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1995-1996 Comprehensive Annual Financial Report.... ( II' CITY OF SAN RAFAEL 1400 Fifth Avenue PO Box.151560 San ~~fael, Ca 94915-1560 PHor-;2 (415) 485-3060 FAX (415) 485-3100 TDD (415) 485-3198 . ·············.·.L ······:_,.···· _ •••••••••••••••••••••••••••• .L •••• '" I ADMINISTRATIVE SERVICES DEPARTMENT Agenda Item No. _1_1 ___ _ Meetin Date: Februa 18, 1997 REPORT TO MAYOR AND CITY COUNCIL SUBJECT: COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR THE 1995-96 FISCAL YEAR ~ rh Date: February 12, 1997 File No.: RECOMMENDATION: ACCEPT THE 1995-96 COMPREHENSIVE ANNUAL FINANCIAL REPORT BACKGROUND: As is required by both local code and State law, the City of San Rafael must complete an annual audit of its financial activities. Traditionally, the audit work begins prior to the end of the fiscal year. Once the Administrative Services Department staff have "closed the books", the auditors complete a final review of the City's financial transactions. The auditing firm of C. G. Uhlenberg & Company conducted the audit for the 1995-96 fiscal year. Their work was completed in accordance with accepted auditing practices and Federal municipal guidelines. In the past, the results of the audit were presented in an audit report of the City Council. This year, the Administrative Services Department decided to expand the traditional report to reflect a broader measurement of the 1995-96 fiscal year results. Common in many local municipalities is the preparation of a Comprehensive Annual Financial Report. This report includes not only the standard auditing schedules and footnotes, but it adds two other major sections of information. Staff have taken this initiative with the hopes of developing a CAFR worthy of State and National Finance Officers recognition. This CAFR represents a first pass at building an awarding winning Report. The major results of the 1995-96 Comprehensive Annual Financial Report are d7ed below. . rile N o. _._ ... __ .~ ___ ::.!.. Y-. g -cr Council Meeti~ ------.:::~Tlii.;.;= . OiS Dos ition (L,."'-~{)-.4Ir~~ft~-I-/~~Il_ _ /I.A -~-:.=-7~~~~ ~J '. PAGE 2 ANALYSIS: As mentioned above, the CAFR is intended to provide the reader information beyond the required audit information. Two next sections are included in our Report. The first section, known as "Introductory", provides information about the City's organizational structure, government entities, economic condition and local leadership. Also, it provides an analytical summary of the results of operations for the past year and compares these results to prior year totals. The last section, referred to as "Statistical", displays trend information. Incorporated into this section are schedules or revenues and expenses for the past ten years, major stakeholders (property owners and sales tax generators), and overlapping debt. In addition, schedules of insurance, construction activity, and assessed valuation changes are presented. This data can be useful in gaining a historical perspective on financial trends. It may also be used to forecast anticipated results in the budget development process. Overall, the City's performance was better than expected. Economic recovery from the recession that strapped the City in the early 1990's is evident. General Fund taxes and assessment, totaling $21,465,335 exceeded prior year totals by $1,773,153 and the budget forecast by $516,335. Strong auto sales and occupancy tax returns contributed to this increase. Major capital improvement projects, such as the Merrydale overpass, caused the Intergovernmental Revenues to climb when compared to the prior year. On the Expenditure side, the General Fund total was $86,917 below budget. I feel the direction of moving away from a standard audit report to a Comprehensive Annual Financial Report is a move in the right direction for San Rafael. It is difficult to summarize all of the results of 1995-96 into this agenda item. I must say that the reason for not having the report available until now is that I asked the auditors to make sUbstantial improvements to the their report contained in the middle of the CAFR. Specifically, a number of footnotes have been added or improved to provide the reader a deeper understanding of the numbers contained in the schedules. Now that most of the footnotes meet standard reporting compliance, I am confident the CAFR for 1996- 97 can be completed by December 1 of this year. FISCAL IMPACT: No fiscal impact occurs by having the Council accept this report. The document is presented as the actual results of the City and Agency financial activities for the 1995- 96 year. No budget adjustments are necessary. COUNCIL OPTIONS: The City Council can either choose to: PAGE 3 1) Accept the 1995-96 Comprehensive Annual Financial Report as presented, or 2) Reject the report. The Council is required under current law to accept the report and file it with numerous County, State and Federal agencies. Rejecting this report would leave the City out of compliance with applicable laws. SUMMARY: The City Council should accept the 1995-96 Comprehensive Annual Financial Report. A special thanks goes to Sue Merrill who spearheaded this effort while filling in as interim Finance Director. Without her direction and leadership, this document would not have been possible. Also, Victoria DeWitt complied the Statistical Section of the CAFR. Her assistance is deeply appreciated. ENCLOSURES agendareports\9596cafr.agn CITY OF SAN RAFAEL, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 1996 * * * COMPREHENSIVE ANNUAL FINANCIAL REPORT For The Fiscal Year Ended June 30, 1996 CITY OF SAN RAFAEL, CALIFORNIA P. O. Box 151560 1400 Fifth Avenue San Rafael, California 94915-1560 Prepared by the Administrative Services Department _ fV OF SAN RAFAEL, CALIFORl\ . . . GENERAL PURPOSE ,FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 1996 TABLE OF CONTENTS INTRODUCTORY SECTION: PAGE NO. Letter of Transmittal .................................................................................................... i-viii Organization Chart ....................................................................................................... IX List of City Officials . ............. ...................................................................................... X FINANCIAL SECTION: Independent Auditor's Report....................................................................................... 1 - 2 General Purpose Financial Statements: Combined Balance Sheet -All Fund Types and Account Groups.......................... 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances -All Governmental Fund Types and Expendable Trust Funds .. ................................. .............................. 4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual (Budget Basis) -General, Special Revenue and Debt Service Funds......................................................... 5 Proprietary Fund Type -Component Unit: Statement of Revenues and Expenditures and Changes in Fund Equity................................................................................................ 6 Statement of Cash Flows ................................................................................. 7 Notes To General Purpose Financial Statements.......................................................... 8 -33 Supplementary Information: Special Revenue Funds: Combining Balance Sheet................................................................................. 34 -35 Combining Statement of Revenues, Expenditures and Changes in Fund Balances.......................................................................... 36 -37 Debt Service Funds: Combining Balance Sheet................................................................................. 38 -39 Combining Statement of Revenues, Expenditures and Changes in Fund Balances........ .................................................................. 40 -41 Capital Projects Funds: Combining Balance Sheet................................................................................. 42 -43 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................... 44 -45 Trust and Agency Funds: Combining Balance Sheet................................................................................. 46 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Expendable Trust Funds.... ............................ 47 Statement of Changes in Assets and Liabilities -Agency Fund....................... 48 l. .'Y OF SAN ~FAEL,' CALIFORNL GENERAL PURPOSE FINAN€IAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 1996 TABLE OF CONTENTS (Continued) STATISTICAL SECTION: General Governmental Expenditures by Function ..................................................... .. General Governmental Revenues by Source ............................................................. .. Secured Property Tax Levies and Collections ............................................................ . Assessed Valuation of Taxable Property .................................................................... . Ratio of Net General Bonded Debt to Assessed Valuation and Net General Bonded Debt Per Capita ................................................................... . Ratio of Annual Debt Service to Total General Governmental Expenditures ......................................................................................................... . Computation of Direct and Overlapping Debt ............................................................ . Principal Taxpayers .................................................................................................... . Construction Activity .................................................................................................. . Schedule of Insurance in Force ................................................................................... . Miscellaneous Statistical Data .................................................................................... . Public Employees Retirement System Analysis of Funding Progress ........................ . PAGE NO. 49 50 51 52 53 54 55 56 57 58 59 -60 61 , . COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 1996 INTRODUCTORY SECTION CITY OF SAN RAFAEL, CALIFORNIA ( CITY OF December 31, 1996 MaYDr Albert..1. Bora ...... ' Council Mamba,.. Paul M . Cohen Barbara Heller CyrN. Miller Gary O . Phillipa Honorable Mayor, Members of the City Council and Citizens of San Rafael The comprehensive annual financial report of the City of San Rafael for the year ended June 30, 1996, is hereby submitted as mandated by both local ordinances and state statutes. These ordinances and statutes require that the City of San Rafael issue annually a report on its financial position and activity, and that this report be audited by an independent firm of certified public accountants. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner that presents fairly the financial position and results of operations of the various funds, account groups and component units of the City of San Rafael. The financial statements are prepared in accordance with generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB) and include the report of the independent certified public accounting firm, C.G. Uhlenberg & Co. LLP. The comprehensive annual financial report is presented in three sections: introductory, financial and statistical. The introductory section, which is unaudited, includes this letter of transmittal, an organizational chart and a list of the City of San Rafael principal elected and appointed officials. The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the independent auditors' report. The statistical section, which is unaudited, includes selected financial and demographic information, generally presented on a multi-year basis. The City of San Rafael is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the Office of Management and .,400 FIFTH AVE., P.O. SOX .,5.,560, SAN RAFAEL, CA 949.,5·.,560 FACSIMILE: 4.,5459·2242 T.O.O.: 4.,5485·3.,98 Budget's Circular A-128, Audits of State and Local Governments. Information related to this single audit are in a separately issued single audit report. The financial reporting entity includes all the funds and account groups of the primary government (i.e., the City of San Rafael), as well as all of its component units. Under criteria established by GASB, the San Rafael Redevelopment Agency, and the Child Development Lachkey Program are considered component uni~s and are combined in this report. The San Rafael Sanitation District is a component unit of the City of San Rafael and is discretely presented. The City provides municipal services required by statute or charter, namely: Fire, Police, Planning, Public Works, Recreation, Redevelopment, Library and General Administrative Services. GOVERNMENTAL STRUCTURE, LOCAL ECONOMIC CONDITION AND OUTLOOK The Mission San Rafael Archangel was founded in 1817; San Rafael was incorporated in 1874 and became a Charter City in 1913 by vote within the City. The City Council is comprised of five members of which four are elected at large to four year terms. The mayor is also elected separately to a four year term. The City currently has a land area of 22 square miles which includes 17 square miles of land and five of water and tide lands and has a population of 53,200. 