned above. The $30 thousand increase in current liabilities is driven by the decrease in accounts payable to
end the year.
At June 30, 2023, the largest portion of total net position in the amount of $270.7 million consisted of the City’s
investment in capital assets net of related debt. This component represents the total amount of funds required to
acquire capital assets less any related debt used for such acquisition that is still outstanding. The City uses these
assets to provide services to residents. The capital assets of the City are not sources of income for repayment of debt
as most assets are not revenue generating and generally are not liquidated to repay debt. Therefore, debt service
payments are funded from other sources available to the City.
A portion of the City's total net position, $46.8 million, is subject to external restrictions, and their use is determined
by those restrictions whether legal or by covenant. In addition, the unrestricted negative $25.1 million represents the
extent to which the net investment in capital assets and restricted net position exceed total net assets.
Invested in Capital Assets (net)$270,658
Restricted 46,773
Unrestricted (25,119)
Total Net Position $292,312
Net Position as of 6/30/2023
(in thousands)
10
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Statement of Activities - Governmental
The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ended June
30, 2023 and 2022:
Increase
2023 2022 (Decrease)
REVENUES
Program revenues:
Charges for services $20,735 $18,938 $1,797
Operating grants and contributions 6,764 22,521 (15,757)
Capital grants and contributions 18,438 9,868 8,570
Total program revenues 45,937 51,327 (5,390)
General revenues:
Property taxes 33,023 32,324 699
Sales taxes 45,633 44,110 1,523
Paramedic tax 5,224 5,110 114
Transient occupancy tax 3,396 2,976 420
Franchise tax 4,425 4,210 215
Business license tax 2,584 2,646 (62)
Other taxes 2,975 3,109 (134)
Investment earnings 1,709 (1,424)3,133
Gain from sale of capital assets 990 (990)
Miscellaneous 3,233 2,966 267
Total general revenues 102,202 97,017 5,185
TOTAL REVENUES 148,139 148,344 (205)
EXPENS ES
General government 11,163 10,459 704
Public safety 49,904 34,379 15,525
Public works and parks 23,354 14,031 9,323
Community/economic development 4,437 2,835 1,602
Culture and recreation 10,723 7,431 3,292
Interest on long-term debt 1,793 2,005 (212)
TOTAL EXPENSES 101,374 71,140 30,234
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 46,765 77,204 (30,439)
Transfers in 521 521 -
T otal Other Financing Sources (Uses)521 521 -
Net Change in Net Position 47,286 77,725 (30,439)
Beginning Net Position 215,851 138,126 77,725
Ending Net Position, June 30 $263,137 $215,851 $47,286
Governmental Activities
Summary of Changes in Net Position
(in thousands)
11
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
The City’s governmental activities net position increased by $47.3 million during fiscal year 2022-2023. Year-over-
year revenues were largely similar to the prior year, however, there are significant fluctuations within program and
general revenues to arrive at the total. Within program revenues, charges for services increased about $1.8 million
as the result of recovery in Recreation and Childcare programs from lingering effects of the pandemic, as well as
growth in ambulance third-party billings. Operating grants and contributions decreased by $15.8 million as the prior
year amount included the recognition of $16.1 million in one-time ARPA funds and Capital grants and contributions
increased by roughly $8.6 million mainly as the result of contributions to the Third Street Rehabilitation project.
Within the general revenues category, investment earnings increased by $3.1 million following the recording of a
$1.7 million gain during the year juxtaposed against the $1.4 million loss of the prior year. The loss of the prior year
was attributable to the rapid rise in interest rates during the period, causing a correspondingly sharp decrease in the
value of bonds. Also of note, property and sales taxes continued to show strong growth, accounting for an increase
of $2.2 million in revenue for the year.
Overall operating expenses reflect significant increases for the fiscal year as a direct result of pension and OPEB
adjustments made during the year. The prior year’s amounts were anomalously low as a result of extraordinary
market returns during the measurement period ending June 30, 2021, that was reported June 30, 2022. The
adjustments for these expenses offset personnel costs in each functional area on the Statement of Activities for fiscal
2021-22. Market losses during the June 30, 2022, fiscal year have had the opposite effect on balances for the current
fiscal year, thus presenting a large variance that is not consistent with the City’s incremental functional program cost
as presented on the fund financial statements.
The following graph shows governmental revenues by source:
12
Revenues by Source
Governmental Acfv"ties
Taxes, 65.65%
Capital gr.ants and
contributioM, 12.45%
Operating grants and
• -,oontrihotioBS, 4.57%
Miscell\aneous, 3.34%
Charges fo.-services,.
14.00%
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Total expenses for governmental activities were $99.6 million (excluding interest on long-term debt of $1.8 million).
Program revenues offset total expenses as follows:
• Those who directly benefited from programs contributed $20.7 million in charges for services.
• A total of $25.2 million in operating and capital projects were funded by outside agencies through operating
grants, capital grants, and contributions.
As a result, total expenses that were funded by tax revenues, investment income, other general revenues and fund
balance were $53.6 million.
Functional expenses for the year ended June 30, 2023, were as follows:
Function Amount Percent of Total
General government $11,163 11.0%
Public safety 49,904 49.2%
Public works and parks 23,354 23.0%
Community development 4,436 4.4%
Culture and recreation 10,723 10.6%
Interest on debt 1,793 1.8%
Total expenses $101,373 100%
Expenses by Function
(in thousands)
13
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
s-
Pub lic Safety
Expenses and Program1 Revenues
Governmental Activities
(in thousands)
Public Worlcs and
?a r ks
Culture and
Recreation
Genera l Govemrnent Commun ity
Development
■ Program Revenues ■ Expenses
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Statement of Activities – Business-Type
The net position for business-type activities increased from the prior year by $733 thousand primarily as a result of
increased program revenues following a sluggish post-pandemic recovery. In the prior two fiscal years the Parking
services program was acutely affected by the lasting impacts of the coronavirus pandemic as reduced brick-and-
mortar business activity and increased remote work arrangements reduced demand for street and garage parking.
Parking services is the City’s only business-type activity with income derived from program revenues of $4.7 million.
Program revenues include parking meter coin income of $1.4 million and parking garage hourly and monthly parking
income of $0.9 million. Revenues also include parking and non-vehicle code fines totaling $2.4 million. Total
expenses for parking services were $3.4 million and transfers out to general fund and non-major governmental fund
for support totaled $521 thousand during the fiscal year 2022-2023.
Increase
2023 2022 (Decrease)
Revenues
Program revenues:
Charges for services $4,682 $3,837 $845
Total program revenues 4,682 3,837 845
General revenues:
Investment Income 8 9 (1)
Total general revenues 8 9 (1)
TOTAL REVENUES 4,690 3,846 844
Expenses
General government 3,436 2,227 1,209
TOTAL EXPENSES 3,436 2,227 1,209
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 1,254 1,619 (365)
OTHER FINANCING SOURCES (USES)
Transfers out (521) (521) -
T otal Other Financing sources (uses)(521) (521) -
Net Change in Net Position 733 1,098 (365)
Net Position, Beginning 10,067 8,969 1,098
Net Position, Ending $10,800 $10,067 $733
Summary of Changes in Net Position
For the periods ended June 30, 2023 and 2022 (in thousands)
Business-Type Activities
14
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
Governmental Funds
Fund Balance Classifications
Fund balances are classified in five categories: nonspendable, restricted, committed, assigned, and unassigned based
on a hierarchy of constraint. Further details on fund balance classifications can be found in Note 8B.
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances
of spendable resources. Such information is useful in assessing the City’s financial capacity. In particular, unassigned
fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the
fiscal year.
As of June 30, 2023, the City reported a combined ending fund balance of $78.5 million of all its governmental funds
(an increase of $6.6 million from the prior year): $261 thousand is non-spendable, $46.4 million is restricted,
$13.8 million is committed, $17.4 million is assigned, and $665 thousand is unassigned.
General Fund – The General Fund is the primary operating fund of the City.
General Fund – The fund balance of the General Fund as of June 30, 2023, was $27.8 million (a decrease of $6 million
from the prior year balance): $78 thousand is non-spendable, $9.8 million is committed, $17.3 million is assigned
and $665 thousand is unassigned. The committed portion of the balance includes $9.8 million for emergency and
cash flow needs.
General Fund Budgetary Highlights:
The original adopted General Fund budget projected total revenue of $96.8 million and transfers-in of $1.8 million
for total resources of $98.6 million. This budget appropriated expenditures of $93 million and transfers-out of
$3.3 million for total appropriations of $96.3 million. Revenues were later increased to $98.3 million as a result of
increased sales and use tax projections at mid-year. Transfers-in were reduced $639 thousand mainly as a result of
foregoing the annual transfer of administrative costs from the Gas Tax fund to maintain capacity within the fund for
project needs. Transfers-out were increased by $13.5 million mainly for project support of the San Quentin Pump
Station project ($7.25 million), Liability fund projects ($2.4 million), and other capital projects ($3.3 million).
Actual revenues, at $98.1 million, exceeded original budgeted revenues by $1.3 million. The increase is largely
attributed to increased sales and use taxes, property taxes, and hotel taxes received during the year. These revenue
increases were offset by lower than anticipated intergovernmental transfers and charges for services eclipsing
favorable fair value adjustments to the City’s fixed income portfolio of approximately $637 thousand. Expenditures
of $88.5 million were $4.5 million less than original budgeted expenditures of $93 million as the City experienced
significant personnel savings on vacant positions during the fiscal year. The City Council took action to apply a
portion of these savings to the Capital Projects and Liability funds for project support via transfers out.
Fiscal year 2022-2023 General Fund expenditures and transfers out of $105.2 million exceeded revenues and transfers
in of $99.2 million by $6.0 million. The variance is primarily the result of the utilization of ARPA proceeds received
in the prior year.
15
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Traffic and Housing Mitigation Fund – The City uses this fund to collect developer contributions to be used for
major street improvement and housing infrastructure projects. During the year, the fund balance increased from $4.9
million to $5.7 million. Revenues totaled $1.0 million, while $223 thousand was charged against this fund to support
the maintenance of the City-wide traffic model and the Grand Avenue Cycle Track project, which would add bicycle
facility on the east side of grand Avenue between Fourth Street and Second Street. The balance in the fund is being
held in anticipation of major street projects identified in the General Plan 2040 and other qualifying expenditures.
Gas Tax Fund – The City uses this fund to manage its allocation of State gasoline taxes and local funding for street
maintenance projects. Gas tax revenues exceeded expenditures and net transfers by $4.9 million in fiscal year 2022-
2023 resulting in an increase in fund balance from $6.9 million to $11.8 million. The activities for the year were all
planned and approved project work.
Expenditures during fiscal year 2022-2023 totaled $16.9 million. In addition to routine street-related maintenance of
$1.3 million, major expenditures included $10.1 million for the third street rehabilitation project, $1.8 million for
slurry seal projects, $1.4 million for third street safety improvements, $946 thousand for parking modifications and
other enhancements at Spinnaker Point, and $495 thousand for resurfacing and improvements to Bungalow Avenue.
The largest sources of revenues were $1.1 million in development impact fees, $1.3 million in federal grants, $1.6
million from State gasoline taxes, $1.4 million in State RMRA (Road Maintenance and Rehabilitation Account)
funding, $7.8 million in local Measure A and AA funding, and $4.2 million in reimbursements from local agencies.
Essential Facilities Capital Projects Fund – The City uses this fund to account for major capital improvements to
public safety facilities. During the year, construction was substantially completed on Fire Stations 54 and 55.
Expenditures during fiscal year 2022-2023 totaled $6.2 million and transfers from the General Fund representing an
allocation of Measure E Transaction and Use Tax totaled $587 thousand.
Non-major Governmental Funds – The City’s non-major funds are presented in the basic financial statements in the
aggregate. At June 30, 2023, non-major funds had a total fund balance of $29.5 million, a $12.5 million increase over
that of the previous year. The largest fund balance decrease, $306 thousand, was recorded in the Measure A Open
Space Fund as result of prior year fund balance being drawn down. The largest fund balance increase, $5.4 million,
was recorded in the Stormwater Fund as $7.25 million in one-time funds were transferred from the general fund to
support the San Quentin pump station repair project during the year.
Adopted Budget Revised Budget Actual
Revenues $96,768 $98,268 $98,099
Transfers in 1,770 1,131 1,131
Total resources 98,538 99,399 99,230
Expenditures 92,971 $94,447 88,450
Operating transfers out 3,307 13,486 13,486
Capital transfers out - 3,307 3,307
Total uses 96,278 111,240 105,243
Net Results $2,260 ($11,841)($6,013)
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2023 (in thousands)
16
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
Of the ending total non-major fund balances of $29.5 million: $25.2 million (86%) is legally restricted for specific
purposes by external funding source providers, $4.0 million (14%) is committed for special purposes by the City
Council, $119 thousand (less than 1%) is assigned, and $183 thousand (less than 1%) is nonspendable. Additional
information about these aggregated non-major funds is presented in the combining statements which immediately
follow the required supplementary information.
Proprietary Funds
The City’s proprietary funds are presented in the basic financial statements in a manner similar to that found in the
government-wide financial statements, but in more detail. As noted in the Summary of Changes in Net Position –
Business-type Activities on page 35, the City’s enterprise fund net position increased by $733 thousand during the
fiscal year. The Parking Services Fund is the City’s sole business-type (Enterprise) activity.
The parking services fund’s operating revenue increased by $845 thousand in fiscal year 2022-2023 to $4.7 million.
The enterprise fund operating expenses were $3.3 million in fiscal year 2022-2023, an increase of $1.2 million over
the prior fiscal year. The increase in operating revenues was the result of continued recovery from the pandemic
driving higher demand for parking. The substantial increase in expenses is a direct result of pension adjustments
related to the measurement year ending June 30, 2022, when extraordinary gains were achieved and offset pension
expenses for the period. Pension adjustments related to allocated losses incurred during the measurement year ending
June 30, 2023, resulted in a reverse of the prior year adjustment, and thereby operating expenditures, resulting in
totals more in line with historic norms.
The City’s Internal Service Funds are also reported in this Proprietary Fund classification. In fiscal year 2022-2023,
the Internal Service Funds comprised of: Building Maintenance, Vehicle Replacement, Equipment Replacement,
Employee Benefits, Liability Insurance, Workers’ Compensation, Dental Insurance, Employee Retirement,
OPEB/Retiree Medical, Radio Replacement, Telephone Replacement and Sewer Maintenance. The net position of
the Internal Service Funds increased by $4.3 million. Net investment in capital assets increased by $206 thousand,
while unrestricted fund balance increased by $4.1 million. The increase in capital assets resulted primarily from
vehicle purchases, offset by depreciation of existing capital assets. The increase in unrestricted fund balance reflects
increased allocations to the Liability Fund to fund projects resulting from claims as well as increased allocations to
the Vehicle Replacement Fund to fund repair and replacement of aging capital assets. The other Internal Service
Funds reported small-to-moderate changes to their respective net positions.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental activities as of June 30, 2023, amounts to $311.6 million,
net of accumulated depreciation of $211.4 million. This investment in capital assets includes land, buildings,
improvements, machinery and equipment, infrastructure, right-to-use lease assets, and construction in progress.
Infrastructure assets are items that are normally immovable and of value only to the City such as roads, bridges,
streets and sidewalks, drainage systems, lighting systems, and similar items. The addition to the City’s investment
in capital assets for the current fiscal year was $25.3 million, offset by accumulated depreciation of $10.1 million.
Additions to capital assets during fiscal year 2022-2023 included:
• Machinery and Equipment: Vehicles totaling $1.5 million
• Infrastructure: $3.7 million
• Bungalow Avenue Rehabilitation - $1.5 million
17
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
•San Rafael Canal Improvements - $1.1 million
•Schoen parking lot conversion - $1.1 million
A comparison of the City’s Capital Assets for the fiscal years ending June 30, 2023 and 2022 is presented below:
Additional information on the City’s capital assets can be found in Note 5 on pages 63 through 64 of this report.
* The 2022 balances have been restated to reflect the effects of the implementation of GASB Statement No. 96. See
Note 1S for additional information.
Debt Administration
The City’s debt obligations were stable year-over-year and reflect payments of principal made during the year. The
debt of the former Redevelopment Agency is reported under the Successor Agency, which is presented as a Private-
Purpose Trust Fund on the Statement of Fiduciary Net Position. (See Note 6 of the financial statements for additional
information on the debt obligations of the City and Note 16 for additional information on the Successor Agency.)
The City’s long-term obligations for the fiscal years ending June 30, 2023 and 2022 were as follows:
2023
2022
(as restated)*
Governmental Activities
Land $84,026 $84,026
Construction in progress 42,582 22,485
Land improvements 10,852 9,763
Buildings and structures 119,165 119,165
Machinery and equipment 22,016 20,497
Infrastructure 237,123 234,559
Intangible right-to-use leased building 5,476 5,476
Int angible right-to-use leased equipment 258 258
Int angible right-to-use subscription 1,559 1,559
Les s accumulated depreciation (211,394) (201,301)
Subtotal Governmental Activities 311,663 296,487
Business-type Activities
Land 8,621 8,621
Buildings and structures 10,714 10,714
Machinery and equipment 1,047 940
Less accumulated depreciation (5,219)(4,994)
Subtotal Business-type Activities 15,163 15,281
Total Capital Assets $326,826 $311,768
Summary of Capital Assets
(in thousands)
18
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
2023 2022
Governmental Activity Debt:
2018 Authority Lease Revenue Bond $44,852 $47,600
2010 Taxable Pension Obligation Bonds 1,805 2,340
PG & E City Hall HVAC Retrofit Note Payable 13 46
P G & E Efficiency Note Payable 531 680
P G & E City Hall Efficiency Note Payable 143 165
Subtotal Governmental Activity Debt 47,344 50,831
Business-Type Activity Debt:
PG & E Parking Lot Lighting Retrofit Note Payable 1 7
2012 Authority Lease Revenue Refunding Bonds 3,708 4,018
Subtotal Business-Type Activity Debt 3,709 4,025
Total Long-Term Obligations $51,053 $54,856
Summary of Long-Term Debt
(in thousands)
19
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2023
ECONOMIC CLIMATE AND NEXT YEAR’S BUDGET
The global economy continues to slow as high inflation persists under tighter monetary policy. The International
Monetary Fund currently projects global growth to slow from 3.5% in 2022 to 3.0% in 2023, then reduced further to
2.9% in 2024. Policy interest rates are at or close to a peak in most economies and with core inflation remaining
stubborn, economies are likely to face mounting fiscal pressure as the cost of debt becomes more burdensome.
Nationally, the economic climate is focused on inflation and corresponding monetary policy surrounding interest
rates. The US is likely close to a peak in interest rates as the Federal Reserve has recently signaled at least a pause
in its tightening in the short-term as it continues to gather economic data supporting the general slowing of the
economy to combat inflation. The country is likely to experience slow growth in the year ahead as the economy
continues to grapple with persistent inflation.
In California, the long-forecasted recession appears to be postponed further as consumer spending remains strong
and unemployment remains low at 4.6%. However, the housing market remains particularly constrained as high
mortgage rates and low affordability put pressure on the sector, currently buoyed by a reduction in supply. Should
current economic projections hold, the state may, in fact, weather this period of aggressive monetary policy without
falling into an official recession.
Locally, Marin County remains somewhat insulated from more pronounced impacts of the macro environment with
an unemployment rate among the lowest in the state at 3.7% and per capita income among the highest. However, the
County has been experiencing a labor shortage since the onset of the pandemic that could put pressure on local
businesses to perform and lead to inflationary pressures.
In San Rafael, sales and use tax forecasts show the city slowing from post-pandemic boom with a contraction of just
over 1 percent for the coming fiscal year. Overall, the city’s revenue sources are budgeted to grow at a rate of less
than one percent in fiscal 2023-24, as the economy begins to cool, however remaining at its elevated post-pandemic
level. The City’s largest expenditure relates to personnel costs that are tied to labor agreements with each bargaining
group. The City’s labor units are all operating under three-year contracts that expire in 2024.
The City heads into the new fiscal year with a strong balance sheet and large capital projects in the pipeline bolstered by
use of ARPA funds. Expectations are for large drawdowns on accumulated fund balances as capital projects get
underway. However, costs are continuing to rise and certain projects may need to be prioritized to ensure the City does
not become overextended.
REQUEST FOR INFORMATION
This financial report is designed to provide our residents, businesses, customers, and investors and creditors with a
general overview of the City’s finances and to demonstrate the City’s accountability for providing high quality
services within the limits of our fiscal resources. If you have questions about this report or need additional financial
information, contact the City of San Rafael – Finance Department at 1400 Fifth Avenue, Room 204, San Rafael,
California 94901.
20
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial
activities and financial position. They are also referred to as Government-wide financial statements.
The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of
resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital
assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of the
City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets and
deferred outflows of resources.
The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities
in a single column, and the financial position of all the City’s Business-type Activities in a single column;
these columns are followed by a total column which presents the financial position of the entire City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special
Revenue and Capital Projects Funds. Since the City’s Internal Service Funds service these Funds, their
activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and
balances. The City’s Business-type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on
the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of
when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial
statements, which reflect only current assets, current liabilities, deferred outflows/inflows of resources,
available revenues, and measurable expenditures.
The Statement of Activities presents the City’s expenses first, listed by program, and follows these with
the expenses of its business-type activities. Program revenues - that is, revenues which are generated
directly by these programs - are then deducted from program expenses to arrive at the net expense of each
governmental and Business-type program. The City’s general revenues are then listed in the
Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net
Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City and the San Rafael Joint Powers
Financing Authority which are legally separate but are considered to be component units of the City
because they are controlled by the City, which is financially accountable for their activities. The balances
and the activities of the San Rafael Sanitation District, a discretely presented component unit, are
included in these statements in a separate column.
REVIEW DRAFT 21 10/30/2023
REVIEW DRAFT 10/30/2023
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION
JUNE 30, 2023
Component
Primary Government Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
ASSETS
Cash and investments available for operations (Note 2)$108,416,439 $580,051 $108,996,490 $47,632,637
Restricted cash and investments (Note 2)707,371 707,371
Receivables:
Accounts, net 4,164,410 1,164,507 5,328,917 1,884,396
Intergovernmental 9,941,501 9,941,501
Grants 5,740,300 5,740,300
Interest 460,766 460,766
Loans (Note 4A)3,722,291 3,722,291
Long-term receivable from San Rafael Sanitation District (Note 4G)2,002,944 2,002,944
Leases receivable (Note 4H)495,548 495,548
Prepaid expenses and others 290,193 290,193 77,441
Capital assets (Note 5):
Nondepreciable 126,607,764 8,620,853 135,228,617 7,769,106
Depreciable, net 185,055,855 6,541,564 191,597,419 52,320,884
Total Assets 447,605,382 16,906,975 464,512,357 109,684,464
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension (Note 9)66,395,277 2,005,869 68,401,146
Deferred outflows related to OPEB (Note 11) 6,916,720 105,280 7,022,000
Total Deferred Outflows of Resources 73,311,997 2,111,149 75,423,146
LIABILITIES
Accounts payable 10,472,693 112,966 10,585,659 1,313,903
Developer and other deposits payable 846,711 846,711
Interest payable 31,322 31,322
Unearned revenue 468,456 21,402 489,858
Claims payable (Note 13):
Due in one year 2,886,630 2,886,630
Due in more than one year 12,900,068 12,900,068
Compensated absences (Note 1L):
Due in one year 528,768 16,444 545,212
Due in more than one year 3,701,377 115,104 3,816,481
Long-term debt (Note 6):
Due in one year 3,184,469 320,489 3,504,958
Due in more than one year 44,160,068 3,387,928 47,547,996
Lease liabilities (Note 14):
Due in one year 62,395 62,395
Due in more than one year 5,515,740 5,515,740
Subscription liabilities (Note 14):
Due in one year 226,781 226,781
Due in more than one year 1,115,064 1,115,064
2,002,944
Net OPEB liability, due in more than one year (Note 11)22,740,857 346,143 23,087,000
Net Pension liability, due in more than one year (Note 9)102,383,546 3,093,111 105,476,657
Total Liabilities 211,193,623 7,444,909 218,638,532 3,316,847
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension (Note 9)23,357,716 705,660 24,063,376
Deferred inflows related to OPEB (Note 11)4,385,251 66,749 4,452,000
Deferred inflows related to leases receivable (Note 4H)469,623 469,623
Total Deferred Inflows of Resources 28,212,590 772,409 28,984,999
NET POSITION (Note 8):
Net investment in capital assets 259,204,102 11,454,000 270,658,102 59,178,014
Restricted for:
Special revenue projects:
Housing and street improvements 19,400,818 19,400,818
Stormwater 6,629,459 6,629,459
Emergency medical services 2,464,501 2,464,501
Other 13,978,369 13,978,369
Capital projects 4,300,186 4,300,186
Total Restricted Net Position 46,773,333 46,773,333
Unrestricted (24,466,269) (653,194) (25,119,463) 47,189,603
Total Net Position $281,511,166 $10,800,806 $292,311,972 $106,367,617
See accompanying notes to financial statements
Long-term payable to the City of San Rafael, due in more than one year (Note 4G)
REVIEW DRAFT 23 10/30/2023
CITY OF SAN RAFAEL
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General government $11,162,650 $383,890 $985,789
Public safety 49,903,663 7,063,009 2,617,235
Public works and parks 23,353,510 3,146,404 2,980,423 $16,429,375
Community development 4,436,659 4,982,748
Culture and recreation 10,723,168 5,158,806 180,368 2,008,856
Interest on long-term debt and fiscal charges 1,793,203
Total Governmental Activities 101,372,853 20,734,857 6,763,815 18,438,231
Business-type Activities:
Parking services 3,435,551 4,682,140
Total Business-type Activities 3,435,551 4,682,140
Total Primary Government $104,808,404 $25,416,997 $6,763,815 $18,438,231
Component Unit
San Rafael Sanitation District $13,541,927 $16,638,611 $5,531 $175,481
General revenues:
Taxes:
Property
Sales:
Sales and Use
Measure R quarter-cent sales
Measure E half-cent sales
Measure E quarter-cent sales
Paramedic
Transient occupancy
Franchise
Business license
Other
Investment earnings
Gain from sale of capital assets
Miscellaneous
Transfers (Note 3A)
Total general revenues and transfers
Change in Net Position
Net Position, beginning of year
Net Position, end of year
See accompanying notes to financial statements
REVIEW DRAFT 24 10/30/2023
Component
Primary Government Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
($9,792,971)($9,792,971)
(40,223,419)(40,223,419)
(797,308)(797,308)
546,089 546,089
(3,375,138)(3,375,138)
(1,793,203)(1,793,203)
(55,435,950)(55,435,950)
$1,246,589 1,246,589
1,246,589 1,246,589
(55,435,950)1,246,589 (54,189,361)
$3,277,696
33,023,030 33,023,030 2,129,197
26,124,164 26,124,164
4,802,175 4,802,175
9,804,352 9,804,352
4,902,176 4,902,176
5,224,387 5,224,387
3,396,479 3,396,479
4,424,917 4,424,917
2,583,546 2,583,546
2,975,282 2,975,282
1,708,860 8,320 1,717,180 1,328,202
3,233,349 3,233,349 11,759
521,322 (521,322)
102,724,039 (513,002) 102,211,037 3,469,158
47,288,089 733,587 48,021,676 6,746,854
234,223,077 10,067,219 244,290,296 99,620,763
$281,511,166 $10,800,806 $292,311,972 $106,367,617
Net (Expenses) Revenues and Changes in Net Position
REVIEW DRAFT 25 10/30/2023
REVIEW DRAFT 10/30/2023
FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year. Only
individual major funds are presented in the Fund Financial Statements, while non-major funds are combined
in a single column. Individual non-major funds may be found in the Supplemental Section.
The funds described below were determined to be major funds by the City in fiscal year 2022-2023:
GENERAL FUND
Established to account for all financial resources necessary to carry out basic governmental activities of
the City which are not accounted for in another fund. The General Fund supports essential City services
such as police and fire protection, building and street maintenance, libraries, recreation, parks, and open
space maintenance.
TRAFFIC AND HOUSING MITIGATION SPECIAL REVENUE FUND
Established to maintain long-term developer contributions for major housing and street improvement
projects.
GAS TAX SPECIAL REVENUE FUND
Established to receive and expend the City’s allocation of the State gasoline taxes.
ESSENTIAL FACILITIES CAPITAL PROJECTS FUND
Established to account for major capital improvements to public safety facilities.
REVIEW DRAFT 27 10/30/2023
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2023
Traffic and Essential Other Total
General Housing Facilities Capital Governmental Governmental
Fund Mitigation Gas Tax Projects Fund Funds Funds
ASSETS
Cash and investments available for operations (Note 2) $22,962,334 $3,796,390 $8,177,990 $4,117,352 $26,574,041 $65,628,107
Restricted cash and investments (Note 2)621,650 3,352 82,369 707,371
Receivables:
Accounts 1,771,001 2,393,409 4,164,410
Intergovernmental 9,170,687 392,561 378,253 9,941,501
Grants 45,538 5,004,338 690,424 5,740,300
Interest 454,608 6,158 460,766
Loans (Note 4A)1,059 1,922,012 1,799,220 3,722,291
Leases (Note 4H)42,363 453,185 495,548
Prepaids 78,057 182,890 260,947
Total Assets $35,147,297 $5,718,402 $13,574,889 $4,120,704 $32,559,949 $91,121,241
LIABILITIES
Accounts payable $5,537,855 $25,340 $1,739,177 $402,689 $1,955,259 $9,660,320
Deposits payable 278,204 189,388 467,592
Developer deposits payable 375,484 3,635 379,119
Unearned revenue 468,456 468,456
Total Liabilities 6,191,543 25,340 1,739,177 402,689 2,616,738 10,975,487
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,147,817 1,147,817
Related to leases (Note 4H)39,939 429,684 469,623
Total Deferred Inflows of Resources 1,187,756 429,684 1,617,440
Fund Balances (Note 8):
Nonspendable 78,057 182,890 260,947
Restricted 5,693,062 11,835,712 3,718,015 25,202,545 46,449,334
Committed 9,753,000 4,008,844 13,761,844
Assigned 17,272,274 119,248 17,391,522
Unassigned 664,667 664,667
Total Fund Balances 27,767,998 5,693,062 11,835,712 3,718,015 29,513,527 78,528,314
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $35,147,297 $5,718,402 $13,574,889 $4,120,704 $32,559,949 $91,121,241
Special Revenue Funds
See accompanying notes to basic financial statements
28
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2023
Total fund balances reported on the governmental funds balance sheet $78,528,314
Amounts reported for Governmental Activities in the Statement of Net Position are
different from those reported in the Governmental Funds because of the following:
Capital assets used in Governmental Activities are not financial resources and,
therefore, are not reported in the Governmental Funds. 298,799,407
Internal service funds are used by management to charge the cost of management of
37,966,327
Long-term liabilities, including bonds payable, lease liabilities and subscription liabilities,
are not due and payable in the current period and, therefore, are not reported in the
Governmental Funds.(53,148,125)
Compensated absences (4,230,145)
Unavailable revenue 1,147,817
Long-term receivable from San Rafael Sanitation District 2,002,944
Deferred outflows related to pension 66,395,277
Net pension liability (102,383,546)
Deferred inflows related to pension (23,357,716)
Deferred outflows related to OPEB 6,916,720
Deferred inflows related to OPEB (4,385,251)
Net OPEB liability (22,740,857)
Net position of governmental activities $281,511,166
building, workers' compensation, employee benefits, insurance, and post-retirement healthcare
benefits to individual funds. The assets and liabilities are included in Governmental Activities in
the Statement of Net Position.
See accompanying notes to financial statements
REVIEW DRAFT 29 10/30/2023
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
Traffic and Essential Other Total
Housing Facilities Capital Governmental Governmental
General Mitigation Gas Tax Projects Fund Funds Funds
REVENUES
Taxes and special assessments $86,808,092 $9,565,303 $96,373,395
Licenses and permits 3,002,122 3,002,122
Fines and forfeitures 228,966 228,966
Use of money and properties 684,150 $112,664 $79,353 $27,274 319,587 1,223,028
Intergovernmental 3,521,419 225,000 19,123,868 5,720,599 28,590,886
Charges for services 2,843,882 697,658 2,419,840 9,868,715 15,830,095
Other revenue 1,010,712 137,258 1,174,889 2,322,859
Total Revenues 98,099,343 1,035,322 21,760,319 27,274 26,649,093 147,571,351
EXPENDITURES
Current:
General government 13,114,356 744,268 13,858,624
Public safety 47,070,997 11,602,881 58,673,878
Public works and parks 14,602,766 142,969 3,695,723 1,094,130 19,535,588
Community development 5,174,237 16,009 5,190,246
Culture and recreation 3,201,698 9,462,584 12,664,282
Capital outlay 64,050 13,170,654 6,213,497 4,088,639 23,536,840
Debt service:
Principal 3,044,551 3,044,551
Interest and fiscal charges 2,241,875 2,241,875
Total Expenditures 88,450,480 223,028 16,866,377 6,213,497 26,992,502 138,745,884
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 9,648,863 812,294 4,893,942 (6,186,223) (343,409) 8,825,467
OTHER FINANCING SOURCES (USES)
Transfers in (Note 3A)1,131,142 8,897 32,400 586,926 12,817,453 14,576,818
Transfers out (Note 3A)(16,793,126)(8,897)(18,457) (16,820,480)
Total Other Financing Sources (Uses) (15,661,984) 8,897 23,503 586,926 12,798,996 (2,243,662)
Net Change in Fund Balances (6,013,121) 821,191 4,917,445 (5,599,297) 12,455,587 6,581,805
FUND BALANCES, BEGINNING OF YEAR 33,781,119 4,871,871 6,918,267 9,317,312 17,057,940 71,946,509
FUND BALANCES, END OF YEAR $27,767,998 $5,693,062 $11,835,712 $3,718,015 $29,513,527 $78,528,314
See accompanying notes to financial statements
Special Revenue Funds
REVIEW DRAFT 30 10/30/2023
CITY OF SAN RAFAEL
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $6,581,805
Amounts reported for Governmental Activities in the Statement of Activities are
different because of the following:
Capital Assets Transactions
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities
the cost of those assets is capitalized and allocated over their estimated useful lives and reported
as depreciation and amortization expense.
Capital outlay and improvement expenditures are added back to fund balance 23,857,867
Depreciation and amortization expense is deducted from fund balance (8,654,471)
(Depreciation and amortization expense is net of internal service fund depreciation
and amortization of $1,490,782, which has already been allocated to serviced funds).
Long-Term Debt and Lease Liability Proceeds and Payments
Governmental funds record proceeds and payments as other financing sources and expenditures.
However, in the Statement of Net Position, those costs are reversed as increases and decreases
in long-term liabilities.
Repayments of long-term debt principal 2,956,642
Amortized bond premium expense is added back to fund balance 507,943
Repayments of lease principal 82,561
Repayments of subscription principal 5,348
Accrual of Non-Current Items
The amount below included in the Statement of Activities does not require the use of current financial
Compensated absences 57,666
Unavailable revenue 67,417
Long-term receivable from San Rafael Sanitation District (1,321,117)
Net Pension (Asset) Liability Transactions
Governmental funds record pension expense as it is paid. However,
in the Statement of Activities those costs are reversed as deferred outflows/(inflows)
and an increase/(decrease) in net pension (asset) liability.16,574,632
Net OPEB Liability Transactions
Governmental funds record OPEB expense as it is paid. However,
in the Statement of Activities those costs are reversed as deferred outflows/(inflows)
and an increase/(decrease) in net OPEB liability.2,259,607
Allocation of Internal Service Fund Activities
Internal service funds are used by management to charge the costs of certain activities to individual
funds. The net revenue of the internal service fund is reported with governmental activities.4,312,189
Change in Net Position of Governmental Activities $47,288,089
resources and therefore is not reported as revenue or expenditures in governmental funds (net change):
See accompanying notes to financial statements
REVIEW DRAFT 31 10/30/2023
REVIEW DRAFT 10/30/2023
PROPRIETARY FUND FINANCIAL STATEMENTS
Proprietary funds account for City operations financed and operated in a manner similar to a private business
enterprise. The intent of the City is that the cost of providing goods and services be financed primarily
through user charges, whether external or internal.
The City reports its only enterprise fund as a major fund.
PARKING SERVICES FUND
Established to maintain parking garages, lots, and spaces in the Downtown Parking District, and to pay
for parking enforcement and meter collection.
INTERNAL SERVICE FUNDS
Established to account for department services and financing performed for other departments within the
same governmental jurisdiction. Funding comes from charges assessed to the departments benefiting
from the service.
