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1999-2000 Comprehensive Annual Financial ReportCITY OF Comprehensive Annual Financial Report For the Fiscal Year Ended June 30,2000 SRCC ITEM #7 -2/20/01) CALIFORNIA Comprehensive Annual Financial Report For the Fiscal Year Ended June 30,2000 City of San Rafael, California P.O. Box 151560 1400 Fifth Avenue San Rafael, California 94915-1560 Prepared by the Management Services Department Ken Nordhoff, Assistant City Manager/Director of Management Services Dennis Shives, Assistant Director of management Services, Finance Division MISSION STATEMENT The Mission of the City of San Rafael is to enhance the quality of life and to proved for a safe, healthy, prosperous and livable environment in partnership with the community. VISION STATEMENT Our vision for San Rafael is to be a vibrant economic and cultural center reflective of our diversity, with unique and distinct neighborhoods in a beautiful natural environment, sustained by active and informed residents and a responsible innovative local government. January 1996 Albert J. Boro, Mayor Barbara Heller, Vice Mayor Paul M. Cohen, Council Member Gary Phillips, Council Member Cyr Miller, Council Member Table of Contents Introductory Section: Letter of Transmittal................. .... ............................................. ................ i-xviii Organization Chart.................................................................................... xix Boards and Commissions......... ............................... ..... ............... ............. xx List of City Officials ............. :...................................................................... xxi Location Map............................................................................................. xxii Financial Management Policies................................................................. xxiii -xxvii Government Finance Officers Association Award ...................... ........... .... xxviii Financial Section: Independent Auditor's Report....................................................................... 1 General Purpose Financial Statements: Combined Balance Sheet -All Fund Types and Account Groups and Discretely Presented Component Units...................................... 4 - 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances -All Governmental Fund Types and Expendable Trust Funds ........ ...... ............................. ........................ 6 - 7 Combined Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual (Budget Basis) -General, Special Revenue, Debt Service and Expendable Trust Funds .... ...... 8 - 9 Combined Statement of Revenues, Expenses and Changes in Fund Equity -Proprietary Fund Type -Including Discretely Presented Component Unit................................... .............................................. 10 Combined Statement of Cash Flows -Proprietary Fund Type Including Discretely Presented Component Unit ............................... 11 Notes To General Purpose Financial Statements ........................................ 13 -55 Marin County Employees' Retirement System Schedule of Funding Program............................................................................... 58 Supplementary Information: Special Revenue Funds: Combining Balance Sheet .......................... ....................................... 64 -67 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ......................................................................... 68 -71 Recreation Revolving Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual............................................................. 72 Baypoint Lagoons Assessment District Fund -Statement of Revenues Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual ................................................. 73 Parking Services Fund -Statement of Revenues, Expenditures And Changes in Fund Balances -Budget (GAAP Basis) and Actual .................................................................................... 74 Gas Tax Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and ActuaL.. 75 Childcare Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual... 76 Equipment Replacement Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual............................................................. 77 Street Maintenance and Cleaning Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual............................................................. 78 Sewer Maintenance and Cleaning Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual............................................................. 79 Household Hazmat Facility Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ............................................................. 80 Loch Lomond Assessment District Fund -Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual................................................. 81 Library Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual... 82 Public Safety Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual... 83 Stormwater Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual... 84 Traffic and Housing Mitigation Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual............................................................. 85 Development Services Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ............................................................. 86 Grants Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual.................. 87 Parkland Dedication Fund -Statement of Revenues, Expenditures And Changes in Fund Balances -Budget (GAAP Basis) and Actual........................................................................................... 88 Emergency Medical Service Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis and Actual ................................... ........................... 89 Debt Service Funds: Combining Balance Sheet........................................... .... ............ ...... 92 -93 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..................... ................ ................. .... 94 -95 Peacock Gap Assessment District Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual............................................................. 96 Mariposa Assessment District Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual............................................................. 97 1997 Financing Authority Revenue Bonds Fund -Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual................................................. 98 1992 Agency Refunding Bonds Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual............................................................. 99 1995 Agency Refunding Bonds Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual............................................................... 100 1999 Ageancy Bond Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual............................................................. 101 Capital Projects Funds: Combining Balance Sheet. ................................................................ 104 -105 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................... 106 -107 Internal Service Funds: Combining Balance Sheet.. ............................................................... 110 -111 Combining Statement of Revenues, Expenditures and Changes in Retained Earnings .............................................. 112 -113 Combining Statement of Cash Flows ................................................ 114 -115 Trust and Agency Funds: Combining Balance Sheet .................... ........................... .................. 118 Expendable Trust Funds -Combining Statement of Revenues, Expenditures and Changes in Fund Balances..... ...... .................. 119 Business Improvement Trust Fund -Statement of Revenues, Expenditures and Changes in Fund Balances....................... ........ 120 Library Fiduciary Trust Fund -Statement of Revenues, Expenditures and Changes in Fund Balance ................. .............. 121 STATISTICAL SECTION: General Governmental Expenditures by Function........................................ 122 General Governmental Revenues by Source........ ............................... ........ 123 Secured Property Tax Levies and Collections.............................................. 124 Summary of Special Assessment Billings and Collections ........................... 125 Assessed Valuation of Taxable Property...................................................... 126 Property Tax Rates-Direct and Overlapping Governments. .......... ............... 127 Ratio of Net General Bonded Debt to Assessed Valuation and Net General Bonded Debt Per Capita..................................................... 128 Ratio of Annual Debt Service to Total General Governmental Expenditures ........................................................................................... 129 Computation of Direct and Overlapping Debt............................................... 130 Computation of Legal Debt Margin ........................................................ ....... 131 Principal Taxpayers...................................................................................... 132 Sales Tax by Industry Group........................................................................ 133 Construction Activity........... .......................................................................... 134 Schedule of Insurance in Force.................................................................... 135 Miscellaneous Statistical Data ...................................................................... 136 -137 Miscellaneous Tax Revenues: Sales Tax................................................................................................ 138 Property Tax .......... ...... ....................... ................... ...................... ........... 139 Motor Vehicle in Lieu Fees .................................... .................. ...... ......... 140 Business License Tax............................................................................. 141 Hotel (Occupancy) Tax ........................................................................... 142 Property Transfer Tax......................................... .................................... 143 Franchise Fees ....................................................................................... 144 Allocation of $1.00 of Property Tax Revenue ............................................... 145 UOlJ:JCJ5 • AJOJ:JnpOJJUI CITY OF December 29, 2000 Honorable Mayor, Members of the City Council and Residents of San Rafael Council MsmbBrs PBulM Cohen BsrbBrs Heller Cyr N. Miller Gery a Phil/ips The Comprehensive Annual Financial Report (CAFR) of the City of San Rafael for the year ended June 30, 2000, is hereby submitted as mandated by both local ordinances and State of California statutes. These ordinances and statutes require that the City of San Rafael annually issue a report on its financial position and activity, and that an independent finn of certified public accountants audits this report . Responsibility for both the data accuracy, and the completeness and fairness of the presentation, rests with management. To the best of our knowledge and belief, the data presented is accurate in all material respects and is reported in a manner that presents fairly the financial position and results of operations of the various funds, 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, Caporicci, Cropper and Larson, LLP. Further, the CAFR is prepared in accordance with procedures and policies set by the Government Finance Officers Association and the California Society of Municipal Finance Officers . The CAFR is organized into three sections : 1. Introductory section, which is unaudited, includes this letter of transmittal, an organizational chart and a list of the City of San Rafael's elected and appointed officials . 2. Financial section includes the general-purpose financial statements, related footnote disclosures, and the combining and individual fund and account group financial statements and schedules, as well as the independent auditors' report. 3. Statistical section, which is unaudited, includes selected financial and demographic information, presented on a multi-year basis. Generally, ten-year data is presented for expenditures, revenues, assessed valuation for local properties and construction activity. REPORTING ENTITY This report is prepared utilizing Government Accounting Standards Board Statement (GASB) No. 14, the purpose of which was to define the various entities that should be included in a CAFR. The financial reporting entity includes all the funds and account groups of the primary government (i .e., the City of San Rafael), as CAFR TRANSMITTAL LETTER well as all of its related component units . The definition of a primary government entity is a separately elected governing body -one that is elected by a majority of citizens in a popular, general election. Conversely, component units are separate legal entities whose elected leaders are financially accountable to or reliable on the primary entity. Component unit presentation is required in order to provide the CAFR reader a complete, comprehensive financial picture. Component units are broken down into two categories. Blended component units are part of the City's operations, and therefore their financial data is included with that of San Rafael. The second category, discrete component units, has financial data presented separate from the City's infonnation in order to recognize that they are separate legal entities with different governing bodies. Under GASB Statement No . 14, the San Rafael Redevelopment Agency and the San Rafael Joint Powers Financing Authority are considered blended component units and are combined with the City's figures in this report. The San Rafael Sanitation District is a discretely presented component unit of the City of San Rafael and is presented independent of City financial infonnation. For a further explanation of these entities, refer to Footnote No.1 in the Financial Section of the CAFR. The City participates in various organizations through fonnally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these agencies exercise full powers and authorities within the scope of the related Joint Powers Agreement including the preparation of annual budgets, accountability for all funds, and the power to make and execute contracts. Obligations and liabilities of the separate entities are not those of the City. For a further explanation of these separate entities, refer to Footnote No. 18 in the CAFR. GOVERNMENTAL STRUCTURE AND SERVICES 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 composed of five members; four are elected at large to four-year tenns. The mayor is also elected separately to a four-year tenn. The City currently has a land area of 22 square miles that includes 17 square miles of land and five of water and tide lands . San Rafael has a population of54,752. The City of San Rafael is located 17 miles north of San Francisco in Marin County. Protected by its Mediterranean like setting along the shores of the San Francisco Bay, the City enjoys a mild climate year round. As the County seat, San Rafael is considered the 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 attractions which include Muir Woods, five State parks, the San Francisco area, Oakland and the nearby wine country. The City of San Rafael provides municipal services required by statute or charter, namely: Fire, Police, Community Development (encompassing Building, Planning and Code Enforcement), Public Works, Community Services (both Recreation and ChildCare programs), Redevelopment, Library and General Administrative Services. ii CAFR TRANSMITTAL LETTER ECONONUCCONDnaON San Rafael is a regional employment center for the County. The number of jobs within the City exceeds the number of employed residents. Our diversified economic mix includes high-tech, financial, service based, entertainment and industrial businesses. Successes for the past several years have been lead by the Redevelopment Agency's commitment to a revitaIization of downtown. Partnerships with community members and the Chamber of Commerce have paved the way for both new businesses as well as expansion needs of existing companies. Tourism and travel continue to support hotel and related industries and many come from all over the world to enjoy the physical beauty of San Rafael and the surrounding areas. 1999-2000 saw several new businesses come to life in San Rafael. This included the development of a Walgreen's drug store, Clock Tower mixed used project and a Kaiser Health Clinic downtown . BMW opened a first rate automobile dealership and Snader and Associates relocated from Sausalito. Chili's restaurant and new office tenants setup shop in the northern part of town . These new businesses continue added new jobs and revenues to the City. The future continues to looks bright in San Rafael. Numerous projects are in the design process or under construction. Marin Community Foundation corporate offices should break ground next year. Wilson Equity Partners will have two buildings (over 150,000 square feet of Class A office space) ready for occupancy in December 2001. The Rafael Town Center, a mixed-use project in downtown, will be occupied next summer. A light industrial complex in North San Rafael and office complexes in East San Rafael should be under construction early next year The booming economy fueled State tax surpluses in amounts that have never been achieved in California's history. California has over $4 billion dollars in surplus. Despite focused efforts from cities statewide, only a drip of the excess taxes trickled back to local communities during the 2000 Legislative session. Property tax diversion away from local service demands continues to grow. Correction of this situation is bleak at best for the foreseeable future. This tax shift costs San Rafael in excess of$1 million per year. Assuming no new unfunded mandates occur at the hands of the State or Federal government, San Rafael should be able to refine service delivery in the coming years. Growth of economically sensitive revenues will be expected to slow. Recent rises in federal interest rates, poor stock market peIformance and rising fuel costs could combine may bring the 'boom' back to earth. Rapid growth in home values, coupled with limited supply, challenges employers and the City to seek housing and transportation solutions that can serve the San Rafael well into the future. Demographic Data A sampling of demographic information is provided to give the user an understanding of the character and diversity that make San Rafael an exceptional place to live and work. Key demographics elements for San Rafael are outlined below. iii Population: * San Rafael Coun!l: Totals-1999 54,402 247,934 White 68% 74% Latino 17% 17% Asian 7% 5% African-American 8% 3% Median Age 38.6 39.9 Mean Household Income -2000 $87,900 $100,600 College Degrees 44% 51% * -sources include San Rafael Chamber of Commerce Economic Profile 2000, California Department of Finance, Association of Bay Area Governments Projections 2000 and Bureau of Economic Analysis Regional Accounts Data (1999) Housing Units:*'" Totals-1999 22,735 104,420 Detached 10,373 62,445 Attached 2,110 9,553 Multiple 2-4 2,167 8,580 Multiple 5 plus 7,640 22,119 Mobile Homes 445 1,723 Occupied 21,828 98,225 % Vacant 3.99% 5.93% Persons! Household 2.42 2.43 ** -California Department of Finance ES Report 1999 Home Sales-1999:*** Detached-Mean Detached-Median # units sold Attached-Mean Attached-Median # of unit sold $553,249 $468,150 494 $279,780 $250,000 301 $534,776 $499,000 3246 $303,072 $272,500 1,249 *** -Marin County Assessor's Office January 2000 MAJOR INITIATIVES CAFR TRANSMITTAL LETTER 129 Economic development organizations in San Rafael include the Redevelopment Agency, Chamber of Commerce and the Marin County Economic Commission. 129 San Rafael's population rate grew at about 3% per annum from 1990 (48,404) to 1999 (54,402). 129 Unemployment rates for 1999 were 2.3% for the City and 1.6% countywide. Entry level positions are one area of concern to business. The low unemployment, coupled with high housing costs, makes attracting and retaining these type of workers a significant challenge. 129 Countywide office vacancies rates remained extremely tight -2.7% for 1999. 129 Office rents in Central San Rafael were $2.37 per square foot; in North San Rafael the rate average $2.14. Comparable rates on other Bay Area regions can be $5.00 per square foot in San Francisco and as high as $8.00 in high tech areas such as the Peninsula communities. 129 Industrial space rents averaged $0.97 per square foot for San Rafael. 129 Major shopping areas, as measured in available retails square footage, include the Downtown corridor (900,000 aggregate), the Mall at Northgate (743,000), Montecito Center (130,000) and Northgate One (113,900). 129 Total Marin County land acreage of 388,352 breaks down as 55,424 in waterways, 128,519 for public use, 23,241 subject to exemption, 97,615 contract restricted (open space and agriculture), and 83,913 as developed. The latter category denotes only 22% of all acreage is saved for development. 129 Several hotels and motels support tourism activity, lead by 235 room facilities for both the Embassy Suites and Four Points Sheraton (formerly Wyndham Gardens). Current Year Projects, Accomplishments and Service Efforts For the prior three fiscal years up through 1998-99, the City Council developed a set of "Priorities" at the initiation of the budget process. This action was completed on annual basis to coincide with budgetary cycles. In the spring of 1999, the City Council approved the use of a two-year budget. Reporting periods are still iv CAFR TRANSMITTAL LETTER completed in twelve-month increments. However, setting "Priorities" is now conducted prior to the biennial budget development. Objectives were reviewed at the 'mid period' point of the budget in June of 2000. Consistent with past practices, these Priorities were created prior to the allocation of budget resources and establishment of goals and objectives for each department. San Rafael's fiscal practices are codified in the City's Financial Management Policies. The Policies were adopted to manage current and long-term financial resources, allow for adequate controls, and most importantly, to encourage input and participation in the City's financial affairs. A list of the 1999-2001 Priorities is presented in the left-hand column of the table below. The right hand column identifies specific accomplishments or progress completed relative to each Priority. Priorilie,\j I 999-2(J(} 1: . f ccomplb;/lIllellfIProgress Further evolution of community- oriented policing and, fire services Enhance' disaster preparedness in conjunction with neighborhoods Partner with schools school violence Relocate St. Vincent de Paul dining room to Third Street site. Work cooperatively with other agencies to establish a permanent detox center. Public Safety Services ~ Police have initiated mental health partnership with County social service agencies and made sergeants more accountable for COPS (Communit¥ Oriented Public Service). ~ Instituted Boy Scout Troop 2000 in Canal neighborhoods. ~ Fire Department is transferring responsibility for community fire servicing to the engine companies. Established partnerships with Red Cross for CPR training in Canal neighborhoods. ' Planning to train DART graduates to organize neighborhoods. Completed pr~.sentations on disaster preparedness to numerous community groups. Developed a brochure in Spanish and Vietnamese for Canal aoartments. Offered five School safety forums in conjunction with San Rafael and Dixie School Districts (including one bi-lingual St. Vincent's leaders fully accepted the planned reloGation. .:. PG&E and Marriott completing purchase negotiations. .:. Facilitating PG&E move to Andersen site., subject to traffic count aoorovals in fall 2000 . • :. County seeks to move detox to Marin General Hospital . v CAFR TRANSMITTAL LETTER Priorities I 999-](J() I: . I £.'col1lplis/lIllell1l/'rogress ;)!)eteriDine~the' most ap,pro.prnafe .f .I.FQ -rn.