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1996-1997 General Purpose Financial Statementsc. 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 February 11, 1997 Mr. Kenneth Nordhoff Director of Administrative Services City of San Rafael 14QO -5th Avenue P. O. Box 151560 San Rafael, CA 94915-1560 Dear Ken: Via Federal Express Enclosed is one original and ten copies of our management letter dated December 13, 1996, covering our audit of the general purpose financial statements of the City of San Rafael for the fiscal year ended June 30, 1996. Please let us know if you need any additional copies. Thanks! Very truly yours, C. G. UHLENBERG & CO. JJI/jm Encl. 647 Veterans Boulevard, Redwood City, CA 94063 Phone (415) 365-2323 • (408) 733-9944 • (510) 353-0330 Fax (415) 365-8394 ( c. G. UHLEN BERG & co. LLP CERTIFIED PUBLIC ACCOUNTANTS ROBERT E. BARSANTI . C,PA PEGGY H. CHEN . C P.A. J EFF REY J, IRA . C.P,A December 13, 1996 Rodney Gould, City Manager City of San Rafael 1400 Fifth Avenue San Rafael, California 94915-0060 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 eagerness 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 , 1996, 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 internal 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 (415) 365-2323 • (408) 733-9944 • (510) 353-0330 Fax (415) 365-8394 \ While 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 of the City. Very truly yours, C. G. UHLENBERG & CO. LLP By JJI/jm Encl. cc: Kemleth Nordhoff, Director of Administrative Services 2 ( CITY OF SAN RAFAEL CURRENT YEAR FINDINGS AND RECOMMENDATIONS JUNE 30, 1996 BUDGET AND ACCOUNTING Finding -During our review of the City's budget, we noted that the accounting principles used in budget preparation (cash basis) was not the same as those used in preparing the financial statements (GAAP basis). In addition, the City has not fully implemented all accounting pronouncements (GASBs) in any effort to keep these items closer together. Recommendation -We recommend the City prepare its budget using the GAAP basis of accounting principles and that the City fully implement all accounting pronouncements applicable. Finding -The City utilizes many accounts called "zero object accounts" to keep track of various revenues and expenditures. At year end these accounts are grouped together under different special revenue fund revenue and expenditure categories. These accounts are not a part of the City's normal budgetary process. Recommendation -We recommend all accounts of the City are brought under the control of the Council as part of the normal budgetary process. Currently, these accounts circumvent the City's standard budgetary controls. Finding -Currently the City maintains sub ledger details for various accounts that do not agree to the general ledger. These accounts are analyzed and adjusted prior to entering them into the general ledger. Recommendation -We recommend that the subledgers agree exactly to the general ledger and that any adjustments to these accounts be properly established as allowances or reserves. CASH RECEIPTS Finding -During our testing of cash receipts we noted that there was one receipt for the mechanical permits that was charged the minimum fee instead of the actual fee. The actual fee should be calculated and then the higher of the minimum fee or the actual fee should be charged. Recommendation -We recommend that the actual fee be calculated and then compared with the minimum fee. Thus the city will be ensured that the correct fee is charged. BANK RECONCILIATION Finding -During our review of the City's internal controls, we noted that bank reconciliations are prepared by a staff who also participate in the cash receipts function. Recommendation -We recommend bank reconciliations be prepared by someone other than persons who participate in the receipt or disbursement of cash. 3 CITY OF SAN RAFAEL CURRENT YEAR FINDINGS AND RECOMMENDATIONS JUNE 30, 1996 INVESTMENTS Finding -During our review of the City's internal controls, we noted that only one person's authorization is required for the release of securities from safekeeping. Recommendation -We recommend that the City require the authorization of more than one person for the release of securities from safekeeping. GANNLIMIT Finding -During our recalculation of the GANN Limit, we noted that there was an error in the original calculation. The City of San Rafael should have a second individual review the GANN Limit calculation before submitting it. Recommendation -We recommend a second review of the GANN Limit calculation before submitting. GRANT MANAGEMENT Finding -The City receives many grants each year from various federal, state and local agencies. Each department normally applies for these grants and has the responsibility to administer them. With respect to grant management, the individual departments are not communicating with the finance department so that all grant monies can be accounted for accurately. Our findings on the single audit report disclosed the problems that this can cause. Recommendation -We recommend that each department responsible for obtaining the grants coordinate with the finance department to ensure that: • accurate records are maintained • revenues, expenditures and receivables are monitored • all reports and claims for reimbursements are timely filed and reconciled CHILD DEVELOPMENT PROGRAM Finding -During our review of the attendance related to the Child Development Program, we noted the following: 1. two instances where the enrollment days were miscalculated. The net effect on the Child Days of Enrollment reported to the California Department of Education is one and a half (1-1/2) days less than the actual days of enrollment; 2. one instance where the attendance and fiscal report for school age community child care services was miscalculated. The net effect on the Child Days of 4 ( CITY OF SAN RAFAEL CURRENT YEAR FINDINGS AND RECOMMENDATIONS JUNE 30, 1996 Enrollment reported to the California Department of Education is a half (1/2) day more than the actual days of enrollment. Recommendation -We recommend that the enrollment days be calculated carefully and reviewed properly. Finding -During our review of the attendance related to the Child Development Program, we noted three (3) children whom were not recipients of protective services had over ten (10) "days in the best interest of the child". The net effect on Child Days of Enrollment reported to the California Department of Education is eleven (11) days more than the actual days of enrollment. Recommendation -We recommend the Child Development Program verify a child with over ten (10) "days in the best interest of the child" is a recipient of protective services before days of enrollment are credited. 5 CITY OF SAN RAFAEL STATUS OF PRIOR YEAR'S FINDINGS AND RECOMMENDATIONS INVENTORY Finding -During our review of the City's internal controls over inventories, we noted the following conditions: • The stores inventory room is not locked to prevent loss, theft or misuse. • No approved requisitions were required for release of inventory. • The annual physical inventories are not taken by someone other than the custodian. Recommendation -We recommend that the stores inventory room be locked whenever the custodian is not present, that inventories are released only on the basis of written and properly approved requisitions, and the annual inventory count be taken by someone independent of the custodian. Current status -The City closed its store inventory during FY95/96. This finding is no longer applicable. CHILD DEVELOPMENT Finding -During our review of the City's Child Development Program, we noted a letter dated November 8, 1994, addressed to the City of San Rafael from the California Department of Education regarding the Latch Key Grant for the 1992-93 fiscal year. One of the issues raised in the letter was whether the City of San Rafael had established a separate fund for the Latch Key Grant which is required by Education Code Section 8328. The City uses Fund 008 for the Child Development Programs. Department 6649, within Fund 008, is used to record revenue and expenditures for the Latch Key Grant. Although the City records revenue and expenditures separately for the Latch Key Grant, they are unable to produce a separate balance sheet and therefore they do not meet the State requirements of having a separate fund. Recommendation -We recommend that the City immediately establish a separate fund for the Latch Key Grant. Current status -Implemented Finding -During our review of the attendance related to the Child Development Program, we noted two instances where the enrollment days were miscalculated. The net effect on the Child Days of Enrollment reported to the California Department of Education is one day less than the actual days of enrollment. 6 ( CITY OF SAN RAFAEL STATUS OF PRIOR YEAR'S FINDINGS AND RECOMMENDATIONS Recommendation -We recommend that the enrollment days be calculated carefully and reviewed by another person. Current Status -Not implemented; repeat recommendation. CHILD DEVELOPMENT Finding -During our examination of the "Attendance and Fiscal Report for School Age Community Child Care Services," we noted the existence of clerical errors. For the reporting months ended September and December 1993 of Section II (Non-certified children) of the "Attendance and Fiscal Report for School Age Community Child Care Services," it was noted that the adjusted days of enrollment column was calculated incorrectly. This resulted in an overstatement of (Non-certified children) attendance of seventeen days for September and fifteen days for December. Recommendation -We recommend that the "Attendance and Fiscal Report for School Age Community Child Care Services" be reviewed for clerical accuracy after its completion. The benefit of the above recommendation will allow for proper reporting to the State, and saves time by not having the need to file amendments. Current status -Not implemented; repeat recommendation. Finding -During our examination of the monthly student attendance summary and student record file, we noted the existence of unexcused absences for several students. Recommendation -We recommend that the Child Development Program enforce the attendance requirement as specified by the grant requirements. Current status -Implemented. CASH RECEIPTS Finding -During our review of the City's internal control structure over cash receipts it was revealed that a listing of mail receipts was not prepared by the person opening the mail. The cause is due to the City'S limited staff size and volume of daily cash receipts. Recommendation -We recommend that the City consider implementing a policy and procedure to ensure that all mail cash receipts are listed on a daily basis, by the person opening the mail prior to the cash receipts being given to the person preparing the bank deposit. Current status -Not implemented; repeat recommendation. 7 CITY OF SAN RAFAEL STATUS OF PRIOR YEAR'S FINDINGS AND RECOMMENDATIONS CASH DISBURSEMENTS Finding -During our review of the City's internal control structure over cash disbursements, we noted two disbursements that did not have invoices attached to the check claim form. Notes for the disbursement were made on the check claim form by the department head. Recommendation -We recommend that the City consider implementing a policy and procedure to ensure that all check claim forms are supported by invoices. Current status -Implemented. 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. 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. Management would like to point out that this is a common problem, not only of other finance departments, but of other departments within the City. Status -The city is still facing a decrease in personnel and this project is forced to be postponed. 8 ( 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 lmauthorized 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. 9 ( CITY OF SAN RAFAEL. CALIFORNIA GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 1997 * * * ( GENERAL PURPOSE FINANCIAL STATEMENTS For The Fiscal Year Ended June 30, 1997 CITY OF SAN RAFAEL, CALIFORNIA P. O. Box 151560 1400 Fifth Avenue San Rafael, California 94915-1560 Prepared by the Administrative Services Department CT~Y OF SAN RAFAEL. CALIFORNP -, GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 1997 TABLE OF CONTENTS FINANCIAL SECTION: PAGE NO. Independent Auditor's Report..................................................................................... I General Purpose Financial Statements: Combined Balance Sheet -All Fund Types and Account Groups........................ 2 - 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances -All Governmental Fund Types and Expendable Trust Funds ................................ ............. ......... .... ..... 6 - 7 Combined Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual (Budget Basis) -General, Special Revenue and Debt Service Funds............................................. ..... ..... 