HomeMy WebLinkAboutFin Year-End Audited Financial Statements and Related Audit Reports____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: December 1, 2025
Disposition: Accepted Reports
Agenda Item No: 5.b
Meeting Date: December 1, 2025
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Paul Navazio,
Finance Director
City Manager Approval: __________
TOPIC: YEAR-END AUDITED FINANCIAL STATEMENTS AND RELATED AUDIT REPORTS
SUBJECT: FISCAL YEAR 2024-25 ANNUAL COMPREHENSIVE FINANCIAL REPORT;
MEMORANDUM ON INTERNAL CONTROL; REPORT OF REQUIRED
COMMUNICATIONS; CHILD DEVELOPMENT PROGRAM FINANCIAL REPORT: AND
GANN APPROPRIATIONS LIMIT
RECOMMENDATION:
Staff recommends that the City Council accept the Fiscal Year (FY) 2024-25 Annual Comprehensive
Financial Report, Memorandum on Internal Control, Report of Required Communications, Child
Development Program Financial Report, and GANN Appropriations Limit Report.
BACKGROUND:
As required by local code, State law, bond covenants, and best practices, the City of San Rafael
completes an annual independent audit of its financial activities. The auditing firm of Maze and
Associates, Accountancy Corporation, conducted the audit for fiscal year 2024-25. Their work was
completed in accordance with generally accepted auditing standards, issued by the Comptroller General
of the United States, and the provisions of Office of Management and Budget Circular A-133, Audits of
State and Local Government and Non-Profit Organizations.
The auditors also prepared a Memorandum on Internal Control to assess the City’s controls over its
financial activities. In addition, the requirements of Section 1.5 of Article XIIIB of the California
Constitution are met with an agreed-upon procedure report applied to the Gann Appropriation Limit
calculated for the year ending June 30, 2026. These reports are attached to this staff report.
As part of the fiscal year-end activities, the Finance and Library & Recreation departments worked with
the auditors to complete the annual audit of the City’s Childcare Program, as required by the State of
California.
For the year ending June 30, 2025, the City did not receive funds under the purview of the Transportation
Development Act. Therefore, no separate audit report was completed to satisfy the requirements of the
State of California pertaining to these funds.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ANALYSIS:
Fiscal Year 2024-25 Annual Financial Report – City-wide Financial Results
The independent auditor has issued an unqualified opinion relative to the City’s financial statements for
the fiscal year ended June 30, 2025. This opinion states that the financial statements present fairly, in all
material respects, the financial position of the City. The audited results of the City’s financial activities
for the fiscal year ended June 30, 2025, are presented in the attached Annual Comprehensive Financial
Report (ACFR). (Attachment 1)
The report includes Government-wide financial statements with governmental activities and business-
type activities presented separately. At the end of the fiscal year, the net position of the City's
governmental activities, inclusive of all governmental funds, all assets of the City (including
infrastructure), and all liabilities (including long-term debt), was $327.4 million, an increase of $16.5
million from the prior year's balance.
Current and other governmental assets increased by $2.5 million, mainly due to the overall results of
revenues outpacing expenses for the year, increasing cash and investment balances. The $4.5 million
increase in capital assets reflects project-to-date activity for major infrastructure improvements exceeding
depreciation for the year. The increase of $5.1 million in deferred outflows is primarily a result of the
impact of the amortization of pension and OPEB-related outflows recognized into pension expense in the
current year. Noncurrent governmental liabilities decreased by $8.8 million mainly because of the
decrease in pension and OPEB liabilities of $5.1 million, as well as the paydown of long-term debt.
Deferred inflows increased by $842,000, mainly due to the amortization of pension and OPEB inflows in
the current year.
The Management’s Discussion and Analysis (MD&A) section begins on page five of the attached ACFR.
Increase Increase
2025 2024 (Decrease)2025 2024 (Decrease)
Current and other assets $148,500 $146,001 $2,499 $1,525 $1,518 $7
Capital assets 324,231 319,756 4,475 14,483 14,743 (260)
Total assets 472,731 465,757 6,974 16,008 16,261 (253)
Deferred outflows (Notes 9 and 11)71,621 66,549 5,072 1,686 1,780 (94)
Current and other liabilities 21,467 18,004 3,463 587 528 59
Noncurrent liabilities 171,741 180,544 (8,803) 5,437 6,239 (802)
Total liabilities 193,208 198,548 (5,340) 6,024 6,767 (743)
Deferred inflows (Notes 4H, 9 and 11)23,765 22,923 842 541 571 (30)
Net Position:
Net investment in capital assets 276,991 268,520 8,471 11,424 11,354 70
Restricted 49,053 48,596 457 0
Unrestricted 1,335 (6,281) 7,616 (295) (651) 356
Total net position $327,379 $310,835 $16,544 $11,129 $10,703 $426
Governmental Activities Business-Type Activities
Summary of Net Position
(in thousands)
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
The MD&A provides key highlights and a summary view of financial activities for the year.
Financial Results: General Fund
General fund expenditures and transfers-out exceeded revenues and transfers-in by $2.5 million. Actual
revenues, at $105.8 million, exceeded original budgeted revenues by $3.8 million. The increase is largely
attributed to investment gains as interest rates increased and the City recouped much of its $2 million
unrealized loss incurred in fiscal year 2021-22. Sales Tax and Property Tax revenues also outperformed
the budget by $1.0 million. Expenditures of $99.9 million were $3.8 million less than amended budgeted
expenditures of $103.8 million, mainly a result of unspent appropriations related to non-personnel
expenditures, of which $2.1 million will be re-appropriated for use in the 2025-26 fiscal year. Personnel
expenditures ended the year in line with the budget, as the City saw a decrease in the level of staff
vacancy rates that had been experienced in previous years.
The fund balance of the General Fund as of June 30, 2025, was $33.9 million (a decrease of $2.5 million from
the prior year balance): $71,000 is non-spendable, $10.1 million is committed, $18.3 million is assigned, and
$5.4 million is unassigned. The committed and unassigned portions of the balance include $10.1 million and
$5.1 million for emergency and cash flow reserves, respectively, which meet the minimum target reserve
levels at 15% of general fund operating expenditures established by City Council policy. An additional
$1.0 million of the assigned fund balance represents the City’s capital (infrastructure) reserve.
Memorandum on Internal Control
As a component of the annual financial audit, the auditors are required to communicate to the City Council
matters related to internal controls that may impact the accuracy of the City’s financial statements. The
auditor’s Memorandum on Internal Control identifies findings that are deemed to be either material
weaknesses, significant deficiencies, or “other matters.” (Attachment 2)
The Memorandum on Internal Controls issued with the audit of the financial statements for the fiscal year
ended June 30, 2025, does not identify any material weaknesses or significant deficiencies. However,
the memorandum notes one “Other Matters” that were identified during the audit, and is summarized as
follows:
•Finding 2025-1 – Purchasing Policy Compliance – Informal Bidding Documentation.
This finding resulted in a recommendation from the independent auditor that the City establish or
reinforce procedures to ensure that all departments consistently retain documentation supporting
Adopted Budget Revised Budget Actual Variance
Revenues $101,929 $101,929 $105,773 $3,844
Transfers in 2,508 2,508 1,959 (549)
Total resources 104,438 104,438 107,732 3,295
Expenditures 103,185 $103,758 99,974 (3,784)
Operating transfers out 10,259 10,259 10,259 -
Capital transfers out -
Total uses 113,443 114,017 110,233 (3,784)
Net Results ($9,006)($9,579)($2,500) $7,078
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2025 (in thousands)
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
informal bidding processes in accordance with the Purchasing Policy.
Management’s response (included in the Memorandum of Internal Control):
Management acknowledges the importance of reinforcing procedures to ensure compliance with the
City’s Purchasing Policy, including Informal Bidding requirements. To this end, in conjunction with an
update to the City’s Purchasing Policy, approved by the City Council on May 19, 2025, management has
also updated the Purchasing Procedures guidelines provided to City staff. These procedures are being
further updated to highlight the requirement for the purchasing agent to retain a record of informal bids
received, pursuant to Section 2.55.260 of the Purchasing Policy.
In addition, with the City’s transition to a new Enterprise Resource Planning (ERP) Financial system,
backup documentation related to all purchases and contract awards is now uploaded and verified at the
time of setting up a Purchase Order or Contract. Note, given that Purchase Orders are only required for
purchases greater than $10,000, staff will be reviewing the current threshold requirement ($5,000)
related to informal bidding procedures.
Required Communications
Professional standards require that certain information regarding significant audit findings related to the
audit be communicated to those charged with governance. These communications include minor
changes to accounting policies, new accounting pronouncements, and a discussion of significant
accounting estimates, among other items. The auditor noted no adverse communications. (Attachment
3)
Child Development Program (Childcare) Financial Report
The Independent Auditor has also completed its audit of the City’s Child Development Program. For the
fiscal year ended June 30, 2025, the Child Development Program recorded revenues of $4.19 million,
supporting expenditures of $3.83 million. The program ended the year with a fund balance of $1.59
million. The audit report provides an unqualified opinion and includes no findings or recommendations.
(Attachment 4)
Gann Appropriations Limit
The Agreed-Upon Procedures report for the Gann Appropriations Limit required three procedures to be
performed, including testing the accuracy of the calculations and comparison of information presented.
No exceptions were noted in these procedures for compliance with the Proposition 111 fiscal year 2025-
26 Appropriations Limit calculation. (Attachment 5)
FISCAL IMPACT:
No fiscal impact occurs from the City Council’s acceptance of these reports. The fiscal year 2024-25
Annual Comprehensive Financial Report and related reports are presented as the actual results of the
City and related entities’ financial activities for the year.
RECOMMENDATION:
Staff recommends that the City Council accept the reports as presented.
ATTACHMENTS:
1.FY 2024-25 Comprehensive Annual Financial Report
2.FY 2024-25 Memorandum of Internal Controls
3.FY 2024-25 Required Communications
4.FY 2024-25 Child Development Program Financial Report
5.FY 2024-25 Draft Gann Appropriations Limit
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING JUNE 30, 2025
Aerial View, San Rafael, California
SAN RAFAEL
THE CITY WITH A MISSION
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2025
City of San Rafael, California
1400 Fifth Avenue
San Rafael, California 94901
Prepared by the Finance Department of the City of San Rafael
Bay View Trail, San Rafael
INTRODUCTORY SECTION
CITY OF SAN RAFAEL, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2025
Table of Contents
INTRODUCTORY SECTION
TABLE OF CONTENTS
Letter of Transmittal .................................................................................................................................... v
Mission Statement and Vision Statement ................................................................................................... xi
City Council and Staff ............................................................................................................................... xii
Organizational Chart ................................................................................................................................. xiii
Location Map ............................................................................................................................................ xiv
Certificate of Achievement for Excellence in Financial Reporting ........................................................... xv
FINANCIAL SECTION
Independent Auditor's Report .................................................................................................................. 1
Management’s Discussion and Analysis .................................................................................................. 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ............................................................................................................. 23
Statement of Activities .................................................................................................................. 24
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet ............................................................................................................................ 28
Balance Sheet – Reconciliation of Governmental Fund Balances to
Net Position of Governmental Activities .............................................................................. 29
Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 30
Reconciliation of the Net Change in Fund Balances – Total Governmental
Funds with the Statement of Activities ................................................................................. 31
Proprietary Funds:
Statement of Net Position .......................................................................................................... 34
Statement of Revenues, Expenses, and Changes in Fund Net Position .................................... 35
Statement of Cash Flows ........................................................................................................... 36
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CITY OF SAN RAFAEL, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2025
Table of Contents
FINANCIAL SECTION (Continued)
Fiduciary Funds:
Statement of Fiduciary Net Position ......................................................................................... 38
Statement of Changes in Fiduciary Net Position ....................................................................... 39
Notes to Basic Financial Statements .................................................................................................. 41
Required Supplementary Information:
Schedule of the City’s Proportionate Share of the Net Pension Liability ..................................... 97
Schedule of Contributions – Defined Benefit Pension Plan ......................................................... 98
Schedule of Changes in Net OPEB Liability and Related Ratios ............................................... 108
Schedule of Contributions – OPEB ............................................................................................ 110
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual –
Budgetary Basis
General Fund ........................................................................................................................... 120
Traffic and Housing Mitigation Special Revenue Fund .......................................................... 121
Gas Tax Special Revenue Fund ............................................................................................... 122
Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual –
Budgetary Basis
Essential Facilities Capital Projects Fund ................................................................................ 124
Non-Major Governmental Funds:
Combining Balance Sheets ......................................................................................................... 128
Combining Statements of Revenues, Expenditures, and Changes
in Fund Balance ................................................................................................................... 132
Budgeted Non-Major Governmental Funds:
Combining Schedules of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ...................................................................... 136
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CITY OF SAN RAFAEL, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2025
Table of Contents
FINANCIAL SECTION (Continued)
Internal Service Funds:
Combining Statements of Net Position ....................................................................................... 146
Combining Statements of Revenues, Expenses and Changes in Fund Net Position ................... 148
Combining Statements of Cash Flows ........................................................................................ 150
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ....................................................................... 156
Changes in Net Position – Last Ten Fiscal Years ............................................................................. 158
Fund Balances of Governmental Funds – Last Ten Fiscal Years ..................................................... 162
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .................................... 164
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ...................... 166
Property Tax Rates – All Overlapping Governments – Last Ten Fiscal Years ................................ 167
Property Tax Rates – Direct & Overlapping Governments –
Last Ten Fiscal Years (Rate Per $100 of Assessed Value) .......................................................... 168
Principal Property Taxpayers – Current Year and Nine Years Ago ................................................. 169
Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................... 170
Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................... 171
Computation of Direct and Overlapping Debt .................................................................................. 172
Computation of Legal Bonded Debt Margin .................................................................................... 173
Revenue Bond Coverage Parking Facility – Last Ten Fiscal Years ................................................. 174
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CITY OF SAN RAFAEL, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended June 30, 2025
Table of Contents
STATISTICAL SECTION (Continued)
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Calendar Years .................................................. 175
Principal Employers – Last Ten Calendar Years .............................................................................. 176
Operating Information:
Full-Time Equivalent City Government Employees by Function
– Last Ten Fiscal Years ................................................................................................................. 179
Operating Indicators by Function/Program – Last Ten Fiscal Years ................................................ 180
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ............................................ 182
iv
Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati , Councilmember • Rachel Kertz, Councilmember
November 20, 2025
Honorable Mayor, Members of the City Council and Residents of San Rafael:
The Annual Comprehensive Financial Report (“Annual Report”) of the City of San Rafael
(“City”) for the year ended June 30, 2025, is hereby submitted as required by local
ordinances, state statutes and bond covenants. This financial report has been prepared in
conformance with Generally Accepted Accounting Principles (GAAP) as promulgated by
the Governmental Accounting Standards Board (GASB) and includes the report of the
independent certified public accounting firm, Maze and Associates Accountancy
Corporation, which has issued an unmodified, or “clean” opinion on the City’s financial
statements for the fiscal year ended June 30, 2025.
The independent audit of the financial statements is part of a broader, federally mandated
examination known as a “Single Audit”, which is designed to meet the needs of federal
grantor agencies. The standards governing Single Audits require the independent auditor to
report on the audited agency’s internal controls and compliance with legal requirements, with
special emphasis on such controls and requirements involving the administration of federal
funding. These reports will be available in the City’s separately issued Single Audit Report.
City Management is responsible for both the data accuracy and the completeness and fairness
of the presentation of this report. To the best of our knowledge and belief, the data presented
is accurate in all material respects and is reported in a manner that presents fairly the financial
position and results of operations of the various funds and component units of the City.
Further, the Annual Report is prepared in accordance with procedures and policies set by the
Government Finance Officers Association. The analysis of the financial condition and the
result of operations can be found in the financial section of the Management’s Discussion
and Analysis document.
The Annual Report is organized into three sections:
1.Introductory section, which is unaudited, includes this letter of transmittal, an
organizational chart, and a list of the City’s elected and appointed officials.
2.Financial section, includes the basic financial statements, related footnote disclosures,
and the combining and individual fund financial statements and schedules, as well as the
independent auditors' report.
3.Statistical section, which is unaudited, includes selected financial and demographic
information, presented on a multi-year basis. Generally, ten-year data is presented for
expenditures, revenues, assessed valuation for local properties and construction activity.
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE , SAN RAFAEL , CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati , Councilmember • Rachel Kertz, Councilmember
REPORTING ENTITY – PROFILE OF THE GOVERNMENT
The City of San Rafael is located 17 miles north of San Francisco in Marin County. Protected
by its Mediterranean like setting along the shores of the San Francisco Bay, the City enjoys
a mild climate year-round. As the County seat, San Rafael is considered the commercial,
financial, cultural and civic hub of Marin County. Abundant recreational facilities are
available in and around the City. The City’s park and recreational resources include 24 city
parks, 393 acres of developed parkland, city and county open space, and China Camp State
Park. San Rafael is close to other attractions, including the Golden Gate Bridge, Muir Woods,
Point Reyes National Seashore, Mount Tamalpais, multiple state parks, San Francisco,
Oakland and the Sonoma and Napa wine country.
In 1874, the City became the first incorporated city in the county, later becoming a charter
city in 1913 by vote of City residents. The City Council comprises five members; four are
elected by district to four-year terms while the mayor is elected at-large to a four-year term.
The City’s land area is 22 square miles, including seventeen square miles of land and 5 square
miles of water and tidelands. San Rafael's population on January 1, 2025, was 59,885.
Downtown San Rafael is the location of many community events, including Second Friday
Art Walks, Mill Valley Film Festival, West End Block Party, Summer Farmer’s Market,
Porchfest, and is one of only 14 designated Cultural Arts Districts in the State of California.
San Rafael is also the heart of the County’s cultural activities with venues such as the Marin
Center, which presents numerous ballets, concerts, speaking engagements as well as the
award-winning Marin County Fair; the Falkirk Cultural Center, providing art exhibits and
children's programming; the Christopher B. Smith Film Center, and a host of other diverse
dining and entertainment venues. The Al Boro Community Center is the hub of numerous
community, sports and cultural events in East San Rafael.
The City provides a full range of municipal services required by statute or charter, namely:
police and fire protection, construction and maintenance of streets, parks, storm drains and
other infrastructure, recreation, childcare, permits, planning, code enforcement, and a library
system serving three locations. The City performed certain infrastructure construction and
economic development activities through a separate Redevelopment Agency until its
dissolution on February 1, 2012. The City of San Rafael accepted the role of Successor
Agency to the Redevelopment Agency per Council action on January 3, 2012, and now
conducts its economic development activities with funding from its General Fund.
The City and California Municipal Finance Authority compose the San Rafael Joint Powers
Financing Authority, originally established by the City and former Redevelopment Agency
for the purpose of financing redevelopment and other projects. The San Rafael Sanitation
District is a discretely presented component unit of the City and is presented independent of
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE , SAN RAFAEL , CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati , Councilmember • Rachel Kertz, Councilmember
City financial information. For a further explanation of these entities, refer to Note 1 –
Summary of Significant Accounting Policies in the Financial Section of the Annual Report.
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 agencies exercise full powers and authorities within the scope
of the related Joint Powers Agreement including the preparation of annual budgets,
accountability for all funds, and the power to make and execute contracts. Obligations and
liabilities of the separate entities are not those of the City. For a further explanation of these
separate entities, refer to Note 12 – Jointly Governed Organizations in the Annual Report.
In 2023, the City Council adopted a set of two-year Goals, Objectives, and Strategic Priorities
covering fiscal years 2023-24 and 2024-25. The City Council recently adopted an updated
three-year Strategic Plan which includes the following priority focus areas:
Economic Development and Neighborhood Vitality
Mobility and Infrastructure
Sustainability and Resilience
Housing and Homelessness
Quality of Life: Safety and Wellbeing
Equity, Access, Belonging and Opportunity for All
High Performing Government: Innovative, Inclusive, Efficient, and Accessible
The programs, projects, and initiatives supporting these strategic goals will inform ongoing
investment of city resources in the near term.
ECONOMIC FACTORS
The City has a diversified economic base, which includes an assortment of high-tech,
healthcare, automotive, financial, service-based, entertainment and industrial businesses.
Downtown San Rafael provides a mix of restaurants, retail shops and financial institutions.
The City’s varied economic base is reflected in its property tax base, which is 75%
residential, 20% commercial, 2% industrial, and 3% unsecured and others. The top 25 sales
tax producers provide about half of overall sales tax revenues.
The overall economy continues to exceed expectations as real GDP growth is estimated
at 3.8% for the second quarter of 2025. Overall, economists are projecting a modest
growth environment with AI-related capital expenditures providing a backstop, however,
a slowing labor market is expected to put pressure on the unemployment rate while
inflation remains above the Federal Open Market Committee’s 2% target. Despite the
headwinds, overall economic activity has remained resilient and appears to be maintaining
a positive trajectory.
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE , SAN RAFAEL , CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati , Councilmember • Rachel Kertz, Councilmember
Marin County enters the final quarter of 2025 in a late-stage recovery phase, characterized
by strong consumer spending, rising home values, and a robust healthcare and tech sector.
However, challenges persist, including labor shortages, particularly in eldercare and
specialized services, and the risk of business relocation due to high operating costs.
Commercial vacancy rates remain stable, and retail activity is buoyed by tourism and local
demand.
Locally, a robust and diverse economic base continues to provide tax revenues supporting
a full range of municipal services. The City is focused on maintaining long-term fiscal
stability through prudent fiscal management, including maintaining healthy reserves to
mitigate the impacts of economic uncertainty as well developing a strategy to seek support
for renewal of expiring voter-approved tax measures.
Economic Data
The following is a sample of economic attributes that make San Rafael an exceptional
place to live and work.
Economic development organizations in San Rafael include the San Rafael Chamber
of Commerce, Hispanic Chamber of Commerce, Downtown Business Improvement
District, the Marin Small Business Development Center, and the Marin Economic
Forum.
Marin County’s top employers include Kaiser Permanente, the County of Marin, the
City of San Rafael, San Rafael School Districts, The Permanente Medical Group,
Managed Health Network, The Pasha Group, Marin County Office of Education,
Dominican University, Ghilotti Bros., Inc, and BioMarin.
Major shopping areas, as measured in available retail square footage, include the
Downtown corridor (938,000 aggregate), Northgate Mall (725,000), Montecito
Center (130,000) and Northgate One (113,900).
The top three sales tax categories during the fiscal year ended June 30, 2025, for San
Rafael were: 1. Autos and Transportation (29%), 2. State and County Pools, which
mainly reflects e-commerce activity (20%), and 3. Building and Construction (19%).
Several hotels and motels support tourism activity, led by a combined 621 rooms in
the AC Marriot, Embassy Suites, and Four Points Sheraton properties, with the latter
being in the process of a significant upgrade. Citywide, the total number of hotel
rooms is 927. Transient Occupancy Tax revenues for 2024-25 totaled $3.6 million.
Establishing and maintaining affordable residential housing for sale and lease
continues to be a challenge both in San Rafael and throughout Marin County. The
median rent for an apartment in San Rafael is $2,975. The median home value in San
Rafael is $1,325,000.
Based on tracking data, special events including the Mill Valley Film Festival boost
downtown visitation from baseline activity by approximately 112% to 153%.
Recent growth and economic vibrancy:
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE , SAN RAFAEL , CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
Kate Colin, Mayor • Eli Hill, Vice Mayor • Maribeth Bushey, Councilmember • Maika Llorens Gulati , Councilmember • Rachel Kertz, Councilmember
Development activity continues to show strong momentum, primarily driven by
large multi-family in-fill housing projects. Significant projects are currently under
construction, have recently been entitled, or have planning applications under review.
Construction is also underway on a project to develop an 8-story multifamily
residential building supporting 213 residences, with ancillary uses on the ground
floor available to residents at 930 Irwin Street. The project includes the demolition
of three existing commercial structures and the merger of three lots.
The City recently approved an application to redevelop the Northgate Mall which
consists of a comprehensive redevelopment of the existing mall into an open-air
“main street experience,” surrounded by mixed-use development of retail and up
to 1,422 residences. The Project proposes to reduce the existing commercial retail
from 775,677 sq. ft. to 225,100 square feet and construct high-density multifamily
residential buildings in the form of townhome units and apartment buildings
ranging in height from two to seven stories.
A planning application has been approved for a new state licensed residential care
facility for the elderly (RCFE) containing 155 senior independent and assisted living
units, and 28 secured memory care units at 1515 Fourth Street. The development
represents a catalytic investment into the downtown area.
A planning application is under review which proposes to redevelop a vacant 4-story
office building and construct a 17-story building with 200 residential units and 5,000
square feet of commercial space at 700 Irwin Street.
The City adopted its first ever citywide Economic Development Strategic Plan in
early 2023 and is actively engaged in actionable tasks that provide measurable
benefits and value driving enhanced economic vitality, including the launch of the
San Rafael-Go one-stop shop for resources supporting current and prospective
businesses.
The Business Improvement District sponsors several community engagement
programs including block parties and business attraction activities that draw foot
traffic to our downtown, including the popular Thursday Night Downtown
Farmers Market and Second Friday Art Walk.
FINANCIAL INFORMATION
The City's management is responsible for establishing and maintaining internal controls to
ensure that the City's assets are adequately protected from loss, theft or misuse. In addition,
management controls ensure that proper accounting data is collected so as to prepare reports
in conformance with generally accepted accounting principles.
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CITY OF SAN RAFAEL I 1400 FIFTH AVENUE , SAN RAFAEL , CALIFORNIA 94901 I CITYOFSANRAFAEL.ORG
MISSION STATEMENT
The Mission of the City of San Rafael is to enhance the quality of
life and to provide for a safe, healthy, prosperous and livable
environment in partnership with the community.
VISION STATEMENT
Our vision for San Rafael is to be a vibrant economic and cultural
center reflective of our diversity, with unique and distinct
neighborhoods in a beautiful natural environment, sustained by
active and informed residents and a responsible innovative local
government.
January 1996
xixi
SAN RAFAEL
THE CITY WITH A MISSION
City Council and Staff
As of November 20, 2025
City Council
Kate Colin, Mayor
Maribeth Bushey, Vice Mayor
Eli Hill, Councilmember
Maika Llorens Gulati, Councilmember
Rachel Kertz, Councilmember
Elected Officials
Rob Epstein, City Attorney
Lindsay Lara, City Clerk
Executive Team
Cristine Alilovich, City Manager
Angela Robinson-Piñon, Assistant City Manager
John Stefanski, Assistant City Manager
David Spiller, Chief of Police
Abraham Roman, Fire Chief
April Miller, Public Works Director
Micah Hinkle, Community & Economic Development Director
Catherine Quffa, Library & Recreation Director
Sean Mooney, Director of Digital Service & Open Government
Paul Navazio, Finance Director
Marissa Sanchez, Human Resources Director
xii
SAN RAFAEL
THE CITY WITH A MISSION
ORGANIZATIONAL CHART
City Clerk
Lindsay Lara
City Attorney
Rob Epstein
Boards &
Commissions
Volunteer and
Sustainability
Programs
Cory Bytof
Finance
Paul Navazio
Parking
Services
Jim Myhers
Police
Department
Dave Spiller
Fire Department
Abraham Roman
Library and
Recreation
Catherine Quffa
Public Works
April Miller
Digital Service and
Open Government
Sean Mooney
Community and
Economic Development
Micah Hinkle
Emergency
Management
Quinn
Gardner
Human Resources
Marissa Sanchez
Assistant City Manager
John Stefanski
Assistant City Manager
Angela Robinson Piñon
Mayor
& City Council
Kate Colin
Maribeth Bushey
Rachel Kertz
Eli Hill
Maika Llorens Gulati
City Manager
Cristine
Alilovich
Electorate
xi
ii
~SAN RAFAEL ~ THE CITY WITH A MISSION
xiv
.,
Petaluma O
cit
Greater San Francisco
Bay Area
5 0 5 10 15 Miles ~~~~iiiiiiiiiiiiiii----~!!!'!!"!!!
Sa~O Francisc;
South S
Fra nc!
Napa
-0
LOCATION MAP
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• Vacaville
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0
Concord
Haywa rd
0 •
/ fremont /
0
San Jose
0
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Rafael
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
xv
e
Downtown Farmer’s Market, San Rafael
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of San Rafael, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of San Rafael (City), California, as of and for the year ended June 30, 2025, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements
as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City as of
June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for
the year then ended in accordance with accounting principles generally accepted in the United States of
America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of the financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
1
Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill , CA 94S23
T 925.228.2800
, maze@mazeassociates.com
w mazeassociates.com
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
2
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis and other required supplementary information as listed in the Table of Contents be
presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit
of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide
any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in
the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not
include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of assurance
thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exits, we are required to describe it in our report.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 20,
2025, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the City’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the
City’s internal control over financial reporting and compliance.
Pleasant Hill, California
November 20, 2025
4
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
This analysis of the City of San Rafael’s (City) financial performance provides an overview of the City’s financial
activities for the fiscal year ended June 30, 2025. Please read it in conjunction with the basic financial statements and
the accompanying notes to those basic financial statements.
FINANCIAL HIGHLIGHTS
Government-wide:
•Net Position – The assets and deferred outflows of the City exceeded its liabilities and deferred inflows as
of June 30, 2025, by $338.5 million.
•Activities – During the fiscal year, the City’s total revenues of $150.7 million were greater than expenses of
$133.8 million for governmental and business-type activities.
•Changes in Net Position – The City’s total net position increased by $17.0 million in fiscal year 2024-2025
as compared to the net position of the previous year. Net position of governmental activities increased by
$16.5 million, while net position of the business-type activities decreased by $426 thousand.
Fund Level:
•Governmental Funds – As of the close of fiscal year 2024-2025, the City’s governmental funds reported
combined ending fund balances of $87.5 million, a decrease of $5.6 million primarily due to the utilization
of fund balance accumulated in the prior year where fund balance saw an increase of $14.7 million. Of this
total amount, $71 thousand is non-spendable, $48.9 million is restricted, $14.8 million is committed, $18.5
million is assigned, and $5.4 million is unassigned. The committed and unrestricted portions of the balance
include $10.1 million and $5.1 million representing the General Fund emergency reserve (10%) and reserve
for economic uncertainty (5%), respectively, consistent with the City’s reserve policy. An additional $1.0
million of the assigned fund balance represents the City’s capital (infrastructure) reserve.
•Governmental fund revenues totaled $144.2 million, a decrease of $0.8 million from the those of the previous
fiscal year. The decrease is mainly a result of a $1.3 million decline in charges for services as the City assessed
Traffic Mitigation fees and Construction Impact fees for large projects in the prior year. These fees can
fluctuate materially from year to year depending on development projects.
•Governmental fund expenditures increased by $11.4 million to $147.6 million, from $136.3 million in the
prior year. The increase primarily resulted from increased personnel costs stemming from new labor
agreements with all of the City’s bargaining groups as well as lower vacancy rates across the organization,
offset by a modest reduction in capital outlay expenditures.
•Enterprise fund net position increased $426 thousand to $11.1 million as the City’s parking program revenues
increased by $210 thousand, and expenditures ended the fiscal year roughly $300 thousand below prior year
results.
OVERVIEW OF FINANCIAL STATEMENTS
The Annual Comprehensive Financial Report is composed of the following:
1.Introductory section, which includes the Transmittal Letter and general information
2.Management’s Discussion and Analysis (this part)
3.Basic Financial Statements, which include the Government-wide and the Fund financial statements,
including Fiduciary Funds, along with the Notes to these financial statements
4.Combining statements for Non-Major Governmental Funds and Internal Service Funds
5.Statistical Information
5
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which
have three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to
the Basic Financial Statements.
The basic financial statements include the City (primary government) and all legally separate entities (component
units) for which the government is financially accountable. This report also contains other supplementary information
in addition to the basic financial statements for further information and analysis.
Government-wide Financial Statements
The government-wide financial statements present the financial picture of the City and provide readers with a broad
view of the City’s finances. These statements present governmental activities and business-type activities separately
and include all assets of the City (including infrastructure) as well as all liabilities (including long-term debt).
Additionally, certain interfund receivables, payables, and other interfund activity have been eliminated as prescribed
by generally accepted accounting principles.
The Statement of Net Position and the Statement of Activities and Changes in Net Position report information about
the City as a whole. These statements include all assets and liabilities of the City using the accrual basis of
accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s
revenues and expenses are taken into account, regardless of when cash is received or paid.
The Statement of Net Position presents information on all the City’s assets, deferred outflows/inflows of resources,
and liabilities, with the difference reported as net position. Over time, increases in net position may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities and Changes in Net Position presents information showing how the City’s net position
changed during the year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of timing of related cash flows.
In the Statement of Net Position and the Statement of Activities and Changes in Net Position, City activities are
separated as follows:
Governmental Activities – Most of the City’s basic services are reported in this category, including Public Safety,
Public Works and Parks, Community Development, Cultural and Recreation, and Government Administration
(finance, human resources, legal, City Clerk and City Manager operations). Property tax, sales and use taxes, user
fees, interest income, franchise fees, hotel taxes, business licenses, and property transfer taxes, plus state and federal
grants finance these activities.
Business-type Activities – The City charges fees to customers to cover the full costs of certain services it provides.
The City’s Parking Services program is the City’s sole business-type activity.
Discretely Presented Component Units – The government–wide financial statements include not only the City itself
(the primary government), but also the San Rafael Sanitation District, a legally separate entity for which the City is
financially accountable. Financial information for the San Rafael Sanitation District is reported separately from the
financial information presented for the primary government.
The government-wide financial statements can be found on pages 23 through 25 of this report.
6
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Fund Financial Statements and Major Component Unit Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for
specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All the funds of the City are divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
The fund financial statements provide detailed information about each of the City’s most significant funds, called
major funds. Each major fund is presented individually with all non-major funds summarized and presented in a
single column. Further detail on the non-major funds is presented on pages 128 through 143 of this report.
Governmental Funds – Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government’s near-term financial capacity.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for government funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand the
long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities. These reconciliations are
presented on the page immediately following each governmental fund financial statement.
The City has thirty-two governmental funds, of which four are considered major funds for presentation purposes.
Each major fund is presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances. The City’s four major funds are: the General
Fund, Traffic and Housing Mitigation, Gas Tax and Essential Facilities Capital Projects. Data from the other twenty-
five governmental funds are combined into a single, aggregated presentation. The basic governmental fund financial
statements can be found on pages 30 through 34 of this report. Individual fund data for each of these non-major
governmental funds is provided in the form of combining statements on pages 128 through 143 of this report.
Proprietary Funds – The City maintains two different types of proprietary funds - enterprise funds and internal
service funds. Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City uses an enterprise fund to account for its Parking Services program
and reports it as a major fund. Internal service funds are used to accumulate and allocate costs internally among the
City’s various functions. The City uses internal service funds to account for its building maintenance; vehicle,
equipment and computer replacement; workers’ compensation; general liability; self-insured dental program; other
employee and retiree benefits programs. Because these services predominantly benefit governmental rather than
business-type functions, they have been included within governmental activities in the government wide financial
statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more
detail. Like the government-wide financial statements, proprietary fund financial statements use the accrual basis of
accounting. There is no reconciliation needed between the government-wide financial statements for business-type
activities and the proprietary fund financial statements.
The proprietary fund financial statements can be found on pages 34 through 36 of this report.
7
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of
those funds are not available to support the City’s own programs. The City acts as an agent on behalf of others,
holding amounts collected, and disbursing them as directed or required. The City’s fiduciary activities are reported
in the separate Statements of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. The
City’s fiduciary funds include a private purpose trust fund to account for activities of the City of San Rafael Successor
Agency and a custodial fund that accounts for resources held by the City in a custodial capacity for the Pt. San Pedro
Road Assessment District. Information about the fiduciary funds can be found on pages 38 through 39 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements. The notes to the financial statements can be found on pages
41 through 95 of this report.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information. One section includes budgetary comparison statements for the General Fund and major
funds (general, gas tax, and traffic and housing mitigation). The other section includes schedules of funding progress
for the Marin County Employees’ Retirement System and the City’s OPEB plan. All budgeted positions that are filled
by either full-time or permanent part-time employees (working seventy-five percent of full-time equivalent) are
eligible to participate in the system and the OPEB plan. Required supplementary information can be found on pages
97 through 122 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
Net position measures the difference between (a) assets and deferred outflows of resources and (b) liabilities and
deferred inflows of resources. For the fiscal year ended June 30, 2025, the net position of the City was $327.4 million
from Governmental Activities and $11.1 million from Business-type Activities, for a total of $338.5 million. This
represents an increase of $17.0 million from the prior year’s net position.
8
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2025, and 2024:
The City’s governmental activities net position increased by $16.5 million during fiscal year 2024-2025. Current and
other governmental assets increased by $2.5 million mainly due to overall results of revenues outpacing expenses for
the year increasing cash and investment balances. The $4.5 million increase in capital assets reflects project-to-date
activity for major infrastructure improvements exceeding depreciation for the year. The increase of $5.1 million in
deferred outflows is primarily a result of the impact of pension-related adjustments to be recognized in future years.
The increase of $3.4 million in current and other liabilities is primarily due to the increase in accounts payable of
$2.9 million, simply reflecting the timing of payments on current year programs and projects. Noncurrent
governmental liabilities decreased by $8.8 million mainly as a result of the decrease in Pension and OPEB liabilities
of $5.1 million as well as the paydown of long-term debt. Deferred inflows increased by $842 thousand mainly
attributable to actuarial pension adjustments to be recognized in future periods.
The net position in business-type activities reflects the fiscal activity of the Parking Services program and increased
by $426 thousand from the previous year as revenues reflected a modest increase and exceeded expenses which
reflected a decrease in comparison to the prior year, primarily as a result of personnel costs attributable to vacant
positions. Current and other assets increased by $7 thousand as operations were largely break-even for the period.
Capital assets decreased by $260 thousand as the result of current year depreciation. Noncurrent liabilities decreased
by $802 thousand mainly due to a reduction in net pension and OPEB liabilities and paydown of long-term debt.
Increase Increase
2025 2024 (Decrease) 2025 2024 (Decrease)
Current and other assets $148,500 $146,001 $2,499 $1,525 $1,518 $7
Capital assets 324,231 319,756 4,475 14,483 14,743 (260)
Total assets 472,731 465,757 6,974 16,008 16,261 (253)
Deferred outflows (Notes 9 and 11)71,621 66,549 5,072 1,686 1,780 (94)
Current and other liabilities 21,467 18,004 3,463 587 528 59
Noncurrent liabilities 171,741 180,544 (8,803) 5,437 6,239 (802)
Total liabilities 193,208 198,548 (5,340) 6,024 6,767 (743)
Deferred inflows (Notes 4H, 9 and 11)23,765 22,923 842 541 571 (30)
Net Position:
Net investment in capital assets 276,991 268,520 8,471 11,424 11,354 70
Restricted 49,053 48,596 457 0
Unrestricted 1,335 (6,281) 7,616 (295) (651) 356
Total net position $327,379 $310,835 $16,544 $11,129 $10,703 $426
Governmental Activities Business-Typ e Activities
Summary of Net Position
(in thousands)
9
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
At June 30, 2025, City’s total net position increased to $338.5 million. The largest portion of total net position, in the
amount of $288.4 million, consisted of the City’s investment in capital assets net of related debt. This component
represents the total amount of funds required to acquire capital assets less any related debt used for such acquisition
that is still outstanding. The City uses these assets to provide services to residents. The capital assets of the City are
not sources of income for repayment of debt as most assets are not revenue generating and generally are not liquidated
to repay debt. Therefore, debt service payments are funded from other sources available to the City.
A portion of the City's total net position, $49.1 million, is subject to external restrictions, and their use is determined
by those restrictions whether legal or by covenant. In addition, the unrestricted $1.0 million represents the extent to
which total net assets exceed the net investment in capital assets and restricted net position.
6/30/2025 6/30/2024
Invested in Capital Assets (net) $288,415 $279,874 $8,541
Restricted 49,053 48,596 457
Unrestricted 1,040 (6,932) 7,972
Total Net Position:$338,508 $321,538 $16,970
Increase/
(Decrease)
Summary of Net Position
(in thousands)
10
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Statement of Activities - Governmental
The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ended June
30, 2025, and 2024:
Increase
2025 2024 (Decrease)
REVENUES
Program revenues:
Charges for services $21,036 $23,170 ($2,134)
Operating grants and contributions 9,970 6,531 3,439
Capital grants and contributions 3,220 8,181 (4,961)
Total program revenues 34,225 37,882 (3,657)
General revenues:
Property taxes 36,504 35,636 868
Sales taxes 45,905 44,554 1,351
Paramedic tax 5,415 5,316 99
Transient occupancy tax 3,583 3,593 (10)
Franchise tax 4,762 4,582 180
Business license tax 2,776 2,792 (16)
Other taxes 3,050 2,937 113
Investment earnings 6,635 5,284 1,351
Gain from sale of capital assets 192 42 150
Miscellaneous 2,926 3,241 (315)
Total general revenues 111,746 107,977 3,769
TOTAL REVENUES 145,972 145,859 113
EXPENSES
General government 17,615 14,902 2,713
Public safety 64,084 57,400 6,684
Public works and parks 27,724 24,392 3,332
Community/economic development 6,009 6,043 (35)
Culture and recreation 12,996 12,724 272
Interest on long-term debt 1,574 1,656 (82)
TOTAL EXPENSES 130,002 117,117 12,885
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 15,970 28,742 (12,772)
Transfers in 574 582 (8)
Total Other Financing Sources (Uses)574 582 (8)
Net Change in Net Position 16,544 29,324 (12,780)
Beginning Net Position 310,835 281,511 29,324
Ending Net Position, June 30 $327,379 $310,835 $16,544
Governmental Activities
Summary of Changes in Net Position
(in thousands)
11
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
The City’s governmental activities net position increased by $16.5 million during fiscal year 2024-2025. Total
revenues remained relatively flat year-over year, with a $3.7 million decline in program revenues offset by a $3.7
million increase in tax general revenues. Within program revenues, charges for services decreased $2.1 million
mainly as a result of development fees that drove a large increase in the prior year. Operating grants increased $3.4
million reflecting increased support for programs such as homelessness and sustainability. Capital grants and
contributions declined by $5.0 million, which reflects the decline in support received for major capital improvement
projects. Within the general revenues category, sales taxes increased by about $1.3 million while property taxes
increased by less than $1.0 million, reflecting a cooling off of the housing market in comparison to prior years. The
large increase in investment earnings of $1.3 million was a result of the favorable interest rate climate as well as
having a larger investable balance stemming from the prior year’s favorable results.
