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2000-2001 Comprehensive Annual Financial ReportCity of San Rafael San Rafael, California General Purpose Financial Statements and Independent Auditors' Report For the year ended June 30, ,2001 C~L CapOllcci , Cropper & Larson. LLP Cel'tified PubliC Accountants City of San Rafael General Purpose Financial Statements For the year ended June 30, 2001 Table of Contents Page Independent Auditors' Report ................................................................................................... 1 General Purpose Financial Statements: Combined Balance Sheet -All Fund Types and Account Groups and Discretely Presented Component Unit ........................................................................... 4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances -All Governmental Fund Types and Expendable Trust Funds ................................................................................................... 6 Combined Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual-General Fund, Special Revenue Funds, Debt Service Funds with Budgets, and Expendable Trust Funds with Budgets ...... 8 Combined Statement of Revenues, Expenses and Changes in Retained Earnings -All Proprietary Fund Types and Discretely Presented Component Unit ........................................................................... 10 Combined Statement of Cash Flows -All Proprietary Fund Types and Discretely Presented Component Unit ........................................................................... 11 Notes to General Purpose Financial Statements .................................................................. 13 Required Supplementary Information: Marin County Employees' Retirement System -Schedule of Funding Progress ........... 61 Supplemental Information: General Fund: Description .......................................................................................................................... 65 Comparative Balance Sheets ............................................................................................. 66 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances ......................................................... , ................................ 67 Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and ActuaL ................ ; .................................. 68 City of San Rafael General Purpose Financial Statements For the year ended June 30, 2001 Table of Contents, Continued Supplemental Information, Continued: Special Revenue Funds: Page Description .......................................................................................................................... 69 Combining Balance Sheet ................................................................................................. 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................................................................................... 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and ActuaL ................................................... 80 Debt Service Funds: Description ............................................................................ ; ........... ; ................................. 89 Combining Balance Sheet ................................................................................................. 90 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..................................................................................... , .... 92 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual (With Budgets) ......................... 94 Capital Projects Funds: Description .......................................................................................................................... 97 Combining Balance Sheet ................................................................................................. 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................................................................. 100 Internal Service Funds: Description .......................................................................................................................... 103 Combining Balance Sheet ................................................................................................. 104 Combining Statement of Revenues, Expenses and Changes in Retained Earnings ............................................................................ 106 Combining Statement of Cash Flows .............................................................................. 108 Expendable Trust Funds: Description ............................................................. , ............................................................. 111 Combining Balance Sheet ................................................................................................. 112 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................................................................. 113 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual (With Budgets) ................. 114 ii ICGL Caporicci, Cropper & Larson , LLP Cet'lifted Public Accountants Offices located in: Bay Area Orange County Sacramento 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, 2001, 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 auditing standards generally accepted in the United States 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, 2001, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States. As discussed in Note 1 to the general purpose financial statements, the City changed in 2001 its method of accounting and financial reporting for non-exchange transactions to conform to Governmental Accounting Standards Board Statement No. 33. In accordance with Government Auditing Standards, we have also issued a report dated December 7, 2001 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. Toll Free Tel: (877) 862-2200 Bay Area 1111 Broadway, Suite 2300 Oakland, California 94607 Orange COWlty 3184-D Airway Avenue Costa Mesa, California 92626 Toll Free Fax: (866) 436-{)927 Sacramento 777 Campus Commons Rd., Suite 200 Sacramento, California 95825 To the Honorable Mayor and Members of the City Council of the City of San Rafael San Rafael, California Page Two 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's management. 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. lJ~'ee( J ~~ i L~~ (tp Oakland, California December 7, 2001 SlN3W3lVlS iVI:>NVNB 3S0cIlIOcI iV1I3N3~ City of San Rafael Combined Balance Sheet All Fund Types, Account Groups and Discretely Presented Component Unit June 30, 2001 (With comparative totals for June 30, 2000) Governmental Fund TITes Special Debt General Revenue Service ASSETS AND OTHER DEBITS Assets: Cash and investments (Note 2) $ 5,413,876 $ 18,843,701 $ 2,061,238 Receivables (Note 3) 5,723,556 955,656 Due from other funds (Note 5) 83,403 35,000 Due from other governments Prepaid expenses Other current assets General fixed assets (Note 6) Component unit fixed assets, net (Note 6) COP issuance costs, net Total assets 11,220,835 19,834,357 2,061,238 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 $ 11,220,835 $ 19,834,357 $ 2,061,238 LIABILITIES, FUND EQUITY, AND OTHER CREDITS Liabilities: Accounts payable $ 1,007,453 $ 1,398,499 $ Connection fees payable Developer deposits payable 46,899 1,500 Arbitrage payable Insurance claims payable (Note 17) Interest payable Due to other funds (Note 5) 1,011,138 Deferred revenue (Note 4) 157,330 Capital lease obligations (Note 7) Compensated absences (Note 7) Certificates of participation (Note 7) Notes payable (Note 7) Special assessment debt (Note 7) Bonds payable (Note 7) Total liabilities 1,054,352 2,568,467 Fund Equity and Other Credits: Investment in general fixed assets Contributed capital (Note 12) Retained earnings Fund balances (Note 10): Reserved 4,010,745 3,404,649 2,061,238 Unreserved: Designated 3,757,328 13,190,344 Undesignated 2,398,410 670,897 Total fund equity and other credits 10,166,483 17,265,890 2,061,238 Total liabilities, fund equity, and other credits $ 11,220,835 $ 19,834,357 $ 2,061,238 See accompanying notes to general purpose financial statements. 4 Capital Projects $ 26,560,313 2,179,395 952,666 29,692,374 $ 29,692,374 $ 734,154 25,000 338,867 59,931 40,000 1,197,952 28,494,422 28,494,422 $ 29,692,374 Totals Component Proprietary Fiduciary Primary Unit Totals Fund Type Fund Tl:J2 e Account Grou,Es Government San Rafael (Memorandum Onl:1:) Internal Expendable General General Long-(Memorandum Sanitation Service Trust Fixed Assets Term Debt Onlr) District 2001 2000 $ 7,412,748 $ 469,546 $ $ $ 60,761,422 $ 5,001,698 $ 65,763,120 $ 60,511,027 8,858,607 8,824 8,867,431 7,262,779 1,071,069 1,071,069 400,085 51 ,122 51,122 33,103 15,481 15,481 23,812 34,400 34,400 27,396 38,973,530 38,973,530 38,973,530 38,011,483 22,644,006 22,644,006 22,279 ,917 83,824 83,824 44,764 7,412,748 469,546 38,973,530 109,664,628 27,839,355 137,503,983 128,594,366 2,061,238 2,061,238 2,061,238 2,054,908 52,076,631 52,076,631 52,076,631 53,343,536 54,137,869 54,137,869 54,137,869 55,398,444 $ 7,412,748 $ 469,546 $ 38,973,530 $ 54,137,869 $ 163,802,497 $ 27,839,355 $ 191,641,852 $ 183,992,810 $ 75 ,839 $ 4,593 $ $ $ 3,220,538 $ 547,224 $ 3,767,762 $ 2,168,677 163,812 163,812 125,750 73,399 73,399 50,000 338,867 338,867 2,754,026 2,754,026 2,754,026 2,398,463 30,012 30,012 109,315 1,071,069 1,071,069 400,085 197,330 197,330 95,240 420,500 420,500 420,500 52,309 3,889,365 3,889,365 3,889,365 3,698,131 4,427,987 4,427,987 3,856,706 169,000 169,000 169,000 2,669,000 1,055,000 1,055,000 1,055,000 1,265,000 48,604,004 48,604,004 48,604,004 50,214,004 2,829,865 4,593 54,137,869 61,793,098 5,169,035 66,962,133 67,102,680 38,973,530 38,973,530 38,973,530 38,011,483 7,377,012 7,377,012 7,461,602 4,582,883 4,582,883 15,293,308 19,876,191 16,985,029 3,000 37,974,054 37,974,054 38,733,597 461,953 17,409,625 17,409,625 10,777,534 3,069,307 3,069,307 4,920,885 4,582,883 464,953 38,973,530 102,009,399 22,670,320 124,679,719 116,890,130 $ 7,412,748 $ 469,546 $ 38,973,530 $ 54,137,869 $ 163,802,497 $ 27 ,839 ,355 $ 191,64L852 $ 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, 2001 (With comparative totals for the year ended June 30, 2000) Governmental Fund Types General Special Fund Revenue REVENUES: Taxes and special assessments $ 32,270,051 $ 2,024,746 $ Licenses and permits 722,082 122,711 Fines and forfeitures 1,310,708 26,909 Uses of money and property 740,760 1,446,214 Intergovernmental 5,105,977 3,038,183 Charges for current services 908,654 10,985,260 Other revenues 90,043 Total revenues 41,148,275 17,644,023 EXPENDITURES: Current: General government 5,402,171 281,197 Public safety 19,889,700 4,548,000 Public works and parks 4,788,883 3,736,052 Community development/ redevelopment 1,816,471 169,041 Culture and recreation 1,496,042 4,875,490 Capital outlay 90,029 2,813,240 Capital improvement/special projects 378,772 3,749,525 Debt service: Principal retirement Interest and fiscal charges Total expenditures 33,862,068 20,172,545 REVENUES OVER (UNDER) EXPENDITURES 7,286,207 (2,528,522) OTHER FINANCING SOURCES (USES): Operating transfers in (Note 5) 1,413,998 4,185,780 Operating transfers out (Note 5) (5,745,732) (898,596) Total other financing sources (uses) (4,331,734) 3,287,184 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 2,954,473 758,662 FUND BALANCES: Beginning of year 7,212,010 16,507,228 End of year $ 10,166,483 $ 17,265,890 $ See accompanying notes to general purpose financial statements. 