REVIEW DRAFT 33 10/30/2023
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2023
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds
ASSETS
Current Assets:
Cash and investments available for operations (Note 2) $580,051 $42,788,332
Receivable:
Accounts, net 1,164,507
Prepaid expense 29,246
Total Current Assets 1,744,558 42,817,578
Noncurrent Assets:
Capital assets (Note 5):
Nondepreciable 8,620,853 910,869
Depreciable, net 6,541,564 11,953,343
Total Noncurrent Assets 15,162,417 12,864,212
Total Assets 16,906,975 55,681,790
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension (Note 9) 2,005,869
Deferred outflows related to OPEB (Note 11) 105,280
Total Deferred Outflows of Resources 2,111,149
LIABILITIES
Current Liabilities:
Accounts payable 112,966 812,373
Interest payable 31,322
Unearned revenue 21,402
Compensated absences, due in one year (Note 1L) 16,444
Claims payable, due in one year (Note 13) 2,886,630
Long-term debt, due in one year (Note 6) 320,489 21,755
Subscription liabilities, due in one year (Note 14) 221,166
Total Current Liabilities 502,623 3,941,924
Noncurrent Liabilities:
Compensated absences (Note 1L) 115,104
Claims payable (Note 13)12,900,068
Long-term debt (Note 6) 3,387,928 121,463
Net OPEB liability (Note 11) 346,143
Net pension liability (Note 9) 3,093,111
Subscription liabilities (Note 14)752,008
Total Noncurrent Liabilities 6,942,286 13,773,539
Total Liabilities 7,444,909 17,715,463
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension (Note 9) 705,660
Deferred inflows related to OPEB (Note 11) 66,749
Total Deferred Inflows of Resources 772,409
NET POSITION (Note 8):
Net investment in capital assets 11,454,000 11,747,820
Unrestricted (653,194) 26,218,507
Total Net Position $10,800,806 $37,966,327
See accompanying notes to financial statements
REVIEW DRAFT 34 10/30/2023
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds
OPERATING REVENUES
Charges for current services $2,284,581 $18,360,583
Other operating revenues 2,397,559 1,133,874
Total Operating Revenues 4,682,140 19,494,457
OPERATING EXPENSES
Personnel 1,631,692 3,917,989
Insurance premiums and claims 9,012,844
Maintenance and repairs 178,555 164,010
Depreciation expense (Note 5) 225,055 1,490,782
General and administrative 1,261,236 3,832,184
Total Operating Expenses 3,296,538 18,417,809
Operating Income 1,385,602 1,076,648
NONOPERATING REVENUES (EXPENSES)
Investment income 8,320 501,564
Miscellaneous revenue 28,976
Interest expense (139,013) (59,271)
(Loss) from disposal of capital assets (712)
Total Nonoperating Revenues (Expenses) (130,693) 470,557
Income Before Contributions and Transfers 1,254,909 1,547,205
TRANSFERS
Transfers in (Note 3A)3,485,000
Transfers out (Note 3A) (521,322) (720,016)
Net transfers (521,322) 2,764,984
Change in Net Position 733,587 4,312,189
NET POSITION, BEGINNING OF YEAR 10,067,219 33,654,138
NET POSITION, END OF YEAR $10,800,806 $37,966,327
See accompanying notes to financial statements
REVIEW DRAFT 35 10/30/2023
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $2,284,581 $18,378,748
Cash payments to suppliers for goods and services (1,467,756) (15,071,899)
Cash payments to employees for salaries and benefits (2,392,760) (1,367,804)
Other revenues 2,105,962 1,133,874
Cash Flows from Operating Activities 530,027 3,072,919
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Miscellaneous revenues 28,976
Interfund revenues 3,485,000
Interfund payments (521,322)(720,016)
Cash Flows from Noncapital
Financing Activities (521,322)2,793,960
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal payments on revenue bonds and note payable (316,816)(21,754)
Principal payments on subscription liability (212,258)
Interest expenses and fiscal charges (142,863)(59,271)
Acquisition of capital assets (106,742) (1,463,889)
Cash Flows from Capital and
Related Financing Activities (566,421) (1,757,172)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 8,320 501,564
Cash Flows from Investing Activities 8,320 501,564
NET CHANGE IN CASH AND CASH EQUIVALENTS (549,396)4,611,271
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,129,447 38,177,061
CASH AND CASH EQUIVALENTS, END OF YEAR $580,051 $42,788,332
Reconciliation of operating income to net cash
provided by operating activities:
Operating income $1,385,602 $1,076,648
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation 225,055 1,490,782
Net change in assets and liabilities:
Accounts receivable (287,201)18,165
Prepaids (24,786)
OPEB-related items (34,393)
Accounts payable (27,965)327,134
Unearned revenue (4,396)
Compensated absence obligations 23,401
Pension-related items (750,076)
Claims payable 184,976
Net Cash Provided by Operating Activities $530,027 $3,072,919
NON-CASH TRANSACTIONS:
Retirement of capital assets ($712)
Amortization of bond discount $725
See accompanying notes to basic financial statements
REVIEW DRAFT 36 10/30/2023
FIDUCIARY FUND FINANCIAL STATEMENTS
Fiduciary funds are used to account for assets held by the City as an agent or custodian for other entities.
The financial activities of such funds are excluded from the Government-wide financial statements and
present fund statements that consist of a Statement of Net Position and a Statement of Changes in Net
Position.
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY – PRIVATE PURPOSE
TRUST FUND
Established to account for the activities of the Successor Agency to the San Rafael Redevelopment
Agency.
PT. SAN PEDRO ROAD ASSESSMENT DISTRICT CUSTODIAL FUND
Established to accumulate funds for payment of principal and interest for Pt. San Pedro Road Median
Landscaping Assessment District bonds.
REVIEW DRAFT 37 10/30/2023
Successor Agency
to the Pt. San Pedro
Redevelopment Road Assessment
Agency District
Private-Purpose Custodial
Trust Fund Fund
ASSETS
Cash available for operations (Note 2)$135,693 $241,301
Receivables:
Taxes 65,000 752
Total Assets 200,693 242,053
LIABILITIES
Interest payable 18,816
Total Liabilities 18,816
NET POSITION
Restricted for:
Bondholders 200,693 223,237
Total Net Position $200,693 $223,237
See accompanying notes to financial statements
CITY OF SAN RAFAEL
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2023
REVIEW DRAFT 38 10/30/2023
Successor Agency
to the Pt. San Pedro
Redevelopment Road Assessment
Agency District
Private-Purpose Custodial
Trust Fund Fund
ADDITIONS
Property taxes $630,000 $172,083
Total Additions 630,000 172,083
DEDUCTIONS
General government 114,870 9,758
Payments to bondholders 84,100
Interest expense 13,046 57,184
Total Deductions 127,916 151,042
Change in Net Position 502,084 21,041
NET POSITION
Beginning of year (301,391)202,196
End of year $200,693 $223,237
CITY OF SAN RAFAEL
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
See accompanying notes to financial statements
REVIEW DRAFT 39 10/30/2023
REVIEW DRAFT 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City of
San Rafael (the City) as the Primary Government, with its component units for which the City is
considered financially accountable. The component units discussed below are included in the City's
reporting entity because of the significance of their operational and financial relationships with the
City.
B. Description of Blended Component Unit
The accompanying basic financial statements include all funds and boards and commissions that
are controlled by the City Council. The basic financial statements include the City’s blended
component units, entities for which the City is considered to be financially accountable. A
blended component unit, although a legally separate entity, is in substance, part of the City’s
operations and so data from this entity is combined with the City. The City’s blended component
unit is described below.
San Rafael Joint Powers Financing Authority – The San Rafael Joint Powers Financing
Authority (Authority) was formed by the City of San Rafael and the former San Rafael
Redevelopment Agency (Agency) pursuant to Articles 1 and 2 of Chapter 5 of Division 7 of Title
1 of the Government Code of the State of California for the purpose of assisting in the financing
and refinancing of certain assessment district and redevelopment-related activities in the City. On
March 18, 2013, the Agency was replaced by the California Municipal Finance Authority
(CMFA) in order to allow the life of the Authority to extend beyond that of the Agency. The
Authority is administered by a governing board whose members are the City Council of the City.
Activities of the Authority related to the 2012 Authority Lease Revenue Refunding Bonds are
reported in the Parking Services Enterprise Fund. Activities of the Authority related to the 2018
Authority Lease Revenue Bonds are reported in the City’s General Fund. Separate financial
statements are not prepared for the Authority.
C.Description of Discretely Presented Component Unit
San Rafael Sanitation District – The San Rafael Sanitation District (District) was formed in
1947 under Section 4700 of the California Health and Safety Code to provide wastewater
transmission over the southern two-thirds of the City and adjacent unincorporated areas.
The District is governed by a three-member Board of Directors who are appointed to four-year
terms. The City Council of the City appoints two out of the three board members and has the
ability to remove the two board members at will.
The City contracts with the District to maintain the collection systems in the City and surrounding
unincorporated areas. These employees are paid through the City’s payroll department and
participate in the City’s cost-sharing multiple-employer defined benefit pension plan administered
by the Marin County Employees’ Retirement Association. The employees also participate in the
City’s healthcare benefits plan which includes a provision for postemployment benefits. These
costs are the obligation of the District and not the City. As discussed in Note 4G, a receivable
from the District has been established.
REVIEW DRAFT 41 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The District’s activities are reported as a discretely presented component unit in a separate
column in the basic financial statements which includes the District’s assets, liabilities, revenues,
expenses, and results of operations. The District’s fiscal year ends on June 30 and its separately
issued component unit financial statements can be obtained at the San Rafael Sanitation District,
111 Morphew Street, San Rafael, California 94901.
D.Basis of Presentation
Government-wide Statements – The Statement of Net Position and the Statement of Activities
display information about the primary government (the City) and its component units. These
statements include the financial activities of the overall City government, except for fiduciary
activities. Interfund transfers and amounts owed between funds within the primary government
have been eliminated from the statements. Amounts representing interfund services and uses
remain in the statements. These statements distinguish between the governmental and business-
type activities of the City. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other nonexchange transactions. Business-type activities are
financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues
for each segment of the business-type activities of the City and for each function of the City’s
governmental activities. Direct expenses are those that are specifically associated with a program
or function. Program revenues include (a) charges paid by the recipients of goods or services
offered by the programs, (b) grants and contributions that are restricted to meeting the operational
needs of a particular program and (c) fees, grants and contributions that are restricted to financing
the acquisition or construction of capital assets. Revenues that are not classified as program
revenues, including all taxes, are presented as general revenues.
Fund Financial Statements – The fund financial statements provide information about the City’s
funds, including fiduciary funds and blended component units. Separate statements for each fund
category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund
financial statements is on major individual governmental and enterprise funds, each of which is
displayed in a separate column. All remaining governmental and enterprise funds are aggregated
and reported as non-major funds.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are those in
which each party receives and gives up essentially equal values. Nonoperating revenues, such as
subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
E.Major Funds and Other Reported Funds
Major funds are defined as funds that have either assets and deferred outflows of resources,
liabilities and deferred inflows of resources, revenues, or expenditures/expenses equal to ten
percent of their fund-type total and five percent of the grand total. The General Fund is always a
major fund. The City may also select other funds it believes should be presented as major funds.
REVIEW DRAFT 42 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The City reported the following major governmental funds in the accompanying financial
statements:
General Fund – Established to account for all financial resources necessary to carry out basic
governmental activities of the City which are not accounted for in another fund.
Traffic and Housing Mitigation Special Revenue Fund – Established to maintain long-term
developer contributions for major housing and street improvement projects.
Gas Tax Special Revenue Fund – Established to receive and expend the City’s allocation of
State gasoline taxes.
Essential Facilities Capital Projects Fund – Established to account for major capital
improvements to public safety facilities.
The City reported its only enterprise fund as a major fund in the accompanying financial
statements. The enterprise fund is:
Parking Services Fund – Established to maintain parking garages, lots, and spaces in the
Downtown Parking District, and to pay for parking enforcement, meter collection, and downtown
enforcement services.
The City also reports the following fund types:
Internal Service Funds – These funds account for: building maintenance; vehicle, equipment,
radio, and telephone replacement; employee benefits; liability insurance; workers’ compensation;
dental insurance; employee retirement; retiree medical (OPEB); and sewer maintenance.
Fiduciary Funds – These funds include: Successor Agency to the Redevelopment Agency Private-
Purpose Trust Fund – which accounts for the accumulation of resources held by the Successor
Agency to the Redevelopment Agency to be used for payments at appropriate amounts and times
in the future; and Pt. San Pedro Road Assessment District Custodial Fund – which accumulates
funds for the payment of principal and interest for Pt. San Pedro Road Median Landscaping
District bonds. The financial activities of these funds are excluded from the government-wide
financial statements, but are presented in the separate Fiduciary Fund financial statements.
F. Basis of Accounting
The government-wide, proprietary, fiduciary and discretely presented component unit financial
statements are reported using the economic resources measurement focus and the full accrual
basis of accounting. Revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred, regardless of when the related cash flows take place.
REVIEW DRAFT 43 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Governmental funds are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Under this method, revenues are recognized when
measurable and available. The City considers all revenues reported in the governmental funds to
be available if the revenues are collected within sixty days after year-end with the exception of
sales and use tax revenues which are reported as available if collected within ninety days of year-
end. Expenditures are recorded when the related fund liability is incurred, except for principal
and interest on long-term debt, including lease and subscription liabilities, claims and judgments,
and compensated absences, which are recognized as expenditures to the extent they have
matured. General capital asset acquisitions, including entering into contracts giving the City the
right-to-use leased assets, are reported as expenditures in governmental funds. Proceeds from
long-term debt and financing through leases are reported as other financing sources.
Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental
revenues, interest revenue, charges for services, fines, and forfeitures. Other receipts and taxes
are recognized as revenue when the cash is received.
Non-exchange transactions, in which the City gives or receives value without directly receiving
or giving equal value in exchange include taxes, grants, entitlements, and donations. On the
accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or
assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in
which all eligibility requirements have been satisfied. Under the terms of grant agreements, the
City may fund certain programs with a combination of cost-reimbursement grants, categorical
block grants, and general revenue. Thus, both restricted and unrestricted net position may be
made available to finance program expenditures. The City’s policy is to first apply restricted
grant resources to such programs, followed by general revenues if necessary.
The City considers restricted shared state revenues such as gasoline taxes and public safety sales
taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits,
charges for services, and program grants as program revenues.
Certain indirect costs are included in program expenses reported for individual functions and
activities.
G. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net assets that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until
then.
REVIEW DRAFT 44 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In addition to liabilities, the statement of financial position or balance sheet will sometimes report
a separate section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources, represents an acquisition of net assets that applies to a future
period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
Unavailable revenue, a type of deferred inflow of resources, is reported in the governmental
funds balance sheet. The governmental funds report unavailable revenues from intergovernmental
receivables and deferred amounts related to leases. These amounts are deferred and recognized as
an inflow of resources in the period that the amounts become available.
H. Budgets, Budgetary Accounting, and Encumbrances
The City adopts an annual budget which is effective July 1 for the ensuing fiscal year. The budget
reflects estimated revenues and expenditures, except for the capital projects funds. Appropriations
and spending authorizations for projects in the capital projects funds and some special revenue
funds are approved by the City Council on a multi-year basis. From the effective date of the budget,
which is adopted at the department level, the amounts stated therein as proposed expenditures
become appropriations to the various City departments. The City Council may amend the budget by
resolution during the fiscal year in order to respond to emerging needs, changes in resources, or
shifting priorities. Expenditures may not exceed appropriations at the fund level, which is the legal
level of control. The City Manager is authorized to transfer budgeted amounts between accounts,
departments, or funds; the Council must approve any increase in the City’s operating expenditures,
appropriations for capital projects, and transfers between major funds and reportable fund groups.
Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the
General Fund and Special Revenue Funds.
Encumbrance accounting, under which purchase orders for expenditures are recorded in order to
reserve that portion of the applicable appropriation, is employed as an extension of the budgetary
process. All unencumbered appropriations lapse at year end.
I.Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments
(including all restricted assets) with maturities of three months or less when purchased to be cash
equivalents. The City maintains a cash and investment pool that is available for use by all funds.
As the proprietary funds' share of this pool is readily available when needed, such share is also
considered to be cash equivalent.
J.Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements. The cost of
prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
REVIEW DRAFT 45 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K.Capital Assets
City
Contributed capital assets are valued at their estimated acquisition value on the date contributed.
Donated capital assets, donated works of art and similar items, and capital assets received in a
service concession arrangement are recorded at acquisition value. All other capital assets are
valued at historical cost or estimated historical cost if actual historical cost is not available, except
for intangible right-to-use lease assets and intangible right-to-use subscription assets, the
measurement of which is discussed in Note 1R and Note 1S, respectively, below. Major outlays
for capital assets and improvements are capitalized as projects are constructed.
City policy has set the capitalization thresholds for reporting capital assets at the following:
General capital assets ranging from $5,000 to $50,000
Infrastructure capital assets ranging from $25,000 to $250,000
Depreciation is provided using the straight-line method which means the cost of the asset is divided
by its expected useful life in years and the result is charged to expense each year until the asset is
fully depreciated. The purpose of depreciation is to spread the cost of capital assets equitably among
all users over the life of these assets. The amount charged to depreciation expense each year
represents that year’s pro rata share of the cost of capital assets.
The City has assigned the useful lives listed below to capital assets:
Buildings, improvements, and structures 20 – 50 years
Machinery and equipment 4 – 20 years
Infrastructure 15 – 50 years
Right to use leased building 35 years
Right to use leased equipment 1.5 – 5 years
Right to use subscription asset 5 – 10 years
District
Collection systems and facilities purchased or constructed are stated at cost. Assets contributed are
recorded at the estimated acquisition value at the date received. Interest is capitalized for assets
constructed when applicable. The costs of normal repairs and maintenance that do not add to the
value of an asset or materially extend asset lives are not capitalized. Improvements are capitalized
and depreciated over the remaining useful lives of the related capital assets, as applicable.
Applicable capital assets must be capitalized for amounts $1,000 or above and may be capitalized
for amounts from $500 to $1,000 if determined to be sensitive. Depreciation is provided by the
straight-line method over the estimated useful lives of capital assets as follows:
Subsurface lines 50 – 80 years
Sewage collection facilities 5 – 50 years
General plant and administrative facilities 3 – 15 years
REVIEW DRAFT 46 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
L. Compensated Absences
Compensated absences are accrued as earned. Upon termination, employees are paid for all unused
vacation at their current hourly rates. Unused sick leave may be compensable up to 600 hours,
depending upon the provisions of the MOUs, which vary by bargaining unit.
The long-term portion of the liability for compensated absences for governmental fund type
operations is recorded as compensated absences in the government-wide financial statements.
Compensated absences are liquidated by the fund that has recorded the liability. Proprietary fund
liabilities are recorded within their respective funds. The long-term portion of governmental
activities compensated absences is liquidated primarily by the General Fund.
The changes in compensated absences as of June 30, 2023 were as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance $4,287,811 $108,147 $4,395,958
Additions 3,003,055 90,749 3,093,804
Payments (3,060,721) (67,348) (3,128,069)
Ending Balance $4,230,145 $131,548 $4,361,693
Current Portion $528,768 $16,444 $545,212
M. Property Tax Levy, Collection and Maximum Rates – City
State of California Constitution Article XIII A provides that the combined maximum property tax
rate on any given property may not exceed 1% of its assessed value unless an additional amount for
general obligation debt has been approved by voters. Assessed value is calculated at 100% of market
value as defined by Article XIII A and may be adjusted by no more than 2% per year unless the
property is sold, transferred, or substantially improved. The State Legislature has determined the
method of distribution of receipts from a 1% tax levy among the counties, cities, school districts and
other districts. Marin County assesses properties, bills for, and collects property taxes on the
schedule that follows:
Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31)
50% on February 1 (April 10)
REVIEW DRAFT 47 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
For assessment and collection purposes, property is classified as either “secured” or “unsecured” and
is listed accordingly on separate parts of the assessment roll. The “secured roll” is that part of the
assessment roll containing State-assessed property and real property having a tax lien that is
sufficient, in the opinion of the County Assessor, to secure payment of the taxes. Unsecured property
comprises all taxable property not attached to land, such as personal property or business property.
Every tax levied by a county that becomes a lien on secured property has priority over all present and
future private liens arising pursuant to State law on the secured property, regardless of the time of the
creation of the other liens. A tax levied on unsecured property does not become a lien against the
taxed unsecured property, but may become a lien on other property owned by the taxpayer.
Property taxes are levied and recorded as revenue when received in the fiscal year of levy because of
the adoption of the “alternate method of property tax distribution,” known as the Teeter Plan, by the
City and the County of Marin. The Teeter Plan authorized the auditor-controller of the County of
Marin to allocate 100% of the secured property taxes billed, but not yet paid. The County of Marin
remits tax monies to the City in three installments, as follows:
55% remitted on December 15
40% remitted on April 15
5% remitted on June 15
N. Sewer Charges – District
Sewer charges are billed and collected on behalf of the District by the County of Marin as a
special assessment on annual property tax billings. Property taxes are levied on January 1 and are
due in two equal installments on November 1 and February 1 and become delinquent December
10 and April 10, for the first and second installments, respectively. In accordance with the Teeter
Plan, the County remits to the District all charges which are assessed and the county retains
responsibility for collecting past due amounts.
The Teeter Plan provides that the County advance the District its share of the annual gross levy of
secured property taxes and special assessments. In consideration, the District gives the County of
Marin its rights to penalties and interest on delinquent secured property tax receivables and actual
proceeds collected.
O. Connection Fees – District
Connection fees represent a one-time contribution of resources to the District imposed on
contractors and developers for the purpose of financing capital improvements. Connection fees
are recognized after non-operating revenues (expenses) in the statement of revenues, expenses,
and changes in net position. The District utilizes connection fees received on a first-in-first-out
basis to finance current year capital projects. Accordingly, if there is a balance of connection fees
available at year-end, it is classified as restricted net position.
REVIEW DRAFT 48 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
P. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The City
categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation
techniques used to measure fair value into three levels based on the extent to which inputs used in
measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are
observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair
value hierarchy, the measurement is considered to be based on the lowest priority level input that is
significant to the entire measurement.
Q.Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent asset and liabilities at the dates of the financial statements
and the reported amounts of revenues and expenditures/expenses during the reporting periods.
Actual results could differ from those estimates.
R.Leases
A lease is defined as a contract that conveys control of the right to use another entity’s
nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an
exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land,
vehicles, and equipment.
Lessee – The City is a lessee for noncancelable leases of equipment and land. The City
recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the
government‐wide financial statements. The City recognizes lease liabilities in accordance with
the capitalization policy for the underlying asset as discussed in Note 1K.
At the commencement of a lease, the City initially measures the lease liability at the present value
of payments expected to be made during the lease term. Subsequently, the lease liability is
reduced by the principal portion of lease payments made. The lease asset is initially measured as
the initial amount of the lease liability, adjusted for lease payments made at or before the lease
commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on
a straight‐line basis over the lesser of its useful life or the life of the lease agreement.
REVIEW DRAFT 49 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Key estimates and judgments related to leases include how the City determines (1) the discount
rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease
payments as follows:
•The City uses the interest rate charged by the lessor as the discount rate. When the
interest rate charged by the lessor is not provided, the City generally uses its estimated
incremental borrowing rate as the discount rate for leases.
•The lease term includes the noncancelable period of the lease.
•Lease payments included in the measurement of the lease liability are composed of fixed
payments and purchase option price that the City is reasonably certain to exercise, if
applicable.
The City monitors changes in circumstances that would require a remeasurement of its lease and
will remeasure the lease asset and liability if certain changes occur that are expected to
significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term
lease liabilities on the statement of net position.
Lessor – The City is a lessor for noncancellable leases of certain buildings and land. The City
recognizes a lease receivable and a deferred inflow of resources in the government‐wide and
governmental fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present
value of payments expected to be received during the lease term. Subsequently, the lease
receivable is reduced by the principal portion of lease payments received. The deferred inflow of
resources is initially measured as the initial amount of the lease receivable, adjusted for lease
payments received at or before the lease commencement date. Subsequently, the deferred inflow
of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to
discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as
follows:
•The City uses its estimated incremental borrowing rate as the discount rate for leases.
•The lease term includes the noncancelable period of the lease.
•Lease receipts included in the measurement of the lease receivable is composed of fixed
payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and
will remeasure the lease receivable and deferred inflows of resources if certain changes occur that
are expected to significantly affect the amount of the lease receivable.
REVIEW DRAFT 50 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
S.Subscription-Based Information Technology Arrangements (SBITAs)
A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys
control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in
combination with tangible capital assets (the underlying IT assets), as specified in the contract for
a period of time in an exchange or exchange-like transaction.
At the commencement of a SBITA, the City initially measures the subscription liability at the
present value of payments expected to be made during the contract term. Subsequently, the
subscription liability is reduced by the principal portion of payments made. The subscription asset
is initially measured as the initial amount of the subscription liability, adjusted for payments
made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently,
the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or
the useful life of the underlying IT assets.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount
rate it uses to discount the expected subscription payments to present value, (2) subscription term,
and (3) subscription payments as follows:
•The City uses the interest rate charged by the IT vendor as the discount rate. When the
interest rate charged by the IT vendor is not provided, the City generally uses its
estimated incremental borrowing rate as the discount rate for subscription liabilities.
•The subscription term includes the noncancellable period of the subscription.
•Subscription payments included in the measurement of the subscription liability are
composed of fixed payments and purchase option price that the City is reasonably certain
to exercise.
The City monitors changes in circumstances that would require a remeasurement of its
subscription and will remeasure the subscription asset and liability if certain changes occur that
are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities are reported
with long-term debt on the statement of net position.
T.New Accounting Pronouncements
GASB Statement No. 96 – In May 2020, GASB issued Statement No. 96, Subscription-Based
Information Technology Arrangements. The primary objective of this Statement is to improve
financial reporting by establishing a definition for subscription-based information technology
arrangements (SBITAs) and providing uniform guidance for accounting and financial reporting
for transactions that meet that definition. The provisions of this Statement were implemented
during fiscal year 2023. As part of the implementation of this Statement, the City has accounted
for certain subscription transactions, which require the restatement of beginning net position of
the governmental activities capital assets and subscription liabilities in the amount of $1,559,451,
and the net effect on beginning net position and fund balance is zero. See the subscription
disclosure in Note 14.
REVIEW DRAFT 51 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS
A. Policies
The City maintains an investment policy that emphasizes safety, liquidity, and reasonable market
yield. This policy is reviewed and approved by the City Council annually.
The City invests in individual investments and in investment pools. Individual investments are
evidenced by specific identifiable securities instruments, or by an electronic entry registering the
owner in the records of the institution issuing the security, called the book entry system. In order to
increase security, the City employs the trust department of a bank as the custodian of certain City
managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities
with a market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a
market value of 150% of the deposit, as collateral for these deposits. Under California Law this
collateral is held in a separate investment pool by another institution in the City’s name and places
the City ahead of general creditors of the institution.
The City’s investments are carried at fair value, as required by generally accepted accounting
principles. The City adjusts the carrying value of its investments to reflect their fair value at each
fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
B.Classification
Cash and investments as of June 30, 2023, are classified in the financial statements as shown below,
based on whether or not their use is restricted under the terms of City debt instruments or agency
agreements.
Statement of Net Position:
City of San Rafael:
Cash and investments available for operations $108,996,490
Restricted cash and investments 707,371
Total Primary Government Cash and Investments 109,703,861
San Rafael Sanitation District (Component Unit):
Cash and investments available for operations 47,632,637
Total San Rafael Sanitation District Cash and Investments 47,632,637
Statement of Fiduciary Net Position (separate statement):
Successor Agency to the Redevelopment Agency Private Purpose Trust Fund:
Cash available for operations 135,693
Pt. San Pedro Road Assessment District Custodial Fund:
Cash available for operations 241,301
Total Fiduciary Fund Cash and Investments 376,994
Total Cash and Investments $157,713,492
REVIEW DRAFT 52 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
The City does not normally allocate investments by fund. Each proprietary fund’s portion of Cash
and Investments Available for Operations is in substance a demand deposit available to finance
operations and is considered a cash equivalent in preparing the statement of cash flows.
C. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s investment policy and the California Government Code allow the City to invest in the
following securities provided the credit ratings of the issuers are acceptable to the City and
approved percentages and maturities are not exceeded. The table below also identifies certain
provisions of the California Government Code, or the City’s Investment Policy where it is more
restrictive:
Minimum Maximum Maximum
Maximum Credit Percentage of Investment in
Authorized Investment Type Maturity Quality (a) Portfolio (a)One Issuer
U.S. Government Obligations 5 years N/A No limit No limit
Federal Agency Securities and Instruments 5 years N/A No limit No limit
Repurchase Agreements 1 year N/A No limit No limit
Prime Commercial Paper 270 days A-1 25% 10% of total outstanding
commercial paper and
5% of portfolio
Banker's Acceptances 180 days A-1 40%$2,000,000
Medium-Term Corporate Notes 5 years A 30%5% of portfolio
Negotiable Certificates of Deposit 5 years A-1 30%5% of portfolio
Non-negotiable Certificates of Deposit 5 years N/A 30%5% of portfolio
Local Agency Investment Fund N/A N/A N/A $75m per Account
Money Market Funds N/A AAA 10%N/A
Mortgage and Asset-Backed Obligations 5 years AA 20%N/A
Supranational Securities 5 years AA 15%N/A
Limited Obligation Improvement Bonds Related to
Special Assessment Districts and Special Tax
Districts issued by the City of San Rafael 30 years N/A N/A N/A
(a) At time of purchase
The San Rafael Sanitation District maintains all of its cash in the County of Marin pooled
investment fund for the purpose of increasing interest earnings through pooled investment
activities.
The County Pool includes both voluntary and involuntary participation from external entities.
The District is a voluntary participant. The State of California statutes require certain special
districts and other governmental entities to maintain their cash surplus with the County Treasurer.
The District has approved by resolution, the investment policy of the County of Marin which
complies with the California Government Code.
REVIEW DRAFT 53 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents
under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged
as reserves to be used if there are insufficient resources to meet debt repayment obligations. The
California Government Code requires these funds to be invested in accordance with City
ordinance bond indentures or State statute. The table below identifies the investment types that
are authorized for investments held by fiscal agents. The table also identifies certain provisions of
these debt agreements:
Maximum
Maturity
U.S. Treasury Obligations 5 years to no
maximum
N/A No Limit
U.S. Agency Securities 3 - 5 years N/A No Limit
U.S. Agency Instruments 5 years N/A No Limit
Repurchase Agreements 1 year A-1 No Limit
Bankers’ Acceptances 360 days Highest Category Rating No Limit
Money Market Mutual Funds N/A Highest Category Rating No Limit
Prime Commercial Paper 270 days Highest Category Rating No Limit
N/A Highest Category Rating No Limit
Medium-Term Corporate Notes 5 Years A No Limit
Non-Negotiable Certificates of Deposit 180 Days N/A No Limit
Negotiable Certificates of Deposit 5 Years N/A No Limit
Local Agency Investment Fund N/A N/A No Limit
California Asset Management Program N/A N/A No Limit
Deposit Accounts N/A A No Limit
State or Local Bonds N/A A No Limit
Defeasance Securities N/A N/A No Limit
(a) At time of purchase.
(b) Guaranteed Investment Contracts must be fully collaterized with U.S. Treasury Obligations or U.S. Agency Obligations.
Source: PYFS; In FY 2021, eliminated Muni, State and Local Bonds because those should not be listed here.
Maximum Percentage
of Portfolio
Guaranteed Investment Contracts (fully collateralized)
(b)
Authorized Investment Type Minimum Credit Quality (a)
REVIEW DRAFT 54 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
E. Fair Value Hierarchy
The following is a summary of the fair value hierarchy of the fair value of investments of the
City as of June 30, 2023:
(a)(b)(c)
Level 1 Level 2 Level 3 Total
City:
Money Market Funds $1,470,184 $1,470,184
U.S. Government Obligations $15,306,615 15,306,615
Federal Agency Securities and Instruments 8,669,294 8,669,294
Medium-Term Corporate Notes 19,536,092 19,536,092
Investment in Pt. San Pedro Bonds $949,493 (d)949,493
$15,306,615 $29,675,570 $949,493 45,931,679
Investments Exempt from Fair Value Hierarchy:
Local Agency Investment Fund 50,235,434
Marin County Investment Pool 82,372
Total Investments 96,249,484
Cash in banks and on hand 13,454,377
Total City Cash and Investments 109,703,861
Fiduciary:
Cash in banks 376,994
Total Fiduciary Cash 376,994
Total City and Fiduciary Cash and Investments 110,080,855
San Rafael Sanitation District:
Marin County Investment Pool 47,632,637
47,632,637
Total Cash and Investments $157,713,492
Source: The above GASB 72 Classifications in the different input levels are provided by US Bank.
(a)
(b)
(c)
(d)This pertains to the City-owned bonds of its investments in Pt. San Pedro Special Assessment District that has no trading
market and is thus listed under Level 3. This bond is valued using discounted cash flow techniques.
District's Total Cash and Investments
Level 1 inputs are quoted prices in active market for identical assets. These are quoted prices in active markets for identical
assets at the measurement date. An active market for the asset is a market in which transactions
for the asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2 inputs are significant other observable inputs. These inputs include: a) Quoted prices for similar
assets in active markets; b) Quoted prices for identical or similar assets in markets that are not active; and
c) Inputs other than quoted prices that are observable for an asset.
Level 3 inputs are significant unobservable inputs. These inputs shall be used to measure fair value to the extent that
observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset at
the measurement date.
REVIEW DRAFT 55 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
F. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to changes in market interest rates. The City also manages its interest rate risk by holding
most investments to maturity, thus reversing unrealized market gains and losses.
Information about the sensitivity of the fair values of the City’s investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that
shows the distribution of the City’s investments by maturity or earliest call date:
12 Months More than
Type of Investment or Less 12 Months Total
City:
Money Market Funds $1,470,184 $1,470,184
Local Agency Investment Fund 50,235,434 50,235,434
Marin County Investment Pool 82,372 82,372
U.S. Government Obligations 5,955,576 $9,351,039 15,306,615
Federal Agency Securities and Instruments 3,656,808 5,012,486 8,669,294
Medium-Term Corporate Notes 6,842,781 12,693,312 19,536,092
Investment in Pt. San Pedro Bonds 949,493 949,493
Total Investments $68,243,154 $28,006,330 96,249,484
Cash in banks and on hand 13,454,377
Total City Cash and Investments 109,703,861
Fiduciary:
Cash in banks 376,994
Total Fiduciary Cash 376,994
Total City and Fiduciary Cash and Investments 110,080,855
San Rafael Sanitation District:
Marin County Investment Pool 47,632,637
Total District's Cash and Investments 47,632,637
Total Cash and Investments $157,713,492
REVIEW DRAFT 56 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The City reports its investment in LAIF at the fair value amount provided by LAIF,
which is the same as the value of the pool share. The balance is available for withdrawal on
demand, and is based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per
month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75
million and at least 24 hours advance notice for withdrawals of $10 million or more.
Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed
securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued
by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and
corporations. At June 30, 2023, these investments matured in an average of 260 days.
Money Market Mutual Funds are available for withdrawal on demand. The investment portfolio of
the Money Market Mutual Fund had an average maturity of 12 days per August fact sheet.
The County’s investment pool is not registered with the Securities and Exchange Commission as an
investment company. The pool has a credit rating of “AAA/V1.” Investments made by the Treasurer
are regulated by the California Government Code and by the County’s investment policy. The
objectives of the policy are in order of priority, safety, liquidity, yield, and public trust. The County
has established a treasury oversight committee to monitor and review the management of public
funds maintained in the investment pool in accordance with Article 6 Section 27131 of the California
Government Code. The oversight committee and the Board of Supervisors review and approve the
investment policy annually. The County Treasurer prepares and submits a comprehensive investment
report to the members of the oversight committee and the investment pool participants every month.
The report covers the types of investments in the pool, maturity dates, par value, actual costs, and fair
value.
REVIEW DRAFT 57 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
G. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. Presented below is the actual rating as of June 30, 2023, for each of the City’s or
District’s investment types as provided by Standard and Poor’s or Moody’s investment rating
systems, except as noted:
Percentage
Amount of
Investments Invested Investments NRSRO Rating
City:
Money Market Funds $1,470,184 2%AAAm
Marin County Investment Pool 82,372 < 1%AAA/V1
U.S. Government Obligations 15,306,615 16%AAA
Federal Agency Securities and Instruments 8,669,294 9%AAA
Medium-Term Corporate Notes 19,536,092
20%
AAA, AA2, AA3, A1, A2,
A3
Local Agency Investment Fund 50,235,434 52%Not Rated
Investment in Pt. San Pedro Bonds 949,493 1%Not Rated
Total City Investments 96,249,484
San Rafael Sanitation District:
Marin County Investment Pool 47,632,637 AAA/V1
Total Investments $143,882,121
H. Concentration Risk
Investments in the securities of any individual issuers, other than U.S. Treasury securities, mutual
funds, and external investment pools, that represent 5% or more of the total entity–wide investments
are as follows at June 30, 2023:
Percentage
of
Reporting Unit Issuer Investment Type Amount Investments
Entity-wide Federal Home Loan Bank Federal Agency Securities and Instruments $6,122,080 6%
REVIEW DRAFT 58 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 3 – INTER-FUND TRANSACTIONS
A. Transfers
Resources may be transferred from one City fund to another. Transfers routinely fund capital
projects or capital outlays, lease or debt service payments, and operating expenses.
Transfers between funds during the fiscal year ended June 30, 2023, were as follows:
From Fund To Fund Amount
General Fund Essential Facilities Capital Projects Fund $586,926 (A)
Non-Major Governmental Funds 12,721,200 (A) (B)
Internal Service Funds 3,485,000 (A)
Gas Tax Special Revenue Fund Traffic and Housing Mitigation Special Revenue Fund 8,897 (B)
Parking Services Enterprise Fund General Fund 436,322 (C)
Non-Major Governmental Funds 85,000 (A)
Internal Service Funds General Fund 683,750 (C)
Gas Tax Special Revenue Fund 25,013 (A)
Non-Major Governmental Funds 11,253 (A)
Non-Major Governmental Funds General Fund 11,070 (B)
Gas Tax Special Revenue Fund 7,387 (B)
$18,061,818
(A) Transfers for administrative costs, grant matching, recreation, and other program support.
(C) Transfers for debt service.
(B)Transfers for project support.
NOTE 4 – LOANS AND LEASES RECEIVABLE
A. Summary of Loans Receivable
The City has identified the portion of fund balance represented by these loans as nonspendable or
restricted as discussed in Note 8. As of June 30, 2023, these loans consisted of the following:
Employee Loans $1,059
Centertown Associates 936,446
3301 Kerner 862,774
One "H" Street Associates 28,574
Vivalon 1,893,438
Total $3,722,291
REVIEW DRAFT 59 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
B. Employee Loans
The City administers a computer loan program that supports the use of technology by employees.
Employees are permitted to borrow up to $1,500 for the purchase of computer hardware and
software. The loans are interest-free, have maximum terms of one year, and are repaid through
automatic payroll deductions. As of June 30, 2023, the balance of the employee loans receivable
was $1,059.
C.Centertown Associates Loan
On August 20, 1990, the former Redevelopment Agency loaned Centertown Associates, Ltd,
$303,000 at 3% interest due semiannually for the construction of a 60-unit affordable apartment
complex and was fully secured by a deed of trust. With the dissolution of the Redevelopment
Agency effective February 1, 2012, the assets of the Agency’s Low and Moderate Income
Housing Fund, including the Centertown Associates loan, were assumed by the City’s Low and
Moderate Income Housing Special Revenue Fund. On October 22, 2021, City Council approved
the Amended and Restated Promissory Note for the loan. The amendment extended the due date
to October 22, 2078, for the original loan balance of $266,781 consisting of $219,982 in
remaining principal and $46,799 in accrued interest as of the date of the amended loan agreement.
In addition, the amendment included an additional loan in the amount of $643,095 for a ground
lease for certain land located at 855 C Street, currently improved with approximately sixty units
of affordable housing. Interest is compounded at 1.74% annually and is repayable from residual
receipts as defined under the agreement. Repayment is due on October 22, 2078. The amended
note is secured by a Leasehold Deed of Trust with Assignment of Rents and Security Agreement
on the Property. As of June 30, 2023, the balance of the loan including principal and accrued
interest was $936,446.
D.3301 Kerner Loan
On March 21, 2023, the City entered into a loan agreement in the amount of $857,500 to fund the
construction of a 41-unit multifamily rental housing development affordable to homeless or
formerly homeless households with mental illness at rents affordable to extremely low- and very
low- income households. The term is the later of (a) the fifty-seventh anniversary of the date the
Deed of Trust is recorded in the Recorder’s Office of Marin County or (b) the fifty-fifth
anniversary of the date on which construction financing is converted into permanent financing.
Annual payments equal to the City’s proportionate share of residual receipts attributable to the
prior calendar year are due beginning June 1st after the end of the calendar year of the date that
the construction loan for the property converts to a permanent loan. The note is secured by a Deed
of Trust. As of June 30, 2023, the balance of the loan and accrued interest was $862,774.
E.One “H” Street Associates Loan
On January 18, 1994, the City loaned One “H” Street Associates $100,000 at zero percent interest
with annual payments of $2,857 and the final payment is due January 18, 2034. As of June 30,
2023, the balance of this loan was $28,574.
