HomeMy WebLinkAboutFin Preliminary Citywide Budget for Fiscal Year 2021-2022____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: June 7, 2021
Disposition: Accepted Report and provided direction to staff to return with the final budget for
adoption
Agenda Item No: 8.c
Meeting Date: June 7, 2021
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Nadine Atieh Hade,
Finance Director
Bill Guerin,
Director of Public Works
City Manager Approval: ___________
TOPIC: PRELIMINARY CITYWIDE BUDGET FOR FISCAL YEAR 2021-2022
SUBJECT: PRELIMINARY CITYWIDE BUDGET, CAPITAL IMPROVEMENT PROGRAM, GOALS
AND OBJECTIVES, AND GANN APPROPRIATIONS LIMITS FOR FISCAL YEAR
2021-2022
RECOMMENDATION:
Accept report and provide direction to staff to return with the final budget for adoption.
SUMMARY: This report presents the final proposed citywide budget for Fiscal Year (FY) 2021-22,
beginning July 1, 2021 and ending June 30, 2022.
For the FY 2021-22 budget, ongoing General Fund operational expenditures are supported by current
period revenues and the spending plans of all other funds are supported by projected revenues and
accumulated resources in their respective funds. Proposed appropriations citywide total $127,789,398
and are within the legal spending limit.
BACKGROUND:
This report will focus on the following:
1. Brief status of FY 2020-21 budget performance
2.Proposed Goals and Objectives for FY 2021-22
3. Proposed operating and capital budget presented for all City funds for FY 2021-22
4.FY 2021-22 Appropriations Limit
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
BUDGET ACTION
The purpose of this report is to provide the City Council and community with the preliminary proposed
citywide budget for FY 2021-22 which has been prepared for public comment at the June 7, 2021 City
Council meeting and adoption at the June 21, 2021 City Council meeting. The Goal and Objectives draft
document was presented to the City Council at its public study session meeting on April 30, 2021. The
preliminary Capital Improvement Program was presented to the City Council at the May 3, 2021 City
Council meeting for public comment.
The budget is both a spending plan for the City’s available financial resources and the legal authority for
City departments to spend these resources for public purposes. Through these resources, services are
provided to meet the needs of the community. The City Council and City staff respond to the community’s
needs in part through the budget, which is intended to balance not only revenues and costs, but also
community priorities.
Consistent with the direction provided by the City Council in May 2014, the additional one-quarter percent
sales tax revenues provided by Measure E, effective April 1, 2014 through March 31, 2034, are dedicated
to funding major construction and improvements to public safety facilities (also referred to as the San
Rafael Essential Facilities project).
“GANN” APPROPRIATIONS LIMIT
Article XIIIB of the California Constitution (enacted with the passage of Proposition 4 in 1979 – the Gann
initiative – with modifications under Proposition 111 passed in June 1990, and implemented by California
Government Code sections 7900, and following) provides the basis for the Gann appropriation limitation.
The City’s appropriation growth rate is limited to changes in population and either the change in California
per capita income or the change in the local assessment roll due to new, non-residential construction.
ANALYSIS:
UPDATE ON CURRENT BUDGET/FISCAL YEAR 2020-21
General Fund
Revenues: The original FY 2020-21 budget, adopted on June 15, 2020, projected $75,483,680 in
revenues. This was based on the soundest information available at the time as economists and revenue
experts forecasted reductions in revenue based on the pandemic. The City worked with two revenue
consulting companies (HdL and Management Partners) and other local agencies to project losses for FY
2020-21. Fortunately for the state of California, the federal aid (stimulus checks and extra unemployment
dollars) has played a significant role and revenues are not as impacted as originally expected. the mid-
year budget review (updated budget) presented on March 1, 2021, revenues were increased by
$5,500,000 for a projected balance of $80,983,680 based on higher than anticipated sales and use tax
receipts as well as the passage of Measure R and receipt of CARES Act funds. Current revenues are
projected to be $83,429,224, which is $2,445,544, or 3% above the updated budget, based on activity
through April which is the most up to date information available. This is due to an estimated increase in
property transfer tax of approximately $366,000, higher than anticipated Educational Revenue
Augmentation Fund (ERAF) payments received from the County of $367,970 and continuing increases
in sales tax revenues estimated at approximately $1,711,500.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Expenditures: As part of the approved FY 2020-21 budget, expenses were reduced by $6,686,000 as
the City was preparing for projected revenue losses associated with the COVID-19 pandemic and acted
immediately to reduce expenses. During the fiscal year, an effort by all departments was made to keep
to the original budget except for one request to increase appropriations during the mid-year budget
update for the Public Safety Center total utility and janitorial service costs in the amount of $275,000.
The impacts of COVID-19 have caused a revenue strain on several of the City’s other funds such as
Parking, Childcare, and Recreation. At this point, most funds continue to be self-sufficient by using
available fund balances. However, due to starting the year with no available fund balance and with having
to endure the year with significantly reduced program activity while still utilizing staff for other activities
such as disaster service workers, the Recreation fund will need an additional transfer of an estimated
$500,000 from the General Fund. The Recreation fund receives an annual subsidy of approximately $2
million each year from the General Fund as approved in the original budget. With this additional request,
the total transfer from the General Fund to the Recreation fund amounts to $2,500,000 for FY 2020-21.
Operating results: The proposed increase to revenues of $2,445,544, in addition to the proposed
increase in expenses (transfers out to the Recreation fund) of $500,000 changes the updated budget
estimated positive net result of $3,042,072 to $4,987,616 for FY 2020-21. With the replenishment to
the Emergency reserve fund in the amount of $499,248 (in order to maintain the 10% per City Council
policy), net unassigned funds, (otherwise known as surplus), are forecasted to be $4,488,368 at year-
end. See Table 1 for additional details.
Due to the concerted city-wide effort to stay within the originally budgeted expenditures, the City is
estimating a surplus of which Staff recommend be allocated towards several competing needs such as
starting to right-size employee compensation to comparable agencies, vehicle maintenance, the
maintenance of City owned parks and buildings, infrastructure needs, and the City’s policy focus areas
outlined in the Goals and Objectives section.
Table 1
General Fund
Adopted Budget
FY 2020-21
Approved
Changes Current Budget Proposed Changes Revised Budget
Revenues 75,483,680 5,500,000 80,983,680 2,445,544 83,429,224
Transfers in 3,914,620 3,914,620 - 3,914,620
FY20-21 Resources 79,398,300 5,500,000 84,898,300 2,445,544 87,343,844
FY19-20 P.O. reserve - - - - -
Total Resources 79,398,300 5,500,000 84,898,300 2,445,544 87,343,844
Expenditures 79,581,228 266,557 79,847,785 - 79,847,785
P.O. Rollover - - - - -
Operating Transfer out 2,000,000 8,443 2,008,443 500,000 2,508,443
Total Appropriations 81,581,228 275,000 81,856,228 500,000 82,356,228
Net Result (2,182,928) 5,225,000 3,042,072 1,945,544 4,987,616
Allocations
Use/(Source) of
Emergency Reserves 2,182,928 - 2,182,928 (2,682,176) (499,248)
Unassigned Funds
Available - 5,225,000 5,225,000 (736,632) 4,488,368
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
Other Funds
The evaluation of other funds will continue with the year-end close. Any required adjustments will be
presented to the City Council as part of the year-end update which staff will present to the City Council
in September 2021.
GOALS AND OBJECTIVES
Each year, the City Council establishes a set of goals, objectives, and key implementation tasks (Goals
and Objectives) that guide decision-making. This year, the City created four new Policy Focus areas to
highlight overarching policy priorities while retaining five City Service areas to highlight operational efforts
that will be of particular focus in FY 2021-22. The four Policy Focus areas and five City Service areas
are listed below:
Policy Focus Areas
• Economic Recovery: Building back our economy stronger and more resilient than before.
