HomeMy WebLinkAboutFY2002-03 Basic Finincial StatementsCity of
San Rafael
San Rafael, California
Basic Financial Statements and
Independent Auditors' Report
For the year ended June 30, 2003
C&L
Caporicci & Larson
Certified Public Accountants
City of San Rafael
Basic Financial Statements
For the year ended June 30, 2003
Table of Contents
Page
FINANCIAL SECTION:
IndependentAuditors' Report.........................................................................................................................:.1
Management's Discussion and Analysis..........................................................................................................3
Basic Financial Statements:
Governmental -Wide Financial Statements
Statementof Net Assets...........................................................................................................................21
Statement of Activities and Changes in Net Assets.............................................................................22
Fund Financial Statements:
Governmental Funds:
BalanceSheet.......................................................................................................................................28
Reconciliation of the Governmental Funds Balance Sheet to the
Government -Wide Statement of Net Assets............................................................................
29
Statement of Revenues, Expenditures and Changes in Fund Balances -
GovernmentalFunds...................................................................................................................30
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Governmental -Wide Statement of
Activities and Changes in Net Assets.......................................................................................31
Proprietary Funds:
Statementof Net Assets.....................................................................................................................34
Combining Statement of Revenues, Expenses and
Changesin Retained Earnings...................................................................................................35
Statementof Cash Flows...................................................................................................................36
Notes to Basic Financial Statements..............................................................................................................37
Required Supplementary Information:
Budgets and Budgetary Accounting.............................................................................................................76
Budgetary Comparison Schedule - General Fund...............................................................................77
Budgetary Comparison Schedule - Redevelopment Agency Fund..................................................78
Budgetary Comparison Schedule - Traffic and Housing Mitigation -
SpecialRevenue Fund........................................................................................................................79
Budgetary Comparison Schedule - Household Hazmat Facility Special Revenue Fund..............80
Budgetary Comparison Schedule - Open Space Capital Projects Fund...........................................81
Marin County Employees' Retirement System - Schedule of Funding Progress..................................81
City of San Rafael
Basic Financial Statements
For the year ended June 30, 2003
Table of Contents, Continued
Page
FINANCIAL SECTION, Continued:
Supplemental Information:
Non -Major Governmental Funds
CombiningBalance Sheet........................................................................................................................88
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................
92
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual:
Recreation Revolving Special Revenue Fund..........................................................................
96
Baypoint Lagoons Assessment District Special Revenue Fund ............................................
97
Gas Tax Special Revenue Fund..................................................................................................98
Childcare Special Revenue Fund...............................................................................................99
Street Maintenance and Cleaning Special Revenue Fund......................................................100
Sewer Maintenance Special Revenue Fund..............................................................................101
Loch Lomond Assessment District Special Revenue Fund...................................................102
Library Special Revenue Fund...................................................................................................103
Public Safety Special Revenue Fund.........................................................................................104
Stormwater Special Revenue Fund...........................................................................................105
Development Services Special Revenue Fund.........................................................................106
Grants Special Revenue Fund....................................................................................................107
Parkland Dedication Special Revenue Fund............................................................................108
Emergency Medical Services Special Revenue Fund..............................................................109
Business Improvement Special Revenue Fund........................................................................110
East Francisco Boulevard Assessment District Debt Service Fund......................................111
Peacock Gap Assessment District Debt Service Fund............................................................112
1915 Act Bonds Debt Service Fund............................................................................................113
Mariposa Assessment District Debt Service Fund..................................................................114
1997 Financing Authority Revenue Bonds Debt Service Fund.............................................115
2003 Authority Revenue Parking Bond Debt Service Fund...................................................116
Capital Improvement Capital Projects Fund...........................................................................117
Bedroom Tax Capital Projects Fund..........................................................................................118
Park Capital Projects Capital Projects Fund.............................................................................119
Internal Service Funds:
Combining Statement of Net Assets................................................................................................122
Combining Statement of Activities and Changes in Net Assets..................................................124
Combining Statement of Cash Flows..............................................................................................126
C&L
Caporicci & Larson
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
of the City of San Rafael
San Rafael, California
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, the discrete component unit, each major fund, and the aggregate remaining fund information of
the City of San Rafael, California (City), as of and for the year ended June 30, 2003, which collectively
comprise the City's basic financial statements as listed in the table of contents. These financial statements
are the responsibility of the City's management. Our responsibility is to express an opinion on these
financial statements based on our audit. We did not audit the financial statements of the San Rafael
Sanitation District (District), which is presented as a discrete component unit in the accompanying financial
statements. Those financial statements were audited by other auditors whose report has been furnished to
us, and our opinion on the basic financial statements, insofar as it relates to the amounts included for the
District in the accompanying basic financial statements, is based on the report of the other auditors.
We conducted our audit in accordance with generally accepted auditing standards in the United States and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
ComptrollerWGeneral of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes Examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall basic financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, the basic financial statements referred to above present fairly, in all material respects, the
financial position of the governmental activities, the business -type activities, each major fund, and the
aggregate remaining fund information of the City as of June 30, 2003, and the respective changes in
financial position and cash flows, where applicable, thereof for the year then ended in conformity with
generally accepted accounting principles in the United States.
As described in Note 1 to the basic financial statements, the City adopted statements of the Governmental
Accounting Standards Board No. 34, Basic Financial Statements -and Management's Discussion and Analysis for
State and Local Governments; No. 37, Basic Financial Statements -and Management's Discussion and Analysis for
State and Local Governments: Omnibus; and No. 38, Certain Financial Statement Note Disclosures.
In accordance with Government Auditing Standards, we have also issued our report dated October 30, 2003, 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 grants. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be read in conjunction with this
report in considering the results of our audit.
Toll Free Ph: (877) 862-2200
Toll Free Fax: (866) 436-0927
Oakland Orange County
180 Grand Ave., Suite 1365 3184-D Airway Avenue
Oakland, California 94612 Costa Mesa, California 92626
Sacramento San Diego
777 Campus Commons Rd., Suite 200 600 'B" Street, Suite 1900
Sacramento, California 95825 San Diego, California 92101
To the Honorable Mayor and Members of the City Council
of the City of San Rafael
San Rafael, California
The accompanying Required Supplementary Information, such as management's discussion and analysis,
budgetary comparison information and other information as listed in the table of contents are not a
required part of the basic financial statements but is supplementary information required by the
Governmental Accounting Standards Board.
We have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the Required Supplementary Information.
However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the City's basic financial statements. The accompanying supplementary information is presented
for purpose of additional analysis and is not a required part of the basic financial statements. The
supplementary information has been subjected to the auditing procedures applied in the audit of the basic
financial statements, and in our opinion, are fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
Oakland, California
October 30, 2003
2
CITY OF SAN RAFAEL
Management's Discussion and.
Fiscal Year Ended June 30, 2003
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, 2003. Please read it in conjunction with the accompanying transmittal
letter, the basic financial statements and the accompanying notes to those financial statements.
Financial Highlights - Primanj Government
Government -Wide Highlights:
Net Assets - The assets of the City exceeded its liabilities at fiscal year ending June 30, 2003 by $226.7
million. Of this amount, $17.2 million was reported as "unrestricted net assets" and may be used to meet
the government's ongoing obligations to citizens and creditors.
Governmental Funds - Expense Activities - During the fiscal year the City's expenses for Goverrunental
Activities and Business -Type Activities ($81.4 million) exceeded total collected revenues ($67.8 million)
by $13.6 million. Excluding Depreciation (non -cash expense of $20.1 million), collected revenues were
$6.5 million above expenses.
Changes in Net Assets -The City's total net assets decreased by $13.6 million in fiscal year 2003. Net assets
of Governmental Activities decreased by $13.9 million, while net assets of the Business -Type Activities
increased by $.3 million.
Fund Highlights:
Governmental Funds - Fund Balances- As of the close of fiscal year 2003, the City's governmental
funds reported combined ending fund balances of $49.5 million, an increase of $6.2 million from the
prior year. Of this total amount, $39.1 million represents reserved fund balances and $ 9.5 million is
designated.
General Fund - The fund balance of the General Fund on June 30, 2003 was $6.5 million, a decrease of
$1.2 million from the prior year. $2.4 million was held in reserve, and 3.9 million is designated to
meet our 10% reserve requirement as defined by the City's Financial Management Policies.
Long -Term Debt:
The City's total outstanding debt increased by $8.5 million (16.3%) during the fiscal year. The key
factor in this increase was the issuance of $7.6 million in lease revenue bonds for the design and
construction of a new public parking garage. Additionally, The Redevelopment Agency issued new
bonds and defeased two bond series previously issued in 1992 and 1995
City Highlights
• A new 3-acre $7 million Public Works Facility was dedicated and occupied by Public Works
Operations, Administration and Engineering staff.
Implementation of new finance and human resources computer systems, as well as significant
progress on replacing the Computer Aided Dispatch (CAD) and records management applications
in the Police and Fire Departments.
• Parkside Child Care Center opened September 2001. The Terra Linda Pool commenced splashing
April 2002.
• As part of the Downtown Vision desirable projects, completed construction of San Rafael City
Plaza, a gathering place for City and other community events.
• Substantial progress made towards completion of General Plan 2020 draft document in fiscal year
2002-2003 with extensive community involvement. The Environmental Impact Report and public
hearing processes commenced in early 2004.
3
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2003
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements,
which are comprised of 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. The City's component units consist of
the following: The Redevelopment Agency of the City of San Rafael (Agency), and the San Rafael Joint Powers
Financing Authority (Authority). These component units are, for practical purposes, departments of the City
and have been included in the basic financial statements as an integral part of the primary government using the
blended method.
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 Government Accounting Standards Board (GASB)
Statement No. 34.
The Statement of Net Assets and the Statement of Activities and Changes in Net Assets report information about the
City as a whole and about its activities. 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 years revenues and expenses are taken into account, regardless of when cash is received or paid.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases in net assets 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 Assets presents information showing how the City's net assets
changed during the year. All changes in net assets 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 Assets and the Statement of Activities and Changes in Net Assets, we separate the City
activities as follows:
Govermnental Activities - Most of the City's basic services are reported in this category, including Public Safety,
Public Works and Parks, Community Development and Redevelopment, Cultural and Recreation and General
Government (finance, human resources, legal, City Clerk and City Manager operations). Property and sales
taxes, user fees, interest income, franchise fees, hotel taxes, business license and property transfer taxes, plus state
and federal grants finance these activities.
Business-TJpe Activities - The City charges a fee to customers to cover all or most of the costs of certain services it
provides. The City s Parking Services program is reported as a business -type activity.
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2003
DiscretehL Presented Component Units - The Government -Wide Financial Statements include not only the City
itself (known as the primary government), but also a legally separate entity, the San Rafael Sanitation District 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 itself.
The Government -Wide Financial Statements can be found on pages 21 through 23 of this report.
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 of the
funds of the City can be divided into three categories: governmental funds, proprietary funds, and
fiduciary funds.
The Fund Financial Statements provide detail information about each of the City's most significant funds, called
Major Funds. The concept of Major Funds, and the determination of which are major funds, was established by
GASB Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, 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 85 through 127 of this report.
Governmental Funds - Governmental funds are used to account for essentially the same functions reported as
govermnental activities in the Government -Wide Financial Statements. However, unlike the Government -Wide
Financial Statements, governmental funds 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 governmental 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 reconciliation's are presented on the page immediately following
each governmental funds financial statements.
The City has thirty governmental funds, of which five 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 five
major funds are - the General Fund, Redevelopment Agency, Traffic and Housing Mitigation, Household
Hazmat Facility and Open Space. Data from the other twenty-five governmental funds are combined into a
single, aggregated presentation. The major funds can be found on pages 28 through 31 of this report.
Individual fund data for each of these non -major governmental funds is provided in the form of combining
statements on pages 88 through 95 of this report.
5
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2003
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. 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 fleet of vehicles, building maintenance, radio
systems, personal computer replacement program, self-insurance for worker's compensation, dental and public
liability, and employee 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 basic proprietary fund financial statements can be found on pages 33 through 36 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 Financial Statements and Fund Financial Statements. The notes to the Basic Financial
Statements can be found on pages 38 through 74 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 major funds
(general, redevelopment agency, traffic and housing mitigation, household hazmat facility and open space). The
other section is a schedule of funding progress for the Marin County Employees' Retirement System. 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 this system. Required Supplementary Information
can be found on pages 75 through 81 of this report.
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2003
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Statement of Net Assets
Net assets are a good indicator of the City's financial position. During this fiscal year, net assets of the City
were $226.7 million, which is a decrease of $13.6 million from the prior year.
The following is the condensed Statement of Net Assets for the fiscal years ended June 30, 2003.
City of San Rafael
Statements of Net Assets
June 30, 2003
(Amounts in Millions)
Assets:
Current assets
Capital assets, net
Total assets
Liabilities:
Current liabilities
Long-term liabilties
Total liabilities
Net Assets:
Invested in capital assets, net of related debt
Restricted
Unrestriced
Total net assets
Governmental Business -Type
Acitivies Activites 'total
$ 61.8 $ 1.1. $ 62.9
223.3 8.5 231.8
285.1 9.6 294.7
10.2
57.7
0.1 10.3
- 57.7
67.9
0.1 68.0
198.0 8.5 206.5
3.0 - 3.0
16.2 1.0 17.2
$ 217.2 $ 9.5 $ 226.7
At June 30, 2003, the largest portion of net assets (91.1 %) consists of the City's investment in capital assets net of
related debt. This component portrays the total amount of funds required to acquire those assets less any related
debt used for such acquisition that is still outstanding. The City uses these capital assets to provide services to
citizens. The decline is total net assets from 2001-2002 to 2002-2003 is largely attributable to a netting of capital
asset acquisition against deprecation expense for the year. Total deprecation for this current year was $20.1
million, while capital asset acquisition totaled $8.9 million, leaving a net change (decline) of $11.2 million.
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 net assets (1.3%) is subject to restrictions imposed by
external parties and their use is determined by those restrictions and agreements. The remainder of net assets,
$17.2 million, may be used to meet the City's ongoing operations.
For the year ended June 30, 2003 the City reported positive balances in all three categories of net assets for
governmental activities. Business -type activities reported positive net assets in capital and unrestricted net assets.
Further analysis and detail regarding net assets can found by reading page 46 of the financial statements
7
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2003
Statement of Activities
The following is the condensed Statement of Activities and Changes in Net Assets for the fiscal years ended
June 30, 2003:
City of San Rafael
Statements of Activities and Changes in Net Assets
For the Fiscal Year Ended June 30, 2003
(Amounts in Millions)
Governmental Business -Type
Acitivies Activites Total
Revenues:
Program revenues $ 20.2 $ 1.8 $
General revenues 45.8 -
Total revenues 66.0 1.8
Expenses
Change in net assets before transfers
Transfers
Net Assets:
Beginning
Ending
(14.1) 0.5
0.2 (0.2)
231.1 9.2
$ 217.2 $ 9.5 $
22.0
(13.6)
240.3
226.7
8
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2003
Governmental Activities
The City's governmental activities decreased net assets by $13.9 million, which represents a 6.0% decline from
last year. Key elements of this change were as follows:
Revenue Highlights
• Property Tax revenues increased by $.5 million or 4.3% in fiscal year 2003 due to higher assessed
property values and new construction.
• Sales tax increased by $.2 million or approximately 1.1% compared to fiscal year 2002. Sales tax
revenues are highly dependent on consumer retail and business related activity in the City and the
slight increase is a reflection of economic uncertainties.
• Other Tax revenues increased by $.02 million or approximately .3% compared to fiscal year 2002.
The increases were primarily due to increases in business license and property transfer taxes, offset
by decreases in transient occupancy and franchise taxes.
• Investment income, which is a combination of interest earnings and change in fair value of
investments, also decreased by $.6 million, or approximately 24.1 % over the prior fiscal year.
Interest earnings were lower due to declining interest rates throughout the market.
Governmental Activities - Revenues
Governmental Activities
Revenues by Source
June 30, 2003
15% ■ 3% ❑ 19%
13 5 % ••
El 18% ®26%
❑ 14%
❑ Property Taxes
[EMS ales Taxes
❑ Other Taxes
El C harges for Services
p Miscellaneous
Capital Grants and
Contributions
■ Investment earnings
9
CITYOFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2003
Governmental Activities - Expenses
®1 " '' °'
❑ 4.7%
u .34.v"/o
Governmental Activities
Expenses by Function
June 30, 2003
Ei5.1% MnR A%,
38.0%
® General Government
Public Safety
Public works and parks
❑ Community development
® Culture and recreation
Debt Service
Total expenses for governmental activities were $76.0 million (not including interest on long-term debt of $4.1
million). Program revenues offset total expenditures as follows:
• Those who directly benefited from programs contributed $11.6 million in charges for services.
• A total of $10.1 million in capital projects was funded by outside agencies through capital grants
and contributions.
As a result, total expenditures that were funded by tax revenues; investment income and other general revenues
were $54.3 million.
Functional expenses for the years ended June 30, 2003 were as follows (amount in millions):
City of San Rafael
Expenses by Function
For the fiscal year ended June 30, 2003
Function Amount Percent of Total
General government $ 5,555,915
6.9%
Public safety 30,476,353
38.0%
Public works and parks 27,237,899
34.0%
Community development 3,727,315
4.7%
Culture and recreation 9,055,681
11.3%
Interest on debt 4,082,760
5.1 %
Total expenses $ 80,135,923
100.0%
10
CITYOFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2003
Business -Type Activities
Net assets for Business -Type Activities were $9.5 million, an increase of $.3 million from the prior fiscal year.
Parking services is the city's only business -type activity and income is derived from program revenues of $1.8
million. Program revenues include parking meter coin at $.9 million, and parking garage hourly parking at $.1
million. Revenues also include parking and non -vehicle code fines totaling $.7 million and $.1 million for garage
parking permits. Total expenses for parking services were $1.2 million during fiscal year 2002-2003.
FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
Governmental Funds
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, unreserved 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 the end of the current fiscal year, the City's governmental funds reported combined ending fund balances
of $49.5 million. Approximately, $0.9 million of this amount constitutes unreserved and undesignated fund
balance, which is available for spending at the government's discretion. The remainder of fund balance is
reserved to indicate that it is not available for spending because it has already been legally committed.
General Fund - The General Fund is the primary operating fund of the City.
At the end of the current fiscal year, unreserved fund balance of the General Fund was $4.1 million, while total
fund balance reached $6.5 million. $3.8 million is held as part of the 10% reserve for emergencies and cash flow
cycles as defined in San Rafael's Financial Management Policies. As a measure of the General Fund's liquidity, it
may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures.
Unreserved fund balance represents 9.8% of total General Fund expenditures including transfers out, while total
fund balance represents 15.2% of that same amount.
The available fund balance of the City's General Fund decreased by $.8 million during the current fiscal year.
This decrease resulted from:
• Public Safety over expending their budgets, due to overtime and staffing costs needed to fill schedules
for injured workers.
• Declines in major revenues from the prior year, particularly sales and transient occupancy taxes.
Redevelopment Agency Fund - The Redevelopment Agency is responsible for assisting in the clearance and
rehabilitation of areas determined to be in a declining condition in the City. The Agency's operations are funded
primarily by the issuance of debt, which is expected to be repaid out of property tax increment revenue
generated by increased in property assessed values in the redevelopment areas.
The Redevelopment Agency Fund was established to account for capital improvement projects related to the
various redevelopment areas. At the end of fiscal year 2003, the reserved fund balance was $21.7 million, an
increase of $8.1 million from the prior year. The increase is primarily related to transferring bond proceeds from
the San Rafael Financing Authority to the fund for the design and construction of a new public parking garage.
The entire fund balance as of June 30, 2003 was reserved for future capital project and housing programs.
