HomeMy WebLinkAboutFY2003-04 Basic Finincial StatementsCity of
San Rafael
San Rafael, California
Basic Financial Statements
and Independent Auditor's Report
For the year ended June 30, 2004
C&I
Caporicci & Larson
Certified Public Accountants
City of San Rafael
Basic Financial Statements
For the year ended June 30, 2004
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...........................................................................................................................19
Statement of Activities and Changes in Net Assets.............................................................................20
Fund Financial Statements:
Governmental Funds:
BalanceSheet.......................................................................................................................................26
Reconciliation of the Governmental Funds Balance Sheet to the
Government -Wide Statement of Net Assets............................................................................
28
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds...................................................................................................................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.......................................................................................32
Proprietary Funds:
Statementof Net Assets.....................................................................................................................34
Statement of Revenues, Expenses and Changes in Retained Earnings ......................................
35
Statementof Cash Flows...................................................................................................................36
Notes to Basic Financial Statements..............................................................................................................37
City of San Rafael
Basic Financial Statements
For the year ended June 30, 2004
Table of Contents, Continued
Page
FINANCIAL SECTION, Continued:
Required Supplementary Information:
Budgets and Budgetary Accounting:
Budgetary Comparison Schedule - General Fund........................................................................75
Budgetary Comparison Schedule - Redevelopment Agency Fund............................................76
Budgetary Comparison Schedule - Traffic and Housing Mitigation -
SpecialRevenue Fund.................................................................................................................77
Budgetary Comparison Schedule - Household Hazmat Facility Special Revenue Fund ........ 78
Budgetary Comparison Schedule - Sewer Maintenance Special Revenue Fund......................79
Marin County Employees' Retirement System - Schedule of Funding Progress.. .......................... 80
Supplemental Information:
Non -Major Governmental Funds:
CombiningBalance Sheet........................................................................................................................ 86
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................90
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual:
Park Capital Projects Capital Projects Fund.............................................................................94
Recreation Revolving Special Revenue Fund..........................................................................
95
Baypoint Lagoons Assessment District Special Revenue Fund ............................................
96
Gas Tax Special Revenue Fund..................................................................................................97
Childcare Special Revenue Fund...............................................................................................98
Street Maintenance and Cleaning Special Revenue Fund......................................................99
Loch Lomond Assessment District Special Revenue Fund...................................................100
Library Special Revenue Fund...................................................................................................101
Public Safety Special Revenue Fund.........................................................................................102
Stormwater Special Revenue Fund...........................................................................................103
Development Services Special Revenue Fund.........................................................................104
Grants Special Revenue Fund....................................................................................................105
Parkland Dedication Special Revenue Fund............................................................................106
Emergency Medical Services Special Revenue Fund..............................................................107
Business Improvement Special Revenue Fund........................................................................108
Peacock Gap Assessment District Debt Service Fund............................................................109
Mariposa Assessment District Debt Service Fund..................................................................110
City of San Rafael
Basic Financial Statements
For the year ended June 30, 2004
Table of Contents, Continued
No
FINANCIAL SECTION Continued:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual, Continued:
1997 Financing Authority Revenue Bonds Debt Service Fund ...
2003 Authority Revenue Parking Bond Debt Service Fund.........
Capital Improvement Capital Projects Fund .................................
Bedroom Tax Capital Projects Fund ................................................
Open Space Capital Projects Fund ..................................................
Internal Service Funds:
Combining Statement of Net Assets ......................................................
Combining Statement of Activities and Changes in Net Assets........
Combining Statement of Cash Flows ....................................................
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, 2004, 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 Comptroller General 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, 2004, 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.
In accordance with Government Auditing Standards, we have also issued our report dated October 8, 2004, 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 4858 Mercury, Suite 105
Sacramento, California 95825 San Diego, California 92111
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.
1�. � z
Oakland, California
October 8, 2004
11
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2004
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, 2004. Please read it in conjunction with the accompanying transmittal
letter, the basic financial statements and the accompanying notes to those basic financial statements.
FINANCIAL HIGHTLIGHTS
Government -Wide Highlights:
Net Assets - The assets of the City exceeded its liabilities at fiscal year ending June 30, 2004 by $224.9
million. Of this amount, $11.2 million was reported as "unrestricted net assets" and may be used to meet
the government's ongoing obligations to citizens and creditors.
Expense Activities - During the fiscal year the City's revenues for governmental and business -type
activities ($65.2 million) exceeded total expenses ($66.9 million) by $1.7 million. Excluding Depreciation
(non -cash expense of $5.5 million), collected revenues were $7.2 million above expenses.
Changes in Net Assets - The City's total net assets decreased by $1.8 million in fiscal year 2004. Net assets
of governmental activities decreased by $2.5 million, while net assets of the business type activities
increased by $.7 million.
Fund Highlights:
Governmental Funds - Fund Balances- As of the close of fiscal year 2004, the City's governmental
funds reported combined ending fund balances of $43.7 million, a decrease of $5.8 million from the
prior year. Of this total amount, $33.9 million represents reserved fund balances and $8.2 million is
designated.
General Fund - The fund balance of the general fund on June 30, 2004 was $5.7 million, a decrease of
$.8 million from the prior year. $1.5 million was held in reserve, and $3.4 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 decreased by $1.8 million (2.9 percent) during the fiscal year,
which reflects payment on outstanding assessment district bonds and Redevelopment debt.
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.
3
CITY OF SAN ItAFAELf.
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2004
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 Stateniert 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 year's 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:
Governmental 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
Government Administration (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 -Type Activities —The City charges a fee to customers to cover all or most of the costs of certain services it
provides. Tlne City's Parking Services program is reported as a business -type activity.
Discretely 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 19 through 21 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.
4
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2004
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 83 through 93 of tlus report.
Governmental Funds - Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, govermnental fund financial statements focus on near -term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near -term financial capacity.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for government funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near -term financing decisions.
Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures,
and changes in fund balances provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities. These reconciliation's are presented on the page immediately following
each governmental fund financial statement.
The City has thirty governmental funds, of which six 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 six major funds are -
the General Fund, Redevelopment Agency, Traffic and Housing Mitigation, Household Hazmat Facility,
Sewer Maintenance and Park Capital Projects. Data from the other twenty-four governmental funds are
combined into a single, aggregated presentation. The basic governmental fund financial statements can be
found on pages 25 through 32 of this report. Individual fund data for each of these non -major
governmental funds is provided in the form of combining statements on pages 86 through 93 of this report.
Proprietary Funds - The City maintains two different types of proprietary funds - enterprise funds and internal
service funds. Enterprise funds are used to report the same functions presented as business -type activities in the
government -wide financial statements. The City uses an enterprise fund to account for its Parking Services
program. 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 governmental -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.
9
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2004
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government -wide and fund financial statements. The notes to the financial statements can be found on pages 37
throughh 72 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, sewer maintenance,
and parks capital projects). 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 -tune 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 73 through 80 of this report.
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 $224.9 million, which is a decrease of $1.8 million from the prior year.
The following is the condensed Statement of Net Assets for the fiscal years ended June 30, 2004 and 2003:
City of San Rafael
Statements of Net Assets
June 30, 2004 and 2003
(Amounts in Millions)
Governmental Activities Increase Business -Type Activities Increase
2004 2003 (Decrease) 2004 2003 (Decrease)
Assets:
Current assets $
54.5 $ 61.8 $ (7.3) $ 1.6 $ 1.1 $ 0.5
Capital assets, net
225.4 223.3 2.1 8.7 8.5 0.2
Total assets
279.9 285.1 (5.2) 10.3 9.6 0.7
Liabilities:
Current liabilities
7.5 10.2 (2.7) 0.1 - 0.1
Long-term liabilties
57.7 577 - - - -
Total liabilities
65.2 67.9 (2.7) 0.1 - 0.1
Net Assets:
Invested in capital assets,
net of related debt 202.2 198.1 4.1 8.8 8.5 0.3
Restricted 2.7 2.9 (0.2) - - -
Unrestriced 9.8 16.2 (6.4) 1.4 1.1 0.3
$ 214.7 $ 217.2 $ (2.5) $ 10.2 $ 9.6 $ 0.6
Total net assets
6
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2004
At June 30, 2004, the largest portion of net assets (93.8 percent) 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 increase in total net assets from 2002-2003 to 2003-2004 is largely attributable to a netting
of capital asset acquisition against depreciation expense for the year. Total depreciation for this current year was
$6.4 million, while capital asset acquisition totaled $8.5 million, leaving a net change (increase) of $2.1 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 (1.2 percent) is subject to restrictions imposed
by external parties and their use is determined by those restrictions and agreements. The remainder of net
assets, $11.2 million, may be used to meet the City's ongoing operations.
For the year ended June 30, 2004 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.
Net Assets
$250
$200 - - - - --
o $150 - ---- --- - -
$100
$50
$0 Invesment in Capital Assets, Restricted Unrestricted
net of related debt
■2004 $211 $2.70 $11.20
Total Net Assets
$224.9
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2004
Statement of Activities
The following is the condensed Statement of Activities and Changes in Net Assets for the fiscal years ended June
30, 2004 and 2003:
Revenues:
Program revenues
General revenues
Total revenues
Expenses
Change in net assets
before transfers
Transfers
Net Assets:
Beginning
Ending
Governmental Activities:
City of San Rafael
Statements of Activities and Changes in Net Assets
For the Fiscal Years Ended June 30, 2004 and 2003
(Amounts in Millions)
Governmental Activities Increase Business -Type Activities Increase
2004 2003 (Decrease) 2004 2003 (Decrease)
$ 18.2 $ 20.2 $ (2.0) $ 2.3 $ 1.8 $ 0.5
44.7 45.9 (1.2) - - -
62.9 66.1 (3.2) 2.3 1.8 0.5
65.5 80.2 (14.7) 1.5 1.3 0.2
(2.6) (14.1) 11.5 0.8 0.5 0.3
0.1 0.2 $ (0.1) (0.1) (0.2) $ 0.1
217.2 231.1.
$ 214.7 $ 217.2
9.5 9.2
$ 10.2 $ 9.5
The City's governmental activities decreased net assets by $2.5 million, which represents a 1.2% decrease from
last year. Key elements of this change were as follows:
Revenue highlights:
• Property Tax revenues increased by $.9 million or 6.5 percent in fiscal year 2004 due to higher
assessed property values and new construction.
• Sales tax increased by $.4 million or approximately 2.3 percent compared to fiscal year 2003. 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 decreased by $.5 million or approximately 4.5 percent compared to fiscal year
2003. The decreases were primarily due to decreases in motor vehicle license taxes.
• Investment income, which is a combination of interest earnings and change in fair value of
investments, also decreased by $1.1 million, or approximately 57.3 percent over the prior fiscal year.
Interest earnings were lower due to the change in the fair value of investments in the market.
0
CITY OF SAN RAFAEL
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2004
Governmental Activities - Revenues:
20%
Governmental Activities
Revenues by Source
June 30, 2004
1% 9% 1%
9AOI
1 ti% IL /o
Governmental Activities - Expenses:
Governmental Activities
Expenses by Function
June 30, 2004
11% 4% 8%
6%
25% 46%
■ Property Taxes
■ Sales Taxes
❑ Other Taxes
❑ Charges for
Services
■ Miscellaneous
❑ Capital Grants and
Contributions
■ Investment
Earnings
■ General Government
■ Public Safety
❑ Public Works and Parks
❑ Community Development
■ Culture and Recreation
❑ Debt Service
Total expenses for governmental activities were $63 million (not including interest on long-term debt of $2.5
million). Program revenues offset total expenditures as follows:
• Those who directly benefited from programs contributed $12.3 million in charges for services.
• A total of $2.3 million in capital projects was funded by outside agencies through capital grants and
contributions.
0
CITYOFSANRAFAEL
Management's Discussion and Analysis
Fiscal Year Etitled June 30, 2004
As a result, total expenditures that were funded by tax revenues; investment income and other general revenues
were $48.4 million.
Functional expenses for the years ended June 30, 2004 were as follows:
City of San Rafael
Expenses by Punction
For the fiscal year ended June 30, 2004
Function Amount Percent of Total
General Government $ 5,074,335
7.8%
Public Safety 30,453,108
46.5%
Public works and parks 16,043,092
24.5%
Community development 3,921,422
6.0%
Culture and recreation 7,444,339
11.4%
Interest on Debt 2,516,659
3.8%
Total Expenses $ 65,452,955
100.0%
Business -Type Activities:
Net assets for business -type activities were $10.2 million, an increase of $.7 million from the prior fiscal year.
Parking services is the City's only business type activity and income is derived from program revenues of $2.3
million. Program revenues include parking meter coin at $1.1 million, and parking garage hourly parking at $.2
million. Revenues also include parking and non -vehicle code fines totaling $.8 million and $.2 million for garage
parking permits. Total expenses for parking services were $1.5 million during fiscal year 2003-2004.
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 $43.7 million. Approximately, $1.7 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 $4.2 million, while total
fund balance reached $5.7 million. $3.4 million is held as part of the 10 percent 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
10
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2004
expenditures. Unreserved fund balance represents 10.0 percent of total general fund expenditures including
transfers out, while total fund balance represents 13.5 percent of that same amount.