6 Debt Service 4,489,349 56,864 4,546,213 1,786,000 2,746,333 4,532,333 13,880 (7,550) (7,550) 6,330 2,054,908 2,061,238 Capital Projects $ 969,583 1,720,443 1,043,988 125,893 4,576,643 8,436,550 144,820 1,468,722 20,400 6,807,408 8,441,350 (4,800) 1,470,456 (1,178,356) 292,100 287,300 28,207,122 $ 28,494,422 Fiduciary Fund Type Expendable Trust $ 25,612 35,000 17,761 78,373 53,975 10,193 64,168 14,205 14,205 450,748 $ 464,953 $ Totals (Memorandum Only) 2001 39,753,729 844,793 1,337,617 3,989,893 9,223,148 12,019,807 4,684,447 71,853,434 5,737,343 24,437,700 8,669,755 3,454,234 6,381,725 2,923,669 10,935,705 1,786,000 2,746,333 67,072,464 4,780,970 7,070,234 (7,830,234) (760,000) 4,020,970 54,432,016 $ 2000 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) 57,821,075 $ 58,452,986 $ 54,432,016 7 City of San Rafael Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -General Fund, Special Revenue Funds, Debt Service Funds with Budgets, and Expendable Trust Funds with Budgets For the year ended June 30,2001 General Fund Special Revenue Funds Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES: Taxes and special assessments $31,524,020 $ 32,270,051 $ 746,031 $ 2,033,629 $ 2,024,746 $ (8,883) Licenses and permits 628,440 722,082 93,642 126,000 122,711 (3,289) Fines and forfeitures 1,289,456 1,310,708 21,252 82,000 26,909 (55,091) Uses of money and property 411,448 740,760 329,312 606,781 1,446,214 839,433 Intergovernmental 4,763,719 5,105,977 342,258 5,064,057 3,038,183 (2,025,874) Charges for current services 805,490 908,654 103,164 9,883,820 10,985,260 1,101,440 Other revenues 74,765 90,043 15,278 Total revenues 39,497,338 41,148,275 1,650,937 17,796,287 17,644,023 (152,264) EXPENDITURES: Current: General government 5,611,413 5,402,171 209,242 333,871 281,197 52,674 Public safety 19,474,681 19,889,700 (415,019) 4,494,218 4,548,000 (53,782) Public works and parks 4,562,437 4,788,883 (226,446) 3,757,757 3,736,052 21,705 Community development/redevelopment 1,928,395 1,816,471 111,924 169,041 (169,041) Culture and recreation 1,623,572 1,496,042 127,530 4,789,446 4,875,490 (86,044) Capital outlay 179,841 90,029 89,812 2,760,387 2,813,240 (52,853) Capital improvement/special projects 946,154 378,772 567,382 8,702,622 3,749,525 4,953,097 Debt service: Principal retirement Interest and fiscal charges Total expenditures 34,326,493 33,862,068 464,425 24,838,301 20,172,545 4,665,756 REVENUES OVER (UNDER) EXPENDITURES 5,170,845 7,286,207 2,115,362 (7,042,014) (2,528,522) 4,513,492 OTHER FINANCING SOURCES (USES): Operating transfers in (Note 5) 1,423,998 1,413,998 (10,000) 4,285,780 4,185,780 (100,000) Operating transfers out (Note 5) (5,745,732) (5,745,732) (1,008,596) (898,596) 110,000 Total other financing sources (uses) (4,321,734) (4,331,734) (10,000) 3,277,184 3,287,184 10,000 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ 849,111 2,954,473 $ 2,105,362 $ (3,764,830) 758,662 $ 4,523,492 FUND BALANCES: Beginning of year 7,212,010 16,507,228 End of year $10,166,483 $17,265,890 See accompanying notes to general purpose financial statements. 8 Debt Service Funds Expendable Trust Funds Totals (with Budgets) (with Budgets) (Memorandum Only) Variance Variance Variance Favorable Favorable Favorable Bud~ Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 4,509,325 $ 4,489,349 $ (19,976) $ $ $ $ 38,066,974 $38,784,146 $ 717,172 754,440 844,793 90,353 1,371,456 1,337,617 (33,839) 51,652 56,864 5,212 22,210 23,815 1,605 1,092,091 2,267,653 1,175,562 35,000 35,000 9,862,776 8,179,160 (1,683,616) 10,689,310 11,893,914 1,204,604 17,000 17,761 761 91,765 107,804 16,039 4,560,977 4,546,213 (14,764) 74,210 76,576 2,366 61,928,812 63,415,087 1,486,275 52,000 53,975 (1,975) 5,997,284 5,737,343 259,941 23,968,899 24,437,700 (468,801) 8,320,194 8,524,935 (204,741) 1,928,395 1,985,512 (57,117) 30,960 5,828 25,132 6,443,978 6,377,360 66,618 2,940,228 2,903,269 36,959 9,648,776 4,128,297 5,520,479 1,796,000 1,786,000 10,000 1,796,000 1,786,000 10,000 2,753,907 2,746,333 7,574 2,753,907 2,746,333 7,574 4,549,907 4,532,333 17,574 82,960 59,803 23,157 63,797,661 58,626,749 5,170,912 11,070 13,880 2,810 (8,750) 16,773 25,523 (1,868,849) 4,788,338 6,657,187 5,709,778 5,599,778 (110,000) (7,550) (7,550) _(6,754,328) (6,651,878) 102,450 (7,550) (7,550) (1,044,550) (1,052,100) (7,550) $ 11,070 6,330 $ (4,740) $ (8,750) 16,773 $ 25,523 $ (2,913,399) 3,736,238 $ 6,649,637 1,971,423 $ 1,977,753 415,782 $ 432,555 9 26,106,443 $29,842,681 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, 2001 (With comparative totals for the year ended June 30, 2000) Component Unit Primary San Rafael Totals Government Sanitation District (Memorandum Only) Internal Enterprise Service Fund 2001 2000 OPERATING REVENUES: Charges for current services $ 3,104,777 $ $ 3,104,777 $ 3,398,451 Refunds 95,560 95,560 73,013 Sewer charges 5,033,015 5,033,015 4,729,783 Connection fees 101,632 101,632 124,876 Other operating revenues 4,486 4,486 79,633 Total operating revenues 3,200,337 5,139,133 8,339,470 8,405,756 OPERATING EXPENSES: Contract services 115,906 115,906 Insurance premiums and claims 2,643,102 2,643,102 2,807,992 Capital outlay 4,434 4,434 Capital improvement projects 226,515 226,515 Sewage collection 1,418,561 1,418,561 1,632,159 Sewage treatment 1,970,028 1,970,028 1,866,300 Depreciation and amortization 837,418 837,418 786,445 General and administrative 203,602 203,602 206,402 Total operating expenses 2,989,957 4,429,609 7,419,566 7,299,298 OPERATING INCOME 210,380 709,524 919,904 1,106,458 NONOPERATING REVENUES (EXPENSES): Property taxes 493,661 493,661 442,365 Operating transfers in 850,000 850,000 487,269 Aid from governmental agencies 73,490 73,490 65,332 Gain on sale of fixed assets 8,260 8,260 Contribution to the District 206,008 206,008 Operating transfers out (90,000) (90,000) Investment income 358,614 171,235 529,849 286,537 Interest expense (184,600) (184,600) (268,760) Total nonoperating revenues 1,118,614 768,054 1,886,668 1,012,743 NET INCOME 1,328,994 1,477,578 2,806,572 2,119,201 Add: depreciation expense on assets acquired by contributed capital 290,598 290,598 28M78 Less: contributed capital received (206,008) (206,008) Increase in retained earnings 1,328,994 1,562,168 2,891,162 2,405,679 RETAINED EARNINGS: Beginning of year 3,253,889 13,731,140 16,985,029 14,579,350 End of year $ 4,582,883 $ 15,293,308 $ 19,876,191 $ 16,985,029 See accompanying notes to general purpose financial statements. 10 City of San Rafael Combined Statement of Cash Flows All Proprietary Fund Types and Discretely Presented Component Unit For the year ended June 30,2001 (With comparative totals for the year ended June 30, 2000) Primary Component Government Unit Internal Enterprise Service Fund CASH FLOWS FROM OPERATING ACTIVITIES: Operating income $ 210,380 $ 709,524 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization 837,418 Changes in current assets and liabilities: Receivables (6,898) Due to other governments (18,019) Prepaid expenses and other current assets (48,152) Accounts payable and other current liabilities 67,763 479,828 Insurance claims payable 355,563 Net cash provided by operating activities 633,706 1,953,701 CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES: Operating transfers in 850,000 Operating transfers out (90,000) Residual equity transfers from other funds Property taxes 493,661 Aid from governmental agencies 73,490 Net cash provided by noncapital financing activities 760,000 567,151 CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Cash paid for capital acquisitions (995,499) Interest received from certificates of participation principal cash 22,745 Principal payments on certificates of participation 571,281 Interest paid on certificates of participation (184,600) Net cash (used) by capital financing activities (586,073) CASH FLOWS FROM INVESTING ACTIVITIES: Gain on sale of fixed assets 8,260 Investment income 358,614 148,490 Net cash provided by investing activities 358,614 156,750 Net increase in cash and investments 1,752,320 2,091,529 CASH AND INVESTMENTS: Beginning of year 5,660,428 2,910,169 End of year $ 7,412,748 $ 5,001,698 See accompanying notes to general purpose financial statements. 11 Totals (Memorandum Only) 2001 2000 $ 919,904 $ 1,106,458 837,418 786,445 (6,898) (18,019) (48,152) (53,932) 547,591 86,898 355,563 240,338 2,587,407 2,166,207 850,000 487,269 (90,000) 1,293,252 493,661 442,365 73,490 65,332 1,327,151 2,288,218 (995,499) (635,731) 22,745 19,766 571,281 (210,000) (184,600) (268,760) (586,073) (1,094,725) 8,260 507,104 266,771 515,364 266,771 3,843,849 3,626,471 8,570,597 4,944,126 $ 12,414,446 $ 8,570,597 £1 S~Nawa~ V ~S 'lVIJNVNH aSO«:UIficl 'lV}mNa~ O~ Sa~ON vI City of San Rafael Notes to General Purpose Financial Statements For the year ended June 30, 2001 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, childcare, 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 Agency proposes to assist 15 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued 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 Toint 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, 2001 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 of, general long-term debt principal, interest, and related costs. Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities . 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, 2001 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued Fiduciary Fund Type: Expendable Trust Funds are accounted for in the same manner as governmental funds. All trust funds of the City are classified as expendable. Account Groups: The General Fixed Assets Account Group is used to maintain control and cost information on capital assets acquired to perform general government functions. The General Long-Term Debt Account Group is used to record the unmatured principal of tax allocation bonds, special assessment bonds, notes, compensated absences, the principal amount of future lease payments due under lease purchase agreements and other long-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 noncurrent 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 noncurrent) 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, 2001 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. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash except that revenues subject to accrual are recognized as income when due. Accrued revenues include property taxes, taxpayer-assessed tax revenues (sales taxes, transient occupancy taxes, franchise taxes, etc.) and earnings on investments. Grant revenues have been recorded according to the provisions of GASB, whereby grant funds received before the revenue recognition criteria have been met are reported as a receivable. Expenditures are recorded in the accounting period in which the related fund liability is incurred except for unmatured principal and interest on long-term debt, which are recognized when due, and compensated absences, which are recorded as a fund liability and an expenditure when expected to be liquidated with expendable available financial resources. All proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned and become measurable; expenses are recognized when they are incurred. The City applies all F ASB statements that do not conflict with or contradict GASB guidance. 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. 19 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 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. Because not all debt service funds have annual budget, the actual amounts that appear in the accompanying Combined Statement of Revenues, Expenditures and Changes in Fund Balances -All Governmental Fund Types and Expendable Trust Funds and Combined Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual - General Fund, Special Revenue Funds, Debt Service Funds with Budgets and Expendable Trust Funds with Budgets do not agree. A reconciliation of key information for the debt service funds and expendable trust funds between the two statements is presented below: Debt Service Funds: Actual amounts on the Combined Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Funds without annual budgets: East Francisco Boulevard Assessments District 1915 Act Bonds 1997 Reassessment Bonds Amounts on Combined Statement of Revenues, Expenditures and Changes in Fund Balances Expendable Trust Funds: Actual amounts on the Combined Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Funds without annual budgets: Recreation Fiduciary Amounts on Combined Statement of Revenues, Expenditures and Changes in Fund Balances 20 Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses $ 6,330 $ 6,330 $ 16,773 (2,568) $ 14[.205 Fund Balances $ $ $ $ 1,977,753 13,701 67,387 2,397 2,061,238 432,555 32,398 464,953 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued 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 based 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, 2001, were as follows: Original Supplemental Final Fund Budget A EEroEriations Budget General Fund $ 30,863,529 $ 3,462,964 $ 34,326,493 Special Revenue Funds 15,080,861 9,757,440 24,838,301 Debt Service Funds 4,542,357 7,550 4,549,907 Expendable Trust Funds 82,960 82,960 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. All unencumbered appropriations lapse at year end. 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. 21 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 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-Tenn Interfund ReceivabZes/payabZes During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and pay abies are classified as II due from other funds" or II 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 II 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. 