Overall operating expenses reflect an increase of $12.8 million for the year mainly resulting from increased personnel
costs stemming from new labor agreements with the City’s bargaining groups as well as a decrease in the number of
vacancies across the organization.
The following graph shows governmental revenues by source:
12
Capital grants and
contributions, 2.2196
Revenues by Source
Governmental Activities
Taxes, 69.8796
Charges for services,
14.4196
_ Operating grants and
contributions, 6.8396
Miscellaneous, 6.6896
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Total expenses for governmental activities were $130.0 million (including interest on long-term debt of $1.6 million).
Functional expenses for the year ended June 30, 2025, were as follows:
The following chart represents the extent to which program revenues offset functional expenses, by category:
•Those who directly benefited from programs contributed $21.0 million in charges for services.
•A total of $13.2 million in operating and capital projects were funded by outside agencies through operating
grants, capital grants, and contributions.
•As a result, total expenses that were funded by tax revenues, investment income, other general revenues and
fund balance were $95.8 million.
Function Amount Percent of Total
General government 17,615 13.6%
Public safety 64,084 49.3%
Public works and parks 27,724 21.3%
Community development 6,009 4.6%
Culture and recreation 12,996 10.0%
Interest on debt 1,574 1.2%
Total expenses $130,002 100%
Expenses by Function
(in thousands)
13
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$-
General Government
Expenses and Program Revenues
Governmental Activities
Public Safety
(in thousands)
Public Works and
Parks
■ Program Revenues ■ Expenses
Community
Development
Culture and
Recreation
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Statement of Activities – Business-Type
The net position for business-type activities increased from the prior year by $426 thousand as revenues increased by
$212 thousand, exceeding year-end expenditures which fell by $304 thousand in comparison to the prior year.
Parking services is the City’s only business-type activity with income derived from program revenues of $4.8 million.
Program revenues include parking meter coin income of $1.8 million and parking garage hourly and monthly parking
income of $0.9 million. Revenues also include parking and non-vehicle code fines totaling $2.4 million. Total
expenses for parking services were $3.8 million and transfers out to general fund and non-major governmental fund
for support totaled $574 thousand during the fiscal year 2024-2025.
Increase
2025 2024 (Decrease)
Revenues
Program revenues:
Charges for services $4,762 $4,553 $209
Total program revenues 4,762 4,553 209
General revenues:
Investment Income 12 9 3
Total general revenues 12 9 3
TOTAL REVENUES 4,774 4,562 212
Expenses
General government 3,774 4,078 (304)
TOTAL EXPENSES 3,774 4,078 (304)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENSES 1,000 484 516
OTHER FINANCING SOURCES (USES)
Transfers out (574)(582)8
Total Other Financing sources (uses)(574) (582) 8
Net Change in Net Position 426 (98) 524
Net Position, Beginning 10,703 10,801 (98)
Net Position, Ending $11,129 10,703 $426
Summary of Changes in Net Position
For the periods ended June 30, 2025 and 2024 (in thousands)
Business-Type Activities
14
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
Governmental Funds
Fund Balance Classifications
Fund balances are classified in five categories: non-spendable, restricted, committed, assigned, and unassigned based
on a hierarchy of constraint. Further details on fund balance classifications can be found in Note 8B.
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances
of spendable resources. Such information is useful in assessing the City’s financial capacity. In particular, unassigned
fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the
fiscal year.
As of June 30, 2025, the City reported a combined ending fund balance of $87.5 million for all governmental funds
(a decrease of $5.6 million from the prior year): $71 thousand is non-spendable, $48.9 million is restricted,
$14.8 million is committed, $18.5 million is assigned, and $5.4 million is unassigned.
General Fund – The General Fund is the primary operating fund of the City.
General Fund – The fund balance of the General Fund as of June 30, 2025, was $33.9 million (a decrease of
$2.5 million from the prior year balance): $71 thousand is non-spendable, $10.1 million is committed, $18.3 million
is assigned and $5.4 million is unassigned. The committed and unassigned portions of the balance include $10.1
million and $5.1 million for emergency and cash flow reserves, respectively. An additional $1.0 million of the
assigned fund balance represents the City’s capital (infrastructure) reserve.
The original adopted General Fund budget projected total revenue of $101.9 million and transfers-in of $2.5 million
for total resources of $104.4 million. This budget appropriated expenditures of $103.2 million and transfers-out of
$10.3 million for total appropriations of $113.5 million.
Actual revenues, at $105.8 million, exceeded original budgeted revenues by $3.8 million. The largest increase is
attributed to investment gains as interest rates increased City’s investable balance increased following favorable
results of the prior year. Sales Tax and Property Tax revenues also outperformed the budget by $1.0 million. Sales
taxes showed resiliency against perceived economic headwinds, especially toward the latter half of the year, whereas
property taxes benefited from larger than expected excess ERAF disbursements and supplemental tax. Expenditures
of $99.9 million were $3.8 million less than amended budgeted expenditures of $103.8 million, mainly a result of
unspent appropriations related to non-personnel expenditures, of which $2.1 million will be re-appropriated for use
in the 2025-2026 fiscal year. Personnel expenditures were in line with budget as the City saw a decrease in level of
staff vacancy rates that have been experienced in previous years.
Variances in debt service and issuance of long-term debt line items are the result of lease and subscription agreements
entered into during the year. Recent accounting guidance related to these transactions has yet to be incorporated into
the budgeting process.
15
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Traffic and Housing Mitigation Fund – The City uses this fund to collect developer contributions to be used for
major street improvement and housing infrastructure projects. During the year, the fund balance increased from $5.9
million to $6.6 million. Revenues for the fund can fluctuate significantly year to year as they are mainly a function
of development projects undergone during the year and for fiscal 2024-2025 totaled $1.4 million. Capital outlay for
the year of $97 thousand was related to a single project, the Grand Avenue Cycle Track, to add bicycle facility on the
east side of grand Avenue between Fourth Street and Second Street. The balance in the fund of $6.6 million is being
held in anticipation of major street projects identified in the General Plan 2040 and other qualifying expenditures.
Gas Tax Fund – The City uses this fund to manage its allocation of State gasoline taxes and local funding for street
maintenance projects. Gas tax revenues exceeded expenditures and net transfers by $1.9 million in fiscal year 2024-
2025 resulting in an increase in fund balance from $13.4 million to $15.3 million. The activities for the year were all
planned and approved project work.
Expenditures during fiscal year 2024-2025 totaled $6.5 million. In addition to routine street-related maintenance of
$3.2 million, major expenditures included $530 thousand for B Street at Woodland Culvert Repairs, $450 thousand
for third street rehabilitation project cost, and $400 thousand for the roundabout at Manuel T. Freitas.
Total revenues of $7.9 million were down about $4.7 million from the prior year mainly due to a reduction in
intergovernmental transfers and reimbursements related to the third street rehabilitation project that was completed
the prior year.
Essential Facilities Capital Projects Fund – The City uses this fund to account for major capital improvements to
public safety facilities. Activity in the fund has reduced as the initial major projects contemplated in creation of the
fund have been completed. During the year $744 thousand was mainly expended for remaining costs related to Fire
Stations 54 and 55.
Non-major Governmental Funds – The City’s non-major funds are presented in the basic financial statements in the
aggregate. At June 30, 2025, non-major funds had a total fund balance of $28.4 million, a $5.5 million decrease over
that of the previous year. Significant contributors to the overall fund balance decrease included the Capital
Improvement Fund ($3.5 million) and the Library Fund ($2.6 million) attributable to capital project expenditures.
The largest fund balance increase, $1.5 million, was recorded in the Measure C Wildfire Prevention Fund, with $3.9
million in revenues against $2.4 million in expenditures.
Adopted Budget Revised Budget Actual
Revenues $101,929 $101,929 $105,773
Transfers in 2,508 2,508 1,959
Total resources 104,438 104,438 107,732
Expenditures 103,185 $103,758 99,974
O perating transfers out 10,259 10,259 10,259
C apital transfers out -
Total uses 113,443 114,017 110,233
Ne t Results ($9,006)($9,579)($2,500)
Summary of General Fund Budget and Actual
For the fiscal year ended June 30, 2025 (in thousands)
16
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Of the ending total non-major fund balances of $28.4 million: $23.7 million (84%) is legally restricted for specific
purposes by external funding source providers, $4.7 million (16%) is committed for special purposes by the City
Council, $126 thousand (less than 1%) is assigned, and ($70,059) thousand (less than 1%) is unassigned. Additional
information about these aggregated non-major funds is presented in the combining statements which immediately
follow the required supplementary information.
Proprietary Funds
The City’s proprietary funds are presented in the basic financial statements in a manner similar to that found in the
government-wide financial statements, but in more detail. As noted in the Summary of Changes in Net Position –
Business-type Activities on page 24, the City’s enterprise fund net position increased by $426 thousand during the
fiscal year. The Parking Services Fund is the City’s sole business-type (Enterprise) activity.
The parking services fund’s operating revenue was recorded at $4.7 million, while enterprise fund operating expenses
were $3.6 million in fiscal year 2024-2025. Parking operations largely remained steady with results of previous years
with modest increases to revenues and a decrease in expenditures that can be attributed to personnel vacancies.
The City’s Internal Service Funds are also reported in this Proprietary Fund classification. In fiscal year 2024-2025,
the Internal Service Funds comprised of: Building Maintenance, Vehicle Replacement, Equipment Replacement,
Employee Benefits, Liability Insurance, Workers’ Compensation, Dental Insurance, Employee Retirement,
OPEB/Retiree Medical, Radio Replacement, Telephone Replacement and Sewer Maintenance. The net position of
the Internal Service Funds increased by $5.9 million compared to the prior year. Net investment in capital assets
increased by $464 thousand, while unrestricted fund balance increased by $5.4 million. The increase in capital assets
resulted primarily from vehicle purchases, offset by depreciation of existing capital assets. The increase in
unrestricted fund balance is primarily the result of transfers to the vehicle replacement fund, liability insurance fund,
and equipment replacement fund from prior year operating results in an effort to partially address shortfalls in those
areas.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental activities as of June 30, 2025, amounts to $324.2 million,
net of accumulated depreciation of $231.8 million. This investment in capital assets includes land, buildings,
improvements, machinery and equipment, infrastructure, right-to-use lease assets, and construction in progress.
Infrastructure assets are items that are normally immovable and of value only to the City such as roads, bridges,
streets and sidewalks, drainage systems, lighting systems, and similar items. The addition to the City’s investment
in capital assets for the current fiscal year was $14.3 million, offset by accumulated depreciation of $9.8 million.
Additions to capital assets during fiscal year 2024-2025 included:
•Machinery and Equipment: Vehicles totaling $2.4 million
•Infrastructure: $13.5 million
•Pickleweed Park Field Renovation - $5.6 million
•Downtown Carnegie Library Renovation - $2.6 million
•San Quentin Pump Station Reconstructions - $1.3 million
•B Street at Woodland Culvert Repairs- $530 thousand
•Peacock Gap Park Playground- $498 thousand
•Other - $2.4 million
•Right-to-use Subscription Assets: Permitting software totaling $55 thousand
17
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
A comparison of the City’s Capital Assets for the fiscal years ending June 30, 2025, and 2024 is presented below:
Additional information on the City’s capital assets can be found in Note 5 on pages 62 through 64 of this report.
2025 2024
Governmental Activities
Land $84,108 $84,108
Construction in progress 31,866 28,785
Land improvements 10,852 10,852
Buildings and structures 120,986 119,722
Machinery and equipment 24,469 23,445
Infrastructure 274,042 264,925
Intangible right-to-use leased building 5,476 5,476
Int angible right-to-use leased equipment 1,115 1,226
Int angible right-to-use subscription 3,139 3,252
Les s accumulated depreciation (231,822) (222,034)
Subtotal Governmental Activities 324,231 319,757
Business-type Activities
Land 8,621 8,621
Buildings and structures 10,736 10,736
Machinery and equipment 968 968
Less accumulated depreciation (5,842)(5,582)
Subtotal Business-type Activities 14,483 14,743
Total Capital Assets $338,715 $334,500
Summary of Capital Assets
(in thousands)
18
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
Debt Administration
The City’s debt obligations were stable year-over-year and reflect payments of principal made during the year. The
debt of the former Redevelopment Agency is reported under the Successor Agency, which is presented as a Private-
Purpose Trust Fund on the Statement of Fiduciary Net Position. (See Note 6 of the financial statements for additional
information on the debt obligations of the City and Note 16 for additional information on the Successor Agency.)
The City’s long-term obligations for the fiscal years ending June 30, 2025, and 2024 were as follows:
2025 2024
Governmental Activity Debt:
2018 Authority Lease Revenue Bond $38,756 $41,909
2010 Taxable Pension Obligation Bonds 640 1,240
PG & E Efficiency Note Payable 230 381
P G & E City Hall Efficiency Note Payable 100 121
Subtotal Governmental Activity Debt 39,726 43,651
Business-Type Activity Debt:
PG & E Parking Lot Lighting Retrofit Note Payable
2012 Authority Lease Revenue Refunding Bonds 3,059 3,389
Subtotal Business-Type Activity Debt 3,059 3,389
Total Long-Term Obligations $42,785 $47,040
Summary of Outstanding Long-Term Debt
(in thousands)
19
CITY OF SAN RAFAEL
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2025
ECONOMIC CLIMATE AND NEXT YEAR’S BUDGET
After several years of global economic turbulence, from the pandemic recovery to ongoing inflationary pressures, the
global economy is now entering a period of cautious stabilization. Inflation has moderated in most developed
economies but remains above long-term targets. As a result, global growth is expected to remain subdued, with the
International Monetary Fund projecting growth of approximately 3.1% in 2026, a marginal decline from 2025’s 3.2%.
Growth in emerging markets continues to outpace that of advanced economies, driven by manufacturing expansion
and infrastructure investment.
Nationally, the U.S. economy continues to adjust to a “higher-for-longer” interest rate environment. Inflation has
slowed but remains sticky, particularly in housing and services. Consumer spending, which has underpinned
economic resilience through much of the past two years, is beginning to show signs of fatigue. Business investment
remains steady but cautious as firms navigate higher financing costs and lingering uncertainty surrounding labor
markets and global trade. The Federal Reserve is expected to begin modest rate cuts in late 2025 if inflation continues
to ease toward its 2% target.
In California, national trends persist with some regional nuances. The state’s housing market remains constrained,
with affordability continuing to be a major barrier for both homeowners and renters. While the tech sector has
stabilized after widespread restructuring in recent years, job growth is being driven increasingly by healthcare, clean
energy, and advanced manufacturing. California’s unemployment rate remains slightly above the national average,
but productivity gains in key industries, such as biotech and artificial intelligence, position the state for renewed
growth as inflationary pressures subside.
Marin County remains relatively insulated from broader economic fluctuations due to its high median income, strong
local employment, and diversified tax base. The county’s unemployment rate continues to trend below both state and
national levels, supported by employment in healthcare, education, and professional services. However, persistent
housing affordability challenges and a limited labor supply continue to constrain growth potential. Consumer
spending in Marin remains steady, reflecting the region’s high-income stability, though discretionary spending is
expected to cool modestly in the coming year.
In San Rafael, economic indicators reflect a transition toward steadier, moderate growth. The city’s economy remains
anchored by its role as the county’s commercial and administrative hub, with major employment in healthcare,
education, retail, and public administration. Nonetheless, challenges such as housing affordability, transportation
connectivity, and shifts in the retail landscape continue to present long-term planning considerations.
The City enters the new fiscal year with a sound fiscal position and significant capital projects underway. Prudent
financial management in prior years has bolstered reserves, providing flexibility amid rising operational and
construction costs. As inflation continues to ease and economic conditions stabilize, maintaining a balanced approach
to project prioritization and long-term sustainability will be key to ensuring San Rafael’s continued economic
resilience.
REQUEST FOR INFORMATION
This financial report is designed to provide our residents, businesses, customers, and investors and creditors with a
general overview of the City’s finances and to demonstrate the City’s accountability for providing high quality
services within the limits of our fiscal resources. If you have questions about this report or need additional financial
information, contact the City of San Rafael – Finance Department at 1400 Fifth Avenue, Room 204, San Rafael,
California 94901.
20
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial
activities and financial position. They are also referred to as Government-wide financial statements.
The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of
resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital
assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of the
City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets and
deferred outflows of resources.
The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities
in a single column, and the financial position of all the City’s Business-type Activities in a single column;
these columns are followed by a total column which presents the financial position of the entire City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special
Revenue and Capital Projects Funds. Since the City’s Internal Service Funds service these Funds, their
activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and
balances. The City’s Business-type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on
the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of
when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial
statements, which reflect only current assets, current liabilities, deferred outflows/inflows of resources,
available revenues, and measurable expenditures.
The Statement of Activities presents the City’s expenses first, listed by program, and follows these with
the expenses of its business-type activities. Program revenues - that is, revenues which are generated
directly by these programs - are then deducted from program expenses to arrive at the net expense of each
governmental and Business-type program. The City’s general revenues are then listed in the
Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net
Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City and the San Rafael Joint Powers
Financing Authority which are legally separate but are considered to be component units of the City
because they are controlled by the City, which is financially accountable for their activities. The balances
and the activities of the San Rafael Sanitation District, a discretely presented component unit, are
included in these statements in a separate column.
21
CITY OF SAN RAFAEL
STATEMENT OF NET POSITION
JUNE 30, 2025
Component
Primary Government Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
ASSETS
Cash and investments available for operations (Note 2)$124,055,570 $312,002 $124,367,572 $41,982,433
Restricted cash and investments (Note 2)760,089 760,089
Receivables:
Accounts, net 3,033,864 1,212,598 4,246,462 1,649,483
Intergovernmental 10,571,348 10,571,348
Grants 808,290 808,290
Interest 882,821 882,821
Loans (Note 4A)3,699,917 3,699,917
Long-term receivable from San Rafael Sanitation District (Note 4G)2,023,239 2,023,239
Leases receivable (Note 4H)360,417 360,417
Prepaid expenses and others 2,304,292 2,304,292 97,238
Capital assets (Note 5):
Nondepreciable 115,973,571 8,620,853 124,594,424 11,804,711
Depreciable, net 208,257,875 5,862,591 214,120,466 67,107,884
Total Assets 472,731,293 16,008,044 488,739,337 122,641,749
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension (Note 9)65,683,064 1,588,276 67,271,340
Deferred outflows related to OPEB (Note 11) 5,937,697 97,529 6,035,226
Total Deferred Outflows of Resources 71,620,761 1,685,805 73,306,566
LIABILITIES
Accounts payable 11,847,538 180,545 12,028,083 1,285,154
Developer and other deposits payable 509,171 509,171
Interest payable 26,141 26,141
Unearned revenue 555,058 26,232 581,290
Claims payable (Note 13):
Due in one year 3,666,214 3,666,214
Due in more than one year 11,122,685 11,122,685
Compensated absences (Note 1L):
Due in one year 639,494 18,707 658,201
Due in more than one year 4,476,455 130,945 4,607,400
Long-term debt (Note 6):
Due in one year 3,684,623 335,000 4,019,623
Due in more than one year 36,041,452 2,724,378 38,765,830
Lease liabilities (Note 14):
Due in one year 169,137 169,137
Due in more than one year 6,055,521 6,055,521
Subscription liabilities (Note 14):
Due in one year 395,270 395,270
Due in more than one year 1,534,570 1,534,570
2,023,239
Net OPEB liability, due in more than one year (Note 11)17,860,029 293,359 18,153,388
Net Pension liability, due in more than one year (Note 9)94,650,674 2,288,740 96,939,414
Total Liabilities 193,207,891 6,024,047 199,231,938 3,308,393
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension (Note 9)20,059,681 485,061 20,544,742
Deferred inflows related to OPEB (Note 11)3,383,426 55,574 3,439,000
Deferred inflows related to leases receivable (Note 4H)322,172 322,172
Total Deferred Inflows of Resources 23,765,279 540,635 24,305,914
NET POSITION (Note 8):
Net investment in capital assets 276,990,873 11,424,066 288,414,939 78,412,120
Restricted for:
Special revenue projects:
Housing and street improvements 23,892,663 23,892,663
Stormwater 3,409,198 3,409,198
Emergency medical services 3,674,088 3,674,088
Other 14,128,896 14,128,896
Capital projects 3,947,924 3,947,924
Total Restricted Net Position 49,052,769 49,052,769
Unrestricted 1,335,242 (294,899) 1,040,343 40,921,236
Total Net Position $327,378,884 $11,129,167 $338,508,051 $119,333,356
See accompanying notes to financial statements
Long-term payable to the City of San Rafael, due in more than one year (Note 4G)
23
CITY OF SAN RAFAEL
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General government $17,615,468 $110,112 $2,989,641
Public safety 64,083,535 7,642,292 2,835,919
Public works and parks 27,724,431 2,952,012 3,407,856 $3,219,570
Community development 6,008,500 4,695,585
Culture and recreation 12,995,897 5,635,593 736,737
Interest on long-term debt 1,573,951
Total Governmental Activities 130,001,782 21,035,594 9,970,153 3,219,570
Business-type Activities:
Parking services 3,774,044 4,761,985
Total Business-type Activities 3,774,044 4,761,985
Total Primary Government $133,775,826 $25,797,579 $9,970,153 $3,219,570
Component Unit
San Rafael Sanitation District $16,260,424 $18,877,412 $5,694 $73,061
General revenues:
Taxes:
Property
Sales:
Sales and Use
Measure E three quarter-cents sales
Measure R quarter-cent sales
Paramedic
Transient occupancy
Franchise
Business license
Other
Investment earnings
Gain from sale of capital assets
Miscellaneous
Transfers (Note 3A)
Total general revenues and transfers
Change in Net Position
Net Position, beginning of year
Net Position, end of year
See accompanying notes to financial statements
24
Component
Primary Government Unit
San Rafael
Governmental Business-type Sanitation
Activities Activities Total District
($14,515,715)($14,515,715)
(53,605,324)(53,605,324)
(18,144,993)(18,144,993)
(1,312,915)(1,312,915)
(6,623,567)(6,623,567)
(1,573,951)(1,573,951)
(95,776,465)(95,776,465)
$987,941 987,941
987,941 987,941
(95,776,465)987,941 (94,788,524)
$2,695,743
36,503,556 36,503,556 2,442,140
26,299,762 26,299,762
14,739,752 14,739,752
4,865,497 4,865,497
5,414,694 5,414,694
3,583,020 3,583,020
4,761,953 4,761,953
2,775,503 2,775,503
3,049,543 3,049,543
6,635,209 12,119 6,647,328 1,898,333
191,839 191,839
2,925,920 2,925,920 110,928
573,993 (573,993)
112,320,241 (561,874) 111,758,367 4,451,401
16,543,776 426,067 16,969,843 7,147,144
310,835,108 10,703,100 321,538,208 112,186,212
$327,378,884 $11,129,167 $338,508,051 $119,333,356
Net (Expenses) Revenues and Changes in Net Position
25
FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year. Only
individual major funds are presented in the Fund Financial Statements, while non-major funds are combined
in a single column. Individual non-major funds may be found in the Supplemental Section.
The funds described below were determined to be major funds by the City in fiscal year 2024-2025:
GENERAL FUND
Established to account for all financial resources necessary to carry out basic governmental activities of
the City which are not accounted for in another fund. The General Fund supports essential City services
such as police and fire protection, building and street maintenance, libraries, recreation, parks, and open
space maintenance.
TRAFFIC AND HOUSING MITIGATION SPECIAL REVENUE FUND
Established to maintain long-term developer contributions for major housing and street improvement
projects.
GAS TAX SPECIAL REVENUE FUND
Established to receive and expend the City’s allocation of the State gasoline taxes.
ESSENTIAL FACILITIES CAPITAL PROJECTS FUND
Established to account for major capital improvements to public safety facilities.
27
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2025
Traffic and Essential Other Total
General Housing Facilities Capital Governmental Governmental
Fund Mitigation Gas Tax Projects Fund Funds Funds
ASSETS
Cash and investments available for operations (Note 2) $28,558,899 $4,795,326 $16,604,879 $3,321,176 $27,247,954 $80,528,234
Restricted cash and investments (Note 2)662,355 7,636 90,098 760,089
Receivables:
Accounts 1,583,708 1,446,374 3,030,082
Intergovernmental 9,794,025 411,936 365,387 10,571,348
Grants 21,157 787,133 808,290
Interest 882,821 882,821
Loans (Note 4A)399 1,839,685 1,859,833 3,699,917
Leases (Note 4H)15,912 344,505 360,417
Prepaids 70,759 70,759
Total Assets $41,590,035 $6,635,011 $17,016,815 $3,328,812 $32,141,284 $100,711,957
LIABILITIES
Accounts payable $6,095,624 $59,329 $1,723,554 $2,738,296 $10,616,803
Deposits payable 8,094 102,288 110,382
Developer deposits payable 395,154 3,635 398,789
Unearned revenue 555,058 555,058
Total Liabilities 6,498,872 59,329 1,723,554 3,399,277 11,681,032
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,162,311 1,162,311
Related to leases (Note 4H)14,033 308,139 322,172
Total Deferred Inflows of Resources 1,176,344 308,139 1,484,483
Fund Balances (Note 8):
Nonspendable 70,759 70,759
Restricted 6,575,682 15,293,261 $3,328,812 23,700,869 48,898,624
Committed 10,125,000 4,676,853 14,801,853
Assigned 18,341,628 126,205 18,467,833
Unassigned 5,377,432 (70,059) 5,307,373
Total Fund Balances 33,914,819 6,575,682 15,293,261 3,328,812 28,433,868 87,546,442
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $41,590,035 $6,635,011 $17,016,815 $3,328,812 $32,141,284 $100,711,957
Special Revenue Funds
See accompanying notes to basic financial statements
28
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2025
Total fund balances reported on the governmental funds balance sheet $87,546,442
Amounts reported for Governmental Activities in the Statement of Net Position are
different from those reported in the Governmental Funds because of the following:
Capital assets used in Governmental Activities are not financial resources and,
therefore, are not reported in the Governmental Funds. 310,107,347
Internal service funds are used by management to charge the cost of management of
43,085,161
Long-term liabilities, including bonds payable, lease liabilities and subscription liabilities,
are not due and payable in the current period and, therefore, are not reported in the
Governmental Funds.(47,096,618)
Compensated absences (5,115,949)
Unavailable revenue 1,162,311
Long-term receivable from San Rafael Sanitation District 2,023,239
Deferred outflows related to pension 65,683,064
Net pension liability (94,650,674)
Deferred inflows related to pension (20,059,681)
Deferred outflows related to OPEB 5,937,697
Deferred inflows related to OPEB (3,383,426)
Net OPEB liability (17,860,029)
Net position of governmental activities $327,378,884
building, workers' compensation, employee benefits, insurance, and post-retirement healthcare
benefits to individual funds. The assets and liabilities are included in Governmental Activities in
the Statement of Net Position.
See accompanying notes to financial statements
29
CITY OF SAN RAFAEL
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025
Traffic and Essential Other Total
Housing Facilities Capital Governmental Governmental
General Mitigation Gas Tax Projects Fund Funds Funds
REVENUES
Taxes and special assessments $91,003,535 $9,955,612 $100,959,147
Licenses and permits 3,346,342 3,346,342
Fines and forfeitures 297,212 297,212
Use of money and properties 2,306,492 $211,234 $570,211 $126,997 1,289,284 4,504,218
Intergovernmental 4,729,694 989,165 5,277,328 5,906,227 16,902,414
Charges for services 3,163,591 179,608 2,061,008 10,778,136 16,182,343
Other revenue 926,142 3,470 53,246 1,037,065 2,019,923
Total Revenues 105,773,008 1,383,477 7,961,793 126,997 28,966,324 144,211,599
EXPENDITURES
Current:
General government 16,477,488 2,679,388 19,156,876
Public safety 53,289,499 13,811,575 67,101,074
Public works and parks 15,462,738 149,245 4,876,064 1,296,156 21,784,203
Community development 5,909,774 225,334 228,701 6,363,809
Culture and recreation 3,006,272 10,216,030 13,222,302
Capital outlay 97,393 1,655,297 744,275 11,671,194 14,168,159
Debt service:
Principal 3,794,498 3,794,498
Interest and fiscal charges 2,034,131 2,034,131
Total Expenditures 99,974,400 471,972 6,531,361 744,275 39,903,044 147,625,052
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,798,608 911,505 1,430,432 (617,278) (10,936,720) (3,413,453)
OTHER FINANCING SOURCES (USES)
Transfers in (Note 3A)1,959,435 1,250,000 353,500 5,624,543 9,187,478
Transfers out (Note 3A)(10,258,500) (250,000) (760,000)(151,129) (11,419,629)
Total Other Financing Sources (Uses) (8,299,065) (250,000) 490,000 353,500 5,473,414 (2,232,151)
Net Change in Fund Balances (2,500,457) 661,505 1,920,432 (263,778) (5,463,306) (5,645,604)
FUND BALANCES, BEGINNING OF YEAR 36,415,276 5,914,177 13,372,829 3,592,590 33,897,174 93,192,046
FUND BALANCES, END OF YEAR $33,914,819 $6,575,682 $15,293,261 $3,328,812 $28,433,868 $87,546,442
See accompanying notes to financial statements
Special Revenue Funds
30
CITY OF SAN RAFAEL
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS ($5,645,604)
Amounts reported for Governmental Activities in the Statement of Activities are
different because of the following:
Capital Assets Transactions
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities
the cost of those assets is capitalized and allocated over their estimated useful lives and reported
as depreciation and amortization expense.
Capital outlay and improvement expenditures are added back to fund balance 14,117,197
Retirement of capital assets is deducted from fund balance (66,757)
Depreciation and amortization expense is deducted from fund balance (9,746,254)
(Depreciation and amortization expense is net of internal service fund depreciation
and amortization of $1,769,951, which has already been allocated to serviced funds).
Long-Term Debt and Lease Liability Proceeds and Payments
Governmental funds record proceeds and payments as other financing sources and expenditures.
However, in the Statement of Net Position, those costs are reversed as increases and decreases
in long-term liabilities.
Repayments of long-term debt principal 3,396,351
Amortized bond premium expense is added back to fund balance 507,943
Repayments of lease principal 180,733
Repayments of subscription principal 217,414
Accrual of Non-Current Items
The amount below included in the Statement of Activities does not require the use of current financial
Compensated absences (681,457)
Unavailable revenue (4,585)
Long-term receivable from San Rafael Sanitation District (439,830)
Net Pension (Asset) Liability Transactions
Governmental funds record pension expense as it is paid. However,
in the Statement of Activities those costs are reversed as deferred outflows/(inflows)
and an increase/(decrease) in net pension (asset) liability.6,198,454
Net OPEB Liability Transactions
Governmental funds record OPEB expense as it is paid. However,
in the Statement of Activities those costs are reversed as deferred outflows/(inflows)
and an increase/(decrease) in net OPEB liability.2,608,984
Allocation of Internal Service Fund Activities
Internal service funds are used by management to charge the costs of certain activities to individual
funds. The net revenue of the internal service fund is reported with governmental activities.5,901,187
Change in Net Position of Governmental Activities $16,543,776
resources and therefore is not reported as revenue or expenditures in governmental funds (net change):
See accompanying notes to financial statements
31
PROPRIETARY FUND FINANCIAL STATEMENTS
Proprietary funds account for City operations financed and operated in a manner similar to a private business
enterprise. The intent of the City is that the cost of providing goods and services be financed primarily
through user charges, whether external or internal.
The City reports its only enterprise fund as a major fund.
PARKING SERVICES FUND
Established to maintain parking garages, lots, and spaces in the Downtown Parking District, and to pay
for parking enforcement and meter collection.
INTERNAL SERVICE FUNDS
Established to account for department services and financing performed for other departments within the
same governmental jurisdiction. Funding comes from charges assessed to the departments benefiting
from the service.
33
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2025
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds
ASSETS
Current Assets:
Cash and investments available for operations (Note 2) $312,002 $43,527,336
Receivable:
Accounts, net 1,212,598 3,782
Grants
Prepaid expense 2,233,533
Total Current Assets 1,524,600 45,764,651
Noncurrent Assets:
Capital assets (Note 5):
Nondepreciable 8,620,853 169,757
Depreciable, net 5,862,591 13,954,342
Total Noncurrent Assets 14,483,444 14,124,099
Total Assets 16,008,044 59,888,750
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension (Note 9) 1,588,276
Deferred outflows related to OPEB (Note 11) 97,529
Total Deferred Outflows of Resources 1,685,805
LIABILITIES
Current Liabilities:
Accounts payable 180,545 1,230,735
Interest payable 26,141
Unearned revenue 26,232
Compensated absences, due in one year (Note 1L) 18,707
Claims payable, due in one year (Note 13) 3,666,214
Long-term debt, due in one year (Note 6) 335,000 21,755
Subscription liabilities, due in one year (Note 14) 289,912
Total Current Liabilities 586,625 5,208,616
Noncurrent Liabilities:
Compensated absences (Note 1L) 130,945
Claims payable (Note 13)11,122,685
Long-term debt (Note 6) 2,724,378 77,953
Net OPEB liability (Note 11) 293,359
Net pension liability (Note 9) 2,288,740
Subscription liabilities (Note 14)394,335
Total Noncurrent Liabilities 5,437,422 11,594,973
Total Liabilities 6,024,047 16,803,589
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension (Note 9)485,061
Deferred inflows related to OPEB (Note 11)55,574
Total Deferred Inflows of Resources 540,635
NET POSITION (Note 8):
Net investment in capital assets 11,424,066 13,340,144
Unrestricted (294,899) 29,745,017
Total Net Position $11,129,167 $43,085,161
See accompanying notes to financial statements
34
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds
OPERATING REVENUES
Charges for current services $2,372,588 $21,056,978
Other operating revenues 2,389,397 1,810,990
Total Operating Revenues 4,761,985 22,867,968
OPERATING EXPENSES
Personnel 1,667,926 4,813,596
Insurance premiums and claims 9,531,787
Maintenance and repairs 160,259 348,459
Depreciation and amortization expense (Note 5) 259,369 1,769,951
General and administrative 1,562,370 5,032,219
Total Operating Expenses 3,649,924 21,496,012
Operating Income 1,112,061 1,371,956
NONOPERATING REVENUES (EXPENSES)
Investment income 12,119 1,572,712
Miscellaneous revenue 6,299
Interest expense (124,120) (47,763)
Gain on sale of capital assets 191,839
Total Nonoperating Revenues (Expenses) (112,001) 1,723,087
Income Before Transfers 1,000,060 3,095,043
TRANSFERS
Transfers in (Note 3A)3,500,000
Transfers out (Note 3A) (573,993) (693,856)
Net transfers (573,993) 2,806,144
Change in Net Position 426,067 5,901,187
NET POSITION, BEGINNING OF YEAR 10,703,100 37,183,974
NET POSITION, END OF YEAR $11,129,167 $43,085,161
See accompanying notes to financial statements
35
CITY OF SAN RAFAEL
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2025
Business-type
Activities - Governmental
Enterprise Fund Activities
Parking Internal
Services Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $4,636,527 $21,853,233
Cash payments to suppliers for goods and services (1,672,215) (18,965,740)
Cash payments to employees for salaries and benefits (2,069,978) (1,547,267)
Other revenues 1,810,990
Cash Flows from Operating Activities 894,334 3,151,216
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Miscellaneous revenues 6,299
Interfund revenues 3,500,000
Interfund payments (573,993) (1,088,034)
Cash Flows from Noncapital
Financing Activities (573,993)2,418,265
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal payments on revenue bonds and note payable (330,000)(21,755)
Principal payments on subscription liability (271,026)
Interest expenses and fiscal charges (126,076)(47,763)
Acquisition of capital assets (1,941,308)
Proceeds from sale of property 191,839
Cash Flows from Capital and
Related Financing Activities (456,076) (2,090,013)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 12,119 1,572,712
Cash Flows from Investing Activities 12,119 1,572,712
NET CHANGE IN CASH AND CASH EQUIVALENTS (123,616)5,052,180
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 435,618 38,475,156
CASH AND CASH EQUIVALENTS, END OF YEAR $312,002 $43,527,336
Reconciliation of operating income to net cash
provided by operating activities:
Operating income $1,112,061 $1,371,956
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation and amortization 259,369 1,769,951
Net change in assets and liabilities:
Accounts receivable (130,216)795,255
Grant receivable 1,000
Prepaids (1,372,480)
OPEB-related items (42,854)
Accounts payable 50,414 298,497
Unearned revenue 4,758
Compensated absence obligations 10,993
Pension-related items (370,191)
Claims payable 287,037
Net Cash Provided by Operating Activities $894,334 $3,151,216
NON-CASH TRANSACTIONS:
Retirement of capital assets
Amortization of bond discount $725
See accompanying notes to basic financial statements
36
FIDUCIARY FUND FINANCIAL STATEMENTS
Fiduciary funds are used to account for assets held by the City as an agent or custodian for other entities.
The financial activities of such funds are excluded from the Government-wide financial statements and
present fund statements that consist of a Statement of Net Position and a Statement of Changes in Net
Position.
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY – PRIVATE PURPOSE
TRUST FUND
Established to account for the activities of the Successor Agency to the San Rafael Redevelopment
Agency.
PT. SAN PEDRO ROAD ASSESSMENT DISTRICT CUSTODIAL FUND
Established to accumulate funds for payment of principal and interest for Pt. San Pedro Road Median
Landscaping Assessment District bonds.
37
Successor Agency
to the Pt. San Pedro
Redevelopment Road Assessment
Agency District
Private-Purpose Custodial
Trust Fund Fund
ASSETS
Cash available for operations (Note 2)$33,117 $255,411
Receivables:
Taxes 1,272
Total Assets 33,117 256,683
LIABILITIES
Interest payable 15,636
Total Liabilities 15,636
NET POSITION
Restricted for:
Bondholders 33,117 241,047
Total Net Position $33,117 $241,047
See accompanying notes to financial statements
CITY OF SAN RAFAEL
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2025
38
Successor Agency
to the Pt. San Pedro
Redevelopment Road Assessment
Agency District
Private-Purpose Custodial
Trust Fund Fund
ADDITIONS
Property taxes $159,034
Total Additions 159,034
DEDUCTIONS
General government $5,870 8,033
Payments to bondholders 93,200
Interest expense 47,723
Total Deductions 5,870 148,956
Change in Net Position (5,870)10,078
NET POSITION
Beginning of year 38,987 230,969
End of year $33,117 $241,047
CITY OF SAN RAFAEL
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025
See accompanying notes to financial statements
39
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City of
San Rafael (the City) as the Primary Government, with its component units for which the City is
considered financially accountable. The component units discussed below are included in the City's
reporting entity because of the significance of their operational and financial relationships with the
City.
B. Description of Blended Component Unit
The accompanying basic financial statements include all funds and boards and commissions that
are controlled by the City Council. The basic financial statements include the City’s blended
component units, entities for which the City is considered to be financially accountable. A
blended component unit, although a legally separate entity, is in substance, part of the City’s
operations and so data from this entity is combined with the City. The City’s blended component
unit is described below.
San Rafael Joint Powers Financing Authority – The San Rafael Joint Powers Financing
Authority (Authority) was formed by the City of San Rafael and the former San Rafael
Redevelopment Agency (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 in the financing
and refinancing of certain assessment district and redevelopment-related activities in the City. On
March 18, 2013, the Agency was replaced by the California Municipal Finance Authority
(CMFA) in order to allow the life of the Authority to extend beyond that of the Agency. The
Authority is administered by a governing board whose members are the City Council of the City.
Activities of the Authority related to the 2012 Authority Lease Revenue Refunding Bonds are
reported in the Parking Services Enterprise Fund. Activities of the Authority related to the 2018
Authority Lease Revenue Bonds are reported in the City’s General Fund. Separate financial
statements are not prepared for the Authority.
C. Description of Discretely Presented Component Unit
San Rafael Sanitation District – The San Rafael Sanitation District (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 and adjacent 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 appoints two out of the three board members and has the
ability to remove the two board members at will.
The City contracts with the District to maintain the collection systems in the City and surrounding
unincorporated areas. These employees are paid through the City’s payroll department and
participate in the City’s cost-sharing multiple-employer defined benefit pension plan administered
by the Marin County Employees’ Retirement Association. The employees also participate in the
City’s healthcare benefits plan which includes a provision for postemployment benefits. These
costs are the obligation of the District and not the City. As discussed in Note 4G, a receivable
from the District has been established.