The available fund balance of the City's general fund increased by $.1 million during the current fiscal year. This
increase resulted from:
• Net Transfers out were less than fiscal year 2003.
• Slight growth in major revenues from the prior year netted against a decline in motor vehicle 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 Capital Project Fund was established to account for capital improvement projects
related to the various redevelopment areas. At the end of fiscal year 2004, the reserved fund balance was $18.0
million, a decrease of $3.7 million from the prior year. Expenditures exceeded revenues by $.1 million. The
decrease is primarily related to $3.6 million in expenditures for principal and interest payments on the 1999 Tax
Allocation Bonds and the 2002 Tax Allocation Refunding Bonds. The entire fund balance as of June 30, 2004 was
reserved for future capital project and housing programs.
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 $.7 million as a result of operations in the Parking Services fund.
GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended budget totaled $38.1 million, including a decrease of $533,373 to the originally adopted
budget. The amendments can be briefly summarized as follows:
1. Decreases in the following budgets:
o General Government $149,113
o Public Safety 247,109
o Public Works and Parks 76,049
o Community Development/Redevelopment 47,547
o Culture and Recreation 13,555
During the year, however, revenues exceeded budgetary estimates and expenditures exceeded the final
budgetary estimate. Overall, revenues exceeded expenditures by $2.2 million. Transfers out exceeded transfers
in by $3.0 million.
11
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2004
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City's investment in capital assets for its governmental and business -type activities as of June 30, 2004,
amounts to $234.1 million, net of accumulated depreciation of $80.5 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 irmnovable 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 $8.3 million, net of accumulated depreciation and
retirements.
Major capital asset additions during the current fiscal included a major land purchase, work in process on a
parking garage, pump station, and dispatch center, purchase of seventeen vehicles, and roadway improvements.
Capital Projects
The design of the Pickleweed Community Center expansion and renovation project has been
finalized.
Y The City's General Plan 2020, which was adopted in November 2004, was nearing completion in
fiscal year 2003-2004.
v Although construction of the 3iil and C Street Parking Structure was halted for a time due to the
default of the original general contractor, construction has once again resumed. Completion of
the facility is expected in Spring 2005.
v Remodeling of City Hall's Third Floor for Community Development and relocating the Business
License functions to the third floor helped provide better customer service to consumers.
Additional information on the City's capital assets can be found in Note 5A on pages 53 through 56 of this
report.
Debt Administration
As of June 30, 2004, the City had outstanding debt issues as listed below. Not included in the following table is
the Community Facilities District No.1 Special Tax Bond, which is 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 2003 and 2004 were as follows:
12
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2004
Governmental
Business -Type
Activities
Activities
Total
2004 2003
2004 2003
2004
2003
Revenue Bonds
$ 9.9 $
10.4
$ - $ -
$ 9.9 $
10.4
Bonds
0.5
0.7
- -
0.5
0.7
Tax Allocation Bonds
43.2
44.9
- -
43.2
44.9
Redevelopment note
0.2
0.2
- -
0.2
0.2
Capitalized Leases
0.7
-
- -
0.7
-
Compensated Absences
4.1
4.2
- -
4.1
4.2
Total Outstanding Debt
$ 58.6 $
60.4
$ - $ -
$ 58.6 $
60.4
During fiscal year 2004, the City leased two new fire trucks in the amount of $668,134. The annual lease
payments are $72,295 for five years starting in September 2004.
ECONOMIC CLIMATE AND NEXT YEAR'S BUDGET
The short-term outlook is not getting any brighter for the next (2004-2005) fiscal year. Continued losses at the
hands of the State, flat tax revenues, a lackluster economic growth picture and rising benefit costs all
contribute to a negative financial picture. 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 Governor's proposed fiscal year budget includes no new or increased taxes. Major reductions are
proposed in various programs, and local government is no exception. For the next two years, the Governor
proposed taking $1.3 billion from cities, counties, special districts and redevelopment agencies. Passage of
Proposition IA on November 2nd solidified the Governor's proposal. Some major elements of Proposition 1A
are:
There is a two-year statewide hit ($1.3 billion per annum for fiscal year 2004-2005 and fiscal year 2005-
2006.
ra Local tax revenues are generally protected from realignments or Legislative actions beginning in fiscal
year 2006-2007.
San Rafael's share of this hit is $993,000 for each of the next two years. This was a large contributor to
our $2.2 million General Fund gap last spring.
N' The formula for taking these local revenues is based upon looking at our tax bases compared to
statewide totals. Formulas are weighted 1/3 from sales tax, 1/3 from property tax and the remaining
1/3 from vehicle license fees. Actual revenue losses come from VLF revenues. Added pain is caused
by the VLF rate being permanently reduced from 2.0 percent to 0.65 percent and relying on State
backfilling, via property taxes, to make up the difference.
13
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2004
For the past two years, the City Council and community have been asked to adjust the City's General Fund
budget in order to bring expenditures in line with available resources. The City Council took actions on
numerous occasions to take a total of $6.9 million worth of actions to keep our expenditures in line with
expected resources. Fiscal year 2004-2005 represents the third consecutive year of budget challenges.
Key action items to bring the budget in balance are listed below:
Expenses:
➢ Using $500,000 of reserves over each of the next two years to partially compensate for the State local
revenue hit.
➢ The Fleet Advisory Board provided $250,000 of relief from the Vehicle Replacement Fund.
➢ Implementation of Mandatory Time Off for all directors, unrepresented managers, SEIU, Confidential
Association, and Fire Chief Officer's Union employees. Salary reductions of 5 percent began July 2004
and provided the equivalent of 13 days off without pay. This will save the General Fund $475,000 in
salaries over this year.
➢ The Fire Department generated $300,000 cut via a combination of overtime reductions, reducing
capital expenditures, and taking one-time resources from special Fire programs.
➢ The Library cost savings included not filling a vacant Librarian position and the elimination of a mid -
management position due to a retirement.
➢ Reorganizing the Information Services Division of Management Services also included the reduction
of one management position due to a retirement.
➢ The Police Department eliminated three vacant positions, added a part-time cadet and increased
overtime slightly to save $300,000.
➢ The Mayor and all of the City Council members elected to have their pay reduced by 10 percent for the
coming year. The City Manager forfeited a salary increase and merit bonus which together provides a
$15,000 savings to the General Fund.
Revenues:
➢ Recovering 100 percent of the Long Range Planning program through fees.
➢ Imposition of encroachment permits on companies who have debris boxes in City right of way
generates $20,000.
Carving our way out of our problems will result in dire service reductions to the major operating Departments
(Police, Fire, Public Works, Library, and Commuruty Services). Frankly, if just service and employee reductions
alone were the basis for solving our structural deficit problems, then the actions needed involve dismantling the
organization that our elected officials, staff and community have spent considerable time and energy proudly
advancing and developing these last few years. A strict service reduction package would likely impact 20 or
more full time positions, plus many of our valued part-time employees.
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.
14
BASIC FINANCIAL STATEMENTS
15
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16
GOVERNMENT -WIDE
FINANCIAL STATEMENTS
17
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is
City of San Rafael
Statement of Net Assets
June 30, 2004
ASSETS
Current assets:
Cash and investments
Restricted cash and investments:
Held by fiscal agents
Receivables:
Accounts
Taxes
Grants
Interest
Loans
Prepaid expenses
Total current assets
Noncurrent assets:
COP issuance costs, net
Capital assets:
Nondepreciable assets
Depreciable assets, net
Total capital assets
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Connection fees payable
Interest payable
Developer bonds payable
Arbit"age payable
Deferred revenue
Insurance claims payable - due within one year
Compensated absences - due within one year
Long-term debt - due within one year
Total current liabilities
Long-term liabilities:
Insurance claims payable - due in more than one year
Compensated absences - due in more than one year
Long-term debt - due in more than one year
Total long-term liabilities
Total liabilities
NET ASSETS
Investments in capital assets, net of related debt
Restricted
Unrestricted
Total net assets
Discrete
Component
Primary Government
Unit
San Rafael
Governmental Business -Type
Sanitation
Activities Activities Total
District
$ 33,859,457 $ 1,525,792 $ 35,385,249
$ 7,332,035
11,054,473 - 11,054,473
3,026,469
42,726 3,069,195 -
4,481,119
- 11,483,119 -
1,052,585
- 1,052,585 -
281,130
- 281,130 22,611
758,458
- 758,458 -
12,602
- 12,602 31,972
54,526,293
1,568,518 56,094,811 7,386,618
58,884
93,396,204
8,141,820
101,538,024
222,640
131,948,542
577,229
132,525,771
21,903,823
225,344,746
8,719,049
234,063,795
22,126,463
225,344,746
8,719,049
234,063,795
22,185,347
279,871,039
10,287,567
290,158,606
29,571,965
1,349,567
88,207
1,437,774
51,787
-
-
3,937
330,678
-
33Q678
62,977
98,224
-
98,224
-
251,250
-
251,250
-
143,957
2,143
146,100
-
2,040,000
-
2,040,000
-
691,271
-
691,271
-
2,557,731
-
2,557,731
350,000
7,462,678
901350
7,553,028
468,701
2,298,024 -
3,456,356 -
51,954,226 -
57,708,606 -
65,171,284 90,350
2,298,024 -
3,456,356 -
51,954,226 3,161,892
57,708,606 3,161,892
65,201,634 3,630,593
202,215,793 8,749,750 210,965,543 18,673,455
2,708,397 - 2,708,397 418,421
9,775,565 1,447,467 11,223,032 6,849,496
$ 214,699,755 $ 10,197,217 $ 224,896,972 $ 25,941,372
See accompanying Notes to Basic Financial Statements
19
City of San Rafael
Statement of Activities and Changes in Net Assets
For the year ended June 30, 2004
Functions/Programs Expenses
Primary government:
Governmental activities:
General government
$ 5,074,335
Public safety
30,453,108
Public works and parks
16,041,092
Community development/redevelopment
3,921,422
Cultme and recreation
7,444,339
Interest on long-term debt (unallocated)
2,516,659
Total governmental activities
65,452,955
Business -type activity
Program Revenues
Charges
for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Total
Program
Revenues
$ 1,487595
$ 585,319
$ -
$ 2,072,914
2,203,371
2,381,265
-
4584,636
2,697,858
1,551,250
220,000
4,469,108
1,982,211
110,032
100,827
2,193,070
3,960,777
624,954
252,658
4,838,389
12,331,812
5,252,820
573,485
18,158,117
Parking services 1,539,441 2,307,432 - - 2,307,432
Total primary government $ 66,992,396 $ 14,639,244 $ 5,252,820 $ 573,485 $ 20,465,549
Component unit:
San Rafael Sanitation District $ 5,297,737 $ 5,811,437 $ - $ - $ 5,811,437
General revenues:
Taxes:
Property taxes
Sale taxes
Special assessments
Motor vehicles
Other
Total taxes
Investment earnings
Miscellaneous
Aid from other governmental agencies
Transfers
Total general revenues 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
20
Net (Expense) Revenue and
Chanties in Net Assets
Discrete
Component
Government Unit
Governmental Business -type Sanitation
Activities Activities Total District
$ (3,001,421) $
- $ (3,001,421) $
(25,868,472)
- (25,868,472)
(11,573,984)
- (11,573,984)
(1,728,352)
- (1,728,352)
(2,605,950)
- (2,605,950)
(2,516,659)
- (2,516,659)
—
(47,294,838)
- (47,294,838)
-
767,991 767,991
—
(47,294,838)
767,991 (46,526,847)
411 Won
14,895,188
-
14,895,188
591,078
17,166,966
-
17,166,966
-
3,329,680
-
3,329,680
-
2,495,598
-
2,495,598
-
5,476,044
-
5,476,044
-
43,363,476
-
43,363,476
591,078
809,242
29,534
838,776
75,739
498,200
-
498,200
-
-
-
-
154,919
142,970
(142,970)
-
-
44,813,888
(113,436)
44,700,452
821,736
(2,480,950)
654,555
(1,826,395)
1,335,436
217,180,705
9,542,662
226,723,367
24,605,936
$ 214,699,755
$ 10,197,217
$ 224,896,972
$ 25,941,372
21
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22
FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
23
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24
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 Hazinat Facility Fund - Established to account for State mandated hazardous materials
information, collection, and reporting. Expenditures include inspection of businesses for compliance with
regulations. This fund also serves as the depository for a countywide Household Hazardous Waste Program.
Sewer Maintenance Fund - Established under the terms of the JPA to provide all necessary maintenance to
the Sanitation District's gravity collection sewer system.
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.