• Housing & Homelessness: Creating new housing, keeping people in their homes, and use a
“Housing First” model.
• Racial Equity: Working to achieve racial equity and advance opportunities for all.
• Sustainability, Climate Change & Disasters: Reducing greenhouse gas emissions while
mitigating and adapting to climate change.
City Service Areas
A. Neighborhood and Economic Vitality: Create and preserve a healthy economy and sustain vibrant
neighborhoods, Downtown, and other business areas.
B. Quality of Life: Serve and strengthen community relationships by providing literary, artistic,
recreational, and cultural experiences for all residents and improving resident engagement and
governmental transparency.
C. Public Safety: Prevent and respond to emergencies through essential facility improvements and
community and organizational emergency readiness.
D. Public Assets: Improve and preserve public assets by sustaining effective levels of core
infrastructure while reducing traffic congestion by expanding bicycle, pedestrian, and transit options.
E. Foundational Services: Sustain organizational viability and exemplary service through short and
long-term financial success, organizational excellence and succession planning, and technology to
improve efficiency and service levels.
Each Policy Focus and City Service area has a set of objectives, each of which, has a subset of key
implementation tasks. These objectives and key implementation tasks provide a basis for making
resource allocation decisions during the budget process and serve as a focal point for assessing and
coordinating the City’s various short and long-term strategic planning. The resources required to perform
each objective and task are summarized in the Time and Intensity graphic within the Goals and
Objectives. Additionally, the Policy and City areas address the community’s needs and priorities, as well
as reflect an evaluation of community condition and the government’s operating environment.
After a collaborative process that included all City departments, City staff presented the draft Goals and
Objectives for FY 2021-22 to the City Council at its study session on April 30, 2021. The feedback
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
provided in that discussion were incorporated into the Goals and Objectives document hyperlinked here
(Attachment 1) for the consideration by the City Council.
PROPOSED FISCAL YEAR 2021-22 CITYWIDE BUDGET
HIGHLIGHTS
Citywide Budget: The total proposed FY 2021-22 expenditure budget for the City is
$127,789,398 (Attachment 2, Exhibit I). This sum reflects all funds and operations for the City,
including active capital projects. The Capital Improvement Program has planned expenditures of
$22 million for the year, of which staff reports will be submitted for approval of major projects and
their associated funding source. Appropriations are supported by FY 2021-22 revenue and other
sources projected at $123,850,111, as well as by fund balances retained from previous periods
for capital projects.
General Fund Budget: The proposed General Fund expenditure budget comprises $89,562,734
for operations, an increase of approximately $7.2 million over the prior year adjusted budget,
supported by revenues, transfers in, and reserves, projected at $89,616,102, resulting in a surplus
before allocations of $53,368.
State Budget Impacts: On May 14, 2021, Governor Gavin Newsom signed the May revision to
the FY 2021-22 state budget, which totals approximately $203 billion in spending. The May
revision projects a $75.7 billion surplus, contrasting against a projected $54 billion deficit in the
prior year’s budget. City staff will look for any opportunities to pursue additional assistance and
available funding.
o COVID-19: In recognition of the disproportionate impact the COVID-19 Pandemic has had
on low-income Californians and small businesses, the Budget proposes $3 billion of
pandemic relief for immediate action in January of 2021. Included in the package is $2.4
billion for Golden State Stimulus (a $600 payment to low-income workers), an additional
$2 billion for grants to small businesses bringing the total to over $2.5 billion, as well as
fee relief for impacted industries such as restaurants and personal services.
o Housing: In January 2021 the COVID-19 Tenant Relief Act was signed, creating the
California COVID-19 Rent Relief Program providing up to $2.6 billion in federal assistance
to those facing financial hardships as a result of the pandemic. The federal American
Rescue Plan Act in March of 2021 provides an additional $2.6 billion for a total of $5.2
billion in federal rental relief aid. The May Revision also proposes $1.75 billion to help
support affordable housing projects.
o Homelessness: The budget extends project Homekey, an effort to acquire motels for
homeless housing, with $2.75 billion in one-time funds to purchase additional motels,
develop short-term community mental health facilities, and purchase or preserve housing
dedicated to seniors. The revision adds $40 million in one-time funds for the Homeless
Coordinating Financing Council to provide grants and technical assistance to local
jurisdictions to develop action plan that will address family homelessness.
o Transportation: President Biden’s proposed American Jobs Plan is set to provide a
massive investment in broad infrastructure improvements. The May Revision proposes
investing an additional $11 billion in the transportation system and related zero-emission
vehicle efforts. Included is $2 billion through 2028 to advance State Highway Operation
and Protection Program projects, Interregional Transportation Program projects, and local
road and bridge investments.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
o Emergency Preparedness and Response: The Revision proposes $98.4 million and 224
positions for Cal OES to address disasters across the state as well as an additional $133.9
million for California Disaster Assistance Act funding, a Southern Regional Emergency
Operations Center, and Wildfire Forecast and Threat Intelligence Center. The revision
also includes $38.9 million to augment CAL FIRE’s resources for the 2021 fire season.
o Environmental Quality: The budget proposes a $1.5 billion comprehensive strategy to
achieve the state’s zero-emission vehicle goals by 2035 and 2045. An additional $1 billion
is proposed to support a coordinated forest health and fire prevention strategy that
maximizes technology and science-based approaches to protect state forestlands. The
budget also includes $500 million in one-time funds for toxic site cleanup and
investigations.
o Public Safety: At the local level, the May Revision includes $9 million in ongoing funding
and $100 million one-time funding for the CalVIP program providing grants to cities and
community-based organizations to support services such as community education,
diversion programs, outreach to at-risk transitional age youth, and violence reduction
models.
American Rescue Plan Act: On March 11, 2021, President Biden signed into law the American
Rescue Plan Act (ARPA). The ARPA provided $65.1 billion in direct aid to every city, town, and
village across the country to help stabilize communities. The City of San Rafael has been
allocated an amount of $16,088,886. Of this one-time money, the first 50% of the allocation has
been received and the second 50% will be distributed a year from now. Jurisdictions have until
December 31, 2024 to spend the funding. On May 17th, the Treasury Department issued an
Interim Final Rule document that provides guidance on what the funds may be used for. However,
this document is not final and will be open for public comment through July 16, 2021. At this point,
staff does not recommend bringing an ARPA Funding Plan to the City Council for approval since
there are many eligibility and reporting questions pending that need to be addressed by the
Treasury Department. However, in preparation for the utilization of the funds, staff proposes to
prioritize allocations on unfunded initiatives and projects related to the City’s policy focus areas
that are one-time in nature. Staff has prepared a list of high priority needs below that address
Economic Recovery, Housing & Homelessness, Racial Equity and Sustainability, Climate Change
& Disasters. To provide an order of magnitude, a dollar symbol is placed after each item with one
($) representing an estimated cost of under $500,000, two ($$) a cost over $500,000 and under
$1,000,000, three ($$$) a cost over $1,000,000 and under $3,000,000 and 4 ($$$$) a cost over
$3,000,000.
o Economic recovery for small businesses including action items that result from the
Economic Development Strategic Plan or other special initiatives ($)
o Dedicate resources that keep racial equity work at the forefront of everything we do ($$$)
o Support housing and homelessness initiatives including new homelessness programs and
the facilitation of new housing ($$$)
o Support climate change, sustainability and adaptation projects to reduce greenhouse
emissions while mitigating and adapting to climate change ($$$$)
o Fund key community infrastructure projects such as a synthetic turf at the Pickleweed play
fields and replacing pump stations ($$$$)
o Fund key technology infrastructure to replace and update outdated software systems
($$$$)
Lastly, projects where the use of ARPA funds is eligible will be brought to the City Council for
approval prior to commencement. Staff recommends that ARPA funding received by the City and
any expenditures thereof be separately tracked and accounted for to ensure allocation in
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7
accordance with the requirements and limitations on expenditures of those funds as required by
the Act.