REVIEW DRAFT 60 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
F.Vivalon Loan
On April 1, 2022, the City entered into a loan agreement in the amount of $1,825,000 to fund
construction of the Vivalon Healthy Aging Center located at 999 3rd Street. The site will include
66 one-bedroom and studio units for older adults and approximately 20% of the units will be
supportive housing. The term is the later of (a) the fifty-seventh anniversary of the date the Deed
of Trust is recorded in the Recorder’s Office of Marin County or (b) the fifty-fifth anniversary of
the date on which construction financing is converted into permanent financing. Annual payments
equal to the City’s proportionate share of residual receipts attributable to the prior calendar year
are due beginning June 1st after the end of the calendar year that the construction loan for the
property converts to a permanent loan. The note is secured by a Deed of Trust. As of June 30,
2023, the balance of the loan and accrued interest was $1,893,438.
G. Other Receivables – Long-Term Receivable from San Rafael Sanitation District
The City provides staffing to San Rafael Sanitation District (District) under a contractual
arrangement originated in 1987 that requires the District to pay all related employee costs
incurred by the City on its behalf. Accordingly, the cost of providing pension and post-
employment health benefits incurred by the City for the District staff but not yet funded are
reflected by the District as an obligation, and by the City as a noncurrent receivable. The
obligation as of June 30, 2023, is $2,002,944, and is composed of the following:
Defined benefit pension liability allocation $1,403,972
Other post-employment benefit liability allocation 598,972
Total long-term receivable from San Rafael Sanitation District $2,002,944
REVIEW DRAFT 61 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
H. Leases Receivable
The City from to time to time engages in lease arrangements allowing the right for others to use
various owned land and buildings for the public benefit. As of June 30, 2023, these leases and
related deferred inflows of resources consisted of the following:
Deferred
Leases Inflows of
Receivable Resources
Marin History Museum $42,363 $39,939
Yacht Club 177,143 169,488
Trans Bay Cable 276,042 260,196
Total $495,548 $469,623
On August 1, 2021, the City began leasing a building to the Marin History Museum with monthly
payments of $1,200 - $1,260 through July 1, 2026. The City recognized $12,953 in lease revenue
and $2,444 in interest revenue during the current fiscal year related to this lease. Also, the City
has a deferred inflow of resources associated with this lease that will be recognized as revenue
over the lease term.
On April 1, 2014, the City began leasing property to the San Rafael Yacht Club. The lease was
extended during fiscal year 2022 and lease payments are due annually with an initial amount of
$28,699 commencing March 31, 2022. Lease payments are to be increased by 5% every two
years thereafter, until the end of the lease on March 31, 2029. The City recognized $28,248 in
lease revenue and $4,036 in interest revenue during the current fiscal year related to this lease.
Also, the City has a deferred inflow of resources associated with this lease that will be recognized
as revenue over the lease term.
On January 1, 2007, the City began leasing land to a third party for a cable operation. Lease
payments are due annually with an initial amount of $33,500 commencing March 31, 2022. Lease
payments are to be increased by 3% every year thereafter, until the end of the lease on January 1,
2031. The City recognized $32,525 in lease revenue and $9,045 in interest revenue during the
current fiscal year related to this lease. Also, the City has a deferred inflow of resources
associated with this lease that will be recognized as revenue over the lease term.
REVIEW DRAFT 62 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 5 – CAPITAL ASSETS
Changes in capital assets during the fiscal year consisted of:
Balance
June 30, 2022 Balance
(as restated) Additions Retirements Transfers June 30, 2023
Governmental Activities
Capital assets not being depreciated:
Land $84,025,659 $84,025,659
Construction in progress 22,485,220 $23,773,676 ($3,676,791) 42,582,105
Total capital assets not being depreciated 106,510,879 23,773,676 (3,676,791) 126,607,764
Capital assets being depreciated:
Land improvements 9,762,567 1,089,012 10,851,579
Buildings and structures 119,165,142 119,165,142
Machinery and equipment 20,497,081 1,548,080 ($51,909) 23,238 22,016,490
Infrastructure 234,558,558 2,564,541 237,123,099
Intangible right-to-use leased building 5,476,219 5,476,219
Intangible right-to-use leased equipment 258,365 258,365
Intangible right-to-use subscription asset 1,559,451 1,559,451
Total capital assets being depreciated 391,277,383 1,548,080 (51,909) 3,676,791 396,450,345
Less accumulated depreciation and amortization for:
Land improvements (7,351,565) (68,114)(7,419,679)
Buildings and structures (27,057,991) (2,862,973)(29,920,964)
Machinery and equipment (15,107,704) (1,036,353) 51,197 (16,092,860)
Infrastructure (151,545,971) (5,654,685)(157,200,656)
Intangible right-to-use leased building (156,463) (156,464)(312,927)
Intangible right-to-use leased equipment (80,740) (80,740)(161,480)
Intangible right-to-use subscription asset (285,924)(285,924)
Total accumulated depreciation and amortization (201,300,434) (10,145,253) 51,197 (211,394,490)
Total net capital assets being depreciated and amortized 189,976,949 (8,597,173) (712) 3,676,791 185,055,855
Total governmental activity capital asse ts $296,487,828 $15,176,503 ($712)$311,663,619
During fiscal year 2023, the City implemented the provisions of GASB Statement No. 96,
Subscription-Based Information Technology Arrangements, which required the restatement of
capital assets, specifically to incorporate an intangible right-to-use subscription asset. As a result, an
initial right-to-use subscription asset was recorded in the amount of $1,559,451 as of July 1, 2022.
The subscription asset is offset with a subscription liability as discussed in Note 14.
REVIEW DRAFT 63 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 5 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2022 Additions June 30, 2023
Business-type Activities
Capital assets not being depreciated:
Land $8,620,853 $8,620,853
Total capital assets not being depreciated 8,620,853 8,620,853
Capital assets being depreciated:
Buildings and structures 10,713,814 10,713,814
Machinery and equipment 940,164 $106,742 1,046,906
Total capital assets being depreciated 11,653,978 106,742 11,760,720
Less accumulated depreciation for:
Buildings and structures (4,126,773) (205,362) (4,332,135)
Machinery and equipment (867,328) (19,693) (887,021)
Total accumulated depreciation (4,994,101) (225,055) (5,219,156)
Total net capital assets being depreciated 6,659,877 (118,313) 6,541,564
Total business-type activity capital assets $15,280,730 ($118,313) $15,162,417
Balance Balance
June 30, 2022 Additions June 30, 2023
San Rafael Sanitation District
Capital assets not being depreciated:
Land and easements $115,329 $115,329
Construction in progress 822,409 $6,831,368 7,653,777
Total capital assets not being depreciated 937,738 6,831,368 7,769,106
Capital assets being depreciated:
Subsurface lines 45,494,507 67,028 45,561,535
Sewage collection facilities 47,915,613 67,417 47,983,030
General plant and administration 2,366,681 2,366,681
Total capital assets being depreciated 95,776,801 134,445 95,911,246
Less accumulated depreciation for:
Subsurface lines (14,149,281) (594,559) (14,743,840)
Sewage collection facilities (25,298,589) (1,721,972) (27,020,561)
General plant and administration (1,699,220) (126,741) (1,825,961)
Total accumulated depreciation (41,147,090) (2,443,272) (43,590,362)
Total net capital assets being depreciated 54,629,711 (2,308,827) 52,320,884
Total District's capital assets $55,567,449 $4,522,541 $60,089,990
Capital Asset Contributions – Some capital assets may have been acquired using Federal and State
grant funds, or were contributed by developers or other governments. These contributions are
accounted for as revenues at the time the capital assets are contributed.
REVIEW DRAFT 64 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 5 – CAPITAL ASSETS (Continued)
Depreciation Allocation – Depreciation expense is charged to functions and programs based on
their usage of the related assets. The amounts allocated to each function or program are as
follows:
Governmental Activities
General government $92,586
Public safety 899,801
Public works and parks 6,919,199
Community development 51,080
Culture and recreation 691,805
Internal service funds 1,490,782
Total Governmental Activities $10,145,253
Business-type Activities
Parking services $225,055
Total Business-type Activities $225,055
NOTE 6 – LONG TERM DEBT
The City generally incurs long-term debt to finance projects or purchase assets which will have
useful lives equal to or greater than the related debt. A summary of governmental and business-type
activities transactions for the fiscal year ended June 30, 2023, are as follows:
Authorized Balance Balance Current
and Issued June 30, 2022 Retirements June 30, 2023 Portion
Governmental Activities Bonds:
2018 Authority Lease Revenue Bonds
4.00%-5.00%, due 6/1/2034 $45,485,000 $41,505,000 $2,240,000 $39,265,000 $2,435,000
Add: unamortized bond premium 6,095,322 507,943 5,587,379
2010 Taxable Pension Obligation Bonds
6.00%-6.25%, due 7/1/2025 4,490,000 2,340,000 535,000 1,805,000 565,000
Total Governmental Activities Bonds 49,940,322 3,282,943 46,657,379 3,000,000
Governmental Activities - Direct Borrowings:
PG & E City Hall HVAC Retrofit Note Payable
0.00%, due 11/30/2023 334,585 46,158 33,280 12,878 12,878
PG & E CEC Efficiency Note Payable
1.00%, due 12/22/2026 1,104,799 679,424 148,362 531,062 149,836
PG & E Energy Efficient Lighting Project Note Payable
0.00% due 1/20/30 174,036 164,972 21,754 143,218 21,755
Total Governmental Activities - Direct Borrowings 890,554 203,396 687,158 184,469
Total Governmental Activities Debt $50,830,876 $3,486,339 $47,344,537 $3,184,469
Business-type Activities:
Direct Borrowing:
PG & E Parking Lot Lighting Retrofit Note Payable
0.00%, due 11/30/2023 66,380 $7,305 $6,816 $489 $489
2012 Authority Lease Revenue Refunding Bonds
2.00-4.00%, due 4/1/2033 6,750,000 4,025,000 310,000 3,715,000 320,000
Less: unamortized bond discount (7,797) (725)(7,072)
Total Business-type Activities Bonds 4,017,203 309,275 3,707,928 320,000
Total Business-type Activities $4,024,508 $316,091 $3,708,417 $320,489
REVIEW DRAFT 65 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 6 – LONG-TERM DEBT (Continued)
A. 2018 Authority Lease Revenue Bonds
On March 5, 2018, the Authority issued 2018 Authority Lease Revenue Bonds in the amount of
$45,485,000 bearing interest at rates from 4.00% to 5.00%. The proceeds of the bonds were
provided for replacement of two fire stations and construction of a public safety center. The
Authority has pledged revenue pursuant to a site and facility lease between the City and the
Authority for the public safety center. The lease rental payments are due semi-annually and are in
an amount sufficient to make payments on the Bonds. Principal payments are due annually on
June 1 and interest is payable semiannually on June 1 and December 1. The Bonds maturing on or
prior to June 1, 2028, are not subject to optional redemption prior to their maturity. The Bonds
maturing on or after June 1, 2029, are subject to optional redemption as a whole or in part on any
date after June 1, 2028, at the option of the Authority, at a redemption price equal to the principal
amount of the Bonds subject to redemption, plus accrued interest to the date fixed for redemption,
without premium.
The Bonds are payable from any source of available funds of the City. The bond covenants
contain events of default that require the revenue of the City to be applied by the Trustee as
specified in the terms of the agreement if any of the following conditions occur: default on debt
service payments; the failure of the City to observe or perform the conditions, covenants, or
agreement terms of the debt; bankruptcy filing by the City; or if any court or competent
jurisdiction shall assume custody or control of the City.
B.2010 Taxable Pension Obligation Bonds
On July 1, 2010, the City issued 2010 Taxable Pension Obligation Bonds in the amount of
$4,490,000 bearing interest at rates from 6.00% to 6.25%. Principal payments are due annually on
July 1 and interest is payable semiannually on January 1 and July 1. The Bonds were issued to
prefund a portion of the obligations of the City to the Marin County Employees’ Retirement
Association. Payment of the principal and interest on the Bonds is not limited to any special
source of funds and is payable from any legally available moneys of the City. The City is not
empowered or obligated to levy or pledge taxes to make payments on the Bonds. The bond
covenants contain events of default that require the revenue of the City to be applied by the
Trustee as specified in the terms of the agreement if any of the following conditions occur:
default on debt service payments; the failure of the City to observe or perform the conditions,
covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or
competent jurisdiction shall assume custody or control of the City.
C.Pacific Gas and Electric Notes Payable
PG&E HVAC and Lighting Retrofit
On September 30, 2013, the City executed a note payable agreement with Pacific Gas and
Electric (PG&E) in the amount of $634,861, which does not bear interest. The debt was assumed
as a means to finance energy-efficient retrofit projects which include updating the existing
heating, ventilation, and air conditioning (HVAC) unit in City Hall and converting the street and
parking lot lights to light emitting diode (LED). $334,585 of the loan is for the HVAC projects
and $300,276 of the loan is for the LED projects. Repayment of the loan commenced in
December 2013, and is due monthly until paid in full in 2023.
REVIEW DRAFT 66 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 6 – LONG-TERM DEBT (Continued)
PG&E CEC Efficiency
On September 5, 2017, City Council approved the execution of a note payable agreement with
PG&E in an amount up to $1,178,813, bearing interest at 1%. The debt was assumed as a means
to finance the execution of various energy efficiency system upgrades to City facilities and street
lights. The upgrades included interior and exterior lighting upgrades and energy management
control systems. The City made the final draw on the loan and the final loan obligation was
$1,104,799. Payments commenced in December 2019, and are due semi-annually until paid in
full in December 2026.
PG&E Energy Efficient Lighting Project
On September 20, 2021, the City executed a note payable agreement with PG&E in the amount of
$174,036, which does not bear interest. The debt was assumed as a means of financing energy
efficient lighting for the Al Boro recreation center and the department of Public Works building.
Repayment of the loan commenced in February 2022 and payments are due monthly until paid in
full in January 2030.
D. 2012 Authority Lease Revenue Refunding Bonds
On August 7, 2012, the Authority issued 2012 Authority Lease Revenue Refunding Bonds in the
amount of $6,750,000 bearing interest at rates from 2.00% to 4.00%. The proceeds of the Series
2012 Bonds were used to repay the Authority’s 2003 Authority Lease Revenue Bonds that
financed the construction of the 3rd and C Street parking structure and achieved lower interest
rates and lower annual debt service payments. The refunding resulted in a net present value
savings to the City in debt service of $670,496. In addition, the requisition price exceeded the net
carrying amount of the old debt by $295,278. The Series 2012 Bonds are payable from lease
payments made by the City to the Authority for leasing the City facilities. The rights to these
lease payments have been irrevocably transferred by the Authority to the Trustee. Activities
related to the Series 2012 Bonds are reported in the Parking Services Enterprise Fund. Principal
payments are due annually on April 1 and interest is payable semiannually on October 1 and
April 1. The Bonds maturing on or prior to April 1, 2022, are not subject to optional redemption
prior to their maturity. The Bonds maturing on or after April 1, 2023, are subject to optional
redemption as a whole or in part on any date after April 1, 2022, at the option of the Authority, at
a redemption price equal to the principal amount of the Bonds subject to redemption, plus accrued
interest to the date fixed for redemption, without premium.
The Bonds are payable from any source of available funds of the City. The bond covenants contain
events of default that require the revenue of the City to be applied by the Trustee as specified in the
terms of the agreement if any of the following conditions occur: default on debt service payments;
the failure of the City to observe or perform the conditions, covenants, or agreement terms of the
debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or
control of the City.
REVIEW DRAFT 67 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 6 – LONG-TERM DEBT (Continued)
E. Future Debt Service
Future debt service requirements, including interest, at June 30, 2023, are as follows:
Governmental Activities
For the Year Bonds Direct Borrowings
Ended June 30 Principal Interest Principal Interest
2024 $3,000,000 $2,058,406 $184,469 $4,951
2025 3,245,000 1,900,250 173,106 3,436
2026 3,510,000 1,729,256 174,623 1,919
2027 3,105,000 1,565,750 98,762 386
2028 3,355,000 1,410,500 21,755
2029 - 2033 21,025,000 4,262,500 34,443
2034 - 2035 3,830,000 191,500
Totals 41,070,000 $13,118,162 687,158 $10,692
Reconciliation of Long-term debt:
Add: unamortized premium 5,587,379
$46,657,379 $687,158
Business-type Activities
For the Year Bonds Direct Borrowing
Ended June 30 Principal Interest Principal
2024 $320,000 $134,288 $489
2025 330,000 124,288
2026 335,000 113,562
2027 350,000 102,256
2028 360,000 90,006
2029 - 2033 2,020,000 241,806
Totals 3,715,000 $806,206 489
Reconciliation of Long-term debt:
Less: unamortized discount (7,072)
$3,707,928 $489
REVIEW DRAFT 68 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 7 – DEBT WITHOUT CITY COMMITMENT
A.Special Assessment Debt Without City Commitment
Special assessment districts have been established in various parts of the City to provide
improvements to properties located in those districts. Properties in these districts are assessed for
the cost of improvements; these assessments are payable solely by property owners over the term
of the debt issued to finance these improvements. The City is not legally or morally obligated to
pay these debts or be the purchaser of last resort of any foreclosed properties in these special
assessment districts, nor is it obligated to advance City funds to repay these debts in the event of
default by any of these districts. The City does act as an agent for the property owners and
bondholders and at June 30, 2023, the balances of these Districts’ outstanding debt were as
follows:
Project Original Outstanding
Description Amount June 30, 2023
Pt. San Pedro Road Median Landscaping Pt. San Pedro Road
Assessment District Limited Obligation Bonds-2012 Median Landscaping $1,750,000 $1,075,200
B.Conduit Debt
The City has assisted private-sector entities by sponsoring their issuance of debt for purposes the
City deems to be in the public interest. These debt issues are secured solely by the property
financed by the debt. The City is not legally or morally obligated to pay these debts or be the
purchaser of last resort of any foreclosed properties secured by these debts, nor is it obligated to
advance City funds to repay these debts in the event of default by any of these issuers. At June
30, 2023, the balance of this issuers’ outstanding debt was as follows:
Project Original Outstanding
Description Amount June 30, 2023
San Rafael Redevelopment Agency 162-175 Belvedere
Multifamily Housing Revenue Bonds-2000A Apartments $3,590,529 $789,269
California Statewide Communities
Development Authority Revenue Bonds-2001 St. Marks School 5,605,000 2,005,000
San Rafael Redevelopment Agency San Rafael Commons
Multifamily Housing Revenue Bonds-2002 Apartments 6,100,000 4,025,000
San Rafael Redevelopment Agency
Multifamily Housing Revenue Bonds-2007 Series A Martinelli House Project 6,000,000 1,613,168
Multifamily Housing Revenue Bonds-2007 Series B Martinelli House 1,000,000 103,077
Total $22,295,529 $8,535,514
REVIEW DRAFT 69 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 8 – NET POSITION AND FUND BALANCE
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows of resources over all its
liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three
captions. These captions apply only to Net Position, which is determined only at the Government-
wide level and business type activity and are described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the
current net book value of the City’s capital assets, less the outstanding balance of any debt issued
to finance these assets.
Restricted describes the portion of Net Position which is restricted to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other
restrictions which the City cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted to use.
B.Fund Balance
In the fund financial statements, fund balances represent the net current assets of each fund. Net
current assets generally represent a fund’s cash and receivables, less its liabilities. The City’s
fund balances are classified in accordance with generally accepted accounting principles, which
require the City to classify its fund balances based on spending constraints imposed on the use of
resources. For programs with multiple funding sources, the City prioritizes and expends funds in
the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the
following hierarchy is ranked according to the degree of spending constraint:
Nonspendable represents balances set aside that do not represent available, spendable resources
even though they are a component of assets. Fund balances required to be maintained intact, such
as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, loans
receivable, and land held for redevelopment are included. However, if proceeds realized from the
sale or collection of nonspendable assets are restricted, committed or assigned, then
Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors,
laws, regulations, or enabling legislation which requires the resources to be used only for a
specific purpose. Nonspendable amounts subject to restrictions are included along with spendable
resources.
Committed fund balances have constraints imposed by resolution of the City Council which may
be altered only by resolution of the City Council. Nonspendable amounts subject to Council
commitments are included along with spendable resources.
Assigned fund balances are amounts constrained by the City’s intent that they be used for a
specific purpose, but are neither restricted nor committed. Intent is expressed by the City
Manager, as designated by the City Council, and may be changed at the discretion of the City
Council or City Manager. This authorization is given through Resolution No. 13173 which
adopted the City’s Fund Balance Policy.
REVIEW DRAFT 70 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
This category includes nonspendables, when it is the City’s intent to use proceeds or collections
for a specific purpose; and residual fund balances, if any, of Special Revenue, Capital Projects
and Debt Service Funds which have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or
assigned. This includes the residual General Fund balance and residual fund deficits, if any, of
other governmental funds.
Detailed classifications of the City’s fund balances, as of June 30, 2023, are below:
Capital Project Funds
General Fund
Traffic and
Housing
Mitigation Gas Tax
Essential Facilities
Capital Projects Fund
Other
Governmental
Funds Total
Fund balances:
Nonspendable:
Prepaids $78,057 $182,890 $260,947
Total Nonspendable 78,057 182,890 260,947
Restricted for:
Assessment District capital projects 298,723 298,723
Baypoint Lagoons Assessment District 224,737 224,737
Bedroom tax capital projects 142,339 142,339
Childcare 610,965 610,965
Development services 400,028 400,028
Emergency medical services 2,281,841 2,281,841
Streets improvements and maintenance (gas tax) $11,835,712 11,835,712
Grant funded programs 1,050,383 1,050,383
Household hazmat facility 572,457 572,457
Library 4,444,464 4,444,464
Library assessment 934,285 934,285
Loch Lomond Assessment District 809,862 809,862
Loch Lomond Assessment District #2 896,955 896,955
Low and Moderate Income Housing 1,872,044 1,872,044
Measure A - Open Space 475,053 475,053
Measure C - Wildfire Prevention 1,386,411 1,386,411
Measure E - Public Safety Facility $3,718,015 3,718,015
Measure G - Cannabis 1,150,736 1,150,736
Parkland dedication 359,989 359,989
Public safety 124,363 124,363
Pt. San Pedro - Maintenance Portion 174,968 174,968
Recreation revolving 362,483 362,483
Stormwater 6,629,459 6,629,459
Traffic and housing mitigation $5,693,062 5,693,062
Total Restricted 5,693,062 11,835,712 3,718,015 25,202,545 46,449,334
Committed to:
Capital improvement capital projects 3,986,983 3,986,983
Emergency and cash flow 9,753,000 9,753,000
Park capital projects 21,861 21,861
Total Committed 9,753,000 4,008,844 13,761,844
Assigned to:
Contractual commitments 2,410,106 2,410,106
One-time funds allocated to projects 8,767,279 8,767,279
Capital Project grant matching 4,240,000 4,240,000
Infrastructure Reserve 600,000 600,000
General plan / long range planning 1,254,889 1,254,889
Open space capital projects 119,248 119,248
Total Assigned 17,272,274 119,248 17,391,522
Unassigned 664,667 664,667
Total Fund Balances $27,767,998 $5,693,062 $11,835,712 $3,718,015 $29,513,527 $78,528,314
Special Revenue Funds
71
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
C. Minimum Fund Balance Policy
The City Council adopted a General Fund Reserve Policy in November 2014 to establish target
reserve levels and the methodology for calculating reserve levels. The Policy also establishes
criteria for the use of reserves and a process to replenish reserves.
The Policy requires the City to strive to maintain the following fund balances:
1)Emergency and Cash Flow Reserve (10% minimum)
An emergency and cash flow reserve will be maintained for the purposes of (1) sustaining
General Fund operations in the case of a public emergency, such as a natural disaster or other
unforeseen catastrophic event; and (2) to cover sudden operating shortfalls caused by (a) a
severe drop in revenues that cannot be sufficiently offset by a corresponding reduction in
expenditures and/or other available resources, or (b) an unforeseen, unavoidable expenditure
that must be paid from the General Fund.
This reserve level is measured as a percentage of annual operating expenditures. Budgeted
operating expenditures are to be used for the purposes of budget allocations and projections,
and actual operating expenditures are to be used for the purpose of measuring this reserve at
fiscal year-end. This reserve may be expended only when the City Council determines by
resolution that such action is consistent with the purpose and intent of this policy.
In the event the balance in the Emergency and Cashflow Reserve falls below the minimum
level, the City Manager, shall recommend a plan to replenish the fund within a timeframe not
to exceed three years. This recommendation shall be approved by the City Council no later
than the time at which the next annual budget is adopted. Any variance from the stipulations
established within this policy shall require approval by the City Council along with a
statement of findings supporting the temporary or ongoing modification to this policy.
The required reserve was $9,753,000 at June 30, 2023, and the balance of the reserve,
included in the General Fund’s committed fund balance was $9,753,000 at that date.
2)Other Facilities and Infrastructure
The purpose of the assigned infrastructure reserve is to accumulate funds to be used for the
purpose of non-public safety facility construction and major improvements (e.g., library,
administrative and non-safety buildings, streets, and the stormwater system). This was
$600,000 at June 30, 2023.
The General Plan/Long Range Planning reserve included in the General Fund’s assigned fund
balance was $1,254,889 at June 30, 2023, which is specifically assigned to the City’s General
Plan, a state required plan that must address eight topic areas – Neighborhoods, Community
Design, Economic Vitality, Infrastructure, Governance, Culture and Arts, Parks and
Recreation and Air and Water Quality.
REVIEW DRAFT 72 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN
A. Plan Description
The City’s defined benefit retirement plan is administered by the Marin County Employees’
Retirement Association (MCERA), a retirement system established in July 1950 and governed by
the California Constitution; the County Employees Retirement Law of 1937 (CERL or 1937 Act,
California government Code Section 31450 et seq.); the Public Employees’ Pension Reform Act
of 2013 (PEPRA, Government Code Section 7522); the provisions of California Government
Code Section 7500 et seq; and the bylaws, procedures, and policies adopted by MCERA’s Board
of Retirement. The Marin County Board of Supervisors may also adopt resolutions, as permitted
by the CERL and PEPRA, which may affect the benefits of MCERA members.
MCERA operates as a cost-sharing multiple employer defined benefit plan for the City and eight
other participating employers: County of Marin, Local Agency Formation Commission
(LAFCO), Marin City Community Services District, Marin County Superior Court,
Marin/Sonoma Mosquito and Vector Control District, Novato Fire Protection District, Southern
Marin Fire Protection District and Tamalpais Community Services District. Separate actuarial
valuations are performed for these other agencies and districts, and the responsibility for funding
their plans rest with those entities. Post-retirement benefits are administered by MCERA to
qualified retirees.
Copies of MCERA’s annual financial reports, which include required supplementary information
(RSI) for the plan may be obtained from their office at One McInnis Parkway, Suite 100, San
Rafael, CA 94903 or online at www.mcera.org.
B.Benefit Provisions
Service Retirement: MCERA’s service retirement benefits are based on the years of credited
service, final average compensation, and age at retirement, according to the applicable statutory
formula. Members who qualify for service retirement are entitled to receive monthly retirement
benefits for life.
General members hired prior to January 1, 2013, are eligible to retire once they attain the age of
50 (except Misc. Tier 2, whereby the minimum age is 55) and have acquired 10 or more years of
retirement service credit. A member with 30 years of service is eligible to retire regardless of age.
General members who are first hired on or after January 1, 2013, are eligible to retire once they
have attained the age of 52, and have acquired 5 years of retirement service credit, or age 70,
regardless of service.
Safety members hired prior to January 1, 2013, are eligible to retire once they attain the age of 50
and have acquired 10 or more years of retirement service credit. A member with 20 years of
service is eligible to retire regardless of age. Safety members who are first hired on or after
January 1, 2013, are eligible to retire once they have attained the age of 50, and have acquired 5
years of retirement service credit, or age 70, regardless of service.
REVIEW DRAFT 73 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
Disability Retirement: A member with five years of service, regardless of age, who becomes
permanently incapacitated for the performance of duty is eligible to apply for a non-service
connected disability retirement. Any member who becomes permanently incapacitated for the
performance of duty as a result of injury or disease arising out of and in the course of
employment is eligible to apply for a service-connected disability retirement, regardless of
service length or age.
Death Benefits: MCERA provides specified death benefits to beneficiaries and members’
survivors. The death benefits provided depend on whether the member is active or retired. The
basic active member death benefit consists of a members’ retirement contributions plus interest
plus one month’s pay for each full year of service (up to a maximum of six month’s pay).
Retiring members may choose from five retirement benefit payment options. Most retirees elect
to receive the unmodified allowance which provides the maximum benefit to the retiree and
continuance of 60% of the retiree’s allowance to the surviving spouse or registered domestic
partner after the retiree’s death. Other death benefits may be available based on the years of
service, marital status, and whether the member has minor children.
Cost of Living Adjustment: Retirement allowances are indexed for inflation. Most retirees receive
automatic basic cost of living adjustments (COLA’s) based upon the Urban Consumer Price
Index (UCPI) for the San Francisco Bay Area. These adjustments go into effect on April 1 of
each year. Annual COLA increases are statutorily capped at 2%, 3%, or 4% depending upon the
member’s retirement tier. When the UCPI exceeds the maximum statutory COLA for the
member’s tier, the difference is accumulated for use in future years when the UCPI is less than
the maximum statutory COLA. The accumulated percentage carryover is known as the COLA
Bank.
C. Funding Policy
The funding policy of MCERA provides for actuarially determined periodic contributions by the
City at rates such that sufficient assets will be available to pay plan benefits when due. The
employer rates for normal cost are determined using the Entry Age Normal Actuarial Cost
Method, which takes into account those benefits that are expected to be earned in the future as
well as those already accrued.
The City contribution rates for the year ended June 30, 2023 were as follows:
Employer Employee
Contribution Rate Contribution Rate Benefit Basis
City of San Rafael Misc Tier 1 52.37% 0.00% - 17.14% 2.7% @ 55 Highest year
City of San Rafael Misc Tier 2 53.15% 8.11% - 12.31% 2.0% @ 55 Average three highest years
City of San Rafael Fire Tier 1 71.55% 0% - 20.38% 3.0% @ 55 Highest year
City of San Rafael Fire Tier 2 70.51% 12.59% - 18.53% 3.0% @ 55 Average three highest years
City of San Rafael Safety Police Tier 1 71.14% 0% - 20.38% 3.0% @ 55 Highest year
City of San Rafael Safety Police Tier 2 72.39% 12.59% - 18.53% 3.0% @ 55 Average three highest years
PEPRA Misc 46.09%9.74% 2.0% @ 62 Average three highest years
PEPRA Safety 62.31%15.26% 2.7% @ 57 Average three highest years
REVIEW DRAFT 74 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
These rates were determined by MCERA, based on the actuarial valuation dated June 30, 2021.
The actual rate of return on investments during that year was 32.0% on a market value basis net
of investment expenses, as compared to the prior year’s 6.75% assumption.
The City uses the actuarially determined percentages of payroll to calculate and pay contributions
to MCERA. Contributions to the plan from the City were $21,446,774 for the year ended June 30,
2023, based on a total payroll of $48,676,936, of which $35,543,480 represented the basis for the
plan contributions. Of the total payroll subject to plan contributions, $1,337,210 is attributable to
the San Rafael Sanitation District (SRSD), a component unit of the City.
Effective with the June 30, 2013, valuation, the Unfunded Actuarial Liability (UAL) as of June
30, 2013, is being amortized over a closed 17-year period (9 years remaining as of June 30,
2021), except for the additional UAL attributable to the outstanding unfunded actuarial loss from
2009, which is being amortized over a separate closed period (currently 17 years).
Effective with the June 30, 2014 valuation, any new sources of UAL due to actuarial gains and
losses or method changes are amortized over a closed 24-year period, with a 5-year ramp up
period at the beginning of the period, a 4-year ramp down at the end of the period, and 15 years of
level payments as a percentage of payroll between the ramping periods. This amortization method
for gains and losses is similar to a 20-year amortization period with level payments as a
percentage of payroll, in conjunction with a traditional 5-year asset smoothing.
Assumption changes are amortized over a closed 22-year period, with a 3-year ramp up period, 2-
year ramp down period, and 17 years of level payments as a percentage of payroll.
D. Pension Liability and Pension Expense
The City’s net pension liability (NPL) has been determined for the financial reporting period
ended June 30, 2023, based on the following methodology: The City’s NPL as of June 30, 2021,
was updated to the measurement date of June 30, 2022 using the actual City’s plan assets as of
June 30, 2022, and estimating the change in the City’s liabilities between July 1, 2021, and June
30, 2022. This estimate is based on a projection of the City’s long-term contributions to the
pension plan relative to the projected contributions of all participating employers.
The resulting NPL for the City under this calculation is $105,476,657 or 33.73% of the total
MCERA NPL of $312,688,342 (reference MCERA’s GASB 67/68 report as of June 30, 2022).
This compares to the previous year’s net pension liability of $48,176,309 or 29.665% of the total
MCERA net pension liability of $162,401,177 (reference MCERA’s GASB 67/68 report as of
June 30, 2021).
In addition to the reporting of the NPL as of June 30, 2023, the City reported deferred inflows of
$24,063,376 and deferred outflows of $68,401,146 as of the measurement date June 30, 2022.
The City reported post-measurement date outflows of $21,446,774 from actual fiscal year 2022-
2023 pension contributions. Deferred outflows include deferred investment gains and adjustments
to assumptions based on actual positive results. Deferred outflows have a positive impact on net
assets (offsetting the net pension liability) and will be recognized in future reporting periods.
Deferred inflows include deferred investment losses, adjustments to assumptions based on actual
negative results, and contributions made after the measurement date.
REVIEW DRAFT 75 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
Deferred inflows have a negative impact on net assets (similar to the NPL) and will be recognized
in future reporting periods. The net impact of these pension liability related entries on the City’s
Statement of Net Position before allocations to the San Rafael Sanitation District was
$61,138,857. After allocations to the San Rafael Sanitation District, the net impact on the City’s
Statement of Net Position was $59,734,885.
Under generally accepted accounting principles, the City’s pension expense is based on the Plan’s
pension expense, adjusted for the City’s actual contributions and net pension liability (asset).
Three components are used to calculate pension expense: (1) changes in the net pension liability;
(2) changes in benefit terms (if any): and (3) changes in actuarial assumptions and experience.
Pension expense is calculated using a different methodology than that used to derive the
actuarially determined annual contribution to the Plan. Actual pension contributions during the
reporting year were $21. Because pension expense is affected by annual changes in the net
pension liability, volatility is to be expected. For the current measurement period, investment
returns above the assumed rate were responsible for the decrease in net pension liability to a net
pension asset and had a corresponding impact on pension expense.
The table below provides a summary of the key results during the reporting period:
Measurement Date Measurement Date
Description 6/30/2022 6/30/2021
Net Pension Liability (Asset)$105,476,657 ($48,176,309)
Deferred Inflows 24,063,376 164,252,572
Deferred Outflows (46,954,402) (15,753,361)
Impact on Net Position before Deferred Outflows from Contributions 82,585,631 100,322,902
Additional Deferred Outflows - Contributions Subsequent to Measurement Date (21,446,744) (21,859,307)
Impact on Statement of Net Position before Allocations 61,138,887 78,463,595
Allocation of Net Pension Liability (Asset) to SRSD 3,563,252 (1,635,722)
Allocation of Deferred Inflows (measurement date) to SRSD 812,918 5,576,838
Allocation of Deferred Outflows (measurement date) to SRSD (2,310,754) (534,871)
Impact on Net Position before Allocation of Deferred Outflows
from Contributions to SRSD 2,065,416 3,406,245
Allocation of Additional Deferred Outflows (Contributions) to SRSD (661,444) (747,284)
Long-Term Receivable from SRSD, due to pension obligations (see Note 4F)1,403,972 2,658,961
Impact on Statement of Net Position, net of receivable from SRSD $59,734,915 $75,804,634
Pension Expense (Revenue) $4,048,455 ($20,127,615)
Summary of Results
REVIEW DRAFT 76 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
Projection of Total Pension Liability and Net Pension Liability
Total Pension Liability (TPL) is the actuarial present value of projected benefit payments
attributed to past periods of employee service. MCERA and the City have adopted a measurement
date of June 30, 2022. The beginning of year measurement of TPL is based on the actuarial
valuation as of June 30, 2021. The TPL at the end of the measurement year, June 30, 2022, is also
measured as of the valuation date of June 30, 2021 and projected to June 30, 2022.
The Plan Fiduciary Net Position (FNP) is the fair or market value of assets. The FNP at the
beginning of the year is based on the actuarial valuation as of June 30, 2021. The FNP at the end
of the measurement year, June 30, 2022, is also measured as of the valuation date of
June 30, 2021, and projected to June 30, 2022.
The Net Pension Liability (NPL) is the City’s liability (asset) for benefits provided through its
defined benefit plan administered by MCERA. It is calculated by reducing the TPL by the FNP.
The long-term portion of the governmental activities’ NPL is liquidated primarily by the General
Fund.
Actuarial assumptions:
The total pension liability as of June 30, 2022 (measurement date) was determined by an actuarial
valuation as of June 30, 2021, using the following actuarial assumptions applied to all prior periods
included in the measurement.
Expected Return on Assets 6.75% per year, net of investment expenses
Discount Rate 6.75% per year
Price Inflation 2.50% per year
Salary Increases 3.00% per year plus merit component based on employee classification
and years of service.
Administrative Expenses Administrative expenses in the actuarial valuation are assumed to be
$5,137,500 for FY 2021-22, to be split between employees and
employers based on their share of the overall contributions.
Administrative expenses shown in this report are based on the actual
FY 2020-21 amounts.
Post-Retirement COLA Post-retirement COLAs are assumed at a rate of 2.5% for members
with a 4% COLA cap, 2.4% for members with a 3% COLA cap, and
1.9% for members with a 2% COLA cap.
REVIEW DRAFT 77 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
Asset Allocation Policy and Expected Long-Term Rate of Return by Asset Class
The Board of Retirement has adopted an Investment Policy Statement (IPS), which provides the
framework for the management of MCERA’s investments. The IPS establishes MCERA’s
investment objectives and defines the principal duties of the Retirement Board, the custodian bank,
and the investment managers. The asset allocation plan is an integral part of the IPS and is designed
to provide an optimum and diversified mix of asset classes with return expectations to satisfy
expected liabilities while minimizing risk exposure. MCERA currently employs external investment
managers to manage its assets subject to the provisions of the policy. Plan assets are managed on a
total return basis with a long term objective of achieving and maintaining a fully funded status for
the benefits provided through the Plan.