25
City of San Rafael
Balance Sheet
Governmental Funds
June 30, 2004
Major Funds
Special Revenue Funds Capital Projects
Traffic and Household Park
Redevelopment Housing Hazmat Sewer Capital
General Agency Mitigation Facility Maintenance Projects
ASSETS
Cash and investments
$ 1,201,985
$ 5,632,621
$ 9,933,317 $ 395,685 $ - $ -
Cash with fiscal agents
67,386
10,207,709
- - - -
Receivables:
Accounts
208,731
1,069,826
2,857 450,466 274,084 -
Taxes
3,519,511
961,608
- - - -
Grants
18,028
-
- - - 406,242
Interest
218,385
62,745
- - - -
Loans
349,892
315,709
82,857 - - 25,000
Prepaid expense
-
-
- - - -
Due from other funds
634,507
-
- - - -
Total assets
$ 6,220,425
$ 18,250,218
$ 10,019,031 $ 846,151 $ 274,084 $ 431,242
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
$ 486,237
$ 23,501
$ - $
372,580 $
179 $
228
Developer bonds payable
37,000
25,000
34,724
-
-
-
Arbitrage payable
-
251,250
-
-
-
-
Due to other funds
-
-
-
-
254,396
229,702
Deferred revenue
-
-
-
-
-
25,000
Total liabilities
523,237
299,753
34,724
372,580
254,575
254,930
Fund Balances:
Reserved
1,451,036
17,950,465
9,901,450
111,100
-
176,312
Unreserved:
Designated
3,417,216
-
-
-
19,509
-
Undesignated, reported in:
Major funds
828,936
-
82,857
362,471
-
-
Non -major funds reported in:
Special revenue funds
-
-
-
-
-
-
'Total fund balances
5,697,188
17,950,465
9,984,307
473,571
19,509
176,312
Total liabilities and fund balances
$ 6,220,425
$ 18,250,218
$ 10,019,031 $
846,151 $
274,084 $
411,242
See accompanying Notes to Basic Financial Statements
26
Non -Major
Total
Governmental
Governmental
Funds
Funds
$ 8,238,431 $ 25,404,039
779,378 11,054,473
326,177
2,332,141
-
4,481,119
628,315
1,052,585
-
281,130
21,726
795,184
12,602
12,602
25,000
659,507
$ 10,031,629
$ 46,072,780
$ 423,365 $
1,306,092
1,500
98,224
-
251,250
484,098
165,683
190,683
590,548
2,330,347
4,331,870 33,922,233
4,713,657 8,150,382
1,274,264
395,554 395554
9,441,081 43,742,433
$ 10,031,629 $ 46,072,780
27
City of San Rafael
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Assets
June 30, 2004
Total Fund Balances - Total Governmental Funds
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
Depreciable, net
Total capital assets
hnterest 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.
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 funds were
included in governmental activities in the Government -Wide Statement of Net Assets.
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
Long-term debt
Total long-term liabilities
Net Assets of Governmental Activities
$ 43,742,433
93,396,204
131,948,542
225,344,746
(330,678)
4,602,838
(4,147,627)
(54,511,957)
(58,659,584)
$ 214,699,755
See accompanying Notes to Basic Financial Statements.
28
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29
City of San Rafael
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the year ended June 30, 2004
REVENUES:
Taxes and special assessments
Licenses and permits
Fines and forfeitures
Use of money and property
Intergovernmental
Charges for 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:
Capitalized lease obligation
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Major Funds
Special Revenue Funds Capital Projects
Traffic and Household Park
Redevelopment Housing Hazutat Sewer Capital Projects
General Agency Mitigation Facility Maintenance Fund
$ 32,999,575 $
4,536,865 $
- $
- $ - $ -
920,353
-
-
7,950 - -
778,552
-
-
- - -
(150,056)
663,703
239,630
9,908 - -
4,600,223
-
-
83,040 - 249,300
1,353,588
233,153
350,519
1,2555,249 1,144,830 -
257,517
-
20,011
3,800 - 13,827
40,759,752
5,433,721
610,180
1,359,947 1,144,830 263,127
4,953,422 - -
23,761,680 - -
5,372,286 - -
2,096,103 1,779,439 -
1,556,924 - -
794,068 3,792,474 158,014
1,322,468 - -
- 1,037,657 -
236,412
10,775 - - - - -
- 1,675,000 - - - -
- 1,892,306 - - - -
38,545,258 9,139,219 158,014 1,322,468 1,037,657 236,412
2,214,494 (3,705,498)
OTHER FINANCING SOURCES (USES):
Transfers in 665,990
Transfers out (3,680,818)
Total other financing sources (uses) (3,014,828)
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES
FUND BALANCES:
Beginning of year, as restated
End of year
(800,334) (3,705,498)
452,166 37,479 107,173 26,715
- - (88,400) -
(88,400)
452,166 37,479 18,773 26,715
6,497,522 21,655,963 9,532,141 436,092 736 149,597
$ 5,697,188 $ 17,950,465 $ 9,984,307 $ 473,571 $ 19,509 $ 176,312
See accompanying Notes to Basic Financial Statements
30
Non -Major- Total
Governmental Governmental
Funds Funds
$ 3,339,386 $ 40,875,826
- 928,303
13,423
791,975
261,014
1,024,199
3,116,439
8,049,002
6,086,395
10,423,754
440,821
735,976
13,257,478
62,829,035
61,030 5,014,452
3,779,049 28,863,197
2,848,048 9,257,991
- 3,875542
5,588,340 7,145,264
31,703 31,703
4,844,135 9,825,103
- 10,775
685,000 2,360,000
564,051 2,456,357
18,401,356 68,840,384
(5,143,878) (6,011,349)
4,556,878
5,222,868
(1,210,680)
(4,979,898)
3,346,198
242,970
(1,797,680) (5,768,379)
11,238,761 49,510,812
$ 9,441,081 $ 43,742,433
31
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, 2004
Net Change in Fund Balances - Total Governmental Funds $ (5,768,379)
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. 8,504,578
Depreciation expense on capital assets is reported in the Government -Wide Statement of
Activities and Changes in Net Assets, but they do not require the rise of current financial
resources. Therefore, depreciation expense is not reported as expenditures in governmental
funds. (6,434,739)
Expenses for compensated absences accrued but not paid are reported in the Govermnent-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. 'Phis amount represents current compensated absences expense incurred. 65,510
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 all expenditure in governmental funds,
but the repayment reduces long-term liabilities in the Government -Wide Statement of Net Assets.
This amount represents new capitalized lease obligations (668,134)
This amount represents long-term debt repayments 2,360,000
This amount represents capitalized lease obligation payments 10,775
-Total long-term debt 1,702,641
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. 270,376
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. (820,937)
Change in Net Assets of Governmental Activities $ (2,480,950)
See accompanying Notes to Basic Financial Statements
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, 2004
Discrete
Component
Major Fund
Unit
Governmental
San Rafael
Activities
Parking
Sanitation
Internal
Services
District
Scrvice Funds
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 noncm rent assets
'Total assets
LIABILITIES
Current liabilities:
Accounts payable
Connection fees payable
Interest payable
Due to other funds
Insurance claims payable
Deferred revenue
Long-term debt - due within one year
Total cement 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
$ 1,525,792 $ 7,332,035 $ 8,455,418
42,726 - 694,328
- 22,611 -
- 10,000
31,972 -
1,568,518 7,386,618 9,139,746
-
58,884
-
8,141,820
222,640
-
577,229
21,903,823
-
8,719,049
22,185,347
-
10,287,567
29,571,965
9,159,746
88,207
51,787
43,475
-
3,937
-
62,977
-
-
175,409
-
-
4,338,024
2,143
-
-
-
350,000
-
90,350
468,701
4,556,908
3,161,892 -
3,161,892 -
90,350 3,630,593 4,556,908
8,749,750 18,673,455 -
- 418,421 -
1,447,467 6,849,496 4,602,838
$ 10,197,217 $ 25,941,372 $ 4,602,838
See accompanying Notes to Basic Financial Statements
34
City of San Rafael
Statement of Revenues, Expenses and Changes in Retained Earnings
Proprietary Funds
For the year ended June 30, 2004
OPERATING REVENUES
Charges for current services
Refunds
Connection 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
Proceeds from sale of assets
Transfers in
Transfers out
Total other financing sources (uses)
Net income (loss)
RETAINED EARNINGS:
Beginning of year
End of year
Discrete
Component
Major Fund
Unit
Governmental
San Rafael
Activities
Parking
Sanitation
Internal
Services
District
Service Funds
$ 1,423,320 $ 5,776,012 $ 4,874,819
- - 428,647
- 35,425 -
884,112 - 1,436,521
2,307,432 5,811,437 6,739,987
1,003,344
-
-
-
-
3,446,525
224,752
-
1,550,866
-
1,846,464
-
-
2,185,680
-
40,701
909,938
-
270,644
169,832
2,370,020
1,539,441
5,111,914
7,367,411
767,991
699,523
(627,424)
591,078
- 154,919 -
29,534 75,739 198,805
- (180,091) -
29,534 641,645 198,805
797,525 1,341,168 (428,619)
(5,732) -
38,360
100,000
(142,970) - (200,000)
(142,970) (5,732) (61,640)
654,555 1,335,436 (490,259)
9,542,662 24,605,936 5,093,097
$ 10,197,217 $ 25,941,372 $ 4,602,838
See accompanying Notes to Basic Financial Statements
35
City of San Rafael
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2004
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
Cash received from sale of assets
Capital contribution to primary government
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 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:
Depreciation
Changes in operating assets and liabilities:
Accounts receivable
Loans receivable
Prepaid items
Due to/ other funds
Accounts payable
Connection fees
Insurance claims payable
Deferred revenue
Total adjustments
Net cash provided (used) by operating activities
See accompanying Notes to Basic Financial Statements
Discrete
Component
Major Fund
Unit
Governmental
San Rafael
Activities
Parking
Sanitation
Internal
Services
District
Service Funds
$ 1,406,107 $ 5,811,437 $ 6,827,729
(1,172,293) (1,006,714) (6,882,732)
613,468 (3,291,669) -
847,282 1,513,054 (55,003)
591,078
154,919
100,000
(142,970) - (200,000)
(142,970) 745,997 (100,000)
(295,333) (311,039) -
38,360
- (5,732) -
- 7,806 -
- (3,45,000) -
- (157,011) -
(295,333) (810,976) 38,360
29,534 74,728 200,706
29,534 74,728 200,706
438,513 1,522,803 84,063
1,087,279 5,809,232 8,371,335
$ 1,525,792 $ 7,332,035 $ 8,455,418
$ 767,991 $ 699,523 $ (627,424)
40,701 909,938
(17,213)
(87,667)
- (6,257) -
175,409
59,797 (80,087) (82,612)
- (10,063)
567,291
(3,994) - -
79,291 813,531 572,421
$ 847,282 $ 1,513,054 $ (55,003)
36
NOTES TO BASIC FINANCIAL STATEMENTS
37
City of San Rafael
Notes to Basic Financial Statements
For the year ended June 30, 2004
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 unit,
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, 2004
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
A. Reporting Entity, Continued
San Rafael joint P02oers Financing Authority - 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's 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. A Discretely Presented Component Unit
Activities column is presented after the 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, 2004
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
The Government -Wide 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, 2004
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.
Proprietany 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 "economic 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. Interest Payable
In the government -wide financial statements, interest payable of long-term debt is recognized as the liability is
incurred for governmental fund types and proprietary fund types.
In the fund financial statements, governmental fund types recognize the interest expenditures on long-term
debt when payment is due. In the propriety fund types recognize the interest payable when 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, 2004
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 Interfurid Reeeivables/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, 2004
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
G. Property Tax Levy Collection and Maximum 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 Safehl 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 Occupancy Taxes - 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 3001 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, 2004
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 is 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 estimated 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 using the Basic Approach for infrastructure
reporting.
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 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.
44
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
L Capital Assets, Continued
Interest accrued during construction of capital assets, 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
estimated 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 estimated 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 -Term 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.
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, 2004, 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.
45
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES, Continued
N. Use of Estimates
The preparation of financial statements in conformity with GAAP 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 - This 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.
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 $514,827 at June 30, 2004. Bank balances at June 30, 2004
were $2,449,082 which were fully insured and collateralized with securities held by the pledging financial
institutions in the City's name as discussed below.
The California Govenment 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.
46
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
2. CASH AND INVESTMENTS, Continued
B. Investments
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.
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
Category 1 - Insured or collateralized with securities held by the entity or by its agent in the entity's
name.
Category 2 - Collateralized with securities held by the pledging financial institutions trust department or
agent in the entity's name.
Category 3 - Deposits which are uninsured or uncollateralized.
47
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
2. CASH AND INVESTMENTS, Continued
C. Risk Category, Continued
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.
Categonl 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.
The following is a summary of pooled cash and investments, including restricted cash and investments at
June 30, 2004:
Government -Wide Statement of Net Assets
Business
Governmental
Type
Activities
Activities Total
Total
Cash and Investments
$ 33,959,457
$ 1,525,792 $ 35,385,249
$
35,385,249
Restricted Cash and Investments:
Held by fiscal agents
$ 11,054,473
$ - $ 11,054,473
$
11,054,473
Total cash and investments
$
46,439,722
48
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
2. CASH AND INVESTMENTS, Continued
C. Risk Category, Continued
Pooled cash and investments were classified by risk category as follows at June 30, 2004:
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
Restricted Cash and Investments
Held by Fiscal Agents
Total
Category Category Category Fair
1 2 3 Uncategorized Value
$ 514,827 $ - $ - $ - $ 514,827
195,667 - - - 195,667
710,494 - - - 710,494
3,754,389 - - 3,754,389
6,048,370 - - 6,048,370
- - 24,871,996 24,871,996
9,802,759 - 24,871,996 34,674,755
$ 710,494 $ 9,802,759 $ - $ 24,871,996 $ 35,385,249
$ - $ - $ 11,054,473 $ - $ 11,054,473
$ 710,494 $ 9,802,759 $ 11,054,473 $ 24,871,996 $ 46,439,722
The City's investments with Local Agency Investment Fund (LAIF) at June 30, 2004, 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 i(Mich are mortgage -backed securities entitle them 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, 2004, the City had $24,871,996 invested in LAIF, which had invested 1.603% of the pool
investment funds in Structured Notes and Asset -Backed Securities. The LAIF fair value factor of 0.998384177
was used to calculate the fair value of investments in LAIF.