11
CITYOFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2003
Proprietary Funds
The City's proprietary funds provide the same type of information found in the Government -Wide Financial
Statements, but in more detail. As discussed in the Business -Type Activities previously, the City's net assets
increased by $.3 million as a result of operations in the Parking Services fund.
GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended budget totaled $36.4 million, including a decrease of $140,783 to the originally adopted
budget. The amendments can be briefly summarized as follows:
1. Decreases in the following budgets:
Public Safety $21,777
Public Works and Parks $40,762
Community Development/Redevelopment $27,263
Culture and Recreation $39,575
Capital Outlay $19,101
2. hicrease of $7,695 in the General Government budget
During the year, however, revenues exceeded budgetary estimates and expenditures exceeded the budgetary
estimates. Overall, revenues exceeded expenditures by $2.3 million. Transfers out exceeded transfers in by $3.5
million.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City's investment in capital assets for its Governmental Activities and Business -Type Activities as of June 30,
2003, amounts to $231.7 million, net of accumulated depreciation of $74.4 million. This investment in capital
assets includes land, buildings, improvements, machinery and equipment, infrastructure 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 total additions
to the City's investment in capital assets for the current fiscal year was $187.5 million, net of accumulated
depreciation and retirements.
Total additions included an adjustment of $191 million (net of accumulated depreciation) for fiscal year 2001-
2002 asset restatements related to infrastructure and other capital assets. This restatement was required under
GASB Statement No. 34, and brings the City's audit into compliance with new financial reporting requirements.
Major capital asset additions during the current fiscal included completion of new Corporation Building,
roadway rehabilitations, land and building improvements, open space acquisition, and new computer systems
for police and finance.
Additional information on the City's capital assets can be found in Note 5 on pages 54 through 57 of this report.
12
CITY OFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2003
Debt Administration
As of June 30, 2003, the City had outstanding debt issues as fisted below. Not included in the following table is
the Community Facilities District No.1 Special Tax Bonds, which are backed by property tax levies against
property owners. The City has no obligation for these bonds. Certain specific revenues back each of the City's
other bonds or General Fund lease payments and carry respectable ratings. The City's long-term obligations for
the fiscal years 2002 and 2003 were as follows:
Governmental Business -type
Activities Activities
2003
2002
Revenue Bonds
$ 10.4
$ 3.3
Bonds
0.7
0.9
Tax Allocation Bonds
44.9
43.5
Redevelopment Note
0.2
0.2
Capitalized Leases
-
0.2
Compensated Absences
4.2
3.9
Total
2003 2002 2003 2002
$ - $ - $ 10.4 $ 3.3
- 0.7 0.9
- 44.9 43.5
- 0.2 0.2
- 0.2
4.2 3.9
Total outstanding debt $ 60.4 $ 52.0 $ - $ - $ 60.4 $ 52.0
During the fiscal year 2003, revenue bonds in the amount of $7.6 million were issued by the San Rafael Financing
Authority to provide funds for the design and construction of a new public parking garage. The bonds are
payable from the lease revenues secured by lease payments made by the City to the Authority for leasing the
City facilities. The bonds bear interest rates ranging from 3.00% to 5.00% and are payable semiannually on
April 1 and October 1 of each year commencing October 1, 2003. Principal payments ranging from $150,000 to
$475,000 are due April 1 of each year and mature in 2033.
ECONOMIC CLIMATE AND NEXT YEAR'S BUDGET
The short-term outlook is not getting any brighter for the next (2003-2004) fiscal year. Financial performance
will likely stagnate for several years, due to State budget threats, slow economic recovery, and expected
increases in costs to the City. Sales taxes have been down for the last two years, and remain flat through the
last six months of 2004. Property taxes remain one area of strength, as the desire to relocate to Marin County
continues to put upward pressure on home values. The future continues to look troubling as staff and the
City Council peer into the future.
The State of California budget deficit was targeted at $38 billion as of May 2003. The Governor has proposed
a $1.5 billion dollar bond, to be ratified by California voters on March 2, 2004. If this bond is successful, the
City can hold out some optimism that our revenue structure may remain largely unchanged. If defeated,
stand by. Services at all levels of government, including cities, will be devastated. One example of significant
loss would be the State ceasing vehicle license backfill dollars, which currently total $2.2 million per year.
The new Governor has proposed a 2004-2005 budget that would shift additional property tax dollars away
from our General Fund. This type of shifting is not new, and depletes another $300,000 or revenues from the
General Fund. In addition, the 2004-2005 budget continues property tax shifts from redevelopment agencies.
Once again, resources that could be used to stimulate the economy and provide jobs are pulled back to help
Sacramento plug its ongoing fiscal mismanagement problem.
13
CITYOFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2003
Anticipating that San Rafael was entering tough times, the City Council amended the 2002-2003 budget in
July of 2002 by eliminating vacant positions in the Public Works and Police Departments, dropping theatre
programming and trimming some operating expenses. Also, the level of spending was reduced for street
paving (by $100,000) and sidewalk replacement (by $281,000). The sum total of the actions in July was $1.5
million to keep the 2002-2003 budget balanced.
The 2003-2005 budget cycle looks to be the City's biggest financial challenge. A summary of the budget
status, impacts and approved Council actions is listed below.
Our Current Year Woes
July 2003 General Fund Gap - FY 2003-2004 = $2.1 million (5% of General Fund)
$2.1 million of actions taken:
• Expenditure reductions - $1.9 million (85% of solution)
Loss of nine positions (including one layoff)
• Closed Library on Mondays; eliminated DARE program; reduced all Departments overtime,
training and travel by 10%
• Revenue increase of $333k (includes charging for engine company inspections, plus increases in
building and planning application fees)
v Budget balanced without State action
December 2003 General Fund Gap reappears- FY 2003-2004 = $2.2 million - Causes:
• First State hit is $1,154,000 ($1,031,000 is initial VLF backfill loss)
• Net loss on FY 2002-2003 - $733,000 (overtime, workers comp, injuries)
• Adjustments to expenses for year of $258,000 (Fire overtime, utilities, dental program)
$1,067,000 of actions taken:
• Expenditure Reductions: - $826k (77% of solution)
• Loss of one position (layoff) and reduction of one position
• Closed City Hall at the Mall, required Youth Theatre to be fully self funded or dropped, Print
Shop reorganized, cut Vehicle replacement funding by 1/2 year
Revenue increase of $191k (includes impact fee on refuse and construction vehicles)
Gap Remains $1,094,000 as of lanuary 2004
Further actions were taken by the City Council in January 2004 to bring the 2003-2004 gap down to $461,000.
This included the reduction of eight additional library hours, and elimination of any remaining general fund
revenues (franchise fees) used to pay for street paving efforts.
For 2004-2005, hosts of budget balancing actions have been taken. The City expects to take further fee increase
or cost reduction measures in the spring of 2004 in order to provide the community and City Council with a
budget that stays within our limited resources.
14
CITYOFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2003
With a continued flat economy (and no real recovery expected until at least 2005) and the State fiscal fiasco,
the community and City Council will be spending countless hours over the next few months reviewing
options and looking at ways of maintaining core services. Employee and community involvement will play a
key role in determining how the City's financial future is shaped.
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 Management Services
Department - Financial Services Division, 1400 Fifth Avenue, Room 204, San Rafael, California 94901.
15
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16
BASIC FINANCIAL STATEMENTS
17
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18
GOVERNMENT -WIDE
FINANCIAL STATEMENTS
19
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20
City of San Rafael
Statement of Net Assets
June 30, 2003
Component
Primary Government
Unit
San Rafael
Governmental
Business -Type
Sanitation
Activities
Activities
Total
District
ASSETS
Current assets:
Cash and investments
$ 38,314,706
s 1,087,279
$ 39,401,985
$ 5,809,232
Cash with fiscal agents
15,132,289
-
15,132,289
-
Receivables:
Accounts
1,689,932
25,513
1,715,445
-
Taxes
4,627,155
-
4,627,155
-
Grants
926,694
-
926,694
-
Interest
292,098
-
292,098
29,406
Loans
797,465
-
797,465
-
Prepaid expenses
-
-
-
25,715
Total cur rent assets
61,780,339
1,112,792
62,891,131
5,864,353
Noncurrent assets:
COP issuance costs, net
-
-
-
67,197
Capital assets:
Nondepreciable assets
88,323,150
7,856,487
96,179,637
1,295,976
Depreciable assets, net
134,951,757
607,930
135,559,687
21,421,072
Total capital assets
223,274,907
8,464,417
231,739,324
22,717,048
Total noncurrent assets
223,274,907
8,464,417
231,739,324
22,784,245
Total assets
285,055,246
9,577,209
294,632,455
28,648,598
LIABILITIES
Current liabilities:
Accounts payable
2,874,139
28,410
2,902,549
131,874
Connection fees payable
-
-
-
14,000
Interest payable
270,376
-
270,376
67,865
Developer bonds payable
58,000
-
58,000
-
Arbitrage payable
358,840
-
358,840
-
Deferred revenue
114,718
6,137
120,855
-
Insurance claims payable - due within one year
1,370,000
-
1,370,000
-
Compensated absences - due within one year
2,813,689
-
2,813,689
-
Long-term debt - due within one year
2,360,775
-
2,360,775
502,010
Total current liabilities
10,220,537
34,547
10,255,084
715,749
Long-term liabilities:
Insurance claims payable - due in more than one year
2,400,733
-
2,400,733
-
Compensated absences - due in more than one year
1,399,448
-
1,399,448
-
Long-term debt - due in more than one year
53,853,823
-
53,853,823
3,326,913
Total long-term liabilities
57,654,004
-
57,654,004
3,326,913
Total liabilities
67,874,541
34,547
67,909,088
4,042,662
NET ASSETS
Invested in capital assets, net of related debt
198,031,181
8,464,417
206,495,598
18,888,125
Restricted
2,933,294
-
2,933,294
417,121
Unrestricted
16,216,2M
1,078,245
17,294,475
5,300,690
Total net assets
$ 217,180,705
$ 9,542,662
$ 226,723,367
$ 24,605,936
See accompanying Notes to Basic Financial Statements
21
City of San Rafael
Statement of Activities and Changes in Net Assets
For the year ended June 30, 2003
Revenues
Charges
Operating
Capital
for
Grants and
Grants and
Functions/Programs
Expenses
Services
Contributions
Contributions
Primary government:
Governmental activities:
General government
$ 5,555,915
$ 1,433,372
$ 534,190
$ -
Public safety
30,476,353
2,530,916
2,069,445
-
Public works and parks
27,237,899
3,072,849
2,630,497
7.14,556
Community development/redevelolnnent
3,727,315
1,691,427
2,500
1,000,000
Culture and recreation
9,055,681
1,688,418
767,068
-
Interest on long-term debt (unallocated)
4,082,760
-
-
-
T'otal governmental activities
80,135,923
12,416,982
6,003,700
1,744,556
Business -type activity:
Parking services
1,245,316
1,810,479
-
-
Total primary government
$ 81,381,239
$ 14,227,461
$ 6,003,700
$ 1,744,556
Component unit:
San Rafael Sanitation District
$ 5,708,208
$ 5,566,610
$ -
$ -
General revenues:
Taxes:
Property taxes
Sale taxes
Special assessments
Motor vehicles
Other
Total taxes
Investment earnings
Miscellaneous
Aid from other governmental agencies
Loss on disposal of assets
Transfers
Total general revenues, loss on disposal of assets and transfers
Change in net assets
Net assets - beginning of year, as restated
Net assets - end of year
See accompanying Notes to Basic Financial Statements
22
Total
Program Governmental
Revenues Activities
Net (Expense) Revenue and
Changes in Net Assets
nary Government
Business -type
Activities Total
$ 1,967,562
$ (3,588,351) $
4,600,361
(25,875,992)
6,447,902
(20,789,997)
2,693,927
(1,033,388)
4,455,486
(4,600,195)
-
(4,082,760)
20,165,238
(59,970,685)
1,810,479
-
—
$ 21,975,717
(59,970,685)
$ 5,566,610
$ (3,388,353) $
(25,875,992)
(20,789,997)
(1,033,388)
(4,600,195)
(4,082,760)
(59,970,685)
565,163 565,163
565,163 (59,405,522)
Component
Unit
San Rafael
Sanitation
District
13,983,697
-
13,983,697
560,269
16,779,878
-
16,779,878
-
3,055,575
-
3,055,575
-
3,317,710
-
3,317,710
-
5,465,495
-
5,465,493
-
42,602,355
-
42,602,355
560,269
1,897,339
17,772
1,915,111
104,358
1,843,458
-
1,843,458
-
-
-
-
141,314
(500,819)
-
(500,819)
-
232,398
(232,398)
-
-
46,074,731
(214,626)
45,860,105
805,941
(13,895,954)
350,537
(13,545,417)
664,343
231,076,659
9,192,125
240,268,784
23,941,593
$ 217,180,705 $
9,542,662
$ 226,723,367 $
24,605,936
23
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24
FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
25
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26
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
General Fund - Accounts for all financial resources and transactions except those required to be accounted
for in other funds.
Redevelopment Agency Fund - Consist of five funds; 1) the 1999 Agency Bonds funds, 2)the 2002 Agency
Bonds Funds, and 3) the RDA Capital Improvement Fund are for improvement projects. Additionally, there
are 4) Project Administration Fund and 5) the Housing Fund.
Traffic and Housing Mitigation Fund - Established to maintain long-term developer deposits for major
housing and street improvement projects.
Household Hazmat Facility Fund - Established to account for State mandated hazardous materials
information, collection, and reporting. Expenditures included inspection of businesses for compliance with
regulations. This fund also serves as the depository for a countywide Household Hazardous Waste Program.
Open Space Fund - Established for the acquisition of open space.
27
City of San Rafael
Balance Sheet
Governmental Funds
June 30, 2003
ASSETS
Cash and inveshnents
Cash with fiscal agents
Receivables:
Accounts
]'axes
Grants
Interest
Loans
Due from other funds
Total assets
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
Developer bonds payable
Arbitrage payable
Due to other funds
Deferred revenue
Total liabilities
Fund Balances:
Reserved
Unreserved:
Designated
Undesignated, reported in:
Major funds
Nonmajor funds reported in:
Special revenue
Total fund balances
Total liabilities and fund balances
Major Funds
Traffic and I-lousehold Non -Major Total
Redevelopment I -lousing I-Iazmat Governmental Governmental
General Agency Mitigation Facility Open Space Funds Funds
$ 2,648,875 $ 7,232,053 $ 9,423,925 $ 273,978 $ 623,004 $ 9,739,615 $ 29,941,450
67,386 13,952,777 - - - 1,112,126 15,132,289
151,117 30,000 42,227 610,107 - 254,800 1,098,271
3,662,163 964,992 - - - - 4,627,155
- - - - - 926,694 926,694
233,825 58,273 - - - - 292,098
371,595 325,156 85,714 - - 51,726 834,191
183,247 - - - - 30,000 213,247
$ 7,318,228 $ 22,563,251 $ 9,551,866 $ 884,085 $ 623,004 $ 12,114,961 S 53,055,395
S 789,206 $ 523,448 $ 19,725 S 447,993 $ 484,235 $ 483,445 $ 2,748,052
31,500 25,000 - - - 1,500 58,000
- 358,840 - - - - 358,840
- - - - 213,247 213,247
- - - - - 166,444 166,444
820,706 907,288 19,725 447,993 484,235 864,636 3,544,583
2,357,904 21,655,963 9,446,427 111,100 138,769 5,343,059 39,053,222
3,861,850 - - - - 5,667,648 9,529,498
277,768 - 85,714 324,992
688,474
- - - - - 239,618 239,618
6,497,522 21,655,963 9,532,141 436,092 138,769 11,250,325 49,510,812
$ 7,318,228 $ 22,563,251 $ 9,551,866 $ 884,085 $ 623,004 $ 12,114,961 $ 53,055,395
See accompanying Notes to Basic Financial Statements
28
City of San Rafael
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Assets
June 30, 2003
Total Fund Balances - Total Governmental Funds $ 49,510,812
Amounts reported for governmental activities in the Statement of Net Assets were different because:
Capital assets used in governmental activities were not current financial resources. Therefore,
they were not reported in the Governmental Funds Balance Sheet. Capital assets were adjusted
as follows:
Non -depreciable 88,323,150
Depreciable, net 134,951,757
Total capital assets 223,274,907
Interest payable on long-term debt did not require current financial resources. Therefore, interest
payable was not reported as a liability in Governmental Funds Balance Sheet. (270,376)
Internal service funds were used by management to charge the costs of certain activities, such as
insurance, to individual funds. The assets and liabilities of the Internal service hinds were
included in governmental activities in the Government -Wide Statement of Net Assets: 5,093,097
Long-term liabilities were not due and payable in the current period. Therefore, they were not
reported in the Governmental Funds Balance Sheet.
Compensated absences (4,213,137)
Long-term debt (56,214,598)
Total long-term liabilities (60,427,735)
Net Assets of Governmental Activities $ 217,180,705
See accompanying Notes to Basic Financial Statements.
29
City of San Rafael
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the year ended June 30, 2003
Major Funds
Traffic and
Household
Non -Major
Total
Redevelopment
Housing
Hazmat
Governmental
Governmental
General
Agency
Mitigation
Facility
Open Space
Funds
Funds
REVENUES:
Taxes and special assessments $
31,681,932
$ 4,534,360
$ -
$ -
$ -
$ 3,068,351
$ 39,284,643
Licenses and permits
727,918
-
-
7,191
-
-
735,109
Pines and forfeitures
769,632
-
-
-
-
1,000
770,632
Use of money and property
863,927
666,159
126,103
13,517
9,022
218,611
1,897,339
Intergovernmental
5,183,327
-
282,224
16,670
-
3,923,201
9,405,422
Charges for services
1,127,000
75,999
717,863
1,269,279
-
6,913,251
10,102,392
Other evenue
168,710
2,694,709
320,044
27,503
-
357,331
3,568,297
Total revenues
40,522,446
7,971,227
1,446,234
1,333,160
9,022
14,481,745
65,763,834
EXPENDITURES:
Current:
General government
4,549,673
-
-
-
-
191,030
4,740,703
Public safety
23,269,169
-
-
1,300,805
-
3,471,105
28,041,079
Public works and parks
5,744,776
-
-
-
2,744
3,744,032
9,491,552
Community development/redevelopmem
1,926,425
1,307,300
-
-
-
20,222
3,253,947
Culture and recreation
1,770,538
-
-
-
-
5,405,559
7,176,097
Capital outlay
84,985
2,417
-
54
-
38,428
125,884
Capital inmprovement/special projects
714,827
3,505,176
234,598
-
484,236
6,119,959
11,058,796
Debt service:
Capitalized lease obligation
197,132
-
-
-
-
-
197,132
Principal
-
23,585,000
-
-
-
705,000
24,290,000
Interest and fiscal charges
-
3,640,818
-
-
-
405,352
4,046,170
Total expenditures
38,257,525
32,040,711
234,598
1,300,859
486,980
20,100,687
92,421,360
REVENUES OVER
(UNDER) EXPENDFFURES
2,264,921
(24,069,484)
1,211,636
32,301
(477,958)
(5,618,942)
(26,657526)
OTHER FINANCING SOURCES (USES):
Proceeds 6'om issuance of debt
Contribution from Sanitation Disn'ict
Transfers in
Transfers out
Total other financing sources (uses)
REVENUES AND OTHER
FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES
FUND BALANCES:
Beginning of year, as restated
End of year
-
25,020,000 -
- - 7,605,000
32,625,000
-
- -
- - 744,556
744,556
1,052,142
35,505,483 -
- - 5,946,351
44503,976
(4,519,943)
(28,359,850) -
- - (10,091,455)
(42,971,248)
(3,467,801)
32,165,633 -
- - 4,204,452
32,902,284
(1,202,880) 8,096,149
1,211,636 32,301 (477,958) (1,414,490) 6,244,758
7,700,402 13,559,814 8,320,505 403,791 616,727 12,664,815 43,266,054
$ 6,497,522 $ 21,655,963 $ 9,532,141 $ 436,092 $ 138,769 $ 11,250,325 $ 49,510,812
See accompanying Notes to Basic Financial Statements
30
City of San Rafael
Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in
Fund Balances to the Government -Wide Statement of Activities and Changes in Net Assets
For the year ended June 30, 2003
Net Change in Fund Balances -Total Governmental Funds $ 6,244,758
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlay as expenditures. However, in the Government -Wide
Statement of Activities and Changes in Net Assets, the cost of those assets is allocated over their
estimated useful lives as depreciation expense. This is the amount of capital assets recorded in
the current period. 8,904,612
Activities and Changes in Net Assets, but they do not require the use of current financial
resources. Therefore, depreciation expense is not reported as expenditures in governmental
funds. (20,116,743)
Loss on the disposal of capital assets is reported in the Government -Wide Statement of Activities
and Changes in Net Assets, but they do not require the use of current financial resources.