22 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2001 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 /I 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 fees 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. 23 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2001 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 24 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2001 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued and vested, but unused, compensated absences expected to be paid subsequent to the end of current fiscal year, 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, 2001, 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 balances 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 Columns 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. Reclassifications Certain reclassifications have been made to prior year financial data in order to conform with the current year presentation. 25 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2001 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued R. Implementation o/New GASB Pronouncement In 2001, the City adopted a new accounting standard in order to conform to Governmental Accounting Standards Board Statement No. 33, Accounting and Financial Reporting for Non- Exchange Transactions. GASB No. 33 established recording assets and revenues when the underlying exchange occurred, enforceable legal claim had arisen, all eligibility requirements had been met or when resources were received, whichever was first. By adopting this Standard, the City recognized assets and revenues from Non-Exchange Transactions which included sales taxes, property taxes, other taxes, fines and forfeitures, certain grants and entitlements, and certain government mandates. These Non-Exchange Transactions were accounted for as susceptible to accrual using the measurable and available criteria. 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 $1,855,562 at June 30, 2001. Bank balances at June 30, 2001 were $2,518,565 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. 26 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 2. CASH AND INVESTMENTS, Continued B. Investments The City is authorized by State statutes and in accordance with the City's Investment Policy (the Policy), adopted on December 18, 2000, to invest in the following: D U.s. Government Obligations D U.s. Government Agencies and Instruments D Repurchase Agreements D Bankers Acceptances D Commercial Paper D Medium-Term Corporate Notes D Certificates of Deposit D Negotiable Certificates of Deposit D California Local Agency Investment Fund (LAIF) D Mutual Funds 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 gain (loss) in changes in fair value of investments Total investment income 27 $ 3,349,027 31,836 $ 3,380,863 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 2. CASH AND INVESTMENTS, Continued C. Risk Category 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 manner: Deposits: Category 1 -Insured or collateralized with securities held by the entity or by its agent in the entity's name. Category 2 -Collateralized with securities held by the pledging financial institution's trust department or agent in the entity's name. Category 3 -Deposits which are uninsured or uncollateralized. Investments: Category 1 -Insured or registered or securities held by the entity or its agent in the entity's name. Category 2 -Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the entity's name. Category 3 -Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the entity's name. Uncategorized -Certain cash deposits and investments are not subject to categorization under GASB Statement No.3. 28 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2001 2. CASH AND INVESTMENTS, Continued Pooled cash and investments were classified by risk category as follows at June 30, 2001: Category Category Category Fair 1 2 3 Uncategorized Value City Treasury: Demand Deposits: Cash Deposits $ 1,855,562 $ $ $ $ 1,855,562 Certificates of Deposit 490,517 490,517 Total demand deposits 2,346,079 2,346,079 Investments: Securities of U.S. Government Agencies 5,511,724 5,511,724 Corporate bonds and notes 8,371,731 8,371,731 Local Agency Investment Fund 25,980,875 25,980,875 Total investments 13,883,455 25,980,875 39,864,330 Total City treasury 2,346,079 13,883,455 25,980,875 42,210,409 Cash and Investments with Fiscal Agent 18,551,013 18,551,013 Total cash and investments $ 2,346,079 $ 13,883,455 $ 18,551,013 $ 25,980,875 $ 60,761,422 The City's investments with Local Agency Investment Fund (LAIF) at June 30, 2001, 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 as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables. As of June 30, 2001, the City had $25,980,875 invested in LAIF, which had invested 4.506% of the pool investment funds in Structured Notes and Asset-Backed Securities. The LAIF fair value factor of 1.002237525 was used to calculate the fair value of investments in LAIF. 29 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 2. CASH AND INVESTMENTS, Continued Cash and investments stated at fair value held in the City Treasury grouped by maturity date at June 30,2001, are shown below: Maturity Current to one year One to two years Two to three years Three to four years Four to five years Total D. Cash and Investments with Fiscal Agent $ $ Fair Value 31,509,217 1,504,360 517,865 1,636,771 7,042,196 42,210,409 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, 2001, cash and investments with fiscal agent totaling $18,551,013 were recorded at fair value. E. 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, 2001, amounted to $3,806,971 and $1,194,652, respectively, totaling $5,001,623. 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, 2001. Cash and investments at June 30, 2001, consisted of the following: Cash and investments $ 5,001,623 Petty cash 75 Total ~ 5,001,698 Umestricted cash: Cash $ 3,807,046 Restricted cash: Certificates of participation 1,194,652 Total ~ 5,001,698 30 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2001 3. RECEIVABLES As of June 30, 2001, receivables consisted of the following: Accounts $ 1,701,408 Taxes 5,151,973 Grants 287,975 Interest 721,313 Loans 995,938 Total $ 8,858,607 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, 2001, was as follows: General Fund $ 558,356 Special Revenue Funds: Recreation Revolving 140,471 Parking Services 19,535 Household Hazmat Facility 272,209 Public Safety 15,896 Total special revenue funds 448,111 Capital Projects Funds: Capital Improvement 194,488 Park Capital Projects 5,453 1995 Bonds Capital Project 495,000 Total capital projects funds 694,941 Total $ 1,701,408 31 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 3. RECEIVABLES, Continued B. Taxes Receivable As of June 30, 2001, the following taxes receivable were outstanding: Special Capital General Revenue Projects Fund Funds Funds Property taxes $ 373,403 $ $ 945,608 Sales taxes 2,948,943 Transient occupancy taxes 320,000 Franchise fees 314,023 Miscellaneous taxes & fees 143,580 106,416 Totals $ 4,099,949 $ 106,416 $ 945,608 C. Grants Receivable The total amount of grants receivable as of June 30, 2001, were as follows: D. Interest Receivable Special Revenue Funds: Childcare Library Grants Total $ 2,584 175,475 109,916 $ 287,975 As of June 30, 2001, interest receivable consisted of the followings: General Fund $ 674,163 Capital Projects Funds: Low and Moderate Income Housing 20,663 1999 Bonds Capital Project 26,487 Total $ 721,313 32 Totals $ 1,319,011 2,948,943 320,000 314,023 249,996 $ 5,151,973 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 3. RECEIV ABLES, Continued E. Loans Receivable The City had the following loans receivable at June 30, 2001: General Fund: Loan from City Manager Employees' Computer Loans Total general fund Special Revenue Funds: Traffic and Housing Mitigation: One "H II Street Associates Parkland Dedication: Muir Terrace Homes Total special revenue funds Capital Projects Funds: Park Capital Projects: Marin Bocce Federation Low and Moderate Income Housing: Marin Housing Development Centertown Associates Balloon Mortgage Loan Total capital projects funds Total $ 363,757 27,331 391,088 91,428 21,726 113,154 40,000 100,000 225,536 126,160 491,696 $ 995,938 On August 1, 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 home. The loan is secured by the Deed of Trust. The principal and interest are payable monthly commencing September 1, 1996 through August 31,2026. As of June 30, 2001, the outstanding balance of the loan was $363,757. On August 1, 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 home. The loan is secured by the Deed of Trust. The loan was paid in full as of June 30,2001. Effective February 1, 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, 2001, the outstanding balance of the employees' computer loans was $27,331. 33 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2001 3. RECEIVABLES, Continued E. Loans Receivable, Continued $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, 2001, the outstanding balance of the loan was $91,428. In April 1996, Muir Terrace Homes entered in agreement with the City to defer all development fee payments except the Traffic Mitigation fee is waived for the Below Market Rate units. The payments are due when the developer has sold all the units for low-mod income housing. The outstanding balance of the loan receivable at June 30, 2001 was $21,726. The City entered an interest free loan with the Marin Bocce Federation to finance the San Rafael Bocce Center projects. The loan is due in annual installments, due and by June 30 of each year in the amount of $5,000. The outstanding balance at June 30, 2001 was $40,000. $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, 2001, 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 1, 2065. The remaining loan receivable at June 30, 2001 was $225,536. On May 18, 2001, the San Rafael Redevelopment Agency entered a five-year balloon mortgage loan agreement with Brendan Mitchell in the amount of $126,160. The annual interest rate of the loan is 7.875%. The principal and interest are payable monthly in the amount of $915 on the first day of each month commencing July 1, 2001. The entire outstanding balance is due and payable on or before June 30, 2006. At June 30, 2001, the outstanding balance of the loan was $126,160. 34 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 4. DEFERRED REVENUE As of June 30, 2001, deferred revenue as related to certain receivables was recorded as follows: Special Revenue Funds: Recreation Revolving $ 135,604 Parkland Dedication 21,726 Capital Projects Funds: Park Capital Projects 40,000 Total $ 197,330 5. INTERFUND TRANSACTIONS A. Interfund Receivables and Payables As of June 30, 2001, balances of interfund receivables and payables were as follows: Due To Other Funds Capital Proj ects Special Revenue Funds Fund Traffic and Development Park Capital Housing Mitigation Services Libra2: Project Totals General $ $ $ 78,403 $ 5,000 $ 83,403 '" SpeciaJ Revenue Fund: "0 I':: ;:l Parkland Dedication 35,000 35,000 "" .... ., Capi tal Project Funds: ..s 0 Bedroom Tax 19,931 19,931 e 0 Low and Moderate Income Housing .... 