49
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
2. CASH AND INVESTMENTS, Continued
C. Risk Categornj, Continued
Investments stated at fair value held in the City Treasury grouped by maturity date at June 30, 2004, are shown
below:
Maturity
Fair Value
Current to one year
$ 28,287,576
One to two years
2,632,791
Two to three years
500,313
Three to four years
1,240,625
Four to five years
2,013,450
Total
$ 34,674,755
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 in trust agreements, provided the investments are within the limits imposed
by State statutes upon the entity. At June 30, 2004, cash and investments with fiscal agents totaling $11,054,473
were recorded at fair value.
E. Component Unit — Sanitation District Cash and Investments
All of the District's cash is deposited with the County of Mariri 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 District's custodial agent. The carrying amount and fair value of the pooled cash and
investments account and the open-end mutual fund at June 30, 2004, amounted to $6,852,268 and $479,692,
respectively, totaling $7,331,960. 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,
2004.
Cash and investments at June 30, 2004, consisted of the following:
Cash and investments
$
7,331,960
Petty cash
75
Total
$
7,332,035
Unrestricted cash:
Cash
$
6,852,343
Restricted cash:
Certificates of participation
479,692
Total
$
7,332,035
50
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
3. LOANS RECEIVABLE
The City had the following loans receivable at June 30, 2004:
Government
Wide
Financial
Statements
Fund Financial Statements
Governmental
Governmental
Internal
Activities
Funds
Service Funds
Loan to City Manager
$ 334,274
$ 334,274
$ -
Employees' Computer Loans
15,618
15,618
-
Marin Housing Development
90,173
90,173
-
Centertown Associates
225,536
225,536
-
One "H " Street Associates
82,857
82,857
-
Muir Terrance Homes
-
21,726
-
Marin Bocce Federation
-
25,000
-
ORCA Swim Club
10,000
-
10,000
Total
$ 758,458
$ 795,184
$ 10,000
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 a Deed of Trust. The principal and interest are payable monthly commencing September
1, 1996 through August 31, 2026. The outstanding balance at June 30, 2004 was $334,274.
Effective February 1, 2000, the City agreed to loan employees up to $2,500 for the purchase of computer
hardware and software. 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, 2004 was $15,618.
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, 2004 was $90,173.
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, 2004 was $225,536.
$100,000 loan from One "H" Street Associates at 0% interest rate with annual payments of $2,857 and with
final payment due January 18, 2034. The loan is in connection with the affordable housing project located
at One "H" Street. The outstanding balance at June 30, 2004 was $82,857.
In April 1996, Muir Terrace Homes entered into agreement with the City to defer all development fee
payments except the Traffic Mitigation fee which 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, 2004 was $21,726. h2 the Government -Wide Financial Statements, the receivable and deferred
revenues are eliminated.
51
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
3. LOANS RECEIVABLE, Continued
The City entered into 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 by June 30 of each year in the amount of $5,000.
The outstanding balance at June 30, 2004 was $25,000. 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,
2004 of $10,000 will be paid in full by 2005 in two equal annual installments.
4. INTERFUND TRANSACTIONS
A. Due FronvTo Other Funds
As of June 30, 2004, balances of due from/ other funds were as follows:
General Fund
w
Non -Major Governmental Funds
�Ow
Q
Total
B. Transfers
Due To Other Funds
Park
Internal
Sewer Capital
Service Funds
Maintenance Projects Total
$ 254,396 $ 204,702 $ 175,409 $ 634,507
- 25,000 - 25,000
$ 254,396 $ 229,702 $ 175,409. $ 659,507
Transfers for the year ended June 30, 2004, were as follows:
Major Funds:
General Fund
O Sewer Maintenance
N
w Non -Major Governmental Funds
Parking Services Enterprise Fund
I" hrternal Service Funds
Total
Transfers In
Major Funds
Non -Major
Internal
General
Governmental
Service
Fund
Funds
Funds
Total
$ -
$ 3,680,818
$ -
$ 3,680,818
88,400
-
-
88,400
274,620
836,060
100,000
1,210,680
102,970
40,000
-
142,970
200,000
-
-
200,000
$ 665,990
$ 4,556,878
$ 100,000
$ 5,322,868
52
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
5. CAPITAL ASSETS
A. Government -Wide Financial Statements
At June 30, 2004 the City's capital assets consisted of the following:
Discrete
Goverrunental
Business -Type
Component
Activities
Activities
Total
Unit
Non -depreciable assets:
Land
$ 81,455,082
$ 7,661,071
$ 89,116,153
$ 115,329
Construction in process
11,941,122
480,749
12,421,871
107,311
Total non -depreciable assets
93,396,204
8,141,820
101,538,024
222,640
Depreciable assets:
Land improvements
7,419,678
-
7,419,678
-
Buildings mid structures
24,751,954
1,163,000
25,914,954
-
Maclunery and equipment
13,406,433
218,357
13,624,790
-
Infrastructure
166,408,256
-
166,408,256
-
Subsurface lines
-
-
-
12,152,655
Sewage collection facilities
-
-
-
25,375,456
General plant and administration
-
-
-
98,535
211,986,321
1,381,357
213,367,678
37,626,646
Less accumulated depreciation
(80,037,779)
(804,128)
(80,841,907)
(15,722,823)
Total depreciable assets, net
131,948,542
577,229
132,525,771
21,903,823
Total capital assets
$ 225,344,746
$ 8,719,049
$ 234,063,795
$ 22,126,463
53
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
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, 2004:
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
Infrastructure
Total capital assets,
being depreciated
Accumulated depreciation:
Land improvements
Buildings and structures
Maclnery and equipment
Infrastructure
Total accumulated depreciation
Total capital assets,
being depreciated, net
Governmental activities
capital assets, net
Balance Reclassification/
July 1, 2003 Additions
$ 80,683,347 $ 771,735 $
7,639,803 4,301,319
88,323,150 5,073,054
Balance
Retirements June 30, 2004
- $ 81,455,082
- 11,941,122
- 93,396,204
7,327,523
92,155
-
7,419,678
24,642,085
109,869
-
24,751,954
11,821,301
1,585,132
(341,321)
13,065,112
164,763,888
1,644,368
-
166,408,256
208,554,797
3,431,524
(341,321)
211,645,000
(2,241,154)
(274,647)
-
(2,515,801)
(4,427,319)
(580,482)
-
(5,007,801)
(6,024,237)
(933,653)
341,321
(6,616,569)
(60,910,330)
(4,645,957)
-
(65,556,287)
(73,603,040)
(6,434,739)
341,321
(79,696,458)
134,951,757
(3,003,215)
-
131,948,542
$ 223,274,907
$ 2,069,839 $
-
$ 225,344,746
Depreciation expense by program for capital assets for the year ended June 30, 2004 were as follows:
General government $ 145,406
Public safety 523,666
Public works and parks 4,541,972
Community development/redevelopment 34,670
Culture and recreation 279,025
Total depreciation expense $ 5,524,739
54
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
5. CAPITAL ASSETS, Continued
A. Government -Wide Financial Statements, Continued
The following is a summary of capital assets for business -type activities:
Business -type Activities:
Capital assets, not being depreciated:
Land
Construction 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
Less accumulated depreciation
Total capital assets,
being depreciated, net
Business -type activities
capital assets, net
Balance
July 1, 2003
Reclassification/
Additions Retirements
$ 7,661,071 $ -
195,416 285,333
7,856,487 285,333
1,163,000 -
208,357 10,000
1,371,357 10,000
(674,650)
(23,260)
(88,777)
(17,441)
(763,427)
(40,701)
607,930 (30,701)
Balance
June 30,2004
$ $ 7,661,071
480,749
- 8,141,820
1,163,000
218,357
- 1,381,357
- (697,910)
- (106,218)
(804.128)
577,229
$ 8,464,417 $ 254,632 $ - $ 8,719,049
Depreciation expense for Business -type activities was $40,701 for the year ended June 30, 2004.
55
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
5. CAPITAL ASSETS, Continued
A. Government -Wide Financial Statements, Continued
A summary of the District's fixed assets at June 30, 2004, follows:
Capital assets, not being depreciated:
Land
Construction 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
Balance
Reclassification/
Balance
July 1, 2003
Additions Retirements
June 30, 2004
$ 115,329
$ - $ -
$ 115,329
1,180,647
262,897 (1,336,233)
107,311
1,295,976
262,897 (1,336,233)
222,640
12,152,655
- -
12,152,655
24,039,223
1,336,233 -
25,375,456
50,393
48,142 -
98,535
36,242,271
1,384,375 -
37,626,646
(7,063,912)
(228,821) -
(7,292,733)
(7,720,513)
(669,104) -
(8,389,617)
(36,774)
(3,699) -
(40,473)
(14,821,199)
(901,624) -
(15,722,823)
9l D] n79
AR9711 -
91 OM R"
Capital assets, net $ 22,717,048 $ 745,648 $ (1,336,233) $ 22,126,463
Depreciation expense for the District was $901,624 for the year ended June 30, 2004.
56
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
6. LONG-TERM DEBT
Long-term debt outstanding at June 30, 2004, was as follows:
Balance
Balance
Due in
Due in More
July 1, 2003 Additions
Deletions
Tune 30, 2004
One Year
Than One Year
San Rafael joint Powers Financing Authority:
1997 Authority Revenue Bonds
$ 2,820,000 $ -
$ (480,000)
$ 2,340,000
$ 490,000
$ 1,850,000
2003 Authority Lease Revenue Bonds
7,605,000
7,605,000
7,605,000
Total revenue bonds
10,425,000
(480,000)
9,945,000
490,000
9,455,000
San Rafael Redevelopment Agency Tax Allocation Bonds:
Series 1999
21,369,004 -
(575,000)
20,794,004
605,000
20,189,004
Series 2002
23,545,000
(1,100,000)
22,445,000
1,120,000
21,325,000
Total tax allocation bonds
44,914,004
(1,675,000)
43,239,004
1,725,000
41,514,004
Special Assessment Bonds (with governmental commitment)
Peacock Gap Refunding
585,000
- (190,000)
395,000
190,000
205,000
Mariposa Road Assessment
95,000
(15,000)
80,000
15,000
65,000
Total special assessment bonds
680,000
(205,000)
475,000
205,000
270,000
Note Payable
169,000
- -
169,000
-
169,000
Capitalized Lease Obligations
26,594
668,134 (10,775)
68%953
137,731
546,222
Compensated Absences
4,213,137
- (65,510)
4,147,627
691,271
3,456,356
Total long-term debt
$ 60,427,735 $
668,134 $ (2,436,285) $
58,659,584 $
3,249,002
$ 55,410,582
Discrete Component Unit - San Rafael Sanitation District:
2001 Certificates of Participation
$ 3,828,923 $
$ (317,031) $
3,511,892 $
350,000
$ 3,161,892
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 Limited 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
semiannually 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 $2,340,000 as of June 30, 2004.
57
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
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
2005
$ 490,000
2006
515,000
2007
215,000
2008
200,000
2009
210,000
2010-2012
710,000
Interest
Total
$ 139,741
$ 629,741
108,004
623,004
84,647
299,647
71,034
271,034
57,341
267,341
78,647
788,647
Total $ 2,340,000 $ 539,414 $ 2,879,414
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, 2004.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
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
165,000
331,616
496,616
2010-2014
920,000
1,567,830
2,487,830
2015-2019
1,125,000
1,364,837
2,489,837
2020-2024
1,395,000
1,089,612
2,484,612
2025-2029
1,770,000
715,500
2,485,500
2030-2033
1,765,000
226,000
1,991,000
Total
$ 7,605,000
$ 6,664,009
$ 14,269,009
58
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
6. LONG-TERM DEBT, Continued
C. 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 $20,794,004 as of June 30, 2004.
The annual debt service requirements on these bonds are as follows:
Year Encling
June 30,
Principal
Interest
Total
2005
$ 605,000
$ 894,856
$ 1,499,856
2006
630,000
865,525
1,495,525
2007
665,000
834,769
1,499,769
2008
695,000
8OZ469
1,497,469
2009
730,000
768,625
1,498,625
2010-2014
4,225,000
3,260,469
7,485,469
2015-2019
5,919,593
2,062,625
7,982,218
2020-2024
7,324,411
559,750
7,884,161
Total
$ 20,794,004
$ 10,049,088
$ 30,843,092
59
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
6. LONG-TERM DEBT, Continued
D. 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 annually 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
serniarumally 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 date, 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 $22,445,000 as of June 30,
2004.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
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
1,235,000
835,149
2,070,149
2010-2014
7,130,000
3,219,480
10,349,480
2015-2019
7,685,000
1,222,100
8,907,100
2020-2021
1,770,000
114,964
1,884,964
Total
$ 22,445,000
$ 9,041,349
$ 31,486,349
E. 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, commencing March 2, 1994, at rates ranging from 4.00% to
5.75 %. As of June 30, 2004, the outstanding balance of the bonds was $395,000.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2005 $
190,000
$ 17,490
$ 207,490
2006
205,000
6,038
211,038
Total $
395,000
$ 23,528
$ 41.8,528
RE
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
6. LONG-TERM DEBT, Continued
F. 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 semiannually 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, 2004, the outstanding balance of the bonds was $80,000.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30, Principal
Interest Total
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
$ 80,000 $
14,418 $
94,418
G. 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 $14,115,000 and
$7,445,000 of the 1992 Refunding Bonds and 1995 Tax Allocation Bonds respectively. The bonds have been
100% defeased and the liability has been removed from the Long -Term Debt. The balance of the defeased
bonds outstanding was paid in full during the fiscal year.
