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Home My WebLink AboutFinance Committee 2025-12-02 Agenda Packet (Special) SAN RAFAEL CITY COUNCIL FINANCE SUBCOMMITTEE Tuesday, December 2, 2025 11:30 AM-12:30 PM Third Floor Conference Room San Rafael City Hall 1400 Fifth Avenue, San Rafael, CA 94901 Watch Online: Watch on Zoom Webinar: https://cityofsanrafael-org.zoom.us/j/84936179562 Listen by phone: (669) 444-9171 ID: 849 3617 9562 One Tap Mobile: +16694449171,,84936179562# US SPECIAL MEETING AGENDA 1. Call to Order 2. Approval of Minutes a. Approve the minutes of the November 4, 2025 meeting Recommended Action – Approve minutes as submitted. 3. Open Time for Public Expression a. The public is welcome to address the Committee at this time on matters not on the agenda that are within its jurisdiction. Comments may be no longer than two minutes and should be respectful to the community 4. Reports/Action Items a. Framework for Fiscal Sustainability - Staff will provide the Committee with an update on the City’s fiscal outlook as well as a framework and timeline for consideration of potential ballot measures for the June 2026 and/or November 2026 elections. Recommendation: Receive presentation and provide feedback to inform next steps. 5. Future Agenda Items a. Agenda planning for the upcoming meetings: i. Mid-Year Budget Update (January 2026) ii. Recreation Program Fee Study / Recommendations 6. Adjournment Any records relating to an agenda item, received by a majority or more of the board or commission less than 72 hours before the meeting, shall be available for inspection in the City Clerk’s Office, room 209, 1400 Fifth Avenue, Sign Language interpreters and assistive listening devices may be requested by calling (415) 485-3066 (voice), emailing Lindsay.lara@cityofsanrafael.org or using the California Telecommunications Relay Service by dialing “711”, at least 72 hours in advance of the meeting. Copies of documents are available in accessible formats upon request. Public transportation is available through Golden Gate Transit, Line 22 or 23. Paratransit is available by calling Whistlestop. Wheels at (415) 454-0964. To allow individuals with environmental illness or multiple chemical sensitivity to attend the meeting/hearing, individuals are requested to refrain from wearing scented products. SAN RAFAEL CITY COUNCIL FINANCE SUBCOMMITTEE MEETING Tuesday, November 4, 2025 | 9:30 AM – 10:30 AM THIRD FLOOR CONFERENCE ROOM SAN RAFAEL CITY HALL 1400 FIFTH AVENUE, SAN RAFAEL, CALIFORNIA MEETING MINUTES 1. Call to Order Time called to order: 9:31 am Present: Mayor Kate Collins, Councilmember Eli Hill Staff Present: Paul Navazio (staff liaison), John Stefanski, Angela Robinson-Pinon Presenter: Whitney Crocket, Audit Partner, Maze & Associates 2. Open Time for Public Expression The public is welcome to address the Subcommittee at this time on matters not on the agenda that are within its jurisdiction. Comments may be no longer than two minutes and should be respectful to the community. • None. 3. Approval of Minutes Approval of Minutes of the Regular Finance Subcommittee meeting of September 2, 2025 Action – Approved 2-0 (Mayor Kate, Councilmember Hill) 4. Reports/Action Items a. FY2024-25 Annual Comprehensive Financial Report (ACFR) and Report(s) from the Independent Auditor The Subcommittee received a presentation from the City’s independent auditor (Whitney Crocket, Audit Partner, Maze & Associates) regarding the audit of the City’s Financial Statements for the fiscal year ended June 30, 2025. This item is scheduled for presentation to the City Council at the meeting of December 1, 2025. Highlights included: • Scope of audit – to include Annual comprehensive Financial Report; Child Development Program and Gann Limit (Agreed Upon Procedures). • The auditor is preparing to issue an unmodified, “clean” opinion to the effect that the financial statements are fairly stated in all material respects…in conformity with applicable accounting standards (GAAP). • The Memorandum of Internal Control addresses any weaknesses identified via sampling of financial transactions; no material weaknesses or significant deficiencies were identified. One “other matter” was identified related to requirement (per City Purchasing Policy/procedures) for staff to retain documentation of evidence of informal bidding. o Management’s response addressed this concern in conjunction with update of Purchasing Policy and procedures, effective 7/1/25, as well as internal controls put in place with roll-out of new financial system (ERP). o Mayor Kate raised the question of whether the dollar threshold for informal bids is t0o low (currently set at transaction greater than $5,000). Staff will evaluate. o Councilmember Hill inquired as to the procedure used by the auditor to sample transactions for testing. • The auditor also shared summary of other Required Communications: o Changes in accounting standards related to GASB 101 and 102. o No unusual transactions o No disagreements with management o No material adjustments or uncorrected misstatements to report o GANN Limit Agreed Upon Procedures Report – one exception noted (for clarification). • Results of Childcare Program Audit o Unmodified/clean opinion o No current year findings in compliance review At the conclusion of the presentation and follow-up discussion, Councilmember Hill noted the importance of the audit as a reflection of the City’s strong commitment and track record of sound fiscal management. b. FY2025-26 First Quarter Budget Update The Subcommittee received a preview of Fy2025-26 First Quarter Budget Update covering budget-to-actual revenue and expenditure results for the first quarter of the fiscal year (through September 30, 2025). This informational item was scheduled for the City Council meeting of November 17, 2025 (subsequently moved to meeting of December 1, 2025). Highlights included: • Revenues and expenditures through the first quarter generally tracking with budget estimates. Too early to update budget projections. • General Fund revenues through the first quarter, reported at 7.6% of the adjusted budget, reflect the timing of receipt of major revenue sources (ex. Property Taxes, Sales Tax) • General Fund expenditures tracking with budget, including personnel costs; primarily as a result of significantly lower staffing vacancy rate as well as including a salary savings factor in the FY2025-26 budget. • The All Funds amended FY2025-26 budget of 223.1 million reflets budget amendments totaling $30.82 million processed following the adoption of the original budget. These adjustments include: o Carry-over of $15.94 million in encumbered FY2024-25 appropriations o Carryover of $14.26 million in unencumbered FY2024-25 appropriations, approved by the City Council via Resolution 15456 (9/2/25) o Supplemental budget appropriations totaling $614,570 approved by the City Council through specific actions taken since 7/1/25 • Staff also noted that selected adjustments were made to the FY2025-26 budget to reclassify appropriations (no net impact) necessitated by the implementation of a new chart of accounts and changes to organizational structure effective with the implementation of the City’s new Tyler/ERP financial system. 5. Future Agenda Planning • The next meeting of the Finance Subcommittee is scheduled for December 2, 2025. o Staff intends to agendize a presentation of updated budget forecast and fiscal outlook as well as framework to guide consideration of future ballot measures, noting the scheduled expiration of the Library Parcel Tax in June of 2026. 6. Adjournment • The meeting was adjourned at 10:16 am.