The following was the Retirement Board’s adopted asset allocation policy as of June 30, 2022:
Long-Term
Expected Rate
Target Long-Term Expected of Return
Asset Class Allocation Real Rate of Return (with the effect of inflation)
Domestic Equities 32%4.60%7.10%
International Equities 22%4.85%7.35%
Fixed Income 23%1.40%3.90%
Public Real Assets 7%3.20%5.70%
Real Estate 8%3.65%6.15%
Private Equity 8%6.00%8.50%
Total 100%
Mortality Rates for Mortality rates for Miscellaneous active members are based on the
Healthy Members sex distinct Public General 2010 Employee Mortality Table, with
and Inactives generational mortality improvements projected from 2010 using
Projection Scale MP-2020, with no adjustments.
Mortality rates for Safety active members are based on the sex
distinct Public Safety 2010 Above-Median Income Employee
Mortality Table, with generational mortality improvements
Projected from 2010 using Projection Scale MP-2020, with no
adjustments. 10% of Safety member active deaths are assumed to
occur in the line of duty.
Mortality Rates for Rates of mortality for Miscellaneous disabled members are based
Retired Disabled on the sex distinct Public General 2010 Disabled Retiree Mortality
Members Table, with generational mortality improvements projected from
2010 using Projection Scale MP-2020, with no adjustments,
Rates of mortality for Safety disabled members are based on the
sex distinct Public Safety 2010 Disabled Retiree Mortality Table,
with generational mortality improvements projected from 2010
using Projection Scale MP-2020, adjusted by 95% for males with
no adjustment for females.
REVIEW DRAFT 78 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
The Long-Term returns are calculated using a 10-year geometric return derived from arithmetic
returns and the associated risk (standard deviation).
Determination of Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. Related to the discount
rate is the funding assumption that employees will continue to contribute to the plan at the required
rates and employers will continue the historical and legally required practice of contributing to the
plan based on an actuarially determined contribution, reflecting a payment equal to annual normal
cost, a portion of the expected administrative expenses, an amortization payment for the
extraordinary losses from 2009 amortized over a closed period (17 years remaining as of the June
30, 2021 actuarial valuation), and an amount necessary to amortize the remaining Unfunded
Actuarial Liability as a level percentage of payroll over a closed period (9 years remaining as of the
June 30, 2021 actuarial valuation).
A change in the discount rate would affect the measurement of the TPL. A lower discount rate
results in a higher TPL and higher discount rates results in a lower TPL. Because the discount rate
does not affect the measurement of assets, the percentage change in the NPL can be significant for a
relatively small change in the discount rate.
The table below shows the sensitivity of the Net Pension Liability (Asset) to a one percent decrease
and a one percent increase in the discount rate:
1%Discount 1%
Decrease Rate Increase
Description 5.75%6.75%7.75%
Total Pension Liability $1,265,780,847 $1,120,775,111 $1,001,365,195
Fiduciary Net Position 1,015,298,454 1,015,298,454 1,015,298,458
Net Pension Liability (Asset)$250,482,393 $105,476,657 ($13,933,263)
80.2%90.6%101.4%
Fiduciary Net Position as a
Percentage of the Total Pension
Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Pension
Resources
The impact of experience gains or losses and assumption changes on the Total Pension Liability
(TPL) are recognized in the proportionate share of the pension expense over the average expected
remaining service life of all active and inactive members of the plan. As of the measurement date,
this recognition period was 4 years.
REVIEW DRAFT 79 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLAN (Continued)
The following tables show the current balance and sources of deferred outflows and inflows related
to the City’s defined benefit retirement plan, and the scheduled recognition of these deferred
amounts:
Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Differences between expected and actual experience $2,762,782 $4,367,486
Changes in assumptions 5,679,576
Change in proportion 7,957,716 10,883,765
Difference between City contributions and proportionate
share of contributions 8,812,125
Actual FY 22-23 contributions (post measurement date)21,446,774
Net difference between projected and actual earnings
on pension plan investments 30,554,298
Deferred Inflows and Outflows Before Allocations $68,401,146 $24,063,376
Allocation of Deferred Inflows and Outflows to SRSD
As of measurement date $2,310,754 $812,918
Post-measurement date 661,444
Net Deferred Inflows and Outflows $65,428,948 $23,250,458
The $21,446,774 reported as deferred outflows of resources related to contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year ended
June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized as pension expense as follows:
Amortization
Year ended June 30 Amount
2024 ($3,267,510)
2025 (3,324,244)
2026 (7,611,284)
2027 37,094,034
Total $22,890,996
REVIEW DRAFT 80 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 10 – PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLAN)
The City contributes to the Public Agency Retirement System (PARS), which administers a defined
contribution retirement plan. A defined contribution retirement plan provides retirement benefits in
return for services rendered, provides an individual account for each participant, and specifies how
contributions to the individual’s accounts are determined instead of specifying the amount of
benefits the individual is to receive. The benefits a participant will receive depend on the amount
contributed to the participant’s account, and the returns earned on investments on those
contributions. The Plan’s trust administrator is Phase II, P.O. Box 12919, Newport Beach,
California 92658.
As established by the plan, all eligible part-time and temporary employees of the City become
participants in the plan from the date that they are hired. An eligible employee is any employee
who, at any time during which the employer maintains this plan, is not accruing a benefit under the
Marin County Employees’ Retirement Fund.
As determined by the plan, each employee must contribute 3.75% of gross earnings to the plan. The
City contributes an additional 3.75% of the employee’s gross earnings. Contributions made by an
employee and the employer vest immediately.
During the year, the City and employees each contributed $140,479 The total covered payroll of
employees participating in the plan for the year ended June 30, 2023, was $3,746,098.
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS
Plan Description
The City provides certain health care benefits for retired employees and their spouses under an
Agent Multiple-Employer Defined Benefit Plan. The benefit provisions were established under the
authority of the 1937 Act, Section 31450, et. seq. of the Government Code. Employees who meet
the vesting criteria become eligible for these benefits if they receive a retirement benefit from the
Marin County Employees’ Retirement Association within 120 days of retirement from City
employment.
The provisions and benefits of the City’s Other Post Employment Benefit Plan, in effect at June 30,
2023, are summarized as follows:
Elected Officials, Mid-Management, & Unrepresented
Management All other Bargaining Units
Eligibility
- Age 50 (age 55 if hired > 7/1/11) with 10 years services (Including reciprocity) OR
-
-Age 70
- Disability Retirement
Benefit Hired < 1/1/09 Full premium/cap Hired < 1/1/10 Up to cap
Hired ≥ 1/1/09 PEMHCA Min Hired ≥ 1/1/10 PEMHCA Min
Surviving Spouse
Benefit Continuation to surviving spouse
Medicare Part B Hired < 4/1/07 Full reimbursement None
Hired ≥ 4/1/07 None
Other No Dental, Vision, or Life Benefits
Retire directly from the City:
30 years service (Miscellaneous), 20 years service (Safety) OR
REVIEW DRAFT 81 10/30/2023
I
I
I
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Membership in the plan consisted of the following at June 30, 2022, the measurement date:
Active plan members 348
Inactive employees or beneficiaries currently
receiving benefit payments 378
Inactive employees entitled to but not yet
receiving benefit payments 80
Total 806
Funding Policy and Actuarial Assumptions
The City’s net OPEB liability was measured using a Total OPEB Liability and Fiduciary Net
Position measured as of June 30, 2022, using an actuarial valuation as of June 30, 2021. The
following actuarial assumptions were used in the valuation: (a) 6.25% investment rate of return and
(b) 2.50% of general inflation increase, and (c) a healthcare trend of declining annual increases
ranging from 6.50% in 2023 to 3.75% for the years starting 2076. In addition, the fixed dollar
benefit amounts are assumed to be held flat in the future and the premium related benefits are
assumed to increase with the healthcare trend rate.
The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an
actuarial experience study for the period July 1, 2020 through June 30, 2021.
The long-term expected rate of return on OPEB plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rates of return (expected returns,
net of OPEB plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term expected rate of return by weighing the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class
are summarized in the following table:
Long-Term
Expected
Long-Term Rate of Return
Target Expected (with the effect
Asset Class Allocation Real Rate of Return of inflation)
Global Equity 59%4.56%7.06%
Fixed Income 25%0.78%3.28%
TIPS 5%-0.08%2.42%
Commodities 3%1.22%3.72%
REITs 8%4.06%6.56%
Total 100%
Assumed Long-Term Rate of Inflation 2.50%
Assumed Long-Term Investment Expenses n/a
Expected Long-Term Net Rate of Return 6.25%
Discount Rate 6.25%
REVIEW DRAFT 82 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The Expected Long-Term Rate of Return is provided by CalPERS’ Strategic Asset Allocation
Overview in October 2018 – Strategy 1.
Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows
used to determine the discount rate assumed that City contributions will be made at rates equal to
the actuarially determined contribution rates. Based on these assumptions, the OPEB plan's
fiduciary net position was projected to be sufficient to make projected benefit payments and the
plan assets are expected to be invested using the strategy to achieve the expected return.
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2022 (6/30/21 measurement date)$48,228,000 $29,296,000 $18,932,000
Changes Recognized for the Measurement Period:
Service Cost 566,000 566,000
Interest on the total OPEB liability 2,946,000 2,946,000
Contributions from the employer 3,294,000 (3,294,000)
Net investment income (3,922,000) 3,922,000
Administrative expenses (15,000)15,000
Benefit payments and refunds (3,286,000) (3,286,000)
Net Changes during July 1, 2022 to June 30, 2023 226,000 (3,929,000) 4,155,000
Balance at June 30, 2023 (6/30/22 measurement date)$48,454,000 $25,367,000 $23,087,000
Increase (Decrease)
The benefit payments and refunds include implied subsidy benefit payments in the amount of
$725,000.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City, as well as what the City's net OPEB
liability would be if it were calculated using a discount rate that is 1-percentage-point lower
(5.25 percent) or 1-percentage-point higher (7.25 percent) than the current discount rate:
Discount Rate -1% Current Discount Discount Rate +1%
(5.75%) Rate (6.75%) (7.75%)
$28,379,000 $23,087,000 $18,613,000
Plan's Net OPEB Liability/(Asset)
REVIEW DRAFT 83 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability of the City, as well as what the City’s net OPEB
liability would be if it were calculated using healthcare trend rates that are 1-percentage-point
lower or 1-percentage-point higher than the current rates.
Healthcare Cost
Trend Rate -1% Trend Rates Trend Rate +1%
$19,681,000 $23,087,000 $27,134,000
Plan's Net OPEB Liability/(Asset)
Detailed information about the OPEB plan’s fiduciary net position is available in the separately
issued plan financial report. That report may be obtained from the California Public Employees’
Retirement System, CERBT, P.O. Box 942703, Sacramento, CA, 94229.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
related to OPEB
Components of OPEB Expense for fiscal year 2022-2023 were as follows:
Service Cost $566,000
Interest on Total OPEB Liability 2,946,000
Projected earning on investments (1,831,000)
Administrative expense 15,000
Recognition of deferred outflows/inflows:
Experience (1,792,000)
Assumptions 668,000
Asset Returns 317,000
OPEB Expense $889,000
REVIEW DRAFT 84 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Components of deferred outflows of resources and deferred inflows of resources related to OPEB at
June 30, 2023 were as follows:
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Changes of assumptions $1,770,961 $29,039 $1,800,000
Net difference between projected and
actual earnings on plan investments 2,009,231 29,769 2,039,000
Employer contributions made subsequent
to the measurement date 3,136,528 46,472 3,183,000
Total deferred outflows of resources $6,916,720 $105,280 $7,022,000
Deferred inflows of resources:
Differences between expected and actual
experience $3,552,367 $52,633 $3,605,000
Changes of assumptions 832,884 14,116 847,000
Total deferred inflows of resources $4,385,251 $66,749 $4,452,000
The difference between projected OPEB plan investment earnings and actual earnings is amortized
over a five-year period. The remaining gains and losses are amortized over the expected average
remaining service life.
$3,183,000 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30,
2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized as future OPEB expense as follows:
Measurement Period Amortized
Ended June 30 Amount
2024 ($864,000)
2025 (687,000)
2026 (31,000)
2027 969,000
($613,000)
REVIEW DRAFT 85 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The table below provides a summary of the key results during this reporting period.
Measurement Date Measurement Date
Description June 30, 2022 June 30, 2021
Net OPEB Liability $23,087,000 $18,932,000
Deferred Inflows 4,452,000 10,113,000
Deferred Outflows (3,839,000) (2,940,000)
Impact on Net Position before deferred contributions 23,700,000 26,105,000
Additional Deferred Outflows - Contributions subsequent to measurement date (3,183,000) (3,294,000)
Impact on Statement of Net Position before Allocations 20,517,000 22,811,000
Allocation of NOL to SRSD 674,000 552,000
Allocation of Deferred Inflows (measurement date) to SRSD 129,971 294,865
Allocation of Deferred Outflows (measurement date) to SRSD (112,075) (85,722)
Impact on Net Position before deferred contributions to SRSD 691,896 761,143
Allocation of Additional Deferred Outflows (contributions) to SRSD (92,924) (96,043)
Long-Term Receivable from SRSD, due to OPEB obligations (see Note 4G)598,972 665,100
Impact on Statement of Net Positions, net of receivable from SRSD $19,918,028 $22,145,900
OPEB Expense $889,000 $345,000
Covered Employee Payroll $42,604,000 $39,310,000
Summary of Results
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS
The City participates in the jointly governed organizations discussed below through formally
organized and separate entities established under the Joint Exercise of Powers Act of the State of
California. As separate legal entities, these entities exercise full powers and authorities within the
scope of the related Joint Powers Agreements including the preparation of annual budgets,
accountability for all funds, the power to make and execute contracts and the right to sue and be
sued. Each joint organization is governed by a board consisting of representatives from member
municipalities. Each board controls the operations of the respective joint organization, including
selection of management and approval of operating budgets, independent of any influence by
member municipalities beyond their representation on that board. Obligations and liabilities of this
joint organization are not the City’s responsibility and the City does not have an equity interest in
the assets of each joint organization except upon dissolution of the joint organization.
REVIEW DRAFT 86 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
A. The Marin County Integrated On-Line Library System (System)
The MARINet Library Consortium was formed to provide for the procurement, ownership,
operation, maintenance, and governance of shared library services among the libraries, public and
academic, in Marin County. Current services shared and paid for on a consortia level through
annual membership dues include an integrated library system including patron database,
cataloging system, and online catalog of materials; delivery of items between libraries in Marin, a
statewide library delivery service called Link+, numerous online resources, and more. The
Governing Board of the System consists of the library director or designated alternate of each
participant in the System. In accordance with the cost sharing formula developed by the library
directors of the participants, the City’s share of annual operating costs was $321,517 for the year
ended June 30, 2023. Financial statements of the System can be obtained from the County
Librarian, Marin County Free Library at 1401 Los Gamos Drive, Suite 200, San Rafael,
California 94903.
B.The Marin General Services Authority (MGSA)
The MGSA was formed by the County of Marin and twelve local agencies to acquire street light
facilities, operate the facilities during an eminent domain action against PG&E, and coordinate
the subsequent transfer of the facilities to the individual local agencies. Each of the local agency’s
share of contributions was based on the number of street lights to be acquired in the local
agency’s individual jurisdiction in relation to the total number of street lights to be acquired by
the Marin Streetlight Acquisition Joint Powers Authority. MGSA services now include street
light maintenance, abandoned vehicle abatement, taxicab regulation, administrative responsibility
for MarinMap and the CATV program formerly administered by the Marin Telecommunications
Authority established to regulate the rates for cable television service and equipment. The City’s
contribution to MGSA was $766,726 for the year ended June 30, 2023. Financial statements of
the MGSA can be obtained at 900 Fifth Avenue, Suite 100, San Rafael, California 94901.
C.The Marin Emergency Radio Authority (MERA)
MERA was formed on February 28, 1998, by the County of Marin and 25 local agencies within
the County to plan, finance, implement, manage, own, and operate a County-wide public safety
and emergency radio system. The Governing Board consists of one representative from each
member. The members entered into a Project Operating Agreement on February 1, 1999.
On February 1, 1999, the members entered into an Operating Agreement whereby members are
obligated to contribute service payments to cover the Authority’s operations and debt service. The
City’s portion of the obligation is 16.913%. The City contributed $401,659 of the Authority’s
operations and debt service for the fiscal year ended June 30, 2023. The City has established a
reserve in its internal service funds to pay future service payments. Financial statements of the
MERA can be obtained at 95 Rowland Way, Novato, California 94945.
REVIEW DRAFT 87 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
D. The Marin County Hazardous and Solid Waste Joint Powers Authority
The Authority was established by the County, local cities, and waste franchising districts to
finance, prepare, and implement source reduction and recycling elements on a county-wide
integrated waste management plan as required by State Assembly Bill 939. The City’s
contribution to the Authority was $18,741 for the year ended June 30, 2023. Financial statements
of the Authority can be obtained at 3501 Civic Center Drive, San Rafael, California 94903.
E.Central Marin Sanitation Agency (CMSA)
In October 1979, the District entered into a joint powers agreement with three neighboring
sanitation agencies in central Marin County forming the Central Marin Sanitation Agency
(CMSA). CMSA serves as a regional wastewater treatment plant for its four member agencies
and San Quentin Prison (SQ) and is governed by a five-member Board of Commissioners, two
appointed by the Board of Directors of the District, two appointed by the governing board of the
Ross Valley Sanitary District, and one appointed by the governing board of Sanitary District No. 2
(SD 2).
Total project costs for the joint venture were funded from federal (75%) and state (12.5%) clean
water grants and from local shares (12.5% total) allocated among the member agencies and SQ
based upon the weighted average of the strength and volume of sewage flows per member at
inception of the project. CMSA derives its annual funding for its operations and capital programs
almost exclusively from service charges to member agencies. The joint powers agreement does
not provide an explicit measurable right as required to establish an equity interest for any of the
joint venture participants, and in addition to, stipulates that all excess capital funds, if any, and all
excess administration, operations, and maintenance funds from whatever source, if any, are the
property of CMSA.
The financial statements of the CMSA are available at the CMSA office at 1301 Anderson Drive,
San Rafael, California 94901 and online at www.cmsa.us.
NOTE 13 – RISK MANAGEMENT
A. City
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The City established the
Risk Management Internal Service Fund to account for and finance its uninsured risks of loss.
The City manages risk by participating in a public entity risk pool (described below), purchasing
insurance and by retaining certain risks.
REVIEW DRAFT 88 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 13 – RISK MANAGEMENT (Continued)
Risk Coverage
Liability Coverage
The City is a member of the California Joint Powers Risk Management Authority (CJPRMA)
which covers general liability claims up to $40,000,000. The purpose of CJPRMA is to spread the
adverse effects of general liability losses among the member agencies. The City also purchases
commercial insurance for property damage claims with an insured amount of $173,070,291. The
City is self-insured up to $750,000 for each general liability claim and $25,000 for each property
damage claim. Once the self-insured retention is met, CJPRMA becomes responsible for payment
of all liability claims up to the limit. The City contributed a total of $1,154,942 in liability
coverage premiums during the fiscal year ended June 30, 2023. Five years after settlement of all
general liability claims for a program year, CJPRMA will retroactively adjust premium deposits
for any excess or deficiency in deposits related to paid claims and reserves. Financial statements
for the risk pool may be obtained from CJPRMA at 3201 Doolan Road, Suite 285, Livermore,
California 94551.
Workers’ Compensation Coverage
The City purchases insurance for workers’ compensation through Safety National Casualty
Corporation Excess Workers’ Compensation and Employers Liability Insurance with coverage up
to statutory limits. The City is self-insured up to $1,000,000 for each worker’s compensation
claim.
Insurance Internal Service Funds and Financial Reporting
The City records estimated liabilities for claims filed up to the amounts for which it retains risk in
the General Liability and Workers Compensation Internal Service Funds. Charges to the General
Fund and other funds are based on relative general liability and workers compensation risk
associated with the activities of each fund. Charges are recorded in the funds as expenditures or
expenses and as revenues in the respective internal service funds.
Generally accepted accounting principles require municipalities to record the liability for
uninsured claims and to reflect the current portion of this liability as an expenditure in the
financial statements. As discussed above, the City has coverage for such claims, but it has
retained the risk for the deductible or uninsured portion of these claims.
The City’s liability for uninsured general liability claims and workers’ compensation claims,
including claims incurred but not reported, are reported in the Statements of Net Position. The
City’s present value liability for uninsured claims below include a provision for claims incurred
but not reported using a discount rate of 2%.
REVIEW DRAFT 89 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 13 – RISK MANAGEMENT (Continued)
General Workers'Totals, as of June 30
Liability * Compensation * 2023 2022
Balance, beginning of year $4,696,5 04 $10,905,218 $15,601,722 $12,268,903
Current year claims and changes
in estimates 1,404,334 2,452,582 3,856,916 5,221,270
Claims paid (1,437,462) (2,234,478) (3,671,940) (1,888,451)
Balance, end of year $4,663,376 $11,123,322 $15,786,698 $15,601,722
Due in one year $1,110,010 $1,776,620 $2,886,630 $2,802,022
Due in more than one year 3,553,366 9,346,702 12,900,068 12,799,700
Total claim liabilities $4,663,376 $11,123,322 $15,786,698 $15,601,722
* Liability based on an actuarial valuation as of December 31, 2021, extrapolated to June 30, 2023.
The claims settlements have not exceeded insurance coverage for the past three years.
B. District
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction
of assets; errors and omissions; injuries to employees and natural disaster. The District
participates in a joint powers agreement with other entities forming the California Sanitation Risk
Management Authority (CSRMA), a public entity risk pool operating as a common risk
management and insurance program for 60 member entities. CSRMA is governed by a Board of
Directors composed of one representative from each member agency and meets three times per
year in conjunction with conferences of the California Association of Sanitation Agencies. The
Board controls the Note 1 operations of CSRMA, including selection of management and
approval of operating budgets, independent of any influence by member entities.
The District pays annual premiums to CSRMA for its primary insurance and property insurance
programs. Primary and property insurance programs are fully insured wherein CSRMA
purchases insurance as a group thereby reducing its costs. CSRMA provides both fully insured
and pooled insurance programs for its participating member entities. Because all employees of
the District are contracted employees from the City of San Rafael, workers’ compensation
insurance is not carried by the District but is provided through the City.
CSRMA’s primary and property insurance programs transfer risk to commercial insurance
policies for claims above deductibles, while the District retains risk for claims to the extent of
deductibles. Settled claims for the District have not exceeded coverage provided by CSRMA in
any of the past three fiscal years.
REVIEW DRAFT 90 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 13 – RISK MANAGEMENT (Continued)
The following summarizes active insurance policies as of June 30, 2023 together with coverage
limits for each insured event:
Insurance Program Limits Coverage Description
CSRMA - Allied World Assur. $3,000,000 Gen/Mgt liability - aggregate
CSRMA - Allied World Assur. $1,000,000 Gen/Mgt liability - occurrence
CSRMA - Allied World Assur. $1,000,000 Auto liability - accident
CSRMA - Allied World Assur. $4,000,000 Excess liability
CSRMA - Public Entity Property
Insurance Program (P.E.P.I.P.)$24,978,734 Special form property
CSRMA - Illinois Union Ins. $25,000,000 Pollution liability - tier 1
CSRMA - Illinois Union Ins. $2,000,000 Pollution liability - tier 2
CSRMA - Lloyds of London $2,000,000 Cyber liability - third party
CSRMA - Lloyds of London $2,000,000 Cyber liability - first party
CSRMA - Travelers Ins.$25,000 Identity theft
CSRMA - Lloyds of London $2,500,000 Deadly weapons - aggregate
The financial statements of CSRMA are available at their office: 100 Pine Street, 11th Floor, San
Francisco, California 94111.
NOTE 14 – LEASE AND SUBSCRIPTION LIABILITIES
A. Lease Liabilities
A summary of governmental activities lease transactions for the fiscal year ended June 30, 2023,
are as follows:
Balance Balance Current
June 30, 2022 Retirements June 30, 2023 Portion
Governmental Activities
Lease Liabilities
Fire Station 57 Land Lease $5,480,451 ($508) $5,479,943 $5,540
Copier Equipment Leases 180,245 (82,053) 98,192 56,855
Total $5,660,696 ($82,561) $5,578,135 $62,395
On June 21, 2016, the City entered into a lease agreement as lessee with the County of Marin to
lease property for constructing Fire Station # 57 for a 40 year term, ending on June 30, 2056. The
City is required to make monthly principal and interest lease payments in the amount of $13,343
commencing July 1, 2021. The monthly lease payments are increased annually in the amount of
3% every July 1. As of June 30, 2023, the balance of the lease liability was $5,479,943 and the
net value of the right-to-use asset was $5,163,292, including accumulated amortization of
$312,927.
REVIEW DRAFT 91 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 14 – LEASE AND SUBSCRIPTION LIABILITIES (Continued)
The City has entered into four separate equipment lease agreements as a lessee for copiers with
various vendors. The lease terms vary from 3-5 years and interest is implicit in the lease
agreements in the amount of 5%. The City is required to make monthly or yearly principal and
interest lease payments in varying amounts ranging from $1,003 to $50,278, depending on the
lease. As of June 30, 2023, the balance of the lease liability was $98,192 and the net value of the
right-to-use asset was $96,885, including accumulated amortization of $161,480. The future
principal and interest lease payments as of June 30, 2023 are as follows:
For the Year
Ended June 30 Principal Interest Total
2024 $62,395 $168,654 $231,049
2025 39,584 165,616 205,200
2026 29,156 164,311 193,467
2027 22,511 163,102 185,613
2028 28,841 162,340 191,181
2029-2033 252,404 793,055 1,045,459
2034-2038 472,289 739,684 1,211,973
2039-2043 756,237 648,772 1,405,009
2044-2048 1,119,143 509,648 1,628,791
2049-2053 1,579,033 309,179 1,888,212
2054-2058 1,216,542 57,837 1,274,379
Totals $5,578,135 $3,882,198 $9,460,333
B. Subscription-Based Information Technology Liabilities
A summary of subscription-based information technology arrangements (SBITA) transactions for
the fiscal year ended June 30, 2023, are as follows:
Balance
June 30, 2022 Balance Current
(as restated) Retirements June 30, 2023 Portion
Governmental Activities
Subscription liabilities
Axon $374,019 ($5,348) $368,671 $5,615
Microsoft 1,080,670 (162,496) 918,174 166,166
SeeClickFix 104,762 (49,762) 55,000 55,000
Total $1,559,451 ($217,606) $1,341,845 $226,781
On March 7, 2019, the City entered into a subscription agreement with Axon Enterprise, Inc. for a
subscription with a 5 year term. The City is required to make yearly subscription payments
ranging from $24,049 to $83,857 throughout the life of the subscription, which ends on
December 31, 2029. Interest is implicit in the subscription agreement in the amount of 5%. As of
June 30, 2023, the balance of the subscription liability was $368,671 and the net value of the
right-to-use asset was $320,588, including accumulated amortization of $53,431.
REVIEW DRAFT 92 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 14 – LEASE AND SUBSCRIPTION LIABILITIES (Continued)
On August 9, 2022, the City entered into a subscription agreement with Microsoft for a
subscription with a 6 year term. The City is required to make yearly subscription payments of
$212,075 throughout the life of the subscription, which ends on August 31, 2028. Interest is
implicit in the subscription agreement in the amount of 5%. As of June 30, 2023, the balance of
the subscription liability was $918,174 and the net value of the right-to-use asset was $900,558,
including accumulated amortization of $180,112.
On February 23, 2022, the City entered into a subscription agreement with the SeeClickFix, Inc.
for a subscription with a 2 year term. The City is required to make yearly subscription payments
ranging from $55,000 to $57,750 throughout the life of the subscription, which ends on August
24, 2024. As of June 30, 2023, the balance of the subscription liability was $55,000 and the net
value of the right-to-use asset was $52,381, including accumulated amortization of $52,381.
The future subscription and interest subscription payments as of June 30, 2023 follows:
For the Year
Ended June 30 Principal Interest Total
2024 $226,781 $67,092 $293,873
2025 240,178 55,753 295,931
2026 252,188 43,744 295,932
2027 264,797 31,135 295,932
2028 278,037 17,895 295,932
2029 79,864 3,993 83,857
Totals $1,341,845 $219,612 $1,561,457
NOTE 15 – COMMITMENTS AND CONTINGENCIES
A.City Litigation
The City is a defendant in several lawsuits arising from its normal operations. City management
is of the opinion that the potential claims against the City not covered by insurance resulting from
such litigation would not materially affect the basic financial statements of the City.
B.District
As of June 30, 2023, SRSD had several contracts for sewer improvement projects with remaining
obligations of approximately $7,800,000.
REVIEW DRAFT 93 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES
A. Redevelopment Dissolution
In an effort to mitigate its budget deficit, the State of California adopted ABx1 26 on June 28,
2011, amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities
except for limited specified activities as of that date and dissolved redevelopment agencies on
January 31, 2012.
The suspension provisions prohibited all redevelopment agencies from a wide range of activities,
including incurring new indebtedness or obligations, entering into, or modifying agreements or
contracts, acquiring, or disposing of real property, taking actions to adopt or amend
redevelopment plans and other similar actions, except actions required by law or to carry out
existing enforceable obligations, as defined in ABx1 26.
In addition, ABx1 26 and AB1484 directed the State Controller to review the activities of all
redevelopment agencies and successor agencies to determine whether an asset transfer between
an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did
occur and the public agency that received the asset is not contractually committed to a third party
for the expenditure or encumbrance of the asset, the legislation requires the State Controller to
order the asset returned to the redevelopment agency. This review was performed in May 2013,
and a report issued on July 29, 2013 (see section B of this footnote).
The City elected to become the Successor Agency to the Redevelopment Agency, and on
February 1, 2012, the Redevelopment Agency’s remaining net assets were distributed to the
Successor Agency. ABx1 26 requires the establishment of an Oversight Board to oversee the
activities of the Successor Agency and one was established on April 2, 2012. On July 1, 2018, the
County of Marin formed a county-wide Oversight Board to oversee the activities of all Successor
Agencies within the County, including San Rafael. The activities of the Successor Agency are
subject to review and approval of the Oversight Board, which is comprised of seven members.
The activities of the Successor Agency are reported in the Successor Agency to the
Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the
Oversight Board. The City provides administrative services to the Successor Agency to wind
down the affairs of the former Redevelopment Agency.
Pursuant to the dissolution of the City of San Rafael Redevelopment Agency, certain assets of the
Redevelopment Agency were distributed to the Housing Successor and all remaining
Redevelopment Agency assets and liabilities were distributed to the Successor Agency.
The City elected to become the Housing Successor and on February 1, 2012. Assets and
Liabilities relating to the Housing Successor are reported in the City’s Low and Moderate Income
Housing Special Revenue Fund.
REVIEW DRAFT 94 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
B. Redevelopment Property Tax Trust Fund (RPTTF)
The Successor Agency’s primary source of revenue comes from the RPTTF allocation distributed
by the County. Property tax revenues for each Project Area are deposited into the RPTTF, which
redistributes each Project Area’s tax increment under specified formulas. The County Auditor
administers the RPTTF and disburses twice annually from this fund pass-through payments to
affected taxing entities, an amount equal to the total of obligation payments that are required to be
paid from tax increment as denoted on the Recognized Obligation Payment Schedule (“ROPS”).
The disbursements are established in the treasury of the Successor Agencies, and various allowed
administrative fees and allowances. Any remaining balance is then distributed by the County
Auditor back to affected taxing entities under a prescribed method that accounts for pass-through
payments. The County Auditor is also responsible for the distributing other monies received from
the Successor Agency (from sale of assets, etc.) to the affected taxing entities. Successor agencies
in turn will use the amounts deposited into their respective funds to make payments for principal
and interest on loans and monies advanced to or indebtedness incurred by the dissolved
redevelopment agencies.
C.Long-Term Debt
1999 Tax Allocation Bonds and Capital Appreciation Bonds
On June 16, 1999, the former Agency issued Tax Allocation Bonds in the amount of $23,504,004.
The bonds were issued as Current Interest Bonds in the aggregate principal amount of
$21,115,000 and as Capital Appreciation Bonds in the original amount of $2,389,004. The
proceeds of the bonds were used to finance certain redevelopment activities of benefit to the
former Agency’s Central San Rafael Redevelopment Project Area.
In December 2009 of the former Agency exercised the redemption option of the Current Interest
Bonds. The outstanding balance of the Bonds was refunded, on a current basis, through the
issuance of the 2009 Tax Allocation Refunding Bonds as discussed below.
The Capital Appreciation Bonds matured annually after December 1 from 2018 to 2022, in
amounts ranging from $1,440,000 to $2,070,000 and bore interest at rates from 5.58% to 5.60%.
Interest on the Capital Appreciation Bonds compounded on each interest premium date and were
paid in full at maturity. The bonds were secured, on parity with the 1992 and 1995 bonds
(refunded in 2002), by a pledge and a lien on tax revenues and amounts on deposit in certain
funds and accounts held by the fiscal agent. The 1999 Tax Allocation Capital Appreciation Bonds
were paid off as of June 30, 2023.
REVIEW DRAFT 95 10/30/2023
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES (Continued)
2009 Tax Allocation Refunding Bonds
On December 14, 2009, the former Agency issued 2009 Tax Allocation Refunding Bonds in the
amount of $14,660,000 bearing interest at rates from 3.00% to 5.00%. The proceeds of the Series
2009 Bonds were used to refund the former Agency’s 1999 Tax Allocation Current Interest
Bonds and to advance funds to the City to finance street and parking improvements for the benefit
of the Agency’s Central San Rafael Redevelopment Project. Principal payments were due
annually on December 30 and interest payable semiannually on June 30 and December 30. The
2009 Tax Allocation Refunding Bonds were paid off as of June 30, 2023.
Use of Tax Increment
The former Agency pledged all future tax increment revenues for the repayment of the 1999
Capital Appreciation Bonds, and 2009 Tax Allocation Refunding Bonds. The pledge of all future
tax increment revenues ended upon repayment of $3.6 million in remaining debt service on the
Bonds, which occurred December 1, 2022. For fiscal year June 30, 2023, tax increment revenue
amounted to $630 thousand which, combined with fund balance, was used to make the debt
service payment of $5 million.
The following table summarizes the activity for the fiscal year ended June 30, 2023:
Authorized Balance Balance Current
and Issued June 30, 2022 Additions Retirements June 30, 2023 Portion
San Rafael Successor Agency
1999 Tax Allocation Bonds
Capital Appreciation Bonds
5.58%-5.6%, due 12/1/2022 $2,389,004 $2,013,587 $56,413 $2,070,000
2009 Tax Allocation Refunding Bonds
3.00%-5.00%, due 12/1/2022 14,660,000 1,460,000 1,460,000
Add: deferred bond premium costs 79,867 79,867
Total Successor Agency Long-term Debt $3,553,454 $56,413 $3,609,867
D. Commitment and Contingencies
State Approval of Enforceable Obligation
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-annually
that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to
the review and approval of the Oversight Board as well as the State Department of Finance. As of
June 30, 2023, the Successor Agency had prepared sixteen ROPS, all of which have been approved
by the Oversight Board and the California Department of Finance. The Department of Finance has
stated that all items on a future ROPS are subject to a subsequent review. The amount, if any, of
current obligations that may be denied by the Department of Finance cannot be determined at this
time. The City expects such amounts, if any, to be immaterial.
REVIEW DRAFT 96 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Measurement date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018
City's proportionate share 30.0453% 36.7394% 34.9538% 32.7180% 33.4752%
Proportionate share of total pension liability $677,753,565 $907,195,058 $900,629,287 $878,483,703 $947,923,920
Proportionate share of fiduciary net position 603,499,779 764,871,931 733,574,437 757,834,016 837,356,062
Proportionate share of the net pension liability $74,253,786 $142,323,127 $167,054,850 $120,649,687 $110,567,858
Plan fiduciar y net position as a percentage of the total pension lia 89.04% 84.31% 84.31%86.27% 88.34%
Covered payroll (report date)$28,563,328 $31,073,560 $32,126,272 $32,885,135 $36,349,651
Net pension liability as a percentage of covered payroll 259.96% 458.02% 519.99% 366.88% 304.18%
Measurement date 6/30/2019 6/30/2020 6/30/2021 6/30/2022
City's proportionate share 36.6081% 34.3574% 29.6650% 33.7322%
Proportionate share of total pension liability $1,082,900,638 $1,059,269,505 $959,104,784 $1,120,775,111
Proportionate share of fiduciary net position 949,023,107 901,989,929 1,007,281,093 1,015,298,454
Proportionate share of the net pension liability (asset)$133,877,531 $157,279,576 ($48,176,309) $105,476,657
Plan fiduciar y net position as a percentage of the total pension lia 87.64% 85.15% 105.02%90.59%
Covered payroll (report date)$33,106,430 $32,887,922 $31,697,590 $34,418,052
Net pension liability (asset) as a percentage of covered payroll 404.39% 478.23% -151.99% 306.46%
* - The fiscal year ended June 30, 2015 was the first year of implementation, therefore only nine years are shown.
Cost-Sharing Multiple Employer Plan
Schedule of the City's Proportionate Share of the Net Pension Liability
Last 10 years*
REVIEW DRAFT 97 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
Fis cal year ended, June 30 2015
Contractually required contribution $17,802,358
Contributions in Relation to the
Contractually required contribution 17,802,358
Contribution Deficiency/ (Excess)$0
Covered payroll $31,073,560
Contributions as a percentage of
covered payroll 57.29%
Notes to Schedule
Valuation Date / Timing 6/30/2013 (for contributions made in FY2014-2015)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2014-15):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Actuarial Loss from 2009
Remaining Amortization period Unfunded liabi lity - 17 years / Extraordinary Actuarial Loss - 25 years
Asset valuation method 5-year smoothed market, 80% /120% corridor around market
Inflation 3.25%
Salary increases 3.25% plus merit component based on employee classification and years of service
Investment Rate of Return 7.50%
Retirement Age
Healthy Mortality Sex distinct RP-2000 Combined Mortality projected to 2010 using Scale AA
with ages set back one year for male members / two years for female members
Disabled Mortality Sex distinct RP-2000 Combined Mortality projected to 2010 using Scale AA
with ages set forward three years for all members
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
REVIEW DRAFT 98 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fis cal year ended, June 30 2016
Contractually required contribution $19,339,577
Contributions in Relation to the
Contractually required contribution 19,339,577
Contribution Deficiency/ (Excess)$0
Covered payroll $32,126,272
Contributions as a percentage of
covered payroll 60.20%
Notes to Schedule
Valuation Date / Timing 6/30/2014 (for contributions made in FY2015-2016)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2015-16):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Actuarial Loss from 2009
Remaining Amortization period Unfunded liability - 16 years / Extraordinary Actuarial Loss - 24 years
Asset valuation method 5-year smoothed market, 80% /120% corridor around market
Inflation 3.25%
Salary increases 3.25% plus merit component based on employee classification and years of service
Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related Death rates for
Safety Members), with the 20-year static projection used by CalPERS replaced by
generational improvements from a base year of 2009 using Scale MP-2014
Disabled Mortality CalPERS 2014 Disability Mortality rates (Non-Industrial rates for Miscellaneous members
and Industrial Disability rates for Safety members), adjusted by 90% for Males and Females
(Miscellaneous and Safety) with the 20-year static projection used by CalPERS replaced by
generational improvements from a base year of 2009 using Scale MP-2014
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
(Continued)
Cost-Sharing Multiple Employer
Schedule of Contributions
REVIEW DRAFT 99 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fiscal year ended, June 30 2017
Contractually required contribution $20,003,001
Contributions in Relation to the
Contractually required contribution 20,003,001
Contribution Deficiency/ (Excess)$0
Covered payroll $32,885,135
Contributions as a percentage of
covered payroll 60.83%
Notes to Schedule
Valuation Date / Timing 6/30/2015 (for contributions made in FY2016-2017)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2016-17):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(24 years remaining as of 6/30/14), the remaining UAL as of June 30, 2013
(16 years as of 6/30/14), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 19 years remaining as of June 30, 2016
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages
set back one year for male members/two years for female members
Disabled Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages
set forward three years for all members
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
(Continued)
Cost-Sharing Multiple Employer
Schedule of Contributions
REVIEW DRAFT 100 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fiscal year ended, June 30 2018
Contractually required contribution $20,167,435
Contributions in Relation to the
Contractually required contribution 20,167,435
Contribution Deficiency/ (Excess) $0
Covered payroll $36,349,651
Contributions as a percentage of
covered payroll 55.48%
Notes to Schedule
Valuation Date / Timing 6/30/2016 (for contributions made in FY2017-2018)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2017-18):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(22 years remaining as of 6/30/16), the remaining UAL as of June 30, 2013
(14 years as of 6/30/16), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 18 years remaining as of June 30, 2017
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality Sex distinct CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related
death rates for Safety members)
Disabled Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages
set forward three years for all members
Disabled Mortality Rates of mortality among disabled members are given by CalPERS 2017
Disability Mortality rates (Non-Industrial rates for Miscellaneous members
and Industrial Disability rates for Safety members), adjusted by 90% for
Males (Miscellaneous and Safety) and 90% for Miscellaneous Females,
with the 15-year static projection used by CalPERS replaced by generational
improvements from a base year of 2014 using Scale MP-2017.