200,000 200,000 "" ., 1995 Bonds Capital Projects ;:l 732,735 732,735 0 Totals $ 200,000 $ 732,735 $ 78,403 $ 59,931 $ 1,071,069 35 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 5. INTERFUND TRANSACTIONS, Continued B. Operating Transfers Operating transfers for the year ended June 30, 2001, were as follows: Special Revenue Funds Street Maintenance Recreation Equipment and Public General Revolving Replacements Cleaning Saleti: Stormwater Cenenll 907,852 914,268 $ 171,000 $ 1,718,211 $ 20,000 $ 626,175 Spe ci:!1 Rev enue Funds: Parking Services 56,396 Gas Tax 400,000 Child care 100,000 Sewer Maintenance 78,408 Grants 27,000 Emergency Medical Services 236,792 De b t Service Funds: :; Peacock Gap 0 ~ Assessment District 2,537 ~ Mariposa Assessment District 151 I-1997 Financing Authority Revenue Bonds 4862 C:lpit:ll Projects Funds : Assessment Districts 56,900 1995 Bonds Ca pital Project 1999 Bond Capital Project Intern a l Service Fund: Liability Insurance 90,000 Totals $ 1,413,998 $ 914,268 $ 171,000 $ 2,118,211 $ 20,000 $ 773,075 Capital Projects Funds Internal Service Funds 1985 Capital Project 1992 Bonds Capital and Capital Building Workers' Grants ImErovement Administration Projects Maintenance Comeensation Totals 189,226 $ 349,000 $ $ $ 450,000 400,000 $ 5,745,732 56,396 400,000 100,000 78,408 27,000 236,792 2,537 151 4,862 56,900 220,000 220,000 901,456 901,456 90,000 $ 189,226 $ 349,000 $ 901,456 $ 220,000 $ 450,000 $ 400,000 $ 7,920,234 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 6. FIXED ASSETS A summary of the City's changes in general fixed assets for the year ended June 30, 2001, follows: Changes of Capitalization Balance Amount July: 1, 2000 Additions Deletions Adjustments Land and buildings $ 22,224,349 $ $ (1,987) $ (10,404) Rolling equipment 6,046,409 1,528,102 (421,214) (1,971) Furniture and equipment 6,380,475 556,808 (50,468) (636,197) Improvements other than buildings 3,360,250 ~622~ Totals $ 38,011,483 $ 2,084,910 $ ~473,669~ $ ~649,1942 A summary of the District's fixed assets at June 30, 2001, follows: Land and easements Subsurface lines Sewage collection facilities General plant and administration Construction in progress Total Less accumulated depreciation Total 37 $ 115,329 12,152,655 22,700,473 41,785 754,661 35,764,903 (13,120,897) $ 22,644,006 Balance June 30, 2001 $ 22,211,958 7,151,326 6,250,618 3,359,628 $ 38,973,530 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 7. LONG-TERM DEBT The City records long-term debt of goverrunental funds in the General Long-Term Debt Account Group. Other goverrunental 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, 2001, was as follows: Balance Balance July 1, 2000 Additions Deletions June 30, 2001 San Rafael Joint Powers Financing Authority: 1997 Authority Revenue Bonds $ 4,315,000 $ $ {430,000l $ 3,885,000 San Rafael Redevelopment Agency Tax Allocation Bonds: Series 1992 15,100,000 (480,000) 14,620,000 Series 1995 7,855,000 (200,000) 7,655,000 Series 1999 22,944,004 {500,000~ 22,444,004 Total Tax Allocation Bonds 45,899,004 {1,180,000~ 44,719,004 Special Assessment Bonds (with governmental commitment): Peacock Gap Refunding 1,125,000 (195,000) 930,000 Mariposa Road Assessment 140,000 {15,000) 125,000 Total Special Assessment Bonds 1,265,000 {210,000l 1,055,000 Note Payable 169,000 169,000 Capitalized Lease Obligations 52,309 560,369 (192,178) 420,500 Compensated Absences 3,698,131 191,234 3,889,365 Total long-term debt $ 55,398,444 $ 751,603 $ (2,012,178) $ 54,137,869 Component Unit -San Rafael Sanitation District: 2001 Certificates of Participation $ $ 4,427,987 $ $ 4,427,987 1991 Certificates of Participation 3,856,706 {3,856,706l Totals $ 3,856,706 $ 4,427,987 $ {3,856,706) $ 4,427,987 38 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 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 Limited Obligation Refunding Bonds. The 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 on any March 2 or September 2 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 repayment of the Refunding Bonds and the reserve account are utilized to meet debt service requirements of the Revenue Bonds. The Refunding Bonds are secured by unpaid reassessments confirmed against private property within the Reassessment District. The outstanding balance of the bonds was $3,885,000 as of June 30, 2001. --... The annual debt service requirements on these bonds are as follows: Year Ending June 30, PrinciEal Interest Totals 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 2006 545,000 14,715 559,715 2007-2011 1,130,000 32,236 1,162,236 2012 270,000 8,100 278,100 Totals $ 3,885,000 $ 105,061 $ 3,990,061 39 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 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, to fund the construction of new improvements within the Project Area. 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. The bonds maturing after December 1, 2002 are subject to the optional redemption prior to maturity, in whole or in part, 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 by an irrevocable pledge of certain tax revenues and other funds. As of June 30, 2001, the outstanding balance of the bonds was $14,620,000. The annual debt service requirements on these bonds are as follows: Year Ending June 30, Princi£al Interest Totals 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 2006 640,000 796,746 1,436,746 2007-2011 3,865,000 3,320,305 7,185,305 2012-2016 5,280,000 1,908,555 7,188,555 2017-2018 2,620,000 256,065 2,876,065 Totals $ 14,620,000 $ 9,818,925 $ 24,438,925 40 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2001 7. LONG-TERM DEBT, Continued C. 1995 Tax Allocation Bonds -Original Issue $8,895,000 On October I, 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. The bonds 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, 2003, 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 outstanding balance of the bonds was $7,655,000 as of June 30, 2001. The annual debt service requirements on these bonds are as follows: Year Ending June 30, Princi,eal Interest Totals 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 2006 250,000 380,760 630,760 2007-2011 1,450,000 1,697,140 3,147,140 2012-2016 1,905,000 1,239,190 3,144,190 2017-2021 2,555,000 584,850 3,139,850 2022 610,000 18,300 628,300 Totals $ 7,655,000 $ 5,549,117 $ 13,204,117 41 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 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 bonds were issued as Current Interest Bonds in the aggregate principal amount of $21,115,000 and as Capital Appreciation Bonds in the original amount of $2,389,004. The proceeds of the bonds were used to finance certain redevelopment activities of benefit to the Agency's Central San Rafael Redevelopment Project Area. The Current Interest Bonds mature annually each December 1 from 2000 to 2022, in amounts ranging from $560,000 to $1,460,000 and bear interest at rates ranging from 4.50% to 5.00%. Interest is payable semiannually on June 1 and December 1. The 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 outstanding balance of the bonds was $22,444,004 as of June 30, 2001. The annual debt service requirements on these bonds are as follows: Year Ending June 30, Princi,ral Interest Totals 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 2006 630,000 865,525 1,495,525 2007-2011 3,655,000 3,834,332 7,489,332 2012-2016 4,670,000 2,818,250 7,488,250 2017-2021 7,398,794 1,491,875 8,890,669 2022-2023 3,835,210 144,250 3,979,460 Totals $ 22,444,004 $ 12,896,044 $ 35,340,048 42 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2001 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 fund 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, 2001, the outstanding balance of the bonds was $930,000. The annual debt service requirements on these bonds are as follows: Year Ending June 30, Princi.eal Interest Totals 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 2006 195,000 6,181 201,181 Totals $ 930,000 $ 140,575 $ 1,070,575 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 30,2001, the outstanding balance of the bonds was $125,000. 43 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2001 7. LONG-TERM DEBT, Continued The annual debt service requirements on these bonds are as follows: Year Ending June 30, Princi£al Interest Totals 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 2006 15,000 3,946 18,946 2007-2009 50,000 5,514 55,514 Totals $ 125,000 $ 35,217 $ 160,217 G. Note Payable At June 30, 2001, 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 in the amount of $113,814 including interest of $16,106. The lease is for five years beginning in 1998 through capital leasing arrangements. The lease expires in 2003. The City leased one fire truck in the amount of $558,370 including interest of $57,620. The annual lease payment of $186,124 for three years, including interest per year, started on April 10, 2001. The lease expires in 2003. The City leased two copiers. Copier one is in the amount of $16,800. The monthly lease payment is $280 for five years. The lease expires in 2004. Copier two is in the amount of $11,880. The monthly lease payment is $198 for five years. The lease expires in 2006. The City leased furniture in the amount of $30,939. The monthly lease payment of $619 for five years started in July 2000. The lease expires in 2006. 44 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 7. LONG-TERM DEBT, Continued The future minimum lease obligations are due as follows: Year Ending June 30, Ambulance Fire Truck Coriers 2002 $ 22,763 $ 186,123 $ 7,169 2003 11,381 186,124 6,636 2004 5,888 2005 2,490 2006 200 Minimum lease payments 34,144 372,247 22,383 Less amount representing interest {I,873 l {29,328l p,161 l Present value of minimum lease payments $ 32,271 $ 342,919 $ 19,222 1. Compensated Absences Furniture Totals $ 7,260 $ 223,315 7,426 211,567 7,471 13,359 7,379 9,869 619 819 30,155 458,929 {4,067l {38,429} $ 26,088 $ 420,500 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, 2001, the balance of compensated absences in the governmental fund types totaled $3,889,365. J. Component Unit -San Rafael Sanitation District -2001 Certificates of Participation - Original Issue $4,710,000 The District and its Financing Corporation on May 1, 2001 issued $4,710,000 of Certificates of Participation at discount of $35,121. The Certificates are to be used (1) to refund in whole the outstanding Series 1991 Certificates of Participation, (2) to finance the District's share of a new construction corporation yard, (3) to fund in whole or in part, a reserve fund for the Certificates, and (4) to pay certain costs of issuing the Certificates. The Certificates are fully registered with principal due annually on August 1 and interest payable semiannually on February 1 and August 1. The Certificates are subject to optional prepayment on any date on or after August 1, 2009. Terms of the Trust Agreement call for a call premium at 101 % to exercise optional prepayment between August 1, 2009 and July 31, 2010, and no premium August 1,2010 and after. 45 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2001 7. LONG-TERM DEBT, Continued The transaction advance refunded the 1991 Certificates by placing an amount in an irrevocable escrow fund sufficient to retire the debt on August I, 2001, terminating and legally defeasing the 1991 Certificates. The excess of the reacquisition price over the net carrying amount of the debt defeased resulted in a deferred amount on refunding of $246,892. The deferred amount on refunding as well as the discount are carried as a reduction of the certificates of participation to be amortized on a straight-line basis over the life of the new debt as a component of interest expense. The transaction reduced total cash flows by $44,969 and resulted in an economic gain of $263,736. The annual debt service requirements on these bonds are as follows: Year Ending June 30, Princi£al Interest Totals 2002 $ 325,000 $ 131,818 $ 456,818 2003 330,000 168,237 498,237 2004 345,000 157,010 502,010 2005 350,000 145,020 495,020 2006 365,000 132,142 497,142 2007-2011 2,995,000 448,775 3,443,775 Totals $ 4,710,000 $ 1,183,002 $ 5,893,002 Total debt outstanding as of June 3D, 2001, net of discounts and deferred amount on refunding were as follows: Principal outstanding at June 30, 2001 Less: Discount Deferred amount on refunding Net bonds outstanding at June 30, 2001 46 $ $ 4,710,000 (35,121) (246,892) 4,427,987 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 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. The City paid the note in full in June 2001. 9. NONCITY OBLIGATIONS The following bond issues are not reported in the City's financial statements, because these are special obligations payable solely from and secured by specific revenue sources described in the resolutions and official statements of the respective issues. Neither the faith and credit nor the taxing power of the City, the Redevelopment Agency, the State of California or any political subdivision thereof, is pledged for payment of these bonds. San Rafael Redevelopment Agency Multifamily Housing Revenue Bonds California Statewide Communities Development Authority Revenue Bonds Original Amount $ 3,590,529 5,605,000 Outstanding June 3D, 2001 $ 3,590,529 5,605,000 10. FUND BALANCES RESERVATIONS AND DESIGNATIONS Fund balances consist of reserved and umeserved amounts. Reserved fund balances represent that portion of a fund balance which is not appropriable for expenditure or is legally segregated for a specific future use. The remaining portion is umeserved fund balances. Portions of umeserved 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. 