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 trade, financial and industrial leader of Marin County. Recreational facilities are available in and around the San Rafael area. In addition to the City's cultural, park and recreational resources, there are other cultural and recreational resources which include Muir Woods, five State parks, the San Francisco area, Oakland and the nearby wine country attractions. San Rafael is a regional employment center with the majority of positions in the business service and high-tec sections. The number of jobs within the City exceeds the number of employed residents. In the years ahead, local governments again could be targets for fixing the State of California and the Federal government's budget woes. The State's desire to restructure state and local government is still a possibility and would have an impact on local revenues. The federal deficit also continues to be a inescapable reality. Consistent action from the state and federal government to slash local government revenues to balance their budgets is a reality that cannot be ii ignored. As state and federal revenues dry up, San Rafael will need to become more reliant on local revenue sources. Controlling Our Destiny -As in years past, many communities are fighting to finance their operating needs and infrastructure. This action is only the beginning of the burdens that have been thrust upon the City by other governments. In addition to reducing local government revenues, state and federal agencies continue to burden local agencies with mandated programs and legislative restrictions, for which fewer reimbursements are available each year. Currently there is much debate at the State level regarding the legality of unfunded mandated programs. For now, compliance is not yet an option. Given recent experience, it is clear that San Rafael must continue to work to control its own destiny. Fortunately, San Rafael is in a position to be proactive rather than reactive in responding to this difficult environment. City staff will be resolute in practicing prudent financial management and planning. Particular attention will be given to the City's master plans to ensure that they have sound financial support. Reliance upon sound financial principles will surely see the City through these current troubled times . The City is initiating a comprehensive Municipal Business System which includes a Cost Allocation Plan and Fee for Service analysis which will evaluate the services the City provides and will assure the City's capability to provide and to sustain the diverse level of City services and improvements. FINANCIAL INFORMATION The City's management team 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 should 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. We believe the City's internal accounting controls adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded. iii Budget Controls -The City 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. The department head is responsible for accomplishing goals within his or her functional area and monitoring the use of their budget allocation consistent with policies set by the City's Administration and Administrative Services departments. General Government -General governmental functions include the General Fund, Special Revenue funds, Debt Service funds and Capital Projects funds. Revenues for the general governmental functions totaled $46,928,140 in the 1995/96 fiscal year, an increase of $7,873,071 or 20 percent from the 1994/95 fiscal year. The increase in revenues can be attributed to subventions and grants, increased use of money and property, and increased taxes. San Rafael's primary governmental revenues are referred to as major revenue sources. They include: sales taxes, subventions and grants, property taxes and interest earnings. These major revenues accounted for 82 percent of all the City's general governmental revenues in the 1995/96 fiscal year. In contrast, non-major revenue sources, made up approximately 18 percent of fiscal year 1995/96 revenues. Non- major revenues tend to be much more under local control while the major revenue sources are generally independent of local government action. The amount of governmental revenues from the various sources and increase or decrease over last year are shown in the following schedule: Percent Increase Increase Percent (Decrease) (Decrease) Revenue Source Amount of Total from 1994/95 from 1994/95 Taxes & Special Assessments $26,276,480 56.0% $1,773,153 7.2% Licenses and Permits 1,151,547 2.5% 232,313 25.3% Fines and Forfeitures 422,250 0.9% 51,651 13.9% Uses of Money and Property 2,535,719 5.4% 639,998 33.8% Intergovernmental 9,958,206 21.2% 4,696,700 89.3% . Charges for Current Services 5,172,466 11.0% 577,556 12.6% Other Revenues 1.411,472 3.0% 98,3001 ( 6.5%1 $46,928,140 100.0% $7,873,071 20.2% iv Steady population growth in the community continues, increasing three percent from 51,600 in 1995 to 53,200 in 1996. Licenses and Permits, generated mostly from building permits, began to show some modest growth with a 25 percent increase from last year. Fines, forfeitures and fees increased by 14 percent due to an increase in encroachment permits and increased local ordinance violations. Charges for current services showed an increase of 12 percent over the past year due to increased demand for certain services. Increases or decreases in governmental funds' expenditures for major functions of the City compared to the prior year are detailed below: Percent Increase Increase Percent (Decrease) (Decrease) Amount of Total from 1994/95 from 1994/95 General Government $ 6,905,043 14.7% $1,830,858 36.1% Public Safety 16,365,089 34.9% 716,959 4.6% Public Works and Parks 10,781,451 23.0% 3,721,230 52.7% Community Development 2,054,557 4.4% 482,604 30.7% Culture and Recreation 4,427,669 9.5% 1,138,322 34.6% Other 175,971 0.4% 134,354 322.8% Capital Outlay 2,294,518 4.9% ( 1,088,479) ( 32.2%) Debt Service $ 3,837.491 8.2% ( 382,156) ( 9.1 %) $46 1 841 1 789 100.0% $6 1 553 1 692 16.3% Fund Balances -In order to assess the increase or decrease in each governmental fund's assets, their change in fund balance from June 30, 1995 to June 30, 1996 is discussed below. Fund balance or fund equity in governmental funds can be described as the difference between current assets and current liabilities, or accumulated earnings from operations. Simply stated, it is current spendable resources of the fund. The General Fund's change in fund balance was as follows: June 1995 1996 Increase General Fund $ 6,847,702 $ 7,904,861 $ 1,057,159 v The increase in the General Fund ending balance is due to the change in method of accounting for taxpayer assessed revenue in accordance with GASB Statement No. 22. The special revenue funds as a group increased in fund equity. The change in the special revenue funds' equity is detailed as follows: Percent Increase Increase June 30 (Decrease) (Decrease) Special Revenue Funds 1996 1995 from 1994/95 from 1994/95 Parking Services Fund $ 247,991 $ 274,833 ($ 26,842) 9.8% Recreation Revolving Fund ( 64,506) 64,506 (100.0%) Assessment District Fund 6,004 6,004 100.0% Gas Tax Fund 710,759 669,748 41,011 6.1% Childcare Fund 176,577 96,919 79,658 82.2% Equipment Replacement Fund 1,889,584 1,599,833 289,751 18.1% Special Revenue Fund 1,043,011 911,651 131,360 14.4% Miscellaneous Special Revenue Funds 2,034,978 975,778 1,059,200 108.5% Other Mitigation Funds 8,114,013 8,043,705 70,308 0.9% Grant Funds 20,232 72,019 51,787) ( 71.9%) Library Fund 2,877 33,104 30,227) ( 91.3%) Household Hazardous Facility Fund 5,350) 5,350) 100.0% Falkirk Grant Fund 39,791 ) 13,473) 26,318) 195.3% Traffic Mitigation Fund 241,830 229,868 11,962 5.2% Integrated On-Line Library System Fund 495 495 0.0% $14,443,210 $ 1 2,829,974 $ 1,613,236 12.6% Capital Projects Fund The deficit in a redevelopment district fund is by design. In order for the district to collect the tax increment the district must demonstrate the presence of debt. In the early years of the district, fund equity will be negative because funds borrowed from the General Fund are expended on redevelopment projects and debt is incurred. As projects are completed, future incremental property tax revenues generated from the increased property values on the projects are used to repay their debt. Cash Management -Income earned on investments represents a significant revenue source to the City and allows the City to operate effectively with fewer resources than would otherwise be required. The investment portfolio at June 3D, 1996 was comprised primarily of U.S. Agency notes, certificates of deposit, medium term corporate notes and pooled investments with the State of California's Local Agency Investment Fund. vi The City's investments are classified according to their respective credit risk. Purchases are made following the City's adopted investment policy. Securities must be rated "A" or better at the time of purchase. The majority of the portfolio's securities are "AAA" U.S. agency bonds with respect to third party safekeeping. Substantially, all of the City's investments were classified either as category 1, the safest risk category according to GASB 3 classifications, or were not categorized as to risk with respect to the State's investment pool, deferred compensation assets and investments agreements the City has entered into with various financial institutions to invest bond proceeds until funds are needed. City funds are pooled for investment yield purposes. Interest is returned to the various funds comprising the investment pool based on the fund's cash balance at the end of each quarter. The following is a comparison of the 1995/96 and 1994/95 accomplishments of the City's investment program: Annualized Funds Invested Realized Interest (Including gains and losses on sales) June 30, 1996 $38,304,809 4,666,271 June 30. 1995 $32,551,044 3,402,292 The increase is due to interest rate stabilization increased grants and the investments from the refunding of bond issues. General Fixed Assets -The general fixed assets of the City are those assets used in the performance of general government functions. As of June 30, 1996, the property and equipment is provided for assets capitalized in the general fixed assets account group. The book value at June 30, 1996 is $33,674,222. Risk Management Policies The City of San Rafael maintains a self-insured retention of $500,000 for general liability and participates in a public agency risk sharing pool, California Joint Powers Risk Management Authority, for an additional $9,500,000 in excess of $500,000. A third party claims administrator evaluates liability claims and makes recommendations to the City. vii ( The City's self-insured retention for workers compensation claims is $250,000 with excess coverage of $10,000,000 with National Union Insurance Company. The City contracts with a different third-party claims administrators for workers compensation claims. OTHER INFORMATION Independent Audit -An annual audit of the City's financial records and transactions by an independent certified public accounting firm is required by the Charter of the City of San Rafael. This year, the audit was performed by the accounting firm of C.G. Uhlenberg & Co. LLP. The requirement has been complied with and the auditors' opinion has been included in this report. Use of Report -the report is published to provide the Citizens of San Rafael, the Mayor and members of the City Council, investors and creditors and other interested persons, detailed information concerning the financial condition of the City government with particular emphasis placed on the utilization of resources during the past fiscal year. The report should assist in formulating policies and in conducting the City's day-to-day activities. The information is materially accurate, presented fairly and enables the reader to gain a complete understanding of the City's financial affairs. Acknowledgments -The preparation of this document could not have been accomplished without the diligent, dedicated services of the Administrative Services Department's staff. Expressed appreciation goes to the entire department who assisted in the report preparation. Thanks also goes to the Mayor and members of the City Council for their interest and support in planning and conducting the operations of the City in a responsible, progressive manner. Respectfully submitted, -~ Rod Gould City Manager viii ( OR '"ANIZATION CHAriT OF THE CITY OF SAN RAFAEL ELECTORATE CITY COUNCIL r------r------r---- r--I -, r-..l..-, ,_.l._, ----r------r------i ..1 I I PLANNING PARKS Ii I I CULTURAL I I COMMISSION I I RECREATION AffAIRS , \.. ___ J ,-C~~~.J ,-C~~~~ CITY PERSONNEL FINANCE POLICE PLANNING ---LINE ---ADVISORY ,--, ,---, r-:;--, I LIBRARY I I FIRE I I I!I OAR 0 I BOARD COMMISSION RE~~EW '-__ ~ '-___ J \.. ___ ....1 MANAGER PUBLIC WORkS ix RECREATION GENERAL SERVICES FIRE LIBRARY CITY OF SAN RAFAEL CITY COUNCIL Albert J. Boro -Mayor Paul M. Cohen -Councilman Barbara Heller -Councilwoman Cyr N. Miller -Councilman Gary O. Phillips -Councilman ELECTED OFFICIALS Gary T. Ragghianti -City Attorney Jeanne M. Leoncini -City Clerk CITY STAFF Rod Gould -City Manager David Bernardi -Public Works Director Daryl Chandler -Personnel Director Suzanne Golt -Assistant City Manager Clark (Gus) Guinan -Assistant City Attorney Jeanne M. Leoncini -City Clerk Robert Marcucci -Fire Chief Sharon McNamee -Recreation Director Ken Nordhoff -Director of Administrative Services Jake Ours -Redevelopment Director Bob Pendoley -Planning Director Gary Ragghianti -City Attorney Cam Sanchez -Chief of Police Vaughn Stratford -Library/Cultural Affairs Director x · . COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 1996 FINANCIAL SECTION CITY OF SAN RAFAEL, CALIFORNIA c. G. UHLENBERG & co. LLP CERTIFIED PUBLIC ACCOUNTANTS ROBERT E. BARSANTI, C.P.A. PEGGY H. CHEN, C.P.A. JEFFREY J. IRA, C.P.A. INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council of the City of San Rafael San Rafael, California We have audited the accompanying general purpose fmancial statements of the City of San Rafael, California (the City), as of and for the fiscal year ended June 30, 1996, as listed in the foregoing table of contents. These general purpose fmancial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose fmancial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget Circular A-128, Audits of State and Local Governments. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the fmancial position of the City of San Rafael, California, at June 30, 1996, and the results of its operations for the fiscal year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated September 6, 1996 on our consideration of the City of San Rafael's internal control structure and a report on September 6, 1996 on its compliance with laws and regulations. Our audit was made for the purpose of forming an opinion on the general purpose fmancial statements taken as a whole. The accompanying combining and individual fund and account group statements and schedules listed in the table of contents are presented for purposes of additional analysis and are a required part of the general purpose financial statements of the City of San Rafael. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 647 Veterans Boulevard, Redwood City, CA 94063 Phone (415) 365-2323 • (408) 733-9944 • (510) 353-0330 Fax (415) 365-8394 ( The statistical infonnation listed in the table of contents was not audited by us and, accordingly, we do not express an opinion thereon. ~.d September 6, 1996 Redwood City, California 2 ASSETS AND OTIlER DEBITS Cash and inveslmenls (Nole 2) Cash wilh fiscal agenl (Nole 2) Restricled cash Accounls receivable (Nole 3) Assessmenls receivable Loans receivable (Nole 7) Inleresl receivable Due from olher funds (Nole 6) Prepaid expenses Olher currenl assels General fixed assels (Nole 4) Componenl unil fixed assels -nel COP issuance cosls -nel Amounl available in debl service funds Amounl 10 be provided for reliremenl of: Generallong-Ierrn debl Vacalion and sick leave obligalions TOTAL ASSETS AND OTIlER DEBITS L~B~ITffiSANDFUNDEQUITY L~~ITffiS: Accounls payable Conneclion fees payable Inleresl payable Due 10 olher funds (Nole 6) Deferred compensalion payable (Nole 14) Deposils Deferred revenue Capital leases (Nole 8) Compensaled absences (Nole 5) Certificales of participalion Bonds payable (Nole 5) Tolal Liabilities FUND EQUITY : Investment in general fixed assels Conlribuled capital Relained earnings Reserved Unreserved Total Retained Earnings Fund Balances (Note 9): Reserved Unreserved: Designated Undesignated Total Fund Balances Tolal Fund Equity TOTAL LIABILITIES AND FUND EQUITY CITY OF SAN RAFAEL, CALIFORNIA COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1996 GOVERNMENTAL FUND TYPES SPECIAL DEHT---CAPITAL FIDUCIARY FUND TYPES EXPENDABLE TRUST AND ACCOUNT GROUPS GENERAL GENERAL PRIMARY REPORTING GOVERNMENT ENTITY TOTALS TOTALS (MEMORANDUM COMPONENT (MEMORANDUM GENERAL REVENUE SERVICE PROJECTS AGENCY FIXED ASSETS LONG-TERM DEBT ONLY) UNIT ONLY) S5,702,738 2,827,747 329,059 40,000 S8.899.544 S 994,683 994.683 2,031,721 SI3,949,804 SI,201,654 $20,488,441 S7,791,614 S 1,451,470 1,731,970 6,040 1,550,851 200,000 297,757 235,122 756,623 33,674,222 $15,881.774 S4.960,598 S21.027.360 S7.791,614 $33,674,222 $ 1,366,064 40,000 32,500 $ 1,550,851 S 301,721 $ 2,079 s 7,348,352 S $ 49,134,251 $ 551,379 S 49,685,630 1,451,470 1,451,470 1,471,475 1,471,475 4,565,757 4,565,757 1,550,851 1,550,851 497,757 497,757 564,181 1,776 565,957 40,000 40,000 756,623 17,722 774,345 1,595 1,595 33,674,222 33,674,222 21,837,256 21,837,256 60,335 60,335 3,409,747 3,409,747 3,409,747 30,572,843 30,572,843 30,572,843 2,777,269 __ 2,77V69 2,777,269 $36.759.859 S 39,867 2,777,269 S 128.994.971 S 2,664,547 40,000 7,348,352 32,500 1,550,851 39,867 2,777,269 S23.941.538 $ 78,794 22,000 132,031 4,595,794 33,942,723 33,942,723 140,000 $ 152.936.509 • S 2,743,341 . 22,000 132,031 40,000 7,348,352 32,500 1,550,851 39,867 2,777,269 4,595,794 34.082.723 1,438,564 1.550.851 301.721 7,350,431 36,759,859 48,396,109 4,968,619 53,364,728 33,674,222 33,674,222 4,454,412 3,396,046 18,998,937 441,183 29,322,299 8,607,514 33,674,222 8,607,514 116,084 116,084 10,249,321 10,249,321 10,365,405 10,365,405 29,322,299 8,872,606 13,701 1,726,702 10,613,009 10,613,009 5,873,140 1,116.192 6.989.332 6,989.332 7,904,861 14,443,210 3.409,747 20,725.639 44 I, I 83 46,924,640 46,924,640 7.904.861 14,443,210 3,409,747 20,725.639 441,183 33,674,222 80.598,862 18.972.919 99,571,781 S8.899.544 SI5.881.774 S4.960.598 S21.027,360 S7 ,79 I ,614 533,674,222 S36,759,859 S 128,994,97 I S23,94 I ,538 5 I 52,936,509 Sec accompanying noles 10 general purpose financial stalemenls. 3 - CITY OF SAN RAFAEL, CALIFORNIA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS REVENUES: Taxes and spccial asscssmcnts Liccnscs and pcnnits Fincs and forfeitures Uscs of money and propcrty Intcrgovcrnmcntal Charges for current serviccs Othcr revcnues Total Revcnucs EXPENDITURES: Current: Gcneral government Public safcty Public works and parks Community dcvelopment Culturc and rccrcation Other Capital Outlay Debt Servicc: Principal rctircmcnt Intercst and fiscal chargcs Total Expcnditurcs EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfcrs -Out Bond procecds Bond issuancc cost GENERAL $21,511,238 639,770 422,250 475,514 3,775,002 1,956,579 224.629 29.004.982 4,506,273 16,329,751 6,006,839 1,613,139 170,931 28.626.933 378.049 1,076,867 (1,593,389) FOR THE FISCAL YEAR ENDED JUNE 30, 1996 GOVERNMENTAL FUND TYPES SPECIAL REVENUE DEBT SERVICE CAPITAL FIDUCIARY FUND TYPES EXPENDABLE TRUST TOTALS (MEMORANDUM ONLY) $ 531,890 $3,322,909 $ 910,443 $ $26,276,480 511,777 1,151,547 422,250 801,624 105,780 1,152,801 22,280 2,557,999 6,182,637 567 9,958,206 3,215,887 5,172,466 1.092.667 436 93.740 59.593 1.471.065 12.336,482 3.429,125 _____ 2.157,551 81,873 47,010,013 1,240,197 35,338 4,774,612 2,814,530 175,971 1,422,680 10.463.328 1.873.154 174,629 (434,547) 1,807,000 2.030.491 3.837.491 1,158,573 2,054,557 700,907 3.914.037 37,680 51,278 843 89.801 6,942,723 16,365,089 10,781,451 2,105,835 4,428,512 175,971 - 2,294,518 1,807,000 2.030.491 - 46.931.590 (408,366) (1.756.486) (7.928) 78.423 234,192 902,431 2,388,119 (125,991) (234,192) (2,388,119) 8,895,000 8,895,000 (274,517} (274.517) Total Other Financing Sources (Uses) (516.522) (259.918) 108.201 9.288.722 8.620.483 EXCESS (DEFICIENCy) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (138,473) FUND BALANCES AT BEGINNING 1,613,236 (300,165) 7,532,236 ., ..,nn n1"'1 11 1n., An., OF YEAR -RESTATED (NOTE 19) 8.043.334 12.829.974 J.IV7.71L IJ.17J."tvJ 11'''1 .tnn "'7 A "'7 lI""'In ..,..,r r"1n FUND BALANCES AT END OF YEAR $ 7.904.861 $14.443.210 oDJ."V7. I .. 1 oD LV. ILJ.U.:J7 Sec accompanying noles 10 general purpose financial sIal em en Is. 4 (7,928) 8,698,906 449.111 38.225,734 $441.183 $46.924.640 - CITY OF SAN RAFAEL, CALIFORNIA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL (BUDGET BASIS) GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS ' REVENUES: Taxes and special assessments Licenses and pennits Fines and forfeitures Uses of money and property Intergovernmental Charges for current services Other revenues Total Revenues EXPENDITURES: Current: General government Public safety Public works and parks Culture and recreation Other Capital Outlay Debt Service: Principal retirement Interest and fiscal charges Total Expenditures BUDGET $ 20,940,000 443,000 455,000 325,000 3,483,000 1,667,000 200.000 27.513.000 4,149,201 16,340,428 6,018,275 1,532,898 444,255 28.485.057 FOR THE FISCAL YEAR ENDED JUNE 30,1996 GENERAL FUND SPECIAL REVENUE FUNDS ACTUAL VARIANCE ACTUAL VARIANCE {BUDGET FAVORABLE {BUDGET FAVORABLE BASIS) (UNFAVORABLE) BUDGET BASIS) (UNFAVORABLE) $ 21,456,335 $ 516,335 $ $ 531,890 $ 531,890 639,770 196,770 510,000 513,230 3,230 429,762 (25,238) 441,172 116,172 44,000 801,624 757,624 3,313,656 (169,344) 1,086,480 5,153,396 4,066,916 1,931,627 264,627 2,469,849 3,217,708 747,859 201.147 1.147 1,082.731 1.082.731 28.413.469 900,469 4.110.329 11,300.579 7.190.250 4,470,727 (321,526) 608,490 1,225,478 (616,988) 16,198,269 142,159 15,860 37,088 (21,228) 5,959,439 58,836 6,003,200 3,570,216 2,432,984 1,600,150 (67 ,252) 1,078,573 2,773,012 (1,694,439) 529,236 (529,236) 169,555 274,700 5,791,408 1,370,257 4,421,151 28.398.140 86.917 13.497.531 9,505.287 3.992.244 DEBT SERVICE FUNDS ACTUAL VARIANCE (BUDGET FAVORABLE BUDGET BASIS) (UNFAVORABLE) $1,416,346 $3,322,909 $ 1,906,563 608,000 105,780 (502,220) 436 436 2.024.346 3.429.125 1.404.779 960,000 1,807,000 (847,000) 1.055.346 1.824.051 (768.705) 2.015.346 3.631.051 (1.615.705) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (972.057) 15.329 987.386 (9.387.202) 1.795.292 11.182.494 9.000 (201.926) (21O.926) OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ (972.057) FUND BALANCES AT BEGINNING OF YEAR -RESTATED (NOTE 19) ADJUSTMENTS TO BUDGETARY BASIS FUND BALANCES AT END OF YEAR 1,076,867 1,076,867 174,629 174,629 234,192 234,192 (1,593,389) (1.593,389) (434 .547) (434,547) (125,991) (l25.99 I ) (516.522) (516.522) (259.918) (259.918) (501.193) 8,043,334 362.720 $ 7.904.861 $ 470.864 $ (9.387.202) 1,535,374 12,829,974 77.862 $14.443 .210 See accompanying nOles 10 general pU'l'ose financial slalemenls. 5 $10.922.576 $ 9 .000 108.201 (93,725) 3,709,912 (206.440) $3.409.747 108.201 $ 002.725) CITY OF SAN RAFAE:t, CALIFORNIA PROPRIETARY FUND TYPE -COMPONENT UNIT STATEMENT OF REVENUES AND EXPENDITURES AND CHANGES IN FUND EQUITY FOR THE FISCAL YEAR ENDED JUNE 30, 1996 OPERATING REVENUES: Sewer charges Connection fees Total Operating Revenues OPERATING EXPENSES Sewage collection Sewage treatment Depreciation and amortization General and administrative Total Operating Expenses NON-OPERATING REVENUES (EXPENSES): Property taxes Special assessments -Bayside Acres Aid from governmental agencies Interest income Interest expense Other non-operating revenues Total Non-operating Revenues (Expenses) Net Income (Loss) Add: depreciation expense on assets acquired by contributed capital Increase in retained earnings Retained earnings -beginning of year (as restated) Retained earnings -end of year Contributed capital -beginning of year Less: depreciation expense accumulated Contributed capital -end of year $ 3,771,822 39,047 3.810,869 1,633,116 1,747,296 679,365 165,340 4.225,117 378,904 52,155 31,612 74,555 (329,026) 1.290 209,490 (204,758) 286,478 81,720 10.283,685 10.365,405 8,893,992 (286,478) 8.607.514 Total Fund Equity $18.972,919 See accompanying notes to general purpose financial statements. 6 CITY OF SAN RAFAEL, CALIFORNIA PROPRIETARY FUND TYPE -COMPONENT UNIT STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED JUNE 30, 1996 OPERATING ACTIVITIES: Operating loss Adjustments to reconcile operating loss to net cash provided from operating activities: Depreciation and amortization Changes in current assets and liabilities: (Increase) decrease in: Prepaid expenses and other current assets Increase (decrease) in: Accounts payable and other current liabilities Net Cash Provided from (Used In) Operating Activities NON CAPITAL FINANCING ACTIVITIES: Property taxes Aid from governmental agencies Net Cash Provided from Noncapital Financing Activities CAPITAL FINANCING ACTIVITIES: Additions to collection systems and facilities Proceeds from sale of fixed assets Special assessments -Bayside Acres Interest received from certificates of participation principal cash Principal payments on certificates of participation Interest paid on certificates of participation Principal payments on Bayside Acres coupon bonds Interest paid on Bayside Acres coupon bonds Net Cash Used in Capital Financing Activities INVESTING ACTIVITIES: Interest received from Marin County pooled cash and investments account Net Cash Provided from Investing Activities Net Decrease in Cash and Cash Equivalents Cash and Cash Equivalents -Beginning of Year Cash and Cash Equivalents -End of Year $ (414,248) 679,365 (1,630) (235,339) 28,148 378,904 31,612 410,516 (888,230) 1,290 52,155 23,499 (170,000) (312,285) (26,000) (7,982) (1,327,553) 51,283 51.283 (837,606) 2,860.460 $ 2,022.854 See accompanying notes to general purpose financial statements. 7 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of San Rafael (the City) have been prepared in confonnity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. A. REPORTING ENTITY The City maintains a Council-Manager fonn of government and provides the following services: public safety (police and fire), public works, community development, library, parks, recreation, and general administrative services. As required by generally accepted accounting principles, these financial statements present the City (the primary government) and its component units. Component units generally are legally separate entities for which a primary government is financially accountable. Financial accountability ordinarily involves meeting both of the following criteria set forth in GASB Statement No. 14; the primary government is accountable for the potential component unit, and the primary govemment is able to impose its will upon the potential component unit, or there is a possibility that the potential component unit may provide specific financial benefits or impose specific fmancial burdens on the primary government. The component units discussed in this note are included in the City's reporting entity because of the significance of its operational or financial relationships with the City. Each blended component unit has a June 30 year end. Blended Component Units: City of San Rafael Redevelopment Agency The City of San Rafael Redevelopment Agency (the Agency) was established pursuant to California Community Redevelopment Laws and is reported as if it were part of the primary government because the City Council has a continuing oversight responsibility for the Agency. The oversight responsibility is detennined on the basis of budget adoption, taxing authority, funding and appointment of the governing board. The Agency's assets, liabilities, revenues and expenditures (other than those applicable to its fixed assets and long ternl debt) are blended into the Capital Projects Funds and Debt Service Funds. The Agency's fixed assets are included in the General Fixed Assets Account Group. The Agency's long-tenn debts are blended into the General Long-Tenn Debt Account Group. Separately issued component unit fmancial statements can be obtained at the City of San Rafael, Finance Department, 1400 Fifth Avenue, San Rafael, Califomia 94915. 8 L1TY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 City of San Rafael Joint Powers Financing Authority The City of San Rafael Joint Powers Financing Authority (the Financing Authority) was created by the City of San Rafael and the Agency pursuant to Articles 1 and 2 of Chapter 5 of Division 7 of Title 1 of the Govenunent Code of the State of California for the purpose of assisting the financing and refinancing of certain redevelopment activities of the Agency. All of the Financing Authority's assets, liabilities, revenues and expenditures are blended into the Capital Projects Funds and the Debt Service Funds. The Financing Authority's long-term debts are blended into the General Long- Term Debt Account Group. Discretely Presented Component Unit: San Rafael Sanitation District The San Rafael Sanitary District (the 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 of San Rafael and adjacent unincorporated areas. The City contracts with the District to maintain the collection systems in the 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 of San Rafael appoints two out of the three board members and has the ability to remove the two board members at will. The activities of the District are accounted for in a single enterprise fund. The District's assets, liabilities, revenues, expenses, results of operation and cash flows are discretely presented on the City's general purpose fmancial statements. B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Funds and Account Groups -The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity with its own self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. These funds and accounts are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions or limitations. Govenunent resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. 