General Fund
The City’s General Fund accounts for most of the major services to residents and businesses (such as
police, fire suppression and prevention, planning, building, library, parks, streets, engineering, traffic
enforcement and management, and cultural programs). The General Fund operating-related
appropriations for FY 2021-22 total approximately $89.6 million. These appropriations comprise $87.6
million of operating expenditures and $2 million of transfers to community services in support of the
Recreation Fund.
The appropriations are supported by $87.9 million in projected revenues and $1.8 million of transfers
from other funds. The transfers include a $635 thousand reimbursement from Gas Tax for support of
street maintenance salaries; $683 thousand from the Employee Retirement internal service fund for debt
service on the outstanding pension obligation bonds; and $436 thousand from the Parking Services
Enterprise Fund for administrative support.
The following table (Table 2) summarizes the detailed information provided in Exhibit II and presents
the proposed FY 2021-22 budget with a comparison to the projected FY 2020-21 budget.
Revenues available for operations are projected to be $4.4 million, or 5.3% higher than those of the FY
2020-21 year. This is mainly due to the receipt of Measure R funds for the entire year versus one
quarter in FY20-21 and an increase in transient occupancy tax of approximately 20%. Other revenue
items are budgeted for modest gains above FY20-21 projections, for example a 2% increase is
budgeted in property tax revenues and 1% in sales tax revenues.
Expenditures are projected to increase by $7.7 million, or 9.7% over those of the FY 2020-21 projected
budget. Increases to the FY 2021-22 expense budget include approximately $6.1 million in personnel
expenses as the furloughs lapse ($700,000), frozen positions became unfrozen and funded
($1,300,000), and wages increase as part of labor negotiations and as the City works to meet
compensation goal needs ($2,200,000). Respectively, pension expenses determined by MCERA also
increased as the composite rate for the City of San Rafael will be 62.57 percent, a 1.8 percent increase
from the current rate of 60.77 percent ($1,900,000). Other increases in the budget of approximately
$1,900,000 are to support the City’s goals and objectives, primarily focused on the policy focus areas.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8
Table 2
Revenue Trends and Assumptions:
Sales and Transaction & Use Tax:
The COVID-19 pandemic has not caused the severity in recessionary impact many had feared in Sales
and Use tax remittances. Low interest rates have buoyed construction and auto sales as well as the
timely passage of the Wayfair ruling dramatically increased remittances from the County pool from online
transactions, now accounting for the City’s largest Major Industry Group for tax remittances. Growth in
auto sales and building and construction is projected to slow in FY 2021-22 where restaurants and hotels
and fuel and service stations are projected to grow 23.9% and 15.5%, respectively, as we project to
recover from the pandemic.
With the assistance of HdL Companies, the City’s sales tax consultant, recurring sales tax revenues are
estimated to increase slightly from $22.3 million as currently proposed in the FY 2020-21 budget, to $22.5
million in FY 2021-22, an increase of approximately 1 percent. Sales taxes account for approximately
26% of the City’s General Fund revenues.
Revenues from the Measure E Transactions & Use tax, which applies to most local retail sales, are
estimated to rise from $12.5 million as currently proposed in the FY 2020-21 budget, to $12.8 million in
Projected Proposed $ Change
from
% Change
from
General Fund FY 2020-21 FY 2021-22 previous year previous
year
Revenues $ 83,429,224 $ 87,861,080 $ 4,431,856 5.3%
Transfers in 3,914,620 1,755,022
Total Resources $ 87,343,844 $ 89,616,102 $ 2,272,258 2.6%
Expenditures $ 79,847,785 $ 87,562,734 $ 7,714,949 9.7%
Transfers out – operating 2,508,443 2,000,000
Total Operating Uses $ 82,356,228 $ 89,562,734 $ 7,206,506 8.8%
Net Results before Allocations $ 4,987,616 $ 53,368
(Source) / Use of reserved funds
Emergency reserve (499,248) (720,651)
Total Results $ 4,488,368 $ (667,283)
Allocation of unassigned funds - 667,283
Net After Allocations $ 4,488,368 $ 3,821,085
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9
FY 2021-22, an increase of 2 percent. One-third of these funds are allocated to service debt related to
the 2018 Lease Revenue Bonds. Measure E revenues account for about 15% of the City’s General Fund
revenues. Revenues from the new Measure R Transactions & Use tax are projected to generate $4.3
million in its first full year of implementation.
The State recently informed San Rafael and other local agencies that a taxpayer, which allocates the
majority of its tax revenue through the countywide use tax pools, may be reporting incorrectly. The
State said in their communication that they are looking into the matter and depending on their ultimate
determination, some portion of this taxpayer’s revenue will shift outside of the Marin pool. This would
have the result of dampening some of the growth in revenue allocations that San Rafael would have
otherwise received from this use-tax pool. The amount of any potential shift, however, is unknown.
This change in taxpayer filing is expected to begin sometime in 2021. In their most recent sales tax
forecast HdL calculated an estimated loss of San Rafael’s pool allocations for calendar year 2021.
Staff will continue to update City Council on any material shifts.
Property Tax:
Property taxes are currently projected to modestly increase by 2% over the prior year for a total of $22.6
million. Property tax makes up 26% of the City’s General Fund revenues.
Other General Fund Revenues:
Other revenues (including business tax, transient occupancy tax, development fees, permits, and
charges for services) are expected to show a modest increase of 3% when compared to the prior year’s
budget. These revenues account for 29% of the City’s General Fund revenues.
Expenditure Trends and Assumptions:
As we look forward to the recovery from the pandemic, we are projecting general fund expenditures to
grow by 9.7% in FY 2021-22. The growth in expenditures incorporates increases in personnel costs as
we increase compensation based on collective bargaining contract commitments. General Fund
budgeted contributions to the Marin County Employees Retirement Association (MCERA) are projected
to increase by $2.3 million, or 14% when compared to the previous year. The increase is attributable to
unfreezing positions as well as increased compensation coupled with an increase of 1.8% in the City’s
net contribution rate. Pension expenses represent approximately 16.7% of total citywide expenditures,
and approximately $18.6 million, or 20.7%, of an $89.6 million general fund budget.
Capital Spending and Other Funds
Capital Improvement Program (CIP)
The CIP is a multi-year planning tool used to identify and implement the City’s capital needs over the
upcoming three-year period: FY 2021-22 through FY 2023-24. The CIP document summarizes the City’s
planned capital and infrastructure improvement projects, including their funding sources, and prioritizes
projects after analysis and coordination with other City departments to ensure that all department needs
are represented. Project selection and priority is based on recommendations by a Working Group
representing various City departments to accommodate high priority needs, which focused on life/safety,
maintenance and repair, public and City Council input, and other factors. The CIP is intended to provide
a comprehensive three-year project list for the City’s known capital and infrastructure needs.
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The general categories within the CIP are as follows:
• City-Owned Properties: City facilities including buildings, parking garages and lots
• Drainage: Stormwater systems including roadway drainage and the City’s 12 stormwater pump
stations
• Parks: Park infrastructure and facilities including playgrounds, recreation equipment, and
restrooms
• Streets/Transportation: Roadway improvements including construction, resurfacing, and
maintenance of existing bicycle and pedestrian facilities including sidewalks and bike lanes.
• Transportation: Transportation projects are separated out from Streets/Transportation projects.
Transportation projects include traffic and signal improvements that increase traffic flow and
capacity, as well as any circulation improvements that expand bicycle/pedestrian thoroughfare
beyond the existing facilities in place. For example, new multi-use pathways and the expansion
of existing sidewalk.