47 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2001 10. FUND BALANCES RESERVES AND DESIGNATIONS, Continued A detailed schedule of the fund balances at June 30, 2001, is shown as follows: Fiduciary Governmental Fund Types Fund Type Special Debt Capital Expendable General Revenue Service Projects Trust Reserved: Encumbrances $ 18,695 $ 591,246 $ $ 312,125 $ Petty cash 3,800 3,000 General plan 501,137 Department savings 401,670 Employee M.O.U. 1,602,425 Loans receivable 363,757 126,428 471,627 Employee benefits 618,000 Debt service 2,061,238 Improvement projects 190,411 677,249 19,447,278 Information systems projects 113,090 1,499,581 Equipment replacement 1,615,725 Buildings and structures 31,600 Facility closures 50,000 Assessment districts/ open space 12,401 823,849 Mello Roos assessment 300,000 Educational Revenue Augmentation Fund 168,469 Housing 2,555,201 School payments 308,000 Corporation yard 3,076,761 Total reserved 3,981,454 3,404,649 2,061,238 28,494,422 3,000 Unreserved, Designated: Library / endowments 3,757,328 311,183 424,982 Public safety 473,635 Grant projects 133,958 Park projects 621,366 36,971 Gas tax projects 942,036 Street projects 1,341,881 Traffic mitigation 9,366,285 Total designated 3,757,328 13,190,344 461,953 Unreserved, Undesignated 2,427,701 670,897 Totals $ 10,166,483 $ 17,265,890 $ 2,061,238 $ 28,494,422 $ 464,953 48 Totals $ 922,066 6,800 501,137 401,670 1,602,425 961,812 618,000 2,061,238 20,314,938 1,612,671 1,615,725 31,600 50,000 836,250 300,000 168,469 2,555,201 308,000 3,076,761 37,944,763 4,493,493 473,635 133,958 658,337 942,036 1,341,881 9,366,285 17,409,625 3,098,598 $ 58,452,986 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 11. EXCESS OF EXPENDITURES OVER APPROPRIATIONS Appropriations Expenditures Excess Special Revenue Funds: Recreation Revolving $ 1,936,545 $ 1,973,645 $ 37,100 Baypoint Lagoons Assessment District 26,981 45,370 18,389 Library Fund 290,662 330,693 40,031 Public Safety 155,273 191,208 35,935 Development Services 200,000 901,776 701,776 Parkland Dedication 87,270 143,771 56,501 Emergency Medical Services 2,852,169 2,950,881 98,712 Debt Service Fund: Peacock Gap Assessment District 271,572 285,901 14,329 Expendable Trust Fund: Business Improvement 52,000 53,975 1,975 12. CONTRIBUTED CAPITAL Changes in the District's balances of contributed capital were as follows: Component Unit: San Rafael Sanitation District Balance July 1,2000 Depreciation Attributable to Contributed Capital Balance June 30, 2001 $ 7,461,602 $ (84,590) $ 7,377,012 49 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 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 that sufficient assets will be available to pay Fund benefits when due. The City contributed 5.02% of payroll to the Fund for public safety personnel and 4.53% for other covered employees for the year ended June 30, 2001. The City, due to a collective bargaining agreement, also has a legal obligation to contribute one-half of the employees' contribution up to a maximum 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, 2001, of $2,187,000 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, 2000. 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 2000 actuarial valuation include an assumed rate of return on investment assets of 8.25%, and annual payroll increases of 4.12% 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 50 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30,2001 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 Information Fiscal Year Annual Pension Percentage of Net Pension EndinL Cost {APQ APC Contributed Obligation 6/30/99 $ 2,480,000 100% $ 6/30/00 2,503,855 100% 6/30/01 2,187,000 100% 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. 51 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 14. PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION RETIREMENT PLAN), Continued During the year, the City contributed $64,001 and employees contributed $64,001. The total covered payroll of employees participating in the plan for the year ended June 30,2001, was $1,706,673. The total payroll for the year was $28,689,408. 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, 2001, 192 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, 2001, those costs totaled $204,668. 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, 2001, is as follows: Types of goods or services provided Operating revenues Depreciation and amortization expense Operating income Tax revenues Nonoperating revenues (expenses) Net income Fixed asset additions Net working capital Total assets Long-term obligations payable from operating revenues Total fund equity 52 Wastewater Transmission $ 5,139,133 837,418 709,524 493,661 768,054 1,477,578 1,152,483 4,454,301 27,839,355 4,427,987 22,670,320 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 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 $14,500,000. 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 $33,576,352. The City accounts for and finances its uninsured risks of loss in the internal service funds. The City had established a claims liability of 2,754,026 at June 30, 2001, 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, 1999, 2000, and 2001, are as follows: Balance at Current Year Balance at General Beginning of Claims and Changes Claim End of Liabili~ Fiscal Year In Estimates Payments Fiscal Year 1998-99 $ 805,634 $ 2,009,846 $ (2,216,282) $ 599,198 1999-00 599,198 252,464 (565,313) 286,349 2000-01 286,349 263,884 (365,530) 184,703 Worker's Balance at Current Year Balance at Compensation Beginning of Claims and Changes Claim End of Liabili~ Fiscal Year In Estimates Payments Fiscal Year 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 2000-01 2,112,114 1,410,416 (953,207) 2,569,323 53 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 17. RISK MANAGEMENT, Continued The California Toint Powers Risk Managem ent 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 $234,094 in premiums to the Risk Management Authority during the fiscal year ended June 30, 2001. Condensed financial information for the California Joint Powers Risk Management Authority for the fiscal year ended June 30, 2001, was as follows: Assets $ 65,276,721 Liabilities $ 28,515,193 Equity: Retained earnings 36,761,528 Total liabilities and equity $ 65,276,721 Revenues $ 14,081,774 Expenses 2,181,279 Refunds to members (2,799,446) Net increase in retained earnings $ 13,463,607 18. 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 54 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 IS. JOINT VENTURES, JOINTLY GOVERNED ORGANIZATIONS AND RELATED PARTY TRANSACTIONS, 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 Authority (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 August 2002. The City has established a reserve in its internal service funds 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. 55 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 18. JOINT VENTURES, JOINTLY GOVERNED ORGANIZATIONS AND RELATED PARTY TRANSACTIONS, 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 Mal"in 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 tmoughout the County. The Governing Board of the Marin County Major Crimes Task Force consists of nine members: one city council member, one member of the Marin County Board of Supervisors, two city managers, two chief law enforcement officials, two residents of Marin County, and the Marin County Administrator. The Marin County Hazardous and Solid Waste Joint Powers Authority -was established by the County, local cities, and waste franchising districts to finance, prepare, and implement source reduction and recycling elements on a county-wide integrated waste management plan as required by State Assembly Bill 939. 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. 56 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 19. SAN RAFAEL SANITATION DISTRICT The San Rafael Sanitation District, a discretely presented component unit, condensed financial statements as of and for the year ended June 30, 2001, are presented below. Balance Sheet Current Assets : Cash and investments $ 5,001,698 Other current assets 193,651 Total current assets 5,195,349 General Fixed Assets, Net of Accumulated Depreciation 22,644,006 Total assets $ 27,839,355 Current Liabilities: Accounts and other pay abies $ 741,048 Total current liabilities 741,048 Long-Term Debt: Certificates of participation 4,427,987 Total long-term debt 4,427,987 Total liabilities 5,169,035 Fund Equity: Contributed capital 7,377,012 Retained earnings 15,293,308 Total fund equity 22,670,320 Total liabilities and fund equity $ 27,839,355 57 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 19. SAN RAFAEL SANITATION DISTRICT, Continued Statement of Revenues, Expenses and Changes in Retained Earnings Operating Revenues $ Operating Expenses: Sewage collection and treabnent Depreciation and amortization Other operating expenses Total operating expenses Operating income Nonoperating revenues (expenses), net Net income Add back depreciation expense on assets acquired by contributed capital Less contributed capital received Increase in retained earnings Retained earnings -July 1, 2000 Retained earnings -June 30, 2001 $ 20. CONTINGENT LIABILITIES 5,037,501 3,388,589 837,418 203,602 4,429,609 869,686 1,477,578 290,598 (206,008) 1,562,168 13,731,140 15,293,308 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. 58 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 21. SUBSEQUENT EVENTS San Rafael Redevelopment Agency Variable Rate Demand Multifamily Housing Revenue Bonds -Series 2001A -Original Issue $3,000,000 On September 19, 2001, the San Rafael Redevelopment Agency (Agency) issued Variable Rate Demand Multifamily Housing Revenue Bonds, series 2001 A, in the amount of $3,000,000. The proceeds of the bonds are used to provide financing for the acquisition and rehabilitation of a multifamily residential property located in the City. The principal on the bonds is payable upon the presentation and surrender of the bonds when due. Interest on the bonds is payable during a weekly interest rate period on the first business day of each month, commencing on October I, 2001. The bonds are subject to mandatory tender and redemption prior to their stated maturity date. The bonds are secured by a pledge of revenues and additionally secured by an irrevocable direct pay letter of credit. Therefore, the City and Agency have no direct or contingent liability or moral obligation for the payment of the bonds. San Rafael Redevelopment Agency Multifamily Housing Revenue Bonds, Series 2001A - Original Issue $3,220,000 On December 3, 2001, the San Rafael Redevelopment Agency (Agency) issued Multifamily Housing Revenue Bonds, series 2001A, in the amount of $3,220,000. The proceeds of the bonds are used to make a loan to Sanraf Associates, a California Limited Partnership, to provide financing for the acquisition and rehabilitation of a multifamily rental project located in the City and known as San Rafael Commons Apartments. The principal on the bonds is payable upon the presentation and surrender of the bonds when due. Interest on the bonds is payable during a weekly interest rate period on the first business day of each month, commencing on January 2, 2002. The bonds are subject to mandatory tender and redemption prior to their stated maturity date. The bonds are secured by a pledge of revenues and additionally secured by an irrevocable direct pay letter of credit. Therefore, the City and Agency have no direct or contingent liability or moral obligation for the payment of the bonds. 59 City of San Rafael Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 21. SUBSEQUENT EVENTS, Continued City of San Rafael Variable Rate Revenue Bonds -Series 200lA, 200lB, and 200lC -Original Issue $275,000,000 On November 15, 2001, the City of San Rafael issued Variable Rate Revenue Bonds, series 200lA, 200lB, and 200lC in the amount of $275,000,000. The proceeds of the bonds are used to provide financing for the acquisition, improvement and equipping of the health facilities known as San Rafael Medical Center. The principal on the bonds is payable upon the presentation and surrender of the bonds when due. Interest on the bonds is payable during a long-term interest rate period, a Commercial Paper interest rate period, or a weekly interest rate period. The bonds are subject to mandatory tender and redemption prior to their stated maturity date. The bonds are secured by a loan agreement Kaiser Foundation Hospitals and from certain funds held under the indenture. Therefore, the City and Agency have no direct or contingent liability or moral obligation for the payment of the bonds. 60 19 NOI.LYWllOtlNI AllY ~NaWalddnS GalllnOall City of San Rafael Required Supplemental Information For the year ended June 30, 2001 MARIN COUNTY EMPLOYEES' RETIREMENT SYSTEM SCHEDULE OF FUNDING PROGRESS Actuarial Actuarial Actuarial Accrued Excess Valuation Value Liability (AAL) Assets Funded Covered Date * of Assets Entry Age OverAAL Ratio Payroll 6/30/98 $131,142,000 $124,239,000 $ 6,903,000 106% $20,361,000 6/30/99 151,466,000 134,247,000 17,219,000 113% 23,293,000 6/30/00 171,663,000 156,806,000 14,857,000 109% 23,372,000 * Latest information available. 