9 t.:ITY OF SAN RAF AE'L , CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 The various funds are grouped in the financial statements in this report into categories as follows: Governmental Funds • The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. • Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally or administratively restricted to expenditures for specified purposes. • Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. • Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. Fiduciary Funds • Expendable Trust Funds are accounted for in the same manner as governmental funds. (All trust funds of the City of San Rafael are classified as expendable.) • Agency Funds are custodial in nature and do not involve the measurement of the results of operations. They are used to account for monies received by the City of San Rafael as an agent for individuals, other governments and other entities. Account Groups • The General Fixed Assets Account Group is used to maintain control and cost information on capital assets acquired to perform general government functions. • The General Long-Term Debt Account Group is used to record the unmatured principal of tax allocation bonds, special assessment bonds, notes, compensated absences, the principal amount of future lease payments due under lease purchase agreements and other long-teml liabilities. 10 <..:ITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 C. MEASUREMENT FOCUS All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets . D. BASIS OF ACCOUNTING All governmental funds, expendable trust funds and agency funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become susceptible to accruals, that is, when both are measurable and available. "Measurable" means the amounts of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Accrued revenues include property taxes, sales taxes, transient occupancy taxes, gas tax, franchise fees, interest and grants. Grant revenues which are received as reimbursement for specific purposes or projects, are recognized based upon when the related expenditures are recorded. Grant revenues which are virtually unrestricted as to purpose and revocable only for failure to meet prescribed compliance requirements are reflected as revenues at the time of receipt or earlier if availability criterion are met. Licenses, fines and penalties and other revenues are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment earnings are accrued since they are measurable and available. Expenditures under the modified accrual basis of accounting are recognized when the related fund liability is incurred, except for principal and interest on general long-term obligations which are recognized when due. Liabilities expected to be paid after the current period are recorded in the General Long-Term Debt Account Group. Agency-type funds are custodial in nature (assets equal liabilities) and thus do not involve measurement of results of operations. E. BUDGETS AND BUDGETARY ACCOUNTING The City annually adopts a budget for its general fund (excluding certain workers' compensation and liability claims) and certain special revenue and debt service funds to be effective July 1 for the ensuing fiscal year. 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. The City Manager I I CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1996 is authorized to transfer budgeted amounts between accounts, departments or funds; the Council must approve any increase in the City's total budget. Several supplemental appropriations were approved during the course of the year. All unencumbered appropriations lapse at year end. The City also adopts budgets annually for its capital projects funds. Such budgets are based on a project time frame, rather than a fiscal year "operating" time frame, reappropriating unused appropriations from year to year until project completion. The City does not adopt budgets for trust and agency funds, certain special revenue grant funds, the special revenue equipment replacement fund, special assessment debt service funds and special assessment capital projects funds. The City's budget is adopted on the cash basis of accounting for certain transactions. The results of operations are presented in the budget and actual comparison statement in accordance with the budgetary process (budget basis) to provide a meaningful comparison to budget. The results of actual operations on a budgetary basis are reconciled to the results of operations on a generally accepted accounting principles (GAAP) basis by fund type as follows: Special Debt General Revenue Service Excess (Deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (budget basis) $ (501,193) $ 1,535,374 $ (93,725) Adjustments arising from differences between cash basis and modified accrual basis 362,720 77,862 (206.440) Excess (Deficiency) of revenues and other fmancing sources over (under) expenditures and other financing uses (GAAP basis) $ (138.473) $ 1,613,236 $ (300,165) Supplemental appropriations for the fiscal year ended June 30, 1996, were as follows: Original Supplemental Amended Fund Budget Appropriations Budget General Fund $ 28,467,031 $ 18,026 $ 28,485,057 Special Revenue Funds 12,686,746 810,785 13,497,531 Debt Service Funds 2,015,346 2,015,346 12 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Encumbrance accounting, under which purchase orders, contracts and other commitments for expenditures are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of the budgetary process. F. INVESTMENTS Investments are stated at cost except for investments of the Deferred Compensation Plan Agency Fund, which are stated at current (market) value. When market values decline below cost, no loss is recorded if such declines are considered temporary. The City's policy is to hold investments until maturity or until market values equal or exceed cost. However, if the liquidity needs of the City were to require that investments be sold at a loss subsequent to year end, the decline in value would be recorded as a loss at the fiscal year end. G. RESTRICTED CASH AND INVESTMENTS Certain proceeds of various special assessment bonds, as well as certain resources set aside for their repayment, are classified as restricted cash and investments on the balance sheet because their use is limited to debt service by applicable bond covenants. H. GENERAL FIXED ASSETS General Fixed assets are recorded as expenditures of the various governmental funds at the time of purchase and are subsequently capitalized for memorandum purposes in the General Fixed Asset Account Group. Such assets include land, buildings, building improvements, furniture and equipment. The costs of roads, streets and sidewalks, bridges, curbs and gutters, drainage systems, lighting systems and similar assets are not capitalized. No depreciation is provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair market value on the date donated. Fixed assets acquired by lease obligations are valued at the present value of future lease payments at the inception of the lease. 1. ACCUMULATED UNP AID VACATION AND SICK LEAVE The City accounts for compensated absences (unpaid vacation, sick leave, compensatory time and administrative leave) expected to be currently payable as accrued payroll and benefits liability in the governmental funds to which they relate. The balance of the earned and vested, but unused, compensated absences expected to 13 L'ITY OF SAN RAFAEL. CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 be paid subsequent to June 30, 1996, is recorded in the General Long-Term Debt Account Group. Sick pay vesting was discontinued for employees hired after 1978. No expenditure was recorded for these amounts. J. APPROPRIATION LIMITATIONS Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from proceeds of taxes. For the fiscal year ended June 30, 1995, based on calculations by City's management, proceeds of taxes did not exceed related appropriations. Further, Section 5 of the Article XIIIB allows the City to designate a portion of fund balance for general contingencies to be used for any purpose. K . PROPERTY TAX LEVY COLLECTION AND MAXIMUM RATES - The State of California (State) Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed one percent 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 two percent per year unless the property is sold, transferred or improved. The State Legislature has determined the method of distribution of receipts from a one percent tax levy among the counties, cities, school districts and other districts. Marin County assesses, bills for and collects property taxes as follows: Lien dates Levy dates Due dates Delinquency as of March 1 July 1 Secured 50% on November 1 50% on February 1 December 10 (for November) April 10 (for February) Unsecured March 1 July 1 July 1 August 31 The term "unsecured" refers to taxes on personal property other than real estate, land and buildings . These taxes are secured by liens on the property being taxed . 14 <--tTY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Property taxes levied are 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 authorizes 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: 50% remitted on December 15 45% remitted on April 15 5% remitted on June 15 L. TAXPAYER-ASSESSED TAXES ACCRUAL In accordance with Governmental Accounting Standards Board (GASB) Statement No. 22, the City recognizes taxpayer-assessed taxes in Governmental Funds as follows: Sales Taxes -The City accrues actual advances from the State Board of Equalization received in July and August of the subsequent fiscal year as these amounts are both measurable and available to the City to meet its financial obligations for the current period. Public Safety Sales Tax (Proposition 172 Sales Tax) -The City accrues July and August receipts of the public safety sales tax on the basis consistent with the accrual of regular sales taxes. Transient Occupancy Taxes -The City collects transient occupancy taxes on a quarterly basis. The taxes assessed for the quarter ended June 30 are due by July 31 of the subsequent fiscal year. The City accrues all transient occupancy taxes received in the quarter subsequent to the fiscal year end. Gas Taxes -The City accrues gas taxes assessed for the month ended June 30 as these amounts are both measurable and available to the City a month after the fiscal year end. Franchise Fees -The City collects franchise fees on a quarterly basis. The taxes assessed for the quarter ended June 30 are due by July 31 of the subsequent fiscal year. The City accrues all franchise fees received in the quarter subsequent to the fiscal year end. 15 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 M. CLAIMS AND JUDGMENTS Claims and judgments are accounted for in the General Fund in accordance with Governmental Accounting Standards Board (GASB) Statement No. 10, which requires that expenditures for claims be recognized when it is probable that the liability has been incurred and the amount of the loss can be reasonably estimated. N. "TOTALS (MEMORANDUM ONLY)" INFORMATION Columns on the accompanying combined financial statements captioned "Totals (Memorandum Only)" do not present consolidated financial information. They are not necessary for a fair presentation of the financial statements, but are presented as additional analytical data. Interfund eliminations have not been made in the aggregation of this data. 2. CASH AND INVESTMENTS Cash balances from all funds are combined and invested to the extent possible pursuant to the City Council approved Investment Policy and Guidelines and California Government Code. The earnings from these investments are allocated quarterly to each fund based on an average of quarterly opening and closing balances of cash and investments. Investments are stated at cost except for those of Deferred Compensation Plans which are shown at the current market value. The market value information is provided as quoted on June 30, 1996. This is for information only (except for Deferred Compensation Plans) to assess the actual value if the City were to liquidate the investments before maturity. The City has no such intentions and will hold the investments to maturity. 16 CITY OF SAN RAFAEL. CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Authorized Investments: Authorized investments per the City's Investment Policy and Section 53601 of the California Government Code are: Mutual Funds Composed Entirely of U.S. Governmental Securities or other allowable investments Negotiable Certificates of Deposit U.S. Government Securities Bankers Acceptances Commercial Paper Medium-Term Corporate Notes California Local Agency Investment Fund (LAIF) California Arbitrage Management Trust (CAMT) Repurchase Agreements Federal Agency Obligations: Federal Intermediate Credit Bank Debentures (FICB) Federal Land Bank Bonds (FLB) Federal Home Loan Bank Notes and Bonds (FHLB) Federal National Mortgage Association Obligations (FNMA) Small Business Administration Obligations (SBA) Government National Mortgage Association Obligations (GNMA) Tennessee Valley Authority Notes (TVA) Student Loan Association Notes (SALLIE MAE) California Local Agency Investment Fund (LAIF): The LAIF is a special fund of the California State Treasury through which local governments may pool investments. Each city or agency may invest up to $20,000,000 in the fund. Investments in LAIF are highly liquid, as deposits can be converted to cash within 24 hours. California Arbitrage Management Trust (CAMT): The CAMT is a non-taxable investment fund under provisions of the California Joint Exercise of Powers Act to provide California Public Agencies with comprehensive investment management, accounting and arbitrage rebate calculation services for proceeds of tax-exempt financing. The CAMT currently provides two short-term investment portfolios, a segregated portfolio and a cash reserve portfolio. 