~,,~ "~ irdle "for ltbe 'City in coo,peJ:a ti~n t ; witt'a l ,tbe 'Co~tinuum of Carre in respoliding to tile he~ds 'of p~Qple , " w,ubolit slieIter; Develop funding alternatives for unfunded infrastructure needs Wor.Ked 'With Contfuuumon CitY's administration of f" -, -_.",-fI ',-"'. .. r Community Developm~nt aI0~k ,Grartt (CDBG) programs. II Qi" A!:-" ~ ,lnfoFIllal talks with Homeward! Bound · and Ritter "House. Developed Pickleweea Advisory Bp ar g., Hela discussion ~ with County Health ab0ut services·in the ,., Canal. vi CAFR TRANSMITTAL LETTER Priorities 1999-2001: ."1 ccomplis/lIItelltlProgress Successfully implement San Rafael's portion of the Marin emergency radio system Replace critical information systems in Finance, Fire and Police Departments ~ Detailed design approved. ~ EIR approved. ~ Conducted several neighborhood meetings regarding installations at Forbes & San Rafael Hill sites. ~ Design Review Board approved September 2000, approved by Planning Commission in November and appealed to City Council for January 2001. ~ Joint City/County fire dispatch center MOU approved. Design comoletion and bid oro cess to start earlv 2001 . ~ Revised Infonnation Services Technology plans. ~ Final funding approved October 2000. ~ . Departments developing needs assessments and related bid ackages. Collaborative Nei!!hborhood Imnrovements Develop long-term strategy for child care services in conjunction with schools Improve street medians in partnership with neighborhoods Study feasibility of library facility expansion Seek opportunities with the community to implement theNorth San Rafael V~jon Strengthen 'ties to San Rafael neighb~rhoods tst Detailed design for Parkside Childcare center completed; project under construction November 2000 . tst Modular building replacements of Gallinas and Pickleweed installed in fall of 2000 . tst Public Works has completed several projects with neighbors at Stevens Place, Woodside Way, Peacock Drive, Lea Drive and Del Ganado. tst Plans for mediaJ1 improvements and entry sign in North San Rafael finished. tst Community surveys and outreach done. tst State bond issue on 'March ballot approved; options for use under study. tst · Further funding strategies under disCussion with Library Board and other stakeholders. tSi 'CuITenffocus is on median landscaping, park improvements, pool > repair, Mall ' expansion, . Fairchild reuse, PG&E site develooment, skateboard oark and oro~enade . tst Agenda reports now on City's Internet site: tst Poli~e, Fire, Community Development, Community SerVices, and Public Works doing outreach. tst Completed outreach effort in bu~get pro,cess -"San Rafael Cpoices ll -outcomes shaped community priorities for two years. tst Conducted monthly . meetings . with neighborhood associations (Federation and Coalition). tst · CounciVcommunity study session conducted fall of 1999. tst Changes approved by Planning Commission in July and City I ~~: " I Council subseauentlv. . \ ' ... vii CAFR TRANSMITTAL LETTER Priorities /999-2fJO /: .4ccomplishmellfIProgres.",· Develonmenf and Housin Complete General Plan update • Work plan approved by Council. • Steering Committee selected . • Kick-off held 5/30/00. Incorporate St. Vincent's/Silveira I • Task force recommendations into General Plan I • Successfully manage process for I • PG&E site development in North Developer application incorporates many community and staff suggestions . San Rafael I • EIR consultant selected -comoletion set for earlv 2001 . Facilitate the demolition/construction of the Macy's reuse project Enter into development agreement for hotel on Third Street site Seek ~ AdO,pt and implement labor contrracts with all employee associations Implement two-year budget. Act on recommendations of five- year finanCiaiforeeast, whenever possibi'e , issue • Excavation completed in summer 2000; foundation work begun and building permit issued . I!I Color scheme restudied and approved by Council and Design Review Board . I!I PG&E and Marriott completed purchase agreement. • St. Vincent's is supportive. • PG&E move to Andersen Drive in planning process - ending Priority Proiects aoolication outcome in fall 2000. arrangements . Requested that Century T.heaters offer Film Institute space at low rate. and St~~~jUn" viii CAFR TRANSMITTAL LETTER [0-PartiCipating in, bike pl 'an and countywide transportation plan. [0 Countywide transit tax ballot measure postponed until consensus can be reached. Coalition working on new measure. [0 Traffic model recalibrated . .' [0 Qownto\Vn signal synchroniza~t 01}. contract approved -work began September 2QOO; expected completion is · early 2001. g:o Greater traffic ' enforcement h~s ' cut i~jury accidents and OUI :. ;. ~ ,~-, If;;.} ~\. I violations :. . ,;1;', " • .:...., .' v,"'\:l, ' t, .\ s :~'\instaU~a _ot1)~elle Av~~,eir 'lIt'\nrl"'\.",o~ fa ix CAFR TRANSMITTAL LETTER I'ti(}J'ifie,~' 1999-2()() I: .-JccomplislimellfIProgress New Millennium Plan and staff to maintain order ii!. Finished. Quietest New Year's Eve in decades. and quell public anxiety due to Y2K change Test and plan to minimize internal ii!. Finished. All mission critical systems continued to function disruption due to Y2K problems properly. ~ Future Projects and Goals As outlined in the City's 1999-2001 budget, a variety of objectives have been identified for the balance of the two-year budget period. Additional projects or actions for the July 2000 to June 2001 timeframe are as follows: ,Ii Move forward on a number of new public facility projects: ~ Finalize construction of Parkside Child Care Center is time to relocate program prior to September 2001 school enrollment. ~ Design, through a community input process, a new Parking Garage at "C" and 3rd ; construction to commence fall of 2001. Also, parking revenue bonds will need to be issued to coincide with construction timetable. ~ Plans to be finalized for City/County joint Fire dispatch facility -bid process to commence shortly thereafter with facility completion targeted for early 2002. ~ Using the Pickleweed Advisory Board community survey results, Community Services staff will lead a team of City and community leaders to develop a plan for the Pickleweed Community Center facilities expansion and renovation. ~ Finalize design and cost estimates for the Court Street public plaza -have approvals and funding in place by spring 2001 in order to have plaza ready for late 2001 opening. !) The new Corporation Yard in East San Rafael should be under construction in Spring 2001 and ready for occupancy by June 2002. ,Ii Facilitate a wide variety of private investment and economic development efforts, which include: !) Working with PG&E and the Marriott Corporation to locate a new hotel on the current PG&E administrative site downtown -plans to incorporate a relocation of St. Vincent de Paul dining room. !) Continue efforts to determine if a downtown Cineplex can be built (traffic studies and design need staff analysis). !) Assist Wilson Equity Office in completing necessary approvals for the San Rafael Corporate Center -first two buildings to be occupied by the end of2001. !) Complete approvals for a light industrial complex in North San Rafael. !) Provide coordination and recommendations to City Council in order to bring closure to sale of Menzies parking lot-site is home of new corporate headquarters for the Marin Community Foundation. ~ Complete lease and permit for Marin Historical Society to build a museum in Boyd Park. x CAFR TRANSMITTAL LETTER Ii The City currently has over 50 capital improvement projects under management in Public Works. Key infrastructure efforts in the coming year consist of: :> Final design of the Terra Linda pool must be ratified by the City Council. Pool closure needs to be coordinated with community users -construction scheduled for 2001 year. :> Traffic signal projects expected to be completed include signalization at southbound Lucas VallyllOI interchange, resignalizing all intersections on 4th and 5th downtown, and a joint County/City signal and traffic improvement project on North San Pedro Road. :> The next leg of the Shoreline path should be built this year and includes a grant from ABAG for $140,000. :> The Mahon Path project, budgeted at $1,442,735, provides watershed restoration and renewed public access along the Mahon Creek. Funding includes Wilson Equity contributions, MTC County dollars and the use of State Lands resources. :> Drainage activities on the horizon represent: ~ The CalTrans North Francisco Pump station -fully funded by State monies. ~ Replacement of the Peacock Gap pump station ~ East San Rafael Drainage Pond restoration. ~ Partial removal of cattails on the Spinnaker Lagoon. :> Freitas Parkway median improvements will be completed next year -the North San Rafael VIA Committee supports this effort. :> Using STIP State funds, street rehabilitation is scheduled for Andersen Drive and Lincoln Avenue. Ii Technology needs are going to be addressed in the following ways: :> Working closely with Marin Emergency Radio Authority (MERA) representatives, complete site approvals by mid 2000-01 and finalize lease agreements and permit issuance shortly thereafter. :> Replace the Police and Fire CAD/RMS systems and Finance's accounting applications with modern, user friendly products -estimated cost is over $1,500,000 -project implementation to last through 2002. Ii Other major efforts include: :> Filling key staff positions: ~ Hiring of a transportation planner to work on regional traffic, shuttle and other transportation issues in conjunction with the City'S Traffic Engineers. ~ Per the parking study consultant recommendation, sweep a variety of decentralized downtown parking functions into a new position -Parking Services Manager. Position to be filed in summer 20001 in conjunction with rate review and new garage construction. ~ Replace the Chief of Police with a successor candidate who expands and intensifies the Community Policing programs started three years ago. => Embark on a citywide shuttle study. ~ Preparing a proposal request for an assisted living/elder care facility. => The General Plan update process moves forward led by a community steering committee. Efforts include goals setting in the spring and reports back to Council through 2001. Completion expected in the 2001-02 year. :> Redevelopment will lead a yearlong effort in 2001 to update the Agency's Plan, including a review of bonding capacity and expected life of the Agency. xi CAFR TRANSMITTAL LETTER 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. Budget Controls -The City develops a budget based upon Council priorities and Department objectives. The Financial Services Division maintains a traditional line item budget by major function. Budget control is accomplished at the functional or division level within each fund. This budget creates a comprehensive management and fiscal system aimed at achieving the objectives of each operating level consistent with those that have been set for the community by the City Council. Each department director is responsible for accomplishing goals within his or her functional area and monitoring the use of their budget allocations consistent with policies set by the City Council and monitored by the City Manager. GENERAL GOVERNMENT FUNDS Analysis o[Major Tax Revenues 1999-2000 represented a robust revenue period for the fourth consecutive year. The 'magnificent seven' (six major taxes plus motor vehicle fees) rose 11 .5% over the prior year period Tax revenues outpaced both prior year performance and same year budget expectations. Substantial tax increases are tied to the economy's regional strength and are reflected in sales, hotel and business license taxes. The table below summarizes changes from 1998-99 to 1999-2000 . Dollar Percentage FY 1999-00 Increase Increase FY 1998-99 FY 1999-00 % of (Decrease) (Decrease) Revenue Sources I, Audited Totals Audited Totals Total from 98-99 from 98-99 Sales Tax . $14,462,803 $16,202,893 42.05% $ 1,740,090 -1iQ% Property Tax ... ,;~.~, 0']:. 5,838,803 6,581,811 17.08% 743,008 12.7% \ . ~ ( Business License Tax r:!",': f 1,763,211 1,869,949 4.85% A 106,738 . '.1'" 6.1% Hotel (Occupancy) Tax '!;:"" 1,695,604 1,847,408 4.79% ,'/.. 151,804 t.. 9.0% Property Transfer Tax ~",,'l 945,275 1,186,412 3.08% I .•. • 241,137 'i,25.5% Franchise Tax "c,.<~",,'· 1 ,346,849 1,456,145 3.78% . tl\ ~ 109,296 ,n 8.1 % Commercial Develop. Tax 20,1 05 9,096 0.02% (11.009) ,. -54.8% TOTAL TAXES ~ $26,072,650 $29,153,714 75.66% $ 3,081,064 11.8% Jj! ~. Motor Vehicle In-Lieu Fees I ,2,330,324 2,598,781 6.74% .• 268,457 l < 11.5% All Other Revenues (pennits, $ 5,575,438 $ 6;779,739 17.59% " 1,204,301 .,'" 21.6% Fines & Fees) -".r -I '>. Ii General Fund Total Revenues $33,978,412 $38,532,234 100.00% $ 4,553,822 ,r, 13.4% xii CAFR TRANSMITTAL LETTER Tax Table Explanations : 1999-:ml Ceriera Furd R9JenI.es Sales Tax -Sales Tax now represents 42% of all general fund revenues (as shown in adjacent graph). A combination of new businesses, a strong desire for automobiles and robust building/construction trades resulted in an increase of 12% over 1998-99 levels. The new automobile category was up $608,159 over prior year. Use tax paid on leased vehicles was up $102,246 over 1998-99. A new BMW dealership, plus change in ownership at other locations, helped achieve this result. DAliaher • All Qher Sales taxes have increased in the automobile business reporting category by a whopping $1,701,738, or 75.8%, over 1995-96 levels. Building and construction companies were up $262,123 from 1998-99. A new Taxes " , ialF fl-.;;...t...;: .-............ r -",--, l ! • Sales Tax 42010 Solrces 24% electrical equipment company added over $150,000 of taxes to our income. Clearly, the City of San Rafael has been a winner in the boom years. Greater reliance on sales tax continues with each passing year. Property Tax -By far the major contributor to this change was the one-time return of Education Revenue Augmentation Funds (ERAF). 26% of the City's property taxes were diverted in the early nineties, on a permanent basis, as part of the Sacramento Legislature balancing the State budget. Two one-time payments occurred in 1999-2000 as a return of this local resource. $121,000 came to San Rafael as part of a statewide return for all cities. Another $344,000 came back to Marin County cities who have continued to pay 'excessive' ERAF property taxes under a State prescribed formula. Business License Tax -Adding a Business License Examiner position to the Financial Services Division in 1998 resulted in greater compliance and enfDrcement effDrts. The increase is a cDmbination .Of the Examiner's efforts and CPI tax rate adjustments allDwed under IDeal ordinance. Hotel Taxes -Tourism and business demand kept .Occupancy rates high. The 9.0% climb had mDst hDtels and mDtels up over 1998-99 levels. Embassy Suites moved up $97,272, while the Wyndham Gardens drDpped about $11,000 and Bermuda Palms rose .Over $38,469. Property Transfer Tax -Annual dDuble-digit increases in real estate values drove this 25% change. Turnover .Of pre-PropositiDn 13 and new commercial and office sites added significant new resDurces tD this category. Franchise Fees -This tax is two fold. Taxes on the local waste hauler increased by $28,009. This sum reflects an increase in service volume and customers. A rate increase was not awarded to the refuse company in 1999-2000, therefore, rates did nDt factDr intD this grDwth in franchise fees. Utility and cable DperatiDns were up about $81,288. Changes in the City's cable provider results in increased services (and consumer rates) and higher franchise fee cDllections. Motor Vehicle In-Lieu Tax -In July of 1998, the State Legislature passed a bill to reduce this tax tD all citizens of CalifDrnia by 25% effective January 1, 1999. Trigger mechanisms in the bill raised this tax reductiDn to 35% for California motorists. The majority of car taxes (vehicle license fees) are returned tD cities and xiii CAFR TRANSMITTAL LETTER cOlmties. This 35% reduction amounts to a potential loss of City revenues in excess of $760,000 per annum. The State pledged as part of this bill to backfill losses from its' General Food. Through the 1999-2000 year end, the State has paid the backfill. This source remains volatile so long as the State has the ability to manipulate collection and distribution based upon its own interest. Growth for the year is tied to increase in auto sales (tax paid on value of car). The growth of all major taxes over 1998-99 levels is significant. The majority of these moneys, which provide general police, fire, parks, library and recreation programs, has provided budget stabilization and heightened infrastructure maintenance. For 1999-2000, the economy performed at a level not seen for numerous years. Increases or decreases in governmental fund expenditures for major functions of the City compared to the prior year are detailed below: Total Expenditures Analysis of Major Expenditures by Function 6,084,501 20,938,064 6,962,9_57 3,488,279 5,439,046 1,269,439 5,712,474 3,197,003 8.0% 33.6%, 10.8% 4.1% 8.7% ' 0.7% 27.6% 6.5% 53,091,763 10,683, 16~ 100.0% 17,591,400 (6.7%) 13.5% 9.3% (16.4%) 13.7% 0.0% 241.0% 43.1% 33.1% The General Government category in the prior year included one-time expenditures for Information Services Division updates to the computer systems for Year 2000 compliance and City Hall carpeting for the 2nd & 3rd floors. In summarizing the changes for police and fire operations, Public Safety expenditures have grown over the prior year for several reasons. Compensation obligations in both bargaining groups required raises in salaries and benefits ranging from 4% to 6%. Police Department personnel changes included making the Chiefs Secretary a full time position, adding a Civil Supervisor to oversee dispatch and records, and adding one dispatcher. Incurred to date project costs for securing the Police Annex facility, design on the Fire Dispatch Center and CADIRMS expenses show up in 1999-2000. For the first time, both Departments paid their proportionate share of MERA radio system replacement operating expenses. Lastly, dramatic changes in workers compensation claims and costs added over $500,000 to benefit expenses as compared to the 1998-99. Processing environmental review applications for residential and commercial projects required spending of $133,413 in CommW1ity Development services. These expenses are offset 100% by fees charged to the applicant. The prior year reflected $471,394 in grants, some of which completed a portion of the Shoreline xiv CAFR TRANSMITTAL LETTER trail. Vacancies in the Code Enforcement and Building/Safety division netted over $100,000 in personnel savings for the year. Cultural and Recreation activities encompass the Library, Falkirk, Recreation and ChildCare programming. Childcare expenses increased about $95,000 to cover the benefit and salary increases associated with a new contract. $165,570 of reserves was consumed to pay for modular building installations and improvements. The Library added a new Education Resources function in November of 1999, adding about $65,000 to its' actual results. Recreation programming and facility reservation expenses grew $96,469 as a result of expanded programming and higher usage at the Centers. Capital replacement needs account for the Capital Outlay operations. A drop in vehicle replacement occurred while the City completed a comprehensive vehicle study. Outlays for infrastructure projects and special needs are reflected as Capital Projects. Completion of major projects is paid through a combination of grant, redevelopment, matching and City resources. Annual (which does not necessary reflect project total) costs for the 1999-2000 period were: @ $1,709,815 for the resurfacing of67 streets using STIP funds occurred in 1999-2000. @ Disability restroom improvements to City Hall for $104,868. @ Sidewalk replacement along Fifth Avenue was $121,077. @ The Olive and Palm Avenue culvert upgrade required $218,808 of storm drain fee resources. @ $598,116 was the annual expense for "The Loop" transportation improvements -project totals over three years are $1,519,593. @ The widening of Second Street consumed $1,556,921 of traffic mitigation expenses, which are paid by the developer of the San Rafael Corporate Center and other development fee based projects. @ $255,316 and $125,840 were paid for enhancements to Freitas and Hoffinan Parks, respectively. @ Linda Street utility undergrounding drew down $2,387,263 ofthe Agency's 1992 bond resources. @ Issuance ofthe 1999 Agency bonds required payments to the San Rafael Elementary ($2,200,000) and High School ($2,179,000) Districts. @ Sale of the Corporation Yard on Lindaro to the Agency was then resold to the City. The cost of land was treated as a capital expenditure totaling $2,225,866. Debt Service reflects an upward trend and is directly tied to the issuance of the 1999 Redevelopment Agency Bonds, adding $1,497,200 as principal and interest costs for the first time. Fund Equity In order to assess the increase or decrease in each governmental fund's assets, changes in fund equity from June 30, 1999 to June 30, 2000 is discussed below. 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 the current spendable resources of the fund. The General Fund's change in fund equity was as follows: General Fund 2000 1999 Decrease Fund Equity $7,212,010 $8,047,458 $835,448 xv CAFR TRANSMITTAL LETTER For the third straight year, the strong improvement is sales and other taxes allowed the General Food to pay for ongoing and capital needs and maintain a strong reserve. At year-end, the total reflects a reserve of $3,927,043 set aside to meet compensation goals, general plan amendments, loan receivables and other legal, contractual or administrative commitments. The portion of oocommitted funds represents almost 10% of budgeted expenditures, which is consistent with the City's Financial policy of a 10% General Food reserve. This latter sum is held for emergencies and cash flow cycles. SPECIAL REVENUE FUNDS 2000 1999 Decrease Food Equity $16,507,228 $16,755,509 $248,281 => The Special Revenue Funds as a group decreased in fund equity by 1.48%. Special Revenues Foods are established for several reasons, including legal statutes, administrative practices and government accounting standards. ChildCare Fund Equity dropped $331,108 to pay for portable classrooms. The Recreation Fund was able to close up $143,570 from the prior year. $7,849,259 accounts for developer impact fees held for future traffic and housing projects. Also, $2,526,898 is held in the Equipment Replacement Food to pay for future vehicle and computer asset replacements. CAPITAL PROJECT FUNDS 2000 1999 Decrease Fund Equity $28,207,122 $31,767,822 $3,560,700 Use of Redevelopment Agency project bonds, as noted above, was the major contnbutor to this decline. $6,468,380 remains in equity to complete new corporation yard garages and offices in East San Rafael. The local school and college districts have claim to $3,900,068 of bond proceeds to be used for campus needs. PROPRIETARY FUNDS The City has no enterprise funds such as water or sewer. Separately established districts throughout the City and County provide these services. The City has four internal service funds in place. Workers Compensation and Liability functions are self-insured. The City participates in a '1x>0led" insurance program for catastrophic losses. The Dental Insurance program was established in 1997 when the City chose to become self-insured. The Radio Replacement Fund was established this year to pay for MERA radio operating expenses and debt service requirements. The City, as a member ofMERA, pays 16.9010 ofall expenses of this muhi-agency entity. DEBT ADMINISTRATION The City has no outstanding general obligation bonds as of June 30, 2000. Several debts remain outstanding for the City and its component units. Outstanding principal on debt obligations of the City include $1,265,000 of special assessment bonds and $3,698,131 for the long-term portion of compensated absences. Also, capitalized leases for ambulances total $52,310. xvi CAFR TRANSMITTAL LETTER The San Rafael Redevelopment Agency has three separate tax allocation bonds outstanding. Year-end outstanding principal balances total $45,899,004 for the 1992, 1995 and 1999 series. The new Tax Allocation Bonds issued in June of 1999 received the first ever AA rating for a redevelopment bond issue in the State of California. $169,000 is due as part of a note payable to related to the financing of real property acquisition. All assessment, TRANS and tax allocation bond debt is administered by a third party custodial arrangement. Pursuant to each individual bond document, the trustee collects taxes and remits payments to bondholders based upon established schedules. 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 30,2000 was comprised pririlariIy of US. Agency notes, certificates of deposit, medium term corporate notes and pooled investments with the State of California's Local Agency Investment Fund. 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" US. agency bonds with respect to third party safekeeping. City fimds are pooled for investment yield purposes. Interest is returned to the various funds comprising the investment pool based on the fimd's cash balance at the end of each quarter. Investments are presented in the auditor's report under GASB #31. Market value adjustments have been made to all securities that the City intends to hold until maturity. 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, 2000, the property and equipment is provided for assets capitalized in the general fixed assets account group. The book value of City owned assets at June 30, 2000 is $28,526,700, excluding capital leases of$212,921. The Redevelopment Agency values are $9,271,863. 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 poo~ 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. The City's self-insured retention for workers compensation claims is $250,000 with excess coverage of $10,000,000 with United States Fidelity and Guaranty. The City contracts with a different third-party claims administrators for workers compensation claims. xvii CAFR TRANSMITTAL LETTER OTHER INFORMATION The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement in Financial Reporting to the ,City of San Rafael for its comprehensive annual financial report for the :fiscal year ended June 30, 1999. The Certificate of Achievement is a prestigious national award- recognizing confonnance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which conform to GFOA program standards. Such a report must satisfY both generally accepted accounting principles and applicable legal requirements. The GFOA certificate is valid for a period on one year only. The City of San Rafael received its third certificate last year for the June 30, 1999 CAFR Staff believes our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA again this year. 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 accounting firm of Caporicc~ Cropper and Larson, LLP perfonned the audit. The audit requirement has been complied with and the auditors' opinion has been included in this report. Acknowledgment -The preparation of this document was accomplished through the diligent, dedicated efforts of the Management Services Department's staff. Appreciation goes to Dennis Shives, Assistant Director of Management Services, Financial Services Division and Robert Behan, Accountant, who were instrumental in coordinating the annual audit in a timely and professional manner. Also, Mary Jean Knight, the Department's Secretary, helped assemble and edit the City's fourth comprehensive annual financial report. Lastly, staff support by the Mayor and City Council members, with an emphasis on community focus and customer service, has allowed the Management Services Department to bring professional level financial leadership and management home to San Rafael. Staff expect to continue producing high quality products, including award winning annual financial reports. The City Council's openness to change and support in planning and conducting the operations of the City in a responsible, progressive manner empowers staff to achieve important goals through a commitment to excellence, professionalism and community interest. Respectfully submitted, ~~~ Rod Gould City Manager xviii Organization Chart of the City of San Rafael I Electorate I I I I City Attorney I I City Council I I City Clerk I r-----------·-----------, I I : Boards & : I I I I ! Commissions I l -----------r-----------J City M~nager I Community Community Development Services Economic ~ Fire Development I r--- Library/ Management Cultural Affairs Services -~ Police Public Works I xix Organization Chart of the City of San Rafael Boards & Com missions Electorate City Council r--------------------------------------, r--------------------------------------, I I I J 1 Bicycle & Pedestrian !! Board of 1 I Advisory Committee ' , Library Trustees I I I I I I I I I , I L _______________________________ ...l L ______________________________________ ...J r-------------------------------------, r-------------------------------------, 1 Citizens Advisory ! I Cultural Affairs 1 J I I I i Com m ittee I Com mission i I I I I I I I I I f I I L ______________________________________ ...l L ____________________________________ ...J r--------------------------------------, r--------------------------------------, 1 Design Review !! Fire 1 I , I I i Board I Com mission ! I I I I I I I I I I I I L ______________________________________ ...J L ______________ . , ______________________ ...J r--------------------------------' .