41
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The District’s activities are reported as a discretely presented component unit in a separate
column in the basic financial statements which includes the District’s assets, liabilities, revenues,
expenses, and results of operations. The District’s fiscal year ends on June 30 and its separately
issued component unit financial statements can be obtained at the San Rafael Sanitation District,
111 Morphew Street, San Rafael, California 94901.
D. Basis of Presentation
Government-wide Statements – The Statement of Net Position and the Statement of Activities
display information about the primary government (the City) and its component units. These
statements include the financial activities of the overall City government, except for fiduciary
activities. Interfund transfers and amounts owed between funds within the primary government
have been eliminated from the statements. Amounts representing interfund services and uses
remain in the statements. These statements distinguish between the governmental and business-
type activities of the City. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other nonexchange transactions. Business-type activities are
financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues
for each segment of the business-type activities of the City and for each function of the City’s
governmental activities. Direct expenses are those that are specifically associated with a program
or function. Program revenues include (a) charges paid by the recipients of goods or services
offered by the programs, (b) grants and contributions that are restricted to meeting the operational
needs of a particular program and (c) fees, grants and contributions that are restricted to financing
the acquisition or construction of capital assets. Revenues that are not classified as program
revenues, including all taxes, are presented as general revenues.
Fund Financial Statements – The fund financial statements provide information about the City’s
funds, including fiduciary funds and blended component units. Separate statements for each fund
category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund
financial statements is on major individual governmental and enterprise funds, each of which is
displayed in a separate column. All remaining governmental and enterprise funds are aggregated
and reported as non-major funds.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are those in
which each party receives and gives up essentially equal values. Nonoperating revenues, such as
subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
E. Major Funds and Other Reported Funds
Major funds are defined as funds that have either assets and deferred outflows of resources,
liabilities and deferred inflows of resources, revenues, or expenditures/expenses equal to ten
percent of their fund-type total and five percent of the grand total. The General Fund is always a
major fund. The City may also select other funds it believes should be presented as major funds.
42
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The City reported the following major governmental funds in the accompanying financial
statements:
General Fund – Established to account for all financial resources necessary to carry out basic
governmental activities of the City which are not accounted for in another fund.
Traffic and Housing Mitigation Special Revenue Fund – Established to maintain long-term
developer contributions for major housing and street improvement projects.
Gas Tax Special Revenue Fund – Established to receive and expend the City’s allocation of
State gasoline taxes.
Essential Facilities Capital Projects Fund – Established to account for major capital
improvements to public safety facilities.
The City reported its only enterprise fund as a major fund in the accompanying financial
statements. The enterprise fund is:
Parking Services Fund – Established to maintain parking garages, lots, and spaces in the
Downtown Parking District, and to pay for parking enforcement, meter collection, and downtown
enforcement services.
The City also reports the following fund types:
Internal Service Funds – These funds account for: building maintenance; vehicle, equipment,
radio, and telephone replacement; employee benefits; liability insurance; workers’ compensation;
dental insurance; employee retirement; retiree medical (OPEB); and sewer maintenance.
Fiduciary Funds – These funds include: Successor Agency to the Redevelopment Agency Private-
Purpose Trust Fund – which accounts for the accumulation of resources held by the Successor
Agency to the Redevelopment Agency to be used for payments at appropriate amounts and times
in the future; and Pt. San Pedro Road Assessment District Custodial Fund – which accumulates
funds for the payment of principal and interest for Pt. San Pedro Road Median Landscaping
District bonds. The financial activities of these funds are excluded from the government-wide
financial statements, but are presented in the separate Fiduciary Fund financial statements.
F. Basis of Accounting
The government-wide, proprietary, fiduciary and discretely presented component unit financial
statements are reported using the economic resources measurement focus and the full accrual
basis of accounting. Revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred, regardless of when the related cash flows take place.
43
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Governmental funds are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Under this method, revenues are recognized when
measurable and available. The City considers all revenues reported in the governmental funds to
be available if the revenues are collected within sixty days after year-end with the exception of
sales and use tax revenues which are reported as available if collected within ninety days of year-
end. Expenditures are recorded when the related fund liability is incurred, except for principal
and interest on long-term debt, including lease and subscription liabilities, claims and judgments,
and compensated absences, which are recognized as expenditures to the extent they have
matured. General capital asset acquisitions, including entering into contracts giving the City the
right-to-use leased assets, are reported as expenditures in governmental funds. Proceeds from
long-term debt and financing through leases are reported as other financing sources.
Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental
revenues, interest revenue, charges for services, fines, and forfeitures. Other receipts and taxes
are recognized as revenue when the cash is received.
Non-exchange transactions, in which the City gives or receives value without directly receiving
or giving equal value in exchange include taxes, grants, entitlements, and donations. On the
accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or
assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in
which all eligibility requirements have been satisfied. Under the terms of grant agreements, the
City may fund certain programs with a combination of cost-reimbursement grants, categorical
block grants, and general revenue. Thus, both restricted and unrestricted net position may be
made available to finance program expenditures. The City’s policy is to first apply restricted
grant resources to such programs, followed by general revenues if necessary.
The City considers restricted shared state revenues such as gasoline taxes and public safety sales
taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits,
charges for services, and program grants as program revenues.
Certain indirect costs are included in program expenses reported for individual functions and
activities.
G. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net assets that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until
then.
44
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In addition to liabilities, the statement of financial position or balance sheet will sometimes report
a separate section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources, represents an acquisition of net assets that applies to a future
period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
Unavailable revenue, a type of deferred inflow of resources, is reported in the governmental
funds balance sheet. The governmental funds report unavailable revenues from intergovernmental
receivables and deferred amounts related to leases. These amounts are deferred and recognized as
an inflow of resources in the period that the amounts become available.
H. Budgets, Budgetary Accounting, and Encumbrances
The City adopts an annual budget which is effective July 1 for the ensuing fiscal year. The budget
reflects estimated revenues and expenditures, except for the capital projects funds. Appropriations
and spending authorizations for projects in the capital projects funds and some special revenue
funds are approved by the City Council on a multi-year basis. 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 in order to respond to emerging needs, changes in resources, or
shifting priorities. Expenditures may not exceed appropriations at the fund level, which is the legal
level of control. The City Manager is authorized to transfer budgeted amounts between accounts,
departments, or funds; the Council must approve any increase in the City’s operating expenditures,
appropriations for capital projects, and transfers between major funds and reportable fund groups.
Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the
General Fund and Special Revenue Funds.
Encumbrance accounting, under which purchase orders for expenditures are recorded in order to
reserve that portion of the applicable appropriation, is employed as an extension of the budgetary
process. All unencumbered appropriations lapse at year end.
For the fiscal year ended June 30, 2025, the following expenditures exceeded the budgeted
appropriations:
Expenditures
Exceeded Budget
Recreation Revolving Special Revenue Fund $13,803
Public Safety Special Revenue Fund 17,142
The above expenditures exceeded the budgeted appropriations, however, there were sufficient
revenues to cover the excess expenditures during the fiscal year in the Public Safety Special
Revenue Fund. Revenues were not sufficient to cover the excess expenditures of $13,803 during the
fiscal year. Furthermore, the Recreation Revolving Special Revenue Fund has a fund balance deficit
of $70,059 at June 30, 2025. See further discussion in Note 8D.
45
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
I. Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments
(including all restricted assets) with maturities of three months or less when purchased to be cash
equivalents. The City maintains a cash and investment pool that is available for use by all funds.
As the proprietary funds' share of this pool is readily available when needed, such share is also
considered to be cash equivalent.
J. Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements. The cost of
prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
K. Capital Assets
City
Contributed capital assets are valued at their estimated acquisition value on the date contributed.
Donated capital assets, donated works of art and similar items, and capital assets received in a
service concession arrangement are recorded at acquisition value. All other capital assets are
valued at historical cost or estimated historical cost if actual historical cost is not available, except
for intangible right-to-use lease assets and intangible right-to-use subscription assets, the
measurement of which is discussed in Note 1R and Note 1S, respectively, below. Major outlays
for capital assets and improvements are capitalized as projects are constructed.
City policy has set the capitalization thresholds for reporting capital assets at the following:
General capital assets Ranging from $5,000 to $50,000
Infrastructure capital assets Ranging from $25,000 to $250,000
Depreciation is provided using the straight-line method which means the cost of the asset is divided
by its expected useful life in years and the result is charged to expense each year until the asset is
fully depreciated. The purpose of depreciation is to spread the cost of capital assets equitably among
all users over the life of these assets. The amount charged to depreciation expense each year
represents that year’s pro rata share of the cost of capital assets.
The City has assigned the useful lives listed below to capital assets:
Buildings, improvements, and structures 20 – 50 years
Machinery and equipment 4 – 20 years
Infrastructure 15 – 50 years
Right to use leased building 35 years
Right to use leased equipment 1.5 – 5 years
Right to use subscription asset 5 – 10 years
46
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
District
Collection systems and facilities purchased or constructed are stated at cost. Assets contributed are
recorded at the estimated acquisition value at the date received. Interest is capitalized for assets
constructed when applicable. The costs of normal repairs and maintenance that do not add to the
value of an asset or materially extend asset lives are not capitalized. Improvements are capitalized
and depreciated over the remaining useful lives of the related capital assets, as applicable.
Applicable capital assets must be capitalized for amounts $1,000 or above and may be capitalized
for amounts from $500 to $1,000 if determined to be sensitive. Depreciation is provided by the
straight-line method over the estimated useful lives of capital assets as follows:
Subsurface lines 50 – 80 years
Sewage collection facilities 5 – 50 years
General plant and administrative facilities 3 – 15 years
L. Compensated Absences
Compensated absences are accrued as earned. Upon termination, employees are paid for all unused
vacation at their current hourly rates. Unused sick leave may be compensable up to 600 hours,
depending upon the provisions of the MOUs, which vary by bargaining unit.
The long-term portion of the liability for compensated absences for governmental fund type
operations is recorded as compensated absences in the government-wide financial statements.
Proprietary fund liabilities are recorded within their respective funds.
The changes in compensated absences as of June 30, 2025 were as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance $4,434,492 $138,659 $4,573,151
Net change 681,457 10,993 692,450
Ending Balance $5,115,949 $149,652 $5,265,601
Current Portion $639,494 $18,707 $658,201
47
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
M. Property Tax Levy, Collection and Maximum Rates – City
State of California Constitution Article XIII A provides that the combined maximum property tax
rate on any given property may not exceed 1% 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 2% per year unless the
property is sold, transferred, or substantially improved. The State Legislature has determined the
method of distribution of receipts from a 1% tax levy among the counties, cities, school districts and
other districts. Marin County assesses properties, bills for, and collects property taxes on the
schedule that follows:
Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31)
50% on February 1 (April 10)
For assessment and collection purposes, property is classified as either “secured” or “unsecured” and
is listed accordingly on separate parts of the assessment roll. The “secured roll” is that part of the
assessment roll containing State-assessed property and real property having a tax lien that is
sufficient, in the opinion of the County Assessor, to secure payment of the taxes. Unsecured property
comprises all taxable property not attached to land, such as personal property or business property.
Every tax levied by a county that becomes a lien on secured property has priority over all present and
future private liens arising pursuant to State law on the secured property, regardless of the time of the
creation of the other liens. A tax levied on unsecured property does not become a lien against the
taxed unsecured property, but may become a lien on other property owned by the taxpayer.
Property taxes are levied and 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 authorized 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
N. Sewer Charges – District
Sewer charges are billed and collected on behalf of the District by the County of Marin as a
special assessment on annual property tax billings. Property taxes are levied on January 1 and are
due in two equal installments on November 1 and February 1 and become delinquent December
10 and April 10, for the first and second installments, respectively. In accordance with the Teeter
Plan, the County remits to the District all charges which are assessed and the county retains
responsibility for collecting past due amounts.
The Teeter Plan provides that the County advance the District its share of the annual gross levy of
secured property taxes and special assessments. In consideration, the District gives the County of
Marin its rights to penalties and interest on delinquent secured property tax receivables and actual
proceeds collected.
48
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
O. Connection Fees – District
Connection fees represent a one-time contribution of resources to the District imposed on
contractors and developers for the purpose of financing capital improvements. Connection fees
are recognized after non-operating revenues (expenses) in the statement of revenues, expenses,
and changes in net position. The District utilizes connection fees received on a first-in-first-out
basis to finance current year capital projects. Accordingly, if there is a balance of connection fees
available at year-end, it is classified as restricted net position.
P. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The City
categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation
techniques used to measure fair value into three levels based on the extent to which inputs used in
measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are
observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair
value hierarchy, the measurement is considered to be based on the lowest priority level input that is
significant to the entire measurement.
Q. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent asset and liabilities at the dates of the financial statements
and the reported amounts of revenues and expenditures/expenses during the reporting periods.
Actual results could differ from those estimates.
R. Leases
A lease is defined as a contract that conveys control of the right to use another entity’s
nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an
exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land,
vehicles, and equipment.
Lessee – The City is a lessee for noncancelable leases of equipment and land. The City
recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the
government‐wide financial statements. The City recognizes lease liabilities in accordance with
the capitalization policy for the underlying asset as discussed in Note 1K.
49
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
At the commencement of a lease, the City initially measures the lease liability at the present value
of payments expected to be made during the lease term. Subsequently, the lease liability is
reduced by the principal portion of lease payments made. The lease asset is initially measured as
the initial amount of the lease liability, adjusted for lease payments made at or before the lease
commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on
a straight‐line basis over the lesser of its useful life or the life of the lease agreement.
Key estimates and judgments related to leases include how the City determines (1) the discount
rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease
payments as follows:
• The City uses the interest rate charged by the lessor as the discount rate. When the
interest rate charged by the lessor is not provided, the City generally uses its estimated
incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancelable period of the lease.
• Lease payments included in the measurement of the lease liability are composed of fixed
payments and purchase option price that the City is reasonably certain to exercise, if
applicable.
The City monitors changes in circumstances that would require a remeasurement of its lease and
will remeasure the lease asset and liability if certain changes occur that are expected to
significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term
lease liabilities on the statement of net position.
Lessor – The City is a lessor for noncancellable leases of certain buildings and land. The City
recognizes a lease receivable and a deferred inflow of resources in the government‐wide and
governmental fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present
value of payments expected to be received during the lease term. Subsequently, the lease
receivable is reduced by the principal portion of lease payments received. The deferred inflow of
resources is initially measured as the initial amount of the lease receivable, adjusted for lease
payments received at or before the lease commencement date. Subsequently, the deferred inflow
of resources is recognized as revenue over the life of the lease term.
50
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Key estimates and judgments include how the City determines (1) the discount rate it uses to
discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as
follows:
• The City uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancelable period of the lease.
• Lease receipts included in the measurement of the lease receivable is composed of fixed
payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and
will remeasure the lease receivable and deferred inflows of resources if certain changes occur that
are expected to significantly affect the amount of the lease receivable.
S. Subscription-Based Information Technology Arrangements (SBITAs)
A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys
control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in
combination with tangible capital assets (the underlying IT assets), as specified in the contract for
a period of time in an exchange or exchange-like transaction.
At the commencement of a SBITA, the City initially measures the subscription liability at the
present value of payments expected to be made during the contract term. Subsequently, the
subscription liability is reduced by the principal portion of payments made. The subscription asset
is initially measured as the initial amount of the subscription liability, adjusted for payments
made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently,
the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or
the useful life of the underlying IT assets.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount
rate it uses to discount the expected subscription payments to present value, (2) subscription term,
and (3) subscription payments as follows:
• The City uses the interest rate charged by the IT vendor as the discount rate. When the
interest rate charged by the IT vendor is not provided, the City generally uses its
estimated incremental borrowing rate as the discount rate for subscription liabilities.
• The subscription term includes the noncancellable period of the subscription.
• Subscription payments included in the measurement of the subscription liability are
composed of fixed payments and purchase option price that the City is reasonably certain
to exercise.
The City monitors changes in circumstances that would require a remeasurement of its
subscription and will remeasure the subscription asset and liability if certain changes occur that
are expected to significantly affect the amount of the subscription liability.
51
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Subscription assets are reported with other capital assets and subscription liabilities are reported
with long-term debt on the statement of net position.
T. New Accounting Pronouncements
GASB 101 – Compensated Absences - In June 2022, GASB issued Statement No. 101,
Compensated Absences. The objective of this Statement is to better meet the information needs of
financial statement users by updating the recognition and measurement guidance for compensated
absences. That objective is achieved by aligning the recognition and measurement guidance under
a unified model and by amending certain previously required disclosures. The provisions of this
Statement were implemented during fiscal year 2025. The implementation of this statement did
not have a material effect on the financial statements.
GASB 102 – Certain Risk Disclosures - In December 2023, GASB issued Statement No. 102,
Certain Risk Disclosures. The objective of this Statement is to provide users of government
financial statements with essential information about risks related to a government’s
vulnerabilities due to certain concentrations or constraints. The provisions of this Statement were
implemented during fiscal year 2025. The implementation of this statement had no effect on the
financial statements.
NOTE 2 – CASH AND INVESTMENTS
A. Policies
The City maintains an investment policy that emphasizes safety, liquidity, and reasonable market
yield. This policy is reviewed and approved by the City Council annually.
The City invests in individual investments and in investment pools. Individual investments are
evidenced by specific identifiable securities instruments, or by an electronic entry registering the
owner in the records of the institution issuing the security, called the book entry system. In order to
increase security, the City employs the trust department of a bank as the custodian of certain City
managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities
with a market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a
market value of 150% of the deposit, as collateral for these deposits. Under California Law this
collateral is held in a separate investment pool by another institution in the City’s name and places
the City ahead of general creditors of the institution.
The City’s investments are carried at fair value, as required by generally accepted accounting
principles. The City adjusts the carrying value of its investments to reflect their fair value at each
fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
52
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 2 – CASH AND INVESTMENTS (Continued)
B. Classification
Cash and investments as of June 30, 2025, are classified in the financial statements as shown below,
based on whether or not their use is restricted under the terms of City debt instruments or agency
agreements.
Statement of Net Position:
City of San Rafael:
Cash and investments available for operations $124,367,572
Restricted cash and investments 760,089
Total Primary Government Cash and Investments 125,127,661
San Rafael Sanitation District (Component Unit):
Cash and investments available for operations 41,982,433
Total San Rafael Sanitation District Cash and Investments 41,982,433
Statement of Fiduciary Net Position (separate statement):
Successor Agency to the Redevelopment Agency Private Purpose Trust Fund:
Cash available for operations 33,117
Pt. San Pedro Road Assessment District Custodial Fund:
Cash available for operations 255,411
Total Fiduciary Fund Cash and Investments 288,528
Total Cash and Investments $167,398,622
The City does not normally allocate investments by fund. Each proprietary fund’s portion of Cash
and Investments Available for Operations is in substance a demand deposit available to finance
operations and is considered a cash equivalent in preparing the statement of cash flows.
53
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 2 – CASH AND INVESTMENTS (Continued)
C. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s investment policy and the California Government Code allow the City to invest in the
following securities provided the credit ratings of the issuers are acceptable to the City and
approved percentages and maturities are not exceeded. The table below also identifies certain
provisions of the California Government Code, or the City’s Investment Policy where it is more
restrictive:
Minimum Maximum Maximum
Maximum Credit Percentage of Investment in
Authorized Investment TypeMaturityQuality (a)Portfolio (a)One Issuer
U.S. Government Obligations 5 years N/A No limit No limit
Federal Agency Securities and Instruments 5 years N/A No limit No limit
Repurchase Agreements 1 year N/A No limit No limit
Prime Commercial Paper 270 days A-1 25%
10% of total outstanding
commercial paper and
5% of portfolio
Banker's Acceptances 180 days A 40%$2,000,000
Medium-Term Corporate Notes 5 years A 30%5% of portfolio
Negotiable Certificates of Deposit 5 years A-1 30%5% of portfolio
Non-negotiable Certificates of Deposit 5 years N/A 20%5% of portfolio
Local Agency Investment Fund N/A N/A N/A $75m per Account
Money Market Funds N/A AAA 20%N/A
Mortgage and Asset-Backed Obligations 5 years AA 20%5% of portfolio
Supranational Securities 5 years AA 30%10% of portfolio
Limited Obligation Improvement Bonds Related to
Special Assessment Districts and Special Tax
Districts issued by the City of San Rafael 30 years N/A N/A N/A
(a) At time of purchase
The San Rafael Sanitation District maintains all of its cash in the County of Marin pooled
investment fund for the purpose of increasing interest earnings through pooled investment
activities.
The County Pool includes both voluntary and involuntary participation from external entities.
The District is a voluntary participant. The State of California statutes require certain special
districts and other governmental entities to maintain their cash surplus with the County Treasurer.
The District has approved by resolution, the investment policy of the County of Marin which
complies with the California Government Code.
54
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 2 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents
under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged as
reserves to be used if there are insufficient resources to meet debt repayment obligations. The
California Government Code requires these funds to be invested in accordance with City ordinance
bond indentures or State statute. The table below identifies the investment types that are authorized
for investments held by fiscal agents. The table also identifies certain provisions of these debt
agreements:
Maximum
Maturity
U.S. Treasury Obligations 5 years to no maximum N/A No Limit
U.S. Agency Securities 3 - 5 years N/A No Limit
U.S. Agency Instruments 5 years N/A No Limit
Repurchase Agreements 1 year A-1 No Limit
Bankers’ Acceptances 360 days Highest Category Rating No Limit
Money Market Mutual Funds N/A AAAm No Limit
Prime Commercial Paper 270 days Highest Category Rating No Limit
N/A Highest Category Rating No Limit
Municipal Obligations N/A Two Highest Category Ratings No Limit
Medium-Term Corporate Notes 5 Years A No Limit
Non-Negotiable Certificates of Deposit 180 Days N/A No Limit
Negotiable Certificates of Deposit 5 Years N/A No Limit
Local Agency Investment Fund N/A N/A No Limit
California Asset Management Program N/A N/A No Limit
Deposit Accounts N/A A No Limit
State or Local Bonds N/A A No Limit
Defeasance Securities N/A N/A No Limit
(a) At time of purchase.
(b) Guaranteed Investment Contracts must be fully collaterized with U.S. Treasury Obligations or U.S. Agency Obligations.
Maximum Percentage of
Portfolio
Guaranteed Investment Contracts (fully collateralized) (b)
Authorized Investment Type Minimum Credit Quality (a)
55
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 2 – CASH AND INVESTMENTS (Continued)
E. Fair Value Hierarchy
The following is a summary of the fair value hierarchy of the fair value of investments of the
City as of June 30, 2025:
(a)(b)(c)
Level 1 Level 2 Level 3 Total
City:
Money Market Funds $972,264 $972,264
U.S. Treasury Notes $12,473,566 5,546,263 18,019,829
Federal Agency Securities and Instruments 12,000,492 12,000,492
Medium-Term Corporate Notes 18,793,711 18,793,711
Investment in Pt. San Pedro Bonds $923,367 (d)923,367
$12,473,566 $37,312,730 $923,367 50,709,663
Investments Exempt from Fair Value Hierarchy:
Local Agency Investment Fund 65,659,129
Marin County Investment Pool 90,098
Total Investments 116,458,890
Cash in banks and on hand 8,668,771
Total City Cash and Investments 125,127,661
Fiduciary:
Cash in banks 288,528
Total Fiduciary Cash 288,528
Total City and Fiduciary Cash and Investments 125,416,189
San Rafael Sanitation District:
Marin County Investment Pool 41,982,433
41,982,433
Total Cash and Investments $167,398,622
Source: The above GASB 72 Classifications in the different input levels are provided by US Bank.
(a)
(b)
(c)
(d)This pertains to the City-owned bonds of its investments in Pt. San Pedro Special Assessment District that has no trading market and
is thus listed under Level 3. This bond is valued using discounted cash flow techniques.
District's Total Cash and Investments
Level 1 inputs are quoted prices in active market for identical assets. These are quoted prices in active markets for identical assets at
the measurement date. An active market for the asset is a market in which transactions for the asset occur with sufficient frequency
and volume to provide pricing information on an ongoing basis.
Level 2 inputs are significant other observable inputs. These inputs include: a) Quoted prices for similar assets in active markets;
b) Quoted prices for identical or similar assets in markets that are not active; and c) Inputs other than quoted prices that are
observable for an asset.
Level 3 inputs are significant unobservable inputs. These inputs shall be used to measure fair value to the extent that observable
inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset at the
measurement date.
56
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 2 – CASH AND INVESTMENTS (Continued)
F. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to changes in market interest rates. The City also manages its interest rate risk by holding
most investments to maturity, thus reversing unrealized market gains and losses.
Information about the sensitivity of the fair values of the City’s investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that
shows the distribution of the City’s investments by maturity or earliest call date:
12 Months More than
Type of Investment or Less 12 Months Total
City:
Money Market Funds $972,264 $972,264
Local Agency Investment Fund 65,659,129 65,659,129
Marin County Investment Pool 90,098 90,098
U.S. Treasury Notes 5,946,130 $12,073,699 18,019,829
Federal Agency Securities and Instruments 2,826,624 9,173,868 12,000,492
Medium-Term Corporate Notes 2,457,289 16,336,422 18,793,711
Investment in Pt. San Pedro Bonds 923,367 923,367
Total Investments $77,951,534 $38,507,356 116,458,890
Cash in banks and on hand 8,668,771
Total City Cash and Investments 125,127,661
Fiduciary:
Cash in banks 288,528
Total Fiduciary Cash 288,528
Total City and Fiduciary Cash and Investments 125,416,189
San Rafael Sanitation District:
Marin County Investment Pool 41,982,433
Total District's Cash and Investments 41,982,433
Total Cash and Investments $167,398,622
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The City reports its investment in LAIF at the fair value amount provided by LAIF,
which is the same as the value of the pool share. The balance is available for withdrawal on
demand and is based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per
month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75
million and at least 24 hours advance notice for withdrawals of $10 million or more.
57
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 2 – CASH AND INVESTMENTS (Continued)
Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-
backed securities, other asset-backed securities, loans to certain state funds, and floating rate
securities issued by federal agencies, government-sponsored enterprises, United States Treasury
Notes and Bills, and corporations. At June 30, 2025, these investments matured in an average of
248 days.
Money Market Mutual Funds are available for withdrawal on demand. The investment portfolio
of the Money Market Mutual Fund had an average maturity of 45 days at June 30, 2025.
The County’s investment pool is not registered with the Securities and Exchange Commission as
an investment company. The pool has a credit rating of “AAA/V1.” Investments made by the
Treasurer are regulated by the California Government Code and by the County’s investment
policy. The objectives of the policy are in order of priority, safety, liquidity, yield, and public
trust. The County has established a treasury oversight committee to monitor and review the
management of public funds maintained in the investment pool in accordance with Article 6
Section 27131 of the California Government Code. The oversight committee and the Board of
Supervisors review and approve the investment policy annually. The County Treasurer prepares
and submits a comprehensive investment report to the members of the oversight committee and
the investment pool participants every month. The report covers the types of investments in the
pool, maturity dates, par value, actual costs, and fair value.
G. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the actual rating as of June 30, 2025, for each of
the City’s or District’s investment types as provided by Standard and Poor’s or Moody’s
investment rating systems, except as noted:
Percentage
Amount of
Investments Invested Investments NRSRO Rating
City:
Money Market Funds $972,264 1% AAAm
Marin County Investment Pool 90,098 < 1% Aaa/AAA
U.S. Treasury Notes 18,019,829 15%AAA
Federal Agency Securities and Instruments 12,000,492 10%AAA
Medium-Term Corporate Notes 18,793,711 16% AAA,AA2,AA3,A1,A2,A3
Local Agency Investment Fund 65,659,129 56%Not Rated
Investment in Pt. San Pedro Bonds 923,367 1%Not Rated
Total City Investments 116,458,890
San Rafael Sanitation District:
Marin County Investment Pool 41,982,433 AAA/V1
Total Investments $158,441,323
H. Concentration Risk
There were no investments in the securities of any individual issuers, other than U.S. Treasury
securities, mutual funds, and external investment pools, that represent 5% or more of the total
entity–wide investments at June 30, 2025.
58
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 3 – INTER-FUND TRANSACTIONS
A. Transfers
Resources may be transferred from one City fund to another. Transfers routinely fund capital
projects or capital outlays, lease or debt service payments, and operating expenses.
Transfers between funds during the fiscal year ended June 30, 2025, were as follows:
From Fund To Fund Amount
General Fund Gas Tax Special Revenue Fund $1,250,000 (A)
Essential Facilities Capital Projects Fund 353,500 (B)
Non-Major Governmental Funds 5,155,000 (B) (C)
Internal Service Funds 3,500,000 (B)
Traffic and Housing Mitigation Fund Non-Major Governmental Funds 250,000 (C)
Gas Tax Special Revenue Fund General Fund 650,000 (C)
Non-Major Governmental Funds 110,000 (A)
Parking Services Enterprise Fund General Fund 477,993 (B)
Non-Major Governmental Funds 96,000 (B)
Internal Service Funds General Fund 680,313 (D)
Non-Major Governmental Funds 13,543 (B)
Non-Major Governmental Funds General Fund 151,129 (C)
$12,687,478
(A) Transfers for street maintenance support and administrative costs.
(B) Transfers for administrative costs, grant matching, recreation, and other program support.
(D) Transfers for debt service.
(C) Transfers for project support.
NOTE 4 – LOANS AND LEASES RECEIVABLE
A. Summary of Loans Receivable
The City has identified the portion of fund balance represented by these loans as nonspendable or
restricted as discussed in Note 8. As of June 30, 2025, these loans consisted of the following:
Employee Loans $399
Centertown Associates 944,751
3301 Kerner Loan 915,082
One "H" Street Associates 22,860
Vivalon Loan 1,816,825
Total $3,699,917
59
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
B. Employee Loans
The City administers a computer loan program that supports the use of technology by employees.
Employees are permitted to borrow up to $1,500 for the purchase of computer hardware and
software. The loans are interest-free, have maximum terms of one year, and are repaid through
automatic payroll deductions. As of June 30, 2025, the balance of the employee loans receivable
was $399.
C. Centertown Associates Loan
On August 20, 1990, the former Redevelopment Agency loaned Centertown Associates, Ltd,
$303,000 at 3% interest due semiannually for the construction of a 60-unit affordable apartment
complex and was fully secured by a deed of trust. With the dissolution of the Redevelopment
Agency effective February 1, 2012, the assets of the Agency’s Low and Moderate Income
Housing Fund, including the Centertown Associates loan, were assumed by the City’s Low and
Moderate Income Housing Special Revenue Fund. On October 22, 2021, City Council approved
the Amended and Restated Promissory Note for the loan. The amendment extended the due date
to October 22, 2078, for the original loan balance of $266,781 consisting of $219,982 in
remaining principal and $46,799 in accrued interest as of the date of the amended loan agreement.
In addition, the amendment included an additional loan in the amount of $643,095 for a ground
lease for certain land located at 855 C Street, currently improved with approximately sixty units
of affordable housing. Interest is compounded at 1.74% annually and is repayable from residual
receipts as defined under the agreement. Repayment is due on October 22, 2078. The amended
note is secured by a Leasehold Deed of Trust with Assignment of Rents and Security Agreement
on the Property. As of June 30, 2025, the balance of the loan including principal and accrued
interest was $944,751.
D.3301 Kerner Loan
On March 21, 2023, the City entered into a loan agreement in the amount of $857,500 to fund the
construction of a 41-unit multifamily rental housing development affordable to homeless or
formerly homeless households with mental illness at rents affordable to extremely low- and very
low- income households. The term is the later of (a) the fifty-seventh anniversary of the date the
Deed of Trust is recorded in the Recorder’s Office of Marin County or (b) the fifty-fifth
anniversary of the date on which construction financing is converted into permanent financing.
Annual payments equal to the City’s proportionate share of residual receipts attributable to the
prior calendar year are due beginning June 1st after the end of the calendar year of the date that
the construction loan for the property converts to a permanent loan. The note is secured by a Deed
of Trust. As of June 30, 2025, the balance of the loan and accrued interest was $915,082.
E.One “H” Street Associates Loan
On January 18, 1994, the City loaned One “H” Street Associates $100,000 at zero percent interest
with annual payments of $2,857 and the final payment is due January 18, 2033. As of June 30,
2025, the balance of this loan was $22,860.
60
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
F.Vivalon Loan
On April 1, 2022, the City entered into a loan agreement in the amount of $1,825,000 to fund
construction of the Vivalon Healthy Aging Center located at 999 3rd Street. The site includes 66
one-bedroom and studio units for older adults and approximately 20% of the units are supportive
housing. The construction financing was converted to permanent financing on October 28, 2024.
The term is the later of (a) the fifty-seventh anniversary of the date the Deed of Trust is recorded
in the Recorder’s Office of Marin County or (b) the fifty-fifth anniversary of the date on which
construction financing is converted into permanent financing. Annual payments equal to the
City’s proportionate share of residual receipts attributable to the prior calendar year are due
beginning June 1st after the end of the calendar year that the construction loan for the property
converts to a permanent loan. The loan was converted to a permanent loan on October 28, 2024.
The note is secured by a Deed of Trust. As of June 30, 2025, the balance of the loan and accrued
interest was $1,816,825.
G.Other Receivables – Long-Term Receivable from San Rafael Sanitation District
The City provides staffing to San Rafael Sanitation District (District) under a contractual
arrangement originated in 1987 that requires the District to pay all related employee costs
incurred by the City on its behalf. Accordingly, the cost of providing pension and post-
employment health benefits incurred by the City for the District staff but not yet funded are
reflected by the District as an obligation, and by the City as a noncurrent receivable. The
obligation as of June 30, 2025, is $2,023,239, and is composed of the following:
Defined benefit pension liability allocation $1,639,039
Other post-employment benefit liability allocation 384,200
Total long-term receivable from San Rafael Sanitation District $2,023,239
H. Leases Receivable
The City from to time to time engages in lease arrangements allowing the right for others to use
various owned land and buildings for the public benefit. As of June 30, 2025, these leases and
related deferred inflows of resources consisted of the following:
Deferred
Leases Inflows of
Receivable Resources
Marin History Museum $15,912 $14,033
Yacht Club 124,865 112,992
Trans Bay Cable 219,640 195,147
Total $360,417 $322,172
On August 1, 2021, the City began leasing a building to the Marin History Museum with monthly
payments of $1,200 - $1,260 through July 1, 2026. The City recognized $12,953 in lease revenue
and $1,176 in interest revenue during the current fiscal year related to this lease. Also, the City
has a deferred inflow of resources associated with this lease that will be recognized as revenue
over the lease term.
61
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 4 – LOANS AND LEASES RECEIVABLE (Continued)
On April 1, 2014, the City began leasing property to the San Rafael Yacht Club. The lease was
extended during fiscal year 2022 and lease payments are due annually with an initial amount of
$28,699 commencing March 31, 2022. Lease payments are to be increased by 5% every two
years thereafter, until the end of the lease on March 31, 2029. The City recognized $28,248 in
lease revenue and $3,011 in interest revenue during the current fiscal year related to this lease.
Also, the City has a deferred inflow of resources associated with this lease that will be recognized
as revenue over the lease term.
On January 1, 2007, the City began leasing land to a third party for a cable operation. Lease
payments are due annually with an initial amount of $33,500 commencing March 31, 2022. Lease
payments are to be increased by 3% every year thereafter, until the end of the lease on January 1,
2031. The City recognized $32,525 in lease revenue and $7,464 in interest revenue during the
current fiscal year related to this lease. Also, the City has a deferred inflow of resources
associated with this lease that will be recognized as revenue over the lease term.
NOTE 5 – CAPITAL ASSETS
Changes in capital assets during the fiscal year consisted of:
Balance Balance
June 30, 2024 Additions Retirements Transfers June 30, 2025
Governmental Activities
Capital assets not being depreciated:
Land $84,107,659 $84,107,659
Construction in progress 28,784,981 $13,070,903 ($66,058) ($9,923,914) 31,865,912
Total capital assets not being depreciated 112,892,640 13,070,903 (66,058)(9,923,914) 115,973,571
Capital assets being depreciated:
Land improvements 10,851,579 10,851,579
Buildings and structures 119,721,666 15,260 1,249,203 120,986,129
Machinery and equipment 23,444,726 2,474,687 (1,450,047)24,469,366
Infrastructure 264,924,783 443,003 8,674,711 274,042,497
Intangible right-to-use leased building 5,476,219 5,476,219
Intangible right-to-use leased equipment 1,226,361 (111,583)1,114,778
Intangible right-to-use subscription asset 3,252,382 54,652 (167,652)3,139,382
Total capital assets being depreciated 428,897,716 2,987,602 (1,729,282) 9,923,914 440,079,950
Less accumulated depreciation and amortization for:
Land improvements (8,754,187) (171,595)(8,925,782)
Buildings and structures (32,759,025) (2,821,371)(35,580,396)
Machinery and equipment (16,445,823) (1,370,099) 1,449,348 (16,366,574)
Infrastructure (162,748,302) (6,419,061)(169,167,363)
Intangible right-to-use leased building (469,390) (156,463)(625,853)
Intangible right-to-use leased equipment (308,915) (176,180) 111,583 (373,512)
Intangible right-to-use subscription asset (548,811) (401,436) 167,652 (782,595)
Total accumulated depreciation and amortization (222,034,453) (11,516,205) 1,728,583 (231,822,075)
Total net capital assets being depreciated and amortized 206,863,263 (8,528,603)(699) 9,923,914 208,257,875
Total governmental activity capital assets $319,755,903 $4,542,300 ($66,757)$324,231,446
62
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 5 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2024 Additions Retirements June 30, 2025
Business-type Activities
Capital assets not being depreciated:
Land $8,620,853 $8,620,853
Total capital assets not being depreciated 8,620,853 8,620,853
Capital assets being depreciated:
Buildings and structures 10,736,254 10,736,254
Machinery and equipment 968,100 968,100
Total capital assets being depreciated 11,704,354 11,704,354
Less accumulated depreciation for:
Buildings and structures (4,740,861) ($226,051)(4,966,912)
Machinery and equipment (841,533) (33,318)(874,851)
Total accumulated depreciation (5,582,394) (259,369)(5,841,763)
Total net capital assets being depreciated 6,121,960 (259,369)5,862,591
Total business-type activity capital assets $14,742,813 ($259,369)$14,483,444
Balance Balance
June 30, 2024 Additions Retirements Transfers June 30, 2025
San Rafael Sanitation District
Capital assets not being depreciated:
Land and easements $115,329 $115,329
Construction in progress 10,629,533 $15,490,695 ($14,430,846) 11,689,382
Total capital assets not being depreciated 10,744,862 15,490,695 (14,430,846) 11,804,711
Capital assets being depreciated:
Subsurface lines 50,648,903 117,270 14,275,892 65,042,065
Sewage collection facilities 47,568,274 ($178,133) 154,954 47,545,095
General plant and administration 2,153,320 (120,751)2,032,569
Total capital assets being depreciated 100,370,497 117,270 (298,884) 14,430,846 114,619,729
Less accumulated depreciation for:
Subsurface lines (15,329,319) (664,946)(15,994,265)
Sewage collection facilities (28,339,510) (1,652,611) 178,133 (29,813,988)
General plant and administration (1,718,429) (105,914) 120,751 (1,703,592)
Total accumulated depreciation (45,387,258) (2,423,471) 298,884 (47,511,845)
Total net capital assets being depreciated 54,983,239 (2,306,201)14,430,846 67,107,884
Total District's capital assets $65,728,101 $13,184,494 $78,912,595
Capital Asset Contributions – Some capital assets may have been acquired using Federal and State
grant funds, or were contributed by developers or other governments. These contributions are
accounted for as revenues at the time the capital assets are contributed.