17 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Cash and investments at June 30, 1996, consisted of the following: Cash: Demand accounts at banks Petty cash Cash with Fiscal Agent Investments: Medium-Term Notes U. S. Agency Securities Investments with Fiscal Agent Restricted cash on deposit with bank trust departments - Deferred Compensation California Local Agency Investment Fund California Arbitrage Management Trust Total Cash and Investments Cash Market Value $ 60,926 $ 60,926 6,700 6,700 78,455 78,455 4,460,308 4,485,500 20,392,133 20,319,158 1,373,015 1,373,015 7,348,352 7,348,352 13,288,368 13,288,368 3,577,464 3,577,464 $ 50,585,721 $ 50,537,938 The distribution of these monies by funds was as follows: Funds: General Special Revenue Debt Service Capital Projects Fiduciary TOTAL Pooled Deposits/Credit Risk $ 5,702,738 13,949,804 2,653,124 20,488,441 7,791,614 $ 50,585,721 All pooled certificates of deposit and bank balances are entirely insured or collateralized. The California Government Code requires California banks and savings and loan associations to secure an agency's deposits by pledging government securities as collateral. The market value of the pledged securities must equal at least 110% of an agency's deposits. California law also allows financial institutions to secure local agency deposits by pledging first trust deed mortgage notes leaving a value of 150% ofa local agency's deposits. 18 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 The City may waive collateral requirements for deposits which are fully insured up to $100,000 by the Federal Deposit Insurance Corporation (FDIC) or the Federal Savings and Loan Insurance Corporation (FSLIC). Three categories of risk level have been developed by the Government Accounting Standards Board (GASB) Statement No. 3 to disclose the various risk associated with deposits and investments of public money: Category 1 -insured or collateralized with securities held by the City or its agent in the City's name. Category 2 -collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. CategorY 3 -uncollateralized or collateralized with securities held by the pledging financial institution's trust department or agent but not in the City's name. Credit Risk. Carrying Amount and Market Value ofInvestments Investments made by the City are classified as to credit risk by three categories, as follows: Category 1 -insured or registered, or securities held by the City or its agent in the City's name. Category 2 -insured or registered, with securities held by the counterparty's trust department or agent in the City's name. Category 3 -insured or registered, with securities held by the counterparty, or by its trust department or agent but not in the entity's name. Investments in pools managed by other governments or in mutual funds are not required to be categorized pursuant to GASB Statement No.3. 19 LITY OF SAN RAFAEL, CALIFORNiA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Catego!:y 2 3 Deposits Pooled Deposits Demand Accounts: Bank balances $200,000 $ 668,601 $ Deposits in transit Outstanding checks Petty cash Book balance 200,000 668,601 Deposits with Fiscal Agents Cash with Marin County 78,455 Total Deposits $200,000 $ 668,601 $ 78,455 Category Carrying 2 3 Amount Investments Pooled Investments Medium-Term Notes $ 4,460,308 $ $ $ 4,460,308 U. S. Agency Securities 20,392,133 20,392,133 California Local Agency Investment Fund * 13,288,368 California Arbitrage Management Program * 3,577,464 Total Pooled Investments 24,852,441 41,718,273 Investments with Fiscal Agents: Mutual Funds * (I) 8,721,367 Total Investments $ 24,852,441 $ $ $ 50,439,640 * Not subject to categorization (I) Includes deferred compensation plan investment Carrying Amount $ 868,601 336,514 (1,144,189) 6,700 67,626 78,455 $ 146,081 Market Value $ 4,485,500 20,319,158 13,288,368 (2) 3,577,464 41,670,490 8,721,367 $ 50.391,857 (2) At June 30, 1996, market value of LAIF was $26,851,615,144. The city's proportionate share of the value is $13,295,729. Included in LAIF's investment portfolio are certain derivative securities or similar products in the form of structured notes totaling $1,100,720,000. LAIF's (and the City's) exposure to risk (credit, market, or legal) is not currently available. 20 CiTY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 3. ACCOUNTS RECEIVABLE Accounts receivable at June 30, 1996, consisted of the following: General Special Revenue Capital Projects Fund Funds Funds Property taxes $ 833,487 $ $ Sales taxes 1,046,612 Transient occupancy taxes 204,471 Franchise fees 83,590 Charges for services 90,522 Intergovernmental 506,291 1,704,965 Other receivables 62,774 27,005 6,040 TOTAL $ 2,827,747 $ 1,731,970 $ 6,040 4. FIXED ASSETS Totals $ 833,487 1,046,612 204,471 83,590 90,522 2,211,256 95,819 $4,565,757 A summary of changes in general fixed assets for the fiscal year ended June 30, 1996 is as follows: Land and buildings Rolling equipment Furniture and equipment Improvements other than buildings Investment in general fixed assets Balance at July 1, 1995 $20,404,436 4,503,398 4,703,695 3,286,732 $ 32.898.261 21 Additions $ 876,536 434,216 210,888 $1.521.640 Deletions $550,000 118,312 77,367 $745.679 Balance at June 30, 1996 $20,730,972 4,819,302 4,837,216 3.286,732 $33,674.222 CITY OF SAN RAFAE:t, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 5. LONG-TERM DEBT The City records long-term debt of governmental funds in ·the General Long-Term Debt Account Group. Other governmental fund obligations not expected to be financed with current available financial resources are also recorded in the general long-term debt account group. Long-term debt outstanding at June 30, 1996 was as follows: Interest Authorized Outstanding Maturitv Rates and Issued June 30, 1996 San Rafael Redevelopment Agency Tax Allocation Bonds: Series 1992 2017 3.25 -6.45 18,615,000 $ 16,770,000 Series 1995 2021 4 .00 -6.00 8,895,000 8,575,000 Total Tax Allocation Bonds 25,345,000 Special Assessment Bonds (with governmental commitment) Lucas Valley 1998 5.50 -5.75 217,393 48,000 Sun Valley 2006 5.50 -8.50 357,326 206,000 Northgate/Civic Center - Refunding 2011 5.25 -7.60 3,365,000 2,935,000 Kerner Boulevard Refunding 2005 5.75 -8.00 6,445,000 2,995,000 Peacock Gap Refunding 2005 4.00 -4.75 2,405,000 1,960,000 Mariposa Road Assessments 2008 4.50 -6.90 233,688 195,000 Total Special Assessment Bonds (with governmental commitment) 8,339.000 Note payable 2025 8.00 169,000 Accrued interest on note payable 89,723 Total Note Payable 258.723 Total Long-term Debt $ 33,942,723 22 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Long-term debt transactions during the fiscal year ended June 30, 1996 was as follows: Tax Special Liability Vacation and Allocation Assessment Note Lease Sick Leave Bonds Bonds Payable Total Debt Purchases Obligations Balance at July I, 1995 $17,740,000 $8,856,000 $169,000 $26,765,000 $61,307 $2,084,467 Additions: Bond issues 8,895,000 8,895,000 Accrued interest 89,723 89,723 Vacation and sick leave obligations (net) 692,802 Retirements: Principal repayments 1.290.000 517.000 1.807.000 21.440 Balance at June 30, 1996 $25.345.000 $8.339.000 $258.723 $33.942.723 $39.867 $2.777.269 Debt service requirements, including interest, follows: Tax Special Liability Allocation Assessment Note Lease Bonds Bonds Payable Purchases Totals Year Ending June 30: 1997 $ 2,054,834 $ 1,594,243 $ $22,778 $ 3,671,855 1998 2,052,192 1,588,790 20,380 3,661,362 1999 2,057,435 1,591,980 3,649,415 2000 2,050,285 1,566,014 3,616,299 2001 2,055,640 1,565,827 3,621,467 Thereafter 37.168.175 6.484.959 642.200 44.295.334 Total $ 47.438.561 $14.391.813 $642.200 $43.158 $62.515.732 The City is "obligated in some manner" (as defined by GASB Statement No.6) for special assessment debt (1) because the City must cover delinquencies of special assessment bonds with other resources until foreclosure proceeds are received or (2) because the City has been indicated that it may do so. Long-tenn debt does not include special assessment debt issued under the 1911 Bond Act as the City is not liable in any manner for repayment. The County of Marin acts as the City's agent for property owners in collecting the assessments and forwarding the collections to bondholders. The outstanding balance of the 1911 Bond Act as of June 30, 1996, was $54,017. At June 30, 1996, the other long-term debt consisted of a $169,000 promissory note bearing interest at 8% with principal and accrued interest due and payable in November 2024. The note was assumed to finance the purchase of certain property by the Redevelopment Agency. Accrued interest at June 30,1996, was $89,723. 23 LITY OF SAN RAFAE~, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 6. DUE FROMIDUE TO OTHER FUNDS A summary of due from/due to other funds is as follows: Due From Due To General Fund $40,000 $ Special Revenue Funds: Miscellaneous Special Revenue Fund 40,000 Total $40,000 $40,000 7. LOANS RECEIVABLE The City has the following loans receivable at June 30, 1996: a. $100,000 loan from Marin Housing Development at 5% interest rate due June 30, 1997. b. $100,000 loan from One "H" Street Associates at 5% interest rate due May 1, 1999. c. $303,000 loan from Centertown Associates, Ltd. at 3% interest rate payable semi- annually. The remaining loan receivable at June 30, 1996 was $297,757. The final payment is due to the City on July 1,2065. 8. CAPITAL LEASES The City leases various equipment through capital leasing arrangements in the governn1ental funds. The assets and obligations for agreements of the governmental funds are recorded in the General Fixed Asset Account Group and the General Long-Term Debt Account Group, respectively. The equipment acquired through the capital leases totaled $108,061 at June 30, 1996. The future minimum lease obligations as of June 30, 1996, were as follows: Year Ending June 30, 1997 1998 Total minimum lease payments Less: Amount representing interest Present value of minimum lease payments 24 $ 22,778 20,380 43,158 (3,291) $ 39,867 LITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 9. FUND BALANCES, RESERVES AND DESIGNATIONS Fund balances consist of reserved and umeserved amounts. Reserved fund balances represent that portion of a fund balance which is not appropriable for expenditure or is legally segregated for a specific future use. The remaining portion is unreserved fund balance. Portions of unreserved fund balance may be designated to indicate tentative plans for financial resource utilization in a future period, such as for general contingencies or capital projects. Such plans or intent are subject to change, have not been legally authorized and may not result in expenditures. A detailed schedule of the fund balances at June 30, 1996, is shown as follows: Fiduciary Governmental Fund T:tQes Fund T:tQes Special Debt Capital Trust and General Revenue Service Projects Agenc:t Fund balances: Reserved: Encumbrances $ 60,826 $ 1,030,638 $ $ 4,434 $ Loans receivable 200,000 Debt service 3,396,046 Refunds and projects 3,223,774 441,183 Redevelopment 18,994,503 Insurance claims 1.970.895 Total Reserved 2.031.721 4.454.412 3.396.046 18.998.937 441.183 Unreserved and Designated: Construction 716,763 13,701 1,726,702 Traffic mitigation 8.155.843 Total Unreserved and Designated 8.872.606 13.701 1.726.702 Unreserved and Undesignated 5.873.140 1.116.192 TOTAL FUND BALANCES $7.904.861 $ 14.443.210 $3.409.747 $20.725.639 $441.183 10. DEFICIT FUND BALANCES At June 30, 1996, the City has deficit fund balances in the following funds: Special Revenue Funds: Household Hazmat Facility Fund Falkirk Grant Fund 25 $ 5,350 39,791 Totals $ 1,095,898 200,000 3,396,046 3,664,957 18,994,503 1.970.895 29.122.299 2,457,166 8.155.843 10.613.009 6.989.332 $ 46.924.640 CITY OF SAN lUFAEC, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 11. EMPLOYEES' RETIREMENT PLAN Plan Description All permanent employees are eligible to participate in the Marin County Employees' Retirement Fund (the Fund). The Fund is an agent multiple-employer defined benefit retirement plan that acts as a common investment and administrative agent for various local governmental agencies within the County of Marin. The Fund provides retirement, disability, and death benefits based on the employee's years of service, age and final compensation. Employees vest after five years of service and are eligible to receive retirement benefits after 10 years of service and have attained the age of 50, or 30 years of service (20 years for safety employees) regardless of age. These benefit provisions and all other requirements are established by County ordinance. The City contributed 27.37% of payroll to the Fund for public safety personnel and 13.43% for other covered employees for the year ended June 30, 1996. The City's covered payroll for employees participating in the Fund for the year ended June 30, 1996, was $17,023,475. The City's 1996 payroll for all employees was $19,047,070. The City, due to a collective bargaining agreement, also has a legal obligation to contribute half of the employees' contribution up to a maximum of 7% of payroll for safety employees and 5% of payroll for all other employees. Employees have an obligation to contribute the remaining portion. Funding Status and Progress The "pension benefit obligation" is determined for each participating employer by the Fund's actuary and is a standardized disclosure measure that results from applying actuarial assumptions to estimate the present value of pension benefits, adjusted for the effects of projected salary increases and step rate benefits, to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the City's portion of the Fund to which contributions are made on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used. The pension benefit obligation was computed as part of an actual valuation perfonned as of July 1, 1994. The significant actuarial assumptions used in the 1994 actuarial valuation to compute the pension benefit obligation were an assumed rate of return on investment assets of 8%, and annual payroll increases of 4.5% per year before five years of service, and 2% per year thereafter for miscellaneous employees under age 40 or 0.5% per year thereafter for safety employees. 