8 - 9 Proprietary Fund Type (Discretely Presented Component Unit) Statement of Revenues, Expenses and Changes in Fund Equity ......... .......... 10 Statement of Cash Flows .............. ................. ............ ........................ ............ 11 Notes To General Purpose Financial Statements........................................................ 12 -43 Supplementary Information: Special Revenue Funds: Combining Balance Sheet........... ............. ......... ........................................ ...... 44 -47 Combining Statement of Revenues, Expenditures and Changes in Fund Balances........................................................................ 48 -51 Recreation Revolving Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual .......... 52 Parking Services Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual.......... 53 Gas Tax Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual ............................... 54 Childcare Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual................ 55 Equipment Replacement Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual.......... 56 Household Hazmat Facility Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual.......... 57 Library Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual............................... 58 CITY OF SAN RAFAEL. CALIFOWTT " GENhRAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 1997 TABLE OF CONTENTS (Continued) Public Safety Fund -Statement of Revenues, Expenditures and PAGE NO. Changes in Fund Balances -Budget (Cash Basis) and Actual ................ 59 Stormwater Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual ................ 60 Traffic and Housing Mitigation Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual ....................................................... ......................................... 61 Grants Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual ............................... 62 Debt Service Funds: Combining Balance Sheet .............................................................................. . Combining Statement of Revenues, Expenditures and Changes in Fund Balances ....................................................................... . Kerner Boulevard Assessment District Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual ............................................................................................... . Sun Valley Assessment District Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual ............................................................................................... . Peacock Gap Assessment District Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual ............................................................................................... . 1915 Act Bonds Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual ............... . Civic CenterlNorthgate Assessment District Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual .......................................................................... . Mariposa Assessment District Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual ............................................................................................... . 1997 Reassessment Bonds Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual ......... . 1997 Financing Authority Revenue Bonds Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual ............................................................................................... . 1992 Agency Refunding Bonds Fund -Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (Cash Basis) and Actual ............................................................................................... . 64-66 68 -70 71 72 73 74 75 76 77 78 79 CJTY OF SAN RAFAEL, CALIFORNJ ~ \ GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 1997 TABLE OF CONTENTS (Concluded) 1995 Agency Refunding 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 ................................................................ . Trust and Agency Funds: Combining Balance Sheet .............................................................................. . Expendable Trust Funds -Combining Statement of Revenues, Expenditures and Changes in Fund Balances ......................................... . Statement of Changes in Assets and Liabilities -Agency Fund .................... . PAGE NO. 80 82 -83 84 -85 86 -87 88 -89 90 GENERAL PURPOSE FINANCIAL STATEMENTS Year Ended June 30, 1997 FINANCIAL SECTION CITY OF SAN RAFAEL, CALIFORNIA ( c. G. UHLENBERG & co. LLP CERTIFIED PUBLIC ACCOUNTANTS ROBERT E. BARSANTI . C.P A. PEGGY H. CHEN , C ,P A JEFFREY J. IRA . C.P .A. INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council of the City of San Rafael San Rafael, California We have audited the accompanying general purpose financial statements of the City of San Rafael, California (the City), as of and for the fiscal year ended June 30, 1997, 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 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-I33, 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 fmancial 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, 1997, 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 25, 1997 on our consideration of the City of San Rafael's internal control structure and a report on September 25, 1997 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 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. September 25, 1997 Redwood City, California 647 Veterans Boulevard, Redwood City, CA 94063 Phone (650) 365-2323 • (408) 733-9944 • (510) 353-0330 Fax (650) 365-8394 , ITY OF SAN RAFAEL. CALIFOR. . .lA COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1997 FIDUCIARY FUND TYPES GOVERNMENTAL FUND TYPES EXPENDABLE SPECIAL DEBT CAPITAL TRUST AND GENERAL REVENUE SERVICE PROJECTS AGENCY ASSETS AND OTHER DEBITS Assets: Cash and investments (Note 2) $5,532,695 $14,108,143 $ 895,995 $14,236,261 $ 448,882 Cash with fiscal agent (Note 2) 809,098 Restricted cash 9,138,223 Accounts receivable 204,106 436,639 1,279,056 Taxes receivable 2,422,481 329,357 Grants receivable 204,808 Interest receivable 328,713 121,330 Assessment receivable 1,520,566 Loans receivable (Note 7) 387,684 100,000 380,268 Due from other funds (Note 6) 103,270 58,000 58,076 24,342 Prepaid expenses Land held for resale 2,004,514 Other current assets General fixed assets (Note 4) 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 obligations TOTAL ASSETS AND OTHER DEBITS ~8,978,949 ~ 14,907,590 ~3,225,659 ~ 18,408,862 ~9,611,447 See accompanying notes to general purpose financial statements. 2 ACCOUNT GROUPS GENERAL GENERAL FIXED ASSETS LONG-TERM DEBT $ $ 34,815,854 1,703,818 30,494,758 2,474,288 $34,815,854 $ 34.672,864 PRIMARY GOVERNMENT TOTALS (MEMORANDUM ONLY) $ 35,221,976 809,098 9,138,223 1,919,801 2,751,838 204,808 450,043 1,520,566 867,952 243,688 2,004,514 34,815,854 1,703,818 30,494,758 2.474,288 $ 124,621,225 3 ( REPORTING ENTITY TOTALS COMPONENT (MEMORANDUM UNIT ONLY) $ 466,008 $ 35,687,984 809,098 467,084 9,605,307 1,919,801 2,751,838 204,808 1,671 451,714 1,520,566 867,952 243,688 13,797 13,797 2,004,514 1,595 1,595 34,815,854 23,065,846 23,065,846 56,443 56,443 1,703,818 30,494,758 2,474.288 $ 24,072,444 $ 148,693,669 (Continued) TV OF SAN RAFAEL. CALIFORl\ .. COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1997 FIDUCIARY FUND TYPES GOVERNMENTAL FUND TYPES EXPENDABLE SPECIAL DEBT CAPITAL TRUST AND GENERAL REVENUE SERVICE PROJECTS AGENCY LIABILITIES AND FUND EQUITY Liabilities: Accounts payable $1,021,200 $ 507,373 $ $ 918,786 $ 21,086 Connection fees payable Developer bonds payable 60,042 Insurance claims payable 1,949,188 Interest payable Due to other funds (Note 6) 45,449 198,239 Deferred compensation payable (Note 14) 9,138,223 Deposits 100,000 Deferred revenue 21,726 1,521,841 58,000 Capital leases (Note 8) Compensated absences (Note 5) Certificates of participation Notes payable (Note 5) Special assessment debt (Note 5) Bonds payable (Note 5) Total Liabilities 3,030,430 574,548 1,521,841 1,275,025 9,159,309 Fund Equity and Other Credits: Investment in general fixed assets Contributed capital Retained earnings: Reserved Unreserved Total Retained Earnings Fund Balances (Note 9): Reserved 1,362,155 1,462,695 1,690,117 2,456,646 452,138 Unreserved: Designated 11,209,610 13,701 14,677,191 Undesignated 4,586,364 1,660,737 Total Fund Balances 5,948,519 14,333,042 1,703,818 17,133,837 452,138 Total Fund Equity and other credits 5,948,519 14.333,042 1,703,818 17,133,837 452,138 TOTAL LIABILITIES AND FUND EQUITY ~8,978,949 ~ 14,907,590 ~3,225,659 ~ 18,408,862 ~9,611,447 See accompanying notes to general purpose financial statements. 4 ACCOUNT GROUPS GENERAL GENERAL FIXED ASSETS LONG-TERM DEBT $ $ 19,576 2,474,288 169,000 1,970,000 30,040,000 34,672,864 34,815,854 34,815,854 $ 34,815,854 $ 34.672,864 PRIMARY GOVERNMENT TOTALS (MEMORANDUM ONLY) $ 2,468,445 60,042 1,949,188 243,688 9,138,223 100,000 1,601,567 19,576 2,474,288 169,000 1,970,000 30,040,000 50,234,017 34,815,854 7,423,751 25,900,502 6,247,101 39,571,354 74,387,208 $124,621,225 5 ( REPORTING ENTITY TOTALS COMPONENT (MEMORANDUM UNIT ONLY) $ 145,550 $ 2,613,995 1,000 1,000 60,042 1,949,188 124,123 124,123 243,688 9,138,223 100,000 1,601,567 19,576 2,474,288 4,429,553 4,429,553 169,000 1,970,000 110,000 30,150,000 4,810,226 55,044,243 34,815,854 8,321,036 8,321,036 107,555 107,555 10,833,627 10,833,627 10,941,182 10,941,182 7,423,751 25,900,502 6,247,101 39,571,354 19,262,218 93,649.426 $ 24,072,444 $ 148,693.669 (Concluded) :TY OF SAN RAFAEL. CALIFORt .• A 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, 1997 GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE DEBT SERVICE CAPITAL REVENUES: Taxes and special assessments $ 22,521 ,405 $ 670,543 $ 2,712,691 $ 344,276 Licenses and penn its 584,946 628,695 Fines and forfeitures 533,426 Uses of money and property 539,847 796,866 105,197 752,566 Intergovernmental 3,741,659 3,608,324 4,194,350 Charges for current services 1,939,389 2,973,162 2,810 Other revenues 396,712 1,609,338 4,335 71,978 Total Revenues 30,257,384 10,286,928 2,822,223 5,365,980 EXPENDITURES: Current: General government 5,063,492 1,227,792 Public safety 16,995,433 421,825 Public works and parks 6,256,408 35,759 Community development 927,646 Culture and recreation 1,613,266 2,891,759 51,085 Capital Outlay 136,016 5,299,148 9,040,526 Debt Service: Principal retirement 6,925,650 Interest and fiscal charges 2,336,374 Total Expenditures 30,064,615 9,876,283 9,262,024 10,019,257 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 192,769 410,645 (6,439,801) (4,653,277) OTHER FINANCING SOURCES (USES): Operating transfers -In 971,702 1,064,532 6,280,196 1,086,210 Operating transfers -Out (1,149,918) (1,423,576) (6,510,075) (326,280) Bond proceeds 5,250,000 Bond issuance cost (196,413) Total Other Financing Sources (Uses) (178,216) (359,044) 4,823,708 759,930 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 14,553 51,601 (1,616,093) (3,893,347) FUND BALANCES AT BEGINNING OF YEAR 7,904,861 14,294,595 3,213,625 21,070,370 PRIOR PERIOD ADJUSTMENTS (1,970,895) (13,154) ]06,286 (43,186) FUND BALANCES AT END OF YEAR $ 5,948,519 $14.333,042 $ 1,703.818 $ ] 7,133,837 See accompanying notes to general purpose financial statements. 6 FIDUCIARY FUND TYPES EXPENDABLE TRUST $ 25,675 64,342 22,866 112,883 80,493 28,645 109,138 3.745 56,074 (48,865) 7.209 10,954 441,184 $452.138 PRIMARY GOVERNMENT TOTALS (MEMORANDUM ONLY) $ 26,248,915 1,213,641 533,426 2,220,151 11,608,675 4,915,361 2,105,229 48,845,398 6,291,284 17,417,258 6,292,167 1,008,139 4,584,755 14,475,690 6,925,650 2,336.374 59,331,317 (10.485,919) 9,458,714 (9,458,714) 5,250,000 (196,413) 5,053,587 (5,432,332) 46,924,635 ( 1 ,920,949) $ 39,571,354 7 ( .TY OF SAN RAFAEL. CALIFORhuA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL (BUDGET BASIS) GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1997 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 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 Bond proceeds Bond issuance costs Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) BUDGET $ 22,428,000 570,000 430,000 494,000 3,756,000 1,948,000 226,134 29,852,134 5,299,271 17,140,568 6,286,112 1,620,327 168,874 30,515,152 (663,018) EXPENDITURES AND OTHER FINANCING USES $ (663,018) FUND BALANCES AT BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENT ADJUSTMENTS FOR DIFFERENCES BETWEEN CASH BASIS AND MODIFIED ACCRUAL BASIS ADJUSTMENTS FOR FUNDS NOT BUDGETED FUND BALANCES AT END OF YEAR GENERAL FUND VARIANCE FAVORABLE ACTUAL (UNFAVORABLE) $22,183,494 667,934 476,726 540,193 4,165,688 2,027,048 397,807 30,458,890 5,039,535 16,915,367 6,226,935 1,605,666 135,375 29,922,878 536,012 971,703 (1,149,918) (178,215) 357,797 7,904,861 (1,970,895) (343,244) $ 5,948,519 $ (244,506) 97,934 46,726 46,193 409,688 79,048 171 ,673 606,756 259,736 225,201 59,177 14,661 33,499 592,274 1.199,030 971,703 (1,149,918) (178,215) $ 1.020,815 See accompanying notes to general purpose financial statements. 