On May 3, 2021, Public Works presented the preliminary three-year CIP for Fiscal Year (FY) 2021-22
through FY 2023-24 for discussion and review by the City Council. The purpose of the presentation was
to provide the community members and the City Council an opportunity to participate in reviewing and
sharing feedback relating to the CIP.
Major new projects/studies identified in the FY 2021-22 to FY 2023-24 CIP include:
• 20 Meyer Road Slide Repair
• North San Pedro Medians at SMART Railroad Crossing
• Center Street Resurfacing – Phases I and II
• Francisco Blvd West at Irwin St: Trash Rack
• Sun Valley Park Playground Improvements
• Grand Ave (Second St to Fourth St) Class IV Cycle Track
• Bike & Ped Master Plan 2022 Update
There are currently twelve major annual funding sources for the CIP:
Figure 2
Fund # Fund Name Description
205 Stormwater
Fund
Established to fund stormwater maintenance, programs, and
improvements throughout the City. Fund #205 receives annual revenues
from the City’s Stormwater Activity fee (Municipal Code Chapter 9.40).
206 Gas Tax;
Measure AA;
Senate Bill 1
Funds
The Gas Tax is revenue collected and subsequently distributed by the State
of California based on a percentage tax on each gallon of gas purchased in
San Rafael. Gas Tax may be used for capital projects or maintenance on local
streets, roads, traffic, and bicycle/pedestrian facilities. Additionally, local
sales tax, passed by
voters in 2018 as Measure AA, contributes to a portion of this fund for
roadway improvement projects.
208 Childcare Fund Projects identified in the CIP as utilizing Childcare Funds are restricted to
facility improvements at the City’s childcare centers.
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235 Baypoint
Lagoon
Assessment
District
The Baypoint Lagoons Lighting and Landscape District was formed to protect
and enhance wildlife habitat and water quality in Baypoint (Spinnaker) Lagoon
and the adjacent diked salt marsh.
236 Loch Lomond
Assessment
District
The Loch Lomond (Melo‐Roos) Assessment District was established in 1992
to pay for the repair and maintenance of the stormwater
system infrastructure in the District.
240 Parkland
Dedication
This fund was established to account for long‐term developer deposits
used to acquire and increase capacity of the City’s park
infrastructure.
241 Measure A Measure A is a nine‐year ¼ percent transactions and use tax managed by the
County of Marin. The tax is restricted to care for parks and open spaces. The
Department of Library and Recreation, in consultation with the Parks and
Recreation Commission, provides input each year as to which parks projects
should be prioritized to receive Measure A funding.
246 Traffic
Mitigation Fee
Traffic Mitigation Fees are an impact fee charged to a developer in
connection with the approval of a private land development project with the
purpose of offsetting or subsidizing public improvements
made necessary by the private development. The City utilizes Traffic
Mitigation Fees for circulation‐related projects identified in the General Plan.
420 Measure E Measure E was passed by San Rafael voters in November 2013 extending an
existing 0.5% sales tax for 20 years and adding 0.25% (25 cents on a $100
purchase). In February 2014, the City Council directed staff to set aside the
revenues from the added quarter percent to fund public safety facilities
improvements.
501 Parking
Services
Projects identified in the CIP as utilizing Parking Services Funds are restricted
to parking‐related projects, including maintenance and
upgrades at City parking garages and parking lots.
603 Building
Maintenance
The Building Maintenance Fund supports routine maintenance and capital
projects associated with the City’s buildings, parks and other facilities. The
Building Maintenance Fund is an internal revenue fund, which means
General Fund monies are the sole source of revenue.
Grants
(various)
The City actively seeks grant funding for capital projects and programs. Grant
funding is available from regional, state, and federal agencies for safety,
transportation, emergency response, and other types of projects.
While some CIP projects are grant-funded, most are not and are paid for through Funds 205
(Stormwater), 206 (Gas Tax), 246 (Traffic Mitigation), and 603 (Building Maintenance). Within each fund
type is an Operating Budget which consists of expenses related to maintenance of infrastructure,
equipment purchasing, miscellaneous contractual services, Annual Programs, and other non-project
related work. Additionally, after deducting the Operating Budget from the total available funding in each
fund type, staff allocated a 15-percent contingency of the remaining funds to provide a buffer for
unanticipated expenses which may arise mid-year.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 12
Beginning in March 2020, the COVID-19 pandemic created financial burdens for the City, its residents
and businesses. Inevitably, the economic downturn resulted in a reduction of the City’s revenues,
impacting CIP funding revenues in Funds 206 (Gas Tax), 208 (Childcare), 241 (Measure A-Parks), and
501 (Parking Services). The CIP for fiscal year 2020-21 assumed a 30-percent reduction in gas tax
revenues as many sectors of the economy closed and the community sheltered in place. Staff are pleased
to report that gas tax revenues were better than forecasted with an additional $600,000 received above
what was anticipated. Unfortunately, this trend did not continue for the other mentioned City funds.
Staff are not anticipating any revenue reductions in Funds 206 (Gas Tax) or 246 (Traffic Mitigation) this
fiscal year and have budgeted accordingly when recommending projects in the CIP. The two funds that
continue to be impacted are Funds 208 (Childcare) and 501 (Parking Services). The Library and
Recreation Department as well as Parking Services had to suspend or postpone planned CIP projects
last fiscal year and will again do the same until revenues return to appropriate levels.
As has been noted in prior year CIPs, the long-term capital and infrastructure improvement needs for
City-owned property, parks, and drainage far exceed the available revenues each year. Therefore, a
considerable number of projects are identified as real capital and infrastructure needs (and maintained
on the CIP project list) but are categorized as “Unfunded”.
Historically, staff transfers a flat amount each year from the Gas Tax to the General Fund to support
personnel costs of Streets Maintenance staff, which we propose to do again this year in the amount of
$635,000. Personnel costs of employees preforming street and road maintenance and repairs total over
$2M annually in the General Fund and are an allowable use of State gas tax monies.
The complete, final draft of the CIP is hyperlinked here (Attachment 3).
Capital Project Funds
These funds are dedicated to the tracking and reporting of capital projects. The most significant capital
project activity is the Public Safety Essential Facilities program, for which in the last year has completed
projects such as the construction of the new Public Safety Center and the rehabilitation of Fire Stations
52 and 57. This project has been funded from the following sources: (1) direct use of designated Measure
E general tax funds; (2) Lease Revenue Bonds, Series 2018, which will be repaid from designated
Measure E general tax funds; and (3) allocations from the paramedic tax used to fund capital projects. In
FY 2021-22, the City expects to start construction on the rehabilitation of Fire Stations 54 and 55.
Special Revenue and Grant Funds
These funds have restricted uses, based on their respective sources. One significant fund in this group
is the Emergency Medical Services/Paramedic Fund (EMS). The fund has planned expenditures of $8.6
million for the upcoming fiscal year, of which $5.1 million, or 60%, comes from the Paramedic Tax. The
balance of the funding of this activity comes primarily from third-party recovery for emergency medical
response and transport services. The spending plan requires no change in the level of support from
taxpayers in San Rafael, County Services Area #13, and County Services Area #19, and Marinwood
Community Services District.
The EMS fund is projected to retain $801,476 in unallocated fund balance on June 30, 2022. This balance
serves as an operational reserve equal to ten percent of expenditures. Funds not needed for the
operations reserve are used to fund capital improvements that directly support the delivery of emergency
medical transport services (e.g., Phase II essential public facilities projects, such as Fire Stations 54 and
55). The tax rate for fiscal year 2021-22 remains unchanged from the prior year, however, expenditure
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 13
growth is projected to outpace revenue growth in future periods and further increases to the San Rafael
tax rate may be necessary to support the program in the future.