26 CiTY OF SAN RAFAE ~, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Total unfunded pension benefit obligation applicable to the City's employee groups at July 1, 1995, follows: Pension Benefit Obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits Current employees: Accumulated employee contributions and allocated investment earnings Employer-financed, vested Employer-financed, nonvested Total pension benefit obligation Net assets available for benefits, at cost Unfunded pension benefit obligation Actuarially Determined Contributions Required and Contributions Made $ 42,406,000 10,493,000 28,037,000 17,596,000 98,532,000 84,536,777 $ 13.996,223 The funding policy of the Fund provides for actuarially detemlined periodic contributions by the City at rates such that sufficient assets will be available to pay Fund benefits when due. The contribution to the Fund for the year ended June 30, 1996, of $3,640,834 was made in accordance with the actuarially determined requirements computed as of July 1, 1994. The City contributed $2,989,846 (20.42% of current covered payroll). The employees' contribution was $650,988 (4.44% of current covered payroll). The contribution rate for normal cost is determined using the Entry Age Normal Actuarial Cost Method, a projected benefit cost method. It takes into account those benefits that are expected to be earned in the future as well as those already accrued. The Fund also uses the level percentage of payroll method to amortize the unfunded actuarial liability. It is assumed that payroll increases at an annual inflation rate graded from 3% to an ultimate rate of 5% over 5 years over the amortization period. As of July 1, 1994, 12 years are left in the amortization period. Significant actuarial assumptions used in the 1994 valuation to compute the actuarially detemlined contribution requirement are the same as those used to compute the pension benefit obligation as described above . 27 <"'1 TY OF SAN RAFAE~, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 Three-Year Historical Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Nine-year trend information for the Fund may be found in the City's supplementary section of the annual report. For the City's share of the Fund, trend information for the years ended June 30, 1995, 1994 and 1993 is as follows: Net assets available for benefits, at cost Pension benefit obligation Net assets available for benefits as a percentage of pension benefit obligation Unfunded pension benefit obligation Estimated annual covered payroll Unfunded pension benefit obligation as a percentage of annual covered payroll $ 84,535,777 98,532,000 86% 13,996,223 14,643,000 96% $ 78,189,294 91,958,000 85% 13,768,706 13,945,000 99% $ 67,709,149 74,282,100 91% 6,572,951 13,230,660 50% Employer's contributions, made in accordance with actuarially determined requirements, as a percentage of annual covered payroll was 20.42%,19.44% and 18.94% for 1995,1994 and 1993, respectively. Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. The nine-year historical infonnation is shown in the Statistical Section. 12. PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION RETIREMENT PLAN) The City contributes to the Public Agency Retirement System (PARS), which is 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 account are to be determined instead of specifying the amount of benefits the individual is to receive. Under a defined contribution pension plan, the benefits a participant will receive depend solely on the amount contributed to the participant's account, the returns earned on investments on those 28 CITY OF SAN RAF AEt" CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 contributions, and forfeitures of other participant's benefits that may be allocated to such participant's account. As established by the plan, all eligible employees of the City will become a participant in the plan from the date 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. (See Note 11). Contributions made by an employee and the employer vest immediately. 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. During the year, the City contributed $74,498 (3.75% of current year covered payroll) and employees contributed $74,497 (3.75% of current year covered payroll). The total covered payroll of employees participating in the plan for the year ended June 30, 1996 was $1,986,622 . The total payroll for the year was $19,047,070 . No changes in plan provisions occurred during the year. The plan held no securities of the City or other related parties during or at the close ofthe fiscal year. 13. POST-EMPLOYMENT HEALTH CARE BENEFITS The City provides certain health care benefits for retired employees and their spouses. The benefit provisions were established under the authority of the 1937 Act, Section 31450, et. seq. of the Government Code. Substantially all of the City's employees may become eligible for these benefits if they are receiving a retirement benefit from the Marin County Employees' Retirement Fund within 120 days of retirement from City employment. At June 30, 1996, 148 retirees received post-employment health care benefits. Those expenditures are reduced by reimbursements from the Marin County Retirement Office of the annual amount set forth in the County Retirement Rules and Regulations 1937 Act as amended and in Sections 31450 et. seq. of the Government Code. The cost of retiree health care benefits is recognized as an expenditure as claims are paid. For the fiscal year ended June 30, 1996, those costs totaled $186,092. 14. DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years . The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City 29 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The City has no liability for losses under the plan but does have the fiduciary duty of due care that would be required of an ordinary prudent investor. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 15. RISK MANAGEMENT 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 is self-insured up to a maximum of $500,000 for each general liability claim, $250,000 for each workers' compensation claim, and $25,000 for each property damage claim. The City participates in a public agency risk sharing pool (California Joint Powers Risk Management Authority) for general liability claims in excess of the self-insured amounts up to $9,500,000. The City purchases commercial insurance for workers' compensation claims in excess of the self-insured amount up to $9,750,000. The City also purchases commercial insurance for property damage claims in excess of the self-insured amount up to $28,853,000. Settled claims have not exceeded this coverage in any of the past three fiscal years. The City accounts for and finances its uninsured risks of loss in the General Fund. The City had established a claims liability of $1,970,895 at June 30, 1996, based on the requirement of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. A reconciliation of changes in the aggregate liabilities for claims for the fiscal year ended June 30, 1995 and 1996 is as follows: Unpaid claims and claim adjustments at June 30, 1995 Incurred claims and claim adj ustment expenses Payments and claim adjustments Total unpaid claims and claim adjustments expenses at June 30, 1996 $1,221,885 1,483,381 (734.371) $1.970,895 The California Joint Powers Risk Management Authority which began operations in February 1986, is a governmental self-insurance cooperative organized under a joint power agreement consisting of 23 members which represent over 120 public agencies in California. The Risk Management Authority pools self-insurance losses of charter and associate members, develops 30 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 risk management programs, and provides for administration of pooled coverage claims. The City paid $178,524 in premiums to the Risk Management Authority during the fiscal year ended June 30, 1996. Condensed financial information for the California Joint Powers Risk Management Authority for the fiscal year ended June 30, 1995 is as follows: Assets Liabilities Equity: Unrealized gain on investment Retained earnings Revenues Expenses Total Liabilities and Equity Refunds to members Net increase in retained earnings 16. JOINT POWER AGREEMENTS $ 43.014,299 $ 24,869,672 44,238 18,100,389 $ 43,014,299 $ 11,227,483 (5,460,572) (3,148,202) $ 2,618,709 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 entities exercise full powers and authorities within the scope of the related Joint Powers Agreement including the preparation of rumual budgets, accountability for all funds, the power to make and execute contracts, and the right to sue and be sued. Obligations and liabilities of the separate entities are not those of the City. Joint Ventures: The Marin County Integrated On-Line Library System (the System) was formed to provide for the procurement, ownership, operation, maintenance, and governance of an integrated on-line library system that is jointly owned and operated by the Cities of San Rafael, Mill Valley, Sausalito, and the County of Marin. 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 the acquisition cost in the amount of $108,007 represents 18.98% of ownership in the System. Operating costs for the System are also shared by each participant by applying the cost sharing the fornmla. Financial Statements of the System can be obtained at County Librarian, Marin County Free Library, Civic Center, Administration Building, San Rafael, CA 94903. The Marin Street Light Acquisition Joint Powers Authority (MSLAJPA) was forn1ed by the County of Marin and twelve local agencies to acquire street light facilities, operate the facilities 31 l:lTY OF SAN RAFAEt-, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1996 during the pendency of an eminent domain action against PG&E and subsequent transfer of the facilities to the individual local agencies. The Governing Board consists of five members from the participating agencies. Each of the local agencies' share of contribution was based on the number of street lights to be acquired in the local agencies' individual jurisdiction in relation to the total number of street lights to be acquired by the MSLAJP A. Jointly Governed Organizations: The Countywide Plam1ing Agency was established by the County of Marin and ten local cities to implement countywide performance standards for traffic, housing, water and sewer facilities, and enviromnental protection to ensure that residential and commercial growth does not exceed local water, sewer and transportation capacities. The Governing Board of the Countywide Planning Agency consists of one member of the County Board of Supervisors and one member of the City Council of each participating city. The Marin County Cable Rate Regulation Joint Powers Authority was established to regulate the rates for cable television service and equipment and to advise the participants in their exercise of their license authority. The Governing Board of the Marin County Cable Rate Regulation Joint Powers Authority consists of one member from each of the seven participating local cities. The Marin County Major Crimes Task Force was established by twelve local law enforcement agencies to provide funding and policy direction of a unit of peace officers and support personnel to detect, apprehend and prosecute major crimes including highly mobile criminal narcotic traffickers thus reducing major narcotic activity and combating its influence throughout the County. The Governing Board of the Marin County Major Crimes Task Force consists of nine members, one city council member, one member of the Marin County Board of Supervisors, two city managers, two chief law enforcement officials, two residents of Marin County, and the Marin County Administrator. The Marin County Hazardous and Solid Waste Joint Powers 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. 32 <..:ITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1996 17. LITIGATION There are several pending lawsuits in which the City is involved. The City's attorneys estimate that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the financial statements of the City. 18. SUBSEQUENT EVENT AND RELATED PARTY TRANSACTION On July 15, 1996, the City made a loan to the City Manager in the amount of $392,000 for the purchase of a home . The loan is secured by the Deed of Trust. 