63
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 5 – CAPITAL ASSETS (Continued)
Depreciation Allocation – Depreciation expense is charged to functions and programs based on
their usage of the related assets. The amounts allocated to each function or program are as
follows:
Governmental Activities
General government $254,894
Public safety 1,290,193
Public works and parks 7,485,295
Community development 34,860
Culture and recreation 681,012
Internal service funds 1,769,951
Total Governmental Activities $11,516,205
Business-type Activities
Parking services $259,369
Total Business-type Activities $259,369
NOTE 6 – LONG TERM DEBT
The City generally incurs long-term debt to finance projects or purchase assets which will have
useful lives equal to or greater than the related debt. A summary of governmental and business-
type activities long-term liabilities for the fiscal year ended June 30, 2025, are as follows:
Balance Balance Due Within
June 30, 2024 Additions Reductions June 30, 2025 One Year
Governmental Activities - Long-Term Debt:
Bonds $43,149,435 ($3,752,943)$39,396,492 $3,510,000
Direct Borrowings502,689(173,106)329,583 174,623
Total Governmental Activities - Long-Term Debt $43,652,124 ($3,926,049) $39,726,075 $3,684,623
Governmental Activities - Other Long-Term Liabilities:
Compensated Absences $4,434,492 $681,457 $5,115,949 $639,494
Net Pension Liability 96,649,584 (1,998,910)94,650,674
Net OPEB Liability 20,513,064 (2,653,035)17,860,029
Claims Payable 14,501,862 2,764,021 (2,476,984)14,788,899 3,666,214
Lease Liabilities 6,405,391 (180,733)6,224,658 169,137
Subscription Liabilities 2,418,280 (488,440)1,929,840 395,270
Total Governmental Activities - Other Long-Term
Liabilities $144,922,673 $3,445,478 ($7,798,102) $140,570,049 $4,870,115
Balance Balance Due Within
June 30, 2024 Additions Reductions June 30, 2025 One Year
Business-type Activities - Long-Term Debt:
Bonds $3,388,653 ($329,275)$3,059,378 $335,000
Total Business-type Activities - Long-Term Debt $3,388,653 ($329,275) $3,059,378 $335,000
Business-type Activities - Other Long-Term Liabilities:
Compensated Absences $138,659 $10,993 $149,652 $18,707
Net Pension Liability 2,722,631 ($433,891)2,288,740
Net OPEB Liability 336,936 (43,577)293,359
Total Business-type Activities - Other Long-Term
Liabilities $3,198,226 $10,993 ($477,468) $2,731,751 $18,707
64
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 6 – LONG-TERM DEBT (Continued)
A summary of governmental and business-type activities long-term bonds and notes payable for the
fiscal year ended June 30, 2025, are as follows:
Authorized Balance Balance Current
and Issued June 30, 2024 Retirements June 30, 2025 Portion
Governmental Activities Bonds:
2018 Authority Lease Revenue Bonds
4.00%-5.00%, due 6/1/2034 $45,485,000 $36,830,000 $2,645,000 $34,185,000 $2,870,000
Add: unamortized bond premium 5,079,435 507,943 4,571,492
2010 Taxable Pension Obligation Bonds
6.00%-6.25%, due 7/1/2025 4,490,000 1,240,000 600,000 640,000 640,000
Total Governmental Activities Bonds 43,149,435 3,752,943 39,396,492 3,510,000
Governmental Activities - Direct Borrowings:
PG & E CEC Efficiency Note Payable
1.00%, due 12/22/2026 1,104,799 381,226 151,351 229,875 152,868
PG & E Energy Efficient Lighting Project Note Payable
0.00% due 1/20/30 174,036 121,463 21,755 99,708 21,755
Total Governmental Activities - Direct Borrowings 502,689 173,106 329,583 174,623
Total Governmental Activities Debt $43,652,124 $3,926,049 $39,726,075 $3,684,623
Business-type Activities:
2012 Authority Lease Revenue Refunding Bonds
2.00-4.00%, due 4/1/2033 $6,750,000 $3,395,000 $330,000 $3,065,000 $335,000
Less: unamortized bond discount (6,347)(725)(5,622)
Total Business-type Activities Bonds 3,388,653 329,275 3,059,378 335,000
Total Business-type Activities $3,388,653 $329,275 $3,059,378 $335,000
A. 2018 Authority Lease Revenue Bonds
On March 5, 2018, the Authority issued 2018 Authority Lease Revenue Bonds in the amount of
$45,485,000 bearing interest at rates from 4.00% to 5.00%. The proceeds of the bonds were
provided for replacement of two fire stations and construction of a public safety center. The
Authority has pledged revenue pursuant to a site and facility lease between the City and the
Authority for the public safety center. The lease rental payments are due semi-annually and are in
an amount sufficient to make payments on the Bonds. Principal payments are due annually on
June 1 and interest is payable semiannually on June 1 and December 1. The Bonds maturing on or
prior to June 1, 2028, are not subject to optional redemption prior to their maturity. The Bonds
maturing on or after June 1, 2029, are subject to optional redemption as a whole or in part on any
date after June 1, 2028, at the option of the Authority, at a redemption price equal to the principal
amount of the Bonds subject to redemption, plus accrued interest to the date fixed for redemption,
without premium.
The Bonds are payable from any source of available funds of the City. The bond covenants
contain events of default that require the revenue of the City to be applied by the Trustee as
specified in the terms of the agreement if any of the following conditions occur: default on debt
service payments; the failure of the City to observe or perform the conditions, covenants, or
agreement terms of the debt; bankruptcy filing by the City; or if any court or competent
jurisdiction shall assume custody or control of the City.
65
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 6 – LONG-TERM DEBT (Continued)
B. 2010 Taxable Pension Obligation Bonds
On July 1, 2010, the City issued 2010 Taxable Pension Obligation Bonds in the amount of
$4,490,000 bearing interest at rates from 6.00% to 6.25%. Principal payments are due annually on
July 1 and interest is payable semiannually on January 1 and July 1. The Bonds were issued to
prefund a portion of the obligations of the City to the Marin County Employees’ Retirement
Association. Payment of the principal and interest on the Bonds is not limited to any special
source of funds and is payable from any legally available moneys of the City. The City is not
empowered or obligated to levy or pledge taxes to make payments on the Bonds. The bond
covenants contain events of default that require the revenue of the City to be applied by the
Trustee as specified in the terms of the agreement if any of the following conditions occur:
default on debt service payments; the failure of the City to observe or perform the conditions,
covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or
competent jurisdiction shall assume custody or control of the City.
C.Pacific Gas and Electric Notes Payable
PG&E CEC Efficiency
On September 5, 2017, City Council approved the execution of a note payable agreement with
PG&E in an amount up to $1,178,813, bearing interest at 1%. The debt was assumed as a means
to finance the execution of various energy efficiency system upgrades to City facilities and
streetlights. The upgrades included interior and exterior lighting upgrades and energy
management control systems. The City made the final draw on the loan and the final loan
obligation was $1,104,799. Payments commenced in December 2019 and are due semi-annually
until paid in full in December 2026.
PG&E Energy Efficient Lighting Project
On September 20, 2021, the City executed a note payable agreement with PG&E in the amount of
$174,036, which does not bear interest. The debt was assumed as a means of financing energy
efficient lighting for the Al Boro recreation center and the department of Public Works building.
Repayment of the loan commenced in February 2022 and payments are due monthly until paid in
full in January 2030.
66
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 6 – LONG-TERM DEBT (Continued)
D. 2012 Authority Lease Revenue Refunding Bonds
On August 7, 2012, the Authority issued 2012 Authority Lease Revenue Refunding Bonds in the
amount of $6,750,000 bearing interest at rates from 2.00% to 4.00%. The proceeds of the Series
2012 Bonds were used to repay the Authority’s 2003 Authority Lease Revenue Bonds that
financed the construction of the 3rd and C Street parking structure and achieved lower interest
rates and lower annual debt service payments. The refunding resulted in a net present value
savings to the City in debt service of $670,496. The Series 2012 Bonds are payable from lease
payments made by the City to the Authority for leasing the City facilities. The rights to these
lease payments have been irrevocably transferred by the Authority to the Trustee. Activities
related to the Series 2012 Bonds are reported in the Parking Services Enterprise Fund. Principal
payments are due annually on April 1 and interest is payable semiannually on October 1 and
April 1. The Bonds maturing on or prior to April 1, 2022, are not subject to optional redemption
prior to their maturity. The Bonds maturing on or after April 1, 2023, are subject to optional
redemption as a whole or in part on any date after April 1, 2022, at the option of the Authority, at
a redemption price equal to the principal amount of the Bonds subject to redemption, plus accrued
interest to the date fixed for redemption, without premium.
The Bonds are payable from any source of available funds of the City. The bond covenants
contain events of default that require the revenue of the City to be applied by the Trustee as
specified in the terms of the agreement if any of the following conditions occur: default on debt
service payments; the failure of the City to observe or perform the conditions, covenants, or
agreement terms of the debt; bankruptcy filing by the City; or if any court or competent
jurisdiction shall assume custody or control of the City.
67
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 6 – LONG-TERM DEBT (Continued)
E. Future Debt Service
Future debt service requirements, including interest, at June 30, 2025, are as follows:
Governmental Activities
For the Year Bonds Direct Borrowings
Ended June 30 Principal Interest Principal Interest
2026 $3,510,000 $1,729,256 $174,623 $1,919
2027 3,105,000 1,565,750 98,762 386
2028 3,355,000 1,410,500 21,755
2029 3,615,000 1,242,750 21,755
2030 3,895,000 1,062,000 12,688
2031-2034 17,345,000 2,149,250
Totals 34,825,000 $9,159,506 329,583 $2,305
Reconciliation of Long-term debt:
Add: unamortized premium 4,571,492
$39,396,492 $329,583
For the Year Bonds
Ended June 30 Principal Interest
2026 $335,000 $113,562
2027 350,000 102,256
2028 360,000 90,006
2029 375,000 77,406
2030 390,000 63,812
2031-2033 1,255,000 100,588
Totals $3,065,000 $547,630
Reconciliation of Long-term debt:
Less: unamortized discount ($5,622)
$3,059,378
Business-type Activities
NOTE 7 – DEBT WITHOUT CITY COMMITMENT
A.Special Assessment Debt Without City Commitment
Special assessment districts have been established in various parts of the City to provide
improvements to properties located in those districts. Properties in these districts are assessed for
the cost of improvements; these assessments are payable solely by property owners over the term
of the debt issued to finance these improvements. The City is not legally or morally obligated to
pay these debts or be the purchaser of last resort of any foreclosed properties in these special
assessment districts, nor is it obligated to advance City funds to repay these debts in the event of
default by any of these districts. The City does act as an agent for the property owners and
bondholders and at June 30, 2025, the balances of these Districts’ outstanding debt were as follows:
Project Original Outstanding
Description Amount June 30, 2025
Pt. San Pedro Road Median Landscaping Pt. San Pedro Road
Assessment District Limited Obligation Bonds-2012 Median Landscaping $1,750,000 $893,500
68
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 7 – DEBT WITHOUT CITY COMMITMENT
B. Conduit Debt
The City has assisted private-sector entities by sponsoring their issuance of debt for purposes the
City deems to be in the public interest. These debt issues are secured solely by the property
financed by the debt. The City is not legally or morally obligated to pay these debts or be the
purchaser of last resort of any foreclosed properties secured by these debts, nor is it obligated to
advance City funds to repay these debts in the event of default by any of these issuers. At June
30, 2025, the balance of this issuers’ outstanding debt was as follows:
Project Original Outstanding
Description Amount June 30, 2025
San Rafael Redevelopment Agency 162-175 Belvedere
Multifamily Housing Revenue Bonds-2000A Apartments $3,590,529 $665,144
California Statewide Communities
Development Authority Revenue Bonds-2001 St. Marks School 5,605,000 1,280,000
San Rafael Redevelopment Agency San Rafael Commons
Multifamily Housing Revenue Bonds-2002 Apartments 6,100,000 3,425,000
San Rafael Redevelopment Agency
Multifamily Housing Revenue Bonds-2007 Series A Martinelli House Project 6,000,000 1,475,459
Multifamily Housing Revenue Bonds-2007 Series B Martinelli House 1,000,000 60,467
Total $22,295,529 $6,906,070
NOTE 8 – NET POSITION AND FUND BALANCE
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows of resources over all its
liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three
captions. These captions apply only to Net Position, which is determined only at the Government-
wide level and business type activity and are described on the following page:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the
current net book value of the City’s capital assets, less the outstanding balance of any debt issued
to finance these assets.
Restricted describes the portion of Net Position which is restricted to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other
restrictions which the City cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted to use.
69
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
B. Fund Balance
In the fund financial statements, fund balances represent the net current assets of each fund. Net
current assets generally represent a fund’s cash and receivables, less its liabilities. The City’s
fund balances are classified in accordance with generally accepted accounting principles, which
require the City to classify its fund balances based on spending constraints imposed on the use of
resources. For programs with multiple funding sources, the City prioritizes and expends funds in
the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the
following hierarchy is ranked according to the degree of spending constraint:
Nonspendable represents balances set aside that do not represent available, spendable resources
even though they are a component of assets. Fund balances required to be maintained intact, such
as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, loans
receivable, and land held for redevelopment are included. However, if proceeds realized from the
sale or collection of nonspendable assets are restricted, committed or assigned, then
Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors,
laws, regulations, or enabling legislation which requires the resources to be used only for a
specific purpose. Nonspendable amounts subject to restrictions are included along with spendable
resources.
Committed fund balances have constraints imposed by resolution of the City Council which may
be altered only by resolution of the City Council. Nonspendable amounts subject to Council
commitments are included along with spendable resources.
Assigned fund balances are amounts constrained by the City’s intent that they be used for a
specific purpose, but are neither restricted nor committed. Intent is expressed by the City
Manager, as designated by the City Council, and may be changed at the discretion of the City
Council or City Manager. This authorization is given through Resolution No. 13173 which
adopted the City’s Fund Balance Policy.
This category includes nonspendables, when it is the City’s intent to use proceeds or collections
for a specific purpose; and residual fund balances, if any, of Special Revenue, Capital Projects
and Debt Service Funds which have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or
assigned. This includes the residual General Fund balance and residual fund deficits, if any, of
other governmental funds.
70
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
Detailed classifications of the City’s fund balances, as of June 30, 2025, are below (continued on
next page):
Capital Project Funds
General Fund
Traffic and
Housing
Mitigation Gas Tax
Essential Facilities
Capital Projects Fund
Other
Governmental
Funds Total
Fund balances:
Nonspendable:
Prepaids $70,759 $70,759
Total Nonspendable 70,759 70,759
Restricted:
Assessment District capital projects $306,452 306,452
Baypoint Lagoons Assessment District 238,736 238,736
Bedroom tax capital projects 158,515 158,515
Business Improvement District
Childcare 1,589,704 1,589,704
Development services 515,080 515,080
Emergency medical services 3,674,088 3,674,088
Gas tax $15,293,261 15,293,261
Grants 642,002 642,002
Household hazmat facility 55,251 55,251
Library 2,619,889 2,619,889
Library assessment 895,216 895,216
Loch Lomond Assessment District 883,515 883,515
Loch Lomond Assessment District #2 1,271,346 1,271,346
Low and Moderate Income Housing 2,023,720 2,023,720
Measure A - Open Space 971,575 971,575
Measure C - Wildfire Prevention 2,846,520 2,846,520
Measure E - Public Safety Facility $3,328,812 3,328,812
Measure G - Cannabis 889,625 889,625
Parkland dedication 380,990 380,990
Public safety 49,568 49,568
Pt. San Pedro- Maintenance Portion 279,879 279,879
Storm water 3,409,198 3,409,198
Traffic and housing mitigation $6,575,682 6,575,682
Total Restricted 6,575,682 15,293,261 3,328,812 23,700,869 48,898,624
Committed:
Capital improvement capital projects 4,648,913 4,648,913
Emergency reserves 10,125,000 10,125,000
Park capital projects 27,940 27,940
Total Committed 10,125,000 4,676,853 14,801,853
Assigned:
Contractual commitments 1,379,814 1,379,814
One-time funds allocated to projects 13,752,273 13,752,273
Infrastructure Reserve 1,000,000 1,000,000
General plan / long range planning 2,209,541 2,209,541
Open space capital projects 126,205 126,205
Total Assigned 18,341,628 126,205 18,467,833
Unassigned:
Economic uncertainty reserve 5,063,000 5,063,000
Unassigned fund balance 314,432 (70,059)244,373
Total Unassigned 5,377,432 (70,059) 5,307,373
Total Fund Balances $33,914,819 $6,575,682 $15,293,261 $3,328,812 $28,433,868 $87,546,442
Special Revenue Funds
71
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
C. Minimum Fund Balance Policy
The City Council adopted a General Fund Reserve Policy in June 2024 to establish target reserve
levels and the methodology for calculating reserve levels. The Policy also establishes criteria for
the use of reserves and a process to replenish reserves.
The Policy requires the City to strive to maintain the following fund balances:
1) Emergency and Cash Flow Reserve (15% minimum)
An emergency and cash flow reserve will be maintained for the purposes of (1) sustaining
General Fund operations in the case of a public emergency, such as a natural disaster or other
unforeseen catastrophic event (10%); and (2) to cover sudden operating shortfalls caused by
(a) a severe drop in revenues that cannot be sufficiently offset by a corresponding reduction
in expenditures and/or other available resources, or (b) an unforeseen, unavoidable
expenditure that must be paid from the General Fund (5%).
This reserve level is measured as a percentage of annual operating expenditures. Budgeted
operating expenditures are to be used for the purposes of budget allocations and projections,
and actual operating expenditures are to be used for the purpose of measuring this reserve at
fiscal year-end. This reserve may be expended only when the City Council determines by
resolution that such action is consistent with the purpose and intent of this policy.
In the event the balance in the Emergency and Cashflow Reserve falls below the minimum
level, the City Manager, shall recommend a plan to replenish the fund within a timeframe not
to exceed three years. This recommendation shall be approved by the City Council no later
than the time at which the next annual budget is adopted. Any variance from the stipulations
established within this policy shall require approval by the City Council along with a
statement of findings supporting the temporary or ongoing modification to this policy.
The required reserve was $15,188,000 at June 30, 2025, and the balance of the reserve,
included in the General Fund’s committed and unassigned fund balances were $10,125,000
and $5,063,000, respectively.
2) Other Facilities and Infrastructure
The purpose of the assigned infrastructure reserve is to accumulate funds to be used for the
purpose of non-public safety facility construction and major improvements (e.g., library,
administrative and non-safety buildings, streets, and the stormwater system). This was
$1,000,000 at June 30, 2025.
The General Plan/Long Range Planning reserve included in the General Fund’s assigned fund
balance was $2,209,541 at June 30, 2025, which is specifically assigned to the City’s General
Plan, a state required plan that must address eight topic areas – Neighborhoods, Community
Design, Economic Vitality, Infrastructure, Governance, Culture and Arts, Parks and
Recreation and Air and Water Quality.
72
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 8 – NET POSITION AND FUND BALANCE (Continued)
D. Net Position Deficit
At June 30, 2025, the Recreation Revolving Special Revenue Fund had a deficit net position of
$70,059 due to expenditure increases outpacing revenue growth. The City plans to evaluate the
performance of the fund through the first half of the following fiscal year and propose any
necessary augmentations at that time.
NOTE 9 – PENSION PLAN
A. Plan Description
The City’s defined benefit retirement plan is administered by the Marin County Employees’
Retirement Association (MCERA), a retirement system established in July 1950 and governed by
the California Constitution; the County Employees Retirement Law of 1937 (CERL or 1937 Act,
California government Code Section 31450 et seq.); the Public Employees’ Pension Reform Act
of 2013 (PEPRA, Government Code Section 7522); the provisions of California Government
Code Section 7500 et seq; and the bylaws, procedures, and policies adopted by MCERA’s Board
of Retirement. The Marin County Board of Supervisors may also adopt resolutions, as permitted
by the CERL and PEPRA, which may affect the benefits of MCERA members.
MCERA operates as a cost-sharing multiple employer defined benefit plan for the City and eight
other participating employers: County of Marin, Local Agency Formation Commission
(LAFCO), Marin City Community Services District, Marin County Superior Court,
Marin/Sonoma Mosquito and Vector Control District, Novato Fire Protection District, Southern
Marin Fire Protection District and Tamalpais Community Services District. Separate actuarial
valuations are performed for these other agencies and districts, and the responsibility for funding
their plans rest with those entities. Post-retirement benefits are administered by MCERA to
qualified retirees.
Copies of MCERA’s annual financial reports, which include required supplementary information
(RSI) for the plan may be obtained from their office at One McInnis Parkway, Suite 100, San
Rafael, CA 94903 or online at www.mcera.org.
B. Benefit Provisions
Service Retirement: MCERA’s service retirement benefits are based on the years of credited
service, final average compensation, and age at retirement, according to the applicable statutory
formula. Members who qualify for service retirement are entitled to receive monthly retirement
benefits for life.
General members hired prior to January 1, 2013, are eligible to retire once they attain the age of
50 (except Misc. Tier 2, whereby the minimum age is 55) and have acquired 10 or more years of
retirement service credit. A member with 30 years of service is eligible to retire regardless of age.
General members who are first hired on or after January 1, 2013, are eligible to retire once they
have attained the age of 52, and have acquired 5 years of retirement service credit, or age 70,
regardless of service.
73
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 – PENSION PLAN (Continued)
Safety members hired prior to January 1, 2013, are eligible to retire once they attain the age of 50
and have acquired 10 or more years of retirement service credit. A member with 20 years of
service is eligible to retire regardless of age. Safety members who are first hired on or after
January 1, 2013, are eligible to retire once they have attained the age of 50, and have acquired 5
years of retirement service credit, or age 70, regardless of service.
Disability Retirement: A member with five years of service, regardless of age, who becomes
permanently incapacitated for the performance of duty is eligible to apply for a non-service
connected disability retirement. Any member who becomes permanently incapacitated for the
performance of duty as a result of injury or disease arising out of and in the course of
employment is eligible to apply for a service-connected disability retirement, regardless of
service length or age.
Death Benefits: MCERA provides specified death benefits to beneficiaries and members’
survivors. The death benefits provided depend on whether the member is active or retired. The
basic active member death benefit consists of a members’ retirement contributions plus interest
plus one month’s pay for each full year of service (up to a maximum of six month’s pay).
Retiring members may choose from five retirement benefit payment options. Most retirees elect
to receive the unmodified allowance which provides the maximum benefit to the retiree and
continuance of 60% of the retiree’s allowance to the surviving spouse or registered domestic
partner after the retiree’s death. Other death benefits may be available based on the years of
service, marital status, and whether the member has minor children.
Cost of Living Adjustment: Retirement allowances are indexed for inflation. Most retirees receive
automatic basic cost of living adjustments (COLA’s) based upon the Urban Consumer Price Index
(UCPI) for the San Francisco Bay Area. These adjustments go into effect on April 1 of each year.
Annual COLA increases are statutorily capped at 2%, 3%, or 4% depending upon the member’s
retirement tier. When the UCPI exceeds the maximum statutory COLA for the member’s tier, the
difference is accumulated for use in future years when the UCPI is less than the maximum statutory
COLA. The accumulated percentage carryover is known as the COLA Bank.
C. Funding Policy
The funding policy of MCERA provides for actuarially determined periodic contributions by the
City at rates such that sufficient assets will be available to pay plan benefits when due. The
employer rates for normal cost are determined using the Entry Age Normal Actuarial Cost
Method, which takes into account those benefits that are expected to be earned in the future as
well as those already accrued.
74
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 – PENSION PLAN (Continued)
The City contribution rates for the year ended June 30, 2025 were as follows:
Employer Employee
Contribution Rate Contribution Rate Benefit Basis
City of San Rafael Misc Tier 1 46.80% 10.95% - 17.20% 2.7% @ 55 Highest year
City of San Rafael Misc Tier 2 46.45%7.83% -12.35% 2.0% @ 55 Average three highest years
City of San Rafael Fire Tier 1 73.41%14.23% -20.48% 3.0% @ 55 Highest year
City of San Rafael Fire Tier 2 72.57%12.59% -18.50% 3.0% @ 55 Average three highest years
City of San Rafael Safety Police Tier 1 72.89%14.23% -20.48% 3.0% @ 55 Highest year
City of San Rafael Safety Police Tier 2 74.17%12.59% -18.50% 3.0% @ 55 Average three highest years
PEPRA Misc 40.94% 9.65% 2.0% @ 62 Average three highest years
PEPRA Safety 64.07%15.75%2.7% @ 57 Average three highest years
These rates were determined by MCERA, based on the actuarial valuation dated June 30, 2023.
The actual rate of return on investments during that year was 7.0% on a market value basis net of
investment expenses, as compared to the prior year’s 6.75% assumption.
The City uses the actuarially determined percentages of payroll to calculate and pay contributions
to MCERA. Contributions to the plan from the City were $23,969,930 for the year ended June 30,
2025, based on a total payroll of $56,125,593, of which $41,605,711 represented the basis for the
plan contributions. Of the total payroll subject to plan contributions, $1,776,253 is attributable to
the San Rafael Sanitation District (SRSD), a component unit of the City.
Effective with the June 30, 2013, valuation, the Unfunded Actuarial Liability (UAL) as of June 30,
2013, is being amortized over a closed 17-year period (7 years remaining as of June 30, 2023),
except for the additional UAL attributable to the outstanding unfunded actuarial loss from 2009,
which is being amortized over a separate closed period (currently 15 years as of June 30, 2023).
Effective with the June 30, 2014 valuation, any new sources of UAL due to actuarial gains and
losses or method changes are amortized over a closed 24-year period, with a 5-year ramp up
period at the beginning of the period, a 4-year ramp down at the end of the period, and 15 years of
level payments as a percentage of payroll between the ramping periods. This amortization method
for gains and losses is similar to a 20-year amortization period with level payments as a
percentage of payroll, in conjunction with a traditional 5-year asset smoothing.
Assumption changes are amortized over a closed 22-year period, with a 3-year ramp up period, 2-
year ramp down period, and 17 years of level payments as a percentage of payroll.
D. Pension Liability and Pension Expense
The City’s net pension liability (NPL) has been determined for the financial reporting period
ended June 30, 2025, based on the following methodology: The City’s NPL as of June 30, 2023,
was updated to the measurement date of June 30, 2024 using the actual City’s plan assets as of
June 30, 2024, and estimating the change in the City’s liabilities between July 1, 2023, and June
30, 2024. This estimate is based on a projection of the City’s long-term contributions to the
pension plan relative to the projected contributions of all participating employers.
The resulting NPL for the City under this calculation is $96,939,414 or 39.52% of the total
MCERA NPL of $245,301,971 (reference MCERA’s GASB 67/68 report as of June 30, 2024).
This compares to the previous year’s net pension liability of $99,372,216 or 34.41% of the total
MCERA net pension liability of $288,821,503 (reference MCERA’s GASB 67/68 report as of
June 30, 2023).
75
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 – PENSION PLAN (Continued)
In addition to the reporting of the NPL as of June 30, 2025, the City reported deferred inflows of
$20,544,742 and deferred outflows of $67,271,340 as of the measurement date June 30, 2024.
The City reported post-measurement date outflows of $23,969,930 from actual fiscal year 2024-
2025 pension contributions. Deferred outflows include deferred investment gains and adjustments
to assumptions based on actual positive results. Deferred outflows have a positive impact on net
assets (offsetting the net pension liability) and will be recognized in future reporting periods.
Deferred inflows include deferred investment losses, adjustments to assumptions based on actual
negative results, and contributions made after the measurement date.
Deferred inflows have a negative impact on net assets (similar to the NPL) and will be recognized
in future reporting periods. The net impact of these pension liability related entries on the City’s
Statement of Net Position before allocations to the San Rafael Sanitation District was
$50,212,816. After allocations to the San Rafael Sanitation District, the net impact on the City’s
Statement of Net Position was $48,573,777.
Under generally accepted accounting principles, the City’s pension expense is based on the Plan’s
pension expense, adjusted for the City’s actual contributions and net pension liability (asset).
Three components are used to calculate pension expense: (1) changes in the net pension liability;
(2) changes in benefit terms (if any): and (3) changes in actuarial assumptions and experience.
Pension expense is calculated using a different methodology than that used to derive the
actuarially determined annual contribution to the Plan. Actual pension contributions during the
reporting year were $23,969,930. Because pension expense is affected by annual changes in the
net pension liability, volatility is to be expected.
The table below provides a summary of the key results during the reporting period:
Measurement Date Measurement Date
Description 6/30/2024 6/30/2023
Net Pension Liability $96,939,414 $99,372,215
Deferred Inflows 20,544,742 17,618,473
Deferred Outflows (43,301,410) (38,735,090)
Impact on Net Position before Deferred Outflows from Contributions 74,182,746 78,255,598
Additional Deferred Outflows - Contributions Subsequent to Measurement Date (23,969,930) (21,474,137)
Impact on Statement of Net Position before Allocations 50,212,816 56,781,461
Allocation of Net Pension Liability to SRSD 3,142,745 3,351,534
Allocation of Deferred Inflows (measurement date) to SRSD 666,054 594,219
Allocation of Deferred Outflows (measurement date) to SRSD (1,403,818) (1,306,420)
Impact on Net Position before Allocation of Deferred Outflows
from Contributions to SRSD 2,404,981 2,639,333
Allocation of Additional Deferred Outflows (Contributions) to SRSD (765,942) (625,953)
Long-Term Receivable from SRSD, due to pension obligations (see Note 4G)1,639,039 2,013,380
Impact on Statement of Net Position, net of receivable from SRSD $48,573,777 $54,768,081
Pension Expense $17,355,907 $16,240,173
Summary of Results
76
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 – PENSION PLAN (Continued)
Projection of Total Pension Liability and Net Pension Liability
Total Pension Liability (TPL) is the actuarial present value of projected benefit payments
attributed to past periods of employee service. MCERA and the City have adopted a measurement
date of June 30, 2024. The beginning of year measurement of TPL is based on the actuarial
valuation as of June 30, 2023. The TPL at the end of the measurement year, June 30, 2024, is also
measured as of the valuation date of June 30, 2023 and projected to June 30, 2024.
The Plan Fiduciary Net Position (FNP) is the fair or market value of assets. The FNP at the
beginning of the year is based on the actuarial valuation as of June 30, 2023. The FNP at the end
of the measurement year, June 30, 2024, is also measured as of the valuation date of
June 30, 2023, and projected to June 30, 2024.
The Net Pension Liability (NPL) is the City’s liability (asset) for benefits provided through its defined
benefit plan administered by MCERA. It is calculated by reducing the TPL by the FNP. The long-
term portion of the governmental activities’ NPL is liquidated primarily by the General Fund.
Actuarial assumptions:
The total pension liability as of June 30, 2024 (measurement date) was determined by an actuarial
valuation as of June 30, 2023, using the following actuarial assumptions applied to all prior
periods included in the measurement.
Expected Return on Assets 6.75% per year, net of investment expenses
Discount Rate 6.75% per year
Price Inflation 2.50% per year
Salary Increases 3.00% per year plus merit component based on employee
classification and years of service.
Administrative Expenses Administrative expenses in the actuarial valuation are assumed to be
$5,423,947 for FY 2023-24, to be split between employees and
employers based on their share of the overall contributions.
Administrative expenses shown in this report are based on the actual
FY 2023-24 amounts.
Post-Retirement COLA Post-retirement COLAs are assumed at a rate of 2.5% for members
with a 4% COLA cap, 2.4% for members with a 3% COLA cap, and
1.9% for members with a 2% COLA cap.
Mortality Rates for Mortality rates for Miscellaneous active members are based on the
Healthy Members sex distinct Public General 2010 Employee Mortality Table, with
and Inactives generational mortality improvements projected from 2010 using
Projection Scale MP-2020, with no adjustments.
Mortality rates for Safety active members are based on the sex
distinct Public Safety 2010 Above-Median Income Employee
Mortality Table, with generational mortality improvements
Projected from 2010 using Projection Scale MP-2020, with no
adjustments. 10% of Safety member active deaths are assumed to
occur in the line of duty.
77
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 – PENSION PLAN (Continued)
Mortality Rates for Rates of mortality for Miscellaneous disabled members are based
Retired Disabled on the sex distinct Public General 2010 Disabled Retiree Mortality
Members Table, with generational mortality improvements projected from
2010 using Projection Scale MP-2020, adjusted by 95% for females
and males.
Rates of mortality for Safety disabled members are based on the
sex distinct Public Safety 2010 Disabled Retiree Mortality Table,
with generational mortality improvements projected from 2010
using Projection Scale MP-2020, adjusted by 95% for males with
no adjustment for females.
Asset Allocation Policy and Expected Long-Term Rate of Return by Asset Class
The Board of Retirement has adopted an Investment Policy Statement (IPS), which provides the
framework for the management of MCERA’s investments. The IPS establishes MCERA’s
investment objectives and defines the principal duties of the Retirement Board, the custodian bank,
and the investment managers. The asset allocation plan is an integral part of the IPS and is designed
to provide an optimum and diversified mix of asset classes with return expectations to satisfy
expected liabilities while minimizing risk exposure. MCERA currently employs external investment
managers to manage its assets subject to the provisions of the policy. Plan assets are managed on a
total return basis with a long term objective of achieving and maintaining a fully funded status for
the benefits provided through the Plan.
The following was the Retirement Board’s adopted asset allocation policy as of June 30, 2024:
Long-Term
Expected Rate
Target Long-Term Expected of Return
Asset Class Allocation Real Rate of Return (with the effect of inflation)
Domestic Equity 32% 5.15% 7.65%
International Equity 22% 5.15% 7.65%
Fixed Income 23% 2.75% 5.25%
Real Assets 15% 4.10% 6.60%
Private Equity 8% 6.25% 8.75%
Total 100%
The Long-Term returns are calculated using a 10-year geometric return derived from arithmetic
returns and the associated risk (standard deviation).
78
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 – PENSION PLAN (Continued)
Determination of Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. Related to the discount
rate is the funding assumption that employees will continue to contribute to the plan at the required
rates and employers will continue the historical and legally required practice of contributing to the
plan based on an actuarially determined contribution, reflecting a payment equal to annual normal
cost, a portion of the expected administrative expenses, an amortization payment for the
extraordinary losses from 2009 amortized over a closed period (15 years remaining as of the June
30, 2023 actuarial valuation), and an amount necessary to amortize the remaining Unfunded
Actuarial Liability as a level percentage of payroll over a closed period (7 years remaining as of the
June 30, 2023 actuarial valuation).
A change in the discount rate would affect the measurement of the TPL. A lower discount rate
results in a higher TPL whereas a higher discount rate results in a lower TPL. Because the discount
rate does not affect the measurement of assets, the percentage change in the NPL can be significant
for a relatively small change in the discount rate.
The table below shows the sensitivity of the Net Pension Liability (Asset) to a one percent decrease
and a one percent increase in the discount rate:
1%Discount 1%
Decrease Rate Increase
Description 5.75%6.75%7.75%
Total Pension Liability $1,595,727,520 $1,416,561,207 $1,268,591,434
Fiduciary Net Position 1,319,621,793 1,319,621,793 1,319,621,793
Net Pension Liability (Asset)$276,105,727 $96,939,414 ($51,030,359)
82.7%93.2%104.0%
Fiduciary Net Position as a
Percentage of the Total Pension Liability
Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Pension
Resources
The impact of experience gains or losses and assumption changes on the Total Pension Liability
(TPL) are recognized in the proportionate share of the pension expense over the average expected
remaining service life of all active and inactive members of the plan. As of the measurement date,
this recognition period was 4 years.
79
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 9 – PENSION PLAN (Continued)
The following tables show the current balance and sources of deferred outflows and inflows related
to the City’s defined benefit retirement plan, and the scheduled recognition of these deferred
amounts:
Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Differences between expected and actual experience $17,242,882 $1,705,552
Changes in assumptions 3,792,683
Change in proportion 11,158,146
Difference between City contributions and proportionate
share of contributions 15,046,507
Actual FY 24-25 contributions (post measurement date)23,969,930
Net difference between projected and actual earnings
on pension plan investments 14,900,382
Deferred Inflows and Outflows Before Allocations $67,271,340 $20,544,742
Allocation of Deferred Inflows and Outflows to SRSD
As of measurement date $1,403,818 $666,054
Post-measurement date 765,942
Net Deferred Inflows and Outflows $65,101,580 $19,878,688
The $23,969,930 reported as deferred outflows of resources related to contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year ended
June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized as pension expense as follows:
Amortization
Year ended June 30 Amount
2026 ($11,801,826)
2027 40,729,238
2028 (1,485,441)
2029 (4,685,303)
Total $22,756,668
NOTE 10 – PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLAN)
The City contributes to the Public Agency Retirement System (PARS), which administers 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 accounts are determined instead of specifying the amount of
benefits the individual is to receive. The benefits a participant will receive depend on the amount
contributed to the participant’s account, and the returns earned on investments on those
contributions. The Plan’s trust administrator is Phase II, P.O. Box 12919, Newport Beach,
California 92658.
80
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 10 – PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION
RETIREMENT PLAN) (Continued)
As established by the plan, all eligible part-time and temporary employees of the City become
participants in the plan from the date that 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.
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. Contributions made by an
employee and the employer vest immediately.
During the year, the City and employees each contributed $137,362. The total covered payroll of
employees participating in the plan for the year ended June 30, 2025, was $3,662,987
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS
Plan Description
The City provides certain health care benefits for retired employees and their spouses under an
Agent Multiple-Employer Defined Benefit Plan. The benefit provisions were established under the
authority of the 1937 Act, Section 31450, et. seq. of the Government Code. Employees who meet
the vesting criteria become eligible for these benefits if they receive a retirement benefit from the
Marin County Employees’ Retirement Association within 120 days of retirement from City
employment.
The provisions and benefits of the City’s Other Post Employment Benefit Plan, in effect at June 30,
2025, are summarized as follows:
Elected Officials, Mid-Management, & Unrepresented
Management All other Bargaining Units
Eligibility
-CLASSIC
- Age 50 (age 55 if hired > 7/1/11) with 10 years services (Including reciprocity) OR
-
-Age 70
-PEPRA
- Age 50 (age 52 for Miscellaneous) with 5 years of service (including reciprocity ) OR
-Age 70
- Disability Retirement
Benefit Hired < 1/1/09 Full premium/cap Hired < 1/1/10 Up to cap
Hired ≥ 1/1/09 PEMHCA Min Hired ≥ 1/1/10 PEMHCA Min
Surviving Spouse
Benefit Continuation to surviving spouse
Medicare Part B Hired < 4/1/07 Full reimbursement None
Hired ≥ 4/1/07 None
Other No Dental, Vision, or Life Benefits
Retire directly from the City:
30 years service (Miscellaneous), 20 years service (Safety) OR
81
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Membership in the plan consisted of the following at June 30, 2024, the measurement date:
Active plan members 350
Inactive employees or beneficiaries currently
receiving benefit payments 375
Inactive employees entitled to but not yet
receiving benefit payments 82
Total 807
Funding Policy and Actuarial Assumptions
The City’s net OPEB liability was measured using a Total OPEB Liability and Fiduciary Net
Position measured as of June 30, 2024, using an actuarial valuation as of June 30, 2023. The
following actuarial assumptions were used in the valuation: (a) 6.25% investment rate of return and
(b) 2.50% of general inflation increase, and (c) a healthcare trend of declining annual increases
ranging from 8.50% for 2025 to 3.45% for the years starting 2076. In addition, the fixed dollar
benefit amounts are assumed to be held flat in the future and the premium related benefits are
assumed to increase with the healthcare trend rate.
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period July 1, 2022 through June 30, 2023.
The long-term expected rate of return on OPEB plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rates of return (expected returns,
net of OPEB plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term expected rate of return by weighing the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class
are summarized in the following table:
Long-Term
Expected
Long-Term Rate of Return
Target Expected (with the effect
Asset Class Allocation Real Rate of Return of inflation)
Public Equity 49% 4.56% 7.06%
Fixed Income 23% 1.56% 4.06%
TIPS 5% -0.08% 2.42%
Commodities 3% 1.22% 3.72%
REITs 20% 4.06% 6.56%
Total 100%
Assumed Long-Term Rate of Inflation 2.50%
Assumed Long-Term Investment Expenses n/a
Expected Long-Term Net Rate of Return 6.25%
Discount Rate 6.25%
The Expected Long-Term Rate of Return is provided by CERBT – Strategy 1.
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows
used to determine the discount rate assumed that City contributions will be made at rates equal to
the actuarially determined contribution rates. Based on these assumptions, the OPEB plan's
fiduciary net position was projected to be sufficient to make projected benefit payments and the
plan assets are expected to be invested using the strategy to achieve the expected return.
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a)(b)(c) = (a) - (b)
Balance at June 30, 2024 (6/30/23 measurement date)$47,839,000 $26,989,000 $20,850,000
Changes Recognized for the Measurement Period:
Service Cost 575,631 575,631
Interest on the total OPEB liability 2,924,665 2,924,665
Contributions from the employer 3,251,000 (3,251,000)
Net investment income 2,965,706 (2,965,706)
Administrative expenses (19,798) 19,798
Benefit payments and refunds (3,240,000) (3,240,000)
Net Changes during July 1, 2024 to June 30, 2025 260,296 2,956,908 (2,696,612)
Balance at June 30, 2025 (6/30/24 measurement date)$48,099,296 $29,945,908 $18,153,388
Increase (Decrease)
The benefit payments and refunds include implied subsidy benefit payments in the amount of
$649,000.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City, as well as what the City's net OPEB
liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.25
percent) or 1-percentage-point higher (7.25 percent) than the current discount rate:
Discount Rate -1% Current Discount Discount Rate +1%
(5.25%) Rate (6.25%) (7.25%)
$23,336,034 $18,153,388 $13,762,508
Plan's Net OPEB Liability/(Asset)
83
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability of the City, as well as what the City’s net OPEB
liability would be if it were calculated using healthcare trend rates that are 1-percentage-point
lower or 1-percentage-point higher than the current rates.
Healthcare Cost
Trend Rate -1% Trend Rates Trend Rate +1%
$14,984,405 $18,153,388 $21,951,283
Plan's Net OPEB Liability/(Asset)
Detailed information about the OPEB plan’s fiduciary net position is available in the separately
issued plan financial report. That report may be obtained from the California Public Employees’
Retirement System, CERBT, P.O. Box 942703, Sacramento, CA, 94229.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
related to OPEB
Components of OPEB Expense for fiscal year 2024-2025 were as follows:
Service Cost $575,631
Interest on Total OPEB Liability 2,924,665
Projected earning on investments (1,686,538)
Administrative expense 19,798
Recognition of deferred outflows/inflows:
Experience (1,666,000)
Assumptions 479,000
Asset Returns 70,166
OPEB Expense $716,722
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Components of deferred outflows of resources and deferred inflows of resources related to OPEB at
June 30, 2025 were as follows:
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Changes of assumptions $2,333,669 $38,331 $2,372,000
Net difference between projected and
actual earnings on plan investments 289,904 4,762 294,666
Employer contributions made subsequent
to the measurement date 3,314,124 54,436 3,368,560
Total deferred outflows of resources $5,937,697 $97,529 $6,035,226
Deferred inflows of resources:
Differences between expected and actual
experience $3,383,426 $55,574 $3,439,000
Total deferred inflows of resources $3,383,426 $55,574 $3,439,000
The difference between projected OPEB plan investment earnings and actual earnings is amortized
over a five-year period. The remaining gains and losses are amortized over the expected average
remaining service life.
$3,368,560 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30,
2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized as future OPEB expense as follows:
Amortized
Year Ended June 30 Amount
2026 ($460,834)
2027 539,166
2028 (429,834)
2029 (420,832)
($772,334)
85
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The table below provides a summary of the key results during this reporting period.