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
Schedule of Contributions
(Continued)
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
REVIEW DRAFT 101 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fiscal year ended, June 30 2019
Contractually required contribution $20,352,203
Contributions in Relation to the
Contractually required contribution 20,352,203
Contribution Deficiency/ (Excess) $0
Covered payroll $33,106,430
Contributions as a percentage of
covered payroll 61.48%
Notes to Schedule
Valuation Date / Timing 6/30/2017 (for contributions made in FY2018-2019)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2018-19):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(21 years remaining as of 6/30/17), the remaining UAL as of June 30, 2013
(13 years as of 6/30/17), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 17 years remaining as of June 30, 2018
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality Rates of mortality for active members are specified by CalPERS 2017
Pre-Retirement Non-Industrial Death Rates (plus Duty-Related Death
rates for Safety members), with the 20-year static projection used by
CalPERS replaced by generational improvements from a base year of
2014 using Scale MP-2017.
Disabled Mortality Rates of mortality among disabled members are given by CalPERS 2017
Disability Mortality rates (Non-Industrial rates for Miscellaneous members
and Industrial Disability rates for Safety members), adjusted by 90% for
Males (Miscellaneous and Safety) and 90% for Miscellaneous Females,
with the 20-year static projection used by CalPERS replaced by generational
improvements from a base year of 2014 using Scale MP-2017.
Cost-Sharing Multiple Employer
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Schedule of Contributions
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
(Continued)
REVIEW DRAFT 102 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fiscal year ended, June 30 2020
Contractually required contribution $20,031,614
Contributions in Relation to the
Contractually required contribution 20,031,614
Contribution Deficiency/ (Excess) $0
Covered payroll $32,887,922
Contributions as a percentage of
covered payroll 60.91%
Notes to Schedule
Valuation Date / Timing 6/30/2018 (for contributions made in FY2019-2020)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2019-20):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(20 years remaining as of 6/30/18), the remaining UAL as of June 30, 2013
(12 years as of 6/30/18), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 12 years remaining as of June 30, 2018
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality
Disabled Mortality
Rates of mortality for active members are specified by CalPERS 2017 Pre-Retirement Non-
Industrial Death rates (plus Duty-Related Death rates for Safety members), with the 15-year
static projection used by CalPERS replaced by generational improvements from a base year of
2014 using Scale MP-2017. 0% of all Miscellaneous and 95% of all Safety pre-retirement
deaths are assumed to be service-connected.
Rates of mortality for retired members and their beneficiaries are given by CalPERS 2017 Post-
Retirement Healthy Morality rates, adjusted by 90% for Males (Miscellaneous and Safety),
with the 15-year static projection used by CalPERS replaced by generational improvements
from a base year of 2014 using Scale MP-2017.
Schedule of Contributions
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
(Continued)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Cost-Sharing Multiple Employer
REVIEW DRAFT 103 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fiscal year ended, June 30 2021
Contractually required contribution $20,106,821
Contributions in Relation to the
Contractually required contribution 20,106,821
Contribution Deficiency/ (Excess)$0
Covered payroll $31,697,590
Contributions as a percentage of
covered payroll 63.43%
Notes to Schedule
Valuation Date / Timing 6/30/2019 (for contributions made in FY2020-2021)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2020 - 21):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(19 years remaining as of 6/30/19), the remaining UAL as of June 30, 2013
(11 years as of 6/30/19), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 11 years remaining as of June 30, 2019
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality
Disabled Mortality
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
(Continued)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Rates of mortality for active members are specified by CalPERS 2017 Pre-Retirement Non-Industrial Death
rates (plus Duty-Related Death rates for Safety members), with the 15-year static projection used by
CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-2017. 0% of all
Miscellaneous and 95% of all Safety pre-retirement deaths are assumed to be service-connected.
Rates of mortality for retired members and their beneficiaries are given by CalPERS 2017 Post-Retirement
Healthy Morality rates, adjusted by 90% for Males (Miscellaneous and Safety), with the 15-year static
projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale
MP-2017.
REVIEW DRAFT 104 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fiscal year ended, June 30 2022
Contractually required contribution $21,859,307
Contributions in Relation to the
Contractually required contribution (21,859,307)
Contribution Deficiency/ (Excess) $0
Covered payroll $34,418,052
Contributions as a percentage of
covered payroll 63.51%
Notes to Schedule
Valuation Date / Timing 6/30/2020 (for contributions made in FY2021-2022)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2021 - 22):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(18 years remaining as of 6/30/20), the remaining UAL as of June 30, 2013
(10 years as of 6/30/20), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 10 years remaining as of June 30, 2020
Asset valuation method Market Value
Inflation 2.50% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 6.75%
Retirement Age
Healthy Mortality
Disabled Mortality
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
(Continued)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Mortality rates for Miscellaneous active members are based on the sex distinct Public General
2010 Employee Mortality Table, with generational mortality improvements projected from
2010 using Projection Scale MP-2020, with no adjustments.
Mortality rates for Safety active members are based on the sex distinct Public Safety 2010
Above-Median Income Employee Mortality Table, with generational mortality improvements
projected from 2010 using Projection Scale MP-2020, with no adjustments. 10% of Safety
member active deaths are assumed to occur in the line of duty
Mortality Rates for Retired Disabled Members", should be"Rates of mortality for
Miscellaneous disabled members are based on the sex distinct Public General 2010 Disabled
Retiree Mortality Table, with generational mortality improvements projected from 2010 using
Projection Scale MP-2020, with no adjustments.
Rates of mortality for Safety disabled members are based on the sex distinct Public Safety
2010 Disabled Retiree Mortality Table, with generational mortality improvements projected
from 2010 using Projection Scale MP-2020, adjusted by 95% for males with no adjustment for
females.
REVIEW DRAFT 105 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Fiscal year ended, June 30 2023
Contractually required contribution $21,446,744
Contributions in Relation to the
Contractually required contribution (21,446,744)
Contribution Deficiency/ (Excess) $0
Covered payroll $35,543,480
Contributions as a percentage of
covered payroll 60.34%
Notes to Schedule
Valuation Date / Timing 6/30/2021 (for contributions made in FY2022-2023)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2022 - 23):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(17 years remaining as of 6/30/21), the remaining UAL as of June 30, 2013
(9 years as of 6/30/21), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 9 years remaining as of June 30, 2021
Asset valuation method Market Value
Inflation 2.50% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 6.75%
Retirement Age
Healthy Mortality
Disabled Mortality
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years (subject to available information: first year of implementation was Fiscal Year ended June 30, 2015)
(Continued)
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Mortality rates for Miscellaneous active members are based on the sex distinct Public General
2010 Employee Mortality Table, with generational mortality improvements projected from
2010 using Projection Scale MP-2020, with no adjustments.
Mortality rates for Safety active members are based on the sex distinct Public Safety 2010
Above-Median Income Employee Mortality Table, with generational mortality improvements
projected from 2010 using Projection Scale MP-2020, with no adjustments. 10% of Safety
member active deaths are assumed to occur in the line of duty.
Mortality Rates for Retired Disabled Members", should be"Rates of mortality for
Miscellaneous disabled members are based on the sex distinct Public General 2010 Disabled
Retiree Mortality Table, with generational mortality improvements projected from 2010 using
Projection Scale MP-2020, with no adjustments.
Rates of mortality for Safety disabled members are based on the sex distinct Public Safety
2010 Disabled Retiree Mortality Table, with generational mortality improvements projected
from 2010 using Projection Scale MP-2020, adjusted by 95% for males with no adjustment for
females.
REVIEW DRAFT 106 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
Measurement period 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Total OPEB liability
Service cost $766,000 $789,000 $822,000 $805,000 $687,000 $679,000 $566,000
Interest 3,447,000 3,540,000 3,435,000 3,515,000 3,196,000 3,238,000 2,946,000
Differences between expected and actual experience (4,107,000) (3,040,000) (4,063,000) -
Assumption changes 4,831,000 (2,735,000) 2,748,000 -
Benefit payments, including refunds of employee contributions (2,896,000) (3,015,000) (3,028,000) (3,072,000) (3,225,000) (3,315,000) (3,286,000)
Net change in total OPEB liability 1,317,000 2,038,000 1,229,000 (4,527,000) 658,000 (713,000) 226,000
Total OPEB liability - beginning 48,226,000 49,543,000 51,581,000 52,810,000 48,283,000 48,941,000 48,228,000
Total OPEB liability - ending (a)$49,543,000 $51,581,000 $52,810,000 $48,283,000 $48,941,000 $48,228,000 $48,454,000
OPEB fiduciary net position
Contributions - employer $2,896,000 $3,475,000 $3,573,000 $3,725,000 $3,784,000 $3,323,000 $3,294,000
Net investment income 157,000 1,675,000 1,425,000 1,224,000 770,000 6,319,000 (3,922,000)
Benefit payments, including refunds of employee contributions (2,896,000) (3,015,000) (3,028,000) (3,072,000) (3,225,000) (3,315,000) (3,286,000)
Administrative expense (7,000) (8,000) (44,000) (12,000) (19,000) (17,000) (15,000)
Net change in plan fiduciary net position 150,000 2,127,000 1,926,000 1,865,000 1,310,000 6,310,000 (3,929,000)
Plan fiduciary net position - beginning 15,608,000 15,758,000 17,885,000 19,811,000 21,676,000 22,986,000 29,296,000
Plan fiduciary net position - ending (b)$15,758,000 $17,885,000 $19,811,000 $21,676,000 $22,986,000 29,296,000 25,367,000
Plan net OPEB liability - ending (a) - (b)$33,785,000 $33,696,000 $32,999,000 $26,607,000 $25,955,000 $18,932,000 $23,087,000
Plan fiduciary net position as a percentage
of the total OPEB liability 31.81% 34.67% 37.51% 44.89% 46.97% 60.74% 52.35%
Covered employee payroll $37,846,000 $32,885,000 $36,350,000 $40,496,000 $39,920,000 $39,310,000 $43,602,857
Plan net OPEB liability as a percentage of covered employee payroll 89.27% 102.47% 90.78% 65.70% 65.02% 48.16% 52.95%
Historical information is required only for the measurement periods for which GASB 75 is applicable.
Other Post-Employment Benefits (OPEB)
Last Ten Fiscal Years
Agent Multiple Emplo yer Defined Benefit Plan
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
REVIEW DRAFT 107 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
SCHEDULE OF CONTRIBUTIONS
Agent Multiple Employer Defined Benefit Plan
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
Fiscal year 2016-17
Actuarially determined contribution $3,450,000
Contributions in relation to
the actuarially determined contribution (3,475,000)
Contribution deficiency (excess) ($25,000)
Covered employee payroll $32,885,000
Contributions as a percentage of
covered employee payroll 10.49%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 06/30/17.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2015
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 19 years remaining as of June 30, 2016
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 7.25%
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2015 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/14 MCERA assumptions
Medical Trend Non-Medicare - 6.5% for 2017, decreasing 0.5% per year to an ultimate
rate of 4.50% for 2021 and Medicare - 6.7% for 2017, decreasing to an
ultimate rate of 4.5% for 2021 and later years
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived
PEMHCA minimum - 60%
Cap Increases None
Mortality projected fully generational with Scale MP-14,
modified to converge to ultimate improvement rates in 2022
Same as discount rate - expected City contributions projected
to keep sufficient plan assets to pay all benefits from trust
REVIEW DRAFT 108 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2017-18
Actuarially determined contribution $3,530,000
Contributions in relation to
the actuarially determined contribution (3,563,000)
Contribution deficiency (excess)($33,000)
Covered employee payroll $36,350,000
Contributions as a percentage of
covered employee payroll 9.80%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/18 and
6/30/19.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2017
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 18 years remaining as of June 30, 2017
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.75% at June 30, 2017; 7.25% at June 30, 2016
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/17 MCERA assumptions
Medical Trend Non-Medicare - 7.5% for 2019, decreasing to 4.00% for
2076 and later years and Medicare - 6.5% for 2019, decreasing
to 4.00% for 2076 and later years
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived
PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Post-retirement mortality: projected fully generational with Scale MP-2017
Pre-retirement mortality: projected 15-year static with 90% of Scale MP-2016
Same as discount rate - expected City contributions projected to keep sufficient
plan assets to pay all benefits from trust
REVIEW DRAFT 109 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2018-19
Actuarially determined contribution $3,612,000
Contributions in relation to
the actuarially determined contribution (3,725,000)
Contribution deficiency (excess)($113,000)
Covered employee payroll $40,496,000
Contributions as a percentage of
covered employee payroll 9.20%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/18 and
6/30/19.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2017
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 18 years remaining as of June 30, 2017
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.75% at June 30, 2017; 7.25% at June 30, 2016
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/17 MCERA assumptions
Medical Trend Non-Medicare - 7.5% for 2019, decreasing to 4.00% for
2076 and later years and Medicare - 6.5% for 2019, decreasing
to 4.00% for 2076 and later years
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived
PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Pre-retirement mortality: projected 15-year static with 90% of Scale MP-2016
Post-retirement mortality: projected fully generational with Scale MP-2017
Same as discount rate - expected City contributions projected to keep sufficient
plan assets to pay all benefits from trust
REVIEW DRAFT 110 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2019-20
Actuarially determined contribution $3,677,000
Contributions in relation to
the actuarially determined contribution (3,784,000)
Contribution deficiency (excess) ($107,000)
Covered employee payroll $39,920,000
Contributions as a percentage of
covered employee payroll 9.48%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2019 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/20 and
6/30/21.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2019
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 16 years remaining as of June 30, 2019
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.75% at June 30, 2019 and June 30, 2018, respectively
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/19 MCERA assumptions
Medical Trend Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate
of 4.0% in 2076 and Medicare - 6.3% for 2021, decreasing to
an ultimate rate of 4.00% in 2076
Healthcare participation for future retirees Capped benefit: 90% currently covered, 70% currently waived
PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Mortality projected fully generational with Scale MP-2019
Same as discount rate - expected City contributions projected to keep sufficient
plan assets to pay all benefits from trust
REVIEW DRAFT 111 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2020-21
Actuarially determined contribution $3,027,000
Contributions in relation to
the actuarially determined contribution (3,322,583)
Contribution deficiency (excess)($295,583)
Covered employee payroll $39,310,000
Contributions as a percentage of
covered employee payroll 8.45%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2019 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/20 and
6/30/21.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2019
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 16 years remaining as of June 30, 2019
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.75% at June 30, 2020 and June 30, 2019, respectively
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/19 MCERA assumptions
Medical Trend Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate
of 4.0% in 2076 and Medicare - 6.3% for 2021, decreasing to
an ultimate rate of 4.00% in 2076
Healthcare participation for future retirees Capped benefit: 90% currently covered, 70% currently waived
PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Emplo yer Defined Benefit Plan
Mortality projected fully generational with Scale MP-2019
Same as discount rate - expected City contributions projected to keep sufficient
plan assets to pay all benefits from trust
REVIEW DRAFT 112 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
Fiscal year 2021-22
Actuarially determined contribution $3,093,000
Contributions in relation to
the actuarially determined contribution (3,294,000)
Contribution deficiency (excess)($201,000)
Covered employee payroll $42,604,000
Contributions as a percentage of
covered employee payroll 7.73%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2021 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/22 and
6/30/23.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2021
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 14 years remaining as of June 30, 2021
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.25% at June 30, 2022 and June 30, 2021, respectively
Contribution Policy City contributes full ADC
General Inflation 2.50% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2019 valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 2.75%
Merit - Increases - same as MCERA Assumptions as of June 30, 2020 valuation
Medical Trend Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076
Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of 3.75%
Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2
Healthcare participation for future retirees Capped benefit: 90% currently covered, 70% currently waived
PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Emplo yer Defined Benefit Plan
Mortality projected fully generational with Scale MP-2021
Same as discount rate - expected City contributions projected to keep sufficient
plan assets to pay all benefits from trust
REVIEW DRAFT 113 10/30/2023
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
Fiscal year 2022-23
Actuarially determined contribution $2,618,000
Contributions in relation to
the actuarially determined contribution (3,183,000)
Contribution deficiency (excess)($565,000)
Covered employee payroll $43,602,857
Contributions as a percentage of
covered employee payroll 7.30%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2021 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/22 and
6/30/23.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2021
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 13 year fized period for 2022/23
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.25%
Contribution Policy City contributes full ADC
General Inflation 2.5% per annum
Mortality, Retirement, Disability, Termination 0630/20 MCERA Valuation assumptions
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - Increases - same as MCERA Assumptions as of June 30, 2020 valuation
Medical Trend Non-Medicare - 6.5% for 2023 decreasing 3.75% for 2076 and later
Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of3.75% in 2076
Medicare (Kaiser) - 4.60% for 2019, decreasing to an ultimate rate of 3.75% in 2076
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived
PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Mortality projected fully generational with Scale MP-2021
Same as discount rate - expected City contributions projected to keep sufficient
REVIEW DRAFT 114 10/30/2023
REVIEW DRAFT 10/30/2023
GENERAL FUND AND MAJOR SPECIAL REVENUE FUND
BUDGET-TO-ACTUAL STATEMENTS
Generally accepted accounting principles dictate that budget-to-actual information in the basic financial
statements should be limited to the General Fund and major Special Revenue Funds. This section is provided
for the presentation of Budget-to-Actual Statements for the General Fund, Traffic and Housing Mitigation,
and the Gas Tax Special Revenue Funds.
Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the General
Fund and Special Revenue Funds.
REVIEW DRAFT 116 10/30/2023
CITY OF SAN RAFAEL
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and special assessments $85,123,414 $86,623,414 $86,808,092 $184,678
Licenses and permits 3,010,159 3,010,159 3,002,122 (8,037)
Fines and forfeitures 186,732 186,732 228,966 42,234
Use of money and properties 47,500 47,500 684,150 636,650
Intergovernmental 4,345,765 4,345,765 3,521,419 (824,346)
Charges for services 3,048,215 3,048,215 2,843,882 (204,333)
Other revenue 1,006,395 1,006,395 1,010,712 4,317
Total Revenues 96,768,180 98,268,180 98,099,343 (168,837)
EXPENDITURES
Current:
General government 15,361,785 15,762,644 13,114,356 2,648,288
Public safety 48,463,764 49,463,764 47,070,997 2,392,767
Public works and parks 14,273,239 14,273,239 14,602,766 (329,527)
Community development 6,323,809 6,398,809 5,174,237 1,224,572
Culture and recreation 3,266,529 3,266,529 3,201,698 64,831
Capital outlay 92,776 92,776 92,776
Debt service:
Principal 2,956,642 2,956,642 3,044,551 (87,909)
Interest and fiscal charges 2,232,925 2,232,925 2,241,875 (8,950)
Total Expenditures 92,971,469 94,447,328 88,450,480 5,996,848
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,796,711 3,820,852 9,648,863 5,828,011
OTHER FINANCING SOURCES (USES)
Transfers in 1,770,072 1,131,142 1,131,142
Transfers out (3,307,000) (16,793,126) (16,793,126)
Total Other Financing Sources (Uses) (1,536,928) (15,661,984) (15,661,984)
Net Change in Fund Balance $2,259,783 ($11,841,132) (6,013,121) $5,828,011
FUND BALANCE, BEGINNING OF YEAR 33,781,119
FUND BALANCE, END OF YEAR $27,767,998
REVIEW DRAFT 117 10/30/2023
CITY OF SAN RAFAEL
TRAFFIC AND HOUSING MITIGATION SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $112,664 $112,664
Intergovernmental $225,000 $225,000 225,000
Charges for services 650,000 650,000 697,658 47,658
Total Revenues 875,000 875,000 1,035,322 160,322
EXPENDITURES
Current:
General government 105,000 105,000 105,000
Public works and parks 600,000 600,000 142,969 457,031
Community development 16,009 (16,009)
Capital outlay 200,000 200,000 64,050 135,950
Total Expenditures 905,000 905,000 223,028 681,972
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (30,000) (30,000) 812,294 842,294
OTHER FINANCING SOURCES (USES)
Transfers in 8,897 8,897
Total Other Financing Sources (Uses)8,897 8,897
Net Change in Fund Balance ($30,000) ($21,103) 821,191 $842,294
4,871,871
FUND BALANCE, END OF YEAR $5,693,062
FUND BALANCE, BEGINNING OF YEAR
REVIEW DRAFT 118 10/30/2023
CITY OF SAN RAFAEL
GAS TAX SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $79,353 $79,353
Intergovernmental $29,435,867 $29,435,867 19,123,868 (10,311,999)
Charges for services 2,007,767 2,007,767 2,419,840 412,073
Other revenue 250,000 250,000 137,258 (112,742)
Total Revenues 31,693,634 31,693,634 21,760,319 (9,933,315)
EXPENDITURES
Current:
Public works and parks 2,585,000 3,405,000 3,695,723 (290,723)
Capital outlay 25,660,000 26,655,013 13,170,654 13,484,359
Total Expenditures 28,245,000 30,060,013 16,866,377 13,193,636
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,448,634 1,633,621 4,893,942 3,260,321
OTHER FINANCING SOURCES (USES)
Transfers in 32,400 32,400
Transfers out (650,000) (8,897) (8,897)
Total Other Financing Sources (Uses) (650,000) 23,503 23,503
Net Change in Fund Balance $2,798,634 $1,657,124 4,917,445 $3,260,321
FUND BALANCE, BEGINNING OF YEAR 6,918,267
FUND BALANCE, END OF YEAR $11,835,712
REVIEW DRAFT 119 10/30/2023
SUPPLEMENTARY INFORMATION
REVIEW DRAFT 120 10/30/2023
CITY OF SAN RAFAEL
ESSENTIAL FACILITIES CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $27,274 $27,274
Total Revenues 27,274 27,274
EXPENDITURES
Capital outlay $3,996,830 $6,213,497 6,213,497
Total Expenditures 3,996,830 6,213,497 6,213,497
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (3,996,830) (6,213,497) (6,186,223) 27,274
OTHER FINANCING SOURCES (USES)
Transfers in 586,926 586,926
Total Other Financing Sources (Uses)586,926 586,926
Net Change in Fund Balance ($3,996,830) ($5,626,571) (5,599,297) $27,274
FUND BALANCE, BEGINNING OF YEAR 9,317,312
FUND BALANCE, END OF YEAR $3,718,015
REVIEW DRAFT 121 10/30/2023
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Recreation Revolving Fund – Established to administer the Recreation Department’s program and
facility rental charge and accounts for the Recreation Memorial Fund.
Baypoint Lagoons Assessment District Fund – The Baypoint Lagoons Lighting and Landscape
District was formed to protect and enhance wildlife habitat and water quality in Baypoint (Spinnaker)
Lagoon and the adjacent diked salt marsh.
Household Hazmat Facility Fund – Established to account for State mandated hazardous materials
information, collection, and reporting. Expenditures include inspection of businesses for compliance
with regulations. This fund also serves as the depository for countywide Household Hazardous Waste
Program.
Childcare Fund – Established to administer and account for childcare programs at eight sites
throughout the City.
Loch Lomond #10 Community Facilities District Fund – Established to provide maintenance for
stormwater and geotechnical mitigation facilities. A Mello Roos District was formed to fund this
maintenance.
Loch Lomond Marina #2 Community Facilities District Fund – Established to report tax
assessments and maintenance expenditures of the District.
Library Fund – Established to account for restricted library activities that are intended to be self-
funding.
Library Assessment Fund – Established to account for a special parcel tax dedicated to public library
services and facilities, equipment, and technology improvements.
Public Safety Fund – Established for special police services that are intended to be self-funding.
Stormwater Fund – Established to provide for self-funding storm drain maintenance program plus
separate programs through the County and Bay Area to educate residents about urban runoff pollution.
Development Services Fund – Established to account for development activities that are supported by
external sources of funds. This fund does not account for the operating costs of building, planning, and
engineering, which are located in the General Fund.
Grants Fund – Established to account for grants for the Library, Childcare, Police and Falkirk Cultural
Center.
Parkland Dedication Fund – Established to account for long-term developer deposits used to enhance
and maintain the park structure within City limits.
Emergency Medical Services Fund – Established to account for the Emergency Medical Services and
Transportation program that provides services to all segments of the community.
Business Improvement Fund – Established to account for activities held in Downtown San Rafael.
REVIEW DRAFT 122 10/30/2023
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Pt. San Pedro Maintenance Portion Special Revenue Fund – Established to account for ongoing
maintenance needs within the Pt. San Pedro assessment district.
Low and Moderate Income Housing Special Revenue Fund – Established to account for the
activities related to the assets assumed by the City as Housing Successor to the San Rafael
Redevelopment Agency for the housing activities of the former Redevelopment Agency.
Measure A Open Space Special Revenue Fund – Established to account for the use of proceeds
distributed by the County of Marin from Measure A, as well as other supplementary matching or City-
funding for the operation or maintenance of open space, park or recreation lands.
Measure G Cannabis Special Revenue Fund – Established for the purpose of reporting tax revenue and
expenditures related to Cannabis activities authorized by Measure G.
Measure C Wildfire Prevention Special Revenue Fund – Established for the purpose of reporting tax
revenue and expenditures related to coordinated wildfire prevention activities authorized by Measure C, a
parcel tax measure approved on March 3, 2020 by a two-thirds supermajority vote. This is a ten-year
parcel tax levying up to 10 cents per building square foot tax and $75 per multifamily unit.
CAPITAL PROJECTS FUNDS
Capital Improvement Fund – Established for the costs associated with major capital improvement
projects not tied to specific funds elsewhere. Improvements could include medians, parkways,
sidewalks, and other public assets.
Bedroom Tax Fund – Established to collect funds from multiple-unit housing used to pay for
maintaining and developing parks within local neighborhoods.
Assessment Districts Fund – Established to account for ongoing construction and improvement needs
within the following assessment districts: Peacock Gap, Kerner Boulevard, Sun Valley/Lucas Valley
Open Space, East San Rafael Drainage Assessment District 1.
Park Capital Projects Fund – Established to account for capital improvements for all City owned
parks, whether paid for by City funds, grants, donations, or partnership with the community.
Open Space Fund – Established for the acquisition of open space.
REVIEW DRAFT 123 10/30/2023
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2023
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.
ASSETS
Cash and investments $840,012 $224,610 $559,605 $651,512 $809,720
Restricted cash and investments
Receivables:
Accounts 178,237 343,366
Taxes 127 142
Grants 913
Interest
Loans
Leases 177,143
Prepaid expense 230
Total Assets $1,195,622 $224,737 $902,971 $652,425 $809,862
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $194,965 $330,514 $41,460
Deposits payable
Developer deposits payable
Unearned revenue 468,456
Total Liabilities 663,421 330,514 41,460
Deferred Inflows of Resources:
Unavailable revenue - leases 169,488
Total Deferred Inflows of Resources 169,488
Fund Balances:
Nonspendable 230
Restricted 362,483 $224,737 572,457 610,965 809,862
Committed
Assigned
Total Fund Balances 362,713 224,737 572,457 610,965 809,862
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $1,195,622 $224,737 $902,971 $652,425 $809,862
SPECIAL REVENUE FUNDS
REVIEW DRAFT 124 10/30/2023
Loch Lomond
Marina #2
Community Library Public Development Parkland
Facilities Dist. Library Assessment Safety Stormwater Services Grants Dedication
$899,821 $4,444,598 $1,024,440 $156,410 $7,269,767 $192,304 $1,090,357 $359,989
115,583 226,438 165,000
1,221 4,664 4,216
31,019
276,042
$901,042 $4,444,598 $1,029,104 $156,410 $7,389,566 $694,784 $1,286,376 $359,989
$4,087 $134 $94,819 $32,047 $760,107 $29,614 $50,737
1,311 185,256
3,635
4,087 134 94,819 32,047 760,107 34,560 235,993
260,196
260,196
896,955 4,444,464 934,285 124,363 6,629,459 400,028 1,050,383 $359,989
896,955 4,444,464 934,285 124,363 6,629,459 400,028 1,050,383 359,989
$901,042 $4,444,598 $1,029,104 $156,410 $7,389,566 $694,784 $1,286,376 $359,989
(Continued)
SPECIAL REVENUE FUNDS
REVIEW DRAFT 125 10/30/2023
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
FOR THE YEAR ENDED JUNE 30, 2023
Low and
Emergency Pt. San Pedro Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space
ASSETS
Cash and investments $1,323,721 $58,594 $177,407 $27,592 $228,836
Restricted cash and investments
Receivables:
Accounts 298,748 45,232
Taxes 26,131 817 279,694
Grants 658,492
Interest
Loans 1,799,220
Leases
Prepaid expense 182,660
Total Assets $2,489,752 $58,594 $178,224 $1,872,044 $508,530
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $25,251 $58,594 $3,256 $33,477
Deposits payable
Developer deposits payable
Unearned revenue
Total Liabilities 25,251 58,594 3,256 33,477
Deferred Inflows of Resources:
Unavailable revenue - leases
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable 182,660
Restricted 2,281,841 174,968 $1,872,044 475,053
Committed
Assigned
Total Fund Balances 2,464,501 174,968 1,872,044 475,053
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $2,489,752 $58,594 $178,224 $1,872,044 $508,530
SPECIAL REVENUE FUNDS
REVIEW DRAFT 126 10/30/2023
SPECIAL
REVENUE
FUNDS
Total
Measure C Park Non-Major
Measure G Wildfire Capital Bedroom Assessment Capital Open Governmental
Cannabis Prevention Improvement Tax Districts Projects Space Funds
$1,089,495 $508,218 $4,137,231 $142,339 $216,354 $21,861 $119,248 $26,574,041
82,369 82,369
1,020,805 2,393,409
61,241 378,253
690,424
6,158 6,158
1,799,220
453,185
182,890
$1,150,736 $1,529,023 $4,143,389 $142,339 $298,723 $21,861 $119,248 $32,559,949
$142,612 $153,585 $1,955,259
2,821 189,388
3,635
468,456
142,612 156,406 2,616,738
429,684
429,684
182,890
1,150,736 1,386,411 142,339 298,723 25,202,545
3,986,983 21,861 4,008,844
119,248 119,248
1,150,736 1,386,411 3,986,983 142,339 298,723 21,861 119,248 29,513,527
$1,150,736 $1,529,023 $4,143,389 $142,339 $298,723 $21,861 $119,248 $32,559,949
CAPITAL PROJECTS FUNDS
REVIEW DRAFT 127 10/30/2023
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.
REVENUES
Taxes and special assessments $25,368 $28,308
Use of money and properties $44,505 2,713 $5,586 $5,098 10,010
Intergovernmental 8,110 770,325
Charges for services 1,958,147 177,582 3,183,904
Other revenue 10,802 32,304
Total Revenues 2,021,564 28,081 183,168 3,991,631 38,318
EXPENDITURES
Current:
General government 1,720
Public safety 120,622
Public works and parks 7,589 (36)
Culture and recreation 4,350,403 3,725,218
Capital outlay
Total Expenditures 4,350,403 7,589 122,342 3,725,218 (36)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,328,839) 20,492 60,826 266,413 38,354
OTHER FINANCING SOURCES (USES)
Transfers in 2,207,000
Transfers out
Total Other Financing Sources (Uses)2,207,000
Net Change in Fund Balances (121,839) 20,492 60,826 266,413 38,354
Fund Balance, Beginning 484,552 204,245 511,631 344,552 771,508
Fund Balance, Ending $362,713 $224,737 $572,457 $610,965 $809,862
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
SPECIAL REVENUE FUNDS
REVIEW DRAFT 128 10/30/2023
Loch Lomond
Marina #2
Community Library Public Development Parkland
Facilities Dist. Library Assessment Safety Stormwater Services Grants Dedication
$244,286 $1,132,972 $11,797
10,453 $48,755 11,534 $1,395 $21,280 $50,383 4,452
1,400,000 82,847 $1,670,887
4,148 832,584
15,831 29,671 3,079 1,177
254,739 1,468,734 1,144,506 113,913 856,943 50,383 1,672,064 16,249
543,443
207,633 485,230
94,693 858,666
44,833 1,169,872
66,957 1,888,523 463
94,693 111,790 1,169,872 207,633 2,747,189 1,029,136
160,046 1,356,944 (25,366) (93,720) (1,890,246) 50,383 642,928 16,249
85,000 7,250,000 11,253
85,000 7,250,000 11,253
160,046 1,356,944 (25,366) (8,720) 5,359,754 50,383 654,181 16,249
736,909 3,087,520 959,651 133,083 1,269,705 349,645 396,202 343,740
$896,955 $4,444,464 $934,285 $124,363 $6,629,459 $400,028 $1,050,383 $359,989
(Continued)
SPECIAL REVENUE FUNDS
REVIEW DRAFT 129 10/30/2023
Low and
Emergency Pt. San Pedro - Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space
REVENUES
Taxes and special assessments $5,224,387 $141,705 $586,957
Use of money and properties 8,656 1,960 $30,833 5,504
Intergovernmental 712,173
Charges for services 3,708,025
Other revenue 400,679 8,845 54,407
Total Revenues 10,053,920 152,510 85,240 592,461
EXPENDITURES
Current:
General government 85,766
Public safety 8,422,019
Public works and parks 117,578 15,640
Culture and recreation 172,258
Capital outlay 710,466
Total Expenditures 8,422,019 117,578 85,766 898,364
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,631,901 34,932 (526) (305,903)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances 1,631,901 34,932 (526) (305,903)
Fund Balance, Beginning 832,600 140,036 1,872,570 780,956
Fund Balance, Ending $2,464,501 $174,968 $1,872,044 $475,053
SPECIAL REVENUE FUNDS
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
REVIEW DRAFT 130 10/30/2023
Total
Measure C Park Non-Major
Measure G Wildfire Capital Bedroom Assessment Capital Open Governmental
Cannabis Prevention Improvement Tax Districts Projects Space Funds
$337,028 $1,822,040 $10,455 $9,565,303
9,185 4,325 $43,089 1,734 $969 $1,493 323,912
1,076,257 5,720,599
9,864,390
8,664 605,505 $3,925 1,174,889
346,213 2,911,286 648,594 12,189 969 3,925 1,493 26,649,093
113,339 744,268
39,320 2,328,057 11,602,881
1,094,130
9,462,584
1,422,230 4,088,639
152,659 2,328,057 1,422,230 26,992,502
193,554 583,229 (773,636) 12,189 969 3,925 1,493 (343,409)
3,264,200 12,817,453
(11,069)(7,388)(18,457)
(11,069)3,264,200 (7,388)12,798,996
182,485 583,229 2,490,564 12,189 (6,419) 3,925 1,493 12,455,587
968,251 803,182 1,496,419 130,150 305,142 17,936 117,755 17,057,940
$1,150,736 $1,386,411 $3,986,983 $142,339 $298,723 $21,861 $119,248 $29,513,527
CAPITAL PROJECTS FUNDSSPECIAL REVENUE FUNDS
REVIEW DRAFT 131 10/30/2023
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
SPECIAL REVENUE FUNDS
Recreation Revolving Baypoint Lagoons Assessment District
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $25,000 $25,368 $368
Use of money and properties $28,900 $44,505 $15,605 2,713 2,713
Intergovernmental 48,000 8,110 (39,890)
Charges for services 2,269,030 1,958,147 (310,883)
Other revenue 475 10,802 10,327
Total Revenues 2,346,405 2,021,564 (324,841) 25,000 28,081 3,081
EXPENDITURES
Current:
General government
Public safety
Public works and parks 208,655 7,589 201,066
Culture and recreation 4,770,850 4,350,403 420,447
Capital outlay
Total Expenditures 4,770,850 4,350,403 420,447 208,655 7,589 201,066
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,424,445) (2,328,839) 95,606 (183,655) 20,492 204,147
OTHER FINANCING SOURCES (USES)
Transfers in 2,207,000 2,207,000
Transfers out
Total Other Financing Sources (Uses) 2,207,000 2,207,000
NET CHANGE IN FUND BALANCE ($217,445) (121,839) $95,606 ($183,655) 20,492 $204,147
FUND BALANCES, BEGINNING OF YEAR 484,552 204,245
FUND BALANCES, END OF YEAR $362,713 $224,737
REVIEW DRAFT 132 10/30/2023
Loch Lomond #10
Household Hazmat Facility Childcare
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$25,000 $28,308 $3,308
$5,586 $5,586 $5,098 $5,098 10,010 10,010
$460,945 770,325 309,380
$187,500 177,582 (9,918) 2,980,000 3,183,904 203,904
32,304 32,304
187,500 183,168 (4,332) 3,440,945 3,991,631 550,686 25,000 38,318 13,318
1,720 (1,720)
177,428 120,622 56,806
23,418 (36) 23,454
3,931,097 3,725,218 205,879
177,428 122,342 55,086 3,931,097 3,725,218 205,879 23,418 (36) 23,454
10,072 60,826 50,754 (490,152) 266,413 756,565 1,582 38,354 36,772
$10,072 60,826 $50,754 ($490,152) 266,413 $756,565 $1,582 38,354 $36,772
511,631 344,552 771,508
$572,457 $610,965 $809,862
(Continued)
Community Facilities District
SPECIAL REVENUE FUNDS
REVIEW DRAFT 133 10/30/2023
Library
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $83,000 $244,286 $161,286
Use of money and properties 10,453 10,453 $48,755 $48,755
Intergovernmental $1,000 1,400,000 1,399,000
Charges for services 1,150 4,148 2,998
Other revenue 14,500 15,831 1,331
Total Revenues 83,000 254,739 171,739 16,650 1,468,734 1,452,084
EXPENDITURES
Current:
General government
Public safety
Public works and parks 191,114 94,693 96,421
Culture and recreation 111,790 44,833 66,957
Capital outlay 66,957 (66,957)
Total Expenditures 191,114 94,693 96,421 111,790 111,790
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (108,114) 160,046 268,160 (95,140) 1,356,944 1,452,084
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE ($108,114) 160,046 $268,160 ($95,140) 1,356,944 $1,452,084
FUND BALANCES, BEGINNING OF YEAR 736,909 3,087,520
FUND BALANCES, END OF YEAR $896,955 $4,444,464
Community Facilities District
SPECIAL REVENUE FUNDS
Loch Lomond Marina #2
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
REVIEW DRAFT 134 10/30/2023
SPECIAL REVENUE FUNDS
Library Assessment Public Safety Stormwater
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,133,502 $1,132,972 ($530)
11,534 11,534 $1,395 $1,395 $21,280 $21,280
$80,000 82,847 2,847
$830,000 832,584 2,584
15,000 29,671 14,671 3,079 3,079
1,133,502 1,144,506 11,004 95,000 113,913 18,913 830,000 856,943 26,943
207,634 207,633 1
4,734,950 858,666 3,876,284
1,169,872 1,169,872
7,716,266 1,888,523 5,827,743
1,169,872 1,169,872 207,634 207,633 1 12,451,216 2,747,189 9,704,027
(36,370) (25,366) 11,004 (112,634) (93,720) 18,914 (11,621,216) (1,890,246) 9,730,970
85,000 85,000 7,250,000 7,250,000
85,000 85,000 7,250,000 7,250,000
($36,370) (25,366) $11,004 ($27,634) (8,720) $18,914 ($4,371,216) 5,359,754 $9,730,970
959,651 133,083 1,269,705
$934,285 $124,363 $6,629,459
(Continued)
REVIEW DRAFT 135 10/30/2023
Grants
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments
Use of money and properties $37,000 $50,383 $13,383
Intergovernmental $2,401,572 $1,670,887 ($730,685)
Charges for services
Other revenue 1,177 1,177
Total Revenues 37,000 50,383 13,383 2,401,572 1,672,064 (729,508)
EXPENDITURES
Current:
General government 1,984,086 543,443 1,440,643
Public safety 595,415 485,230 110,185
Public works and parks
Culture and recreation
Capital outlay 463 463
Total Expenditures 2,579,964 1,029,136 1,550,828
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 37,000 50,383 13,383 (178,392) 642,928 821,320
OTHER FINANCING SOURCES (USES)
Transfers in 11,253 11,253
Transfers out
Total Other Financing Sources (Uses) 11,253 11,253
NET CHANGE IN FUND BALANCE $37,000 50,383 $13,383 ($167,139) 654,181 $821,320
FUND BALANCES, BEGINNING OF YEAR 349,645 396,202
FUND BALANCES, END OF YEAR $400,028 $1,050,383
Development Services
FOR THE YEAR ENDED JUNE 30, 2023
SPECIAL REVENUE FUNDS
BUDGET AND ACTUAL
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
REVIEW DRAFT 136 10/30/2023
Parkland Dedication Emergency Medical Services Business Improvement
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$11,797 $11,797 $5,227,120 $5,224,387 ($2,733)
4,452 4,452 8,656 8,656
181,100 712,173 531,073
2,800,000 3,708,025 908,025
450,000 400,679 (49,321)
16,249 16,249 8,658,220 10,053,920 1,395,700
8,821,778 8,422,019 399,759
8,821,778 8,422,019 399,759
16,249 16,249 (163,558) 1,631,901 1,795,459
16,249 $16,249 ($163,558) 1,631,901 $1,795,459
343,740 832,600
$359,989 $2,464,501
(Continued)
SPECIAL REVENUE FUNDS
REVIEW DRAFT 137 10/30/2023
Low and Moderate Income Housing
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $150,000 $141,705 ($8,295)
Use of money and properties 1,960 1,960 $30,833 $30,833
Intergovernmental
Charges for services
Other revenue 8,000 8,845 845 54,407 54,407
Total Revenues 158,000 152,510 (5,490) 85,240 85,240
EXPENDITURES
Current:
General government $95,000 85,766 9,234
Public safety
Public works and parks 192,186 117,578 74,608
Culture and recreation
Capital outlay
Total Expenditures 192,186 117,578 74,608 95,000 85,766 9,234
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (34,186) 34,932 69,118 (95,000) (526) 94,474
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE ($34,186) 34,932 $69,118 ($95,000) (526) $94,474
FUND BALANCES, BEGINNING OF YEAR 140,036 1,872,570
FUND BALANCES, END OF YEAR $174,968 $1,872,044
Pt. San Pedro-Maintenance Portion
SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
REVIEW DRAFT 138 10/30/2023
SPECIAL REVENUE FUNDS
Measure A Open Space Measure G Cannabis Measure C Wildfire Prevention
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$206,806 $586,957 $380,151 $300,000 $337,028 $37,028 $1,899,260 $1,822,040 ($77,220)
5,504 5,504 9,186 9,186 4,325 4,325
1,076,257 1,076,257
(1) 8,664 8,664
206,806 592,461 385,655 300,000 346,213 46,214 1,899,260 2,911,286 1,012,026
120,325 113,339 6,986
38,731 39,320 (589) 2,292,059 2,328,057 (35,998)
15,640 (15,640)
780,000 172,258 607,742
520,000 710,466 (190,466) 36,000 36,000
1,300,000 898,364 401,636 159,056 152,659 6,397 2,328,059 2,328,057 2
(1,093,194) (305,903) 787,291 140,944 193,554 52,610 (428,799) 583,229 1,012,028
(11,069) (11,069)
(11,069) (11,069)
($1,093,194) (305,903) $787,291 $140,944 182,485 $41,541 ($428,799) 583,229 $1,012,028
780,956 968,251 803,182
$475,053 $1,150,736 $1,386,411
REVIEW DRAFT 139 10/30/2023
REVIEW DRAFT 10/30/2023
INTERNAL SERVICE FUNDS
Internal service funds account for department services and financing performed for other departments
within the same governmental jurisdiction. Funding comes from charges assessed to the departments
benefiting from the service.
