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1998-1999 General Purpose Financial Statementsc. G. UHLENBERG & co. LLP CERTIFIED PUBLIC ACCOUNTANTS ROBERT E. BARSANTI, C.P.A . PEGG Y H. CHEN , C.P.A. JEFFRE Y J. IRA , C.P.A . KATHERINE C. WONG, C.P.A . March 7, 2000 Rod Gould, City Manager City of San Rafael 1400 Fifth Avenue San Rafael, California 94901 Dear Mr. Gould: We would like to express our appreciation to your staff for their cooperation and assistance during the course of our engagement. During that time we discussed various aspects of operations and internal controls with your staff. We were extremely pleased with the eagemess of the City's staff to discuss and correct any potential problems, We look forward to working together with the City in the years to come. In planning and performing our audit of the general purpose financial statements for the fiscal year ended June 30, 1999, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing an opinion on the general purpose financial statements and not to provide assurance on the intemal control structure. Our consideration of the internal control structure would not necessarily disclose all matters that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A description of the responsibility of the management for establishing and maintaining the internal control structure, and of the objective of inherent limitations in such a structure, is set forth in the attached Appendix, and should be read in conjunction with this report. A material weakness is a condition in which the design or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material, in relation to the general purpose financial statements being audited, may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above, The following comments present our findings with suggested solutions for your consideration and possible implementation. 647 Veterans Boulevard, Redwood City, CA 94063 Phone (650) 365-2323 • (408) 733-9944 • (510) 353-0330 Fax (650) 365-8394 ~ile conducting the audit, we discussed various aspects of operations and internal controls with management. We feel very positive about the improvements that have been implemented in the past year, especially in light of the budget constraints facing the City. This letter is intended solely for the information and use of management and the City Council and should not be used for any other purpose. This restriction is not intended to limit distribution of this letter which is a matter of public record. We would be pleased to discuss these matters in greater detail at your convenience. Again, we would like to express our appreciation for the courtesy and assistance extended to us during the conduct of our audit by the staff ofthe City. Very truly yours, C. G. UHLENBERG & CO. LLP By Katherine C. Wong Encl. cc: Ken Nordhoff, Assistant City Manager 2 CITY OF SAN RAFAEL, CALIFORNIA CURRENT YEAR FINDINGS AND RECOMMENDATIONS PURCHASING Finding -During our review of the City's internal controls, we noted that the City does not utilize centralized purchasing. Although no breakdown in the purchasing controls has come to our attention, segregating purchasing from cash disbursements and receiving is an important aspect of maintaining good internal controls. Recommendation -We recommend the city create the position of an independent purchasing agent. The addition of this position would improve internal controls and additionally, help in reducing the cost of materials and supplies purchased, controlling the quantity and frequency purchases made and monitoring departmental budgets. Removing the purchasing duties from department managers would also allow them to devote more of their time to their respective departments. MAJOR BREAKTHROUGH IN REPORTING MODEL A major breakthrough was made by the Governmental Accounting Standards Board (GASB), at its July, 1998, meeting . The board tentatively agreed to a new reporting model. Full details of the model as well as the appropriate level of detail and location of the information will be discussed at a future meeting. The board is also considering modifying the rules of liability and expenditure recognition in governmental funds as part of the final statement. The board has scheduled public hearings over the next few months to discuss these issues. We will continue to keep you updated on the board's progress and of course we are available to answer any questions regarding this comprehensive and momentous statement. Although this change does not effect the City directly it will impact the information and accounting of many entities that are integral to your operations. INTERNAL CONTROLS As a result of new disclosure requirements (SAS 82), we need to remind management of their responsibility to maintain adequate internal controls. Even with strong internal control procedures in place, employees can learn to manipulate the accounting system to their benefit. However, a properly executed system of internal controls can help you reduce these risks. 3 CITY OF SAN RAFAEL, CALIFORNIA STATUS OF PRIOR YEAR'S FINDINGS AND RECOMMENDATIONS FIXED ASSETS Finding -The City does not have a written policies manual with established procedures for differentiating between capitalizable additions and replacement and maintenance expenditures. A procedures manual should be in place to guide and assist in the area of maintaining fixed assets and determining depreciation on fixed assets. Recommendation -We recommend that the City establish a written procedures manual as a guide and to assist in the area of maintaining fixed assets. Status -Not implemented; repeat recommendation. CHILD DEVELOPMENT PROGRAM Finding -During our review of the Child Development Program grant revenues, we noted that revenues for Renovation and Repair and the One-Time-Only Instructional Material Grant were recorded in the Latchkey and Preschool Funds. Adjustments were required to allocate the grant revenues to the appropriate funds. Recommendation -We recommend that cash receipts for grant revenues be coded correctly and distributed to the appropriate funds. Status -Not implemented; repeat recommendation. ACCOUNTING POLICIES AND PROCEDURES MANUAL Finding -The City does not have an accounting manual which outlines the current accounting policies and procedures. Lack of such a manual can result in inconsistent treatment of accounting transactions, increased supervisor time responding to staff inquiries and difficult transition periods in the event of personnel turnover. Additionally, it is more difficult to assure compliance with legal and other requirements. Recommendation - A comprehensive accounting policies and procedures manual should be prepared which would include, but not be limited to: • Descriptions of the functions of each job within the Finance Department. • The nature and source of entries to each general ledger account. • Descriptions of standard, recurring and closing journal entries, especially for complicated transactions. • Approved procedures for journal entries and invoices. • Monthly and annual closing procedures. • Financial reporting, including compliance requirements. 4 CITY OF SAN RAFAEL, CALIFORNIA STATUS OF PRIOR YEAR'S FINDINGS AND RECOMMENDATIONS The City acknowledges that there is a need to have a policy and procedures manual. However, this is something that the City is going to work on as time permits. Status -The City is in the process of preparing an accounting policies and procedures manual. The City has completed the business license procedures manual and the city-wide collections procedures. 5 MANAGEMENT'S RESPONSIBILITY FOR, AND THE OBJECTIVES AND LIMITATIONS, OF THE INTERNAL CONTROL STRUCTURE APPENDIX The following comments concerning management's responsibility for the internal control structure and the objectives of, and the inherent limitations in, the internal control structure are adapted from the Statements on Auditing Standards of the American Institute of Certified Public Accountants. Management's Responsibility Management is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of the internal control structure policies and procedures. Objectives The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Limitations Because of inherent limitations in any internal control structure, errors or irregularities nevertheless may occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 6 CITY OF SAN RAFAEL, CALIFORNIA GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30,1999 * * * CITY OF SAN RAFAEL, CALIFORNIA GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 T ABLE OF CONTENTS (Concluded) Independent Auditor's Report .................................................................................... . General Purpose Financial Statements: Combined Balance Sheet -All Fund Types and Account Groups and Discretely Presented Component Units ......................................................... . Combined Statement of Revenues, Expenditures and Changes in Fund Balances -All Governmental Fund Types and Expendable Trust Funds ............................................................. .. Combined Statement of Revenues , Expenditures and Changes in Fund Balances -Budget and Actual (Budget Basis) -General, Special Revenue and Debt Service Funds ...................................................... . Combined Statement of Revenues, Expenses and Changes in Fund Equity -Proprietary Fund Type and Discretely Presented Component Unit ........................................................... . Combined Statement of Cash Flows -Proprietary Fund Type and Discretely Presented Component Unit ........................................................... . Notes To General Purpose Financial Statements ....................................................... . Supplementary Infonnation: Special Revenue Funds: Combining Balance Sheet.. ............................................................................ . Combining Statement of Revenues, Expenditures and Changes in Fund Balances ....................................................................... . Recreation Revolving Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ...... . Baypoint Lagoons Assessment District Fund -Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual .......................................................... . Parking Services Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ...... . Gas Tax Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ........................... . Childcare Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ............. . Equipment Replacement Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ...... . Street Maintenance & Cleaning Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) PAGE NO. 2-5 6-7 8 -10 11 12 14 -50 51 -54 55 -58 59 60 61 62 63 64 CITY OF SAN RAFAEL, CALIFORNIA GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 TABLE OF CONTENTS (Concluded) PAGE NO. and Actual ........................................................................................... ..... 65 Sewer Maintenance Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ................................................................................................ 66 Household Hazmat Facility Fund -Statement of Revenues. Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual....... 67 Loch Lomond Assessment District Fund -Statement of Revenues. Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ......... ....................................................................................... 68 Library Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual............................ 69 Public Safety Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual.............. 70 Stonnwater Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual .............. 71 Traffic and Housing Mitigation Fund -Statement of Revenues. Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ................................................................................................ 72 Development Services Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual....... 73 Grants Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual............................ 74 Parkland Dedication Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual.............. 75 Emergency Medical Services Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ................................................................................................ 76 Debt Service Funds: Combining Balance Sheet.. ............................................................................ . Combining Statement of Revenues, Expenditures and Changes in Fund Balances ....................................................................... . Peacock Gap Assessment District Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ............................................................................................... . 1915 Act Bonds Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ............. . Mariposa Assessment District Fund -Statement of Revenues , 77 -78 79 -80 81 82 CITY OF SAN RAFAEL, CALIFORNIA GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 TABLE OF CONTENTS (Concluded) Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and A.ctual ............................................................................................... . 1997 Financing Authority Revenue Bonds Fund -Statement of Revenues , Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ............................................................................................... . 1992 Agency Refunding Bonds Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (GAAP Basis) and Actual ............................................................................................... . 1995 Agency Bonds Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual .......... Capital Projects Funds : Combining Balance Sheet.. ............................................................................ . Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................... .. Internal Service Funds : PAGE NO . 83 8-+ 85 86 87 -88 89 -90 Combining Balance Sheet. ............ ....................... ................................ ........... 91 Combining Statement of Revenues, Expenses and Changes in Retained Earnings............................ ................ ........ ....... 92 Combining Statement of Cash Flows ............................................................. 93 Trust and Agency Funds: Combining Balance Sheet............................................................................... 94 Expendable Trust Funds: Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................................................................................... 95 Business Improvement Fund: Statement of Revenues , Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual ................................................................. 96 Library Fiduciary Improvement Fund: Statement of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual........................................................... 97 THIS PAGE IS LEFT BLANK INTENTIONALLY c. G. UHLENBERG & co. LLP CERTIFIED PUBLIC ACCOUNTANTS ROBEi'1T E. BARSANT I. C.PA PEGGY H. CHEN. C PA JEFFREY J IRA. C PA KATHERINE C WONG . C PA INDEPE:"lDE:"lT AUDITOR'S REPORT Honorable Mayor and Members of the City Council of the City of San Rafael San Rafael. California We have audited the accompanying general purpose financial statements of the City of San Rafael. California (the City). as of and for the fiscal year ended June 30. 1999. 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 statement of the San Rafael Sanitation District, a discretely presented component unit. which statements reflect total assets of $24.641,434 as of June 30, 1999, and total revenues of $4.711,879 for the year then ended. 