19. PRIOR PERIOD ADJUSTMENTS The City changed its method of accounting for taxpayer assessed revenue in accordance with GASB Statement No. 22 for the General Fund. Accordingly, the beginning fund balances were restated, the effects of which are as follows: General Fund fund balance as previously reported To accrue additional sales taxes To accrue additional transient occupancy taxes To accrue additional franchise fees General Fund fund balance at June 30, 1996 as restated 33 $6,847,702 943,849 173,083 78,700 $8,043.334 SUPPLEMENTARY INFORMATION ASSETS Cash and investments Accounts receivable Loans receivable TOTAL ASSETS RECREATION REVOLVING FUND $17,192 CITY OF SAN RAFAEL, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 1996 ASSESSMENT DISTRICT FUND $6,004 PARKING SERVICES FUND $240,745 14,135 GAS TAX FUND $710,759 CHILDCARE FUND $211,943 EQUIPMENT REPLACEMENT FUND $1,931,094 12,870 MISCELLANEOUS SPECIAL SPECIAL REVENUE REVENUE FUND FUNDS $\,080,866 $2,007,736 63,453 $17,192 $6.004 $254,880 $710,759 $211,943 $1,943,964 $1,080,866 $2,071,189 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable Due to other funds Deposits and advances Total Liabilities FUND BALANCES: Reserved Unreserved: Designated Undesignated $17,192 $ -$ 6,889 $ $ 35,366 $ 54,380 $ 5,355 $ 36,211 32,500 17,192 6,889 35,366 54,380 37,855 36,211 247,991 176,577 773,887 1,043,011 2,034,978 6,004 710,759 1,115,697 Total Fund Balances 6,004 247,991 710,759 176,577 1,889,584 1,043,011 2,034,978 TOTAL LIABILITIES AND FUND BALANCES $17,192 $6,004 $254,880 $ 710,759 $211,943 $1,943,964 $1,080,866 $2,071,189 (Continued) 34 ASSETS Cash and investments Accounts receivable Loans receivable TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable Due to other funds Deposits Total Liabilities FUND BALANCES: Reserved Unreserved: Designated Undesignated Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES OTHER MITIGATION FUNDS $7,677,463 1,622,838 CITY OF SAN RAFAIt:L, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 1996 GRANT FUNDS $25,137 18,674 HOUSEHOLD FALKIRK LIBRARY HAZMATFACILITY GRANT FUND FUND FUND $2,877 $ (5, 105) $ 768 TRAFFIC MITIGATION FUND $ 41,830 200.000 INTEGRATED ON-LINE LIBRARY SYSTEM FUND $495 TOTALS $ 13,949,804 1,731,970 200.000 $9,300.301 $43.811 $2.877 $(5,105) $ 768 $241.830 $495 $15.881.774 $1,186,288 $23,579 $ -$ 245 $ 559 $ 40,000 $ -$ 1,366,064 40,000 32.500 1,186.288 23.579 245 40.559 1,438.564 20,232 2,877 (5,350) (39,791) 8,114,013 200,000 41,830 495 4,454,412 8,872,606 1.116.192 8.114.013 20,232 2,877 (5,350) (39,791) 241,830 495 14,443,210 $9.300.301 $43,811 $2.877 $(5,105) $ 768 $241.830 $495 $15.881.774 (Concluded) 35 CITY OF SAN RAFAEL, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1996 REVENUES: Taxes and special assessments Licenses and permits Uses of money and property Intergovernmental Charges for current services Other Total Revenues EXPENDITURES: Current: General government Public safety Public works and parks Culture and recreation Other Capital Outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEF[CIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR RECREATION REVOLVING FUND ASSESSMENT DISTRICT FUND PARKING SERVICES FUND GAS TAX FUND CHILDCARE FUND EQUIPMENT REPLACEMENT FUND SPECIAL REVENUE FUND MISCELLANEOUS SPECIAL REVENUE FUNDS $ $27,084 $ $ $ $ $ $ 504,806 511,777 [5,941 38,467 9,219 108,328 39,134 80,621 1,017,499 863 [,246,779 700,873 1,783,006 268,197 39,389 2,408 500 677, 119 360,130 703,281 27,084 528,218 1,055,966 1,793,088 785,447 307,331 2,231,725 555,060 615,479 10,185 21,080 449,680 732,990 1,684,853 7,702 175,971 449,680 1,907 664,955 28,577 495.696 83,439 • 734.897 21,080 555,060 664,955 1,713,430 495,696 175,971 1,166,485 (31,616) 6,004 (26,842) 391,011 79,658 289,751 131,360 1,065,240 96,122 78,507 (350,()00) _-__ (84,547) 96,122 (350,000) (6,040) 64,506 6,004 (26,842) 41,011 79,658 289,751 131,360 1,059,200 (64,506) 274.833 669,748 96.919 1,599,833 911.651 975,778 $ $ 6,004 $247,99[ $ 7[0,759 $ [76.577 $1.8_89,584 ~043,0[ [ $2,034,978 (Continued) 36 CITY OF SAN RAFAEL, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30,1996 REVENUES : Taxes and special assessments Licenses and penn its Uses of money and property Intergovernmental Charges for current services Other Total Revenues EXPENDITURES: Current: General government Public safety Public works and parks Culture and recreation Other Capital Outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR OTHER MITIGATION FUNDS GRANT FUNDS HOUSEHOLD LIBRARY HAZMAT FACILITY FUND FUND FALKIRK GRANT FUND TRAFFIC MITIGATION FUND INTEGRATED ON-LINE LIBRARY SYSTEM FUND TOTALS $ $ $ $ $ $ $ -$ 531,890 511,777 467,294 28,718 1,940 11,962 801,624 3,446,727 349,066 75,404 46,299 6,182,637 424,294 128 3,215,887 47,100 5,410 1,092.667 4.385,415 383.194 128 75,404 48.239 11,962 12.336,482 69,658 1,240,197. 25,153 35,338 4,303,852 4,774,612 284,073 30,355 74,557 2,814,530 175,971' 11,255 81,250 55,60 I 1,422.680 4,315,107 434,981 30.355 80,754 74,557 10,463,328 70,308 (51,787) (30.227) (5,350) (26.318) 11,962 1,873.154 70,308 (51,787) (30,227) (5,350) (26,318) 11,962 174,629 (434.547) ill9,918) 1,613,236 8,043,705 72,019 33,104 (13,473) 229,868 495 12,829.974 $ 8,114,013 $ 20.232 $ 2.877 $ (5,350) $(39.791) $241,830 $495 $14.443.210 (Concluded) 37 ASSETS Cash and investments Cash with fiscal agent Assessments receivable Prepaid expenses TOTAL ASSETS LIABILITIES AND FUND EQUITY LIABILITIES: Deferred revenue Total Liabilities FUND BALANCES: Reserved Unreserved: Designated Undesignated Total Fund Balances TOTAL LIABILITIES AND FUND EQUITY CITY OF SAN RAFAEL, CALIFORNIA DEBT SERVICE FUNDS COMBINING BALANCE SHEET JUNE 30, 1996 KERNER ASSESSMENT REFUNDING FUND $196,120 EAST FRANCISCO BOULEVARD FUND $13,701 KERNER ASSESSMENT FUND $ 166,849 672,528 678,096 SUN VALLEY FUND $ 51,940 33,088 PEACOCK GAP MARIPOSA REFUNDING FUND FUND $38,079 $486,965 23,037 470,249 $196,120 $13,701 $1,517,473 $85,028 $61,116 $957,214 $ $ $ 678,096 $ 33,088 $ 23,037 $ 470,249 678,096 33,088 23,037 470,249 196,120 839,377 51,940 38,079 486,965 13,701 196,120 13,701 839,377 51,940 38,079 486,965 $196,120 $13,701 $1,517,473 $85,028 $61,116 $957,214 (Continued) 38 ASSETS Cash and investments Cash with fiscal agent Assessments receivable Prepaid expenses TOTAL ASSETS LIABILITIES AND FUND EQUITY LIABILITIES: Deferred revenue Total Liabilities FUND BALANCES: Reserved Unreserved: Designated Undesignated Total Fund Balances TOTAL LIABILITIES AND FUND EQUITY CITY OF SAN RAFAEL, CALIFORNIA DEBT SERVICE FUNDS COMBINING BALANCE SHEET JUNE 30, 1996 CIVIC CENTER! NORTHGATE FUND $248,000 174,871 335,313 1915 ACT BOND FUND $ 78,455 11,068 REDEVELOPMENT AGENCY FUND $ - REDEVELOPMENT AGENCY 1992 REFUNDING FUND REDEVELOPMENT AGENCY 1995 REFUNDING FUND TOTALS $ $ $1,201,654 525,616 1,451,470 1,550,851 525.183 231.440 756,623 $ 758,184 $ 89,523 $ -$ 1.050,799 $ 231,440 $ 4,960,598 $335,313 $11,068 $ -$ $ $1,550,851 335,313 11,068 1,550,851 422,871 78,455 1,050,799 231,440 3,396,046 13,701 422,871 78,455 1,050,799 231,440 3,409,747 $ 758,184 $ 89,523 $ -$ 1.050,799 $ 231 ,440 $ 4,960,598 (Concluded) 39 CITY OF SAN RAFAEL, CALIFORNIA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1996 REVENUES: Taxes and special assessments Uses of money and property Other Total Revenues EXPENDITURES: Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR KERNER EAST ASSESSMENT FRANCISCO KERNER PEACOCK GAP REFUNDING BOULEVARD ASSESSMENT SUN VALLEY MARIPOSA REFUNDING FUND FUND FUND FUND FUND FUND $ $ 1,723 $ 565,430 $29,650 $23,102 $ 300,970 39,459 2,549 1,813 22,687 1,723 604,889 32,199 24,915 323,657 205,000 11,000 10,000 155,009 659 253,588 20,765 13,790 111,410 659 458,588 31,765 23,790 266,410 (659) 1,723 146,301 434 1,125 57,247 (659) 1,723 146,301 434 1,125 57,247 196,778 11,980 693,076 51,506 36,953 429,717 $196,119 $13,703 $839,377 $51,940 $38,078 $486,964 (Continued) 40 CITY OF SAN RAFAEL, CALIFORNIA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1996 REVENUES: Taxes and special assessments Uses of money and property Other Total Revenues EXPENDITURES: Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES CIVIC CENTER! 1915 ACT REDEVELOPMENT REDEVELOPMENT REDEVELOPMENT NORTHGATE BOND AGENCY AGENCY 1992 AGENCY 1995 FUND FUND FUND REFUNDING FUND REFUNDING FUND TOTALS $ 350,256 $21,475 $ $1,404,910 $ 625,393 $3,322,909 18,490 15,456 5,326 105,780 436 436 369,182 21,475 1,420,366 630,719 3,429,125 115,000 21,000 600,000 370,000 320,000 1,807,000 229,268 3,076 16,462 1,070,755 310,718 2,030,491 344,268 24,076 616,462 1,440,755 630,718 3,837,491 24,914 (2,601) (616,462) (20,389) (408,366) 713 2,040 231,439 234,192 (125-,221 L (125,991) (125,278) 2,040 231,439 108,201 24,914 (2,601) (741,740) (18,349) 231,440 (300,165) FUND BALANCES AT BEGINNING OF YEAR 397,958 81,056 741,740 1,069,148 3,709,912 FUND BALANCES AT END OF YEAR $ 422,872 $ 78,455 $ $ 1,050,799 $ 231 ,440 $ 3,409,747 (Concluded) 41 ASSETS Cash and investments Accounts receivable Loans receivable Interest receivable TOTAL ASSETS LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable Total Liabilities FUND BALANCES: Reserved Unreserved: Designated Total Fund Balances TOTAL LIABILITIES CITY OF SAN RAFAEL, CALIFORNIA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET JUNE 30, 1996 SUN VALLEY CAPITAL SPECIAL OPEN SPACE FUND EAST FRANCISCO PEACOCK GAP PEACOCK GAP OPEN SPACE IMPROVEMENT ASSESSMENT FUND BOND FUND $ 739,506 $ 375,379 $453,392 ASSESSMENT PARKS ASSESSMENT REFUNDING ASSESSMENT BOND FUND FUND DISTRICT FUND FUND FUND $ 6,908 $ - 6,040 $ 163,057 $ 9,283 $ 10,104 $739,506 $375,379 $453,392 $6,908 $6,040 $ 163,057 $9,283 $ 10,104 $ 96,040 $ $ $ -$ -$ $ -$ 96,040 2,788 640,678 375,379 453,392 6,908 6,040 163,057 9,283 10,104 643,466 375,379 453,392 6,908 6,040 163,057 9,283 10,104 AND FUND EQUITY $ 739,506 $ 375,379 $ 453,392 $ 6,908 $ 6,040 $ 163,057 $ 9,283 $ 10,104 (Continued) 42 ASSETS Cash and investments Accounts receivable Loans receivable Interest receivable TOTAL ASSETS LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable Total Liabilities FUND BALANCES: Reserved Unreserved: Designated Total Fund Balances TOTAL LIABILITIES AND FUND EQUITY CIVIC CENTER NORTHGATE REFUNDING FUND $ 49,272 $49.272 $ 150 150 CITY OF SAN RAFAEL, CALIFORNIA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET JUNE 30, 1996 MARIPOSA ASSESSMENT DISTRICT FUND $ 12,739 REDEVELOPMENT AGENCY ADMINISTRATION FUND LOW AND MODERATE HOUSING FUND REDEVELOPMENT AGENCY REFUNDING FUND REDEVELOPMENT AGENCY 1995 BOND FUND TOTALS $3,174,778 $1,676,149 $5,223,984 $8,593,890 $20,488,441 6,040 297,757 297,757 42,677 10,914 46,975 134,556 235,122 $12,739 $3,217,455 $1,984,820 $5,270,959 $8,728,446 $21.027,360 $ $ 143,023 $ 1,200 $ 53.949 $ 7.359 $ 301.711 143,023 1,200 53.949 7.359 301.721 3,074,432 1,983,620 5,217,010 8,721,087 18,998,937 49.122 12.739 1.726,70~ 49.122 12.739 3.074,432 1.983.620 5.217.010 8.721.087 20.725.639 $ 49.272 $ 12.739 $ 3.217,455 $ 1.984.820 $ 5.270.959 $ 8.728,446 $ 21.027,360 (Concluded) 43 CITY OF SAN RAFAEL, CALIFORNIA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1996 CAPITAL SPECIAL EAST FRANCISCO SUN VALLEY PEACOCK GAP OPEN SPACE IMPROVEMENT ASSESSrvlENT OPEN SPACE FUND ASSESSMENT PARKS PEACOCK GAP ASSESSMENT DISTRICT FUND REFUNDING ASSESSMENT REVENUES : Taxes and special assessments $ Uses of money and property Intergovernmental Other Total Revenues EXPENDITURES: Current: General government Community development Capital Outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Proceeds from issuance of bond Bond issuance cost Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR $ FUND BOND FUND $ $ 50,641 26,310 1.572 1,000 BOND FUND FUND $ - $ - 541 $ 9,450 180 52,213 27,310 541 ~630 1,154,480 FUND FUND $ $ 567 567 2,121 563 1,154,480 _ _-_ __-._ 2,121 563 (1,102,267) 27,310 541 9,630 (1,554) (563) 770,400 6,040 770,400 -. _. 6,040 (331,867) 27,310 541 6,040 9,630 (1,554) (563) 975,334 375,379 426,081 6,367 153,427 10,837 10,667 643,467 $375,379 $453,391 $6,908 $6,040 $163,057 - $ 9,283 $10,104 (Continued) 44 CITY OF SAN RAFAI~L, CALIFORNIA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED .TUNE 30, 1996 REVENUES: Taxes and special assessments Uses of money and property Intergovernmental Other CIVIC CENTER NORTHGATE REFUNDING FUND $ 2,933 MARIPOSA ASSESSMENT DISTRICT FUND $ REDEVELOPMENT AGENCY ADMINISTRATION FUND LOW AND MODERATE HOUSING FUND REDEVELOPMENT AGENCY REFUNDING FUND REDEVELOPMENT AGENCY 1995 BOND FUND TOTALS $ $ 910,443 $ $ $ 910,443 172,139 54,953 373,261 463,114 1,152,80. 567 66,761 13,163 _10,523 _ 93,740 Total Revenues 2,933 238,900 978,559 383,784 463,114 2,157,551 EXPENDITURES: Current: General government Community development Capital Outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Proceeds from issuance of bond Bond issuance cost Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 1,026 383 1,158,573 764,807 99,017 1,059,662 131,071 2,054,557 700,907 _.. 700,907 1,026 383 1,465,714 99,017 1,059,662 131,071 3,914,037 1,907 (383) (1,226,814) 879,542 (675,878) 332,043 (I, 756,486) 1,907 (383) 125,991 (713) (2,040) 902,431 (231,439) (234,19: 8,895,000 8,895,000 (274,517)_ (274,517) 125,278 ~,040) _ 8,389,044 9,288,722 (1,101,536) 879,542 (677,918) 8,721,087 7,532,236 FUND BALANCES AT BEGINNING OF YEAR 47,215 13,122 4,175,968 1,104,078 5,894,928 13,193,403 FUND BALANCES AT END OF YEAR $49,122 $12,739 $ 3,074,432 $1,983,620 $5,217,010 $8,721,087 $20,725,639 (Concluded) 45 ASSETS Cash and investments TOTAL ASSETS LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable Deferred compensation payable Total Liabilities FUND BALANCES: CITY OF SAN RAFAEL, CALIFORNIA TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET JUNE 30, 1996 AGENCY FUND DEFERRED COMPENSATION FUND EXPENDABLE TRUST FUNDS MISCELLANEOUS BUSINESS LIBRARY FIDUCIARY IMPROVEMENT FIDUCIARY FUND FUND FUND DAVIDSON BEQUEST FUND TOTALS $7,348,352 $25,824 $19,969 $20,460 $377,009 $7,791,614 $7,348,352 $25,824 $19,969 $20,460 $377,009 $7,791,614 $ $ $ 2,003 $ 76 $ $ 2,079 . 7,348,352 7,348,352 7,348,352 2,003 76 7,350,431 Reserved 25,824 17,966 20,384 377,009 441,183 Total Fund Balances 25,824 17,966 20,384 377,009 441,183 TOTAL LIABILITIES AND FUND EQUITY $7,348,352 $25,824 $19,969 $20,460 $377,009 $7,791,614 46 CITY OF SAN RAFAEL, CALIFORNIA EXPENDABLE TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1996 REVENUES: Uses of money and property Other Total Revenues EXPENDITURES: Current: General government Community development Culture and recreation Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR MISCELLANEOUS FIDUCIARY FUND $ - 273 273 273 BUSINESS IMPROVEMENT FUND LIBRARY FIDUCIARY FUND DAVIDSON BEQUEST FUND TOTALS $ $ $ 22,280 $ 22,280 58,077 1,243 59,593 58,077 1,243 22,280 81,873 51,278 843 37,680 37,680 51,278 843 51,278 843 37,680 89,801 6,799 400 (15,400) (7,928) 2,551 11,167 19,984 392,409 449,111 $2,824 $17,966 $20,384 $377,009 $441,183 47 CITY OF SAN RAFAKt, CALIFORNIA AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE FISCAL YEAR ENDED JUNE 30, 1996 Balance at Balance at July 1, 1995 Additions Deductions June 30, 1996 DEFERRED COMPENSATION ASSETS: Cash and investments $ 6,145,902 $1,689,887 $ 487,437 $ 7,348,352 TOTAL ASSETS $ 6,145,902 $1,689,887 $487,437 $ 7,348,352 LIABILITIES: Deferred compensation payable =$ =6,~14...!.,:5::....,9~0=2=-------",$:....!l:.o..!,6=8=9=,8=87-,---_-",,$-,-4=8 7!..-'.,4...!.,:3::...!7 __ $""-!,..O7 ,=34...!..:8::....,3=5::..