Building Maintenance Fund – Established to account for construction projects and cyclical large
dollar maintenance tasks (roof, painting) completed on City owned buildings.
Vehicle Replacement Fund – Established to provide for the replacement of vehicles.
Equipment Replacement Fund – Established to provide for the replacement of computers and
equipment.
Employee Benefits Fund – This fund is utilized for the payment of retiree benefits, unemployment
insurance, accumulated leave requirements and other negotiated benefits not tied to a specific
department.
Liability Insurance Fund – Established to maintain sufficient reserves for outstanding claims. All
costs associated with liability premiums are paid from this fund.
Workers’ Compensation Fund – Established to maintain sufficient reserves for injury claims. All
costs associated with workers compensation, including safety training, wellness programs, claim
expenses and insurance premiums are paid from this fund.
Dental Insurance Fund – Set up to maintain sufficient reserves for dental claims. All costs
associated with dental claims and administrations are paid from this fund.
Employee Retirement Fund – Established to maintain sufficient reserves to fund debt service
payments on the 2010 Taxable Pension Obligation Bonds and other pension related obligations.
OPEB/Retiree Medical Fund – Established to account for activities related to the funding,
administration and procurement of retiree medical benefits.
Radio Replacement Fund – Established to meet radio system operating costs, capital acquisition and
replacement, and operating lease obligations for the Public Works, Fire, Community Development and
Police Departments. The Marin Emergency Radio Authority (MERA) is a countywide JPA that has
taken the roll in procurement and installation of a new digital radio system. This fund supports San
Rafael's portion of the MERA efforts and related contractual obligations.
Telephone Replacement Fund – Established to provide ongoing support services for telephone
equipment and usage throughout the organization.
Sewer Maintenance Fund – Established to record both the cost of providing services to the San
Rafael Sanitation District and the charges for those services.
REVIEW DRAFT 141 10/30/2023
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2023
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
ASSETS
Current Assets:
Cash and investments $4,241,953 $6,731,932 $6,490,168 $940,308 $7,638,401
Prepaid expenses 29,246
Capital assets:
Nondepreciable assets 910,869
Depreciable assets, net 5,364,636 5,562,990 1,025,717
Total Assets 10,517,458 12,294,922 7,545,131 940,308 7,638,401
LIABILITIES
Current Liabilities:
Accounts payable 1,813 3,500 205,453 31,747 4,065
Claims payable - due in one year 1,110,010
Long-term debt - due in one year 21,755
Subscription liabilities - due in one year 221,166
Non-current Liabilities:
Claims payable - due in more than one year 3,553,366
Long-term debt - due in more than one year 121,463
Subscription liabilities - due in more than one year 752,008
Total Liabilities 145,031 3,500 1,178,627 31,747 4,667,441
NET POSITION:
Net investment in capital assets 6,132,287 5,562,990 52,543
Unrestricted 4,240,140 6,728,432 6,313,961 908,561 2,970,960
Total Net Position $10,372,427 $12,291,422 $6,366,504 $908,561 $2,970,960
REVIEW DRAFT 142 10/30/2023
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total
$11,921,344 $530,675 $2,459,325 $457,513 $646,439 $236,090 $494,184 $42,788,332
29,246
910,869
11,953,343
11,921,344 530,675 2,459,325 457,513 646,439 236,090 494,184 55,681,790
1,171 3,674 11,494 55,272 494,184 812,373
1,776,620 2,886,630
21,755
221,166
9,346,702 12,900,068
121,463
752,008
11,124,493 3,674 11,494 55,272 494,184 17,715,463
11,747,820
796,851 527,001 2,459,325 446,019 646,439 180,818 26,218,507
$796,851 $527,001 $2,459,325 $446,019 $646,439 $180,818 $37,966,327
REVIEW DRAFT 143 10/30/2023
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
OPERATING REVENUES
Charges for current services $1,000,000 $1,806,860 $2,406,890 $1,268,580 $2,364,880
Other operating revenues 229,857
Total Operating Revenues 1,000,000 1,806,860 2,406,890 1,268,580 2,594,737
OPERATING EXPENSES
Personnel 877,845 265,366
Insurance premiums and claims 2,583,472
Maintenance and repairs 6,691 58,690
General and administrative 119,185 1,885,542 338,305 170,322
Depreciation expense 293,708 916,227 280,847
Total Operating Expenses 419,584 974,917 2,166,389 1,216,150 3,019,160
Operating Income (Loss) 580,416 831,943 240,501 52,430 (424,423)
NONOPERATING REVENUES (EXPENSES)
Investment income 49,870 83,100 79,683 11,024 62,198
Interest expense (59,271)
Miscellaneous revenues
Loss from disposal of capital assets (712)
Total Nonoperating
Revenues (Expenses) 49,870 83,100 19,700 11,024 62,198
Net income (loss) before contributions
and transfers 630,286 915,043 260,201 63,454 (362,225)
TRANSFERS
Transfers in 2,385,000
Transfers out (11,253) (25,013)
Net transfers (11,253) 2,359,987
Change in Net Position 630,286 915,043 248,948 63,454 1,997,762
NET POSITION, BEGINNING OF YEAR 9,742,141 11,376,379 6,117,556 845,107 973,198
NET POSITION, END OF YEAR $10,372,427 $12,291,422 $6,366,504 $908,561 $2,970,960
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
REVIEW DRAFT 144 10/30/2023
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total
$2,507,634 $465,707 $2,537,541 $713,526 $672,221 $2,616,744 $18,360,583
901,026 2,991 1,133,874
2,507,634 465,707 3,438,567 713,526 675,212 2,616,744 19,494,457
224,593 2,550,185 3,917,989
2,726,272 333,266 3,369,834 9,012,844
98,629 164,010
193,045 44,198 $2,000 401,658 582,394 95,535 3,832,184
1,490,782
3,143,910 377,464 2,000 3,369,834 401,658 681,023 2,645,720 18,417,809
(636,276) 88,243 (2,000) 68,733 311,868 (5,811) (28,976) 1,076,648
150,298 5,736 29,166 22,050 5,673 2,766 501,564
(59,271)
28,976 28,976
(712)
150,298 5,736 29,166 22,050 5,673 2,766 28,976 470,557
(485,978) 93,979 27,166 90,783 317,541 (3,045) 1,547,205
1,100,000 3,485,000
(683,750) (720,016)
416,250 2,764,984
(485,978) 93,979 443,416 90,783 317,541 (3,045) 4,312,189
1,282,829 433,022 2,015,909 355,236 328,898 183,863 33,654,138
$796,851 $527,001 $2,459,325 $446,019 $646,439 $180,818 $37,966,327
REVIEW DRAFT 145 10/30/2023
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $1,018,165 $1,806,860 $2,406,890 $1,268,580 $2,364,880
Cash payments to suppliers for goods and services (174,913) (78,428) (1,795,720) (312,093) (2,782,857)
Cash payments to employees for salaries and benefits (877,845) (265,366)
Other operating revenues 229,857
Cash Flows from Operating Activities 843,252 1,728,432 611,170 78,642 (453,486)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Miscellaneous revenues
Interfund revenues 2,385,000
Interfund payments (11,253)(25,013)
Cash Flows from Noncapital
Financing Activities (11,253)2,359,987
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Payment on note payable (21,754)
Payment on subscription liability (212,258)
Payment on subscription interest (59,271)
Acquisition and construction of capital assets (24,362) (1,439,527)
Proceeds from sale of property
Cash Flows from Investing Activities (46,116) (1,439,527) (271,529)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 49,870 83,100 79,683 11,024 62,198
Cash Flows from Investing Activities 49,870 83,100 79,683 11,024 62,198
Net increase (decrease) in cash and cash equivalents 847,006 372,005 408,071 89,666 1,968,699
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 3,394,947 6,359,927 6,082,097 850,642 5,669,702
CASH AND CASH EQUIVALENTS, END OF YEAR $4,241,953 $6,731,932 $6,490,168 $940,308 $7,638,401
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$580,416 $831,943 $240,501 $52,430 ($424,423)
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation 293,708 916,227 280,847
Net change in assets and liabilities:
Grants receivable 18,165
Prepaids (24,786)
Accounts payable (49,037) (19,738) 114,608 26,212 4,065
Claims payable (33,128)
Net Cash Provided by (Used in) Operating Activities $843,252 $1,728,432 $611,170 $78,642 ($453,486)
NON-CASH TRANSACTIONS:
Retirement of capital assets ($712)
REVIEW DRAFT 146 10/30/2023
OPEB/
Workers' Dental Employee Employee Radio Telephone Sewer
Compensation Insurance Retirement Retirement Replacement Replacement Maintenance Total
$2,507,634 $465,707 $2,537,541 $713,526 $672,221 $2,616,744 $18,378,748
(2,703,258) (381,200) ($2,000) (3,391,746) (401,658) (656,752) (2,391,274) (15,071,899)
(224,593)(1,367,804)
901,026 2,991 1,133,874
(420,217) 84,507 (2,000) 46,821 311,868 18,460 225,470 3,072,919
28,976 28,976
1,100,000 3,485,000
(683,750)(720,016)
416,250 28,976 2,793,960
(21,754)
(212,258)
(59,271)
(1,463,889)
(1,757,172)
150,298 5,736 29,166 22,050 5,673 2,766 501,564
150,298 5,736 29,166 22,050 5,673 2,766 501,564
(269,919) 90,243 443,416 68,871 317,541 21,226 254,446 4,611,271
12,191,263 440,432 2,015,909 388,642 328,898 214,864 239,738 38,177,061
$11,921,344 $530,675 $2,459,325 $457,513 $646,439 $236,090 $494,184 $42,788,332
($636,276) $88,243 ($2,000) $68,733 $311,868 ($5,811) ($28,976) $1,076,648
1,490,782
18,165
(24,786)
(2,045) (3,736)(21,912)24,271 254,446 327,134
218,104 184,976
($420,217) $84,507 ($2,000) $46,821 $311,868 $18,460 $225,470 $3,072,919
($712)
REVIEW DRAFT 147 10/30/2023
REVIEW DRAFT 10/30/2023
San Francisco Bay Trail, San Rafael
STATISTICAL SECTION
REVIEW DRAFT 10/30/2023
REVIEW DRAFT 10/30/2023
STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary
information says about the City’s overall financial health. In contrast to the financial section, the statistical section
information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and
well-being have changed over time:
1.Net Position by Component
2.Changes in Net Position
3.Fund Balances of Governmental Funds
4.Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the
property tax:
1.Assessed and Estimated Actual Value of Taxable Property
2.Property Tax Rates, All Overlapping Governments
3.Property Tax Rates, Direct & Overlapping Governments
4.Principal Property Taxpayers
5.Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of
outstanding debt and the City’s ability to issue additional debt in the future:
1.Ratio of Outstanding Debt by Type
2.Computation of Direct and Overlapping Debt
3.Computation of Legal Bonded Debt Margin
4.Revenue Bond Coverage Parking Facility
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within
which the City’s financial activities take place:
1.Demographic and Economic Statistics
2.Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the
City’s financial report relates to the services the City provides and the activities it performs:
1.Full-Time Equivalent City Government Employees by Function
2.Operating Indicators by Function/Program
3.Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial
Reports for the relevant year.
REVIEW DRAFT 151 10/30/2023
(accrual basis of accounting)
2014 (a) 2015 (a)2016 (a)2017
Governmental activities
Net investment in capital assets $190,286,275 $190,621,085 $193,707,175 $199,202,842
Restricted 37,339,141 33,389,224 31,286,725 29,225,643
Unrestricted (196,824) (82,336,534) (93,273,480) (112,913,181)
Total governmental activities net position $227,428,592 $141,673,775 $131,720,420 $115,515,304
Business-type activities
Net investment in capital assets $10,786,591 $10,744,952 $10,958,058 $10,968,642
Unrestricted 2,049,957 (938,519) (1,136,050) (871,620)
Total business-type activities net position $12,836,548 $9,806,433 $9,822,008 $10,097,022
Primary government
Net investment in capital assets $201,072,866 $201,366,037 $204,665,233 $210,171,484
Restricted 37,339,141 33,389,224 31,286,725 29,225,643
Unrestricted 1,853,133 (83,275,053) (94,409,530) (113,784,801)
Total primary government net position $240,265,140 $151,480,208 $141,542,428 $125,612,326
(a) The City adjusted certain beginning balances during fiscal years 2013-2014, 2014-2015 and 2016-2017.
Financial data shown for proceeding years were not adjusted for the presentation.
CITY OF SAN RAFAEL
NET POSITION BY COMPONENT
Last Ten Fiscal Years
($130,000)
($80,000)
($30,000)
$20,000
$70,000
$120,000
$170,000
$220,000
$270,000
$320,000
2014 (a) 2015 (a) 2016 (a) 2017 2018 2019 2020 2021 2022 2023
Th
o
u
s
a
n
d
s
Net investment in capital assets Restricted Unrestricted
REVIEW DRAFT 152 10/30/2023
□ • •
2018 2019 2020 2021 2022 2023
$217,170,376 $231,844,210 $230,737,025 $228,252,998 $246,437,706 $259,204,102
25,549,583 23,288,874 23,522,748 36,175,158 36,668,766 46,773,333
(122,577,233) (118,215,177) (116,133,437) (107,929,957) (48,883,395) (24,466,269)
$120,142,726 $136,917,907 $138,126,336 $156,498,199 $234,223,077 $281,511,166
$10,951,518 $11,023,426 $11,104,751 $11,174,601 $11,256,222 $11,454,000
(886,848) (1,180,121) (1,204,307) (2,205,300) (1,189,003) (653,194)
$10,064,670 $9,843,305 $9,900,444 $8,969,301 $10,067,219 $10,800,806
$228,121,894 $242,867,636 $241,841,776 $239,427,599 $257,693,928 $270,658,102
25,549,583 23,288,874 23,522,748 36,175,158 36,668,766 46,773,333
(123,464,081) (119,395,298) (117,337,744) (110,135,257) (50,072,398) (25,119,463)
$130,207,396 $146,761,212 $148,026,780 $165,467,500 $244,290,296 $292,311,972
REVIEW DRAFT 153 10/30/2023
2014 2015 2016 2017
Expenses
Governmental Activities:
General government $9,085,672 $9,099,858 $12,952,983 $10,996,269
Public safety 43,800,158 39,968,631 55,399,798 44,366,734
Public works and parks 22,125,336 16,893,164 22,929,289 19,845,719
Community development 3,451,244 3,128,373 4,307,269 4,242,743
Culture and recreation 11,846,818 11,198,151 15,026,680 14,131,000
Interest on long-term debt and fiscal charges 327,350 284,288 277,263 271,263
Total Governmental Activities Expenses 90,636,578 80,572,465 110,893,282 93,853,728
Business-Type Activities:
Parking services 4,125,476 4,249,597 4,762,851 4,188,152
Total Business-Type Activities Expenses 4,125,476 4,249,597 4,762,851 4,188,152
Total Primary Government Expenses $94,762,054 $84,822,062 $115,656,133 $98,041,880
Component Unit:
San Rafael Sanitation District $11,378,055 $11,375,239 $11,654,767 $11,255,194
Program Revenues
Governmental Activities:
Charges for services:
General government $2,838,940 $1,379,523 $526,495 $421,393
Public safety 6,014,034 4,966,251 4,939,658 4,264,939
Public works and parks 6,101,460 3,078,267 5,157,289 1,804,698
Community development 3,279,251 3,796,684 4,004,178 3,850,107
Culture and recreation 6,417,003 6,537,646 6,683,059 6,941,013
Operating grants and contributions 4,698,142 4,185,450 4,678,338 3,965,351
Capital grants and contributions 762,719 1,308,027 1,470,953 1,702,993
Total Government Activities Program Revenues 30,111,549 25,251,848 27,459,970 22,950,494
Business-Type Activities:
Charges for services:
Parking services 4,485,394 5,173,557 5,212,181 5,268,991
Total Business-Type Activities Program Revenues 4,485,394 5,173,557 5,212,181 5,268,991
Total Primary Government Program Revenues $34,596,943 $30,425,405 $32,672,151 $28,219,485
Component Unit:
San Rafael Sanitation District
Charges for service $13,732,496 $14,629,758 $15,414,530 $16,014,016
Operating grants and contributions 36,945
Capital grants and contributions 79,245
Total Component Unit Program Revenues $13,732,496 $14,629,758 $15,414,530 $16,130,206
Net (Expense)/Revenue
Governmental Activities ($60,525,029) ($55,320,617) ($83,433,312) ($70,903,234)
Business-Type Activities 359,918 923,960 449,330 1,080,839
Total Primary Government Net Expense ($60,165,111) ($54,396,657) ($82,983,982) ($69,822,395)
Component Unit Activities $2,354,441 $3,254,519 $3,862,215 $4,875,012
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
REVIEW DRAFT 154 10/30/2023
2018 2019 2020 2021 2022 2023
$9,835,941 $11,967,641 $15,629,601 $12,254,642 $10,458,884 $11,162,650
53,231,197 49,899,296 50,000,809 54,736,561 34,379,474 49,903,663
22,084,433 19,270,613 21,661,442 20,749,666 14,030,717 23,353,510
4,040,195 5,781,826 5,314,692 5,804,134 2,835,173 4,436,659
13,285,563 12,819,429 11,828,353 10,619,181 7,430,968 10,723,168
884,336 1,848,263 1,974,834 1,935,532 2,004,572 1,793,203
103,361,665 101,587,068 106,409,731 106,099,716 71,139,788 101,372,853
4,627,716 5,038,553 4,491,375 3,748,667 2,226,556 3,435,551
4,627,716 5,038,553 4,491,375 3,748,667 2,226,556 3,435,551
$107,989,381 $106,625,621 $110,901,106 $109,848,383 $73,366,344 $104,808,404
$12,235,868 $12,601,257 $13,853,263 $13,790,905 $12,892,687 $13,541,927
$517,542 $377,606 $394,882 $388,833 $1,039,816 $383,890
5,628,478 5,304,832 5,824,555 5,332,486 6,302,852 7,063,009
2,362,375 4,158,338 3,082,495 2,719,148 2,996,881 3,146,404
3,814,892 4,312,259 5,470,010 8,390,282 4,493,292 4,982,748
6,819,303 5,750,846 4,370,442 2,932,869 4,105,520 5,158,806
5,142,670 4,584,855 5,545,731 5,132,596 22,520,880 6,763,815
974,603 8,042,524 1,348,640 8,718,764 9,867,883 18,438,231
25,259,863 32,531,260 26,036,755 33,614,978 51,327,124 45,936,903
5,203,585 5,362,016 5,063,318 3,351,864 3,836,881 4,682,140
5,203,585 5,362,016 5,063,318 3,351,864 3,836,881 4,682,140
$30,463,448 $37,893,276 $31,100,073 $36,966,842 $55,164,005 $50,619,043
$16,829,908 $16,964,083 $16,874,361 $16,945,721 $16,458,113 $16,638,611
58,440 5,907 5,719 5,609 5,568 5,531
105,734 1,433,871 175,217 277,752 517,752 175,481
$16,994,082 $18,403,861 $17,055,297 $17,229,082 $16,981,433 $16,819,623
($78,101,802) ($69,055,808) ($80,372,976) ($72,484,738) ($19,812,664) ($55,435,950)
575,869 323,463 571,943 (396,803) 1,610,325 1,246,589
($77,525,933) ($68,732,345) ($79,801,033) ($72,881,541) ($18,202,339) ($54,189,361)
$4,758,214 $5,802,604 $3,202,034 $3,438,177 $4,088,746 $3,277,696
(Continued)
REVIEW DRAFT 155 10/30/2023
2014 2015 2016 2017
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property $18,439,619 $19,039,443 $19,998,567 $23,343,140
Sales 27,758,971 32,269,915 34,348,089 31,819,259
Paramedic 3,816,070 3,820,240 4,226,020 5,485,637
Transient occupancy 2,332,277 2,661,878 3,063,263 2,984,758
Franchise 3,260,958 3,272,390 3,418,277 3,610,824
Business license 2,588,728 2,670,071 2,824,664 2,774,803
Other 3,452,171 3,295,751 3,465,193 1,824,830
Investment earnings 184,171 216,066 300,091 210,628
Gain (loss) from sale of capital assets
Miscellaneous 1,140,743 2,254,901 1,387,315 2,448,604
Transfers 449,917 432,630 448,478 536,000
Total Government Activities 63,423,625 69,933,285 73,479,957 75,038,483
Business-Type Activities:
Investment earnings 4,375 7,008 14,723 10,810
Gain (loss) from sale of capital assets
Transfers (449,917)(432,630)(448,478)(536,000)
Total Business-Type Activities (445,542)(425,622)(433,755)(525,190)
Total Primary Government $62,978,083 $69,507,663 $73,046,202 $74,513,293
Component Unit:
San Rafael Sanitation District
Property Taxes $1,345,018 $1,319,852 $1,367,172 $1,528,047
Investment earnings 151,729 171,804 46,225 97,090
Miscellaneous
Aid from other governmental agencies 22,125 35,090
Total Component Unit $1,518,872 $1,526,746 $1,413,397 $1,625,137
Special Item
Governmental Activities $4,462,815
Component Unit Activities ($4,462,815)
Change in Net Position
Governmental Activities $2,898,596 $19,075,483 ($9,953,355) $4,135,249
Business-Type Activities (85,624)498,338 15,575 555,649
Total Primary Government $2,812,972 $19,573,821 ($9,937,780) $4,690,898
Change in Net Position
Component Unit Activities $3,873,313 $318,450 $5,275,612 $6,500,149
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
REVIEW DRAFT 156 10/30/2023
2018 2019 2020 2021 2022 2023
$24,627,373 $25,903,240 $26,491,505 $30,993,516 $32,324,129 $33,023,030
34,119,502 35,626,646 33,784,770 39,599,113 44,110,471 45,632,867
4,923,148 4,934,584 4,923,092 5,153,448 5,109,836 5,224,387
3,115,151 3,203,499 2,410,745 1,797,578 2,976,234 3,396,479
3,726,841 3,627,254 4,029,050 3,973,806 4,209,979 4,424,917
2,790,212 2,788,496 2,824,722 2,575,341 2,645,636 2,583,546
2,245,882 1,783,170 2,152,617 2,996,950 3,108,543 2,975,282
556,745 1,450,434 1,907,591 388,645 (1,424,183) 1,708,860
26,784 989,991
5,991,713 5,904,968 2,470,926 2,813,015 2,965,697 3,233,349
632,657 608,698 586,387 538,405 521,209 521,322
82,729,224 85,830,989 81,581,405 90,856,601 97,537,542 102,724,039
24,436 63,870 71,583 4,065 8,802 8,320
(632,657)(608,698)(586,387)(538,405)(521,209)(521,322)
(608,221)(544,828)(514,804)(534,340)(512,407)(513,002)
$82,121,003 $85,286,161 $81,066,601 $90,322,261 $97,025,135 $102,211,037
$1,620,584 $1,727,221 $1,833,137 $1,888,197 $2,086,682 $2,129,197
234,379 519,793 876,369 48,614 (406,535) 1,328,202
10,690 7,768 489 11,759
$1,865,653 $2,254,782 $2,709,995 $1,936,811 $1,680,147 $3,469,158
$4,627,422 $16,775,181 $1,208,429 $18,371,863 $77,724,878 $47,288,089
(32,352)(221,365)57,139 (931,143) 1,097,918 733,587
$4,595,070 $16,553,816 $1,265,568 $17,440,720 $78,822,796 $48,021,676
$6,623,867 $8,057,386 $5,912,029 $5,374,988 $5,768,893 $6,746,854
REVIEW DRAFT 157 10/30/2023
2014 (b)2015 (b) 2016 (b)2017
General Fund
Nonspendable $503,338 $399,299 $476,316 $508,446
Restricted
Committed
Assigned 6,866,149 12,374,002 16,440,910 14,900,945
Unassigned 1,588,500 1,772,577 1,295,041
Total General Fund $7,369,487 $14,361,801 $18,689,803 $16,704,432
All Other Governmental Funds
Nonspendable $8,719 $2,359 $9,449
Restricted 30,185,064 31,742,184 27,552,245 $25,812,405
Committed 2,185,825 931,871 3,799,421 3,491,708
Assigned 4,959,533 712,810 119,183 115,103
Unassigned
Total all other governmental funds $37,339,141 $33,389,224 $31,480,298 $29,419,216
(a) The change in total fund balance for the General Fund and other governmental funds
is explained in Management's Discussion and Analysis.
(b) The City adjusted certain beginning balances during fiscal years 2013-2014, 2014-2015 and 2015-2016.
Financial data shown for preceding years were not adjusted for the presentation.
CITY SAN RAFAEL
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
($5,000)
$15,000
$35,000
$55,000
$75,000
$95,000
2014
(b)
2015
(b)
2016
(b)
2017 2018 2019 2020 2021 2022 2023
Th
o
u
s
a
n
d
s
Total Fund Balance
158
•
-
• ,.
-,,, -,. ,. • ,. • -,,,
-,,,
-
,
□
2018 2019 2020 2021 2022 2023 (a)
$1,008,234 $37,271 $7,540 $377,861 $95,279 $78,057
8,321,000 9,415,000 9,753,000
11,214,720 11,391,084 9,799,140 7,226,153 24,270,840 17,272,274
1,104,216 920,885 664,667
$12,222,954 $12,532,571 $9,806,680 $16,845,899 $33,781,119 $27,767,998
$302,366 $27,627 $7,813 $89,761 $182,890
73,489,688 53,260,504 34,288,302 $36,043,515 36,443,519 46,449,334
1,754,983 1,901,271 1,884,153 1,831,036 1,514,355 4,008,844
115,942 118,139 120,920 116,842 117,755 119,248
(11,118)
$75,662,979 $55,307,541 $36,290,070 $37,991,393 $38,165,390 $50,760,316
159
2013 2014 2015 2016
Revenues
Taxes and special assessments $51,549,306 $56,686,142 $61,804,228 $65,866,218
Licenses and permits 1,929,387 1,934,755 2,456,820 2,588,411
Fines and forfeitures 734,005 669,553 556,076 435,829
Use of money and properties 325,043 363,089 444,757 460,206
Intergovernmental 11,869,889 11,953,308 13,233,503 13,685,003
Charges for services 23,575,374 19,949,333 15,346,794 14,366,744
Other revenue 4,092,411 2,045,407 1,777,003 3,208,749
Total Revenues 94,075,415 93,601,587 95,619,181 100,611,160
Expenditures
Current:
General government 10,529,480 8,678,833 10,203,687 11,349,079
Public safety 41,377,062 41,900,762 43,954,515 47,071,166
Public works and parks 12,002,448 13,697,957 12,758,643 14,390,699
Community development 2,961,275 3,296,375 3,416,859 3,670,108
Culture and recreation 10,591,057 11,106,367 11,616,777 12,048,104
Capital outlay 4,009,454 2,154,900 4,498,924 4,813,757
Capital improvement/special projects 5,284,720 7,168,776 2,186,986 4,826,576
Debt service:
Principal 208,642 75,172 75,172
Interest and fiscal charges 283,805 327,350 284,288 277,263
Total Expenditures 87,039,301 88,539,962 88,995,851 98,521,924
Excess (deficiency) of revenues over
(under) expenditures 7,036,114 5,061,625 6,623,330 2,089,236
Other Financing Sources (Uses)
Issuance of debt
Proceeds from PG&E loans 568,481
Proceeds from sale of capital assets
Transfers in 8,425,474 3,655,302 4,348,149 7,533,364
Transfers (out)(6,711,657)(3,053,865)(3,051,499)(6,582,555)
Total other financing sources (uses)1,713,817 1,169,918 1,296,650 950,809
Extraordinary Item
Transfer to Successor Agency (2,352,584)
Net Change in fund balances $6,397,347 $6,231,543 $7,919,980 $3,040,045
Debt service as a percentage of
noncapital expenditures 0.4%0.7%0.4%0.4%
CITY OF SAN RAFAEL
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
REVIEW DRAFT 160 10/30/2023
2017 2018 2019 2020 2021 2022 2023
$71,166,891 $74,893,789 $77,101,185 $76,410,697 $86,347,728 $93,604,982 $96,373,395
2,559,841 2,718,166 2,661,500 3,047,144 3,000,666 3,077,355 3,002,122
400,283 384,268 337,680 350,388 219,030 296,300 228,966
349,349 654,531 1,583,060 1,537,869 667,104 (1,597,714)1,223,028
8,063,156 8,878,974 15,602,264 9,287,181 16,859,749 34,239,157 28,590,886
13,425,161 14,660,094 15,166,876 13,834,843 15,065,363 13,315,014 15,830,095
1,842,053 5,219,414 5,158,042 2,309,226 1,875,299 4,199,820 2,322,859
97,806,734 107,409,236 117,610,607 106,777,348 124,034,939 147,134,914 147,571,351
10,557,416 10,010,100 12,553,499 16,689,526 12,426,899 17,716,666 13,858,624
49,018,153 51,805,708 51,678,876 50,071,531 54,363,872 58,397,721 58,673,878
16,752,961 17,647,312 15,617,622 17,453,823 15,110,972 16,495,547 19,535,588
3,759,564 4,051,224 4,988,260 5,276,887 6,270,129 5,736,213 5,190,246
12,646,728 12,823,771 12,468,008 11,179,410 9,700,739 11,319,546 12,664,282
2,100,926 22,815,967 38,701,047 25,984,748 13,635,066 17,345,454 23,536,840
7,403,249
175,172 280,172 495,172 618,316 2,563,711 2,829,057 3,044,551
271,263 1,005,636 2,356,207 2,482,778 2,443,476 2,512,515 2,241,875
102,685,432 120,439,890 138,858,691 129,757,019 116,514,864 132,352,719 138,745,884
(4,878,698)(13,030,654)(21,248,084)(22,979,671)7,520,075 14,782,195 8,825,467
46,565,800 23,999
1,000,000
9,287,007 68,351,964 15,482,297 13,797,526 7,549,590 6,441,764 14,576,818
(8,454,762)(68,373,222)(14,280,034)(12,585,216)(6,329,123)(5,114,742)(16,820,480)
832,245 46,544,542 1,202,263 1,236,309 1,220,467 2,327,022 (2,243,662)
($4,046,453)$33,513,888 ($20,045,821) ($21,743,362)$8,740,542 $17,109,217 $6,581,805
0.5%1.3%2.8%3.0%4.9%4.6%4.6%
REVIEW DRAFT 161 10/30/2023
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct
Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b)
2014 7,558,708,224$ 2,009,718,415$ 245,674,195$ 130,594,237$ 9,944,695,071$ 402,261,887$ 10,346,956,958$ 10,346,956,958$ 0.11985%
2015 7,991,224,952 2,120,065,908 249,864,918 115,675,852 10,476,831,630 417,217,272 10,894,048,902 10,894,048,902 0.11657%
2016 8,511,358,216 2,221,843,976 263,830,302 108,982,883 11,106,015,377 400,942,059 11,506,957,436 11,506,957,436 0.11672%
2017 9,025,896,811 2,390,814,514 267,468,956 135,689,202 11,819,869,483 423,545,667 12,243,415,150 12,243,415,150 0.11693%
2018 9,522,645,933 2,532,439,852 276,751,912 128,305,868 12,460,143,565 417,902,554 12,878,046,119 12,878,046,119 0.11709%
2019 10,042,494,232 2,681,917,170 285,601,803 107,472,477 13,117,485,682 409,129,431 13,526,615,113 13,526,615,113 0.11742%
2020 10,545,909,554 2,850,424,603 293,144,677 127,151,762 13,816,630,596 442,888,708 14,259,519,304 14,259,519,304 0.11724%
2021 11,011,781,157 2,956,073,592 305,080,963 143,953,920 14,416,889,632 460,690,899 14,877,580,531 14,877,580,531 0.11734%
2022 11,516,548,822 3,109,589,216 311,491,969 138,527,146 15,076,157,153 463,320,122 15,539,477,275 15,539,477,275 0.11734%
2023 12,306,902,659 3,227,380,341 332,424,829 156,067,190 16,022,775,019 492,746,700 16,515,521,719 16,515,521,719 0.11746%
(a)
(b)
Data Source: Marin County Assessor 2012/13 - 2021/22 Combined Tax Rolls
The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These
values are considered to be full market values.
California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate
area.
CITY OF SAN RAFAEL
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
o
n
s
Unsecured Property Secured Property
REVIEW DRAFT 162 10/30/2023
Fiscal School Misc. Special
Year City County (1)Districts Districts Total
2014 0.154 0.295 0.7890 0.0461 1.2838 0.11985%
2015 0.154 0.295 0.7651 0.0461 1.2599 0.11657%
2016 0.154 0.295 0.7846 0.0695 1.3028 0.11672%
2017 0.154 0.295 0.8251 0.0553 1.3291 0.11693%
2018 0.154 0.295 0.8127 0.0661 1.3275 0.11709%
2019 0.154 0.295 0.8495 0.0650 1.3635 0.11742%
2020 0.154 0.295 0.8289 0.0635 1.3414 0.11724%
2021 0.154 0.295 0.8221 0.0678 1.3389 0.11734%
2022 0.154 0.295 0.7995 0.0678 1.3160 0.11734%
2023 0.154 0.295 0.7995 0.0678 1.3160 0.11746%
Notes:
(1) Like other cities, San Rafael includes several property tax rate areas with different rates. A mean average is indicated.