62 Excess Assets OverAAL As a % of Payroll 33.9% 73.9% 63.6% £9 NOll. VW}[OtlNI lV l.N3:W3:1ddnS v9 ''luvZq +.!az li llvuoH ual U ! a$vd sP-f,L GENERAL FUND The General Fund accounts for all financial resources and transactions except those required to be accounted for in other funds. 65 City of San Rafael Comparative Balance Sheets General Fund June 30, 2001 and 2000 ASSETS Cash and investments Accounts receivable Taxes receivable Interest receivable Loans receivable Due from other funds Prepaid expenses Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Developer bonds payable Deferred revenue Notes payable Total liabilities Fund Balances: Reserved: Encumbrances Unrealized investment gains Petty cash General plan Department savings Employee M.O.U. Loans receivable Employee benefits Improvement projects Information systems projects Educational Revenue Augmentation Fund Unreserved, designated Unreserved, undesignated Total fund balances Total liabilities and fund balances $ $ $ $ 66 2001 2000 5,413,876 $ 5,753,107 558,356 198,542 4,099,949 3,261,457 674,163 563,955 391,088 777,078 83,403 51,715 10,419 11,220,835 $ 10,616,273 1,007,453 $ 874,688 46,899 23,500 6,075 2,500,000 1,054,352 3,404,263 18,695 60,267 29,291 3,800 3,800 501,137 600,099 401,670 301,382 1,602,425 1,335,618 363,757 777,078 618,000 407,000 190,411 264,072 113,090 93,216 168,469 109,831 3,757,328 2,398,410 3,259,647 10,166,483 7,212,010 11,220,835 $ 10,616,273 City of San Rafael Comparative Statements of Revenues, Expenditures and Changes in Fund Balances General Fund For the years ended June 30,2001 and 2000 2001 REVENUES: Taxes and special assessments $ 32,270,051 Licenses and permits 722,082 Fines and forfeitures 1,310,708 Use of money and property 740,760 Intergovernmental 5,105,977 Charges for current services 908,654 Other revenues 90,043 Total revenues 41,148,275 EXPENDITURES: Current: General government 5,402,171 Public safety 19,889,700 Public works and parks 4,788,883 Community development/redevelopment 1,816,471 Culture and recreation 1,496,042 Capital outlay 90,029 Capital improvement/special projects 378,772 Total expenditures 33,862,068 REVENUES OVER EXPENDITURES 7,286,207 OTHER FINANCING SOURCES (USES): Operating transfers in 1,413,998 Operating transfers out (5,745,732) Total other financing uses (4,331,734) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 2,954,473 FUND BALANCES: Beginning of year 7,212,010 End of year $ 10,166,483 67 2000 $ 29,153,714 730,769 1,365,706 331,685 5,100,520 1,633,091 216,749 38,532,234 5,460,614 19,282,491 4,436,507 1,611,976 1,443,920 2,728,934 34,964,442 3,567,792 1,564,125 (5,967,365) (4,403,240) (835,448) 8,047,458 $ 7,212,010 City of San Rafael Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual General Fund For the year ended June 30, 2001 Variance Favorable Budget Actual (Unfavorable) REVENUES: Taxes and special assessments $ 31,524,020 $ 32,270,051 $ 746,031 Licenses and permits 628,440 722,082 93,642 Fines and forfeitures 1,289,456 1,310,708 21,252 Use of money and property 411,448 740,760 329,312 Intergovernmental 4,763,719 5,105,977 342,258 Charges for current services 805,490 908,654 103,164 Other revenues 74,765 90,043 15,278 Total revenues 39,497,338 41,148,275 1,650,937 EXPENDITURES: Current: General government 5,611,413 5,402,171 209,242 Public safety 19,474,681 19,889,700 (415,019) Public works and parks 4,562,437 4,788,883 (226,446) Community development/redevelopment 1,928,395 1,816,471 111,924 Culture and recreation 1,623,572 1,496,042 127,530 Capital outlay 179,841 90,029 89,812 Capital improvement/special projects 946,154 378,772 567,382 Total expenditures 34,326,493 33,862,068 464,425 REVENUES OVER (UNDER) EXPENDITURES 5,170,845 7,286,207 2,115,362 OTHER FINANCING SOURCES (USES): Operating transfers in 1,423,998 1,413,998 (10,000) Operating transfers out (5,745,732) (5,745,732) Total other financing uses ( 4,321,734) (4,331,734) (10,000) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ 849,111 2,954,473 $ 2,105,362 FUND BALANCES: Beginning of year 7,212,010 End of year $ 10,166,483 68 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 childcare 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. 69 OL SPECIAL REVENUE FUNDS, Continued Public Safety Fund -Established for special police services, which are intended to be self-funding. 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. 71 City of San Rafael Combining Balance Sheet Special Revenue Funds June 30, 2001 (With comparative totals for 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 Improvement projects Equipment replacement Parking equipment Building and structures Facility closures Assessment districts/ open space Mello Roos assessment Unreserved: Designated: Library /Endowments Public safety Grant projects Park projects Gas tax projects Street projects Traffic mitigation Undesignated Total fund balances Total liabilities and fund balances Recreation Revolving $ 165,702 140,471 $ 306,173 $ 7,768 135,604 143,372 6,223 156,578 162,801 $ 306,173 72 Baypoint Lagoons Assessment Parking Gas District Services Tax $ 12,401 $ 457,217 $ 866,303 19,535 106,416 $ 12,401 $ 476,752 $ 972,719 $ $ 7,060 $ 30,683 7,060 30,683 308,550 12,401 942,036 161,142 12,401 469,692 942,036 $ 12,401 $ 476,752 $ 972,719 / Street E' \ qUlpment Maintenance Sewer Childcare Replacement and Cleaning Maintenance $ 17,298 $ 2,487,458 $ 638,784 $ 45,719 2,584 $ 19,882 $ 2,487,45~ I $ 638,784 $ 45,719 $ 18,581 $ 602,832 $ 23,029 $ 18,581 602,8327 23,029 581,951 1,302,675 615,755 45,719 1,301 1,301 1,884,626 615,755 45,719 $ 19,882 $ 2,487,458 $ 638,784 $ 45,719 73 $ $ $ $ Household Hazmat Facility 223,418 272,209 495,627 157,616 157,616 2,000 4,500 31,600 50,000 249,911 338,011 495,627 Loch Lomond Assessment District Library $ 401,965 $ 175,475 $ 401,965 $ 175,475 $ $ 17,457 78,403 95,860 300,000 79,615 101,965 401,96V 79,615 $ 401,965 $ 175,475 (Continued) City of San Rafael Combining Balance Sheet Special Revenue Funds, Continued June 30, 2001 (With comparative totals for 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 Improvement projects Equipment replacement Parking equipment Building and structures Facility closures Assessment districts / open space Mello Roos assessment Unreserved: Designated: Library / endowments Public safety Grant projects Park projects Gas tax projects Street projects Traffic mitigation Undesignated Total fund balances Total liabilities and fund balances Public Safety $ 44,352 15,896 $ 60,248 $ 7,226 7,226 53,022 53,022 $ 60,248 74 Traffic and Housing Development Stormwater Mitigation Services $ 750,864 $ 9,801A14 $ 1,440,920 91,428 $ 750,864 $ 9,892,842 $ lA40,920 $ 70,457 $ 235,129 $ 29,436 1,500 200,000 732,735 70,457 435,129 763,671 91A28 677,249 680,407 9,366,285 680,407 9A57,713 677,249 $ 750,864 $ 9,892,842 $ 1A40,920 Emergency Totals Parkland Medical Grants Dedication Services 2001 2000 $ 482,901 $ 621,366 $ 385,619 $ 18,843,701 $ 16,213,100 448,111 611,960 106,416 1,207 109,916 287,975 231,066 21,726 113,154 94,286 35,000 35,000 42,654 $ 592,817 $ 678,092 $ 385,619 $ 19,834,357 $ 17,194,273 $ 155,116 $ $ 36,109 $ 1,398,499 $ 598,031 1,500 1,500 1,011,138 39,369 21,726 157,330 48,145 155,116 21,726 36,109 2,568,467 687,045 1,072 591,246 648,218 35,000 126,428 94,286 677,249 1,257,936 1,615,725 1,968,544 205,700 31,600 30,000 50,000 30,000 12,401 31,520 300,000 250,000 231,568 311,183 61,241 71,103 349,510 473,635 114,540 133,958 133,958 280,473 621,366 621,366 720,822 942,036 1,293,458 1,341,881 9,366,285 7,859,252 670,897 1,661,238 437,701 656,366 349,510 17,265,890 16,507,228 $ 592,817 $ 678,092 $ 385,619 $ 19,834,357 $ 17,194,273 (Concluded) 75 City of San Rafael Combining Statement of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds For the year ended June 30, 2001 (With comparative totals for the year ended June 30, 2000) Baypoint Lagoons Recreation Assessment Parking Revolving District Services REVENUES: Taxes and special assessments $ $ 25,330 $ Licenses and permits 108,676 Fines and forfeitures Uses of money and property 6,274 921 26,347 Intergovernmental Charges for current services 1,070,886 729,548 Other revenues Total revenues 1,077,160 26,251 864,571 EXPENDITURES: Current: General government 227,486 Public safety 328,603 Public works and parks 45,370 96,909 Community development/ redevelopment Culture and recreation 1,954,568 Capital outlay 19,077 Capital improvement/special projects Total expenditures 1,973,645 45,370 652,998 REVENUES OVER (UNDER) EXPENDITURES (896,485) (19,119) 211,573 OTHER FINANCING SOURCES (USES): Operating transfers in 914,268 Operating transfers out (56,396) Total other financing sources (uses) 914,268 (56,396) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 17,783 (19,119) 155,177 FUND BALANCES: Beginning of year 145,018 31,520 314,515 End of year $ 162,801 $ 12,401 $ 469,692 76 Gas Tax $ 82,907 1,080,248 1,163,155 83,504 15,744 1,015,329 1,114,577 48,578 (400,000) (400,000) (351,422) 1,293,458 $ 942,036 (rV) 6 0 \ vJ>r Street Household Loch Lomond Equipment Maintenance Sewer Hazmat Assessment Childcare Re.r.lacement and ~leaning _ Maintenance --- Facility District Library $ $ $ $ $ $ 60,848 $ 14,035 1,108 192,826 68,117 12,000 29,604 20,023 48,372 258,410 390,261 11,640 275,466 2,093,853 955,740 408 806,796 809,908 25,229 2,353,371 1,148,566 458,786 818 ,796 865,187 80,871 349,067 46,138 882,945 27,432 1,855,079 742,023 55 2,239,685 330,693 14,104 1,888,269 1,467 21,331 783,025 2,253,789 1,961 ,839 2,639,571 742,023 904,276 55 330,693 99,582 (813,273) (2,180,785) 76,773 (39 ,089 ) 80,816 18,374 171,000 2,118,211 (100,000) (78,408) (100,000) 171 ,000 2,118,211 (78,408) (418) (642,273) (62,574) (1,635) (39,089) 80;816 18,374 1,719 $ 1,301 $ 2,526,899 678,329 1,884,62,6/ $ 615,755 47,354 377,100 321,149 61,241 $ 45,719 $ 338,011 $ 401,965 $ 79,615 (Continued) 77 City of San Rafael Combining Statement of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds, Continued For the year ended June 30, 2001 (With comparative totals for the year ended June 30,2000) Traffic and Public Housing Safety Stormwater Mitigation REVENUES: Taxes and special assessments $ $ $ Licenses and permits Fines and forfeitures 25,909 1,000 Uses of money and property 2,480 27,650 717,570 Intergovernmental 74,488 Charges for current services 23,746 816,583 1,715,615 Other revenues Total revenues 126,623 845,233 2,433,185 EXPENDITURES: Current: General government Public safety 120,996 Public works and parks 885,680 Community development/ redevelopment Culture and recreation Capital outlay 70,212 2,681 Capital improvement/special projects 307,153 929,010 Total expenditures 191,208 1,195,514 929,010 REVENUES OVER (UNDER) EXPENDITURES (64,585) (350,281) 1,504,175 OTHER FINANCING SOURCES (USES): Operating transfers in 20,000 773,075 Operating transfers out Total other financing sources (uses) 20,000 773,075 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (44,585) 422,794 1,504,175 FUND BALANCES: Beginning of year 97,607 257,613 7,953,538 End of year $ 53,022 $ 680,407 $ 9,457,7l3 78 Development Services $ 110,143 210,946 321,089 169,041 732,735 901,776 (580,687) (580,687) 1,257,936 $ 677,249 $ $ Grants 31,772 947,670 147,124 1,126,566 7,573 271,917 336,320 40,278 585,461 1,241,549 (114,983) 189,226 (27,000) 162,226 47,243 390,458 437,701 $ $ Emergency Parkland Medical Dedication Services $ 1,938,568 59,909 8,191 17,658 1,561,220 77,567 3,507,979 2,943,539 14,224 7,342 129,547 143,771 2,950,881 (66,204) 557,098 (236,792) (236,792) (66,204) 320,306 722,570 29,204 656,366 $ 349,510 Totals $ 2001 2,024,746 122,711 26,909 1,446,214 3,038,183 10,985,260 17,644,023 281,197 4,548,000 3,736,052 169,041 4,875,490 2,813,240 3,749,525 20,172,545 (2,528,522) 4,185,780 (898,596) 3,287,184 758,662 16,507,228 $ 17,265,890 79 $ 2000 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 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Special Revenue Funds For the year ended June 30, 2001 Recreation Revolving Baypoint Lagoons Assessment District Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES: Taxes and special assessments $ $ $ $ 27,500 $ 25,330 $ (2,170) Licenses and permits Fines and forfeitures Uses of money and property 3,674 6,274 2,600 400 921 521 Intergovernmental Charges for current services 1,033,421 1,070,886 37,465 Other revenues Total revenues 1,037,095 1,077,160 40,065 27,900 26,251 (1,649) EXPENDITURES: Current: General government Public safety Public works and parks 26,981 45,370 (18,389) Community development/ redevelopment Culture and recreation 1,905,333 1,954,568 (49,235) Capital outlay 31,212 19,077 12,135 Capital improvement/special