=2 TOTAL LIABILITIES ~$ =6,=14=5==,9=0=2 ==$====1,6:=8:=9=,8:=87====$ =48=7::::,4:=3=7 ======$ ==:7 ,=34=8=:;,3:=5=:2 48 , I COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 1996 STATISTICAL SECTION (Unaudited) CITY OF SAN RAFAEL, CALIFORNIA FISCAL YEAR ENDED GENERAL JUNE 30 GOVERNMENT 1987 $ 2,794,382 1988 3,401,658 1989 3,693,519 1990 4,066,213 1991 4,021,682 1992 4,271,153 1993 4,604,503 1994 5,185,675 1995 5,074,185 1996 6,905,043 CITY OF 'SAN RAFAEL GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) LAST TEN FISCAL YEARS PUBLIC PUBLIC WORKS COMMUNITY CULTURE & SAFETY AND PARKS DEVELOPMENT RECREATION CLAIMS OTHER $ 10,473,637 $ 4,474,404 $ -$ 1,729,416 $ 551,243 $ 1,420,868 11,309,728 4,747,719 1,928,360 257,349 1,728,637 11,736,253 4,706,627 2,109,805 200,191 2,050,022 12,585,928 5,210,248 2,310,967 144,912 2,109,093 13,753,388 5,709,862 2,625,727 236,913 2,291,504 14,073,750 5,495,382 2,567,749 245,668 2,618,040 14,268,361 5,386,198 2,597,082 2,592 ,152 13,925,831 6,907,480 1,242,761 3,580,755 15,648,130 5,775,033 3,084,633 3,103,472 16,365,089 10,781,451 2,054,557 4,427,669 175,971 General Governmental Expenditures by Function Fiscal Year Ended June 10,1996 Community Development 4% Capital Outlay Other 5% Public Works and Parks 23% Debt Service B% General Government 15% CAPITAL OUTLAY $ 6,764,019 3,783,485 5,078,794 6,619,955 4,634,882 2,782,335 5,113,752 1,257,281 3,382,997 2,294,518 (1) Includes General, Special Revenue, Debt Service, and Capital Projects Funds Source : City of San Rafael Audited Financial Statements, lIlc1udes Rcdcl'C/opment Agency 49 DEBT SERVICE TOTAL $ 4,527,714 $ 32,735,683 4,689,221 31,846,157 5,629,141 35,204,352 6,312,830 39,360,146 4,438,768 37,712,726 3,996,296 36,050,373 5,561,241 40,123,289 5,384,283 37,484,066 4,219,647 40,288,097 3,837,491 46,841,789 FISCAL TAXES YEAR ENDED AND SPECIAL .JUNEJO ASSESSIIIENTS 1987 $ 19,685,320 $ 1988 21,013,621 1989 22,837,599 1990 23,792,3 II 1991 23,558,966 1992 23,694,780 1993 22,802,115 1994 25,171,565 1995 24,503,327 1996 26,137,439 CITY OF·SAN RAFAEL GENERAL GOVERNMENTi\L REVENUES BY SOURCE (1) LAST TEN FISCAL YEARS LICENSES AND PERIIIITS 1,349,267 1,194,786 2,628,115 718,168 678,138 804,785 960,746 988,716 919,234 1,151,547 FINES USES OF INTER-CHARGES AND 1II0NEYAND GOVERN-FOR FORFEITURES PROPERTY IIIENTAL SERVICES $ 608,887 $ 2,415,857 $ 6,053,772 $ 2,389,757 580,136 2,535,848 4,123,277 2,719,879 560,322 2,874,658 4,120,535 2,836,278 650,890 2,958,949 4,027,068 4,134,119 642,298 2,612,680 3,902,184 3,863,471 463,451 2,232,264 3,944,927 4,514,698 456,264 3,426,165 4,792,657 4,323,047 476,433 1,733,453 4,962,636 4,092,883 370,599 1,895,721 5,261,506 4,594,9\0 422,250 2,535,719 9,958,206 5,172,466 General Governmental Revenues by Source Fiscal Year Ended June 10, 1996 Charges for Services Other 12% 3% SALE OF FIXED lllilli $ 5,126,796 953,151 341,788 3,263 Intergovernmental ':=t-~·0~--~--'.-- 20% -Taxes and Special Assessments 58% Uses of Money and Property Licenses and Permits 30/. Fines and 3% Forfeitures 1% (I) Includes General, Special Revenue, Debt Service, and Capital Projects Funds iiource: City of San Rofael Audited Financial Statements, includes Redevelopment Agency 50 OTHER TOTAL $ 400,200 $ 38,029,856 275,416 32,442,963 624,005 37,434,663 558,541 37,181,834 365,838 35,626,838 780,3 \0 36,435,215 586,720 37,347,714 2,603,011 40,028,697 1,509,772 39,055,069 1,411,472 46,789,099 CITY OF SAN RAFAEL SECURED PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS FISCAL YEAR ENDED JUNE 30 1987 1988 1989 1990 1991 1992 1993 1994* 1995* 1996* $ TAX LEVY 5,755,077 5,949,984 6,049,630 6,451,564 10,939,831 7,394,406 7,862,865 7,672,488 7,539,388 7,516,496 (In Thousands) TOTAL TAX COLLECTIONS $ 5,557,358 5,769,505 5,884,968 6,254,614 10,532,838 7,116,173 7,590,810 7,672,488 7,539,388 7,516,496 (1) Represents delinquent taxes due for current year only OUTSTANDING DELINQUENT TAXES (1) $ 197,719 180,480 164,662 196,950 406,993 278,233 272,055 N/A N/A N/A * Beginning FYE 93/94, the City began participating in the Teeter Plan through the County . OUTSTANDING DELINQUENT TAXES AS A PERCENT OF CURRENT LEVY 3.44 % 3.03 2.72 3.05 3.72 3.76 3.46 N/A N/A N/A EvelY year, the County distributes the full amount of secured property taxes levied to the City and the County retains any delinquent taxes collected, including interest and penalties. In 93/94, the County paid the City a lump-sulll amount for all outstanding delinquencies. Source : Marin County Auditor-Controller 51 F1SCAL YEAR ENDED .TUNE30 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 CITY OF SAN RAFAEL ASSESSED VALUATION OF TAXABLE PROPERTY LAST TEN FISCAL YEARS SECURED 1l\1PROVE-PERSONAL LAND I\IENTS PROPERTY $ 812,379 S 1,606,455 $ 17,007 889,171 1,763,628 17,563 982,909 1,881,729 18,264 1,132,448 2,043,831 21,264 1,263,730 2,287,255 30,191 1,345,940 2,437,846 35,807 1,430,683 2,532,745 32,012 1,500,340 2,623,503 27,542 1,567,183 2,734,902 30,972 1,621,593 2,806,970 35,979 Alarin County Auditor -Controller and Assessor includes all property within city limits (In Thousands) PUBUC NET UTILITIES T.A..XABLE ASSESSED LESS SECURED DVSDE EXEMPTIONS PROPERTY $ 141,900 S 136,909 S 2,440,832 154,045 152,434 2,671,973 11,855 157,121 2,737,636 14,509 160,428 3,051,624 22,818 173,927 3,430,067 10,528 182,782 3,647,339 10,015 177,361 3,828,094 7,651 180,954 3,978,082 8,036 220,731 4,120,362 7,154 246,674 4,225,022 SEE = State Board ofEquali=ation 52 NETTAXADLE UNSECURED TOTAL REAL AND PROPERTY PERSONAL SUDJECTTO PROPERTY TAXATION $ 211,654 S 2,652,486 252,956 2,924,929 222,969 2,960,605 266,296 3,317,920 236,889 3,666,956 281,444 3,928,783 228,494 4,056,588 249,683 4,227,765 258,813 4,379,175 240,210 4,465,232 ( CITY OF 'SAN RAFAEL RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUATION AND NET GENERAL BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS (In Thousands) RATIO OF NET GENERAL FISCAL ASSESSED BONDED DEBT YEAR ENDED ESTIMATED ASSESSED VALUATION NET GENERAL TO ASSESSED .TUI\'E 30 POPULATION (A) VALUATION (8) PER CAPITA BONDED DEBT (C) VALUATION 1987 46,200 $ 2,652,486 57.41 $ 16,688 0.629 1988 46,550 2,924,929 62.83 14,625 0.500 1989 47,350 2,960,605 62.53 13,948 0.471 1990 48,400 3,317,920 68.55 13,184 0.397 1991 49,500 3,666,956 74.08 11,502 0.314 1992 50,400 3,928,783 77.95 18,645 0.475 1993 51,000 4,056,588 79.54 17,662 0.435 1994 51,700 4,227,765 81.77 16,858 0.399 1995 51,600 4,379,175 84.87 15,929 0.364 1996 53,200 4,465,232 83.93 24,063 0.539 Source : (A) = CA State Department of Finance (B) = "Total Property Subject to Taxation "from Schedule of'~4ssessed Valuation of Taxable Propel1y" (C) = Jncludes General Obligation Bonds and Tax Allocation Bonds (Redevelopment Agency) which are supported by property taxes 53 NET GENERAL BONDED DEBT PER CAPITA $ 361.21 314.18 294.57 272.40 232.36 369.94 346.31 326.07 308.70 452.31 CITY OF" SAN RAFAEL RATIO OF ANNUAL DEBT SERVICE TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES LAST TEN FISCAL YEARS RA TIO OF DEBT TOTAL SERVICE TO FISCAL GENERAL TOTAL GENERAL YEAR ENDED TOTAL DEBT GOVERNMENTAL GOVERNMENTAL JUNE 30 PRINCIPAL INTEREST SERVICE EXPENDITURES EXPENDITURES 1987 S 1,199,488 $ 3,328,226 $ 4,527,714 $ 4,527,714 100 .0% 1988 1,481,744 3,207,477 4,689,221 4,689,221 100 .0% 1989 2,497,132 3,132,009 5,629,141 5,629,141 100 .0% 1990 3,486,320 2,826,510 6,312,830 6,312,830 100.0% 1991 1,917,000 2,521,768 4,438,768 4,438,768 100 .0% 1992 2,167,000 1,829,296 3,996,296 3,996,296 100 .0% 1993 2,534,000 3,027,241 5,561,241 5,561,241 100 .0% 1994 2,647,131 2,737,152 5,384,283 5,384,283 100 .0% 1995 2,276,688 1,942,959 4,219,647 4,219,647 100 .0% 1996 1,807,000 2,030,491 3,837,491 3,837,491 100.0% Source: City of San Rafael Audited Financial Statemellts 54 CITY OF SAN RAFAEL COMPUTATION OF DIRECT AND OVERLAPPING DEBT JUNE 30, 1996 PERCENT GROSS APPLICABLE BONDED TO CITY DEBT EXCLUSIONS DIRECT DEBT: City of San Rafael 1911 Bonds 100% $ 54,017 $ 54,017 1992 Bonds 100% 16,770,000 1,050,799 1995 Bonds 100% 8,575,000 231,440 TOTAL DIRECT DEBT $ 25,399,017 $ 1,336,256 OVERLAPPING DEBT: (1) TOTAL DIRECT AND OVERLAPPING DEBT (1) Source: City of San Rafael Audited Financial Statements (1) Information is currently unavailable 55 NET BONDED DEBT $ 15,719,201 8,343,560 $ 24,062,761 COMPANY Autodesk Lucas Arts Entertainment Company Fair, Isaac Commerce Clearing House, Inc. Toys "R" Us Phoenix Leasing Wells Fargo Bank Macys Department Store Wayne Cross Ford Sears Roebuck & Company Kaiser Pennanente Medical Group, Inc. Westarnerica BancoIporation Mervyn's Department Store Safeway Stores Ghilotti Brothers Construction, Inc. Subtotal Principal Taxpayers All Others TOTAL Source : A1arill Co IIIl ty Assessor CITY OF SAN 'RAFAEL PRINCIPAL TAXPAYERS JUNE 30, 1996 TYPE OF BUSINESS Computer Software Developer Film and Entertainment Computer Software Developer Professional Publishing Retail Toy Store Equipment Leasing Bank Retail Department Store Automobile Dealership Retail Department Store Hospital and Health Care Facility Bank Retail Department Store Grocery Store Construction 56 % OF TOTAL ASSESSED ASSESSED VALUATION VALUATION $ 30,894,069 .69% 25,966,244 .58% 14,676,551 .33% 14,256,203 .32% 12,912,103 .29% 8,118,852 .18% 5,567,436 .12% 2,460,979 .06% 1,983,404 .04% 1,717,610 .04% 1,570,762 .04% 1,312,667 .03% 1,240,152 .03% 1,168,748 .03% 796,080 .02% 124,641,860 2.79% 4,340,590,140 97.21% $ 4,465,232,000 100.00% FISCAL YEAR ENDED COMMERCIAIJ JUNE 30 INDUSTRIAL 1989 18 1990 10 1991 2 1992 6 1993 3 1994 4 1995 6 1996 3 CITY OF 'SAN RAFAEL CONSTRUCTION ACTIVITY (1) LAST EIGHT FISCAL YEARS NUMBER OF PERMITS ISSUED NEW RESIDENTIAL ALTERATIONS 455 1,103 94 1,178 199 1,013 42 982 83 1,030 102 1,117 41 1,109 90 1,147 (1) -Records unavailable for ;iscal years prior to 1989 Source: San Rafael Building Dep0l1ment 57 TOTAL TOTAL VALUATION 1,576 $ 136,420,777 1,282 58,578,242 1,214 41,335,138 1,030 31,467,041 1,116 29,559,332 1,223 42,077,753 1,156 34,386,454 1,240 64,269,981 COMPANY J.lachinea. and EgYJ{!.ment Insurance: Kemper Insurance Companies Fireman's Fund Insurance Co. Commercial Pro{!.erO!. Insurance: Westchester Fire Insurance Co. Continental Casualty Co. Lexington Insurance Co. Federal Insurance Co. Worker's Com{!.ensation: ~ational Union Fire Insurance Co . S{!.ecial Event Insurance: General Star Indemnity Co. Genesis Indemnity Insurance Co. Public OfIJ.cial Bonds: Western Surety Company Western Surety Company CNA Insurance Western Surety Company LiabiliO!. Insurance : American Eagle Insurance Co. California Joint Power.; Risk Management Authority ~ation.1 Union Fire Insurance Co. { ( CITY OF SAN RAFAEL SCHEDULE OF INSURANCE IN FORCE JUNE 30,1996 POLICY EXP NUMBER DATE TYPE OF COVERAGE 3XN-022-370-02 7/1196 Boiler and Machinery Coverage including Production Machines and Public Utility Equipment OV-40131-5 1011196 Hull and Machinery Insurance for Police Boat FPS 376-961 7/1196 Real and Personal Property, Business lM 1 40211955 711 /96 Interruption, Extra Expense, Rental value, 8693522 711 196 Transit, Accounts Receivable, Leaseholds 659-30-35 711 196 Excess Property Coverage X,VC 415-53-08 711 196 Excess Worker's Compensation IYG-325268 111198 Special Event Liability Insurance -Primary ZXB300176 11 1/98 Special Event Liability Insurance -Excess 58476738 11 /12199 Elected City Clerk 58476738 11112199 Appointed Deputy Treasurer BND02106226 811 196 Finance Director 58476740 1115199 Elected City Attorney .o\FB 26041-05 611 5196 Aircraft Liability -Non-o\\ned nla 711 /96 Property damage, bodily injury, penonal injury, public official error.; and omissions ""VC 415-53-08 7/1/96 Emplo)'er's Liability; Industrial Aid Aircraft coverage 58 LIMITS OF COVERAGE $ 10,000,000 Covered Property 100,000 Extra Expense 5,000 Deductible -Engine 1,000 Deductible -Other 1,000 Deductible -Extra Exp $ 250,000 Covered Property 5,000 Deductible $ 1,666,667 Company's portion 1,666,667 Company's portion 1,666,667 Company's portion $ 5,000,000 Each occurrence 25,000 Deductible $ 195,000,000 excess of $ 5,000,000 S 10,000,000 Excess of $250,000 250,000 Self-insured Retention $ 1,000,000 Aggregate Limit 250,000 Each occurrence 50,000 Fire damage 2,000 Medical, per per.;on S 1,500,000 Aggregate Limit 750,000 Each occurrence $ 5,000 S 10,000 $ 50,000 $ 1,000 $ 10,000,000 Each occurrence S 9,500,000 Excess of S500,OOO 500,000 Self-insured Retention S I,OOO ,OOll Each occurrence 250,000 Self-insured Retention t CITY OF SAN RAFAEL MISCELLANEOUS STATISTICAL DATA JUNE 30, 1996 DATE OF INCORPORATION FORM OF GOVERNMENT CITY EMPLOYEES ELECTION (1) POPULATION (2) LOCATION ELEVATION AREA IN SQUARE MILES POLICE: NUMBER OF STATIONS l'<'UMBER OF SUB-STATIONS NUMBER OF EMPLOYEES Sworn Civilian RATIO OF SWORN PERSONNEL PER 1,000 POPULATION PUBLIC WORKS: MILES OF STREETS NUMBER OF MAJOR INTERSECTIONS WITH TRAFFIC SIGNALS NUMBER OF STREET LIGHTS RECREATION: PARKS NUMBER OF ACRES RECREATION FACILITIES LIBRARY SERVICES : NUMBER OF VOLUMES HOURS OF SERVICE/WEEK LIBRARY FACILITIES 59 February 18, 1874 Incorporated as a Charter City, effective July 1, 1913 CouncillManager City Council consists ofa directly elected Mayor and four (4) other council members, all elected for four (4) year terms. 513 Registered Voters: Number of votes cast General Election: Percentage of registered voters voting: 53,200 San Francisco Bay Area, 17 miles north of San Francisco, in Marin County Ranges from sea level to 900 feet 22 square miles, consisting of 17 square miles of land and 5 of water and tidelands 2 68 34 1.3 158 72 4,000 17 128.85 3 130,000 47 HOUSING (3): SINGLE FAMILY MULTI FAMILY EDUCATION: ELEMENTARY SCHOOLS MIDDLE SCHOOLS HIGH SCHOOLS PAROCHIAL SCHOOLS COLLEGES CHURCHES (4) FINANCIAL INSTITUTIONS (4): BANKS SAVINGS & LOANS CREDIT UNIONS Sources: CITY 0'1<' SAN RAFAEL MISCELLANEOUS STATISTICAL DATA JUNE 30, 1996 12,758 9,516 9 2 3 11 2 38 15 5 3 (1) = Marin County Registrar of Voters, 1992 General Election (2) = California Department of Finance Estimates (3) = Planning Department, San Rafael (Population and Housing Estimates, Department of Finance, State of California) (4) = Marin County Pacific Bell SMART Yellow Pages, May 1996 60 CITY OF SAN kAFAEL PUBLIC EMPLOYEES RETIREMENT SYSTEM ANALYSIS OF FUNDING PROGRESS UNFUNDED PENSION UNFUNDED ESTIMATED BENEFIT OBLIGATIO NET ASSETS PENSION PENSION ANNUAL AS A PERCENTAGE FISCAL AVAILABLE BENEFIT PERCENTAGE BENEFIT COVERED OF COVERED YEAR FOR BENEFITS OBLIGATIONS FUNDED OBLIGATION PAYROLL PAYROLL 1987 $ 34,270,472 $ 44,443,000 77% $ 10,172,528 $ 10,680,121 95% 1988 38,223,191 47,800,000 80% 9,576,809 11,180,372 86% 1989 42,787,972 57,900,000 82% 9,112,028 12,229,560 75% 1990 52,557,110 57,141,500 92% 4,584,390 12,470,300 37% 1991 53,797,751 62,134,700 87% 8,336,949 13,759,522 61% 1992 59,981,950 68,758,300 87% 8,776,350 13,619,000 64% 1993 67,709,149 74,282,100 91% 6,572,951 13,230,660 50% 1994 78,189,294 91,958,000 85% 13,768,706 13,945,000 99% 1995 84,535,777 98,532,000 86% 13,996,223 14,643,000 96% Source: Marin County Employees' Retirement System Note: All available infonl/ation is presented and each preceding fiscal year ended in/onl/ation will be added until ten years of trend information is reached. 61 Entitled: SRCC AGENDA ITEM #11 (2/18/97) Comprehensive Annual Financial Report ("CAFR") 1995/96 Annual Audit (Admin. Svcs.) THE ABOVE-LISTED AGENDA ITEM WILL BE SENT UNDER SEPARATE COVER: FRIDAY, FEBRUARY 14, 1997 City Manager