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 San Rafael Sanitation District. is based on the report of the other auditors. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards. issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget Circular A-133. Audits of State and Local Governments and Non-Profit Organizations. 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 financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion. the general purpose financial statements referred to above present fairly, in all material respects. the financial position of the City of San Rafael, California, at June 30. 1999, and the results of its operations and the cash flows of its proprietary fund types for the fiscal year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated September 23. 1999 on our consideration of the City of San Rafael's internal control structure and a report on September 23. 1999 on its compliance with laws and regulations. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying combining and individual fund and account group statements and schedules listed in the table of contents under "Supplementary Information" are presented for purposes of additional analysis and are a required part of the general purpose financial statements of the City of San Rafael. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and. in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. The financial information listed in the accompanying table of contents under "Statistical Section" is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the City. Such information has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements. and. accordingly, we express no opinion on such information. C.q. ~ ~. September 23. 1999 Redwood City. California 647 Veterans Boulevard. Redwood City, CA 94063 Phone (650) 365-2323 • (408) 733-9944 • (510) 353-0330 Fa.."X (650) 365-8394 CITY OF SAN RAFAEL, CALIFORNIA COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS JUNE 30, 1999 GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS ASSETS AND OTHER DEBITS Assets : Cash and investments $ 4,510,445 $ 17,536,496 $1,039,253 $ 7,512,911 Cash with fiscal agent 3,861,325 1,058,375 22,614,103 Restricted cash Accounts receivable 528,894 311 ,137 424,886 Taxes receivable 2,906,755 2,788 3,397 452,067 Grants receivable 249,956 Interest receivable 474,564 49,238 Assessment receivable 938,7'23 Loans receivable 764,685 100,000 325,536 Due from other funds 25,000 43,654 752 ,037 Prepaid expenses Other current assets General fixed assets Component unit fixed assets -net COP issuance costs -net Other Debits: Amount available in debt service funds Amount to be provided for retirement of: General long-term debt Vacation and sick leave TOTAL ASSETS AND OTHER DEBITS $ 13.071.668 $ 18.244.031 $3.039 .748 $32.130.778 See accompanying notes to general purpose financial statements . 2 PROPRIETARY FUND TYPES INTERNAL SERVICE $2,799,452 $ 2.799.452 FIDUCIARY FUND TYPES EXPENDABLE TRUST AND AGENCY $ 445,651 $ 445.651 ACCOUNT GROUPS GENERAL GENERAL $ FIXED LONG- ASSETS TERNIDEBT $ 37,719,631 24,712,196 5,386,474 3.507,645 $37.719.631 $33.606.315 3 PRIMARY GOVERNMENT TOTALS (MEMORANDUM ONLY) $ 33,844,208 27,533,803 1,264,917 3,365,007 249,956 523,802 938,723 1,190,221 820,691 37,719,631 24,712,196 5,386,474 3,507,645 $ 141.057.274 REPORTI~G ENTITY TOTALS COMPONENT (MEMORANDL1M UNIT ONLY) $ 1,731,457 413,217 1,405 11,237 8,723 22,426,738 48,657 $ 24.6'+ 1.434 $ 35,575.665 27,533.803 .+ 13.217 1.264.917 3,365.007 249,956 525,207 938.723 1,190.221 820.691 11.237 8.723 37,719,631 22,426,738 48.657 24,712.196 5,386'-+74 3.507.645 $ 165.698.708 (Continued) CITY OF SAN RAFAEL. CALIFORNIA COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT JUNE 30, 1999 PROPRIETARY GOVERNMENTAL FUND TYPES FUND TYPES SPECIAL DEBT CAPITAL INTERNAL GENERAL REVENUE SERVICE PROJECTS SERVICE LIABILITIES AND FUND EQUITY Liabilities: Accounts payable $ 1,132,785 $ 817,651 $ 2,932 $ 149,390 $ 20,102 Connection fees payable Developer bonds payable 30,100 Insurance claims payable 2,158,125 Interest payable Due to other funds 649,145 171,546 Deferred revenue 11,325 21,726 938,723 42,020 Capital leases Compensated absences Certificates of participation Notes payable 3,850,000 Special assessment debt Bonds payable Total Liabilities 5,024.210 1,488.522 941,655 362.956 2.178.227 Fund Equity and Other Credits: Investment in general fixed assets Contributed capital Retained earnings: Reserved Unreserved 621,225 Total Retained Earnings 621.225 Fund Balances: Reserved 3,534,95 I 1,332,513 1,188,779 1,639,265 Unreserved: Designated 11,369,932 13,701 30,150,584 Undesignated 4.512.507 4.053.064 895.613 (22.027) Total Fund Balances 8.047,458 16.755.509 2.098.093 31.767.822 Total Fund Equity and other credits 8,047,458 16,755.509 2.098.093 31,767.822 621.225 TOTAL LIABILITIES AND FUND EQUITY $ 13.071.668 $ 18.24 ... 1-.03 I $3.039.748 $ 32.130.778 $ 2.799.-+52 See accompanying notes to general purpose financial statements . 4 FIDUCIARY FUND TYPES EXPENDABLE TRUST AND AGENCY $ 206 206 3,000 442,445 445.445 445.445 $ 445.651 ACCOUNT GROUPS GENERAL GENERAL FIXED LONG- ASSETS TE~lDEBT $ $ 79,670 3,507,645 169,000 1,530,000 28,320.000 33.606.315 37,719,631 37.719.631 $37.719.631 $ 33.606.315 5 PRIMARY GOVERt"TMENT TOTALS REPORTING E0iTITY TOTALS (MEMORANDUM COMPONENT (MEMORANDlM ONLY) UNIT ONLY) $ 2,123,066 $ 30,757 $ 2, I 53,823 21,000 21,000 30,100 30,100 2,158,125 2.158,125 114,652 114,652 820.691 820,691 1,013,794 1,013,794 79,670 79,670 3,507,645 3,507,645 4,062,072 4,062,072 4,019,000 4,019,000 1,530,000 1,530,000 28.320,000 28,320.000 43.602.091 4.228.481 47.830,572 37,719,631 37,719,631 7.748.080 7.748.080 89,968 89,968 621.225 12.574,905 13.196.130 621.225 12.664.873 13.286.098 7,698,508 7.698,508 41,976,662 41.976,662 9.439.157 9.439.157 59.114.327 59.114.327 97.455.183 20.412.953 117.868.136 $ 141.057.274 $ 24.641.434 $ 165.698.708 (Cone I uded) CITY OF SAN RAFAEL, CALIFORNIA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 GOVERNMENTAL FUND TYPES SPECIAL DEBT GENERAL REVENUE SERVICE REVENUES: Taxes and special assessments $ ::!6,On,649 $ 1,659,800 $3,009.657 Licenses and permits 814,828 131,560 Fines and forfeitures 1,::!64,465 39,481 Uses of money and property 266,930 739,429 59,045 Intergovernmental 3,955,126 2,167,510 Charges for current services 1,324,108 9,770,440 Other revenues 280.306 307.664 Total Revenues 33.978.412 14.815.884 3.068.70::! EXPENDITURES: Current: General government 5,955,323 129,178 Public safety 16,979,766 3,958,298 Public works and parks 4,244,539 2,718,418 Community development 1,708,135 577,972 Culture and recreation 1,324,233 4,114,813 Capital Outlay 5,298,815 Debt Service: Principal retirement 1,323,000 Interest and fiscal charges 1,874.003 Total Expenditures 30.211.996 16.797.494 3,197,003 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 3.766.416 (1.981.610) (128.301) OTHER FINANCING SOURCES (USES): Operating transfers -In 1,160,856 3,422,282 7,583 Operating transfers -Out (3,542,061 ) (960,945) (8,700) Proceed from sale of land Cost of land sold Proceeds from issuance of bonds Bond issuance costs Total Other Financing Sources (Uses) (2.381.205) 2.461.337 ( 1.117) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 1,385,211 479,727 (129,418) FUND BALANCES -JULY I, 1998 6,662,247 16,892,273 2,227,511 PRIOR PERIOD ADJUSTMENTS (616.491 ) FUND BALANCES -JUNE 30, 1999 $ 8.047.458 $ 16.755.509 $2,098.093 See accompanying notes to general purpose financial statements. 6 CAPITAL PROJECTS $ 465,460 371,121 114,617 487 370.753 1.322.438 1,202,172 1,683,098 2.885.270 ( 1.562.832) 128,568 (207,583) 2,052,607 (2,004,514) 23,504,004 (889.90 I) 22.583.181 21,020,349 10,130,982 616.491 $31.767.822 FIDUCIARY FUND TYPES EXPENDABLE TRUST AND AGENCY $ 22,550 35,000 15.242 72.792 51,747 3,133 54.880 17.912 17,912 427,533 $ 445.445 PRIMARY GOYER.t"\lMENT TOTALS (MEMORANDUM ONLY) $ 31.207,566 946,388 1,303,946 1,459,075 6,272,253 11,095,035 973.965 53.258.228 6,084,501 20,938,064 6,962,957 3,540,026 5,442,179 6,981,913 1,323,000 1.874.003 53.146.643 111,585 4,719,289 (4,719,289) 2,052,607 (2,004,514 ) 23,504,004 (889.901) 22.662.196 22,773,781 36,3 4 0,546 $ 59.114.327 7 CITY OF SAN RAFAEL, CALIFORNIA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET (GAAP BASIS) AND ACTUAL GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 3D, 1999 REVENUES: Taxes and special assessments Licenses and perm its Fines and forfeitures Uses of money and property Intergovernmental Charges for current services Other revenues Total Revenues EXPENDITURES: Current: General government Public safety Public works and parks Community development Culture and recreation Capital Outlay Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Proceeds from issuance of bonds Bond issuance costs Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES -JULY 1, 1998 PRIOR PERIOD ADJUSTMENTS FUND BALANCES -JUNE 30, 1999 BUDGET $ 24,881 ,813 622,480 987,809 328,325 3,739,497 1,454,032 137.713 32.151.669 5,468,876 16,672,178 4,408,039 2,094,524 1,416,054 30,059.671 2.091,998 1,100,856 (4,028,672) (2.927.816) $ (835.8\8) GENERAL FUND VARIANCE FAVORABLE ACTUAL (UNFAVORABLE) $ 26,072,649 814,828 1,264,465 266,930 3,955,126 1,324,108 280.306 33.978.412 5,955,323 16,979,766 4,244,539 1,708,135 1,324,233 30.211.996 3.766.416 1,160,856 (3,542,061 ) (2.381.205) 1,385,211 6,662,247 $ 8.047.458 $1,190,836 192,348 276,656 (61,395) 215,629 ( 129,924) 142.593 1.826.743 (486.447) (307,588) 163,500 386,389 91,821 ( 152.325) 1.674.418 60,000 486,611 546.611 $2.221.029 See accompanying notes to general purpose financial statements. 8 SPECIAL REVENUE FUNDS BUDGET $ 1,662,710 116,040 1,600 509,665 2,846,069 9,611,142 496.580 15.243.806 146,071 5,105,164 3,504,945 120,000 4,658,026 12,176,359 25.710.565 (10A66.759) 3,624,772 (960,945) 2.663.827 $ (7.802.932) ACTUAL $ 1,659,800 131,560 39,481 739,429 2,167,510 9,770,440 307.664 14.815.884 129,178 3,958,298 2,718,418 577,972 4,114,813 5,298,815 16.797.494 ( 1.981.610) 3,422,282 (960,945) 2.461.337 479,727 16 ,892,273 (616.491) $16.755.509 VARIANCE FAVORABLE (UNF A VORABLE) $ (2,910) 15,520 37,881 229,764 (678,559) 159,298 (188.916) (427.922) 16,893 1,146,866 786,527 (457,972) 543,213 6,877,544 8.913.071 8.485.149 (202,490) (202.490) $ 8.282.659 DEBT SERVICE FUNDS VARIANCE FAVORABLE BUDGET ACTUAL (UNFA VORABLE) $3,000,255 $ 3,009,657 $ 9.402 30,000 59,045 29,045 3.030.255 3.068.702 38.447 1,323,000 1,323,000 1.877,136 1.874.003 3.133 3,200.136 3.197.003 3.133 (169.881) (128.301) 41,580 7,583 7,583 (8,700) (8,700) (8.700) ( 1.117) 7.583 $ (178.581) (129,418) $ 49.163 2,227,511 $2.098.093 (Continued) 9 CITY OF SAN RAFAEL, CALIFORNIA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET (GAAP BASIS) AND ACTUAL GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 REVENUES: Taxes and special assessments Licenses and permits Fines and forfeitures Uses of money and property Intergovernmental Charges for current services Other revenues Total Revenues EXPENDITURES: Current: General government Public safety Public works and parks Community development Culture and recreation Capital Outlay Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Proceeds from issuance of bonds Bond issuance costs Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES -JULY 1, 1998 FUND BALANCES -JUNE 30,1999 to EXPENDABLE TRUST FUNDS VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) $ 12,580 35,000 17,000 64,580 58,000 30,000 88,000 (23.420) $ (23.420) $ 22,550 35,000 15.242 72.792 51,747 3,133 54,880 17.912 17,912 427.533 $445.445 $ 9,970 (1.758) 8.212 6,253 26,867 33.120 41,332 $ 41.332 (Concluded) CITY OF SAN RAFAEL, CALIFORNIA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS -PROPRIETARY FUND TYPE AND DISCRETEL Y PRESENTED COMPONENT UNIT FOR THE FISCAL YEAR ENDED JUNE 30. 1999 OPERATING REVENUES: Charges for current services Refunds Sewer charges Connection fees Total Operating Revenues OPERA TING EXPENSES Insurance premiums and claims Sewage collection Sewage treatment Depreciation and amortization General and administrative Total Operating Expenses Operating income NON-OPERA TING REVENUES (EXPENSES): Property taxes Special assessments -Bayside Acres Aid from governmental agencies Investment income Interest expense Other non-operating revenues Total Non-operating Revenues Net Income Add: depreciation expense on assets acquired by contributed capital Increase in retained earnings Retained earnings -July I, 1998 Retained earnings -June 30, 1999 Contributed capital -July l. 1998 Less: depreciation expense accumulated Contributed capital -June 30, 1999 Total Retained Earnings PRIMARY GOVERNMENT INTERNAL SERVICE $ 1,948,404 220,242 2.168.646 1,893,507 1.893.507 275.139 83,650 1.803 85.453 360;592 360,592 260,633 621.225 $ 621.225 COMPONENT UNIT ENTERPRISE $ 4,607,090 104.789 4.711.879 1.567, I 90 1,85 I ,800 785,937 182.713 4.387.640 324.239 427,380 (.+91) 6,996 59,61 I (284,924) 208.572 532,811 286.478 819,289 11,845,58'+ 12.664.873 8.034,558 (286.4 78} 7.748.080 $ 20A12.953 See accompanying notes to general purpose financial statements. I I TOTALS (M E M 0 R.-\;\ D L' \ I ONLY) $ 1,9'+8,40'+ 220,2'+2 4,607.090 104.789 6.880.525 1,893,507 1,567, 190 1.85 1.800 785,937 182.713 6.281.1.+7 599.378 427,380 (49 I) 6,996 143,261 (284,924) 1.803 294.025 893,403 286.478 I, I 79,88 I 12. I 06,217 13.286.098 8,03.+.558 (286.-+ 7 8) 7.748.080 $ 2. 1.03'+. I 78 CITY OF SAN RAFAEL, CALIFORNIA COMBINED STATEMENT OF CASH FLOWS - PROPRIETARY FUND TYPE AND DISCRETEL Y PRESENTED COMPONENT UNIT FOR THE FISCAL YEAR ENDED JUNE 30, 1999 PRIMARY GOVERNMENT COMPONENT TOTALS CASH FLOWS FROM OPERATING ACTIVITIES: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization Changes in current assets and liabilities: (Increase) decrease in: Prepaid expenses and other current assets Increase (decrease) in: Accounts payable and other current liabilities Increase (decrease) in: Claims payable Net Cash Provided by Operating Activities CASH FLOWS FROM NON CAPITAL FINANCING ACTIVITIES: Property taxes Aid from governmental agencies Non-operating revenues Net Cash Provided by Non Capital Financing Activities CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Cash paid for capital acquisitions Special assessments -Bayside Acres Assessment District Interest received from certificates of participation principal cash Principal payments on certificates of participation Interest paid on certificates of participation Net Cash Used for Capital Financing Activities CASH FLOWS FROM INVESTING ACTIVITIES: Income from investments Net Cash Provided by Investing Activities Net Increase in Cash and Cash Equivalent Cash and Cash Equivalents -July I, 1998 Cash and Cash Equivalents -June 30, 1999 INTERNAL UNIT (MEMORANDUM SERVICE ENTERPRISE ONLY) $ 275,139 6,478 249.384 531,001 1.803 1,803 83.650 83.650 616,454 I. I 82.998 $ 2.799.452 $ 324,239 785,937 (3,952) (28,303 ) L077.92 I 427,380 6,996 434.376 (119,920) (491) 19,484 (200,000) (28 \,\ 65) (582.09 /) 40.395 40.395 970,600 1.174.074 $ 2.144.674 S 599,378 785.937 (3,952) (21,825) 1.608.92' 427,380 6,996 1.803 436.179 (119,920) (491) 19,-l84 (200,000) (281.165) (58'.092) 1'14.045 114.045 1,587,054 3.357.07 1 S 4.944.126 See accompanying notes to general purpose financial statements. 