Therefore, it is not reported as expenditures in governmental funds. (500,819)
Expenses for compensated absences accrued but not paid are reported in the Government -Wide
Statement of Activities and Changes in Net Assets, but they do not require the use of current
financial resources. Therefore, compensated absences are not reported as expenditures in
governmental funds. This amount represent current compensated absences expenses incurred. (329,348)
Bond proceeds and proceeds from long-term debt provide current financial resources to
governmental funds, but issuing debt increases long-term liabilities in the Government -Wide
Statement of Net Assets. Repayment of bond principal is an expenditure in governmental funds,
but the repayment reduces long-term liabilities in the Government -Wide Statement of Net Assets.
This amount represents proceeds from bonds (32,625,000)
This amount represents long-term debt repayments. 24,290,000
This amount represents capitalized lease obligation payments 197,132
Total long-term debt (8,137,868)
Interest expense on long-term debt is reported in the Government -Wide Statement of Activities
and Changes in Net Assets, but they do not require the use of current financial resources. The
following amount represents the change in accrued interest from prior year. (36,590)
Internal service funds are used by management to charge the costs of certain activities, such as
insurance and fleet management, to individual funds. The net revenue of the internal service
funds is reported with governmental activities. 76,044
Change in Net Assets of Governmental Activities $ (13,895,954)
See accompanying Notes to Basic Financial Statements
31
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32
PROPRIETARY FUND
FINANCIAL STATEMENTS
Parking Services Fund - Established to maintain parking garages, lots and spaces in the Downtown Parking
District (established over 40 years ago), and to pay for parking enforcement, meter collection, and downtown
officer services.
33
City of San Rafael
Statement of Net Assets
Proprietary Funds
June 30, 2003
ASSETS
Current assets:
Cash and investments
Receivables:
Accounts
Interest
Loans
Prepaid expenses
Total current assets
Noncurrent assets:
COP issuance costs, net
Capital assets:
Nondepreciable assets
Depreciable assets, net
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Connection fees payable
Interest payable
Insurance claims payable
Deferred revenue
Long-term debt - due within one year
Total current liabilities
Long-term liabilities:
Long-term debt - due in more than a year
Total long-term liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total net assets
Component
Major Fund
Unit
Governmental
San Rafael
Activities
Parking
Sanitation
bnternal
Services
District
Service Funds
$ 1,087,279 $ 5,809,232 $ 8,373,256
25,513 - 601,661
- 29,406 -
15,000
25,715 -
1,112,792 5,864,353 8,989,917
67,197
7,856,487
607,930
1,295,976 -
21,421,072 -
8,464,417
22,784,245 -
9,577,209
28,648,598 8,989,917
28,410 131,874 126,087
- 14,000 -
67,865 -
- - 3,770,733
6,137 - -
- 502,010 -
34,547 715,749 3,896,820
3,326,913 -
- 3,326,913 -
34,547 4,042,662 3,896,820
8,464,417 18,888,125 -
- 417,121 -
1,078,245 5,300,690 5,093,097
$ 9,542,662 $ 24,605,936 $ 5,093,097
See accompanying Notes to Basic Financial Statements
34
City of San Rafael
Combining Statement of Revenues, Expenses and Changes in Retained Earnings
Proprietary Funds
For the year ended June 30, 2003
OPERATING REVENUES:
Charges for current services
Refunds
Coimection fees
Other operating revenues
Total operating revenues
OPERATING EXPENSES:
Personnel
Insurance premiums and claims
Maintenance and repairs
Sewage collection
Sewage treatment
Depreciation and amortization
General and administrative
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES):
Property taxes
Aid from governmental agencies
Investment income
Interest expense
Total nonoperating revenues
INCOME (LOSS) BEFORE OTHER FINANCING SOURCES (USES)
OTHER FINANCING SOURCES (USES):
Contribution to City of San Rafael
Transfers in
Transfers out
Total other financing sources (uses)
Net income (loss)
RETAINED EARNINGS:
Beginning of year, as restated
End of year
Component
Major Fund
Unit
Governmental
San Rafael
Activities
Parking
Sanitation
Internal
Services
District
Service Funds
$ 981,301 $ 5,529,231 $ 5,015,126
- - 306,341
- 37,379 -
829,178 - 640,813
1,810,479 5,566,610 5,962,280
659,594
-
-
-
3,697,137
344,003
-
1,462,860
-
1,561,698
-
-
2,146,932
-
39,788
873,561
-
201,931
189,724
1,522,424
1,245,316
4,771,915
6,682,421
565,163 794,695 (720,141)
560,269
- 141,314 -
17,772 104,358 96,515
- (191,737) -
17,772 614,204 96,515
582,935 1,408,899 (623,626)
- (744,556) -
1,115,000 - 810,000
(1,347,398) - (110,330)
(232,398) (744,556) 699,670
350,537 664,343 76,044
9,192,125 23,941,593 5,017,053
$ 9,542,662 $ 24,605,936 $ 5,093,097
See accompanying Notes to Basic Financial Statements
35
City of San Rafael
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2003
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers/other funds
Cash payments to suppliers for goods and services
Other operating revenues
Net cash provided (used) by operating activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Property taxes
Aid from governmental agencies
Transfers in
Transfers out
Net cash provided (used) by noncapital financing activities
CASH FLOWS FROM CAPITAL. FINANCING ACTIVITIES:
Cash paid for capital acquisitions
Capital contribution to primary goverrmment
Interest received from certificates of participation principal cash
Principal payments on certificates of participation
Interest paid on certificates of participation
Net cash provided (used) by capital financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
Net cash provided (used) by investing activities
Net increase (decrease) in cash mid cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation
Changes in operating assets and liabilities:
Accounts receivable
Interest receivable
Loans receivable
Prepaid items
Other assets
Accounts payable
Connection fees
Interest payable
hisurance claims payable
Deferred revenue
Total adjustments
Net cash provided (used) by operating activities
Component
Major Fund
Unit
Governmental
San Rafael
Activities
Parking
Sanitation
Internal
Services
District
Service Funds
S 975,844 $ 5,566,610 $ 5,345,619
(1,024,410) (637,525) (6,763,378)
627,247 (3,167,504) -
578,681 1,761,581 (1,417,759)
560,269
-
141,314 -
1,115,000
- 810,000
(1,347,198)
- (110,330)
(232,398)
701,583 699,670
(246,253) (1,188,823) -
(744,556) -
23,34'1
("130,000) -
(168,237) -
(246,253) (2,408,275) -
17,772 82,658 96,515
17,772 82,658 96,515
117,802 137,547 (621,574)
969,477 5,671,685 8,994,830
$ 1,087,279 $ 5,809,232 $ 8,373,256
$ 565,163 $ 794,695 $ (720,141)
39,788 873,561
(5,457)
- (616,661)
- (10,534) -
14,147 -
(21,950) 108,900 1,922
(19,188)
- - (82,879)
1,137 -
13,518 966,886 (697,618)
$ 578,681 $ 1,761,581 $ (1,417,759)
See accompanying Notes to Basic Financial Statements
36
NOTES TO BASIC FINANCIAL STATEMENTS
37
City of San Rafael
Notes to Basic Financial Statements
For the year ended June 30, 2003
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of San Rafael (City) have been prepared in conformity with generally
accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting
Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting
and financial reporting principles.
A. Reporting Entity
The City maintains a Council -Manager form of government and provides the following services: public
safety (police and fire), public works, community development, library, parks, recreation, childcare, and
general administrative services.
As required by GAAP, these basic financial statements present the City (the primary government) and its
component units. Component units generally are legally separate entities for which a primary government
is financially accountable. Financial accountability ordinarily involves meeting both of the following
criteria set forth in GASB Statement No. 14: the primary government is accountable for the potential
component unit, and the primary government is able to impose its will upon the potential component, or
there is a possibility that the potential component unit may provide specific financial benefits or impose
specific financial burdens on the primary government.
In addition to having the same governing board, the City is financially accountable for the San Rafael
Redevelopment Agency and the San Rafael Joint Powers Financing Authority, and management activities of
both entities are conducted by City staff. The two legally separate entities are, in substance, part of the
City's operations and are, therefore, blended into the City's basic financial statements.
The component units discussed in this note are included in the City's reporting entity because of the
significance of its operational or financial relationships with the City. Each component unit has a June 30
year end. Separately issued component unit financial statements can be obtained at the City of San Rafael,
Finance Division, 1400 Fifth Avenue, Room 204, San Rafael, California 94901.
Blended Component Units
San Rafael Redevelopment Agency - The San Rafael Redevelopment Agency (Agency) was established
under the provisions of the Community Redevelopment Law (California Health and Safety Code,
commencing with Section 33000) primarily to assist in the clearance and rehabilitation of areas
determined to be in a declining condition in the City. Financial activity of the Agency commenced in
July 1983. Under the Agency's Redevelopment Plan (Plan), approved in November 1982, the Agency
proposes to assist in the development of the property located in the central San Rafael business core
and east San Rafael. The Agency receives incremental tax revenues on the developed property due to
increases in assessed value. The Agency functions as an independent entity. The City Council serves as
the governing board of the Agency.
The Agency's assets, liabilities, revenues and expenditures (other than those applicable to its capital
assets and long-term debt) are reported in the Fund Financial Statements. The Agency's capital assets
and long-term debt are reported with the Governmental Activities in the Government -Wide Financial
Statements.
38
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
A. Reporting Entihj, Continued
San Rafael Toint Powers Financing Authorih� - The San Rafael Joint Powers Financing Authority
(Authority) was created by the City of San Rafael 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 activities of the City.
All of the Authority's assets, liabilities, revenues and expenditures are reported in the Fund Financial
Statements. The Agency's capital assets and long-term debt are reported with the Governmental
Activities in the Government -Wide Financial Statements.
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 City contracts with the District
to maintain the collection systems in the City and 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 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, results
of operations and cash flows. The District's fiscal year end is June 30 and its separately issued
component unit financial statements can be obtained at Central Marin Sanitation Agency, Finance
Department, 1301 Andersen Drive, San Rafael, California 94901.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity with its own self -balancing accounts that comprise its assets, liabilities, fund equity,
revenues and expenditures or expenses. These funds are established for the purpose of carrying out
specific activities or certain objectives in accordance with specific regulations, restrictions or limitations.
Governmental resources are allocated to and accounted for in individual funds based upon the purposes for
which they are to be spent and the means by which spending activities are controlled.
Government -Wide Financial Statements
The City Government -Wide Financial Statements include a Statement of Net Assets and a Statement of
Activities and Changes in Net Assets. These statements present summaries of Governmental and Business -
Type Activities for the City accompanied by a total column. Fiduciary Activities of the City are not
included in these statements.
39
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
The basic financial statements are presented on an "economic resources" measurement focus and the accrual
basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as well as
infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Assets.
The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues
are recognized in the period in which they are earned while expenses are recognized in the period in which
the liability is incurred.
Certain types of transactions reported as program revenues for the City are reported in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions.
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, payables and receivables. All internal balances in the Statement of Net Assets have been
eliminated except those representing balances between the governmental activities and the business -type
activities, which are presented as internal balances and eliminated in the total primary government column.
In the Statement of Activities, internal service fund transactions have been eliminated; however, those
transactions between governmental and business -type activities have not been eliminated. The following
interfund activities have been eliminated:
• Due to, Due from other funds
• Transfers in, transfer out
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues,
Expenditures and Changes in Fund Balances for all major governmental funds and non -major funds
aggregated. An accompanying schedule is presented to reconcile and explain the differences in net assets
as presented in these statements to the net assets presented in the government -wide financial statements.
The City has presented all major funds that met those qualifications.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus
and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are
included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances
present increases (revenues and other financing sources) and decreases (expenditures and other financing
uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the
accounting period in which they become both measurable and available to finance expenditures of the
current period.
40
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days
after year-end) are recognized when due. The primary revenue sources, which have been treated as
susceptible to accrual by the City, are property tax, taxpayer -assessed tax revenues (sales taxes, transient
occupancy taxes franchise taxes, etc.), grant revenues and earnings on investments. Expenditures are
recorded in the accounting period in which the related fund liability is incurred.
Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided
to explain the differences created by the integrated approach of GASB Statement No. 34.
Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Assets, a Statement of Revenues, Expenses
and Change in Net Assets, and a Statement of Cash Flows for all proprietary funds.
Columns representing a discretely presented component unit and internal service funds are also presented
in these statements. However, internal service balances and activities have been combined with the
governmental activities in the government -wide financial statements.
Proprietary funds are accounted for using the "econonnc resources" measurement focus and the accrual basis
of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the
Statement of Net Assets. The Statement of Revenues, Expenses and Change in Fund Net Assets presents
increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of accounting,
revenues are recognized in the period in which they are earned while expenses are recognized in the period
in which the liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the primary
operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are
those expenses that are essential to the primary operations of the fund. All other expenses are reported as
nonoperating expenses.
C. Recognition of Interest Liability
Interest expenditures on long-term debt are recognized when payment is due. Proprietary fund interest
expense is recognized as the liability is incurred.
D. Use of Restricted and Unrestricted Net Assets
When an expense is incurred for purposes for which both restricted and unrestricted net assets are
available, the City's policy is to apply restricted net assets first.
41
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
E. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City considers pooled cash and investment
amounts with original maturities of three months or less to be cash equivalents.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for
External Investment Pools, highly liquid market investments with maturities of one year or less at time of
purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used
as fair value for those securities for which market quotations are readily available.
The City participates in an investment pool managed by the State of California titled Local Agency
Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset -
Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of
California collateralizing these investments. In addition, these Structured Notes and Asset -Backed
Securities are subject to market risk as to change in interest rates.
F. Short -Term Interfund Receivables/Payables
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. These receivables and payables are classified as "due from other funds' or
"due to other funds" on the balance sheet. Short-term loans are classified as interfund receivables or
payables.
G. Property Tax Levy Collection and Maximum Rates
The State of California (State) Constitution Article XIIIA provides that the combined maximum property tax
rate on any given property may not exceed one percent (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 XIIIA and may be adjusted by no more than two percent (2%) per year
unless the property is sold, transferred, or improved. The State Legislature has determined the method of
distribution of receipts from a one percent (1%) tax levy among the counties, cities, school districts, and
other districts.
Marin County assesses, bills for, and collects property taxes as follows:
Secured Unsecured
Lien dates January 1 January 1
Levy dates July 1 July 1
Due dates 50% on November 1 and July 1
50% on February 1
Delinquent as of December 10 (for November) August 31
April 10 (for February)
42
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
G. Property Tax Levy Collection and Maxiinuin Rates, Continued
The term "unsecured" refers to taxes on personal property other than real estate, land, and buildings
These taxes are secured by liens on the property being taxed.
Property taxes levied are recorded as revenue when received in the fiscal year of levy because of the
adoption of the "alternate method of property tax distribution," known as the Teeter Plan, by the City and
the County of Marin. The Teeter Plan authorizes the auditor -controller of the County of Marin to allocate
100% of the secured property taxes billed, but not yet paid. The County of Marin remits tax monies to the
City in three installments, as follows:
55 % remitted on December 15
40 % remitted on April 15
5% remitted on June 15
H. Taxpayer -Assessed Taxes Accrual
In accordance with GASB Statement No. 22, Accounting for Taxpayer -Assessed Tax Revenues in Governmental
Funds, the City recognizes taxpayer -assessed taxes in governmental funds as follows:
Sales Taxes - The City accrues actual advances from the State Board of Equalization received in July and
August of the subsequent fiscal year, as these amounts are both measurable and available to the City to
meet its financial obligation for the current period.
Public Sa,Lehi Sales Tax (Proposition 172 Sales Tax) - The City accrues July and August receipts of the
public safety sales tax on the basis consistent with the accrual of regular sales taxes.
Transient Occupanci Taxes axes - The City collects transient occupancy taxes on a quarterly basis. The taxes
assessed for the quarter ended June 30 are due by July 31 of the subsequent fiscal year. The City
accrues all transient occupancy taxes for the June 3001 quarter received subsequent to the fiscal year end.
Gas Taxes - The City accrues gas taxes assessed for the month ended June 30, as these amounts are both
measurable and available to the City a month after the fiscal year end.
Franchise Fees - The City collects cable franchise fees on a quarterly basis and refuse franchise fees on a
monthly basis. The taxes assessed for the quarter ended June 30 are due by July 31 of the subsequent
fiscal year. The City accrues all franchise fees for the June 30th period received subsequent to the fiscal
year end.
43
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
L Capital Assets
Capital assets, which include land, land improvements, buildings and structures, machinery and
equipment, and infrastructure assets (e.g. bridges, sidewalks, and similar items), are reported in the
applicable governmental or business -type activities in the Government -Wide Financial Statements. Capital
assets are recorded at historical cost or estimated historical cost if actual cost in not available. Donated
assets are valued at their estimated fair value on the date donated.
City policy has set the capitalization threshold for reporting capital assets at the following:
General Capital Assets $5,000 - $50,000
Infrastructure Capital Assets $25,000 - $250,000
For capital assets, depreciation is recorded on a straight-line basis over the useful lives of the assets as
follows:
Buildings and Improvements 20 - 25 years
Machinery and Equipment 4 - 15 years
Infrastructure 15 - 50 years
GASB Statement No. 34 requires the inclusion of infrastructure capital assets in local governments' basic
financial statements. In accordance with GASB Statement No. 34, the City has included the value of all
infrastructure capital assets into its Basic Financial Statements.
The City defines infrastructure capital assets as the basic physical assets that allow the City to function. The
assets include:
Bridges
Street system
Roadways
Storm Drain System
Each major infrastructure system can be divided into subsystems. For example, the street system can be
subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, and traffic control devices
(signs, signals and pavement markings). These subsystems were not delineated in the Basic Financial
Statements. The appropriate operating department maintains information regarding the subsystems.
The City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure
reporting. The City conducted a valuation of its infrastructure assets as of July 1, 2002. This valuation
determined the original cost using one of the following methods:
1. Use of historical records where available.
2. Standard unit costs appropriate for the construction/acquisition date.
3. Present cost indexed by a reciprocal factor of the price increase from the construction/acquisition
date to the current date.
44
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
L Capital Assets, Continued
The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition
to the current date on a straight line method using industry accepted life expectancies for each
infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation
from the original cost.
Interest accrued during capital assets construction, if any, is capitalized for the business -type activities and
proprietary funds as part of the asset cost.