The City’s Cannabis Business Tax is also reported in a special revenue fund. San Rafael has several
licensees in active commerce. The City anticipates the receipt of $500,000 in excise tax revenues for
the FY 2021-22 year in which the fund will incur $500,000 in qualifying expenses. The program is
expected to generate revenues of approximately $640,000 as it is forecasted to generate associated
sales tax and licensing fees of $140,000 received by the General Fund.
The Measure A Open Space Program is in its ninth year. Funding for this activity is primarily provided by
a nine-year, county-wide sales tax that is managed by the County of Marin, with the City providing
discretionary contributions as needed. The focus for FY 2021-22, for which $472 thousand in revenues
is projected, remains on park capital improvements and open-space enjoyment and safety. The FY 2021-
22 Measure A – Open Space Workplan was presented and approved separately at the City Council
meeting of May 3, 2021.
Measure D, the successor Library parcel tax to Measure C, is entering its fifth year. This special revenue
source has successfully expanded service levels, relative to those established under Measure C
(previous Library parcel tax). The purpose of the tax is to “augment the capacity of the City of San Rafael
to provide quality library services to its residents.” Measure D provides for expanded book and periodical
purchases, including e-books; funds events and classes for all ages, and provides for supplementary
technology supplies. Capital reserves were established under Measure C (previous Library parcel tax)
for facility-related uses.
The Recreation and Childcare Funds are anticipating spending plans of $4 million and $4.2 million,
respectively. Revenue projections will depend on the reopening which, although underway, could see
setbacks should coronavirus case rates rise again. Management will keep the City Council apprised of
any events affecting the performance of these funds.
Measure C, a historic wildfire prevention measure is entering its second year. Funding for this activity is
provided by a ten-year parcel tax and is managed by the Marin Wildfire Prevention Authority, a Joint
Powers Authority. The City of San Rafael is expected to receive $1,826,000 in revenues to support
coordinated wildfire prevention including early detection, warning and alerts; reducing vegetation;
ensuring defensible space around homes, neighborhoods and critical infrastructure; and improving
disaster evacuation routes/procedures.
Other significant funds in this category include Gas Tax and Storm Water Funds. The spending plans for
these funds were developed in conjunction with the Capital Improvement Program described previously.
Costs for new CIP projects are not included in the budget until they are brought to Council for approval
at time of commencement.
Parking Fund
The Parking Fund is a self-sustaining enterprise fund whose revenues are dedicated to parking services.
Currently, parking operations are funded via parking fees and fines, and fund balance is the only resource
with which to cover capital improvements. The parking structures and lots have deferred maintenance
issues that will need to be addressed in the coming years. In 2014, the Public Works Department engaged
an engineering firm to evaluate current conditions of the garage structures and provide recommendations
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 14
for repair and maintenance items. The study determined that the four city-owned structures (3rd/Lootens,
3rd/A, 3rd/C, 5th/C parking structures) require significant structural repairs due to deferred maintenance.
The FY 2021-22 operating budget for this fund is $4.9 million, inclusive of operating transfers.
Internal Service Funds and Capital Replacement Funds
These funds are used to manage services that are delivered within the organization. For example,
computer replacement, employee benefits, workers compensation, general liability, capital replacement,
technology replacement and vehicle replacement are funded via internal charges to the funds that utilize
these respective services.
Successor Agency
Prior to the state-initiated dissolution of the Redevelopment Agency in January 2012, the City Council
met as the Redevelopment Agency and approved its annual budget as part of the citywide budget
process. Under the current legislation, the Successor Agency is not required to prepare an annual budget.
Funding for the Successor Agency follows a different process specified in the new law: funding must be
approved by the Successor Agency’s Oversight Board and the California Department of Finance for six-
month periods. The economic development-related functions of the former Redevelopment Agency have
been fully transferred to the City Manager’s Office. The San Rafael Successor Agency Oversight Board
has approved allowable administrative expenses of $144,000 in FY 2021-22 for City staff time and other
costs associated with the dissolution of the former Redevelopment Agency, although this amount is
expected to be reduced, and eventually eliminated, in future years.
Status of Pension Funding
The City’s Pension Funding Policy requires that the Finance Director and City Manager report on the
status of pension funding as part of the annual budget adoption process.
The most recent pension actuarial valuation was prepared as of June 30, 2020 and approved by the
MCERA Board on February 10, 2021. This valuation was used to determine the contribution rates for FY
2021-22. The composite rate for the City of San Rafael will be 62.57 percent, a 1.8 percent increase from
the current rate of 60.77 percent. The budgeted pension contribution for FY 2021-22 provides full funding
for the required contribution. The valuation also reported an unfunded actuarial liability of $148.2 million
for the City, representing a funded ratio of 76.2%.
MCERA’s investment target (discount rate) was updated from 7.00% to 6.75% during the measurement
period. The City has dedicated a portion of its employee retirement reserve to buffer the impact of
unexpected increases. This reserve, which currently totals $2.8 million, is also used to accumulate
payments for debt service on the $4.5 million pension obligation bonds issued in 2010; and for optional,
supplementary payments to MCERA.
Status of Other Postemployment Benefit (OPEB) Funding (Retiree Healthcare)
The City’s OPEB Funding Policy was adopted on September 18, 2017. The Policy cites the City’s goal
of fully funding the Actuarially Determined Contribution (ADC) each year. The budgeted OPEB
contribution for FY 2020-21 provides full funding for the required contribution. The contribution is based
on an investment target (discount rate) of 6.75%. The most recent actuarial valuation, as of June 30,
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 15
2019, reports $21.8 million in plan assets offset by $48.3 million in actuarially accrued liabilities, leaving
an unfunded actuarial liability of $26.5 million. The City’s ADC for FY 2021-22 is $3.1 million.
General Fund Balance and Reserves
Under the proposed FY 2021-22 budget, all funds are projected to have a positive fund balance as of
July 1, 2021, as well as at June 30, 2022.
General Fund Emergency Reserves are projected to increase from $8.3 million to $9 million, or 10% of
General Fund expenditures, maintaining the minimum target reserve levels. There are sufficient funds
retained in the general liability and workers compensation reserves to fund projected claims in those
respective areas.
GANN APPROPRIATIONS LIMIT
The Appropriations Limit for each year is based on the prior year Appropriations Limit, adjusted by factors
that incorporate changes in cost of living and population. For FY 2021-22, the City is using a 5.73 percent
increase in California’s per capita personal income from January 1, 2020 to January 1, 2021 (this figure
is provided by the California Department of Finance). For the change in population, the City is using
negative 0.43 percent – representing the change in population for Marin County, which is higher than
San Rafael’s figure of negative 0.62 percent for the period January 1, 2020 to January 1, 2021 (provided
by the State of California Department of Finance).
The attached Exhibit A establishes the new Appropriations Limit for FY 2021-22, which has been
calculated to be $150,770,339. The actual budget subject to the limitation excludes self-supporting funds,
capital improvement funds, capital outlay grant funds, and specific exclusions such as the Gas Tax Fund.
The FY 2021-22 appropriations subject to the GANN Limit is $82,522,271 (Attachment 4, Exhibit B).
Therefore, the portion of the City’s budget appropriation that is restricted by the GANN limit is
$68,248,068 under the legal limit.
STAFFING
For FY 2021-22, all departments are focused on finding ways to maximize the capacity of our current
staff by re-examining the way our teams are currently organized, and by creatively implementing
process improvements cross departmentally. This is especially important as the City reopens and
reimagines the way it provides services with the goal of equity amongst all that we do.
In the last quarter of the FY 2019-20, in preparation for the unknown financial repercussions of the
COVID-19 pandemic, the City froze vacant positions and offered a Voluntary Separation Retirement
program. The savings of these actions were presented in the FY 2020-21 budget and were adhered to
throughout the year which successfully decreased expenses by more than $1,200,000. For FY 2021-
22, staff recommends the frozen positions to be reinstated and reviewed for hiring on a per position
basis. Additionally, a furlough was implemented for FY 2020-21 which will not be carried into FY 2021-
22.