12 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of San Rafael (the City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GAS B) 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 generally accepted accounting principles, these financial statements present the City (the primary government) and its component units. Component units generally are legally separate entities for which a primary government is financially accountable. Financial accountability ordinarily involves meeting both of the following criteria set forth in GASB Statement No. 14; the primary government is accountable for the potential component unit, and the primary government is able to impose its will upon the potential component unit, or there is a possibility that the potential component unit may provide specific financial benefits or impose specific 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. The two entities 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 Department, 1400 Fifth Avenue, San Rafael , California 94915. Blended Component Units: San Rafael Redevelopment Agencv The San Rafael Redevelopment Agency (the 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 of San Rafael (the City). Financial activity 14 CITY OF SAN RAFAEL, CALIFORi"lIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1999 of the Agency commenced in July 1983. Under the Agency's Redevelopment Plan (the Plan), approved in November 1982. the Agency proposes to assist in the development of the property located in the central San Rafael business core and east San Rafael. The Agency receives incremental tax revenues on the developed property due to increases in assessed value. The Agency functions as an independent entity. The City Council serves as the governing board of the San Rafael Redevelopment Agency . The Agency's assets, liabilities, revenues and expenditures (other than those applicable to its fixed assets and long term debt) are blended into the Capital Projects Funds and Debt Service Funds. The Agency's fixed assets are included in the General Fixed Assets Account Group. The Agency 's long-term debts are blended into the General Long-Term Debt Account Group. San Rafael Joint Powers Financing Authoritv The San Rafael Joint Powers Financing Authority (the Financing 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 Financing Authority's assets, liabilities, revenues and expenditures are blended into the Capital Projects Funds and the Debt Service Funds. The Financing Authority's long-term debts are blended into the General Long-Term Debt Account Group. Discretely Presented Component Unit: San Rafael Sanitation District The San Rafael Sanitary District (the District) was formed in 1947 under Section 4700 of the California Health and Safety Code to provide wastewater transmission over the southern two-thirds of the City of San Rafael and adjacent unincorporated areas. The City contracts with the District to maintain the collection systems in the City and unincorporated areas . The District is governed by a three member Board of Directors \vho are appointed to four year terms . The City Council of the City of San Rafael 15 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 appoints two out of the three board members and has the ability to remove the two board members at will. The activities of the District are accounted for in a single enterprise fund. The District's assets, liabilities. revenues, expenses, results of operation and cash flows are discretely presented on the City's general purpose financial statements. Separately issued component unit financial statements can be obtained at Central Marin Sanitation Agency, Finance Department, 1301 Andersen Drive, San Rafael, CA 94901. B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Funds and Account Groups -The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity with its own self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. These funds and accounts are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions or limitations. Government 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 are grouped in the financial statements in this report into categories as follows: Governmental Funds • The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. • Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally or administratively restricted to expenditures for specified purposes. • Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs . • Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. 16 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1999 Proprietarv Funds • Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the cost (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where the governing body has decided that periodic determination of revenues earned , expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. • 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. Fiduciarv Funds • Expendable Trust Funds are accounted for in the same manner as governmental funds . (All trust funds of the City of San Rafael are classified as expendable.) • A2:encv Funds are custodial in nature and do not involve the measurement of the results of operations. They are used to account for monies received by the City of San Rafael as an agent for individuals, other governments and other entities . Account Groups • The General Fixed Assets Account Group is used to maintain control and cost information on capital assets acquired to perform general government functions. • The General Lon2:-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. 17 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 C. MEASUREMENT FOCUS All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e ., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. All proprietary funds use a flow of "economic resources" measurement focus. Thus, all assets and all liabilities associated with the activities of these funds are included on their balance sheets. Their reported fund equity (net total assets) is segregated into components of contributed capital and retained earnings. In addition, the reported fund operating statements of proprietary fund types present increases (revenues) and decreases (expenses) in net total assets. D. BASIS OF ACCOUNTING All governmental funds, expendable trust funds and agency funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become susceptible to accruals, that is, when both are measurable and available. "Measurable" means the amounts of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. All proprietary funds are accounted for using the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and expenses are recognized in the accounting period in which they are incurred. The City applies all F ASB statements that do not conflict with or contradict GASB guidance. Accrued revenues include property taxes, sales taxes, transient occupancy taxes, gas tax, franchise fees, interest and grants. Grant revenues which are received as reimbursement for specific purposes or projects, are recognized based upon when the related expenditures are recorded. Grant revenues which are virtually unrestricted as to purpose and revocable only for failure to meet prescribed compliance requirements are reflected as revenues at the time of receipt or earlier if availability criterion are met. Licenses, fines and penalties and other revenues are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment earnings are accrued since they are measurable and available. Expenditures under the modified accrual basis of accounting are recognized when the related fund liability is incurred, except for principal and interest on general long-term obligations which are recognized \-vhen due. Liabilities expected to be paid after the current period are recorded in the General Long-Term Debt Account Group. 18 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Agency-type funds are custodial in nature (assets equal liabilities) and thus do not involve measurement of results of operations. E . BUDGETS AND BUDGETARY ACCOUNTING The City annually adopts a budget to be effective July 1 for the ensuing fiscal year. From the effective date of the budget, which is adopted at the department level, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by resolution during the fiscal year. The City Manager is authorized to transfer budgeted amounts bet\veen accounts , departments or funds; the Council must approve any increase in the City 's total budget. Several supplemental appropriations were approved during the course of the year. All unencumbered appropriations lapse at year end . The City legally adopts budgets for all its governmental funds, except for the East Francisco boulevard Assessment District and 1997 Reassessment District Debt Service Funds because the City is only required to make Debt Service payments in the event of bondholder default. The City also adopts budgets annually for its internal service funds. The basis of accounting applied to the budget data presented for the General Fund, Special Revenue Funds, and the Debt Service Funds is the modified accrual basis of accounting, and also conforms to generally accepted accounting principles (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, 1999, were as follow's: Original Supplemental Amended Fund Budget Appropriations Budget General Fund $ 28,557,410 $1,502 ,261 $ 30 ,059,671 Special Revenue Funds 17,521,040 6 ,872,391 24,393,431 Debt Service Funds 972 ,529 2 ,227 ,607 3,200.136 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. 19 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1999 F. CASH AND CASH EQUIVALENTS Cash and cash equivalents are considered to be all highly liquid investments. with :J. maturity of ninety days or less from the date of purchase and includes all cash held in the City's cash and investment pool. G. INVESTMENTS Investments are stated at fair market value. The City adopted Governmental Accounting Standards Board Statement No. 31 (GASB 31), which requires that the City's investments be carried at fair market value. Under GASB 3 L the City is required to adjust the carrying value of its investments to reflect their fair market value at each fiscal year end and include the effects of these adjustments in revenue for that fiscal year. GASB 31 applies to all the City's investments, even if they are held to maturity and redeemed at full face value. Since the City's policy is to hold all investments to maturity, the fair market value adjustments required by GASB 31 result in accounting gains or losses (called "recognized" gains or losses) which do not reflect actual sales of the investments (called "realized gains or losses). Thus, recognized gains or losses on an investment purchased at par will now reflect changes in its market value at each succeeding fiscal year end, but these recognized gains or losses will net to zero if the investment is held to maturity. By following the requirements of GASB 31, the City is reporting the amount of resources which would actually have been available if it had been required to liquidate all its investments at any fiscal year end. For further details of recognized gains or losses, refer to Note 2 and 21. H. RESTRICTED CASH AND INVESTMENTS Certain proceeds of various special assessment bonds, as well as certain resources set aside for their repayment, are classified as restricted cash and investments on the balance sheet because their use is limited to debt service by applicable bond covenants. I. GENERAL FIXED ASSETS General Fixed assets are recorded as expenditures of the various governmental funds at the time of purchase and are subsequently capitalized for memorandum purposes in the General Fixed Asset Account Group. Such assets include land. buildings, building improvements, furniture and equipment. 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. 20 CITY OF SAN RAFAEL, CALIFOR.t~IA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1999 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 le:J.se obligations are valued at the present value of future lease payments at the inception of the le:J.se. The collection systems and facilities of the Component Unit 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 Component Unit is as follows: Subsurface lines Sewage collection facilities General plant and administrative facilities 50 years 5 -50 years 3 -15 years J. ACCUMULATED UNPAID V ACA TION AND SICK LEAVE The City accounts for compensated absences (unpaid vacation, sick leave, compensatory time and administrative leave) expected to be currently payable as accrued payroll and benefits liability in the governmental funds to which they relate. The balance of the earned and vested, but unused, compensated absences expected to be paid subsequent to June 30, 1999, is recorded in the General Long-Term Debt Account Group. Sick pay vesting was discontinued for employees hired after 1988. No expenditure was recorded for these amounts. K. APPROPRIATION LIMITATIONS Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from proceeds of taxes. For the fiscal year ended June 30, 1999, based on calculations by City's management, proceeds of taxes did not exceed related appropriations. Further , Section 5 of the Article XIIIB allows the City to designate a portion of fund balance for general contingencies to be used for any purpose. L. PROPERTY TAX LEVY COLLECTION AND MA.:",(IMUM RATES The State of California (State) Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed one percent of its assessed value unless an additional amount for general obligation debt has been 21 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 approved by voters. Assessed value is calculated at 100% of market value as defined by Article XIII A and may be adjusted by no more than two percent per year unless the property is sold , transferred or improved. The State legislature has determined the method of distribution of receipts from a one percent tax levy among the counties, cities , school districts and other districts . Marin County assesses, bills for and collects property taxes as follows: Lien dates Levy dates Due dates Delinquency as of March 1 July 1 Secured 50% on November I 50% on February I December 10 (for November) April 10 (for February) Unsecured March 1 July 1 July 1 August 31 The term "unsecured" refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. Property taxes levied are recorded as revenue when received in the fiscal year of levy because of the adoption of the "alternate method of property tax distribution," known as the Teeter Plan, by the City and the County of Marin. The Teeter Plan authorizes the auditor-controller of the County of Marin to allocate 100% of the secured property taxes billed, but not yet paid. The County of Marin remits tax monies to the City in three installments, as follows: 55% remitted on December 15 40 % remitted on April 15 5% remitted on June 15 M. TAXPAYER-ASSESSED TAXES ACCRUAL In accordance with Governmental Accounting Standards Board (GASB) Statement No. 22, the City recognizes taxpayer-assessed taxes in Governmental Funds as follows: Sales Taxes -The City accrues actual advances from the State Board of Equalization received in July and August of the subsequent fiscal year as these amounts are both measurable and available to the City to meet its financial obligations for the current period . CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1999 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 tuxes for the June 30th 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. N. CLAIMS AND JUDGMENTS Claims and judgments that normally would be liquidated with expendable available resources are accounted for in the Internal Service Funds. O. "TOTALS (MEMORANDUM ONLY)" INFOIUvIA TION Columns on the accompanying combined financial statements captioned "Totals (Memorandum Only)" do not present consolidated financial information. They are not necessary for a fair presentation of the financial statements, but are presented as additional analytical data. Interfund elimination's have not been made in the aggregation of this data. 2. CASH AND INVESTMENTS Cash balances from all funds are combined and invested to the extent possible pursuant to the City Council approved Investment Policy and Guidelines and California Government Code. The earnings from these investments are allocated quarterly to each fund based on an average of quarterly opening and closing balances of cash and investments. Investments are stated at fair market value as required by adopted Governmental Accounting Standards Board Statement No. 31 (GASB 31). The market value information is provided as quoted on June 30 , 1999. CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Authorized Investments: Authorized investments per the City's Investment Policy and Section 53601 of the California Government Code are : Mutual Funds Composed Entirely of U.S. Governmental Securities or other allowable investments Negotiable Certificates of Deposit U.S. Government Securities Bankers Acceptances Commercial Paper Medium-Term Corporate Notes California Local Agency Investment Fund (LAIF) California Arbitrage Management Program (CAMP) Repurchase Agreements Federal Agency Obligations: Federal Intermediate Credit Bank Debentures (FICB) Federal Land Bank Bonds (FLB) Federal Home Loan Bank Notes and Bonds (FHLB) Federal National Mortgage Association Obligations (FNMA) Small Business Administration Obligations (SBA) Government National Mortgage Association Obligations (GNMA) Tennessee Valley Authority Notes (TVA) Student Loan Association Notes (SALLIE MAE) California Local Agencv Investment Fund (LAIF): LAIF is a special fund of the California State Treasury through which local governments may pool investments. Each city or agency may invest up to $20,000,000 in the fund. Investments in LAIF are highly liquid, as deposits can be converted to cash within 24 hours. California Arbitraee Management Proeram (CAMP): CAMP is a non-taxable investment fund under provisions of the California Joint Exercise of Po\vers Act to provide California Public Agencies with comprehensive investment management. accounting and arbitrage rebate calculation services for proceeds of tax- exempt financing. 