8 ( SPECIAL REVENUE FUNDS DEBT SERVICE FUNDS VARIANCE VARIANCE FAVORABLE FAVORABLE BUDGET ACTUAL CUNF A VORABLE) BUDGET ACTUAL (UNFAVORABLE) $ 592,000 $ 584,657 $ (7,343) $ 2,350,083 $ 2,712,691 $ 362,608 610,000 627,887 17,887 193,820 687,954 494,134 80,020 105,197 25,177 2,818,599 3,207,787 389,188 2,642,677 2,687,931 45,254 1,055,686 1,217,333 161,647 4,335 4,335 7,912,782 9,013,549 1,100,767 2,430,103 2,822,223 392,120 686,225 674,842 11,383 692,966 383,193 309,773 1,060,000 788,144 271,856 2,993,631 2,906,908 86,723 11,229,396 5,452,907 5,776,489 6,937,650 6,925,650 12,000 2,323,342 2,336,374 (13,032) 16,662,218 10,205,994 6,456,224 9,260,992 9,262,024 (1,032) (8,749,436) ( 1 ,192,445) 7,556,991 (6,830,889) (6,439,801) 391,088 263,020 263,020 6,280,196 6,280,196 (447,393) (447,393) (6,510,075) (6,510,075) 5,250,000 5,250,000 (196,413) (196,413) (184,373) (184,373) 4,823,708 4,823,708 ~ (8,749,436) (1,376,818) ~7,372,618 ~ (6,830,889) (1,616,093) ~ 5,214,796 14,294,595 3,213,625 (13,154) 106,286 1,456,782 (28,363) $ 14.333.042 $ 1,703,818 9 lTY OF SAN RAFAEL, CALIFO~ ... A PROPRIETARY FUND TYPE -(DISCRETELY PRESENTED COMPONENT UNIT) STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQillTY FOR THE FISCAL YEAR ENDED JUNE 30, 1997 OPERATING REVENUES: Sewer charges Connection fees Total Operating Revenues OPERATING EXPENSES Sewage collection Sewage treatment Depreciation and amortization General and administrative Total Operating Expenses Operating income NON-OPERATING REVENUES (EXPENSES): Property taxes Special assessments -Bayside Acres Aid from governmental agencies Interest income Interest expense Other non-operating revenues Total Non-operating Revenues Net Income Add: depreciation expense on assets acquired by contributed capital Increase in retained earnings Retained earnings -beginning of year Retained earnings -end of year Contributed capital -beginning of year Less: depreciation expense accumulated Contributed capital-end of year Total Fund Equity ENTERPRISE FUND $ 3,868,864 35,783 3,904,647 1,145,614 1,829,000 720,825 152,580 3,848,019 56,628 397,096 52,543 33,285 58,723 (310,276) 1,300 232,671 289,299 286,478 575,777 10,365,405 10,941,182 8,607,514 (286,478) 8,321,036 ~ 19,262.218 See accompanying notes to general purpose financial statements. 10 C _ ... Y OF SAN RAFAEL, CALIFORN". PROPRIETARY FUND TYPE -(DISCRETELY PRESENTED COMPONENT UNIT) STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED JUNE 30, 1997 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 Net Cash Provided by Operating Activities CASH FLOWS FROM NON CAPITAL FINANCING ACTIVITIES: Property taxes Aid from governmental agencies Net Cash Provided by Noncapital Financing Activities CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Cash paid for capital acquisitions Proceeds from sale of fixed assets 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 Principal payments on Bayside Acres coupon bonds Interest paid on Bayside Acres coupon bonds Net Cash Used for Capital Financing Activities INVESTING ACTIVITIES: Interest received from Marin County pooled cash and account Net Cash Provided by Investing Activities Net Decrease in Cash and Cash Equivalents Cash and Cash Equivalents -Beginning of Year Cash and Cash Equivalents -End of Year ENTERPRISE FUND $ 56,628 720,825 3,925 45,756 827,134 397,096 33,285 430,381 (1,945,523) 1,300 52,543 20,830 (175,000) (302,795) (30,000) (6,630) (2,385.275) 37,998 37.998 (1,089,762) 2,022,854 $ 933,092 See accompanying notes to general purpose financial statements. I I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS ( 'ITY OF SAN RAFAEL. CALIFOR... .... A NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 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 (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. A. REPORTING ENTITY The City maintains a Council-Manager form of government and provides the following services: public safety (police and fire), public works, community development, library, parks, recreation, 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. 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 yearend. Blended Component Units: City of San Rafael Redevelopment Agency The City of San Rafael Redevelopment Agency (the Agency) was established pursuant to California Community Redevelopment Laws and is reported as if it were part of the primary government because the City Council has a continuing oversight responsibility for the Agency. The oversight responsibility is determined on the basis of budget adoption, taxing authority, funding and appointment of the governing board. The Agency's assets, liabilities, revenues and expenditures (other than those applicable to its fixed assets and long 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. Separately issued component unit financial statements can be obtained at the City of San Rafael, Finance Department, 1400 Fifth Avenue, San Rafael, California 94915. 12 ( c ..... Y OF SAN RAFAEL, CALIFORNLa NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1997 City of San Rafael Joint Powers Financing Authority The City of San Rafael Joint Powers Financing Authority (the Financing Authority) was created by the City of San Rafael and the Agency pursuant to Articles 1 and 2 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California for the purpose of assisting the financing and refinancing of certain redevelopment activities of the City and-the Agency. All of the Financing Authority's assets, liabilities, revenues and expenditures are blended into the Capital Projects Funds and the Debt Service Funds. The Financing Authority's long-term debts are blended into the General Long-Term Debt Account Group. Discretely Presented Component Unit: San Rafael Sanitation District The San Rafael Sanitary District (the District) was formed in 1947 under Section 4700 of the California Health and Safety Code to provide wastewater transmission over the southern two-thirds of the City of San Rafael and adjacent unincorporated areas. The City contracts with the District to maintain the collection systems in the unincorporated areas. The District is governed by a three member Board of Directors who are appointed to four year terms. The City Council of the City of San Rafael appoints two out of the three board members and has the ability to remove the two board members at will. The activities of the District are accounted for in a single enterprise fund. The District's assets, liabilities, revenues, expenses, results of operation and cash flows are discretely presented on the City's general purpose 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 13 TV OF SAN RAFAEL. CALIFORl, __ ~ NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 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. Proprietary Funds • Entemrise 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. Fiduciary Funds • Expendable Trust Funds are accounted for in the same manner as governmental funds. (All trust funds of the City of San Rafael are classified as expendable.) • Agency Funds are custodial in nature and do not involve the measurement of the results of operations. They are used to account for monies received 14 , ( c.& ... Y OF SAN RAFAEL, CALIFORNln NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS ruNE 30, 1997 by the City of San Rafael as an agent for individuals, other governments and other entities. Account Groups • The General Fixed Assets Account Group is used to maintain control and cost information on capital assets acquired to perform general government functions. • The General Long-Term Debt Account Group is used to record the unmatured principal of ta'{ allocation bonds, special assessment bonds, notes, compensated absences, the principal amount of future lease payments due under lease purchase agreements and other long-term liabilities . C. MEASUREMENT FOCUS All governmental funds 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 (Le., revenues and other financing sources) and decreases (Le., expenditures and other financing uses) in net current assets. D. BASIS OF ACCOUNTING All governmental funds, expendable trust funds and agency funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become susceptible to accruals, that is, when both are measurable and available. "Measurable" means the amounts of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. 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 15 "TY OF SAN RAFAEL, CALIFORi ._A NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 received in cash because they are generally not measurable until actually received. Investment earnings are accrued since they are measurable and available. Expenditures under the modified accrual basis of accounting are recognized when the related fund liability is incurred, except for principal and interest on general long-term obligations which are recognized when due. Liabilities expected to be paid after the current period are recorded in the General Long-Term Debt Account Group. Agency-type funds are custodial in nature (assets equal liabilities) and thus do not involve measurement of results of operations. E. BUDGETS AND BUDGETARY ACCOUNTING The City annually adopts a budget for its general fund (excluding certain workers' compensation and liability claims) and certain special revenue and debt service funds to be effective July 1 for the ensuing fiscal year. From the effective date of the budget, which is adopted at the department level, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by resolution during the fiscal year. The City Manager is authorized to transfer budgeted amounts between accounts, departments or funds; the Council must approve any increase in the City's total budget. Several supplemental appropriations were approved during the course of the year. All unencumbered appropriations lapse at year end. The City also adopts budgets annually for its capital projects funds. Such budgets are based on a project time frame, rather than a fiscal year "operating" time frame, reappropriating unused appropriations from year to year until project completion. The City does not adopt budgets for trust and agency funds, and other funds as follows: Special Revenue Funds: Baypoint Lagoons Assessment District Fund Loch Lomond Assessment District Fund Development Revolving Fund Development Services Fund Parkland Dedication Fund Debt Service Revenue Funds: East Francisco Boulevard Assessment District Fund 16 ( elL i OF SAN RAFAEL. CALIFORNL NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 The City's budget is adopted on the cash basis of accounting for certain transactions. The results of operations are presented in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances -Budget (cash basis) and Actual in accordance with the budgetary process (budget basis) to provide a meaningful comparison to budget. The results of actual operations on a budgetary basis are reconciled to the results of operations on a generally accepted accounting principles (GAAP) basis by fund type as follows: Special Debt General Revenue Service Excess (Deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (budget basis) $ 357,797 $(1,376,818) $(1,616,093) Adjustments arising from differences between cash basis and modified accrual basis Adjustments arising from funds not budgeted (343,244) 1,456,782 (28,363) Excess (Deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (GAAP basis) $ 14.553 $ 51,601 $(1.616,093) Supplemental appropriations for the fiscal year ended June 30, 1997, were as follows: Original Supplemental Amended Fund Budget Appropriations Budget General Fund $ 28,848,123 $1,667,029 $ 30,515,152 Special Revenue Funds 12,502,922 4,159,296 16,662,218 Debt Service Funds 2,055,000 7,205,992 9,260,992 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. 17 "TY OF SAN RAFAEL. CALIFORl . t. NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 F. CASH AND CASH EQUIVALENTS Cash and cash equivalents are considered to be all highly liquid investments, with a 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 cost except for investments of the Deferred Compensation Plan Agency Fund, which are stated at current (market) value. When market values decline below cost, no loss is recorded if such declines are considered temporary. The City's policy is to hold investments until maturity or until market values equal or exceed cost. However, if the liquidity needs of the City were to require that investments be sold at a loss subsequent to year end, the decline in value would be recorded as a loss at the fiscal year end. 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. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair market value on the date donated. Fixed assets acquired by lease obligations are valued at the present value of future lease payments at the inception of the lease. The collection systems and facilities of the 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. 18 C_ ... Y OF SAN RAF AEL. CALIFORN~._ NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 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 1. ACCUMULATED UNPAID VACATION AND SICK LEAVE The City accounts for compensated absences (unpaid vacation, sick leave, compensatory time and administrative leave) expected to be currently payable as accrued payroll and benefits liability in the governmental funds to which they relate. The balance of the earned and vested, but unused, compensated absences expected to be paid subsequent to June 30, 1997, is recorded in the General Long-Term Debt Account Group. Sick pay vesting was discontinued for employees hired after 1978. No expenditure was recorded for these amounts. 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, 1997, 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 MAXIMUM RATES The State of California (State) Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed one percent of its assessed value unless an additional amount for general obligation debt has been approved by voters. Assessed value is calculated at 100% of market value as defined by Article XIII A and may be adjusted by no more than two percent per year unless the property is sold, transferred or improved. The State Legislature has determined the method of distribution of receipts from a one percent tax levy among the counties, cities, school districts and other districts. 19 :TY OF SAN RAFAEL. CALIFOffi .. ~A NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Marin County assesses, bills for and collects property taxes as follows: Lien dates Levy dates Due dates Delinquency as of March 1 July 1 Secured 50% on November 1 50% on February 1 December 10 (for November) April 10 (for February) Unsecured March 1 July 1 July 1 August 31 The tenn "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. Public Safety Sales Tax (Proposition 172 Sales Tax) -The City accrues July and August receipts of the public safety sales tax on the basis consistent with the accrual of regular sales taxes. Transient Occupancy Taxes -The City collects transient occupancy taxes on a quarterly basis. The taxes assessed for the quarter ended June 30 are due by July 31 of the subsequent fiscal year. The City accrues all transient occupancy taxes for the June 30th quarter received subsequent to the fiscal year end. 20 ( c ..... Y OF SAN RAFAEL. CALIFORNL ... NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Gas Taxes -The City accrues gac; taxes assessed for the month ended June 30 as these amounts are both measurable and available to the City a month after the fiscal year end. Franchise Fees -The City collects franchise fees on a quarterly basis. The taxes assessed for the quarter ended June 30 are due by July 31 of the subsequent fiscal year. The City accrues all franchise fees for the June 30 th quarter received subsequent to the fiscal year end. N. CLAIMS AND JUDGMENTS Claims and judgments that nonnally would be liquidated with expendable available resources are accounted for in the General Fund. O. "TOTALS (MEMORANDUM ONLY)" INFORMATION Columns on the accompanying combined financial statements captioned "Totals (Memorandum Only)" do not present consolidated financial infonnation. They are not necessary for a fair presentation of the financial statements, but are presented as additional analytical data. Interfund eliminations have not been made in the aggregation of this data. 2. CASH AND INVESTMENTS Cash balances from all funds are combined and invested to the extent possible pursuant to the City Council approved Investment Policy and Guidelines and California Government Code. The earnings from these investments are allocated quarterly to each fund based on an average of quarterly opening and closing balances of cash and investments. Investments are stated at cost except for those of Deferred Compensation Plans which are shown at the current market value. The market value information is provided as quoted on June 30, 1997. This is for information only (except for Deferred Compensation Plans) to assess the actual value if the City were to liquidate the investments before maturity. The City has no such intentions and will hold the investments to maturity. 21 ITV OF SAN RAFAEL. CALIFOffi .£A NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 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 (TV A) Student Loan Association Notes (SALLIE MAE) California Local Agency Investment Fund (LAIF): The LAIF is a special fund of the California State Treasury through which local governments may pool investments. Each city or agency may invest up to $20,000,000 in the fund. Investments in LAIF are highly liquid, as deposits can be converted to cash within 24 hours. California Arbitrage Management Program (CAMP): The CAMP is a non-taxable investment fund under provisions of the California Joint Exercise of Powers Act to provide California Public Agencies with comprehensive investment management, accounting and arbitrage rebate calculation services for proceeds of tax-exempt financing. The CAMP currently provides two short-term investment portfolios, a segregated portfolio and a cash reserve portfolio. 22 t I CO-L'Y OF SAN RAFAEL. CALIFORN~rl. NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Cash and investments at June 30, 1997, excluding the component unit, consisted of the following: Cash: Demand accounts at banks Petty cash Cash with Fiscal Agent Investments: Medium-Tenn Corporate Notes U.S . Treasury Notes Federal Home Loan Bank Notes Federal National Mortgage Association Obligations Federal Home Loan Mortgage Corporation Federal Fann Credit Bank Student Loan Association Notes Investments with Fiscal Agent: Mutual Funds -Federal Securities Surety Bonds Restricted cash on deposit with bank trust departments -Deferred Compensation California Local Agency Investment Fund California Arbitrage Management Program Total Cash and Investments Cash Market Value $ (4,118) 6,700 70,983 2,489,670 510,156 8,048,074 3,745,183 3,748,585 1,250,429 500,000 106,645 631,470 9,138,223 10,911,814 4,015,483 $45.169,297 $ (4,118) 6,700 70,983 2,485,710 503,125 8,034,215 3,744,103 3,749,732 1,252,070 498,905 106,645 631,470 9,138,223 10,911,814 4,015,483 $45.145,060 The distribution of these monies by funds was as follows: Funds: General Special Revenue Debt Service Capital Projects Fiduciary TOTAL 23 $ 5,532,695 14,108,143 1,705,093 14,236,261 9,587.105 $45.169,297 TV OF SAN RAFAEL. CALIFORl,_.A NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 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 financial institutions to secure local agency deposits by pledging first trust deed mortgage notes leaving a value of 150% of a 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: Category 1 -insured or collateralized with securities held by the City or its agent in the City's name. Category 2 -collateralized with securities held by the pledging financial institution's trust department or agent in the City'S name. Category 3 -uncollateralized or collateralized with securities held by the pledging financial institution's trust department or agent but not in the City's name. Credit Risk, Carrying Amount and Market Value of Investments Investments made by the City are classified as to credit risk by three categories, as follows: Category 1 -insured or registered, or securities held by the City or its agent in the City's name. Category 2 -uninsured or unregistered, with securities held by the counterparty's trust department or agent in the City's name. Category 3 -uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the City's name. 24 L ... Y OF SAN RAFAEL, CALIFORN ._ NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Investments in pools managed by other governments or in mutual funds are not required to be categorized pursuant to GASB Statement No.3 . 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 25 Category 2 $ 777,203 $ 777,203 $ 3 68,586 2,397 $ 70,983 Carrying Amount $ 877,203 76,926 (958,247) 6.700 2,582 68,586 2.397 $ 73,565 fY OF SAN RAFAEL. CALIFORI\ __ ~ NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 CategoQ: Carrying Market 2 3 Amount Value Investments Pooled Investments Medium-Tenn Corporate Notes $ 2,489,670 $ $ $ 2,489,670 $ 2,485,710 U. S. Treasury Notes 510,156 510,156 503,125 Federal Home Loan Bank Notes 8,048,074 8,048,074 8,034,215 Federal National Mortgage Association Obligations 3,745,183 3,745,183 3,744,103 Federal Home Loan Mortgage Corporation 3,748,585 3,748,585 3,749,732 Federal Farm Credit Bank 1,250,429 1,250,429 1,252,070 Student Loan Association Notes 500,000 500,000 498,905 California Local Agency Investment Fund • 10,911,814 10,911,814 (2) California Arbitrage Management Program • 4,015,483 4,015,483 Total Pooled Investments 20,292,097 35,219,394 35,195,157 Investments with Fiscal Agents: Mutual Funds • (I) 9,244,868 9,244,868 Surety Bonds • 631,470 631,470 Total Investments $ 20,292,097 $ $ $ 45,095,732 $ 45,071,495 • Not subject to categorization (I) Includes deferred compensation plan investment (2) At June 30, 1997, market value of LAIF was $28,637,448,331. The City's proportionate share of the value is $10,958,518. Included in LAIF's investment portfolio are certain derivative securities or similar products in the fonn of structured notes and asset-backed securities totaling $1,147,399,000. LAIF's (and the City's) exposure to risk (credit, market, or legal) is not currently available. 26 ~ ~y OF SAN RAFAEL, CALIFOru{ . NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 3. TAXES RECEIVABLE Accounts receivable at June 30, 1997, consisted of the following: Property taxes Sales taxes Transient occupancy taxes Franchise fees TOTAL 4. FIXED ASSETS General Fund $ 78,640 2,003,024 256,933 83,884 $2,422,481 Capital Projects Funds $329,357 $329,357 Totals $ 407,997 2,003,024 256,933 83,884 $2,751,838 A summary of changes in general fixed assets for the fiscal year ended June 30, 1997, is as follows: Balance at Balance at July 1, 1996 Additions Deletions June 30, 1997 Land and buildings $ 20,730,972 $1,184,334 $ 41,917 $21,873,389 Rolling equipment 4,819,302 104,898 20,573 4 ,903,627 Furniture and equipment 4,837,216 363,444 448,554 4,752,106 Improvements other than buildings 3:286:732 3:286)32 Investment in general fixed assets $ 33:674:222 $1:652:676 $511:044 $34:815,854 27 r~TY OF SAN RAFAEL. CALIFOm· NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 5. LONG-TERM DEBT The City records long-term debt of governmental funds in the General Long-Term Debt Account Group. Other governmental fund obligations not expected to be financed with current available financial resources are also recorded in the general long-term debt account group. Long-term debt outstanding at June 30, 1997, was as follows: San Rafael Joint Powers Financing Authority: 1997 Authority Revenue Bonds San Rafael Redevelopment Agency Tax Allocation Bonds: Series 1992 Series 1995 Total Tax Allocation Bonds Special Assessment Bonds (with governmental commitment) Lucas Valley Peacock Gap Refunding Mariposa Road Assessments Total Special Assessment Bonds (with governmental commitment) Note payable Total Long-term Debt Maturity Interest Rates Authorized and Issued 2011 4.00 -6.00% 5,250,000 2017 2021 1998 2005 2008 2025 28 3.25 -6.45 18,615,000 4.00 -6.00 8,895,000 5.50 -5.75 4.00 -4.75 4.50 -6.90 8.00 217,393 2,405,000 233,638 Outstanding June 30, 1997 $ 5,250,000 16,385,000 8,405,000 24,790,000 35,000 1,750,000 185,000 1.970,000 169,000 $ 32,179,000 ~ lY OF SAN RAFAEL. CALIFO~ __ .. NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Long-term debt transactions during the fiscal year ended June 30, 1997 was as follows: Tax Special Liability Vacation and Revenue Allocation Assessment Note Lease Sick Leave Bonds Bonds Bonds Pa:iable Total Debt Purchases Obligations Balance at July I, 1996 $ $25,345,000 $ 8,339,000 $ 169,000 $33,853,000 $ 39,867 $2,777,269 Additions: Bond issues 5,250,000 5,250,000 Accrued interest Retirements: Principal repayments 555,000 6,369,000 6,924,000 20,291 Vacation and sick leave obligations (net) 302,981 Balance at June 3D, 1997 $ 5.250.000 $ 24 .790.000 $ 1,970,000 $ 169.000 $32,179.000 $ 19.576 $2.474.288 Debt service requirements, including interest, follows: A. Tax Special Liability Revenue Allocation Assessment Note Lease Bonds Bonds Bonds Pavable Purchases Totals Year Ending June 30 : 1998 $ 317,882 $ 2,052,191 $ 572,330 $ $20,380 $ 2,962,783 1999 663,242 2,057,435 572,185 3,292,862 2000 660,405 2,050,284 551,208 3,261,897 2001 660,737 2,055,640 554,020 3,270,397 2002 663,906 2,053,312 547,3 \0 3,264,528 Thereafter 4.349,252 35.123.860 914,903 642.200 41,030,215 Total $7.315.424 $45.392.722 $3 ,711.956 $642.200 $20,380 $57,082.682 1992 AGENCY REFUNDING BOND On May 1, 1992, the Agency issued Tax Allocation Refunding Bonds in the amount of $18,615,000. The proceeds of the bonds were used to refund $10,905,000 outstanding principal of the Agency's Central San Rafael Redevelopment Project Tax Allocation Bonds, Series 1985 which were issued in May 1985 to fund the construction of new improvements within the Project Area. 