The Department of Public Works is proposing to convert one job classification into a new job
classification in order to meet the current service needs. With the additions of the 40,000 ft2 Public
Safety Center, Fire Station 52 and 57, there is an increased workload for the City’s facility maintenance
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 16
team. The staffing needs associated with maintaining these new facilities are not currently adequate.
Therefore, the department proposes to convert the vacant Public Works Dispatcher position to a
Facilities Maintenance Worker position. The cost of this change will be offset by the reduced facility
maintenance professional services costs. The proposed changes have been discussed with the labor
representatives of the affected bargaining units.
The City’s current approved level of staffing for FY 2020-21 is 411.73 which is six more positions than
what had been approved at the original budget in June of 2020. The six positions approved throughout
the year are all funded through non-general fund operations and consist of one San Rafael Sanitary
District position which does not come from City funds and the other five positions are fixed term wildfire
specialists funded through Measure C, the Wildfire Prevention program.
The history and detail for the 411.73 FTE/positions being proposed for FY 2021-22 are presented in
Attachment 2, Exhibit III. In summary, the FY2021-22 personnel proposal ends with 411.73 full-time
employees which remains the same as the current FTE. There are no requests for additional positions
at this time.
FISCAL IMPACT: The preliminary fiscal year 2021-22 budget has been prepared for all funds. Funding
sources are sufficient to support the preliminary spending plans presented. There is no fiscal impact
associated to the acceptance of this report.
RECOMMENDATION: Accept the report and direct staff to return on June 21, 2021 with a final
citywide budget incorporating any modifications or changes discussed at the Council Meeting.
ATTACHMENTS:
1. Preliminary FY 2021-22 City Council Goals & Objectives
2. Budget Exhibits I, II and III
3. Capital Improvement Program: FY 2021-22 through 2023-24
4. Gann Appropriations Limit, and Exhibits A and B
Attachment 1
Preliminary FY 2021-22 City Council
Goals & Objectives
https://storage.googleapis.com/proudcit
y/sanrafaelca/uploads/2021/06/1.-
Attachment-1-Draft-Goals-Objectives-
2021-2022.pdf
EXHIBIT ICITY OF SAN RAFAEL746,929.00 +$400k fund 713 397,461 Fund 490346,929.00 (400,000.00) 298,012.00 Estimate from FY21Total Total FY 2021-22 PROJECTED BUDGETJune 30, 2021 Operating OperatingJune 30, 2022FUND FUNDProjectedand Capital Transfers Total and Capital Transfers to TotalProjected#NAMEBalanceRevenue In Resources Budget Other Funds AppropriationsBalanceGENERAL OPERATING FUNDS:001 General Fund Available Balance 4,488,368 $87,861,080 $1,755,022 $89,616,102 87,562,734 $2,000,000 $89,562,734 $4,541,737218 General Plan Special Revenue Fund 1,015,042 1,136,203 1,136,203 928,586 928,586 1,222,659 SPECIAL REVENUE & GRANT FUNDS:205 Storm Water Fund 729,468 834,456 834,456 1,145,725 1,145,725 418,199 206 Gas Tax3,456,912 5,528,495 - 5,528,495 4,201,062 635,000 4,836,062 4,149,345 207 Development Services 1,224 225 225 - - 1,449 208 Child Care 128,153 4,201,219 4,201,219 4,242,239 4,242,239 87,133 210 Paramedic/EMS 787,219 8,575,845 8,575,845 8,561,588 - 8,561,588 801,476 216 Cannabis 325,973 500,000 500,000 500,000 500,000 325,973 217 State Lands Fund 298,182 37,576 37,576 - - 335,758 222 Recreation Revolving 276,445 1,887,462 2,000,000 3,887,462 4,028,762 4,028,762 135,145 223 Household Haz. Waste Fund 386,675 184,443 184,443 176,919 176,919 394,199 228 Hazardous Materials Fund 55,251 - - 55,251 234 Pt. San Pedro A.D. Maintenance Portion 129,302 158,013 158,013 185,200 185,200 102,115 235 Baypoint Lagoons L & L Assessment District 209,692 24,533 24,533 229,378 229,378 4,847 236 Loch Lomond CFD #10 781,403 25,598 25,598 19,148 19,148 787,853 237 Loch Lomond Marina CFD #2 505,900 80,851 80,851 131,210 131,210 455,541 240 Parkland Dedication 332,985 671 671 - - 333,656 241 Measure A Open Space 500,203 472,679 472,679 723,350 723,350 249,532 242 Measure C Wildfire Prevention 88,882 1,826,452 1,826,452 1,817,118 1,817,118 98,216 495 Low and moderate Income Housing Fund 979,696 2,454 2,454 95,000 95,000 887,150 LIBRARY AND FALKIRK:214 Library Revolving 135,438 8,293 8,293 40,000 40,000 103,731 215 Library Special Assessment Fund 1,107,221 1,101,828 1,101,828 1,224,045 1,224,045 985,004 Library Fund 1,242,659 1,110,120 - 1,110,120 1,264,045 - 1,264,045 1,088,734 PUBLIC SAFETY:200Abandoned Vehicle 26,315 75,000 85,000 160,000 171,465 171,465 14,850 202Asset Seizure 1,637 - - - 1,637 204 Crime Prevention 4,473 - - - 4,473 230 Youth Services - Police 88,474 15,000 15,000 25,005 25,005 78,469 Public Safety Fund 120,900 90,000 85,000 175,000 196,470 - 196,470 99,430 TRAFFIC AND HOUSING:243Affordable Housing in lieu 4,389,137 869,881 869,881 - 5,259,017 245 Housing & Parking In-lieu 362,413 708 708 - 363,121 246 East S.R. Traffic Mitigation 1,797,944 2,975 2,975 308,837 308,837 1,492,082 Traffic & Housing Mitigation Funds 6,549,494 873,564 - 873,564 308,837 - 308,837 7,114,221 GRANT:201A.D.A.. Access Projects - - - - - - 260 Pickleweed Childcare Grant 220,934 386,352 386,352 434,398 434,398 172,888 281 Public Safety Grants 489,790 400,000 400,000 721,200 721,200 168,590 283 Grant-Other143,267 99,250 99,250 120,005 120,005 122,512 Grant Funds 853,990 885,602 - 885,602 1,275,603 - 1,275,603 463,990 SPECIAL REVENUE & GRANT FUND TOTAL 18,740,607 27,300,258 2,085,000 29,385,258 29,101,654 635,000 29,736,654 18,389,211 CONSOLIDATED FUNDS W:\Accounting and Budgeting\Budget\20‐21\Fund Sums FY20‐21\Fund Sums FY21_used for budget
