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Home My WebLink AboutFin Presentation of Financial Statement Information PPTFinancial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 1 Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 2 Introduction • Background • Composition of department • Main responsibilities of department • Our time together Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 3 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 4 Why do we have one? • Compliance requirement for external debt obligations • Independent auditor’s report – financial operations in accordance with accounting principles generally accepted in the US • Review of internal controls and communication to the Council Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 5 When do we do it? • Annual audit • Preliminary fieldwork starts in March • Auditors come out in September after our books are closed • Financial statements are issued in November/December Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 6 What are all these funds? • General Fund (includes Measure E and now Measure R) • Internal Service Funds • Emergency Medical Services • Capital Project Funds • Measure A – Open Space • Measure C – Marin Wildfire Prevention • Measure D – Library Parcel Tax • Measure G – Cannabis Fund • Parking Enterprise Fund • Recreation • Childcare/Preschool Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 7 General Fund (GF) results as of June 30, 2020 • Year ended with operating expenditures exceeding revenues by $2.3 million (excluding General Plan) • Used unassigned (one-time) available funds saved over prior years of $2.2 million • Used approximately $100k of general fund reserve Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 8 Fund balance Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 9 General Fund reserve policy • 10% minimum reserve measured as a percentage of annual operating expenditures • Required reserve was $8,042,891 and balance was $7,800,643 – Plan to pay back in FY2021 • Rule of thumb is 2 months worth of operating expenses Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 10 Revenues, expenses, cashflow highlights FY19/20 GF revenues -$84.2 million $20,651,261 21,118,172 12,197,936 4,029,050 2,824,722 2,410,745 2,194,760 6,010,310 1,034,367 3,047,144 349,563 334,347 2,560,533 704,135 4,737,499 Property Tax & related Sales Tax Sales Tax -Measure E Franchise Tax Business Tax Transient Occupancy Tax CSA #19 Fire Service VLF Backfill Other Agencies (Prop 172, Owner Prop Tax, State Mandate, Other agencies) Permits & Licenses (building, electrical, encroachment, use, alarm) Fine & Forfeitures (traffic, vehicle, etc.) Interest & Rents (investment earnings, rents, etc.) Charges for Services (includes dev't fees and plan review) Other Revenue (damage reimbursements, misc income) Transfers in Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 12 FY19/20 GF revenues - $84.2 million • Same numbers – different format Property Tax & related $ 20,651,261 Sales Tax 21,118,172 Sales Tax -Measure E 12,197,936 Franchise Tax 4,029,050 Business Tax 2,824,722 Transient Occupancy Tax 2,410,745 CSA #19 Fire Service 2,194,760 VLF Backfill 6,010,310 Other Agencies (Prop 172, Owner Prop Tax, State Mandate, Other agencies) 1,034,367 Permits & Licenses (building, electrical, encroachment, use, alarm) 3,047,144 Fine & Forfeitures (traffic, vehicle, etc.) 349,563 Interest & Rents (investment earnings, rents, etc.) 334,347 Charges for Services (includes dev't fees and plan review) 2,560,533 Other Revenue (damage reimbursements, misc income) 704,135 Transfers in 4,737,499 $ 84,204,544 Sales tax breakdown 3.94% 1.56% 1.00% 0.75% 0.25% 0.50% 0.50%0.25% 0.25% 0.25% San Rafael Sales Tax Distribution - Allocation of 9.25% Marin Parks/Open Space/Farmland Preservation - 3/31/2022 SMART in Marin County - 3/31/2029 County-Wide Transportation Transportation Authority of Marin (TAM) - 3/31/2049 County Public Safety (Prop 172) San Rafael Transactions & Use Tax - Measure R - 3/31/30 San Rafael Transactions & Use Tax - 3/31/2034 City of San Rafael County Health and Safety State General Fund Property tax breakdown $0.2278 $0.1922 $0.1705 $0.1342 $0.1223 $0.0796 $0.0734 San Rafael Property Tax Distribution (Each Dollar Spent) Other Entities Marin Community College City of San Rafael Educational Revenue Augmentation Fund (ERAF) San Rafael High Schools County General San Rafael Elementary Schools FY 19/20 GF expenses - $86.5 million 1,879,428 10,817,501 2,467,180 407,878 1,464,443 489,831 921,525 4,052,554 22,839,602 18,775,722 12,486,899 2,689,525 507,904 $6,717,019 Finance Non-Departmental City Manager/City Council City Clerk Digital Services Mgt Serv: Adm,HR City Attorney Community Development Police Fire Public Works Library Economic Development Transfers Out Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 16 FY 19/20 GF expenses - $86.5 million • Same numbers – different format Finance $ 1,879,428 Non-Departmental 10,817,501 City Manager/City Council 2,467,180 City Clerk 407,878 Digital Services 1,464,443 Mgt Serv: Adm,HR 489,831 City Attorney 921,525 Community Development 4,052,554 Police 22,839,602 Fire 18,775,722 Public Works 12,486,899 Library 2,689,525 Economic Development 507,904 Transfers Out 6,717,019 $ 86,517,011 Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 17 FY 19/20 GF expenses by category 33,919,097 17,303,187 8,805,168 6,764,892 1,284,905 1,155,399 1,447,728 2,954,224 6,165,393 6,717,019 Salaries MCERA Benefits Services Supplies Utilities Other Debt Internal Service Charges Transfers Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 18 Pension • Defined benefit retirement plan is administered by MCERA – Established in 1950 – City and 8 other employers • Based on total payroll of $43.5 million, plan contributions were $20 million • Unfunded liability is $137.2 million; 77.3% funded Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 19 Pension continued How are contribution rates determined? 0% funded Toward 100% funding ASSETS AVAILABLE TO PAY BENEFITS NORMAL COST CONTRIBUTION RATES UNFUNDED LIABILITY CONTRIBUTION RATES ACTUARIAL VALUATION REPORT Member Data Plan Provisions Funding Policies Financial Data Actuarial Assumptions Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 20 Other post-employment benefits (OPEB) • City provides health care benefits for retired employees through a defined benefit plan • Unfunded liability is $26.6 million; 45% funded • Benefits have changed over time – Have gone from a high of $752/month to PEMHCA minimum ($143 in 2021) Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 21 External debt Type Amount Purpose Maturity 2018 Lease Revenue Bond $ 52,596,000 Public Safety projects 6/1/2034 2010 Pension Obligation Bond $ 3,320,000 Prefund MCERA obligations 7/1/2025 PG&E $ 1,106,000 Financing of energy- efficient retrofit projects 12/22/2026 2012 Lease Revenue Bond $ 4,606,000 3rd and C Street parking structure 4/1/2033 $ 61,628,000 Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 22 Cashflows and investments • Money is fungible • Insight Investments • Investment Policy updated annually and adheres to the California Government Code Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 23 BUDGET PROCESS AND TIMELINE Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 24 FY21/22 Budget timeline • Late January/Early February – Meetings with departments re: goals and budget building • Mid-February – MCERA board has approved actuary report • March – Finance team analyzing, reviewing and providing feedback on all revenue and expense budgets submitted by departments Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 25 FY21/22 Budget timeline continued • March – Departments assessing Capital Improvement Project (CIP) needs list and finalizing annual goals • April/May – Finalization of goals, CIP and government-wide budget • May/June – Present to City Council Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 26 Forecasting Model sneak peek Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 27 Preview of assumptions Financial Overview February 1, 2021 Nadine Atieh Hade, Finance Director Slide 28 Thank you for this opportunity! 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