--, r----------------------------------, J I , I ! Geotechnical ! I Marin Commission i I t I I i Review Board I I on Aging ! I I I I I I I I I , I r L ______________________________________ ...J L ______________________________________ ...J r--------------------------------------, r--------------------------------------, J I , I 1 Marin/Sonoma Mosquito 1 1 Park and Recreation 1 ! and Vector Control I Commission! I I i District Board " 1 L ______________________________________ ...J L ______________________________________ ...J r--------------------------------------, r--------------------------------------, I I I I i Planning i l Strategic and Financial ! I I , I ! Com mission " Advisory Board i I I I I J I I I I I I I L ____________________________________ ...J L _____________________________________ ...J r---------------------·----------------'w r----------------------------------"""[ i Traffic Coordinati ng 1 i Volunteer Program i I I I I ! Committee :: Advisory Committee ! I I I I I , t I I I I I J I • I I I I I L _____________________________________ ...J L ___________________________________ . __ ...J xx City of San Rafael City Council Albert J. Boro, Mayor Barbara Heller, Vice Mayor Paul M. Cohen, Council Member Cyr N. Miller, Council Member Gary Phillips, Council Member Elected Officials Gary T. Ragghianti, City Attorney Jeanne M. Leoncini, City Clerk Management Team Rod Gould, City Manager Dave Bernardi, Public Works Director Bob Brown, Community Development Director Mike Cronin, Acting Police Chief Gus Guinan, Assistant City Attorney Nancy Mackie, Economic Development Director Bob Marcucci, Fire Chief Carlene McCart, Community Services Director Ken Nordhoff, Assistant City Manager Vaughn Stratford, Library Director xxi Pac/ftr; '1.;ean Santa Rosa o Petaluma ® , [@ " ~.--- ®NOV~IO Napa "@ rm ~-- o ~ .. \. ..... .,r-"'-__ _ SAN RAFAEL \",y I,_-r-~ ~!.,. ---. -' 0"'" - ~ .., r--.- \. .... j~ Greater San Francisco Bay Area " A ~' 5 0 5 10 15 Miles P' 'F? fi~~ , -' ,. '" : I I~ ..... / 'fI)-" ,-.. , Tlbliro,n '-o~ ;~ ._/ ~ , q Sausalito ,J :--.... ... -~~ San ® Franc/sco ~-;S~S;n _/ • FrnnCJ sco Q 1 ,) ... 7 --y.l~ :< ~ ·~·~1 ., ~, 'l ". _0 Ql!1 Vacaville ------- c...' ,...J \ -J,. Vallejo "'wO o --B Qne~,":::::'/ -./ '-"/~---j( ,.\ ~. \_~~. C~-.. .... __ ~ '" o Concord •••• g ... ' ...... I([aifa . -'. $ • San .0 I . ~ . \~ Hayward Q...... .-~ • \ .".. f remont e LOCATION MAP xx i i Financial Management Policies IT IS THE POLICY OF THE SAN RAFAEL CITY COUNCIL TO BE PRUDENT, CAREFUL AND OPEN REGARDING THE CITY'S FINANCIAL RESOURCES. RECOGNIZING THAT A BUSINESS OR RESIDENT MUST PLAN FOR BOTH SHORT AND LONG TERM FINANCIAL NEEDS, THE CITY SHALL MAKE EVERY EFFORT TO DO THE SAME. THE CITY'S FINANCIAL POLICIES SHALL INCLUDE ASSETS (BOTH HUMAN AND CAPITAL), EXPENSES, SAVINGS AND METHODOLOGY. To THIS END, THE FOLLOWING SHALL BE THE CITY'S FINANCIAL POLICIES: j_ .... _._ .... -.-._._._._ ••••• _._._._ ..... -.-._ ................. -••• _._._ ....... _ .... _._._._ ..... _._ .... _._._ ••• _ ••• _ ...... _ ... '-''''-''''-''''-'---'-'-'---'-'-'-'-'-'-''''''! i Category One l , . . , ! . , j i j i j i j i j Assets : The City's allocation of resources shall be balances in such a way so as to provide for proper management of employees, volunteers, property, buildings and equipment. t .. _._._ .... _ ........ _._._ ..... _ ..... _._ .. _._._ ...... _._._._ ...... ___ ._ ...... _ ...... _._._ ...... _._._ .. _._ .............. _ ...... _ ...... _ ...... _ ... _._ .. _. __ . ....--. __ ..... ..-._ ..... _ ...... _ ...... _._._ .... _ ..... . The City shall maintain its infrastructure Ongoing, preventative maintenance is an essential component of the City's operations. Adequate funding shall be allocated in current years to minimize expenditures in future years. Infrastructure maintenance includes, but is not limited to street, sewers, storm drains, sidewalks, lights and parks. The City shall adequately fund capital replacement To the extent possible, the cost of replacing or expanding existing facilities and equipment will be fully amortized and funded as a continuing cost of doing business. With respect to equipment, rates shall be established to recover the replacement cost of each item at the end of its useful life. Facilities will be amortized to cover ongoing maintenance and cyclical repairs and, to the extent resources are available, for the replacement or expansion of major structures. xxiii The City shall maintain competitive compensation The City wishes to continue positive labor relations, be competitive in the market place and desires to attract and retain top talent. Competitive salary and benefits will be provided to all employees within the City's means, with the expectation that services being provided by all staff shall continue to be exemplary. -.-.•. -._.-.•.. -._ ......... _.-._ ..... _._._._._._ ..... _._._._.-....... _ ..... _._ .... _._._._. __ ••• _._ .... -..... _._._._._.-..... -'-'--'-''''-'''''-'-'-'''''''''''''-'-'.'-'-'.-'-'-j Expenses Category Two The City shall know the cost of providing services, make certain tax dollars are used both efficiently and wisely, and incur debt only to the extent it does not create a long-term financial burden. i i i i i i i i i i i i i i i i ! ~.-.-.-.-.-.-.-.• -.-.-.-,.-.-... -.--.. -.-.• -.-•. -.-.-._ ...... _._._._ ........... _.-......... -.-...... _ ..................... __ ...... _ ....................... _ ..... _._._ ..... _ .•• -.... _._._ ........... _! The City must know its true costs of providing all services The City shall maintain current full business costs of providing each and every City provided service. In addition, the City shall make conscious decisions about cost recovery and/or general tax subsidy of those services that benefit only portions of the tax paying public. The City shall competitively procure goods and services Significant savings of tax dollars can be obtained through the competitive bidding of purchases of goods and services. The City shall seek market prices or proposals for all significant purchases of goods and services, including periodic market testing of internally provided services, consistent with the City's purchasing policy. Preference will be given to San Rafael businesses. The City shall oppose mandated programs that are unfunded The Federal and State Governments regularly adopt laws that mandate local compliance or implementation. The City is forced to incur additional operating costs and no funding is provided to pay for these mandates. The City shall have a general policy against unfunded mandates, including social services, which have an adverse impact to San Rafael's services and budget. xxiv The City shall only borrow what it can afford to repay Loans and other debts will be established wisely to level out costs. Refinancing of existing debt will take place when market conditions lend themselves to economic gains. The City shall not overextend indebtedness, which may cause undue financial burdens in subsequent years. j-'-'-'-'-'-'-'-'-'--'--'-'._'-'-'-'-'-'-'-'-'-"-'--'_ .. _.--.-.. _._._._._._._._._._._.-.-._._._._._._._._.-._._._ .•. _ •.•• _._._._ ....... _ ••••• _ ••. _._._ ..•. _._., • j i Category Three i • • i i i i i Savings: The City shall set aside sufficient monies to meet short and j ! long term needs and shall invest all savings in a safe ! i i i manner. i i i ! ! ... -.-.-.. -....... -.-.-.-.. -.-.-.. -..... -.-.-.-.-.,-.-~-.• -.. -.• -.... _ ..... " .... -................... _ ....... _ ...... _._ ...... _ ........................... _ ......... _._._. __ .. _._._._._ .•. _._._._ ... -... . The City Shall Maintain Prudent Reserves, including a 10% General Fund reserve . Adequate reserves of funds shall be established to meet future capital needs, to offset economic hard times, to stabilize fluctuations in cash flow requirements, and to provide for emergency situations. This shall include an ongoing 10% General Fund reserve. The City shall conservatively invest its idle cash The City will invest its idle cash in a conservative manner so as to safeguard public funds. Investment instruments will be chosen using safety, liquidity and yield as the selection criteria. _ ....... _._ ....... _._ ... _._._ ....... _._._._._._._._._._._._._._._._._._._ ..•. _._._._._ ... _._._ .... _._._._ .. _._.-.-.-.-.-.-.-.--.,-.-.. -.-.-.-~-.-.--.-.-.-.-. .,. Methods: Category Four The City shall live within its financial means, comply with all aspects of local government financial laws, and publicly I i i i i I i i i , i i i disclose major financial decisions. '.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.' ................................................................................................ J City budgets must balance with ongoing revenues equal to or greater than ongoing expenditures xxv The City Council will continue to adopt balanced budgets on an annual basis. Annual audited financial reports confirm the adoption of a balanced budget, and note any discrepancies. These financial reports are used by the financing community to gauge the City's credit worthiness, among other issues. Cost must be matched with revenues. Ongoing costs shall only be funded with ongoing revenues. One-time costs can be funded with one-time revenues. However, one-time revenues cannot fund ongoing costs. The City shall base its budget on realistic estimates, assuming normal revenue inflation will go to pay for normal inflation expenses. The City shall make its budgetary and financial decisions on conservative estimates or revenues and expenditures. Normal revenue growth, defined as increased amounts from existing sources, may not always increase at a rate equal to or faster than the expenses they support. As a result, the City should avoid using such revenue as start-up revenue money for new projects or programs that have ongoing costs. Increases in service levels should be supported by new revenue sources or reallocation of existing resources. If normal revenue inflation does not keep up with expense inflation, alternatives such as decreases in expenses or new revenue sources would be explored. The City shall make and report its financial decisions publicly Public involvement is encouraged in budgeting and financial planning. The City Council shall make all non-routine or non-administrative financial decisions in public at regularly scheduled meetings. The results of such decision making shall be reported in a timely manner through Comprehensive Annual Financial Reports, newsletters and other public information documents. The City shall comply with all requirements of generally accepted accounting principles (GAAP) as they apply to local governmental agencies The City will always conduct our financial affairs and maintain our records in accordance with GAAP as established by the Government Accounting Standards Board, so as to maintain accuracy and public confidence in our financial reporting systems. The City shall maintain a long-range fiscal perspective xxvi The City shall examine its financial condition periodically by forecasting several years into the future. In this way, adverse trends can be anticipated and better managed. The City will require that all proprietary funds (Enterprise and Internal Service) be self-supporting. Enterprise Funds Any enterprise funds established by the City will be supported by their own rates and not subsidized by the General Fund. We will assess charges against those funds at a reasonable rate for services provided by general government. Internal Service Funds The internal service funds for vehicle replacement, information systems and building maintenance should be structured to fund adequate maintenance and replacement of vehicles, office equipment, information systems and City buildings in an efficient and orderly manner. The Building Improvements Fund rates will be brought up to appropriate levels over a five-year period. The Risk Management (liability and worker's compensation) Self-Insurance Funds will continue meeting the City's insurance needs as economically as possible while maintaining sufficient levels of coverage to protect the City's employees, property and reserves. xxvii Certificate of AC.hievement for Excellence in Financial Reporting . Presented to City of San Rafael, . California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1999 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government F"!nance Officers ASSOCiation of the United States and Canada to government units and pUblic employee retirement systems whose comprehensiye annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ~h~ President jJf&~~ xxviii UOlJ:Ji1S • L e.l:Jueu.l.:J City of San Rafael General Purpose Financial Statements and Independent Auditors' Report For the year ended June 30, 2000 1 IC @L Capori c~i , Cropper & Larson, LLP Certified Public Accountants Offices located in: Irvine, California Walnut Creek. California IC GL Caporicd, Cropper & Larson, LLP Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council of the City of San Rafael San Rafael, California We have audited the accompanying general purpose financial statements of the City of San Rafael, California (City) as of and for the year ended June 30, 2000, as listed in the foregoing table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We did not audit the financial statements of the San Rafael Sanitation District (District), which is presented as a discrete component unit in the accompanying financial statements. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion on the general purpose financial statements, insofar as it relates to the amounts included for the District in the accompanying general purpose financial statements, is based on the report of the other auditors. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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 financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit and the report of other auditors provide a reasonable basis for our opinion. In our opinion, based on our audit and the report of other auditors, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City as of June 30, 2000, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated September 15, 2000 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants . Our audit was made for the purpose of forming an OpInIOn on the general purpose financial statements taken as a whole. The accompanying combining, individual fund and account group financial statements and schedules listed as supplemental information in the foregoing table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City. This information is the responsibility of the City. The information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, based on our audit and the report of other auditors, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. We did not audit the statistical information listed on the foregoing table of contents and, accordingly, we express no opinion on the statistical section. ~~'~I ~~ f L~/ (J .. P Walnut Creek, California September 15, 2000 1575 Treat Blvd .• Suite 208. WalnUt" Creek. California 94598 Tel: (925) 932-3860 Fax: (925) 932-3862 2 £: S.IN3W3.I V.IS lVI:::>NVNB 3S0dlInd lV1I3N3~ City of San Rafael Combined Balance Sheet All Fund Types and Account Groups and Discretely Presented Component Unit June 30,2000 Governmental Fund Tvres Special Debt General Revenue Sen'ice ASSETS AND OTHER DEBITS Assets: Cash and investments (Note 2) 5 3,247,032 5 16,213,100 5 967,649 Cash and investments with fiscal agent (Note 2) 2,506,075 1,090,775 Accounts receivable (Note 3) 198 ,542 611 ,9 60 Taxes receivable (Note 3) 3,261,457 1,207 1,359 Grants receivable (Note 3) 231,066 Interest receivable (Note 3) 563,955 Loans receivable (Note 3) 777,078 94,286 Due from other funds (Note 5) 51,715 42,654 Due from other governments Prepaid expenses 10,419 Other current assets General fixed assets (Note 6) Component unit fixed assets, net (Note 6) COP issuance costs, net Total assets 10,616,273 17,194,273 2,059,783 Other Debits: Amount available in debt service funds Amount to be provided for retirement of general long-term debt Total other debits Total assets and other debits S 10 ,616,273 ~ 17,1 94,2 73 ~ 2,059,783 LIABILITIES, FUND EQUITY, AND OTHER CREDITS Liabilities: Accounts payable $ 874,688 5; 598,031 S 3,345 Connection fee s payable Developer bonds payable 23,500 1,500 Insurance claims payable (Note 16) Inter es t payable Due to other funds (Note 5) 39,369 1,530 Deferred revenue (Note 4) 6,075 48,145 Capital leases (Note 7) Compensated absences (Note 7) Certificates of participation N o tes payable (Note 7) 2,500,000 Special a ssessment debt (Note 7) Bonds payable (Note 7) Total liabilities 3.404,263 687 ,045 4,875 Fund Equity and Other Credits: Investment in general fi xed a s sets Co ntributed capital (N o te 11) Retained earnings Fund balances (Note 9): Re s erved 3,952,363 4,516,204 2,054,908 Unres erved: Designated 10,329,786 Undes ignated 3,259,647 1,661,238 Total fund equity and other credits 7,212,010 16,507,228 2,054,908 Total liabilities, fund equity, and other credits S 10,616.273 $ 17.194.273 5; 2,059.783 See accompanying notes to general purpose financial statements . 4 Capital Projects 5 9,154,750 18,310,185 173,642 933,363 87,402 325,536 305,716 29,290 ,594 ~ 29,2 90 ,5 94 S 658,266 25,000 359,186 41,020 1,083,472 28,207.122 28.207.122 5; 29.290,594 Component Proprietary Fiduciary Totals Unit Fund T:a~e Fund Type Account GrouEs Primary San Rafael Totals Internal Expendable General General Long-Government Sanitation (Memorandum Service Trust and Agency Fixed Assets Term Debt (Memorandum Only) District Only) $ 5,660,428 $ 450,864 $ $ $ 35,693,823 $ 2,910,169 S 38,603,992 21,907,035 21,907,035 984,144 984,144 4,197,386 4,197,386 231,066 231,066 651,357 1,926 653,283 1,196,900 1,196,900 400,085 400,085 33,103 33,103 10,419 13,393 23,812 27,396 27,396 38,011,483 38,011,483 38,011,483 22,279,917 22,279,917 44,764 44,764 5,660,428 450,864 38,011,483 103,283,698 25,310,668 128,594,366 2,054,908 2,054,908 2,054,908 53,343,536 53,343,536 53,343,536 55,398,444 55,398,444 55,398,444 ~ 5,660,428 ~ 450,864 ~ 38,011,483 ~ 55,398,444 ~ 158,682,142 ~ 25,310,668 ~ 183,992,810 $ 8,076 $ 116 $ $ $ 2,142,522 $ 26,155 $ 2,168,677 125,750 125,750 50,000 50,000 2,398,463 2,398,463 2,398,463 109,315 109,315 400,085 400,085 95,240 95,240 52,309 52,309 52,309 3,698,131 3,698,131 3,698,131 3,856,706 3,856,706 169,000 2,669,000 2,669,000 1,265,000 1,265,000 1,265,000 50,214,004 50,214,004 50,214,004 2,406,539 116 55,398,444 62,984,754 4,117,926 67,102,680 38,011,483 38,011,483 38,011,483 7,461,602 7,461,602 3,253,889 3,253,889 13,731,140 16,985,029 3,000 38,733,597 38,733,597 447,748 10,777,534 10,777,534 4,920,885 4,920,885 3,253,889 450,748 38,011,483 95,697,388 21,192,742 116,890,130 ~ 5,660,428 ~ 450,864 ~ 38,011,483 ~ 55,398,444 ~ 158,682,142 ~ 25,310,668 ~ 183,992,810 5 City of San Rafael Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types and Expendable Trust Funds For the year ended June 30, 2000 Governmental Fund Types General Special Fund Revenue REVENUES: Taxes and special assessments $ 29,153,714 $ 1,670,513 $ Licenses and permits 730,769 115,236 Fines and forfeitures 1,365,706 80,500 Uses of money and property 331,685 905,905 Intergovernmental 5,100,520 3,818,343 Charges for current services 1,633,091 8,956,620 Other revenues 216,749 478,606 Total revenues 38,532,234 16,025,723 EXPENDITURES: Current: General government 5,460,614 217,481 Public safety 19,282,491 4,474,113 Public w o rks and parks 4,436,507 3,171,253 Community development /re development 1,611,976 50,095 Culture and recrea tion 1,443,920 4,740,492 Capital outlay 486,424 Capital Improvement /Speci a l Projects 2,728,934 5,955,837 Debt service: Principal retirement Interes t and fiscal charges Total expenditures 34,964,442 19,,095,695 REVENUES OVER (UNDER) EXPENDITURES 3,567,792 (3,069,972) OTHER FINANCING SOURCES (USES): Operating trans fers in (Note 5) 1,564,125 4,171,529 Operating transfers out (Note 5) (5,967,365) (1,349,838) Total other financing sources (uses) (4,403,240) 2,821,691 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (835,448) (248,281) FUND BALANCES: Beginning of year 8,047,458 16,755,509 Residual equity transfers out (Note 5) End of year $ 7,212,010 $ 16507,22§ ~ See accompanying notes to general purpose financial statements. 6 Debt Service 4,480,024 20,479 37,893 4,538,396 1,875,000 2,700,668 4,575,668 (37,272) 1,403 (7,316) (5,913) (43,185) 2,098,093 2,054,908 Capital Projects $ 963,013 1,312,052 107,586 310 6,296,756 8,679,717 1,252,815 10,794,543 12,047,358 (3,367,641) 2,109,528 (1,009,335) UOO,193 (2,267,448) 31,767,822 (1,293,252) $ 28,207,122 Fiduciary Fund T~£e Expendable Trust $ 29,044 35,000 22,117 86,161 47,764 33,094 -- 80,858 5,303 5,303 445,445 $ 450,748 Totals (Memorandum $ $ Only) 36,267,264 846,005 1,466,685 2,616,579 9,061,449 10,590,021 7,014,228 67,862,231 5,725,859 23,756,604 7,607,760 2,914,886 6,217,506 486,424 19,479,314 1,875,000 2,700,668 70,764,021 (2,901,790) 7,846,585 (8,333,854) (487,269) (3,389,059) 59,114,327 (1,293,252) 54,432,016 7 City of San Rafael Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -General, Special Revenue, Debt Service, and Expendable Trust Funds For the year ended June 30, 2000 General Fund Special Revenue Funds Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES: T axes and special assessments $ 27,949,456 $ 29,153,714 $ 1,204,258 $ 1,669,782 $ 1,670,513 $ 731 Licenses and permits 650,940 730,769 79,829 126,000 115,236 (10,764) Fines and forfeitures 1,276,702 1,365,706 89,004 82,000 80,500 (1,500) Uses of money and property 413,238 331,685 (81,553) 921,764 905,905 (15,859) Intergovernmental 4,883,029 5,100,520 217,491 4,181,181 3,818,343 (362,838) Charges for current services 1,807,240 1,633,091 (174,149) 9,424,622 8,956,620 (468,002) Other revenues 430,840 216,749 (214,091) 132,040 478,606 346,566 Total revenues 37,411,445 38,532,234 1,120,789 16,537,389 16,025,723 (511,666) EXPENDITURES: Current: General government . 5,586,098 5,460,614 125,484 224,444 217,481 6,963 Public safety 18,859,118 19,282,491 (423,373) 4,625,004 4,474,113 150,891 Public works and parks 4,396,258 4,436,507 (40,249) 3,353,709 3,171,253 182,456 Community development; redevelop! 1,811,705 1,611,976 199,729 732,735 50,095 682,640 Culture and recreation 1,558,728 1,443,920 114,808 5,080,664 4,740,492 340,172 Capital outlay 3,401,377 2,728,934 672,443 1,378,591 486,424 892,167 Capital improvement; special projects 11,371,891 5,955,837 5,416,054 Debt service: Principal retirement Interest and fiscal charges Total expenditures 35,613,284 34,964,442 648,842 26,767,038 19,095,695 7,671,343 REVENUES OVER (UNDER) EXPENDITURES 1,798,161 3,567,792 1,769,631 (10,229,649) (3,069,972) 7,159,677 OTHER FINANCING SOURCES (USES): Operating transfers in (Note 5) 1,564,119 1,564,125 6 4,106,529 4,171,529 65,000 Operating transfers out (Note 5) (5,896,408) (5,967,365) (70,957) (1,349,838) (1,349,838) Total other financing sources (uses) (4,332,289) _(4,403,240) (70,951) 2,756,691 2,821,691 65,000 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ (2,534,128) (835,448) $ 1,698,680 J..J.7,472,958) (248,281) $ 7,224,677 FUND BALANCES: Beginning of year 8,047,458 16,755,509 End of year $ 7,212,010 $ 16,507,228 See accompanying notes to general purpose financial statements. 8 Totals Debt Service Funds Expendable Trust Funds (Memorandum Only) Variance Variance Variance Favorable Favorable Favorable Bud~ Actual (Unfavorabl~ Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 4,509,911 $ 4,480,024 $ (29,887) $ $ $ $ 34,129,149 $ 35,304,251 $ 1,175,102 776,940 846,005 69,065 20,479 20,479 1,358,702 1,466,685 107,983 51,701 37,893 (13,808) 21,827 29,044 7,217 1,408,530 1,304,527 (104,003) 35,000 35,000 9,099,210 8,953,863 (145,347) 11,231,862 10,589,711 (642,151) 17,000 22,117 5,117 579,880 717,472 137,592 4,561,612 4,538,396 (23,216) 73,827 86,161 12,334 58,584,273 59,182,514 598,241 52,000 47,764 4,236 5,862,542 5,725,859 136,683 23,484,122 23,756,604 (272,482) 7,749,967 7,607,760 142,207 2,544,440 1,662,071 882,369 30,000 33,094 (3,094) 6,669,392 6,217,506 451,886 4,779,968 3,215,358 1,564,610 11,371,891 5,955,837 5,416,054 1,285,000 1,875,000 (590,000) 1,285,000 1,875,000 (590,000) 3,317,887 2,700,668 617,219 3,317,887 2,700,66R 617,219 4,602,887 4,575,668 27,219 82,000 80,858 1,142 67,065,209 58,716,663 8,348,546 (41,275) (37,272) 4,003 (8,173) 5,303 13,476 (8,480,936) 465,851 8,946,787 1,403 1,403 5,670,648 5,737,057 66,409 (7,316) (7,3162. (7,253,562) (7,324,519) (70,957) (7,316) (5,913) 1,403 (1,582,914) (1,587,462) (4,548) $ (48,591) (43,185) $ 5,406 $ (8,173) 5,303 $ 13,476 $ (10,063,850) (1,121,611) $ 8,942,239 2,098,093 $ 2,054,908 445,445 $ 450,748 9 27,346,505 $ 26,224,894 City of San Rafael Combined Statement of Revenues, Expenses and Changes in Retained Earnings All Proprietary Fund Types and Discretely Presented Component Unit For the year ended June 30, 2000 Component Unit San Rafael Primary Sanitation Govern men t District Internal Enterprise Service Fund OPERATING REVENUES; C harges for current services $ 3,398,451 $ Refunds 73,013 Sewer charges 4,729 ,783 Connection fees 124,876 Other operating revenues 79,633 Total operating revenues 3,471,464 4,934 ,292 OPERA TING EXPENSES; Insurance premiums and cl a ims 2,807,992 Sewage collectio n 1,632,159 Sewage tre atment 1,866,300 Depreciatio n and amortizatio n 786,445 General and administrative 206,402 Total operating expenses 2,807,992 4,491,306 OPERATING INCOME 663,472 442,986 NON-OPERATING REVENUES (EXPENSES): Property t a xe s 442 ,365 Operating trans fer in 487,269 Aid from go v e rnmental agencies 65,332 Investment income 18 8,671 97,866 Interest expense (268,760) Total non-operating revenues 675,940 336,803 NET INCOME 1,339,412 779,789 Add: depreciation expense on assets acquired by contributed capital 286,478 Increase in retained earnings 1,339,412 1,066,267 RETAINED EARNINGS: Beginning of year 621,225 12,664,873 Residual equity transfers in (Note 5) 1,293,252 End of year $ 3,253 ,889 $ 13,731,140 See accompanying notes to general purpose financial statements. 