Measurement Date Measurement Date
Description June 30, 2024 June 30, 2023
Net OPEB Liability $18,153,388 $20,850,000
Deferred Inflows 3,439,000 5,480,000
Deferred Outflows (2,666,666) (4,870,000)
Impact on Net Position before deferred contributions 18,925,722 21,460,000
Additional Deferred Outflows - Contributions subsequent to measurement date (3,368,560) (3,251,000)
Impact on Statement of Net Position before Allocations 15,557,162 18,209,000
Allocation of NOL to SRSD 448,316 514,912
Allocation of Deferred Inflows (measurement date) to SRSD 84,930 135,334
Allocation of Deferred Outflows (measurement date) to SRSD (65,856) (120,270)
Impact on Net Position before deferred contributions to SRSD 467,390 529,976
Allocation of Additional Deferred Outflows (contributions) to SRSD (83,190) (80,287)
Long-Term Receivable from SRSD, due to OPEB obligations (see Note 4G) 384,200 449,689
Impact on Statement of Net Positions, net of receivable from SRSD $15,172,962 $17,759,311
OPEB Expense $716,722 $943,000
Covered Employee Payroll $45,758,000 $43,603,000
Summary of Results
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS
The City participates in the jointly governed organizations discussed below 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 Agreements 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. Each joint organization is governed by a board consisting of representatives from member
municipalities. Each board controls the operations of the respective joint organization, including
selection of management and approval of operating budgets, independent of any influence by
member municipalities beyond their representation on that board. Obligations and liabilities of this
joint organization are not the City’s responsibility and the City does not have an equity interest in
the assets of each joint organization except upon dissolution of the joint organization.
86
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
A. The Marin County Integrated On-Line Library System (System)
The MARINet Library Consortium was formed to provide for the procurement, ownership,
operation, maintenance, and governance of shared library services among the libraries, public and
academic, in Marin County. Current services shared and paid for on a consortia level through
annual membership dues include an integrated library system including patron database,
cataloging system, and online catalog of materials; delivery of items between libraries in Marin, a
statewide library delivery service called Link+, numerous online resources, and more. 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 annual operating costs was $342,511 for the year
ended June 30, 2025. Financial statements of the System can be obtained from the County
Librarian, Marin County Free Library at 1401 Los Gamos Drive, Suite 200, San Rafael,
California 94903.
B. The Marin General Services Authority (MGSA)
The MGSA was formed by the County of Marin and twelve local agencies to acquire street light
facilities, operate the facilities during an eminent domain action against PG&E, and coordinate
the subsequent transfer of the facilities to the individual local agencies. Each of the local agency’s
share of contributions was based on the number of streetlights to be acquired in the local agency’s
individual jurisdiction in relation to the total number of streetlights to be acquired by the Marin
Streetlight Acquisition Joint Powers Authority. MGSA services now include street light
maintenance, abandoned vehicle abatement, taxicab regulation, administrative responsibility for
MarinMap and the CATV program formerly administered by the Marin Telecommunications
Authority established to regulate the rates for cable television service and equipment. The City’s
contribution to MGSA was $914,680 for the year ended June 30, 2025. Financial statements of
the MGSA can be obtained at 900 Fifth Avenue, Suite 100, San Rafael, California 94901.
C. The Marin Emergency Radio Authority (MERA)
MERA was formed on February 28, 1998, by the County of Marin and 25 local agencies within
the County to plan, finance, implement, manage, own, and operate a County-wide public safety
and emergency radio system. The Governing Board consists of one representative from each
member. The members entered into a Project Operating Agreement on February 1, 1999.
On February 1, 1999, the members entered into an Operating Agreement whereby members are
obligated to contribute service payments to cover the Authority’s operations and debt service. The
City’s portion of the obligation is 16.913%. The City contributed $513,918 of the Authority’s
operations and debt service for the fiscal year ended June 30, 2025. The City has established a
reserve in its internal service funds to pay future service payments. Financial statements of the
MERA can be obtained at 95 Rowland Way, Novato, California 94945.
87
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 12 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
D. The Marin County Hazardous and Solid Waste Joint Powers Authority
The 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. The City’s
contribution to the Authority was $20,664 for the year ended June 30, 2025. Financial statements
of the Authority can be obtained at 3501 Civic Center Drive, San Rafael, California 94903.
E. Central Marin Sanitation Agency (CMSA)
In October 1979, the District entered into a joint powers agreement with three neighboring
sanitation agencies in central Marin County forming the Central Marin Sanitation Agency
(CMSA). CMSA serves as a regional wastewater treatment plant for its four member agencies
and San Quentin Prison (SQ) and is governed by a five-member Board of Commissioners, two
appointed by the Board of Directors of the District, two appointed by the governing board of the
Ross Valley Sanitary District, and one appointed by the governing board of Sanitary District No. 2
(SD 2).
Total project costs for the joint venture were funded from federal (75%) and state (12.5%) clean
water grants and from local shares (12.5% total) allocated among the member agencies and SQ
based upon the weighted average of the strength and volume of sewage flows per member at
inception of the project. CMSA derives its annual funding for its operations and capital programs
almost exclusively from service charges to member agencies. The joint powers agreement does
not provide an explicit measurable right as required to establish an equity interest for any of the
joint venture participants, and in addition to, stipulates that all excess capital funds, if any, and all
excess administration, operations, and maintenance funds from whatever source, if any, are the
property of CMSA.
The financial statements of the CMSA are available at the CMSA office at 1301 Anderson Drive,
San Rafael, California 94901 and online at www.cmsa.us.
NOTE 13 – RISK MANAGEMENT
A. City
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 established the
Risk Management Internal Service Fund to account for and finance its uninsured risks of loss.
The City manages risk by participating in a public entity risk pool (described below), purchasing
insurance and by retaining certain risks.
88
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 13 – RISK MANAGEMENT (Continued)
Risk Coverage
Liability Coverage
The City is a member of the California Joint Powers Risk Management Authority (CJPRMA)
which covers general liability claims up to $40,000,000. The purpose of CJPRMA is to spread the
adverse effects of general liability losses among the member agencies. The City also purchases
commercial insurance for property damage claims with an insured amount of $215,117,500. The
City is self-insured up to $750,000 for each general liability claim and $25,000 for each property
damage claim. Once the self-insured retention is met, CJPRMA becomes responsible for payment
of all liability claims up to the limit. The City contributed a total of $2,131,195 in liability
coverage premiums during the fiscal year ended June 30, 2025. Five years after settlement of all
general liability claims for a program year, CJPRMA will retroactively adjust premium deposits
for any excess or deficiency in deposits related to paid claims and reserves. Financial statements
for the risk pool may be obtained from CJPRMA at 3201 Doolan Road, Suite 285, Livermore,
California 94551.
Workers’ Compensation Coverage
The City purchases insurance for workers’ compensation through Safety National Casualty
Corporation Excess Workers’ Compensation and Employers Liability Insurance with coverage up
to statutory limits. The City is self-insured up to $1,000,000 for each worker’s compensation
claim.
Insurance Internal Service Funds and Financial Reporting
The City records estimated liabilities for claims filed up to the amounts for which it retains risk in
the General Liability and Workers Compensation Internal Service Funds. Charges to the General
Fund and other funds are based on relative general liability and workers compensation risk
associated with the activities of each fund. Charges are recorded in the funds as expenditures or
expenses and as revenues in the respective internal service funds.
Generally accepted accounting principles require municipalities to record the liability for
uninsured claims and to reflect the current portion of this liability as an expenditure in the
financial statements. As discussed above, the City has coverage for such claims, but it has
retained the risk for the deductible or uninsured portion of these claims.
The City’s liability for uninsured general liability claims and workers’ compensation claims,
including claims incurred but not reported, are reported in the Statements of Net Position. The
City’s present value liability for uninsured claims below include a provision for claims incurred
but not reported using a discount rate of 2%.
89
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 13 – RISK MANAGEMENT (Continued)
General Workers'Totals, as of June 30
Liability * Compensation * 2025 2024
Balance, beginning of year $3,340,771 $11,161,091 $14,501,862 $15,786,698
Current year claims and changes
in estimates 935,939 1,828,082 2,764,021 2,318,043
Claims paid (872,123)(1,604,861) (2,476,984) (3,602,879)
Balance, end of year $3,404,587 $11,384,312 $14,788,899 $14,501,862
Due in one year $1,277,825 $2,388,389 $3,666,214 $3,389,162
Due in more than one year 2,126,762 8,995,923 11,122,685 11,112,700
Total claim liabilities $3,404,587 $11,384,312 $14,788,899 $14,501,862
* Liability based on an actuarial valuation as of December 31, 2023, extrapolated to June 30, 2025.
The claims settlements have not exceeded insurance coverage for the past three years.
B. District
The District 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 disaster. The District
participates in a joint powers agreement with other entities forming the California Sanitation Risk
Management Authority (CSRMA), a public entity risk pool operating as a common risk
management and insurance program for 60 member entities. CSRMA is governed by a Board of
Directors composed of one representative from each member agency and meets three times per
year in conjunction with conferences of the California Association of Sanitation Agencies. The
Board controls the Note 1 operations of CSRMA, including selection of management and
approval of operating budgets, independent of any influence by member entities.
The District pays annual premiums to CSRMA for its primary insurance and property insurance
programs. Primary and property insurance programs are fully insured wherein CSRMA
purchases insurance as a group thereby reducing its costs. CSRMA provides both fully insured
and pooled insurance programs for its participating member entities. Because all employees of
the District are contracted employees from the City of San Rafael, workers’ compensation
insurance is not carried by the District but is provided through the City.
CSRMA’s primary and property insurance programs transfer risk to commercial insurance
policies for claims above deductibles, while the District retains risk for claims to the extent of
deductibles. Settled claims for the District have not exceeded coverage provided by CSRMA in
any of the past three fiscal years.
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 13 – RISK MANAGEMENT (Continued)
The following summarizes active insurance policies as of June 30, 2025 together with coverage
limits for each insured event:
Insurance Program Limits Coverage Description
CSRMA - Midvale Indemnity.$3,000,000 Gen/Mgt liability - aggregate
CSRMA - Midvale Indemnity.$1,000,000 Gen/Mgt liability - occurrence
CSRMA - Midvale Indemnity.$1,000,000 Auto liability - accident
CSRMA - Midvale Indemnity.$4,000,000 Excess liability
CSRMA - Berkshire Hathaway $89,758,041 Alliant property
CSRMA - Interstate Fire & Cas. $25,000,000 Pollution liability - aggregate
CSRMA - Interstate Fire & Cas.$2,000,000 Pollution liability - per pollution condition
CSRMA - Lloyds of London $2,000,000 Cyber liability - first party
CSRMA - Associated Industries $2,000,000 Cyber liability - excess
CSRMA - Travelers Ins.$25,000 Identity theft
CSRMA - Lloyds of London $2,500,000 Deadly weapons - aggregate
The financial statements of CSRMA are available at their office: 100 Pine Street, 11th Floor, San
Francisco, California 94111.
NOTE 14 – LEASE AND SUBSCRIPTION LIABILITIES
A. Lease Liabilities
A summary of governmental activities lease transactions for the fiscal year ended June 30, 2025,
are as follows:
Balance Balance Current
June 30, 2024 Retirements June 30, 2025 Portion
Governmental Activities
Lease Liabilities
Fire Station 57 Land Lease $5,474,403 ($10,873) $5,463,530 $16,527
Copier Equipment Leases 225,419 (68,527)156,892 58,391
Police Equipment Leases 705,569 (101,333)604,236 94,219
Total $6,405,391 ($180,733) $6,224,658 $169,137
On June 21, 2016, the City entered into a lease agreement as lessee with the County of Marin to
lease property for constructing Fire Station # 57 for a 40-year term, ending on June 30, 2056. The
City is required to make monthly principal and interest lease payments in the amount of $13,343
commencing July 1, 2021. The monthly lease payments are increased annually in the amount of
3% every July 1. As of June 30, 2025, the balance of the lease liability was $5,463,530 and the
net value of the right-to-use asset was $4,850,366 including accumulated amortization of
$625,853.
91
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 14 – LEASE AND SUBSCRIPTION LIABILITIES (Continued)
The City has entered into five separate equipment lease agreements as a lessee for copiers with
various vendors. The lease terms vary from 3-5 years and interest is implicit in the lease
agreements in the amount of 5%. The City is required to make monthly or yearly principal and
interest lease payments in varying amounts ranging from $765 to $52,975, depending on the
lease. As of June 30, 2025, the balance of the lease liability was $156,892 and the net value of the
right-to-use asset was $143,712, including accumulated amortization of $326,727.
In fiscal year 2024, the City entered into two separate equipment lease agreements as a lessee for
police equipment with different vendors. The lease terms vary from 4-10 years and interest is
implicit in the lease agreements in the amount of 5%. The City is required to make monthly or
yearly principal and interest lease payments in varying amounts ranging from $57,500 to $77,592,
depending on the lease. As of June 30, 2025, the balance of the lease liability was $604,236 and
the net value of the right-to-use asset was $597,554, including accumulated amortization of
$158,368. The future principal and interest lease payments as of June 30, 2025 are as follows:
For the Year
Ended June 30 Principal Interest Total
2026 $169,137 $201,736 $370,873
2027 169,491 193,528 363,019
2028 125,671 185,417 311,088
2029 84,229 179,619 263,848
2030 95,742 176,021 271,763
2031-2035 596,384 809,812 1,406,196
2036-2040 577,410 708,372 1,285,782
2041-2045 890,991 599,583 1,490,574
2046-2050 1,290,333 437,651 1,727,984
2051-2055 1,794,885 208,321 2,003,206
2056-2060 430,385 7,027 437,412
Totals $6,224,658 $3,707,087 $9,931,745
B. Subscription-Based Information Technology Liabilities
A summary of subscription-based information technology arrangements (SBITA) transactions for
the fiscal year ended June 30, 2025, are as follows:
Balance Balance Current
June 30, 2024 Retirements June 30, 2025 Portion
Governmental Activities
Subscription liabilities
Microsoft $752,008 ($174,475) $577,533 $183,198
OpenGov 203,265 (96,551) 106,714 106,714
MioVision 88,017 (88,017)
Axon 2 1,374,990 (129,397) 1,245,593 105,358
Total $2,418,280 ($488,440) $1,929,840 $395,270
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CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 14 – LEASE AND SUBSCRIPTION LIABILITIES (Continued)
On March 7, 2019, the City entered into a subscription agreement with Axon Enterprise, Inc. for a
subscription with a 5 year term. The City was required to make yearly subscription payments
ranging from $24,049 to $83,857 throughout the life of the subscription, which was scheduled to
end on December 31, 2029. On April 15, 2024, the City entered into a modified subscription
agreement with Axon Enterprise, Inc. for a subscription with a new 5 year term and 5 year
renewal option. Interest is implicit in the subscription agreement in the amount of 5%. As of June
30, 2025, the balance of the subscription liability was $1,245,593 and the net value of the right-
to-use asset was $1,237,491, including accumulated amortization of $137,499.
On August 9, 2022, the City entered into a subscription agreement with Microsoft for a
subscription with a 6 year term. The City is required to make yearly subscription payments of
$212,075 throughout the life of the subscription, which ends on August 31, 2028. Interest is
implicit in the subscription agreement in the amount of 5%. As of June 30, 2025, the balance of
the subscription liability was $577,533 and the net value of the right-to-use asset was $540,334,
including accumulated amortization of $540,334.
On February 1, 2024, the City entered into a subscription agreement with the OpenGov, Inc. for a
subscription with a 3 year term. The City is required to make yearly subscription payments
ranging from $101,633 to $112,050 throughout the life of the subscription, which ends on
January 31, 2027. As of June 30, 2025, the balance of the subscription liability was $106,714 and
the net value of the right-to-use asset was $578,957, including accumulated amortization of $0.
On November 29, 2023, the City entered into a subscription agreement with the Miovision
Technologies Incorporated. for a subscription with a 2 year term. The City is required to make
yearly subscription payments ranging from $88,017 to $92,418 throughout the life of the
subscription, which ends on April 25, 2025. As of June 30, 2025, the balance of the subscription
liability was $0 and the net value of the right-to-use asset was $0, including accumulated
amortization of $167,652.
The future subscription and interest subscription payments as of June 30, 2025 follows:
For the Year
Ended June 30 Principal Interest Total
2026 $395,270 $96,492 $491,762
2027 302,984 76,729 379,713
2028 318,133 61,579 379,712
2029 121,965 45,673 167,638
2030 133,092 39,575 172,667
2031 - 2034 658,396 85,646 744,042
Totals $1,929,840 $405,694 $2,335,534
93
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 15 – COMMITMENTS AND CONTINGENCIES
A. City Litigation
The City is a defendant in several lawsuits arising from its normal operations. City management
is of the opinion that the potential claims against the City not covered by insurance resulting from
such litigation would not materially affect the basic financial statements of the City.
B. District
As of June 30, 2025, SRSD had several contracts for sewer improvement projects with remaining
obligations of approximately $1,900,000.
In addition, SRSD contracts with the City for the services of its staff members who are employees
of the City. Management of SRSD is seeking the approval of the other agencies that are members
of CMSA to contract with CMSA rather than the City to provide staffing. Under the proposal, the
current staff members would be offered employment by CMSA. If approved, it is expected that
SRSD will incur transition costs and that ongoing personnel costs will increase. Also, SRSD’s
obligation to the City may be revalued and may be liquidated.
NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES
A. Redevelopment Dissolution
In an effort to mitigate its budget deficit, the State of California adopted ABx1 26 on June 28,
2011, amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities
except for limited specified activities as of that date and dissolved redevelopment agencies on
January 31, 2012.
The suspension provisions prohibited all redevelopment agencies from a wide range of activities,
including incurring new indebtedness or obligations, entering into, or modifying agreements or
contracts, acquiring, or disposing of real property, taking actions to adopt or amend
redevelopment plans and other similar actions, except actions required by law or to carry out
existing enforceable obligations, as defined in ABx1 26.
In addition, ABx1 26 and AB1484 directed the State Controller to review the activities of all
redevelopment agencies and successor agencies to determine whether an asset transfer between
an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did
occur and the public agency that received the asset is not contractually committed to a third party
for the expenditure or encumbrance of the asset, the legislation requires the State Controller to
order the asset returned to the redevelopment agency. This review was performed in May 2013,
and a report issued on July 29, 2013 (see section B of this footnote).
The City elected to become the Successor Agency to the Redevelopment Agency, and on
February 1, 2012, the Redevelopment Agency’s remaining net assets were distributed to the
Successor Agency. ABx1 26 requires the establishment of an Oversight Board to oversee the
activities of the Successor Agency and one was established on April 2, 2012. On July 1, 2018, the
County of Marin formed a county-wide Oversight Board to oversee the activities of all Successor
Agencies within the County, including San Rafael. The activities of the Successor Agency are
subject to review and approval of the Oversight Board, which is comprised of seven members.
94
CITY OF SAN RAFAEL
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2025
NOTE 16 – SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY PRIVATE-PURPOSE
TRUST FUND (SUCCESSOR AGENCY) ACTIVITIES
The activities of the Successor Agency are reported in the Successor Agency to the
Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the
Oversight Board. The City provides administrative services to the Successor Agency to wind
down the affairs of the former Redevelopment Agency.
Pursuant to the dissolution of the City of San Rafael Redevelopment Agency, certain assets of the
Redevelopment Agency were distributed to the Housing Successor and all remaining
Redevelopment Agency assets and liabilities were distributed to the Successor Agency.
The City elected to become the Housing Successor and on February 1, 2012. Assets and
Liabilities relating to the Housing Successor are reported in the City’s Low and Moderate Income
Housing Special Revenue Fund.
B. Redevelopment Property Tax Trust Fund (RPTTF)
The Successor Agency’s primary source of revenue comes from the RPTTF allocation distributed
by the County. Property tax revenues for each Project Area are deposited into the RPTTF, which
redistributes each Project Area’s tax increment under specified formulas. The County Auditor
administers the RPTTF and disburses twice annually from this fund pass-through payments to
affected taxing entities, an amount equal to the total of obligation payments that are required to be
paid from tax increment as denoted on the Recognized Obligation Payment Schedule (“ROPS”).
The disbursements are established in the treasury of the Successor Agencies, and various allowed
administrative fees and allowances. Any remaining balance is then distributed by the County
Auditor back to affected taxing entities under a prescribed method that accounts for pass-through
payments. The County Auditor is also responsible for the distributing other monies received from
the Successor Agency (from sale of assets, etc.) to the affected taxing entities. Successor agencies
in turn will use the amounts deposited into their respective funds to make payments for principal
and interest on loans and monies advanced to or indebtedness incurred by the dissolved
redevelopment agencies.
C.State Approval of Enforceable Obligation
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-annually
that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to
the review and approval of the Oversight Board as well as the State Department of Finance. As of
June 30, 2025, the Successor Agency had prepared sixteen ROPS, all of which have been approved
by the Oversight Board and the California Department of Finance. The Department of Finance has
stated that all items on a future ROPS are subject to a subsequent review. The amount, if any, of
current obligations that may be denied by the Department of Finance cannot be determined at this
time. The City expects such amounts, if any, to be immaterial.
95
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Measurement date 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019
City's proportionate share 36.7394%34.9538%32.7180%33.4752%36.6081%
Proportionate share of total pension liability $907,195,058 $900,629,287 $878,483,703 $947,923,920 $1,082,900,638
Proportionate share of fiduciary net position 764,871,931 733,574,437 757,834,016 837,356,062 949,023,107
Proportionate share of the net pension liability $142,323,127 $167,054,850 $120,649,687 $110,567,858 $133,877,531
Plan fiduciary net position as a percentage of the total pension liability 84.31%84.31%86.27%88.34%87.64%
Covered payroll (report date)$31,073,560 $32,126,272 $32,885,135 $36,349,651 $33,106,430
Net pension liability as a percentage of covered payroll 458.02%519.99%366.88%304.18%404.39%
Measurement date 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024
City's proportionate share 34.3574%29.6650%33.7322%34.4061%39.5184%
Proportionate share of total pension liability $1,059,269,505 $959,104,784 $1,120,775,111 $1,181,328,195 $1,416,561,207
Proportionate share of fiduciary net position 901,989,929 1,007,281,093 1,015,298,454 1,081,955,979 1,319,621,793
Proportionate share of the net pension liability (asset)$157,279,576 ($48,176,309) $105,476,657 $99,372,216 $96,939,414
Plan fiduciary net position as a percentage of the total pension liability 85.15%105.02%90.59%91.59%93.16%
Covered payroll (report date)$32,887,922 $31,697,590 $34,418,052 $35,543,480 $36,995,522
Net pension liability (asset) as a percentage of covered payroll 478.23%-151.99%306.46%279.58%262.03%
Cost-Sharing Multiple Employer Plan
Schedule of the City's Proportionate Share of the Net Pension Liability
Last 10 years
97
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
Fiscal year ended, June 30 2016
Contractually required contribution $19,339,577
Contributions in Relation to the
Contractually required contribution 19,339,577
Contribution Deficiency/ (Excess) $0
Covered payroll $32,126,272
Contributions as a percentage of
covered payroll 60.20%
Notes to Schedule
Valuation Date / Timing 6/30/2014 (for contributions made in FY2015-2016)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2015-16):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Actuarial Loss from 2009
Remaining Amortization period Unfunded liability - 16 years / Extraordinary Actuarial Loss - 24 years
Asset valuation method 5-year smoothed market, 80% /120% corridor around market
Inflation 3.25%
Salary increases 3.25% plus merit component based on employee classification and years of service
Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related Death rates for
Safety Members), with the 20-year static projection used by CalPERS replaced by
generational improvements from a base year of 2009 using Scale MP-2014
Disabled Mortality CalPERS 2014 Disability Mortality rates (Non-Industrial rates for Miscellaneous members
and Industrial Disability rates for Safety members), adjusted by 90% for Males and Females
(Miscellaneous and Safety) with the 20-year static projection used by CalPERS replaced by
generational improvements from a base year of 2009 using Scale MP-2014
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
98
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
Fiscal year ended, June 30 2017
Contractually required contribution $20,003,001
Contributions in Relation to the
Contractually required contribution 20,003,001
Contribution Deficiency/ (Excess) $0
Covered payroll $32,885,135
Contributions as a percentage of
covered payroll 60.83%
Notes to Schedule
Valuation Date / Timing 6/30/2015 (for contributions made in FY2016-2017)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2016-17):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(24 years remaining as of 6/30/14), the remaining UAL as of June 30, 2013
(16 years as of 6/30/14), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 19 years remaining as of June 30, 2016
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages
set back one year for male members/two years for female members
Disabled Mortality Sex distinct RP-2000 combined mortality projected to 2010 using Scale AA with ages
set forward three years for all members
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
99
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Fiscal year ended, June 30 2018
Contractually required contribution $20,167,435
Contributions in Relation to the
Contractually required contribution 20,167,435
Contribution Deficiency/ (Excess) $0
Covered payroll $36,349,651
Contributions as a percentage of
covered payroll 55.48%
Notes to Schedule
Valuation Date / Timing 6/30/2016 (for contributions made in FY2017-2018)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2017-18):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(22 years remaining as of 6/30/16), the remaining UAL as of June 30, 2013
(14 years as of 6/30/16), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 18 years remaining as of June 30, 2017
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.25%
Retirement Age
Healthy Mortality Sex distinct CalPERS 2014 Pre-Retirement Non-Industrial Death rates (plus Duty-Related
death rates for Safety members)
Disabled Mortality Rates of mortality among disabled members are given by CalPERS 2017
Disability Mortality rates (Non-Industrial rates for Miscellaneous members
and Industrial Disability rates for Safety members), adjusted by 90% for
Males (Miscellaneous and Safety) and 90% for Miscellaneous Females,
with the 15-year static projection used by CalPERS replaced by generational
improvements from a base year of 2014 using Scale MP-2017.
Last 10 years
Schedule of Contributions
(Continued)
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
100
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
Fiscal year ended, June 30 2019
Contractually required contribution $20,352,203
Contributions in Relation to the
Contractually required contribution 20,352,203
Contribution Deficiency/ (Excess)$0
Covered payroll $33,106,430
Contributions as a percentage of
covered payroll 61.48%
Notes to Schedule
Valuation Date / Timing 6/30/2017 (for contributions made in FY2018-2019)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2018-19):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(21 years remaining as of 6/30/17), the remaining UAL as of June 30, 2013
(13 years as of 6/30/17), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 17 years remaining as of June 30, 2018
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality Rates of mortality for active members are specified by CalPERS 2017
Pre-Retirement Non-Industrial Death Rates (plus Duty-Related Death
rates for Safety members), with the 20-year static projection used by
CalPERS replaced by generational improvements from a base year of
2014 using Scale MP-2017.
Disabled Mortality Rates of mortality among disabled members are given by CalPERS 2017
Disability Mortality rates (Non-Industrial rates for Miscellaneous members
and Industrial Disability rates for Safety members), adjusted by 90% for
Males (Miscellaneous and Safety) and 90% for Miscellaneous Females,
with the 20-year static projection used by CalPERS replaced by generational
improvements from a base year of 2014 using Scale MP-2017.
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
101
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
Fiscal year ended, June 30 2020
Contractually required contribution $20,031,614
Contributions in Relation to the
Contractually required contribution 20,031,614
Contribution Deficiency/ (Excess)$0
Covered payroll $32,887,922
Contributions as a percentage of
covered payroll 60.91%
Notes to Schedule
Valuation Date / Timing 6/30/2018 (for contributions made in FY2019-2020)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2019-20):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(20 years remaining as of 6/30/18), the remaining UAL as of June 30, 2013
(12 years as of 6/30/18), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 12 years remaining as of June 30, 2018
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality
Disabled Mortality
Rates of mortality for active members are specified by CalPERS 2017 Pre-Retirement Non-Industrial Death
rates (plus Duty-Related Death rates for Safety members), with the 15-year static projection used by CalPERS
replaced by generational improvements from a base year of 2014 using Scale MP-2017. 0% of all
Miscellaneous and 95% of all Safety pre-retirement deaths are assumed to be service-connected.
Rates of mortality for retired members and their beneficiaries are given by CalPERS 2017 Post-Retirement
Healthy Morality rates, adjusted by 90% for Males (Miscellaneous and Safety), with the 15-year static
projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-
2017.
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
102
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
Fiscal year ended, June 30 2021
Contractually required contribution $20,106,821
Contributions in Relation to the
Contractually required contribution 20,106,821
Contribution Deficiency/ (Excess)$0
Covered payroll $31,697,590
Contributions as a percentage of
covered payroll 63.43%
Notes to Schedule
Valuation Date / Timing 6/30/2019 (for contributions made in FY2020-2021)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2020 - 21):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(19 years remaining as of 6/30/19), the remaining UAL as of June 30, 2013
(11 years as of 6/30/19), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 11 years remaining as of June 30, 2019
Asset valuation method Market Value
Inflation 2.75% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 7.00%
Retirement Age
Healthy Mortality
Disabled Mortality Rates of mortality for retired members and their beneficiaries are given by CalPERS 2017 Post-Retirement
Healthy Morality rates, adjusted by 90% for Males (Miscellaneous and Safety), with the 15-year static
projection used by CalPERS replaced by generational improvements from a base year of 2014 using Scale MP-
2017.
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Rates of mortality for active members are specified by CalPERS 2017 Pre-Retirement Non-Industrial Death
rates (plus Duty-Related Death rates for Safety members), with the 15-year static projection used by CalPERS
replaced by generational improvements from a base year of 2014 using Scale MP-2017. 0% of all
Miscellaneous and 95% of all Safety pre-retirement deaths are assumed to be service-connected.
103
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
Fiscal year ended, June 30 2022
Contractually required contribution $21,859,307
Contributions in Relation to the
Contractually required contribution (21,859,307)
Contribution Deficiency/ (Excess)$0
Covered payroll $34,418,052
Contributions as a percentage of
covered payroll 63.51%
Notes to Schedule
Valuation Date / Timing 6/30/2020 (for contributions made in FY2021-2022)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2021 - 22):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(18 years remaining as of 6/30/20), the remaining UAL as of June 30, 2013
(10 years as of 6/30/20), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 10 years remaining as of June 30, 2020
Asset valuation method Market Value
Inflation 2.50% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 6.75%
Retirement Age
Healthy Mortality
Disabled Mortality
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Mortality rates for Miscellaneous active members are based on the sex distinct Public General 2010 Employee
Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale MP-
2020, with no adjustments.
Mortality rates for Safety active members are based on the sex distinct Public Safety 2010 Above-Median
Income Employee Mortality Table, with generational mortality improvements projected from 2010 using
Projection Scale MP-2020, with no adjustments. 10% of Safety member active deaths are assumed to occur in
the line of duty.
Mortality Rates for Retired Disabled Members", should be"Rates of mortality for Miscellaneous disabled
members are based on the sex distinct Public General 2010 Disabled Retiree Mortality Table, with
generational mortality improvements projected from 2010 using Projection Scale MP-2020, with no
adjustments.
Rates of mortality for Safety disabled members are based on the sex distinct Public Safety 2010 Disabled
Retiree Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale
MP-2020, adjusted by 95% for males with no adjustment for females.
104
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
Fiscal year ended, June 30 2023
Contractually required contribution $21,446,744
Contributions in Relation to the
Contractually required contribution (21,446,744)
Contribution Deficiency/ (Excess)$0
Covered payroll $35,543,480
Contributions as a percentage of
covered payroll 60.34%
Notes to Schedule
Valuation Date / Timing 6/30/2021 (for contributions made in FY2022-2023)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2022 - 23):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(17 years remaining as of 6/30/21), the remaining UAL as of June 30, 2013
(9 years as of 6/30/21), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 9 years remaining as of June 30, 2021
Asset valuation method Market Value
Inflation 2.50% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 6.75%
Retirement Age
Healthy Mortality
Disabled Mortality
Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Mortality rates for Miscellaneous active members are based on the sex distinct Public General 2010 Employee
Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale MP-
2020, with no adjustments.
Mortality rates for Safety active members are based on the sex distinct Public Safety 2010 Above-Median
Income Employee Mortality Table, with generational mortality improvements projected from 2010 using
Projection Scale MP-2020, with no adjustments. 10% of Safety member active deaths are assumed to occur in
the line of duty.
Mortality Rates for Retired Disabled Members", should be"Rates of mortality for Miscellaneous disabled
members are based on the sex distinct Public General 2010 Disabled Retiree Mortality Table, with
generational mortality improvements projected from 2010 using Projection Scale MP-2020, with no
adjustments.
Rates of mortality for Safety disabled members are based on the sex distinct Public Safety 2010 Disabled
Retiree Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale
MP-2020, adjusted by 95% for males with no adjustment for females.
105
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
Fiscal year ended, June 30 2024
Contractually required contribution $21,474,137
Contributions in Relation to the
Contractually required contribution (21,474,137)
Contribution Deficiency/ (Excess) $0
Covered payroll $36,995,522
Contributions as a percentage of
covered payroll 58.05%
Notes to Schedule
Valuation Date / Timing 6/30/2022 (for contributions made in FY2023-2024)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2023 - 24):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(16 years remaining as of 6/30/22), the remaining UAL as of June 30, 2013
(8 years as of 6/30/22), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 8 years remaining as of June 30, 2022
Asset valuation method Market Value
Inflation 2.50% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 6.75%
Retirement Age Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Healthy Mortality
Disabled Mortality
Mortality rates for Miscellaneous active members are based on the sex distinct Public General 2010 Employee
Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale MP-
2020, with no adjustments.
Mortality rates for Safety active members are based on the sex distinct Public Safety 2010 Above-Median
Income Employee Mortality Table, with generational mortality improvements projected from 2010 using
Projection Scale MP-2020, with no adjustments. 10% of Safety member active deaths are assumed to occur in
the line of duty.
Mortality Rates for Retired Disabled Members", should be"Rates of mortality for Miscellaneous disabled
members are based on the sex distinct Public General 2010 Disabled Retiree Mortality Table, with
generational mortality improvements projected from 2010 using Projection Scale MP-2020, with no
adjustments.
Rates of mortality for Safety disabled members are based on the sex distinct Public Safety 2010 Disabled
Retiree Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale
MP-2020, adjusted by 95% for males with no adjustment for females.
106
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
Fiscal year ended, June 30 2025
Contractually required contribution $23,969,930
Contributions in Relation to the
Contractually required contribution (23,969,930)
Contribution Deficiency/ (Excess) $0
Covered payroll $41,605,711
Contributions as a percentage of
covered payroll 57.61%
Notes to Schedule
Valuation Date / Timing 6/30/2023 (for contributions made in FY2024-2025)
Key Methods and Assumptions Used to Determine Contribution Rates (for FY2024 - 25):
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll with separate period for Extraordinary Gains or Losses
(15 years remaining as of 6/30/23), the remaining UAL as of June 30, 2013
(7 years as of 6/30/23), and additional layers for unexpected changes in UAL after
6/30/13 (24 years for gains and losses with a 5-year phase-in/out and 22 years for
assumption changes with a 3-year phase-in/out).
Remaining Amortization period 7 years remaining as of June 30, 2023
Asset valuation method Market Value
Inflation 2.50% per year
Salary increases 3.00% plus merit component based on employee classification and years of service
Investment Rate of Return 6.75%
Retirement Age Classic Tiers: Safety - 50, Miscellaneous - 55; PEPRA Tiers: Safety - 57, Miscellaneous - 62
Healthy Mortality
Disabled Mortality
Schedule of Contributions
Cost-Sharing Multiple Employer
Defined Benefit Pension Plan
Last 10 years
(Continued)
Mortality rates for Miscellaneous active members are based on the sex distinct Public General 2010 Employee Mortality
Table, with generational mortality improvements projected from 2010 using Projection Scale MP-2020, with no adjustments.
Mortality rates for Safety active members are based on the sex distinct Public Safety 2010 Above-Median Income
Employee Mortality Table, with generational mortality improvements Projected from 2010 using Projection Scale MP-2020,
with no adjustments. 10% of Safety member active deaths are assumed to occur in the line of duty.
Rates of mortality for Miscellaneous disabled members are based on the sex distinct Public General 2010 Disabled Retiree
Mortality Table, with generational mortality improvements projected from 2010 using Projection Scale MP-2020, adjusted
by 95% for females and males.
Rates of mortality for Safety disabled members are based on the sex distinct Public Safety 2010 Disabled Retiree Mortality
Table, with generational mortality improvements projected from 2010 using Projection Scale MP-2020, adjusted by 95% for
males with no adjustment for females.
107
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
Agent Multiple Employer Defined Benefit Plan
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
Measurement period 2015-16 2016-17 2017-18 2018-19
Total OPEB liability
Service cost $766,000 $789,000 $822,000 $805,000
Interest 3,447,000 3,540,000 3,435,000 3,515,000
Differences between expected and actual experience (4,107,000) (3,040,000)
Assumption changes 4,831,000 (2,735,000)
Benefit payments, including refunds of employee contributions (2,896,000) (3,015,000) (3,028,000) (3,072,000)
Net change in total OPEB liability 1,317,000 2,038,000 1,229,000 (4,527,000)
Total OPEB liability - beginning 48,226,000 49,543,000 51,581,000 52,810,000
Total OPEB liability - ending (a)$49,543,000 $51,581,000 $52,810,000 $48,283,000
OPEB fiduciary net position
Contributions - employer $2,896,000 $3,475,000 $3,573,000 $3,725,000
Net investment income 157,000 1,675,000 1,425,000 1,224,000
Benefit payments, including refunds of employee contributions (2,896,000) (3,015,000) (3,028,000) (3,072,000)
Administrative expense (7,000)(8,000) (44,000) (12,000)
Net change in plan fiduciary net position 150,000 2,127,000 1,926,000 1,865,000
Plan fiduciary net position - beginning 15,608,000 15,758,000 17,885,000 19,811,000
Plan fiduciary net position - ending (b)$15,758,000 $17,885,000 $19,811,000 $21,676,000
Plan net OPEB liability - ending (a) - (b)$33,785,000 $33,696,000 $32,999,000 $26,607,000
Plan fiduciary net position as a percentage
of the total OPEB liability 31.81% 34.67% 37.51% 44.89%
Covered employee payroll $37,846,000 $32,885,000 $36,350,000 $40,496,000
Plan net OPEB liability as a percentage of covered employee payroll 89.27% 102.47% 90.78% 65.70%
Historical information is required only for the measurement periods for which GASB 75 is applicable.