The collection systems and facilities of the District are stated at cost less accumulated depreciation. Assets
contributed have been recorded at the fair market value at the date received. Maintenance and repairs are
charged to expense as incurred. Improvements are capitalized and depreciated over the remaining useful
lives of the related capital asset. Depreciation is computed using the straight-line method over the useful
lives of the assets.
A summary of the useful lives of the capital assets of the District is as follows:
Subsurface lines 50 years
Sewage collection facilities 5 - 50 years
General plant and administrative facilities 3 -15 years
J. Long -Terns Lease Accounting
Capital assets acquired through long-term lease contracts are capitalized at the time the contract is
executed. The related assets and liabilities are recorded in the appropriate activity.
K. Compensated Absences
The City accounts for compensated absences (unpaid vacation, sick leave, compensatory time, and
administrative leave) expected to be currently payable as accrued payroll and benefits liability in the
governmental funds to which they relate. The balance of the earned and vested, but unused, compensated
absences expected to be paid subsequent to the end of the current fiscal year is recorded as a liability in the
governmental activities of the Governmental -Wide Financial Statements. Effective July 2001, the
requirement that employees hired before October, 1979 be eligible for a portion of unused sick leave was
eliminated. No expenditure was recorded for these amounts.
L. Claims and Judgments
Claims and judgments are recognized as expenditures when it is probable that the liability has been
incurred and the amount of the loss can be reasonably estimated. The expenditures are accounted for in the
internal service funds.
45
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
M. Appropriation Limit
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is
restricted as to the amount of annual appropriations from proceeds of taxes. For the fiscal year ended
June 30, 2003, based on calculations by the City's management, proceeds of taxes did not exceed related
appropriations. Further, Section 5 of Article XIIIB allows the City to designate a portion of fund balances
for general contingencies to be used for any purpose.
N. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
O. Net Assets
Government -Wide Financial Statements
Invested in Capital Assets, Net of Related Debt - Tlus amount consists of capital assets net of accumulated
depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or
improvement of the assets.
Restricted Net Assets - This amount is restricted by external creditors, grantors, contributors, or laws or
regulations of governments.
Unrestricted Net Assets - This amount is all net assets that do not meet the definition of "invested in
capital assets, net of related debt" or "restricted net assets' as defined above.
Fund Financial Statements
Reservations of fund balances of governmental funds and net assets of proprietary funds are created to
either satisfy legal covenants; including State laws, that require a portion of the fund equity be segregated
or identify the portion of the fund equity not available for future expenditures.
P. Implementation of New GASB Pronouncements
The City adopted new accounting standards in order to conform to the following Governmental Accounting
Standards Board Statements:
Statement No. 34, Basic Financial Statements - and Mauagernent's Discussion and Analysis -for State and
Local Governments
Statement No. 37, Basic Financial Statements - and Management's Discussion and Analysis - far State and
Local Governments: Omnibus
Statement No. 38, Certain Financial Statement Note Disclosures
46
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
P. Implementation of New GASB Pronouncements, Continued
GASB No. 34 is a new financial reporting requirement for local governments in the United States. The City has
implemented this pronouncement and has restructured much of the information that it has presented in the
past. The main goal is to make the reports more comprehensive and easier to understand and use.
GASB Statement No. 37 addresses selected issues and amends GASB Statements No. 21, Accounting for Escheat
Property, and No. 34, Basic Financial Statements - and Management's Discussion and Analysis -for State and Load
Governments. These Statements make selective changes including accounting for Escheat Property,
Management's Discussion and Analysis, Capitalization of Construction -Period Interest, Modified Approach
for Reporting Infrastructure, Program Revenues and Major Fund Criteria.
GASB Statement No. 38 establishes and modifies disclosure requirements related to Summary of Significant
Accounting Policies, actions taken to address violations of significant finance -related legal and contractual
provisions, debt and lease obligations, short-term debt, disaggregation of receivable and payable balances, and
interfund balances and transfers.
2. CASH AND INVESTMENTS
The City maintains a cash and investment pool, which includes cash balances and authorized investments of
all funds, which the City Treasurer invests to enhance interest earnings. The pooled interest earned is
allocated quarterly to each fund based on an average of quarterly opening and closing balances of cash and
investments.
A. Cash Deposits
The carrying amounts of the City's cash deposits were $4,893,286 at June 30, 2003. Bank balances at June 30,
2003 were $6,282,530 which were fully insured and collateralized with securities held by the pledging financial
institutions in the City's name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the
City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner
shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor.
Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also
allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150%
of the City's total cash deposits. The City may waive collateral requirements for cash deposits which are fully
insured up to $100,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the
collateralization requirements.
47
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
2. CASH AND INVESTMENTS, Continued
B. Investments
The City is authorized by State statutes and in accordance with the City's Investment Policy (the Policy),
adopted on December 15, 2003, to invest in the following:
U.S. Government Obligations
• U.S. Government Agencies and Instruments
Repurchase Agreements
• Bankers Acceptances
Commercial Paper
• Medium -Term Corporate Notes
• Certificates of Deposit
• Negotiable Certificates of Deposit
• California Local Agency Investment Fund (LAIF)
• Mutual Funds
C. Risk Category
In accordance with GASB Statement No. 3, cash deposits and investments are categorized separately to give an
indication of the level of risk assumed by the City. Cash deposits and investments not subject to such
categorization under GASB Statement No. 3 are identified as "uncategorized."
The City's cash deposits and investments are categorized in the following manner:
Deposits
Categoni I - Insured or collateralized with securities held by the entity or by its agent in the entity's
name.
Categony 2 - Collateralized with securities held by the pledging financial institution's trust department or
agent in the entity's name.
Category 3 - Deposits which are uninsured or uncollateralized.
Investments
Category 1 - Insured or registered or securities held by the entity or its agent in the entity's name.
Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or
agent in the entity's name.
Category 3 - Uninsured and unregistered, with securities held by the counterparty, or by its trust
department or agent, but not in the entity's name.
Uncategorized - Certain cash deposits and investments are not subject to categorization under GASB
Statement No. 3.
48
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
2. CASH AND INVESTMENTS, Continued
C. Risk Category, Continued
The following is a summary of pooled cash and investments, including restricted cash and investments at
June 30, 2003:
Government -Wide Statement of Net Assets
Business Fiduciary Funds
Governmental Type Statement of
Activities Activities Total Net Assets Total
Cash and Investments $ 37,898,902 $ 1,087,279 $ 38,986,181 $ 415,804 $ 39,401,985
Restricted Cash and Investments:
Held by fiscal agents $ 15,132,289 $ - $ 15,132,289 $ - $ 15,132,289
Total restricted cash and investments $ 15,132,289 $ - $ 15,132,289 $ - $ 15,132,289
Total cash and investments $ 54,534,274
Pooled cash and investments were classified by risk category as follows at June 30, 2003:
City Treasury:
Demand Deposits:
Cash Deposits
Certificates of Deposit
Total demand deposits
Investments:
Securities of U.S. Government
Agencies
Corporate bonds and notes
Local Agency Investment Fund
Total investments
Total City Treasury
Cash and Investments with
Fiscal Agents
Total
Category
1
Category Category Fair
2 3 Uncategorized Value
$ 4,893,286 $ - $ - $ - $ 4,893,286
294,520 - - - 294,520
5,187,806 - - - 5,187,806
- 2,788,798 - - 2,788,798
7,372,369 - - 7,372,369
- - 24,053,012 24,053,012
- 10,161,167 - 24,053,012 34,214,179
$ 5,187,806 $ 10,161,167 $ - $ 24,053,012 $ 39,401,985
$
- $ -
$
15,132,289
$ -
$
15,132,289
$
5,187,806 $ 10,161,167
$
15,132,289
$ 24,053,012
$
54,534,274
49
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
2. CASH AND INVESTMENTS, Continued
C. Risk Category, Continued
The City's investments with Local Agency Investment Fund (LAIF) at June 30, 2003, included a portion of the
pool funds invested in Structured Notes and Asset -Backed Securities. These investments include the
following:
Structured Notes are debt securities (other than asset -backed securities) whose cash flow characteristics
(coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have
embedded forwards or options.
Asset -Backed Securities, the bulk of which are nnort e-backed sectiritiies, entitle their purchasers to receive a
share of the cash flows from a pool of assets such as principal and interest repayments from a pool of
mortgages (such as CMOs) or credit card receivables.
As of June 30, 2003, the City had $24,053,012 invested in LAIF, which had invested 2.327% of the pool
investment funds in Structured Notes and Asset -Backed Securities. The LAIF fair value factor of 1.002846280
was used to calculate the fair value of investments in LAIF.
Cash and investments stated at fair value held in the City Treasury grouped by maturity date at June 30, 2003,
are shown below:
Maturity
Fair Value
Current to one year
$ 30,069,353
One to two years
3,810,594
Two to three years
2,733,240
Three to four years
1,286,797
Four to five years
1,502,001
Total
$ 39,401,985
D. Cash and Investments with Fiscal Agents
The funds deposited with fiscal agents can be held in cash or invested in various securities. The fiscal agents
can invest in securities as outlined an trust agreements, provided the investments are within the limits imposed
by State statutes upon the entity. At June 30, 2003, cash and investments with fiscal agents totaling $15,132,289
were recorded at fair value.
50
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
2. CASH AND INVESTMENTS, Continued
E. Component Unit -Sanitation District Cash and Investments
All of the District's cash is deposited with the County of Marir s pooled cash and investments account,
except cash related to the certificates of participation which is invested in an open-end mutual fund held in
trust by the Districts custodial agent. The carrying amount and fair value of the pooled cash and
investments account and the open-end mutual fund at June 30, 2003, amounted to $5,326,369 and $482,863,
respectively, totaling $5,809,232. Both of these types of investments are not required to be categorized as to
credit risk. Fair values for the pooled cash and investments were provided by the County of Marin as the
pool's sponsor. The fair value of the open-end mutual fund was based upon the unit share price at June 30,
2003.
Cash and investments at June 30, 2003, consisted of the following:
Cash and investments
$
5,809,157
Petty cash
75
Total
$
5,809,232
Unrestricted cash:
Cash
$
5,326,369
Restricted cash:
Certificates of participation
482,863
Total
$
5,809,232
3. LOANS RECEIVABLE
The City had the following loans receivable at June 30, 2003:
Government
Wide
Financial
Statements
Fund Financial Statements
Governmental
Governmental
Internal
Activities
Funds
Service Funds
Loan to City Manager
$ 346,231
$ 346,231
$ -
Employees' Computer Loans
25,364
25,364
-
Marin Housing Development
99,620
99,620
-
Centertown Associates
225,536
225,536
-
One "H " Street Associates
85,714
85,714
-
Muir Terrance Homes
-
21,726
-
Marin Bocce Federation
-
30,000
-
ORCA Swim Club
15,000
-
15,000
Total
$ 797,465
$ 834,191
$ 15,000
51
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
3. LOANS RECEIVABLE, Continued
On August 1, 1996, the City made a 30-year loan to the City Manager in the amount of $392,040, at an
interest rate equivalent to the Local Agency Investment Fund interest rate, for the purchase of a home. The
loan is secured by the Deed of Trust. The principal and interest are payable monthly commencing
September 1, 1996 through August 31, 2026. The outstanding balance at June 30, 2003 was $346,231.
Effective February 1, 2000, the City agreed to loan employees up to $2,500 for the purchase of computer
software and hardware. The loan program, which stipulates that employees may not have more than one
loan outstanding, provides financial assistance from the City in the form of a no interest loan repaid through
automatic payroll deductions. The outstanding balance at June 30, 2003 was $25,364.
Original balance was $100,000 from Marin Housing Development at 0% interest rate. All principal and
interest shall be due on January 30, 2005. The outstanding balance at June 30, 2003 was $99,620.
Original balance was $303,000 loan from Centertown Associates, Ltd. at 3% interest rate due semiannually.
The final payment is due on July 31, 2065. The outstanding balance at June 30, 2003 was $225,536.
On May 18, 2001, the Agency entered a five-year balloon mortgage loan agreement with Brendan Mitchell
in the amount of $126,160. The annual interest rate of the loan is 7.875%. The entire outstanding balance was
paid off in fiscal year 2003.
$100,000 loan from One "H" Street Associates at 0% interest rate with amnual payments of $2,857 and with
final payment due January 18, 2034. The loan is in corunection with the affordable housing project located
at One "H" Street. The outstanding balance at June 30, 2003 was $85,714.
In April 1996, Muir Terrace Homes entered in agreement with the City to defer all development fee payments
except the Traffic Mitigation fee is waived for the Below Market Rate units. The payments are due when the
developer has sold all the units for low -mod income housing. The outstanding balance at June 30, 2003 was
$21,726. In the Government -Wide Financial Statements, the receivable and deferred revenues are eliminated.
The City entered an interest free loan with the Marin Bocce Federation to finance the San Rafael Bocce Center
projects. The loan is due in annual installments, due and by June 30 of each year in the amount of $5,000. The
outstanding balance at June 30, 2003 was $30,000. In the Government -Wide Financial Statements, the
receivable and deferred revenues are eliminated.
On February 19, 2002 the City of San Rafael entered into an agreement with the ORCA Swim Club to
purchase new competitive swim equipment for the Club. The Club will reimburse the City for $18,000 of the
equipment cost. $3,000 was paid off by the Club in September 2002, and the remaining balance at June 30,
2003 of $15,000 will be paid in full by 2005 in three equal annual installments.
52
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
4. INTERFUND TRANSACTIONS
A. Due From/To Other Funds
As of June 30, 2003, balances of due from/ other funds were as follows:
Due To Other
Funds
Non ,Major
Governmental
Funds
General Fund $ 183,247
wO w
Non -Major Governmental Funds 30,000
�
Ca Total $ 213,247
B. Transfers
Transfers for the year ended June 30, 2003, were as follows:
Major Funds:
General Fund
0 Redevelopment Agency
Development Services
a
� Non -Major Governmental Funds
i°
F Parking Services Enterprise Fund
Internal Service Funds
Total
Transfers In
Parking
Major Funds Non -Major Services Internal
General Redevelopment Govermmental Enterprise Service
Fund Agency Funds Fund Funds 'Total
$ - $ 400,092 $ 3,309,851 $ - $ 810,000 $ 4,519,943
4,849 26,940,001 300,000 1,115,000 - 28,359,850
338,135 - - - - 338,135
507930 7,050,390 2,195,000 - - 9,753,320
90,898 1,115,000 141,500 - - 1,347,398
110,330 - - - - 110,330
$ 1,052,142 $ 35,505,483 $ 5,946,351 $ 1,115,000 $ 810,000 $ 44,428,976
53
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
5. CAPITAL ASSETS
A. Government -Wide Financial Statements
At June 30, 2003 the City's capital assets consisted of the following:
Governmental
Business -Type
Component
Activities
Activities
Total
U1ut
Non -depreciable assets:
Land
$ 80,683,347
$ 7,661,071
$ 88,344,418
$ 115,329
Construction in process
7,639,803
195,416
7,835,219
1,180,647
88,323,150
7,856,487
96,179,637
1,295,976
Depreciable assets:
Land improvements
7,327,523
-
7,327,523
-
Buildings and structures
24,642,085
1,163,000
25,805,085
-
Machinery and equipment
11,821,301
208,357
12,029,658
-
Infrastructure
164,763,888
-
164,763,888
-
Subsurface lines
-
-
-
12,152,655
Sewage collection facilities
-
-
-
24,039,223
General plant and administration
-
-
-
50,393
208,554,797
1,371,357
209,926,154
36,242,271
Less accumulated depreciation
(73,603,040)
(763,427)
(74,366,467)
(14,821,199)
Total depreciable assets, net
134,951,757
607,930
135,559,687
21,421,072
Total capital assets
$ 223,274,907
$ 8,464,417
$ 231,739,324
$ 22,717,048
54
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
5. CAPITAL ASSETS, Continued
A. Government -Wide Financial Statements, Continued
The following is a summary of capital assets for governmental activities for the year ended June 30, 2003:
Governmental Activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Land improvements
Buildings and structures
Machinery and equipment
Hnfrastructure
Total capital assets,
being depreciated
Accumulated depreciation:
Land improvements
Buildings and structures
Nachunery and equipment
Infrastructure
'total accumulated depreciation
'total capital assets,
being depreciated, net
Governmental activities
capital assets, net
Balance Reclassification/
July 1, 2002 Additions
Retirements
Balance
Adjustments June 30, 2003
$ 9,257,804
$ 484,236 $
(355,000)
$ 71,296,307
$ 80,683,347
-
4,574,250
-
3,065,553
7,639,803
9,257,804
5,058,486
(355,000)
74,361,860
88,323,150
4,920,790
515,809
(267,079)
2,158,003
7,327,523
16,279,714
1,830,829
(416,863)
6,948,405
24,642,085
13,785,118
589,779
-
(2,553,596)
11,821,301
-
909,709
-
163,854,179
164,763,888
34,985,622
3,946,126
(683,942)
170,406,991
208,551,797
-
(2,451,703)
267,079
(56,530)
(2,241,154)
-
(77,757)
271,044
(4,620,606)
(4,427,319)
-
(3,458,512)
-
(2,565,725)
(6,024,237)
-
(14,128,771)
-
(46,781,559)
(60,910,330)
-
(20,116,743)
538,123
(54,024,420)
(73,603,040)
34,985,622
(16 270,617)
(145,819)
116,382,571
134,951,757
$ 44,243,426
$ (11,212,131) $
(500,819)
$ 190,744,431
$ 223,274,907
Depreciation expenses by program for capital assets for the year ended June 30, 2003 are as follows:
General government
$ 295,179
Public safety
1,551,679
Public works and parks
16,823,772
Community development/redevelopment
47,714
Culture and recreation
1,398,399
Total depreciation expense
$ 20,116,743
55
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
5. CAPITAL ASSETS, Continued
A. Government -Wide Financial Statements, Continued
The following is a summary of capital assets for business -type activity:
Governmental Activities:
Capital assets, not being depreciated:
Land
ConstiucHon in progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Buildings and structures
Machinery and equipment
Total capital assets,
being depreciated
Accumulated depreciation
Buildings and structures
Machinery and equipment
I. SS accumulated depreciation
Total capital assets,
being depreciated, net
Governmental activities
capital assets, net
Balance
July 1, 2002
Reclassification/
A .l.i:a:...... n..1.:«......... s..
195,416
195,416
50,837
50,837
(23,260)
(16,528)
(39,788)
11,049
Balance
Adjustments June 30, 2003
$ - $ 7,661,071 $ 7,661,071
- 195,416
7,661,071 7,856,487
1,163,000 1,163,000
157,520 208,357
1,320,520 1,371,357
- (651,390)
(674,650)
- (72,249)
(88,777)
(723,639)
(763,427)
- 5%,881
607,930
$ - $ 206,465 $ - $ 8,257,952 $ 8,464,417
Depreciation expense for Parking Services activity was $39,788 for the year ended June 30, 2003.
56
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
5. CAPITAL ASSETS, Continued
A. Govermnent-Wide Financial Statements, Continued
A summary of the District's fixed assets at June 30, 2003, follows:
Capital assets, not, being depreciated:
Land
Constriction in progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Subsurface lines
Sewage collection facilities
General plant and administration
Total capital assets,
being depreciated
Accumulated depreciation
Subsurface lines
Sewage collection facilities
General plant and administration
Less accumulated depreciation
Total capital assets,
being depreciated, net
Govermnental activities
capital assets, net
Balance Reclassification/
July 1, 2002 Additions
$ 115,329 $ - $
108,027 1,072,620
223,356
12,152,655
23,923,020
50,393
1,072,620
Balance
Retirements June 30, 2003
$ 115,329
- 1,180,647
1,295,976
- - 12,152,655
116,203 - 24,039,223
- 50,393
36,126,068 116,203 - 36,242,271
(6,835,091) (228,821) - (7,063,912)
(7,086,402) (634,111) - (7,720,513)
(34,459) (2,315) - (36,774)
(13,955,952) (865,247) - (14,821,199)
22,170,116 (749,044) - 21,421,072
$ 22,393,472 $ 323,576 $ - $ 22,717,048
Depreciation expense for District activity was $865,247 for the year ended June 30, 2003.