EXHIBIT ICITY OF SAN RAFAEL746,929.00 +$400k fund 713 397,461 Fund 490346,929.00 (400,000.00) 298,012.00 Estimate from FY21Total Total FY 2021-22 PROJECTED BUDGETJune 30, 2021 Operating OperatingJune 30, 2022FUND FUNDProjectedand Capital Transfers Total and Capital Transfers to TotalProjected#NAMEBalanceRevenue In Resources Budget Other Funds AppropriationsBalanceCONSOLIDATED FUNDS ASSESSMENT DISTRICTS:302 Financing Authority 1997 Bonds 151,695 - - - - 151,695 304 Peacock Gap Assessment District 2,875 - - - - 2,875 306 Mariposa Assessment District 16,573 - - - - 16,573 Var.Assessment District Projects 302,890 - - 302,890 ASSESSMENT DISTRICT TOTAL 474,033 - - - - - - 474,033 CAPITAL PROJECT FUNDS:401 Capital Improvement 1,768,229 9,850 9,850 1,393,886 1,393,886 384,193 405 Open Space Acquisition 121,120 257 257 - - 121,377 406 Bedroom Tax 103,107 220 220 - - 103,327 407 Parks Capital Projects 17,224 - - 17,224 420 Measure E - Public Safety Facilities 3,578,097 17,695 - 17,695 103,931 103,931 3,491,861 CAPITAL PROJECT FUND TOTAL 5,587,777 28,023 - 28,023 1,497,817 - 1,497,817 4,117,983 ENTERPRISE FUND:501 Parking Services-Cash Beg.Bal 1,937,545 3,341,546 3,341,546 4,363,215 521,209 4,884,424 394,667 ENTERPRISE FUND TOTAL 1,937,545 3,341,546 - 3,341,546 4,363,215 521,209 4,884,424 394,667 INTERNAL SERVICE FUNDS:227 Sewer Maintenance - 3,128,628 3,128,628 3,128,624 3,128,624 4 600 Vehicle Replacement-Cash Beg.Bal 2,026,019 1,205,434 1,205,434 1,200,000 1,200,000 2,031,453 601 P.C. Replacement 1,129,269 2,002,102 2,002,102 2,146,105 2,146,105 985,266 602 Fire Equipment Replacement 977,707 133,047 133,047 131,000 131,000 979,754 603 Building Improvement-Cash Beg.Bal 873,812 1,001,652 1,001,652 540,098 540,098 1,335,366 604 Employee Benefits 293,517 703,492 703,492 991,759 991,759 5,250 605 Liability Insurance 1,024,412 1,775,494 1,775,494 2,528,985 2,528,985 270,921 606 Workers Compensation Insurance 928,602 2,402,621 2,402,621 2,017,859 2,017,859 1,313,364 607 Dental Insurance 254,276 499,136 499,136 495,000 495,000 258,412 608 Radio Replacement 4,366 713,526 713,526 748,499 748,499 (30,607) 609 Telephone/Internet 161,390 484,163 484,163 487,735 487,735 157,818 611 Employee Retirement 2,695,390 6,708 6,708 4,000 683,813 687,813 2,014,285 612 Retiree Health Benefit OPEB-Cash Beg.bal 359,213 4,259,187 4,259,187 3,960,000 3,960,000 658,400 613 Police Equipment Replacement Fund 251,286 37,033 37,033 130,000 130,000 158,319 INTERNAL SERVICE FUND TOTAL 10,979,259 18,352,224 - 18,352,224 18,509,664 683,813 19,193,477 10,138,006 TRUST AND AGENCY FUNDS:712 Library Fiduciary2,347,402 5,051 5,051 - - 2,352,453 TRUST & AGENCY FUND TOTAL 2,347,402 5,051 - 5,051 - - - 2,352,453 - COMBINED FUNDS TOTAL 45,570,034 138,024,384 3,840,022 141,864,406 141,963,670 3,840,022 145,803,692 41,630,749 LESS: INTERFUND TRANSFER (3,840,022) (3,840,022) (3,840,022) (3,840,022) LESS:INTERNAL SERVICE CHARGES(14,174,272) (14,174,272) (14,174,272) (14,174,272) NET TOTALS FY 2020-2021 45,570,034 123,850,112 - 123,850,113 127,789,398 - 127,789,398 41,630,749 W:\Accounting and Budgeting\Budget\20‐21\Fund Sums FY20‐21\Fund Sums FY21_used for budget
GENERAL FUND
PROPOSED BUDGET FY 2021-2022
EXHIBIT II
GENERAL FUND
REVENUES & OTHER OPERATIONAL SOURCES
Taxes
Property Tax and related 22,606,360$
Sales Tax 22,494,401
Sales Tax -Measure E 12,826,295
Sales Tax -Measure R 4,274,765
Franchise Tax 4,133,700
Business Tax 2,640,000
Transient Occupancy Tax 2,400,000
Other Agencies
CSA #19 Fire Service 2,328,422
VLF Backfill 6,350,000
Other Agencies (Prop 172, Owner Prop Tax, State Mandate, Other agencies) 1,296,725
Other Revenues
Permits & Licenses (building, electrical, encroachment, use, alarm)2,902,778
Fine & Forfeitures (traffic, vehicle, etc.)182,100
Interest & Rents (investment earnings, rents, etc.)273,800
Charges for Services (includes dev't fees and plan review)2,372,983
Other Revenue (damage reimbursements, misc income)778,750
Sub-total: Revenues 87,861,080$
TRANSFERS IN
Assessment District reimbursements
from Gas Tax 550,000
from Parking Services Fund - Admin. cost 521,209
from Measure E for 2018 Lease Revenue Bond
from Employee Retirement Fund - POB debt payment 683,813
Sub-total: Transfers In 1,755,022$
TOTAL SOURCES 89,616,102$
EXPENDITURES AND OTHER OPERATIONAL USES
Expenditures by Department
Finance 7,098,718
Non-Departmental 3,788,776
City Manager/City Council 2,850,879
City Clerk 590,334
Digital Services 1,465,798
Mgt Serv: Adm,HR 512,363
City Attorney 1,175,877
Community Development 5,472,187
Police 25,675,569
Fire 21,385,526
Public Works 13,767,228
Library 3,084,017
Economic Development 695,462
Sub-total: Expenditures 87,562,734$
OPERATIONAL TRANSFERS OUT
to Recreation Fund - Operating support 2,000,000
Sub-total: Transfers Out 2,000,000$
TOTAL USES 89,562,734$
NET OPERATING RESULTS 53,368$
CITY OF SAN RAFAEL
Authorized Positions EXHIBIT III
Mid-Year
Final Final Final Final Final Final Final Final Final Final Adopted Changes Final Proposed
Departments 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2020-2021 2020-2021 2021-2022
Regular
Community Development 20.75 18.25 18.25 17.80 17.80 19.80 20.00 21.00 21.00 21.75 21.75 - 21.75 21.75
Community Services 61.16 59.82 59.02 60.25 60.82 60.84 60.94 60.94 60.94 56.41 56.41 - 56.41 56.41
City Attorney 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 - 3.50 3.50
City Clerk 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 - 2.00 2.00
City Manager/Council 7.70 8.50 8.50 9.56 9.56 11.56 13.56 13.56 13.56 12.56 12.56 - 12.56 12.56
Economic Development (former RDA) 5.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 - 2.00 2.00
Finance 10.00 10.00 10.00 10.00 11.72 12.72 12.72 11.72 11.72 11.72 11.72 - 11.72 11.72
Fire 76.00 75.00 76.00 79.00 81.75 81.75 81.75 82.35 82.35 82.00 82.00 5.00 87.00 87.00
Library 26.68 21.74 21.74 23.41 23.41 23.41 23.41 23.41 23.41 21.66 21.66 - 21.66 21.66
Management Services 31.15 28.23 26.23 26.33 27.33 27.83 27.33 29.33 29.33 30.33 29.63 - 29.63 29.63
Police 90.00 87.00 87.00 89.00 90.00 92.00 92.80 92.00 92.00 93.30 94.50 - 94.50 94.50
Public Works 62.80 62.00 60.00 61.00 62.00 62.00 63.00 66.67 66.67 68.00 68.00 1.00 69.00 69.00
Sub - Total Regular Positions 396.74 379.04 375.24 384.85 392.89 400.41 404.01 409.48 409.48 405.23 405.73 6.00 411.73 411.73
Change from previous year 7.97 (3.80) 9.61 8.04 7.52 3.60 5.47 - (2.50) 0.50 5.50 6.00 -
Authorized, unbudgeted - extended absence/no cost 1.00 2.00 2.00 1.00 1.00 - - - - -
Total Authorized Positions 399.72 379.04 375.24 384.85 393.89 402.41 406.01 410.48 410.48 405.23 405.73 6.00 411.73 411.73
General Notes:
The above-authorized positions are presented as full-time equivalent employees (FTE's) based on various workweek hours as
negotiated in employee agreements. The totals by department reflect a combination of full-time or permanent part-time, or
fixed term positions that are entitled to all or pro-rated benefits in accordance with the negotiated agreements for employees or
individuals who are under contract. The totals reflected above, or in the detail department program sections, do not include
temporary or seasonal employees that are utilized for short-term or specific reasons during the year.