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. 2 9 B. ( -TY OF SAN RAFAEL, CALIFORl': . NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 The annual requirements to amortize the outstanding bond indebtedness as of June 30, 1997, including interest, are as follows: Year Ending June 30, Principal Interest Total 1998 $ 405,000 $ 1,019,614 $ 1,424,614 1999 430,000 997,057 1,427,057 2000 450,000 972,407 1,422,407 2001 480,000 945,662 1,425,662 2002 505,000 916,844 1,421,844 Thereafter 14,115,000 8,436,212 22,551,212 Total ~ 16.385.000 $13.287.796 $ 29 .672. 796 1995 AGENCY BOND On October ], 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. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 1997, including interest, are as follows: Year Ending June 30. Principal Interest Total 1998 $ 175,000 $ 452,577 $ 627,577 1999 185,000 445,378 630,378 2000 190,000 437,877 627,877 2001 200,000 429,978 629,978 2002 210,000 421,468 631,468 Thereafter 7,445.000 5,127,648 12,572.648 Total $8,405.000 ~7.314.926 ~ 15.719.926 30 (:. Y OF SAN RAFAEL. CALIFORN ._ NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 C. 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 Valley Open Space District, Series No. 1985-3; Kerner Boulevard Refunding Assessment District, Series 1986-1; and Civic Center -Northgate Refunding Assessment District, Series 1991-1. The 1997 Authority Revenue Bonds mature annually each September 2 from 1997 to 2011, in amounts ranging from $20,000 to $555,000. Interest is payable semiannually on March and September 2. The Bonds are subject to redemption in advance of maturity at the option of the City upon payment of the principal and interest accrued thereon to the date of redemption, plus a redemption premium ranging from 2.00% to 5.00%. Revenues from the Reassessment District Bonds are utilized to meet debt service requirements of the Revenue Bonds. The Reassessment District Bonds are secured by unpaid reassessments confirmed against private property within the applicable Reassessment District. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 1997, including interest, are as follows: Year Ending June 30, Principal Interest Total 1998 $ 20,000 $ 297,882 $ 317,882 1999 400,000 263,242 663,242 2000 415,000 245,405 660,405 2001 435,000 225,737 660,737 2002 460,000 203,906 663,906 Thereafter 3,520,000 829,252 4,349,252 Total ~5.250~000 ~2~065,424 ~7~315,424 D. OTHER LONG-TERM OBLIGATIONS At June 30, 1997, other long-term obligations consisted ofa $169,000 promissory note bearing interest at 8% with principal and accrued interest due and payable in November 2024. The note was assumed to finance the purchase of certain property by the Agency. Accrued interest at June 30, 1997 was $103,243. 3 1 TY OF SAN RAFAEL. CALIFOR1, ~ NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 E. 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 outstanding balance of the 1911 Bond Act as of June 30, 1997, was $19,801. 6. INTERFUND RECEIVABLES AND PAYABLES 7. A summary of due from and due to other funds is as follows: Fund Due From Due To General Fund $ 103,270 $ Special Revenue Funds: Parkland Dedication Fund 58,000 21,726 Grants Fund 23,723 Capital Projects Funds: Bedroom Tax Fund 58,076 Park Capital Projects Fund 94,350 1985 Capital Project and Administration Fund 79,547 1995 Bonds Capital Project Fund 24,342 Expendable Trust Funds: Business Improvement Fund 24,342 Total ~243,688 $243.688 LOANS RECEIVABLE The City has the following loans receivable at June 30, 1997: 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 5% interest rate; all principal and interest due May 1, 1999. 32 ( ! 'Y OF SAN RAFAEL. CALIFORNI.. NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 C. $303,000 loan from Centertown Associates, Ltd. at 3% interest rate due seml- annually. The remaining loan receivable at June 30, 1997, was $280,268. The final payment is due on July 1,2065. D. $400,000 loan from the City Manager at 5.53% interest rate; principal and interest due monthly until August 31, 2026. The principal balance outstanding at June 30, 1997, was $387,684. 8. CAPITAL 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 General Fixed Asset Account Group and the General Long-Term Debt Account Group, respectively. The equipment acquired through the capital leases totaled $108,061 at June 30, 1997. The future minimum lease obligations as of June 30, 1997, were as follows: Year ending June 30, 1998 $20,380 Less: Amount representing interest (804) Present value of minimum lease payments $ 19.576 9. FUND BALANCES, RESERVES AND DESIGNATIONS Fund balances consist of reserved and unreserved amounts. Reserved fund balances represent that portion of a fund balance which is not appropriable for expenditure or is legally segregated for a specific future use. The remaining portion is unreserved fund balance. Portions of unreserved fund balance may be designated to indicate tentative plans for financial resource utilization in a future period, such as for general contingencies or capital projects. Such plans or intent are subject to change, have not been legally authorized and may not result in expenditures. 33 10. TY OF SAN RAFAEL. CALIFORI\ NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 A detailed schedule of the fund balances at June 30, 1997, is shown as follows: Fiduciary Governmental Fund Tvm=s Fund T~~es Special Debt Capital Trust and General Revenue Service Projects Agency Fund balances: Reserved: Encumbrances $ 114,047 $ 728,529 $ $ 71,864 $ Petty cash 3,700 3,000 Cable television tax revenues 215,779 Employee M.O.U. 583,211 Loans receivable 387,684 100,000 380,268 Debt service 1,690,117 Projects 57,734 612,666 449,138 Equipment replacement 1,500 Building and structure 10,000 Facility closure 10,000 Land held for resale 2,004,514 Total Reserved 1,362,155 1,462,695 1,690,117 2,456,646 452,138 Unreserved and Designated: Library services 40,445 Public safety 41,487 Grant projects 260,527 Parkland 1,184,592 Redevelopment 12,230,227 Construction 2,198,718 13,701 2,446,964 Traffic mitigation · 7,483,841 Total Unreserved and Designated 11.209,610 13,701 14,677,191 Unreserved and Undesignated 4,586,364 1.660.737 TOTAL FUND BALANCES $5.948,519 $14,333,042 $1,703,818 $17,133,837 $452,138 DEFICIT FUND BALANCES At June 30, 1997, the City has deficit fund balances in the following funds: Debt Service Funds: 1992 Agency Refunding Bonds Fund Capital Project Funds: Park Capital Projects Fund 34 $ 900 $20,137 Totals $ 914,440 6,700 215,779 583,211 867,952 1,690,117 1,119,538 1,500 10,000 10,000 2.004.514 7,423,751 40,445 41,487 260,527 1,184,592 12,230,227 4,463,263 7,483.841 25,900,502 6.247.101 $39.571.354 ( !.. .'Y OF SAN RAFAEL, CALIFORN. NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1997 11. EXCESS OF EXPENDITURES OVER APPROPRIATIONS Debt Service Funds: Peacock Gap Assessment District Fund Mariposa Assessment District Fund 1992 Agency Refunding Bonds Fund 1995 Agency Bonds Fund 12. EMPLOYEES' RETIREMENT PLAN Plan Description Appropriations Expenditures $ 320,350 23,453 1,425,356 629,644 $ 322,190 23,830 1,429,492 632,438 Excess $ (1,840) (377) (4,136) (2,794) All pennanent employees are eligible to participate in the Marin County Employees' Retirement Fund (the Fund). The Fund is an agent multiple-employer defined benefit retirement plan that acts as a common investment and administrative agent for various local governmental agencies within the County of Marin. The Fund provides retirement, disability, and death benefits based on the employee's years of service, age and final compensation. Employees vest after five years of service and are eligible to receive retirement benefits after 10 years of service and have attained the age of 50, or 30 years of service (20 years for safety employees) regardless of age. These benefit provisions and all other requirements are established by County ordinance. The City contributed 26.77% of payroll to the Fund for public safety personnel and 14.17% for other covered employees for the year ended June 30, 1997. The City's covered payroll for employees participating in the Fund for the year ended June 30, 1997, was $16,155,555. The City's 1997 payroll for all employees was $20,980,188. The City, due to a collective bargaining agreement, also has a legal obligation to contribute half of the employees' contribution up to a maximum of 7% of payroll for safety employees and 5% of payroll for all other employees. Employees have an obligation to contribute the remaining portion. Funding Status and Progress The "pension benefit obligation" is detennined for each participating employer by the Fund's actuary and is a standardized disclosure measure that results from applying actuarial assumptions to estimate the present value of pension benefits, adjusted for the effects of projected salary increases and step rate benefits, to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the City's portion of the Fund to which contributions are made on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used. The pension benefit obligation was computed as part of an actual valuation perfonned as of July 1, 1994. The significant actuarial assumptions used in the 1994 35 ( lTV OF SAN RAFAEL. CALIFOR. _A NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 actuarial valuation to compute the pension benefit obligation were an assumed rate of return on investment assets of 8%, and annual payroll increases of 4.5% per year before five years of service, and 2% per year thereafter for miscellaneous employees under age 40 or 0.5% per year thereafter for safety employees. Total unfunded pension benefit obligation applicable to the City's employee groups at July 1, 1996, follows: Pension Benefit Obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits Current employees: Accumulated employee contributions and allocated investment earnings Employer-fmanced, vested Employer-fmanced, nonvested Total pension benefit obligation Net assets available for benefits, at cost Unfunded pension benefit obligation Actuarially Determined Contributions Required and Contributions Made $ 45,107,000 10,260,000 41,690,000 1.485,000 98,542,000 100,868,000 $ (2,326,000) 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 contribution to the Fund for the year ended June 30, 1997, of $3,647,681 was made in accordance with the actuarially determined requirements computed as of July 1, 1994. The City contributed $2,949,871 (20.89% of current covered payroll). The employees' contribution was $697,810 (5.00% of current covered payroll). The contribution rate for normal cost is determined using the Entry Age Normal Actuarial Cost Method, a projected benefit cost method. It takes into account those benefits that are expected to be earned in the future as well as those already accrued. The Fund also uses the level percentage of payroll method to amortize the unfunded actuarial liability . It is assumed that payroll increases at an annual inflation rate of 4.5% over the amortization period. As of July 1, 1994 twelve years are left in the amortization period. 36 { I TY OF SAN RAFAEL. CALIFORl\ .. NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Significant actuarial assumptions used in the 1994 valuation to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation as described above. Three-Y ear Historical Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. The ten-year historical information is shown in the Statistical Section. For the City's share of the Fund, trend information for the years ended June 30, 1996, 1995 and 1994 is as follows: Net assets available for benefits, at cost Pension benefit obligation Net assets available for benefits as a percentage of pension benefit obligation Unfunded pension benefit obligation Estimated annual covered payroll Unfunded pension benefit obligation as a percentage of annual covered payroll $ 100,868,000 98,542,000 102% (2,326,000) 15,403,000 (15)% $ 84,535,777 98,532,000 86% 13,996,223 14,643,000 96% $ 78,189,294 91,958,000 85% 13,768,706 13,945,000 99% Employer's contributions, made in accordance with actuarially determined requirements, as a percentage of annual covered payroll was 20.89%, 20.42% and 19.44% for 1996, 1995 and 1994, respectively. 13. PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION RETIREMENT PLAN) The City contributes to the Public Agency Retirement System (PARS), which is a defined contribution retirement plan. A defined contribution retirement plan provides retirement benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual's account are to be determined instead of specifying the amount of benefits the individual is to receive. Under a defined contribution pension plan, the benefits a participant will receive depend solely on the amount contributed to the participant's account, the returns earned on investments on those 37 ( TY OF SAN RAFAEL. CALIFORl _~ NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 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 $83,574 (3.75% of current year covered payroll) and employees contributed $83,574 (3.75% of current year covered payroll). The total covered payroll of employees participating in the plan for the year ended June 30, 1997, was $2,228,640. The total payroll for the year was $20,980,188. No changes in plan provisions occurred during the year. The plan held no securities of the City or other related parties during or at the close of the fiscal year. 14. POST-EMPLOYMENT HEALTH CARE BENEFITS The City provides certain health care benefits for retired employees and their spouses. The benefit provisions were established under the authority of the 1937 Act, Section 31450, et. seq. of the Government Code. Substantially ail of the City's employees may become eligible for these benefits if they are receiving a retirement benefit from the Marin County Employees' Retirement Fund within 120 days of retirement from City employment. At June 30, 1997, 149 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, 1997, those costs totaled $174,637. 15. DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City 38 ~ .'Y OF SAN RAFAEL. CALIFORN __ NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The City has no liability for losses under the plan but does have the fiduciary duty of due care that would be required of an ordinary prudent investor. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 16. SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City's Enterprise Funds comprises only of the discretely presented component unit, San Rafael Sanitation District. Segment information for the fiscal year ended June 30, 1997, is as follows: Types of goods 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 17. RISK MANAGEMENT $ 3,904,647 720,825 56,628 449,639 232,671 289,299 1,914,795 334,850 $ 24,072,444 4,302,553 $19,262,218 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 General Fund. The City had established a claims liability of $1,949,188 at June 30, 1997, based on the requirement of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior 39 :TY OF SAN RAFAEL. CALIFORl _A NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Settled claims have not exceeded this coverage in any of the past three fiscal years. A reconciliation of changes in the aggregate liabilities for claims for the fiscal year ended June 30, 1996 and 1997 is as follows: Unpaid claims and claim adjustments at June 30, 1996 Incurred claims and claim adjustment expenses Payments and claim adjustments Total unpaid claims and claim adjustments expenses at June 30, 1997 $1,970,895 533,490 (555,197) $1.949,188 The California Joint Powers Risk Management Authority which began operations in February 1986, is a governmental self-insurance cooperative organized under a joint power agreement consisting of 23 members which represent over 120 public agencies in California. The Risk Management Authority pools self-insurance losses of charter and associate members, develops risk management programs, and provides for administration of pooled coverage claims. The City paid $186,177 in premiums to the Risk Management Authority during the fiscal year ended June 30, 1997. Condensed financial information for the California Joint Powers Risk Management Authority for the fiscal year ended June 30, 1996 is as follows: Assets Liabilities Equity: Retained earnings Total Liabilities and Equity Revenues Expenses Refunds to members Net increase in retained earnings 40 $ 50,464,979 $ 26,799,834 23,665,145 $ 50,464,979 $12,396,779 (3,361,867) (3,514,394) $ 5,520,518 ( ~ .'Y OF SAN RAFAEL, CALIFORN_ NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 18. JOINT POWER AGREEMENTS The City participates in various organizations through formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Joint Powers Agreement including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts, and the right to sue and be sued. Obligations and liabilities of the separate entities are not those of the City. Joint Ventures: The Marin County Integrated On-Line Library System (the System) was formed to provide for the procurement, ownership, operation, maintenance, and governance of an integrated on-line library system that is jointly owned and operated by the Cities of San Rafael, Mill Valley, Sausalito, and the County of Marin. The Governing Board of the System consists of the library director or designated alternate of each participant in the System. In accordance with the cost sharing formula developed by the library directors of the participants, the City's share of the acquisition cost in the amount of $108,007 represents 18.98% of ownership in the System. Operating costs for the System are also shared by each participant by applying the cost sharing the formula. 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 (MSLAJP A) was formed by the County of Marin and twelve local agencies to acquire street light facilities, operate the facilities during the pendency of an eminent domain action against PG&E and subsequent transfer of the facilities to the individual local agencies. The Governing Board consists of five members from the participating agencies. Each of the local agencies' share of contribution was based on the number of street lights to be acquired in the local agencies' individual jurisdiction in relation to the total number of street lights to be acquired by the MSLAJP A. Jointly Governed Organizations: The Countywide Planning Agency was established by the County of Marin and ten local cities to implement countywide performance standards for traffic, housing, water and sewer facilities, and environmental protection to ensure that residential and commercial growth does not exceed local water, sewer and transportation capacities. The Governing Board of the Countywide Planning Agency consists of one member of the County Board of Supervisors and one member of the City Council of each participating city. The Marin County Cable Rate Regulation Joint Powers Authority was established to regulate the rates for cable television service and equipment and to advise the participants in their exercise of their license authority. The Governing Board of the Marin County Cable Rate Regulation Joint Powers Authority consists of one member from each of the seven participating local cities. 41 , ITY OF SAN RAFAEL, CALIFOR-,.A NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 The Marin County Major Crimes Task Force was established by twelve local law enforcement agencies to provide funding and policy direction of a unit of peace officers and support personnel to detect, apprehend and prosecute major crimes including highly mobile criminal narcotic traffickers thus reducing major narcotic activity and combating its influence throughout the County. The Governing Board of the Marin County Major Crimes Task Force consists of nine members, one city council member, one member of the Marin County Board of Supervisors, two city managers, two chief law enforcement officials, two residents of Marin County, and the Marin County Administrator. The Marin County Hazardous and Solid Waste Joint Powers Authority was established by the County, local cities and waste franchising districts to finance, prepare and implement source reduction and recycling elements on a county-wide integrated waste management plan as required by State Assembly Bill 939. 19. 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. 20. RELATED PARTY TRANSACTION On August 1, 1996, the City made a 30-year loan to the City Manager in the amoup.t of $400,000 at 5.33% interest rate for the purchase of a home. The loan is secured by the Deed of Trust. 21. PRIOR PERIOD ADJUSTMENTS General Fund: General Fund -Beginning fund balances were reduced by $1,970,895 for prior year's insurance claims liabilities. Special Revenue Funds: Public Safety Fund -Beginning fund balances were reduced by $12,154 due to overstated receivable in the prior year. Parkland Dedication Fund -Beginning fund balances were reduced by $1,000 to adjust prior year's due from other funds. 42 ~ .'Y OF SAN RAFAEL, CALIFORl'l _ NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1997 Debt Service Funds: 1992 Agency Refunding Bonds Fund -Beginning fund balances were reduced by $525,183 to write off prepaid bond interest that was recorded originally as an increase in fund balances in the fiscal year ended June 30, 1993. 1995 Agency Bonds Fund -Proceeds of $631 ,469 was not established in the 1995 debt service fund as cash with fiscal agent. Capital Projects Funds: Park Capital Projects Fund -Beginning fund balances were increased by $2,000 to adjust prior year's due to other funds; and reduced by $45,186 to write off accounts receivable that were recorded as operating transfers- in in the prior year. 43 ( SUPPLEMENTARY INFORMATION · fV OF SAN RAFAEL. CALIFORl\_£~ SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 1997 BAYPOINT LAGOONS RECREATION ASSESSMENT PARKING GAS ASSETS Cash and investments Accounts 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 Unreserved: Designated Undesignated Total Fund Balances TOTAL LIABILITIES REVOLVING DISTRICT SERVICES TAX $ 16,108 $ 18,491 $ 16,108 $ 18,491 $ 16,108 $ 1,404 16,108 1,404 5,000 12,087 17,087 $ 129,241 14,943 $ 144,184 $ 2,264 2,264 141,920 141,920 $ 648,035 57,329 $ 705.364 $ 11,710 11,710 14,221 679,433 693,654 AND FUND BALANCES ~$=1~6,=10=8======~$=18~,4~9~1====~$=1=44~,=18=4====~$=70~5~,3~64 44 ( HOUSEHOLD LOCH LOMOND EQUIPMENT DEVELOPMENT HAZMA T ASSESSMENT DEVELOPMENT CIDLDCARE REPLACEMENT REVOLVING FACILITY DISTRlCT SERVICES $ 250,385 1,000 $ 251,385 $ 18,634 18,634 1,286 231,465 232,751 .i1.2..1,385 $2,214,798 $ 20,452 $2.214.798 $ 20,452 $ 29,885 $ 20,452 29,885 20.452 524,176 1,660,737 2,184,913 $2.214.798 $ 20.452 45 $ 171,593 143,191 $ 314,784 $ 38,877 38,877 153,867 122,040 275,907 $ 314.784 $ 126,987 $ 126.987 $ 15,595 15.595 111,392 111,392 $ 126.987 $ 913,462 $913.462 $ 40,i76 40,776 607,666 265,020 872,686 $ 913.462 (Continued) :TY OF SAN RAFAEL, CALIFO~ _A SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 1997 TRAFFIC AND HOUSING LIBRARY SAFETY STORMW A TER MITIGATION ASSETS Cash and investments Accounts 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 Unreserved: Designated Undesignated Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES $ 40,811 $ 40,811 $ 366 366 40,445 40,445 $ 40,811 46 $ 47,034 $ 47,034 $ 2,322 2,322 3,225 41,487 44,712 $47,034 $ 832,018 37,117 $ 869,135 $ 187,710 187,710 46,064 635,361 681,425 $ 869,135 $7,416,775 161,260 100,000 $7,678,035 $ 94,194 94,194 100,000 7,483,841 7,583,841 $7,678,035 GRANTS $ 113,635 73 204,808 ~ 318,516 $ 27,076 23,723 50,799 7,190 260,527 267,717 $ 318,516 PARKLAND DEDICATION $1,148,318 21,726 58,000 ~ 1,228,044 $ 21,726 21,726 43,452 1,184,592 1,184,592 $1,228,044 ( TOTAL $14,108,143 436,639 204,808 100,000 58,000 ~ 14,907,590 $ 507,373 45,449 21,726 574,548 1,462,695 11,209,610 1,660,737 14,333,042 $14,907,590 (Concluded) 47 lTY OF SAN RAFAEL. CALIFOR. ,..A SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1997 BAYPOINT LAGOONS RECREATION ASSESSMENT PARKING GAS REVOLVING DISTRICT SERVICES TAX REVENUES: Taxes and special assessments $ $ 26,812 $ $ Licenses and penn its 628,695 Uses of money and property 7,606 38,140 Intergovernmental 1,078,610 Charges for current services 728,518 Other revenues 5~179 Total Revenues 733~697 26,812 636,301 1,116,750 EXPENDITURES: Current: General governmental 670,217 Public safety Public works and parks 15,729 Culture and recreation 783,147 Capital Outlay 783~856 Total Expenditures 783,147 15,729 670,217 783,856 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (49,450) 11,083 (33,916) 332,894 OTHER FINANCING SOURCES (USES): Operating transfers -In 49,450 Operating transfers -Out (72,155) (350,000) Total Other Financing Sources (Uses) 49,450 (72,155) (350,000) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 11,083 (106,071) (17,106) FUND BALANCES AT BEGINNING OF YEAR 6,004 247,991 710,760 PRIOR PERIOD ADmSTMENT FUND BALANCES AT END OF YEAR $ $ 17,087 $ 141,920 $ 693,654 48 ( ( HOUSEHOLD LOCH LOMOND EQUIPMENT DEVELOPMENT HAZMAT ASSESSMENT DEVELOPMENT ClllLDCARE REPLACEMENT REVOLVING FACILITY DISTRICT SERVICES $ $ $ $ $ 56,697 $ 8,911 119,013 16,526 1,632 26,515 J 1,318 488,091 1,863,750 285,231 70,565 742,390 4,286 203,597 1,923,979 861,403 301,757 564,574 56,697 230,112 410,613 146,962 277,611 4,032 1,721,988 166,617 566,075 101,825 1,888,605 566,075 410,613 379.436 4,032 146,962 35,374 295,328 (108.856) 185,138 52,665 83,150 20,801 11,976 96,119 789,536 (946,130) 20.801 (934,154) 96,119 789,536 56,175 295,328 (1,043,010) 281,257 52,665 872,686 176,576 1,889,585 1,043,010 (5,350) 58,727 $ 232,751 $ 2, 184.913 $ $ 275,907 $ 111,392 $ 872,686 (Continued) 49 fV OF SAN RAFAEL. CALIFORl\ & SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1997 TRAFFIC AND HOUSING LIBRARY SAFETY STORMWATER MITIGATION REVENUES: Taxes and special assessments $ $ $ 584,657 $ Licenses and penn its Uses of money and property 28,276 2,482 41,074 435,091 Intergovernmental 39,326 974,120 214,809 Charges for current services 8,332 16,766 Other revenues 17,574 900 584,443 Total Revenues 45,850 51,040 1,599,851 1,251,109 EXPENDITURES: Current: General governmental Public safety 30,759 Public works and parks Culture and recreation 32,563 Capital Outlay 327 56,014 ],540,716 2,023,111 Total Expenditures 32,890 86,773 1,540,716 2,023,111 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES ]2,960 (35,733) 59,135 (772,002) OTHER FINANCING SOURCES (USES): Operating transfers -In 5,025 3,053 Operating transfers -Out (8,372) (689) Total Other Financing Sources (Uses) (3,347) 2,364 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 9,613 (33,369) 59,135 (772,002) FUND BALANCES AT BEGINNING OF YEAR 30,832 90,235 622,290 8,355,843 PRIOR PERIOD ADJUSTMENT (12,] 54) FUND BALANCES AT END OF YEAR ~40,445 ~ 44,712 ~ 68],425 $7,583,84] 50 GRANTS $ 5,729 762,050 10,951 778,730 113,455 15,998 354,061 60,607 544,121 234,609 88,572 (16,177) 72,395 307,004 (39,287) $ 267,717 ( PARKLAND DEDICATION $ 2,377 65,871 40,018 108,266 108,266 (30,053) (30,053) 78,213 1,107,379 (1,000) $1,184,592 $ TOTAL 670,543 628,695 796,866 3,608,324 2,973,162 1,609,338 10,286,928 1,227,792 421,825 35,759 2,891,759 5,299,148 9,876,283 410,645 1,064,532 (1,423,576) (359,044) 51,601 14,294,595 (13,154) $ 14,333,042 5 1 ( (Concluded) -TV OF SAN RAFAEL. CALIFORl .