Data Source: Marin County Assessors Office 2013/14 - 2022/23 Tax Rate Tables
CITY OF SAN RAFAEL
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Total
Direct Rate
REVIEW DRAFT 163 10/30/2023
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Dixie School Bonds 2000 N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.02920
Marin Community College Bonds 0.02040 0.01800 0.01650 0.01420 0.03380 0.03390 0.02690 0.02650 0.02750 0.02580
Marin Healthcare Bond 0.00000 0.00000 0.02350 0.00930 0.02010 0.01900 0.01750 0.02180 0.02180 0.02070
Miller Creek School Bonds 0.01500 0.01470 0.04170 0.03830 0.02090 0.03450 0.03280 0.03030 0.01950 0.01830
Ross Elementary School 0.06570 0.06030 0.06150 0.06030 0.06190 0.06180 0.05710 0.05800 0.05760 0.05500
Ross Valley School Bonds 0.05960 0.05700 0.05550 0.05370 0.05680 0.05390 0.05270 0.05190 0.04870 0.05260
San Rafael Elementary Bonds 0.03320 0.02620 0.02570 0.05350 0.05030 0.07290 0.07050 0.06950 0.07400 0.06860
San Rafael High Bonds 0.05130 0.04850 0.04710 0.07100 0.05680 0.06170 0.06000 0.05830 0.04630 0.05030
Tamalpais Union High School 0.03860 0.03520 0.03130 0.02880 0.02690 0.02580 0.02390 0.02260 0.02060 0.01950
Total Direct & Overlapping Tax Rates 1.28380 1.25990 1.30280 1.32910 1.32750 1.36350 1.34140 1.33890 1.31600 1.34000
City's Share of 1% Levy Per Prop 13 0.12306 0.12233 0.12233 0.12233 0.12233 0.12232 0.12232 0.12231 0.12231 0.12231
Total Direct Rate 0.11985 0.11657 0.11672 0.11693 0.11709 0.11742 0.11724 0.11734 0.11734 0.11746
Notes:
Data Source: Marin County Assessors Office 2013/14 - 2022/23 Tax Rate Tables
(1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies
for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed
property values for the payment of any voter approved bonds.
CITY OF SAN RAFAEL
PROPERTY TAX RATES
DIRECT & OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS (RATE PER $100 OF ASSESSED VALUE)
REVIEW DRAFT 164 10/30/2023
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
California Corporate Center ACQ LLC 288,969,400$ 1.85%
MGP XI Northgate LLC 227,517,623 1.44%
Kaiser 143,855,630 0.92%
NCP Multifamily LLC 120,334,902 0.74%
Pur San Rafael LLC 108,059,080 0.68%
Bre Properties, Inc 68,466,907 0.43%
South Valley Apartments LLC 58,002,597 0.37%
NCP Commercial LLC 56,338,212 0.35%
North Bay 4040 TT LLC 55,312,563 0.34% 43,244,721 0.42%
Regency Center II Assoc LP 50,872,364 0.32% 43,570,118 0.42%
Bay Apartment Communities Inc 41,487,664 0.40%
Northgate Mall Associates 136,409,102 1.32%
SR Corporation Center AC 108,029,829 1.04%
33 North Associates LLC 37,701,909 0.35%
Autodesk 36,232,837 0.36%
Sutter Health 50,624,561 0.49%
Robert Dickson Trust 46,092,851 0.45%
Marin Sanitary Service 38,913,644 0.35%
Subtotal 1,177,729,278$ 7.13% 582,307,236$ 5.63%
Total Net Assessed Valuation:
Fiscal Year 2022-2023 16,516,184,701$
Fiscal Year 2013-2014 10,346,956,958$
FY 2022-2023 FY 2013-2014
CURRENT FY 2022/23 AND FY 2013/2014
PRINCIPAL PROPERTY TAX PAYERS
CITY OF SAN RAFAEL
REVIEW DRAFT 165 10/30/2023
Delinquent taxes
Fiscal as a Percent of
Year Rate Levies Allocations Collections Apportionments Delinquencies Allocations
2014 1.00 (2)22,001,357$ (2)22,001,357$ (2)0.0%
2015 1.00 (2)22,376,457 (2)22,376,457 (2)0.0%
2016 1.00 (2)23,636,093 (2)23,636,093 (2)0.0%
2017 1.00 (2)25,173,651 (2)25,173,651 (2)0.0%
2018 1.00 (2)26,088,961 (2)26,088,961 (2)0.0%
2019 1.00 (2)27,718,712 (2)27,718,712 (2)0.0%
2020 1.00 (2)28,709,606 (2)28,709,606 (2)0.0%
2021 1.00 (2)29,762,184 (2)29,762,184 (2)0.0%
2022 1.00 (2)31,129,632 (2)31,129,632 (2)0.0%
2023 1.00 (2)29,914,556 (2)29,914,556 (2)0.0%
Notes:
(1)Includes deductions for County property tax administration.
(2)Information not applicable. All general purpose property taxes are levied by the county and allocated
to other governmental entities.
CITY OF SAN RAFAEL
PROPERTY TAX LEVIES AND COLLECTIONS (1)
LAST TEN FISCAL YEARS
$6
$9
$12
$16
$19
$22
$25
$28
$31
$35
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
o
n
s
Allocations Apportionments
REVIEW DRAFT 166 10/30/2023
___.---,,
-,, ,,
--...,
--
Pension Lease
Fiscal Note Obligation Revenue
Year Payable Bonds Bonds Total
2014 528,839$ 4,490,000$ 5,018,839$
2015 453,667 4,490,000 4,943,667
2016 378,495 4,490,000 4,868,495
2017 303,323 4,390,000 4,693,323
2018 1,308,951 4,185,000 53,612,097$ 59,106,048
2019 1,233,779 3,765,000 53,104,153 58,102,932
2020 1,084,462 3,320,000 52,596,209 57,000,671
2021 905,751 2,845,000 50,178,265 53,929,016
2022 890,555 2,340,000 47,600,321 50,830,876
2023 687,158 1,805,000 44,852,378 47,344,536
Parking Total Percentage
Fiscal Services Note Primary of Personal Per
Year Bonds Payable Total Government Income (a) Capita (a)
2014 6,186,403$ 61,836$6,248,239$ 11,267,078$ 0.43% 191.41
2015 5,942,128 55,020 5,997,148 10,940,815 0.41% 180.60
2016 5,692,853 48,204 5,741,057 10,609,552 0.38% 174.38
2017 5,433,577 41,388 5,474,965 10,168,288 0.35% 167.65
2018 5,164,303 34,572 5,198,875 64,304,923 2.04% 1,070.93
2019 4,890,027 27,755 4,917,782 63,020,714 2.00% 1,053.73
2020 4,605,753 20,939 4,626,692 61,627,363 1.87% 1,044.25
2021 4,316,478 14,123 4,330,601 58,259,617 1.72% 962.01
2022 4,017,203 7,307 4,024,510 54,855,386 1.45% 919.14
2023 3,707,928 489 3,708,417 54,539,293 N/A N/A
In August 2012, the series 2003 parking services bonds were refunded with series 2012 refunding bonds.
Data Sources:City of San Rafael
State of California, Department of Finance (population)
U.S. Department of commerce, Bureau of the Census (income)
(a) See Schedule of Demographic and Economic Statistics for personal income and population data.
Governmental Activities
Business-Type Activities
LAST TEN FISCAL YEARS
RATIO OF OUTSTANDING DEBT BY TYPE
CITY OF SAN RAFAEL
$-
$10
$20
$30
$40
$50
$60
$70
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
o
n
s
Total Governmental Total Business
REVIEW DRAFT 167 10/30/2023
a •
2022-23 Assessed Valuation:16,515,650,963
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2023 % Applicable (1)Debt 6/30/2023
Marin Community College District 569,640,000$ 17.304% 98,570,506$
San Rafael High School District 215,795,091 79.160% 170,823,394
Tamalpais Union High School District 74,340,000 0.066%49,064
Miller Creek School District (Formerly Dixie School District)27,642,000 67.204% 18,576,530
Ross School District 15,398,683 1.255% 193,253
Ross Valley School District 39,643,251 0.010%3,964
San Rafael School District 159,776,681 84.625% 135,211,016
Marin Healthcare District 464,745,000 20.708% 96,239,395
Marin Emergency Radio Authority Parcel Tax Obligations 26,295,000 17.280% 4,543,776
City of San Rafael 1915 Act Bonds 1,075,200 100.000% 1,075,200
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 525,286,098$
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Marin County Certificates of Participation 73,930,000$ 17.280% 12,775,104$
Marin County Pension Obligation Bonds 52,050,000 17.280% 8,994,240
Marin County Transit District General Fund Obligations -
Marin Municipal Water District General Fund Obligations -
Marin Community College District Certification of Participation 11,268,897 17.304% 1,949,970
San Rafael School District General Fund Obligations 2,630,000 84.625% 2,225,638
City of San Rafael General Fund Obligations 43,667,157 100.000% 43,667,157 (2)
City of San Rafael Pension Obligations 1,805,000 100.000% 1,805,000
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 71,417,109
Less: City of San Rafael obligations supported by enterprise revenues 3,715,000
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 67,702,109$
TOTAL GROSS DIRECT DEBT 45,472,157
TOTAL NET DIRECT DEBT 41,757,157
TOTAL OVERLAPPING DEBT 551,231,050
GROSS COMBINED TOTAL DEBT 596,703,207 (3)
NET COMBINED TOTAL DEBT 592,988,207
(2) Includes $687,157 PG&E notes.
Ratios to 2022-23 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 3.18%
Total Gross Direct Debt ($45,472,157)0.28%
Total Net Direct Debt ($41,757,157)0.25%
Gross Combined Total Debt 3.61%
Net Combined Total Debt 3.59%
Ratios to Redevelopment Incremental Valuation ($3,311,940,202)
Total Overlapping Tax Increment Debt 0.06%
Data Source: Avenu Insights & Analytics, California Municipal Statistics, Inc.
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable
percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries
of the city divided by the district's total taxable assessed value.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease
June 30, 2023
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
CITY OF SAN RAFAEL
REVIEW DRAFT 168 10/30/2023
ASSESSED VALUATION:16,515,650,963$
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)619,336,911
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:50,830,876
LEGAL BONDED DEBT MARGIN 568,506,035$
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2014 388,010,886$ 5,018,839$ 382,992,047$ 1.31%
2015 408,526,834 4,943,667 403,583,167 1.22%
2016 431,510,904 4,868,495 426,642,409 1.14%
2017 459,128,068 4,693,323 454,434,745 1.03%
2018 482,926,729 59,106,048 423,820,681 13.95%
2019 507,248,067 58,102,932 449,145,135 12.94%
2020 534,731,974 57,000,671 477,731,303 11.93%
2021 557,909,270 53,929,016 503,980,254 10.70%
2022 582,730,398 50,830,876 531,899,522 9.56%
2023 619,332,064 47,344,536 571,987,528 8.28%
NOTE: (a)
Source: City of San Rafael's Finance Department
CITY OF SAN RAFAEL
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2023
California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in
basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is
one-fourth of that value.
REVIEW DRAFT 169 10/30/2023
CITY OF SAN RAFAEL
REVENUE BOND COVERAGE
PARKING FACILITY
LAST TEN FISCAL YEARS
Debt Service Requirements
Net Revenue
Fiscal Gross Operating Available for
Year Revenue (1) Expenses (2) Debt Service Principal Interest Total Coverage
2014 4,489,769$ 3,716,552$ 773,217$ 245,000$ 210,063$ 455,063$ 1.70
2015 5,180,554 4,031,161 1,149,393 245,000 205,163 450,163 2.55
2016 5,226,904 3,739,321 1,487,583 250,000 199,613 449,613 3.31
2017 5,279,801 2,425,281 2,854,520 260,000 192,038 452,038 6.31
2018 5,219,721 4,320,695 899,026 270,000 184,163 454,163 1.98
2019 5,425,883 4,283,754 1,142,130 275,000 176,025 451,025 2.53
2020 5,134,901 4,072,433 1,062,468 284,999 167,700 452,699 2.35
2021 3,355,929 3,332,327 23,602 290,000 161,288 451,288 0.05
2022 3,845,683 1,851,746 1,993,937 300,000 150,338 450,338 4.43
2023 4,690,455 3,071,480 1,618,974 310,000 143,588 453,588 3.57
Notes: On March 26, 2003, the City Financing Authority issued lease revenue bonds for the design and construction of a new parking facility.
On August 12, 2012, the City Financing Authority refunded the series 2003 lease revenue bonds with series 2012 lease
revenue refunding bonds to take advantage of lower interest rates.
(1) Includes all Parking Facility Operating Revenues and Non-operating Interest Revenue
(2)Includes all Parking Facility Operating Expenses less Depreciation and Interest
Data Source: San Rafael Finance Department Revenue and Expenditure Status Reports
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Coverage
REVIEW DRAFT 170 10/30/2023
-
Marin City Personal Per Capita Average
Calendar City County Population Income (2)Personal Unemployment
Year Population (1)Population % of County (in thousands) Income (2) Rate (3)
2013 58,566 254,007 23.06% 2,538,895$ 43,351$ 4.70%
2014 58,863 255,846 23.01% 2,621,228 44,531 4.50%
2015 60,582 258,972 23.39% 2,699,436 44,558 3.70%
2016 60,842 262,274 23.20% 2,817,497 46,308 3.40%
2017 60,651 263,604 23.01%2,943,227 48,374
3.30%
2018 60,046 263,886 22.75%3,152,985 52,509
2.30%
2019 59,807 262,879 22.75%3,156,708 52,781 2.20%
2020 59,016 257,774 22.89%3,301,286 55,938 6.70%
2021 60,560 257,135 23.55% 3,390,278 55,982 4.40%
2022 59,681 256,018 23.31% 3,789,444 63,494 2.50%
Source: (1) State of California, Department of Finance - Demographic Research Unit. The data represents the City's population as of
January 1, of each year.
(2) US Censue Bureau, most recent American Community Survey
(3)Unemployment Data: California Employment Development Department
CITY OF SAN RAFAEL
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
0%
5%
10%
15%
20%
25%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City Population as a % of County
Population
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Personal Income (in thousands)
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Per Capita Personal Income
0%
1%
2%
3%
4%
5%
6%
7%
8%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Average Citywide Unemployment Rate
REVIEW DRAFT 171 10/30/2023
I
2022
Employer #(A) #(A) #(A) #(A)
Kaiser Permanente 2,339 1.83% 2,339 1.82% 2,059 1.64% 2,014 6.22%
BioMarin Pharmaceutical Inc.950 0.74% 950 0.74% 950 0.76% 950 2.93%
San Rafael Elementary/High Schools Dist(s 700 0.55% 700 0.55% 700 0.56% 700 2.16%
City of San Rafael 420 0.33% 412 0.32% 405 0.32% 410 1.27%
Dominican University of California 394 0.31% 394 0.31% 394 0.31% 421 1.30%
Buckelew Programs 0.00%0.00%0.00% 103 0.32%
Lifehouse 0.00%0.00%0.00% 100 0.31%
EO Poducts 0.00%0.00% 108 0.09% 150 0.46%
Toyota Marin 0.00%0.00%0.00% 141 0.44%
Ghilotti Bros., Inc.298 0.23% 298 0.23% 298 0.24%
Community Action Marin 200 0.16% 200 0.16% 270 0.21%
Equator Coffees, LLC 95 0.07% 95 0.07% 88 0.07%
Totals 5,396 4.21% 5,388 4.20% 5,272 4.20% 4,989 15.40%
#Number of FTE employees in Marin locations
(A)Percentage of total employment
Note: From the EDD website, it shows that the Total Average 2022 Employment in the City of San Rafael was 128,162 of which it is used as the denominator
for the 2022 percentages are calculated.
Data Sources: State of California, Employment Development Department, Labor Market Information Division & North Bay Business Journal
(Annual Book of Lists)
FISCAL YEAR 2022-2023
PRINCIPAL EMPLOYERS
LAST TEN CALENDAR YEARS
CITY OF SAN RAFAEL
20192021 2020
REVIEW DRAFT 172 10/30/2023
# (A) # (A) # (A) # (A) # (A) # (A)
2,092 6.62% 2,061 6.52% 662 2.02% 1,575 4.82% 1,637 5.26% 1,756 5.74%
700 2.22% 700 2.22% 650 1.98% 650 1.99% 600 1.93% 600 1.96%
410 1.30% 454 1.44% 577 1.76% 581 1.78% 666 2.14% 643 2.10%
319 1.01% 456 1.44% 485 1.48% 422 1.29% 354 1.14% 347 1.13%
106 0.34% 240 0.76% 186 0.57%
4,508 14.27% 5,650 17.88% 5,314 16.20% 5,620 17.19% 6,025 19.37% 6,079 19.87%
2015201620172018 2014 2013
REVIEW DRAFT 173 10/30/2023
REVIEW DRAFT 10/30/2023
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
General Government 55.11 58.11 60.61 62.11 60.11 63.11 62.11 61.41 63.69 60.69
Public Safety 168.00 171.75 175.75 176.55 175.35 175.65 175.30 181.50 185.00 185.00
Public Works and Parks 61.00 62.00 62.00 63.00 66.67 66.00 68.00 69.00 70.00 70.00
Community Development 17.80 17.80 19.80 20.00 21.00 22.00 21.75 21.75 23.00 24.00
Culture and Recreation 83.66 84.23 84.25 84.35 87.35 85.82 78.07 78.07 78.07 83.07
Total 385.57 393.89 402.41 406.01 410.48 412.58 405.23 411.73 419.76 422.76
Data Source: City of San Rafael's Finance Department
LAST TEN FISCAL YEARS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
CITY OF SAN RAFAEL
0
50
100
150
200
250
300
350
400
450
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
FT
E
'
s
General Government Public Safety Public Works and Parks Community Development Culture and Recreation
REVIEW DRAFT 175 10/30/2023
a • • • •
2014 2015 2016 2017
Function/Program
Public safety:
Fire:
Inspection permit issued 261 282 198 233
Police:
Police calls for service 51,261 55,805 57,026 53,567
Law violations:
Part I crimes 2,289 2,533 2,523 2,392
Physical arrests (adult and juvenile)3,227 3,450 3,453 2,526
Traffic violations 4,498 4,168 3,252 3,341
Parking violations 38,814 36,398 34,803 36,169
Public works
Street resurfacing (miles) (Eng Div)9.00 6.40 6.76 2.32
Potholes repaired N/A N/A N/A N/A
Asphalt used for street repairs (tons)10,700 11,000 7,195 5,800
Culture and recreation:
Recreation class participants 9,857 10,023 12,725 13,493
Recreation Facility Rentals
Childcare School-Age program participants
Library:
Items in collection 168,620 127,763 227,890 117,354
Total items borrowed 478,960 443,639 469,790 327,297
Note: N/A denotes information not available.
CITY OF SAN RAFAEL
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
REVIEW DRAFT 176 10/30/2023
2018 2019 2020 2021 2022 2023
186 123 167 207 195 170
51,013 47,919 47,968 43,649 42,901 42,693
2,326 1,893 2,988 2,546 2,015 2,024
2,019 1,923 2,527 1,893 1,945 1,769
2,758 2,944 2,342 2,161 1,710 1,734
36,208 40,407 28,029 24,099 30,178 35,399
2.50 4.30 14.30 5.00 11.70 21
N/A N/A 967 1,368 1,024 1,335
4,730 7,200 5,885 3,650 5,100 3,411
12,842 N/A N/A N/A N/A
5,146 3,875 1,550 1,962 7,001
7,592 6,270 2,132 3,675 2,660
115,812 123,432 140,610 103,399 95,687 97,117
324,452 356,301 199,903 113,385 169,378 185,800
REVIEW DRAFT 177 10/30/2023
2014 2015 2016 2017
Function/Program
Public safety:
Fire stations 6 6 6 6
Police stations 1 1 1 1
Police Fleet
Public works
Miles of streets 173 173 173 173
Street lights 4,435 4,435 4,435 4,435
Parking District lights
Traffic Signals 89 89 89 89
Culture and recreation:
Community services:
City parks 20 20 20 20
City parks acreage 42 424242
Playgrounds 14 14 14 14
City trails 20 20 20 20
Community gardens 1 1 1 1
Cultural Art Centers
Community centers 4 4 4 4
Senior centers 0 0 0 0
Sports centers 0 0 0 0
Performing arts centers 0 0 0 0
Swimming pools 1 1 1 1
Tennis courts 10 10 10 10
Basketball Courts 5 5 5 5
Baseball/softball diamonds 5 5 5 5
Soccer/football fields 2 2 2 2
Library:
City Libraries 2 2 2 2
Wastewater:
Miles of sanitary sewers 145 145 145 145
Data Source: City of San Rafael's Finance Department
CITY OF SAN RAFAEL
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
REVIEW DRAFT 178 10/30/2023
2018 2019 2020 2021 2022 2023
6666 66
1111 11
173 173 173 173 173 173
4,435 4,435 4,435 4,435 4,448 4,448
89 89 90 90 90 90
20 20 24 24 24 24
42 42 99 99 99 99
14 14 14 14 14 14
20 20 20 20 20 20
1122 22
11 11
4433 33
0000 00
0000 00
0000 00
1111 11
10 10 10 10 10 10
5566 66
5555 55
2222 22
2222 22
145 145 145 145 145 145
REVIEW DRAFT 179 10/30/2023
REVIEW DRAFT 10/30/2023
REVIEW DRAFT 10/30/2023 11:17 AM
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED JUNE 30, 2023
REVIEW DRAFT 10/30/2023 11:17 AM
This Page Left Intentionally Blank
REVIEW DRAFT 10/30/2023 11:17 AM
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2023
Table of Contents
Page
Memorandum on Internal Control .................................................................................................. 1
Schedule of Significant Deficiency ......................................................................................... 3
Schedule of Other Matters ...................................................................................................... 5
Status of Prior Year Significant Deficiencies ....................................................................... 11
Schedule of Prior Year Other Matters .................................................................................. 13
REVIEW DRAFT 10/30/2023 11:17 AM
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REVIEW DRAFT 10/30/2023 11:17 AM
MEMORANDUM ON INTERNAL CONTROL
To the City Council of
the City of San Rafael, California
In planning and performing our audit of the basic financial statements of the City of San Rafael (City) as
of and for the year ended June 30, 2023, in accordance with auditing standards generally accepted in the
United States of America, we considered the City’s internal control over financial reporting (internal
control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose
of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion
on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the
effectiveness of the City’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and therefore material weaknesses or significant deficiencies may exist that were
not identified. In addition, because of inherent limitations in internal control, including the possibility of
management override of controls, misstatements due to error or fraud may occur and not be detected by
such controls. However, as discussed below, we identified certain deficiencies in internal control that we
consider to be significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. We
did not identify any deficiencies in internal control that we consider to be material weaknesses.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance. We consider the deficiency in internal control included on the Schedule of Significant
Deficiency to be a significant deficiency.
Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we
believe are opportunities for strengthening internal controls and operating efficiency.
Government Auditing Standards require the auditor to perform limited procedures on the City’s response
to the findings identified in our audit and described in the accompanying Schedule of Significant
Deficiency and Schedule of Other Matters. The City’s response was not subjected to the other auditing
procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the
response.
10/30/2023
REVIEW DRAFT 11:17 AM
1
Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
E maze@mazeassociates.com
w mazeassociates.com
REVIEW DRAFT 10/30/2023 11:17 AM
This communication is intended solely for the information and use of management, City Council, others
within the organization, and agencies and pass-through entities requiring compliance with Government
Auditing Standards, and is not intended to be and should not be used by anyone other than these specified
parties.
Pleasant Hill, California
DATE
2
-
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF SIGNIFICANT DEFICIENCY
REVIEW DRAFT 10/30/2023 11:17 AM
2023-01 Inaccurate Building Permit Fees – Prior Year Recommendation Not Implemented
During the current year audit, we followed up on the status of the Significant Deficiency identified on the
Status of Prior Year Significant Deficiency Item 2022-01. We found that the deficiency has not been
addressed as of June 30, 2023. Therefore, it is deemed to be a current year Significant Deficiency. Details
of the deficiency and management’s response is listed in the Status of Prior Year Significant Deficiency.
Management’s Response:
See Management’s Response to Current Year Status for the above deficiency as listed in the
Status of Prior Year Significant Deficiency.
3
REVIEW DRAFT 10/30/2023 11:17 AM
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CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
2023-02 Purchasing Policy Compliance and Clarification of Requirements - Prior Year
Recommendation Not Implemented
During the current year audit, we followed up on the status of the Other Matter identified on the Status of
Prior Year Other Matters Item 2022-02. We found that the matter has not been addressed as of June 30,
2023. Therefore, it is deemed to be a current year Other Matter. Details of the matter and management’s
response is listed in the Status of Prior Year Other Matters.
Management’s Response:
See Management’s Response to Current Year Status for the above matter as listed in the Status of
Prior Year Other Matters.
5
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE
The following comment represents new pronouncements taking affect in the next few years. We have
cited them here to keep you informed of developments.
EFFECTIVE FISCAL YEARS 2022, 2023 and 2024:
GASB 99 – Omnibus 2022
The objectives of this Statement are to enhance comparability in accounting and financial reporting and to
improve the consistency of authoritative literature by addressing (1) practice issues that have been
identified during implementation and application of certain GASB Statements and (2) accounting and
financial reporting for financial guarantees. The practice issues addressed by this Statement are as
follows:
•Classification and reporting of derivative instruments within the scope of Statement No. 53,
Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of
either an investment derivative instrument or a hedging derivative instrument
•Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination
of the lease term, classification of a lease as a short term lease, recognition and measurement of a
lease liability and a lease asset, and identification of lease incentives
•Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships
and Availability Payment Arrangements, related to (a) the determination of the public-private and
public-public partnership (PPP) term and (b) recognition and measurement of installment
payments and the transfer of the underlying PPP asset
•Clarification of provisions in Statement No. 96, Subscription-Based Information Technology
Arrangements, related to the subscription-based information technology arrangement (SBITA)
term, classification of a SBITA as a short term SBITA, and recognition and measurement of a
subscription liability
•Extension of the period during which the London Interbank Offered Rate (LIBOR) is considered
an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an
interest rate swap that hedges the interest rate risk of taxable debt
•Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance
Program (SNAP)
•Disclosures related to nonmonetary transactions
•Pledges of future revenues when resources are not received by the pledging government
6
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
GASB 99 – Omnibus 2022 (Continued)
•Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management’s
Discussion and Analysis—for State and Local Governments, as amended, related to the focus of
the government-wide financial statements
•Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of
Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position
•Terminology used in Statement 53 to refer to resource flows statements.
The Requirements of this Statement are Effective as Follows:
The requirements in paragraphs 26–32 related to extension of the use of LIBOR, accounting for SNAP
distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging
governments, clarification of certain provisions in Statement 34, as amended, and terminology updates
related to Statement 53 and Statement 63 are effective upon issuance.
The requirements in paragraphs 11–25 related to leases, PPPs, and SBITAs are effective for fiscal years
beginning after June 15, 2022, and all reporting periods thereafter.
The requirements in paragraphs 4–10 related to financial guarantees and the classification and reporting
of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after
June 15, 2023, and all reporting periods thereafter.
Earlier application is encouraged and is permitted by individual topic.
How the Changes in This Statement Will Improve Financial Reporting
The requirements of this Statement will enhance comparability in the application of accounting and
financial reporting requirements and will improve the consistency of authoritative literature. Consistent
authoritative literature enables governments and other stakeholders to more easily locate and apply the
correct accounting and financial reporting provisions, which improves the consistency with which such
provisions are applied. The comparability of financial statements also will improve as a result of this
Statement. Better consistency and comparability improve the usefulness of information for users of state
and local government financial statements.
7
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
EFFECTIVE FISCAL YEAR 2023/24:
GASB 100 – Accounting for Changes and Error Corrections
The primary objective of this Statement is to enhance accounting and financial reporting requirements for
accounting changes and error corrections to provide more understandable, reliable, relevant, consistent,
and comparable information for making decisions or assessing accountability
This Statement defines accounting changes as changes in accounting principles, changes in accounting
estimates, and changes to or within the financial reporting entity and describes the transactions or other
events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting
principles and (2) certain changes in accounting estimates that result from a change in measurement
methodology, a new principle or methodology should be justified on the basis that it is preferable to the
principle or methodology used before the change. That preferability should be based on the qualitative
characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency,
and comparability. This Statement also addresses corrections of errors in previously issued financial
statements.
This Statement prescribes the accounting and financial reporting for (1) each type of accounting change
and (2) error corrections. This Statement requires that (a) changes in accounting principles and error
corrections be reported retroactively by restating prior periods, (b) changes to or within the financial
reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in
accounting estimates be reported prospectively by recognizing the change in the current period. The
requirements of this Statement for changes in accounting principles apply to the implementation of a new
pronouncement in absence of specific transition provisions in the new pronouncement. This Statement
also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund
balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements.
This Statement requires disclosure in notes to financial statements of descriptive information about
accounting changes and error corrections, such as their nature. In addition, information about the
quantitative effects on beginning balances of each accounting change and error correction should be
disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to
beginning balances as restated.
Furthermore, this Statement addresses how information that is affected by a change in accounting
principle or error correction should be presented in required supplementary information (RSI) and
supplementary information (SI). For periods that are earlier than those included in the basic financial
statements, information presented in RSI or SI should be restated for error corrections, if practicable, but
not for changes in accounting principles.
8
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
EFFECTIVE FISCAL YEAR 2024/25:
GASB 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by
updating the recognition and measurement guidance for compensated absences. That objective is
achieved by aligning the recognition and measurement guidance under a unified model and by amending
certain previously required disclosures.
Recognition And Measurement
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not
been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A
liability should be recognized for leave that has not been used if (a) the leave is attributable to services
already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time
off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already
rendered when an employee has performed the services required to earn the leave. Leave that accumulates
is carried forward from the reporting period in which it is earned to a future reporting period during which
it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not
to be used or otherwise paid or settled, a government should consider relevant factors such as
employment policies related to compensated absences and historical information about the use or
payment of compensated absences. However, leave that is more likely than not to be settled through
conversion to defined benefit postemployment benefits should not be included in a liability for
compensated absences.
This Statement requires that a liability for certain types of compensated absences—including parental
leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement
also requires that a liability for specific types of compensated absences not be recognized until the leave
is used.
This Statement also establishes guidance for measuring a liability for leave that has not been used,
generally using an employee’s pay rate as of the date of the financial statements. A liability for leave that
has been used but not yet paid or settled should be measured at the amount of the cash payment or
noncash settlement to be made. Certain salary-related payments that are directly and incrementally
associated with payments for leave also should be included in the measurement of the liabilities.
With respect to financial statements prepared using the current financial resources measurement focus,
this Statement requires that expenditures be recognized for the amount that normally would be liquidated
with expendable available financial resources.
Notes To Financial Statements
This Statement amends the existing requirement to disclose the gross increases and decreases in a liability
for compensated absences to allow governments to disclose only the net change in the liability (as long as
they identify it as a net change). In addition, governments are no longer required to disclose which
governmental funds typically have been used to liquidate the liability for compensated absences.
9
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
GASB 101 – Compensated Absences (Continued)
How the Changes in this Statement Will Improve Financial Reporting
The unified recognition and measurement model in this Statement will result in a liability for
compensated absences that more appropriately reflects when a government incurs an obligation. In
addition, the model can be applied consistently to any type of compensated absence and will eliminate
potential comparability issues between governments that offer different types of leave.
The model also will result in a more robust estimate of the amount of compensated absences that a
government will pay or settle, which will enhance the relevance and reliability of information about the
liability for compensated absences.
10
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
STATUS OF PRIOR YEAR SIGNIFICANT DEFICIENCIES
REVIEW DRAFT 10/30/2023 11:17 AM
2022-01 Inaccurate Building Permit Fees
The rates charged in the City’s permit billing system should be consistent with the City’s Master Fee
Schedule approved by City Council and on the City’s website.
As noted in the prior year Memorandum on Internal Control comment 2021-01, we again noted that the
rates charged in the City’s permit billing system are not consistent with the City’s Master Fee Schedule
approved by City Council.
During the fiscal year 2022 audit, we tested twenty-five receipts and recalculated the fees using the City’s
Master Fee Schedule and noted five receipts for building permits that we recalculated, but could not
arrive at the same amount charged. Based on our recalculations using the City’s Master Fee Schedule, the
building permit fees that should have been charged, and the related amount undercharged were as follows:
Receipt Number
Building Permit Fee
Charged
Building Permit Fee That
Should Have Been
Charged Based on
Master Fee Schedule Undercharged
003-00001681 $3,997.00 $4,820.20 $(823.20)
017-00000203 2,317.00 3,140.20 (823.20)
017-00001783 1,210.00 1,714.00 (504.00)
003-00003680 918.10 1,251.64 (333.54)
003-00004064 947.50 1,285.60 (338.10)
We understand that the Community Development Department (CDD) staff determined that the Master
Fee Schedule approved by City Council and posted on the City’s website included incorrect building
permit fees and CDD staff believed that the correct fees had been charged.
We also noted one receipt for an investigation fee (receipt # 003-00003019) and one receipt for a building
permit renewal fee (receipt # 017-00001262) that were not listed on the revised Master Fee Schedule, nor
supported by an ordinance or resolution. The CDD staff indicated that the Master Fee Schedule is being
updated to incorporate these fees that were charged.
Although City staff believe that the correct fees were charged for the building permits, investigation fee
and building permit renewal fees, we were unable to verify that the correct fees were charged based on
the Master Fee Schedule approved by City Council. Therefore, the City’s building permit fees,
investigation fees, fire prevention inspection fees and building permit renewal fees revenues may be
understated.
We understand that the City plans to present an updated Master Fee Schedule to Council to ensure that
accurate charges are approved and presented on the City’s website. We recommend that the City develop
a process to ensure that the fees approved by City Council are properly entered into the City’s permit
billing system to ensure proper fees are charged. In addition, we recommend that the City ensure that the
Master Fee Schedule on the City’s website agrees to the Master Fee Schedule approved by City Council.
11
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
STATUS OF PRIOR YEAR SIGNIFICANT DEFICIENCIES
REVIEW DRAFT 10/30/2023 2:22 PM
2022-01 Inaccurate Building Permit Fees (Continued)
Current Status:
We understand that the City Council has approved an updated Master Fee Schedule, effective in
July 2023, and that the City has developed a process to ensure that accurate fees were entered into
the City’s permit billing system and that charges were approved and presented on the City’s
website.
Management’s Response:
The revised Master Fee Schedule was approved by council with the December 19, 2022, meeting,
however, because the fee schedule related to fiscal 2023-24 the website was not updated until
July 1, 2023, when it became effective. Subsequently, the City’s various billing systems were
reviewed for accuracy to ensure agreement with the approved schedule and no variances were
noted.
2021-01 Inaccurate Building Permit Fees
The rates charged in the City’s permit billing system should be consistent with the City’s Master Fee
Schedule approved by City Council and on the City’s website.
We tested twenty-five receipts and recalculated the fees using the City’s Master Fee Schedule and we
noted one receipt for a building permit in the amount of $78,946 that we recalculated, but could not arrive
at the same amount. Based on our recalculation using the City’s Master Fee Schedule, the building permit
fee that should have been charged was $83,137.
The Community Development Department (CDD) staff determined that the Master Fee Schedule
approved by City Council and posted on the City’s website included incorrect building permit fees and
CDD staff believed that the correct fees had been charged, resulting in the fee of $78,946.
Although City staff believe that the correct fees were charged, we were unable to verify that the correct
fees were charged based on the Master Fee Schedule approved by City Council. Therefore, the City’s
building permit fees may be understated due to the use of a lower fee schedule.
We understand that the City plans to present an updated Master Fee Schedule to Council to ensure that
accurate charges are approved and presented on the City website. We recommend that the City develop a
process to ensure that the fees approved by City Council are properly entered into the City’s permit
billing system to ensure proper fees are charged. In addition, we recommend that the City ensure that the
Master Fee Schedule on the City’s website agree to the Master Fee Schedule approved by City Council.
Current Status:
See current year comment 2023-01 and Status of Prior Year Significant Deficiencies comment
2022-01.
12
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
STATUS OF PRIOR YEAR OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
2022-02 Purchasing Policy Compliance and Clarification of Requirements
The City’s Purchasing Policy should indicate when the use of a purchase order, contract, or both is
required, including any exceptions, as necessary. The City’s Purchasing Policy defines a contract as
including, but not being “limited to, a purchase order, a contract for services, a contract for maintenance,
leasing of property or equipment, an addendum or change order, a letter agreement, a memorandum of
understanding, or memorandum of agreement.” The Purchasing Policy defines a purchase order as “a
standardized form to be utilized in contracts for materials, supplies, labor and equipment.” The
Purchasing Policy does not specify whether a purchase order and a contract are required for all purchases,
but we understand it is the City’s practice to obtain both documents for purchases.
During the fiscal year 2022 audit, we selected twenty-five disbursements for testing of supporting
documentation and compliance with the City’s Purchasing Policy and noted two disbursements for which
the disbursements were supported by a contract, however, they were not supported by a purchase order.
We also noted one disbursement that was supported by a purchase order, but not a contract. For similar
types of transactions tested, we noted that these types of disbursements were supported by both a
purchase order and a contract.
For one of the disbursements noted above, City staff indicated that the staff overseeing the initial project
and contract is no longer with the City and that a purchase order was not created for the vendor and
contract for the project due to a staff oversight. And, for the second disbursement noted above, City staff
indicated that they did not think it was necessary for a purchase order to be created as the vendor is used
for on-call repair sidewalk repair services. Lastly, for the third disbursement noted above, City staff
indicated that the purchase order was created without a contract, due to a staff oversight. Although that
appears reasonable, there does not appear to be such an exemption in the City’s Purchasing Policy for the
use of a contract, purchase order or both. Therefore, the City is not in compliance with the Purchasing
Policy for these purchases.
We recommend that the City ensure all purchases comply with purchase documentation requirements and
revise the Purchasing Policy to clarify those requirements to reflect current practices.
Current Status:
During our fiscal year 2023 audit, we noted that the City has not revised the Purchasing Policy to
clarify when a purchase order, contract, or both are required, as well as any broad exemptions.
We also noted that the City has not developed a process to ensure that all purchases comply with
purchase documentation requirements of contracts and purchase orders as the process still
remains decentralized.