W:\Accounting and Budgeting\Budget\21-22\Personnel\1-Authorized Position FY22\Budgeted Positions FY21-22
Attachment 3
Capital Improvement Program: FY 2021-
22 through 2023-24
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Attachment-3-Draft-FY-2021-22-CIP.pdf
EXHIBIT A
GANN LIMITATION CALCULATION
Fiscal Year 2021-22
(A)(B)
Fiscal Cost of Living Change in Population Factor Prior Year Current Year Subject to Variance
Year Change in Limitation Limitation Gann Limit Gann 'gap'
Assessment
California Roll for Change in Change in
Per Capita Nonresidential Population for Population for
Personal Income Or Construction San Rafael Or Marin County (Highest B X
(Source : State) (Source : County)(Source: State)(Source: State)Highest A)
94/95 24,635,128$
95/96 4.72 0.60 1.22 1.060000 x 24,635,128$ =26,113,235$
96/97 4.67 5.50 1.37 1.43 1.070000 x 26,113,235$ =27,941,557$
97/98 4.67 5.40 2.17 1.64 1.080000 x 27,941,557$ =30,176,882$
98/99 4.15 6.80 1.42 1.56 1.080000 x 30,176,882$ =32,591,032$
99/00 4.53 6.26 1.47 1.62 1.079800 x 32,591,032$ =35,192,257$
00/01 4.91 9.27 1.50 1.82 1.112600 X 35,192,257$ =39,154,905$
01/02 7.82 6.67 0.53 0.72 1.086000 X 39,154,905$ =42,522,227$
02/03 -1.27 5.15 0.69 0.81 1.060000 X 42,522,227$ =45,073,561$
03/04 2.31 2.43 1.45 0.77 1.039152 X 45,073,561$ =46,838,297$
04/05 3.28 2.06 -0.16 2.53 1.058900 X 46,838,297$ =49,597,072$ 39,274,542$ 10,322,530$
05/06 5.26 1.59 0.07 0.33 1.056100 X 49,597,072$ =52,379,468$ 43,215,534$ 9,163,934$
06/07 3.96 0.57 0.49 0.74 1.047300 X 52,379,468$ =54,857,017$ 47,167,477$ 7,689,540$
07/08 a 4.42 2.09 0.97 0.97 1.054300 X 54,857,017$ =58,867,753$ 53,279,474$ 5,588,279$
08/09 4.29 2.63 0.68 0.93 1.052600 X 58,867,753$ =61,964,197$ 54,394,753$ 7,569,444$
09/10 0.62 6.65 0.57 0.81 1.075100 X 61,964,197$ =66,617,708$ 51,368,817$ 15,248,891$
10/11 -2.54 39.62 0.79 0.93 1.409200 X 66,617,708$ =93,877,675$ 48,469,424$ 45,408,251$
11/12 b 2.51 -34.13 0.81 0.90 1.034300 X 93,877,675$ =100,987,679$ 50,180,413$ 50,807,266$
12/13 3.77 0.12 0.92 1.05 1.048600 X 100,987,679$ =105,895,680$ 51,825,702$ 54,069,978$
13/14 c 5.12 2.09 0.34 0.42 1.055600 X 105,895,680$ =110,641,157$ 54,313,859$ 56,327,297$
14/15 -0.23 0.85 0.39 0.42 1.012700 X 110,641,157$ =112,046,300$ 56,717,201$ 55,329,098$
15/16 d 3.82 7.99 0.60 0.73 1.087800 X 112,046,300$ =117,140,576$ 65,177,999$ 51,962,576$
16/17 5.37 0.68 0.12 0.33 1.057200 X 117,140,576$ =123,841,017$ 71,967,785$ 51,873,231$
17/18 3.69 0.11 0.25 0.18 1.039500 X 123,841,017$ =128,732,737$ 74,893,075$ 53,839,661$
18/19 3.67 0.06 -0.02 0.17 1.038500 X 128,732,737$ =133,688,947$ 77,599,200$ 56,089,748$
19/20 3.85 0.26 0.04 -0.01 1.038900 X 133,688,947$ =138,889,447$ 82,867,376$ 56,022,071$
20/21 e 3.73 1.91 -0.66 -0.60 1.031100 X 138,889,447$ =143,208,909$ 73,554,079$ 69,654,830$
21/22 5.73 1.00 -0.62 -0.43 1.052800 X 143,208,909$ =150,770,339$ 82,522,271$ 68,248,068$
= Value selected for Factor calculation
(a) Includes increase for Paramedic Tax Revenue Generated by Measure P
(b) Includes increase for Paramedic Tax Revenue Generated by Measure I
https://www.dof.ca.gov/Forecasting/Demographics/Estimates/documents/PriceandPopulatio
Note:
(c) Reduce the limit by $1,142,323 to reflect the amount associated with
Measure P at the time the limit was increased in fiscal year 2011-2012 for
Measure I
(d) 2015-16 - The Limit is reduced by $4,743,389 for the Paramedic Tax -
Measure I for the increase of $3,890,000 added in 2011 - 2012 that
"Sunset" or Expired after 4 years at the end of 2015.
County assessment roll factor for FY10/11 is an outlier. Reclaculate using State per capita income
factor for FY10/11 to ensure that the city falls below the Gann limit under each scenario for
conservatism.
(e) 2020-21 - Appropriations subject to the limit declined due to both the
reduction in budgeted revenues as a result of the COVID-19 pandemic as
well as the exclusion of debt service on the 2018 bonds beginning in FY21.
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
GANN Limit Calculations
Current Year Limitation Subject to Gann Limit
W:\Accounting and Budgeting\Budget\21-22\Gann Limit FY21-22\Gann Limit Calculation 21-22-Exh A - 5/24/2021
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EXHIBIT B
City of San Rafael
Appropriation Limit Analysis
FY 2021-22
2021-2022
2020-2021 Less Less Appropriations
Adopted Exempt Non-Tax Subject to
Total Appropriations Fund # Budget Expenditures Revenues Gann Limit
General Fund 001 84,463,804$ 879,154$ 13,412,359$ 70,172,291$
Abandoned Vehicle Abatement Fund 200 171,465 1,365 160,000 10,100
Storm Water Fund 205 1,145,725 - 834,456 311,269
Emergency Medical Services Fund 210 8,561,588 116,922 3,431,100 5,013,566
Library Fund 214 40,000 - 8,293 31,707
Library Special Assessment Fund 215 1,224,045 11,964 - 1,212,081
Measure G - Cannabis 216 500,000 963 - 499,037
General Plan Special Revenue Fund 218 928,586 2,688 1,136,203 -
Recreation Revolving Fund 222 4,028,762 53,353 1,887,462 2,087,947
Police Youth Service fund 230 25,005 5 15,000 10,000
Measure A Open Space Fund 241 723,350 - - 723,350
Measure C Wildfire Prevention Parcel Tax 242 1,817,118 49,008 - 1,768,110
Open Space Fund 405 - - - -
LongTerm Capital Outlay (Excess of $100K &
10yr Life) N/A - - - -
General Fund Debt Service - Capital Outlays N/A 5,098,930 4,416,117 - 682,813
Total Appropriations 108,728,378$ 5,531,539$ 20,884,873$ 82,522,271$
Appropriation Limit from Revised Growth Limit 150,770,339$
Available Room Under Appropriation Limit 68,248,068$
W:\Accounting and Budgeting\Budget\21-22\Gann Limit FY21-22\Gann Limit Growth 21-22-Exh B