H. Note Payable
At June 30, 2004, 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.
61
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
6. LONG-TERM DEBT, Continued
L 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 expired 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 City leased two fire trucks in the amount of $668,134. The amrual lease payment of $72,295 for five
years starts in September 2004. The lease expires in 2009.
The future minimum lease obligations are due as follows:
Year Ending
June 30, Copiers
2005 $ 4,644 $
2006
2007
2008
2009
Minimum lease payments
Less amount
representing interest
Present value of minimum
lease payments
J. Compensated Absences
3,012
7,656
Furniture
Trucks
Total
7,093
$ 125,994
$ 137,731
1,070
129,700
133,782
-
133,514
133,514
-
137,442
137,442
-
141,484
141,484
8,163
668,134
683,953
(1,080) (265)
(1,345)
$ 6,576 $ 7,898 $ 668,134 $ 682,608
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 $3,456,356. The current portion of this liability amounted to $691,271 for all funds, with a
combined total of $4,147,627 at June 30, 2004.
62
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
6. LONG-TERM DEBT, Continued
K. Discrete 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 premium at 101% to exercise
optional prepayment between August 1, 2009 and July 31, 2010, and no premium August 1, 2010 and after.
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
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
410,000
86,745
496,745
2010-2012
1,810,000
140,810
1,950,810
Total
$ 3,710,000
$ 725,937
$ 4,435,937
Total debt outstanding as of June 30, 2004, net of discounts and deferred amount on refunding were as
follows:
Principal outstanding at June 30, 2003
$ 3,710,000
Less:
Discount
(24,672)
Deferred amount on refunding
(173,436)
Net bonds outstanding at June 30, 2004
$ 3,511,892
The City complied with all significant bond covenants relating to reserve and sinking fund requirements,
proof of insurance and budgeted revenue and maintenance costs.
63
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
7. NON -CITY OBLIGATIONS
The following bond issues are not reported in the City's financial statements because they 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, 2004
San Rafael Redevelopment Agency
162-175 Belvedere
Multifamily Housing Revenue Bonds
Apartments
$ 3,590,529
$ 1,453,645
California Statewide Communities
Development Authority Revenue Bonds
St. Marks School
5,605,000
5,605,000
San Rafael Redevelopment Agency
Variable Rate Denumd Multifamily
55 Fairfax
Housing Revenue Bonds
Apartments
3,000,000
3,000,000
San Rafael Redevelopment Agency
San Rafael Commons
Multifamily I Iousing Revenue Bonds-2001
Apartments
6,100,000
6,100,000
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 has been appropriated 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.
64
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
8. FUND BALANCES RESERVATIONS AND DESIGNATIONS, Continued
A detailed schedule of the fund balances at June 30, 2004, is shown as follows:
Major Funds
Capital
Special Revenue
Projects
Traffic and
I-lousehold
Park
Non -Major
Redevelopment
Housing
Hazmat
Sewer
Capital
Govenunental
General
Agency
Mitigation
Facility
Maintenance
Projects
Funds
Total
Reserved:
Encumbrances
$ 10,689
$ -
$ -
$ -
$ -
$ -
$ -
S 10,689
Petty cash
3,487
-
-
-
-
-
-
3,487
General plan
22,085
-
-
-
-
-
-
22,085
Department savings
224,906
-
-
-
-
-
-
224,906
Employee M.O.U.
376,535
-
-
-
-
-
-
376,535
Loans rceeivable
334,274
325,156
-
-
-
-
25,000
684,430
Debt service
-
31,872
-
-
-
-
1,734,630
1,766,502
Improvement projects
43,606
16,243,437
-
-
-
176,312
1,760,361
18,223,716
Infomuation systems projects
199,699
-
-
-
-
-
-
199,699
Equipment teplacement
-
-
-
21,100
-
-
-
21,100
Buildings and structures
-
-
-
40,000
-
-
-
40,000
Facility closures
-
-
-
50,000
-
-
-
50,000
Assessment distnicts/open space
67,286
-
-
-
-
-
361,879
429,165
Mello Roos assessment
-
-
-
-
-
-
450,000
450,000
Educational Revenue Augmentation Fund
168,469
-
-
-
-
-
-
168,469
'traffic Mitigation
-
-
9,901,450
-
-
-
-
9,901,450
Housing
-
1,350,000
-
-
-
-
-
1,350,000
Total reserved
1,451,036
17,950,465
9,901,450
111,100
-
176,312
4,331,870
33,922,233
Unreserved, Designated:
Emergency and cash flow
3,417,216
-
-
-
-
-
155,129
3,572,345
Library/endowments
-
-
-
-
-
-
472,578
472,578
Public safety
-
-
-
-
-
-
320,993
120,993
Grant projects
-
-
-
-
-
-
770,545
770,545
Park projects
-
-
-
-
-
-
675,664
675,664
Gas tax projects
-
-
-
-
-
-
1,342,905
1,342,905
Street projects
-
-
-
-
19,509
-
1,175,843
1,195,352
Total designated
3,417,216
-
-
-
19,509
-
4,713,657
8,150,382
Unreserved, Undesignated
828,936
-
82,857
362,471
-
395,554
1,669,818
Total
$ 5,697,188
$17,950,465
$ 9,984,307
$ 473,571
$ 19,509
$ 176,312
$ 9,441,081
$43,742,433
65
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
9. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The following funds had departmental expenditures in excess of budget. Sufficient revenues were available
to fund these expenditures:
Major Funds:
General Fund
Sewer Maintenance
Park Capital Projects
Non -Major Funds:
Recreation Revolving
Street Maintenance and Cleaning
Library
Stormwater
Peacock Gap Assessment District
Capital Improvement
Total
Appropriations Expenditures Excess
$ 38,113,205 $ 38,545,258 $ 432,053
1,001,478 1,037,657 36,179
28,000 236,412 208,412
2,606,169
2,816,233
210,064
1,754,686
2,709,494
954,808
203,410
263,582
60,172
1,742,366
2,060,994
318,628
223,380
239,353
15,973
146,000
1,174,794
1,028,794
$ 45,818,694
$ 49,083,777
$ 3,265,083
General Fund - General plan costs, which are covered by building fees, were budgeted in prior years but
spent in the current year.
Sewer Maintenance - Higher medical insurance costs and higher than expected retirement costs contributed
to the excess expenditures.
Park Capital Projects - The Gerstle Park renovations budgeted in previous years was spent in the current
year.
Recreation Revolving - The Terra Linda Community Center and Aquatics' programs exceeded expectations
resulting in higher costs (salary with related fringe benefits, pool chemicals, and contractual services) to
operate the pool and facility for the year.
Street Maintenance and Cleaning - Capital projects, like Traffic Signal Management System, 2nd Street
Rehabilitation, and Sidewalk Replacement, were funded and budgeted in prior years but the actual
expenditures occurred in the current year.
Library - Audio and video materials, which is funded through audio and video rentals, were purchased in
the current year.
Stormwater - Pump station improvements budgeted in the previous year was spent in the current year.
Peacock Gap Assessment District - The City's portion of the Archdiocese's assessment attributed to the
improvement of San Pedro Road not budgeted in the current year.
Capital Improvement - Costs for special projects and capital projects that were budgeted in prior years was
spent in the current year.
66
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
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 who work at least 75% of a full time position 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 Marin County
Employees' Retirement Association, 3501 Civic Center Drive, Room 408, Civic Center, San Rafael, CA 94903.
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
13.16% of payroll to the Fund for public safety personnel and 9.77% for other covered employees for the
year ended June 30, 2004. The City, due to a collective bargaining agreement, also has a legal obligation to
contribute full share of the employees' contribution up to a maximum of 3% of payroll for safety employees
and non -safety employees. Employees have an obligation to contribute the remaining portion.
C. Annual Pension Cost
The City's annual pension cost to the Fund for the year ended June 30, 2004, of $3,879,356 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, 2004. 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 2001 actuarial valuation include an assumed rate of return on investment assets of
8.25%, and annual payroll increases reflecting 4.25% for inflation and approximately range of 0.54% to
6.62% for merit and longevity. Actual rate of return on investment was a loss of 9.7% 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.
67
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
10. EMPLOYEES' RETIREMENT PLAN, Continued
D. Three -Year Historical Trend Information
Fiscal Year
Annual Pension
Percentage of
Ending
Cost (APC)
APC Contributed
6/30/2002
$ 2,880,000
100%
6/30/2003
3,349,490
100%
6/30/2004
3,879,356
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 $69,506 and employees contributed $69,506. The total covered payroll
of employees participating in the plan for the year ended June 30, 2004, was $1,853,467. The total payroll for
the year was $33,788,898.
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 Marin 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 $128,430 to the plan on behalf of the eligible employees.
68
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
12. POST -EMPLOYMENT HEALTH CARE 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, 2004, 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, 2004, those costs totaled $1,171,024,
of which $684,905 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 $52,279,369. The City accounts for and finances its
uninsured risks of loss in the internal service funds. The City had established a claims liability of $4,338,024
at June 30, 2004, based on the requirement of GASB Statement No. 10, Accounting and Financial Reporting for
Risk Financing and Related Insurance Issues, 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, 2002,
2003, and 2004, are as follows:
Balance at
Current Year
General
Beginning of
Claims and Changes
Claim
Liability
Fiscal Year
In Estimates
Payments
2001-02
$ 184,703
$ 1,372,096 $
(1,051,827)
2002-03
504,972
1,115,872
(1,127,444)
2003-04
493,400
835,521
(641,776)
Workers'
Balance at
Current Year
Compensation
Beginning of
Claims and Changes
Claim
Liability
Fiscal Year
In Estimates
Payments
2001-02
$ 2,569,323
$ 2,207,423 $
(1,612,809)
2002-03
3,163,937
1,470,860
(1,357,464)
2003-04
3,277,333
1,917,432
(1,543,886)
Balance at
End of
Fiscal Year
$ 504,972
493,400
687,145
Balance at
End of
Fiscal Year
$ 3,163,937
3,277,333
3,650,879
ME
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
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 22
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 $294,018 in premiums to the Risk Management
Authority during the fiscal year ended June 30, 2004. Condensed financial information for the California
Joint Powers Risk Management Authority for the fiscal year ended June 30, 2004, was as follows:
Assets $ 65,85%842
Liabilities $ 36,069,353
Net assets 29,790,489
Total liabilities and net assets $ 65,859,842
Revenues $ 11,534,277
Expenses (7,446,139)
Refunds to members (8,007,273)
Change in net assets $ (3,919,135)
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 Joust 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 annual 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 Counhl Integrated On -Line Library 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 Marin. 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 County Free Library, Civic Center, Administration Building, San Rafael, California 94903.
70
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
14. JOINT VENTURES, JOINTLY GOVERNED ORGANIZATIONS AND RELATED PARTY
TRANSACTIONS, Continued
A. Joint Ventures, Continued
The Marin Street Light Acquisition Toint Powers Authority (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 share of contributions 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 27 Commercial Blvd. Suite C, Novato, California
94949.
The Marin Emergency Radio Authority (MERA) - was formed on February 28, 1998 by the County of Marin
and 25 local agencies within the County to plan, finance, implement, manage, own, and operate a County-
wide public safety and emergency radio system. The Governing Board consists of one representative from
each member. 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. Financial statements of the MERA can
be obtained at 3501 Civic Centre Drive, San Rafael, CA 94903.
B. Jointly Governed Organizations
The Countywide Planning Agency - 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 Telecommunications Agency - 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 Marin Telecommunications Agency consists of one member from each of the eleven participating
agencies.
The Marin County Hazardous and Solid Waste Toint Powers Authority - was established by the County, local
cities, and waste franchising districts to finance, prepare, and implement source reduction and recycling
elements on a county -wide integrated waste management plan as required by State Assembly Bill 939.
71
City of San Rafael
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
14. JOINT VENTURES, JOINTLY GOVERNED ORGANIZATIONS AND RELATED PARTY
TRANSACTIONS, Continued
B. Jointly Governed Organizations, Continued
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. COMMITMENT AND CONTINGENCIES
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.
The City worked with the Department of Justice (DOJ) to determine the City's compliance with the
Americans with Disabilities Act of 1990 (ADA). The DOJ ratified an ADA Settlement Agreement in August
2004 providing a number of specific remedies including timelines, law specific solutions and reporting over
the next ten years. For example, several facility deficiencies require resolution within the next year, the
City's Web site needs an ADA overhaul, and a significant amount of items relate to curb ramps. The City
determined a range of $2,000,000 to $3,000,000 to expend on the remedies determined by the Agreement.