57
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
6. LONG-TERM DEBT
Long-term debt outstanding at June 30, 2003, was as follows:
Balance
Balance
Due in
Due in More
July 1, 2002
Additions Deletions
lune 30, 2003
One Year
Than One Year
San Rafael Joint Powers Financing Authority:
1997 Authority Revenue Bonds
$ 3,335,000
$ - $ (515,000)
$ 2,820,000
$ 475,000
$ 2,345,000
2003 Authority Lease Revenue Bonds
-
7,605 000 -
7,605,000
7,605,000
Total revenue bonds
3,335,000
7,605,000 (515,000)
10,425,000
475,000
9,930,000
San Rafael Redevelopment Agency fax Allocation Bonds
Series 1992
14,115,000
- (14,115,000)
-
-
-
Series 1995
7,445,000
- (7,445,000)
-
-
-
Series 1999
21,919,004
- (550,000)
21,369,004
575,000
20,794,004
Series 2002
25,020,000 (1,475,000)
23 545,000
111001000
22,445,000
Total tax allocation bonds
43,479,004
25,020,000 (21,585,000)
44,914,004
1,675,000
43,239,004
Special Assessment Bonds (with governmental commitment):
Peacock Gap Refunding
760,000
- (175,000)
585,000
185,000
400,000
Mariposa Road Assessment
110,000
- (15,000)
95,Oo0
15,000
80,000
Total special assessment bonds
870,000
(190,000)
680,000
200,000
480,000
Note Payable
169,000
- -
169,000
- 169,000
Capitalized lease obligations
223,726
- (197,132)
26,594
10,775 15,819
Compensated absences
3,883,789
329,348 -
4,213,137
2,811,689 3, 99,448
Total long-term debt
$ 51,960,519
$ 32,954,348 $ (24A87,132)
$ 60,427,735
$ 5,174,464 $ 55,253,271
Component Unit - San Rafael Sanitation District:
2001 Certificates of Participation $ 4,130,955 $ $ (102,032) $ 1,828,923 $ 502,010 $ 3,326,913
A. 1997Authority Revenue Bonds -Original Issue $5,250,000
On January 28, 1997, the Authority issued the 1997 Authority Revenue Bonds in the amount of $5,250,000
bearing interest at rates from 4.00% to 6.00%. The proceeds of the bonds were used to consolidate and
refund the previously issued Lim ted Obligation Refunding Bonds. The bonds mature annually each
September 2 from 1997 to 2011, in amounts ranging from $20,000 to $555,000. Interest is payable
semiartrivally on March 2 and September 2. The bonds are subject to redemption on any March 2 or
September 2 in advance of maturity at the option of the City upon payment of the principal and interest
accrued thereon to the date of redemption, plus a redemption premium ranging from 2.00% to 5.00%.
Revenues from the repayment of the Refunding Bonds and the reserve account are utilized to meet debt
service requirements of the Revenue Bonds, The Refunding Bonds are secured by unpaid reassessments
confirmed against private property within the Reassessment District. The outstanding balance of the bonds
was $2,820,000 as of June 30, 2003.
58
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
6. LONG-TERM DEBT, Continued
A. 1997Authority Revenue Bonds -Original Issue $5,250,000, Continued
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30, Principal Interest Total
2004
$ 475,000
$ 169,384
$ 644,384
2005
490,000
139,741
629,741
2006
515,000
108,004
623,004
2007
215,000
84,647
299,647
2008
200,000
71,034
271,034
2009-2012
925,000
135,988
1,060,988
Total
$ 2,820,000
$ 708,798
$ 3,528,798
B. 2003 Authority Lease Revenue Bonds -Original Issue $7,605,000
On March 26, 2003, the Authority issued the 2003 Authority Lease Revenue Bonds in the amount of
$7,605,000 bearing interest at rates from 3.00% to 4.70%. The proceeds of the bonds were provided for the
design and construction of a new public parking garage. The bonds mature annually each April 1 from
2006 to 2023, in amounts ranging from $150,000 to $290,000. Interest is payable semiannually on April 1
and October 1. The bonds maturing on or after April 1, 2011 are subject to optional redemption prior to
maturity on or after April 1, 2010 at the option of the City, as a whole on any date. The Lease Revenues are
secured by lease payments made by the City to the Authority for leasing the City facilities. The outstanding
balance of the bonds was $7,605,000 as of June 30, 2003.
The amlual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2004
$ -
$ 330,207
$ 330,207
2005
345,566
345,566
2006
150,000
345,566
495,566
2007
155,000
341,066
496,066
2008
160,000
336,416
496,416
2009-2013
885,000
1,600,305
2,485,305
2014-2018
1,080,000
1,410,387
2,490,387
2019-2023
1,335,000
1,151,203
2,486,203
2024-2028
1,685,000
799,750
2,484,750
2029-2033
2,155,000
333,750
2,488,750
Total
$ 7,605,000
$ 6,994,216
$ 14,599,216
59
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
6. LONG-TERM DEBT, Continued
C. 1992 Tax Allocation Refunding Bonds - Original Issue $18,615,000
On May 1, 1992, the Agency issued Tax Allocation Refunding Bonds in the amount of $18,615,000. The
proceeds of the bonds were used to refund $10,905,000 outstanding principal of the Agency's Central San
Rafael Redevelopment Project Tax Allocation Bonds, Series 1985, to fund the construction of new
improvements within the Project Area. The Bonds were refunded by the 2002 TABS and were fully paid as
of June 30, 2003.
D. 1999 Tax Allocation Bonds -Original Issue $23,504,004
On June 16, 1999, the Agency issued Tax Allocation Bonds in the amount of $23,504,004. The bonds were
issued as Current Interest Bonds in the aggregate principal amount of $21,115,000 and as Capital
Appreciation Bonds in the original amount of $2,389,004. The proceeds of the bonds were used to finance
certain redevelopment activities of benefit to the Agency's Central San Rafael Redevelopment Project Area.
The Current Interest Bonds mature annually each December 1 from 2000 to 2022, in amounts ranging from
$560,000 to $1,460,000 and bear interest at rates ranging from 4.50% to 5.00%. Interest is payable
semiannually on June 1 and December 1. The Current Interest Bonds maturing on or after December 1,
2008, are subject to optional redemption prior to maturity, in whole or in part, either in inverse order of
maturity or on a pro rata basis among maturities, on any date on or after December 1, 2007, at a price equal
to the principal amount, plus accrued interest on the redemption date, plus a premium ranging from 0.00%
to 2.00%. The Capital Appreciation Bonds mature annually after December 1 from 2018 to 2022, in amounts
ranging from $1,440,000 to $2,070,000 and bear interest at rates ranging from 5.58% to 5.60%. Interest on the
Capital Appreciation Bonds will compound on each interest premium date and will be payable solely at
maturity. The bonds are secured, on parity with the 1992 and 1995 bonds, by a pledge and lien on tax
revenues and amounts on deposit in certain funds and accounts held by the fiscal agent. The outstanding
balance of the bonds was $21,369,004 as of June 30, 2003.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30, Principal
2004 $ 575,000
2005
2006
2007
2008
2009-2013
2014-2018
2019-2023
Total
605,000
630,000
665,000
695,000
4,025,000
5,160,000
9,014,004
Interest
$ 922,881
894,856
865,525
834,769
802,469
3,463,094
2,327,250
861,125
Total
$ 1,497,881
1,499,856
1,495,525
1,499,769
1,497,469
7,488,094
7,487,250
9,875,129
$ 21,369,004 $ 10,971,969 $ 32,340,973
60
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
6. LONG-TERM DEBT, Continued
E. 2002 Tax Allocation Refunding Bonds -Original Issue $25,020,000
On October 9, 2002, the Agency issued Tax Allocation Refunding Bonds in the amount of $25,020,000. The
proceeds of the bonds were used to refund the 1992 Tax Allocation Refunding Bonds and the 1995 Tax
Allocation Bonds. The Bonds mature amrually each December 1 from 2002 to 2018, in amounts ranging
from $540,000 to $1,920,000 and bear interest at rates ranging from 2.00% to 5.25%. Interest is payable
semiannually on June 1 and December 1. The Bonds maturing on or after December 1, 2013, are subject to
optional redemption prior to maturity, in whole or in part, either in inverse order of maturity or in inverse
order of maturity and by lot within any one maturity dates, on any date on or after December 1, 2012, at a
price equal to the principal amount, plus accrued interest on the redemption date. The bonds are payable
from tax revenues to be derived from the redevelopment activities of the Agency related to the Central San
Rafael Redevelopment Project Area. The outstanding balance of the bonds was $23,545,000 as of June 30,
2003.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2004
$ 1,100,000
$ 969,426
$ 2,069,426
2005
1,120,000
947,225
2,067,225
2006
1,145,000
924,575
2,069,575
2007
1,165,000
901,475
2,066,475
2008
1,195,000
876,381
2,071,381
2009-2013
6,790,000
3,558,479
10,348,479
2014-2018
8,720,000
1,630,876
10,350,876
2019-2021
2,310,000
202,338
2,512,338
Total
$ 23,545,000
$ 10,010,775
$ 33,555,775
F. Peacock Gap Reassessment District Limited Obligation Refunding Improvement Bonds - Original
Issue $2,405,000
On October 7, 1993, the City issued Limited Obligation Refunding Improvement Bonds for the Peacock Gap
Reassessment District in the amount of $2,405,000. The proceeds of the bonds were used to constitute a
trust fund for the redemption and payment of principal and interest on the City of San Rafael Improvement
Bonds of the Peacock Gap Improvement District, dated September 4, 1984. Interest is payable semi-
annually on each March 2 and September 2, corrunencing March 2, 1994, at rates ranging from 4.00% to
5.75 %. As of June 30, 2003, the outstanding balance of the bonds was $585,000.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2004 $
185,000
$ 28,085
$ 213,085
2005
190,000
17,490
207,490
2006
210,000
6,038
216,038
Total $
585,000
$ 51,613
$ 636,613
61
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
6. LONG-TERM DEBT, Continued
G. Mariposa Road Assessment District Limited Obligation Improvement Bonds -Original Issue $233,688
On January 6, 1993, the City issued Limited Obligation Refunding Improvement Bonds for the Mariposa
Road Assessment District in the amount of $233,688. The proceeds of the bonds were used to finance the
grading and paving of Mariposa Road, to fund a Reserve Fund, and to pay the costs of issuance on the
bonds. The bonds are issued as Serial Bonds and mature in various amounts on each September 2
commencing September 2, 1994 and ending September 2, 2008. Interest shall be payable commencing on
March 2,1993, and serniannually thereafter on September 2 and March 2 of each year until maturity, at rates
ranging from 4.50% to 6.90%. As of June 30, 2003, the outstanding balance of the bonds was $95,000.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30, Principal Interest Total
2004
$ 15,000 $
5,955
$ 20,955
2005
15,000
4,958
19,958
2006
15,000
3,946
18,946
2007
15,000
2,926
17,926
2008
15,000
1,898
16,898
2009
20,000
690
20,690
Total
$ 95,000 $
20,373
$ 115,373
H. Defeased Bonds
On October 9, 2002, the Agency issued Tax Allocation Refunding Bonds in the amount of $25,020,000. The
proceeds of the bonds were used to refund and defease the outstanding principal of $7,445,000 of the 1995
Tax Allocation Bonds. The bonds have been 100% defeased and the liability has been removed from the
Long -Term Debt.
The balance of the defeased bonds outstanding as of June 30, 2003, was $7,230,000.
L Note Payable
At June 30, 2003, Notes Payable consisted of a $169,000 promissory note bearing interest at 8% with
principal and accrued interest due and payable in November 2024. The note was assumed to finance the
purchase of certain property by the Agency.
62
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
6. LONG-TERM DEBT, Continued
J. Capitalized Lease Obligations
The City leased two copiers. Copier one is in the amount of $16,800. The monthly lease payment is $280 for
five years. The lease expires in 2004. Copier two is in the amount of $11,880. The monthly lease payment is
$198 for five years. The lease expires in 2006.
The City leased furniture in the amount of $30,939. The monthly lease payment of $619 for five years
started in July 2000. The lease expires in 2006.
The future minimum lease obligations are due as follows:
Year Ending
June 30,
Copiers
Furniture
'Total
2004
$ 5,888
$ 7,471
$ 13,359
2005
2,490
7,379
9,869
2006
2,317
1,049
3,366
Minimum lease payments
10,695
15,899
26,594
Less amount
representing interest
(1,728)
(2,485)
(4,213)
Present value of minimum
lease payments
$ 8,967
$ 13,414
$ 22,381
K. Compensated Absences
The City accrues a liability for vested and unpaid compensated absences (accrued vacation, sick leave,
compensatory time and administrative leave). The amount expected to be paid subsequent to the fiscal
year end was $1,399,448. The current portion of this liability amounted to $2,813,689 for all funds, with a
combined total of $4,213,137 at June 30, 2003.
L. Component Unit - San Rafael Sanitation District - 2001 Certificates of Participation - Original Issue
$4,710,000
The District and its Financing Corporation on May 1, 2001 issued $4,710,000 of Certificates of Participation
at discount of $35,121. The certificates are to be used (1) to refund in whole the outstanding Series 1991
Certificates of Participation, (2) to finance the District's share of a new construction corporation yard, (3) to
fund in whole or in part, a reserve fund for the certificates, and (4) to pay certain costs of issuing the
certificates. The certificates are fully registered with principal due annually on August 1 and interest
payable semiannually on February 1 and August 1. The certificates are subject to optional prepayment on
any date on or after August 1, 2009. Terms of the Trust Agreement call for a call premium at 101% to
exercise optional prepayment between August 1, 2009 and July 31, 2010, and no premium August 1, 2010
and after.
63
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
6. LONG-TERM DEBT, Continued
L. Component Unit - San Rafael Sanitation District - 2001 Certificates of Participation - Original Issue
$4,710,000, Continued
The transaction advance refunded the 1991 Certificates by placing an amount in an irrevocable escrow fund
sufficient to retire the debt on August 1, 2001, terminating and legally defeasing the 1991 Certificates. The
excess of the reacquisition price over the net carrying amount of the debt defeased resulted in a deferred
amount on refunding of $250,973. The deferred amount on refunding as well as the discount are carried as
a reduction of the certificates of participation to be amortized on a straight-line basis over the life of the new
debt as a component of interest expense. The transaction reduced total cash out flows by $44,969 and
resulted in an economic gain of $263,736.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30, Principal Interest Total
2004
$ 345,000
$ 157,010
$ 502,010
2005
350,000
145,020
495,020
2006
365,000
132,142
497,142
2007
380,000
118,170
498,170
2008
395,000
103,050
498,050
2009-2012
2,220,000
227,555
2,447,555
Total
$ 4,055,000
$ 882,947
$ 4,937,947
Total debt outstanding as of June 30, 2003, net of discounts and deferred amount on refunding were as
follows:
Principal outstanding at June 30, 2002
$ 4,055,000
Less:
Discount
(28,155)
Deferred amount on refunding
(197,922)
Net bonds outstanding at June 30, 2003
$ 3,828,923
The City complied with all significant bond covenants relating to reserve and sinking fund requirements,
proof of insurance and budgeted revenue and maintenance costs.
64
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
7. NON -CITY OBLIGATIONS
The following bond issues are not reported in the City's financial statements, because these are special
obligations payable solely from and secured by specific revenue sources described in the resolutions and
official statements of the respective issues. Neither the faith and credit nor the taxing power of the City, the
Agency, the State of California or any political subdivision thereof, is pledged for payment of these bonds.
Project
Original
Outstanding
Description
Amount
June 30, 2003
San Rafael Redevelopment Agency
162-175 Belvedere
Multifamily Housing Revenue Bonds
Apartments
$ 3,590,529
$ 1,467,597
California Statewide Communities
Development Authority Revenue Bonds
St. Marks School
5,605,000
5,605,000
San Rafael Redevelopment Agency
Variable Rate Demand Multifamily
55 Fairfax
Housing Revenue Bonds
Apartments
3,000,000
3,000,000
San Rafael Redevelopment Agency
San Rafael Commons
Multifamily Housing Revenue Bonds-2001 A
Apartments
3,220,000
3,203,810
City of San Rafael
Kaiser Foundation
Variable Rate Revenue Bonds
Hospitals
275,000,000
275,000,000
8. FUND BALANCES RESERVATIONS AND DESIGNATIONS
Fund balances consist of reserved and unreserved amounts. Reserved fund balances represent that portion
of a fund balance which is not appropriable for expenditure or is legally segregated for a specific future use.
The remaining portion is unreserved fund balances. Portions of unreserved fund balances may be
designated to indicate tentative plans for financial resource utilization in a future period, such as for general
contingencies or capital projects. Such plans or intent are subject to change, have not been legally
authorized and may not result in expenditures.
65
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
8. FUND BALANCES RESERVATIONS AND DESIGNATIONS, Continued
A detailed schedule of the fund balances at June 30, 2003, is shown as follows:
Major Funds
Special Revenue
Traffic and Non -Major
Redevelopment Housing Development Governmental
General Agency Mitigation Services Funds Total
Reserved:
Encumbrances
$ -
$ - $ - $
- $ 2,856
$ 2,856
Petty cash
3,947
- -
- -
3,947
General plan
206,569
- -
- -
206,569
Department savings
760,910
- -
- -
760,910
Employee M.O.U.
626,535
- -
- -
626,535
Loans receivable
346,231
325,156 -
- 35,000
706,387
Debt service
-
- -
- 2,059,797
2,059,797
Improvement projects
43,606
19,753,307 -
436,605 1,832,866
22,066,384
Information systems projects
134,251
- -
- 352,261
486,512
Equipment replacement
-
- -
- 11,500
11,500
Buildings and structures
-
- -
- 39,600
39,600
Facility closures
-
- -
- 60,000
60,000
Assessment districts/open space
67,386
- -
- 362,443
429,829
Mello Roos assessment
-
- -
- 400,000
400,000
Educational Revenue Augmentation Fund
168,469
- -
- -
168,469
Traffic Mitigation
-
- 9,446,427
- _: -
9,446,427
Housing
-
1,577,500 -
- -
1,577,500
Total reserved
2,357,904
21,655,963 9,446,427
436,605 5,156,123
39,053,222
Unreserved, Designated:
Emergency and cash flow
3,861,850
- -
-
3,861,850
Libiary/endowments
-
- -
- 738,023
738,023
Public safety
-
- -
- 74ZI97
742,197
Grant projects
-
- -
- 126,859
126,839
Park projects
-
- -
- 568,434
568,434
Gas tax projects
-
- -
- 1,356,045
Mi56,045
Street projects
-
- -
- 2,136,090
2,136,090
Total designated
3,861,850
- -
- 5,667,648
9,529,498
Unreserved, Undesignated
277,768
- 85,714
- 525,443
888,925
Total
$ 6,497,522
$ 21,055,963 $ 9,532,141 $
436,605 $ 11,349,414
$ 49,471,645
66
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
9. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
Major Funds:
General Fund
Traffic and Housing Mitigation
Development Services
Total major funds
Non -Major Funds:
Recreation Revolving
Street Maintenance and Cleaning
Library
Grants
Parkland Dedication
Emergency Medical Services
Mariposa Assessment District
Park Capital Projects
Total non -major funds
Appropriations Expenditures Excess
$ 36,392,819
$ 38,257,263
$ 1,864,444
-
234,598
234,598
-
109,418
109,418
36,392,819
38,601,279
2,208,460
2,160,177
2,268,233
108,056
1,657,313
2,329,733
672,420
237,021
301,730
64,709
514,030
1,181,931
667,901
-
798
798
3,211,558
3,381,878
170,320
22,955
24,689
1,734
-
329,725
329,725
$ 7,803,054 $ 9,818,717 $ 2,015,663
General Fund - Public Safety Departments (police and fire combined) exceeded their overtime budgets for
the current year (1.2 million). Additionally, $660,000 for special projects that were budgeted in prior years
was spent in the current year.