108
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
2019-20 2020-21 2021-22 2022-23 2023-24
$687,000 $679,000 $566,000 $582,000 $575,631
3,196,000 3,238,000 2,946,000 2,966,000 2,924,665
(4,063,000) (3,269,000)
2,748,000 2,278,000
(3,225,000) (3,315,000) (3,286,000) (3,172,000) (3,240,000)
658,000 (713,000) 226,000 (615,000) 260,296
48,283,000 48,941,000 48,228,000 48,454,000 47,839,000
$48,941,000 $48,228,000 $48,454,000 $47,839,000 $48,099,296
$3,784,000 $3,323,000 $3,294,000 $3,183,000 $3,251,000
770,000 6,319,000 (3,922,000) 1,629,000 2,965,706
(3,225,000) (3,315,000) (3,286,000) (3,172,000) (3,240,000)
(19,000) (17,000) (15,000) (18,000) (19,798)
1,310,000 6,310,000 (3,929,000) 1,622,000 2,956,908
21,676,000 22,986,000 29,296,000 25,367,000 26,989,000
$22,986,000 $29,296,000 $25,367,000 $26,989,000 $29,945,908
$25,955,000 $18,932,000 $23,087,000 $20,850,000 $18,153,388
46.97%60.74%52.35%56.42%62.26%
$39,920,000 $39,310,000 $43,602,857 $45,757,607 $45,758,000
65.02%48.16%52.95%45.57%39.67%
109
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
SCHEDULE OF CONTRIBUTIONS
Agent Multiple Employer Defined Benefit Plan
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
Fiscal year 2016-17
Actuarially determined contribution $3,450,000
Contributions in relation to
the actuarially determined contribution (3,475,000)
Contribution deficiency (excess) ($25,000)
Covered employee payroll $32,885,000
Contributions as a percentage of
covered employee payroll 10.49%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 06/30/17.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2015
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 19 years remaining as of June 30, 2016
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 7.25%
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2015 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/14 MCERA assumptions
Medical Trend Non-Medicare - 6.5% for 2017, decreasing 0.5% per year to an ultimate
rate of 4.50% for 2021 and Medicare - 6.7% for 2017, decreasing to an
ultimate rate of 4.5% for 2021 and later years
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived
PEMHCA minimum - 60%
Cap Increases None
Mortality projected fully generational with Scale MP-14, modified
to converge to ultimate improvement rates in 2022
Same as discount rate - expected City contributions projected to
keep sufficient plan assets to pay all benefits from trust
110
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2017-18
Actuarially determined contribution $3,530,000
Contributions in relation to
the actuarially determined contribution (3,563,000)
Contribution deficiency (excess) ($33,000)
Covered employee payroll $36,350,000
Contributions as a percentage of
covered employee payroll 9.80%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/18 and
6/30/19.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2017
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 18 years remaining as of June 30, 2017
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.75% at June 30, 2017; 7.25% at June 30, 2016
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/17 MCERA assumptions
Medical Trend Non-Medicare - 7.5% for 2019, decreasing to 4.00% for
2076 and later years and Medicare - 6.5% for 2019, decreasing
to 4.00% for 2076 and later years
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived
PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Post-retirement mortality: projected fully generational with Scale MP-2017
Pre-retirement mortality: projected 15-year static with 90% of Scale MP-2016
Same as discount rate - expected City contributions projected to keep sufficient plan
assets to pay all benefits from trust
111
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2018-19
Actuarially determined contribution $3,612,000
Contributions in relation to
the actuarially determined contribution (3,725,000)
Contribution deficiency (excess) ($113,000)
Covered employee payroll $40,496,000
Contributions as a percentage of
covered employee payroll 9.20%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/18 and
6/30/19.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2017
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 18 years remaining as of June 30, 2017
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.75% at June 30, 2017; 7.25% at June 30, 2016
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/17 MCERA assumptions
Medical Trend Non-Medicare - 7.5% for 2019, decreasing to 4.00% for
2076 and later years and Medicare - 6.5% for 2019, decreasing
to 4.00% for 2076 and later years
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived
PEMHCA minimum - 60%
Cap Increases None
Pre-retirement mortality: projected 15-year static with 90% of Scale MP-2016
Post-retirement mortality: projected fully generational with Scale MP-2017
Same as discount rate - expected City contributions projected to keep sufficient plan
assets to pay all benefits from trust
Agent Multiple Employer Defined Benefit Plan
112
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2019-20
Actuarially determined contribution $3,677,000
Contributions in relation to
the actuarially determined contribution (3,784,000)
Contribution deficiency (excess) ($107,000)
Covered employee payroll $39,920,000
Contributions as a percentage of
covered employee payroll 9.48%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2019 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/20 and
6/30/21.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2019
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 16 years remaining as of June 30, 2019
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.75% at June 30, 2019 and June 30, 2018, respectively
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/19 MCERA assumptions
Medical Trend Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate
of 4.0% in 2076 and Medicare - 6.3% for 2021, decreasing to
an ultimate rate of 4.00% in 2076
Healthcare participation for future retirees Capped benefit: 90% currently covered, 70% currently waived
PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Mortality projected fully generational with Scale MP-2019
Same as discount rate - expected City contributions projected to keep sufficient plan
assets to pay all benefits from trust
113
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2020-21
Actuarially determined contribution $3,027,000
Contributions in relation to
the actuarially determined contribution (3,322,583)
Contribution deficiency (excess)($295,583)
Covered employee payroll $39,310,000
Contributions as a percentage of
covered employee payroll 8.45%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2019 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/20 and
6/30/21.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2019
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 16 years remaining as of June 30, 2019
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.75% at June 30, 2020 and June 30, 2019, respectively
Contribution Policy City contributes full ADC
General Inflation 2.75% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2017 actuarial valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - 6/30/19 MCERA assumptions
Medical Trend Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate
of 4.0% in 2076 and Medicare - 6.3% for 2021, decreasing to
an ultimate rate of 4.00% in 2076
Healthcare participation for future retirees Capped benefit: 90% currently covered, 70% currently waived
PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Mortality projected fully generational with Scale MP-2019
Same as discount rate - expected City contributions projected to keep sufficient plan
assets to pay all benefits from trust
114
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
SCHEDULE OF CONTRIBUTIONS
Agent Multiple Employer Defined Benefit Plan
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2021-22
Actuarially determined contribution $3,093,000
Contributions in relation to
the actuarially determined contribution (3,294,000)
Contribution deficiency (excess) ($201,000)
Covered employee payroll $42,604,000
Contributions as a percentage of
covered employee payroll 7.73%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2021 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/22 and
6/30/23.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2021
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 14 years remaining as of June 30, 2021
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.25% at June 30, 2022 and June 30, 2021, respectively
Contribution Policy City contributes full ADC
General Inflation 2.50% per annum
Mortality, Retirement, Disability, Termination Same as June 30, 2019 valuation
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 2.75%
Merit - Increases - same as MCERA Assumptions as of June 30, 2020 valuation
Medical Trend Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076
Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076
Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2076
Healthcare participation for future retirees Capped benefit: 90% currently covered, 70% currently waived
PEMHCA minimum - 60%
Cap Increases None
Mortality projected fully generational with Scale MP-2021
Same as discount rate - expected City contributions projected to keep sufficient plan
assets to pay all benefits from trust
115
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2022-23
Actuarially determined contribution $2,618,000
Contributions in relation to
the actuarially determined contribution (3,183,000)
Contribution deficiency (excess) ($565,000)
Covered employee payroll $43,602,857
Contributions as a percentage of
covered employee payroll 7.30%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2021 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/22 and
6/30/23.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2021
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 13 year fixed period for 2022/23
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.25%
Contribution Policy City contributes full ADC
General Inflation 2.5% per annum
Mortality, Retirement, Disability, Termination 6/30/20 MCERA Valuation assumptions
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 3%
Merit - Increases - same as MCERA Assumptions as of June 30, 2020 valuation
Medical Trend Non-Medicare - 6.5% for 2023 decreasing 3.75% for 2076 and later
Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of3.75% in 2076
Medicare (Kaiser) - 4.60% for 2019, decreasing to an ultimate rate of 3.75% in 2076
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived
PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Mortality projected fully generational with Scale MP-2021
Same as discount rate - expected City contributions projected to keep sufficient plan
116
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2023-24
Actuarially determined contribution $2,605,000
Contributions in relation to
the actuarially determined contribution (3,251,000)
Contribution deficiency (excess)($646,000)
Covered employee payroll $45,757,607
Contributions as a percentage of
covered employee payroll 7.10%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2023 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/23 and
6/30/24.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2023
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 12 year fixed period for 2023/24
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.25%
Contribution Policy City contributes full ADC
General Inflation 2.5% per annum
Mortality, Retirement, Disability, Termination 6/30/23 MCERA Valuation assumptions
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 2.75%
Merit - Increases - same as MCERA Assumptions as of June 30, 2023 valuation
Medical Trend Non-Medicare - 8.5% for 2025 decreasing 3.45% for 2076 and later
Medicare (Non-Kaiser) - 7.5% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Healthcare participation for future retirees Capped benefit: 100% currently covered, 80% currently waived
PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Mortality projected fully generational with Scale MP-2021
Same as discount rate - expected City contributions projected to keep sufficient plan
117
CITY OF SAN RAFAEL
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2025
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years
Other Post-Employment Benefits (OPEB)
(Continued)
Fiscal year 2024-25
Actuarially determined contribution $2,833,000
Contributions in relation to
the actuarially determined contribution (3,368,560)
Contribution deficiency (excess)($535,560)
Covered employee payroll $48,248,846
Contributions as a percentage of
covered employee payroll 6.98%
GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer's Required Supplementary
Information for 10 years or as many years as are available upon implementation.
The June 30, 2023 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ending 6/30/24 and
6/30/25.
Notes to Schedule:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in
which contributions are reported.
Methods and assumptions used to determine contribution rates:
Valuation Date June 30, 2023
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar amount, over approximate 10-year period
Remaining Amortization 11 year fixed period for 2024/25
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.25%
Contribution Policy City contributes full ADC
General Inflation 2.5% per annum
Mortality, Retirement, Disability, Termination 6/30/23 MCERA Valuation assumptions
Mortality Improvement
Expected Long-Term Rate of Return on Investments
Salary Increases Aggregate - 2.75%
Merit - Increases - same as MCERA Assumptions as of June 30, 2023 valuation
Medical Trend Non-Medicare - 8.5% for 2025 decreasing 3.45% for 2076 and later
Medicare (Non-Kaiser) - 7.5% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Healthcare participation for future retirees Capped benefit: 90% currently covered, 70% currently waived
PEMHCA minimum - 60%
Cap Increases None
Agent Multiple Employer Defined Benefit Plan
Mortality projected fully generational with Scale MP-2021
Same as discount rate - expected City contributions projected to keep sufficient plan
118
GENERAL FUND AND MAJOR SPECIAL REVENUE FUND
BUDGET-TO-ACTUAL STATEMENTS
Generally accepted accounting principles dictate that budget-to-actual information in the basic financial
statements should be limited to the General Fund and major Special Revenue Funds. This section is provided
for the presentation of Budget-to-Actual Statements for the General Fund, Traffic and Housing Mitigation,
and the Gas Tax Special Revenue Funds.
Budgets are adopted on a basis consistent with Generally Accepted Accounting Principles for the General
Fund and Special Revenue Funds.
119
CITY OF SAN RAFAEL
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and special assessments $90,072,355 $90,072,355 $91,003,535 $931,180
Licenses and permits 2,950,488 2,950,488 3,346,342 395,854
Fines and forfeitures 203,400 203,400 297,212 93,812
Use of money and properties 1,122,283 1,122,283 2,306,492 1,184,209
Intergovernmental 4,148,395 4,148,395 4,729,694 581,299
Charges for services 3,074,558 3,074,558 3,163,591 89,033
Other revenue 358,000 358,000 926,142 568,142
Total Revenues 101,929,479 101,929,479 105,773,008 3,843,529
EXPENDITURES
Current:
General government 18,314,601 18,281,333 16,477,488 1,803,845
Public safety 52,580,305 53,483,653 53,289,499 194,154
Public works and parks 15,223,024 15,759,446 15,462,738 296,708
Community development 8,250,842 7,417,450 5,909,774 1,507,676
Culture and recreation 3,494,390 3,494,390 3,006,272 488,118
Debt service:
Principal 3,418,106 3,418,106 3,794,498 (376,392)
Interest and fiscal charges 1,903,686 1,903,686 2,034,131 (130,445)
Total Expenditures 103,184,954 103,758,064 99,974,400 3,783,664
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,255,475) (1,828,585) 5,798,608 7,627,193
OTHER FINANCING SOURCES (USES)
Transfers in 2,508,306 2,508,306 1,959,435 (548,871)
Transfers out (10,258,500) (10,258,500) (10,258,500)
Total Other Financing Sources (Uses) (7,750,194) (7,750,194) (8,299,065) (548,871)
Net Change in Fund Balance ($9,005,669) ($9,578,779) (2,500,457) $7,078,322
FUND BALANCE, BEGINNING OF YEAR 36,415,276
FUND BALANCE, END OF YEAR $33,914,819
120
CITY OF SAN RAFAEL
TRAFFIC AND HOUSING MITIGATION SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $170,158 $170,158 $211,234 $41,076
Intergovernmental 225,000 225,000 989,165 764,165
Charges for services 1,350,000 1,350,000 179,608 (1,170,392)
Other revenue 3,470 3,470
Total Revenues 1,745,158 1,745,158 1,383,477 (361,681)
EXPENDITURES
Current:
Public works and parks 540,000 732,703 149,245 583,458
Community development 1,652,000 225,334 1,426,666
Capital outlay 175,545 97,393 78,152
Total Expenditures 540,000 2,560,248 471,972 2,088,276
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,205,158 (815,090) 911,505 1,726,595
OTHER FINANCING SOURCES (USES)
Transfers out (250,000) (250,000) (250,000)
Total Other Financing Sources (Uses)(250,000) (250,000) (250,000)
Net Change in Fund Balance $955,158 ($1,065,090) 661,505 $1,726,595
5,914,177
FUND BALANCE, END OF YEAR $6,575,682
FUND BALANCE, BEGINNING OF YEAR
121
CITY OF SAN RAFAEL
GAS TAX SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and properties $353,335 $353,335 $570,211 $216,876
Intergovernmental 12,631,611 12,631,611 5,277,328 (7,354,283)
Charges for services 2,280,600 2,280,600 2,061,008 (219,592)
Other revenue 150,000 150,000 53,246 (96,754)
Total Revenues 15,415,546 15,415,546 7,961,793 (7,453,753)
EXPENDITURES
Current:
Public works and parks 16,511,838 16,429,600 4,876,064 11,553,536
Capital outlay 4,578,092 1,655,297 2,922,795
Total Expenditures 16,511,838 21,007,692 6,531,361 14,476,331
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,096,292) (5,592,146) 1,430,432 7,022,578
OTHER FINANCING SOURCES (USES)
Transfers in 1,250,000 1,250,000 1,250,000
Transfers out (760,000) (760,000) (760,000)
Total Other Financing Sources (Uses) 490,000 490,000 490,000
Net Change in Fund Balance ($606,292) ($5,102,146) 1,920,432 $7,022,578
FUND BALANCE, BEGINNING OF YEAR 13,372,829
FUND BALANCE, END OF YEAR $15,293,261
122
SUPPLEMENTARY INFORMATION
123
CITY OF SAN RAFAEL
ESSENTIAL FACILITIES CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $147,645 $147,645 $126,997 ($20,648)
Total Revenues 147,645 147,645 126,997 (20,648)
EXPENDITURES
Capital outlay 100,000 883,450 744,275 139,175
Total Expenditures 100,000 883,450 744,275 139,175
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 47,645 (735,805) (617,278) 118,527
OTHER FINANCING SOURCES (USES)
Transfers in 353,500 353,500 353,500
Total Other Financing Sources (Uses) 353,500 353,500 353,500
Net Change in Fund Balance $401,145 ($382,305) (263,778) $118,527
FUND BALANCE, BEGINNING OF YEAR 3,592,590
FUND BALANCE, END OF YEAR $3,328,812
124
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Recreation Revolving Fund – Established to administer the Recreation Department’s program and
facility rental charge and accounts for the Recreation Memorial Fund.
Baypoint Lagoons Assessment District Fund – 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.
Household Hazmat Facility Fund – Established to account for State mandated hazardous materials
information, collection, and reporting. Expenditures include inspection of businesses for compliance
with regulations. This fund also serves as the depository for countywide Household Hazardous Waste
Program.
Childcare Fund – Established to administer and account for childcare programs at eight sites
throughout the City.
Loch Lomond #10 Community Facilities District Fund – Established to provide maintenance for
stormwater and geotechnical mitigation facilities. A Mello Roos District was formed to fund this
maintenance.
Loch Lomond Marina #2 Community Facilities District Fund – Established to report tax
assessments and maintenance expenditures of the District.
Library Fund – Established to account for restricted library activities that are intended to be self-
funding.
Library Assessment Fund – Established to account for a special parcel tax dedicated to public library
services and facilities, equipment, and technology improvements.
Public Safety Fund – Established for special police services that are intended to be self-funding.
Stormwater Fund – Established to provide for self-funding storm drain maintenance program plus
separate programs through the County and Bay Area to educate residents about urban runoff pollution.
Development Services Fund – Established to account for development activities that are supported by
external sources of funds. This fund does not account for the operating costs of building, planning, and
engineering, which are located in the General Fund.
Grants Fund – Established to account for grants for the Library, Childcare, Police and Falkirk Cultural
Center.
Parkland Dedication Fund – Established to account for long-term developer deposits used to enhance
and maintain the park structure within City limits.
Emergency Medical Services Fund – Established to account for the Emergency Medical Services and
Transportation program that provides services to all segments of the community.
Business Improvement Fund – Established to account for activities held in Downtown San Rafael.
125
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Pt. San Pedro Maintenance Portion Special Revenue Fund – Established to account for ongoing
maintenance needs within the Pt. San Pedro assessment district.
Low and Moderate Income Housing Special Revenue Fund – Established to account for the
activities related to the assets assumed by the City as Housing Successor to the San Rafael
Redevelopment Agency for the housing activities of the former Redevelopment Agency.
Measure A Open Space Special Revenue Fund – Established to account for the use of proceeds
distributed by the County of Marin from Measure A, as well as other supplementary matching or City-
funding for the operation or maintenance of open space, park or recreation lands.
Measure G Cannabis Special Revenue Fund – Established for the purpose of reporting tax revenue and
expenditures related to Cannabis activities authorized by Measure G.
Measure C Wildfire Prevention Special Revenue Fund – Established for the purpose of reporting tax
revenue and expenditures related to coordinated wildfire prevention activities authorized by Measure C, a
parcel tax measure approved on March 3, 2020 by a two-thirds supermajority vote. This is a ten-year
parcel tax levying up to 10 cents per building square foot tax and $75 per multifamily unit.
CAPITAL PROJECTS FUNDS
Capital Improvement Fund – Established for the costs associated with major capital improvement
projects not tied to specific funds elsewhere. Improvements could include medians, parkways,
sidewalks, and other public assets.
Bedroom Tax Fund – Established to collect funds from multiple-unit housing used to pay for
maintaining and developing parks within local neighborhoods.
Assessment Districts Fund – Established to account for ongoing construction and improvement needs
within the following assessment districts: Peacock Gap, Kerner Boulevard, Sun Valley/Lucas Valley
Open Space, East San Rafael Drainage Assessment District 1.
Park Capital Projects Fund – Established to account for capital improvements for all City owned
parks, whether paid for by City funds, grants, donations, or partnership with the community.
Open Space Fund – Established for the acquisition of open space.
126
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2025
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.
ASSETS
Cash and investments $362,708 $238,533 $55,251 $1,628,235 $893,345
Restricted cash and investments
Receivables:
Accounts 296,631
Taxes 203 250
Grants
Loans
Leases 124,865
Total Assets $784,204 $238,736 $55,251 $1,628,235 $893,595
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $186,213 $38,531 $10,080
Deposits payable
Developer deposits payable
Unearned revenue 555,058
Total Liabilities 741,271 38,531 10,080
Deferred Inflows of Resources:
Unavailable revenue - leases 112,992
Total Deferred Inflows of Resources 112,992
Fund Balances:
Restricted $238,736 $55,251 1,589,704 883,515
Committed
Assigned
Unassigned (70,059)
Total Fund Balances (70,059) 238,736 55,251 1,589,704 883,515
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $784,204 $238,736 $55,251 $1,628,235 $893,595
SPECIAL REVENUE FUNDS
128
Loch Lomond
Marina #2
Community Library Public Development Parkland
Facilities Dist. Library Assessment Safety Stormwater Services Grants Dedication
$1,279,075 $2,757,955 $891,019 $57,154 $4,004,282 $626,081 $127,950 $380,990
2,500 366
2,358 8,520 6,642
787,133
219,640
$1,281,433 $2,760,455 $899,539 $57,154 $4,010,924 $846,087 $915,083 $380,990
$10,087 $140,566 $4,323 $7,586 $601,726 $46,689 $256,329
85,536 16,752
3,635
10,087 140,566 4,323 7,586 601,726 135,860 273,081
195,147
195,147
1,271,346 2,619,889 895,216 49,568 3,409,198 515,080 642,002 $380,990
1,271,346 2,619,889 895,216 49,568 3,409,198 515,080 642,002 380,990
$1,281,433 $2,760,455 $899,539 $57,154 $4,010,924 $846,087 $915,083 $380,990
(Continued)
SPECIAL REVENUE FUNDS
129
CITY OF SAN RAFAEL
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2025
Low and
Emergency Pt. San Pedro Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space
ASSETS
Cash and investments $3,281,402 $59,193 $285,453 $163,887 $887,275
Restricted cash and investments
Receivables:
Accounts 400,290
Taxes 42,139 1,423 297,649
Grants
Loans 1,859,833
Leases
Total Assets $3,723,831 $59,193 $286,876 $2,023,720 $1,184,924
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $49,743 $59,193 $6,997 $213,349
Deposits payable
Developer deposits payable
Unearned revenue
Total Liabilities 49,743 59,193 6,997 213,349
Deferred Inflows of Resources:
Unavailable revenue - leases
Total Deferred Inflows of Resources
Fund Balances:
Restricted 3,674,088 279,879 $2,023,720 971,575
Committed
Assigned
Unassigned
Total Fund Balances 3,674,088 279,879 2,023,720 971,575
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $3,723,831 $59,193 $286,876 $2,023,720 $1,184,924
SPECIAL REVENUE FUNDS
130
Total
Measure C Park Non-Major
Measure G Wildfire Capital Bedroom Assessment Capital Open Governmental
Cannabis Prevention Improvement Tax Districts Projects Space Funds
$883,422 $2,389,987 $5,465,743 $158,515 $216,354 $27,940 $126,205 $27,247,954
90,098 90,098
746,587 1,446,374
6,203 365,387
787,133
1,859,833
344,505
$889,625 $3,136,574 $5,465,743 $158,515 $306,452 $27,940 $126,205 $32,141,284
$290,054 $816,830 $2,738,296
102,288
3,635
555,058
290,054 816,830 3,399,277
308,139
308,139
$889,625 2,846,520 $158,515 $306,452 23,700,869
4,648,913 $27,940 4,676,853
$126,205 126,205
(70,059)
889,625 2,846,520 4,648,913 158,515 306,452 27,940 126,205 28,433,868
$889,625 $3,136,574 $5,465,743 $158,515 $306,452 $27,940 $126,205 $32,141,284
SPECIAL REVENUE
FUNDS CAPITAL PROJECTS FUNDS
131
Baypoint Loch Lomond
Lagoons Household #10
Recreation Assessment Hazmat Community
Revolving District Facility Childcare Facilities Dist.
REVENUES
Taxes and special assessments $25,368 $31,199
Use of money and properties $50,012 8,990 $56,684 32,313
Intergovernmental 1,080 713,901
Charges for services 2,215,692 3,414,126
Other revenue 13,729 800
Total Revenues 2,280,513 34,358 4,185,511 63,512
EXPENDITURES
Current:
General government
Public safety $527,641
Public works and parks 31,041 12,134
Community development
Culture and recreation 4,945,994 3,834,568
Capital outlay
Total Expenditures 4,945,994 31,041 527,641 3,834,568 12,134
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,665,481) 3,317 (527,641) 350,943 51,378
OTHER FINANCING SOURCES (USES)
Transfers in 2,420,000
Transfers out
Total Other Financing Sources (Uses)2,420,000
Net Change in Fund Balances (245,481) 3,317 (527,641) 350,943 51,378
Fund Balance, Beginning 175,422 235,419 582,892 1,238,761 832,137
Fund Balance, Ending ($70,059) $238,736 $55,251 $1,589,704 $883,515
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
SPECIAL REVENUE FUNDS
132
Loch Lomond
Marina #2
Community Library Public Development Parkland
Facilities Dist. Library Assessment Safety Stormwater Services Grants Dedication
$294,757 $1,195,702
45,222 $149,997 29,616 $153,119 $62,320 $14,017
14,435 $76,041 $2,962,947
1,313 830,213
9,387 14,473 7,292 175,033 178
349,366 180,218 1,225,318 83,333 1,158,365 62,320 2,963,125 14,017
2,508,719
236,252 299,624
170,730 940,717
228,701
7,029 1,283,187
2,788,652 1,819,882 144,308
170,730 2,795,681 1,283,187 236,252 2,760,599 3,181,352
178,636 (2,615,463) (57,869) (152,919) (1,602,234) 62,320 (218,227) 14,017
96,000 1,095,000 13,543
96,000 1,095,000 13,543
178,636 (2,615,463) (57,869) (56,919) (507,234) 62,320 (204,684) 14,017
1,092,710 5,235,352 953,085 106,487 3,916,432 452,760 846,686 366,973
$1,271,346 $2,619,889 $895,216 $49,568 $3,409,198 $515,080 $642,002 $380,990
(Continued)
SPECIAL REVENUE FUNDS
133
Low and
Emergency Pt. San Pedro - Moderate
Medical Business Maintenance Income Measure A
Services Improvement Portion Housing Open Space
REVENUES
Taxes and special assessments $5,414,694 $177,869 $598,007
Use of money and properties 116,686 9,650 $47,385 35,260
Intergovernmental 56,948
Charges for services 4,316,792
Other revenue 668,415 56,490
Total Revenues 10,573,535 187,519 103,875 633,267
EXPENDITURES
Current:
General government $50,000
Public safety 10,292,476
Public works and parks 141,534
Community development
Culture and recreation 137,532
Capital outlay 598,313
Total Expenditures 10,292,476 50,000 141,534 735,845
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 281,059 (50,000) 45,985 103,875 (102,578)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances 281,059 (50,000) 45,985 103,875 (102,578)
Fund Balance, Beginning 3,393,029 50,000 233,894 1,919,845 1,074,153
Fund Balance, Ending $3,674,088 $279,879 $2,023,720 $971,575
SPECIAL REVENUE FUNDS
CITY OF SAN RAFAEL
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
134
Total
Measure C Park Non-Major
Measure G Wildfire Capital Bedroom Assessment Capital Open Governmental
Cannabis Prevention Improvement Tax Districts Projects Space Funds
$132,716 $2,083,132 $2,168 $9,955,612
37,982 61,238 $363,986 5,817 $4,347 $4,643 1,289,284
1,719,941 360,934 5,906,227
10,778,136
60,563 27,206 $3,499 1,037,065
170,698 3,924,874 752,126 7,985 4,347 3,499 4,643 28,966,324
120,669 2,679,388
46,464 2,409,118 13,811,575
1,296,156
228,701
7,720 10,216,030
36,224 6,283,815 11,671,194
167,133 2,445,342 6,283,815 7,720 39,903,044
3,565 1,479,532 (5,531,689) 7,985 4,347 (4,221) 4,643 (10,936,720)
2,000,000 5,624,543
(151,129)(151,129)
(151,129) 2,000,000 5,473,414
(147,564) 1,479,532 (3,531,689) 7,985 4,347 (4,221) 4,643 (5,463,306)
1,037,189 1,366,988 8,180,602 150,530 302,105 32,161 121,562 33,897,174
$889,625 $2,846,520 $4,648,913 $158,515 $306,452 $27,940 $126,205 $28,433,868
CAPITAL PROJECTS FUNDSSPECIAL REVENUE FUNDS
135
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
SPECIAL REVENUE FUNDS
Recreation Revolving Baypoint Lagoons Assessment District
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $25,368 $25,368
Use of money and properties $63,131 $50,012 ($13,119) 8,838 8,990 $152
Intergovernmental 1,080 1,080
Charges for services 2,222,066 2,215,692 (6,374)
Other revenue 515 13,729 13,214
Total Revenues 2,285,712 2,280,513 (5,199) 34,206 34,358 152
EXPENDITURES
Current:
General government
Public safety
Public works and parks 221,205 31,041 190,164
Community development
Culture and recreation 4,932,191 4,945,994 (13,803)
Capital outlay
Total Expenditures 4,932,191 4,945,994 (13,803) 221,205 31,041 190,164
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,646,479) (2,665,481) (19,002) (186,999) 3,317 190,316
OTHER FINANCING SOURCES (USES)
Transfers in 2,420,000 2,420,000
Transfers out
Total Other Financing Sources (Uses) 2,420,000 2,420,000
NET CHANGE IN FUND BALANCE ($226,479) (245,481) ($19,002) ($186,999) 3,317 $190,316
FUND BALANCES, BEGINNING OF YEAR 175,422 235,419
FUND BALANCES, END OF YEAR ($70,059)$238,736
136
Loch Lomond #10
Household Hazmat Facility Childcare
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$25,000 $31,199 $6,199
$18,543 $56,684 $38,141 32,181 32,313 132
632,697 713,901 81,204
3,074,550 3,414,126 339,576
136,000 800 (135,200)
3,861,790 4,185,511 323,721 57,181 63,512 6,331
$527,641 $527,641
31,855 12,134 19,721
3,989,550 3,834,568 154,982
527,641 527,641 3,989,550 3,834,568 154,982 31,855 12,134 19,721
(527,641) (527,641) (127,760) 350,943 478,703 25,326 51,378 26,052
($527,641) (527,641) ($127,760) 350,943 $478,703 $25,326 51,378 $26,052
582,892 1,238,761 832,137
$55,251 $1,589,704 $883,515
(Continued)
Community Facilities District
SPECIAL REVENUE FUNDS
137
Library
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $223,119 $294,757 $71,638
Use of money and properties 34,796 45,222 10,426 $171,348 $149,997 ($21,351)
Intergovernmental 16,422 14,435 (1,987)
Charges for services 4,000 1,313 (2,687)
Other revenue 9,387 9,387 15,000 14,473 (527)
Total Revenues 257,915 349,366 91,451 206,770 180,218 (26,552)
EXPENDITURES
Current:
General government
Public safety
Public works and parks 251,756 170,730 81,026
Community development
Culture and recreation 42,392 7,029 35,363
Capital outlay 4,826,590 2,788,652 2,037,938
Total Expenditures 251,756 170,730 81,026 4,868,982 2,795,681 2,073,301
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 6,159 178,636 172,477 (4,662,212) (2,615,463) 2,046,749
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE $6,159 178,636 $172,477 ($4,662,212) (2,615,463) $2,046,749
FUND BALANCES, BEGINNING OF YEAR 1,092,710 5,235,352
FUND BALANCES, END OF YEAR $1,271,346 $2,619,889
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
Community Facilities District
SPECIAL REVENUE FUNDS
Loch Lomond Marina #2
138
SPECIAL REVENUE FUNDS
Library Assessment Public Safety Stormwater
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,202,532 $1,195,702 ($6,830)
33,751 29,616 (4,135) $4,050 ($4,050) $165,259 $153,119 ($12,140)
85,000 $76,041 (8,959) 906,653 (906,653)
830,000 830,213 213
15,000 7,292 (7,708) 175,033 175,033
1,236,283 1,225,318 (10,965) 104,050 83,333 (20,717) 1,901,912 1,158,365 (743,547)
219,110 236,252 (17,142)
1,693,323 940,717 752,606
1,869,730 1,283,187 586,543
4,560,856 1,819,882 2,740,974
1,869,730 1,283,187 586,543 219,110 236,252 (17,142) 6,254,179 2,760,599 3,493,580
(633,447) (57,869) 575,578 (115,060) (152,919) (37,859) (4,352,267) (1,602,234) 2,750,033
85,000 96,000 11,000 1,095,000 1,095,000
85,000 96,000 11,000 1,095,000 1,095,000
($633,447) (57,869) $575,578 ($30,060) (56,919) ($26,859) ($3,257,267) (507,234) $2,750,033
953,085 106,487 3,916,432
$895,216 $49,568 $3,409,198
(Continued)
139
Grants
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments
Use of money and properties $56,352 $62,320 $5,968
Intergovernmental $7,297,086 $2,962,947 ($4,334,139)
Charges for services
Other revenue 7,500 178 (7,322)
Total Revenues 56,352 62,320 5,968 7,304,586 2,963,125 (4,341,461)
EXPENDITURES
Current:
General government 3,398,995 2,508,719 890,276
Public safety 591,531 299,624 291,907
Public works and parks
Community development 1,583,820 228,701 1,355,119
Culture and recreation
Capital outlay 104,033 144,308 (40,275)
Total Expenditures 5,678,379 3,181,352 2,497,027
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 56,352 62,320 5,968 1,626,207 (218,227) (1,844,434)
OTHER FINANCING SOURCES (USES)
Transfers in 16,580 13,543 (3,037)
Transfers out
Total Other Financing Sources (Uses) 16,580 13,543 (3,037)
NET CHANGE IN FUND BALANCE $56,352 62,320 $5,968 $1,642,787 (204,684) ($1,847,471)
FUND BALANCES, BEGINNING OF YEAR 452,760 846,686
FUND BALANCES, END OF YEAR $515,080 $642,002
BUDGET AND ACTUAL
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025
SPECIAL REVENUE FUNDS
Development Services
140
Parkland Dedication Emergency Medical Services Business Improvement
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$5,318,560 $5,414,694 $96,134
$14,350 $14,017 ($333) 37,054 116,686 79,632
181,100 56,948 (124,152)
3,200,000 4,316,792 1,116,792
250,000 668,415 418,415
14,350 14,017 (333) 8,986,714 10,573,535 1,586,821
$50,000 $50,000
10,334,981 10,292,476 42,505
10,334,981 10,292,476 42,505 50,000 50,000
14,350 14,017 (333) (1,348,267) 281,059 1,629,326 (50,000) (50,000)
$14,350 14,017 ($333) ($1,348,267) 281,059 $1,629,326 ($50,000) (50,000)
366,973 3,393,029 50,000
$380,990 $3,674,088
(Continued)
SPECIAL REVENUE FUNDS
141
Low and Moderate Income Housing
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Taxes and special assessments $150,000 $177,869 $27,869
Use of money and properties 6,233 9,650 3,417 $10,564 $47,385 $36,821
Intergovernmental
Charges for services
Other revenue 56,490 56,490
Total Revenues 156,233 187,519 31,286 10,564 103,875 93,311
EXPENDITURES
Current:
General government 85,770 85,770
Public safety
Public works and parks 187,686 141,534 46,152
Community development
Culture and recreation
Capital outlay
Total Expenditures 187,686 141,534 46,152 85,770 85,770
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (31,453) 45,985 77,438 (75,206) 103,875 179,081
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE ($31,453) 45,985 $77,438 ($75,206) 103,875 $179,081
FUND BALANCES, BEGINNING OF YEAR 233,894 1,919,845
FUND BALANCES, END OF YEAR $279,879 $2,023,720
FOR THE YEAR ENDED JUNE 30, 2025
CITY OF SAN RAFAEL
BUDGETED NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
Pt. San Pedro-Maintenance Portion
SPECIAL REVENUE FUNDS
142
SPECIAL REVENUE FUNDS
Measure A Open Space Measure G Cannabis Measure C Wildfire Prevention
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$549,878 $598,007 $48,129 $225,000 $132,716 ($92,284) $1,995,362 $2,083,132 $87,770
16,319 35,260 18,941 44,627 37,982 (6,645) 7,494 61,238 53,744
1,353,205 1,719,941 366,736
60,563 60,563
566,197 633,267 67,070 269,627 170,698 (98,929) 3,356,061 3,924,874 568,813
124,720 120,669 4,051
3 3 45,663 46,464 (801) 5,756,533 2,409,118 3,347,415
137,532 (137,532)
1,250,192 598,313 651,879 36,224 (36,224)
1,250,195 735,845 514,350 170,383 167,133 3,250 5,756,533 2,445,342 3,311,191
(683,998) (102,578) 581,420 99,244 3,565 (95,679) (2,400,472) 1,479,532 3,880,004
(700,000) (151,129) 548,871
(700,000) (151,129) 548,871
($683,998) (102,578) $581,420 ($600,756) (147,564) $453,192 ($2,400,472) 1,479,532 $3,880,004
1,074,153 1,037,189 1,366,988
$971,575 $889,625 $2,846,520
143
INTERNAL SERVICE FUNDS
Internal service funds account for department services and financing performed for other departments
within the same governmental jurisdiction. Funding comes from charges assessed to the departments
benefiting from the service.
Building Maintenance Fund – Established to account for construction projects and cyclical large
dollar maintenance tasks (roof, painting) completed on City owned buildings.
Vehicle Replacement Fund – Established to provide for the replacement of vehicles.
Equipment Replacement Fund – Established to provide for the replacement of computers and
equipment.
Employee Benefits Fund – This fund is utilized for the payment of retiree benefits, unemployment
insurance, accumulated leave requirements and other negotiated benefits not tied to a specific
department.
Liability Insurance Fund – Established to maintain sufficient reserves for outstanding claims. All
costs associated with liability premiums are paid from this fund.
Workers’ Compensation Fund – Established to maintain sufficient reserves for injury claims. All
costs associated with workers compensation, including safety training, wellness programs, claim
expenses and insurance premiums are paid from this fund.
Dental Insurance Fund – Set up to maintain sufficient reserves for dental claims. All costs
associated with dental claims and administrations are paid from this fund.
Employee Retirement Fund – Established to maintain sufficient reserves to fund debt service
payments on the 2010 Taxable Pension Obligation Bonds and other pension related obligations.
OPEB/Retiree Medical Fund – Established to account for activities related to the funding,
administration and procurement of retiree medical benefits.
Radio Replacement Fund – Established to meet radio system operating costs, capital acquisition and
replacement, and operating lease obligations for the Public Works, Fire, Community Development and
Police Departments. The Marin Emergency Radio Authority (MERA) is a countywide JPA that has
taken the roll in procurement and installation of a new digital radio system. This fund supports San
Rafael's portion of the MERA efforts and related contractual obligations.
Telephone Replacement Fund – Established to provide ongoing support services for telephone
equipment and usage throughout the organization.
Sewer Maintenance Fund – Established to record both the cost of providing services to the San
Rafael Sanitation District and the charges for those services.
145
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2025
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
ASSETS
Current Assets:
Cash and investments $8,011,587 $6,098,504 $5,808,003 $411,313 $4,951,080
Accounts receivable
Prepaid expenses 837,058 1,006,580 35,415
Capital assets:
Nondepreciable assets 169,757
Depreciable assets, net 5,648,417 7,186,631 1,119,294
Total Assets 13,829,761 14,122,193 7,933,877 411,313 4,986,495
LIABILITIES
Current Liabilities:
Accounts payable 60,990 34,814 484,538 3,714 401,752
Claims payable - due in one year 1,277,825
Long-term debt - due in one year 21,755
Subscription liabilities - due in one year 289,912
Non-current Liabilities:
Claims payable - due in more than one year 2,126,762
Long-term debt - due in more than one year 77,953
Subscription liabilities - due in more than one year 394,335
Total Liabilities 160,698 34,814 1,168,785 3,714 3,806,339
NET POSITION:
Net investment in capital assets 5,718,466 7,186,631 435,047
Unrestricted 7,950,597 6,900,748 6,330,045 407,599 1,180,156
Total Net Position $13,669,063 $14,087,379 $6,765,092 $407,599 $1,180,156
146
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total
$13,776,226 $670,525 $1,192,597 $1,256,867 $553,489 $626,294 $170,851 $43,527,336
3,782 3,782
354,480 2,233,533
169,757
13,954,342
14,130,706 674,307 1,192,597 1,256,867 553,489 626,294 170,851 59,888,750
16,947 3,731 53,398 170,851 1,230,735
2,388,389 3,666,214
21,755
289,912
8,995,923 11,122,685
77,953
394,335
11,401,259 3,731 53,398 170,851 16,803,589
13,340,144
2,729,447 670,576 1,192,597 1,256,867 553,489 572,896 29,745,017
$2,729,447 $670,576 $1,192,597 $1,256,867 $553,489 $572,896 $43,085,161
147
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
OPERATING REVENUES
Charges for current services $2,000,000 $1,286,733 $2,758,364 $1,055,048 $2,814,880
Other operating revenues 401,256
Total Operating Revenues 2,000,000 1,286,733 2,758,364 1,055,048 3,216,136
OPERATING EXPENSES
Personnel 870,825 477,130
Insurance premiums and claims 3,069,983
Maintenance and repairs 434,893 (156,046)
General and administrative 5,266 3,056,475 408,031 213,978
Depreciation and amortization expense 304,838 1,260,007 205,106
Total Operating Expenses 744,997 1,103,961 3,261,581 1,278,856 3,761,091
Operating Income (Loss) 1,255,003 182,772 (503,217) (223,808) (544,955)
NONOPERATING REVENUES (EXPENSES)
Investment income 277,296 218,277 242,272 13,999 155,607
Interest expense (47,763)
Miscellaneous revenues 99
Gain on sale of capital assets 191,839
Total Nonoperating
Revenues (Expenses) 277,296 410,215 194,509 13,999 155,607
Net income (loss) before contributions
and transfers 1,532,299 592,987 (308,708) (209,809) (389,348)
TRANSFERS
Transfers in 1,000,000 500,000 2,000,000
Transfers out (13,543)
Net transfers 1,000,000 486,457 2,000,000
Change in Net Position 1,532,299 1,592,987 177,749 (209,809) 1,610,652
NET POSITION, BEGINNING OF YEAR 12,136,764 12,494,392 6,587,343 617,408 (430,496)
NET POSITION, END OF YEAR $13,669,063 $14,087,379 $6,765,092 $407,599 $1,180,156
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2025
148
OPEB/
Workers' Dental Employee Retiree Radio Telephone Sewer
Compensation Insurance Retirement Medical Replacement Replacement Maintenance Total
$2,824,303 $418,980 $3,360,000 $450,000 $684,400 $3,404,270 $21,056,978
270,853 1,138,881 1,810,990
3,095,156 418,980 4,498,881 450,000 684,400 3,404,270 22,867,968
199,312 3,266,329 4,813,596
2,203,747 396,983 3,861,074 9,531,787
69,612 348,459
182,630 38,469 $2,000 513,918 467,311 144,141 5,032,219
1,769,951
2,585,689 435,452 2,000 3,861,074 513,918 536,923 3,410,470 21,496,012
509,467 (16,472) (2,000) 637,807 (63,918) 147,477 (6,200) 1,371,956
506,563 30,318 51,884 39,893 15,458 21,145 1,572,712
(47,763)
6,200 6,299
191,839
506,563 30,318 51,884 39,893 15,458 21,145 6,200 1,723,087
1,016,030 13,846 49,884 677,700 (48,460) 168,622 3,095,043
3,500,000
(680,313) (693,856)
(680,313) 2,806,144
1,016,030 13,846 (630,429) 677,700 (48,460) 168,622 5,901,187
1,713,417 656,730 1,823,026 579,167 601,949 404,274 37,183,974
$2,729,447 $670,576 $1,192,597 $1,256,867 $553,489 $572,896 $43,085,161
149
CITY OF SAN RAFAEL
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2025
Building Vehicle Equipment Employee Liability
Maintenance Replacement Replacement Benefits Insurance
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers/other funds $2,000,000 $1,296,733 $2,758,364 $1,055,048 $2,815,680
Cash payments to suppliers for goods and services (413,703) 162,550 (3,778,636) (554,704) (2,893,185)
Cash payments to employees for salaries and benefits (870,825) (477,130)
Other operating revenues 401,256
Cash Flows from Operating Activities 1,586,297 1,459,283 (1,020,272) (370,481) (153,379)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Miscellaneous revenues 99
Interfund revenues 1,000,000 500,000 2,000,000
Interfund payments (13,543)
Cash Flows from Noncapital
Financing Activities 1,000,099 486,457 2,000,000
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Payment on note payable (21,755)
Payment on subscription liability (271,026)
Payment on subscription interest (47,763)
Acquisition and construction of capital assets (149,111) (1,737,546) (54,651)
Proceeds from sale of property 191,839
Cash Flows from Investing Activities (170,866) (1,545,707) (373,440)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 277,296 218,277 242,272 13,999 155,607
Cash Flows from Investing Activities 277,296 218,277 242,272 13,999 155,607
Net increase (decrease) in cash and cash equivalents 1,692,727 1,131,952 (664,983) (356,482) 2,002,228
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 6,318,860 4,966,552 6,472,986 767,795 2,948,852
CASH AND CASH EQUIVALENTS, END OF YEAR $8,011,587 $6,098,504 $5,808,003 $411,313 $4,951,080
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss) $1,255,003 $182,772 ($503,217) ($223,808) ($544,955)
Adjustments to reconcile operating income
to cash flows from operating activities:
Depreciation and amortization 304,838 1,260,007 205,106
Net change in assets and liabilities:
Account receivable 10,000 800
Grant receivable
Prepaids (982,585) (35,415)
Accounts payable 26,456 6,504 260,424 (146,673) 362,375
Claims payable 63,816
Net Cash Provided by (Used in) Operating Activities $1,586,297 $1,459,283 ($1,020,272) ($370,481) ($153,379)
150
OPEB/
Workers' Dental Employee Employee Radio Telephone Sewer
Compensation Insurance Retirement Retirement Replacement Replacement Maintenance Total
$2,824,303 $415,198 $3,360,000 $450,000 $685,400 $4,192,507 $21,853,233
(2,501,234) (438,400) ($2,000) (3,861,074) (513,918) (537,758) (3,633,678) (18,965,740)
(199,312)(1,547,267)
270,853 1,138,881 1,810,990
394,610 (23,202) (2,000) 637,807 (63,918) 147,642 558,829 3,151,216
6,200 6,299
3,500,000
(680,313)(394,178) (1,088,034)
(680,313)(387,978) 2,418,265
(21,755)
(271,026)
(47,763)
(1,941,308)
191,839
(2,090,013)
506,563 30,318 51,884 39,893 15,458 21,145 1,572,712
506,563 30,318 51,884 39,893 15,458 21,145 1,572,712
901,173 7,116 (630,429) 677,700 (48,460) 168,787 170,851 5,052,180
12,875,053 663,409 1,823,026 579,167 601,949 457,507 38,475,156
$13,776,226 $670,525 $1,192,597 $1,256,867 $553,489 $626,294 $170,851 $43,527,336
$509,467 ($16,472) ($2,000) $637,807 ($63,918) $147,477 ($6,200) $1,371,956
1,769,951
($3,782)$788,237 795,255
1,000 1,000
(354,480)(1,372,480)
16,402 (2,948)(835) (223,208) 298,497
223,221 287,037
$394,610 ($23,202) ($2,000) $637,807 ($63,918) $147,642 $558,829 $3,151,216
151
Mission Bike Race, San Rafael
STATISTICAL SECTION
STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary
information says about the City’s overall financial health. In contrast to the financial section, the statistical section
information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and
well-being have changed over time:
1.Net Position by Component
2.Changes in Net Position
3.Fund Balances of Governmental Funds
4.Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the
property tax:
1.Assessed and Estimated Actual Value of Taxable Property
2.Property Tax Rates, All Overlapping Governments
3.Property Tax Rates, Direct & Overlapping Governments
4.Principal Property Taxpayers
5.Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of
outstanding debt and the City’s ability to issue additional debt in the future:
1.Ratio of Outstanding Debt by Type
2.Computation of Direct and Overlapping Debt
3.Computation of Legal Bonded Debt Margin
4.Revenue Bond Coverage Parking Facility
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within
which the City’s financial activities take place:
1.Demographic and Economic Statistics
2.Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the
City’s financial report relates to the services the City provides and the activities it performs:
1.Full-Time Equivalent City Government Employees by Function
2.Operating Indicators by Function/Program
3.Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial
Reports for the relevant year.