An accurate amount was not estimated. Therefore, no liability has been recorded.
On October 1, 2002, the Agency entered into a second amendment to the Section 33401 Tax Sharing
Agreement with the San Rafael High School District. This agreement provides for additional payments in
the amount of $179,000 each fiscal year beginning with fiscal year 2002-03 through fiscal year 2021-22.
16. SUBSEQUENT EVENT
2004 Tax and Revenue Anticipation Notes
The California Statewide Communities Development Authority (Authority) is a public entity organized
pursuant to an Amended and Restated Joint Exercise of Power Agreement among a number of California
counties, cities, and special districts. The Authority is authorized to issue bonds to finance working capital
for local agencies within the State of California. The Authority has a California Communities Cash Flow
Financing Program that provides cash flow financing for California counties, cities and other local agencies
meeting certain criteria. The City is participating in this program under the 2004 Tax and Revenue
Anticipation Bonds. The Authority, on behalf of participating agencies, has issued $803,750,000 in a series
of bonds. The City's participation level is $4,245,000. The proceeds of the bond sale have been placed in a
13-month guaranteed investment contract with an investment rate of 2.44 percent. The maturity date for
the note is July 25, 2005.
72
REQUIRED SUPPLEMENTARY INFORMATION
73
City of San Rafael
Required Supplementary Information
For the year ended June 30, 2004
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.
74
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2004
1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetanf Comparison Schedule, General Ftoid
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 balance
FUND BALANCE:
Beginning of year
End of year
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 32,284,940
$ 32,049,140
$ 32,999,575
$ 950,435
650,305
738,425
920,353
181,928
799,670
649,670
778,552
128,882
311,940
321,240
(150,056)
(471,296)
5,391,740
4,537,834
4,600,223
62,389
1,086,160
1,294,499
1,353,588
59,089
181,200
181,200
257,517
76,317
40,705,955
39,772,008
40,759,752
987,744
5,201,151
5,007,038
4,953,422
53,616
24,188,155
23,941,046
23,761,680
179,366
5,506,606
5,430,557
5,372,286
58,271
2,123,060
2,075,513
2,096,103
(20,590)
11551,916
1,538,361
1,556,924
(18,563)
-
45,000
-
45,000
75,690
75,690
794,068
(718,378)
-
-
10,775
(10,775)
38,646,578
38,1121,205
38,545,258
(432,053)
2,059,377
1,658,803
2,214,494
555,691
613,820
850,720
665,990
(184,730)
(3,642,500)
(3,270,282)
(3,680,818)
(410,536)
(3,028,680)
(2,419,562)
(3,014,828)
(595,266)
$ (969,303) $ (760,759)
(800,334) $ (39,575)
6,497,522
$ 5,697,188
75
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2004
1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Bitdgetaril Comparison Scliedafle, Redevelopmelat Agelicl Fun
and
REVENUES:
Taxes and special assessments
Use of money and property
Charges for services
Other
Total revenues
EXPENDITURES:
Current:
Community development/redevelopment
Capital improvement/special projects
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 4,467,310
$ 4,467,310
$ 4,528,913
$ 61,603
275,000
335,988
663,703
327,715
8,550
8,550
7,950
(600)
2,100
2,100
233,154
231,054
4,752,960
4,813,948
5,433,720
619,772
1,265,829
1,961,474
1,779,439
182,035
537,840
4,035,828
3,792,474
243,354
1,675,000
1,675,000
1,675,000
-
1,892,310
1,892,310
1,892,305
5
5,370,979
9,564,612
9,139,218
425,394
$ (618,019) $ (4,750,664)
(3,705,498) $ 1,045,166
21,655,963
$ 17,950,465
76
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2004
1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetary Comparison ScYtedule, Traffic and Housing Mitigation Special Revenue Fund
REVENUES:
Use of money and property
Intergovernmental
Charges for services
Other
Total revenues
EXPENDITURES:
Capital improvement/special projects
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 225,000 $ 220,000 $ 239,630 $ 19,630
21,500 21,500 - (21,500)
- - 350,539 350,539
15,935 20,011 4,076
246,500 257,435 610,180 352,745
765,000 807,185 158,014 649,171
765,000 807,185 158,014 649,171
$ (518,500) $ (549,750)
452,166 $ (296,426)
77
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2004
1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetary Colnparison Scliedule, Household Hazniat FacilihlSpecial Revenue Fund
REVENUES:
Licenses and permits
Use of money and property
Intergovernmental
Charges for services
Other
Total revenues
EXPENDPPURES:
Current:
Public safety
Capital outlay
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 5,000
$ 5,000
$ 7,950 $
2,950
10,500
-
9,908
9,908
83,200
83,200
83,040
(160)
1,110,799
1,230,799
1,255,249
24,450
12,170
12,170
3,800
(8,370)
1,341,669
1,331,169
1,359,947
28,778
1,316,209
1,314,994 1,322,468
(7,474)
11,970
11,970 -
11,970
1,328,179
1,326,964 1,322,468
4,496
$ 13,490 $ 4,205
37,479 $ 24,282
436,092
$ 473,571
78
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2004
1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
Budgetaru Comparison Schedule, Seeder Mailitenance Special Revenue Fmid
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amount
(Negative)
REVENUES:
Use of money and property
$ 5,000
$ 5,000
$ -
$ (5,000)
Charges for services
1,093,120
1,093,120
1,144,830
51,710
Total revenues
1,098,120
1,098,120
1,144,830
46,710
EXPENDITURES:
Current:
Public works and parks
1,007,936
1,001,478
1,037,657
(36,179)
Total expenditures
1,007,936
1,001,478
1,037,657
(36,179)
REVENUES OVER (UNDER) EXPENDITURES
90,184
96,642
107,173
10,531
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
(88,400) (88,400) (88,400)
(88,400) (88,400) (88,400)
$ 1,784 $ 8,242
18,773 $ 10,531
736
$ 19,509
79
City of San Rafael
Required Supplementary Information, Continued
For the year ended June 30, 2004
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
6/30/2001
$ 186,085,000
$ 172,939,000
$ 13,146,000
6/30/2002
190,563,000
187,118,000
3,445,000
6/30/2003
185,632,000
219,845,000
(34,213,000)
* Latest information available.
Excess Assets
Over AAL
Funded
Covered
Asa % of
Ratio
Payroll
Payroll
108%
$ 25,650,000
51.3%
102%
27,223,000
12.7%
84%
27,453,000
(124.6)%
I
SUPPLEMENTARY INFORMATION
81
This page intentionally left blank.
82
NON -MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS:
Recreation Revolving Fund - Established to administer the Recreation Department's program and facility
rental charge and accounts for the Recreation Memorial Fund.
Baypoint Lagoons Assessment District Fund - The Baypoint Lagoons Lighting and Landscape District was
formed to protect and enhance wildlife habitat and water quality in Baypoint (Spirmaker) 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.
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 Find - 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.
83
This page intentionally left blank.
84
NON -MAJOR
GOVERNMENTAL FUNDS
DEBT SERVICE FUNDS:
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.
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 distinct.
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 PROTECTS FUNDS:
Capital Improvement Fund - Established for the costs associated with major capital improvement projects
not tied to specific funds elsewhere. Improvements could include medians, parkways, sidewalks, and other
public assets.
Bedroom Tax Fund - Established to collect funds from multiple -unit housing used to pay for maintaining
and developing parks within local neighborhoods.
Assessment Districts Fund - Established to account for ongoing construction and improvement needs within
the following assessment districts: Peacock Gap, Kerner Boulevard, Sun Valley/Lucas Valley Open Space,
East San Rafael Drainage Assessment Districts 1
85
City of San Rafael
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2004
Special Revenue
Baypoint
Lagoon
Shcet
Recreation
Assessment
Gas
Maintenance -
Revolving
District
Tax
Childcare
and Cleaning
ASSETS
Cash and investments
$ 81,692
$ 11,927
$
1,243,108
$
53,762
$ 455,729
Cash with fiscal agent
-
-
-
-
-
Receivables:
Accounts
202,472
-
65,332
-
36,510
Grants
-
-
105,461
190,000
Loans
-
-
-
-
-
Prepaid expenses
12,602
-
-
-
-
Due from other fiords
-
-
-
-
-
Total assets
$ 296,766
$ 11,927
$
1,413,901
$
53,762
$ 682,239
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
$ 55,060
$ -
$
70,996
$
17,758
$ 132,179
Developer bonds payable
-
-
-
-
-
Due to other funds
-
-
-
-
-
Deferred revenue
143,957
-
-
-
-
Total liabilities
199,017
-
70,996
17,758
132,179
Fund Balances (Note 9):
Reserved
-
-
-
-
-
Unreserved:
Designated
-
-
1,342,905
-
550,060
Undesignated, reported in:
Special revenue funds
97,749
11,927
-
36,004
-
Total fund balances
97,749
11,927
1,342,905
36,004
530,060
Total liabilities and fund balances
$ 296,766
$ 11,927
$
1,413,901
$
53,762
$ 682,239
86
Loch Lomond Emergency
Assessment Public Development Parkland Medical
District Library Safely Stormwater Services Grants Dedication Services
$ 627,255 $ 373,542 $ 110,727 $ 706,748 $ 517,026 $ 564,838 $ 675,664 $ 162,190
311 - 15,203 1,859 - - - 1,328
- 114,396 - - - 218,458 - -
- - - - - 21,726 -
- - - - - - 25,000 -
$ 627,566 $ 487,938 $ 125,930 $ 708,607 $ 517,026 $ 783,296 $ 722,390 $ 163,518
$ - $
15,360 $
4,937 $
82,824 $
9,299 $
12,751 $
- $
8,389
-
-
-
-
11500
-
-
-
-
-
-
-
-
-
21,726
-
-
15,360
4,917
82,824
10,799
12,751
21,726
8,389
450,000
-
-
-
436,605
-
25,000
-
-
472,578
120,993
625,783
-
770,545
675,664
155,129
177,566
-
-
-
69,622
-
-
-
627,566
472,578
120,993
625,783
506,227
770,545
700o664
155,129
$ 627,566 $
487,938 $
125,930 $
708,607 $
517,026 $
783,296 $
722,390 $
163,518
(Continued)
87
City of San Rafael
Combining Balance Sheet
Non -Major Governmental Funds, Continued
June 30, 2004
ASSETS
Cash and investments
Cash with fiscal agent
Receivables:
Accounts
Grants
Loans
Prepaid expenses
Due from other funds
Total assets
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
Developer bonds payable
Due to other funds
Deferred revenue
Total liabilities
Fund Balances (Note 9h
Reserved
Unreserved:
Designated
Undesignated, reported in:
Special revenue funds
Total fund balances
Total liabilities and fund balances
Special
Revenue
Debt Service
Peacock
1997
2003
Gap
Mariposa Financing
Authority
Business
Assessment
Assessment Authority
Lease Revenue
Improvement
District
District Revenue Bonds
Parking Bonds
$ 2,686 $ 325,868 $ 39,909 $ 578,974 $ 7,339
- - - 437,290 342,088
- 1,115 134 1,913 -
$ 2,686 $ 326,983 $ 40,043 $ 1,018,177 $ 349,427
326,983 40,043 1,018,177 349,427
2,686 - - - -
2,686 326,983 40,043 1,018,177 349,427
$ 2,686 $ 326,983 $ 40,043 $ 1,018,177 $ 349,427
88
Capital Projects
Total
Non -Major
Capital Bedroom Assessment Open Governmental
Improvement Tax Districts Space Funds
$ 1,200,746 $ 116,822 $ 223,741 $ 138,138 $ 8,238,431
- - - - 779,378
- - - - 326,177