24 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Cash and investments at June 30, 1999 consisted of the following: Cash: Demand accounts at banks Petty cash Cash with Fiscal Agent Investments: Medium-Tenn Corporate Notes Federal Home Loan Bank Notes Federal National Mortgage Association Obligations Federal Home Loan Mortgage Corporation Federal Fann Credit Bank Certificates of Deposit Investments with Fiscal Agent: Mutual Funds -Federal Securities Surety Bonds Tax and Revenue Anticipation Note First American Treasury Obligation California Local Agency Investment Fund California Arbitrage Management Program Total Cash and Investments The distribution of these monies by funds was as follows: Funds: General Special Revenue Debt Service Capital Projects Internal Service Expendable Trusts TOTAL $ 151,571 6.800 69.785 8,621,431 3,438.324 4,920,024 5,411,502 1,483,610 99 ,000 357,119 631,472 3,861,325 22,614,103 7.536,386 2.175.559 $ 61.378.011 $ 8,371,770 17,536,496 2,097,628 30,127,014 2,799,452 445.651 $ 61.378.011 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1999 Pooled Deposits/Credit Risk All pooled certificates of deposit and bank balances are entirely insured or collateralized. The California Government Code requires California banks and savings and loan associations to secure an agency's deposits by pledging government securities as collateral. The market value of the pledged securities must equal at least 110% of an agency's deposits. California law also allows tinancial institutions to secure local agency deposits by pledging first trust deed mortgage notes leaving a value of 150% ofa local agency's deposits. The City may waive collateral requirements for deposits, which are fully insured up to $100,000 by the Federal Deposit Insurance Corporation (FDIC) or the Federal Savings and Loan Insurance Corporation (FSLIC). Three categories of risk level have been developed by the Government Accounting Standards Board (GASB) Statement No. 3 to disclose the various risk associated with deposits and investments of public money: Cateeorv 1 -insured or collateralized with securities held by the City or its agent in the City's name. CategorY 2 -collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Cateeorv 3 -uncollateralized or collateralized with securities held by the pledging financial institution's trust department or agent but not in the City's name. Credit Risk. Carryine Amount and Market Value of Investments Investments made by the City are classified as to credit risk by three categories, as follows: Cateeorv 1 -insured or registered, or securities held by the City or its agent in the City's name. Cateeorv 2 -uninsured or unregistered, with securities held by the counterparty's trust department or agent in the City's name. Cateeorv 3 -uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the City's name. 16 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Investments in pools managed by other governments or in mutual funds are not required to be categorized pursuant to GASB Statement No.3. The categorization for cash and investments at June 30, 1999, excluding the discretely presented component unit, are as follows: Deposits Pooled Deposits Demand Accounts: Bank balances Deposits in transit • Outstanding checks * Petty cash * Book balance Deposits with Fiscal Agents Cash with Marin County Cash in escrow fund Total Deposits * Not subject to categorization . $ 100,000 $ 100.000 27 CategorY 2 $ 764,454 $ 764.454 $ 3 67,388 2.397 $ 69.785 Carrying Amount $ 864,.t54 58,4.t3 (771,326) 6.800 158,371 67,388 2.397 $ 228 .156 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Categorv Fair ? 3 Value Investments Pooled Investments Medium-Tenn Corporate Notes $ 8,621,431 $ $ 5 8,621,431 Federal Home Loan Bank Notes 3,438,324 3,438.324 Federal National Mortgage Association Obligations 4,920,024 4,920,024 Federal Home Loan Mortgage Corporation 5,411,502 5,411,502 Federal Fann Credit Bank 1,483,610 1,483,610 Certificates of Deposit 99,000 99,000 California Local Agency Investment Fund * 7,536,386 (I) California Arbitrage Management Program * 2.175.559 Total Pooled Investments 23.973.891 33.685.836 Investments with Fiscal Agents: Mutual Funds * 357,119 Surety Bonds * 631,472 Tax and Revenue Anticipation Notes 3,861,325 Treasury Obligations 22.614.103 Total Investments $23.973,891 5 $ $61.149.855 * Not subject to categorization. (I) At June 30,1999, market value of LA IF was $36,801,515,428. The City's proportionate share of the value is 57,536,386. Included in LAIF's investment portfolio are certain derivative securities or similar products in the fonn of structured notes and asset-backed securities totaling $1,876,292,000. LAIF's (and the City's) exposure to risk (credit, market, or legal) is not currently available .. 28 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 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, 1999 amounted to $1,735,002 and $409,597, respectively, totaling $2,144,599. 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 30,1999. Cash and investments at June 30, 1999 consisted of the following: Cash and investments Petty cash TOTAL Unrestricted Cash: Cash Restricted Cash: Certificates of Participation Bayside Acres TOTAL 3. T AXES RECEIVABLE $ 2.144,599 75 $ 2.144.674 $1,731,457 409,597 3.620 $2.144.674 Accounts receivable at June 30, 1999, consisted of the following: Property taxes Sales taxes Transient occupancy taxes Franchise fees Miscellaneous taxes & fees Total General Fund $ 119,973 2,296,200 303,515 150,723 36.344 S 1.906.755 29 Special Revenue Fund $ 421 ?367 S 2.788 Debt Capital Service Projects Fund Fund $ 2,211 $ 1.186 45 7 .067 $ 3 .397 $45'.067 Totals $ 122,605 2,296,200 303,515 150.723 491.964 $3.365.007 CITY OF SAN RAFAEL. CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 4. FIXED ASSETS A summary of changes in general fixed assets for the fiscal year ended June 30 , 1999 is as follows: Land and buildings Rolling equipment Furniture and equipment Improvements other than buildings Investment in general fixed assets Balance at Julv 1. 1998 $ 22,224,349 5,515,588 5,320,981 3.286.732 $ 36.347.650 Additions $ 754,023 884,467 73.518 $1.717.008 Deletions $ 230,035 109,992 $340.07 7 Balance at June 30. 1999 $ 22 ,224,349 6,039,576 6,095,456 3.360.250 $37.719.63 I A summary of the component unit -Sanitation District's fixed assets at June 30, 1999 follows: Land and easements Subsurface lines Sewage collection facilities General plant and administration Construction in progress Total Less accumulated depreciation Total 5. LONG-TEAAI DEBT $ 115,329 12,152,655 21,374,599 54,660 ?79.446 33,976,689 (11.549.951) $ 22.4?6.738 The City records long-term debt of governmental funds in the General Long-Term Debt Account Group. Other governmental fund obligations not expected to be financed with current available financial resources are also recorded in the general long-term debt account group. 30 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Long-term debt outstanding at June 30, 1999 was as follows: Interest Authorized Outstanding Maturity Rates and Issued June 30. 1999 San Rafael Joint Pmvers Financing Authority : 1997 Authority Revenue Bonds 2011 4.00 -6 .00 % 5,250,000 $ 4 .725 .000 San Rafael Redevelopment Agency Tax Allocation Bonds: Series 1992 2017 3.25 -6.45 18,615,000 15,550,000 Series 1995 2021 4.00 -6.00 8,895,000 8,045,000 Series 1999 2023 4.50 -5.60 23,504,004 23.504.004 Total Tax Allocation Bonds 47 .099.004 Special Assessment Bonds (with governmental commitment) Peacock Gap Refunding 2005 4.00 -4.75 2,405,000 1,375,000 Mariposa Road Assessments 2008 4.50 -6.90 233,688 155.000 Total Special Assessment Bonds (with governmental commitment) 1.530.000 Note payable 2025 8 .00 169.000 Total Long-term Debt $ 53.523.004 Component Unit -San Rafael Sanitation District: 1991 Certificates of Participation 2011 5.20 -6.80 5,010,000 $ 4.120.000 The City's long-term debt transactions during the fiscal year ended June 30, 1999 were as follows: Tax Special Liability V.lcation ~JlJ R~venu~ Allocation Assessm~nt Note Lease Sick L~a\'~ Bonds Bonds Bonds Payable Total Debt Purchases ObligatioJl; Balance at July I. 1998 $ 5.230.000 S 24,21 0,000 $1,769 ,000 $ 169,000 $ 31,3 78,000 S102,·B3 52.646 .535 Additions: Tax Allocation Bond 23,504,004 28,945 ,000 Vacation and s ick \ea ve obligations (net) 861.110 Retirements : Princ ipal repa>ments 50 5.000 615 .000 239 .000 1.359 .000 22 .763 Balanc~ at June 30 . 1999 $4.725 .000 $47.099 .004 31 .530 .000 $169.000 $ 58 .964 .000 579.670 53 .50 7.645 31 CITY OF SAl'l RAFAEL. CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 The City's debt service requirements, including interest, are follows: Ta:x Special Liability Revenue Allocation Assessment Note Lc:ase Bonds Bonds Bonds Pavablc Purchases Year Ending June 30: 2000 $ 660,405 $ 3,548,378 $ 286,955 $ $22.763 2001 660,737 3,553,176 287.112 22,763 2002 663.906 3,552.787 286,535 22,763 2003 655,293 3547,664 290,073 11,381 2004 655,180 3,547,415 287.860 Thereafter 2.933.784 61.869.358 436.058 642.200 6,229,305 79,618,778 1.874593 642,200 79.6 70 Less amount representing interest ( 1.504.305) (32.519.774) (344.593) 18.425) Total $ 4.725.000 $ 47.099.004 $1.530.000 $642.200 $71.245 Totals $ 4.518.501 4.523,788 4,525.991 4,504,411 4,490,455 65.881.400 88,44·U46 (3·Un097 ) $ 54.067A49 The component unit -Sanitation District's debt service requirements, including interest follows: Year Ending June 30. 2000 2001 2002 2003 2004 Thereafter Subtotal Less: Amount representing interest Present value of minimum lease payments A. 1992 AGENCY REFUNDING BOND $ 478,760 480,380 476,002 475,600 478,420 3.798.360 6,187,522 (2.067.5?2) $ 4.120.000 On May 1, 1992, the Agency issued Ta'C Allocation Refunding Bonds in the amount of $18,615,000. The proceeds of the bonds were used to refund $10,905,000 outstanding principal of the Agency's Central San Rafael Redevelopment Project Tax Allocation Bonds, Series 1985 which were issued in May 1985 to fund the construction of new improvements within the Project Area. The defeased Central San Rafael 32 B. CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Redevelopment Project Tax Allocation Bonds, Series 1985, was fully called during the fiscal year ended June 30, 1992. Thus, no amount is outstanding at June 30. 1999. The 1992 Bonds mature annually each December 1 from 1992 to 2017 , in amounts ranging from $340,000 to $1,350,000 and bear interest at rates ranging from 3.25 % to 6.45%. Interest is payable semiannually on June 1 and December 1. Bonds maturing on or after December 1, 2002 are subject to the optional redemption prior to maturity. in whole or in part, in inverse order of maturity on any date on or after December 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 the Tax Revenues and other funds. The annual requirements to amortize the outstanding bond indebtedness as of June 30 , 1999, including interest, are as follows: Year Ending June 30. Principal Interest Total 2000 $ 450,000 $ 972,406 $ 1,422,406 2001 480,000 945,662 1,425.662 2002 505,000 916,844 1,421,8-l-l 2003 535,000 885,629 1,420,629 2004 570,000 851,784 1,421,784 Thereafter 13.010.000 6.698.802 19.708.802 Total $ 15,550.000 $ 11.271.117 $ 26.821.127 1995 AGENCY BOND On October 1, 1995, the Agency issued Tax Allocation Bonds in the amount of $8,895,000 . The proceeds of the bonds were used to finance certain redevelopment activities of the Agency relating to the Central San Rafael Redevelopment Project Area. The Bonds mature annually each December 1 from 1995 to 2021, in amounts ranging from $170,000 to $610,000 and bear interest at rates ranging from 3.50 % to 6.00%. Interest is payable semiannually on June 1 and December 1. Bonds maturing on or after December 1, 2003 are subject to optional redemption prior to maturity, in whole or in part, either in inverse order of maturity or on a pro rata basis among maturities on any date on or after December 1, 2002 at a price equal to the principal amount, plus accrued interest on the redemption date, plus a premium ranging from 0.00% to 2 .00%. The Bonds are secured , on a parity with the 1992 Bonds, by a pledge and lien on Tax Revenues and amounts on deposit in certain funds and accounts held by the Fiscal Agent. 33 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 The annual requirements to amortize the outstanding bond indebtedness as of June 30, 1999, including interest, are as follows: Year Ending June 30. Principal Interest Total 2000 $ 190,000 $ 437,878 $ 627,878 2001 200,000 429,978 629,978 2002 210,000 421,468 631,468 2003 215,000 412,435 627,435 2004 225,000 402,750 627,750 Thereafter 7.005.000 4.312.464 11.317.464 Total $ 8.045.000 $ 6.416.973 $ 14.461.973 C. 1999 AGENCY BOND On June 16, 1999, the Agency issued Tax Allocation Bonds in the amount of $23,504,004. The proceeds of the bonds were used to finance certain redevelopment activities of the Agency relating to the Central San Rafael Redevelopment Project Area. The current interest bonds mature annually each December 1 from 2000 to 2023, in amounts ranging from $560,000 to $1,195,000 and bear interest at rates ranging from 4.50% to 5.00%. Interest is payable semiannually on June 1 and December 1. Current interest bonds maturing on or after December 1, 2008 are subject to optional redemption prior to maturity, in whole or in part, either in inverse order of maturity or on a pro rate 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 payment date and will be payable solely at maturity . The Bonds are secured, on a 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. 34 CITY OF SAN R<\'F AEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 The annual requirements to amortize the outstanding bond indebtedness as of June 30 . 1999, including interest, are as follows: Year Ending June 30. Principal Interest Total 2000 $ 560,000 $ 938 ,094 $ 1,498,094 2001 500.000 997,537 1'-+97.537 2002 525 ,000 974,475 1.499..+75 2003 550,000 949.600 1,499,600 2004 575,000 922 ,881 1,497 ,881 Thereafter 20.794,004 10 .049.087 30.843.091 Total $ ')3.504.004 $ 14.831.674 $ 38.335.678 D . 