Management’s Response:
Management concurs with the need to update the City’s Purchasing Policy and procedures to
ensure appropriate level of internal controls, compliance with policy requirements and alignment
with best practices. This effort has been hampered by staff turnover, vacancies in key positions
and competing priorities. Current management has prioritized review of purchasing and contract
administration protocols, to include updating policies, documentation of procedures, staff training
and better utilization of the City’s financial ERP system to monitor approvals, activity, and
compliance.
13
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
STATUS OF PRIOR YEAR OTHER MATTERS
REVIEW DRAFT 10/30/2023 11:17 AM
2022-03 Current Contracts
The City should ensure that all contracts with outside parties are current.
During the fiscal year 2022 audit, we selected twenty-five disbursements for testing of supporting
documentation and noted one disbursement in the amount of $97,615 made to the Transportation
Authority of Marin, for which the most recent contract in place expired on January 1, 2011.
We understand that the City is currently working on a revised contract with the Transportation Authority
of Marin, however, the City should develop procedures to ensure that all contracts are current to ensure
that payments to outside parties are valid and properly supported.
Current Status:
Implemented.
14
REVIEW DRAFT 10/30/2023 12:16 PM
CITY OF SAN RAFAEL
REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED JUNE 30, 2023
REVIEW DRAFT 10/30/2023 12:16 PM
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REVIEW DRAFT 10/30/2023 12:16 PM
CITY OF SAN RAFAEL
REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2023
Table of Contents
Page
Required Communications .................................................................................................................. 1
Significant Audit Matters:
Qualitative Aspects of Accounting Practices ..................................................................... 1
Difficulties Encountered in Performing the Audit ............................................................. 3
Corrected and Uncorrected Misstatements ......................................................................... 3
Disagreements with Management ....................................................................................... 3
Management Representations .............................................................................................. 4
Management Consultations with Other Independent Accountants ................................... 4
Other Audit Findings or Issues ............................................................................................ 4
Other Matters .............................................................................................................................. 4
REVIEW DRAFT 10/30/2023 12:16 PM
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REVIEW DRAFT 10/30/2023 12:16 PM
REQUIRED COMMUNICATIONS
To the City Council of
the City of San Rafael, California
We have audited the basic financial statements of the City of San Rafael (City) for the year ended June
30, 2023. Professional standards require that we provide you with information about our responsibilities
under generally accepted auditing standards and Government Auditing Standards and the Uniform
Guidance, as well as certain information related to the planned scope and timing of our audit. We have
communicated such information in our letter to you dated March 23, 2023. Professional standards also
require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies - Management is responsible for the selection and use of appropriate accounting
policies. The significant accounting policies used by the City are described in Note 1 to the financial
statements. No new accounting policies were adopted, and the application of existing policies was not
changed during the year, except as follows:
GASB 96 – Subscription Based Information Technology Arrangements
This Statement provides guidance on the accounting and financial reporting for subscription-
based information technology arrangements (SBITAs) for government end users (governments).
This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use
subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides
the capitalization criteria for outlays other than subscription payments, including implementation
costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant,
the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as
amended.
A SBITA is defined as a contract that conveys control of the right to use another party’s (a
SBITA vendor’s) information technology (IT) software, alone or in combination with tangible
capital assets (the underlying IT assets), as specified in the contract for a period of time in an
exchange or exchange-like transaction.
The subscription term includes the period during which a government has a noncancelable right
to use the underlying IT assets. The subscription term also includes periods covered by an option
to extend (if it is reasonably certain that the government or SBITA vendor will exercise that
option) or to terminate (if it is reasonably certain that the government or SBITA vendor will not
exercise that option).
Under this Statement, a government generally should recognize a right-to-use subscription
asset—an intangible asset—and a corresponding subscription liability. A government should
recognize the subscription liability at the commencement of the subscription term, —which is
when the subscription asset is placed into service. The subscription liability should be initially
measured at the present value of subscription payments expected to be made during the
subscription term.
1
REVIEW DRAFT 12:16 PM
Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
E maze@mazeassociates.com
w mazeassociates.com
REVIEW DRAFT 10/30/2023 12:16 PM
Future subscription payments should be discounted using the interest rate the SBITA vendor
charges the government, which may be implicit, or the government’s incremental borrowing rate
if the interest rate is not readily determinable. A government should recognize amortization of the
discount on the subscription liability as an outflow of resources (for example, interest expense) in
subsequent financial reporting periods.
The subscription asset should be initially measured as the sum of (1) the initial subscription
liability amount, (2) payments made to the SBITA vendor before commencement of the
subscription term, and (3) capitalizable implementation costs, less any incentives received from
the SBITA vendor at or before the commencement of the subscription term. A government should
recognize amortization of the subscription asset as an outflow of resources over the subscription
term.
The pronouncement became effective, and as disclosed in Note 1T to the financial statements
required a prior period restatement for the cumulative effect on the financial statements.
The following pronouncements became effective, but did not have a material effect on the financial
statements:
GASB 91 – Conduit Debt Obligations
GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment
Arrangements
GASB 99 – Omnibus 2022, paragraphs 11-25
Unusual Transactions, Controversial or Emerging Areas - We noted no transactions entered into by the
City during the year for which there is a lack of authoritative guidance or consensus. All significant
transactions have been recognized in the financial statements in the proper period.
Accounting Estimates - Accounting estimates are an integral part of the financial statements prepared by
management and are based on management’s knowledge and experience about past and current events
and assumptions about future events. Certain accounting estimates are particularly sensitive because of
their significance to the financial statements and because of the possibility that future events affecting
them may differ significantly from those expected. The most sensitive estimates affecting the City’s
financial statements were:
Estimated Net Pension Asset (Liability) and Pension-Related Deferred Outflows and Inflows of
Resources: Management’s estimates of the net pension asset (liability) and related deferred
outflows/inflows of resources are disclosed in Note 9 to the financial statements and are based on
an actuarial study and accounting valuation determined by the Marin County Employees’
Retirement Association which are based on the experience of the City. We evaluated the key
factors and assumptions used to develop the estimates and determined they are reasonable in
relation to the basic financial statements taken as a whole.
Estimated Net OPEB Liability and OPEB-Related Deferred Outflows and Inflows of Resources:
Management’s estimates of the net OPEB liability and related deferred outflows/inflows of
resources are disclosed in Note 11 to the financial statements and are based on an actuarial study
determined by a consultant, which is based on the experience of the City. We evaluated the key
factors and assumptions used to develop the estimates and determined they are reasonable in
relation to the basic financial statements taken as a whole.
Estimate of the depreciation: Management’s estimate of depreciation is based on useful lives
determined by management. These lives have been determined by management based on the
expected useful life of assets as disclosed in Note 1K to the financial statements. We evaluated
the key factors and assumptions used to develop the depreciation estimate and determined that it
is reasonable in relation to the basic financial statements taken as a whole.
2
REVIEW DRAFT 10/30/2023 12:16 PM
Estimated Fair Value of Investments: As of June 30, 2022, cash and investments were measured
by fair value, as disclosed in Note 2 to the financial statements. Fair value is essentially market
pricing in effect as of June 30, 2022. These fair values are not required to be adjusted for changes
in general market conditions occurring subsequent to June 30, 2022.
Estimated Long-Term Receivable from San Rafael Sanitation District: Management’s estimate of
the long-term receivable from the District is disclosed in Note 4G to the financial statements and
is based on the District’s estimated liability for pension and post-employment health care benefits
incurred by the City for the District staff, but not yet funded. We evaluated the key factors and
assumptions used to develop the long-term receivable from the District in determining that it is
reasonable in relation to the financial statements taken as a whole.
Estimated Claims Liabilities: Management’s estimate of the claims liabilities payable is
disclosed in Note 13 to the financial statements and is based on actuarial studies determined by a
consultant, which are based on the claims experience of the City. We evaluated the key factors
and assumptions used to develop the estimate and determined that it is reasonable in relation to
the basic financial statements taken as a whole.
Estimate of Compensated Absences: Accrued compensated absences which are comprised of
accrued vacation, holiday, and certain other compensating time is estimated using accumulated
unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note
1L to the financial statements. We evaluated the key factors and assumptions used to develop the
accrued compensated absences and determined that it is reasonable in relation to the basic
financial statements taken as a whole.
Disclosures - The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements. In addition, none of the misstatements
detected as a result of audit procedures and corrected by management were material, either individually or
in the aggregate, to each opinion unit’s financial statements taken as a whole.
Professional standards require us to accumulate all known and likely uncorrected misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level of
management. We have no such misstatements to report to the City Council.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during the
course of our audit.
3
REVIEW DRAFT 10/30/2023 12:16 PM
Management Representations
We have requested certain representations from management that are included in a management
representation letter dated DATE.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves
application of an accounting principle to the City’s financial statements or a determination of the type of
auditor’s opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
Other Matters
We applied certain limited procedures to the required supplementary information that accompanies and
supplements the basic financial statements. Our procedures consisted of inquiries of management
regarding the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We did not audit the required supplementary information
and do not express an opinion or provide any assurance on the required supplementary information.
We were engaged to report on the supplementary information that accompanies the financial statements,
but is not required supplementary information. With respect to this supplementary information, we made
certain inquiries of management and evaluated the form, content, and methods of preparing the
information to determine that the information complies with accounting principles generally accepted in
the United States of America, the method of preparing it has not changed from the prior period, and the
information is appropriate and complete in relation to our audit of the financial statements. We compared
and reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
We were not engaged to report on the Introductory and Statistical Sections which accompany the financial
statements, but are not required supplementary information. Such information has not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express
an opinion or provide any assurance them.
******
This information is intended solely for the use of City Council and management and is not intended to be,
and should not be, used by anyone other than these specified parties.
Pleasant Hill, California
DATE
4
-
-
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2023
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i
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
FOR THE YEAR ENDED JUNE 30, 2023
Table of Contents
Page
INTRODUCTORY SECTION:
Table of Contents .......................................................................................................................................... i
FINANCIAL SECTION:
Independent Auditor’s Report ................................................................................................................. 1
Basic Financial Statements
Balance Sheet ........................................................................................................................................ 3
Statement of Revenue, Expenditures and Changes in Fund Balance ................................................... 4
Notes to the Basic Financial Statements ............................................................................................... 5
Supplementary Information
Schedule of Federal, State and Local Awards .................................................................................... 10
Combining Statement of Revenues, Expenditures and Changes in Fund Balance ........................... 11
Schedule of Expenditures by State Categories ................................................................................... 12
Schedule of Claimed Administrative Costs ........................................................................................ 13
Schedule of Claimed Equipment Expenditures ................................................................................ 14
Schedule of Claimed Expenditures for Renovations and Repairs ...................................................... 15
Audited Attendance and Fiscal Reports/Audited Fiscal Reports:
CSPP 2274 – California State Preschool Program ........................................................................... 16
Audited Reserve Account Activity Report ....................................................................................... 24
Notes to the Supplementary Information ............................................................................................ 25
Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards ................................................... 27
Summary of Findings and Questioned Costs ................................................................................ 29
Current Status of Prior Year Findings ........................................................................................... 30
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of San Rafael, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the City of San Rafael Child Development
Program (Program) of the City of San Rafael (City), California, as of and for the year ended June 30,
2023, and the related notes to the financial statements, which collectively comprise the Program’s basic
financial statements as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Program as of June 30, 2023, and the changes in financial position for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of the financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
1
Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
• maze@mazeassociates.com
w mazeassociates.com
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Program’s internal control. Accordingly, no such opinion is
expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the basic financial statements that
collective comprise the Program’s basic financial statements.The accompanying Supplementary
Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information is the responsibility of management and
was derived from and relates directly to the underlying accounting and other records used to prepare the
basic financial statements. The information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and certain additional procedures and in conformity with the CDE
Audit Guide, issued by the California Department of Education, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the Supplementary
Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated Date on our
consideration of the Program’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the Program’s internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering the Program’s
internal control over financial reporting and compliance.
Pleasant Hill, California
DATE
2
-
-
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
BALANCE SHEET
JUNE 30, 2023
ASSETS
Cash (Note 3)$651,512
Grants receivable (Note 4)913
Total Assets $652,425
LIABILITIES AND FUND BALANCE
Accounts payable $41,460
Total Liabilities 41,460
Fund balance, restricted (Note 5)610,965
Total Liabilities and Fund Balance $652,425
See accompanying notes to financial statements
3
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2023
REVENUES
Restricted:
State grants:
Current year grants $541,103
CDBG preschool grant 23,000
First five school readiness grants 117,556
Local grant 20,913
Unrestricted:
Interest 5,098
Parent fees - noncertified children 3,183,904
Other revenue 32,304
Total Revenues 3,923,878
EXPENDITURES
Certified salaries 143,367
Classified Salaries 1,715,409
Employee benefits 1,229,531
Training and instruction 6,829
Office supplies 594
Books and supplies 214,387
Utilities and housekeeping services 28,352
Rentals 25,845
Travel and conference 1,319
Services and other operating expenditures 137,493
Equipment 55,271
Insurance 28,490
Renovation and repair 77,556
Total Expenditures 3,664,443
CHANGE IN FUND BALANCE 259,435
FUND BALANCE,
Beginning of year 351,530
End of year $610,965
See accompanying notes to financial statements
4
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financials Statements
For the Year Ended June 30, 2023
NOTE 1 – ORGANIZATION
The City of San Rafael operates the Child Development Program encompassing eight childcare
centers within the City of San Rafael. One of these centers provides day care services to subsidized
families under the Child Development Program funded by the California Department of Education,
which includes the Preschool program. The City is financially accountable for the activities of the
Program. The Program has no employees and substantially all staff services which it requires are
performed by the City's personnel. Costs incurred by the City to provide such services including
compensation, retirement, and other benefit costs are reimbursed by the Program. These basic
financial statements present only the activities of the Program and are not intended to present the
financial position of the City of San Rafael, California, or the results of its operations. The
financial statements of the Program are included as a Special Revenue Fund in the City's financial
statements.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Accounting
The accounting and reporting treatment applied to a fund is determined by its measurement focus.
Governmental funds are accounted for on a spending or “current financial resources” measurement
focus. Accordingly, only current assets and current liabilities generally are included on the balance
sheets. Operating statements of governmental funds present increases (revenues and other financial
sources) and decreases (expenditures and other financial uses) in net current assets.
The Program’s financial activities are accounted for using the modified accrual basis of accounting.
Under this method, revenues are recognized when measurable and available. The City considers all
revenues reported in the governmental funds to be available if the revenues are collected within
sixty days after year-end. Expenditures are recorded when the related fund liability is incurred.
Revenues considered susceptible to accrual include charges for services, federal and state grants,
and interest. Expenditures are recognized in the accounting period in which the liability is incurred,
if measurable.
B. Fund Balance
Fund Balance is the excess of all the Program’s assets over all its liabilities.
5
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financials Statements
For the Year Ended June 30, 2023
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. The City categorizes
its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used
to measure fair value into three levels based on the extent to which inputs used in measuring fair
value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are
observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair
value hierarchy, the measurement is considered to be based on the lowest priority level input that is
significant to the entire measurement.
NOTE 3 – CASH AND INVESTMENTS
The Program’s cash is included in a City-wide cash and investment pool, the details of which are
presented in the City’s basic financial statements. The Program pools cash from all sources with the
City of San Rafael so that it can be invested at the maximum yield, consistent with safety and
liquidity, while individual funds can make expenditures at any time. The City’s investment policy
and the California Government Code permit investments in Securities of the U.S. Government or its
agencies, Certificates of Deposit, Negotiable Certificates of Deposit, Banker’s Acceptances,
Commercial Paper, the State of California Local Authority Investment Fund (LAIF Pool), Repurchase
Agreements, Medium-Term Corporate Notes, Limited Obligation Improvement Bonds related to
special assessment districts and special tax districts, Mortgage and Asset-Backed Obligations and
Money Market/Mutual Funds.
The City categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical
assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant
unobservable inputs. The City of San Rafael pooled investments is an uncategorized input not defined
as Level 1, Level 2, or Level 3 input.
6
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financials Statements
For the Year Ended June 30, 2023
NOTE 4 – GRANTS RECEIVABLE
The Program has the following grants receivable at June 30, 2023:
Agency Grant Amount
Marin County First 5 Grant $913
Total $913
NOTE 5 – FUND BALANCES
Governmental fund balances represent the net current assets of each fund. Net current assets
generally represent a fund’s cash and receivables, less its liabilities.
The City’s fund balances are classified based on spending constraints imposed on the use of
resources. For programs with multiple funding sources, the City prioritizes and expends funds in
the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the
following hierarchy is ranked according to the degree of spending constraint.
Nonspendable represents balances set aside to indicate items do not represent available, spendable
resources even though they are a component of assets. Fund balances required to be maintained
intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids,
notes receivable, and land held for redevelopment are included. However, if proceeds realized from
the sale or collection of nonspendable assets are restricted, committed or assigned, then
Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors,
laws, regulations, or enabling legislation which requires the resources to be used only for a specific
purpose. Nonspendable amounts subject to restrictions are included along with spendable resources.
Committed fund balances have constraints imposed by formal action of the City Council which may
be altered only by formal action of the City Council. Nonspendable amounts subject to council
commitments are included along with spendable resources.
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific
purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its
designee and may be changed at the discretion of the City Council or its designee. This category
includes nonspendables, when it is the City’s intent to use proceeds or collections for a specific
purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service
Funds which have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or
assigned. This includes the residual general fund balance and residual fund deficits, if any, of other
governmental funds.
7
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financials Statements
For the Year Ended June 30, 2023
NOTE 6 – CONTINGENCIES AND COMMITMENTS
The Program participates in Federal, State and County grant programs that are fully or partially
funded by grants received from other governmental units. Expenditures financed by grants are
subject to audit by the appropriate grantor government. If expenditures are disallowed due to
noncompliance with grantor program regulations, the City may be required to reimburse the grantor
government. As of June 30, 2023, some amounts of grant expenditures have not been audited, but
the City believes that disallowed expenditures, if any, based on subsequent audits will not have a
material effect on any individual governmental funds or the overall financial condition of the City.
8
SUPPLEMENTARY INFORMATION
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF FEDERAL, STATE AND LOCAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2023
Program
Federal
Assistance
Listing
Number
Pass-Through Identifying
Number
Award
Amount Revenue Expenditures
Federal Awards
US Department of Housing and Urban Development,
Pass-through the County of Marin
Community Development Block Grant 14.218 40CDBG23CD452 $23,000 $23,000 $23,000
US Department of Health and Human Services
Pass-through State of California, Department of Education
Child Care and Development Block Grant 93.575
ARPA -- Stabilization Stipend Not available 102,474 74,874 $74,874
COVID 19 -- CRRSA Stipend 004-0045655 24,806
Total Federal Awards $150,280 $97,874 $97,874
State Awards
Child Development Division
State Preschool Program FY2023 CSPP-2274 $492,677 $492,677 $492,677
Total State Awards $492,677 $492,677 $492,677
County Award
County of Marin
First Five - Preschool CSRI-21-009-11 $117,556 $117,556 $117,556
Total County Awards $117,556 $117,556 $117,556
Local Awards
Marin Child Care Council N/A $20,913 $20,913 $20,913
Total Local Awards $20,913 $20,913 $20,913
Total State, Federal Awards, and Local $781,426 $729,020 $729,020
10
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2023
State Preschool
Program Total CDE Non-CDE
(CSPP1283) CD Contracts Programs Total
REVENUES
Restricted:
State grants:
Current year grants $541,103 $541,103 $541,103
CDBG preschool grant $23,000 23,000
First Five school readiness grants 117,556 117,556
Local grants 20,913 20,913
Unrestricted:
Interest 5,098 5,098
Parent fees - noncertified children 3,183,904 3,183,904
Other revenue 32,304 32,304
Total Revenues 541,103 541,103 3,382,775 3,923,878
EXPENDITURES
Certified salaries 143,367 143,367 143,367
Classified salaries 106,643 106,643 1,608,766 1,715,409
Employee benefits 194,820 194,820 1,034,711 1,229,531
Training and instruction 6,829 6,829
Office supplies 594 594
Books and supplies 25,784 25,784 188,603 214,387
Utilities and housekeeping services 28,352 28,352
Travel and conference 1,319 1,319
Rentals 25,845 25,845
Services and other operating expenditures 22,063 22,063 115,430 137,493
Equipment 55,271 55,271
Insurance 28,490 28,490
Renovation and repair 77,556 77,556
Total Expenditures 492,677 492,677 3,171,766 3,664,443
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES 48,426 48,426 211,009 259,435
CHANGE IN FUND BALANCE $48,426 $48,426 $211,009 $259,435
11
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF EXPENDITURES BY STATE CATEGORIES
FOR THE YEAR ENDED JUNE 30, 2023
CSPP-2274
State Preschool
Program Totals
EXPENDITURES:
1000 Certified personnel salaries $143,367 $143,367
Due from State
1100 Teachers' salaries 143,367 143,367
1200 Administration
1300 Supervisors' salaries
1600 Infant educators
2001 Classified personnel salaries $106,643 $106,643
2100 Instructional aides' salaries 106,643 106,643
2300 Clerical and other office salaries
2500 Food services salaries
2600 Transportation salaries
3000 Employee benefits $194,820 $194,820
3200 Payroll taxes (Medicare) 3,383 3,383
3300 Other benefits 141,094 141,094
3400 Health and welfare 47,673 47,673
3600 Workers' compensation insurance 2,670 2,670
4000 Books and supplies $25,784 $25,784
4200 Other books
4300 Instructional materials and supplies 25,784 25,784
4500 Other supplies
4600 Food supplies
5000 Services and other operating expenditures $22,063 $22,063
5100 Lecturer
5200 Travel and conferences
5300 Memberships and dues 603 603
5400 Insurance 1,689 1,689
5500 Utilities and housekeeping services 2,219 2,219
5600 Rentals, leases and repairs
5700 Audit expense
5800 Other direct services & admin. 17,552 17,552
6000 Capital Outlay
6100 Sites and improvements of sites
6200 Buildings and improvements of buildings
6400 Equipment (program-related)
6500 Equipment replacement (program related)
Depreciation
Costs capitalized as Fixed Assets
TOTAL OF REIMBURSABLE AND
NONREIMBURSABLE EXPENDITURES $492,677 $492,677
We have examined the claims filed for reimbursement and the original records supporting the transactions
recorded under the contracts listed above to an extent considered necessary to assure ourselves that the
amounts claimed by the contractor were eligible for reimbursement, reasonable, necessary, and adequately
supported, according to governing laws, regulations, and contract provisions.
12
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF CLAIMED ADMINISTRATIVE COSTS
FOR THE YEAR ENDED JUNE 30, 2023
CSPP-2274
State Preschool
Program
Administrative Costs
5000 Services and other operating expenses (audit fees)$7,282
Total Administrative Costs claimed for reimbursement $7,282
13
Capitalized Equipment Expensed on the AUD with Prior Written Approval CSPP-2274
None $0
Subtotal 0
Capitalized Equipment Expensed on the AUD without Prior Written Approval CSPP-2274
None 0
Subtotal 0
Total $0
NOTE: The City's capitalization threshold is $5,000.
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF CLAIMED EQUIPMENT EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2023
14
Capitalized R&R Project Under $10,000 CSPP-2274
None $0
Subtotal 0
Capitalized R&R Project of $10,000 or More with Prior Written Approval CSPP-2274
None 0
Subtotal 0
Capitalized R&R Project of $10,000 or More without Prior Written Approval CSPP-2274
None 0
Subtotal 0
Total $0
NOTE: The City's capitalization threshold is $5,000.
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF CLAIMED EXPENDITURES FOR RENOVATIONS AND REPAIRS
FOR THE YEAR ENDED JUNE 30, 2023
15
Contractor Name:
California Department of Education
Audited Enrollment, Attendance and Fiscal
Report for California State Preschool Program
Contract Number:
Fiscal Year Ended: June 30, 202
Vendor Code:
Section 1 – Number of Counties Where Services are Provided
Number of counties where the agency provided services to certified children (Form 1):
Number of counties where the agency provided mental health consultation services to certified children (Form 2):
Number of counties where the agency provided services to non-certified children (Form 3):
Number of counties where the agency provided mental health consultation services to non-certified children (Form 4):
Total enrollment and attendance forms to attach:
Note: For each of the above categories, submit one form for each service county.
Section 2 – Days of Enrollment, Attendance and Operation
Enrollment and Attendance Form Summary
Column A
Cumulative FY
per CPARIS
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjusted Days
per Audit
Total Certified Days of Enrollment
Total &HUWLILHG'D\VRI(QUROOPHQWZLWKMental Health
Consultation Services
Days of Attendance (including MHCS) N/A
Total Non-Certified Days of Enrollment
Total 1RQ&HUWLILHG'D\VRI(QUROOPHQWZLWKMental
Health Consultation Services
Days of Operation
Column A
Cumulative FY
per CPARIS
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjusted Days
per Audit
Days of Operation N/A
AUD 8501 Page 1 of 6 Audit Report Page
City of San Rafael Child Development Program CSPP 2274
2193
1
0
0
0
1
11,864 11,864 11,864.0000
0
10,567 10,567
0
0
175 175
1
Contractor Name: Contract Number:
Section 3 – Revenue
Restricted Income Column A – Cumulative FY
per CPARIS
Column B – Audit
Adjustments
Column C – Cumulative FY
per Audit
Child Nutrition Programs
County Maintenance of Effort (EC Section 82)
Other:
Other:
TOTAL RESTRICTED INCOME
Transfer from Reserve Column A – Cumulative FY
per CPARIS
Column B – Audit
Adjustments
Column C – Cumulative FY
per Audit
Transfer from 3UHVFKRROReserve$FFRXQW
Other Income Column A – Cumulative FY
per CPARIS
Column B – Audit
Adjustments
Column C – Cumulative FY
per Audit
Waived Family Fees for Certified Children
Interest Earned on Child Development Apportionment
Payments
8QUHVWULFWHG,QFRPH Fees for Non-Certified Children
Unrestricted Income: Head Start
Other:
Other:
AUD 8501 Page 2 of 6 Audit Report Page
0
0
74,874 74,874
0
0 74,874 74,874
0
0
0
0
0
0
0
City of San Rafael Child Development Program CSPP 2274
ARPA
1
Contractor Name: Contract Number:
Section 4 - Reimbursable Expenses
Cost Category Column A – Cumulative FY
per CPARIS
Column B – Audit
Adjustments
Column C – Cumulative FY
per Audit
Direct Payments to Providers (FCCH only)
1000 Certificated Salaries
2000 Classified Salaries
3000 Employee Benefits
4000 Books and Supplies
5000 Services and Other Operating Expenses
6100/6200 Other Approved Capital Outlay
6400 New Equipment (program-related)
6500 Equipment Replacement (program-related)
Depreciation or Use Allowance
Start-up Expenses (service level exemption)
Indirect Costs (include in Total Administrative Cost)
TOTAL REIMBURSABLE EXPENSES
Does the agency have an indirect cost rate approved by its cognizant agency (Select YES or NO)? <HV 1R
Approved Indirect Cost Rate:
Specific Items of Reimbursable Expenses Column A – Cumulative FY
per CPARIS
Column B – Audit
Adjustments
Column C – Cumulative FY
per Audit
Total Administrative Cost (included in Reimbursable
Expenses)
Total Staff Training Cost (included in Reimbursable
Expenses)
AUD 8501 Page 3 of 6 Audit Report Page
126833/(0(17$/5(9(18((;3(16(6&KHFNWKLVER[DQGRPLWSDJH
0
143,367 143,367
106,643 106,643
194,820 194,820
25,784 25,784
22,063 22,063
0
0
0
0
0
0
492,677 0 492,677
7,282 7,282
0
City of San Rafael Child Development Program CSPP 2274
✔
1
□ □
□
Contractor Name: Contract Number:
Section 5 - Supplemental Funding
Supplemental Revenue Column A – Cumulative FY
per CPARIS
Column B – Audit
Adjustments
Column C – Cumulative FY
per Audit
Enhancement Funding
Other:
Other:
TOTAL SUPPLEMENTAL REVENUE
Supplemental Expenses Column A – Cumulative FY
per CPARIS
Column B – Audit
Adjustments
Column C – Cumulative FY
per Audit
1000 Certificated Salaries
2000 Classified Salaries
3000 Employee Benefits
4000 Books and Supplies
5000 Services and Other Operating Expenses
6000 Equipment / Capital Outlay
Depreciation or Use Allowance
Indirect Costs
Non-Reimbursable Supplemental Expenses
TOTAL SUPPLEMENTAL EXPENSES
AUD 8501 Page 4 of 6 Audit Report Page
10,420 10,420
0
0
10,420 0 10,420
0
0
35 35
0
6,200 6,200
357 357
0
0
84 84
6,676 0 6,676
City of San Rafael Child Development Program CSPP 2274
19
Contractor Name: Contract Number:
Section 6 - Summary
Description Column A – Cumulative FY
per CPARIS
Column B – Audit
Adjustments
Column C – Cumulative FY
per Audit
Total Certified Days of Enrollment (including MHCS)
Days of Operation
Days of Attendance (including MHCS)
Total Certified Adjusted Days of Enrollment N/A N/A
Total Non-Certified Adjusted Days of Enrollment N/A N/A
Restricted Program Income
Transfer from 3UHVFKRROReserve$FFRXQW
Interest Earned on Apportionment Payments
Direct Payments to Providers
Start-up Expenses (service level exemption)
Total Reimbursable Expenses
Total Administrative Cost
Total Staff Training Cost
Non-Reimbursable Cost (State Use Only) N/A N/A
AUD 8501 Page 5 of 6 Audit Report Page
11,864 0 11,864
175 0 175
10,567 0 10,567
11,864.0000
0.0000
0 74,874 74,874
000
000
000
000
492,677 0 492,677
0 7,282 7,282
000
City of San Rafael Child Development Program CSPP 2274
2
Contractor Name: Contract Number:
Section 7 – Auditor’s Assurances
Independent auditor's assurances on agency's compliance with the contract funding terms and conditions and program requirements of the
California Department of Education, Early Education Division:
1REligibility, enrollment and attendance records are being maintained as required (Select YES or NO): <HV
Reimbursable expenses claimed in Section 4 are eligible for reimbursement, reasonable, necessary, and adequately supported (Select YES
or NO): 1R<HV
Section 8 – Comments
Include any comments in the comment box. If necessary, attach additional sheets to explain adjustments.
AUD 8501 Page 6 of 6 Audit Report Page
✔
✔
Adjustments identified in Column B are adjustments made to report audit fees as administrative costs and ARPA funds.
City of San Rafael Child Development Program CSPP 2274
2
□ □
□ □
Contractor Name: Contract Number:
AUD 8501 – Form 1 )<± Audit Report Page Page 1 of 2
California State Preschool Program – Form 1
Certified Children Days of Enrollment and Attendance
Service County:
Enrollment Description
Column A
Cumulative FY
per CPARIS
June Report
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjustment
Factor
Column E
Adjusted Days
per Audit
Three Years Old Full-time-plus 2.1240
Three Years Old Full-time 1.8000
Three Years Old Part-time
Four Years and Older Full-time-plus 1.1800
Four Years and Older Full-time 1.0000
Four Years and Older Part-time
Exceptional Needs Full-time-plus 2.8320
Exceptional Needs Full-time 2.4000
Exceptional Needs Part-time
Dual Language Learner Full-time-plus 1.4160
Dual Language Learner Full-time 1.2000
Dual Language Learner Part-time
City of San Rafael Child Development Program CSPP 2274
Marin
00.0000
00.0000
2,452 2,452 1.0872 2,665.8144
0 0.0000
00.0000
7,911 7,911 0.6040 4,778.2440
00.0000
00.0000
1,501 1,501 1.4496 2,175.8496
00.0000
00.0000
0 0.6040 0.0000
2
Contractor Name: Contract Number:
AUD 8501 – Form 1 )<± Audit Report Page Page 2 of 2
Enrollment Description
Column A
Cumulative FY
per CPARIS
June Report
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjustment
Factor
Column E
Adjusted Days
per Audit
At Risk of Abuse or Neglect Full-time-plus 1.2980
At Risk of Abuse or Neglect Full-time 1.1000
At Risk of Abuse or Neglect Part-time
Severely Disabled Full-time-plus 2.8320
Severely Disabled Full-time 2.4000
Severely Disabled Part-time
TOTAL CERTIFIED DAYS OF ENROLLMENT N/A
Attendance
Column A
Cumulative FY
per CPARIS
June Report
Column B
Audit
Adjustments
Column C
Cumulative FY
per Audit
Column D
Adjustment
Factor
Column E
Adjusted Days
per Audit
DAYS OF ATTENDANCE N/A N/A
Enter the sum of Total Certified Days of Enrollment from all Form 1s in the Total Certified Days of Enrollment line of AUD 8501, Section 2.
Enter the sum of Days of Attendance from all Form 1s and Form 2s in the Days of Attendance line of AUD 8501, Section 2.
00.0000
00.0000
0 0.6040 0.0000
00.0000
00.0000
0 1.4496 0.0000
11,864 0 11,864 9,619.9080
10,567 10,567
City of San Rafael Child Development Program CSPP 2274
2
California Department of Education Fiscal Year Ending: June 30, 202
Audited 3UHVFKRROReserve Account Activity Report Vendor Code:
Contractor Name:
Section 1 – Prior Year Reserve Account Activity
Beginning Balance (202–2 $8' $Ending Balance):
Plus Transfers to Reserve Account:
202–2Contract No.
Per 202–2
Post-Audit
((1FS 9530
Total Transferred from 202–2 Contracts
Less Excess Reserve to be Billed:
202–2 ((1)6 5HVHUYH%DODQFH$IWHU%LOOLQJ:
6ection 2 – Current Year Reserve Account Activity
Plus Interest Earned This Year on Reserve:
Description Column A
SHU&3$5,6
Column B
Audit Adjustments
Column C
Total per Audit
Interest Earned
6. Less Transfers to Contracts from Reserve:
202–2 Contract No. Column A
SHU&3$5,6
Column B
Audit Adjustments
Column C
Total per Audit
Total Transferred to Contracts
7. Ending Balance:
Description Column A
SHU&3$5,6
Column B
Audit Adjustments
Column C
Total per Audit
Ending Balance on June 30, 202
COMMENTS – If necessary, attach additional sheets to explain adjustments.
AUD 9530A Page 1 of 1 Audit Report Page
2193
10,696
City of San Rafael Child Development Program
19,065
1283 8,369
8,369
22
0
0
0
000
19,067 0 19,067
2
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
Notes to the Supplementary Information
For the Year Ended June 30, 2023
NOTE 1 – NOTE TO SUPPLEMENTARY INFORMATION
In accordance with the applicable requirements from the Funding Terms and Conditions of the City of
San Rafael’s child development contract:
A. Interest Expense
Interest expense is only allowable as a reimbursable cost in certain circumstances when it has been
preapproved by the administering state department or relates to the lease purchase, acquisition, or
repair or renovation of early learning and care facilities owned or leased by the contractor. No
interest expense was claimed as a reimbursable expense for the year ended June 30, 2023.
B.Related Party Rent Expense
All expenses claimed for reimbursement under a related party rent transaction must be supported by
a fair market rental estimate from an independent appraiser, licensed by the California Office of
Real Estate Appraisers. No related party rent expense was claimed as a reimbursable expense for
the year ended June 30, 2023.
C.Bad Debt Expense
Bad debt expense is unallowable unless it relates to uncollected family fees where documentation
of adequate collection attempts exists. No bad debt expense was claimed to a child development
contract for the year ended June 30, 2023.
25
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INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of San Rafael, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the basic financial statements of the City of San
Rafael Child Development Program (Program), California, as of and for the year ended June 30, 2023, and
have issued our report thereon dated DATE. Our report included an emphasis of a matter paragraph
disclosing the implementation of a new accounting principle.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Program's internal
control over financial reporting (internal control) as a basis for designing of audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of Program’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the Program’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the Program’s financial statements will not be prevented, or detected and corrected on a timely basis.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may
exist that were not identified. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. We identified a deficiency in
internal control that we consider to be a significant deficiency as listed on the Schedule of Significant
Deficiency included as part of our separately issued Memorandum on Internal Control dated [BFS
Opinion Date], which is an integral part of our audit and should be read in conjunction with this report.
27
Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
-
1111
T 925.228.2800
E maze@mazeassociates.com
w mazeassociates.com
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Program's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance that are required to be reported under Government Auditing
Standards.
City’s Response to Findings
Government Auditing Standards require the auditor to perform limited procedures on the City’s response
to the findings identified in our audit and described in our separately issued Memorandum on Internal
Control dated [BFS Opinion Date], which is an integral part of our audit and should be read in conjunction
with this report. The City’s response was not subjected to the other auditing procedures applied in the
audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Program’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Program’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Pleasant Hill, California
DATE
28
-
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
SUMMARY OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2023
None noted.
29
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
CURRENT STATUS OF PRIOR YEAR FINDINGS
For the Year Ended June 30, 2023
None noted.
30
INDEPENDENT ACCOUNTANT’S REPORT ON
APPLYING AGREED UPON PROCEDURES FOR
COMPLIANCE WITH THE PROPOSITION 111
2023-2024 APPROPRIATIONS LIMIT INCREMENT
Honorable Mayor and Members of the City Council
City of San Rafael, California
We have performed the procedures enumerated below on the Appropriations Limit Worksheet (Worksheet)
of the City of San Rafael, California, for the year ended June 30, 2024. The City’s management is
responsible for the Worksheet.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the
intended purpose of these procedures, which were suggested by the League of California Cities and
presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, performed solely to assist
you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report
may not be suitable for any other purpose. The procedures performed may not address all the items of
interest to a user of this report and may not meet the needs of all users of this report and, as such, users are
responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and associated findings are as follows:
A. We obtained the Worksheet (Exhibit B to the Resolution) and determined that the 2023-2024
Appropriations Limit of $179,385,992 and annual adjustment factors were adopted by Resolution of
the City Council. We also determined that the population and inflation options were selected by a
recorded vote of the City Council. However, the Resolution indicated that the percent change in
California’s per capita personal income was selected, but the Worksheet shows that the larger
adjustment factor of the change in assessment roll for nonresidential construction of Marin County
was used for the calculation of the 2023-2024 Appropriations Limit.
B. We recomputed the 2023-2024 Appropriations Limit by multiplying the 2022-2023 Prior Year
Appropriations Limit by the Total Growth Factor. We recomputed the Total Growth Factor by
multiplying the population option by the inflation option.
C. For the Worksheet, we agreed the Per Capita Income Factor, City Population Factor and County
Population Factor to California State Department of Finance Worksheets, and the Change in
Assessment Roll for Nonresidential Construction Factor to the Marin County Worksheet.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our
engagement in accordance with attestation standards established by the American Institute of Certified
Public Accountants. We were not engaged to and did not conduct an examination or review engagement,
the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet.
Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures,
other matters might have come to our attention that would have been reported to you.
REVIEW DRAFT 10/30/2023
Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
, maze@mazeassociates.com
w mazeassociates.com
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of management and the City Council and is not
intended to be and should not be used by anyone other than those specified parties; however, this
restriction is not intended to limit the distribution of this report, which is a matter of public record.
Pleasant Hill, California
DATE
REVIEW DRAFT 10/30/2023
-