- - - 628,315
- - 21,726
- - 12,602
- - - - 25,000
$ 1,200,746 $ 136,822 $ 223,741 $ 138,138 $ 10,031,629
13,812 $ - $ - $ - $ 423,365
- 1,500
- - - - 165,683
13,812 - - - 590,548
1,186,934 136,822 223,741 138,138 4,331,870
- - - - 4,713,657
- - - - 395,554
1,186,934 136,822 223,741 138,138 9,441,081
$ 1,200,746 $ 136,822 $ 223,741 $ 138,138 $ 10,031,629
(Concluded)
89
City of San Rafael
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For the year ended June 30, 2004
Special Revenue
Baypoint
Lagoons
Street
Recreation
Assessment
Gas
Maintenance
Revolving
District
Tax
Childcare
and Cleaning
REVENUES:
Taxes and special assessments
$ -
$ 25,499 $
-
$ -
$ -
Licenses and permits
-
-
-
-
-
Fines and forfeitures
-
-
-
-
-
Use of money and property
844
375
27,879
254
8,666
Intergovernmental
-
-
1,107,005
263,875
206,361
Charges for current services
1,520,713
-
122,780
2,280,739
-
Other revenue
5,657
-
104,795
1,175
52,175
Total revenues
1,527,214
25,874
1,362,459
2,546,043
267,202
EXPENDITURES:
Current:
General government
-
-
-
-
-
Public safety
-
-
-
-
-
Public works and parks
-
28,041
182,562
-
1,553,717
Culture and recreation
2,760,375
-
-
2,465,670
-
Capital outlay
5,121
-
-
14,366
-
Capital improvement/special projects
50,737
-
368,037
-
1,155,777
Debt service:
Principal retirement
-
-
-
-
-
Interest and fiscal charges
-
-
-
-
-
Total expenditures
2,816,233
28,041
550,599
2,480,036
2,709,494
REVENUES OVER (UNDER) EXPENDI'TUIiES
(1,289,019)
(2,167)
811,860
66,007
(2,442,292)
OTHER FINANCING SOURCES (USES):
Transfers in
1,317,170
-
50,000
-
1,882,050
Transfers out
-
-
(875,000)
(45,400)
-
Total other financing sources (uses)
1,317,170
-
(825,000)
(45,400)
1,882,050
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
28,151
(2,167)
(13,140)
20,607
(560,242)
FUND BALANCES:
Beginning of year
69,598
14,094
1,356,045
15,397
1,110,302
End of year
$ 97,749
$ 11,927 $
1,342,905
$ 36,004
$ 550,060
90
Loch Lomond
Emergency
Assessment
Public
Development
Parkland
Medical
District
Library
Safety
Stormwater
Service
Grants
Dedication
Services
$ 62,343
$ -
$ -
$ -
$ - $
- $
-
$ 2,332,935
-
-
9,819
3,604
-
-
-
-
14,548
80,678
2,343
18,234
16,004
12,072
15,971
-
-
152,744
76,700
-
3,330
1,273,664
-
-
-
11,373
3,952
825,286
25,569
-
78,286
1,217,697
-
17,490
200
-
112,500
1,700
3,123
-
76,891
262,285
93,014
847,124
157,403
1,287,436
97,380
3,550,632
- -
-
-
- 9,406
- -
- -
117,031
-
- 100,000
- 3,562,018
54 -
-
1,081,056
- -
- -
- 195,941
-
-
- 166,354
- -
- -
-
-
- -
- 12,216
- 67,641
-
979,938
87,781 957,863
150 -
54 263,582
117,031
2,060,994
87,781 1,233,623
150 3,574,234
76,837 (1,297)
(24,017)
(1,213,870)
69,622 53,813
97,230 (23,602)
- - 40,000 864,600 - 100,000 - -
- (50,000) - (116,060) - (116,670)
40,000 814,600 - (16,060) - (116,670)
76,837 (1,297) 15,983 (399,270) 69,622 37,753 97,230 (140,272)
550,729 473,875 105,010 1,025,053 436,605 732,792 603,434 295,401
$ 627,566 $ 472,578 $ 120,993 $ 625,783 $ 506,227 $ 770,545 $ 700,664 $ 155,129
(Continued)
91
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, 2004
Special Revenue
Debt Service
Peacock
1997
2003
Gap
Mariposa
Financing
Authority
Business
Assessment
Assessment
Authority
Lease Revenue
hnprovement
District
District
Revenue Bonds
Parking Bonds
REVENUES:
Taxes and special assessments
$ -
$ 223,050
$ 26,896
$ 658,955
$ -
Licenses and permits
-
-
-
-
-
Fines and forfeitures
-
-
-
-
-
Use of money and property
146
51730
724
11,675
4,404
Intergovernmental
32,760
-
-
-
-
Charges for current services
-
-
-
-
-
Other revenue
16,207
-
-
-
-
Total revenues
49,113
228,780
27,620
670,630
4,404
EXPENDITURES:
Current:
General government
51,624
-
-
-
-
Public safety
-
-
-
-
-
Public works and parks
-
-
-
-
-
Culture and recreation
-
-
-
-
-
Capital outlay
-
-
-
-
-
Capital improvement/special projects
-
-
-
-
-
Debt service:
Principal retirement
-
190,000
15,000
480,000
-
Interest and fiscal charges
-
49,353
8,067
172,827
333,804
Total expenditures
51,624
239,353
23,067
652,827
333,804
REVENUES OVER (UNDER) EXPENDITURES
(2,311)
(10,573)
4,553
17,803
(329,400)
OTHER FINANCING SOURCES (USES):
Transfers in
-
-
-
-
-
Transfers out
-
(2,540)
(150)
(4,860)
-
Total other financing sources (uses)
-
(2,540)
(150)
(4,860)
-
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
(2,511)
(13,113)
4,403
12,943
(329,400)
FUND BALANCES:
Beginning of year
5,197
340,096
35,640
1,005,234
678,827
End of year
$ 2,686
$ 326,983
$ 40,043
$ 1,018,177
$ 349,427
92
Capital
Projects
Total
Non -Major
Capital
Bedroom
Assessment
Open
Governmental
Improvement
Tax
District
Space
Funds
$ -
$ 9,708
$ -
$ -
$ 3,339,386
-
-
-
-
13,423
33,791
3,272
-
3,404
261,014
-
-
-
-
3,116,439
-
-
-
-
6,086,395
125,732
-
67
-
440,821
159,523
12,980
67
3,404
13,257,478
-
-
-
-
61,030
-
-
-
-
3,779,049
-
-
-
2,618
2,848,048
-
-
-
-
5,588,340
-
-
-
-
31,703
1,174,794
-
-
1,417
4,844,135
-
-
-
-
685,000
-
-
-
-
564,051
1,174,794
-
-
4,035
18,401,356
(1,015,271)
12,980
67
(631)
(5,143,878)
303,058
-
-
-
4,556,878
-
-
-
-
(1,210,680)
303,058
-
-
-
3,346,198
(712,213) 12,980 67 (631) (1,797,680)
1,899,147 123,842 223,674 138,769 11,238,761
$ 1,186,934 $ 136,822 $ 223,741 $ 138,138 $ 9,441,081
(Concluded)
93
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Park Capital Projects Capital Projects Fund
For the year ended June 30, 2004
REVENUES:
Use of money and property
Intergovernmental
Other revenues
Total revenues
EXPENDITURES:
Capital improvement/special projects
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 2,000 $ 2,000 $
2,000 2,000
28,000 28,000
28,000 28,000
$ (26,000) $ (26,000)
Variance with
Final Budget
Actual
Positive
Amount
(Negative)
-
$ (2,000)
249,300
249,300
13,827
13,827
263,127
261,127
236,412
(208,412)
236,412
(208,412)
26,715 $
52,715
149,597
$ 176,312
94
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Recreation Revolving Special Revenue Fund
For the year ended June 30, 2004
REVENUES:
Use of money and property
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
Total other financing sources (uses)
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 5,610 $ 2,610 $
1,507,415 1,549,489
36,630 17,280
1,549,655 1,569,379
2,587,936 2,579,209
26,960 26,960
2,614,896 2,606,169
Variance with
Final Budget
Actual Positive
Amount (Negative)
844 $
(1,766)
1,520,713
(28,776)
5,657
(11,623)
1,527,214
(42,165)
2,760,375
(181,166)
5,121
21,839
50,737
(50,737)
2,816,233
(210,064)
(1,065,241)
(1,036,790)
(1,289,019)
(252,229)
1,065,850
1,033,692
1,317,170
283,478
1,065,850
1,033,692
1,317,170
283,478
$ 609 $
(3,098)
28,151 $
31,249
69,598
$ 97,749
95
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, 2004
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)
$ 27,890 $
27,890
$ 25,499
$ (2,391)
500
500
375
(125)
28,390
28,390
25,874
(2,516)
29,590
29,590
28,041
1,549
29,590
29,590
28,041
1,549
S (1,200) $ (1,200)
(2,167) $ (967)
14,094
11,927
96
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Gas Tax Special Revenue Fund
For the year ended June 30, 2004
REVENUES:
Use of money and property
Intergovernmental
Charges for current services
Other revenue
Total revenues
EXPENDITURES:
Current:
Public works and parks
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 balance
FUND BALANCE:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amount (Negative)
$ 30,000 $ 30,000 $ 27,879 $ (2,121)
1,098,500 1,098,500 1,107,005 8,505
- 244,000 122,780 (121,220)
100,000 100,000 104,795 4,795
1,228,500 1,472,500 1,362,459 (110,041)
181,860 181,940
1,270,000 1,552,260
1,451,860 1,734,200
(223,360) (261,700)
182,562
(622)
368,037
1,184,223
550,599
1,183,601
811,860
1,073,560
450,000 50,000 50,000 -
poff'000) (300,000) (875,000) (575,000)
150,000 (250,000) (825,000) (575,000)
$ (223,360) $ (261,700)
(13,140) $ 248,560
1,356,045
$ 1,342,905
97
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Childcare Special Revenue Fund
For the year ended June 30, 2004
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
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing Sources (uses)
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amount
(Negative)
$ - $
-
$ 254
$ 254
283,150
268,731
263,875
(4,856)
2,470,570
2,367,700
2,280,739
(86,961)
-
-
1,175
1,175
2,753,720
2,636,431
2,546,043
(90,388)
2,418,809
2,543,317
2,465,670
77,647
-
-
14,366
(14,366)
2,418,809
2,543,317
2,480,036
63,281
334,911
93,114
66,007
(27,107)
(113,500)
(45,400)
(45,400)
-
(113,500)
(45,400)
(45,400)
-
$ 221,411 $
47,714
20,607
$ (27,107)
15,397
98
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Street Maintenance and Cleaning Special Revenue Fund
For the year ended June 30, 2004
REVENUES:
Use of money and property
Intergovernmental
Charges for current services
Other revenue
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
Total other financing sources (uses)
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 16,000 $
100,000
2,330
118,330
1,635,807
100,000
1,735,807
11,000 $
516,000
2,330
529,330
1,621,418
133,268
1,754,686
Variance with
Final Budget
Actual Positive
Amount (Negative)
8,666 $ (2,334)
206,361 (309,639)
52,175 49,845
267,202 (262,128)
1,553,717
67,701
1,155,777
(1,022,509)
2,709,494
(954,808)
(1,617,477)
1,412,050
(1,225,356)
1,457,050
(2,442,292)
1,882,050
(1,216,936)
425,000
1,412,050
1,457,050
1,882,050
425,000
$ (205,427) $ 231,694
(560,242) $ (791,936)
1,110,302
$ 550,060
99
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Loch Lomond Assessment District Special Revenue Fund
For the year ended June 30, 2004
REVENUES:
Taxes and special assessments
Use of money and property
Total revenues
EXPENDITURES:
Current:
Public works and parks
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amount
(Negative)
$ 62,630 $
62,630
$ 62,343
$ (287)
10,000
10,000
14,548
4,548
72,630
72,630
76,891
4,261
6,040
6,040
54
5,986
6,040
6,040
54
5,986
66,590 $ 66,590
76,837 $ 10,247
550,729
$ 627,566
100
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Library Special Revenue Fund
For the year ended June 30, 2004
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 balance
FUND BALANCE:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amount
(Negative)
$ 47,490 $
46,490
$ 80,678
$ 34,188
203,010
203,010
152,744
(50,266)
14,200
14,200
11,373
(2,827)
12,170
12,170
17,490
5,320
276,870
275,870
262,285
(13,585)
203,410
203,410
195,941
7,469
-
-
67,641
(67,641)
203,410
203,410
263,582
(60,172)
73,460 $
72,460
(1,297)
$ (73,757)
473,875
472,578
101
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Public Safety Special Revenue Fund
For the year ended June 30, 2004
REVENUES:
Fines and forfeitures
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 balance
FUND BALANCE:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amount
(Negative)
$ 200 $
12,000
$ 9,819
$ (2,181)
900
900
2,343
1,443
60,500
63,500
76,700
13,200
18,710
3,710
3,952
242
1,500
1,500
200
(1,300)
81,810
81,610
93,014
11,404
103,860
130,175
117,031.