1997 AUTHORITY REVENUE BONDS On January 28, 1997, the San Rafael Joint Powers Financing Authority issued 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 acquire Reassessment District Bonds in the amount of$4,965,000 bearing interest at rates from 5.246 % to 6.996% issued by the City during the fiscal year for the purpose of consolidating and refunding the previously issued special assessment bonds: Sun Va11ey Open Space District, Series No. 1985-3; Kerner Boulevard Refunding Assessment District, Series 1986-1; and Civic Center -Northgate Refunding Assessment District, Series 1991-l. The 1997 Authority Revenue Bonds mature annua11y each September 2 from 1997 to 2011, in amounts ranging from $20,000 to $555,000 . Interest is payable semiannually on March 2 and September 2. The Bonds are subject to redemption in advance of maturity at the option of the City upon payment of the principal and interest accrued thereon to the date of redemption, plus a redemption premium ranging from 2.00 % to 5.00%. Revenues from the Reassessment District Bonds are utilized to meet debt service requirements of the Revenue Bonds . The Reassessment District Bonds are secured by unpaid reassessments confirmed against private property vvithin the applicable Reassessment District. 35 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 The annual requirements to amortize the outstanding bond indebtedness as of June 30. 1999, including interest, are as follows: Year Ending June 30. Principal Interest Toml 2000 $ 415,000 $ 245,405 $ 660,405 2001 435,000 225,737 660,737 2002 460,000 203,906 663,906 2003 475,000 180,293 655,293 2004 500,000 155,180 655,180 Thereafter 2.440.000 493.784 2.933.748 Total $4.725.000 $1.504.305 $6.')')9.305 E. COMPONENT UNIT -SANITATION DISTRICT The District issued $5,010,000 of Certificates of Participation on October 1, 1991 to refund $3,000,000 of then-outstanding 1980 Sewer Revenue bonds to reduce its total debt service payments and to finance the acquisition and construction of additional wastewater sewer system improvements. The transaction resulted in a then-deferred amount on refunding of $33,000 which is being amortized over eight years, the then-remaining life of the refunded debt. Deferred amount on refunding is reported as a reduction of the Certificates of Participation as per GASB 23, Accounting and Financial Reporting for Refundings of Debt Reported by Proprietary Activities. The annual requirements to amortize the outstanding bond indebtedness as of June 30. 1999, including interest, are as follows: Year Ending June 30. Principal Interest Total 2000 $ 210,000 $ 268,760 $ 478,760 2001 225,000 255,380 480.380 2002 235,000 241,002 476,002 2003 250,000 225,600 475.600 2004 270,000 208,420 478.420 Thereafter 2.930.000 868.360 3.798.360 Total $4.120.000 $2.067.5')') $ 6.187.5')2 36 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 F. OTHER LONG-TERlVl OBLIGATIONS At June 30. 1999. other long-term obligations consisted of as 169.000 promissory not~ 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. G. SPECIAL ASSESSMENT DEBT The City is "obligated in some manner" (as defined by GASB Statement No.6) for special assessment debt (1) because the City must cover delinquencies of special assessment bonds with other resources until foreclosure proceeds are received or (2) because the City has been indicated that it may do so. Long-term debt does not include special assessment debt issued under the 1911 Bond Act as the City is not liable in any manner for repayment. The County of Marin acts as the City's agent for property owners in collecting the assessments and forwarding the collections to bondholders. The 1911 Bonds were fully retired during the fiscal year ending June 30, 1999. 6. TAX AND REVENUE ANTICIPATION NOTES The California Statewide Communities Development Authority (the 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 1999 Tax and Revenue Anticipation Bonds. The Authority on behalf of participating agencies has issued $609,965,000 in a series of Bonds. The City's participation level is $3,850,000 . The proceeds of the bond sale have been placed in a twelve month guaranteed investment contract that will yield a return of 5.702%. The maturity date for the note is June 30, 2000. Repayment requirements are that $1.925,000, plus accrued interest of 76,786 is deposited prior to January 31. 2000, and the remainder of $1.925,000. plus accrued interest of $76.786 is made prior to April 30. 2000. 7. CAPIT AL LEASES The City leases various equipment through capital leasing arrangements in the governmental funds. The assets and obligations for agreements of the governmental funds are recorded in the Gen~ral Fixed Asset Account Group and the General Long-Term Debt Account Group. 37 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 respectively . The equipment acquired through the capital leases totaled $212,921 at June 30, 1999. The future minimum lease obligations as of June 30, 1999, were as follows: Year Ending June 30. 2000 2001 2002 2003 Subtotal Less: Amount representing interest Present value of minimum lease payments 8. LOANS RECEIVABLE The City has the following loans receivable at June 30, 1999: $22,763 22,763 22,763 11.381 79,670 (8.4?5) $ 71.?45 A. $100,000 loan from Marin Housing Development at 5% interest rate; all principal and interest due January 30, 2005. B. $100,000 loan from One "H" Street Associates at 0% interest with payments of $2,857 due annually and with final payment due January 18, 2034. C. $303,000 loan from Centertown Associates, Ltd. at 3% interest rate due semI- annually. The remaining loan receivable at June 30, 1999, was $225,536. The final payment is due on July 1,2065. D. $392,040 loan from the City Manager at 5.56% interest rate; principal and interest due monthly until August 31, 2026. The principal balance outstanding at June 30, 1999, was $376,451. E. $400,000 loan from the Chief of Police at 5.56% interest rate; principal and interest due monthly until August 1, 2027. The principal balance outstanding at June 30, 1999, was $388,234. 38 CITY OF SAN RAF AEL, CALIFORL~IA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1999 9. INTERFUND RECEIVABLES AND PAY ABLES A summary of due from and due to other funds is as follows: Fund Due From General Fund $ 25,000 Special Revenue Funds: Gas Tax Childcare Fund 7,654 Public Safety Fund Traffic and Housing Mitigation Grants Fund Park Dedication Fund 36,000 Capital Projects Funds: Bedroom Tax Fund 29,974 1992 Bonds Capital Project 722,063 1995 Bonds Capital Project Park Capital Projects Fund Total $ 870.691 10. FUND EQUITY RESERVES AND DESIGNATIONS Du~ T o 109,120 25,000 507,371 7,654 105,572 65.974 $ 820.691 Fund balances and retained earnings consist of reserved and unreserved amounts. Reserved fund equity represents that portion of a fund equity, which is not appropriable for expenditure or is legally segregated for a specific future use. The remaining portion is unreserved fund equity. Portions of unreserved fund equity 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. 39 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 A detailed schedule of the fund balances and retained earnings at June 30, 1999, is sho\vn as follows: Proprietary Fiduciary Governmental Fund TVlles Fund TVlles Fund TVlles Special Debt Capital Internal Trust and General Revenue Service Projects Service Agenc\' Tutals Fund balances/Retained earnings: Reserved : Encumbrances $ 72,719 $ 257,497 $ $ 20,-l78 $ S $ 350.69-l Pett), cash 3,800 3,000 6.800 Community development 670,404 670AO-l Department savings 233,066 233.066 Employee M.O.U. 823,730 82),730 Loans receivable 764,685 100,000 325,536 1.190.221 Ta.'\es receivable 492,721 492.721 Debt service 1,188,779 1.188,779 Projects 483,525 607,666 1,293,251 2.38-lA-l2 New Court St. Plaza ( 119,530) ( 119.530) Equipment replacement 107.350 107.35ll Building and structure 30,000 30,000 Facility closure 30,000 30.000 ERAF liability 109,831 109.831 Liability payments 200.000 200 .000 Total Reserved 3.534.951 1.332.513 1.188.779 1.639.265 3.000 7.698.508 Unreserved and Designated: Grant projects 319,791 319,791 Parkland 1,141,170 1,141,170 Construction 972,657 13,701 30,150,584 442,445 31,579,387 Traffic mitigation 8.936.314 8.936.31-l Total Unreserved and Designated 11.369.932 13.701 30.150.584 442.4-l5 41.976.66' Unreserved and Undesignated 4.512.507 4.053.064 895.613 (22.027) 621,225 10.060 .38' TOTAL FUND EQUITIES $8.047.458 $16.755.509 52.098.093 $31.767.822 $621.225 $4-lSA-l5 559.735 .552 40 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 11. FUND BALANCES, JULY 1, 1998 -PRIOR PERIOD ADJUSTMENTS 12. The City of San Rafael will reimburse the Agency for prior years capital project expenditures . The adjustments are as follows: Adjusted Julv 1. 1998 Adjustments Jul\' 1. 1998 Special Revenue Funds : Gas Ta.'( Fund $ 1,285,376 $ (109,120) $1.176,256 Traffic and Housing Mitigation 8,755,913 (507,371) 8 ,248,542 Capital Projects Funds: 1992 Agency Refunding Bonds 39,486 722,063 761,549 1995 Agency Bonds 4,423,020 (105,572) 4,317,448 DEFICIT FUND BALANCES At June 30, 1999, the City has no funds with deficit fund balances. 13. EXCESS OF EXPENDITURES OVER APPROPRIATIONS General Fund Special Revenue Funds: Recreation Revolving Fund Library Fund Debt Service Funds: Mariposa Assessment District 1992 Agency Refunding Bonds 1995 Agency Bonds U. EMPLOYEES' RETIREMENT PLAN Plan Description Appropriations $30,059,671 1,698,378 190,196 32,811 1,431,056 635,378 Expenditures Excess $30,211,996 $152,325 1,705,293 6,915 207,192 16,996 33,021 210 1,431,136 80 636,813 1,435 The City contributes to the Marin County Employees' Retirement Fund (the Fund). All permanent 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 have attained the age of 50, or 30 years of service (20 years for safety employees) regardless of age. These benefit provisions and all other requirements are established under the County Employees Retirement Law of 1937 . The City's retirement plan is 41 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 included in a separately issued report for 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 . Funding Policv 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 6.74% of payroll to the Fund for public safety personnel and 5 .66 % for other covered employees for the year ended June 30, 1999 . The City, due to a collective bargaining agreement. also has a legal obligation to contribute half of the employees' contribution up to a maximum of 7% of payroll for safety employees and a maximum of 5% of payroll for all other employees . Employees have an obligation to contribute the remaining portion. Annual Pension Cost The City's annual pension cost to the Fund for the year ended June 30, 1999 of $2,480,000 was equal to the city 's required and actual contributions. The annual required contribution was determine as part of the actuarial valuation performed as of June 30, 1998. 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 1998 actuarial valuation include an assumed rate of return on investment assets of 8.25 %, and annual payroll increases of 5.50% per year reflecting 4.50% 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 market value of investments over a period of five years . The Fund also uses the level percentage of payroll method to amortize the unfunded actuarial liability. It is assumed that payroll increases at an annual inflation rate of 4 .25% over the amortization period. As of June 30 , 1998 eight years are left in the amortization period . Three-Year Historical Trend Information Fiscal Year Annual Pension Cost Percentage of Net Pension Ending (APC) APC Contributed Obligation 6/30/97 2,949,871 100% 6/30/98 2,690,127 100% 6/30/99 2,480,000 100% 42 Actuarial Valuation Date 6/30/96 6130 /97 6i3 0/98 CITY OF SAN RAFAEL, CALIFORl"lIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Actuarial Actuarial Accrued Unfunded Value Liability (AAL) AAL Funded Covered of Assets Entrv Age (UAAL) Ratio Payroll 101,331,000 101,159,000 (172,000) 100% 15.-W3,000 1 14,506,000 110,198 ,000 (4,308,000) 104 % 16,928,000 131,142,000 124,239,000 (6,903,000) 106 % 20.361,000 15. PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION RETIREMENT PLAN) UA.-\L As J. % of Pavroll ( 1 )°/0 (25.3)% C'.., 9)°' .J.J. /0 The City contributes to the Public Agency Retirement System (PARS). which is a defined contribution retirement plan. A defined contribution retirement plan provides retirement benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual's account are to be detennined 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, CA 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 they are hired. An eligible employee is any employee who, at any time during which the employer maintains this plan, is not accruing a benefit under the Marin County Employees Retirement Fund. (See Note 12). Contributions made by an employee and the employer vest immediately. As determined by the plan, each employee must contribute 3.75% of gross earnings to the plan. The City contributes an additional 3 .75% of the employee's gross earnings . During the year, the City contributed $87 ,585 and employees contributed $87,585 . The total covered payroll of employees participating in the plan for the year ended June 30 , 1999. was $2,329,553. The total payroll for the year was $24,150,733. 16. POST -EMPLOYlVIENT 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 43 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Fund within 120 days of retirement from City employment. At June 30 , 1999, 165 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, 1999, those costs totaled $274,519. 