Traffic & Housing Mitigation - Special projects or capital assets that were budgeted in prior years was spent
in the current year.
Development Services - Consulting services of $20,222 was not anticipated and the remaining variance was
for special projects budgeted in previous years.
Recreation Revolving - Wages and Fringe Benefits were under -budgeted.
Street Maintenance and Cleaning - Street Improvement Capital Asset Project of $764,000 from prior year
budget occurred in the current year.
Librar - $53,000 of prior year special project expense occurred in the current year.
Grants - Public safety grant monies in the amount of $627,000 that were not anticipated became available
(see intergovernmental revenues) and subsequently were expended.
Parkland Dedication - Final expenses on a park project started and budgeted in the previous fiscal year.
Emergency Medical Services - Overtime for paramedic service due to injuries, worker's compensation
disability pay.
Mariposa Assessment District - Annual debt service under -budgeted by $1,734.
Park Capital Projects - New monies became available (see inter -government revenues) that were expended
n1 the current year.
67
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
10. EMPLOYEES' RETIREMENT PLAN
A. Plan Description
The City contributes to the Marin County Employees' Retirement Fund (Fund). All full-time and
permanent part-time employees are eligible to participate.
The fund is an agent multiple -employer defined benefit retirement plan that acts as a common investment
and administrative agent for various local governmental agencies within the County of Marin. The Fund
provides retirement, disability, and death benefits based on the employee's years of service, age, and final
compensation. Employees vest after five years of service and are eligible to receive retirement benefits after
10 years of service and having attained the age of 50, or 30 years of service (20 years for safety employees)
regardless of age. These benefits provisions and all other requirements are established under the County
Employees Retirement Law of 1937. The City's retirement plan is included in a separately issued report
from the Marin County Employees' Retirement Fund, which can be obtained from William M. Mercer,
Incorporated, 3 Embarcadero Center, Suite 1500, San Francisco, CA 94111-4015.
B. Funding Policy
The funding policy of the Fund provides for actuarially determined periodic contributions by the City at
rates such that sufficient assets will be available to pay Fund benefits when due. The City contributed
7.65% of payroll to the Fund for public safety personnel and 7.41 % for other covered employees for the year
ended June 30, 2003. The City, due to a collective bargaining agreement, also has a legal obligation to
contribute one-half of the employees' contribution up to a maximum of 7% of payroll for safety employees
and a maximum of 5% of payroll for all other employees. Employees have an obligation to contribute the
remaining portion. During the year, the maximum City contribution rate was reduced to the first 5% and
4% for police safety employees and all non -safety employees, respectively.
C. Annual Pension Cost
The City's annual pension cost to the Fund for the year ended June 30, 2003, of $2,880,000 was equal to the
City's required and actual contributions. The annual required contribution was determined as part of the
actuarial valuation performed as of June 30, 2003. The employer rates for normal cost is determined using
the Entry Age Normal Actuarial Cost Method, a projected benefit cost method. It takes into account those
benefits that are expected to be earned in the future as well as those already accrued. The significant
assumptions used in the 2002 actuarial valuation include an assumed rate of return on investment assets of
8.25%, and am-Lual payroll increases of 4.12% per year reflecting 4.25% for inflation and approximately
1.00% for merit and longevity. Actual rate of return on investment was 4.73% and payroll increased 6.10%.
The actuarial value of assets was determined using techniques that smooth the effects of short-term
volatility in the market value of investments over a period of five years. The Fund also uses the level
percentage -open method to amortize the unfunded actuarial liability which was revised to sixteen years left
in the amortization period. It is assumed that payroll increases at an annual inflation rate of 4.25% over the
amortization period.
i
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
10. EMPLOYEES' RETIREMENT PLAN, Continued
D. Three -Year Historical Trend Information
Fiscal Year Annual Pension
Ending
Cost (APC)
6/30/2001
$ 2,187,000
6/30/2002
2,880,000
6/30/2003
3,349,490
Percentage of
APC Contributed
100%
100 %
100 %
Net Pension
Obligation
11. PUBLIC AGENCY RETIREMENT SYSTEM (DEFINED CONTRIBUTION RETIREMENT PLANS)
The City contributes to the Public Agency Retirement System (PARS), which is a defined contribution
retirement plan. A defined contribution retirement plan provides retirement benefits in return for services
rendered, provides an individual account for each participant, and specifies how contributions to the
individual's accounts are to be determined instead of specifying the amount of benefits the individual is to
receive. The plans are administered by Phase II located at P.O. Box 10009, Costa Mesa, California 92627.
Under a defined contribution pension plan, the benefits a participant will receive depend solely on the
amount contributed to the participant's account, the returns earned on investments on those contributions,
and forfeitures of other participant's benefits that may be allocated to such participant's account.
As established by the plan, all eligible non represented employees of the City will become a participant 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.
Contributions made by an employee and the employer vest immediately. As determined by the plan, each
employee must contribute 3.75% of gross earnings to the plan. The City contributes an additional 3.75% of
the employee's gross earnings.
During the year, the City contributed $73,445 and employees contributed $73,445. The total covered payroll
of employees participating in the plan for the year ended June 30, 2003, was $1,958,533. The total payroll for
the year was $32,553,390.
Additionally, the City participates in a 401(a) tax qualified plan for eligible non -represented
management/mid-management employees. This is an employer only contribution program separate from
the Martin County Employees' Retirement Fund. The City Manager, as Plan Administrator, annually
determines the percent amount of contribution which can range from 0% to 5% of base salary of eligible
employees. During the year, the City contributed $51,100 to the plan on behalf of the eligible employees.
69
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
12. POST -EMPLOYMENT HEALTHCARE BENEFITS
The City provides certain health care benefits for retired employees and their spouses. The benefit
provisions were established under the authority of the 1937 Act, Section 31450, et. seq. of the
Government Code. Substantially all of the City's employees may become eligible for these benefits
if they are receiving a retirement benefit from the Marin County Employees' Retirement Fund
within 120 days of retirement from City employment. At June 30, 2003, 212 retirees and surviving
spouse received post -employment health care benefits. Those expenditures are reduced by
reimbursements from the Marin County Retirement Office of the annual amount set forth in the
County Retirement Rules and Regulations 1937 Act as amended and in Sections 31450 et. seq. of
the Government Code. The cost of retiree health care benefits is recognized as an expenditure as
claims are paid. For the fiscal year ended June 30, 2003, those costs totaled $985,347, of which
$592,238 was reimbursed.
13. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City is self -insured up to a
maximum of $500,000 for each general liability claim, $250,000 for each workers' compensation claim, and
$25,000 for each property damage claim. The City participates in a public agency risk sharing pool
(California Joint Powers Risk Management Authority) for general liability claims in excess of the self -
insured amounts up to $24,500,000. The City purchases commercial insurance for workers' compensation
claims in excess of the self -insured amount up to $9,750,000. The City also purchases commercial insurance
for property damage claims with insured amount of $35,615,500. The City accounts for and finances its
uninsured risks of loss in the internal service funds. The City had established a claims liability of $3,770,733
at June 30, 2003, based on the requirement of GASB Statement No. 10, Accounting and Financial Reporting for
Risk Financing and Related Insinviice Issaes, which requires that a liability for claims be reported if
information prior to the issuance of the financial statements indicates that it is probable that a liability has
been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.
Settled claims have not exceeded this coverage in any of the past three fiscal years.
Changes in the general and workers' compensation claims liabilities for the fiscal years ended June 30, 2001,
2002, and 2003, are as follows:
General
Liability
2000-0"1 $
2001-02
2002-03
Worker's
Compensation
Liability
2000-01
2001-02
2002-03
Balance at
Beginning of
Fiscal Year
286,349
184,703
504,972
Current Year
Claims and Changes
In Estimates
$ 263,884
1,372,096
1,115,872
Claim
Payments
$ (365,530)
(1,051,827)
(1,127,444)
Balance at
Current Year
Beginning of
Claims and Changes
Claim
Fiscal Year
In Estimates
Payments
$ 2,112,114
$ 1,410,416
$ (953,207)
2,569,323
2,207,423
(1,612,809)
3,16'1,937
1,470,860
(1,357,464)
Balance at
End of
Fiscal Year
$ 184,703
504,972
493,400
Balance at
End of
Fiscal Yew
$ 2,569,323
3,163,937
3,277,333
70
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
13. RISK MANAGEMENT, Continued
The California Joint Powers Risk Management Authority - which began operations in February 1986, is a
governmental self-insurance cooperative organized under a joint power agreement consisting of 23
members which represent over 120 public agencies in California. The Risk Management Authority pools
self-insurance losses of charter and associate members, develops risk management programs, and provides
for administration of pooled coverage claims. The City paid $278,091 in premiums to the Risk Management
Authority during the fiscal year ended June 30, 2003. Condensed financial information for the California
Joint Powers Risk Management Authority for the fiscal year ended June 30, 2003, was as follows:
Assets $ 71,750,583
Liabilities $ 38,040,959
Net Assets 33,709,624
Total liabilities and net assets $ 71,750,583
Revenues $ 19,488,703
Expenses (4,448,728)
Refunds to members (4,753,357)
Change in net assets $ 10,286,618
14. JOINT VENTURES, JOINTLY GOVERNED ORGANIZATIONS AND RELATED PARTY
TRANSACTIONS
A. Joint Ventures
The City participates in various organizations that are formally organized and are separate entities
established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these
entities exercise full powers and authorities within the scope of the related Joint Powers Agreement
including the preparation of amzual budgets, accountability for all funds, the power to make and execute
contracts, and the right to sue and be sued. Obligations and liabilities of the separate entities are not those
of the City.
The Marin Counhi Integrated On -Line Librani System (System) - was formed to provide for the procurement,
ownership, operation, maintenance, and governance of an integrated on-line library system that is jointly
owned and operated by the cities of San Rafael, Mill Valley, Sausalito, and the County of Mari. The
Governing Board of the System consists of the library director or designated alternate of each participant in
the System. In accordance with the cost sharing formula developed by the library directors of the
participants, the City's share of the acquisition cost in the amount of $108,007 represents 18.98% of
ownership in the System. Operating costs for the System are also shared by each participant by applying
the cost sharing formula. Financial statements of the System can be obtained at the County Librarian,
Marin Count Free Library, Civic Center, Administration Building, San Rafael, California 94903.
71
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
14. JOINT VENTURES, JOINTLY GOVERNED ORGANIZATIONS AND RELATED PARTY
TRANSACTIONS, Continued
A. Joint Ventures, Continued
Vie Marin Street Light Acquisition Joint Powers Autlwriht (MSLAJPA) - was formed by the County of Marin
and twelve local agencies to acquire street light facilities, operate the facilities during the pendency of an
eminent domain action against PG&E, and the subsequent transfer of the facilities to the individual local
agencies. The Governing Board consists of five members from the participating agencies. Each of the local
agency's shares of contribution was based on the number of street lights to be acquired in the local agency's
individual jurisdiction in relation to the total number of street lights to be acquired by the MSLAJPA.
Financial Statements of the MSLAJPA can be obtained at the 27 Commercial Blvd. Suite C, Novato,
California 94949.
The Marin Emergency Radio Autliorih� - 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. On February 1, 1999, the Authority issued the 1999 Revenue Bonds in the amount of $26,940,000
with interest rates ranging from 4.75% to 5.01%, maturing on August 15, 2016, to finance the acquisition and
installation of the system. The costs of maintenance, operation, and debt service will be divided on a pro
rata share based on an agreed -upon formula established by a majority of the Governing Board. The
members entered into a Project Operating Agreement on February 1, 1999. Under the Operating
Agreement, members are obligated to contribute service payments to cover the Authority's operation and
debt service. The City's portion of the obligation is 16.913%. The first operating service payment was in
July 1999. The first debt service payment was for August 2002. The City has established a reserve in its
internal service funds to pay future service payments.
B. Jointly Governed Organizations
Die Countywide Planning AgencnIL - was established by the County of Marin and ten local cities to implement
countywide performance standards for traffic, housing, water and sewer facilities, and environmental
protection to ensure that residential and commercial growth does not exceed local water, sewer and
transportation capacities. The Governing Board of the Countywide Planning Agency consists of one
member of the County Board of Supervisors and one member of the City Council of each participating city.
The Marin County Cable Rate Regulation Joint Powers Auffiorihl - was established to regulate the rates for cable
television service and equipment and to advise the participants in their exercise of their license authority.
The Governing Board of the Martin County Cable Rate Regulation Joint Powers Authority consists of one
member from each of the seven participating local cities.
The Marin Counhj Major Crimes Task Force - was established by 12 local law enforcement agencies to provide
funding and policy direction of a unit of peace officers and support personnel to detect, apprehend, and
prosecute major crimes, including highly mobile criminal narcotic traffickers, thus reducing major narcotic
activity and combating its influence throughout the County. The Governing Board of the Marin County
Major Crimes Task Force consists of nine members: one city council member, one member of the Marin
County Board of Supervisors, two city managers, two chief law enforcement officials, two residents of
Marin County, and the Marin County Administrator. The City of San Rafael's participation ended in June
2003.
72
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
14. JOINT VENTURES, JOINTLY GOVERNED ORGANIZATIONS AND RELATED PARTY
TRANSACTIONS, Continued
B. Jointly Governed Organizations, Continued
The Marin County Hazardous and Solid Waste Toint Powers Authorih,� - 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.
Friends of San Rafael - a California nonprofit Public Benefit Corporation - was established to help finance and
accomplish the City's efforts to erect, construct and maintain public buildings, roads, monuments, plazas,
parks, gardens, safety features and similar public improvements and infrastructure.
15. CONTINGENT LIABILITIES
The City is a defendant is various lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City's legal counsel that resolution of these matters will not have a
material adverse effect on the financial condition of the City.
16. PRIOR PERIOD ADJUSTMENTS
A. Government -Wide Statements
During the fiscal year 2003, the City implemented GASB Statement No. 34 which resulted in the following
adjustments. Also the City recorded some prior period adjustments to record last year GASB Statement No.
31, reverse last year interest accrual and to record some advances.
Net Assets
GASB 34 Adjustments
as
Previously
Capital
Long-term
Interest
Net Assets
Reported
Assets
Debt
Accrual
as Restated
Governmental Activities:
Net assets
$
47,860,919
$
234,987,857
$
(51,960,519)
$ (233,786)
$
230,654,471
Total governmental activities
$
47,860,919
$
234,987,857
$
(51,960,519)
$ (233,786)
$
230,654,471
Business -Type Activities:
Net assets
$
934,173
$
8,257,952
$
-
$ -
$
9,192,125
Total business -type activities
$
934,173
$
8,257,952
$
-
$ -
$
9,192,125
73
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2003
16. PRIOR PERIOD ADJUSTMENTS, Continued
B. Fund Financial Statements
The following prior period adjustments were made in the fund financial statements:
Governmental Funds:
Redevelopment Agency Fund
Proprietary Funds:
Parking Services Enterprise Fund
Total
Net Assets,
as Previously Prior Period Adjustments Net Assets,
Reported Surety Bond Capital Assets as Restated
$ 14,191,388 $ (631,574) $ - $ 13,559,814
934,173 - 8,257,952 9,192,125
$ 15,125,561 $ (631,574) $ 8,257,952 $ 22,751,939
Redevelopment Agency Fund -Restricted cash and investment was previously recorded incorrectly due to the
surety bonds for the 1995 Agency bonds.
Parking Services Enterprise Fund - As a result of implementation of GASB Statement No. 34, the City
conducted an inventory and evaluation of its capital assets resulting in restatement of certain capital assets
in Parking Services Enterprise Fund.
74
REQUIRED SUPPLEMENTARY INFORMATION
75
City of San Rafael
Required Supplementary Information
For the year ended June 30, 2003
1. BUDGETS AND BUDGETARY ACCOUNTING
The City adopts a budget on a biannual basis, to be effective July 1 for the ensuing and subsequent fiscal
years. The two year budget reflects estimated revenues and expenditures for each fiscal year. From the
effective date of the budget, which is adopted at the department level, the amounts stated therein as
proposed expenditures become appropriations to the various City departments. The City Council may
amend the budget by resolution during the fiscal year. Expenditures may not exceed appropriations at the
departmental 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 total
budget. Several supplemental appropriations were approved during the course of the year.
The City legally adopts budgets for all its governmental funds, except for the East Francisco Boulevard
Assessment District, 1915 Act Bonds and 1997 Reassessment Bonds debt service funds, because the City is
only required to make debt service payments in the event of bondholder default.
Encumbrance accounting, under which purchase orders, contracts and other commitments for expenditures
are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of
the budgetary process. Encumbrances outstanding at year end are reported as reservations of fund
balances since they do not constitute expenditures or liabilities and are carried forward in the subsequent
year's budget. All unencumbered appropriations lapse at year end.