10 Totals (Memorandum Only) $ 3,398,451 73 ,013 4,729,783 124,876 79,633 8,405,756 2,807,992 1,632,159 1,866,300 786 ,445 206,402 7,299,298 1,106,458 442,365 487,269 65,332 286,537 (268,760) 1,012,743 2,119,201 286,478 2,405 ,679 13,286,098 1,293,252 $ 16,985,029 City of San Rafael Combined Statement of Cash Flows All Proprietary Fund Types and Discretely Presented Component Unit For the year ended June 30, 2000 Primary Government Internal Service CASH FLOWS FROM OPERATING ACTIVITIES: Operating income $ 663,472 $ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization Changes in current assets and liabilities: Prepaid expenses and other current assets Accounts payable and other current liabilities (12,026) Claims payable 240,338 Net cash provided by operating activities 891,784 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES: Operating transfers in 487,269 Residual equity tansfers from other funds 1,293,252 Property taxes Aid from governmental agencies Net cash provided by non-capital finapcing activities 1,780,521 CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Cash paid for capital acquisitions Interest received from certificates of participation principal cash Principal payments on certificates of participation Interest paid on certificates of participation Net cash provided (used) by capital financing activities CASH FLOWS FROM INVESTING ACTIVITIES: Income from investments 188,671 Net cash provided by investing activities 188,671 Net increase in cash and cash equivalents 2,860,976 CASH AND CASH EQUIVALENTS: Beginning of year 2,799,452 End of year $ 5,660,428 $ Component Unit Enterprise Fund 442,986 786,445 (53,932) 98,924 1,274,423 442,365 65,332 507,697 (635,731) 19,766 (210,000) (268,760) (1,094,725) 78,100 78,100 765,495 2,144,674 2,910,169 See accompanying notes to general purpose financial statements. 11 Totals (Memorandum Only) $ 1,106,458 786,445 (53,932) 86,898 240,338 2,166,207 487,26 ~ 1,293,252 442,365 65,332 2,288,218 (635,731) 19,766 (210,000) (268,760) (1,094,725) 266,771 266,771 3,626,471 4,944,126 $ 8,570,597 (;1 £1 S.1NgWg.1 V.1S lVI:)NVNB gSOd'Mfld lV'MgNg~ 0.1 Sg.10N vI City of San Rafael Notes to General Purpose Financial Statements For the year ended June 30, 2000 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of San Rafael (City) have been prepared in conformity 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 form of government and provides the following services: public safety (police and fire), public works, community development, library, parks, recreation, child care, and general administrative services. As required by GAAP, these general purpose 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 government is able to impose its will upon the potential component, or there is a possibility that the potential component unit may provide specific financial benefits or impose specific financial burdens on the primary government. In addition to having the same governing board, the City is financially accountable for the San Rafael Redevelopment Agency and the San Rafael Joint Powers Financing Authority, and management activities of both entities are conducted by City staff. The two legally separated entities are, in substance, part of the City's operations and are, therefore, blended into the City's general purpose financial statements. 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 component unit has a June 30 year end. Separately issued component unit financial statements can be obtained at the City of San Rafael, Finance Division, 1400 Fifth Avenue, Room 204, San Rafael, California 94901. Blended Component Units: San Rafael Redevelopment Agency -The San Rafael Redevelopment Agency (Agency) was established under the provisions of the Community Redevelopment Law (California Health and Safety Code, commencing with Section 33000) primarily to assist in the clearance and rehabilitation of areas determined to be in a declining condition in the City. Financial activity of the Agency commenced in July 1983. Under the Agency's Redevelopment Plan (Plan), approved in November 1982, the 15 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued Agency proposes to assist in the development of the property located in the central San Rafael business core and east San Rafael. The Agency receives incremental tax revenues on the developed property due to increases in assessed value. The Agency functions as an independent entity. The City Council serves as the governing board of the Agency. The Agency's assets, liabilities, revenues and expenditures (other than those applicable to its fixed assets and long-term 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-term debts are blended into the General Long-Term Debt Account Group. San Rafael Joint Powers Financing Authority -The San Rafael Joint Powers Financing Authority (Authority) was created by the City of San Rafael pursuant to Articles 1 and 2 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California for the purpose of assisting in the financing and refinancing of certain assessment district activities of the City. All of the Authority's assets, liabilities, revenues and expenditures are blended into the Capital Projects Funds and the Debt Service Funds. The 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 Sanitation District (District) was formed in 1947 under Section 4700 of the California Health and Safety Code to provide wastewater . transmission over the southern two-thirds of the City and adjacent unincorporated areas. The City contracts with the District to maintain the collection systems in the City and unincorporated areas. The District is governed by a three member Board of Directors who are appointed to four-year terms. The City Council of the City appoints two out of the three board members and has the ability to remove the two board members at will. The District's activities are reported as a discretely presented component unit in a separate column in the general purpose financial statements which includes the District's assets, liabilities, revenues, expenses, results of operations and cash flows. The District's fiscal year end is June 30 and its separately issued component unit financial statements can be obtained at Central Marin Sanitation Agency, Finance Department, 1301 Andersen Drive, San Rafael, California 94901. 16 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued B. 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 or expenses. These funds and account groups are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions or limitations. Governmental 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. The various funds presented in the general purpose financial statements are grouped into categories as follows. Governmental Fund Types: 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 ot 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. Proprietary Fund Types: Internal Service Funds are used to account for the financing of goods or services provided by one department or program to other departments or programs of the City, or to other governments, on a cost-reimbursement basis. Enterprise Funds are used to account for operations where it is the stated intent that costs of providing services to the general public on a continuing basis be financed or recovered primarily through user charges. 17 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, iooo 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued Fiduciary Fund Type: Expendable Trust F unds are accounte d fo r in the same manner as governmenta l funds. All trust funds of the City are classified as expendable. Account Groups: The General Fixed Assets Account Gro!dl2 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-term liabilities. C. Measurement Focus All governmental funds and expendable trust funds are accounted for on a spending or "current financial resources" measurement focus. This means that generally only current assets and current liabilities are included on their balance sheets, with the exception that the non- current portion of long-term receivables are reported on their balance sheets, offset by fund balance reserve accounts or deferred revenue. Statements of revenues, expenditures and changes in fund balances for governmental funds generally present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. All proprietary funds are accounted for on a cost of services or "economic resources" measurement focus. This means that all assets and liabilities (whether current or non- current) associated with the activity are included on the balance sheets. Their reported fund equity presents total net assets. Proprietary fund operating statements present increases (revenues) and decreases (expenses) in total net assets. 18 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2000 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued D. Basis of Accounting All governmental funds and expendable trust funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become susceptible to accrual, 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. All proprietary funds are accounted for using the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned, and expenses are recognized in the accounting period in which they are incurred. The City applied all FASB statements that do not conflict with or contradict GASB guidance. Accrued revenues include property taxes, sales taxes, transient occupancy taxes, gas taxes, 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 usually restricted 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 criterions 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. E. Budgets The City adopts a budget on a biannual basis, to be effective July 1 for the ensuing and subsequent fiscal years. The two year budget reflects estimated revenues and expenditures for each 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. Expenditures may not exceed appropriations at the departmental level, which is the legal level of control. The City Manager is authorized to transfer budgeted amounts between accounts, departments or funds; the Council must approve any increase in the City's total budget. Several supplemental appropriations were approved during the course of the year. All unencumbered appropriations lapse at year end. 19 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued The City legally adopts budgets for all its governmental funds, except for the East Francisco Boulevard Assessment District, 1915 Act Bonds and 1997 Reassessment Bonds Debt Service Funds, because the City is only required to make debt service payments in the event of bondholder default. No budget was created for the Recreation Fiduciary Expendable Trust Fund because unanticipated contribution/ donation was received at the end of fiscal year. The basis of accounting applied to the budget data presented for the General Fund, Special Revenue Funds, and the Debt Service Funds and Expendable Trust Funds is the modified accrual basis of accounting, and also conforms to GAAP. The Capital Projects Funds budgets are b"ased on a project time frame, rather than a fiscal year "operating" time frame, reappropriating unused appropriations from year to year until project completion. Supplemental appropriations for the fiscal year ended June 30, 2000, were as follows: Original Supplemental Amended Fund Budget AEEroEriations Budget General Fund $ 32,679,663 $ 2,933,621 $ 35,613,284 Special Revenue Funds 14,937,880 11,829,158 26,767,038 Debt Service Funds 6,026,512 (1,423,625) 4,602,887 Expendable Trust Funds 82,000 82,000 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. Encumbrances outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities and are carried forward in the subsequent year's budget. F. Cash, Cash Equivalents and Investments The City pools its available cash for investment purposes. The City considers pooled cash and investment amounts with original maturities of three months or less to be cash equivalents. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. 20 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset-Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizIng these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates. G. Short-Term Interfund ReceivableslPayables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" or " due to other funds" on the balance sheet. Short-term loans are classified as interfund receivables or payables. H. Property Tax Levy Collection and Maximum Rates The State of California (State) Constitution Article XIIIA provides that the combined maximum property tax rate on any given property may not exceed one percent (1%) of its assessed value unless an additional amount for general obligation debt has been approved by voters. Assessed value is calculated at 100% of market value as defined by Article XIIIA and may be adjusted by no more than two percent (2%) 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 (1%) 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 Delinquent as of Secured January 1 July 1 50% on November 1 and 50% on February 1 December 10 (for November) April 10 (for February) Unsecured January 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. 21 Ci ty of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued 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: 55% remitted on December 15 40% remitted on April 15 5% remitted on June 15 1. Taxpayer-Assessed Taxes Accrual In accordance with GASB Statement No . 22, Accounting for Taxpayer-Assessed Tax Revenues in Governmental Funds, 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 obligation 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 for the June 30 th quarter received 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 cable franchise feels on a quarterly basis and refuse franchise fees on a monthly 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 for the June 30th period received subsequent to the fiscal year end. 22 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued J. 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 Assets Account Group. Such assets include land, buildings, building improvements, furniture and equipment. Public domain "infrastructure" fixed assets, such as 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. The collection systems and facilities of the District are stated at cost less accumulated depreciation. Assets contributed have been recorded at the fair market value at the date received. Maintenance and repairs are charged to expense as incurred. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed asset. Depreciation is computed using the straight-line method over the useful lives of the assets. A summary of the useful lives of the fixed assets of the District is as follows: Subsurface lines Sewage collection facilities General plant and administrative facilities K. Long-Term Lease Accounting 50 years 5 -50 years 3 -15 years Fixed assets acquired through long-term lease contracts are capitalized at the time the contract is executed. The related assets and liabilities are recorded in the appropriate fund or account group. L. Compensated Absences 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 23 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued and vested, but unused, compensated absences expected to be paid subsequent to June 30, 2000, is recorded in the General Long-Term Debt Account Group. Effective July 2001, the requirement that employees hired before 10/79 be eligible for a portion of unused sick leave will be eliminated. No expenditure was recorded for these amounts. M. Claims and Judgments Claims and judgments that normally would be liquidated with expendable available resources are accounted for in the Internal Service Funds. N. Appropriation Limit 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, 2000, based on calculations by City's management, proceeds of taxes did not exceed related appropriations. Further, Section 5 of Article XIIIB allows the City to designate a portion of fund balance for general contingencies to be used for any purpose. o. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. P. Total Column on Combined Statements Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis and do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles. Such data is not comparable to a consolidation. Interfund eliminations have not been made. Q. Reclassification Certain reclassifications have been made to prior year financial data in order to conform with the current year presentation. 24 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 2. CASH AND INVESTMENTS The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds, which the City Treasurer invests to enhance interest earnings. The pooled interest earned is allocated quarterly to each fund based on an average of quarterly opening and closing balances of cash and investments. A. Cash Deposits The carrying amounts of the City's cash deposits were $(409,532) at June 30, 2000. Bank balances at June 30, 2000 were $396,140 which were fully insured and collateralized with securities held by the pledging financial institutions in the City's name as discussed below. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name. The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits which are fully insured up to $100,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements. B. Investments The City is authorized by State statutes and in accordance with the City's Investment Policy (the Policy) to invest in the following: o Mutual Funds composed entirely of U.s. governmental securities or other allowable investments o Negotiable Certificates of Deposit o U.s. Government Securities o Bankers Acceptances o Commercial Paper o Medium-Term Corporate Notes o California Local Agency Investment Fund (LAIF) o California Arbitrage Management Program (CAMP) o Repurchase Agreements 25 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2000 2. CASH AND INYESTMENTS, Continued o Federal Agency Obligations: o Federal Intermediate Credit Bank Debentures (FlCB) o Federal Land Bank Bonds (FLB) o Federal Home Loan Bank Notes and Bonds (FHLB) ::.J Federal National Mortgage Association Obligations (FNMA) o Small Business Administration Obligations (SBA) o Government National Mortgage Association Obligations (GNMA) o Tennessee Valley Authority Notes (TVA) o Student Loan Association Notes (SALLIE MAE) The Policy, in addition to State statutes, establishes that funds on deposit in banks must be federally insured or collateralized and investments shall (1) have maximum maturity not to exceed five years, except for repurchase agreements which may be invested in securities exceeding five years if the maturity of such investments are made to coincide, as nearly as practicable, with the expected use of funds; (2) be laddered and based on cash flow forecasts; and (3) be subject to limitations to a certain percent of the portfolio for each of the authorized investments. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments were stated at fair value using the aggregate method resulting in the following investment income: Investment Income: Interest income Net unrealized (loss) in changes in fair value of investments Total Investment Income $ 2,895,681 (322,098) $ 2,573,583 In accordance with GASB Statement No.3, cash deposits and investments are categorized separately to give an indication of the level of risk assumed by the City. Cash deposits and investments not subject to such categorization under GASB Statement No.3 are identified as "uncategorized." The City's cash deposits and investments are categorized in the following maIU1er: Deposits Category 1 -Deposits which are insured by the FDIC and held by the City or its agent in the City's name. 26 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 2. CASH AND INVESTMENTS, Continued Category 2 -Deposits which are collateralized and held by the pledging financial institution's trust department or agent in the City's name. The California Government Code requires California banks and savings and loan associations to secure the City's deposits by pledging government securities with a value of 110% of the City's deposits, or by pledging first trust deed mortgage notes having a value of 150% of the City's total deposits. Category 3 -Deposits which are uninsured or uncollateralized, including any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the City's name. Investments Category 1 -Investments which are insured by the Securities Investors Protection Corporation (SIPC), or investments which are held in definitive form by the City or the City's agent in the City's name, or investments acquired through the federal reserve book-entry system where the financial institution or broker / dealer associated with the purchase is adequately segregated from the custodial safekeeping agent on the same investments, and where the investments are recorded on the books and records of the financial institution or broker / dealer in the name of the City. Category 2 -Investments which are uninsured, where the investments are acquired through a financial institution's investment or trading department, but are held in the same financial institution's trust department and are recorded in the City's name in the trust department's systems and records. Category 3 -Investments which are uninsured, 1) where the investments are acquired through a financial institution's investment department but are held for custodial purposes in the same financial institution's safekeeping department, or 2) where the investments are acquired through a financial institution's trust department and held for custodial safekeeping by the same trust department, or 3) where the investments are acquired through, and held for safekeeping by, the same broker/dealer, or 4) where investments are not held in the City's name in the systems and records of the financial institution or broker / dealer. Uncategorized -Certain cash deposits and investments are not subject to categorization under GASB Statement No.3. 27 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 2. CASH AND INVESTMENTS, Continued Pooled cash and investments were classified by risk category as follows at June 30, 2000: Category Category Category Fair 1 2 3 Uncategorized Value City Treasury: Demand Deposits: Cash Deposits $ (409,532) $ $ $ $ (409,532) Certificates o f D e pos it 288,477 288,477 Total Demand Deposits (121,055) (121,055) Investments: Securities of u.s. G ov ernment Agenc 15,033,183 15 ,033,183 Corporate bonds and n otes 6,990 ,280 6,990,280 Local Agency Inve s tment Fund 13,791,415 13,791,415 Total Investments 22,023,463 13,79 1,415 35,814,878 Total City Treasury $ (121,055) $22,023,463 $ $ 13,791,415 $ 35,693,823 Cash and Investments with Fiscal Agent $ 21 ,9 07,035 $ 21 ,9 07,035 The City's investments with Local Agency Investment Fund (LAIF) at June 30, 2000, included a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following : • Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. • Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such a s principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables. As of June 30, 2000, the City had $13,791,415 invested in LAIF, which had invested 6.22 8% o f the pool investment funds in Structured Notes and Asset-Backed Securities. The LAIF fair value factor of 0.998865556 was used to calculate the fair value of investments in LAIF. Investments in LAIF are highly liquid, as deposits can be converted to cash within 24 hours. 