17. SEGMENT INFORIVIATION FOR ENTERPRISE FUNDS 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, 1999, is as follows: Types of !!oods or services provided Wastewater transmission Operating revenues Depreciation and amortization expense Operating income Tax revenues Non-operating revenues (expenses) Net income Fixed asset additions Net working capital Total Assets Long-term obligations payable from operating revenues Total Fund Equity 18. RISK MANAGEMENT $ 4,711,879 785,937 324,239 427,380 208 ,572 532,811 119 ,920 1,699,660 24,641,434 3,852,072 20,412,953 The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City is self-insured up to a maximum of $500,000 for each general liability claim, $250,000 for each workers ' compensation claim, and $25,000 for each property damage claim . The City participates in a public agency risk sharing pool (California Joint Powers Risk Management Authority) for general liability claims in excess of the self-insured amounts up to $9,500,000. The City purchases commercial insurance for workers' compensation claims in excess of the self-insured amount up to $9 ,750,000 . The City also purchases commercial insurance for property damage claims in excess of the self-insured amount up to $28,853,000. The City accounts for and finances its uninsured risks of loss in the Internal Service Funds . The City had established a claims liability of $2, 158, 125 at June 30, 1999, based on the requirement of Governmental Accounting Standards Board Statement No. 10 , which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been 44 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 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, 1997, 1998 and 1999 are as follows: Balance at Current Year Balance at General Beginning of Claims & Changes Claim End of Liabilitv Fiscal Year In Estimates Pavments Fiscal Year 1996-97 $ 600,524 $ 321.747 $ (193.159) $729.112 1997-98 729,112 135,381 (58,859) 805.634 1998-99 805,634 2,009,846 (2,216,282) 599.198 Worker's Balance at Current Year Balance at Compensation Beginning of Claims & Changes Claim End of Liabilitv Fiscal Year In Estimates Pavments Fiscal Year 1996-97 $1,370,371 $ 211,743 $ (362,038) $1,220,076 1997-98 1,220,076 421,352 (538,321) 1,103,107 1998-99 1,103,107 3,947,015 (3,491,195) 1,558,927 The California Joint Powers Risk Management Authoritv 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 $213,165 in premiums to the Risk Management Authority during the fiscal year ended June 30, 1999. Condensed financial information for the California Joint Powers Risk Management Authority for the fiscal year ended June 30, 1999 is as fo11o\vs: Assets Liabilities Equity: Retained earnings Total Liabilities and Equity Revenues Expenses Refunds to members Net decrease in retained earnings 45 $ 58.520.365 $ 38,454,966 20.065.399 $ 58.520.365 $ 12,250,838 (15,640,470) (5.441.797) $ (8.830.929) CITY OF SAN RAFAEL, CALIFOIUHA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 19. JOINT POWER AGREEMENTS The City participates in various organizations through fonnally organized and separate entities established under the Joint Exercise of POVv'ers Act of the State of California. As separate legal entities , these entities exercise full powers and authorities within the scope of the rebted 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 . Joint Ventures : The Marin Countv Integrated On-Line Librarv Svstem (the Svstem) was fonned 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 fonnula developed by the library directors of the participants , the City's share of the acquisition cost in the amount of $108,007 represents 18 .98% of ownership in the System. Operating costs for the System are also shared by each participant by applying the cost sharing the fonnula. Financial Statements of the System can be obtained at the County Librarian , Marin County Free Library, Civic Center, Administration Building, San Rafael, CA 94903. The Marin Street Light Acquisition Joint Powers Authority (MSLAJPA) was fonned 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 subsequent transfer of the facilities to the individual local agencies . The Governing Board consists of five members from the participating agencies. Each of the local agencies ' share of contribution was based on the number of street lights to be acquired in the local agencies' individual jurisdiction in relation to the total number of street lights to be acquired by the MSLAJP A. The Marin Emergencv Radio Authoritv was fonned on February 28, 1998 by the County of Marin and twenty-five 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 from -l .75 % to 5 .01% maturing 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 fonnula established by a majority of the Governing Board . The Members have entered into a Project Operating Agreement on Febmary 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 Service Payment is scheduled in July 1999. The City has established a reserve in its Capital Improvement Fund to pay future Service Payments . 46 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Jointly Governed Organizations: The Countvwide Plannin£ AQ:encv was established by the County of Marin and ten local cities to implement countywide performance standards for traffic. housing. \vater and sev,:er facilities. and environmental protection to ensure that residential and commercial gro\\1h does not exceed local water, sewer and transportation capacities. The Governing Board of the County\vide Planning Agency consists of one member of the County Board of Supervisors and one member of the City Council of each participating city. The Marin Countv Cable Rate Re£ulation Joint Powers Authoritv was established to regulate the rates for cable television service and equipment and to advise the participants in their exercise of their license authority. The Governing Board of the Marin County Cable Rate Regulation Joint Powers Authority consists of one member from each of the seven participating local cities. The Marin Countv Major Crimes Task Force was established by twelve local law enforcement agencies to provide funding and policy direction of a unit of peace officers and support personnel to detect, apprehend and prosecute major crimes including highly mobile criminal narcotic traffickers thus reducing major narcotic activity and combating its influence throughout the County. The Governing Board of the Marin County Major Crimes Task Force consists of nine members, one city council member, one member of the Marin County Board of Supervisors, two city managers, two chief law enforcement officials, two residents of Marin County, and the Marin County Administrator. The Marin Countv Hazardous and Solid Waste Joint Powers Authoritv 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. 20. LITIGATION There are several pending lawsuits in which the City is involved. The City's attorneys estimate that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the financial statements of the City. 21. RELATED PARTY TRANSACTION On August I , 1996, the City made a 30-year loan to the City Manager in the amount of $392.000. at an interest rate equivalent to Local Agency Investment Fund interest rate, for the purchase of a home. The loan is secured by the Deed of Trust. 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 Local Agency Investment Fund interest rate. for the purchase of a home . The loan is secured by the Deed of Trust. 47 22. YEAR 2000 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30 , 1999 The Year 2000 issue is the result of possible shortcomings in many electronic data processing systems and other electronic equipment that may adversely affect the City of San Rafael's operations as early as fiscal year 1998-99. The year :WOO issue refers to the fact that many computer programs use only the last two digits to refer to a year, therefore, both 1900 and 2000 would be referred to as "00." Computer programs will have to be adjusted to recognize the difference betw'een those two years or the programs will fail or create errors. Other year 2000 issues exist-some programs may not recognize the year 2000 as a leap year and other programs may have been written to use a 9/9/99 date as a delete date to keep them from being erased. Furthermore, the year 2000 issue not only affects an entity's information technology systems, but other systems-such as traffic signals, emergency services systems, elevators, and vehicles-may also contain computer chips that have date recognition features. Also, year 2000 issues facing its business partners and others may affect the City of San Rafael. On February 16,1999, staff provided an initial report on the City's Year 2000 readiness. In the report, City staff developed a process and related prioritization methodology to identify, track and monitor progress toward making certain all systems, equipment and related party interactions were Year 2000 ready. The five step process involved in the City's Year 2000 preparedness plan incorporated: 1. Awareness Stag:e -Establishing a budget and project plan to deal with Y2K issues. 2. Assessment Stag:e -Inventorying all systems and identifying related components. 3. Remediation Stage -Actually making changes to the systems (such as software upgrades, program modifications, etc.) 4. Testing: Stage -Developing a testing plan and reviewing results for Y2K compliance . 5 . Implementation Stage -Upon successful completion of the Testing Stage, begin using Y2K compliant solutions in an ongoing environment. The methodology used to focus the necessary resources toward resolving Year 2000 issues was based upon a model which viewed Y2K issues from the inside out. Specifically, the City chose three views which would be instrumental in developing our prioritization of Y2K tasks . • CITY SERVICES - A comprehensive look at the services the City delivers, and the Y2K issues surrounding these services . This includes not only computers, but facility maintenance. infrastructure needs, equipment and vehicles . • INTERGOVERt~MENTAL AND UTILITY SERVICES -This category includes quasi- government services such as electricity and water, financial receipts from taxing authorities and data sharing requirements with other governments (Department of Justice). • PRIVATE SECTOR SERVICES -Through a risk analysis process, determining those businesses \vhich are integral to supporting City staff in providing essential services to the community and employees (banking relations, fuel supplies). 4 8 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Once categorized into the three groups above, staff determined a level of prioritization. or ranking, was needed. This step is instrumental in establishing critical dates. assigning responsibilities, and developing action steps in order to properly test and implement Y2K solutions. Rankings were defined as fo11o\\/s: 1) Mission Critical -possible threat to loss of life or damage to property; citizen perception is high as essential service 2) Business Operations -interruption of business services; possible litigation; adverse tinancial impacts 3) Management Information -non-essential services which citizens would perceive as "able to live without"; management data and reporting The City of San Rafael has completed an inventory of the City's computer equipment and other electronic equipment and systems that may be affected by the Year 2000 issue and that are necessary to conducting San Rafael"s operations. The City has identified the following systems requiring Year 2000 remediations: • Mainframe (BRC) Computer systems -most Financial application fixes are already in place and working; Police system testing should be completed by October of 1999; Recreation products were replaced and the Community Services Department was off BRC applications by November 1999; Fire applications corrected in May of 1999. Testing for all BRC systems was completed by October 1999 and all Year 2000 corrections are fully implemented as of this date. • Computer Networks -most PC's are new (two years or less since acquisition) so they are compliant. Aged systems were replaced as of September 1999. All Local Area Networks (LAN's) and the Wide Area Network (WAN) has completed the implementation stage. • Parking Citations -system hardware was not Year 2000 compliant and was upgraded in November of 1999 and is fully implemented. • Police Radio System and Logging Recorder (Dispatch Dictaphone) -Systems are non- compliant -upgrades for compliance completed in November of 1999 and are fully implemented. • Traffic Signals -tracking software not compliant -acquired and installed Year 2000 version in October 1999 and is fully implemented. • Utilities -All utility services provided in the incorporated San Rafael are done so by other vendors. Staff members are working closely with major providers. To the extent possible. vendors stating their systems are Year 2000 ready have provided documentation. All system issues are remedied through in-house staff first and the use of contracted vendors as necessary. $100,000 was appropriated from the General Fund in fiscal year 1998-99 to pay for system upgrades and changes necessary to resolve Year 2000 issues. To the extent additional funds are necessary, future appropriations from the 1999-2000 budget will be sought. 49 CITY OF SAN RAFAEL, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Because of the nature of the potential problem, the full and complete cost associated with Year 2000 cannot be estimated accurately, nor can 100% assurance be given that all equipment will function, as it should into the new millennium. The impact on City operations, should other governmental agencies or vendors fail to achieve Year 2000 compliance in a timely manner, cannot be determined either. The scope of an audit does not include an evaluation of the adequacy of management's plans with respect to this issue. 50 SUPPLEMENT ARY INFORMATION CITY OF SAN RAFAEL. CALIFORNIA ASSETS Cash and investments Accounts receivable Taxes receivable Grants receivable Loans receivable Due from other funds TOTAL ASSETS SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 1999 BAYPOINT LAGOONS RECREATION ASSESSMENT REVOLVING DISTRICT $ 54,612 $ 14,570 191 $ 54.612 $ 14.761 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 53,164 $ Due to other funds Deferred revenue Total Liabilities 53.164 Fund Balances: Reserved for: Encumbrances 13,889 Loans Equipment replacement Building and structure Facility closure Projects Liability payments Unreserved -designated for: Grant projects Parkland Construction Traffic mitigation Unreserved -undesignated ( 12.441) 14.761 Total Fund Balances 1.448 14.761 TOT AL LIABILITIES AND FUND BALANCES $ 54.612 $ 14.761 51 PARKING GAS SERVICES TAX $ 247,376 $ 1,100,179 12,005 1,462 $ 259.381 $ 1.1 0 1.641 $ 1,277 $ 19,864 109 ,120 1.277 128 .984 102,850 972,657 155.254 258.1 04 972.657 $ 259.381 $ 1.101.641 STREET EQUIPMENT MAINTENANCE CHILDCARE REPLACEMENT & CLEANING $ -+00,688 $ 2,081,334 $612,819 12,329 7.654 $ 420.671 $ 2.081.334 $ 612 .819 90,865 136,005 10,544 90.865 136.005 10.544 76,017 107,122 253.789 1.838.207 602.275 329.806 1.945.329 602.275 $ 420 .671 $2.081.334 $ 612.819 SEWER MAINTENANCE $ 41,488 $ 41.488 41.488 41.488 $ 41.488 52 HOUSEHOLD HAZMAT FACILITY $ 360,954 114.761 $475.715 117 ,703 117.703 2,000 4,500 30,000 30,000 291.512 358.012 $475.715 LOCH LOMOND ASSESSMENT DISTRICT $ 242,878 421 $ 243 .299 200,000 43.299 24 3.299 $ 243.')99 (Continued) CITY OF SAN RAFAEL, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 1999 TRAFFIC AND PUBLIC HOUSING 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 Due to other funds Deferred revenue Total Liabilities Fund Balances: Reserved for: Encumbrances Loans Equipment Replacement Building and Structure Facility Closure Projects Liability payments Unreserved-Designated for: Grant projects Parkland Construction Traffic Mitigation Unreserved-Undesignated Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES LIBRARY $ 32,821 20,974 $53.795 $ 5,907 5.907 47.888 47.888 $ 53.795 53 SAFETY STORMWATER MITIGATION $ 1,071 29,627 14,761 $ 45.459 $ 18,245 25,000 43.245 6,326 (4.112) 2.214 $ 45.459 $ 505,583 1,200 $ 506.783 $ 195,692 195.692 33,028 278.063 311.091 $ 506.783 $9, .. W6,154 91,965 100,000 $ 9.598.119 $ 54.434 507,371 561.805 100,000 8,936.31-l 9.036.314 $9.598.119 DEVELOPMENT SERVICES $ 1,089,842 18,650 $ 1.108.492 $ 1,500 1.500 607,666 499.326 1.106.992 $ 1.108.492 GRANTS $ 149,269 8,170 201,892 $359.331 $ 19,529 7,654 27.183 12,357 319,791 332.148 $ 359.331 PARKLAND DEDICATION $ 1,186,510 21,725 36.000 $ 1.244.235 $ 80,581 21.726 102,307 758 1,141,170 1.141.928 $ 1.244.23 5 54 EMERGENCY MEDICAL SERVICES $ 8,348 11,381 2,367 $ 22.096 $ 12,341 12.341 6,000 3.755 9.755 $ 22.096 TOTAL $ 17,536.496 311,137 2,788 249,956 100,000 43.654 $ 18.24·+.03 I $ 817,651 649.145 21.726 1.488.522 257,497 100,000 107,350 30,000 30,000 607,666 200,000 319,791 1.141,170 972,657 8,936.314 4.053.064 16.755.509 $ 18.24-L03 I (Concluded ) CITY OF SAN RAFAEL, CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1999 BAY POINT LAGOONS RECREATION ASSESSMENT PARKING GAS REVOLVING DISTRICT SERVICES TAX REVENUES: Taxes and special assessments $ $ 27,399 $ $ Licenses and permits 112,502 Fines and forfeitures Uses of money and property 3,967 304 11,928 38,804 Intergovernmental 1,152,441 Charges for current services 859,762 645,502 Other revenues 8,323 1.089 1.513 Total Revenues 872.052 27.703 771.021 1.192.758 EXPENDITURES: General governmental 129,178 Public safety 432,523 Public works and parks 27,638 85,404 Community development Culture and recreation 1,705,293 Capital Outlay 1.046.357 Total Expenditures 1,705.293 27,638 647.105 1.046,357 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (833.241 ) 65 123.916 146.401 OTHER FINANCING SOURCES (USES): Operating transfers -In 753,140 61,837 Operating transfers -Out (66.454) (350.000) Total Other Financing Sources (Uses) 753,140 (4.6172 (350.000) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES) (80,101) 65 119,299 (203.599) FUND BALANCES -JULY 1, 1998 81,549 14,696 138,805 1,285,376 PRIOR PERIOD ADJUSTMENTS (109.120) FUND BALA~CES -JUNE 30, 1999 $ 1,448 $ 14.761 $258.104 $ 972.657 55 STREET HOUSEHOLD LOCH LOMOND EQUIPMENT MAINTENANCE SEWER HAZMAT ASSESSMENT CHILDCARE REPLACEMENT & CLEANING MAINTENANCE FACILITY DISTRICT $ $ $ $ $ $ 60,545 19,058 26,024 76,397 21,473 12,000 29,935 11,865 57,729 36,965 2,152,327 897,115 744,881 640,607 40.221 455 11.554 2.236.080 1.013.733 21.928 756.881 738.119 72.410 735,842 1,656,252 660,503 54 2,202,328 1,269.439 2.202,328 1.269.439 1,656.252 660.503 735.842 54 33.752 (255.706) (1.634.324) 96.378 2.277 72.356 1,667,061 ( 162,846) (68.044) ( 162.846) 1.667.061 (68.044) (129,094) (255,706) 32,737 28,334 2,277 72,356 458,900 2 ,2 01 ,035 569,538 13,154 355,735 170,943 $ 329.806 $ 1.945.329 $ 602.275 $ 41.488 $ 358.0 12 $ 243.299 (Continued ) 56 CITY OF SAN RAFAEL. CALIFORNIA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1999 TRAFFIC AND PUBLIC HOUSING LIBRARY SAFETY STORMWATER MITIGATION REVENUES: Taxes and special assessments $ $ $ $ Licenses and perm its Fines and forfeitures 1,500 Uses of money and property 41,550 341 26,604 332,795 Intergovernmental 162,610 104,430 Charges for current services 8,032 3,519 710,634 1,848,380 Other revenues 11.889 172 372 142.943 Total Revenues 224.081 108.462 739.110 2.324.118 EXPENDITURES : General governmental Public safety 54,944 Public works and parks Community development Culture and recreation 207,192 Capital Outlay 83.251 1.363.4'>2 1.536.346 Total Expenditures 207.192 138.195 1.363.422 1.536.346 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 16.889 (29,733) (624.312) 787.772 OTHER FINANCING SOURCES (USES): Operating transfers -In 560 ,016 Operating transfers -Out Total Other Financing Sources (Uses) 560.016 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES) 16,889 (29,733) (64,296) 787,772 FUND BALANCES -JULY 1, 1998 30,999 31,947 375,387 8,755,913 PRIOR PERIOD ADJUSTMENTS (507.371) FUND BALANCES -JUNE 30, 1999 $ 47.888 $ 2.214 $ 311.091 $9.036.314 57 EMERGENCY DEVELOPMENT PARKLAND MEDICAL SERVICES GRANTS DEDICATION SERVICES TOTAL $ $ $ $1,571,856 $ 1,659,800 131.560 37,981 39,481 45,099 17,725 40,675 1,943 739,429 643,871 9,464 2.167,510 35,342 124,914 92,337 1,007,088 9.770,440 62.741 12.232 14.160 307.664 143,182 836,723 156.636 2.580.887 14.815.884 129.178 223,730 2.511,259 3,958.298 117,014 171,553 2.718'-+ 1 8 106,578 471,394 577,972 4,114,813 5.298.815 106.578 812,138 171,553 2.511.259 16.797.494 36,604 24.585 (14,917) 69,628 (1,981,610) 80,000 140,000 160,228 3,422,282 (93,500) (220.10 1) (960.945) ( 13 .500) 140.000 (59 .873) 2.461.337 36,604 11,085 125,083 9,755 479,727 1,070,388 321,063 1,016,845 16.892.273 (616,491) $1.106.992 $332 ,148 $ 1,141,928 $ 9 .755 $ 16.755.509 (Concluded) 58 CITY OF SAN RAFAEL. CALIFORNIA RECREATION REVOLVING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30. 1999 VARIANCE FAVORABLE BUDGET ACTUAL (UNFA YORABLE) REVENUES: Uses of money and property Charges for current services Other revenues Total Revenues EXPENDITURES: Culture and recreation Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): $ 815,039 123.700 938.739 1.698.378 1.698.378 (760.139) $ 3,967 $ 3,967 859,762 44,723 8.373 (114.877) 872.052 (66.187) 1.705.793 (6.915) 1.705.293 (6.915) (833.241) (73.102) Operating transfers -In _....:....72=3:...:....1:....;4=0 ___ 7!...:5:...:::.3.!....:.l--=-4~0 ___ --=30::..:...0:::...,:0=...=.0 Total Other Financing Sources (U ses) _....:....72=3:...:....1.::....;4=0 ___ 7!...:5:...:::.3.!....:.I--=-4~0 ___ --=::...:30::..:...0:::...,:0=...=.0 EXCESS (DEFICIENCY) OF REVENUES OYER EXPENDITURES AND OTHER SOURCES (USES) $ (36.999) FUND BALANCES -JUL Y 1, 1998 FUND BALANCES -JUNE 30, 1999 59 (80,101) $ (43.102) 81.549 $ 1.448 CITY OF SAN RAFAEL, CALIFORNIA BA YPOINT LAGOONS ASSESSMENT DISTRICT FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 VARIANCE FAVORA.BLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Taxes and special assessments Uses of money and property Total Revenues EXPENDITURES: Public works and parks Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES -JULY 1,1998 FUND BALANCES -JUNE 30, 1999 $27,500 27.500 30.333 30.333 $ (2.833) 60 $27,399 304 27.703 77.638 27.638 65 14,696 $14.761 $ (101) 304 203 2.695 7.695 $ 2.898 CITY OF SAl ...... RAFAEL. CALIFORNIA PARKING SERVICES FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 VARlANCE FAVORA.BLE BUDGET ACTUAL (UNFAVORABLE) REVENUES : Licenses and permits Uses of money and property Charges for current services Other revenue Total Revenues EXPENDITURES: General government Public safety Public works and parks Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES) FUND BALANCES -JULY 1, 1998 FUND BALANCES -JUNE 30, 1999 $ 104,040 2,000 610,630 716.670 146,071 522,592 85.694 754.357 (37.687) 61,837 (66.454) (4.617) $ (42.304) 61 $ 112,502 11,928 645,502 1.089 771.021 129,178 432,523 85.404 647.105 123.916 61,837 (66.454) (4.617) 119,299 138 .805 $258.104 $ 8,462 9,928 34,872 1.089 54.351 16,893 90,069 290 107.?52 161.603 $ 161.603 CITY OF SAN RAFAEL, CALIFORNIA GAS TAX FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES [N FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 VARIA~CE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Uses of money and property $ 36,000 $ 38,804 $ 2,804 Intergovernmental 1,080,928 1,152,441 71,513 Other revenue 1.513 1.513 Total Revenues 1, 116.928 1.192.758 75.830 EXPENDITURES: Capital outlay 1.808.946 1.046.357 767.589 Total Expenditures 1.808.946 1.046.357 762.589 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (697.018) 146.401 838.419 OTHER FINANCING SOURCES (USES): Operating transfers -Out (350.000) (350.000) Total Other Financing Sources (Uses) (350.000) (350.000) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES) $(1.042.018) (203,599) $838.419 FUND BALANCES -JULY 1, 1998 1.285,376 PRIOR PERIOD ADJUSTMENTS (109.120) FUND BALANCES -JUNE 30, 1999 $ 972.657 62 CITY OF SAN RAFAEL, CALIFORNIA CHILDCARE FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 VARlANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Uses of money and property Intergovernmental Charges for current services Total Revenues EXPENDITURES: Culture and recreation Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES) FUND BALANCES -JULY 1, 1998 FUND BALANCES -JUNE 30, 1999 $ 6,800 82,899 ?087.849 ?.177.548 2.254.718 2.254.718 (77.170) (16?846) (16?846) $ (240.016) 63 $ 26,024 $ 19,224 57,729 (25,170) 2.152.327 64.478 2.236.080 58.532 2.202.328 52.390 2.202.328 52.390 33.75? 110.9?2 (162.846) (16?846) (129,094) $ 110.92? 458.900 $ 329.806 CITY OF SAN RAFAEL, CALIFORNIA EQUIPMENT REPLACEMENT FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 VARL-\:\ICE FAVOR.-\BLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Uses of money and property Charges for current services Other revenue Total Revenues EXPENDITURES: Capital outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES -JUL Y 1, 1998 FUND BALANCES -JUNE 30, 1999 $ 110 ,000 872,936 204.000 1,186.936 1.317.134 1.317.134 $ (130.198) 64 $ 76,397 $ (33.603) 897,115 24,179 40.2/1 (163 .779) 1.013.733 (173.203) 1.269.439 47.695 1.269.439 47.695 (255,706) $ (125.508) 2.201.035 $1.945.329 CITY OF SAN RAFAEL, CALIFORNIA STREET MAINTENANCE & CLEANING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Uses of money and property Other revenues Total Revenues EXPENDITURES: Public works and parks Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES $ $ 21,473 2.300 455 2.300 21.928 2,069.261 1.656.? 52 2.069,261 1.656.252 (2,066.961) (1.634.324) 1,667.061 1.667.061 1.667.061 1.667.061 AND OTHER SOURCES (USES) $ (399.900) 32,737 FUND BALANCES -JULY 1, 1998 569.538 FUND BALANCES -JUNE 30, 1999 $ 602.275 65 $ 21,473 (1.845) 19.6')8 413.009 413.009 432.637 $432.637 CITY OF SAN RAFAEL, CALIFORNIA SEWER MAINTENANCE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVO~~BLE) REVENUES: Uses of money and property Charges for current services Total Revenues EXPENDITURES: Public works and parks Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -Out Total Other Financing Sources (Uses) EXCESS OF REVENUES OVER EXPENDITURES AND OTHER SOURCES FUND BALANCES -JULY 1. 1998 FUND BALANCES -JUNE 30, 1999 $ 12 ,000 759.645 771.645 676.931 676.931 94.714 (68.044) (68.044) $ 26.670 66 $ 12,000 744.881 756.881 660.503 660.503 96.378 (68.044) (68.044) 28,334 13.154 $ 41.488 $ (14.764) (14.764) 16.428 16.428 1.664 $ 1.664 CITY OF SAN RAFAEL, CALIFORNIA HOUSEHOLD HAZMAT FACILITY FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Licenses and permits Uses of money and property Intergovernmental Charges for current services Other revenues Total Revenues EXPENDITURES: Public safety Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES) FUND BALANCES -JUL Y 1, 1998 FUND BALANCES -JUNE 30, 1999 $ 12,000 16,000 49,200 731,490 9.500 818.190 827.742 827.742 $ (9.55 7 ) 67 $ 19,058 $ 7,058 29,935 13,935 36,965 (P ?"I~) -,--,) 640,607 (90,883) 11.554 2.054 738.119 (80.071 ) 735.842 91.900 735.842 91.900 2,277 $ 11.829 335.735 $ 358,012 CITY OF SAN RAFAEL, CALIFORNIA LOCH LOMOND ASSESSMENT DISTRICT ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30. 1999 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Taxes and special assessments Uses of money and property Total Revenues EXPENDITURES: Public works and parks Total Expenditures EXCESS OF REVENUES OVER EXPENDITURES AND OTHER SOURCES FUND BALANCES -JULY 1, 1998 FUND BALANCES -JUNE 30, 1999 $59,700 59.700 5.170 5.170 $54.530 68 $ 60,545 11.865 72.410 54 54 72,356 170.943 $ 243.299 $ 845 11.865 12.710 5.116 5.116 $17.826 CITY OF SAN RAFAEL, CALIFORNIA LIBRARY FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 VARIANCE FAVORABLE BUDGET ACTUAL (UNF A VORABLE) REVENUES: Uses of money and property Intergovernmental Charges for current services Other revenues Total Revenues EXPENDITURES: Culture and recreation Total Expenditures EXCESS OF REVENUES OVER EXPENDITURES AND OTHER SOURCES FUND BALANCES -JUL Y 1, 1998 FUND BALANCES -JUNE 30, 1999 $ 28,610 162,000 5,600 6.000 202.210 190.196 190.196 $ 12.014 69 $ 41,550 $ 12,940 162,610 610 8,032 2,432 11.889 5.889 224.081 21.871 207.191 (16.996) 207.19'7 (16.996) 16,889 $ 4.875 30.999 $ 47.888 CITY OF SAN RAFAEL, CALIFORNIA PUBLIC SAFETY FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 VARIANCE FA VORl\BLE BUDGET ACTUAL (UNFAVORABLE) REVENUES : Uses of money and property Intergovernmental Charges for current services Other revenues Total Revenues EXPENDITURES: Public safety Capital outlay Total Expenditures DEFICIENCY OF REVENUES UNDER EXPENDITURES AND OTHER USES FUND BALANCES -JUL Y 1, 1998 FUND BALANCES -JUNE 30, 1999 $ 180 128,089 5,050 133.319 143,162 143.16') $ (9.843) 70 $ 341 104,430 3,519 172 108.462 54,944 83.251 138.195 (29,733) 31.947 $ ').214 $ 161 (23,659) (1,531) 172 (24.857) 88 ,218 (83.251 ) 4.967 $ (19.890) CITY OF SAN RAFAEL, CALIFORNIA STORMW ATER FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Fines and forfeitures Uses of money and property Charges for current services Other revenue Total Revenues EXPENDITURES: Capital outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers -In TOT AL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES) FUND BALANCES -JUL Y 1, 1998 FUND BALANCES -JUNE 30, 1999 $ 1,600 12,000 728,150 741.750 1.465.596 1.465.596 (723.846) 560.016 560.016 $ (163.830) 71 $ 1,500 $ (100) 26,604 14,604 710,634 (17,516) 37' 372 739.110 (2.6-1-0) 1.363.422 107.174 1.363.427 10/.174 (624.312) 99.534 560.016 560.016 (64,296) $ 99.534 375.387 $ 311.091 CITY OF SAN RAFAEL, CALIFORNIA TRAFFIC AND HOUSING MITIGATION FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30. 1999 VARI.-\~CE FAVORA.BLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Uses of money and property Charges for current services Other revenues Total Revenues EXPENDITURES: $ 256,600 1,791,101 2.047.701 $ 332,795 1,848,380 14') .943 2.3 24.118 $ 76,195 57,279 142.943 276 .4 17 Capital outlay ---.!7...:..:.5~8:....:.4=.6=83:::.....-_...!..1 :=..5..=...36~ . .::...34~6~ __ ~6=.0:....:.4~8.=3 3:::....!..7 Total Expendi tures ---.!7...:..:.5~8:....:.4=.6=83:::.....-_...!..1 :=..5..=...3 6~ . .::...34~6~ __ ~6=.0:....:.4~8 .=3 3:::....!..7 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES $ (5.536.982) 787,772 $6.324.754 FUND BALANCES -JULY 1, 1998 8,755,913 PRlOR PERlOD ADJUSTMENTS (507.371) FUND BALANCES -JUNE 30, 1999 $ 9.036.314 72 CITY OF SAN RAFAEL, CALIFORNIA DEVELOPMENT SERVICES FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30. 1999 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Uses of money and property Charges for current services Other revenue Total Revenues EXPENDITURES: General government Total Expenditures EXCESS OF REVENUES OVER EXPENDITURES AND OTHER USES FUND BALANCES -JULY 1, 1998 FUND BALANCES -JUNE 30, 1999 $ 6,000 120.000 1/6.000 120.000 120.000 $ 6.000 73 $ 45,099 35,342 62.741 143.182 106.578 106.578 36,604 1.070.388 $ 1.106.992 $ 45,099 29,342 (57.259) 17.182 13.4?7 13.422 $ 30.604 CITY OF SAN RAFAEL, CALIFORNIA GRANTS FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 REVENUES: Fines and forfeitures Uses of money and property Intergovernmental Charges for current services Other revenues Total Revenues EXPENDITURES: Public safety Public works and parks Culture and recreation Total Expenditures EXCESS (DEFICIE"'JCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES) FUND BALANCES -JULY 1, 1998 FUND BALANCES -JUNE 30, 1999 BUDGET $ 3,975 1,342,953 58,900 33.880 1.439.708 847,347 199,671 514.734 1.561.752 (122.044) 80,000 (93.500) (13.500) $ 035 .544) 74 ACTUAL $ 37,981 17,725 643,871 124,914 12.')32 836.723 223,730 117,014 471,394 8P,138 24.585 80,000 (93 .500) (13.500) 11,085 321.063 $332.148 V:\RL-\~CE FA VOR..-\BLE (UNFAVORABLE) $ 37,981 13,750 (699 ,082) 66,014 (21.648) (60').985) 623,617 82,657 43.340 749.614 146.629 $ 146.629 CITY OF SAN RAFAEL, CALIFORNIA PARKLAND DEDICATION FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 REVENUES : Uses of money and property Intergovernmental Charges for current services Other revenues Total Revenues EXPENDITURES: Public works and parks Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES) FUND BALANCES -JULY 1, 1998 FUND BALANCES -JUNE 30, 1999 BUDGET ACTUAL $ 23,200 $ 40,675 9,464 101,802 92,337 14.160 175.002 156.636 437.885 171.553 437.885 171.553 (312.883) (14.917) 140.000 140.000 140.000 140.000 $ (17 7 .883) 125,083 1.016.845 $1.141.928 75 VARIANCE FAVORABLE (UNFAVORABLE) $ 17,475 9,464 (9,465) 14.160 31.63~ 266.332 766 .332 297.966 $ 797.966 CITY OF SAN RAFAEL, CALIFORNIA EMERGENCY MEDICAL SERVICES FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30 , 1999 REVENUES: Taxes and special assessments Uses of money and property Charges for current services Total Revenues EXPENDITURES: Public safety Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES) FUND BALANCES -JULY 1, 1998 FUND BALANCES -JUNE 30, 1999 BUDGET $1,575,510 1.036.950 2,612.460 2.764.321 2.764.321 (151.861) 392,718 (220,101) 172.617 $ ')0.756 76 ACTUAL $1,571,856 $ 1,943 1.007,088 2.580,887 2.511.')59 2.511.259 69.628 160,228 (220,101) (59.873) 9,755 9.755 VARIANCE FAVORABLE (UNFA VORABLE) $ (3,654) 1,943 (29.862) (31.573) 253.062 253.062 221.489 (232,490) (232.490) $ (11.001) CITY OF SAN RAFAEL. CALIFORNIA DEBT SERVICE FUNDS COMBINING BALANCE SHEET JUNE 30,1999 ASSETS Cash and investments Cash with fiscal agent Taxes receivable Assessments receivable -deferred TOTAL ASSETS LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Deferred assessments receivable Total Liabilities Fund Balances: Reserved for bond redemption Unreserved: Designated for construction Unreserved and undesignated Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES EAST FRANCISCO BOULEVARD ASSESSMENT DISTRICT $ 13,701 $ \3.701 $ 13,701 13.701 $ \3,701 77 PEACOCK GAP ASSESSMENT DISTRICT $460,417 1,000 261.515 $ 722.932 $ 261.515 261.515 120,250 341.167 461.417 $ 722.932 1915 ACT BONDS $ 67,387 $ 67.387 $ 67,387 67,387 $ 67.387 MARIPOSA ASS ESS;'v1 ENT DISTRICT $ 34.