76
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2003
1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetary Coiiiparison Scliedide, General Fund
REVENUES:
'Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and property
Intergovernmental
Charges for services
Other
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Public works and parks
Community development/redevelopment
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt Service:
Capitalized lease obligation
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts Actual Positive
F;,,.a A-,,., ,. (Nr,,,.,r:-,
$ 31,016,780
$ 31,461,780
$ 31,681,932
$ 220,152
5,695,550
592,050
727,918
135,868
904,890
836,890
769,632
(67,258)
350,400
350,400
863,927
513,527
4,864,550
5,091,550
5,183,327
91,777
1,073,673
957,373
1,127,000
169,627
68,050
76,050
168,710
92,660
Al 071 Ant
10 1L1 not
An G" AA(.
t 'I-r 1^
4,834,351
4,842,046
4,549,673
292,373
22,054,980
22,033,203
23,269,169
(1,235,966)
5,434,952
5,394,190
5,744,776
(350,586)
2,174,591
2,147,328
1,926,425
220,903
1,826,959
1,787,384
1,770,538
16,846
182,769
163,668
84,985
78,683
25,000
25,000
714,827
(689,827)
-
-
197,132
(197,132)
36,533,602
36,392,819
38,257,525
(1,864,706)
7,440,291
2,973,274
2,264,921
(708,353)
769,652
1,093,264
1,052,142
(41,122)
(3,960,933)
(4,519,851)
(4,519,943)
(92)
(3,191,281)
(1,426,587)
(3,467,801)
(41,214)
$ 4,249,010
$ (453,313)
(1,202,880) $
(749,567)
0 onn Ono
$ 6,497,522
77
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2003
1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetaril Comparison Schedule, Redevelopment AVmcti Futid
REVENUES:
Taxes and special assessments
Use of money and property
Charges for services
Other
Total revenues
EXPENDITURES:
Current:
Community development/redevelopment
Capital outlay
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds from issuance of debt
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year, as restated
End of year
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 4,497,665
$ 4,469,600
$ 4,534,360
$ 64,760
290,000
290,000
666,159
376,159
119,300
119,300
75,999
(43,301)
1,000,000
2,686,109
2,694,709
8,600
5,906,965
7,565,009
7,971,227
406,218
1,410,608
1,414,677
1,307,300
107,377
5,200
5,200
2,417
2,783
300,000
7,534,558
3,505,176
4,029,382
1,350,000
23,585,000
23,585,000
-
2,247,665
3,641,050
3,640,818
232
5,313,473
36,180,485
32,040,711
4,139,774
593,492
(28,615,476)
(24,069,484)
4,545,992
-
25,020,000
25,020,000
-
995,126
35,200,529
35,505,483
304,954
(995,126)
(31,409,850)
(28,359,850)
3,050,000
-
28,810,679
32,165,633
3,354,954
$ 593,492
$ 195,203
8,096,149
$ 7,900,946
13,559,814
$ 21,655,963
78
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2003
1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Bafdgetary Comparison Schedule, Traffic and Housing Mitigation Special Revenue Fund
REVENUES:
Taxes and special assessments
Use of money and property
Charges for services
Other
Total revenues
EXPENDITURES:
Capital improvement/special projects
Total expenditures
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
$ 277,300 $ 277,300
$ 126,103
$ (151,197)
- -
282,224
282,224
350,000 350,000
717,863
367,863
- -
320,044
320,044
627,300 627,300
1,446,234
818,934
$ 627,300 $ 627,300
234,598
(234,598)
234,598
(234,598)
1,211,636
$ 1,053,532
8,320,505
$ 9,532,141
79
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2003
1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetary Contparisoli Seltedule, Houseliold Hazmat Facilittl Special Revenue Fund
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amount
(Negative)
REVENUES:
Licenses and permits
$ 53,500 $
53,500
$ 7,191
$ (46,309)
Use of money and property
25,500
25,500
13,517
(11,983)
Intergovernmental
15,000
15,000
16,670-
1,670
Charges for current services
830,750
830,750
1,268,279
437,529
Other revenue
33,000
33,000
27,503
(5,497)
Total revenues
957,750
957,750
1,333,160
375,410
EXPENDITURES:
Current:
Public safety
948,164
1,300,859
1,300,805
54
Capital outlay
11,807
-
54
(54)
Total expenditures
959,971
1,300,859
1,300,859
-
Net change in fund balances
$ (2,221) $
(343,109)
32,301
$ 375,410
FUND BALANCES:
Beginning of year 403,791
End of year $ 436,092
80
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2003
1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetary Comparison Schedule, Open Space Capital Projects Fund
REVENUES:
Use of money and property
Total revenues
EXPENDITURES:
Current:
Public works and parks
Capital improvement/special projects
Total expenditures
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 25,000 $ 25,000 $
25,000 25,000
11,519 11,519
- 490,000
11,519 501,519
$ 13,481 $ (476,519)
Variance with
Final Budget
Actual Positive
Amounts (Negative)
9,022 $ (15,978)
9,022 (15,978)
2,744
484,236
486,980
8,775
5,764
14,539
(477,958) $ (1,439)
616,727
$ 138,769
2. MARIN COUNTY EMPLOYEES' RETIREMENT SYSTEM SCHEDULE OF FUNDING PROGRESS
Actuarial
Actuarial
Actuarial
Accrued
Excess
Valuation
Value
Liability (AAL)
Assets
Date *
of Assets
Entry Age
Over AAL
6/30/1999
$ 151,466,000
$ 134,247,000
$ 17,219,000
6/30/ 2000
171,663,000
156,806,000
14,857,000
6 / 30/ 2001
186,085,000
172,939,000
13,146,000
* Latest information available.
Excess Assets
Over AAL
Funded
Covered
As a % of
Ratio
Payroll
Payroll
113%
$ 23,293,000
73.9%
109%
23,372,000
63.6%
108%
25,650,000
51.3%
81
This page intentionally left blank.
82
SUPPLEMENTARY INFORMATION
83
This page intentionally left blank.
84
NON -MAJOR
GOVERNMENTAL 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.
Gas Tax Fund - Established to receive and expend the City's allocation of the State gasoline taxes.
Childcare Fund - Established to administer and account for childcare programs at eleven sites throughout the
City.
Street Maintenance and Cleaning Fund - Established to maintain the City's streets, public properties and
rights of way.
Sewer Maintenance Fund - Established under the terms of the JPA to provide all necessary maintenance to
the Sanitation District's gravity collection sewer system.
Loch Lomond Assessment District Fund - Established to provide maintenance for stormwater and geotechnic
mitigation facilities. A Mello Roos District was formed to fund this maintenance.
Library Fund - Established to account for restricted library activities that are intended to be self -funding.
Public Safety Fund - Established for special police services, which are intended to be self -funding.
Storrnwater Fund - Established to provide for a 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, such as the
Farmers Market.
(Continued)
85
This page intentionally left blank.
86
NON -MAJOR
GOVERNMENTAL FUNDS
East Francisco Boulevard Assessment District Fund - Established to accumulate funds for the payment of
principal and interest. The related bonds were defeased in 1995.
Peacock Gap Assessment District Fund - Established to accumulate funds for the payment of principal and
interest for the 1993 Bonds which matures in 2005. The proceeds were used to refund the 1984 Bonds, which
provided for the construction of public improvements in the project area. Financing is to be provided by
property tax increments generated within the specific geographic region described by the bond assessment
district.
1915 Act Bonds Fund - Established to account for the debt service managed by the County of Marin. The
debt service relates to Lucas Valley road improvements.
Mariposa Assessment District Fund - Established to accumulate funds for the payment of principal and
interest for the 1993 Bond, which matures in 2008. The proceeds were used to finance the grading and
paving of Mariposa Road.
1997 Financing Authority Revenue Bonds Fund - Established to accumulate funds for the payment of
principal and interest for the 1997 Revenue Bonds which matures in 2011. The proceeds were used to
purchase the previously issued special assessment bonds. Financing is to be provided by property tax
increments generated within the specific geographic region described by the bond assessment district.
2003 Authority Lease Revenue Parking Bonds - Issued in March 2003 to provide for the design and
construction of a new public parking garage. Bonds mature annually from 2006 to 2023.
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 Districts 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 partnerships with the community.
(concluded)
87
City of San Rafael
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2003
Special Revenue
Baypoint
Lagoon
Street
Recreation
Assessment
Gas
Maintenance
Revolving
Dishict
Tax
Childcare
and Cleaning
ASSETS
Cash and investments
$
34,065
$
17,332
$
1,243,156
$ 48,712
$ 1,083,999
Cash with fiscal agent
-
-
_
_
-
Receivables:
Accounts
216,026
-
-
-
38,774
Grants
-
-
112,889
805
-
Loans
-
-
-
-
_
Dire from other funds
-
-
-
-
-
Total assets
$
250,091
$
17,332
$
1,356,045
$ 49,517
$ 1,122,773
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
$
61,535
$
3,238
$
-
$ 34,120
$ 12,471
Developer bonds payable
-
-
-
-
-
Due to other hinds
4,240
-
-
-
-
Deferred revenue
114,718
-
-
-
-
Total liabilities
180,493
3,238
-
34,120
12,471
Fund Balances:
Reserved
-
-
-
15,397
-
Unreserved:
Designated
-
-
1,356,045
-
1,110,302
Undesignated, reported in:
Special revenue
69,598
14,094
-
-
-
Total fund balances
69,598
14,094
1,356,045
15,397
1,110,302
Total liabilities and fund balances
$
250,091
$
17,332
$
1,356,045
$ 49,517
$ 1,122,773
88
Revenue
Loch Lomond Emergency
Sewer Assessment Public Development Parkland Medical
Maintenance District Library Safety Storniwater Services Grants Dedication Services
$ 736 $ 550,729 $ 376,342 $ 105,010 $ 1,112,279 $ 447,105 $ 466,504 $ 573,434 $ 309,561
- - 158,185 - - - 325,090 - -
- - - - - 21,726
- - - - - - - 30,000 -
$ 736 $ 550,729 $ 534,727 $ 105,010 $ 1,112,279 $ 447,105 $ 791,594 $ 625,160 $ 309,561
30,688 $
- $ 87,226 $
9,000 $
58,802 $
- $
14,160
-
- -
1,500
-
-
-
- -
30,164
- -
-
-
-
-
- -
-
- -
-
-
21,726
-
- -
-. 60,852
- 87,226
10,500
58,802
21,726
14,160
- 400,000
-
- -
436,605
-
35,000
-
736 -
473,875
105,010 1,025,053
-
732,792
568,434
295,401
- 150,729
-
- -
-
-
-
-
736 550,729
473,875
105,010 1,025,053
436,605
732,792
603,434
295,401
$ 736 $ 550,729 $
534,727 $
103,010 $ 1,112,279 $
447,105 $
791,594 $
625,160 $
309,561
(Continued)
89
City of San Rafael
Combining Balance Sheet
Non -Major Governmental Funds, Continued
June 30, 2003
Special
Revenue
Debt Service
East Francisco
Peacock
Boulevard
Gap
1915
Mariposa
Business
Assessment
Assessment
Act
Assessment
Improvement
District
District
Bonds
District
ASSETS
Cash and investments
$ 5,197
$ -
$
340,096
$
- $ 35,640
Cash with fiscal agent
-
-
-
- -
Receivables:
Accounts
-
-
-
- -
Grants
-
Loans
-
-
-
- -
Due from other funds
-
-
-
- -
Total assets
$ 5,197
$ -
$
340,096
$
- $ 35,640
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
$ -
$ -
$
-
$
- $ -
Developer bonds payable
-
-
-
- -
Due to other funds
-
-
-
- -
Deferred revenue
-
-
-
- -
Total liabilities
-
-
-
- -
Fund Balances:
Peserved
-
-
340,096
- 35,640
Unreserved:
Designated
-
-
-
- -
Undesignated, reported in:
Special revenue
5,197
-
-
- -
Total fund balances
5,197
-
340,096
- 35,640
Total liabilities and fund balances
$ 5,197
$ -
$
340,096
$
- $ 35,640
90
Debt Service Capital Projects
1997
2003
Total
Financing
Authority
Park
Non -Major
Authority
Lease Revenue Capital Bedroom Assessment
Capital
Governmental
Revenue Bonds
Parking Bonds Improvement Tax Districts
Projects
Funds
$ 571,935 $ - $ 2,070,067 $ 123,842 $ 223,674 $ - $ 9,739,615
433,299 678,827 - - - - 1,112,126
- - - - - - 254,800
- - - - - 329,725 926,694
- - 30,000 31,726
- - - - - - 30,000
$ 1,005,234 $ 678,827 $ 2,070,067 $ 123,842 $ 223,674 $ 359,725 $ 12,114,961
- $ - $ 170,920 $ - $ - $ 1,285 $ 483,445
- - 1,500
- - - - - 178,843 213,247
- - - - - 30,000 366,444
210,128 864,636
1,005,234 678,827 1,899,147 123,842 223,674 149,597 5,343,059
- - - - - - 5,667,648
- - - - - - 239,618
1,005,234 678,827 1,899,147 123,842 223,674 149,597 11,250,325
$ 1,005,214 $ 678,827 $ 2,070,067 $ 123,842 $ 223,674 $ 359,725 $ 12,114,961
(Concluded)
91
City of San Rafael
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For the year ended June 30, 2003
REVENUES:
Taxes and special assessments
Fines and forfeitures
Use of money and property
Intergovernmental
Charges for current services
Other revenue
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Public works and parks
Community development/redevelopment
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal retirennent
Interest and fiscal charges
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds from issuance of debt
Contributions from Sanitation District
Transfers in
Transfers out
Total other financing sources (uses)
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCES:
Beginning of year
End of year
Special Revenue
Baypoint ..
Lagoons Street
Recreation Assessment Gas Maintenance
Revolving District Tax Childcare and Cleaning
5 - $ 25,241 $ - $ - $
508
182 29,169
54
11,700
48,000
- 1,250,885
256,496
691,208
1,233,898
- -
2,254,993
-
4,430
- 43,942
14,034
102,155
1,286,836
25,423 1,32,1,996
2,525,577
805,063
-
2,227,492
17,749
25,305
29,236
-
-
-
186,818
-
-
241,130
-
2,454,799
10,756
-
1,544,003
-
4,706
781,024
2,270,546
29,236
427,948 -
2,465,555
2,329,733
(983,710)
(3,813)
896,048
60,022
(1,524,670)
1,023,994
(25,000)
-
-
-
-
-
(46,000)
1,653,517
-
998,994
-
-
(46,000)
1,653,517
15,284
54,314
(3,813)
17,907
896,048
459,997
14,022
1,375
128,847
981,455
$ 69,598 $
14,094 $
1,356,045 $
15,397 $
1,110,302
92
Special Pevenue
Loch Lomond
Emergency
Sewer
Assessment
Public
Development
Parkland
Medical
Maintenance
Distinct
Library
Safety
Stormwater
Service
Grants
Dedication
Services
$ -
$ 61,816
$ -
$ -
$ -
$ -
$ -
$ -
$ 2,038,900
-
-
-
-
1,000
-
-
-
-
6,000
7,282
62,152
1,573
8,999
9,988
5,659
8,119
3,060
-
-
215,984
84,010
-
-
997,031
-
-
1,001,670
-
15,865
19,051
808,944
35,332
121,915
-
1,421,583
-
-
19,220
1,030
-
100,055
32,176
8,543
584
1,007,670
69,098
313,221
105,664
818,943
145,375
1,156,781
16,662
3,464,127
-
- -
94,444
-
-
-
- 3,376,661
938,543
- -
-
1,045,432
-
-
- -
-
- -
-
-
20,222
-
- -
-
- 269,446
-
-
-
453,822
- -
-
- -
-
-
-
-
- 5,217
-
- 531051
-
460,883
89,196
728,109
798 -
938,543
- 322,497
94,444
1,506,315
109,418
1,181,931
798 3,381,878
69,127
69,098 (9,276)
11,220
(687,372)
35,957
(25,150)
15,864 82,249
-
- -
25,000
727,340
-
125,000
- -
(74,111)
- -
-
(100,000)
(338,135)
(31,389)
- (407,655)
(74,111)
- -
23,000
627,340
(338,135)
93,611
- (407,655)
(4,984) 69,098 (9,276) 36,220 (60,032) (302,178) 68,461 15,864 (325,406)
5,720 481,631 483,151 68,790 1,085,085 738,783 664,331 587,570 620,807
$ 736 $ 550,729 $ 473,875 $ 105,010 $ 1,025,053 $ 436,605 $ 732,792 $ 603,434 $ 295,401
(Continued)
93
City of San Rafael
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds, Continued
For the year ended June 30, 2003
REVENUES:
Taxes and special assessments
Pines and forfeitures
Use of money and property
Intergovernmental
Charges for current services
Other revenue
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Public works and parks
Community development/redevelopment
Culture and recreation
Capital outlay
Capital improvement/special projects
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds from debt
Contributions from Sanitation District
Transfers in
Transfers out
Total other financing sources (uses)
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCES:
Beginning of year
End of year
Special
Revenue
Debt Service
East Francisco
Peacock
Boulevard
Gap 1915
Mariposa
Business
Assessment
Assessment Act
Assessment
Improvement
District
District Bonds
District
$ -
$ -
$ 236,027 $
- $ 23,057
193
-
3,665
- 418
36,400
-
-
- -
14,427
-
-
- -
51,020
-
239,692
- 23,475
51,675
- - 175,000
- - 56,980
- 15,000
- 9,689
51,675 - 231,980 ---
24,689
(655) - 7,712
- (1,214)
(13,701) (2,537) (67,387) (150)
- (13,701) (2,537) (67,387) (150)
(655) (13,701) 5,175 (67,387) (1,364)
5,852 13,701 334,921 67,387 37,004
$ 5,197 $ - $ 340,096 $ - $ 35,640
94
Debt Service
Capital Projects
1997
2003
Total
Financing
Authority
Park
Non -Major
Authority
Lease Revenue
Capital
Bedroom Assessment
Capital
Governmental
Revenue Bonds
Parking Bonds
Improvement
Tax District
Projects
Funds
$ 670,532
$ -
$ -
$ 12,778 $ -
$ -
$ 3,068,351
-
-
-
- -
-
11000
10,928
-
45,632
1,468 -
1,862
218,611
-
-
13,462
- -
329,725
3,923,201
-
-
-
- -
-
6,913,251
-
-
-
- -
16,715
357,331
681,460
-
59,094
14,246 -
348,322
14,481,745
-
139,355
- -
- - 191,030
-
-
- -
- - 3,471,105
-
-
- -
- - 3,744,032
-
-
- -
- - 20,222
-
-
- -
- - 5,405,559
-
-
- -
- - 38,428
-
-
3,410,738 -
- 329,725 6,119,959
515,000
-
- -
- - 705,000
197,393
141,290
- -
- - 405,352
71Z393
280,645
3,410,738 -
- 329,725 20,100,687
(30,933)
(280,645)
(3,351,644) 14,246
- 18,597 (3,618,942)
- 7,605,000
- -
- - 7,605,000
- -
744,556 -
- 744,556
- -
2,391,500 -
- - 5,946,351
(4,862) (6,645,528)
(2,335,000) -
- - (10,091,455)
(4,862) 959,472
801,056 -
- - 4,204,452
(35,795) 678,827 (2,550,588) 14,246 - 18,597 (1,414,490)
1,041,029 - 4,449,735 109,596 223,674 131,000 12,664,815
$ 1,005,234 $ 678,827 $ 1,899,147 $ 123,842 $ 223,674 $ 149,597 $ 11,250,325
(Concluded)
95
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Recreation Revolving Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Use of money and property
Intergovernmental
Charges for current services
Other revenue
Total revenues
EXPENDITURES:
Current:
Culture and recreation
Capital outlay
Capital improvement/special projects
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amount (Negative)
S 3,000 $
3,000 $
508 $
(2,492)
-
-
48,000
48,000
1,332,957
1,307,957
1,233,898
(74,059)
4,150
4,150
4,430
280
1,340,107
1,315,107
1,286,836
(28,271)
2,163,300
2,111,543
2,227,492
(115,949)
48,634
48,634
17,749
30,885
-
-
25,305
(25,305)
2,211,934
2,160,177
2,270,546
(110,369)
(871,827)
(845,070)
(983,710)
(138,640)
973,994
1,023,994
1,023,994
-
-
(25,000)
(25,000)
-
973,994
998,994
998,994
-
$ 102,167 $
153,924
15,284 $
(138,640)
$ 69,598
96
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Baypoint Lagoons Assessment District Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Taxes and special assessments
Use of money and property
Total revenues
EXPENDITURES:
Current:
Public works and parks
Total expenditures
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amount (Negative)
$ 27,500 $ 27,500 $ 25,241 $ (2,259)
800 800 182 (618)
28,300 28,300 25,423 (2,877)
29,236 29,236 29,236
29,236 29,236 29,236
(936) $ (936)
(3,813) $ (2,877)
J 14,V`74
97
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Gas Tax Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Use of money and property
Intergovernmental
Other revenue
Total revenues
EXPENDITURES:
Current:
Public works and parks
Capital improvement/special projects
Total expenditures
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 40,000 $ 40,000 $
1,098,500 1,098,500
1,138,500 1,138,500
Variance with
Final Budget
Actual
Amount
Positive
(Negative)
29,169
$ (10,831)
1,250,885
152,385
43,942
43,942
1,323,996
185,496
101,578
101,578
186,818
(85,240)
1,210,000
1,210,000
241,130
968,870
1,311,578
1,311,578
427,948
883,630
$ (173,078) $
(173,078)
896,048 $
1,069,126
459,997
$
1,356,045
98
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Childcare Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Use of money and property
Intergovernmental
Charges for current services
Other revenue
Total revenues
EXPENDITURES:
Current:
Culture and recreation
Capital outlay
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTIIER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amount (Negative)
$ 50 $ - $ 54 $ 54
16,000 16,000 256,496 240,496
2,471,367 2,471,367 2,254,993 (216,374)
- - 14,034 14,034
2,487,417 2,487,367 2,525,577 38,210
2,418,809
2,424,816
2,454,799
(29,983)
56,160
52,160
10,756
41,404
2,474,969
2,476,976
2,465,555
11,421
12,448
10,391
60,022
49,631
(187,108)
(187,108)
(46,000)
141,108
(187,108)
(187,108)
(46,000)
141,108
$ (174,660) $
(176,717)
14,022 $
190,739
1,375
$ 15,397
99
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Street Maintenance and Cleaning Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Use of money and property
Intergovernmental
Other revenue
Total revenues
EXPENDITURES:
Current:
Public works and parks
Capital outlay
Capital improvement/special projects
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Budgeted Amounts
Original Final
S 22,500 $ 22,500 $
- 35,000
2,300 2,300
24,800 59,800
1,570,476
1,550,085
7,228
7,228
100,000
100,000
1,677,704
1,657,313
Variance with
Final Budget
Actual
Positive
Amount
(Negative)
11,700
$ (10,800)
691,208
656,208
102,155
99,855
805,063
745,263
1,544,003
6,082
4,706
2,522
781,024
(681,024)
2,329,733
(672,420)
(1,652,904) (1,597,513) (1,524,670) 72,843
1,674,894 1,653,517
1,674,894 "1,653,517
$ 21,990 $ 56,004
1,653,517
1,653,517
128,847 S 72,843
981,455
$ 1,110,302
100
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Sewer Maintenance Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Use of money and property
Charges for current services
Total revenues
EXPENDITURES:
Current:
Public works and parks
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amount
(Negative)
$ 12,000 $ 12,000
$ 6,000
$ (6,000)
998,601 998,601
1,001,670
3,069
1,010,601 1,010,601
1,007,670
(2,931)
939,022
939,022
938,543
479
939,022
939,022
938,543
479
71,579
71,579
69,127
(2,452)
(74,111)
(74,111)
(74,111)
-
(74,111)
(74,111)
(74,111)
-
$ (2,532) $
(2,532)
(4,984) $
(2,452)
5,720
$ 736
101
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Loch Lomond Assessment District Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Taxes and special assessments
Use of money and property
Total revenues
EXPENDITURES:
Current:
Public safety
Total expenditures
Net change in fiord balances
FUND BALANCES:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 61,770 $ 61,770 $
14,700 14,700
76,470 76,470
5,955 5,955
5,955 5,955
70,515 $ 70,515
Variance with
Final Budget
Actual Positive
Amount (Negative)
61,816 $
46
7,282
(7,418)
69,098
(7,372)
5,955
5,955
69,098 $ (1,417)
481,631
102
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Library Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Use of money and property
Intergovernmental
Charges for current services
Other revenue
Total revenues
EXPENDITURES:
Current:
Culture and recreation
Capital improvement/special projects
Total expenditures
Net change in fund balances
FUND BALANCES:
Begriming of year
End of year
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amount
(Negative)
$ 38,200 $
38,200
$ 62,152
$ 23,952
200,209
200,209
215,984
15,775
14,000
14,000
15,865
1,865
12,000
12,000
19,220
7,220
264,409
264,409
313,221
48,812
237,021
237,021.