28 . City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 2. CASH AND INVESTMENTS, Continued Cash and investments stated at fair value held in the City Treasury grouped by maturity date at June 30, 2000, are shown below: Maturity Fair Value Current to one year $ 16,284,119 Two to three years 10,216,138 Three to four years 3,979,542 Four to five years 5,214,024 Total $ 35,693,823 C. Cash and Investments with Fiscal Agent The funds deposited with fiscal agent can be held in cash or invested in various securities. The fiscal agent can invest in securities as outlined in trust agreements, provided the investments are within the limits imposed by State statutes upon the entity. At June 30, 2000, cash and investments with fiscal agent totaling $21,907,035 were recorded at fair value. D. Component Unit -Sanitation District Cash and Investments All of the District's cash is deposited with the County of Marin's pooled cash and investments account, except cash related to the certificates of participation which is invested in an open-end mutual fund held in trust by the District's custodial agent. The carrying amount and fair value of the pooled cash and investments account and the open-end mutual fund at June 30, 2000, amounted to $2,500,648 and $409,446, respectively, totaling $2,910,094. In accordance with Category 3, both of these types of investments are not required to be categorized as to credit risk. Fair values for the pooled cash and investments were provided by the County of Marin as the pool's sponsor. The fair value of the open-end mutual fund was based upon the unit share price at June 30, 2000. Cash and investments at June 30, 2000, consisted of the following: Cash and investments $ 2,910,094 Petty cash 75 Total $ 2,910,169 Unrestricted cash: Cash $ 2,497,103 Restricted cash: Certificates of participation 409,446 Bayside Acres 3,620 Total $ 2,910,169 29 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 3. RECEIVABLES As of June 30, 2000, receivables consisted of the following: Accounts $ 984,144 Taxes 4,197,386 Grants 231,066 Interest 651,357 Loans 1,196,900 Total $ 7,260,853 A. Accounts Receivable Accounts receivable consisted of amounts accrued in the funds in the ordinary course of operations. The total amount of accounts receivable as of June 30, 2000, was as follows: General Fund $ 198,542 Special Revenue Funds: Recreation Revolving 60,040 Parking Services 25,687 Gas Tax 102,088 Household Hazmat Facility 234,510 Public Safety 16,607 Traffic and Housing Mitigation 151,302 Parkland Dedication 21,726 Total Special Revenue Funds 611,960 Capital Projects Funds: Capital Improvement 1,925 Park Capital Projects 55,000 1992 Bonds Capital Project 116,717 Total Capital Projects Funds 173,642 Total $ 984,144 30 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 3. RECEIVABLES, Continued B. Taxes Receivable As of June 30, 2000, the following taxes receivable were outstanding: Special Debt General Revenue Service Fund Funds Funds Property taxes $ 232 ,346 $ $ Sales taxes 2,481,870 Transient occupancy taxes 319,745 Franchise fees 172,209 Miscellaneous taxes & fees 55,287 1,207 1,359 Total $ 3,261,457 $ 1,207 $ 1,359 C. Grants Receivable Capital Projects Funds $ 933,363 $ 933,363 The total amount of grants receivable as of June 30 , 2000, were as follows: D. Interest Receivable Special Revenue Funds: Childcare $ Street Maintenance and Cleaning Library Grants 5,329 15,901 38,163 171 ,673 Total $ 231,066 As of June 30, 2000, interest receivable consisted of the followings: General Fund $ 563,955 Capital Projects Funds: Low and Moderate Income Housing 87,402 Total $ 651 ,357 31 Totals $ 232,346 2,481,870 319,745 172,209 991,216 $ 4,197,386 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 3. RECEIVABLES, Continued E. Loans Receivable The City had the following loans receivable at June 30, 2000: General Fund: Loan from City M a nager Loan from Chief of Police Employees' Computer Loans $ 369,867 Total General Fund Special Revenue Funds: Traffic and Housing Mitigation One "H " Street Associates Capital Projects Funds: Low and Moderate Income Housing Marin Housing Development Centertown Associates Total Capital Projects Funds 381,891 25,320 777,078 94,286 100,000 225,536 325,536 Total $ 1,196,900 On August I, 1996, the City made a 30-year loan to the City ·Manager in the amount of $392,040, at an interest rate equivalent to the Local Agency Investment Fund interest rate, for the purchase of a horne. The loan is secured by the Deed of Trust. The principal and interest are payable monthly commencing September I, 1996 through August 31, 2026. As of June 30, 2000, the outstanding balance of the loan was $369,867. On August I, 1997, the City made a 30-year loan to the Chief of Police in the amount of $400,000, at an interest rate equivalent to the Local Agency Investment Fund interest rate, for the purchase of a horne. The loan is secured by the Deed of Trust. The principal and interest are payable monthly commencing September 1, 1997 through August 31,2027. As of June 30, 2000, the outstanding balance of the loan was $381,89l. Effective February I, 2000, the City agreed to loan employees up to $2,500 for the purchase of computer software and hardware. The loan program, which stipulates that employees may not have more than one loan outstanding, provides financial assistance from the City in the form of a no interest loan repaid through automatic payroll deductions. As of June 30, 2000, the outstanding balance of the employees' computer loans was $25,320 . $100,000 loan from One "H" Street Associates at 0% interest rate with annual payments of $2,857 and with final payment due January 18, 2034. The loan is in connection with the affordable housing project located at One "H" Street. As of June 30, 2000, the outstanding balance of the loan was $94,286. 32 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2000 3. RECEIVABLES, Continued E. Loans Receivable, Continued $100,000 from Marin Housing Development at 0% interest rate. All principal and interest shall be due on January 30, 2005. As of June 30, 2000, the balance of the loan was $100.000. $303,000 loan from Centertown Associates, Ltd. at 3% interest rate due semiannually. The final payment is due on July I, 2065. The remaining loan receivable at June 30, 2000, was $225,536. 4. DEFERRED REVENUE As of June 30, 2000, deferred revenue as related to certain receivables was recorded as follows: General Fund Special Revenue Funds: Recreation Revolving Parkland Dedication Capital Projects Funds: Bedroom Tax Park Capital Projects Total 5. INTERFUND TRANSACTIONS A. Interfund Receivables and Payables $ $ 6,075 26,419 21,726 6,020 35,000 95,240 As of June 30, 2000, balances of interfund receivables and payables were as follows: Due From Due To Other Funds Other Funds General Fund $ 51,715 $ Special Revenue Funds: Child care Fund 7,654 39,369 Parkland Dedication 35,000 Debt Service Funds: 1995 Agency Bonds 1,530 Capital Projects Funds: Capital Improvement 278,802 Bedroom Tax 25,384 Park Capital Projects 80,384 1985 Capital Project and Administration 1,530 1999 Bonds Capital Project 278,802 Total $ 400,085 $ 400,085 33 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 5. INTERFUND TRANSACTIONS, Continued B. Operating Transfers Operating transfers for the year ended June 30, 2000, were are follows: Transfers In Transfers Out General Fund $ 1,564,125 $ 5,967,365 Special Revenue Funds: Recreation Revolving 919,593 Parking Services 148,010 Gas Tax 350,000 Child care 65,000 191,866 Street Maintenance and Cleaning 1,921,164 Sewer Maintenance 76,065 Household Hazmat Facility 1,330 Public Safety 40,000 Stormwater 604,412 Grants 174,140 71,000 Parkland Dedication 100,000 278,269 Emergency Medical Services 347,220 233,298 Debt Service Funds: Peacock Gap Assessment District 2,458 Mariposa Assessment District 146 1997 Financing Authority Revenue Bonds 4,712 1992 Agency Refunding Bonds 1,403 Capital Projects Funds: Capital Improvement 1,201,596 Bedroom Tax 100,000 1985 Capital Project and Administration 907,932 1,403 1999 Bonds Capital Project 907,932 Internal Service Fund: Building Maintenance 487,269 Total $ 8,333,854 $ 8,333,854 34 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 5. INTERFUND TRANSACTIONS, Continued C. Residual Equity Transfers Residual equity transfers for the year ended June 30, 2000, were as follows : Transfers In Transfers Out Capital Projects Fund: Capital Improvement Internal Service Fund: Radio Replacement Total $ $ $ 1,293,252 1,293,252 1,293,252 $ 1,293,252 The transfers were to provide funds for the servicing of radios to be acquired through the MERA Radio Authority Agreement. 6. FIXED ASSETS A summary of changes in general fixed assets for the year ended June 30, 2000, follows: Balance Jull: 1, 1999 Additions Deletions Land and buildings $ 22,224,349 $ $ Rolling equipment 6,039,576 206,777 (199,944) Furniture and equipment 6,095,456 329,488 (44,469) Improvements other than buildings 3,360,250 Total $ 37,719,631 $ 536,265 $ (244,413) A summary of the District's fixed assets at June 30,2000, follows: Land and easements Subsurface lines Sewage collection facilities General plant and administration Construction in progress Total Less accumulated depreciation Total 35 $ 115,329 12,152,655 21,616,498 54,660 673,278 34,612,420 (12,332,503) $ 22,279,917 Balance June 30, 2000 $ 22,224,349 6,046,409 6,380,475 3,360,250 $ 38,011,483 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 7. 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, 2000, was as follows: Balance Balance July 1, 1999 Additions Deletions June 30, 2000 San Rafael Joint Powers Financing Authority: 1997 Authority Revenue Bonds $ 4,725,000 $ $ (410,000) $ 4,315,000 San Rafael Redevelopment Agency Tax Allocation Bonds: Series 1992 15,550,000 (450,000) 15,100,000 Series 1995 8,045,000 (190,000) 7,855,000 Series 1999 23,504,004 (560,000) 22,944,004 Total Tax Allocation Bonds 47,099,004 (1,200,000) 45,899,004 Special Assessment Bonds (with governmental commitment) Peacock Gap Refunding 1,375,000 (250,000) 1,125,000 Mariposa Road Assessment 155,000 (15,000) 140,000 Total Special Assessment Bonds 1,530,000 (265,000) 1,265,000 Note Payable 169,000 169,000 Capitalized Lease Obligations 79,670 (27,361) 52,309 Compensated Absences 3,507,645 190,486 3,698,131 Total long-term debt $ 57,110,319 $ 190,486 $ (1,902,361) $ 55,398,444 Component Unit -San Rafael Sanitation District: 1991 Certificates of Participation $ 4,120,000 $ $ (263,294) $ 3,856,706 36 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 7. LONG-TERM DEBT, Continued A. 1997 Authority Revenue Bonds -Original Issue $5,250,000 On January 28, 1997, the San Rafael Joint Powers Financing Authority issued the 1997 Authority Revenue Bonds in the amount of $5,250,000 bearing interest at rates from 4.00% to 6.00 %. The proceeds of the bonds were used to consolidate and refund the previously issued special assessment bonds. The 1997 Authority Revenue Bonds mature annually each September 2 from 1997 to 2011, in amounts ranging from $20,000 to $555,000. Interest is payable semiannually on March 2 and September 2. The bonds are subject to redemption in advance of maturity at the option of the City upon payment of the principal and interest accrued thereon to the date of redemption, plus a redemption premium ranging from 2.00% to 5.00%. Revenues from the Reassessment District Bonds are utilized to meet debt service requirements of the Revenue Bonds. The Reassessment District Bonds are secured by unpaid reassessments confirmed against private property within the applicable Reassessment District. The annual debt service requirements on these bonds are as follows: Year Ending June 30, PrinciEal Interest Total 2001 $ 430,000 $ 10,213 $ 440,213 2002 455,000 11,375 466,375 2003 470,000 11,985 481,985 2004 495,000 12,870 507,870 2005 520,000 13,780 533 ,780 Thereafter 1,945,000 55,051 2,000,051 Total $ 4,315,000 $ 115,274 $ 4,430,274 37 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2000 7. LONG-TERM DEBT, Continued B. 1992 Tax Allocation Refunding Bonds -Original Issue $18,615,000 On May 1, 1992, the San Rafael Redevelopment Agency (Agency) issued Tax Allocation Refunding Bonds in the amount of $18,615,000. The proceeds of the bonds were used to refund $10,905,000 outstanding principal of the Agency's Central San Rafael Redevelopment Project Tax Allocation Bonds, Series 1985, which were issued in May 1985 to fund the construction of new improvements within the Project Area and to fund additional public capital improvements. The 1992 Bonds mature annually each December 1 from 1992 to 2017, in amounts ranging from $340,000 to $1,350,000 and bear interest at rates ranging from 3.25% to 6.45%. Interest is payable semiannually on June 1 and December 1. Bonds maturing on or after December I, 2002, are subject to the optional redemption prior to maturity, in whole or in part, in inverse order of maturity on any date on or after December I, 2002, at a price equal to the principal amount, plus accrued interest on the redemption date, plus a premium ranging from 0.00% to 2.00%. The Bonds are secured by an irrevocable pledge of the tax revenues and other funds. As of June 30, 2000, the outstanding balance of the Bonds was $15,100,000. The annual debt service requirements on these bonds are as follows: Year Ending June 30, PrinciEal Interest Total 2001 $ 480,000 $ 959,581 $ 1,439,581 2002 505,000 931,741 1,436,741 2003 535,000 901,946 1,436,946 2004 570,000 869,311 1,439 ,311 2005 605,000 834,256 1,439,256 Thereafter 12,405,000 6,281,671 18,686,671 Total $ 15,100,000 $ 10,778,506 $ 25,878,506 38 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2000 7. LONG-TERM DEBT, Continued C. 1995 Tax Allocation Bonds -Original Issue $8,895,000 On October 1, 1995, the San Rafael Redevelopment Agency (Agency) issued Tax Allocation Bonds in the amount of $8,895,000. The proceeds of the bonds were used to finance certain redevelopment activities of the Agency relating to the Central San Rafael Redevelopment Project Area. The bonds mature annually each December 1 from 1995 to 2021, in amounts ranging from $170,000 to $610,000 and bear interest at rates ranging from 3.50% to 6.00%. Interest is payable semiannually on June 1 and December 1. Bonds maturing on or after December 1, 2003, are subject to optional redemption prior to maturity, in whole or in part, either in inverse order of maturity or on a pro rata basis among maturities on any date on or after December 1, 2002, at a price equal to the principal amount, plus accrued interest on the redemption date plus a premium ranging from 0.00% to 2.00%. The bonds are secured, on a parity with the 1992 bonds, by a pledge and lien on tax revenues and amounts on deposit in certain funds and accounts held by the fiscal agent. The annual debt service requirements on these bonds are as follows: Year Ending June 30, Princi,eal Interest Total 2001 $ 200,000 $ 429,978 $ 629,978 2002 210,000 421,468 631,468 2003 215,000 412,435 627,435 2004 225,000 402,750 627,750 2005 235,000 392,224 627,224 Thereafter 6,770,000 3,920,240 10,690,240 Total $ 7,855,000 $ 5,979,095 $ 13,834,095 39 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 7. LONG-TERM DEBT, Continued D. 1999 Tax Allocation Bonds -Original Issue $23,504,004 On June 16, 1999, the San Rafael Redevelopment Agency (Agency) issued Tax Allocation Bonds in the amount of $23,504,004. The proceeds of the bonds were used to finance certain redevelopment activities of the Agency relating to the Central San Rafael Redevelopment Project Area. The Current Interest Bonds mature annually each December 1 from 2000 to 2023, in amounts ranging from $560,000 to $1,195,000 and bear interest at rates ranging from 4.50% to 5.00%. Interest is payable semiannually on June 1 and December 1. Current Interest Bonds maturing on or after December I, 2008, are subject to optional redemption prior to maturity, in whole or in part, either in inverse order of maturity or on a pro rata basis among maturities on any date on or after December I, 2007, at a price equal to the principal amount, plus accrued interest on the redemption date, plus a premium ranging from 0.00% to 2.00%. The Capital Appreciation Bonds mature annually after December 1 from 2018 to 2022, in amounts ranging from $1,440,000 to $2,070,000 and bear interest at rates ranging from 5.58% to 5.60%. Interest on the Capital Appreciation Bonds will compound on each interest premium date and will be payable solely at maturity. The Bonds are secured, on parity with the 1992 and 1995 bonds, by a pledge and lien on tax revenues and amounts on deposit in certain funds and accounts held by the fiscal agent. The annual debt service requirements on these bonds are as follows: Year Ending June 30, PrinciEal Interest Total 2001 $ 500,000 $ 997,538 $ 1,497,538 2002 525,000 974,475 1,499,475 2003 550,000 949,600 1,499,600 2004 575,000 922,881 1,497,881 2005 605,000 894,856 1,499,856 Thereafter 20,189,004 9,154,232 29,343,236 Total $ 22,944,004 $ 13,893,582 $ 36,837,586 40 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2000 7. LONG-TERM DEBT, Continued E. Peacock Gap Reassessment District Limited Obligation Refunding Improvement Bonds - Original Issue $2,405,000 On October 7, 1993, the City issued Limited Obligation Refunding Improvement Bonds for the Peacock Gap Reassessment District in the amount of $2,405,000. The proceeds of the bonds were used to constitute a trust f~nd for the redemption and payment of principal and interest on the City of San Rafael Improvement Bonds of the Peacock Gap Improvement District, dated September 4, 1984. Interest is payable semi-annually on each March 2 and September 2, commencing March 2, 1994, at rates ranging from 4.00% to 5.75%. As of June 30, 2000, the outstanding balance of the Bonds was $1,125,000. The annual debt service requirements on these bonds are as follows : Year Ending June 30, PrinciEal Interest Total 2001 $ 175,000 $ 57,835 $ 232,835 2002 170,000 48,608 218,608 2003 180,000 39,068 219,068 2004 190,000 28,798 218,798 2005 195,000 17,920 212,920 Thereafter 215,000 6,181 221,181 Total $ 1,125,000 $ 198,410 $ 1,323,410 F. Mariposa Road Assessment District Limited Obligation Improvement Bonds -Original Issue $233,688 On January 6, 1993, the City issued Limited Obligation Refunding Improvement Bonds for the Mariposa Road Assessment District in the amount of $233,688. The proceeds of the bonds were used to finance the grading and paving of Mariposa Road, to fund a Reserve Fund, and to pay the costs of issuance on the Bonds. The Bonds are issued as serial Bonds and mature in various amounts on each September 2 commencing September 2, 1994 and ending September 2, 2008. Interest shall be payable commencing on March 2, 1993, and semiannually thereafter on September 2 and March 2 of each year until maturity, at rates ranging from 4.50% to 6.90%. As of June 30, 2000, the outstanding balance of the Bonds was $140,000. 41 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 7. LONG-TERM DEBT, Continued The annual debt service requirements on these bonds are as follows: Year Ending June 30, PrinciEal Interest Total 2001 $ 15,000 $ 8,851 $ 23,851 2002 15,000 7,906 22,906 2003 15,000 6,938 21,938 2004 15,000 5,955 20,955 2005 15,000 4,958 19,958 Thereafter 65,000 9,460 74,460 Total $ 140,000 $ 44,068 $ 184,068 G. Note Payable At June 30, 2000, Notes Payable 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 Agency. H. Capitalized Lease Obligations The City leased one Fire Department ambulance for five years beginning in 1998 through capital leasing arrangements in the governmental funds. The asset and obligation for agreement of the governmental funds are recorded in the General Fixed Assets Account Group and the General Long-Term Debt Account Group, respectively. The outstanding principal balance of the capital lease was $52,309 at June 30, 2000. The future minimum lease obligations are due as follows: Year Ending June 30, 2001 $ 22,762 2002 22,763 2003 11,381 Minimum lease pFlyments 56,906 Less amount representing interest (4,597) Present value of minimum lease payments $ 52,309 42 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 7. LONG-TERM DEBT, Continued 1. Compensated Absences The City's liability for vested and unpaid compensated absences (accrued vacation, sick leave, compensatory time and administrative leave) expected to be paid subsequent to the fiscal year end, is reported in the General Long-Term Debt Account Group. At June 30, 2000, the balance of compensated absences in the governmental fund types totaled $3,698,131. J. Component Unit -San Rafael Sanitation District -1991 Certificates of Participation - Original Issue $5,010,000 The District issued $5,010,000 of Certificates of Participation on October I, 1991, to refund $3,000,000 of then-outstanding 1980 Sewer Revenue bonds, to reduce its total debt service payments and to finance the acquisition and construction of additional wastewater sewer system improvements. The transaction resulted in a then-deferred amount on refunding of $33,000 which is being amortized over eight years, the then-remaining life of the Certificates of Participation as per GASB Statement No. 23, Accounting and Financial Reporting for Refundings of Debt Reported by Proprietary Activities. The deferred amount on the refunding was fully amortized as of June 30, 1998. The annual debt service requirements on these bonds are as follows: Year Ending June 30, 2001 $ 480,380 2002 476,002 2003 475,600 2004 478,420 2005 474,550 Thereafter 3,323,810 Total 5,708,762 Less interest (1,798,762) Less discount (53,294) Total $ 3,856,706 43 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 8. TAX AND REVENUE ANTICIPATION NOTES The California Statewide Communities Development Authority (Authority) is a public entity organized pursuant to an Amended and Restated Joint Exercise of Powers Agreement among a number of California counties, cities, and special districts. The Authority is authorized to issue bonds and to finance working capital for local agencies within the State of California. The Authority has a California Communities Cash Flow Financing Program that provides cash flow financing for California counties, cities, and other local agencies meeting certain criteria. The City is participating in this program under the 2000 Tax and Revenue Anticipation Bonds. The Authority, on behalf of participating agencies, has issued $520,755,000 in a series of bonds. The City's participation level is $2,500,000. The proceeds of the bond sale have been place in a twelve-month guaranteed investment contract that will yield a return of 7.32%. The maturity date for the note is June 29,2001. 9. FUND BALANCES RESERVATIONS AND DESIGNATIONS Fund balances consist of reserved and unreserved 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 balances. Portions of unreserved fund balances 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. 44 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2000 9. FUND BALANCES RESERVES AND DESIGNATIONS, Continued A detailed schedule of the fund balances at June ~O, 2000, is shown as follows: Fiduciary Governmental Fund Types Fund Types Special Debt Capital Trust and General Revenue Service Projects Agency Totals Reserved: Encumbrances $ 60,267 $ 648,218 $ $ 68,879 $ $ 777,364 Petty cash 3,800 3,000 6,800 General plan 600,099 600,099 Department savings 301,382 301,382 Employee M.O.U . 1,335,618 1,335,618 Loans receivable 777,078 94,286 325,536 1,196,900 Employee benefits 407,000 407,000 Debt service 2,054,908 2,054,908 Improvement projects 264,072 1,257,936 12,742,281 14,264,289 Information systems projects 93,216 824,193 917,409 Equipment replacement 1,968,544 1,968,544 Buildings and structures 30,000 30,000 Facility closures 30,000 30,000 Mello Roos assessment 250,000 250,000 ERAF liability 109,831 109,831 Arbitrage payments 77,150 77,150 Housing 2,967,670 2,967,670 School payments 3,900,068 3,900,068 Corporation yard 6,468,380 6,468,380 Parking equipment 205,700 205,700 Assessment d istricts/ open space 31,520 832,965 864,485 Total resPf\·ed 3,952,363 4,516,204 2,054,908 28,207,122 3,000 38,733,597 Designated: Library / End,,\\"nlPnt~ 61,241 406,916 468,157 Public satet) 114,540 114,540 Grant Pfllll'Cb 280,473 280,473 Park projl'Ch 720,822 40,832 761,654 Gas tax pn'll'Ch 1,293,458 1,293,458 Traffic mitl~,lIh'n 7,859,252 7,859,252 Total desl~n'llt'd 10,329,786 447,748 10,777,534 Unreserved, undesignated 3,259,647 1,661,238 4,920,885 Total $ 7,212,010 $ 16,507,228 $ 2,054,908 $ 28,207,122 $ 450,748 $ 54,432,016 45 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2000 10. EXCESS OF EXPENDITURES OVER APPROPRIATIONS Appropriations Expenditures Special Revenue Funds: Excess --- Library Fund $ 252,471 $ 262,712 $ 10,241 Emergency M e dical Services Debt Service Funds: Peacock Gap Assessment District Mariposa Assessment District 1997 Financing Authority Revenue Bonds Expendable Trust Funds: Library Fiduciary Fund Recreation Fiduciary Fund 11. CONTRIBUTED CAPITAL 2,843,595 2,848 ,711 327,967 329 ,85 8 26,260 26,318 667,660 672 ,009 30,000 32,074 1,020 Changes in the balances of contributed capital were as follows: Component Unit - Balance July I, 1999 Depreciation Attributable to Contributed Capital 5,116 1,891 58 4,349 2,074 1,020 Balance June 30, 2000 San Rafael Sanitation District $ 7,748,080 $ (286,478) $ 7,461,602 12. PRIOR-PERIOD ADJUSTMENT The City recorded the following adjustments to more accurately reflect the transactions in the prior years: The City restated the General Long-Term Debt Account Group to record the issuance of the San Rafael Redevelopment Agency Tax Allocation Bonds Series 1999. Adjustments in the General Long-Term Debt Account Group were as follows: As previously reported Adjustments: San Rafael Redevelopment Agency Tax Allocation Bonds Series 1999 As restated 46 General Long-Term Debt Account Group $ 33,606,315 23,504,004 $ 57,110,319 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 13. EMPLOYEES' RETIREMENT PLAN A. Plan Description The City contributes to the Marin County Employees' Retirement Fund (Fund). All full-time and permanent part-time employees are eligible to participate. 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 having attained the age of 50, or 30 years of service (20 years for safety employees) regardless of age. These benefits provisions and all other requirements are established under the County Employees Retirement Law of 1937. The City's retirement plan is included in a separately issued report from the Marin County Employees' Retirement Fund, which can be obtained from William M. Mercer, Incorporated, 3 Embarcadero Center, Suite 1500, San Francisco, CA 94111-4015. B. Funding Policy The funding policy of the Fund provides for actuarially determined periodic contributions by the City at rates such thilt sufficient assets will be available to pay Fund benefits when due. The City contributed 6.74':;. of payroll to the Fund for public safety personnel and 5.66% for other covered employees for the year ended June 30, 2000. The City, due to a collective bargaining agreement, illso has a legal obligation to contribute one-half of the employees' contribution up to a milximum of 7% of payroll for safety employees and a maximum of 5% of payroll for all other employees. Employees have an obligation to contribute the remaining portion. C. Annual Pension Cost The City's annual pension cost to the Fund for the year ended June 30, 2000, of $2,503,855 was equal to the City's required and actual contributions. The annual required contribution was determined as part of the actuarial valuation performed as of June 30, 1999. The employer rates 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 significant assumptions used in the 1999 actuarial valuation include an assumed rate of return on investment assets of 8.25%, and annual payroll increases of 5.25% per year reflecting 4.25% for inflation and approximately 1.00% for merit and longevity. The actuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the 47 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 13. EMPLOYEES' RETIREMENT PLAN, Continued market value of investments over a period of five years. The Fund also uses the level percentage-open method to amortize the unfunded actuarial liability which had fourteen years left in the amortization period . It is assumed that payroll increases at an annual inflation rate of 4.25% over the amortization period. D. Three-Year Historical Trend Infonnation Fiscal Year Annual Pension Percentage of Net Pension Ending Cost (APC) APC Contributed Obligation 6/30/98 $ 2,690,127 100% $ 6/30/99 2,480,000 100% 6/30/00 2,503,855 100% 14. 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 accounts are to be determined instead of specifying the amount of benefits the individual is to receive. The plan is administered by Phase II located at P.O. Box 10009, Costa Mesa, California 92627. 