-1-35 186 25.-1-40 $ 60.061 $ 25.-1-40 25.440 11,684 22.937 34.621 $ 60.061 1997 REASSESSMENT DISTRICT $ - 2,397 $ 2.397 $ - 2,397 2.397 $ 2.397 CITY OF SAN RAFAEL, CALIFORNIA DEBT SERVICE FUNDS COMBINING BALANCE SHEET JUNE 30,1999 1997 FINANCING AUTHORITY REVENUE BONDS $ 530,700 357,119 2,211 651.768 $ 1.541.798 $ 651.768 651.768 357,119 532.911 890.030 $ 1.541.798 1992 AGENCY REFUNDING BONDS $ .., .J $ .., .J $ 1,402 1,402 3 ( 1,402) ( 1,399) $ 3 78 1995 AGENCY BONDS $ 631,469 $ 631.469 $ 1,530 1,530 629,939 629.939 $ 631.469 TOTAL $ 1,039,253 1,058,375 3,397 938.723 $ 3.039.748 $ 2,932 938.723 941.655 I, I 88,779 13,701 895.613 2.098.093 $ 3.039.748 CITY OF SAN RAFAEL. CALIFORNIA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1999 REVENUES : Taxes and special assessments Uses of money and property Total Revenues EXPENDITURES: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Proceeds from issuance of bond Bond issuance costs EAST FRANCISCO BOULEVARD ASSESSMENT DISTRICT $ Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING SOURCES (USES) FUND BALANCES -JULY I, 1998 FUND BALANCES -JUNE 30, 1999 13.701 $ 13.701 79 PEACOCK GAP ASSESSMENT DISTRICT $ 224,473 21. 780 246.253 215,000 89.956 304.956 (58.703) (2,923) (2.923) (61,626) 523.043 $461.417 1915 ACT BONDS $ 2,596 2.596 4.000 473 4.473 ( 1.877) (1,877) 69 .264 $ 67.387 MARIPOSA ASSESSMENT DISTRICT $ 26,742 1.65' 28.394 20.000 13.0' 1 33.021 (4.6'7) (l81 ) (181 ) (~,808) 39.429 $ 34.621 CITY OF SAN RAFAEL, CALIFORNIA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30. 1999 1997 1997 FINANCING REASSESSMENT AUTHORITY DISTRICT REVENUE BONDS $ -$ 698,693 35.345 734.038 469,000 317.604 786.604 (52.566) (5,596) (5.596) (58,162) 2,397 948.192 $ 2.397 $ 890.030 199:2 AGENCY REFUNDING BONDS $1,426,862 186 1.427.048 430,000 1.001.136 1.431.136 ( 4,088) 2,677 2.677 (1,411) 12 $ ( 1.399) 80 1995 AGENCY BONDS $630,291 82 630.373 185,000 451.813 636,813 (6,440) 4,906 4.906 (1,534) 631.473 $ 629.939 TOTAL $ 3,009,657 59.045 3.068.702 1,323,000 1.874.003 3.197.003 (128.301) 7,583 (8,700) ( 1.1 17) (129,418) 2.227.511 $ 2.098.093 CITY OF SAN RAFAEL, CALIFORNIA PEACOCK GAP ASSESSMENT DISTRICT FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 BUDGET REVENUES: Taxes and special assessment $ 222,615 Uses of money and property 10.000 Total Revenues 232.615 EXPENDITURES: Principal retirement 215,000 Interest and fiscal charges 90.485 Total Expenditures 305.485 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (72.870) OTHER FINANCING SOURCES (USES) Operating transfers -Out (2.923) Total Other Financing Sources (Uses) (2,923) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING SOURCES (USES) $ (75.793) FUND BALANCES -JUL Y 1, 1998 HJND BALANCES -JUNE 30, 1999 81 VARIANCE FAVORABLE ACTUAL (UNFAVORABLE) $224,473 $ 1,858 21.780 11. 780 246.?53 13.638 215,000 89.956 529 304.956 529 (58.703) 14.167 (2.923) (2.923) (61,626) $14.167 523.043 $461.417 CITY OF SAN RAFAEL, CALIFORNIA 1915 ACT BONDS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30 , 1999 REVENUES: Taxes and special assessment Total Revenues EXPENDITURES : Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER FINANCING SOURCES (USES) FUND BALANCES -JUL Y 1, 1998 FUND BALANCES -JUNE 30, 1999 BUDGET $ 4,000 2.000 6.000 $ (6.000) 82 VARIA0iCE FAVORABLE ACTUAL (UNFAVORABLE) $ 2.596 2.596 4,000 473 4.473 (1,877) 69.?64 $ 67.387 $ 2.596 2.596 1.527 1.527 $4.123 CITY OF SAN RAFAEL, CALIFORNIA MARIPOSA ASSESSMENT DISTRICT FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 REVENUES: Taxes and special assessment Uses of money and property Total Revenues EXPENDITURES: Debt Service: Principal retirement Interest and fiscal charges Total Expenditures DEFICIENCY OF REVENUES UNDER EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES -JUL Y 1, 1998 FUND BALANCES -JUNE 30, 1999 BUDGET $27,598 1.7 00 28.798 20,000 P.811 32.811 (4.013) (181) (181) $ (4.194) 83 ACTUAL $26,742 1.652 78.394 20,000 13.07 1 33.021 (4.627) (181) (181) (~,808) 39.479 $ 34.621 VARIANCE FAVORABLE CUNF A VORA.BLE) $(856) 452 (404) PI0) PI0) (614) $(61~) CITY OF SAN RAFAEL, CALIFORNIA 1997 FINANCING AUTHORITY REVENUE BONDS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30. 1999 REVENUES: Taxes and special assessment Uses of money and property Total Revenues EXPENDITURES: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES FUND BALANCES -JULY 1, 1998 FUND BALANCES -JUNE 30,1999 BUDGET $ 698,986 3.300 702.286 469,000 320.406 789.406 (87.120) (5.596) (5.596) $ (92.716) 84 ACTUAL $ 698,693 35.345 734.038 469,000 317.604 786.604 (5 7 .566) (5.596) (5.596) (58,162) 948.192 $ 890.030 VARIA01CE FAVOR.-\BLE (UNFAVOR.-\BLE) $ (293) 32.045 31.752 2.802 ? .80'"' 34.554 $34.554 CITY OF SAN RAFAEL, CALIFORNIA 1992 AGENCY REFUNDING BONDS FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 REVENUES: Ta.xes and special assessment Uses of money and property Total Revenues EXPENDITURES: Principal retirement Interest and fiscal charges Total Expenditures EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUN D BALA0ICES -JUL Y 1, 1998 FUND BALANCES -JUNE 30, 1999 BUDGET ACTUAL $ 1,416,056 $ 1,426,862 $ 15.000 186 1.431.056 1.4 7 7.048 430 ,000 1.001.056 1.431.056 430,000 1,001.136 1.431.136 (4.088) 7,677 2.677 (1,411) 12 $ (1.399) 85 VARIANCE FAVORABLE CUNF A VORABLE) $ 10,806 04.814) (4.008) (80) (80) (4.088) 7.677 2.677 $ (1.411) CITY OF SAN RAFAEL, CALIFORNIA 1995 AGENCY BONDS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 REVENUES: Taxes and special assessment Uses of money and property Total Revenues EXPENDITURES: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES -JUL Y 1, 1998 FUND BALANCES -JUNE 30, 1999 BUDGET $ 635,000 500 $ 635.500 185,000 450.378 635.378 122 122 86 VARL-\0iCE FAVORABLE ACTUAL (UNFAVORABLE) $ 630,291 82 630.373 185,000 451.813 636.813 (6.440) 4.906 4.906 (1,534) 631.473 $ 629.939 $(4,709) (418) (5.117) ( 1.435) ( 1.435) (6.562) 4.906 4.906 $(1.656) ASSETS Cash and investments Cash with fiscal agent Accounts receivable Taxes receivable Interest receivable Loans receivable Due from other funds CITY OF SAN RAFAEL, CALIFORNIA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET JUNE 30, 1999 CAPITAL BEDROOM OPEN SPACE IMPROVEMENT TAX $ 525,856 $ 1,293,251 $ 140,524 29.974 TOTAL ASSETS $ 525.856 $1.293.251 $ 170.498 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Deferred revenue Total Liabilities Fund Balances: Reserved for: Encumbrances Loans Projects Unreserved: Designated for : Redevelopment Construction Undesignated $ $ $ 6,020 6.020 1,293,251 525,856 164,478 ASSESSMENT DISTRICTS $ 280,534 12,024 $ 292.558 $ 20,478 272,080 Total Fund Balances ---=:5-=2.=.,;5 ."",8"",5-".,6 ___ ----!..;1.""'2"'-93~.=2.::..5 .... I __ ---'1....:::6....:..4:....:.4...:..7.:::..8 __ ----'2=9:....::2:..:.;.5::,;:5=8 TOTAL LIABILITIES AND FUND BALANCES =$=5=2)=-.=8)=-6=======$=1.=2=93=.=25=1====~$=1=7=0=.4=9=8=====$=2=92=.=5)=-8 87 PARK I 985 CAPITAL CAPITAL PROJECT AND PROJECTS ADMINISTRATION $ 65,974 $ 20,404 36,000 21,754 $ 101.974 $ 42.158 $ $ 64,185 65,974 36.000 101.974 64.185 (22.077) (22.027) $ 101.974 $ 42.158 LOW AND MODERATE INCOME HOUSING $ 1,868,150 452,067 49,238 325 ,536 $ 2.694.991 $ 4,429 4,429 325,536 2,365,026 2.690.562 $2.694.991 1992 BONDS 1995 BONDS CAPITAL CAPITAL PROJECT PROJECT $ 26,177 $3,291,041 355,108 722.063 $ I. I 03.348 $3.292.041 $ 56,495 $ 24,281 105,572 56.495 129.853 1.046.853 3 ,162,188 1.046.853 3.162.188 $ 1.103.348 $3.291.041 88 1999 BONDS CAPITAL PROJECT $ 12,614, 103 $12.6 I 4. I 03 $ 21.614. I 03 22.614.103 TOTAL $ 7.5 12.91 1 22.614.103 424,886 452,067 49,238 325.536 75' .03 7 $32.130.778 $ 149,390 171,546 42.020 362.956 20,478 325,536 1,293,25 I 29.188.170 962.414 (22.027) 31.767.822 $22.614.103 $32.130.778 CITY OF SAN RAFAEL, CALIFORNIA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1999 CAPITAL BEDROOM OPEN SPACE IMPROVEMENT TAX REVENUES: Taxes and special assessments $ $ $ 13,393 Uses of money and property 20,208 49,589 6,836 Intergovernmental Charges for current services Other revenues 7.000 Total Revenues 20208 49.589 27.229 EXPENDITURES: Community development Culture and recreation Capital Outlay 3.330 Total Expenditures 3.330 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 20.208 46,259 27.229 OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Proceed from sale of land Cost of land sold Proceeds from issuance of bond Bond issuance costs Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES) 20,208 46,259 27,229 FUND BALANCES -JUL Y 1, 1998 505,648 1,246,992 137,249 PRIOR PERIOD ADJUSTMENT FUND BALANCES -JUNE 30, 1999 $ 525.856 $ 1.293.251 $ 164.478 89 ASSESSMENT DISTRICTS $ 232.657 232.657 (232.657) (232,657) 525,215 $ 292.558 PARK 1985 CAPITAL CAPITAL PROJECT AND PROJECTS ADMINISTRA nON $ $ 7,577 34,097 487 26.668 91.442 34.245 126.026 983,421 27.330 27.842 27.330 1,011.263 6.915 (885.237) 8,568 (80,000) 2,052,607 (2,004,514 ) (71.432) 48.093 (64,517) (837,144) 64,517 815,117 $ $ (22.027) LOW AND MODERATE INCOME HOUSING $ 452,067 173,353 2.595 628.015 218,751 92.440 311,191 316.824 316,824 2,373,738 $2.690.562 1992 BONDS 1995 BONDS CAPITAL CAPITAL PROJECT PROJECT $ $ 113,558 80,520 242.889 159 323.409 113.717 155.427 1.144.072 155,427 1.144.072 167.982 (1.030.355) 120,000 (2,678) ( 124,905) 117.322 ( 124.905} 285,304 ( 1.155,260) 39,486 4,423,020 722.063 ( 1 05.572) $ 1.046.853 $ 3.162.188 90 1999 BONDS CAPITAL PROJECT $ 23,504,004 (889.901) 22.614.103 22,614,103 $ 22.614.1 03 TOTAL $ 465,460 371,121 114,617 487 370.753 1.322.438 1,202,172 1.683.098 2.885.270 ( 1.562.832) 128,568 (207,583) 2,052,607 (2,004,514 ) 23,504,004 (889.901) 22.583.181 21.020.3·N 10.130,982 616.491 $ 31.767.822 CITY OF SAN RAFAEL, CALIFORNIA ASSETS: Cash and investments Total Assets Liabilities and Retained Earnings LIABILITIES: Accounts payable Claims payable Total Liabilities RETAINED EARNINGS: Unreserved and designated Total Retained Earnings Total Liabilities and INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET JUNE 30, 1999 BUILDING LIABILITY WORKERS' DENTAL MAINTENANCE INSURANCE COMPENSATION INSURANCE TOTAL $ 60.792 $ 1.156.445 $ 1.557.726 S 24.489 $ 60.792 $ I.I56.445 $ 1.557.726 $ 74.489 $ 7.799.452 $ $ 19,001 $ 1,041 $ 60 $ 20,102 599.198 \.558,927 2.158.125 618.199 1.559.968 60 2.178.227 60.79') 538.246 (" ,247) 24.429 621:n 5 60.79') 538.246 (2.242) 24.479 62 J.?25 $ 1.156.445 $ 1.557.726 $ 24.489 $ 2.799.452 Retained Earnings =$=6=:0.:=79:=2===========================::::::::::=================:::::::::::= 91 CITY OF SAN RAFAEL, CALIFORNIA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 BUILDING LIABILITY WORKERS' DENTAL MAINTENANCE INSURANCE COMPENSATION INSURANCE TOTAL Operating Revenues : Charges for current serv ices $ 58,526 $ 807,252 $ 756,476 $326,150 S 1.948'-+04 Refunds 209,551 10.691 220.242 Total Operating Revenues 58.526 1.016 .803 767. I 67 326.150 2.168.646 Operating Expenses : Insurance premiums and claims 562 .856 971.656 358.995 1.893.507 Total Operating Expenses 561.856 971.656 358 .995 1.893.507 Operating Income (Loss) 58,516 453 .947 (104 .4 89) (3').845) ?75. I 39 Non-Operating Revenues: Investment income 2,266 38,010 43,287 87 83.650 Other non-operating revenues 1.803 1.803 Total Non-Operating Revenues 2.266 38,010 45.090 87 85.-+53 Net Income 60,792 491 ,957 (159 ,399) (32,758) 360,592 Retained Earnings -July I, 1998 46 .289 157.157 57.187 260.633 Retained Earnings -June 30, 1999 $ 60.792 $ 538,246 $ (1.242) $ 24.429 $ 621.225 91 CITY OF SAN RAFAEL. CALIFORNIA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED JUNE 30, 1999 BUILDING LIABILITY WORKERS' MAINTENANCE INSURANCE COMPENSATION Cash Flows From Operating Activities: Operating Income (Loss) $ 58,526 $ 453.947 $ (20--1.,489) Change in Assets and Liabilities: Increase in accounts payable 10,952 (4,534) Increase (Decrease) in contract payable (206.436) 455.820 Net Cash Provided By Operating Activities 58.526 258.463 246.797 Cash Flows from Non-Capital Financing Activities: Non-operating rev . :ues 1.803 Net Cash Provided By Non-Capital Financing Activities 1.803 Cash Flows from Investing Activities : Interest and dividends on investments 2.266 38.010 43.287 Net Cash Provided By Investing Activities 2.266 38,010 43.287 Net Increase (Decrease) in Cash and Cash Equivalents 60,792 296,473 291,887 Cash and Cash Equivalents -July I, 1998 859.972 1.265,839 Cash and Cash Equivalents -June 30, 1999 $60.792 $ 1,156.445 $ 1.557.726 93 DENTAL INSURANCE TOTAL $ (32,8--1.5) S 275,139 60 6,478 249.38...J. (3 7 .785) 531.001 1.803 1.803 87 83 .650 87 83.650 (32,698) 616,454 57.187 2.182.998 $ 24.489 $ 2.799.452 CITY OF SAN RAFAEL, CALIFORNIA TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET JUNE 30, 1999 EXPENDABLE TRUST FUNDS BUSINESS LIBRARY RECREATION IMPROVEMENT FIDUCIARY FIDUCIARY TOTAL ASSETS Cash and investments $ 5.255 $ -1-11.692 $ 28.704 $ 445.651 TOTAL ASSETS $ 5.255 $ 411.692 $ 28.704 $ 445.651 LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable $ -$ 206 $ $ 206 Total Liabilities 206 206 FUND BALANCES: Reserved for: Petty cash 3,000 3,000 Unreserved: Designated for projects 2.255 411.486 28.704 442.445 Total Fund Balances 5.255 411,486 28.704 445,445 TOTAL LIABILITIES AND FUND EQUITY $ 5.255 $411.692 $ 28.704 $ 445.651 94 CITY OF SAN RAFAEL, CALIFORNIA EXPENDABLE TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1999 EXPENDABLE TRUST FUNDS BUSINESS LIBRARY RECREATION IMPROVEMENT FIDUCIARY FIDUCIARY TOTAL REVENUES: Uses of money and property 1 ntergovernmental Other revenues Total Revenues EXPENDITURES: Community development Culture and recreation Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES FUND BALANCES -JULY I, 1998 FUND BALANCES -JUNE 30, 1999 $ 35,000 15.242 50.242 51 ,747 51.747 ( 1,505) 6.760 $ 5.255 95 $ 22,550 $ 22 .550 3.133 3.133 19,417 392.069 28.704 $411.486 $ 28.704 $ 22 .550 35,000 15.242 72.792 51.747 3 .133 54.880 17,912 427.533 $445.445 CITY OF SAN RAFAEL, CALIFORNIA BUSINESS IMPROVEMENT FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30. 1999 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVO~~BLE) REVENUES: Intergovernmental Other revenue Total Revenues EXPENDITURES: Culture and recreation Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES -JULY 1, 1998 FUND BALANCES -JUNE 30, 1999 $35 ,000 17.000 52.000 58.000 58.000 $ (6.000) 96 $35,000 15./42 50.242 51.747 51.747 (1,505) 6.760 $ 5.255 $ (1.758) (1.758) 6.253 6.253 $ 4.495 CITY OF SAN RAFAEL, CALIFORNIA LIBRARY FIDUCIARY FUND ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1999 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Uses of money and property Other revenue Total Revenues EXPENDITURES: Culture and recreation Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES -JULY I, 1998 FUND BALANCES -JUNE 30, 1999 $ 12,580 $ 22.550 $ 9,970 12.580 ?2.550 9.970 30.000 3.133 26.867 30.000 3.133 26.867 $ (17.420) 19,417 $36.837 392.069 $411,486 97 c. G. UHLENBERG & co. LLP CERTIFIED PUBLIC ACCOUNTANTS ROBERT E. BARSANTI, C.P.A. PEGGY H. CHEN, C.P.A. JEFFREY J . IRA, C.P.A. KATHERINE C. WONG, C PA February 11, 2000 Ms. Cindy Mosser 1400 Fifth Avenue P. O. Box 151560 San Rafael, CA 94915-1560 Dear Ms. Mosser: Enclosed are five (20) bound and one (l) unbound copies of our report dated September 23, 1999, covering our audit of the general purpose financial statement of the City of San Rafael for the fiscal year ended June 30, 1999. Very truly yours, C. G. UHLENBERG & CO. LLP By ~f:!f Encl. 647 Veterans Boulevard, Redwood City, CA 94063 Phone (650) 365-2323 • (408) 733-9944 • (510) 353-0330 Fax (650) 365-8394