155
CITY OF SAN RAFAEL
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
2016 (a)2017 2018 2019
Governmental activities
Net investment in capital assets $193,707,175 $199,202,842 $217,170,376 $231,844,210
Restricted 31,286,725 29,225,643 25,549,583 23,288,874
Unrestricted (93,273,480) (112,913,181) (122,577,233) (118,215,177)
Total governmental activities net position $131,720,420 $115,515,304 $120,142,726 $136,917,907
Business-type activities
Net investment in capital assets $10,958,058 $10,968,642 $10,951,518 $11,023,426
Unrestricted (1,136,050) (871,620) (886,848) (1,180,121)
Total business-type activities net position $9,822,008 $10,097,022 $10,064,670 $9,843,305
Primary government
Net investment in capital assets $204,665,233 $210,171,484 $228,121,894 $242,867,636
Restricted 31,286,725 29,225,643 25,549,583 23,288,874
Unrestricted (94,409,530) (113,784,801) (123,464,081) (119,395,298)
Total primary government net position $141,542,428 $125,612,326 $130,207,396 $146,761,212
(a) The City adjusted certain beginning balances during fiscal year 2015-2016.
Financial data shown for proceeding years were not adjusted for the presentation.
($130,000)
($30,000)
$70,000
$170,000
$270,000
$370,000
2016 (a) 2017 2018 2019 2020 2021 2022 2023 2024 2025
Th
o
u
s
a
n
d
s
Net investment in capital assets Restricted Unrestricted
156
□ ■ ■
2020 2021 2022 2023 2024 2025
$230,737,025 $228,252,998 $246,437,706 $259,204,102 $268,520,108 $276,990,873
23,522,748 36,175,158 36,668,766 46,773,333 48,596,168 49,052,769
(116,133,437) (107,929,957) (48,883,395) (24,466,269) (6,281,168) 1,335,242
$138,126,336 $156,498,199 $234,223,077 $281,511,166 $310,835,108 $327,378,884
$11,104,751 $11,174,601 $11,256,222 $11,454,000 $11,354,160 $11,424,066
(1,204,307) (2,205,300) (1,189,003) (653,194) (651,060) (294,899)
$9,900,444 $8,969,301 $10,067,219 $10,800,806 $10,703,100 $11,129,167
$241,841,776 $239,427,599 $257,693,928 $270,658,102 $279,874,268 $288,414,939
23,522,748 36,175,158 36,668,766 46,773,333 48,596,168 49,052,769
(117,337,744) (110,135,257) (50,072,398) (25,119,463) (6,932,228) 1,040,343
$148,026,780 $165,467,500 $244,290,296 $292,311,972 $321,538,208 $338,508,051
157
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2016 2017 2018 2019
Expenses
Governmental Activities:
General government $12,952,983 $10,996,269 $9,835,941 $11,967,641
Public safety 55,399,798 44,366,734 53,231,197 49,899,296
Public works and parks 22,929,289 19,845,719 22,084,433 19,270,613
Community development 4,307,269 4,242,743 4,040,195 5,781,826
Culture and recreation 15,026,680 14,131,000 13,285,563 12,819,429
Interest on long-term debt 277,263 271,263 884,336 1,848,263
Total Governmental Activities Expenses 110,893,282 93,853,728 103,361,665 101,587,068
Business-Type Activities:
Parking services 4,762,851 4,188,152 4,627,716 5,038,553
Total Business-Type Activities Expenses 4,762,851 4,188,152 4,627,716 5,038,553
Total Primary Government Expenses $115,656,133 $98,041,880 $107,989,381 $106,625,621
Component Unit:
San Rafael Sanitation District $11,654,767 $11,255,194 $12,235,868 $12,601,257
Program Revenues
Governmental Activities:
Charges for services:
General government $526,495 $421,393 $517,542 $377,606
Public safety 4,939,658 4,264,939 5,628,478 5,304,832
Public works and parks 5,157,289 1,804,698 2,362,375 4,158,338
Community development 4,004,178 3,850,107 3,814,892 4,312,259
Culture and recreation 6,683,059 6,941,013 6,819,303 5,750,846
Operating grants and contributions 4,678,338 3,965,351 5,142,670 4,584,855
Capital grants and contributions 1,470,953 1,702,993 974,603 8,042,524
Total Government Activities Program Revenues 27,459,970 22,950,494 25,259,863 32,531,260
Business-Type Activities:
Charges for services:
Parking services 5,212,181 5,268,991 5,203,585 5,362,016
Total Business-Type Activities Program Revenues 5,212,181 5,268,991 5,203,585 5,362,016
Total Primary Government Program Revenues $32,672,151 $28,219,485 $30,463,448 $37,893,276
Component Unit:
San Rafael Sanitation District
Charges for services $15,414,530 $16,014,016 $16,829,908 $16,964,083
Operating grants and contributions 36,945 58,440 5,907
Capital grants and contributions 79,245 105,734 1,433,871
Total Component Unit Program Revenues $15,414,530 $16,130,206 $16,994,082 $18,403,861
Net (Expense)/Revenue
Governmental Activities ($83,433,312) ($70,903,234) ($78,101,802) ($69,055,808)
Business-Type Activities 449,330 1,080,839 575,869 323,463
Total Primary Government Net Expense ($82,983,982) ($69,822,395) ($77,525,933) ($68,732,345)
Component Unit Activities $3,862,215 $4,875,012 $4,758,214 $5,802,604
158
2020 2021 2022 2023 2024 2025
$15,629,601 $12,254,642 $10,458,884 $11,162,650 $14,901,980 $17,615,468
50,000,809 54,736,561 34,379,474 49,903,663 57,399,596 64,083,535
21,661,442 20,749,666 14,030,717 23,353,510 24,392,108 27,724,431
5,314,692 5,804,134 2,835,173 4,436,659 6,043,266 6,008,500
11,828,353 10,619,181 7,430,968 10,723,168 12,725,048 12,995,897
1,974,834 1,935,532 2,004,572 1,793,203 1,655,588 1,573,951
106,409,731 106,099,716 71,139,788 101,372,853 117,117,586 130,001,782
4,491,375 3,748,667 2,226,556 3,435,551 4,078,051 3,774,044
4,491,375 3,748,667 2,226,556 3,435,551 4,078,051 3,774,044
$110,901,106 $109,848,383 $73,366,344 $104,808,404 $121,195,637 $133,775,826
$13,853,263 $13,790,905 $12,892,687 $13,541,927 $15,592,949 $16,260,424
$394,882 $388,833 $1,039,816 $383,890 $411,655 $110,112
5,824,555 5,332,486 6,302,852 7,063,009 7,365,020 7,642,292
3,082,495 2,719,148 2,996,881 3,146,404 4,146,897 2,952,012
5,470,010 8,390,282 4,493,292 4,982,748 5,757,689 4,695,585
4,370,442 2,932,869 4,105,520 5,158,806 5,488,779 5,635,593
5,545,731 5,132,596 22,520,880 6,763,815 6,530,607 9,970,153
1,348,640 8,718,764 9,867,883 18,438,231 8,181,276 3,219,570
26,036,755 33,614,978 51,327,124 45,936,903 37,881,923 34,225,317
5,063,318 3,351,864 3,836,881 4,682,140 4,552,629 4,761,985
5,063,318 3,351,864 3,836,881 4,682,140 4,552,629 4,761,985
$31,100,073 $36,966,842 $55,164,005 $50,619,043 $42,434,552 $38,987,302
$16,874,361 $16,945,721 $16,458,113 $16,638,611 $16,657,102 $18,877,412
5,719 5,609 5,568 5,531 5,775 5,694
175,217 277,752 517,752 175,481 248,116 73,061
$17,055,297 $17,229,082 $16,981,433 $16,819,623 $16,910,993 $18,956,167
($80,372,976) ($72,484,738) ($19,812,664) ($55,435,950) ($79,235,663) ($95,776,465)
571,943 (396,803)1,610,325 1,246,589 474,578 987,941
($79,801,033) ($72,881,541) ($18,202,339) ($54,189,361) ($78,761,085) ($94,788,524)
$3,202,034 $3,438,177 $4,088,746 $3,277,696 $1,318,044 $2,695,743
(Continued)
159
CITY OF SAN RAFAEL
CHANGES IN NET POSITION
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2016 2017 2018 2019
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property $19,998,567 $23,343,140 $24,627,373 $25,903,240
Sales 34,348,089 31,819,259 34,119,502 35,626,646
Paramedic 4,226,020 5,485,637 4,923,148 4,934,584
Transient occupancy 3,063,263 2,984,758 3,115,151 3,203,499
Franchise 3,418,277 3,610,824 3,726,841 3,627,254
Business license 2,824,664 2,774,803 2,790,212 2,788,496
Other 3,465,193 1,824,830 2,245,882 1,783,170
Investment earnings 300,091 210,628 556,745 1,450,434
Gain (loss) from sale of capital assets
Miscellaneous 1,387,315 2,448,604 5,991,713 5,904,968
Transfers 448,478 536,000 632,657 608,698
Total Government Activities 73,479,957 75,038,483 82,729,224 85,830,989
Business-Type Activities:
Investment earnings 14,723 10,810 24,436 63,870
Transfers (448,478) (536,000) (632,657) (608,698)
Total Business-Type Activities (433,755) (525,190) (608,221) (544,828)
Total Primary Government $73,046,202 $74,513,293 $82,121,003 $85,286,161
Component Unit:
San Rafael Sanitation District
Property Taxes $1,367,172 $1,528,047 $1,620,584 $1,727,221
Investment earnings 46,225 97,090 234,379 519,793
Miscellaneous 10,690 7,768
Gain (loss) from sale of capital assets
Total Component Unit $1,413,397 $1,625,137 $1,865,653 $2,254,782
Change in Net Position
Governmental Activities ($9,953,355) $4,135,249 $4,627,422 $16,775,181
Business-Type Activities 15,575 555,649 (32,352) (221,365)
Total Primary Government ($9,937,780) $4,690,898 $4,595,070 $16,553,816
Change in Net Position
Component Unit Activities $5,275,612 $6,500,149 $6,623,867 $8,057,386
160
2020 2021 2022 2023 2024 2025
$26,491,505 $30,993,516 $32,324,129 $33,023,030 $35,635,864 $36,503,556
33,784,770 39,599,113 44,110,471 45,632,867 44,554,220 45,905,011
4,923,092 5,153,448 5,109,836 5,224,387 5,315,689 5,414,694
2,410,745 1,797,578 2,976,234 3,396,479 3,592,883 3,583,020
4,029,050 3,973,806 4,209,979 4,424,917 4,581,586 4,761,953
2,824,722 2,575,341 2,645,636 2,583,546 2,791,927 2,775,503
2,152,617 2,996,950 3,108,543 2,975,282 2,937,428 3,049,543
1,907,591 388,645 (1,424,183)1,708,860 5,283,676 6,635,209
26,784 989,991 41,673 191,839
2,470,926 2,813,015 2,965,697 3,233,349 3,242,511 2,925,920
586,387 538,405 521,209 521,322 582,148 573,993
81,581,405 90,856,601 97,537,542 102,724,039 108,559,605 112,320,241
71,583 4,065 8,802 8,320 9,864 12,119
(586,387)(538,405)(521,209)(521,322)(582,148)(573,993)
(514,804)(534,340)(512,407)(513,002)(572,284)(561,874)
$81,066,601 $90,322,261 $97,025,135 $102,211,037 $107,987,321 $111,758,367
$1,833,137 $1,888,197 $2,086,682 $2,129,197 $2,322,601 $2,442,140
876,369 48,614 (406,535)1,328,202 2,201,511 1,898,333
489 11,759 110,928
(23,561)
$2,709,995 $1,936,811 $1,680,147 $3,469,158 $4,500,551 $4,451,401
$1,208,429 $18,371,863 $77,724,878 $47,288,089 $29,323,942 $16,543,776
57,139 (931,143)1,097,918 733,587 (97,706)426,067
$1,265,568 $17,440,720 $78,822,796 $48,021,676 $29,226,236 $16,969,843
$5,912,029 $5,374,988 $5,768,893 $6,746,854 $5,818,595 $7,147,144
161
CITY SAN RAFAEL
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2016 2017 2018 2019
General Fund
Nonspendable $476,316 $508,446 $1,008,234 $37,271
Committed
Assigned 16,440,910 14,900,945 11,214,720 11,391,084
Unassigned 1,772,577 1,295,041 1,104,216
Total General Fund $18,689,803 $16,704,432 $12,222,954 $12,532,571
All Other Governmental Funds
Nonspendable $9,449 $302,366 $27,627
Restricted 27,552,245 $25,812,405 73,489,688 53,260,504
Committed 3,799,421 3,491,708 1,754,983 1,901,271
Assigned 119,183 115,103 115,942 118,139
Unassigned
Total all other governmental funds $31,480,298 $29,419,216 $75,662,979 $55,307,541
(a) The change in total fund balance for the General Fund and other governmental funds
is explained in Management's Discussion and Analysis.
($5,000)
$15,000
$35,000
$55,000
$75,000
$95,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Th
o
u
s
a
n
d
s
Total Fund Balance
162
I □
2020 2021 2022 2023 2024 2025 (a)
$7,540 $377,861 $95,279 $78,057 $54,250 $70,759
8,321,000 9,415,000 9,753,000 9,837,000 10,125,000
9,799,140 7,226,153 24,270,840 17,272,274 20,837,172 18,341,628
920,885 664,667 5,686,854 5,377,432
$9,806,680 $16,845,899 $33,781,119 $27,767,998 $36,415,276 $33,914,819
$7,813 $89,761 $182,890 $3,506
34,288,302 $36,043,515 36,443,519 46,449,334 48,442,445 $48,898,624
1,884,153 1,831,036 1,514,355 4,008,844 8,209,257 4,676,853
120,920 116,842 117,755 119,248 121,562 126,205
(11,118)(70,059)
$36,290,070 $37,991,393 $38,165,390 $50,760,316 $56,776,770 $53,631,623
163
2016 2017 2018 2019
Revenues
Taxes and special assessments $65,866,218 $71,166,891 $74,893,789 $77,101,185
Licenses and permits 2,588,411 2,559,841 2,718,166 2,661,500
Fines and forfeitures 435,829 400,283 384,268 337,680
Use of money and properties 460,206 349,349 654,531 1,583,060
Intergovernmental 13,685,003 8,063,156 8,878,974 15,602,264
Charges for services 14,366,744 13,425,161 14,660,094 15,166,876
Other revenue 3,208,749 1,842,053 5,219,414 5,158,042
Total Revenues 100,611,160 97,806,734 107,409,236 117,610,607
Expenditures
Current:
General government 11,349,079 10,557,416 10,010,100 12,553,499
Public safety 47,071,166 49,018,153 51,805,708 51,678,876
Public works and parks 14,390,699 16,752,961 17,647,312 15,617,622
Community development 3,670,108 3,759,564 4,051,224 4,988,260
Culture and recreation 12,048,104 12,646,728 12,823,771 12,468,008
Capital outlay 4,813,757 2,100,926 22,815,967 38,701,047
Capital improvement/special projects 4,826,576 7,403,249
Debt service:
Principal 75,172 175,172 280,172 495,172
Interest and fiscal charges 277,263 271,263 1,005,636 2,356,207
Total Expenditures 98,521,924 102,685,432 120,439,890 138,858,691
Excess (deficiency) of revenues over
(under) expenditures 2,089,236 (4,878,698)(13,030,654)(21,248,084)
Other Financing Sources (Uses)
Issuance of debt 46,565,800
Proceeds from sale of capital assets
Transfers in 7,533,364 9,287,007 68,351,964 15,482,297
Transfers (out)(6,582,555)(8,454,762)(68,373,222)(14,280,034)
Total other financing sources (uses)950,809 832,245 46,544,542 1,202,263
Net Change in fund balances $3,040,045 ($4,046,453) $33,513,888 ($20,045,821)
Debt service as a percentage of
noncapital expenditures 0.4%0.5%1.3%2.8%
CITY OF SAN RAFAEL
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
164
Fiscal Year Ended June 30,
2020 2021 2022 2023 2024 2025
$76,410,697 $86,347,728 $93,604,982 $96,373,395 $98,481,864 $100,959,147
3,047,144 3,000,666 3,077,355 3,002,122 3,614,566 3,346,342
350,388 219,030 296,300 228,966 259,792 297,212
1,537,869 667,104 (1,597,714) 1,227,353 4,561,170 4,504,218
9,287,181 16,859,749 34,239,157 28,590,886 16,628,881 16,902,414
13,834,843 15,065,363 13,315,014 15,825,770 17,458,089 16,182,343
2,309,226 1,875,299 4,199,820 2,322,859 4,048,979 2,019,923
106,777,348 124,034,939 147,134,914 147,571,351 145,053,341 144,211,599
16,689,526 12,426,899 17,716,666 13,858,624 15,976,001 19,156,876
50,071,531 54,363,872 58,397,721 58,673,878 59,858,026 67,101,074
17,453,823 15,110,972 16,495,547 19,535,588 19,174,722 21,784,203
5,276,887 6,270,129 5,736,213 5,190,246 6,276,150 6,363,809
11,179,410 9,700,739 11,319,546 12,664,282 12,521,303 13,222,302
25,984,748 13,635,066 17,345,454 23,536,840 16,589,427 14,168,159
618,316 2,563,711 2,829,057 3,044,551 3,760,071 3,794,498
2,482,778 2,443,476 2,512,515 2,241,875 2,100,354 2,034,131
129,757,019 116,514,864 132,352,719 138,745,884 136,256,054 147,625,052
(22,979,671) 7,520,075 14,782,195 8,825,467 8,797,287 (3,413,453)
23,999 2,518,949
1,000,000
13,797,526 7,549,590 6,441,764 14,576,818 11,679,112 9,187,478
(12,585,216) (6,329,123) (5,114,742) (16,820,480) (8,331,616) (11,419,629)
1,236,309 1,220,467 2,327,022 (2,243,662) 5,866,445 (2,232,151)
($21,743,362) $8,740,542 $17,109,217 $6,581,805 $14,663,732 ($5,645,604)
3.0% 4.9% 4.6% 4.6% 4.9% 4.4%
165
CITY OF SAN RAFAEL
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct
Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b)
2016 $8,511,358,216 $2,221,843,976 $263,830,302 $108,982,883 $11,106,015,377 $400,942,059 $11,506,957,436 $11,506,957,436 0.11672%
2017 9,025,896,811 2,390,814,514 267,468,956 135,689,202 11,819,869,483 423,545,667 12,243,415,150 12,243,415,150 0.11693%
2018 9,522,645,933 2,532,439,852 276,751,912 128,305,868 12,460,143,565 417,902,554 12,878,046,119 12,878,046,119 0.11709%
2019 10,042,494,232 2,681,917,170 285,601,803 107,472,477 13,117,485,682 409,129,431 13,526,615,113 13,526,615,113 0.11742%
2020 10,545,909,554 2,850,424,603 293,144,677 127,151,762 13,816,630,596 442,888,708 14,259,519,304 14,259,519,304 0.11724%
2021 11,011,781,157 2,956,073,592 305,080,963 143,953,920 14,416,889,632 460,690,899 14,877,580,531 14,877,580,531 0.11734%
2022 11,516,548,822 3,109,589,216 311,491,969 138,527,146 15,076,157,153 463,320,122 15,539,477,275 15,539,477,275 0.11734%
2023 12,306,902,659 3,227,380,341 332,424,829 156,067,190 16,022,775,019 492,746,700 16,515,521,719 16,515,521,719 0.11746%
2024 13,055,127,289 3,411,495,113 346,407,421 135,515,797 16,948,545,620 532,247,366 17,480,792,986 17,480,792,986 0.11774%
2025 13,527,244,928 3,535,571,393 372,517,544 142,174,173 17,577,508,038 513,218,891 18,090,726,929 18,090,726,929 0.11766%
(a)
(b)
Data Source: Marin County Assessor 2015/16 - 2024/25 Combined Tax Rolls
The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus
any local over-rides. These values are considered to be full market values.
California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the
taxing entities within a tax rate area.
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mi
l
l
i
o
n
s
Unsecured Property Secured Property
166
-.. ■-----------~
I --
Fiscal School Misc. Special
Year City County (1)Districts Districts Total
2016 0.154 0.295 0.7846 0.0695 1.3028 0.11672%
2017 0.154 0.295 0.8251 0.0553 1.3291 0.11693%
2018 0.154 0.295 0.8127 0.0661 1.3275 0.11709%
2019 0.154 0.295 0.8495 0.0650 1.3635 0.11742%
2020 0.154 0.295 0.8289 0.0635 1.3414 0.11724%
2021 0.154 0.295 0.8221 0.0678 1.3389 0.11734%
2022 0.154 0.295 0.7995 0.0678 1.3160 0.11734%
2023 0.154 0.295 0.8006 0.0667 1.3160 0.11746%
2024 0.154 0.295 0.8016 0.0657 1.3160 0.11774%
2025 0.154 0.295 0.8173 0.0612 1.3272 0.11766%
Notes:
(1)
Data Source: Marin County Assessors Office 2015/16 - 2024/25 Tax Rate Tables
CITY OF SAN RAFAEL
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Total
Direct
Like other cities, San Rafael includes several property tax rate areas with different rates. A mean
average is indicated.
167
CITY OF SAN RAFAEL
PROPERTY TAX RATES
DIRECT & OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS (RATE PER $100 OF ASSESSED VALUE)
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Dixie School Bonds 2000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.02920 0.02520 0.00000
Marin Community College Bonds 0.01650 0.01420 0.03380 0.03390 0.02690 0.02650 0.02750 0.02580 0.02450 0.02370
Marin Healthcare Bond 0.02350 0.00930 0.02010 0.01900 0.01750 0.02180 0.02180 0.02070 0.01970 0.01520
Miller Creek School Bonds 0.04170 0.03830 0.02090 0.03450 0.03280 0.03030 0.01950 0.01830 0.01810 0.01840
Ross Elementary School 0.06150 0.06030 0.06190 0.06180 0.05710 0.05800 0.05760 0.05500 0.05680 0.05660
Ross Valley School Bonds 0.05550 0.05370 0.05680 0.05390 0.05270 0.05190 0.04870 0.05260 0.04100 0.03030
San Rafael Elementary Bonds 0.02570 0.05350 0.05030 0.07290 0.07050 0.06950 0.07400 0.06860 0.09580 0.09340
San Rafael High Bonds 0.04710 0.07100 0.05680 0.06170 0.06000 0.05830 0.04630 0.05030 0.07730 0.07250
Tamalpais Union High School 0.03130 0.02880 0.02690 0.02580 0.02390 0.02260 0.02060 0.01950 0.01750 0.07100
Total Direct & Overlapping Tax Rates 1.30280 1.32910 1.32750 1.36350 1.34140 1.33890 1.31600 1.34000 1.37590 1.32720
City's Share of 1% Levy Per Prop 13 0.12233 0.12233 0.12233 0.12232 0.12232 0.12231 0.12231 0.12231 0.12231 0.12231
Total Direct Rate 0.11672 0.11693 0.11709 0.11742 0.11724 0.11734 0.11734 0.11746 0.11774 0.11766
Notes:
Data Source: Marin County Assessors Office 2015/16 - 2024/25 Tax Rate Tables
(1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared
by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are
charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
168
CITY OF SAN RAFAEL
PRINCIPAL PROPERTY TAX PAYERS
CURRENT FY 2024/25 AND FY 2015/2016
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
California Corporate Center ACQ LLC $327,142,477 1.81% $138,587,517 1.20%
MGP XI Northgate LLC 238,888,198 1.32%
Kaiser 153,852,645 0.85%
NCP Multifamily LLC 118,536,664 0.66%
Pur San Rafael LLC 112,435,767 0.62%
State of CA Dept of Trans 75,547,957 0.42%
Bre Properties, Inc 71,371,069 0.39%
South Valley Apartments LLC 60,327,158 0.33%
Lofts Albert Park LLC 59,802,811 0.33%
1201 Fifth Avenue LLC 73,801,840 0.41%
Northbay Properties II 44,273,257 0.38%
Regency Center II Assoc LP 43,760,844 0.40%
Bay Apartment Communities Inc 42,312,980 0.37%
Northgate Mall Associates 137,532,142 1.20%
33 North Associates LLC 38,331,984 0.33%
MPB Associates LLC 51,207,486 0.45%
Sutter Health 51,869,712 0.45%
Barbara Fasken Trust 41,837,131 0.36%
Marin Sanitary Service 40,629,687 0.35%
Subtotal $1,291,706,586 7.14% $630,342,740 5.48%
Total Net Assessed Valuation:
Fiscal Year 2024-2025 $18,091,389,911
Fiscal Year 2015-2016 $11,506,957,436
FY 2024-2025 FY 2015-2016
169
Delinquent taxes
Fiscal as a Percent of
Year Rate Levies Allocations Collections Apportionments Delinquencies Allocations
2016 1.00 (2)$23,636,093 (2)$23,636,093 (2)0.0%
2017 1.00 (2)25,173,651 (2)25,173,651 (2)0.0%
2018 1.00 (2)26,088,961 (2)26,088,961 (2)0.0%
2019 1.00 (2)27,718,712 (2)27,718,712 (2)0.0%
2020 1.00 (2)28,709,606 (2)28,709,606 (2)0.0%
2021 1.00 (2)29,762,184 (2)29,762,184 (2)0.0%
2022 1.00 (2)31,129,632 (2)31,129,632 (2)0.0%
2023 1.00 (2)29,914,556 (2)29,914,556 (2)0.0%
2024 1.00 (2)31,688,389 (2)31,688,389 (2)0.0%
2025 1.00 (2)32,808,865 (2)32,808,865 (2)0.0%
Notes:
(1)Includes deductions for County property tax administration.
(2)Information not applicable. All general purpose property taxes are levied by the county and allocated
to other governmental entities.
CITY OF SAN RAFAEL
PROPERTY TAX LEVIES AND COLLECTIONS (1)
LAST TEN FISCAL YEARS
6
9.1669481
12.333896
15.500844
18.667792
21.83474
25.001688
28.168636
31.335585
34.502533
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mi
l
l
i
o
n
s
Allocations Apportionments
170
____.
-
-.,., ----------..... ~
-....,
-.,.,
-+-_..__
CITY OF SAN RAFAEL
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Pension Lease Lease and
Fiscal Note Obligation Revenue SBITA
Year Payable Bonds Bonds Liabilities Total
2016 $378,495 $4,490,000 $4,868,495
2017 303,323 4,390,000 4,693,323
2018 1,308,951 4,185,000 $53,612,097 59,106,048
2019 1,233,779 3,765,000 53,104,153 58,102,932
2020 1,084,462 3,320,000 52,596,209 57,000,671
2021 905,751 2,845,000 50,178,265 $5,734,584 59,663,600
2022 890,555 2,340,000 47,600,321 7,220,147 58,051,023
2023 687,158 1,805,000 44,852,378 6,919,980 54,264,516
2024 502,689 1,240,000 41,909,435 8,823,671 52,475,795
2025 329,583 640,000 38,756,491 8,154,498 47,880,572
Parking Total Percentage
Fiscal Services Note Primary of Personal Per
Year Bonds Payable Total Government Income (a) Capita (a)
2016 $5,692,853 $48,204 $5,741,057 $10,609,552 0.38% $229.11
2017 5,433,577 41,388 5,474,965 10,168,288 0.35% 210.20
2018 5,164,303 34,572 5,198,875 64,304,923 2.04% 1,224.65
2019 4,890,027 27,755 4,917,782 63,020,714 2.00% 1,194.00
2020 4,605,753 20,939 4,626,692 61,627,363 1.87% 1,101.71
2021 4,316,478 14,123 4,330,601 63,994,201 1.89% 1,143.12
2022 4,017,203 7,307 4,024,510 62,075,533 1.64% 977.66
2023 3,707,928 489 3,708,417 57,972,933 1.43% 854.39
2024 3,388,653 0 3,388,653 55,864,448 1.36% 816.49
2025 3,059,378 0 3,059,378 50,939,950 N/A N/A
Data Sources:City of San Rafael
State of California, Department of Finance (population)
U.S. Department of commerce, Bureau of the Census (income)
(a) See Schedule of Demographic and Economic Statistics for personal income and population data.
Business-Type Activities
0
10
20
30
40
50
60
70
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mi
l
l
i
o
n
s
Total Governmental
Total Business-Type
171
C
•
CITY OF SAN RAFAEL
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 2025
2024-25 Assessed Valuation:18,062,154,647
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2025 % Applicable (1) Debt 6/30/2025
Marin Community College District $537,150,000 17.077% $91,729,106
San Rafael High School District 286,188,156 78.643% 225,066,952
Tamalpais Union High School District 228,290,000 0.061% 139,257
Miller Creek School District (Formerly Dixie School District)26,459,820 66.778% 17,669,339
Ross School District 14,156,071 1.175% 166,334
Ross Valley School District 37,231,160 0.010%3,723
San Rafael School District 194,522,189 83.944% 163,289,706
Marin Healthcare District 462,540,000 20.389% 94,307,281
Marin Emergency Radio Authority Parcel Tax Obligations 28,535,000 17.054% 4,866,359
City of San Rafael 1915 Act Bonds 893,500 100.000% 893,500
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $598,131,557
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Marin County Certificates of Participation 68,945,000 17.054% $11,757,880
Marin County Pension Obligation Bonds 28,700,000 17.054% 4,894,498
Marin Community College District Certification of Participation 9,922,080 17.077% 1,694,394
San Rafael School District General Fund Obligations 2,235,000 83.944% 1,876,148
City of San Rafael General Fund Obligations 37,579,583 100.000% 37,579,583 (2)
City of San Rafael Pension Obligations 640,000 100.000% 640,000
City of San Rafael Lease Liability 6,224,658
City of San Rafael SBITA Liability 1,929,841
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $66,597,002
Less: City of San Rafael obligations supported by enterprise revenues 3,065,000
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $63,532,002
TOTAL GROSS DIRECT DEBT 46,374,082
TOTAL NET DIRECT DEBT 43,309,082
TOTAL OVERLAPPING DEBT 618,354,477
GROSS COMBINED TOTAL DEBT 664,728,559 (3)
NET COMBINED TOTAL DEBT 661,663,559
(2) Includes $329,583 PG&E notes.
Ratios to 2024-25 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 3.31%
Total Gross Direct Debt ($46,374,082)0.26%
Total Net Direct Debt ($43,309,082)0.24%
Gross Combined Total Debt 3.68%
Net Combined Total Debt 3.66%
Data Source: Avenu Insights & Analytics, California Municipal Statistics, Inc.
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable
percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries
of the city divided by the district's total taxable assessed value.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease
172
ASSESSED VALUATION:$18,062,154,647
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)$677,330,799
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:39,726,075
LEGAL BONDED DEBT MARGIN $637,604,724
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2016 $431,510,904 $4,868,495 $426,642,409 1.14%
2017 459,128,068 4,693,323 454,434,745 1.03%
2018 482,926,729 59,106,048 423,820,681 13.95%
2019 507,248,067 58,102,932 449,145,135 12.94%
2020 534,731,974 57,000,671 477,731,303 11.93%
2021 557,909,270 53,929,016 503,980,254 10.70%
2022 582,730,398 50,830,876 531,899,522 9.56%
2023 619,332,064 47,344,536 571,987,528 8.28%
2024 655,529,737 43,652,124 611,877,613 7.13%
2025 677,330,799 39,726,075 637,604,724 6.23%
NOTE: (a)
Source: City of San Rafael's Finance Department
CITY OF SAN RAFAEL
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2025
California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in
basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is
one-fourth of that value.
173
CITY OF SAN RAFAEL
REVENUE BOND COVERAGE
PARKING FACILITY
LAST TEN FISCAL YEARS
Debt Service Requirements
Net Revenue
Fiscal Gross Operating Available for
Year Revenue (1) Expenses (2) Debt Service Principal Interest Total Coverage
2016 $5,226,904 $3,739,321 $1,487,583 $250,000 $201,488 $451,488 3.29
2017 5,279,801 2,425,281 2,854,520 260,000 193,988 453,988 6.29
2018 5,219,721 4,320,695 899,026 270,000 186,188 456,188 1.97
2019 5,425,883 4,283,754 1,142,130 275,000 178,088 453,088 2.52
2020 5,134,901 4,072,433 1,062,468 285,000 169,838 454,838 2.34
2021 3,355,929 3,332,327 23,602 290,000 161,288 451,288 0.05
2022 3,845,683 1,851,746 1,993,937 300,000 152,588 452,588 4.41
2023 4,690,455 3,071,480 1,618,974 310,000 143,588 453,588 3.57
2024 4,562,494 3,551,709 1,010,785 320,000 134,288 454,288 2.22
2025 4,774,104 3,390,555 1,383,549 330,000 124,120 454,120 3.05
Notes: On March 26, 2003, the City Financing Authority issued lease revenue bonds for the design and construction of a new parking facility.
On August 12, 2012, the City Financing Authority refunded the series 2003 lease revenue bonds with series 2012 lease
revenue refunding bonds to take advantage of lower interest rates.
(1) Includes all Parking Facility Operating Revenues and Non-operating Interest Revenue
(2) Includes all Parking Facility Operating Expenses less Depreciation and Interest
Data Source: San Rafael Finance Department Revenue and Expenditure Status Reports
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Coverage
174
I -
CITY OF SAN RAFAEL
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Marin City Personal Per Capita Average
Calendar City County Population Income (2)Personal Unemployment
Year Population (1)Population % of County (in thousands) Income (2) Rate (3)
2015 60,582 258,972 23.39% $2,699,436 $44,558 3.70%
2016 60,842 262,274 23.20% 2,817,497 46,308 3.40%
2017 60,651 263,604 23.01%2,943,227 48,374 3.30%
2018 60,046 263,886 22.75%3,152,985 52,509
2.30%
2019 59,807 262,879 22.75%3,156,708 52,781
2.20%
2020 59,016 257,774 22.89%3,301,286 55,938
6.70%
2021 60,560 257,135 23.55% 3,390,278 55,982 4.40%
2022 59,681 256,018 23.31% 3,789,444 63,494 2.50%
2023 59,585 254,407 23.42% 4,043,062 67,853 3.10%
2024 59,885 262,321 22.83% 4,097,381 68,420 3.60%
Source: (1) State of California, Department of Finance - Demographic Research Unit. The data represents the City's population as of
January 1, of each year.
(2) US Censue Bureau, most recent American Community Survey
(3) Unemployment Data: California Employment Development Department
0%
5%
10%
15%
20%
25%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City Population as a % of County
Population
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Personal Income (in thousands)
0
10000
20000
30000
40000
50000
60000
70000
80000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Per Capita Personal Income
0%
1%
2%
3%
4%
5%
6%
7%
8%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Average Citywide Unemployment Rate
175
I I I
CITY OF SAN RAFAEL
PRINCIPAL EMPLOYERS
FISCAL YEAR 2024-2025
LAST TEN CALENDAR YEARS
Employer #(A) #(A) #(A) #(A)
County of Marin 1690 5.77% 2505 1.96% 2,436 1.90% 2,366 1.84%
Kaiser Permanente 1500 5.12% 902 0.71% 2,339 1.83% 2,339 1.82%
San Rafael Elementary/High Schools Dist(s) 750 2.56% 700 0.55% 700 0.55% 700 0.55%
Managed Health Network 500 1.71% - - - - - -
The Permanente Medical Group Inc 411 1.40% - - - - - -
The Pasha Group 400 1.37% - - - - - -
Marin County Office of Education 360 1.23% - - - - - -
City of San Rafael 416 1.42% 416 0.33% 420 0.33% 412 0.32%0.00%
Dominican University of California 295 1.01% 302 0.24% 394 0.31% 394 0.31%
Ghilotti Bros., Inc.290 0.99% 298 0.23% 298 0.23% 298 0.23%
BioMarin Pharmaceutical Inc.249 0.85% 950 0.74% 950 0.74% 950 0.74%
Totals 5,283 23.80% 4,718 5.66% 8,704 6.78% 9,120 7.26%
#Number of FTE employees in Marin locations
(A)Percentage of total employment
Data Sources: Employment Development Department, Marin County, North Bay Business Journal (Annual Book of Lists), & City of San Rafael
Adopted Budget FY24-25.
2023 2022
Note: From the EDD website, it shows that the Total Average 2024 Employment in the City of San Rafael was 29,300 of which it is
used as the denominator for the 2024 percentages are calculated.
20212024
176
#(A) #(A) #(A) #(A) #(A) #(A)
2,358 1.88% 2,317 7.15% 2,305 7.29% 2,283 7.22% 2,206 6.73% 2,194 6.71%
2,059 1.64% 2,014 6.22% 2,092 6.62%2,061 6.52% 662 2.02% 1,575 4.82%
700 0.56% 700 2.16% 700 2.22% 700 2.22% 650 1.98% 650 1.99%
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
405 0.32% 410 1.27% 410 1.30% 454 1.44% 577 1.76% 581 1.78%
394 0.31% 421 1.30% 319 1.01% 456 1.44% 485 1.48% 422 1.29%
298 0.24% - - 175 0.55% 175 0.55% 150 0.46% - -
950 0.76% 950 2.93% - - - - - - - -
9,006 27.80% 6,663 21.09% 7,933 25.10% 5,314 16.20% 5,620 17.19% 6,025 19.37%
l
2020 201520162019 20172018
177
CITY OF SAN RAFAEL
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
General Government 60.61 62.11 60.11 63.11 62.11 61.41 63.69 60.69 63.69 85.40
Public Safety 175.75 176.55 175.35 175.65 175.30 181.50 185.00 185.00 187.00 175.00
Public Works and Parks 62.00 63.00 66.67 66.00 68.00 69.00 70.00 70.00 72.00 66.00
Community Development 19.80 20.00 21.00 22.00 21.75 21.75 23.00 24.00 27.00 24.00
Culture and Recreation 84.25 84.35 87.35 85.82 78.07 78.07 78.07 83.07 66.65 65.94
Total 402.41 406.01 410.48 412.58 405.23 411.73 419.76 422.76 416.34 416.34
Data Source: City of San Rafael's Finance Department
0
50
100
150
200
250
300
350
400
450
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
FTE's
General Government Public Safety Public Works and Parks Community Development Culture and Recreation
179
■ ■ ■ ■ ■
CITY OF SAN RAFAEL
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2016 2017 2018 2019
Function/Program
Public safety:
Fire:
Inspection permit issued 198 233 186 123
Police:
Police calls for service 57,026 53,567 51,013 47,919
Law violations:
Part I crimes 2,523 2,392 2,326 1,893
Physical arrests (adult and juvenile)3,453 2,526 2,019 1,923
Traffic violations 3,252 3,341 2,758 2,944
Parking violations 34,803 36,169 36,208 40,407
Public works
Street resurfacing (miles) (Eng Div)6.76 2.32 2.50 4.30
Potholes repaired N/A N/A N/A N/A
Asphalt used for street repairs (tons)7,195 5,800 4,730 7,200
Culture and recreation:
Recreation class participants 12,725 13,493 12,842 N/A
Recreation Facility Rentals 5,146
Childcare School-Age program participants 7,592
Library:
Items in collection 227,890 117,354 115,812 123,432
Total items borrowed 469,790 327,297 324,452 356,301
Note: N/A denotes information not available.