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 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 that they are hired. An eligible employee is any employee who, at any time during which the employer maintain this plan, is not accruing a benefit under the Marin County Employees' Retirement Fund. 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. 48 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2000 14. PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION RETIREMENT PLAN), Continued During the year, the City contributed $65,772 and employees contributed $65,772. The total covered payroll of employees participating in the plan for the year ended June 30, 2000, was $1,753,920. The total payroll for the year was $27,016,559. 15. 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, 2000, 181 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, 2000, those costs totaled $198,338. 16. SEGMENT INFORMATION FOR ENTERPRISE FUND The City's Enterprise Fund is comprised only of the discretely presented component unit - San Rafael Sanitation District. Segment information for the fiscal year ended June 30, 2000, is as follows: Types of goods or services provided Operating revenues Depreciation and amortization expense Operating income Tax revenues Non-operating revenues (expenses) Net income Fixed asset additions Net working capital Total assets Long-term obligations payable from operating revenues Total fund equity 49 Wastewater Transmission $ 4,934,292 786,445 442,986 442,365 336,803 779,789 635,731 2,769,531 25,310,668 3,856,706 21,192,742 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 17. 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. The City accounts for and finances its uninsured risks of loss in the Internal Service Funds. The City had established a claims liability of $2,398,463 at June 30, 2000, based on the requirement of GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, 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. Settled claims have not exceeded this coverage in any of the past three fiscal years. Changes in the general and workers' compensation claims liabilities for the fiscal years ended June 30, 1998, 1999, and 2000, are as follows: Balance at Current Year Balance at General Beginning of Claims and Changes Claim End of LiabilitY.....-Fiscal Year In Estimates Payments Fiscal Year 1997-98 $ 729,112 $ 135,381 $ (58,859) $ 805,634 1998-99 805,634 2,009,846 (2,216,282) 599,198 1999-00 599,198 252,464 (565,313) 286,349 Worker's Balance at Current Year Balance at Compensation Beginning of Claims and Changes Claim End of LiabilitY.....-Fiscal Year In Estimates Payments Fiscal Year 1997-98 $ 1,220,076 $ 421,352 $ (538,321) $ 1,103,107 1998-99 1,103,107 3,947,015 (3,491,195) 1,558,927 1999-00 1,558,927 1,383,422 (830,235) 2,112,114 50 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 17. RISK MANAGEMENT, Continued 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 risk management programs, and provides for administration of pooled coverage claims. The City paid $224,253 in premiums to the Risk Management Authority during the fiscal year ended June 30, 2000. Condensed financial information for the California Joint Powers Risk Management Authority for the fiscal year ended June 30, 2000, was as follows: Assets $ 57,847,611 Liabilities 26,846,390 Equity: Retained earnings 31,001,221 Total liabilities and equity $ 57,847,611 Revenues $ 12,673,760 Expenses 753,578 Refunds to members (2,491,515) Net increase in retained earnings $ 10,935,823 IS. JOINT VENTURES, JOINTLY GOVERNED ORGANIZATIONS AND RELATED PARTY TRANSACTIONS A. Joint Ventures 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 annual 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. The Marin County Integrated On-Line Library System (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 51 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2000 18. JOINT VENTURES, JOINTLY GOVERNED ORGANIZATIONS AND RELATED PARTY TRANSACTIONS, Continued A. Joint Ventures, Continued 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 formula. Financial statements of the System can be obtained at the County Librarian, Marin Count Free Library, Civic Center, Administration Building, San Rafael, California 94903. The Marin Street Light Acquisition Joint Powers Autlwrity (MSLAJPA) -was formed by the County of Marin and twelve local agencies to acquire street light facilities, operate the facilities during the pendency of an eminent domain action against PG&E, and the 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 agency's share of contribution was based on the number of street lights to be acquired in the local agency's individual jurisdiction in relation to the total number of street lights to be acquired by the MSLAJPA. The Marin Emergency Radio Authority -was formed on February 28, 1998 by the County of Marin and 25 local agencies within the County to plan, finance, implement, manage, own, and operate a County-wide public safety and emergency radio system. The Governing Board consists of one representative from each member. On February 1, 1999, the Authority issued the 1999 Revenue Bonds in the amount of $26,940,000 with interest rates ranging from 4.75% to 5.01%, maturing on August 15, 2016, to finance the acquisition and installation of the system. The costs of maintenance, operation, and debt service will be divided on a pro rata share based on an agreed-upon formula established by a majority of the Governing Board. The members entered into a Project Operating Agreement on February 1, 1999. Under the Operating Agreement, members are obligated to contribute service payments to cover the Authority's operation and debt service. The City's portion of the obligation is 16.913 %. The first operating service payment was in July 1999. The first debt service payment is scheduled for July 2000. The City has established a reserve in its Internal Service Fund to pay future service payments. B. Jointly Governed Organizations The Countywide Planning 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 environmental 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. 52 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 is. JOINT VENTURES, JOINTLY GOVERNED ORGANIZATIONS AND RELATED PARTY TRANSACTIONS, Continued B. Jointly Governed Organizations, Continued 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 12 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 Bi1l939. Friends of San Rafael -a California nonprofit Public Benefit Corporation -was established to help finance and accomplish the City's efforts to erect, construct and maintain public buildings, roads, monuments, plazas, parks, gardens, safety features and similar public improvements and infrastructure. 53 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 19. SAN RAF AEL SANITATION DISTRICT The San Rafael Sanitation District, a discretely presented component unit, condensed financial statements as of and for the year ended June 30, 2000, are presented below. Balance Sheet Current Assets: Cash and investments $ 2,910,169 Other current assets 120,582 Total current assets 3,030,751 General fixed assets, net of accumulated depreciation 22,279,917 Total assets $ 25,310,668 Current Liabilities: Accounts and other payables $ 261,220 Total current liabilities 261,220 Long-Term Debt: Certificates of participation 3,856,706 Total long-term debt 3,856,706 Total liabilities 4,117,926 Fund Equity: Contributed capital 7,461,602 Retained earnings 13,731,140 Total fund equity 21,192,742 Total liabilities and fund equity $ 25,310,668 54 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2000 19. SAN RAFAEL SANITATION DISTRICT, Continued Statement of Revenues, Expenses and Changes in Retained Earnings Operating Revenues $ Operating Expenses: Sewage collection and treatment Depreciation and amortization Other operating expenses Total operating expenses Operating income Non-operating revenues (expenses), net Net income Add back depreciation expense on assets acquired by contributed capital Increase in retained earnings Retained earnings -July 1, 1999 Retained earnings -June 30, 2000 $ 20. CONTINGENCIES LIABILITIES 4,934,292 3,498,459 786,445 206,402 4,491,306 442,296 336,803 779,789 286,478 1,066,267 12,664,873 13,731,140 The City is a defendant is various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's legal counsel that resolution of these matters will not have a material adverse effect on the financial condition of the City. 21. SUBSEQUENT-PERIOD EVENT The City entered into a capital lease with Municipal Finance Corporation to lease a fire truck. The total amount of the lease is $558,371 including interest of $57,621. The annual lease payment of $186,124 for three years, including interest per year, will start on April 10, 2001. 55 9S LS NOll YWHOd:NI AHY.lN3W31ddOS 03HI003H City of San Rafael Required Supplemental Information For the year ended June 30, 2000 MARIN COUNTY EMPLOYEES' RETIREMENT SYSTEM SCHEDULE OF FUNDING PROGRESS Actuarial Actuarial Actuarial Accrued Unfunded Valuation Value Liability (AAL) AAL Funded Covered Date * of Assets Entry Age (UAAL) Ratio Payroll 6/30/97 $114,506,000 $110,198,000 $ (4,308,000) 104% $16,928,000 6/30/98 131,142,000 124,239,000 (6,903,000) 106% 20,361,000 6/30/99 151,466,000 134,247,000 (17,219,000) 113% 23,293,000 * Latest information available . 58 UAAL As a % of Payroll (25.4)% (33.9)% (73.9)% 6£ NOll VW'llOtlNI lV lNaWalddfiS 09 SPECIAL REVENUE FUNDS Special Revenue Funds account for taxes and other revenues set aside in accordance with law or administrative regulation that are restricted to expenditures for specified purposes. Funds included are: Recreation Revolving Fund -Established to administer the Recreation Department's program and facility rental charge. Baypoint Lagoons Assessment District Fund -The Baypoint Lagoons Lighting and Landscape District was formed to protect and enhance wildlife habitat and water quality in Baypoint (Spinnaker) Lagoon and the adjacent diked salt marsh. Parking Services Fund -Established to maintain parking garages, lots and spaces in the Downtown Parking District (established over 40 years ago), and to pay for parking enforcement, meter collection, and downtown officer services. Gas Tax Fund -Established to receive and expend the City's allocation of the State gasoline taxes. Childcare Fund -Established to administer and account for child care programs at eleven sites throughout the City. Equipment Replacement Fund -Established to facilitate the replacement of the City's fleet of vehicles and rolling equipment, plus personal computer systems, including licensing and maintenance. Street Maintenance and Cleaning Fund -Established to maintain the City's streets, public properties and rights of way. Sewer Maintenance Fund -Established under the terms of the JP A to provide all necessary maintenance to the Sanitation District's gravity collection sewer system. Household Hazmat Facility Fund -Established to account for State mandated hazardous materials information, collection, and reporting. Expenditures included inspection of businesses for compliance with regulations. This fund also serves as the depository for a countywide Household Hazardous Waste Program. Loch Lomond Assessment District Fund -Established to provide maintenance for stormwater and geotechnic mitigation facilities. A Mello-Roos District was formed to fund this maintenance. Library Fund -Established to account for restricted library activities that are intended to be self- funding. Public Safety Fund -Established for special police services, which are intended to be self-funding. 61 SPECIAL REVENUE FUNDS, Continued Stormwater Fund -Established to provide for a self-funding storm drain maintenance program plus separate programs through the County and Bay Area to educate residents about urban runoff pollution. Traffic and Housing Mitigation Fund -Established to maintain long-term developer deposits for major housing and street improvement projects. Development Services Fund -Established to account for development activities that are supported by external sources of funds. This fund does not account for the operating costs of building, planning, and engineering, which are located in the General Fund. Grants Fund -Established to account for grants for the Library, Childcare, Police, and Falkirk Cultural Center. Parkland Dedication Fund -Established to account for long-term developer deposits used to enhance and maintain the park structure within City limits. Emergency Medical Services Fund -Established to account for the Emergency Medical Services and Transportation program that provides services to all segments of the community. 62 £9 Ci ty of San Rafael Combining Balance Sheet Special Revenue Funds June 30, 2000 ASSETS Cash and investments Accounts receivable Taxes receivable Grants receivable Loans receivable Due from other funds Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Developer Bonds Payable Due to other funds Deferred revenue Total liabilities Fund Balances: Reserved: Encumbrances Loans receivable Equipment replacement Parking equipment Building and structures Facility closures Improvement projects Assessment districts/ open space Mello Roos assessment Unreserved: Designated: Library /Endowments Public safety Grant projects Park projects Gas tax projects Traffic mitigation Undesignated Total fund balances Total liabilities and fund balances Recreation Revolving $ 157,729 60,040 $ 217,769 $ 46,332 26,419 72,751 13,889 131,129 145,018 $ 217,769 64 Baypoint Lagoons Assessment Parking Gas District Services Tax $ 31,482 $ 290,440 $ 1,192,045 25,687 102,088 38 $ 31,520 $ 316)27 $ 1,294,133 $ $ 1,612 $ 675 1,612 675 205,700 31,520 1,293,458 108,815 31,520 314,515 1,293,458 $ 31,520 $ 316,127 $ 1,294,133 Street Equipment Maintenance Childcare Replacement and Cleaning $ 67,201 $ 2,607,349 $ 686,843 5,329 15,901 7,654 $ 80,184 $ 2,607,349 $ 702,744 $ 39,096 $ 80,450 $ 24,415 39,369 78,465 80,450 24,415 562,855 1,964,044 1,719 678,329 1,719 2,526,899 678,329 $ 80,184 $ 2,607,349 $ 702,744 65 Sewer Maintenance $ 47,354 $ $ 47,354 $ $ $ 47,354 47,354 $ 47,354 $ Household Hazmat Facility 268,271 234,510 502?81 125,681 125,681 2,000 4,500 30,000 30,000 310,600 377,100 502,781 Loch Lomond Assessment District $ 321,058 91 $ 321,149 $ 250,000 71 ,149 321,149 $ 321)49 City of San Rafael Combining Balance Sheet, Continued Special Revenue Funds June 30,2000 ASSETS Cash and investments Accounts receivable Taxes receivable Grants receivable Loans receivable Due from other funds Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Developer Bonds Payable Due to other funds Deferred revenue Total liabilities Fund Balances: Reserved: Encumbrances Loans receivable Equipment replacement Parking equipment Building and structures Facility closures Improvement projects Assessment districts/ open space Mello Roos assessment Unreserved: Designated: Library / Endowments Public Safety Grants projects Park Projects Gas Tax Projects Traffic mitigation Undesignated Total fund balances Total liabilities and fund balances Librarv ( $ 36,818 38,163 $ 74,981 $ 13,740 13(740 61,241 61,241 $ 74,981 66 Traffic and Public Housing Safety Stormwater Mitigation $ 88,963 $ 286,557 $ 7,748,102 16,607 151,302 94,286 $ 105,570 $ 286,557 $ 7,993(690 $ 7,963 $ 28,944 $ 40,152 7,963 28,944 40,152 10,049 33,028 94,286 7,859,252 87,558 224,585 97,607 257,613 7,953,538 $ 105,570 $ 286,557 $ 7,993,690 Emergency Development Parkland Medical Services Grants Dedication Services Totals $ 1,268,546 $ 304,424 $ 760,354 $ 49,564 $ 16,213,100 21,726 611,960 1,078 1,207 171,673 231,066 94,286 35,000 42,654 $ 1,268,546 $ 476,097 $ 817,080 $ 50,642 $ 17,194,273 $ 9,110 $ 85,639 $ 72,784 $ 21,438 $ 598,031 1,500 1,500 39,369 21,726 48,145 10,610 85,639 94,510 21,438 687,045 12,376 1,748 12,273 648,218 94,286 1,968,544 205,700 30,000 30,000 1,257,936 1,257,936 31,520 250,000 61,241 97,609 16,931 114,540 280,473 280,473 720,822 720,822 1,293,458 7,859,252 1,661,238 1,257,936 390,458 722,570 29,204 16,507,228 $ 1,268,546 $ 476,097 $ 817,080 $ 50,642 $ 17,194,273 67 City of San Rafael Combining Statement of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds For t.he year ended June 30, 2000 Baypoint Lagoons Recreation Assessment Parking Revolving District Services REVENUES: Taxes and special assessments $ $ 25,368 $ Licenses and permits 102,165 Fines and forfeitures Uses of money and property 2,750 1,304 16,954 Intergovernmental Charges for current services 1,022,775 730,708 Other revenues 215 2,500 Total revenues 1,025,740 29,172 849,827 EXPENDITURES: General governmental 210,029 Public safety 338,043 Public works and parks 12,413 97,334 Community development/redevelopment Culture and recreation 1,801,763 Capital outlay Capital improvement/ special projects Total expenditures 1,801,763 12,413 645,406 REVENUES OVER (UNDER) EXPENDITURES (776,023) 16,759 204,421 OTHER FINANCING SOURCES (USES): Operating transfers in 919,593 Operating transfers out (148,010) Total other financing sources (uses) 919,593 (148,010) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND . OTHER FINANCING USES 143,570 16,759 56,411 FUND BALANCES: Beginning of year 1,448 14,761 258,104 End of year $ 145,018 $ 31,520 $ 314,515 68 Gas Tax $ 60,832 1,152,236 55 1,213,123 109,473 432,849 542,322 670,801 (350,000) (350,000) 320,801 972,657 $ 1,293,458 $ $ Childcare 2,788 202,889 2,102,079 2,307,756 2,336,245 167,570 2,503,815 (196,059) 65,000 (191,866) (126,866) (322,925) 324,644 1,719 Equipment Replacement $ 114,255 905,936 47,803 1,067,994 486,424 486,424 581,570 581,570 1,945,329 $ 2,526,899 Street Maintenance and Cleaning $ 17,557 1,456,799 21,093 1,495,449 1,420,743 1,919,816 3,340,559 (1,845,110) 1,921,164 1,921,164 76,054 602 ,275 $ 678,329 69 Household Loch Lomond Sewer Hazmat Assessment Maintenance Facility Dis trict $ $ $ 60,507 13,071 12,000 31,831 17,396 22,611 768,472 718,380 21,766 780,472 807,659 77,903 787,241 698,541 53 698,541 787,241 53 81 ,931 20,418 77,850 (76 ,065) (1,330) (76,065) (1,330) 5,866 19,088 77,850 41,488 358,012 243,299 $ 47,354 $ 377,100 $ 321,149 (continued) City of San Rafael Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued Special Revenue Funds For ~he year ended June 30, 2000 Traffic and Public Housing Library Safety Stormwater Mitigation REVENUES: Taxes and special assessments $ $ $ $ Licenses and permits Fines and forfeitures 500 Uses of money and property 45,954 2,735 16,060 420,252 Intergovernmental 207,453 174,424 Charges for current services 7,320 5,629 766,047 530,462 Other revenues 15,338 2,900 7,462 176,188 Total revenues 276,065 185,688 790,069 1,126,902 EXPENDITURES: General governmental Public safety 130,295 Public works and parks 831,844 852 Community development/redevelopment Culture and recreation 262,712 Capital Outlay Capital Improvement/Special Projects 616,115 2,208,826 Total expenditures 262,712 130,295 1,447,959 2,209,678 REVENUES OVER (UNDER) EXPENDITURES 13,353 55,393 (657,890) (1,082,776) OTHER FlNANC) NG SOURCES (USES): Operating transfers in 40,000 604,412 Operating transfers out Total other financing sources (uses) 40,000 604,412 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 13,353 95,393 (53,478) (1,082,776) FUND BALANCES: Beginning of year 47,888 2,214 311,091 9,036,314 End of year $ 61,241 $ 97,607 $ 257,613 $ 7,953,538 70 Development Services $ 60,833 51,782 46,240 125,501 284,356 50,095 83,317 133,412 150,944 150,944 1,106,992 $ 1,257,936 $ $ Grants 80,000 24,931 540,149 164,867 27,954 837,901 7,452 369,823 339,772 170,846 887,893 ( 49,992) 174,140 (71,000) 103,140 53,148 337,310 390,458 $ $ Parkland Dedication 57,473 10,000 18,105 29,831 115,409 356,498 356,498 (241,089) 100,000 (278,269) (178,269) (419,358) 1,141,928 722,570 $ $ 71 Emergency Medical Services 1,584,638 1,169,600 2,754,238 2,848,711 2,848,711 (94,473) 347,220 (233,298) 113,922 19,449 9,755 29,204 $ Totals 1,670,513 115,236 80,500 905,905 3,818,343 8,956,620 478,606 16,025,723 217,481 4,474,113 3,171,253 50,095 4,740,492 486,424 5,955,837 19,095,695 (3,069,972) 4,171,529 (1,349,838) 2,821,691 (248,281) 16,755,509 $ 16,507,228 (concluded) City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Recreation Revolving Special Revenue Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES : Uses of money and property $ 3,739 $ 2,750 $ (989) Charges for current services 1,093,349 1,022,775 (70,574) Other revenues 7,740 215 (7,525) Total revenues 1,104,828 1,025,740 (79,088) EXPENDITURES: Culture and recreation 2,027,675 1,801 ,763 225,912 Total expenditures 2,027,675 1,801 ,763 225,912 REVENUES OVER (UNDER) EXPENDITURES (922,847) (776,023) 146,824 OTHER FINANCING SOURCES: Operating transfers in 919,593 919,593 Total other financing sources 919,593 919,593 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES $ (3,254) 143,570 5) 146,824 FUND BALANCES: Beginning of year 1,448 End of year $ 145,018 72 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Baypoint Lagoons Assessment District Special Revenue Fund For the year ended June 30,2000 Variance Favorable Budg et Actual (Unfavorable) REVENUES: Taxes and special assessments $ 27,500 $ 25,368 $ (2 ,132) Uses of money and property 200 1,304 1,104 Other r e venues 2,500 2,500 Total revenues 27,700 29 ,172 1,472 EXPENDITURES: Public works and parks 26,144 12,413 13,731 Total expenditures 26 ,144 12,413 13,731 REVENUES OVER (UNDER) EXPENDITURES $ 1,556 16,759 $ 15,203 FUND BALANCES: Beginning of year 14,761 End of year $ 31 ,520 73 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Parking Services Special Revenue Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Licenses and pennits $ 114,000 $ 102,165 $ (11,835) Uses of money and property 11,062 16 ,954 5,892 Charges for current services 619,480 730,708 111,228 Total revenues 744,542 849,827 105,285 EXPENDITURES: General governmental 217,286 210,029 7,257 Public safety 33 7,307 338,043 (736) Public works and parks 105,443 97,334 8,109 Total expenditures 660,03 6 645,406 14,630 REVENUES OVER (UNDER) EXPENDITURES 84,506 204,421 119,915 OTHER FINANCING (USES): Operating transfers out (148 ,010) (148,010) Total other financing sources (uses) (148,010) (148,010) REVENUES OVER (UNDER) EXPENDITURES AND OTHER FINANCING (USES) $ (63,504) 56,411 $ 119,915 FUND BALANCES: Beginning of year 258,104 End of year $ 314,515 74 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Gas Tax Special Revenue Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Uses of money and property $ 52,529 $ 60,832 $ 8,303 Intergovernmental 1,068,942 1,152,236 83,294 Other revenues 55 55 Total revenues 1,121,471 1,213,123 91,652 EXPENDITURES: Public works and parks 81,726 109,473 (27,747) Capital improvement/special projects 1,407,299 432,849 974,450 Total expenditures 1,489,025 542,322 946,703 REVENUES OVER (UNDER) EXPENDITURES (367,554) 670,801 1,038,355 OTHER FINANCING (USES): Operating transfers out (350,000) (350,000) Total other financing (uses) (350,000) (350,000) REVENUES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ ~717,554~ 320,801 $ 1,038,355 FUND BALANCES: Beginning of year 972,657 End of year $ 1,293,458 75 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and ACtual Childcare Special Revenue Fund For the year ended June 30,2000 Varian ce Favorable Budget Actual (Unfavorable) REVENUES: Uses of money and property $ 29,997 $ 2,788 $ (27,209) Interg overnmental 227,276 202,889 (24,387) Charges for current services 2,222,046 2,102,079 (119,967) Total r e venues 2,479,319 2,307,756 (171,563) EXPENDITURES: Culture and recreation 2,525,932 2,336,245 189,687 Capital improvement/ special projects 105 ,952 167,570 (61,618) Total expenditures 2,631,884 2,503,815 128,069 REVENUES OVER (UNDER) EXPENDITURES (152,565) (196,059) (43,494) OTHER FINANCING (USES): Operating transfer in 65,000 65,000 Operating transfers out (191,866) (191,866) Total other financing (uses) (191,866) (126,866) 65,000 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING (USES) $ (344,431) (322,925) $ 21,506 FUND BALANCES: Beginning of year 324,644 End of year $ 1,719 76 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Equipment Replacement Special Revenue Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Uses of money and property $ 104,865 $ 114,255 $ 9,390 Charges for current services 905,936 905,936 Other revenues 2,500 47,803 45,303 Total revenues 1,013,301 1,067,994 54,693 EXPENDITURES: Capital outlay 1,378,591 486,424 892,167 Total expenditures 1,378,591 486,424 892,167 REVENUES OVER (UNDER) EXPENDITURES $ (365,290) 581,570 $ 946,860 FUND BALANCES: Beginning of year 1,945,329 End of year $ 2,526,899 77 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Street Maintenance and Cleaning Special Revenue Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES : Uses of money and property $ 25,226 $ 17,557 $ (7,669) Intergovernmental 1,480,800 1,456,799 (24,001) Other revenues 2,300, 21,093 18,793 Total revenues 1,508,326 1,495,449 (12,877) EXPENDITURES: Public works and parks 1,492,327 1,420,743 71,584 Capital improvement/ special projects 2,363,671 1,919,816 443,855 Total expenditures 3,855,998 3,340,559 515,439 REVENUES OVER (UNDER) EXPENDITURES __ (2,347,672) (1,845,110) 502,562 OTHER FINANCING SOURCES: Operating transfers in 1,921,164 1,921,164 Total other financing sources 1,921,164 1,921,164 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES $ (426,508) 76,054 $ 502,562 FUND BALANCES: Beginning of year 602,275 End of year $ 678,329 78 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Sewer Maintenance Special Revenue Fund For the year ended June 30,2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: U ses of money and property $ 12,000 $ 12,000 $ Charges for current services 821,826 768,472 (53,354) Total revenues 833,826 780,472 (53,354) EXPENDITURES: Public works and parks 799,249 698,541 100,708 Total expenditures 799,249 698 ,541 100,708 REVENUES OVER (UNDER) EXPENDITURES 34,577 81,931 47,354 OTHER FINANCING (USES): Operating trans fers out (76,065) (76 ,065) Total other financing (uses) (76,065) (76,065) REVENUES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ (41,488) 5 ,866 $ 47,354 FUND BALANCES: Beginning of y e ar 41,488 End of year $ 47,354 79 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Household Hazmat Facility Special Revenue Fund For the year ended June 30,2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Licenses