269,446
(32,425)
-
-
53,051
(53,051)
237,021
237,021
322,497
(85,476)
$ 27,388 $ 27,388
(9,276) $ (36,664)
483,151
$ 473,875
103
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Public Safety Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Use of money and property
Intergovernmental
Charges for current services
Other revenue
Total revenues
EXPENDITURES:
Current:
Public safety
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 1,400 $ 1,400 $
60,500 60,500
18,700 18,700
80,600 80,600
Variance with
Final Budget
Actual Positive
Amount (Negative)
1,573 $ 173
84,010 23,510
19,051 351
1,030 1,030
99,573
99,573
94,444
5,129
99,573
99,573
94,444
5,129
(18,973)
(18,973)
11,220
30,193
25,000 25,000
25,000 25,000
6,027 $ 6,027
25,000
25,000 -
36,220 $ 30,193
104
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Stormwater Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Pines and forfeitures
Use of money and property
Charges for current services
Total revenues
EXPENDITURES:
Current:
Public works and parks
Capital improvement/special projects
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTI"IER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Fatal Amount (Negative)
$ 2,000 $ 2,000 $ 1,000 $ (1,000)
13,000 13,000 8,999 (4,001)
835,000 835,000 808,944 (26,056)
850,000 850,000 818,943 (31,057)
1,062,736
600,000
1,053,574
1,045,432
8,142
600,000
460,883
139,117
1,653,574
1,506,315
147,259
(812,736) (803,574) (687,372)
116,202
736,502 727,340 727,340 -
- (100,000) (100,000)
736,502 627,340 627,340 -
$ (76,234) $ (176,234) (60,032) $ 116,202
1 nCn non
$ 1,025,053
105
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Development Services Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Use of money and property
Charges for services
Other
Total revenues
EXPENDITURES:
Current:
Community development/redevelopment
Capital hnprovement/special projects
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year, as restated
End of year
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 16,000
$ 16,000
$ 9,988
$ (6,012)
-
-
35,332
35,332
-
-
100,055
100,055
16,000
16,000
'145,375
129,375
-
-
20,222
(20,222)
-
-
89,196
(89,196)
-
-
109,418
(109,418)
16,000
16,000
35,957
19,957
-
(338,135)
(338,135)
-
-
(338,135)
(338,135)
-
$ 16,000
$ (322,135)
(302,178)
$ 19,957
738,783
106
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Grants Special Revenue Fund
For the year ended June 30, 2003
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amount
(Negative)
REVENUES:
Use of money and property
$ 5,900 $
5,900
$ 5,659
$ (241)
Intergovernmental
353,000
340,000
997,031
657,031
Charges for current services
121,500
121,500
121,915
415
Other revenue
34,000
34,000
32,176
(1,824)
Total revenues
514,400
501,400
1,156,781
655,381
EXPENDITURES:
Current:
Culture and recreation
411,820
411,820
453,822
(42,002)
Capital improvement/special projects
102,210
102,210
728,109
(625,899)
Total expenditures
514,030
514,030
1,181,931
(667,901)
REVENUES OVER (UNDER) EXPENDITURES
370
(12,630)
(25,150)
(12,520)
OTHER FINANCING SOURCES (USES)
Transfers in
80,000
125,000
125,000 -
Transfers out
(27,000)
(31,389)
(31,389) -
Total other financing sources (uses)
53,000
93,611
93,611 -
Net change in fund balances
$ 53,370 $
80,981
68,461 $ (12,520)
FUND BALANCES:
Beginning of year 664,331
End of year $ 732,792
107
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Parkland Dedication Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Use of money and property
Other revenue
Total revenues
EXPENDITURES:
Capital improvement/special projects
Total expenditures
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amount (Negative)
$ 20,200 $ 20,200 $ 8,119 $ (12,081)
1,100 1,100 8,543 7,443
21,300 21,300 16,662 (4,638)
$ 21,300 $ 21,300
798 (798)
798 (798)
15,864 $ (5,436)
J UU,5,454
108
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Emergency Medical Services Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Taxes and special assessments
Use of money and property
Charges for current services
Other revenue
Total revenues
EXPENDITURES:
Current:
Public safety
Capital outlay
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
Net change in fiord balances
FUND BALANCES:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amount
(Negative)
$ 2,050,000 $
2,050,000
$ 2,038,900
$ (11,100)
3,300
3,300
3,060
(240)
1,400,000
1,400,000
1,421,583
21,583
-
-
584
584
3,453,300
3,453,300
3,464,127
10,827
3,177,071
3,194,698
3,376,661
(181,963)
26,860
16,860
5,217
11,643
3,203,931
3,211,558
3,381,878
(170,320)
249,369
241,742
82,249
(159,493)
(272,655)
(407,655)
(407,655)
-
(272,655)
(407,655)
(407,655)
-
$ (23,286) $
(165,913)
(325,406)
$ (159,493)
620,807
$ 295,401
109
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Business Improvement Special Revenue Fund
For the year ended June 30, 2003
REVENUES:
Use of money and property
Intergovernmental
Other revenue
'Total revenues
EXPENDITURES:
Current:
General government
Total expenditures
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amount (Negative)
$ 193 $ 193
36,400 36,400
14,427 14,427
- 51,020 51,020
- 51,675 (51,675)
51,675 (51,675)
$ - $ - (655) $ 102,695
5,852
$ 5,197
110
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
East Francisco Boulevard Assessment District Debt Service Fund
For the year ended June 30, 2003
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amount (Negative)
OTHER FINANCING SOURCES (USES):
Transfers out $ - $ (13,702) $ (13,701) $ 1
Total other financing sources (uses) - (13,702) (13,701) 1
Net change in fund balances $ - S (13,702) (13,701) $ 1
FUND BALANCES:
Beginning of year 13,701
End of year $ -
111
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Peacock Gap Assessment District Debt Service Fund
For the year ended June 30, 2003
REVENUES:
Taxes and special assessments
Use of money and property
Total revenues
EXPENDITURES:
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Budgeted Amounts
Original Final
S 238,000 $
238,000
204,000
41,300
245,300
238,000 $
238,000
204,000
41,300
245,300
(7,300) (7,300)
Variance with
Final Budget
Actual
Positive
Amount
(Negative)
236,027
$ (1,973)
3,665
3,665
239,692
1,692
175,000
29,000
56,980
(15,680)
231,980
13,320
7,712 15,012
(2,537) (2,537) (2,537)
(2,537) (2,537) (2,537)
(9,837) $ (9,837)
5,175 $ 15,012
J 34U,V JU
112
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
1915 Act Bonds Debt Service Fund
For the year ended June 30, 2003
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amount
(Negative)
OTHER FINANCING SOURCES (USES):
Transfers out
$ - $ (67,386)
$ (67,387)
$ (1)
Total other financing sources (uses)
- (67,386)
(67,387)
(1)
Net change in fund balances
S - $ (67,386)
(67,387)
S (1)
FUND BALANCES:
Beginning of year 67,387
End of year $ -
113
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Mariposa Assessment District Debt Service Fund
For the year ended June 30, 2003
REVENUES:
Taxes and special assessments
Use of money and property
Total revenues
EXPENDITURES:
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 23,400 $ 23,400 $
23,400
13,865
9,090
22,955
445
23,400
Variance with
Final Budget
Actual Positive
Amount (Negative)
23,057 $ (343)
418 418
23,475 75
13,865
9,090
15,000
9,689
(1,135)
(599)
22,955
24,689
(1,734)
445
(1,214)
(1,659)
(150) (150) (150) -
(150) (150) (150) -
$ 295 $ 295 (1,364) $ (1,659)
37,004
35,640
114
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
1997 Financing Authority Revenue Bonds Debt Service Fund
For the year ended June 30, 2003
REVENUES:
Taxes and special assessments
Use of money and property
Total revenues
EXPENDITURES:
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 660,245 $ 660,245 $
10,400 10,400
670,645 670,645
Variance with
Final Budget
Actual
Positive
Amount
(Negative)
670,532
$ 10,287
10,928
528
681,460
10,815
470,730
515,730
515,000
197,765
197,765
197,393
668,495
713,495
712,393
2,130
(42,850)
(30,933)
730
11,917
(4,862) (4,862) (4,862) -
(4,862) (4,862) (4,862) -
$ (2,712) $ (47,712) (35,795) $ 11,917
1,041,029
$ 1,005,234
115
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Capital Improvement Capital Projects Fund
For the year ended June 30, 2003
REVENUES:
Use of money and property
intergovernmental
Other revenue
Total revenues
EXPENDITURES:
Capital improvement/special projects
Total expenditures
REVENUE OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Contribution horn Sanitation District
Transfers in
Transfers out
Potal other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 10,000
10,000
Variance with
Final Budget
Actual Positive
Amount (Negative)
10,000 $ 45,632 $ 35,632
- 13,462 13,462
162,000 - (162,000)
172,000 59,094 (112,900)
358,400
4,181,150
3,410,738
358,400
4,181,150
3,410,738
(348,400)
(4,009,150)
(3,351,644)
350,000 2,391,500
- (2,335,000)
350,000 56,500
$ 1,600 $ (3,952,650)
770,412
770,412
657,506
744,556 744,556
2,391,500 -
(2,335,000) -
801,056 744,556
(2,550,588) $ 1,402,062
4,449,735
$ 1,899,147
116
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
2003 Authority Lease Revenue Parking Bond Debt Service Fund
For the year ended June 30, 2003
EXPENDITURES:
Current:
General government
Debt service:
Interest and fiscal charges
Total expenditures
OTHER FINANCING SOURCES (USES):
Proceeds hom issuance of debt
Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Variance with
Filial Budget
Budgeted Amounts
Actual
Positive
Original Final
Amount
(Negative)
$ - $ 139,355 $
139,355
$ -
- -
141,290
141,290
- 139,355
280,645
141,290
- 7,604,080
7,605,000
920
- (6,645,528)
(6,645,528)
-
- 958,552
959,472
920
$ - $ 819,197
678,827
$ (140,370)
$ 678,827
117
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Bedroom Tax Capital Projects Fund
For the year ended June 30, 2003
REVENUES:
'Taxes and special assessments
Use of money and property
Total revenues
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 13,000 $ 15,000 $
4,000 4,000
19,000 19,000
$ 19,000 $ 19,000
Variance with
Final Budget
Actual Positive
Amount (Negative)
12,778 $ (2,222)
1,468 (2,532)
14,246 (4,754)
14,246 $ (4,754)
109,596
$ 123,842
118
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Park Capital Projects Capital Projects Fund
For the year ended June 30, 2003
Variance with
Final Budget
Budgeted Amounts Actual
Positive
Original Final Amount
(Negative)
REVENUES:
Use of money and property
$ - $ - $ 1,862
$ 1,862
Intergovernmental
- - 329,725
329,725
Other revenue
- - 16,735
16,735
Total revenues
- - 348,122
348,322
EXPENDITURES:
Capital improvement/special projects
- - 329,725
(329,725)
Total expenditures
- - 329,725
(329,725)
Net change in fund balances
$ - $ - 18,597
$ 18,597
FUND BALANCES:
Beginning of year
131,000
End of year
$ 149,597
119
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120
INTERNAL SERVICE FUNDS
121
City of San Rafael
Combining Statement of Net Assets
All Internal Service Funds
June 30, 2003
ASSETS
Current assets:
Cash and investments
Accounts Receivable
Loans Receivable
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Insurance claims payable
Total liabilities
NET ASSETS
Unrestricted
Total net assets
Equipment Building Employee Liability Worker's
Replacement Maintenance Benefits Insurance Compensation
$ 1,790,799 $
225,043 $
42,404 $
878,436 $
3,288,481
-
-
601,661
-
-
-
15,000
-
-
-
1,790,799
240,045
641,065
878,436
3,288,481
9,658
3,332
94,574
5,834
10,888
-
-
-
493,400
3,277,333
9,658
3,332
94,574
499,234
3,288,221
1,781,141 236,713 549,491 379,202 260
$ 1,781,141 $ 236,713 $ 549,491 $ 379,202 $ 260
122
Dental Radio
Insurance Replacement Total
$ 1,901 $ 2,146,190 $ 8,373,256
- 601,661
- 15,000
1,901 2,146,190 8,989,917
1,801 - 126,087
- - 3,770,733
1,801 - 3,896,820
100 2,146,190 5,093,097
$ 100 $ 2,146,190 $ 5,093,097
123
City of San Rafael
Combining Statement of Revenues, Expenses and Changes in Net Assets
All Internal Service Funds
For the year ended June 30, 2003
Equipment
Building
Employee
Liability
Worker's
Replacement
Maintenance
Benefits
Insurance
Compensation
OPERATING REVENUES:
Charges for services
S 1,168,079
$ 50,826
$ 672,991
$ 611,835
$ 1,040,876
Refunds
-
-
150,114
134,666
16,706
Other operating revenues
30,771
17,804
592,238
-
-
Total operating revenues
1,198,850
68,630
1,415,343
746,501
1,657,582
OPERATING EXPENSES:
General and administrative
-
-
1,522,424
-
-
Insurance premiums and claims
-
-
-
1,597,038
1,686,944
Maintenance and repairs
724,047
256,968
-
-
-
'Total operating expenses
724,047
256,968
1,522,424
1,597,038
1,686,944
OPERATING INCOME (LOSS)
474,803
(188,338)
(107,081)
(850,537)
(29,362)
NONOPERATING REVENUES:
Investment income
18,747
913
6,884
12,204
28,760
Total nonoperating revenues
18,747
913
6,884
12,204
28,760
INCOME• (LOSS) BEFORE
OPERATING TRANSFERS
493550
(187,425)
(100,197)
(838,333)
(602)
OTHER FINANCING SOURCES (USES):
Transfers in
-
35,000
-
775,000
-
Transfers out
-
-
(110,330)
-
-
Total other financing sources (uses)
-
35,000
(110,330)
775,000
-
Net income (loss)
493,550
(152,425)
(210,527)
(63,333)
(602)
NET ASSETS:
Beginning of year 1,287,591 389,138 760,018 442,535 862
End of year $ 1,781,141 $ 236,713 $ 549,491 $ 379,202 $ 260
124
Dental
Radio
Insurance
Replacement
Total
$ 408,324
$ 462,195
$ 5,015,126
4,855
-
306,341
-
640,813
413,179
462,195
5,962,280
- - 1,522,424
413,155 - 3,697,137
- 481,845 1,462,860
413,155 481,845 6,682,421
24 (19,650) (720,141)
29,007 96,515
29,007 96,515
24 9,357 (623,626)
810,000
(110,330)
699,670
24 9,357 76,044
76 2,136,833 5,017,053
$ 100 $ 2,146,190 $ 5,093,097
125
City of San Rafael
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2003
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers/other funds
Cash payments to suppliers for goods and services
Net cash provided (used) by operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Transfers in
Transfers out
Net cash provided (used)
by noncapital financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest revenue
Net cash provided (used) by investing activities
Net increase (decrease)
in cash and cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH PROVIDED
(USED) BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Changes in operating assets and liabilities:
Loans receivable
Accounts payable
Insurance claims payable
Total adjustments
Net cash provided (used) by operating activities
Equipment Building Employee Liability Worker's
Replacement Maintenance Benefits Insurance Compensation
$ 1,198,850 $ 53,630 $ 813,682 $ 746,501 $ 1,657,582
(766,121) (296,856) (1,437,172) (1,794,642) (1,575,388)
432,729 (243,226) (623,490) (1,048,141) 82,194
35,000 - 775,000
- (110,330) -
35,000 (110,330) 775,000
18,747
913
6,884
12,204
28,760
18,747
913
6,884
12,204
28,760
451,476
(207,313)
(726,936)
(260,937)
110,954
1,339,323 432,358 769,340 1,139,373 3,177,527
$ 1,790,799 $ 225,045 $ 42,404 $ 878,436 $ 3,288,481
$ 474,803 $ (188,338) $ (107,081) $ (850,537) $ (29,362)
- (15,000)
(601,661)
-
-
(42,074) (39,888)
85,252
(1,329)
(1,840)
- -
-
(196,275)
113,396
(42,074) (54,888)
(516,409)
(197,604)
111,556
$ 432,729 $ (243,226)
$ (623,490) $ (1,048,141) $
82,194
126
Dental Radio
Insurance Replacement Total
$ 413,179 $ 462,195 $ 5,345,619
(411,354) (481,845) (6,763,378)
1,825 (19,650) (1,417,759)
810,000
(110,330)
699,670
- 29,007 96,515
- 29,007 96,515
1,825 9,357 (621,574)
76 2,136,833 8,994,830
$ 1,901 $ 2,146,190 $ 8,373,256
$ 24 $ (19,650) $ (720,141)
- - (616,661)
1,801 - 1,922
- - (82,879)
1,801 - (697,618)
$ 1,825 $ (19,650) $ (1,417,759)
127
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128