180
2020 2021 2022 2023 2024 2025
167 207 195 170 191 201
47,968 43,649 42,901 42,693 44,150 46,211
2,988 2,546 2,015 2,024 2,318 1,676
2,527 1,893 1,945 1,769 1,140 1,872
2,342 2,161 1,710 1,734 1,123 2,183
28,029 24,099 30,178 35,399 33,510 34,451
14.30 5.00 11.70 21 12 32
967 1,368 1,024 1,335 1,275 1,226
5,885 3,650 5,100 3,411 11,494 92
N/A N/A N/A
3,875 1,550 1,962 7,001 7,160 7,755
6,270 2,132 3,675 2,660 2,703 2,677
140,610 103,399 95,687 97,117 93,136 90,092
199,903 113,385 169,378 185,800 184,897 120,724
181
CITY OF SAN RAFAEL
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2016 2017 2018 2019
Function/Program
Public safety:
Fire stations 6666
Police stations 1111
Police Fleet
Public works
Miles of streets 173 173 173 173
Street lights 4,435 4,435 4,435 4,435
Parking District lights
Traffic Signals 89 89 89 89
Culture and recreation:
Community services:
City parks 20 20 20 20
City parks acreage 42424242
Playgrounds 14 14 14 14
City trails 20 20 20 20
Community gardens 1111
Cultural Art Centers
Community centers 4444
Senior centers 0000
Sports centers 0000
Performing arts centers 0000
Swimming pools 1111
Tennis courts 10 10 10 10
Basketball Courts 5555
Baseball/softball diamonds 5555
Soccer/football fields 2222
Library:
City Libraries 2222
Wastewater:
Miles of sanitary sewers 145 145 145 145
Data Source: City of San Rafael's Public Works Department
182
2020 2021 2022 2023 2024 2025
666666
111111
173 173 173 173 173 173
4,435 4,435 4,448 4,448 4,448 4,448
90 90 90 90 90 90
24 24 24 24 23 23
99 99 99 99 99 99
14 14 14 14 13 13
20 20 20 20 20 20
222222
111111
333333
000000
000000
000000
111111
10 10 10 10 10 10
666667
555555
222222
222222
145 145 145 145 145 145
183
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED JUNE 30, 2025
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2025
Table of Contents
Page
Memorandum on Internal Control .................................................................................................. 1
Schedule of Other Matters ...................................................................................................... 3
Status of Prior Year Other Matters ......................................................................................... 7
This Page Left Intentionally Blank
MEMORANDUM ON INTERNAL CONTROL
To the City Council of
the City of San Rafael, California
In planning and performing our audit of the basic financial statements of the City of San Rafael (City) as
of and for the year ended June 30, 2025, in accordance with auditing standards generally accepted in the
United States of America, we considered the City’s internal control over financial reporting (internal
control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose
of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion
on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the
effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control was for the limited purpose described in the first paragraph and was
not designed to identify all deficiencies in internal control that might be material weaknesses. In addition,
because of inherent limitations in internal control, including the possibility of management override of
controls, misstatements due to error or fraud may occur and not be detected by such controls. Given these
limitations during our audit, we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we
believe are opportunities for strengthening internal controls and operating efficiency.
Government Auditing Standards require the auditor to perform limited procedures on the City’s response
to the findings identified in our audit and described in the accompanying Schedule of Other Matters. The
City’s response was not subjected to the other auditing procedures applied in the audit of the financial
statements and, accordingly, we express no opinion on the response.
This communication is intended solely for the information and use of management, City Council, others
within the organization, and agencies and pass-through entities requiring compliance with Government
Auditing Standards, and is not intended to be and should not be used by anyone other than these specified
parties.
Pleasant Hill, California
November 20, 2025
1
Accountancy Corporation
3478 Buskirk Ave nue, Su ite 217
Pleasa nt Hill , CA 94523
T 925 .228.2800
, maze@mazeassoc iates.com
w mazeassociates.com
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
2025-01 Purchasing Policy Compliance – Informal Bidding Documentation
Per Section 2.55.260 of the City’s Purchasing Policy – Informal Bids – any contract or purchase not
exceeding $75,000 but more than $5,000, may be made in accordance with the City’s informal bidding
procedures. The policy further requires that documentation supporting the informal bid process be
retained by the City.
During our testing of twenty-five disbursements for fiscal year 2025 to assess compliance with the City’s
purchasing policy, we noted that the City was unable to provide supporting documentation demonstrating
adherence to the informal bid process for two disbursements.
We understand that the absence of written documentation was primarily due to staff oversight within the
department responsible for the purchases, as the staff did not retain documentation as part of the process.
However, we recommend that the City establish or reinforce procedures to ensure that all departments
consistently retain documentation supporting informal bidding processes in accordance with the
Purchasing Policy.
Management’s Response:
Management acknowledges the importance of reinforcing procedures to ensure compliance with
the City’s Purchasing Policy, including Informal Bidding requirements. To this end, in
conjunction with an update to the City’s Purchasing Policy, approved by the City Council on May
19, 2025, management has also update Purchasing Procedures guidelines provided to City staff.
These procedures are being further updated to highlight the requirement for the purchasing agent
to retain a record of informal bids received, pursuant to Section 2.55.260 of the Purchasing
Policy.
In addition, with the City’s transition to a new Enterprise Resource Planning (ERP) Financial
system, back-up documentation related to all purchases and contract awards are now uploaded
and verified at the time of setting up a Purchase Order or Contract.
Note, given that Purchase Orders are only required for purchases greater than $10,000, staff will
be reviewing the current threshold requirement ($5,000) related to informal bidding procedures.
3
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE
The following comment represents new pronouncements taking affect in the next few years. We have
cited them here to keep you informed of developments.
EFFECTIVE FISCAL YEAR 2025/26:
GASB 103 – Financial Reporting Model Improvements
The objective of this Statement is to improve key components of the financial reporting model to enhance
its effectiveness in providing information that is essential for decision making and assessing a
government’s accountability. This Statement also addresses certain application issues.
Management’s Discussion and Analysis - This Statement continues the requirement that the basic
financial statements be preceded by management’s discussion and analysis (MD&A), which is presented
as required supplementary information (RSI). MD&A provides an objective and easily readable analysis
of the government’s financial activities based on currently known facts, decisions, or conditions and
presents comparisons between the current year and the prior year. This Statement requires that the
information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview
of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset
and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions.
Furthermore, this Statement stresses that the detailed analyses should explain why balances and results of
operations changed rather than simply presenting the amounts or percentages by which they changed.
This Statement emphasizes that the analysis provided in MD&A should avoid unnecessary duplication by
not repeating explanations that may be relevant to multiple sections and that “boilerplate” discussions
should be avoided by presenting only the most relevant information, focused on the primary government.
In addition, this Statement continues the requirement that information included in MD&A distinguish
between that of the primary government and its discretely presented component units.
Unusual or Infrequent Items - This Statement describes unusual or infrequent items as transactions and
other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are
required to display the inflows and outflows related to each unusual or infrequent item separately as the
last presented flow(s) of resources prior to the net change in resource flows in the government-wide,
governmental fund, and proprietary fund statements of resource flows.
Presentation of the Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net
Position - This Statement requires that the proprietary fund statement of revenues, expenses, and changes
in fund net position continue to distinguish between operating and nonoperating revenues and expenses.
Operating revenues and expenses are defined as revenues and expenses other than nonoperating revenues
and expenses. Nonoperating revenues and expenses are defined as (1) subsidies received and provided,
(2) contributions to permanent and term endowments, (3) revenues and expenses related to financing, (4)
resources from the disposal of capital assets and inventory, and (5) investment income and expenses.
4
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 103 – Financial Reporting Model Improvements (Continued)
In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and
changes in fund net position, this Statement requires that a subtotal for operating income (loss) and
noncapital subsidies be presented before reporting other nonoperating revenues and expenses. Subsidies
are defined as (1) resources received from another party or fund (a) for which the proprietary fund does
not provide goods and services to the other party or fund and (b) that directly or indirectly keep the
proprietary fund’s current or future fees and charges lower than they would be otherwise, (2) resources
provided to another party or fund (a) for which the other party or fund does not provide goods and
services to the proprietary fund and (b) that are recoverable through the proprietary fund’s current or
future pricing policies, and (3) all other transfers.
Major Component Unit Information - This Statement requires governments to present each major
component unit separately in the reporting entity’s statement of net position and statement of activities if
it does not reduce the readability of the statements. If the readability of those statements would be
reduced, combining statements of major component units should be presented after the fund financial
statements.
Budgetary Comparison Information - This Statement requires governments to present budgetary
comparison information using a single method of communication—RSI. Governments also are required
to present (1) variances between original and final budget amounts and (2) variances between final budget
and actual amounts. An explanation of significant variances is required to be presented in notes to RSI.
How the Changes in This Statement Will Improve Financial Reporting
The requirements for MD&A will improve the quality of the analysis of changes from the prior year,
which will enhance the relevance of that information. They also will provide clarity regarding what
information should be presented in MD&A.
The requirements for the separate presentation of unusual or infrequent items will provide clarity
regarding which items should be reported separately from other inflows and outflows of resources.
The definitions of operating revenues and expenses and of nonoperating revenues and expenses will
replace accounting policies that vary from government to government, thereby improving comparability.
The addition of a subtotal for operating income (loss) and noncapital subsidies will improve the relevance
of information provided in the proprietary fund statement of revenues, expenses, and changes in fund net
position.
The requirement for presentation of major component unit information will improve comparability.
The requirement that budgetary comparison information be presented as RSI will improve comparability,
and the inclusion of the specified variances and the explanations of significant variances will provide
more useful information for making decisions and assessing accountability.
5
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2026/27:
GASB 104 – Disclosure of Certain Capital Assets
State and local governments are required to provide detailed information about capital assets in notes to
financial statements. GASB Statement No. 34, Basic Financial Statements—and Management’s
Discussion and Analysis—for State and Local Governments, requires certain information regarding
capital assets to be presented by major class. The objective of this Statement is to provide users of
government financial statements with essential information about certain types of capital assets.
This Statement requires certain types of capital assets to be disclosed separately in the capital assets note
disclosures required by Statement 34. Lease assets recognized in accordance with GASB Statement No.
87, Leases, and intangible right-to-use assets recognized in accordance with GASB Statement No. 94,
Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be
disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription
assets recognized in accordance with GASB Statement No. 96, Subscription-Based Information
Technology Arrangements, also should be separately disclosed. In addition, this Statement requires
intangible assets other than those three types to be disclosed separately by major class.
This Statement also requires additional disclosures for capital assets held for sale. A capital asset is a
capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it
is probable that the sale will be finalized within one year of the financial statement date. Governments
should consider relevant factors to evaluate the likelihood of the capital asset being sold within the
established time frame. This Statement requires that capital assets held for sale be evaluated each
reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with
separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the
carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major
class of asset.
How the Changes in This Statement Will Improve Financial Reporting
The requirements of this Statement will improve financial reporting by providing users of financial
statements with essential information about certain types of capital assets in order to make informed
decisions and assess accountability. Additionally, the disclosure requirements will im-prove consistency
and comparability between governments.
6
CITY OF SAN RAFAEL
MEMORANDUM ON INTERNAL CONTROL
STATUS OF PRIOR YEAR OTHER MATTERS
2024-01 Purchasing Policy Compliance and Clarification of Requirements – Prior Year
Recommendation Not Implemented
2023-02 Purchasing Policy Compliance and Clarification of Requirements - Prior Year
Recommendation Not Implemented
During the current year audit, we followed up on the status of the Other Matter identified on the Status of
Prior Year Other Matters Items 2024-01, 2023-02 and 2022-02. We determined that the City adopted new
purchasing guidelines effective July 1, 2024. Details of the matter are listed below.
Current Status: Implemented.
2022-02 Purchasing Policy Compliance and Clarification of Requirements
The City’s Purchasing Policy should indicate when the use of a purchase order, contract, or both is
required, including any exceptions, as necessary. The City’s Purchasing Policy defines a contract as
including, but not being “limited to, a purchase order, a contract for services, a contract for maintenance,
leasing of property or equipment, an addendum or change order, a letter agreement, a memorandum of
understanding, or memorandum of agreement.” The Purchasing Policy defines a purchase order as “a
standardized form to be utilized in contracts for materials, supplies, labor and equipment.” The
Purchasing Policy does not specify whether a purchase order and a contract are required for all purchases,
but we understand it is the City’s practice to obtain both documents for purchases.
During the fiscal year 2022 audit, we selected twenty-five disbursements for testing of supporting
documentation and compliance with the City’s Purchasing Policy and noted two disbursements for which
the disbursements were supported by a contract, however, they were not supported by a purchase order.
We also noted one disbursement that was supported by a purchase order, but not a contract. For similar
types of transactions tested, we noted that these types of disbursements were supported by both a
purchase order and a contract.
For one of the disbursements noted above, City staff indicated that the staff overseeing the initial project
and contract is no longer with the City and that a purchase order was not created for the vendor and
contract for the project due to a staff oversight. And, for the second disbursement noted above, City staff
indicated that they did not think it was necessary for a purchase order to be created as the vendor is used
for on-call repair sidewalk repair services. Lastly, for the third disbursement noted above, City staff
indicated that the purchase order was created without a contract, due to a staff oversight. Although that
appears reasonable, there does not appear to be such an exemption in the City’s Purchasing Policy for the
use of a contract, purchase order or both. Therefore, the City is not in compliance with the Purchasing
Policy for these purchases.
We recommend that the City ensure all purchases comply with purchase documentation requirements and
revise the Purchasing Policy to clarify those requirements to reflect current practices.
Current Status: Implemented.
7
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CITY OF SAN RAFAEL
REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED JUNE 30, 2025
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CITY OF SAN RAFAEL
REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2025
Table of Contents
Page
Required Communications .................................................................................................................. 1
Significant Audit Matters:
Qualitative Aspects of Accounting Practices ..................................................................... 1
Difficulties Encountered in Performing the Audit ............................................................. 3
Corrected and Uncorrected Misstatements ......................................................................... 3
Disagreements with Management ....................................................................................... 3
Management Representations .............................................................................................. 3
Management Consultations with Other Independent Accountants ................................... 3
Other Audit Findings or Issues ............................................................................................ 4
Other Matters .............................................................................................................................. 4
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REQUIRED COMMUNICATIONS
To the City Council of
the City of San Rafael, California
We have audited the basic financial statements of the City of San Rafael (City) for the year ended June
30, 2025. Professional standards require that we provide you with information about our responsibilities
under generally accepted auditing standards and Government Auditing Standards and the Uniform
Guidance, as well as certain information related to the planned scope and timing of our audit. We have
communicated such information in our letter to you dated March 3, 2025. Professional standards also
require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies - Management is responsible for the selection and use of appropriate accounting
policies. The significant accounting policies used by the City are described in Note 1 to the financial
statements. No new accounting policies were adopted, and the application of existing policies was not
changed during the year, except as follows:
The following pronouncements became effective, but did not have a material effect on the financial
statements:
GASB 101 – Compensated Absences
GASB 102 – Certain Risk Disclosures
Unusual Transactions, Controversial or Emerging Areas - We noted no transactions entered into by the
City during the year for which there is a lack of authoritative guidance or consensus. All significant
transactions have been recognized in the financial statements in the proper period.
Accounting Estimates - Accounting estimates are an integral part of the financial statements prepared by
management and are based on management’s knowledge and experience about past and current events
and assumptions about future events. Certain accounting estimates are particularly sensitive because of
their significance to the financial statements and because of the possibility that future events affecting
them may differ significantly from those expected. The most sensitive estimates affecting the City’s
financial statements were:
Estimated Net Pension Liability and Pension-Related Deferred Outflows and Inflows of
Resources: Management’s estimates of the net pension liability and related deferred
outflows/inflows of resources are disclosed in Note 9 to the financial statements and are based on
an actuarial study and accounting valuation determined by the Marin County Employees’
Retirement Association which are based on the experience of the City. We evaluated the key
factors and assumptions used to develop the estimates and determined they are reasonable in
relation to the basic financial statements taken as a whole.
1
Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
, maze@mazeassociates.com
w mazeassociates.com
Estimated Net OPEB Liability and OPEB-Related Deferred Outflows and Inflows of Resources:
Management’s estimates of the net OPEB liability and related deferred outflows/inflows of
resources are disclosed in Note 11 to the financial statements and are based on an actuarial study
determined by a consultant, which is based on the experience of the City. We evaluated the key
factors and assumptions used to develop the estimates and determined they are reasonable in
relation to the basic financial statements taken as a whole.
Estimate of the depreciation: Management’s estimate of depreciation is based on useful lives
determined by management. These lives have been determined by management based on the
expected useful life of assets as disclosed in Note 1K to the financial statements. We evaluated
the key factors and assumptions used to develop the depreciation estimate and determined that it
is reasonable in relation to the basic financial statements taken as a whole.
Estimated Fair Value of Investments: As of June 30, 2025, cash and investments were measured
by fair value, as disclosed in Note 2 to the financial statements. Fair value is essentially market
pricing in effect as of June 30, 2025. These fair values are not required to be adjusted for changes
in general market conditions occurring subsequent to June 30, 2025.
Estimated Long-Term Receivable from San Rafael Sanitation District: Management’s estimate of
the long-term receivable from the District is disclosed in Note 4 to the financial statements and is
based on the District’s estimated liability for pension and post-employment health care benefits
incurred by the City for the District staff, but not yet funded. We evaluated the key factors and
assumptions used to develop the long-term receivable from the District in determining that it is
reasonable in relation to the basic financial statements taken as a whole.
Estimated Claims Liabilities: Management’s estimate of the claims liabilities payable is
disclosed in Note 13 to the financial statements and is based on actuarial studies determined by a
consultant, which are based on the claims experience of the City. We evaluated the key factors
and assumptions used to develop the estimate and determined that it is reasonable in relation to
the basic financial statements taken as a whole.
Estimate of Compensated Absences: Accrued compensated absences which are comprised of
accrued vacation, holiday, and certain other compensating time is estimated using accumulated
unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note
1L to the financial statements. We evaluated the key factors and assumptions used to develop the
accrued compensated absences and determined that it is reasonable in relation to the basic
financial statements taken as a whole.
Estimated Lease Right-of Use Assets, Liabilities, Receivables and related Deferred Inflows of
Resources: Management’s estimate of the lease related right-of use assets, liabilities, receivables
and deferred inflows of resources is disclosed in Note 1R to the financial statements and is based
on the incremental borrowing rate for the related lease. We evaluated the key factors and
assumptions used to develop the lease related right-of use assets, liabilities, receivables and
deferred inflows of resources in determining that it is reasonable in relation to the financial
statements taken as a whole.
2
Estimated Subscription Right-of Use Assets and Liabilities: Management’s estimate of the
subscription related right-of use assets and liabilities is disclosed in Note 1S to the financial
statements and is based on the incremental borrowing rate for the related subscription. We
evaluated the key factors and assumptions used to develop the subscription related right-of use
assets and liabilities in determining that it is reasonable in relation to the financial statements
taken as a whole.
Disclosures - The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements. In addition, none of the misstatements
detected as a result of audit procedures and corrected by management were material, either individually or
in the aggregate, to each opinion unit’s financial statements taken as a whole.
Professional standards require us to accumulate all known and likely uncorrected misstatements identified
during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. We have no such misstatements to report to the City Council.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in a management
representation letter dated November 20, 2025.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves
application of an accounting principle to the City’s financial statements or a determination of the type of
auditor’s opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
3
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
Other Matters
We applied certain limited procedures to the required supplementary information that accompanies and
supplements the basic financial statements. Our procedures consisted of inquiries of management
regarding the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We did not audit the required supplementary
information and do not express an opinion or provide any assurance on the required supplementary
information.
We were engaged to report on the supplementary information that accompanies the financial statements,
but is not required supplementary information. With respect to this supplementary information, we made
certain inquiries of management and evaluated the form, content, and methods of preparing the
information to determine that the information complies with accounting principles generally accepted in
the United States of America, the method of preparing it has not changed from the prior period, and the
information is appropriate and complete in relation to our audit of the financial statements. We compared
and reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
We were not engaged to report on the Introductory and Statistical Sections which accompany the
financial statements, but are not required supplementary information. Such information has not been
subjected to the auditing procedures applied in the audit of the basic financial statements, and
accordingly, we do not express an opinion or provide any assurance them.
******
This information is intended solely for the use of City Council and management and is not intended to be,
and should not be, used by anyone other than these specified parties.
Pleasant Hill, California
November 20, 2025
4
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
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i
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
FOR THE YEAR ENDED JUNE 30, 2025
Table of Contents
Page
INTRODUCTORY SECTION:
Table of Contents .......................................................................................................................................... i
FINANCIAL SECTION:
Independent Auditor’s Report ................................................................................................................. 1
Basic Financial Statements
Balance Sheet ........................................................................................................................................ 5
Statement of Revenues, Expenditures and Changes in Fund Balance ................................................. 6
Notes to the Basic Financial Statements ............................................................................................... 7
Supplementary Information
Schedule of Federal, State, County and Local Awards ...................................................................... 11
Combining Statement of Revenues, Expenditures and Changes in Fund Balance ........................... 12
Schedule of Expenditures by State Categories ................................................................................... 13
Schedule of Claimed Administrative Costs ........................................................................................ 14
Schedule of Claimed Equipment Expenditures ................................................................................ 15
Schedule of Claimed Expenditures for Renovations and Repairs ...................................................... 16
Audited Attendance and Fiscal Reports/Audited Fiscal Reports:
CSPP 4281 – California State Preschool Program ........................................................................... 17
Audited Preschool Reserve Account Activity Report ...................................................................... 24
Notes to the Supplementary Information ............................................................................................ 27
Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards ................................................... 29
Summary of Findings and Questioned Costs ................................................................................ 31
Current Status of Prior Year Findings and Questioned Costs ....................................................... 32
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of San Rafael, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the City of San Rafael Child Development
Program (Program) of the City of San Rafael (City), California, as of and for the year ended June 30,
2025, and the related notes to the financial statements, which collectively comprise the Program’s basic
financial statements as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Program as of June 30, 2025, and the change in financial position for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
As discussed in Note 1, the financial statements present only the Program and do not purport to, and do not
present fairly the financial position of the City as of June 30, 2025, or the change in its financial position for
the year then ended in accordance with accounting principles generally accepted in the United States of
America. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of the financial statements that are free from material misstatement, whether due to fraud or
error.
1
Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228 .2800
, maze@mazeassociates.com
w mazeassociates.com
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Program’s internal control. Accordingly, no such opinion is
expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the basic financial statements that
collective comprise the Program’s basic financial statements. The accompanying Supplementary
Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information is the responsibility of management and
was derived from and relates directly to the underlying accounting and other records used to prepare the
basic financial statements. The information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and certain additional procedures and in conformity with the CDE
Audit Guide, issued by the California Department of Education, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the Supplementary
Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
2
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 20,
2025, on our consideration of the Program’s internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the Program’s internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards in considering
the Program’s internal control over financial reporting and compliance.
Pleasant Hill, California
November 20, 2025
3
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CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
BALANCE SHEET
JUNE 30, 2025
ASSETS
Cash (Note 3) $1,628,235
Total Assets $1,628,235
LIABILITIES AND FUND BALANCE
Accounts payable $38,531
Fund balance, restricted (Note 4) 1,589,704
Total Liabilities and Fund Balance $1,628,235
See accompanying notes to financial statements
5
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2025
REVENUES
Restricted:
State grants:
Current year grants $674,584
CDBG preschool grant (federal grant) 23,000
First Five school readiness grants 24,997
Local grants 14,320
Unrestricted:
Interest 33,684
Parent fees - noncertified children 3,414,126
Other revenue 800
Total Revenues 4,185,511
EXPENDITURES
Certified salaries 117,116
Classified salaries 1,883,042
Employee benefits 1,324,838
Training and instruction 2,730
Office supplies 2,649
Books and supplies 179,288
Utilities and housekeeping services 34,049
Rentals 19,963
Services and other operating expenditures 175,229
Equipment 56,258
Insurance 28,490
Renovations and repairs 10,916
Total Expenditures 3,834,568
CHANGE IN FUND BALANCE 350,943
FUND BALANCE
Beginning of year 1,238,761
End of year $1,589,704
See accompanying notes to financial statements
6
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1 – ORGANIZATION
The City of San Rafael operates the Child Development Program encompassing eight childcare
centers within the City of San Rafael. One of these centers provides day care services to subsidized
families under the Child Development Program funded by the California Department of Education,
which includes the Preschool program. The City is financially accountable for the activities of the
Program. The Program has no employees and substantially all staff services which it requires are
performed by the City's personnel. Costs incurred by the City to provide such services including
compensation, retirement, and other benefit costs are reimbursed by the Program. These basic
financial statements present only the activities of the Program and are not intended to present the
financial position of the City of San Rafael, California, or the results of its operations. The financial
statements of the Program are included as a Special Revenue Fund in the City's financial
statements.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Accounting
The accounting and reporting treatment applied to a fund is determined by its measurement focus.
Governmental funds are accounted for on a spending or “current financial resources” measurement
focus. Accordingly, only current assets and current liabilities are generally included on the balance
sheets. Operating statements of governmental funds present increases (revenues and other financial
sources) and decreases (expenditures and other financial uses) in net current assets.
The Program’s financial activities are accounted for using the modified accrual basis of accounting.
Under this method, revenues are recognized when measurable and available. The City considers all
revenues reported in the governmental funds to be available if the revenues are collected within
sixty days after year-end. Revenues considered susceptible to accrual include charges for services,
federal and state grants, and interest. Expenditures are recognized in the accounting period in which
the liability is incurred, if measurable.
B. Fund Balance
Fund Balance is the excess of all the Program’s assets over all its liabilities.
7
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. The Program
categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation
techniques used to measure fair value into three levels based on the extent to which inputs used in
measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are
observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair
value hierarchy, the measurement is considered to be based on the lowest priority level input that is
significant to the entire measurement.
NOTE 3 – CASH AND INVESTMENTS
The Program’s cash is included in a City-wide cash and investment pool, the details of which are
presented in the City’s Annual Comprehensive Financial Report. The Program pools cash from all
sources with the City of San Rafael so that it can be invested at the maximum yield, consistent with
safety and liquidity, while individual funds can make expenditures at any time. The City’s investment
policy and the California Government Code permit investments in Securities of the U.S. Government
or its agencies, Non-Negotiable Certificates of Deposit, Negotiable Certificates of Deposit, Banker’s
Acceptances, Commercial Paper, the State of California Local Agency Investment Fund (LAIF Pool),
Repurchase Agreements, Medium-Term Corporate Notes, Municipal Securities of the State of
California or any local agencies within California, Municipal Securities (Registered Treasury Notes or
Bonds) of the other 49 states, Mortgage and Asset-Backed Obligations, Supranational Securities and
Money Market/Mutual Funds.
The Program categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical
assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant
unobservable inputs. The City of San Rafael investment pool is not subject to the fair value hierarchy
and therefore not defined as Level 1, Level 2, or Level 3 input.
8
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 4 – FUND BALANCE
Governmental fund balances represent the net current assets of each fund. Net current assets
generally represent a fund’s cash and receivables, less its liabilities.
The Program’s fund balances are classified based on spending constraints imposed on the use of
resources. For programs with multiple funding sources, the Program prioritizes and expends funds
in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the
following hierarchy is ranked according to the degree of spending constraint.
Nonspendable represents balances set aside to indicate items do not represent available, spendable
resources even though they are a component of assets. Fund balances required to be maintained
intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids,
notes receivable, and land held for redevelopment are included. However, if proceeds realized from
the sale or collection of nonspendable assets are restricted, committed or assigned, then
Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors,
laws, regulations, or enabling legislation which requires the resources to be used only for a specific
purpose. Nonspendable amounts subject to restrictions are included along with spendable resources.
Committed fund balances have constraints imposed by formal action of the City Council which may
be altered only by formal action of the City Council. Nonspendable amounts subject to council
commitments are included along with spendable resources.
Assigned fund balances are amounts constrained by the Program’s intent to be used for a specific
purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its
designee and may be changed at the discretion of the City Council or its designee. This category
includes nonspendables, when it is the Program’s intent to use proceeds or collections for a specific
purpose.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or
assigned. This includes the residual general fund balance and residual fund deficits, if any, of other
governmental funds.
NOTE 5 – CONTINGENCIES AND COMMITMENTS
The Program participates in Federal, State and County grant programs that are fully or partially
funded by grants received from other governmental units. Expenditures financed by grants are
subject to audit by the appropriate grantor government. If expenditures are disallowed due to
noncompliance with grantor program regulations, the City may be required to reimburse the grantor
government. As of June 30, 2025, some amounts of grant expenditures have not been audited, but
the City believes that disallowed expenditures, if any, based on subsequent audits will not have a
material effect on the Program or the overall financial condition of the City.
9
SUPPLEMENTARY INFORMATION
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF FEDERAL, STATE, COUNTY AND LOCAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2025
Program
Federal
Assistance
Listing
Number
Pass-Through Identifying
Number
Award
Amount Revenue Expenditures
Federal Awards
US Department of Housing and Urban Development
Pass-through from County of Marin
Community Development Block Grant 14.218 40CDBG24CD452 $23,000 $23,000 $23,000
US Department of Health and Human Services
Child Care and Development Fund 93.575
COVID 19 -- ARPA -- Stabilization Stipend Not available 325,893
COVID 19 -- ARPA -- Stabilization Stipend 004-0045655 24,806
Total Federal Awards $373,699 $23,000 $23,000
State Awards
State of California Department of Education
Child Development Division
State Preschool Program FY2025 CSPP-4281 $530,526 $521,963 $516,336
Cost of Care Award Funds FY2025 Not applicable 152,621 152,621
Total State Awards $683,147 $674,584 $516,336
County Awards
County of Marin
First Five - Preschool CSRI-21-009-11 $24,997 $24,997 $24,997
Total County Awards $24,997 $24,997 $24,997
Local Awards
Marin Child Care Council N/A $14,320 $14,320 $14,320
Total Local Awards $14,320 $14,320 $14,320
Total State, Federal, County and Local Awards $1,096,163 $736,901 $578,653
Pass-through from State of California,
Department of Education
11
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2025
State Preschool
Program Total CDE Non-CDE
(CSPP-4281) CD Contracts Programs Total
REVENUES
Restricted:
State grants:
Current year grants $674,584 $674,584 $674,584
CDBG preschool grant (federal grant) $23,000 23,000
First Five school readiness grants 24,997 24,997
Local grants 14,320 14,320
Unrestricted:
Interest 33,684 33,684
Parent fees - noncertified children 3,414,126 3,414,126
Other revenue 800 800
Total Revenues 674,584 674,584 3,510,927 4,185,511
EXPENDITURES
Certified salaries 117,116 117,116 117,116
Classified salaries 160,516 160,516 1,722,526 1,883,042
Employee benefits 194,276 194,276 1,130,562 1,324,838
Training and instruction 2,730 2,730
Office supplies 2,649 2,649
Books and supplies 21,981 21,981 157,307 179,288
Utilities and housekeeping services 34,049 34,049
Travel and conferences
Rentals 19,963 19,963
Services and other operating expenditures 22,447 22,447 152,782 175,229
Equipment 56,258 56,258
Insurance 28,490 28,490
Renovations and repairs 10,916 10,916
Total Expenditures 516,336 516,336 3,318,232 3,834,568
CHANGES IN FUND BALANCE $158,248 $158,248 $192,695 $350,943
12
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF EXPENDITURES BY STATE CATEGORIES
FOR THE YEAR ENDED JUNE 30, 2025
CSPP-4281
State Preschool
Program Totals
EXPENDITURES:
1000 Certified personnel salaries $117,116 $117,116
Due from State
1100 Teachers' salaries 117,116 117,116
1200 Administration
1300 Supervisors' salaries
1600 Infant educators
2001 Classified personnel salaries $160,516 $160,516
2100 Instructional aides' salaries 160,516 160,516
2300 Clerical and other office salaries
2500 Food services salaries
2600 Transportation salaries
3000 Employee benefits $194,276 $194,276
3200 Payroll taxes (Medicare) 3,744 3,744
3300 Other benefits 64,572 64,572
3400 Health and welfare 2,981 2,981
3600 Workers' compensation insurance 122,979 122,979
4000 Books and supplies $21,981 $21,981
4200 Other books
4300 Instructional materials and supplies 21,981 21,981
4500 Other supplies
4600 Food supplies
5000 Services and other operating expenditures $22,447 $22,447
5100 Lecturer
5200 Travel and conferences
5300 Memberships and dues
5400 Insurance 2,021 2,021
5500 Utilities and housekeeping services 2,485 2,485
5600 Rentals, leases and repairs
5700 Audit expense 11,027 11,027
5800 Other direct services & admin. 6,914 6,914
6000 Capital Outlay
6100 Sites and improvements of sites
6200 Buildings and improvements of buildings
6400 Equipment (program-related)
6500 Equipment replacement (program related)
Depreciation
Costs capitalized as Fixed Assets
TOTAL OF REIMBURSABLE AND
NONREIMBURSABLE EXPENDITURES $516,336 $516,336
We have examined the claims filed for reimbursement and the original records supporting the transactions
recorded under the contracts listed above to an extent considered necessary to assure ourselves that the
amounts claimed by the contractor were eligible for reimbursement, reasonable, necessary, and adequately
supported, according to governing laws, regulations, and contract provisions.
13
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF CLAIMED ADMINISTRATIVE COSTS
FOR THE YEAR ENDED JUNE 30, 2025
CSPP-4281
State Preschool
Program
Administrative Costs
5000 Services and other operating expenses (including audit fees)$22,447
Total Administrative Costs claimed for reimbursement $22,447
14
Capitalized Equipment Expensed on the AUD with Prior Written Approval CSPP-4281
None $0
Subtotal 0
Capitalized Equipment Expensed on the AUD without Prior Written Approval CSPP-4281
None 0
Subtotal 0
Total $0
NOTE: The City's capitalization threshold is $5,000.
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF CLAIMED EQUIPMENT EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2025
15
Capitalized R&R Project Under $10,000 CSPP-4281
None $0
Subtotal 0
Capitalized R&R Project of $10,000 or More with Prior Written Approval CSPP-4281
None 0
Subtotal 0
Capitalized R&R Project of $10,000 or More without Prior Written Approval CSPP-4281
None 0
Subtotal 0
Total $0
NOTE: The City's capitalization threshold is $5,000.
CITY OF SAN RAFAEL CHILD DEVELOPMENT PROGRAM
SCHEDULE OF CLAIMED EXPENDITURES FOR RENOVATIONS AND REPAIRS
FOR THE YEAR ENDED JUNE 30, 2025
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25
California Department of Education Fiscal Year Ending: June 30, 202
Audited 3UHVFKRROReserve Account Activity Report Vendor Code:
Contractor Name:
Section 1 – Prior Year Reserve Account Activity
Beginning Balance (202–2 $8' $Ending Balance):
Plus Transfers to Reserve Account:
202–2Contract No.
Per 202–2
Post-Audit
((1FS 9530
Total Transferred from 202–2 Contracts
Less Excess Reserve to be Billed:
202–2 ((1)6 5HVHUYH%DODQFH$IWHU%LOOLQJ:
6ection 2 – Current Year Reserve Account Activity
Plus Interest Earned This Year on Reserve:
Description Column A
SHU&3$5,6
Column B
Audit Adjustments
Column C
Total per Audit
Interest Earned
6. Less Transfers to Contracts from Reserve:
202–2 Contract No. Column A
SHU&3$5,6
Column B
Audit Adjustments
Column C
Total per Audit
Total Transferred to Contracts
7. Ending Balance:
Description Column A
SHU&3$5,6
Column B
Audit Adjustments
Column C
Total per Audit
Ending Balance on June 30, 202
COMMENTS – If necessary, attach additional sheets to explain adjustments.
AUD 9530A Page 1 of 1 Audit Report Page
2193
City of San Rafael Child Development Program
50,257
64,447
CSPP4281 14,190
14,190
73 73
0
0
0
000
64,520 0 64,520
26
CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
Notes to the Supplementary Information
For the Year Ended June 30, 2025
NOTE 1 – NOTE TO SUPPLEMENTARY INFORMATION
In accordance with the applicable requirements from the Funding Terms and Conditions of the City of
San Rafael’s child development contract with the California Department of Education:
A. Interest Expense
Interest expense is only allowable as a reimbursable cost in certain circumstances when it has been
preapproved by the administering state department or relates to the lease purchase, acquisition, or
repair or renovation of early learning and care facilities owned or leased by the contractor. No
interest expense was claimed as a reimbursable expense for the year ended June 30, 2025.
B. Related Party Rent Expense
All expenses claimed for reimbursement under a related party rent transaction must be supported by
a fair market rental estimate from an independent appraiser, licensed by the California Office of
Real Estate Appraisers. No related party rent expense was claimed as a reimbursable expense for
the year ended June 30, 2025.
C. Bad Debt Expense
Bad debt expense is unallowable unless it relates to uncollected family fees where documentation
of adequate collection attempts exists. No bad debt expense was claimed from a child development
contract for the year ended June 30, 2025.
27
This Page Left Intentionally Blank
INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of San Rafael, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the basic financial statements of the City of San
Rafael Child Development Program (Program) as of and for the year ended June 30, 2025, and have issued
our report thereon dated November 20, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Program's internal
control over financial reporting (internal control) as a basis for designing of audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of Program’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the Program’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the Program’s financial statements will not be prevented, or detected and corrected on a timely basis.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
or significant deficiencies may exist that have not been identified.
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Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
, maze@mazeassociates.com
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Program's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. Our procedures included the applicable audit procedures contained in the California
Department of Education Audit Guide (July 2025) and tests of compliance with the Program
requirements. However, providing an opinion on compliance with those provisions was not an objective
of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance that are required to be reported under Government Auditing Standards.
We have also issued a separate Memorandum on Internal Control dated November 20, 2025, which is an
integral part of our audit and should be read in conjunction with this report.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Program’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Program’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
This report is intended solely for the information and use of the California Department of Education,
management, City Council, others within the City, and federal awarding agencies and pass-through
entities and is not intended to be and should not be used by anyone other than these specified parties;
however, this restriction is not intended to limit the distribution of this report, which is a matter of public
record.
Pleasant Hill, California
November 20, 2025
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CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
SUMMARY OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2025
None noted.
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CITY OF SAN RAFAEL
CHILD DEVELOPMENT PROGRAM
CURRENT STATUS OF PRIOR YEAR FINDINGS
AND QUESTIONED COSTS
For the Year Ended June 30, 2025
None noted.
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INDEPENDENT ACCOUNTANT’S REPORT ON
APPLYING AGREED UPON PROCEDURES FOR
COMPLIANCE WITH THE PROPOSITION 111
2025-2026 APPROPRIATIONS LIMIT INCREMENT
Honorable Mayor and Members of the City Council
City of San Rafael, California
We have performed the procedures enumerated below on the Appropriations Limit Worksheet (Worksheet)
of the City of San Rafael, California, for the year ended June 30, 2026. The City’s management is
responsible for the Worksheet.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the
intended purpose of these procedures, which were suggested by the League of California Cities and
presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, performed solely to assist
you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report
may not be suitable for any other purpose. The procedures performed may not address all the items of
interest to a user of this report and may not meet the needs of all users of this report and, as such, users are
responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and associated findings are as follows:
A. We obtained the Worksheet (Exhibit B to the Resolution) and determined that the 2025-2026
Appropriations Limit of $197,230,566 and annual adjustment factors were adopted by Resolution of
the City Council. We also determined that the population and inflation options were selected by a
recorded vote of the City Council. However, the Resolution indicated that the change in the
population of San Rafael was selected, but the Worksheet shows that the larger adjustment factor of
the change in the population of Marin County was used for the calculation of the 2025-2026
Appropriations Limit.
B. We recomputed the 2025-2026 Appropriations Limit by multiplying the 2024-2025 Prior Year
Appropriations Limit by the Total Growth Factor. We recomputed the Total Growth Factor by
multiplying the population option by the inflation option.
C. For the Worksheet, we agreed the Per Capita Income Factor, City Population Factor and County
Population Factor to California State Department of Finance Worksheets, and the Change in
Assessment Roll for Nonresidential Construction Factor to the Marin County Worksheet.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our
engagement in accordance with attestation standards established by the American Institute of Certified
Public Accountants. We were not engaged to and did not conduct an examination or review engagement,
the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet.
Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures,
other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of management and the City Council and is not
intended to be and should not be used by anyone other than those specified parties; however, this
restriction is not intended to limit the distribution of this report, which is a matter of public record.
Pleasant Hill, California
November 20, 2025