and permits $ 12,000 $ 13,071 $ 1,071 Uses of money and property 16,462 31,831 15,369 Intergovernmental 15,000 22,611 7,611 Charges for current services 824,255 718,380 (105,875) Other revenues 20,500 21,766 1,266 Total revenues 888,217 807,659 (80,558) EXPENDITURES: Public safety 905,414 787,241 118,173 Total expenditures 905,414 787 ,241 118,173 REVENUES OVER (UNDER) EXPENDITURES (17 ,197) 20,418 37,615 OTHER FINANCING (USES): Operating transfers out (1,330) (1,330) Total other financing (uses) (1,330) (1,330) REVENUES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ (18,527) 19,088 $ 37,615 FUND BALANCES: Beginning of year 358,012 End o f year $ 377,100 80 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Loch Lomond Assessment District Special Revenue Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Taxes and special assessments $ 60,129 $ 60,507 $ 378 Uses of money and property 11,584 17,396 5,812 Total revenues 71,713 77,903 6,190 EXPENDITURES: Public works and parks 5,335 53 5,282 Total expenditures 5,335 53 5,282 REVENUES OVER (UNDER) EXPENDITURES $ 66,378 77,850 $ 11,472 FUND BALANCES: Beginning of year 243,299 End of year $ 321,149 81 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Library Special Revenue Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Uses of money and property $ 38,176 $ 45,954 $ 7,778 Intergovernmental 220,767 207,453 (13,314) Charges for current services 6,000 7,320 1,320 Other revenues 10,000 15,338 5,338 Total revenues 274,943 276,065 1,122 EXPENDITURES: Culture and recreation 252,471 262,712 (10,241) Total expenditures 252,471 262,712 (10,241) REVENUES OVER (UNDER) EXPENDITURES $ 22,472 13,353 $ (9,119) FUND BALANCES: Beginning of year 47,888 End of year $ 61,241 82 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Public Safety Special Revenue Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Uses of money and property $ 341 $ 2,735 $ 2,394 Intergovernmental 127,000 174,424 47,424 Charges for current services 3,000 5,629 2,629 Other revenues 2,900 2,900 Total revenues 130,341 185,688 55,347 EXPENDITURES: Public s a fet y 159,235 l30,295 28,940 Total expenditures 159,235 l30,295 28,940 REVENUES OVER (UNDER) EXPENDITURES (28,894) 55,393 84,287 OTHER FINANCING SOURCES: Operating transfers in 40,000 40,000 Total other financing sources 40,000 40,000 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES $ 11,106 95,393 $ 84,287 FUND BALANCES: Beginning of year 2,214 End of year $ 97,607 83 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Stormwater Special Revenue Fund For the year ended June 30,2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Fines and forfeitures $ 2,000 $ 500 $ (1,500) Uses of money and property 28,498 16,060 (12,438) Charges for current services 775,780 766,047 (9,733) Other revenues 7,462 7,462 Total revenues 806,278 790,069 (16,209) EXPENDITURES: Public works and parks 843,485 831,844 11,641 Capital improvement / special projects 752,363 616,115 136,248 Total expenditures 1,595,848 1,447,959 147,889 REVENUES OVER (UNDER) EXPENDITURES (789,570) (657,890) 131,680 OTHER FINANCING SOURCES: Operating transfers in 604,412 604,412 Total other financing sources 604 ,4 12 604,412 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES $ (185,158) (53,478) $ 131,680 FUND BALANCES: Beginning of year 311,091 End of year $ 257,613 84 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Traffic and Housing Mitigation Special Revenue Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Uses of money and property $ 452,411 $ 420,252 $ (32,159) Charges for current services 625,000 530,462 (94,538) Other r evenues 176,188 176,188 Total revenues 1,077,411 1,126,902 49,491 EXPENDITURES: Public works and parks 852 (852) Capital improvement/ special projects 5,373,836 2,208,826 3 ,165,010 Total expenditures 5,373,836 2,209 ,678 3 ,164,158 REVENUES OVER (UNDER) EXPENDITURES $ (4,296,425~ (1,082,776) $ 3,213,649 FUND BALANCES: Be ginning of year 9,036,314 End of year $ 7,953 ,538 85 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Development Services Special Revenue Fund For the year ended June 30,2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Uses of money and property $ 61,973 $ 60,833 $ (U40) Intergovernmental 51,782 5t782 Charges for current services 200 ,000 46,240 (153,760) Other revenues 125,501 125,501 Total revenues 26t973 284,356 22,383 EXPENDITURES: Community development 732,735 50,095 682,640 Capital improvement / special proje cts 200,000 83,317 116,683 Total expenditures 932,735 133A12 799,323 REVENUES OVER (UNDER) EXPENDITURES $ (670,762) 150,944 821 ,706 FUND BALANCES: Begirming of year 1)06,992 End of year $ 1,257,936 86 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Grants Special Revenue Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Fines and forfeitures $ 80,000 $ 80,000 $ Uses of money and property 15,760 24,931 9,171 Intergovernmental 1,029,396 540,149 (489,247) Charges for current services 167,000 164,867 (2,133) Other revenues 64,000 27,954 (36,046) Total revenues 1,356,156 837,901 (518,255) EXPENDITURES: General goverrunent 7,158 7,452 (294) Public safety 379,453 369,823 9,630 Culture and recreation 274,586 339,772 (65,186) Capital improvement/ special projects 649,332 170,846 478,486 Total expenditures 1,310,529 887,893 422,636 REVENUES OVER (UNDER) EXPENDITURES 45,627 (49,992) (95,619) OTHER FINANCING SOURCES (USES): Opera ting transfers in 174,140 174,140 Operating transfers out (71,000) (71,000) Total other financing sources (uses) 103,140 103,140 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ 148,767 53,148 $ (95,619) FUND BALANCES: Beginning of year 337,310 End of year $ 390,458 87 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Parkland Dedication Special Revenue Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Uses of money and property $ 56,941 $ 57,473 $ 532 Intergovernmental 12,000 10,000 (2,000) Charges for current services 11 ,000 18,105 7,105 Other revenues 25,000 29,831 4 ,831 Total revenues 104,941 115,409 10,468 EXPENDITURES: Capital improvement/ special projects 519,438 356,498 162,940 Total expenditures 519,438 356,498 162,940 REVENUES OVER (UNDER) EXPENDITURES (414,497) (241,089) 173,408 OTHER FINANCING SOURCES (USES): Operating transfers in 100,000 100,000 Operating transfers out (278,269) (278 ,269) Total other financing sources (uses) (178,269) (178 ,269) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ (592,766) (419,358) S 173,408 FUND BALANCES: Beginning of year 1,141,928 End of year $ 722 ,570 88 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Emergency Medical Services Special Revenue Fund For the year ended June 30,2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Taxes and special assessments $ 1,582,153 $ 1,584,638 $ 2,485 Charges for current services 1,149,950 1,169,600 19,650 Total revenues 2,732,103 2,754,238 22,135 EXPENDITURES: Public safety 2,843,595 2,848,711 (5,116) Total expenditures 2,843,595 2,848,711 (5,116) REVENUES OVER (UNDER) EXPENDITURES (111,492) (94,473) 17,019 . OTHER FINANCING SOURCES (USES): Operating transfers in 347,220 347,220 Operating transfers out (233,298) (233,298) Total other financing sources (uses) 113,922 113,922 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ 2,430 19,449 $ 17,019 FUND BALANCES: Beginning of year 9,755 End of year $ 29,204 89 06 DEBT SERVICE FUNDS The Debt Service Funds are used for the accumulation of resources for, and the payment of, general long-term principal and interest. Funds included are: East Francisco Boulevard Assessments District Fund -Established to accumulate funds for the payment of principal and interest. The related bonds were defeased in 1995. Peacock Gap Assessment District Fund -Established to accumulate funds for the payment of principal and interest for the 1993 Bonds which matures in 2005. The proceeds were used to refund the 1984 Bonds, which provided for the construction of public improvements in the project area. Financing is to be provided by property tax increments generated within the specific geographic region described by the bond assessment district. 1915 Act Bonds Fund -Established to account for the debt service managed by the County of Marin. The debt service relates to Lucas Valley road improvements. Mariposa Assessment District Fund -Established to accumulate funds for the payment of principal and interest for the 1993 Bond, which matures in 2008. The proceeds were used to finance the grading and paving of Mariposa Road. 1997 Reassessment Bonds Fund -Established to account for the refunding of the 1984 Kerner Boulevard Bond, the 1986 Sun Valley Bond, and the 1991 Civic Center/Northgate Bond. 1997 Financing Authority Revenue Bonds Fund -Established to accumulate funds for the payment of principal and interest for the 1997 Revenue Bonds which matures in 2011. The proceeds were used to purchase the previously issued special assessment bonds. Financing is to be provided by property tax increments generated within the specific geographic region described by the bond assessment district. 1992 Agency Refunding Bonds Fund -Established to accumulate funds for the payment of principal and interest for the 1992 Agency Tax Allocation Refunding Bonds that matures in 2017. The proceeds of the bonds were used to refund the 1985 Bond and to fund certain public capital improvements. 1995 Agency Bonds Fund -Established to accumulate funds for the payment of principal and interest for the 1995 Agency Tax Allocation Bonds that matures in 2021. 1999 Agency Bonds Fund -Established to accumulate funds for the payment of principal and interest for the 1999 Agency Tax Allocation Bonds that matures in 2023. 91 City of San Rafael Combining Balance Sheet Debt Service Funds June 30, 2000 ASSET S Cash and investments Cash and Investments with fiscal agent Taxes receivable Total assets LIABILITIES AND FUND BALANCES Liabilities: Acco\Jnts payable Due to other funds Total liabilities Fund Balances: Reserved for bond redemption Total fund balances Total liabilities and fund balances East Francisco Boulevard Assessments District $ 13,701 $ 13,701 $ 13,701 13,701 $ 13,701 92 Peacock Gap 1915 Mariposa Assessment Act Assessment District Bonds District $ 388,222 $ $ 35,874 67,387 317 39 $ 388,539 $ 67,387 $ 35,913 $ 747 $ $ 155 747 155 387,792 67,387 35,758 387,792 67,387 35,758 $ 388,539 $ 67,387 $ 35,913 1997 Reassessment Bonds $ 2,397 $ 2,397 $ 2,397 2,397 $ 2,397 1997 Financing Authority Revenue Bonds $ $ $ $ 529,852 389,520 1,003 920,375 2,443 2,443 917,932 917,932 920,375 $ $ $ $ 1992 Agency Refunding Bonds 2 2 2 2 2 93 $ $ $ $ 1995 Agency Bonds 631,469 631,469 1,530 1,530 629,939 629,939 631,469 $ $ $ $ 1999 Agency Bonds $ Totals 967,649 1,090,775 1,359 $ 2,059,783 $ 3,345 1,530 4,875 2,054,908 2,054,908 $ 2,059,783 Ci ty of San Rafael Combining Statement of Revenues, Expenditures and Changes in Fund Balances Debt Service Funds For the year ended June 30,2000 East Francisco Peacock Boulevard Gap Assessments Assessment District District REVENUES: Taxes and special assessment $ 5) 238,212 Fines and forfeitures 20,479 Uses of money and property Total revenues 258,691 EXPENDITURES: Principal retirement 250,000 Intere st and fiscal charges 79,858 Total expenditures 329,858 REVENUES OVER (UNDER) EXPENDITURES (71,167) OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out (2,458) Total other financing sources (uses) (2,458) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (73,625) FUND BALANCES: Beginning of year 13,701 461,417 End of year $ 13,701 $ 387,792 94 1915 Act Bonds $ 67,387 $ 67,387 Mariposa Assessment $ $ District 25,970 1,631 27,601 15,000 11,318 26,318 1,283 (146) (146) 1,137 34,621 35,758 1997 Reassessment Bonds $ 2,397 1997 Financing Authority Revenue Bonds $ 668,447 36,176 704,623 410,000 262,009 672,009 32,614 (4,712) (4,712) 27,902 890,030 $ 1992 Agency Refunding Bonds 1,422,345 59 1,422,404 450,000 972,406 1,422,406 (2) 1,403 1,403 1,401 (1,399) $ 1995 Agency Bonds 627,850 27 627,877 190,000 437,877 627,877 629,939 $ 2,397 $ 917,932 $ 2 $ 629,939 95 $ $ 1999 Agency Bonds 1,497,200 1,497,200 560,000 937,200 1,497,200 $ Totals 4,480,024 20,479 37,893 4,538,396 1,875,000 2,700,668 4,575,668 (37,272) 1,403 (7,316) (5,913) (43,185) 2,098,093 $ 2,054,908 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Peacock Gap Assessment District Debt Service Fund For the year ended June 30,2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Taxes and special assessment $ 222,615 $ 238,212 $ 15,597 Fines and forfeitures 20,479 20,479 Uses of money and property 20 ,506 (20,506) Total revenues 243,121 258,691 15 ,570 EXPENDITURES: Principal retirement 250,000 250,000 Interes t and fiscal charges 77,967 79,858 (1,891) Total expenditures 327,967 329,858 (1 ,891) REVENUES OVER (UNDER) EXPENDITURES (84,846) (71,167) 13,679 OTHER FINANCING (USES): Operating transfers out (2,458) (2,458) Total other financing (uses) (2,458) (2,458) REVENUES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ (87,304) (73 ,625) $ 13 ,679 FUND BALANCES: Beginning of year 461,417 End of year $ 387,792 96 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Mariposa Assessment District Debt Service Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Taxes and special assessment $ 26,586 $ 25,970 $ (616) Uses of money and property 1,681 1,631 (50) Total revenues 28,267 27,601 (666) EXPENDITURES: Principal retirement 15,000 15,000 Interest and fiscal charges 11,260 11,318 (58) Total expenditures 26,260 26,318 (58) REVENUES OVER (UNDER) EXPENDITURES 2,007 1,283 (724) OTHER FINANCING (USES): Operating transfers out (146) (146) Total other financing (uses) (146) (146) REVENUES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ 1,861 1,137 $ ~724~ FUND BALANCES: Beginning of year 34,621 End of year $ 35,758 97 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual 1997 Financing Authority Revenue Bonds Debt Service Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorab le) REVENUES: Taxes and special assessment $ 689,210 $ 668,447 $ (20,763) Uses of money and property 11,014 36,176 25,162 To tal revenues 700,224 704 ,623 4,399 EXPENDITURES: Principal retirement 380,000 410,000 (30,000) Interest and fiscal charges 287,660 262,009 25,651 Total expenditures 667,660 672,009 (4,349) REVENUES OVER (UNDER) EXPENDITURES 32,564 32,614 50 OTHER FINANCING (USES): Operating transfers out (4,712) (4,712) Total other financing (uses) (4,712) (4,712) REVENUES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ 27,852 27,902 $ 50 FUND BALANCES: Beginning of year 890,030 End of year $ 917,932 98 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual 1992 Agency Refunding Bonds Debt Service Fund For the year ended June 30,2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Taxes and s p ecial assessment $ 1,422,406 $ 1,422,345 $ (61) Uses of money and prope rty 13,500 59 (13,441 ) Total revenues 1,435,906 1,422,404 (13,502) EXPENDITURES: Principal retirement 450,000 450,000 Interest and fi s ca l charges 976,906 972,406 4 ,500 Total expenditures 1,426,906 1,422,406 4,500 REVENUES OVER (UNDER) EXPENDITURES 9,000 (2) (9,002) OTHER FINANCING SOURCES: Operating transfers in 1,403 1,403 Total other financing sources 1,403 1,403 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES $ 9,000 1,401 $ (7,599) FUND BALANCES: Beginning of year (1,399) End of year $ 2 99 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and ACtual 1995 Agency Bonds Debt Service Fund For the year ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Taxes and special assessment $ 627,878 $ 627,850 $ (28) Uses of money and property 5,000 27 (4,973) Total revenues 632,878 627,877 (5,001) EXPENDITURES: Principal retirement 190,000 190,000 Interest and fiscal charge s 442,878 437,8 77 5,001 Total expenditures 632,878 627,877 5,001 REVENUES OVER (UNDER) EXPENDITURES $ $ FUND BALANCES: Beginning of y ear 629,939 End of year $ 629 ,939 100 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual 1999 Agency Bonds Debt Service Fund For the year ended June 30,2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Taxes and special assessment $ 1,521,216 $ 1,497,200 · $ (24,016) Total revenues 1,521 ,216 1,497,200 (24,016) EXPENDITURES: Principal retirement 560,000 (560,000) Inter est and fiscal charges 1,521,216 937,200 584,016 Total expenditures 1,521,216 1,497,200 24 ,016 REVENUES OVER (UNDER) EXPENDITURES $ $ FUND BALANCES: Beginning of year End of year $ 101 (;01 CAPITAL PROJECTS FUNDS Capital Projects Funds were established for all resources used for the acquisition and improvement of capital facilities of the City. Funds included are: Open Space Fund -Established for the acquisition of open space. Capital Improvement Fund -Established for the costs associated with major capital improvement projects not tied to specific funds elsewhere. Improvements could include medians, parkways, sidewalks, and other public assets. Bedroom Tax Fund -Established to collect funds from multiple-unit housing used to pay for maintaining and developing parks within local neighborhoods. Assessment Districts Fund -Established to account for ongoing construction and improvement needs within the following assessment districts: Peacock Gap, Kerner Boulevard, Sun Valley/Lucas Valley Open Space, East San Rafael Drainage Assessment Districts 1 and 2, East Francisco Boulevard, and Bahia de Rafael. Park Capital Projects Fund -Established to account for capital improvements for all City owned parks, whether paid for by City funds, grants, donations, or partnerships with the community. 1985 Capital Project and Administration Fund -Established to account for all financial resources related to project planning, support services, and economic development efforts for the Redevelopment Agency except those required to be accounted for in the Low and Moderate Income Housing Fund by law. Low and Moderate Income Housing Fund -Established to account for the 20 % set-aside required by the State for low and moderate income housing projects of the Redevelopment Agency . 1992 Bonds Capital Project Fund -Established to account for additional major capital projects of the Redevelopment Agency's 1992 refunding project bond. 1995 Bonds Capital Project Fund -Established to account for major capital projects of the Redevelopment Agency's 1995 project bond, such as the Lindero Street Undergrounding and Corporation Yard relocation. 1999 Bonds Capital Project Fund -Established to account for new capital projects of the Redevelopment Agency's 1999 project bond, such as capital needs at the local schools and colleges, utility undergrounding along West Francisco and renovation of the Pickleweed Community Center Fields. 103 City of San Rafael Combining Balance Sheet Capital Projects Funds June ,30, 2000 ASSETS Cash and investments Cash and investments with fiscal agent Accounts receivable Taxes receivable Interest receivable Loans receivable Due from other funds Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Developer Bonds Payable Due to other funds Deferred revenue Total liabilities Fund Balances: Reserved: Encumbrances Loans receivable Improvement projects Information system proJects Arbitrage payments Housing School payments Corporation yard Assessment districts/open space Total fund balances Total liabilities and fund balances Open Space $ 552,391 $ 552,391 $ 552,391 552,391 $ 552,391 104 Capital Bedroom Assessment Improvement Tax Districts $ 3,158,393 $ 74,764 $ 280,574 1,925 278,802 25,384 $ 3,439,120 $ 100,148 $ 280,574 $ 127,090 $ $ 6,020 127,090 6,020 68,879 192,708 94,128 824,193 2,226,250 280,574 3,312,030 94,128 280,574 $ 3,439,120 $ 100,148 $ 280,574 Low and Park 1985 Capital Moderate 1992 Bonds 1995 Bonds 1999 Bonds Capital Project and Income Capital Capital Capital Projects Administration Housin_g_ Project Project Project Totals $ 71,157 $ 90,214 $ 1,984,614 $ 355,898 $ 2,586,745 $ $ 9,154,750 18,310,185 18,310,185 55,000 116,717 173,642 933,363 933,363 87,402 87,402 325,536 325,536 1,530 305,716 $ 126,157 $ 91,744 $ 3,330,915 $ 472,615 $ 2,586,745 $ 18,310,185 $ 29,290,594 $ $ 51,896 $ 37,709 $ 118,218 $ 243,819 $ 79,534 $ 658,266 25,000 25,000 80,384 278,802 359,186 35,000 41,020 115,384 76,896 37,709 118,218 243 ,819 358,336 1,083,472 68,879 325,536 325,536 10,773 14,848 354,397 12,075,427 12,742,281 824,193 77,150 77,150 2,967,670 2,967,670 3,900,068 3,900,068 2,342,926 1,899,204 6,468,380 832,965 10,773 14,848 3,293,206 354,397 2,342,926 17,951,849 28,207,122 $ 126,157 $ 91,744 $ 3,330,915 $ 472,615 $ 2,586,745 $ 18,310,185 $ 29,290,594 105 City of San Rafael Co~bining Statement of Revenues, Expenditures and Changes in Fund Balances Capital Projects Funds For the year ended June 30, 2000 Capital Bedroom Open Space Improvement Tax REVENUES ; Taxes and special assessments $ $ $ 29,650 Uses of money and property 26,535 57,131 Intergovernmental 29,207 Charges for current services Other revenues 2,226,365 Total revenues 26,535 2,312,703 29,650 EXPENDITURES; Community development!redevelopment Capital improvement! special projects 202 ,268 Total expenditures 202,268 REVENUES OVER (UNDER) EXPENDITURES 26,535 2,110,435 29,650 OTHER FINANCING SOURCES (USES): Operating trans fers in 1,201,596 Operating transfers out (100 ,000) Total other financing sources (uses) 1,201,596 (100,000) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 26,535 3,312,031 (70,350) FUND BALANCES: Beginning of year 525,856 1,293,251 164,478 Residual equity transfers out (1,293,252) End of year $ 552,391 $ 3,312,030 $ 94,128 106 Assessment Districts $ 11,984 11,984 (11,984) (11,984) 292,558 $ 280,574 Park Capital Projects $ 5,312 5,590 10,902 129 129 10,773 10,773 $ 10,773 1985 Capital Project and Administration $ $ 310 113,731 114,041 983 ,695 983 ,0l):; (869,11:;-1 ) 907,'132 (1 AO', 90h ,:;24 311 ,H7'5 (22,027) 14,8-18 $ Low and Moderate Income Housing 933,363 206,139 95,862 1,235,364 269,120 363,600 632,720 602,644 602,644 2,690,562 $ 3,293,206 $ $ 1992 Bonds 1995 Bonds Capital Capital Project Project $ 47,618 78,379 1,627,853 2,226,855 1,706,232 2,274,473 2,398,688 3,093,735 2,398,688 3,093,735 (692,456) (819,262) (692,456) (819,262) 1,046,853 3,162,188 354,397 $ 2,342,926 107 1999 Bonds Capital Project $ 969,317 500 969,817 4,724,139 4,724,139 (3 ,754,322) (907,932) (907,932) (4,662,254) 22,614,103 $ 17,951,849 $ Totals 963,013 1,312,052 107,586 310 6,296,756 8,679,717 1,252,815 10,794,543 12,047,358 (3,367,641) 2,109,528 (1,009,335) 1,100,193 (2,2 67,448) 31,767,822 (1,293,252) $ 28,207,122 SOl INTERNAL SERVICE FUNDS Internal Service Funds account for the financing of goods or services provided by a department for other departments on a cost reimbursement basis. Funds included are: Building Maintenance Fund -Established to account for construction projects and cyclical large dollar maintenance tasks (i.e., roof, painting) completed on City owned buildings. Liability Insurance Fund -Established to maintain sufficient reserves for outstanding claims. All costs associated with liability premiums are paid from this fund. Workers' Compensation Fund -Established to maintain sufficient reserves for injury claims. All costs associated with workers' compensation, including safety training, wellness programs, claim expenses, and insurance premiums are paid from this fund. Dental Insurance Fund -Established to maintain sufficient reserves for dental claims. All costs associated with dental claims and administration are paid from this fund. Radio Replacement Fund -Established to maintain sufficient reserves for radio replacement and pays for operating and debt service to MERA. 109 City of San Rafael Combining Balance Sheet Internal Service Funds June 30, 2000 ASSETS Cash and investments Total assets LIABILITIES AND FUND EQUITY Liabilities: Accounts payable Insurance claims payable Total liabilities Fund Equity: Retained earnings: Unreserved Total fund equity Total liabilities and equity Building Maintenance $ 430,301 $ $ 430,301 $ $ $ 430,301 430,301 $ 430,301 $ 110 Liability Workers' Dental Insurance Compensation Insurance 1,107,120 $ 2,571,808 S 27,543 1,107,120 $ 2,571,808 $ 27,543 6,794 $ 1,282 $ 286,349 2,112,114 293,143 2,113,396 813,977 45 8,412 27,543 813,977 458 ,412 27,543 1,107,120 $ 2,571,808 $ 27,543 $ $ $ $ Radio Replacement 1,523,656 1,523,656 1,523,656 1,523,656 1,523,656 $ $ $ $ Totals 5,660,428 5,660,428 8,076 2,398,463 2,406,539 3,253,889 3,253,889 5,660,428 111 City of San Rafael Combining Statement of Revenues, Expenses and Changes in Retained Earnings Internal Service Funds For the year ended June 30, 2000 Building Liability Workers' Maintenance Insurance Com pens a tion OPERA TING REVENUES: Charges for current services $ 58,526 $ 807,252 $ 1,962,001 Refunds 69,774 3,048 Total operating revenues 58,526 877,026 1,965,049 OPERATING EXPENSES: Insurance premiums and claims 194,702 650,252 1,575,060 Total operating expenses 194,702 650,252 1,575,060 OPERATING INCOME (136,176) 226,774 389,989 NON-OPERATING REVENUES: Operating transfers in 487,269 Investment income 18,416 48,957 70,665 Total non-operating revenues 505,685 48,957 70,665 NET INCOME (LOSS) 369,509 275,731 460,654 RET AINED EARNINGS: Beginning of year 60,792 538,246 (2,242) Residual equity transfers in End of year $ 430,301 $ 813,977 $ 458,412 112 Dental Insurance $ 333,234 191 333,425 330,311 330,311 3,114 3,114 24,429 S 27,543 Radio Replacement $ 237,438 237,438 57,667 57,667 179,771 50,633 50,633 230,404 1,293,252 $ 1,523,656 $ $ Totals 3,398,451 73,013 3,471,464 2,807,992 2,807,992 663,472 487,269 188,671 675,940 1,339,412 621,225 1,293,252 3,253,889 113 City of San Rafael Combining Statement of Cash Flows Internal Service Funds For the year ended June 30,2000 CASH FLOWS FROM OPERATING ACTIVITIES: Operating income (loss) Change in assets and liabilities: Accounts payable Claims payable Net cash provided (used) by operating activities CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES: Operating transfers in Residential equity tansfers from other funds Net cash provided by non-capital financing activities CASH FLOWS FROM INVESTING ACTIVITIES: Interest and dividends on investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of year End of year Building Maintenance $ (136,176) (136,176) 487,269 487,269 18,416 18,416 369,509 60,792 $ 430,301 114 Liability Workers' Dental Insurance Compensation Insurance $ 226,774 $ 389,989 $ 3,114 (12,207) 241 (60) (312,849) 553,187 (98,282) 943,417 3,054 48,957 70,665 48,957 70,665 (49,325) 1,014,082 3,054 1,156,445 1,557,726 24,489 $ 1,107,120 $ 2,571,808 $ 27,543 Radio