-\ RECREATION REVOLVING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Charges for current services Other revenues Total Revenues EXPENDITURES: Current: Culture and recreation Capital outlay 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 AT BEGINNING OF YEAR ADJUSTMENT TO BUDGETARY BASIS FUND BALANCES AT END OF YEAR $ 802,500 10,500 813,000 849,942 6,000 855,942 (42,942) $ (42,942) 52 $ 728,518 5,179 733,697 784,231 784,231 (50,534) 49,450 49,450 (1,084) 1,084 $ $(73,982) (5,321) (79,303) 65,711 6,000 71,711 (7,592) 49,450 49,450 $ 41,858 ~ .L~y OF SAN RAFAEL, CALIFOAA_ .. PARKING SERVICES FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Licenses and pennits Uses of money and property Total Revenues EXPENDITURES: Current: General governmental 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 (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES AT BEGINNING OF YEAR ADJUSTMENT TO BUDGETARY BASIS FUND BALANCES AT END OF YEAR $ 610,000 14.000 624,000 686.225 686,225 (62,225) $ (62.225) 53 $627,887 7,606 635,493 674.842 674,842 (39,349) (72,155) (72,155) (111,504) 247,991 5,433 $141,920 $ 17,887 (6,394) 11,493 11 ,383 11 ,383 22.876 (72.155) (72 ,155) $(49,279) TV OF SAN RAFAEL, CALIFOru .-\ GAS TAX FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 VARIANCE FAVORABLE BUDGET ACTUAL CUNF A VORABLE) REVENUES: Uses of money and property Intergovernmental Total Revenues EXPENDITURES: Current: 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 AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES $ 30,000 1,025.500 1,055.500 1,060,000 1,060,000 (4,500) AND OTHER FINANCING USES $ (4.500) FUND BALANCES AT BEGINNING OF YEAR ADJUSTMENT TO BUDGETARY BASIS FUND BALANCES AT END OF YEAR 54 $ 38,140 1,021,281 1,059,421 772,146 772,146 287,275 (350,000) (350,000) (62,725) 710,760 45,619 $ 693.654 $ 8,140 (4,219) 3,921 287,854 287,854 291,775 (350,000) (350,000) $ (58,225) I .TV OF SAN RAFAEL. CALIFORl ,_A CHILDCARE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 VARIANCE FAVORABLE BUDGET ACTUAL (UNF A VORABLE) REVENUES: Licenses and permits Intergovernmental Charges for current services Total Revenues EXPENDITURES: Current: Culture and recreation Capital Outlay 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 (UNDER) EXPENDITURES $ 1,820 9,100 1.836,177 1.847,097 1,818,253 294,092 2,112,345 (265,248) AND OTHER FINANCING USES $ (265,248) FUND BALANCES AT BEGINNING OF YEAR ADJUSTMENT TO BUDGETARY BASIS FUND BALANCES AT END OF YEAR 55 $ 8,911 50,318 1.863,750 1.922,979 1,738,720 166,617 1,905,337 17,642 20,801 20.801 38,443 176,576 17,732 $ 232,751 $ 7,091 41,218 27.573 75,882 79,533 127,475 207,008 282,890 20,801 20,801 $ 303,691 I TY OF SAN RAFAEL, CALIFORl ~ EQUIPMENT REPLACEMENT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 VARIANCE FAVORABLE BUDGET ACTUAL CUNF A VORABLE) REVENUES: Licenses and pennits Uses of money and property Total Revenues EXPENDITURES: Current: General governmental Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES AT BEGINNING OF YEAR ADJUSTMENT TO BUDGETARY BASIS FUND BALANCES AT END OF YEAR $ 120,000 679,636 799,636 1.121.322 1.121,322 $ (321,686) 56 $ 119,013 $ (987) 755,260 75,624 874,273 74,637 590,570 530,752 590.570 530,752 283,703 $605.389 1,889,585 11,625 $2.184,913 C Y OF SAN RAFAEL, CALIFORNI! HOUSEHOLD HAZMAT FACILITY FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Uses of money and property Intergovernmental Charges for current services Other revenues Total Revenues EXPENDITURES: Current: Public safety Capital outlay 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 AT BEGINNING OF YEAR ADJUSTMENT TO BUDGETARY BASIS FUND BALANCES AT END OF YEAR $ 360,000 360,000 387,456 6.500 393.956 (33,956) $ (33,956) 57 $ 1,632 344,900 70,565 4.286 421.383 238,979 101.825 340.804 80.579 96.119 96.119 176,698 (5,350) 104.559 $275.907 $ 1,632 (15,100) 70,565 4.286 61.383 148,477 (95,325) 53.152 114,535 96.119 96,119 $ 210.654 'TY OF SAN RAFAEL. CALIFOru ..1 LIBRARY FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED ruNE 30, 1997 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Uses of money and property Other revenues Total Revenues EXPENDITURES: Current: Culture and recreation Capital outlay Total Expenditures EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCy) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES AT BEGINNING OF YEAR ADmSTMENT TO BUDGETARY BASIS FUND BALANCES AT END OF YEAR $ 23,800 7,500 31,300 50,200 50,200 08,900) $ 08,900) 58 $28,276 17,574 45,850 34,170 327 34.497 11,353 5,025 (8,372) (3,347) 8,006 30,832 1,607 $40.445 $ 4,476 10,074 14,550 16,030 (327) 15,703 30.253 5,025 (8,372) (3,347) $26,906 IV OF SAN RAFAEL, CALIFOru< __ ~ PUBLIC SAFETY FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 VARIANCE FAVORABLE BUDGET ACTUAL (UNFA VORABLE) REVENUES: Uses of money and property $ 1,350 $ 2,482 $ 1,132 Intergovernmental 65,400 63,633 (1,767) Charges for current services 4,000 8,332 4,332 Other revenues 50 900 850 Total Revenues 70,800 75,347 4,547 EXPENDITURES: Current: Public safety 46,825 30,759 16,066 Capital outlay 50~052 54~160 (4,108) Total Expenditures 96,877 84,919 11.958 EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES (26,077) (9,572) 16,505 OTHER FINANCING SOURCES (USES): Operating transfers -In 3,053 3,053 Operating transfers -Out (689) (689) Total Other Financing Sources (Uses) 2,364 2,364 EXCESS (DEFICIENCy) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ (26,077) (7,208) $18.869 FUND BALANCES AT BEGINNING OF YEAR 90,235 PRIOR PERIOD ADJUSTMENTS (12,154) ADJUSTMENT TO BUDGETARY BASIS (26,161) FUND BALANCES AT END OF YEAR $ 44.712 59 TV OF SAN RAFAEL. CALIFOR.l\ ~ STORMWATERFUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Taxes and special assessments Uses of money and property Intergovernmental Total Revenues EXPENDITURES: Capital outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES AT BEGINNING OF YEAR ADJUSTMENT TO BUDGETARY BASIS FUND BALANCES AT END OF YEAR $ 592,000 2,850 937,003 1,531,853 1,972,520 1,972,520 $ (440,667) 60 $ 584,657 41,074 937,003 1,562,734 1,363,596 1,363,596 199,138 622,290 040,003) $ 681,425 $ (7,343) 38,224 30,881 608,924 608,924 $639,805 !:. ~y OF SAN RAFAEL. CALIFORl'f _ TRAFFIC AND HOUSING MITIGATION FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Uses of money and property Intergovernmental Charges for current services Other revenues Total Revenues EXPENDITURES: Capital outlay Total Expenditures EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES AT BEGINNING OF YEAR ADJUSTMENT TO BUDGETARY BASIS FUND BALANCES AT END OF YEAR $ $ 435,091 $ 435,091 214,809 214,809 16,766 16,766 358,000 423.183 65,183 358,000 1,089 .~49 731,849 7,728,190 3,115,205 4,612.985 7,728.190 3,115,205 4,612,985 $(7,370.190) (2,025,356) $5.344,834 8,355,843 1,253,354 $ 7,583,841 61 -TV OF SAN RAFAEL. CALIFORl ! GRANTS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 REVENUES: Uses of money and property Intergovernmental Other revenues Total Revenues EXPENDITURES: Current: Public safety Public works and parks Culture and recreation Capital outlay Total Expenditures EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCy) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES BUDGET $ 421,596 421 2 596 258,685 275,236 502 720 5842 641 (163 2 045) AND OTHER FINANCING USES $ (163 2 045) FUND BALANCES AT BEGINNING OF YEAR ADmSTMENT TO BUDGETARY BASIS FUND BALANCES AT END OF YEAR 62 ACTUAL $ 5,729 575,843 10,951 592 2 523 113,455 15,998 349,787 60 2607 5392 847 52 2676 88,572 (1 6J 77) 72395 125,071 (39,287) 18L933 $2672 717 VARIANCE FAVORABLE (UNFAVORABLE) $ 5,729 154,247 10,951 1702 927 145,230 (15,998) (74,551) (9.887) 442 794 215 2 721 88,572 (16J 77) 72,395 $288J 16 ( TIDS PAGE LEFT BLANK INTENTIONALLY 63 "TV OF SAN RAFAEL, CALIFORl A ASSETS Cash and investments Cash with fiscal agent Assessments receivable TOTAL ASSETS DEBT SERVICE FUNDS COMBINING BALANCE SHEET JUNE 30,1997 EAST FRANCISCO BOULEVARD ASSESSMENTS DISTRICT $ 13,701 $ 13,701 LIABILITIES AND FUND BALANCES Liabilities: Deferred revenue Total Liabilities Fund Balances: Reserved Unreserved: Designated Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES $ 13,701 13,701 $ 13,701 64 KERNER BOULEVARD ASSESSMENTS DISTRICT $ - $ - $ - $ - SUN VALLEY ASSESSMENT DISTRICT $ - $ - $ - PEACOCK GAP ASSESSMENT DISTRICT $ 450,263 470,347 $920,610 $ 470,347 470.347 450,263 450,263 $ 920,610 1915 ACT BONDS $ 68,586 $ 68,586 $ 68,586 68,586 $ 68 ,586 CIVIC CENTER! NORTHGATE ASSESSMENT DISTRICT $ - $ - $ - $ - ( MARIPOSA 1997 ASSESSMENT REASSESSMENT DISTRICT BONDS $ 39,267 $ 39,267 $ 39,267 39,267 $ 39,267 65 $ - 2,397 $ 2.397 $ - 2,397 2.397 $ 2,397 1997 FINANCING AUTHORITY REVENUE BONDS $ 392,764 106,112 1,050.219 $1,549,095 $1,050,219 1,050,219 498,876 498,876 $1,549,095 (Continued) ( "y OF SAN RAFAEL, CALIFORN DEBT SERVICE FUNDS COMBINING BALANCE SHEET ASSETS Cash and investments Cash with fiscal agent Assessments receivable TOTAL ASSETS LIABILITIES AND FUND BALANCES Liabilities: Deferred revenue Total Liabilities Fund Balances: Reserved Unreserved: Designated Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES JUNE 30, 1997 1992 AGENCY REFUNDING 66 BONDS $ - 375 $ 375 $1,275 1,275 (900) (900) $ 375 ~ 1995 AGENCY BONDS $ 631,628 $ 631,628 $ 631,628 631,628 $ 631,628 TOTAL $ 895,995 809,098 1,520,566 $3,225,659 $1,521,841 1,521.841 1,690,117 13,701 1.703,818 $3,225,659 (Concluded) ( ( TillS PAGE LEFT BLANK INTENTIONALLY 67 TY OF SAN RAFAEL. CALIFOm ~ DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1997 REVENUES: Taxes and special assessments Uses of money and property Other Total Revenues EXPENDITURES: Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Bonds proceeds Bonds issuance cost Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES AT BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENTS FUND BALANCES AT END OF YEAR EAST FRANCISCO BOULEVARD ASSESSMENTS DISTRICT $ 13,701 $ 13,701 68 KERNER BOULEVARD ASSESSMENTS DISTRICT $ 300,060 22,190 $ 322,250 210,000 121,480 331 ,480 (9.230) (830,145) (830,145) (839,375) 839,375 SUN VALLEY ASSESSMENT DISTRICT $ 19,663 743 $ 20,406 11,000 10,200 21,200 (794) (51,147) (51,147) (51,941) 51,941 PEACOCK GAP ASSESSMENT DISTRICT $ 265,163 20,325 285,488 211,650 110,540 322,190 (36,702) (36,702) 486,965 $ 450.263 1915 ACT BONDS $ 5,518 5,518 13,000 2,386 15,386 (9,868) (9,868) 78,454 $ 68.586 CIVIC CENTER! NORTHGATE ASSESSMENT DISTRICT $ 183,542 8,958 192,500 110,000 113,025 223,025 (30,525) (392,347) (392,347) (422,872) 422,872 $ ( MARIPOSA 1997 ASSESSMENT REASSESSMENT DISTRICT BONDS 69 $ 22,743 2,275 25,018 10,000 13,830 23.830 1,188 1,188 38,079 $ 39.267 $ $ 26,741 26.741 5,805,000 457,983 6,262.983 (6,236,242) 6,258,639 (20,000) 6,238,639 2,397 2.397 1997 FINANCING AUTHORITY REVENUE BONDS $ 405,473 4,816 410,289 410,289 20,000 (4,985,000) 5,250,000 (196,413) 88,587 498,876 $ 498,876 (Continued) TV OF SAN RAFAEL. CALIFORl' . .. DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1997 1992 AGENCY 1995 REFUNDING AGENCY BONDS BONDS TOTAL REVENUES: Taxes and special assessments $ 886,530 $ 623,999 $ 2,712,691 Uses of money and property 13,585 5,564 105,197 Other 1,361 2,974 4,335 Total Revenues 901.476 632,537 2,822,223 EXPENDITURES: Debt Service: Principal retirement 385,000 170,000 6,925,650 Interest and fiscal charges 1,044,492 462,438 2,336,374 Total Expenditures 1,429,492 632,438 9,262,024 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (528,016) 99 (6,439,801) OTHER FINANCING SOURCES (USES): Operating transfers -In 1,500 57 6,280,196 Operating transfers -Out (231,436) (6,510,075) Bonds proceeds 5,250,000 Bonds issuance cost (196,413) Total Other Financing Sources (Uses) 1.500 (231.379) 4,823,708 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (526,516) (231,280) (1,616,093) FUND BALANCES AT BEGINNING OF YEAR 1,050,799 231,439 3,213,625 PRIOR PERIOD ADJUSTMENTS (525,183) 631,469 106,286 FUND BALANCES AT END OF YEAR $ (900) i 631,628 i 1,703,818 (Concluded) 70 { L . Y OF SAN RAFAEL. CALIFORNL_ KERNER BOULEVARD ASSESSMENT DISTRICT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 REVENUES: Taxes and special assessment Uses of money and property Total Revenues EXPENDITURES: Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCy) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR BUDGET $300,059 22,297 322,356 210,000 121.480 331,480 (9,124) $ (9,124) 71 VARIANCE FAVORABLE ACTUAL CUNFA VORABLE) $ 300,060 22,190 $ 322,250 210,000 121.480 331.480 (9,230) (830,145) (830,145) (839,375) 839,375 $ 1 (107) (106) (106) (830,145) (830,145) $(830,251) ~ ~YOFSANRAFAEL,CALIFOAA_.