projects Total expenditures 1,936,545 1,973,645 (37,100) 26,981 45,370 (18,389) REVENUES OVER (UNDER) EXPENDITURES (899,450) (896,485) 2,965 919 (19,119) (20,038) OTHER FINANCING SOURCES (USES): Operating transfers in 914,268 914,268 Operating transfers out Total other financing sources (uses) 914,268 914,268 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ 14,818 17,783 $ 2,965 $ 919 (19,119) $ (20,038) FUND BALANCES: Beginning of year 145,018 31,520 End of year $ 162,801 $ 12,401 80 Parking Services Variance Favorable Budget Actual (Unfavorable) Budget $ $ $ $ 114,000 108,676 (5,324) 10,869 26,347 15,478 51,612 1,091,500 685,500 729,548 44,048 810,369 864,571 54,202 1,143,112 224,678 227,486 (2,808) 349,097 328,603 20,494 103,718 96,909 6,809 82,113 1,470,000 677,493 652,998 24,495 1,552,113 132,876 211,573 78,697 (409,001) (56,396) (56,396) ___ _ (400,000) (56,396) (56,396) (400,000) ---- $ 76,480 155,177 $ 78,697 $ (809,001) 314,515 $ 469,692 Gas Tax Variance Favorable Actual (Unfavorable) Budget $ $ $ 82,907 31,295 2,906 1,080,248 (11,252) 235,738 2,208,148 1,163,155 20,043 2,446,792 83,504 (1,391) 2,307,462 15,744 (15,744) 28,351 1,015,329 454,671 1,114,577 437,536 2,335,813 48,578 457,579 110,979 (400,000) ___ _ (110,000) (400,000) (110,000) ---- (351,422) $ 457,579 $ 979 1,293,458 $ 942,036 81 zp o'~ -- , Childcare Variance Favorable Actual (Unfavorable) $ $ 1,108 (1,798) 258,410 22,672 2,093,853 (114,295) 2,353,371 (93,421) 2,239,685 67,777 14,104 14,247 2,253,789 82,024 99,582 (11,397) (100,000) 10,000 (100,000) 10,000 (418) $ (1,397) 1,719 $ 1,301 I (Continued) City of San Rafael Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Special Revenue Funds, Continued For the year ended June 30, 2001 Equipment Replacement Street Maintenance and Clearing Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES: Taxes and special assessments $ $ $ $ $ $ Licenses and permits Fines and forfeitures Uses of money and property 103,034 192,826 89,792 24,785 68,117 43,332 Intergovernmental 1,499,157 390,261 (1,108,896) Charges for current services 908,436 955,740 47,304 2,300 408 (1,892) Other revenues Total revenues 1,011,470 1,148,566 137,096 1,526,242 458,786 (1,067,456) EXPENDITURES: Current: General government 101,864 46,138 55,726 Public safety Public works and parks 27,432 (27,432) 1,882,764 1,855,079 27,685 Community development/ redevelopment Culture and recreation Capital outlay 2,547,551 1,888,269 659,282 5,000 1,467 3,533 Capital improvement/special projects 2,089,000 783,025 1,305,975 Total expenditures 2,649,415 1,961,839 687,576 3,976,764 2,639,571 1,337,193 REVENUES OVER (UNDER) EXPENDITURES (1,637,945) (813,273) 824,672 (2,450,522) (2,180,785) 269,737 OTHER FINANCING SOURCES (USES): Operating transfers in 171,000 171,000 2,118,211 2,118,211 Operating transfers out Total other financing sources (uses) 171,000 171,000 2,118,211 2,118,211 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ (1,466,945) (642,273) $ 824,672 $ (332,311) (62,574) $ 269,737 FUND BALANCES: Beginning of year 2,526,899 678,329 End of year $ 1,884,626 $ 615,755 82 Sewer Maintenance Household Hazmat Facility Loch Lomond Assessment District Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Bud~et Actual (Unfavorable) Budget Actual (Unfavorable) $ $ $ $ $ $ $ 60,129 $ 60,848 $ 719 12,000 14,035 2,035 12,000 12,000 28,174 29,604 1,430 11,382 20,023 8,641 15,000 11,640 (3,360) 855,750 806,796 (48,954) 880,320 809,908 (70,412) 867,750 818,796 (48,954) 935,494 865,187 (70,307) 71,511 80,871 9,360 922,250 882,945 39,305 806,603 742,023 64,580 5,506 55 5,451 10,916 21,331 (10,415) 806,603 742,023 64,580 933,166 904,276 28,890 5,506 55 5,451 61,147 76,773 15,626 2,328 (39,089) (41,417) 66,005 80,816 14,811 (78,408) (78,408) ___ _ (78,408) (78,408) ____________________________ _ $ (17,261) (1,635) $ 15,626 $ 2,328 (39,089) $ (41,417) $ 66,005 80,816 $ 14,811 47,354 377,100 321,149.-/ $ 45,719 $ 338,011 $ 401,965.-'" (Continued) 83 City of San Rafael Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Special Revenue Funds, Continued For the year ended June 30, 2001 Library Public Safety Variance Favorable Budget Actual (Unfavorable) Budget Actual REVENUES: Taxes and special assessments $ $ $ $ $ Licenses and permits Fines and forfeitures 25,909 Uses of money and property 38,069 48,372 10,303 335 2,480 Intergovernmental 254,425 275,466 21,041 127,300 74,488 Charges for current services 16,000 25,229 9,229 3,700 23,746 Other revenues Total revenues 308,494 349,067 40,573 131,335 126,623 EXPENDITURES: Current: General government Public safety 90,273 120,996 Public works and parks Community development/ redevelopment Culture and recreation 285,502 330,693 (45,191) Capital outlay 5,160 5,160 65,000 70,212 Capital improvement/ special projects Total expenditures 290,662 330,693 (40,031) 155,273 191,208 REVENUES OVER (UNDER) EXPENDITURES 17,832 18,374 542 (23,938) (64,585) OTHER FINANCING SOURCES (USES): Operating transfers in 20,000 20,000 Operating transfers out Total other financing sources (uses) 20,000 20,000 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ 17,832 18,374 $ 542 $ (3,938) (44,585) FUND BALANCES: Beginning of year 61,241 97,607 End of year $ 79,615 $ 53,022 84 Variance Favorable (Unfavorable) $ 25,909 2,145 (52,812) 20,046 (4,712) (30,723) (5,212) (35,935) (40,647) $ (40,647) Budget $ 2,000 28,001 835,445 865,446 850,072 928,248 1,778,320 (912,874) 773,075 773,075 $ (139,799) Stormwater Traffic and Housing Mitigation Development Services Variance Favorable Actual (Unfavorable) Budget $ $ $ 1,000 (1,000) 27,650 (351) 224,513 877,500 816,583 (18,862) 575,000 845,233 (20,213) 1,677,013 885,680 (35,608) 2,681 (2,681) 307,153 621,095 3,251,553 1,195,514 582,806 3,251,553 (350,281) 562,593 (1,574,540) 773,075 773,075 422,794 $ 562,593 $ (1,574,540) 257,613 $ 680,407 Variance Favorable Actual (Unfavorable) Bud.l2.et $ $ $ 717,570 493,057 28,600 (877,500) 1,715,615 1,140,615 200,000 2,433,185 756,172 228,600 929,010 2,322,543 200,000 929,010 2,322,543 200,000 1,504,175 3,078,715 28,600 1,504,175 $ 3,078,715 $ 28,600 7,953,538 $ 9,457,713 85 Variance Favorable Actual (Unfavorable) $ $ 110,143 81,543 210,946 10,946 321,089 92,489 169,041 (169,041) 732,735 (732,735) 200,000 901,776 (701,776) (580,687) (609,287) (580,687) $ (609,287) 1,257,936 $ 677,249 (Continued) City of San Rafael Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Special Revenue Funds, Continued For the year ended June 30, 2001 Grants Parkland Dedication Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES: Taxes and special assessments $ $ $ $ $ $ Licenses and permits Fines and forfeitures 80,000 (80,000) Uses of money and property 15,484 31,772 16,288 22,943 59,909 36,966 Intergovernmental 963,437 947,670 (15,767) Charges for current services 267,000 147,124 (119,876) 12,800 17,658 4,858 Other revenues Total revenues 1,325,921 1,126,566 (199,355) 35,743 77,567 41,824 EXPENDITURES: Current: General government 7,329 7,573 (244) Public safety 309,536 271,917 37,619 Public works and parks Community development/ redevelopment Culture and recreation 277,419 336,320 (58,901) 13,730 14,224 (494) Capital outlay 38,090 40,278 (2,188) Capital improvement/special projects 690,281 585,461 104,820 73,540 129,547 (56,007) Total expenditures 1,322,655 1,241,549 81,106 87,270 143,771 (56,501) REVENUES OVER (UNDER) EXPENDITURES 3,266 (114,983) (118,249) (51,527) (66,204) (14,677) OTHER FINANCING SOURCES (USES): Operating transfers in 289,226 189,226 (100,000) Operating transfers out (127,000) (27,000) 100,000 Total other financing sources (uses) 162,226 162,226 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ 165,492 47,243 $ (118,249) $ (51,527) (66,204) $ (14,677) FUND BALANCES: Beginning of year 390,458 722,570 End of year $ 437,701 $ 656,366 86 Emergency Medical Services Variance Favorable Budget Actual (Unfavorable) $ 1,946,000 $ 1,938,568 $ (7,432) 8,191 8,191 1,400,000 1,561,220 161,220 3,346,000 3,507,979 161,979 2,823,062 2,943,539 (120,477) 29,107 7,342 21,765 2,852,169 2,950,881 (98,712) 493,831 557,098 63,267 (236,792) (236,792) ___ _ (236,792) (236,792) ---- Budget $ 2,033,629 126,000 82,000 606,781 5,064,057 9,883,820 17,796,287 333,871 4,494,218 3,757,757 4,789,446 2,760,387 8,702,622 24,838,301 (7,042,014) 4,285,780 (1,008,596) 3,277,184 $ 257,039 320,306 $ 63,267 $ (3,764,830) 29,204 $ 349,510 Totals Variance Favorable Actual (Unfavorable) $ 2,024,746 $ (8,883) 122,711 (3,289) 26,909 (55,091) 1,446,214 839,433 3,038,183 (2,025,874) 10,985,260 1,101,440 17,644,023 (152,264) 281,197 52,674 4,548,000 (53,782) 3,736,052 21,705 169,041 (169,041) 4,875,490 (86,044) 2,813,240 (52,853) 3,749,525 4,953,097 20,172,545 4,665,756 (2,528,522) 4,513,492 4,185,780 (100,000) (898,596) 110,000 3,287,184 10,000 758,662 $ 4,523,492 16,507,228 $17,265,890 87 (Concluded) 88 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. 89 City of San Rafael Combining Balance Sheet Debt Service Funds June 30, 2001 (With comparative totals for June 30, 2000) ASSETS Cash and investments Taxes receivable Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts 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 $ 90 Peacock Gap 1915 Mariposa Assessment Act Assessment District Bonds District 333,480 $ 67,387 $ 36,580 333,480 $ 67,387 $ 36,580 $ $ 333,480 67,387 36,580 333,480 67,387 36,580 333,480 $ 67,387 $ 36,580 1997 Reassessment Bonds 1997 Financing Authority Revenue Bonds $ 2,397 $ 976,156 $ 2,397 $ 976,156 $ $ 2,397 976,156 2,397 976,156 $ 2,397 $ 976,156 $ 1992 Agency Refunding Bonds 48 $ 1995 Agency Bonds 631,489 $ 48 $ 631,489 $ $ 48 631,489 48 631,489 $ 48 $ 631,489 91 $ $ $ $ 1999 Agency Bonds $ $ $ $ Totals 2001 2,061,238 $ 2000 2,058,424 1,359 2,061,238 $ 2,059,783 $ 3,345 1,530 4,875 2,061,238 2,054,908 2,061,238 2,054,908 2,061,238 $ 2,059,783 City of San Rafael Combining Statement of Revenues, Expenditures and Changes in Fund Balances Debt Service Funds For the year ended June 30, 2001 (With comparative totals for the year ended June 30,2000) East Francisco Peacock Boulevard Gap 1915 Assessments Assessment Act District District Bonds REVENUES: Taxes and special assessments $ $ 219,885 $ Fines and forfeitures Uses of money and property 14,241 Total revenues 234,126 EXPENDITURES: Debt service: Principal retirement 195,000 Interest and fiscal charges 90,901 Total expenditures 285,901 REVENUES OVER (UNDER) EXPENDITURES (51,775) OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out (2,537) Total other financing uses (2,537) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (54,312) FUND BALANCES: Beginning of year 13,701 387,792 67,387 End of year $ 13,701 $ 333,480 $ 67,387 92 Mariposa Assessment District $ 24,885 1,525 26,410 15,000 10,437 25,437 973 (151) (151) 822 35,758 $ 36,580 1997 Reassessment Bonds $ 2,397 1997 Financing Authority Revenue Bonds $ 691,411 41,031 732,442 396,000 273,356 669,356 63,086 (4,862) (4,862) 58,224 917,932 $ 1992 Agency Refunding Bonds 1,425,661 46 1,425,707 480,000 945,661 1,425,661 46 46 2 $ $ 2,397 $ 976,156 $ 48 $ 1995 Agency Bonds 629,978 $ 21 629,999 200,000 428,449 628,449 1,550 1,550 629,939 631,489 $ 1999 Agency Bonds 1,497,529 $ 1,497,529 500,000 997,529 1,497,529 $ ===== 93 Totals 2001 4,489,349 $ 56,864 4,546,213 1,786,000 2,746,333 4,532,333 13,880 (7,550) (7,550) 6,330 2000 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) 2,054,908 2,098,093 2,061,238 $ 2,054,908 City of San Rafael Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Debt Service Funds (With Budgets) For the year ended June 30, 2001 Peacock Gap Assessment District Mariposa Assessment District Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES: Taxes and special assessments $ 222,615 $ 219,885 $ (2,730) $ 26,000 $ 24,885 $ (1,115) Fines and forfeitures Uses of money and property 20,147 14,241 (5,906) 1,652 1,525 (127) Total revenues 242,762 234,126 (8,636) 27,652 26,410 (1,242) EXPENDITURES: Debt service: Principal retirement 200,000 195,000 5,000 15,000 15,000 Interest and fiscal charges 71,572 90,901 (19,329) 10,496 10,437 59 Total expenditures 271,572 285,901 (14,329) 25,496 25,437 59 REVENUES OVER (UNDER) EXPENDITURES (28,810) (51,775) (22,965) 2,156 973 (1,183) OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out (2,537) (2,537) (151) (151) Total other financing sources (uses) (2,537) (2,537) (151) (151) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ (28,810) (54,312) $ (25,502) $ 2,156 822 $ (1,334) FUND BALANCES: Beginning of year 387,792 35,758 End of year $ 333,480 $ 36,580 94 1997 Financing Authority Revenue Bonds 1992 Agency Refunding Bonds 1995 Agency Bonds $ Budget 689,210 11,353 700,563 401,000 270,839 671,839 28,724 $ 