103,860
130,175
117,031
(22,050)
(48,565)
(24,017)
40,000 40,000
40,000 40,000
$ 17,950 $ (8,565)
13,144
24,548
40,000
40,000 -
15,983 $ 24,548
105,010
102
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Stormwater Special Revenue Fund
For the year ended June 30, 2004
REVENUES:
Fuses 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
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
Actual
Amount
Variance with
Final Budget
Positive
(Negative)
$ 2,030 $
2,030 $
3,604 $
1,574
10,000
10,000
18,234
8,234
846,690
846,690
825,286
(21,404)
858,720
858,720
847,124
(11,596)
1,115,342
1,120,827
1,081,036
39,771
500,000
621,539
979,938
(358,399)
1,615,342
1,742,366
2,060,994
(318,628)
(756,622)
(883,646)
(1,213,870)
(330,224)
864,600
864,600
864,600
-
(50,000)
(50,000)
(50,000)
-
814,600
814,600
814,600
-
$ 57,978 $
(69,046)
(399,270) $
(330,224)
1,025,053
$ 625,783
103
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Development Services Special Revenue Fund
For the year ended June 30, 2004
REVENUES:
Use of money and property
Intergovernmental
Charges for services
Other
Total revenues
EXPENDITURES:
Capital improvement/special projects
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year, as restated
End of year
Budgeted Amounts
Original Final
$ 10,000 $
10,000
10,000 $
246,947
256,947
Actual
Amounts
16,004 $
3,330
25,569
112,500
157,403
Variance with
Final Budget
Positive
(Negative)
6,004
3,330
25,569
(134,447)
(99,544)
- 246,947 87,781 159,166
246,947 87,781 159,166
$ 10,000 $ 10,000 69,622 $ 59,622
436,605
$ 506,227
104
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Grants Special Revenue Fund
For the year ended June 30, 2004
REVENUES:
Use of money and property
Intergovernmental
Other revenue
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Culture and recreation
Capital nnprovement/special projects
Total expenditures
REVENUES OVER (UNDER) EXPENDTTURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amount
(Negative)
$ 2,400 $
2,400
$ 12,072
$ 9,672
1,012,632
1,343,769
1,273,664
(70,105)
-
-
1,700
1,700
1,015,032
1,346,169
1,287,436
(58,733)
8,982
8,982
9,406
(424)
112,000
232,000
100,000
132,000
244,510
244,510
166,354
78,156
731,877
902,383
957,863
(55,480)
1,097,369
1,387,875
1,233,623
154,252
(82,337) (41,706)
100,000
100,000
53,813 95,519
100,000 100,000 -
(86,060) (116,060) (30,000)
13,940 (16,060) (30,000)
$ 17,663 $ (27,766)
37,753 $ 65,519
S //V,S4b
105
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Parkland Dedication Special Revenue Fund
For the year ended June 30, 2004
REVENUES:
Use of money and property
Charges for current services
Other revenue
Total revenues
EXPENDITURES:
Capital improvement/special projects
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 12,000 $ 12,000 $
465,197 465,197
477,197 477,197
480,197 480,197
480,197 480,197
$ (3,000) $ (3,000)
Variance with
Final Budget
Actual
Positive
Amount
(Negative)
15,971
$ 3,971
78,286
(386,911)
3,123
3,123
97,380
(379,817)
150 480,047
150 480,047
97,230 $ 100,230
603,434
700,664
106
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Emergency Medical Services Special Revenue Fund
For the year ended June 30, 2004
REVENUES:
Taxes and special assessments
Use of money and property
Intergovernmental
Charges for current services
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 fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amount (Negative)
$ 2,162,730 $ 2,349,400 $ 2,332,935 $ (16,465)
25,000 10,000 - (10,000)
17,000 - -
"1,4"10,000 1,410,000 1,217,697 (192,303)
3,614,730 3,769,400 3,550,632 (218,768)
3,530,530
27,240
3,581,035
27,240
3,562,018
12,216
19,017
15,024
3,557,770
3,608,275
3,574,234
34,041
56,960 161,125 (23,602) (184,727)
(301,400)
(301,400)
(116,670)
184,730
(301,400)
(301,400)
(116,670)
184,730
$ (244,440) $
(140,275)
(140,272) $
3
295,401
$ 155,129
107
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Business Improvement Special Revenue Fund
For the year ended June 30, 2004
REVENUES:
Use of money and property
Intergovernmental
Other revenue
Total revenues
EXPENDITURES:
Current:
General government
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original final Amount (Negative)
$ 500 $ 500 $ 146 $ (354)
34,270 34,270 32,760 (1,510)
20,280 20,280 16,207 (4,073)
55,050 55,050 49,113 (5,937)
50,030 57,030 51,624 5,406
50,030 57,030 51,624 5,406
$ 5,020 $ (1,980)
(2,511) $ (11,343)
5,197
$ 2,686
108
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Peacock Gap Assessment District Debt Service Fund
For the year ended June 30, 2004
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 balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 228,150 $
10,000
238,150
228,150 $
10,000
238,150
Variance with
Final Budget
Actual Positive
Amount (Negative)
223,050 $
5,730
(5,100)
(4,270)
228,780
(9,370)
180,000
180,000
190,000
(10,000)
43,380
43,380
49,353
(5,973)
223,380
223,380
239,353
(15,973)
14,770
14,770
(10,573)
(25,343)
(2,540)
(2,540)
(2,540)
-
(2,540)
(2,540)
(2,540)
-
$ 12,230 $
12,230
(13,113) $
(25,343)
340,096
$ 326,983
109
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Mariposa Assessment District Debt Service Fund
For the year ended June 30, 2004
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amount
(Negative)
REVENUES:
Taxes and special assessments
$ 22,410 $
22,410
$ 26,896
$ 4,486
Use of money and property
1,000
1,000
724
(276)
Total revenues
23,410
23,410
27,620
4,210
EXPENDITURES:
Debt service:
Principal retirement
15,000
15,000
15,000
-
Interest and fiscal charges
8,460
8,460
8,067
393
Total expenditures
23,460
23,460
23,067
393
REVENUES OVER (UNDER) EXPENDITURES
(50)
(50)
4,553
4,603
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
(150) (150) (150)
(150) (150) (150)
$ (200) $ (200)
4,403 $ 4,603
s 4u,u43
110
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
1997 Financing Authority Revenue Bonds Debt Service Fund
For the year ended June 30, 2004
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 balance
FUND BALANCE:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amount
(Negative)
$ 669,490 $
669,490
$ 658,955
$ (10,535)
7,900
7,900
11,675
3,775
677,390
677,390
670,630
(6,760)
477,320
461,320
480,000
(18,680)
200,540
203,530
172,827
30,703
677,860
664,850
652,827
12,023
(470) 12,540 17,803 5,263
(4,860) (4,860) (4,860)
(4,860) (4,860) (4,860)
$ (5,330) $ 7,680
12,943 $ 5,263
1,005,234
$ 1,018,177
111
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
2003 Authority Lease Revenue Parking Bond Debt Service Fund
For the year ended June 30, 2004
REVENUES:
Use of money and property
Total expenditures
EXPENDITURES:
Debt service:
Interest and fiscal charges
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ $ 2,000 $
2,000
332,710 332,710
332,710 332,710
$ (332,710) $ (330,710)
Variance with
Final Budget
Actual Positive
Amount (Negative)
4,404 $ 2,404
4,404 2,404
333,804
1,094
333,804
1,094
(329,400) $
1,310
678,827
$ 349,427
112
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Capital Improvement Capital Projects Fund
For the year ended June 30, 2004
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amount
(Negative)
REVENUES:
Use of money and property
$ 10,000 $
10,000
$ 33,791
$ 23,791
Other revenue
-
-
125,732
125,732
Total revenues
10,000
10,000
159,523
149,523
EXPENDITURES:
Capital improvement/special projects
-
146,000
1,174,794
(1,028,794)
Total expenditures
-
146,000
1,174,794
(1,028,794)
REVENUE OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Total other financing sources (uses)
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
10,000 (136,000) (1,015,271) (879,271)
- 146,000 303,058 157,058
146,000 303,058 157,058
$ 10,000 $ 10,000
(712,213) $ (722,213)
1,899,147
$ 1,186,934
113
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Bedroom Tax Capital Projects Fund
For the year ended June 30, 2004
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amount (Negative)
REVENUES:
Taxes and special assessments $ - $ - $ 9,708 $ 9,708
Use of money and property 2,000 2,000 3,272 1,272
Total revenues 2,000 2,000 12,980 10,980
Net change in fund balance $ 2,000 $ 2,000 12,980 $ 10,980
FUND BALANCE:
Beginning of year 123,842
End of year $ 136,822
114
City of San Rafael
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Open Space Capital Projects Fund
For the year ended June 30, 2004
REVENUES:
Use of money and property
Total revenues
EXPENDITURES:
Current:
Public works and parks
Capital improvement/special projects
Total expenditures
Net change in fund balance
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 20,000 $ 5,000
20,000 5,000
11,680 11,680
11,680 11,680
$ 8,320 $ (6,680)
$
Variance with
Final Budget
Actual Positive
Amount (Negative)
3,404 $ (1,596)
3,404 (1,596)
2,618
9,062
1,417
(1,417)
4,035
7,643
(631) $ 6,049
138,769
$ 138,138
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INTERNAL SERVICE FUNDS
117
City of San Rafael
Combining Statement of Net Assets
All Internal Service Funds
June 30, 2004
Equipment
Building
Employee
Liability
Worker's
Peplacement
Maintenance
Benefits
Insurance
Compensation
ASSETS
Current assets:
Cash and investments
$ 1,421,723
$ 348,759
$ -
$ 1,130,008
$ 3,682,502
Accounts receivable
-
-
694,328
-
-
Loars receivable
-
10,000
-
-
-
Total assets
1,421,723
358,759
694,328
1,130,008
3,682,502
LIABILITIES
Cm rent liabilities:
Accounts payable
9,895
17,983
400
5,833
9,364
Due to other funds
-
-
175,409
-
-
Insurance claims payable
-
-
-
687,145
3,650,879
Total liabilities
9,895
17,983
175,809
692,978
3,660,243
NET ASSETS
Unrestricted
1,411,828
340,776
518,519
437,030
22,259
Total net assets
$ 1,411,828
$ 340,776
$ 518,519
$ 437,030
$ 22,259
118
Dental Radio
Insurance Replacement Total
$ 1,906 $ 1,870,520 $ 8,455,418
- - 694,328
- - 10,000
1,906 1,870,520 9,159,746
- 43,475
- 175,409
- 4,338,024
- 4,556,908
1,906 1,870,520 4,602,838
$ 1,906 $ 1,870,520 $ 4,602,838
119
City of San Rafael
Combining Statement of Revenues, Expenses and Changes in Net Assets
All Internal Service Funds
For the year ended June 30, 2004
OPERATING REVENUES:
Charges for services
Refunds
Other operating revenues
Total operating revenues
OPERATING EXPENSES:
General and administrative
Insurance premiums and claims
Maintenance and repairs
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES:
Investment income
Total nonoperating revenues
INCOME (LOSS) BEFORE
OPERATING TRANSFERS
OTHER FINANCING SOURCES (USES):
Proceeds from sale of assets
Transfers in
Transfers out
Total other financing sources (uses)
Net income (loss)
NET ASSETS:
Beginning of year
End of year
Equipment
Building
Employee
Liability
Worker's
Replacement
Maintenance
Benefits
Insurance
Compensation
$ 694,662
$ 39,810
$ 710,348
$ 950,030
$ 1,785,052
-
-
189,516
197,610
32,066
678,277
73,335
684,905
-
-
1,372,939
113,145
1,584,769
1,147,640
1,817,118
172,497
8,314
1,620,122
- -
-
-
-
1,113,470 1,880,529
1,441,114
109,752
-
- -
1,613,611
118,066
1,620,122
1,113,470 1,880,529
(240,672)
(4,921)
(35,353)
34,170 (63,411)
32,999 8,984 4,381 23,658 85,410
32,999 8,984 4,381 23,658 85,410
(207,673) 4,063 (30,972) 57,828 21,999
38,360 - - - -
- 100,000 - - -
(200,000) - - - -
(161,640) 100,000 - - -
(369,313) 104,063 (30,972) 57,828 21,999
1,781,141 236,713 549,491 379,202 260
$ 1,411,828 $ 340,776 $ 518,519 $ 437,030 $ 22,259
120
Dental Radio
Insurance Replacement Total
$ 444,877 $ 250,040 $ 4,874,819
9,455 - 428,647
- 4 1,436,521
454,332 250,044 6,739,987
- 569,087 2,370,020
452,526 - 3,446,525
- - 1,550,866
452,526 569,087 7,367,411
1,806 (319,043) (627,424)
43,373 198,805
- 43,373 198,805
1,806 (275,670) (428,619)
- 38,360
- 100,000
- (200,000)
- (61,640)
1,806 (275,670) (490,259)
100 2,146,190 5,093,097
$ 1,906 $ 1,870,520 $ 4,602,838
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City of San Rafael
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2004
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
Equipment Building Employee Liability Worker's
Replacement Maintenance Benefits Insurance Compensation
$ 1,372,939 $ 118,145 $ 1,667,511 $ 1,147,640 $ 1,817,118
(1,613,374) (103,415) (1,714,296) (919,726) (1,508,507)
(240,435) 14,730 (46,785) 227,914 308,611
100,000
(200,000) - -
(200,000) 100,000 -
CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES:
Cash received from sale of assets 38,360 - - Net cash provided (used) by capital financing activities 38,360 - - -
CASH FLAWS 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:
Due to/from other funds
Loans receivable
Accounts payable
Insurance claims payable
Total adjustments
Net cash provided (used) by operating activities
32,999 8,984 4,381 23,638 85,410
32,999 8,984 4,381 23,658 85,410
(369,076) 123,714 (42,404) 251,572 394,021
1,790,799 225,045 42,404 878,436 3,288,481
$ 1,421,723 $ 348,759 $ - $ 1,130,008 $ 3,682,502
$ (240,672) $ (4,921) $ (35,353) $ 34,170 $ (63,411)
- -
175,409
-
-
- 5,000
(92,667)
-
-
237 14,651
(94,174)
(1)
(1,524)
- -
-
193,745
373,546
237 19,651
(11,432)
193,744
372,022
$ (240,435) $ 14,730
$ (46,785) $
227,914 $
308,611
122
Dental Radio
Lismance Replacement Total
454,332 $ 250,044 $ 6,827,729
(454,327) (569,087) (6,882,732)
5 (319,043) (55,003)
100,000
(200,000)
(100,000)
38,360
38,360
1,901 43,373 200,706
1,901 43,373 200,706
1,906 (275,670) 84,063
- 2,146,190 8,371,355
1,906 $ 1,870,520 $ 8,455,418
$ 1,806 $ (319,043) $ (627,424)
- 175,409
- (87,667)
(1,801) - (82,612)
- 567,291
(1,801) - 572,421
$ 5 $ (319,043) $ (55,003)
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