& SUN V ALLEY ASSESSMENT DISTRICT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 REVENUES: Taxes and special assessment Uses of money and property Total Revenues EXPENDITURES: Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCy) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR BUDGET $19,297 1,111 20,408 11,000 10,201 21,201 (793) $ (793) 72 VARIANCE FAVORABLE ACTUAL CUNFA VORABLE) $ 19,663 743 $ 20,406 11,000 10,200 21,200 (794) (51,147) (51,147) (51,941) 51,941 $ 366 (368) (2) 1 1 0) (51,147) (51,147) $(51,148) !L Y OF SAN RAFAEL, CALIFORN _ PEACOCK GAP ASSESSMENT DISTRICT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 REVENUES: Taxes and special assessment Uses of money and property Total Revenues EXPENDITURES: Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR BUDGET $266,887 19,500 286,387 216,650 103,700 320,350 $ (33,963) 73 VARIANCE FAVORABLE ACTUAL (UNFA VORABLE) $265,163 20,325 285,488 211,650 110,540 322.190 (36,702) 486,965 $450.263 $(1,724) 825 (899) 5,000 (6,840) (1,840) $(2,739) TY OF SAN RAFAEL. CALIFORi _-\ 1915 ACT BONDS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 REVENUES: Taxes and special assessment Total Revenues EXPENDITURES: Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR BUDGET $22,000 22,000 20,000 3,500 23,500 $ (1,500) 74 VARIANCE FAVORABLE ACTUAL CUNFA VORABLE) $ 5,518 5,518 13,000 2,386 15,386 (9,868) 78,454 $68,586 $(16,482) (16,482) 7,000 1,114 8,114 $ (8,368) { !.. 'Y OF SAN RAFAEL. CALIFORN_ _ CIVIC CENTERINORTHGATE ASSESSMENT DISTRICT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 REVENUES: Taxes and special assessment Uses of money and property Total Revenues EXPENDITURES: Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCy) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR BUDGET $183,542 9.131 192,673 110,000 113,025 223,025 (30,352) $ (30,352) 75 VARIANCE FAVORABLE ACTUAL CUNF A VORABLE) $ 183,542 8,958 $ 192.500 110,000 113,025 223,025 (30.525) (392,347) (392,347) (422,872) 422,872 $ (173) (173) (173) (392,347) (392,347) $(392,520) fV OF SAN RAFAEL. CALIFOru\_4~ MARIPOSA ASSESSMENT DISTRICT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 REVENUES: Taxes and special assessment Uses of money and property Total Revenues EXPENDITURES: Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR BUDGET $22,911 1,750 24,661 10,000 13,453 23,453 $ 1,208 76 VARlANCE FAVORABLE ACTUAL CUNF A VORABLE) $22,743 2,275 25,018 10,000 13,830 23,830 1,188 38,079 $39.267 $(168) 525 357 (377) (377) $ (20) f !. 'Y OF SAN RAFAEL. CALIFORN __ 6 1997 REASSESSMENT BONDS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 VARIANCE FAVORABLE BUDGET ACTUAL CUNF A VORABLE) REVENUES: Taxes and special assessment Total Revenues EXPENDITURES: Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCy) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES $ 26,231 $ 26,741 26,231 5,805,000 457,983 6,262,983 26,741 5,805,000 457,983 6,262,983 (6,236,752) (6,236,242) 6,258,639 (20,000) 6,238,639 AND OTHER FINANCING USES $(6,236,752) 2,397 FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR 77 $ 2,397 $ 510 510 510 6,258,639 (20 ,000) 6,238,639 $6,239.149 ·TY OF SAN RAFAEL, CALIFORi .-! 1997 FINANCING AUTHORlTY REVENUE BONDS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 REVENUES: Taxes and special assessment Uses of money and property Total Revenues OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Bond proceeds Bond issuance cost Total Other Financing Sources (Uses) EXCESS (DEFICIENCy) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR VARlANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) $ 407,387 $ 405,473 407,387 (171.757) (171,757) ~ 235.630 $ 78 4,816 410,289 20,000 (4,985,000) 5,250,000 (196,413) 88,587 498,876 498.876 $ (1,914) $ 4,816 2,902 20,000 (4,985,000) 5,250,000 (24,656) 260.344 263,246 { ( TV OF SAN RAFAEL. CALIFORl\_~-\ 1992 AGENCY REFUNDING BONDS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 VARIANCE FAVORABLE BUDGET ACTUAL (UNF A VORABLE) REVENUES: Taxes and special assessment Uses of money and property Other Total Revenues EXPENDITURES: Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Total Other Financing Sources (Uses) EXCESS (DEFICIENCy) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES $ 564,000 $ 886,530 13,585 1.361 564,000 901.476 385,000 1,040,356 1.425,356 (861.356) 385,000 1,044,492 1.429,492 (528,016) 1,500 1.500 AND OTHER FINANCING USES $ (861.356) (526,516) FUND BALANCES AT BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENTS FUND BALANCES AT END OF YEAR 79 1,050,799 (525.183) $ (900) $322,530 13,585 1.361 337,476 (4,136) (4,136) 333,340 1.500 1.500 $334,840 [ LY OF SAN RAFAEL. CALIFORI\ .; 1995 AGENCY REFUNDING BONDS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (CASH BASIS) AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 1997 REVENUES: Taxes and special assessment Uses of money and property Other Total Revenues EXPENDITURES: Debt Service: Principal retirement Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCy) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES AT BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENTS FUND BALANCES AT END OF YEAR BUDGET $ 564,000 564,000 170,000 459,644 629,644 (65,644) $ (65,644) 80 VARIANCE FAVORABLE ACTUAL (UNFAVORABLE) $ 623,999 5,564 2,974 632.537 170,000 462,438 632,438 99 57 (231,436) (231,379) (231,280) 231,439 631,469 $ 631,628 $ 59,999 5,564 2,974 68.537 (2,794) (2,794) 65,743 57 (231,436) (231,379) $065,636) ( TillS PAGE LEFT BLANK INTENTIONALLY 81 TV OF SAN RAFAEL, CALIFOru, ._~ CAPITAL PROJECTS FUNDS COMBnITNGBALANCESHEET JUNE 30, 1997 CAPITAL BEDROOM ASSESSMENT OPEN SPACE IMPROVEMENT TAX DISTRICTS ASSETS Cash and investments $ 479,438 $1,198,472 $ 78,511 $ 730,841 Accounts receivable Taxes receivable Interest receivable Loans receivable Due from other funds 58,076 Land held for resale TOTAL ASSETS $ 479,438 $1,198.472 $ ]36,587 $ 730,841 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ $ 468 $ 4,591 $ 4,784 Due to other funds Deposits Deferred revenue Total Liabilities 468 4.591 4,784 Fund Balances: Reserved 68,394 Unreserved: Designated 479,438 1,129,610 131,996 726,057 Total Fund Balances 479,438 1,198,004 131,996 726,057 TOTAL LIABILITIES AND FUND BALANCES S 479,438 S 1,198,472 $ 136,587 S 730,841 82 PARK CAPITAL PROJECTS $ 104,886 58,000 ~ 162,886 $ 30,673 94,350 58,000 183,023 (20,137) (20,137) ~ 162,886 1985 CAPITAL PROJECT AND ADMINISTRA nON $ 4,254 108,216 2,004.514 ~2,116,984 $ 19,462 79,547 100,000 199,009 2,007,984 (90,009) 1,917,975 ~2,116.984 LOW AND MODERATE INCOME HOUSING $1,490,648 329,357 25,897 380,268 ~2,226,170 $ 1,120 1,120 380,268 1,844,782 2,225,050 ~2,226,170 83 ( 1992 BONDS CAPITAL PROJECT $3,398,033 1,112,840 21,464 ~4,532,337 $ 704,436 704,436 3,827,901 3,827,901 ~4,532,337 1995 BONDS CAPITAL PROJECT $6,751,178 73,969 ~6,825,147 $ 153,252 24,342 177,594 6,647.553 6,647.553 ~6,825,147 TOTAL $14,236,261 1,279,056 329,357 121,330 380,268 58,076 2,004,514 ~ 18,408,862 $ 918,786 198,239 100,000 58,000 1,275,025 2,456,646 14,677,191 17,133,837 ~ 18,408,862 ( .... Y OF SAN RAFAEL. CALIFORN. ...: CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1997 CAPITAL BEDROOM OPEN SPACE IMPROVEMENT TAX REVENUES: Taxes and special assessments $ $ $ 14,918 Uses of money and property 28,034 55,451 Intergovernmental 27,064 Charges for current services Other revenues (1,988) 2,919 Total Revenues 26,046 85,434 14,918 EXPENDITURES: Current: Community development Culture and recreation 4,591 Capital Outlay 30,896 Total Expenditures 30,896 4,591 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 26,046 54,538 10,327 OTHER FINANCING SOURCES (USES): Operating transfers -In 500,000 Operating transfers -Out Total Other Financing Sources (Uses) 500,000 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 26,046 554,538 10,327 FUND BALANCES AT BEGINNING OF YEAR 453,392 643,466 121,669 PRIOR PERIOD ADJUSTMENTS FUND BALANCES AT END OF YEAR ~ 479,438 ~ 1,198,004 ~ 131,996 84 ASSESSMENT DISTRICTS $ 7,748 7,748 104,401 104,401 (96,653) (96,653) 822,710 $ 726,057 PARK CAPITAL PROJECTS $ 4,426 4,850 9,276 46,494 2,770 49,264 (39,988) 32,203 (2,150) 30,053 (9,935) 32,984 (43.186) $(20.137) l 1985 CAPITAL PROJECT AND ADMINISTRA nON $ 41,406 108,216 16,462 166,084 858,918 141.051 999,969 (833,885) (322,572) (322,572) (1,156,457) 3,074,432 $ 1,917,975 LOW AND MODERATE INCOME HOUSING $ 329,358 39,126 36,987 405,471 164,041 164,041 241,430 241,430 1,983,620 $2.225,050 85 ( 1992 BONDS CAPITAL PROJECT $ 317,295 4,059,070 1,510 5,000 4,382,875 59,315 5,936,908 5,996,223 ( 1 ,613,348) 225,739 0,500) 224,239 (1,389,109) 5,217,010 $ 3,827,901 1995 BONDS CAPITAL PROJECT $ 266,828 1,300 268,128 9,413 2,660.459 2,669,872 (2,40 1. 744 ) 328,268 (58) 328,210 (2,073,534) 8,721,087 $ 6,647,553 TOTAL $ 344,276 752,566 4,194,350 2,810 71.978 5,365,980 927,646 51,085 9,040,526 10,019,257 (4,653,277) 1,086,210 (326,280) 759,930 (3,893,347) 21,070,370 (43,186) $17.133,837 f "'Y OF SAN RAFAEL. CALIFO~ TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET JUNE 30, 1997 AGENCY FUND EXPENDABLE TRUST FUNDS LIBRARY AND DEFERRED RECREATION BUSINESS r COMPENSATION FIDUCIARY IMPROVEMENT ASSETS Cash and investments Restricted cash Due from other funds TOTAL ASSETS LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable Deferred compensation payable Total Liabilities FUND BALANCES: Reserved Total Fund Balances TOTAL LIABILITIES AND FUND EQUITY 86 $ 9,138,223 $9,138,223 $ 9,138,223 9.138,223 $9,138,223 $ - $ - $ - $ - $ 13,910 24,342 $ 38,252 $ 20,728 20,728 17,524 17,524 $ 38,252 NEIGHBORHOOD TRUST $ 5,000 $ 5,000 $ - 5,000 5,000 ~ 5,000 TY OF SAN RAFAEL. CALIFORi .~ TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET JUNE 30, 1997 EXPENDABLE TRUST FUNDS LIBRARY FIDUCIARY $ 401,268 $ 401,268 $ 358 358 400,910 400,910 ~ 401,268 87 RECREATION FIDUCIARY $ 28,704 $ 28,704 $ 28,704 28,704 ~ 28,704 TOTAL $ 448,882 9,138,223 24,342 $9,611,447 $ 21,086 9,138,223 9,159,309 452,138 452,138 ~9,611,447 TY OF SAN RAFAEL. CALIFOru, ~ EXPENDABLE TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 1997 LIBRARY AND RECREA nON BUSINESS NEIGHBORHOOD REVENUES: Uses of money and property Intergovernmental Other revenues Total Revenues EXPENDITURES: Current: Community development Culture and recreation Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -In Operating transfers -Out Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR FIDUCIARY IMPROVEMENT TRUST $ 17 2,158 2,175 2,175 (27,999) (27,999) (25,824) 25,824 $ 88 $ 59,342 20,708 80,050 80,493 80,493 (443) (443) 17,967 $ 17,524 $ - 5,000 5,000 5,000 5,000 $ 5,000 LIBRARY FIDUCIARY $ 25,658 25,658 28,645 28,645 (2,987) 27,370 (20.866) 6,504 3,517 397,393 $ 400,910 RECREATION FIDUCIARY $ 28,704 28,704 28,704 $ 28.704 89 ( TOTAL $ 25,675 64,342 22,866 112,883 80,493 28,645 109,138 3,745 56,074 (48,865) 7,209 10,954 441,184 $ 452.138 r "'Y OF SAN RAFAEL. CALIFORl\ AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE FISCAL YEAR ENDED JUNE 30, 1997 DEFERRED COMPENSATION ASSETS: Cash and investments TOTAL ASSETS LIABILITIES: Balance at July 1, 1996 $ 7,348,352 $ 7,348,352 Balance at Additions Deductions June 30, 1997 $ 2,933.132 $1.143,261 $ 9.138,223 $2,933.132 $1.143,261 $ 9,138,223 Deferred compensation payable .:.:..$ -,-,7 ,=34...:...;8=,3:::;..;:5;..:;;2,----",$-=2=,9=3 3=,.:.:13=2"----,$=1=.1,,,-,4=3=,2=6.:...,.1 _-",$-,,-9....:.1.=3=8,=22=.3 TOTAL LIABILITIES =$ =7,=34=8=,3::5::2 ==$::::2=,9:=3=:3,=13=2=====$=1=.1:::::43=,2=:6:=1==$=9=,1:=3=:8,=22=3 90