Replacement $ 179,771 $ 179,771 1,293,252 1,293,252 50,633 50,633 1,523,656 Totals 663,472 (12,026) 240,338 891,784 487,269 1,293,252 1,780,521 188,671 188,671 2,860,976 2,799,452 $ 1,523,656 $ 5,660,428 115 911 FIDUCIARY FUNDS Trust and Agency funds account for assets held by the City in a trustee capacity or as an agent for individual, private organizations, and other governmental units. Funds included are: Business Improvement Fund -Established to account for activities held in Downtown San Rafael, such as the Farmers Market. Library Fiduciary Fund -Established to account for various memorial funds including the Davidson Bequest, which the City Council allocates annual amounts to purchase additional library books. Recreation Fiduciary Fund -Established to account for the Recreation Memorial Fund. 117 City of San Rafael Combining Balance Sheet Expendable Trust Funds June 30,2000 ASSETS Cash and investments Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Total liabilities Fund Balances: Reserved: Petty cash Designated for: Library IEndowments Park projects Total fund balances Total Iiabilities and fund balances Expendable Trust Funds Business Library ImE,rovement Fiduciary $ 8,910 $ 406,916 $ $ 8,910 $ 406,916 $ $ 44 $ $ 44 3,000 406,916 5,866 8,866 406,916 $ 8 ,910 $ 406,916 $ 118 Recreation Fiduciary Totals 35,038 $ 450,864 35,038 $ 450,864 72 $ 116 72 116 3,000 406,916 34,966 40,832 34,966 450,748 35,038 $ 450,864 City of San Rafael Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Expendable Trust Funds For the year ended June 30, 2000 Expen dable Trust Funds Business Library Recreation Improvement Fiduciary Fiduciary REVENUES: Uses of money and property $ 618 $ 26,504 $ 1,922 Intergovernmental 35,000 Othe r revenues 15,757 1,000 5,360 Total revenues 51,375 27,504 7,282 EXPENDITURES: General government 47,764 Culture and recreation 32,074 1,020 Total expenditures 47,764 32,074 1,020 REVENUES OVER (UNDER) EXPENDITURES 3,611 (4,570) 6,262 FUND BALANCES: Beginning of year 5,255 411,486 28,704 End of year $ 8,866 $ 406,916 $ 34,966 119 Totals $ 29,044 35,000 22,117 86,161 47,764 33,094 80,85 8 5,303 445,445 $ 450,748 City of San Rafael Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual Business Improvement Expendable Trust Fund For the year ended June 30,2000 Variance Favorable Budget Actual (Unfavorable) REVENUES: Uses of money and property $ $ 618 $ 618 Intergovernmental 35,000 35,000 Other revenue 17,000 15,757 (1,243) Total revenues 52,000 51 ,375 (625) EXPENDITURES: General government 52,000 47,764 4,236 Total expenditures 52,000 47,764 4,236 REVENUES OVER (UNDER) EXPENDITURES $ 3,611 $ 3,611 FUND BALANCES: Beginning of year 5,255 End of year $ 8,866 120 ~ity of San Rafael Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual Library Fiduciary Expendable Trust Fund For the year ended June 30,2000 Varian ce Favorable Bud£et Actual (Unfavorable) REVENUES: Use of money and property $ 21,827 $ 26,504 $ 4,677 Other revenue 1,000 1,000 Total revenues 21,827 27,504 5,677 EXPENDITURES: Culture and recre ation 30,000 32,074 (2,074) Total expenditures 30,000 32,074 (2,074) REVENUES OVER (UNDER) EXPENDITURES $ {8 ,1732 (4,570) $ 3,603 FUND BALANCES: Beginning of year 411A86 End of y e ar $ 406,9 16 121 >fue L q :J.ja L ALLeuOjJua:J.uj a6ed 5jq1 UOl:}.JCJS • L eJ.l:}.s.l:}.e:}.s FISCAL YEAR ENDED GENERAL J.ILt:/..E....3 GOYERNMENT 1991 $ 4,021,682 1992 $ 4,271,153 1993 $ 4,604,503 1994 $ 5,185,675 1995 $ 5,074,185 1996 $ 6,905,043 1997 $ 6,291,284 1998 $ 4,514,221 1999 $ 6,084,501 2000 $ 5,678,095 CITY OF SAN RAFAEL GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) LAST TEN FISCAL YEARS PUBLIC SAUIY $ 13,753,388 $ 14,073,750 $ 14,268,361 $ 13,925,631 $ 15,648,130 $ 16,365,089 $ 17,417,258 $ 19,595,147 $ 20,938,064 $ 23,756,604 PUBLIC COMMUNITY CAPITAL WORKS DEVELOPMENT CULTURE & OUTLAY & DEBT AND PARKS & REDEYELOP RECREATION pROJECTS Sf.RYI.C..E $ 5,709,862 # $2,625,727 $ 4,634,882 $ 4,438,766 $ 5,495,382 # $2,567,749 $ 2,782,335 $ 3,996,296 $ 5,386,198 # $2,597,082 $ 5,113,752 $ 5,561,241 $ 6,907,480 # $1,242,761 $ 1,257,281 $ 5,384,283 $ 5,775,033 # $3,084,633 $ 3,382,997 $ 4,219,647 $ 10,781,451 $ 2 ,054,557 $4,427,669 $ 2,294,518 $ 3,837,491 $ $ $ $ 6,292,167 $ 927,646 $4,556,110 $14,475,690 6,977,167 $ 3,048,015 $4,727,074 $18,128,414 6,962,957 $ 3,488,279 $5,439,046 $ 6,981,913 7,807,760 $ 2,914,886 $6,184,412 $19,965,738 General Governmental Expenditures by Function III Capital Outlay 28.2% Fiscal Year Ended June 30, 2000 • Debt Service 6.5% .General Government 8.0% $ 9,262,024 $ 2,710,490 $ 3,197,003 $ 4,575,668 • Public Safety 33.6% • Cultural and Rea-eaUon 8.7% C Public Works and Parks 10.8% C Comrnunlty Development 4.1% c..LAl.MS $236,913 $245,668 $ $ $ $ $ $ $ $ (1) Includes General, Special Revenue, Debt Service, and Capital Projects Funds ~ City of San Rafael audited Financial Statements, including Redevelopment Agency and Financing Authority # -included in "Other" category for 1994-95 and prior fiscal years. 122 ont.E.R IllIAL $2,291,504 $ 37,712,726 $2,618,040 $ 36,050,373 $2,592,152 $ 40,123,289 $3,580,755 $ 37,484,066 $3,103,472 $ 40,288,097 $ 175,971 $ 46,841,789 $ $ 59,222,179 $ $ 59,700,528 $ $ 53,091,763 $ $ 70,883,163 FISCAL YEAR ENDED JUNE 30 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 FISCAL CITY OF SAN RAFAEL PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS BASIC SCHOOL CITY TAX BOND BOND RATE RATE RATE 1.0000% N/A 0 .0040% 1.0000% N/A 0 .0020% 1.0000% N/A 0.0010% 1.0000% N/A N/A 1.0000% N/A N/A 1.0000% N/A N/A 1.0000% N/A N/A 1.0000% N/A N/A 1.0000% N/A N/A 1.0000% 0.0170% N/A SPECIAL TAXES AND CHARGES MARIN SAN SAN MUNICIPAL RAFAEL SAN SAN RAFAEL RAFAEL WATER SANITARY RAFAEL ELEMENTARY HIGH MOSQUITO SAN RAFAEL DISTRICT YEARENDED D~TR~T PARAMED~ SCHOOL SCHOOL DISTRICT RUNOFF FIREFLOW JUNE 30 CHARGE TAX TAX TAX CHARGE CHARGE CHARGE 1991 174 25 60 60 N/A N/A N/A 1992 176 28 60 60 N/A N/A N/A 1993 176 28 60 60 10 N/A N/A 1994 191 28 60 60 N/A N/A N/A 1995 199 34 N/A 60 N/A N/A N/A 1996 206 37 90 60 N/A 15 N/A 1997 211 40 90 60 N/A 20 N/A 1998 245 40 90 60 N/A 22 75 1999 245 40 90 60 10 24 75 2000 258 40 108 74 6 26 75 TOTAL TAX RATE 1.0040% 1.0020% 1.0010% 1.0000% 1.0000% 1.0000% 1.0000% 1.0000% 1.0000% 1.0170% TOTAL SPECIAL TAXES AND CHARGES 319 324 334 339 293 408 421 532 544 587 Note: Data shown represents average residential rates in Central San Rafael. The residents that live in North San Rafael are served by a different sanitation district and elementary school district . Th is schedule excludes Mello Roos and Benefit Assessment Districts, whose assessments are limited to a small porlion of the City's parcels. NIA -Not applicable ~ Marin County Assessor and Auditor-Controller 127 CITY OF SAN RAFAEL RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUATION AND NET GENERAL BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS RATIO OF NET NET GENERAL FISCAL GROSS LESS DEBT NET BONDED DEBT BONDED YEAR ENDE ESTIMATED ASSESSED BONDED SERVICE BONDED TO ASSESSED DEBT PER JUNE 30 POPULATION (A) VALUATION (B) DEBT (C) .ElJNI2S J2E.Eil.. VALUATION CAff[A 1990 48,400 $ 3,317,920,000 $ 15,133,000 $ (1,948,558) $ 13,184,442 0.397 272.41 1991 49,500 $ 3 ,666,956,000 $ 14,323,000 $ (2,821,226) $ 11,501,774 0.314 232.36 1992 50,400 $ 3,928,783,000 $ 21,170,000 $ (2,524,680) $ 18,645,320 0.475 369 .95 1993 51,000 $ 4,056,588,000 $ 19,720,000 $ (2,057,879) $ 17,662,121 0.435 346 .32 1994 51,700 $ 4,227,765,000 $ 18,660,000 $ (1,801,806) $ 16,858,194 0.399 326 .08 1995 51,600 $ 4,379,175 ,000 $ 17,740,000 $ (1 ,810,888) $ 15,929,112 0.364 308.70 1996 53,200 $ 4,465,232 ,000 $ 25,345,000 $ (1,282,239) $ 24,062,761 0.539 452.31 1997 53,427 $ 4,640,085,000 $ 24,790,000 $ (630,728) $ 24,159,272 0.521 452 .19 1998 54,010 $ 4,872,897,000 $ 24,210,000 $ (631,485) $ 23,578,515 0.484 436 .56 1999 54,402 S 5.093,632,000 $ 45,899,004 $ (631,471) $ 45,267,533 0.889 832 .09 2000 54,752 S 5.464,031 ,000 $ 45,899,004 $ (631,471) $ 45,267,533 0.828 826.77 G[Q55 BQnd5 B§cam;lIIallan; Total -Combined Balance Sheet $ 51,479,004 $ 2,059,783 Less: Assessment District Bonds $ (1,265,000) $ (507,937) Financing Authority Revenue Bonds $ (4,315,000) $ (920.375) Gross General Obligation Bonds $ 45,899,004 $ 631,471 ~: (A) = CA State Department of Finance (B) = "Total Property Subject to Taxation" from Schedule of "Assessed Valuation of Taxable Property" (e) = Includes General Obligation Bonds and Tax Allocation Bonds (Redevelopment Agency) which are supported by general property taxes and tax increment received by the Redevelopment Agency. 128 CITY OF SAN RAFAEL SALES TAX BY INDUSTRY GROUP FISCAL YEAR 1999-00 TOP FIFTEEN SALES TAX PRODUCERS -1999-00 HOME DEPOT R & G T OYOTA & VOLVO JOHN IRISH AUTO PLAZA R A B MOTORS SONNEN BMW FIRST NISSAN MARIN M ACYS SEARS ROEBUCK CIRCUIT CITY SON NEN VOLKWAGEN AUDI PORSCHE LEXUS OF MARIN FORD OF SAN RAFAEL GOLDEN STATE LUMBER COMPUTERS AMERICA JACKSONS HARDWARE Source: SALES TAX PRODUCERS BY INDUSTRY -1999-00 Fuel And Service Stations Restaurants and Hotels Food and Drugs 6% 4% Business and Industry 12% 16% 5% General Consumer Goods 23% 32% NOTE: -Top fifteen sales tax producers are listed alphabetically; chart by industry reflects point of sales activity for the sales quarters of July 1998 through June 1999 . State Board of Equalization 133 CITY OF SAN RAFAEL CONSTRUCTION ACTIVITY LAST TEN FISCAL YEARS NUMBER OF PERMITS ISSUED FISCAL YEAR ENDED COMMERCIAU NEW .ru.ttUa INDUSTRIAL RESIPENTIAL ALTERATIONS IQIAL 1991 2 199 1,013 1,214 1992 6 42 982 1,030 1993 3 83 1,030 1,116 1994 4 102 1,117 1,223 1995 6 41 1,109 1,156 1996 3 90 1,147 1,240 1997 9 50 1,139 1,198 1998 8 65 1,053 1,126 1999 10 79 1,133 1,222 2000 3 63 1,019 1,085 N/A -not available ~: San Rafael Building Department 134 TOTAL TOTAL PERMIT INCREASE IN BANK VALUATION LIVING UNITS PEPOSITS 41,335,138 263 1,844,647,000 31,467,041 42 1,777,511,000 29,559,332 84 1,772,758,000 42,077,753 139 1,666,609,000 34,386,454 74 1,717,388,000 64,269,981 264 1,804,771,000 53,172,130 124 1,863,602,000 67,125,883 151 2,049,398,000 77,892,405 128 N/A 63,402,582 241 N/A CITY OF SAN RAFAEL SCHEDULE OF INSURANCE IN FORCE JUNE 30, 2000 POLICY EXP. COMpANY .t:ruM.B..E.B. .DAli TYPE OF COYERAGE LIMITS OF COYERAGE Mactliat:.('t aad. Eal.licmea[ las.u.c.a.ace.' Kemper Insurance Companies 3XN-022-370-05 7/1/00 Boiler and Machinery Coverage including S 10.000.000 Covered Property Production Machmes and Public Ulility $ 100 .000 Exira Expense Equipmenl S 5.000 Deduclible -Engine $ 1.000 Deduc\ible -Other $ 1,000 Deduclible -Exira Exp . Commercial Union Insurance Co , CAH-822007 10/1/00 Hu ll and Machinery Insurance for Police Boat $ 250,000 Covered Property 5,000 Deductible ~Qmmt:.~l.al Ea21uuJlllas.u.caace.' The Travelers Insurance Co KT JCMB-122D827·A-98 7/1/00 Real and Personal Property, Business $ 2.500 .000 Company's portion Lexinglon Insurance Co. 8533918 711/00 Transit. Accounts Receivable. leaseholds $ 2.500 .000 Company's porlion $ 5,000 ,000 Each occurrence $ 25 ,000 Deductible Federal Insurance Co . 659·96-69 711100 Excess Property Coverage $ 295,000,000 excess of $ 5,000.000 k1!ar.Kt:.t:'s c'crnQeasatlCQ' United States Fidelity & Guaranty DRE-300·301B-4B01 7/1/01 Excess Worker's Compensation $ 10.000,000 Excess of $250,000 $ 250.000 Self-insured Retention S.Q,;u;~lal E~t:.Qllas.ucaact:.· General Star tndemnity Co. IYG-325268A 111101 Special Evenl liability Insurance -Primary 1,000.000 Aggregate limit $ 250.000 Each occurrence $ 50.000 Fire damage $ 2,000 Medical, per person Genesis tndemnity Insurance Co. ZXB300176B 111/01 Special Event liability Insurance -Excess $ 1.500,000 Aggregate limit $ 750,000 Each occurrence Liabilitv IO$ucance ' Great American Insurance Comp o GHB002604 1 -08 7/1100 Aircraft liability -Non-owned $ 10,000,000 Each occurrence California Joinl Powers Risk N'A 6130/00 Properly damage, bodily injury. personal injury. 9.500.000 Excess of $500.000 Managemenl Authority public official errors and omissions $ 500,000 Self-insured Retenllon EJJ.blic o.a~ial Ball'U: Weslern Surely Company 58H6739 11/12/00 Elecled City Clerk S 5.000 Western Surety Company 58476738 11112/00 Appointed Deputy Treasurer S 10.000 Kemper tnsurance Companies 3S30604500 1114/00 Administrative Services Direclor S 50.000 Western Surety Company 58416740 11/5/00 Elected City Attorney S 1,000 Harlford Fire Insurance Company 57-PEB·GG9385 8/24/01 Public Officials S 5.000 Harlford Fire Insurance Company 57-PEB-GG9377 8/24/01 Public Employee Dishonesty Bond $ 100,000 Source· City of San Rafael Human Resouces Division -Risk Manager 135 CITY OF SAN RAFAEL MISCELLANEOUS STATISTICAL DATA JUNE 30, 2000 Date of Incorporation February 18,1874 Form of Government Incorporated as a Charter City, effective July 1, 1913 Council/Manager City Council consists of a directly elected Mayor and four council members, all elected to four year terms. Number of City employees Election (1) Registered voters Number of votes cast last general election Percentage of re'gistered voters voting Population (2) Location 546 26,954 9,188 34.6 % 54,752 17 miles north of San Francisco in Marin County Elevation Ranges from sea level to 900 feet Area in square miles 22 square miles -consisting of 17 square miles of land and 5 of water and tidelands Police Number of stations Number of sub-stations Number of employees Sworn Civilian Ratio of sworn personnel per 1,000 population Public Works 1 2 78 34.5 1.4 % Miles of streets 165 Number of major intersections with traffic signals 86 Number of street lights 4,167 Recreation Parks Number of acres Recreation facilities 136 22 146.00 3 CITY OF SAN RAFAEL MISCELLANEOUS STATISTICAL DATA JUNE 30, 2000 Library S.ervices Number of volumes Hours of service per week Library facilities Housing (3) Single family -Detached Single family -Attached Multi family Mobile Homes Total Units Total Occupied Percent Vacant Education Elementary schools Middle schools High schools Parochial schools Colleges Churches (4) Financial institutes (5) Banks Savings & Loans Credit unions Ethnic breakdown (6) White Sources : Hispanic African-American Asian (1) Marin County Registrar of Voters , July 2000 (2) California Department of Finance Estimates 10,406 2,119 9,902 445 128,892 59 1 22,872 21,960 3.99 % 9 2 3 11 2 42 19 13 1 68.0 % 17.0 % 8.0 % 7.0 % (3) Planning Department, San Rafael (Population and Housing Estimates, Department of Finance, State of California) (4) Marin County Pacific Bell SMART Yellow Pages, May 2001 (5) The Findley Reports, June 30, 1997 (6) San Rafael Chamber of Commerce, 1999 Economic Profile 137 SALES TAX Description: Sales and use tax is imposed upon most retail transactions. The Marin County rate reflects only the basic tax as charged by the State. Of the total 7.25%, 1.00% is returned to San Rafael. The remainder is allocated to the State's General Fund (5 .00%) and the County for transportation, public safety and other programs (1 .25%). Background: Voter approved laws, restricting tax raising limits, began with Proposition 13 in 1978 and have occurred up through Proposition 218 in 1996. These revenue restrictions, coupled with State redistribution of property taxes, have forced cities to rely more and more on sales tax for municipal services. San Rafael continues to be the retail hub of Marin County, and as such has benefited from retail uses created by market forces and the Redevelopment Agency efforts over the past few years. Results: The early part of this decade represented a deep recession that lasted for several years. Beginning in 1994-95, the City began to see real increases in sales tax that reflected an economy on the rise. For the last two years, a combination of global expansion, international commerce, new local retail business and significant new and leased automobile sales have translated into significant increases in sales tax. $17.000 r $16 .000 $15.000 $14 .000 II) $13.000 c:: ~ ~ $12 .000 $11 .000 $10.000 $9 .000 $8.000 Sales tax grew 12% in 1999-2000 over the prior year level. Sales Tax - 6 Year Trend $16.203 94-95 95-96 96-97 97-98 98-99 99-00 Fiscal Year _ Actual Results -+-3% annual growth 138 PROPERTY TAX Description: Property tax is imposed on real property (land and permanent improvements) as well as tangible personal property (furniture, fixtures and equipment). The general levy tax rate is 1 % of assessed value, adjusted by an annual inflation factor not to exceed 2%. Property is assessed by the Marin County Assessor's office, except for certain public utility property which is assessed by the State Board of Equalization. Background: Growth in property tax revenues is realized from either increased valuation occurring when property is sold and subsequently reassessed or from the 2% annual increase allowed under Proposition 13. Since 1992-93, the State has redirected 26% of local San Rafael taxes into its own budget. Beginning in 1994-1995, the City adopted the "teeter" plan which allows the City to receive 100% of its property tax, regardless of when the taxes are paid. Results: The graph below takes on two elements. The first bar shows the actual and estimated 1 % levy revenues for the City. The additional bar shows the amount of money lost to the State via tax redistribution. The City receives approximately 12% of each dollar net of redistribution to the State. One-time payments to the City were received in 1999-2000. The State returned $121,000 of "shifted" dollars from the 1992-93 redistribution formulas. A Bill for Marin County only, provided $344,000 as excess contributions based upon State formulas. II) c: ~ ~ 94-95 95-96 Property Taxes -6 Year Trend 96-97 97-98 98-99 99-00 Fiscal Year III Total paid to City • Loss to State I 139 MOTOR VEHICLE IN LIEU FEES Description : A special license fee is imposed by the State on motor vehicles "in lieu" of property tax. The Motor Vehicle In Lieu Fees are paid by the registered owner of a vehicle. This fee is paid initially at the date of purchase on new or used vehicles. In second and subsequent years, it is remitted as part of the vehicle registration process . Background: A two percent rate is applied to vehicle value annually in order to compute the fee paid by the registered owner. The 2% rate applies to the original sales value in the year of purchase. By State Statute, the valuation declines each year by 10% of the remaining value, leveling off at a 15% valuation factor in year 11. Of the total fees collected by the State, approximately 17% are distributed to cities . The State approved a reduction of 25% in the personal property tax to voters for calendar year 1999. An additional 10% rate reduction occurred beginning January 1, 2000 .. The City continues to receive the same level of funding . The tax break is "backfilled" from State general fund revenues . This revenue remains unstable so long as State legislators have the ability to manipulate collection and distribution reductions during each year of the budget sessions . Results: The strong economy has continued for purchases of motor vehicles on both sales and leases. High end cars and SUV's continue to produce high volumes at local dealerships, which translates into more vehicle taxes to San Rafael. ... _.................... _._.j ... __ ........ I ........ I_._._--... ........ + ..... , ...... N't'·._ ......... H~.I_ •• OO4 •• H_ I I I ............ _ •••••• , ... . en c ~ ~ $3.000 ".. 94-95 Motor Vehicle In Lieu Fees - 6 Year Trend 95-96 96-97 97-98 98-99 Fiscal Year ~ ____ ." ___ ~._ •• , ............. Vt .. w~·~+-.~ .. '''''~_~. ____ ~ _____ , 140 99-00 BUSINESS LICENSE TAX Description: Business License Tax is imposed on all business for the privilege of conducting business within the City. Most retail, wholesale, professional and service industries pay this tax on a gross receipts basis. A small portion of businesses pay a tax rate based upon the number of employees. Apartments pay a tax based upon the number of rental units. Background: The tax rates are identified in Municipal Code Section 10.04, subject to indexing for inflation. The rates were last modified in 1991. Future rate restructuring would likely fall under Proposition 218 voter approval requirements. Estimated tax revenues are based upon a combination of inflation factors, business expansion and retention, turnover, desk and field audits. Results: This source of revenues is sensitive to economic cycles.. As such, it suffered during the recession of the early 1990's. In FY 1999-00, a continuation of the compliance and collection efforts, started in the prior year, garnered lowered delinquencies and resulted in a substantial increase in taxes for this period. en c: ~ ::E $0 94-95 Business License Tax -6 Year Trend 95-96 96-97 97-98 98-99 Fiscal Year 1 ... __ ..w~ •• _'~ •• '-""''''''_'''~.Y-''''''''''''''''II''''''''~'''~'~''''''''''''''''-''''''f''''''''''''''''''f.WO''''''''''''t ............... ' •• I.' ....... <::-I 141 99-00 HOTEL (OCCUPANCY) TAX Description: Hotel tax, also re.ferred to as occupancy tax, is imposed on occupants of hotels, inns , motels and other lodging facilities unless such occupancy is for a period of 30 or more days. The tax is applied to a customer's lodging bill. Taxes are remitted either monthly or quarterly for all approved lodging operators. Background: The current hotel tax rate is 10%. It was last modified in 1988. Factors that influence this revenue source include room rates, occupancy levels, the number of rooms available for lodging, business retention, new business development and tourism. Results: $2 .000 $1.800 $1 .600 $1 .400 $1 .200 (I) c ~ $1 .000 ~ $0.800 $0 .600 $0.400 $0 .200 $- The City currently has 9 hotels/motels. These range in scope from a bed and breakfast inn all the way up to corporate chain facilities. The two largest hotels generate 83% of the total tax received by the City. The acquisition of Holiday Inn by Wyndham Gardens in fiscal year 1995-96 was a plus for the City . A period of remodeling pulled down potential revenues in that year. However, in 1996-97, Wyndham had a full year of reportable operations and exceeded estimated tax figures. For 1998-99, remodeling of the old Bermuda Palms into the Days Inn has translated into improved tax from this location. In 1999-00 the Wyndham was acquired by the Four Points Hotel. Strong tourism and low room vacancies have occurred over the last four years and are expected to continue . Hotel (Occupancy) Tax - 6 Year Trend 94-95 95-96 96-97 97-98 98-99 99-00 Fiscal Year .... _.~_, ..... ,.~ .... _ .... -... 1I~1_. ___ .-'~ ____ ""' ____ _ --------, .......... .-........ .-~.~ 142 PROPERTY TRANSFER TAX Description: Property transfer, tax is imposed on any conveyance of real property when a change in "deed" is filed with the County of Marin. Background: The City's Real Property Transfer Tax regulations are laid out ,in Municipal Code Section 3.22. San Rafael's tax is imposed at the rate of two dollars for each thousand dollars or fractional part of one thousand dollars in sales value. This revenue source was last modified in 1990, resulting in an increase in rates from $1.10 to $2.00 per thousand dollars of value. This rate change is reflect in the chart below. Results: This resource, like many tax revenues, is tied to the overall economic vitality of the City . "C c: fa en ::::I 0 ..c: I- "C QI ... "C c: ::::I ::t: A boom in market activity resulted in a 45% increase in 1996-97 over 1995-96. Likewise, 1997-98 was another banner year, up 15% over 1996-97. 1998-99 was 4% less due to limited housing stock available on the market. In 1999-00, double digit increases in real estate values on pre-Proposition 13 properties that turned over and new commercial and office sites resulted in a 25 % growth in this category. ---------------................. '" Property Transfer Tax - 6 Year Trend 11.864 $12.000 $10.000 $8.000 $6.000 $4.000. $2.000 $0.000 !i«!l!;;;::: 94-95 95-96 96-97 97-98 98-99 99-00 Fiscal Year b. _ ........ t.'~·h1U .. <;n· •• _~" ••• _ •••• __ • _ ' ..... "' .... ~iU .... ~U'U'O .. _~I.-...u. .. n __ .... ._I ............... __ .... -.-~ ............ _ .. 143 FRANCHISE FEES Description: San Rafael imposes a fee on the distribution and sales of publ,ic utility services. City Charter Article XIV provides regulations concerning franchised agencies and businesses. Currently, the City charges PG&E a franchise fee of 1% for gas and 1/2% for electricity . The local cable provider, TCI, pays a 5% franchise fee on a quarterly basis to San Rafael. Background: In 1997, the City adopted a new franchisee fee for refuse services. The 10% rate is imposed on Marin Sanitary Service for refuse and recycling services provided in the franchisee's service area (all of the City except North San Rafael). For the other utilities, the current rates are applied to revenues generated within the City limits. Statewide utility deregulation is causing cities, including San Rafael, to see lower overall franchise fees from the major utility provider. Results: The graph below takes on two elements. The first bar shows the franchise fees on utility companies only (PG&E and TCI Cable). The second portion shows the new franchise fee for refuse that began in 1997-98. In 1999-00 Taxes on the refuse hauler increased due to service volume and additional customers, without a rate increase. Changes in the City's cable provider resulted in increased services, rates and fee collections. Franchise Fees - 6 Year Trend $16 .000 $14.000 $12 .000 'C r::: rei $10 .000 VI ::::l 0 ..r::: I-$8.000 'C QI ... 'C $6.000 r::: ::::l :J: $4.000 $2 .000 $- 94-95 95-96 96-97 97-98 98-99 99-00 Fiscal Year I_ Utility Companies II Refuse Company I 144 CITY OF SAN RAFAEL ALLOCATION OF $1.00 OF PROPERTY TAX REVENUE FISCAL YEARS 1999-2000 Property Tax Distribution 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 00/0 j4?-.Y,L;'.r.'J-<'.!.p'C1 _-•• ~ .-1 .... --~ .""',p; ;·n·-~t''-'·i'';'i;Rt..!b.:J.i.I rii¥J'' .... ,~~~ .• -.......... ,: •.. :r -+i,b.....:.u,,,:,,y( Central SR Sample Sites • Other Entities o City of San Rafael • Elementary Schools North SR GI Marin Community College o San Rafael High Schools • County General Other Entities include Mosquito Abetement District, Marin Open Space, Marin County Transit District, Bay Area AQMD and Sanitation Districts NOTES: -Elementary schools are San Rafael District in Central SR graph and Dixie District in North SR graph. Sanitation Districts are San Rafeal Sanitation for Central SR graph and Las Gallinas Valley for North SR graph source: 1998-99 sample properties from Marin County Assessor records 145