28,724 $ Variance Favorable Actual (Unfavorable) Budget 691,411 41,031 732,442 396,000 273,356 669,356 63,086 $ 2,201 $ 1,425,661 29,678 13,500 31,879 1,439,161 5,000 480,000 (2,517) 950,161 2,483 1,430,161 34,362 9,000 (4,862) (4,862) ___ _ (4,862) (4,862) ___ _ 58,224 $ 29,500 $ 9,000 917,932 $ 976,156 Variance Favorable Actual (Unfavorable) Budget $ 1,425,661 46 1,425,707 480,000 945,661 1,425,661 46 $ 46 $ 2 $ 48 95 $ (13,454) (13,454) 4,500 4,500 629,978 5,000 634,978 200,000 434,978 634,978 (8,954) =$==== $ Actual 629,978 21 629,999 200,000 428,449 628,449 1,550 Variance Favorable (Unfavorable) $ (4,979) (4,979) 6,529 6,529 1,550 1,550 $ 1,550 629,939 $ 631,489 (Continued) City of San Rafael Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Debt Service Funds (With Budgets), Continued For the year ended June 30, 2001 1999 Agency Bonds Totals Variance Favorable Budget Actual (Unfavorable) Budget Actual REVENUES: Taxes and special assessments $ 1,515,861 $ 1,497,529 $ (18,332) $ 4,509,325 $ 4,489,349 Fines and forfeitures Uses of money and property 51,652 56,864 Total revenues 1,515,861 1,497,529 (18,332) 4,560,977 4,546,213 EXPENDITURES: Debt service: Principal retirement 500,000 500,000 1,796,000 1,786,000 Interest and fiscal charges 1,015,861 997,529 18,332 2,753,907 2,746,333 Total expenditures 1,515,861 1,497,529 18,332 4,549,907 4,532,333 REVENUES OVER (UNDER) EXPENDITURES 11,070 13,880 OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out (7,550) Total other financing sources (uses) (7,550) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ $ $ 11,070 6,330 FUND BALANCES: Beginning of year 1,971,423 End of year $ $ 1,977,753 96 Variance Favorable (Unfavorable) $ (19,976) 5,212 (14,764) 10,000 7,574 17,574 2,810 (7,550) (7,550) $ (4,740) (Concluded) 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 under grounding along West Francisco and renovation of the Pickleweed Community Center Fields. 97 City of San Rafael Combining Balance Sheet Capital Projects Funds June 30, 2001 (With comparative totals for June 30, 2000) ASSETS Cash and investments Accounts receivable Taxes receivable Interest receivable Loans receivable Due from other funds Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Developer bonds payable Arbitrage payable Due to other funds Deferred revenue Total liabilities Fund Balances: Reserved: Encumbrances Loans receivable Improvement projects Information system projects Assessment districts / open space Arbitrage payments Housing School payments Corporation yard Total fund balances Total liabilities and fund balances Capital Open Space Improvement $ 600,175 $ 5,707,572 194,488 $ 600,175 $ 5,902,060 $ $ 216,191 216,191 8,400 1,995,977 1,499,581 600,175 2,181,911 600,175 5,685,869 $ 600,175 $ 5,902,060 98 Park Bedroom Assessment Capital Tax Districts Projects $ 109,222 $ 223,674 $ 70,507 5,453 40,000 19,931 $ 129,153 $ 223,674 $ 115,960 $ $ $ 59,931 40,000 99,931 129,153 16,029 223,674 129,153 223,674 16,029 $ 129,153 $ 223,674 $ 115,960 Low and 1985 Capital Moderate 1992 Bonds 1995 Bonds 1999 Bonds Totals Project and Income Capital Capital Capital Administration Housing Project Project Project 2001 2000 $ 255,438 $ 1,735,167 $ 547,950 $ 944,499 $ 16,366,109 $ 26,560,313 $ 27,464,935 495,000 694,941 173,642 945,608 945,608 933,363 20,663 26,487 47,150 87,402 451,696 491,696 325,536 200,000 732,735 952,666 305,716 $ 255,438 $ 3,353,134 $ 547,950 $ 2,172,234 $ 16,392,596 $ 29,692,374 $ 29,290,594 $ 39,166 $ 44,394 $ 4,113 $ 147,911 $ 282,379 $ 734,154 $ 658,266 25,000 25,000 25,000 338,867 338,867 59,931 359,186 40,000 41,020 64,166 44,394 4,113 147,911 621,246 1,197,952 1,083,472 1,882 301,843 312,125 68,879 451,696 451,696 325,536 189,390 543,837 1,129,473 15,463,350 19,467,209 12,742,281 1,499,581 824,193 823,849 832,965 77,150 2,555,201 2,555,201 2,967,670 308,000 308,000 3,900,068 894,850 3,076,761 6,468,380 191,272 3,308,740 543,837 2,024,323 15,771,350 28,494,422 28,207,122 $ 255,438 $ 3,353,134 $ 547,950 $ 2,172,234 $ 16,392,596 $ 29,692,374 $ 29,290,594 99 City of San Rafael Combining Statement of Revenues, Expenditures and Changes in Fund Balances Capital Projects Funds For the year ended June 30, 2001 (With comparative totals for the year ended June 30, 2000) Capital Bedroom Assessment Open Space Improvement Tax Districts REVENUES: Taxes and special assessments $ $ $ 23,975 $ Uses of money and property 47,784 371,591 5,Q30 Intergovernmental 348,988 Charges for current services Other revenues 2,625,895 6,020 Total revenues 47,784 3,346,474 35,025 EXPENDITURES: Current: Public works 144,820 Community development/ redevelopment Capital outlay 14,332 Capital improvement/ special projects 1,162,483 Total expenditures 1,321,635 REVENUES OVER (UNDER) EXPENDITURES 47,784 2,024,839 35,025 OTHER FINANCING SOURCES (USES): Operating transfers in 349,000 Operating transfers out (56,900) Total other financing sources (uses) 349,000 (56,900) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 47,784 2,373,839 35,025 (56,900) FUND BALANCES: Beginning of year 552,391 3,312,030 94,128 280,574 Residual equity transfers out End of year $ 600,175 $ 5,685,869 $ 129,153 $ 223,674 100 Park Capital Projects $ 4,768 488 5,256 5,256 5,256 10,773 $ 16,029 1985 Capital Project and Administration $ 125,893 100,127 226,020 944,984 6,068 951,052 $ Low and Moderate Income Housin_g_ 945,608 218,030 200,000 67,643 1,431,281 154,311 1,261,436 1,415,747 1992 Bonds 1995 Bonds Capital Capital Project Project $ $ 495,000 983,325 1,478,325 30,560 1,576,928 30,560 1,576,928 (725,032) 15,534 (30,560) (98,603) 901,456 220,000 (220,000) 901,456 220,000 (220,000) 176,424 15,534 189,440 (318,603) 14,848 3,293,206 354,397 2,342,926 $ 1999 Bonds Capital Project $ 1,073,240 793,145 1,866,385 338,867 2,806,561 3,145,428 Totals 2001 969,583 1,720,443 1,043,988 125,893 4,576,643 8,436,550 144,820 1,468,722 20,400 6,807,408 8,441,350 $ (1,279,043) (4,800) (901,456) (901,456) (2,180,499) 17,951,849 1,470,456 (1,178,356) 292,100 287,300 28,207,122 2000 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 (2,267,448) 31,767,822 (1,293,252) $ 191,272 $ 3,308,740 $ 543,837 $ 2,024,323 $ 15,771 ,350 $ 28,494,422 $ 28,207,122 101 lOT 'J[UVzq +.!"ZlillvUOHU"lU! "Svd S!lf.L 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. 103 City of San Rafael Combining Balance Sheet Internal Service Funds June 30, 2001 (With comparative totals for 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 $ 1,280,870 $ $ 1,280,870 $ $ 47,317 $ 47,317 1,233,553 1,233,553 $ 1,280,870 $ 104 Liability Workers' Dental Insurance Compensation Insurance 1,161,128 $ 3,139,538 $ 341692 1,161,128 $ 3,139,538 $ ,34,692 19,123 $ 7,671 $ 1,728 184,703 2,569,323 203,826 2,576,994 1,728 957,302 562,544 32,964 957,302 562,544 32,964 1,161,128 $ 3,139,538 $ 34,692 $ $ $ $ Radio Replacement 1,796,520 1,796,520 1,796,520 1,796,520 1,796,520 $ $ $ $ Totals 2001 7,412,748 7,412,748 75,839 2,754,026 2,829,865 4,582,883 4,582,883 7,412,748 $ $ $ $ 2000 5,660,428 5,660,428 8,076 2,398,463 2,406,539 3,253,889 3,253,889 5,660,428 105 City of San Rafael Combining Statement of Revenues, Expenses and Changes in Retained Earnings Internal Service Funds For the year ended June 30, 2001 (With comparative totals for the year ended June 30, 2000) Building Liability Workers' Maintenance Insurance Compensation OPERATING REVENUES: Charges for current services $ 563,257 $ 810,744 $ 1,123,705 Refunds 70,513 26,877 Total operating revenues 563,257 881,257 1,150,582 OPERATING EXPENSES: Contract services 28,201 Insurance premiums and claims 737,241 1,574,291 Capital outlay 4,434 Capital improvement projects 226,515 Total operating expenses 259,150 737,241 1,574,291 OPERATING INCOME 304,107 144,016 (423,709) NONOPERATING REVENUES: Operating transfers in 450,000 400,000 Operating transfers out (90,000) Investment income 49,145 89,309 127,841 Total nonoperating revenues 499,145 (691) 527,841 NET INCOME 803,252 143,325 104,132 RETAINED EARNINGS: Beginning of year 430,301 813,977 458,412 Residual equity transfers in End of year $ 1,233,553 $ 957,302 $ 562,544 106 Dental Insurance $ 337,912 (1,830) 336,082 331,570 331,570 4,512 909 909 5,421 27,543 $ 32,964 $ $ Radio Replacement 269,159 269,159 87,705 87,705 181,454 91,410 91,410 -- 272,864 1,523,656 1,796,520 $ $ Totals 2001 3,104,777 95,560 3,200,337 115,906 2,643,102 4,434 226,515 2,989,957 210,380 850,000 (90,000) 358,614 U18,614 1,328,994 3,253,889 4,582,883 $ $ 2000 3,398,451 73,013 3,471,464 94,258 2,555,622 158,112 2,807,992 663,472 487,269 188,671 675,940 1,339,412 621,225 1,293,252 3,253,889 107 City of San Rafael Combining Statement of Cash Flows Internal Service Funds For the year ended June 30, 2001 (With comparative totals for the year ended June 30, 2000) Building Maintenance CASH FLOWS FROM OPERATING ACTIVITIES: Operating income (loss) $ 304,107 Change in current assets and liabilities: Accounts payable 47,317 Insurance claims payable Net cash provided by operating activities 351,424 CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES: Operating transfers in 450,000 Operating transfers out Residential equity transfers from other funds Net cash provided by noncapital 450,000 financing activities CASH FLOWS FROM INVESTING ACTIVITIES: Investment income 49,145 Net cash provided by investing activities 49,145 Net increase in cash and investments 850,569 CASH AND INVESTMENTS: Beginning of year 430,301 End of year $ 1,280,870 108 Liability Workers' Dental Insurance Compensation Insurance $ 144,016 $ (423,709) $ 4,512 12,329 6,389 1,728 (101,646) 457,209 54,699 39,889 6,240 400,000 (90,000) (90,000) 400,000 89,309 127,841 909 89,309 127,841 909 54,008 567,730 7,149 1,107,120 2,571,808 27,543 $ 1,161,128 $ 3,139,538 $ 34,692 $ $ Radio Replacement Totals 181,454 $ 181,454 91,410 91,410 272,864 2001 210,380 67,763 355,563 633,706 850,000 (90,000) 760,000 358,614 358,614 1,752,320 1,523,656 5,660,428 1,796,520 $ 7,412,748 $ $ 2000 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 5,660,428 109 on EXPENDABLE TRUST 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. 111 City of San Rafael Combining Balance Sheet Expendable Trust Funds June 30, 2001 (With comparative totals for June 30, 2000) ASSETS Cash and investments Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Total liabilities Fund Balances: Reserved: Petty cash Unreserved, designated for: Library / endowments Park projects Total fund balances Total liabilities and fund balances Expendable Trust Funds Business Library Recreation Improvement Fiduciary Fiduciary $ 7,573 $ 429,575 $ 32,398 $ 7,573 $ 429,575 $ 32,398 $ $ 4,593 $ 4,593 3,000 424,982 4,573 32,398 7,573 424,982 32,398 $ 7,573 $ 429,575 $ 32,398 112 Totals 2001 2000 $ 469,546 $ 450,864 $ 469,546 $ 450,864 $ 4,593 $ 116 4,593 116 3,000 3,000 424,982 406,916 36,971 40,832 464,953 450,748 $ 469,546 $ 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, 2001 (With comparative totals for the year ended June 30, 2000) Expendable Trust Funds Totals Business Library Recreation Improvement Fiduciary Fiduciary 2001 REVENUES: Uses of money and property $ 921 $ 22,894 $ 1,797 $ 25,612 $ Intergovernmental 35,000 35,000 Other revenues 16,761 1,000 17,761 Total revenues 52,682 23,894 1,797 78,373 EXPENDITURES: Current: General government 53,975 53,975 Culture and recreation 5,828 4,365 10,193 Total expenditures 53,975 5,828 4,365 64,168 REVENUES OVER (UNDER) EXPENDITURES (1,293) 18,066 (2,568) 14,205 FUND BALANCES: Beginning of year 8,866 406,916 34,966 450,748 End of year $ 7,573 $ 424,982 $ 32,398 $ 464,953 $ 113 2000 29,044 35,000 22,117 86,161 47,764 33,094 80,858 5,303 445,445 450,748 City of San Rafael Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual -Expendable Trust Funds (With Budgets) For the year ended June 30, 2001 Business Improvement Budget Actual REVENUES: Uses of money and property $ $ 921 Intergovernmental 35,000 35,000 Other revenues 17,000 16,761 Total revenues 52,000 52,682 EXPENDITURES: Current: General government 52,000 53,975 Culture and recreation Total expenditures 52,000 53,975 REVENUES OVER (UNDER) EXPENDITURES $ (1,293) FUND BALANCES: Beginning of year 8,866 End of year $ 7,573 114 Variance Favorable (Unfavorable) $ 921 (239) 682 (1,975) (1,975) $ (1,293) Budget $ 22,210 22,210 30,960 30,960 $ (8,750) Library Fiduciary Variance Favorable Actual (Unfavorable) Budget $ 22,894 $ 1,000 23,894 5,828 5,828 18,066 $ 406,916 $ 424,982 684 1,000 1,684 25,132 25,132 $ 22,210 35,000 17,000 74,210 52,000 30,960 82,960 26,816 $ (8,750) 115 $ $ Totals Actual 23,815 35,000 17,761 76,576 53,975 5,828 59,803 Variance Favorable (Unfavorable) $ 1,605 761 2,366 (1,975) 25,132 23,157 16,773 $ 25,523 415,782 432,555